BUKOLABUKOLA

ORANGE UGANDA LIMITED

A

BTL/EXPERIENTIAL ADVERTISING AGENCY REQUEST PROPOSAL

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Background

• Orange Uganda Limited commenced operation in March 2009 and within the first month of launch had an enviable 55,000 customer base

• Presently, she has about 2% market share and striving to increase this within the next few months, as she extends her network to semi-urban and rural areas of the country

• Engaging a competent BTL/Experiential agency will assist in achieving the set goals: thus the purpose of this proposal

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Objectives

• To engage a competent BTL/Experiential Advertising Agency that will aid in the implementation of Orange communication strategy, and all other means that will guarantee consistency of the Orange brand, her products and services in Uganda

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Analysing Consumer Motivations: The Censydiam Model

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• Research by the Centre for Systemic Diagnostics in Marketing has identified 8 types of motivations that drive human behavior as the following:

The Motivations

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Release

Control

OtherSelfPower

Vitality

Enjoyment

Conviviality

Belonging

Security

Control

Recognition

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The Eight Consumer Need States Explained

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Vitality

• Vitality is all about experiencing freedom, passion, adventure, spending energy, feeling very much alive and kicking

• These class of consumers seek to realize individuality by embracing innovation and exploring the environment.

• How does the brand stimulate and energize me?

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Power

• This consumer need state reflects the need to achieve success and status in life.

• These class of consumers desire to climb to unprecedented and solitary heights.

• They want to be respected, praised and acknowledged for the choices they make.

• How does the brand help me gain status and respect?

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Recognition

• This consumer need state reflects the need to be different, to stand out and not drift with the crowd.

• It is about feeling superior intellectually, culturally, and/or materially.

• They therefore seek to associate with brands that they perceive as fulfilling their need state.

• How does the brand help me to put myself forward and feel unique?

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Control

• This need state reflect consumers who are more functional (rational) than emotional in their preferences for brands.

• It is usually triggered by situations and circumstances.

• How does the brand help me to feel in control of what is happening around me?

BUKOLASecurity

• This need state reflects the need for comfort, tranquility, and relaxation.

• It is about feeling protected, secured and cared for.

• These class of consumers seek to identify with brands that evoke such feeling of security.

• How does the brand help me feel sheltered?

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Belonging

• This consumer need state reflects the need to feel part of a group.

• It involves the need to feel accepted and supported by loved ones.

• Also includes the need for obedience to norms and regulations of the group.

• How does the brand help me to find a trustful haven among people who like me?

BUKOLAPleasure

• This need state reflects the need to maximize satisfaction of physical and emotional needs.

• Such consumers seek to identify with brands they perceive as giving them spontaneous and immediate satisfaction.

• It is impulsive and sometimes excessive or even maniac.

• How does this brand help me to enjoy myself and feel cheerful

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Conviviality

• This consumer need state reflects the need to open up socially.

• The need to really share emotions with others and have a good time together.

• How does this brand help me to be optimistic and open-minded towards others?

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Release

Control

OtherSelfPower

Vitality

Enjoyment

Conviviality

Belonging

Security

Control

Recognition

BUKOLAConsumer studies - Desired product attributes

• Strong network signal and consistency

• Low call rates

• Wide network coverage

• Uniform intra and inter network rates

• Customer friendly

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Consumer insight

• I want a network that gives me the liberty to communicate whenever, wherever and at a very reasonable cost, keeping me in touch with my loved ones and business associates

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Target Demography

• The foregoing shows that our target is prevalent in the youth market, in line with the population dynamics

• They fall within the following categories– Students– Young professionals– Older working class professionals

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Target Psychography

• They want to relate with their peers• They want to have fun• They want to do business• Enlightened• Upwardly mobile• Peers influence• Happening individuals – party lovers,

no dull moment

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•Young Executives •Unmarried male & female•Working-class•Earns about N2m p.a.•Influenced by friends and columnists/blogists•Conscious about each others emerging opinion•Builds up on trends & style set at undergrad years

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Uganda Population Dynamics• According to the Uganda Bureau of Statistics, Uganda

has an estimated population of 28.6 million in 2007• It is projected to increase to 40.6 million by 2017 on

a low variance, putting into consideration the effects of HIV/AIDS

• The population is a youthful one with a median age of about 15yrs and it is projected that this will remain so through the projection year of 2017, due to high fertility rate

• The working age population of Uganda (15yrs-64yrs) is estimated to be about 50% of the total population as at 2007 and it is projected to remain till 2017

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Uganda Telecoms Market Analysis

• The launch of Orange in the first quarter of 2009, heralded stiff competition within the telecommunication sector in Uganda

• Their laudable achievement of 55,000 subscribers within the first two weeks of launch, signalled their readiness to take over the market, based on their pedigree

• Presently, there are 6 operators in the country, with I-Tel being the latest entrant

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Uganda Telecoms Market Analysis Cont’d

• Their various market shares based on data from Mobile World, puts MTN as the leader with 41%, while others are– Zain – 22%– Uganda Telecom - 19% – Warid Telecom - 17% and – Orange - 2%.

• It is hoped that the switching on of SEACOM cable will have very positive effects in the sector, just as is evident in the neighbouring countries (Kenya & Tanzania), as this will assist in broadband coverage

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Uganda Telecoms Market Share Chart

BUKOLAUganda Telecoms Market Analysis Cont’d

• MTN the market leader focuses more on the corporate market and brought liberalisation into the Uganda telecoms industry

• Zain leverages on sponsorship to drive presence in the market

• UTL leverages on the fact that they have a large subscriber base on their CDMA network leverages on tariff and promotion to drive subscriber acquisition and presence

• WARID uses their large bouquet of products and services to drive their market share

BUKOLAUganda Telecoms Market Analysis Cont’d

• Attention is now geared more to providing financial transaction services, with mobile banking which is becoming a prevailing phenomenon and other payment services such as fuel purchase or electricity bill.

• The current economic recession has affected the sector like any other sector: subscribers have devised the means of acquiring more than one SIM card, in order to enjoy the low on net calls and prefer to use SMS for cross network communications, as cost is important.

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Positioning Strategy

• From the foregoing, Orange Uganda should be positioned as a Lifestyle Lifestyle BrandBrand, focusing on the youth market and leveraging on consumer relationship development activities

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BTL Strategic Approach

• In line with Orange’s global strategy of utilising CSR as a platform of presence and relevance in their various market operation, we recommend that OUL own propriety rights in one or more of the following areas of Ugandan life– Entertainment and– Sports

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BTL Strategic Approach Cont’d

EntertainmentEntertainment• Music and Comedy Festivals

– Campus events, where entry is at the purchase of Orange SIM, Recharge or phones

– Public Concerts, where intending attendees will send in SMS to be eligible for invitation to the Mega concert

• Game Shows– Television and Radio game show where

subscribers will stand the chance of winning various gifts. These will be exclusive to Orange subscribers only

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BTL Strategic Approach Cont’d

SportsSports• First Eleven Football Reality Show

Uganda– Subscribers send personal info through SMS

(premium tariff) to be part of the reality show– Winners will be voted by others through SMS,

based on their performance in the reality show

• Predict and Win Promotions– Partner with the Ugandan Premier League to

be able to run prediction promotions, using short code platform.

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Budget Proposal

• Retainer Payment Option:– A total of 6 staff will be on the Orange

account for a monthly retainer of $20,000.– While cost of line items will be as charged

by suppliers

• Ad Hoc Payment Option:– A management fee of 15% will be charged

to the total cost of activity less VAT.– An agreed year end performance

remuneration

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