MKT 301 – Principles of Marketing Project Instruction

and Assessment Rubric

STC company

Student’s name ID
Raghad Almashhadi 221410703
Felwa Almutairi 220511283
Fajr Waleed 222411072
Alhanouf Alkathiri 219410584
Table of Contents
Executive Summary.....................................................................................................................................3
Introduction and Company Choice..............................................................................................................4
Analysis of the company and application of theoretical concepts...............................................................5
Environmental analysis............................................................................................................................5
Segmentation strategies..........................................................................................................................8
Product, pricing, and distribution strategies..........................................................................................11
Marketing communications strategies...................................................................................................15
Conclusion.................................................................................................................................................19
Referencing................................................................................................................................................21

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Executive Summary
Saudi Telecom Company (STC) is Saudi Arabia’s leading
telecommunications provider, playing a pivotal role in the digital
transformation landscape of the Kingdom and the wider Middle East. Since
its establishment in 1998, STC has diversified its portfolio beyond basic
telecommunications to include internet services, digital payments,
cybersecurity, and cloud solutions. As a key contributor to Saudi Arabia’s
Vision 2030, STC’s strategy revolves around enabling digital transformation
and fostering economic growth through technological advancements,
making it a crucial entity in both local and regional markets.
This report provides a detailed examination of STC’s market strategies,
beginning with an analysis of its micro and macro environments. The macro
analysis explores the impact of political, economic, social, technological,
legal, and environmental factors on STC’s operations. Saudi Arabia’s
national digitalization goals and economic reforms have driven STC to
innovate and remain competitive, especially as it competes against
companies like Mobily and Zain. A microenvironmental analysis reveals that
STC’s strong partnerships and technological advancements have bolstered
its competitive edge, enabling it to cater to a growing consumer base that
demands reliable, high-speed internet and mobile services.
The report also delves into STC’s market segmentation strategies, which
reflect its approach to demographic, geographic, behavioral, and
psychographic factors. STC has skillfully targeted distinct market segments
such as individuals, businesses, and government entities, creating
customized offerings to meet their diverse needs. Through a differentiated
positioning approach, STC emphasizes its role as a trustworthy,
technologically advanced provider, which has helped it secure a dominant
position in the telecom sector.
Additionally, STC’s pricing and distribution strategies are examined,
revealing a competitive pricing model tailored to various consumer
segments. Its distribution strategy, which incorporates both physical stores
and digital platforms, ensures a seamless and accessible experience for
customers. STC’s well-rounded marketing communication strategy includes
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a mix of traditional and digital channels, creating a comprehensive
communication framework that aligns with its brand objectives.
In conclusion, STC’s business strategies underscore its commitment to
staying at the forefront of the telecommunications industry. By effectively
navigating the challenges of a dynamic environment and adopting robust
segmentation, pricing, distribution, and communication strategies, STC
maintains a competitive advantage while supporting Saudi Arabia’s national
goals for economic development and digitalization.

Introduction and Company Choice

Saudi Telecom Company (STC) is the largest telecommunications
operator in Saudi Arabia and a leading player across the Middle East.
Established in 1998, STC has evolved from a traditional telecom provider to
a multifaceted technology company, offering services in mobile and fixed-
line telecommunications, internet, and digital solutions, including
cybersecurity and cloud services. The company’s orientation centers on
driving innovation, enhancing connectivity, and supporting the Saudi
government’s Vision 2030 initiative to modernize the nation’s economy and
foster sustainable development. With a mission to connect and empower
Saudi society, STC emphasizes digital transformation and actively
contributes to the Kingdom’s goal of creating a digitally enabled and
diversified economy.
STC was chosen for this analysis due to its integral role in Saudi Arabia’s
telecommunications and digital technology landscape. The company not
only dominates the local market but also holds a significant position
regionally, with operations in Bahrain and Kuwait and investments across
the broader Middle East and Asia. STC’s commitment to the Kingdom’s
Vision 2030 aligns well with the core aspects of modern business analysis,
making it an ideal company to study from both a strategic and operational
perspective.
In selecting STC, we also consider the company’s position as an innovator
in areas such as 5G, artificial intelligence (AI), and Internet of Things (IoT)
technologies. STC’s proactive approach in adopting advanced technologies
has enabled it to maintain competitive strength and continue serving as a
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digital enabler for individuals, businesses, and government entities alike.
Analyzing STC’s strategies offers insights into how a telecommunications
giant can successfully align with a nation’s socio-economic development
goals, adopt cutting-edge technologies, and address diverse consumer
needs across various market segments.

Analysis of the company and application of theoretical

concepts
Environmental analysis
Macro-Environment (PESTLE Analysis)
1. Political Factors:
o Saudi Arabia’s Vision 2030 is a major driving force for STC, as
the national plan prioritizes digital transformation and economic
diversification beyond oil.
o Government regulations also influence STC, requiring
compliance with data protection laws and national telecom
regulations.
2. Economic Factors:
o As the largest economy in the Middle East, Saudi Arabia’s
economic health directly affects STC’s growth potential.
o Fluctuations in oil prices impact consumer purchasing power
and government spending on public projects, which can
influence demand for STC’s services.
o The economic impact of global events, like the COVID-19
pandemic, has accelerated digitalization, increasing demand for
reliable internet and cloud solutions as businesses and
education systems move online.
3. Social Factors:
o Saudi Arabia has a young, tech-savvy population, with a
median age of around 30.

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 o Cultural shifts toward digital engagement have been pivotal,
people use mobile banking, online shopping, and social media.
o Additionally, there is increasing social awareness around digital
privacy and cybersecurity.
4. Technological Factors:
o STC is at the forefront of technological innovation in the region,
particularly through its early adoption and development of 5G
networks.
o The rise of artificial intelligence (AI) and cloud computing has
allowed STC to diversify its offerings beyond traditional telecom
services.
o To stay competitive, STC collaborates with international tech
giants, such as Huawei and Ericsson, for infrastructure
development and invests in continuous innovation to maintain
technological leadership in the Middle East.
5. Legal Factors:
o As a telecommunications company, STC operates under
stringent legal requirements, including cybersecurity
regulations, data privacy laws, and competition policies.
o Intellectual property rights are also an essential aspect, as STC
must ensure that its innovations and proprietary technologies
are protected.
6. Environmental Factors:
o Environmental concerns are rising in Saudi Arabia, especially
around sustainable energy and resource efficiency, as outlined
in the Vision 2030 plan.
o STC is actively involved in reducing its carbon footprint by
optimizing its data centers, promoting electronic waste recycling
programs, and utilizing renewable energy sources where
feasible.

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Micro-Environment (Porter’s Five Forces)
1. Competitive Rivalry:
o STC faces strong competition from other telecom providers in
Saudi Arabia, such as Mobily and Zain, which offer similar
services in mobile and internet packages.
o As a market leader, STC differentiates itself through its
investment in 5G technology, extensive infrastructure, and its
comprehensive portfolio, which includes services beyond
telecom, such as cloud computing and cybersecurity solutions.
2. Supplier Power:
o STC relies on technology suppliers and equipment vendors,
such as Huawei and Ericsson, for critical network components.
o STC also partners with software providers for specialized
solutions, particularly in areas like cloud services and
cybersecurity.
3. Buyer Power:
o Saudi consumers have considerable power due to high
expectations for service quality, competitive pricing, and
customer support.
o Corporate and government clients also have significant
influence, as STC’s business solutions are critical to national
projects and digital infrastructure.
4. Threat of New Entrants:
o The threat of new entrants in the Saudi telecom market is low,
given the substantial investment and regulatory approvals
required to establish infrastructure.
o However, emerging digital competitors, such as international
OTT (over-the-top) providers and cloud service companies, are

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 encroaching on areas like content streaming and digital
services, posing a potential indirect threat.
5. Threat of Substitutes:
o While traditional telecom services face substitution threats from
OTT services (e.g., WhatsApp for messaging and Zoom for
video calls), STC mitigates this by offering its own digital
solutions and strategic partnerships with content providers.
o The growing popularity of internet-based communication
methods challenges traditional revenue streams, but STC’s
adaptability in adopting new services and promoting bundled
packages helps retain customers.
Segmentation strategies
STC (Saudi Telecom Company) uses a comprehensive market
segmentation approach to address the diverse needs of Saudi Arabia’s
dynamic population. Through demographic, geographic, psychographic,
and behavioral segmentation, STC tailors its services to meet the needs of
individual consumers, businesses, and government clients.
1. Demographic Segmentation:
o Individual Consumers: STC targets a range of age groups,
with a specific focus on younger, tech-savvy demographics who
demand high-speed internet, mobile data, and digital
entertainment.
o Corporate Clients: For businesses, STC provides services like
secure internet connections, cloud storage, and cybersecurity
solutions.
o Government and Institutional Clients: STC collaborates with
government agencies on national digital transformation
projects, such as smart city initiatives, digital identity programs,
and public sector cybersecurity.

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2. Geographic Segmentation:
o Urban vs. Rural Segments: STC’s infrastructure investment is
concentrated in urban areas where demand for high-speed
internet and 5G services is strongest. However, it also
addresses rural communities, providing essential mobile
coverage and internet services to promote connectivity across
Saudi Arabia.
o Regional Expansion: While STC primarily serves Saudi
Arabia, it also operates in other markets in the region, including
Bahrain and Kuwait.
3. Psychographic Segmentation:
o Lifestyle and Technological Adoption: STC segments
customers based on their digital engagement, including those
who frequently use social media, streaming services, and
online gaming.
o Business and Security Needs: Many businesses, especially
those involved in finance, healthcare, and education, prioritize
secure, reliable networks.
4. Behavioral Segmentation:
o Usage Patterns: STC segments customers based on usage
levels, offering high-data packages for heavy users, such as
gamers and frequent streamers, and smaller, more affordable
packages for light users.
o Loyalty and Value: Recognizing the importance of customer
loyalty, STC has introduced loyalty programs, such as Qitaf,
that reward long-term customers with points redeemable for
discounts or perks.

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Targeting Strategy

STC adopts a differentiated targeting strategy, tailoring its services and

marketing efforts to specific customer segments:
1. Individual Consumers: This is a primary target group, where STC
focuses on meeting the mobile and internet needs of a young, tech-
oriented demographic.
2. Businesses: STC’s business solutions segment targets companies
of various sizes, from startups to large corporations, offering services
such as cloud computing, IoT solutions, and cybersecurity.
3. Government and Public Sector: STC targets government entities
with specialized services like smart city solutions, secure digital
infrastructure, and data management for public services.
Differentiation Strategy
STC differentiates itself from competitors through a focus on technology
leadership, customer-centric innovation, and comprehensive service
portfolios:

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 1. Technology Leadership: STC’s emphasis on 5G and IoT technology
distinguishes it from other telecom providers. By being one of the first
to adopt and expand 5G in the region, STC sets itself apart as a
pioneer in telecommunications.
2. Integrated Digital Solutions: Beyond traditional telecom services,
STC provides an integrated suite of digital solutions, such as cloud
computing, cybersecurity, and managed IT services.
3. Customer-Centric Approach: STC differentiates itself by providing
customizable packages that meet diverse customer needs, including
bundled packages, add-on services, and flexible pricing models.
4. Sustainability and Corporate Responsibility: STC’s commitment to
environmental sustainability and social responsibility enhances its
brand image, especially as more customers and partners prioritize
eco-friendly practices.
Positioning Strategy
STC’s positioning strategy emphasizes its role as a leader in digital
transformation and innovation within Saudi Arabia:
1. Market Leadership and Reliability: STC positions itself as a market
leader in telecommunications, providing high-quality, reliable
connectivity and extensive network coverage across Saudi Arabia.
2. Digital Transformation Partner: STC is positioned not just as a
telecom company but as a comprehensive digital transformation
partner.
3. Alignment with Saudi Vision 2030: STC positions itself as a strong
supporter of the Saudi government’s Vision 2030 goals.

4. Premium Service for Consumers: For individual customers, STC’s

positioning strategy includes a premium brand image with reliable
services, high-speed internet, and access to the latest technology,
including exclusive content partnerships with international streaming
services.

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Product, pricing, and distribution strategies
Product Strategy
STC offers a broad product portfolio designed to serve both individual
consumers and businesses, including mobile services, broadband internet,
digital and streaming content, and advanced digital solutions.
1. Mobile and Broadband Services:
o STC’s core offerings include prepaid and postpaid mobile plans,
high-speed broadband, and 5G connectivity. These services are
tailored to cater to various usage levels and income groups.
o The company has also been an early adopter of 5G technology,
positioning itself as an industry leader in delivering high-speed
internet and connectivity solutions.

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 2. Digital Services and Content Partnerships:
o Recognizing the increasing demand for digital entertainment,
STC has collaborated with content providers, like Netflix, to
offer exclusive content streaming bundles.
o STC also provides e-payment services through its STC Pay
platform, catering to the digital banking needs of both
individuals and businesses.
3. Business Solutions and Digital Transformation Services:
o For corporate clients, STC offers cloud computing,
cybersecurity, IoT, and data analytics services through its digital
arm, STC Solutions.
o STC Solutions also plays a pivotal role in supporting
government projects, including smart city initiatives, positioning
the company as an essential player in Saudi Arabia’s public
sector modernization efforts.
Pricing Strategy
STC employs a value-based and market-competitive pricing strategy
that varies across segments to optimize affordability and revenue
generation.
1. Tiered Mobile and Broadband Pricing:
o For mobile and internet services, STC uses tiered pricing to
offer flexibility and cater to different budgets. For instance, STC
provides a range of data plans, from economical packages for
low-data users to premium, unlimited data plans for heavy
users.
o STC’s pricing reflects its premium positioning and service
quality, especially for high-demand services like 5G. While its
premium packages are priced higher, STC justifies this by
emphasizing faster speeds, exclusive content, and enhanced
customer support.

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 2. Bundling Strategy:
o STC effectively uses bundling to offer a combination of services
(e.g., mobile, broadband, and streaming content) at a
discounted price, enhancing the perceived value for customers.
For instance, customers who subscribe to both mobile and
broadband services can access exclusive offers or add-ons at a
lower price.
o For corporate and government clients, STC offers customized
packages tailored to their specific needs, including bundled IT,
data management, and cybersecurity solutions.
3. Flexible Payment and Loyalty Programs:
o STC’s Qitaf loyalty program rewards customers with points for
every purchase or service usage, which can be redeemed for
discounts or rewards.
o Additionally, STC provides flexible payment plans, particularly
for its higher-tier services, such as premium 5G plans and
corporate solutions.
Distribution Strategy
STC’s distribution strategy leverages multi-channel accessibility,
ensuring widespread availability of its products and services across Saudi
Arabia.
1. Physical Stores:
o STC maintains a vast network of retail outlets across urban and
rural areas, ensuring broad accessibility for customers who
prefer in-person interactions.
o Retail stores play a crucial role in showcasing new products,
such as the latest smartphones and 5G offerings. In-store
personnel are trained to guide customers through the options
and encourage upgrades to higher-tier services, making these
locations important for customer acquisition and upselling.

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2. Online Sales and E-commerce Platforms:
o STC has invested in a comprehensive online platform, allowing
customers to purchase products, manage accounts, and
access support services digitally.
o In response to the increasing digitalization and the rise in
mobile app usage, STC’s app enables customers to pay bills,
top up balances, view usage details, and redeem Qitaf points
conveniently.
3. Third-Party Retailers and Distributors:
o To increase reach, STC partners with third-party retailers and
electronics stores across the region.
o The company also collaborates with major smartphone
manufacturers like Apple and Samsung to offer devices bundled
with STC plans.
4. Direct Sales to Corporate Clients:
o For corporate clients, STC uses a direct sales approach, with
specialized teams that manage client relationships and provide
customized solutions.
o STC also collaborates directly with government entities,
ensuring seamless distribution of its products and services to
support large-scale national projects.

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Marketing communications strategies
Saudi Telecom Company (STC) employs a robust, multi-channel
marketing communication strategy to reach its diverse audience segments,
including individual consumers, businesses, and government clients. With a
strong focus on digital marketing, content partnerships, and brand-aligned
campaigns, STC effectively connects with its audience, enhances brand
loyalty, and strengthens its position as a leader in the Saudi
telecommunications industry.
1. Digital Marketing and Social Media
STC has invested heavily in digital marketing, particularly across social
media platforms like Twitter, Instagram, Facebook, and Snapchat. These
platforms allow STC to engage with Saudi Arabia’s tech-savvy, young
demographic, which constitutes a significant portion of its target audience.
 Social Media Engagement: STC regularly posts updates,
promotional content, and interactive posts that encourage
engagement from its followers.
 Influencer Partnerships: STC collaborates with influencers and
social media personalities to endorse its products and services,
particularly for its high-speed internet and streaming bundles.
 Targeted Advertising: Through social media advertising, STC can
target specific demographics based on age, interests, location, and
behavior.
This digital-first strategy has proven highly effective in Saudi Arabia, where
social media adoption is high. The ability to connect with users through
mobile devices also aligns with STC’s brand, as it strengthens the
association between STC and innovative telecommunications.

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2. Content Marketing and Educational Campaigns
STC leverages content marketing to educate customers about its new
services, product features, and technological advancements. This
approach is particularly relevant for complex offerings, such as 5G
technology, cybersecurity solutions, and cloud services, which may require
additional customer understanding.
 Explainer Videos and Tutorials: STC publishes videos and
infographics to explain the benefits of services like 5G and cloud
solutions.
 Blog and Knowledge Hub: STC’s website includes a blog that
covers topics relevant to technology, telecommunications, and digital
solutions.
 Educational Events: STC often hosts webinars and workshops for
corporate clients to demonstrate its digital services, such as
cybersecurity and IoT solutions.
By offering informative content, STC builds trust and credibility among
customers, positioning itself as a knowledgeable and customer-oriented
provider.
3. Traditional Advertising and Sponsorships
Despite its focus on digital marketing, STC continues to invest in traditional
advertising channels, including television, radio, and outdoor billboards.
These channels reach a broader audience, including individuals who may
not be as digitally connected but still use STC’s services.
 Television and Radio Commercials: STC uses mass media for
broad-based campaigns, especially when promoting new services,
special offers, or significant upgrades like the 5G rollout.
 Billboards and Outdoor Advertising: STC’s outdoor advertising
campaigns are particularly visible in urban centers.

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  Event Sponsorships: STC sponsors major cultural, sports, and
entertainment events, such as the Riyadh Season and Saudi sports
leagues.
These traditional advertising efforts reinforce STC’s position as a leading
telecommunications provider in Saudi Arabia and help reach demographics
that may not engage as frequently with digital channels.
4. Customer Loyalty Programs and Personalized Communication
STC’s Qitaf loyalty program is one of its most effective communication
tools for building long-term customer relationships. Qitaf allows customers
to earn points on every purchase, which they can redeem for rewards,
discounts, or exclusive offers.
 Loyalty Program Communication: STC regularly communicates
with Qitaf members through personalized emails, SMS messages,
and app notifications.
 Targeted Promotions and Exclusive Offers: STC tailors offers
based on customer behavior, such as additional data packages for
heavy mobile users or entertainment bundles for streaming
enthusiasts.
 Seasonal and Festive Offers: During peak times, such as Ramadan
or national holidays, STC offers exclusive rewards and discounts to
Qitaf members.
By leveraging the Qitaf program, STC fosters loyalty and enhances
customer retention, which are key to maintaining its competitive edge in the
market.
5. Partnership Marketing
STC frequently partners with other companies to enhance its service
offerings and appeal to a broader audience. These partnerships include
content providers, device manufacturers, and digital payment platforms,
providing customers with bundled services or exclusive access.

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  Content Partnerships: Collaborations with streaming platforms like
Netflix, Shahid, and Amazon Prime Video allow STC to offer
exclusive streaming bundles as part of its broadband and mobile data
packages.
 Device Bundles with Manufacturers: STC partners with leading
device manufacturers, including Apple and Samsung, to offer device
bundles with exclusive data packages.
 Cross-Promotions with Retail and Financial Institutions: STC
also collaborates with retail and financial partners, allowing Qitaf
members to redeem points at partner locations or providing special
offers for STC Pay users.
Partnership marketing is highly effective in adding value to STC’s offerings
and enhancing its appeal to customers through exclusive content and
device options.
6. Corporate Social Responsibility (CSR) Communication
STC actively communicates its CSR initiatives, emphasizing its role in
contributing to the community and supporting Saudi Vision 2030. These
initiatives build a positive brand image and resonate with consumers who
value corporate responsibility.
 Environmental Initiatives: STC’s environmental efforts, such as
energy-efficient practices and waste reduction, are communicated
through social media and corporate announcements.
 Educational Programs: STC invests in digital literacy programs,
coding camps, and other educational initiatives to promote
technology skills among Saudi youth.
 Health and Safety Campaigns: STC has also supported health
campaigns, particularly during the COVID-19 pandemic, by offering
free data for educational platforms and remote work support.
CSR communication highlights STC’s alignment with Saudi Vision 2030
and enhances its reputation as a socially responsible company.

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Conclusion
In summary, STC (Saudi Telecom Company) has established itself as
a prominent telecommunications provider in Saudi Arabia, leading the
market through innovative products, strategic pricing, diversified
distribution, and dynamic marketing communications. This report examined
the company’s external environment, segmentation strategies, and its
approach to product development, pricing, and distribution, along with its
multifaceted marketing communication efforts. Each component of STC’s
strategy is designed to align with its overarching goal of driving customer
engagement, brand loyalty, and market leadership within a highly
competitive industry.
STC’s environmental analysis demonstrated how it effectively navigates the
opportunities and challenges presented by technological advancement,
shifting customer expectations, regulatory requirements, and evolving
market competition. By focusing on a customer-centric approach in a
rapidly digitalizing market, STC has been able to anticipate changes in
consumer behavior and adjust its strategies accordingly. Its segmentation
approach is rooted in a deep understanding of distinct customer needs,
allowing the company to cater to diverse market segments, from individual
consumers to large corporate clients and government agencies.
The company’s product strategy, particularly its investments in 5G
technology and digital services, reinforces its commitment to innovation,
while its flexible pricing strategy accommodates a wide range of consumers
and builds loyalty. Meanwhile, STC’s distribution strategy capitalizes on a
well-rounded network of physical stores, online channels, and third-party
partnerships, ensuring accessibility across Saudi Arabia.
In terms of marketing communication, STC employs a blend of digital
marketing, traditional media, partnership marketing, loyalty programs, and
CSR communication to foster strong customer connections and maintain
brand relevance. By embracing multiple communication channels and
strategies, STC succeeds in reaching diverse audiences, enhancing its
reputation, and reinforcing its leadership in the industry.
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As STC continues to evolve, its comprehensive, customer-focused
strategies ensure that it is well-positioned to maintain its market
dominance, contribute to the national digital transformation, and support
the Saudi Vision 2030 agenda. Through these efforts, STC demonstrates a
strong commitment to its customers, its country, and its role as an innovator
in the telecommunications sector.

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