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Group 8 July 22, 2005 Omnitel Pronto Italia Let us first understand the backdrop of the Italian Mobile phone Market. * Low saturation of demand: Offers great opportunity for penetration. Thus it is important for 'Omnitel' to come up with a clear defined marketing plan to increase its market share * Italian consumers dislike monthly fees and thus we recommend Change 1 and eliminate fixed cost of having a mobile service. We believe this would be a great success as it would be hard for TIM to replicate this strategy because it already has a huge market share which would lead to a large loss in revenue from its existing clients. Also if TIM positions 'no monthly plan' only to new customers then it might lead to dissatisfaction and resentment * Consumption of mobiles services is not necessarily economic but also social (fashion). This prompts us to identify clusters of consumers. Thus we recommend...

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