WHAT'S IN A LOGO? THE REAL WORK BEHIND REBRANDING

Absa's new logo has been the focus of some animated, and at times cutting, news and social media

debate. Not everyone has found it appealing. One Twitter user went so far as to say that it looked like it

had been drawn by a toddler. It is$,$ however, unlikely that the people behind the re$-$branding are taking

this type of criticism too seriously. They know with the certainty of experience that within five years

everyone will have accepted the logo and few people will even remember the old one.

The truth is that for any organisation going through a re$-$branding process, unveiling a new logo is not

the end goal. It is just the start. Coming up with an attractive design, choosing the colour and deciding

on a font are the easy part. What follows is what really matters$-$ and it requires a long$-$term view.

A strategic decision

Given the enormous cost involved, it is safe to assume that the executives and board that signed off on

the re$-$branding didn't do it just because they felt like a change. It only makes sense if it was a strategic

decision based on a much broader argument $-$ that Absa wants to change its business dramatically, that

it wants to reclaim market share, shake off the past, move away from the association with Barclays, and

position itself in an entirely new way$-$ particularly outside of South Africa on the rest of the continent

where it has undergone a name change from Barclays Africa to Absa. CEO, Maria Ramos, announced

in March that the bank plans to double its market share of banking revenue on the continent to$,12\%.$ If

it achieves this aim, then we will know the branding exercise has worked.

Follow$-$through

So how can Absa ensure it does not fall into this trap? With its new logo$,$ the bank has tried to present

an image that is fresh, youthful and technologically savvy. The choice of all lower case lettering in

particular is unconventional, and a deliberate break from the conservative, all upper$-$case logo of the

past.

The drone light show over Johannesburg took this even further. So did the opening of its new digitally$-$

enabled branches with free Wi$-$Fi and virtual banking. Absa has also announced WhatsApp banking, a

first for South Africa, as part of its digital banking strategy. This is a bold positioning, particularly for a

Graduate School of Business Examinations

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bank$-$ which by its very nature, is a conservative, bureaucratic, rules$-$based institution. Anyone who has

applied for a home loan knows that you have to tick all the boxes, or you don't get the money. The

parameters are set, and you have to meet them.

The challenge now is whether Absa is actually going to be bold and brave. Will it live that language?

Because if it can't deliver the service and products to match its new image, then the re$-$branding will be

a failure. A new logo is only symbolic. For a re$-$and standards and improved tools and systems" which

would help them "keep supply chain costs down" and boost volumes. A new logo is only symbolic. For

a re$-$brand to work, it has to follow through and deliver on its stated intentions and that is not easy. Any

brand is about meaning. What is really important is not what a logo looks like, but what people think

and feel when they see it$.$ That is why it will be years before we can know whether this re$-$branding has

really been successful or not. Ultimately, it is not people's immediate reaction to the logo that matters,

but their long$-$term response to Absa's performance and indeed, the banks success in meeting its growth

targets. The real power of the brand is not the design people see on Absa's door or on top of their bank

statement. It is how they feel about the way the bank behaves, the reputation it builds and the trust it is

able to inspire.

REQUIRED:

a$)$ Explain what rebranding is and then discuss why ABSA might have found it necessary to rebrand

itself. $(10$ Marks$)$

b$)$ Branding can be seen as a powerful means to secure a competitive advantage. How does the

rebranding of its logo assist ABSA in securing a competitive advantage?