University of the People: Hormuud Telecom Marketing Strategy Report

This report provides a comprehensive analysis of Hormuud Telecom's marketing strategy, focusing on its internet services within the framework of the 4Ps: Product, Price, Place, and Promotion. The report examines Hormuud's product offerings, including mobile broadband and W-ADSL, and details the pricing strategies employed, such as tiered data packages and promotional offers. It explores the company's distribution and customer service infrastructure, highlighting its physical presence in key locations across Somalia. Furthermore, the analysis delves into Hormuud's promotional activities, including advertising campaigns and philanthropic initiatives, and assesses their impact on brand image and market penetration. The report concludes by emphasizing Hormuud's continued success and its competitive edge in the Somali telecommunications market, particularly in the face of strong competition. The report also references Hormuud's strategic alliances and its overall value proposition to its customers.

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Written Assignment – Week 1.
Master of Business Administration, University of the People
BUS 5112 – Marketing Management
Dr. Thierry Belinga
November 17th, 2021.

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Written Assignment Week 1
Hormuud Telecom Company, founded in 2002 is one of the biggest telecommunication
service providers in Somalia (Hormuud Telecom, n.d.). Hormuud was established amid the
Somali civil war. At that time the telecommunication infrastructure of Somalia was non-existent,
and Hormuud took a calculated risk, by trying to provide telecommunication services to people
who have not heard about their services in their life (Hormuud Telecom, n.d.).
Hormuud Telecom now provides an array of services; including mobile money,
telecommunications, and fiber optic internet, just to name a few. In addition to that Hormuud has
a strategic alliance with other companies that operate in other industries, including Salaam Bank,
Hormuud University, and Buruj Construction (Hormuud Telecom, n.d.). Today I will discuss
how Hormuud Telecom, especially their internet services, and their strategic marketing got them
to become one of the biggest telecommunication companies of Somalia, looking through the
lenses of the 4P’s (Product, Price, Place, Promotion) of marketing.
The 4P’s of Marketing
The 4P’s of marketing is an essential factor for any good marketing strategy to consider
(Principles of marketing, 2015). It emphasizes the product that is sold, at what price it is sold,
where it is sold, and how it is promoted. I will take these four factors and apply them to
Hormuud Telecom’s strategic management.
Product
Hormuud Telecom offers a wide range of products, but today we will focus on their
internet services. Under this segment, Hormuud telecom provides two key services: Mobile

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broadband, and W-ADSL (Hormuud Telecom, n.d.). Mobile broadband is a mobile data internet
provided through Hormuud’s Sim card. W-ADSL is a WIFI internet provided through a modem.
Price
Hormuud Telecom employs a strategy that divides the pricing of the services into the
speed of the network and the expiration date of the data. In addition to that, they also use a
Friday package, which a cheaper but expires soon, so they can hook additional customers into
their business (Hormuud Telecom, n.d.).
Mobile Broadband Prices
The mobile broadband prices are divided into two categories; Basic Bundles, and Friday
Package (Hormuud Telecom, n.d.).
Offer Data Validity
$1 2GB 30 Hours
$0.5 900 MB 30 Hours
Table 2.0 Friday Package
Table 1.0 Basic Bundles Prices
Place
Hormuud Telecom mainly operates in south and central Somalia. Hormuud Telecom has
at least one building in every city, town in the area that they provide their services, these
buildings serve as a customer support center, shopping center, and offices. Hormuud provides its
Price $ Data Validity
$0.25 300 MB 24 hours
$0.5 850 MB 24 hours
$1 1.5 GB weekly
$5 9 GB 30 Days
$6 Unlimited weekly
$10 20 GB 60 Days
$20 Unlimited 30 Days
$30 30 GB 90 Days

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customers with a smooth shopping experience, where everyone knows how, and where to get
their products from. Their distribution centers, also act as a repair center, so it creates an air of
confidence in the customers that they know where to get repairs if things don’t work as planned
(Hormuud Telecom, n.d.). Hormuud does not allow any third-party company to distribute its
products on its behalf.
Promotion
Since Hormuud has a lot of competitors in this segment, they employ a lot of strategies,
including TV ads, Social Media ads, and Billboard ads. But one of the best strategies that
impressed me personally is the philanthropic actions they provide through Hormuud Foundation.
This agency not only works to help people, but it is improving the image of the company,
showing that Hormuud is not a power-hungry corporate, like other companies, but also cares
about its people.
Value Proposition
Hormuud Telecom Company provides you a high-speed mobile data, and WIFI internet
connection, at a low cost utilizing the already existing antenna infrastructure. Our internet
services are fast, reliable, and overall affordable, with us you can get an internet speed competing
with the developed countries. So take Hormuud for your office, and home, and enjoy high speed
reliable, and affordable internet.
Conclusion
Hormuud Telecom Company without a doubt will exist in the coming years, and we are
part of life, through its innovation, and market expansion, though I have focused on its internet
services, Hormuud also provides other great services, including mobile money transfer, which

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revolutionized the way Somali people transact money between them. Hormuud has competitors
in every category, and their main competitor is Somali Telecom Company, Owned by Dahabshiil
Bank International, they also provide the same services, sometimes at even cheaper prices. But
the ecosystem that Hormuud built is strong, and not even cheap prices can penetrate through it.

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References
Hormuud Telecom. (n.d.). Mobile Broadband. Retrieved from Hormuud Telecom:
https://www.hormuud.com/business/services/internet/mobile-broadband.aspx
Hormuud Telecom. (n.d.). The story Of Hormuud. Retrieved from Hormuud Telecom:
https://www.hormuud.com/corporate/company/the-story-of-hormuud.aspx
Hormuud Telecom. (n.d.). W-ADSL. Retrieved from Hormuud Telecom:
https://www.hormuud.com/business/services/internet/w-adsl.aspx
Principles of marketing. (2015). University of Minnesota Libraries
Publishing. https://doi.org/10.24926/8668.1901 (Original work published 2010)