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Marketing Research

Satisfactory Essays
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 subscribers and introduce a competition which only Safaricom subscribers can participate. The second solution Safaricom can have a charity event were the money the make goes to a special cause for example food aid, tree planting etc this would effect the market socially. And the final solution would be Supremacy to control the telephony industry by outmatching other operators to be the first to launch Apple’s iPhone 3G. To do all this they have to carry out extensive research to help in a decision.

Safaricom decided to be the first to launch the Apple’s iPhone 3G increasing the competitor advantage. The third step would be to market research to enable the firm to make an appropriate decision on all the elements of the marketing mix as well as reduce the risk of investing in an unprofitable marketing venture.
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