Ttc Page 1-3 Case Study

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It was january 2006, and Charles Schwab & Co., Inc.’s Chief Marketing Officer Becky Saeger and Charles Schwab (known to his employees as “Chuck”) were reviewing the nine-month results of the company’s new “Talk to Chuck” (TTC) corporate advertising campaign. Saeger and Chuck hoped the TTC campaign, which included a colorful series of television ads that used animated images of customers talking frankly about their investment needs, had revitalized the flagging financial services brand. Chuck had approved the campaign after coming out of retirement in Jully 2004 to reclaim his role as CEO of the $4,2 billion company he foundedin 1971. Two decades of rapid growth as a provider of quality financial services at reasonable prices had placed Charles Schwab & Co., Inc.’s (Schwab) at the forefont of the brokerage industry. But as competition intensified through the early 2000s, Schwab had found it harder to straddle the divide between full-service 2004, revenues were flat, and net income had declined by 39% in just 12 months. Upon his return as CEO, Chuck out both costs and prices to restore the brand’s perceived value among retail investors and hopefully improve market share. Though that corporate marketing budget was among the first to be cut, Saeger had argued that brand-building initiatives would have to play a role in driving future growth and brand revitalization. Six months into the TTC test market, she persuaded management to invest a further $30 million in the TTC campaign for the fourth quarter of 2005. She was confident that the campaign could take at least some credit for Schwab’s turnarround: a 6% increase in revenue from year-end 2004 to 2005 and a 153% increase in net income for the same period. As she reviewed the year-end results, Saeger believed the campaign was proving successful but wondered how much she could persuade the CEO and CFO to

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