Yes, it is possible for a Mobile Network Operator (MNO) to launch a commercially successful separate brand.
We have a great example from Asia, where we reached 400,000 subscribers in less than 18 months. The key was in targeting families. Mobile subscription is a family-related service, and so it should be sold. You truly solve your customer a headache of several challenges. We will explain how.
Sub branding in general
It is not a new idea for MNOs to launch new brands for different services. However, families for some reason have not been targeted before in our knowledge.
Subbranding can be a good idea for various reasons, including:
Targeting Different Customer Segments: MNOs may want to target specific customer segments with unique branding and marketing strategies. For example, they might create a budget-friendly brand to appeal to cost-conscious consumers and a premium brand for those seeking high-end services.
Diversifying Services: Launching a separate brand allows MNOs to offer a different range of services or products. For instance, they might have one brand focused on traditional voice and data services and another brand specializing in IoT (Internet of Things) connectivity or enterprise solutions.
Regional Expansion: MNOs can create separate brands to cater to specific regions or markets. This allows them to tailor their offerings and messaging to meet the needs and preferences of customers in those areas.
Competitive Advantage: By introducing a new brand, MNOs can differentiate themselves in a competitive market and gain an edge over rivals. This can help attract new customers and retain existing ones.
Rebranding or Refreshing: Sometimes, MNOs may choose to rebrand or refresh their image to stay relevant in the market. This can involve launching a new brand with a fresh identity and updated services.
Testing New Strategies: MNOs may use separate brands as a way to experiment with new business models, pricing structures, or technologies without affecting their existing customer base.
What do you as an MNO need to consider when launching a sub-brand for a specific customer segment?
Launching a separate brand to target a different customer segment is a strategic move that requires careful planning and execution. Here are the key steps you should consider when launching a separate brand:
Identify the specific customer segment you want to target with the new brand. Understand their needs, preferences, and pain points.
Analyze the competition in that segment to identify gaps and opportunities.
Develop a clear and unique brand identity for the new brand, including its name, logo, color scheme, and messaging.
Determine the brand's positioning in the market. What makes it different from your existing brand and competitors?
Define the brand's core values and mission, aligning them with the target customer segment's values and aspirations.
Tailor the products and services offered by the new brand to meet the specific needs and preferences of the target segment. This may involve offering different pricing plans, features, or bundles.
Ensure that the services are designed to solve the pain points identified during market research.
Evaluate your existing network infrastructure to determine if it can support the new brand's requirements. You may need to invest in additional infrastructure, especially if the target segment requires specialized services.
Marketing and Promotion:
Develop a comprehensive marketing strategy that includes advertising, digital marketing, social media campaigns, and PR efforts.
Tailor your marketing messages to resonate with the target audience. Highlight how your new brand addresses their specific needs and offers unique value.
Consider partnerships or collaborations that can help you reach the target segment more effectively.
Sales and Distribution:
Plan how you will distribute the new brand's products and services. This may involve opening new retail locations, partnering with third-party retailers, or focusing on online sales channels.
Monitoring and Feedback:
Continuously monitor the performance of the new brand and gather customer feedback. Use this information to make improvements and adjustments as needed.
Be prepared to adapt your strategy based on the evolving needs of the target segment and market conditions.
Define key performance indicators (KPIs) to measure the success of the new brand, such as customer acquisition rates, churn rates, and revenue growth.
Regularly assess the brand's performance against these KPIs and make data-driven decisions.
Launching a separate brand to target a different customer segment requires a well-thought-out strategy and ongoing commitment to meeting the unique needs of that segment. It's important to be flexible and willing to make adjustments as you learn more about your target customers and their preferences.
Is it a good idea to target families?
Targeting families with differentiated Mobile Network Operator (MNO) services can be a sound business strategy if executed effectively.
Families represent a sizable and potentially loyal customer segment, and catering to their specific needs can differentiate your MNO brand in the market.
Here are some reasons why targeting families with differentiated services can be a good idea:
Larger Customer Base: Families often have multiple members, each with their own mobile devices. This means more potential subscribers and higher average revenue per user (ARPU) compared to individual customers.
Loyalty and Retention: If you can provide services that cater to the diverse needs of family members (parents, children, grandparents), you're likely to build customer loyalty and reduce churn. Families may be less inclined to switch providers if they receive services that meet their unique requirements.
Bundling Opportunities: Families often seek bundled services, including multiple mobile lines, home internet, TV packages, and more. Offering attractive bundles can increase customer retention and revenue.
Shared Plans: Offering shared data plans can simplify billing for families and allow them to manage their data usage more efficiently.
Discounts and Promotions: You can create family-specific promotions, discounts, and loyalty programs that encourage multiple members of a household to subscribe to your services.
Content and Entertainment: Families often consume a significant amount of digital content and entertainment. You can provide streaming services, educational content, and family-friendly apps as part of your offerings.
Customer Support: Tailor your customer support to cater to the needs of families, including assistance with setting up parental controls, managing multiple lines, and addressing concerns related to children's device usage.
Customized Plans: Allow families to customize their plans based on their needs, such as the number of lines, data allowances, and device options.
Cross-Promotions: Collaborate with family-oriented brands and businesses (e.g., schools, child-focused organizations) for cross-promotions and partnerships to reach more families.
Remember that marketing and branding should also be family-friendly and relatable. Providing a seamless and user-friendly experience for families across all touchpoints, from marketing to customer support, will help differentiate your MNO. We can facilitate your Family subscription launch from the required technology to marketing assessment, please do not hesitate to contact us.
Technical Setup and Integration
We are able to integrate into any given carrier network infrastructure. Let's study your current setup and create an integration plan.
Our proposal to you!
At Emblacom we jointly developed and launched a subbrand targeting families in Vietnam. The success has been such that we have decided to expand into new countries.
In Vietnam, we worked together with an MNO called Mobifone. The sub-brand is called m-Family, and we only target families.
The idea is to provide a simple one-stop shop for mobile plans for entire families. One Plan, One App, entire Family included.
We have sold +400.000 subscriptions in 14 months, at the moment the growth is 10k new subscribers every week. This is the most successful launch we have seen in 15 years. Now we have the required technology and know-how, and we want to expand.
If this sounds interesting to you as a Telecom investor, MVNO, MVNE, or MNO, let's talk. We are in active search for growing into the new countries.
Taking Action - How to proceed?
We have already done a big part of the work for you, and the strategy is already validated with +400k happy subscribers. For Go-To-Market we need access to cellular infrastructure and a local partner. Planning and Building the launch will probably take something between 3 and 5 months depending on the priority the project has in your organization.