Branding in Priority Banking

Presentation by :- Gautam Buchha (AFTERSCHOOOL)

 Flow of the Presentation-

1. Introduction to Branding with Marketing perspective.

2. Branding with respect to Consumer and Corporate banking.

3. Brand Value Chain and case study concerning the impact of branding on banks.

4. Branding approach and methods for priority banking programs.

5. Application of branding in priority banking programs and SPSS Analysis.

6. A look at some of the international banks like HSBC and BOA. Further
emphasizing the need and importance of branding in banking industry.
BRANDING – What Is It ?
It’s a name, term design or symbol

it differentiates from others

EXAMPLES
 WHY BRANDING
• To build product recognition, motivate buyers
and concrete customer loyalty
• Quality
• Consistency
• Confirm your credibility
• To connect with your target prospects
emotionally and capitalize on brand exposure
Brand Equity
BRAND NAME’S CHARACTERISTIC

• Memorable–
• Meaningful–
• Likable–
• Transferable
and
adaptable–
• Protectable–
Types
Of Generic Corporate Private
Brands Products Brands Brands

Captive
 Generic product: characterized by plain label, with Brands
no advertising and no brand name – Rice, Kerosene

 Similar to Generic drugs in pharmaceutical industry Family

Brands

Individual
Brands
Types
Generic Corporat Private
Products e Brands Brands
of
Brand
 Corporate/company brand: Corporate
Captive
Brands
s
branding is the practice of using a
company's name as a product brand
name. Family
Brands

Individual
Brands
 Types
Generic Corporate Private
Products Brands Brands
of
Brand
 Private brands: brand name placed on products
marketed by wholesalers and retailers.
Captive
Brands
 Foods Bazaar has ‘adopted’ labels like Wow
Premium sanitary napkins, insecticide spray Quit,
Tasty Treat Kasundi , & Maniar’s Khakra . Family
Brands

Individual
Brands

Private brands are popular with retailers because they usually carry higher gross

margins and thus are more profitable for the seller than manufacturer brands.
Types
Generic Corporate Private
Products Brands Brands
of
Brand
 Captive brands: national brands that are sold Captive
exclusively by a retail chain Brands
 Formsof private branding
Family
Brands

Individual
Brands

NIIT has collaborated with ICSI

 Types
Generic Corporate Private
Products Brands Brands
of
Brand
 Family brand: A brand that is used on two or more
Captive
Brands
s brands.
individual
 It is also referred to as Umbrella Brand e.g.
Electrolux Family
Brand
Noodles
Soups
Seasonin
Individual
g Brand
Savors
Sauces
Sopas
etc
Types
Generic Corporate Private
Products Brands Brands
of
Brand
 Individual brand: Unique brand name that
Captive
Brands
s
identifies a specific offering within a firm’s product
line and that is not grouped under a family brand.
 House of Brands or Multi-brand strategy:- Different Family Brand
brand names under one company. e.g. P & G –
Tide, Dash, Salvo etc.

Individua
l Brand
BRANDING and BANKS ?
BRANDING and
Private Banking ?
 WHY BRANDING ?
How does your organization differentiate itself ?
 THE Projected
BRAND IMAGE
I

Provide Attention
Priority Banking Brand Value Chain
Preferred Performanc
Marketing Customer e Shareholder
VALUE
Program Mindset in priority Value
STAGES
Investment banking
market
- Price premiums
- Product - Awareness - Stock price
-Communications - Price elasticities
- Associations - Price/Earnings ratio
-Advertising - Market share
- Attitudes - Market capitalization
-Promotion - Cost structure
- Attachment
- Profitability
- Activity

Program Priority Market

MULTIPLIERS Multiplier consumer Multiplier
Multiplier

- Clarity - Channel support - Market dynamics

- Relevance - Consumer size & profile - Growth potential
- Distinctiveness - Competitive reactions - Brand contribution
- Consistency
A strong brand distinguishes itself by being:

• Meaningful: A strong brand is relevant and compelling. Some brands create desire; others
meet existing demand, the customers you care about have to care about brand delivery.

• Differentiating: Gives the business a distinct advantage over competitors. The difference
must make a difference—target customers should perceive the difference as important.

• Believable: A strong brand doesn’t stretch too far or overpromise. These days people are
savvy and skeptical.

• Transcendent: Conveys value beyond a specific offering. A strong brand adds value to a
great product when it has one, and still gives people a reason to buy when they do not need
it.

• Consistent: A strong brand is expressed and delivered consistently across all touch points
—not just in advertising and marketing communications.
The internal perspective on brand strength includes whether
the brand is:

• Sustainable: Enables the business to compete now and in future. It should be an

enduring proposition that drives continuous improvement and innovation.

• Adding business value: Should be able to show, measure and manage the causal
relationship between brand expenditures and increased revenue. brand spend →
image equity → customer preference → customer purchase→ revenue increase.

• Clearly articulated: A strong brand is clearly defined and described to all

stakeholders. Alignment in brand execution begins with common understanding.

• Operationalized: A strong brand must be more than a vision a company expresses

—it must be what it does and what it delivers. Operationalizing the brand involves
the deliberate and systematic management of the business around the brand.
Four core branding disciplines
 Brand Strategy
Purpose is two-fold: to understand key aspects of a company's business, its marketplace, its customers and
other key audiences, and then to use these insights to define an appropriate brand strategy.

 Brand Identity
Provides the highly distinctive outward expressions of the company's values, personality and promise its
identity system consisting of elements such as the name, logo and tagline.

 Brand Management -three key functions

 Planning coordinated launch and delivery of brand messages, both internally and externally, integrating
with business and marketing plans to optimize impact and cost-effectiveness-planning
 Actively cultivating brand understanding, providing employees with brand training, assets and tools so
they can consistently deliver "on-brand" communications, personal interactions and products.
 Setting up a system and tools for monitoring and assessing the brand's health, resulting insights used not
only to maintain brand alignment, but also to evolve the brand strategy, identity, and experience.

 Brand Experience
To enable companies to design a range of experiences that customers will find meaningful, memorable, and
associate explicitly with the brand. Doing this is the surest path to building brand trust, loyalty and advocacy.
Related elements
Objectives:
1. Establishing a holistic, yet scalable approach
for building product brands

2. Providing a foundational set of concepts and

terminology for branding activities

3. Encompassing long-term brand management

in addition to specific development projects
 Brand Consideration- Three components are: the key drivers of choice, perceived
differentiation, and price sensitivity. Each of these three components influences brand
choice by impacting customer value.
.

• Traditional models that focus only on customer satisfaction are misguided.

• Focus on Competitive forces, Most models suggest satisfied buyers will remain loyal.
• Wrong assumptions: Ignoring roles of variety seeking behavior, environmental or
competitive forces.
HDFC Bank-Priority Banking Programs

 Rated as the Best Private Bank in the Super Affluent Category in India.

 HDFC Bank World MasterCard Credit Card targeting high end , with a credit limit of Rs 3 lakhs
upwards, will be made available by invitation only.
 The Visa Signature Card from HDFC is one of the most exclusive cards in the country, and comes
with a wide range of exclusive features like Signature Golf and Signature Access.
 HDFC Bank Easy Shop Imperia Debit Card
It offers you wide range of benefits like enhanced limits, cash back and much more.
 Exclusive Imperia PhoneBanking Service
The Imperia Phone Banking service gives the customer the freedom to do almost anything over the
phone - balance enquiry, loan-related queries and bill payment.
 Enhanced Banking Convenience
 Combined Monthly Statements for your savings, current and fixed deposit accounts
 Payable At Par Imperia Cheque Book
 Free Self/ Third party cash deposit at non home branches
 Sweep-In Facility on your savings accounts
Standard Chartered

 'Cirque Selecte' is a series of unique lifestyle events, open to the privileged Priority banking customer,
which cater to your preferences in sports, music, dining, literature and entertainment.

 At 'Money Talks', a series of seminars on financial and investment-related subjects, the customers are
given a platform for interacting with eminent personalities from the world of finance.

 “Nari” –In January, 2009, an exclusive preview of paintings by Wasim Kapoor were showcased, based on
the theme – “psyche of the woman”, with a backdrop of a fashion show featuring some of country’s top
designers and fusion performances.

 Exclusive Gala Dinner & Special SCB Presentation- The agenda for these events included talks by a
panel of 3 specialists, which included the Regional Economist, who gave an update of the current
economic climate, the Treasury Specialist educated on opportunities in the currency market and lastly, a
SME expert gave presentation on Financing Business Opportunities in Indonesia and Singapore.

 e$aver Account
Would enable customers to manage money anytime, anywhere, and watch their savings grow faster
with competitive interest rates.

 Marathon Savings Account

Lets the customers enjoy an interest rate as attractive as that of time deposits while enjoying the
transaction convenience and the flexibility to withdraw money anytime.
 Survey

• We Conducted the Survey Regarding the

Importance of Brand in the Priority Banking

• Methodology
– The Questionnaire was prepared and got it filled by
the 30 premier customer
– Target Customers : Premium Clients
– The results were compiled and analyzed
• Dependent Variable : Brand Equity
• Independent Variable:
•Brand Equity
•Overdraft facilities
•Mezzanine Finance
•Sweep in facility(withdrawal of money from FD
without breaking it anytime)
•Membership Cards
•Customized services
•Dedicated RM
•High Point Of sales limits
•Non- banking services(e.g. managing tours)
•If you know about HDFC, to what extent do
you know about its financial services?
Inspiration for branding in banking
 Better investment
Attract better talent
performance

Decrease acquisition
cost
Brand Simplify client choice

Differentiation and
competitive advantage Premium price
 BRAND MANAGEMENT IN FINANCIAL
SERVICES
Do you know what
you want your brand
to stand for?

Do the messages your

clients receive reflect
your brand?

Do the messages your

employees receive
reflect your brand?

To what degree are

the interactions with
your clients guided by
brand?

Is brand incorporated
in organizational
decision-making?
 Brand management is a relatively
new concept for the industry

Brand relevance is difficult to

maintain with so many client types

The similarity of product offerings

Brand makes differentiation more difficult
managemen
t challenges The significant changes required may
challenge the management of
in financial
traditional financial
services services companies.

Industry trends have made brand

positioning more complex
The client / advisor relationship, often
the key to the industry, is hard to
control
Bank of America
Rebranding
Strategies
HSBC- The World’s Local Bank
 xx

Thank You!!!!
gautambuchha@gmail.com