ominitel pronto italia (1)
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7/31/2019 Ominitel Pronto Italia (1)
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Omnitel Pronto Italia
7/31/2019 Ominitel Pronto Italia (1)
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TeamDeccan Challangers
Premkumar
Sharafath
NarayanaHariharan
Biswa Ranjan
Narasimha Raju
7/31/2019 Ominitel Pronto Italia (1)
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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
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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
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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)
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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.
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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.
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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.
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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
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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.
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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.