Sprint seeks a fresh marketing strategy - Creating a memorable brand image is one goal for the company in the ultracompetitive telecom field

Sprint Nextel Corp. is pulling the plug on its current marketing strategy, saying it needs a fresh approach, and perhaps a new agency, to address growing competition.

Toward that end, Sprint, which spends $1.6 billion in marketing, notified the two agencies that handle the creative aspects of its advertising campaigns -- TBWA\Chiat\Day for consumer advertising and Publicis & Hal Riney for business-to-business -- that it's putting those accounts into review.

TBWA was Nextel's agency and Publicis was Sprint's agency when the two companies merged in 2005.

Sprint spokeswoman Mary Nell Westbrook said Thursday that no decision had been made whether to include the incumbents in the review, but added that the two accounts will be consolidated with one agency. Westbrook said Sprint hopes to have a new agency named and in place by the end of the first quarter.

"One-and-a-half years post-merger, we need some strategies that address the competitiveness in the industry," said Westbrook.

"Obviously, consolidating with a single agency of record makes sense, but it's really about doing the right thing for the business."

Sprint has had at least two marketing taglines since it acquired and merged with Nextel in mid-2005. The first was "Yes you can." Its current tagline, "Sprint. Power up," is meant to convey that Sprint is putting power back in the hands of the consumer.

That campaign, which will run its course, features actor Ron Livingston. The introductory spot from that campaign was named by Adweek as one of the best spots in the month of October.

But creating memorable advertising isn't a problem for Sprint or any other telecom company. It's building a brand, said Los Angeles-based brand consultant Rob Frankel.

"You can't describe them as a brand, which is why they have such a high churn rate," said Frankel, noting that all players in the telecom sector compete on the same attributes.

"It's what I call the lemming factor. One guy makes a move and everyone copies it -- no one is distinguishing their brand."

Sprint's customer churn rate is a major concern. It's a problem that Sprint's top brass acknowledges, including chief executive Gary Forsee in a third-quarter conference call with Wall Street analysts.

Efforts to address its churn rate and customer loyalty problems include a new hybrid phone. But A.G. Edwards analyst Kent Custer noted in a third-quarter report on the industry that Sprint needs to step up its branding efforts.

"We believe the Sprint brand message is weak compared to Cingular (more bars, fewest dropped calls) and Verizon Wireless (can you hear me now?)," he wrote.

The telecom industry is fiercely competitive. According to TNS Media Intelligence, for the nine months that ended Sept. 30, the category collectively spent $6.8 billion, up 13.8 percent from the same period the prior year and leading all categories in spending.

"Sprint and all the others can spend as many millions and billions as they want, but until they have a strong brand identity, it's not going to work," Frankel said.

Over the past number of years, Sprint has tried a variety of advertising pitches.

Prior to Sprint signing up Livingston -- an actor perhaps best remembered for breaking up with "Sex and the City" character Carrie Bradshaw via a Post-it note -- the wireless company used actor Brian Baker clad in a black trench coat. Baker became sort of a cell phone superhero, assuring Sprint customers that the company would be there for them.

The intent was for Baker to not become the face of Sprint, but response from consumers, women in particular, landed Baker in 2001 on People magazine's list of the sexiest men.

Before Baker and Livingston, actress Sela Ward had a short-lived stint as the face of the company, following an eight-year run by actress Candice Bergen, who touted the company's long-distance services.

One of the attributes that Sprint successfully pushed in its advertising for many years was the clarity of its network, personified by the "pin drop" at the end of its commercials.

"The clarity of data transmission is no less important today than it was years ago, and perhaps is more important," Frankel said.

Sprint says it's completely open to hearing about new ideas and strategies for brand building and marketing.

"Something to make us ultracompetitive," Westbrook said. "It's really about just getting competitive and getting a fresh approach -- we've got to maintain some competitive momentum."

Sprint shares closed Thursday at $19.65, up 61 cents.

 

 
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