PREPAID

The Fatal Attraction

The youth hold the key to the mass market. However, to catch their eyes, we have to not only find space on retail shelves but have attractive packing too.

 

It is said that more than half of the purchases made are on impulse. True or not, in today’s families, youth play a key influence on the buying decisions. This necessitates the product or service to not only occupy retail shelves (department stores, music or appliances shops ...) but also have attractive packing to improve visibility and stand out.

 

 

Total Freedom

Cellular means freedom to subscribers who need to be free from purchase bureaucracy, credit checks ... key hurdles for youth and other segments of mass market. Fortunately, the technology of "pre-paid" has made not only this freedom possible but also to pack cellular service into retail boxes. We now truly have a Fast Moving Consumer Service (FMCS).

In India too, more than half of the new cellular

subscribers, at least in the metros, are believed

to be the pre-paid ones.

 

The "packing" (we avoid using the term "packaging" which has a bit different connotation in cellular) plays many roles:

 

 

 

Many Ways To Pack Freedom

Around the world many different techniques have been used by the cellular operators. The first, and probably the most successful one, is the oft-quoted example of TIM of Italy which packed its pre-paid like a CD. Launched in October 1996, TIM pre-paid cards had 1.5 million subscribers by May 1997 (one million rechargings in May). Which TIM hopes to increase to over six million by the year 2000, equivalent to 10 percent of Italy’s population: a true mass-market benchmark.

In France, the three operators used "Forfait" (advance lumpsum payments) packages aimed at the "youth" who contributed more than half of the new subscribers in recent months.

Most successful was France Telecom Mobile’s (Itineris) "OLA" package comprising one month advance airtime cost and a colourful Alcatel One Touch Easy handset in a beautiful pack.

In India too, almost half of the new subscribers, at least in the metros, are believed to be the pre-paid ones. Here too, the focus is shifting to the youth segment and the retail shelves. One of the recent entrants being Tata Cellular, which packaged a ready-to-start cellular-service-kit comprising a prepaid card with airtime worth Rs 500 and a phone into one box appropriately calling it "now" and launched it through shelves of over 50 retail outlets. Tata Cellular claims "now" to be the first of its kind in Asia.

 

Papa, Gift Me A Mobile

This Diwali or Christmas, your young one would not find it difficult to suggest the season’s gift. One has to get ready with Diwali or Christmas gift-packs, be it for family, friends or business associates, or even oneself. Like what MaxTouch says, "This festive season, gift a MaxTouch to someone special: Yourself."

Also quite apt are the BPL Mobile’s messages screaming from the Mumbai billboards for its pre-paid "insta-cards":

"Application ka lafda nahin".

"Bill ki khip-pit nahin". 

 

Niraj K. Gupta, from my cell, Voice & Data, November 1997.

For more about mass-marketing and prepaid, read the book: "The Business of Telecom" by the author.