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Marketing Research On Du Communication Network

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MKT2252

Marketing Coursework

Final Report

Henry Onu

1.EXECUTIVE SUMMARY:

The purpose of this report is to collect and collate data related to the customer satisfaction of Du mobile services. This measure can be accomplished in 2 ways. Firstly, determining how satisfied Du customers are overall with the quality of their service and various factors that make up their ratings. Secondly, since a large majority of Du’s customers are previous Etisalat customers, we felt a great source of information would be asking customers for a side-by-side comparison of the 2 services. Since Du is still a relatively young company and still the only competitor to the previous monopoly held by Etisalat, Du’s management decision problem is examining how to increase customer satisfaction and developing methods of encouraging customers to switch from Etisalat.

Through the use of a quantities questionnaire aimed at Du subscribers, the aim of the research to help both rate and rank factors the customer’s value when choosing a mobile service provider. Demographic data was collected to allow us to generate an image of the background and status of the average Du subscriber, which could then potentially be used to highlight market segments that Du has yet to establish itself, fully in. Qualitative focus groups were then conducted in an open-forum style with select subscribers who were encourage to voice their opinions regarding the quality and variety of services as well offering suggestions on how to improve Du services.

Quantitative data was collated and then analyzed using the SPSS software to create graphs and charts which were then interpreted using a variety of methods ranging from statistical to descriptive.

2. BACKROUND вЂ" COMPANY PROFILE:

2007 saw the long awaited launch of the nation’s first competitor to the government-owned Etisalat in the U.A.E. rapidly expanding telecommunications industry. The arrival of �du’ and its comprehensive package of services ranging from mobile line rentals to broadband services, with a strong emphasis on home consumers, was seen as a turning point in the UAE telecoms industry, with a promise of reliable services, competitive prices, and a wide variety of packages to combat the somewhat stagnant pricing policies that Etisalat had made available at the time. While Etisalat’s rates are highly competitive within the Middle East, they are still extremely costly in comparison to North American and Europeans rates, especially with regards to core services such as mobile services.

Du’s Objectives and Market Segmentation:

As the first recognized competitor to Etisalat, there was a heavy burden of expectation surrounding the introduction of Du’s mobile services. While customers were generally satisfied with Etisalat’s quality service, there was a general level of dissatisfaction regarding the lack of variety in packages available regarding the different types of customers they were serving. Du aimed to combat this by offering a larger number of packaged aimed at different users with different needs. For example, packages with a heavy focus on data usage such as GPRS/Edge were rolled out for more tech-savvy consumers, aimed at mainly professionals and teenagers who require the usage of the internet on their mobiles for business and personal satisfaction needs. Similarly, Du was also responsible for implementing the country’s first �per-second’ billing system, where consumers are billed per second and not rounded up to the nearest minute as they are with Etisalat.

Du’s diverse marketing strategy was aimed to penetrate several of Etisalat’s already established market segments in order try and establish itself and develop and immediate market share from which Du could further develop its offerings to consumers.

Performance levels and defining the Management Decision Problem

While little concrete data exists in measuring the satisfaction of Du’s early adopters, through word-of-mouth and gauging the reactions of Du’s customers, there is evidence of a prevalent level of dissatisfaction amongst Du mobile users. Speaking to members of the public has led to the following complaints most commonly being heard:

• Extreme levels of dissatisfaction with regards to the quality and reliability of Du’s mobile services. Again, while there is little in the way of evidence, it is our belief that a quantitative method of research such as a questionnaire targeting this specific aspect of the service should provide verifiable feedback as to whether this concern is validated.

• Inefficiency with Du’s вЂ?per-second’ billing option. Customers have reported problems with being overcharged on several occasions, thus not saving them any money. This is has been a particular complaint of former Etisalat customers, many of who made the switch in the first place in order to save money on calling charges.

Taking into consideration the above factors, it could therefore be concluded that Du’s Management Decision Problem is:

“Determining the level and causes of customer satisfaction amongst Du mobile customers, in addition to developing and implementing strategies to attract exisintng Etisalat customers.”

3. MARKET RESEARCH QUESTIONS / OBJECTIVES

3.1.Market Research Questions:

1. Determining how customers became aware of Du’s mobile services.

2. Recording how satisfied customers are with Du’s service (customer satisfaction).

3. Determining which service provider customers are more satisfied with (Du or Etisalat).

3.2.Marketing Research Objective:

The Marketing Research Objective was: to collect specific state-of-mind / intention data for identifying Du consumer and buyer behavior and their current brand/satisfaction awareness which would lead to help in raising awareness. In addition, the market research had to provide Du’s management with a better understanding on what satisfies the

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