8/10/2019 BN 150 Repositioning as a Third Generation Microfinance Institution Corporate Branding at ASKI

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__________________________1SeeMicroSaveBriefing Note # 27 Corporate Brand and Identity - Why They Are Important for MFIs2SeeMicroSaveIndia Focus Note # 26 Market Strategy Development and 3rd Generation Microfinance in India. The 3G-MFIs are typically driven bytheir mission to be one-stop-shop for their clients financial services needs. Hence they offer a variety of financial and non-financial services as part otheir strategy to engage with their clients.3 SeeMicroSave Briefing Note # 146 Listen In Order To Protect Clientsfor more details.

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MicroSave Briefing Note # 150Repositioning As A Third Generation Microfinance Institution:

Corporate Branding at ASKISwati Mehta and Nitish Narain

February 2014

IntroductionMicrofinance institutions often suffer from the stigma ofbeing viewed primarily as lending institutions, in spite ofoffering a range of financial and non-financial services.This perception is rooted in the fact that lending has been,and still remains, the core business of these institutionsmaking it extremely difficult to change the perception.Corporate branding is essential for the success of MFIs particularly those that seek to move beyond traditionalcore micro-credit business.1

As a market strategy, such third generation microfinanceinstitutions2 (or 3G-MFIs) seek to achieve marketpenetration by offering modified or new products for theirexisting client base, so as to meet their diverse financialneeds. By default, the majority of these clients areassociated with the MFI through its micro-credit business.This could further lead to a misplaced perception aboutthe MFI amongst those clients in absence of plannedcorporate branding efforts. In such cases, clients are eithernot aware that they can avail services other than credit, ormight not trust the MFI (especially for savings). In thisNote we present the case of AlalaySaKaunlaran, Inc(ASKI), a development NGO in the Philippines, whichgrappled with these issues in the absence of a corporate

branding strategy.

Background of ASKIASKI was born in 1986 as a vehicle for promoting anddelivering micro-enterprise development and socialservices in the Philippines. ASKI initially focused onmicrofinance (credit only), but overtime it grew andexpanded its offering to include other financial (insuranceand remittances) and non-financial services (such astraining, market linkages, enterprise development,community development, and business support services)offered through different business units.

ASKIs Brand Positioning Where it isDespite the expanded range of services, ASKI continues to

be known as primarily a lending institution. The reasonsattributed to this perception are:

Lending is still the core business and the entry pointfor the majority of its clients.

Heavy reliance on the field officers (whose keyresponsibility areas are linked to lending business)

to communicate with the clients leading to morfocus on lending.

Word-of-mouth from existing clients is a majosource of information further amplifying thmisplaced perception.

Absence of a corporate or institutional brand as result of which the microfinance brand (often usesynonymously with ASKI) becomes the defauparent brand since it assumes a dominant positioin the brand architecture (being the oldest branand biggest contributor to overall business).

These reasons act as barriers in ASKIs efforts treposition its brand among its clients and the communitat large.

ASKIs Brand Repositioning Where it wants tbeASKI wishes to be seen as a holistic social developmenorganisation that goes beyond microfinance.3 It wants tposition itself as a development institution which is:

dedicated to holistic development of the community

offering services beyond microfinance and lendinand

here to meet all or most of the clients needs credit, education, health, housing, and so on.

The repositioning will help ASKI to ensure that:

ASKIsBrand Persona

During a dip-stick brand image analysis researchMicroSave asked ASKIs clients and staff to define itsbrand personality. They were asked If ASKI is aperson then what are his or her characteristics?

The answers we received were:Clients: Helpful, supportive, friendly, people-oriented.

Staff: Caring, loving, family member, God-centreddedicated, helpful, respectful, and people-focused.

While the brand persona is aligned with ASKIs mission

the key words used by clients were loans, low interesrate, friendly staff, insurance which are onlypartially aligned with the corporate image that it seeksto achieve.

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8/10/2019 BN 150 Repositioning as a Third Generation Microfinance Institution Corporate Branding at ASKI

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a) there is consistency in the way it is positionedamongst existing and potential clients; and

b) it is differentiated from other competitors in themicrofinance sector.

Given the high level of awareness of the ASKI brand, itwants to leverage its strengths by re-positioning it as thecorporate or parent brand which should be perceived as aglobal development organisation committed to

holistic transformation of the marginalised sections ofthe Filipino society.

ASKIs Brand RepositioningStrategyASKI, with support from Opportunity International,Australia and MicroSave, is currently repositioning itscorporate brand to align with its overall vision and missionand the different business units. In doing so, it seeks tocapitalise on the existing strengths of its brand whichinclude: excellent customer service; being adaptive to clients needs; availability of insurance and other add-on products

(microfinance plus); courteous and respectful treatment of clients; affordable loan products; and multiple awards received locally and internationally.

The repositioning strategy is based on the review ofdifferent components of the corporate brand strategy asshown in the figure below:

ASKIs repositioning strategy entails four major actioareas:

1. Realign core strategy: ASKI will realign its corbranding strategy to accommodate the demands oall the business units. It will refine the branidentity components in order to better leverage thparent brand and ensure consistent use of logocolours, and taglines of all the sub-brands.

2. Develop clear internal communication plan: ASKwill ensure clear and consistent communication othe new brand and its essence to the staffbothead office and branch staff (especially the fielofficers). ASKI will use a variety of channels fointernal communication including videos, prinmeetings, trainings, and so on to ensure that thstaff has access to most updated product and policinformation.

3. Develop clear and consistent product marketinmaterial: ASKI will identify the key messages to b

communicated to the clients as well as non-clientand develop standard marketing material based othese key messages. The marketing materials wifocus on communicating the product benefits in more interesting and effective manner. In additioto stand-alone product marketing material, ASK

will develop marketing material that describes thcorporate brand and all services offered.

4. Monitor the progress of brand: ASKI will developbrand management strategy that will be used ttrack the success of the brand against measurablobjectives. This will entail conducting regular branimage analysis and review of communication plan

accordingly.

The above strategy is the first step towards repositioninASKI as a holistic development organisation. ASKI committed to execute the plan with sustained efforts fromthe senior management to achieve the desired results. Thdedicated communications unit will ensure closcoordination between the various business units so thathey are aligned with the corporate brand.

Financial(lending)Institution

FinancialServicesPlus

HolisticTransformation

LevelofBrandingEf

fortRequired Best aligned with mission

and vision

Very little competitors withsame positioning

Current view of most of thestaff and a few clients

Somewhat aligned withvision and mission

Current view of externalaudience (clients and non-clients)

Not aligned with visionand mission

DesiredBrand

Positioning

CurrentBrand

Positioning

Corporate

Brand

BusinessStrategy

Brand Image

Brand Identity

BrandArchitecture

BrandCommunication

BrandManagement

1. Realign corestrategy to cover all

businesses and

activities

2. Develop clearinternal

communicationplan

3. Develop clear andconsistent productmarketing material

4. Monitoringprogress of brand

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