Unending Brand Metamorphoses: Celtel Changes Name in August - 2008-06-16

Having enjoyed a year's respite to savour the benefit of the transition to Celtel, new owners, MTC Zain, is ready to implement new name change in Nigeria in alignment to its global stance reports O'lekan Babatunde tracing the brand's unending metamorphoses

The Celtel brand in the country and subscribers on the network may have to contend with a new brand name for their network within the next few weeks if findings by M2 is anything to go by.

According to M2 investigation, the Celtel brand will cease to be the network's trading name in the country no thanks to a number series of acquisition and trade alliances between the network and Zain, the new owners of the Celtel brand.

M2 has exclusively reported in its Vol. 3 Issue 16 of September 30, 2006 edition that Nigerian subscribers on the network were saved another name change especially in view of the incessant name changes that had been the lot of the brand which started operation in the country as Econet at the inception of the GSM telecommunications technology in the country in 2001.

Quoting from the report, “subscribers on what used to be the Econet, the Vodacom, Vmobile and currently Celtel were penultimate week saved from another change in the network's brand name as the global operator of the Celtel brand, MTC becomes Zain”. However, the new brand owners and the Nigerian management of the company, realizing the inherent damage which could be done to the brand in the Nigerian market if it goes on to implement same policy immediately in the market, agreed to shelve the move in Nigeria and continue with the Celtel brand name.

The decision was brought about by the fact that the brand which has suffered the most inconsistent name change in the telecoms market in particular and the Nigeria market in general has just emerged from a new name change which only a few months back culminated in the Celtel brand name.

Therefore, the move was to allow the brand, its subscribers and the market as a whole recover from the change before being burdened with another change. So, effective from September 8, 2007, Zain became the new corporate master brand name for the MTC Group's operations in Middle East while it summarily retains Celtel brand name African market especially in Nigeria and Kenya .

MTC Group which operates mobile telecom service in 21 countries in the Middle East and Africa, also in September, 2007 hinged its decision on “strategic reasons”.

According to the report the “strategic reason” excuse put forward by the parent company was particularly pleasant to the Nigerian and Kenyan operations which only rebranded to Celtel less than a year ago.

According to a survey by M2, the new name would have posed some problems for the Nigerian market as the brand has witnessed about four metamorphoses within about 6 years of initial entry as Econet into the market at the inception of GSM operation in the country.

However, the M2 report also noted “this does not totally preclude Celtel Nigeria from taking on the new brand name as industry analysts claim the grace period being enjoyed now will only last for a short while”. As it's main objective is to allow the brand owners recoup part of the massive investment put behind pushing the new Celtel brand name.

Speaking on the new name, Zain Group's Chief Executive Officer, Dr. Saad Al Barrak explains "Zain will bring together all our operations under a single, strong and unique identity. We believe it is the optimal platform upon which we can build a global brand with the ultimate goal of better serving our customers. It will propel the Group towards becoming one of the top 10 global mobile telecommunications companies in the next four years".

Apart from the master corporate brand which has been changed to Zain, other MTC Group operations in the Middle East and the Sudan have been rebranded as Zain.

This also affects the Group's operations in Kuwait and Bahrain , (both formerly called MTC-Vodafone); in Jordan (formerly Fastlink and Sudan (formerly, Mobitel). One of its latest operations in the Kingdom of Saudi Arabia came on stream as Zain early 2008.

The Zain brand which Celtel will effectively change to on August 1, 2008, has as its theme: "A Wonderful World”. It capture the energy, inspiration and diversity of the Group's customers, employees and other stakeholders.

The new logo and its colourful identity is explained to reflect the Group's freshness, boldness and vitality with the 'swirl' communicating the idea of an aura, something important to human life echoing growth, progression and diversity.

Though, the new name Zain may not mean much to Nigerians, but protagonists are also comfortable having found it to have positive connotations across the global marketplace. Tito Alai said the group's chief commercial officer, speaking on brand architecture explains that in Arabic, for example, Zain means "beautiful, good and wonderful" while in Latin it means "dark horse".

"Zain tested extremely well among cross sections of the potential global audience and with the planned investment will become a formidable brand within a short period," Alai assured.

However, with the rising importance of the Nigerian subscribers in the vast telecom industry, how long can the brand which commenced operation as Econet some seven years ago, continue to sustain the interest of its Nigerian subscribers? The unending metamorphoses could become burdensome to the network and the subscribers suggest the industry watchers.