Despite the telco’s local pole position, it was obvious to most that better advertising could take the brand even further. Virtually every non-conflicting multi-national has answered a request for information for the account, estimated to be worth up to S$30 million (US$20.5 million). At press time, 19-year incumbent Y&R pulled out of the race for the business.
“SingTel has always been seen as a reliable company and people have learned to expect a certain degree of quality from it,” says King-yew Foong, a Gartner research director and former SingTel employee. “But it stands for what a telco meant yesterday: voice and data transport. Telcos are reinventing themselves to move into the multimedia space, such as IPTV and mobile media. As this landscape changes, SingTel needs to figure out how to let its brand resonate more with new technology.”
Pitch leader Sherie Ng told Media she wants an agency that understands how to reach younger, non-loyal audiences. “We’re looking for an agency that can optimise a creative idea with innovation and new technology,” SingTel’s director of brand experience said.
This sort of thinking coincides with some of SingTel’s recent product offerings - noticeably more innovative than its marketing — such as mio, mobile payment services, mobile surveillance and IPTV.
But as margins erode, should SingTel keep trying to compete on price? “The key question SingTel should figure out is: is the market ready for a communications message that isn’t so price-centric?
“Perhaps it should communicate its capabilities in a more hip manner, and move away from being driven by discounts and freebies,” Foong says.
But beyond the local scene, Ng said SingTel has global ambitions as well. Which raised earlier questions of whether the Singapore team would better synch its branding strategies with its strong overseas subsidiaries: Optus in Australia, Bharti in India, Globe in the Philippines, Telkomsel in Indonesia and AIS in Thailand.
Fact Box
-September 2007: SingTel calls Singapore creative review, estimated at US$20 million.
-August 2007: Optus shortlists M&C Saatchi, Leo Burnett, Clemenger BBDO and McCann Worldgroup for $60 million advertising account.
-June 2006: SingTel shelves digital review, due to departure of brand marketer Mabel Tay.
Charles Wigley, chairman, BBH Asia-Pacific
Foreground brands exist, as their name implies, in the front of people’s consciousness. Because of this position, they are often able to enjoy disproportionate sucess with consumers relative to their category peers.
To achieve this status, they tend to take their marketing and communications very seriously. While not always spending the most, they create communications that create the greatest impact. That intentionally stand out from the crowd.
Examples of current foreground brands include Apple and Nike. Examples of past ones might be The Body Shop and Orange.
As you might have guessed, I do not believe that SingTel is currently a foreground brand. In fact, I’m hard pressed to remember its recent communications or feel anything very specific about the brand (either positive or negative ).
This, however, is not to say that SingTel couldn’t be a stellar foreground brand. I’m sure it has great products and services, many of which probably lead the market both at home and abroad.
The issue will be whether it has the confidence and drive to present them in a way that will bring the brand to the front of people’s minds rather than letting it languish somewhere at the back.
Joseph Baladi, chief executive officer, BrandAsian
That SingTel has decided to review its relationship with Y&R after a partnership of almost 20 years should not, in itself, surprise most.
But what does merit attention is the reason for it.
A revealing hint at what is contributing to the review is a quote from one SingTel’s officers: “We’re looking for an agency that can optimise a creative idea with innovation and new technology.”
I am going to take a leap here and suggest from the vantage point of an ordinary telco customer that - personally - I can’t remember the last time SingTel came out with anything outrageously new, different or (that word again) innovative. That this might have a knock-on effect on the creative product of its ad agency is, frankly, plausible.
If the issue is innovation, SingTel might possibly do well to look inwards first and assess whether it has the culture, processes and systems to ensure that this - its single most important strategic driver - is delivered constantly. Of the three, culture, the hardest for companies to get heads around, is the most important.
Should SingTel look for another agency after 20 years? Probably, if only to experience that metaphoric breath of fresh air.
