South African based Pan African telecoms operator, MTN, was recently recognized as one of the world’s top 100 Brands. This was in the annual Millward-Brown BrandZ Top 100 Global Brands Listing. Its 79th positioning overall and 8th place within the telecoms sector makes it the only African company on the list. The financial value attached to MTN’s brand equity is estimated to be a whopping USD 11.5 billion, more than the national GDP of a number of countries on the continent. Telecommunications is one of the sectors that has benefited directly from Africa’s economic growth, however MTN’s achievement contains a number of lessons for African businesses of any scale and sector. Even the fruit seller at the street corner…

A few years ago, I read a highly captivating profile on the company. This was during the time when Dr Santie Botha was Chief Marketing Officer. The words I can conjure now to describe my thoughts of what MTN stands for based on what I read are:

Access: MTN consistently communicated that they were for the majority and not an elitist few. Even their pay offline was and still is “everywhere you go”.

Belonging: MTN’s bright yellow colour and positioning as homegrown company transcends Africa’s diversity. Africa has never been a dull place where colour is concerned. Sponsoring events like the historic 2010 World Cup went far to underscore its identity.

Optimism: As an African company founded and operated by Africans, MTN naturally exudes an entrepreneurial spirit. Such a spirit can serve as motivation for Africa’s youthful majority.

Trust: Perennial network challenges aside, MTN prioritises quality in all it does. The company exists for the long term and is not out to get a quick buck.

The way a lot of enterprises across Africa have conducted business leaves a lot to be desired. The continent is growing from a very low base that focused on a supply based approach. Companies would produce to sell for the short term and paid very little attention to:

  • Product Quality
  • Brand Identity
  • Customer Service / Customer Care
  • Packaging

It’s thus not surprising to find products or use services that are promising but falling short in one or most of the above categories. The focus up until now has been on just churning out stuff in the belief that consumers had no choice. This betrayal of trust and logic is being challenged by globalisation. The arrival of the internet, expanding middle class base and rising competition from other developing countries have all increased consumer expectations. Malls have begun to spring up in previously disregarded locations and online shopping is emerging as enabling factors increase. Surprisingly instead of waking up to this new dispensation, a lot of enterprises have chosen to scramble to governments begging for protectionism.

Branding is much less about logos and fancy colours than it is about trust and identity. MTN has been able to get to the position it is based on a great deal of the above. Living in the knowledge economy means that Africa has access to exactly the same information and data anyone, anywhere does. The data on hand is that Africa has built very few brands of note. After a long runway to learn and catch up after the liberation of the continent, local enterprises urgently need to shift their attention from a supply based mentality and realize that the spotlight is now on demand. Consumers are demanding quality, identity, consistency, and good customer care. Failing to rise to the occasion creates a vacuum that more prepared enterprises from abroad can swiftly descend on.

image via www.techcentral.co.za

 

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