A Simulation Based Model for Optimal Alignment of New Product… 23 A Simulation Based Model for Optimal Alignment of New Product (Scheme) to Market Segment: The Case of Indian Mobile Telephony1 Harshal Lowalekar and N. Ravichandran Indian Institute of Management, Indore ABSTRACT In order to realize dominant market share, and maximize revenue, the service providers offer a wide range of innovative schemes. Also, the schemes are judicious combination of price and features like free talk time, validity period etc. The technological environment of the industry is rapidly evolving. In a sense, the telecom sector is characterized by demanding customers, low product differentiation, severe intensity of competition and a rapidly changing technological environment.
The Indian telecom sector is characterized by rapid growth and intensive price competition. This paper using a spreadsheet based simulation model demonstrates how a user can choose the most economical scheme among the available ones based on his usage. Based on this information, it is demonstrated as how a service provider can design the most suitable product (scheme) for a given category of users characterized by their age, income level and usage pattern. The spreadsheet model proposed here is generic and can be used in similar contexts characterized by intense competition, multiple players, diverse price sensitive customers, and rapidly changing technological environment.
|Journal||Fourth National Conference on Management Science and Practice|