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Sat bandwidth pricing_case_1.4


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inTouch worked with a large American satellite communications business to deliver a ‘long term contract’ pricing solution. The client’s requirement was to devise a pricing tool which sufficiently discriminated between different customer types, modeled dominant customer / customer segment characteristics, factored in market dynamics of demand and supply at a given ‘point in time’ and marked up / down contract prices based on market and internal attributes. The client shared 20 year dataset that included 5-year historicals and 15-year forward contracts in all.

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Sat bandwidth pricing_case_1.4

  1. 1. Satellite Bandwidth pricing optimizationcase: decision modeling approach used for a large US based satellite company
  2. 2.  Some queries –  Does the existing pricing policy sufficiently discriminate between different customer types [segments, new contracts, renewals]?  Do they factor in market dynamics such as demand and supply at a given ‘point in time’? ▪ by band (Ku/C) ▪ by protection level ▪ by neighborhood, coverage and orbital location
  3. 3. h ot s re en sc p leSam What contracts and for what term should be priced at premiums and what needs to be discounted…
  4. 4. h ot s re en sc p le …What is the effect ofCompetitors’ Utilization? Sam
  5. 5.  Pricing decision support helped client gain over $100MM in potential revenue opportunities Client’s sales staff able to effectively discriminate between potential mark-up / mark- down opportunities and arrive at precise price points to maximize revenue Sales staff to take advantage of supply-demand dynamics in the marketplace and negotiate accordingly
  6. 6. PLEASE DIRECT QUERIES TO: Arun Prabhu inTouch analytics private limited Email: Phone: +91-96202-7195022-Feb-2011 © 2011 inTouch analytics or its affiliates. All rights reserved For internal use by RIL only to evaluate inTouch as analytics partner