Charles Schwab
Charles Schwab & Co., Inc.: The “Talk to Chuck” Advertising Campaign
1. What circumstances motivated development of the TTC campaign?
The Charles Schwab & Company was founded shortly after the U.S. SEC deregulated brokerage commissions in 1975. The company differentiated itself at the time by becoming a self-service brokerage house that put the power in investor’s hands to make critical decisions while paying up to 75% less than traditional brokerage firms. This established the brand as a trend setter, which it further cemented by becoming a technological leader in 1996 when it introduced an online trading platform. Schwab then began to further cut prices and offer financial services through three different market segments: retail storefront, fee-based advisor firms, and affluent customers. Schwab had built one of the most successful brokerage firms by sticking to his core competencies and offering a value to his customers while keeping fees down. The brand seemed untouchable, but as with any business enterprise the competition was fast on their heels.
The creation of “Talk to Chuck” campaign was motivated through a decline in the brand caused by three different factors: technology, competition, and mismanagement. During the dot com boom of the late 90’s technology was at the forefront of business growth. For the first time personal computers were financially attainable to the general public. Coupled with the widespread availability of fast networking systems, there was a relatively inexpensive entry point for competitors into the marketplace. Following the commoditization of basic brokerage trades due to the passing of the Gramm-Leach-Bliley Act, Schwab began losing its edge as the low cost leader of trades. Companies such as Ameritrade, E*Trade, and TD Waterhouse undercut Schwab’s low prices becoming the cost cutters of the segment. Schwab countered by offering financial services to differentiate themselves from that segment. In doing so
1. What circumstances motivated development of the TTC campaign?
The Charles Schwab & Company was founded shortly after the U.S. SEC deregulated brokerage commissions in 1975. The company differentiated itself at the time by becoming a self-service brokerage house that put the power in investor’s hands to make critical decisions while paying up to 75% less than traditional brokerage firms. This established the brand as a trend setter, which it further cemented by becoming a technological leader in 1996 when it introduced an online trading platform. Schwab then began to further cut prices and offer financial services through three different market segments: retail storefront, fee-based advisor firms, and affluent customers. Schwab had built one of the most successful brokerage firms by sticking to his core competencies and offering a value to his customers while keeping fees down. The brand seemed untouchable, but as with any business enterprise the competition was fast on their heels.
The creation of “Talk to Chuck” campaign was motivated through a decline in the brand caused by three different factors: technology, competition, and mismanagement. During the dot com boom of the late 90’s technology was at the forefront of business growth. For the first time personal computers were financially attainable to the general public. Coupled with the widespread availability of fast networking systems, there was a relatively inexpensive entry point for competitors into the marketplace. Following the commoditization of basic brokerage trades due to the passing of the Gramm-Leach-Bliley Act, Schwab began losing its edge as the low cost leader of trades. Companies such as Ameritrade, E*Trade, and TD Waterhouse undercut Schwab’s low prices becoming the cost cutters of the segment. Schwab countered by offering financial services to differentiate themselves from that segment. In doing so