The effect of rebranding on Customer base of Consolidated Bank Kenya

Abstract

The purpose of this study was to investigate the effects of rebranding on Customer base, a case study of consolidated Bank Kenya Limited. Brand element is the visual or verbal information that serves to identify and differentiate a product. Re-branding is one of the key factors that marketers have to pay attention to in order to revive a brand that is becoming obsolete (Korakaj, 2009). The objectives of the study were to determine extent to which rebranding through the change in the company colours affects the customer base of the Consolidated Bank, to identify the effect of change in the Logo on the customer base of consolidated Bank and to determine whether brand positioning affects the customer base of Consolidated Bank. The research adopted a descriptive research design. The population of the study was 200 composed of customers of the Consolidated Bank and selected respondents from competitor Banks .A sample of 50% was drawn from the population using stratified random sampling. Data was collected by use of questionnaire. The study aimed to be useful to academics since it would give an opportunity for further research and will help the management of the bank to ensure proper implementation of the rebranding exercise. From the study the researcher aimed to establish the effects of rebranding on the customer base of consolidated Bank Kenya Limited. From the findings of the study the elements of rebranding of: brand colours change, logo change and brand repositioning were found to affect the customer base of Consolidated Bank. This was as depicted in the co-relation coefficients for the variables: brand colour change (0.873), logo change (0.632) and brand positioning (0.636). From the study the following recommendations were made: suggested advertising, use of bill boards, giving customers time to adjust to the new logo, popularizing the new brand colours through marketing and advertising, more awareness on the bank's products, identifying the target market more and conducting a market research to create a clear understanding of where the brand lies relative to competitors.