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Title: market plan


1
  • INTERNATIONAL MARKETING
  • AAGSB MBA PROGRAM
  • DR. AYMAN SHAWKY
  • JANUARY 2013

AHMED FAROUK AHMED MAHER KHALED TAYEL MAHMOUD
EZZAT MOSTAFA SHAMA SAMEH AHMED HASSAN
2
How Mobile Technology is shaping the African
Market
3
4 Whys
  • Why Telecommunications Industry?
  • Revenue Worldwide 2.1 trillion in 2012, to
    reach 2.7 trillion in 2017.
  • 6 billion mobile subscribers of the 7 billion
    world population.
  • Why Vodafone?
  • The world's second-largest mobile
    telecommunications company.
  • More than 450 million subscribers worldwide.
  • More than 75 billion yearly turnover.
  • More than 12 billion average yearly profits in
    the last few years.
  • Vodafone owns and operates more than 70 networks
    all over the world.

4
4 Whys
  • Why Africa
  • 14 of world population, (1billion).
  • More than 40 of Africas population is younger
    than 14.
  • Africa is the last great, untapped
    telecommunications market with less than 70
    penetration.
  • 700 million mobile subscribers in 2012, to reach
    800 in 2014.
  • The world's second largest mobile market by
    connections after Asia.
  • The fastest growing mobile market in the
    world.Average 7 GDP growth.
  • More than 60 billion revenue from Telecom
    industry.

5
4 Whys
  • Why Nigeria
  • The 6th most populated country in the world (170
    million).
  • Only 60 mobile market penetration.
  • Fully liberated telecom market.
  • Young country average age is 18 years.
  • Largest African Internet users no.
  • 2nd highest GDP in Africa.

Ref. http//en.wikipedia.org/wiki/
6
Mode of Entry
  • FDI by acquisition.
  • The alliance between Vodafone and Telecom Egypt
    will acquire 75 of MTEL-NITEL Nigeria.
  • Change its name to Vodafone Nigeria.
  • The Nigerian government will keep a 25 share
    (its a ).
  • Vodafone will own 51 of Vodafone Nigeria,
    Telecom Egypt will own 24.
  • In 5 years the alliance will end (2013-2017).

7
Mission and Vision
  • Mission
  • Our goal is to be the communications leader in an
    increasingly connected world. We aim to provide
    the kind of innovative and responsive service for
    which the Vodafone Group is recognized worldwide.
  • Vision
  • Our vision is to be the absolute number 1
    communications provider in Nigeria by focusing on
    customer satisfaction and innovation.

Ref. http//www.vodafone.com.gh
8
Goals
  • Domestic 
  • International
  • Nigeria
  • Qualitative
  • To be no. 1 mobile operator in Nigeria when it
    comes to the quality of network.
  • To offer high quality fiber and fixed voice and
    broadband services to both firms and individuals.
  • Quantitative
  • 25 market share or 40 million mobile subscribers
    within 5 years.
  • 5 million fixed lines subscriber within 5 years.
  • 1 billion revenue within 5 years.

9
Our Products
  • Mobile
  • Voice
  • Data
  • Fixed-Line
  • Voice
  • Broadband
  • Positioning
  • Best data offers.
  • High quality of the network.
  • High integration between mobile and fixed
    (unified).
  • Strategy
  • Differentiation

10
Market Description Nigeria
11
PESTEL - Political
  • Stable democratic civilian rule since 1999.
  • Boko Haram armed movement is conducting an
    insurrection in the mainly Muslim north.
  • Nigeria is keen to attract foreign investment.
  • Security measures needed.
  • Corruption effect.
  • 137th ranked as best countries for business.

12
PESTEL - Economic
  • Average 7 GDP growth for the last 8 years.
  • OPEC 8th oil production country.
  • Economy resources diversification trend.
  • Middle income country.
  • one of the fastest growing communications markets
    (5th largest economy 2050 by nominal GDP).
  • Still with 60 penetration.
  • 160 Nigerian naira 1

13
PESTEL - Socio-cultural
  • 25 of African population high growth rate.
  • 50 of Nigerian below 18 years old.
  • 30 illiteracy (need technology education).
  • Rich ethnic diversity (250) (hausa, yoruba and
    igbo).
  • Majority of people live in rural area.
  • 50 Muslims, 40 Christians.
  • High context community with ethnic and sectarian
    violence.

14
PESTEL - Technological Environmental
  • 3G Network expansion.
  • Fiber optics cables for transmission system.
  • International submarine cables 2009.
  • 4G LTE need for larger bandwidth.
  • Available 14 million land line capacity.
  • New tech - low power consumption emissions.

15
PESTEL - Legal
  • Continuing liberalization of VoIP (voice over
    internet protocol.
  • Privatization of national telecom operator Nitel.
  • Unified licensing introduced.
  • Sharia law in northern states.

16
Other Factors
  • Nigeria consists of 37 states with 8 cities over
    million population.
  • 48 urban 52 rural.
  • 521 language with English official language.
  • Labor force is about 57 millions 2/3 of them in
    agriculture.
  • Migration rate -0.3 per 1000 a year.

17
Culture of Nigeria
  • we explore the Nigerian culture through the lens
    of the 5-D Model

Ref. http//geert-hofstede.com/nigeria.htm
18
Culture of Nigeria
  • Power Distance (PDI)
  • Nigeria scores high (score of 80).
  • Individualism (IDV)
  • Nigeria, with a score of 30 is considered a
    collectivistic society.
  • Masculinity / Femininity (MAS)
  • Nigeria scores 60 on this dimension and is thus a
    masculine society.
  • Uncertainty avoidance (UDI)
  • Nigeria scores 55 a High Uncertainty avoidance
    culture.
  • Long term orientation
  • Nigeria scores 16, making it a short term
    orientation culture.

19
Culture of Nigeria
20
Customer Profile Analysis
  • Customer Satisfaction Among The Demographic
    Groups
  • Gender
  • Male are easier to satisfy than Female, due to no
    personal interaction with sales process.
  • Employed/ Unemployed
  • The unemployed customers are easier to satisfy
    than the employed ones.
  • Age
  • The old people are more satisfied than the young
    people.
  • Income level
  • Customers living within the low-income areas are
    more satisfied than those in the high-income
    areas.

Ref. CUSTOMER SATISFACTION IN THE MOBILE
TELECOMMUNICATIONS INDUSTRY IN NIGERIA. DR.
ENIOLA SAMUEL Institute of Technology,
Department of Management, Ronneby, Sweden
21
Customer Profile Analysis
  • Network Quality
  • Network quality is the most significant of all
    the mobile service attributes in Nigeria.
  • The customers' perception strongly influences
    their evaluation of mobile operators.
  • Billing and Customer Care
  • Its meaningless without aligning it with other
    mobile services attributes.

22
Prospective Buyers
23
Prospective Buyers
  • The market is divided into urban and semi-urban,
    and rural market.
  • Tele-density in the urban is about 65 while semi
    urban is about 45 and rural is less than 15.
  • Vodafone has the opportunity to gain the most of
    remaining percentage in the different area by
    introducing high level of network coverage.
  • The age of purchasing among young Nigerians has
    lowered in just a few years 18-19 to 14-15.
  • For the choice of operator, the factors were
    found to be features and brand components of
    pricing, quality, and influential persons.

24
SWOT Analysis
25
SWOT - Strengths
  • Vodafone is the worlds most trusted service
    brand.
  • New technologies in big cities (FTH ,MSAN and
    4G).
  • Using infrastructure of NITEL and MTEL.
  • High experience in Ghana and other African
    countries.
  • TE have experience 150 years in fixed lines.

26
SWOT - Weaknesses
  • The large number of current NITEL-MTEL employees.
  • Lack of managerial capabilities and leadership
    skills in Nigeria.
  • Poor infrastructure of NITEL.
  • Initial large cost of the acquisition.

27
SWOT - Opportunities
  • Large chance to have large number of Broadband
    subscribers.
  • Increased desire of youth population for the use
    of broadband.
  • Average age in Nigeria is 18 years.
  • Good opportunity to increase fixed line
    subscribers ( current less than 500,000 sub.).
  • Bad quality of CDMA technology is good
    opportunity to introduce fiber networks.
  • Introducing Fourth Generation (4G LTE) broadband.

28
SWOT - Threats
  • Intense competition since there are the fourteen
    licensed operators.
  • Change in regulatory policies on telecoms firms
    by government.
  • Change surprises in the political situation in
    Nigeria.
  • Lack of security threatens installations and
    facilities ( Boko-Haram , Lack of security in
    rural areas)
  • Poor economic conditions may prevent people from
    buying new phones or recharge their phones.

29
Competition
  • In September 2012 the penetration rate was
    estimated at 60 over a population estimate of
    170 million.

30
Competition
31
Market Potential
  • By using the Top Down approach to compute
  • The potential no. of subscribers.
  • The potential revenue.
  • Taking into consideration
  • Total revenue of telecom companies in Nigeria in
    2012 18bn
  • No. of subscribers 100mn
  • Average age of Nigerians 18 years
  • Expected increase in no. of subscribers of the
    rural and urban areas
  • Year 2013 10 Year 2015 20
    Year 2017 30
  • Expected increase in no. of subscribers as some
    people will be older and become mobile users
  • Year 2013 10 Year 2015 20
    Year 2017 30

32
Market Potential
33
Market Potential
34
Market Potential
  • References
  • www.mtnonline.com
  • www.gloworld.com
  • www.ng.airtel.com
  • www.etisalat.com.ng
  • http//www.slideshare.net/rosenlykke/market-estima
    tion
  • http//www.slideshare.net/de-pe/course-7-market-si
    ze
  • http//www.brekiri.com/blog/77/the-secrets-of-mark
    et-sizing/
  • http//library.rrc.ca/subjectguides/market/page_16
    .htm

35
Operational Plan
  • Operational Plan consists of the following
  • Market Penetration.
  • Promotions.
  • Distribution.
  • Pricing.

36
Market Penetration
  • Creative head-hunting.
  • Developing a solid customer quota.
  • Gaining competitors' customers.

37
Promotions
  • NCC protection.
  • Market segments covering.
  • Samsung Offers.
  • Huawei Offers.

38
Advertising
  • Football stars in our advertising campaigns.
  • ZooZoo Character.

39
Distribution
40
Distribution
41
Pricing
  • Complying with NCC.
  • Competitive advantage with the low
    Fixed-to-mobile rates.
  • Unified bill for fixed, mobile and broadband with
    special offers.

42
Conclusion
  • Telecommunication revolution leads the
    international economies.
  • The liberalization of the telecommunications
    market in Nigeria makes it highly competitive and
    attractive.
  • The Nigerian telecom market is still green and
    under-served.
  • Vodafone has a very high potential in the
    Nigerian telecom market.
  • Vodafone is highly capable of penetrating the
    Nigerian market and promoting itself as the
    biggest and first unified telecom provider.

43
Thank You
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