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Omnitel Pronto Italia
Syndicate 5
Agung Mahendra      29111324
Rangga Tri Raeros   29111314
Joseph Enrico       29111349
Reski Mapriharto    29111326
Gilang Surawijaya   29111350
Category Analisis Worksheet
 Segment description

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

 Current and Emerging Trends

 • 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

 Estimated Profit Potential of Trends

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

 Trends Needs not being met

 • Free monthly fee
 • Payment base on the cellular phone use rate,
 • Free activation fee,
   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
Personal Users       Prospects             Rejector
Brand Loyal         18-34 yo             25-34 yo              Females, non
                    Use mainly of peak   More educated         workig individuals,
                                                               more employees
                                                               and housewife

Service sensitive   25-44 yo             25-44 yo              More males, more
                                         Midclass              self-employed
Peak charge         25-34 yo             25-34 yo              Younger profile,
                                         Higher social class   more educated
                                         with small families

Cost sensitive      Almost 60%           25-54 yo              Mid class,
                    employees            More professionals    employees and
                                                               retired people
Personal Users       Prospects        Rejector
Brand Loyal
Service sensitive                           -9 to brand
Peak charge            -10 to brand
Cost 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          Reason
Primary     Prospector         Base on the conjoint data, the prospector
Target                         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   Personal User      Based on the conjoint data, the personal
Target                         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    Rejector           The rejector is the part of people who
Target                         unpenetrated (92.5%)

                                Most of the rejector concern to monthly
                                chargeand activation cost.
Target Audience Worksheet
            Demographics     Psychographic        Size of Market   Distribution      Media Reach
                             s                                     Points
Primary     25-44 yo         Unsatisfied by       50%              Cellphone shopping TV, newspaper
Target      midclass         telecom fixed                         center, Omnitel    and magazine,
                             and positive on                       Shop, join venture bilboard
                             private operator                      with credit card


Secondary   Female                                25%              Cellphone shopping TV, newspaper
Target      More educated                                          center, Omnitel    and magazine,
            Employees and                                          Shop, mall, event, bilboard
            house wife                                             personal selling
            Retired people


Teritary    25-34 yo         Early adopters,      25%              Cellphone shopping TV, newspaper
Target      almost 60 %      willing to switch,                    center, Omnitel    and magazine,
            employees        mainly off peak                       Shop, join venture bilboard
                             calls                                 with credit card
Competitive Analysis
Top 5          Estimated      Points of         Perceived   Pricing            Value         Core Brand     Estimated
Brands         Sales          Differentiation   Quality                        Proposition   Message        Marketing
                                                                                                            Budget
TIM Euro                      Target for        Celullar    10000 of           Pioneer in    You have       $12.5 million
Family                        residence         pioneer     Monthly Fee        GSM           cellular       include all
                              subscribers                   Weekdays 1524      service in    phone and      TIM
                                                            - 170              Italy &       you are        marketing
                                                                               market        somebody       budget
                                                            Weekend &
                                                                               leader
                                                            Holidays 170 in
                                                            24 hours
TIM Euro                      Target toward                 50000 of
Professional                  business                      Monthly Fee
                              customer                      Weekdays
                                                            412-663-412-256-
                                                            206
                                                            Saturday 412-
                                                            206
                                                            Holidays
                                                            206 in 24 hours
Omnitel        Libero : Lit   Middle class      Best        No monthly fee     New           We listen to   $25million
               437268         customer          customer    1595-195           entrant       you
                              High quality      service                        telecomuni
                              customer                                         cation in
                              service                                          Italy that
                                                                               offer high
                                                                               quality
                                                                               service
Points Differentiation Worksheet
Brands                  Parity Features                 Meaningful of Points          #1 reason people buy the
                                                        DIfferentiation               brand
TIM Euro Family         -   Monthly fee                 -    Target for residence     -    TIM is the first
                        -   Mobile phone subsidied           subscribers                   telecomunication provider
                        -   Same monthly fee with                                          in Italy
                            Free time (10000)
                        -   Same tariffs in weekdays,
                            weekend and holidays
                            with free time Omnitel

TIM Euro Professional   -   Monthly fee                 -    Target toward business
                        -   Mobile phone subsidied           customer
Omnitel Free Time       -   Same monthly fee with                                     -   Good customer service
                            Eurofamily (10000)                                            quality.
                        -   Monthly fee
                        -   Mobile phone subsidied
                        -   Same tariffs in weekdays,
                            weekend and holidays
                            with free time Omnitel


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 Strategic
Smart                                    X
Trendy                                   X
Cool                                     X
Efficient                                √
The Pioneer                              √
Service                                  √




 • There was 3 most strategic believable option to support LIBERO asthe new product fr
   that fit with the customer want :
 1. Efficient
 2. The Pioneer
 3. Services
Brands in Category          Key Customer Benefits        Brand Positioning Statement
TIM Euro Family                                                 TIM is a pioneer of celullar
TIM Euro Professional             Mobile phone subsidized     operator,and the celular market
                                  Lower tarrif per minutes                leader.
Omnitel Free Time
Omnitel Night/Day                                              OMNITEL is the best customer
                                                                services in celullar operator
                                                                         bussiness.
Omnitel Libero                     •Free activation cost,    LIBERO is the celullar operator for
                                     •freemonthly fee        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
   activation cost, free monthly fee, and efficient tarrif (because the customer just need t
   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
Meaningfulnes     • “LIBERO” means “Free” , because it is “free of taxes and
s                   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) expresse
   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 meani
   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.

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Omnitel Pronto Italia

  • 1. Omnitel Pronto Italia Syndicate 5 Agung Mahendra 29111324 Rangga Tri Raeros 29111314 Joseph Enrico 29111349 Reski Mapriharto 29111326 Gilang Surawijaya 29111350
  • 2. Category Analisis Worksheet Segment description • 3794000 subscriber, penetration 6,5%, subscriber growth 61 % (1995) • Cellular penetration was 7.5% by the end of the first quarter of 1996 Current and Emerging Trends • 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 Estimated Profit Potential of Trends • Outgoing call (13 minutes at peak, and 80 minutes at off peak) • = (Lit. 1595 x 13) + (Lit. 195 x 80) • = Lit. 36335 / month Trends Needs not being met • Free monthly fee • Payment base on the cellular phone use rate, • Free activation fee,
  • 3. 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
  • 4. Personal Users Prospects Rejector Brand Loyal 18-34 yo 25-34 yo Females, non Use mainly of peak More educated workig individuals, more employees and housewife Service sensitive 25-44 yo 25-44 yo More males, more Midclass self-employed Peak charge 25-34 yo 25-34 yo Younger profile, Higher social class more educated with small families Cost sensitive Almost 60% 25-54 yo Mid class, employees More professionals employees and retired people
  • 5. Personal Users Prospects Rejector Brand Loyal Service sensitive -9 to brand Peak charge -10 to brand Cost sensitive -13 in services
  • 6. 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 :
  • 7. Target Reason Primary Prospector Base on the conjoint data, the prospector Target 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 Personal User Based on the conjoint data, the personal Target 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 Rejector The rejector is the part of people who Target unpenetrated (92.5%) Most of the rejector concern to monthly chargeand activation cost.
  • 8. Target Audience Worksheet Demographics Psychographic Size of Market Distribution Media Reach s Points Primary 25-44 yo Unsatisfied by 50% Cellphone shopping TV, newspaper Target midclass telecom fixed center, Omnitel and magazine, and positive on Shop, join venture bilboard private operator with credit card Secondary Female 25% Cellphone shopping TV, newspaper Target More educated center, Omnitel and magazine, Employees and Shop, mall, event, bilboard house wife personal selling Retired people Teritary 25-34 yo Early adopters, 25% Cellphone shopping TV, newspaper Target almost 60 % willing to switch, center, Omnitel and magazine, employees mainly off peak Shop, join venture bilboard calls with credit card
  • 9. Competitive Analysis Top 5 Estimated Points of Perceived Pricing Value Core Brand Estimated Brands Sales Differentiation Quality Proposition Message Marketing Budget TIM Euro Target for Celullar 10000 of Pioneer in You have $12.5 million Family residence pioneer Monthly Fee GSM cellular include all subscribers Weekdays 1524 service in phone and TIM - 170 Italy & you are marketing market somebody budget Weekend & leader Holidays 170 in 24 hours TIM Euro Target toward 50000 of Professional business Monthly Fee customer Weekdays 412-663-412-256- 206 Saturday 412- 206 Holidays 206 in 24 hours Omnitel Libero : Lit Middle class Best No monthly fee New We listen to $25million 437268 customer customer 1595-195 entrant you High quality service telecomuni customer cation in service Italy that offer high quality service
  • 10. Points Differentiation Worksheet Brands Parity Features Meaningful of Points #1 reason people buy the DIfferentiation brand TIM Euro Family - Monthly fee - Target for residence - TIM is the first - Mobile phone subsidied subscribers telecomunication provider - Same monthly fee with in Italy Free time (10000) - Same tariffs in weekdays, weekend and holidays with free time Omnitel TIM Euro Professional - Monthly fee - Target toward business - Mobile phone subsidied customer Omnitel Free Time - Same monthly fee with - Good customer service Eurofamily (10000) quality. - Monthly fee - Mobile phone subsidied - Same tariffs in weekdays, weekend and holidays with free time Omnitel Omnitel Night/Day - Monthly fee - Mobile phone subsidied Omnitel Libero - Free Monthly fee - Not to have pay a monthly fee
  • 11. Brand Positioning Believable Options 3 Most Strategic Smart X Trendy X Cool X Efficient √ The Pioneer √ Service √ • There was 3 most strategic believable option to support LIBERO asthe new product fr that fit with the customer want : 1. Efficient 2. The Pioneer 3. Services
  • 12. Brands in Category Key Customer Benefits Brand Positioning Statement TIM Euro Family TIM is a pioneer of celullar TIM Euro Professional Mobile phone subsidized operator,and the celular market Lower tarrif per minutes leader. Omnitel Free Time Omnitel Night/Day OMNITEL is the best customer services in celullar operator bussiness. Omnitel Libero •Free activation cost, LIBERO is the celullar operator for •freemonthly fee 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 activation cost, free monthly fee, and efficient tarrif (because the customer just need t pay tarrif based on the use rate).
  • 13. 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 Meaningfulnes • “LIBERO” means “Free” , because it is “free of taxes and s 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
  • 14. 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) expresse 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 meani LIBERTE or LIBERTY, that mean freedom (express the product benefits).
  • 15. 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.