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HBL – PSL Case Study Assignment Questions

1. How do customers go about selecting a bank? HBL? What consumers

segments exist at HBL and how do they purchase services?

In this particular case study the authors of this case study who are also the respective professors
of LUMS chose a sample size of 52students from the university for a survey. The findings are as
follows, Numerous factors influence the choice of bank by customers, including HBL. People
frequently take into account bank reputation, branch location, and referrals from friends or
employers. Given that HBL was Pakistan’s first commercial bank and has been around since
1947, its established history probably helps it draw its clients. In addition, the bank provides
services to three distinct customer segments: corporate, commercial, and retail.

Corporate Segment: Usually exceeding PKR 4 billion in revenue annually, this segment
consists of elite multinational and local corporations. In order to meet their needs for expansion,
the relationship teams provide a range of financial products and solutions.

Commercial Segment: HBL’s commercial banking offers comprehensive solutions via

committed relationship managers to medium-sized companies with yearly revenues ranging from
PKR 1 billion to PKR 4 billion.

Retail Segment: Through its vast branch network and ATMs, HBL seeks to offer a quick,
simple, and convenient banking experience to individuals and smaller businesses with yearly
revenues of less than PKR 1 billion.

Each segment’s customers interact with HBL through the individualized services provided by
relationship managers. Numerous products, such as credit cards, deposit and savings accounts,
auto and home loans, and Islamic finance products, are advantageous to the retail market.
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2. What marketing communication budgets and mixes are used in banks?

Why? What is the role of branding at banks? How is this different from
product marketing?

Banks use marketing communication budgets and mixes, which frequently combine mass media
advertising and personal selling. Because of the nature of financial services and the demand for
individualized advice, relationship managers and personal selling in particular are essential. In
order to establish and preserve client relationships, these managers’ knowledge, ingenuity,
networking, and interpersonal abilities are essential.

Advertising in the mass media, such as on TV, print, and online platforms, encourages personal
selling by building the institution’s reputation, differentiation, and general brand awareness.
With branchless banking and financial inclusion receiving more attention these days, mass
media’s role is predicted to expand.

The function of branding in banks: Credibility and Trust:Financial transactions and the
handling of private data are both part of banking. Customers are drawn to and kept loyal to a
strong brand because it exudes credibility and trust.

Differentiation:Banks can set themselves apart in a crowded market with the aid of their brands.
It enables them to express their distinctive value propositions and forge a distinctive identity.

Consumer Loyalty: A strong brand encourages devoted consumers. Consumers are more
inclined to stick with a bank’s services when they can relate to its brand.

Distinctiveness from Product Marketing: Product Marketing concentrates on endorsing

particular financial goods and services by emphasizing their attributes and advantages.

Branding: aims to give the bank a generally favorable impression. It extends beyond specific
products to include the institution’s values, mission, and image.
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3. What is the branding strategy of HBL? What are they trying to achieve?

Building a strong and uplifting brand image that is consistent with the bank’s history, values, and
dedication to progressive, innovative, and customer-friendly banking is the main goal of HBL’s
branding strategy. Principal components of HBL’s branding approach consist of:

Heritage and History: HBL, the country’s first commercial bank established in 1947, uses its
illustrious past as a cornerstone of its brand. The brand narrative heavily relies on the Habib
family’s ownership of the bank up until 1974 and their success in bringing it back to its former
glory following privatization.

Progress and Innovation: HBL markets itself as a progressive and creative bank. This is
demonstrated by its extensive branch network, global reach, and programs like helping women
and other underprivileged groups become financially included.

Customer Recognition: HBL emphasizes its position as the greatest domestic bank, best retail
bank, best investment bank, and best bank for small business & agriculture in order to build
strong brand recognition through awards and recognition.

Global Presence: The bank’s presence across more than 25 countries is emphasized,
highlighting its status as a major player both in Pakistan and internationally.
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4. What are the pros and cons of sport sponsorships for a brank? Would all
brands benefit equally from such sponsorships?

PROS:

Positive Brand Association: Sports, and particularly popular and well-attended events such as
the HBL PSL, can foster positive associations with success, passion, and excitement.

Targeted Audience: Brands may choose to focus on particular demographics based on the sport.
Sponsoring cricket for HBL makes sense given the popularity of the game on the subcontinent
and its wide viewership.

Brand Recall: A brand’s memory is strengthened in the minds of consumers when it is linked to
a widely reported and observed event.

CONS:

High Costs: Major sports event sponsorship entails large financial commitments, which not all
brands can afford.

Risk of Controversies: Because sporting events can be erratic, unanticipated controversies or

unfavorable incidents connected to the event may have a detrimental effect on the brand.

Saturation in Highly Competitive Events: It may be difficult for brands operating in fiercely
competitive markets to make an impression when supporting events that draw large numbers of
sponsors.

Restricted Global Appeal: Other sports may not be as popular worldwide as cricket, despite the
sport’s broad appeal in some areas. This might reduce the sponsoring brand’s exposure abroad.
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Not Every Brand Gains the Same:Sponsoring sports teams would not benefit all brands in the
same way. The nature of the sport, target market, and brand identity are some of the variables
that affect effectiveness. Brands that have a close relationship to the sport and that fit in with
their target demographic and values stand to gain more. HBL’s PSL sponsorship, which
capitalizes on cricket’s broad appeal throughout the subcontinent, is a fitting fit with the bank’s
image as a trailblazing and inventive one.

5. Was the PSL sponsorship worthwhile for HBL? How did they leverage the
sponsorship?

Based on a number of metrics, HBL’s sponsorship of the PSL seems to have paid off. Significant
media coverage was produced by the sponsorship, which improved brand recognition and
awareness. The media value for HBL PSL 1, 2, and 3 was USD 38 million, USD 48 million, and
USD 112 million, according to Nielsen Sports. HBL’s portion of this publicity helped to
strengthen the perception of its brand.

Making the Most of the Sponsorship

Brand Visibility: With more than a month of national excitement surrounding the tournament,
the PSL sponsorship offered significant brand visibility.

Media Exposure: 97-98% of the total media value came from television, which accounted for
the majority of the media exposure. Significant value was produced by social media and online
streaming, which also had a big impact.

Effect on Product Usage: The marketing team made an effort to calculate how the investments
made by HBL PSL would affect the use of different products. Key performance indicators
(KPIs) were met or exceeded, and the results appeared promising.

Persistent Positive Impact: HBL’s internal tracking also revealed that key indicators were
continuing to perform well, indicating a sustained positive impact.
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6. If you were in place of Naveed, would you bid for PSL title sponsorship this
time? If yes, then how much would your bid amount be? Why?

If I were Naveed, I would consider a number of factors before bidding for the PSL title
sponsorship. From a strategic angle, consider this:

Motives for Bidding: Proven Track Record: HBL has benefited from previous PSL seasons in
terms of media attention, brand awareness, and possible influence on product consumption.

Positive Brand Associations: The subcontinent’s love for and widespread participation in
cricket makes it a good fit for HBL’s brand identity. Positive connotations may increase client
loyalty.

Continued Growth: The league may prove to be a wise investment if the trends indicate that its
popularity and media exposure will only increase.

Benchmarking: Examine recent agreements made in comparable sports leagues as a

benchmark.Make adjustments for variations in market size and prospective reach in relation to
leagues in more populous nations such as India.

Anticipated Competition: Compute the likelihood that other brands will compete with you and
incorporate that into your bid price. The PSL’s track record of success could draw in more
bidders and raise the bid amount.

Internal Budget Restrictions: Take into account internal budget restrictions as well as the new
leadership’s readiness to set aside funds for these sponsorships, particularly in light of the current
economic downturn.

Strategic Goals: Match the bid amount to the bank’s strategic goals. Analyze the possible return
on investment in terms of customer acquisition, brand equity, and product usage impact.
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HBL
HABIB BANK LTD
Case Study

By:
Muaaz Saeed Rana