I don't think Kenya has ever been a priority for Zain given that, among other considerations, Safaricom was (still is?) effectively a government-backed monopoly. Zain probably calculated that they could get more bang for their marketing buck by concentrating on other markets. So it makes sense for Zain to continue under-resourcing their Kenya operations until the cost-benefit calculations change in favor of more investments here. I'm not certain that the Kenya government really wants to level the playing field in the mobile communications area, there are too many vested interests (financial and nationalistic) that swing in favor of Safaricom. Witness the fervent, almost religious, defenses of Safaricom (and MPESA, Michael Joseph etc) as local, homegrown, bona-fide Kenyan outfits. Quite amusing to watch. On Wed, Sep 23, 2009 at 10:34 AM, Joseph McDonald <mcdonaldoj@gmail.com>wrote:
I have always had the opinion that ZAIN has good products in terms of quality.But it is very interesting to note that they are always playing catch up with Safaricom.What exactly is wrong with Zain's marketing or marketing team.I dont think its the budget.
A marketing campaign is usually aimed at increasing three things
a) Market Share ( this can be by users or revenue) b) Top of Mind Recall (this is where,if someone is asked to name at least 5 top telcos they know,your brand appears at least in the top 3). c) Mind share (where people know your products and know what they do).
Now lets take the first one market share..because that is the easiest criteria people use.They will say safaricom has 80% market share will the rest have 20%.
How does then Zain increase its market share or any other business for that matter.
Market Share : can be calculated
Share of Voice * Share of Preference * Share of Distribution
Share of Voice = can be increased by advertisement spent and PR campaigns ( but zain with their backers can take safaricom toe to toe so I dont think the problem is advert spent,may be the quality and the message of the adverts might be the problem)
Share of Preference= is to do with the intrinsic features of the service i.e quality,value and price.Well Zain products generally have good quality and well priced.
Share of Distribution= deals with how well your product has been distributed,do a small survey send 5 people to get you scratch cards one for zain,one for safcom,one for Yu,one for orange and one for the CDMA wireless.Whereever you are the guy who was sent the Safaricom card will come back First.While the CDMA guy will come back last.
So the problem with Zain is their distribution network is so poor.
On Wed, Sep 23, 2009 at 5:13 PM, Joram Mwinamo <joram.mwinamo@gmail.com>wrote:
Well at this rate we will be sending money to the people abroad....Will zap still make good cash?
If they overcome the glitches associated with such products and MARKET WELL before safaricom launch a similar product, then maybe , just maybe they will begin to make some forward marching...
On 9/23/09, saidimu apale <saidimu@gmail.com> wrote:
Hmmm... interesting details. Thanks. How is this different from a regular SWIFT money transfer? From what I understand, one doesn't need a bank account to receive the money, though it needs to be picked up at a bank (corrections anyone?).
I suppose the biggest beneficiary will be the recipient (no need to go to a bank to pick up the cash)? From a sender's standpoint, it appears nothing will be different (except possibly higher fees to cover the Zap portion of the transfer process?).
On Wed, Sep 23, 2009 at 9:38 AM, Joseph McDonald <mcdonaldoj@gmail.com>wrote:
From what I gathered from the launch they have partnered with two international banks Standard Chartered and Citibank.
So your ZAP account actually acts as a bank account.
So its like transfereing money from one account holder to another.
So this is how it goes a guy in newyork wants to send money to a folk in kenya.This are the details he will fill in
TRANSCATION:SEND MONEY TO THE ACCOUNT
A/c Branch:Standard Chartered Bank-NEWYORK A/c Number:01005-035500-00 (or whatever) A/c Name:Kamau/otieno/muli or (whoever) Swiftcode:SCBLKENXXXXX (or whatever) Details:Zain Kenya cell number e.g (0733123456) or whatever.
As soon as funds will be cleared on account you receive a transcation confirmation.
e.g Ref.ID :80831113461
Your received 1,000 KSHS from JOHN SMITH.YOUR AVAILABLE BALANCE IS 5000 KSHS ( assuming you had 4000 in your phone before)
On Wed, Sep 23, 2009 at 4:26 PM, saidimu apale <saidimu@gmail.com> wrote:
Any word on launch dates? On how it actually works (from the consumer side and from Zap's side)? Or is this vaporware?
saidi
On Wed, Sep 23, 2009 at 8:28 AM, Joseph McDonald <mcdonaldoj@gmail.com>wrote:
Hi Guys
Am just from a product launch.
ZAP has been modified to enable people from overseas to send money direct from their bank account,to the mobile phone of a local receipient.
They say this will revolutionize money transfer as we know it in East Africa.
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