HBOS Case Study

Introduction

The HBOS group of companies operates in the retail, business and corporate banking sectors and also deals with investments and insurance. Its portfolio includes a number of high-profile brands such as Clerical Medical and Sheila’s Wheels as well as The Halifax and the Bank of Scotland, whose merger is central to its structure. It operates a strategy of using multiple brands to target a range of markets more specifically than an umbrella brand would be able.

HBOS’s operations are mainly UK based, although the group has subsidiaries in Australia and Ireland: this contrasts with competitors such as Barclays and HSBC, which have a much wider global base. HBOS’s Halifax and Bank of Scotland brands have particularly strong geographical links with regions of the UK: this has the advantage of engendering considerable consumer loyalty through local connections, but may compromise future expansion in markets outside the UK, although HBOS’s branding expertise could enable it to develop appropriate brands and expand under their banners.