Number 2 U.S. wireless carrier AT&T has snagged former Coca-Cola exec Esther Lee to oversee brand marketing, advertising creative and media strategy. According to Advertising Age, last year AT&T spent $2 billion in measured media. In this newly created position, Lee is expected to bring a fresh approach, challenging how AT&T has branded itself in the past by introducing new ways to tap into the emotional relevance of the “always-connected” theme that has by now become the standard message that all carriers are communicating.
Lee is known for being adept at creating a compelling and meaningful narrative to which consumers can relate. At her last gig as Coca-Cola's chief creative officer, she made an impact by stressing the importance of design as vital to the marketing mix – hiring the company's first VP-design. Although Lee comes to her role at AT&T without telecom marketing experience, her creative skills lie in understanding and connecting with consumers.
AT&T CEO Randall Stephenson has recently stated that wireless is the company's priority, so it is likely that its wireless business will be afforded a substantial portion of marketing spending. 78 million wireless customers, or 29% of the U.S. market, are AT&T subscribers, while Verizon Wireless has a 32% share. But it faces some major challenges, including ensuring consumer demand for mobile-data services does not surpass the capacity of its 3G network, which it is continuing to build out. AT&T's exclusive agreement as Apple’s U.S. iPhone carrier expires in 2010, highlighting the risk of putting all one’s eggs in the same basket. In addition, a number of compelling new smartphones are aiming to knock the iPhone off its throne.
Another of challenge facing Lee will be to help AT&T evolve away from any notion of still being “your grandfather's telephone company” from the days when it still held a telecommunications monopoly. In fact – s Lee is well aware from her time at Coca-Cola – the goal for any iconic, cross-generational brand is to constantly seek new ways to ensure its history does not anchor it to the past but rather propels it into the future.
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