Dawn for Airtel?
Airtel Telecommunications which started operation in 2001 alongside MTN has been walking since then. Now it is girding its loins to run. With the seriousness of its preparation, the telco firm which is third in terms of subscriber base behind MTN and Glo is ready to spring. Daniel Obi examines some of the efforts it is making to re-gain lost grounds.
Early days
On January 19, 2001, when Nigeria sold the Digital Mobile License which led to telecommunication industry deregulation that ushered in GSM companies, Econet, now Airtel and MTN were the first two mobile operators to acquire the licenses and started operations almost immediately. On August 7 and 8, 2001, Econet Wireless Nigeria and MTN Nigeria launched their GSM services respectively.
Their entry which changed the face of hitherto wealthy- dominated telecom landscape created excitement in the market despite the huge cost associated with acquisition of phones and SIM cards. There was enthusiasm for consumers possessing either MTN or Econet then, as competition between the two organisations was fair. As analysts said, the two organizations reaped huge from the sale of SIM cards and high call tariffs.
Perception and Econet transitions
As Nigerians were settling down with Econet as a brand in the early days of its operations, the brand changed its name and ownership to Vodacom, as the South Africa’s second largest telecommunication brand bought in to Econet. However, according to the analysts, “Vodacom did not last long in the Nigeria. The development prompted Nigeria’s first GSM brand to operate in the country without identifiable corporate name and strategy for over two months.
The circumstances created Vmobile, which was made up of a group of Nigerian entrepreneurs who vowed never to let the brand exit without a fight. They (Vmobile) led the unbranded Vmobile to the threshold of MTC, owners of Celtel brand that later acquired the Vmobile and rebranded it, Celtel in Nigeria.
Two years after the success story of Celtel, Zain announced takeover of the Celtel brand from MTC across Africa and Middle East. It would be renamed Celtel in 2006. But two years later, precisely on August 1, 2008, Celtel made way for Zain following the global acquisition of Celtel International by MTC Group, which transformed to Zain”. In just another two years interval, precisely in 2010, Zain was acquired by Bharti Airtel for $9 billion and rebranded to ‘Airtel’. Bharti is an Indian business concern who had long desired to have footprint in Africa, a continent of hope and opportunity.
The acquisition of Zain by Bharti said to be the largest telecoms operator in India gave it the foothold in the Nigerian market as Zain was seen undergoing another name change for the 6th time. According to analysts “this is the only GSM telecommunications company in Nigeria that has changed its name and ownership more than five times in the past years of operations in Nigeria”.
During these several name changes of Airtel to reflect the ownership, Globacom, owned by an indigenous business mogul launched its services on August 29, 2003 and Etisalat, with strong Middle East presence launched operations in Nigeria in October 23,2008.
Airtel struggles
With more players in the industry, competition intensified. As Zain then, and now Airtel struggles to explain the reasons for the frequent changes and entrench its name, MTN had gone far ahead while Glo and Etisalat with aggressive and innovative marketing approaches had cut bigger pies for themselves in the market.
Recent market statistics from the Nigerian Communications Commission (NCC) at the end of first quarter of 2015 showed that out of the 143 million telecom subscriber base, MTN is leading by 61.21 million subscribers or 42.84 per cent.
Globacom comes second with 30.03 million subscribers or 21 per cent of the total while Airtel, with a subscriber base of 28.6 million or 20.4 per cent; and Etisalat, with 22.3 million or 15.69 per cent, followed in that order.
According to a report in Telecoms Tower, “The growth in subscribers was mainly driven by Globacom, which recorded an average rate of 1.45 per cent over the period, followed by Etisalat with 1.37 per cent and Airtel with 1.29 per cent, whilst MTN recorded 0.44 per cent.”
Airtel moves to reclaim lost grounds
Airtel which was hitherto in neck to neck level with MTN now appears to be in serious contention to reclaim its position as the second largest operator in Nigeria. In the last few months, Airtel has commenced aggressive marketing efforts to re-gain any lost grounds after beliefs by consumers that Airtel brand has come to stay.
The brand recently and publicly unveiled top notch personalities as brand ambassadors perhaps for the first time to further push the Airtel brand towards reclaiming its position.
Speaking at the event, Managing Director and Chief Executive Officer of Airtel Nigeria, Segun Ogunsanya, said: “We have carefully selected the ambassadors who embody the values, character and overall image inherent to the Airtel brand, therefore making them a perfect fit for further endearing Airtel to millions of Nigerians whilst strengthening the relationship we have with our customers.”
He added that the selection of the highly talented ambassadors was also meant to encourage the teeming youth population and inspire them towards realizing their dreams.
Also recently, Airtel engaged Yaya Toure, Africa’s best footballer of the year, as another brand ambassador. Toure who features in Airtel new campaign is employed as icon to nurture and grow talents while providing customers with access to connectivity and technological solutions that will enable them explore opportunities around them.
During this campaign, Airtel will give out one million naira daily for the next 60 days. Loyal subscribers will be rewarded with prizes and cash worth over 200 million naira to subscribers, a course designed to reward consumers, keep them on the network and attract additional subscribers.
Still in its moves to fastrack its trajectory, Airtel recently looked beyond size in its search for a creative advertising agency to handle its business. This is the time of business dynamism and the Airtel is looking for such dynamic agencies to steer the ship. The telecom firm found Noah’s Ark and CentreSpread capable of creating works that will leap frog the telecom giant back to its position.
A communication practitioner said the Airtel is not looking for a conventional agency. “They are looking for a dynamic agency that is willing to work with them, understand the consumer and communicate with them to bring brand affinity”
It is believed that the youth market is dynamic and big and most brands want to align with that segment and capture their share of it. According to him, the likely objective of the recent push in marketing communication strategies is for Airtel to reclaim its rightful position as a leading telco player in Nigeria. In this direction, the company also recently appointed CMC Connect as PR agency to rejuvenate its brand. The telco firm has also appointed MediaReach OMD as buying agency. All the agencies are expected to join hands with Airtel to realize its objectives.
He said the advertising creative pitch involving top rated agencies was an exercise that will go down in the industry as very fair, keenly contested pitch.
To challenge the top position, gain the big chunk of the market especially the youth segment, be on the lips of most consumers again and reclaim its place, Airtel which is a big global brand needs to keep the fire on. Though this requires deep pocket but it is the cost of encountering disruptions in operational process.