Telecom's decision to change its name to Spark took the nation by surprise yesterday – and prompted questions as to what justifies a $20 million-dollar rebrand.
Telecom is changing it's name to "Spark"!?... does this mean the name "telecom" is available? I'm thinking of starting a new business?
— Guy Williams (@guywilliamsguy) February 20, 2014
Company chief executive Simon Moutter said the new name better reflected the company's direction and range of services, while also reflecting the modern tech economy and New Zealanders' creativity. It's also the name used internally to refer to Telecom's asterix-like logo (which changed from pink to green in response to customers' feedback last year).
The change is expected to cost around $20 million, most of which will be spent on changing signs – but in the same announcement, Telecom revealed a flat net profit of $167 million for the six months to December 31 last year.
Customers can ask questions about and share thoughts on the name change at SparkShould.com.
Someone must be rebranding, I can hear the screams and smell the burnt flesh
— James Butler (@j20r) February 21, 2014
With 1.9 million Telecom customers to Vodafone's 2.32 million, the rebrand is considered a risky move. Commentator Lance Wiggs said it was “disturbing” in a blog post, and made the point that the change is due to take effect on April 1 – “so there is a chance it’s all a joke. Please.”
@TheNBR @ChrisKeall insanity. They stand to lose a generation of customers who have never known anything but Telecom.
— Jonathan Brewer (@kiwibrew) February 20, 2014
But Burberry, McDonald's and Old Spice are among the companies to have benefited from a rebrand in recent years. Business Insider, PencilScoop and Logoholic each have examples of high-profile corporate makeovers, both successful and not so successful.
