Omnitel Case Study Analysis Powerpoint

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Instructor Details

Erdem, Tulin

M W 2:00-3:00

Tisch 9-13


Course Meetings

MW, 9:30am to 10:45am

KMC 5-75

Final Exam:

Schedule exceptions
    Class will not meet on:
    Class will meet on:


Course Description and Learning Goals

This marketing elective focuses on the three major activities common to the marketing planning process across firms and industries: (1) analysis of market information, (2) development of brand and marketing strategy, (3) programming of the strategy and implementation of the marketing programs.  The unifying framework for these activities is the annual marketing plan.  Thus, the course attempts to simulate the product/brand/marketing manager’s job through the development and implementation of a marketing plan for a particular good or service.


As might be surmised from the variety of activities covered by the course, a successful marketing planning process requires a broad set of skills.  Thus, key concepts will be drawn from a variety of areas including marketing strategy, buyer behavior, economics, marketing research, statistics and econometrics.


A variety of teaching methods will be used during the course, particularly cases and lecture/ discussion.  The key feature of the course is a group project, which is the development of an actual marketing plan for a product selected by the students.  The course provides the generic background necessary for developing marketing plans; students tailor the course to their interests by their chosen project.  Thus, the course can be a consumer product, industrial product, service, or even not-for-profit course depending upon the project.


Course Pre-Requisites

Introduction to Marketing


Course Outline


 9/7                Introduction to the Course: Marketing Analysis, Planning, Strategy & Management

                     Read:  L&W, Ch. 1


Analysis of Market Information


9/12              Industry Analysis and Competitive Set Definition

                     Read:   L&W, Ch. 2, 3


9/14              Marketing Research to get Market Information


9/19              Customer Analysis  

                      Read:  L&W, Ch. 5


9/21              Case: Product Team Cialis: Getting Ready to Market


9/26              Customer Analysis II


9/28              Case: Omnitel Pronto Italia

                     ** Assignment 1 is due **       


10/3              Competitor Analysis

                     Read:  L&W, Ch. 4


10/5              Market Potential and Sales Forecasting

                     Read:  L&W, Ch. 6


10/12               Case: U.S. Retail Coffee Market A

                     ** Assignment 2 is due **


Developing Marketing Strategy


10/17            Marketing and Brand Strategy I

                     Read:  L&W, Ch. 7


10/19            Brand Equity I


10/24            Case:

                       Ontela PickDeck (A) and (B): Customer Segmentation, Targeting and Positioning

                     ** Assignment 3 is due **


10/26            Brand Equity II


10/31            Brand Equity Management and Brand Extensions

                     Case: Burberry


11/2              Guest Speaker I: Developing Marketing Strategy

                     Naomi Grabel, Carnegie Hall

                     Director, Marketing and Creative Services


Programming of the strategy and implementation of the marketing programs

11/7              Pricing & Price Promotions

                      Understanding and Measuring Customer Value

                     Case: Coca-Cola’s New Vending Machine      


11/9              Pricing & Price Promotions II


11/14            Case: Medicine Companies

                     ** Assignment 4 is due **


11/16            Advertising and Communications


11/21            Case: Molson Canadian- The Rant


11/23            Distribution Strategy: Designing and Managing Marketing Channels Case:  Hewlett-Packard Imaging Systems Division           

                                   ** Assignment 5 is due **


11/28            Integrated Marketing Communications

                     Background Case:  Cunard Line Ltd.:

                     Managing Integrated Marketing Communications


11/30            Guest Speaker II: Managing On-Line communications

                      Douglas Silverstein, AmEx


12/5              Planning for Global Marketing

                     Case: Samsung Electronics Company: Global Marketing


12/7              Marketing Plan Presentations


12/12            Marketing Plan Presentations


12/14            Course Summary

                        ** Marketing Plans are due**        


Required Course Materials

  1. Lehmann and Winer, Analysis of Marketing Planning, 2008, 7th Edition, McGrawHill-Irwin.
  2. A course reader with Cases.


Assessment Components

Marketing Plan (team project, in pairs)                                                   Due date

                        Presentation                                                10 %                12/7-12           

                     Written Report                                                30 %                12/14

Assignments (individually)                                                   Due date

            #1                                                          8  %                 9/28

            #2                                                          8  %               10/12

            #3                                                          8  %               10/24

            #4                                                          8  %               11/14

            #5                                                          8  %               11/23


Class Participation                                            20 %



At NYU Stern we seek to teach challenging courses that allow students to demonstrate their mastery of the subject matter.  In general, students in undergraduate core courses can expect a grading distribution where: 

  • 25-35% of students can expect to receive A’s for excellent work
  • 50-70% of students can expect to receive B’s for good or very good work
  • 5-15% of students can expect to receive C’s or less for adequate or below work 

Note that while the School uses these ranges  as a guide, the actual distribution for this course and your own grade will depend upon how well  you actually perform in this course.


Professional Responsibilities For This Course

 Course Format


The course uses a combination of lectures and cases. We will also have few guest speakers.


 Lectures will be used to introduce new concepts, frameworks and tools that are

important for conducting a thorough marketing analysis and developing marketing strategy and programs. The lectures will complement the text and will not attempt to cover all points raised in the reading. These lectures will be interactive rather than simply a monologue.


             Case discussions are a critical component of the learning process for this course.  Students should be prepared for case discussions whether or not it is a written assignment.  You will be evaluated on both the quantity and quality of your participation.  In addition, students can be expected to be “cold called” during a discussion.

             The case method is one of the most effective means of sharpening your decision-making abilities, requiring you to be an active participant in a marketing strategy decision.  The assigned cases are intended to give you practice in assembling data to support a decision.  Further, the case method provides a vehicle by which you can apply the theories, concepts, and analytical devices discussed in class or in the book.  Finally, the discussion forum provides an opportunity to argue your position and to learn from others by listening to their comments and criticisms.

             In selecting case materials, I have tried to choose cases which fit the pedagogical objectives of the course and which are also (hopefully) interesting to participants.  Some of the cases may appear to be far-removed from problems pertinent to your work experience, but in general, the lessons to be learned from the cases are universally relevant and transcend particular situations.

             During case discussions each person should be prepared to share his or her individual views with the class.  In these sessions, the instructor will act to facilitate discussion, not to provide recommendations for a particular course of action.  The direction and quality of the discussion is the collective responsibility of the group, not the sole responsibility of the instructor.

             It should be emphasized that the case method of learning does not provide an answer to the problem being addressed.  In most case discussions, several viable “answers” will be developed and supported by various participants within the total group.  It is usually the case that a single “best” course of action is not obvious at the time the decision has to be made; if that situation was common, business decision-making would be easier than it is!  At the same time, some courses of action are better supported by the case facts than others.  In addition, while what actually happened is sometimes known, in no way should this be interpreted as the correct or incorrect solution.  What is important is to develop a framework that will lead you to recognize the best options available.

 Some students have found the following process helpful as a guide to case preparation:


  1. Skim through the case to understand the basic setting and framework. This will help you to assimilate the facts of the case when you read it.

  2. Review all tables and figures.
  3. Read the case study questions provided in the detailed outline at the end of this syllabus. Use these questions as a guide to some of the key issues in the case. Remember, it’s still up to you to decide what is important based on the evidence in each case.
  4. Now read the case and begin to analyze it qualitatively and quantitatively. What are the key issues? What do you recommend? What alternatives did you consider? Why did you select your preferred course of action?
  5. Now with a reasonably good understanding of the situation, you should reread the case to incorporate important details that will impact your analysis.

In preparing the cases, don't look for a single answer. Each case will raise a number of issues that need to be evaluated. A good recommendation is one that is based on solid analysis and considers multiple courses of action.

 Preparation questions for case discussions in class are provided in Appendix A.

 Course Requirements

 Class Participation

             You must be prepared to discuss all assigned readings and cases. Your comments should reflect a depth of understanding indicative of thorough analysis. You should be prepared to articulate and defend your position when called on to do so. Active participation of all students is required but quality and frequency of comments is more important than duration of each comment. The ability to speak comfortably to a group is a vital business skill. If you are anxious about public speaking, the only way to get better is to practice. The best way to reduce your anxiety is to be thoroughly prepared. 

             In order to encourage universal participation and preparation, I WILL COLD CALL, especially during cases.  Indeed, I will come into class for each case discussion with five randomly generated names.  At some point during the discussion (including the beginning), I will call on each of these five people.  Again, the objective is to come as close as possible to universal participation and participation.

             Class discussion should encourage the free and open exchange of ideas. If you want to challenge what I, or another student, have said, do so. Constructive criticism is always welcome and is an important part of the Stern MBA experience. Do not be upset if something you say is challenged - we learn most when we have to defend our positions.

             However, putting down legitimate comments (those not intended to be humorous) is not acceptable. Everyone's input, if not repetitious, must be considered valuable and encouraged. Feel free to question or disagree with other students, however, such disagreement must be based on the idea and not the person. Respect for your fellow students is the sine qua non of great discussions and great learning experiences.

             It is important for your classmates, and me, to know who you are.  Please help out by using your desk name card during every class session. In addition, we will have assigned seats and use a seating chart.  Please come into the third class session (September 9) with an eye towards choosing a seat that you will comfortable in for the duration of the course. 

             At the end of the semester, the teaching fellow working with your section and I will consider the following elements in evaluating your classroom contributions:

  1. Are you a good listener?
  2. Do you contribute to the learning environment by sharing your relevant business 
  3. experiences and those you read about?
  4. Do your comments show evidence of thorough analysis?
  5. Do you ask constructive questions of other students that help to deepen everyone's
  6. understanding?
  7. Do you distinguish between different kinds of data (i.e., facts and opinions)?
  8. Are you willing to share ideas and information in a collegial fashion?
  9. Are you willing to test new ideas, or are all comments "safe" (e.g., a repetition of the
  10. case facts without new insights)?
  11. Are you willing to interact with other class members to help refine ideas?
  12. Do your comments build on earlier comments to advance the discussion or are you
  13. merely repeating earlier comments or raising points that do not fit into the current discussion?
  14. Do your comments incorporate concepts presented in lectures, readings and earlier
  15. cases?
  16. Do you make your points succinctly?


            There will be five written assignments in this course. Questions are based on the following five cases that we will cover in the class: Omnitel, US Coffee Market A, Ontela, Medicine Companies and HP.  Questions for these assignments can be found in the Appendix.

            These written assignments should not exceed four pages. Up to three pages of supporting material (tables, figures, graphs) may be attached. This material should be referenced in the text of the write-up. Professional quality writing and presentation are expected.Write-ups must be double-spaced, in 12-point font with 1” margins.

            Your answers and recommendations should be based on quantitative and qualitative analysis of case data. Your analysis should anticipate potential objections to your recommendations and illustrate its superiority over other alternatives.  It should be analytic and deliberative in tone.  The most persuasive documents are the ones that debate more than advocate.  After all, if you do not look at all alternatives, how do you know that you have chosen the best one? In answering the case questions, do not describe the case, but focus on the following three factors: 1) careful analysis of the situation, 2) description of your decisions or recommendations; 3) supporting logic and analyses. Assignments will be described in more detail as we get closer to the due date. Note that these assignments require data analysis as well as creativity/judgment.

            The assignments are due in class on the date the case is discussed.  Students are not only permitted to discuss the case with other members of the class, they are encouraged to do so. 


The Major Project: Marketing Plan

            The major project in this class will be the systematic development of an annual marketing plan for a good or service.  This will be a team project (in pairs) The final project is an attempt to apply what you have learned in the course to a product or service of your choosing. The marketing plan should not exceed 20 double-spaced pages. Supporting material can put in appendices. Each marketing plan should have a title page, an executive summary, a situation analysis section (industry analysis, customer analysis, competitor set definition, competitor analysis, strengths, weaknesses, opportunities and threats (SWOT)), a section on the development of marketing and brand strategy (objectives, segmentation, targeting, positioning, brand equity) and a section on marketing programs (pricing and promotions, communications, distribution). The marketing plans should have also a proposed marketing budget and a summary of contingency plans. More details will be provided in class.

            You will also make a PowerPoint presentation about your proposed marketing plan. The presentation time will be approximately 15 minutes and 5 minutes will be set aside for Q&A.


Stern Policies



  1. You should attend all class sessions and complete all assigned readings before each class. You should minimize disturbances during class, i.e., talking, arriving late, leaving early, etc.
  2. Students are expected to adhere to the Stern School’s Honor Code, “I will not lie, cheat or steal to gain an academic advantage, or tolerate those who do.”
  3. No extra credit will be given in this course. Please see me right away if you are concerned about your performance in the class.
  4. Deviations from the syllabus may be necessary.
  5. Out of respect for the other students in your class, it is important for you to focus your full attention on the class, for the entire class period. Most students observe proper decorum, but it takes only one person’s behavior to distract the entire class. Students have complained to the school about others who act in a distracting manner. Please adhere to the following rules:
  6. Arrive to class on time.
  7. Once you have arrived, you should leave the classroom only if absolutely necessary. Leaving to make or take phone calls, to meet with classmates, or to go to an interview, is not considered appropriate behavior.
  8. If you know in advance that you will miss a class, please let the teaching fellow know in advance.
  9. Laptops act as a powerful distraction. Use of laptops for non-class purposes during class time has been a particular source of student complaints at Stern. Therefore the Stern School administration has established the default policy of not allowing laptops in class.  
  10. Turn off your cell phone and any other communications device.




Academic Integrity

Integrity is critical to the learning process and to all that we do here at NYU Stern. As members of our community, all students agree to abide by the NYU Stern Student Code of Conduct, which includes a commitment to:

  • Exercise integrity in all aspects of one's academic work including, but not limited to, the preparation and completion of exams, papers and all other course requirements by not engaging in any method or means that provides an unfair advantage.
  • Clearly acknowledge the work and efforts of others when submitting written work as one’s own. Ideas, data, direct quotations (which should be designated with quotation marks), paraphrasing, creative expression, or any other incorporation of the work of others should be fully referenced. 
  • Refrain from behaving in ways that knowingly support, assist, or in any way attempt to enable another person to engage in any violation of the Code of Conduct. Our support also includes reporting any observed violations of this Code of Conduct or other School and University policies that are deemed to adversely affect the NYU Stern community.

The entire Stern Student Code of Conduct applies to all students enrolled in Stern courses and can be found here:

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To help ensure the integrity of our learning community, prose assignments you submit to Blackboard will be submitted to Turnitin.  Turnitin will compare your submission to a database of prior submissions to Turnitin, current and archived Web pages, periodicals, journals, and publications.  Additionally, your document will become part of the Turnitin database.


Recording of Classes

Your class may be recorded for educational purposes


Students with Disabilities

If you have a qualified disability and will require academic accommodation of any kind during this course, you must notify me at the beginning of the course and provide a letter from the Moses Center for Students with Disabilities (CSD, 998-4980, verifying your registration and outlining the accommodations they recommend.  If you will need to take an exam at the CSD, you must submit a completed Exam Accommodations Form to them at least one week prior to the scheduled exam time to be guaranteed accommodation.






Telecom Italia Mobile (TIM) had a monopoly over the Italian Communications Market. It generated 97%

of Italy‟s 7.5% market penetration, also until Omnitel‟s entrance into the market because of the lack of thecompetition, TIM didn‟t incur the huge marketing costs. TIM‟s marketing strategy was primarily directed towards

the uppers echelons of Italian society. Omnitel entered the market in Feb 1995 but they could start the commercialservices in December 1995 with network coverage of 40% of the Italian territory. Ominitel thought of its superiorcustomer care as its competitive advantage over TIM, however they could only acquire 1,80,000 subscribers by May1996. Omnitel was looking for methods to differentiate itself from TIM but at the same time avoiding a price war.

Problem Identification

The problem was twofold, that of building Omnitel‟s market share while avoiding a price war with TIM, and

differentiating brand Omnitel from brand TIM.

5 C Analysis

Company Background:

Omnitel was a

ble to obtain GSM license after liberalization and paid Lit.750 bn in Dec „94 to become Italy‟s

second GSM operator and launched its commercial service in Dec. 95.

They started with a network coverage of 40% of Italian territory.

Market share was 4% of the total Italian telecom market.

Initially they offered plans similar to TIM but prime focus was on its high-quality customer service, which

led to „happy‟ customers and low churn rates.

Financial strength of Omnitel was not as strong as their competitor i.e TIL, hence they avoided getting into aprice war situation.

Competitor Analysis:

The major competitor was Telecom Italia Mobile (TIM) formed in July 1995 after divested from TelecomItalia and was listed separately on Italian stock exchange.

The customer base was over 4 million by the end of first quarter of 1986 and had strong roots in ItalianCellular market.

They offered two types of tariffs:


Euro Family


Euro Professional

They enjoyed monopoly over Italian telecommunication market until Omnitel‟s

recent entrance; themarketing costs had been lower than its European counterparts.

The distribution channel of TIM was very strong as it had 1,500 exclusive dealers, 20 TIM- owned shopsand 150 Telecom Italia stores, but after the entrance of Omnitel they became more aggressive.

Its marketing strategy was to cater primarily to the high end segment of the Italian society touting cellularphone as a status symbol.


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