The VTB brand appeared on the market of banking services in 2006, when Vneshtorgbank and its banking subsidiaries in Russia, the CIS, Europe, Asia and Africa were transferred under the single VTB brand as part of a strategic rebranding program. By uniting 11 banks in 11 countries, VTB became a large international bank of Russian origin. VTB’s main shareholder is the government of the Russian Federation, which holds a 77,5% stake. The bank’s IPO, which was completed in May 2007, resulted in the sale of 22.5% of its shares to Russian and international investors. The bank obtained about $8 billion as part of an additional share issuance, which made VTB’s IPO not only the largest public placement of shares in the world in 2007, but also the closest one to the Russian people during the entire history of the national securities market.
A total of 120,000 Russians became shareholders in VTB.
Values of the Brand
VTB is a bank for energetic, goal-oriented, successful and independent people, a symbol of the modern Russian Economy and a leading Russian provider of banking services. VTB inherited the reliability and stability of its predecessor Vneshtorgbank, which was established in 1990 by a decision of the First Congress of People’s Deputies of the RSFSR and was tasked with providing effective banking services to foreign trade enterprises and organizations of the Russian Federation.
VTB’s subsidiary banks operate under a single brand and are guided by a single approach to working with clients. Thanks to its focus on providing high-quality banking products and services to the general public, VTB practically tripled the size of its regional network within the country between 2002 and 2006. In 2007 VTB had 524 sales offices in 62 of Russia’s 86 regions.
VTB’s extensive experience, highly-qualified employees, expansive network of branches and support offices, broad resource base, reliability and first-class reputation allow it to provide its clients with a broad spectrum of services, from classical banking products to integrated services. In order to best satisfy its clients’ needs, VTB actively works to expand its products and services while creating new ones as the market demands.
Values of the VTB brand
Reliable. VTB is an international group that is true to the fundamentals of Russian statehood. It is stable, confident and professional. It is constant in what is most important – the striving to expand and flexibly react to all the changes in the world. Russian. VTB represents Russia: its authenticity, culture and economic progress. Its subsidiary banks are strong, intelligent and patriotic. Their international financial experience serves Russia and its future.
Open. VTB’s subsidiary banks stand by their clients and partners. VTB is prepared to stand up for their interests and provide them any assistance. The bank strives for dialogue on equal terms and open communication: ‘Together we are positive, dynamic, flexible and successful’.
Innovations & Promotion
VTB is the nucleus of a growing financial group with a broad international presence. The bank services clients in 11 countries, but always remembers that it originated in Russia. VTB accumulates new knowledge obtained from abroad and brings home to Russia the international experience of the banking business. The consolidation of VTB Group’s banking network and the opening of offices in the world’s leading economic centers allows the Russian bank to compete on equal terms with large foreign banks and offer its clients more and more new services. VTB follows a strategy of a monolithic brand whose main peculiarity is a single VTB brand that communicates a single message to the surrounding world.
In the spring of 2007, VTB Bank completed a primary placement of shares among private investors, which became the largest ‘people’s IPO’ in Russia. There were 131,000 submitted and paid-for applications totaling more than RUB 40 billion. Almost half of the total number of applications came from the regions of the Russian Federation. Such success is the result of the high level of general organization of the project. Strategic planning and implementation of the advertising support played an important role in it.
The main task of the advertising campaign, which was conducted from 7 April through 8 May 2007, was to entice potential investors to visit the sales offices, call the call center or visit the VTB website. The target group is people with high consumer potential who are looking for reliability and quality of services. They are residents of Moscow and other cities of over one million between the ages of 23 and 49, with families and stable, above-average income. They are owners of small businesses with sales of up to $3 million, mid-level and top executives, highly-qualified specialists and white collar workers. This target group is characterized by having RUB 100,000 or more in cash savings.
The positioning of VTB as an open and reliable Russian bank is the basis of communication. Openness as the main value of the VTB brand precisely coincided with the main idea of the ‘people’s IPO’, which was to attract the broadest circle of private investors. This is precisely why images of people of various ages and social groups became the basis of the campaign’s visual com mu nication – potential VTB shareholders. The main emphasis was put on presenting the information simply and comprehensibly with varying degrees of detail in the messages intended for various communication channels – TV, outdoor advertising, press, radio, Internet and POSmaterials. Theslogan ‘Become a shareholder in VTB! Primary placement of shares’ emphasized the simplicity of the share purchase procedure, expressing the main idea of the campaign: everyone can become a shareholder in the Bank.
Advertising support of the IPO using the general VTB company style was a continuation of the bank’s image-forming advertising campaign and was elaborated on the basis of the single VTB communication strategy. The introduction of elements of the imageforming campaign (images, music, voice, etc.) in the creative materials helped to achieve integrity of perception. The created concept of the IPO advertising campaign had its own face and at the same time was precisely identified by the audience as a proposal from VTB – a rapidly growing and reliable bank that is therefore interesting as an investment.
Visual elements were elaborated such as the symbol and slogan of the campaign, forming a single bloc, in order to identify the advertising and information materials of the IPO. These additional design elements preserve the VTB graphic style and color scheme: blue is the brand’s main color and red is the color that is used in the bank’s corporate communication for providing services to private clients.
The symbol of the VTB IPO is a pie chart – a traditional and familiar element that is used to clearly represent the component parts of objects and their structure in the financial and any other field. The part of the circle that is highlighted in red represents the number of shares being sold in the IPO. The symbolic arrow that points to this sector is a way of, as it were, offering it to the investor: ‘Everyone has a chance to enter the circle of VTB shareholders’.
The use of the time factor in the advertising held the interest of the audience throughout the campaign, which ensured high demand among potential investors and prompted them to visit the sales offices without delay. During the campaign in the print media, as the end of the period for subscription to the shares was approaching, the number of portraits of VTB ‘shareholders’ on the ad increased, while the available space was reduced.
A certain stage-by-stage division of the campaign was also foreseen. After the announcement of the price range of the shares came the culmination, and the ads began to show a countdown to the application deadline. In this same period, the television advertising featured video clips with well-known clients of VTB. All of this effectively persuaded investors to respond to the advertising.
Another important factor in the advertising campaign’s success was the optimal selection of media channels, which was done taking into consideration the goals of the campaign and an analysis of the viewing audiences.
Economy & Finance
VTB is a rapidly growing and reliable bank, which means it is interesting as an investment. The banking sector’s assets increased from RUB 9,750 billion in 2005 to RUB 14,046 billion in 2006. Equity capital in the banking sector amounted to RUB 1,242 billion in 2005 and RUB 1,693 billion in 2006.
On the banking services market as of 1 January 2007, VTB Bank held second place in terms of assets and equity capital, net profit and loans to legal entities, and deposits from the general public.It held third place in terms of the assets of legal entities under management and fourth place in terms of loans to the general public. VTB’s balance sheet profit increased from RUB 15,8 billion in 2005 to RUB 24,7 billion in 2006. Net profit rose from RUB 12,9 billion in 2005 to RUB 17,2 billion in 2006. Based on data from the Bank of Russia, VTB’s share of the market as of 1 January 2007 was 6,4% with regard to corporate loans and 8,1% with regard to corporate resources.
Achievements & Prospects
According to research on the current position of the VTB brand in Russia conducted in January 2007 by GfK-Rus, 66% of VTB’s users (individuals who consider VTB their main bank) are prepared to continue to cooperate with the bank, as well as recommend it to friends and acquaintances.
Mission of the VTB brand
VTB is the nucleus of a leading financial group that represents Russia on international markets and provides professional financial service
VTB injects international experience into the modern Russian banking system, promoting its clients’ success
VTB is proud to present Russia to the entire world –a country that is prepared for cooperation and fruitful development
VTB presents to the world Russia’s intellectual and spiritual potential, strong character and hospitality
VTB builds relations with the entire world on a qualitatively new level.
Things you didn’t know about VTB
In September 2007 as part of the 1st National Festival organized by the Association of Russian Banks and ‘National Banking Magazine’, VTB submitted a project called Integrated Task Completion for the IPO Advertising Campaign in a contest and won in the category of ‘Best Advertising Materials’.