Charles Schwab - Talk to Chuck

Background

In 1975, Charles Schwab revolutionized the brokerage industry with a different business philosophy - allowing individual investors to manage their assets and making transactions free from high costs and conflicts of traditional brokerage firms. Schwab was able to lead the investment wave of 90Ð'ÐŽÐ'¦s by sticking to the customer centric principle and by adapting to the new technology faster.

However in the late 90Ð'ÐŽÐ'¦s and early 2000Ð'ÐŽÐ'¦s, Charles SchwabÐ'ÐŽÐ'¦s brand was caught in an increasingly competitive and commoditized category, stuck between deep discount brokers and full service firms. The competition from the internet discount brokers like Ameritrade, E*trade etc cut into the market share and transaction fees, the companyÐ'ÐŽÐ'¦s main source of income. In ChuckÐ'ÐŽÐ'¦s own words, Ð'ÐŽÐ'§we lost our connection with our clients and our market placeÐ'ÐŽÐ'Ё.

Talk to Chuck (TTC) Campaign

Schwab worked with the ad agency Euro RSCG to create the Talk to Chuck campaign. After a six month test in 2005 covering Chicago, Denver and Houston, the campaign was launched nationally on Sept, 2005. MarketÐ'ÐŽÐ'¦s reaction to the TTC campaign came quickly. Local press picked up the new campaign and Schwab was the talk of the town. The 4th quarter 2005 results showed an 11% increase in revenues and a 253% increase in net income over the fourth quarter of 2004.

Objectives of this Case Study

Ð'„Ð'« To evaluate the advertising efficiency of the TTC campaign

Ð'„Ð'« To discuss about the advertising objectives, message strategy, media selection and performance measures based on the test market results

Ð'„Ð'« To provide strategic marketing recommendations

Advertising Objectives of the Campaign

The campaign was aimed at regaining SchwabÐ'ÐŽÐ'¦s footing after major missteps after the dotcom bust and to regain the sense of momentum it once had with the mass affluent investor. It had a focus target - 35 to 54 year olds with between $50,000 and $2 million in investible assets Ð'ÐŽV which was just 8% of the US Population.

The objective of the campaign can be summed up in Mr. SchwabÐ'ÐŽÐ'¦s own words - Ð'ÐŽÐ'§Our promise to you that when you pick up the phone, go online or simply walk into a Schwab branch, you are speaking to someone who does the business the way I doÐ'ÐŽÐ'Ё.

Analysing Talk to Chuck ads

The first thing to notice about the Talk to Chuck advertisement was the medium Ð'ÐŽV animation. The ads were not exactly cartoons Ð'ÐŽV they were shot on film and then coloured over using the Rotoscopy technology from MIT Media Labs veteran Bob Sabiston (the same technology was used in the movie Ð'ÐŽÐ'§Waking LifeÐ'ÐŽÐ'Ё). The animated ads succeeded in focusing peopleÐ'ÐŽÐ'¦s attention to the conversations. Somehow the removal of the real-world details present in the live actorÐ'ÐŽÐ'¦s face and retention of the actual background set, forced consumers move past what they were seeing and shifted their attention to the dialogue. The characters discussed about commissions, trades and plans for the future.

The second surprising choice was the new slogan, Ð'ÐŽÐ'§Talk to ChuckÐ'ÐŽÐ'Ё Ð'ÐŽV not Charles, but Chuck. Even though Mr. Charles Schwab was not present in the ads, the campaign was centred on him. The Schwab campaign carried the theme Ð'ÐŽÐ'§Talk to ChuckÐ'ÐŽÐ'Ё which appeared as an eye catching graphic device in the form of a dialogue balloon as would be found in a cartoon strip. Some liked the use of the name Ð'ÐŽÐ'§ChuckÐ'ÐŽÐ'Ё;