Omnitel

Survey gives all the indications in favour of Omnitel as it scores highon customer service and the service ranked high amongst customerpreferences. The cost sensitive segment comprising 30% of mobilephone users wished to have a mobile phone that was always underreach and this matches with Omnitel’s motto of making mobilephones “a primary mode of communication”. The fixed costs(monthly fees) are dreaded more than one time cost of mobilephone. So, the monthly fee waiver will be preferred over subsidy onmobile cost.
Decision
: Basically, the need is to increase the market share &improve the average talktime which can be done by provoking theimpulse call making of the customers. This shows the behaviouralsegmentation of the consumers where 48% of the consumers wereBrand Loyal & Service oriented & could see their benefits easily.In our opinion, LIBERO should get company’s nod for going aheadwith the plans. On further deliberation though, there can be a few strategicchanges that can be made to the plan so that it appears attractiveto the CEO of the company.
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One such idea can be to calculate monthly rent as per usage(including both incoming and outgoing calls). What this will dois give an impression to the user that he/she is being chargedonly for the usage.
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Based on the average usage details obtained, a suitableuniform rate for both incoming and outgoing calls can beworked out. During the business hours the usage will increaseand increased rates during off-peak hours will make up for thereduced usage.In the end, if we look at the case in retrospect also, Indian marketseems to have emerged only due to the lower operating costs.Mobile telephony went to an explosive growth after incoming callswere made free. And the apprehension that revenues