PRINCIPLES OF MARKETING: ETISALAT

Executive Summary

Marketing strategy of a company refers to the strategy of operating its planning and processes to
achieve marketing goals. The success of any company lies in its effective marketing strategy that
is planned to be more efficient in achieving organisational objectives. This paper highlights the
principles of marketing strategy, discussing some significant aspects, including the market,
opportunity, product, pricing, distribution, and promotional strategy. The entire study has been
made focusing on the marketing strategy planning of a famous UAE-based company named
Etisalat. The study discusses the marketing strategies, current situation, product pricing,
communication and promotional strategy of Etisalat. Moreover, the paper also suggests some
significant recommendations that will be beneficial in improving marketing strategies and
gaining strengths to survive in the market competition.
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Table of Contents
Executive Summary.........................................................................................................................2

I. Introduction..................................................................................................................................4

a. Company background..............................................................................................................4

II. Situation Analysis.......................................................................................................................4

a. Market Analysis.......................................................................................................................4

b. Analysis of Current and Potential Competitors.......................................................................6

c. Environmental Analysis...........................................................................................................6

III. Marketing Plan...........................................................................................................................7

a. Description of the market opportunity.....................................................................................7

b. Product Strategy.......................................................................................................................8

c. Pricing Strategy........................................................................................................................9

d. Distribution Strategy..............................................................................................................10

e. Marketing Communication and Promotional Strategy...........................................................11

IV. Financials.................................................................................................................................11

V. Recommendations.....................................................................................................................11

VI. Conclusion...............................................................................................................................12

Reference List................................................................................................................................13
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I. Introduction

The success of a company is hugely dependent on the effectiveness of its marketing strategy.
When the marketing strategy of a company is compelling enough, the chance of winning the
market competition is also high for that company. This study focuses on discussing the
marketing plan of Etisalat using the marketing mix.

a. Company background

Etisalat is one of the most famous telecommunication companies across the UAE. It is a
multinational company headquartered in Abu Dhabi. The company is considered as one of the
best service provider companies across the world. Etisalat operates its business in more than 15
nations across the Middle East, Africa, and Asia. In the year 2014, the company ranked as the
14th largest company in mobile networking in the world. The total revenue of the company is
more than AED 55 billion. After significant analysis, it has been proved that the marketing
strategy of the company is one of the biggest reasons for this massive success of the company.
However, the marketing strategies of the company can be improved to a greater extent by
making an effective marketing plan (Etisalat UAE, 2020).

II. Situation Analysis

Before setting a marketing plan for any company, it is necessary to analyse its current situation.
In the situation analysis process, the market situation, competitors and the environment of the
company must be examined (Kingsnorth, 2019). As this study focuses on making marketing
plans for Etisalat, the situation analysis of the company is discussed below.

a. Market Analysis

The market situation of the company can be analysed by focusing on the market segmentation of
the company. In order to understand the types of customers and their behaviours, identification
of the market segmentation is very significant (Key & Czaplewski, 2017).
Segmentation approach
The marketing segmentation of Etisalat depends on gender, age, location, occupation, income,
lifestyle, and behaviours of the customers. Based on these factors, the market segmentation of
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the company is divided into four significant segmentations such as geographic segmentation,
behavioural segmentation, demographic segmentation, and psychographic segmentation
(Kingsnorth, 2019).
Geographic segmentation: This segmentation distinguishes the customers or market based on
geographic locations such as city, village, region and country.
Demographic segmentation: When the officials of the company divide the market according to
the demographic aspects like gender, age, culture, ethnicity, lifestyle and income, the
segmentation is known as demographic segmentation (Palmatier, 2018).
Behavioural segmentation: When Etisalat considers its customers or market based their buying
pattern, including benefits sought, usage frequency, brand loyalty and usage occasions, the
market segmentation is considered as the behavioural segmentation (Etisalat UAE, 2020).
Psychographic segmentation: In psychographic segmentation, the company chooses its
customers according to their attitudes, beliefs, interests, lifestyles, traits and values.

Figure 1: Market Segmentation

(Sources: Palmatier, 2018)
Segment Potential
Each of the market segments of Etisalat is significant for the marketing improvement of the
company. The main priority of the company is to provide the best quality services or products to
every kind of customers. Though the market segmentations of the company distinguish its
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customers, Etisalat considers every customer with the same values and tries to provide better
services to the customers (Etisalat UAE, 2020).

b. Analysis of Current and Potential Competitors

Presently, market competition in the telecom industry is fierce in the UAE. Every telecom
company is trying to beat other companies and become the winner of the severe market
condition. Etisalat also has some powerful competitors that create a robust competitive situation
for the company. The top competitors of Etisalat are DU telecom, MTN Group, Telkom,
Ooredoo and others (Ameen & Willis, 2016).
DU telecom
This company is considered as one of the top competitors of Etisalat. It is a public company
established in Dubai. It is also a telecommunication company that provides excellent quality
services to customers across the world. The total revenue of the company is more than 3.5 billion
(Ameen & Willis, 2016).
MTN Group
It is also one of the strongest competitors of Etisalat. Like Etisalat, the MTN group also involves
providing Fixed-line Telecommunications across the world. Though this company has fewer
employees and less revenue than Etisalat, the company gives a fierce competition to Etisalat
(Ameen & Willis, 2016).
Telkom
In the telecom industry, Telkom is considered as one of the biggest rivals of Etisalat. It was
founded in 1991 in Centurion. It is also a famous Fixed-Line Telecommunication company
which generates $3.3 billion in revenue (Ameen & Willis, 2016).
Ooredoo
In the UAE, Ooredoo is also regarded as one of the biggest rivals of Etisalat. This
telecommunication company gives an intense competition to Etisalat in service quality,
marketing strategies and customer satisfaction (Ameen & Willis, 2016).

c. Environmental Analysis

In order to analyse the situation of Etisalat, it is essential to analyse its environment situations
including society, technology, industry and economy.
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Society
No organisation in this world can operate its business ignoring society. When a company like
Etisalat wants to gain success in its goals, it has to consider the social factors like culture, beliefs,
gender, lifestyles, social norms and values, social demands and more (Zhu & Gao, 2019).
Etisalat also has to consider social factors in operating its business successfully.
Economy
When a company is going to start its business, it must evaluate the economic factors and its
current situation. The company must consider the monetary policies, inflation rates, fiscal
policies, rate of foreign exchange and much more (Samiee & Chirapanda, 2019). Etisalat also
needs to focus on the economic conditions of its home and host countries.
Technology
Technology is a significant factor that increases the performance and efficiency of Etisalat to
produce excellent quality services or products. If a company like Etisalat seeks success in the
fierce market competition, it has to be updated with the technological inventions that are useful
for the company (Morgan et al. 2019).
Industry
According to the viewpoint of Samiee & Chirapanda (2019), to establish a sharp brand image in
the market, every company must evaluate the current situation of their industry. In order to
operate the business and become the winner of fierce market competition, Etisalat has to be
updated with the current demands of the telecom industry.

III. Marketing Plan

a. Description of the market opportunity

After analysing the market situation, it can be said that Etisalat has excellent market
opportunities in the Telecommunication business. The company is the most dominating company
in the telecom industry in the UAE. The customer base of the company is also vast enough to
beat the competitors in the fierce market competition (Etisalat UAE, 2020). The strong and
sustained economic condition of the UAE fuels the company to spread its business in a broader
range. There are also a considerable number of young customers connected with the company
making it the leading telecom company in the region. The technological advancement leads the
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company to produce the best quality services or products that give the toughest competition to
the competitors (Chaffey, 2017).
Market targeting of Etisalat
After segmenting the market into different groups, the company needs to target particular
segments whose demands or expectations will match the capabilities and resources of Etisalat.
The market targeting can be conducted by recognising the market requirements, market
effectiveness and the growth of potential market segments. It will be worthy for Etisalat to target
its market segments based on the characteristics, demands, company's resources, growth and
capabilities (Etisalat UAE, 2020). In order to gain more profit in business, Etisalat mainly targets
the entire market. Based on the marketing segmentation, the company targets its customers or
market and gives the effort to fulfil the market demands. This fact will lead the company to
achieve maximum consumer satisfaction and attract more customers to connect with the
company. The low-cost strategy of Etisalat has helped it a lot to set the market targeting. Etisalat
benefits its customers with cheap mobile services which increase the customer base of the
company to a greater extent. Moreover, the company incorporates many target customers like
business callers, casual callers, international callers, expatriate callers, late-night callers and
more (Etisalat UAE, 2020).
Product concept of Etisalat
Etisalat is a famous telecommunication company which produce world-class telecom services or
products. Bringing innovation and availability is one of the most significant product concepts of
Etisalat. The company involves creating digital transformation by facilitating governments and
enterprises to use advanced technological services like cybersecurity, mobile services, internet,
cloud, artificial intelligence, omnichannel, wireless internet access or broadband services and
more. The company also involves providing post-paid and prepaid mobile services that hugely
satisfy the customers (Etisalat UAE, 2020).

b. Product Strategy

From the very first beginning, Etisalat has been giving its efforts to produce the best quality
telecommunication services that would achieve maximum customer satisfaction. The company
has the vision to follow the product diversification concept and achieve success in its desired
goals by producing excellent quality services or products. In the product concept section, it is
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mentioned that the company involves creating telecommunications-based services or products.

The products of Etisalat include 3G and 4G internet and mobile services, wireless internet
connection, innovative software, cybersecurity and Big Data & Analytics. Besides, the company
also involves providing many other telecom services including mobile cam, mobile TV, area info
services, credit transfer and much more (Etisalat UAE, 2020).
The company has a considerable number of potential customers as the innovative and
extraordinary products of Etisalat benefit the customers to a greater extent. The low-cost mobile
services, 3G & 4G networking services are continuously benefiting the customers. The products
and services of Etisalat are better in quality and readily available. The company has established a
sharp brand image in the marketplace by producing world-class products or services. Till the
date, the products of Etisalat give fierce competition to its competitors and are continuously
increasing its customer base (Etisalat UAE, 2020).

c. Pricing Strategy

Pricing is one of the essential components of marketing as it influences the product positioning
of any company like Etisalat (Wood, 2017). The popularity of a product much depends on its
pricing. If the pricing of the products or services is effective, it will be easy for every company to
attract more customers to purchase the products or services (yousef Alkhateeb, 2018).
Basic Price Strategy
In order to attract more customers and to make the products accessible, Etisalat has implemented
the value-added strategy of pricing. This pricing strategy leads the products or services of the
company to be relatively high in price. However, the high price is not an issue for the company
as it distinguishes the products of Etisalat from its competitors. It also increases the customers'
trust in the quality of products or services. Moreover, the company also follows the
psychological pricing concept, which aims to set its pricing based on the psychological factors of
the customers. The company uses this strategy in its iPhone marketing (Etisalat UAE, 2020).
Competitor issues
When a company is going to set its pricing strategy, it must evaluate the pricing strategies of its
competitors (Ameen & Willis, 2016). The pricing strategies of competitors can beat products of
Etisalat in the market. There are multiple strong competitors of Etisalat; their products give
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fierce competition to its products. The company has to be very aware of the pricing strategies of
the competitors and set its pricing strategy more effectively (Ameen & Willis, 2016).

d. Distribution Strategy

Distribution strategy is also another significant component of marketing strategy planning. As

mentioned by Palmatier & Sridhar (2017), to distribute the products or services of a company,
there should be an effective distribution strategy and distribution channels. Distribution strategies
will help the company to distribute its products among the suppliers and market segments. In
order to distribute the products to the targeted market segments, Etisalat needs to choose
effective distribution channels and distribution partners. The company must operate its
distribution through direct or indirect distribution among the retailers and wholesalers (Etisalat
UAE, 2020).

Figure 2: Distribution structure of Etisalat

(Source: Etisalat UAE, 2020)

The company has to choose its distribution channels based on the market segments, market
requirements and competitors. It is also crucial for the company to set its distribution strategies
after evaluating the distribution strategies of its competitors. Moreover, the strategy makers of
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the company must assess the distribution cost and set the strategy expecting more profit amount
(Etisalat UAE, 2020).

e. Marketing Communication and Promotional Strategy

Using the communication mix, Etisalat has established an effective marketing communication
strategy. The marketing communication strategy of the company assists it to advertise, promote
sales, and operate other marketing processes. Etisalat has established an integrated marketing
communication system by adopting traditional and emerging marketing communication
techniques. Traditional techniques include public relations, advertising, and sales promotion. The
company advertise its products through various platforms like TV, radio, social media, and
others (Etisalat UAE, 2020). Moreover, using Information Technology, Etisalat improves its
marketing communication as well as promotional strategies. Presently, the company is
improving its promotional and marketing communication strategies with the help of the above-
mentioned tools and techniques, keeping the competitor issues in mind.

IV. Financials

Etihad is one of the financially strongest companies in the world. The innovative marketing
strategies, pricing strategy, communication strategy and production management of the company
help it to gain a huge amount of profit every year. Estimation proves that the annual revenue of
Etisalat is more than $14 B. the profit amount of the company exceeds the marketing and
provision cost to a greater extent; this fact leads the company to earn a huge amount of profit
from the market. The great quality of products and services has increased the market range of
Etisalat increasing its earnings to a greater extent. Gradually, the company is entering the top-
ranked companies like Google, Amazon and others (Etisalat UAE, 2020).

V. Recommendations

The marketing strategy of Etisalat is indeed world-class and innovative to bring success for the
company. However, to make these marketing strategies more effective and improve their
implementation, some significant recommendations can be given to the managers of the
company.
● Review the market condition continuously
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● Recognise the potential customers as well as competitors

● Understand the market demands
● Take the advice of marketing experts in strategy setting
● Evaluate the internal and external situation of the company
● Utilise the market opportunities
● Set the pricing strategy after evaluating the strategies of the competitors
● Produce good quality services and incorporate world-class communication as well as
promotion strategies

VI. Conclusion

After analysing the above study, it can be concluded that the effectiveness of the marketing
strategy decides the efficiency of a company to gain success in its desired goals. Based on the
marketing strategies of the famous company Etisalat, this study describes the principles of
marketing strategy that can bring success for every company. In order to be effective in
marketing, every organisation needs to follow the marketing principles and set an innovative and
extraordinary marketing strategy for organisational improvement. The study proves that when a
company is stronger in its marketing strategies, it becomes easy for the company to win the
market competition very easily.
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