Marketing Strategy Of Mtn Guinea Case Study Solution
Problem Statement
In the late 1990s, the Guinean Government presented an attractive proposition for foreign companies that wanted to invest in the country. The telecommunication industry, was one of the major sectors that attract more foreign investors. Guinea is a small market, with only 12 million people, but strategic geographical located, with huge reserve of natural resources that’s worth a fortune, makes the country more attractive.
The telecommunication industry is also one of the fastest growing industries in Guinea. The growth is due to the huge increased number of mobile phone users in the market, where customers shift from one mobile operator to another, or use both and more for different interests/reasons.
In 2006, MTN was the first foreign company to join the telecom industry with the slogan of ‘’wherever you go’’. Second largest telecommunication company in Africa after Vodaphone. MTN transformed the telecommunication industry in Guinea, into a competitive ground with a better products and services, all with an affordable price. Easily the company took over the industry leadership. Later on, competitions become more intense by the penetration of other world leading mobile operators, ORANGE and In the year 2013, the company lost its leadership and Orange became the leader of the market.
According to the Regulatory Authority of the posts and telecommunications in Guinea, on the first quarter of 2019, Orange still leading the industry with 62% of market share, and revenue increase to 65%. MTN second (2) with only 24% of market share, with increase revenue of 17%, third (3) and Intercel closed by the govenment at the end of 2018.
Chart-1: Competitive Analysis
Being the first foreign telecom to enter the market, was considered as a big factor of it competitive advantage. But due to some trouble that the company encountered during it journey regarding strict regulation rules from the government, MTN management system, and the intense completion in the market, MTN decreased in both revenue and market share from 2013 to 2017.
Part II: Case Analysis
Chapter One: Introduction
MTN is the second largest telecommunication company in Africa, presents in more than 15 countries in the continent, and leader in most of the attractive markets such as Nigeria, where the company generated in 2018, 30% of the group revenue. Guinea is also considered as one of MTN attractive market, But MTN Guinea is still in trouble, struggling to increase market share and revenue since 2013. Well-presented brand image,but customers/subscribers still continue shifting to other mobile operators. The researcher examined the situation carefully and believes that is due to targeting the wrong segments. In this chapter the researcher is going to present the purpose of the Study, scope of the study, Significance of the study and the research framework.
Purpose of the Study
Marketing Strategy is considered as an important principle to organize and appropriate allocation of the organizational resources to financial profit to the consumers which will help to the organization in the recognition of the organizational Resources constraints, analysis, recognition and market segmentation and will help to understand the characteristics of the components market and can be useful in developing and achieving one clear organizational perspective (Shafi'i, 2013). Aker (2009) In this regard, states that Marketing Strategy includes different operations such as positioning, pricing, distribution and global strategies, that their success rate need Sustainable competitive advantage and their development need to a proper understanding of the target market and its requirements (Hoeven Kim at al, 2011: According to the Shafi'i, 2013).
The main center of the Marketing strategy is appropriate allocation and coordinating activities and marketing resources in order to supply operational objectives in terms of market and product. In this way, the main problem related to the realm of the Marketing strategy is consists of determining the specific markets for a family of products or a specific product and designing and implementing of the appropriate programs in the field of mix marketing according to the needs and demands of the potential customers of the target market and gaining competitive advantage for organizations (Shafi'i, 2013).
As we know the aim of all businesses is to make profit. To increase sales and customer values. In emerging markets like Guinea, where the number of mobileusers increase vary fast, and customers pattern/behavior changes quickly makes the market attractive but also very challenging if the company targets the wrong segment.
MTN is currently facing both internal and external challenges that require development to further optimize its industrial structure, and improve management level. This thesis aims to achieve three (3) goals:-
- Find out the internal and external factors that affect MTN marketing strategy in Guinea
- Clear segments of MTN in the Guinean Market
- Determine the target markets and MTN positioning, putting forward a clear implementation scheme.
Scope of the Study
The scope of the study is only based on the STP theory (segmentation-Targeting-Positioning), which is well-known as ‘’ one of the most important strategic concepts, contributed by the marketing discipline to business firms’’. The study is only focused on MTN Guinea, evaluated the influence factors of the telecommunication Industry regarding MTN Guinea.
During the process of the research,the researcher elaborated a survey questionnaire based on the industrial influences, internal forces &challenges, and MTN marketing behavior. Internal & external analysis tools were used for an effective study that include, P.E.S.T, 5 forces, S.W.O.T, S.T.P and 4ps.
Significance of the Study
This research document will be very useful to MTN and the telecommunication industry in Guinea, since it will show the broad picture of the industry influences and give MTN a marketing map plan in Guinea.
It will also be helpful to some other foreign corporations in terms of marketing approach based on customer segments, how to choose your right target customer segments and give a value proposition.
And finally it will be beneficial to researchers and students who want to dig more on corporate macro/micro environment in terms of marketing research techniques, since it will display in details the internal and external factors of influence, and organizational marketing behavior in the market.
Research Framework
The framework below describes the working plan process which include:- Case introduction (problem description, purpose of the study), internal & external analysis(P.E.S.T, 5 forces, S.W.O.T +4 PS), STP model & strategy statement, and finally MTN marketing strategy implementation’ options............
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