ACL case Study
Market leader in Landlines and Broadband.
) Price leader in the Landlines Category. ) Business Processes not integrated. 2) High service price. 3) Internal conflicts. 1) Growth in mobile segment where the market share is low.
2) Improve performance and quality of Service. Competitors offering low prices and attractive schemes like free broadband. Case Solution: 1) Focus on Customers availing more than one service rhea landlines Business customers of Meridian are the one who use: a) only landlines b) landlines and broadband z) all the three services relic’s offering is for the business segment customers who can enter into a long term contract with them.
Mostly these are the customers who are availing more than en service from different departments. Certainly these customers deserve greater attention. It is very important for the company to build customer loyalty for these customers so that they do not leave them in future.
Recommendations: To build Customer loyalty and improve service, the company should adopt approaches such as product integration, single bill system, central contracts and customized loyalty programs. This is what most of the business customers would seek in a service sector industry like Telecoms.
Company can also plan for a centralized service support system for these customers in future. If the existing customers are given these services coupled with some discounts it is very less likely that they will switch to realize or any other service provider tort a long term Contract. 2) Give Value by providing Quality and use it as a differentiating factor Even though low price may be good offering for some customers but the service quality is of paramount importance for business customers.
Meridian is a company which is known for its quality service in the market and that is why it has been a price leader in the market.
Recommendations: Meridian should improvise more on the quality to maintain its customers rather than launching an equivalent scheme or giving them heavy discounts. Giving heavy discounts make more sense for a new entrant but Meridian should not follow the same as it would affect their revenue and profitability seriously and can affect their brand image as well.
It should give quality as a value preposition for the business customers rather than low cost. It should make processes smoother, faster and better (like those mentioned in point 1) which can help them provide good customer experience and achieve customer loyalty. By giving a better service Meridian can definitely create a differentiation point in their service which cannot be easily imitated. Also other players are much smaller than Meridian, they will not have resources and capabilities to copy the same kind of systems and hence Meridian can maintain a competitive edge over them.
) Positioning the brand as high quality service provider Giving high quality is important to the customers but it is equally important that customers also perceive that Mercuric provides high quality service. Only if the company is positioned as the one which gives value by giving good quality service, it can Justify high prices. Recommendations: Even in the past the brand has not been perceived as a low price brand in the market and was a price leader. It has retained its position despite the fact that there were many brands offering the low prices.
Ninth Meridian providing better services, the scenario can get only better.
The advertisements of Meridian must reflect that it is a premium brand and is for those customers who are seeking good quality and service and not low cost. 4) Provide discounts in the Mobile Segment realize has significant presence in the mobile market with a 25 percent share where as Meridian has Just 5 percent share. Company should launch some Sales promotion schemes for this category of customers. Recommendations: We would not recommend to drastically reducing the price or giving heavy discounts.
This may again hamper the Meridian’s brand image.
Meridian should identify the customers who are using their business services and can give discounts to those customers. For example it can give discounts to the employees of the companies who are taking the other services like landlines and broadband. This would build customer loyalty in the landlines category and at the same time increase the market share in the mobile category. It would also send a strong signal to the Utilize that Meridian can play a parallel war in the other category. ) Resolve Internal Conflicts Each department head of Meridian is looking for their department’s profitability. Nile implementing better systems like single bills and product integration they will be requiring support from all the departments.
Recommendations : CEO of the company should make them understand that they are selling services together and should nave more holistic view rather than looking at individual departments. They must be able to appreciate the basis of cooperation and Interdependence for achieving better results.