Comments on: What’s in a brand name? When global trumps local

By: Adhil Patel

Adhil Patel — Wed, 24 Jun 2009 16:33:11 +0000

At the heart of this debate is the almost unsolvable issue of Brand Architecture choice. Should we be going with the Branded House (Santander for all) or the House of Brands (keep the local names)?
Each has its pros and cons, and it all comes down to the strategy of the parent, surely? If we’re looking to build a new, big, strong brand, then going with Santander makes sense, but if we’re likely to be making speculative acquisitions, the local brands might be better.
Lastly, we really should give some consideration to the positioning of the brands being merged. If they are too different to be smashed together, then we should consider keeping them separate.

By: David

David — Sun, 21 Jun 2009 21:18:26 +0000

It’s interesting to see what’s been done with brand names. You are right that there are lots of examples in the financial space…Bank of America Merrill Lynch just unveiled a new, underwhelming identity. Part of the problem is that there are internal “emotions” to existing names. But in reality, they need to be more objective in pursuing brand naming strategies that make sense. Until then…it will be more organizing chaos, just as you say.

By: Nigel

Nigel — Thu, 18 Jun 2009 01:14:21 +0000

Thanks for this Salim. You are right, the two make an interesting contrast. There is a delicate balancing act between “hopelessly local and mindlessly global” (to quote Simon Clift). The trick is to figure out where the balance lies. Right now I suspect it is better for a financial service organization to be seen as local and trustworthy rather than big and global.

By: Salim

Salim — Thu, 18 Jun 2009 00:20:21 +0000

It is interesting to note that Santander’s biggest competitor from Spain, BBVA, has taken a different approach. They have tried to retain the brand names, at least partially, of the major banks that they have acquired.

In the US they have branded all the acquired banks as BBVA Compass - Compass is the biggest acquisition in the US.

Mexico is another good example of their strategy. They acquired one of the biggest banks in Mexico, Bancomer, nine years ago and have since branded it BBVA Bancomer with the Bancomer name being emphasized in their communications.

One coud argue that retaining the brand name could be a sound strategy even in a category where there is apathy towards brands. Local banks that exemplify values such as trust, honesty and personalized service would surely provide some advantage.

By: Nigel

Nigel — Tue, 16 Jun 2009 17:55:31 +0000

Thanks Laura, as you say it will be interesting to see how this one plays out. I keep coming back to the question of whether a segmented approach retaining two or three of the brand names might have been more effectivein the long run, but we’ll never know.

By: Laura M

Laura M — Tue, 16 Jun 2009 17:04:24 +0000

Interesting article Nigel. I think the Santander rebrand is going to be one to watch in the finance sector over the next year or so. They’ve done a lot of groundwork over the past two years raising awareness of the bank, sponsoring McLaren and the British Grand Prix and more recently integrating a ‘Togetherness’ message into their comms along with Lewis Hamilton from the McLaren F1 team. But while awareness among consumers is now pretty high, I think that familiarity with the bank is pretty limited to just knowing the name, certainly nothing like the heritage of the Abbey name (some of which is negative, certainly when it comes to service perceptions!)
They’ve certainly been trying to play on the safety and stability in Santander’s global size message over the past nine months and I think they see this as their get-out clause from ‘financial turbulence’. However, I wonder if this is necessarily a motivating message for British consumers in a recession where big name players have been publically and dramatically going bust. I think it’s possible that a more personalised service and small-scale approach might be perceived as more trustworthy for consumers (something like the ‘I’m not just a customer reference number’ activity Aviva has used to follow their initial splashy rebrand TVC.
Whatever approach they take I think it will be interesting to see this one unfold!

By: Nigel

Nigel — Mon, 15 Jun 2009 12:50:13 +0000

Thanks for the comments guys, apologies for not replying sooner but I have been on vacation. My trip to Maine reminded me just how many small banks exist in the US. Given all the negative publicity about the big banks in the US and UK it makes me wonder whether “small is beautiful” might not be more appealing - at least to US consumers.

By: Ed Chiaramonte

Ed Chiaramonte — Thu, 11 Jun 2009 18:57:37 +0000

I think these buyouts should be judged case by case. I’m unfamiliar with the Spanish bank but had no problem when my local US bank merged with a few others and aquired a new name. I also wouldn’t have minded if it was bought out by a bigger more well-known company. Most bank buyouts I’ve heard of come with the advertising/messaging of “but we’re still going to keep our focus on the local community”. I think for the most part business as usual. Unilver is a great example; another one that comes to mind is Reckitt’s Lysol (in the US) and Dettol (in the UK) - separate but equal great brands. Now if a Chinese company bought GM and changed the name of Corvette or Cadillac, I think people would have bigger problems with that and the equity might not transfer.

By: James Welsh

James Welsh — Thu, 11 Jun 2009 15:10:48 +0000

Maybe the added value here is “bigger is safer”, less likely to fold.
Santander is a well known Brand. Certainly not here in N-A but in Europe. Now if the take-over was by a French (France) bank the typical British reaction would be predictable!