Russian operator MTS was ranked 89th in the Brandz top 100
Last week, marketing analysis firm Millward Brown released its third annual Brandz 100 ranking. MTS, Russia's top mobile phone operator, was ranked 89th, making it the first and only Russian brand to appear in the top 100. The rankings are compiled by comparing a company's earnings, based on its country of origin and market position, with the earnings that come from the company's most loyal customers, which can be attributed to the brand itself.
The ranking shows how much MTS has benefited from its 2006 rebranding, which was widely considered a failure initially. The rebranding of MTS was part of a larger effort by its parent company, Sistema, to develop a recognizable look that would connect all its products -- mobile phones, Internet, digital television and land line services. The company paid Omnicom Group's Wolff Olins consultancy $4 million to develop the brand, which consists of a white egg surrounded by a solid-colored square. The square is a different color for each product. MTS was represented by a white egg in a red square -- a brand the company later discovered was also the logo of the Inskaya Poultry Farm in the Kemerovo region.
The problems with the new MTS brand were not limited to possible challenges of copyright infringement, however. It was also considered inferior to the new brand of rival Beeline, whose rebranding effort in 2005 was largely seen as one of Russia's most successful.
Yekaterina Osadchaya, a spokeswoman for Beeline's parent company, VimpelCom, said the company's new brand -- which features the black and yellow stripes of a bee -- achieved the goal of the rebranding effort: instilling in public consciousness the principles of clarity, simplicity and optimism.
"A successful brand must take on a life of its own," Osadchaya said.
But Osadchaya acknowledged that it was always easy to lose sight of the aims of rebranding, because a company's image is complicated and all-encompassing.
Osadchaya's comments reflect a common misconception among Russian companies about rebranding.
"Rebranding is not a mere change of name or logo. It is a complete change of corporate values, promises, attitudes and feelings about brands and products," said Yelena Georgobiani, a rebranding consultant at media company SPN Ogilvy.
