NPD Session 3 Case Study Launch of Meta Advance Loan Service

The telecom market is a mature market with heavy influence of customers changing networks in
case of price discounts, network issues or better product options. The Churn rate across competitors
is very high as compared to any other industry. Customers keep on looking for innovation in the
products and are usually very comfortable spending a fixed same amount of money on a monthly
pattern. Average revenue per user or ARPU remains very constant for many users. Historically,
Price wars have been a major challenge for the Telecom Companies. Organizations market share
drastically drops down in case a player enters the market with slash down prices of the products.
Current Market Analysts suggest that the Tele density in the market is 90%. There are a total of
200 million Active Telecom Users and 120 million cellular Internet Users.
The Telecom Market survey suggests that there is a need for some facility for Internet Data Loan
once the usual internet data package expires. The product can be utilized in case of emergency and
gives the user a credit internet data loan. The amount will be returned in the next recharge from
the customer. The company had launched an airtime voice loan (AVL) service in 2020 that is priced
at Rs 20/-. Avg AVL users are 1 million and the % usage is declining by 1% each month.
Meta-phone private Limited1 is one of the four Telecom players in the industry. The other four
players in the market are namely M-Telecom, T-Telecom and U-Telecom. The market share of the
players in terms of Active Telecom Users and the market share in terms of the product usability of
Cellular internet users are shown in Exhibit 1 and Exhibit 2 respectively.
Waleed and Tariq are two newly hired product managers among a team of 15 members who have
been given the task to assess the customer feedback, evaluate the market assessments, develop a
business case, and seek approval by sharing proper justification for the launch of a new product
by the name of Meta Advance Internet Loan (MAIL) service. Management is also looking for a
repricing of airtime voice loan (AVL) service and a potential re-launch. On Average 20% of user
base runs out of balance once a month. One-time expected Infrastructure cost is 50,000,000 PKR
and once product development cost is expected to be approx. 10,000,000 PKR.

Exhibit 1: The Market Share in terms of Active Telecom Users

Meta Phone Private M-Telecom U-Telecom T-Telecom
Limited
40% 20% 25% 15%
*All numbers populated here in Exhibit 1 are hypothetical numbers.

Exhibit 2: The Market Share in terms of Internet Users

Meta Phone Private M-Telecom U-Telecom T-Telecom
Limited
50% 15% 20% 15%
*All numbers populated here in Exhibit 2 are hypothetical numbers

1
Meta Phone Private Limited is a hypothetical Private Telecom Operator Working in Pakistan.
Note The case Study “New Product Development of Internet Loan in Meta-Phone Private Limited has
been written by Mr. Danish Asdaque Visiting Faculty Member at SZABIST Islamabad
 NPD Session 3 Case Study Launch of Meta Advance Loan Service
Case Analysis and Questions

1. Evaluate the options available for the organization in the re-launch of the airtime voice loan
service that will fall under the domain of new product development?
2. Determine in Ansoff Matrix the placement of the launch of the Meta Advance Internet Loan
service (if they are the first movers in the industry)?
3. Evaluate the approach which you have followed as a new product developer? Conduct
analysis which is the best way to move forward. Launching a new product or handling the
challenges of the existing product and consideration of a re-launch?
4. Develop a new product development plan for Meta Advance Internet Loan using the best
practices of the industry.
5. Determine the attributes by virtue of which product manager at the organization can follow
design thinking approach?
6. Evaluate and design a business case model for both the options available for the company
and share which option to proceed.

Note: Only Take valid assumptions in case the data / Information is not available in the case study.