The UTI Bank was one of the first private sector banks which were set up after the reforms in the banking sector in India
On April 30, 2007, UTI Bank announced that the bank's board of directors had approved a proposal to change its name to Axis Bank. Nayak explained, "The name has been chosen because it is simple and crisp, transcends geographical boundaries as we seek to become a multinational bank, and connotes stability and solidity.
On July 30, 2007, UTI Bank rebranded itself as Axis Bank after obtaining the approval from its board, shareholders and the Reserve Bank of India
In addition to reassuring the customers that they would be offered the same level of service and professional expertise from the bank, the bank also clearly communicated to the customers that "We will not ask for any account details due to the name change to Axis Bank. Do not respond to any such request received through email. Please contact your nearest branch in case you receive any such request.though the change in the name of the bank was necessitated due to pressure on the bank to arrive at a decision because of the deadline on the UTI brand name, the company seemed pleased to be developing its own brand. The company felt that adopting the new name would bring definite advantages as the earlier name had a public sector connotation. The UTI Bank had always been a private bank since its inception but it was thought of as a public sector bank linked with the UTI brand.
The new Axis Bank was in a sound financial position and had a good portfolio. It had grand plans for the future too. Having raised Rs. 4.5 billion in 2007, Axis Bank would be able to start on a sound footing.The bank said that it would continue its focus on commercial banking and would also bolster its asset management business. The company planned to open branches in 450 out of the 600 districts in India
The campaign that built on the theme of identical twins to put forward this message was launched in multiple media channels including television (TV), radio, print, Internet and outdoor media. The bank also leveraged on its 2,500-odd ATM locations spread across the country to communicate the change in name. In addition to the integrated marketing campaign, the bank communicated the change in name to its customers personally well in advance. To prevent its customers from falling victim to phishers who could take the advantage of any confusion arising out of the rebranding, the bank cautioned them against responding to any email claiming to come from the bank, that asked for personal/account details of the customers.
Industry watchers said that, though there were instances of banks rebranding following a merger and acquisition (M&A) deal, this was the first instance where a bank was voluntarily rebranding itself by going in for a new name and shedding a well-recognized brand. They noted that the company was spending a huge amount of money on the rebranding exercise - more than three times its marketing expenditure in 2006. Some of them felt that by going in for the new brand name the company would lose the quasi-governmental connotation that came with the UTI brand.
Questions:
- What are the issues and challenges in rebranding a well established brand, especially in the banking sector in India
- Explain the role of marketing communication campaign in rebranding any organization.
