Comparatively speaking, when you sit the brand alongside its more sophisticated, and arguably more successful, trio of cousins DHL, UPS and FedEx, chances are TNT ranks last in terms of brand equity and awareness. Its ‘orange’ identity at least is recognisable.
According to observers, it tops most of the key brand awareness and business rankings in Europe, and its relatively steady underlying financials (Q3 revenue has grown 10.5 per cent for 2007 compared with ’06) suggest the company is on the right track.
So why is the company struggling to transfer this solid performance into success in the world’s fastest-growing region?
Recent global delistings from the New York Stock Exchange and the London Stock Exchange - typically a move sparked by a need to consolidate financials - combined with a drop in share price indicates all is not well.
Its appointment of a new agency, Y&R, to its Southeast Asia creative brief shows it has become increasingly aware of its shortcomings, at least at a pan-regional level. When you add in the company’s planned Asia Road Network linking Singapore to Southern China perhaps TNT is wising up, and becoming a little more proactive in capitalising on the region’s boom.
One former TNT marketer singled out management’s reticence to invest in marketing at a global level as one of the key obstacles for the brand. “TNT is way behind the other big three,” said one source.
“Globally, TNT has never believed in investing in the brand, and their strategy has always been very short-term, very tactical in nature and there has never been any follow-through.”
But it’s not all bad. Experts predict that a greater focus on its branding and a renewed strategy which seeks to differentiate it could be the tonic TNT needs.
But the question is, is it too little too late for TNT in Asia-Pacific?
Fact Box
1998: TNT lists on the NTSE
March 2006 to June 2007: TNT delists from the New York, London and Frankfurt stock exchanges
October 2007: TNT reveals its 3Q revenue for 2007 has grown by 10.5 per cent compared with the same period last year. It also reveals it is reviewing its pan-regional creative account
Philip Brett is CEO of TBWA\ Tequila Singapore and MD of Tequila\Asia-Pacific
When asked about whether I could give my views on the TNT brand I really struggled. As someone in the communications industry, I should immediately have an answer.
Can I talk about FedEx, and the ubiquitous logos and planes? Can I talk about UPS, its impactful rebrand and their surreal ads with Jean Reno? How about DHL living to deliver? Hmmm TNT. I remember orange, Dutch or Aussie? Didn’t it merge with a post office?
Any business that up until 10 years ago transported our documents across borders, which we now send in seconds for free via the web, still thriving deserves a big ripple. So perhaps from the business point of view, all looks good.
Brand wise, less so. I feel that I instantly know what the competitors stand for. Less so TNT. Dare I say it, if I was hauled into a focus group I would be positively aware of DHL, FedEx and UPS, but I would need a little prompting for TNT.
So the diagnosis? TNT, seems to be more logistics than a service business and it’s too low profile. Work on that perception. This is something it critically needs to fix while at the same time focussing on ubiquity of this potentially powerful brand. Sounds like a great brief.
Angela Yeo, senior consultant, The Brand Union
Few companies have demonstrated such a clear link between business strategy and brand expression as TNT. Business-wise, TNT divested its logistics and freight management business to focus on an aggressive expansion for its delivery networks, express and mail.
It launched a one-brand initiative to establish ‘TNT’ and its signature orange worldwide. The new strapline clearly states ‘It’s our business to deliver yours’. Commendable focus. Market thinks so.
However, is this too late? Notably, the current TNT brand has been on a journey of almost 10 years since its listing. Looking back, it has remained consistent. Competitors have evolved more aggressively, moving from functional descriptions to emotive positionings around peace of mind or the expertise and can-do attitudes embodied by their people.
For TNT, it makes sense to consolidate before repositioning. Once this is done however, how does it reposition in a now crowded space? The answer may well lie in referring back to the unique points of its business strategy.
It sees its growth in the emerging markets. It needs to uncover the value of this focus for these specific customers – and have the courage to put this at the core of their brand.
