1.

Based on ver-cal and horizontal segmenta-on, Telenor should segment 3 because of following reason :
• Digital and Mobile Savvy, segment 3 is proficient with digital and mobile technology, aligning well with
Telenor’s core competencies in telecommunica-ons. This means Telenor can focus on catering to their
behaviour without inves-ng significantly in conver-ng people who are not as knowledgeable about digital
and mobile technology, unlike Segment 2.
• Large Business Scale through Loan Opportuni:es, Segment 3 demonstrates a notable inclina-on towards
taking out loans to fulfill their various needs, presen-ng Telenor with a significant revenue opportunity in
the realm of lending services. This tendency in Segment 3 offers a dis-nct advantage, as the poten-al for
revenue from loans is less evident in other segments such as 1, 2, 4, and 5. By tapping into this propensity
for borrowing within Segment 3, Telenor can not only diversify its revenue streams but also expand its
business scale substan-ally.
• Diverse Age Range, Segment 3 encompasses a wide range of ages, offering the poten-al to tap into a
broader market. This is more advantageous than focusing on a specific age group, like Segment 6, which has
similar aJributes but represents a much smaller por-on of the market at only 4%, compared to Segment
3's 13%.
• Brand Dilu:on Risk, Segment 3 is considered a balanced segment in terms of size for market penetra-on,
where there's a manageable risk of failure. Should the strategy or product not succeed, the impact on
Telenor’s exis-ng brand as a leading telecommunica-ons company in Serbia, with significant brand equity,
would not be overly detrimental. if Telenor succeeds in this market, leveraging the economic scale gained
from this segment, it could then expand its reach into broader markets. This approach allows for a cau-ous
yet poten-ally rewarding entry into the market, balancing risk with the opportunity for growth.
2. Telenor’s value proposition be in the retail banking space :
• Revolu:onizing the banking experience by offering a super user-friendly app with innova:ve features
such as in-app account management, mobile wallet capabili:es, and digital payments/transac:on. By
u-lizing mobile data for personalized financial services, Telenor aims to significantly enhance customer
convenience compared to the complexi-es of transac-ng with tradi-onal banks. This approach emphasizes
the ability to perform banking transac-ons on the go, allowing customers to manage their finances any-me
and anywhere, simplifying their banking experience and integra-ng it seamlessly into their daily lives.
• Trustworthy Partner in New-way Banking, Leveraging its established reputa-on in telecommunica-ons for
robust security and reliability, Telenor ensures the highest standards of data protec-on and transac-on
safety in its banking services. This commitment to trust is evident in its transparent policies, clear
communica-on, and transparent pricing (no hidden fee), all designed to build and maintain customer
confidence. By offering dependable 24/7 customer support and adhering to strict regulatory compliance,
 Telenor posi-ons itself not just as a service provider but as a trusted partner in the financial lives of its
customers, making trustworthiness a cornerstone of its value proposi-on.
3. What types of financial services should Telenor offer? How should it price them? Should it open branches?
a. Telenor should choose to offer “Retail Mobile Banking” Services for the following reasons:
• Dis:nc:ve uniqueness/differen:a:on, Telenor can leverage its telecom strengths to create a unique
user experience that integrates seamlessly with mobile services, providing a unique selling proposi-on
compared to tradi-onal banks.
• Telenor Core competency in digital and mobile technology posi-ons it to excel in mobile banking to
offer create a superior app func-onality, beJer security measures, and more reliable service
• Interna:onal experience with launching mobile banking services in Pakistan and Thailand provides
valuable insights into consumer behaviour, successful strategies, and poten-al piXalls, especially
lessons about using or not using the Elenor brand for the digital banking product.
• Captures more value within the financial ecosystem. Offering services such as loans and transac-ons
provides a compe--ve advantage by engaging customers in a full financial experience. This leads to
increased customer loyalty and dependency on the conveniences offered.
b. Telenor could approach pricing for its mobile banking services :
• Competitive interest rates on loans and credit services. Consider a lower rate for the first loan to
attract new customers, and offer discounted rates for loyal customers or those using other Telenor
services.
• Freemium Model, Offer basic banking services for free, which would include account
management, transfers within Telenor’s banking network, and balance checks. Premium services,
such as higher transaction limits, international transfers, or investment services, could be provided
for a fee.
• Subscription Fees, Charge a subscription charge, either monthly or annually, for a range of
services, such as unlimited free ATM withdrawals, unlimited free interbank transfers, or priority
customer care.
c. Not recommend opening new branches, considering our target segment's digital and mobile proficiency
and their diminished reliance on physical bank branches. Instead, Telenor should enhance the app to serve
as the central hub for customer service, ensuring a comprehensive mobile banking experience. For
addi-onal support, customer service should be accessible 24/7 through call or chat op-ons. It would also
be prudent to incorporate digital banking services within exis-ng telecom branches and equip staff with
thorough product knowledge of Telenor’s mobile banking to assist customers seeking in-person assistance.
Nonetheless, the primary focus should be on the app and its embedded customer service func-onali-es.