| Marketing |
The rebranding of Abbey National
Abbey National, has unveiled plans for a complete overhaul of
its brand and range of products this autumn.
The Abbey National bank announced a £144m loss before
tax in the six months to 30 June, compared to £412m of
profits in the same period last year.
Abbey's shares leapt 47.5p to 536.75p, making it the biggest
mover in the FTSE 100.
Abbey has managed to claw back some of its dwindling market
share in mortgage sales, with its proportion of net lending
standing at 9.1 per cent of the market, compared with 6.3 per
cent a year ago. Savings and credit cards were also slightly
up.
Much of the boost in sales was achieved by slashing prices and
reducing margins.
Source: The Independent 31 July 2003
(adapted)
Questions
- Outline THREE advantages to the brand-owner of having a
successful brand.
- How are brands valued?
- Given the size of the loss, suggests reasons why the shares
rose.
- Describe the main factors affecting the various shares of the
mortgage market.
- How may a bank increase its share of the mortgage market -
apart from by dropping the interest rate charged?
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