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Etisalat Marketing Plan PDF
Etisalat Marketing Plan PDF
MKTG302
MAGED ABAZA
Submitted By:
Moataz Said Nagy: 900030101
Ali El Gendy: 900021955
Ahmed Abd
El Gawad: 900011681
Moataz Hamouda: 900010148
Index
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start it giant investment in Egypt in the field of mobile services and satellite
locations as follows as people living in the cities like Cairo, Alexandria, and Giza
where the greatest percentage of customers can be found. People living or working in
remote areas such as, oil fields, mobile phones are very vital as it is the only way of
which B2B is probably the most important segment that uses mobile phones.
its employees. Usually business organizations are looking towards the quality of the
service. Based on the segmentation process, it was decided that the best strategy to be
used for targeting would be a custom marketing strategy, where different services are
introduced addressing the unique needs of each customer. Our assumption in the
positioning table illustrate that B2B would give the service of coverage in different
places 40% importance. The satellite service would work on filling this unsatisfied
need of very high demand for businessmen and engineers in Egypt. It is also assumed
that businessmen do not have a priority considering the Premium Price and Regular
Payment which have 18% and 17%, respectively. This is because work in detached
areas or outside Egypt is usually for high-income people. That would guarantee the
success of the satellite mobile service. Our strengths will be high capital investment:
the high capital investment will help the company provide the newest technology like
the satellite service, while our weakness is the costs would be high relative to the
The opportunities that may encounter our company are can be summarized as the
increase in number of out-of-towns jobs; the skilled workers, the importance of
mobile phones to Egyptians; the political stability in Egypt and the welcome of the
Egyptians to third company that may break the duopoly. On the other hand, our
company may undergo some threats such as the low purchasing power of Egyptians;
the coalition of the competitors and the economic recession in Egypt. Our Objectives
are to be the company of the highest share in cellular phone network coverage
business in Egypt with five year and achieve profit of 500 million pounds. Strategy:
Market penetration strategy (prime product). We should enhance a price promotion
tactic for the prime product to gain substantial market share. The company has a
huge capital to establish its brand. To offer low price ill attract consumers. This
strategy will help the company gain the highest market share. Diversification
strategy targets specific stratum to promote our secondary product of satellite
connection which is not ordinary in Egypt. It will be offered for limited at higher
prices. This offering has direct impact on sales as our company is the only provider
of this service and indirect psychological one as the company is the only one to offer
this service which undermines the value of its competitors. This will help us achieve
500 after 5 years. In order to follow up the improvement of our company we have to
implement a controlling scheme on our performance. One of the most important
aspects to follow up is the percent achieved of the stated objectives. A numerical
figure has to be assigned to the objective and then continuously referred to in order to
know the performance of the company. In order to know how far (Etisalat) gained
from the market share it is suitable to calculate the value of our company at the end of
each year and compare it with the value of our competitors. If we have more value
than our competitors then we have highest market share. The amount of sales can be
calculated by knowing the number of our clients and compare that number with the
estimated number clients in our target market(s). After doing that we can know our
sales and our sales relative to the market.
The amount of profit is obtained by subtracting the costs and expenses from the net
sales. This is beneficial in controlling the objective related to amount of profit.
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MobiNil and Vodafone are functioning at the present time as they are the two
becoming an essential part of the daily life and are considered to be a necessity. It is
operating in Egypt.
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In late 1996, MobiNil started operating under the name Arento Telecom
Egypt. The company was owned by the government for a few months then it was
privatized and became the first mobile operating company in Egypt. MobiNil was
considered a monopoly at that time as the government gave it the exclusive right to
produce; moreover it was the only producer, owner of a key resource (mobile
technology only at that time) and a price maker. MobiNil has proved its leadership in
marinating Mobile services in Egypt to the extent that it has even able to acquire the
for its customers. It is a pioneer in meeting customer's diverse needs. MobiNil is the
first telecommunication company to develop EDGE that has five times speed than
In 1998, Vodafone started its investment in Egypt. Since then, the investments
of Vodafone have reached l.E 4.5 billion. It is estimated that Vodafone has many
products, such as, pre-paid lines, SMS, wireless fax. In 2003, Vodafone launched the
first GPRS network which was the base of Vodafone line. The mission of Vodafone is
preserve the environment and support the local communities. Its network covers 98%
of Egypt.
Regarding tax policy, the Egyptian government does not follow a stratified system of
taxation (i.e. a tax rate for every stratum); however it follows a fixed taxation system
which obliges all the corporations working in Egypt to pay a fixed percentage (20%)
of its income as a tax on its business. ETIASALT will have to account for a fixed
portion of its income as a tax for the Egyptian government regardless of the
performance of the company. This is an edge from the point of view of our company
because this is considered a moderate and fair tax rate so it will not break our back!!
Egypt offers very skilled workers, computer scientists, IT specialists, and engineers
for much lower wages than their counterparts in Europe or the Untied States.
Therefore, it is considered advantageous for ETISALAT to establish a business in
Egypt and make use of this fact. However, it should be noted that the Egyptian
government sets strict laws for employment which dictates that no person should
work manually more than 8 continuous hours, and has the right to have one day off
per week in addition to the fact that overtime is not mandatory but optional. Although
employment laws are not firmly enforced in Egypt, it is strongly recommended
(especially to multinational companies) to follow these laws in order not to affect our
stand and reputation in the market.
There is a growing trend here in Egypt to stop spoiling the environment and/or the
public’s health by either the wastes of an industry or by secondary effects of the
product itself. Since ETISALAT is basically a mobile phone network coverage
company it is crucial that our supply stations do not radiate (or at least in an
acceptable limit) any harmful radiations that may undermine the public’s health and
the environment. This may not become a problem for ETISALAT because of the
usage of the state of the art equipment so our business here will not be stopped by the
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environmental issues yet we should put it in our minds for further penetration in the
market.
Egypt is ranked as a developing country yet its economic growth is very much related
to national projects and not individual ones. National projects which affect the
Egyptian economy are like tourism and the Suez Canal. Projects like these are the
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backbone of the Egyptian economy. Due to the previous fact, the Egyptian
government pays attention to the field of tourism where tourists and who
accompanies them will certainly need a wide mobile phone coverage service on
tourism areas.
Most of the Egyptians are risk averse which is reflected in their investment in risk
free investments which yield low returns. The interest rates offered by national banks
usually range from 8.5% to 11%. However, inflation rates in Egypt are very high
(8.3% for year 2005) which consumes lots of the gains on the Egyptians investments’.
It is most probable that Egyptians will welcome the existence of a third mobile
network company in order to benefit from the competition between ELIATASLT and
its competitor which will be reflected on the price of service.
The Egyptian society is a society which holds family traditions at great esteem. The
most common family type is the normal families which consist of parents and
children. The other type of families is the extended families where three or more
generations live together. This type of families is most encountered in rural areas. The
other less common (but steadily increasing) is the nuclear families where a child lives
with a single parent and this is the least encountered in Egypt. Family relationships
are very important in Egypt and being a member of a family this entitles you to
communicate with each other on a very frequent basis and it became a norm that
people should not stay off contact for a long time otherwise they will be undermining
a very important social value which is “keeping in touch”.
It should be noted from observing the history of mobile phones in Egypt that it
became a norm that Egyptians older than 16 years old should carry cellular phones.
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And it is very important for girls in high school or university to have a cellular phone
in order for their parents to check up on them regularly when they are not home.
Most of the careers which give high salaries to fresh graduates in Egypt like the
petroleum field, field and sales engineers involve traveling a lot and probably to
unoccupied territories (like an oil well in the Western Desert). Despite the fact that
these jobs are so hard yet Egyptians rush to get a place in these jobs. These fields are
growing rapidly in Egypt and it is becoming a very vivid sector.
The number of illiterate Egyptians in the rural areas exceeds to a great extent their
counterparts in urban areas. Most of the Egyptians in urban areas do understand
Arabic (the native language) and find great comfort in using it on English. However,
highly educated may find the English language more intelligible and handy than the
Arabic language as they are used to understand and deal with it in their studies.
Usually Egypt has lots of tourists all along the year which dictates the usage of
foreign languages (mostly English) in it.
The technology that our competitors mainly use is a traditional one in the sense that
they depend on local network supply stations to enhance the signal coming from the
head quarter to the mobile users and vice versa. In networking business this
technology is traditional. It is worth noting that no mobile company uses satellite
connection. Although satellite communication technology costs a huge amount of
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money it enables the user to communicate from any place on earth provided that it is
not underground.
2.3.1.2 Gender:
In fact, gender role is a very determinant factor, when trying to segment the Egyptian
cutomers for two main reasons:
• Literacy:
Age 15 and over can read and write, but high levels of illiteracy reaching more
than 40% of the population can be found in some areas like Upper-Egypt and
Oasis especially among girls.
Unfortunately, illiterate people are not expected to be frequent users of mobile
phones as literate people who can use the phone, send messages, e-mails, tones,
logos,……etc.
• Customs and traditions:
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As part of the Egyptian culture and the Egyptian family, ladies are given less
privilege than men especially in urban areas and Upper Egypt. In such area, it is
not usual for girls to hold mobile phones.
2.3.1.3 Income:
Income is one the important factors if not the most important one, upon which the
market is segmented because it determines the buying power of each segment. In
Egypt, three categories of incomes can be differentiated:
• Low to very low income:
These are people who can not or can hardly satisfy their basic needs such as food,
transportation, and basic education.
• Medium income:
This category represents the majority of the Egyptian society. People in this
category are educated people working for companies in the private or
governmental sector, or owners of very small projects like grocery shops, mini-
markets. Most of customers falling in this category are having mobile phones;
yet, their usage of mobile phones is very limited.
• High income:
This category includes people with high incomes such as businessmen, owners of
large projects and companies. Of course, all members of high income families are
included in this category. In fact, customers falling in this category are the most
frequent users of mobile phones.
the use of mobiles among ladies not favourable. Therefore, the lowest rate of using
mobile phones can be found in such areas.
2.3.2.3 People living or working in remote areas:
For people living in places that are far from the cities or the capital or working
in remote areas like oil fields, mobile phones are very vital as it is the only way of
communication that exists there. Even with the existence of some land phones in
some remote areas like El Wady El Geded, the price of making a call using a land
phone is almost equal to the price of making the call using a mobile phone, which
makes the mobile phone more favourable to use.
2.3.3.2 Businessmen:
Mobile phone is very vital to people who own or manage a business. They use the
phone for long time to make many local and international calls.
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and increases their awareness about mobile services and how mobile phones can
serve them and facilitate their communications.
Positioning Table:
Etisalat 26 27 18 9 14 94
(satellite)
MobiNil 25 22 13 8 11 79
VodaFone 26 21 15 6 10 78
As mentioned in the Targeting section, the company will try to satisfy the gap
of the B2B, youth and new users. For businesses which seek to receive mobile phone
services in isolated areas, like at oil rigs, our service will provide a greater attraction.
In these places, engineers need mobile phones which are more reliable rather than
going to make calls at certain places or centers. Also for businessmen, or people who
travel abroad frequently, they will not be required to switch their service when they
are outside Egypt. Therefore, our service will save businessmen and engineers’ time
and effort. In this case, businessmen/engineers would go for our product, as they have
no other alternative for mobile services which provide high coverage as Etisalat’s
service does. The satellite service would work on filling this unsatisfied need of very
high demand for businessmen and engineers in Egypt. The higher coverage out of
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as an incentive which can make them change their mobile service. Another great
feature that differentiates Etisalat’s product is the low Periodical Payments feature,
which would present an allure to both completely new users and other services users
to switch their mobile service to Etisalat. Despite that the Premium Payment is
approximately the same between the three competitors where Etisalat, MobiNil, and
Vodafone would score 26, 25 and 26, respectively, out of 27%, Etisalat would provide
of MobiNil and Vodafone. Another feature that would attract both the new users and
other services users is the high discounts and offers. Our product scores 14% out of
15% in offers. Offers are going to be in the form of offering mobile services with
mobile devices of latest models at very low costs. Our service provided to youth
would be at lower prices than our competitors’ in order to grab their attention. In
addition, the company will work on having eye-catchy offers; for example, offering a
mobile and mobile service at discounts reaching 30% less than the market prices.
Accordingly, people would pay less and would purchase the mobile devices they
desire. That will assure complete success and allure to buyers, especially youth who
usually seek the newest mobile devices, bearing into consideration the nature of hyper
consumption of the Egyptian people. Not to mention that these qualities would attract
new buyers, for instance, people with extremely very low income, as it is known that
Our product is cheaper, in periodical payments, and provides more offers for new
subscribers to our service. Our product is available every where in the world,
provides better coverage, with the highest technology available in the world, and is
more suited to the needs of the customers, saving their time and effort.
2.6.1.1 Strengths:
• High capital investment: the high capital investment will help the company
• Satellite technology will enables clients to use our service anywhere. This
feature will be very useful to users, like oil engineers, who travel to work in
• Providing better customer service that aims to inform client about his system
2.6.1.2 Weaknesses:
• Very high initial costs: As the company would provide the newest
technology, attractive offers, e.g. selling phone line and cellular phone at a
very specialized price, the costs would be high relative to the revenue at
environment in Egypt. The company has not yet had enough contact with
the Egyptian public and all the environmental trends surrounding the
environment rather than just making market research which its results are
2.6.2.1 Opportunities:
The opportunities in the external environment can be classified into the following:
o The growing of out-of-town jobs like petroleum and field engineering,
and salesmen, which necessitates network coverage in their fields
24/7.
o The abundant skilled workers and specialists at lower prices than most
other countries.
o The importance of cellular phones to Egyptians socio-culturally.
o The relatively high political stability in Egypt allows the establishment
and continuation of multinational businesses.
o The welcome of the Egyptian society to a third mobile coverage
company which may break the duopoly.
2.6.2.2 Threats:
Although there are opportunities that ETISALAT may take advantage of, there are
also threats which may cause a source of unrest to the company which are:
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3.0 Objectives
• To be the company with the highest market share in cellular phone network
coverage business in Egypt within five years.
• To achieve a profit of 500 million pounds after a period of 5 years.
4.0 Strategy
Due to our offering of two different products in the Egyptian market, it is appropriate
to approach our consumers in two different strategies.
By following this strategy it is expected that the Egyptians will subscribe in (Etisalat)
service and we will gain a room in the Egyptian market. It is predicted that we will
have a tough competition at the beginning but consequently in few years we will be
able to gain a stand in the market and acquire a substantial market share.
To summarize the reason for choosing a market penetration strategy for our prime
product is that:
o (Etisalat) has a huge capital which will enable it to establish its brand
in the market despite the strong competition predicted.
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o Offering the same quality of service with a lower price will attract
consumers. At the end of the day “why pay more while you can pay
less?”
o Following a market penetration strategy will enable (Itsalat) to achieve
the objective of being the company working in network coverage with
the highest market share.
Offering another type of service (satellite connection) will have direct and indirect
impact on (Etisalat). The direct impact is related to the number of sales offered by our
company (as the only provider of this service) in Egypt while the indirect impact is a
psychological one related to the fact that (Etisalat) offers a service not offered by any
of its competitors which has an undermining value on our competitors.
Total=
6.2 Income Statement
Revenue 9000,000
Expenses 800,000
7.0 Control
7.1 Actual Implementation and Expenditure vs. Achievement of
Objectives
In order to follow up the improvement of our company we have to implement a
controlling scheme on our performance. One of the most important aspects to follow
up is the percent achieved of the stated objectives. A numerical figure has to be
assigned to the objective and then continuously referred to in order to know the
performance of the company.
In order to know how far (Etisalat) gained from the market share it is suitable to
calculate the value of our company at the end of each year and compare it with the
value of our competitors. If we have more value than our competitors then we have
highest market share.
The amount of sales can be calculated by knowing the number of our clients and
compare that number with the estimated number clients in our target market(s). After
doing that we can know our sales and our sales relative to the market.
The amount of profit is obtained by subtracting the costs and expenses from the net
sales. This is beneficial in controlling the objective related to amount of profit.
Although the main pivotal points in measuring are the ends of years, yet controlling
should be done on a more frequent basis, example every month. Because by doing
that, you are ensuring you are having a good control on your company’s status and
not jeopardizing its safety.
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As mentioned in the weaknesses of Etisalat that it will have very high initial
costs because of differentiated costs which will enable the company to widen its
consumer base. Hence, this will enable the company to recover its losses. Therefore it
is very important that Etisalat measure its actual expenditures vs. budget.
Emirates Dirham (AED). This entails the satellite coverage setup and all other fixed
assets
coming year. This includes T.V ads, magazine ads, newspapers and other media. T.V
Sales promotion: This includes the cost of making offers. Offers could be made by
Motorola, and others, where every side should discount its service or product to reach
a discount of 30%.
famous Egyptian and international singers, like Amr Diab, Samy Yousef, and others.
The company would print its logo on the tickets, and provide booths to inform people
mainly about its products. The events would be in respectable places like Al Gezira
Club, and also at popular places as we need to attract low and high income youth.
Also considering the businessmen and other VIPs the company would sponsor
concerts, for artists like Omar Khayrat, Opera shows and other classical events to
attract the high class people who travel outside Egypt frequently. Again Tickets would
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contain Logo of the product and there would be booths nearby for informing about
the qualities of the product. Popular and classic events would be carried out both once
compared to the budgeted one to assess how much control we have on over our
(Actual Expenditure/Budget)*100%
References
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