The Building Society Turned Bank
It may go down as one of the biggest rebranding disasters in corporate history. When, in September 2003, Luqman Arnold, then chief executive of Abbey National, declared the institution was “turning banking on its head” by shortening its name to Abbey and slapping a lower-case logo in pastel shades on its branches and product literature, there were a few raised eyebrows. In Scotland there was much gnashing of teeth as it emerged insurance brands Scottish Provident and Scottish Mutual were for the chop.
A Clear Disaster
The exercise – which brought an end to Abbey’s famous “couple under an umbrella” logo – was overseen by brand agency Wolf Ollins at a cost of some £11 million. It was led by former Abbey director Angus Porter, who when at Mars rebranded Opal Fruits as Starbursts and recently left the bank with a near £1m pay-off.
In marketing terms, however, the rebrand was a clear disaster. Last year, pre-tax profits in Abbey’s core retail business shrank by 20% to £814m compared with 2003 and there was another big slump in market share. New mortgage lending is also down year on year from 9.9% to 3.1%, reducing its overall mortgage share from 10.7% to 8.6%.
A New Look Yet Again
It should, therefore, come as no surprise that, a mere 17 months after the last rebrand, Abbey’s new owner, Banco Santander Central Hispano, is changing the look yet again. Out goes the former “dress shop” image and back comes upper case “A” into the Abbey name. Instead of four pastel shades, there will now be just one colour, bright red. To show that it now has the clout of a powerful global financial services group behind it, Abbey is also adopting the Spanish bank’s “flame” symbol.
An £8m branch refurbishment programme kicks off in May – before the last one is even complete. Arnold’s bid to make the branches look less intimidating failed because it was a purely cosmetic exercise. Despite the “dress shop” ambition, customers’ experience remained much the same.
The Importance of Core Values
“It’s as if Abbey was ashamed of being a financial services company and wanted to be something else,” said one Scottish marketing expert. “Often management teams rush out and change the logo when this is, in fact, the last place they should look. You have to change the core values before anything else.”
Derek Mabbott, senior manager at London-based branding specialist Prophet agrees: “The last rebrand of Abbey has become a classic example of how not to do re-branding. Pastel shades and quirky ads do not sell financial services, or anything else for that matter.
“The new logo is simply a sign saying ‘under new management’. What really matters is what that new management delivers for customers, not the sign over the door.” However Derek Reid, managing director of Scottish advertising agency 1576 believes Abbey’s latest rebrand is “a classic case of a new owner weighing in with clumsy boots. It’s a regressive step that is fairly dull and corporate.” He says he prefers the “subtlety” of Arnold’s “bold move”.
The Importance of Staff Re-Education
One error made by Abbey’s former owners was to unveil their new look ahead of any staff re-education programme. Marketing experts say this contrasts with the approach adopted by Glasgow-based Clydesdale Bank, part of National Australia Bank (NAB).
Martin Holmes, head of brand development at NAB Europe, says Clydesdale’s recent burst of marketing activity followed a nine-month intensive survey of how staff and customers perceived the brand. Four key “brand values” emerged from the research: trust, empowerment, approachability, and expertise.
Before embarking on any advertising or marketing, Clydesdale ensured staff went through what it termed “brand training” – after which more than 70% were able to cite the bank’s brand values, with 75% claiming the process meant they could do their job better. Only then did Clydesdale launch its slew of marketing initiatives.
Hotels and the Importance of Branding
The Impact of Branding in the Hotel Industry
Branding plays a crucial role in the success of any business, and this is especially true in the hotel industry. A strong brand can differentiate a hotel from its competitors, create loyalty among guests, and ultimately drive revenue. With the increasing competition in the hospitality sector, hotels need to strategically position their brand to stand out and attract modern travelers.
To build a strong hotel brand, hoteliers should consider the following strategies:
1. Define a Unique Value Proposition
A hotel brand needs to have a unique value proposition that sets it apart from other hotels. Whether it's a luxurious experience, personalized service, or eco-friendly initiatives, the brand should clearly communicate what makes it special and different.
2. Consistent Theme and Design
Creating a consistent theme and design throughout the hotel helps reinforce the brand identity. From logo design to interior decor, every element should reflect the brand's personality and overall customer experience.
3. Guest Experience
The guest experience is at the core of a hotel brand. Providing exceptional service, personalized interactions, and memorable moments will not only create loyalty but also encourage guests to spread positive word-of-mouth about their stay.
4. Online Presence
In today's digital age, a strong online presence is vital for any hotel brand. This includes having a user-friendly website with high-quality visuals, engaging social media profiles, and positive online reviews. Online marketing strategies such as search engine optimization (SEO) and online advertising can also help increase brand visibility.
5. Staff Training
Investing in staff training is essential to ensure that employees understand and align with the hotel's brand values. Well-trained staff who embody the brand's vision can deliver a consistent and exceptional guest experience.
The Power of a Strong Hotel Brand
A strong hotel brand not only attracts guests but also creates loyalty and drives repeat business. Travelers are more likely to choose a hotel they trust and have had a positive experience with in the past. Additionally, a strong brand can command higher prices and increase direct bookings, reducing dependency on third-party online travel agencies.