More Banks Are Striving to Get Their Names Across

McDonald's has what banks want: not the burgers, but the brand.

Diversifying and branching out as never before-in the traditional sense and in the virtual space of the Internet-banking organizations are trying to create for their names and images the power that distinguishes McDonald's and Coca-Cola, Microsoft and Nike.

Branding, as aspiration and buzzword, has landed with a vengeance.

In recent days, Banc One Corp., First Union Corp., and Great Western Financial Corp. have revealed plans for major image-advertising campaigns, of superregional if not national scope, that might help them achieve household-name status.

Banc One last April hired Kenneth T. Stevens, a former executive with Pepsico subsidiary Taco Bell, to head its national retail bank group and emphasize its brand. Toward his goal of building a national identity, Banc One is spending $9 million on advertising in 47 of its markets, spotlighting the "new Banc One."

First Union Corp. chairman and chief executive officer Edward E. Crutchfield is articulating the same need.

"We're now a national company, but nobody's ever heard of us," he said recently. "We've got to pound the message; pound it, pound it, pound it."

Charlotte, N.C.-based First Union, like other superregionals, has entered markets in which it was largely unknown. Spanning the East Coast after its acquisition last year of New Jersey-based First Fidelity Bancorp., it plans to blanket that territory with a brand-oriented broadcast and print advertising campaign.

The campaign accounts for a large chunk of First Union's $85 million advertising budget for 1997. The $136 billion-asset company decided to double its ad spending this year to identify itself as the "first union" between a bank and an investment bank and brokerage.

The ads, expected to begin airing this month, will be seen from Florida north to New England.

Likewise, Banc One is "going national" with the biggest advertising campaign in its history. What was once a decentralized coalition of banks lightly orchestrated from the Columbus, Ohio, headquarters has become a $102 billion-asset juggernaut, its retail network stretching from Ohio to Arizona.

Meanwhile, Great Western, the Chatsworth, Calif., thrift, decided it was time to update a frontier image reinforced over the years by celebrity spokesmen such as the late John Wayne.

"We found there was not a lot of linkage any more between Great Western and the Old West," said Dennis A. Shirley, senior vice president and marketing director at the $43 billion-asset thrift.

Wells Fargo Bank, whose stagecoach imagery is one of banking's most compelling brand icons, "owns the Old West," Mr. Shirley said. "For us to compete with Wells was ridiculous. We would advertise and the awareness would go to Wells."

After a three-month agency review, Great Western last week announced it had chosen Bozell Worldwide to "put a new face on the bank," said Mr. Shirley. The decision ended the thrift's 20-year relationship with Dailey & Associates.

Great Western intends to spend $15 million in 1997-a slight increase over the previous year-for radio, television, and print advertising, Mr. Shirley said. The campaign should begin sometime in May, he added.

Aside from the confusion with Wells Fargo, Great Western's public in California and Florida was probably not very aware of how much the company had changed in recent years, Mr. Shirley said. With its array of consumer and business banking products, it is far more than the mortgage-heavy savings institution it began as.

BankAmerica Corp. and Citicorp-which are regarded with Wells, NationsBank Corp., and the newly aggressive KeyCorp as ahead of the curve in banking brand sophistication-are also seeking new ad agencies. BankAmerica wants not only to come up with a new campaign, but also to consolidate all of its advertising into one agency and a consistent message, according to a spokesman.

Of course, the branding issue, for all its sense of urgency, is not a new one.

Richard Evans, president of Evans & Associates, Weston, Conn., does not believe any bank has done a good job of marketing itself to a national audience.

Mr. Evans, who has written a book on brand loyalty in financial services, said Citicorp has so far done the most to create a national brand identity. Citi even has a global branding strategy. But Mr. Evans believes it is too early to measure Citi's success.

The consultant, formerly with Chase Manhattan Corp., said it is will take at least five to seven years for a banking company to rate with McDonald's and its ilk.

Mr. Evans said three big financial brand names-American Express, Merrill Lynch, and Charles Schwab-are ahead of most banks. But the reason, largely, is that they have done better at defining their products.

"Banks historically have not focused much on advertising or communicating the characteristics of their brand," said Alan J. Bergstrom, president of Brand Consultancy Co., Atlanta. "They've treated the business as a commodity business, so they've done advertising around products. But they are starting to loosen up the purse strings and spend money on brand."

"Our consumer is besieged by a proliferation of choices-places to invest, borrow, and manage their money," said Lynn Brown, senior vice president and director of marketing at Wachovia Corp., Winston-Salem, N.C. "Now is not the time for banks to remain quiet."

Wachovia plans to roll out a new brand campaign by mid-year, although details are sketchy.

Cleveland-based KeyCorp has spent the past couple of years hammering on its brand name. It has hired executives from American Express and Pepsico to develop a strategy, which included spending $100 million in 1996 on advertising and sponsorships.

NationsBank Corp. spent $100 million on rights and tie-ins associates with its sponsorship of the Olympic Games in Atlanta. Banc One, KeyCorp, Fleet Financial Group, and CoreStates Financial Corp. have joined the multi-industry trend of paying to have their names attached to major sports arenas.

Charles Wendel of Financial Institutions Consulting, New York, warned that names alone will not be banking's salvation. "Branding does not allow you to mask poor quality, poor products, and poor service," he said. "It allows you to advertise features that distinguish you from the competition."

"Branding is all about image and perception," said Mr. Evans, "but you have to deliver against the promise."

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER