Over the past one week, communications firm Airtel has been running bare-knuckled advertisements that have been targeting leading telecommunications firm Safaricom. From Airtel’s perspective, the advertisements are aimed at portraying Safaricom’s weaknesses in a bid to lure customers to the Airtel network. Unfortunately, some of the advertisements have gone overboard in the manner they pass their message. From many corners, these ads are not only a portrayal of bitterness towards a more successful rival, but are also abusive and scandalous.
Incidentally, this is not the first time that Airtel is employing these kinds of below-the-belt advertisement tactics. In 2010, an advertisement dispute arose between Safaricom and Airtel. This was after Airtel adopted “the best option” slogan that Safaricom saw as shaving too close to its “better option” mantra. Over time, Airtel’s campaign has included jibes at Safaricom with a declaration that “Going green is not always the better option…” taking from Safaricom’s marketing slogan “the Better Option,” and its corporate green colour.
But according to Rachel Nandwa, a marketing consultant based in Nairobi, using jibes to market a product ends up emphasizing the competitor’s weaknesses rather than the strengths of your own products. “We are in a fairly reserved marketing culture, where such adverts don’t go beyond providing comic relief to netizens. The impact on the ground is not really felt. It would be better to rather speak more about your brand than focus on the competitor’s perceived weaknesses, which the active consumer might not relate with,” says Ms. Nandwa.
One of the main jibes that Airtel has been throwing towards Safaricom is its pricing and the usage of data bundles. But according to Patrick Koech, an IT analyst based in Nairobi, this assumption ignores other contributing factors such as network efficiency, availability, and type of usage. “There will certainly be a difference between downloading a document and a high definition movie. The consumption will also go high if you have not reset your smartphone’s settings to limit upgrading and downloading of data-intensive mobile applications. The data bundle will get used faster because it is more of a fire hydrant compared to a tap,” he says.
According to a statement from Safaricom, its pricing policy is informed by a duo strategy that enables its customers to continuously enjoy faster and more convenient products while keeping its foot on the growth peddle. “Our prices are largely informed by the need to continue investing in infrastructure and remain relevant to the consumer,” Bob Collymore, the Safaricom Chief Executive Officer says in a statement. This is echoed by Mr. Koech who says that there will be little to gain if you get loads of data but no network availability. “Data and availability of network coverage must support each other. On the ground though, the bitter truth is that Airtel has not invested in building up its infrastructure, which renders its claim of getting what you pay for null and void. In fact, outside the comic relief, this claim could end up in a boomerang,” he says.
In the same vein, investments in the upgrading of data coverage have been higher on the green corner than it has been on the red corner. For example, Safaricom was the first company to introduce 3G and 4G network in Kenya, which it continues to enhance. In the 2017 financial year, Safaricom built 450 additional 4G sites, 653 3G sites and 250 other sites. By the start of this year, Safaricom’s 4G network was available in all 47 counties. This meant that Safaricom’s multi-billion investment in the high speed network since its launch in December 2014 had seen the business achieve 1,400 4G sites, covering over a third of the country’s population. Around 224 of these sites used the enhanced 4G+ technology, allowing customers to achieve speeds in excess of 150 Megabits per second. Safaricom has also connected over 200,000 households to its home fibre network. Last week, Safaricom became the first company in the world to launch the 400G end to end network. “We continue to invest a significant portion of our capital expenditure (capex) to enhance the data capabilities in our network,” says Safaricom chief financial officer Sateesh Kamath.
Take the construction of base transceiver stations under the Universal Service Fund. While this fund seeks to bridge the broadband and mobile connectivity in the non-connected parts of Kenya, not all telcos have been willing to take part. For example, when the Communications Authority advertised for the construction of base transceivers, Safaricom placed a bid while Airtel did not. Subsequently, since bagging the tender, Safaricom has constructed over 37 stations out of the designated 48 base transceiver stations. Airtel has constructed none in the designated areas. “By opting for innovations and infrastructural investments such as base transceivers instead of TV jibes, Safaricom is setting itself apart in the customer attraction and retention,” says Ms. Nandwa.
