Omnitel Pronto Italia
Omnitel Pronto Italia
Omnitel Pronto Italia
1. Teaching Objectives
A. To illustrate an example of a market-driven process for creating value and identify the marketing challenges in this context. B. To provide an opportunity to analyze customer preferences using conjoint analysis. C. To highlight the importance of understanding and responding to customer needs.
2. Discussion Questions
A. What was Omnitels competitive advantage when the service was launched in December 1995? B. Why did the launch not perform to expectations? C. What are the economics of LIBERO? D. Why is the churn rate so high for many European countries? E. Do you expect the churn rate to increase or decrease with the launch of LIBERO? F. What do you learn from customer research? What do you learn from the results of the Conjoint Analysis presented in Exhibits 5 to 8? G. Will LIBERO lead to a price war? If yes, what could Omnitel do to avoid one? H. If you were Fabrizio Bono, what changes would you make to LIBERO and why?
3. Content of Analysis
A. B. C. D. E. F. Omnitels Launch Strategy Conjoint Analysis LIBERO Possible Modifications to LIBERO Churn Rate Analysis Price War Analysis