Case | HBS Case Collection | August 2000 (Revised September 2005)

Omnitel Pronto Italia

by Rajiv Lal, Carin-Isabel Knoop and Suma Raju

Abstract

Describes the situation faced by Omnitel soon after launching its mobile telecommunication services in Italy in December 1995. Competing against the Italian monopoly, TIM, Omnitel had positioned its services to be better on the quality dimension. However, sales were significantly below expectations. In order to develop a new strategy, Omnitel conducted extensive marketing research. This research identified the varying needs of different customer segments. Omnitel now had to decide whether to attack a new segment with a new service plan, "LIBERO," to improve on past performance.

Keywords: Customer Satisfaction; Marketing Channels; Marketing Strategy; Product Positioning; Market Entry and Exit; Product Development; Sales; Competition; Segmentation; Value Creation; Telecommunications Industry; Italy;

Citation:

Lal, Rajiv, Carin-Isabel Knoop, and Suma Raju. "Omnitel Pronto Italia." Harvard Business School Case 501-002, August 2000. (Revised September 2005.)