Omnitel Pronto Italia- Creating Customer Value
Marketing Management
Case Analysis: OMNITEL PRONTO ITALIA, SHOWING HOW CUSTOMER VALUE CAN BE CREATED
Diagnosis: Telecom Italia Mobile (TIM) had a monopoly over the Italian Communications Market. It generated 97% of Italy‟s 7.5% market penetration, also until Omnitel‟s entrance into the market because of the lack of the competition, TIM didn‟t incur the huge marketing costs. TIM‟s marketing strategy was primarily directed towards the uppers echelons of Italian society. Omnitel entered the market in Feb 1995 but they could start the commercial services in December 1995 with network coverage of 40% of the Italian territory. Ominitel thought of its superior customer care as its competitive advantage over TIM, however they could only acquire 1,80,000 subscribers by May 1996. Omnitel was looking for methods to differentiate itself from TIM but at the same time avoiding a price war. Problem Identification The problem was twofold, that of building Omnitel‟s market share while avoiding a price war with TIM, and differentiating brand Omnitel from brand TIM.
5 C Analysis
Company Background: Omnitel was able to obtain GSM license after liberalization and paid Lit.750 bn in Dec „94 to become Italy‟s second GSM operator and launched its commercial service in Dec. 95. They started with a network coverage of 40% of Italian territory. Market share was 4% of the total Italian telecom market. Initially they offered plans similar to TIM but prime focus was on its high-quality customer service, which led to „happy‟ customers and low churn rates. Financial strength of Omnitel was not as strong as their competitor i.e TIL, hence they avoided getting into a price war situation.
Competitor Analysis: The major competitor was Telecom Italia Mobile (TIM) formed in July 1995 after divested from Telecom Italia and was listed separately on Italian stock exchange. The customer base was over 4 million by the end of first quarter of 1986 and had strong roots in Italian
Case Analysis: OMNITEL PRONTO ITALIA, SHOWING HOW CUSTOMER VALUE CAN BE CREATED
Diagnosis: Telecom Italia Mobile (TIM) had a monopoly over the Italian Communications Market. It generated 97% of Italy‟s 7.5% market penetration, also until Omnitel‟s entrance into the market because of the lack of the competition, TIM didn‟t incur the huge marketing costs. TIM‟s marketing strategy was primarily directed towards the uppers echelons of Italian society. Omnitel entered the market in Feb 1995 but they could start the commercial services in December 1995 with network coverage of 40% of the Italian territory. Ominitel thought of its superior customer care as its competitive advantage over TIM, however they could only acquire 1,80,000 subscribers by May 1996. Omnitel was looking for methods to differentiate itself from TIM but at the same time avoiding a price war. Problem Identification The problem was twofold, that of building Omnitel‟s market share while avoiding a price war with TIM, and differentiating brand Omnitel from brand TIM.
5 C Analysis
Company Background: Omnitel was able to obtain GSM license after liberalization and paid Lit.750 bn in Dec „94 to become Italy‟s second GSM operator and launched its commercial service in Dec. 95. They started with a network coverage of 40% of Italian territory. Market share was 4% of the total Italian telecom market. Initially they offered plans similar to TIM but prime focus was on its high-quality customer service, which led to „happy‟ customers and low churn rates. Financial strength of Omnitel was not as strong as their competitor i.e TIL, hence they avoided getting into a price war situation.
Competitor Analysis: The major competitor was Telecom Italia Mobile (TIM) formed in July 1995 after divested from Telecom Italia and was listed separately on Italian stock exchange. The customer base was over 4 million by the end of first quarter of 1986 and had strong roots in Italian