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Abstract:
The case examines the challenges marketers encounter when identifying potential market segments, and the subsequent development of marketing strategies with which to serve selected market segments. In the Safaricom case the problem is compounded because, firstly, the managers are all new to the environment and secondly, the significant market indicators point to dismal market potential for mobile phones. Kenya's telecommunications infrastructure and situation before October 2000 shows a struggling industry that was dominated by a public monopoly, Telkom Kenya. Michael Joseph, the new Chief Executive Officer (CEO) of the newly privatised Safaricom and his management team are confronted with strategic and operational decisions needed to prepare the company to make a debut in Kenya's mobile telephone market. What business and marketing strategy decisions would enable Safaricom to achieve superior customer value and rapid market acceptance? The CEO and his team must make decisions on: (1) the target market; (2) the market coverage; (3) the payment option; (4) the type of customer service; and (5) the types of phones to be offered etc, in order for Safaricom to successfully enter a market in which the only other mobile competitor had captured a significant market share soon after launch.
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