Very soon, the 96-year old Bank of Baroda (BoB) will wear a new look. The bank is going in for a major brand-building exercise to reflect its new technology-enabled business strategy. It is planning to spend Rs 350-400 crore for the fiscal 2004-05, towards this exercise.
The bank is re-positioning itself to cater to the below 35 age group and is working on to create a “distinct image” among its peer group. Currently, BoB has a customer profile of 45 and above.
The advertising and marketing alone will cost the bank around Rs 50 crore in 2004-05. After the roll-out of the modified brand in 2005-06, the bank will be spending another Rs 100 crore, sources said. “The bank is also spending Rs 600 crore for its technology upgradation programme”, said BoB general manager Suresh Mehta.
FE had broken the story on May 5, 2003 when BoB’s top management had just mooted the plan. BoB has appointed Ray+Keshavan, a designer firm to carry out this exercise, which shall focus on the form, shape and colours of the new logo. However, it needs a board approval for a change in the logo, pointed out Dr Mehta.
In the first place, all these changes will be carried out in the urban branches. The bank is hopeful of executing its first phase plan by March 2005. In all, BoB has 2,740 branches.
“This exercise is important if you see the demographic profile of India. Seventy per cent of the population is now under 35 years of age. We would also like to redefine the way of banking with technology orientation”, Dr Mehta said, adding “We want to position our bank differently from other public sectors banks”. The brand-building exercise is under BoB’s umbrella plan of converting itself into a technology bank. The bank has undertaken a business process re-engineering plan with IT, being the backbone. All financial entities believe that the colour of the logo plays a major role in building a brand.