Brand Process Thesis Saxo Bank Final After Defense

Copenhagen Business School
IMM International Marketing Management
BRAND M ANA GEME N T P R OC ES S

Design Brand Experiences to Maximize Shareholder Value
Case: SAXO BANK
Uriel Alvarado Cancino

Frederik Güldner Kolenda
Advisor: Richard Jones
Secondary Advisor: Larry Light
November 2007
Brand Management Process Master Thesis! 1

Acknowledgments
During the process of this project we received and combined knowledge from various sources. We
would like to thank all of those involved in the creation of this project.
Our thanks go to our advisors Richard Jones and Larry Light who not only helped us formulating the
concepts, but encouraged and assisted us with information and support throughout the writing of the
project. Larry Light was not only an active professor but also opened the doors to his network from
where we received first hand knowledge. We would like to thank David Aaker of Berkley University
for his energy and comments on our research topic. Our knowledge and the paper have also benefited
from management experts, such as Antonio J. Lucio, Senior Vice President at PepsiCo Int.; Margo
Georgiadis, Executive Vice President and Chief Marketing Officer of Discover Financial Services
LLC; Jeff Dunn former President at Coca-Cola- North America and Jim Lecinski Director of Google
in Central Region.
We would also like to thank Saxo Bank for their contribution with great insights, time, resources and
effort. We were in contact with different Saxo Bank managers through the development of the pro-
ject. We owe special thanks to Rabbe Ekholm, Chief Commercial Officer; Kasper Grønnegard, Mar-
keting Director; Birgitt Juel Christensen, Head of Corporate Brand; Ulrik Branner, Director Global
Business Development and Morten Skov, HR manager.
We would finally like to thank Hello Group and Kontrapunkt for taking the time to guide us with ex-
cellent advice and insights into their work, which certainly added value to our project.
The present thesis was defended on Monday the 26th of November 2007 at Solbjerg
Plads Copenhagen Business School.
The examiners representing the Copenhagen Business School were:
Internal/Advisor: Richard Jones
External: Søren Lommer
Grade old scale: 13
Grade new scale: 12

Executive Summary
This thesis centers on the management of brands. Particularly the phenomenon is examined through
studies from the financial service industry and the case study of Saxo Bank A/S. The findings reveal
that in order to satisfy today’s demanding customers, offerings should be thought of as experiences,
and created through internal processes with the aim of being innovative. The challenges are to suc-
cessfully develop, align and coordinate the internal processes, while at the same time incorporating
consumer insights in terms of wants and needs. In order to differentiate the brand, innovation needs
to be founded not only on the tangible features and functions of the experience but just as much on
the intangibles, such as the emotional rewards, the values and the personality of the brand.
At the outset, the study seeks to explore the trends, motives and drivers of the brand management
within the financial service industry. Consequently this thesis materialized from an initial explorative
research supported by theory and the case study of Saxo Bank.
Brand management in the financial service industry is today essential to survive in an increasing
competitive marketplace. Accurate consumer insights along with effective internal management of
resources are vital elements and the underlying premises of this thesis in order to reap the benefits of
a differentiated and relevant strong brand.
Consequently, the problem area of research in this study centers on the implications of the changes in
today’s economy, to the management of brands in the Financial Service Industry. Thus, this study is a
theoretical and empirical examination of 1) “How should companies in the Financial Service Indus-
try create brand experiences with the goal of maximizing shareholder value?” and 2) “How can the
stages of the brand management process be applied to a case?”
In the case study analysis, it is found that the developed brand management process applies well to
Saxo Bank. However as the focus on brand management has been almost non-existing, the company
needs to improve within many areas as outlined in the case conclusion. Conversely Saxo Bank has
through its remarkably strong corporate culture, established a solid foundation to leverage the brand
in the future.

TA B L E O F C O N T E N T S
1. Introduction! 6
1.1 Problem Statement! 7
1.2 Research Motivation! 8
1.3 Central Definitions! 9
1.4 Structure of the thesis! 10
2. Methodology! 12
2.1 Theories and Literature Choice! 15
2.2 Case Study Design! 16
2.3 Data Gathering! 17
2.4 Empirical Research! 18
2.5 Validity and Reliability! 22
2.6 Limitations of the Thesis! 25
3. Evolution and Trends of the Financial Service Industry and Brand Manag"#
ment! 27
3.1 History of brokers and the stock exchange! 27
3.2 Evolution and Trends of Brand Management! 30
3.3 Chapter Three Conclusion! 37
4. Brands as Resource Management # Theoretical Framework! 38

4.1 Theoretical Foundation! 38
4.2 Research Questions and Propositions! 42
4.3 Brand Management from Resources to Meanings! 44
4.4 Brands as innovative resource bundles! 50
4.5 Brand Management from Resources to Meanings through a Process! 55
5. Brand Management Process applied to Saxo Bank! 63

5.1 Applying the brand management process! 63
5.2 History of Saxo Bank! 64
5.3 Saxo Offerings, Touch-points and Experiences! 64

5.4 Stage 1: Brand Analysis Theoretical! 69
5.5 Stage 1: Analysis of Saxo Bank! 76
5.6 Stage 2: Brand Vision - Theoretical! 83
5.7 Stage 2: Saxo Bank"s Brand Vision! 90
5.8 Stage 3: The Design of Experiences - Theoretical! 93
5.9 Stage 3: Saxo Bank"s Brand Experience Design! 102
5.10 Stage 4: Operationalization - Theoretical! 108
5.11 Stage 4: Saxo Bank"s Brand Operationalization! 113
5.12 Stage 5: Brand Evaluation and Renovation - Theoretical! 118
5.13 Stage 5: Saxo Bank"s Brand Renovation! 120
6. Conclusion! 123
6.2 Theoretical Implications! 128
6.3 Managerial Implications! 129
6.4 Methodological Implications! 131
Bibliography! 133

1. Introduction
The pace at which the world is changing is accelerating every day. As a consequence we as humans
and organizations need to adapt increasingly faster and the ability to response to the changes be-
comes imperative for success in this new millennium. Jack Welch former Chairman of General Elec-
tric expresses this:
“When the rate of change inside the company is exceeded by the rate of change outside the company,
the end is near.”
During the nineties and the first seven years of the new millennium, the emergence and evolution of
the Internet and other technological advances have transformed the world. Today individuals have
the ability to collaborate, compete and consume globally in a more dynamic, transparent and liberal
way. Technology is a key factor contributing to this change, as it is through technical means that in-
dividuals and organizations can communicate faster, cheaper, having a global reach and being able to
access and exchange more knowledge simply through the use of a PC. These technological advances
have had an effect on the way companies compete and collaborate to satisfy consumer demands,
leading in many cases to product commoditization. The Internet has been the greatest force of this
commoditization; its capability for friction-free transactions enables instant price comparisons across
many offerings, physically located in different geographic regions; while its ability to rapidly execute
these transactions allow customers to benefit from time and cost savings. Consequently organizations
have been forced to adapt to the developments in the environment and to the changes in consumer
demands.
The financial service industry has been significantly affected by these changes and like many other
industries, found their products and services commoditized (Kevin J Clancy, 2001). Until recently,
the companies within this industry, have been protected by little transparency making it difficult for
customers to compare offerings and hence easy for companies to overcharge their offerings. How-
ever, the emergence of the Internet increased transparency and enabled customers to easily compare

price and offerings. With no discernible differences among brands, consumers select financial serv-
ices products based on price instead of product features or advertising. Consequently without a dif-
ferentiating brand companies will find themselves stuck in a low-price rut trying to out cheap their
competitors in order to maintain their market share1.
This paper will discuss the implications of the changes in the economy throughout the last decade
and their impact on the financial service industry. Grounded in the field of brand management it will
propose the necessary adaptations to models and frameworks to answer following problem state-
ment.
1.1 Problem Statement
“What are the major implications of the changes in the context of today’s economy, to the
management of brands in the Financial Service Industry?”
In order to answer this we set out with an exploratory research that serves to identify these implica-
tions and key elements, for further investigation. The exploratory research unveils the interrelation-
ship of these implications and elements and resolve in a set of research questions which allow for
further examination.
Research question 1:
“How should companies in the Financial Service Industry create brand experiences with the
goal of maximizing shareholder value?”
This research question serves to identify the important elements of brand experiences. Moreover it
aims at explaining the relationships between these elements and their connection to the field of brand
management. Based on this it seeks to propose a brand management process, that can be used within
the industry. Finally a set of propositions will be presented and subsequently tested through a case
study.
Research question 2:
“What do the stages of the brand management process consist of and how can the process be
applied to a case?”
1 Kevin J Clancy, 2001 “European Financial Marketing and management newsletter

The brand management process will be operationalized through a case study, from the financial serv-
ice industry. The Danish online investment bank, Saxo Bank presents us with a suitable case that al-
lows for investigation: a multinational company, which emerged in the 90´s and has rapidly ex-
panded through innovation led profitable organic growth. Saxo Bank is currently facing the chal-
lenge of creating a strong brand to leverage from its evolving capabilities and to sustain as a signifi-
cant player in the increasingly competitive market.
1.2 Research Motivation
The research and foundation of this present thesis is motivated by a number of factors. Firstly, we
believe that the changes the world is undergoing, presents some challenges that the companies have
to acknowledge. A main contributor to this change derives from the technological advances. Thomas
L. Friedman describes the key technological developments that have transformed the economy in his
bestselling book “The world is flat” (2005). These developments include the PC (which allows every
individual to produce his own work in digital form), the Internet and the fiber-optic cable (which en-
able individuals and organizations to access more digital content and global resources) and software
(which empowers individuals and organizations to coordinate the exchange and production of
knowledge in digital form). Changes, that all have had a major effect on the consumer behavior, and
hence also the organizations.
Secondly, the literature review revealed that not much literature has attempted to construct a brand
management process that captures the mentioned changes of the 21st century. Kapferer presented in
1992 the “Identity System” followed by Aaker (1996) the “Brand Identity” as processes to build a
strong brand. However, as they originated prior to, or at least at the same time as, the radical changes
of the 90´s, these processes do not capture the changing elements and have to some degree turned
obsolete. Later several authors have presented brand management in this new context (Smith &
Wheeler, 2002; Chernatony, 2006; Ind & Bjerke, 2007), but none have explicitly formulated a proc-
ess or model to follow. Instead various theories and concepts on how to incorporate this into brand
management have been presented.
Thirdly, little emphasis in the financial service industry has historically been placed on brand man-
agement due to an extensive amount of “low hanging fruit” (Von Hippel, 2007). However recent
years has shown a gradual shift towards increasing focus on this area e.g. Deutche Bank, Citi Group,

HSBC, Zecco, E*Trade. As a consequence of the increasing transparency the Internet has crafted, the
competition has increased, which has eliminated the “low hanging fruit” and required a mean of dif-
ferentiation to avoid commoditization.
At the same time the industry has historically been product centered rather than costumer oriented.
This has led to many advanced and technical products based on what the state-of-the-art technology
allowed, rather than focusing on the customers actual needs.
1.3 Central Definitions
The following section serves to outline the main concepts of the thesis and the way in which they
should be understood to avoid any misinterpretations.
Brand
Brands are often confused with logos or trademarks. A trademark is a distinguishing name, sign,
symbol, or design, or some combination of them, that identifies the goods or services of one seller.
While a brand is a distinctive identity that differentiates a relevant, enduring, and credible promise of
value associated with a product, service, or organization and indicates the source of that promise
(Larry Light 1999). Following a strong brand can be defined as a distinctive identity with which con-
sumers are familiar, which promises a special experience and comes from an authoritative source.
Brand Management Process

Is the process that seeks to maximize returns to shareholders by understanding both the internal and
external environments of the firm, crafting a vision, understanding its consumers, sourcing the neces-
sary resources and aligning the organizational value adding processes to create and maintain a prom-
ise of a relevant and differentiated brand designed experience.
Brand promise
“Buy this brand, get this experience.”
The brand promise is what should ultimately define the offering and should be the essence of the ex-
perience. A promise of value and deliver on that promise is critical if a company is going to differen-
tiate itself from its competitors and take a solid claim in its intended market. The offering encom-
passed by the product, service and or experience will act as the evidence for this promise.

Relevance
Occurs when two conditions are met; first there must be a perceived need or desire by customers for
a submarket defined by some combination of an attribute set, an application, a user group, or other
distinguishing characteristic. Second, the brand needs to be among the set considered to be relevant
for that submarket by the prospective customers. Being relevant within a submarket, however, is no
longer enough. There are two other challenges, first the submarket associated with the brand should
be a relevant one; and the brand should be considered by customers to be an option with respect to
another possible existing or emerging submarket (Aaker 2007 pg. 61).
Differentiation
Differentiation relates to the ability of a brand to promise and deliver a unique value proposition
based on a configuration of features, functional benefits, emotional and psychological rewards, val-
ues and personality.
Experience
An experience is the totality of the cognitions given by perception; all that is perceived, understood,
and remembered. By perception we mean the recognition and interpretation of sensory stimuli based
chiefly on memory. This definition entails learning, knowledge, sensing and feeling emotions. Expe-
rience as an offering occurs whenever a company intentionally uses services as the stage and goods
as props to engage an individual (Pine and Gilmore, 1999).
1.4 Structure of the thesis
The structure of a paper is always determined by its purpose, problem field and context, in which the
research is carried out (Andersen, 2003). It serves to guide the reader by providing an overview of
the thesis and the content of the different chapters.
The thesis is therefore is divided into chapters. This present chapter 1 introduces the context, states
the problem as well as research questions that will be examined. Furthermore it elaborates on the un-
derlying motivation and purpose of the thesis.
Chapter 2 describes the research strategy and methodology the paper relies upon. It explains the rela-
tionship between empirical research and theory and their connection to the context and case example.
Additionally it raises the question of the validity and reliability of the paper, as well as it provides the
reader with an overview of the limitations and constraining factors.

In chapter 3 an introduction to the phenomenon of brands and the rise of brand management is pre-
sented. Moreover the initial exploratory research serves as the foundation for identifying key trends
within brand management. Both theoretical as well as empirical findings are presented and their in-
terrelationships sought to be explained. These key trends and findings from the exploratory research
serve as groundwork for the research questions, and the accompanied set of propositions.
Chapter 4 constitutes the theoretical framework. With point of the departure in the research questions
and propositions the chapter examines these and provides the basis for a later conclusion on the re-
search questions and evaluation of the propositions. Finally it presents an overview of the proposed
brand management process and places it within a designed brand framework.
The 5th chapter sets out by developing the stages of the process and justifying the content of each
stage. Subsequently, the brand management process is applied to the Saxo Bank case. The chapter is
rounded up by a case-conclusion along with management recommendations for Saxo Bank.
The final chapter 6 is concerned with presenting the implications from a theoretical, managerial and
methodological perspective. Perspectives from the case as well as perspectives from the overall
framework are presented and discussed. Lastly, the thesis is rounded up by concluding remarks to the
degree on which the thesis can be deemed successful.

2. Methodology
We will in the present chapter elaborate on the methodology applied in this thesis. The research con-
ducted is an attempt to make valid inferences from the real-life scenario of current brand manage-
ment practices. Our initial problem statement was “What are the major implications of the changes
in the context of today’s economy to the management of brands in the Financial Service Industry?”.
The open and emergent research area suggested that we opted for an initial open exploratory research
approach. Furthermore, due to the highly ambiguous and undefined nature of the problem area at
hand, the choice of a case study design was made, in order to profoundly investigate the problem
statement. As a result, an explorative case study was chosen as appropriate means to investigate
brand management in the financial industry. This allowed for the academic research to be examined
in practice at an organizational and management level, through the study of an international company
with headquarters in Denmark. Thus, the perspective of this thesis is from an international angle and
complies to the focal points set by the Copenhagen Business School: “The thesis must treat issues
relevant in an international context” and “The thesis must be written within the field of marketing,
management or strategy”.
Henceforth, a qualitative research method was employed as a consequence of the explorative nature
of the problem formulation and the choice of a case study as a tool to unravel the research area. Sub-
sequently, a more detailed account will be given for the many implicit and explicit selections that
shape the research strategy behind this thesis. In order to unravel the problem statement, we have
chosen to utilize an initial research approach based on a broader exploration method with inductive
reasoning. Due to the novelty and broad scope of the phenomenon, this was chosen since the data
collection for this thesis had to be more extensive, than a search for the impact of already known fac-
tors. An exploration approach and inductive reasoning are important in science in part because de-
ductive logic alone can never uncover new ideas and observations2. Therefore, we found the meth-
odological approach based on an initial exploratory methodology to be perfectly suitable as an in-
strument to define what later became an analysis of a case study and problem area. Stebbins supports
2 Stebbins, R. 2001 “Exploratory Research in the Social Sciences” Sage Publications

this (2001): “The main goal of exploratory research is the production of inductively derived generali-
zations about the group, process, activity, or situation under study.” We found that this open ap-
proach would enable us to look for interesting phenomena in the novel research area of this thesis.
Following the initial exploratory research methodology it was possible to create an interplay between
diverse streams of data both inductively and deductively. During an exploratory study, researchers do
think deductively at times, although they do so largely within their emerging theoretical framework
rather than within established theory and a set of hypotheses deduced from it 3.
Figure 2.1: Research design
Source: Own based on Sekaran, 2003.
As depicted in figure 2.1, the strategy of the exploratory research followed a three level stage where
each level was examined through research dedicated solely to gain understanding and insights to the
particular level. The first level was the “management-level” where we carried out research in order to
draw a picture of brand management from leading practitioners and authors. The second level was
the “industry-level”, where research was carried to gain understanding of the financial service indus-
try and the interrelationship between marketing/media agencies and financial service companies. The
3 Stebbins, R. 2001 “Exploratory Research in the Social Sciences” Sage Publications pg. 7
third level of research was the “company-level”. As the name suggests the research at this level was
focused on the organizational level. This initial explorative approach pointed at a more specific prob-
lem area.
As presented in figure 2.1, the steps in the research design are linear, but in reality the process this
thesis has gone through, has been highly dynamic and iterative. Thereby, a solution to uncover the
problem and to frame a problem formulation was sought obtained by a series of repeated operations,
where theory was investigated and explorative case interviews were conducted going backwards and
forwards.
There are also deductive elements to our research as shown in figure 2.1, in order to build on the the-
ory and examine given concepts within the phenomenon. As a result of the limited amount of estab-
lished theory in the area, we found it relevant to firstly analyze other streams of theory and subse-
quently develop our own theoretical framework from which to investigate the case study. Thereaf-
ter, five study propositions are deduced from the theoretical literature review. The propositions serve
as a basis for further discussion and extrapolation in the analysis of the case study 4. Thus, they will
serve as a point of interaction between the problem statement, the theory and the empirical findings.
The elements in the framework are connected via the theoretical propositions that seek to elaborate
on the research questions. The components deducted from the theoretical framework and research
areas that were identified from the exploratory research served as the core of the research design.
Finally, the selection of an appropriate unit of analysis occurs when the primary research questions
are accurately specified (Yin, 2003). Hence, the unit of analysis in the present paper was established
after the explorative research had taken place. This led us to focus the case study on the internal
brand management process as a unit of analysis. This is not only reflected in our choice of theory for
the case but it is embedded in the thesis as one of the focal points. Its purpose was to set time and
scope boundaries to define the beginning and end of the case. The concept of the process is key to
the thesis as the unit of analysis and as the outcome in terms of a brand management process. Fur-
thermore, as sub-units of analysis we utilized the different stages proposed by the theoretical frame-
work. The choice of an embedded design (with multiple units of analysis) over a holistic one (with a
single unit), was to avoid a typical problem with the holistic design where the entire case study may
be conducted at an abstract level, lacking any clear measures or data. Secondly, it was chosen to
avoid the risk of shifting the nature of the case study (Yin, 2003). Thus, we believe that the embed-
4It must be noted that the propositions are not formulated as hypothesis assigned certain numerical variables for empiri-
cal testing
ded design with its set of subunits of analysis, served as an important device for focusing the case
study inquiry. Nevertheless we acknowledge that this approach also has its pitfalls as it could lead
researchers to solely focus on the subunits. We tried to avoid this by constantly considering the main
unit of analysis.
2.1 Theories and Literature Choice
Since academic literature has not yet taken the management of brand experiences based on internal
processes under severe scrutiny, the theoretical platform for performing the initial steps towards em-
pirical analysis was not well founded. Therefore, theory has been ‘borrowed’ from other academic
areas, in order to illuminate and analyze the management of brand experiences within the financial
industry. This can also be labeled a triangulation of theories, where models and concepts from one
discipline are utilized to explain situations in another discipline (Easterby-Smith et al., 1999). Thus,
the thesis does not focus on one theory as such, but rather on main independent concepts. Conse-
quently, theories have been ‘applied’ from the academic field of brand management, but also from
academic areas including the resource base view, “experience economy”, knowledge management,
human resource and innovation management. One of the primary reasons for exploring existing lit-
erature was the aspiration to achieve an interaction between the existing theory and the analysis from
the exploratory research and the case study, in order to explain interrelationships and to build upon
the theories with new insight from practice.
The objective of this thesis is not to develop a formal and in-depth discussion of the different exist-
ing theories and epistemological approaches. Rather, the aim of the literature review and theory has
been to identify and label concepts and explanations that contribute to investigating the problem
statement. It should be noted, that the literature has tended to focus both on a historical understand-
ing of the development of the brand management field, and on the leading researchers within the dis-
tinct streams of theory. As a result, this thesis introduces the main theories, but more importance is
attached to leading researchers. This further underlines the need not to focus strictly on theories, but
on the concepts and the findings in the theories. Thereby, the theories are utilized pragmatically,
whereby we may employ other supporting research, when the main research utilized is not deemed
sufficient. Subsequently, we have chosen to structure the thesis around a theoretical framework in
order to investigate the problem statement and its underlying research questions. The framework is
an exploratory model, with specified propositions from the theoretical elements. These propositions,

will function as the outset for further analysis. Thus, the insight in the propositions will be extrapo-
lated within the analysis to see if they prove relevant in the case study. In that way, theoretical gener-
alization is provided, which hopefully leads to new insights, explanations and understandings about
the investigated phenomenon.
2.2 Case Study Design
We find that single explorative case study is well suited for this thesis, due to the explorative frame-
work and search for a more profound knowledge. Yin (2003) compares case studies to other research
methods by concluding that case studies are the preferred strategy when ‘how’ or ‘why’ questions are
being posed, when the investigator has little control over events, and when the focus is on a contem-
porary phenomenon within a real-life context. Lipset, Trow, & Coleman, (1956) support the use of a
single case study research by stating that cases are important as they can support the goal to expand
and generalize theories (analytic generalization) and not to “particularizing” analysis (statistical gen-
eralization). In other words case studies are generalizable to theoretical propositions and not to popu-
lations or universes. The key is to accurately describe the case and through induction5 compose a
generalized set of knowledge. However, it is important to distinguish between case specific findings
and general findings.
As mentioned, the process of contributing to the theory from the case study research has involved
constant iteration between the research steps. When the research had been carried out, the process of
the actual analysis of the gathered data took place. This meant drawing parallels between the empiri-
cal findings and the theoretical considerations in order to extract meaningful insights. After the
analysis of the gathered data had been conducted, a reverse approach to the data processing took
place. Instead of analyzing the problem by splitting it up into components, a synthesis took place
where components were gathered into a solution. In practice this can be seen as splitting up a puzzle
to look at each piece on its own and then gathering pieces one by one in a new way, but where the
pieces still fit together in a new holistic expression. The new “puzzle” was then contextualized and
its implications and strengths were evaluated.
5 A generalization
based on observed instances, or the making of such generalizations, in the usual
working method of scientists
The theoretical propositions encompassed by a brand management process were then applied to the
case of Saxo Bank. As Saxo Bank represents a company, which emerged in the 90s; it served as a
suitable case example. By operationalizing the conceptual brand process that was developed, poten-
tial practical implications surfaced. These served as the premises for the following discussion on the
brand management process ending up with the final conclusion.
Looking from a theoretical point of view there are two main reasons for applying the case study to
Saxo Bank. Firstly, the case served as a unit of explorative research where the dynamics and interre-
lationship across functions and departments have been studied. To successfully develop and imple-
ment a brand management process it was vital to have an understanding of such factors. Secondly,
the case allowed for the study of specific units of analysis to ground the theory on empirical exam-
ples. Thirdly, the case served as a mean to test the propositions from the theory, which referred to the
developed brand management process. The purpose of this was to see what implications surfaced
once the model was operationalized. Based on the characteristics of the implications it was deter-
mined whether these were case specific or general problems of the model. The implications that
turned out to be case specific were consequently adjusted in the case. If the implications on the other
hand proved to be general, the findings were adjusted in the brand management model before turning
back to the case. In that way the model was constantly reinforced through looped improvements and
adjustments.
2.3 Data Gathering
To address the problem statement of the present master thesis, several data sources were considered
to carry out the research in a successful way. An approach of triangulation was employed as a bal-
ance between the various kinds of data collection methods. Methodological triangulation suggests
that multiple methods of data generation substantiate the validity and the reliability of the theoretical
findings. Yin (2003) states that when a case study has been triangulated, more than a single source of
evidence has supported it. Mintzberg (1979) describes the synergies between theory and data as fol-
lows: “For while systematic data create the foundations of our theories, it is the anecdotal data that
enable us to do the building. Theory building seems to require rich description, the richness that
comes from anecdotes. We uncover all kinds of relationships in our hard data, but it is only through
the use of this soft data that we are able to explain them”.

Thus, this research design is based on a combination of the exploratory research in the three selected
levels, as previously described including interviews with key knowledgeable people, primary sources
and secondary sources, and theory and more specific data gathered through interviews, company
data, statistics and observation for the case study. It is acknowledged that the secondary sources used
are based on data collected for other studies probably with specific objectives, which constitute a
main disadvantage of utilizing them. However, we believe that it is possible to gain valuable in-depth
insights into the motives, challenges and management of brand experiences through these distinct
data sources. In similar terms, Yin (2003) argues that the conclusions in a case study are likely to be
more substantial and precise if these are based on several different sources of information. The main
categories of data sources are presented below:
• Academic research and literature

• Reports: i.e. consulting, market, institutional reports
• Business press and news papers
• Websites
• Field trip interviews
• Company documents and material: i.e. annual reports, company publications, surveys
• Case study interviews & observations
2.4 Empirical Research
In order to achieve a broad-spectrum analysis, the empirical research consists of a string of inter-
views within the three group levels as previously described; Interviews with leading authors and
practitioners, interviews with companies involved in the industry and interviews carried out inside
Saxo Bank. We chose to carry out face-to-face interviews due to the subject of the thesis and the al-
most non-existent alternative data sources. Almost all the interviews were conducted as individual
interviews, except for two group interviews with the marketing agencies. The interviews conducted
followed a semi-structured method with open-ended questions. This was in order not to limit the
scope of the interviews but on the other hand guide them in the desired direction. The interviews
took departure in open conversations from 60 to 120 minutes duration, where we attempted to ex-
plore aspects of the management of brands in the financial industry from the perspective of the three
selected groups. These interviews built a solid foundation for our case analysis supported by obser-
vations.

In this way we were able to reveal important internal issues and considerations that the interviews
alone would have not uncovered. All in all we conducted face-to-face interviews with 13 respon-
dents, some of which where interviewed more than once.
Below the interviews conducted in the three levels are outlined in Table 2.1
Management Level Industry Level Company Level
Dr. Larry Light, Brand Manage- Kontrapunkt Jasmi Bonnén, Sen- Rabbe Ekholm Chief Commercial
ment Expert Practitioner ior Strategy Consultant; Marie An- Officer (CCO)
dersen, Communication Consultant
Dr. David Aaker, Brand Manage- Hello Group Bo Damgaard, Mar- Kasper Grønnegaard, Director of
ment Expert Academic keting Consultant; Martin Linde- global marketing
gaard, Senior Consultant
Margo Georgiadis, Executive Vice Jyske Bank Frank Pedersen, Di- Birgitte Juel Christensen, Head of
President and CMO, Discover Fi- rector of Marketing and Communi- Corporate Brand
nancial Services LLC cations
E*Trade Christian Mørk Laurid- Ulrik Branner, Director of global

sen, Senior Retail Sales Manager business development
Morten Skov, Human Resources

manager
Kim Fournais, CEO and Co-owner
We would like to emphasize the notion of ‘elite respondents’. The elite interview is characterized
by the fact that respondents quickly seize the initiative and put forward fairly long statements. This
means that the respondents have been very active and well articulated (Andersen, 1990). We have
had the fortune to be able to interview a number of outstanding high-ranking key people within the
Brand Management field. These elite respondents encompass practitioners, academics, directors and
managers, which are intensely involved in Brand Management in the Financial Industry. We find
that these interviews to a great extent have heightened the quality of the research in this thesis. They
have to a good degree provided us with in-depth and very valuable information for our analysis.
Moreover, we have gained access to and been able to interview some of the most highly recognized
and cited experts in the field. Henceforth, we consider the quality and the value of the interviews and
the information gained very high. The experts, directors and managers did not contest the disclosure
of their interviews. Nevertheless we decided in some cases to offer anonymity upfront in order to
avoid fallacious answers. Very extraordinary was that Larry Light agreed to act as our secondary
advisor for the thesis. Uriel Alvarado was introduced to Larry through previous work engagements in
the US. This resulted in that we have been in constant dialogue with Larry on matters related to

brand management and drawn from his more than 40 years of experience within this field. As such
Larry is a stakeholder of the project. However his interests in the project are neutral and he is being
quoted on equal premises as primary data sources.
Management-level
The empirical data gathering in the management level entailed a 2-week study trip to San Francisco
were we attended the marketing strategy forum hosted by the American Marketing Association
(AMA). We attended the conference in order to gather knowledge and insights from the leading
authorities within this forum. Before leaving for San Francisco we prepared two semi-structured in-
terviews6, which were conducted with Larry Light and David Aaker, two main speakers at the con-
ference. Through some networking we also succeeded in discussing our topic with some of the other
speakers. Among the other speakers were Margo Georgiadis, (Executive Vice President and CMO,
Discover Financial Services LLC), who presented us with the challenges of building a global brand
in the financial service industry; Jeff Dunn the former President of Coca-Cola- North America; An-
tonio Lucio, Chief Innovation and Health & Wellness Officer at PepsiCo and Jim Lecinski Director
of Google in Central Region7. Attending the AMA conference truly contributed to our understanding
from a practical perspective and served as a vital part of our exploratory approach.
Industry-level
In order to get an understanding of the financial service industry and how brand management as a
practice is utilized, we carried out several interviews with local and international players related to
the financial service industry. Besides our study of the Saxo Bank case, we had the opportunity to
interview key managers from E*Trade, which is considered to be among the leaders within the on-
line trading industry. As it can be read in the interview8 we gathered knowledge about the success
factors of building a global brand in the financial service industry.
Furthermore, we interviewed HelloGroup 9 and KontraPunkt 10, two Danish agencies specializing in
marketing and design consultancy within the financial service industry. The purpose of these inter-
views was to uncover what type of services were being provided, the methods used and how compa-
7 Appendix: 3.14
8 Interview with E*Trade, see appendix 3.7
9 Interview with HelloGroup, see appendix 3.5
10 Interview with Kontrapunkt, see appendix 3.4
nies including Danske Bank and Saxo Bank collaborated with these media agencies, the degree of
integration with the companies’ internal processes and the areas in which they were involved. Finally
we researched and visited Jyske Bank –a Danish retail bank that has recently introduced a new brand
management strategy based on customer experiences.
Company-level
We carried out empirical research within Saxo Bank. This research was constituted by 6 key top
management interviews along with our observations of the internal working flows and processes
many times embedded as tacit knowledge. The interviews were carried out with Kasper Grønnegaard
director of global marketing11 , Ulrik Branner director of global business development 12, Morten
Skov manager from Human Resources 13, Rabbe Ekholm Chief Commercial Officer (CCO) with re-
sponsibility of Marketing, Product Development and Quantitative Analysis14, Birgitte Juel Chris-
tensen Head of Corporate Brand and a brief discussion with Kim Fournais CEO and Co-owner (dur-
ing the introduction course)15.
Case Study Observation Saxo Bank - Integrating work and research

Following our initial interviews with Saxo Bank, their need for a brand strategy was evident. Conse-
quently, we presented our research agenda and ended up both being employed by the bank. Frederik
Kolenda was offered a part time position within the Business Development department and Uriel Al-
varado in Marketing. This had two significant advantages directly related to the thesis. Firstly, get-
ting access to data. Once being an employee it was easier to craft interest and commitment across
different departments. This allowed us to carry out in depth interviews with key top managers from
the necessary departments. It also resulted in access to confidential data that would otherwise have
been off limit. Secondly, it allowed us to act as internal observers and thus gain an understanding of
the organizational culture, working processes and leadership. Such issues that can be described as
tacit knowledge, which we as employees could observe and subsequently translate into explicit
knowledge in the thesis. Insights we would not have acquired if we would not have been part of the
company’s daily operations.
11 Interview with Kasper Grønnegaard, see appendix 3.9

12 Interview with Ulrik Branner, see appendix 3.11
13 Interview with Morten Skov, see appendix 3.12
14 Interview with Rabbe Ekholm, see appendix 3.8
15 Interview with Kim Fournais, see appendix 3.13
2.5 Validity and Reliability
In order to judge the quality and logic of the research design, it has been made subject to four meth-
odological tests, as presented by Yin (2003): construct validity, internal validity, external validity and
reliability. The notion of validity centers on whether or not the research data reflect the truth, reflect
reality and cover the crucial matters.
The first test is called construct validity, which refers to the correct operationalization of the con-
cepts. That is the data collection and composition processes. For instance, since this study, among
others, sets out to analyze the process of managing a brand, we needed to specify the stages that we
examined. Thereafter, it has to be demonstrated that the selected operational measures of the stages,
do in fact reflect the challenges encountered in the case. Thus, in order to increase construct validity,
multiple sources of evidence, converging on the same set and finding were utilized. By building on
prior research, validity is ensured in the selection of concepts and the following analytical research
processes. The academic research and theories have particularly been chosen from the device that
they are well founded empirically either through statistical testing or in-depth case studies.
One criticism of the paper may be in relation to the scope of the word “process” that is embedded in
the discussions. Naturally, the concern over selection bias in the applied concepts to study the “proc-
esses” is valid, since providing an exhaustive assessment of all possible internal processes is beyond
the scope of this thesis. Nevertheless, the selection of the applied theories was connected to the em-
pirical field, the explorative research and the desk study we have carried out.
The second test is on internal validity, which refers to the process of analyzing the data and the ana-
lytical tactic of pattern matching. Although, Yin (2003) states that it is mainly of concern for causal
or explanatory case studies in which the investigator aims to make the causal claims like why event x
led to event y, it will briefly be elaborated on. Internal validity can also encompass the issue of mak-
ing valid interferences in the present exploratory case study. The present paper relied on two analytic
strategies to judge internal validity. Firstly, based on the theoretical framework and the exploratory
research, theoretical propositions were made to be studied more in detail on the process of managing
brands. The propositions should shape the data collection plan and are given priorities to the relevant
analytic strategies (Yin, 2003). The question is, if such interferences were valid? Secondly, in order
to strengthen the internal validity, we developed a descriptive framework for organizing the case

study into the specific stages of the brand management process. This type of framework can later
lead to the enumeration, tabulation, and analysis of the various aspects of the case. In this sense the
descriptive approach can be used to identify and focus the units of analysis and an overall pattern of
complexity that can ultimately be used in a causal sense to “explain” the question of study (Yin,
2003).
The findings of the study case are then compared against the propositions and discussed. We
strongly believe that the focus areas suggested by the propositions and process stages in the investi-
gated case study, derived interesting insights into the management of brands in the financial industry.
The third test revolves around external validity and deals with the problem of knowing whether a
study’s findings are generalizable beyond the immediate case study. In this thesis the case study de-
sign relies on analytical generalization by generalizing findings to theory.
The aim of this thesis is to expand and generalize on theories (analytic generalization). As noted by
Yin (2003): “The use of theory, in doing case studies, is not only an immense aid in defining the ap-
propriate research design and data collection but also becomes the main vehicle for generalizing the
results of the case study” (p. 33). Criticisms of qualitative methods and case studies in particular are
that they lack statistical validity. It is argued that generalizations cannot be made on the basis of case
studies because it is not possible to quantitatively test the propositions (Gummesson, 2000). One of
the concepts that has been particularly difficult to measure and judge in this thesis is the extent and
ways in which experiences are being created. However, we do not seek to quantify whether this is
happening and to what extent, but rather to contribute to the theory and add new knowledge in the
field through the analysis of the case by applying the theoretical framework and discussing the
propositions.
Subsequently, generalization from the case study is not straightforward, and it is limited to only be
able to represent the industry and type of company studied. However, we believe that the case ana-
lyzed represents aspects of companies in the “new economy” in the sense that it allows for capturing
actual circumstances and conditions faced by companies which emerged with the online possibilities
brought by the internet during the 90s. However, since we have chosen to study only one case, the
danger is that the findings are not varied enough and that it could have led to generating knowledge
of already known factors within the specific case company. Nevertheless we believe that the specific

situation faced by the company of study and the characteristics of the industry to which it belongs,
allowed for relevant insights to emerge related to our research questions.
A good level of reliability means that the research instrument will produce the same data repeatedly,
and any variations in the results only will be due to variations in the things being measured
(Denscombe, 2003). The objective is to be sure that if a later investigator followed the same proce-
dures as described by an earlier investigator and conducted the same case study all over again, the
later investigator should arrive at the same findings and conclusions (Yin, 2003). It has been disputed
that it is not straightforward to specify a set of criteria for what constitutes a good qualitative study.
Strauss and Corbin (1990) argue that reproducing a social phenomenon can be difficult because it is
nearly impossible to replicate the original conditions under which the data were collected or to con-
trol all the variables that might have affected the findings. Nonetheless, careful data gathering in
conspicuous manner has been done to make the interpretations as reliable as possible. To increase
reliability and to minimize errors and biases in the study, the steps taken in the data collection proc-
ess have been well documented, so the study can be replicable by others. We have attempted to main-
tain the chain of evidence by providing extensive citation of relevant documents, interviews and ob-
servations.
It can be argued that the empirical evidence, which we have gathered during the project period, could
have been introduced and interpreted differently. Moreover, it is acknowledged, that as the present
researchers have Danish and Mexican backgrounds, the analysis of the management aspects and per-
spectives may be subjective to specific cultural understandings. However, we believe that the selec-
tion and handling of information and data has been carried out based on strict procedures and scru-
tiny to avoid biases. Following, another point of consideration is that the consultants, managers and
researchers, who we interviewed and discussed our approach with, could have influenced our stand-
point. While this is a natural phenomenon, we have been aware of this risk and have avoided becom-
ing biased to a particular perspective. Another major point to put into light is the fact that we were
both working part time for Saxo Bank while writing the paper. While conducting interviews and
critically analyzing Saxo Bank, we have been under the influence of the company to some extent.
However, we have from the very beginning of the project been aware of this issue and have taken the
necessary precautions such as minimizing stakeholder interests by for instance not being financially
supported by Saxo Bank. Furthermore we have stressed this issue when engaging with stake-holders
from Saxo Bank by clarifying our role as external researchers with no professional commitment to

the bank. Even though we acknowledge this risk, we believe that the analysis of the case has been
carried out with great caution to provide an unbiased perspective.
2.6 Limitations of the Thesis
To assure focus throughout the paper we have built a frame that delimitates certain areas, which are
seemingly related to the topic but will not be taken into closer consideration. It is important to clarify
what the paper is about, but even more so it is important to clarify what the paper is not about. This
informs the reader about the decisions made throughout the process, and thereby provides an under-
standing of the chosen direction. Since the area of research is very novel, we could have chosen to
investigate it from various other angles. Thus, it is crucial to clarify where we have drawn the limita-
tions for this project. The selected limitations have been chosen in compliance with their perceived
influence on the conclusions drawn in the project.
A key limitation is concerning the choice of theory. Firstly, the focus on the paper sets out with an
understanding of the importance of consumer needs and behavior of the individual, not of the organi-
zation. Consequently we have chosen not to consider aspects of Business (B) to Business (B) but
rather focus on B to Consumer (C). Consumer behavior, needs and decision making becomes more
complex as organizations are under legal and political influences that often conflict with rational and
emotional behavior. Companies might have engaged in contracts that restrict them to buy from a cer-
tain supplier or deliver its offerings through certain channels. However, we acknowledge that brands
play an increasingly important role within this area too as the end consumer gets interested in the
brands within the brand. In order to encompass such consideration, our brand management process is
constructed in a way, broad enough to capture the aspects of the B to B business16, though this will
not be further discussed.
As the objective of the paper became to explore the process of managing brands in the financial in-
dustry and its application in a single case study, this meant that we had to limit our approach to re-
main purely “strategic”. This implied that we did not go into detailed discussions of the operationali-
zation of the process. Nor have we carried out any context- customer-, competitor- in depth analysis
that would be required before an appropriate practical operationalization could be assessed. Instead,
we present the study of a brand management process as the unit of analysis consisting of five stages
which served as the secondary unit of analysis. Each stage contained some tools that enables the
16 The Brand Framework consists of an inner and outer frame, in order to capture such aspects.
manager to utilize them in the way that seem appropriate to the particular case he is facing. The
stages are derived from theory and compared to practical examples. Our findings have been synthe-
sized into a set of applicable actions. Our focus has been on aspects related to the management of
brands considering the major perspectives within the discipline. Nevertheless due to limited time and
scope, we have not taken into consideration other influencing factors such as stakeholder based
brand equity, the role of internal subcultures, corporate nepotism, managers’ own interests, scarce
resources, etc. Furthermore we have not attempted to test the model through statistical examination
or other quantifiable approaches. We instead rely on some of the major perspectives within the field
and first hand interviews with consultants and practitioners. Finally, the focus of this thesis is at the
organizational firm level. We do acknowledge that it could also be relevant for our findings to inves-
tigate the external aspects influencing the management of brands, for example the role of other stake-
holders in building the brand. In contrast, we have chosen to focus on firm specific internal proc-
esses. We will now look into the constraints in terms of resources that have influenced the writing
process, how they did it and what consequences these had. Such factors are important since they in-
fluence the choice of research and are often neglected where projects pretend to appear in the world
of infinite resources (Andersen, 2001). The resources in this context can be defined as time, money
and access to data. When looking at the timeframe for this project, it is as such not considered a con-
strain even though new rules regarding this matter recently have been implemented, limiting the the-
sis writing process to 6 months. In some cases financial resources can impose some constraints to a
project. This usually affects the design of the research. However, we have managed to generate a
substantial amount of data, through effective networking and a small budget, which allowed for a
field-trip to San Francisco and participation at the American Marketing Association Brand Innova-
tion Forum. We believe that we have not compromised on this matter since we have not discarded
any kind of research for purely financial reasons. In this relation it should be underlined that we have
not received any financial support, simply for the reason that we decided to work independently to
minimize external stake-holders influence on the project. Since we were both working in Saxo Bank,
the access to internal data happened without any real hindrance. Interviews, background information,
strategy and key figures were easy accessible as well as daily mails from top management served as
the last brick in the puzzle of data gathering. As such it is fair to say that we were not limited in our
work but rather accumulated an extensive and relevant amount of data, which we had only hoped to
gather before the beginning of the research.

3. Evolution and Trends of the Financial Service Industry and Brand
Management
Within this chapter the main trends from the financial service industry and from brand management
are investigated and outlined. The trends stems from the initial exploratory research that relies on
primary as well as secondary data. Firstly, we will look into how the financial market and online
brokers emerged and what the online brokerage industry looks like today. As such the financial serv-
ice industry as a whole has not been examined, but rather how it has contributed to and affected the
online brokerage industry.
3.1 History of brokers and the stock exchange
The first brokers appeared in the 12th century in France. The “courratiers de change” were con-
cerned with managing and regulating the debts of agricultural communities on behalf of the banks.
Later in 13th century commodity traders in Bruges gathered inside the house of a man called Van der
Burse, and in 1309 they institutionalized these until then informal meetings and became the "Bruges
Bourse" which is how the “bourse” as we know it today originated.
In the middle of the 13th century Venetian bankers began to trade in government securities and by
1351 the Venetian government outlawed the spreading of rumors intended to lower the price of gov-
ernment funds. This was the first known deregulation made from the government in order to keep the
financial market freely floating17 .
Soon London rose as the financial centre as John Castiangs began in 1698 to issue a list of stock and
commodity prices called “The course of exchange and other things” from his office at Jonathans
Coffee House in London. A growing community of traders established by march 3rd 1801 on the
foundation of Jonathans Coffee House, London Stock Exchange (LSE), with legal regulations and
formal membership subscription.18
17 http://www.historyworld.net
18 www.londonstockexchange.com

3.1.1 The emergence of online brokers
The New York Stock Exchange (NYSE) was established about the same time as the LSE. The NYSE
members charged for their services on the basis of a commission rate set by the Securities and Ex-
change Commission (SEC). The NYSE had the authority based on SEC´s permission to set the
minimum commission rate. This fixed commission rate limited the competition among brokers and
consequently led to high rates and an oversupply of services19. At some large volume trades, the bro-
ker’s share of the commission could be as high as 90 %. This non-fierce price competition led to
over-pricing where commission alone often paid for the entire package of products such as order
handling, advisory service and research 20.
By 1968, occurred something that should prove to be the turning point for this artificially regulated
market. The NYSE appealed to SEC for a routine increase in the commission rate. However an un-
expected intervention from the U.S Justice department questioned the need for price increase and
even more the need for the fixed commission structure. By May 1st, 1975 SEC eliminated the fixed
commission structure. Today that day is widely known as “May Day”.
The effects of the intervention were dramatic, as brokers started to compete on prices cutting com-
mission down to half within short time. However, these breaks did not affect the individual investors
until the discount brokers like Charles Schwab and TD Waterhouse emerged.
The traditional brokers sought to lure customers, with a wide service offerings opposed to the dis-
count brokers who focused on inexpensive and simple trading. Accompanied with aggressive mar-
keting did the discount brokers manage to create a niche. In the 1980s the first online brokers were
introduced through networks like General Electrics Network for Information Exchange. The Internet
trading however did not take off until the 1990s, but when it finally did it radically changed the in-
dustry. This was mainly due to two technological advantages the Internet offered;
First, online brokers could provide less expensive trade execution than their offline counterparts.
Placing orders online allowed investors to circumvent personal brokers and thereby reducing transac-
tion costs. Secondly, the Internet contributed to the emergence of online trading by becoming a me-
dium of information. Large groups of consumers became increasingly sophisticated and more able to
direct their own financial affairs without the help of a broker through the transparency the Internet
facilitated. Thereby the Internet eroded the personal brokers main advantage: access to superior
information.21
19 www.stern.nyu.edu
3.1.2 How does the industry look today?
Since the beginning of online trading the commission rate has dropped from around $50 a trade
down to around 1/5 of that and even some companies like Bank of America, Zecco and SaxoBank
offers commission free trading. These price slashes has generated great growth in the industry ac-
cording to Mc Kinsey & Co22 who states that in 1999 online banking constituted 2 % of the entire
industry, by 2002 it constituted 10 %. The explosive growth in the online trading industry has at-
tracted many new entrants, leading to intense competition. In addition to that, many of the traditional
full-service brokers like Merrill Lynch and Morgan Stanley have also entered the arena by offering
online trading. The Internet poses the most serious threat to the established brokerage firms since the
unfixing of commissions on May Day, 1975, when deregulation created the discount-brokerage busi-
ness, threatening, but not vanquishing, a cozy oligopoly (Nathan, 1999). Now, the oligopoly is being
battered by new technologies. So far, traditional full-service brokers have resisted using the Internet
in any way that would cannibalize their existing offline brokerage business. They have appeared
positively complacent, arguing that the cut-price online brokerage is not a sustainable business mod-
el23 .
The traditional full-service firms are finally beginning to counterattack. Their first steps has been to
add online trading to their information-only web sites with a better deal for their more active custom-
ers. As they enter the online market at a larger scale, with vastly greater capital bases, and powerful
global brand names these traditional firms will probably change the nature of the competition.
The entry of traditional offline firms to the online market, however, will not necessarily be a very
smooth process. This could cause major “channel conflict” when distributing through competing
channels that offer different prices and service levels. An example of this kind of conflict has been
felt during the launching of Discover Brokerage Direct, owned by Morgan Stanley (Smith, 1999).
One of the clearest indications of how channel conflict influenced management decisions was in the
way the online unit was named. Rather than extending the Morgan Stanley brand name to the online
operation, a name that carried considerable clout in the securities business, the new company was
given the name of the Discover credit-card operation. This was a way of distancing the parent com-
pany from the online business24.
22
Counterintuitive Marketing Strategies for Branding Financial Services Online
By Kevin J Clancy, 2001 “European Financial Marketing and management newsletter”
23 Unsal and Movassaghi, 2001
24 Unsal and Movassaghi, 2001

As new entries to the online market appear in various ways there is reason to believe that this growth
trend may not continue and the industry at some point in the near future will enter the maturity
phase25.
3.2 Evolution and Trends of Brand Management
Brand management is continuously evolving as the economy changes and requires new approaches
and other ways of thinking. Consequently this section serves to highlight the recent and main trends
within brand management, founded in the preliminary exploratory research. In order to gain a solid
overview of the field, we will set out with a brief introduction of the phenomenon of brands and how
brand management has evolved.
Branding started in Sweden in the middle age (476-1492) when the ruling economy was the agrarian
and commodities were extracted from the natural world: animal, mineral, vegetables, etc. A brand
was the action of burning a symbol into the flesh of a Norse in order to signify ownership of the
animal26 .
The oldest brands, which exist today were introduced into the market in the 18th century and are
from the alcoholic drinks sector. This is due to the fact that these products are non-perishable (be-
cause they are alcohol based) and thus needed a distinguishing name/symbol so that they could be
marketed over a wider area and during a longer time period. Some examples of the oldest brands in-
clude “Twining 1706”, “Schweppes 1798” and “Ballantine’s 1809”27 .
The construction of railways and sea-routes that appeared about a century later, were important im-
pulses for the development of these non-perishable brands as they could now be distributed over a
much wider area. The consumer was thereby given a choice between different alternatives: locally
manufactured products vs. products imported via railways and waterways. At the same time there
was an increasing demand for pre-packaged articles, which guaranteed a certain constant price and
quality. This increasing supply of goods and consumer demand, made it increasingly necessary to
give manufactured goods a brand name, so that one manufacturer’s products could be distinguished
25 Industry-Life-Cycle Curve
26 Larry Light meeting Connecticut 2006 [Origin: bef. 950; ME, OE: burning, a burning piece of wood, torch, sword; c.
D brand, G Brand, ON brandr; akin to burn1]
27 Rik Riezebos, Brand Management a Theoretical and Practical Approach (2003) pg., 3

from those of other manufacturers (Murphy 1990).
It is evident that “Branding” in commercial context surged as a need to distinguish a product and
make it identifiable to a consumer through the use of a name or symbol. Following a trademark was
created as a legal mechanism to protect the right of a company to claim ownership of the product
name or symbol. Finally as more brands appeared it was no longer enough to posses a brand, but it
became increasingly necessary to actively manage and advertise the brands.
It is said that in 1931, Neil McElroy changed marketing forever when he wrote the classic memo at
Procter and Gamble (P&G), which lead to the creation of the discipline of brand management
(Aaker, Joachimsthaler, 2000; Larry Light, 2004; et al). In this memo McElroy said that in addition
to having a person in charge of the advertising of each brand, there should be a substantial team of
people devoted to thinking about every aspect of marketing it. This dedicated group should attend to
only one brand. The new unit should include a brand assistant, several "check-up people," and others
with very specific tasks 28. The concern of these managers would be the brand, which would be mar-
keted as if it was a separate business. In this way it would be possible to solve “sales problems” by
analyzing sales and profits for each market area in order to identify problem markets29. Moreover,
through brand management, the features and benefits of every brand would be distinguished from
those of every other30.
This evolution came from McElroy’s identified need of focusing and coordinating the marketing ef-
forts for Camay soap. McElroy’s idea was that a brand management team would be responsible for
creating a brand’s marketing program and coordinating it with sales and manufacturing. The process
of managing a brand meant dealing with a complex system - often involving R&D, manufacturing,
and logistics in addition to advertising, promotion, and distribution-channel issues. A brand man-
agement team had to include planners, doers, and motivators; while successful brand managers
needed to have exceptional coordination and motivational skills. According to Aaker, the classic
brand management system was usually limited to a relevant market within a single country and the
brand manager tended to be tactical and reactive, observing competitors and channel activity as well
as sales and margin trends. Under this model, strategy was often delegated to an agency or simply
28 David A. Aaker & Erich Joachimsthaler, Brand Leadership, Free Press Business, 2000, pg.,3
29 David A. Aaker & Erich Joachimsthaler, Brand Leadership, Free Press Business, 2000, pg., 3
30 Larry Light, Brand Design, Corporate Manuscript, Arcature June 28, 2006
ignored31. From McElroy’s description, we can see that brand management began as a process re-
sponding to the need. This need was identified by middle management and for a multifunctional
team to manage.
In the academic world brand management has attracted the interest of numerous scholars from a
wide variety of disciplines as psychology, sociology, anthropology, economics and strategy. In this
way, two decades after McElroy’s important contribution to brand management, during the 1950s,
Rose Reeves developed the idea of the Unique Selling Proposition (USP) and described it in a
widely selling book “Reality in Advertising” published in 1960. Also at around that time, David
Ogilvy, introduced the concepts that we know today as brand image and personality in 1955: Prod-
ucts, like people, have personalities, and they can make or break them in the marketplace...
Every advertisement should be thought of as a contribution to the complex symbol, which is the
brand image. Thus, even-though McElroy had already introduced a management based branding
process; during the 1960s, the predominant and most widely used strategy was based on advertising
the product advantages through “unique selling propositions” (USPs)32. As more products and brands
focused on advertising their USPs, it became increasingly difficult to distinguish the unique charac-
teristics of the offering.
Today the competitive landscape has become much more complex as companies compete around the
globe and across industries. Meanwhile brands have been acknowledged as an essential part of every
business model, and lead to an infinite number of strong brands along with the development of new
patterns and trends in brand management. The exploratory research set out to draw a broader picture
of brand management in the financial service industry, as well as identifying significant trends that
called for further attention. In the following we shall look at these recent trends.
3.2.1 Trends in Brand Management
Experiences
Today we live in what some call the experience economy, where companies need to compete on the
basis of memorable experiences. Goods and services are no longer enough (Pine & Gilmore, 1999).
Organizations have been forced to adapt to the developments in the environment and to the conse-
31 David A. Aaker & Erich Joachimsthaler, Brand Leadership, Free Press Business, 2000, pg., 3
32 Rik Riezebos, Brand Management a Theoretical and Practical Approach (2003) pg., 4
quent changes in consumer demands brought by the experience economy. Even big multinational
companies, which have been regarded as the paragons of brand building, have stumbled in the be-
ginning of the 21st century. Some have been able to adapt successfully, including Procter and Gamble,
Apple, IBM and McDonalds (Doyle 2001, pg 20; Larry Light 2007). Other brands have not been
able to adapt and thus have lost value significantly or become obsolete, such as Kodak, Encyclopedia
Britannica and AT&T.
In order not to turn obsolete, companies need to evaluate the impact of the experience economy with
regards to their offerings, consumers and the entire management of their brands. Consumers in this
new economy take functional features and benefits, product quality, and a positive brand image as a
given (Schmitt, 1999). The degree to which a company is able to deliver a desirable customer experi-
ence in products will largely determine its success (Schmitt, 1999).
Forrester Research, the leading research agency within the financial service industry supports this
view and recommends in a recent survey33 that for the bank brands to succeed, they need to focus on
their online brand experience. Jyske Bank has taken this approach further by not only creating an on-
line brand experience, but extended it to additionally include an offline brand experience, where all
the branches have been reshaped and aligned with the concept34. Their concept named “Jyske For-
skelle”35 aims at creating an experience for the customer from the moment he/she steps into a branch.
This is for instance done by shaping the office branches into cozy café’s and by making the products
tangible and lined up in packages around the café36.
However we question the endurance of this concept by turning to the importance of the underlying
processes. As we believe the processes are key to the success, we argue that it is not enough simply
to give the business model a make over, but it is essential to change the underlying processes. If not
the concept will only have a short-term effect since the internal processes are the true drivers of the
brand.
Touch-points
Along with the emergence of the experience economy, a great emphasis has in recent years been
placed on actively managing and coordinating all the touch-points a company faces its customers
with. This is in order to create a consistent brand image and brand experience whether visiting the
web site, physically entering a branch or receiving an invoice (Shaw & Ivens, 2002). This has be-
come increasingly important for pure-online players such as Saxo Bank that needs to make an impact
on their target group through fewer and solely online points of contacts.

A brand represents a dynamic interface between an organization’s touch-points and customer inter-
pretations (Chernatony, 2006). This underlines the importance of actively managing the touch-points
and thoroughly incorporating them into the offered experience. This statement is further supported
by Aaker (2007), when asked about the most important aspects of managing brands in the financial
service industry37.
We believe that great customer experiences are designed “outside in” rather than “inside out” with
the customers need as the point of departure. Consequently the touch-points need to follow this logic
to support each experience and suit the customer needs. It is in this relation important not to think of
the touch-points as channels for distribution of a product, service, message or experience, but instead
to incorporate them into the design process of the experience.
A survey has shown (Cleaver cf. Chernatony & Harris, 2000) that successful brands furthermore use
touch-points actively to communicate their values with consumers. A trend that has accelerated sig-
nificantly over the past years and become an important element in the stakeholders decision-making
process when choosing between brands. However there is still a long way to go, when it comes to
coordinating the brand values with the company’s touch-points. Another survey by Shaw & Ivens
(2002) has shown that; “70 % of companies did not have a strategy for ensuring that brand values
were being met at all customer touch-points”.
Brand values
As a consequence of the globalization, many product- and service categories have been commodi-
tized due to the diminishing difference between companies and their offerings. A parameter like for
instance “quality” is within many industries no longer a mean for differentiation (David A. Aaker,
2007) as the quality standard has leveled out along with the maturity of the product categories. As
most brands claim to have best quality and additionally are perceived by consumers to have reached
a certain equal level, consumers and companies are looking for other means of differentiation.
In this relation brands have sought to identify with values that relate to their target market and are
common to the corresponding communities. These are communicated through the company’s touch-
points and represented in different ways in different national/cultural contexts38 and represent values
such as safety, style, status and service. In order to craft a strong connection between the brand and
customers, values poses a great advantage of creating this through an emotional attachment.

Within the service paradigm, the perceived brand values are dependent on the behavior of the em-
ployees, attracting or repelling stake-holders. (Ind, 2001). As values drive behavior it is essential that
the desired brand values are successfully communicated and internalized by employees to ensure ap-
propriate brand supporting behavior. (Gotsi & Wilson, 2001) In this relation do the HR function play
an important role, as particular HR activities help transmit brand values to employees and encourage
their “buy in” (Chernatony & Cottam 2006). This view is central to Virgin where the HR depart-
ment plays a central role in ensuring value-alignment. The company is foremost hiring the people
that share the values of the brand (Shaw & Ivens, 2002).
Innovation
As early as in 1967 Drucker formulated the famous notion: “There are only two value-adding activi-
ties in an organisation: “Innovation” and “marketing”. However evidence show that not much inno-
vation are going on in the financial service industry, where banks and other financial institutions are
absent form Business Week´s annual ranking of the Top 25 most innovative companies.39 This state-
ment is widely supported by both practitioners as well as theorists. Andy Maguire, global head of
asset management at BCG, notes that: “Not a lot of innovation has gone on in the banking industry
over the past 1000 years”. Eric Von Hippel further elaborates on this saying: “automating systems,
processing loans more efficiently, designing new financial instruments and new trading programs are
not innovation”.
It is believed that the reason lies in the business model of the financial institutions that can deliver
consistent profit: Pay out less interest to depositors than is paid to them when they on-loan the
money. This must be seen in the light that the industry has until recently been protected by complex-
ity of product and prices40, an advantage that has disappeared along with the emergence of the Inter-
net.
As a consequence of the increased competition sparked by the globalization, even the financial insti-
tutions have been forced to think in untraditional ways. This has amongst other things led to the in-
creased focus on active brand management but also on innovation. Deutche Bank and Citi Group
have been among the peers and have long ago hired an CIO (Chief Innovation Officer). They have
reached a few similar conclusions.
1: Proactive rather than reactive impulses are needed. & 2: Innovation should be customer driven41.
The first conclusion is identified by Aaker (1996) as the solution to the wide spread problem of pas-
sive brands. “There are countless examples of strong brands that neither saw nor responded to oppor-

tunities, then watched competitors innovate and attack the core of their equity” (David A. Aaker
1996, pg 32).
The second conclusion that points at innovation must take its point of departure in the customers
need is essential, as most financial service companies take the reverse approach, where innovation is
a product of what technology allows42.
Research Techniques focused on Consumers as a Consequence of the trends

As a consequence of the emerging focus on innovation, values, touch-point management and experi-
ences, new research techniques have attracted new attention aiming at uncovering today’s complex
consumer behavior.
An example of a research technique that has gained much attention is Ethnographic Research. Eth-
nographic research enables companies to create the right experiences, with the brand values incorpo-
rated into the touch-points, that suits and supports the consumers behavior (Tom Kelley, 2005). It is
now recognized that customers have different roles in their lives and consequently different needs at
different times (David A. Aaker, 2007). The notion that one segment has a certain need does no
longer apply as this view has proven to be too simplistic (Light, 2007). Instead a more dynamic ap-
proach to solve the challenge of uncovering customer needs is called for. For this purpose ethno-
graphic studies are gaining ground as a mean to better understand the different roles and needs of the
customers. Ethnographic research responds to this challenge by observing consumers in their natural
environments and then turning these consumer encounters into ideas that transform product catego-
ries and brands (Mariampolsky, 2006)43.
Ethnography has surfaced to the top of the market research agenda in recent years as it allows those
who create and sell products to come across consumers in new ways. Furthermore it allows market-
ers to delve into the actual occasions and situations in which products are used, services are received,
and benefits are conferred (Mariampolsky, 2006). In this way the various roles and needs of the con-
sumers is better and more correctly uncovered, which is essential to success in an increasingly com-
petitive market landscape.
PepsiCo Inc. is already adapting their organizational structure and research methods to promote con-
sumer understanding and knowledge sharing internally and externally. Ultimately, this type of ap-
proach can help an organization to inform their brands and innovation projects. In a recent American

Marketing Association (AMA) conference on brand innovation (May 2007), Antonio J. Lucio, Senior
Vice President (SVP), Chief Innovation and Health & Wellness Officer said: “We believe that he who
is closest to the consumers…should own the keys to innovation.. Working together with our innova-
tion teams is a set of best-in-class partners; people like IDEO an eatbigfish…They provide us with
fresh approaches to insights, prototyping, and development.”
3.3 Chapter Three Conclusion
The exploratory research has identified and unveiled a number of key trends that are essential in
building a strong brand in the financial service industry of today. Especially the importance of creat-
ing welcomed experiences that the customers value has throughout our research proved to be a focal
point. Consequently we have designed following research question in order to examine this phe-
nomenon further:
Research Questions 1:
“How should companies in the Financial Service Industry create brand experiences with the goal of
maximizing shareholder value?”
When we have examined the first research question and seeked an answer on how to create brand
experiences we will probe our second research question. Based in our motivation of the thesis we
seek to propose a brand management process. Utilizing the findings from research question 1 we will
suggest a process and subsequently apply it to the case of Saxo Bank. Research Question 2 aims at
identifying the elements of the various stages of the process as well as explaining their interrelation-
ship.
Research Question 2:
“What do the stages of the brand management process consist of and how can the process be applied
to a case?”
While examining and answering the research questions a set of propositions has been put forward.
The propositions and their relation to the research questions will in the following chapter be elabo-
rated upon. Finally, in the end of the thesis, these will be evaluated when tested through the applica-
tion in the case.

4. Brands as Resource Management ! Theoretical Framework
This chapter will focus on aspects of the management of brands, more particularly the management
and creation of brand experiences aiming at maximizing shareholder value. We will begin by pre-
senting our theoretical standpoint and main principles both within marketing management and theory
of the firm represented by the resource base view. Following a brief literature review on the major
perspectives within brand management will be presented. The next section is dedicated to our two
research questions and its propositions. Finally we will present a theoretical framework which will
be applied to a case by using practical tools to narrow the scope of the discussion.
4.1 Theoretical Foundation
Brand Management has been historically couched within the Marketing field. Nevertheless, market-
ing seems to defy simple definition and circumspection and the field is being consistently broadened,
it is therefore essential for successful outcome that marketers locate the distinctive focus of the disci-
pline (Bagozzi, 1975). In this paper the focus is represented by Bagozzi’s (1975) definition: market-
ing is the discipline of exchange behavior that deals with problems related to this behavior; this can
be within or across social systems. Furthermore, we recognize that exchange is more than the mere
exchange of a product, service or experience for money. But, the reasons of its occurrence lie in the
social and psychological significance of the experiences, feelings, and meanings of the parties in the
exchange.
We will place this paper among the new dominant logic for marketing that has emerged shifting the
focus from tangible to intangible resources, from frozen value to co-created value and from transac-
tions to relationships (Vargo and Lusch 2004)33. However, the present paper will only consider the
marketing aspects related to the brand management process. From research (Chernatony & Riley,
1998) it was concluded that every brand exists by virtue of a continuous process whereby senior
managers specify core values that are enacted by the organization’s staff and interpreted and rede-
33 c.f. Leslie de Chernatony, From Brand Vision to Brand Evaluation 2001, 2006. pg., 5
fined by customers. Within the field of brand management we will also consider its relationship to
the fields of innovation management and design management.
We will place our theoretical foundation for the conceptual model mostly in the functionalist and
normative mainstream marketing school (Drucker 1946, 54’, Levitt 1960’, Kotler, 1967, Aaker 91,
Doyle 95 et. al.). This is in order to utilize tools and action models that can be easily understood by
managers across departments and at any level, facilitating engagement in their application. However
when it comes to corporate culture, internal knowledge sharing, marketing research and consumer
insights we recognize that a social constructionist perspective can contribute to the conceptualization
of our model as it entails a greater degree of integration between marketing and interpretive, critical
and ethnographic approaches to the study of exchange behavior34.
In line with this, we recognize that traditional linear models of communication are far from repre-
senting the full picture of the exchange. Furthermore, linearity is inappropriate for the free flow of
knowledge within the organization and its connections to customers, and linearity models do not fit
to the speed and flexibility required to deliver value to the seeming irrationality of customer needs
(Ind & Bjerke 2007, pg.,8). A social constructionist perspective on emotion (Averill, 1980; Harre,
1986) guided by an interpretive research framework (Holbrook, 1990) offers at least the possibility
of genuine consumer insights which can be translated by marketing agencies into practical normative
principles informing the development of marketing strategy.
The brand management process model in the present paper will utilize normative functional frame-
works for our analysis while integrating a social constructive view as an ontological study to allow
for a more open dialogue when evaluating the social interaction between employees, with consumers
and other stake-holders.
The resource base view

The present paper will be based on the main principles of the theory of the firm presented by the re-
source base view. The resource base view emerged based on Selznick’s (1957) seminal work on “dis-
tinctive competencies” and on Penrose’s (1959) argument that a firm is a collection of resources and
its performance depends on its ability to use them. This initial proposals of the resource base view
and its later reformulation throughout the 80’s and 90’s moved away from the then dominating stra-
34 Chris Hackley, Marketing and Social Construction (2001) Routledge London pg., 190
tegic management view based on neoclassical economics, and the structure-conduct-performance
paradigm of industrial organization economics (IO) (Caves and Porter, 1977; Caves, 1980; Porter,
1980)35.
The resource base view does not propose that just any resource can be a source of competitive ad-
vantage. Rather it must possess a number of characteristics. Barney’s (1991) contribution to the re-
source base view was key to clarify what enables a resource to be a source of competitive advantage,
and to emphasize the importance of the intangible, hard-to-define resources that can be found in an
organization. In Barney’s view resources must be valuable, rare, imperfectly mobile, imperfectly imi-
table and based on Organizational processes so that there are no strategically equivalent substitutes,
VRIO framework (1991, 1995).
Resources must be valuable: A resource is valuable if “it exploits opportunities and/or neutralizes
threats in a firm’s environment” or if it “enables a firm to conceive of or implement strategies that
improve its efficiency and effectiveness” (Barney, 1991, pp. 105, 106). Resources must be rare: In
other words these must not be possessed by a large number of firms. Resources that are valuable but
not rare can only be sources of competitive parity (Barney, 1995)
Resources must be imperfectly mobile: That means that resources cannot be easily acquired by means
of exchange. If resources can be traded then it cannot be an enduring source of difference and there-
fore cannot be a source of sustainable competitive advantage.
Resources must be imperfectly imitable: Meaning that other firms cannot readily copy them and ob-
tain equivalent resources. If competitors can copy resources, these do not provide a point of differ-
ence and hence a point of competitive advantage.
Finally, Resources cannot have any strategically equivalent substitutes: Which means that if a substi-
tute resource can deliver the same effect as the possessed resource this cannot remain a source of
competitive advantage. In short Barney’s view is that if a resource is to be considered a source of
sustainable competitive advantage, this must be simultaneously unique, difficult to trade and difficult
to duplicate and substitute.
The resource base view in contrast to the (IO) takes an efficiency approach to firms’ performance
rather than a privileged market position approach. Furthermore its propositions are based on internal
resources and factors characterizing the firm as sources of competitive advantage, rather than exter-
35 Veronique Ambrosini, Tacit and Ambigous Resources as Sources of Competitive Advantage, 2003, pg., 3

nal factors. While the focus of the present paper is not to discuss whether an internal perspective is
more valid than en external, we aim at incorporating aspects of both for the effective management of
brands.
Brand Management Evolution and Major Perspectives

From its origin and through its evolution, brands and the study of brand management have had dif-
ferent dominant focuses of study. Beginning with the pure focus on brand image and advertising
(Hopkins, 1910; Barton, 1923; Ogilvy, 1955; et al.). Where the main purpose was to communicate
the characteristics of an offering to create an image and the concept of personality. Following the fo-
cus changed towards the study of marketing and brand management with an external orientation to
building brand equity and brand identities (Kotler and Armstrong 1987; Keller, 1987; Aaker, 1991;
Kapferer, 1992; etc). They were mainly concerned with attaching an image and associations onto the
product or service to build brand equity which as conceptualized by Aaker, meant strategically man-
aging its 5 major asset categories: Brand awareness, Brand Loyalty, Perceived Quality, Brand Asso-
ciations and other proprietary brand assets. A third dominant group is represented by the so called
“inside-out” approach, and has been concerned with the importance of employees in communicating
and delivering both product and service brands and in creating value for customers (Levitt, 1980;
Reichheld, 1996; Doyle, 2001; de Chernatony 2001, Ind 2001, Ind & Bjerke 2007, etc). A balanced
perspective linking internal and external perspectives was also presented first by Abratt (1989) et. al.
Finally a more recently emerging perspective is represented by the need for creating and managing
brand experiences by assembling a configuration of services and goods as props to create relevant
and differentiated experiences; and a related subgroup concerned with managing design and innova-
tion to deliver relevant and differentiated consumer value.
The dominant focus of these studies has been on how to create, stage and manage experiences and it
generally considers both the organizational aspects involved in creating an experience and in deliver-
ing it. This group has been represented first by Pine and Gilmore, (1999) and Schimitt (1999) fol-
lowed by other propositions more specifically focused on creating, managing and “staging” a brand
experience (Shaw and Ivens, 2002; Smith and Wheeler 2002) and others focused on the importance
of the link between Marketing/brand management and knowledge management, innovation, design
and the like (Nonaka and Johansson, 1997; Peters, 2003; Kotler and Trias de Bes, 2003; Riezebos et.
al., 2003; Chaston, 2004; Trott 98-2005; Grant, 2006; Kim and Mauborgne 2005 etc).

4.2 Research Questions and Propositions
In the present study we will incorporate aspects from the above perspectives to answer to our Re-
search question 1: “How can companies in the Financial Service Industry create brand experi-
ences with the goal of maximizing shareholder value?”
Through our first research question and its three accompanying propositions we will form our theo-
retical framework. We will base our theoretical framework on the resource base view of the firm.
This is because our main unit of analysis is the internal process which can lead to the creation of
brand experiences aiming at maximizing shareholder value and in order to keep a red threat through
our theoretical discussion.
The company’s ability to create brand experiences which can maximize shareholder value relies not
only on creating powerful associations nor on an effective and fluid connectivity with customers and
the internal alignment and engagement of employees, teams, units and managers and other key stake-
holders in the brand value adding process. But, it is necessary to integrate into the process from its
initial stage the entrepreneurial and creative resources and capabilities which can lead to carrying out
new combinations (Schumpeter, 1934). The resource-based theory proposes that defining a firm in
terms of its assets and core capabilities offers a more durable basis for strategy than a definition
based solely upon the customer needs the business seeks to satisfy. Following, in order to be able to
integrate the various brand management views based on the resource base view of the firm, we will
study the brand management process through our first proposition.
Proposition 1: Brand Experiences can be created by Financial Service companies based on re-
sources, processes, identities and meanings
This argument is made, as we recognize that the chosen approach can lead to confusion as it tries to
integrate many different perspectives on the management of brands. Hence, we will base our study
on a linear framework which integrates processes based on resources which are then finally external-
ized through identities as meanings. We will base our framework mainly on Doyle’s (2001), “intan-
gible assets and the resource-based theory of the firm” model. Nevertheless, we will incorporate
Itami’s (1987) proposition of invisible assets.
This is because this concept integrates the importance of information flows and its channels as key
resources that represent sources of competitive advantage. These include insights generated and ac-

quired from customers and the environment, internal information flows and the delivery of meanings
externally to customers and other stake-holders.
Proposition 2: A Financial Service Company can create brand experiences based on a bundle of
tangible and intangible resources encompassed by an identity
This proposition is made to locate our study focus on the entrepreneurial and creative functions
found in the processes represented by marketing, innovation (Unique Value Development) and de-
sign and its relation to other aspects in the identity of a brand. These elements are key to the creation
of a relevant and differentiated identity and of its effective delivery through its evidence (product,
service or experience).
Following, Proposition 3 turns into the resources encompassed by the identity, which forms the expe-
rience. This proposition is made, since we believe that innovation can be attained by combining the
different levels of an identity. A brand identity represents a bundle of resources; new consumer val-
ued experiences can be staged through new combinations delivered to consumers through offerings
in the financial service industry.
Proposition 3: Brand innovation is based on a bundle of both tangible and intangible assets de-
livered to consumers as an experience (features, functions, emotional rewards, values and per-
sonality)
Following our theoretical foundation guided by research question 1 and its propositions, we will in-
vestigate these concepts in a more practical level. This will be done through Research question 2:
What do the stages of the brand management process consist of and how can the process be
applied to a case?
In order to create a clear study framework for the case we have decided to incorporate two more
propositions. The first one aims at investigating the major areas within the brand management proc-
ess in the financial services. By studying five key stages defined through literature review we have
narrowed down the scope of the discussion to avoid an unfocused outcome. Each of the encountered
stages is discussed and applied to the case. The objective is to investigate its applicability and its use-
fulness in pointing at the areas in the process, which can be improved by the company or are not in
place.

Proposition 4: A financial services company can manage a brand through a 5 key stage process:
Analysis, Vision, Experience Design, Operationalization and Evaluation.
Our final proposition is based on the initial theoretical discussion but aims at discussing the implica-
tions in a more practical level “Proposition 1: Brand Experiences can be created by Financial Service
companies based on resources, processes, identities and meanings.” By utilizing more concrete study
areas we can investigate the underlying assumptions of proposition 1 in our case study.
Proposition 5: Environmental Understanding, Corporate Vision, and the brand identity guided
through the brand essence can set a framework for the design of experiences.
4.3 Brand Management from Resources to Meanings
Proposition 1: Brand Experiences can be created by Financial Service companies based on re-
sources, processes, identities and meanings.
This section sets out to investigate the foundation of brand management, as a starting point for the
theoretical chapter. Following, this section will define the theoretical framework for the brand man-
agement process based on the resource base view and how this can be externalized by identities and
meanings. Since a complete literature review on brand management is not the purpose of this paper
and would be to large to be included as part of this framework, we have decided to include this in the
Appendix chapter.
Peter Ferdinan Drucker, in “The concept of the corporation, 1946” and “The practice of manage-
ment, 1954”, originally provided important contributions to conceptualize a business corporation and
management. In the practice of management (1954), Drucker placed marketing at the centre of the
organization and proposed what became widely known as a marketing philosophy of business. The
following quote has been reproduced in hundreds of marketing texts and articles including Kotler,
1994; Doyle, 1995; Deshpande, 1999; etc. “Marketing is not only much broader than selling, it is not
a specialized activity at all. It is the whole business seen from... the customer’s point of view
(Drucker, 1954, pp. 35-6). In other words the function of marketing according to Drucker is to con-
tinuously understand the customer and to continuously acquire the necessary resources to create of-
ferings that are highly valued by them.

Levitt in his famous title Marketing Myopia (1960) supported this view. For him “marketing should
be tied more closely to the inner orbit of business policy”(Levitt, 1960). In this article Levitt claims
that “Management must think of itself not as producing products but as providing custom-creating
value satisfactions." Levitt claims that firms that define their business myopically in product terms
can stagnate even though the basic customer need they serve is enjoying healthy growth. His key
contribution was based on defining the business in terms of the basic customer need rather than the
product. In this view consumer insights and understanding gain major importance as intangible re-
sources that the firm should constantly aim at generating. Furthermore, we believe that this contribu-
tion was very important, as in this way a company would inherently increase internal creativity and
encourage the continuous creation of new strategic options. Or in Levitt’s words “what survival al-
ways entails, that is, changing.”
Levitt further claimed that “what usually gets emphasized is selling”, while marketing “a more so-
phisticated and complex process, gets ignored.” and would often receive a “step child treatment”.
The view that an industry is a customer-satisfying process, not a goods-producing process, is vital for
all businessmen to understand... the entire corporation must be viewed as a customer-creating and
customer-satisfying organism (Levitt, 1960).
Hence, already by 1960, the need for a marketing process based on satisfying consumer needs rather
than on selling a product, had been identified. This meant that advertising, selling and other business
functions should be secondary functions while the focus should be on providing innovative offerings
valued by consumers and through effective marketing based on genuine consumer insights, custom-
izing these offerings to make them fit or exceed consumer needs and wants. Drucker clearly stated
this point:
“because it is the purpose to create a customer, any business enterprise has two-and only two-basic
functions: marketing and innovation... There will always, one can assume, be need for some selling.
But the aim of marketing is to know and understand the customer so well that the product or service
fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that
should be needed then, is to make the product or service available.” Management: Tasks, Responsi-
bilities, Practices (by Peter Drucker 1973)

Nevertheless, Drucker, and Levitt did not explain how this could be achieved and through what
strategies and processes could a company aim at being profitable by delivering innovative offerings
valued by consumers.
Brand Management and the Resource Base View of the firm
Peter Doyle (2001) presented a model on an article titled “Shareholder-value-based brand strategies”.
In this paper Doyle explains how brands contribute to the firm’s strategy and how brand planning
needs to be geared to market economics and management’s central objective of creating shareholder
value. Doyle (2001) bases his model on the resource base view. He argues that the “resource based
theory of the firm” represents something of a shift from the marketing-based idea of the firm popu-
larized by Theodore Levitt.
Doyle’s argument is that the resource based theory proposes that defining a firm in terms of its assets
and core capabilities offers a more durable basis for strategy than a definition based upon the cus-
tomer needs the business seeks to satisfy. Doyle states that “a firm starts with certain resources - as-
sets, human resources and an organizational culture.” While we will base our framework to a great
extent on Doyle’s (2001) model “intangible assets and the resource-based theory of the firm”, we dif-
fer with Doyle in two points. Firstly as proposed by Drucker (1954), Levitt (1960), Kotler (1967),
Aaker (1991), etc. we believe that the starting point when aiming at creating and delivering brand
experiences should be understanding the consumer needs to then crafting a vision and gathering the
necessary resources. We will elaborate on this point later drawing from the concept of invisible as-
sets proposed by Itami (1987). A second point of difference is that following Drucker (1954) we be-
lieve that a brand is not only a resource underlying the business processes and encountered within the
“Reputational assets” but rather it is the entire business seen (experienced) from the customers point
of view (perception).
Brands as Meanings based on Processes based on Resources to maximize shareholder value

Resources can be defined as “anything which could be thought of as strength or weakness of a given
firm” and as “tangible and intangible assets which are tied semi-permanently to the firm” (Werner-
felt, 1984, p. 172)36. Barney (1991) categorized resources into physical capital resources (e.g. tech-
nology, plant, equipment, machinery, etc), human capital resources (e.g. knowledge, relationships,
36 Veronique Ambrosini, Tacit and Ambigous Resources as Sources of Competitive Advantage, 2003, pg., 4
experience, judgment, etc) and organizational capital resources (formal reporting structure, formal
and informal planning, organizational culture, etc). Similarly, Doyle (2006) bases the starting point
of his “intangible assets and the resource-based theory of the firm37 ” model on six type of resources
within two groups: Tangible Assets (Financial resources, plant equipment, land, etc) and Intangible
assets including Technology (Patents, copyrights, trade secrets, etc), Strategic Assets (licenses, natu-
ral monopolies, other privileges, etc), Reputational Assets (Name of the company and its brands),
Human Resources (skills and adaptability of the firm’s employees) and Organization / Culture (val-
ues and social norms inside the firm).
According to Doyle, the objective of strategy as depicted starting from the top of his model is to cre-
ate shareholder value, as measured by rising share prices or dividends. In competitive markets the
key to creating shareholder value is possessing a differential advantage - giving customers superior
value through offers that are perceived as either superior in quality or lower in cost.
Following the resources level in Doyle’s model, in the second level are the core capabilities. These
are defined by Doyle (2006) as the things a firm can do particularly well relative to competitors.
Nevertheless he does not explain further in the paper its role in the model other than “they derive
from the resources or assets a firm posses”.
In the third level of his model, Doyle groups the core business processes into three: (1) the product
development management process, which aims at creating solutions that customers want, (2) the
supply chain management process, which acquires inputs and efficiently transforms them into cus-
tomer solutions and (3) the customer relationship management process which identifies customers,
understands their needs, builds customer relationships and shapes the perceptions of the organization
and its brands (Srivastava, Sherfvani and Fahey, 1999). The effectiveness with which the firm under-
takes these processes determines its ability to create a competitive advantage.
We differ with Doyle on this stage. Instead of having the supply chain management process and cus-
tomer relationship management process in this stage, we will incorporate later the concept of “invisi-
ble assets”. Invisible assets are informational resources including environmental and customer in-
sights, the flow and combination of these and other knowledge internally and delivering effectively
37 Doyle (2006) Intangible Assets and the Resource-Base Theory of the Firm Figure 7.1 pg. 223
externally to customers as valuable meanings. We will elaborate on this concept in the following sec-
tion.
Instead of the processes as presented by Doyle, we believe that it is relevant to focus on the creative
processes including the core capabilities of the specific company. These could include in addition to
the product development management process, the design process, the marketing process, Informa-
tion Technology capabilities, financial capabilities, other technical capabilities, etc. This stage is
where the offerings and experience are designed and new combinations can happen.
We have defined a brand as a promise of a relevant and differentiated experience. Following, the of-
fering, encompassed by the delivered experience is the evidence of the truth of the promise. Hence, if
the offering does not deliver the promised experience the brand does not increase consumer satisfac-
tion and fails to deliver its promise.
According to Doyle (2006) brands add value for consumers by simplifying the choice process and
increasing satisfaction. Hence, a brand does not add value if the brand image is not accompanied by
an offering which increases consumer satisfaction. Moreover, he argues that by creating customer
value, brands make possible enhanced shareholder value. In short Doyle (2006) claims that through
successful brand management and by gearing brand planning to market economics, managers can
increase the net present value of the company’s cash flow.
Whether this competitive advantage translates into profitable long-term growth is affected by two
other factors (Doyle, 2006). The first is the sustainability of the firm’s competitive advantage. In
some markets even strongly advantaged firms do not earn high returns because low entry barriers
mean that the competitive advantage is quickly copied. A second factor is the appropriability of the
value of the advantage. Sometimes parties other than the shareholders appropriate this value.
Invisible Assets
The problem of the resource base view as presented by Doyle, is that it has a strong emphasis on in-
ternal factors and resources. This could result in not considering the importance of consumers in-
sights to define the offerings, the way this information flows internally and the way offerings and
meanings are delivered externally. In Itami’s view corporate strategy is a need for a company that
wishes to take advantage of change and adaptation to consumer needs rather than be overtaken by the
environment. In this view invisible assets as resources are dynamic information flows and its chan-

nels. “By information-based invisible assets, I of course mean the stock of accumulated information
in the firm, but I also include the channels that handle the flow of information of importance to the
firm.” (Itami, 1987 pp. 18).
We will incorporate the notion of Invisible assets presented by Itami (1987). Invisible assets are in-
formation based resources. According to Itami, “invisible assets” are the real source of competitive
power and the key factor in corporate adaptability for three reasons: they are hard to accumulate,
they are capable of simultaneous multiple uses, and they are both inputs and outputs of business ac-
tivities. In this way following Itami we will place “Invisible assets” in three areas of the Doyle’s
model, as input resources, as resources within the internal processes and as outputs in the form of
identities and meanings. An important characteristic of invisible assets is that they represent a fit be-
tween internal resources and information/insights encountered as customer insights, competitor’s
knowledge, and other environmental information flowing from the environment to the firm, within
the firm and from the firm to the environment. Firm’s specific invisible assets can be found outside
the boundaries of the firm. For example, some invisible assets are embodied in people who do not
work for the firm. Brand name, for instance, is held by customers, not (only) employees (Itami,
1987). Moreover, Itami claims that when we say that “a firm has developed good channels to get up-
to-date information about what its customers are thinking”, it implies that the people who work at the
stores which sell the firm’s products hold a key invisible asset of the firm.
Type of invisible assets

Itami (1987) classifies the information-based invisible assets into three main information flows: En-
vironmental information flows: from the environment to the firm, creating invisible assets related to
the environment. This type includes productions skills, customer information, and channels for
bringing in information.
Corporate information flows: from the firm to the environment, creating invisible assets stored in the
environment. This category includes such invisible assets as corporate reputation, brand image, cor-
porate image, and influence over the distribution channel and its parts suppliers, as well as marketing
know how.
The third type of information flows is the internal: this originates and terminates within the firm,
again affecting the invisible asset stock. This category includes corporate culture, morale of workers,
and management capability, as well as the firm’s ability to manage information, the employees’ hab-
its and norms of effort expended. For example, those in charge of product development combine

technological knowledge with information about consumer demand to develop new products. Effec-
tive internal information flow is possible only when employees have high morale and a good corpo-
rate culture (Itami, 1987).
Finally, Itami claims that there is the need of a dynamic fit between resources and the environment.
He emphasizes how the way in which the goals a leader sets forth for an organization should be de-
stabilizing. If the goals are properly ambitious, the requirement that they are attainable forces the af-
fected parts of the organization to grow and develop. We will incorporate this notion in the brand
process as the firm’s “Vision”.
Corporate strategy is the organization’s blueprint, and all of the elements of that strategy must be
closely interrelated. Product/market portfolio, business operations, corporate resources, and imple-
mentation strategies all must mesh. Of these, corporate resources, especially invisible assets, are the
most important; they serve as the focal point of strategy development and growth (Itami, 1987). The
culture of the firm is an invisible structure that is powerful enough to shape the norms and rules em-
ployees follow. Their actions in turn determine the firm’s performance. Sales and profits are the re-
sults of actions by many people. Each bit of work an individual does is a starting point for determin-
ing the company’s performance, if the work is not done well, performance suffers (Itami, 1987).
4.4 Brands as innovative resource bundles
Proposition 2: A Company in the Financial Service industry can create brand experiences
based on a bundle of tangible and intangible resources encompassed by an identity
The firm must clarify what part of the customer’s bundle of desires it will focus on. There are never
enough resources to be the most appealing on every characteristic in the bundle; if for no other rea-
son, the product will no longer be attractive in price (Itami, 1987). A strategist must decide which
will be the selling points’ something must make an offering stand out from the competition. The
strategy has to be adjusted to the marketing focus. If product quality is the selling point, then corpo-
rate resources must be heavily weighted toward development, design, and quality control, and the
corporate culture must be strongly oriented toward technology. If supplementary services are the fo-
cus, strong marketing a good service distribution system, and adequate financial resources are re-
quired, etc (Itami, 1987).

Brand management is concerned with creating perceived added value for the company’s offer among
customers. In order to manage a brand’s identity, different brand identity models have been proposed
Kapferer, (1992); Keller (1993); Aaker (1996); etc. The brand image in short is what the customer
perceives; the brand identity is the message about the brand that the marketer wants customers to re-
ceive. Creating a positive brand image takes marketing programs that link strong, favorable, and
unique associations to the brand in memory (Keller, 2007). Nevertheless, customers can form brand
associations in a variety of ways other than marketing activities: from direct experience; through in-
formation from other commercial or nonpartisan sources such as Consumer Reports or other media
vehicles; from word of mouth; and by assumptions or inferences consumers make about the brand
itself, its name, logo, or identification with a company, country, channel of distribution, or person,
place, or event (Keller, 2007).
A brand is a multidimensional, multi-faceted and multilayered identity (Light, 2004). The dimen-
sions of a brand include in addition to features and functional benefits, emotional and perceptual di-
mensions (Doyle, 2006). Hence, an identity provides a language for executives to discuss brands in a
meaningful and precise way. In choosing a focus, each firm must consider its own corporate re-
sources (Itami, 1987). Without a common framework it is difficult, for non-marketing managers in
particular, to contribute to discussing the value and potential of a brand (Doyle, 2006). Managers
need to be able to judge, for example, whether an advertising campaign or new design is consistent
with the image of the brand and leverages its strengths (Doyle, 2006). Finally, a model contributes to
developing branding strategy. It illuminates the important issue of how to extend the brand to capture
new growth opportunities (Doyle, 2006).
Levitt (1980) proposed the “total product concept” model, claiming that “the way in which the man-
ager operates becomes an extension of product differentiation”. In his view products are almost al-
ways combinations of the tangible and the intangible. In this model Levitt proposes that the product
can encompass different levels of offerings from the generic basic level to be in the market, the aug-
mented where “what the customer expects may be augmented by things he has never though about”
to the potential level, where “everything that might be done to attract and hold customers”. He also
claims that many times what differentiates a firm from others is how well they manage marketing,
not merely what they market but rather “the process, not just the product, that is differentiated. Nev-
ertheless this model did not integrate all of the dimensions, facets and layers that a brand represents.
“What distinguishes a brand from its unbranded commodity counterpart and gives it equity is the
sum total of consumers’ perceptions and feeling about the product’s attributes an how they perform,

about the brand name and what it stands for, and about the company associated by the brand
(Achenbaum, 1993)38 . A brand is then more than a product, because it can have dimensions that dif-
ferentiate it in some way from other products designed to satisfy the same need.
Kapferer (1997) presented an interesting model of a brand. He suggested to encompass the identity
of a brand into six dimensions. Physical (name, design, general appearance), Reflection (Image of
the target audience as reflected in the brand’s communications), Relationship (how the brand seeks
to relate to the customer), Personality (the character of the brand e.g. serious vs. creative), Culture
(background and values of the brand) and Self image (how the customer sees himself in relation to
the brand). In his view each dimension has to be managed to influence the customer’s image of the
brand. In addition to the six dimensions he presented the core of the brand, which is the DNA or
guiding principle. Similarly, Keller (1993) presented the Customer-Based Brand Equity model. A key
contribution of this model is its hierarchical organization beginning with the question “who are
you?”(brand identity), then “what are you?”(brand meaning), Following “What about you?” (brand
responses) and finally “what about you and me?” (brand relationship). The importance of these mod-
els is the ordering of the steps as in a “branding ladder”, from identity to meaning to responses to re-
lationships. That is, we cannot establish meaning unless we have created identity’ responses cannot
occur unless we have developed the right meaning; and we cannot forge a relationship unless we
have elicited the proper responses (Keller, 2007).
It is within this understanding where we believe that the bundle of resources encompassed by a brand
have to be designed and delivered through the required identity to create the necessary meaning, re-
sponses and relationships. It is here where the concept of invisible assets links the resource base view
of the firm with the brand identity models. The invisible assets will contribute to designing and de-
livering the right meanings by gathering the insights from the environment, combining them inter-
nally to form an identity and delivering as meanings and perceptions externally to form an experi-
ence with specific responses that can ultimately result in a relationship. In order to form an identity
we believe that it is necessary to understand the environment and customer to then set the right vi-
sion, define the core or essence of the brand and then encompass the resources into a hierarchical
identity. This is guided by the essence and based on the features and characteristics of the delivered
experience. We will follow this understanding when building the practical model for our case study.
38 c.f. Kevin L. Keller, Strategic Brand Management 3th ed., 2007, Prentice Hall
Proposition 3: Brand innovation is based on a bundle of both tangible and intangible assets de-
livered to consumers as an experience (features, functions, emotional rewards, values and per-
sonality)
In our view innovation does not only apply to product and service level technological improvements.
We disagree with views such as those presented by Jesper Kunde when he writes that the focus
should not be on innovation arguing that highly innovative companies such as Sony have failed be-
cause although they created many new devices they were not able to perform well39. We believe that
companies such as Sony and Nokia, which in the last decade have produced many new types of elec-
tronic devices can fall in the trap of not being highly innovative but rather highly creative with the
risk of having some degree of “marketing myopia” (Theodore Levitt, “Marketing Myopia”, Harvard
Business Review, July-August 1960, pp. 45-56). Innovation is not about creating a new product or
service; it is about creating new customer value that satisfy genuine consumer needs through experi-
ence improvements, reducing costs or a combination of this.
Innovation can be achieved by having new business models, improved logistics, new powerful dis-
tribution channels, or processes. An innovation is more often conceptual rather than technological,
although a technological advance can be the main driver (Aaker, 2007, Pg, 210). Following the re-
source base view supported by Doyle’s model and the concept of invisible assets we believe that in-
novations have to be formed by combining internal resources and capabilities with environmental
insights and delivering this effectively as meanings and experiences externally. Hence innovation
does not occur only in the product level but it is rather the bundle of tangible and intangible re-
sources that can be encompassed by a brand identity.
Consequently, the focus should not be on selecting a generic strategy to create uncontested market
space (Kim & Mauborgne, 2005) or discount business strategies to create value while destroying
value of others (Moesgaard & Poulfelt, 2006). Rather, it should be on consistently creating a valu-
able experience for the customer, whether this is enjoying a coffee at Starbucks, being able to fly on
Ryanair while paying very low prices or visiting Cirque du Soleil to have a relevant and differenti-
ated experience. Only through creating genuine customer value through innovation and the effective
marketing of the innovation will a company be able to have a differential advantage in today’s envi-
ronment.
39 Jesper Kunde, Unique now or never, 2002, pg., 288

David Aaker recognizes that the concept of “newness” is not black and white (or blue or red) but that
there is a spectrum, from the creation of a new category to something less dramatic. “Innovations
that may be dramatic but do not lead to a value jump are seldom drivers of a new business are-
na”(Aaker, Strategic Market Management 8th Edition 2007, pg., 210). However Aaker has failed to
recognize the importance of integrating processes to design and innovate the brand experience and
has instead focused on presenting eloquent analyses on how to create, organize and manage brand
associations, awareness, loyalty and perceived quality after the value creation process has taken
place.
Larry Light (2006), argues that there is a logical conversion taking place between previously tangen-
tially related disciplines of design management and brand management. He recognizes that today is
essential that functions including marketing, innovation, and design work together within brand
management, to create products and services that promise relevant and differentiated brand-designed
consumer experiences.
Today the importance of design is widely recognized as design is about enhancing the value of a cus-
tomer experience whether it is by offering both cheap and stylish furniture through designing a
logistics/service system which can reduce costs significantly while improving the overall service ex-
perience (IKEA), a new car (Jaguar) or an electronic device accompanied by a system to download
music and organize it (ipod - itunes).
In short we believe that business is about understanding consumers to then being able to grow or-
ganically and profitably through innovation and effective marketing. Companies are facing tremen-
dous challenges in a new and challenging marketing context. They need to break out of a vicious cy-
cle of competitive benchmarking and imitation (Kim & Mauborgne, “Think for yourself”, Financial
Times, 2003).
It is imperative for companies to create a “differential advantage” based on processes that can maxi-
mize economic value (Doyle, 2001), and which can lead to organic growth through relevant and dif-
ferentiated brand-design consumer experiences (Light 2006). Only by creating genuine customer and
stakeholder value will companies be able to achieve a sustainable competitive advantage. Today sus-
tainable competitive advantage can only be pursued by leading, not following benchmarks, by inno-
vating through creating genuine consumer value and/or reducing costs. This has to be achieved

through innovating, designing and marketing the product or service to create a relevant and differen-
tiated experience.
We believe that brands will increasingly be key to a company’s success. Therefore, to be a leading
company, it is necessary to craft a context specific, capabilities-based brand management process
rather than imitating generic strategies. This process should be simple and serve as an operationaliz-
able framework to guide the resources of an organization to the objective of creating a differential
advantage and maximize shareholder value.
4.5 Brand Management from Resources to Meanings through a Process
Research question 2: “What do the stages of the brand management process consist of and how
can the process be applied to a case?”
Proposition 4: A financial services company can manage a brand through a 5 stage process:
Analysis, Vision, Experience Design, Operationalization and Evaluation.
Traditional brand management processes are systematic, following a step-by-step, analytic process.
This type of processes have been based on the classic marketing model first presented by Philip Kot-
ler (1967). This process was based on a militaristic approach, which consisted of three steps: Analy-
sis, Planning and Control. Following Kotler’s model Park et. al. (1986) introduced one of the first
strategic brand concept-image management processes. This process was concerned with planning,
implementing and controlling a brand concept throughout the life of the brand. In this article Park et.
al. criticize positioning/repositioning strategies, introduced by Trout and Ries (1979), Aaker and
Shansby (1982), etc. for lacking considerations on how an image could be managed over time.
Kotler (1991), adapted his three step model to include a forth step: Implementation. In one of the
first approaches to building brand equity Keller (1993) introduced the customer based brand equity
model mainly concerned with creating and managing associations. Following Hamel and Prahalad
(1994), in an article titled “Competing for the future”, introduced the notion of strategic intent. Their
core argument was that organizations needed to provide meaning to their strategy and future direc-
tion. This led to the inclusion of a fifth step to the classic marketing process: Vision. Based on this
basic five-step sequence many other processes have been introduced focusing more on the notion of
building and managing brands.

The brand identity-planning model presented by Aaker (1996) focuses on following a systematic step
by step approach to create a brand identity. The model was divided into three main tasks: strategic
brand analysis, brand identity system, and brand identity implementation system. This model was
constructed through the collection of many business cases and examples. The brand identity-
planning model considers every aspect in the brand management process from “Analysis” to “Track-
ing”. Furthermore this system has been utilized by many companies and students for its simplicity
and operation-ability. However this model is mainly concerned with guiding companies in creating
an identity of “how the brand would like to be perceived”. Hence, this model has a dominant external
orientation on how to create a set of associations to build brand equity, lacking further internal organ-
izational culture, processes, capabilities and human resources related aspects.
Another, key brand management process was introduced by Chernatony in his book “From Brand
Vision to Brand Evaluation”. As described in the title this book presents a systematic process encom-
passing eight interconnected steps with the aim of bridging the internal and external brand develop-
ment perspectives. While this process presents interesting managerial tools, brand frameworks and
activities based on human resources practices, vision, leadership and organizational culture; it disre-
gards the importance of integrating internal value adding processes and the creative functions related
to enabling and directing the creation of a brand.
Doyle (2002) introduced an important brand management model based on the resource base view.
Through this model Doyle argued that the internal processes of a firm based on its intangible assets
had to be managed and directed to create a differential advantage with the ultimate objective of
maximizing shareholder value. Doyle’s main argument is that brands add value for consumers by
simplifying the choice process and increasing satisfaction. Following, by creating customer value,
brands make possible enhanced shareholder value.
In short Doyle’s contribution meant that through successful brand management, managers could in-
crease the net present value of the company’s cash flow. Doyle’s contributions re-contextualize the
traditional normative marketing school by basing its brand management approach in both a consumer
centric and value adding processes approach. Nevertheless, Doyle’s Value-Based Marketing philoso-
phy is mostly concerned with Marketing Strategy and lacks considerations related to leadership, vi-
sion, human resources, organizational culture and the creative aspect of brands.

While all of the above mentioned models have contributed significantly to the brand management
literature, a common flaw is that the operationalization of these processes and systems often lacks
coherence, flow and is fragmented from its initial stage. This is because brand managers used to
work primarily on issues such as situation analysis, trend analysis, market segmentation, brand posi-
tioning, brand strategy. Following, the next step in the process was to hand a creative brief to the
creative people. Creative briefs contained words like “tone, manner and style.” The idea was to cre-
ate a particular personality or style for the brand. However brand personality needs to be built in, not
attached on, to the brand. Brand styling needs to be replaced with brand design (Light 2007).
Brand Process Overview
In this section we will present an overview of the theoretical process. Following the concept of brand
design as defined by Larry Light as “Promising and delivering relevant and differentiated, innovative
designs of brand experiences”. We will construct a process based on the five main steps acknowl-
edged by both the marketing and brand management fields. Since our aim is to ensemble a generic
process. This means that the stage evaluations should only be executed by managers based on the
situation they are facing after executing the stages in practice.
We will base our brand management process partly on the most important elements identified from
the most influential proponents in the field of brand management based on the resource base view as
proposed by Doyle. In addition to this, we will consider the most up to date insights from case ex-
amples, practitioners and consultants. An important aspect of this model is that it will borrow ele-
ments from the innovation management and human resource management fields in order to set the
stage to improve the development and delivery of brand experiences. These aspects will also aid the
brand by improving the conditions for knowledge creation and transfer between stages, stakeholders
and with the consumers.
Even though we are using a 5 step systematic process, this is only a way to depict a process, which in
reality cannot be represented by a simplistic framework. Although the model is depicted in a sequen-
tial form, we recognize that in practice there are many overlapping functions and that each stage of
the model should inform the others. Furthermore when this theoretical process is applied in practice
it could begin in any of the steps. The initial step will be determined by the situation the firm is fac-
ing. Finally, while this model is a process of change and alignment, it is also a process of guiding de-
velopment. Therefore all of the steps of the model in practice follow an ongoing evolution.

The brand management process stages, which we will consider are:
1. Analysis: Context, Competitors, Customers, Self (Where are we now?)
2. Vision: Envisioned Future, Brand Purpose, Brand Essence, Brand Values (Where do we want
to go?)
2.1 Stage Gate Evaluation: Fit between vision with current state (culture, resources)
3. Design Experience: Brand framework, identity/pyramid, experience realm (How do we plan
to get there?)
3.1Stage Evaluation: Fit between value chain and intended brand experience, brand experience
configuration evaluation: value adding, different, relevant?
4. Operationalization: Internal, External (How do we implement the plan?)
5. Renovation: Performance Evaluation, Brand-safeguarding (How do we manage progress?)
Figure 4.1 source: adapted from brand design process Light (2006)
It is important for the reader to recognize that although we have incorporated to the model two stage
gate evaluations 2.1 and 3.1 (following Cooper stage gate model, 1990). Their function is to evaluate
individual stages after these are completed in practice and improve knowledge transfer. Hence this
stage evaluation steps will not be further discussed in this paper.

Top management needs to be deeply committed to setting the direction and facilitating the brand
management process because it is marketing and innovation which drives growth and shareholder
value. The essential idea of the brand management process is offering customers superior value. By
delivering superior value to customers, management in turn can deliver superior value to sharehold-
ers. It should now be noted that an important element of this process is the brand framework. The
brand framework is the result of all the initial three stages (Analysis, Vision, Promise). The purpose
of this framework is to guide and facilitate a coherent operationalization of the brand experience.
Thus it is a framework, which will set the stage for creativity, innovation and design to interact with
the brand strategic vision and environmental analysis. The brand promise and its configuration are
the result of the framework.
In the following section we will introduce each of the theoretical tools and models, which constitute
the proposed process. We will begin by introducing the brand framework. This is because the brand
framework has a very important role in creating the stage for business and creativity to interact. The
brand framework is constructed and directed by the analysis and vision steps. However its role in
practice is to guide and set the direction for creativity to create the promise and creative execution
delivered as a brand experience.
Proposition 5: Environmental Understanding, Corporate Vision, and the brand identity guided
through the brand essence can set a framework for the design of experiences.
Brand Framework
T.S. Eliot “When forced to work within a strict framework, the imagination is taxed to its utmost -
and will produce its richest ideas. Given total freedom, the work is likely to sprawl.”
The brand framework, aims at strategically guiding the creative functions in order to deliver a valu-
able designed experience to consumers. The importance of the brand framework is related to the
conversion taking place between previously tangentially related disciplines of design management,
innovation management and brand management (Light, 2006). It is essential that functions including
marketing, innovation, and design work together within brand management, to create products and
services that promise relevant and differentiated brand-designed consumer experiences(Light, 2006).

The essence of the brand framework concept is to aim at streamlining creativity. Larry Light, when
CMO at McDonalds (2002-2005), and his team created the framework to align brand management,
innovation and design functions and to keep them on target. In that case “creative people” were en-
couraged to stretch their “creative thinking” as long as they stayed within the brand framework- the
external agencies also had to play by this “rules”. McDonald’s internally and its agencies became
more creative because they knew the boundaries in which they had to work. The "I'm Loving It"
campaign was born out of this framework and brought to life new relevant and differentiated offer-
ings: from Salads to Chicken sandwiches, McDonalds moved away from their positioning strategy
and open the door to new profitable segments. In 2005 McDonalds worldwide became in terms of
volume the number one packaged salad and chicken restaurant apart from an array of other new
healthy products.
The brand framework is constituted by five key aspects: Outer framework, Analysis, Vision and
Promise. The outer framework is formed by the brand policies, pricing, distribution, legal possibili-
ties, etc. The brand policies and other elements of the outer framework are firm and context specific.
For example in the case of McDonald’s a children’s manifesto was created to guide the development
of healthier products and respect children’s rights.
Following there is the analysis section. The ultimate function of this is to device a segmentation
strategy and to gather competitor/context knowledge and consumer insights. The analysis will guide
managers in devising a Vision. The Vision is composed of envisioned future, brand purpose, brand
essence and brand values. Consequently, the brand vision will guide the design of an experience re-
sulting strategically in the configuration of a brand pyramid. The brand pyramid will allow for flexi-
bility in its lower levels while its top formed by the brand values and personality will have a strong
focus to remain consistent over time. The center of the framework is the essence which will guide the
evolution of the brand.

Figure 4.2 source: Model adapted from interview with Larry Light (2007) Appendix 3.1
In short the brand framework will guide organizations to succeed in delivering its mission to the
market. This is done by guiding the creation of a promise which will then be delivered to the con-
sumers, consistent with the essence and within the brand policies. This will guide the organization
into following the brand values, and adopting the right design characteristics which will interact so-
cially and aesthetically with its stake-holders.
Once a clear brand framework is established organizational actors coming from different depart-
ments are given freedom to interpret and collaborate in the design and delivery of an experience.
This freedom and flexibility in the peripheral areas of the framework will also allow consumers and
other stakeholders to interpret the brand in their own way and according to their own needs without
trapping the brand into a stiff positioning. This environment will define the direction which the brand
will take maximizing possibilities to enable the brand to evolve and exchange knowledge globally
and locally with its stake-holders and environment.

The case considerations for the implementation of the brand framework will consider aspects of the
different innovation processes that have been presented related to brand management. This will be
linked to the field of marketing based on following a consumer oriented process which will facilitate
the integration of consumer insights into the brand management process which can inform the design
of a relevant and differentiated brand experience. This stage of the process will consider the three
key elements of a market orientation: intelligence generation, (internal) dissemination, and respon-
siveness (Kohli and Jaworski, 1990).

5. Brand Management Process applied to Saxo Bank
5.1 Applying the brand management process
We shall in the following case of Saxo Bank look at how the brand management process can be op-
erationalized from a strategic perspective. This means that we will utilize the sequential construction
of the model by analyzing and discussing implications related to each of its stages. However, the
level of analysis will remain strategic. In other words, it is up to the Saxo Bank management to trans-
late the strategy into the actual execution plan. This is in order to remain in a strategic perspective
throughout the thesis and not fall into the trap of focusing on minor details that in the end are deter-
mined by the method of execution.
The second reason for choosing this approach is related to our insights as to what way of implemen-
tation is superior to another. Even though we have accumulated an extensive amount of information
on the case, we as authors nor as employees posses sufficient tacit or explicit knowledge to decide
what way of implementation serves Saxo Bank the best. This is a management task that needs
thought through considerations based on knowledge accumulated all the way, back from the birth of
the company.
In order to craft an understanding of the company we will set out by sketching up the history of the
company, the offerings, touch-points with customers and IT-technology. The self-analysis will look
into other areas like; financial performance, existing brand image, brand heritage, experiences/
strength/capabilities, organizational values, core processes. Combined this provides the reader with
solid insights to Saxo Bank and the issues related to applying the brand management process.

5.2 History of Saxo Bank
Saxo Bank was established in Copenhagen in September 1992 as an independent alternative to the
brokers and Banks, which served the Danish and Scandinavian market at the time. It was founded by
the two joint CEO’s, Kim Fournais and Lars Seier Christensen, who are still the largest shareholders
in the company. At that time Saxo Bank was a brokerage company that operated under the name
“Midas Fondsmæglerselskab”. Midas received authorization from the Danish Financial Supervisory
Authority in May 1996 to operate under the EU Investment Directive. Before 1996, no regulatory
framework existed in most of Europe and the introduction of the EU rules were essential to creating
a uniform and strictly regulated environment across the European Union. Saxo Bank was the first
Danish company to be authorized under the new rules. About the same time the company imple-
mented the visionary internet-based strategy that should prove to be successful and position the com-
pany among the first financial institutions to follow an internet-only strategy. Midas rapidly devel-
oped from a small apartment based operation into being Denmark's largest company of its’ kind dur-
ing the 1990s with average annual growth rates of 60%40.
By June 2001 the company acquired the status as a Bank and changed name to Saxo Bank, named
after Saxo Grammaticus, a famous Danish warrior/theologian and alleged to be the first historian of
the Danish people.
Today Saxo Bank has expanded to become a truly global player, with offices in London, Marbella
and Singapore and another 4-6 other offices in the pipeline to assure a global reach. Saxo Bank em-
ploys today more than 1000, a double up in head count since January 2006 and estimates another
double up before entering 2010. These estimates are based on the “Strategy 2010” which is a road-
map that outlines the direction, strategy and goals in the years to come.
5.3 Saxo Offerings, Touch-points and Experiences
Throughout the years Saxo Bank has expanded its offerings to become a truly multi product facilita-
tor, offering FX, bonds, stocks, funds and derivatives.
Saxo Bank’s success is indirectly related to the trading success of its clients. Saxo Bank is a market
facilitator, which means they are solely earning from the velocity and volume41 of the trades and not
whether a particular trade has been profitable or not. However, if the client is constantly loosing
40 Annual Report Appendix 4.1

41 Relates to how often a client trades and the amount of money he trades.
money on his trades he will soon look around for a better alternative of investment or ultimately run
out of money. Having this in mind, Saxo Bank has initiated a range of seminars with the purpose of
educating the clients to become better traders. Not only will the clients gain a deeper understanding
of the trading system and become more advanced, but the collective knowledge accumulated during
the seminar sessions will build on the clients´ intuition of the mechanics in the capital markets. As
mentioned earlier this is a vital part of creating loyal customer or even brand advocates. These free of
charge services build on an important relationship that becomes essential in this business. Since the
business model is based on the online channel the importance is reinforced as the touch-points with
the existing and potential clients are diminishing.
Touch-points play an important role in the creation of customer experiences, as they act as the inter-
face in which the experience is crafted. David Aaker supports this in an interview conducted in April,
2007 when asked about the key considerations for success in the online financial service industry:
“Organizational associations and designed experiences in every touch-point”42. However, online
touch-points alone are not enough; companies within this industry have to look at the whole mix.
“Customers want a variety of channels that offer ease, convenience and peace of mind” 43.
The physical touch-points of Saxo Bank are constituted by, offices in Copenhagen, London, Singa-
pore, Marbella and soon Zurich too. They are run as profit centers but with an overall strategy and
directions from the headquarter, in Copenhagen. In order to strengthen the physical presence and
meet potential clients physically, Saxo constructed a team whose main task is to go to expos and con-
ferences to represent the company. This was initiated in November 2006, as recognition of an online
presence alone is not sufficient. The Expo-team operates as an independent entity, located in the pri-
vate sales department. As such the Expo-team has no corporation with marketing. This can very well
result in inconsistent market communication if these departments are not coordinated and aligned.
The site www.saxobank.com is the largest of the touch-points in terms of traffic and activity. The
people that visit this site are generally non-existing clients that either surf by in curiosity or go there
in order to sign-up for an account. Since this site is the first a potential client encounter, it is impor-
tant that it creates the right experience no matter if it is a novice within online trading or an experi-
enced day-trader that is shifting from another facilitator. Today Saxo Bank has a wealth of landing
pages and redirected sub-pages that all contain tons of information. A newcomer can easily feel lost
42 Aaker interview appendix: 3.2

43 “Market Leader”, Issues 7, WARC
in the information overload especially if he in addition is new to the trading industry. Many new-
comers will consequently get an overwhelming negative experience and the impression that its too
complex and difficult to get into. Saxo Bank faces the challenge of creating the right experience
when entering the main site no matter what customer segment the potential client belongs to. It needs
to appeal to the novice by creating an experience of simplicity, easy-to-use and hassle-free. At the
same time it needs to give the professional trader an experience of highly technological and sophisti-
cated trading options.
Saxo Bank is today one of the few brokers to develop 100% of its IT-technology in-house and has
approximately 1/3 of its 1000 employees allocated to this particular business area. This is what dis-
tinguishes Saxo Bank from many of their competitors and has earned the bank a reputation of state-
of-art within IT-technology. Based on this knowledge the company developed the main platform –the
Saxotrader and has recently extended this to three alternative platforms. Recognizing the fact that
active traders cannot be tied to their PCs 24 hours a day, Saxo Bank has introduced a web-based trad-
ing platform that allows FX trading from any PC or WAP-enabled mobile phones44. The 3 platforms
are respectively the Saxotrader, Webtrader and Mobiletrader, and possess great potential as they en-
able Saxo to reach its clients, whether sitting at home, at a computer down town or on the move
through the Mobile.
The platform gives easy access to real-time quotes, market information, instant trading execution and
risk management45. As part of a collaboration with some of the industry’s leading companies, do the
Saxotrader provide advanced charting and analysis´ directly derived from Deutsche Bank, UBS and
Barclays. Not only do they provide the clients with useful insights, they play a vital role in the effort
to build credibility and trust from a relatively unknown banks perspective.
When a potential client has registered and opened and account he can download one or several plat-
forms and have them installed on his PC or mobile -ready for trading. Since the platform provides
the client with all necessary information, this will often be the only interface between Saxo Bank and
the client. Therefore it becomes extremely important to utilize this single touch-point in all possible
ways to engage and communicate with the client so he does not feel “left on his own” and thereby
has a higher possibility of switching to a competitor. The platforms are not only recognized by indi-
44 www.saxoBank.com
45 The SaxoTrader offers all products and services whereas the other two platforms have a limited selection.
vidual traders and industry-magazines as state of the art, many competitors have acknowledged Saxo
Banks superior IT-skill and consequently outsourced this part of their business. Today this white-
labeling partner business is among the largest sources of revenue where competitors team up with
Saxo Bank in the so-called “co-opetition”46 . Such competitors include brokers like the well known
E’trade and Swiss Synthesis Bank, who buys the platform on a white label basis, and pay approxi-
mately 50% of their commission income in return. When looking at the offerings at Saxo Bank
whether products, seminars, it-support, etc it is clear there is no emphasis on the customer experience
but exclusively on the functions and features the offerings provide47. Saxo Bank completely misses
the point and importance of the underlying emotional rewards the customers seek. The effect of this
is further reinforced by Product Development’s technology driven approach instead of a customer
need and experience approach. Nevertheless, Rabbe Ekholm recently joined Saxo Bank (June, 2007)
with the purpose of bridging “Marketing”, “Sales”, “Product Development” and “Quantitative
Analysis”. Rabbe has an impressive track record from FMCG companies and financial service com-
panies where he recently directed Morgan Stanley. Rabbe quickly recognized the lack of a customer
need approach and has initiated a shift in the department saying: “In the past Product Development
has been very focused on the technical aspect of what they do. Instead I want to focus on the clients
and their needs, about what they are, who they are, where we can find them and what problems they
have”. As a consequence he renamed the Product Development department; Global Solutions and
gave it the responsibilities of a profit and loss centre. This is a way to make sure that the innovations
are not being developed, for the sake of the innovation or for the sake that technology allows, but
because they serve some genuine customer needs.
This initiative is part of a company wide restructuring that was announced in August 2007, while
writing this paper. In short the company has grown tremendously and there is a need for a more de-
centralized and regional business model. The execution of this organizational reconfiguration is cur-
rently being planned and is supposed to be in effect from mid September 2007. As Saxo Bank is un-
aware of the emotional rewards and experiences the customers seek through the offerings, conse-
quently they do not manage touch-points with regards to customer experiences. This is evident
through the uncoordinated activities between the touch-points, like for instance the lacking coordina-
tion of market communication between Marketing and the Expo-team, which results in inconsistent
brand image and random customer experiences.
46 Corporation among competitors.

47 Refering to the ”Offerings & Touchpoint” chapter
Saxo Bank needs to actively manage all the touch-points with the customer, if they are serious about
building a strong brand. Moreover they need to be creative in inventing new value adding touch-
points. A way of doing this could be by engaging customers and potential customers through viral-
marketing48 in the many on-line financial discussion forums and communities. We shall now turn to
the actual case analysis succeeded by the other four stages of the brand management model.
48 Kirby, J "2006# “Connected Marketing”, BH Oxford

5.4 Stage 1: Brand Analysis Theoretical
Marketing research is the function that links an organization to its market through the gathering of
information (Hair et al, 2000). This information allows for the identification and definition of market
driven opportunities and problems and serves as a part of the foundation on which the future actions
are decided. A social constructionist perspective on emotion (Averill, 1980; Harre, 1986) guided by
an interpretive research framework (Holbrook, 1990) offers at least the possibility of genuine con-
sumer insights which can be translated by marketing agencies into practical normative principles in-
forming the development of marketing strategy. In a practical level, this means among other possible
practices, executing market research through ethnographic, observation, prototyping and other simi-
lar methods in which the consumer is in the center of an open dialogue or is studied in his normal life
context.
There is always difference to be discovered if we observe the everyday experiences of employees

and customers (Ind & Bjerke 2007, pg.,10). We recognize, as argued by Ind & Bjerke (2007) that it is
in discovering and understanding the “difference” that questioning and learning takes place.
Only if the organization is attuned to its external audiences and capable of sharing knowledge both
internally and with its consumers and stake-holders; will it be able to understand customer emerging
needs and deliver valuable solutions. The importance of ethnographic or anthropological research
has recently been recognized by Aaker (2007), who states that by accurately observing not only what
is done involving the target or service but why it is being done, companies can achieve a deeper level
of understanding of the customer’s needs and motivations and generate actionable insights.
Once this has been stated, we will in the present stage combine a social construction research meth-
ods and understanding as an ontological object of study; with normative conceptual models, which
can serve as the epistemology to guide the research efforts. Various analytical frameworks have been
presented including Levitt (1960); Kotler (1967); Porter (1985); Barney (1991); Doyle (2000), etc.
Whereas Porter emphasizes the understanding of the competitors and their market positioning; Bar-
ney the understanding of internal resources that can be combined and delivered externally; Levitt,
Kottler, Aaker, etc focus on understanding customers needs. We will base our approach primarily on
understanding consumer needs. Nevertheless, we recognize as pointed by Doyle (2001) the need to
analyze the value creating processes from a resource base view perspective (Barney, 1991) which

can lead a company to create a differential advantage.
Hence, based on both Aaker’s strategic brand analysis and the analysis of value adding processes
proposed by Doyle; we have constructed a modified framework, which we consider appropriate
when carrying market research and analysis. Aaker’s (1996) presented the “strategic brand analysis”
stage as part of his brand identity framework.
We believe that this approach captures most of the vital elements that can guide the analysis within
the brand management process. Elements of this approach include customer-, competitor- and self-
analysis. Nevertheless, we believe that this approach fails to consider important elements in the con-
text where a company operates. Such factors include the attractiveness of the market, the trends, im-
pact from culture and sub-cultures as well as technological developments that may have an impact on
the industry. Consequently we have extended the strategic brand analysis to include a context analy-
sis.
Table 5.1 source: Adapted from Aaker (1996), Doyle (2001),
5.4.1 Context Analysis
We believe that not all the relevant factors are captured through a competitor-, a customer- and self-
analysis as Aaker (1996) prescribes. A missing factor is the situation that surrounds the company in
terms of market attractiveness, relevance, the evolution of culture and sub-cultures, global trends and
other influencing factors like technological developments.
A main weakness of existing brand models is that they generally assume that the market attractive-
ness is equal in every market (Doyle, 2004). This is not the case as industries like soft drinks, to-
bacco and cosmetics enjoy much higher profitability than e.g. textiles, steel or car manufacturing49 .
49 Doyle, 2006
Consequently the performance of a brand will vary depending on the profitability of the industry in
which it operates. This is important to have in mind when evaluating the brand.
When the market attractiveness has been evaluated one must turn to look at the culture and sub-
cultures that are significant factors in the determination of peoples behavior.
Global trends should also be analyzed as these can have an impact on consumer behavior. Patricia
Aburdene (2005), discusses the importance of these trends. She argues that one of today’s trends, is
that consumers prefer to buy from companies who share or reflect their values and lifestyle. This
same argument is supported by Chernatony (2001) in a study of the financial service industry.
Within the financial service industry and especially the online-business, technological developments
possess both opportunities and at the same time, threats from disruptive innovations. “A company
can do all the right things –listen to its customers, invest in research and development, compete ag-
gressively –and yet fall victim to a new technology that seemed at first, almost irrelevant” (Clayton
M. Christensen, Harvard Business School). History has shown that especially with high-tech indus-
tries disruptive innovations from time to time have reshaped entire industries. Hence, it is important
for companies to follow environmental trends and technological advances.
5.4.2 Competitor Analysis
Competition in financial services is fierce (Howard & Dunkin, 2003). One way of countering such
threats is to develop valuable brand experiences (Aaker & Joachimsthaler, 2000). Instead of solely
focusing on competitors product offerings, size, positioning, etc, we believe that key in outperform-
ing competitors lies in competitor analysis based on solutions and experiences rather than solely
functional attributes. Turning to Levitt´s Marketing Myopia illustration of drills, many will probably
agree with his illustration and just as many will still segment the market by type of drill and by price
point, they measure the market share of drills –not holes; and they benchmark the features and func-
tions of their drill, not their hole, against those of rivals. They then set to work offering more features
and functions in the belief that these will translate into better pricing and market share50 . Instead one
must understand the job and improve the products social, functional and emotional dimension; in
short design the total experience. Whether selling to consumers or companies, firms must recognize
that goods and services are no longer enough; customers want experiences (Pine & Gilmore, 1999)
As experiences are constructed, in the same way these can be fragmented. Through a reverse engi-
50 c.f. Clayton M. Christensen (2005), ”Marketing Malpractice”

neering approach we can separate the customer experiences of the brand into measurable factors
following the construction of the Brand Pyramid: Features, Function, Emotional Rewards, Values
and Personality (Light, 1999). As the vital driver of corporate performance has become the experi-
ences it offers (Smith and Wheeler, 2002) it must be incorporated into the evaluation of competitors
and their performance. This is supported in a research by Shaw & Ivens (2002) that showed 71 % of
senior business leaders say the customer experience is the new battleground and is a source of sus-
tainable differentiation.
5.4.3 Customer-Analysis
Marketing is not about delivering the right product to the customers, it is about delivering the right
experiences and solutions that can satisfy their needs, where the product serves as a medium or tool.
As Theodore Levitt used to tell his students: “People don´t want to buy a quarter-inch drill. They
want to buy a quarter-inch hole”. This way of thinking is central to the concept of marketing and in
particular in the assessment of, a valuable segmentation. First one must understand the needs and re-
wards the customers seek, secondly one must decide which of those needs to serve, as the brand will
become weak and blurry if trying to serve all segments.
Aakers customer-analysis, consist of four elements; trends, motivation, unmet needs and segmenta-
tion. As we believe customer needs and its corresponding segmentation are of major importance we
will look into these and present the market-cube – a three dimensional segmentation concept.
“The underlying concept of market segmentation is fundamental to marketing. It has always been
and it is not a new idea but unfortunately there are still a lot of companies that want to market every-
thing to everybody, obviously that is not effective” (Light, 2007). The first approach to market seg-
mentation was carried out by General Motors. The big breakthrough came in 1968 in a paper by Rus-
sel I. Haley. He wrote it for P&G and it is probably the single most important document ever written
in market segmentation. What he pointed out is that the essence of marketing is not about products
for people, it is about satisfying consumer needs.
Much literature has been published on segmentation since; Levitt, 198651 ; Aaker, 1996, Kotler,
199652, etc. However, most of these have been based on normative approaches without incorporating
ethnographic research methods, observation and other methods, which could lead to genuine in-
sights. Furthermore these concepts do not acknowledge the complexity of consumers’ lives. Today
51 Levitt, Theodore. The Marketing Imagination. Free Press, 1986.

52 Kotler, Philip. Marketing Management: Analysis, Planning, Implementation and Control. Prentice Hall Press, 1996.
customers can have many roles. A customer can be a father, a colleague, a friend, a husband etc. at
the same time (Aaker, 1996, etc). These different roles can each be associated with different needs
and different behavioral patterns.
An approach to this type of analysis is the “market-cube” segmentation, which acknowledges that
customers do not only have a certain role but several roles in their lives and corresponding needs for
each role.
Figure 5.1 source: Adapted from interview Light (2007) San Francisco Appendix 3.1
This concept recognizes that consumer needs are not only based on the state, condition or context in
which they are but also on “who” they are and “why” they want. This can be understood as a three
dimensional segmentation. Where a cube has 6 sides and it can be seen from any of its sides. What
people want or buy is a function of “why” they want “who” they are and “where”, “when” and
“how” they need or want a particular offering. The challenge with the three dimensional approach
based on the cube figure, is that there is no top, there is no bottom there is no front and there is no
side. To look at three dimensions simultaneously is very difficult from a research or mathematical
equation point of view. So the way it can be simplified is by always starting with the “why” axis. In
other words by identifying the basic needs. That is the axis that should be considered first. Then the
next thing to be analyzed is “who” has that need and finally “how”, “when” and “where” they have
that need. So the logic of it is: “what” is a function of “why” are those needs, “who” has that needs
and “how”, “when” and “where” they have that needs. “Who” relates to the segmentation of people
by characteristics, demographics and lifestyles. “Where”, “when” and “how” consider the situation
in which the customer momentary finds himself and differs in time and geographical ways. Finally
the “why” reflects on the customers’ reason to buy. The importance of ethnographic and anthropo-
logical approaches at this point is that they enable managers to view human nature from other per-
spectives. These perspectives can then be integrated periodically into the “Brand Pyramid” (pre-
sented in the Design Experience stage) using questions such as “what it is”, “what it does”, “how
you’ll feel”, “who you are”.
5.4.4 Self-Analysis
Following Aaker (1996) the self-analysis of the company is carried out through four elements; “Ex-
isting brand image”, “Brand heritage”, “Strengths/capabilities” and “Organizational values”. In this
approach Aaker neglects the importance of financial performance. This element he however imple-
mented in his latest book “Strategic market management” (2007) arguing “the ultimate measure of a
firm´s ability to prosper and survive is its profitability”. We acknowledge this but, would like to shift
focus from profit to the shareholder value –a longer-term perspective that not only captures profit but
also growth and the value of intangible assets, such as for instance building on stakeholder relation-
ships.
Rising earnings can easily disguise a decline in shareholder value (Doyle, 2001). This brings up the
classic dilemma of management performance measured on short to middle-term financial targets,
which often result in sacrificing the long-term strategies. An issue that often puts activities that lower
short-term earnings such as brand building down on the agenda in favor of meeting the short-term
goals. This underlines the importance of having the brand building initiated by senior management,
who set the target and key performance indicators (KPI´s) for the operational management and
thereby prioritize the tasks.
To be able to make superior offers to customers, the firm must have outstanding business processes
that enable it to be more innovative than its rivals (Doyle, 2001). A company needs to identify these
processes that create value for the customers and the ones that act as a support function. This is im-
portant when leveraging the brand and engaging the customers through the unique value proposi-
tions. Doyle (2001) captures the essence of this in his brand management model based on the: “Re-
source based theory of the firm”.
Another vital aspect of the self-analysis is the culture of the company. As such culture captures the
“brand heritage” as well as the “organisational values”. One of the critical drivers for the success in
the innovation and design process or brand design is the corporate culture (Light, 2007) since a
clearly understood organisational culture provides a basis for differentiating a brand in a way that is
often welcomed by customers (Chernatony, 2006). The values of the culture clearly have to be
aligned with those of the customers and of the brand directed through the vision as noted by Cherna-
tony; clearly the more the values of the staff and customers concur with the brand´s values, the more
likely the brand is to succeed.
The experiences a company offers is a reflection of partly the products and services represented by
the “functions” and “features” in the Brand Pyramid (presented in the Design Experience Stage).
However the functions and features are no longer sufficient to succeed and the company has to look
at which experiences it is delivering to its customers. Shaw & Ivens, 2002 carried out a research sup-
porting this, where 85 % of senior business leaders say that differentiating on the physical factors is
no longer a sustainable business strategy.

5.5 Stage 1: Analysis of Saxo Bank
5.5.1 Context-Analysis
The capital market is the world’s largest market. Thus, the performance of a brand in the financial
services will vary significantly depending on the profitability of the sub-market in which it operates.
Branding in financial services is undergoing substantial changes, owing to the dramatic increase in
competition following deregulation and the threat posed by new entrants with retail branding experi-
ence and online possibilities 53 . Recently it began to seem that everyone was suddenly becoming a
competitor to the banks. The brokerages, the mutual fund companies, insurance companies and even
some non-traditional players such as AT&T, General Motors, Microsoft and Newcourt Capital are
attacking the capital markets54.
Today while financial security and trust are still important factors; banks, brokers and other financial
institutions are re-accommodating their offerings to situate the costumer at the centre of its offerings.
The online investment banks are growing fast as yet another important submarket. Large groups of
consumers have become increasingly sophisticated and more able to direct their own financial affairs
without the help of a broker through the transparency the Internet facilitates.
Some of the most important opportunities and threats in the environment are related to disruptive in-
novations coming from IT developments and consumer emerging cultures and sub-cultures. In this
respect, trends have been identified related to technology and channel convergence, the possibility of
customer instant access to financial services and interaction 24/7, online financial communities, etc.
Customer’s national cultures, historical trading habits and legal frameworks will also have a major
impact on the way financial services shape their offerings and opportunities in the environment.
The introduction of the Markets in Financial Instruments Directive (MiFID), has been considered
“the Big Bang in Europe” by industry experts 55. This represents a great opportunity to some compa-
nies, including Microsoft, which has identified three areas as particularly important for market par-
53Leslie de Chernatony and Fiona Harris, 2000, The Challenge of financial services branding: Majoring on Category or
brand values? BMMRU
54 Beasley and Schuh, 1996, Consumer adaptation to new banking paradigms pg., 2
55Ian Warford, capial markets director for Microsoft EMEA,
http://www.windowsfs.com/TheMag/tabid/54/articleType/ArticleView/articleId/2024/Microsoft-Offers-Cover-Beneath-
MiFID-Umbrella.aspx
ticipants to comply with MiFID at the moment. Microsoft more than 20 partners involved in this
program means an important symbiotic relationship, which has, “transformed the perception of Mi-
crosoft in the capital markets space” 56 and hence represent a growing threat to companies develop-
ing their own IT financial capabilities. Just as the Internet reshaped the brokerage industry another
disruptive innovation might emerge tomorrow and it is crucial that Saxo Bank is aware of this and
ready to identify them when they arise.
When discussing the future of financial services and branding, it has been observed that greater focus
would need to be placed on emotional rather than rational brand values in order to succeed in differ-
entiating their offerings57. Also a common need across the industry is related to a lack of congruency
between brand team members’ perceptions of their brands’ values and a lack of correspondence with
their brands’ espoused values58.
5.5.2 Competitor-Analysis
Saxo Bank’s competitors can be broadly categorized as online investment banks offering: online
Forex exchange, stocks, contracts for differences (CFDs), futures, options, wealth management and
other related services. However, Saxo Bank’s management have taken a “coo-petition” policy as a
facilitator, due to the great size of the capital markets. This means in the words of the CEOs that:
“where others see competition we see opportunity for partnership and where others see mounting
challenges, we see new opportunities and new sub-markets”.
Nevertheless, in order for Saxo to remain competitive and able to enter into profitable partnerships, it
is important that their offerings and value adding processes are second to none.
With this in mind, Saxo Bank’s competitors can be broadly divided into two groups, primary and
secondary competitors. The first group is constituted of direct competitors offering similar products
through mainly an online platform. While the second, is formed by major local, regional and global
conventional banks offering online investment services.
56Ian Warford, capial markets director for Microsoft EMEA,

http://www.windowsfs.com/TheMag/tabid/54/articleType/ArticleView/articleId/2024/Microsoft-Offers-Cover-Beneath-
MiFID-Umbrella.aspx
57 Jones (1999) c.f. de Chernatony and Harris, 2000, The challenge of financial services branding, BMMRU
58Leslie de Chernatony and Fiona Harris, 2000, The Challenge of financial services branding: Majoring on Category or
brand values? BMMRU
The first group of direct competitors is very diverse and consists of many smaller companies often
offering a limited product line. Companies identified in this category include: AC-Markets, FXCM,
CMC, FX Solutions, MIG FX, Gain Capital, Oanda, CMSFX, etc.
E-Trade also belongs to this group, however its relationship to Saxo Bank is a great example of the
coo-petition concept. Saxo Bank both cooperates with E-Trade by facilitating the use of its platform
as a WLP. The platform and services are adapted to fit E-Trades brand and offered to its consumers
who have access to the same trading possibilities. Since E-Trade competes in many of the same mar-
kets, it is considered a direct competitor. E-Trade strategy is based on targeting many of the same
consumer groups based on offering the same award winning platform while having a well established
brand identity and investing important amounts of money in consumer ethnographic studies, con-
sumer observation and similar approaches to research59. In addition to this, E-Trade’s strategy has
been supported by great advertising expenditures (e.g. in recent years the amount spent by major on-
line brokers, including E-Trade, Schwab and Ameritrade, have been more than the combined spend-
ing of Burger King and McDonad’s60).
Secondary competitors include conventional Banks such as: Nordea, Danske Bank, Deutsche Bank,
Santander, Citibank, UBS, HSBC, etc. Even though Saxo Bank’s offerings differ from most of its
competitors, conventional banks and other local online investment banks attract consumers based on
having a better understanding of idiosyncratic customer needs and trading habits or trust related as-
pects based on their brand heritage.
Currently efforts undertaken by Saxo Bank, related to analyzing and understanding competitors are
limited and have been mainly led by the “Product Development” department (renamed to Global So-
lutions, since August, 2007). This effort has been mainly limited to tracking the characteristics of
their offerings including: number of FX crossings, spreads, margins, commission rates, available
stock exchanges, etc. While this database is extensive and covers many relevant competitors, we rec-
ognize the need of integrating and carrying more strategic analysis of the competitive environment as
a pressing need for Saxo Bank. Such research has been scattered and executed across by different
departments and by diverse managers; resulting in waste of time, resources and inefficient sharing of
competitor knowledge and strategic insights across departments.
59 Interview with Christian Mørk Lauridsen, June 2007 E-Trade Senior Retail Sales Representative Appendix 3.7
60 Lehman Brothers report 2000 c.f. Online Brokerage Industry Report www.oag.state.ny.us
5.5.3 Consumer Analysis
Banking was developed as a product centric business based on rational thinking. Designed from top
to bottom without thinking about personalization, waiting time, the emotional aspects, Internet pos-
sibilities and overall customer experience. Customer trends identified today in the financial services
industry are related to customer individualization and self-empowerment, the need of customers to
belong to increasingly galvanized communities61, the need to simplify overflows of information to
customers almost to an “intuition level” and an emerging customer need to have relationships with
companies which share similar values62. Banking and financial services today should be understood
as the interface between a customer and his financial resources and possibilities. Thus the experience
has to be designed into the brand and delivered in each interaction.
Banks and companies in the financial services industry have recently been exploring new research
approaches in order to understand its customers better. In general these approaches have adopted a
more sophisticated, holistic, insightful research process based on stakeholder review, ethnographic
depths, consumer forums, expert discussions, semiotics and employee input. One of the approaches
currently being utilized in the financial services industry is the replacement of concept testing with
on-going exploratory research to discover insight that will lead to ways of effecting changes in line
with emerging banking technologies. This type of marketing research approach has been carried out
successfully in recent years by companies in the financial services industry including “Egg”, “Dis-
cover”, First Direct, Kiwibank, etc.
Saxo Bank has until now based its consumer research mainly on desk research and surveys. These
have been executed based on specific departmental needs and scattered across the organization. Saxo
Bank does not currently have a department dedicated to design, execute and gather internal and ex-
ternal research, which could guide consumer segmentation, the design of better solutions and market-
ing strategy. Furthermore there is little knowledge sharing across departments. While account man-
agers, sales people and exposition team members are having access to genuine consumer insights,
there is no systematized way of sharing this knowledge with other departments such as the newly
established “Global Solutions”, marketing and across the company. Furthermore, while the impor-
tance of insights related to local cultures, local trading experience and local trading habits is gener-
ally recognized among managers; there is little or no local marketing research projects. The insights
61 Saxo Bank, Strategy 2010, The road ahead

62 Zammataro, 1999
currently gathered by expatriates and local employees in Saxo’s satellite offices are not being shared
with headquarters making it difficult to deliver relevant and valuable solutions to consumers with
local needs. For example in the United Kingdom competition in the online investment market is
fierce and customer needs relate to level of sophistication; in Spain the customers are generally tradi-
tionalists less sophisticated and there is a need for education related to basic elements of the offerings
(e.g. Contracts for Differences CFDs were first introduced to Spain in March this year); in Singapore
some psychological needs have been identified by local marketing managers63; while in the Islamic
world and the United Arab Emirates needs are related to the concept of Islamic banking and Shariah-
principles which prohibits the charging and payment of interests, activities with an element of uncer-
tainty as well as gambling activities.
Saxo Bank’s role as a facilitator means that if they are to continue being selected by other banks and
organizations to enter into White Label Partnerships and agreements with Institutional Brokers they
also need to stay in touch with retail consumers in order to be able to deliver value by exceeding
their expectations. Saxo Bank has broadly segmented its private clients into “experienced specula-
tors, novices and traditionalists online and offline in their key markets”. While this approach resulted
effective in the first phase of the submarket evolution. Today we believe that Saxo Bank should seg-
ment its customer based on needs related to the consumer experience, knowledge, experience level,
culture specific, etc.
An approach could be based on segmenting the market following the concept of the market cube. By
asking five basic questions the insights gathered will guide the gathering of the content which the
offering needs to deliver (What is a function of= who they are, why they buy, where, when and how).
This approach while simplistic if combined with some of the research methodologies previously
mentioned will facilitate understanding across departments to ultimately create and deliver relevant
and differentiated brand designed consumer experiences.
5.5.4 Self-Analysis
Saxo Bank’s historic financial performance has been outstanding, above any market expectations.
The bank’s profit on ordinary activities before tax rose to Dkr. 223 million, an increase of 39% from
2004 to 2005 and of more than 2000% from 2001 to 2005.
63 Julia Ng Saxo Bank Singapore Marketing Manager

Similarly shareholder’s equity increased by 57% to Dkr. 336 million. Finally as a good indicator of
prospective growth, client collateral deposits growth in trading activity and earnings – reached Dkr.
3.7 billion in 2005. Based on this extraordinary performance Saxo Bank’s top management has de-
cided to adopt an aggressive growth strategy and has expanded its employee base to currently more
than 1000. Saxo has grown also geographically by opening offices in Singapore, the United King-
dom and Spain.
Saxo Bank’s existing brand image and heritage in Denmark and among its customers/partners is
based on the success of an innovative online trading bank with a proven successful growth strategy
and platform which has been given numerous #1 awards including “best online platform 2007”. Saxo
Bank has been positioned, as a source of “serious trading worldwide” targeting “experienced specu-
lators”, “novices” and “traditionalists”. Saxo Bank brand heritage is based on the culture of serious
traders and IT people who have been successful by combining their capabilities to offer a multi-
award winning multi-product platform. The owners have crystallized the values derived from the cul-
ture by following Jack Welch’s “Winning” spirit and Ayn Rand’s seven values. These are namely:
Rationality, Independence, Integrity, Honesty, Justice, Productivity and Pride. Saxo Bank has also
leveraged from this values into their rules of engagement, which guides employees to behave with
excellence towards their job, quality, communication, clients, etc.
Figure 5.2 source: Saxo Bank (2007)

It is clear to all who have been inside the company that there is a very vibrant and dynamic atmos-
phere. The employee values of the Saxo Bank appear everywhere on walls, mouse pads, as screen
savers, etc and after a little observation its evident that these are actually being acted and lived by the
employees.
A recent employee survey carried out by Rambøll64 supports this point. 90,62 % stated: “I am proud
to work for Saxo Bank” this is a convincing rate, which lies far above the industry average. 82.70 %
stated: “I am living the corporate statement”, again an above average score that illustrates the com-
mitment the employees feel towards the company. Nevertheless, as acknowledged by Lars Chris-
tensen in an email to all Saxo employees in June, 2007; the lowest score 56,77% was related to
“cross-functional cooperation”.
This can be explained historically as the bank has grown based on the integration of two key value
creating processes: financial and sales related and IT and product development. However the value
adding processes of other departments including marketing have been focused on peripheral activi-
ties such as creating online awareness through banner placement and advertising within financial
communities with little or no cross-functional cooperation which could lead the bank to create and
enhance a differential advantage based on genuine consumer insights. Furthermore Saxo Bank has
conducted little or no consumer research, which is key for this purpose. As a consequence the brand,
its identity and values have been heavily disregarded. The only place where it is possible to find in-
formation related to the identity, functions or values of the brand is a brief paragraph in the recently
published “Strategy 2010”. These are “aspirational” and have been described as: “We must become a
premium brand with a global reach. We must be perceived as transparent, trustworthy, responsible
and responsive, driven by clearly defined values. We will be considered IT savvy, sophisticated, inno-
vative, efficient and associated with “Scandinavian cool.” And we never lose sight of our customers’
interests and needs”. Unfortunately, there is very limited awareness among employees across the or-
ganization on these values and even employees in the marketing department are not clear about them.
Brigitte Juel Christensen, Corporate Brand Manager, acknowledges this: We currently do not have a
clear direction for our brand; this has resulted in internal confusion. For example our Singapore of-
fice came up with its own approach for the communication of the brand, which was far from what we
want to represent. Unfortunately, the marketing department has been under a lot of stress and organ-
64 Rambøll engagement survey, appendix: 4.2

izational changes since the last summer when the marketing director left the company. We have spent
most time from august last year and still until now implementing a lot of new systems, which will
help us doing the KPI of the marketing department which is to generate leads for sales.
5.6 Stage 2: Brand Vision - Theoretical
Once the Analysis has taken place facilitating an overall understanding of the company, its environ-
ment, context and consumers. The brand vision stage takes place. The brand vision in short, can be a
statement that is simple to understand and can be easily communicated (Kotter, 1996). Without a
clear sense of direction in interpretation and communication a brand will flounder. A well, conceived
brand vision enables employees better to appreciate the journey they are undertaking (Chernatony,
2006). The brand vision relates to the overall brand framework as it directs the brand management
process within the outer brand policies and in connection with the analysis. The vision further de-
fines the brand frame by defining the playing field. Within these frames the branding strategy seeks
to lead the brand in the desired direction and optimize on opportunities within the framework. The
vision is about defining the playing field but more than that, since vision is future orientated it is
about defining a future direction of a “beacon”. That gives a common framework for everybody in
the company. It is much easier to talk about future things than present, because the present moment is
clouded with realities and conflicts (Richard Jones, 2007). Pine & Gilmore (1999) recognize its im-
portance as the foundation of any organisation’s energy and ambitions. It is about how a brand can
benefit it stakeholders over a long time horizon (Chernatony, 2006).
We believe that Chernatony´s vision model captures the most important elements that are central to
building a strong guidance and direction for the brand. In his model, the brand vision is constituted
by three elements: the envisioned future, the brand purpose and brand values. Figure 4 shows how
these three dimensions are related to the vision. The Envisioned future describes a projection of the
desired future environment, the purpose of the brand relates to how the world will be a better place
as a consequence of the brand and the brand values relate to the beliefs that guide the behaviour and
characteristics of the brand.
In the present section we will mostly follow Chernatony’s proposed model. Our main point of differ-
ence lies in that his process begins at the brand visioning stage and does not present an analysis sec-
tion until later, once the brand objectives have been defined. We believe that before being able to

build a strategic intent supported by brand vision, purpose, essence and values it is necessary to un-
derstand the context through carrying out the analysis (presented in the previous chapter). While we
recognize that in practice the process does not follow a strict system, we believe that the process flow
presented by Chernatony can be misleading. This is because in order to know “where a company
wants to go? (Vision)”, it is important to “Understand Where the company is? (Analysis)”. A second
point of difference with Chernatony’s process flow is that he does not present “brand essence” in the
brand vision stage of his process flow. Instead Chernatony looks into defining the brand essence at a
much later stage of the brand building process, after the more peripheral aspects have been deter-
mined. We argue that since the essence is the anchor of the brand, it is important to identify it as
early as possible in the brand building process. This argument is supported by Upshaw, (1995);
Aaker, (1996); Light (2006) etc. Consequently we have integrated the concept of the Brand essence
into the vision stage, illustrated in the following:
Figure 5.3 source: Adapted from de Chernatony (2006)
We will now briefly present each of the elements of brand vision. Explaining their meaning, consid-
erations and operation-ability.
5.6.1 Envisioned Future
“Imagining the future may be more important than analysing the past. I daresay companies today
are not resource-bound, they are imagination-bound” – C.K. Prahalad.
If a brand is to flourish, it needs not only to consider the present moment, but it is key that it is pre-
pared for the future and the changes it brings. One way of doing so is by envisioning the future envi-
ronment and how the brand wants it to evolve (Chernatony, 2006). A company can fulfill its strategic
intentions, not by competing for the future but by actively attaining that future (Pine & Gilmore,
1999). In order to do so a common understanding of the future, the challenges and opportunities it
brings is needed.

Before executing a brand vision program, some considerations need to take place related to its time
horizon. It should be long enough to avoid incremental thinking; however dynamic and fast evolving
markets like e.g. processors obviously need a shorter horizon than e.g. steel industry 65 in order to add
any value. Once this has been defined, there are several ways of executing brand vision programs.
We believe that brand vision should be initiated and directed by top management. However, integrat-
ing a cross-functional and company wide involvement of staff later in the process can offer several
distinct advantages. It can provide a much richer array of ideas, make staff aware of the challenges
and opportunities for the future and help employees better understand the resulting vision. Lastly, it
encourages commitment and provides stronger cultural bonds, if their ideas are taken seriously 66. As
this approach in practice can be very idealistic, the Hybrid Delphi Technique67 can represent a simple
and straight-forward way of executing this.
Example of Ford’s Envisioned Future: Mobility will be accessible to everyone68 .
5.6.2 Brand Purpose
The brand purpose is what justifies the existence of a brand to the world at large and motivates peo-
ple to attain a mission. Increasing shareholder value or making profit is not only the purpose of a
brand, but rather a prerequisite for its existence. This was clearly expressed long ago by Henry Ford
(quoted in Chernatony, 2006): “Business must be run at a profit…else will it die. But when anyone
tries to run a business solely for profit…then also the business must die for it has no longer a reason
for existence”69.
As part of the brand vision, the role of the brand purpose is to set the direction, which will enable the
crystallization of a brand essence and later on contribute to differentiate the brand. The brand pur-
pose is related to a company’s mission statement, as it should be accomplishable to some extent.
“How is the world going to be a better place as a consequence of the brand, and will this inspire and
guide staff?” Prahalad and Hammel (1995) observed that; “too many mission statements fail entirely
to impart any sense of mission. For this reason we prefer goals that are focused on making a real dif-
65 Chernatony, 2006
66 Chernatony, 2006
67 A consensus workshop that applies the ideology, through simple mail correspondence between survey responsible and
employees.
68 Larry Light, Arcature, 2006
69 Collins and Porras 1996, c.f. Chernatony, 2006
ference in the lives of customers”. This concept is central not only to setting the direction and exis-
tence of the brand but just as much to embrace passion and create meaning for the employees in the
long term.
Many methods and tools have been proposed to uncover or create a brand purpose. Collins and Por-
ras (1996) proposed the “five why questions”. The five whys method is a helpful stimulus for new
brands, as well as existing brands, when seeking ideas about motivating purposes. A question related
to the brand purpose is repeated five times in order to reach a meta-level where the answer to the
question is hidden.
Once a brand purpose has been identified or created, this should be tested to see if it sets an appro-
priate direction and motivates the people who will pursue it. Chernatony (2006) proposed a set of
questions, which should be answered to evaluate the brand purpose: 1. Will this purpose make a real
change and bring about a better world? 2. Does this excite staff? 3. Does it provide a clear sense of
direction for staff? 4. If staff won a major lottery, would they retire rich or would they continue to
work to bring about the brand purpose? While the fourth question seems a bit exaggerated, we be-
lieve that its underlying principle can prove an important way of testing the strength of the brand
purpose.
Apple brand mission/Purpose example:

Apple Mission: Our computers will transform the way people do things70.
Brand Purpose: Our computers will be the most user-friendly, most understandable, and most use-
able that they will empower the individual71.
5.6.3 Brand Essence
There are different views about the meaning of the brand essence concept and therefore different al-
ternative approaches (Chernatony, 2006). However there is a wide acceptance of understanding
brand essence as the central guiding promise of the brand identity which can enable internal com-
munication and encourage all staff inside the organization to pull in the same direction (Upshaw,
1995; Aaker, 1996; Light et. Al. 1999; Blackett and Boad, 1999; Van Auken, 2000; etc). The brand
essence is the core of the brands identity (Upshaw, 1995). It provides more focus than the brand

identity as this is captured in a single thought (Aaker, 2007). It’s a two- or three- word phrase that
captures the heart and soul of the brand (E.g. Disney: “Magic”, Visa: “Ubiquitous”, Marlboro: “In-
dependence”) (Van Auken, 2000).
In the present paper brand essence is understood as the centre of the brand, which defines its central
nature, enabling staff to have a clear representation of its uniqueness and to appreciate how they can
then contribute to delivering the brand promise. Furthermore its key role will be to define the centre
point of the brand framework by representing the intersection between: Brand Analysis (Self, com-
petitors, environment and consumer understanding/segmentation) with Brand Vision (Envisioned
Future, Purpose and Values) and Brand Promise (Brand Experience Configuration).
The brand essence should be identified or created following the purpose and it will guide the brand
personality, values, emotional rewards, and configuration of the offerings. Once the essence is ex-
posed it remains as the nerve centre of the brand. According to Light the McDonald’s “Forever
young” brand essence and the concept in general has an expiring time horizon of at least 50 years 72.
A way to operationalize the brand essence was presented by Interbrand (Blackett and Boad, 1999). In
this model “the blueprint model” the brand essence is presented as the distillation of the brand propo-
sition and values – the ultimate promise to the customer. In practice, the brand essence can be identi-
fied or created before or after the brand values have been identified or created. This will depend on
the development of the company and its origin. In some cases the brand essence can be based on the
history of the brand. This is because it can represent the communications connections that give a
brand a historical basis to strive for a leadership position (Macrae, 1996).
Light has developed an approach phrased the “Lotus Blossom” which proved valuable in the revital-
izing of McDonalds brand leading to the “I’m lovin´ it” campaign (A slogan created in Germany,
based in the brand essence: “Forever Young”).
In order to decipher the customers and employees perception of the brand and uncover the McDon-
alds brand essence. McDonalds employees (note that 1 out of 7 Americans work for McDonalds)
were asked to state the words they thought best described the brand essence. This was ultimately
boiled down to two words: “Forever Young”, which today acts as a compass for all McDonald’s ini-
tiatives. In this way it was also possible to motivate employees to pull in the same direction. Other
72 Light (2007)
methods to identify the brand essence have been presented such as P&G Brand Onion; which is
based in a similar principle.
5.6.4 Brand Values
The last component of the brand vision is the brand values. The brand values need to reinforce the
brand purpose (Chernatony, 2006) and be guided by the brand essence. In addition to this, values will
guide staff behaviour and will help a brand acquiring personality traits. A clear definition, in line
with this view was presented by Rokeach (1973)73: A value is an enduring belief that a specific mode
of conduct or end-state of existence is personally or socially preferable to an opposite or converse
mode of conduct or end-state of existence.
The brand values are important in relation to customers, as people buy brands whose values concur
with their own (Chernatony, 2006). By reflecting customers values the brand values provide a dis-
tinctive opportunity to create and reinforce brand loyalty (Ward, Light & Goldstine, 1999). In addi-
tion to this, brand values can help to attract potential employees as people increasingly seek to work
for companies that share their values. Consequently, there must be an alignment of company values,
employee values and customer values. The values of the brand and the employees do however not
have to be the same, but they must be close enough so that they can coexist. Otherwise will the em-
ployee be frustrated and not produce results (Drucker, 1999). Richard Branson, founder of Virgin
explains: “We give top priority to the interest of our staff; second priority to those of our customers;
third to our shareholders74. Branson’s argument in line with e.g. Doyle (2004), Drucker (1999), etc,
is that if employees are committed to the values of the brand, then their enthusiasm and motivation
should delight the target market and ultimately benefit the shareholders. It is however not uncommon
for staff in the same organization to have different understandings about the values of their brand and
be pulling in different directions (Chernatony, 2006). To encourage greater integration between a
brand’s values and employees values, it is not only important to recruit staff whose values concur
with the brand’s values; there also needs to be a continual reinforcement of the brand’s values. This
can occur during the induction process, the performance assessment process, and training, and in re-
wards and activities (this will be further discussed in stage 4).
In order to communicate the way, in which a brand differs from its competitors, it needs to be crystal
clear on its values. Having a clear set of values provides guidelines about how to develop a brand for
73 c.f. Chernatony, 2006

74 Macrae, 1996
the benefit of its customers (Chernatony, 2006). A way of uncovering the brand values among many
others is through the use of the laddering technique developed by Reynolds and Gutman (1988). In
short, in this technique a facilitator works on an individual basis with members of the brand team to
identify their views about the key attributes of the brand, what the consequences of these attributes
are and what personal values are being reinforced. One of the most important issues when conceiving
a brand’s values is to ensure that they are not the generic values of the category within which the
brand competes (Aaker, 1996; Chernatony, 2001-2006; Light, 2006; etc). Another generally accepted
principle is that the number of core values represented by a brand should be a low number usually up
to five.
Brand values are also important in relation to the design of an experience as explained in the follow-
ing stage 3. This is because they constitute the 4th level of the brand pyramid and are part of the
brands overall identity. Furthermore, they will guide the design and configuration of an offering, by
acting as the connection with the personality, brand essence and overall brand framework. For exam-
ple, Richard Branson’s rule for Virgin (quoted in Chernatony, 2006) is that at least four of the five
Virgin values should be applicable if a new market (offering) should be under investigation. While
we will not go into brand extensions in the present paper, this method will guide the design of expe-
riences for different target groups.

5.7 Stage 2: Saxo Bank’s Brand Vision
Saxo Bank has done an important work in formulating and communicating its vision. This has been
initiated by top management and communicated to employees and stake-holders through booklets,
brochures, articles and videos.
5.7.1 Envisioned Future
In the “strategy 2010 – the road ahead” Saxo Bank invites the readers to imagine the future by step-
ping into a time warp and projecting the existence of the company and the market. The time horizon
set in this brochure is only of three years, which we consider appropriate in relation to the dynamics
of the industry in which Saxo Bank operates and to its lifetime (15 years in September 2007). Saxo
pictures its future customers as: internationally oriented, affluent, above average in sophistication
and confident we can help them become successful. They increasingly identify with our values,
branding and positioning.
In order to serve its customers, Saxo envisions its future presence as becoming truly global: By
2010… We will have regional hubs across all time zones (Copenhagen, New York, Singapore) and
satellite offices scattered across the globe –serving clients out of locations such as Marbella, Lon-
don, Zürich, Dubai, Moscow, Sydney, San Francisco or even Sao Paolo. When turning from the
physical presence into the inside of the company, they also present a clear picture of the future of the
human resources and organisational values: Saxonians will live, preach and practice the values and
rules of engagement in our corporate statement”.
Saxo Bank also stresses the importance of continuous development of their staff: We strive to con-
tinue and supplement our education and personal development and want to extend this throughout its
management style: We are a flat organisation in which leaders act as teachers, coaches and mentors,
empowering and growing our human capital to reach its apex. The ultimate goal of this envisioned
future is to one day reach the corporate vision: To be the worlds most profitable and professional fa-
cilitator in the global capital markets. We believe that this mission or goal is simple to understand
and does define the playing field as a facilitator in the global capital markets.
5.7.2 Saxo Bank’s Brand Purpose

Nevertheless the presented vision and corporate statement does not enable employees to better ap-
preciate the journey and does not indicate how this can benefit stakeholders other than individual de-
velopment, positive relationships, good service and profit. Saxo Bank claims that shareholders will
benefit from superior, consistent returns; Clients and Partners from good relationships, exceeding
expectations, superior service, respectful treatment, etc; and Employees will benefit from being mo-
tivated to excel in their careers and personal goals. While the prerequisite for a business to exist is
profit and the ultimate goal of a brand management process it to aim at maximizing shareholder
value.
A brand purpose should be formulated as this can justify the existence of a brand to the world at
large and can set goals that can be accomplishable to some extent. We have been analyzing a possible
implicit purpose within Saxo Bank’s published material and have identified “Providing the forum
where trading ideas and capital merge” as a potential implicit purpose (found in Saxo Bank perspec-
tives brochure) 75.
The lack of an explicit purpose presents Saxo Bank with an opportunity to establish it, motivate staff,
and align it with the processes that can maximize shareholder value. The purpose should be commu-
nicated and encouraged internally as well as externally. Internally in a similar way as the employee
values have been presented. This can create a mutual reinforcing effect, adding meaning and a pur-
pose to the values.
5.7.3 Saxo Bank’s Brand Essence
Once the brand purpose is established a crisp two to three word brand essence should be identified
and made explicit. The brand essence will better guide the Saxo Bank brand by defining its center in
a longer time horizon. This will be important to maintain consistency through Saxo Banks aggressive
growth. We have not been able to identify Saxo Bank’s brand essence. In contrast, a widely recog-
nized and popular tagline is: Serious Trading Worldwide. While we believe that this tagline has been
successful and relevant for today’s context, a deeper, meta-level essence with a longer time horizon
and without including concrete words such as “trading” can benefit Saxo Bank’s brand by facilitating
the creation of a consistent brand framework.
5.7.4 Saxo Bank’s Brand Values
As introduced in the brand self-analysis, the employee values are expressed and lived out very
strongly in the daily operations of Saxo Bank. However, the brand values were only vaguely pre-
sented in a paragraph within the “Strategy 2010”. They have not been aligned to a brand identity as
75 ”Saxo Bank Annual Report (Perspectives)” Appendix 4.1

there is currently no Saxo Bank brand identity 76. In order to create a strong brand, the brand-values
play an important aspect. Hence this should be clearly defined and communicated to everyone in the
organization. This should be universal enough so that they can relate to consumer values in all poten-
tial markets, they should be preferably no more than five, and should not be industry generic (e.g. not
innovation, quality, etc…). The brand values should relate to the already established employee values
and should guide the way in which Saxo Bank’s purpose and essence can be operationalized into its
offerings. This stage will be presented in the Brand Pyramid, which we will present in the following
stage: Experience Design.
76 According to our definition of a brand and further supported by Birgitte Juel, Inverview Appendix 3.10
5.8 Stage 3: The Design of Experiences - Theoretical
Following the Analysis stage and the Vision stage; the brand essence in the present stage, will work
as the integrating factor between the first three stages of the brand management process. The brand
essence should be informed by the analysis (consumer segmentation), should encapsulate the vision
(Company’s future direction and purpose) and should now be synthesized into the brand promise to
be delivered through the company’s offerings. By distilling the brand promise of value to its essence
it is possible to determine what the company’s various functions must do to make it possible (Light,
Goldstine and Ward; 1999). This concept has recently been successfully operationalized in practice
by a few companies. An example is represented by P&G. According to Lafley their CEO, their trian-
gle of success is based on strategy, core capability, and leadership as the heart of the company's abil-
ity to "deliver consistently strong results."77 To match the external environment, a firm must have
good internal fit (Itami 1987). This stage is concerned on creating this internal-external strategic fit
by forming the bundle of resources into the brand identity and delivering it externally as an “Experi-
ence”.
We have from the very beginning of this project praised the importance of experiences, but what do
they consist of? and how are they designed? This section serves to answer these questions and ulti-
mately come up with an approach to operationalize the concept in practice. Here is where rational
analysis works together with the creative functions to design a promise of a relevant and differenti-
ated experience consistent with the brand vision.
The key difference between products, services and experiences is that an experience has the charac-
teristic of being memorable. However being memorable it is not enough as an experience should also
be relevant and differentiated. In order to design such experiences, these need to be created in a con-
stant dialogue between the consumer, strategic understanding and creative functions to aim at creat-
ing a differential advantage. While following Doyle (2001), we recognize the importance of the sup-
ply chain management process in acquiring inputs and efficiently transforming them into effective
offerings. We believe that this function cannot be managed in a specific stage of the brand manage-
ment process but rather it is a function, which should work cross-functionally and constantly in-
formed by the other value creating capabilities through out the process. Our focus instead will be on
the core business processes which have to work together to continuously operationalize the brand
77 Harvard Business School awards for Alumni Achievement 2004, A.G. Lafley HBS MBA 1977
essence into the offerings of a company by synthesizing it into a unique configuration of features,
functions, emotional rewards, values and personality traits (Light, Goldstine and Ward, 1999; Cher-
natony, 2001). To effectively fit the environment, a person must live within his physical and psycho-
logical limits. The company’s resource levels and organizational climate limit its adaptiveness, much
as a person’s physical and mental limits restrict his ability to fit the environment (Itami, 1987). Re-
source fit can be approached by focusing on relationships, within the strategy elements, evaluating
various mixes of these elements to find the mix that effectively uses and efficiently produces the
necessary identity (Itami, 1987).
The strategy content must fit the firm’s psychological features and available resources and at the
same time be able to mobilize the organization (Itami, 1987). The present stage “Design of Experi-
ences” is the heart of the process and it represents the balance between freedom and strategic frame-
works. It represents the synthesis of cross-functional capabilities into an offering. It is the integration
between normative models and a social construction approach to brand management. It should allow
for the integration of insights and other invisible assets generated through consumer interaction and
dialogue into the process (Itami, 1987). It should set the direction of the creative and design func-
tions, which will help in communicating and delivering the identified solutions. It is here where
product development can create innovative solutions to customers problems (Doyle, 2001) and mar-
keting should identify customers, understand their needs, build relationships and help editing and
shaping the perceptions of the organization and its brands (Doyle, 2001; Light, 2007). The marketer
of the new millennium will need to be a combination of historian: able to analyze huge amounts of
data and make nontraditional connections; ethnographer: able to observe and understand the subtle-
ties and complexities of culture; and journalist: able to create, edit and tell meaningful stories to
which people can react and take action from (Antonio Lucio, SVP Pepsico International, June
2007)78.
Design in this stage should be understood as the creation of a functional and sensory interface be-
tween an organization's offering and its customers. In the words of Steve Jobs founder and CEO of
Apple, "design is not just what it looks like and feels like, design is how a product or service works,
it is the fundamental soul of a man-made creation". Tom Peters, “management guru”, supports this
view by arguing that most people consider design a surface thing, a "prettifying" thing, an after-the-
78 AntonioLucio SVP Pepsico International American Marketing Association speech June, 2007 referring to Light’s ar-
gument see Interview Appendix 3.14
fact cosmetic-makeover thing. However, in companies such as Apple, Sony and Nokia it is the an-
tithesis of all that.
According to Shaw & Ivens (2002) the customer experience is a blend of a company’s physical per-
formance and the emotions evoked, intuitively measured against customer expectations across all
moments of contact. Shaw and Ivens raise an important issue, by underlining that the customer expe-
rience must at least meet the customers expectations and in order to craft loyalty the experience has
to exceed the expectations. In that sense its important to stress the point that customer experiences
are not always positive, but individually evaluated relative to the customers experiences.
As customer experiences are essential to brand building, Larry Light (1999) has developed a tool for
building powerful brands: the Brand Pyramid, where the design of experiences is a fundamental
mean to reach that goal. We recognize that there are many other relevant brand identity models as
presented in chapter 4. However we have grounded the brand pyramid model on the resource base
view of the firm and we find it highly applicable to the present case study. The tool applies to FMCG
as well as high-tech companies and consists of five levels: Features, Functions, Emotional Rewards,
Values and Personality, being Features the base and Personality the top level. Chernatony has in his
latest book “From brand vision to brand evaluation” (2006) recognized the value of Light’s approach
as it enables the core promise of the brand to be characterized in a systematic way. However, the first
step in this direction was, taken by Kapferer (1992) and his “Brand Identity Prism”. Later Aaker
(1996) presented the “Brand Identity System”. Both pointed at the importance of leveraging benefits
and emotional rewards into the identity of the brand.
Following the resource base view of the firm as presented by Barney (1991) and supported by Itami’s
(1987) invisible assets; in chapter 4 we have presented the base and link between a brand identity
system and the resources of the firm. Following in chapter 4.4 Brands as innovative resource bun-
dles, we presented proposition 2: A Financial Service industry can create brand experiences
based on a bundle of tangible and intangible resources encompassed by an identity.: It is follow-
ing this understanding where we believe that the bundle of resources encompassed by a brand have
to be designed and delivered through the required identity to create the necessary meaning, responses
and relationships. It is here where the concept of invisible assets links the resource base view of the
firm with the brand identity models. The invisible assets will contribute to designing and delivering
the right meanings by gathering the insights from the environment, combining them internally to

form an identity and delivering as meanings and perceptions externally to form an experience with
specific responses that can ultimately result in a relationship.
Its our belief that the Brand Pyramid developed by Larry Light is an appropriate brand identity
framework that can be applied to the present case. This is because it has been developed from practi-
cal experience and it represents the most dynamic and up to date tool as it captures the necessity of
local adaptation while keeping consistency throughout the brand. The top two levels of the brand
pyramid are “Personality” and “Values”. Those are the levels that must be consistent across the
whole brand framework. Brands cannot have multiple personalities and multiple values or they can
become schizophrenic (Light, 2007). Instead the remaining lower three levels: “Features”, “Func-
tion” and “Emotional Rewards” change for every segment in order to adapt to different segments or
markets while remaining a consistent brand identity. These levels also allow for creative flexibility in
line with strategic understanding.
Figure 5.4 source: based on Ward, Light and Goldstine (1999)
The logic of the Brand Pyramid is as follows. When managers device a new brand, or product they
are initially concerned with the delivering of unique features. However consumers are less concerned
with features (e.g. a multifunction remote controller for a video recorder) and more attentive to the
benefits gained from these features (e.g. ease of recording a TV programme)(Chernatony, 2006). As
managers come to understand this, they change the way they speak about their offerings. Instead of
selling products they sell “solutions” and “benefits” (Ward, Light & Goldstine, 1999).
As the two first levels: Features and Functional benefits relate to the functionality of an offering, ex-
periences and emotions are central to the third level of the pyramid. With experience, consumers be-
gin to understand the brand better and lead to emotional rewards (Chernatony, 2006). The third level
of the pyramid is where the company can truly differentiate itself from competitors by providing
emotional rewards for its business (Light, 2007). How do customers feel when experiencing the
functional benefits of the offering? Do they feel confident? Successful? Responsible? Innovative?
Following the example of the remote controller the emotional reward could for instance be “comfort-
ability” when zapping and recording programs from the couch.
The emotion the consumer receives through the experiences leads to the fourth level of the pyramid:
Value. “We are particular interested in reflecting values of the target customer that will create and
reinforce brand loyalty” (Ward, Light & Goldstine, 1999). As mentioned earlier customers are in-
creasingly buying from companies who share their values. The emotional reward of “comfort” could
lead to the value “Empowerment” which could be a reason for the customer to buy the remote con-
troller. At the top level of the pyramid is the personality of the brand. It’s the characteristics the brand
would have if it had human qualities like; warm, caring, friendly, aggressive, etc. The two top levels
of the pyramid define the relevant and differentiated character of the brand (Ward, Light & Gold-
stine, 1999). Going from the emotional value of “comfort” to the value of “empowerment” the per-
sonality of the brand in the example could very well be “successful and easy living”.
Where Lights´ Brand Pyramid greatly differs from existing models is by the rotation of the lower
three levels. Not only does it allow for a significantly more dynamic brand “positioning” or “edited
communications to socially construct meaning”, it also allows for adaptation to local needs. This
framework can then be used to incorporate a global strategy with local execution. While the top two
levels remain the same or evolve less rapidly to ensure consistency, the lower three levels constantly
change to meet the specific consumer needs, psychological and emotional rewards.

Figure 5.5 source: Adapted from interview Larry Light (2007) San Francisco Appendix 3.1
Larry Light used this model at Mc Donald’s when he was appointed as the first ever Chief Marketing
Officer: “You need to have consistent “Personality” and “Values”, which we reduced into the es-
sence and summarized in two words: “forever young” this was translated into today’s context
through the slogan “Im lovin’ it”. Its operationalization meant that during breakfast the functions,
features and rewards had to be different than for young adults at lunch and that had to be again dif-
ferent for mom who is more concerned about the nutritional values”. (Larry Light)
By changing the “Functions”, “Features” and “Rewards” you are able to adapt each offering to a cer-
tain segment, while keeping the same “Personality” and “Values” secures the brand consistency and
allows for a much more dynamic “positioning” or interpretation.
It is evident that the positioning of the brand becomes less stiff as opposed to traditional positioning.
The adaptation of the lower levels towards local markets and segments is largely enhanced by the
freedom within the framework. In the case of Mc Donalds, Light constructed the framework consist-
ing of the two top levels of the pyramid: “forever young” (the brand essence), “I’m lovin’ it” the
campaign slogan, certain nutritional and legal rules, logo, sound: “da ba da ba daaaaa”, etc. Within

that framework each local region were given the freedom to create a mix of the lower levels that ap-
plied to the local segments they were serving.
Based on thorough customer understanding through daily interaction, market research and ethno-
graphic techniques, experiences are designed as a mix of all five levels of the Brand Pyramid. By
only changing the lower three levels, the customer experience changes within the framework and can
consequently be adapted each segment. The creation of great and welcomed customer experience is
vital as it is a source of long-term competitive advantage (Shaw & Ivens, 2002).
Design plays an important role in the creation of relevant and differentiated customer experiences.
This notion has proven to be very successful for Steve Jobs –not only through the design of products
like Ipod, MacBook, etc, but also through designed experiences like for instance when you walk into
an Apple store, you walk into an Apple experience. I simply believe that design – per se – is the prin-
cipal reason for emotional attachment (or detachment) relative to a product or service or experience.
Design, as I see it, is arguably the No. 1 determinant whether a product-service-experience stands
out-or does not. (Tom Peters).
Pepsi has also adapted to allow for a more flexible creative and genuinely consumer insights focused
design of experiences. As recently illustrated by Antonio Lucio Senior Vice-president Chief Innova-
tion and Health Wellness officer in the AMA marketing strategy forum: “To drive innovation, step
change the Health & Wellness agenda and working through world-class partners, we are focusing on
maintaining "innovation republics". “This means separated structures within existing business – pro-
tected and nurtured by an aspirational leader: with an outward orientation for development, a great
set of external partners, and measuring progress through a different type of matrix.
PepsiCo is a Jeffersonian company – a confederation of independent states held together by a vision
and a strong CEO.” 79
The Brand Pyramid, can serve as a powerful tool in coordinating configuring and guiding the design
of customer experiences. Through the preceding theoretical framework we have developed the foun-
dation to the brand management process in which the Brand Pyramid is a fundamental part. The fol-
lowing stage will present some key managerial and human resources considerations when operation-
alizing the brand framework and pyramid. We will enhance the brand pyramid as presented by Light
79 Antonio Lucio SVP Pepsico International American Marketing Association speech June, 2007 Appendix 3.14
(1999) with the “Experience Realms” developed by Pine & Gilmore (1999) as these two frameworks
can complement each other. When the Brand Pyramid can guide the configuration of the experience,
“the Experience Realms” define the type of the experience and can enhance cross-functional under-
standing and focus in its delivery.
Figure 5.6 source: Pine and Gilmore (1999)
Pine and Gilmore (1999), constructed the Experience Realms80, in order to operationalize the design
of experiences, by classifying the experiential offering into four main groups. They suggest that by
using the Experience Realms companies can guide a set of prompts that help to creatively explore the
aspects of each realm that might enhance the particular experience a company wishes to stage (See
Experience Realms Figure 6). We will incorporate this classification as a guiding framework only, as
we believe that it does not cover the complete spectrum of possible experiences and to avoid the
limitation of spontaneous creativity.
The two dimensions presented in the Experience Realms framework go from passive participation to
active participation and from guest absorption to guest immersion. These two axis´ divide the
framework into following four groups in which an experience can be categorized; Entertainment,
Educational, Escapist and Esthetic. Entertainment is defined by the Oxford English Dictionary as
“the action of occupying a person’s attention agreeably; amusement.” The kind of experiences most
people think of as entertainment occurs when they passively absorb the experiences through their
80 Pine and Gilmore (1999) Page 30, “The Experience Economy”.

senses, as generally occurs when viewing a performance, listening to music, or reading for pleasure.
As with entertainment experiences, with education experiences the guest absorbs the events unfold-
ing before him. Unlike entertainment, however, education involves the active participation of the in-
dividual. To truly inform a person and increase his knowledge and/or skills, educational events must
actively engage the mind and/or body. The term “edutainment” was coined to connote an experience
straddling the realms of education and entertainment (Pine and Gilmore, 1999, pg., 32). Escapist ex-
periences involve much greater immersion than entertainment or education experiences. In fact, they
are the polar opposite of pure entertainment experiences. The guest of the escapist experience is
completely immersed in it, an actively involved participant. The final category of the Experience
Realms is Escapist Experiences, where individuals immerse themselves in an event or environment,
have little or no effect on it, leaving the environment essentially untouched.
We argue that this classification together with the brand pyramid can prove valuable as it can help
managers, creative people and other stakeholders to focus efforts when designing and delivering ex-
periences.

5.9 Stage 3: Saxo Bank’s Brand Experience Design
As presented in the Vision Stage it is necessary for Saxo Bank to clearly establish and communicate
brand policies, a brand purpose, an essence and brand values. This is important because the organiza-
tional changes recently announced (August, 2007) by Saxo Bank’s top management should be ac-
companied by changes in the process flow, cross-functional cooperation and a stronger emphasis on
the creation and delivery of relevant and differentiated experiences (referred by CCO Rabbe Ekholm
as “costumer solutions” a more common managerial term). For these initiatives to be successful a
crisp brand framework should be in place. The missing elements of the brand vision together with
the already established envisioned future and employee values can help defining the two top levels of
Saxo Bank’s pyramid namely its personality and brand values. Following, through the rotation of the
lower three levels of the pyramid, Saxo Bank will be able to construct a regional approach with a
better costumer understanding and will better suit the specific needs, wants and behaviour uncovered
by the market cube, ethnographic techniques and other points of interaction with costumers. Finally,
through the experience realm Saxo Bank will be able to focus and guide the creation and delivery of
relevant and differentiated experiences.
It is evident that one of the key objectives of the structural changes presented by CCO Rabbe Ek-
holm in the third edition of “A view from the top – August, 200781” is to better target regions and to
integrate the value adding processes to emphasize the delivery of costumer solutions. This initiative
is very much in line with the philosophy of the present brand management process. This is because
by using the brand pyramid model Saxo Bank can encourage a global strategy with local execution.
Furthermore, the brand pyramid should be cross-functionally created through a process flow, which
integrates different departments such as product development, marketing and design.
In the case of Saxo Bank, we have identified Global Solutions (supported by Financial understanding
and IT); Marketing (supported by research, quantitative analysis and design (graphic, 3D and web))
and Sales Operations (supported by Account Management, Financial Advisors and Sales) as the three
key value creating processes which should work closely together in designing and delivering relevant
and differentiated consumer experiences.
81 A monthly video broadcast with the senior executive team discussing relevant corporate issues
Figure 5.7 Adapted from interview Larry Light (2007) San Francisco Appendix 3.1
When aiming at creating a differential advantage it is imperative that Saxo Bank aligns the value cre-
ating functions to manage its different costumer touch-points to deliver the required experiences.
Saxo Bank has currently six touch-points in which they can engage potential customer counting: the
physical presence, marketing activity (above and below the line advertising, etc), the sales-team
(guerrilla marketing, direct sales, etc), the Expo-team, through seminars (PR/Opinion leaders, etc)
and the website (media dialogue, online forums, blogs, etc).
A clear workflow, which allows for cross-functional cooperation from an early stage, is needed in
order to coordinate Saxo Banks touch-points to continuously deliver consistent solutions. The chal-
lenge now is to construct workshops and cross-functional cooperation opportunities that stimulate
creativity within the given boundaries, aiming at designing the experiences. While doing that the ex-
isting and potential new touch-points must be considered as they have to be part of the experience
rather than just a distribution channel to deliver them. They serve as the stage where the experience
is unfolding.
For example cooperation between designers, the expo team and marketing managers can result in
better targeted communications with first hand insights from the expo team. While cooperation be-
tween global solutions consultants, guerrilla marketing sales people and designers can result in the
development of offerings, which exceed costumer expectations.
However this creative and strategic cross-functional cooperation should be guided to aim at maxi-
mizing shareholder value. Hence, we shall now turn to how Saxo Bank can design experiences that
are welcomed by customers, based on the analysis-stage, and how to align the experiences with the
brand identity, based on the vision-stage. This can be done, by utilizing the Brand Pyramid and the
Experience Realm to support and coordinate the brand touch-points.
Saxo Bank operates on different markets and segments that obviously have different needs. For in-
stance, while the UK market greatly differs from the United Arabic Emirates (UAE), this also differs
from the Danish. However, today each of these markets is served in an equal basis. This is explicitly
stated in the “Private Clients” section of the overall positioning of the Saxo Bank Brand82 : The goal
is to become the preferred on-line multi-product trading platform for the internationally-oriented
private investor and trader.
A key to serve regional and local varying needs and keep consistency throughout the delivery of the
brand promise is the use of the Brand Pyramid. The top two levels “Personality” and “Values” will
have been determined in the vision-stage and will remain the same on every market, whereas the
lower levels must adapt to the local needs. The customization of the lower levels to local needs can
be formulated by local Saxo managers and aligned with headquarters objectives. These levels should
then be rotated and adapted periodically depending on the speed of the local market evolution (e.g.
annually, every 6 months, quarterly, etc).
Following, through the analysis-stage Saxo Bank will have identified the profitable segments and
corresponding needs it wish to cater to. While some aspects in the lower levels can be customized to
many markets. In order to optimize resources we recognize that Saxo Bank should only aim at fully
customizing the design of the pyramid to a limited number of target customers (e.g. 3-4).
82 Saxo Bank Strategy 2010 booklet (2007) pg. 11

Figure 5.7 source: adapted from interview Larry Light (2007) San Francisco Appendix 3.1
We will now present an example of how this can be applied in practice. Our examples will illustrate
the case for the UK, Denmark, and the UAE (United Arabic Emirates). The UK is a very mature
market in terms of trading and the customers are sophisticated traders who trade a broad variety of
products including CFDs83. Consequently this market, have very different needs and expectations
compared to the Danish market, which is very conservative and mainly trade stocks and bonds, and
very little FX and CFDs. Again these needs vary from those of the UAE (United Arabic Emirates)
market where the Islamic religion influences the behavior and needs of costumers by for instance
prohibiting the charging of interest84. Please look at the following example, which we have con-
structed together with an Expo Team member to better illustrate the applicability of the pyramid then
targeting an extreme example: “The Danish Farmers”.
Figure 5.8 source: constructed with a representative of Saxo Bank’s expo team, based on Brand Pyramid Light (1999)
83 According to UK-market analysis Saxo Bank internal document (2007) due to confidentiality not in Appendix
84 Market analysis: UAE internal document Saxo Bank (2007) due to confidentiality it is not enclosed in the Appendix
The market-specific needs in terms of “Features” and “Functional Benefits” are determined through
the analysis and represent the two lower levels of the pyramid. These are the basic functionalities
each segment needs and want. As the trader in UK seeks an “emotional reward” which could be re-
lated to a high level of sophistication and excitement from engaging in the trading experience, the
trader in Denmark most likely pursue another type of “emotional reward”. These are the underlying
drivers for the trader to choose a specific offering, whether the trader is conscious about them or not.
Once the Market Cube have revealed the specific country needs and segments and these have been
configured into the brand pyramid, the Experience Realms guides its construction according to the
two behavioural factors; “Participation” and “Immersion/Absorption”. For example, assuming that
the “professional” trader across all countries have a high degree of “participation” and is “absorbed”
to some extent and also “immersed” in the trading activity; he will according to the Experience
Realm seek an “escapist-educational” experience. This is because he will be both an “actor able to
affect the actual performance” in the experience but at the same time he would generally keep learn-
ing about new product launches and possibilities such as the “trade commander”. Given the hypothe-
sis of this trader’s behavior is right, this would mean that the “UK-professional” segment needs so-
phisticated functions and features while at the same time receive an educational experience related to
sophisticated products which can deliver the right “emotional rewards”.
If on the other hand looking at the “Gambler” segment in general, it is more likely that the trader is
less “actively participating” but still “absorbed” to some extent. This results, according to the Expe-
rience Realm in a segment that seeks experiences closer to the “edutainment” type. Elaborating on
the example of the “UK-Professional” segment when applied to the pyramid; this would mean that as
the “Features” offered could be advanced research and strategy-proposals related to product offer-
ings. The “Functional Benefits” could could then be the ability of automating trades through the use
of the Trade-commander85. This leads to the third level, the Emotional Rewards, which drives the
segment. This could very well be; “to feel excited, intellectual and sophisticated when utilizing ad-
vanced trading methods with success”. These three levels of the Brand Pyramid and the categoriza-
tion of the experience through the Experience Realm provides a clearly defined set of boundaries in
which the innovation and design of the experiences can take place. This is the essence of “Freedom
within a framework”. Another important aspect which Saxo should consider when designing the ex-
periences is the engagement of the six senses; sight, smell, hear, touch, taste and the sixth being the
85 Advanced trading strategy tool.

“mind”, capturing the essence of the five others 86. Research has shown that the more senses an expe-
rience is able to engage, the greater impression it leaves and the more memorable it will be87 . Obvi-
ously the nature of the touch-points determines the combination of senses that are possible to engage.
However as technology keeps moving the boundaries of what is possible the workshop should not be
constrained by what technology allows today as it might allow otherwise tomorrow.
86 According to definition and Light, 2007.

87 Pine & Gilmore, 1999.
5.10 Stage 4: Operationalization - Theoretical
Branding is about people... as the people inside the organization, through their assumptions, commu-
nications and actions determine service delivery, product innovation, communication and customer
relationships (Ind & Bjerke, 2007). Thus to operationalize the brand and its designed experience of-
ferings, the people of the company are the “no. 1” critical success factor. Consequently, internally
brand management is becoming culture and knowledge management, whereas externally it is cus-
tomer interface or touch-point management.
The Brand Pyramid enlightened the importance of values as key components of a strong brand and
consistent communication. These brand values need to be aligned with the values of the people in
organization who stage the experiences, otherwise success will not be attainable, as it is noted by
Steve Jobs, CEO of Apple: “The only thing that works is management by values. Find people who
are competent and really bright, but more importantly people who care about the same things you
care about”
The HR director should therefore be a key member of the brand’s team, since he or she devices pol-
icy that impacts on brand building. Ind & Bjerke (2007) accentuate the role of knowledge manage-
ment as people in the modern organization contribute more than pure productive power. Rather it is
their contribution towards the intellectual capital of the organization that matters. Crucial is the need
to attract, retain and motivate the “knowledge workers” whose specialist skills and efforts determine
the firm’s ultimate competitiveness (Drucker, 1999).
The link between knowledge and competitive advantage has been debated, having on one side those
who establish a positive link between these constructs (Fiol and Lyles, 1985:803, Barney, 1991)88,
and those who do not see a direct relationship between learning, knowledge, and performance. How-
ever, recent empirical efforts have found support for the direct impact of learning, knowledge, and
human and social capital on performance (e.g., Appleyard, 1996; Bontis et al., 2002 Decarolis and
Deeds, 1999; Hitt et al., 2001; Yeoh and Roth, 1999)89. It is important to note that the conclusion of
these studies is not that “the more learning the better” or “the more knowledge the better”, but that
learning that is effective, and that knowledge that is relevant may have positive effects on
88The Blackwell Handbook of Organizational Learning and Knowledge Management, Vera and Crossan, Edited by Mark
Easterby-Smith and Marjorie A. Lyles, Blackwell Publishing, 2003, p.133
89 c.f. IBID
performance. 90
We argue that social capital and absorptive capacity are two key knowledge management concepts,
which will aid in the operationalization of the encountered target group insights and needs to deliver
a brand experience. According to Cohen & Levinthal (1990), Absorptive capacity is the ability of the
firm to recognize the value of new, external information, assimilate it, and apply it to commercial
ends. Cohen and Levinthal (1990) related absorptive capacity to organizational outcomes such as in-
novative capabilities and innovative performance. Furthermore Cohen and Levinthal (1990) suggest
that the higher the level of absorptive capacity, the more likely a firm will be proactive in exploiting
opportunities present in the environment, independent of current performance. Therefore absorptive
capacity will not only be a key element in the process of scouting and operationalizing innovations,
but equally important when identifying new trends or understanding the commercial value of tomor-
rows disruptive innovations.
The second knowledge management concept, which will improve the dynamics and strength of the
brand is “social capital”. Social capital theory maintains that actors should be linked as much as pos-
sible, to increase their social capital, which is defined as the set of social resources embedded in rela-
tionships (Van Wijk, Van Den Bosch and Volberda 2003). Tsai and Ghoshal (1998) found that social
capital contributes to value creation, as measured by product development performance. Tsai and
Ghosal (1998) further found that social capital increased knowledge and resource combinations, and
value creation. Finally absorptive capacity, through the new use of knowledge, reinforces social capi-
tal by adding to the sum of resources created by the network and through that strengthening the ties
within that network through the shared experience of knowledge creation (Alvarado, Hempel and
Zimberi, 2005).
In line with these findings Richard Jones (2005), recognized the importance of integrating concepts
such as social capital and employee or intellectual capital to a broader stakeholder based brand eq-
uity approach. Thus, we argue that as much communication and integration available between the
stake-holders involved in the design and innovation of experiences (Designers, Consumers, Market-
ers, Agencies and Manufacturers), the more valuable and effective will be the design of experiences
and subsequent operationalization.
90 c.f. IBID
Since brand management both defines an externally centered promise and considers how staff inside
the organization can be orchestrated to ensure vibrant commitment to delivering the promise (Cher-
natony, 2006), we believe that both Absorptive Capacity and Social Capital are two key brand driv-
ers. It has been argued that determinants of our encountered brand drivers (Absorptive Capacity and
Social Capital) are related to empowering motivation, ability, alignment and opportunities within the
organization (Minbaeva et. al 2003). These two concepts have also been related to the innovation
field as capabilities, which can help identifying market insights and intelligence to integrate them
into the value adding processes and exploit them commercially (Alvarado and Kolenda, 2005).
Knowledge in an organization is obviously a crucial element, but human resources has to implement
the necessary systems related to staffing91 , training92 , appraisal systems93, incentives94, job security
and collaborative work95, corporate socialization mechanisms96, and career management and devel-
opment 97 to achieve higher outcomes.
Forward-thinking, successful corporations are harnessing knowledge competencies, plus organiza-

tional culture (Chernatony, 2006). But in order for absorptive capacity and social capital to provide
value, these have to be in line internally with the value adding processes of the organization by hav-
ing the right intercultural communication channels and by basing them on a clear vision and strategic
direction (Alvardo, Hempel and Zimberi 2005).
To capture the essence of the above concepts and employ them in practice we turn to the “FACE”
model developed and utilized by Light. It is called FACE because the people of an organization are
the face of the brand, especially in a service business. Nothing communicates better, no add, no pro-
motion as powerful as a human interaction. FACE stands for Focus, Alignment, Creativity & Excel-
lence. To achieve face you first need to achieve Focus, which is defined by the brand framework.
Second you need to get the organization Aligned behind that focus. Focus as such is useless if the
people behind are not committed and motivated (aligned). The third important step is to inspire Crea-
91 see Minbaeva, 2005 and Angelos Alexopoulos and Kathy Monks, 2004
92 IBID
93 IBID
94 IBID
95 see Angelos Alexopoulos and Kathy Monks, 2004
96 IBID
97 see Minbaeva, 2005 and Angelos Alexopoulos and Kathy Monks, 2004
tivity instead of limiting it. “Often the problem with a lot of brand internal marketing is that they cre-
ate focus and alignment that results in stifling creativity” Light, 2007. The last and fourth element is
Excellence. In today’s competitive markets a company cannot afford to excel in only a couple of ar-
eas within the value chain but needs to seek excellence within every area.
Figure 5.9 source: adapted from Interview Larry Light (2007) Appendix 3.1 and Minbaeva (2005)
Since FACE is the objective we need a mean to reach that. That process is likewise a four-step proc-
ess comprised by: Education, Implementation, Inspiration & Evaluation (Light, 2007).
People want and need to know the reason for the work they are doing as well as the goal of it, like
for instance a new process, offering, etc. They might disagree with the new initiatives but still have
the right to be informed. Secondly people need to understand, their role and tasks in that particular
project and this should be pointed out clearly. The implementation phase often requires training as it
involves change and new working procedures. Furthermore it requires persuasion as people in gen-
eral are resistant to change.
“What you’ve heard about resistance to change is true, there are people who absolutely will not ac-
cept change, no matter how good your case. These people usually have to go. Maybe that sounds
harsh, but you are doing no one a favor by keeping resisters in the organization.” (Jack Welch, 2005,
pg., 142) The third step is inspiration. This step serves to induce pride of what’s accomplished and
motivate ahead. Proud and motivated employees will deliver the concept better (Light, 2007). The
fourth and final step aims at evaluating the implementation for continuous improvements that will
hopefully result in the achieving of excellence -not only as a measuring system for rewards and bo-
nuses. When McDonalds went through the structural and brand policy changes in 2003, Light inte-
grated this concepts with a McDonalds brand university to train employees through a Harvard Busi-
ness School approved brand management course. We believe that these two models will aid the com-
pany in creating the right working space to enhance the creation and delivery of superior brand expe-
riences. Furthermore, this will create motivation and focus, which will be in line with the brand
framework and direct efforts aiming at maximizing shareholder value.
The external operationalization of the brand designed experiences should be driven internally, how-
ever not limited to internal sources and capabilities. Organizations need to integrate the necessary
resources from around the world from an early stage of the brand design process in order to increase
its creative and other relevant value adding capabilities. This has been exemplified by cases includ-
ing McDonald’s with Light’s freedom within a framework philosophy. PepsiCo Int. has also adopted
this philosophy: “We believe that he who is closest to the consumers…should own the keys to inno-
vation.. Working together with our innovation teams is a set of best-in-class partners; people like
IDEO and eatbigfish…They provide us with fresh approaches to insights, prototyping, and develop-
ment.” Antonio Lucio SVP Chief Innovation and Health & Wellness officer98. Finally, the external
operationalization should benefit from as many relevant dialogue channels and touch points as possi-
ble. The era where relying mainly on mass media as the most effective communication channel is
over. “The Company is using many platforms and has shifted the advertising budget...No single ad
can tell the whole story in today’s economy…brand journalism represents the end of brand position-
ing as we know it… We don't need one big execution of a big idea. We need one big idea that can be
used in a multidimensional, multilayered and multifaceted way.” -Larry Light when CMO at
McDonald’s
98 Antonio Lucio SVP Pepsico International American Marketing Association speech June, 2007
5.11 Stage 4: Saxo Bank’s Brand Operationalization
Saxo Bank’s culture is one of the company’s main sources of competitiveness. This argument is sup-
ported by Rabbe Ekholm, Chief Commercial Officer at Saxo Bank: “What has made the difference
in the most successful companies of all times has been identified as the culture of the company… I
think what has done the strongest impression about Saxo Bank to me by far is the culture of the com-
pany. It is remarkable how strong and cohesive it is and it really is the platform for how the company
is going to grow in the future”.
The culture of Saxo is not only strong and cohesive but employees are very committed and motivated
to the future challenges 99. This is the result of having a history of success, leadership at top manage-
ment level and the right Human Resources systems in place to communicate best practices, inculcate
values, offer education and leadership programs and create incentive and reward systems. Every em-
ployee hired by Saxo Bank goes through an introduction program in which top management repre-
sentatives from different departments and areas, present some of the success stories of the company,
the values and future objectives.
To further inculcate Saxo Bank’s values to new employees, one of the two CEOs attends and delivers
a speech for the new “Saxonians” during one of the days of the intro program100 . At the end of the
intro program employees’ leave with two books, which encompass the philosophy of the company:
Jack Welch, “Winning” and Ayn Rand’s “Atlas Shrugged”. While the Ayn Rand’s book has been
adopted as the philosophy, values and principles of the company, “Winning” has been incorporated
by Saxo CEOs as an example of how business and management should be practiced. Founders and
CEOs Lars Christensen and Kim Fournais publicly acknowledge this: “We believe that the values
and behaviors described by Welch in “Winning” are so close to how we run- or at least would hope
to run Saxo Bank. That can give a better idea of the philosophy of Saxo Bank.101”
When employees are hired and promoted; aspects such as believing in the vision, the values and their
enthusiasm are key elements taken into consideration. Following Jack Welch’s advice during his visit
to Saxo Bank in 2006, the company has established a leadership program for Saxo Managers. “Busi-
99 Employee Engagement Survey June, 2007 Appendix 4.2

100Both of the authors of the present paper attended to a Saxo Bank intro program Kolenda in February and Alvarado in
June 2007
101 Jack Welch, Winning, 2005, a Foreword by Saxo Bank
ness is not a social system. Just like in the world of sports, business is about competition and win-
ning. And people love to win. So create role models and heroes and celebrate them.” Jack said dur-
ing his visit.
In this way, Saxo Bank has been able to establish a very strong and coherent culture, possessing the
fundamentals to exploit the capabilities of absorptive capacity and social capital. Which we believe
are key internal drivers for the success of a brand. Nevertheless we have identified two key areas in
which Saxo Bank can find room for improvement to better operationalize the design and delivery of
brand experiences. The first one is related to solidarity or integration, a key determinant of social
capital. While a recent employee survey by Rambøll102 reveled that employees live and support the
Saxo vision, are motivated and have the necessary resources and opportunities. All of which are im-
portant determinants of Absorptive Capacity and Social Capital. Cross-functional cooperation was
identified by the same survey as the lowest scoring factor and far from a desirable level.
The low level of cross-functional cooperation does not mean that employees don’t share the corpo-
rate values, as Rabbe points: “Its amazing from the most junior salesman to the most senior people,
everyone seems to share the same values”. But rather, we believe that part of the source of this situa-
tion derives from Saxo Bank’s culture, which strongly praises the corporate value of “independence”.
“Today, far too many people are unwilling to accept full responsibility for their own livelihood…they
prefer to be supported by others through public hand-outs rather than by taking their own chances…
it is sad, and in the long run unsustainable if this options continues to be chosen by so many people.”
Lars Christensen and Kim Fournais, Saxo Bank CEOs103. This is a paradox, as we believe that Saxo
owes a great part of their success to their coherent and strong culture and belief in the company val-
ues. Thus it is important for Saxo to more readily encourage cross-functional cooperation by setting
an incentive system based on this aspect.
Furthermore, Saxo should design a workflow, which facilitates this type of interaction because the
organization used to be previously broadly divided into three main groups: Front Office, Finance and
IT. A third possible action point can be related to more opportunities to create social capital and ab-
sorptive capacity through social initiatives. This type of initiatives are already taking place in the
form of annual parties, a “Share your brain expertise SYBE” program, and channel to receive ideas,
the “Friday bar”, departmental trips, etc. However more emphasis on creating the opportunities and
102 Employee Engagement Survey June, 2007 Appendix 4.2

103 Jack Welch, Winning, 2005, a Foreword by Saxo Bank
motivation for people from different departments, backgrounds and capabilities to share a common
interest to cooperate should be further encouraged. Finally, in Saxo Bank’s rules of engagement we
have identified “compliance” and “communication” as two elements, which can be more actively
communicated, promoted and talked about within the organization.
A second critical point in the operationalization stage in which Saxo needs to take action is to clearly
define a brand identity, essence and values. While some brand values and overall brand positioning
have been presented in the booklet “Strategy 2010- the road to success” there is some internal confu-
sion on what the brand values are. This has led to different interpretations and inconsistent results as
exemplified by the “Viking cartoons” utilized in Singapore as part of the brand symbols104. It is
widely recognized within the marketing department and throughout the organization105 that there is
not a clear brand identity and this will result in lack of a clear direction when designing and opera-
tionalizing Saxo Bank’s brand designed experiences (solutions).
We believe that Saxo Bank should clarify the meaning and role of their brand values and how these
co-exist with the corporate values. While great efforts, initiatives and systems are in place to com-
municate and inculcate employee values, brand values are not clear and not presented in any of the
human resources initiatives other than the brief positioning paragraph in the “Strategy 2010” booklet
(published materials and introduction/training and other programs). It is important that human re-
sources work together with brand strategists and people in other departments including sales opera-
tions and global solutions. This should be with the goal of creating brand Focus, Alignment, Creativ-
ity and Excellence.
Some efforts in line with the FACE framework are already in place. Focus and Alignment, are
crafted by senior management through internal publications like “Strategy 2010”, “2006 Annual Re-
port, Saxo Bank Perspectives” and video streams “A view from the top”. These channels set the
goals, highlight the challenges and describe how to overcome them with regards to the corporate ob-
jectives; nevertheless these do not include brand management considerations and objectives.
104 Interview with Birgitte Juel Christensen, June, 2007 Appendix 3.10
105 A pointacknowledged by both Birgitt Juel Christiansen, Head of corporate brand and Rabbe Ekholm CCO during
separate interviews
Evidence of Creativity exists around the organization106, being one of the reasons for Saxo Bank to
be in the forefront in regards to industry developments. This creativity has come from sources such
as IT capabilities, Financial Expertise and Human Resource development. Unfortunately the creativ-
ity has been scattered in hubs. Moreover, due to poor cross-functional communication, ideas and
knowledge are not being shared. Saxo needs a structured approach, to effectively share knowledge
and allow for cross-functional creative cooperation based on consumer insights. Excellence in the
execution, the processes and individual performance is another factor in which Saxo Bank scores
low. Change has been the only routine in Saxo Bank.
As a consequence of the rapid growth the organization as well as individuals have not had the time to
optimize performance as new challenges and new tasks constantly are eroding patterns and proc-
esses. Saxo Bank is already fully aware of this aspect as they recognize that while employee produc-
tivity was quite high before the growth initiative, big investments and numerous employee hiring in
2006 they state as a goal: “Productivity per employee must go up at least 20 % pr. year” 107. However
we do not have information on specific strategies, programs and systems that have been initiated to
achieve this.
To fix or improve the current weak aspects from the FACE model, Saxo Bank can utilize the EIIE-
process (Education, Implementation, Inspiration & Evaluation). First, Saxo needs to educate the em-
ployees about the decided initiatives, strategic and directional changes. While employees do not nec-
essarily need to agree to begin with, they need to understand the reason and importance of the
changes.
Once the employees understand the direction, they need training on what their new role is and how
they can contribute to for example increase productivity, cross-functional cooperation, consumer in-
sights generation and sharing. This will be accompanied with the implementation of a new structure,
workflow and processes. Once implemented, the task is to inspire and create commitment and moti-
vation. It is important to recognize that changes will have no effect if staff is not committed and mo-
tivated to the new direction.
106 Based on 9 months of observations.

107 Strategy 2010.
The last step is to evaluate on the FACE and improve where needed through the EIIE-process. To
assure consistency and commitment in executing these recommendations; Saxo Bank’s top manage-
ment needs to initiate, guide and be involved throughout the process.
The external operationalization of Saxo Bank’s brand designed experiences should be driven inter-
nally, however not limited to internal sources and capabilities. Historically, Saxo Bank has relied
primarily on one creative agency: Hello Group (see interview with Hello Group appendix 3.5). While
we believe that relying primarily on Hello Group has proved effective for Saxo Bank’s first years of
growth; it is imperative for the bank to identify new sources of creativity which can provide the best
in each of the relevant areas and create a positive coo-petition among its agencies.
Different agencies should be identified for capabilities including web-design, photography, banner
design, graphic design, logos, 3D, consumer research, concept development, insights, etc. The newly
identified creative sources can be based in different countries to facilitate local execution. Finally
these should be integrated into the brand design process as early as possible to improve brand consis-
tency and coherency through the brand framework.

5.12 Stage 5: Brand Evaluation and Renovation - Theoretical
‘The fundamental task of today’s CEO is simplicity itself: Get the stock price up. Period’ (Business-
Week 2000)
In order to do so companies cannot afford to house non-value adding activities, but need to eliminate
this “waste” by evaluating what are the internal value adding processes or the required ones to con-
tinuously re-direct them to aim at maximizing shareholder value. Several ways of measuring and
evaluating value derived from brand management have been set forth like the brand asset valuator,
the four pillars of brand health, the “power grid” of brand health, “Linking brand strength to value”,
“brand strength and intangible value”, identifying relative brand potential, brand extension analysis,
etc (Peter Doyle, Brand Economics 2003). The most famous is probably the “Brand Equity” model
presented by Aaker (1996) elaborated by Keller (2003) “Customer Based Brand Equity” and later by
Richard Jones (2005) “Stakeholder Based Brand Equity”.
As we have based our brand management approach on the design of experiences; we believe that the
appropriate way of evaluating the brand strength will consequently be by looking at the elements that
create and constitute the experience. To do this internally we believe that an approach such as the
methodology proposed by “brand-safeguarding” is applicable. This methodology combines many of
the brand economic metrics with an ISO certificate of excellence to safeguard brands. The frame-
work is scalable into an auditable ISO 9001:2000. Through this methodology, existing guidelines and
instructions can be adjusted. This methodology begins with eight standard key brand performance
indicators:
“customer-focus”, “leadership”, “involvement of employees”, “process-orientation”, “systematically
leadership”, “continuous improvement”, “Fact driven decision-making” and “mutual beneficial
stakeholder-relations”. When asking those questions it can be determined whether a renovation
should take place based on an internal assessment and from what stage this should begin. This ap-
proach allows companies to determine the best brand economic metrics tools for their specific con-
text.
Externally we recognize the need of evaluating brands based on the bottom line: the brand experi-
ence as perceived by customers. Light has presented the Brand Value Equation, which divides the
value of the brand into value-adding and value-consuming elements and argues that focusing on
brand-designed experiences of the equation is key to creating and sustaining a strong brand:

Brand Value Equation: (Brand Designed Experience) / (Money + Time)
The equation has as its nominator the relevant and differentiated brand-designed experience divided
by its denominator: the money and time spent. Companies have to be aware that denominator man-
agement leads to commoditization while focusing on the equation as a whole leads to a real enduring
brand differentiator. In other words, he argues that brand-designed experiences are the source of sus-
tainable competitive advantage. The primary focus of your brand experience must be on how special
you are, not how cheap you are…the goal must be to sell the distinctive quality of the brand (Larry
Light, c.f. Aaker, 1996). “Companies can only stay ahead of its competitors by continuously renovat-
ing and improving the real enduring brand differentiator” (Light, 2007).
Following this, we will turn into how a brand experience can be evaluated. As said by Malcolm Ste-
venson Forbes: “To measure the man, measure his heart” 108, we believe the designed customer expe-
rience to be the “heart” of the brand. When measuring this internally employees and other stakehold-
ers can be interviewed or surveyed through quantitative or qualitative research. We are equally inter-
ested in how to evaluate the experiences externally as perceived by the customers. The customer’s
evaluation of the experience is measured against the promise of the brand. Since the brand represents
a dynamic interface between an organization’s actions and its customer’s interpretations, it can be
regarded as a cluster of functional and emotional values, which promises a unique and welcomed ex-
perience (Chernatony, 2006). Consequently the brand promise can be viewed as the “selling-point”
of the experience, and plays an essential role in the success of the brand, as the total consumer per-
ception needs to reach and preferably exceed the experience promised by the brand. Thus in evaluat-
ing the brand one has to look at the brand promise, compare it to the delivered experience, the cus-
tomers expectations and their perception of the experience. Since we have used the brand pyramid to
design and synthesize the elements, which the brand promise should deliver, we believe that a
method to evaluate its effectiveness could be based on quantitative and qualitative approaches con-
sidering the effectiveness of its different elements. These could also consider the memory of the ex-
perience delivered. However detailed considerations on how to measure each level and the design of
the required surveys and research methods are out of the scope of this paper.
108 Shaw & Ivens, 2002.

5.13 Stage 5: Saxo Bank’s Brand Renovation
Renovation
In the application of the brand management model to the case of Saxo bank we have evaluated on all
aspects important to the brand. As such we have been undergoing the renovation process by pointing
at critical areas that need improvement in order to build a strong brand. However the design of spe-
cific brand valuation models is out of the scope of this paper. Hence we have chosen to follow an ap-
proach that is suitable and in line with our marketing standpoint and proposed theoretical framework.
The Brand Safeguarding framework puts forward a set of key brand performance indicators, which
can reveal initial indications on key areas to be considered internally by Saxo Bank.
“Customer Focus”
As emphasized earlier Saxo does not have any focus on the customer experience, but mainly on the
functions and features of their offerings. Evidently it is not possible to evaluate how these are con-
structed from an internal perspective. Instead it is possible to measure and evaluate on the customers
expectations and furthermore whether these are being fulfilled or exceeded by the experience the
customer receives. We propose this action as it builds on the customer insights and expectations and
enables management to construct experiences that will exceed the customers’ expectations. That the
USPs (Unique Selling Propositions), which Saxo currently use to communicate and promote them-
selves are solely functional is clear when taking a quick view at the websites that offers: “Zero
Commission!” “No Deposit charges” and “The worlds best trading platform” 109. We acknowledge
that these functional benefits play a role in attracting customers, however they should be accompa-
nied by the emotional rewards and experiences that Saxo can deliver consistently.
“Leadership” and “Systematically Leadership”.

As mentioned in the Operationalization stage, Saxo Bank has initiated numerous initiatives in order
to enhance leadership quality and align it with the values and goals. The “Leadership Pipeline” and
the “Role model programme” are proofs of this and build on the strong leadership culture that is re-
flected by the two CEOs. There is however a pressing need for a clear brand vision that includes the
brand values, brand promise and the brand essence. This will enable employees to have a much
clearer guidance of the brand and the direction it is taking.
109 www.saxobank.dk
“Involvement of employees”
Employees of Saxo Bank have a great degree of influence on the company. Through the various in-
ternal forums employees can post suggestions for improvements and comment on issues from new
product developments to processes. Once every quarter the Rambøll management conducts a survey
to take the temperature of the company, and the employees are involved in the progress. Major stra-
tegic issues like the newly announced regional reconfiguration are on the other hand taken solely by
the SEM-team (Senior Executive Management) but communicated efficiently across the organiza-
tion.
Process-orientation
Saxo as a bank needs to follow certain processes in order to be certified. In addition to these, Saxo
Bank has been broadly divided into three value-adding areas (Front Office, Finance and IT110). How-
ever, Saxo Bank has been more project- than process oriented. Departments are divided into task
forces that handle a certain area. Within these areas individuals or teams lead projects from begin-
ning to implementation.
Continuous improvement
Saxo bank is aware of the importance of this indicator, but has currently not been able to do so much
about it. In a company that grows as fast as Saxo Bank, waste of resources and inefficient processes
are part of everyday operations. New employees join the company every day and changes, both in-
side and outside affecting the direction of the company are frequent. Thus, it is difficult to avoid
these inefficiencies, but it is crucial in the long run that Saxo Bank improves in this area.
Fact driven decision-making

Quantitative Analysis plays an important role in the organization. They develop the underlying algo-
rithms for the trading software and internal security. More than that they provide the rest of the or-
ganization with quantitative facts when needed for a decision. Unfortunately, this does not always
work as intended as the department has an extensive workload, which means that many decisions are
taken based on “intuition” and “gut-feeling” rather than a solid foundation of facts and figures. Fur-
thermore as discussed in the Analysis section marketing research and consumer insights have been
limited and many decisions on what to communicate, how to advertise and promote the offerings and
110 See Engagement Survey – Saxo Bank A/S 2007 appendix 4.2
other segmentation considerations have also been traditionally based on “intuition”, “guesstimates”
and “gut-feelings”.
Mutual beneficial stakeholder-relations

The two CEOs stress the importance of cooperation rather than competition, when talking about
competitors. This philosophy penetrates across all stakeholder segments, but as much as it is a solid
philosophy as much can as it be difficult to execute in practice. Saxo Bank has for instance a white
label partner in Switzerland called Synthesis Bank. Recent plans about entering the Swiss market
have conflicted the relationship with Synthesis Bank.
Evaluation of delivery of brand experiences

After following the “brand safeguarding” methodology internally and once Saxo Bank has imple-
mented a clear brand vision, brand pyramid and organized its work flow in order to design experi-
ences. The effectiveness of the delivery of brand experiences can also be evaluated using the brand
pyramid to research and quantify each of its levels as perceived by costumers and other relevant
stake-holders.

6. Conclusion
This concluding chapter is divided into four parts to round up and reflect on the findings in this the-
sis. In addition to the initial conclusion of the thesis, the theoretical, managerial and methodological
implications are also reflected upon. The main focus of this thesis is the management of brands
within the financial service industry. Specifically, the problem statement is: “What are the major im-
plications of the changes in the context of today’s economy, to the management of brands in the Fi-
nancial Service Industry?” The problem statement is supported by two research questions and re-
lated propositions. In the following paragraphs, the conclusion on the problem area is summarized.
Subsequently, the implications of the empirical findings on the theoretical field are considered. Next,
the managerial implications from the empirical insights are outlined. Finally, the methodological im-
plications of the thesis are considered.
“What are the major implications of the changes in the context of today’s economy, to the
management of brands in the Financial Service Industry?”
The initial exploratory research documented in Chapter 3 served to identify the initial implications
and key elements, for further investigation. The exploratory research unveiled the interrelationship of
these implications and elements and resolved in a set of research questions for further examination.
Chapter 3 pointed at the trends summarized in Table 6.1 as the major aspects which should define the
research questions and related propositions to study the major implications of the changes in the con-
text of today’s economy, to the management of brands in the Financial Service Industry.

Table 6.1: Key Trends of Brand Management applied to the Financial Service Industry
Trend Description
Experiences Products and services are no longer enough the degree to which a financial service
company is able to deliver a desirable and memorable customer experience in its of-
ferings will largely determine its success
Touch-points A brand represents a dynamic interface between an organization’s touch-points and

customer interpretations. This underlines the importance of actively managing the
touch-points and thoroughly incorporating them into the offered experience.
Brand values Brands have sought to identify with values that relate to their target market and are
common to the corresponding communities.
Innovation The financial service industry has until recently been protected by complexity of
products and prices, this advantage has disappeared to a great extent with the emer-
gence of the Internet. Developing innovative offerings has thus gained importance.
The exploratory research documented in Chapter 3, served to identify a number of key trends that are
essential in building a strong brand in the financial service industry. Furthermore, a growing need of
applying different consumer centered research techniques to support the creation of experiences and
the management of touch points was identified. An example of a research technique that has gained
much attention was presented as “Ethnographic Research”. Ethnographic studies are gaining ground
as a mean to better understand the different roles and needs of the customers in their natural envi-
ronments and then turning these consumer encounters into ideas that transform product categories
and brands
Consequently, Chapter 3 narrowed the scope of the study by defining the research questions and its
related propositions.
Research question 1: “How should companies in the Financial Service Industry create brand
experiences with the goal of maximizing shareholder value?”
Research question 1 analyses the challenges in creating brand experiences in the financial service
industry with the goal of maximizing shareholder value. We found, that to be able to profoundly ex-
amine the problem area and account for the elements encompassing a brand, a theoretical relation on
what constitutes a brand and how this translates into an experience was necessary. For this purpose
Barney’s (1991) resource base view of the firm theory integrated with Doyle’s brand management
Model was put forward. Albeit, the model presented by Doyle serves as a method to understand the
process that can be followed to aim at creating brand experiences with the goal of maximizing share-
holder value, we discovered that it does not encompass concepts on generating environmental in-
sights, the internal knowledge flows and the delivery of these as an experiences externally. Hence-

forth, by utilizing Itami’s (1987) invisible assets theory, this thesis both sets out to investigate the
research question by employing a more detailed approach to characterize how brands are constituted
and the process that they undergo until experienced by consumers, grounded on the resource base
view. From the theoretical review on brand management in chapter four, three dimensions for the
successful creation of brand experiences that could maximize shareholder value were defined,
namely 1. “Brand experiences can be created based on resources, processes, identities and mean-
ings”, 2. “Brand experiences can be based on a bundle of tangible and intangible resources encom-
passed by an identity” and 3. “Innovation in the financial service industry can be based on a bundle
of both tangible and intangible assets delivered to consumers as an experience. It was established that
these characteristics of the process of creating a brand entail challenges to the case in practice, hence
to investigate this challenges we put forward the propositions as depicted in Table 6.2.
Table 6.2: Creating Brand Experiences in the Financial Service Industry to maximize shareholder value
Dimension Proposition Result
Brand Experience Proposition 1: Brand Experiences can be created by Financial Confirmed

Service companies based on resources, processes, identities and
meanings
Bundle of Resources Proposition 2: A Company in the Financial Service industry can Confirmed
create brand experiences based on a bundle of tangible and intan-
gible resources encompassed by an identity
Innovation Proposition 3: Brand innovation is based on a bundle of both tan- Partly Confirmed
gible and intangible assets delivered to consumers as an experience
(features, functions, emotional rewards, values and personality)
As depicted, the results of this study support or partly support the propositions regarding the chal-
lenges for creating brand experiences with the goal of maximizing shareholder value in the financial
service industry. These propositions have been discussed in-depth in chapter five. Subsequently, the
findings in relation to the foundation for the process of creating brand experiences conducted in Saxo
Bank will firstly be delineated. Thereafter the challenges, which are found in the more practical level
and outlined by research question 2 will be discussed.
In chapter five it was found that in order for Saxo Bank to have a clear identity for each target group
they first needed to have a clear understanding of where they are right now, what is their brand es-
sence and what do their customers experience/perceive at the moment. Then it would be possible to
understand the gaps along the dimensions that we have presented in the framework. For example, if
they want the personality of “Scandinavian cool” but the customers don’t relate to that personality
then it is necessary to determine what are the gaps and fulfill them. This empirical evidences con-

firmed the relevance of an understanding of the brand process based on resources including envi-
ronmental insights, processes, identities and meanings. One could question the argument of focusing
on the creation and delivery of experiences. As this is only based on definitions of what an “experi-
ence” based on meanings externalized by identities and could not represent a significant difference
from a definition based on service or a product. For example, one can argue whether the combination
of products and services into an offering received by customers who bought a Ford in the 1920s was
not already an “experience”? or Isn't every product inherently linked to a type of service and a
memorable experience of some sort? In spite of these views, we believe that no experience is always
the same and that there will be factors that change every time a customer buys an offering. Thus, we
believe that as markets become more competitive the elements and configuration of an “experience”
need to be more specifically managed while linked to its source in order to compete with the many
other offerings within the same market. Companies then need to link the delivered experiences to a
trust worthy identity or as we have argued deliver the identity of a brand through a memorable expe-
rience.
When delivering an offering encompassed by a defined identity, companies can improve the quality
and coherency of the delivered experiences. Furthermore, in order to deliver experiences that meet or
exceed customers expectations the offerings delivered increasingly need to be innovative concepts,
which can be found in cost effective experiences, business models or products. The bottom line of
why we have used the term “experience” delivered as meanings by an identity instead of “solutions”,
“services” or “offerings” is that this term has the characteristic of being “memorable” and can en-
compass all of the five senses. Hence, we have argued that the process through which these experi-
ences are constructed, delivered and perceived by customers should increasingly be a focus point for
companies aiming at having strong brands. However, we would like to clarify that brands do not
solely rely on the concept of “experiences”. We used this concept as the central aspect since we be-
lieve that in today’s context this approach can prove useful. In following decades the focus could
shift as presented by Pine and Gilmore (1999) from the so called “experience economy” to a “trans-
formational economy” or some other type of offering. Based on these findings propositions 1 and 2
were found applicable.
The present thesis, on the other hand did not gather the sufficient data to confirm proposition 3. This
is since, innovation was defined as increased value as perceived by customers. Following, we de-
fined a brand as “a promise of a relevant and differentiated experience”. Nevertheless, we recognize
that a brand is not what a company intends it to be. But rather what its user perceives it to be. It can
then be questioned if such a perception can be managed at all. What customers ultimately care about
is if what they perceive equals or surpasses their expectations. Therefore the relevance of a brand and
its uniqueness can only be judged by its users. The present paper did not consider the experience and
possible innovations as perceived by the users. Hence it was not possible to confirm proposition 3.
While companies can aim at delivering configurations of product characteristics and services to dif-
ferentiate their offerings; the external environment, the customer’s state of being and other factors
will have a major role in determining what it is being experienced and how much value this repre-
sents.
Nevertheless, we believe that innovation requires creativity and creativity involves risk and uncer-
tainty. Within this understanding, the only way of aiming at being more profitably innovative is by
setting a clear framework and direction for the offerings to be assembled. In this same way depart-
ments can cooperate cross functionally and strategic focus can co-exist with creativity.
Research question 2: “What do the stages of the brand management process consist of and how
can the process be applied to a case?”
Research question 2 centers on what the stages of the brand management process consist of, and how
could the process be applied in practice. Thus, this thesis went one step further than to merely ex-
plore the dimensions and theoretical foundation of brands as resources delivered externally as expe-
riences, by considering how to operationalize the theoretical propositions in the case of Saxo Bank in
the strategic level. From the theoretical review in chapter four, the framework and stages in relation
to the management of brand experiences were defined. Following Chapter 5 discussed in depth both
the theoretical stage and its application to the Saxo Bank case. With the aim of interconnecting the
theoretical streams and to further distinguish the research question, two propositions were developed.
Table 6.3 illustrates the findings of the propositions in the case analysis.
Table 6.3: Stages of the Brand Management Process and its application in the Financial Service Industry
Dimension Proposition Result
Stages Proposition 4: A financial services company can manage a brand Not Confirmed
through a 5 key stage process: Analysis, Vision, Experience De-
sign, Operationalization and Evaluation.
Framework Proposition 5: Environmental Understanding, Corporate Vision, Confirmed

and the brand identity guided through the brand essence can set a
framework for the design of experiences.
Saxo Bank’s Case as originally encountered by the present paper has evolved. The bank’s top man-
agement have begun a re-structuring process with new responsibilities and workflow. These initia-
tives are in line with the philosophy and recommendations of the present paper. The main value of
this case study lies on its emphasis on the management of the Saxo brand. Nevertheless, Proposition
4 assumes that managers will be able to arrive to the creation of innovations and superior brand ex-
periences through a set of stages, gathering and combining resources and understanding consumers.
It was found through our case that in practice there is no process, framework or model based on a set
of stages, which can lead companies to consistently creating innovative and profitable offerings.
Hence, proposition 4 was not confirmed. A brand management process is a continuous effort; in
practice it does not have a beginning middle or end. It is a process of continuously understanding the
environment, customers, competitors, history, etc. It is about visualizing the future and assembling
diverse capabilities and initiatives to direct the efforts towards its creation. It is a framework that
should be filled with social interactions, creativity, and diverse interpretations; and guided by leader-
ship, strategies and capabilities.
In spite of this finding, we can conclude from both the application of the model to the Saxo Bank’s
case and from our discussion with CCO Rabbe Ekholm, that the constructed brand management
process is relevant for Saxo Bank’s case and that it can be used as a guiding framework. Hence
proposition 5 was confirmed. Nevertheless, it can also be concluded that it would be difficult to ap-
ply the complete process in practice due to its holistic nature.
6.2 Theoretical Implications
We have argued that today companies have to compete based on brand experiences and that they
have to be relevant and different. In order to do so we have encouraged managers to guide their in-
ternal resources and capabilities by generating consumer insights, having an environmental under-
standing, a vision, purpose, imagination, an identity, creativity, strategy and driven by knowledge
management and human resources through a framework to maximize shareholder value. Only by
guiding the organization to enable consumer dialogue to continuously generate insights will the de-
livered experience be able to achieve a differential advantage at some point. It is in this light, that we
have defended the importance of incorporating a social construction perspective. We believe that the
value of our approach lies on its intent to combine functional normative perspectives with a social
construction understanding on the one hand. While on the other a strategic approach that welcomes
and incorporates the role of the creative functions. In this way we were able to move away from the
traditional positioning perspective to a more dynamic and actionable framework. The question that

comes to mind when assessing the brand management process from a theoretical perspective is its
general usability. Not only when applied to another company within the financial service industry,
but also within other industries and businesses. For example to companies offering products instead
of services. Will it for instance be relevant to apply the model to a company within the steel industry,
which “works up” iron ore as a prefabricated good and sells it to other businesses like the car indus-
try? Should they also consider brands and experiences or should they rather be primarily concerned
with fabricating the good at best quality or the lowest cost? The B to B business may be under influ-
ence by some legal and political constrains limiting their rational and emotional behavior. However
we believe that this process and its elements can prove to be highly relevant to such a company too.
In that case, the focus might be merely in the bottom of the Brand Pyramid on the features and func-
tions rather than on the personality and values, but the relations to stake-holders are still to some de-
gree influenced by emotional rewards, that can be reflected through for example the perceived qual-
ity of the good or the way this is delivered. The presented brand management process encourages
creativity and innovation, which we believe are important factors for success in every industry. The
steel manufacturer might for instance capitalize from new innovative ways of creating costumer
value, business models or discovering new emerging markets that can benefit from product varia-
tions. To summarize, we believe that the presented brand management model can be applied to suit
other industries and business models, so long as the proper adaptations are considered. Finally, we
would like to encourage other researchers and practitioners to further test the presented model and its
assumptions.
6.3 Managerial Implications
During the research we were enriched by various insights into creating a brand management process.
Henceforth, in this section the concluding managerial implications from the empirical findings in the
case study, are outlined. It is evident that a process derived from science needs modifications to func-
tion in different real life scenarios. Throughout the thesis we have been aware of this fact and con-
stantly seeked means to bridge this gap between theory and practice. In order to do so a set of actions
are delineated.
It is clear that the developed brand management process applies to Saxo Bank and the current chal-
lenges the company is facing. This point is evidently exemplified through an interview with Rabbe
concerning his view on our findings. “I believe that this is a good framework which can guide and
define how things should happen. One of the reasonable things to do as a next step from this is to
actually understand what is the core brand essence. Because there is a brand essence and it needs to
be uncovered. Then this could be related back to the framework along its various dimensions”
(Rabbe Ekholm, CCO).
The indicated action from our meeting with Rabbe was basically to carry out a brand essence study.
It is important to unveil what the customers perceive and what is the guiding center for the frame-
work. For this we have recommended the “Lotus Blossom” approach in the current paper. Neverthe-
less there are many other relevant exercises. This will help Saxo Bank understanding what the brand
is today and along with that dimension, how far it can stretch. This will also help determining
whether the brand essence is in line with the vision for the future. Those are the first things that have
to be understood, to then decide on what is needed, either to stretch the brand or question what the
envisioned future is, and if it is valid. So the starting point for the process when applied to Saxo
Bank in practice has been defined as a brand essence study.
We can conclude from both the application of the model to the Saxo Bank’s case on a strategic level
and from our discussion with CCO Rabbe Ekholm, that the constructed brand management process is
relevant for Saxo Banks case and that it can be used as a guiding framework in practice. Neverthe-
less, it can also be concluded that it would be difficult to apply the complete process in practice due
to its holistic nature. This is because it intends to encompass various departments and functions into
creating valuable “experiences”. In practice, while Saxo Bank’s CCO Rabbe Ekholm is concerned
with many of the areas presented by the model, it is rather seldom that a company guides the build-
ing and maintenance of a strong brand and delivered experiences following a pre-defined process.
Instead, the different developments, decisions and exercises occur when flaws are discovered or as
resources become available.
Following we highlight important findings that should be considered by Saxo Bank’s top manage-
ment when implementing changes.
We believe that these findings and concepts will aid Saxo Bank in crafting strategies and aligning
people and capabilities through the process of building a strong brand.

The key considerations that we have encountered can be summarized in the following:
Table 6.4: Managerial Conclusions and Recommendations from the Case
CONCLUSIONS AND R E C O M M E N DAT I O N S

Acknowledge the importance of the delivered experiences
Develop methods to generate consumer insights, market insights and analysis
Align the corporate vision with a clear brand vision, purpose, essence and values
Adopt the Brand Pyramid tool to ensure brand consistency and enable the design of relevant and dif-
ferentiated experiences, which can serve diverse segments
Seek and integrate diverse agencies with strong capabilities and which can enhance local execution
within the brand-framework
Enhance cross-functional communication, knowledge sharing and cooperation
Implement a system to measure and evaluate brand management progress
6.4 Methodological Implications
This final section serves as a concluding point of reflection on the methodology. The research design
of this thesis is influenced by the case study methodology. Obviously the manner in which the re-
search has been conducted could have been done differently. In retrospect, we could have chosen a
less inductive approach for a purely deductive method, where the first step would have been the ex-
clusive focus on theory, and then the case study research. Although, our research methodology has
been complex, we believe that it also has allowed for more interesting and divergent findings to
emerge.
Looking back, one pivotal step in our research that we may have considered doing differently, was
the choice of a single-case study. Instead of investigating a single case, we could have utilized the
many-facetted insights from a multiple case study. We believe it could have been advantageous in
our search for the implications related to implementing a scientifically developed process. Further
this would have strengthened the subsequently generalizing of our findings.
We conducted a few initial interviews in Denmark, before commencing on our empirical research
journey to AMA in San Francisco. Nonetheless, now we believe that it would have been advanta-
geous for our understanding of the phenomenon to have, conducted most of our Danish interviews
before traveling to San Francisco.
Additionally, this thesis has certain limitations. We investigated a company within the financial serv-
ice industry; other companies from the industry were interviewed together with several practitioners

and academics. We acknowledge that this has influenced the findings and results. Henceforth, it is
obviously not straightforward to apply the findings directly to other industries and functional areas.
We do not claim that it is possible to assume that the case specific findings in this thesis holds true
for other firms. Clearly, there is a need for a similar quantitative study with much larger firm- and
geographically diverse sample size involved. Nevertheless, we do find that the conclusions in this
thesis are relevant for the case company, to academically contribute to the theoretical field of brand
management, and as points of learning for companies considering building strong brands.

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Brand Process Thesis Saxo Bank Final After Defense

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Copenhagen Business School

IMM International Marketing Management

BRAND M ANA GEME N T P R OC ES S

Uriel Alvarado Cancino

Brand Management Process Master Thesis! 1

Brand Management Process Master Thesis! 2

Brand Management Process Master Thesis! 3

1.2 Research Motivation! 8

1.3 Central Definitions! 9

1.4 Structure of the thesis! 10

2.2 Case Study Design! 16

2.3 Data Gathering! 17

2.4 Empirical Research! 18

2.5 Validity and Reliability! 22

2.6 Limitations of the Thesis! 25

3.2 Evolution and Trends of Brand Management! 30

3.3 Chapter Three Conclusion! 37

4. Brands as Resource Management # Theoretical Framework! 38

4.2 Research Questions and Propositions! 42

4.3 Brand Management from Resources to Meanings! 44

4.4 Brands as innovative resource bundles! 50

4.5 Brand Management from Resources to Meanings through a Process! 55

5. Brand Management Process applied to Saxo Bank! 63

5.2 History of Saxo Bank! 64

5.3 Saxo Offerings, Touch-points and Experiences! 64

Brand Management Process Master Thesis! 4

5.5 Stage 1: Analysis of Saxo Bank! 76

5.6 Stage 2: Brand Vision - Theoretical! 83

5.7 Stage 2: Saxo Bank"s Brand Vision! 90

5.8 Stage 3: The Design of Experiences - Theoretical! 93

5.9 Stage 3: Saxo Bank"s Brand Experience Design! 102

5.10 Stage 4: Operationalization - Theoretical! 108

5.11 Stage 4: Saxo Bank"s Brand Operationalization! 113

5.12 Stage 5: Brand Evaluation and Renovation - Theoretical! 118

5.13 Stage 5: Saxo Bank"s Brand Renovation! 120

6.3 Managerial Implications! 129

6.4 Methodological Implications! 131

Brand Management Process Master Thesis! 5

Brand Management Process Master Thesis! 6

1.1 Problem Statement

1 Kevin J Clancy, 2001 “European Financial Marketing and management newsletter

1.2 Research Motivation

Brand Management Process Master Thesis! 8

1.3 Central Definitions

Brand Management Process

Brand Management Process Master Thesis! 9

1.4 Structure of the thesis

Brand Management Process Master Thesis! 10

Brand Management Process Master Thesis! 11

2 Stebbins, R. 2001 “Exploratory Research in the Social Sciences” Sage Publications

Source: Own based on Sekaran, 2003.

2.1 Theories and Literature Choice

Brand Management Process Master Thesis! 15

2.2 Case Study Design

2.3 Data Gathering

Brand Management Process Master Thesis! 17

• Academic research and literature

2.4 Empirical Research

Brand Management Process Master Thesis! 18

Management Level Industry Level Company Level

E*Trade Christian Mørk Laurid- Ulrik Branner, Director of global

Morten Skov, Human Resources

Kim Fournais, CEO and Co-owner

Brand Management Process Master Thesis! 19