Business
Standard September 11, 2001
The Birla-Tata-AT&T-BPL
combine is planning to advance the launch of its common brand to this
year-end as the promotion of its existing brands — AT&T, Tata
Cellular, RPG Cellular and BPL Mobile — in their respective circles
are proving to be too expensive.
"We are planning to
unveil the common brand by the year-end. Earlier, we had planed to
introduce the brand early next fiscal. The preponement of the launch
may help us save some money as promotion of existing brands and
internal competition (between them) require a huge (funds)
outflow," a top Tata executive told Business Standard.
The combine, which has
already given the mandate to Lowe & Lintas to draw its brand
strategies, is in the final stages of developing the common brand. The
proposed brand will be distinct from the promoters’ existing brands.
At the time of announcing the
merger, the combine had said that the existing brands like BPL Mobile,
AT&T and Tata Cellular will be phased out after the launch of the
common brand. However, the Tata executive declined to name the common
brand.
The Birla-AT&T-Tata
union, in association with Lowe Lintas, has already shortlisted some
names. A merger panel comprising executives from Tatas, Birla, BPL and
AT&T is working on the comprehensive brand strategy, the executive
added.
The existing promoters of new
entity will be gaining significantly if the existing entities — Tata
Cellular, Birla-AT&T, RPG Cellcom and BPL Communications —
decide to discontinue with their individual promotions. Recently, BPL
has launched a new campaign in Kerala.
Interestingly, BPL still
competes with Birla-AT&T in the Maharashtra cellular circle to
retain its marketshare. As BPL Communications needs to hive off the
Maharashtra circle, the company is forced to push promotional
advertisements in order to attract more subscribers. This is because
the company requires a huge subscriber base for a good valuation.
According to analysts,
Hutchison Whampoa is also gearing up to launch
its national brand within few months. With this,
the cellular market is likely to see a new round
of brand wars.