market plan

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

AHMED FAROUK AHMED MAHER KHALED TAYEL MAHMOUD
EZZAT MOSTAFA SHAMA SAMEH AHMED HASSAN
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How Mobile Technology is shaping the African
Market
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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.

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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.

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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/
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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).

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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
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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.

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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

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Market Description Nigeria
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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.

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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

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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.

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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.

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PESTEL - Legal

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

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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.

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Culture of Nigeria

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

Ref. http//geert-hofstede.com/nigeria.htm
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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.

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Culture of Nigeria
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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
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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.

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Prospective Buyers
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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.

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SWOT Analysis
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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.

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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.

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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.

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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.

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Competition

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

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Competition
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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

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Market Potential
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Market Potential
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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

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Operational Plan

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

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Market Penetration

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

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Promotions

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

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Advertising

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

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Distribution
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Distribution
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Pricing

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

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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.

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Thank You