Developing marketing strategy for Beeline

Developing marketing strategy for Beeline.

 

For this project we have been instructed with to come up with a marketing strategy for an existing company «Sky Mobile»  Plc. (Beeline trade mark), particularly the connection service. To do this properly, we will need to:

 

• Identify, collect, and use primary and secondary data for marketing strategy.
• Define organization’s objectives, mission and vision.

What they do to be better?

• Analysis current situation in a company.

Compare with competitors. SWOT

• Research   customer relationship.
• Market research

 

• Carry out market analysis (Marketing mix).
• Research (survey about company)
• Define problem in marketing.
• Suggestions according to survey.
• Produce a full, well-balanced marketing strategy that reflects appropriate use of marketing models and tools.

 

 

 

 

 

 

Introducing the company.

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 “Sky Mobile” Plc. (Beeline trade mark) is leading cellular operator in Kyrgyzstan, which focuses on service activities of mobile connection in GSM-900/1800 and WCDMA/UMTS 2100 (3G) standards.

  Company was created in 1997 by “Bitel” Plc. From 2006 “Sky Mobile” Plc. started   provide service by brand Bitel. In 2009 company began provide service by single international brand Beeline. From 2010 company “Sky Mobile” Plc. included to VimpelCom ltd. VimpelCom ltd. is one of the largest integrated telecommunication services operators offering a wide range of wireless, fixed, and broadband services in Russia, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Cambodia, Laos, Algeria, Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic, Italy and Canada.

Beeline is the trademark of the second largest Russian telecommunication operator, VimpelCom.  It’s headquarters are located in Moscow. Beeline’s brand was designed by Wolf Olins as the a re-brand for their old corporate identify, assisted by Marina Willer. This brand exists in 8 countries: Armenia, Georgia, Kazakhstan, Kyrgyzstan, Russian, Tajikistan, Uzbekistan, Ukrain.

 

  Objective of Beeline is to become leader in providing mobile phone and other telecommunication services. Also strives to operate efficiently and flexibly, working to anticipate the demands of tomorrow, attain the highest quality in the service they offer, and provide for growth in value of the company. The company strives to maintain a company image that inspires trust and respect not only in our clients and business partners, but in society whole.

   Mission is to help people delight in the pleasure of communications, to always feel free - anytime and anywhere.

Current situation of company.

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15th November 2012 “Sky Mobile” Plc. declared sum total of work of VimpelCom ltd. company and Beeline in Kyrgyzstan for 3^rd quarter of 2012 year.

Profit of   “Sky Mobile” Plc. for 2012 was 2bln.76mln.soms. As compared with 2011 profit was increased to 20%. Quantity of subscribers of Beeline in Kyrgyzstan also increased for 6 % from 2011 to 2012 year. 2mln.419thousands subscribers use mobile operator Beeline. 

In 3^rd quarter Beeline expanded line of products and issued to market new subscriber device.

2. Competition in the market

In Kyrgyzstan the number of subscribers of mobile communication reached 6 million 200 thousand people that made 85% of providing the population of the country this type of communication. Level of penetration of services of mobile communication in the republic makes 113%.

Two mobile network operators of Kyrgyzstan Megacom and Beeline was occupied practically all market of communication on a turn- 92.5%.

The first place in the market belong Megacom. Second place on a turn belongs to Sky Mobile (Beeline mobile network operator) - 42.5%. The third place in the market of communication of Kyrgyzstan is taken by OSOO "Nur Telecom" (mobile network operator "O! ") from shares a little more than 6%. More than 1,3% belong the Aktel companies (Fonex mobile network operator). Less than 1% of share in the market of communication occupy Katel, Nexi and Sapatcom mobile network operators. These data consists to 2010. In that year Sky Mobile’s main competitor was “Alpha Telecom” ( Megacom).

Nowadays   “Sky Mobile” has 2 main competitors: Megacom and Nur Telecom. Nur Telecom became main competitor of “Sky Mobile”, because most subscribers moved to this mobile operator. For 2012 “Sky Mobile’s” share of the market is 38%. With these competitors in the market Beeline must keep ahead of game by running successful marketing strategy, to do this Beeline must focus on the principles of marketing.

Principles of marketing. 

For the Beeline following principles will be high of program:

1. Customer satisfaction: Market research must be used to find whether customers’ are being met by current product and service.
2. Customer perception: This is image of customers about company’s product according to advertisement, personal experience based on quality, price and product reliability.
3. Customer needs and expectations: This principle include future trend and forecasting for sale.
4. Generating income or profit: This principle clearly states that the need of the organization is to be profitable enough to generate income for growth.
5. Making satisfactory progress: Organizations need to make sure  that their product is developing along with the market, if a  product is developing well, then income should increase, if not  then the marketing strategy should correct.
6. Be aware of the environment: Company should know what is happening with their market. If it changes they should be flexible.

There is also should other external factor like SWOT to be aware of. Company must take all these principles in developing marketing strategy.

3. SWOT analysis

SWOT analysis is one of way of deciding on a successful marketing scheme, we must look at Company’s strength, weakness, opportunity and threat.

Strength (internal factors) -Beeline is currently one of the most popular Mobile operator in Kyrgyzstan. To Beeline belongs about 38% of market share. Beeline’s profit for 2012 increased to 20% by comparing 2011.

Weakness (internal factors) - Beeline’s problems are they don’t give full information about the prices. They have little free services.

Opportunity (external factors) - this is the area in which Beeline can make profit or gain more market share:

Improve the technology that they are using to make their mobile operator service and use in their products, for example, new tariffs attract new clients.   

 

 

 

4. Treats:

  The high competition in branch doesn't leave opportunities for increase of own tariffs that over time can negatively affect profitability of the issuer.

Decreasing of consumer demand generates high competition in a market share.

Market research

Market research involves collection, comparing, and analysis of data of Beeline.  The goal of market research is to find whether disadvantages is the market of product and service of Beeline and find way out from problem. Market research should supply the company with all the information they require about consumers preferences, whether they buy certain products, what kind of tariffs mostly sells. In our market research we used 2 sources in order to collect information: primary data (face to face survey) and secondary data (researches through internet).

Market segmentation

In order to decide what market segment to aim, what kind of products to make, what advertising to use, what pricing to put company should know information about customers such ages, lifestyle, taste, preferences, area they live and etc.

Below the table of social-economic group of population of Kyrgyzstan:

Upper class
Middle class
Lower middle class
Skilled working class
Working class
Low income earners

 

Market segmentation of Beeline depends on tariffs they produce. For example new tariff -Freestyle v_4.0 is focusing on youth people. Other tariffs such Corporative, Ukmush, Nakta focused mostly on working class which ages are 25<.

 

 Marketing mix( Price, Place, Promotion, Product)

When marketing their products firms need to create a successful mix of:

the right product

sold at the right price

in the right place

using the most suitable promotion.

 

Product

USB Modem

SIM card

Beeline Honor (Smartphone)

Beeline S 7 Slim (новый многофункциональный планшетный компьютер на базе Андройд)

Beeline U8500

Beeline U7520

Beeline U5110

Beeline G3620

Beeline G3610

Beeline S319 (c поддержкой кыргызского языка)

Beeline G2800

 

 

 

 

 

 

 

 

 

 

Price

Tariffs:

Freestyle v_4.0 - 195som/month (переход на этот на тарифный план бесплатно до 01.07.2013)

Start (первая смена осуществляется бесплатно)

Line of statuses: стоимость перехода на эти тарифы 80 сом

    Almaz – 2490 soms/month

    Altyn – 690 soms/ month in network

    Kumush – 0.65 som/ min in network

Nokaut- 0.5 som/ min (free to enter)

Ukmush – 1 som/ min (40 som to enter)

Mir na svyazi – 1.90som per minute (40 som to enter)

Tariff Modem – 40 som

SIM Card -100 som with 80 soms in balance.

Devices of Beeline

USB Modem is priced at minimum 999 soms.

Beeline Honor (Smartphone) – 13490s

Beeline S 7 Slim (новый многофункциональный планшетный компьютер на базе Андройд) – 13990 som

Beeline U8500 – 7390 som

Beeline U7520 – 3290 som

Beeline U6150 – 3190 som

Beeline U5110 – 3090 som

Beeline G3620 – 1390 som

Beeline G3610 - 1190

Beeline S319 (c поддержкой кыргызского языка) – 850

Beeline G2800 – 1100 som

 

   

 

 

 

 

 

 

 

 

Place

 

 

 

 

Promotions- Beeline provides their new products, for example tariffs through advertisements mostly.  

Pricing strategy

Below are tables which showing price of tariffs of Beeline and its main competitors Megacom and 0! :

Tariff	Price
Line of statuses: Almaz status	unlimited calls and services- 2490 soms/month
Altyn Status	unlimited calls and services in a network- 690s/month
Kumush Status	0.65soms in a network
Ukmush+	1soms in a network, other local operators-2.9soms, GPRS-3.30soms
Nokaut	0.5 soms other local operators, 1soms-in a network, sms-1som. From 16th minute 3 soms
Freestyle v_4.0	195 soms/ month. 30 days free 295 minutes, 295 SMS, 295 MMS in a network and 295 Mb of internet.

 

 

 

 

Tariff	Price
559	In a code 559- 0,00 soms, in a network- 0.40, other local-0,40, SMS-1 s.
Master Slova	Network-1 som, other – 2,75
Vse vklucheno	Network-1 som, other – 3soms
Volna	Network – 0.95, other – 2.95soms
Tunuk	Network – 0.95soms, other – 2.95
Hit	Network – 1som, other- 2.75

 

Let’s compare 3 new  tariffs of these 3 mobile operators:

Operator	Tariff	Price
Beeline	Freestyle v_4.0	195 soms/ month. In a network 30 days free 295 minutes, 295 SMS, 295 MMS and 295 Mb of internet. Other local- 2.95soms/min
Megacom	559	In a code 559- call is free. Other local -0.40
0!	0+

 

According to this table we can say that Beeline’s tariff is more expensive, because for other local operators its price is 2.95som/min.

 

 

 

Branding

 

 

 

 

Beeline’s current marketing has helped them become one of the most popular mobile operators in Kyrgyzstan, but now demand for Beeline started to decrease because subscribers of Beeline moved to Nur Telecom. If in 2009 Nur Telecom had market share about 6% for 3 years this company increased to 19%.

 

Analysis of research

For primary research we handed out 50 questionnaires and above we had compiled all the quantitative data into the Bar and pie charts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market research.

A company’s success is based whether they can give what customers want and need