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Proposed Product Strategy Prepaid Mobile

Deepak K. Gupta
Deepak K. Gupta

This document proposes a new prepaid mobile product strategy to simplify the customer experience. It suggests consolidating multiple recharge options into single "all-in-one" packs that include voice calls, SMS, and data. Two options are presented: Option 1 includes local/STD voice and SMS along with 2G/3G data, while Option 2 adds roaming benefits. Various pack denominations like daily, weekly and monthly are recommended to meet different customer needs. The strategy aims to reduce confusion and improve convenience for customers and retailers.

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PROPOSED PRODUCT STRATEGY PREPAID MOBILE Deepak Kumar Gupta 19.02.2015
PREPAID CUSTOMER PAIN POINTS I want a Simple & Affordable product which offers Local & STD calls Local & STD SMS Data (Fast & affordable) Easily available I want CONVENIENCE What I get is a product which I cant remember Which top up/rate cutter? Which SMS pack ? Which data pack ? I spend approx Rs. XXX /mnth on my mobile for voice calls, SMS and Databut I dont know my call charges What I do is. I go to the retailer & ask him to recharge my phone to get local/std calls@ lowest rate & SMS pack , Data etc Recharge with Top up or FTT Recharge with Rate cutter to lower the tariff Add a SMS Pack Add a data pack Add a roaming pack 25 to 50 Voice, Onnet, Offnet, Local, STD, SMS Ratecutters 8 to 15 Plan Vouchers, 12 to 20 Top ups to 4 to 10 Combo Vouchers Choice of Confusion 10 to 25 Data packs Approx 4 Roaming packs 4 ISD packsAdd a ISD Pack What a customer wants? What he gets? Customer wants to make his life simpler and depends on retailer to resolve
WHAT A RETAILER DOES? Time nahi hai..jo simple hai who bech deta hoon I dont know which is the best voucher. Sir Airtel /Vodafone/Idea le lo Sir A4 sheeter / ready reckoner dekh kar bata dou kaun sa recharge chahiye Vouchers Handsets SUK Dongle Router Airtel Idea Vodafone Aircel Uninor Tata CAF E-recharge 6 to 8 operators 30 products per operator 5 handset distributors CAF schemes E-recharge schemes Paper Recharge schemes A single brain to remember all Deepak Kumar Gupta
BREAK THE CLUTTERDISRUPT THE MARKET & BRING SIMPLICITY Objective Introduce a product which is SIMPLE & EASY to understand , Easy to Buy, Easy to Sell Helps Churning High Spending customers from competition USP All in One convenience pack No multiple recharges required for Local/STD, Rate cutters, SMS pack, data pack No Differentiation between 2G &3G data No need to remember Roaming tariff No ISD pack required for Lowering the ISD rate Easy to rememberwhile buying or selling Feeling of Abundance Peace of Mind Buy as per your budget or money in the pocket. Only 3 Denominations covering all kind of customers needs Daily / Small Weekly / Medium Monthly / Large Deepak Kumar Gupta
PROPOSED PRODUCT OPTIONS Deepak Kumar Gupta Option 1 Option 2 Includes Voice (Local/STD), SMS (Local/STD), Data (2G/3G) Includes Voice (Local/STD/Roaming), SMS (Local/STD), Data (2G/3G) Customer is allowed to recharge as many times he wants
PROPOSED PRODUCT OPTION 1 One Recharge for Voice, Data, SMS Voice - Local/STD SMS Local/STD Data 2G/3G Product Variants Daily Weekly Economy Large Monthly Economy Large Business Rules Usage with in the home circle Free SMS not allowed during roaming Recharge any other top up to make ISD calls as per tariff of ISD Rs. 18 pack and make calls while roaming on other networks 2G/3G data combined usage Assumptions Pulse @ per second. RPM doesnt include ST, and other levies RPM maintained at healthy levels Deepak Kumar Gupta
PROPOSED PRODUCT OPTION 2 One Recharge for Voice - Local/STD/Roaming SMS Local/STD/Roaming Data 2G/3G Free I/C while roaming on home n/w Product Variants Daily One denomination Weekly Economy Large Monthly Economy Large Business Rules Calls charges applicable for Home network as well as roaming network . While roaming debit of Voice minutes @ double rate i.e debit of 2 mins from free mins instead of 1 min. Roaming Free SMS allowed on home network Assumptions Pulse @ per second. 5% roaming usage All tariff Voice/SMS/Data assumed at higher rate incl roaming usage RPM maintained at healthy levels Deepak Kumar Gupta
OPTION COMPARISON RPM/ ARPU maintained at healthy levels. No differentiation in Voice Tariff, SMS tariff, Data tariff (2G/3G) Expected ARPU (in Rs.) to be compared vs only REC customers Daily: 10 / 5 days Weekly 2.5 weeks Monthly Full month Products targeting to ensure high REC base. Recommendation Recommended option 1 however if basis actual data simulation if option 2 can be improved with more voice minutes then Launch option 2 Launch only one weekly & monthly variant along with Daily variant Option Summary Expected ARPU in Rs. Deepak Kumar Gupta
OTHER BUSINESS RULES & TECHNICAL CONFIGURATION Business Rules Customer is allowed to recharge as many times he wants Free unutilized SMS & Data will not be carried forward and will be forfeited on the FIFO basis Migration allowed from any Service Class excluding CUG service classes. Roaming Rates for all other networks as per standard charges. For ISD and Roaming calls recharge with any other topup. (cant be eliminated due to higher ISD charges and non uniform home network) Technical Configuration Voice + SMS + Data benefits to be given to the customer at the same time. In case of technical incapability, the addition of SMS & data pack to be done in batches every 15 mins through batch file uploads Product availability Paper for Daily & Weekly products. Monthly Version to be available on E-Recharge USSD/SMS menu All variants Online recharge All variants Deepak Kumar Gupta
WAY FORWARD Proposal Evaluation Price points to be adjusted circle-wise basis the possible migration impact and base distribution. Communication Mass Media Launch across all circles using Electronic, Print, and BTL Additional Proposal - For increasing VLR Make Browsing on Facebook and Whatsapp Free with 3G for all customers Approx data usage 200 Mb (for browsing only) Cost of 200 MB ~ Rs. 40 @ rack rate This cost to be recovered by lowering the discounts given on retention Deepak Kumar Gupta
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Proposed Product Strategy Prepaid Mobile

  • 1. PROPOSED PRODUCT STRATEGY PREPAID MOBILE Deepak Kumar Gupta 19.02.2015
  • 2. PREPAID CUSTOMER PAIN POINTS I want a Simple & Affordable product which offers Local & STD calls Local & STD SMS Data (Fast & affordable) Easily available I want CONVENIENCE What I get is a product which I cant remember Which top up/rate cutter? Which SMS pack ? Which data pack ? I spend approx Rs. XXX /mnth on my mobile for voice calls, SMS and Databut I dont know my call charges What I do is. I go to the retailer & ask him to recharge my phone to get local/std calls@ lowest rate & SMS pack , Data etc Recharge with Top up or FTT Recharge with Rate cutter to lower the tariff Add a SMS Pack Add a data pack Add a roaming pack 25 to 50 Voice, Onnet, Offnet, Local, STD, SMS Ratecutters 8 to 15 Plan Vouchers, 12 to 20 Top ups to 4 to 10 Combo Vouchers Choice of Confusion 10 to 25 Data packs Approx 4 Roaming packs 4 ISD packsAdd a ISD Pack What a customer wants? What he gets? Customer wants to make his life simpler and depends on retailer to resolve
  • 3. WHAT A RETAILER DOES? Time nahi hai..jo simple hai who bech deta hoon I dont know which is the best voucher. Sir Airtel /Vodafone/Idea le lo Sir A4 sheeter / ready reckoner dekh kar bata dou kaun sa recharge chahiye Vouchers Handsets SUK Dongle Router Airtel Idea Vodafone Aircel Uninor Tata CAF E-recharge 6 to 8 operators 30 products per operator 5 handset distributors CAF schemes E-recharge schemes Paper Recharge schemes A single brain to remember all Deepak Kumar Gupta
  • 4. BREAK THE CLUTTERDISRUPT THE MARKET & BRING SIMPLICITY Objective Introduce a product which is SIMPLE & EASY to understand , Easy to Buy, Easy to Sell Helps Churning High Spending customers from competition USP All in One convenience pack No multiple recharges required for Local/STD, Rate cutters, SMS pack, data pack No Differentiation between 2G &3G data No need to remember Roaming tariff No ISD pack required for Lowering the ISD rate Easy to rememberwhile buying or selling Feeling of Abundance Peace of Mind Buy as per your budget or money in the pocket. Only 3 Denominations covering all kind of customers needs Daily / Small Weekly / Medium Monthly / Large Deepak Kumar Gupta
  • 5. PROPOSED PRODUCT OPTIONS Deepak Kumar Gupta Option 1 Option 2 Includes Voice (Local/STD), SMS (Local/STD), Data (2G/3G) Includes Voice (Local/STD/Roaming), SMS (Local/STD), Data (2G/3G) Customer is allowed to recharge as many times he wants
  • 6. PROPOSED PRODUCT OPTION 1 One Recharge for Voice, Data, SMS Voice - Local/STD SMS Local/STD Data 2G/3G Product Variants Daily Weekly Economy Large Monthly Economy Large Business Rules Usage with in the home circle Free SMS not allowed during roaming Recharge any other top up to make ISD calls as per tariff of ISD Rs. 18 pack and make calls while roaming on other networks 2G/3G data combined usage Assumptions Pulse @ per second. RPM doesnt include ST, and other levies RPM maintained at healthy levels Deepak Kumar Gupta
  • 7. PROPOSED PRODUCT OPTION 2 One Recharge for Voice - Local/STD/Roaming SMS Local/STD/Roaming Data 2G/3G Free I/C while roaming on home n/w Product Variants Daily One denomination Weekly Economy Large Monthly Economy Large Business Rules Calls charges applicable for Home network as well as roaming network . While roaming debit of Voice minutes @ double rate i.e debit of 2 mins from free mins instead of 1 min. Roaming Free SMS allowed on home network Assumptions Pulse @ per second. 5% roaming usage All tariff Voice/SMS/Data assumed at higher rate incl roaming usage RPM maintained at healthy levels Deepak Kumar Gupta
  • 8. OPTION COMPARISON RPM/ ARPU maintained at healthy levels. No differentiation in Voice Tariff, SMS tariff, Data tariff (2G/3G) Expected ARPU (in Rs.) to be compared vs only REC customers Daily: 10 / 5 days Weekly 2.5 weeks Monthly Full month Products targeting to ensure high REC base. Recommendation Recommended option 1 however if basis actual data simulation if option 2 can be improved with more voice minutes then Launch option 2 Launch only one weekly & monthly variant along with Daily variant Option Summary Expected ARPU in Rs. Deepak Kumar Gupta
  • 9. OTHER BUSINESS RULES & TECHNICAL CONFIGURATION Business Rules Customer is allowed to recharge as many times he wants Free unutilized SMS & Data will not be carried forward and will be forfeited on the FIFO basis Migration allowed from any Service Class excluding CUG service classes. Roaming Rates for all other networks as per standard charges. For ISD and Roaming calls recharge with any other topup. (cant be eliminated due to higher ISD charges and non uniform home network) Technical Configuration Voice + SMS + Data benefits to be given to the customer at the same time. In case of technical incapability, the addition of SMS & data pack to be done in batches every 15 mins through batch file uploads Product availability Paper for Daily & Weekly products. Monthly Version to be available on E-Recharge USSD/SMS menu All variants Online recharge All variants Deepak Kumar Gupta
  • 10. WAY FORWARD Proposal Evaluation Price points to be adjusted circle-wise basis the possible migration impact and base distribution. Communication Mass Media Launch across all circles using Electronic, Print, and BTL Additional Proposal - For increasing VLR Make Browsing on Facebook and Whatsapp Free with 3G for all customers Approx data usage 200 Mb (for browsing only) Cost of 200 MB ~ Rs. 40 @ rack rate This cost to be recovered by lowering the discounts given on retention Deepak Kumar Gupta