Muhammad Inamuddinmc080401378

Master of Business AdministrationMarketing

Project title

Compare the Pricing Strategies of Etisalat in comparison with

that of Du

Summary of presentation In depth pricing strategy study carried out of two leading

companies. Data collected randomly from the population of 110. Survey continue for two days. Market survey carried out and questionnaire used. Interview carried out of the employees. MS Excel® used to process data.

Summary of presentation (Cont.) Instead of reduction in price Etisalat giving promotions. Etisalat is good quality of service provider. Etisalt is using Allowance, Promotion and segmented

strategy. Majority of customer is of Etisalat. Pricing of Etisalat is higher compare to du. Etisalat packages are F&F plan, Favorite country plan

and Super off peak hour plan.

Summary of presentation (Cont.) Du in its 3rd year reached market share 32% end of 09. Du is cheap service provider. Du offers Bundle, Allowance & discount, and segmented

strategy. Majority of user preffer to call from du. Du unique feature is per second pricing. Packages of du are simple to understand. Etisalat packages are More credit, More time and More

international.

Introduction of the Project The United Arab Emirates is not specifically known agriculture country

and the main source of earning is Oil and gas, most of the population is expatriates.

The ranked of UAE is 1st, in all the Arab states in the 2009-2010 Networked Readiness Index (NRI) and 23rd among all 133 countries assessed.

UAE is eight in the world having lates technology of telecommunication. The TRA (Telecommunication Regulatory Authority) remains at the

forefront of the success of the country's telecom sector. It is continuously considering ways to further intensify competition in the UAE telecom market .

Description of Project Pricing is one of the major components of four marketing

mix. Pricing is an important strategic issue because it is

directly related to the product positioning. Price is considered Central to marketing. Comparison of an organization’s pricing strategies with

other similar organizations is a very important topic for marketers of an organization.

Price strategies are made by also keeping the competitor price strategies in mind to provide the consumer competitive price.

Back ground of Project Only two cellular companies are in UAE. Etisalat is Pioneer and leading company in this region. DU few years back launched, and customer attracted

due to low price offer. Etisalat provides good quality of service with high pricing. Du provides low quality of service with low price.

Objectives of the project

To determent consumer perception about both companies

Compare the pricing strategies used by both organizations

To know the exact cause that people are really switching because of less price.

To determine the factors on prices by one company due to change of prices by other company

Significance of project To be able to understand the pricing strategies of two

leading cellular companies. A guideline to the students of marketing. To understand the trend of price and to set or, suggest

setting of the product price as a marketer. To aware the marketing firm and companies Interested

to know the situation of pricing of telecom in UAE. Useful to both companies under study and also other

cellular companies outside this region.

Methodology Data collection sources

Primary sources Customers Employee of companies under study

Secondary sources Companies web sites Magazines Advertisement News papers

Methodology (cont.)

Data collection toolsData collected by customers of both mobile services by

asking questions.

Sampling Data collected from all class of user Sample frame for data was those who using mobile

service more than two years Population Size 110. Random sampling technique

Data Processing

Data collected through questionnaire from customers. Data collected through employee of companies. Data collected through the websites and magazines. Data than processed through MS Excel®. Collected data represented in form of table for

comparison. Collected data from customer represented in form of bar

graph.

Data AnalysisOptions Etisalat Remarks du Remarks

Registration Charges 165 One time 55 One time

Bonus Amount 10 One time 100 4month recharge 20times

Renewal Charges 50 Yearly 0 4month recharge 20times

local call charges 0.3 /min 0.3 60 seconds

local call second minute charges 0.3 /min 0.3 60 seconds

International call charges 2.4 /min 2.4 60 seconds

International call Off peak 1.89 1400-16:00, 21:00-07:00 1.89 1400-16:00, 09:00-07:00

Off Peak local call 0.24 1400-16:00, 00:00-07:00 0.3 same

Local sms 0.18 /sms 0.18 /sms

International SMS 0.6 /sms 0.6 /sms

MMS local 0.45 /mms 0.45 /mms

MMS International 1.8 /mms 1.8 /mms

DATA access 0.1 /KB 0.1 /KB

Favorite country VS More credit plan

Options Etisalat Remarks du Remarks

  Favorite country plan More credit- unlimited validity

local call charges 0.33 /min 0.3 60 seconds

Bonus Amount 0   30% One month validity

local call second minute charges 0.33 /min 0.3 60 seconds

International call charges -30% 30% less 2.4 60 seconds

International call Off peak -30% 30% less 1.89 60 seconds

Off Peak local call 0.264 /min 0.3 same

Local sms 0.3 /sms 0.18 /sms

International SMS 0.6 /sms 0.6 /sms

Country modification charges 10 per number 0 Not applicable

Global FF VS More time

Options Etisalat Remarks du Remarks

  Global friend and family More time- 60days validity

Monthly charges 20 / month 0 Not applicable

Bonus Amount 0   30% max

International call charges 1.92 any thee number 2.4 60 seconds

International call charges off peak 1.51 1400-16:00, 21:00-07:00 1.89 60 seconds

local call charges 0.3   0.3 60 seconds

local call charges off peak 0.24 1400-16:00, 00:00-07:00 0.3 same

SMS charges 0.18   0.6 same

Super off peak VS More Int’l

Options Etisalat Remarks du Remarks

  Super off peak plan More International -60 days validity

local call charges 0.36   Not allowed call not allowed

Bonus Amount 0   60% max

local call second minute charges 0.36   Not allowed call not allowed

International call charges 1.231400-16:00, 21:00-

07:00 2.4 60 seconds

International call Off peak 0.76 00:00-07:00 1.89 60 seconds

Off Peak local call 0.36   Not allowed  

Local sms 0.3   Not allowed  

International SMS 0.6   0.6 same

Customer interest due to economical price Customer interest due to price

Etisalat

du

both

0

20

40

60

80

100

* Both indicate that customers have same opinion for both products.

Customer trust due to price charged

Customer trust

Etisalat

du

do not know

32

33

34

35

36

37

38

39

40

41

Do not know includes both customer who do not care about the prices and those who are not satisfied with both services.

Customer shift due to reduction in price

Customer loyalty

Etisalat

dudo not know

0

5

10

15

20

25

30

35

40

45

Do not know includes both customer who want to shift due to offer and those who want are not interest due to any offer.

User of individual and both services

Customers of product

Etisalat

du

both

0

10

20

30

40

50

60

70

Both represents, that customer who carries both services at once.

Over all perception of Service

Both represents, to those customers who are not satisfied with bother services.

Customer perception about service

Etisalat

du

both

0

10

20

30

40

50

60

70

80

90

Perception about the company image

Both represents, customer perceives equally to both companies

Customer perception about companies

Etisalat

du

both

0

10

20

30

40

50

60

Service as a solution provider

Both represents customers are not satisfied with both companies.

Solution of their problem

Etisalat

du

both

0

5

10

15

20

25

30

35

40

45

Packages information

Do not know indicates that the have interest to explore the packages.

Customer knowledge about new packages

Etisalat

du

do not know

0

10

20

30

40

50

60

Customer shift due to low price offer

Do not know includes both customer who do not know about the price and those who due to inconvenience do not want to shift.

Customer shift due to price

Etisalat

du

do not know

0

10

20

30

40

50

60

70

80

90

100

Conclusion/Findings (Etisalat)

Etislat is good quality service provider. Etisalat packages are more complex and a normal user

can not understand easily Etisalat packages are bit tricky for a normal customer. Etisalat uses promotional strategies rater than reducing

the prices. Etisalat services proved that they are the need of

customers. Etisalat over all packages are far more expensive as du.

Conclusion/Findings (du)

Du is average quality service provider. Du proved that it is economical service provider. Du packages are less tricky. Du uses allowance strategies for most of its packages. Du promotions are not that much as etisalat. Customer are not fully depends on du due to its quality

of service.

Recommendations (Etisalat)

Need to build lost trust on customers by clear and self explanatory packages.

Need to focus on the allowance strategies further. Need to increase the loyalty providing the straight

and clear offers and packages. Need to take advantage of its quality of services and

need to introduce the allowance. Etisalat need to add charges on call diverting

services to restrict the caller to use the du at the expense of etisalat.

Recommendations (du) Need to improve the quality of services, as du become

secondly connection in the market. The user of du, mostly uses etisatat as well to be in

touch with the world. Du required to make its own identity despite the low call

provider.

Thank You