implementing geomarketing as a strategic planning …[email protected] +55 21 8113-1110...

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25 e 26 de Janeiro de 200625 e 26 de Janeiro de 2006

Implementing Geomarketing as a Strategic Planning Tool

ESRI International User ConferenceSan Diego, August 2006

Authors: Rafael Marquez and Rodrigo Brito

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Telecom Italia Mobile (TIM) is a major wireless operator offering mobile communication services throughout Brazil. Each of our regions is unique and has different customer needs and competitive environments. GIS assures that important informationsuch as the behavior of our potential customers and competitors per micro region can be visualized and analyzed.

This allow us to proactively anticipate our competitor’s actions and optimize our resources/network coverage to best meet regional demands and to be closer to our customers.

Our challenge is to implement an efficient enterprise GIS aligned with TIM's strategy. In order to reach this objective we are establishing the same analytical criteria for all regions and are using a unified geographic database. This will allow us to be consistent with our decision making process and will allow us tocompare regional data in order to implement our regional/national marketing plans.

Abstract

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Source: IBGE; Anatel (May/06)

Mobile Customers: 90.5 million Prepaid: 80.5% (72.9 million)Postpaid: 19.4% (17.6 million)

Market share by operator: Vivo: 33.0%TIM: 23.6%Claro: 22.2%Oi: 12.8%Other operators: 8.4%

Area: 8,498,293.97 km2

Population: 184,184,227 inhabitantsState Divisions:27GDP 2005: US$ 796 billionGDP Per Capita 2005: US$ 4,321

Mobile Market in Brazil

BRAZILIAN DEMOGRAPHIC CHARACTERISTICS REINFORCES THE IMPORTANCE TO DEVELOP AN INTELLIGENCE IN GEOMARKETING

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• Launching of TIMon the Brazilian market: 3 distinct operators

• 3 or 4 operators per regionTIM Brazili: the

only mobile operator with a

national footprint

… 2002 2003/2006

• Inefficiency

• High Prices

• Low Quality

1998

• 1st Auction•Beginning of the Competition

Monopolium:State-owned Telebras

• Market Consolidation• 2nd Auction:• Launching of 9 GSM operators

• Launching of TIM in new regions

• 1 multi-regional GSM operation

• 5 Main Players:• TIM• Vivo• Claro • Oi• Brasil Telecom

Evolution of TIM in Brazil

• 2 operators per region

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9.1 K

Covered Cities (GSM/GPRS) > 2.3 K

Covered City Population 91%

Total Customer Base (March/2006) 21 Million

Outsourced Employees 36 K

Ebitda (March/2006)Ebitda margin over total net income

Covered Cities (EDGE) > 400

Market Share (March/2006) 23.6 %

Market Share GSM (Mar/2006) 37.0%

Direct Employees

R$ 518.2 million

24.3%

TIM Brazil Figures

Source: TIM Brazil Human Resources; Anatel (May/06); TIM Brazil Balance Sheet 1Q06

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• “Act locally”: all regions of Brazil present different maturity stages and competitive environments.

• Optimize the allocation ofresources: “surgical actions”

• Alignment between the company national strategy and the regionaltactical plans

(1) Identification of the peculiarities ofthe regional market through the visualization of the behavior of themicro region;

(2) Geographic delimitation of the actions in accordance with the location/concentration of the clients,consumption potential, traffic,coverage, sales channels, etc.

(3) Uniformization of the reading of the realities of the territories and analysis criteria through a unified geographic basis

A strategic tool to drive marketing decision process:

TIM Brazil Geomarketing Project

Strategic Goals Geographical Analysis

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Holding& Operators Holding

Holding& Operators

Holding& Operators

Edition and creation of data

Analyses and studies

Viewers Information Entry

Data ServicesData Services

Desktop ApplicationWeb Application

DWDW

BusinessRules

•Remote access profile to TIM operators:• consultation• updating in simulation• updating in production

•Unique integrated and stored database on aserver

•Possibility of consultation on the web

GIS Architecture in TIM Brazil

Information ServicesInformation Services

Holding(cartographic bases,current spot, internal data) & Operators(POS of the competition)

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Distribution Channel Analysis

Voice Traffic Analysis

Case Studies

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Click to edit Master title style



TIM x Competitors

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Households:Very low concentrationLow concentrationAverage concentrationHigh concentration

Voice Traffic# Low Traffic# Average Traffic# High Traffic

Porto Alegre, Downtown Porto Alegre, Downtown -- DiagnosticsDiagnostics::High concentration of direct channels was found,especially on Av. dos Andradas, showing an overlapof POS.

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#

###

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CENTROAVENIDA MAUA

RUA RIACHUELO

RUA DOS ANDRADAS

RU

A VI

GAR

IO J

OSE

INAC

IO

RUA

DO

UTO

R F

LOR

ES

AVENIDA JULIO DE CASTILHOS

RUA URUGUAI

RUA VOLUNTARIOS DA PATRIA

RUA GENERAL CAMARARUA SIQUEIRA CAMPOS

RU

A M

AR

ECH

AL

FLO

RIA

NO P

EIX

OTO

RUA JERONIMO COELHO

RUA CALDAS JUNIOR

RUA GENERAL VITORINO

AVENIDA ALBERTO BINS

RUA SETE DE SETEMBRO

AVENIDA OTAVIO ROCHA

RUA C

OR

ON

EL V

ICEN

TE

RU

A SENH

OR

DOS PA

SSO

S

RUA PROFESSOR ANNES DIAS

RU

A CAR

LOS C

HAG

AS

AVENIDA OSVALDO ARANHA

RUA JOSE MONTAURY

AVENIDA JOAO PESSOA

RUA GENERAL ANDRADE NEVES

PRACA DA ALFANDEGA GALERIA ROSARIO

VIADUTO

JOSE

LOURE

IRO DA SILV

ASEM

NOME

PRAC

A P

ERE

IRA PAR

OB

E

PRACA MONTEVIDEO

AVENIDA MAUA

RU

A CO

RO

NE

L VICE

NTE

Analysis of the Sales Profile of the region

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#

#

#

CENTRO

RUA DOS ANDRADAS

RUA URUGUAI

RU

A DO

UTO

R F

LOR

ES

RU

A VI

GAR

IO J

OSE

INA

CIO

RUA GENERAL VITORINO

AVEN

IDA B

OR

GE

S DE M

EDE

IRO

S

RUA VOLUNTARIOS DA PATRIA

RUA

MAR

EC

HAL

FLO

RIA

NO

PEI

XOTO

AVENIDA OTAVIO ROCHA

AVENIDA JULIO DE CASTILHOS

RU

A SENH

OR

DO

S PASS

OS

AVENIDA MAUA

AVENIDA SENADOR SALGADO FILHO

RUA JOSE MONTAURY

RUA GENERAL ANDRADE NEVES

GALERIA ROSARIO

RUA SIQUEIRA CAMPOS

PRACA OTAVIO ROCHA

PR

ACA P

ERE

IRA PA

RO

BE

GALERIA MERCADO PUBLICO

RUA SETE DE SETEMBRO

AVENIDA ALBERTO BINSLARGO JORNALISTA GLENIO PERES

PRAC

A R

UI BA

RBO

SA

PRACA MONTEVIDEO

TRAV

ESSA

EN

GE

NHE

IRO

AC

ILIN

O D

E C

AR

VALH

O

AVENIDA SENADOR SALGADO FILHO

LARGO JORNALISTA GLENIO PERES

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Voice Traffic Analysis

Mother’s Day Promotion Impacts on Customer Mobility

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Currently

Working Day

Before

Sunday

Currently

Saturday

Currently

Sunday

Before

Saturday

Before

WDay

LegendLow

Medium

High

Back to Menu

Traffic before the Promotion – Working Days

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Currently

Working Day

Before

Sunday

Currently

Saturday

Currently

Sunday

Before

Saturday

Before

WDay

LegendLow

Medium

High

Back to Menu

Traffic before the Promotion – Saturdays

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Currently

Working Day

Before

Sunday

Currently

Saturday

Currently

Sunday

Before

Saturday

LegendLow

Medium

High

Before

WDay

Back to Menu

Traffic before the Promotion – Sundays

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Currently

Working Day

Before

Sunday

Currently

Saturday

Currently

Sunday

Before

Saturday

LegendLow

Medium

High

Before

WDay

Back to Menu

Traffic during the Promotion – Working Days

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Currently

Working Day

Before

Sunday

Currently

Saturday

Currently

Sunday

Before

Saturday

LegendLow

Medium

High

Before

WDay

Back to Menu

Traffic during the Promotion – Saturdays

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Currently

Working Day

Before

Sunday

Currently

Saturday

Currently

Sunday

Before

Saturday

LegendLow

Medium

High

Before

WDay

Back to Menu

Traffic during the Promotion – Sundays

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Appendixes

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Coverage Information

TIM X COMPETITORS

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Market Data Analysis

Social Classes and Industries Concentration

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O O Indústrias

OO Serviços

O O Comércios

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Customer Base Analysis

Top Clients Concentration

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Concentração de Clientes AB

Baixa Concentração

Média Concentração

Alta Concentração

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Technical Support Services Analysis

Distribution gap relatively to customer base

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Municipíos sem AT – Com mais de 100.000 clie

Municípios sem AT / PC – 1.000 a 5.000 clientes

Municípios sem AT / PC - 5.000 a 10.000 cliente

Municípios sem AT / PC - 10.000 a 100.000 clie

SUPPLIER ANALYSISMunicípios ok

SUPPLIER ANALYSIS

Municipíos sem AT – > 100k

Municípios sem AT / PC – 1k a 5kMunicípios sem AT / PC – 5k a 10kMunicípios sem AT / PC – 10k a 100k

Municípios ok

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Rafael Sant’Anna Marquez

TIM Brazil

Marketing Intelligence Manager

[email protected]

+55 21 8113-1110

Authors Information

Rodrigo Brito S. Santos

TIM Brazil

Marketing Intelligence Specialist

[email protected]

+55 21 8113-3669

implementing geomarketing as a strategic planning …[email protected] +55 21 8113-1110...

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