HSBC Bank Marketing Plan: Brand Resilience and Strategic Options

This report provides a comprehensive analysis of HSBC Sri Lanka's marketing plan, focusing on building brand resilience. It begins with an organizational summary, detailing the bank's history, products, services, customer base, and competitive landscape. A strategic audit is then conducted, examining the internal and external environments, including a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The report outlines HSBC's mission, vision, and marketing objectives, followed by an exploration of strategic options, including 'pushing through' and 'pulling' strategies, evaluated using relevant models. The report also covers strategic decisions in communication policy, the development of advertising plans, and the importance of market and competitor analysis in building a sustainable competitive advantage. The analysis aims to future-proof the organization through building brand resilience in a challenging environment.

1
Name:
Course
Professor’s name
University name
City, State
Date of submission

2
a) Organizational Summary
Organizational name
HSBC Sri Lanka is a commercial and banking services company operating in Sri Lanka and a
wholly owned subsidiary of the world renowned HSBC Bank. It opened its door in Sri Lanka in
1892 making it the oldest bank in the country and also the largest bank in the country. This was
after 27 years after the inception of HSBC in Hong Kong and Shanghai. Its strategy was to be the
biggest bank by maintain an international look from the beginning (Baker, 2014).
Range of products and services provided
All its activities by then centered on finance and trade. It operates in the banking and global
markets industry and Its products includes; Credit, Loans, Savings and consumer lending. It is a
private business and a global entity.
Size of organization
In terms of employee size HSBC Sri Lanka has employed over 1700 employees.
Size of organization in terms of turnover of assets, profits and revenues is $ 17. 2 billion.
However, its estimation for year ending 2017 was US $ 19.1 Billion. It gave its shareholders
dividend that were above the normal industry give out making its share very attractive in the
market (Banerjee, 2017).

3
Customer base
It operates under both B2C and B2B. This is because it has both business clientele and individual
consumer clientele.
Main competition
The main competition includes the major banks in the world and the upcoming Sri Lankan
banks. However, the two main competitors includes the Commercial Bank and the standard
chartered bank in Sri Lanka.
The current brand resilience is big and HSBC is considered among the biggest companies in Sri
Lanka impacting on the social economic aspects of the people and helping the society in terms of
Corporate Social Responsibility (Chernev, 2018).
b) Strategic audit Using relevant models and frameworks:
 analyse the internal and external environments, with a view to understanding the
organisation’s current performance in relation to its brand relevance and competitive
position
The content of the concept of "organization's environment
All enterprises operate in a specific environment that conditions their actions, and their survival
in the long run depends on the ability to adapt to the expectations and requirements of the
environment. Distinguish the internal and external environment of the organization (Dimanche,
and Prayag, 2016). The internal environment includes the main elements and subsystems within

4
the organization, ensuring the implementation of the processes occurring in it. The external
environment is a combination of factors, subjects and conditions that are outside the organization
and are capable of influencing its behavior.
Elements of the external environment are divided into two groups: the factors of direct
and indirect impact on the organization. The environment of direct influence (business
environment, microenvironment) includes such elements that directly affect the business process
and experience the same influence of the functioning of the organization. This environment is
specific to each individual organization and, as a rule, is controlled by it.
The environment of indirect influence (macroenvironment) includes elements that
influence the processes occurring in an organization not directly, but indirectly, indirectly. This
environment is generally not specific in relation to an individual organization and, as a rule, is
beyond its control. The internal environment and its variables: managers, workers, culture
The internal environment of the organization can be viewed from the point of view of statics,
highlighting the composition of its elements and structure, and from the point of view of
dynamics, i.e. the processes occurring in it. The elements of the internal environment include
goals, objectives, people, technology, information, structure, organizational culture and other
components.
A special place in the internal environment of the organization is occupied by people.
The results of the organization’s work ultimately depend on their abilities, education,
qualifications, experience, motivation and dedication (Elmes, and Barry, 2017). The realization
that the organization is primarily the people working in it, that they are the main resource of the

5
organization, is changing the attitude towards the staff. Managers pay great attention to the
selection of people, their introduction into the organization, engaged in the training and
development of employees, ensuring a high quality of working life.
The external environment of direct and indirect effects. Characteristics of the external
environment The external environment of direct exposure includes the following main elements:
consumers, suppliers, competitors, the labor market, external owners, government regulatory and
control authorities, strategic alliances of an enterprise with other firms. The macro-environment
of an enterprise is formed by economic, political-legal, socio-cultural, technological and
international conditions. The economic environmental conditions reflect the general economic
situation in the country or region in which the enterprise operates (Foxall, 2014).
 Summarize the brand issues in relation to the internal and external environment, using a
SWOT/TOWS analysis.
First, the legal system establishes the rules of business relationships, rights,
responsibilities, obligations of firms, including restrictions on certain types of activities. From
the knowledge and compliance with the adopted laws depend on the correctness and conclusion
of contracts, the resolution of controversial issues. In modern conditions, the role of
environmental protection laws, consumer rights, product safety standards, fair trade is increasing.
SWOT Analysis
Strengths
 Strong leading position in the country
and globally
Weaknesses
 Stakeholders may change their
strategy

6
 Market knowledge and expertise into
emerging and future markets.
 Developing international perspectives
 Diversification of market location
 The global business enterprise of
HSBC
 Reliant on customers as they can
switch for cheaper banks
 Challengers can use the element of
success of the bank against it
 Not viewed as a local bank by Sri
Lankan

Opportunities
 Expansion to other parts of Sri Lanka
 New potential market due to
innovation of products
 Market diversification( products and
non-banking related)
 Evolvement into the future design of
the whole market
Threats
 Local banks competition
 Empirical foreign attributes
 New strong entrants into the market
 Change of the needs of consumers
 Increase in micro finance institutions.
c) Objectives
 Appraise the organization’s mission/vision and outline the organisation’s overall
marketing objectives.
Vision: HSBC Bank Sri Lanka is that we aspire to be the world’s greatest specialist in banking
driven by commitment, values and core philosophies.
Mission: to improve the banking industry and to offer the best financial and banking services to
everyone in sri lanka.

7
 Develop objectives that relate to the creation of a resilient brand.
Strategic decisions in communication policy and ways to implement them
For the most effective impact on target consumers and ensuring sustainable operation of the
enterprise, in the framework of the overall marketing strategy, they develop an appropriate
communication strategy that is implemented through the use of advertising, sales promotion,
public relations, and personal sales.
The communication goals of the bank are determined by a number of factors: the characteristics
of the product; stage of its life cycle; competitive position of the enterprise; features of mastered
segments; selected positioning concept. Thus, when launching a new product to target segments,
an enterprise should formulate communication goals, the main ones of which are: familiarizing
customers with the product or raising awareness about it; the formation of consumer perception
of the product, brand or company; stimulation and promotion of the original purchase of a new
product.
d) Strategic options
The strategy of “pushing through” - the main marketing efforts are focused on intermediaries to
encourage them to accept the company's brands in their range, to create the necessary products ,
to provide its products with a good place in the sales area and to encourage customers the to get
company's products. Its goal: to achieve voluntary cooperation with the mediator, offering him
attractive conditions, and promote his product in any way possible. Strategy implies a

8
harmonious relationship with intermediaries and the main role in this is played by the sales
representatives of the bank. A strategy can be chosen in cases where:
 the bank introduces an innovative product to the market about which it is necessary to
inform intermediate and final consumers;
 the bank has unlimited financial resources and is not afraid of the effect of rejection;
The strategy of "pulling" - all efforts focus on the final demand, ie, on the end user, bypassing
intermediaries. The strategy is aimed at creating a favorable relationship to a product or brand at
the level of final demand, so that, ideally, the end user would require this brand from an
intermediary and thereby encourage him to trade in this brand. In contrast to the pushing
strategy, an enterprise seeks to create forced cooperation from intermediaries (Tomczak,
Reinecke, and Kuss, 2018). Consumers play the role of a kind of pump: the brand is drawn into
the sales channel due to final demand. The strategy can be used when the product is of high
quality and can sell "itself", as well as if you plan a broad communication program of its
presentation on the market. Tactical methods of implementing the strategy of "pulling" are: the
implementation of public relations; advertising in the media; lotteries, promotional games;
providing coupons for preferential purchase of goods; provision of goods for temporary use with
subsequent payment; leasing, if we are talking about equipment, complex technology.
d) Strategic options

9
 Using appropriate models and frameworks, evaluate the strategic options for creating a
resilient brand
Proactive communications are created on the basis of future consumer requests in the form of
messaging, leading competitors and consumer expectations. They assume the use of special
information transmission channels in which it is possible to receive a return response from
consumers. These channels include telemarketing systems, Internet sites, online stores, virtual
exchanges, etc. As you can see, the choice of a communication strategy predetermines the choice
of certain communication tools. At the same time, it is important to understand their advantages
and disadvantages. After determining the priority communication tools, the development of plans
for their implementation follows. At large enterprises, plans for advertising, sales promotion,
personal sales, public relations, participation in exhibitions and fairs with deadlines, budget and
channel (the venue of each event) are made separately (Elenkov, 2014). The development of an
advertising plan consists of the following stages: a number of specific objectives, divided into
demand-related and image-related); establishing responsibility (using its own unit, as well as
agencies for each product group); budget allocation (choosing a method of setting a general
budget for promotion; determining a detailed advertising budget); choosing an advertising object
(precise definition of markets or its sectors to be covered and to be influenced); advertising
content (formulation of the main advertising and commercial theme) selection of advertising
media and advertising media (analysis of factors: cost, useless audience, coverage, frequency,
message stability, impact level, occupancy and deadline for submission (Hill, 2017). The choice
of the main and auxiliary advertising media); the creation of advertising messages: the content of
the message is determined (style, motivation, attractiveness); the plan of promotional activities:
the frequency of advertisement repetition; quality, profitability; distribution by specific

10
advertising means; deadlines • monitoring the implementation of the plan and the effectiveness
of advertising (developing control over the implementation of the plan; comparing the money
spent with the results of advertising and making adjustments to the plan).
From strategic marketing management to building sustainable competitive advantage Strategic
market management External analysis (Proctor, 2014)
Analysis of customers . (segment, motivation, unmet needs)
Competitor analysis (identification, strategic groups, goals, strategies, operations, corporate
culture)
Market analysis (market size, expected growth, entry barriers, distribution system, trends,
success factors)
Environmental analysis (technological component, laws, economic component, socio-cultural
component)
Opportunities, threats and strategic issues
Internal analysis
Performance analysis (profitability, sales, share capital structure, cost analysis, product quality,
etc.)
Determinants of strategic choice (past and present strategies, strategic problems, constraints,
strengths and weaknesses). Strategic strengths and weaknesses, problems, limitations, issues

11
Definition and choice of strategy
Overview of alternative missions, identification of strategic alternatives, product-market-
investment strategy, functional area strategy, experience, synergy, strategy selection,
implementation plan and strategy review. Emerging market management tools are becoming an
interdisciplinary area of activity. Marketing is organically woven into the strategic market
management scheme, complementing the latter with content. Marketing is not perceived
separately from strategic management, and its tools are modified under the influence of a
changing strategic paradigm.
Marketing provides its apparatus, skills, and schemes for analyzing customers, competitors, the
market, the environment, and thus meaningfully fills the external analysis unit. Marketing is
involved in the analysis of functioning, participating in assessing customer satisfaction, product
quality, brand and its value, new product, etc. If we proceed from the fact that the marketing
concept is based on the evolving relationship between production and consumer, the desire to
harmonize and balance their proportions in a single commodity flow (McDONALD, 2016).
Marketing is present throughout the scheme conceptually. In justifying the choice of a strategic
chain: product-market-investment, it is impossible to do without imbalance. It is achieved by
evaluating potential consumers of the target market or its segments, offering a specific way to
meet these needs with a certain range of goods and services.
Strategic market management

12
Strategic assets or competencies that provide the basis for building sustainable competitive
advantage (SCA). Under the strategic assets refers to the brand, brand, customer base,
partnerships (Payne, and Frow, 2014). When a corporate strategy or organization operating in
several business areas, additional components appear:
Resource allocation between business units. Distribution shall be generated within the
organization of the building, equipment, financial resources.
e) Tactics
 Propose the tactical tools which should be used to implement your marketing plan to
support the creation of a resilient brand.
The interpenetration and mutual enrichment of two developing theoretical directions is also
reflected in the refinement of the stages of strategic marketing planning. Shows how this or that
strategic direction is revealed through a set of functional strategies, specified in the strategic set
of marketing tools: product strategy (new product), pricing strategy, promotion and distribution
strategy. The conceptual core of marketing (coordination of proportions and production of
consumption) focuses on the second strategy of stage . At the third stage, specific options are
proposed for achieving balance through differentiating one's own product relative to competing
organizations.
Marketing communications and organizational structure of the company

13
Before considering the organizational requirements necessary for the implementation of an
integrated communications strategy, let us learn about the general organizational structure of
firms and the terminology that HSBC Bank managers can meet.
Creating a synergy effect: benefiting from complementarity and mutual support Business units
can be represented in the form of three main components: the decision on product-market
investments, which determine the scope of business, the intensity of investment and the
distribution of resources. Conditions, a special role in the formation of a competitive strategy
belongs precisely to the creation of conditions for the generation of strategic assets and
competence as Again, for developing sustainable competitive advantages. Development as
expansion and diversification is replaced by an understanding of development as the creation of
conditions for the generation of strategic assets (Varadarajan, 2018).
Managers exercise control over the implementation of marketing strategies that can help achieve
the company's goals. In addition, they make all decisions on marketing mix and distribution of
resources between different departments of the marketing service. The company's top executive
responsible for marketing can be called vice president or director of marketing. The director of
marketing manages the work of marketing staff who specialize in various types of marketing
communications, such as advertising or sales promotion. An independent agency that assists the
company in marketing communications may relate to the marketing group of the company as its
client or customer.

14
e) Controls and measurement
Marketing communications activities can be organized in various ways. The company can
manage their implementation from the inside by creating special departments (advertising, sales,
public relations, etc.) or with the help of their own agencies. External agencies, for example,
advertising or public relations agencies, are organizations that assist the client company in
marketing communications. Customer companies work with such agencies because they have
significant experience in this field and can do the work they specialize in more effectively. In
many companies, the planning and implementation of MC is the responsibility of specialists who
are in the position of the head of the marketing service or the head of the advertising department.
In small firms, its owner or manager can carry out these activities independently or with the help
of a small staff. Specialists who are responsible for the implementation of MC, must perform a
variety of functions, some of which they can transfer to external agencies or freelancers (West,
Ford, and Ibrahim, 2015). The functions for which the leading specialist in marketing
communications is responsible
 proposed measurement tools for determining the success of the marketing plan,
including financial, resources and time-based measures.
A large company with several consumer brands can distribute marketing functions for each of
them among the managers responsible for a particular product. These managers (also called
brand managers) are leading specialists in individual brands and are responsible for coordinating
sales, product upgrades, solving financing issues, making a profit, and implementing marketing
communications.

15
At the corporate level, top management sets common goals and develops strategies for
achieving them. At the same time, the marketing department is engaged in the development of
marketing goals and the creation of marketing strategies linked to the corporate business plan
(Vellas, 2016). In turn, the marketing plan contains a set of goals and strategies for each element
of the marketing mix - product, its distribution method, price and marketing communications
(taking into account the activities of suppliers, consultants, company personnel and the features
of marketing marketing strategies).
References

16
Baker, M.J., 2014. Marketing strategy and management. Macmillan International Higher
Education.
Banerjee, S.B., 2017. Corporate environmentalism and the greening of strategic marketing:
Implications for marketing theory and practice. In Greener Marketing .Routledge. (pp. 16-40).
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Dimanche, F. and Prayag, G., 2016. Visitor driven service experiences in a city destination: A
mobile ethnographic approach. Routledge
Elmes, M. and Barry, D., 2017. Strategy retold: Toward a narrative view of strategic discourse.
In The Aesthetic Turn in Management .Routledge. (pp. 39-62).
Elenkov, D., 2014, March. Experiential Exercise with Multinational Student Teams: Researching
Together a Multinational Corporation and Developing Jointly a Strategic Marketing Plan for IT
Using Blackboard. In Developments in Business Simulation and Experiential Learning:
Proceedings of the Annual ABSEL conference (Vol. 41). (pp. 39-62).
Foxall, G., 2014. Strategic Marketing Management (RLE Marketing). Routledge.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education. Routledge.(pp. 101-132).
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The
marketing book Routledge. (pp. 108-142).
Payne, A. and Frow, P., 2014. Developing superior value propositions: a strategic marketing
imperative. Journal of Service Management, 25(2), pp.213-227.

17
Proctor, T., 2014. Strategic marketing: an introduction. Routledge. pp.1-7.
Tomczak, T., Reinecke, S. and Kuss, A., 2018. The Information Basis of Marketing
PlanningMarketing planning. In Strategic Marketing (pp. 19-48). Springer Gabler, Wiesbaden.
Varadarajan, R., 2018. Theoretical underpinnings of research in strategic marketing: a
commentary. Journal of the Academy of Marketing Science, pp.1-7.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education. Routledge. pp.1-17
West, D.C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage.
Oxford University Press, USA.pp. 22-24