Professional Documents
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Telecom Branding in The Middle East and Africa - May 2008
Telecom Branding in The Middle East and Africa - May 2008
May 2008
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of origin.” If the above is applicable in
customer oriented.
Operators in a monopolistic situation As the second player enters the market, As the more operators enter the market,
typically focus on slowly adding incremental price will increasingly become a competitive pricing will not be a sustainable lever to play
functionality in order to make customers priority. Improved customer service and some in the long term. In order to differentiate,
spend more money, therefore increasing degree of customized products and services operators will need to look to their brand’s
emotional appeal. Since there are caps
revenue. Monopolies would regard neither will push the functionality axis slightly higher.
in the functional axis (limited to network
price nor brand as priorities because Branding in this case is usually regarded as a
capabilities) and financial axis (restricted
customers have no other alternatives or mere visual differentiation between operators
by profitability and business sense), a
benchmark in the market brand’s emotional appeal is always limitless
and only capped by the operator and its
communication agency’s creativity
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The process of building a
global telecom brand
“In the deregulated The process of building a global The role of a project management office
markets of today’s brand can be divided into five key (PMO) is crucial in a global or regional
telecom industry, having a stages, from deciding on the branding (re)branding project to hold the different
distinguishing brand may approach to sustaining the brand in the elements together and ensure timeliness
be more important than long run. and consistency of the different
ever as telecom providers • Deciding on the branding steps across all the functions of the
seek to define their places approach operation. Single operator (re)branding
in a complex web of • Developing a governance model efforts can be managed through
supply options. Given the • Defining the corporate identity individual functions, provided a specific
myriad of choices, a brand
• Deploying the new brand department is assigned to manage the
must be substantial,
• Sustaining the brand initiative across the organization.
offering more than just a
logo and a tag line. The
brand must define and Exhibit 2: The best of breed brand examples which show how to create a
deliver differentiators sustainable difference
that represent a
If we take a look at the main pillars of a telecom value proposition, we notice
value proposition to
that it is almost impossible to create sustainable differentiation in any of the
customers.” elements. This is because there exists an upper limit (or best of breed) for
- “The Value of Branding distribution models, products and services, tariffs, handsets, customer service,
in Telecom Today” by Tyco and coverage; whereas a brand is not limited by any such ceiling. Below are
Telecom USA some examples of brand activities that go beyond all foreseeable benchmarks:
• Emirates Airlines signs the biggest club sponsorship deal in English
football history with Arsenal FC worth approximately GBP 100 million
and gained naming rights to Arsenal’s football arena “Emirates
Stadium”
• 52.9% of companies surveyed by the Economist engage in corporate
social responsibility activities to have a better brand / reputation
• Nakeel, the Dubai based real estate developer has committed AED 500
million to fund research and development activity, and promote active
engagement with international experts on the issues of sustainable
development, construction, management and governance of coastal
communities around the world.
– Nakheel has developed three palm islands in addition to a set of
islands representing the world map, off the coast of Dubai
• AT&T killed off the Cingular brand (worth USD 6.6 billion) in order to
strengthen its own name and empower it with a mobile offering
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Deciding on the branding
approach
Leveraging on a Monolithic brands are necessary for
multinational pan-regional operators to develop global brand
brand
equity from all communication activities in
individual markets
significant differences?
Strategic options
Brand ►► Monolithic
Brand
hierarchy ►► Endorsed
architecture model ►► Multiple
Business
►► Product/service divisions
divisions
Business divisions
approach
Product lines
approach
Brand hierarchy model
►► Color coding
Classification
Classification ►► Icons and stylization
►► Service images
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Developing the brand architecture local markets. Every time a company
and differentiated from one another Pros: Maintaining several brands can
architecture includes the brand hierarchy of scale benefits, as they neither have
Due to the vast wave of mergers and higher brand equity. Having multiple
Exhibit 4: Example of multiple branding - Orascom Telecom brand hierarchy (May 2008)
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In order to tackle the above situation, transition efforts a company will lose
the concept of a monolithic brand is some of its customer loyalty. The only
in all markets and across all product expectations, perception, and adoption.
Zain brand and is applying it across all the re-branding history of certain
the “live” and “3G” logos from all of desperation and low credibility. In
their ads to avoid having sub-brands many cases a single operator would
that dilute the overall Vodafone have had several different identities
task especially in cases where existing impossible for the operator to build
brands have high equity. Brand equity brand equity. An example of such an
and changing a brand has deep Syria, having changed its identity six
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Developing a governance model
Brands should be sponsored by the CEO (the ultimate brand champion) to
ensure a consistent and powerful image across geographies
In order to get the necessary attention, According to a study by Harvard
the (re)branding project needs to be Business Review(4), the responsibility for
sponsored by the CEO; not by being global brand leadership can follow four
involved in every decision, but through possible configurations:
acting as an endorser and reference • Business management
point to push the process forward in teams: Whereby each product
deadlock situations and managing category is run by a global
high-level subjective differences. Their category team who work in R&D,
endorsement should be conveyed manufacturing and marketing
through company-wide events within their respective regions.
highlighting the benefits to be gained This team defines the identity
from (re)branding and its implications and positioning of brands in their
on all areas of the organization. There categories throughout the world
needs to be an internal structure in place (i.e. Proctor and Gamble)
(usually set by the Chief Commercial • Brand champions: Senior
Officer or Marketing Director) to executives with other
manage the branding process. responsibilities, possibly CEOs
serve as the brand’s primary
Since branding directly or indirectly advocates and nurturers
impacts all areas across an organization, (i.e. Sony)
it requires synchronized efforts from each • Global brand managers:
function within the company. A steering Branding experts for the company
committee comprised of empowered who lie just below the top
decision makers from each function line management, but usually
should be set up to coordinate project don’t have sign-off authority on
plans and ensure complete internal marketing programs (i.e. IBM)
alignment and progress on all matters. • Global brand teams: Teams
responsible for managing the
This structure should be replicated at global brand consisting of brand
each operating company / country representatives from different
and coordinated by a global project parts of the world, different
management office reporting to the stages of brand development,
group CEO and CCO in the case of a and different competitive
multinational operator. contexts (i.e. Lycra)
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Defining the corporate
identity
Brand positioning Brand positioning should be specific and
should come meaningful with achievable objectives reflecting
from within
the ideology of the operator as a whole
Because a brand represents the image above, the operator should establish
it should truly reflect its ideals. It positioning the new brand, which
regional, and global company strategy and reflects that through highlighting
workshops to select the brand name aspire to it; whereas Orange, France
and derive the brand values. This Telecom’s single brand for internet,
best achieved by involving the Board highlights the power of being “open”
language and not directly related to expect coverage, voice, roaming, and
of an online domain name and ease that goes beyond those basic needs.
target and brand values, and to spectrum either by being too narrow
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(which is the minimum requirement) can get instant access to whatever
or too broad about enjoying life and you like anytime, no matter where
the future (which ends up being an you are or what you are doing. Their
Company positioning or promises can be mapped across two axes, specific vs. generic and functional vs.
emotional. The general criteria for a company promise is that it needs to be somewhat emotional for customers
to aspire to, yet somewhat specific in order to be relevant to the services provided and have an achievable
objective (as opposed to over promising). Being in the middle generally results in a bland brand that is neutral to
everything. Brands that are very functional usually commoditize their offering and their promise tends to reflect
what the service is as opposed to an inspiring call to action that stakeholders can buy into.
Emotional
►► du
Add life
►► Orange
to life
The future is ►► Vodafone
bright Make the most of now
►► Al Jawal ►► Mobinil ►► T-Mobile
With you Communicate from Stick together
►► Mobily the heart
Generic
Specific
My world, My choice
►► Qtel
Let’s connect
►► O2 ►► Etisalat
See what you can do Reach
►► MTN
Everywhere you go
►► Nokia
Connecting people
Functional
Desirable positioning
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Developing the brand
A brand is more prominent in the feeling customers get after interacting
with a company and is best catered to through managing overall
communication and experience, as opposed to colors and visuals
The target audience of Once the previous steps are developed agency has developed such guidelines
a brand must always the creative part of logo development for the Vodafone brand explaining the
include all stakeholders should commence. This is done through “make the most of now” positioning.
in the company - namely a Corporate Identity (CI) agency. This document clarifies the commercial,
A typical gap found in the Middle East the advertising agency develop the
and Africa is the lack of advertising advertising guidelines since they are
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the company - namely employees, on its wet towels, and embedded in Google brand building
that they are the responsibility of HR other examples of sensory branding, has interacted with and most
and investor relations. Such behavior Nokia has developed a signature sonic probably loved. When you take a
branding is an innovative branding visual distinction. This approach has that can be accessed from anywhere.”
methodology that allows the brand generated very rewarding results across Despite not having any traditional ads
Coke bottle Singapore Airlines scent iPhone touch screen Nokia tune
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Deploying the new brand
Deploying brand strategy is a task that requires intricate understanding of
the company strategy and therefore should be developed by the strategy
department and later handed over to an operator’s MarCom team
Most of the work for developing a for developing all of the brand
the actual logo. A brand is built with • A strapline (in a few cases this is
includes the company logo. There are • A launch campaign and strategy
communication
Exhibit 8: Parties involved in the deployment and communication of the new brand
New brand
Advertising agency Media agency PR agency Web design agency DM agency Retail design
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Even though the advertising agency separately with all internal
guardian, there are many additional and the advertising and media
suppliers usually responsible for printing media booking, DM, web content, and
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teams to manage across different segmentation (developed by the
a clear bird’s eye view of the overall Ideally and to help the above process
one discipline only. By managing the should try and assign a regional multi
branding process, the strategy team can discipline advertising group to manage
short and long term PR, DM, and online services. Assigning
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Sustaining the global brand
Sustaining a global brand requires strong alignment between messages
and media channels to ensure optimal communication, distribution
and continuous brand auditing with global consistency
Global brand management requires a maximum effectiveness. This can be
rigid control process involving a single done through:
brand champion from the holding • Brand audits that take place
company to manage the overall brand
regularly for each operation
and approve all applications across the
• Quarterly presentations from each
different markets for consistency, short
operation to the Group Branding
approval times in order not to disrupt
the work flow and increase time to function
The approval process needs to be robust review all the work developed on
To launch the Audi A3 in the USA, Audi allowed people to Last Resort Retrieval was also advertised for months in the
participate in the communication campaign that went as follows: classifieds section of high end magazine (to show that it’s a
A live theft of the first Audi A3 in the USA from the dealership legitimate company).
on Park Avenue in New York. Passers-by would see two people To target video gamers, Audi created a twist whereby a game
break the window and steal the car, security guards running after developer is trying to find the car, and gives live interviews at E3 the
a suspect, the placement of police tape around the crime area, and largest video game expo in the world.
the handout of wanted flyers. To make sure people were able to follow the story, you could visit
The following day at the New York International Auto Show the the blog of Todd who was intently following the action from day 1
car was replaced with signs indicating that the car was missing, and posting all the updates and viral films
and the public would not know how the car was stolen. A few weeks later people would have noticed that the mystery was
The event was covered by bloggers around the world, and solved, and learn why the car was stolen
supported by newspaper ads, billboards, and TV ads asking people
to help find the car and providing response channels. Campaign results include:
The Audi USA website showed that the company contracted a firm • 45 million PR impressions
specialized in the retrieval of high end stolen art named Last Resort • 500,000 story participants
Retrieval. • Over 10,000 leads to dealers
On the Last Resort Retrieval website, there were thousands of • Over 2 million unique visits to the Audi USA website
leads including photos, faxes, phone calls, and emails
Source: Adforum
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Common pitfalls observed in ME and Africa
In order to reach an internal consensus on brand related matters,
regional operators tend to adopt the safe brand option which results in
killing creativity
In many cases telecom brands are Another regional issue that limits
The advertising approach in the region behavior and testing concepts prior to
the lines of “buy now” (to satisfy a strong local flavor in their brand
the marketing teams); or brand ads identity. This is mainly due to the
which are very vague and provide lack of trust in regional corporate
statement as opposed to getting closer not very familiar with. Another lack
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utilization, whereby all campaigns across different brand campaigns,
are developed for mass media and product launches, and in different
specific audiences that the service is Regional players should put more
Key take-aways
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Conclusion
Similar to salad dressing, a strong stakeholders minds and create a form
from other operators offering the same A salad dressing is always developed by
products and services. The brand the chef: (in this case MarCom) never
dressing should have a strong prominent the restaurant manager or any other
aspects of an operator from the sign The salad dressing should fit with the
at the door to the customer care salad context, which is why you do not
corporate culture, advertising, products and hence brands and promises need to
and services, and investor relations. be tailored to suit the local market and
Footnotes
Report.pdf
2. According to Reuters, Preschoolers preferred the taste of burgers and fries when they came in McDonald’s wrappers
over the same food in plain wrapping, U.S. researchers said, suggesting fast-food marketing reaches the very young.
“Overwhelmingly, kids chose the one that they perceived was from McDonald’s,” said obesity prevention expert Dr.
Thomas Robinson of the Stanford University School of Medicine, whose work appears in the Archives of Pediatrics &
research/2001/bran1101.pdf
4. From “The Lure of Global Branding” article in Harvard Business Review (November – December 1999) in which
executives from 35 companies in the US, Europe and Japan that have successfully developed strong brands across
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