introduce airtel in somalia

8/3/2019 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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introduce airtel in somalia

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