The win will see Burnett and Arc take over brand strategy from incumbent shop Shanghai AdCorp, which did not contest the pitch.
The agencies have been charged with developing communications across the telco’s various business lines, which include fixed-line, mobile, broadband, IDD and B2B. “Because Shanghai is such a developed market, there is saturation in fixed-lines, erosion of revenue in IDD and stiff competition from mobile operators,” said Donald Chan, national MD, Leo Burnett and Arc China.
One of the key aspects of future strategies is believed to be mobile, as the telco looks to enhance its offer in the face of more dominant mobile players like China Mobile and China Unicom. Speculation is also mounting that the telco may be granted a 3G operating licence this year, a move which would boost Shanghai Telecom’s mobile portfolio.
Chan noted that one strategy from a product perspective would be to explore the option of bundling, which would mark the first time the telco has rolled products and services into a single offering.
“Just by marketing to consumers, it offers a complex and diverse range of products across B2B and B2C products,” he said. “It has a lot of products and a lot of messages, and it feels that now is the time to find an insightful activation of the brands.”
Service centres will also be a key point of focus for the communications campaign, with Shanghai Telecom keen to ensure consumers’ experience is improved.
Burnett will be responsible primarily for above-the-line brand strategy, with a specific focus on TV and OOH, while Arc will be focused more on events and retail branding and strategy.
The account will be led by group brand director Richard Lee, who has previously been working on Siemens and Vanke Property. Starcom, which supported Burnett and Arc in the pitch, will handle media planning and buying.
China Telecom emerged to handle the Southern regions, with China Netcom responsible for the Northern regions, when the original national telco was split in 2002, according to Chan.
Although it is seeking to enhance its mobile offering, the main players remain China Mobile and China Unicom.
