Telecom's Rebrand Sparks With Potential

Telecom's decision to rebrand to Spark has much much contended. For every supporter, there seem to be at least two critics (or tax payers). However some would argue that to survive in the digital economy, Telecom needed to rebrand. Here's why:

Telecom Needed to Rebrand

Because of hyper connectivity and the rapid development of ways people communicate, Spark needed to adapt to peoples changing needs. The company has shifted focus to mobile networks and many digital endeavors. As the world becomes more technology oriented, Telecom needed to rebrand to emphasise their adaption or otherwise be left behind.

Rebranding Could Shed Negative Perceptions

It is no secret that Telecom had come under public scrutiny over the past few years. After downsizing repeatedly, having broadband cut and being accused of being expensive and vague, many New Zealanders become disillusioned with Telecom. By repositioning the brand as “enabling our customers to thrive” users may be more optimistic about the brand.

Sales and Operating Profit Were Falling

Although Spark was attempting to cut costs quickly, sales were falling faster. Operating earnings were down by 5.8% and net earnings from ongoing business fell by 12.5%. Although rebranding is potentially a risky venture amidst financial uncertainty, It has been largely successful. Following rebranding, Spark’s annual profit almost doubled.

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