Marketing plan for Thurya Satellite Telecommunication Company - Case Study Example

Marketing plan for Thurya Satellite Telecommunication company The world has shrunken mainly due to the invention and application of two par less inventions, the communication (modes of transport) and telecommunication. As telecommunication being the unabated king of the world , the seed for Thurya satellite telecommunication company. As Milan Kundre , (Czech Novelist, Playwright and Poet, b.1929) quotes, Business has two functions – one is innovation, which is the backbone of any venture and the other is marketing plan. To effectively convey the marketing strategies and the plan to the fellow members an effective and formal written marketing plan is essential, that can provide a unambiguous reference point for activities that could run through out the year. The report is only a effective delicious topping over the main substance, the planning process itself, that offers a unique opportunity, or a forum on which effective discussion could be focused and combination of which brings in successful growth rate. Table of contents Page numberss 1. Executive summary ……………………………………… 3 2. Company’s profile …………………………………………. 3 3. Situation analysis…………………………………………… 5 2.1 PEST analysis……………………………………………5 2.2 SWOT analysis………………………………………… 6 2.3 Competition…………………………………………… 6 2.4 Product offering…………………………………………. 7 4. Market objective..……………………………………………….. 9 4.1 Mission…………………………………………………. 9 4.2 Market potential…………………………………………..9 4.3 marketing strategy ……………………………………… 11 4.4 Marketing forecast……………………………………………. 12 4.5 Expense budget summary…………………………………13 4.6 Action plan…………………………………………………13 4.7 Marketing control…………………………………………….13 1. Executive Summary: It is the high level summary of the marketing plan. The objectives of this business plan is to identify the steps that would be undertaken to achieve the maximum number of subscribers and airtime generation for the MSS market in Nigeria. This the company aims to attain by Achieving the desired number of subscribers and airtime for 2007 through partnership management with our service providers in the country. Acquiring new Service providers in Nigeria. Solving pending issues. 2. Company profile: Thuraya Satellite Telecommunications Company is a regional mobile satellite system that provides satellite telephone services to a region covering more than 110 countries. Thuraya offers satellite-based telephony through a dynamic mobile phone that combines satellite, GSM & GPS. Thuraya was established on April 1997 in UAE, as a private joint stock company. The shareholders of the Thuraya are twenty one prominent national telecommunications operators and investment houses. Thuraya was established to meet the demand for seamless coverage of mobile telecommunications. Its mission is to provide uninterrupted, telecommunications services to a vast region inhabited by 2.3 billion people. Thuraya offers cost-effective satellite-based mobile telephone services to nearly one third of the globe. Through its dynamic dual-mode satellite handsets and products, Thuraya enhances freedom of movement and connectivity. Thuraya’s US$1 billion regional mobile telecommunications via satellite (GMPCS) system helps meet the need for affordable, high-quality mobile phone services to urban hubs as well as remote communities. Through partnership with leading national telecom and mobile communications companies, Thuraya provides blanket coverage to more than 110 countries in Europe, North, Central Africa and large parts of Southern Africa, the Middle East, Central and South Asia: a landmass inhabited by an estimated 2.3 billion people. Thuraya’s services are available through service providers in each market, a list included in the stores locator on its web page Subscribers can access Thuraya’s mobile satellite system through service providers, who are either be national GSM network companies or local telecom operators. Thuraya in fact, complements national GSM networks, allowing subscribers to remain connected to their national mobile networks, and to access Thuraya’s system whenever their preferred national network is out of reach. Thuraya offers satellite, cellular (GSM) service and location determination system (GPS) in a single dual mode handset that is lightweight, elegant and easy to use. The dynamic handset offers voice, data, fax and short messaging services. Thuraya was founded in the UAE in 1997 by a consortium of leading national telecommunications operators and international investment houses. The turnkey project was built by US satellite manufacturer Boeing Satellite Systems formerly Hughes. The Thuraya-1 satellite was successfully launched on board a Sea Launch Zenit-3SL rocket from the equator in the middle of the Pacific Ocean on 21st October 2000. The launch was a record success, as it was the first satellite initiated from the Middle East and also the satellite was the heaviest to be launched ever. Thuraya’s second satellite Thuraya 2 was launched on the 10th of June 2003. The Thuraya 2 satellite was deployed into geosynchronous transfer orbit by Sea Launch, which was also the launching vehicle for Thuraya’s first satellite. Designed for a 12-15 year lifespan, the Thuraya 2 satellite is positioned in Geosynchronous Orbit, 35,786 km (22,236 miles) above the Earth, at 44 degrees East Longitude and inclined at 6.3 degrees. A third satellite built by Boeing Satellite Systems is being readied to launch in the second half of year 2007. Thuraya’s third satellite is expected to expand system capacity and coverage area. he Primary Gateway in Sharjah, UAE, serves the entire Thuraya coverage area, and plans are underway to establish additional national gateways at other locations as necessary. Thuraya’s high degree of flexibility and convenience has changed the way people live and work; their day-to-day lifestyles and the manner in which they keep in touch with business associates and customers, families and friends. The company with a steering leadership of many directors and a horsec strong work force and with many eminent shareholders, works with the mission of providing affordable state-of-the-art telecommunications services in a broad range of solutions, with specific attention to voice and data. Our target customers are all those in need of basic and advanced telecommunications services in territories, being land, sea and sky. 3. Situation Analysis: 3.1 PEST analysis: The PEST analysis is an study done to scan the external macro environment in which the company operates and is expressed as PEST – Political, Economical, Social ,Technological , an acronym used to describe the framework of the analysis. The Political environment in Nigeria is a issue of less worry, with Tax policy, Employment laws, environmental regulation, trade restrictions and tariffs being in favor of Thurya. The political government is also stable. The Economic picture shows a GDP of 58.4 billions USD, with 58% share on informal economy. So the GDP inclusive of informal economy is 92.9 billion USD, with the GDP per capita of 428 USD. The total income sounds to be richest by 10%with a total of 2,988 USD. The GDP is good as Nigeria is a well known possessor of oil and gas resources. The social picture shows a total population of 126 millions, a vast market potential, with 53.4 % being rural population. The population density is calculated to be at 139 pop /Km2. it has a literacy rate of 69% with English being the official language.50% of the total population are Muslims. On the technological side, the GSM coverage of population being , 45% , covering mainly low surface. The GSM penetration rate on calculation is 11%, with fixed line density being 0.7%.as competitors on GSM there are 4 and in Satellite, Imarstar, Iridium and Globastar are the main competitor with Aces being of low threat. Thus on complete PEST analysis, Nigeria is found to possess high market potential. The additional risk assessments when done on the precautious side showed, a political risk of 4 (1-7 , being the range) , on short term, war risk of 4, earth quakes on 1, volcanic eruption 0, Meteorological dangers 1 ( on a range of 1-6). The number of NGO’s operating was 48 and hosted refugees were 0/ 17, 000. further investigation revealed a high rate of piracy attack and fisheries production at 505,839 tons, inbound tourist arrival 0.9 millions, with the expenditure per tourist on arrival 297 USD. The Tourism outbound percapita was at the rate of 8 USD. The source of these results being , Detecon analysis. 3.2 SWOT analysis Weakness: - - SWOT analysis involves internal attributes – Strength and Weakness and external environment factors – Opportunities and Threats. The matrix of which gives the green or red signal for the project. Thus it helps the firm to match the firm’s resource and external capabilities. The Strength of the project is Most affordable mean of satellite communication in the country. The advancement in total coverage compared to GSM. The Weakness is high rate of Thurya tariff when compared to GSM tariff. The opportunities that lay ahead are newly joined oil and gas company (Exxon mobiles) , growing income, high potential ,being the most populated country in Africa, tier 1 service providers. The threats includes the fact that it is a highly risking country, with low GSM penetration rate, fast growth of Vsat and VoIP, highly unorganized market, lack of security and low income of the people. Competitor analysis The market position , strength’s , weakness and market shares of the competitor is to be analyzed. As discussed earlier, competitors on GSM competitors, there are 4 and in Satellite, Imarstar, Iridium and Globastar are the main competitor with Aces being of low threat. The weakness against the competitor as already established being the tariff rate of Thurya which has to be taken into account when framing the market strategy. products offered Thuraya products give the freedom of movement and the ability to stay connected in more than 110 countries in Europe, North, Central Africa and large parts of Southern Africa, the Middle East, Central and South Asia. This means a total coverage irrespective of the fact of presence in any area as in a village, on a mountain or by the coast. GSM/Satellite Phone Thuraya’s handheld phones combine three powerful technologies: satellite, GSM and GPS allowing users the flexibility to avail seamless connectivity outside terrestrial network and utilize global positioning overview.  World’s Smallest Satellite Phones -SO-2510 & SG-2520 Thuraya’s second generation handsets are technological breakthroughs. Designed to be the smallest and lightest phone in the satellite industry, the Thuraya SO-2510, weighs a mere 130gm and is ideal for heavy users who require only satellite service in areas with limited telecom connectivity. The SG-2520 is the only satellite smart phone in existence; offering satellite service along with the full range of advanced features. ThurayaDSL provides Internet connectivity through a small and mobile terminal the size of a notebook, offering high-speed 144 kbps connectivity anytime and anywhere in Thuraya’s coverage area. Especially ideal for corporate customers, government agencies and news-gathering agencies, ThurayaDSL is a cost effective solution for their high-speed data requirements. ThurayaPCO and ThurayaPayphone offer a powerful, versatile and cost effective telecommunication solution for thousands of people in remote and rural areas with patchy networks or no communication facilities at all. ThurayaMARINE- Thuraya’s high performance maritime solution provides vessels of all kinds with sophisticated on board telecommunications for operability within Thuraya’s coverage area. Thuraya Accessories Thuraya offers a wide range of accessories that complement the Thuraya phone and products. Sourced and manufactured by quality manufacturers, Thuraya accessories are designed to enhance mobility and facilitate usage of Thuraya products. Indoor Enablers The Indoor Enablers include the Thuraya Fixed Docking Unit (FDU) that allows the usage of the Thuraya phone in an indoor environment such as home or office and the Vehicular Docking Unit which provides a station for the Thuraya phone recharging and in-vehicle operations. Phone Accessories Thuraya phone accessories include the Car Charger, Travel Charger, Solar Charger, Spare Parts, Batteries, Ear set and Software Package. Services Seamless Connectivity Thuraya’s satellite services offer seamless and superior, yet affordable connectivity.  Whether in marine outposts, remote industrial sites, or even between patchy service networks, Thuraya users are able to keep in touch in ways never before imagined. Designed to complement existing GSM networks and expand usage beyond conventional network coverage areas, Thuraya’s mobile satellite services offer a broad range of services that include voice, data, fax, short messaging, GPS through its dual mode handsets.    With a speed of up to 144 kbps on a shared channel, ThurayaDSL facilitates Internet services to Thuraya subscribers anytime and anywhere in Thuraya’s coverage area. For people at sea, Thuraya Marine service is the ideal solution for maritime customers in need of integrated voice and data/fax services (up to 9.6 Kbps). Thuraya’s Rural Communication services offer a quick, reliable and cost effective means of providing telecom access to remote and rural areas characterized by low population densities, highly scattered settlements and difficult terrains.  These payphones are an important link between remote communities and industrial centres in Thuraya’s coverage area. In addition, Thuraya’s diverse range of services include Tracking Solution, Aeronautical and Satellite Capacity Leasing that cater to a wide variety user segment in its coverage area. 4 .Market Objective: 4.1 Mission: As explained earlier, the mission of providing affordable state-of-the-art telecommunications services in a broad range of solutions, with specific attention to voice and data. Our target customers are all those in need of basic and advanced telecommunications services in territories, being land, sea and sky . 4.2 Market potential: more explanation, more details required Wording count is not a problem The main agenda is turning the market potential into revenue. The market potential on analysis When the above graph is studied, the existence of further market to br tapped could be seen. As the years progressed, the Thuraya subscribers though increased has later achieved plateau stage, which has to be raised to up line level. Target market Addressable Market Potential (Tamara Forecast Model) in Minutes Of this the addressable market potential can be still clearly marked, with the help of the following diagram, which shows the exact representation of rural , national; , international travelers and the percentage of PCO users to exactly tap the right potential with right force. When at the first attempt, the market is roughly divided to study the potential users are the national travelers. The can be targeted as they would have both the need and buying potential. Then the target could be the PCO users, who would be the second potential market , with the rural much planning is needed. When market potential viewed in another shade of user’s profile, it could be evident from the bar diagram that, corporate and business users are the main target group. Target segment strategy: The market segments here represent the market potential being divided into segments to asses the segment that would give high returns. The division of segments here are, Overall that encompasses all segments Corporate and public segment Business Country dwellers Remote workers Frequent travelers So the best market potential , that is available after the study is that Focusing on the corporate & business sectors will make 39% of the over all addressable market therefore those will be our most targeted segments. NGOs & Oil sectors in the corporate segments are the main subgroup in them. Business users working in large and medium companies or owning them. 4.3 Marketing Strategy: The marketing mix – Price, Product, Promotion ,and Place is effectively discussed. On the competitor analysis, price was found to be the main criterion Assessing Pricing strategy.- On the competitor analysis, price was found to be the main criterion. So the steps that could be taken includes, Tailor made pricing to suit specific segments. The changes are to be initiated segment wise as in corporate, business users. Customized tariffs for dominant call scenarios (Thuraya to Nigerian PSTN/PLMN). In terms of products we’ll offer HHTs, PCOs & DSL The HHT means Hand Held Terminal The PCO meaning public call office , a part of Thuraya’s plan The DSL means , reliable high speed connectivity up to 144 KBPS anywhere in Thuraya’s coverage area with plenty of applications as Email , web mail , intranet etc On promotion, Conducting mass media marketing campaign through the country to increase the brand awareness according to the communication as per the target segments: To cover the Corporate and Government segment: seminars, workshops, exhibitions, On-site visits, success stories Specific Brochures, pamphlets to emphasize Thuraya products as Enterprise solutions Using Radio, newspapers and billboards to convey Thuraya’s messages Business segment: Billboards, newspapers, Radio, TV … etc. Place -Distribution through the service provider distribution network. The service providers being the already existing or the country’s local service provide, tied up with Thuraya’s with one or more service center in many countries, the list of which is provided in the website.for. 4.4 Marketing Forecast As with any new venture, we expect a slow sales during the first semester and improvement in the second semester aided by effective marketing campaign that would be conducted through out the year of 2007. The projected figure shows, the expected expenditure for year 2007, if all things goes well as the plan devised. 4.5 Expense Budget summary: This shows the amount of expenditure forecasted for the year 2007. 4.6 Action plan The action plan includes concentrating in two areas , Sales and marketing 1. Cooperating with corporate sales officer to conduct pilot projects with the UN & World bank for rural telephony solutions 2. Introducing new tariff plan (Roaming) 3. Acquiring new potential service providers & involving existing SPs to work in the market 4. Conduct sales training Communication strategy Participating in exhibitions and conduct a mass marketing & advertising plan all over the country Grant chart  Sales & Marketing Strategy Jan Feb Mar Apr May Jun 1-Cooperating with corporate sales officer to conduct             pilot projects with the UN & World bank for rural telephony solutions             2. Introducing new tariff plan (Roaming)             3-Acquiring new potential service providers & involving existing SPs to work in the market.             4-Conduct sales training             Communication strategy 1. Participating in exhibitions and conduct a mass marketing & advertising plan all over the country 4.7 Marketing Control Below table control to be drown objectives control 1- 600 Handsets to be sold first half a- selling 100 set per month   b-more discount for more handsets 2 -25 Pco’s in first half A at 7 to 8 per month 3- introducing new active SIM 625 A 100 per month 4- Average air time per SIM 70 min   b  Estimated additional minutes per month 43.750 c For second half of the year objectives control 1- 1200 Handsets to be sold first half a- selling 200 set per month   b-more discount for more handsets 2 -35 Pco’s in first half A at 7 to 8 per month 3- introducing new active SIM 1,550 a 4- Average air time per SIM 80 min   b  Estimated additional minutes per month 124.000 c The main key to success is making the product and marketing positioning clear. Many potential buyers would much prefer our offering to the box only offerings of the chain stores and mail order sources, if only they possessed adequate information to conduct a value-add cost/benefit analysis. Word of mouth is critical in this segment. We will have to make sure that once we gain a customer, we never lose them. To help accomplish this, we must work to reinvigorate relationships through successful database marketing, among other means. We must always remember to sell the company, not the product. They have to understand they are taking on a relationship with Thurya and not just phones they can get better elsewhere. Bibliography 1. Thuraya Satellite telecommunication company , 2006 , http://www.thuraya.com/ 2. Sample Marketing Plan: AMT ,1998-2007, Khera Communications www.morebusiness.com/templates_worksheets/bplans/printpre.brc 3. D. Abell, 1980 ,'Defining the Business: The Starting Point of Strategic Planning' Prentice-Hall 4. T. J. Peters and R. H. Waterman, 1982 , 'In Search of Excellence' ,Harper & Row, 5. T. Levitt, 1986, 'The Marketing Imagination' ,Free Press 6. H. Mintzberg,1983 , 'Power in and around Organizations' ,Prentice-Hall, 1983 7. K. J. Blois, 1987 , Managing for non-profit organizations, 'The Marketing Book', ed. M. J. Baker ,Heinemann,. 8. Read More