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May 21, 2007
AT&T Kicks Off Accelerated Branding Campaign
Beginning today, customers
of the nation's largest wireless carrier will be seeing
more of the new AT&T than ever before as
the company prepares to launch the Apple iPhone, one
of the most highly anticipated wireless products in recent
history. And, according to recent surveys of customers, that's
just fine with them.
AT&T Inc. (NYSE:T) today announced
a new phase of the company's branding strategy. Overnight,
AT&T kicked off this phase by replacing the Cingular
brand with AT&T on all in-store signage, store kiosks,
and point-of-sale materials in approximately 1,800 company-owned wireless retail
stores. In addition, key stores in major markets also
unveiled new exterior signage displaying the new brand.
The
decision to move to this phase of the branding
campaign is based on research that indicates that consumer
awareness of AT&T — one of the best-known, most
durable and iconic brands in the world — is
high and ahead of expectations.
The store makeovers are
also critical to prepare for the late-June launch of
the Apple iPhone, for which AT&T will be the
exclusive wireless provider in the United States. Many company-owned
stores have also installed kiosks promoting the complete array
of AT&T services — wireless, high speed Internet, TV
and home phone — in the company's traditional service
area, and several markets are also planning for a
new AT&T Experience StoreSM, a high-energy format that encourages
hands-on customer interaction.
These broader service offerings are part
of the company's ongoing efforts to integrate its wireline
and wireless businesses and further strengthen its position as
a complete provider of communications and entertainment services. For
example, today in major markets the company is launching
new advertising that aggressively touts the value of AT&T
services to consumers as compared to those offered by
cable providers.
Over the past several months, the new AT&T
brand campaign has had a notable marketplace impact. Consumers
and businesses worldwide consider AT&T as a leading communications
brand and recognize it for meaningful innovation, a commitment
to customer service, high quality and exceptional reliability.
Today,
as a result of the branding campaign, awareness of
AT&T as a wireless provider has increased more than
80 percent. In addition, AT&T's image for being a
wireless provider that is "delivering technology that is relevant
to you," and "offering innovative ways to meet your
everyday needs" is now at a level equal to
that of Cingular before the merger on Dec. 29.
"Consolidating BellSouth and Cingular under the AT&T brand was
based on extensive market research and is proving to
be the right decision," said Randall Stephenson, AT&T's chief
operating officer. "Our branding campaign is performing at and
above projected levels and customer response has been very
positive. We are excited to move into the next
phase of transforming AT&T into the only communications provider
our customers will ever want."
As part of its
branding initiative, AT&T is also now beginning to replace
Cingular with the AT&T brand in voice greetings, on
new customer handsets and handset screen displays and on
envelopes and statements. In addition, exteriors of most company-owned
retail locations are expected to be branded as AT&T
by September, with branding of agent-owned retail stores expected
to be completed by January 2008. Many of the
company's high-profile sponsorships such as "American Idol" and NASCAR
will be transitioned soon as well.
In terms of
advertising, TV, radio and outdoor ads now incorporate transitional
elements related to the AT&T and the Cingular brands,
but AT&T is featured much more prominently. The transitional
phrase, "Wireless from AT&T, formerly Cingular," has begun replacing
the phrase, "Cingular is now the new AT&T," but
the color orange will continue to be associated with
wireless services from AT&T. The "Jack" mark will be
used in a less prominent way in advertising and
customer collateral.
All brand advertising related to this phase of
the campaign will focus on AT&T as a wireless
provider and the company's vision of becoming the complete
provider for the way customers live and work. For
example, a broadcast TV spot now airing in the
company's 22-state local service territory, dubbed "Russian Dolls," highlights
the addition of wireless service to the AT&T portfolio.
The
spot uses a high-tech nesting Russian doll as a
metaphor for the company's complete and seamless integration of
TV, high speed Internet, home phone and wireless services.
Radio, outdoor and online advertisements also reflect the move
to make the addition of wireless, the "complete provider"
message, and AT&T in general, more prominent.
"The newest
phase of our branding campaign communicates that AT&T is
a leader in wireless as well as in other
communications and entertainment services," said Wendy Clark, senior vice
president — AT&T Advertising. "Our goal is to let
the public know that AT&T offers perhaps the best
choices, values and convenience in the marketplace across our
extensive portfolio for the communications services they want and
need."
AT&T will also announce this month that it has
extended its reach in its 13-state pre-merger local service
region by offering AT&T Yahoo! High Speed Internet —
Business Edition at more than 740 wireless retail stores.
Customers can also see live demonstrations, and order AT&T
Yahoo! High Speed Internet service and, where available, AT&T
U-verseSM TV or AT&T HomezoneSM TV services at more
than 375 wireless stores. AT&T also sells AT&T Yahoo!
High Speed Internet service, together with traditional telephone service,
at more than 900 company-owned wireless stores, and AT&T
Yahoo! High Speed Internet service on a stand-alone basis
at more than 1,000 agent-owned wireless stores.
In addition
to AT&T's wireless/wireline integration initiatives, the BellSouth brand transition
campaign has also been very successful. According to weekly
research numbers, unaided advertising awareness of AT&T in the
former BellSouth region has increased sevenfold.
As all operations
are moved under a single brand, AT&T expects to
realize related synergies with an estimated net present value
of approximately $2.8 billion.
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