The Economics of CRM: IUSACELL case
Analyze IUSACELL's marketing performance over the past two years.
â–¶ STP Analysis
Region 5, 6, 7, 9
Principal Use (Business or Personal)
A ~ C (Refer to Exhibit 6)
Positioning - Full Service communications from a beginning in cellular Business â–¶ 4P implementation Strategy
Product â€“ Basic Service, Value-added Service, Roaming, Accessories ï¬
Price â€“ Three Packages
Placementâ€“ Distribution Channel (Customer Service Centers, Corporate Representatives, Distributor) ï¬
Promotion â€“ â€˜Lease program' for hand-held phones (NP1/month)
â–¶ Performance Analysis
Average Monthly Revenue/subscriber
During the year 1991 and 1992, IUSACELL implemented strategy like value-added service to differentiate themselves, resulting an increment of Revenue and Net Income. In the year 1993, due to high acquisition costs and losing valuable customers, Net income and Average Monthly Revenue/subscriber have been dropped. ï¬
Non Financial Performance â€“ Growth(# of Subscribers), Penetration %, Churn Rate
(end of period)
In order to increase No. of subscriber, ISUACELL implemented a lease program on a long-term basis for hand-held phones (NP1/month). ïƒ¨
From year 1991 to 1993, although Growth (# of Subscribers) and % of Penetration have increased, the market share was lost by increasing churn rate. ïƒ¨ In order to retain and develop current Customers and grow in continuous revenue, Customer service initiatives are positively necessary.
Evaluate IUSACELL's customer service initiatives and their...
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