MELBOURNE: Energy provider TXU aims to retain its customer base despite a forced rebrand following a change of ownership.
TXU was forced into a name change after Hong Kong-based CLP Power Asia acquired the energy supply assets of TXU Australia in May. US owner TXU Corp retained the rights to the TXU name as a condition of sale. "It was more a horrible reality than an intentional decision, because TXU was a well-loved brand. We fought it to start with, but we didn't have any real legs," brand manager Felicity Pringle said. The company is now called TRUenergy and also includes CLP brands Yallourn Energy and Auspower under the new name. To make things more confusing, the other half of TXU Australia, the network of pipes and wiring, was acquired by Singapore Power and is now called SP AusNet. To counter any confusion, TRUenergy has ramped up its ad spend, committing an additional 70% to its marketing budget to support the process. "Rebranding costs big money," Pringle said. The TRUenergy rebrand is the biggest to occur in Australia this year and the company is fortunate it inhabits a category that doesn't involve an emotional attachment with its customer base, said Brand Finance MD Tim Heberden. People don't get excited about electricity, as the TXU ad goes, making the name change from TXU to TRUenergy an easier transition, he said. "TXU must act quickly to ensure customers understand they won't be affected by the name change," Heberden said. "You can turn around a rebrand within a six-month period, but if you don't get the message across it can take a lot longer," he said. The TXU brand has only existed since 1999, establishing itself before the category became competitive with the help of its ad agency M&C Saatchi Melbourne. TRUenergy now competes against Red Energy, Origin Energy and AGL Retail Energy in its core markets of Victoria and South Australia. Interbrand Australia was contracted to handle the rebranding and CEO Sam Osborn said: "Our brief was to push the boundaries but ensure we didn't throw the baby out with the bath water." The well-known face of TXU - an employee expecting praise in social settings for his work - was kept on to take the new brand forward. Five transition TVCs, along with outdoor and print executions, now in the marketplace, will support the process. "We want to be back in a strong position by the end of the year," said Pringle. "We expect there may be a bit of confusion and some competitors may try and say TXU is not around anymore but so far we have had a positive response." TRUenergy has 1.1 million customers.
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