TELCO (B)

Group 3 Case Study

Viewpoint

Alex Jones (Launch coordinator for

CLASS/CMS project of Telco)

Time Context

The case takes place on November 1990

Problem Statement

Which is the better method to

launch CLASS/CMS to the market,
flash cut or phased launch?

Statement of the Objectives

Launch CLASS / CMS in Norford by early

spring of 1991.

Achieve 12% market penetration by end of

the 1st year of market launch of CLASS / CMS
and get 40% of subscribers to use Maestro
sets.

Areas of Consideration

Strengths

Product Development and Technical

Implementation is on schedule to be 80%
complete by May 1991
$2M budget is allotted for advertising

Weaknesses

No written documentation on the test launch in

Wentworth
Market research information from other telcos
are limited

Areas of Consideration

Opportunities

Product and Service test launch of CLASS / CMS

in Wentworth achieved higher than target resiults
CLASS / CMS is revolutionary in terms of the
featers that will become available to the market

Threats

Possible overload of the channels of distribution

and customer service team
Legal questions on caller ID feature

Alternative Courses of
Action

Implement a phased launch of CLASS /

CMS starting on January 1991
Implement a flash cut launch of CLASS /
CMS on May 1991

Analysis

Phased Launch

Advantages
Telco

can gain revenues earlier

Focused customer service and technical
support

Disadvantages
Possible

customer dissatisfaction due to

unavailability of services advertised
Possible loss of first-to-market advantage

Analysis

Flash Cut Launch

Advantages
Customers

can avail of 80% of features as

advertised

Disadvantages
Possible

employee dissatisfaction due to

overload of activities and customers that needs
support

Conclusion

Implement a phased launch of CLASS /

CMS in the Metropolitan Norford area
starting on January 1991.
Custome
r
Ease of
Satisfact Implementatio
ion
n

Cost
ACA

Medium to Medium
Phased Launch
High
High
to High
Medium
Low to
Medium
Flash Cut Launch to High
Medium
to High

Plan of Action

Start advertising the launch and highlight the

features that will be available first (1 month
before launch)
Training of sales and customer support teams (1
to 2 months)

Product and Service Specifications

Up-selling (employee incentive program)
Order Processing

Tracking and Feedback (post-launch)

Surveys from customers

Tracking of sales figures and market reception