Orange term abstract

Topics: Mobile network operator, Mobile phone, Mobile technology Pages: 6 (2112 words) Published: December 3, 2013

The Orange brand is all about simplifying the mobile user’s experience and relating to human rather than technology. Although being an MNO means that Orange has to highlight technical aspects of its brand as well to highlight the quality of its brand experience, but Orange tends to do that by employing technology as a tool for a better future rather than an end in itself. For Orange, being an MNO is all about enabling people to interact and communicate in the richest ways possible and the entire process is more human than technical. The Orange future is a bright, optimistic future full of fun, simplicity, honesty, and a strong human /relationship touch. No wonder Orange is able to charge premium pricing for its brand.i

Everything Everywhere / EE
After the merger between Orange and T-mobile the first parent brand was named as Everything Everywhere, which was eventually changed to EE. The parent company has given up the idea of terminating Orange and T-mobile, and is instead following a safe model of offering 4G services through the EE brand. However, this also means that an impediment in the growth of a premium brand like Orange has been established and if customers want further growth in the technology /bandwidth they require then they would have to move on to EE which is not an established brand and marketing initiatives by EE have not caught much momentum yet. The proposition for EE is futuristic, but its communication is not as charged and well-presented as that of Orange. EE’s positioning with ‘The new network for your digital life’ is clichéd, and the term digital life does not resonate with the market which has grown beyond the thought of having a separate digital life. These days digital is as much part of life as anything else, and differentiating it is not a viable or sustainable proposition. However, Steven Day, EE’s Chief of Brand and Communications is very optimistic about the brand and goes on to say that: “EE is about enablement: doing things you couldn't do before. It is about this sense of super fast - being able to do things quickly.”ii

Orange Brand value
As per the current brand value of Orange is at $ 18,557 mln is lower than the 2011 value of $ 18, 622 mln. The reason for this decline has been cited as the failure of Everything Everywhere brand as the launch of Everything Everywhere resulted in the decline in new customers as well as a 2% decrease in earnings. iii If we look at the picture Milward Brown sketches for Orange, the situation is even bleaker still. The 2011 ranking for Orange was at 36, and in 2012 it fell down to 50; and the current brand value position is at $ 15, 351 million, far less than T-mobile’s $ 26, 837 million at number 20 which was ranked at number 19 in 2011. However, Vodafone with a brand value of $ 43, 033 million and past two year consistent ranking at 12 is far ahead of all three EE brands.iv The reason for the decrease in brand value might be a recent price hike controversy where Orange increased the price of its monthly contract plans by 4.34% for all the existing customers. This led to great anger and feeling of injustice by the customers who considered it to be a breach of contract as the price is agreed upon while signing the contract. Orange presented a clause in the contract which allowed for such small increments in price during contracts, but the consumer remained irate and vented out their anger in social networks. However, prices for T-mobile packages remained unchanged while customers were very vocal.v This price increase by Orange and subsequent lack of action by Ofcom has led many other MNOs to consider a price increase like this. Three and T-mobile have implemented price increases now and even Vodafone has announced 1.55 pounds per month increase from November 2012. On the other hand, Ofcom is receiving greater number of complaints from consumers after the price hike by Orange and expects more complains from other...

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