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Airtel Rebranding – Why on earth?

3 December 2010 22 Comments

Statutory Warning – This highly opinionated article you are reading is from a man deeply hurt by the recent exercise undertaken by Airtel. To me Airtel is about everything that is great about Indian marketing. It is about us getting it right, making all the right noises and building a brand over the period of 15 years brick-by-brick. As a student of strategy, finance and brands what has been done to it in the name of rebranding as I see it is nothing short of blasphemy towards an iconic and “youthful” Indian brand. Reader discretion is strongly advised. :D

I was flooded by thoughts when I sat to write this. So much that I ended up spending more time organizing this article so that it makes some sense than the time I needed to write it. :D

 

Why I am writing this? At the end of this article I intend to leave you with a few questions. Let us not leave this exercise as a case of The Emperor’s New Clothes – something everyone sees, no one understands but everyone just ends up praising because they think speaking up against it would make you sound like a fool. Indeed all I have heard from my friends in the past few weeks is – I think the reasoning behind the exercise is sound and their attempts make sense. Two hoots!! :P

What did they do?Airtel has a new logo. It has a new positioning statement – Dil jo chahe pass laye and what’s more it even has a new jingle which is of course made by tweaking the old one and making it more techno. And let me say something – the old jingle was miles ahead. Melodic and pleasing.

Old Airtel Logo

Old Airtel Logo

Why did they do it? Well in the course of expanding internationally Airtel has acquired a whole lot of companies like Zain in Africa and Warid in Bangladesh. Now as these entities transition to the brand Airtel the company is trying to gain an international image – a “new, modern, more friendly and accessible” image in the minds of all the users in these various countries.

Other elements in the logo

The lowercase is to signify humility. Red colour is for heritage, energy and passion. The font wants to showcase a dynamic force of “unparalleled energy”.

Airtel New Logo

Airtel New Logo

Let’s ask a few questions shall we?

1)      Why the new logo? - Why did they have to go for a new logo? Was the old one not working? Why could they not do what Vodafone did in India? Vodafone came in and overhauled Hutch. And mind you they were entering a huge market which is still pretty allergic to foreign companies. But they felt pretty comfortable in their skin. After all – if it ain’t broke, don’t fix it!!

2)      Logo looks similar?Isn’t the new logo very similar to Vodafone? As in it does not stand out generally does it? Even the colour and the background makes it eerily similar.

3)      What’s with the foreign connection? Why do the commercials feature foreign models and why are all of them shot in foreign locales? Even a lot of the posters have people not from India in them. It is a global brand. Very good. But when you finally come to my door – I just like to get connected to someone who is like me. Also, this usage of stuff which is foreign is a transition for Airtel. I don’t remember them doing it before very often (of course there was the beautiful football ad). The new ads have no element of “Ah!! That must be an Airtel ad!!” Somehow an ad shot on Indian roads with Indian cabs and Indian people around could have been done!!

4)      Lowercase for humility? What?? Ok such things do operate at a subliminal level. You may not know about it but feelings may be triggered in you. But it surely should have occurred to Airtel that most people in the 3 places – India, Bangladesh, Africa can’t even read English. All they look for is a similar symbol. And the old one would have worked as well. Do you really think there would someone in interior Karnataka in India or on the outskirts of Chittagong or in some small village in Africa who would go for a mobile phone connection, look at the Airtel symbol and think – “Hmm!! Now there’s a brand with humility if there was ever one!! I think I should buy it!!” Are you kidding me??

5)      Don’t you have anything new to say? Dil jo chahe paas laye!! The ads are all about staying connected with your loved ones when you want to and wherever you want to. Hmm now who else claims that – Vodafone maybe (in India it is associated with Hutch which said “Wherever you go our network follows!!”), Tata DoCoMo is all about friends, Idea Cellular shows a group of friends breaking language barriers (at least they said it differently huh??). Was there nothing else Airtel could tell us? Look at Uninor – it talks about Uninor users being themselves. Surely there could have been something else they could promise like superior customer service – a common complaint from cell phone users in India.

Just throwing ideas Just think of the opportunities that were not capitalized on here. This is the story of an Indian brand going out to the world. Look at this ad –

What was wrong with just building on this? One thing is in India this would have worked like magic but outside it may lead to Airtel’s rise being seen as an Indian onslaught – trouble especially with our neighbor Bangladesh having the feeling India dominates the region too much. But again think about this – here are countries which have had close relations with India historically. Could not have something been weaved around the lines of as India grows, we invite you our friends to join us, make our bonds stronger and together build a beautiful world?? Done in a youthful way, with young people across the borders – and who knows…..in today’s World 2.0 this may just be the kind of thing people are looking for.

Finally, this may end up being one of the best marketing and rebranding exercises the world has ever seen. This campaign may also herald a new future for Airtel and prove me completely wrong. I however still stand by my opinion as I hold it today. For me it just does not work. What about you??

As always ayes and brickbats are welcome. Just write in to themarketers.iimc@gmail.com.

Harish(Harish Seshadri Sarma is a PGDM (2011) student at IIM Calcutta. Apart from having utopian thoughts and cracking jokes which can make anyone sick, Harish kills his time reading about whatever he can lay his hands on and thinking about varied topics like strategy, marketing, finance, HR and how these different disciplines interact. Write to him at harishs2011@email.iimcal.ac.in).

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  • Pawan Kumar

    This discussion has been real treat and i would like to add few points as i have worked with airtel and i will tell you few things that none of you would be aware of
    1. Airtel launched new logo just when mobile number portabilty was about to be launched so to cater that it was just a strategy to inject some freshness.
    2. New ringtone has been superhit among youth especially . It was found that just because of this new concept Airtel saw increase of 15% customers in hello tune segment and also it was something funky you can say that is modern india . (we all know india is youngest country in world so you can’t ignore them atleast.
    3. Also new logo was face of new 3G services that were about to be introduced so with new boom came new logo .
    4.And of course Airtel going international was also one of the stimulus.

  • Karan

    Since the introduction of Zoozoo’s by Vodafone, Airtel has been a little behind in creating an impact with its advertising campaings.
    The new logo and the expenses to create it, may or may not be justified.IMO Airtel wanted to recreate the magic and remind people that airtel is there and also create and international brand image to rebrand Zain and Warid.It may not have been that successful but lets see.
    As far as the new tone is concerned, the numbers have been quite good in the number of downloads.

  • kinshuk kalia

    first of all i would like to congratulate for such a well written article on the rebranding exercise that airtel has undertake in the recent past…

    as im writing this..im still in dilema that am i in favor of the rebranding strategy or i am nt satisfied with their attitude for rebranding…

    (1) it is considered that bharti airtel is in its maturity stage…have reigned the thorne for the last 10-12 years in India with a huge success…but the new entrant are coming in & posing a threat to the brand image…& the most of the service providers that are threatening the position of airtel in the market are themselves the foreign players…so in this context..airtel’s rebranding strategy is acceptable & i must say i favor it in this regard…

    (2)the company wants to have a global outreach…& if we see that many MNCs have a logo symbolising their name..n with airtel it was a logo with just a name in font…n nthng else…but now they have gone for rebranding through creating logo…spent a huge mind boggling Rs. 300 crores on the rebranding strategy…n whatever message they wanna convey is still unclear…what was the need of doing all this when they have such a strong brand equity in Indian market…& it is just because of their strong foothold in the Indian market that they have been able to gain international presence & acceptability…so they are tryin to experiment with the mindset of their original consumers…moreover the logo that they went for doesnt show a distict image…whenever we see it..it gives a sense that it is nt unique..which kills the curiosity there n then…so it may be difficult in terms of getting increasing base because of this..

    (3) airtel have tried to connect itself with the Indian essence & inspite of launching themselves to the global scale with an indian perspective they have tried to bring the international essence to the Indian minds…this may backfire to their strategy as we have seen with many companies that they failed because they somehow ignored the Indian connection..

    (4) there has been a misconception in the mind of the people about changing of the logo..they feel that the company has gone for the new logo to introduce their 3G service in India or they have tried to inform consumers that they are changing to better in terms of quality & service…so instead of spending Rs. 300 crore plus on rebranding campaign they would have invested that same amount in improving ther infrastructure…

    so it is really difficult to predict as of now that the in which way the wind is going to blow…

    your comments are awaited..

    thanks & regards.

    kishuk kalia.
    LMTSOM
    thapar university, patiala.

  • rahul is duped

    Sadly,this whole rebranding effort has turned out to be a bad advertisement for Airtel.Why would a no.1 company mess up things so bad? Their entire exercise has been downright amateurish and makes absolutely no sense !!!!! And, as for their logo name,i guess the best ever description is ‘April Fool’… They just dont wanna announce the ‘namegame’ results…I’ve been duped :(

    By the way,amazing discussion thread huh.Some great thoughts interlaced with teasing and cheeky humour…Enjoyed it !!!!

  • harish

    @Priyanko – Thanks a lot for bringing new dimensions to this. Let’s try and get a little bit more under the skin of these –

    1)New CEO – Agency conflict? Need more knowledge to take a call. A recent Business Standard article talks about how managers get a lot of autonomy in Airtel. But it mentioned how sacrosanct the brand is and that anything on that needs to be vetted by Sunil Mittal himself. So this seems to be a plan which had its share of brainstorming. Not sure if they gauged everything correctly though!!

    2)This is a very interesting aspect you bring here. Though there needs to be more analysis to this I would guess people go by a feel more than a look of any logo. And the red, black and combination stood out pretty well I guess. So, was it a smarter thing to try and drive in the existing imagery or go for a new logo? The jury is still out on this one but I would like to put my neck out and say maybe on a return on marketing investment basis, spending on the existing image would have worked better.

    Any thoughts?

  • Priyanko Basu

    Just a couple of quick observations / questions / thoughts –

    a) Airtel got a new CEO this year…making himself useful around the office, probably.

    b) Read somewhere recently about the inroads vodafone, videocon and uninor were making in the smaller towns and rural india. was airtel’s font based english language logo making them lose market share, since it wasnt as recognisable as an image based logo? something to think about.

    Harish, totally understand your anguish. well written!

  • harish

    Piyush and Anandan,
    Thank you so much for sharing your views. It is discussions like this that make it special. Also, good to know more people think that way.

    Just as an aside – Business Standard had a cover story on The Strategist last Monday. It seemed like a bit of PR (especially in parts where there was mention about how much freedom is given to managers in Airtel), but on the whole it spoke about how confident the Airtel team is that they have been able to pull of a major strategic coup here. The reasons given varied from -
    1)They needed an uplift especially with 3G coming in – so being the 1st mover is always better
    2)Also it is better to make such a move early than be too late
    3)Again the connect with the youth was a big reason stated
    There was also mention about how the web community is divided on the verdict – most thing it is cool but there are some naysayers.

    The good part was however (and you have to to give this to Airtel), the coordinated and swift manner in which the whole exercise was conducted. Some of the stuff was changed overnight and much of the moves were done seamlessly sometime in advance.

    The next 3-4 months are going to be crucial. Let’s see how things move from here.

  • http://piyush-j12.blogspot.com Piyush Jain

    First of all, I’d like to congratulate u for the well-written article which is evident from the no. of responses..much has been said above so not to repeat, i’d quickly add my couple of points:

    1. according to me the most important brand ownables of Airtel were its jingle and logo – both very high on recall which it let go in a hysteria to just change EVERYTHING as a part of its rebranding exercise

    2. Airtel was one of the very few Indian brands going global in a big way. When company went for the Indian-Bharti ad campaign pasted above, it made an emotional connect with its largest customer base – Indians..but in order to woo foreign lands, if they’ll show adverts with foreign faces in unknown locations – to me, its a case of a penny wise and a pound foolish!

    Piyush Jain
    MDI Gurgaon

  • http://@anandan22 Anandan

    Hi Harish,

    I enjoyed reading your post. Very comprehensively and well-written post. I completely agree with your thoughts.
    Many Indian companies have taken the route of rebranding in the last couple of years and the common reason for all of them has been to achieve better connect with the younger generation of customers (Ceat, Godrej, Shoppers Stop, Apollo tyres, Canara bank, etc.) When they enter the rebranding exercise they predict to earn crores of rupees. However, so far atleast I haven’t come across any company which has come out and said in open “Yes, we gained because of our rebranding exercise”…

    I completely agree with you that almost everyone in the telecom sector has a common positioning, instead of focusing on the service delivery, which is the key aspect of industry and wherein almost everyone falters.

    Anandan
    FPM (Marketing)
    MDI, Gurgaon

  • NAVITA ARORA

    Harish I totally agree….

    I really loved the logo & the jingle…. Though change is always required… but a positive change…. They should have worked on new strategies to advertise rather than messing up everthing.. Even if jingle was to be changed ; logo should have given some positive vibes…

  • harish

    @Rishab – Point taken. More time needs to pass before we take a final call on this one. And as mentioned by you earlier, even if this does not get them as good a result, people are not going to forget this in a hurry especially given the time, energy and sheer real estate space that has been spent. This is just a preliminary analysis of things as they stand now and as I see it based on a theoretical marketing viewpoint. How they build on this or maybe take it from here is where the real fun lies. But yes, good to have people like you and others on board to discuss and debate our point of view and our analysis of where things are headed. :)

  • Rishab Shankar

    @harish…
    1)Is the money well spent? Well, i would like to tread carefully on this(allow me to be diplomatic a wee bit..!!). I would like to stress again that the success of this campaign entirely depends majorly on the value addition. I agree with your point that spending on value creation is always a better option. So, let us give airtel some time, say, 6-7 months. The real test will be when it goes global and competes with other brands.
    2)Have they done good or bad for their cause? If i consider “global edge” being the driving force behind this campaign, i would reckon this is going to play a major role. Their is no doubt that airtel is thinking global. I believe airtel is smart enough to realise that India is as tough a market as europe and others. I think that airtel is shooting mutiple targets by this rebranding exercise, considering India as one of the target! What i mean to say is that airtel is not complacent about India. I guess this strategy is going to work well.
    One more thing, we must not forget that these are testing times for airtel. It will be judged on international parameters soon. In this case, the point of view of international customers are of huge value and it can vary. So, the same logo which we detest might become a huge hit amongst them! Let us give airtel some space to breathe!

  • harish

    @Kunal – First of all that mention was not of you. Infact I don’t remember us discussing it. And just so that you know, some of the discussion was with my colleagues here in The Marketers. Anyway, let us again start at the beginning.
    ‘If it ain’t broke why fix it?’ – is one of the the schools of thought in branding or strategy and as you may say it maybe too late if you start feeling the strain – but the question here is was Airtel feeling any strain as a brand?
    I am shocked to hear that someone in his or her mind was starting to club Airtel with BSNL/ MTNL. But I may agree to the fact that maybe Airtel is not as visible as Idea in Mumbai. But then again – let us concentrate here on visibility and not rebranding then – that is something uncalled for.
    Again if it is poor quality of service then make a promise there – do a campaign on it, spend money on that.
    Everyone has spent on 3G and everyone is doing a coming soon ad – you can do one too. As for the “globalization” – I personally do not see any need for a new look/ feel/ tagline.
    Creating a mythology around Airtel – not sure about that!!
    All in all much of what you say can ALSO be done without a “REBRANDing”!!

  • Kunal

    “I have heard from my ‘friends’ in the past few weeks is – I think the reasoning behind the exercise is sound and their attempts make sense.”

    first of all thanks for the mention harish..
    this rebranding strategy of Airtel has made many of us put our thinking caps on and carry out long discussions on the dinner table in the mess !!

    agree ‘If it ain’t broke why fix it?’ but what if you start feeling the strain and if its broken its too late to fix it…

    I think the guiding thought behind this exercise was that Airtel realized it was loosing out on the visual marketing space (as Rishab mentioned above) among the young consumers..was becoming like a quasi-govt telecom service provider, personally I would club Airtel with BSNL/MTNL (in my perceptual brand space :P ) given its deteriorating network services (especially in Mumbai circle) and had stopped noticing ‘brand’ AIRTEL in contrast to its more aggressive (again my perception !!) telecom competitors

    Now with the soon to be launched 3G services, bought after spending millions of dollars, and globalization of the company, with overseas aquisitions, this REBRANDing exercise is ‘justified’ (:P) but the matter of debate is the manner in which its being done, with an ordinary logo and a new jingle.

    Change for the sake of it !! or with a new mission to create a mythology around the brand AIRTEL, that it is, is probably a more pertinent questions here

  • harish

    @Netika – Thank you!! Always good to hear from you and the fact that you agree here is just like the icing on the cake. :P By the way instead of just saving the shrugs for so long you could have dropped us a line that you would like to read something on the Airtel thing. We could have done this much earlier that way! :D
    To some serious stuff now – disagree with the new rural start argument. How many times would rural (or urban for that matter) folks go for something entirely new? The only reason people go for a certain connection in India is cost effectiveness, availability and service quality (maybe in that very order even). So I can’t see how a new logo is going to help Airtel penetrate rural!!

  • harish

    @Rishab – Thank you so much for writing in. At last someone who disagrees with me – this is just what I hoped for!! :)
    Let me start by saying firstly that the assumption that the office-goer or students would like the zing added to the jingle is maybe not entirely true. Youngsters like melodious music as much and it is not about adding some techno to a song being good or bad – it’s just that a bad job has been done of it!! But let us assume what you say is the case.
    The campaign being the talk of the town I would say is a factor of something else. Consider this – as Netika mentions below – the amount of money spent on the campaign is mind-boggling. Airtel has gone out and painted complete trains (Delhi-Bangalore Rajdhani) and even the interiors have posters/ painted carpets/ painted seats etc. When you pour that kind of money and very literally paint the town red, you are bound to create ripples. For 2 days Times of India homepage and Yahoo were overtaken. I see full roads in Kolkata where every lamppost has an Airtel poster. If one has the muscle, you can make noise. The question to be asked is – Is the money well spent? Is whatever they did in line with what they have been doing all along? Have they done good or bad to their cause by the exercise? And personally at least I find negative answers to most of those questions. What do you think?

  • Netika

    Oh god!! How I was waiting for The marketers to come up with this.:P
    So much to say.. FRUSTRATION and MOCKERY *shrugs*

    1. The spent 300 crore on this logo which basically looks like an inverted Videocon logo with contribution form Vodafone and Uninor, and it’s so apparent, like so easily noticeable that one doesn’t even have to strain memory.

    Since 1950 to now, Pepsi has kept the same logo.. a few changes here and there but pretty much the same, and imagine it changing the logo.. It’s the LOGO for god’s sake!!And it’s not even a merger where it’s okay to change the logo.

    2. The jingle is ATROCIOUS(personally speaking). I have never been able to fathom why companies almost condemn the countries they’ve established strong base in. Marketing sure has to be seeing the target in mind, country, region, culture et al, but your jingle is something people will immediately associate you with(with Airtel I mean), and Indians don’t associate with this one (going by what I gather)

    3. The only advantage here , may be, that the rural markets can be tapped better. Airtel isn’t as penetrated into the rural markets,so a new logo may mean a fresh start, people associating with it from the beginning.

    4. Naming the logo, specially throw crowd sourcing, good idea. Involving people may just help.

    5. The whole ‘the new logo and tune will be easily relateable by the youth in Asian, African countries’.. TRASH!!!

    All in all, Potential Loss in brand equity that has been built after lots of hard work and significant financial investment over the years.

    PS: Please excuse the not-very-appropriate langauge :)

  • Rishab Shankar

    @harish…allow me to agree and and disagree at the same. i believe that the viability of the campaign will be decided by different aspects and different people. allow me to point out a few.
    1] women and old sitting at home: Being well acquainted with the classic airtel jingle, this section might feel left out a bit. The international zing added to the jingle alienates itself from that homely feeling it had once. Just in vicinity to the case of Rahman’s CWG anthem where the maestro faced the backlash of viewers as well as the music industry.
    2]young college & office goers: These are the sections which respond to change very quickly. Airtel’s new exercise is already the talk of the town. The company knows that in order to grow they have to keep the “growing” generation in its pocket. In this respect, half the battle is won for airtel provided it differentiates itself from others by providing value to this campaign!!
    As far as the logo is concerned, i guess what airtel is looking is to ignite the thought process. Personally, i am not pleased with the logo too. The “airtel” looks pretty ordinary and the logo made me think,” i have seen this somewhere!!”. But, atleast we are talking about it. i am utter confused with the purpose of this brand restructuring. My maths does’nt let me think that airtel is loosing too much on the customer base front. If it is for creating an international image, it makes some sense. But, i believe that the whole exercise is due to the dent vodafone and docomo made in airtel’s visual marketing base. We must not forget the fact that wherever airtel goes, it will always serve a mammoth clientbase of young people. So, instead of alientaing itself from the home feel, they must add youthfulness to the brand..!!

  • harish

    @Sam/ Abhinav – Thanks for writing in. Good to know more people think that way. Would be really interesting to see what happens from here onwards and what is the final verdict on this campaign (if there is something like a final verdict in branding and marketing that is)!!

  • abhinav

    Airtel logo:i guess drs little creativity in it take videocons logo now tilt it to some 120 degree color it red and here comes the NEW LOGO of Airtel,,,,they r goin global great but i don know wats the use of all this rebranding yes of course they needed to change certain things but definately not LOGO/JINGLE…………..A very personal opinion i differ wit airtel here

  • Prashanth Samuel

    And i’m not even gonna speak about what they’ve done with the jingle… terrible!!!

  • Prashanth Samuel

    I agree… Firstly, the whole rebranding things was totally uncalled for and what makes it worse is how badly they’ve executed it. They just dont realize that their brand identity will get messed up. Especially the logo; i cant see originality or imagination there and makes it obvious they’re trying to ape someone else. Wonder which consultant made millions out of this.