Telefónica O2 Adopts an Effective “Go-to-Market” Approach via Geo Marketing

When putting strategy and plans together Capgemini’s concern was always to keep it real and make sure that it can actually be implemented and measured. Matts Johansen, CMO, Telefonica O2 Czech Republic

The Situation

Within the consumer broadband market, Telefonica O2 Czech Republic (TO2) faces strong competition not only from cable operators and alternative ADSL providers but also from some 800 independent WiFi providers with a combined 60% share of all broadband connections in the Czech market. In addition, this highly fragmented group of WiFi operators can offer local service and support at a significant price-discount.

In order to compete effectively within this environment, TO2 sought to put in place its own Geo Marketing department to take-on competition head-to-head. The goal of the new business unit was to provide detailed market intelligence on a local level, conduct highly targeted promotions as well as guide and support direct sales channels like door-to-door and localized telesales. Additionally, TO2’s board member for the residential division wanted the Geo Marketing unit to be able to identify special needs of customers in targeted locations and develop tailored offers accordingly.

The Solution

To realize this vision, management at TO2 sought help from Capgemini to support the development and implementation of the new Geo Marketing concept as well as establish accounting processes. Overall, the key objective of the project was to develop a fully implementable approach to selling TO2 broadband services with a focus on establishing a new team including the reporting and analysis processes to bring Geo Marketing to life.

As a first step, TO2 and Capgemini built a detailed market intelligence model that categorizes every geo-locality in the Czech Republic based on three dimensions: social demographics, competitive data and usage patterns. Over time and through multiple iterations, the model was improved and now serves as the foundation of an integrated geo-marketing approach. This approach enables to utilize all available means of a standard 4P marketing mix to have as much regional and local impact as possible.

Subsequent steps in the project aimed to increase local awareness of TO2’s broadband offer by leveraging region-specific below-the-line communications and other targeted campaigns.

The Result

With support from Capgemini, the Geo Marketing unit is now fully operational with local campaigns currently operating in smaller towns and villages across the country. The implemented geo-marketing processes proved to be highly effective in managing where and how geo-targeted sales efforts should be conducted. Internal reporting and analysis is ongoing and a joint team has been established to document the lessons learned from each targeted region.

In selected locations, sales teams supported by Geo Marketing succeeded in growing the ADSL customer base by 10% in a three week period. To date, geo-marketing proved to be effective not only for expanding presence in the broadband market, but also in cross-selling mobile and IPTV services.

Future successes are expected as the geo marketing approach is proving highly effective in driving sales performances of door-to-door and localized telesales as well as brand stores activities.