Gut:
gut
Gut:
main page ðóññêèé contacts site map
R.I.M. Porter Novelli.
CORPORATE IDENTITY

Organization of a mobile phone operator’s communications in conjunction with the replacement of the company’s service mark

Client:  Yekaterinburg Cellular Communications


For seven years, YCC Company worked in Sverdlovsk Region under the Bee Line trademark on the basis of a license agreement with OAO Vimpelcom. The license agreement extended to mobile communications services of the D-AMPS standard. In late 2002 the company opened a GSM network that would operate in parallel with the D-AMPS network. The company decided that it needed a new trademark that would encompass all of the communications services that it was providing. For its part, OAO Vimpelcom also wanted to stop using the Bee Line trademark in the Ural region under license, since it intended to create its own network in the region. It was feared that the mutual decision of the two companies to “redistribute” their trademarks might nevertheless confuse subscribers. Furthermore, Vimpelcom’s stated plans in the local press were interpreted as if Vimpelcom intended to unilaterally "take away" the Bee Line trademark from the licensee, and this would supposedly negatively affect YCC’s business.

After studying the situation, the agency identified deeper problems having to do with the perception of the changes by consumers and potential clients. As long as the Bee Line trademark was being used, the target audiences saw the company as the leader of the local market (MegaFon Company entered the market later, and UralTel was a regional company). However, the forecast for growth of the mobile communications market in the region showed that by creating its own trademark the company might lose this leadership. This process would be inevitable because other companies working in the GSM standard were expected to make Yekaterinburg an arena of competitive struggle among themselves. MegaFon and UralTel, both working in Yekaterinburg, represent nationwide operators (MegaFon directly, and UralTel was acquired by Mobile TeleSystems and was preparing to transfer to this trademark in April 2004). The opening of Vimpelcom’s own network in the region was expected in late 2003. Regardless of their real marketing results, competition between the nationwide operators on the local market was supposed to put YCC, which had lost its Bee Line trademark, in the clear position of a “regional” or “local” company, which might seriously damage its reputation.

A "regional" company a priori has less resources and prospects for growth than a "nationwide" one, and this impression among consumers is especially dangerous for high-tech companies, since their services and capabilities must grow, and consumers expect this (new services, new rate configurations, etc.). A “regional” company a priori has a qualitatively different management system than a “national” one. Consumers are intuitively aware that large companies are managed according to functional models whereas “local” ones are managed according to the "people" principle, which means a different degree of reliability. Any competitive struggle waged by a "local" company against a national one in the eyes of consumers, as a rule, is doomed to failure. Furthermore, the metamorphosis of YCC might be perceived as a fall from a leadership position to that of an outsider. Thus, YCC had not only to create a new trademark to replace the Bee Line trademark, but also create a new marketing model and value base for communications that would minimize the risk of damage due to the danger of losing leadership.

With regard to the creation of the trademark, the task was strictly a matter of design. Creating it was a basic element of all the work, since in the absence of a new identifier all the other tasks could not have been fully accomplished. For this reason the agency developed a plan to create a trademark as the "core" of the overall project and organize events surrounding it aimed at high-level problem-solving. Thus, the strategy was based on using rebranding as the main driver of all the activities and the determinant of the task sequence.