While Bates David Enterprise chief executive Subhash Kamath declined to comment, it is believed that his agency is currently researching brand positioning strategies for the UK brand’s Indian launch, which will come via a 50:50 joint-venture with Tata TeleServices (TTSL).
Virgin is expected to roll out a youth-targeted brand, leaving TTSL’s Tata Indicom offering to focus on the mass market.
A source familiar with the situation pointed out that Virgin would need to adapt its irreverent brand image to prove successful among India’s youth. “It will be a balance of global Virgin values and Indian,” said the source.
“It’s one of the most exciting brands, and the youth are looking for something they can call their very own - but it must be presented in a manner that is acceptable to Indian youth - so you cannot cross certain lines, but within those, you can create a youth brand that is a lot of fun.”
TTSL’s total customer base, including subsidiaries, stands at 11.4 million subscribers. The deal mimics similar joint-ventures that Virgin operates in the US, Canada, Australia and the UK.
Virgin would become the third British telecom brand to enter India.
Vodafone recently acquired a majority stake in India’s fourth-largest mobile player - Hutchison Essar - while BT acquired local company i2i Enterprise.
See Opinion 1, page 18