The presentation is on the HBS case study on Charles Schwab's Talk To Chuck (TTC) Campaign.

1. Charles Schwab & Co. Talk To Chuck Campaign
Submitted by:
RAHUL CHANDA
160103106

2. U.S. FINANCIAL INDUSTRY OVERVIEW
 Compromised of three major sectors: Banking, Securities & Commodities, and Insurance
 Total client asset net worth of the industry is US$49 trillion
 Price competition intensive market due to evolution of Internet and Gramm-Leach-Bliley Act,1999
 Major players are:
 Full Commission Brokers: Merill Lynch, Ameritrade
 Discount Brokers: Charles Schwab & Co, TD Waterhouse and E*Trade
 Mutual Fund houses: Fidelity
 Shift in business of charging commissions on individual brokerages to service-based or asset
management fees

3. BRIEF HISTORY ON CHARLES SCHWAB & CO
1971:
Charles
Schwab
& Co is
founded
1975:
Becomes
the first
discount
self-
service
brokera
ge firm
1983:
Acquired
by Bank
of
America
1987:
Firm
bought
back
from
Bank of
America
1995:
one
million
accounts
reached
1997:
Offered
lowest
equity
trade
price
“King of
Online
Brokers”
1998:
2.2
million
accounts
reached
2004:
Broaden
business
through
Schwab
Investor
Services,
Schwab
Institutio
nal and
US Trust

4. SCHWAB’S BUSINESSES
Schwab Investor
Services
• Served to company’s
retail investors
Schwab Institutional
• Served independent fee-
based advisor firms
U.S. Trust
• Served affluent
individuals, families and
institutions

5. SCHWAB’S CLIENT SEGMENTATION
Investment
Attitudes:
Depends on
self-confidence
on asset
management
Life Stage:
Different aged
customers have
different
financial
objectives
Investment
Style:
Depends on
consumer’s
receptivity to
Hidden
Assets:
Depends on the
investable
of consumer
invested in
Schwab

6. PAIN POINTS
Client satisfaction gap
Excessive broker
commission on stock
trades
Overwhelming mutual
fund selection options
Stock recommendation-
ion based on opinion

7. REASONS FOR DEVELOPMENT OF TTC CAMPAIGN
 The firm performed poorly on Brand Asset
Valuator (BAV) study
 The brand scored low on differentiation since it
was no more the leading-edge discount broker
 Even brand relevance and esteem showed a
declining trend
 The company was out on customers
7
7.1
7.2
7.3
7.4
7.5
7.6
7.7
7.8
7.9
8
8.1
2000.5 2001 2001.5 2002 2002.5 2003 2003.5 2004 2004.5 2005 2005.5
Active Client Account(millions)

8. SCORES ON MOMENTUM & INNOVATION
11
73
16
MOMENTUM%
On the Way Up Company holding steady On the way down
10
67
23
INNOVATION%
More Innovative than ever
Innovation holding steady
Less Innovative than it used to be

9. MARKET DETAILS
• Target Market
• Mass Affluent
• 35 – 54 years old
• US$50,000 million to US$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 at least 1% of U.S. population
• 6 cities- Chicago, Denver, Houston, Washington D.C. ,
Phoenix & Dallas.
• No headquarters on any company
• Strong field sales presence
• Match able from BDI/CDI perspective
• Geographic dispersion
• Demographic composition
• Efficient and affordable Media

10. COPY STRATEGY
Consumer Benefit: Customers can directly connect to Chuck for any investment related advice at discounted brokers’ price
Reasons Why: Discount brokers offered little assistance beyond the execution of transaction, thereby creating confusion and dissent
Supporting Evidence: Chuck’s high level of involvement with field representatives to make sure they can sell Talk To Chuck well
Tone of Voice: Communicate Chuck’s core value and make field representatives build close relationship with the customers
Target: Target the 35-54 years age group with an investable amount of US$50000 to US$ 2 million and having a confident and financially concerned attitude

11. TTC TEST MARKET EFFECTIVENESS
• Test markets; Market received ads – Chicago, Denver, and Houston
• Control markets; Washington, Phoenix and Dallas
• All Test Markets received the same types of Marketing Mix and tests were conducted in both low sales and high sales returns
periods
• Observations:
• 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
• Schwab ranked in top 3 in all financial service companies
• Schwab reported a 5 % Reduction in Customer Attrition between April - September 2005

12. WOULD YOU SUPPORT SAEGER’S TTC BUDGET REQUEST FOR 2006
 Yes
 Reasons:
 YoY growth:
 6% on revenue
 153% on net income
 QoQ (IV) growth:
 11% on revenue
 253% on net income

13. THANK YOU