IDEA’s idea of customer engagement

Honey Bunny Song with the coolest family

India is one of the fastest, if not the fastest, growing countries for telecom companies with tele-density on an ever increasing curve. No wonder the last few years have seen outstandingly creative work coming for telecom brands. To name a few, the Vodafone pug and then the zoozoos, Airtel’s catchy tunes, Idea’s sirji, Tata Docomo’s series of ads.

Idea has consistently come up with diverse attempts to stand out from the clutter. Their new campaign ‘honey bunny’ tries to go the ‘ringtone’ or ‘caller tune’ way. A famous musical piece always gives a top-of-mind-recall. it’s very much a tried and tested formula. Thus goes away from the risk-taking creatives IDEA is known for. Having said that, the tried and tested works and this case is no different. We are seeing, or should I say hearing, a lot of these ring tones and caller tunes.

An example of the popularity can be found out from the following video done by a family. The entire family is the cast who enjoy the song to the fullest. IDEA brand managers would be smiling from ear to ear on seeing this creative rendition of their baby. It won’t be a surprise if this video goes the ‘Kolavari de’ or ‘Gangnam style' way. The success to viral videos is the simplicity and how it connects to the audience. This video is shot well, although post-production work has gone into it. It doesn’t look like a professional’s job done in a studio but a wonderful effort nonetheless.

This video might not result in increased sales for IDEA but it increases brand awareness. With technology available for shooting videos, companies must attempt to engage customers to join in fun. This could give some food-for-thought to brand managers to leverage technology to gain customer engagement. 

Airtel- ‘Sorry’ to its friends

Like. For a change, more than just imitating the west, we are learning from them as well. A testimony of this is the public apology by Airtel to all its subscribers for the hiccup in services since the last couple of days.

Today’s newspapers carried a quarter page public apology. This is in sharp contrast to Indian companies’ belief that all wrong doings or mistakes should be swept under the carpet. Toyota recalled its cars after a fault was detected, and Toyota Motor chief executive Akio Toyoda apologized in a press conference. RIM co-CEO and founder Mike Lazaridis apologized through a youtube video after blackberry services went kaput for a couple of days affecting its millions of users all over the world. Rupert Murdoch apologized for the phone-hacking scandal engulfing News Corp.

Cadbury India did not accept its mistake that a worm was found in its chocolate bar. It however went out of its way to give the chocolate bar extra packaging to avoid any future problems. Tata Motors did not apologize to its customers when there were fire incidents in its Tata Nano cars.

A start has been made by Airtel. Let’s see if corporate India accepts its mistakes in the future.

‘Keep cricket clean’- not a good idea

Idea Cellular has come up with some very good campaigns in the clutter of telecom ads. They have indeed managed to break the clutter frequently. Most notable of which was the ‘Walk When You Talk’ campaign with Abhishek Bachchan. Its earlier ads of ‘Sirjee’ too were very good. ‘Save Paper’ campaign too was done intelligently. There was also a single ad about Idea associating itself with the government’s UIDAI initiative. A common thread which can be drawn is that all the ads were based on a social issue affecting the common man thus making it relevant to the target audience.

The latest campaign with six Cricket World Cup winning captains (Clive Lloyd-1975 & 79, Kapil Dev-1983, Allan Border-1987, Imran Khan- 1992, Arjuna Ranatunga-1996 & Steve Waugh-1999) was also related to a social issue though not specific to the Indian audience. The world had recovered from the Match-fixing scandal until it was hit by the Spot-fixing one. A lot was said and done to prevent it. All the six captains have impeccable integrity and respect among not just the cricket connoisseurs but general public alike. By associating themselves with these captains and the theme of ‘keep cricket clean’, Idea has a broader audience to talk to. Cricket being the religion in India and the world cup in toe, the timing would not have been apt.

It seemed to be a masterstroke by Idea but unfortunately I counted my chickens before they hatched. Keeping at the theme, they should have talked about their brand relevance to the ‘champions of the world’ cricketers and what, if any, they are doing in partnership with the ICC to keep cricket clean. Saying it is one thing, following it up with actions adds credibility. By launching the ‘No Idea, get Idea’ ads, with these cricketers talking about getting Idea seems frivolous. The copy seems so obvious. With due respect, apart from Kapil Dev, Imran Khan and probably Steve Waugh, none of the other 3 cricketers have the charisma to endorse an Indian brand. Youngsters under 25 years probably would not even know how great a player and Captain Clive Lloyd was.

These cricketers could have been used to create a brand recall rather than to make a sales pitch. It surely doesn’t seem to be a good idea now. Disappointed would be the word to describe the campaign and a great opportunity lost to add further value to the brand

The zoozoo saga continues with the 3G ‘superhero’

The ICC Cricket world cup in the sub-continent was bound to create a fight among brands to communicate and make the most of the eye balls the world cup was going to generate. It indeed can be seen to be true with a plethora of TVCs on air. The clutter just got more cluttered making it even more difficult to break it. Telecom brands, car brands, motor bike ads, insurance ads, bank ads, consumer electronics, fmcg etc are all there.

It also acts as a competition between ad agencies to make a name for themselves with their creative content. Ogilvy India has really stamped their authority over their peers. They manage to grab eye balls, clutter or no clutter. I think that for the Ogilvy guys, a Vodafone ad is not a client but a brand to experiment and give out their best creative content. Credit has to be given to the Vodafone brand managers too for their willingness to take risk and approve the creative rendition.

Rajnikant clearly has influenced the creative guys at Ogilvy. From exaggerated claims in smses and forwarded emails of Rajnikant’s superhuman capabilities to the world-saving Superman, have been successfully used here. It would be such a treat to be a fly on the wall when Ogilvy creative guys would be brainstorming on the ad.

I wonder what could have been the brief from the client servicing guys and the planners to the creative team. All other ads talking about 3 G have been focusing on how 3G helps see live content on phones and the faster speed of internet and low pricing. Vodafone too is talking about the speed but the way it has been depicted is quite fabulous. Using a superhero to communicate about the fast capabilities is quite an interesting and intelligent proposition considering the liking which, not just the Indians, but the whole world has towards superheroes.

Full marks to the TVC. The teaser campaign I must say was indeed successful. People would surely be wondering about what would be the surprise. Another thing I liked about the ad showcase was that it was a 60 seconder ad .And with exorbitant charges which the official telecaster charges, it seemed appropriate to show the ad for whole 60 seconds ad till the buzz is created and then trim the ad to show the bare essentials. The can bring a new ad continuing on the zoozoo saga of 3G superhero to keep the interest going. Bottomline, an awesome ad bringing a smile on your face.

Mobile number portability (MNP) communication- Vodafone and the rest

There's always some more friends to make
There's always a space at the table
There's always a new game to play

And it's changing everyday
So many new faces
We're dreaming while we're awake
No time to waste today.

The world is our playground

These fabulous lyrics from the Vodafone Mobile number portability TVC clearly show the difference between Vodafone and the other service providers. Idea was the first mover when it launched its series of ‘no idea, get idea’ campaign. It would surely help them get customers. It was raved amongst the marketing and advertising pundits for thinking ahead if time.

Until Vodafone came up with this TVC. Idea seemed nowhere in the min recall. The thought is so awesome. Clearly a consumer insight to maintain continuity. They are not talking about others being good or bad. Just that we are good and you can come join us. Idea was talking about tangible aspects such as network, connectivity, etc etc. Vodafone took the leap and talked about the emotional connect.

I don’t remember if Reliance or Airtel or Aircel have come up with a MNP ad. Tata Docomo has come up with a ridiculous ad. Sorry to be so harsh but its really nonsense. Does it not remind you of the Vodafone Zoozoos ad during IPL talking about making you a star of the match? This Docomo ad also talks of making you a hero in a similar creative output. The ad goes on to say that relieve your friends of their network and show the freedom Docomo users enjoy. I really do not understand what they are talking about.

Vodafone is surely going to be a winner. Hats off to the guys at Ogilvy. They just seem to raise the benchmark with each passing creative. Competition is nowhere in sight and doesn’t even seem if they ever would be.

‘Carpet bombing’ by Airtel for their new logo

Can you spot the difference in the red colour?? Guess Brand managers of Airtel would not be too happy with this image. (An example of a real situation in suburban Mumbai)

The new logo by Airtel has been panned by marketing and advertising gurus. The rationale by Airtel of wanting a new logo for an international feel as Airtel goes to international markets with the Zain Acquisition and wanting to take on Vodafone in other markets hasn’t impressed the pundits one bit. According to them, the old logo was good enough for international markets as well. The new logo did not have any national colours or markers suggesting Indian origin. It has a clear difference in red and colour with a prominent font.

This new logo so closely resembles the red colour of Vodafone known all over the world. With their wide range of celebrity endorsers starting from AR Rahman composing the tune to Sachin Tendulkar, Vidya Balan, Madhavan and the last one, Sharman Joshi, Airtel was firmed ensconced in the hearts of Indian public. Its wider reach gave it a cross-country brand from the rich to the poor. Ironically, there has been a paradigm shift in the communication from Airtel post the logo launch. For one, it has not gone with a celebrity endorser. Only time will tell whether they will continue or get someone one board soon. Second, the signature AR Rahman tune which was so synonymous with Airtel has been done away with. Instead a more peppy and English tune is being used in TVCs.

Airtel, however, it seems in a hurry to make its logo remind people of Airtel again. It being visible from the carpet bombing that they are resorting to with people being targeted through all forms of communications namely the traditional print, TV, Radio to the tech savvy Internet and the mass places such as bus stops, railway stations, roads (hoardings). No place has been left vacant. Thus as time passes, with the incessant bombarding of the logo, it will become prominent in the minds of the Indian public as well.

Looking back, it was said that Airtel needed to have a mnemonic logo since it just had the name. I do not completely argue to this argument. Major brands the world over such as Coca Cola, Nokia, Bata, IBM, Canon, Oracle, SAP, or even the Indian brands such as Raymond, Onida do not have a mnemonic. Thus having it doesn’t make a brand big and not having it doesn’t make it any less known.

The main purpose of a logo is to strike an awareness of the brand and what it stands for through a logo. It the same is possible through a typographic logo, a mnemonic isn’t essential.

Coming back to the Airtel logo, with time, it will get registered in the minds of Indian consumers. But it will not serve ay additional purpose for the brand Airtel except for an exorbitant cost to design the logo and to promote the logo.

We are the Blackberry boys- the next cool anthem

Vodafone does it again. They just seamlessly continue with awesome communications through their TVCs. It is a combined effort of marketing and advertising creative. Without the other, things would not have been the way they are. Vodafone is easily the brand with the highest recall. Its pioneering advertisements have given them an edge over not only its immediate competitors but also in the advertising clutter.

The Vodafone pug became the most prized property amongst children of the affluent classes. Although the pug belonged to Hutch, its transfer to Vodafone hasn’t been noticed as much. Then came the phenomenal Zoozoos which catapulted creative innovation to stratospheric levels. Lately Vodafone’s campaign targeting the pre-paid users with Rs. 4 plans and the lovable parsi parrot too had a high recall. Immediately its competitors followed suit and launched low cost plans just like the way they launched Value-added services usage ads after Zoozoos.

So Vodafone thinks first which then becomes the norm to follow. Its latest ad ‘We Are the Blackberry Boys’ is on the way to becoming the next cool anthem amongst college going kids for whom it is targeted. A very good case of two good brands coming together was benefiting the other. The marketing acumen was to target the youngsters to use internet on the phone which gives more revenues to the service providers. The problem was about the perception that Blackberry phones are used only by working professionals and businessman who want to check emails and are constantly on the move. By targeting the affluent youngsters who have the disposable income, the market pie has increased. This has been aided by the urge for people to update their social networking accounts like twitter or facebook frequently.

The ad is a clutter breaker and although being in English, is appropriately targeted. The ad at first seems to be a foreign Blackberry-Vodafone ad telecast in India but it should be no surprise to anyone that it is indeed made by Ogilvy India for the Indian audiences. On the contrary, I wouldn’t be surprised if the ad is played in the developed markets and wins an award or two at advertising festivals.

Creative Brief for Zoozoos

Being an advertising professional in the Client Servicing department, i give creative briefs day-in and day-out. For a change, i thought let me reverse the process. Following is my attempt to give a creative brief which can result in the creative product "Zoozoos"

Creative brief:

1. Who are we? What are we advertising?

Vodafone is a Multinational company operating in 31 countries and is the second largest telecom service provider in India in terms of revenues and subscribers after Bharti-Airtel. Over the years, Vodafone Essar, under the Hutch brand, has been named the ‘Most Respected Telecom Company’, the ‘Best Mobile Service in the country’ and the ‘Most Creative and Most Effective Advertiser of the Year. They believe in innovation and thus want to promote their Value-Added Services (VAS).

Voice has become commoditized and has ceased to be a tool for differentiation. Thus there is a need to develop alternative revenue streams for the telecom service providers. This is even more necessary due to the continuous entry of new players bringing down tariffs in the process reducing revenues for telecom service providers from voice.

There is stiff competition among the players resulting in one of the lowest tariff regimes ever. All operators are spending huge amounts on promotions and brand building. TV has been the preferred media for the ad spend accounting for more than 50 %

There are three categories of VAS applications

1. Entertainment- e.g. Jokes, Bollywood Ring-tones & games
2. Information- e.g. news alerts, stock market alerts, movie tickets,
3. Mobile commerce- e.g. mobile banking or mobile payments

Objective: to create awareness about the VAS applications and induce trial.

2. Target group: VAS applications are available for people of all age groups, right from exam results for a 20 year old to devotional songs for the old.

Thus age group is 20 onwards for both, men and women, married or single.

Media habit: TV and print majorly for people above 25. College going students nowadays are exposed to high degree of social networking sits such as facebook, orkut, twitter.

(Both men and women)

Top level executives: 40 years and above

Requirements with VAS applications- high speed internet connectivity. Major users of email on the phone. High income and high spenders

Mid level executives 30- 40 years

Requirements: high speed internet connectivity. Are technologically comfortable and hence use VAS applications such as mobile banking and information search apart from email. Medium income, high spending

Young professionals between age group of 22-30: tech savvy, early adopters, high spenders on technology due to either being single or experimental in attitude.

Youth from 15 – 22 years who are studying: early adopters but spending is constrained due to dependence on parents for income. Entertainment focus, affinity for social networking and peer communication. Peers act as strong influencers

We need to get away from the pug as it belonged to Hutch.

3. Competitive framework:

Primary competitors: Airtel (1^st Leader), RCom (3^rd Challengers) in terms of subscribers. BSNL (4th), Idea Cellular (5th), Aircel, Tata DoCoMo, MTNL follow.

(As per the figures of Quarterly reports for the quarter ended June 2009)

Secondary competitors in CDMA segment: Tata Indicom

Over the years, telecom players have used celebrities. Airtel has Shah Rukh Khan as its brand ambassador. RCom has Hrithik Roshan, BSNL has Deepika Padukone, Idea has Abhishek Bachchan, Aircel has Mahendra Singh Dhoni. Vodafone does not have a brand ambassador.

Airtel has over the years gone from tangible aspects in its communication to the intangible. Most notable of which is the bridging boundaries ad “There is no war or barrier that can keep us apart, if only we talk to each other”. The signature Airtel tune by AR Rahman has a very high recall.

RCom started with ‘karlo duniya mutti mein” and initiating the tariff wars not only in terms of voice price but also handsets. Presently it is running the Hrithik Roshan ads for promoting its GSM service.

Idea cellular started off slow but its “Sirji” campaign bought it into the limelight along with the ‘walk when you talk” ad. It has always experimented with social issues.

Aircel was a regional player in south but went national with Dhoni as its brand ambassador.

4. How is the brand perceived before the communication?

‘Happy-To-Help’ campaign. Customer service was never the focus of telcos. In an increasingly tough environment, Vodafone wanted to cater to this untapped issue which is so integral to service companies yet wasn’t a focus. Telcos wanted to increase number of subscribers as it allowed them greater reach and economies of scale. It also allowed them to ask for more ‘spectrum’ with the increase in number of subscribers.

Thus the ‘Happy to Help’ campaign was evolved to give the customers what was missing. This campaign was implemented across 45 offices and 4000+ Vodafone stores and mini stores involving over 10000 employees. The communication was through employee signing off emails and service calls with ‘Happy to help’ message, the cute little girl and the pug became synonymous with ‘helping each other’.

5. Insights: Consumer insight: mobile phones today have moved beyond their fundamental role of communications and have graduated to become an extension of the persona of the user. All are witnessing an era when users buy mobile phones not just to be in touch, but to express themselves, their attitude, feelings & interests. Customers continuously want more from their phone. E.g. Your caller tune signifies your personality trait or your mood

6. Core proposition?

Intangible: Fun with the cell phone.

7. Tone

Vodafone-Essar is among the top 2 players and thus it is a leader. Vodafone ads have always been clutter breakers right from the hutch boy and pug to the ‘Happy to help’ girl and the pug.

8. How do you want the brand to be perceived post the new brand communication?

Go beyond the connectivity, low cost and voice clarity aspects. Value-added services should be the growth driver for Vodafone. Volvo has top-of-the-mind recall when we say ‘safety’ or Bajaj has top-of-the-mind recall for scooters, Vodafone should be top-of-the-mind recall for Value added services.

Of blood baths and paid baths:

There are more than 13 existing telecom players in 23 circles of India where the penetration in urban areas is more than 75% and in rural areas is about 12%. India, till last year, had one of the lowest tariffs in the world. Since Tata DoCoMo launched its per-second billing, all other service providers followed suit resulting in price war causing red line on the balance-sheet of already loss making telcos. Now, India has the lowest tariffs in the world with more to follow to attract customers.

The Indian market is one of the fastest growing telecom markets with 500 millions subscribers and yet a huge untapped population base. With paucity of infrastructure, telcos are increasing the customer base with future in mind. No problem till now but it starts when increasing customer base becomes the only objective with no regard for short term profitability or even sustainability. Just 2 or 4 major players in GSM and CDMA segment, things were on a tight rope for these telcos. But with aggressive new players wanting to make an impact, existing players are feeling the heat. New entrants will lose money as they fight for share, but that is something that happens to new entrants in most businesses. The smarter new entrants will likely share infrastructure and outsource most of their operations—both trends that the first generation of Indian telcos discovered only earlier this decade.

Thus with time (may be a couple of years), “voice” service by telcos will become a “commodity”. All prices will be on similar terms, distribution will be similar, and all telcos are going to increase promotion with time. Thus new entrants and existing players will have to come up with value-additions for customer delight and ways to find customer retention with the launch of Mobile Number Portability (MNP).

Value-added services (VAS) will form the core part of this strategy but it will all depend on the pricing model in this case. If the 3G auction results in players spending huge amounts of money to the government, the prices of VAS would be high thus causing a hindrance to its mass usage. The revenues for the players will not accrue resulting in more time for turning the tide towards profitability.

Thus a time will come when “voice” will be given free of cost and with the telcos charging for the VASs. It wouldn’t be a surprise of sorts and wouldn’t even be a bad economic decision since it follows on the models of other great companies such as McDonalds which does not make money on its burgers but makes them on French fires and the soft drinks, Multiplexes which do not make money on the ticketing sales for the movies but makes them on the popcorn, soft drink and the other food items available for the customer, NEWS Channels or newspapers do not make money on subscription but makes them on the ad sales.

Bottomline, a time will come when the telcos will be hoping to make money by giving the soap away and charging for the bath.

Blood bath in Telecom sector in India:

If an industry analysis of the telecom sector in India is done, it would show the cut-throat competition that is going on for subscribers between the existing players. There are 11 existing players in the telecom space already namely Vodafone-Essar, Airtel, Aircel, Idea Cellular, Tata Indicom, RCom, Loop Mobile, Spice Telecom, Virgin Mobile, BSNL, MTNL. The industry has high entry barriers with the requirement of huge infrastructure, massive promotion due to numerous players resulting in high spending and almost commoditization of telecom services (we will discuss the commoditization aspect later). Apart from this, the high amount that is needed for buying the all too sparse spectrum. There are high exit barriers. The average revenue per user (ARPU) is one of the lowest in India resulting in red lines for the telecom companies.

Yet new entrants are planning to enter India with 3-4 big players namely Shyam Telecom in JV with Russia based Sistema, Unitech Wireless with Norway based Telenor and UAE based Etisalat going it alone soon to launch their services in this already congested market.

The huge untapped market potential has all these players wanting to enter the telecom bandwagon with an eye of the future when 3G services will bring in the revenue and profits. The only motive of these operators now is to increase subscribers. The existing players and the new entrants do not have much different to offer in terms of services. The only service they had to offer was voice-calls and SMSes. It has made a commodity of the voice-call or sms. Value-Added Services (VAS) which get the revenues for operators in other developed markets has yet to evolve in India. Partly because of its high cost to the customer and the sophisticated high-end cell phones required for accessing these VASes. Thus the only aspect they can fight is in terms of pricing. The Indian market is price sensitive in various products/ services and it is no different here. This has resulted in price wars, thus bleeding the already losing operators.

Tata DoCoMo with its GSM service was the first to launch ‘per-second-billing’ plan. This was immediately followed by Aircel immediately when they launched the 123 billing plan where after the third minute, the STD call would have local rates. As soon as Tata DoCoMo aggressively pursued the per-second billing plan, others had to follow suit to be in the race and not allow DoCoMo to run amok with subscribers. Airtel, Vodafone, Idea, BSNL, RCom too slashed rates and the tariffs fell to a world record low of 1 paise per second. With these new plans in place and mobile number portability to follow, a lot of churn might happen and telecom analysts predict a reduction of about 15% in revenues for existing telecom operators. The financial markets have taken note of it and scrips of many a telcos have taken a severe beating with Bharti-Airtel taking the brunt of it. The customers are benefiting from the price wars but it is profusely bleeding the already bleeding telcos. When will this blood bath end?

A time will come when price would cease to be a factor. Differentiation would have to be actually done in services offered. But in the mean time, telcos will have to bear the harsh competition. May be consolidation would be the order of the day in the coming 3-4 quarters.

NTT DoCoMo- A world leader has arrived in India:

Last week saw the world leader of technology entering Indian telecom space. NTT DoCoMo Inc, a Japanese telecom giant joined hands with Tata Teleservices Ltd (TTSL). and has been given the license to launch GSM services in 19 of the 22 circles.

This will provide expertise to TTSL in the GSM Segment which will herald a new beginning for India. A true world leader in 3G technology has indeed arrived in India and this is sure to give sleepless nights to some of the executives at other telecom companies in India.

The 3G strength of DoCoMo which is readying itself for 4G in their Home country will help TTSL in its GSM endeavour and give a Philip to its under performing CDMA segment. With the spectrum allocation for 3G more than 3 months away due to the matter being transferred to the empowered group of ministers (eGoM), the time delay is inevitable. The formalities itself will take up this time. Then you have the base auction price to be decided and the allocation of how much spectrum to whom. Spectrum is a national asset and can be used only once. Thus arriving at the right valuation is most necessary and critical for Indian treasury.

When the spectrum is finally allotted, TTSL will surely get a head start over other telecom service providers in terms of technology, content and speed which are most essential for delivery of good Value-Added Services. It can also help in terms of promotional campaign to take on Vodafone which is aggressively pursuing the VAS segment. People would believe the promotion since they appreciate and are in awe of the technology expertise of Japanese companies.

The recession in the last10-22 months has not affected the growth of the telecom sector. The prime reason being the vast potential present. Only the metros and some major towns are congested with majority of players operating and virtually all people having a cell phone. The tier II cities and towns and rural areas are yet to be penetrated intensively. Thus the telecom sector has continued to grow with Bharti Airtel leading the pack with 100 million cutovers touched last month.

The entry of DoCoMo isn’t at all surprising. More players will enter India as the foreign direct investment (FDI) restrictions are relaxed in due course of time. There is talk of Etisalat (UAE giant), and AT&T (the US giant) entering India soon. Even Indian business houses are applying for spectrum to jump on this bandwagon such as DLF, Videocon, Shyam telecom, and some yet to be announced names.

With the increase in players vying for the same pie, naturally the competition would increase resulting in price wars. This augurs well for the Indian customer.