Scribd
Upload
148 views7 pages

Citi Bank

The document discusses Citigroup's decision to merge with Travelers and the challenges of integrating their brands. It considers three potential brand architecture strategies: using a single worldwide masterbrand, an asymmetric model emphasizing some brands over others, or a portfolio approach grouping brands under Citibank and Travelers. The merger allowed access to more customers and distribution channels but required protecting brand equity while maximizing benefits. Key executives were tasked with articulating the new brand architecture.

Uploaded by

shubhamranka
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
148 views7 pages

Citi Bank

The document discusses Citigroup's decision to merge with Travelers and the challenges of integrating their brands. It considers three potential brand architecture strategies: using a single worldwide masterbrand, an asymmetric model emphasizing some brands over others, or a portfolio approach grouping brands under Citibank and Travelers. The merger allowed access to more customers and distribution channels but required protecting brand equity while maximizing benefits. Key executives were tasked with articulating the new brand architecture.

Uploaded by

shubhamranka
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 7

• Cost of getting more business from existing customer < Cost of acquiring new customer

• Economies of scale + Leveraging Citi’s strong global brand


• Key People involved to protect brand equity while extracting maximum benefits from the
merger
- Susan Avarde, Director of Global Branding
- Tim Teran, Director of Global Consumer Insights
- Anne MacDonald, MD Communications
• Decision to articulate the brand architecture of Citigroup
The 3 potential brand architectures
• Worldwide Masterbrand model
Brand name that serves as the main anchoring point on which all underlying products are based

• Asymmetric Model
Revitalise the power brand while allowing all other brands to continue expressing their personalities

• Portfolio branding approach


Regrouping all Citigroup business under the two leading brands (Citibank and Travellers) and these two would be
realigned with Citigroup’s new values
The Background
• Glass Steagall Act of 1933 – US banks CANNOT conduct underwriting, insurance and other non bank
activities
• The Federal Reserve push for deregulation ensures many of the Act’s provision prohibiting commercial banks
from affiliating with insurance firms done with
• The Graham Leach Bliley (GLB) Act – Allows creation of new type of bank holding company called financial
holding company under which nonbank activities were organised in subsidiaries
• Relaxation of provisions + GLB = Increase Likelihood of Fed approval

Key Trends
• Change in customer demographics
• Technology changes
• Consolidation in banking industry
• Globalisation
• Goal – To achieve a market defining share of the world’s wealth and transactions
• Merger gave access to
- 60 million + banking customers and vice versa
- New distribution channels
Citibank Travellers Salomon Smith Barney
Largest US issuer – Credit Financial products offered $9.3 billion Equity Capital
Cards, Growing player in like life, automobile, $724 billion client assets
other countries homeowners and property In 6 million accounts
insurance
One of the largest Retail Annuities, packaged Managed client assets of
banks in the world mutual funds, IRAs and more than $253 billion
loans through Travellers
46 countries Life and Annuity, Travellers
1376 branches Property Casualty in the
serving 28 million accounts US
Citi Branding
• Predictable, recognizable, distinct experience seamlessly available anytime, anywhere
• Common set of attributes – quality, trust, globality, accessibility and innovation
• Brand name did not resonate same everywhere
- Asia Pacific: Upscale image because it did not solicit small accounts
- US: At par with other banks
Brand
• Brand as defined in US Banker – promise to customers regarding the company’s product or services
• Service businesses tougher to brand than products as they are associated with consistency, convenience and
service excellence rather than tangibles such as packaging, taste ,or color

4 Characteristics of consumer oriented icons


- Relevance
- Distinctiveness
- Ubiquity
- Consistency and dynamism

• Financial service organisations with strong brands – charge premium + attract & retain customers

You might also like