The Kenyan
telecommunication industry which features several firms like Safaricom, Airtel
and Orange offer a variety of products and services to their target market.
Among some of the services offered include mobile communication, fixed line
communication, data and mobile money services. The firms have continued to
compete by positioning themselves within the market through changes in the
marketing mix elements price, place, product and promotion. The
telecommunication firms seek to offer competitive prices of their products and
services, superior products, stronger networks in terms of distribution and
effective promotion to reach their customer market. This can be best explained
through the following cases of the firms as they interact with their market and
changes they make to ensure they develop and maintain a competitive edge.
Price:
Airtel moves to increase its tariffs
In a recent twist of
events Airtel Kenya announced an increase in their prices which will place them
slightly higher than that of the industry leader Safaricom. Although Airtel has
not confirmed a change in strategy this move signifies an attempt to stop the
price war. The move to increase tariffs on its major tariffs (Klub 254 and
Vuka) is likely a result of the need for the firm to invest and improve the
quality of its data products. But the company still maintains the low pricing
strategy on its (Tosha) tariff for competitive advantage on cost leadership
within the customer market.
Product:
Safaricom Product innovation M-PESA/ M-SHWARI
Safaricom through
introduction of its M-PESA Product placed Kenya on the world map as the first
country in the world to use the service. M-PESA allows its subscribers to use
their mobile phones to access banking services where the user can send and
receive money on their mobile phones. M-SHWARI which is a complementary product
offers the ability to save and earn interest for their users. This shows a commitment by telecommunication
firms to improve their products to attract more customers.
Place:
$293m investment by Safaricom to improve its network coverage
Safaricom recently
invested $293 million to improve its network and make it the best in the
country. In a statement by its CEO Bob Collymore, the company has increased its
sites to 2,905, 1,604 of these are 3G enabled and this has improved the
distribution of their products and services to reach more customers in the
market.
Promotion:
Digital promotion
Firms within the
telecommunication are increasing the use of digital platforms for promotion.
All the companies have an online presence through their websites and social
media profiles. They use these platforms to engage with their customers who
prefer interactive channels of promotion instead of the traditional static
methods. Digital platforms have offered the firms an opportunity to interact in
real-time with their customers.
References
Thiong’o, P. (2013). Will Airtel kenya’s move to raise call
rates end price wars among telcos?. The
East African.
Institute of Developing Economies- Japan External Trade
Organizations. (n.d.). Safaricom Limited
Sato, N. (2013). Safaricom in $293m investment to have “best
network in Kenya”. Human IPO.