ominitel pronto italia (1)

7/31/2019 Ominitel Pronto Italia (1)

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Omnitel Pronto Italia



TeamDeccan Challangers

Premkumar

Sharafath

NarayanaHariharan

Biswa Ranjan

Narasimha Raju



Q1 .

A. Competitive Advantage

– Superior Customer service• Polite operators,

• Short waiting time,

• One stop calling

B. Launch Failure

– Launching was not able to increase the :

• Trial Rate

– No focus to increase mobile penetration

– No attraction for Existing Mobile Users to switch over from TIM

• Only focus on Post Sales Service



Q2.

A. High Churn rate

– Customer trend which goes with latest fashion,

looking for New Gadgets every time

– Low Entry & Exit Barriers for a customer to

switch

B. Libero Implications



Launch below expectations ?

• Launching was not able to increase the :

– Trial Rate

• No focus on increasing mobile penetration

• No attraction for Existing Mobile Users to switch over

from TIM

– Only focus on Post Sales Service

• For increasing customer Retention ( Lower churn Rate)



High Churn rate• Subsidies on handsets gives an advantage to the

customer to switch over on another network inorder toget the latest gadget on expiry of the contract.High Churn rate-UK-28%,Sweden-20.5% &Lowest Finland-12%

• Incentivizing dealers to sign up new customers insteadof retaining the exsisting customers(Proaching).

• Librelization of Telecom Industry introducedcompetition.

• Customer switching cost must have been relatively low,or incentives to switch relatively high.

• Telecom offers undifferential products/services.Newtariffs easily get replicated by competitors & all offer thesame phone resuling on low brand royality.



Churn rate implications-LIBERO Launch

• The rate plan targeted for the cost consciouscustomers,dissatified with TIM services-Churn rate toincrease for TIM

• Decrease for Omnitel as new customers would beroped in & exsisting would be retained.

• Aggressive advertizing and distribution campaigns willattract the 1st time customers rather than siphoningthe TIM customers.

• Increase in market penetration(presently 7%).Newcustomers to increase more rapidly than lost custmerhence churn rate to decrease as such for Italy.



Learning from Customer research

• Helps to develop effective marketing strategies byuncovering customer preferences as well as-veperceptions/objectives that could limit a strategyeffectiveness.

•

Identify unexplored product benefits/features,optimaltarget markets &potential product spin-off/strategies(Segmentation/Differentiation).

• Allows marketers to guage the relative importance or utilityof a proposed product attributes &to uncover differentiatevarious market segments.

• Stategies can be tailor made to address specific needs of these segments and marketing ,R&D budgets can be allotedaccordingly.



Learning from conjoint analysis

• Telecom industry is heterogenous/Stratified.

• (2) Groups-Cost Sensetive group & Brand/Service sensetive group.

• 8 Identified groups (3) considered monthly charges to be moreimportant than peak/off peak tariffs wheres (5) groups repoted thereverse.

• Rejector group call rate (Tariffs) ranked high in importance followed bymonthly fee & activation charges.

• Rate plans should be tailored to address specific market segments-Peak vs.off peak users/Monthly charge vs.tariff sensetive users/Frequentvs. Infrequent users.

•Prospect group representing the largest potential market segment givenItaly(Penetration of 6.5%) & projected growth of 30% by 2000,higlydriven by Cost/Sp. Tariffs(52%) & Service(33%) & predominantlyrepresented by 24-54 age group.



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USA Finland France Germany Italy Norway Sweden UK

Subscribers

Subscribers Growth

Penetration

Low penetration vs.Subsribers

Overview of Mobile Communication history in Northern & Western Europe,95



Will LIBERO lead to price war?

• Designed to avoid price war by setting higher tariffs.

• Strategy to commoditize cellphones as announced invision statement.

•

Cater different market segment-Market cellphonesas Status Symbol.’If u have a cellphone u are somebody”

• My mass marketing to attract the lower/undermarkets,and have a greater pie.

•

Would attract enough cost conscious new customersto gain market share,Brand recognition & greaterfinancial security in order to survive a future wargame.



Redesigning LIBERO• Instead of completely waiving monthly fee,use an

incentive structure that gradually reduces themonthly fee as usage increase(0 to 193min.)

• No subsidy on handsets,instead keep the tariff &monthly charges lower.

• Partner with established mass retailers-WalMart/Target/Costco to delelop new low cost phonedistribution channel for the untapped,cost sensetivemarkets.

•Aggressive advertizing campaigns to generateconsumer awareness & demand for low cost phonesin order to make consumes buy the phone.

ominitel pronto italia (1)

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