Product details

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Case
-
Reference no. P507-134-1
Portuguese language
Subject category: Marketing
Published in: 2007
Length: 17 pages
Data source: Field research

Abstract

This is a Portuguese translation of the case ''507-134-1''. TMN, losing market quota to Telecel, launched MIMO after the summer of 1995. This was a highly innovative product, both in Portugal as well as in Europe. Basically, it wanted to make the mobile telephone popular. At that time, its use was almost exclusive to companies or the more moneyed classes of society. It was a cellular telephone like the others, but cheaper and above all, it contained a ready-to-talk card, rechargeable at any ATM (automated teller machine). It had neither contract nor subscription. This launch marked a turn-about by TMN in the market, until then only targeting company directors, while Telecel, with its own shops, went after a market of well-off people whose telephones would not be paid for by firms. With this move, TMN was trying to overtake Telecel in the same market segment, going after the middle classes. Romao Mateus was the leader of the change process. He was not interested in a head-to-head situation with Telecel in the same segments, but rather to seek other segments and take the lead in those. The market was studied, there was a confirmed interest on the part of private clients with a mid-range income and an offer to satisfy that interest was created with ease, price, no attachments, and no complementary services. The MIMO concept took advantage of the existence of the ATM network and, furthermore, it eliminated the risk of collecting debts. On the other side, clients could have good control over their costs. The positioning had to reflect the modernity, the conviviality, the ease of use and of loading, the simple tariffs and the ease of acquisition. The initial communication campaign had to create empathy, to be didactic but simple, integrated but with great impact. Sales in 1995 exceeded TMN''s greatest expectations.
Location:
Industry:
Other setting(s):
1995

About

Abstract

This is a Portuguese translation of the case ''507-134-1''. TMN, losing market quota to Telecel, launched MIMO after the summer of 1995. This was a highly innovative product, both in Portugal as well as in Europe. Basically, it wanted to make the mobile telephone popular. At that time, its use was almost exclusive to companies or the more moneyed classes of society. It was a cellular telephone like the others, but cheaper and above all, it contained a ready-to-talk card, rechargeable at any ATM (automated teller machine). It had neither contract nor subscription. This launch marked a turn-about by TMN in the market, until then only targeting company directors, while Telecel, with its own shops, went after a market of well-off people whose telephones would not be paid for by firms. With this move, TMN was trying to overtake Telecel in the same market segment, going after the middle classes. Romao Mateus was the leader of the change process. He was not interested in a head-to-head situation with Telecel in the same segments, but rather to seek other segments and take the lead in those. The market was studied, there was a confirmed interest on the part of private clients with a mid-range income and an offer to satisfy that interest was created with ease, price, no attachments, and no complementary services. The MIMO concept took advantage of the existence of the ATM network and, furthermore, it eliminated the risk of collecting debts. On the other side, clients could have good control over their costs. The positioning had to reflect the modernity, the conviviality, the ease of use and of loading, the simple tariffs and the ease of acquisition. The initial communication campaign had to create empathy, to be didactic but simple, integrated but with great impact. Sales in 1995 exceeded TMN''s greatest expectations.

Settings

Location:
Industry:
Other setting(s):
1995

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