Brand Audit Report of Telkomsel Loop

Table of Contents

CHAPTER 1 : Introduction

1.1.Company Profile : Telkomsel

1.2.Brand Profile : Telkomsel Loop

CHAPTER 2 : Brand Inventory Report

2.1.Brand ArchitecturBrand Vision and Mission

2.2.Target Market
2.3.Brand Positioning
2.4.Brand Image and Performance Promise
2.5.Brand Elements
2.6.Brand Communication
2.7.Brand Communication Channel
CHAPTER 3 : Brand Inventory Vertical Integration Analysis

CHAPTER 4 : Brand Exploratory Report

4.1.Competitor Analysis
4.1.1. Indosat Ooredoo
4.1.2. XL Axiata
4.1.3. Competitor Matrix Analysis
4.2.Extended Strategic Brand Mapping
4.3.Customer Brand Journey
CHAPTER 5 : Brand Exploratory Internal-External Integration Analysis

CHAPTER 6 : Conclusion

CHAPTER 1
 INTRODUCTION

1.1.Company Profile : Telkomsel

Telkomsel is a brand name of a GSM and UMTS Mobile phone network operator which
operates in Indonesia. It was founded in 1995, and is a subsidiary of Telkom Indonesia. The
company currently has 122 million subscribers. Telkomsel Operates in Indonesia with GSM
900–1800 MHz, 3G network, and internationally, through 323 international roaming partners
in 170 countries (end of September 2008). The company provides its subscribers with the
choice between three prepaid cards-simPATI, Loop and Kartu As, or the post-paid kartuHalo
service, as well as a variety of value-added services and programs.

The company was incorporated in 1995 and is based in Jakarta, Indonesia. PT

Telekomunikasi Selular is a majority owned subsidiary of PT Telekomunikasi Indonesia Tbk.
having 65 percent ownership interest with the minority 35 percent ownership interest vested
by Singapore Telecommunications Limited. Telkomsel's operations in Indonesia have grown
substantially since the commercial launch of its post-paid services on 26 May 1995. In
November 1997, Telkomsel became the first cellular telecommunications operator in Asia to
introduce rechargeable GSM pre-paid services. In September 2006, Telkomsel became the
first operator in Indonesia to launch 3G services.

On 20 March 2009, Telkomsel and Apple Inc. South Asia Pte. Ltd. launched the iPhone 3G
in Indonesia with customised price plans for all of Telkomsel's customers. On 30 April 2011,
Telkomsel set a new record as Indonesia's largest cellular operator by number of subscribers,
with more than 100 million people out of Indonesia's population of 245 million. In addition,
it has worked with operators in neighbouring countries to offer the co-branded simPATI
Kangen product for Indonesians in those countries.

On 2016, Telkomsel has more than 100,000 Base Transceiver Stations (BTS) that reach 97%
of the Indonesian population. As the 7th world’s largest cellular operator, Telkomsel is the
market leader in Indonesia's telecommunication industry and serves more than 122 million
 subscribers. As a pioneer in the development of Indonesia mobile telecommunication
industry to enter the latest era of mobile broadband services, Telkomsel has been consistently
implementing the roadmap technology of 3G, HSDPA, HSPA+, and has successfully tested
Long Term evolution (LTE) technology. To serve customers, Telkomsel is supported by
more than 430 service centres and 24 hours contact centre throughout Indonesia.

1.2.Brand Profile : Telkomsel Loop

Telkomsel launched three brand of telecommunication packages: KartuHalo, Simpati (further
divided into Simpati and Simpati Loop), and KartuAs. KArtuHalo was the first product
Telkomsel launched, offering post-paid telecommunication services. In 1997, Telkomsel
launched the first pre-paid telecommunication service in Indonesia under the name of
Simpati. On the next years, Telkomsel divided their target market to Business User and
Casual User, with Kartu Halo targeting the business user market and Simpati for the casual
user market. On 2013, Telkomsel further divided their casual market to youth user and
regular user, with Loop targeting the youth and Simpati kept their positioning toward regular
user.

Each of Telkomsel’s Brand have their own positioning: KartuHalo focused on offering post-
paid telecommunication service; KartuHalo focused on offering pre-paid traditional
telecommunication package such as SMS and phone calls; Simpati focused on offering pre-
paid data communication services, and Loop focused on offering pre-paid data
communication services for younger generation, augmented with various entertainment
package dubbed as Youth Max.

In 2016, Telkomsel Loop had reached 20 million users. This number shows that Telkomsel
Loop had reached 10% of Indonesian customer of 200 million people. With youth target
market (15 – 25 years old) of smartphone user Indonesian numbered at approximately 80
milliion people, Telkomsel Loop had reached a 25% market share of Indonesian youth
market. Telkomsel Loop offered various data connection package, as shown in the table 1.1

Table 1.1 : Telkomsel Loop Package Offering

Data Package Package Information Price Price per GB Averaged Price per GB

8 GB data + 1 GB
Internet 9 GB 90000 10000
YouthMax

4 GB data + 1 GB
Internet 5 GB 70000 14000
YouthMax

2 GB data + 4 GB
Combo 6 GB 63000 10500 10900
YouthMax

2 GB data + 1 GB
Internet 3 GB 30000 10000
YouthMax

1 GB data + 2 GB
Combo 3 GB 30000 10000
YouthMax
 CHAPTER 2
BRAND INVENTORY

2.1.Brand Architecture
- Corporate Brand : PT. Telekomunikasi Indonesia, Tbk.
- Family Brand : Telkomsel, Telin, Infomedia Nusantara, Multimedia Nusantara,
Telkom Property, PINS Indonesia, Daya Mitratel, Telkom Akses, Napsindo
- Product Brand (under Telkomsel): KartuHalo, Simpati, KartuAs, Loop
- Brand Modifier (under Loop) : Loop Data Package, Loop Combo, Loop Voice
Package

2.2.Brand Vision and Mission

Brand Vision: To Be the King of Digital in the Region
Brand Mission:
- “To be the King…” : Offered the high end, premium service
- “…of Digital…” : Leading digital innovation
- “…in the Region” : focused on Indonesian and South East Asian customer

2.3.Target Market
Currently, Telkomsel Loop focused on targeting Indonesian Young Adult, aged 15 to 25,
smartphone users, technologically savvy, active in digital lifestyle, and in needs of
constant connectivity. This target market treat data connectivity as one of their primary
needs, and are willing to pay a premium price for connection in secluded area.
Behaviorally, this market travels frequently, either it is to urban or rural area, and have a
constant drive to show-off their activities in social media. This market also demands a
continuous access to entertainments such as music, video, and games.

2.4.Brand Positioning
 In order to appeal to such target market, Telkomsel Loop offered high-end, premium data
connectivity package that allows their user to continuously access the internet even in
secluded area. Telkomsel Loop also offered various other additional packages such as
Loop Cash to ease their transactions wherever they are; and YouthMax package to allow
them additional access toward entertainments such as videos and music.

2.5.Brand Image and Performance Promise

Telkomsel Loop shows the image of active, young people, with high social activity. They
are shown with a “you-can-do-it” attitude, are never bored, fun, bold, and projected as an
influencer in their social group. Telkomsel Loop promised constant streaming of fun
contents, high-speed and highly available connectivity, with stable connection
everywhere in Indonesia.

2.6.Brand Elements
2.6.1. Logo

Figure 2.1. Telkomsel Loop Logo

Telkomsel Loop logo shows a graffiti-designed typography of the brand name. No

“Telkomsel” word appeared on Loop logo to avoid association with expensive,
old-fashioned means of communication that Telkomsel provides. Red color is
used to visually associate Loop with other Telkomsel brand which is primarily
using red colors. The logo is levitated upward, showing an increasing, higher
 spirit in every step. The logo is designed in a 3d visual, popping out with red
matte color, showing their intention to pop out of two-dimensional limitation, to
break through the boundary.
2.6.2. Tagline
Loop tagline of “Ini Kita” (This is us) shows a high social connectivity between
users. “Ini Kita” create a nuance that Loop users are not individualistic, and
shares their information with their peer group. The tagline also shows that the
brand is not available for personal customization, but rather toward group
customization to ensure better relationship between users.

2.6.3. Packaging

Figure 2.2. Telkomsel Loop Packaging

Telkomsel Loop Packaging uses vibrant color to attract youth attention. Loop
logo became the main focus of the packaging, with no tagline used. Telkomsel
claimed that they did not put the tagline in the packaging because of the
fluctuative nature of their target market. Telkomsel wanted their tagline to be
highly adaptable toward their target market, and are not willing to re-print their
packaging if some urgent changes needed to be made.

2.7.Brand Communication
Telkomsel Loop latest brand communication is #HypBarengLoop. The communication is
meant to create a community-based awareness of the brand, and uses several means of
communication to do so. The words “Hyp” is used to shows the “hype” and trendy image
of Telkomsel Loop toward youth market, and is used to appeal the “Hip” community that
are currently become a sub-culture in Indonesian youth market (refer to Hp=Hop and
Hipster community for more detailed information of said sub-culture).

#HypBarengLoop campaign is a series of event in 12 big cities in Indonesia, with every

city opened their “Loop Arena” which facilitates youth activities, such as skateboard
parks, sport arena, music stages, and hang-out points.

Figure 2.3. #HypBarengLoop Advertising

Figure 2.4. #HypBarengLoop Event
2.8.Brand Communication Channel

Figure 2.5. Telkomsel Loop Social Media Channel

 CHAPTER 3
BRAND INVENTORY VERTICAL INTEGRATION ANALYSIS

Telkomsel Loop appeared to have several gaps in their brand inventory. For the most part,
Telkomsel Loop have already conduct a good job on their branding activities. Their vision and
mission are aligned, their positioning matches their target market well, their brand elements
shows the purposed image, their communication is in line with their brand elements, and their
channel shows their communication.

Unfortunately, we believe that Telkomsel Loop Mission, particularly in “Digital Innovation” is

not carried well on their branding strategies. Their brand elements did not show any hints of
innovation, nor do they tried to do so. Communications they used are focused on fun activities
and not on actual innovation activities, appealing to the more sport-centered target market rather
than innovation-centered community.

Their packaging and communication chose to not show their Tagline, which is unfortunate,
because doing so might prevent customer to emotionally connect with Loop brand value. Their
tagline is the only front they used to communicate their brand image of social influencer, and
choosing not to shows the tagline would be considered inconsistent.

Their brand communication, #HypBarengLOOP, while mentioned in various channel, are not
focused. Telkomsel Loop launched several campaigns together with different theme, such as
#LoopKePo2017, #LoopLineStickers, and #iLoopRun, which are blasted through the same social
media channel. These activities would create an information overload for their target market,
rendering them unable to discern the necessary information.

Telkomsel Loop also had yet to use their other channel for their brand communication.
Telkomsel Loop had created a digital platform website (Loop.co.id) as shown in Figure 3.1. This
platform is used as an online shop, promotion channel, and community forum; but their brand
communication have yet to be posted on this website.
Figure 3.1. Telkomsel Loop Loop.co.id
 CHAPTER 4

BRAND EXPLORATORY REPORT

4.1.Competitor Analysis
4.1.1. XL Axiata
XL Axiata offered a middle valued data connection package, with lower coverage area
supported by 84,000 BTS all over Indonesia. Targeting youth market, XL Axiata
promoted “XL, Sekarang, Bisa!” which provided high-speed internet connection in large
and small cities in Indonesia. Their brand strategies focused on offering additional
package for Youtube usage. Currently, XL Axiata reached 20.8% market share in the
youth segment, second only to Telkomsel Loop.

4.1.2. Indosat Ooredo (IM3)

IM3 Indosat Ooredoo offered the highest value data connection package, with the lowest
coverage area in the competition. Supported by 50,000 BTS in Indonesia, IM3 covered
only big cities in Indonesia. While targeting the same youth market segment, IM3
perceived their customer as individualistic generation, which is why they focused on
giving additional data package for iFlix (movie streaming application) and Spotify (music
streaming application) usage. Currently, IM3 covered 18.4% of youth market segment in
Indonesia.
 Table 4.1. Loop, Xl, and IM3 Competition Matrix

Telkomsel Loop XL Axiata IM3 Indosat Ooredoo

Averaged
Price per 10900 5800 4000
GB
BTS
100000 84000 50000
Number
Area Big and small cities in
All over Indonesia Big cities in Indonesia
Coverage Indonesia
For Indonesian Youth, XL
For Indonesian Youth, For Indonesian Youth,
is a Data connection
Telkomsel Loop is a Data IM3 is a data connection
provider that offered
Point of connection Provider that provider that offered
affordable high-speed
Difference offered premium High- cheap internet
internet for youth in big
speed and constant internet connection for youth in
and small cities in
access all over Indonesia big cities in Indonesia
Indonesia
Market
25% 20.8% 18.4%
Share
4.2.Extended Strategic Brand Mapping
Based on interview with 30 respondents and questionnaire of 100 respondents, researcher
concluded the extended strategic brand mapping of data connection provider in Indonesia as
follows:

Figure 4.1. X-SBM of Data Connection Provider in Indonesia

As shown in figure 4.1., Telkomsel Loop is associated strongly with being an expensive data
provider, but with the widest coverage area. Moderately associated as a trusted brand, Loop
is shown as as a trusted choice for youth. Meanwhile, XL shows a perception of cheap yet
fast data connection provider although moderately unstable. Being trusted is less associated
as a trusted brand, mostly because their unstable connection. IM3 is strongly associated as a
cheap data connection provider, but highly unstable. IM3 also moderately associated with
Spotify. No respondents mentioned that IM3 and Loop are providing them with fast data
 connection. All respondents agree that all of these brands are targeted toward youth, but
Loop had been shown to have the strongest association with the young generation.

4.3.Customer Brand Journey

Researcher also conducted a Brand Journey research toward the three brands mentioned,
which resulted as follows:

Table 4.2. Loop, XL, and IM3 Customer Brand Journey

Exposure Loop XL IM3

Touchpoint Telkomsel SMS XL SMS IM3 SMS

s
Loop advertising in XL packaging in IM3 advertising
Instagram pan stores in Spotify

Loop packaging in pan XL advertisement IM3 packaging in

stores in Youtube pan stores

Loop name on event

banner sponsorship

Passes by Telkomsel
GraPARI

Passes by Loop Arena

Table 4.2 shows that customer would interact with Telkomsel Loop more often than other
brands. All brands are simultaneously encountered in pan shops (warung) when customer
purchase bottled drinks or cigarettes. All brands conduct an SMS blast to their customer,
which creates another routine touchpoints with the brand. All brands have their own
preferred communication channels – while Telkomsel Loop mostly shown in Instagram
Sponsored Ads, XL is mostly shown in Youtube ads while IM3 are most often heard of in
Spotify advertising.

Telkomsel is shown to be the most active brand on sponsoring events, thus create a touch
points for customer when passing by a banner. Several respondents mentioned that seeing
Telkomsel Loop logo in an event creates a perception that Loops is a brand with
extensive and expensive marketing campaign. Additionally, Telkomsel Loops with their
GraPARI station and Loop Arena also create another touch points for user that passes by
the area.
 CHAPTER 5

BRAND EXPLORATORY INTERNAL-EXTERNAL INTEGRATION ANALYSIS

Based on the brand Inventory and Exploratory research conducted, it is shown that there are
several gaps between what Telkomsel Loop intended to convey and what customer perceived.
100% respondents aware of the existence of Telkomsel Loop, and more than 90% claimed to
know Telkomsel Loop. Only 12% respondents correctly answered Telkomsel Loop Tagline,
which means that these information are not yet well-received by the customer.

Respondents also perceived Telkomsel Loop as an expensive brand, a premium, high-class data
connection provider that are meant for those who have means to travel a lot. They agree that
Telkomsel provides the strongest and most reliable data connection, but complained that
Telkomsel Loop price per GB is too expensive.

While respondents mentioned that they touching Telkkomsel Loops points on a daily basis, only
27% respondents actually know the content of their brand communication. Information regarding
Telkomsel Loop price package only received once a month, when the customer are refilling their
data package through their phone. SMS blast from Telkomsel and other provider are considered
a nuisance, and they hardly checked the content.

Overall, Telkomsel Loop and other brands do have gained a high level of awareness from their
target market, and quite a good level of brand relevance. But, the only reason their customer
stayed using their brand is because it is too much of a hassle to switch provider and change their
contact number. Thus, Telkomsel Loop are lacking in maintaining customer loyalty. 60%
interview respondents mentioned that they are willing to change their provider to XL or IM3 if
an unavoidable opportunity arises – such as if they lost their phone and need to bought a new
data provider.
 CHAPTER 6

CONCLUSION

While Telkomsel Loop had maintained a quite large market share, it is on a fragile position in
maintaining customer loyalty. They are lacking in means to provide their customer with
meaningful information, and create almost no customer loyalty. Telkomsel Loop is also unable
to convey their innovative ideas and the image of being a digital innovator toward their
customer. Their most used communication channel, the daily SMS blast, are considered a
nuisance by their target market and are hardly conveying any meaningful message. Telkomsel
Loop is perceived as an expensive, high-end brand for socially active and sporty young people,
with price per GB almost twice as expensive as their competitor. Thus, we believe that it is
necessary for Telkomsel Loop to redesign their marketing communication campaign, channel,
and how they convey their message to their target market.