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    Aditya Baijal - Charles Schwab & Co Inc

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    Rohit Jha
    Charles Schwab developed the "Talk to Chuck" advertising campaign to address declining market share and brand differentiation. The campaign personified Chuck Schwab through a test market using unconventional advertising techniques. The test market showed promising results in increased brand awareness, consideration for new accounts, and reduced customer attrition. Given the early success of the campaign in revitalizing the brand and improving key performance metrics, approving the requested budget increase for a national rollout in 2006 is supported.

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    Aditya Baijal - Charles Schwab & Co Inc

    Uploaded by

    Rohit Jha
    117 views11 pages
    Charles Schwab developed the "Talk to Chuck" advertising campaign to address declining market share and brand differentiation. The campaign personified Chuck Schwab through a test market using unconventional advertising techniques. The test market showed promising results in increased brand awareness, consideration for new accounts, and reduced customer attrition. Given the early success of the campaign in revitalizing the brand and improving key performance metrics, approving the requested budget increase for a national rollout in 2006 is supported.

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    Aditya Baijal_Charles Schwab & Co Inc

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    Charles Schwab developed the "Talk to Chuck" advertising campaign to address declining market share and brand differentiation. The campaign personified Chuck Schwab through a test market using unconventional advertising techniques. The test market showed promising results in increased brand awareness, consideration for new accounts, and reduced customer attrition. Given the early success of the campaign in revitalizing the brand and improving key performance metrics, approving the requested budget increase for a national rollout in 2006 is supported.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    117 views11 pages

    Aditya Baijal - Charles Schwab & Co Inc

    Uploaded by

    Rohit Jha
    Charles Schwab developed the "Talk to Chuck" advertising campaign to address declining market share and brand differentiation. The campaign personified Chuck Schwab through a test market using unconventional advertising techniques. The test market showed promising results in increased brand awareness, consideration for new accounts, and reduced customer attrition. Given the early success of the campaign in revitalizing the brand and improving key performance metrics, approving the requested budget increase for a national rollout in 2006 is supported.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Charles Schwab & Co

    Inc: The Talk to Chuck


    Advertising Campaign
    About the company
    Bank of America acquired Schwab & Co. at $57 million
    Schwab management bought Schwab back at $280 million
    The company went public
    Reached Milestone of Millionth customer account
    Online Trading Platform was launched
    2.2 million clients were using the website
    Equity trade price=$29.95 (industry low)
    Company was declared-King of Online Brokers
    Schwabs relative prices increased
    Investor services, Institutional, U.S. Trust
    7 million accounts, $1.2 trillion client base, $4.4 billion revenues, $725 million net income and 14,000 employees
    Target Market
    Mass Affluents
    35 54 years old
    $50,000 million to $2million investable asset
    8% of U.S. population
    20% of U.S. investors
    Target market is confident and financially concerned
    Test Market
    26 markets with atleast 1% of U.S. population
    6 cities- Chicago, Denver, Houston, Washington D.C. , Phoenix & Dallas.
    No headquarters on any company
    Strong field sales presence
    Matchable from BDI/CDI perspective
    Geographic dispersion
    Demographic composition
    Efficient and affordable Media
    Company Analysis
    What went wrong?
    Deepening rift between company and its retail customers, decline in profitability and market
    share
    The companys relative price has increased; no longer perceived as low-cost service provider
    Outcome of investigation:
    Skewed client base: High touch is underweight, self-assured overweight
    9% clients wanted lower commission fees
    Unfavorable brand asset value: Differentiation factor missing
    Paint points: excessive broker commission on stock trade, overwhelming mutual fund selection
    option, stock recommendation on the basis of opinion rather than fact
    Reasons for moving assets out of Schwab
    Need for money for major purchases 21%
    Wanted to invest less in stocks 12%
    Change in personal situation 11%
    Wanted lower commissions and fees 9%
    Wanted more investment advice 8%
    Way ahead strategies:
    Re-invest in central brand building campaign
    Position Schwab as company from which mass affluent investor 50,000$ to $2million
    investable assets could comfortably seek reasonable priced advice fro long-term relationship
    Emphasize approachability as brand equity
    Q.1 Circumstances motivated
    development of TTC campaign
    Companys cut into online brokerage market share and transaction fees
    Not providing good values to the clients company lost connection with customers
    Company failed to do indifferent from other brokers
    To increase revenue and market share
    To reduce customer attrition
    To increase competitiveness
    (Exhibit 7) To increase brand equity and loyalty BAV reveals that there was a decline in
    customer perceived differentiation
    Q.2 Evaluate company strategy behind the
    TTC campaign
    'Personifying' Chuck, The Company
    Used all marketing touch points billboards, print ads, direct mail, online, sales training and television commercials
    Used rotoscoping technique made actors animated and approachable
    Scripted the actors to talk candidly about their relationships and paint points e.g. wisdom of paying high commission,
    how to deal with low performing stocks
    Approachability was the brand equity
    To revitalize brand image to reinstate differentiation and regain position as the premier discount brokerage provider
    via:
    Renewing Brand Awareness, Brand Equity and Loyalty Growth Objectives Targeting mass affluence aged 35-54
    To Launch an Advertising Campaign - TTC: using non-traditional forms of Marketing, such as the Rotoscope technique in
    their TV ads:
    Use of traditional forms of advertising such as billboard and print ads in more easily communicable formats
    Non-traditional forms such as print ads in elevator trollies and on coffee sleeves
    Q.3 How effective was the TTC test
    market? Evaluate the test results.
    Test markets; Market received ads Chicago, Denver, and Houston

    Control markets; Washington, Phoenix and Dallas

    Consideration to open new accounts was majorly observed in Denver

    Popularity and value for money perception are becoming more positive in Chicago

    Brand awareness, correct offers and brand momentum was gained in Houston

    Drastic increase in ad recallers for awareness, purchase consideration and company hearing a lot about.

    Schwab ranked in top 3 in all financial service companies

    The TTC Test Market had controls which adds credibitility

    Tested markets where there wasnt a strong/solid customer base

    Conducting the Test Market in both low sales and high sales returns periods

    All Test Markets received the same types of Marketing Mix

    Exhibit 1: Return On Equity ratio increased by 16%

    Schwab reported a 5 % Reduction in Customer Attrition between April - September 2005

    Exhibit 9a, 9b, 11


    Q.4 Would you support Saegers TTC
    budget request for 2006
    2000 sales rep instead of competitors 14000

    11% increase in new accounts

    105% increase in net new assets

    Growing popularity, and increase in momentum

    Curtails attrition in 6 months by 5%

    Effectively communicated Chuck's core values

    Favourable Test Market results

    Call center customer contacts and field sales activity were increased

    Investment in a successful Advertising Campaign would continue to Improve and Maintain Brand equity

    The benefits that could result from advertising or marketing investments

    Marketing indices are pointed in the right direction (Exhibit 9a, 9b)

    Thus to continue with the same momentum and high potential in US market ads investment amount should be approved

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