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Brand Management Brand Audit: Telenor djuice

1.1

Name1

At the release of the teasers of this new value added service, there was a lot of confusion about the name in the minds of the potential and current consumers. In reality, the idea behind the Internet portal djuice is to encourage users to make it their primary portal for wireless devices such as mobile phones with WAP readers and PDAs (Personal Digital Assistants). The site www.djuice.com contains a number of functions such as an advanced search engine, calendar, e-mail and message services, logos and ring tones. The solution is completely open, enabling users to access any web address. Users from operators other than Telenor can freely use the service. Djuice is a registered trademark, which Telenor aims to establish as a strong Nordic, European and Asia brand name. Telenor wishes to form alliances to develop a network of partners for the djuice portal aimed at giving the alliance partners the advantages of common platforms and functionality and making a coordinated effort to build a strong brand name. Djuice has been spun off as a separate company, wholly owned by Telenor Mobil AS. When new transmission technology such as GPRS and UMTS open up a number of more advanced services over portable terminals, djuice has ambitions of becoming the preferred gateway in an international market. In order to benefit from djuice.com, a user needs a WAP-compatible mobile phone or PDA. WAP is a standard protocol that enables mobile phone users to access basic Internet services with the aid of several different menus and directories. At the www.djuice.com website users can personalize their WAP-page with their own links and communications services. The WAP version of this page is set up as the home page on the WAP phone. This makes using the WAP phone much simpler and faster.

1.2

Logo

Light blue signifies calmness and serenity

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Brand Management Brand Audit: Telenor djuice

Purplish blue denotes royalty and power

The element of power and energy is very much visible in the adverts of djuice, which are very lively and dynamic while calmness may not be visible in any of the marketing activities. Yet, it can be assumed that this light blue color refers to its capacity to be composed and maintaining a balanced personality.

1.3

Slogan

U R Welcome! A very warm, pleasant and affectionate note which calls for attention and consideration.

1.4

Style

As already elaborate d in the personality statement, the following attributes can be used to signify the style of djuice: Fresh Easy going Modern Young at heart Enthusiastic Chic

1.5

Advertising

The advertising and marketing campaign of Djuice followed the same pattern of creating intrigue and hype amongst the Pakistani population that was used for the commencement of Telenor operations in Pakistan. Going back when Telenor was launched, there were many teasers on TV showing a car traveling all the way from Europe to Pakistan. Later on it focused on a widespread marketing strategy entailing easy pricing and customer focus.

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Brand Management Brand Audit: Telenor djuice

Similarly, at the launch of djuice, there were various teasers in the major newspapers of the country including Dawn, the News, and Jang Urdu to create a sense of awareness amongst the consumers. On their initial launch they hung road side banners in all the major cities of Pakistan (Karachi, Lahore, Islamabad).the teasers were of following statements: Save your eyes for djuice! Save your breadth for djuice! Save your thumbs for djuice! But since the consumers are not technically literate, because of the name most perceived it as an energy drink or the like .Yet; nearly everyone knewan energy drink company would not spend so much on advertising and promotion. Thus the massive initial advertisements in the newspapers kept the curiosity level high and the entire population wanted to know the reality soon. As a consequence, the final revelation of it being a Telenors prepaid connection was met with utmost shock and surprise. But the exciting new offer for the youth2 with many value added services were highlighted in the later adverts including,the facility of easy load and simple pricing without any hidden charges. Besides these adverts have been very unique, innovative and reemphasized the target audience.

1.6

Promotion

In order to encourage consumers to buy this new deal while penetrating in the competitive market , Telenor djuice came up with following promotions: @Rs.200 worth of free balance with every new Djuice Recharge Rs. 100 and get an extra balance of Rs.100 Free MMS for 1month

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Brand Management Brand Audit: Telenor djuice

Adverts

2.0 MARKET SEGMENTS


A Market segment is defined as a geographic, demographic or other customer classification targeted by an organization for the purchase and use of its products and services.Market segmentation is the process of grouping a market into smaller subgroups. This is not something that is arbitrarily imposed on society: it is derived from the recognition that the total market is often made up of submarkets (called segments). These segments are homogeneous within (i.e. people in the segment are similar to each other in their attitudes about certain variables).

2.1 Market Size


Whatever the dollar number for projected investment, Pakistans market potential is huge as its population is nearing 150 million. It has a growing middle class. After the advent of wireless communication the teledensity has reached over 17% and is expected top grow to around 30 % by the end of next year. The exponential growth in the cellular subscriber base during the last couple of years is a combination of many factors which among other things include sound government policies, deregulation of the market, the effective role of the ministry of IT and Telecom and efficient regulatory framework by PTA.

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Brand Management Brand Audit: Telenor djuice

The cellular operations are going to continue facilitating subscribers through acquisition subsidies, widespread distribution, retention campaigns, aiming aggressively at increasing their subscriber market share and driving business through volumes.Mubashir Naqvi, VP (Commercial)Ufone.All these factors have made it possible for Pakistanto be included in the top five fastest expanding cellular markets in the world. The telecom sector has generated great economic activity over the past few years which has resulted in the creation of many jobs. Inthis regard the government should be given due credit. The following chart tells us about the market total number of subscribers of various mobile phone operators. Leading the list is Mobilink with a total of 14,067,919 subscribers followed by Ufone , Warid and Telenor. The size of this segment is pretty large as our youth is growing very rapidly, and it is the fastest growing segment for the mobile phone industry. Furthermore these are the people who are accustomed to using technology and are not averse of it. As it is a one time product frequency of purchase is not there as people who purchase once are likely to stick with it and not purchase afterwards unless they are switching brands. Frequency of purchase is high if we consider the purchase to be of value added services like ring tones, MMS or mobile phone cards. This is because this segment is into fun and games and likes to message a lot and talk a lot among friends and family resulting in a higher purchase of cards and value added services. In that regard we feel that the segment can easily support the number of suppliers serving it which at the moment include Jazz Octane, Djuice(Telenor), Warid, Ufone, Mobilink and Paktel.

Figure 1.0Cellular Subscribers March 20063

www.pta.gov.pk

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Brand Management Brand Audit: Telenor djuice

16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Instaphone Paktel Telenor Warid Ufone Mobilink

Since the focus of djuice is primarily the young generation of the population, the skewed population pyramid of Pakistan supports the idea. Pakistan today has one of the youngest populations in the world. We know our young customers have different needs, preferences, lifestyle and mobile behavior, all of which require a unique approach and offering. We have designed djuice to match that a 100%."_____ Djuice project manager Amina Sohail As of 30 September2006,Telenor hopes to have over 125,000 unique users of the djuice portal. So far the users may be labeled technological innovators. The average age is expected to rise as more and broader services become available via WAP.

2.2 Market Trends


For years, Pakistan's telecom sector has plodded along, seemingly stuck in the mid-20th century. From 2.1 phones per 100 Pakistanis in 1999, the number of fixed lines has crept up to just 2.9 per 100 today. And while cellular has been more dynamic, only about 5% of Pakistanis have cell phones. The government is taking Pakistan's telecom future seriously and has deregulated the sector. As a consequence, many new private entrants have geared up to provide service, and since June cellular subscriptions have shot up by 56%, to 7 million -- making Pakistan one of the fastest-growing cellular markets.

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Brand Management Brand Audit: Telenor djuice

There was a huge space available for the mobile phone operators to improve their quality of service as the future competition in the sector would largely thrive on the top-quality service and customer care. We have seen in recent weeks a kind of price war but at some point the players would need to be sensible enough not to spill the blood and instead promote a healthy competition with focus on the quality of service and provision of innovative products ___ Minister for Information Technology Awais Ahmad Khan Leghari4 Pakistan has currently 7 cellular operators providing mobile communication .Mobilink which was the first ever GSM provider started its operations 10 years ago and still is stuck on GSM and has the largest network .Mobilink has invested up till now $750MN on its network expansion and customer subscription base. It has 63% of the market share. (The total cellular subscriber base is around 6.5 million users).5 Pakistan government has deregulated the telecom sector and projects private investment of $15 billion. The World Bank, meanwhile, estimates investments amounting to $8 to $10 billion are expected after the deregulation of the telecom sector in Pakistan.6 Abu Dhabi Consortiums Warid Telecom and Norways Telenor Mobile Communications are the latest entry into Pakistans telecom market. Pakistan had been a highly regulated market in the past but now after the change in government policies the market has become increasingly deregulated with many new players having entered the market mainly Telenor and Warid in order to challenge the existing players Ufone, Paktel and Moblink. Customer awareness has increased and the need to stay mobile at all times yet reachable has also increased leading to an increase in the demand for mobile phone operators.

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Brand Management Brand Audit: Telenor djuice

In that sense Pakistan is an increasingly growing market. Also the increased competition has meant that the service has become more affordable and now is within the reach of many people who previously could not dream about having a mobile phone connection. Moreover the availability of cheaper mobile phone sets has also increased the mobile phone connections market in Pakistan.

In order to understand the competitive environment we will have brief overlook at the major players in the industry.

Overview of the Major Players in the Cellular Service Provider Sector of Pakistan

Mobilink
It started as a joint venture of IWC, Motorola and Saif Group in 1994 with GSM digital technology. Foreign partners later sold out and now Mobilink is a subsidiary of Orascom. It is the current market leader with 56% market share.

Mobilink is a subsidiary of Orascom Telecom which is the market leader in providing state-ofthe-art communication solutions. Mobilink has been the only company to work on 100% GSM technology since its inception.Mobilink GSM started operations in the year 1994, from then on it has shown enormous growth. At the time when it entered the market it was a small player in the cellular market of Pakistan it is now the market leader both in terms of growth as well as having the largest subscriber base in Pakistan.During the last five years, Mobilink has set up one of the largest cellular networks in the country. Currently, they are covering more than 300 cities and towns. This has involved an investment in the company of more than US$ 150

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Brand Management Brand Audit: Telenor djuice

million. Currently they have 5 Switches and have plan to a number of cell sites in the next two years.

Paktel
Paktel received its license in 1991 and started out as the first cellular firm in Pakistan with AMPS analog technology. It was a joint venture between Cable & Wireless and Hassan Associates. C&W later sold out due to losses in operations and network closures in Karachi. Paktel was taken over by Millicom, which also controls Instaphone. Paktel has a 9% market share. Paktel is the pioneer cellular phone operator in Pakistan. It started its operations in April 1990. It was launched by Hassan Associates (Private) Limited Karachi in association with Cable & Wireless of United Kingdom. C&W is one of the biggest cellular service providers in the world with operations in more than 55 countries. The company is operation in three regions in Pakistan categorized as North, Central and South. Though Paktel was the one that brought revolution to the telecom sector in Pakistan but it failed to keep pace with the technological changes and was left behind in the race. It used to operate on AMPS or analog system. With the advent of GSM technology, Paktel failed to switch to it in time. It launched GSM services in the end of 2004. Currently GSM services are available in almost 50 cities of Pakistan.

Instaphone
It received its license in 1991 and started with AMPS service later converted to digital TDMA technology. It is a subsidiary of Millicom and has a current 16% market share. It had a large footprint in Karachi and suffered losses due to networks shutdowns in Karachi. Instaphone (Pakcom Ltd.) is a subsidiary of Millicom International Cellular (MIS) S.A., based in Luxembourg. MIC S.A. was the second cellular operator to start its operations in Pakistan. Their transaction from AMPS to TDMA technology ensures customer access to real digital benefits. Instaphone was the first to launch Caller Party Pays (free incoming regime) in Pakistan, long before it was officially launched in Pakistan. This step enhanced the cellular phone accessibility to all market segments. It is currently providing services in more than 200 cities of Pakistan.

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Brand Management Brand Audit: Telenor djuice

Ufone
Ufone started its services in year 2000 as a subsidiary of PTCL. Ufone has a GSM technology and it has also added higher data capabilities with GPRS technology. Ufone has captured a 19% market share in the last four years.U-fone launched its operations in year 2001. It is a subsidiary of PTCL and the only local company providing cellular services. Within 6 years of it presence in the market, it has come a long way. It has attained the second highest market share, only behind Mobilink. Its a great achievement keeping in view that it is a relatively young player as compared to Paktel and Instaphone which have not been to do this in years. It is arranged on the latest GSM latest technology from the beginning. Ufone has physical infrastructure presence in around 73 cities and provides services to the adjoining areas. All significant cities and major highways are covered by Ufone. Ufone has attained a favorable image in the eyes of its customer by keeping it promise of last to enter but first to venture. By launching GPRS, internet and e-commerce services it has allowed its users to browse, chat or take there office anywhere they want. This has made Ufone stand out of the crowd. Not only this they were the first one to launch e-billing, pocket stock and latest being MMS.

Warid
Warid is the latest entrant in the telecom sector of Pakistan. Warid has been launched by Abu Dhabi Consortium of UAE. Warid is an Arabic word meaning an Oasis in the middle of a desert. It is pronounced as Waa-rid. The meaning of its name directly depicts aim of the company to capture acentral position in Pakistan. Warid is the hub of telecommunication in Pakistan. It is backed by the Abu Dhabi Consortium of Sheikh Nahayan Mabarak Al Nahayan. The Abu Dhabi Consortium, who has other successful investments in Pakistan, namely Bank Alfalah and United Bank Limited, was interested in investing in other booming segments of the economy lie Telecom. Warid Telecom cherishes their team, vision, shareholders and associated companies. As part of its business strategy, Warid Telecom plans to establish itself as a leader, and increase the overall market size through broader coverage of all income groups due to its affordability. Warid Telecom's superior products, high quality of service, and customer
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Brand Management Brand Audit: Telenor djuice

support will enable it to not only capture market share from existing players, but also acquire the so far untapped market.Warid Telecom's vision is "To be the leading national communication provider with a strong international presence.7

Figure 2.1 Key Players of Telecommunication Industry (with year of entry in the market)8

Waridtel.com, May 2006 Source: http://www.telenor.com/ir/presentations/pakistan/telenor_pakistan_2005.pdf

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Brand Management Brand Audit: Telenor djuice

Eras of Telecom Industry in Pakistan


The mobile and telecom industry can be divided into three major eras where it got major transitions. They could be named as follows; I. Amps era (1990-1994) II. GSM vs. Amps era (1994-2001) III. Current GSM mobile technology war (2001-2006)

Industry Analysis

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Brand Management Brand Audit: Telenor djuice

Fig 2.2 GENERIC MICHAEL PORTERS FIVE COMPETITIVE FORCES Telecom Industry
Threat of New Entrants For the cellular industry here in Pakistan as we all can see very evidently the current state of affairs is very vulnerable, the arrival of Al-Warid and Telenor in the cellular service industry and the privatization of PTCL has created a stir in the market and seems like a lot is going on at the time New entrantsusually bring new capacity and competition for customers and resources. This is a threat to existing businesses in the industry. The threat of entry depends on presence of entry barriers. Entry barriers make it difficult for another business to enter the industry. Examples of these barriers include economics of scale and capital requirements. For the cellular industry in Pakistan the threat of new entrants has been low in the past. During the 1990s era government regulations did not support investors to come in and invest in Pakistan. The country on its own did not have major players that could come up and install their setup to provide cellular service. The setup costs involved are very high as this is an investment intensive business. The cost of setting up exchanges, switching houses and other technology is soaring. The high investment requirement has lifted the entry barriers to a high level.

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Brand Management Brand Audit: Telenor djuice

But the trends are changing on the policy side. Now the government has adopted an investorfriendly policy and it is inviting foreign companies to invest in Pakistan, being projected as the land of opportunities. The idea is to have big companies, who have capital to invest, come to Pakistan and extend their services to the local market. The result of these efforts was very fruitful and we have seen 2 new licenses being issued to Telenor and Alwarid. Ever since they came in the market is in a stir and all activities have picked up pace. So now the threat has been increased a bit. With these two companies competition has become even more rigorous. So we can expect even more companies coming in Pakistan during the next few years. So the sector no longer is protected from international competition. So we can say that the threat, though not very high, is not even low. It has attained a medium level, if we have to rank it. Threat of Substitutes Substitute products are products that appear to be different but can satisfy the same need as another product. When switching costs are low, substitutes can place a price ceiling on products. If we look at the telecom sector, all communication providers will be a substitute for cellular service. In this regard PTCL phones, calling cards, telephone booths, PCOs etc. all are a substitute to mobile phones. The real thing is the driving power of these substitutes available in the market. However, there presence is enough to crate the competition as it gives the consumer more options. The users of PTCL land line facilities together with other facility users is more than mobile users. But the growth in cellular industry is very high providing a ray of optimism to the players. Bargaining Power of Suppliers Bargaining power of suppliersaffects their ability to raise prices. Suppliers are likely to be powerful if they are few in number, each individual purchase represents only a small amount of the companys sales, there are not good substitutes of the product purchased, and the product or service is unique. The power of suppliers tends to be a reversal of the power of buyers. The power is high where the switching costs are high, where the brand is powerful, there is a possibility of the supplier integrating forward, customers are fragmented (not in clusters)
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Brand Management Brand Audit: Telenor djuice

so that they have little bargaining power. The suppliers in this case would be the companies that are providing the technological support for example Ericsson, Alcatel, Siemens, Motorola etc. These companies have high repute in research and development and are considered an expert in their field. Thus the service providers are dependant on them to get the best and cutting edge technology that can help them differentiate their services from the competition. Technology is the backbone of cellular services. Their business is all dependant on technology; a failure can mean extinction, and this no one wants. That is why they have little negotiating power with the in terms of investment magnitude. These service providers have, however, a high power on the service customization side. These technology firms provide customized services the cellular sector players based on their needs and preferences. Overall we can say that the bargaining power of the suppliers is neither high nor low, but somewhat in the middle. Bargaining Power of Buyers Bargaining power of buyers affects the industry through their ability to force down prices, bargain for higher quality or more services, and play competitors against each other. Buyers are likely to have power if a buyer purchases a large part of the sellers product, if alternative suppliers are plentiful because the product in undifferentiated, if the buyers earns low profits and is sensitive to cost differences, and if the purchased product is unimportant to the final quality or price of a buyer's product. With the growth of cellular industry the less income groups have also been included in the target market as the service has been available to all. Buyers are thus price sensitive as these middle income groups, forming major chunk of subscriber base, are highly price sensitive. All the marketing strategies are now customer driven, as to what the customer demands. If the company feels that its not attaining its growth targets, it implies that not many potential customers are either ready to use the service at all or at the prevailing price. Thus the company had to offer a price cut. Similar is the case with cellular service providers. Since recently they have been fighting for potential market share on the basis of price and to augment it marketing the services aspect. Thus we can say that the bargaining power of buyers is not that
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Brand Management Brand Audit: Telenor djuice

explicitly but implicitly they are the driving force for the changes in strategies of the cellular service providers. Rivalry among Existing Firms Rivalry among existing firms is the amount of direct competition in an industry. Industries that have intense competition are characterized by competitors that are roughly equal in size, slow rates of industry growth, the production of commodities, high fixed costs, and high exit barriers arising from investments in specialized equipment. The cellular industry has shown healthy growth during recent past and so has the competition among the service providers. The different service providers have seen the element of growth in industry and to boost their market share they are fighting hard for it. The media war has intensified in the recent past. This was not the case in the past. All the companies are projecting themselves are the most affordable, most economical and the best. Due to this fact we have seen many price cuts in the case of new connections, air time etc. The promotional activities undertaken by the companies have become more frequent. Now we can see the bill boards, newspaper ads and electronic media advertising etc. every now and then. Sponsorship activities have also increased. Such activities are meant to create a favorable image of the company and to become the most likable brand among the customers. Thus we can say that the rivalry among the players in the cellular service sector is high.

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Brand Management Brand Audit: Telenor djuice

Fig 2.3 Porters Five Forces Model of the Telecom Industry


Bargaining Power of Suppliers Technological support for example Ericsson, Alcatel, Siemens, Motorola etc. High power on the service customization side.

Threat of Substitutes PTCL phones Calling cards Telephone booths, PCOs

Rivalry among Existing Firms Hyper-competition Price cuts Sponsorships Advertising Value added services

Threat of new Entrants High set up costs Deregulation :investor friendly International entrants

Bargaining Power of Buyers Price sensitive Favor marketing & promotional gimmicks

Djuice and the Competitive Environment

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Brand Management Brand Audit: Telenor djuice

As has already been mentioned previously the target market of Djuice which comprises of youngsters has also increased and it has meant that the demand fore Djuice will also increase in the future. People are these days looking for cheaper connections and Djuice fits the bill perfectly. The customers of Djuice mainly belong to the urban areas of Pakistan and are not that diversified, in that sense Djuice should target the urban centers only. The main threat that Djuice faces is from Jazz Octane which is also offering very cheap sms rates and call rates to Mobilink customers and is a major threat because the reach of Mobilink is more and there are more users of Mobilink in the market. Jazz Octane is also targeting the young at heart market who want value for their money and like to communicate a lot with family and friends. The other mobile phone operators Warid, Paktel and Ufone are also a threat, especially Ufone with its emphasis on the youth but they are less innovative and a smaller threat than Jazz Octane.

2.3 Location
Djuice has an international presence in more than 15 countries and has a worldwide customer base of about 8 million consumers.9In all the countries where Djuice is present it is marketed by the name Djuice itself although the color scheme of Djuice differs in some countries. In Pakistan it is navy blue and light blue in color whereas in Bangladesh it has a red tone. In terms of the brand personality across international markets, it is the same as Djuice targets the youth the world over with the same kind of promotion and brand personality. Djuice is basically marketed by Telenor using its various franchised stores across the country.

2.4 Buying Practices


Basically the product Djuice is purchased generally from specialized Telenor franchised outlets although it can also be purchased through Music shops, departmental stores etc. People like to buy their connections as form of a package which includes pre paid balance plus

www.Djuice.com

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Brand Management Brand Audit: Telenor djuice

a chip for a specified amount of money.

2.5 Customer Profiles


The average customer of Djuice is between the age group of 15 to 35 years. He is outgoing, likes to interact with friends and is generally on the move. He has limited amount of money to spend and likes to have fun. He is influenced by what his friends do and for him peer pressure is very important. His decisions are made upon recommendations by friends or through the media. Customers of Djuice like to live life in the present but at the same time they are ambitious and strive for their goals. They are fun loving and easy going and talking on the mobile is a form of self expression for them.

Fig 2.4 AIOD Framework for Djuice


BENEFITS ACTIVITIES INTERESTS OPINIONS DEMOGRAPHICS

Social Acceptability

Business Professionals Managers Students

Sports Community Social Gatherings Entertainment Lovers Sports, Food, Media, Entertainment , Recreation

Energetic Self Actualizatio n Peer Pressure Ambitious, Energetic, Education Themselves

16-45 yrs Single, Newly Married, Full Nest. Light-to-Medium

Superiority in Quality

Businessmen, Working professionals, executives

35- 55 yrs old, Married, full nest, I, II, III, Light-to-Medium

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Brand Management Brand Audit: Telenor djuice

Extensive geographical Coverage

Business Professionals Managers Sportsmen Students Business Professionals Corporate Executives Managers Sportsmen Young students, Working Professional, Upper Class Business, Working professionals, Corporate Executives

Functionality

Value added features

Connectivity

Customer Service

Professional, Business Corporate executives, Work, Home

Sports Community Social Gatherings Entertainment Lovers Sports Community Social Gatherings Entertainment Lovers Status Conscious, Family, Entertainment , Adventurous Status Conscious, Ambitious, Social Gatherings Technological Trends Society, Culture, Strong Opinions

Strong Views about Products Group Association Education Ambitions Current issues

15-45 yrs Single, Newly Married, Full Nest. I, II, III

22-40 yrs Single, Newly Married, Full Nest, I, II, III, Light-to-Heavy

Politics, Society Social Issues Culture, Planned Purchase, Future Business & Social Issues Health, Society, Culture, Strong Opinions

15- 55 yrs old, Married, full nest, I, II, III, Light-to-Heavy

24- 55 yrs old Married, full nest, I, II, III, Light-to-Heavy

All Age Groups, Single, Newly married, Full nest, I, II, III Medium-to-Heavy

2.6 Competitiveness in the Industry


DAveni describes hyper-competition as: Market stability is threatened by short product life cycles, short product design cycles, new technologies, frequent entry by unexpected outsiders, repositioning by incumbents, and tactical redefinitions of market boundaries as diverse industries emerge.10 The telecom industry of Pakistan is undergoing a hypercompetitive stage where there have been big confusion and disorders in the last few years. Many players are fighting for market

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Business Policy,

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Brand Management Brand Audit: Telenor djuice

shares and survival and success. Currently the, 7 cellular operators providing mobile communication in Pakistan are experiencing price wars and finding new ways to not only to reduce costs, but also add value to the product or service being provided. With the entry of resourceful and technologically advanced global players in the Pakistani market, it is hoped the situation might change and the industry might move to a consolidated one .Efforts are also being made by these firms to enhance understanding about factors and frameworks of sustainable competitiveness. At first the mobile sector in Pakistan was such that the company not the consumer was the King they could charge very high prices and still get away with it ass the consumers did not have many options, but now with the entrance of so many players into the market the situation is changing in the favor of consumers. As a result of price wars the prices are coming down and consumers are now getting more value for their money.

2.7 Market maturity Figure 1.3 Stage in Product Life Cycle

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Telecom sector

Telenor Pakistan is moving towards the growth stage, since it has been a year that it made an entry to Pakistan market but have established themselves as being responsible. Yet still they have to develop and become stable by responding to the fast growing pace of the industry and to deal with the tough competition. In terms of the maturity of the market, the market is still in its infancy and growth stage in Pakistan. This is because Mobile phones are somewhat a new concept in Pakistan and people are just about getting to know what it is all about, The market offers huge potential in terms of new customers as and when people get more awareness, the mobile phone usage will further increase in Pakistan so we can safely say that that market in Pakistan is in its growth stage. We can say that the product Djuice is a new product in a relatively new market and therefore there is huge potential for growth as more and more people will become aware of it. In terms of educational effort required there is some required to make the customers aware of the advantages of Djuice over its competing brands.

3. 0 DIFFERENTIATORS
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Brand Management Brand Audit: Telenor djuice

3.1

First in the category ___ Value Added services

At www.djuice.com users can access information and services from the Internet such as stock market quotes, banking, news and entertainment. Electronic commerce via mobile phone, mcommerce, makes it possible to deliver a new array of mobile telephone services. WAP is only the first step on the road to content on mobile phones. New transmission technology will open up more and more areas of application for mobile terminals in the business and private markets alike. Djuice is your mobile brand because we know you are different and like to experience new things. Djuice opens doors to a world full of laughter and cheer: its hip, its groovy and its loads of fun., as Telenors management puts it. Since the target market of djuice is youth, Telenor has highlighted the key areas in the offer that would please this particular segment. "Every djuice SIM has a powerful menu that gives subscribers access to the newest tones, video clips, animated pictures, games, anonymous chat, and all sorts of insights into what's happening on the social scene. Djuice also offers a unique WAP and Web Portal where you can access and download the newest ring tones, pictures, games, and video clips to your mobile."11

Target Market: Youth

Djuice: Newest tones, video clips, animated pictures, games, anonymous chat, unique WAP and Web Portal

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djuice project manager Amina Sohail ,at the launch of djuice in Karachi on March 15,2006, http://www.telenor.com.pk/about/pressrelease.php By:

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Brand Management Brand Audit: Telenor djuice

3.2

Price

Since the target segment of djuice has primarily been the young generation, pricing is also designed with the youth in mind. You can stay in touch with your favorite people at very good rates, and enjoy an unrivaled offer on messaging. With djuice you can MMS to all operators everywhere and SMS anyone, anywhere, at unbeatable rates12The rates13are: Calls for Rs 0.99 to any two Telenor F&F numbers o To any other Telenor @ RS.2.45/min o To any other mobile or PTCL @ Rs.3.45/min SMS for only Rs 0.20 to any number in Pakistan MMS for free Free content downloads Connection pack with SIM for Rs.399

o Includes free balance of Rs.100+ The djuice Xtra + MMS offer Fig Price Comparison with Competitors
Connection Call rate Djuice Rs 1.14 to favorite Telenor numbers Rs.3.82 to other Telenor customers Rs.3.97 to all other networks Jazz Octane Rs. 0.9914 / mincalls to any 3 favorite Mobilink numbers Rs. 3.11 Onnet Rs. 4.70 landline numbers Rs.4.70 offnet Warid Rs.1.90 Friends and family On net 2.53 Offnet 3.80 Ufone Rs.2.50 On all networks: Rs. 1.50 Offpeak to Ufone: Paktel 5 paisas per second On net 3 paisas per second Offline rate Rs.3.75 Offnet call rate Rs.2.7 Offline rate

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djuice project manager Amina Sohail ,at the launch of djuice in Karachi on March 15,2006, http://www.telenor.com.pk/about/pressrelease.php 13 Advertisement ,Source:Daily Dawn Newspaper, Page 3, dated March 16,2006 14 These prices are exclusive of Taxes By:

24

Brand Management Brand Audit: Telenor djuice

Sms rate

Rs. 23 paisas per sms on all networks

Rs. 0.25 per sms On net Rs 1.50 Offnet15

SMS on net 0.63 Off Net 1.27

Rs.0.50 Sms on net: Rs. 1SMS offnet16

85 paisas Sms on net Rs.1.15 Offnet

3.3

Heritage

"Djuice is immensely popular internationally and has a following of over 8 million subscribers worldwide." 17 Telenor is one of the biggest GSM service providers in the world with over 82.7 million subscribers and operations in 17 different countries. Telenor Pakistan is 100% owned by Telenor and adds on to its operations in Asia together with Thailand, Malaysia and Bangladesh.18

Fig 3.1 PRESENCE OF TELENOR AROUND THE WORLD19

15 16

Daily deduction of Rs 1 applies Ufone prices exclusive of 15 % GST 17 Chief Marketing Officer Bjorn Taale Sandberg announced at the launch of djuice in Karachi on March 15,2006 18 http://www.telenor.com.pk/about/pressrelease.php,visitedMay 11, 2006 19 http://www.telenor.com/reports/2004/map.html, visited May February 2006 By:

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Brand Management Brand Audit: Telenor djuice

3.31 Brand owns an Attribute


In terms of djuice the element that it owns is lowest sms rates. Its rate is at Rs .20 per sms which makes it the lowest among all mobile operators.

3.32 Being the Newest


Right now djuice is the newest connection available. It was launched on 15th March 2006 which makes it the newest in the mobile phone operators industry. djuice was launched with a big bang with ads spanning over all newspapers and even in the print media. So much hype was created about djuice that people waited anxiously for it to unveil as to what djuice actually was.

3.33 Providing a market specialty


Djuice is designed for a specific market which is the youth market who are price conscious individuals. Although Jazz octane is also targeted towards this market yet the positioning of djuice is clearer and people associate djuice more with the youth.

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Brand Management Brand Audit: Telenor djuice

4. 0 BRAND POSITIONING
It is the added value or augmented elements that determine a brands positioning in the market place. Positioning can be defined as follows: Positioning is how a product appears in relation to other products in the market

4.1

Competitive positioning

4.1.1 Perceptual Maps The position of a product in comparison to its competitors can be exemplified with the assistance of a perceptual map. Perceptual Map is a graphical method that defines the market in terms of the way buyers perceive key characteristics of competing products.20 Our positioning of Djuice will be against other prepaid packages of competitors in the industry i.e. Mobilinks Octane, Ufone, Warid and Paktel..

20

www.tutor2u.com

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Brand Management Brand Audit: Telenor djuice

The dimensions on which the services will be evaluated are: Connectivity Quality of Service Value added services Price Coverage Easy reloading 4.1.1.1 Service Quality Vs Coverage

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Brand Management Brand Audit: Telenor djuice

Service quality Warid ufone

Coverage

Jazz Oc Pakte

Service Quality Jazz Octane Ufone Telenor Djuice Warid Paktel

Coverage 25 44 33 52 1 1

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Brand Management Brand Audit: Telenor djuice

Telenor although announced on May 3, 2006 that it will now offer djuice in Hyderabad, Sialkot, Quetta, Gujranwala and Peshawar. It is already available in six major cities of Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad and Multan.21 But comparing it with other competitors, Mobilink Jazz is available in cities as well as small towns. Ufone also in terms of coverage is better than Djuice although Paktel and Warid have some way to go in that respect. In terms of service quality Warid is the best followed by Ufone.

4.1.1.2. Price Vs Additional Features /Value Added Services Price Jazz Octane Ufone Telenor Djuice Warid Paktel Additional Features 5 3 1 2 4 5 4 3
1

21

Business Recorder,Thursday May 11, 2006

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Brand Management Brand Audit: Telenor djuice

Price Jazz

Pak

Additional Features ufone

Wari

Djuice has become immensely popular among the youth. Commenting on the offer, Project Manager Amina Sohail said, "Every djuice SIM has a powerful menu that gives subscribers access to the newest tones, video clips, animated pictures, games, anonymous chat, and all sorts of insight into what's happening on the social scene.22

It also offers a unique WAP and Web Portal with newest ring tones, pictures, games, and video clips. But considering the competitive scene , Mobilink Jazz and Ufone Moreover, the rates of djuice are : Calls for Rs 0.99 to any two Telenor F&F numbers and SMS for only Rs 0.20 to any number inPakistan "With lower and simpler prices on calls and SMS, we are strengthening our competitive edge. In addition we are including an extensive package containing a volume of free MMS usage, Java games and one month of free WAP usage. This package is included both on pre- and
22

Business Recorder,Thursday May 11, 2006

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Brand Management Brand Audit: Telenor djuice

postpaid subscriptions. Prepaid customers will also be offered 15 per cent extra airtime if they replenish their account via SMS or by Mobilhandel (Telenor Mobil's mobile commerce service)," Christian Andersen, head of Telenor Mobile's youth venture said.23 In terms of price we see that Jazz Octane charges the highest price , followed by Paktel, then by Ufone followed by Warid and the lowest prices for Djuice. In terms of additional features Ufone is the best followed by Djuice. Mobilink Octane also offers value added services but at a slightly higher price, .

4.1.1.3. Connectivity Vs Easy reloading

Connectivity Mobilink Octane 12 Ufone 3 3 Telenor Djuice 4 23 Warid 5 http://press.telenor.com/PR/200306/908030_5.html Paktel 2 1


By:

Easy Reloading

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Brand Management Brand Audit: Telenor djuice

Connectivity Warid

ufone

Easy Reloading

Pak

Jazz

Warid is first in connectivity followed by Djuice, then Ufone , Paktel and then Mobilink. In terms of easy re loading Telenor Djuice is the best followed by Warid.

4.1.2 Positioning Statementsforthe major players Djuice

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Brand Management Brand Audit: Telenor djuice

Enjoy digital Juice: a mobile internet connection, a world that will get you hip with the groove and fun! A place full of wit and smirks: a place where strangers become friends and friends turn into best mates Offering lower call and sms rates, with a lot of value added features in order to satisfy your connectivity needs, specially targeted towards youngsters Ufone

A connection that provides the largest range of value added features at lower costs, providing excellent connectivity and single pricing so that there is no confusion only solutions coupled with excellent coverage. Jazz Octane

Coming from the largest cellular company in Pakistan , octane combines fun with value, specially targeted towards the young at heart people, offering lower rates to three favorite numbers and lower sms rates, now you can easily be part of the largest network in Pakistan offering the widest coverage. Warid Offering convenience and clear cut pricing with no hassles. Communicate within the Warid family at lower rates, a service that provides easy commutation facilities in order to communicate with friends and family. Paktel

Coming from the first mobile phone company in Pakistan Paktel offers lower prices within its network with acceptable coverage and connectivity to help you stay in touch with others whenever required.

5.0 METRICS
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Brand Management Brand Audit: Telenor djuice

5.1 Impact 5.1.1 Market Share


Considering the perceptual maps that we have drawn above, we are now in a position to calculate market shares of the players in the industry and this defines for us the relative position of the company in the market. Market Share Table: -

Attributes djuice Coverage Quality of service Price Value added services Connectivity Easy reloading

3 3 1 4 4 5

Rating Scale Octane Ufone 5 4 2 5 2 1 2 5 3 3 4 3

Warid 2 5 2 3 5 4

Paktel 1 1 4 1 2 1

W.I W.I 0.16 0.16 0.16 0.16 0.16 0.16 Total

djuice 0.48 0.48 0.16 0.64 0.64 0.8 3.2

Octane 0.8 0.32 0.8 0.32 0.16 0.32 2.72

Ufone 0.64 0.64 0.48 0.8 0.48 0.48 3.52

Total Warid 0.32 0.8 0.32 0.48 0.8 0.64 3.36

Paktel 0.16 0.16 0.64 0.16 0.32 0.16 1.6

Based on the above calculations the following market share is owned by each competitor:
Djuice 3.2% Octane 2.72% Ufone Warid Paktel 3.52% 3.36 % 1.6%

From the above we can see that Djuice has a total of 3.2 % of the market share, in comparison from its competitors.

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Brand Management Brand Audit: Telenor djuice

Telenor is a Question mark at the moment since industry is at the climax of its growth stage in Pakistan and the deregulation has completely changed the scenario and offers an ideal setting for investment. In view of the fact that Telenor has been one of the last companies to enter the scene, it still needs time to develop itself and thus is in the Question mark column. Ufone is in the Star category, this is due to its highest market share among all the competing brands and its largest customer base if we include Octane and Djuice. The industry is in its high growth phase and also due to the high market share that Ufone has it is a star. But Ufone is facing tough competition from the likes of Djuice , Warid etc and will have to guard its position strongly. Another reason for this Star position of Ufone is that it has been a while since Ufone entered the market and that is why it has been able to make a strong position in the market.

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Brand Management Brand Audit: Telenor djuice

Warid is also in the star category primarily due to the fact that it has a higher market share in comparison to Jazz octane and Djuice and Paktel. Warid has been able to firmly place itself in the market although it has been a late entrant due to its clear cut pricing and low on net prices. Warid has been able to fully understand the usage pattern of Pakistanis. Recently Warid telecom has launched a reward program to celebrate its success with its customers which will lead to a further increase in their market share. In the words of Naveed Saeed General Manager marketing and Sales Warid TelecomWe, at Warid Telecom, care about our customers and believe in sharing our success with them Jazz Octane is in the Problem Child category with a low market share and a high market growth rate. This is despite the fact that jazz octane is backed by the biggest cellular network of Pakistan which is Mobilink Jazz Octane like Djuice is targeted towards the youth and with an increase in the use of mobile phones among the youth Jazz Octane hopes to increase its market share. At the launch of Octane the director marketing Bilal Munir Shiekh stated:With the launch of this package Mobilink continues to maintain its status as the market leader by being the first cellular service to recognize and address the diverse needs of the youth segment in the cellular industry" Paktel Gsm is also in the problem child category but in comparison to others its market share is lower. Paktel was basically launched in Pakistan on the Amps network but now is on GSM. Paktel has not been able to offer much to its customers and that is the reason for its low market share. People at times have problems with the connectivity of Paktel and also its rates are not low enough. In the words of a former user of Paktel Paktel is not as hip a service as one wants. It does not offer much value added services and on top of that has connectivity problems as well

5.1 .2 Price Premium


Right now the price premium for Djuice is negative as it is service competing on price only and it cannot command a price premium over its rivals. The only player in the industry which is commanding a price premium is Mobilink with expensive call rates and high prices for its value added services.
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Brand Management Brand Audit: Telenor djuice

As the industry generally is competing on prices the only option for Djuice to command a price premium is when it has established itself in the market and even then it can only increase the rates of its value added services like for example at the moment its mms is for free, later on as it is established it can charge a price for its mms service.

5.1.3 Customer Life Value


In terms of customer life value we see that the value is high as they are targeting the youth and in that way the youth can become long term customer of the brand. They might later switch to Telenor prepaid or postpaid connections.

5.2 Image 5.2.1Awareness


In terms of awareness, Djuice has been able to carve a niche for itself. Potential customers have been made aware of the brand through advertisements etc.Djuice began advertising much before its launch; there were teaser ads in the newspapers in which people had to guess what Djuice actually is. This was a very extensive campaign with ads appearing in all major newspapers of Pakistanincluding the News, Jang, Dawn , daily Times etc. These ads were quarter paged or full page ads. This created a lot of hype for Djuice in the minds of the prospective consumers. After it was revealed what Djuice was again full paged and quarter paged ads flooded the newspapers and also many TV ads were there, some showed a person talking continuouslywhile others showed people messaging continuously. All these efforts mean that the brand awareness for Djuice is high.

5.2.2Recognition
In this aspect Djuice scores high due to its massive advertisement campaign that it has recently undertook. Recognition is high even among those which are not part of the target market. Recognition is also high because its advertisements stress upon the Djuice brand name and

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Brand Management Brand Audit: Telenor djuice

logo. The massive ad campaign on TV as well as in the print media means that most people can recognize Djuice.

5.2.3Relevance
Relevance right now for Djuice is high as it is according to the tastes and wishes of its target segment which are the youngsters. They want something hip and cool at affordable prices which fulfills their communication and entertainment needs, in that regard Djuice fits the bill perfectly. This service is meaningful for the target market as it is affordable and satisfies the requirements of the youth better than the competition. For example its lowest sms rates go with the trend of youngsters to message a lot and also its mms service is free for a limited time period which also helps the youngsters in sharing their pictures etc. All in all the relevance for Djuice is pretty high.

5.2.4Preference
When it comes to preference youngsters will prefer this service over others as it offers lowest SMS rates and lower call rates. As the market matures and more people are convinced about the benefits of Djuice the preference for Djuice will rise. For the preference to increase it is necessary that Djuice is part of the evoked set of customers and for that the recall of Djuice has to be high. Also for the preference to increase it is necessary that Djuice is able to provide more value to its customers in the form of more value added services and lower rates. Also Djuice needs to understand what determines the purchase behavior in its target market and vary its services accordingly.

5.3 Brand Equity 5.3.1Loyalty


Djuice is new so the element of Brand loyalty does not apply here so much. As the brand will mature only then we can analyze whether customers are brand loyal to Djuice or not. Secondly the scenario in Pakistan in the mobile phone industry is such that there isnt too much
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Brand Management Brand Audit: Telenor djuice

loyalty for any service provider, except Mobilink which has some loyalty due to its established brand name. Some of the aspects which Djuice will have to consider if it wants to increase its loyalty is to offer additional coverage and consistent service to its customers. Brand loyalty can also be increase if Djuice or Telenor indulge in social benefit areas like associating themselves with a charity school for a hospital. But the foremost thing that Djuice needs to keep in mind is that its service should be consistent and customers should not be disappointed with its service and although the connectivity of Djuice is better than some other networks yet it has scope to increase its connectivity which will further lead to establishing its brand loyalty. The target segment of Djuice is such that they dont mind shifting their mobile phone connections and for that reason Djuice will have to constantly provide value to these customers and in the process gain more customers as well.

5.3.2 Perceived Quality


If we consider the fact that djuice comes from the Telenor family we see that the perceived quality for djuice is high, as people associate international standards with djuice. If we consider in terms of loyalty the loyalty is low at the moment so that would mean that some consumers are still not fully satisfied about the quality of djuice as their perception is just developing but in terms of being an international brand its perceived quality is high.

5.3.3 Brand Associations


Right now in Pakistan djuice does not have any associations but considering its target market there is a huge opportunity for djuice top associate themselves with a celebrity or concerts etc. Mobilink has strings associated with it for Mobilink World and Mobilink also has Iman Ali associated with it. As the target market of djuice are youngsters djuice can associate with a cricket star or a pop star like say Faakhir or Atif Aslam. Also Pakistan is a country where is there is a need for more charity by people and a organizations alike. djuice can make a hospital or a theme park which can increase its

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Brand Management Brand Audit: Telenor djuice

recognition and name awareness.djuice can also associate itself with a major cricketing event or sponsor the Pakistani cricket team.

5.3.4 Other Proprietary Assets


In terms of the distribution or coverage of djuice and Telenor, Telenor has signed an exclusive agreement with Siemens Pakistan and Nokia Pakistanto build their infrastructure.Nokia have signed a three-year deal to build and operate a GSM / GPRS / EDGE network to cover the central and Northern Punjab region (phase one), centered around Lahore Siemens have signed a deal to build a GSM / GPRS / EDGE network to cover the southern areas of Pakistan, centered around Islamabad

Young & Rubicams Brand Asset Valuator


This is a tool used to measure Brand equity. Each brand is evaluated on four sets of measures. They are listed below 1. Differentiation Measures which measures how distinctive the brand is in the market place. 2. Relevance Measures whether a brand has potential relevance for the respondent. Is it meaningful to him or her? Is it personally appropriate? 3. Esteem Measures whether a brand is held in high regard and considered the best in its class. Is closely related to perceived quality and the extent to which the brand is growing in popularity. 4. Knowledge is a measure of understanding as to what a brand stands for.

These four measures form the basis of two equations: 1. Differentiation x Relevance = Brand Strength (or vitality) 2. Esteem x Knowledge= Brand Stature Now we will use the model to evaluate djuices position on the two dimensions of Brand

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Brand Management Brand Audit: Telenor djuice

strength and brand stature.

The Young & Rubicam Model of Telenor djuice


DIFFERENTIATION

RELEVANCE

ESTEEM

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Brand Management Brand Audit: Telenor djuice

KNOWLEDGE Djuice Differentiation Relevance Esteem Knowledge 4 4 4 5 4 4 4 3 Octane 4 4 4 4 Warid Ufone 4 5 5 5 Paktel 1 3 2 3

Brand strength= relevance * differentiation Brand stature= Esteem *knowledge Strength Stature djuice 16 20 Octane 16 12 Warid 16 16 Ufone 20 25 Paktel 3 6

Brand Stature Low

High

Brand strength

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Brand Management Brand Audit: Telenor djuice

Here we can see that Ufone and Djuice are both high on both the dimensions, that is that their brand strength is high as well as the brand stature is high. Both the brands are relevant to the target market and also both offer highly differentiated products. Brand stature is high because people are really aware of both the brands due to their strong advertising spending and also because both these brands are held in high esteem by customers. Jazz Octane is high on brand strength but low on brand stature. This is because it offers differentiation and is relevant to its target market needs. But it is low on stature because not many people are fully ware of the fact as to what jazz octane stands for. Warid is high on brand stature and also high on brand strength, this is because it is differentiated and is relevant to its target market. Warids simple pricing has been a key reason in the success of Warid. On top of that availability of value added services has made it quite relevant to its target market. Paktel scores low on both brand strength and brand stature. Paktel has been one of the early entrants into the market yet it has not been able to make a strong hold for itself in the market. Its services are not that much differentiated and on top of that its relevance is also low .Its not held in high regard by its customers due to a low quality image associated with it, also in terms of knowledge not many people are sure as tow hat the brand stands for as they keep on changing their promotional campaigns. Paktel needs to revitalize its brand in order to score high on both the dimensions and needs to follow a consistent policy in terms of service and also advertising.

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Brand Management Brand Audit: Telenor djuice

6.0 Internal Elements 6.1 Brand Structure

6.1.1 Mega Brand The mega brand in the case of Djuice is Telenor. Telenor has a vast history in many countries spanning over 150 years. Telenor s mega brand includes Telenor prepaid and Telenors post paid services. 6.1.2 Brand Family

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Brand Management Brand Audit: Telenor djuice

In terms of the brand structure Djuice is part of the Telenor brand family. The family consists of Telenor prepaid service, postpaid service as well as Djuice. Telenor on one hand is targeted towards businessmen and other people who do not include youngsters, while Djuice on the other hand is targeted specifically towards youngsters.

6.2

Organization

In order to be fully understand the dynamics of Telenor as an organization, the 7 S model of McKenzie will be of great assistance. Most of us in the management stream grew up learning the 4Ps' of the marketing mix: product, price, place, and promotion. And this model still works when the focus is on product marketing. However most developed economies have moved on, with an ever-increasing focus on service businesses, and therefore service marketing. To better represent the challenges of service marketing, and since Telenor is a service organization providing internet connection service seems to be a right fit for developing framework for analyzing organizational effectiveness. McKinsey

FigGeneric 7 S model of McKenzie

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Brand Management Brand Audit: Telenor djuice

The 3Ss across the top of the model are described as 'Hard Ss': 1. Strategy:The direction and scope of the company over the long term.

Djuice is part of the famous Norwegian Telenor group. Telenor's history and background are in many ways also the history and background of the Norwegian people. Over 150 years telecommunications have played a vital part in the development of modern Norwegian society. The physical work has consisted in rolling out infrastructure and developing services, but the real job has been to build relations between people. Telenor is a fairly diversified group with operations ranging from mobile services to fixed lines to broadcast and also other units including satellite services. Telenor is a pioneer in mobile communications. Manual mobile telephony services were introduced in Norway in 1966, as a forerunner to the automatic NMT system, which appeared in 1981. Its digital successor, GSM, was introduced in 1993, and third generation mobile network, UMTS, was launched for commercial use in 2004.

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Brand Management Brand Audit: Telenor djuice

Mobile is Telenor's principal focus area for future growth. Continued development of the mobile activities is vital to the Group's positioning as an international telecommunications player. Telenor has ownership interests in 12 mobile operations in Europe and Asia.Telenor's commitments in the international mobile market are based on the company's extensive experience and skills, and on products and services developed and shared within Telenor's family of mobile operations. The creation of synergies between the mobile operations, and preparations for further industrialization will be central to Telenor's future strategy. 24Telenor entered the Pakistani market on 23rd March 2005 with the launch of its services in Lahore, Faisalabad and Hyderabad. It planned a roll out in other cities as well as time progressed. Telenor is now available at over 200 destinations in Pakistan and is growing really fast.

2. Structure: The basic organization of the company, its departments, reporting lines, areas of expertise, and responsibility (and how they inter-relate).

Telenor has seven main divisions in Pakistan which are:

1. Technical Division - responsible for network roll out in terms of towers and other hardware installations 2. Commercial Division responsible for commercializing the activities of the company in terms of new packages and other plans. 3. I.T Division provides the software support o all the activities of the company links the customers with the company through user interfaces at the walk-in centers, franchises along with data storage services and business intelligence activities. 4. Marketing Division carries out market research for the company, identifies the new trends and the shifts in consumer behavior, plays an important role in developing the
24

http://telenor.com/about/operations/mobile_operations/

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Brand Management Brand Audit: Telenor djuice

marketing strategies of the company 5. Finance Division provides the funds for capital budgeting and capital expenditures, department of accounting is also attached to the finance division 6. Procurement Division procures the hardware and software from the vendors and woks in close collaboration with the suppliers. Some big vendors or suppliers include Siemens and Nokia for network layout, Nortel, NCR, Evolving for hardware switches and tower support, C-Bill for CRM system and user interface, Geneva for Billing, and NCR for Data warehousing and Business intelligence services. 7. HR and Admin Division plays an important role in managing the human resource of the company.

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Brand Management Brand Audit: Telenor djuice

Technical

Finance
CRM - Customer User Interface - OSS

HR & Admin

IT

Data Warehouse -Generate different Reports -DSS -Taradata

Net Working -Support Different Language Binary,Java,C++

Marketing
Billing - Billing Interface -OSS

Commercial

Reports

Procurement

Top Management

Dept. Reports

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Brand Management Brand Audit: Telenor djuice

Fig 6.1 Divisions at Telenor

3. Systems:Formal and informal procedures that govern everyday activity, covering


everything from management information systems, through to the systems at the point of contact with the customer (retail systems, call centre systems, online systems, etc). GSM / GPRS / EDGE NETWORKS, PAKISTAN In April 2004 Norwegian mobile telecoms operator, Telenor, bid for and ultimately won a licence to operate a cellular network in Pakistan. The licence covers the operation of Global System for Mobile Communications (GSM), General Packet Radio Service (GPRS) and Enhanced Data Rates for Global Evolution (EDGE) technology for the network. Mobile Infrastructure Contractors The Pakistan network is a large undertaking and Telnor Pakistan have pledged that 70% of the country will be covered before network start-up. In addition, they have stated that the mobile network should be in place by April 2005. Telnor Pakistan has signed two deals with mobile infrastructure contractors for different areas of the network:

Nokia have signed a three-year deal to build and operate a GSM / GPRS / EDGE network to cover the central and Northern Punjab region (phase one), centred around Lahore

Siemens have signed a deal to build a GSM / GPRS / EDGE network to cover the southern areas of Pakistan, centered around Islamabad

Both projects are scheduled to be completed and in operation by April 2005 to conform to network license requirements. Central Pakistan And Northern PunjabMobile Network

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Brand Management Brand Audit: Telenor djuice

Nokia supply the GSM Base Station Subsystem (BSS) solution, GPRS core system and Network Switching Solution (NSS) DX 200i series, which is easily upgradeable to 3G Wideband Code-Division Multiple Access (WCDMA) technology in the future. Nokia also operates the BSS section of the network Nokia Care Services provides support using their NetAct Operations Support System (OSS). They provide software maintenance, emergency support, hardware services and maintenance and training for Telenor Pakistan personnel. Southern PakistanMobile Network Siemens provide turnkey implementation of the new network including supply and installation of all the infrastructure components for setting up a GSM / GPRS / EDGE network. These include switching technology, mobile transmission and receiving stations, intelligent networks and GPRS hardware and software. design, and site project

Siemens carries out network acquisition, civil engineering

management. They will also operations support service for provide training in software maintenance to Telenor Pakistan this system is easily upgradeable to 3G WCDMA technology in the future. Edge Data Capability

provide the initial the network and support and

Personnel. Again,

Further enhancements in data capability over the core GPRS / GSM network is provided in both networks with the installation of Enhanced Data for Global (GSM) Evolution technology. This component of the two systems allow the subscribers to have the use of advanced mobile services such as downloading video and music clips, full multimedia messaging, high-speed colour Internet access and email on the move. UsingEDGE, operators can handle three times more subscribers than GPRS, triple their data rate per subscriber, or add extra capacity to their voice communications.

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Brand Management Brand Audit: Telenor djuice

The 4Ss across the bottom of the model are less tangible, more cultural in nature, and were termed 'Soft Ss' by McKinsey:

4. Skills: The capabilities and competencies that exist within the company. What it does best.

Technology development
Telenors ASP& JSP platform

ASP services involve leasing and running software that is distributed to users through the telecom network. ASP.NET (Active Server Pages .NET) is a web development technology from Microsoft. Part of the .NET Framework, ASP.NET allows developers to build dynamic web applications and web services using compiled languages like VB.NET and C++. Using Visual Studio, the development tool from Microsoft, web developers can develop very compelling applications using ASP.NET, with the ease of drag-and-drop server controls. Telenor is targeting ASP in its markets through its subsidiaries Telenor Business Solutions and Nextra. In addition, Telenors ASP platform Login is distributed through a comprehensive network of partners. Today, Login has approx. 5200 connection points. As part of the Oracle agreement Telenor Business Solutions has developed its own operating expertise in Oracles products in order to become a Certified Solution Partner, authorized to provide service and support. Moreover, it is using JSP for web applications which provide a way to dynamically generate web pages and simplifies the process of developing web-based applications. JSP-enabled pages use a combination of HTML, XML, and short Java scripts that, when compiled, make up servlets. JSP-enabled pages are similar in form and function to pages containing PHP or ASP.

Gigabytes to Terabytes

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Brand Management Brand Audit: Telenor djuice

To support the increasing need of datwarehousing, Telenor has enhanced its


capacity

data storage

from gigabytes 10^9 to terabytes 10^12(.equal to approximately 1000 Gigabytes).

Oracle 9i to Teradata25

Considering the competitive environment, Telenor exists in, the extreme pressures to not simply satisfy the customers rather delighting them seems to be the only answer. In this new era, Telenor felt the need of a warehouse that can be leveraged across the organization to support all users with a single view of the data moving from a back-room strategic decision support system to an operationalised business-critical component of the enterprise. Thus, realizing the need for enterprise data warehousing, Telenor, added a new data base- for decision support services Teradata in October 2004.This new Teradata database provided following benefits:

Establish a single, centralized data warehouse with direct access by all the departments across the organization and performing decision-making Integrate data from multiple sources26 and functional areas using one data model Handle large and growing data volumes, data complexity and number of users by automating or eliminating difficult database management tasks Allow both tactical and strategic queries on the same system at the same time! No need for a costly, complex data mart environment Timely Reporting Creation of a Decision support environment, which helped the management on the divisional basis.

5.Shared values: The values and beliefs of the company. Ultimately they guide employees towards 'valued' behavior.

25 26

Exhibit 6, weaknesses in oracle 9i The different sources included the data provided from the Oracle databases, recording transactions and were present in the CRM, Billing and Networking departments. By:

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Brand Management Brand Audit: Telenor djuice

Core Values Telenor's three core values shall be at the heart of and governing the conduct of our employees - internally and externally: 1. DynamicBeing dynamic means having insight and active involvement, coupled with a capacity for implementation. 2. InnovativeBeing innovative means continuously being on the lookout for new opportunities for development and growth. 3. Responsible Being responsible means raising realistic expectations, deliver as promised and stay committed to the society which our group is part of. Vision 27 Telenor shall be a driving force in renewing, developing and introducing new solutions that simplify our customers' workday. Telenor's vision is demanding, setting an ambitious goal for the organization and its individual employees. Renewal and simplification of our own structures and routines is a prerequisite for attaining competitive power and added value.

6. Staff: The company's people resources and how they are developed, trained, and motivated. The staffing is done according to requirements which include technical, Finance , Human resources and administration, Information technology, Marketing, commercial and

procurement. After the hiring is done proper training is provided to all the people in the required fields. The company considers its human resource as an asset and does whatever it can to keep its employees happy and contended. 7. Style: The leadership approach of top management and the company's overall operating approach.

Operational approach
27

http://www.telenor.com.pk/about/vision.php

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Brand Management Brand Audit: Telenor djuice

Telenors principles of corporate governance shall secure shareholder values, a positive and robust corporate culture and a good reputation. Telenor has clearly set out its value base through the vision Telenor ideas that simplify, in combination with the core values dynamic, innovative and responsible. In accordance with these core values, Telenor has devised new Codes of Conduct. Telenors principles of corporate governance are primarily based on the various public regulations and guidelines that Telenor is subject to. As a Norwegian and international group, Telenor is subject to Norwegian law and the legislation of the countries in which operations are carried out. Furthermore, as Telenor is listed on the Oslo Stock Exchange it is also subject to regulations relating to the stock exchange. Being listed on Nasdaq entails an obligation to uphold legislation relating to stocks and shares in the US, including the Sarbanes-Oxley Act and Nasdaqs own regulations. The complete body of public regulations also contains more general requirements for operations, as well as a number of rules relating to good corporate governance. Special references are made to company, accounting and stock exchange regulations and guidelines that include requirements for the organisation of the operations, management principles, financial reporting, company law responsibilities and information to the market etc.Telenors principles of corporate governance are further inspired by the national Norwegian recommendation for good corporate governance of 11 December 2003. The external and internal regulations and guidelines combined provide Telenor with a solid foundation for the proper management of the company and for developing a positive and robust corporate culture.

The Corporate Assembly And Board Of Directors, Composition And Independence


Pursuant to Norwegian law, Telenor has a Corporate Assembly, which is a distinctly Norwegian body, and a Board of Directors.The Corporate Assembly is mainly a supervisory body which supervises the Boards management of company business. The Corporate Assembly also has decision-making powers in limited, but important areas.

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Brand Management Brand Audit: Telenor djuice

Further stipulations concerning the composition of the Corporate Assembly and of the Board are laid down by the AGM and included in the companys Articles of Association. The Corporate Assembly has a total of 15 members who are appointed for a period of two years. The Corporate Assembly and the Board shall be made up to ensure a broad representation of Telenors shareholders. When appointing Telenors Corporate Assembly and Board, emphasis is also placed on meeting Telenors needs for expertise, capacity and balanced decisions. Six of the fifteen members of the Corporate Assembly and four of the ten Board members are women. The shareholder-elected members of the Corporate Assembly and of the Board are independent of the companys management.

THE

NOMINATION

COMMITTEE

It is not a requirement of Norwegian law for the company to have a nomination committee, but a nomination committee is set up in accordance with resolutions determined by the AGM. Further stipulations regarding the Nomination Committee are included in the Articles of Association. The Nomination Committee consists of four members who are shareholders or who represent the shareholders. The Chairman of the Corporate Assembly is a member and chairs the Nomination Committee. Two members are elected by the AGM and one member is elected by and from the Corporate Assemblys shareholder-elected members and alternates. Members are elected for a two-year period.

The

Board

of

Directors

Pursuant to Norwegian law, the Board is responsible for the management of the company and the proper organisation of the operation, including a responsibility to supervise the company management. In addition to statutory requirements, the Board works in accordance with special regulations for the Board, as well as guidelines and procedures for Telenor ASA. The guidelines and procedures that apply to the Board include regulations for the preparation of agendas, privacy and confidentiality, competence, responsibility to establish a
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Brand Management Brand Audit: Telenor djuice

management system that ensures that activities are run in accordance with the companys core values, ethical guidelines and generally accepted principles of corporate governance, information on the use of steering committees and evaluation of the Boards activity and competence. In accordance with the said guidelines and procedures, the Board is responsible, to the degree necessary, for determining strategies, business plans and budgets for the company. The Board is also responsible for ensuring that the company has a competent management with clear internal apportionment of responsibility and work.

TheCEO
The CEO is in charge of the day-to-day management of operations in Telenor ASA and the Telenor Group. The CEO is responsible for ensuring that the company and Group are organised, run and developed in accordance with current legislation, regulations and resolutions passed by the Board, the Corporate Assembly and the AGM. The Board has devised guidelines and procedures for the CEO, covering the management of the Telenor Group, the management of ownership interests, the powers of the CEO, the CEOs submission of issues to be determined by the Board and the CEOs obligation to report to the Board. Moreover, the CEO will be an owner representative in subsidiaries, provided that the issues in question do not require that they are handled by the Board, Corporate Assembly or the AGM. At the election to the boards of Telenors subsidiaries, such election of the board, and its functions, shall be made in accordance with Telenors principles of corporate governance. Standard guidelines and procedures for the Board were approved in 2003 for Norwegian subsidiaries in the Telenor Group. The management and culture development in international subsidiaries is implemented according to principles that are set down under the common term The Mobile Way.

Group

Management

The Group Management consists of the heads of the key business areas and functions at

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Brand Management Brand Audit: Telenor djuice

Telenor. Issues of an important strategic, financial or fundamental matter to the company are dealt with in the Group Managements weekly meetings, including the preparation of items for the Board, the Corporate Assembly and AGM, and also including strategy, ongoing follow-up of activities and coordination between the companys senior managers etc.

Management

Model

Telenor has established a management model whereby goals are set, and results followed up in a systematic way. This applies to a number of vital financial matters, such as operational results, capital return and cash flow, and is also applicable to a number of non-financial matters relating to Telenors position in the market, including its capacity for innovation, internal routines and responsibilities as an employer. These financial management matters are followed up in the financial management Business Review, at Board meetings and through the companys incentive system.

6.3

Customer services

Customer services are available to the consumers of Djuice via their mobile phone sets. They have to dial 345 from their mobile and get ion contact with the customer service representative. This service is available 24 hours and in that way the customer service of Djuice is good, although some consumers at times could not get in touch with the Telenors representatives due top the lines being over crowded. Whenever any customer has some complaint they can immediately get in touch with the customer sales representative and even if there is no complaint and customers just want to hear about the latest offerings and sales promotions of Djuice they can dial the number 345 from their cell phones. Another way in which customers can get in touch with Telenor is through the webpage of Telenor. Here they have access to the email of Djuice and can post their queries through e mail.

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Brand Management Brand Audit: Telenor djuice

6.4

Brand Education Fig 6.2 SWOT Analysis

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Brand Management Brand Audit: Telenor djuice

Strong Brand recognition Competitive price Strong positioning Increasing customer base Strong marketing and promotion High perception of quality amongst the customers Norwegian company Years of experience in the foreign Strengths market

W T

Launching before a well established operating system Negative word of mouth because of various issues including blasphemy cartoons Operate only in 200 cities and highways while competitors have an extensive coverage

Weaknesses

High market growth rate M-commerce Strengthen its market position

Threat of substitutesderegulation Competition from local and international companies Major chunk of customer base is with Mobilink and Ufone

Opportunities

Threats

The distribution channel of Djuice includes the retail outlets of Telenor as well as other super stores where the connections of Djuice sell. In terms of the retail outlets owned by Telenor itself and its franchises they are very well educated about the benefits of Djuice and are
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Brand Management Brand Audit: Telenor djuice

in a good position to tell customers about it, but in terms of educating other super stores, Telenor is somewhat behind as these superstores only have the basic information about what Djuice is and nothing beyond that. Telenor needs to educate these people as well which it does to a limited extent through its advertising and promotional campaigns. In terms of compliance with standards the retail outlets do comply with organizational standards as they are owned by Telenor itself and the other superstores comply with standards in the form of fixed pricing for Djuice connections.

6.5 Consistency
The responsibility of the brand staying focused on the marketing department of Telenor as a whole. These are the people who design the ads and the positioning of djuice. It is up to them to make sure that a consistent and relevant message is communicated to the customers. They carry out regular market research in order top determine what the customers preferences are. The ongoing promotion of free MMS was designed by the marketing department keeping in mind the needs of the consumers. In terms of one individual the brand manager of djuice is responsible for making sure that the brand stays focused. This he does with the help of the marketing department.

6.6 Policy
In terms of policies the general policies at Telenor favor the positioning and goals of djuice.

6.7

Brand Architecture

Brand architecture is a systematic way of organizing the identity of the different products, messages, or elements of an organization so that people both within and outside of the organization understand how its clients or customers are being served. Brand architecture also provides a solid framework for an organization to manage future opportunities so that the new ventures are strengthened by their association with the value and equity invested in current

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Brand Management Brand Audit: Telenor djuice

activities.Basically, a brand architecture is a system for assuring that every contact a customer (whether business or consumer) has with a brand is consistent. And, consistency is a key component of building a successful brand. There are two other advantages to developing a brand architecture: 1. It helps everyone in the organization see and understand the connection between corporate brands and master brands, and 2. It makes decision making easier when it comes to messaging and graphic design options.

Djuices Brand Architecture


Here we will have a look at the Brand Architecture of Djuice: TELENOR CORPORATE BRAND

RANGE BRAND

POST PAID CONNECTIONS, PREPAID CONNECTIONS

DJUICE, PRODUCT-LINE BRANDING

SUB BRANDING
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Brand Management Brand Audit: Telenor djuice

With value added features

Here we see that the corporate brand or the master brand is Telenor. Telenor is a conglomerate which owns a range of services among which is mobile phone communications as well. The range brand is post paid and prepaid connections by Telenor.In terms of the product line branding we have djuice, which falls under the label of prepaid connection. In terms of sub branding we have a plain djuice connection or one with value added features as a subbrand generally denotes variations in the product line brands.

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Bibliography
http://www.telenor.com/reports/2000/case/djuice/djuice.html http://www.telenor.com.pk/about/pressrelease.php http://www.pakistan.gov.pk/ministries/NewsInfo.jsp?MinID=7&cPath=78& div=itandtelecom&file=moit22022005_01.xml&path=ministries/moit/ http://zainman.blogspot.com/2005/03/look-into-telecommunicationindustry.html www.arabnews.com http://www.telenor.com/ir/presentations/pakistan/telenor_pakistan_2005.pdf www.tutor2u.com Business Recorder magazine http://www.telenor.com/reports/2004/map.html

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