The ongoing controversy surrounding Eskom’s corporate rebranding tender highlights important lessons for marketers, business leaders and entrepreneurs on balancing image and infrastructure.
In times of crisis, focusing first on core service delivery before non-essential projects like rebranding is crucial.
Eskom is battling severe financial problems, aging infrastructure, and its inability to meet South Africa’s power needs – yet it decided a new logo should be a priority. Understandably, this move attracted widespread criticism for misplaced priorities.
As the utility argued, rebranding may be necessary as it unbundles. However, the lack of budget transparency and launch amid such operational turmoil understandably eroded public trust. For any organization, appearance should never override functionality when the latter is failing.
So what can we learn here?
1. Rebranding Exercises Require Buy-in
Branding exercises require buy-in, and that comes from confidence in service quality. When the basics are broken, no amount of image polish can restore credibility. A strong brand resonates because it fulfills customer needs – not the other way around.
2. Timing a Rebrand is Key
Major projects like rebrands should only proceed once crises have stabilized. Launching one during upheaval suggests glossing over real issues. It may be wiser to build or rebuild a brand slowly through consistent, visible improvements rather than flashy overhauls.
3. Transparency is Vital
People accept necessary changes more willingly with full context. Eskom lost this by omitting budgets, allowing imagination to run wild. Marketers must justify value to skeptical audiences through open books.
4. Prioritization of Real Issues
Leadership and resources demand clear prioritization. In times of austerity, every rand spent non-critically is one denied core functions. As marketing serves business goals, so business fundamentals should precede image management during distress.
For all companies, the Eskom case provides a cautionary reminder.
Brands thrive by solving problems, not just promoting polish. When infrastructure falters, substance must come before superficial style changes.
Only by demonstrating real progress can brands regain trust to embark on new identities.
Putting service before surfaces builds brands for the long term.
Read more about the Eskom story on News24
