The USP of NetLink is that it provides a special dial-up service, through which you can use the internet and talk on the phone at the same time, using the same phone line. This is a technology which is currently not in Oman. Although the speed on service is fast, but is not as high speed as broadband service. It provides two types of service, pre-paid cards and post-paid. The cost of subscription for NetLink is also very low, compared to both Omantel and DirecWay. The service will not only concentrate in commercial towns and cities, but will provide access to the internet in the rural towns as well. The product will be distributed in NetLink outlets around Oman, and also in local supermarkets and stores. Furthermore, NetLink will also provide special packages in offers at different times, such as in festivals and will also give special rates in the pre-paid cards on occasions such as Eid and the National Day of Oman.
SWOT Analysis
Strengths
- NetLink provides high speed internet service at a very low and competitive price.
- High quality customer service with a 24 hour helpline (phone)
- NetLink supplies internet service with new technological facilities
- NetLink is run by a young group of individuals with a very high and exceptional educational background
- Provides internet service to remote areas
- Provides a range of packages, both pre-paid and post-paid
- Allows customers to use dial-up internet and use the phone at the same time (not keeping the phone line busy)
- Has several outlets spread in different areas of Oman
- NetLink internet service can be bought from several local supermarkets and stores.
Weaknesses
- NetLink does not provide high-speed broadband service.
- Does not have experienced employees
- Only provides internet service
- Small number of employees for the size of the business
- Small number of outlets in the capital and other commercial towns
- Provides internet service only in Oman
Opportunities
- GROWTH – to expand the business and offer more services such as broadband etc.
- Improve current facilities
- To launch NetLink in other countries in the Gulf and Middle East, thus becoming international
- Build partnerships with other businesses to increase revenue and profit
- Expand – to buy other businesses and run that business under NetLink Corporation
Threats
- Security problems such as terrorist threats or bomb attacks will destabilize NetLink.
- COMPETITION – Omantel and DirecWay
- These two businesses are the main threats for NetLink
- They will try to compete with NetLink to keep hold of their market share.
- They might also try to reduce prices and introduce other marketing incentives to increase consumers of their product/service.
- New businesses that might set up an ISP in Oman
- Natural disasters such as an earthquake or tidal wave.
Marketing Strategy
For all businesses, it is essential to have a marketing strategy. Similarly, NetLink has a marketing strategy which revolves around the 4 P’s: Product, Price, Promotion and Place (Distribution).
Product
NetLink will provide a range of products to customers for internet service. The two ways in which it will distribute internet are:
- Pre-paid cards
- Post-paid packages
There will be several pre-paid cards and post-paid packages on offer for customers. The table below shows the product range of NetLink:
Price
The main pricing strategy of NetLink will be penetration. This is because NetLink has an aim of gaining 20% market share in the first. Through the penetration strategy, the cost of the product/service will be made very low to attract consumers. Although development costs were relatively high, this will not affect the business too much. NetLink will want to gain maximum revenue with a short term, to expand the business and achieve the long term plans. The pricing is also competitor based, as both Omantel and DirecWay costs are high. The price of NetLink is comparatively very low, and this will attract the people. For example, the Omantel Al-Ufuq internet pre-paid card charges 333 baisas/hr but the normal rate for any NetLink Pre-paid card is 200 baisas/hr and some of them have special rates in specific periods of the day. The price is also very sensitive in the rural areas. This marketing strategy will ensure that people buy the NetLink internet service. The price will also surprise the people as the internet service is cheaper and the technology is new, as you can talk on the phone while using the internet on the same phone line. Businesses that require the use of internet for long periods of time will benefit from it, as it will save them money and not have to buy separate phone lines. Overall, NetLink will be highly dependant on its price scheme.
Promotion
NetLink will have a huge promotional mix to attract consumers to buy the service. Its objective will be:
- To make consumers aware of the new product launch
- To persuade consumers
Therefore, NetLink will use a promotional mix with both ‘below the line’ and ‘above the line’ activity. This will create awareness of NetLink on a large scale.
Below are the ways in which NetLink will promote itself:
Sale Promotion
NetLink will introduce several short term incentives to increase sales. It will take part in local exhibitions, trade fairs and festivals. In those outlets, NetLink will offer special offers. For example, with every 2 rial pre-paid card, the customer receives a 1 rial card for free. If the consumer buys a 4 rial pre-paid card, he/she gets a 2 rial card for free, and so on. Furthermore, it will also make the installation cost for free, if the consumer wishes to buy a post-paid connection. These short term incentives will encourage brand switching, benefiting and creating long-term customers for the future.
Brochures and leaflets will also be circulated for free, to create awareness.
Moreover, there will be special pre-paid cards made on special days such as Eid and the National Day of Oman. The table below shows the special rates offered for those cards:
Advertisement
NetLink will also promote through advertising. There will be adverts on billboards, poster, newspapers, magazines, and television. Some adverts will be corporate advertising, which will promote NetLink as a whole.
Personal Selling
NetLink will employ sales representatives who will go to house by house to sell the product. They will also call houses to through the phone to promote NetLink and inform them about special offers and packages.
Place
NetLink will sell its products through two channels of distribution. These are:
- Exclusive
- Extensive Widespread
Exclusive channel is where NetLink will sell its service and products through its own, limited number of outlets. This will promote NetLink as a whole, and one can buy the pre-paid card or the post-paid package that he/she wishes.
The extensive widespread channel is where it is distributed in a large scale to various supermarkets and stores. This will ensure the increase of sales, as the product and service will be widely available to a larger population.
ê
NetLink will also distribute its service on two levels of distribution, level 0 and level 1. Level 0 is when NetLink, the manufacturer will directly supply its products to consumer (i.e. NetLink outlets). In Level 1, NetLink will supply the products to the retailer, and then the retailer will make it available for consumers to buy.
As NetLink is a new ISP, it will use the Push Strategy. Thus, as a manufacturer, it will force the product through channels by giving it to intermediaries. If necessary, it will persuade the intermediaries by giving discounts and other incentives.
Conclusion and Evaluation
Overall, the marketing plan of NetLink is very balanced and gives equal importance to segments. If successful, NetLink can think of growth and expansion. However, if NetLink fails to gain market share in Oman, the following considerations will come into the scene:
- Sell NetLink to another company
- Partner with another company to cover financial losses (if any) and start over again with a different marketing strategy
- Form a joint partnership with either Omantel or DirecWay
- NetLink could also change its service. It could change from an ISP to Telecom Service (mobile)
