Absa's new logo has been the focus of some animated, and at times cutting, news and social media debate. Not everyone has found it appealing. One Twitter user went so far as to say that it looked like it had been drawn by a toddler. It is$,$ however, unlikely that the people behind the re$-$branding are taking this type of criticism too seriously. They know with the certainty of experience that within five years everyone will have accepted the logo and few people will even remember the old one.The truth is that for any organization going through a re$-$branding process, unveiling a new logo is not the end goal. It is just the start. Coming up with an attractive design, choosing the color, and deciding on a font is the easy part. What follows is what really matters$-$ and it requires a long$-$term view. Strategic decision given the enormous cost involved, it is safe to assume that the executives and board that signed off onthe re$-$branding didn't do it just because they felt like a change. It only makes sense if it was a strategic decision based on a much broader argument $-$ that Absa wants to change its business dramatically, that it wants to reclaim market share, shake off the past, move away from the association with Barclays, and position itself in an entirely new way$-$ particularly outside of South Africa on the rest of the continent where it has undergone a name change from Barclays Africa to Absa. CEO, Maria Ramos, announced in March that the bank plans to double its market share of banking revenue on the continent to$,12\%.$ Ifit achieves this aim, then we will know the branding exercise has worked.Follow$-$throughSo how can Absa ensure it does not fall into this trap? With its new logo$,$ the bank has tried to present an image that is fresh, youthful, and technologically savvy. 

The choice of all lowercase lettering inparticular is unconventional, and a deliberate break from the conservative, all-upper-case logo of the past.The drone light show over Johannesburg took this even further. So did the opening of its new digitally$-$enabled branches with free Wi$-$Fi and virtual banking. Absa has also announced WhatsApp banking, afirst for South Africa, as part of its digital banking strategy. This is a bold positioning, particularly for a graduate School of Business Examinations$1$bank$-$ which by its very nature, is a conservative, bureaucratic, rules$-$based institution. Anyone who has applied for a home loan knows that you have to tick all the boxes, or you won't get the money. The parameters are set, and you have to meet them.The challenge now is whether Absa is actually going to be bold and brave. Will it live that language? Because if it can't deliver the service and products to match its new image, then the re$-$branding will be a failure. A new logo is only symbolic. 

For re$-$and standards and improved tools and systems" which would help them "keep supply chain costs down" and boost volumes. A new logo is only symbolic. Fora re$-$brand to work, it has to follow through and deliver on its stated intentions and that is not easy. The brand is about meaning. What is really important is not what a logo looks like, but what people think and feel when they see it$.$ That is why it will be years before we can know whether this re$-$branding has really been successful or not. Ultimately, it is not people's immediate reaction to the logo that matters,but their long$-$term response to Absa's performance and indeed, the bank's success in meeting its growth targets. The real power of the brand is not the design people see on Absa's door or on top of their bank statements. It is how they feel about the way the bank behaves, the reputation it builds and the trust it is able to inspire.

REQUIRED:

a$)$ Explain what rebranding is and then discuss why ABSA might have found it necessary to rebrand itself. $(10$ Marks$)$

b$)$ Branding can be seen as a powerful means to secure a competitive advantage. How does the branding of its logo assist ABSA in securing a competitive advantage?  

Answer rating: 100% (QA)

a Rebranding is the process of changing the corporate image of a company or organization often including its name logo design elements and messaging This is typically done to align with evolving marke... View the full answer