The early analysis of the case examined the general approach to
branding, the extent to which brand was deployed as a strategy within the company and an assessment of brand as a catalyst across other initiatives within the case.
4.2.1 Lack of brand approach
A large number of respondents felt that the company had historically lacked a strong brand orientation and many were critical of the extent to which brand had been adopted in the business:
We cannot claim to be brand aligned or oriented. You will find evidence of some supportive marketing activity and external expressions of our brand, but nothing that suggest we deploy it as a central part of our business strategy. (11:39:103)
The considerable track record of the company notwithstanding and the challenges of the bulking scandal aside, the business had performed well over the years and had achieved much, across a number of business areas and geographic markets. It was consistent however, that a brand approach was not amongst its core strengths, as offered by a senior executive in the United Kingdom operation:
We have tremendous talent and capabilities across the business but I am afraid to say that a cohesive and well organised brand is not one of them. (21:42:106)
This general lack of brand orientation, however, is subsequently
136 was lacking in the business and was likely to play a heightened role, given some of the emergent changes that were taking place.
4.2.2 Sales and performance orientation
The lack of a brand approach appeared to be a function of a strongly entrepreneurial culture based on the origins and history of the business. This was exacerbated by the sales driven nature of the traditional
insurance industry and although the business had evolved considerably since its inception, this historic culture still prevailed. It became evident that this existed at the expense of a brand orientation and certain key challenges had begun to emerge.
The highly evident sales orientation is highlighted below in an extract from interviews with senior executives in both the South African and United Kingdom markets:
We are a strongly sales led organisation and this has always been our primary focus - perhaps at times to our detriment. (14:12:57)
Based on what I have just said I would say we are more sales driven than brand oriented. Perhaps a long term shift toward a more brand led company could help create part of the business change we seek in the form of pull within the market; but in the near term we are part of an industry that pushes product through the sales process in a very direct manner. (21:12:50)
The performance orientation is manifest in a number of different ways and is highlighted across a range of different business dimensions, based on the respondent’s area of responsibility and particular function. In part, the performance is a result of the entrepreneurial nature of the business and a well established historical culture, as expressed by this human resources executive:
137 The business has a strong entrepreneurial and can-do culture and a strong bias for selling and customer service. If you bring these together, you do have a business that is sales and service orientated, but this is not necessarily a result of internal branding and is a more historic or traditional culture. (10:20:63)
A further aspect of this mindset is based on the nature of the broader financial services industry where investment returns, risk management and a strong customer service focus also come into play as priority areas for emphasis in the business. Senior global executives within the
investment subsidiary of the group, make this point specifically: Brand therefore is the communication of our performance rather than the other way around. Our ability to deliver sustained results to our clients is our raison d’etre and it lies at the heart of our business philosophy and strategic goals. (17:11:49)
Our results come from good customer service, managed risk and consistent returns. These are the primary drivers of our results rather than the role of brand. (19:41:101)
Whilst this culture is prevalent and has formed the basis for the historic performance of the business, there is wide recognition, triggered by the bulking scandal, the change in leadership and pending change in
ownership, that the time was right for a shift in the overall thinking with regard to brand.
4.2.3 An intention to brand
The new leadership in the business and the significant shifts taking place both within the company as well as the industry, however, were giving
138 rise to a groundswell of emergent thinking around the increased
importance of the role that brand could play in the business. The first evidence of this new priority is quoted directly from the CEO:
We need to significantly improve our brand orientation both from an
investment perspective as well as a mindset and strategy in the business. We have come from a historically sales driven and entrepreneurial culture, so marketing and branding has never been high on the agenda. (9:15:55) This statement of intent was echoed by the group financial director who ironically had many years of service under the old guard and manner of functioning, but was nevertheless fully supportive of the new CEO and his stated direction for the business:
I suspect that we will be more closely aligned as a brand throughout the group and also believe that brand will play a more central role in our business strategy. (11:41:115)
The debate about whether the intent was reactionary or proactive is not really the issue here. The bulking scandal had triggered a certain dynamic in the market and media, but the company possessed the tenacity and capacity to deal with that, born from a 100 year track record. This matter ultimately came down to a combination of issues centred around shifting industry dynamics and markets and the intent of new leadership,
expressed here by the executive responsible for strategy:
It is fair to say that we do aspire to being a brand led business and it is high on our list of priorities and in alignment with our new strategy and vision for the business, so you could argue that we have the intention. (12:11:52) Notably, the seismic industry shifts taking place within the retail side of the financial services industry had triggered both a need to respond to
139 rising consumerism and had also highlighted massive growth
opportunities for the group, in both the South African and European markets, specifically, the United Kingdom:
There is a lot of talk about a more aggressive shift into the retail segment and this could be a game changer in our general approach to brand and our
orientation as a whole - this may require a quantum shift in thinking. (19:42:101)
These findings conclude the overview of the general brand context at this site, best summarised as an organisation traditionally lacking in brand orientation and underpinned by a legacy of entrepreneurial spirit, sales and performance orientation. Suffice to say that there was strong evidence of a shift in thinking towards a more brand oriented era, triggered by a range of business and industry imperatives.