I'm a little hesitant to post about Dubai's most splendid and admirable new telecom operator Du again, because last time I took a pop at them the blog was flooded by readers from Du network addresses and picked up some really daft comments from people using Du's corporate network. You can tell they worked for Du because they had Du IPs and they also referred to Du as du which is something only a du employee would Du.
So they care too much, in short.
But I can't resist. We have a new special offer from the telecom operator that likes to say 'Whaaaaaaat?' in the form of a mobile package that offers you a new Du line for a mere 1 Dirham. Yes! Pay only Dhs 55 and get 54 Dhs back in airtime! That means just Dhs 1 for your super Du line!
Except that Dubai's new mobile operator's previous promotion offered subscribers a line for just 1 Dirham! All they had to do was buy a line for Dhs 155 and they got Dhs 154 back in airtime! That meant just Dhs 1 for your line!
The difference, smarter readers will note, is that they've dropped the package price by Dhs 100 ($27 or so, depending on whether we keep the peg of Dhs 3.657 to the Yankee Dollar, which seems likely).
I'm not sure I get it. They're trumpeting a million happy users, but they're dropping their pants on price and the barrier to adoption alike with a promotion that is pricing a new Du line at $15 and presenting it as a 98% cashback deal. Next it'll be a line for Dhs 2 - with Dhs 1 in airtime...
And I still have not had ONE person who has failed the 'Du Test'. So I'm still a little cynical about those million users, too.
If you can't sell a mobile line for Dhs 1 (30-odd cents), what CAN you sell it at? If the barrier to entry, at Dhs 155, is too high in a country with one of the world's highest GDPs per capita, what ARE they getting wrong?
Is dropping price the answer, then, for Du? Or is it time for the company to perhaps consider some smart, differentiated marketing together with a range of targeted service propositions that intelligently segmented audiences in the UAE will buy?
No, I thought not. It's back to mindless jingles and pointless promos then. Watch out for the 'Win a Bar of Gold With Du' promotion. It's only a matter of time...