Executing a Global Strategy, Locally: Lessons from The World’s Local Bank

If you are an international traveler, you’ve probably noticed HSBC’s advertising in jet bridges, baggage claim areas, and pretty much everywhere else in over 45 airports around the world. What makes this global campaign truly distinctive is the brilliant implementation of a “glocalized” strategy–keeping a consistent execution across multiple countries, while maintaining a local flavor in its message at each airport.

Images of Macchu Picchu in Peru, soccer in Spain, renaissance sculptures in Italy, beauty queens in Venezuela,  French delicacies in Paris, chili peppers in Mexico, and Mehndi art in India welcome travelers from around the world, with an colorful take on local culture and values.

HSBC’s campaign exemplifies how marketing in the financial services sector has come a long way: from assuming that banks are beyond branding to a phase where banks are using branding strategically (think Bank of America, TD Bank, Chase, and most recently the Bank of New Zealand). The economic climate in recent years has taught financial institutions that strong brand equity is becoming more important than ever before.

Although the company is headquartered in the UK, it has a strong Asian heritage, and in the past several years it has taken up a strategy of global retail and wealth management. Branding plays an important role here: HSBC continues to unify how it presents its brand across markets, while maintaining a message of local specialization and specific cultural understanding. This is likely to continue as part of the bank’s strategy to reinforce its business in emerging markets.

In the words of Maitri Kumar, Head of Marketing, HSBC India:

HSBC showed immense strength when other brands in the banking arena, across the globe, faced a real hard time to keep up their image during the global meltdown in 2008. And we believe our slogan, ‘The world’s local bank,’ played a very critical role in the same. HSBC’s global expertise coupled with local relevance finds expression in that tagline.

The driving focus of HSBC’s communications is backed by the strong consumer insight that a large, global bank is intimidating for most consumers, who associate the footprint and size of the bank with a negative experience and condescending treatment.

The bank’s conceptual response to this insight is a classic example of “glocalizing” — a concept that even many consumer goods companies struggle to grasp. Through its “The World’s Local Bank” advertising campaign, HSBC  strives to set itself apart as a bank that, while having many global connections, is still flexible enough to care for the needs of local customers in the ways they prefer.

HSBC’s executes its strategy not only through marketing and advertising, but also by offering a customer experience that lives up to the brand expectation. An example of the brand in action is a recently launched product, HSBC Premier, that allows customers to open accounts in 37 countries and get assistance regardless of location.

Global brands that find value in appealing to local customers can learn a lesson from this glocalized execution. HSBC starts with a strong brand positioning that cascades into local markets through tweaks in communication. It then backs up the promise of the “World’s Local Bank” with products and features that leverage its international footprint matched with a familiar and approachable customer experience. Sounds like a winning formula.

BY MELISSA RENTERIA

Photo by Ewan McIntosh

Encounters in the Global Experience Economy: Matsuhisa Athens

The two blonde hostesses are Greek and well practiced in “Irasshaimase!” I am having a seat at the sushi counter. The sushi chef is Japanese by way of California.

I order an espresso martini. The chef recommends the local sea bass and also the local sea urchin—from Crete, from a special supplier which he personally selected, all natural, without any preservatives, and thus better than the one from Japan. I am asking for both the bass and the urchin as sushi, and also order an eel-and-cucumber roll.

The sushi chef tells me that his daughter just graduated from UC Berkeley. She now lives in LA. He came to Greece two years ago. Not a great time for working at a trendy Japanese restaurant right now. But he says most of the customers are locals, and business is better this year than last.

I am reading excerpts from a new book in German, “Deutschboden.” The section I am reading is about a “Super Kleinstadt,” Oberhavel in Brandenburg, where life still seems local. Where people at the Stammtisch talk about third league soccer and eat Schnitzel and Currywurst.

My main dish tonight is one of those signature “Nobu” dishes: Chilean sea bass with jalapeno sauce. We all know, from the web, that Mr. Matsuhisa grew up in South America where he learned to mix cuisines … I am wondering if this is the endangered species fish for which he got bad press online.

The waitress forgot my water order and when it finally arrives, it is the sushi-chef who comes around the counter to pour me the water. A Japanese way of apologizing, I recognize. He introduces his sous-chef. “Where is he from?”, I ask. “From a special place,” he answers, “Blue Island, Quingdao.” Thus, we converse on Quingdao beer, and Löwenbräu, and Super Dryyyyyyyy.

I am wondering how to finish the meal tonight. Earlier we had talked about how the Japanese drink a lot of coffee. I decide that blueberry and chocolate mochi ice cream may turn out to be a great complement to the espresso martini.

When I exit the restaurant and walk past the bungalows of the resort back to my room, looking up to the trees and the starry night, I feel as if I am in Bali.

BY SCHMITT

This post originally posted by SCHMITT on the MeetSCHMITT blog at: http://meetschmitt.typepad.com