Omnitel Pronto ItaliaSyndicate 5

Agung Mahendra 29111324Rangga Tri Raeros 29111314Joseph Enrico 29111349Reski Mapriharto 29111326Gilang Surawijaya29111350

Category Analisis Worksheet

• 3794000 subscriber, penetration 6,5%, subscriber growth 61 % (1995)• Cellular penetration was 7.5% by the end of the first quarter of 1996

Segment description

• Current trends : • Offer subsidized handset• Peak and off-peak hours price rate

• Emerging Trends : • Different tariff for local calls, long-distance calls, and international calls

Current and Emerging Trends

• Outgoing call (13 minutes at peak, and 80 minutes at off peak)• = (Lit. 1595 x 13) + (Lit. 195 x 80)• = Lit. 36335 / month

Estimated Profit Potential of Trends

• Free monthly fee• Payment base on the cellular phone use rate,• Free activation fee,

Trends Needs not being met

In 1996, Italy celullar penetration just reach 7.5%, it mean that 92.5% unpenetrated by celullar operator.

From 92.5%, it can be people who ever use the celullar operator services, and people who never try celullar operator services.

TIM dominate the celullar bussiness market because they are the pioneer of the celullar operator bussiness.

Omnitel as the new cellular operator want to gain bigger market share in Italy, so they want to launch new product that facilitate public needs, called LIBERO.

  Personal Users Prospects Rejector

Brand Loyal 18-34 yoUse mainly of peak

25-34 yo More educated

Females, non workig individuals, more employees and housewife

Service sensitive

25-44 yo 25-44 yo Midclass

More males, more self-employed

Peak charge 25-34 yo 25-34 yoHigher social class with small families

Younger profile, more educated

Cost sensitive Almost 60% employees

25-54 yoMore professionals

Mid class, employees and retired people

Personal Users Prospects RejectorBrand LoyalService sensitive -9 to brandPeak charge -10 to brandCost sensitive -13 in services

From conjoint analysis we can know that most of all the Italy market (personal user, prospector, and rejector) very concern to the service.

From conjoint analysis we have the data that show prospector and personal user has negative value in services based on the brand and peak charge.

Omnitel can emphasize this situation to gain the big market share because Omnitel has a good image as the best celullar services.

So based on the conjoint data, LIBERO target market should :

Target ReasonPrimary Target

Prospector Base on the conjoint data, the prospector has negative value to brand toward the service

The prospector is the part of people who unpenetrated (92.5%)

Most of the prospector is unsatisfied by Telecom fixed, and concern about service and cost sensitive.

Secondary Target

Personal User Based on the conjoint data, the personal user has negative value in services toward to cost, and negative value in brand toward to peak charge.

Most of the personal user is a willing to switch person

Tertiary Target

Rejector The rejector is the part of people who unpenetrated (92.5%)

Most of the rejector concern to monthly chargeand activation cost.

Target Audience Worksheet

  Demographics

Psychographics

Size of Market

Distribution Points

Media Reach

Primary Target

25-44 yomidclass

Unsatisfied by telecom fixed and positive on private operator

 50% Cellphone shopping center, Omnitel Shop, join venture with credit card

TV, newspaper and magazine, bilboard

Secondary Target

FemaleMore educatedEmployees and house wifeRetired people

   25% Cellphone shopping center, Omnitel Shop, mall, event, personal selling

TV, newspaper and magazine, bilboard

Teritary Target

25-34 yoalmost 60 % employees

Early adopters, willing to switch, mainly off peak calls

 25% Cellphone shopping center, Omnitel Shop, join venture with credit card

TV, newspaper and magazine, bilboard

Competitive AnalysisTop 5 Brands

Estimated Sales

Points of Differentiation

Perceived Quality

Pricing Value Proposition

Core Brand Message

Estimated Marketing Budget

TIM Euro Family

Target for residence subscribers

Celullar pioneer

10000 of Monthly FeeWeekdays 1524 - 170Weekend & Holidays 170 in 24 hours

Pioneer in GSM service in Italy & market leader

You have cellular phone and you are somebody

$12.5 million include all TIM marketing budget

TIM Euro Professional

Target toward business customer

50000 of Monthly FeeWeekdays 412-663-412-256-206Saturday 412-206Holidays 206 in 24 hours

Omnitel Libero : Lit 437268

Middle class customerHigh quality customer service

Best customer service

No monthly fee1595-195

New entrant telecomunication in Italy that offer high quality service

We listen to you

$25million

Points Differentiation Worksheet

Brands Parity Features Meaningful of Points DIfferentiation

#1 reason people buy the brand

TIM Euro Family - Monthly fee- Mobile phone subsidied- Same monthly fee with

Free time (10000)- Same tariffs in

weekdays, weekend and holidays with free time Omnitel

- Target for residence subscribers

- TIM is the first telecomunication provider in Italy

TIM Euro Professional - Monthly fee- Mobile phone subsidied

- Target toward business customer

 

Omnitel Free Time - Same monthly fee with Eurofamily (10000)

- Monthly fee- Mobile phone subsidied- Same tariffs in

weekdays, weekend and holidays with free time Omnitel

  - Good customer service quality.

Omnitel Night/Day - Monthly fee- Mobile phone subsidied

   

Omnitel Libero   - Free Monthly fee - Not to have pay a monthly fee

Brand Positioning

Believable Options 3 Most StrategicSmart XTrendy XCool XEfficient √The Pioneer √Service √   

• There was 3 most strategic believable option to support LIBERO asthe new product from that fit with the customer want :1. Efficient2. The Pioneer3. Services

Brands in Category Key Customer Benefits Brand Positioning Statement

TIM Euro Family   Mobile phone subsidizedLower tarrif per minutes

  

 TIM is a pioneer of celullar operator,and the celular

market leader.TIM Euro Professional

Omnitel Free Time  OMNITEL is the best customer services in celullar operator

bussiness. 

Omnitel Night/Day

Omnitel Libero • Free activation cost, • freemonthly fee 

LIBERO is the celullar operator for people who want the

efficient tarrif, because LIBERO offer free activation cost, and

free monthly fee 

•As a new inovation from Omnitel, that has a meaningfull different from the competitor (TIM). This differentiation can use as the benefits we can offer to the consumer, such as free activation cost, free monthly fee, and efficient tarrif (because the customer just need to pay tarrif based on the use rate).

Brand Element

Element LIBERO

Memorability • When it launch to market, it will be remember by Italian as the first one that offer flexibility in tariff package

• “LIBERO” means “Free” , it is easy to remember because it’s association with “free of taxes and monthly fees”.

• LIBERO should use logo that simple and easy to remember

• Using mascot to leverage promotion

Meaningfulness

• “LIBERO” means “Free” , because it is “free of taxes and monthly fees”.

Likeability • Interesting offering, free of monthly fees and flexible tariff usage

• High quality costumer service

Transferability

• The name “LIBERO” not directly linked to mobile service so it become easily transferred across category

• “LIBERO” is in Italy, it is more difficult to expand across Italy region boundaries

Brand Element

Element LIBERO

Adaptability • Using simple logo that can be retouch or remade for future condition

Protect ability

• Check if brand name has not been patented• Register the brand name to be patented to protect

the brand legally• Do check and register the brand name when

expand to another region

•For Italy market,LIBERO has a good name. It because it name (LIBERO) expressed the benefit from the product. So consumer can easily remember name of the product.•The name can also use in another country,because LIBERO has a simmiliar meaning with LIBERTE or LIBERTY, that mean freedom (express the product benefits).

Conclution

LIBERO target is prospector (primary), personal user (secondary), and rejector (terttiery)

LIBERO positioning : LIBERO is the celullar operator for people who want the efficient tarrif, because LIBERO offer free activation cost, and free monthly fee 

Libero should be the endorse brand because with endorse brand, OMNITEL has a good service image and can break from competitor’s territory, in this case TIM.