Omnitel Tivo

PGP/16 Section-C GROUP 4 Shashank Singh Kartik Kumar Samala Veeranjaneyulu K Mohamed Anas Pradeep Kumar Hota

Omnitel

Problems to address
Is LIBERO a good model for customer acquisition? Will there be a price war? Market research, which segment to target? Cost sensitive model? How do you convince the CEO? How much money each plan is going to make? How do you deal with dealers? Are you using mobile phone because it is a mobile phone or some other reason? Comparison of monthly charges.

Concepts learned
Market penetration Market share Market segmentation Pricing strategy Price discrimination CAGR Customer acquisition Customer retention Churn rate Present Value concept

Price comparison
Omnitel Current plan Total duration(min) Incoming call duration peak time off peak time Outgoing call duration peak time off peak time Total peak time Total off peak time Cost 188 100 25 75 88 13 75 38 150 103412 LIBERO 193 100 25 75 93 13 80 38 155 100835

Churn rate
A churn rate is a killer In the industry Dealers will be unhappy Loss in good will Loss in brand equity over time When DC and HS exits, CR is very high

Country
Sweden Norway UK Finland

Dealer Commission
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Handset Subsidy
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Churn Rate(%)
20.5 22 28 12

Recommendations
They should charge for the handset Plan should be contract free Usage based segmentation Capitalize on the customer base which is already there Difference in costs is only Lit. 2577 , pricing strategy needs to be improved

TIVO

Problem Statement
The key issue was promotion as it was totally different from that of competition Ambiguity regarding product in the minds of consumers, media and distributors

Analysis

Tivos potential inputs to advertisers

Aggregate information Revealed preferences

Analysis
Value = (Benefits/Cost) Benefits Fast Forward, Recording, Automatic Recording, Psychological Benefits Cost- Physical Costs.

Concepts Learned
Willful overpricing to develop curiosity Positioning is the key Information asymmetry leads to market collapse Product vs Service Market driven Vs Market driving perspective

Recommendation
Improve advertising strategy