OMNITEL PRONTO ITALIA

GROUP 4 SEC-A
KADAMBINI (PGP30257) | APARAJITHA (PGP30364) | MEHAK
(PGP30380) | RISHIKALPA (PGP30389) | SHWETA (PGP30394)
| SWATI (PGP30397) | UDBHAV (PGP30403)

What the case is about?

Omnitel A
telecommunications
company entering into
Italy market
TIM (Telecom Italia
Mobile) a state owned
incumbent held
monopoly (97%) over
the market
1987
dominate
d by 12
state
owned
telecom
behemoth
s

Peak hours-: Lit.

1524/min
Off hours: Lit.
170/min
Monthly fee:
Lit.10,000
Setupof
Fee:
Types
Lit.10,000
tariffs:
Eurofamily
Europrofessi
onal
Ready to go
prepaid card

1994,
cellular
telephony
liberalizat
ion

Peak hours-: Lit.

1524/min
Off hours: Lit.
170/min
Peak
hours-:
Monthly
fee: Lit.
663/min
Lit.10,000
Off hours: Lit.
206/min
Monthly fee: July 1995,
Lit.50,000
TIM was

Feb 1995,
Omnitel
entered
the
market

formed when
it divested
from
Telecom
Italia and
listed
separately
on exchange

Ready
to go
Peak
hours-:
Lit.
2016/mi
n
Off
hours:
Lit.
224/min
Validity:
3
months

TIM

Positioning
Strived for
perception

Possession of cell phone

depicted as status
symbol

vs.Akin to positioning
OMNITEL
of wrist

Cell phone is expensive

and exclusive possession
that only people of
certain stature had a
right to own

watch

Cell phone is personal and

indispensible product

Target
customer

High end customer

seeking status

Low end as well as high

end customers seeking for
high quality service

Focused on

Creating a Luxury
premium product
perception

Differentiate on the bases

on high quality customer
service and use it as
competitive advantage

Market share

4%

Market Research
Insights
Monthly fees an issue of
contention

Eliminating the
fees could
increase number
of subscriptions
and the volume of
usage

Cellular phone a status

symbol

Psychological
barrier alter this
perception

Need for a different set of

tariffs

Customers did not

mind paying >Lit.
170/min up to Lit.
200 per minute

Free Time Vs Libero