A business can go after pennies and make billions. Safaricom provides a case study.
The Sh1.2 trillion corporate behemoth is East Africa’s most profitable firm.
Now 20 years old, the giant telco has cut a niche for creating products tailored for the everyday man. Safaricom has become deeply woven into the Kenyan psyche forming part of the lingua franca and daily life.
Think about words such as Sambaza, Fuliza or M-Pesa – Safaricom products that have become nouns. Read More
Just what do they do to dominate the market and sell to the masses?
1. Demand-driven products
It’s hard to believe that Safaricom was once an “underdog.” When it established itself at the start of the millennium, its main competitor – KenCell (predecessor to Airtel) was focused at the top-end, or call it the top–tier of the market. Back then, mobile phones and calling cards were a preserve for the rich and those working in top companies. KenCell chose to remain to pursue this market.
Safaricom shifted to target the everyday man, even rebranding itself as the “better option.” This is how it would fast overtake KenCell by offering services at the lowest rates.
Safaricom began a billing system based on seconds in contrast with its competitor’s minutes. This would later see the introduction of products such as Bamba 5 or Bamba 10. KenCell would later change its tariffs but was unable to catch up with Safaricom.
Lesson: Select your target market carefully. Who will make the most of your product? Find that group then appeal to their interests. Why should they buy from you and not from another business?
2. Advertise and localise In 2020, Safaricom was the biggest outdoor advertiser after spending Sh62 million, followed by Coca Cola with Sh58 million. Both companies sell to the masses.According to a marketing industry report, the leading campaigns were also from the same companies. These were Safaricom for You and Coca-Cola Taste the Feeling respectively.From the onset, Safaricom has been big on advertisements through which it has managed to localise and attract millions of customers.These are companies whose adverts even become a jingle familiar to every household in Kenya and in turn becomes the product people have to purchase.Lesson: Don’t be the entrepreneur who thinks that marketing is not important and that products or services will sell themselves if they are good. Newsflash; if established brands advertise, you should consider it too. There are many options […]
