Friday, January 12, 2007

So the new AT&T is dumping Cingular!

AT&T, which is not really the old AT&T, but the old Southwestern Bell, itself a spin-off from the original AT&T, is going to drop Cingular, which itself incorporates the old AT&T wireless. How confusing! But does it make sense?

Other than the fact that well over $1 Billion has been spent building Cingular as a well-known and differentiated brand, does it make sense to go back to a brand whihc represented "Ma Bell," reliable, but resistant to change? Many argue that AT&T is a name which only means something to older people, whereas Cingular means much more to younger people. Cingular's "raising the bar," tagline is also going to go, as its its distinctive orange logo. I understand that much consumer resesrch has been done to verify that this makes sense. I would be fascinated to see that research.

I wonder if any of the research was used to calculate brand values and to perform a financial payout calculation. If so, it would be unusual. Few companies ever measure their brands on a $ basis. This is a missed opportunity.

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