The Challenge

In November 2001 mmO2 Plc was demerged from BT Plc. The UK brand BT Cellnet was revamped as O2 in April 2002. It faced a number of key challenges, notably tougher trading conditions, increased competition and the lack of a positive legacy from BT.

In order to revitalise the company it was essential that a strong brand that could compete in a competitive market was created. This brand needed to build rapid awareness and boost effectiveness through ensuring all communications were fully integrated.

Market conditions determined that the primary focus behind communications would be put behind driving sales but the key challenge was to combine a product focused message with a strong, attractive brand to provide long-term benefits to the business.

All activity was designed to promote usage of the network with communications focussing on benefit rather than the product itself.

As such O2 set out to be the most “enabling” brand in the market, wrapping all its messages in a “See what you can do” mantra. The result has been fresh thinking propositions and communications such as Bolt Ons, Happy Hour and Business Zones.

“The O2 launch has been the most successful mobile brand launch that Accenture’s ROI group have seen. Based on numerous studies that we have conducted, the brand is a rare in exceeding our most optimistic targets. The results are a testament to the potency of the brand identity and advertising creative.” Accenture MROI group

The TV Solution

TV’s role in the communication plan has been to drive awareness in partnership with other media.

The “brand manifesto” advert launched in television on May 2002, supported by 8 independent product support propositions – each of which ran on TV, picking off a specific target markets. Television was used in both a “broadcast” and “targeted” manner.

O2 has also aimed to be fresh in its use of television media – often using its deployment of TV to dramatise its message. For Happy Hour, a promotion offering free text and calls between 7-8pm, O2 ran a strand of advertising specifically at this time – telling customers that its Happy Hour had started.

O2 also sponsored Big Brother in 2002 and 2003. Not only did this deliver huge incremental growth to the awareness of the brand but also provided a platform whereby customers could interact with the programme using their mobile phone in new and interesting ways.

The O2 brand has become rapidly established in the market place, due in a large part to the power of the television medium.

The Results

The O2 brand has become rapidly established in the market place, due in a large part to the power of the television medium.
 
Millward Brown tracking showed that between April 2002 and January 2004 O2 television share of voice was 14% (in the mobile telecommunications category), yet it had an effective share of voice of 33%. O2 was punching above its weight.

The TV sponsorships were also effective. By the third series of Big Brother more people associated O2 with TV sponsorship than Coronations Street sponsor Cadbury’s. By the end of the series 78% of 16-34 year olds named the brand as the show sponsor.

The net effect is that O2 has established strong awareness and Millward Brown research shows it has become the most preferred brand in the market despite being consistently outspent by its core competitors, Orange & Vodafone, and having a smaller launch budget than 3 and T Mobile.

“The O2 launch has been the most successful mobile brand launch that Accenture’s ROI group have seen. Based on numerous studies that we have conducted, the brand is a rare in exceeding our most optimistic targets. The results are a testament to the potency of the brand identity and advertising creative.” Accenture MROI group