The principle of simplicity

Mobile Phone Market: With Yallo, TDC aims to establish a budget brand for pragmatic cell phone users alongside Sunrise.

Mobile phone market With Yallo, TDC wants to establish a low-cost brand for pragmatic cell phone users alongside Sunrise. A few weeks ago, mobile phone providers reacted to stagnating sales with new tariff models for their pre-paid and post-paid customers. TDC Switzerland - with a market share of 16 percent (Bakom, December 2003) the number three among mobile phone providers - did not react to the actionism with a budget offer for its Sunrise brand, but instead launched Yallo, a completely new prepaid brand for a specific market segment and customer group. When you consider that, according to IT analyst Gartner Dataquest, the market penetration of mobile telephones in Switzerland is expected to rise to 90 percent by the end of the year (May 2004: 84 percent) and that the proportion of prepaid customers is 40 percent, you can see that there is still great potential in this sector. The new brand also serves a different target group (over 25-year-olds) and has its very own business philosophy for them: that of slimmed-down mobile communications. Yallo is aimed at those cell phone users who simply make calls or send text messages, but who previously had to pay fees for the entire multifunctional package. This target group, which does not have much in the way of MMS, VGA camera or UMTS, can also be expanded to include those who are no longer able to find their way through the opaque jungle of tariff models or who do not want to commit themselves to a cell phone contract. What is a must-have for some is just an expensive gimmick for a growing group of others.
Reduced to the essentialsThese people who act critically are the focus of Yallo. The brand identity, which was developed by several agencies - including Assai, MetaDesign and Prime Communications - is also credible: straightforward, fresh and direct at all levels. Prime Communications is responsible for the classic advertising presence. "When everything is becoming more and more, we finally need less again," is how she sums up the core message. Like the strategy, all advertising materials are aimed at reducing complexity. The messages are reduced to the essentials and are advertised in print, posters, radio and online.
True to the monobrand strategy developed by HTP, St. Gallen, and MetaDesign, Zurich, Yallo is intended to stand for a completely new and not an additional offer. The strategists are certain that this will not affect Sunrise's good positioning with the "simple and affordable" Yallo brand. In addition to the primary features, Yallo stands out from the competition thanks to the standard rate for all calls to all external networks. Meta-Design translated the new business model into a clear and friendly design that is intended to appeal to modern users with a "soft spot for the Internet".
Straightforward message, simply packaged: Yallo campaign by Prime Communications and MetaDesign.
Luca Aloisi

More articles on the topic