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ZK lost Bharti Airtel deal to rebrant Zain to Airtel in Africa

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by Geza Ulole, Jun 24, 2010.

  1. G

    Geza Ulole JF-Expert Member

    Jun 24, 2010
    Joined: Oct 31, 2009
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    Ogilvy Africa clinches deal to market Bharti Airtel

    [​IMG] Zain Africa CEO Chris Gabriel (right) and Zain Kenya managing director Rene Meza at a press conference. Bharti Airtel completed the acquisition of Zain’s mobile operations on June 8 for Sh856 billion ($10.7 billion). Photo/PHOEBE OKALL
    By Kui Kinyanjui

    Posted Wednesday, June 23 2010 at 00:00

    Bharti Airtel Limited has appointed Ogilvy Africa as its marketing services partner for Africa in one of the largest advertising coups seen locally in the last two years.
    The deal is being seen as the first indicator of the synergies that both Scangroup and Ogilvy Africa plan to leverage as they move to complete a merger that will combine the reach of the former competitors across the continent.
    “The role will be to bring the Airtel brand to life in every one of its African markets, and we have brought together a very strong integrated marketing team (Team Airtel), which is dedicated to this task. This deal represents a further significant step forward for Ogilvy and Scangroup in Africa,” said Mike Young, Ogilvy Africa CEO.

    Value of deal

    The announcement follows the completion of Airtel’s acquisition of Zain Group’s mobile operations in 15 countries across Africa earlier this month.

    Although the value of the deal is unspecified at this time, the deal will hand the two media firms one of the largest advertising accounts in the region as the mobile firm gears up to rebrand within the coming months.

    Zain’s former owner, Mobile Telecommunications Company, has allowed Bharti the right to maintain the Zain identity and brand in its 15 operations for an interim period on a temporarily basis, but it’s likely that a new brand— Airtel —will be unveiled in the next three weeks.

    The company will also be announcing its management structure for the African operation, as well as introducing Jayant Khosla as its new chief executive officer Anglophone, Zain Africa.

    This will be Mr Khosla’s second engagement in Africa, as he formerly headed Essar Telecom’s Kenya operation.

    Mr Kholsa will be responsible for overall strategy and guidance to the Anglophone countries to lead them to Revenue Market Share (RMS) leadership, and is expected to be instrumental in the brand’s redesign.

    Rebranding from Zain to Airtel will require monumental expertise and brand craftmanship and is likely to be a million-dollar affair.

    The last time the mobile firm underwent a brand change was in 2008, when it changed its identity from Celtel to Zain at a cost of $28 million.

    When the same company was making the transformation from KenCell to Celtel in 2004, the exercise was estimated to have cost $30 million.

    Bharti’s search for a pan-African agency meant has that it had to sever ties with ZK Advertising, a smaller pan-African firm that has handled much of the company’s brand business since it’s purchase by Celtel in 2004.

    Within local media agency circles, the deal has rekindled memories of the last scramble for such a lucrative advertising account in 2008, when Telkom Kenya was facing a rebrand.

    Then, as now, a smaller agency lost key elements of Telkom account to Ogilvy, which followed up on the win with its pitch for Zain’s media buying business across Africa.

    Bharti’s search for a comprehensive agency was informed by the fact that the two firms offer the Indian telco the most seamless agency network on the continent.

    “Given their breadth and depth to support Airtel right across the African continent, we believe we have the right partner to successfully take forward our brand strategy,” said Manoj Kohli, CEO of Bharti Airtel.

    The deal will see both Ogilvy Africa and Scangroup combine forces to form a unit called Team Airtel, which is a specialist Pan-African business unit, exclusively dedicated to Airtel across the continent.

    Team Airtel will seek to deliver integrated marketing services – advertising, media buying, market research and public relations in all 15 markets where Bharti operates in Africa.

    Team Airtel will draw on the talent in various departments within both Scangroup and Ogilvy such as The Brand Union who will be responsible for brand migration, Millward Brown for market research, Hill & Knowlton & Ogilvy PR for all public relations across all markets.

    The appointment continues and extends Ogilvy Africa’s existing relationship with the mobile firm, after it won the rights to handle its media buying and planning across Africa last year.

    Business Daily: *- Company Industry*|Ogilvy Africa clinches deal to market Bharti Airtel
  2. Semilong

    Semilong JF-Expert Member

    Jun 25, 2010
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    ZK bado watapata hela kupitia a1 outdoor
    sasa hivi mabango kibao ya a1 outdoor yapo tupu naona hii rebranding ya zain itamtoa zadok kimasomaso
  3. Ntemi Kazwile

    Ntemi Kazwile JF-Expert Member

    Jun 25, 2010
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    What does this mean to the smaller shareholders of Zain? Is GoT a shareholder in Zain???? Any information from anyone out there?