What circumstances motivated development of the Talk to Chuck campaign?

In the early 2000’s, competition started to intensify in the U.S. financial services industry among firms such as Charles Schwab, Merrill Lynch, Fidelity, Ameritrade and E*Trade. By 2004, Schwab’s net income had declined by 39% and they began to lose their reputation as the “leading-edge discount broker”. Furthermore, Schwab was losing its trademark as the ‘king of online brokers” because of its high equity trading prices in comparison to their competitors. This dip in profitability and market share was noted by company directors, and thought to be the result of the growing disconnect between Schwab and its retail customers.

Until 2004, Schwab had 6 different advertising campaign strategies that led to inefficiencies in cost and allocated resources. These advertising campaigns focused on a different product or service that Schwab offered to its investors, but due to the magnitude of this approach, their combined efforts became counterproductive. Chief Marketing Officer Becky Saeger, felt that “future growth and brand revitalization” were necessary to rebuilding the Schwab brand. A major focal point to the campaign was the need to differentiate itself from its competitors through approachability.

The advent of the internet was a contributing factor toward the diminishing rapport Schwab had with its clients. This avenue of trade instilled individual investors with a self-assured attitude. In addition, it provided convenient access to research real-time stock quotes, company news updates and analysts’ reports on numerous industries. The ease and flexibility of the internet allowed individual investor’s the capability to buy and sell securities online which reduced the need for the full-service brokers. Evaluate the company’s strategy behind the TTC campaign

Schwab’s