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  Staying Connected: Telco phone home   Staying Connected: Telco phone home  Renée Alexander  
         
 
Staying Connected: Telco phone home MTS Allstream and SaskTel are hoping to tap into the pride of their home provinces—Manitoba and Saskatchewan, respectively—to boost their profitability and marketshare in this ultra-competitive sector, which is dominated on the national scale by two giants, Bell Canada and TELUS.

But both smaller firms are pulling something out of their marketing bag of tricks that the nationals simply don't have: homerism.

Homerism has nothing to do with Bart Simpson's father or The Odyssey and everything to do with a significant part of a brand's target market being proud of their roots and where they hang their hats.

MTS has focused almost all of its branding efforts on Cindy Klassen, the speed-skating phenom who captured five medals, including one gold, at last winter's Turin Olympics. Even though she now trains fulltime at the National Training Centre in Calgary, she proudly calls Manitoba's capital, Winnipeg, home.

 
At the same time, SaskTel is using homegrown singers and bands in a wide variety of commercials promoting its wireless and other phone services as well as its Internet and television offerings. Andy Tate, media relations director at Regina-based SaskTel, says featuring local talent in commercials and on the company’s website makes both cultural and business sense.

"These are artists known in the province and people like to hear local artists," he says. "It's good for Saskatchewan as far as boosting their appeal. It's not a huge province. People tend to support local entertainers and sports teams. It's a Saskatchewan thing. It brings people together."

Jay Semko, bass player, vocalist, and songwriter for pop band The Northern Pikes, whose song "It's a Good Life" was featured in a SaskTel wireless commercial earlier this year, agrees. The fact that both the company and the band are based in the wind-swept Prairie province with the lowest population density in the country (fewer than 1 million people are scattered over more than 250,000 square miles) makes them a good fit.

"SaskTel is about spreading communication," Semko says. "We've got a small population in a big, spread-out province and the more we can do to be united in some way is good for the whole province. If you've chosen to base yourself out of a place like that, you've got to be brave and have a bit of a pioneer spirit. To survive, you have to have a good work ethic and a good way of looking at the world."

Tate says SaskTel is in a different position from virtually all of its competitors because it's still government-owned—in Canada, it's known as a Crown Corporation. But that also helps the locals recognize the brand, and surveys show, people trust it and want to support it. "People feel ownership of SaskTel and they feel pride," Semko says. "If you can combine the SaskTel brand that people know and trust with local artists, that's a good combination. We think people like it." Some of the other singers teaming up with SaskTel include rock group The Wheatmonkeys, country singer Brad Johner, and Canadian Idol's season two runner-up, Theresa Sokyrka.

Tate adds that even the less recognizable, background-type music used in its advertising is almost always written and produced by Saskatchewan talent. "SaskTel's mandate is to use Saskatchewan talent whenever possible in our commercials. If we can't use Saskatchewan talent, we try to use Canadian talent. We use local artists on an ad hoc basis depending upon the concept of a given ad and whether that artist is a good fit for the campaign."

Stan Kurtas, vice president of marketing at Consumer Markets, the Manitoba division at MTS Allstream, says the company decided to pursue a partnership with Cindy Klassen because it felt strongly that she epitomized the telco's brand. Her hard work ethic, honesty, and trustworthiness generate a real level of comfort among Manitobans, he says.

 
(Klassen signed a four-year deal worth more than CDN$ 1 million [US$ 890,500] that will take her through the 2010 Olympics in Vancouver-Whistler, when the now 27-year-old will supposedly be at her physical peak.)

"I would describe her competitive desire as Mount St. Helens on fire," Kurtas says. "But off the ice, Cindy is one of the more genuine and likeable people you're ever going to meet. She's not arrogant, and her values system and our brand match up very closely." He notes parallels between MTS's 2004 jump to the national stage with the acquisition of Allstream Inc. and Klassen taking her performance to the next level at Turin.

Kurtas adds that Klassen's obvious speed on the oval is a good fit for a company that prides itself on the lightning quickness of the wires and cables in its network. Canada's most successful Olympian will not, however, be "getting down in the muck" to sell MTS products.

"We want her to rise above being a salesperson for us," he says. "We want to preserve our brand image—and certainly not diminish hers in any way—by relegating her to a pitch person. She's recognized for her Olympic medals and we'll utilize those types of images to evoke associations with our services."

Brian Sharwood, Toronto-based principal analyst at the SeaBoard Group, a telecommunications consulting company, says the "buy local" pitch has been executed countless times. One of the best examples is in the book-retail sector, with Indigo Books & Music appealing to its Canadian customers to support it over US competitors such as Amazon.com.

"[MTS and SaskTel] are trying to differentiate themselves on a local level," Sharwood says. "By localizing they stand a better chance of getting market share. The brand comes off as being a local brand."

He adds, "They're saying, 'This is your province, this company supports you. If you support [a non-local competitor] then you're supporting people elsewhere to whom we don't relate.' "

Sharwood admits it's difficult to find something that appeals to everybody in a particular market. Another telco, Sprint Canada (acquired by Rogers Communications in 2005), used actress Candice Bergen as their spokesperson in the late 1990s at the same time as she was promoting its US-based sister company.

"A lot of Canadians didn't like the fact they used her," he says. "They thought [the campaign] was too far-reaching. She had no connection to Canada."

Semko admits that when The Northern Pikes first hit the Canadian charts in the late 1980s, they received plenty of lucrative offers to use their music in promotional vehicles—but the quartet felt they would have been selling out.

"Would it have really made that big a difference? I don't think so," he says. "It would have put a little more dough in our pockets and we could have got a little more exposure. You just don't want to put yourself in a position where you're having somebody question your morals. It's not like SaskTel is a drug company or selling cigarettes."

Semko says if the artist agrees with the concept and a company wants to offer payment in exchange for using his music, he doesn't have a problem with it.

"It can be a pretty difficult business we're in, but everything is good and everything will be better," he says with a laugh, "if you have a SaskTel cell phone."    

[6-Nov-2006]

 
  
  

Renée Alexander is a freelance business and lifestyle writer based in Winnipeg, Canada.

     
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