In 1996, cellular penetration in Italy had reached 7.5% with Omnitel aiming to gain market share as a new entrant. Analysis of customer segments showed that prospects and current users valued service quality and cost, with prospects having negative perceptions of brands focused on peak pricing. Omnitel's Libero plan targeted prospects by offering no monthly fee and usage-based pricing to meet needs around service, cost, and flexibility.

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.