Page 62 - BrandZ Top 100 Most Valuable Global Brands 2014

Section 03 | The Categories
Technology | Telecom Providers

Differentiating brands
Fast growing markets
Action Points for Brand Building
Spotlight
Insight

To strengthen differentiation, BT added European brands, looking to diversify out 1. Be clear
3. Focus on households
content. The UK-based telecom of the commodity constraints in their Fast growing market
purchased the rights to English Premier home markets, looked for proitable consumers select pay- Communicate a clear proposition about A major question for telecoms is who’s
Football, adding over two million new volume growth in fast growing markets. Contract-free pricing the brand’s technical competence,
going to own the household. Gaining
as-you-go options
subscribers and driving up revenue. By purchasing the stake of its local disrupts US market, but deliver it in a memorable way that a family with 10 devices is more of an
The added value helped justify minority partner, Vodafone took control pressuring brands
explains the beneits of the network to acquisition than a user switch.
premium pricing.
of its business in India. It continued to Consumers in developed
the consumer.
develop business in Africa through markets usually pay for mobile 4. Think global
Vodafone offered customers a pricing Vodacom, a subsidiary.
This year’s challenge, at least
phone service with contract 2. Tailor the message
For the major telecom providers that are
package with content that included either in the US, is the availability
arrangements that may include Market the brand to a range of customers now local, regional or even international,
Sky Sports or Spotify. Vodafone’s Meanwhile, South Africa’s MTN continued of telecom service without a subsidies covering the price of from technically savvy trendsetters to the next move is to become global, one
balance sheet strengthened with the to expand in the Middle East and in contract. It will resonate with the phone. With less predictable
$130 billion sale of its 45 percent stake
Africa. The Indian telecom Bharti Airtel is consumers who, as a general income, consumers in fast high-value customers who simply want brand serving customers worldwide.
in Verizon.
among the competitors also providing rule, dislike being locked into growing markets are more likely something that works reliably.

mobile services in Africa, an area with anything. You hate it, but you
to buy an affordable phone
In a category noisy with competitive over a billion people underserved by do it. Once a brand breaks that and pay for telecom service as
claims, the challenge to differentiate is ixed-line infrastructure and Internet.
paradigm and says, you can get they use it. India has the highest
compounded because consumers can be good connection without signing percent of mobile pay-as-you go
skeptical about what they hear. In the US, Movistar beneited from the improvement your life away, the consumer will customers. The US has the lowest,
Verizon promoted its technical expertise in Spain’s economy and the brands pay attention. The big players will but the market is experiencing

in a series of full-page newspaper ads extensive presence in Latin America. A feel enormous pressure. They’ve a period of disruption with
extolling its irst place inish on a variety combination of inancial performance become comfortable with the challenger brands offering pay-
of technical metrics.
and brand strength drove its 56 percent category’s stability. Contracts as-you-go options.
increase in brand value.
were seen as normal. But in the
AT&T made similar points in an future, more consumers will ask, India
Insights: BrandZM BigData
approachable style with a TV campaign China Mobile remained the world’s “If I can’t see the difference, why 80
titled “It’s not complicated,” in which a largest telecom by far, with over 750 pay the difference?”
5
man in a suit sits at a low table with million subscribers. After launching 4G, it
school children and listens to their rapidly expanded its network and Allen Adamson
Brazil
Powerful brands risk
humorous, but logical, explanations of introduced the iPhone. It also offered two Seeming too arrogant
64
Chairman, North America Landor 22
why “big is better” or “now is better.”
low-price handsets under its own brand allen.adamson@landor.com
to increase its share of the 3G market, Russia
The Top 10 telecoms are some of
where it competes with China Unicom the world’s most powerful brands.
and China Telecom, which also are 55
building 4G networks.
11 Consumers rate them high as being
Germany
extremely successful and “in control.”
However, this status comes with a
Competition heated up in Russia, with the warning because consumers also see 41
merger of state-owned Rostelekom and the brands as “arrogant” (only second in 38
Sweden’s Tele2 to create a fourth UK
Success In Control Arrogant
telecom in a market dominated by MTS degree to the banks).
118
118
112
along with Megafon and VimpelCom. 41
Source: BrandZM database 48
MTS continued to leverage its brand and Europe
All brands average = 100
network to develop a bank offering
extensive inancial services.
32
56
Spain

28
71

US
12
62

Contract – Monthly/Annual/Multi-year
Prepaid/Pay-as-you-go

Source: TGI 2013 / Base: All adults 18+
Percentages don’t total 100 because of other
responses or no response. Europe includes the
UK, Spain, Germany and France.

122 BrandZM Top 100 Most Valuable Global Brands 2014
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