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Problem statement

Sub problem statement/question

Hypothesis statement

Demarcation of terrain of study(assumption ,limitation & delimitation)

Definition of terminology

Indication of the importance /significance of study

Review of related literature

A budget

Researcher qualification

A resource list

enviromental factors affecting mobile phone marketing strategy

The success of a particular marketing strategy depends on the concept of



What are the environmental conditions that affect the low price marketing strategy
in the mobile phone Industry in Kenya?


To establish the environmental conditions which affect the low price marketing

Strategy in the mobile industry in Kenya


H0 : The low price marketing strategy in the mobile phone industry depends on the


H1: The low price marketing strategy in the mobile phone industry doesn’t depend
on the environmental conditions

In the study the unit of analysis is the firm. The other key conceptual issues that
need to be looked

at are the indicators of performance for the low price marketing strategy in the
mobile phone industry

The research will be carried out using safaricom limited as the firm for the unit of
analysis and Nairobi region sales territory as the representative test sample

This is because in the Safaricom (K) Ltd Nairobi region sales territory it is more
convenient for the research in terms of transport and also it forms a good
representative of the sample needed for this study.

Limitations of the Study

Some of the possible hindrances to this research can be lack of enough finances,
short time frame and none response. Also because of anxiety about the process,
respondents may not be willing to give information because they fear rebuke from
the organization. They may think the data collected from them may be used
against them by competitors of the organization.

I will try and mitigate these limitations by seeking support from Safaricom limited
and personal savings. Also try to maximize on time frame and probe the
respondents deeply into their feelings on the effects of the acceptability of a
product due to the low price strategy and the benefits of the research to them and
also assure no disclosure of respondents’ identity.
Indication of the importance /significance of study

The findings of this study will be of be of value and interest to the following groups:-

1) The organization

2) The sales people

3) Academicians and other researchers

The research is going to assist academicians and other researchers, who may be
inspired by this project to conduct further research into other areas, eg
environmental imperatives affecting other marketing strategies eg niche market
strategy. The research will also assist organizations to know whether its appropriate
for them to employ the low price strategy in the Kenyan market or similar


This research is intended to compare the marketing strategies of

telecommunication industry in Kenya because telecommunication
industry is vital for economic growth.

This thesis tries to analyzes low price marketing strategy and the find out
the environmental imperatives which affect the strategy in the Kenyan
market .


Telecommunications has a long and creative history. Beginning with the

use of smoke signals, effective means of communication human being had
used range from the use of sound by such things as drums and horns, to
flags, lamps and special towers, and to the modern creation of telegraphs,
radio, television and eventually the internet.

Nowadays telecommunication is a fascinating fast-growing industry that

affects each and every aspect of our lives including simple voice telephone
calls, access to the Internet, high speed data communications, satellite
communications, surfing the World Wide Web, fax transmissions, video
conferencing and cable television.

The Marketing Environment

The general marketing environment consists of all those factors influencing the marketing
organisation. The internal environment or proximate Micro Environment includes all factors that
are within the control of the organisation. It is also important that an organisation studies its
external or Macro environment. The Macro environment includes (generally) uncontrollable
forces outside the organisation which may pose the most important opportunities and threats.
The Micro Environment

The term Micro Environment denotes those elements over when the marketing firm has control
or which it can use in order to gain information that will help in its marketing operations. It is
important to re-emphasise that the objective of marketing philosophy is to make profits trough
satisfying customers. This is accomplished through the manipulation of the micro environment
variables over which the company has control in such a way as to optimise the objective.

The main components of the proximate micro environment are

• Customers

• Competitors

• Suppliers

• Publics

• Distribution


A. Consumer Markets (Buying for personal use)

Consists of individuals buying goods or services for personal consumption.

B. Business Markets

People Buying on behalf of the organisation.

Ex: Buying a new ice cream machine for gelateria.

C. Government Markets
These include departments that buy goods to provide public services.
Ex: Buying computers for government offices

D. Reseller Markets
These buy goods and services to sell them to other markets

Ex: C.Calleja
E. International Markets

Customers in the foreign market.

Ex: Buying from the Internet.

Any one from A, B, C, D are found in the international market.


Direct competition examples.

Go and Vodafone

Fitness and Special K

Muller and Danone

Algida and Motta


Indirect Competition Examples

When you have something replacing another.

(Coca cola to water) (Gas to electricity)

Who are our Competitors?

What products and benefits are they offering?

These are the questions and answers that an organisation must ask and find an answer in
analysing the competitive environment the answers must all be compared with what the
organisation is going at a point in time that is its offerings, special promotions visibly in the
media etc...

It must be said that there are only few firms which do not have any competition, like for example
enemalta having said so any company must also consider indirect competition when studying
the competition environment. Indirect competition is generally brought about by substitute
products. Only when management and org have clear understanding of the factors and forces
making up the competition environment can they hope to compete efficiently.

Suppliers are business firms and individuals who provide goods and services to other
organisations. Nearly every organisation whether engaged in manufacturing, whole selling or
retailing is likely to have suppliers. Large firms are likely to have many suppliers.

Purchasing is regarded a very important management function in an organisation. The main

reason for this is the firms must be able to purchase goods and services are an acceptable price
and quality. The organisation must also ensure that its suppliers are capable of offering an
aceptable level of service on matters such as.

A. Delivery Date

B. Reliability

C. Price

D. Quality

E. Stock Availability

F. After Sales Service

G. Credit Facilities.

The buyer/supplier relationship is 1 of the economic interdependence, that is, both parties need
each other for their commercial well being and profitability. Some companies tend to opt for
multiple sourcing that is they buy from different suppliers to avoid over dependence on the other
hand other organisations prefer to keep costs as low as possible with stock and supplier being
available when needed.

Distribution (Place)

Manufacturer Middle People Consumers

The Distribution environment entails the link between the marketing organization and the final
consumer. Some organisations opt for a direct marketing option. That is, the company sells
directly to the end consumer. Other organizations use some other forms of intermediate
distribution system this could include agents, whole sellers and retailers besides other things.

Publics (Stake Holders)

Stakeholders are anyone who may have an interest in the company

Internal stakeholders are people working within the company

Connected  Bank (Loans), Shareholders, Insuriances

External  The general public.

A publics or stakeholder is any group of people or 1 person that has an actual or potential
interest on an organization’s ability to achieve its objectives.

A. Financial Publics

Influence the company’s ability to obtain funds

B. Media Publics

Media Publics are those that carry news, features and editorial opinions.

Ex: News papers, magazines, radios and TV stations.

C. Government Publics

Management must take government developments into account. Marketers often consult
to company’s lawyers on issues on products safety, truth in advantages and other
matters. Government is generally concerned about companies because of tax

D. Citizen Action Publics

A company’s marketing decision may be questions by consumer organizations,

environmental groups, minority groups and others. A company’s public relations market
can help to stay in touch with consumer citizen groups.

E. Local Publics

Every company has local publics such as neighbourhood residents and community
organizations. Large companies should ideally deal with the community, attend
meetings, answer any queries and contribute to worthwhile causes.

The Macro Environment

The P.E.S.T. Analysis.

Political Environment

Marketing decisions are strongly affected by developments in the political environment. The
political environment has its own system or framework, it regulates society therefore it regulates
the system. A political environment will have the following changes affecting a business.

1. Policies and Laws

2. Inflation (Increase in prices)

3. Taxation (V.A.T, eco tax....)

4. Unemployment and employment levels

5. Local Councils

6. Authorities

Marketing Management must be on the lookout for changes in government policies and
legislations which can change due to a change in government. Changes in government and
policies will affect a society as a whole and may influence the operations of an organisation.
Firms operating in international markets must analyse international political develops to see
what effect it has in its international market.

Although generally the organisation has to adopt themselves to the political environment they
can also influence the political climate, this could be done trough the following:

1.Federation of Industry

2.Chamber of Commerce

3. GRTU (General Retailers and Traders Union)

Such organisations discuss new policies with the government and work for an agreement in the
interest of the sector

• Change in employment law

• Discrimination Act
Economical Environment

Marketing organisations must understand the effects on the many economic variables, these

1. The level of inflation

2. Interest Rates

3. Employment and Unemployment levels

These are of concern to the marketing firm because many times they have a direct effect on
costs, prices and demand. The level of domestic unemployment affects the demand for the
consumer wants fall then chance is that the demand for industrial goods will decrease as well.
The level of inflation is also bound to effect cost, price and demand.

Inflation – When the product is a luxury product the likely hood of demand will decrease, but
when it is a necessity product the demand will be constant as long as no cheaper replacements

Social (Cultural) Environment

This is perhaps the most difficult element out of the pest analysis, manifesting its self in
changing tastes, purchasing behaviour and changing patterns. The type of goods and services
demanded by consumers is a function of their social conditioning and their consequent attitudes
and believes

Core based values are those firmly established within a society and as therefore difficult to
changes they are transmitted trough family, church and the institutions of society which acts as
relatively fixed parameters within which marketing firms are forced to operate. Secondary
cultural values however tend to be less strong and therefore more likely to undergo change.

Some changes that have occurred in the lass 20 – 30 years:

1. Use of plastic money

2. Use of personal credit

3. Fast food
4. Health consciousness

5. Broken families

6. Children outside marriages

7. Gay families

8. Working women

Within any particular culture one finds various sub-cultures having distinguished characteristics.
Members of these sub-cultures tend to have common methods of behaviour such sub-cultural
groups may include:

• Religious groups

• Cultural/Racial Groups

IKEA was not shy to support the gay community. In 1994 they were running an advertisement in
the US using 2 Gay man shopping for a dining room table together.

Technological Environment

Technology is a major variable which has influenced the development of man of the products
we take for granted today like computers and T.V’s

Marketing firm’s themselves play a part in the technological process, many having their own
research department thus playing a part in innovating new developments.

One example of how technology change has affected marketing activities is in the development
in the electronic point of sale (E.P.O.S). The laser checkout reads barcodes on the product
being purchased and stores information that is used to analyse sales and re-order stock as well
as giving customers printed read out of the items purchased and the price changes.
Manufacturing of fast moving goods particularly packaged grocery products have been forced to
respond to these innovations by incorporating the barcode on their products, labels and
packaging. In this way a change in the technological environment has affected the products and
services produce and the way the businesses carries out their operations.