Schwab in 'prudent' drive for customers

<p>Despite soft market conditions, Charles Schwab has stepped up its </p><p>customer acquisition drive, with a trio of benefits that play up its </p><p>role in revolutionising stock trading for the ordinary customer. </p><p><BR><BR> </p><p>The company's "Investor Revolution" campaign offers a low permanent flat </p><p>commission rate of 0.2 per cent for investors opening a Hong Kong stock </p><p>account before March 31, a "trade-one-get-one-free" offer before June, </p><p>and an investor protection insurance of HKdollars 7.8 million (about </p><p>USdollars 1 million) for every local account. </p><p><BR><BR> </p><p>Schwab's marketing director, Gary Leung, said the broker was looking to </p><p>increase its customer base by 20 per cent. </p><p><BR><BR> </p><p>"It's not a very aggressive target. We are not going for a huge mass </p><p>base without reasonable revenue returns or capacity to support this," </p><p>said Mr Leung. </p><p><BR><BR> </p><p>"We want to expand, but in a prudent manner." </p><p><BR><BR> </p><p>The online brokerage market has been plagued by a fierce price war in </p><p>the past few months. Last year, the Taiwanese-funded KGI group waived </p><p>commissions for six months. </p><p><BR><BR> </p><p>Schwab's flat commission rate - said to be "low but not the lowest" - is </p><p>expected to turn up the heat in the marketplace. </p><p><BR><BR> </p><p>"It is definitely a market share grabbing situation right now," said one </p><p>observer, adding that the online trading market was wide open, with no </p><p>dominant market leader. </p><p><BR><BR> </p><p>"Right now, no one has a major market share. You want to go grab market </p><p>share because five years down the road you will be sitting on that as a </p><p>fairly stable share of the pie." </p><p><BR><BR> </p><p>Schwab's triple offer is being promoted through a series of consecutive </p><p>half and full-page print ads in English and Chinese newspapers </p><p>respectively. </p><p><BR><BR> </p><p>Designed by Schwab's marketing agency Motiv8, one execution features a </p><p>female fitness enthusiast fitted with boxing gloves "punching" home the </p><p>brokerage's offers. </p><p><BR><BR> </p><p>Said Motiv8 art director Morrissey Cheung: "We've stuck close to the </p><p>style and flavour of the overall campaign, which really talks to the </p><p>affluent investor-segment. Prelaunch research has shown this offer to be </p><p>really attractive - so we've tried to communicate this 'knock-out' </p><p>element in the ads." </p><p><BR><BR> </p><p>The print campaign is supported by radio, outdoor, interactive and a </p><p>direct marketing drive, cross-selling products to existing </p><p>customers. </p><p><BR><BR> </p>