xpress stc 08
TRANSCRIPT
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Xpress Services CompanyK.S.C.C
Company’s Background
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Company Background
Operating in the mobile retail/wholesale business for more than 8 years 250 outlet strong distribution network in Kuwait Extensive wholesale activities in Kuwait Separate Operations to deal with both operators in Kuwait Strong presence in Kuwait Marketing Scene Monthly Publication for company activities Enabling content for Mobile Handsets via 2G/3G networks Management of most popular VAS platform in Kuwait Long established customer services call center Authorized Distributor of Sony Ericsson
(previously AD for Siemens Mobile)
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Financial Summary
All figures in KD Change 2006 2005 2004
Revenues 11% 27,569,189 24,837,108 21,588,870
Profit from operations 8% 1,146,463 1,061,540 980,338
Extraordinary item (UN Claim)
- - 104,490
Net Profit 69% 1,037,148 613,697 363,553
Dividends paid 110% 882,000 420,000 200,000
Cash & cash equivalents 49% 6,406,846 4,299,897 2,878,135
Share capital 20% 1,440,000 1,200,000 1,000,000
Shareholders’ equity 53% 7,812,931 5,106,491 3,328,946
Earning Per Share (EPS) fils
41% 78 51 36
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Xpress Services CompanyK.S.C.C
Organization & Management
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Executive Management
Mansour Haider – General Manager Bader M. Al-Sarraf – Executive Manager Abdullah Kandari – Sales Manager Kalyan Sundaram – Financial Manager Tareef Al-Awadi – Marketing & VAS Manager
–
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Organization & Management
Current Organizational Structure
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Organization & Management
Current Branches Structure
Current Handset Division Structure
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Xpress Services CompanyK.S.C.C
Business & Product
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Business & Product
Retail of Multi-brand Mobile Handsets Wholesale of Multi-brand Mobile Handsets Wholesale Re-export of Mobile Handsets Authorized Retail/Wholesale Agent of Wataniya Telecom Services Authorized Retail/Wholesale Agent of ZAIN Services Retail/Wholesale of Multi-brand Mobile Handset Accessories Ownership of management of VAS platform in Kuwait, Bahrain, UAE,
Iraq, Yemen & Saudi Arabia Organization of Mobile Interactive Marketing programs Mobile Handset Servicing & Maintenance Publisher of Monthly Mobile-Tech – Sowalif - Habayebna Magazine’s Owner of Satellite TV Stations Funoon – Sowalif – Mokhtalif TV
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Xpress Services CompanyK.S.C.C
Distribution Strategy & Network
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Remarkable Recognition of Achievement
Innovation Market Makers – since 2005 Xpress has
expanded Sony Ericsson Market share in Kuwait from 9% to 22 % without undercutting market share for previous SE distributor
First provider of VAS services on Wataniya Network (2000) and since then provision of 60% of all VAS services even though there are 30 competitors
Extensive media exposure through collaboration with subsidiary popular media outlets in Kuwait
Performance #1 Middle East Distributor for Siemens
Mobile 1999 – 2005. #1 Wataniya (post/pre-paid –data lines)
distributor 1999 - 2007 #1 MTC/ZAIN overall distributor weight
since 2nd qtr 2006 – 3rd qtr 2007 #1 MTC/ZAIN postpaid lines distributor
since 3rd qtr 2005 – 3rd qtr 2007 #1 MTC/ZAIN data lines distributor since
3rd qtr 2006 – 3rd qtr 2007
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Retail 31 Retail stores under Xpress & Xcell
Brands Multiple 24 hrs Services Outlet at airport
& gas station branches Retail Promotion Programs for customers
(payment by installments; handset trial; free software upgrades)
Permanent locations in universities, major recreation areas, supermarkets, sports clubs, promotional events
Permanent long term agreement with labor syndicates, gov’t institutions, heavy private sector employers to provide handsets & operator services at discounted rates
1st quarter 08 addition of further 18 branches in fuel stations
Distribution Strategy & Network
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Distribution Strategy & Network
Wholesale 9 Wholesale stores under Xpress &
Xcell Brands Over 250 Direct Sub-distributors Wholesale Promotion Programs for
sub-distributors (credit facilities, price fluctuation compensation, wholesale target achievement reward program )
Free of charge Sales & Product training facilities
Free provision of in house marketing material, in addition to POS material from manufacturer.
Reward program for sub-distributors dealing with corporate customers.
Steps to implement full ERP solution within the coming 12 months
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Statistics
0
5
10
15
20
25
30
35
40
2004 2005 2006 2007
4U(WataniyaDistributor)
Xcell (ZAINDistributor)
0
20
40
60
80
100
120
140
2004 2005 2006 2007
4U (WataniyaDistributor)
Xcell (ZAINDistributor)
Y-on-Y Sales of Postpaid Lines Y-on-Y Sales of Prepaid Lines
In KD 000’sIn KD 000’s
Originality Market Facts – customers have more faith in ZAIN
postpaid services Market Facts – Xpress Services committed itself to
increase market saturation by vigorously promoting ZAIN postpaid lines and data services
Creativity Market Facts – expatriates are the most committed to
prepaid services for long distance calling Market Facts – Xpress Services in collaboration with
Wataniya Telecom has dominated this market by offering the least amount of red tape to issue line.
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Statistics
0
2
4
6
8
10
12
2004 2005 2006 2007
4U (WataniyaDistributor)
Xcell (ZAINDistributor)
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2004 2005 2006 2007
4U (WataniyaDistributor)
Xcell (ZAINDistributor)
Y-on-Y Sales of Recharge Cards Y-on-Y Value of Bill Collection
In KD MillionsIn KD Millions
Imagination Market Facts – customers enjoy having the freedom to
control their telephony payments through recharge cards Market Facts – Xpress Services commits its sub distributors
to diversify their purchases to include all operators recharges cards and methods to increase turnover
Uniqueness Market Facts – the more postpaid lines are sold the more
the bill collection Market Facts – Xpress Services allows its sub distributors
to collect bill payments with 72 hrs grace for cash delivery, very popular with distributors.
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Distribution Strategy & Network
Home Delivery Xhome 6 Delivery vehicles under Xpress
& Xcell Brands 100% month-on-month sales
increase Sales, evaluation, exchange, and
handset purchase services Nation wide hotline for 24 hrs
service A further fleet of 12 cars available
for wholesale distribution of products and services
Dec Nov Oct
InternetSubscriptions
Bill Collection
خدمةالتوصيلللمنازل مستويأداء
Internet Subscriptions
Handsets
Accessories
Lines
Bill Collection
Prepaid Cards
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Relentless Commitment
Largest multi-tiered grass roots marketing initiatives across Kuwait Strong management experience in handheld market Unparalleled expertise in after sales support, maintenance, redemption valuation Multimedia
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60
107136
90
2000 2001 2002 2003 2004 2005
Personnel Marketing Investments
840
90
210300
140
20052000 2001 2002 2004
(KD 000’s)
620
2003
158
2006
890
2006
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Distribution Strategy & Network
xpcell.com/ xcell-mtc.com 2 virtual review & shopping websites
for the service of customers 24 hrs customer response service
through chat module on sites Both sites connect to mmsq8.com
value added services portal Customer reward program for
subscribers to electronic newsletter in Kuwait only
Spring board for implementation of full fledged CRM online module.
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Distribution Strategy & Network
Indirect Channels Co-sponsorship of FMCG Marketing drives Co-sponsorship of national shopping events Co-sponsorship & participation of
professional events and exhibitions Sponsorship of TV & Radio shows Sponsorship of Gov’t & corporate staff
related events Sponsorship of sports events and health
drives Sponsorship of educational organizations
events. Sponsorship of charity events Sponsorship of Arts & Letters
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Indirect Channels (cont’d)
Regular supplier of multiple brands of handsets to both operators in Kuwait.
Authorized agent for both operators in Kuwait.
Active participation in public & private sector tenders for staff mobility bundled services.
Active relationship with home entertainment & electronics suppliers to bundle handsets with purchases.
Distribution Strategy & Network
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Xpress Services CompanyK.S.C.C
Market Strategy
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Market Strategy
After Sales Support Independent “Xpress” warranty available for all
sales. Within warranty period all maintenance services
free of charge. Encouragement Program for remittance of used
handsets in exchange for new ones (seasonal campaign)
Free software upgrades & programs via workshops or website for registered buyers.
24/7/365 customer support phone line Xpcell.com/ xcell-mtc.com available for online
support. Special training sessions for sub-distributor staff
in coordination with operators to encourage use of handset facilities coinciding with operator services (Service settings, service activation via network
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Market Strategy
Workshops & Service Centers 2 Service Centers distributed geographically all
across the country. 2 Level 3 Workshops. All Service Centers & Workshops are manned
18 hrs per day via 3 six hour shifts, with 1 engineer & 3 technicians per shift.
24 hrs drop off/ pick up service at 24hrs airport branch.
24/7/365 home delivery/pick up service Maximum 72 hrs maintenance schedule. Replacement handset at discounted fee for
warranty holders. All service centers are connected to branches
via WAN to enhance CRM
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Market Strategy
Customer Services Call Center To service Xpress Cell retail and wholesale operations. 24/7/365 service over hotline: 808880. Call Center CSR’s all trained on sales, customer
response and operator services. CSR’s have read-only access to retail & wholesale
customer database and logistics planning. CSR’s have read-only access to loyalty program
software & VAS database. Call center connected to all branches via WAN to
enhance CRM
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Market Strategy
Amount & Types of Mobile Content available: User created (images, videoclips, music etc.) Personal (music, movies, movieclips, games, applications, etc.) Group (family, friends, daughter's soccer team etc.) Community (dog owners' image album etc.) Subscribed (Horoscope Multimedia news service etc.) Network provided (location-based weather info etc.)
ImagesMMSs Media/music GamesVideoclips
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Market Strategy
Mobility is the Next Big Thing in Value Added Services
New mobile network based product category– First product: Command & Conquer Mobile Phone enabled Platform on
mobile and over Xpress cell IVR Chat & SMS Chat service Multi user services
– near distance community gaming over Bluetooth – wide area mobile games using cellular networks
Opportunity for new revenue streams for operators Collaboration with leading service developers and
publishers
Xpress Cell also acts as a publisher for rich, interactive local games: Domna, Kot bu Seta, etc......
Service distribution on memory cards and via xpress websites on the Internet
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Brands
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Xpress Brand ValueStrong brand image based on effective strategy
• “high quality, suitable price”model
► positive image (90-00s)
• Customer focused strategy Clubcard - a loyalty scheme (2007)
• Improving customer service & customer shopping experience
Good value for money Innovative Local Populist Dynamic
Creating value for customers, to earn their lifetime loyality
[ ]Creating Value for customers to earn
their lifetime loyalty
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THANK YOU
Xpress Services Co. (K.S.C. closed)Tel: +965 6009000Fax: +965 2409202
Email: [email protected]