This business report provides information about Safaricom a telecommunication company for the company CEO. Included in the information are the terms of reference for the business, findings which has information about the business and product overview, criteria for market segmentation and finally an analysis of the current consumer and marketing situation at the company with the main aim of establishing customer as well as market opportunities for the business. The paper will conclude on how the planned product market will fit with the current product and consumer profiles with the company’s respective consumer group.

Terms of reference

Bobby Collymore, the chief executive officer of Safaricom has requested this report on consumer and market analysis and to write a comprehensive marketing plan for the business.

Safaricom

Safaricom is a leading global telecommunications company with operations in 20 countries across Asia and Africa. The company offers mobile voice and data services (mobile with prepaid and postpaid services), GSM mobile service, broadband internet connection, postpaid mobile connections, broadband service, DTH, turnkey telecom solutions and national and international long distance services to carriers. The company is ranked among the best performing technology companies in the world and with more than 250 million customers across its operations.

Scope

While doing research for this company, it was quiet important that their suitability for corporate use was considered and following the company rules and regulation as pertains to getting information from their employees.

Criteria used to segment consumer markets

In this analysis, a representative selection procedure was used to interview 10 percent of the employees in five African countries and also five Asian countries between the periods of January 1st and February concerning the following;

  • Overall satisfaction of the current benefits package and tariffs.
  • Problems that are encountered when dealing with customer care representatives.
  • Suggestions for improving communication policies

Limitation

  • Because the company has many operations in different countries, we could not get information from all the countries.
  • Language barrier in some countries that we needed an interpreter thus losing the first hand information luster from the interviewee
  • It was hard to obtain some additional information.

Assumptions

It has been assumed that information received from the interviewer is right although due to the fact that some employees may represent information.

Background information

Safaricom is a leading global telecommunications company with operations in 20 countries across Asia and Africa. The company offers voice data, broadband services and national and international carriers. The company has the purpose of ensuring that customers are able to access their otherwise clogged customer services call center and make calls without any interference from congestion whatsoever.

Findings

Business and product overview

Safaricom offers a wide range of product and services. These include;

  • Voice service both in prepays and post pay services. The prepay service allows Safaricom consumers to enjoy the freedom and flexibility to pay as they top up their accounts with Safaricom recharge vouchers. Safaricom post pay offers customers the convenience of a monthly billing with additional benefits of making competitive calls.
  • Internet services. Safaricom offers the safaricom broadband modem (Huawei E220) with a Safaricom router (Huawei E960)
  • Call back services. Safaricom introduced into the market a call back ringtone service called Skiza to entertain callers while they wait for the other person to answer a call. The service is available for all subscribers.
  • The company introduced a first of its kind; mobile money transfer called Mpesa. This is an innovative mobile transfer solution that enables customers to transfer money to other subscribers. This service has gained a lot of popularity especially in the African and Asian markets where the company offers its services.
  • The company has also partnered with other handset manufacturers like Nokia to offer affordable mobile phones to its subscribers.

Key criteria for segmentation of consumer markets

  • Consumers are awarded a loyalty point program called ‘Bonga Points’ in which for every $1 used, a customer accumulates 10 points which are equivalent to making a call for one free minute or five free texts.

Analysis of the current customer and marketing situation

  • Customers were generally not satisfied with the current congestion in the company’s network.
  • Problems were encountered with the way the customer services people serve the consumers. Most consumers reported that they were not satisfied with the services they were offered.
  • Older customers had difficulties with the way they were treated. They complained of being harassed by customer executive employees who seemed not to understand their exact needs.
  • Customers between the ages 18 and 30 had few complaints from the customer services people.
  • Customers also had the issue with making international calls. They complained that making such calls could take unnecessary longer time trying to get connected.
  • The customers also had complaints with the quality of international calls. Although both ages complained, the older generation had more complaints that the quality of international calls was way below the required standards.
  • Customers had complaints concerning the customer service department whom they accused of taking longer than expected to take their calls.

Conclusions

  • Most complaints centered on the quality of international voice call services. The Safaricom CEO should look into the matter and ensure that customers are given the best quality they deserve especially in a competitive market where they can look for the same service in another rival company.
  • Most complaints also came from the loyalty benefit system. Customers complained that on trying to redeem the ‘Bonga’ points.
  • Improvements also need be undertaken in the customer service department to cater for all age groups especially the old people who had more complaints.
  •  On the issue of service quality, Safaricom should undertake to decongest their network operations and allow customers to make calls easily.
  • The company should also look into the issue of customer service department keenly as most of the complaints emanated from there. On the issue of taking longer to pick customers calls, the company should look into the possibility of increasing the customer service centers to cater for a high and growing number of new subscribers.

Recommendations

  • The CEO should meet with the customer service head of department to discuss the serious nature of complaints from the department. This is especially on the issue of aged customers’ complaints and the issue of congestion when customers try calling the customer services.
  • The CEO should also look into the possibility of adding more network boosters to complement the existing ones so as to improve call services across the country. On the issue of international calls, the CEO should hold talks with other CEOs and suggest ways of improving the quality of international services especially due to poor quality of international calls.
  • Improve technology under the ‘Bonga points’ redemption program to ensure that customers enjoy a hustle free point redemption.
  • Customer service people should be re-oriented on customer good customer service to ensure that customers are treated the best way to avoid them looking into the possibility of switching to the rival network.

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