Building Winning Brands

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Building Winning Brands

DR. (MRS.) CECILIA IBRU

MD/CEO, OCEANIC BANK INTERNATIONAL PLC

At The 2008 AAAN Business Seminar At Eko Hotel & Suites, Lagos

Friday July 4, 2008


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OUTLINE

Introduction

Brands and Branding

Critical Success Factors In Branding

Ailing, Failing and Winning Brands

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Oceanic Bank As A Winning Brand

Challenges to Building Winning Brands

The Way Forward

Conclusion

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Introduction

I will like to start by praising member agencies and the ExecutiveCommittee of theAssociation of Advertising Agencies of Nigeria(AAAN) for all their efforts aimed at strengthening andprofessionalizing the advertising industry.

Over the years, through various interventions, the AAAN,(formerly the AAPN) has continued to demonstrate that it is a

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value adding organisation not only to the clients business butalso to the socio-economic development of Nigeria.

The theme of todays seminar Building Winning Brands is well

thought out, especially in the light of the globalised nature ofbusiness and the recognition of the power and contribution ofstrong brands to the triple bottom line; Economic (profits),Environmental and Social.


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Introduction

Nigerian businesses today face new challenges such as increasinglocal and foreign competition, changing customer demographicsand market dynamics, complex and changing regulatoryframeworks, human capital issues, rising stakeholderexpectations etc.

A stron brand in the market lace is therefore a ke com etitive

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advantage. According to Torsten H. Nilson, author of CompetitiveBranding;

Competitiveness is the key to business success and strong brands can make

the difference between winning and losing in the market place. Nilson also said that;

a company or brand will not succeed unless it has a perceived competitiveadvantage. You have to be seen as better than the competition in one orseveral aspects.


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Introduction

We can use the banking sector in Nigeria as a case study where acombination of factors including focused leadership andcustomer centricityhave helped to push the smaller banks that

were once regarded as new-generation banks in the 80s and 90s

to Top 10 positions.

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rou y, cean c an s now a op an n ger a accor ngto the latest Ranking of Top 10 banks in Nigeria done by ELI (abusiness rating and support services agency).

At Oceanic Bank, we are not just reveling in our current positionas a leading bank brand in Nigeria. We also have globalambitions and aspire to be aTop 3 African bank brand by 2010

with a view to global dominance.


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Brands and Branding

Let us attempt some definitions of brands and branding. Nilson (2000) writes that

"A brand is really just a symbol with tremendous potential, and that thissymbol can be expressed in many different ways.

This is particularly true as such symbols such as the Nike

swoosh, the Mercedes star and the McDonald's golden arches

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. The brand symbol can also become a distinctive feature from

other competing brands. Cowking & Hankinson (1996) writethat;

"A brand is simply a product or service which can be distinguished from itscompetitors.

John Murphy cited in Hart & Murphy ed. (1998) also submit thatsuch distinguishing aspects and brand features could be tangibleand intangible.


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Brands and Branding

A working definition

Brands are the tangible and intangible attributes of a product, service or

place comprising the brand names, logo, colour, values, elements, attributes,

customer service levels, price, packaging etc.

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brands.

Branding is a continuous process rather than a destination due to

the changing and dynamic nature of the market place. This process requires inputs from, and active collaboration of

both the clients (management and all employees), the advertisingand branding agencies, the media, the customers and other

relevant stakeholders.


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The Pulling Power of Brands

Brands create emotional connection between thecustomers, investors, tourists, products, services andbusinesses, countries and regions (brands plantlovemarks in their minds and wallets)

Brands make selling easier as a result of this connection

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Brands build name awareness, prompt consumerselection and trial, and helps a business in attracting and

retaining highly skilled employees Brands differentiate products and services from

competitors.


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The Pulling Power of Brands

Previously, physical assets and cash in the bank wereconsidered the most valuable assets of a business.

Today, brands are now considered the most valuableassets of a business according to the 2007 report of the100 Top Global Brands by Interbrand, JP Morgan

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Chase & Co., Citigroup, Morgan Stanley andBusinessweek.

Companies like Google, Nike and Yahoo are valued so

highly because of their brand names (intangible assets). Since brands are our most valuable assets, we must

therefore protect, defend and guard our brandsjealously.


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What Do These 10 Global Brands Have In Common?

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These Brands Are Amongst The Top 10 Global Brands Of 2007

11Source: Brand Valuation Index & Rankings of 100 Top Global Brands by Interbrand, JPMorgan Chase & Co., Citigroup, Morgan Stanley and Businessweek


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Matters Arising From The Brand Valuation Index & Rankings

of 100 Top Global Brands

No Nigerian or African brand is in the top 100 Dominance of American brands (52 brands out of 100

brands in the top 100)

Brands from Germany, France, United Kingdom,a an. Sweden South Korea Ital and Switzerland

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make up the top 100 list

What lessons can we learn from American brands andtheir branding agencies?

How can we position and build Nigerian brandstowards becoming winning and world class brands,especially in an increasingly globalised world ?


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What lessons can we learn from American brands

and their branding agencies?

The brands use American celebrities such as TigerWoods, Michael Jordan, Kobe Bryant to promote theirbrands.

The same way United Kingdom is using DavidBeckham to project the country and their brands,

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Portugal is also using Cristiano Ronaldo as a nationalbrand icon.

Food for Thought

Can Nigerian brands not capitalize on the rising fortunes ofNollywood stars and sports personalities around the world to alsoproject Nigeria and Nigerian brands?


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Nigerian Brands Go Global

The banking sector is spearheading the push of Nigerian brandsinto the global market with presence in some African, Europeanand American countries.

There is also reported interest from the telecom sector e.g.

Globacom which now has presence in Ghana, Republic of Beninand India.

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We will like to see brands from other sectors particularly in

manufacturing (fast moving consumer goods FMCGs) takethat bold step just like the Dangote Group are doing at themoment.

Despite the high risks and huge capital involved, and the fiercecompetition in the external market, this trend should beencouraged as Nigerian brands are no longer local champions.

Our brands need to be out there competing with the best brandsin the world.


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Some Nigerian Brands Already On The Global Scene

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Lord Maurice Saatchi, co-founder of the advertisingagency Saatchi & Saatchi gave a speech at Cannes in2006 on the Death of Modern Advertising.

What Lord Saatchi meant was that the rules and market

place have changed.

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o c en s an e r a ver s ng agenc es s ou nolonger think only in advertising terms.

The advertising paradigm has now shifted to branding.

The challenge though is to understand the criticalfactors that would lead to effective and successfulbranding campaigns.


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Chuck Brymer, CEO of Interbrand Group was asked tosummarise what makes brands great based on hisexperience. His answer was: Great brands must consistently deliver on their promise

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,processes

Great brands must have distinctive positioning andoffer superior customer experience

Great brands provide a platform for alignment ofinternal and external commitment to the brand

Great brands stay relevant to consumer and otherstakeholders needs


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Drawing from our experiences at Oceanic Bank since westarted 18 years ago, other critical success factors inbranding identified so far include: Understanding of the market, customer needs and

operating environment

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anagemen an emp oyee uy- n an suppor o ebranding programme

Adequate resourcing (human and material)

Identification of clear objectives and setting oftimelines Favourable operating environment (enabling

environment)


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Recognition of the fact that branding is aprocess not a destination

The need to rejuvenate the brand when

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necessary roug a e ran ng process

The strategic roles of branding agencies

and other service providers to the process Fine-tuning of the Brand platform model

to suit the needs of the brand (see chart)


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The Brand Platform Model

A suggested platform to build winning brands on

Brand personality

Brand manifestation and

area of competence

Brand communications

Internal & external

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Brand Platform

Brand vision, mission

& values

The tone of voice

Products, services and behaviours

Bringing the brand to life

for all audiences

Source:Anne Bahr Thompson (2004)


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Failing Brands

What is a failing brand? As the brand life cycle (BLC) suggests, every

brand runs its natural course just like humans(see BLC diagram)

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the investments made on it, and has no realisticchances of doing so in the near future.

Management will have to decide if it shouldkeep pouring resources into resuscitating afailing brand or if the brand should be sold(assuming there are takers or buyers) or rested.


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Failing Brands

A Brand could fail as a result of the following:

Declining market (e.g. the market for mobile phoneswithout cameras, videos and other features havedeclined)

Com etitor action e. . A le i-Pod has ed ed out Son

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Walkman/Discman)

Own fault (e.g. William Ratner of Ratner Jewellerychain in the UK whose off-the-cuff comments at an

Institute of Directors (IOD) dinner that the jewelriessold by his chain are crap led to the fall in share valueand subsequently demise of the business)

Lack of sensitivity to changing market environment and

consumer demands/needs


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Nigerian Bank Brands And The Rebranding Process

The banks rebuilt their financial strength through re-capitalization. This increased stakeholder confidence.

Enthronement of stricter corporate governance regime

Implementation of Identity change programmes (names, logos,pay-off lines and other signage)

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Investment in technology (ATM, online banking etc) to improveservice delivery

Branch expansion locally and foray into the international market

Investment in human capital development and recruitment ofskilled professionals from the Diaspora

This rebranding process is still evolving and ongoing


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Oceanic Bank As A Winning Brand

At Oceanic Bank, we pride ourselves in our position asa leading bank brand and a Top 2 bank in Nigeria.

Due to the hardwork, commitment and professionalism

of Oceanic Bank staff, and staff of the subsidiary

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companies in the Group, Oceanic Bank has continuedto delight shareholders and other stakeholders withsuperlative performances and results.

Our brand building efforts is hinged on our vision andcore values, a management belief in sustainability andcommitment that only the best will do for our various

stakeholders.


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Oceanic Banks Brand Strategy

Oceanic Bank is a brand that has evolved over time. Weregularly review our brand strategy in line with ourbusiness objectives, and changing market dynamics.

We however try to keep our strategy simple and

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.

At the moment, we are working with a firm ofinternational branding consultants and our local brand

agency to re-brand and reposition Oceanic Bank so asto meet our objectives of being the number 3 bank inAfrica by 2010, with a view to global dominance.


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Oceanic Banks Brand Strategy

The Oceanic Bank brand promise is evident in our vision: ThinkbankingThink oceanic

Also, it is evident in our current slogan/pay-off line: Experiencepeace and in our past slogans; The Pearl of Banking,

ServiceAbove All Else

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We have also variously reflected our business activities in somethematic branding campaigns we have executed for e.g;

Building a Stronger Nigeria

The Dynamic Bank Our logo has however remained consistent as the ocean and

pearl logo concept best captures the vision of the founder andmy husband Olorogun Michael Ibru.


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Some of Oceanic Banks Brand Identity Elements

Lo o and thematic a -off lineE-Newsletter

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Scarf, tie and lapel pin

CSR events

Products & services


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Some of Oceanic Banks Brand Identity Elements

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Customer centricity

Industry awards & recognition

Branch design & ambience


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Achieving Brand Equity

Brand equity is the sum of all goodwill that a brand enjoys fromits customers, consumers and other stakeholders relevant to itsmarket survival.

Some brands accumulate negative equity while others accumulate

the more desirable positive brand equity

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Brand equity is an ongoing process, and not a destination.

Brands must therefore continue to excite their stakeholders inorder to retain and improve on their equity as this directly

impacts on brand valuation. The Brandt and Johnson brand equity model best summarises

contributory factors to achieving positive brand equity.


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The Brandt and Johnson Brand Equity Model

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Challenges to Building Winning Brands

Stifling competition which may be beyond the controlof the brand owners and agencies

Disagreements between client and agency

Lack of employee buy-in and involvement

Poor ualit roducts and services

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Poor customer experience which does not meet theexpectations from the brand promise

Resources (human and material) Impatience and a desire to achieve instant success

Failure to learn from past experiences or experiences ofother players/competitors in the market


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The Way Forward

Collaborative Branding between the federal and state

governments, and businesses (United We Brand).Turning Made in Nigeria into an aspirational productlabel just like Made in America or Made in China.

AAAN should re-brand itself toAssociation of

Branding Agencies of Nigeria (ABAN) to reflect the

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advertising services in todays business environment.

Improvement of skills of branding practitionersthrough regular training

More agency and client dialogue to ensure that all areon the same page


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The Way Forward

Clients should honour outstanding service charges andinvoices on time

Agency to study clients business to be able to addmore value and offer better strategic advice beyondadvertising campaign planning

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More research into understanding the needs of today's

consumers and what it takes to plant love marks ontheir minds

Agencies to help clients exploit emerging social media(My Space, You Tube, Face Booketc) in reachingyounger market segment.


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Conclusion

It has been an interesting and enlighteningexperience sharing these few thoughts with you.

I hope that the AAAN will take some of the

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eas rom o ay s sem nar orwar animplement those it thinks will add value to itsservices and the clients business

I thank you once again and wish you continued

progress in all your activities.


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Thank you for listening

Building Winning Brands

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