1. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page1 INTERNATIONAL BUSINESS ACADEMY MAIN THESIS
ANDREI-LIVIU GRIGORICIUC 2015
2. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page2 INTERNATIONAL BUSINESS ACADEMY LEBARA GROUP
INTERNATIONAL MARKETING TOOLS FOR ENTERING INTO ROMANIAN
TELECOMMUNICATION MARKET MARKETING PLAN STUDENT: ANDREI-LIVIU
GRIGORICIUC SUPERVISOR: TINASHE WELLINGTON NYAMYKAPA
3. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page3 INTERNATIONAL MARKETING TOOLS FOR ENTERING
INTO ROMANIAN TELECOMMUNICATION MARKET MARKETING PLAN Author:
Andrei-Liviu Grigoriciuc 6000 Kolding, Denmark Kongebrogade 15
School: International Business Academy, Kolding Course:
International Sales and Marketing Management Class: 13 E
Supervisor: Tinashe Wellington Nyamykapa Number of characters:
99,237 Date: 09.05.2015
4. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page4 Resume:.. Lebara is a big sized company
which provides services around the world in many countries. The
Lebara Group is a telecommunication company which was founded by
Ratheesan Yoganathan, Rasiah Ranjith Leon and Baskaran Kandiah in
2001. They have worked for this idea in an airport. At the moment
they are looking for extending their platform around the word and
trying to keep together the emigrants. They have a strong and
ambitions vision about growing their active users until 2020 to 2
billion people. Romanian telecommunication market is small market
with around 22 million active. Romania is the country where the
sector of telecommunication growth after the revolution from 1989
when many international companies come to explore Romanian market.
Romanian Market is a dynamic and growing with three main actors:
Orange, Vodafone, Telekom. The market of calling services is not
very high developed and it is growing year by year. The competition
on telecommunication field is considerate to by high as the market
is not big, large. Thats why is important to choose the right
marketing tools for entering in Romanian Market. This fact is
following the problem proposal which has been choice for main
thesis. Marketing plan of Lebara Group for entering into Romanian
Telecommunication The next analysis, theories and several methods
which I have used in order to find out the right strategy for
expansion of Lebara on a new market. Since If started to collect
the primary data and secondary data which had an effect on all
analysis on choosing the strategy. Page4
5. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page5 The analysis and data collectedduring of
main thesis showed that there is a good market for developing and
the company has the power to expand with success on Romanian
market. Even if Romanian market is predominated of Orange, Vodafone
and the new company Telekom. However, the Romanian market looks to
be a potential market for Lebara and its services.
8. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page8 1. Introduction 1.1. Company Description
Lebara Group is a big international B2C telecommunication company
which provides services around the world. It has started in
September 2001 after Ratheesan Yoganathan, Rasiah Ranjith Leon and
Baskaran Kandiah came with the idea of migrant community. . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . Lebara Group is a low cost telecommunication company. The
Headquarter of Lebara Group is in United Kingdom, London at 25
Copthall Avenue. The company's initial product was selling sim
cards sold through independent mobile stores. . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . 2004: The Lebara Mobile has launched its first
international low cost service in the Netherlands, the company
partnered with mobile Telfort, a subsidiary of KPN 2009: Started to
use Vodafones infrastructure for Australia and United Kingdom. Then
extended in Denmark, Norway, Sweden, Spain and Switzerland. 2010:
Added France The Lebara Group has around 1400 employees and offers
services in Australia, Canada, Denmark, France, Germany,
Netherlands, New Zeeland, United Kingdom and other countries around
the world. Lebara use the mobile virtual network operator business
model. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . The ambition of Lebara is to
continue to care about migrant communities, supporting them and
their journeys by providing new experience directly to their lives.
The vision of Lebara was every time strong and looking back over
time, there are 10 years of experience. The company has operated
with partner network as: Australia Vodafone Denmark Telenor France
Bouygues Telecom Germany Telekom
9. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page9 Netherland KPN Norway Tele 2 Spain Vodafone
United Kingdom Vodafone . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 1.1.1. Current situation on telecommunicationmarket in Romania
Market Value: . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The
Romanian telecommunication services market increased by 1.3%
compared to 2014 and reached 5.3 billion dollars. Market Value
Forecast: In 2019 the Romanian telecommunication services market
will increase by 7.5% compared with 2014 and the value will achieve
5.7 billion dollars. Market Volume: . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . The Romanian telecommunication services market lost
0.5% customers in 2014 and reached a volume of 27.5 million
subscribers. Market Volume Forecast: In 2020, the Romanian
telecommunication market and services is forecast to have a number
of 26.7 million subscribers, a decrease of 2.8% since 2014.
Romtelecom was the largest telecommunications company in Romania.
Most actions have been organized by the Greek telecommunications
company OTE (54.01% stake). The Romanian state was also a minority
45.99% of the company. The company had a monopoly for the provision
of fixed telephony services by 1 January 2003. Mobile telephony has
grown rapidly in Romania after the revolution from 1989. The
Romanian mobile telecommunication market before 2003 was
monopolistic and as they said in an interview at the beginning of
years 1990, the telecommunication ways was uncertainty and the
price for services was very big. Because the telecommunication
market was monopolistic they had big prices for not those big
services.
10. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page10 Mobile telephony has grown rapidly in
Romania and had spectacular growth, both in terms of number of
users, which grew by 257% from 2003 to 2011, and in terms of
average monthly voice traffic carried by a user, which increased
from 56 minutes in 2003 to 205 minutes in 2011. . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . The Romania telecommunication services market
experienced a slight decline in recent years. The market value is
expected to rebound marginally to post low growth, while the market
will continue to decline. Although the number of fixed lines
increased by 7% between 2003- 2011, total voice traffic fell by
32%, due to lower traffic to fixed networks, which led to a
decrease in voice traffic achieved a monthly average fixed
telephone line at 106 minutes in 2011 compared with 170 minutes per
month in 2003 performed on average. The implementation of number
portability in 2008 helped to increase freedom of choice for users,
until now being ported over 580 thousand mobile numbers and over
280,000 fixed telephone numbers. Internet access services have
experienced continuous growth in these 10 years, the number of
connections (fixed or mobile) reached 10.8 million at the end of
2011, from 0.2 million in 2003. Regarding the fixed internet,
Romania occupies the first place in early 2012 in Europe in terms
of weight very fast 0 50 100 150 200 250 Mobile average monthly
voice traffic Fixed average monthly voice traffic Connections of
Internet 2003 2011 0 2 4 6 8 10 12 2000 2002 2004 2006 2008 2010
2012 2014 Orange SA Vodafone Group Cosmote RCS&RDS
11. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page11 connections of at least 30 Mbps, which is
about 45% of the total fixed connections (3.3 million). Market
rivalry: . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . The low
level of differentiation of services escalates intense rivalry with
players competing measures of quality, brand awareness,
functionality, and value pricing. Orange SA Orange SA (Dialog) came
in Romania with the name Dialog in 1997 and was one of the first
foreign telecommunication companies in Romania after revolution.
Orange SA is a French telecommunication company known under the
name "France Telecom. The company is a telecommunications operator,
providing fixed telephony, wireless telephony and data
transmission. The Orange group carries out business operations
through a number of subsidiaries under the Orange brand. Orange has
the main market around Europe, Middle East and Africa. The Orange
group carries out business operations with subsidiaries of Orange
brand. Orange has the main market around Europe, Middle East and
Africa. Vodafone Group Connex come in Romania in 1996 and was one
of the first foreign telecommunication companies in Romania after
revolution. Vodafone bought Connex actions in 2005 and became the
1st bigger rival for Orange. Vodafone Group is one of the largest
companies in the world and telecommunication services. The group
has over 434 million customers worldwide. The company operates in
the UK, Spain, Italy, Germany, Middle East, Africa, Asia, and other
countries in Europe.
12. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page12 The company distributes voice, messaging,
data and fixed telephony. The company is separated into two
geographical segments: Europa the Middle East and Africa and Asia
Pacific (AMAP) Telekom Romania Mobile Romania Telekom Mobile is the
mobile phone service provider operating in Romania under the brand
owned by Deutsche Telekom Telekom brand. The brand was launched on
13 September 2014 following the rebranding actions of Cosmoste,
name used since 2005. Cosmote began work as the Cosmorom in 1998.
RCS & RDS is a telecom service operator in Romania, founded in
1994. Company Romanian Cable System (RCS) has seen a rapid
development in the market of Romania, materialized first steps
carrying multiple communications networks in the country. Already
in 1996 the RCS Group is consolidate and it begins to increasingly
expand through acquisitions. On the 13rd September of 2014 the
company merged with Cosmote and Telekom. Telekom = Cosmote +
RCS&RDS 1.1.2. Conclusion In conclusion Lebaras services are
well developed and it can come with their offers on Romanian
market. The company has enough experience on the Danish market. One
of the characteristic of Lebara is to find the right offers and
price for services (which means mobile telecommunication,
Internet). The new solutions are to create innovative services for
peoples needs. The Romanian telecommunications market has gone
through few modifications since the privatization. Romanian market
became after the merger between Telecommunication Market % Orange
SA Vodafone Group Telekom(Cosmote+RCS&RDS)
13. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page13 Cosmote, RCS&RDS with Telekom most
competitive and the power of market is sharing in three principals
actors (Orange, Vodafone, Telekom). All this facts can permit
Lebara to believe it is possible to entering in Romanian market. .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 1.2. Problem proposal
2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . After Lebara's
success for entry into the Danish market has taken into
consideration for the next expansion into the Romanian market.
Business units showed the growing tendency. This is a favorable
fact for Lebara. Marketing plan of Lebara Group for entering into
Romanian Telecommunication For a good answer at my problem proposal
I did couple of developed analysis which follow th next points. a)
Identify the potential of Romanian Telecommunication market. b)
Identify and evaluate the barriers of successful development c)
Analyze the internal power of Lebara for expanding d) Find the
right marketing strategy for increasing of customers. Before we
start the entering of Lebara on the telecommunications market in
Romania we need to identify the factors and potential Romanian and
market segmentation. We will use the following tests: PESTEL,
Porter's Five Forces, Market Segmentation . By Beachmarking we
discover obstacles that may arise in future expansion Lebara and we
compare with competitors' strengths. As internal analysis we apply
Hamel Business Model. For internal analysis and external analysis
will include a SWOT analysis. As a result of the factors in
previous analyzes, strategic marketing options will be remodificate
and after we make the right choice marketing plan. These analyzes
will allow successfully entered the market in Romania.
14. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page14 1.3. Key areas of interest In the next
part I will define the main questions. The reason for showing the
most important questions is to help the reader to understand the
thesis and to have a structural image about the thesis. a) Market
What is the size and structure of Romanian Telecommunication
Market? Which kind of challenges could be shown in the process of
expansion? b) Competition Which is/are the main competitors in
Romanian Market? c) Customers Which is the buying behavior in
Romania ? d) International Marketing strategy Which is the right
International Marketing tools available? Which is the role of
Google Adwords for increase the subscribers? e) Price Which price
strategy would Lebara use for competitive and profitable business
against the competitors. The questions I have mentioned above are
important for the reader to understand the main thesis and also
important for Lebara to understand the future possibilities can
show when you want to enter in a new market. As a new entrant is
necessary to make a market research to explore the barriers and
market itself. The informations are the power and it can increase
the possibility of successful entry and can influence the future
strategic decision. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The strategy and the analysis of competitors for a developing
market is an important strategy. For a fast developing of market is
hard to have a competitive advantage which
15. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page15 can support for a long period of time. The
Romanian market has a medium size with three important competitors
with a close value of each other and almost the same number of
customers. The competition is considered to be big. Lebara needs to
choose with attention the tools of marketing because they Lebaras
offers need to be attractive for Romanian public. There need a
special attention for voice calls and internet connections because
that have an important signification for telecommunication field.
The field is growing and it can influence the competitive of
company and to maximize the profit. The business model will permit
us to have a clearly picture about the customers needs and
solutions for future. The main and base strategy or each company
and business is the customers. It means we have to find out their
needs. The society need to build up a way to innovation, product
and services developing. This is the key of success. The relation
with the public is very important and it needs to be a good
relationship which can show us their needs. After presenting the
potential of Romanian market and find out the principal
characteristics of Lebara business model and the investigation of
customers needs, the international marketing strategy will define
more closely the success entry. The last point of the main thesis
is about price. The prince is an instrument of communication with
the people about the quality of products or services. Sometimes the
customers prefer to pay more for having a good quality and longtime
of function than paying less but with poor quality and short term
of working. The main thesis keys areas of interest will be
presented during this thesis and the marketing plan will be
concluded as the conclusion says.
16. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page16 1.4. Scopes and Limitations The Lebara
group goals are to extend in all important markets around the world
and to increase the number of customers to 1 billion until 2020. It
means we need focus on different fields of telecommunication as
internet and mobile voice, because are profitable and the market is
growing. a) Analyses and evaluation of thesis on the telephone
sector and internet. Other media sectors will be excluded from this
thesis. b) The legal laws and aspects will be excluded. c)
Technological details won't be presented in the main thesis. d) The
marketing plan is going to be presented for duration of 2 limits e)
The thesis will contain a survey about the opinion of the main
sector of customers f) About the pricing , the thesis will have the
actual market price and the price strategy will be related on the
actual pricings and trends 1.5. Methodology For the methodology
part of the main thesis it will contain chosen models and
frameworks 1.5.1. Models and frameworks For a clear picture of the
situation we must to analyze the external environment because these
facts can destroy the strategic actions and the internal
environment can show what the company can do. . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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17. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page17 1.5.1.1. External analysis 1.5.1.1.1.
PESTEL analysis The external environment can be showed through
using PESTEL model. PESTEL model can show us the evaluation of all
principal external aspects of the industry and highlight the
barriers. The political facts can influence the right going way of
the company and the strategic plan. The economical environment
could be uncertain. About the social environment the environment is
more stable and can secure the good going way. Technologic facts
are changing fast and we need to have the same technologically step
and doing the change in the right moment. The company needs to have
innovation and to come with something new for attracting the
customers. Legal environment and fact insures the business
environment adding policies and society. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 1.5.1.1.2. Porters Five Forces The purpose
for using this model is more than an evaluation or competitive
analysis. Using Porter's Five Forces analysis is for show us if the
market is profitable. As a new entrant on a new market this is the
analysis we need to do for finding out the position and the power
of our next competitors. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . 1.5.1.1.3. Benchmarking Benchmarking analysis is the analyses
which can show which is the rivalry on the market. The analysis can
identify strategies which can bring the company for closer to its
goals already set. The analysis can measure the quality of rivals
policies, strategies, products, program, etc. Therefore the main
competitors will go through benchmarking analysis and it can
evaluate their strengths and weaknesses. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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.
18. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page18 1.5.1.2. Internal Analysis 1.5.1.2.1.
Business Model Analysis The customers are our goal. Making them
satisfied is the result of market strategy. This analysis will
apply preset the progress of value and this method will be able to
show what Lebara should improve and what should change. 1.5.1.2.2.
SWOT Analysis Swot is the analysis we have to do before entering in
a new market as new entrant. The analysis can show us which are our
best points and what should we keep up. Which are our weaknesses
and then we can find solutions for improve and solving them. The
opportunities will show which the opportunities in the market are
and what to keep working on. The threats about Lebara need to take
care in the competitive with it competitors and to be able to
identify a solution for a good market position. 1.5.1.2.3.
Marketing mix Marketing mix is the analysis called also the 7P's
because it contain Product, Place, Promotion, Price, People,
Physical appearance, Process. The analysis is the key of successful
marketing strategy and it's factors will give a translation about
what company products and how it delivers the services. In the
final of this analysis this tool will show the informations for
choose the right marketing strategy. 1.5.1.3. Data sources In my
thesis I will primary and secondary use which dates are going to be
attached in Bibliography / Data Sources at the end of the thesis. .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 1.5.1.3.1. Secondary
data Secondary data are data that have already been built and
collected by someone other than the researcher of thesis through
online sources. There are secondary data collected through the
Internet, they are collected for each part of the main important
paragraphs. At
19. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page19 the beginning of each part is used
theoretical data from secondary sources. . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . 1.5.1.3.2. Primary data Primary data are data
collected for the first time and are in the original form. Analyzes
were collected own personal interview with the director of the
company. They get an overview of information that later will be
projected on the company. 2. External Analysis 2.1. PESTLE ANALYSIS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . The PESTEL analysis
can help the reader to have a clear image about Romanian
Environments and can get easy information for each sector. The
final result of this analysis will have important role for forming
the strategy 2.1.1. Political environment Romania is an independent
parliamentary republic with executive, judicial and legislative
functions. The president of Romania is appointed chief by
government and president with the consent of parliament. The
Government of Romania is in the Capital: Bucharest. Romania is a
democratic country and since 2007 is member of European Union and
member of NATO since 2004. After 25 years after revolution Romania
still have problems about how to find itself identify uncertain
political situation and corruption. There were many presidents
which promised us a clean country and going to the right way
becoming a power in Europe. As it seems after many years we are in
the same place at the middle of Europe. During of Nicolae Ceausescu
period, Romania tried to find the stability and to find the liberty
after communism. According of the reputable Delcredere agency for
risk assessment, Romania was noticed to be as low political risk. I
have attached secondary data found on internet sources about the
financial liabilities.
20. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page20 As we can see the communist president
Nicolae Ceausescu had done a good job at Romanian govern. Romania
had in 1980 10446 million of dollars financial liabilities. After
10 years Romania reduced almost all financial liabilities and was
very almost to touch the null point. The last president of Romania,
Traian Basescu stayed 8 years in the top of govern. 2014 is the
year when the young people have mobilized and did the difference
for changing the system, political color and change the power to
the German Klaus Iohannis. We, the youngers, we believe in his
project and we support his mentality. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . After changed the president, even if nobody
thought before it can happen, the youngers mobilized and did the
difference for a good future. 17th of November in the morning all
newspapers from around the world said about Klaus Iohanniss victory
as ''the guardian '' publication said
(http://www.theguardian.com/world/2014/nov/16/romania-klaus-iohannis-president)
21. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page21 The day after, the new president of
Romania, Klaus Iohannis deleted the law of pardons for
parliamentarians (MPs). That law means that parliamentarians (MPs)
cannot be prosecuted for different buckles or other corruption
happens. More than 37 parliamentarians were to prison and they have
already received the sentence of final execution. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . The taxes are going to go down from
24% to 19%. As it sees there started a clean and the political
environment is going to the right way after many years of political
decline. 2.1.2. Economic Environment Driven by joining the EU,
Romania has experienced strong economic growth and stable. The
country has managed to overcome economic tensions walls in the
second part of 2007 and first quarter of 2008 registered a growth
rate of GDP. The economy advanced 8.2% from 21 billion euro to 24.5
billion euro. According to Lucian Anghel, the economist manager of
Commercial Romanian Bank (BCR), unexpected GDP growth is the result
of a base effect of strong growth. Ion Ghizdeanu, chair of the
national financial forecast showed that because of the outstanding
economic growth figure for the full year 2008 pub could be higher
than previous estimates. The sectors with the largest contribution
to GDP are: industry (36.7%), services (37.7) and agriculture (8.6)
Total GDP was estimated in 2007 to 159,519 Billion Euro. According
to the International Monetary Fund (IMF), GDP per capita can reach
7868 euro for 2008 which represents approximately 37 & of the
euro area. The current rise in inflation is primarily a consequence
of shocks in food and energy provided registration in Romania in
2007.
22. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page22 In 2007 Romania faced a drought, a drought
that destroyed a third of the agricultural products. Following the
inflation rate which growth to 3.7% in May 2007 until April 2008.
During the macroeconomic outlook is probably to remain stable,
further contraction of fiscal policy could be needed to keep
inflation within the target range at the end of 2009. Inflows have
decided on the rise in domestic spending. Although current account
deficits are normal in fell into the economy goes through,
Romania's GDP is above what would be considered a normal level and
raises concerns over the medium to long term sustainability In case
of recession glib markets, foreign investors may suddenly shoot
investments in Romania and can cause economic collapse country.
After growing by more than 3 % in 2007, the current account deficit
reached 14% of GDP. Due to higher growth of exports compared to
imports in the first quarter 2008, the budget looks to be
stabilizing. As we can see in the next picture below, there is the
evolution of Romanian GDP in euros. GDP, which is growing year by
year. In 2008 Romanian has entered in recession and Romanian GDP
decreased with 3.4% and after Romania found the recovery situation
and GDP is still growing. . . . . . . . . . . . . . . . . . . . . .
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23. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page23 The evolution of GDP and volume indices.
As it looks after 25 years after revolution we can see that the
services sector is growing and have an important role in Romanian
economy. The Romania telecommunication industry has always played a
important role in Romanian economy. The economy of Romania in case
of Telecommunication seems promising. This is a good developed and
had future in Romania. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . 2.1.3. Social Environment Romania's population experienced a
slight decrease in recent years. In 2011 Romania's population was
20,150,000 people. Next year Romania's population decreased by
0.35%.In 2013 Romania's population continued to decline reaching
19.96 million people from 20.08 million as it was in 2012. The year
has been a population decline of 0.6%. The composition is dominated
by ethnic Romanians in Romania. The second largest group is
Hungarians which represents 7% of the population and the rest are
Roma, Germans, Ukrainians, etc. Romanian language is Romanian.
Romania is the only country in Eastern Europe that has a Latin
language. Hungarian and German languages are also spread in
Romania. Almost 87% of the population belongs to the Orthodox
Christian Church. The Hungarian minority are followers of the Roman
Catholic Church. The 3rd groups of Romania representing 5% of the
population are followers of Protestant churches (Baptists,
Pentecostals). Only 1% are Muslim and other religions. . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . .
24. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page24 2.1.4. Technological environment Recent
statistics show that 57% of Romanians have basic computer skills
and 63.5% of urban residents in Romania own a computer. However
national number drops to 44.6%. Computers are not very popular in
the workplace, only 9.8%. According to BMI, Romania will continue
to be the leader in IT markets in Eastern of Europe. . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . In 2012 the total domestic IT
spending and services amounted to 3.3 billion euros forecast that
the number will increase to 5 billion in 2014. Romania has Internet
coverage of approximately 77% which represents a middle position in
the ranking of countries in Europe. In terms of wireless access
through mobile networks, Romania managed to recover in Europe.
Research and development in close liaison with the economic growth.
The system is currently recovering after years of decline. The
government is increasing with a steady pace of public spending 1%
of GDP achieved in 2010. The ultimate goal is to fulfill the Lisbon
critters 3%. Therefore the estimate for 2015 is that research and
development expenses will be approximately 2.5%. After the
technological environment analysis, the Romanian telecommunication
market looks to be a good market for Lebara where can grow the
company itself. Romanian market is still growing and this is a good
moment for entering into the market. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . .
25. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page25 2.1.5. Environmental Factors The
environmental problems affect all business areas. Even there is a
stronger pressure around the companies from the European Union
side. The Social responsibilities are inevitable parts for all
internationals companies. The goal of responsibility is to maintain
the balance between economy and ecosystem. In the last couple of
years, the telecommunication sector provides personal and financial
support for environmental protection. The sector of telephony is
the sector which can contribute for environment protection and
nationality economy. 2.1.6. Legal Environment CNA is the sector of
National Media and Info-communications Authority in Romania. This
Authority is in Romania since 2004 and it is the only organization
responsible for this telecommunication sector. Here are many laws
about humanity laws and the controller of this is CNA. 2.1.7.
Conclusion As the analysis explains and looks, Romanian market is a
good place for Lebara and development in Telecommunication sector.
The environments show us that are: a) Good political environment
which is going in the right way. b) Stability of economic
environment and hopes that is going better. c) Well development and
space for still improvement. d) Control about environmental facts
e) Control of the people laws and correct company competitions. f)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . g) h) . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . i) . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . .
26. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page26 2.2. Marketing Segmentation The market
segmentation defines the right segment which is supposed to be
profitable for Lebara. The segment for Lebara will be described
through analyzing some types of businesses, the profitability and
the number of employees on the Romanian Market. 2.2.1. Types of
business There are few categories of business in Romania: a) Less
than 10 employees are micro-enterprises b) Between 10-49 employees
are small companies c) Between 50-249 employees are
medium-enterprises d) More than 250 employees are large companies
As the chart shows for the proportion of employees for 2013 is 81%,
and the next year the proportion is going down, is decreasing with
2 % in 2014. Furthermore they have produced almost 70 % which is
very good and as we can see they are trying to keep it up and in
2014 we had 63% gross value added. The profit has also a good
percentage which touched in 2013 the point of 71% and has also a
easy decline in 2014 of 3% profit because of less percentage of
Export than in 2013. 0 10 20 30 40 50 60 70 80 90 Proportion of
Employees Gross Value Added Profit Export 2013 2014
27. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page27 Large Companies On the Romanian market we
can meet only 1% large companies which mean that the developing
environment is not very well developed. However the companies have
an important role in Romanian market and they play a significant
role in Romanian Economy which is also better for Lebara because
the company can collaborate with them. Number of employees As the
table shows as we can find here the number of employees between
2010 and 2014 and here Romania can say that they are doing good job
for creating job pleases for people. As well the table shows the
primary data of employees and the secondary data which mean the
people are starting from the bottom and they are trying to go up to
big companies. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2.2. Conclusion After I have analyzed th market segment I can
conclude that the economy of Romanian market is going to better
because they are creating spaces of work for people, they have
export which means profit and that also means they produce and
sell. There is a balance between the percentage of micro companies
and big companies. This is a perfect factor for Lebara to enter
into the Romanian market because there are competitions on
different levels and fields. . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . 1 2-9 10-49(Small)
50-249(Medium) 250(Large) 2013 Primary data 17.2% 21.5% 19% 16.8%
25.7% 2014 Preliminary data 16.8% 22.2% 18.8% 16.3% 25.9% Number of
employees for the last five years 2010-2014 4,3 2010 4,6 2011 5
2012 5.1 2013 5.3 2014
28. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page28 2.3. Porter Five Forces Forces which drive
the competition on the telecommunication services market in
Romania,2014 . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The
low level of differentiation of services makes the rivalry with
players to be more intensive measure of quality, functionality,
brand awareness, and value pricing. Telecommunications market
consists of the fixed line telecommunications market and wireless
telecommunications services market. Market continues to present
marks from the past with the bigger competitor which provider
Romtelecom held a strong position in the Romanian market although
there are other major international actors present on the Romanian
market.
29. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page29 A Fixed Telecommunication Company may hold
and manage its own physical network (exchanges, fiber optic cables,
etc.) newcomers in the fixed telephony segment could be put off by
the penetration of mobile declining landline and popularity growing
wireless technologies. A fixed telecommunication company can own
and manage your own network of physics and become the main
substitute the telecommunications services market. It is based on
internet although in many cases, these services are available only
from landline or wireless operators, which increases user
dependence on telecommunications. Most major wireless providers
Telecommunication are 'based on facilities'', owning and exploiting
network infrastructure and equipment, pillars, installations and
bases. A major factor in the growth of wireless services is
consistent international demand for communication. This pressure
leading mobile telecommunications companies and the development of
new methods effectuate on certain frequencies. The industry is
highly regulated by the government. 2.3.1. Buyer power The Romanian
telecomm unications market shows
30. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page30 signs of classic oligopolistic behavior,
the small number of large players and a high number of subscribers
(both individual / commercial). This weakens the buyer power loss
of a single customer will not have great impact on market players.
The Inelastic environment of demand and the shift to multi-play
services should ensure the market as a whole against any major
recessions, weakening purchasing power. A low level of product
differentiation is a strategy that the company is trying to attract
new customers in the telecommunications market and to keep them.
However for purchasing power strengthened, services must be
provided in an inherently. When a consumer has an unfortunate
accident studies show that this story is shared by at least another
10 clients, but this story is happy if it reaches only 3-4 clients.
Transfer costs vary and include the difficulty of leaving a
long-term service contract costs and unblocking a SIM card blocked.
In general buying power is rated as moderate. 2.3.2. Supplier power
Many governments considered telecoms a natural monopoly and placed
single state owned enterprises to act in the market - although, in
Romania's case the monopoly was
31. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page31 held by Romtelecom, which was only part
owned by the state, with the majority of shares being held by OTE
Group. However, the market has been subject to deregulation
initiatives and, although the former monopolistic provider retains
much of its infrastructure, other large multinational players are
now present in the Romanian market. Such large companies often own
and operate their own physical network. These market players are
referred to as asset-based carriers (ABC), and their suppliers are
usually large companies, granting them an extremely strong position
within the market. There are a limited number of such suppliers who
provide reliable and extensive networks. Alternatively, a virtual
network operator (VNO) may offer telecoms services by purchasing
access to an ABC's infrastructure. Lycamobile recently launched one
such venture in Romania. Switching costs with this market are often
high, as exiting long term supply contracts can be difficult. This
is mitigated to some degree by the fact that specialized suppliers
are dependent on the income from the telecoms industry. National
governments and regulatory bodies, such as the National Authority
for Management and Regulation in Communications (ANCOM), are also
important in this market, as they act as the gatekeepers to the
electromagnetic spectrum and bandwidth supply. Licenses are
allocated either through periodic auctions or 'beauty contests'
(competitions on the basis of service provision, etc.). This is not
simply a regulatory issue: bandwidth is allocated in periodic
auctions, and the amounts paid by successful bidders can be
substantial. Supplier power is assessed as strong overall. . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .
32. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page32 2.3.3. New Entrants Lebara as a new
entrant in the telecommunications services market as a supplier on
the basis of significant capital expenditure facility needed to
build infrastructure that covers much of the country's geographical
area of interest. Refund companies presenting business models such
large-scale operations benefit from economies of scale,
diversification and the attack can be difficult to compete because
they can provide lower prices. Lebara as a low-cost entrant is
required to work to get a MVNO (mobile virtual network operator).
MVNO relies on access to a network built up infrastructure more
cost effective which may be an acquisition of a company that
already has a network in place, especially in countries that have
large geographic areas and underdeveloped network infrastructure
Lebara a newcomer can also obtain and install the necessary
infrastructure in place systems for billing and operational
support, which is another cost group.
33. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page33 As a small number of strong competitors on
a medium market, Lebara demand conditions require a company to
enter the large size can provide input prices will result in
economic loss early entry to attract consumers Romanian market.
Governments significantly influence the height of barriers by
establishing rules and regulations concerning access to
distribution channels, infrastructure, and phone networks. In
Romania, ANCOM is responsible for promote, consumer protection and
competition on the telecommunications market. The regulatory
authority such as this can make life more difficult for new
entrants by imposing service standards that must be met to market
entry. Their role is to ensure a healthy level of competition in
the market. This can have the opposite effect against monopolistic
tendencies of big players in the market. In general, the threat of
new entrants is rated poorly. 2.3.4. Threat of substitutes The main
replacement on telecommunications services market is Internet
communication. Messaging services, email, social networking sites
and business programs aiding speed Internet (skype or messenger)
offers cheaper alternatives than the traditional phone
34. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page34 communication. These are the most
important threats that can meet Lebara replacement market in
Romania. Many of these options are free requiring only an Internet
connection and a computer properly. However, the quality of voice
through the Internet can BE surreal and often depends on the speed
of Internet connection and computer specifications used by the
user. In many died, these services are available only from fixed
line or wireless operators that enhance the utility addiction
telecommunications company. Many competitors have a wide range of
products and services, including the installation of Internet
connections through television subscription. Therefore competitors
on the telecommunications market in Romania found substitute and
pathways through which decreases their threat. In general, the
threat of replacement is rated weak and is a good market for Lebara
development. 2.3.5. Degree of rivalry Rivalry in the
telecommunications market and services is enhanced by the presence
of major players like Telekom, Orange and Vodafone which benefit
from economies of
35. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page35 scale and diversification. The low level
of differentiation of services makes the rivalry will be intense
through quality measures, functioning, brand awareness and pricing.
Data services have become a key component for both landline and
wireless service providers in appearance and $ G #G services which
meant that the size and price data packages offered have become a
key means of differentiation. Competition could increase but should
be able to get new companies in the market, for example Lebara.
Convergence between telecommunications, media, technology and
consumer electronics causes lethal competition, as competition
spreads converging markets offer the possibility of increases. At
the same time competitive threats widen market. Romanian market
decline has also worked to increase rivalry. Rivalry in the
telecommunications services market is generally moderate. Lebara
place could go to have a good, professional and fair competition.
2.3.6. Conclusion After did the analyses for the Romanian
telecommunication market can be concluded as good marketing for
expanding and developing of Lebaras products. a) In general buying
power is rated as moderate. b) Supplier power is assessed as strong
overall. c) In general, the threat of new entrants is rated poorly
d) In general, the threat of replacement is rated weak and is a
good market for Lebara development. e) Rivalry in the
telecommunications services market is generally moderate. Lebara
place could go to have a good, professional and fair
competition.
36. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page36 2.4. Benchmarking analysis Benchmarking
analysis is analysis that shows information about the company's
market position given and comparing with its competitor. By this
analysis the company can understand where the exact it is and
discover areas where it can be improvised. Comparing competitors in
the same field we identify if they have similar problems, examining
whether they have already done and what works for. Analysis
classify the company's position in the market if company is in the
top or the bottom of market. To use this tool for a possible Lebara
market will be defined and the areas to be improvised. The sources
for Benchmarking analysis are part of primary data and those are
collected from webpage of Lebara and Lebaras competitors (Orange,
Vodafone and Telekom). The reason for doing this analysis is to
find information as financial information which are not posted or
published by the companies. 2.4.1. Basic informations Orange SA
Vodafone Group Telekom Lebara Group Origin of the Company coming
from France England Germany Services offering Phone line and
internet Phone line and internet Phone line, internet and TV cable
Phone line and internet Subscription Yes Yes Yes Yes 2.4.2. Orange
SA Orange SA is a French telecommunication company known under the
name "France Telecom. The company is a telecommunications operator,
providing fixed telephony, wireless telephony and data
transmission. Orange SA (Dialog) came in Romania with the name
Dialog in 1997 and was one of the first foreign telecommunication
companies in Romania after revolution.
37. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page37 The Orange group carries out business
operations with subsidiaries of Orange brand. Orange has the main
market around Europe, Middle East and Africa. Year Capital (RON)
Turnover (RON) Net profit (RON) Number of employees 2010 93.596.733
4.161.195.667 933.958.477 2.708 2011 93.596.733 3.981.959.733
805.637.899 2.757 2012 93.596.733 4.119.424.689 517.785.638 2.798
2013 93.596.733 4.337.177.113 500.809.864 2.855 Financial
Indicators keys for Orange Romania 4,5 RON = 1 EUR Vodafone group
Vodafone come in Romania with other brand called Connex in 1996 and
was one of the first foreign telecommunication companies in Romania
after revolution. Vodafone bought Connex actions in 2005 and became
the 1st bigger rival for Orange. Vodafone Romania is a subsidiary
of Vodafone Group Plc., One of the largest mobile telecommunication
groups in the world with approximately 438 million customers on 30
September 2014. Vodafone currently has equity interests in 30
countries across five continents and over 50 partner networks
worldwide. Financial keys for Vodafone Romania for 2014-2015
Vodafone Romania registereda total of 8,507,439 customers *, of
which 7,914,267 users of mobile services, representing a decrease
of 60,313 compared to the previous quarter. Vodafone Romania
reached 6.2 Euro in the last three months, equivalent to an
increase of 4.7% from the previous quarter. Service revenues
decreased by 5.3% on an organic basis compared to the same quarter
of the previous year as a result of a significant reduction of
termination rates by 69%,
38. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page38 effective from 1 April 2014. Excluding the
impact of falling tariffs termination, Vodafone Romania service
revenue increased 8% over the same period last year, based on
organic. On 30 September 2014 Vodafone subscribers represented
42.2% of the customer base and prepaid Vodafone, 57.8%. Users
postpaid services increased by 0.6 percentage points from quarter
to quarter and 1.9 percentage points from one year to another.
Mobile data consumption increased by 63% in the quarter ended Sept.
30, compared with the same period last year. Telekom Romania
Romania Telekom Group, made up of former Cosmote and Romtelecom
companies, last year had a "positive trend" and the first results
after rebranding in September are "encouraging", Cosmote and
Romtelecom in Romania are telecom companies which are controlledby
Deutsche Telekom through the Greek group OTE. It could merge by
2015 to generate a higher return on invested capital Romanian State
agreed in mid of the year that OTE and Deutsche Telekom with the
steps made for a possible merger with Cosmote and Romtelecom, but
froze amid the political changes in Romania. However, the two
companies, with annual revenues of over 1.1 billion euro and over
11 million subscribers. Revenues for the end of 2014 remained at
the same level of 609.1 million euros compared with the end of
2013. The launch of converged after rebranding generated revenue
growth of the mobile segment in Q4 2014 compared to Q4 2013. "The
sale of integrated packages exceeded expectations by 52%. . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . .
39. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page39 3. Internal Analysis After did the
analysis about external environments, the company needs to see if
it has the necessary resources for expanding into a new market and
to analyze the possible position which the company can have on the
Romanian telecommunication market. The business model can describe
how a company or organization can find the value in creating and
delivering the products or services. Even if the market has a big
competition and Lebara need to be aware about the value of
competitors and what they are creating. The company needs to focus
on customer needs and to create satisfaction. Therefore the
business model will be presented by Hamel Business model and it
will help to understand if the Lebara Business model is fixing on
Romanian telecommunication market and if Lebara can do the
expansion.
40. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page40 3.1. SWOT Analysis The SWOT Analysis is a
marketing tool which helps the company to monitoring the internal
and external facts and environments. The SWOT Analysis will show
which the Strengths are and which are the Weaknesses of Lebara
Group, also it shows which the opportunities are on Romanian
Telecommunication Market; as well it shows the Threats and Lebaras
barriers. Strengths Strong portfolio Global brand strategy
Geographic and sectoral diversity Market leading position Brand
developed and marketing Network infrastructure Superior customer
services Premium services Flexibility Innovation Weaknesses
Fragmentary sectoral involvement Research and development of new
mobile technologies Increasing 3G and 4G Coverage Lack of major
patent Competitive price Opportunities No presence in Latin America
and other markets Presence in dynamic product sectors Widening
customers base Demand for mass-market product Potential for
developing markets Building on brand equity Threats Intensifying
competition Industry consolidation Private label products
Stagnation in Africa region Negative publicity Extremely high
penetration rates in key European markets
41. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page41 3.1.1. Strengths As the table shows after
collected the strong points/strengths, Lebara is an international
company with more than 10 years experience which touched and
developed many important markets from Europe, Africa, and Middle of
Orient. The table of strengths shows that Lebara has competitive
services and productions with high quality tested products. These
facts can increase the successful in markets and make the business
profitable. The strong portfolio can define Lebara as being a big
company and strong competitor for other companies from different
markets. It means Lebara has a global brand and strategy. The
company has geographic and sectoral diversity which mean that the
company deliveries various services for different areas. The
company provides premium services to its customers and superior
customer services. Network infrastructure is one of the most strong
points of Lebara because the company can offers telephony line and
services but also the company offers internet and premium accounts
which are flexibly. Innovation is the point where Lebara is still
improving, it is developed but they are still working for it to do
better and to satisfy the customer needs. Lebara has a very
developed brand and marketing. 3.1.2. Weaknesses The weaknesses
contain those factors which the company Lebara needs to work for it
and to try to improve it. As the table shows about Lebara
weaknesses there is an interesting thing about Research and
development of new mobile technologies, which means that Lebara is
working for improving its products and services because they are
not the best in their market and the company still needs to work
for improving, for coming with new technologies and ideas about
future because the technology is growing day by day and Lebara
needs to keep its customers up with all changes. As well the
company (Lebara) needs to come with new ideas, applications and
offers for keeping the customers satisficed and for trying to large
the base of customers.
42. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page42 Other weaknesses are about increasing 3G
and 4G coverage. First, what are 3G and 4G? The internet meets a
very fast growing of development in the last couple of years.
Diverse companies are trying to improve the quality of services and
products. 3G and 4G are something new on the internet market
because those come few years ago around 2010 and Romania was the
leader of Europe at this connection which exactly means quality of
the Internet and very fast reaction of internet (The speed of
internet). For having this connection 3G and 4G the companies need
to invest money in infrastructure because this new technology ask
antennas for covering areas. Here many companies need to work for
covering and developing this technology. The competitive price is
also a weakness but is a reparable one. Here depends about the
market of activating because the markets ask if the company needs
to decrease or increase the prince and as well the competitors are
in the calculations of pricing strategy. 3.1.3. Opportunities The
opportunities section is about what could Lebara do for better and
describe potential future plans. As the analysis shows there are
many opportunities for Lebara. Because Lebara is a big
international company, it has the opportunity has the potential to
enter in any other markets because it is already in the main
markets in Europe. For example one of the opportunities for company
is to join in the main market of American continent because the
company has no development on American markets. Because Lebara has
a large group of customers it still can be improved and lagged and
this could be called a strategy point not really an opportunity.
The brand equity is a domain where Lebara need to improve and has
the possibility to develop it around the markets. Lebara has a big
potential because its vision is to create a world, is to create
communication for and between migrants. And as we all can see the
people are migrants because they are moving every day from country
to country and this is the segment where Lebara is trying to
develop and extend. Thats why the goal of the company for the
future, exactly for 2020 is to grow the base customers to 1 billion
around the world. Lebara is a strong company and it can every day
discover new opportunities.
43. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page43 3.1.4. Threats Threats section is part of
SWOT analysis and it need to show which the threats are for the
analyzed company. As the last table shows there are enumerate the
principal threats of Lebara after analyzing it. Intensification of
competitors is happen because the company is acting in many
important markets and the rivalry is growing from each to each
market. Fox example Orange from Romania is part of French Telecom
and French Telecom is already Lebaras competitor on French
telecommunication market and also in Belgium. The German company
Telekom is Lebaras associate on Netherlands market but if Lebara is
going to Romanian or Hungarian market, Telekom will became Lebaras
competitor. As it looks now Lebara has many competitors around the
world because of activating on many markets. The stagnation from
Africa is because of the bad financial situation at the moment and
in Africa is also a problem with the population and they have
demographic problems. It can become weaknesses if the situations
will decrease. For entering on new market as Romanian
telecommunication market, the will appear one more Threat which is
not about competitors is about the state. The Romanian state has
different taxes than other countries and this fact can became a
threat for the budged and financial segment of Lebara. On the
Romanian market Lebara will meet the main competitors (Orange SA,
Vodafone and Telekom) who have a competition strategy and power to
fight for each customer. 3.1.5. Conclusion After analyzing the
facts of SWOT analysis it can conclude that the company (Lebara)
has the sufficient funds and internal resources for entering into
new market as Romanian. The weaknesses can be improved in time,
step by step and it can become strengths in the future. The
opportunities need to receive the change of developing and taking
care about them, because those facts can became from opportunity
and weakness or strength. As conclusion Lebara has the necessary
intern and extern needs for expanding.
44. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page44 3.2. TOWS Matrix After the SWOT analysis
the Tows analysis will show which internal strengths and weaknesses
of the company and the external opportunities and threats faced by
it. Internal elements --------------------- External elements
Strengths S1 Strong portfolio S2 Geographic and sectoral diversity
S3 Flexibility Weaknesses W1 Increasing 3G and 4G coverage W2
Competitive price Opportunities S1 + Potential for developing
markets (O1) S2 + Potential for developing markets(O1) W1 +
Widening customers base (T1) Threats S3 + Stagnation in Africa
region (O2) W2 + Intensify competition (T2) 3.3. BCG Matrix
Analyzing the method of BCG Matrix analysis the table will show
which the possibly market share are and the growth rate expects
Lebara as new entrant. Low market growth Question mark Lebaras
position watching as new entrant The expectation of growth rate
Promises Stars Keep the position and constant investments,
development are necessary. Dogs Low innovation Low market shares
Cash cow High market shares Growing customers base Growing
cash-flow High market growth Low market share High Market
share
45. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page45 As new entrant the Lebara position will be
watched as new entrant and this will make a question mark. The
market share is going to be low and the growth rate is expected by
company to be as well low. 3.4. Ansoff Matrix In conclusion the
possibility of Lebara for expanding and developing into the
Romanian telecommunication market is showed by Ansoff matrix After
analyzing the internal and external environments and concluding the
important facts the market seems to be attractive for Lebara and
the company can take it like an option for new profits and a new
market.
46. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page46 4. International Marketing Strategy 4.1.
Lebaras goals and objectives The new objective of Lebara for
entering into the Romanian market would be to have a constant
development and position. The focus public would be the student and
students between 16-24 yeas. After shared a survey in three main
important cities from different parts of Romania the statistics
look like: 4.2. Evaluation of survey As the pie chart shows the
predominant age between 16-24 years old which mean the young people
are predominant (76.5%). As the pie chart shows the predominant sex
between (Male and female) are female with 108 surveys which means
66.7% After the behind chart shows, the result confirms that the
most important company on the Romanian telecommunication market is
Orange and it has a large base of customers.
47. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page47 As we can see the two charts behind there
are two questions: How much do you spend monthly for internet and
telephone? and How happy are you about your monthly costs The
report between prince and satisfaction of customers. As the first
chart look there are 107 people who are paying under 50 RON monthly
(13 Eur) but as the surveys look (all surveys are in appendix).
Even if their cost are under 13 Euro which is the lower offer for
internet and telephony services, the people from Romanian are no
happy about the services (internet, telephony line).
48. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page48 4.3. Marketing Mix Marketing mix analysis
means 7Ps which can help the company to find out the current
marketing strategy of Lebara. The analysis 7Ps will be applied for
having a clear picture of marketing tools and for achieving the
goal to large the base customers. 4.3.1. Product The main product
of Lebara is to delivery phone line services, customers service and
internet. The services are able in over 30 countries. For having
the service customer needs to pay a fee and it is at customer hand
(the customer can choose the value of services and options). 4.3.2.
Place The place for Lebara services are on telecommunication
markets to get in touch directly with customers and webpages.
Lebara offers service in other 30 countries and the services are in
their own language. 4.3.3. Promotion The company offers free SIM
Card for people. This is a promotion for testing the services. The
advertising of production is and there are high investments for and
these are the ways for customers. It uses e-mail and telemarketing
ways for contacting the customers and shows the offers. Google and
Facebook are one of those advertising companies. Google
advertisements are also used for increasing the chance that a
people will see the offers. 4.3.4. Price For Romania the market
prices are low because of customers. In the same case the customers
are willing to pay as they expect a good quality of services. As
the picture below show the Romanian telecommunication market cost
are around 2, 2 euros per minute. One of the low markets in Europe.
The average cost per minute in Europe is 9, 1 Euros/minute.
49. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page49 4.3.5. People The main people into the
firm are Ratheesan Yoganathan, Rasiah Ranjith Leon and Baskaran
Kandiah which have used their personal skills and ideas to improve
Lebara and to create an international brand. The company shows
better after 10 years because the founders improved their
self-skills and come on the market with something new. The plan
company for intern structure is to get the smartest students and to
offer trainings for developing and for having them for a long term.
4.3.6. Physical appearance Lebara has a physical appearance for the
customers because of Lebara Brand. The name is perfect for a
telephony and internet telecommunication. The color of logos is
similar like you think about Internet. When you say internet the
first color in the mind is blue. This is Lebaras color. The website
is easy to use even if you dont understand the language; its very
easy to use and to change it. 4.3.7. Process The Lebaras companies
are very well defined with a clean structure and new
objectives.
50. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page50 4.4. Advertisement Many companies have
recognized as for having well development and the satisfaction of
customers is not enough for growing the business. Marketing is
important for many companies because it help the company to promote
the services on the market. If the market strategy does not exist
and the promotion is not at the right high level, the people will
not know about the products and services. This is the main reason
why marketing is the key for each company. Marketing like
instruments of promotion is beneficially but the advertising costs.
The company can use the main instrument of advertising which is on
internet market. Adwords is one of the company which provides
services in promoting and advertising companies by recognizing
specific companies words and put the as the first option. Social
media is as well an instrument for advertising because sites as
Facebook and Twitter which can me the company webpage, adverts
which appear in the top of people news section. 4.4.1. Adwords
Today, the internet is the key for finding information and the
statistics about people and spending time on internet is growing
year by year. The principal motor for searching information is
Google which provides the service Google Adwords. This instrument
plays an important game in strategy forming. Google Adwords has
three types of advertising programs. CPC - Cost per - click ads
Google AdWords effectiveness and efficiency comes from the
following facts. The advertise company analysis keywords that most
people are looking for in search for their products. Keywords can
be part of the description of claim, part of the description of the
company, geographies etc. It will cost the company for each click
the customer access from Google Adword.
51. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page51 CPC - Cost-per - click bidding CPC ads are
year auction system. Google Adword offer auction services to
maximize the offer and to see how the company is willing to pay for
each click. Whatever effect the advertising company will not be
charged more than your maximum CPC bid established ago. 5. Price
strategy The price strategy will show which the prices on the
Romanian telecommunication market are and how can Lebara entry in
with success. The table belong shows that the Romanian prices for
telephony services and internet are at the same level of Denmark
Market Operator Tariffs in Romanian market Telephony & other
services Tariffs in other market Orange SA 44Ron (10 Eur) 70Ron
(15Eur) 10 Pounds (13Eur) -UK 15 Pounds (21 Eur) -UK Vodafone Group
45 Ron (10.3Eur) 80 Ron ( 19Eur) 10 Pounds (13 Eur)-UK 19 Pounds
(25 Eur) -UK Telekom 51 Ron (12Eur) 90 Ron (21Eur) 15 Eur -Germany
20 Eur - Germany Lebara - - 50 DKK(8 Eur)- Denmark 149 DKK(23 Eur)
Denmark After analyzing the price strategy the company needs to
choose the right price with carefully attention because as entrant
it can attract the customers. The company needs to get from
customers them sympathy because Romania is a country with many
migrants
52. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page52 and it can be the strong point for Lebara.
The price needs to meet customer needs and to provide services to
satisfy the customers and to become a power in Romanian market. The
company needs to provide services for Romanians over borders and to
create communications between the people from Romania and migrants.
This is the mission of Lebara as they started at the
beginning.
53. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page53 6. Conclusion and recommendations First I
would start to say the opinion about Lebara. Lebara is an
international company which I have used during of the last 2 years
studying in Denmark and during of my exchange program in England.
The company has the necessary power and experience to entering into
the Romanian telecommunication market because for sure Lebara met
in the past the same problems which will meet on the Romanian
market. It means great competitors with strong strategies and
strengths. Vodafone, Telekom and Orange are also competitors of
Lebara on other market but also partners for others. Lebara
services are well developed and the company can face the new
possible market. One of the characteristic of Lebara is to find the
right offers and price for services which means as well telephony
line and internet. After analyzing the PESTEL analysis the company
found out that the market target is good place for development and
extending in Telecommunication sector because of good political
environment which is going to the right way, stability of economic
environment and hopes that is going better, the company still have
space to develop and improve the services in the market, control
about environmental facts and the last main point is control of
people laws and correct company competitions. Market segmentation
has showed the proportion of employment which is keeping up year by
year, low decreasing of gross value added because of low export in
the actually year. Also after shared the surveys the company meet
the customers problems and which are the market segmentation and
where can Lebara focus on. Porter five forces have showed the
forces which are and can appear on the Romanian telecommunication
market. After analyzing the Porter Five Forces analysis the facts
are like; buyer power is rated as moderate, supplier power is
assessed as strong overall, the threat of new entrants is rated
poorly, with threat of replacement is weak and is good
54. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page54 market for Lebara development. The rivalry
in the telecommunication services market is generally moderate. The
external analysis can help the company to find the problems and
barriers can appear in the new market and environments. As entrant
the company needs to know and to try to avoid many of these
barriers. Now its time to conclude the internal environment and
SWOT analysis can define the in the best way the strong points of
the company, well defined weaknesses. Also the SWOT analysis shows
which are the opportunities can do and improve the company in the
future and in the end, threats or barriers. The survey analyzed
helps the company to find the segments for focus the strategy. My
recommendation for Lebara is create offers for youth because they
can share the connection fast and they receive the technology more
easy the old people. The young people are more open for discussion
and using the internet 3G and 4G. In the end I would recommend
Lebara to entry into the Romanian telecommunication market because
is a market which is still growing and extending. As the statistics
showed , the number of customers are growing fast because internet
and telecommunication are new I Romania.
55. Marketing plan of Lebara Group for entering into Romanian
Telecommunication Page55 7. Sources 7