3. Branches built from the ground up will follow the new design concept, while the project
team refurbishes existing outlets. This process will require 3-5 years for completion.
3. Corporate Identity
By late 2003 and during 2004, it became apparent that BANK OF KUWAIT lacked the
necessary visibility and exposure in the market. Research showed that brand
recognition was relatively low among the banking public.
The lack of a corporate identify manual, and the Bank‟s low profile did not help to alleviate
the mixed perception of the public. Furthermore, studies revealed that while BANK OF
KUWAIT had good standing within the elderly Kuwaitis, it did not score highly with Kuwait‟s
new generation, and in a country where this generation accounts for 60% of the
population, this created the necessity to re-launch BANK OF KUWAIT with a new image.
The new logo was driven by research, the need for a degree of association with the group,
and the market trends in Kuwait and the world at large.
To support the positioning strategy, the Bank adopted „Making Life Simple‟ as a slogan.
The latter has and will continue to have positive implications on the way BANK OF KUWAIT
conducts business and serves customers.
The exercise delivered a corporate identity manual that will now govern all
communications, and will ensure consistency across all channels. Appendix „B‟
contains elements of this manual.
Furthermore, the slogan was translated further into three distinctive areas:
Grow, Shop, Bank. All retail products and services were re-classified under one of the three
sections.
Grow would engulf savings and investments, Shop will include loans and cards, and
Bank will contain electronic banking, accounts, and various services.
4. Team Effort
Project Phoenix brought together all areas of the Bank, and sub projects were launched
to support the initiative. HRD launched a massive training program to educate all staff on
the various elements of the new identity, ITD implemented changes on the front-end
system making it easier for front line staff and customers. IT also provided valuable
technical support for the kit-of-parts and lab branch.
Marketing and Business Development re-examined all products and services and
produced a new classification that is in tandem with the new approach. The division is also
working on infomercials, new cards, forms, products, and all other collateral, in addition to
planning the launch, which will be unprecedented in the history of the Bank.
Retail and private Banking provided needed support in terms of access to managers and
staff, feedback into all aspects of identity and branch design, including the internal
workflow and new roles of branch staff.
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4. Engineering worked towards fine-tuning the designs presented by the international
consultants. They also managed the relationships with suppliers for the timely delivery and
installation of quality material starting in the Lab branch, and the upcoming kit-of-parts.
5. Support
Project Phoenix could not have succeeded without the unwavering support from the
CMD and the CEO. Their input helped the team to meet deadlines and alleviate any
issues during the various phases of the project.
6. Brand value vs. Customer Expectations
The beginning of the transformation began when it became evidently Clear that there was a
mismatch between the bank‟s own brand values and customer expectations. This was
mainly the result of the sluggish change that accompanied the bank‟s privatization.
The new strategy was built around segments, in contrast to extensive products and
branding which characterize BANK OF KUWAIT‟s and all commercial banks‟ direction.
The strategy stimulates the „bundling‟ of products within 5 segments chosen around a
customer‟s life stage. The main impact of the strategy will be:
a) New brand re-positioning for BANK OF KUWAIT in the Kuwaiti market
b) Simplified product offering based on features and benefits in contrast to terms and
conditions
c) Sales driven by customer type and requirements, rather than matching
products/packages to customers. I.e. Ask first ; then choose the right product for the
customer. This will require a major change in the attitude and behavior of not only
branch staff, but HO divisions with influence on products, e.g IT, Operations,
Administration, Human Resources, Branches
d) Turning BANK OF KUWAIT into a people’s bank as will be evidenced in all
corporate communications. „People‟ will be the main theme of BANK OF
KUWAIT‟s advertising strategy.
e) Less emphasis on product names – diluted by over branding and lack
of differentiation.
f) Encouraging customers to visit their branch where a range of banking, and
affiliated products and services will be offered.
In its strategic plan, the bank decided to re-position itself within the highly competitive
banking sector in a way that reflects its new brand value and meets the expectations of the
targeted customer segments. This is represented as follows:
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5. The re-positioning towards a personal/contemporary quadrant meant a customer
centric approach. However, it was necessary to gauge the previously mentioned
mismatch between the brand value and targeted customer expectations in order to
prioritize resources and action plans.
This re-positioning required a review of the bank‟s brand value and the new
mission statement reflected the new value:
“With a long history and proven customer loyalty Bank of Kuwait will re-establish
its presence by constantly enhancing its image and updating its range of products
and services in line with customer needs and requirements, to become the most
recommended bank in Kuwait. The Bank will achieve this through a customer-
centric / relationship banking approach”
The common denominator between the new brand value and customer expectations
was SERVICE. However, before any initiatives could be launched, the bank had to
determine the current levels of service and areas where improvements should be made
in the short term. An extensive customer research program was launched to determine
customer satisfaction levels. The research was conducted by a professional market
research company and included face to face interviews as well as focus groups.
The Image of the Bank of Kuwait could be represented by that of an old educated aristocrat
who is still indulged in his past glory. The participant recognized the bank‟s history of
leadership; it is an organization from the past that they find difficulty now to see its
relevance. They consider the bank to have started a decline since the liberation of Kuwait
in 1990. The bank is blamed for its absence, unclear plan, and distance from playing an
active role in the market and trapped in stagnation.
Starting with communication, it seems the customers found the ads put by the bank either
too little, in the wrong media, or not attractive. In addition, the branches are not visible
enough: The logo is not clear, and the signage is either old or not eye catchy.
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6. One customer did not know that a BANK OF KUWAIT branch existed in LOCATION N
where he lives even internal communication, with existing customers, is not effective.
But the communication is not considered the core of the problem. After all “Kuwait is small
and success when exist is always known”. In that sense, the participants considered the
banks performance when judging its image, not the mere corporate identity.
The staff of the banks is “friendly” but “not professional”. They are “effective” when a
personal relation is developed, yet the staff turnover is high. Another problem lies within the
bank‟s policy which lacks flexibility. In comparison to its peer, BANK OF KUWAIT is viewed
at the bottom. Even banks which generated negative image attributes, such as CBK or
KFH, were considered successful with a pale image. CBK is very practical and sometimes
innovative. “It was the first to introduce many accounts including the Certificates”.
Back to BANK OF KUWAIT, in spite of its stagnation, yet its image does not suffer from
defect as the remains of its past glory is still in the minds of the elder participants. In
addition, its English past gives the bank a kind of prestige and status. Unlike Al AHLI,
whose image is low and passive?
BANK OF KUWAIT is viewed on the side of the market. When making the positioning
analysis, BANK OF KUWAIT was not mentioned among the competing banks. It was
described as impartial to the market and out of its game; not due to an inherent weakness
in its performance, but due to the management, the heritage of the institutions ruled by the
government. “BANK OF KUWAIT did not change when the rest did”.
When defending BANK OF KUWAIT, participants referred to the past; they repeated the
words “Previously” and to “Easiness”. On the other hand, when attacking the bank, the
participants referred to its lack of Ads / weak products / and bad Service (or absence of
recommendation by those who deal with the bank).
There is no reason why to open an account in the bank in the context of its image. Even
existing customers found it difficult to recommend the bank as “the service is good as long
as you have personal relations with the staff”.
Yet, the study demonstrated that the loyalty of customers to their own banks is weak. Most
of them deal with many banks, in order to get the best of each. They would be pleased to
open in BANK OF KUWAIT provided “the bank starts moving”.
What BANK OF KUWAIT is asked to do is to work on its image, products, and customer
service. The participants recommended that the bank firstly start internally by improving its
staff and its procedures. Makes it more customers oriented and recognize the differences
and needs of the market.
Second, the bank can introduce proper accounts or products. “BANK OF KUWAIT is not
asked to reinvent the wheel, it can imitate what comes up in the market” . Then, and in the
end, the bank can talk about it. There is no point to claim what the bank does not have. The
last Loan campaign, and the credit card campaign seem to have fired back, “there were
empty promises”.
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7. After what proceeded, it is clear that The Bank of Kuwait is suffering from a weak image.
The bank is too far to be understood. Being the first bank of Kuwait, and once leading the
sector through its modernism coupled with its English heritage, helped the bank
maintaining a certain degree of prestige and respect to the bank. But there is a lack of
admiration. The market feels pity for the bank. It is clear to what extent BANK OF KUWAIT
is subject to „Self Unfairness‟, especially that it had the privilege of having a history and a
potential to be different.
So far none of the banks seem to be really caring about its customers individually. No gifts
for new customers, no interest or special treatment for old customers, no record of needs
and requests, are but few examples. When asked about the ideal bank, the participants
mentioned basic requirements as their priorities, mostly “Loans” and “Good customer
service”.
The first step was to determine the relative importance of various attributes of the branch
environment to customers; a cross section of the results is shown below (weight out of 100)
Criteria Weighting
%
Staff image 10
Complied with dress code
Good personal hygiene
Visible BKME ID worn
Good posture
Serving the customer 40
Acknowledged
Smile
Appropriate greeting
Customer's name used
Friendly tone of voice
Courteous and friendly manner
Eye contact maintained
Undivided attention
Inter-staff discussion discrete
Excused if leaving to wait unattended
All transactions completed by one employee
Asked if any further service required
Thanked
Cross-sales initiative 10
Effort made to sell another product / service
Product knowledge 10
Sound product knowledge demonstrated
Confidentiality 10
Transaction and customer information handled
discretely
Transaction time 10
Transaction completed within BKME time standards
Branch telephone service 10
Picked up within 3 rings
Call answered with BKME standard response
Customer‟s name used
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9. The following provides a graphical representation of the satisfaction index over a period
of6 months:
Branch Environment Index
120
100
80
60
40
20
0
Red: Critical / requires immediate attention
Blue: Can be improved but not a priority
Yellow: High satisfaction score / capitalize for strategy
Model: Source: G-CEM
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10. The processes and touch points that required further investigation and were deemed
important to customers underwent further research. Below is a sample of the findings:
Average Queueing Time at Tellers
25
20
15
Time in Minutes
10
5
0
Location
Model: Source: G-CEM
In the above example, the stars show lowest queuing time while red dots show higher
than acceptable queuing times in four branches.
Research demonstrated that there were key areas of “Pleasure” and “Pain” as
per customer evaluation of the branch environment. These areas were as follows:
Pleasure Signage at Tellers
System availability
Cleanliness
ATM availability
Staff Friendliness
Pain External Signage and Directions
ATM Signage
Brochures Holders
Poster Displays
ATM enclosure
Staff product knowledge
Queuing time
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11. It was becoming evident that the status quo showed a mismatch between what the
bank‟s management thought of brand value and what customers really wanted. The
following displays this mismatch:
Model: Source: G-CEM
The above shows that while customer considered the bank‟s image as a key
differentiators and motivation to open and maintain an account ( N.B. this is due to cultural
influences in the country ) , the bank‟s executives paid little attention to this fact.
By considering customer experience across touch points and processes, the bank was able
to focus resources where they were mostly required. This gave birth to project “Phoenix “
that sought to re-brand the bank in line with the new strategy. Within the project, branch
layout, signage, queuing , and others factors that were considered as critical were
integrated into a new service model that portrayed the bank as modern and understanding
of its customers‟ needs.
Examples of the re-branding outcome are included in the following pages. The underlying
premise was that of a “shopping “experience rather than a traditional visit to the bank. The
branch became welcoming and customers were visiting the location more often to enjoy the
unique in-store interactive marketing technology and other innovative features.
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