Corporate Branding Strategies and Performance of Commercial Banks in Kenya
Kuria, Judith Nyambura
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Banks in Kenya continue to record decreased profitability due to face stiff competition from non-bank institutions. Corporate branding strategy provides direction and scope an organization takes in its journey to identify itself uniquely to its customers to ensure customer loyalty. It’s not just enough to create a brand since that will not help the company attain sustainable advantage. In order to have a brand development that is a success it’s important to have effective marketing strategies and also develop marketing programs. This study sought to establish the effect of corporate branding strategies on performance of commercial banks in Kenya. This study adopted a descriptive research design to determine the effect of brand awareness on performance of commercial banks in Kenya, to establish the effect of brand association on performance of commercial banks in Kenya, to examine the effect of brand attitude on performance of commercial banks in Kenya and to examine the effect of brand loyalty on performance of commercial banks in Kenya. The study was based on the Aaker’s Brand Equity model, game theory and contingency theory. The population consisted of 40 commercial banks in Kenya. Giro Bank and Habib Bank are in the process of being acquired by I&M and Diamond Trust Banks respectively while Chase Bank and Imperial Bank are currently under receivership. The census method was used in sampling. The study population was 40 marketing and finance managers currently working in selected commercial banks in Kenya. Primary and secondary data was used. Primary data collection involved self-administration of questionnaires. Secondary data was from books and downloading of financial reports from the internet. Pretesting and validation of the questionnaire was done by carrying out the pilot study. Analysis of the data collected was by use of SPSS Version 21. Data that was qualitative in nature was analysed using descriptive and inferential statistics while qualitative data was analyzed using content analysis. Data was presented in table and graph forms. The study found that brand awareness had a positive relationship with performance of commercial banks in Kenya; brand association had a positive relationship with performance of commercial banks in Kenya; brand attitude was statistically significant to performance of commercial banks in Kenya; brand loyalty had a positive relationship with performance of commercial banks in Kenya. The study concludes that brand awareness, brand association, brand attitude and brand loyalty is positively related to performance of selected commercial banks. The study recommends that banks should improve on their advertisement of their different products. This would increase people’s awareness of their brand which would in return increase the banks performance. The study also recommends that banks should embrace personal relationship with the customers this would make sure that the company creates brand association and also it would help in changing the attitude of the clients towards the bank products. The management of the banks should also come up with ways of strengthening their brands which would result to improved performance and banks should improve their brand and make it stronger so that it can increase loyalty from customers which would in return improve performance.