Our client is one of the major operators on the Nordic telecom market, a market with largely commoditized products and services resulting in pressure on margins. This has led our client to find new ways to differentiate itself from the competition. Differ supported the company with developing a new offering for the B2C market including a launch campaign.
The telecom market is constantly evolving and has during the last years seen a trend of commoditization and price pressure. This has put pressure on the telecom operators to keep the margins at an acceptable level, at the same time as the possibilities to differentiate the offers and positioning among competitors are decreasing.
To make matters worse, the only brands showing a clear growth trend, are the price pressuring no-thrills brands.
The client had identified a strategic position to claim in order to differentiate against the main competition but needed assistance with optimizing the offer design. The challenge was to ensure including the main strategic product components creating the most customer value, while cutting out the costly parts with less significant value for the customer.
Another challenge was to determine if the upside of the project was large enough to invest a major share of the IT resources in.
The final challenge was how the product should be priced. Would the most profitable offer be to include the service in the base offer and thus increase the sales volume due to a more competitive offer. Or should the increased value of the offer motivate a higher retail price?