AT&T is folding Cingular into its AT&T brand. Why?
A few reasons that come to mind:
1. The Caretaker Managers at Cingular have proven themselves unable to build a brand in the telecom space. That's no big deal. The sector has a huge churn rate precisely because nobody in that space can tell you why their brand is "the only solution." So despite the zillions of dollars burned in attempting to create and sustain a brand, Cingular is throwing in the towel.
2. Further proof is that AT&T is a long-standing brand that was built in the days when people knew how and why they were building brands. In fact, their work was so strong, that like our popcorn and shampoo friends, their management sons and daughters could never equal their parents' work. AT&T stood as a monolith on the American landscape for decades, but in its later days, become known more for its price gouging and sloth than anything else. It became a laughing stock, the lumbering, unresponsive oaf that rested on its laurels while it overcharged its customers. Yet for all that, AT&T was always known for its reliability and stability. The brand still resonates strongly with baby boomers, who probably make the buying decisions for their kids, who grew up with Cingular.
3. Speaking of money, don't forget that despite the above, AT&T has never fallen out of the 30 Dow Industrial Components. Kodak has, but AT&T hasn't. Baby boomers know and remember AT&T because their fathers knew and remembered AT&T. There's just one difference:
Baby boomers have lots of pension money and nowhere to go with it. Which means AT&T's move on SBC and now Cingular is a branding story at its very best: folding weaker brands into a publicly traded, stronger brand can't exactly hurt the attractiveness of a stock's brand.
Overall, it's a sad story on the state of branding in corporate America. There doesn't seem to be anyone out there capable of creating and sustaining a brand, increasing its customers' loyalty and increasing its profitability.
Oh, wait, sure there is. He's a branding expert in Los Angeles. What was his name again?
1. The Caretaker Managers at Cingular have proven themselves unable to build a brand in the telecom space. That's no big deal. The sector has a huge churn rate precisely because nobody in that space can tell you why their brand is "the only solution." So despite the zillions of dollars burned in attempting to create and sustain a brand, Cingular is throwing in the towel.
2. Further proof is that AT&T is a long-standing brand that was built in the days when people knew how and why they were building brands. In fact, their work was so strong, that like our popcorn and shampoo friends, their management sons and daughters could never equal their parents' work. AT&T stood as a monolith on the American landscape for decades, but in its later days, become known more for its price gouging and sloth than anything else. It became a laughing stock, the lumbering, unresponsive oaf that rested on its laurels while it overcharged its customers. Yet for all that, AT&T was always known for its reliability and stability. The brand still resonates strongly with baby boomers, who probably make the buying decisions for their kids, who grew up with Cingular.
3. Speaking of money, don't forget that despite the above, AT&T has never fallen out of the 30 Dow Industrial Components. Kodak has, but AT&T hasn't. Baby boomers know and remember AT&T because their fathers knew and remembered AT&T. There's just one difference:
Baby boomers have lots of pension money and nowhere to go with it. Which means AT&T's move on SBC and now Cingular is a branding story at its very best: folding weaker brands into a publicly traded, stronger brand can't exactly hurt the attractiveness of a stock's brand.
Overall, it's a sad story on the state of branding in corporate America. There doesn't seem to be anyone out there capable of creating and sustaining a brand, increasing its customers' loyalty and increasing its profitability.
Oh, wait, sure there is. He's a branding expert in Los Angeles. What was his name again?
posted by AMT Inc at 10:55 PM
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