HSBC Hong Kong – Global Advertising Strategy; Local Promotion Focus LO1


HSBCHong Kong – Global Advertising Strategy Local Promotion Focus



Inits advertising strategy, HSBC usually operates under one logo andbrand name all over the globe. HSBC builds long-lasting relationshipswith its customers and connects them to opportunities, and help themin fulfilling their hopes as well as dreams in the realization oftheir dreams (HSBC, 2015). The organization focuses on airportadvertising, which helps in bringing the organization’s globalnetwork to life and depicts the power of international connections.In 2015, the organization has launched a fresh advertising campaign,where it will appear on jetbridges in airports the campaign isintended to encourage people think about their journey in life. Thiswill show the organization’s support in helping people along theirway. In its advertisement campaign, the organization has developed aseries of posters, where each is made up of three images that tell ashort story. These posters explore varied types of ambition.Initially, the organization was using top down approach ofcommunication however, the organization has exchanged this approachto the listening approach. In this approach, the employee voice isallowed to rise to the surface and every employee has a seat at thetop table since they influence discussion at the Group ManagementBoard. During the implementation, the actions reached by themanagement board are followed. It is critical to ensure that thecommunication model that the company chooses matches its needs. Sincethe management offers feedback to employees, the followingcommunication model can be proposed for the organization in itsadvertisement



Employees Managers

GroupManagement Board Senior Managers


Promotionalactivities are linked to sales, distribution as well as focusing onmarkets and groups. The different ways of actions can be applied forpromotion such as publicity, sponsorships, staff structuring andadvertising. The organizations of advertising and promotionalindustry are usually formed not for exchange of ideas and workingtogether, but also play a role in enhancing reputation (Close et al.,2014). The advertising and promotions industry is organized intodifferent agencies these advertising agencies include generalizeadvertising organizations, specialized advertising organizations,interactive advertising organizations, and in-house advertisingorganizations. Generalized advertising organizations entailorganizations that are used for the normal advertising tasks such asmarketing of a brand and designing of a logo. Specialized advertisingorganizations are usually selected for advertising greater forms ofadvertising such as financial, entertainment, recruitment, andindustrial advertising among others (Close et al., 2014). On theother hand, interactive advertising organizations help in handling TVand internet advertising. These help in bringing a vast number ofcustomers. Alternatively, in-house advertising organizations take therole of completing advertisements from individual to individualbusiness. In-house agencies are critical to a business because theyhelp in saving resources of a business and offer the business greatercontrol over the whole process. The promotional agencies includesales promotion, design firms, E-commerce, and public relation firms(Close et al., 2014). The structure of the advertising andpromotional industry is depicted in the illustration that follows.


InHong Kong, there is no single basic legislation that regulatesadvertising. However, there are different pieces of legislation thathave a relation to advertising and promotion unfair tradingregulations (Shaver&amp An, 2014). The legislation does not allow false tradedescription of commodities and restricts advertisements that falselydescribe commodities or that are likely to mislead. The legislationalso gives the courts the power of giving relief in relation tocontracts that are found to be unconscionable. The local broadcastingauthority offers codes of conduct which provides guidelines forpromotion on radio and television (Shaver&amp An, 2014). According to the legislation, it is an offense toprovide false or any misleading information concerning a product toconsumers or to supply goods to consumers and businesses to whichfalse or misleading information concerning the product has beenattached. The information may include promotional sales, discounts,offers of free samples or gifts, and product warranties. Therefore,in the promotion of a commodity, unfair trade conducts have to beavoided. The Sale of Goods Act helps in providing differentdefinitions of commodities offered for sale and related terms ofsale, which are critical in guiding promotion. In promoting theirproducts, advertisers in Hong Kong have to provide the rightinformation concerning the product which they feel that consumers orbusinesses purchasing their products need to know accuracy in theinformation has to be maintained always.


Thecurrent trends in advertising and promotions are chieflymedia-oriented (Makepeace &amp Hewett, 2009). Most of theadvertisements and promotions are now focusing on two basicaccomplishments, which include obtaining new clients and keeping oldclients happy with the commodities (Lindgren, 2011). The InformationCommunication Technology (ICT) constitutes a significant part tobusinesses. In marketing, ICT is utilized in generating audienceawareness or experience. The media in ICT entails the internet,mobile phones, and television. The ICT has made revolutionary changesand trends in the marketing of goods (Lindgren, 2011). For instance,market expansion through the internet and social media has allowedfaster communication, as well as cost and time effective promotions.The rapid growth in ICT has also enabled companies to be in aposition to advertise globally, which has resulted in companiesexploring international opportunities (Makepeace &amp Hewett, 2009).HSBC has been in a position to explore the international market dueto the growth of the ICT.



InHong Kong, advertisement is significant due to the crucial role thatit plays. Advertisement has been considered as a key method thatbusinesses use in communicating to its target audience. Advertisementassists in informing people about available products and varieduseful products. The chief objectives of advertising comprises oftrial, brand switch, continuity and switching back (Webb, 2015).Advertising is of immense importance to the business, producers,customers, traders, and advertising agencies. Advertising aidscustomers in collecting information, selecting appropriate productsthat have the right quality and price. On the side of traders andproducers, advertising helps in increasing sales and understandingthe plan of competitors, which is critical for competency.Advertisement tends to benefit all those who are engaged in theprocess. In Hong Kong, advertising is deemed to play a significantrole of showing the fashion ability of a product to the customers.Furthermore, advertising helps in boosting the credibility of aproduct. A disadvantage of advertising is that it makes anorganization or business to spend some extra cost in ensuring thatthe process is successful. Nevertheless, this cost is exceeded by thebenefits that accrue from advertising.


Brandingentails the process of creating a unique name as well as an image fora product in the mind of a consumer. This practice is chieflyattained through having advertisement campaigns that tend to have aconsistent theme (Clifton et al., 2003). A key objective of thebranding process is to ensure that the product as well the businessselling the product establishes a significant and differentiatedpresence in the market with the sole purpose of attracting andretaining loyal customers. Through branding, a business is likely tocement the user loyalty of the products that business offers tocustomers. In order to strengthen HBSC Hong Kong, establishment of abrand is exceedingly critical. In establishing its brand, theorganization should consider rebranding its business in a manner thatwill attract new customers to the business and retain the oldcustomers for instance, the organization may consider strengtheningits business in Hong Kong by introducing a product that is unique inthe region. Such a move would attract customers since they willidentify with the organization as the only unique company that canoffer the product. This uniqueness is critical in strengthening theorganization in Hong Kong. Also in strengthening the organization inHong Kong, the organization may opt to have a new brand name, whichwill help it in realizing the objective of attracting new customers.


Creativeadvertising is important and deserves one to have good knowledge ofwriting the words as well as slogans that would fit well in theadvertisements (Burtenshaw et al., 2011). Thus, in producingeffective advertisements, it is critical for the individuals involvedin the design of advertisement to have creative and expressivetalents. Creative aspects of advertising for HSBC Hong Kong wouldneed to have an excellent brand strategy, Ad-copy, and a good layout(Pricken et al., 2005). The brand strategy would entail what, how,when, and where the organization intends to interact and deliver thebrand messages. Also, in the brand strategy of HSBC HK, it iscritical to incorporate the distribution channels that theorganization will use in communicating its brand to the targetaudience. Ad copy entails the central script of the advertisement,which is clickable. The script from the ad copy is usually the secondand third lines of the advertisement presented to the internet searchengine or other website (Burtenshaw et al., 2011). This is anindication that ICT is critical in the creative advertising strategyof the organization. On the other hand, layout is the other criticalaspect to consider in the development of a creative advertisementstrategy of HBSC HK. The layout would indicate the organization ofcolor, script, graphics, objects, size, and the message to beincorporated in the advertisements.


Inworking with BBC as the advertising agency, the organization wouldneed to first of all find out whether BBC would be in a position tooffer the best and valuable advertisements. Since communicating themessage is the most critical aspect of advertising, it is importantto ensure that the agency will communicate the message as required.After ascertaining this, the organization would then approach theagency in order to inform the agency of its intention to use itsservices in advertising its products it is here that the agencywould provide the price that it would charge the organization for theuse of its services. In this case, the organization will need tofollow four basic rules, which include setting clear goals, coveringits budget bases, staying in contact, and establishment of specifictimelines. It is after this process that the agency would offer thepreferred method of payment for its services that the organizationwould need to follow. The agency would follow the agreement put inplace amid it and the organization in running the advertisements theagency will be required to run the advertisements for the stipulatedperiod that the agency offers.


Anintegrated promotional strategy for HSBC is exceedingly crucial inensuring that the organization successfully achieves its objectivesof attracting new clients and maintaining old ones. The organizationmay consider sales promotion as one of its strategies. In this case,the organization would be involved in sales campaigns, where it mayphysically meet its old and prospective customers. Apart from meetingits customers physically, the organization may also opt to use agentsin reaching out to the customers. Another promotional strategy thatthe organization may consider entails loyalty schemes. Theorganization may consider providing loyalty schemes to its bestcustomers in an attempt to retain them as it develops its operationsin Hong Kong for example, the organization may provide rewards tothe customers. Sponsorship and direct marketing entails anotherstrategy that the organization can apply. The organization may createsponsorship programs, where it would give back to the community bysupporting certain initiatives. Also, the organization can directlymarket its organization on the media. Other strategies may includepackaging, merchandising, product placement, and public relations.Packaging will have the effect of retaining old customers as well asattracting new ones since it works towards satisfying customers.Through merchandising, the organization can promote its productsthrough having retail presentation of its products. Product placemententails a situation where the organization may consider integratingits brand in form of audio-visual communication within a certainprogram for the purpose of marketing the organization. On the otherhand, having a good relation with customers can help the organizationretain its clients.


Theorganization may use other below-the-line promotion strategies suchas exhibitions, word of mouth, personal selling, and use of new mediain promoting the organization. HSBC may use exhibitions in trying towin new customers in Hong Kong. In this case, the organization mayconsider holding different showcases where it can appeal to customersto be using its products (Gelder &amp Woodcock, 2003). Theorganization can consider opening up several exhibition centers inHong Kong, where it can be in a position to sell its brand to thepeople. Also, the organization may consider the use word of mouth ininforming and persuading customers in Hong Kong to be part of theorganization. For instance, the word of mouth approach may beeffective where the employees of the organization spread the word totheir friends, making the presence of the organization known in HongKong. Personal selling is another way where the organization can hireindividuals that can sell the organization’s brand to customers(Paley, 2006). These individuals can act on behalf of theorganization in presenting information concerning the products andservices that the organization intends to offer to the customers.Besides, the use of new media such as Facebook and Twitter may assistthe organization in establishing its Hong Kong. The social mediaplatforms such as the Facebook can help the organization introduceits product offer as well as the services it intends to offer in HongKong. Through the social media, the organization can reach a vastnumber of people.



Budgetingis crucial since it helps in using resources efficiently. HSBC HK canprepare a sales promotions budget for its operations in order to havea good projection of the resources that would be utilized in doingthe sales promotion. In this case, different methods for preparingthe budget can be used however, operating budget approach stands asthe most appropriate for the preparation of a sales relatedpromotions budget (Mikesell, 2014). When preparing the budget usingthe operating budget approach, different steps would be used in thepreparation process. The initial step of the preparation of thebudget using this approach, the total approximate cost for thepromotion is calculated. In the second step, the costing is completedand transactions made amid the organization and the advertisingagency media costs should be evaluated and included in this step.After this step, the final step comprises of following the firststep. In this case, all the costing throughout the past steps shouldbe compared to the planned budget. In case the costing emerges to bemore than the planned budget, the budget should be reconsidered onthe other hand, in case the costing is lower than or equal to theplanned budget, then the budget should be implemented (Mikesell,2014).


Apromotional plan would summarize the promotional tactics and toolsthat HSBC HK would use in accomplishing its marketing objectives. Thefollowing is an outline of a promotional plan for the organization

Situationanalysis:in the promotional plan, the organization will need to have ananalysis of the situation leading to the promotion and whether it isviable. In this case, HSBC moving to Hong Kong is a good move giventhat Hong Kong is doing well economically and has a lot of potentialcustomers given the high population in the region (McGiffert &ampTang, 2008).

Communicationgoals:one of the communication goals will be to make old customersconcerning the intention of the organization so as to retain them.The other communication goal will be to inform potential customers ofthe organization’s presence in Hong Kong and persuade them tobecome part of the organization.

Targetaudience:in this case, the target audience will be old clients of theorganization as well as new clients that the organization expectsfrom Hong Kong.

Strategyand Tactics:the organization will need to develop an effective advertisingstrategy in order to have successful promotion. In this case, theorganization should consider using integrated advertising strategy.This will ensure that the organization communicates broadly andeffectively to the target audience.

MediaSelection:the organization will consider using different media in itspromotion. This will ensure that in case the target customers do notuse a certain media, they can be reached through another media.

Scheduling:the promotion will be carried regularly prior to the organizationestablishing its presence in Hong Kong in this case, three to sixmonths will be okay to carry out the promotion.

BudgetAllocation:budget for the promotion should be prepared early. The allocationshould be sufficient to carry out the promotion.

EvaluationMeasures:evaluation is exceedingly critical since it helps in predicting theend results. In this case, the success of the promotion will be basedon the feedbacks that the organization will receive from the targetaudience. Revenues realized by the HSBC after the promotion can alsobe used as an evaluation measure.

Tools:the promotion tools that the organization will use includeadvertising, direct marketing, public relations, and sales promotion.


Integratingof promotional techniques entails the use or combining of differentpromotion techniques (Clow &amp Baack, 2004). In its promotionalstrategy, HSBC HK can consider using advertising, direct marketing,public relations, and sales promotion. Through the use of all thesemethods, it will be effective to reach to the target audience (Engel,2000). The organization has to ensure that it effectively uses thesemethods. The methods that the organization decides to use have to bein a position to work together. This means that the organization hasto choose promotional methods that can combine well. In positioningpromotional strategies, the organization should focus on its targetaudience the audience will determine the effectiveness of thepromotional strategies before using them. However, a barrier tointegrate all the promotional tools may exist due to the resourcesrequired in the use of all the tools.


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