The paper “ Safaricom - Target Market, Price, Place, Promotion, People, Process" is a potent example of a case study on marketing. Safaricom is a Kenyan telecommunications company that primarily offers mobile services to the Kenyan people. The company’ s profile comes out as a near-monopoly with a customer base that constitutes almost 77% of all mobile phone owners in the country. The company also majors in the provision of data services having the first 4g network in Kenya. It has the most creative offers in the Kenyan market thus making it the leading service provider in the country and a force to reckon with in Africa.
The company rates as the most innovative in Africa according to Forbes magazine The Ten Most Innovative Companies In Africa, Samantha Sharf. ObjectiveThis study seeks to analyze the service provisions of East Africa’ s leading telecommunication company, Safaricom. The study will use the Seven Ps methodology to review its services and give a recommendation on how they might be improved. BackgroundSafaricom began in 1997 as a subsidiary of Telkom Kenya. A United Kingdom-based company; Vodafone then bought 40% stake and management responsibility of the company.
Safaricom’ s breakthrough came about when the company launched the first mobile money transfer service M-Pesa in 2007. This service allows customers to send money via the phone in the form of text messages. The company has many creative offers that it unleashes on the regular which makes it relevant at the forefront of service provision in the country. The company’ s offers often become copied by other mobile telecommunication companies that compete with it. This makes it one of the reasons why Safaricom appears to be a monopoly in the Kenyan mobile telecommunications industry. AnalysisDescription of the target marketSafaricom’ s target market consists of mobile phone owners, users of data services, commercial markets and the whole population at large.
This stems from the diversity of the service provision offered by Safaricom. Originally the target market constituted mobile phone owners. The company profited from the sale of airtime cards whereby an amount of airtime becomes consumed per minute. This consumption varies. This depends on the company to which the recipient of the call belongs. The call rates become higher if the recipient of the call belongs to a different service provider other than Safaricom.
This method of regulating call rates according to the recipient’ s service provider features as the main way of controlling competition. Safaricom has over 12 million registered customers who use mobile services accounting for over 71.02% of all registered mobile owners in the country. For a long time, competitive cost-cutting deals from other telecommunication service providers did not affect the company. Most recently the competition grew to another level. The companies now rely on other methods.
In order to woo customers, they provide data services. Nowadays Safaricom’ s services range from hosting sports events to being a secondary Internet Service Provider. The company currently cites the provision of data services as its main source of income. This is due to the increasing number of internet users in the country and the decreased call rates due to reduced rates from rival companies. The provision of data services takes place by providing customers with access to the internet at a fee. Internet services can be received through a modem or internet-enabled phone.
Previously the company used to provide unlimited daily, weekly and monthly internet services at a fee till its termination. The company’ s CEO Bob Collymore cited the reason behind this as losses emancipating from data users taking advantage of the offer way too much. The example he gave explained a situation whereby a customer would download over 35 GB of data. This download happened at a cost far much lower than the price the company bought it. Currently, the company offers data services through data bundles, which customers buy according to their mode of usage.
These consist of the daily and monthly data bundles which expire after a day and a month respectively.