The document discusses Tele2's commercial strategy. It outlines positioning based on quality and price over time, with different strategies like defender, challenger, and entry employed in different markets. Three brand clusters are identified. The strategy focuses on increasing customer lifetime value and reducing churn through improving customer loyalty and service. Churn reduction of 1% could result in SEK 4 billion additional revenue in 5 years. The overarching strategy is to never compromise on providing the best deal while maintaining a focus on perceived price leadership and maximizing customer lifetime value.
2. TELE2 POSITIONING
HIGH QUALITY
HIGH PRICE
LOW PRICE
LOW QUALITY
2 Name Namesson
3. POSITIONING PER MARKET
OVER TIME
Defender strategy:
Quality 1:
Coverage
Price Leaders Entry strategy:
Challenger strategy:
Move perceptions of
Coverage and Innovation
Quality 2:
Innovation
3 Name Namesson
4. THREE BRAND CLUSTERS
Sweden
1)
Holland
Norway
2) Russia
Croatia
Estonia
3) Latvia
Lithuania
4 Name Namesson
7. CUSTOMER SERVICE
High ranked customer service experience
Secure competitive customer service cost
Generate revenue on customer service contacts
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8. INCREASED FOCUS ON VALUE
OF CHURN
Churn reduction by 1 percentage point will in 5 years result in approx. SEK 4 000 million revenue
increase
MID TERM (2010)
SHORT TERM (2009)
UP TO NOW Low value of churn Increase customer
in money loyalty
TELE2
GOAL Low churn
CUSTOMER
LOYALTY
DPMT VALUE
REACTIVE
FOCUS
CAMPAIGNS
Anticipate customer
Capture value before needs to make them
APPLIED Launch activities when actual churn happens more loyal
STRATEGY problems arise
8 Name Namesson
9. SUMMARY
We will never compromise on the Best Deal
Main component is perceived price leadership
Focus on customer lifetime value
9 Name Namesson