APPROVAL FORM

The undersigned certify that they have supervised the student Benson Murau Mandava’s

dissertation entitled An Analysis of the Rebranding Phenomena in Zimbabwean Financial

Sector submitted in Partial fulfillment of the requirements of the Bachelor of Commerce

Banking and Finance Honours Degree at the Midlands State University.

…………………………………………… ……………………………..
SUPERVISOR DATE

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CHAIRPERSON DATE

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EXTERNAL EXAMINER DATE

RELEASE FORM

i
NAME OF STUDENT: BENSON MANDAVA

DISSERTATION TITLE: An Analysis of the Rebranding Phenomena in the

Zimbabwean Financial Sector

DEGREE TITLE: Bachelor of Commerce Banking and Finance Honours

Degree

YEAR THIS DEGREE GRANTED: 2007

Permission is hereby granted to the Midlands State

University Library to produce single copies of this
dissertation and to lend or sell such copies for private,
scholarly or scientific research purpose only. The author
reserves other publication rights and neither the dissertation
nor extensive extracts from it may be printed or otherwise
reproduced without the author’s written permission.

SIGNED: …………………………………………………

PERMAMENT ADDRESS: 65296 Tshabalala Extension

Bulawayo

DATE: November 2007

DEDICATION

If there was a word beyond appreciation that would be the word I would be using to describe

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how I feel towards what my parents have done for me. It is in this respect that I dedicate this to

the most wonderful people in my life and my siblings for the supportive role they played in

influencing the course of my life- I hope this serves to inspire you. To the almighty father who

has watched over me in my joy and tribulations. My Gratitude to God Is Immeasurable.

TABLE OF CONTENTS

APPROVAL FORM.........................................................................................i
RELEASE FORM...........................................................................................ii
DEDICATION...............................................................................................iii

iii
TABLE OF CONTENTS...............................................................................iv
ACKNOWLEDGEMENTS...........................................................................vi
ABSTRACT..................................................................................................vii
LIST OF ACRONYMS..................................................................................ix
LIST OF TABLES...........................................................................................x
LIST OF FIGURES........................................................................................xi
LIST OF APPENDICES...............................................................................xii

CHAPTER ONE: INTRODUCTION.........................................................1

1.1 Introduction................................................................................................................1
1.2 Background To The Study.........................................................................................2
1.3 Statement Of The Problem........................................................................................4
1.4 Objectives Of The Study............................................................................................4
1.5 Research Questions....................................................................................................4
1.6 Importance Of The Study..........................................................................................5
1.7 Assumptions Of The Study........................................................................................6
1.8 Scope Of The Study...................................................................................................6
1.9 Limitations Of The Study..........................................................................................6
1.10 Definition Of Terms.................................................................................................6
1.11 Summary / Organisation Of The Paper....................................................................7

CHAPTER TWO: LITERATURE REVIEW.............................................................8

2.1 Introduction................................................................................................................8
2.2 Definition of Rebranding...........................................................................................8
2.3 What is a Brand?........................................................................................................9
2.4 Characteristics of a Brand........................................................................................10
2.5 The Value of a Brand...............................................................................................10
2.6 Brand Equity............................................................................................................11
2.6.1 Measuring Brand Equity.......................................................................................12
2.7 Overview of Rebranding..........................................................................................13
2.8 Rationale for Rebranding.........................................................................................15
2.8.1 Mergers, Acquisition and Divestiture...................................................................15
2.8.2 Shifts in the Market Place.....................................................................................16
2.8.3 New Focus or Vision.............................................................................................16
2.8.4 Growing Importance of Capital Markets..............................................................17
2.8.5 The Need to Create Synergy with Other Brands..................................................17
2.9 Common strategies for rebranding..........................................................................18
2.9.1 The Name Change................................................................................................18
2.9.2 The Logo Change..................................................................................................19
2.9.3 The Slogan Change...............................................................................................20
2.10 Rebranding: A Case for ABSA (South Africa)......................................................20
2.10.1 Rationale for combining the four brands into one..............................................21
2.11 Effectiveness of Rebranding.........................................................................23
2.12 Summary...................................................................................................24

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 CHAPTER THREE: RESEARCH METHODOLOGY..........................................25
3.1 Introduction..............................................................................................................25
3.2 Research Design......................................................................................................25
3.3 Research Population................................................................................................25
3.4 Research Sample......................................................................................................26
3.5 Data Collection Method and Instruments................................................................26
3.5.1 Primary Data.........................................................................................................26
3.5.2 Secondary Data.....................................................................................................29
3.6 Data Presentation and Analysis Plan.......................................................................30
3.7 Summary..................................................................................................................30

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS.............................31

4.1 Introduction..............................................................................................................31
4.2 Response Rate..........................................................................................................31
4.3 Data Presentation, Interpretation and Analysis........................................................32
4.4 Summary..................................................................................................................42

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS43

5.1 Introduction..............................................................................................................43
5.2 Summary..................................................................................................................43
5.3 Conclusions..............................................................................................................44
5.4 Recommendations....................................................................................................45
5.5 Suggestions for Future Research.............................................................................47
References......................................................................................................................48

APPENDICES...............................................................................................51

ACKNOWLEDGEMENTS

The greatest possible gratitude is extended to the people whose assistance and objective

criticisms has helped me in the production of this dissertation. It would be unjustly to fail to note

the efforts of my supervisor Mrs Chikoko for her in-depth analysis which helped in refining my

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dissertation into the desired form. I am indebted to the corporate world that granted me

interviews and responded to my questionnaires for the insight that they gave to me. The role my

classmates have played cannot go unmentioned and special recognition goes to the unwavering

academic and emotional support granted to me by Donwell and Musa.

ABSTRACT

This study sought to establish the motivation behind the rebranding craze that has manifested

itself in the Zimbabwean financial sector. Corporate re-branding has seen extensive activity in

recent years, with many organisations treating a name change as a prerequisite to image

transformation. But little in the public domain has sought to examine the experience of this

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costly process.

Literature refers to rebranding as a strategically implemented process done with a view of

improving and maintaining a favourable image with its stakeholders. The theoretical and

empirical underpinnings of rebranding reveal that a brand is a very valuable asset that should be

harnessed to portray a positive image in the market place. Literature has established that for

corporate rebranding to succeed, the more structural issues need to be addressed to avert

unnecessarily costly rebranding exercises

The study adopted a qualitative approach in order to obtain to undertake an in-depth analysis of

the rebranding concept in the Zimbabwean financial sector. The methodology utilised the

administration of questionnaires, interviews (targeting Marketing Managers and Treasury or

Finance Heads) and secondary data. The geographical confines of the study was Zimbabwe and

in particular Harare, Bulawayo and Gweru.

The data was analysed to establish the reasons behind the rebranding influx in the Zimbabwean

financial sector. The findings revealed that Mergers and Acquisitions and shifts in the market

place were the leading reasons. The major findings unveiled that the success of rebranding

exercises were supported by a positive structural and strategic change of the organization. It was

also seen that it was imperative that the change meant to be communicated by rebranding be

noticeable and acceptable to the organization’s stakeholders. The findings led to the generation

of recommendations meant to aid in the understanding of the complex and infrequent process of

corporate make-overs, in order to help others undertaking a re-branding process.

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 LIST OF ACRONYMS

ABSA Amalgamated Banks of South Africa

CEO Chief Executive Officer

CGC Credit Guarantee Company

IAS International Accounting Standard

ZABG Zimbabwe Allied Banking Group

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ZBS Zimbabwe Building Society

ZSE Zimbabwe Stock Exchange

LIST OF TABLES

Table 1: Questionnaire Response Rate..........................................................30

Table 2: Interview Response Rate.................................................................30

Table 3: Rebranded Institutions.....................................................................32

Table 4: Overall and Sector Performance of Listed Banking Sector Institutions

.......................................................................................................................37

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 LIST OF FIGURES

Figure 1: A model of The Rebranding Process.............................................13

Figure 2: Reasons for Rebranding.................................................................33

Figure 3: New Customer Acquisition And Customer Retention Trends.......36

Figure 4: Influence of rebranding in Changing Outlook of A Company......38

x
 LIST OF APPENDICES

APPENDIX A: COVER LETTER.............Error: Reference source not found

APPENDIX B: QUESTIONNAIRE.............................................................49

APPENDIX C: INTERVIEW GUIDE..........................................................53

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xii
 CHAPTER ONE: INTRODUCTION

1.1 Introduction

As many shades of opinion exists as the term Christian when attempting to define a brand.

Strydom et al (2002) defines a brand as a “name, term, sign, symbol or design or combination of

these intended to identify the goods or services of one seller and to differentiate them from those

of competitors”. Keller (2003) adds that in practice, a brand is defined in terms of a certain

amount of awareness, reputation and prominence in the market place.

It would not be straying to further from the truth to suggest that a brand forms the impetus of

marketing for financial services. A Money Market dealer in a bank’s Treasury department who

find themselves short of liquidity will be greatly assisted by the strength of their brand in

sourcing liquidity. The value built up in a brand referred to as brand equity, is hugely

phenomenal in the success or failure of financial institutions.

In financial services, image stands as the thin veil between survival and sinking. By nature a

service is intangible and therefore draws heavy influence from perception. This is formed by a

good brand which should create a deep level of connection with the consumer even at an

emotional degree.

There are times when organisations attempt to manipulate their brand equity by rebranding.

According to www.wikepedia.com (2007) rebranding is “a process by which a product or

service developed with one brand or product line affiliation is marketed and distributed with a

different identity”. This implies that rebranding results in radical changes to a brand logo, image
and consequently its marketing strategy.

This chapter will explore the background surrounding the study of the rebranding craze that has

gripped the Zimbabwean financial sector. It will also bring out the problem statement of the

study it wishes to resolve and will show the significance of the study to all stakeholders. The

organization of the paper and definitions of key terms used in the paper will also be contained.

1.2 Background To The Study

A brand wave has taken Zimbabwe’s corporate institutions by storm. Many financial services

players have rebranded in the post banking crisis era of 2003/2004. However the rebranding

concept is not entirely new in the financial sector, it has just become more pronounced in recent

periods.

The former Zimbabwe Financial Holdings which housed brands such as Zimbank and Syfrets

started off as the Netherlands Bank of Rhodesia in 1967. It then changed to Rhodesia Banking

Corporation before transforming itself to Zimbank in 1980. To date it has been rebranded under

the new packaging of the ZB brand and is now known as ZB Financial Holdings. The group has

also taken aboard Intermarket Building Society which once faced serious challenges that saw the

central bank place it under curatorship in 2004.

Most indigenous banks that survived the banking crisis that claimed the scalp of 13 financial

institutions have ventured into a new brand game. It is against this background that there was a

flight of depositors to the three foreign owned and traditional banks which are Standard
Chartered, British backed Barclays and Stanbic with South African parentage.

In the Zimbabwean financial sector, the rebranding craze has normally followed mergers and

acquisitions. One of the institutions to have done this is the former First Banking Corporation

which acquired reinsurance group, Southern Africa Reinsurance (SARE) and Zimbabwe

Building Society. Consequently, it rebranded to become FBC Holdings which exudes ‘hues of

blue’ replacing the green and maroon colours.

The Commercial Bank of Zimbabwe which changed its popular Jewel Bank brand, discarded its

diamond and settled for a red sphere cast in a rectangle. The rebranded CBZ Holdings brought in

a foreign partner ABSA, a leading South African financial institution with a 24 % stake which it

has since bought back through a share buy-back scheme. CBZ also took over Datvest Asset

Management, Optimal Insurance Private Limited and Beverly Building Society and is now the

second largest bank in Zimbabwe after Barclays.

The corporate make-over craze promises to continue with insurance giant First Mutual Limited

set to be renamed First Africa Renaissance Corporation following shareholder approval. The

2003-2006 periods in the financial sector has witnessed mainly indigenous owned players

rebranding. In contrast, the foreign backed traditional players have retained their brand image.

1.3 Statement Of The Problem

Despite the huge financial cost involved, most of the financial institutions have recently

rebranded. Corporate rebranding exercises that have occurred in the Zimbabwean Financial
sector appear to contradict standard business practice, that is, long-term investment and

commitment to a brand. The revamping of corporate images is no doubt a risky process

especially if the new brand fails to communicate its intended message.

1.4 Objectives Of The Study

The intention of this research paper will be premised on the following:

 To investigate the motive behind the bandwagon rebranding undertaken by most financial

sector institutions

 To ascertain whether rebranding has any effect on the market position of institutions

 To analyse the impact of corporate make-overs on service delivery

 To investigate the impact of rebranding on shareholders wealth maximisation

 To identify whether rebranding is beneficial

1.5 Research Questions

The study will draw its focus on attempting to resolve the following questions:

 Why many financial institutions rebranded despite the huge financial cost implication

involved in the process?

 Can corporate rebranding really change the character and nature of a company?

 How valuable is a brand to services institutions?

 Does rebranding give companies strong and favourable reputations which can make them

succeed in the market place?

 How sustainable is the use of rebranding to repair battered images and thus have positive

effects on stock price?

1.6 Importance Of The Study

The research is important as it contributes to resolving the issue of why most financial

institutions have chosen to abandon their previous corporate images portrayed by the brands they

re-engineered. The study will be important to the following parties:

The research is done in partial fulfillment of the attainment of a Bachelor of Commerce Honours

Degree Banking and Finance at the Midlands State University. The institution benefits in that it

will be able to widen its academic references in the area of the study undertaken. This assists

towards the consolidation of the institution as a research centre that offers practical solutions to

the industry and the nation.

The financial services industry will be assisted in developing a concerted understanding of the

implications of corporate rebranding in its quest of the creation of value as determined by its

competitiveness and overall performance.

1.7 Assumptions Of The Study

The study is premised on the following crucial assumption:

 The study respondents will be co-operative and provide unbiased information

 All provided information will be treated with utmost confidentiality

1.8 Scope Of The Study

The study will confine itself to investigating the Zimbabwean financial sector from the year 2003

to 2006.

1.9 Limitations Of The Study

The research will inadvertently encounter impediments as outlined below:

 The time constraint presents immeasurable challenges given the limited period given to

complete the study. Time management will be essential to meet the vigorous

requirements of the research.

 The financial requirements of the study such as traveling, internet costs and printing will

be a hindrance. To overcome this challenge, the researcher will have to exercise prudent

budgeting and financial discipline.

1.10 Definition Of Terms

Rebrand- Pronounced changes to a brand’s logo, image and marketing strategy and themes

Brand Equity- The value built up in a brand

Traditional Banks- the three foreign-owned banking institutions that is, Barclays, Standard

Chartered and Stanbic

1.11 Summary / Organisation Of The Paper

This chapter introduced the subject matter under study and explored the background that gave

behind the research study. The statement of the problems was elaborated as well as the research

objectives and the research questions outlined. An attempt was made to show the significance of

the study, the scope of the study and the definition of key terms given.
The rest of the paper will explore the literature and empirical underpinnings of rebranding where

an organic assessment will be done in chapter two. Chapter three will elucidate on the research

methodology assumed by the research. The following chapter will contain the presentation of

data and its interpretation and analysis. The concluding chapter five will summarise and

conclude the research. Recommendations and suggestions on the grey areas still not addressed by

the research will be given.

CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction

The tendency by companies to carry out cosmetic surgery has increased and the financial sector

has not been left out. Greater attention is now being paid to intangible assets with the largest

component being the brand. This chapter will explore the various theoretical and empirical facets

of rebranding, its aims, justification, and contribution to shareholder maximisation.

2.2 Definition of Rebranding

According to www.wikepedia.com (2007), rebranding is defined as the process by which “a

product or service with one brand or company or product line affiliation is marketed or

distributed using a different identity”. The definition conspicuously tells us that a prior

developed brand experiences a change in identity. This assertion is further strengthened by

D’Alessandro (2001) when he refers to rebranding as involving major changes to the brand’s

logo, image and its marketing strategy and themes.

This shedding off of the original identity for new skins is intended to portray a new corporate

image as well as assist companies in repositioning themselves both in the eyes of the market and

its stakeholders. The definitions just highlighted however seems to overlook that in practice

rebranding may merely involve superficial changes.

Van Reil (2001) defines rebranding as a strategically planned process implemented methodically

with a view of maintaining a favourable reputation of the company to its stakeholders. This is

achieved if the corporate brand manages to send positive signals to its stakeholders.

The conceptualisation by Van Reil (2001) that the vehicle for sending out signals is through a

corporate brand is not fully exhaustive of the factors that may also act in this capacity. Other

factors such as the dividend policy are also signalling vehicles. Product and subsidiary brands

can also be of great significance for the process of corporate rebranding when being brought into

some connection with the corporation as a whole. To fully grasp the corporate rebranding

concept, it is essential to fully understand what a brand is.

2.3 What is a Brand?

Branding is a strategic business decision that influences all other operational elements and its

success. As defined by Kotler et al (2002) a brand is a name, term, sign, symbol, design or

combination of these characteristics meant to identify the goods or services of one seller and

differentiate them from those of competitors.

The afore-mentioned definition brings out the critical elements of branding. A brand is a

symbolic representation of the identity of an institution. It is critical to pay attention to a brand in

the marketing of financial services. This is essentially so because a brand as stated in Kotler et al

(2002) differentiates goods and services from those of competitors.

The definition of a brand is further elaborated by Keller (2003) where reference to a brand is said

to be aiding in the marketing and identification of a product and publicly distinguish a firm or

part of is service from all else. Keller’s definition does not concentrate on the physical attributes

of a brand but views it from its identity distinguishing ability.

2.4 Characteristics of a Brand

A company would be making a fatal mistake by only treating a brand as a name. It is rather a

more complex symbol that possesses certain characteristics. Gooros (1990) writes that a brand

should possess up to four levels of meaning:

 Attributes-a brand brings to mind certain product attributes

  Benefits-consumers do not buy attributes, they buy benefits. Therefore attributes must be

translated into functional and emotional benefits

 Values-a brand can say something about the buyer and seller’s values

 Personality-a brand projects personality

This view illustrates that a brand should do more than just be for identification, it should create a

deeper level of meaning with the consumer even at an emotional degree. This is even more

crucial in the marketing of financial services where companies due to the similarity of products

offered, need to pay attention to their corporate brands. The development of brand characteristics

can foster greater brand loyalty.

2.5 The Value of a Brand

Globally the value of a brand is now being accorded more attention. Brand names have evolved

to become one of the biggest assets in a company. The UK Financial Times Report (2004)

reinforces this when they report that the past 25 years have witnessed a shift between the balance

of a company’s tangible and intangible assets. It attributes 70 percent of a company’s value to the

intangible assets, the largest being usually the brand. Against this background a Finance Manager

is also affected by the strength of his company’s brand in his quest to maximize shareholder

wealth maximisation.

de Mooij (1994) adds weight to the relevance of a company’s brand in determining its value

when he writes that a company’s stock price represents more and incorporates brand equity. He

mentioned that when a company’s brand is tarnished, the change in brand equity can
significantly affect its stock price.

This assertion indicates that there is now a paradigm shift in company management from merely

viewing a brand as a marketing vehicle. It is now the ambassador of corporate image which even

in finance is incorporated in a company’s market share value.

2.6 Brand Equity

The brand value a firm possesses is represented by what in academic circles is known as brand

equity. The overall aim of branding decisions as agreed by many scholars is to create an identity

for the product or service that adds value to the customer.

Aeker (1991) defines brand equity as a set of assets and liabilities implying that it results in the

future economic flow of benefits or obligation as a result of past events. The definition does not

clearly identify the link between the asset or liability nature of brand equity and the brand’s

identity.

Kotler et al (2002), provides a fuller perspective when a brand is said to be reliant on the extent

to which it has captured brand loyalty, name awareness, perceived quality and other assets such

as patents, trade marks and channel relationships. This shows that the development of brand

equity requires brand awareness. Brand awareness according to Kurtz (2002) is primarily

developed through the use of advertising and promotion of the brand name. It will also be

essential to provide consistently high service for an institution to build its brand equity.
The development of brand equity is mentioned by Drummond et al (2002) as resulting in either

the consumer showing greater brand loyalty or being willing to pay a premium price for a

product. This phenomenon will incredibly assist in the pricing of financial services as they will

draw inspiration from the strength of their brand.

2.6.1 Measuring Brand Equity

Many authors refer to brand equity as the in-built value of a brand. There has not been significant

academic writing to suggest how brand equity can be measured. Kotler et al (2002) concedes this

upon mentioning that brand equity’s measurement is difficult and this leads to most companies

not listing it on their balance sheets.

Brand equity is often seen as going beyond physical elements and symbols; it is defined in

economic terms. Accounting practice also recognizes brand equity by compelling firms to put a

value on acquired brands on their balance sheets through the International Accounting Standard

(IAS) 38 declaration (Well et al, 2006). The recognition that brand equity contains value is

highlighted by Well et al (2006) as a requirement of IAS 16. An intangible asset is defined as an

identifiable and non-monetary asset without physical substance (IAS 16.1.3 in Well et al, 2006).

Accounting for brands may pose a challenge to corporations, but given the recent mergers and

acquisitions trend in the global financial sector, assessing brand worth will be useful.

Management may see the link between the money spent on acquiring a brand and the value

created. This is even more crucial if the institution went on to rebrand.

In reference to the afore-mentioned point, Well et al (2006) writes that according to IAS 16.3.2 in

a business combination, an acquired intangible asset may only be recognized as an asset if it can

be measured reliably. While there may not be general consensus about how to measure brand

equity, the recognition that a brand has value is accepted by many scholars.

2.7 Overview of Rebranding

The model below summarises the rebranding process:

Figure 1: A model of The Rebranding Process

Rebranding Factors Rebranding Goals Rebranding Process

Employees’ Culture

Change in Ownership Reflect a New Identity

Structure (Mergers and

Acquisition)

Change in Corporate Internalisation

Strategy (Divestment) &

Externalisation

Change in External

Environment (legal

condition)
Change in Competitive Create a New Image Stakeholders’ Image

Position (Outdated Image)

Source: Muzellec L (2004), Corporate Rebranding: Transferring or Destroying Brand Equity,

emeraldinsight-journals.com

The rebranding process adopted from the writings of Muzellec et al (2004) depicts a summary of

the factors that may lead an organisation to seek a ‘make-over’. However, the model only

assumes rationality of the rebranding firms implying that some of the factors may not be

addressed by the model. The goals are also outlined and mainly classified into two, that is, to

reflect a new identity and to create a new image. By doing this, the model over simplifies the

goals as they may also be other motives such as disposing negative brand equity. Finally the

process of rebranding is put into perspective and highlighted as drawing inspiration from

employees’ culture, internalisation and externalisation and finally stakeholders.

2.8 Rationale for Rebranding

The overall justification for rebranding as given by Stuart (2004) is to send a signal to the market

place and to stakeholders that something about the organisation has changed. Rebranding would

be an exercise in futility if the organisation does not really have anything new to say. Effective

communication at the time of change is essential otherwise rebranding will become what

Dowling (1996, p.10) called “the premature signaling trap”. The reasons for rebranding emanate
from the circumstances that would have influenced the decision to rebrand. The reasons are

examined below:

2.8.1 Mergers, Acquisition and Divestiture

Koku (1997) asserts that mergers, acquisitions and divestitures are frequently pressing reasons to

rebrand as the old names, logos and slogans are usually inappropriate. Dickens (2003) concurs

with this view by stating that the history of financial services is one of a continuous trend

towards greater concentration towards a smaller number of companies. Empirical evidence in the

late 1990s to early 2000s saw a heavy wave of merger activity which culminated into rebranding.

Citicorp, an American bank merged with Travelers Group to form Citigroup ranked the second

largest bank in the world in 2000. The declining fortunes of banks facing increasing competition

from the lending arms of corporations resulted in a major shuffle of the top 25 banks in the

world. In 1989, no fewer than 17 of the top 25 banks were Japanese compared with only nine in

1975. In the United Kingdom, Midland Bank was taken over by HSBC and incorporated into its

corporate brand (Lomax et al, 2006) and this illustrates that companies taken over are often

assume the name of acquirer.

However, the reasons for rebranding as influenced by mergers and acquisitions seem not to

consider the effect of adopting the corporate brand of the superior partner and thinly assert that it

is inappropriate without elaborating why.

2.8.2 Shifts in the Market Place

Stuart (2004) attributes corporate rebranding endeavors as influenced by changes in the market
place caused by rivals who have merged, acquired or divested, new competitors and shifting

economic or legal conditions. An analysis of this suggests that the company would be aiming at

strategically positioning itself in the market as a defensive strategy against the actions taken by

its competitors.

2.8.3 New Focus or Vision

One of the major drivers for rebranding may be caused by a shift in the focus or vision of a

company. This could be caused by one or both of these factors. Brieley (2002) cites the arrival of

a new Chief Executive Officer (CEO) as a factor that influences new focus. He further suggested

that new CEOs usually arrive determined to make their mark and nearly always effect in

organisational changes, especially the outward appearance of the company by rebranding. The

shortcoming of focusing on rebranding to change a company’s vision is that it may merely be

cosmetic surgery if the more difficult structural problems are not addressed.

2.8.4 Growing Importance of Capital Markets

A strong corporate brand and favourable reputation is regarded as a prerequisite to succeed in the

global financial marketplace. This point was elucidated on by Fombrum (1996) when he wrote

that a strong corporate brand image has a positive effect on the stock price. With a corporate

brand, the financial community associates future expectations. Institutional investors and

financial analysts are seen as most important within the financial community, the latter take that

particular position because of their strong influence in the media. However it is essential to note

that in practice there are other factors that may influence the value of a company’s shares such as

company performance among others.

2.8.5 The Need to Create Synergy with Other Brands

Corporate values become increasingly important as consumers become more critical. Fombrum

et al (2000) writes that corporate values like integrity, financial solidity, social and environmental

responsibility are therefore also important signals for consumers. Apart from strengthening

product brands through corporate values there is a strong tendency to strengthen the corporate

brand by creating associations with its product brands. This trend is due to the fact that a

company’s products and services are an important dimension influencing corporate reputation

(Fombrun et al, 2000). However, rebranding because of this may lead to marketing managers

fearing that their product brands may become diluted or weakened by the rebranding exercise

which will assume a dominating image in the minds of the customers than the company products

themselves.

2.8.6 Outdated Image

Another motive for rebranding in the financial services industry is what Stuart (2004) attributed

to as driven by the need to dispose an outdated image. This would arguably lead to an improved

market reach and industry visibility of the institution (Fombrum, 1996). The concepts brought by

the writings of these authors seem to suggest that a brand possesses a life cycle in which it has a

stage when its recognition declines and becomes outdated. This is however contrary to some of

the empirical evidence which has seen long-established brands like the multi-national financial

services giant, Old Mutual, retaining their market leadership.

2.9 Common strategies for rebranding

The common strategies are outlined in the following paragraphs:

2.9.1 The Name Change

An organisation communicates with its stakeholders primarily through its name. Changing the

name of an organisation is the most risky rebranding strategy. Marguiles (1997) wrote that for a

name change to be successful, a company needs to have an idea of what it wants to achieve.

Kellaway (2002) argues that name changes are almost always bad and inappropriate for an

existing company. Changing a name may be regarded as a facilitator for a change in image.

Brand images may change without a new brand name, equally a new name may not always result

in a changed image.

The research carried out by (Lomax et al, 2006) indicates that changing name is a sizeable and

complex process, which contains challenges in articulating the values of the organisation, and

offers substantial potential value in terms of new knowledge generation.

To effectively rebrand using a name change it is essential that the financial services provider

takes into account whether this will result in a positive image. Name changes may tend to be bad

because the old image of the organisation may dominate the new name. The name change

becomes intricate when two or more companies merge and both want their names to be

incorporated in the new structure resulting in long and boring names. An example of this is the

name change of two American banks Chase and JP Morgan which merged to become Chase

Manhattan Bank (Dicken, 2003).

2.9.2 The Logo Change

Symbols are particularly important because they can resemble and look like a corporate identity.

Dowling (1996, p.10) writes that “abstract logo designers may seek to have the organisation’s

history embedded on the symbol”. Napoles (1998) adds that finding a good abstract design that

stands out from the crowd, gives the appearance of power, evokes a strong positive emotional

response and a sense of experience difficult to achieve.

A logo however, in essence is a symbol and may be perceived differently than the message it is

intended to convey to its stakeholders. Dowling (1996, p .10) referred to the “cosmetic identity

trap”. This implies that if there is no apparent reason for the logo change, it will go unnoticed

and thus be barely cost effective.

Henderson et al (1998) found and recognised that logos possess natural, harmonious and

moderately elaborate characteristics. Organisations may thus need to exercise caution in using

logo changes because it present severe financial losses if it goes unnoticed.

2.9.3 The Slogan Change

The sustainability of a slogan has an effect in making or breaking an organisation. An

inappropriate slogan will inevitably be ridiculed. Stuart et al (2004) stated that a slogan reflects

the ideal positioning strategy of the corporate brand. The difficulties with this present themselves

in finding the one that will appeal to the stakeholders in a world flooded with slogans. The use of

a slogan change as a rebranding strategy has a shortcoming in that slogans are constantly

changed in practice with relative ease and often goes unnoticed resulting in the enterprises

retaining their identity.

2.10 Rebranding: A Case for ABSA (South Africa)

This study investigates the approach taken by Absa, South Africa’s largest bank, in the

development of the corporate brand they inherited after undergoing a rebranding exercise.

Absa (Amalgamated Banks of South Africa) consisted of two major banks, Trustbank and

Volkskas, and two former building societies, Allied and United. Allied opened its doors in 1888,

and United in 1889. Volkskas opened its doors to the public in 1934 and Trustbank in 1954.

Thus, these four organisations were well known and traded under these names for decades. On

October 26, 1998, a new Absa replaced Allied, Trustbank, United and Volkskas. In a single move

more than 300 years of combined brand equity was scrapped.

The Absa group was the biggest of South Africa’s banks, but definitely not the best (Jaffe,

1998). It was believed that the consolidation of the brands would enable the group to shift its

focus away from the individual brands to the specific requirements of the segments in the target

market. It was done with a view to significantly improve their client service and enable them to

deliver the right product to the right customer at the right price (Abacus, 1998).

2.10.1 Rationale for combining the four brands into one

Daffey et al (2002) put forward various reasons for the combining of the four brands into one.

They can be summarised as follows.

Cost Benefit

Absa had four brands not much differentiated from each other, all using separately branded
letterheads and stationery. A large physical infrastructure or branch network existed to support

the four brands. In some small towns all four branches were present creating overexposure.

Attempts had been made to differentiate the brands by segment, even though no multibrand

strategy really existed, for example, Allied clients were seen as being mass market and Trust

Bank focused on building relationships.

On closer investigation of the four brands, each held a percentage of the same type of clients

across all segments. Advertising and Marketing spending was split up across the four brands.

Competition was found between the four brands often at the expense of the Group and customer

(market share was decreasing: approximately 50 per cent of credit card business was lost over

three years – this was partly attributed to the then existing brand strategy). The information

technology systems were complicated by the four brands and the different product mix of each

brand. Processes and procedures between the different brands were different.

The belief therefore was that by creating a single brand, economies of scale could be achieved;

advertising and marketing spending could be better focused, processes and procedures could be

made efficient and streamlined, Information Technology spending would be reduced and a more

appropriate and smaller product mix could be developed. One of the biggest cost benefits was the

branch network infrastructure that could be rationalised. It would also allow the Group to focus

on service.

Reaching a changing South Africa.

The Absa that was created in 1992/1993 had a history and was not favourably received by the
new government within South Africa. When tenders were made for government accounts in

1994, Absa lost all existing government accounts. The mass market also had previous negative

perceptions of the various brand names within the Absa stable.

With the amalgamation in 1992/1993, the Absa brand did not develop and could not compete

with the other major financial services brands within South Africa (Daffey et al, 2002). This

merger was therefore seen as an opportunity by some to create a different image and identity for

Absa, that is, some saw it as an opportunity to break with the past. It was also seen as an

international trend and therefore the natural thing to do, that is, to go ahead and rebrand.

2.11 Effectiveness of Rebranding

Before embarking on a financially demanding rebranding exercise, considerations about its

effectiveness need to be closely examined. McGurk (2002, p.6) suggests that the critically

important question is “what will happen if we do not make this change?”. There would not be

much justification for rebranding if the answer to this proves to be nothing. Koku (1997) offers a

solution to determine whether rebranding will be effective when he suggests that the

fundamentals of the organisation need examination to determine if the change will be an

effective strategy for the organisation. This suggests that to be effective rebranding needs to be

more than just a change in identity but also in business fundamentals that reflect the positive

change the organisation has gone through.

To be effective rebranding should create a personality for its brand by determining the most

desirable characteristics required by the banking public for a financial services corporation
(Abratt, R. 1989). The organisation’s communication should be focused on generating desirable

management and employee behaviour that should be able to portray the change cemented by a

rebranding process.

2.12 Summary

This chapter has been extensively remarking on the theoretical and empirical underpinnings

surrounding the aspect of rebranding. It provided the definitions of rebranding and the

underlying principles written by academic authorities. A critique of the writings of various

schools of thought was done and their ideas conceptualised with the researcher own analysis of

the literature on corporate rebranding.

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction

This chapter will focus on the research methodology used during the study. It covers the research

design, research population, research sample used, method of collecting data and the instruments

utilised. In the ensuing discussion, the data presentation and analysis plan is laid out.

3.2 Research Design

Kahn et al (1993) defines research as a master plan specifying the methods and procedures for

collecting and analysing needed information. The approach of this research was qualitative

because it dealt with information that was too difficult to quantify such as value judgments.

Initial exploratory research was conducted to clarify the nature of the problem. A descriptive

research focusing on attempting to describe accurately the variables that are in the problem was

also carried out. Explanatory research which went further than just merely describing, explained

the variables investigated by the research carried out.

3.3 Research Population

Population refers to the elements targeted by the study. The inclusion of all members would have

made the study a census. Due to the time constraint involved, the population was sampled. The

population of the study were the institutions in Zimbabwean financial sector.

3.4 Research Sample

A sample is a finite part of statistical population whose characteristics are studied to gain

representative information about the whole population. In this study it was not feasible to carry

out a census and therefore a sample was conducted. All rebranded institution in the scope of the
study were targeted in the research and for the remaining elements, a simple random sampling

method giving each member of the population equal opportunity was used. The reasons for

sampling were that sampling required less commitment of financial resources than a census. The

time frame of carrying out the survey made sampling easier thus improving the reliability of the

findings.

3.5 Data Collection Method and Instruments

Data was collected utilising primary and secondary data methods. The instruments that were

used included personal interviews, questionnaires and secondary data sources.

3.5.1 Primary Data

This form of data is collected through on-site research of targeted population. Although primary

data can be costly, difficult to collect and time consuming, it was adapted to the research problem

and generally provided the most recent data possible.

Advantages of Primary Data

 Primary data is more reliable because it is based on first hand information

 Relevant data can easily be collected and thus is less time consuming

 Accessibility is easy because the researcher will be having their own targets

Disadvantages of Primary Data

 Information may be biased because of respondent influence

 There may be a low response rate

A combination of questionnaires and personal interviews were conducted so as to seek

clarification on unclear issues and observe non-verbal communication. The data collection

instruments were designed not to take too much respondents time yet maintaining their effective

probing role.

The methods for gathering primary data used in this research were interviews and questionnaires.

Interviews

An interview involves a discussion between two or more people in a formalized, structured and

guided manner. The questions that were asked were meant to provide answers to the research

questions. Interviews were directed to Marketing Executives, Treasury Management and/or

Finance Managers of the sample population.

Advantages of Interviews

 Minimises the risk of misunderstandings since clarifications can be immediately sought

 Non-verbal communication allows the true picture to be deduced

 Respondents cannot rehearse answers to give to the researcher

 Visual aides can be used

Disadvantages of Interviews

 Interviews are time consuming

 They are resource intensive

 May be biased because of strong interviewer influence

The use of short and yet precise questions were used in order to make the length of the interview

reasonably short. A pilot survey amongst the researcher associates was employed to minimize

interview bias. Telephone interviews were also undertaken as a way of overcoming the financial

costs of traveling to every respondent

Questionnaires

These are data collection instruments that contain a list of questions the researcher intends to ask

a respondent. The questionnaires used were self-respondent questionnaires completed by the

respondents.

Advantages of Questionnaires

 Gives respondents time to gather facts

 Bias and error influenced by interviewer is reduced

 Convenient for obtaining information for larger population

 Uniformity across measurement situations is provided

Disadvantages of Questionnaires

 Questions are subject to different interpretations by respondents

 May be answered by untargeted people

An attempt to make questionnaires to be clear was done by carrying out a pilot survey to

ascertain the interpretations the questions generated and thus structur them in a manner that
attracts uniform interpretation. A passionate plea was made to the targeted respondents to

personally respond to the presented questionnaires.

3.5.2 Secondary Data

Secondary data refers to data previously collected but not specifically for the purposes of the

study. Examples include company reports, websites, business publications, and surveys amongst

others.

Advantages of Secondary Data

 Provides unbiased data

 Cheap and easier to gather

Disadvantages Secondary Data

 Data is historical thus may not be relevant to current and future developments

 Relevance to research may be difficult to establish

An attempt was made to gather the most recent data covering the scope of the study. Data was

collected based on its relevance to resolving the research questions and gaining an insight to the

problem statement.

3.6 Data Presentation and Analysis Plan

The collected data will be presented in the form diagrams and descriptive narration. This will be

aimed at aiding in the interpretation and analysis of the collected data. Data presentation and
analysis involves the examination, categorising, tabulation and the recombination of data. The

main objective of data analysis is to resolve the research questions and provide a basis for

drawing recommendations and conclusions on the study.

3.7 Summary

This chapter highlighted the research design, research population, and the research sample

utilised in the study. The data collection methods and instruments used as well as the data

presentation and analysis plan were also elaborated on.

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Introduction

This chapter contains the findings that were made during the course of this study as guided by

the research methodology outlined in the previous chapter. The gathered data was meant to

provide an insight into resolving the research questions surrounding the rebranding phenomena

in the Zimbabwean financial sector. The chapter encompasses the presentation of the data
gathered, its interpretation and analysis.

4.2 Response Rate

The instruments employed in the collection of data were questionnaires and interviews. The

collection of data using questionnaires as outlined in the previous chapter was on a drop-and-

pick basis and the interviews were mostly as per schedule. The questionnaire response rate which

measures the degree of success in getting responses is outlined in the table 1 below.

Table 1: Questionnaire Response Rate

Department Number Dispatched Responded To Response Percentage

Marketing 12 9 75 %
Finance/ Treasury 12 7 58 %
Total 24 16 66 %
Source: Raw Data

There were twelve targeted financial institutions selected based on a combination of judgmental

and simple random methods which included all the rebranded and some non-rebranded

institutions. In the twelve institutions targeted, two questionnaires were administered with one

going to the Marketing Manager and the other to either the Finance or Treasury Manager of each

organisation. The 12 questionnaires distributed to the Marketing departments had 9 responded to,

representing a 75 % response rate. The questionnaires that were directed to Finance or Treasury

Heads had 7 responded to, accounting for a 58 % response rate. In total, questionnaires generated

66 % response rate. The presence of non-responded questionnaires emanated from pardons of

being busy and the continued unavailability of the targeted respondents. Table two below

outlines the response rates of interviews carried out.

Table 2: Interview Response Rate

Department Number Requested Granted Response Percentage

Marketing 24 16 66 %
Finance/ Treasury 12 5 42 %
Total 36 21 58 %
Source: Raw Data

From the sample of twelve financial institutions, a total of 36 interviews were requested and 21

granted amounting to a total 58 % response rate. Table 2 shows that in an institution, two

interviews were sought from the marketing department and one from either Finance or Treasury

Heads. The moderate response rate was explained by incessant pardons of busy schedules,

unwillingness to divulge ‘confidential’ information.

4.3 Data Presentation, Interpretation and Analysis

The concepts noted below represent the findings and subsequent interpretation and analysis of

the study matter.

Effect of Brand on Volume of Business

The study revealed that organisations generally regarded their brand as valuable as depicted by

the importance attributed to it by respondents. 67 % of the respondents considered the

organisation’s volume of business as highly linked to the strength of its brand and 33 %

expressed a moderate relationship. The data collected shown revealed that most of the financial

institutions linked the strength of their brand to the volume of their business. This can be

attributed to the fact that financial services firms offer intangible and undifferentiated products or

services. This therefore implies that an organisation’s image, whose ambassador is its brand,

plays a pivotal role in influencing customers to be associated with particular financial

institutions.
However, there are other factors other than an organisation’s brand that may affect an

organisation’s competitive standing. The Zimbabwean context is characterised by unequal access

to financial services, that is, financial exclusion. This leads to some institutions obtaining some

of their customers only because they have branches at convenient locations. This is especially

applicable to rural areas where most financial institutions do not have branches and the ones that

do, have become the banker of choice because of convenience rather than the strength of their

brands.

Motives for Rebranding

The study also sought to establish the driving factors which led to six holding companies

incorporating eleven subsidiaries to resort to rebranding. The corporations that rebranded for the

scope of the study were ZB Holdings, CBZ Holdings, ZABG, Kingdom Financial Holdings,

Nicoz Diamond and FBC Holdings. The table below shows the institutions that rebranded and

when they did so.

Table 3: Rebranded Institutions

Company Name Month and Year of Rebranding

Nicoz Diamond February, 2003
FBC Holdings November, 2004
ZABG January, 2005
CBZ Holdings April, 2006
Kingdom Financial Holdings May, 2006
ZB Holdings October,2006
Source: Raw Data

Figure 2 given below illustrates the reasons that were given for engaging in rebranding exercises

by the institutions listed in table 3.

Figure 2: Reasons for Rebranding

Mergers and
Acqusitions
17%
33% Shifts in market
place
17% Outdated Image

33%
Other Reasons

Source: Raw Data

Shifts in the market place and mergers and acquisitions accounted for 33 % respectively of the

reason for rebranding while 17% cited an outdated image. The remaining 17 % attributed their

rebranding to regulatory factors as in the case of the Zimbabwe Allied Banking Group (ZABG).

Mergers and acquisitions are generally viewed with skepticism founded in history more than

anything else. The majority of consolidations that happened involved weak institutions with a

history of profit difficulties and/or corrective regulatory intervention such as curatorship and

heavy rescue packages from the central bank. Examples of such institutions involved in mergers
and acquisitions are ZBS now FBC Building Society and Intermarket Building Society.

Inevitably the history of the parties involved in mergers and acquisitions present challenges of

the fusion of different corporate cultures and thus demands that a new culture be developed when

rebranding is done.

Shifts in the market place could largely have been a response to threats on market share

presented by competitors who would have merged, acquired or rebranded thus developing a new

competitive position. Institutions that rebranded because of this factor were Kingdom Financial

Holdings and CBZ Holdings.

The feeling that image is outdated cited by some of the rebranded institutions stem from the need

to continuously possess a relevant and modern image in the market. The change of Zimbabwe

Financial Holdings to ZB Holdings was one such move. However the pitfall of this strategy is

that image cannot be quantified and is therefore subjective. This implies that rebranding may be

an unnecessary cost if in actual fact the market did not perceive the brand as outdated.

While other factors may have been indicated for rebranding, it can be noted that it was only

carried out by the domestic owned financial institutions. The major reason for this may draw its

roots in the loss of confidence the banking sector, particularly the indigenous institutions,

experienced after the 2003/2004 banking crisis. To repair their reputational risk grading in the

market, some of the rebranded financial institutions rebranded.

The motives cited do not fully justify the rebranding exercises undertaken in the Zimbabwean
financial sector. It is imperative to consider what would happen if an organisation does not

rebrand. It appears that the compelling reason to rebrand was driven by the need to diversify

financial institutions’ businesses so as to be able to stay afloat of the turbulent operating

environment.

Effect of Rebranding on Market Position

According to a survey by the Global Credit Rating Company in the Zimbabwe Independent

(August 2006), the five largest banks Standard Chartered, Barclays, Stanbic CBZ, and ZB still

controlled 67 % of the industry assets. They alleged that the industry’s big five continued to gain

deposit market share increasing 3.5 % to end 70 % during the 2005 financial year. Zimbabwe’s

largest banks are however said to have receded 1 % in asset (advances) market share during

2005. The increase in the deposit market share of the financial sector’s traditional leaders can be

attributed to their status as a safe-haven for deposits. This is heightened by that these institutions

were not heavily shaken by the bank failures of 2003/2004. Therefore this enhanced their

reputation as secure places for making deposits.

The decrease of 1% in asset market share by the traditional institutions is explained by the

decline in the market share of advances. This could be emanating from the comparatively

conservative stance they took in advancing credit because of the deepening Zimbabwean

economic crisis which could have increased credit default risk. Their majority foreign share

holders could have played a major role in influencing the conservative stance as a way of

mitigating wealth losses that can result from credit default. The domestic institutions actively

sought to exploit this opportunity by presenting themselves as more accommodating in granting

loan facilities thus explaining their less conservative stance.

Service Delivery Implications of Rebranding

The investigation on the service delivery process whose parameters of measurement were the

rate of new customer acquisition and retention of existing customers showed an improvement as

depicted in figure 3 below.

Figure 3: New Customer Acquisition And Customer Retention Trends

P e r c e n ta g e %

100%
80%
New
60% Customers
40% Customer
Retention
20%
0%
2003 2004 2005 2006
Ye a r

Source: Raw Data

The rebranded institution’s averaged new customer acquisition trend from 2003 to 2006 shows a

steady increase although it dipped to in 2004 to 12 %. The increase was from 15 % in 2003 to 26

% in 2006. Customer retention has also had a steady increase from 72 % in 2003 to close at 82 %

in 2006 although it dipped to its lowest of 61 % in 2004.

All respondents cited high volumes of new customers and dramatic improvements in the

retention of their customers as result of rebranding. The respondents also cited a revamp of their

systems and the repackaging of their products according to the dictates of their new images

The noted improvements in the service delivery process can be attributed to the excitement that
is generated with being associated with a new thing offering a greater promise of value.

However, the implied service delivery process improvements largely could actually be driven by

the desire to gain back market share that could have been knocked off by the banking turmoil of

2003 and could have been achieved without engaging in corporate rebranding.

Impact of Rebranding on Market Price

A factor also investigated was the effect of rebranding exercises on shareholder wealth

maximization as mirrored by the market share price of the institutions researched on. Below is a

list of the overall and sector ratings of banking institutions on the Zimbabwe Stock Exchange

(ZSE) for the year 2006.

Table 4: Overall and Sector Performance of Listed Banking Sector Institutions

Overall Sector
FBCH 1 1
Kingdom 6 2
ABCH 19 3
Barclays 28 4
CBZ 43 5
NMB 47 6
ZBFH 71 7
Source: Zimbabwe Independent (2007), Zimbabwe Quoted Companies Survey, May pg 18

The banking sector on the ZSE consists of 10 counters, eight of them currently trading. Barbican

and Trust were suspended following the collapse of their commercial banks. CFX was also under

suspension but has had its license renewed. Out of a total of seven, four financial institutions

rebranded representing 57 % of the listed banking counters. The table above expresses mixed

performance for the rebranded financial institution. The top two performers in the banking

counters in 2006 rebranded as well as those ranked fifth and sixth.

The best ZSE performer in 2006 achieved by FBC, the rebranding pioneer in the post banking

crisis era and Kingdom’s 6th position is not complemented by the 43rd and 71st ( the overall

worst), for CBZ Holdings and ZB Financial Holdings respectively.

The largely positive impact rebranding has had on the share prices of institutions shows that the

financial community associates their future expectations on the strength of the corporate brand.

The improvements in the share prices reveal that corporate rebranding possesses the ability to

influence share prices since it acts as a signaling vehicle to a company’s stakeholders as

articulated by Van Reil (2001). However this positive influence on the share price should be

permanently sustained and lead to the share prices reflecting their true value so as to justify the

rationale of rebranding.

An analysis of how the listed rebranded institutions fared in the equities market reveals mixed

fortunes. These performances suggest that other fundamentals were taken into consideration by

investors before being lured to invest in the share of the rebranded institution.

Ability Of Rebranding To Change The Outlook Of A Company

Enquiries and studies into the ability of rebranding to change the nature of the financial

institution as articulated by their strategy and market position are summarized in the chart below.

Figure 4: Influence of Rebranding in Changing Outlook of A Company

 29% High
43% Moderate
Low

14% None

14%

Source: Raw Data

The findings reveal that 43 % of the interviewed respondents do not link rebranding to the

change in the overall strategic direction of a company. It is believed by 29 % of the respondents

that rebranding can heavily influence the strategic change of a company. Moderate and low

views of rebranding leading to a change in the nature of a company accounted for 14 %

respectively

The dominating view that rebranding does not automatically imply a change in the nature of a

company is supported by Koku (1997) in his assertion that the fundamentals of the organisation

need examination in the determination of the success of rebranding. The changes meant to be

communicated by rebranding usually fail to bear fruit if an entity’s operational processes,

especially the weak ones, are retained. Backing rebranding with greater capitalisation, enhanced

synergies to withstand shocks and greater potential for profitability, cements the positive signals

that the firm will be attempting to convey of itself as a reinvented business and thus initiates a

change in strategy.

4.4 Summary
In this chapter, the response rate and the subsequent presentation of the findings of the study

through the use of tables, pie charts, bar graphs and description was given. The interpretation and

analysis of the findings was also carried out.

CHAPTER FIVE: SUMMARY, CONCLUSIONS AND

RECOMMENDATIONS

5.1 Introduction

This chapter will be premised on summarising what the study encompassed. It will also draw

conclusions about what the research has made the author to believe based on the findings of the
study. Recommendations will then be made to the financial services players about the impact of

rebranding to them and the chapter will wind up by suggesting grey areas that may be taken up

for future study.

5.2 Summary

The research started of by exploring the background that has contributed to the brand wave that

has besieged Zimbabwe’s companies with financial institutions being the focus of the study. It

sought to establish the justification for engaging in financially demanding rebranding exercises

instead of reinforcing the existing brand. The significance of the study to all stakeholders was

highlighted and the assumptions of the study noted.

The theoretical and empirical facets of rebranding were outlined and critiqued. The underlying

concept of branding, its characteristics and its value as conveyed by brand equity were

elaborated on. The study went on to explore the rationale behind corporate rebranding. The

common rebranding strategies utilised were brought into perspective and analysed organically. A

comprehensive analysis of the effectiveness of rebranding in improving the fortunes of

businesses based on the theoretical and empirical evidence sealed the literature review of the

study.

An insight into the research methodology adopted by the study was discussed. It was specified

that the approach of the study as articulated by the research design, was qualitative in nature. The

methodology chosen was meant to provide the most reliable information given the difficulty to

quantify data in the study. A research sample of twelve financial institutions was established with
the study relying on the collection of information utilising primary and secondary data methods.

One of the major findings of the research was that rebranding is not merely re-inventing a

company’s logo but is a strategic intent meant to communicate to its stakeholders that something

about the organisation has changed. However, it was found that considerations of what would

happen if a company does not rebrand are frequently ignored. The study shows that rebranding

preceding mergers, acquisition and divestiture of organisations, implemented in a holistic manner

tend to more successful than imitation driven ones.

5.3 Conclusions

The research was exceedingly enlightening and led to the realisation that an organisation should

first explore the alternatives available in enhancing its image before choosing to rebrand because

of the inherent risk of failure to communicate the intended change to stakeholders. The study

revealed that an organisation’s brand, particularly that of financial services providers, has a

strong impact on the performance of business.

The findings of the study suggest that Zimbabwean financial institutions were mainly driven to

rebrand by the need to instill market confidence in them. The mini-banking crisis that hit the

financial system in late 2003 meant that the affected institutions had to restructure and strengthen

their capital bases in order to avert future collapse. The focus then became to rebrand so as to

convey a positive change to the organisation’s stakeholders, especially its customers, investors

and employees.
The research has shown that the market share price is not easily influenced into an upward surge

by rebranding alone, but other factors such as profitability and the stability of the institution are

brought into perspective.

5.4 Recommendations

The findings of the study have had a heavy hand in influencing the recommendations given in

the ensuing discussion.

Financial institutions are inherently sensitive to public image. This creates a need to confront the

deeper structural issues facing the firm before engaging in a corporate rebranding exercise in

order to avert failure in the long-term.

It is imperative to closely consider, when contemplating rebranding, the attitude of key

stakeholders to change. The major question to be answered by the organization is whether its key

stakeholders will be positive about the change. The key stakeholders will include the institution’s

customers, employees, investors and the regulatory authorities. Rebranders need to engage with

key stakeholders, and work with them in order to develop and embed new organisational

identities in the market place. Meaningful consultation with stakeholders and thoughtful

integration of people into the process of developing the new brand are requirements for success.

The findings reveal that rebranding is most appropriate and successful where a business is

merging being acquired or diversifying its operations. This will be because rebranding would

provide a platform to fuse the different corporate cultures and create a new one in line with the
vision of the rebranded institution. For corporate branding to achieve desired outcomes,

integration in a business’ organisation activities is most promising. This does not necessarily

imply that all functions must be integrated in one single department. Depending on the corporate

culture and philosophy this could be counterproductive, particularly if the corporate culture is

one of entrepreneurship and autonomy. The combination of centralisation and team organisation

would work best in order to achieve good co-ordination and desired results in a rebranding

exercise.

In making changes to corporate identity, continuity and consistency are key notions to bear in

mind. Research is a vital part of change and ensures its success. It should not be done for trivial

reasons such as the appointment of a new Chief Executive Officer.

It is imperative for an organisation’s stakeholders to be able to see beyond a new coat of paint to

be able to discern whether rebranding is really conveying a positive change about the

organisation. A successfully rebranded institution should be able to deliver more benefits to its

stakeholders and be able to have improved its service delivery process in a cost effective and

efficient manner. Rebranding is not merely about changing the brand appearance but making the

more structural changes that revamp an organisation and make it the preferred choice in an

increasingly competitive business environment.

5.5 Suggestions for Future Research

The grey area that still need to be put under academic scrutiny is whether rebranding is creating

or destroying the much valuable brand equity that image sensitive businesses such as financial
institutions are heavily dependent on.

There is need to examine the value that is created by a rebranding exercise and its role in the

creation of a strong brand that can instill long term market confidence in order to shield the

institution against the inherent risks that the financial sector faces.

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APPENDICES

APPENDIX A: COVER LETTER

Midlands State University

Department of Banking and Finance

Private Bag 9055

Gweru

To Whom It May Concern:

RE: QUESTIONNAIRE TO SOLICIT INFORMATION

I am a final year student studying for a Bachelor of Commerce Banking and Finance Honours

Degree at the Midlands State University.

In partial fulfillment of the requirements of my degree program, I am undertaking a research

entitled “An analysis of the rebranding phenomena in the Zimbabwean financial sector”. I

kindly request you to respond to the provided questionnaire. All information supplied will be

treated with confidentiality and only used for the purposes of this study.

Your assistance will be immensely appreciated.

Yours Faithfully

Benson Murau Mandava

APPENDIX B: QUESTIONNAIRE

Please respond by a tick and or providing an explanation where appropriate.

Part One

General Information

Kindly provide the following details

Name of Company………………………………………………………………………….

Year of Establishment………………………………………………………………………

Product Range………………………………………………………………………………

Part Two

1. How would you define a brand?

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………………………………………………

2. How valuable is a brand to your organisation?

High

Moderate

Low

3. How would you relate the strength of your brand to your organisation’s volume of business?

High

Moderate

Low

4. What do you understand about corporate rebranding?

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………………………………………………………

5. What was the major motive behind the rebranding exercise by your organisation?
Merger or Acquisition

Shifts in market place

Out-dated image

Other (Specify)……………………………………………………………………...............

………………………………………………………………………………………………………

…………………………………………………………………………………........

6. What has been the effect of rebranding on the following factors in your organisation?

New customer acquisition

High

Moderate

Low

Retention of existing customers

High

Moderate

Low

Pricing of Products

High

Moderate

Low

Service Delivery Process

High

Moderate

Low

Explain how for above answer

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………………………………………………………………

7. Did corporate rebranding have any effect on the market value (share price) of the company?

Major effect

Moderate effect

Low effect

No effect

8. What would you say has been the major change (if any) your organisation has experienced

since rebranding?

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………………………………………………………………………………………

………………………………………………………………

9. Has rebranding by your organisation been effective? Cite reasons for your answer.

………………………………………………………………………………………………………
………………………………………………………………………………………………………

………………………………………………………………………………

THANK YOU

APPENDIX C: INTERVIEW GUIDE

1. How relevant is your organisation’s brand in the achievement of its objectives?

2. Do you consider rebranding of an organisation necessary and what are your reasons?

3. Would you consider corporate rebranding as having the ability to change the character

and nature of a company?

4. In your opinion, do you consider the costly nature of rebranding as justifiable?

5. Would you say that rebranding can signal positive change to an organisation’s

stakeholders?

6. Can the market value of a company be positively influenced by organisational

rebranding?

7. To what extent can rebranding contribute in easing funding needs of financial institutions

and becoming an attractive investment vehicle?

8. What are the advantages and disadvantages rebranding may possess?

9. In view of the pros and cons of corporate rebranding, would you consider the recent trend

by some organizations in the financial services sector as justifiable? Cite your reasons?