Managing a New Brand

Dr Martin M. Lwanga

This month one of the oldest and most successful brands in Africa will exit the Uganda Market. According to an August 2019 notice appearing in the Uganda Gazzete on November 11th Barclays Bank will cease; it will be rebranded and run as ABSA Bank, a name which is just entering the Ugandan market.

Barclays Bank started operations here back in 1927 and has since been one of the most successful commercial banks. It boasts of a nationwide network. In 2018 it was ranked 5 in the industry and controls about 9% market share. There are many Ugandans particularly of the older generation who associate with it and can’t think of banking with any other due to her solid reputation as a trusted bank. It has not just a solid reputation but also an international reach.

However, newer and more aggressive banks on the market have been chipping away the share of traditional banks. Like Centenary Bank where the Catholic Diocese of Uganda is the majority shareholder and in 2018 ranked number 2. The banking industry is also going through a major shift especially with emerging digital infrastructure. These and other global reasons may have caused Barclays Bank to move out of the market, though she does retain a share in the ABSA group.

Unlike Barclays the ABSA brand which stands for Amalgamated Banks of South Africa is new here. It has a presence in over a dozen African countries but in Uganda there isn’t much history. The challenge here is that for the managers of ABSA they have their work cut out to popularize a new brand against a more revered one.

But do brands matter! I was recently talking to a Manager who had just moved from one of the oldest banks in Uganda to a newer outfit. He shared with me that he is finding it more challenging to sell his new outfit unlike the other. “I have to do a lot of convicting with this one!”

All which means that the managers of ABSA have to invest considerably in making Ugandans embrace this new brand. By brand we are not just talking about name recognition but also the perception that goes with it. Will Ugandans consider this as a High street bank as opposed to Main Street and what is then the brand strategy? How about perception of her customer care operations. What were the weakness in the Barclays Brand which can be exploited?

When Stanbic Bank took over Uganda Commercial Bank (UCB) in 2002 it too faced no less a similar feat. However, given the performance since it clearly shows the Ugandan market can indeed embrace a new brand. Of course one of the essentials here is taking advantage of the old brand name and its features.

Like all new brands on the market ABSA needs to vigorously market herself and clear any confusion likely to result from this development.

ntly talking to a Manager who had just moved from one of the oldest banks in Uganda to a newer outfit. He shared with me that he is finding it more challenging to sell his new outfit unlike the other. “I have to do a lot of convicting with this one!”

All which means that the managers of ABSA have to invest considerably in making Ugandans embrace this new brand. By brand we are not just talking about name recognition but also the perception that goes with it. Will Ugandans consider this as a High street bank as opposed to Main Street and what is then the brand strategy? How about perception of her customer care operations. What were the weakness in the Barclays Brand which can be exploited?

When Stanbic Bank took over Uganda Commercial Bank ( UCB) in 2002 it too faced no less a similar feat. However given the performance since it clearly shows the Ugandan market can indeed embrace a new brand. Of course one of the essentials here is taking advantage of the old brand name and its features.

Like all new brands on the market ABSA needs to vigorously market herself and clear any confusion likely to result from this development.