- April 30, 2020
Rebranding Strategy of Doral Bank
RebrandingStrategy of Doral Bank
RebrandingStrategy of Doral Bank
Themarketability of Doral Bank has been experiencing unstable sales,reducing profits and negative publicity, which have threatened firms’survival and long-term growth. Instability in performance has alsobeen attributed to limited innovativeness, poor advertisementmethods, constrained customer relation, flawed product positioning,high pricing, and heightening competition, among other factors. Aninformed rebranding strategy will be vital to stimulate growth,rebuild a long-term customer relationship, gain competitiveadvantage, and increase profit margins. In this case, an elaboraterebranding strategy will be the kind that reconsiders the product`sname, symbol, packaging, pricing, advertising, product positioning,distribution strategy, and design, among other elements.
Accordingto Muzellec and Lambkin (2014), the value of rebranding the name of acompany cannot be underestimated because of the intangible value itpossesses. Customers tend to be attracted to products and servicesthat communicate value, reputation, and identity. The name of thebank has received negative publicity and has elicited discussions onthe social media that have tainted its image. By changing its name,the bank will be able to remain relevant and appeal to potentialcustomers. An elaborate name that could be adopted is “Present andFuture Generation Technology Bank,” which is more appealing becauseit communicates technology and future orientation, as well as renewedvibrancy.
Ithas been noted that Doral Bank has mainly been focusing on lucrativebusiness investments, for example, mortgages, real estate, insurancecover for high-end cars and mega-telecommunication companies. Thismove has sidelined other potentially valuable niches such assmall-scale businesses, automobiles, household assets and themajority middle-class population, which has caused it to lose salesshare. Creation of small packages that is affordable and inclusive toa majority of customers, such as small business loans, educationloans, and insurance cover for ignored products, will enable the bankto attract a large and diverse customer base.
DoralBank has been cited as a bank that serves the wealthy class becauseof the high loan interests, as well as high transaction chargeslevied on withdrawals and deposits. These charges have discouragedmany small-scale businesses, middle class, and low-class potentialcustomers. Indeed, as Marc and Jean-Claude (2012) note, smallbusinesses and middle-class customers are opting for banks thatcharge lower fees, which also happen to perform better than thosecharging high fees. In this regard, reductions in loan interests andwithdrawal and deposit charges will be beneficial because it willaccommodate different clients who have been reported to be sidelinedby the bank.
DoralBank has limited its services and products to a few, major towns inthe United States. Many customers in small towns, overseas and thecountryside have been unable to access the bank’s services andproducts (Muzellec& Lambkin, 2014).In this regard, adopting better online transaction mediums and mobilebanking systems, and creating more branches in remote areas willposition the bank to be competitive.
Forover three decades, Doral Bank has been relying on traditionaladvertising strategies such as newspapers and magazines, which arenot inclusive to different categories of clients such as thegeneration Y group. Making changes in the advertising strategy toinclude social media platforms and online advertising will enable thecompany to increase its customer base, translating to high sales andprofits.
DoralBank has been noted to lack adequate workforce and regulardistribution channels to serve its growing customer numbers. Longqueues for customers and fewer tellers have been major contributorsto client loss (Muzellec& Lambkin, 2014).Therefore, the bank will need to hire more employees to facilitateoperations in marketing, advertising, and customer care to meet theconsumer expectations.
Improvementsin Design or Quality
Customershave been raising concerns about the quality of services offered bythe employees of the bank. For instance, women have complained aboutlack of seats at the bank. There have also been complains about datasecurity Therefore, there is an urgent need for the bank’smanagement to address the issue by improving bank design.
Inconclusion, the purpose of this paper has been to address thefailings of Doral Bank and recommend the necessary rebrandingstrategies to enable it regain its sales, profit and competitivenessglory. The bank has suffered setbacks due to different factors suchas bad reputation, unreliable distribution methods, poor servicedelivery, unreliable methods of advertising, poor servicepositioning, poor pricing and packaging of its products, which havecaused reduced sales and profitability. However, the bank can improveif it adopts an informed rebranding strategy focusing on servicedelivery . A total rebranding is a marketing strategy will need toreconsider the product`s name, symbol, design, packaging, pricing,advertising, product position, distribution strategy, and design,among other elements.
Balmer,J. & Greyser, S. (2013). Revealingthe Corporation: Perspectives on identity, image, reputation,corporate branding, and corporate-level marketing,London: Routledge.
MarcF. & Jean-Claude U. (2012). "Corporatebranding: an interdisciplinary literature review",EuropeanJournal of Marketing,46, pg.733 – 753
Muzellec,L. & Lambkin, M. C. (2014). Corporate Rebranding: the art ofdestroying, transferring and recreating brand equity. EuropeanJournal of Marketing,40, 7/8, pg803-824