Telecommunications

Challenges for the industry

For years, only a few traditional German companies dominated this industry. In a market that was comparable to a monopoly market, companies had a lot of leeway in developing their product and price policies. In recent years, however, the industry has undergone a radical change. Since the trend of economic activity in East Germany has decreased, the market has been suffering from overcapacities. In addition, foreign competitors have been offering their products on the German market, possibly due to the unified European market and guidelines.

At the same time, the distribution structures for construction products are changing dramatically. At the retail level, a permanent concentration process has been noticeable for years. This process has led to a shake up in the balance of power in distribution. Furthermore, manufacturers and retailers are having to confront the challenges posed by e-commerce. All this has led to the reorganization of distribution and increasing competitive pressure which focuses attention on customer-oriented pricing and product policy.

Wireline	Wireless	Internet/ Content
Enhanced connections/ accelerated penetration of DSL	Mobile broadband services promising willingness-to-pay for 3G	"Real" broadband content: Breaking the "creative block"
Traffic generation through media substitution	WLAN-Business-Model	Paid content: How a consumer becomes a paying customer
Protection of traditional wireline traffic/ Protection of investment	Customer retention for GSM and migration towards 3G	Digital Rights Management: Mastering the transition process: physical goods to digitalized products
Exploiting all revenue potentials (Fine-tuning, optimization)

Consulting services

Simon-Kucher combines industry know-how with a deep knowledge of methods and the ability to solve problems. As a consulting firm leading the world in the areas of price and revenue management, we focus on the market perspective. Therefore, our services include all aspects of a market-oriented strategy like:

• Product development, marketing and revenue forecasts
• Innovative price structures and optimal price levels
• Market-oriented and implementable customer segmentation
• Development and optimization of segment-specific prices, tariffs, and products
• Development of business models/revenue-sharing models
• Development of optimal market launch strategies
• Development of effective customer loyalty systems
• Development of effective incentive systems for sales reps/channels

Our project results are well known for precise recommendations, creative concepts and pragmatic solutions. Our approach ensures the ability to quickly implement.

Project examples in 2002

The right marketing decisions must be made in order to operate successfully in this highly competitive market. Perceived customer value plays an even greater role here leading to many important questions. Some of the key issues to consider will be:

Wireline	Wireless	Internet/ Content
Product strategy SME market	Need-based segmentation for 3G services/ applications	International benchmarking paid content products
IP-VPN Product development/ pricing/ revenue forecast	Product and service strategy: Drawing a roadmap for B2C	Development of paid content models
Price/ product optimization for enhanced connections	Development of segment-specific marketing strategies B2C	Audit: Pricing structure for internet B2B services

• Designing and positioning of a brand
• Creation and positioning of a second brand or product line
• Revenue management
• Growth strategies, e.g. by developing new business fields
• Identification of optimal country-specific prices and a new pricing corridor
• Analysis and reorganization of distribution channels
• Optimization of discount and condition systems
• Investigation of customer requirements at different levels of the distribution chain
• Potential for improvement in customer relations / customer satisfaction / customer loyalty

For questions and further information mail to: telco@simon-kucher.com

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