Download - Introduce Airtel in Somalia
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Introduce Airtel In Somalia
BY:- Ram Choudhary
Guide by :- Jitendra Sharma
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Somali Background
Somali in Brief Population:
8 10 Million
Economy: Livestock, trade, agriculture
Politics: unstable over 18 years
SomaliREN has 7 participating
Tertiary institutions across thethree zones of Somalia: Somaliland
Puntland
South-Central Mogadishu
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uranium and largely unexploited reserves of iron ore, tin, gypsum, bauxite, copper, salt
Urbanization:urban population: 37% of total population (2008)
Languages:
Somali (official), Arabic, Italian, English
GDP (purchasing power parity):$5.896 billion (2010 est.)
GDP - real growth rate:
2.6% (2010 est.)
Geographical & Demographical
Agriculture - products:
bananas, sorghum, corn, coconuts, rice, sugarcane, mangoes, sesameseeds, beans; cattle, sheep, goats; fish
Natural resources
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Industries:
a few light industries, including sugar refining, textiles, wireless communication
Climate:principally desert; northeast monsoon (December to February), moderate temperatures in north and hot insouth; southwest monsoon (May to October), torrid in the north and hot in the south, irregular rainfall, hotand humid periods (tangambili) between monsoons
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Economy-overview:
Despite the lack of effective national governance, Somalia has maintained ahealthy informal economy, largely based on livestock, remittance/moneytransfer companies, and telecommunications. Agriculture is the most importantsector with livestock normally accounting for about 40% of GDP and more than50% of export earnings. Somalia's small industrial sector, based on the
processing of agricultural products, has largely been looted and the machinerysold as scrap metal. Somalia's service sector also has grown.Telecommunication firms provide wireless services in most major cities andoffer the lowest international call rates on the continent. In the absence of aformal banking sector, money transfer/remittance services have sprouted
throughout the country, handling up to $1.6 billion in remittances annually
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Reason for selecting Product & Company for that market
Great opportunity to introduce this service
Less competitors
Telecom sector growth in somalia
Not many option to introduce any other product and service
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Company 4ps
PromotionLarge scale print and video
advertising.Big celebrities.Provides innovations such asmovie premiers, music servicessuch as ring back tones & manymore.
Price
Customer based pricing strategies.
Flexible pricing mechanismControlled by TRAI.
ProductAirtel Pre-paidAirtel Post-paid
Multimedia messaging service(MMS)SMS based Information ServiceVoice Mail ServiceGPRS
Place
It has wide and extensive presence even in
the remotest areas.
Airtel Customer Care Touch Points.
Distributors like
E.g. Paan shops, grocery stores, chemists,
outlet etc.
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Industry analysis
The sector is very tough; the political instability makes it hard to project on the growth ofusers.
Only 25.09% of population are cover by telecom sector from 9.9 million population.
Rank Operator TechnologySubscribers
(in millions)
Ownership
1 SOMAFONE GSM 0.201 Somafone FZ LLC
2 Nationlink GSM 0.139 Bintel
3 HormuudTelecom
GSM 0.133
Hormuud
Telecom SomaliaInc
4 Telsom Mobile GSM 0.125Telsom Mobile
Somalia
5 Golis TelecomSomalia GSMNot Yet Available Golis TelecomSomalia
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Key Success Factor & USP
Strong brand name, superior quality products and an enviable distribution network
It has a clear and well defined organization stucture and limits of finacial authority
Companys bottom line falls victim to the bloated and highly paid workforce, which
affects its margins
Recognized Brand
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Competitor 4ps
In Somalia there are major four player in telecom sector
SOMAFONE Nationlink, Hormuud Telecom, Telsom Mobile
ProductPre-paid, Post-paidMultimedia messaging service (MMS), SMS based Information ServiceVoice Mail Service, GPRS
PriceCustomer based pricing strategies.Flexible pricing mechanism
Place
It has wide and extensive presence even in the remotest areas.
Airtel Customer Care Touch Points.Distributors like
E.g. stores , grocery stores, chemists, outlet etc.
promotion
Large scale print and video advertising, Some local celebrities, sales propotion
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Marketing plan
4 Ps in international market
Product modification must be brought about
in AIRTELm in terms of quality
Place the brands must be made available
easily in ,pco and general stores
Price Customer based pricing strategies.
Flexible pricing mechanism
Promotion free samples, catalogues should
be distributed among customers promotional
activities like advertisements and
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Competitor strategies and there work
the telecom companies haven't competed only for customers. They have also
cooperated with each other to maintain their networks and set prices to
ensure that competition doesn't become too cutthroat.
Introduse and offer customer base offer
Make public relation
Addvertisement and
No Government, No Taxes, No-Man's Land
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Entry strategy that apply by the airtel
Intuitiveness:
A commitment to a spirit of intuitiveness in all of its business activities is what makes unique among other companies.
Experience:
Numerous projects and long history have given it the additional knowledge that can only come
from experience, enabling it to provide better service to its customers.
Quality:
Executives and employees insist on achieving and maintaining the standards in technologicalexpertise, customer service and business relations.
Respect:
Respect for opinions and ideas are essential to maintain a progressive environment.
Team Work:
Realizes that the increasing complexity of business and technology requires a combined effort
on the part of all employees to maintain a competitive edge.
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STP Design
Segmentation of airtel
Region wise
East Region (Mogadishu, banaadir, hargeisaetc)
West Region (baidoa, kesmaayo, kesmaayo etc)
South Region (burco, galkayo, jowhar etc)
North Region (borame, berbera, marka, bosaso, buale etc)
Central Region (baraawe, baardheere, garowe, laascaanood. Badhan )
Area wise
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Target
Income wise
Age group 18 to above
Airtel has targeted the premium and upper middle class
Students and young group
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Positioning
A lifestyle revolution and a status symbol The emphasis is to
remove misconception that the cell phone is an expensivemeans of communicationIts a day to day use commodity and is no more a symbol ofstat
Brand Identity
Provide better Services
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Marketing Strategy
Tower
So per rented tower cost is 6253.93 SOS per month.
40 towers in Somalia (62539.3*40) = 250157 SOS per month
Retail distributer
20distributer in Somalia
in Somalia all competitor provide a 1somali Currency charge per mint. But Airtel provide in
0.60 Somali per mint.
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Distribution
Direct sales of SIM card sales persons (46904.5 SOS per month)
Distribute Airtel Sim by distributer and in all mobile shop (7817.42 SOS per month)
Free distribution of sim (3908.71 SOS per month)
Campaigns (4690.45 SOS per month)
Promotion
Advertisement
Radio = 15634.8 SOS per month
T.V = 469045 SOS per month
Hoardings= 31269.6 SOS per month
BRAND NAME
AIRTEL
LOGO SYMBOL
In Blue Color Airtel logo
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City Country City Population Urban Area Population
Mogadishu Somalia 1183100 1183100
Hargeysa Somalia 231000 231000
Berbera Somalia 213400 213400
Kisimayo Somalia 201600 201600
Marka Somalia 173100 173100
Entry Location Cities
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Other expanses
Salary of staff
Marketing team=781742 SOS *12= 9380908 SOS
Finance staff = 156348*12 = 1876181 SOSAdministration= 156348*12 = 1876181 SOSMiscellaneous expenses= 79040.79*12= 938090 SOS
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License & Consulting Fee 788920.19 SOS
Site Search & Evaluation
Lease Negotiations
Real Estate & Leasehold Improvements, Design
& Development473336.93 SOS
Machine, Computers
Equipment, Furniture & Signs 78885-85000 SOS
Point-of-Sale System 4730-5500 SOS
Installation 4730 SOS
Freight 55000 SOS
Salary of emplyee 900 SOS
Equals Equals
Estimated Investment Costs 144245
151130 SOS
Estimated cost of one city
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Investment 10% profits1st year total investment budget 2012 =9455569.23 SOS 945556.9 SOS
2nd year total investment budget 2014 =12605638 SOS 1260563.8SOS
3rd year total investment budget 2014 =17331866 SOS 1733186.6SOS
I assume that investment cost will be increase by 10 % every year and profit will30% of total investment.
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