In emerging markets, it is essential for operators to identify the most successful distribution channels for marketing and selling their products in order to grow their customer base quickly and efficiently due to the high proportion of customers from the low-ARPU segment. In order to do this effectively, operators need to clearly establish their customer segments and target these with innovative business models.

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Retail channel strategies in emerging markets
Published on August 2009
Report Summary
In emerging markets, it is essential for operators to identify the most successful distribution channels for marketing and selling their
products in order to grow their customer base quickly and efficiently due to the high proportion of customers from the low-ARPU
segment. In order to do this effectively, operators need to clearly establish their customer segments and target these with innovative
business models.
Table of Content
Executive summary
In a nutshell
Ovum view
Key messages
Distribution challenges in emerging markets
Three key traits shape distribution strategies
Limited accessibility to devices for many users
Low literacy rate
Limited infrastructure availability in rural areas
Customer segmentation ' identifying your end users
Key customer groups in emerging markets
The key distribution channels
Developed versus emerging markets
Online portals
Retail outlets
Local distribution networks and entrepreneurs
Use of local entrepreneurs
The need for multiple strategies in single markets
'Mix and match' for the right result
Digicel ' an operator case study
Strategies to serve cash-challenged rural communities
Scale presents a massive opportunity
The challenge is to serve this segment profitability ' Bharti's approach
Best practices for reaching rural communities
Innovative dealer and entrepreneur networks
Partnerships with local community groups
Using non-telecoms companies that have existing distribution networks
Bringing broadband to the rural communities
Best practices for reaching other customer segments
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Tech-savvy affluent urbanites and tech-aware modest means
Low-income workers
List of Figures
Figure 1: Customer segments in emerging markets
Figure 2: Direct and indirect retail channels for a mobile telecoms operator
Figure 3: Roles of local entrepreneurs
Figure 4: Proportionate volume of customers in emerging markets by customer segment
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