A Marketing Plan for Bahrain Telecommunications Company
It was in 1981 when Bahrain Telecommunications Company (Batelco) was first established and became the lone provider of public telecommunications and other related products and services in Bahrain. Among the many services offered and provided by the company are fixed and mobile telephone services, data communication, e-commerce, internet access, international leased circuits, global managed data, integrated messaging, maritime communications as well as other related voice and data communications solutions. During the recent past years, the telecommunications company had also engaged in a policy of regional diversification that involved the establishment of joint business ventures in Saudi Arabia, Egypt, Kuwait and Jordan ( 2003).
Based from records and results gathered, Batelco had successfully established itself in the telecommunications industry along with the growing telecom market. An increase in the number of mobile users of 390, 253 were observed as the year 2002 closes. This figure actually represents more than half of the population, resulting to a marked 57 percent rate of market penetration. Moreover, an increase in the international roaming list of destination was also obtained, covering almost over 91 countries by 203 operators. It was perhaps the gross revenue acquired by the company from mobile telecommunications that serve as its greatest contributor. In 2002, mobile telecommunications had accounted for 39 percent of Batelco’s gross revenue, a significant 5 percent increase of revenue in comparison to its 34 percent revenue rate in 2001 (2003).
Over years of continuous service, Batelco had carried on with its policy of lessening its international direct dialing (IDD) taxes, cutting the cost of making phone calls to greater than 70 countries by amounts of up to 190 fils. This was the eighth time such exercise was conducted in a matter of six years. Aside from the IDD rates, the telecommunications company also created deep slashes in its mobile phone taxes wherein up to 40 percent was taken out from rentals and 26 percent from phone calls. In 2002, the company’s regional networks were further expanded when the company had signed a memorandum of settlement with Omantel in the Sultanate of Oman (2003). However, in 2003, the telecommunications company was bound to give up its monopoly status as the country’s telecommunication market is being opened up for competition. After being able to enjoy its monopoly status since its initial establishment, Batelco is now opened up to more competitive setting. As MTC-Vodafone makes its way into the telecommunications industry at the end of year 2003, Batelco is set to face with its toughest challenge yet (2003). Brought about by the changing business ground and new competitive surroundings, Batelco must undertake the task of restructuring its overall marketing performance and operations.
Situational Analysis
a. Internal Environmental Analysis
The current internal status of the telecommunications company is described based on its latest product line and services offered.
Product
In the past years, Batelco has been focused on the provision two main product portfolios. One is a product designed for customer care and billing. The other one is a mediation system designed for the provision of billing data collection and service provisioning services. Other products that are presently under development are the following:
- PAN (Performance Appraisal of Networks): A network performance monitoring mechanism based on Windows and UNIX for telecom networks use.
- SMSC (Short Messaging Service Center)
- Calling Card Platform/IN Prepaid
Services
In terms of generating product sales, the company exerts effort of supporting its product line. Bahrain Telecommunications Company facilitates this necessary product support by offering various services such as the warranty and post warranty support services as well as installation and configuration services. To this date, products developed by Batelco are made under projects delivered by its group of consulting services. Consulting, product development and implementation are among the services offered by the telecommunications company’s consulting services group. Through this group, Batelco is able to come of with new products that are closely related or customized according to the needs of the customers.
Aside from these consulting services, Batelco is constantly increasing its market scope through its development of its roaming services. In 2004 ( May 25, 2004), Batelco had struck a deal with Armenia Telephone Company (Armentel) enabling Batelco mobile users to receive and make phone calls even while traveling to Armenia. The deal made by Batelco with Orascom Telecom Tunisie S.A. (Tunisiana) has also led to the establishment of roaming facilities involving Bahrain and Tunisia which was launched last February. Similar to the Armenian deal, this roaming service offered by Batelco enabled mobile users to make and receive phone calls while traveling to Tunisia. Batelco also signed an agreement with the Telecommunications Company of Iran (TCI) to allow Batelco mobile users to make and receive phone calls even in Iran. Moreover, this agreement between the companies is also geared towards the improvement of the long-term commercial and economic relations between Bahrain and Iran. This is also in response to the growing demand for roaming services from Batelco in Iran.
In addition to the consulting and roaming services, Batelco is also reaching out its services to financiers and business within the country, providing them access to vital financial information on the move. Through text message format, Batelco mobile is now able to provide financial and business information via its mobile-based information service.
b. External Environmental Analysis
The current external status of the telecommunications company is described based on the background of the telecommunication market and the company’s prospective competitor.
Market
Being a company catering to telecommunication and internet services, Batelco is able to cover a large and diverse target market, both within the local and international setting. Locally, the shareholders of the telecommunications company include the Bahraini and GCC citizens, key commercial and financial organizations, quasi-government institutions and the Government of Bahrain. As mentioned, the activities of the Bahrain Telecommunications Company are not solely concentrated on the local market. Through its participation on principal investment initiatives geared towards the development of regional and international telecommunications between GCC states and other countries, Batelco is able to offer its telecommunication services overseas.
Competitive Environment
In June 1983, Mobile Telecommunications Company (MTC) was established as a joint venture among Kuwaiti investors and the state through the Kuwait Investment Authority that manages the government’s ventures. In January 1985, MTC began to establish its initial mobile network known as the ETACS system. It was in 1986 when this mobile network was launched commercially. In 1989, Ericsson contracted the company so as to increase its network capacity by 20, 000. However, the Gulf War in 1991 had caused the destruction of the infrastructure. By July 1993, the network was rebuilt with a capacity which stood at 70, 000 (2003).
MTC had signed a partner agreement in September 2002 with Vodafone. These conjoined companies had agreed to cooperate towards the development of products and services, targeting on domestic customers and international travelers. Under MTC’s existing brand name, the company had agreed on marketing Voldafone’s international products and was committed to officially rebranding its products as MTC-Vodafone. This branding strategy was designed by the company not only to uplift the profile of Vodafone in the Middle East region but also to enable MTC to benefit from its partnership with a popular global name. In March 2003, this branding strategy was made effective. After receiving its GSM license on April 22, 2003, MTC-Vodafone is now set to be Bahrain’s second mobile operator. The company holds 60% of the new licensee while the other 40% is dependent on Bahraini individual and institutional investors.
Among its newly introduced service include the launching of audio text services, which is basically interactive and/or recorded announcement information and entertainment services, offered for Bahraini customer of MTC-Vodafone. Through this service, MTC-Vodafone customers can participate in TV competitions through the 900 numbers. Also, this enable users to send messages from a mobile devise into a database and get information in return like ring tones and information services. In order to deliver services of high standards and quality, MTC-Vodafone has also launched its own customer care facility located at Bahrain’s International airport. The telecommunications company has shown remarkable development within a short span of time. In April 2004, MTC-Vodafone was reported to secure 10 percent of Bahrain’s market based from the summative results of its performance during its first quarter. Being able to offer similar services in addition to their branding strategy, Batelco foresees much potential on MTC-Vodafone as a strong competitor.
The Market Plan
Based from the presented internal and external conditions encompassing Batelco, the following risk factors were identified:
Internal Factors:
1. The development and introduction of new functionalities as well as the improvement of existing system modules that is in coordination with customer expectations.
2. The ability of the company to encourage, train and maintain qualified and skilled technical, sales, financial, marketing and management personnel who will be able to overcome the challenges of growth.
3. The ability of Batelco to provide for an initial capital adequate enough to push the company to the next level. These funds will enable the company to hire the needed resources, develop system enhancement and offer new services and product lines on a timely basis.
External Factors:
1. Based from the apparent and rapid growth of the telecommunications, the competition between similar companies is also expected to increase. Moreover, now that the monopoly system in Bahrain’s telecommunication sector has been lifted, it is expected that the establishment of new competitors will further increase the current competition status.
2. As the company is covering several international connections, the business may be subject to unpredictable changes including regulatory requirements, taxes and other trade barriers, low acceptance level of localized products within foreign countries, complexity of handling international operations, potentially adverse tax responsibilities, as well as the resulting costs required to localized products in foreign countries.
3. Exchange rate fluctuations among foreign currencies may pose as a problem for the business particularly on its operations and financial conditions as these unexpected fluctuations can lead to exchange losses.
4. Certain laws implemented in foreign countries may services and products without the security of corresponding intellectual property rights. At a substantial degree, this factor could significantly affect the company operations and financial conditions.
5. The development of third party relations with several consulting and integrator firms may prove to be an integral factor in the company’s growth strategy as these organizations can help enhance the company’s marketing, customer support efforts and sales.
In line with the various internal and external factors of the telecommunications company, the company has come to a conclusion that certain aspects of the business should be given greater priority. These aspects include the company’s market, human resource management and its customer support system. By concentrating into these main aspects, the company aims to strongly establish itself to the telecommunication market by increasing its standards on personnel employment, reorganizing its department teams and through the introduction of a customer relationship management system that will further increase its adaptability on varying customer needs and expectations. Realizing that the market and its personnel are the company’s vital factors that will enable it to overcome competition and improve its current services, Balteco intends to focus and base its marketing plan on these factors.
Oracle Customer Relationship Management (CRM) Strategy
In order to enhance its customer services, Bahrain Telecommunications Company will make use of a customer relationship management program. The Oracle Corporation, as the largest software company in the world, may be used for this particular project. Known as the Oracle Customer Relationship Management (CRM), this program may facilitate the company’s need to enhance and reorganize its customer care and customer service.
The Oracle CRM modules will be able to let Batelco use its various features such as Oracle TeleService, Oracle Order Management, Oracle TeleSales, Oracle Sales Online and Oracle Service Fulfillment Manager (SFM). These innovative features can help Batelco to reorganize its business processes through sales and service channels, eventually creating a more customer-focused system and implementing a proficient go-to-market strategy. More importantly, the application of the Oracle CRM project will provide a mechanism that can help the company to identify and comprehend their customers’ behavior. This in turn can help the company anticipate their customers’ demand and respond quickly to the rapidly changing customer needs. The Oracle CRM project will also provide the telecommunications company with an incorporated environment that will enable it to track its opportunities for sales, establish accurate sales forecasts, create an exceptional multi-channel customer service and respond immediately to customer orders. Aside from the strengths and richness of Oracle’s specific processes, the Oracle CRM project is flexible enough to adapt itself to Batelco’s needs and requirements.
Oracle Human Resource Management System (HRMS)
In response to the objective of the company to improve its human resource department, the application of the Oracle Human Resource Management System (HRMS) may be done. This program will help the company to incorporate cost-effectiveness and speed within the company’s principal human resource processes, which includes hiring, salary planning and appraisal. Aside from these advantageous effects, the Oracle HRMS will enable company managers and executives to formulate better and timely decisions. Employees on the other hand will be able to access and revise their staff records and submit expense claims as well as training requests through self-service. This in turn will reduce the burden and responsibilities in the administrative level. Perhaps, the most important feature of this HRMS project is that it will help company obtain the best employees it can hire. Through proper employment procedures, the company will efficiently select among applicants who have the required skills and potentials, which can easily be enhanced towards the attainment of the company objectives.
Consulting Services
In order to support its CRM project, the company may choose to maintain its consulting services that operate in conjunction with product development. This is a helpful asset for the company to establish stronger customer relations and advance its product offerings. While this approach is clearly geared for a wider market scope and better relationship with the customers, this consulting service can help the company pursue various project and new products that is based from the expectations and needs of the customers themselves. Eventually, this new innovation may be introduced to the public through use of the same consulting services.
This system however, may be improved through restructuring and designation of a multinational marketing and sales team. These teams will help establish both direct and indirect sales channels. Aside from indirect channels, these teams will also be helpful in building direct customer relations as well. Partnering with other companies such as Compaq for instance, can help the company gain credibility, geographic reach and customers that would not otherwise be probable. Particular support program partnerships will be established so as to assure cultivation of these relationships.
Budget Setting
Based from the market plan, resources will have to be allotted mainly for the acquisition and incorporation of the information technology programs, hiring of the needed IT professionals and the training needed for the introduction of the new system among the personnel. So as to evaluate the capacity of the telecommunications company to push through with this market plan, financial background needs to be assessed. In order to do the evaluation, sales forecast and expenses of the company would have to be compared.
Sales Forecast
The calculation of the revenue is done separately for each product it provides and for maintenance of its consulting service. For a clearer presentation (Figure 1), the revenue is divided according to the products offered by the company which includes customer care and billing products, prepaid IN products and short messaging products.
Figure 1: Monthly Sales Forecast of Batelco
Expense Forecast
The following graph below present the monthly expenditures of the company, with advertising and travel as its major cause of expenses (Figure 2). The other graph shows the comparison of Batelco’s sales and expenses (Figure 3). Apparently, the presentation shows that the company is highly capable of supporting its market plan.
Figure 2: Monthly Expense Forecast of Batelco
Figure 3: Summary of the Sales/Expense Forecast of Batelco
Implementation and Controls
Aside from the adequacy of resources the company should establish its outline of means on how market plan is to be carried out successfully. Below is the summary of these procedures:
1. Oracle CRM and HRMS Projects
The company should contact the Oracle Corporation firsthand regarding the discussion of its application of the program into Batelco’s current system. Both companies should arrange and ascertain that all necessary settings and requirements needed to successfully incorporate the programs are met. Skilled professionals should be taken in to incorporate these programs into the company. All protocols regarding the use and maintenance of these systems should clearly be relayed to the company’s personnel. A structured evaluation of the efficacy of these methods should be done based on a definite time plan. Beforehand, the company should secure basic procedures for minor problems that they can encounter with regards to the new systems.
2. Consulting Services
The company should establish skilled and competent professionals who will be assigned to be its sales team. Partnerships with third parties can be established so as to facilitate the necessary reliability and customer information. Progress reports should be secured from these teams so as to make further enhancements that may be necessary.
Aside from implementation procedures, control must be employed so as to ensure the successful implementation of the marketing plan. For this purpose, the control utilized by the company is placed on its marketing organization. The primary functions of this company department include channel management, program management, marketing, account management, direct sales, product management and development of proposals and contract. Having these responsibilities enable the company to ensure that all the said components of the marketing plan are implanted successfully within the company. Moreover, the department is made up of marketing teams with professionals that have considerable experience in marketing solutions within the local and international telecommunications market.
Credit:ivythesis.typepad.com
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