How commercial banks deal with homogenization competition through brand building

Author Xie Hongru I. Commercial bank homogenization competition is serious At present, the domestic bank competition in the same industry is so fierce, mainly because of its customers, products, regions and other aspects of the positioning of the exceptionally similar, and the low level of homogeneous competition, not only to erode the profitability of China's commercial banks, but also worsened the competitive environment of the banking industry. Firstly, all commercial banks attach great importance to the development of retail banking business, due to insufficient segmentation of service targets and similar competitive strategies, resulting in intensified homogeneous competition in the retail business field. Secondly, there is no obvious difference between the product functions and service contents launched by the commercial banks, and the innovative products and services have become seriously homogenized, which does not result in any special features, let alone any competitive advantages. Thirdly, most commercial banks, regardless of their size, have implemented cross-regional operations, and commercial banks will focus their business efforts on economically developed regions, especially in central cities. Second, to enhance the brand value is to deal with homogenization of the road to competition Although competitors can copy the products, services, technology and processes, but they can not copy a superior brand. For a commercial bank, a superior brand means long-term marketing success and profits. At a micro level, banking strategies can be categorized into product strategies, market strategies, talent strategies, merger and acquisition strategies, etc. Commercial banks can at best only gain a short-lived advantage by relying on a particular functional strategy; the only way to build core competitiveness is to establish a brand development strategy. Brand competitiveness is the most durable and fundamental core competitiveness of commercial banks. China's banking (love shares, quotes, information) industry to have a qualitative leap, improve market position, will certainly need a new brand development strategy, in order to make the brand repositioning, give China's banking brand new connotation, early grasp of the market opportunities, to realize the high level of leap. Third, the current situation and gaps in China's banking industry brand building At present, China's commercial bank brand building is still in the early stages, in the concept, culture, positioning, management, and brand maintenance from the real brand strategy standard there is still a small gap, brand strategy for China's commercial bank development is a long way to go. (A) the brand concept is still developing Some commercial banks have not realized the importance of brand strategy, or although formally accepted the concept of brand, but misinterpreted its content and substance, often feel that the brand is to do advertising, signboards, logos and graphic design, but ignored the most essential part of the brand strategy, that is, to create brand equity, to establish the enhancement of the brand value of the behavior of the contents of the content and pay for the practice. This is the most important part of brand strategy. This is also the reason why customers are shuttled all day long to various bank cards, wealth management, foreign exchange and other banking products in the publicity and delivery, but do not feel the brand's infectious power. (B) brand culture content is insufficient From the current situation, although China's commercial banks brand awareness has increased, but the cultural content is insufficient, it is difficult to feel the personality and precipitation of different commercial banks through the buildings, decorations, staff dress services. The reason for this is, on the one hand, the thinness of their own corporate culture and, on the other hand, the lack of genuine care for customers. As a matter of fact, all brand cultures are built on the basis of always putting customers in the first place. Only always to meet the needs of customers, customer satisfaction as a heartfelt request to nurture the culture of service, in order to truly establish a vitality of the bank's brand. (C) Lack of individuality in brand positioning The segmented market is the logical connotation of brand strategy and the most basic feature of brand strategy. At present, China's commercial banks in the brand positioning is the most lack of personality. Emphasizing "product" rather than "brand", brand positioning basically lacks its own unique added value. Banks emphasize on providing products rather than nurturing a distinctive brand. Whether from the naming or product content, traces of similarity is more serious, the brand role is not obvious. (D) brand management in their own way Highlighted by the lack of integrity and consistency in the implementation of the brand strategy between the upper and lower levels of the bank, between departments, directly affecting the effectiveness of the brand strategy. Brand products are basically marketed by various business departments in a decentralized manner, lacking integration; publicity, advertising and promotional activities are often regarded as subordinate functions of the administrative departments, and isolation from business operations makes it difficult for brand marketing to form a benign docking with social demand. (E) brand maintenance needs to be strengthened Brand building is a dynamic concept that requires the accumulation of time and the precipitation of history. From the creation of the brand to the maturity and success of the brand, requires careful maintenance. Most of China's commercial banks are still stuck in the stage of launching branded products, the lack of maintenance and updating of products, it is difficult to form a strong brand. Highlighted in two aspects: on the one hand, the service specification is more rigid, lack of emotional penetration. Commercial banks as a service industry, the service is more reflective of the difference, but also to enhance the competitiveness of its brand is the key. However, although the banks have very strict service regulations, but the actual effect does not reflect the respect and cherish customers. Although the staff smiles to face the customers, there is a lack of emotional penetration. Therefore, customers still do not feel like "God" when they receive banking services. On the other hand, the financial products on the market so far are still "Wealth Management Treasure", "Foreign Exchange Treasure", "Bank Certificate" and other basic product series, and there are fewer new products with impact. The brand strategy of unstable foundation lacks the support of innovative products, which makes it even more fragile. Fourth, the focus of commercial bank brand building and considerations Brand strategy is the logical result of the development of the banking industry to high-end competition. On the basis of infiltrating the brand concept into every cell of itself, commercial banks should carefully analyze the market environment, combine their own characteristics and advantages, build on their strengths and avoid their weaknesses, take the implementation of the brand strategy as the core to create a first-class brand bank, and promote the realization of China's banks from the brand to the brand name of the leap. (A) relying on cultural "externalization" distinctive brand image The creation of a famous brand can not be separated from the fertile ground of culture, culture is the basis for the creation of a strong bank brand. If the construction of commercial banks corporate culture to a new level, will certainly be "externalized" into a more distinctive cultural brand image, and the social public to produce a greater brand charm. Specifically to the operational level, first of all, to establish the concept of culture. The brand itself is a kind of culture, with cultural heritage of the brand has vitality and infectious force. Secondly, according to the actual situation to choose their own brand culture. Finally, start from a small place, start from the usual. Because culture itself is an accumulation of life and history. A more attractive product, a more sincere smile, a quicker service may settle in the customer's mind and become an integral part of the bank's culture. (ii) Differentiated brand positioning creates brand core value Differentiated positioning can increase the cost and difficulty of competitors' imitation, attract special customer groups to form brand loyalty, and create brand core value, which is the essence of brand strategy. China's commercial banks can choose the following positioning strategies according to the differentiation of today's market environment and the specificity of the competition stage: 1. Innovative positioning strategy. The singularity of products in China's bank supply market both puts forward requirements for innovation and implies a huge space for innovation. Innovation as an important strategy for brand positioning, because innovation can give the brand the opportunity to be a leader in similar products, and the law of the market is that almost all advantages are attributed to the leader, and customers will be more inclined to buy the leading brand.2, the differentiated positioning strategy. That is, the product difference strategy. Small and medium-sized commercial banks, due to the strength and weakness of customer resources, through the bank's image, product features, quality services and other forms, efforts to create product features in order to differentiate their products from competitors, so that customers establish brand preference and loyalty. 3, evolutionary positioning strategy. In China's banking product market development is not yet mature enough to lead to the reality of a small number of products under the conditions of the existing products, small changes to the existing products will be made to evolve one step forward, to attract the eyes of customers, is undoubtedly of great significance. (C) Improve the organizational structure to form an integrated strategic management The establishment of a specialized brand management department is crucial for commercial banks to implement their brand strategy, therefore, banks should speed up the improvement of their organizational structure to adapt to the requirements of the new competitive environment. Specialized brand management should contain two levels of content: one is the establishment of strategic brand management institutions, professional responsible for the entire bank's brand operations, which is to improve the level of brand management system guarantee; the second is to cultivate a number of high-quality brand managers, responsible for the bank's brand strategy decision-making, which is to improve the level of brand management talent guarantee. (D) service and innovation to maintain brand life The launch of branded products is only the beginning of the brand strategy, and the maintenance of the brand is the key to the brand strategy, is the basis of brand vitality can last. For the establishment of the commercial bank brand, this maintenance is to provide emotional penetration of the service and constantly create new products to interpret the soul of the brand. A high level of service is a necessary means to maintain the bank's brand. It should be noted that service in the service industry not only refers to the attitude, every link is doing service, and it is a service that requires emotional penetration, so the bank service should have a higher standard. From the heart, through each link, to provide customers with excellent service, to show the image of the bank, to maintain the bank's brand. Specifically, it does not only refer to the service efficiency, enthusiasm and standardization of the front desk, but also includes the convenience of the service outlets, the sense of class of the business hall, the size of the space, the service information, the completeness of the monitoring facilities at the front desk, the timeliness and certainty of the answers to the questions when consulting, the stability of the operation of the auxiliary equipment, and the image of the bank's managers in the public **** occasions, and so on. The introduction of innovative products by banks facilitates the repeated emphasis on the brand and ensures its vitality. First of all, banks should pay attention to the inheritance and continuity of the product to the brand style when innovating products, so that the new product can achieve the purpose of continuing to interpret the brand concept. Secondly, it is necessary to establish a sound operational mechanism for the development and promotion of innovative products and to implement a brand project responsibility system. Third, product innovation should always be market-oriented and customer-oriented. The purpose of both brand building and product innovation is to expand the market and attract customers, so product innovation must be centered on the market and customers. In addition, commercial banks should pay attention to the following matters in brand building: Focus on the overall brand building, from the product development, design, packaging, advertising, press release, outdoor marketing, publicity and promotion, and other aspects of the overall planning to enhance the overall brand image. Focus on the protection of brand property rights, from brand management, legal and social protection and other aspects of the bank's brand rights and interests, to take effective measures to avoid and stop the infringement of the brand image. Focus on brand marketing crisis management. For emergencies that may affect the brand, develop a comprehensive response plan to maximize the maintenance of brand image.