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Marketing Plan: Telecommunication

Company [ DU]

Group members:
Nouf Al Janahi


Hessa Al Ghaith 200923012
Shamma Yousif 200921539
Noora Abdulla
Reem Fahad




Instructor: Li Sun
Course: Bus 310-502

Date: Dec 5 2011

.....................................................................................................................................4 SWOT Analysis .................................................Table of Contents Executive summary ..................................................................10 Objectives and Issues ...........................................12 Marketing Strategy .....................................................................................................................................13 References ........................................................................................................................................17 Page 2 of 17 ............................................................................................................................................................................................................3 Current Market Situation analysis ....

We work to deliver our vision by using our talent. and proudly contribute to the transformation of our community. be the employer of choice for the best talent. skills and energies to connect. Above all that Du offer value and enhances their services every now and then. Du’s objectives are driven and stem from the company’s vision and mission. broadband connectivity and IPTV services for businesses. Du was first launched in 2006. inspire and reward all we touch.Executive summary Du is the second telecommunication company operating in the United Arab Emirates. which are: Vision: To enhance your life. Du also provides carrier services for business and satellite up/downlink services for TV broadcasters. Page 3 of 17 . every day.000 businesses have chosen to use Du’s services and become their customers. starting with providing mobile services which later developed in providing fixed telephony. individuals and homes. By October 2011 over 5 million people and over 40. create optimal value for our shareholders through business excellence and innovation. anytime. anywhere. Mission: We want to delight our customers.

and have around 4 billion revenue. and maintaining an annual growth rate of more than 32% in a saturated market. A statistic that was done in October 2011 shows that over 40.1. 2011). Price strategies are made by keeping the competitor price strategies in mind to provide the consumers with a competitive price. It has flourished the UAE market by acquiring around 40% mobile market share within five years of its entry. Comparing the pricing strategies of competitors is very important topic for marketers. Etisalat offers a good quality of service with high pricing whereas. broadband connectivity. which are Du and etisalat. Du consist of over 2000 employees. Those audience have different preferences. a pioneer and leading company in this region. Market description: The Telecommunication company Du considers the target audience as a priority. A few years ago. Du entered a 100 % penetration market. and IPTV services to individuals. It offers mobile and fixed telephony.000 businesses have chosen to use du services and become a regular customers (Du. The high care in enhancing the life of the customers with all honesty and creating innovations that pleases them has made the competition intense. Du is a telecommunication industry that was founded in 2006. Du's creations focus on providing the target market segment innovative and new Page 4 of 17 . taking the risk to compete with etisalat. homes and businesses. The UAE telecommunication market consists only of two cellular companies. and they consist of residential and business customers. with more than 50% locals in the seniors management teams and customer-facing staff. such as products and services that enable communication and entertainment of a high quality and at good prices. Market Situation Analysis Current Marketing situation: The telecommunication industry has widened with the strong potential. and determined marketing strategy and services that are more effective to attract more customers. du offers low prices that has attracted many customers.

and to assure a better experience to the categories that range both socially and professionally. such as using landline benefits. The different offers and lower prices provided for messaging. rewind and record of live TV. Du has the broad target segments that are : Consumers. Du offers a unique entertainment experience through du TV+ with a selection of features. Businesses. is Etisalat. Du performs at high consideration of the targeted market. including blackberries. as payment is by seconds. Also. pause. The key. The customers of du can enjoy the vast handset products. Wi-Fi. there’s no missing out on HD and 3-D television plus ”Movies on Demand “ and “On Demand Club” with your desired TV shows while at the comfort of your own home. and around the clock off-peak international rates . Targeted segments Customer Need Page 5 of 17 Corresponding feature/Benefit . The patrons of du have a variety of products and services to choose between. and improve alongside the technology to assure their comfort and satisfaction. iPhones . Moreover. simplified tariff on international calls. The emergence of a new Telecommunication company that targeted both the nationals and the emergent citizens has indeed increased the competitive power. Nokia. and different entertainment systems are major factors that increased competition. phone calls. and Samsung galaxy with many exclusive offers. such as instinctive channel browsing. Du provides packages that are more convenient for local and international communication. and only competitor of du in the United Arab Emirates.

and high definition of many packages. Provide internet services that are more convenient such as the Mobile Broadband Data Card that provides with internet everywhere. o business voice that allows users to benefit from inbound and outbound services to ease your communication needs o business mobile that provides flexible mobile strategies and mobility products to outfit the business needs. o business managed services help enhance the business IT investment value o business access is committed Enterprise and Government Carriers: Blue color workers · Aim for growth · enhance relations Develop business analytics an product Product Review: Page 6 of 17 to secure and reliable pointto-point connection for offices countrywide or globally that are there when needed. data services and television. o Provide international data networks and wholesale services to international operators. . moreover.Consumers : Households Individuals · To have improved entertainment technology · to stay in contact with the world in cheaper prices · to carry less devices rather than many · Express individualism through new technologies Business: Small and medium business · search for ease. Internet. the television services that assures movies on demand. support. controlling with forward pause and record of live TV. simplified solution where all their telecommunication requirements are met at one stop shop o present mobile and fixed voice calling. multinational corporation and telecommunication carriers.

and other applications that require high speed mobile broadband access. music downloading. · Business 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. - Symmetric high speed/ redundancy/ highly reliable - Unlimited internet up to 1Gbps with attractive prices Our company provides different mobiles products and services: · Handsets: gives the customers the chance to choose the mobile phone that suits them. - Blackberries: provides email service that automatically delivers email message/manage multiple accounts/ get online/ view documents - Nokia phones with du: offers 1 GB data free per month for 1 year - Samsung phones with du: offers 1 GB data free per month for 1 year with elite super plans - XPERIA arc with du: buying new Xperia arc with any of du’s elite plan allows the customer to get 1 GB free data every month for a whole year.Our company provides products and services for businesses such as: · Business mobile are flexible mobile plans and mobility products that suits the business needs · Business voice allow businesses to gain advantage of inbound and outbound services to fulfill their communication needs. - internet key: supported by du’s state-of-the-art HSPA+ data network/ high speed data connectivity/ managing contacts and sending and receiving SMS laptop/ Page 7 of 17 . · Mobile broadband: enables consumers to enjoy faster mobile internet browsing.

and 3-D movies on demand and TV shows. watch videos. superior channel browsing.- Micro Data SIM: high-speed data connectivity/ provides variety of attractive and unbeatable data bundle rates. chat and many other entertainment using mobile device more reasonably by subscribing to the data bundles. · Traveling abroad: du has tied up with over 430 telecom operators worldwide to ensure for their customers to stay in touch and enjoy a full ranch of services - Passport: calls within the GCC be charged at only 90 fils per minute that allows customers to enjoy talking longer for less. - Surf: offers up to 16 times more broadband - Watch: offers intuitive channel browsing. rewind. and the option of pausing. - data bundles: surf the internet. rewinding and recording live programs. high definition TV. Our company provides different home products and services: · Landline: pay by the second/ flat rates for national destinations/ off-peak international rates around the clock to all countries · Broadband: easily connect to the internet by just plugging the computer into the socket without the use of modem or a passwords and usernames. - Talk: call the world with 1 fils per second using the home landline. pause. record live TV.25/ minute for all incoming calls while roaming abroad. · TV: contains advanced features such as simplified search and display. - One world one rate: offers an attractive and unified price of AED 1. · Real broadband packages: offers premium home services at an attractive price with fast speed. Several packages from 24 Mbps to 256 Kbps with various speed is available to chose from. tailored to individual needs. instant channel change capability. Page 8 of 17 .

The foremost. · Data roaming is AED 1 per 50 KB in anyplace in the world. · Calls to any number of the visited countries starts from AED 1. and segmented strategy. Their packages are more complex and a bit tricky for a normal customer. Competitive Review: The emergence of a new Telecommunication company that targeted both the nationals and the emergent citizens. · Calls back to the UAE begins from AED 3 per minute in GCC up to AED 9 per minute according to the rest of the world. Etisalat has invested in 17 countries worldwide and caters around 94. and only competitor of du in the United Arab Emirates. phone calls. · SMS charges are AED 1 per SMS in GCC and up to AED 2 per SMS according to the rest of the world.7 million customers. has certainly increased the competitive power. Moreover. The different offers and lower prices provided for text messaging. promotion.25 per minute for all incoming calls while roaming abroad. It uses promotional strategies rather than reducing the prices.The service that we are focusing on in this paper is the On world one rate: · Offers one unified and attractive rate of AED 150 per 50 KB for mobile internet and 1. · Etisalat: is the leading telecommunication organization in the UAE market. and different entertainment systems are major factors that increased competitiveness. Page 9 of 17 .25 per minute in GCC up to AED 5 per minute according to the rest of the world. · Charges for outgoing calls and SMS are set based on areas of the world. and are overall more expensive than du. · Outgoing and incoming calls are charged on a 60 seconds unit basis. is Etisalat. Wi-Fi. etisalat offers a good quality of service using allowance.

SWOT analysis Strengths Du has three important strengths: Talk. du has attracted over 159. and segmented strategy. 2010). Users can also enjoy up to 16 times more broadband and get free 5 e-mail accounts with 1 GBmailbox each plus free antivirus and anti spyware software. pause. In the Bond Prospectus at the London Stock Exchange. Page 10 of 17 . Despite this strong competition. Users can watch whatever they want. rewind and record live TV. Du is the economical service provider. it attracts its customers by providing lower prices than etisalat. the significant number of new promotional offers introduced by Du and Etisalat during the period from 2007 to 2009 and through 30 September 2010 led to a decline in effective tariffs” (Naeem. Additionally.800 customers in the last quarter and a total mobile market of 37 percent. This feature that can be experienced with an array of advanced features such as intuitive channel browsing. where they pay by the second. Du offers bundle. whenever they want. Users can enjoy HD and 3D television plusMovies on Demand and On Demand Club with their favourite TV shows from the comfort of their homes. Du TV+. etisalat stated that “the introduction of Du in 2007 led to significant changes in Etisalat’s mobile tariff structure. 2. including segment-targeted promotions and tariffs. This package offers premium home services at an attractive price. In addition.Thus. The benefits of this package are users can call the world for as low as 1 fils per second from their home landline. Du can carve out a definite image and gain recognition among the targeted segments. but unfortunately provide lower quality. thus a majority of user prefer to call from du. allowance and discount. Surf and Watch package. 2010). the telecom will grow in the competitive market according to the increase in profits and revenues (Naeem. It offer per second pricing.

Therefore. Du charges local and international calls by the second. Du’s signal is still not available everywhere in the UAE. Opportunities Increasing demand for cheaper telecom services. which was the only telecommunication company in the UAE. and the public doesn’t really know the products and services that Du is offering. There are only two telecommunication companies in the UAE. There is an increased demand for the cheapest telecom company. which makes the market have an oligopolistic competition between Du and Etisalat. Therefore Du can bring better services with the advanced technology at a lower cost and therefore offer value-added prices. people are more interested in Du and trust it more than Etisalat. Du is more customer-oriented and 80% of Etisalat customers shifted to Du because of their prices. Du is trying to keep ahead with the fair prices by creating packages and services that are cheaper than the other telecommunication company. Not a lot of people use Du’s services because it is still new to the market. However. Better technology. Being in the 21st century a wide range of technologies have evolved with lower cost. Services not used by everyone. Weakness: Since Du is a new telecommunication company. it has learned from the mistakes of Etisalat. Threats Page 11 of 17 . Unlike Etisalat. it still has some weaknesses: Lack of signal. Du has a large number of loyal customers.Loyal customers because of fair prices.

But after Du’s success Etisalat started using the pay by second theory. and to a lesser degree with established companies. supporting projects of UAE nationals. It is expected that continued growth and competition in the telecommunications industry. which is by employing UAE nationals in the company. Even though Du’s prices are reasonable. and new competitors will enter the market. Competition in the market for telecommunications systems is highly competitive and the company expects this competition to increase. Alternative pricing arrangements. to have a strong and professional relationship with customers. 3. For example. Third-year Objective Page 12 of 17 . Objective First-year Objective The market of telecommunications was a monopolistic market which was controlled by Etisalat. Second-year Objective To increase Emiratization. and advertising for the company “du” throughout the UAE cultural places around the UAE.Downward pressure on pricing: increased competition between Du and Etisalat has lead Etisalat to use some of the same pricing strategies du is following. they still need to have alternative prices to stay ahead of the telecommunication company. causing a downward pressure on pricing. Du follows the pay by second theory while Etisalat used to use the pay by minute. develop training programs for UAE nationals. Future competition threats. Du’s aim is to be stable in the market. Alternative pricing arrangements may be required to cultivate relationships with new market entrants.

Marketing strategy Du’s marketing strategy stems from first analyzing the current market.Du’s third objective is to go globally. catering to the whole entire mass of people in the UAE. since the company is new and needs a lot of support. the UAE telecommunication industry in the past has always been product oriented. KSA. - Issues in general Since the company is entering a monopolistic market. 4. meaning Etisalat being the sole telecom provider will provide the customers with one product. Their primary consumers are both women and men from age 18 and above who need good telecom products and services at good prices. For example for mobile services etisalat use to offer two kinds of mobile plans either prepaid or monthly plan with no rewards or special offers. and other countries too. another issue is to form a confident relationship between customers and the company. Du’s secondary consumers are expats who are from the lower level that come work in the UAE and need cheaper prices to contact their family and friends back home. and no options for the consumer. Du’s marketing strategy is based on a positioning of product differentiation. and later developing marketing objectives which influences the products design offered. One product that is not custom made catering to the entire country. Bahrain. Also. du needs to spend a lot on the marketing procedure. lead to the lack of creativity in the product offered. Algeria. With no competition in the market. and du’s overall marketing approach. to open du branch in the Middle East countries such as Egypt. Positioning Page 13 of 17 .

. Plus instead of charging you for outgoing calls and SMS depending on the country you’re visiting Du have made things simple by setting up charges based on areas of the world instead. Pricing strategy One World One Rate costs AED 1. 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 expectations and needs. Their prices reflects Du’s strategy of attracting new customers as well as maintaining their loyal customers. messaging. One World One rate will enable customers to enjoy more value. This offer provides customers with peace of mind. anywhere. This offer is called One World One Rate which is a flat data pricing rate for its subscribers who are able to use mobile internet while travelling anywhere in the world. Their marketing strategy is to focus on the consumer’s need rather than just launching a product in the marketing. simplicity and convenience than ever before. It provides unified prices for all incoming calls while roaming abroad. Since most of the customers travel between their work area and home . Du will introduce a more affordable service in the upcoming years if this type of service became highly demanded. convenient and value-added telecommunication company in the UAE. du looks for great solutions by offering voice. Distribution strategy Page 14 of 17 .Du is positioning their market as the most up to date. anytime. This could be established by segmenting and later designing a product or an offer which this segment require or would be interested in. data and increasingly fixed line services to meet consumers needs. rather than having to worry about hidden international costs.25 per minute for all incoming calls and AED 1 per 50 KB for data. Product Strategy Du recognized how much the internet and phone calls is increasing in everyone’s daily lives and decided to create a new international roaming offer.

du will advertise in promote areas where large numbers of expats and other individuals who will be interested in this service. This will help in developing The One World One Rate service. simple roaming services. This is the advertisement that will be distributed: Marketing Research Since Du is committed to providing elite. A third party service provider and distributors will be part of the indirect distribution.Du’s distribution strategy will be using both direct channel and indirect channel. This will be done by analyzing the effectiveness of the advertisements. During the first months of providing this service. This will allow the service to expand and offer top quality and uncomplicated roaming services to cater the needs of both national and international customers. Throughout this research du will be able to know the degree of satisfaction of their consumers Page 15 of 17 . These areas will be in Airports and malls across the UAE. It will start by creating surveys and focus groups to analyze the consumers opinions and attitude towards the service. Advertisements in tourism and booking websites will also be part of distributing this service since the internet is an important key channel to promote services. by telephone or through our website online. The second step will be researching the awareness of this service. The One World One Rate services can be obtained from a variety of ways such as retail locations. marketing research will take place to support development and evaluate The One World One Rate service. affordable and.

dummies. Retrieved December 3.Marketing Organization Du’s senior president of marketing and customer experience is responsible for all the marketing activities in the The figure below shows the top level employees whom are in charge of different aspects of the marketing department in Du. Dummies. (2011).html Page 16 of 17 . from http://www. Subhra Das Senior President Marketing and Customer experience Mark Briers Souhail Haddji Ashok Israni John Lincoln Saleem Mohbani Vice president Vice president Vice president Vice president Vice president Strategic Marketing Marketing Fixed Consumer Segment Enterprise Marketing Digital Marketing & Entertainment References Analyzing your market situation. 2011.

Business dictionary.4568.newzglobe. W. from Naeem. (2009).). Du: The next level. (2011). (2010).physicalactivitystrategy.analysysmason.du.html http://tbreak.slideshare. Huawei. Retrieved December 13. from http://www. 2011. from http://www. (2010).businessdictionary. from Retrieved December 3.answers. Retrieved Dec 3.d.html Market situation analysis. M.pdf Inamuddin.php/community-basedawareness/marketing-action-plan/ Marketing Action Plan. from http://www. from Marketing action plan. 2011. from http://www. Comparing pricing stategies Etisalat vs Situation analysis. Newz globe. R. Retrieved December 13. 2011. Physical activity strategy. Du crushes Etisalat. Slideshare. 2011. 2011. (2011).com/tech/2011/09/etisalat-vs-du-mobile-and-internet-packages/ http://www. from http://www.emoonlighting. 2011.Dam. E-moonlighting. (n. Retrieved December 3. Page 17 of 17 .huawei. (2010). 2011. Retrieved Dec 3. Retrieved December 11. (2011). Retrieved December WikiAnswers.