Brand building exercise for telecom brand

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  1. 1. Strategic Recommendations for Aktel* in Bangladesh Telecom Market Brand-building Exercise for AKtel *AKtel is now Robi, the 2nd largest Telco in Bangladesh
  2. 2. 1. The Positive Outlook 2. The Mobile Eye Poppers 3. The Most Relevant Category Trends 4. A Competitive Update 5. The India Paradigm 6. The Prospects for the Bangladesh Market 7. The Challenges & the Strategic Imperative 8. The 3 Critical Blocks 9. The Opportunity & the Strategic Challenge 10.The Communications Purpose & the Brand Spirit 11.The Portfolio Strategy 12. Creatives Sample Concept for Signature Route 1 Signatures of Celebrity Lifestyle Route 2 Making Possibilities Possible 8. Comprehensive 360 degree IMC roadmap for Signature 9. Protishabda Agency Strengths 10. Protishabda Billing Principles 11. Protishabda Media Highlights We Will Walk You Through
  3. 3. The Positive Outlook
  4. 4. Economy Growing by a whopping 6.7% Share of Agriculture in GDP down to 26 % from 80 % A rapid growth in Urbanization has also led to a sudden spurt of the middle class household A Progressive Literacy rate of 60% Millions of Cars on the road today and growing further
  5. 5. A Nation Emerging as economic powerhouse of tomorrow
  6. 6. House owning households have increased by almost 50% in the past five years
  7. 7. One of the top 11 Emerging economies as per Goldman Sachs outlook report
  8. 8. Moving onto the Telecom Space
  9. 9. A change that is affecting everyone across the country across profilesgeographies A change that is not just driven by the city-bred urbanites anymore
  10. 10. Who says you cant have everything? One of the fastest growing categories Never Had the Consumer Had it so good
  11. 11. Lets Look at some Eye Poppers With relevance to the Mobile Space
  12. 12. 15 Million Phones to 32 million phones in 3 years flat A tele-density of 22 today from a Tele-density of 0.26 In 1997
  13. 13. The fact that almost 60% of the population in the country is under 40 makes a large chunk of users and prospective users in the youth band
  14. 14. The country with one of the lowest call rates An average of Tk. 1 per minute from about Tk. 7 per minute 5 years back
  15. 15. A certainly talkative Bangladeshi. Almost 350 Minutes of usage per month, which is one of the highest in the world
  16. 16. There is still a very strong value-orientationBut, with an altered perspectiveDue to the plummeting call rates, a new inclination has come to the sceneto try out things that appeal to me a willingness to stretch if it catches my fancy
  17. 17. The consumer is truly the king
  18. 18. Lets look at few of the defining trends in this scenario
  19. 19. The ever-bulging Pyramid 1. A never ending stream of new customers entering the category 2. Constant migration upwards. A steady stream of consumers moving from the bottom end to mid end and mid end to the top end Trend 1 New Users Coming in to the category New Users Coming in to the category Evolved High-end User Holistic Value Seeker Pure-Play Voice User
  20. 20. Shifting of the Battle Arena Everyone is trying to get a lions share of the uninitiated 78 Acquisition has become greater than retention Trend 2
  21. 21. The Fallout Sudden Course Correction and change of focus by all players single minded objective now Building preference amongst the prospective users at the mass end of the market
  22. 22. Urban Markets almost saturated Evolved cellular markets have penetration levels ranging from 30% to 50% Out of the new acquisitions the split between rural and urban is almost 50 : 50 Trend 3
  23. 23. Sacrifice on the altar of Acquisitions In the focus to be competitive, the Industry ARPU average has drastically fallen to levels of US $ 4 per month from about US $6 even a year backWhich is one of the lowest in the worldThe world-wide average ARPU is US $ 21.30 Trend 4
  24. 24. Monthly Bill Headed Southwards On an average there has been a 10 % to 15 % reduction in the monthly payoutgiving the consumer room to aspire for moreThe desire to sample newer products and services is more than ever before Trend 5
  25. 25. Product & Imagery Parity Same set of benefits. Same set of Problems. Nothing significantly different happening at the brand level Trend 6
  26. 26. With this Backdrop, lets evaluate the Competitive Landscape
  27. 27. The Key Players 3 Salient Players Grameen Phone clearly the National brand of Choice Strong Equity Invokes the Bangladeshi Pride Long time heavyweight leader in terms of numbers (subscriptions, ARPU, Coverage, Growth, etc.) Innovative Products Only one to have an youth brand in the portfolio A strong challenger brand - Banglalink The Only recent entrant who has been able to communicate a clear imagery in the market and dent the market upside down. AKtel the No. 2 brand in the country A strong product portfolioHowever the brand is yet to forge a clear identity in the consumers mind
  28. 28. Communication Banglalink has made regular attempts with the play of tiger / agent of change / aggressive price cut / heavyweight spender and so on. Grameen Phone also has maintained attempts with the leadership image to retain and grow further. Noticeable efforts were there to appropriate and leverage specific product innovations by AKtel. For AKtel not enough has been done at the master brand level.
  29. 29. The New Players The pool has widened and the options for the cost conscious user has multiplied The market is going to get more competitive once the new players pan out across the nation and get their infrastructure in place
  30. 30. The Market is on the verge of taking the next flight A situation where the neighboring Indian telecom market was there a few years back
  31. 31. The Indian Paradigm 1. Parity Market 2. No Differentiation 3. Plummeting Tariffs 4. Falling ARPUS
  32. 32. Suddenly A Lifeline emerged for the operatorsIncreasing demand for VAS meant potential to generate revenue and shore up the plummeting ARPUs The Indian Paradigm
  33. 33. VAS Finally dropped anchor 1. Over 100million smss everyday, 1 million paid ring-tone downloads everyday. 2. Contributes to 7-8% of telecom industry revenue, likely to contribute up-to 20 % in the next 3 years. 3. Total market today around 2850 crores, likely to reach 4850 crores in the next 5 years. Around 22% of VAS revenues come from caller ring back tones, 18% from ringtones, 7% each from wall papers and games, 15% from voice-based info services and 31% from text-based information services. The Indian Paradigm
  34. 34. Brands began to drive differentiation through Value Added Technology Led Innovations in the VAS & GPRS Space
  35. 35. With this Backdrop, Lets do some Crystal Ball Gazing on the Bangladesh Market
  36. 36. Voice will be Vanilla Voice will play no role in building disposition or preferenceIn the next few years, with growing importance of VAS, revenue contribution from pure voice services will diminish Prospect 1
  37. 37. The Fallout As we go along, the 3 Cs of Clarity, Connectivity and Coverage, that used to be critical attributes earlier, will become hygeine
  38. 38. Prospect 2 A The more evolved user A large section of the audience would evolve to be a discerning user and therefore demand more & more value additions VAS already growing at 10 % per annum Technology Integration would be critical
  39. 39. Technology will continue to unravel new possibilities Exploding demand would warrant upgraded capabilities from both ends Handset & Network Prospect 3
  40. 40. Handsets will drive Imagery Will continue to symbolize Success, Youthfulness and Progress across profiles
  41. 41. The desire to be seen with what is in Replacement Cycles will alter Prospect 4
  42. 42. Ambassadors of tomorrow Prospect 5 The Young & the Youthful will dominate the scene The young and vibrant between 17 and 21 To them a mobile is not just a deviceit is the means to express their individuality, a medium to share and exchange feelings, thoughts, emotions, trends, fads, jokesthe next best medium after the internet They would seek to express much more through a mobile device
  43. 43. Prospect 6 Contrasting Impact on Revenue While the mass market would drive the ARPUs down, the top end of the market would provide the opportunity for shoring up revenues through high-end VAS
  44. 44. With this backdrop, lets look at few of the Challenges that confronts the brand
  45. 45. 1 The Balance between Numbers & Revenue 2 Building differentiation through innovation 3 Connectivity in Smaller towns and the heartland 4 Building Loyalty at the top-end and connecting with the youth 5 Building Preference and preventing churn at the mass end 6 Prepare grounds for high end data services 7 Keep strengthening the basic 3 Cs
  46. 46. The Strategic Imperative Gear up for an evolving market with regards to Communication Products Network Refresh imagery and bring to life the numerous possibilities on the AKTEL Network Clearly earmark how each of the product portfolios would address the different segments
  47. 47. Most Importantly clearly articulate and define the Master Brand Proposition
  48. 48. Identifying the most salient Blocks that will Determine the strategy 1. Consumer 2. Market 3. Brand
  49. 49. Consumers are experiencing the benefits of a Gung-Ho Macro environment The revolution in the Telecom space has been accompanied with Enhancement of life quality across the board The Consumer has begun to recognize the role of a mobile in living a life that is meaningful, socially fulfilling & progressive Every Bangladeshi is rediscovering the emotions associat