Comparing pricing strategies Etisalat VS dU

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Comparing pricing strategies Etisalat VS dU

  1. 1. Muhammad Inamuddin mc080401378 Master of Business Administration Marketing
  2. 2. Project title Compare the Pricing Strategies of Etisalat in comparison with that of Du
  3. 3. Summary of presentation <ul><li>In depth pricing strategy study carried out of two leading companies. </li></ul><ul><li>Data collected randomly from the population of 110. </li></ul><ul><li>Survey continue for two days. </li></ul><ul><li>Market survey carried out and questionnaire used. </li></ul><ul><li>Interview carried out of the employees. </li></ul><ul><li>MS Excel® used to process data. </li></ul>
  4. 4. Summary of presentation (Cont.) <ul><li>Instead of reduction in price Etisalat giving promotions. </li></ul><ul><li>Etisalat is good quality of service provider. </li></ul><ul><li>Etisalt is using Allowance, Promotion and segmented strategy. </li></ul><ul><li>Majority of customer is of Etisalat. </li></ul><ul><li>Pricing of Etisalat is higher compare to du. </li></ul><ul><li>Etisalat packages are F&F plan, Favorite country plan and Super off peak hour plan. </li></ul>
  5. 5. Summary of presentation (Cont.) <ul><li>Du in its 3 rd year reached market share 32% end of 09. </li></ul><ul><li>Du is cheap service provider. </li></ul><ul><li>Du offers Bundle, Allowance & discount, and segmented strategy. </li></ul><ul><li>Majority of user preffer to call from du. </li></ul><ul><li>Du unique feature is per second pricing. </li></ul><ul><li>Packages of du are simple to understand. </li></ul><ul><li>Etisalat packages are More credit, More time and More international. </li></ul>
  6. 6. Introduction of the Project <ul><li>The United Arab Emirates is not specifically known agriculture country and the main source of earning is Oil and gas, most of the population is expatriates. </li></ul><ul><li>The ranked of UAE is 1st, in all the Arab states in the 2009-2010 Networked Readiness Index (NRI) and 23rd among all 133 countries assessed. </li></ul><ul><li>UAE is eight in the world having lates technology of telecommunication. </li></ul><ul><li>The TRA (Telecommunication Regulatory Authority) remains at the forefront of the success of the country's telecom sector. It is continuously considering ways to further intensify competition in the UAE telecom market . </li></ul>
  7. 7. Description of Project <ul><li>Pricing is one of the major components of four marketing mix. </li></ul><ul><li>Pricing is an important strategic issue because it is directly related to the product positioning. </li></ul><ul><li>Price is considered Central to marketing. </li></ul><ul><li>Comparison of an organization’s pricing strategies with other similar organizations is a very important topic for marketers of an organization. </li></ul><ul><li>Price strategies are made by also keeping the competitor price strategies in mind to provide the consumer competitive price. </li></ul>
  8. 8. Back ground of Project <ul><li>Only two cellular companies are in UAE. </li></ul><ul><li>Etisalat is Pioneer and leading company in this region. </li></ul><ul><li>DU few years back launched, and customer attracted due to low price offer. </li></ul><ul><li>Etisalat provides good quality of service with high pricing. </li></ul><ul><li>Du provides low quality of service with low price. </li></ul>
  9. 9. Objectives of the project <ul><li>To determent consumer perception about both companies </li></ul><ul><li>Compare the pricing strategies used by both organizations </li></ul><ul><li>To know the exact cause that people are really switching because of less price. </li></ul><ul><li>To determine the factors on prices by one company due to change of prices by other company </li></ul>
  10. 10. Significance of project <ul><li>To be able to understand the pricing strategies of two leading cellular companies. </li></ul><ul><li>A guideline to the students of marketing. </li></ul><ul><li>To understand the trend of price and to set or, suggest setting of the product price as a marketer. </li></ul><ul><li>To aware the marketing firm and companies Interested to know the situation of pricing of telecom in UAE. </li></ul><ul><li>Useful to both companies under study and also other cellular companies outside this region. </li></ul>
  11. 11. Methodology <ul><li>Data collection sources </li></ul><ul><li>Primary sources </li></ul><ul><li>Customers </li></ul><ul><li>Employee of companies under study </li></ul><ul><li>Secondary sources </li></ul><ul><li>Companies web sites </li></ul><ul><li>Magazines </li></ul><ul><li>Advertisement </li></ul><ul><li>News papers </li></ul>
  12. 12. Methodology (cont.) <ul><li>Data collection tools </li></ul><ul><li>Data collected by customers of both mobile services by asking questions . </li></ul><ul><li>Sampling </li></ul><ul><li>Data collected from all class of user </li></ul><ul><li>Sample frame for data was those who using mobile service more than two years </li></ul><ul><li>Population Size 110. </li></ul><ul><li>Random sampling technique </li></ul>
  13. 13. Data Processing <ul><li>Data collected through questionnaire from customers. </li></ul><ul><li>Data collected through employee of companies. </li></ul><ul><li>Data collected through the websites and magazines. </li></ul><ul><li>Data than processed through MS Excel®. </li></ul><ul><li>Collected data represented in form of table for comparison. </li></ul><ul><li>Collected data from customer represented in form of bar graph. </li></ul>
  14. 14. Data Analysis /KB 0.1 /KB 0.1 DATA access /mms 1.8 /mms 1.8 MMS International /mms 0.45 /mms 0.45 MMS local /sms 0.6 /sms 0.6 International SMS /sms 0.18 /sms 0.18 Local sms same 0.3 1400-16:00, 00:00-07:00 0.24 Off Peak local call 1400-16:00, 09:00-07:00 1.89 1400-16:00, 21:00-07:00 1.89 International call Off peak 60 seconds 2.4 /min 2.4 International call charges 60 seconds 0.3 /min 0.3 local call second minute charges 60 seconds 0.3 /min 0.3 local call charges 4month recharge 20times 0 Yearly 50 Renewal Charges 4month recharge 20times 100 One time 10 Bonus Amount One time 55 One time 165 Registration Charges Remarks du Remarks Etisalat Options
  15. 15. Favorite country VS More credit plan Not applicable 0 per number 10 Country modification charges /sms 0.6 /sms 0.6 International SMS /sms 0.18 /sms 0.3 Local sms same 0.3 /min 0.264 Off Peak local call 60 seconds 1.89 30% less -30% International call Off peak 60 seconds 2.4 30% less -30% International call charges 60 seconds 0.3 /min 0.33 local call second minute charges One month validity 30%   0 Bonus Amount 60 seconds 0.3 /min 0.33 local call charges More credit- unlimited validity Favorite country plan   Remarks du Remarks Etisalat Options
  16. 16. Global FF VS More time same 0.6   0.18 SMS charges same 0.3 1400-16:00, 00:00-07:00 0.24 local call charges off peak 60 seconds 0.3   0.3 local call charges 60 seconds 1.89 1400-16:00, 21:00-07:00 1.51 International call charges off peak 60 seconds 2.4 any thee number 1.92 International call charges max 30%   0 Bonus Amount Not applicable 0 / month 20 Monthly charges More time- 60days validity Global friend and family   Remarks du Remarks Etisalat Options
  17. 17. Super off peak VS More Int’l same 0.6   0.6 International SMS   Not allowed   0.3 Local sms   Not allowed   0.36 Off Peak local call 60 seconds 1.89 00:00-07:00 0.76 International call Off peak 60 seconds 2.4 1400-16:00, 21:00-07:00 1.23 International call charges call not allowed Not allowed   0.36 local call second minute charges max 60%   0 Bonus Amount call not allowed Not allowed   0.36 local call charges More International -60 days validity Super off peak plan   Remarks du Remarks Etisalat Options
  18. 18. Customer interest due to economical price <ul><li>* Both indicate that customers have same opinion for both products. </li></ul>
  19. 19. Customer trust due to price charged <ul><li>Do not know includes both customer who do not care about the prices and those who are not satisfied with both services. </li></ul>
  20. 20. Customer shift due to reduction in price <ul><li>Do not know includes both customer who want to shift due to offer and those who want are not interest due to any offer. </li></ul>
  21. 21. User of individual and both services <ul><li>Both represents, that customer who carries both services at once. </li></ul>
  22. 22. Over all perception of Service <ul><li>Both represents, to those customers who are not satisfied with bother services. </li></ul>
  23. 23. Perception about the company image <ul><li>Both represents, customer perceives equally to both companies </li></ul>
  24. 24. Service as a solution provider <ul><li>Both represents customers are not satisfied with both companies. </li></ul>
  25. 25. Packages information <ul><li>Do not know indicates that the have interest to explore the packages. </li></ul>
  26. 26. Customer shift due to low price offer <ul><li>Do not know includes both customer who do not know about the price and those who due to inconvenience do not want to shift. </li></ul>
  27. 27. Conclusion/Findings (Etisalat) <ul><li>Etislat is good quality service provider. </li></ul><ul><li>Etisalat packages are more complex and a normal user can not understand easily </li></ul><ul><li>Etisalat packages are bit tricky for a normal customer. </li></ul><ul><li>Etisalat uses promotional strategies rater than reducing the prices. </li></ul><ul><li>Etisalat services proved that they are the need of customers. </li></ul><ul><li>Etisalat over all packages are far more expensive as du. </li></ul>
  28. 28. Conclusion/Findings (du) <ul><li>Du is average quality service provider. </li></ul><ul><li>Du proved that it is economical service provider. </li></ul><ul><li>Du packages are less tricky. </li></ul><ul><li>Du uses allowance strategies for most of its packages. </li></ul><ul><li>Du promotions are not that much as etisalat. </li></ul><ul><li>Customer are not fully depends on du due to its quality of service. </li></ul>
  29. 29. Recommendations (Etisalat) <ul><li>Need to build lost trust on customers by clear and self explanatory packages. </li></ul><ul><li>Need to focus on the allowance strategies further. </li></ul><ul><li>Need to increase the loyalty providing the straight and clear offers and packages. </li></ul><ul><li>Need to take advantage of its quality of services and need to introduce the allowance. </li></ul><ul><li>Etisalat need to add charges on call diverting services to restrict the caller to use the du at the expense of etisalat. </li></ul>
  30. 30. Recommendations (du) <ul><li>Need to improve the quality of services, as du become secondly connection in the market. </li></ul><ul><li>The user of du, mostly uses etisatat as well to be in touch with the world. </li></ul><ul><li>Du required to make its own identity despite the low call provider. </li></ul>
  31. 31. Thank You

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