Virgin Mobile prepares for SA debut
Advertising and marketing will start on June 23, the day before Virgin officially opens for business. The campaign is one of the most eagerly awaited of the year and will be a major test for two small agencies: in a fiercely competitive pitch late last year, morrisjones won the advertising account and Grid the design account.
Though Virgin won’t disclose its planned advertising budget, media planners say it’s likely to be just over half that of Cell C, which spends nearly R160m annually. Rival MTN is SA’s biggest advertiser, spending more than R350m. Vodacom spends about R250m.
Virgin Mobile has stated it wants to capture 10% of the SA cellphone market within five years. The advertising campaign will open with a one-minute cinema commercial described by Virgin marketers as "an epic brand builder" and a 45-second version for TV.
Though the company and agency are keeping the concept under wraps for now, Virgin Mobile SA boss Sajeed Sacranie says the campaign is intended to position the brand as "rebellious, entrepreneurial, with an element of gloss".
Virgin Mobile is seen in the UK and other markets as a youth brand. But Sacranie says that territory is already owned locally by Cell C, so Virgin will have to target an older, more affluent client base. Cinema and TV work will be supported by an eye-catching poster campaign developed by Grid.
Branson himself will be in SA for the launch and Virgin marketing head Tristo Abro says the flamboyant businessman is likely to indulge in one of the outrageous PR stunts for which he is notorious.
Abro says an important part of the marketing campaign will be to simplify the notion of cellphone packages and their costs. He says there is still too much confusion around price and that most companies use "smoke-and-mirror tricks" to confuse customers. What he won’t say is whether Virgin will undercut its established rivals, which could prompt a price war.
What is certain is that Vodacom, MTN and Cell C will respond to Virgin’s arrival with high-profile advertising campaigns of their own. Media buyers say TV viewers and print readers will be hit by a "deluge" of cellphone advertising in the next few weeks. Vodacom has already started with the latest of its long-running Yebo Gogo series.
Six advertising agencies pitched for the Virgin business. They were Lunch (part of the King James group), Joe Public, Jupiter Drawing Room Cape Town, morrisjones, Ogilvy Johannesburg and Lobedu Leo Burnett. Joe Public subsequently withdrew because its parent, FCB, has the Vodacom contract.
Though the advertising will be fascinating to watch, consumers are probably more interested to see whether a much-vaunted price war will erupt as Virgin hits the market. Virgin is treading lightly around that issue, saying only that it will introduce per-second billing for all its cellular packages and will not tie clients into fixed-term contracts.
Though the advertising is likely to be fresh, the distribution model might prove even more interesting. The product will be sold at Virgin Active gyms and branded counters at Woolworths, Musica and CD Wherehouse stores. Virgin Mobile also plans to open 10 "concept stores" where, Sacranie says, consumers can engage with "the Virgin experience and where the brand’s entire capability can be showcased". The Johannesburg flagship store will be in Sandton City.
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