This is a two component case study that investigates the advanced way of serving the rural poor of Celtel Nigeria. Case A supplies a summary of the mobile telecommunications market in Nigeria as of mid 2007, along with detailed demographic and socioeconomic information. At the time of the case, Celtel Nigeria is the second biggest mobile telecommunications business in the Nigerian marketplace. The company has experienced significant success in serving Nigeria's cities and larger towns, but has only recently shifted its attention to serving poorer consumers in rural areas - a substantial but as of yet under tapped marketplace. However this shift from urban to rural has not been trouble-free, and although some 50% of Nigeria's population reside in rural regions of reaching them the challenges sometimes seem overwhelming.
The absence of a trusted national electricity power system means that the firm's rural telecommunications towers need to be run on diesel generators, resulting in diesel fuel costs and high maintenance. Theft and vandalism of high-priced communications equipment and generators has appeared as a major problem, causing the need to use full time security guards on practically every base station site outside of urban areas. Case B presents how Celtel has been able to implement an extremely innovative marketing strategy to serve low-income rural customers. At the heart of this marketing approach is what's called the Rural Acquisition Initiative (RAI), a micro-franchising model involving partnerships with local entrepreneurs.
PUBLICATION DATE: March 27, 2009 PRODUCT #: ES0971-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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