Branding Investment Banks (autorun)

Issues of Branding in Investment Banks: 

Issues of Branding in Investment Banks September 2011

Definitions: 

Definitions Investment banking is a key activity in the provision of corporate financial services in all countries which have a developed private sector economy. The principal activities of investment banking are the raising of capital for corporations and the provision of advice on mergers and acquisitions. To raise capital, investment bankers originate, structure and sell corporate securities in order to raise funds for client companies. Additionally, providing advice on initiating and implementing mergers and acquisitions involves investment bankers in identifying suitable partners or target companies for acquisition, valuing the transaction and negotiating appropriate terms.

Interbrand: branding in relation to share price: 

Interbrand : branding in relation to share price Merrill Lynch was seeing the return on its early 90s branding investment in its ability to build and leverage its reputation in a broader market. It may have outspent Bear Stearns to do so, but the positive return was clear.

Factors affecting multinationals’ brands: 

BRAND Factors affecting multinationals’ brands Client’s brand perception Operating globally Corporate responsibility Litigation issues Local employees buy-in Global employees buy-in

Factors affecting multinational brands: 

Factors affecting multinational brands External: Brand recognition among bank’s clients Operating globally – adjusting the brand strategy to certain geographical regions, taking into account local culture and customs Ethical issues – investment banks cannot afford controversial branding strategy as other industries might Litigation issues – being in a position of a global leader in the industry, banks often attract lawsuits, often driven by their advertising or press coverage Community involvement – sponsoring community projects contributes to building stronger brands Corporate responsibility, environmental issues, involvement in local community projects Internal: Employees buy-in into the company’s brand Outsourcing – ensuring that employees around the world understand, accept and promote company’s brand

Issues specific to the investment banks: 

Issues specific to the investment banks High turnover of staff means difficulties in successful internal branding Unique client-competitor situation: banks’ major clients are at the same time competitors Concept of a ‘star’ where personal brand overshadows the corporate brand The financial products presented are replicable and similar The brand perception goal is similar to other banks

Personnell Turnover: 

Personnell Turnover Source: Investment Solutions, 2006.

Reasons for staff departure: 

Reasons for staff departure Source: Investment Solutions, 2006. Badenoch and Clark 2007 review surveyed 250 UK financial institutions - 79% of employees said that brand makes no difference to their choice of employer

Clients=Competitors=Staff: 

Clients=Competitors=Staff FSA regulations on trades, where they have to be performed by a third party Certain products are not available in-house and too expensive and time-consuming to build High staff turnover at the investment banks

‘Star’ concept: 

‘Star’ concept Investment banks fight for talent, employing the highest calibre graduates Combination of relatively high salaries and fast career progression creates a culture of ‘primadonnas’ Top performers are acutely aware that competitors would headhunt and hire them Moving from bank to bank is seen as a natural career progression Emergence of a personal brand due to close relationship with external and internal clients

Product replicability: 

Product replicability

Brand perception goals: 

Brand perception goals We’re growing our business by helping clients grow theirs – Merrill Lynch We offer our clients the most complete and innovative solutions in the industry to help them achieve their strategic goals – JPMorgan Our clients know that they can always rely on us to be there for them – UBS We are committed to growing our distinctive culture and holding to our core values which always place our client's interests first – Goldman Sachs

Branding Issues: 

Branding Issues Internal branding – the issues of a ‘star’ concept in the investment bank, when high flying employees see their personal brand as more important to their clients then the bank brand. Cultural aspects of branding globally – externally and internally – infeasibility of ‘one campaign fits all’, fitting to the individual markets, or promoting domestic idea globally (i.e. UBS concept of ‘ swissness ’). Notion of clients being competitors at the same time – what branding issues arise from that? Sub-brand – i.e. UBS Delta, Lehman Live, Ask Merrill – branding versus independent competitors ( ie . non-banks, purely technology companies), and keeping within overall banking brand. Issues of replicability of the investment banking products – since in the banking world, every new product tends to get replicated almost immediately by competitors – how to differentiate a new product and make the most of its marketing?

About Uniqa Consulting: 

About Uniqa Consulting Experience. Flexibility. Creativity.

Uniqa Consulting: 

Uniqa Consulting Full service marketing communications company, helping businesses deliver clear and consistent message across multitude of channels Over 25 years of experience developing marketing strategies for the following industries: Investment Banking Telecommunications Pharmaceuticals Information Technology Education Fashion Art Theatre

Uniqa Services: 

Uniqa Services Marketing Communications/Branding Strategic review of current state and strategy development Brand positioning and management New product development Social media imprint Electronic platform programme management Roadmap and strategy development Stakeholder management Bespoke communication plans Pilot launches and rollout Market Research Market research programme development Bespoke research reports

Uniqa Experience at a Glance: 

Uniqa Experience at a Glance

Contact: 

Contact Tatiana Jadgal +44 78 7777 3059 tatiana.jadgal@uniqaconsulting.com

Disclaimer: 

Disclaimer This material has been prepared by Uniqa Consulting Ltd(“Uniqa”). Uniqa, its related entities, directors, employees and agents accept no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this material. Additional information will be made available upon request. The leaf symbol and Uniqa are among the registered and unregistered trademarks of Uniqa Consulting Ltd. The content of this document remains intellectual property of Uniqa Consulting Ltd. Copyright 2011, Uniqa Consulting Limited. All rights reserved. Uniqa specifically prohibits the redistribution of this material and accepts no liability whatsoever for the actions of third parties in this respect.