Brand Strategies in the Financial Services Sector in South Africa

Abstract

There are two main branding strategies adopted by organisations in the Financial Services sector in South Africa, monolithic and multi-brand strategies. Both strategies have proven to be effective in this sector. The two most successful organisations following the respective strategies are ABSA and the First Rand Group. The purpose of this research is to determine the main factors that need to be considered by organisations in the sector when they are faced with the challenge of branding a new business unit or division. The research was focused in the banking sub-sector within the Financial Services sector. The methodology chosen to complete the research was qualitative in nature and consisted of a series of in-depth interviews with senior individuals who are directly involved in the branding decisions of the respective organisations. The snowball technique was used to obtain access to a number of these individuals within the organisations. The findings revealed convergences with the literature review in terms of specific factors that need to be considered, such as taking into consideration the financial implications, the history of the organisation, the market competitors and the ability for the brand to stretch while remaining relevant to the target market. There were also a number of new factors that were highlighted that need to be considered when making the branding decision. Some of these include streamlining the operational structure of the organisation, encouraging collaboration between existing divisions, aiding recruitment of employees as well as taking the customer needs into account when branding the new business unit or division