28 November 2008
	BRAND-BUILDING IN AFRICA One size does not fit all By David Furlonger

African brands must learn how to lift their image from association with basic consumer needs, to the loftier levels enjoyed by First-World brands. The lower image can be an advantage in Africa, says Brand Union CEO Anthony Swart. "A Mont Blanc pen which appeals to ideals of status and prestige may not expect to enjoy the same success as Bic, which caters to basic needs of functionality and reliability." However, no ambitious company wants to remain indefinitely on the bottom rung of consumer expectations. That's where they engage in what Swart calls "deficiency needs", the basic requirements for doing business. The next step is "growth needs", which fulfil consumers' psychological and emotional needs. Swart uses banks to illustrate his point. Lack of education, limited understanding of banking institutions and often a history of regional instability, have caused mistrust of banks in developing countries. Nigeria's Union Bank, with its slogan "Big, Strong, Reliable", is typical of those that speak to this mistrust with a message that targets basic customer fears. This situation persists in markets such as the Democratic Republic of Congo (DRC) where, says Swart, banking safety is still not guaranteed. Nigeria is different. A decade ago, there were nearly 100 licensed banks. Since then, tougher capitalisation requirements have led to a flurry of mergers and acquisitions. The result is not only fewer banks, but also greater consumer trust in their security. Ambitious banks hoping to enter new markets will need to improve their activities and brand positioning there It was not an easy transition. Old-style institutions such as First Bank, Union and UBA may have been perceived as slow and bureaucratic, while newer ones were considered innovative and efficient. But several of the latter collapsed. In some cases, old merged with new to mix the best of both worlds, says Swart. The modern UBA was born from a union of the old bank and the newer Standard Trust Bank. Its combined brand message is "Trusted Innovator". He says of the Nigerian banking sector as a whole: "We are seeing a move towards increased efficiency, better service and advanced product offering as the basic needs are met. Banks that stay on the bottom tier and fail to adapt to evolving marketing conditions and customer expectations will die." Banks that are planning to expand across Africa, such as UBA, must tailor that brand to different markets. "It may wish to emphasise the value of trust in less developed DRC, while accentuating its values of innovation when playing in a more sophisticated market like SA." Ambitious banks hoping to enter new markets will need to improve their activities and brand positioning there. "Otherwise, what has typically happened is that banks that move beyond their home border to set up shop in other more developed markets will attract only their own expat customers now residing in this new area. "Those brands with the foresight to develop an internationally credible brand that retains the heritage of its origins will endure." As an example, they need look no further than Omo washing powder, says Swart. Its basic product, designed for cleaning clothes in rivers and buckets, lives comfortably alongside advanced versions with emotive advertising messages. Annual sales among SA's black middle class are growing 30%. "Through successful brand extension, Omo has managed to appeal across the scale of its consumer base." To approach brand marketing in Africa, says Swart: "You need to understand on which tier your brand most comfortably lives. You need to determine if all the necessary building blocks are in place or brand requirements have been met before you can follow your consumers' advancement, or in fact lead it, and remain relevant to them." Sean McCoy, MD of marketing services group HKLM, says that brands moving into new African territories, should learn from the experiences of those already there. They should also realise that "Africa is as diverse as the many peoples and cultures it sustains. It isn't homogenous and shouldn't be treated as such."