Developing an Optimal Pricing Strategy

This publication has been discontinued on July 19, 2011.

Introduction

Abstract

This paper highlights the need for a proactive strategy when developing mobile pricing propositions rather than reacting to competitor initiatives. In the current document we propose a pricing framework that can be applied to voice, data and any new VAS services that may be on the horizon.

In this paper we address and answer the following questions:

• What isstrategic pricing? How can we apply a framework to pricing strategy?
• What factors must a mobile operator consider in developing a pricing proposition?
• How can an operator deliver winning pricing strategies?
• How should operators vary pricing for different segments? How can tariff options be evaluated?
• How do competitors, customers and costs impact an operators strategic positioning?
• What are the key elements in the pricing mix?
• What innovative voice and data pricing models are emerging?

Table of Contents

1. Introduction

1.1 Objectives

1.2 The Growing Importance of a Pricing Strategy

2. A Pricing Framework

2.1 Overview

2.2 Mobile Market Challenges

3. Estabddshing Strategic Positioning

3.1 Customer Demand

3.2 Operator Supply

3.3 Competition

3.4Positioning Map

4. Developing Pricing Propositions

4.1 Determining The Elements to be Priced

4.2 Estabddsh Segments

4.3 Innovative Pricing Concepts

4.4Evaluate Tariff Options

5. Implementing a Pricing Strategy

5.1 Good Practice

5.2Organisational Design

5.3Communication

6. Illustrative Pricing Innovations

6.1 Overview

6.2 Simple Price Plans

6.2.1 Definition and Objectives

6.2.2 Operator Examples

6.3 Add-ons

6.3.1 Definition and Objectives

6.3.2 Operator Example: O2

6.4 Segmentation and Bundddng

6.4.1 Definition and Objectives

6.4.2 Segmented Operator Examples

6.5 Usage and Loyalty Discounts

6.5.1 Definition and Objectives

6.5.2 Operator Examples

7. Summary and Conclusions

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