Assumption<br />XYZ is an Indian organization with a good financial for the development of infrastructure.<br />Is looking to invest in UAE.<br />Has considered all the legal consequences that are applicable in UAE.<br />Company is looking for quick launch within 3 to 6 months time span.<br />Research methodology used for the firm would be according to current scenario and it can have secondary data research.<br />Company is having Approx $ 70 million for marketing Budget<br />Company has a brand name that consumers perceive as value for money, quality, innovation and an aspiring degree of fun and competitive challenges.<br />
Telecom revenues breakdown in 1H09 (rounded figures)<br /><ul><li> The telecommunications sector in the UAE experienced dramatic growth between 2003 and 2008. Revenues tripled, reaching AED 27.72bn in 2008 vs. AED 9.2bn in 2003, whilst the telecoms sector contribution to UAE’s total GDP increased from 3.1% to an estimated share of 5.2%.
Even in 1H09, amidst a global economic slowdown, telecom revenues rose by 12%, reaching AED14.5bn. 59% of these revenues were generated from mobile services, whilst data services and fixed-line generated 14% and 13% respectively.</li></li></ul><li>Market Structure<br />Telecom market<br />Mobile Segment<br />Internet Segment<br />•Introduction of competition<br />•Inflow of expatriate<br />•High GDP per capita<br />•Dual SIM card usage<br />•Intensification of<br /> competition<br />•Network upgrade by<br /> operators<br />Skilled citizens<br />• Advanced IT <br /> infrastructure<br />• Expanding <br /> broadband<br /> connectivity<br />Fixed-line Segment<br />• Real-estate roll-out in<br /> New Dubai<br />• Competition on the<br /> international calling <br /> front<br />• Spread of FTTH network<br />• Provision of triple-play<br /> service<br />
Subscriber 4-year CAGR by segment (2004-2008)<br />
S T P Analysis<br />Segment : <br />Age Structure:<br /> 0-14 years: 20.4% (male 500,928/female 478,388)<br /> 15-64 years: 78.7% (male 2,768,030/female 1,008,404)<br /> 65 years and over: 0.9% (male 27,601/female 15,140)<br />note: 73.9% of the population in the 15-64 age group is non-national (2009 est.)<br />Target : Youth (12-29) 35% approx.<br />Positioning :<br /><ul><li>Youth and Mobile:
Movies : Online movie viewing on their Mobile set.
AirTime Earning Scheme : Call your friend on XYZ network and earn some air time.</li></li></ul><li>Options for price structure<br />Clone Industry Prices: contracts<br />Set prices below competition: contracts<br />A whole new plan: prepaid pricing<br />
Costs per Unit is inversely related to Number of Subscribers
Reduce CCPU by increase in Number of Subscribers
Increase in Margin will follow</li></ul>LTV=Life Time Value.<br />ARPU= Average Revenue Per Unit.<br />CCPU=Cash Cost Per Unit= 45% of ARPU.<br />M=Monthly margin =ARPU-CCPU.<br />AC=Acquisition cost.<br />r=Retention rate= 1- churn rate.<br />i=interest rate.<br />
Advertisement<br />Marketing budget $70 million.<br />Quirky and offbeat advertising, different from the competitors.<br />Street marketing.<br />Teens to be used for marketing.<br />Youth magazines like The Complex, Vibe,…etc are to be used to publish “advertorials.”<br />