comparing pricing strategies etisalat vs du
DESCRIPTION
TRANSCRIPT
Muhammad Inamuddinmc080401378
Master of Business AdministrationMarketing
Project title
Compare the Pricing Strategies of Etisalat in comparison with
that of Du
Summary of presentation In depth pricing strategy study carried out of two leading
companies. Data collected randomly from the population of 110. Survey continue for two days. Market survey carried out and questionnaire used. Interview carried out of the employees. MS Excel® used to process data.
Summary of presentation (Cont.) Instead of reduction in price Etisalat giving promotions. Etisalat is good quality of service provider. Etisalt is using Allowance, Promotion and segmented
strategy. Majority of customer is of Etisalat. Pricing of Etisalat is higher compare to du. Etisalat packages are F&F plan, Favorite country plan
and Super off peak hour plan.
Summary of presentation (Cont.) Du in its 3rd year reached market share 32% end of 09. Du is cheap service provider. Du offers Bundle, Allowance & discount, and segmented
strategy. Majority of user preffer to call from du. Du unique feature is per second pricing. Packages of du are simple to understand. Etisalat packages are More credit, More time and More
international.
Introduction of the Project 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.
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.
UAE is eight in the world having lates technology of telecommunication. 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 .
Description of Project Pricing is one of the major components of four marketing
mix. Pricing is an important strategic issue because it is
directly related to the product positioning. Price is considered Central to marketing. Comparison of an organization’s pricing strategies with
other similar organizations is a very important topic for marketers of an organization.
Price strategies are made by also keeping the competitor price strategies in mind to provide the consumer competitive price.
Back ground of Project Only two cellular companies are in UAE. Etisalat is Pioneer and leading company in this region. DU few years back launched, and customer attracted
due to low price offer. Etisalat provides good quality of service with high pricing. Du provides low quality of service with low price.
Objectives of the project
To determent consumer perception about both companies
Compare the pricing strategies used by both organizations
To know the exact cause that people are really switching because of less price.
To determine the factors on prices by one company due to change of prices by other company
Significance of project To be able to understand the pricing strategies of two
leading cellular companies. A guideline to the students of marketing. To understand the trend of price and to set or, suggest
setting of the product price as a marketer. To aware the marketing firm and companies Interested
to know the situation of pricing of telecom in UAE. Useful to both companies under study and also other
cellular companies outside this region.
Methodology Data collection sources
Primary sources Customers Employee of companies under study
Secondary sources Companies web sites Magazines Advertisement News papers
Methodology (cont.)
Data collection toolsData collected by customers of both mobile services by
asking questions.
Sampling Data collected from all class of user Sample frame for data was those who using mobile
service more than two years Population Size 110. Random sampling technique
Data Processing
Data collected through questionnaire from customers. Data collected through employee of companies. Data collected through the websites and magazines. Data than processed through MS Excel®. Collected data represented in form of table for
comparison. Collected data from customer represented in form of bar
graph.
Data AnalysisOptions Etisalat Remarks du Remarks
Registration Charges 165 One time 55 One time
Bonus Amount 10 One time 100 4month recharge 20times
Renewal Charges 50 Yearly 0 4month recharge 20times
local call charges 0.3 /min 0.3 60 seconds
local call second minute charges 0.3 /min 0.3 60 seconds
International call charges 2.4 /min 2.4 60 seconds
International call Off peak 1.89 1400-16:00, 21:00-07:00 1.89 1400-16:00, 09:00-07:00
Off Peak local call 0.24 1400-16:00, 00:00-07:00 0.3 same
Local sms 0.18 /sms 0.18 /sms
International SMS 0.6 /sms 0.6 /sms
MMS local 0.45 /mms 0.45 /mms
MMS International 1.8 /mms 1.8 /mms
DATA access 0.1 /KB 0.1 /KB
Favorite country VS More credit plan
Options Etisalat Remarks du Remarks
Favorite country plan More credit- unlimited validity
local call charges 0.33 /min 0.3 60 seconds
Bonus Amount 0 30% One month validity
local call second minute charges 0.33 /min 0.3 60 seconds
International call charges -30% 30% less 2.4 60 seconds
International call Off peak -30% 30% less 1.89 60 seconds
Off Peak local call 0.264 /min 0.3 same
Local sms 0.3 /sms 0.18 /sms
International SMS 0.6 /sms 0.6 /sms
Country modification charges 10 per number 0 Not applicable
Global FF VS More time
Options Etisalat Remarks du Remarks
Global friend and family More time- 60days validity
Monthly charges 20 / month 0 Not applicable
Bonus Amount 0 30% max
International call charges 1.92 any thee number 2.4 60 seconds
International call charges off peak 1.51 1400-16:00, 21:00-07:00 1.89 60 seconds
local call charges 0.3 0.3 60 seconds
local call charges off peak 0.24 1400-16:00, 00:00-07:00 0.3 same
SMS charges 0.18 0.6 same
Super off peak VS More Int’l
Options Etisalat Remarks du Remarks
Super off peak plan More International -60 days validity
local call charges 0.36 Not allowed call not allowed
Bonus Amount 0 60% max
local call second minute charges 0.36 Not allowed call not allowed
International call charges 1.231400-16:00, 21:00-
07:00 2.4 60 seconds
International call Off peak 0.76 00:00-07:00 1.89 60 seconds
Off Peak local call 0.36 Not allowed
Local sms 0.3 Not allowed
International SMS 0.6 0.6 same
Customer interest due to economical price Customer interest due to price
Etisalat
du
both
0
20
40
60
80
100
* Both indicate that customers have same opinion for both products.
Customer trust due to price charged
Customer trust
Etisalat
du
do not know
32
33
34
35
36
37
38
39
40
41
Do not know includes both customer who do not care about the prices and those who are not satisfied with both services.
Customer shift due to reduction in price
Customer loyalty
Etisalat
dudo not know
0
5
10
15
20
25
30
35
40
45
Do not know includes both customer who want to shift due to offer and those who want are not interest due to any offer.
User of individual and both services
Customers of product
Etisalat
du
both
0
10
20
30
40
50
60
70
Both represents, that customer who carries both services at once.
Over all perception of Service
Both represents, to those customers who are not satisfied with bother services.
Customer perception about service
Etisalat
du
both
0
10
20
30
40
50
60
70
80
90
Perception about the company image
Both represents, customer perceives equally to both companies
Customer perception about companies
Etisalat
du
both
0
10
20
30
40
50
60
Service as a solution provider
Both represents customers are not satisfied with both companies.
Solution of their problem
Etisalat
du
both
0
5
10
15
20
25
30
35
40
45
Packages information
Do not know indicates that the have interest to explore the packages.
Customer knowledge about new packages
Etisalat
du
do not know
0
10
20
30
40
50
60
Customer shift due to low price offer
Do not know includes both customer who do not know about the price and those who due to inconvenience do not want to shift.
Customer shift due to price
Etisalat
du
do not know
0
10
20
30
40
50
60
70
80
90
100
Conclusion/Findings (Etisalat)
Etislat is good quality service provider. Etisalat packages are more complex and a normal user
can not understand easily Etisalat packages are bit tricky for a normal customer. Etisalat uses promotional strategies rater than reducing
the prices. Etisalat services proved that they are the need of
customers. Etisalat over all packages are far more expensive as du.
Conclusion/Findings (du)
Du is average quality service provider. Du proved that it is economical service provider. Du packages are less tricky. Du uses allowance strategies for most of its packages. Du promotions are not that much as etisalat. Customer are not fully depends on du due to its quality
of service.
Recommendations (Etisalat)
Need to build lost trust on customers by clear and self explanatory packages.
Need to focus on the allowance strategies further. Need to increase the loyalty providing the straight
and clear offers and packages. Need to take advantage of its quality of services and
need to introduce the allowance. Etisalat need to add charges on call diverting
services to restrict the caller to use the du at the expense of etisalat.
Recommendations (du) Need to improve the quality of services, as du become
secondly connection in the market. The user of du, mostly uses etisatat as well to be in
touch with the world. Du required to make its own identity despite the low call
provider.
Thank You