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The 91-92 Phone Card: Launch and Reassessment
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Reference: M-1023-E
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Year: 1991-1992
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Number of pages: 24
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Publication Date: Jun 30, 2006
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Source: IESE (España)
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Type of Document: Case
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?