Integrated Marketing Communication |
Charles Schwab & Co., Inc : The « Talk to Chuck » Advertising Campaign |
Group 5:Alka MishraElisabeth LespinetMegannePriyanka NarayananNaman Bhayana |
Charles Schwab & Co., Inc : The « Talk to Chuck » Advertising Campaign
Charles Schwab & Co is a financial company which offers brokerage products and services. In this case, we will see the new “Talk to Chuck” corporate advertising campaign launched by CEOCharles Schwab (also called Chuck) and Beck Saeger in January 2006. This campaign included a colorful series of television ads that used animated images of customers talking, about their investment needs. The goal was to improve ...view middle of the document...
In 1995 Schwab reached a milestone: the opening of its millionth customer account. In 1996 Schwab launched an online trading platform and the company had 2.2 million clients using its website to buy and sell securities.
Schwab offers a broad range of financial services through three business divisions: Schwab Investor Services, Schwab Institutional and U.S. trust.
In July 2004 the board took note of a deepening rift between the company and its retail customers, which was causing a decline in profitability and market share.
After that, Schwab introduced a cost-cutting program and the marketing budget was reduced. Saeger joined Schwab in April 2004. She understood her challenge of convincing to reinvest in brand-building campaign. Investors needed to trust the company. Schwab brand image needed revitalization. Traditionally they focused on direct marketing campaigns to sell specific products. They had six major direct marketing campaigns running simultaneously which were tripping over each other. They could collect data but they were not able to use it strategically.
But in order to target their customer Schwab used four approaches to segment its US retail consumers: Investment attitudes, life stage, investment style and hidden assets. But any Schwab client could be placed into one of the segments in each of the four classifications. A segmentation study in 2005 showed that Schwab’s client base was underweighted in the high-touch segment and over weighted in the self-assured segment. Schwab market researchers commissioned segmentation studies of sub segments to guide communications that might further deepen Schwab’s customer relationships and determined the messaging strategies appropriate to each.
After a survey in 2005, we knew the 5 reasons for moving assets out of Schwab:Needed money for major purchases (21%), Wanted to invest less in stocks (12%), Change in personal situation (11%), Wanted lower commissions and fees (9%), Wanted more investment advice (8%)
According a study the brand declined between 2002 and 2004, Schwab’s perceived differentiation declined. It looked less like a leading edge discount broker and more like a full service broker. To become differentiated, Schwab had to be seen as more innovative, progressive, trendy, up-to-date, social and approachable. The second component of the brand strength depended on trust in the brand and the level of perceived customer centricity.
So they decided to develop a new kind of advertising. In September 2004, Schwab invited four agencies to compete for its advertising. The advertising goal is to position the company as a company from which “mass –affluent” investors –those with $50,000 to $2 million in investable assets-could comfortably seek reasonably priced advice that could be the basis for a long term relationship. The...