The 91-92 Phone Card: Launch and Reassessment

  • Reference: M-1023-E

  • Year: 1991-1992

  • Number of pages: 24

  • Publication Date: Jun 30, 2006

  • Source: IESE (España)

  • Type of Document: Case

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Description

In the early nineties, Telefónica of Spain foresees the imminent liberalization of the market and decides to promote public telephony with the launch of a calling card as a new means of payment in phone booths. The product was successful in neighboring countries, but it failed to take off in Spain. Coins are still preferred for 95% of calls. The reasons are unclear: bad segmentation, an unattractive product, excessive face value, low distribution coverage or misleading advertising. The targets set by the chairman are very ambitious and involve gaining 30% of the market over the next three years. What actions should be taken? What objectives, segments, media, messages and budgets should be put in movement in the advertising campaign? Should a phone card with a smaller face value be launched? How should distribution be handled?

Keywords

Advertising Distribution Marketing