This is explored innovative approach to serving the rural poor a two-part case study, Celtel Nigeria. Case A provides an overview of the mobile telecommunications market in Nigeria in mid-2007 as well as detailed demographic and socioeconomic information. At the time the case Celtel Nigeria is the second largest mobile phone company in the Nigerian market. The company has experienced considerable success in the service of Nigerian cities and larger towns, but has only the last … Read more »

This is explored innovative approach to serving the rural poor a two-part case study, Celtel Nigeria. Case A provides an overview of the mobile telecommunications market in Nigeria in mid-2007 as well as detailed demographic and socioeconomic information. At the time the case Celtel Nigeria is the second largest mobile phone company in the Nigerian market. The company has made significant achievements in the service of Nigerian cities and larger towns experienced, but moved to rural areas only recently to serve his attention poorer consumers – a massive, but as of yet under exploited market. But this shift from urban to rural was not easy, and even though some 50% of Nigeria’s population lives in rural areas, the challenge of reaching them sometimes seem overwhelming. The lack of a reliable national grid means that the company’s rural telecommunications towers operate on diesel generators, leading to high maintenance costs and diesel fuel have. Theft and vandalism expensive communication devices and generators has emerged as a major concern, dealing in need, full-time security guards on virtually any base station located outside of urban areas. At the end of the case A Celtel Nigeria Chief Operating Officer Lars Stork is pondering the challenges, the benefits of mobile telecommunications in Nigeria’s rural poor, the course for the students in the analysis of adoption possible way to approach the market for the company. Case B shows how Celtel could use to implement a highly innovative marketing strategy to low-income rural customers. The focus of this marketing approach is the so-called Rural Acquisition Initiative (RAI), a micro-franchising model with partnerships with local entrepreneurs.
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from
Jamie Anderson
Martin clutch
Source: ESMT – European School of Management & Technology
20 pages.
Release Date: 27 March 2009. Prod #: ES0961-PDF-ENG
Celtel Nigeria: On the way to serve the rural poor (A) HBR case solution

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