PRESENTED BY

KEZIA FERNANDES MUDIT CHATURVEDI ROSHAN ROY SARAT GOPINATH EDWIN SNEHAM

2010142 2010211 2010103 2010106 2010135

NAME AND IDENTITY CHANGES:

1968: McCoy family created a bank holding company in the state of Ohio known as First Banc Group of Ohio, Inc. Changed to Banc One Corporation

Because acquisitions were targeted outside the state of Ohio y Holding co. was non-secured and non-insured, thus Ohio Law prohibited using the term bank with k
y

The City National Bank & Trust Company renamed as Bank One
y

To unify the acquired banks identities within the holding company

Companys holdings were expanded further west to Arizona, Texas, etc.

y y

Strategy called the Uncommon Partnership was used Banc One would leave the newly acquired banks management in place and give it considerable autonomy, while providing it with the companys extensive product set and marketing expertise

National Partnership : the bank wanted to build on an obligation to adopt common goals & objectives to ensure standardization and centralization
They aspired to be the premier national retailer of financial services y for this they needed input from all key stakeholders
y

Merger with First Chicago NBD which was positioned as a commercial bank
Bank One was more action-oriented & aggressive while First Chicago NBD was more conservative and study- oriented. y Adopted the monolithic architecture; all business units operating under the Bank One name y Developed the Brand Toolkit & gave it to all employees
y

BANK BRANDS

Spending time, energy & resources on developing a strong bank brand is still relevant Growing number of private sector banks and current level playing field for international banks make it necessary for existing banks to brand themselves better Spending on branding the bank should be closely tied to the future strategies for the bank The amount of effort (including financial resources) for branding should take into account possible mergers/acquisitions in the future

MERGERS & ACQUISITIONS

Acquisitions Diversification of brand portfolios Strong brand ensures better exposure in the mind of the consumer Mergers Strong brand name ensures higher bargaining power in deciding which name to choose after the merger Branding forms a key decision making element in deciding whether to change the name or just endorse the other parties involved

BANKING SCENARIO IN INDIA

Type of banks Public sector banks Private sector banks Co-operative banks Regional/rural banks Foreign banks Number 21 19 30 95 12 (8 more planning to enter in 2011)

Increasing number of new players coming into the market Over half the population is under 25 years of age , so it makes it more important for a bank to be appealing to the youth. With many new players coming in, they are looking to acquiring regional banks and at the same time , regional banks and public sector banks are spending time and resources on rebranding themselves so as to be more appealing to the youth and to be more competitive to the private sector brands and the international players coming in.

BRAND BUILDING FOR A BANK

Service-based brands, as opposed to product based brands such as washing powder or a TV involve a multiple interface with the consumer Consumer experiences the brand at various levels In the Banking Sector very few brands have managed to create a complete set of perceptions in peoples minds

What does SBI offer which is different from Bank of Baroda Such a question would probably lead to a puzzled silence The large majority of consumers cannot differentiate significantly between the brands of major banks

BRAND BUILDING FOR A BANK ITS DIFFERENT

Product definition
Financial products are not so well-defined as FMCG products. y A current account is not a single physical entity, but a collection of several elements, from the chequebook to the conversation with the cashier.
y

Brand differentiation
FMCG marketers strive to differentiate their brands by communicating a competitive edge or USP and by avoiding launching me-too products y Marketers in financial services, however, focus on building long-term relationships with their customers in as many ways as possible y Since the maintenance of existing relationships lies at the core of their strategy, copying competitors and their products can be appropriate.
y

BRAND BUILDING FOR A BANK ITS DIFFERENT

Consumer motivation
In FMCG markets customer loyalty is hard to win and retain y Consumers in the financial sector are very reluctant to switch between companies, they perceive the differences as negligible and not worth the possible disruptions
y

Measurement of brand strength

Awareness levels and propensity to repurchase allow a reasonably accurate measurement of brand strength in FMCG y With financial brands, the concept of repeat purchase is less meaningful, as it needs to be measured over years y Likewise, brand loyalty is hardly relevant, as inertia prevents customers from switching
y