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Safaricom is the leading telecommunications company operating in Kenya. It provides a host of products and services for telephony, GPRS, 3G, EDGE and data and fax.
It has been faced with a number of problems with time, one of which is the entry of many other telecommunication companies into the market over the years. The companies include, Telkom Orange, Yu and Zain. So far the main rival is Zain. The problem caused by the entry of other companies is that they bring about unwanted competition (decrease in market share). This problem can be solved by conducting a marketing research.
The first step in the marketing research process is identifying and defining your problem. Defining the problem would mean expanding on it and explaining why it should be seen as a problem. In this case Safaricom has identified number of competitors as threat of losing customer reducing the market share and which will lead to lower profit margins and growth at the end of the year, contrary in what they want.
Step two is to develop you approach, generally speaking the approach should be developed almost exclusively around a defined set of objectives. Clearer objectives developed in step one will lend them to a better approach development. Developing your approach should consist of an honest assessment of your team’s market research skills, establishing a budget, understanding your environment and its influencing factors and formulating hypotheses.
Safaricom has to find an approach to counter the problem they are facing, which is competition. A chosen team at Safaricom came up with a number of possible solutions and chose one that was effective. The first solution would be to introduce lower call rates for su ...