1.

0 EXECUTIVE SUMMARY

Mauritius telecom is preparing to improve its mobile services more profitable in a slow growing
demand market.

Mauritius Telecom is targeting specific segments in the consumer market taking advantage of the
growing concern for cost savings due to rise in the cost of living. Mauritius Telecom can grow its
mobile services more profitable by providing Orange mobile customers with a new experience of
telecommunication based on convergence and innovation to satisfy their daily needs. With the
new high capacity routers already installed to enhance the capacity and efficiency of the mobile
core network, good brand image and new mobile services Mauritius Telecom can cope with its
competitors, maintain and attract more customers.

The primary marketing objective is to increase our market share by 10 percent in the mobile
services market. The primary financial objective is to grow our mobile services profitably by 10
percent per year over the next three years.

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2.0 SITUATION ANALYSIS

Mauritius Telecom incorporated in 1988 under the name Mauritius Telecommunications

Services (MTS), it acquired the assets of Overseas Telecommunications Services (OTS) in 1992
and became Mauritius Telecom. It is recently name as Orange and is the leading
telecommunications operator and services provider in Mauritius. Mauritius Telecom rebranded
all its mobile and Internet offers to Orange in April 2008. Orange is about to improve its mobile
services profitably in a slow growing demand market. With nearly 82% of the population of
Mauritius having a mobile phone the total market revenue for the mobile services in Mauritius is
estimated around Rs4, 510,000,000 per annum. Fierce competition, accelerated pace of
technology and price pressure are squeezing profitability. EMTEL is one who is continuously
jockeying for a stronger market position and seeking bigger sales. MTML is the one having
difficulty to meet the new challenging needs of the customers. To gain market share in this fierce
competitive environment Orange must carefully target specific segments in the consumer market
with valued and desired mobile services and plan for the next generation mobile services to keep
brand differentiation, momentum and esteem going.

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2.1 MARKET SUMMARY

Orange mobile Service’s market is separated into two main categories, consumers and business.
Both contribute about 59% to total revenues of Mauritius Telecom. The remainder of the
revenues is generated from other services provided by Mauritius Telecom. The consumer market
is further segmented into post paid and prepaid packages. The market size for mobile services in
Mauritius is approximately 82% of the population of Mauritius.

As the market for mobile services is becoming saturated in Mauritius there is slow market
growth for both Orange and its competitors namely EMTEL and MTML (Mahanagar Telephone
Mauritius Ltd). This is so because all services being provided by Orange is also provided by
EMTEL and at the same price. EMTEL and Orange use the same technology to develop new
products. However, MTML provides just the basic services like calling services, messaging
services and caller tunes at relatively low prices compared to Orange and EMTEL. To develop
new services will require high funding and also as the market is becoming saturated more
advertising and promotion will be needed.

The most significant trends for the market are greater marketing and advertising efforts, rapidly
expanding networks and technological advances, low price for the services offered, good quality
customer service, constantly new and improved services and applications. Orange does not
target only a particular segment of people. It targets the population as a whole. This is so because
everybody has a mobile phone now, from young kids to old people. However, not all people can
afford a mobile phone and all its services. For people who uses the phone just in emergency
cases Orange mobile services offers them the prepay package. Orange also targets the different
types of income earners with different mobile services.

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The market can further be segmented on level of education and interest in technology. This is so
because more and more people are educated and becoming more and more technology driven,
they are adopting all types of new technology being provided whether it is for mobile phones or
for use in everyday life. Which had result in all mobile service providers are trying to satisfy its
customers both actual and potential ones with new technology products and services for their
mobile phones at competitive price.

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2.2 SWOT ANALYSIS

Mauritius Telecom has several strengths on which to build on its mobile services but has some
major weaknesses. The opportunities are high demand for mobile internet, new high capacity
routers already installed to enhance the capacity and efficiency of the mobile core network,
people are keen on cost savings, use of mobile marketing, growing demand for 3G TV on all 3G
mobile phones and high definition Television on iPhones. The threats are fierce competition,
downward pricing pressure and slow growing demand market.

• STRENGTHS

Mauritius telecom can develop its mobile services on six strengths.

 Strong margins and returns - The company had made very good and improved profits
over the three recent years from its mobile services.

 Market leader - Orange is the market leader in Mauritius mobile services market. It
recorded a 58% share of the mobile services market in 2009.

 Access to a wide variety of information - The major shareholders of Mauritius

Telecom include the government of Mauritius, the State Bank of Mauritius, the National
Pensions Fund and France Telecom whom together hold a strategic alliance and share a
wide variety of information.

 Experience, resourceful and dedicated workforce and management team – This

help to improve the quality management practices, performance and create a competitive
advantage for Mauritius telecom by improving its core competencies for its mobile
services.

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  Good mobile network coverage and quality – Orange mobile network coverage
covers all the island of Mauritius and is of good quality.

 Good brand image – Orange has a strong brand image and brand awareness both at
local and international level for mobile services.

• WEAKNESSES

Mauritius Telecom had enjoyed a phenomenal rate of development and it is now one of the top
enterprises in the Mauritius. Despite Mauritius Telecom rebranded its mobile services to Orange,
it has 3 weaknesses:

 Poor customer services – There has been many complaints receive concerning the
customer services from clients. The issue will be addressed through retraining of staff
dealing with customers to acquired better communication skills, provide better assistance
and deliver better quality service.

 Average mobile services – Mauritius Telecom’s mobile services is not full updated
compare to the industry level. Especially the mobile internet at a fixed tariff and mobile
television were lagging behind. Part of the problem was not every mobile series was
compatible to mobile internet and mobile television system of Orange. To overcome this
weakness heavy investment will be made to improve and provide better mobile services.

 Undifferentiated services - Orange offers the same mobile services as one of nearest
competitor which is EMTEL and at the same price. To offset this weakness, the company
will put emphasis on the quality of the network Orange offers.

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 • OPPORTUNITIES

Mauritius telecom can take advantage of five market opportunities for its mobile services.

 Increasing demand for mobile internet – Many people wants to connect to the
internet via their mobile especially the age group of 15 to 30 years old. By meeting this
demand the company can improve its profit.

 New high capacity routers already installed to enhance the capacity and

efficiency of the mobile core network – This will make the quality of the mobile
network much better than competitors and add value to Orange. Thus improving
customer satisfaction and can attract more customers that will result in an increase profit.

 People are keen on cost savings – People are more interested in cost savings. By
lowering the prices to a reasonable level for all mobile services, this will maintain and
attract the customers of competitors thereby increasing profit and surpass the competitors.

 Use of mobile marketing – Organizations are searching for an advertising media which
is at low cost, quick, efficient and reaching a large spectrum of people. By using mobile
marketing, the company can reduce its advertising cost and generate revenue. SMS
marketing will be use in promoting its products and services through mobile phones
where messages will be sent directly to Orange mobile users. It will also help to keep the
Orange users in touch with the company and build a satisfactory relationship with the
customers.

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  Growing demand for 3G TV on all 3G mobile phones and high definition

television on iPhones – By promoting 3G TV on all 3G mobile phones and high

definition television on iPhones on a fixed tariff for a package per month and per 100
kilobyte per channel this can result in an increase in profit. As people send most of their
time with their mobile phones and less time at home with their busy schedules they have
less time to watch TV at home. By reaching an agreement with Canal Sat Maurice,
Parabole Maurice and MBC, Orange can offer some channels of these three television
broadcasters so as to provide an entertaining mobile television to the Orange users.

• THREATS

Mauritius Telecom faces three main threats for its mobile services.

 Fierce competition – EMTEL offers the more innovative and interesting mobile
services in Mauritius. MTML had already started to improve its mobile services.
Therefore a persuasive advertising must be undertaken to cause brand preferences for
Orange and aggressive sales promotion.

 Downward pricing pressure – EMTEL and MTML frequently launch sales promotion
to gain sale and market share and also low switching cost to rival brands are causing
prices to fall for some contents of mobile services provided. Still the objective to increase
sales revenue by 10% during three years is realistic with the new mobile services given
the fall in prices in some contents of mobile services.

 Slow growing demand market – The demand in the mobile service market in
Mauritius is growing slowly. Because of this, Orange must try to attract the customers of

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 EMTEL and MTML by offering the most competitive price for its mobile services in
order to increase profit.

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2.3 COMPETITION

The main competitors of Orange are as follows:

• EMTEL
As the market challenger EMTEL has 39 percent share of the mobile services market in
Mauritius. EMTEL is an international joint venture between Currimjee Jeewanjee & Co. Ltd. and
Millicom International Cellular SA which launched its mobile telephone operations in Mauritius
in May 1989. It has an excellent distribution channel and its customers comprises of mostly
young people. EMTEL offers the most innovative and interesting mobile services in Mauritius
and are constantly improving their mobile services. However quality of mobile network EMTEL
offers is not of high quality.

Below are the list, features and price of the mobile services offered by EMTEL.

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 SERVICES FEATURES PRICE

Prepaid choose when you top-up with no Starter kit is Rs 125

bills or contracts obligations

Your pre-set credit limit

Postpaid mentioned on your monthly bill Depending on credit limit set by
helps you keep your mobile customer.
charges in control, keeps track of
your usage and ensures that your
mobile phone is not misused.

Log on wap.emtel.com and access 1) Rs0.30 per 100 KB

Emtel WAP all your favourite websites on

2) Monthly fee of Rs100
Emtel prepaid or post paid. for unlimited internet access.

(depending on compatibility of
mobile phone to the system)

Make your friends listen to you 1) A monthly fee of Rs. 10.

Emtel Caller Tunes favourite song every time they call 2) Rs. 9 tariff to buy a
you. You can either set one Caller Tunes
common tune for all or customise
a tune for individual callers.

Build your peer group with Emtel 1) Rs50 fixed tariff to

Favourite Numbers, a free service change 1, 2 or 3
Emtel Favourite Numbers which you can subscribe till 3 numbers
numbers (Pre paid subscriber from
Mauritius and Rodrigues) to 2) Rs 0.96/minute

benefit discounted tariff from your

EMTEL prepaid for your phone
calls via your favourite numbers
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You can have access to Facebook Rs. 0.03 per KB
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Facebook® on Emtel via your mobile phones. It's all
available on pages designed to fit a
 • MTML

MTML founded itself in Mauritius in the year in 2003 and had just recently entered into the
mobile service market in 2006. It has 3 percent share of the mobile services market in Mauritius.
MTML is an Indian Government-owned telephone service provider. MTML targets mostly
young people by providing basic mobile services such as SMS and call at the lowest price. Its
distribution channel is limited. Nevertheless the quality of mobile network and mobile services
MTML offers are below of that of EMTEL.

Below are the list, features and price of the mobile services offered by MTML

SERVICES FEATURES PRICE

Prepaid choose when to top-up with no bills or 1) Price varies till

contracts obligations Rs1500.according to the
MTML mobile phone
chosen.

Postpaid Your credit is limited to Rs1000 for 1) Monthly payment

call to other operators. Rs250 (unlimited calls
to MTML mobile)
SMS are free and unlimited via other +additional fees for
MTML and other networks. calling to other
networks.

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 2) Price varies till
Rs1500.according to the
MTML mobile phone
chosen.

3) SMS are free.

For prepaid:
Messaging 1) 25 cents per SMS sent to
Send text messages to your friends
or family. an MTML mobile or
fixed MTML line.
2) 50 cents per SMS sent to
another mobile network.

For postpaid:
SMS are free

Call Talk to your friends or family. Prepaid:

Rs.1.00 per minute to EMTEL or
Orange mobile network.

Rs0.40 per minute to an MTML

phone.

Rs0.75 per minute to a fixed

MTML line

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 Rs2.20 per minute to other fixed
line in Mauritius.

Postpaid:
Monthly payment Rs250
(unlimited calls to MTML
mobile) +additional fees for
calling to other mobile networks
or fixed line.

Make your friends listen to you 1) A monthly fee of Rs10.

MTML Caller Tune favourite song every time they call

you. You can either set one common 2) Rs7 tariff to buy a Caller

tune for all or customise a tune for Tunes

individual callers. Only bollywood
songs are available.

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2.4 PRODUCT OFFERING

The mobile services of Mauritius telecom provide the following standard features:

• Offers: However you decide to pay; we have a variety of great value plans to suit your
needs. Pick the one that's right for you.

 Prepay: choose when you top-up, with no bills or contracts

 Post Pay: Orange offers two packages to suits its customers lifestyles

Package 1: It allows the customer 6 hours of talk time to orange mobiles phones
as well as fixed phones, plus 350 SMS at only Rs 499 per month for a 24 month
subscription and Rs 599 per month for a 12 month subscription.

Package 2: It offers the customer 10 hours of talk time to both orange mobiles
and fixed phones as well as 2 hours to other mobile operators. Additionally it
offers 500 SMS and 100 MB of data download at only Rs 999 per month for a 24
month subscription and Rs 1099 per month for a 12 month subscription.

• Mobile internet : Mobile internet lets you enjoy internet on your Orange mobile (Prepay
or Post pay)

 Access mobile internet at only Rs 50 for 20 MB, Rs 100 for 50 MB, and Rs 200
for 150 Mb if you are an existing orange prepaid customer
 Access mobile internet at Rs 100 for 50 MB, Rs 200 for 150 MB, Rs 499 for 1
GB, and Rs 1599 for 5 GB if you are an existing postpay customer

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 • Mobile entertainment: Mobile Entertainment reports the latest news, views and analysis
from the fast-moving mobile content industry, across a unique combination of print,
online, email, mobile and specialist industry events.

 Orange TV on Mobile: Orange TV on Mobile brings you television on your

mobile phone wherever you are at only Rs 250 per month whether you are a
postpay or prepay customer for unlimited viewing of TV channels or you can pay
as you watch as from Rs 2 per minute.

 Top Downloads: Download wallpapers, ringtones, videos, and games for less
than Rs 50 on your mobile itself

 Ego mobile phone: Ego is an exclusive Orange mobile phone specially designed
for mobile TV and mobile internet as from Rs 6999 for postpay customer and Rs
7999 for prepay customer. The EGO mobile phone consists of the following
features such as 2.4 inches screen for your visual comfort, TV compatibility,
WAP, 3 Megapixels camera, MP3 player, Digital zooming, 60 MB internal
memory which can be expanded to 2 MB with microSD memory card, Calendar,
Email, and Handsfree.

 Live Chat: Orange Chat is an exciting network of small communities that

together create one of the most interesting places and chat with instant messages.

 News: access local and international news, people, and sports for less than Rs 30

 Info: Get the latest stock exchange rates, consult your horoscope, and check out
weekend plans around the island for only Rs 20

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 • Roaming: Roaming allows you to take your phone with you when you travel overseas
and use it anywhere Orange has a roaming agreement.

• Information services: access information about live sports scores and the latest
headlines, cinema listings, travel and local info, listings and lots more on your mobile
itself at only 60c for prepay customers and 50c for post pay customer per SMS.

 SMS Info: SMS info allows you to keep up with the latest news on all your topics
of interest including the weather forecast, football, cinema, horoscope, news, and
more.

 RadioVision: watch your favorite presenter performing live in the studios of

Radio Plus from your mobile phone

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The first year sales revenue from mobile services will be projected at Rs2,984,000,000 and likely
to increase by 10% for the next two years with 449,102 the current Orange users and 120,432 the
forecasted future Orange users Which is based on sales of mobile internet at fixed tariff, new
channels added to orange TV, reduced tariff on calls and SMS.

The features of the new mobile services offered are explain as follows:

• Mobile internet will deploy new mobile technologies such as the high speed mobile
packet access including setting up of a 3G+ technology that will allow the user to
download data up to 7.2 Mbps and upload data up to 1.8 Mbps. Also, it will help in video
surveillance in any region where there is orange mobile network coverage.

• The network is steadily moving towards island-wide 3G coverage, allowing orange to

launch new offers including mobile internet and mobile TV. Orange mobile TV has
already been introduced however prior to an agreement with MBC channels, Canal Sat
Maurice and Parabole Maurice more channels will be introduced to allow its customers to
enjoy more of their favourite TV programmes on their mobile phone.

• Orange will also set up calling services such as caller line identification to enable the user
to screen the incoming calls.

• Orange will also set up a cell information display that will allow the user to know the
location in which he is at present.

• Orange will be launching collect SMS that will allow the user to send messages even if
they have no credit where the fees of the message will be refunded by the receiver.

• Orange will also be considering about lowering the minimum easy transfer from Rs 20 to
Rs 5 that will allow the customer to transfer money more easily to another account.

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2.5 DISTRIBUTION

Orange will use one level of distribution channel which are:

• Own retail outlet - Orange Shops to sell credit through E-Voucher, prepay scratch cards
and post pay, assistance in activating user account to the various mobiles services
provided, mobile phones and accessories.

• Food and beverage retailers - Shops, supermarkets and hypermarkets will sell Orange
SIM cards and credit through E-Voucher and prepay scratch cards.

• Banking institutions –State Bank of Mauritius, Mauritius Commercial Bank, Mauritius

Post and Cooperative Bank and Banque des Mascareignes will provide ATM services to
Orange users to recharge their mobile account. State Bank of Mauritius and Mauritius
Commercial Bank will also provide Orange users who have an account with them the
facility to recharge their mobile account by SMS.

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3.0 MARKETING STRATEGY

3.1 OBJECTIVES

The objectives are defined in specific term so that management can measure the progress and
take corrective action to stay on track. These include the following:

• To aim at increasing the revenue from prepay services by 10% per year in three years.

• To increase the revenue from post pay services by 10% per year in three years.

• To achieve an increase revenue from mobile internet by 10% per year in three years.

• To boost up revenue from orange TV.

• To generate a reasonable revenue from mobile marketing.

• To improve its challenge of efficiency, creating more flexible work and providing a more
competitive edge.

• To innovate in line with its vision “To be a Premier World Class Infocom Services
Provider” so as to increase its market growth.

• To keep abreast with the latest technological developments and to continuously provide
excellent customer service.

• To take advantage of the new opportunities that are emerging from the convergence of
technologies and the ever-increasing sophistication of our mobile users’ demands.

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3.2 TARGET MARKETS

Orange’s strategy is based on a positioning of product differentiation. It does not have a

particular segment because people of all age use at least the basic service that is call services.
However, for the post pay services offered by Orange it is mostly companies who provide it to
their employees. Therefore for this segment it will be for mostly large companies with more than
150 administrative staffs. For the value added services or other mobile services like mobile
internet, mobile entertainment the target market will be mostly the mostly young school to
graduate students who want to personalise their phone and to have multimedia services.
However, this segment could also be described as demographic factors like age and education
factor. This can further be segmented according to income groups, the services are pretty much
costly thus when all cost for the mobile services are totalled it creates a big amount. Therefore
medium to high income earner group could be a possible segment in this market.

3.3 POSITIONING

Using branding as product differentiation; Orange will aim at grabbing the leader place of
mobile service provider position since its is already the national mobile service provider in
Mauritius. Once the new services will be launched, its brand communication and positioning will
accentuate its socio-cultural integration in Mauritius. It intend to accompany Mauritians in their
daily lives. Our marketing will focus of creating a strong network with the richness of content
creation to offer our customers a totally new experience in terms of digital entertainment.
Moreover to make Orange in a leading position it has to be able to deliver unique packages
entwining the best of the telecom, web and content worlds to all connected screens, whether
that’s a mobile, TV, Netbook or Tablet. Furthermore Orange is planning to place much
emphasis on customer service in order to satisfy its customers.

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3.4 STRATEGIES
Below are the marketing strategies for the orange mobile services of Mauritius Telecom that will
be used.

• SERVICE

 Mobile Internet

 Deploy new mobile technologies such as High Speed Mobile Packet Access (HSPA),

 Setting up a 3G+ technology, allowing downlink of up to 10.0 Mbps and uplink of up to

3.0 Mbps.

 Video Surveillance in any region with the help of Orange mobile Internet.

 Mobile Entertainment

Mobile TV - The network is steadily moving towards island-wide 3G coverage, allowing

orange to launch new offers including mobile internet and mobile TV. Orange mobile TV
has already been introduced. More channels such as MBC channels, Canal Sat Maurice
(Canal +, Canal + Sport, Canal + Famille, Canal + Cinema and MCM) and Parabole Maurice
(Supersport 3, Mangas, Tps Star, M6 Music Hits) will be introduced to allow its customers to
enjoy more of their favourite TV programmes on their mobile phone.

 Calling Services

Orange will also set up Caller Line identification in its service. This will allow any orange
user to screen the incoming call (that is to see the full names of their incoming calls).

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  Information Services

Orange will also set up “Cell Information Display” that will allows its customers to know in
which particular location they are when moving from one place to another. This will be
displayed on the main screen on their mobile phone and it will be display automatically.

 Messaging Services

Launching of Orange collect SMS –Orange will launch collect SMS that will allows its
customers to communicated even in cases their balance is nil on the orange mobile where the
sender will send the messenger to the receiver and the receiver will have to pay to get the
message in cases, for example, when the sender’s balance is nil

 Orange Easy Transfer

Orange minimum easy transfer which is Rs. 20 will be reduced to Rs. 5. This will allows
orange user to transfer the lowest minimum money from their balance to another balance.

 Orange Loan Service

Setting up an Orange Loan Service where Orange mobile user will be able to take a loan up
to Rs. 10 once in case when the balance is nil and after recharging it this amount will be
deducted automatically from the balance. Then the user will be able to take another loan.

• PROMOTION
Below are listed the promotional strategies that orange will adopt for its mobile service.

 Promotion on E-Voucher when putting E-Voucher of Rs. 100 Orange users will get 30
SMS and 60 minutes free, when putting an E-Voucher of Rs. 200 Orange users will get
60 SMS and 120 minutes free and so forth.

 Promotion on the Fun Tones of Orange mobile service(Reduce the price of the Fun Tone)

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  Free SMS and free calling during specific day and time.

• DISTRIBUTION

 Our channel strategy is to use selective distribution through many retailers, orange
and Telecom shops.

 Setting up of Orange teleshops in two places of the island. This strategy is adopted in
order to be closed to their orange mobile customers and also deliver high quality value to
these customers. Places where these Orange teleshops will be situated are decribed as
follows:

 Beau Bassin.

 Reduit

 Planning to make an Orange Expo at Swami Vivekananda International Convention

Centre in order to attract mass customers to see the latest mobile service offered by
Orange.

 Setting up of shop in shop concept in Phoenix Les Halles, that is, opening an orange
teleshop there.

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 • PRICING

Below ae the pricing strategies that orange will be using for its services.

 Reducing the price of both the monthly subscription Fun Tones fee and the price of
each fun Tone to Rs. 5.

 Changing the existing price for the Prepay Package for using the Orange mobile
Internet by adopting the Bundle Price Strategy.

Price (VAT Volume Excess To buy,

Package
inc.) included charged at send SMS to 8684
Mobile Internet 20 MB Rs 40 20 MB buy int20mb
Mobile Internet 50 MB Rs 90 50 MB Paying (Rs10/MB) buy int50mb
Mobile Internet 150 MB Rs 190 150 MB buy int150mb

 Reducing the Unlimited Viewng Package for Orange TV on mobile from Rs. 250 per
month to Rs. 225 per month.

 Increasing the Pay as you go package for Orange TV on mobile from Rs. 2 per
minutes to Rs. 3 per minutes.

 Setting the following prices for the video surveillance service for the Orange mobile
users

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 Subscription Monthly Fee Rs Price for extra 100 Kb Rs

1 GB 399 0.22

2 GB 749 0.22

5 GB 1499 0.22

10 GB 2499 0.22

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 • MARKETING COMMUNICATION

To communicate the mobile services that orange will be providing, the following marketing
communication strategies will be used:

 Creating Orange Pamphlets and Brochures.

 Sending SMS to Orange mobile user each time there is a modification and innovation in
the mobile service.

 More advertising on television and radio.

 Sponsorship of sport events, music programmes competition on MBC and talent shows.

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3.5 MARKETING MIX

Below are the summary of action programs that will be used during the first six months and in
the month of December to achieve the stated objectives.

• JANUARY

In January we will launch new Orange teleshop at Reduit and the Easy Transfer of
Rs. 5. This will be advertised on media channels like televisions, radio and also on
newspapers. Additionally, the existing price for the Prepay Package for using the Orange
mobile Internet will be change by adopting the Bundle Price Strategy.

• FEBRUARY

As the advertising campaign continues, we will launh the Orange collect SMS and offer
promotion on the Fun Tones by reducing its price. Furthermore free SMS and free
calling hours will be provided to Orange mobile user on the 14 th February (St. Valintine
Day) from 8.00 am to Midnight.

• MARCH

We are Planning to organize an Orange Expo at Swami Vivekananda International

Convention Centre, Pailles, in order to attract mass customers who would be able to view
the latest mobile service offered by Orange and also to discover orange new innovations
(3D TV, HD TV on iphone) and promotional offers at the orange expo 2010.Moreover,
we will be setting up the cell information display system that will allow our user to know
the location in which they are as it will be displayed on the screen of their mobile.
Finally, we plan to set SMS Mobile Marketing to inform the user of any new
modification or innovation in the mobile service.
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 • APRIL

We are planning the setting up of caller line identification that will allow our user to
display the incoming call. Finally, we are going to deploy new mobile technologies in the
setting up of a 3G+ technology that will allow the user to upload and download more data
than they can do at the moment.

• MAY

We will launch our new mobile entertainment service the Orange TV with an aggressive
advertising campaign to make people aware of the new service that will be provided by
Orange Mobile services. The advertising campaign will be mostly made on T.V, radio
and newspapers. Along with these methods of advertising we will publish pamphlets
about the Orange TV service facilities.

• JUNE

In this month we intend to launch a new service of video surveillance from your mobile
phone and we will also communicate the price of the packages for video surveillance and
our future promotions on this service. We will also announce our decrease our price for
our Orange TV unlimited viewing package. And also we plan to increase the price of our
Pay As You Go package for Orange TV as it is forecasted that the number of
subscriptions will increase as it was launched with a low price. Moreover, we will be
initiating our new mobile service, the Orange Loan Service.

• DECEMBER
In December another free SMS and free calling hours will be provided to Orange mobile
user on the 25th of December (Christmas) from 00.01 am to Midnight.

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Marketing Management (MGT 2060) Assignment Page 30
3.6 MARKETING RESEARCH

Marketing research will help us identify specific features and benefits of our market segments.
We will be performing research like a brand equity research to know, how favorably do
consumers view the brand? And this will help us position our brand as well as give it a value. We
will also conduct a customer satisfaction research to be able to know the perception of customers
and if they are satisfied with the product and also we will measure and analyse customers’
attitude towards our product what they like, why they will prefer the services of the competitors,
why will they choose EMTEL/ MTML instead of Orange. Feedback from the surveys and
market tests for new products will help us ameliorate our product and service line. The market
research will help us identify in which market segment we are most successful.

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4.0 FINANCIALS

The first year sales revenue from mobile services will be projected at Rs2,984,000,000 and likely
to increase by 10% for the next two years with 449,102 the current Orange users and 120,432 the
forecasted future Orange users. The company wages will be increased by Rs4,000,000 for the
new employees employed with an addition increase of Rs1,000,000 per year over the next three
years. The other operating expenses for the mobile services will not exceed inflation over the
next three years. Operating expenses will rise by 0.60% in 2011, by 0.30% in 2012 and by 0.50%
in 2013. Additional advertising cost is anticipated to rise up to Rs2,000,000 per year over the
period of the plan. Additional sales promotion will cost Rs10,000,000 per year over the next
three years. Investment of Rs8, 000, 000 will be incurred to improve and develop the new mobile
services. The agreement between Canal Sat Maurice and Parabole Maurice with Orange will cost
Rs 54,000,000 each for an agreed period of three years. The opening of the 2 new outlets and the
new shop in shop in Phoenix Les Halles will cost Rs6,000,000 in total.

According to the financial performance indicators, Orange will still be profitable with the
additional costs even if sales revenue remain the same for the next 3 years. Financial
performance indicators used are gross profit margin and net profit margin calculated as follows:

Sales revenue, operating expenses gross profit and profit from operations are figures for the year
ended 30 December 2009.

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GROSS PROFIT MARGIN = GROSS PROFIT x 100
TURNOVER (SALES REVEUNE)

Gross Profit Margin (it will remain the same with or without the additional cost as cost of sale
will not be affected)

= 2,001,995,707 x 100 = 73.83 %

2,711,507,306

NET PROFIT MARGIN = PROFIT FROM OPERATIONS x 100

TURNOVER (SALES REVEUNE)

YEAR ACTUAL 2011 2012 2013

WITH THE ADDITIONAL COSTS

277,891,950 x 100 204,329,854 x 100 214,029,120 x 100 207,511,393 x 100

NET PROFIT 2,711,507,306 2,711,507,306 2,711,507,306 2,711,507,306

MARGIN
= 10.25% = 7.54% = 7.89% = 7.91%

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WORKINGS:
OPERATING EXPENSES:
Rs1,093,682,553

2011: Rs1,093,682,553 x 0.60% = Rs6,562,096

2012: Rs1,100,2444,649 (Rs1,093,682,553 + Rs6,562,096 ) x 0.30% = Rs3,300,734

2013: Rs1,105,762,376 (Rs1,100,2444,649 + 3,300,734) x 0.50% = Rs5,517,727

THE AGREEMENT BETWEEN CANAL SAT MAURICE AND PARABOLE

MAURICE WITH ORANGE:

Yearly cost = Rs54,000,000 x 2 = 108,000,000/3 = 36,000,000

PROFIT FROM OPERATIONS:

2011: Rs277,891,950 - Rs(5,000,000 + 2,000,000 + 10,000,000 + 8,000,000 + 36,000,000 +

6,000,000 + 6,562,096) = Rs204,329,854

2012: Rs277,891,950- Rs(6,000,000 + 2,000,000 + 10,000,000 + 36,000,000 + 6,562,096 +

3,300,734) = Rs214,029,120

2013: Rs277,891,950- Rs(7,000,000 + 2,000,000 + 10,000,000 + 36,000,000 + 6,562,096 +

3,300,734+ 5,517,727) = Rs207,511,393

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Marketing Management (MGT 2060) Assignment Page 34
5.0 CONTROLS

Controls are being established to cover implementation and Mauritius Telecom mobile services
marketing activities.

5.1 IMPLEMENTATION

Mauritius Telecom is planning tight control measures and to closely monitor quality and
customer service satisfaction through Bottom-Line Tracking. So as quantifies the impact of the
programs in terms of the business results such as sales revenue, profit margin, volume of prepaid
scratch cards and E-Voucher sold to retailers, customer satisfaction and increase in Orange
mobile users. Customer satisfaction will also be monitored through the number of customer
complaints received. This will facilitate to quickly react upon problems that may occur and
correcting them. Mauritius Telecom will make use of benchmarking to constantly monitor and
enhance the organization’s performance by finding and implementing the best practice to keep
pace with today’s competitive and ever-changing environment to avoid deviation from the plan.
Other early warnings signals that will be monitored on a monthly basis as signs of deviation
include sales revenue from distribution channel and targeted market segments, consumers’ usage
rate of each prepaid scratch cards and E-Voucher, subscriptions and cancellation of the new
mobile services offered to Orange mobile users and operating expenses.

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Marketing Management (MGT 2060) Assignment Page 35
5.2 MARKETING ORGANISATION

Mauritius Telecom Executive Head Commercial, Mr. Emmanuel André, holds over all
responsibility for all of the company’s marketing activities. Mauritius Telecom will be doing
sales campaigns, consumer sales promotions and public relations efforts to create brand
preferences and brand loyalty. This will help to create a competitive advantage over its
competitors. The executive structure of Mauritius Telecom is shown below.

Chief Executive
Officer
Mr. Sarat Dutt LALLAH

Executive Head
Executive Head Network and Info Chief Financial

Commercial Systems Officer

Mr. Emmanuel André Mr. Davendra Mr. Cyprien MATEOS
UTCHANAH

Head of Market
Offers
Mr. Bobby Ramsoondar

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