Etisalat e-Life System Group project
Group Members & ID:
Maitha Ali Shahdad
Fatma Al Bannay
Sara Abdulrahman Aljassmi
Tahani Abdulfatah Al Jasmi
Afraa Salim Mosabeh
Samira Juma Buhumaid
BUS - 310 - 502 Dr. Li Sun Submission date: 15th Dec 2011 Final Draft
Executive summary e-Life is the latest, most advanced product offered by us “Etisalat”. It’s an innovation that offers one affordable bundle for the fastest internet connection, a multifeature landline, and the most exciting TV experience. The fastest broadband in the UAE is fiber optic. The fiber optic cables speed up the internet service at the speed of that allow light to bend and curve to transmit signals faster and clearer than ever – no matter how far the distance. Unlike traditional connections, fiber
optic signals don’t break down as they travel. e-Life takes the speed and reliability of fiber optic technology, and uses it to provide the customer’s home with supersonic internet, multi-feature landline and advanced TV experience. The new IPTV service is a key part of the e-Life “Triple Play bundle.” It provides over 350 TV channels with over 25 in full HD quality, On Demand, Recorder, Catch-up TV, Mosaic channel display, Live TV, Games and Applications and many more exciting features for you and your family to enjoy. As it is a new product, there are some problems occurred. There is no fiber optic coverage in all areas, many customers complain that there is delay in providing the service, and not all people know about the new features in this product so the demand is low. The primary marketing objective of the first year are to cover 70% percent of the areas and reduce customers complains on technical problems, network coverage problems and customer service problems. The financial objectives are to position the service and achieve sales in the market by 30% in the first year, and break even lately in the second year, and reach profit of 50% in the third year.
Current marketing situation e-Life is created in May, 2010. The modem is created by Segmacom, a French high technology group. Internet services are highly demanded nowadays as everything depend on the internet. Nothing can be done without the internet services. Everyone need it. The number of internet hosts in the UAE is 379,309 and it is ranked the 54 world wild (CIA, 2011), and the number of internet users is 3,777,900 (United Arab Emirates internet usage and marketing report , 2010) where the whole population is 8.26 million (UAE population at 8.26m in 2010 h1, 2011). Competition is there on this product as the demand and usage are high. The major competitor is du as this product is produced only in the UAE.
Market description Our market consists of home and personal users who need to use a bundled features that provide the best internet connection, a multi-feature landline, and the most exciting TV experience. As they will have better connection to the internet and they will have the channels without having a satellite. The specific segments that we target to be aware of our new product and use it are the householders, students and people who need interne t connection at their home.
e-‐Life’s Targeted Audience: e-life is for anyone and everyone. We want this service to be broad and include all types of people with different ages around the UAE. We target males and females, old and young, students and employees. Our first target are males and females who have variable interests as some of them are looking for fashion, food, sport, cars and other life aspects. e-life service will be a good choice to provide them with what they are looking for with its different features. As e-life provides the person with internet services and television services. It will be suitable for this type of people, because TV channels are provided by elife are more than just normal satellite channels, and so they can get their desired interest from these TV channels and the speedy internet we provide them with. Also, e-life is good for people who want to communicate using their mobile phones, but our telephone and mobile services are cheaper than the normal services for national and international calls, and e-life will provide both international and national calls in lower costs. Age wasn’t a concern for us – e-life group- as this service is useful for all ages, but we think that young people will be more interested in it than the older ones. Regarding students, we think it’s important to help them educate themselves and entertain themselves too. As for employees, e-life can help them to accomplish their tasks using the broad services we provide.
Product Review: E-Life is based on Next Generation Fiber Optic Technology, which allows customers to combine high quality voice, supersonic Internet, and High-Definition TV into one amazing experience. We offer two different packages for our customers, eLife Double Play and eLife Triple Play. (All the product information are taken from the official website.) The first product, eLife Double Play, offers the following standard features: •
Excellent value for money: Phone & broadband internet together
Latest Fiber technology
Simple to subscribe
FREE e-Support application, Internet Security applications and additional email accounts,
Caller ID, Voice mail Supersonic Internet Speeds: Superfast broadband in every room with internet speeds many times faster than before. •
Up to 30 Mbps download & 3 Mbps upload with more to come.
Every home has equal capacity regardless of the location
Connect several PCs at a time
Feature-packed Interactive Landline: Customers landline will be revolutionized with access to voice service offering crystal clear sound, and many unbelievable features that where never before possible. •
Free 20 minutes of international calls every month
Free Caller ID so they can view or screen calls and see missed calls.
Voice mail service (usage as per tariff)
eLife Double Play package offers a distinctive values of the properties at an attractive prices: o
8 Mbps (299 Dhs/Month)
16 Mbps (359 Dhs/Month)
30 Mbps (499 Dhs/Month)
The second product, eLife Triple Play, offers the following standard features: The triple play package includes all the properties of the previous package (Double play), in addition to these properties: •
Excellent value for money: Phone, broadband internet & TV together!
Broadband usage even outside of their home
Choice of Basic TV channels and Premium Packages
High Definition TV Channels
Amazing TV (only in eLife Triple Play): It’s a next wave of technology, which will transform the viewing experience, giving customers complete control over what, when and where to watch TV. -
Basic Channel Package Choice and Value: Basic TV services are offered in languagebased packages as Arabic, Asian and Western choices. The first package is already included in the Triple Play subscription price. Additional packages available at AED 20 each. Premium TV such as ART, Showtime-Orbit and others is also offered at current market rates.
High Definition (HD) TV Channels: The High Definition (HD) TV feature enables customers watch programs with very high detail (resolution), clear colors and sounds.
Personal Video Recorder (PVR): A “PVR” feature is available to Standard for Premium TV package subscribers and as an option to Basic TV subscribers, the new TV box will be capable of “pausing” any live TV channel as well as rewinding and
playback. Instant and planned recording will mean TV watching becomes convenient to eLife viewers. As there are some additional features, the prices are different: o
8 Mbps (339 Dhs/Month)
16 Mbps (399 Dhs/Month)
30 Mbps (539 Dhs/Month)
Competitive Review: The United Arab Emirates has two telecom companies, Etisalat and du. As a competitive, du is offering several different packages for their customers. (All the product information are taken from the official website.) Real Broadband packages can be availed of by subscribing to “Talk and Surf“ and “Talk, Surf and Watch“ packages, which offer home services: -
Talk- The calls only cost one fills per second
Surf- Up to 16 times more broadband, real broadband. Free 5 e-mail accounts with 1 GB mailbox each plus free antivirus and anti spyware software.
Watch- du TV+ provides intuitive channel browsing, pause, rewind and record live TV. It has HD and 3-D television plus Movies on Demand and On Demand Club.
Talk, Surf and Watch: o
8 Mbps (279 Dhs)
16 Mbps (339 Dhs)
24 Mbps (429 Dhs)
Talk and Surf: o
8 Mbps (199 Dhs)
16 Mbps (259 Dhs)
24 Mbps (349 Dhs)
Broadband: The latest fiber-optic technology brings high speed Broadband directly to your home. Our advanced network uses the latest technology to enable a superior Broadband experience. Customers don’t even need to buy a modem: just plug their computer into the socket, launch their browser and they are on-line! No need to remember usernames or passwords either. They can choose from several packages with various access speeds and value added services such as e-mail (including antivirus) and web hosting.
Channels and Logistics Review: Etisalat-branded products will be distributed through a network of retailers in the top 50 U.A.E. markets. Among the most important channel partners being contacted are:
Office supply superstores: office suppliers will provide some propagandas, and
they will carry e-Life product in catalogs and online. •
Online retailers: some websites are carrying products for a promotional fee.
Electronics specialty stores.
The largest telecommunication
Lack of advertisements and service awareness
company in UAE
Poor customer services
Long history of the company
high price and volume
therefore loyal customers •
High Speed Internet
Multiple uses within a service
Satellite service Opportunities
LANs is commonplace in business
and home •
Varies of services in e-life package
Applying e-life service in a wealthy country with economic growth
Resolving problems of other services
Having an established competitor which is du
Competitors have another services with lower price
Shift on consumer behavior of the service
Strengths Our company Etisalat is the first large telecommunication company in UAE which makes its position in marketing powerful. Although du is the only competitor, still Etisalat have a wide range of history and background that gained high number of customers. Our long stand history with our faults and corrects in the region made us proving by years our success and let us gain our customers satisfaction, achieve customers relationship and their
loyalty. Therefore, our brand and name gained its recognition within the country and abroad especially in Egypt where they recently opened a new Etisalat hub. Thus, these important strengths give the new service “e-life” advantages to position in the telecommunication marketing in a short term. Furthermore, it gives the chance for loyal customers to experience our new service, and also it drives new customers and segmentations to attempt this service. In the service itself, the strength of it, is the fast internet performance. Few numbers
of devices could reach its internet speed. But with our known brand and position, people will prefer to attempt and experience the new service “e-life”. Loyal customers, who already gain trust with us, will easily attempt to this service as they have their trust and security. In “e-life” service, consumers can use not only high-speed internet but also telephone line and satellite. As it is one service with multiple uses. This strengthen its marketing that it minimize other uses in one service. Once the customer register for “e-life” he will have telephone line that is connected to the service and satellite that has different options than the regular one. Overall, “e-life” service is characterized by high quality of security, as only the authorized person have the access to the service.
Weaknesses Because of the lack advertisements on our new service “e-life”, it gives the point of weaknesses of its marketing. Customers are not aware of “e-life” services because the advertisements are not very effective and appealing to the customers. This is because our company has a lot of other services such as telephone services, internet services, mobile services and satellite services. Therefore, the advertisement of “e-life” service would conflict with other services advertisement, which would drive customers to go for the more affective advertisements and change their interests, especially for the customers who are seeking for new interest more than demands. For instant, we offer more than one package on internet service with different characteristics and prices, and customers will look at what grabbed their interest. According to some of e-Life service customers, they have been complaining a lot about the e-life customer service that their customer service have lack of persuasion with the customers. They are not as helpful as the customers expect, and they would keep the customer wait much longer than they expect till they get what they want. Besides the poor customer service, they pay more than what they get for the service. As the price and volume are high, customers value on the service will lower.
Opportunities Internet and Local Area Network (LAN) are very common nowadays, as people at home, offices and universities are using internet and LAN as it is one of the fastest and easiest connection to the outer world. This aspect gives the opportunity for e-Life service to be a successful in its marketing; because those people are more likely to have a high-speed internet with other networking features. Beside high-speed internet, e-life service offers them other networking features such as satellite and telephone line connection, and also e
life service solved other connectivity service either services from Etisalat or other telecommunication companies. Furthermore, the opportunity of marketing this service in a wealthy country that has GDP of $246.8 billion as estimated in 2010 (CIA, 2011), is very high and will be favorable as it affects the economy of the country.
Threats Having a new and establishing Telecommunication Company within the country does a competition in the market of telecommunication. Etisalat and du are the only telecommunication companies in UAE. Therefore, the contention between them is high, each company pulls customer by offering services that compete the other company. Furthermore, the behavior of the customer changes depending on their changes of their needs or the offered services prices. These can alter the customer from applying for “e-life” service to another, or from Etisalat to du.
Objectives and Issues First-‐year Objectives •
Solve service problems by 70% and reduce customers complains on technical problems, network coverage problems and customer service problems.
Positioning the service and achieve sales in the market by 30%
Second-‐year objective •
Increase people awareness about the product
Achieve sales in the market up to 70%
Achieve breakeven by the end of this period
Third-‐year objective •
Increase range of distribution channels of the service to reach profit of 50%
Keep in track on promotional mix to promote through other companies and stores such as Axiom Telecom.
Since the product lunch and the development of its marketing, the major issues we faced are promoting the service and establishing it in a marketing position, and there is no coverage in all areas which delays the service establishment in those areas. We have to critically boost our service marketing to create outstanding and unique service brand emphasizing on its quality and value. Additionally, increase the number of technicians who work on covering the areas with fiber optics. Therefore, we have to determine customers’ awareness and responses to adjust our marketing effort, and coverage of the areas as needed.
Marketing strategy Positioning Using product differentiation, we position the e-Life service as the fastest, convenient, value-added bundled service including landline, broadband, and cable TV for home use. Our marketing will focus on the convenience of using the service, entertainment, the benefit of multiple users with security, and information capabilities differentiating the e-Life system.
Product Strategy e-Life is a service that provides internet connectivity to the consumers as it is described earlier in the Product Review, will offer monthly discounts for our customers who subscribe to the product earlier in the first six months. We will also upgrade our services to solve the problems that occurred by 80%. In addition, lessen the customers complains about technical problems, network coverage problems and customer service problems. Our company brand is well known and has high familiarity among the target audience, so this will make it easier for us to reinforce the publicity of the new product.
Pricing Strategy We decided to reduce the price of 1 GB mobile broadband data bundle in order to benefit our consumer’s with a suitable use and features. However, for every 10 MB the monthly fee AED is 25, 100MB fee is 95, 1GB is 145, 5GB is 295 and 10GB is 395. We aligned all these mobile broadband permanent cutbacks with the needs of our consumers and the augmentation of our mobile broadband demands.
Distribution Strategy A product’s placement is designed intelligently by our marketing administrative. Our group has decided to place our product throughout the main retail channels and our company’s outlets to position our product on their shelves. With this, we will make sure that e-Life services are available to our consumers whenever they require them and at the
right places. The organization will also ensure that our consumers receive correct products and ensure consistency of these services. Through our retail outlets and other outlets we will be able to plug e-life service in many areas in the UAE by reaching 70% of the residents.
Marketing Communications Strategy We base our promotion on few things that mainly entails that our product is cheaper, accessible in monthly payments, and gives additional offers for fresh subscribers.
Reasonably, in the second year of our marketing plan, our company will follow an extensive promotion campaign to advertise the product and increase the awareness between the people. Since the product is already in the market and some folks are not aware of its existence, we will embark on promoting through mass media for instance Dubai TV, Abu Dhabi TV and MBC as they are watched by most of our target audience. In addition, we will use newspapers like Gulf news, The National, Albayan and Al Khaleej. We will also use the website to advertise for the product (http://www.etisalat.ae/), and put ads in other websites like the newspaper websites. Through these promotion strategies, the company will be able to communicate with its consumers regarding eLife. Our promotion entails a “5 for 5” strategy where when a consumers uses his/her 5 minutes on overseas calls, then the consumer may be able to talk for extra five minutes on a similar call. However, we plan to last this promotion strategy for a short period and it will position the service and achieve sales in the market by 30%. Finally, we plan to arrange special payment terms for retailers that place volume orders.
Marketing Research Using research will help us to learn more about our potential clients, who they are and what they want the most. It helps to identify opportunities, check the competition, are they missing something we can capitalize on, what can we do better than they can, and are our clients in need of something nobody else is offering. The important part that research will do is to minimize the risk, just like any situation, if we are prepared we will be less likely to loose and more likely to win. In addition, research will create benchmarks to help us measure progress, how well are we doing by setting the standard high from the start, we will be in a better position for sustained growth.
Action Programs The eLife service will be introduced in February. The next year will be almost about fixing service problems, so the action programs that we will use will be during the first six month of the second year to achieve our objective that we set for this year
including : rising public awareness about the eLife service using promotion strategy to achieve sales in market up to 70%. The promotion campaign will be begin in January at industry trade shows to educate traders and channel support for the service launch in February. In addition, we will create buzz by providing a special offer which is free illustration for the eLife service to selective reviewers, opinion leaders, influenced bloggers and celebrates. Also if the consumer want to know more about the service, they can visit our major chains specially in
MCC and Dubai mall as our training staff work with retail sales personnel to explain eLife features, benefits and advantages. February we will start the multimedia campaign to target professionals and consumers . integrated print/radio/internet campaign will show the function and superiority features of the service and emphasize the uniqueness and multiple uses of eLife service. March the multimedia advertising campaign continues, we will involve the consumers as a kind of interactive relationship with the audience and we will make use of some types of sales promotion like contest. The idea is to give consumers the opportunity to post videos to our Website, in order to show how they use the service in creative way. Maker of the pest video will receive free subscription for the next month. April we will offer prizes for the retail organization that achieve high rate of the number of members or participants in eLife service during the four week period. May our vision in this month is to make a new national advertising campaign. celebrate will be part in this new campaign as the radio ad will feature celebrity voice telling the perform function of the service such as give the consumer the control over what when and where to watch TV, enjoy MBC in HD for free with eLife TV, enjoy crystal clear sound with free 20 minutes of international calls every month, and so on. The print and online ad will feature avatars of these celebrities holding their eLife modem.
Chief Marketing Officer
June we will exhibit at GITEX trade show and provide channel partners with new competitive comparison handouts ad sales aid. Also our plan is to have analysis about the result of consumer satisfaction surveys for use in future promotions and to provide feedback for the service and marketing activities.
Bibliography Banting, Peter; Ross, Randolph E.. (2010) "SpringerLink - Journal of the Academy of Marketing Science, 1(1); 235-256. CIA. (2011). United Arab Emirates . Retrieved from CIA: https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html eLife Double Play, (2011). Retrieved from http://www.etisalat.ae/index.jsp?lang=en&type=package¤tid=669f59ecfb01a010Vg nVCM1000003c05000a____&contentid=52688f62870a8210VgnVCM1000000c24a8c0RC RD&offer=Package&order=8 eLife Triple Play, (2011). Retrieved from http://www.etisalat.ae/index.jsp?lang=en&type=package¤tid=669f59ecfb01a010Vg nVCM1000003c05000a____&contentid=52688f62870a8210VgnVCM1000000c24a8c0RC RD&offer=Package&order=9 Etisalat eLife. (n.d.). Retrieved December 8, 2011, from http://www.etisalat.ae/index.jsp?lang=en&type=service&contentid=52688f62870a8210Vg nVCM1000000c24a8c0RCRD¤tid=669f59ecfb01a010VgnVCM1000003c05000a__ __ Jedda, S., Kunn, S., Melinette, F. (2010). Development of a New Product Bic Phone [PDF Document]. Retrieved from http://www.marketingplannow.com/%5Cuserfiles%5Cmarketing%5CTelecommunication %20Orange%20France%20marketing%20plan.pdf Real Broadband Packages, (2011). Retrieved Dec 5th, 2011, from http://www.du.ae/en/athome/talk-surf-watch/plans#tab-section Stuart Riley (2005) The Four Ps of Marketing and Three Ps More eLife – Double Play". etisalat. Etisalat. Retrieved on June 24, 2010 from http://www.etisalat.ae/index.jsp?lang=en&type=service&contentid=ae0b7ea64789c110Vgn VCM1000000c24a8c0RCRD¤tid=669f59ecfb01a010VgnVCM1000003c05000a___ _. United Arab Emirates internet usage and marketing report . (2010). Retrieved from Internet world stats : http://www.internetworldstats.com/me/ae.htm UAE population at 8.26m in 2010 h1. (2011). Retrieved from Emirates 24/7: http://www.emirates247.com/news/emirates/uae-population-at-8-26m-in-2010-h1-2011-0401-1.375677
Published on Apr 12, 2012
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