In this powerful white paper, Professor Malcolm McDonald exposes the critical flaws in applying traditional fast-moving consumer goods (FMCG) branding models to service organisations — particularly in sectors like finance, insurance, travel, and retail banking.
Despite accounting for most modern employment and economic growth, service brands are still among the weakest in the marketplace. This paper shows how to fix that — with a practical approach rooted in competitive positioning, cultural alignment, and brand tangibility.
Key Challenges Unpacked
- Most service brands are indistinguishable — especially in finance and insurance
- Billions spent on advertising, little brand equity created
- FMCG-based marketing agencies often apply the wrong playbook
- Successful service brands (e.g. Virgin, First Direct, IKEA) buck the trend through clarity, consistency and cultural alignment
What Makes a Strong Service Brand?
- Clear competitive position derived from the corporate strategy
- Consistency across every staff interaction — not just marketing
- Physical cues (uniforms, decor, signage) that reinforce brand values
- Active participation and clarity of customer roles in service delivery
Service Sector Case Highlights
- First Direct: No branches, 24/7 phone and online banking, clear differentiation
- EasyJet: Mapped a new segment seeking low-cost, punctual travel
- Virgin Airlines: Used uniforms, colours and onboard culture to reflect a challenger brand
- IKEA: Involves the customer in service delivery with instructions, signs and store layout
Branding Strategy Considerations
- Corporate vs. individual branding: When to use a masterbrand vs. stand-alone brand names
- Brand risk management: How failed brand extensions (e.g. Continental Lite) damaged corporate reputations
- Participation levels: How customer involvement affects branding in banking, insurance, travel and fast food
Quote
“A brand personality cannot just be designed by a marketing department — it depends on the whole company, from the CEO to the front line.” – Professor Malcolm McDonald
Download the Full White Paper
This summary presents the key lessons — the full document includes sector analysis, behavioural branding models, and examples of how to make intangible services truly stand out.