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Centertel's rebranding appears to be a success, but a costly one

"Orange is the most expensive brand on the market, but regardless of that it sells very well, mainly thanks to a well-tailored and cohesive marketing campaign that stresses high quality and promotes a cosmopolitan lifestyle; it is modern and friendly with delicate business connotations," said Krzysztof Kaczmarczyk from DB Securities. While the new brand is doing very well, experts say that switching from Idea to Orange was not necessarily the best move to make. "Rebranding itself was a financial burden. If it had not been done, the company would simply enjoy better financial results," explained Andrzej Piotrowski from the Adam Smith Center. The Center's report issued at the end of 2005 says that the process of rebranding cost TP, the owner of PTK Centertel, $1 billion. "Now the brand's influence on sales is neutral. On the other hand, the company will have to pay the French owner fees for using the brand, which generates high costs," stated Michał Marczak from DI BRE Bank. The operator hopes that Orange would become the market leader by the end of 2006 and it would win 13 million customers by 2008. (Puls Biznesu, pp. 1, 10) D.W.

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