Brand Values of Tecno/MTN Partnership

In the world of marketing brand value is synonymous as brand name, based on the idea that the owner of a well-known brand name can leverage on that to generate more money from product aligned to the brand than from products with a less well known name.

Perhaps, consumers seem to believe that a product with a well-known name is better than products with less well known names.

Researches have also acknowledged that celebrated brand forms the most valuable asset a company can boost. The yardsticks used in valuating brand value include (but not limited to): changing market share, profit margins, consumer recognition of logos and other visual elements, brand language associations made by consumers, consumers' perceptions of quality and other relevant brand values.

Invariably, the duo of TECNO Telecom Limited, Africa’s leading mobile phone brand and MTN, a force to recur with in Nigeria’s telecommunications sector, started their cooperation with a favorable offer campaign in the country.

 Analysts believe the partnership will further enhance the acceptability of both the product and service rendered by the brands. Of course business has only two functions - marketing and innovation, implying that the innovative venture will pay-off.

For instance, MTN recently emerged dominant operator in Nigeria’s telecommunications market with 50 per cent market share. MTN at the end of 2011 garnered 41.6 million subscribers.

Nigerian Communications Commission (NCC) had in 2005 released a barometer towards determining a dominant operator. The document relates that a dominant operator is one who controls from 48-50 per market share and may likely pose a threat and hinder smaller operators who don’t have large subscriber base, capital and reach in the same market.

However, Wale Goodluck, Corporate Services Executive, MTN, swiftly responded to that saying the company's dominance of the mobile market would not pose any threat to the market as it was open to working with the regulator and other operators in making the industry a better place.

He said MTN’s submarine cable from the West African Cable System (WACS) is an open access cable and would be available to all players on pay-per-use basis.

Same time, Techno leads Dual SIM Phone market in Nigeria. Chidi Okonkwo, deputy general manager of Tecno Telecom Limited, described Tecno phones as one of the strongest brands in the world of mobile phones with Nigeria as one of its strong holds particularly in the dual SIM range.

Okonkwo said that Tecno is playing a significant role in the low and middle segment range with dominance in the dual SIM range. The company, he continued, started operations in Nigeria about six years ago and has witnessed a tremendous patronage from Nigerians. Presently, the company has opened service centres in eight cities in Nigeria including several other collection centers.

Referring to a clamped- down on its office by officials of NCC, Okonkwo said it was as a result of inadequate information which led to slow processing of the Type Approval which is required by Nigerian Communication Commission(NCC) before commencement of products  sale.

He however assured its customers that all issues have been resolved and business resumes at its Olowu, Ikeja service center.

He said, “We would like to thank our business partners, distributors and other customers for their understanding and support within the period and pledge our commitment to providing top quality mobile communication products to the Nigerian market.
 
As a responsible company, we are aware of the need to continually ensure compliance with the tenets and laws governing the establishment and operations of business in Nigeria.

It is in the light of this that we assure our customers of our commitment to ensuring full compliance with the requirement of all governing/regulatory bodies including the Nigeria Communication Commission.”

He further explained that Tecno will continue to meet market expectation and demand through well tailored research and market intelligence/customer feedback mechanism; which underscores the need for the duo to brazen up the trail in awareness creation about the new born partnership.

 Because consumers' knowledge about a brand reflects how manufacturers and advertisers market the brand. For emphasis sake, brand value or equity is hyped through strategic investments in communication channels and market education.

According to TECNO, its contribution to the join effort will be through her outstanding and distinctive Opera Mini phone, TECNO T638, favorable offer campaign, while MTN provides six wonderful Internet bundles.

Generally, the Techno/MTN strategic investments will over time appreciate and deliver a return on investment. Brand equity is strategically crucial, but famously difficult to quantify.

Nevertheless, the cooperation between these two giants benefits not only themselves by improving their brand equity, but also customers by providing them with favorable service.

Currently, many mobile phone brands and operators are seeking cooperation with each other while they are careful to choose their partners, for the collaboration is crucial to their images.

After a paranomic view, ICT Brand believes it is a wise choice for both TECNO and MTN to choose each other as a cooperative partner following their respective impressive market position in Nigeria.