1. 1. Marketing plan of Lebara Group for entering into Romanian Telecommunication Page1 INTERNATIONAL BUSINESS ACADEMY MAIN THESIS ANDREI-LIVIU GRIGORICIUC 2015
2. 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. 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. 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. 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.
6. 6. Marketing plan of Lebara Group for entering into Romanian Telecommunication Page6 Table of content Table of contents 1. Introduction 1.1. Company description and history . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 1.1.1. Current situation overview of the Romanian Telecommunication Market . . . . . . . . . . . . . . . . . . . .9 1.1.2. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 1.2. Problem proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1.3. Key areas of interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 1.4. Scopes and limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 1.5. Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 1.5.1. Models and frameworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 1.5.1.1. External Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 1.5.1.1.1. PESTLE Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 1.5.1.1.2. Porters Five Forces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 1.5.1.1.3. Benchmarking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 1.5.1.2. Internal Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 1.5.1.2.1. Business Model Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 18 1.5.1.2.2. SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 1.5.1.2.3. Marketing mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 1.5.1.3. Data sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 1.5.1.3.1. Secondary Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 1.5.1.3.2. Primary Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .19 2. External Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 2.1. PESTLE Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . .19 2.1.1. Political Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2.1.2. Economic Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 2.1.3. Social Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 2.1.4. Technological Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 2.1.5. Environmental Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 2.1.6. Legal Environmental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 2.1.7. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 2.2. Marketing Segmentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .26 2.2.1. Description, framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26 2.2.2. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 2.3. Porters Five Forces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28 2.3.1. Buyer power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 2.3.2. Supplier power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 2.3.3. New entrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 2.3.4. Threat of Substitutes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .33 2.3.5. Degree of rivalry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 2.3.6. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 2.4. Benchmarking Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 2.4.1. Basic informations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 2.4.2. Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..37 3. Internal Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 3.1. SWOT Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40 3.1.1. Strengths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 3.1.2. Weaknesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 3.1.3. Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 3.1.4. Threats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 3.1.5. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .43 3.2. TOWS Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
7. 7. Marketing plan of Lebara Group for entering into Romanian Telecommunication Page7 3.3. BCG Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44 3.4. Ansoff Matrix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 4. International Marketing Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .46 4.1. Lebaras goal and objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 4.2. Evaluation of survey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 4.3. Marketing mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 4.3.1. Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 4.3.2. Place . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 4.3.3. Promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .48 4.3.4. Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 4.3.5. People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .49 4.3.6. Physical appearance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 4.3.7. Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .49 4.4. Advertisement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 4.4.1. Adword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .50 5. Price strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 6. Conclusion and recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .53 7. Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 7.1. Primary data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .55 7.2. Secondary data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56 8. Appendix . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8. 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. 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. 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. 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. 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. 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. 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. 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. 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17. 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18. 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. 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. 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. 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. 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 55. Marketing plan of Lebara Group for entering into Romanian Telecommunication Page55 7. Sources 7