Current Market Situation

III. Current Market Situation:

1. Size of market

Mobile industry in Africa is seeing extraordinary growth. The mobile phone market has grown up to 25% in 2008 over the continent, according to a study conducted by Blycroft Publishing, a UK based telecommunications publisher. In 2009 there was activation of 74 million new subscribers to reach 370million mobile subscribers around the continent. Also the report indicates that there were 163 mobile networks live across Africa. [1]

Ghana is a country located in West Africa with population about 24 million people. The expected population of Ghana will be 30.7 million by the year 2020.

As Ms. Lucy Quist ,Tigo's Head of Operations for Africa quoted that the current wireless penetration in Ghana is 47%, which means that around 10.4 million of the population.[1]

There are about half of the population using mobile phone in addition to grows of population Tigo planning to have new 1 million subscribers year by year. For that mission Tigo set a series of programs and product to reach that goal.

Tigo divided the subscribers into different categories called them segmentation. This division helps to understand and analyze the needs for every category of people.

There are four different segments of people:

1. Survivors-Age 15-30yrs, highly educated (high school, University students)

2. Strivers- Age 25-35yrs, Professionals, mainly single, 84%male

3. Achievers-Age 25-50yrs, professionals, married

4. Homemakers-Age 30-50+, Married, mostly female

2. Market Attractive

The telecom sector of Ghana is one of the most liberalized markets in Africa. The market has two national fixed-network operators and five operating mobile telephone companies. The fixed-line telephone segment is almost a monopolistic market since Vodafone Ghana controls almost 98% of the market, while Airtel, the second network provider has only 2% market share.

Unlike the fixed-line telephone market, there is rigorous competition in the mobile telephone market and this has contributed to an improved penetration rate in the country. In 2008, the telephone penetration stood at 52.4% of which mobile telephones contributed 99%.

1. Sales Potential

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VII. Objectives to be Achieved by Marketing Plan:

1. Size of Market Share

Figure 1 illustrates the current market shares (August 2011) of the various mobile telephone operators in the country. MTN Ghana is the market leader with a market share of 48.49%. It is followed by Tigo with 20.59%, Vodafone Mobile with 18.48%,