Radical realignment: low growth? Declining market share? Underperforming branches? A community bank in Texas responded to these problems by dramatically shifting both brand and market strategies--simultaneously.

• Author: Stephens, Jeff
• Position: Strategic Marketing - First National Bank of Mexia

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The problem was far from uncommon: The First National Bank of Mexia (assets: $75 million) Mexia Texas, recently found that business wasn't what it used to be. The Central Texas market had changed, the economic environment had shifted, and area residents had more financial options. The local economy was weak and the town had few prospects for visible economic recovery.

As a result, the bank was worse than stagnant it was losing market share. In addition, the bank's three branches in nearby communities were in the same situation: All were underperforming.

From a brand and marketing standpoint, the bank had little traction in the hearts or minds of the area consumer, it had a different bank name for each of its four branches and had struggled with outdated and unmatched branch environments. There was no sense within the bank--let alone the community at large--of what differentiated the bank from its competition. Marketing materials were nonexistent: sales efforts were passive at best. Not surprisingly, employee morale and customer loyalty were in short supply.

The solution: transformation

The bank's new generation of management realized that the strategies that had grown the bank in previous were no longer sufficient--simply because the business environment was different. In a show of courage vision, the 125-year old bank's management, board and staff committed in a transformation of the bank,

Recognizing that such change was beyond the bank's internal capabilities, First National with two outside companies: first a consulting firm and later, with a branding and marketing agency.

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The transformation program focused on combining the art and science of market research, data analysis, strategy development, multisensory marketing, experiential brand development and public relations. The comprehensive effort included both strategy and execution.

Developing fresh brand and market strategies

The program began with an extensive analysis of the bank's markets. Many banks consider branch data, basic demographic information and general market trends in making important decisions. And while this information is useful, it is no longer sufficient to reveal actual market opportunities. Additional information (demographic, psychographic, behavioral and so forth) must be collected and analyzed in relation to the conditions present and projected in a bank's competitive market.

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For First National Bank of Mexia, the results...