Marketing will be core to Northern Rock rescue plan

Northern Rock management have pledged their commitment to the beleagured banking brand and have revealed that marketing will be “core” to its rescue plan.

The temporarily nationalised bank published annual results and a summary of its action plan on Monday (March 31), stating its intention to clear its £24bn Bank of England debt by 2010.

Executive chairman Ron Sandler, who was drafted in by the Government to run the bank, has also published a message of reassurance to customers on the Newcastle-based bank’s website.

He says that although it will now “not always” be able to offer mortgage customers competitive deals, in most other aspects it will be “business as usual”.

He adds that it will retain its brand name because it still carries “a great deal of goodwill” amongst its customers.

In a summary of the restructuring plan, the bank’s board pledges to “re-establish the Northern Rock brand and revitalise marketing”. It says that although retail customer confidence has been eroded, research indicates “continuing loyalty” to the brand. The bank is developing marketing activity to support the turnaround plan.

The annual results show the bank posted a pre-tax loss of £167.6m in 2007 and is paying former chief executive Adam Applegarth £785,000 as part of his severance agreement. It is also trimming staff numbers by a third over the next three years.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here