| The objective of this case study is to observe the marketing strategy used for HSBC credit card installment plan product, and to understand what the suitable strategy is to promote this product. In this study, the writer has observed the obstacle and problem occurred while trying to achieve the target agreed. Before the product was launched, the Bank determined target which is 10% of the total card spending contributed by the card installment plan product, 5% of the total card receivables contributed by the card installment plan product, and also few additional targets such as the credit card installment plan product which could increase the utilization rate, decrease of the attrition rate, decrease of the delinquency rate, change of the credit card customer payment behavior composition. The writer compares between the target and achievement of this product and has conducted an analysis through the collection of HSBC’s internal data, such as company condition, the company’s strengths and weaknesses, customer profiles and the opportunities and threats from other competitors in the market, as well as the result of previous survey by ACNielsen regarding installment product awareness. The result indicates that HSBC credit card installment product has not achieved its target, however the customers using this product have caused the increment of card utilization, decreasing in delinquency rate, decreasing in attrition rate and change of their payment behavior from transactor into revolver, which will bring benefit to the Bank. The writer believes because of this product is still in the introduction stage, therefore it still has the opportunity to grow. The writer suggestions are as follows: increase the product communication to the customer, increase number of merchants and improve service level of this product. These reasons should be seen as an opportunity for the Bank to enhance the product and offer flexibility to the customer. |