&ar'etin( )lan* +ele%ommuni%ation ,om-an. / $
Group members: Nouf Al Janahi
200920194 200920194
Hessa Al Ghaith 200923012 200923012 Shamma Yousif
200921539
Noora Abdulla
200920449 200920449
Reem ahad
200920235
Habiba
200920245
Instructor: !i Instructor: !i Sun Course: "us Course: "us 310#502
Date: $e% Date: $e% 5 2011
Table of Contents
Executive summary .......................................................................................................................... ........ 3 Current Market Situation analysis ..........................................................................................................4 SWOT Analysis ...................................................................................................................................... 1 Ob!ectives an" #ssues .............................................................................................................................. 1$ Marketin% Strate%y ................................................................................................................................ 13 &eferences ...............................................................................................................................................1'
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Executive summary
Du is the second telecommunication company operating in the United Arab Emirates. Du was first launched in 2006, starting with providing mobile services which later developed in providing fied telephony, broadband connectivity and !"#$ services for businesses, individuals and homes. Du also provides carrier services for business and satellite up%downlin& services for #$ broadcasters. Above all that Du offer value and enhances their services every now and then. 'y (ctober 20)) over * million people and over +0,000 businesses have chosen to use Dus services and become their customers. Dus ob-ectives are driven and stem from the companys vision and mission, which are (ision) #o enhance your life, anytime, anywhere. Mission) /e want to delight our customers, be the employer of choice for the best talent,
create optimal value for our shareholders through b usiness ecellence and innovation, and proudly contribute to the transformation of our community. /e wor& to deliver our vision by using our talent, s&ills and energies to connect, inspire and reward all we touch, every day.
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1. Market Situation Analysis Current Marketin% situation)
#he telecommunication industry has widened with the strong potential, and determined mar&eting strategy and services that are more effective to attract more customers. Du is a telecommunication industry that was founded in 2006. !t offers mobile and fied telephony, broadband connectivity, and !"#$ services to individuals, homes and businesses. Du consist of over 2000 employees, with more than *0 locals in the seniors management teams and customer1facing staff, and have around + billion revenue. !t has flourished the UAE mar&et by acuiring around +0 mobile mar&et share within five years of its entry, and maintaining an annual growth rate of more than 32 in a saturated mar&et. A statistic that was done in (ctober 20)) shows that over +0,000 businesses have chosen to use du services and become a regular customers 4Du, 20))5. #he high care in enhancing the life of the customers with all honesty and creating innovations that pleases them has made the competition intense. "rice strategies are made by &eeping the competitor price strategies in mind to provide the consumers with a competitive price. omparing the pricing strategies of competitors is very important topic for mar&eters. #he UAE telecommunication mar&et consists only of two cellular companies, which are Du and etisalat. A few years ago, Du entered a )00 penetration mar&et, ta&ing the ris& to compete with etisalat, a pioneer and leading company in this region. Etisalat offers a good uality of service with high pricing whereas, du offers low prices that has attracted many customers.
Market "escri*tion)
#he #elecommunication company Du considers the target audience as a priority, and they consist of residential and business customers. #hose audience have different preferences, such as products and services that enable communication and entertainment of a high uality and at good prices. Du7s creations focus on providing the target mar&et segment innovative and new
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services to assure a better eperience to the categories that range both socially and professionally. Du has the broad target segments that are onsumers, 'usinesses, and carriers. #he patrons of du have a variety of products and services to choose between. Du provides pac&ages that are more convenient for local and international communication, such as using landline benefits, as payment is by seconds, simplified tariff on international calls, and around the cloc& off1pea& international rates . 8oreover, Du offers a uniue entertainment eperience through du #$9 with a selection of features: such as instinctive channel browsing, pause, rewind and record of live #$. Also, theres no missing out on ;D and 31D television plus <8ovies on Demand = and =(n Demand lub< with your desired #$ shows while at the comfort of your own home. #he customers of du can en-oy the vast handset products, including blac&berries, i"hones , >o&ia, and ?amsung galay with many eclusive offers. Du performs at high consideration of the targeted mar&et, and improve alongside the technology to assure their comfort and satisfaction. #he emergence of a new #elecommunication company that targeted both the nationals and the emergent citi@ens has indeed increased the competitive power. #he different offers and lower prices provided for messaging, phone calls, /i1i, and different entertainment systems are ma-or factors that increased competition. #he &ey, and only competitor of du in the United Arab Emirates, is Etisalat.
#argeted segments
ustomer >eed
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orresponding feature%'enefit
Consumers )
;ouseholds
!ndividuals
#o have improved entertainment technology
to stay in contact with the world in cheaper prices
to carry less devices rather than many
Epress individualism through new technologies
+usiness)
?mall and medium business
search for ease, support, simplified solution where all their telecommunication reuirements are met at one stop shop
o
present mobile and fied voice calling, !nternet, data services and television. "rovide internet services that are more convenient such as the 8obile 'roadband Data ard that provides with internet everywhere. moreover, the television services that assures movies on demand, controlling with forward pause and record of live #$, and high definition of many pac&ages.
o
business voice that allows users to benefit from inbound and outbound services to ease your communication needs
o
business mobile that provides fleible mobile strategies and mobility products to outfit the business needs.
o
o
Enterprise and Bovernment
arriers 'lue color wor&ers
Aim for growth
enhance relations
Develop business analytics an product
,ro"uct &evie-) )a(e 6 of 17
o
business managed services help enhance the business !# investment value business access is committed to secure and reliable point1 to1point connection for offices countrywide or globally that are there when needed.
"rovide international data networ&s and wholesale services to international operators, multinational corporation and telecommunication carriers.
(ur company provides products and services for businesses such as
'usiness mobile are fleible mobile plans and mobility products that suits the business needs
'usiness voice allow businesses to gain advantage of inbound and outbound services to fulfill their communication needs.
'usiness broadband is an internet service that allows companies to communicate with their customers and provide reliable source of information with a lower cost that helps drives the overall business productivity.
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?ymmetric high speed% redundancy% highly reliable
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Unlimited internet up to )Bbps with attractive prices
(ur company provides different mobiles products and services
;andsets gives the customers the chance to choose the mobile phone that suits them.
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'lac&berries provides email service that automatically delivers email message%manage multiple accounts% get online% view documents
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>o&ia phones with du offers ) B' data free per month for ) year
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?amsung phones with du offers ) B' data free per month for ) year with elite super plans
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C"E!A arc with du buying new Cperia arc with any of dus elite plan allows the customer to get ) B' free data every month for a whole year.
8obile broadband enables consumers to en-oy faster mobile internet browsing, music downloading, and other applications that reuire high speed mobile broadband access.
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internet &ey supported by dus state1of1the1art ;?"A9 data networ&% high speed data connectivity% managing contacts and sending and receiving ?8? laptop%
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-
8icro Data ?!8 high1speed data connectivity% provides variety of a ttractive and unbeatable data bundle rates, tailored to individual needs.
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data bundles surf the internet, watch videos, chat and many other entertainment using mobile device more reasonably by subscribing to the data bundles.
#raveling abroad du has tied up with over + 30 telecom operators worldwide to ensure for their customers to stay in touch and en-oy a full ranch of services
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"assport calls within the B be charged at only 0 fils per minute that allows customers to en-oy tal&ing longer for less.
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(ne world one rate offers an attractive and unified price of AED ).2*% minute for all incoming calls while roaming abroad.
(ur company provides different home products and services
Fandline pay by the second% flat rates for national destinations% off1pea& international rates around the cloc& to all countries
'roadband easily connect to the internet by -ust plugging the computer into the soc&et without the use of modem or a passwords and usernames. ?everal pac&ages from 2+ 8bps to 2*6 Gbps with various speed is available to chose from.
#$ contains advanced features such as simplified search and display, superior channel browsing, instant channel change capability, high definition #$, and the option of pausing, rewinding and recording live programs.
eal broadband pac&ages offers premium home services at an attractive price with fast speed.
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#al& call the world with ) fils per second using the home landline.
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?urf offers up to )6 times more broadband
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/atch offers intuitive channel browsing, pause, rewind, record live #$, and 31D movies on demand and #$ shows. )a(e 8 of 17
#he service that we are focusing on in this paper is the (n world one rate
(ffers one unified and attractive rate of AED )*0 per *0 G' for mobile internet and ),2* per minute for all incoming calls while roaming abroad.
harges for outgoing calls and ?8? are set based on areas of the world.
alls to any number of the visited countries starts from AED ),2* per minute in B up to AED * per minute according to the rest of the world.
alls bac& to the UAE begins from AED 3 per minute in B up to AED per minute according to the rest of the world.
?8? charges are AED ) per ?8? in B and up to AED 2 per ?8? according to the rest of the world.
Data roaming is AED ) per *0 G' in anyplace in the world.
(utgoing and incoming calls are charged on a 60 seconds unit basis.
Com*etitive &evie-)
#he emergence of a new #elecommunication company that targeted both the nationals and the emergent citi@ens, has certainly increased the competitive power. #he different offers and lower prices provided for tet messaging, phone calls, /i1i, and different entertainment systems are ma-or factors that increased competitiveness. #he foremost, and only competitor of du in the United Arab Emirates, is Etisalat.
Etisalat is the leading telecommunication organi@ation in the UAE mar&et, etisalat offers a good uality of service using allowance, promotion, and segmented strategy. !t uses promotional strategies rather than reducing the prices. #heir pac&ages are more comple and a bit tric&y for a normal customer, and are overall more epensive than du. 8oreover, Etisalat has invested in )H countries worldwide and caters around +.H million customers. )a(e 9 of 17
#hus, the telecom will grow in the competitive mar&et according to the increase in profits and revenues 4>aeem, 20)05. Despite this strong competition, Du can carve ou t a definite image and gain recognition among the targeted segments. !n the 'ond "rospectus at the Fondon ?toc& Echange, etisalat stated that =the introduction of Du in 200H led to significant changes in Etisalats mobile tariff structure, including segment1targeted promotions and tariffs. !n addition, the significant number of new promotional offers introduced by Du and Etisalat during the period from 200H to 200 and through 30 ?eptember 20)0 led to a decline in effective tariffs< 4>aeem, 20)05. Additionally, du has attracted over )*,I00 customers in the last uarter and a total mobile mar&et of 3H percent. Du is the economical service provider, it attracts its customers by providing lower prices than etisalat, but unfortunately provide lower uality. Du offers bundle, allowance and discount, and segmented strategy. !t offer per second pricing, thus a ma-ority of user prefer to call from du.
$.
SWOT analysis Stren%ts
Du has three important strengths Talk, Surf and Watch package. #his pac&age offers premium home services at an attractive price. #he benefits of this pac&age are users can call the world for as low as ) fils per second from their home landline, where they pay by the second. Users can also en-oy up to )6 times more broadband and get free * e1mail accounts with ) B'mailbo each plus free antivirus and anti spyware software. Users can watch whatever they want, whenever they want.
Du TV+. #his feature that can be eperienced with an array of advanced features such as intuitive channel browsing, pause, rewind and record live #$. Users can en-oy ;D and 31 D television plus8ovies on Demand and (n Demand lub with their favourite #$ shows from the comfort of their homes.
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Loyal customers because of fair prices. Du charges local and international calls by the second. #herefore, people are more interested in Du and trust it more than Etisalat. Du has a large number of loyal customers. Unli&e Etisalat, Du is more customer1oriented and I0 of Etisalat customers shifted to Du because of their p rices.
Weakness)
?ince Du is a new telecommunication company, it has learned from the mista&es of Etisalat, which was the only telecommunication company in the UAE. ;owever, it still has some wea&nesses Lack of signal. Dus signal is still not available everywhere in the UAE.
Services not used by everyone. >ot a lot of people use Dus services because it is still new to the mar&et, and the public doesnt really &now the products and services that Du is offering.
O**ortunities
ncreasing demand for cheaper telecom services. #here are only two telecommunication companies in the UAE, which ma&es the mar&et have an oligopolistic competition between Du and Etisalat. #here is an increased demand for the cheapest telecom company. Du is trying to &eep ahead with the fair prices by creating pac&ages and services that are cheaper than the other telecommunication company.
!etter technology. 'eing in the 2)st century a wide range of technologies have evolved with lower cost. #herefore Du can bring better services with the advanced technology at a lower cost and therefore offer value1added prices.
Treats )a(e 11 of 17
Do"n"ard pressure on pricing# increased competition between Du and Etisalat has lead Etisalat to use some of the same pricing strategies du is following, causing a downward pressure on pricing. or eample, Du follows the pay by second theory while Etisalat used to use the pay by minute. 'ut after Dus success Etisalat started using the pay by second theory. $uture competition threats. ompetition in the mar&et for telecommunications systems is highly competitive and the company epects this competition to increase. !t is epected that continued growth and competition in the telecommunications industry, and new competitors will enter the mar&et. %lternative pricing arrangements. Alternative pricing arrangements may be reuired to cultivate relationships with new mar&et entrants, and to a lesser degree with established companies. Even though Dus prices are reasonable, they still need to have alternative prices to stay ahead of the telecommunication company.
3.
Ob!ective
irst1year (b-ective #he mar&et of telecommunications was a monopolistic mar&et which was controlled by Etisalat. Dus aim is to be stable in the mar&et, to have a strong and professional relationship with customers. ?econd1year (b-ective #o increase Emirati@ation, which is by employing UAE nationals in the company, develop training programs for UAE nationals, supporting pro-ects of UAE nationals, and ad vertising for the company =du< throughout the UAE cultural places around the UAE. #hird1year (b-ective
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Dus third ob-ective is to go globally, to open du branch in the 8iddle East countries such as Egypt, G?A, 'ahrain, Algeria, and other countries too.
1
!ssues in general ?ince the company is entering a monopolistic mar&et, du needs to spend a lot on the mar&eting procedure. Also, another issue is to form a confident relationship between customers and the company, since the company is new and needs a lot of support.
4
Marketin% strate%y
Dus mar&eting strategy stems from first analy@ing the current mar&et, and later developing mar&eting ob-ectives which influences the products design offered, and dus overall mar&eting approach. Dus mar&eting strategy is based on a positioning of product differentiation. #heir primary consumers are both women and men from age )I and above who need good telecom products and services at good prices. Dus secondary consumers are epats who are from the lower level that come wor& in the UAE and need cheaper prices to contact their family and friends bac& home. the UAE telecommunication industry in the past has a lways been product oriented, meaning Etisalat being the sole telecom provider will provide the customers with one product, catering to the whole entire mass of people in the UAE. or eample for mobile services etisalat use to offer two &inds of mobile plans either prepaid or monthly plan with no rewards or special offers. (ne product that is not cu stom made catering to the entire country. /ith no competition in the mar&et, and no options for the consumer, lead to the lac& of creativity in the product offered. ,ositionin% )a(e 13 of 17
Du is positioning their mar&et as the most up to date, convenient and value1added telecommunication company in the UAE. #heir mar&eting strategy is to focus on the consumers need rather than -ust launching a product in the mar&eting. #his could be established by segmenting and later designing a product or an offer which this segment reuire or would be interested in. Du continually hunts for new and innovative plans that sends importance and value to all their customers and build a long lasting relationship meeting their epectations and needs. ?ince most of the customers travel between their wor& area and home , du loo&s for great solutions by offering voice, messaging, data and increasingly fied line services to meet consumers needs.. ,ro"uct Strate%y
Du recogni@ed how much the internet and phone calls is increasing in everyones daily lives and decided to create a new international roaming offer. #his offer is called (ne /orld (ne ate which is a flat data pricing rate for its subscribers who are able to use mobile internet while travelling anywhere in the world. !t provides unified prices for all incoming calls while roaming abroad, anytime, anywhere. "lus instead of charging you for outgoing calls and ?8? depending on the country youre visiting Du have made things simple by setting up charges based on areas of the world instead. (ne /orld (ne rate will enable customers to en-oy more value, simplicity and convenience than ever before. ,ricin% strate%y
(ne /orld (ne ate costs AED ).2* per minute for all incoming calls and AED ) per *0 G' for data. Du will introduce a more affordable service in the upcoming years if this type of service became highly demanded. #heir prices reflects Dus strategy of attracting new customers as well as maintaining their loyal customers. #his offer provides customers with peace of mind, rather than having to worry about hidden international costs.
/istribution strate%y )a(e 14 of 17
Dus distribution strategy will be using both direct channel and indirect channel. #he (ne /orld (ne ate services can be obtained from a variety of ways such as retail locations, by telephone or through our website online. During the first months of providing this service, du will advertise in promote areas where large numbers of epats and other individuals who will be interested in this service. #hese areas will be in Airports and malls across the UAE. Advertisements in tourism and boo&ing websites will also be part of distributing this service since the internet is an important &ey channel to promote services. A third party service provider and distributors will be part of the indirect distribution. #his will allow the service to epand and offer top uality and uncomplicated roaming services to cater the needs of both national and international customers.
#his is the advertisement that will be distributed
Marketin% &esearc
?ince Du is committed to providing elite, affordable and, simple roaming services, mar&eting research will ta&e place to support development and evaluate #he (ne /orld (ne ate service. !t will start by creating surveys and focus groups to an aly@e the consumers opinions and attitude towards the service. #his will help in developing #he (ne /orld (ne ate service. #he second step will be researching the awareness of this service. #his will be done by analy@ing the effectiveness of the advertisements. #hroughout this research du will be able to &now the degree of satisfaction of their consumers
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Marketin% Or%ani0ation
Dus senior president of mar&eting and customer eperience is responsible for all the mar&eting activities in the company. #he figure below shows the top level employees whom are in charge of different aspects of the mar&eting department in Du. Subhra $as Senior )resident &ar'etin( and ,ustomer e-erien%e
&ar' "riers
Souhail Hadd6i
Asho' 7srani
John !in%oln
Saleem &ohbani
i%e -resident
i%e -resident
i%e -resident
i%e -resident
i%e -resident
Strate(i% &ar'etin(
&ar'etin( ied
,onsumer Se(ment
8nter-rise &ar'etin(
$i(ital &ar'etin( 8ntertainment
&eferences
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)a(e 16 of 17
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[email protected]%article%20)0))23%du1crushes1etisalat ?ituation analysis. 420))5. 'usiness dictionary. etrieved December 3, 20)), from http%%www.businessdictionary.com%definition%situation1analysis.html http%%tbrea&.com%tech%20))%0%etisalat1vs1du1mobile1and1internet1pac&ages% http%%www.analysysmason.com%About1Us%>ews%!nsight%'rea&ing1a1mobile1monopoly1dus1 strategy1to1ma&e1an1impact1in1the18iddle1East%M-ourneyNH+06,+*6I,
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