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Talk To Chuck

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on 7 November 2013

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Transcript of Talk To Chuck

Talk To Chuck
A Declining Brand
2004 - Landor Associates hired to conduct a Brand Asset Valuator (BAV) study.
BAV - examines a brand's Differentiation, Relevance, Esteem and Knowledge.
Study concluded: Differentiation declined between '02-'04
Time for a Change

Reviewing The Results
Schwab's market research compared consumer attitudes about Schwab and its competitors before and after the advertising test periods, in the test and control markets.
Case Study 7
Strategy for 2006
Strong enough to warrant the $200 million marketing budget being proposed for 2006?
Extended Campaign nationwide.
Net new assets increase by 10%
Boosted marketing budget by $35 million
2005 revealed - 6% increase in revenues over 2004 and a 153% increase in net income.
"Talk To Chuck"
Designing the TTC Test
All of 2004 brand budget was spent on testing the Talk To Chuck campaign.
2005 - $16M budget
Main Priority - acquire new customers in order to meet their growth objectives
Measuring Campaign's Success - tracking new net assets and number of new households investing with Schwab.
Target "mass affluents" - 35-to 54-year-olds with between $50k and $2M in investable assets
Charles Schwab & Co.
$341 million cost reductions
15% cut
2004-Becky Saeger CMO
On most measures, consumers rated Schwab more favorably in the test markets as the campaign progressed.
Industry Background

Manages assets
3 Major Sectors: banking, securities/commodities and insurance
Managed $49 trillion in client assets
1790 - Philadelphia Stock Market
1990s- Modern retail brokerage
1975 - Deregulation by U.S. SEC
1st discount service brokerage
Allowed investors to "self-serve"
Company grew very quickly
Acquired by B of A for $57 M
4 years later, leveraged buyback
1997- "King of Online Brokers"

2004 - 3 Business Divisions
Schwab Investor Services
Schwab Institutional
US Trust
Designing the TTC Test

Increase in new accounts
and net new assests
Washington, D.C.
$4.2 billion company
Reasonably priced, quality financial services
2004 revenues declined by 39% in 12 months
Charles Schwab came out of retirement
Recieved the same mix of local tv ads, newspaper and print ads, billboards and radio.
Pricing brokerage services too high
Restricting consumer access to research and information
No advertising
6 major direct marketing campaigns at same time
Client Segmentation
Investment attitudes
Life Stage
Invesment Style
Hidden Assets
Measuring Loyalty
Net new assets - assets withdrawn
If company share of new net asset growth < industry share, market share declines
Curtailing attrition
5%reduction in attrition
Call center customer contacts and field sales activities both increased
35% of clients leaving for lower commissions and fees
Test ran from April 2005 through September 2005.
Full transcript