Went to a conference about bank branding recently, and hated it. The whole event felt, oddly, like a gathering of medieval physicians discussing the latest thinking on the medical use of leeches: earnest, intense, full of zeal and certainty, but actually - as subsequent events would prove - about 95% wrong.
The keynote speaker was someone responsible for a very large bank’s global brand strategy. She made a very odd presentation, falling basically into two halves.
In the first half, she explained how a close study of the international branding strategies available had convinced her that a single global master brand was the right option for her bank. She explained how her thinking had been influenced by other best-of-breed global brands: McDonald’s, BMW and Coca-Cola were three that she cited approvingly.
In the second half, she went on to explain how, beneath her global master brand, the bank now catered for its target markets’ needs by means of five segmented “propositions” - individually named and promoted packages of services relevant to each of the five groups. She focused on two, the upmarket package for older and more affluent people, and the package for younger customers earlier in their careers. Of the other three, one is for small businesses, one is for big businesses and I don’t know anything about the fifth.
I must say, I can’t decide which half of the presentation I found harder to understand.
In the first half, it seemed to me that her analysis of these “global master brands” was simply wrong. Although McDonald’s, BMW and Coke are all extremely strong brands, I wouldn’t say that any of them stand alone by any means as monolithic master brands. I’d say that McDonald’s has quite clearly and deliberately developed a growing range of sub-brands, connecting either to products (Big Mac) or to packages (Happy Meals) or to other elements of their iconography (the bizarre and frightening Ronald McDonald). I’d say that although BMW products have boring names, to their target markets these are product brand identities rich in rational and emotional engagement: for any petrol-head the simple prefix “M” - as in M3 and M5 - says everything that needs to be said about the high-performance variant of BMW’s saloons, and actually to those who know and care about such things the difference between, say, 316 and 335 is all the difference in the world.
But the oddest of her three examples is undoubtedly Coca-Cola. Within the Coke family, it seems to me that the company is trying to create at least one distinct sub-brand, Coke Zero, and probably more. But much more importantly, the Coca-Cola Corporation has a whole range of other brands in its portfolio, including Sprite, Dr Pepper, Fanta, Powerade and Malvern mineral water, among many others. Corporately, Coca-Cola absolutely isn’t a master-brander at all: it sits at the opposite end of the spectrum, as a leading proponent of the “brand portfolio” or “house of brands” approach.
So by the time the presentation moved into its second half, I was already struggling with the speaker’s argument. But, if anything, I found the second part even more difficult to understand. First and foremost, I simply couldn’t understand how the separately-named, discretely-targeted, individually-promoted “propositions” that she spoke about were anything other than brands under another name. OK, a bit like BMWs, they have fairly bland and generic sounding names, and their individual look and feel (including the typography) fits within the brand’s overall visual identity (as indeed do BMW’s). But to say that as a result these things are not “brands” seems to me to make a complete nonsense of what the word “brand” actually means.
There was another aspect of this second part of the talk that bothered me, which was how on earth a huge global bank can respond to the needs of all of its customers with just five “propositions.” Thinking about the range of things that the bank can do for just one customer - take, for the sake of argument, me - I’d have thought you’d have needed dozens of “propositions”, or whatever you want to call them, just to respond to my needs alone.
And in fact, it was pondering this apparently unsustainable idea - that five propositions can cover the entire global waterfront - that gave me a vague sense of a possible explanation for the whole presentation’s line of thought.
Like everyone addressing this kind of topic, the speaker had several slides designed to show us how, until quite recently, the approach to branding and sub-branding around the world had been chaotic, and not in a good way. There was a huge amount of pointless, unnecessary and expensive complication, contradiction and duplication of resources. Any cost-conscious senior manager looking at the slides showing the logos of literally hundreds of business unit, product and service sub-brands from all corners of the world would itch to cut a swathe through it all, creating order out of total chaos.
And what’s the best way to tackle the problems of extreme complication? To oppose them with an approach that’s based on extreme simplicity. You’re not going to be able to dispose of the hundreds or even thousands of sub-brands championed by various groups of people in parts of the group by being nice, and reasonable, and suggesting that perhaps you should meet half-way. You’re going to have to be completely unreasonable - you need to adopt a position that makes no sense, maintain complete and selective blindness to its obvious unsustainability and refuse to engage in any kind of discussion about it.
It seems the strategy has worked. Worldwide, the bank has now discarded many, many hundreds of sub-brand identities (even though I don’t actually believe that it’s been able to replace them with just five “propositions.”) Sometimes, in corporate life as elsewhere, it’s the unreasonable person who gets things done. Fair enough. But I must say, the unreasonable person may not be the best choice to make sense of it all in a conference presentation.
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