Page 20 - Sphere No.7 (Oct 2002)

SPHERE
18
B R A N D I N G
ALL IN ONE; ALL AT ONCE
Henry Ford famously said: “People can
have the ModelT in any colour – so long
as it’s black.”
Mr Ford’s unbending approach to
that immortal brand seems a far cry from
multicoloured, multifunctional, multicul-
tural 3.
But Doug Hamilton believes there
are quite a few similarities between what
Henry Ford did for the automobile in the
20th Century and what 3 will do for
mobile communications in the 21st.
“Ford didn’t invent the engine,
dynamos, starter motors, refine petrol or
tarmacadam or any of the other elements,
but he put them all together and made it
possible for ordinary people to enjoy
something that was previously out of
their reach.”
T he Orange experience left competitors green with envy.
Some wags dubbed the new brand a lemon,but it went
on to become a sweet success for all involved.
In 1994 Hutchison contracted branding consultancyWolff Olins
to create and manage its nascent mobile telecoms (2G) brand.
With Doug Hamilton charged with devising the new company’s
identity Orange re-wrote the branding rulebook,wrong footing
competitors and emerging as the benchmark in the sector.
Notwithstanding its subsequent triumph,the radically differ-
ent approach of Orange was seen as a tremendous risk at the
time of launch.
The name and visual identity had no apparent link with the
worlds of technology and communication. The brand’s appeal
was emotional as well as rational,speaking more about the cus-
tomer than the product.
The brand identity,name and the visual style all created high
awareness and customer sign-up levels in record time.After only
two years,Orange was better recognised than any of its rivals.
Thus Orange became the benchmark for the marketplace and
put the squeeze on competitors to rethink their positioning
strategies.
When the company was sold to Mannesmann in 2000 it
fetched US$14.6 billion,giving Hutchison the financial clout to
invest in next generation 3G.
ORANGES & LEMONS
more
than
a number
And, in spite of his conservative
approach to colour, Henry Ford did
not put the brakes on development.
Motorists now have air-con, suspension,
ABS braking…
“Similarly, Hutchison didn’t invent
the technology, but is putting it together
like it should be,” explains Hamilton.
“As [Group Managing Director]
Canning Fok says:‘By the time we’ve fin-
ished, the measure of our success will
simply be how many people can’t imag-
ine life without 3’.”
3’S COMPANY
3G is an entirely new product category,
so it was natural and inevitable that a new
brand would be born. In corporate terms,
the launch of the 3 brand is equivalent to
welcoming and naming a new addition
to the family.
Over the past three years Hutchison
has positioned itself as a serious player in
this high-risk, high-gain marketplace.
Starting from virtually zero, the Group
invested widely in the 3G sector.
Cash-rich from the 1999 sale of its
2G business,Orange, for US$14.6 billion,
the company began by purchasing
UMTS spectrum licences, first in the UK
then in Europe and further afield as they
came to market.
Reflecting the exuberance in the
telecoms sector at the time, prices began
to skyrocket as 2G players, eager to be
part of the “next big thing” pushed the
bidding into the stratosphere. It was then
that Hutchison, reasoning that prices had
gone too high, pulled out of the German
auction and helped restore some coher-
ence to the marketplace.
When the dust had settled it turned
out that the Group had shopped wisely,
paying between 20% and 50% less per
MHz than its rivals.
Where it had won licences, the
Group moved quickly to begin building
the infrastructure that would make it all
work.
“We have a ‘Rolls-Royce’ network
operated by ‘Rolls-Royce’ companies,”
Mr Fok observed.
The company now has a presence in
nine nations on four continents. The
footprint currently includes Australia,
Austria, Denmark, Hong Kong, Ireland,
Israel, Italy, Sweden, and the UK.
In the 3G arena, all are unproven.
From a standing start, 3 is taking an early
lead in building an efficient infrastruc-
ture, creating a powerful brand and
rolling out a succession of compelling,
differentiated services that will win a
loyal customer base.
In time, 3 will become a coveted
brand that is strongly identified with
specific services and qualities of the
company.
In turn, the company will deliver on
its promise to be the best in the category.
The brand will thus evolve into a
valuable commodity in its own right
with a measurable worth. 3 will come to
mean more than a number.The symbol
will take on an added new dimension.
This is 3’s strategy.
The stage is now set for a brand
new show.