Celtel Nigeria: Towards serving the rural poor (B) Harvard Case Solution & Analysis

This is a two component case study that explores Celtel Nigeria's revolutionary approach to serving the rural poor. At the time of the case, Celtel Nigeria is the second largest mobile telecommunications business in the Nigerian market. The firm has experienced considerable success in serving the cities and larger towns of Nigeria, but has only recently changed its attention to serving poorer consumers in rural areas - an enormous but as of yet under tapped marketplace. But this shift from urban to rural has not been easy, and sometimes seem overwhelming although some 50% of Nigeria's population lives in rural areas of reaching them the challenges.

The lack of a reliable national electricity power system means that the rural telecommunications towers of the firm have to be run on diesel generators, resulting in diesel fuel costs and high care. Vandalism and theft of generators and high-priced communications equipment has emerged as a major concern, resulting in the need to employ full-time security guards on virtually every base station site outside of urban areas. Case B demo Celtel has been able to execute a marketing strategy that is highly progressive to serve low income rural customers. At the heart of this promotion strategy is what's called the Rural Acquisition Initiative (RAI), a micro-franchising model affecting partnerships with local entrepreneurs.

PUBLICATION DATE: March 27, 2009 PRODUCT #: ES0971-PDF-ENG

This is just an excerpt. This case is about STRATEGY about STRATEGY & EXECUTION

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