Schulich school of Business
Consumer Behavior (MKTG 6150M)
Why ING chose the name Tangerine!!!
Defining the Topic
Paramount to the success of any Marketing strategy of public policy formulation is a comprehensive and exhaustive understanding of consumer, potential consumer, or population attitudes, behaviors and preferences. When Scotiabank acquired ING direct for $3.13 billion in 2012, it was agreed between both the leaders that it would be business as usual at ING. It is the largest deal by dollar deposit Scotiabank has done in its 180-year history and adds $30 billion to its deposits. Aiming to retain its customers, Tangerine has preserved ING’s business model and is not cross selling Scotiabank’s products. A primary concern for Scotiabank, however, will be retaining ING’s customers including many who opened an account with the upstart bank because it offered an alternative to major banks.
Change always comes with a certain level of uncertainty though. When it became clear that part of the deal included the name change a few (3000 of 1.9 million, according to Tangerine CEO Peter Aceto) customers jumped the ship. But the important question is why only so few customers left ING since the acquisition was announced: A likely answer is its distinctive Orange brand. After consulting with more than 10,000 Canadians – including 800 employees and 5,500 customers – Tangerine was chosen. The name reflects the bank’s core DNA but with a rather modern zest
Research done on the topic
As per my research, while looking for an alternate name, there were really two things that ING wanted to achieve. One was to protect ING Direct’s stake in the marketplace, which currently amounts to about 2 million customers, while the other was to set the bank apart from its competitors. Even at the beginning when the bank was named ING DIRECT it was looked upon by people as an odd name because at that time nothing was named as DIRECT, though a number of financial institutions followed it later on. So when ING DIRECT was forced to change its name under the terms and conditions of the acquisition, it got an opportunity to further prove its point that it’s different. Once again it could establish its image as a challenger and could stand out against the rest and it did exactly the same.
The company hired California-based marketing experts Lexicon Branding, the same team that helped Research In Motion become BlackBerry, and came up with the names Swiffer and Febreze. The bank then started asking customers and employees in both focus group settings and online surveys what they thought the ING Direct brand represented. “Simplicity” and “innovation” were two things the bank wanted to come across in its new name—the idea was to hearken back to its earlier days (being an alternative, simplified place to do your banking), but push the brand forward at the same time. The name Orange was considered on the shortlist, but was considered to be “too safe or obvious of a choice.” Tangerine makes reference to ING Direct’s orange history, while also being significantly different.
Importantly the people working on the project knew that customers could perceive a fancy name like Tangerine as being silly or non-serious. Banking is a serious business. People are being asked to give their life saving to the bank or are being helped to buy a home or to invest so anything that suggests any kind of non-seriousness might prove to be a disaster for the bank. So keeping in mind this seriousness it was decided that there wont be any reference of Tangerine, the fruit, in any of Bank’s advertisements. The bank recognizes that the service at the customer level needs to be thoughtful and earnest in order to win a client base. The use of the name Tangerine is just limited to invoke a feeling in the minds of the customers that the bank is different, its not like every other bank....
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