Brand strategy in the Swedish banking industry : A comparative study of Nordea and SEB

J

Ö N K Ö P I N G

I

N T E R N A T I O N A L

B

U S I N E S S

S

C H O O L JÖNKÖPING UNIVERSITY

B r a n d s t r a t e g y i n t h e S w e d i s h

b a n k i n g i n d u s t r y

-A comparative study of Nordea and SEB

Bachelor Thesis in Business Administration Authors: Christian Algotssson

Henrik Edström

Emil Folkesson

Tutors: Olga Sasinovskaya

Acknowledgements

First we would like to thank our respondents Nordea and SEB for their time dedicated to this thesis when conducting interviews and for answering the additional questions that occurred.

Further we would like to thank our tutors Maya Paskaleva and Olga Sasinovskaya for their constructive criticism but also our discussant groups that provided us with relevant feedback.

Bachelor Thesis in Business Administration

Title: Brand strategy in the Swedish banking

industry

Authors: Christian Algotsson, Henrik Edström and

Emil Folkesson

Tutor: Maya Paskaleva and Olga Sasinovskaya

Date: 2008-01-09

Subject terms: Brand, brand identity, positioning, Nordea, SEB.

Abstract

A brand consists of more parts than the visible features such as names and logotypes. No matter in what industry a company is acting the brand in itself determines if the company will succeed or not. A successful brand is extremely hard to copy since two exactly similar brands do not exist. With a strong brand you create positive associations and form emotional relationships with customers.

The purpose with this paper was to investigate how banks in the Swedish market explain their brand identity and how they use their brand identity when positioning themselves. Furthermore the authors have investigated the differences in that matter between two of the leading banks in Sweden. This was done through a comparative case study with Nordea and SEB who are two of the leading banks in the Swedish market. A qualitative method has been used to this thesis and in-depth interviews have been conducted to collect information that was suitable for our stated problem.

The results showed that both Nordea and SEB explain their brand identity according to the different aspects that the theory states and they understand the importance of brand identity. When building brand identity it is important to be aware of the different parts that the brand identity consists of. Both banks try to develop the different parts of the brand identity but there are differences in the amount of resources they put in each part. When positioning themselves, both Nordea and SEB are answering the questions in the theory concerning positioning and positioning a brand. The theory implies that the core identities are the foundation when positioning and both Nordea and SEB are well aware of their core identities and they are using them when positioning their brand.

Table of Contents

1

Introduction... 1

1.1 Background ...1 1.1.1 About Nordea ...2 1.1.2 About SEB ...2 1.2 Problem discussion ...3 1.3 Purpose ...4 1.4 Research questions...4 1.5 Definitions...5

2

Frame of reference ... 6

2.1 Brand definition ...6 2.2 Brand identity ...6

2.2.1 Identity and Image ...7

2.3 Building Brand Identity...8

2.3.1 Core Identity & Extended Identity ...8

2.3.1.1 Core Identity...8 2.3.1.2 Extended Identity ...8 2.3.2 Sources of Identity...8 2.3.2.1 Product...9 2.3.2.2 Organisation...9 2.3.2.3 Person...9 2.3.2.4 Symbol ... 10

2.3.3 Kapferers’ Identity Prism ...10

2.3.3.1 Picture of sender and recipient ... 10

2.3.3.2 Relation between sender and recipient ... 11

2.4 Positioning ...11

2.4.1 Positioning Strategy...12

2.4.2 Positioning a Brand ...13

2.4.2.1 Brand Pyramid ... 14

2.5 Arguments of chosen Theory ...15

3

Method ... 16

3.1 Qualitative approach...16 3.2 Case study ...16 3.2.1 Sample choice ...17 3.3 Data collection ...17 3.3.1 Primary Data ...17 3.3.2 Secondary Data...19

3.4 Reliability and Validity...19

3.5 Data presentation and analysis ...20

4

Empirical findings... 21

4.1 Interviews with Nordea ...21

4.1.1 Brand identity ...21

4.1.2 Building brand identity ...23

4.1.3 Positioning ...24

4.2 Interviews with SEB...25

4.2.1 Brand identity ...25

4.2.2 Building brand identity ...27

5

Analysis ... 30

5.1 The banks perception of their brand identity...30

5.1.1 Kapferer’s six questions ...30

5.1.2 Identity vs. Image ...31

5.2 Building brand identity ...32

5.2.1 Aaker’s four perspectives ...33

5.2.1.1 Product... 33

5.2.1.2 Organisation... 33

5.2.1.3 Person... 34

5.2.1.4 Symbols ... 34

5.2.2 Kapferer’s Identity Prism ...35

5.2.2.1 Picture of the sender... 35

5.2.2.2 Picture of recipient ... 35

5.2.2.3 Relation between sender and recipient ... 35

5.3 Positioning ...36

5.3.1 Positioning Strategies...36

5.3.2 Positioning mistakes...37

5.3.3 Positioning a Brand ...37

5.3.4 The Brand Pyramid...38

5.3.4.1 Nordea ... 38

5.3.4.2 SEB ... 38

6

Conclusions ... 40

6.1 Discussion for further research...41

References... 42

Appendix 1... 44

Appendix 2... 46

Tables

Table 1-1 Numbers from each banks annual report, 2005... 2

Figures

Figure2-1Aaker’s core identity (Aaker,1996)...8

Figure 2-2 Aaker’s sources of identity (Aaker, 1996)………...9

Figure 2-3 Kapferers’ Identity Prism (Kapferer, 2001) ... 10

Figure 2-4 Kapferers’ brand positioning (Kapferer, 1998)... 14

Figure 2-5 Melin & Urde’s brand pyramid (Melin & Urde, 1990) ... 14

Figure 4-1 Nordea’s Logotype... 24

1 Introduction

Here the authors will provide the reader with background information concerning the research and information about Nordea and SEB who serve as a comparative case study in the thesis. Furthermore a problem discussion will be presented concerning the topics of brand identity and positioning which will be narrowed down through a funnel approach to the purpose of the thesis and the research questions. Useful definitions will be presented as well.

1.1 Background

Nowadays branding is the most important aspect among companies’ activities. No matter if the company is a bank or a toy store it is the brand in itself that determines if they will succeed or not. It may seem as a simple equation but to identify what makes a brand succeed is rather devious since two completely alike brands do not exist (Haig, 2005). Branding is most commonly associated with assets such as messaging, identity, design and of course the product or service itself. However, a brand is more than these tangible assets. A brand is more about the emotional and psychological feelings that enable a person to relate to the brand (Johns, 2004). According to John Hagel, the historical view of a brand was that “You can rely on what we are offering because of our brand attributes”. Today, that old view is replaced with a more customer centric branding that is “I know you better than the competitors and you can trust me to put together the right products or services to meet your individual needs” (cited in Johns, 2004).

A brand increases the value of a product or a service by differentiating them from the competition and creates positive associations and forms emotional relationships with the customer. Brands provide businesses with the means to free themselves from for example constant price competition, to increase the value of their services and reduce their marketing costs. Philip Kotler has said that “if you are not a brand, you are a commodity. Then price is everything and the low cost producer is the only winner” (Greenwood, 2006).

When discussing branding, the authors consider the Swedish banking industry to be an interesting market where Nordea, SEB, Handelsbanken and Swedbank are the four big actors. The banking industry today is different than before since Internet is growing and the services that banks are offering through Internet are increasing. The products that banks provide are almost similar and that makes positioning hard for them as customers may understand the banks to be similar overall. New ways of distributing bank services have developed the possibility for banks to create new services and opened up for establishment in new markets and thereby increased the competition (Svenska bankföreningen, 2007). As stated in the Econ-report (2007) a common trend for the four big banks in Sweden is that their home market has grown. The biggest banks in Sweden have now expanded their home market from just focused on Sweden as their core market, to the other Nordic countries and the Baltic countries that now are considered as their home markets as well. Because banks are acting in different sub markets it is hard to state their general market share as a whole. Stating their result and company size is therefore easier and more convenient for getting a quick picture over their market position (Svenska Bankföreningen, 2007).

Table 1-1 Numbers from each banks annual report, 2005

Rapid changes are ongoing in the banking industry and there have been many mergers in the banking industry recently. When companies merge, brand issues are a focal point since they must mix their values and also create a new image that appeals to their existing and potential customers (Econ-report, 2007). Nordea and SEB are the biggest banks in Sweden and we have chosen them for conducting a comparative case study. Another aspect to be considered is that the Swedish state in the nearest future will sell their stake in Nordea and that SEB has been discussed as one of the possible buyers of that stake. Nordea has also said that they are open for discussions with other banks for possible mergers (Odefalk, 2007).

1.1.1 About Nordea

Nordea’s history goes back almost 200 years and the company structure of today is the result of plenty of fusions in Sweden and in other Northern European countries. In total, over 250 banks have been incorporated in Nordea’s history. The Swedish part of Nordea – Nordbanken, was the result of a merger between PK-banken and Nordbanken 1990. Nordbanken bought Gotabanken 1993 and 1998 Nordbanken merged with the Finnish bank Merita and created MeritaNordbanken. During spring year 2000 MeritaNordbanken merged with Unidanmark and later that year the Norwegian bank Christiania og Kreditkasse was included in the group. In 2001 the bank changed name to Nordea (Econ-report, 2007).

Nordea has around 10 million customers and is Northern Europe’s biggest bank. Nordea’s headquarter is located in Stockholm, Sweden. Nordea’s Internet bank is leading in the world with 4,8 million users. The biggest owner in Nordea is the Swedish State with 19,9% of the shares. The Finnish company Sampo is the second largest owner with around 7% of the shares (Nordea’s Annual report, 2006).

Nordea’s mission is making it possible through “providing easily accessible and competitive financial services and solutions, Nordea helps customers to reach their objectives”. Their vision is to be “the leading Nordic bank, acknowledged for its people, creating superior value for customers and shareholders” (Nordea’s Annual report, 2006).

1.1.2 About SEB

SEB has a history that goes 150 years back in time and around 120 mergers and acquisitions have created SEB to what they are today. Stockholms Enskilda Bank that was founded 1856 and Skandinaviska Banken that was founded in 1864 merged year 1972 and created Skandinaviska Enskilda Banken (SE-Banken). The reason for the merger that created SE-Banken was the increased competition from foreign banks. 1998 the bank bought the insurance company Trygg-Hansa, changed their name to SEB and created a financial group that focused in asset management and savings. In 2001 SEB

presented plans for a possible merger with Föreningssparbanken (Swedbank), but in September the same year the arrangements were cancelled due to big concessions that the EU commission decided about. In the following year they started their expansion outside the Nordic countries such as in Germany and the Baltic countries and through acquisition of banks in Eastern Europe SEB increased their presence in those parts (Econ-report, 2007). SEB has about 5 million customers and is present in around 20 countries. They have about 20 000 employees and around 50 percent of their operating profit is generated in markets outside Sweden. The biggest shareholder in SEB is Investor, managed by the Wallenberg family

SEB’s business concept is: “to provide financial services and to handle financial risks and transactions for companies and private individuals in such a way that customers are satisfied, shareholders get a competitive return and that SEB is considered a good citizen of society”. Their vision is to be “highest ranked by its customers within the chosen markets in Northern Europe and leading in terms of financial performance” (SEB’s Annual report, 2006).

1.2 Problem

discussion

Today it is in general accepted that brands can be valuable assets. One of the brand owner’s primary tasks is to arouse the consumers’ commitment for the brand. That is because a low commitment traditionally cannot create a strong and sustainable brand loyalty (Melin, 1999). A brand is more than just names and logotypes. A brand defines the identity of an organisation, product or service that needs to be based on a unique idea and told through a compelling story. The brand needs to have the ability to connect with potential customers and form positive emotional bonds. A brand cannot be built on empty claims. The organisation needs to actually live its brand (Greenwood, 2006). Creating a corporate brand is a long and complicated process and due to that many companies get it wrong. There have been cases where organisations have developed a new fancy slogan and hope it will mean something to consumers and employees. It is almost as bad when a company simply designs a new logotype and put it on every product, hoping it will create the vision of a corporate brand (Hatch & Schultz, 2002). Ries and Trout (1993) say that to succeed in an over communicated society a company must create a position in the receiver’s mind and that is a position that takes into consideration, not only the strengths and weaknesses for the company itself, but those of the competitors as well. They are also arguing for that positioning of a brand is about to create a place at the market and in the consumers mind.

A good and effective brand identity should be connected to the company’s vision and its organisational culture and values. It is used for create understanding and buy-in throughout the organisation. A brand identity that is too vague and general so almost any kind of communication towards the customer can be considered to be suitable is not helpful (Joachimstahler & Aaker, 1999).

Corporate branding has risen in importance but there is not much research explaining the determinants and effects of corporate branding. For making managers aware of how corporate branding can benefit their companies it is important to have insight into both determinants and effects of corporate branding and how the corporate brand is communicated (Kramer, Neijens & Smit, 2003). The objective for the brand owner is that the consumers collected impression of the brand will result in an image, which is strong, positive and competitive. Brand identity is usually characterized of what the

brand stands for, what gives it meaning and what makes it unique. Brand identity is something constructed though which can and sometimes should be changed, e.g. if the identity has become weak or diffuse (Melin, 1999). No matter what industry a company is acting in and the size of the company the vast amount of information being thrown at customer has made the fight for their attention and loyalty more complex than ever. Many companies assume that because they used to be successful, they will continue to be that in the future, but this is rarely how it works (LePla & Parker, 2002).

A multinational company has to consider if their brand, product and positioning shall be adapted to national or regional markets. The uniform picture of the brand allows that same commercial messages advertisements can be used in all markets and the communication hereby becomes very cost efficient (Melin and Urde, 1990).

Brand positioning is a part of the brand identity that is being communicated to the society and it pushes for differential signs that sever the brand compared to competitors. Positioning can be changed without changing the identity, but it is important that this comprises of the core identity so that the communication agrees with the brand identity (Ries & Trout 1993). According to Melin and Urde (1990) there is a lot of consideration to be done before the launch of a positioning concept. With the chosen positioning the company segments a part of the market and creates a picture in the consumers mind. If the company for any reason should want to reposition the brand, this takes time and a lot of economic resources. When positioning the brand a company creates a platform for an efficient communication. Positioning and communication are goals and tools in the company’s vision in creating a place for its unique brand product (Melin, 1999). The most general view of a brand position is a “super communication” effect that tells the customer what the brand is, what it offers and who it is for. This view reflects the relationship between brand positioning and the two other core communication effects of brand awareness and brand attitude (Hansen & Christensen, 2003). Porter (1996) states that it is not sufficient to venture in operational efficiency, which means to perform same or similar activities as the competitors, but in a better way for being competitive and reaching profitability. If you just endeavour in operational efficiency it may on the contrary lead to more competition, which benefits the competitors in form of decreasing prices. He means that operational efficiency should be combined with strategies for positioning for achieving the best result.

1.3 Purpose

The purpose with this paper is to investigate how banks in the Swedish market explain their brand identity and how they use their brand identity when positioning themselves. Furthermore the authors will investigate the differences in that matter between two of the leading banks in Sweden.

1.4 Research

questions

For helping the authors to reach the purpose, three research questions have been formulated that will work as a foundation of the thesis:

• How do Nordea and SEB explain their brand identity and how is it built?

• How and to what extent do Nordea and SEB use their brand identity when positioning?

• How do the brand identity and brand positioning strategies differ between Nordea and SEB?

1.5 Definitions

* Check in package – Nordea’s package designed for youths.

* Customer programs - Different kind of programs that have price advantages for the customer.

* Fair deal – When the interviewees mentioned the expression “fair deal” they explained it with the words: reasonable, good and secure.

* Household bank - A division in the bank concentrating on private customers.

* Phishing - Phishing is when an external part tries to attain private information through false E-mail messages.

2

Frame of reference

In this section the authors will provide relevant theories and models that can be connected to the purpose and research questions of the thesis. Definition of a brand creates a platform that evolves when describing, brand identity, building brand identity and positioning a brand.

2.1 Brand

definition

According to Kotler et al. (2001) a brand is a name, a sign, a symbol, a design or a combination of these that identifies the product or service of one organisation. A strong brand and the ability to stay in the market can lead to increasing brand value through the position one can reach in the market. A brand can have up to four levels of meaning:

• Attributes – A brand does not come alone. It also has certain product attributes. It is these attributes that make the consumer curious about the brand.

• Benefits – Consumers does not buy attributes, they buy benefits. Therefore, the organisation must translate these attributes into functional benefits.

• Values – A brand says something about the consumers’ values. If the consumer value high standard he or she will by a product that reflects high standard. • Personality – A brand projects personality. The brand will attract people that can

identify their own image to the brand image.

Swedish law states in the 1§ Varumärkeslag 1960:644 (which is the law for brands) that a brand can consist of all signs that can be reproduced graphical, such as words, names, symbols, letters, numbers and the form or look on a product or its packaging with the certainty that the signs can separate products from one organisations to another. What has been said in this law about products also applies on services. The definition of a brand in Swedish law consists of two fundamental requirements, which are that it must be possible to reproduce the brand graphically, and one has to be able to separate one brand from another brand (Melin, 1999).

Melin and Urde (1990) states that the brands original purpose is to separate the organisations own brand from their competitors brands. A strong brand can create a strong brand loyalty among the consumers. Another important purpose the brand has is to serve as a quality guarantee. That does not mean that there must be a high quality but that the quality of a brand is consistent.

2.2 Brand

identity

Any clear definition of what defines a brand identity does not exist but in everyday life the characteristics of brand identity is what the brand stands for, what purpose it has and what makes it unique. Upshaw (1995) stated the meaning of the term brand identity as “the identity is the brand’s unique fingerprint which makes it one of a kind” (cited in Melin, 1999). For a brand to be competitive throughout time there has to be a consistency and sustainability during the brand identity development (Melin, 1999). Both Melin (1999) and Kapferer (2001) states that one might resemble the brand identity whit a genetic code with a plan for the brand identity’s development.

There are six questions that have to be answered in order to be able to get a clear picture of the brand identity according to Kapferer (2001):

• What is the brand’s particular vision and aim? • What makes it different?

• What need is the brand fulfilling? • What is the permanent nature? • What is its value or values?

• What are the signs that make it recognisable?

It is important to have a document that answers all these questions to be able to control and market the brand. Organisations do unfortunately create their graphical design of their brand before knowing what the brand stands for. This is not good considering that the brands graphical design must reflect the meaning of the brand (Kapferer, 2001). Another view of brand identity is that the brand provides direction, purpose and meaning. Aaker (1996) states that “Brand identity is a unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers from the organisation members”. Furthermore he states that brand identity consists of twelve dimensions organized around four perspectives. These perspectives and dimensions are:

• The brand as a product – product scope, product attributes, quality/value, user/ users and country of origin

• Brand as an organisation – organisational attributes and local versus global • Brand as a person – brand personality and brand customer relationship • Brand as a symbol – visual imagery/metaphors and brand heritage

These perspectives are very different. The goal of these perspectives is to help the marketer clarify, enrich and differentiate an identity. Not every brand has to use all of the perspectives. However, all brands should consider all perspectives and use those who are helpful in order to inform the customers what the brand stand for (Aaker, 1996).

2.2.1 Identity and Image

Melin (1999) explains that within the brand management industry, identity is equivalent to image. Since identity and image are closely related to each other it is easy to confuse the concepts. The simplified explanation of identity and image is that the image is the view the consumer has towards the product and the identity is what the organisation wants the brand to stand for. Identity and image are two important components. The organisation must understand the image of the brand before it is possible to clarify the identity of a brand.

Kapferer (2001) has a contrary opinion to Melin’s (1999). He argues that the brand identity must be clear before one might state the image since the image is a result and an interpretation of the identity. Before projecting an image to the public, the organisation must know exactly what they want to project.

2.3 Building

Brand

Identity

Melin (1999) identifies two identity carriers: primary and secondary identity carriers. The primary identity carrier is the brand. He says that the brand name must remain the same even when brand extension takes place. In other words, this part of the identity is static. The secondary identity carrier consists of the brands packaging, logotype and symbol. In the development of the identity the market communication plays a part as well and this can be change over time without the risk that the brand will lose its identity. In the development process of the brand, the identity carriers the organisation chooses should strengthen each other and together creates a strong and homogeneous identity.

2.3.1 Core Identity & Extended Identity

According to Aaker (1996) brand identity consists of a core identity and an extended identity.

Figure 2-1 Aaker’s core identity (Aaker, 1996)

2.3.1.1 Core Identity

The core identity is the timeless essence of the brand. It is central for both the meaning and success of the brand. The core identity is most likely to remain the same when the brand enters new markets. The core identity will remain the same even though the position and communication strategies will change. The core identity should include elements that make the brand both unique and valuable. Examples of core identity elements are trust, quality, value and innovation (Aaker, 1996).

2.3.1.2 Extended Identity

The extended identity includes elements that provide texture and completeness. It adds details that help portray what the brand stands for. Examples of extended identity elements are personality, logotype, slogan, relationship and product scope (Aaker, 1996).

2.3.2 Sources of Identity

The sources of the brand identity are interesting since they are the ones that consist of the tools that the organisations can use when developing the brand identity. Kapferer

(2001) discusses seven different sources that express a brands identity: product, brand name, brand characters, visual symbols and logotypes, geographical and historical roots, the brands creator, advertising. Aaker (1996) describes four brand identity perspectives: product, organisation, person and symbol. Aaker’s perspectives and Kapferer’s sources are tools that an organisation can use when developing the brand identity. The idea with the tools is that they give the opportunity to create and communicate a brand identity. We have chosen to use Aaker’s four perspectives since Kapferer’s seven sources are imbedded in these perspectives.

Figure 2-2 Aaker’s sources of identity (Aaker, 1996)

2.3.2.1 Product

Aaker (1996) states that product-related attributes plays an important part when one should identify the brand since they are related to the consumers experience of the brand and to situation where the consumer has to choose. He divides the product perspective in six parts while Kapferer (2001) only states two. The first is that there are always products that are associated to the brand. He also states that geographical and historical roots can affect the brand identity, which Aaker (1996) agrees upon.

2.3.2.2 Organisation

The organisation behind a product can be of great importance when building a brand identity. Kapferer (2001) states that the culture is the most important part of a brand identity and believes that the organisation and its values are the starting point when developing a brand identity. Aaker (1996) states that the brand as an organisation sometimes is a part of the core identity of a brand. If that is the case, the focus lies on the organisation behind the offer rather than on the product itself. Organisation perspectives, such as innovation and quality, are created among the employees, the culture and the values in an organisation.

2.3.2.3 Person

The brand as a person perspective suggests a brand identity that is richer and more interesting than a brand built on product attributes. Like a person, a brand can be perceived as being competent, casual and formal. By creating a strong personality the organisation can create a bond between the brand and the consumer if they have the same personality (Aaker, 1996). According to Kapferer (2001), the creator of the brand and the identity of the creator are important sources of the identity since it is the creators’ thoughts and ideas that are the foundation of the brand. By creating a personality of the brand, the relationship between the consumer and the brand gets less complicated (Aaker, 1996).

2.3.2.4 Symbol

According to Aaker (1996) the symbols are the glue that holds the identity together and that makes the brand easier to recognise. He states that everything that represents the brand is symbols and also highlights three kinds of symbols: visual imagery, metaphors and heritage. The visual imagery consists of logotypes, design, offices and stores, persons and other visual symbols and he states that a strong visual symbol contains a lot of the brand identity and it should be enough to see the symbol in order to be reminded of the brand. Kapferer (2001) sees the visual symbols as an expression of the identity that can help the consumer to understand the culture and personality of an organisation. Metaphors can be used to enrich the symbols with meaning.

An interesting heritage can be used to symbolise the essence of a brand (Aaker, 1996). Kapferer (2001) also discusses the heritage of a brand and states that a brand has the ability to speak. The brands communication with the society through commercials creates history, culture, personality and gives a picture of the typical user.

2.3.3 Kapferer’s Identity Prism

According to Kapferer (2001), the brand identity can be seen as a hexagonal prism that shows the development of a brand. This theory builds on that there is a sender and a recipient. The main task for a brand owner is to develop an identity, so-called core identity, which will last for a long time. If brand owners manage to create this identity they have been able to create a brand with distinguishing features and a personality. The six aspects of the prism define the identity of a brand and the boundaries for a brands change or development. The concept of the prism derives from the basic idea that the brands can speak. A brand cannot exist if it can not speak. A brand that does not communicate will become obsolete, forgotten and a brand without a purpose.

Figure 2-3 Kapferer’s Identity Prism (Kapferer, 2001)

2.3.3.1 Picture of sender and recipient

In the sender perspective there are physique and personality. Brands physical qualities are the distinguishing features that are associated with the brand. They are the attributes

that distinguish the brand. A brands physical appearance is important but it is not all. Questions that have to be answered in order to develop a brand are: What is it concretely? What does it do? What does it look like? These physical attributes are important for the brand but it is not all. A brand has a personality of its own. By communicating, it builds up character. The way in which it speaks of its product or services shows its personality. The easiest way to create a personality for a brand is to use a spokesman or a figurehead that makes the decision for a consumer easier (Kapferer, 2001).

In the recipient perspective there are reflection and self-image. A brands reflection is the communication that reflects the characteristics of a consumer or a user. A confusing situation frequently arises since the organisations sometimes find it hard to separate the reflection from the target. The target describes the potential consumer or user while the reflection shows how the consumer wishes to be seen when using the brand. A brand speaks to our self-image. As reflection is the targets outward mirror, the self-image is the targets own internal mirror. Through our attitude towards a brand, we develop an inner relationship with ourselves. The brand stands for the values that the consumer can connect to which their personality and self-image builds around (Kapferer, 2001).

2.3.3.2 Relation between sender and recipient

Culture and relationship is the connection between the sender and the recipient. A brands product arises from a culture. Culture is the values that inspire the brand. This aspect is at the core of a brand. The culture differentiates the brands and gives us the key to be able to understand the differences between brands. The culture is also the aspect that links the organisation and the brand together. A brand is also a relationship. This clearly shows in the service industry. By definition, a service is a relation that tells us that all brands have a connection with something that creates a relationship with something else (Kapferer, 2001).

The brand identity prism also includes a vertical division. The attributes to the right are those that build the brand from the inside. The attributes to the left are those that give the brand its outward expression (Kapferer, 2001).

2.4 Positioning

Kotler et al. (2001) state that the first thing a company, in our case a bank, should do to create a successful strategy is to find a customer group, where they have a competitive advantage through differentiation. Then through positioning get into the consciousnesses of the customers. Because the company that has the best position in people’s consciousness is the company that people first will think about and thereby create a valuable competitive advantage against the competitors. Positioning is therefore a linchpin in today’s marketing and a way to create a place, a position, on the market. A company that wants to have a well considered position plan has to evaluate four basic questions before they choose a strategy (Melin, 1999).

1. What position do we have now?

How do the customers apprehend the company? 2. What position do we want to reach?

The chosen position has to agree with the overall strategy, business idea and the segment, which the company acts on.

3. Which competitors do we have to budge?

In marketing you have to challenge and budge at the competitors. You need to have a clear view over the market’s opinion on the competitors and their position, not just to have a good insight over your own company.

4. Can we stick it out?

To create a position that the company is satisfied with is not something that happens overnight. It takes time, patience and liquid assets to reach their sighted position.

2.4.1 Positioning Strategy

Kapferer (2001) states that positioning is a two-stage process; first the organisation must indicate to what category the brand should be associated and compared, secondly the organisation must indicate what the brands essential differences are in comparison to the other products and brands of that category. Melin and Urde (1990) talk about the same concept but they refer to it as Unique Selling Proposition (USP). The USP means the part of a product that is considered to be unique for that brand.

According to Kotler et al. (2001) there exist many different position strategies for positioning a brand. Depending on what product benefits an organisation wants to highlight, a position strategy can vary a lot. According to Ries and Trout there are three alternatives for positioning strategies (cited in Kotler et al. 2001):

• To strengthen the current position of the brand in the consciousness of the customers.

• To search for new unoccupied positions that are sufficient valued that the customers take a liking for it.

• To depostioning or repositioning themselves and take a step back from the competition. You point at another new direction, niche, and follow that path instead.

When the company has identified a number of different competitive advantages the company’s position should be based on them. The next is step to choose the best advantages and then mediate the chosen position in an efficient way to the market. A company has to decide how many and which competitive advantages they want to communicate to the market.

According to Kotler et al. (2001) many marketers have the opinion that a company only shall communicate one advantage to the market and with this approach develop a unique sell position, which can be the best quality, best service or the lowest price. The more attributes a company communicates to the market the bigger is the risk to get an unclear and a vague position. To prevent to get in this position a company should avoid three positioning mistakes:

• The first mistake is under positioning, which means that the company fails to position themselves at all at the market.

• The second mistake is over positioning. The company communicates to a narrow view of the company to the customers.

• The third and last mistake that a company should avoid is a confused positioning. This implies that the customers get an unclear view of what the company really stands for.

2.4.2 Positioning a Brand

Positioning according to Kapferer (2001) is used to distinguish brands. Positioning a brand means emphasising the distinctive characteristics that makes the brand different from the competitors’ brands and the appealing characteristics to the consumer. The brand positioning, according to him, is an analytical process that are based on four questions, which we will interpret from the view of the banking industry: What? Whom? When? Against whom?

1. A brand for what?

This refers to the brand promise and consumer benefit aspect: For banks they are offering different financial services

2. A brand for whom?

This refers to the target aspect. For instance, some services are targeted to youths through customers programs and some services such as retirement plans are for other segments.

3. A brand for when?

This refers to the time when the product will be used. For example savings accounts where your salary is transferred.

4. A brand against whom?

This question defines the main competitors, i.e. those whose clients we believe we can steel. In Sweden the traditional banks with many branches historically have been competitors but the increased internationalisation and technical development have made competition harsher.

  Figure 2-4 Kapferer’s brand positioning (Kapferer, 1998)

These four questions are helpful when positioning the brand. The questions also help the organisation to give a clearer picture of their position to the consumers (Kapferer, 2001).

2.4.2.1 Brand Pyramid

The brand pyramid is developed by Melin and Urde (1990) and describes the basic conditions to establish a brand. The pyramid foundation consists of brand, product and positioning. The goal for the organisation is to find a balance between these components to be able to reach the target group, which is the fourth component of the pyramid. The components of the pyramid are a strong entity since the brand often is created from the product quality and the positioning is dependent from both the brand and the product.

Figure 2-5 Melin & Urde’s brand pyramid (Melin & Urde, 1990)

The brand has an important role in the brand pyramid since the consumers connects the brand to the product and its characteristics. It is the brand that differentiates the product of one manufacturer from the product from the competitors and creates the opportunity

for brand loyalty. Together the different components of the pyramid create an extra value to the consumer. This extra value also contributes to brand loyalty which every organisation strive for to be able to grow in the market. If a consumer comes back, you have achieved brand loyalty (Melin & Urde, 1990).

Positioning is important for an organisation to able to be successful in the market and its purpose is to create a place for the product in the market and to place a picture of the product in the consumers mind. The purpose of the positioning in the pyramid is to communicate the products unique characteristics to the consumer. The positioning takes it place in the brands advantages and the extra value of a brand must reach the consumers clearly (Melin & Urde, 1990).

The position is not only used to inform the consumer about the products strengths and weaknesses but also to inform the consumers about how the brand is compared to competitive brands. So how do organisations create an image in the consumers’ minds? Ries & Trout says that the easiest way to enter the consumers mind is to be first. The first brand that enters a market gets twice as large market share as the second one to enter the market. When a brand has the leading position in the market, advantages from the leading position can be used for years to come (cited in Kotler et al. 2001). To position as the market leader is often neither successful nor effective. Instead, the organisation should find a spot in the consumers’ mind that no one still has reached (Melin & Urde, 1990).

2.5 Arguments of chosen Theory

Since the purpose of this thesis is to investigate how banks explain their brand identity and how they use their brand identity when positioning, the authors believes that basic theory about branding will provide relevant knowledge concerning the phenomenon of a brand.

A brand consists of different elements that give the brand its identity. When researching the topic of brand identity the authors have chosen theories that will provide the reader with knowledge concerning the different elements that a brand identity is built upon. The theories will also provide the authors with knowledge concerning brand identity, which will be useful when solving the research questions, and fulfil the purpose.

Building brand identity can be done in several ways. The authors have chosen theories conducted by Kapferer (2001) and Aaker (1996) regarding how to build brand identity for this thesis. These theories are applicable to the research questions of this thesis and provide the authors with knowledge concerning how brand identity can be built and is also give the authors a complete foundation of what brand identity is and how it is built. When positioning a brand, the brand identity has to be clear in order to be able to positioning the brand as effective as possible. When investigating whether the banks use their brand identity or not when positioning which is one of the research questions, theories regarding positioning as well as positioning a brand are presented.

The theories presented above are considered according to the authors to be valuable in order to interpret the empirical observation and to fulfil the purpose of this thesis.

3 Method

In this part, different research strategies will be discussed and the authors chosen case study objects are motivated. The authors will also state the data collection method that will be used and how the data will be presented and analysed. Reliability and validity are considered as well.

3.1 Qualitative

approach

When selecting a method, is it important to choose the method that best reflects the objective of the paper. There is a risk when making research that the results are influenced by the choice of method. Method is the tool and technique used to obtain and analyze research data, including for example questionnaires, observation, interviews, and statistical and non-statistical techniques (Saunders, Lewis and Thornhill, 2003) Data can be divided into qualitative and quantitative data. If a qualitative research is conducted it refers to non-numerical data or data that not have been quantified and qualitative research consist of words, texts and sentences, which is more, open to information about a subject than a quantitative research (Saunders et al., 2003). Holme and Solvang (1991) states that the qualitative method concerns gathering information that can provide deeper understanding of the problem. The qualitative method depends on closeness to the object one studies. According to Trost (2005) a qualitative study should be conducted if the purpose is to gain deeper knowledge about a problem or to find a pattern.

This paper is based on a qualitative approach, mainly because the purpose of this paper is to interpret words and not numbers, on how banks explain their brand identity and brand position. A qualitative interview also involves a deeper insight about the subject and because the data we analyze derive from statements it will be most suitable with a qualitative approach. It is also important in this investigation to be open to new data inputs and not as in the quantitative method where one collects data with strict theories and models. According to Saunders et al. (2003) qualitative research characteristics are less structured than the quantitative study and the main purpose with qualitative study is to create an understanding for the meaning of a certain phenomenon or experience. There are some negative aspects of using qualitative research and the main issue is that the reader must take into consideration that the data collected are subjective, since the researcher interprets the data. However, the authors have tried to be as objective as possible when evaluating the data that have been collected through face-to-face interviews.

3.2 Case

study

A case study is based on qualitative data where one studies a few cases more deeply either at a specific occasion or over time. We decided to conduct a comparative case study between the Swedish banks Nordea and SEB. A case study should be based on both qualitative and quantitative primary- and secondary data (Christensen, Andersson, Carlsson & Haglund, 2001). This thesis only includes qualitative data, which made it impossible to generalize statistics. The authors however, do not consider this to affect the result of the report since quantitative data should not be valuable to reach the purpose and answer the research questions since they do not rely on in-depth answers. In order to receive a higher degree of generalization we could have chosen more

organisations to analyze. This however would provide the analysis with less in-depth data that will affect the result of the report.

Robson defines a case study as “a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evidence” (cited in Saunders, 2003). A case study can be used to answer the questions: what, why and how which will provide the authors with the answers that will contribute to solve the problem and help the authors to reach the purpose.

3.2.1 Sample choice

The authors chose the Swedish banking industry since we consider that market to be interesting due to the rapid changes in the industry. There have been a number of mergers and acquisitions between banks in Sweden, for instance the merger between Nordbanken and Merita, which created Nordea, and the merger between Föreningsbanken and Sparbanken that turned into Föreningssparbanken, but nowadays is called Swedbank. When mergers and acquisitions occur brand issues become important since you have to create a new brand from the original companies and values. Since the authors believe that all organisations are aware of their brand identity in different ways it makes it intriguing to investigate how banks in particular interpret their brand identity and how their views differ from each other. Furthermore the authors chose Nordea and SEB since they are the two leading banks in the Swedish market, see introduction figure 1-1.

3.3 Data

collection

According to Saunders et al. (2003) studies can be classified depending of their purpose as well as by the research strategy that is used. The classifications that are used most often are exploratory, descriptive and explanatory. This paper can be classified as a descriptive research for which the purpose is to generate an accurate picture of a situation. When conducting the research, the data that have been collected are of descriptive nature.

The data can be divided into two different types, primary and secondary data. According to Saunders et al. (2003) the difference between these two data types is that primary data is collected specifically for the research project being undertaken and secondary data is used for a research project that were originally collected for some other purpose. This paper is based on both primary data, through interviews, and secondary data, through annual reports, websites and statistical reports.

3.3.1 Primary Data

Primary data can be collected in different ways. One may obtain the data through interviews, questionnaires and observations (Saunders et al., 2003). In this case the primary data was collected through in-depth interviews with employees at Nordea’s and SEB’s headquarters.

The interview questions (see appendix 1) are based on the theory and therefore there is a list of questions to cover; however during the interviews follow-up questions were asked as well. Interviews can be done in different ways. According to Saunders et al. (2001) there are structured, semi-structured and unstructured interviews. In this case

unstructured interviews has been used which are informal. One would use these to explore in depth a general area in which you are interested. These are referred as in-depth interviews. Not as in structured interviews where you used questionnaires based on a predetermined and standardised questions and semi-structured where the questions differs form interview to interview. Trost (2005) states that qualitative interviews should be delimited to a small number and preferably consist of four to five interviews. He further states that a large number of interviews create an unmanageable material and difficulties to get a deeper knowledge. He also states that a few well-conducted interviews are more valuable than a large number of not so well conducted interviews. From what Trost (2005) states the authors chose to conduct the interviews with, what the authors presume, key employees within Nordea’s and SEB’s marketing department in order to understand how banks in the Swedish market explain their brand identity and how they try to position. The authors believe that these employees have the positions in the organisation where the greatest knowledge about branding issues is situated. One of the authors conducted the interviews, which were conducted as a face-to-face interview. Trost (2005) states that there is an advantage with conducting an interview with more than one interviewer since the interviewers can support each other. If the interviewers are well coordinated they can conduct a better interview with a higher degree of information and understanding, contrary to if there would have been only one interviewer, but there is a risk with being more than one interviewer due to the fact that the interviewee may feel outnumbered. This aspect is supported by Trost (2005), which further states that this, in the case of more than one interviewer, must be avoided.

The interviewees are:

• Tomas Björklund (2007-11-17) Marketing director Sweden, Nordea • Anders Edlund (2007-11-17) Communication partner, Nordea • Mats Levin (2007-10-29) Responsible for brand track, SEB

• Helene Jansbo (2007-12-11) Marketing responsible, Life and pensions, SEB The people that have been interviewed are all situated in Stockholm at Nordea’s and SEB’s headquarters. After the conducted interviews there were in some cases shortcomings in the collected data to make a full analysis. Hence, a few questions were asked after these occasions via e-mail and telephone contact in order to complete the analysis. (See appendix)

To avoid biased answers the questions were not of leading characters. The interview questions were based on the theories presented as well as the research questions. To ensure as good answers as possible, the questions were sent in beforehand to each person in order to give them a chance to prepare answers to the questions. As a motivation for a trustworthy participation the people interviewed were guaranteed access to the full report by a promise to send them the final thesis.

The authors have used the same unstructured questions to all interviewees, but some follow-up questions were asked in order to gain a complete understanding of their opinions and thereby the whole organisations’ common opinions. The authors believe that these people are the most suited to present the opinions that Nordea and SEB stands for. When conducting the interviews a tape recorder was used. According to Wallén

(1996) a tape recorder is a good instrument to use when conducting qualitative interviews, as long as it does not interfere with the conversation. The authors insist that a tape recorder is a preferable instrument to use, in order to make sure no information would get lost. Trost (2005) agrees with Wallén’s (1996) opinion that a tape recorder is preferable. He also states that interviewer can focus on questions, answers and the interviewee instead of focusing on taking notes and since only one of the authors conducted the interviews a tape recorder was a good tool for collecting the data. Still, there can be a disadvantage to use a tape recorder since it might make the interviewee less comfortable with giving answers in this particular situation.

3.3.2 Secondary Data

The secondary data that have been gathered have its origin from different sources. We have used articles in written media, journals and annual reports. The authors have used the secondary data as a foundation for background knowledge. The annual reports have helped the authors to gain information and knowledge about the banks. When discussing the importance of a brand, different journals have been considered.

Saunders et al. (2003) present some disadvantages with using secondary data, it may be collected for a purpose that does not match your need. Secondary data can be collected for a specific purpose that differs from the research question or objectives. Other disadvantages can be no real control over data quality and initial purpose may affect how data are presented. The authors do not see this as a problem with the data collected since the journals are written with the purpose of explaining the importance of a brand which matches the purpose and research questions that this thesis is based on. Furthermore the authors believe that the information gathered from the annual reports is reliable since they have to correspond to the Swedish law (Bokföringslag, 1999:1078). Even though the annual reports are written in another purpose then the purpose of this thesis, the authors still believe that the information gathered will be useful in order to gain knowledge concerning the banks.

3.4 Reliability

and

Validity

When conducting a research with secondary sources is it important that they are viewed with same caution as primary sources. It is also important that the report collect empirical findings that reflect the reality. According to Saunders et al. (2003) you need to be sure that the data will be able to answer the research question or objectives and you will be allowed access to the data.

One way to evaluate primary and secondary sources is to use the concept validity and reliability. The degree of reliability measure to which extent data collected can be trusted (Saunders et al., 2003). Christensen et al. (2001) states that data can be trusted if the study can be repeated with the same result. Christensen et al. (2001) further states a limitation with the measure of reliability. The limitation is that the qualitative data that are collected, in our case through interviews, are made in a specific context. Since reality is in constant change, it is impossible to collect identical data that are to be measured and therefore the concept of reliability is irrelevant in a qualitative research. Yet, there are other criteria that can be used to measure the value of the qualitative analysis. These criteria are linked to the concept of validity (Christensen et al., 2001).

Validity is mainly about trustworthiness, in other words, how well the result of the report agrees with the reality. This is called internal validity. Furthermore validity is about the degree of generalisability, which is defined as external validity (Christensen et al., 2001). The degree of validity is to which extent data collection methods accurately measure what they intended to measure. Secondary data that fail to provide the information that are needed in order to answer the questions or objective will result in an invalid answer (Saunders et al., 2003). The data is to an extent valid since we believe our sources are the people most suited to give the answers that Nordea and SEB stands for. Hence the authors believe the collected data is valid. One weakness with the method is that we have relatively small sample. This makes the result of the report quite restricted since we did not make a random sample from the full population and only investigated two of the Swedish banks. This will affect the result in the way that it does not provide us with a clear result that applies to the full population, and therefore it can be hard to generalize.

3.5 Data presentation and analysis

The data in the empirical findings will be presented in a clear way that is easy to understand. To ensure this, the authors have chosen to present the empirical findings with the same structure that the theoretical framework is presented in. This will also provide the authors with a clear view of the empirical findings that will make the analysis easier.

According to Kvale (1997) the interview materials that are written down creates a proper foundation for the analysis. The interviews were analyzed and written down and translated word by word directly after each interview in order to get a complete picture of the compiled material. Furthermore Wallén (1996) states that this is crucial, because you forget essential information quickly if you do not process the material in directly. The analysis part will be presented with the same structure as the theoretical framework and this will provide the thesis with a red thread that makes it straightforward to follow.

4 Empirical

findings

This chapter contains the result from the interviews with Nordea and SEB. For simplify the reading the result will be presented with the same structure as the theory. Starting with brand identity, and followed by building brand identity and brand positioning.

4.1 Interviews with Nordea

The authors will here present the results from the interviews with Tomas Björklund, Marketing director, Sweden and Anders Edlund, Communication Partner.

4.1.1 Brand identity

A brand benefit in Nordea is their customer programs that include being a benefit customer or a plus customer and included in the programs are prices that follow what level of benefit customer you are. Every customer and/or family has a personal bank man that gives one point of entry if help or advices are needed. Nordea sees that focus like a form of segmentation for them. They are also packaging products different, such as the special Check in-package that is developed for youths. Their corporate customers are divided regarding of size and Nordea provides one point of entry even for them. Via one point of entry you have access to the whole Nordea network of experts. The second big part in terms of brand benefit is the size of Nordea, since they are considered to be a big bank with a local approach (Thomas Björklund, personal communication, 2007-11-17).

Everything that you do in the company is branding if you live it exactly, but they think you need to combine three different divisions for being successful;

• Marketing • Communication • Human Resources.

Brand image also involves the amount and quality of publicity that Nordea receives and how they act on the market. The moment of truth though is when customers meet Nordea, with other words in their branches, Internet bank or phone bank and that is the reason why they want to keep their branches clean and updated. Another important aspect is how good ambassadors’ employees are for the Nordea brand in contact with customers(Thomas Björklund, personal communication, 2007-11-17).

A key issue for Nordea image wise is to erase their old image as a state owned bank. Nordea’s customer stock is enormous and having the most satisfied customers overall is almost impossible, but on the other hand they want to make their benefit customers and private banking customers to be immensely satisfied. In comparison to SEB, they are not having a special focus in any customer group. If Nordea is said to be the “big bank with the human touch” SEB is the opposite and a traditional bank and Nordea can therefore be categorised as more modern. SEB is about 1/3 of Nordea’s size so the difference in size is significant and another aspect is that Nordea also are much bigger on the other Nordic markets. The problem with having a strong focus in the corporate side that SEB has, is that you are really sensitive for fluctuations. Administrating a real estate loan is much easier and cheaper compared to administrating funds; since you do not have to pay fees for brokers e.g., but still Nordea is trying to move their image more

towards the corporate side. Their objective is not to create a traditional image like SEB, but illustrate and show their competence in asset management. (Anders Edlund, personal communication, 2007-11-17).

Nordea wants to create an image as a bank where you are proud of being a customer because of their size as the biggest bank in the Nordic countries and also have the best resources. They have reached that position in Finland and are the premium bank there. In Denmark they are the second most popular bank after Danske Bank and they have a good reputation there. Their brand image in Sweden is an issue though and their branches are in general in need of renovation. Currently a project is running with the purpose to tone up branches in strategically important places in the bigger cities. They will plan the branches with the starting point from their customers view and important issues for them when visiting a branch. They will build branches that allow different kinds of advising services as their branches are an environment for selling and advising. In the branch environment customers shall be taken care of and all routine procedures shall be directed to the Internet bank. Their new branches are also included in their new brand image and brand position. Nordea wants to create an image so that more financially strong customers want to have all their banking services by Nordea and attract people who have a need for doing much business with the bank. They administrate the unemployment benefit scheme and the social security, which automatically creates an image of a bank with a rather low status (Anders Edlund, personal communication, 2007-11-17).

Products are always possible to copy but their own behaviour is impossible to copy so they need to have a strong focus in that. Competence is a key word for Nordea and they want to highlight and communicate their competence. Among Swedish customers Nordea is associated with the finance crisis in the 1990s and for being a bank owned by the Swedish state. Furthermore, they are also associated as the human bank and trusted partner in financial matters. When companies fusions or change brand names they have to establish new values in the eyes of a customer and a bad maintained brand has a long and difficult way to go if their brand gets seriously hurt, though a good managed brand can recover quickly. Nordea consider themselves to have an advantage since they are a prominent and trusted partner foremost in the financing activities For establish a relation to their customers they are using their customer programs and try to establish a personal contact through their personal bank men. By doing this, Nordea wants to establish and maintain a relation between their customers and themselves. For increasing their whole customer relationship they approach the customers not being benefit customers, since they many times are customers in other banks. In terms of core values they are promoting them intensively right now and their target involved in all these values is increasing the overall customer satisfaction (Thomas Björklund, personal communication, 2007-11-17).

• It’s all about people • Making it possible

• Great customer experience

Nordea’s brand identity relies on their core value “Making it possible” which is a base for their overall brand platform. The value “It’s all about people” is the foundation and that is how they try to communicate their brand identity externally (Thomas Björklund, personal communication, 2007-11-17).

To reach “Great customer experience” is a huge different compared to reach a “Good customer experience” and demands a lot more. For attain a “Good customer experience” you do not have to exceed expectations while it cost large amounts of money exceeding expectations. For reaching the next level you must have the good and financially strong customers and they are attracted by good performance and a good rate of return. Also word of mouth is an important factor for success (Anders Edlund, personal communication, 2007-11-17).

When building their brand identity Nordea works internally as well as externally and from 2007 they have new core values that imbue all divisions on management level. Nordea will work with communicating what Nordea stands for and what they want to be associated with, all the way out to their branches. They are currently now working in a cross-functional team with brand issues that combines different business areas thoughts and ideas. When deciding how to communicate the brand externally top management discusses how they want their customers to apprehend them and how they want Nordea to develop. Nordea considers the biggest banks in Sweden to be their main competitors. Traditionally Nordea and Swedbank have targeted the same segments while SEB and Handelsbanken have targeted the same segments on their side (Thomas Björklund, personal communication, 2007-11-17).

4.1.2 Building brand identity

Nordea builds their brand identity from their core values and they want to communicate “Great customer experience” externally to their customers. They want to increase Nordea’s image and status and doing that is a costly and long-drawn process. Compared to their competitors they almost have the same products, but Nordea is still rather young and may have a more modern approach compared to their competitors. They are also focusing heavily on their customer programs, which their competitors do not do to the same extent. Since Sweden is their biggest market it is pronounced to be their main market. One of their goals is therefore to have the most satisfied bank customers in Sweden (Thomas Björklund, personal communication, 2007-11-17).

“Satisfied customers make more business with us and more business leads to better profitability” (Tomas Björklund, personal communication, 2007-11-17).

When Nordea was established in 2001 it was clearly said that a special focus should be put on their customers and it is even more significant these days. For reaching their goal of having the most satisfied bank customers in Sweden they also have the view that their employees must be satisfied. They believe their customer programs and their customer orientation is what mainly make them different compared with their competitors and in Sweden specifically they have the image of being the big bank with the human touch (Thomas Björklund, personal communication, 2007-11-17).

When developing marketing campaigns the project group in the Marketing division is involved when shaping the campaign. Top management is an actor in big campaigns setting up guidelines what they want to communicate. In minor campaigns the marketing division, household division and the corporate division are the actors involved and together with their advertising agency the project group design the campaign. Their advertisements are focusing on their values “Great customer experience” and “It’s all about people”. Nordea has some products under a different brand name. In Sweden they sell cards called First Card under supervision from Nordea