Description
The report talks about branding and planning of TATA Docomo. It covers a survey on various branding elements.
2010
TATA DOCOMO– Analysing the Brand Planning Model
TATA DOCOMO– Analysing the Brand Planning Model
Table of Contents
2010
Introduction ................................................................................................................................ 3 Indian Telecom Industry ........................................................................................................ 3 TATA DOCOMO .................................................................................................................. 3 Strategic Brand Analysis............................................................................................................ 4 Customer Analysis ................................................................................................................. 4 Competitor Analysis .............................................................................................................. 5 Self Analysis ........................................................................................................................ 10 Brand Identity System.............................................................................................................. 11 Brand Elements .................................................................................................................... 12 Brand Customer Relationships ............................................................................................ 15 Conclusion ............................................................................................................................... 17 References ................................................................................................................................ 17
2
TATA DOCOMO– Analysing the Brand Planning Model
Introduction
2010
In the current decade one industry which has stood out spectacularly due to its explosive growth has been the telecom industry in India. With the opening up of regulations and entry of private players in the Industry it has been one of the drivers of the Indian economy. The project report attempts at understanding and analyzing the Bran Planning Model of one of its latest entrants tipped to overturn the structure of the industry with its innovative practices and services TATA DOCOMO. Indian Telecom Industry The Indian telecommunication industry, with about 506 million mobile phone connections (as of Nov 2009), is the third largest telecommunication network in the world and the second largest in terms of number of wireless connections. The Indian telecommunications industry is also one of the fastest growing in the world and India is projected to become the second largest telecom market globally by 2010. For the past decade or so, telecommunication activities have gained momentum in India. India has witnessed unparalleled growth in terms of the number of new customer connections as well as the dispersion of network coverage. India added 113.26 million new customers in 2008, the largest globally. The country's cellular base witnessed close to 50 per cent growth in 2008, with an average 9.5 million customers added every month. According to the Telecom Regulatory Authority of India (TRAI), the month of November 2009 saw telecom operators in India register 17.65 million new mobile subscribers. In all, the country's total telephone subscriber base has increased 3.34 per cent, from 525.65 million in October 2009 to 543.2 million at the end of November 2009, according to TRAI. The wireless teledensity in India too stands at 43.15, indicating the rapid growth in penetration from the start of the decade. This also serves as an opportunity for new mobile operators to tap into the huge potential that exists especially in the rural areas of the country. In addition, with the government opening up the skies to the new 3G technology, the telecom industry is likely to see major players in the GSM and CDMA space battling it out with new players to maintain their market supremacy.
TATA DOCOMO
TATA DOCOMO was created out of a strategic alliance between TATA Teleservices Limited and Japan?s largest telecom company NTT DOCOMO in November 2008. The new entity “TATA DOCOMO” began rolling out GSM telecom services across India with an
3
TATA DOCOMO– Analysing the Brand Planning Model
2010
aggressive launch in June 2009. At the time of launch, the telecom space was characterized by large established players like Airtel, Vodafone, IDEA, Reliance (CDMA + GSM). In addition, with the government granting new pan-India licenses; thereby opening up exiting circles to new telecom operators, it was essential for the company to be able to generate the required buzz about the new launch. TATA DOCOMO stormed into the big league right away with an array of attractive schemes – the “1 paise per second billing” scheme on local and STD calls as well as other value added services like diet sms, free voicemail, fast downloads on GPRS, etc. clearly differentiated from existing competition. This was backed by a “high-decibel” ad blitz with the tagline “Do the New” across print, radio, television and OOH as well as on social networking sites as well as sponsorship of telecast of sporting events like the English Premier League. TATA DOCOMO (and TTSL) was thus able to attract new mobile customers to the brand, and was one of the fastest growing telecom brands in terms of new customer acquisitions.
Strategic Brand Analysis
Customer Analysis
The customer has recently got unlimited access to a number of options in the market owing to the entry of several new products. Earlier the customers of the telecom service operators were used to long delays of installation by the public sector organization BSNL and MTNL. When mobile service operations were introduced in India, customers were charged at exorbitant rates with even incoming charges going as high as Rs. 16 per minute. The industry was revolutionized with the advent of low cost mobile telephony by Reliance with its pioneer scheme at the start of the decade. The customer segmentation for TATA DOCOMO is mainly the urban and rural market. It has launched its services in the metros gradually proceeding towards rural expansion. The trends in the market can be noted as under o An expanding Indian economy with increased focus on the services sector o Population mix moving favorably towards a younger age profile o Urbanization with increasing incomes
4
TATA DOCOMO– Analysing the Brand Planning Model
2010
The above trends have increased the market attractiveness for new entrants into the industry as well as focussed segmentation of the customers. There are players like Virgin Mobile which are specifically targeted towards the young adult age group. According to the survey we conducted the following attributes were most important for rating any telecom service provider o Connectivity/ Network Coverage o Voice Clarity/ Call Drop o V.A.S. o Activation Based on the above attributes the various service providers were plotted on a perceptual map in order to understand their importance on the map.
According to the Perceptual Map Quadrants it can be interpreted that TATA DOCOMO ranks lower than Airtel on Activation but is better provider of Connectivity especially in operating circle of Mumbai where it is actively promoted.
Competitor Analysis
The competition has intensified the past few months with new players and schemes coming in. There has never been a better time for the customer to get a mobile phone connection.
5
TATA DOCOMO– Analysing the Brand Planning Model
2010
There are at least six if not more operators to choose from in ever circle. In June 09, TATA DOCOMO broke the old system of tariff by introducing per second billing system. As soon as they did this, the other followed suit with price cuts everywhere. Suddenly the idea of calls being free was not so outrageous. The prices were reduced to such an extent that the viability of the business was in questions. The competitive environment of TATA DOCOMO can be looked at from the following perspectives ? ? ? ? ? Market share Spectrum allocation ARPU (Average Revenue per User) Market capitalization Various VAS (Value Added Services)
MARKET SHARE
The government issued fresh licenses in 2008.As a result of this the market gets crowded though incumbents? still hold larger market shares are shown above. However a point to note is that the new players have lower entry costs with very deep pockets. They also have no legacy issues like the older players and hence are more adept to changes market situations. The cost of infrastructure has reduced dramatically due to the market growth and DOCOMO had an advantage here.
6
TATA DOCOMO– Analysing the Brand Planning Model
SPECTRUM ALLOCATION
2010
Spectrum allotted to GSM operators in Delhi and Mumbai
Company In 900 Mhz band In 18000 Mhz band Total allotment Spectrum charge as a % of adjusted gross revenue Delhi Mumbai Delhi Mumbai Delhi Mumbai Delhi Mumbai
MTNL VODAFONE BHARTI IDEA BPL AIRCEL ETISALAT DB RELAINCE DATACOM TATA UNITECH
6.2 8 8 Nil Nil Nil Nil Nil Nil Nil Nil
6.2 8 Nil Nil 8 Nil Nil Nil Nil Nil Nil
6.2 2 2 8 Nil 4.4 4.4 4.4 Nil Nil Nil
6.2 2 9.2 4.4 2 4.4 4.4 4.4 4.4 4.4 4.4
12.4 10 10 8 Nil 4.4 4.4 4.4 Nil Nil Nil
12.4 10 9.2 4.4 10 4.4 4.4 4.4 4.4 4.4 4.4
5 4 4 4 Nil 2 2 2 Nil Nil Nil 4 4 2 4 2 2 2 2 2 2
Even as the 3G allocation remains deadlocked in procedures operators are lobbying hard to grab a larger share of 2 g spectrum for free or at a lower auction fee. DOCOMO in this regard has virtually no presence in Delhi but has a strong presence in Mumbai. Also DOCOMO has entered the market with a number of innovations in its tariff and plan structure and that would be advantageous to it. ARPU (Average Revenue Per User) Average Revenues Per user in $’s Company AIRTEL VODAFONE RELAINCE 31-Mar-08 7.14 7 6.34 30-Jun-09 5.56 4.94 4.88
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TATA DOCOMO– Analysing the Brand Planning Model
SPICE IDEA MTNL ALL INDIA 5.87 5.74 3.8 4.74
2010
4.64 4.2 2.22 3.3
Due to the intense competition that ARPU?S has fallen drastically. Airtel from $ 7.14 has come down to $5.56 in just a matter of one year. With the rates being slashed indiscriminately, the ARPU?S are expected to further decrease. The new rates that are being followed by a number of companies are mentioned below: Price Wars Company Launch ON net(own network) Off net(other network)
TATA DOCOMO SISTEMA AIRTEL VODAFONE AIRCEL IDEA RELIANCE COMM
29-Sep 1 p/sec on local, std,isd 8-Oct .5 p/sec on local, std 30-Oct 1 p/sec on local, std 30-Oct 1 p/sec on local, std 31-Oct 1 p/sec on local, std 31-Oct 1 p/sec on local, std 3-Nov 1 p/sec on local, std
1p/sec .5p/sec 1.2p/sec 1.2p/sec 1p/sec 1p/sec 1p/sec
However, again the strong market entry of TATA DOCOMO and strong brand awareness had ensured that the price war strategy works in its favour.
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TATA DOCOMO– Analysing the Brand Planning Model
MARKET CAPITALIZATION
2010
As profits margins are becoming thin, the market capitalization of listed telecom companies has fallen. Though there have been some signs of recovery. Various VAS (Value Added Services) provided by TATA DOCOMO ? Night pack
It is for prepaid customers across all circles. Any Prepaid user of TATA DOCOMO can avail this
pack at Rs 14.The night pack has a validity of 30 days from the date of recharge and it allows a pre-paid subscriber to make calls on any local TATA DOCOMO, TATA Indicom or Virgin Mobile connection at 1 paisa per 5 seconds i.e. 12p/minute between 11 p.m. and 7 a.m. ?
GPRS Selection
TATA DOCOMO has launched two unlimited GPRS packages for its prepaid subscribers.
o Rs. 15 GPRS pack: It comes with 3 days validity with unlimited GPRS access o Rs 95 GPRS pack: This pack is valid for 30days with unlimited usage. ?
Missed call alerts and voicemail
TATA DOCOMO has absolutely Free MCA (Missed Cal Alerts) and free voicemail.
?
Caller Tunes
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TATA DOCOMO– Analysing the Brand Planning Model
2010
The charges for this service are Rs 30 for 30 days. The song download charges are Rs 15 per song. ?
Diet SMS
TATA DOCOMO has launched diet sms in which the customer can pay per character sent.
The cost of any „diet-sms? will be only 1 paise per character used, thereby providing complete value to customers. Furthermore, there will be no charge for spaces between words.
Self Analysis
TATA DOCOMO is positioned as a very youthful brand. Like today?s youth that wants to break the rules, TATA DOCOMO also wants to change the set paradigms. They are projecting themselves as brand that breaks through the clutter and tries to simplify things. In the telecom market, the tariff is rarely a point of differentiation and is saturated. However TATA DOCOMO„s main differentiating factor was the per second billing. Currently, the tariff scene in India is very complicated; so many schemes, different tariffs, various plan offerings, for consumers it is a humungous task to sift through all and find the right scheme. They just have one plan, be it off network or on network, STD, ISD. Apart from that they also have differentiate themselves on VAS platform. In the VAS space also we would replicate the pay per second model, which is in line with our strategy to simplify.
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TATA DOCOMO– Analysing the Brand Planning Model
SWOT
2010
Finally the SWOT analysis of TATA DOCOMO as a part of the TTLS can be as follows:
Brand Identity System
In order to understand the Brand Identity System of TATA DOCOMO it is essential to note that the value proposition and credibility of this brand be considered together. The following figure provides a glimpse of the Brand Identity System of TATA DOCOMO which are actively communicated with the help of its Brand Elements.
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TATA DOCOMO– Analysing the Brand Planning Model
Product
2010
• Innovative Services • Lowest Fare Provider
• Innovation • Global Partnership • TATA Brand as the Endorser • Do the New • Focus on Top of Mind Recall • Refreshing Bright Colours • 1 paise per second Billing Rate • New Experience • TATA as the endorser brand. • NTT Docomo Strong Player abroad.
Organization
Person
Symbol
Value Proposition
Credibility
The Brand Identity can be effectively communicated by the various brand elements that effectively describe the functional and emotional benefits of a brand.
Brand Elements
One of the most successful ways of building customer brand equity is through effective use of brand elements. As industries turn increasingly hostile, it is clear that strong brand equity is required for companies to survive and prosper. Brands should be managed as a strategic asset and this will become the key to a company?s competitive advantage. Name TATA DOCOMO is one of the newest entrants into the mobile space in India. TATA is one of the oldest industrial houses in India. It is a name that had withstood the test of time and is a symbol of trust. TATA house has upheld great values and principles and people regard it with great credibility. DOCOMO on the other hand is one of the biggest technological companies based in Japan. It is a symbol for technological leadership and competence. DOCOMO is the abbreviation for Do Communications over Mobile Network and in Japanese the word means everywhere. The two names together thus are a mark for trusted technology in the mobile space in India.
12
TATA DOCOMO– Analysing the Brand Planning Model
2010
Presence of the TATA name closely follows the TATA Sons branding strategy of „corporate branding?. All companies of TATA house carry the corporate brand name which imparts credibility and trust to the brand. DOCOMO uses the corporate brand name for all its mobile operations around the world. It is the biggest mobile operator in Japan and has played a major role in mobile telecommunications evolution in Japan. TATA DOCOMO is a non meaningful name in the mobile space. Any person who is unfamiliar with the brand name cannot associate it with the mobile segment, hence it is more transferrable. However the brand managers would not look forward to brand extension lest it dilutes the equity of the brand. The name is easy to pronounce, easy to remember and simple to use. The name does not communicate any performance related association, however the brand personality of both TATA and DOCOMO as separate entities are highly prevalent. The name is distinctive and will not be confused with any competitor?s names. The name imparts transferability across cultures and boundaries. Both TATA and DOCOMO are names that are famous world over and they have successfully communicated their brand values across boundaries. Thus the name embodies a brand with Indian values and Japanese competency. The name also represents a vivid, meaningful heritage of the individual corporate which captures their essence. Logo and Symbol In the highly competitive mobile segment in India where brands are beginning to get commoditised the symbol and visual imagery of TATA DOCOMO is refreshing. The company uses very bright colours that can attract customer attention and create brand recall. The symbol can provide both visual imagery and heritage to the brand. Following are some of the visual imagery adopted by TATA DOCOMO
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TATA DOCOMO– Analysing the Brand Planning Model
2010
All the above symbols or logos used by the brand are very bright colours that stand out. These colours appeal to the customers and help the brand to capture their attention span. The distinct symbol helps to create a differentiation for the brand and increases the awareness. The letters used by the brand are large, bold with distinct outlines. These signify the brand personality and image of TATA DOCOMO. Use of the above symbols has helped the brand to create a strong connection between brand identity and symbol. Audience just by taking a glance at the symbol will be easily reminded of TATA DOCOMO. The brand has made use of very different geometric shapes which are quite distinct from each other. Moreover the brand has not used the same logo repeatedly which signifies that it is ready for change! The brand symbol however does not convey any direct metaphors. The symbol also fails to convey any emotional, functional or self expressive benefits. However since TATA is prominently present in all visual images of the brand, it provides a sense of trust and credibility to the customers. The team feels that the brand could have incorporated a direct image that could provide functional benefit as the core proposition. This could have been the image of a mobile tower or crystal to signify network connectivity which is loud and clear. Packaging This carries a major part of the identity for name brands. However in mobile space customers are attracted to brands only on the basis of the offerings/promotions made, and packaging hardly carries a source for brand loyalty. As already mentioned above, TATA DOCOMO uses bright colours that can capture customer attention. The same is present on their packages for S.I.M. cards. Slogan „Do the New? is the core value proposition or positioning tag line of the brand. The brand was one of the first ones in India to introduce a range of new offerings such as per second billing etc. The brand identity of TATA DOCOMO is that of a trusted technology leader in the mobile space. Technology leaders are always expected to come out with differentiated and unique offerings. This is aptly communicated by the slogan. It also urges the customers to try out different things, be adventurous and innovative in life. The tag line is very meaningful and strikes an emotional chord with the customer. Since it is an emotional value proposition,
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TATA DOCOMO– Analysing the Brand Planning Model
2010
the brand has been able capture the customer mindshare. The slogan has been tailored to the positioning strategy and can reinforce the name. Since it is quite memorable and relevant, it becomes catchy and can be linked to the brand. Communicating the Brand Elements TATA DOCOMO has embarked on a mass communication drive to communicate the brand proposition to the customers. With media getting fragmented and intense price wars prevailing in the mobile market space, the brand has been successful in emerging out of the crowded market place. One brand element that has stood out in the communication campaign is the jingle used in ads. It is very catchy, energetic and has garnered recall. Most of the mobile operators are characterised by their use of jingles and similarly TATA DOCOMO has also followed suit. The TV ads adopted by the brand carry a lot of messages communicating the core values. “Why walk alone when you can dance together? is one of the newest ad campaign that has received good response from audience. It embodies the brand spirit and successfully communicates the essence of the brand. To emerge out of the crowded space, the brand can adopt more below the line communication strategies. Ambient and subliminal advertisement could be the way ahead to stay connected with the customers and augment brand recall.
Brand Customer Relationships
The Brand Customer relationship is built on many factors. But one of the main constituents is the promoter or the company behind the brand. The brand name, TATA DOCOMO in itself provides customers a dual advantage- the trusted service from the House of Tata, riding on the technological superiority of NTT DOCOMO. The role of NTT DOCOMO is to bring to India the various products and services that are offered in Japan-such as i-mode, LBS and mobile payment. This is aimed at giving TATA DOCOMO customers a flavour of tomorrow. They are continuously foraying into the future technologies like 3G and Long-Term Evolution (LTE)." The company unveiled a strikingly different logo-one that underscores the brand?s promise of providing „refreshingly different and a liberating experience.
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TATA DOCOMO– Analysing the Brand Planning Model
2010
As a partnership of two pioneering brands, TATA DOCOMO promises to deliver relevant new applications and services that will make everyday life simpler and more enjoyable for the consumer. In a market that is cluttered with many operators and confusing options, TATA DOCOMO aims to offer simplicity to consumers by being the country?s most transparent, innovative and liberating telecom brand. Retailer feedback ? ? ? ? ? ? ? Product is very much liked by customers, the innovative offers and various VAS are very attractive Around 85% awareness among the customers is there due to heavy advertising and publicity regarding the innovative pricing and VAS alone It is a very differentiated product in terms of value it provides to the customers But the knowledge regarding value added services, other than 1p/sec and diet sms, is low amongst certain retailers There is lack of communication between retailer and distributor regarding upcoming schemes and offers Lack of proper distribution channel in some parts Complaints regarding the inefficient customer care services are rampant and retailers have to deal with them most of the times for their customers Customer feedback ? ? ? ? ? ? Brand name and logo is very attractive in itself and is very different from other providers The TATA name associated with it gives the service a trustworthy image TATA DOCOMO has successfully established itself as being the first company to give 1p/sec and Diet SMS options to their customers This has created a differentiated position in the minds of customers Innovation is the key driver which promises to deliver a refreshing and a liberating experience attracting a lot of customers initially But poor customer service is hampering the Brand Customer relationship
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TATA DOCOMO– Analysing the Brand Planning Model
? ? Problems regarding network availability is rampant in all areas
2010
Other problems include SIM card transferability and confusion regarding std rates, which are further exacerbated by the lack of knowledge on part of the retailers
Conclusion
The only understanding of the Brand Identity Implementation can be gained from actual market results of the brand once it is launched. It can be observed that the brand though not widely available across India has been widely accepted as a Giant Killer. It has made the major players of the industry sit up and relook at their strategies. It can be gained that the industry is currently in turmoil due to the continuous focus of capturing an increasing pie of the expanding market. But it should be understood that only those players with understanding of the market and the ones who can capture the consumer?s imagination will continue to survive and prosper in the long run. TATA DOCOMO revolutionized the billing system in the country with per second billing but it needs to continuously adapt itself to the changing environment in order to come out as the eventual winner.
References
Books
Web Sites http://www.wikipedia.org/ http://www.tatadocomo.com/ http://www.scribd.com/doc/23863433/Brand-Management-Project http://www.scribd.com/doc/18086019/Doc-1 http://www.authorstream.com/Presentation/aSGuest30790-268346-excom-entertainment-pptpowerpoint/
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doc_684759680.pdf
The report talks about branding and planning of TATA Docomo. It covers a survey on various branding elements.
2010
TATA DOCOMO– Analysing the Brand Planning Model
TATA DOCOMO– Analysing the Brand Planning Model
Table of Contents
2010
Introduction ................................................................................................................................ 3 Indian Telecom Industry ........................................................................................................ 3 TATA DOCOMO .................................................................................................................. 3 Strategic Brand Analysis............................................................................................................ 4 Customer Analysis ................................................................................................................. 4 Competitor Analysis .............................................................................................................. 5 Self Analysis ........................................................................................................................ 10 Brand Identity System.............................................................................................................. 11 Brand Elements .................................................................................................................... 12 Brand Customer Relationships ............................................................................................ 15 Conclusion ............................................................................................................................... 17 References ................................................................................................................................ 17
2
TATA DOCOMO– Analysing the Brand Planning Model
Introduction
2010
In the current decade one industry which has stood out spectacularly due to its explosive growth has been the telecom industry in India. With the opening up of regulations and entry of private players in the Industry it has been one of the drivers of the Indian economy. The project report attempts at understanding and analyzing the Bran Planning Model of one of its latest entrants tipped to overturn the structure of the industry with its innovative practices and services TATA DOCOMO. Indian Telecom Industry The Indian telecommunication industry, with about 506 million mobile phone connections (as of Nov 2009), is the third largest telecommunication network in the world and the second largest in terms of number of wireless connections. The Indian telecommunications industry is also one of the fastest growing in the world and India is projected to become the second largest telecom market globally by 2010. For the past decade or so, telecommunication activities have gained momentum in India. India has witnessed unparalleled growth in terms of the number of new customer connections as well as the dispersion of network coverage. India added 113.26 million new customers in 2008, the largest globally. The country's cellular base witnessed close to 50 per cent growth in 2008, with an average 9.5 million customers added every month. According to the Telecom Regulatory Authority of India (TRAI), the month of November 2009 saw telecom operators in India register 17.65 million new mobile subscribers. In all, the country's total telephone subscriber base has increased 3.34 per cent, from 525.65 million in October 2009 to 543.2 million at the end of November 2009, according to TRAI. The wireless teledensity in India too stands at 43.15, indicating the rapid growth in penetration from the start of the decade. This also serves as an opportunity for new mobile operators to tap into the huge potential that exists especially in the rural areas of the country. In addition, with the government opening up the skies to the new 3G technology, the telecom industry is likely to see major players in the GSM and CDMA space battling it out with new players to maintain their market supremacy.
TATA DOCOMO
TATA DOCOMO was created out of a strategic alliance between TATA Teleservices Limited and Japan?s largest telecom company NTT DOCOMO in November 2008. The new entity “TATA DOCOMO” began rolling out GSM telecom services across India with an
3
TATA DOCOMO– Analysing the Brand Planning Model
2010
aggressive launch in June 2009. At the time of launch, the telecom space was characterized by large established players like Airtel, Vodafone, IDEA, Reliance (CDMA + GSM). In addition, with the government granting new pan-India licenses; thereby opening up exiting circles to new telecom operators, it was essential for the company to be able to generate the required buzz about the new launch. TATA DOCOMO stormed into the big league right away with an array of attractive schemes – the “1 paise per second billing” scheme on local and STD calls as well as other value added services like diet sms, free voicemail, fast downloads on GPRS, etc. clearly differentiated from existing competition. This was backed by a “high-decibel” ad blitz with the tagline “Do the New” across print, radio, television and OOH as well as on social networking sites as well as sponsorship of telecast of sporting events like the English Premier League. TATA DOCOMO (and TTSL) was thus able to attract new mobile customers to the brand, and was one of the fastest growing telecom brands in terms of new customer acquisitions.
Strategic Brand Analysis
Customer Analysis
The customer has recently got unlimited access to a number of options in the market owing to the entry of several new products. Earlier the customers of the telecom service operators were used to long delays of installation by the public sector organization BSNL and MTNL. When mobile service operations were introduced in India, customers were charged at exorbitant rates with even incoming charges going as high as Rs. 16 per minute. The industry was revolutionized with the advent of low cost mobile telephony by Reliance with its pioneer scheme at the start of the decade. The customer segmentation for TATA DOCOMO is mainly the urban and rural market. It has launched its services in the metros gradually proceeding towards rural expansion. The trends in the market can be noted as under o An expanding Indian economy with increased focus on the services sector o Population mix moving favorably towards a younger age profile o Urbanization with increasing incomes
4
TATA DOCOMO– Analysing the Brand Planning Model
2010
The above trends have increased the market attractiveness for new entrants into the industry as well as focussed segmentation of the customers. There are players like Virgin Mobile which are specifically targeted towards the young adult age group. According to the survey we conducted the following attributes were most important for rating any telecom service provider o Connectivity/ Network Coverage o Voice Clarity/ Call Drop o V.A.S. o Activation Based on the above attributes the various service providers were plotted on a perceptual map in order to understand their importance on the map.
According to the Perceptual Map Quadrants it can be interpreted that TATA DOCOMO ranks lower than Airtel on Activation but is better provider of Connectivity especially in operating circle of Mumbai where it is actively promoted.
Competitor Analysis
The competition has intensified the past few months with new players and schemes coming in. There has never been a better time for the customer to get a mobile phone connection.
5
TATA DOCOMO– Analysing the Brand Planning Model
2010
There are at least six if not more operators to choose from in ever circle. In June 09, TATA DOCOMO broke the old system of tariff by introducing per second billing system. As soon as they did this, the other followed suit with price cuts everywhere. Suddenly the idea of calls being free was not so outrageous. The prices were reduced to such an extent that the viability of the business was in questions. The competitive environment of TATA DOCOMO can be looked at from the following perspectives ? ? ? ? ? Market share Spectrum allocation ARPU (Average Revenue per User) Market capitalization Various VAS (Value Added Services)
MARKET SHARE
The government issued fresh licenses in 2008.As a result of this the market gets crowded though incumbents? still hold larger market shares are shown above. However a point to note is that the new players have lower entry costs with very deep pockets. They also have no legacy issues like the older players and hence are more adept to changes market situations. The cost of infrastructure has reduced dramatically due to the market growth and DOCOMO had an advantage here.
6
TATA DOCOMO– Analysing the Brand Planning Model
SPECTRUM ALLOCATION
2010
Spectrum allotted to GSM operators in Delhi and Mumbai
Company In 900 Mhz band In 18000 Mhz band Total allotment Spectrum charge as a % of adjusted gross revenue Delhi Mumbai Delhi Mumbai Delhi Mumbai Delhi Mumbai
MTNL VODAFONE BHARTI IDEA BPL AIRCEL ETISALAT DB RELAINCE DATACOM TATA UNITECH
6.2 8 8 Nil Nil Nil Nil Nil Nil Nil Nil
6.2 8 Nil Nil 8 Nil Nil Nil Nil Nil Nil
6.2 2 2 8 Nil 4.4 4.4 4.4 Nil Nil Nil
6.2 2 9.2 4.4 2 4.4 4.4 4.4 4.4 4.4 4.4
12.4 10 10 8 Nil 4.4 4.4 4.4 Nil Nil Nil
12.4 10 9.2 4.4 10 4.4 4.4 4.4 4.4 4.4 4.4
5 4 4 4 Nil 2 2 2 Nil Nil Nil 4 4 2 4 2 2 2 2 2 2
Even as the 3G allocation remains deadlocked in procedures operators are lobbying hard to grab a larger share of 2 g spectrum for free or at a lower auction fee. DOCOMO in this regard has virtually no presence in Delhi but has a strong presence in Mumbai. Also DOCOMO has entered the market with a number of innovations in its tariff and plan structure and that would be advantageous to it. ARPU (Average Revenue Per User) Average Revenues Per user in $’s Company AIRTEL VODAFONE RELAINCE 31-Mar-08 7.14 7 6.34 30-Jun-09 5.56 4.94 4.88
7
TATA DOCOMO– Analysing the Brand Planning Model
SPICE IDEA MTNL ALL INDIA 5.87 5.74 3.8 4.74
2010
4.64 4.2 2.22 3.3
Due to the intense competition that ARPU?S has fallen drastically. Airtel from $ 7.14 has come down to $5.56 in just a matter of one year. With the rates being slashed indiscriminately, the ARPU?S are expected to further decrease. The new rates that are being followed by a number of companies are mentioned below: Price Wars Company Launch ON net(own network) Off net(other network)
TATA DOCOMO SISTEMA AIRTEL VODAFONE AIRCEL IDEA RELIANCE COMM
29-Sep 1 p/sec on local, std,isd 8-Oct .5 p/sec on local, std 30-Oct 1 p/sec on local, std 30-Oct 1 p/sec on local, std 31-Oct 1 p/sec on local, std 31-Oct 1 p/sec on local, std 3-Nov 1 p/sec on local, std
1p/sec .5p/sec 1.2p/sec 1.2p/sec 1p/sec 1p/sec 1p/sec
However, again the strong market entry of TATA DOCOMO and strong brand awareness had ensured that the price war strategy works in its favour.
8
TATA DOCOMO– Analysing the Brand Planning Model
MARKET CAPITALIZATION
2010
As profits margins are becoming thin, the market capitalization of listed telecom companies has fallen. Though there have been some signs of recovery. Various VAS (Value Added Services) provided by TATA DOCOMO ? Night pack
It is for prepaid customers across all circles. Any Prepaid user of TATA DOCOMO can avail this
pack at Rs 14.The night pack has a validity of 30 days from the date of recharge and it allows a pre-paid subscriber to make calls on any local TATA DOCOMO, TATA Indicom or Virgin Mobile connection at 1 paisa per 5 seconds i.e. 12p/minute between 11 p.m. and 7 a.m. ?
GPRS Selection
TATA DOCOMO has launched two unlimited GPRS packages for its prepaid subscribers.
o Rs. 15 GPRS pack: It comes with 3 days validity with unlimited GPRS access o Rs 95 GPRS pack: This pack is valid for 30days with unlimited usage. ?
Missed call alerts and voicemail
TATA DOCOMO has absolutely Free MCA (Missed Cal Alerts) and free voicemail.
?
Caller Tunes
9
TATA DOCOMO– Analysing the Brand Planning Model
2010
The charges for this service are Rs 30 for 30 days. The song download charges are Rs 15 per song. ?
Diet SMS
TATA DOCOMO has launched diet sms in which the customer can pay per character sent.
The cost of any „diet-sms? will be only 1 paise per character used, thereby providing complete value to customers. Furthermore, there will be no charge for spaces between words.
Self Analysis
TATA DOCOMO is positioned as a very youthful brand. Like today?s youth that wants to break the rules, TATA DOCOMO also wants to change the set paradigms. They are projecting themselves as brand that breaks through the clutter and tries to simplify things. In the telecom market, the tariff is rarely a point of differentiation and is saturated. However TATA DOCOMO„s main differentiating factor was the per second billing. Currently, the tariff scene in India is very complicated; so many schemes, different tariffs, various plan offerings, for consumers it is a humungous task to sift through all and find the right scheme. They just have one plan, be it off network or on network, STD, ISD. Apart from that they also have differentiate themselves on VAS platform. In the VAS space also we would replicate the pay per second model, which is in line with our strategy to simplify.
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TATA DOCOMO– Analysing the Brand Planning Model
SWOT
2010
Finally the SWOT analysis of TATA DOCOMO as a part of the TTLS can be as follows:
Brand Identity System
In order to understand the Brand Identity System of TATA DOCOMO it is essential to note that the value proposition and credibility of this brand be considered together. The following figure provides a glimpse of the Brand Identity System of TATA DOCOMO which are actively communicated with the help of its Brand Elements.
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TATA DOCOMO– Analysing the Brand Planning Model
Product
2010
• Innovative Services • Lowest Fare Provider
• Innovation • Global Partnership • TATA Brand as the Endorser • Do the New • Focus on Top of Mind Recall • Refreshing Bright Colours • 1 paise per second Billing Rate • New Experience • TATA as the endorser brand. • NTT Docomo Strong Player abroad.
Organization
Person
Symbol
Value Proposition
Credibility
The Brand Identity can be effectively communicated by the various brand elements that effectively describe the functional and emotional benefits of a brand.
Brand Elements
One of the most successful ways of building customer brand equity is through effective use of brand elements. As industries turn increasingly hostile, it is clear that strong brand equity is required for companies to survive and prosper. Brands should be managed as a strategic asset and this will become the key to a company?s competitive advantage. Name TATA DOCOMO is one of the newest entrants into the mobile space in India. TATA is one of the oldest industrial houses in India. It is a name that had withstood the test of time and is a symbol of trust. TATA house has upheld great values and principles and people regard it with great credibility. DOCOMO on the other hand is one of the biggest technological companies based in Japan. It is a symbol for technological leadership and competence. DOCOMO is the abbreviation for Do Communications over Mobile Network and in Japanese the word means everywhere. The two names together thus are a mark for trusted technology in the mobile space in India.
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TATA DOCOMO– Analysing the Brand Planning Model
2010
Presence of the TATA name closely follows the TATA Sons branding strategy of „corporate branding?. All companies of TATA house carry the corporate brand name which imparts credibility and trust to the brand. DOCOMO uses the corporate brand name for all its mobile operations around the world. It is the biggest mobile operator in Japan and has played a major role in mobile telecommunications evolution in Japan. TATA DOCOMO is a non meaningful name in the mobile space. Any person who is unfamiliar with the brand name cannot associate it with the mobile segment, hence it is more transferrable. However the brand managers would not look forward to brand extension lest it dilutes the equity of the brand. The name is easy to pronounce, easy to remember and simple to use. The name does not communicate any performance related association, however the brand personality of both TATA and DOCOMO as separate entities are highly prevalent. The name is distinctive and will not be confused with any competitor?s names. The name imparts transferability across cultures and boundaries. Both TATA and DOCOMO are names that are famous world over and they have successfully communicated their brand values across boundaries. Thus the name embodies a brand with Indian values and Japanese competency. The name also represents a vivid, meaningful heritage of the individual corporate which captures their essence. Logo and Symbol In the highly competitive mobile segment in India where brands are beginning to get commoditised the symbol and visual imagery of TATA DOCOMO is refreshing. The company uses very bright colours that can attract customer attention and create brand recall. The symbol can provide both visual imagery and heritage to the brand. Following are some of the visual imagery adopted by TATA DOCOMO
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TATA DOCOMO– Analysing the Brand Planning Model
2010
All the above symbols or logos used by the brand are very bright colours that stand out. These colours appeal to the customers and help the brand to capture their attention span. The distinct symbol helps to create a differentiation for the brand and increases the awareness. The letters used by the brand are large, bold with distinct outlines. These signify the brand personality and image of TATA DOCOMO. Use of the above symbols has helped the brand to create a strong connection between brand identity and symbol. Audience just by taking a glance at the symbol will be easily reminded of TATA DOCOMO. The brand has made use of very different geometric shapes which are quite distinct from each other. Moreover the brand has not used the same logo repeatedly which signifies that it is ready for change! The brand symbol however does not convey any direct metaphors. The symbol also fails to convey any emotional, functional or self expressive benefits. However since TATA is prominently present in all visual images of the brand, it provides a sense of trust and credibility to the customers. The team feels that the brand could have incorporated a direct image that could provide functional benefit as the core proposition. This could have been the image of a mobile tower or crystal to signify network connectivity which is loud and clear. Packaging This carries a major part of the identity for name brands. However in mobile space customers are attracted to brands only on the basis of the offerings/promotions made, and packaging hardly carries a source for brand loyalty. As already mentioned above, TATA DOCOMO uses bright colours that can capture customer attention. The same is present on their packages for S.I.M. cards. Slogan „Do the New? is the core value proposition or positioning tag line of the brand. The brand was one of the first ones in India to introduce a range of new offerings such as per second billing etc. The brand identity of TATA DOCOMO is that of a trusted technology leader in the mobile space. Technology leaders are always expected to come out with differentiated and unique offerings. This is aptly communicated by the slogan. It also urges the customers to try out different things, be adventurous and innovative in life. The tag line is very meaningful and strikes an emotional chord with the customer. Since it is an emotional value proposition,
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TATA DOCOMO– Analysing the Brand Planning Model
2010
the brand has been able capture the customer mindshare. The slogan has been tailored to the positioning strategy and can reinforce the name. Since it is quite memorable and relevant, it becomes catchy and can be linked to the brand. Communicating the Brand Elements TATA DOCOMO has embarked on a mass communication drive to communicate the brand proposition to the customers. With media getting fragmented and intense price wars prevailing in the mobile market space, the brand has been successful in emerging out of the crowded market place. One brand element that has stood out in the communication campaign is the jingle used in ads. It is very catchy, energetic and has garnered recall. Most of the mobile operators are characterised by their use of jingles and similarly TATA DOCOMO has also followed suit. The TV ads adopted by the brand carry a lot of messages communicating the core values. “Why walk alone when you can dance together? is one of the newest ad campaign that has received good response from audience. It embodies the brand spirit and successfully communicates the essence of the brand. To emerge out of the crowded space, the brand can adopt more below the line communication strategies. Ambient and subliminal advertisement could be the way ahead to stay connected with the customers and augment brand recall.
Brand Customer Relationships
The Brand Customer relationship is built on many factors. But one of the main constituents is the promoter or the company behind the brand. The brand name, TATA DOCOMO in itself provides customers a dual advantage- the trusted service from the House of Tata, riding on the technological superiority of NTT DOCOMO. The role of NTT DOCOMO is to bring to India the various products and services that are offered in Japan-such as i-mode, LBS and mobile payment. This is aimed at giving TATA DOCOMO customers a flavour of tomorrow. They are continuously foraying into the future technologies like 3G and Long-Term Evolution (LTE)." The company unveiled a strikingly different logo-one that underscores the brand?s promise of providing „refreshingly different and a liberating experience.
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TATA DOCOMO– Analysing the Brand Planning Model
2010
As a partnership of two pioneering brands, TATA DOCOMO promises to deliver relevant new applications and services that will make everyday life simpler and more enjoyable for the consumer. In a market that is cluttered with many operators and confusing options, TATA DOCOMO aims to offer simplicity to consumers by being the country?s most transparent, innovative and liberating telecom brand. Retailer feedback ? ? ? ? ? ? ? Product is very much liked by customers, the innovative offers and various VAS are very attractive Around 85% awareness among the customers is there due to heavy advertising and publicity regarding the innovative pricing and VAS alone It is a very differentiated product in terms of value it provides to the customers But the knowledge regarding value added services, other than 1p/sec and diet sms, is low amongst certain retailers There is lack of communication between retailer and distributor regarding upcoming schemes and offers Lack of proper distribution channel in some parts Complaints regarding the inefficient customer care services are rampant and retailers have to deal with them most of the times for their customers Customer feedback ? ? ? ? ? ? Brand name and logo is very attractive in itself and is very different from other providers The TATA name associated with it gives the service a trustworthy image TATA DOCOMO has successfully established itself as being the first company to give 1p/sec and Diet SMS options to their customers This has created a differentiated position in the minds of customers Innovation is the key driver which promises to deliver a refreshing and a liberating experience attracting a lot of customers initially But poor customer service is hampering the Brand Customer relationship
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TATA DOCOMO– Analysing the Brand Planning Model
? ? Problems regarding network availability is rampant in all areas
2010
Other problems include SIM card transferability and confusion regarding std rates, which are further exacerbated by the lack of knowledge on part of the retailers
Conclusion
The only understanding of the Brand Identity Implementation can be gained from actual market results of the brand once it is launched. It can be observed that the brand though not widely available across India has been widely accepted as a Giant Killer. It has made the major players of the industry sit up and relook at their strategies. It can be gained that the industry is currently in turmoil due to the continuous focus of capturing an increasing pie of the expanding market. But it should be understood that only those players with understanding of the market and the ones who can capture the consumer?s imagination will continue to survive and prosper in the long run. TATA DOCOMO revolutionized the billing system in the country with per second billing but it needs to continuously adapt itself to the changing environment in order to come out as the eventual winner.
References
Books
Web Sites http://www.wikipedia.org/ http://www.tatadocomo.com/ http://www.scribd.com/doc/23863433/Brand-Management-Project http://www.scribd.com/doc/18086019/Doc-1 http://www.authorstream.com/Presentation/aSGuest30790-268346-excom-entertainment-pptpowerpoint/
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doc_684759680.pdf