Loyalty Program Paradigm: The 'Unpaid' T24*

Abstract:

This case is about the launch of the T24 Mobile in June 2010 as India's first unpaid mobile. The result of a partnership between Tata Tele Services Limited and Future Group, T24 created a unique position in the Indian mobile industry. The case discusses the launch of T24, the unique marketing strategy to woo customers - the first such loyalty program in India. The case further discusses the bottlenecks that such a partnership could face along with throwing light on the hurdles T24 will have to face as a mobile operator.

Issues: » Customer loyalty » Loyalty program » Customer value proposition Introduction With the tagline "Forget Prepaid, Forget Postpaid, Get India's First Unpaid connection now", Talk 24 (T24) rolled out its services in June 2010. T24 was India's first 'unpaid' mobile service, the result of a strategic partnership between the retail giant Future Group and leading telecom player Tata Tele Services Limited (TTSL) (Refer to Exhibit I). Applauded for its uniqueness, T24 brought in the concept of the 'Retailer-Telco' partnership for the first time in India...

Questions for Discussion:

1. With telecom operators mushrooming in India, do you see T24 as a viable player?

2. In the long run, will T24 survive solely on the Free Talktime proposition? How far do you think the "unpaid" concept of T24 will lure customers?

3. How effective do you think such loyalty programs are?

Key words:
Customer loyalty, Loyalty program, sales promotion, customer value proposition, retail, telecom, T24, Unpaid mobile, free talktime, Tata Tele Services Limited, Future Group

* This caselet is intended for use only in class discussions.
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