Marketing Management Report: HSBC Bank Malta Analysis and Strategies

This report provides a comprehensive marketing analysis of HSBC Bank Malta plc. It begins with an introduction to marketing management and its application in the financial services sector, followed by an overview of the industry background in Malta. The report then delves into HSBC Bank Malta's background, competitive analysis using Porter's Five Forces model, market position, and unique selling proposition. A marketing review is conducted, including SWOT and PESTEL analyses, and an examination of the bank's potential for development in the market. The 4 Ps model is also discussed. The report concludes with an assessment of HSBC Bank Malta's marketing strategies and recommendations for future growth and success, considering both internal and external factors influencing the bank's performance. The analysis highlights the challenges and opportunities facing the bank in a dynamic market environment.

MARKETING
MANAGEMENT
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TABLE OF CONTENTS
1. INTRODUCTION.......................................................................................................................4
2. MAIN BODY...............................................................................................................................4
2.1 INDUSTRY BACKGROUND..................................................................................................4
2.2 COMPANY'S BACKGROUND...............................................................................................6
2.3 COMPETITIVE ANALYSIS OF THE COMPANY................................................................6
2.3.1 Porter's 5 Forces model.......................................................................................................7
2.3.2 Market Position of the Bank...............................................................................................9
2.3.3 Unique Selling Point...........................................................................................................9
4. MARKETING REVIEW...........................................................................................................10
4.1 SWOT Analysis...................................................................................................................10
4.2 PESTEL Analysis................................................................................................................12
4.3 Potential for Development in Market .................................................................................14
5. 4 P MODEL...............................................................................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
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EXECUTIVE SUMMARY
Marketing management concept used in businesses for planning, modelling, managing,
implementing, organising, controlling and making reviews of company's policies, tactics, rules
and marketing strategies which are performed by organisations. This report discusses concepts of
marketing to develop the understanding about business activities. Financial Services sector is
used to do the analysis. Also, discussed the firm's background along with its present market
condition. HSBC Bank Malta plc, operating in banking industry to meet the requirements of
consumers related to financial services. In this report organisation's background, competitive
analysis and present market condition is described, it helps to know how the bank is operating
and in which situation and what challenges they are currently facing. Next, it consists the
external and internal factors that affects their potential growth in market. Later, new product
introduced by the bank to overcome from the losses and how they grab the opportunities to
develop their business.
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1. INTRODUCTION
Marketing management defined as it is used in organisations to do the planning,
managing, organising, controlling and implementing the policies, rules, business tactics,
marketing strategies and different approaches to achieve the business objective. There are
various factors which influence the firm and its growth, it may be internal or external factors or
may be both. Further, it helps the company to earn profits and take competitive advantage. This
report discusses about marketing concepts with taking the financial industry. It will give the
insight knowledge about the practical approaches which are used by organisations. Later this
report carries idea about how the particular products and services offered by them, help the
buyers to satisfy their needs. Also, it helps the companies to achieve their desired goals. It has
internal and external analysis for the business, so it builds up the knowledge related to their
potential development in market. Lastly, it contains details about the new product launch, how it
will take place and gains success.
2. MAIN BODY
2.1 INDUSTRY BACKGROUND
Financial sector is a part of economy which is made up of the organisations and
institutions that gives help to retail and commercial customers through their financial services. It
comprises wide range of industries in which banks, real estate companies, insurance companies
and investment firms are included. In Malta, Finance service industry is the largest developing
sector. It supports the economic condition of the country at higher level, it contributes 12 percent
to the GDP of Malta (Bruhn, 2019). In Maltese Islands financial service sector costs up to €1
billion in terms of generating revenue either indirect or direct ways. There are various banks and
institutions, investment firms are opened ion the recent years, which serve the people with their
financial services in different forms.
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Illustration 1: Contribution of Financial industry in Malta's GDP
Illustration 2: Potential of growth in market of Malta

2.2 COMPANY'S BACKGROUND
In Malta, HSBC Bank Malta plc in one of the leading in financial services sector. It is
international banking and subsidiary of HSBC and operating as financial services group in the
country. It is the second oldest in the country and founded in 1882, now its CEO is Andrew
Neane, John Bonello is Chairman of the company. Its headquarter is situated in Valletta, Malta.
It has approximately 30 branches in Malta and Gozo which employ 1500 people in their
organisation. Net income of the company is €60.23 million (Farris and et.al., 2017). Also, this
helps the country in economic growth but in recent years HSBC bank Malta plc, has near to close
approx 8 branches in the country. So this create the activeness in the company's marketing
strategies. Further discussion in next part.
2.3 COMPETITIVE ANALYSIS OF THE COMPANY
In the financial service industry, there is rapid growth is observed in the country which
serves the large population and support the economy of it. HSBC bank Malta plc is the second
oldest bank and trust worthy for the people, so it covers the large pat of the market. It provides
finance and insurance services to their customers (Baker, 2016). For competitive analysis Porter
Five forces model is applied that provides insight knowledge
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2.3.1 Porter's 5 Forces model
Competition in Sector: It is first force and refers to the already existing competitors in particular
industry. If there is huge ratio of the competitors in a sector, then it lowers the power of the firm.
It risks higher for the company. HSBC bank Malta plc has various competitors in present are
MoneyCorp, Meta Financial Group, Southern National Bancorp of Virginia, First Merchants
(Pomering, 2017).
Banks Type Revenue Net income No. of
Employees
Services
HSBC Bank
Malta
public - - 1500 Banking
services,
insurance,
payments.
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Illustration 3: Growth of Financial service industry in Malta is higher than European
Union

MoneyCorp Private £50.4m £4m.1 561 Banking,
payments.
Meta Financial
Group
Public £486.8m £97m 1186 Banking,
payments.
Southern
National
Bancorp of
Virginia
Public £10.2m £33.7m 348 Banking,
payments.
First
Merchants
Public £76.4m £159.7m 1702 Banking
services,
insurance,
payments,
mortgages.
According to these data about its competitors, HSBC bank Malta has to face tough
competition with them.
Threat of Substitutes: Substitutes is the second force which drives the consumers to choose other
option which is reliable and suitable to them. In Malta people find the bank to deposit their funds
and substitutes like the investment companies give them better interest rates, so the public are
more attracted towards them (Alevizou, Henninger and Spinks, C., 2019). HSBC bank Malta plc
have higher risks with other options in the industry.
New entrant's threats: New businesses in industry impose harm to already existing firms in
sector. It is dependent on the efficiency of the new entrants that they do progress and generates
high revenues then it possess loss to other businesses. But in entering into market, many entry
barriers are there, which creates difficulty to establish business in marketplace (Séraphin and
et.al., 2016). According to the development of the financial sector in the country, HSBC has
threat from the new entrants as they find opportunities in this industry and it forces them to step
into it.
Bargaining Power of Suppliers: Suppliers of the raw material is very essential to maintain the
supply chain for the company. If there are various suppliers present in the industry, it weakens
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the negotiation power of the suppliers else it would be higher. In terms of the Banking sector
provider of IT, hardware, software, beverages, electronics, infrastructures are main. As per the
increment in the technology day by day it enhances the technology and well-equipped offices, it
higher the supplier's negotiation power in industry.
Negotiation Power of Customers: this is the major force, as the negotiating power of buyers is
always higher because of availability of various options in industry. In financial service sector,
there are various banks and companies are available in the market in Malta so the bargaining
power of the buyers are usually high (Kamboj and Rahman, 2017). HSBC Bank Malta has threat
from the consumers, so they have increase the range of their products and services.
2.3.2 Market Position of the Bank
HSBC Bank Malta achieves stability in market of Malta, but they have to consider their
current market situation which is near to loss. As the company is facing crises in the market,
approximately 8 branches of the company are near to shut down and it emphasize on their
reputation (Dadwal and Hassan, 2016). People trust on it but as per the development in the
technology advantage, people prefer other banks to invest, payments, other banking facilities.
But still company is taking actions related to it, they are trying to shift on the digital platform and
regains the stability.
2.3.3 Unique Selling Point
Unique selling proposition (USP) denoted to a feature that emphasize the product's
importance to buyers. USP shows benefits of the products, brand value, services provide by the
firm, that enables them to position itself effectively in market. It creates difference in the firm's
product from other businesses which makes the public to change their purchasing decision.
Unique Selling Point is another notation of USP that helps to firm in their development
(Camilleri 2018). USP explained to audience about the products features and importance through
branding. It positioned the company's product into mind of the target audiences.
HSBC Bank Malta plc USP are their brand value and trust of the public on them. They
give the security to their deposits and other banking facilities. Now company try to launch the
new product which HSBC bank Money, it is a mobile application which help to serve the many
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people at same time without any delays. Company Promote their products USP to increase the
awareness in public.
4. MARKETING REVIEW
Marketing audit concept used when there is need to review the plan, goals of company
and strategies prepared by the businesses to achieve the desired goals. By assessing external and
internal factors that influence the activities and operations done by the company, this helps to
know the condition of company in market. This helps the HSBC Bank Malta to know the
potential for growth in market.
4.1 SWOT Analysis
Strengths
 Distribution System: As they have good distribution system. They have collaborated with
dealers, financial agencies, business consultants which help HSBC to enhance the reach
to public and increment in its productivity (Yu and et.al., 2017).
 Return on Investment: company provide good interest rates on the deposition of the
money. Also, the make flexible interest rates for providing loan facilities to the
consumers. This helps the company to gain more customers.
 Skilled employees: HSBC Bank Malta plc has highly skilled employees at workplace
which services their customers and leads to satisfaction. They are trained time to time
enhance their efficiency, so they can work effectively.
 Promotion criteria: Company promotes their brand as the oldest bank in the country,
many people are associated with the bank due to their brand value. They do promotional
activities in association with the charity programs.
 Company has diverse portfolio of financial products and locations which helps them to
balance the risks (Zimmerman and Blythe, 2017). Cost cutting: company have applied measure in terms of the cost cutting in their
operational activities so this helps to increase its efficiency and long terms profitability.
Weaknesses
 Cash flow: Company face the fluctuations in cash flow, this disturbs their daily routines
for the business.
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 Market research: In Malta, banking industry is increasing vigorously, and the people have
different demands and expectations. So the HSBC bank Malta don't emphasise on the
proper market research so that they can give the needed facilities to the audience because
this is lacking in them (Bruhn, 2019).
 High employees turnover: Retention rate of the staff members in the company is low, as
they leave jobs very fast. So it increases the expenses of the firm like they need to process
the recruitment and selection again and again. It enhances their expenses and time in
terms to provide training to the employees.
 Branding: they focus to position themselves as the international brand so it losses the
connection with the local public.
 Decision making: In HSBC Bank Malta, decision-making process is centralised to the
upper authorities only. It creates de-motivation in the employees towards their work and
customers not get desired satisfaction form them (Farris and et.al., 2017).
Opportunities
 Internet: Nowadays people more prefer to use the internet on their mobile phones to
connect with different sides of the world. This creates scope for the HSBC bank to
develop the mobile application, websites, blog, E-Commerce, Social Media which help
them to enhance their reach towards potential customers.
 Technology advancement: Many companies install highly technical infrastructure at their
workplace which helps them to easier their tasks and maintaining the data (Pomering,
2017). HSBC bank Malta should take this opportunity seriously, as it will increase the
productivity. Also, they will be able to manage the records of their customers, access the
information each and every employee from anywhere.
 Population: In Malta, population is increasing so the banks needs to provide banking
facilities to them. So HSBC have the opportunity to open more branches in the country
which leads to customer satisfaction.
 Tax Policy: As the tax policy in Malta is flexible so the company can think to grab the
opportunity as they can open more branches in the country, introduce new products and
services to the people. Government tax policies gives relaxation to the banks to do their
business activities and does not extra charge to them.
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 Skilled workers: Company have the chance to recruit the skilled employees, as the large
population of the country have educational qualification, and they are highly skilled
(Alevizou, Henninger and Spinks, 2019). So it would save the company's expenses on the
trainings and development on the employees. Globalization: Company can focus to enter into global market due to flexible government
polices. They promote the businesses for the country's growth.
Threats
 Competitors: As the competitors are increasing day by day, so it creates the threat for
HSBC Bank Malta plc. Other banks are taking the competitive advantage due to their
strong promotional activities, offer different services, hiring skilled employees, shifting
on mobile applications, etc.
 New entrants: in Previous years, Malta is continuously developing in the banking service
sectors, it possesses higher growth in the market. It acquired 17th place in terms of the
banking sector in the world. This the strong figure for them, and it provides help to the
country's economic growth. So it pusher to enter the new business entrepreneurs to take
the opportunities (Dadwal and Hassan, 2016).
 Technology development: according to the rapid change in the technology in recent
years, it creates a revolution for the banking industry. All the companies in this industry
approaches to obtain the technology and upgrade the version of the software which
makes their growth easier and fast. Information and Communication Technology (ICT)
possess great help to businesses for their development, but HSBC Bank Malta did not
alert on time and took the required actions (Camilleri 2018).
 Exchange rates; as the exchange rate of the money fluctuates in international markets, it
posses higher risks for the banks.
 Substitutes: In Malta, lots of substitutes to the banks are present and people prefer them
to invest heir funds and depositing the amounts. So it creates higher risk for HSBC in
country due to the other options available in the market.
 Government policies and regulations: As the governmental rules and regulations changes
any time, so it threats for the company (Zimmerman and Blythe, 2017). It may be in
taxation cost, import-export cost, cost of telecommunication, etc.
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4.2 PESTEL Analysis
Political Factors
Malta supports the financial services sector related companies to do business in the
country. This helps them to modify their economic position, so they provide opportunities to
business for the expansion. HSBC Bank Malta plc has the opportunities to open the new
branches in the country as the political conditions are in favour of the banking industry. It helps
to generate higher revenue. Government policies in the country support the banks in terms to
provide the banking facilities to their customers. As the Brexit happened in the European Union
countries it impacts the businesses in many ways but the government done the tax-free, import
duties for trading (Bruhn, 2019). So the HSBC have to keep an eye on the changes of the
political situation it creates fear in terms to increasing the tax duties.
Economical Factors
Economic Condition of the Malta is quiet stable. The people are more involved in
sourcing the income ways, also the small scaled businesses are expanding with good speed. So it
helps the business to grow in the market because they contribute a large part of the revenue in the
economy of the country. Banking industry support the economy the country, it increases the
GDP rate y 12%. HSBC Bank Malta has the advantage of it, it helps them to gain the stability in
the business. But the company need to suffer at the time of financial crises in the country.
Social Factors
Population in Malta is literate and active, they prefer to buy qualitative goods for their
use. It creates opportunity for HSBC to become primary choice of public. HSBC provides good
return on investment to their customers which exhibits great advantage for the company
(Pomering, 2017). Most people in the country use their services and products as they make
comparison from other banks and finance services, HSBC bank's policies attract them. But some
reasons like people don't get priority in the banks and the customer services are not up to the
mark. So the people leave and choose another better option.
Technological Factors
In recent years the technology advancements is increased. Youth and old generations
prefers mobile phones up to 91%, for their comfort in the country. So the banking services are
shifted to digital platform. People prefer the online banking services due to the convenience so it
possesses the opportunity for the HSBC Bank Malta plc, as they can develop some new products
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which helps to service the people online. Due to unawareness HSBC had to pay the cost in terms
of Closure of some branches in the country.
Environmental Factors
Environmental factors affect the business in the country in many ways. For example the
banks uses the generators for the electricity supply in the offices, it creates huge carbon emission
which pollutes the environment. So HSBC Bank Malta plc has to be concerned for this and less
use the generators which harms the environment.
Legal Factors
In Malta, legal procedures should be followed in every industry is necessary. In banking
sector it is quite strict because there may be chances of the fraud in money transactions with the
customers so the laws supports them. They have clear instruction to the banks about taking
appropriate actions on time (Séraphin and et.al., 2016). So it would not loss the public. HSBC
bank Malta takes care about the legal formalities because it helps them to gain the trust of the
public in context to save their money.
4.3 Potential for Development in Market
All the external and internal environmental aspects analysis provides help to do proper
assessment about the condition of market for HSBC Bank Malta plc. As the bank positioned
stable in the market, but they can grow more, as they have potentials in terms of expansion of
their business. It is denoted as the trusted bank in the country, so they have the opportunity to
open the new branches in other sides. It helps them to cover huge part of the market. Also, the
company should implement the technology innovation at the workplace. Bank can introduce new
product HSBC Bank Money, which help the people to serve online (Kamboj and Rahman, 2017).
People would be more attracted towards this. Thus, the bank have the potential of development
in the market.
5. 4 P MODEL
New product planned by the HSBC Bank Malta plc to be launched in the market. It is
HSBC Bank Money wallet which is a mobile application for the customer so that they can easily
access their accounts anytime on mobiles. This provides the banking and payments facilities to
the users. For better understanding, here implemented 4 P's model
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Product: Product of any business is the core thing which help them to meet their goal.
HSBC Bank Malta plc is working from the long time and achieves stability in the market, but
due to revolutionary changes held in the banking industry it pushes new entrants. HSBC bank
lack to take the competitive advantage at fully, it possesses the huge losses to them. They are
near to close approx 8 branches in the country (Pomering, 2017). So now they are taking
appropriate actions related to the regaining the stability in market and earn more profits. They
introduce the new mobile application of bank in which the HSBC Bank Money Wallet provides
the facility anytime to the customers. It makes easier the bank payments, transfers, instant loan
facility on low interest, etc. this app can be accessed easily anywhere in the country by the user.
It makes their daily life easier, they don't need to wait in queues outside the ATM, or visiting
banks again and again. This saves the timing for both the bank employees and customers
(Séraphin and et.al., 2016). Also, it helps them to provide easy registration through using
particular ID related to the customers. It enhances the efficiency of the bank and increases the
productivity. It helps to enhance the reach of the banking services to the potential customers.
Price: Price of product is important to set first, after finalising product. Cost must be
affordable and reliable to the user. People prefer qualitative items on cheap prices. Due to the
competition in the banking industry HSBC bank Malta needs to give some facilities at free of
cost to the consumers.
This mobile banking application costs free for the existing customers of the bank and
minimal cost for new registered by the user (Yu and et.al., 2017). It does not apply any charge on
the transactions done via the mobile application. But the user have to add money to this wallet,
so they can easily pay anywhere.
Promotion: Promoting the brand through advertisements or many other ways about
services and products provided by companies are important because this aware the public and
positioned the product in their minds. They get to know about the products along with the brand
name (Zimmerman and Blythe, 2017). So, this provides help to companies to be identified easily
by consumers which later influences their buying decision.
HSBC Bank Malta, uses the promotional strategies in which branding, advertising, public
relations, use of digital media are included to promote their new product. It has full information
about the product and also mentioned with can be used by the user. So it develops the thinking of
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the people in the country. By explaining the Unique Selling Proposition (USP) to the consumers,
it can take the competitive advantage.
Place: Place plays very important role for the businesses to plan for introducing their
services and goods. Locations should be easily accessible by the consumers where goods and
services are availed by firm. Also, it should help in maintaining the supply chain for the
businesses.
HSBC Bank Malta, placed their product on digital platform, application is available online. It
can be easily accessed by the users. Many customers can use the application on the same time
and this can service them directly without any conflicts. But the internet facility is required to
properly use this product (Alevizou, Henninger and Spinks, 2019).
CONCLUSION
According to the present report, it brings insight knowledge about the marketing
management concept with better understanding. As the Banking industry is taken for the analysis
and HSBC Bank Malta plc is chosen for the proper evaluation of the concepts to enhance the
practical approaches towards business. Report discussed on conducting the marketing audit to
know the potential of growth in the market, so the SWOT analysis and PESTEL analysis is done.
Further the new product launch by the bank is analysed using the 4 P's model. Report suggested
how these marketing concepts help the in businesses for achieving the stability and prestige in
the market.
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REFERENCES
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Camilleri, M.A., 2018. Integrated marketing communications. In Travel marketing, tourism
economics and the airline product (pp. 85-103). Springer, Cham.
Dadwal, S. S. and Hassan, A., 2016. The augmented reality marketing: A merger of marketing
and technology in tourism. In Mobile Computing and Wireless Networks: Concepts,
Methodologies, Tools, and Applications (pp. 63-80). IGI Global.
Farris, P. and et.al., 2017. Key marketing metrics: the 50+ metrics every manager needs to know.
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Kamboj, S. and Rahman, Z., 2017. Market orientation, marketing capabilities and sustainable
innovation. Management Research Review.
Pomering, A., 2017. Marketing for sustainability: Extending the conceptualisation of the
marketing mix to drive value for individuals and society at large. Australasian Marketing
Journal (AMJ), 25(2), pp.157-165.
Séraphin, H. and et.al., 2016. A marketing research tool for destination marketing organizations'
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Yu, W. and et.al., 2017. The impacts of IT capability and marketing capability on supply chain
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Zimmerman, A. and Blythe, J., 2017. Business to business marketing management: A global
perspective. Routledge.
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