| 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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