Abstract
In March 2006, T-Mobile UK introduced a new range of postpay tariffs under the
Flext brand. These tariffs have made a significant impact in a short period of
time.
In the current case study we:
- Consider why minute bundles which have been popular in the UK for the last
number of years have found favour with customers in that market
- Explore the reasons T-Mobile decided the time was right to move away from
bundled minute tariffs towards value allowance based tariff bundles in the UK
market early in 2006
- Identify the enhancements to the Flext offer which T-Mobile felt were
required in order to optimise its market impact
- Explain how the offer has been customised to stimulate greater demand
through T-Mobile's direct channels
- Show how payback is guaranteed/improved upon by making the service
exclusively available with extended service contacts
- Indicate how the success of the plan has outperformed expectations,
leading to undersupply/overdemand, allowing T-Mobile to reduce channel
commissions to manage demand for this service.
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