Nicola Mawson
Cell C, which became South Africa’s third network when it was launched in 2001, last night unveiled a refreshed brand that aims to disrupt the market, and have the customer at the heart of everything it does.
Cell C CEO Jorge Mendes, addressing about 800 staff and dignitaries at an event held in the auditorium at the mobile operator’s Midrand campus last night, conceded that the operator, which still has work to do to shore up its balance sheet, had lost itself along the way, even as it did good work. “We’ve had a few false starts,” he said.
Mendes told Business Report the operator had been focusing on liquidity and cash as it sought to increase revenue. He said the company would be cash positive in the next few months as operational indicators improved.
Speaking during the event, at which many Cell C staff were wearing items of clothing, such as shoes, in orange, Mendes said, that he was proud of what the company and its marketing partners had done over the past 12 to 14 months.
Cell C had put real money behind the brand, said Mendes. “This is not a coat of paint, it’s a sincere, genuine effort to touch the heart of the customer.”
Cell C’s last brand refresh was under then CEO Lars Reichelt, who unveiled the now familiar C within a circle in orange about 14 years ago. The logo is now more open, with the C in the circle having an opening at the right-hand side instead of resembling the closed copyright symbol, representing the company’s desire to be more transparent and open.
In February, Blue Label – Cell C’s single largest shareholder – saw its profit take a R100 million hit for the six months ended December due to a more than R300 million loss at Cell C in the period. Blue Label, Cell C’s single largest shareholder, reports its full year results on August 29.
Mendes said the operator had resized the organisation, changed the funding strategy, and altered management. “It’s a very proud moment for me to say we have officially begun the turnaround process… We want to own the history.”
Cell C’s orange colour remains, with Mendes saying research had indicated that it resonated well with customers, and it has worked well in the past. “We have to treat this brand with respect… In fact, to be brutally honest, when I first arrived, I wasn’t a fan of orange.”
Mendes, who took over as CEO last July - taking the helm from Douglas Craigie Stevenson – said he had never felt like he had felt he made the wrong decision in moving to the operator.
“Not for a second did I doubt that this brand has power. I wouldn’t take a function that I didn’t believe in… This organisation will do something special for South Africans. We’re on a journey.”
Melanie Forbes, chief marketing officer, said the branding, in the making for a year, aimed to be disruptive as it will be more visible so Cell C can gain more share of wallets. It seeks to offer the best connectivity and value, she said. “We can now offer South Africans the best of both worlds.”
Schalk Visser, CTO, explained that, from about September, Cell C will be able to balance both prepaid and postpaid customers across MTN and Vodacom, with which it has roaming agreements. Currently, contract customers are housed on Vodacom’s network, with prepaid users on MTN’s following the operator’s decision to decommission radio network sites.
BUSINESS REPORT