Question 1 > 

As a marketing manager for HSBC, which segmentation variables might you use to
best understand HSBC target customers. Support your answer with relevant justification
1. HSBC is a Global Organization in all continents. There are multiple layers of segmentation
HSBC may adopts in understanding its customers.
2. Firstly, Geographic Segmentation
a. HSBC may operates its business (Personal & Wealth Management, Commercial
Banking, Global Banking & Markets) based on the countries they are in business
with. For example, in May 2021 it announced an exit from US retail banking
business and only to focus on global wholesale and wealth management instead.
This is due to fierce competitions in Retail and mass consumer segment. HSBC US
are to focus more on high net worth and international clients (from abroad) living
in the US such as HSBC Premier and Private Banking Customers.
b. Compare this with HSBC in China, Hong Kong, Singapore or even Malaysia where
the consumer market opportunities are so much bigger with potential
incremental growth is expected to be seen.
3. Secondly, Demographic Segmentation
a. When we dive deeper into each region / countries, HSBC will 'curate' its offerings
based on the Demographic analysis for each country
b. For Example, Global Private Banking is only offered in few countries based on the
population's income and its customer's needs as the primary factors.
4. Thirdly, Psychographic Segmentation
a. This is another contributor to how HSBC's diverse services are catered to different
group of target markets
b. Further deep dive into each countries, we can see how mass market services
differs even more. For example, credit card promotional campaigns may differs
from country to country based on the country values, preferences or even its
seasonal holidays. HSBC Singapore may focus more of its marketing / promotional
campaigns of its credit cards customers on mileage points during the holidays
compared to HSBC Malaysia focusing the same campaign but focus more on
gastronomic benefits.
5. Lastly, Behavior Segmentation
a. HSBC with its large consumers market will have an in-depth analysis on how their
customers uses its services
b. For example, HSBC Singapore savings account focus on benefits of various
channel of withdrawals while HSBC Malaysia savings account focuses on no
monthly fee and minimum transaction per month. This is due to both segment's
customer behavior is different.
 
Question 2 > What do you think of HSBC strategy of connecting buyers and suppliers for faster,
better, and more trusted business? Which market segments does this address, and how does it
uniquely position itself in the minds of the B2B/B2C communities?
HSBC has been with us for more than 150 years. A company with long history and solid standings,
its strategy has always been prioritizing its customer in all aspects. This has been true when its
main purpose is to opening up a world of opportunities for their customers via 4 main elements
1. By focusing on their strength
a. HSBC has been re-structuring its business all over the region. As per example in
question 1 one of its major move was to exit the mass consumer market in US and
focus solely on its private banking and wholesale segment. Additionally HSBC
Canada sold 100% its common equity to RBC due to a low market share and will
be focusing more of its investments in Asia instead.
2. Digitize at Scale
 a. Partnering up with technology innovator is one of the action that can significantly
improves its services. This is not just a service for consumers, but also as part of
HSBC's strategies to improves its securities (B2B aspects).
3. Energize for Growth
a. HSBC has been a big in its adoptions of diversity and inclusion campaign. From
hiring diversified employees across the region and focus on 'best place to work' to
developing the people with training and future-needs skills.
4. Transition to Net Zero
a. Focus on more sustainable products and services. For example, HSBC committed
to ensure by end of 2026, all its debit and credit card with recycled plastic
instead. Additionally, HSBC also works with Clean Waterways in Hong Kong to
clean its waterways.

DB Week 2-4

1. As a marketing manager for HSBC, which segmentation variables might you use to
understand HSBC's target customers best? Support your answer with relevant
justification.

HSBC's 64 locations across Africa, Asia, Oceania, Europe, North America, and South
America service the bank's approximately 40 million customers. In 2020, the bank was
the sixth largest in the world, measured by market capitalization and total assets. HSBC
has been around for 150 years, a long enough time to rise to the top of the banking
industry and into the Fortune 500.

Since it serves customers worldwide, the multinational bank HSBC employs different
types of marketing strategies according to the market, location, and behaviour, and that
considers demographics (e.g. gender, family, age, income and ethnicity etc.) and
geography (city, country and region etc.) segmentation when marketing to consumers
and businesses.
1. Geographic Segmentation
a.
strategy supports our ambition of being the preferred international financial partner for
our clients It includes targets for accelerating the shift of capital to areas, principally Asia
and wealth, that have demonstrated the highest returns and where we have sustainable
advantage through scale
Since it serves customers worldwide, the multinational bank HSBC employs a strategy
that considers demographics and geographic segmentation when marketing to
consumers and businesses.

Bhasin, H. (2019, January 11). Marketing Strategy of HSBC Bank – HSBC Bank Marketing Strategy.
Marketing91. https://www.marketing91.com/marketing-strategy-hsbc/
Pro, E. (n.d.). [2022] HSBC Marketing Segmentation Targeting Differentiation Positioning Solution.
embapro.com. https://embapro.com/frontpage/marketingstpcoanalysis/7702-hsbc
2. What do you think of HSBC's strategy of connecting buyers and
suppliers for faster, better, and more trusted business? Which market
segments does this address, and how does it uniquely position itself
in the minds of the B2B/B2C communities? 

HSBC's strategy for this would form part of the "Digitize to Scale"
strategy whereby it enables faster, easier, and more secure digital
banking for HSBC clients. To address the SMEs (small to medium-
sized enterprises), HSBC launched HSBC VisionGo in Sep 2020
(rebranded now to HSBC Business Go) which is a business-to-
business (B2B) digital community platform that allows connecting
SMEs, startups, and prospective entrepreneurs, in line with scaling up
its digital capabilities to offer more for this market segment. This
platform, in essence, will help to build networking opportunities and
foster dialogues and collaboration within the business community
and indeed help to adapt to the new ways of working as this platform
employs machine learning technologies. HSBC has also outlined clear
conduct principles and a code of conduct with suppliers in line with
ESG commitments that HSBC had committed to. This has enabled
HSBC to be one of the top brands in the eyes of B2B & B2C as this
platform had opened up the world of opportunity (which is HSBC's
purpose statement) digitally for this market segment.