New Brand Equity: The Merger of Nokia Siemens Networks

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Marketing Management – Big Paper

New Brand Equity: The Merger of Nokia Siemens Networks

Abstract

This Paper is about the creating of the new brand equity which is derived from the merger of Nokia’s Networks Business Group and Siemens’s Carrier Related Operations became Nokia Siemens Networks.

In Indonesia, Nokia Siemens Networks known as PT. Nokia Siemens Networks. PT. Nokia Siemens Networks run business to business marketing and it customers are operators telecommunication in Indonesia, such as: PT. Telkom, PT. Telekomunikasi Selular, PT. Indosat, PT. Excelcomindo, PT. Hutchinson, Samporna Telecommunication, Sinar Mas Telecommunication, etc. PT. Nokia Siemens Networks not only produced and sold  equipments, solutions and services but also build BTS (Base Transceivers Station) for its customers.

This Paper examines how Nokia Siemens Networks form and communicates its new brand equity to customers and employees. So Nokia Siemens Networks can positioned its new brand image in the customers mind as company that could delivering superior customer value.

I. Introduction

The world's telecoms infrastructure providers have underwent major restructuring in the past few years either through mergers or acquisitions in the middle of a growing price pressure in the rapidly expanding and intensely competitive telecoms market.

The mergers and acquisitions (M&A) seemed to be popular in the telecommunications industry. The latest merger move on April 1st, 2007 was launched by the two Europeans vendors, with the recent 50-50 joint venture of Nokia’s Networks Business Group and Siemens’s Carrier Related Operations. This merger apparently reflects a synergistic move to create a powerful along network solutions provider.

The pressure to merge among telecommunications equipment vendors has never been as intense as it is now in the middle of a growing portfolio of contract wins by low-cost Chinese vendors and the streamlining of carrier operations. Not only are emerging vendors such as Huawei and ZTE exerting pricing pressure on telecommunications equipment, these companies have also improvised and moved up the value chain, thus proving to be a major force to be reckoned with in the vendors’ space.

Following the merger of Alcatel-Lucent, Nokia and Siemens have pursued similar objectives to strengthen their market position through greater scale and more extensive convergence portfolios. Despite the massive rationalization during the merger, the company is likely to remain the third largest vendor in the overall global telecommunications infrastructure market. The industry giants, Ericsson and Alcatel-Lucent still have a firm hold of the top two positions. In this case, is the Nokia-Siemens joint venture worthwhile?

The combined company is positioned to lead the development and implementation of revenue-sharing and cost-saving products and services via its scale and global reach.

The merger of Nokia Siemens Networks would have one of the world's best research and development teams, with the ability to invest in next generation fixed and mobile product platforms and services.
In addition, the new company will also have a world-class fixed mobile convergence capability, a complementary global base of customers, and a deep presence in both developed and emerged markets. The merged company would be better suited to compete with both Alcatel and Ericsson in the market for both fixed and mobile telecommunication services. The partnership will be the most effective way to build the scale and broad product portfolio necessary to compete globally and create value for shareholders.

In Indonesia, Nokia Siemens Networks known as PT. Nokia Siemens Networks and it’s headquarter at Jalan H.R. Rasuna Said Kav. C 11-14 Plaza Kuningan Gedung Menara Selatan Lantai 7 Jakarta 12940. PT. Nokia Siemens Networks run business to business marketing and it customers are operators telecommunication in Indonesia, such as: PT. Telkom, PT. Telekomunikasi Selular, PT. Indosat, PT. Excelcomindo, PT. Hutchinson, Samporna Telecommunication, Sinar Mas Telecommunication, etc. PT. Nokia Siemens Networks not only produced and sold  equipments, solutions and services but also build BTS (Base Transceivers Station) for its customers.

In merger there are large amount of tasks that must be handled by company. One of the tasks is related to brand and image, such as: developing new logos and corporate identities, assisting in name selection and designing collateral materials such as announcements, letterhead, and brochures.

Nokia Siemens Networks had launched its new brand on February 2007 at the . The resulting brand is an implicitly dynamic wave (The wave symbol) with a purple to yellow gradient (avoiding what would have been a too-cold gradient from Nokia's blue to Siemens' light teal) and a confident, modern sans serif. In creating the brand, Nokia Siemens Networks wanted it to be different, fresh and energetic. Not boring old suits - so that's why the colours are different and brand mark is the wave – it is means flexible.

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NETWORKS

Nokia Siemens Networks is creating a new brand identity. The essence of its brand is about uniting communities and bringing networks to live. This is to say Nokia Siemens Networks enabling both geographically networked communities and virtual communities.

The attributes of Nokia Siemens Networks brand are what it promises to be: Pioneering, Passionate, and Pragmatic. Being Passionate is about emotion. It starts with inspiring leadership and ...

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