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February 18, 2004
Brand Busting
Posted by Carole Matthews at 12:34 PM
The recent news that Cingular is making a serious bid to purchase AT&T Wireless is no surprise. It was only a matter of time before more consolidation in the wireless arena occurred. This latest news, as reported in today's Wall Street Journal (registration required), however, could make the connection consumers have with Ma Bell fainter. If the deal does go through, Cingular plans to phase out the name AT&T.
It was a surprising statement to many wireless marketing experts, since Cingular would be hanging its hat on a name that's less than four years old and walking away from the 118 years of brand recognition that American Telephone & Telegraph Co. (AT&T) has established. On the other hand, some marketers feel AT&T is a bit "frozen," and that Cingular's own orange "Jack" is a more modern brand.
Which brand is bigger? Would phasing out the AT&T name be a smart move for Cingular? Or should the company try to leverage the tried-and-true AT&T in some way?
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Just personal opinion but there aren't any Cingular commercials or taglines that come to mind...while I have greatly enjoyed just about all of the Reach Out commercials....now this may be just a matter of keeping the same ad firm, however, it will be a little weird seeing Reach Out ads ending with a Cingular logo.
I feel the opposite. I remember lots of Cingular commercials. customizable plans and especially "rollover" minutes. I don't really memeber any AT&T commercials. I support the decision to keep the Cingular brand. I think it will really work well in the younger demographics.
I totally agree with James Paden. How can you forget that orange, dancing logo. A couple of years ago, marketing in New York City for Cingular was heavy. Incorporating NYC land marks, streets and subway stations into their ad campaign left a signoture embed in our minds. And lets not forget, as James mentioned the "rollover" minutes. The Cingular brand is the new way. Being in that "younger demographic" asembly myself, I feel that it will continue to do well with our generation. Look out Sprint. Cingular is about to "roll you over".
I totally agree with James Paden(2/18/2004). How can we forget that orange, dancing logo. A couple of years ago, marketing in New York City for Cingular was heavy. Incorporating NYC land marks, streets and subway stations into their ad campaign left a signoture embed in our minds. And lets not forget, as James mentioned the "rollover" minutes. The Cingular brand is the new way. Being in that "younger demographic" asembly myself, I feel that it will continue to do well with our generation. Look out Sprint Cingular is about to "roll you over".
I can hear you both...now, however, another factor to consider is our aging population...once the old folks outnumber the youngsters 2 to 1...do they relate more to The New Kids on the Block (Cingular) or The Stones (ATT).
I considered that, Cliff, but didn't mention it.
I think additional points to consider is whether or not the aging population will accept cell phones as a whole. They may by the larger population, but are they really the larger market?
Secondly, consider this. When an "old folk" needs a new computer or cell phone...who do they ask for advice? Their friends, their kids, their financial advisor? My guess is their kids. I don't know how big of factor this plays, but I think it's worth thinking about.
Yeeeahd, it's csool
I think they need to try to leverage the best points from both, and I don't think the Cingular brand can do it, nor can the AT&T brand. Cingular has had a poor reputation for coverage, (Roaming charges will eat you up!)and doesn't seem to have the experience to solve problems. The new kid on the block is rash and boastful but hasn't proven that it can do what it says. AT&T has better coverage and better plans but has a callused "care-less" reputation. The old fogey has the ability to stand behind what it says, but is to old and tired to take action. (Too much of a stick-in-the-mud!)
Cingular will do just fine. On the contrary, the name is well known nationwide. They were second largest to Verizon and now they are the largest with this acquisiton. AT&T does not have good coverage and they charge roaming on nation plans depending on where you are. AT&T is known but in the last few years have not lived up the their reputation; they do not have a good management team. Cingular on the other hand has the money and strength of two mother companies to stand behind it. They have the largest GSM coverage in the U.S and still growing.
Cingular can do it - if they keep in mind a few things:
- Getting rid of AT&T's bad name in cellular coverage (I'm thinking my area of North East) and showing they are mature enough to be a reliable name in cellular service. They should do this by building a strong ad campaign that focuses on reliability and customer service.
- Reinvent their brand identity to show they have evolved into a mature company that can be relied on for quality service and coverage.
- Make sure that the buyout is publicized sufficiently. It's a real credibility booster and makes them automatically 'bigger and better' than AT&T.
what about mobile phone radiations?
especially for the youngsters, talking all day long
may be very harmfull, we may see in the next years brain diseases we never heard of and lawsuites that would remind of cigarettes diseases...
brgds
jackie
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