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“Silly” remark by Everything Everywhere chief lets slip truth about T-Mobile brand

October 26, 2011

Dear Mr Swantee

How do these female Telegraph journalists do it? Trap you into saying things you didn’t really mean to say, that is? Not many months ago, Mr Cable was silly enough to tell two such hackettes that Mr Murdoch’s empire was thoroughly evil and that he was going to put a stop to it, just when he was supposed to be impartially adjudicating the self-same Mr Murdoch’s bid for BSkyB.

Now you, too, have been very silly. Or, to be more precise, you have been caught rubbishing Everything Everywhere, the brand name of the company where you are chief executive.

Here are the very words you used, as reported by the delightful Katherine Rushton:

“Everything Everywhere is not a brand, it’s a silly name with a stopping effect”, he said, although he maintained it was useful for stores which house the two mobile brands.”

Now I know what you’re going to say; in fact what you have said: just like poor old Vince, you were quoted out of context. His context was entrapment; yours we’re going to work on a bit – just in case there’s any misunderstanding.

The first thing I’d like to make clear is that we are all right behind you. Not only do we admire the candour of someone in so senior and responsible a position voicing what we have all long since judged to be a self-evident truth (just, as it happens, we did with Mr Cable). We are also quite prepared to accept that journalists, with their obsession for compression, tend to miss the bigger picture.

I expect, when you were describing your corporate brand as “silly”, what you were really doing was employing a bit of time-honoured rhetorical licence: using the part as shorthand for the whole. It’s not Everything Everywhere the brand that is “silly” with “a stopping effect”, but the brand strategy behind it. That, surely, is the bigger picture that got left out of the context.

Right from the beginning, that brand strategy has been misconceived, hasn’t it?

I mean, the initial idea was all right as far as it went: putting together 2 failing UK mobile telecoms brands in one brand-new holding company and, overnight, transforming yourself into UK leader by customers, ahead of those snake-oil people at O2. What a clever sleight of hand, and one that avoided Orange and T-Mobile experiencing serious difficulty with the competition authorities into the bargain.

The trouble is, your predecessor Tom Alexander wasn’t empowered by his twin masters, France Télécom and Deutsche Telekom, to take the idea any further – and you were left to clear up the mess that resulted. 50:50 ventures never work, do they? Still, you’ve done what you can, within the agreed terms. You’ve swept away all those unnecessary backroom boys and girls, stripped out excess infrastructure, rationalised the shops, brushed up the margins, cleansed the boardroom of useless, nay-saying, former T-Mobile executives and ploughed on with a leaner, meaner Orange team. Yes, Sirree, having worked at HP before you joined France Télécom, you know just about everything there is to know about consolidating tired, low-growth companies.

But one thing they haven’t let you do is to slay the elephant in the room. Yes, I know what you said when you took over earlier this year:

“The T-Mobile customers want a flexible payment and usage system. The Orange customers want a predictable amount paid every month. There is a clear difference.”

But the justification for that difference is becoming less and less apparent, isn’t it? Look at your latest, Q3, figures: pre-paid, plummeting; contracts up. T-Mobile’s days as a UK brand are surely numbered.

Truth to tell, Orange is and always has been much the stronger brand; better serviced too. Maybe, if there hadn’t been all that fudging at the beginning by your corporate masters, then the figures would have been a lot more convincing than they are today. And your brand hierarchy a lot more coherent. Without T-Mobile to worry about, poor old Tom would never have had a nervous breakdown trying to justify the vacuous sticking-plaster of Everything Everywhere – as the best of all branding in the best of possible worlds, when it patently wasn’t.

No wonder you let slip your frustration with a “silly”, unguarded remark.

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Bad news for Rebekah Brooks, but good news for BSkyB’s Jeremy Darroch

July 6, 2011

Jeremy Darroch, chief executive of BSkyB, now looks in an even more powerful position to inherit the News International mantle of power (should he wish to) than when I flagged up his significance to the Murdoch empire in my last Marketing Week column.

Rebekah Brooks, NI’s current chief executive, is terminally damaged goods, in the wake of ‘Millygate’. Not to mention ‘Jessica-and-Hollygate’ and ‘7/7-gate’.

For the moment, of course, it’s Andy Coulson, ex-News of the World editor and David Cameron’s former director of communications, who has been thrown to the lions. Thanks to some NI emails which have mysteriously surfaced just in time, Coulson is now a proven liar. He procured, or authorised procurement of, paid information from the police while he was News of the World editor – something he has previously strenuously denied. And for good reason: it is quite illegal.

It’s an astute, if cynical, sacrifice, and proves the Murdochs are still thinking on their feet. Coulson’s disgrace tarnishes both Cameron (by association – after all, he picked Coulson, despite his dodgy reputation, and then backed him to the hilt in his hour of need) and Knacker of the Yard (assistant commissioner John Yates, once the officer in charge of investigating the phone-hacking scandal at the epicentre of the Murdoch crisis, who is now looking woefully ‘under-informed’ and incompetent, after previously vociferously denying the merest scintilla of police complicity in the matter).

Even so the Coulson gambit is, at best, a delaying tactic. It will make our leading politicians and policemen tread a little more carefully, but it will not prevent them from taking decisive action. Public opinion is now too inflamed for them to do anything else.

Inescapably, the smoking gun is pointing at Brooks, née Wade, and editor of News of the World when – it now emerges – NI’s private investigator of choice Glen Mulcaire was hacking into the phones of Milly Dowler’s distressed relatives. She says she knows nothing about it. Do we believe her, any more than we believed Coulson’s protestations of ignorance? I’ll leave that one hanging in the air.

Ordinarily, implicated NI and former NI executives have been able to take refuge in prevarication, in the sure and certain knowledge that rapidly abating public interest will soon allow them to emerge from their burrows relatively unscathed. This crisis is different.

It has an unprecedented commercial dimension to it. Top advertisers, led by Ford, are boycotting News of the World, and that really will hit the Murdochs where it hurts. Ford is the single biggest advertiser, contributing about £4.5m annually to NoW’s £40m display advertising revenue. Halifax (owned by Lloyds Banking Group) has now joined Ford. Other major advertisers believed to be considering their options are T-Mobile/Orange, Vodafone and nPower. The danger, from the Murdochs’ point of view, is that this commercial contagion spreads to other NI newspapers, such as the Sun – which Brooks also edited. It could easily do so, given a swelling social media campaign goading consumers to boycott advertisers who refuse to align themselves behind Ford. (There’s a useful live update on the brands boycott at Marketing Week.)

All of which may well rapidly result in Brooks becoming surplus to NI requirements.

OK, you say, but what has this got to do with Jeremy Darroch? I’m coming to that. Whatever the backwash from the phone-hacking scandal, it will not prevent culture secretary Jeremy Hunt from giving his blessing to Murdoch-vehicle NewsCorp’s acquisition of the 61% of BSkyB it does not already own. Legally, a challenge to that assent is now well-nigh impossible. Indeed, Hunt and the Government would probably be on the receiving end of a writ it they were obstructive.

Let’s assume for a moment that the deal is done, that the Murdochs have pacified BSkyB shareholders with an eye-watering amount of money and are now the proud possessors of the rest of the organisation. What are the repercussions for NewsCorp and in particular its UK-centric arm, NI, in the wake of a full takeover?

BSkyB is one of the UK’s most powerful companies with, just to give the flavour, a marketing communications budget of £1.2bn a year. It is phenomenally cash rich. One estimate reckons that, once acquired, it would contribute 30% of NewsCorp’s cashflow. Like the Murdochs’ newspapers, it is UK-centric. Unlike the newspapers, it is highly profitable. Unlike the newspapers again, it is still a dynamic growth business, which has made good use of product innovation.

In short, it would be the jewel in NI’s crown. Who better to manage that jewel in the new, enlarged organisation – a man of untarnished reputation who intimately understands subscription TV; or Brooks, with her yesterday’s tabloids background?

Of course, I have no idea whether Darroch would actually be interested in such a proposition. He may well take his money and run. But it’s worth thinking about, isn’t it?

UPDATE 17.30 – 7/7/11: So, The News of the World is no more. The Sunday edition, shorn of advertising, will be the last in the newspaper’s 168-year history. Nothing could more graphically illustrate the gravity of the crisis engulfing NewsCorp than that its chairman and chief executive Rupert Murdoch should take the drastic step of closing his most profitable newspaper and the one – to boot – he started out with back in 1969. The suspicion lingers that a skeleton NoW staff will be retained to flesh out a 7-day version of The Sun. “The Sun on Sunday” has long been rumoured as a cost-cutting project. How typical of Murdoch that he should turn a disaster into a publishing opportunity.

UPDATE 7/7/11: Determination not to be the last advertiser at the News of the World has now reached frenzied proportions, as Vauxhall, Virgin Holidays, O2 (£1m), Boots (£800,000) and  Sainsbury’s stampede to the exit with Ford, nPower and Lloyds Banking Group. Morrisons next, I suspect. Will anyone be buying the paper anyway? Newsagents expect a boycott on Sunday.


Tales of the Recession. Part 3: The Epica Awards

December 16, 2009

Whether consciously or not, our collective verdict as judges at this year’s Paris-based Epica European advertising creative awards was drenched in la morosité – the all-pervading gloom oozing out of this recession.

To be sure, we had less to play with than usual in framing our choices. Entries were down 37%, marking the steepest decline in the awards’ 22-year history. But it wasn’t just the industry that was acting defensively. Each of our winning choices seemed to be tinged with an element of nostalgia for better times, concern for traditional craft rather than the avant garde and adventurous, or marked by an emphasis on practical solutions to the bleakness around us.

The film Epica d’Or, for example, was won by Saatchi & Saatchi London for T-Mobile’s “Dance”. It was supposed to be a joyous hoe-down dedicated to connectivity, but could equally be interpreted as a St Vitus dance by a moribund brand about to be swallowed up by Orange (in the UK, at any rate).

The press Epica d’Or was won by DDB & Co Istanbul for Dank’s second-hand furniture campaign. Need I say more about the undertone?

The outdoor Epica d’Or went to  Euro RSCG Dusseldorff for its Citroën “Cornering Lights”. Although the ad trumpeted technological innovation, the graphic treatment was solid and traditional (nothing wrong with that, of course).

Then we come to the integrated campaigns category, which was won by Heimat Berlin for Hornbach’s “House of Imagination”. Hornbach is a leading German DIY chain, where business must be booming right now.

And finally, when all else fails, never forget the power of prayer. The interactive Epica d’Or was awarded to Forsman & Bodenfors, Gothenburg, for the Svenska Kyrkan (Swedish Church) Campaign for Prayers website.

Recessions often prove to be turning points in long term trends. And here, too, the results did not disappoint. DDB was knocked from its perch as top advertising network for the past four years by Euro RSCG, which had 7 winners (DDB had 6). Leo Burnett and Ogilvy tied for third position with five each. BBDO and Saatchi had 4 apiece.

Another sign of changing times: Britain fell way down the ranking of winning countries, to fourth. It is the first time we have finished outside the top 3 in the history of the awards. A portent, or just a blip? We’ll have to see.

Just for the record, Germany was the most successful country, with 18 winners, and also accounted for the most awarded agency, Serviceplan Gruppe Munich & Hamburg. France came second and Sweden third. For more on this year’s awards, click here.


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