The GSM player will charge per second, and not per minute
NTT DoCoMo’s stake in unlisted entity Tata Teleservices Ltd (TTSL) is just 26 per cent, but the Japanese brand is getting the pride of place in the country’s first dual branding strategy in the telecom space.
If the campaign announcing the launch of Tata DoCoMo’s GSM services launch from August 1 surprised many, the Tata Group has an answer. Abdul Khan, Tata DoCoMo Marketing Head - Tata Teleservices Maharashtra Ltd (TTML), says it was a conscious strategy to build the DoCoMo name as it’s a new brand in India. In any case, Khan says “Tata is a household name in the country and is considered as one of the most trusted names across the world. We don’t need to build up the Tata brand name”.
The campaign, which will run through the festive season, aims to stand out with two key selling points: one, its tagline ‘Do the New’; and two, its differentiated tariff plans.
Many feel ‘Do the New’ has an uncanny similarity with ‘Do the Dew’, the famous campaign of Pepsico’s beverage brand, and even Nike’s much-celebrated ‘Just Do It’, but Tata group executives say that the inspiration for the new GSM player’s tagline came from the first two letters of DoCoMo, and nowhere else.
‘Do the new’ is a concept that prompts every citizen to do something new, even if it’s a small thing. For Mumbai and the rest of Maharashtra circles (including Goa), the company has roped in Pooja Chopra (Femina Miss India World 2009) and Krushnaa Patil (the youngest girl to conquer Mount Everest) as brand ambassadors. Chopra and Patil are do-ers for the company. They are young achievers and are the personification of the Tata DoCoMo brand, the company says. Adds Khan: “We’re focusing on the thought of ‘Do’.”
For Tata DoCoMo, ‘doing the new’ has also meant charging the user per second, and not per minute. The basic tariff is one paisa per second for both local and STD calls, a
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deviation from the industry practice of a 60-second billing. The company claims that this plan, termed as ‘pay as you use’, is gaining popularity in the market.
However, not everybody agrees. For example, HSBC Global Research has termed the scheme as “most disruptive”, stating that if all the telecom companies followed suit, this would lower the sector’s revenue by 10-15 per cent.
That, however, is not stopping Tata DoCoMo from going ahead with more such plans. Another example is its recently launched ‘lifetime plan’, wherein the mobile number will not lapse, even if it’s not recharged within a specific period.
Ambi M G Parameswaran, Executive Director and CEO DraftFCB Ulka Advertising, which conceptualised the campaign, says, “From the beginning, it (Tata DoCoMo) was conceived as a young and vibrant brand. We wanted the campaign to appeal to the customer looking at using a new telecom service”.
“We were aiming to create a spot for Tata DoCoMo by blending brand and persuasion,” Ambi says.
Industry analysts say that the DoCoMo strategy is understandable as the company had to do something unique to break out of the clutter. At least five telecom brands have been launched in the last 15 months, and many more are expected by the end of the year. So ‘doing something new’ was the only way.