Standard Chartered is not HSBC. That much is eminently clear, although the 'emerging markets' bank continues to find itself defined in opposition to is massive rival.
Standard Chartered's US$75 million pitch is a case in point. Not only is the bank's marketing budget dwarfed by HSBC's $400 million spend, but its bigger rival's account review also took place on a much larger scale, involving holding companies and lasting the better part of six months.
Once the HSBC realignment resulted in J. Walter Thompson becoming the bank's lead ad agency, many observers predicted that it was only a matter of time before Standard Chartered - which currently uses JWT in a number of Asian markets - put its own business up for tender.
For some, however, conflict concerns are not the only issue driving the pitch. Indeed, many feel that the time is ripe for a complete revamp of the Standard Chartered brand.
The bank's current positioning revolves around understanding the balance between global and local. While this may have echoes of HSBC's 'The world's local bank' tagline, the premise is real enough. Standard Chartered is, in many of its key Asian markets, seen increasingly as a local bank.
The financials bear this out, with Hong Kong the bank's strongest market by far. Singapore and India also perform well, and the bank has seen steady revenue growth across most of its Asian and African markets over the last three years, even as its market share in the UK and the Americas declines.
Standard Chartered remains a UK-headquartered bank and, in this respect, it is an anomaly when it goes up against local contenders such as DBS and BEA. Despite this, it appears to have successfully communicated its local positioning. Whether the global part of the message is also being heard remains unclear.
Given this disparity, it appears Standard Chartered has to fight on two fronts: against global competitors such as HSBC and Citibank, and smaller local players. This is a difficult task and has proved the undoing of many. How Standard Chartered handles the challenge is likely to define the success of its brand going forward.
VITAL SIGNS - NET REVENUE BY GEOGRAPHY
USdollars million
Hong Kong Singapore Malaysia Other APR India
2003 $1,358 $488 $236 $682 $468
2002 $1,416 $485 $234 $572 $394
2001 $1,442 $440 $237 $529 $355
2000 $1,188 $432 $261 $514 $272
Source: Standard Chartered
DIAGNOSIS
DAVID KETCHUM, CHIEF EXECUTIVE OFFICER, UPSTREAM ASIA
Standard Chartered's brand is like a brilliant painting that the artist is still working on. Its distinctive green and blue logo is modern, clean and professional - no need for reinvention or rebranding here.
The bank's positioning of "serving the emerging nations" is distinctive, and the objective to further develop in China and India clearly reflects relevance. Standard Chartered's marketing communications has underlined the bank's local commitments, including taking on title sponsorship of the Hong Kong marathon when the event needed a patron, and later making multi-year marathon sponsorship deals in Singapore and Korea. The bank's Olympic Games' Visa card launched in India is typical of the bank's 'glocal' marketing, and the same thinking extends to a corporate social responsibility programme in Africa.
Despite these clearly strategic and orchestrated efforts, the bank has not yet matched the slickness or visibility of HSBC's 'The world's local bank' theme. Here in Asia, for example, Standard Chartered ranks sixth in the banking category in Media's Top 1000 BrandsPortfolio well behind both international and local players. Standard Chartered has done lots right so far: the next step is to push ahead beyond simple brand consistency and to a fully formed identity and personality.
PETER WILKEN, PARTNER, THE BRAND COMPANY
You're a bank; that's a bad start. Banks tend to be seen as big, rich, impersonal and arrogant. They have to work hard to be loved.
Among banks, you're more conservative than most. With a stodgy name.
Try not to be a conservative bank with a stodgy name. 'Standard Chartered' still conjures images of a Dickensian Bob Cratchit scratching at his ledger with feather quill and ink.
The aura of English public school, rugger, cricket and 'drinks on the verandah at the club afterwards Geoffrey?' still pervades the brand.
And long may it remain... only differently.
The bank is stuck in no-man's land. Too big to be local, not big enough to be truly global: a consumer bank with a wholesale banking heritage: 150 years of history (baggage?) facing the modern day.
The marketing gurus at the bank know all this. They've made positive moves to freshen up the look of the brand and, more importantly, align their people around the noble proposition of partnership.
The issue appears to be less a failure of strategy, more a failure to deliver the promise. The new livery and internal staff programme have been paraded before customers; can they discern an appreciable difference in the actual product? Do all your customers feel you're a true partner to them? Your suppliers too? Your staff?
TREATMENT
KETCHUM'S PRESCRIPTION
- The face of Standard Chartered is visible, but the proposition to the customer is less clear. A next step might be to use advertising to make the bank's customers the heroes - how have they benefited personally and financially from Standard Chartered's approach?
- Standard Chartered's community involvement is powerful and pervasive - now this could be matched by more aggressive above-the-line advertising messages with enough reach and frequency to break through.
WILKEN'S REMEDY
- Imagine your name is not Standard Chartered but 'Uncommon Uncharted'
- Focus on just two of your stated values - 'courageous' and 'creative'.
- Deliver your partnership promise consistently through small noble deeds. Focus your people on doing the basics brilliantly.
- Position yourself distinctively by owning an experience. Perhaps you can be the first to humanise banks again. Start by banning all automated answering machines - I'll be the first to switch.
