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TABLE OF CONTENTS

Acknowledgement 3
Abstract 4
Introduction 7
Corporate Profile 8
Company Vision 9
Shareholders 9
Message from chairman 10
Company Brand Values 11
Objectives 13
Warid Telecom’s Business Overview 14
 GSM Services
 LDI/WLL Services
 International Gateway
Business Partners 16
Strategy to increase market share 17
Marketing Environment – Pestle Analysis 17
Stats table 20
Labour Force and Household Income table 21
Detailed Competitors Analysis 23
Market Share 24

MOBILINK
 UFONE
 INSTAPHONE
 PAKTEL GSM
 TELENOR
SWOT Analysis cellular industry 31
Brand Personification 32
Marketing Objectives 32
BCG Growth Matrix 34
Growth strategy 35
Market Segmentation 36
Positioning 37
Product 38
Promotion 39
Promotional strategy 41
Distribution 43
Concludion 44

Final Project – Marketing Strategy and Policy 2


Acknowledgement
First of all we thank to ALLAH Almighty, creator of the
entire universe, worthy of all praises, who guides us in the
darkness and all respects for His last PROPHET (PBUH).

Such an extensive study cannot be the sole work of a


small group of individuals. There are a number of people
who have contributed towards the completion of this project.

We are enormously grateful to the staff of Warid for


providing us every relevant material, for supplying many
timely suggestions and for helping us. Special thanks and
appreciation to Mr. Farhan Abbas (Marketing Head Warid)
and Mr. Ali Ikram (Asst. Brand Manager Warid) for providing
us a deep and complete knowledge of marketing practices at
Warid, and allowing us to map these concepts onto our
project. Without their cooperation this work would not have
been possible.

Last but not the least we would like to thank each other
for being there for each other at all times. Also, We are really
thankful to our friends for the very useful suggestions.

No borders. No barriers. No limits. Has there ever


been a change in human behavior as rapid and
exciting as that of the telecommunication revolution
in Pakistan?

Final Project – Marketing Strategy and Policy 3


Abstract
Man from his very nature is fond of expressing his
ideas and sharing his emotions. The expansion in the
population and early wars forced the people to start moving
towards other parts of the world. This spread continued and
every geographical location developed its own culture and
living habits. People then used to move to far-flung areas to
earn their living and trade was a major factor, which
directed the way for the globalization. The distances were
large and early messages were sent through heralds who
used to carry letters from one state to another. Some
species of birds were also used for the purpose and it was
hectic and time consuming to make the memos reach to
the people. Among other advancements in various aspects
of life, worth attention was given to bring improvement in
communication sector.

Communication is the basic tool to get in touch with


the happenings of the world. The introduction of new
technologies has changed the face of the world and the fast
increasing population with increasing awareness has lead to
an increase in the thrust to attain better in life. These
factors have opened up new markets and have also
standardized and explored a lot of classes among the
consumers of every nature. The competition is increasing
among the business entities and the current focus of every
corporation is the consumer. The marketing concepts have
now changed their direction towards the importance of an
individual.

Looking at the current situation of the communication,


after the development of land lines, there was an urge to
use the communication tools when the people were on their
jobs as land lines couldn’t be carried along. So, with

Final Project – Marketing Strategy and Policy 4


continuous improvement mobiles were invented which from
its name makes this concept clear that they are handy and
can be carried along where ever you are. At present, the
market for mobiles is increasing all over the globe as more
and more people become aware of

this fine technology. Similarly, the market for the cellular


service providers has recorded a great growth.

The cellular technology has been very successful in


Pakistan. At present six mobile companies are providing
cellular mobile services in Pakistan. These are Paktel,
Pakcom (Instaphone), Pakistan Mobile Communications
(Mobilink), Pakistan Telecommunication Mobile Limited (U-
Fone), Telenor and Warid Telecom. Paktel is 98.6% owned
by Millicom International Cellular (MIC), whereas Sanbao
Telecom, another MIC subsidiary, owns 61.25% of Pakcom.
Only two companies, Mobilink, majority owned by Orascom
Telecom, and PTML, a 100% PTCL subsidiary, were using
digital GSM technology for their services and Paktel also
launched its GSM connection in 2004. Instaphone has only
recently introduced the digital version of its analogue
technology D-AMPS (Digital Analogue Mobile Phone
System). With each player holding on to a sizable share, the
cellular market in Pakistan is characterized by cut-throat
competition.

A significant milestone in Pakistan’s mobile sector has


been the implementation of the Calling Party Pays (CPP)
tariff regime from November 2000. This has not only
fulfilled a long-standing demand of the mobile operators but
has boosted mobile telephony tremendously within the
country. Earlier tariff for mobiles was based on the Mobile
Party Pays (MPP) regime, which was an impediment to
mobile growth and usage.

Pakistan has experienced sizable population growth


over the last few decades. Its current population of around

Final Project – Marketing Strategy and Policy 5


150 million is expected to grow to 190 million by 2018
according to UN forecasts.

The province of Punjab accounts for 26% of the land


mass and accommodates 56% of the population creating a
population density of 402 people per square kilometer. This
compares to Balochistan, which covers almost 50% of the
country’s geography but has a small population, around 5%
of the total, where the population density is only 19 people
per square kilometer.

Assuming that future cellular coverage reaches 95% of


all urban population and 30% of rural population and taking
into account the relative geography

and population density of each Province, there is a potential


demand of approximately 25 million cellular subscriptions
by 2018.

The cellular industry in Pakistan has registered


significant growth when the tariff mechanism changed from
Mobile Party Pays to Calling Party Pays regime in year 2000.
At approximately the same time Ufone, a subsidiary of the
state owned PTCL, launched its commercial service.

In Pakistan, cellular companies have mostly been


focusing on major cities, with a minor effort to offer coverage
in rural and less privileged areas. Seventy percent of the
business comes from the four major cities i.e. Karachi,
Islamabad, Lahore and Faisalabad. It is only recently that
Sialkot, with 800 industrial units, received attention of some
cellular phone companies. Although they have adopted
emerging technology but the performance of various
operators is far from the optimum. Unless the organizations
use latest technologies combined with efficient service
provision to subscribers, full benefits will not be achieved.

Final Project – Marketing Strategy and Policy 6


Introduction
The current mobile phone industry is highly
competitive. Paktel was the first company to be launched in
Pakistan followed by Mobilink , Insta phone and then Ufone.
The license to the two new firms i.e. Telenor and Warid
Telecom have made the market even more competitive and
price sensitive. Mobilink currently has the highest customer
base followed by Ufone. The excessive amount of
connections given by the mobile phone companies across
Pakistan have caused network congestion and the current
satisfaction level of the customers regarding their mobile
phone companies is very low. This has caused many people
to switch their mobile service providers and try other
companies but the general level of satisfaction seen for all
the companies is on the lower side.

For a new company recently launched i.e. Warid


Telecom in our case, there lies a huge potential market both
tapped and untapped. Current mobile penetration in
Pakistan is around 3%. Also, the country has a large
population of 150 million (sixth most populous in the world)
and a market with a strong appetite for communication
services. The potential of this market is further evident from
the limited existing coverage areas, capacity constraints and
continued aggressive expansion by the current telecom
operators. With new entrants, customers will be provided
with more choices, better quality of services, cheaper rates
and many new innovative products, which Warid Telecom
wishes to pioneer.

Final Project – Marketing Strategy and Policy 7


The existing users if catered properly will definitely
switch to Warid if it can provide them with the right service
at affordable prices. The untapped market could also be
catered by offering low prices and marketing and promoting
the product attractively.

The nature of the consumers in Pakistan and the low


income level of the people has to be taken into account,
which basically revolves around two factors; highest quality
with lowest possible prices. If Warid telecom can present the
customers a clear message along with all the value added
services with highest quality network, it has a huge potential
for not only growth but also becoming the market leader in a
short period of time. The promotional campaign needs to be
very attractive and strong and awareness programs are
needed for the purpose of both brand recall and usage of
mobile phone. Supply chain management along with the
proper customer relationship management is required by
Warid Telecom to establish it self and differentiate itself from
all other mobile phone companies.

Corporate Profile
Warid Telecom formally launched its nationwide GSM
network in Pakistan in May 2005. It belongs to the Abu Dhabi
Consortium, lead by His Highness Sheikh Nahayan Mabarak,
previously been responsible for the successful operations of
Bank Alfalah and United Bank Limited in the country. The
group has been recently awarded a license of US $291
million to operate mobile services, after the implementation
of the Deregulation Policy of Telecom Sector by the
Government of Pakistan in 2004. In addition, Warid Telecom
also holds a license to operate Long Distance & International
(“LDI”) and Wireless Local Loop ("WLL") activities. These
services provide international termination of traffic into
Pakistan, alternative affordable nationwide and international
voice telephony and data & value added services. These
services also target a market that is highly price competitive

Final Project – Marketing Strategy and Policy 8


and quality conscious. It is Warid Telecom’s intent to provide
premium quality services powering not only its mobile
network, but also its customers and partners.

As a consequence of the growth and deregulation in the


telecom markets, Warid Telecom is also evaluating many
other options. These include a national transmission network
providing quality connectivity across Pakistan, vertical
integration into complimentary markets such as Call Centers
and Product Development, and several other options.
International plans include expanding mobile, LDI and
telecom footprints in other key markets with similar profiles.

The team at Warid Telecom is working hard to ensure


that their network rollout and coverage build up is
second to none and that there are no compromises in
the quality of the service they offer.

Company Vision
“To become the leader in national communications
arena with a strong international presence.”

Shareholders
Warid Telecom’s shareholders include:

His Highness Sheikh Nahayan Mabarak Al Nahayan - Member


of the Royal Family of Abu Dhabi, Minister for Higher Studies
and Chancellor of the University of Al Ain.

His Excellency Sheikh Suroor Bin Mohammed Al Nahayan -


Chamberlain of the Royal Amiri Courts and Member of the
Royal Family of Abu Dhabi.

His Highness Sheikh Hamdan Bin Zayed Al Nahayan

His Excellency Sheikh Mohammed Bin Butti Hamid Al Hamid -


Chairman Abu Dhabi Municipality and Head of the Tribe.

Final Project – Marketing Strategy and Policy 9


His Excellency Sheikh Saeed Bin Mohammed Al Nahayan -
Member of the Royal Family.

His Excellency Sheikh Saif Bin Muhammed Bin Butti Hamid Al


Hamid

His Excellency Sheikh Saeed Bin Nahayan Mabarak Al


Nahayan

His Excellency Dr. Mana Saeed Al Otaiba - Advisor to the


President of the UAE & Ruler of Abu Dhabi (His Highness
Sheikh Zaid Bin Sultan Al Nahayan) and ex Oil Minister of
UAE.

Bank Alfalah-Leading Private Bank of Pakistan

Message from the Chairman

We are confident that like Abu Dhabi Group's hallmark in banking


industry of Pakistan, Warid Telecom would not only reach out to every

Final Project – Marketing Strategy and Policy 10


corner of the country but will also set new trends and standards of
providing the latest technology, unparalleled quality service and customer
care in the telecommunication industry of Pakistan.

The Abu Dhabi Group is led by His Highness Sheikh Nahayan Mabarak Al
Nahayan. His Highness is the Federal Minister for Education of the United
Arab Emirates. He is also the chairman of Warid Telecom, Wateen Telecom,
United Bank Limited, and is also the Founder Chairman of Bank Alfalah
Limited.

Company Brand Values

The following are the key beliefs of the philosophy followed


at Warid Telecom:-

Quality

Simplicity WARID Transparency


TELECOM’S
BRAND
VALUES

Customer
friendliness Innovation

Final Project – Marketing Strategy and Policy 11


A detailed analysis of the brand of Warid Telecom is stated in
their philosophy as follows:-

Quality

o Premium quality of service


o International standards
o Second to none

Transparency

o Open and honest – nothing to hide


o What you see is what you get
o We say what we do and we do what we say

Innovation

o Bright ideas - the only thing that restricts us is


our imagination
o Continuously improving through challenging the
norm and by looking at things differently
o Leading the way in adding value to your life

Customer Friendliness

o Affordable solutions for you


o Speaking your language
o Being there for you, when you need us

Simplicity

o Ease of use
o Making communication simple
o Clear and straightforward

Final Project – Marketing Strategy and Policy 12


Objectives
As part of its business strategy, Warid Telecom attempts
to persue the following goals in order to enable it to not only
capture market share from existing players, but also acquire
the so far untapped market.

• Establish itself as a leader


• Offer superior products and customer value
• Provide high quality of service
• Availability of customer support
• Increase the overall market size
• Increase mobile penetration
• Offer broader coverage
• Provide to all income groups due to its affordability.

Warid Telecom believes in working with strategic partners


and employees for long term relationships. As a
consequence of the above Warid Telecom is looking for the
following to deliver its vision:

• Strategic vendors and partners to assist in rolling out


these services in a timely and efficient manner with a
focus on turnkey solutions and premium propositions
• Strong partners to assist in launching these services
and creating effective sales & marketing / business
development opportunities for all to operationally and
financially gain
• Consultants and experts to help deliver this vision
• Well rounded employees who wish to become part of
this adventure

Final Project – Marketing Strategy and Policy 13


Warid Telecom’s Business
Overview
Warid Telecom, one of the latest entrants in the
telecom sector in Pakistan, plans to operate and manage a
leading telecommunication business focusing primarily on
the following licenses awarded for US $291 million:-

• GSM
• LDI (Long Distance International)
• WLL (Wireless Local Loop)

GSM Services

Warid Telecom decided to opt for GSM (Global System


for Mobile Communication) technology as it is the global
standard for digital cellular telephone service. GSM networks
support enhanced data applications and more than 1 billion
customers in 109 countries are using this technology. Warid
Telecom has launched its cellular services based on 900 and
1800 GSM technology, in order to optimize the utilization of
frequency, thus ensuring the highest quality and service.

LDI/WLL Services

The main services being provided under Warid Telecom’s


LDI license include:

• International Gateway (Inbound Termination of


Minutes by Warid Telecom)

Final Project – Marketing Strategy and Policy 14


The current PTCL official rate is US18.05c based on an
APC rate of US12.05c. There tend to be many hidden
additional costs with calls terminating on existing
operators along with significant administrative issues.
Warid Telecom operates on a transparent basis. The
intention is to provide lucrative terms to their Partners
based on a cost plus basis to create long-term business
opportunities.

• Outbound International Termination

Currently all traffic originated by customers in Pakistan


is terminated through PTCL to 3rd party international
operators. To date this market has severely been stifled
as a consequence of excessive pricing and poor quality
of service (i.e. individuals cannot get international
connectivity at peak hours due to network congestion
and pricing to date has come down by 50%). The
market has proven to be highly price elastic. Warid
Telecom intends to generate and grow this business
substantially through its mobile LDI and WLL activities
over the next 3 years in conjunction with its partners.

• Nationwide & International Traffic Origination in


Pakistan

The Pakistan market is highly entrepreneurial with a


large mushroom market. Furthermore, through customer
pre-select/select services (e.g. four digit access codes)
and Wireless Local Loop, Warid Telecom believes that
there is significant customer and O&M market potential
for the origination of nationwide and international traffic.
Warid Telecom intends to work with foreign companies to
create win-win business initiatives.

• Data & Value Added Services

Warid Telecom will focus on providing the following


services to its potential clientele:

Final Project – Marketing Strategy and Policy 15


o IP Telephony
o Internet Access
o Point to point and point to multi point connectivity
such as VPNs or IP VPNs
o Disaster recovery, financial transaction verification

It is Warid Telecom’s belief that most companies are


underestimating the potential of this market. Already Warid
Telecom has approached several large organizations with
multi point locations that have shown an interest in this
bundled solution.

Business Partners
Warid Telecom is looking to become a leading
communications company in Pakistan with an international
footprint. Warid Telecom wishes to leverage its Partners
innovative and robust solutions to launch a Quality Service.
To highlight this Warid Telecom has entered into a long term
agreement with Ericsson, the leading wireless solution
partner in the world.

Nortel and Cisco are other key technical partners of Warid


Telecom, providing full LDI services across Pakistan.

Sales & Marketing and Business Development are critical for


any company's success. Warid Telecom appreciates the
importance of strategic partners in creating synergies which
allow faster time to market and new avenues to sell. To that
extent, Warid Telecom has defined an Alliance Program to
provide preferential terms to its key Partners enabling them
to sell these services to grow existing business and develop
new opportunities. The Alliance Program will encompass new

Final Project – Marketing Strategy and Policy 16


product launches, affinity Sales & Marketing programs, O&M
agreements and value added reseller programs.

Warid Telecom's partnership philosophy encompasses key


stakeholders such as:

International Telecom Operators / Carrier Sales Business

Wholesale and O&M Partners (e.g. Calling Card, Payphones,


VoIP resellers and Agents)

Corporate & Retail Partners (Financial Institutions,


Hospitality, Oil & Gas, SME/SOHO, Textiles, etc)

Strategy to increase market share


In order to gain a footing in the mobile market Warid
Telecom has partnered with Ericsson to provide network
solutions for the business. Being one of the top cellular
vendors established in over 140 countries with vast
experience in the industry, Ericsson will be able to offer
Warid Telecom the latest technology required for their
business. This coupled with Warid Telecom’s sound financial
backing will place it in a strong strategic position to capture
the market share in the tapped as well as the untapped
market.

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
support will enable it to not only capture market share from
existing players, but also acquire the so far untapped
market.

MARKETING ENVIRONMENT – PESTLE


ANALYSIS

Final Project – Marketing Strategy and Policy 17


This section examines the PESTLE analysis i.e. political,
economical, social, technological, legal and environmental
context of the telecommunications industry in Pakistan.

POLITICAL
POLITICAL

ENVIRONM-
ENVIRONM- ECONOMIC
ENTAL ECONOMIC
ENTAL
PESTLE
PESTLE
ANALYSIS
FORANALYSIS
WARID
FOR WARID
TELECOM
TELECOM

LEGAL SOCIAL
LEGAL SOCIAL

TECHNOLO-
TECHNOLO-
GICAL
GICAL

Political Issues
An important factor that is critical for all foreign
investors is the political condition of Pakistan. Pakistan has
struggled to stabilize its political system since independence
in 1947, and this instability poses a threat to investors.
Terrorism in certain areas of the country is also an
impediment Warid should keep in mind. Just two years ago,
Pakistan-India relations were at their nadir, today the two
powers have lowered their tensions and increased
cooperation and peace. Warid can incorporate this
phenomena and feeling of brotherhood between the two
nations as a tool for its promotional strategy.

Social & Demographic Issues


Population and Demographics

Final Project – Marketing Strategy and Policy 18


• The most attractive feature about Pakistan for any
investor is its 150 million population.
• It is the sixth most populous country in the world with a
highly unmet demand for cellular services.
• The family size of 4.8 per family is also a positive
indicator for Warid Telecom.
• The population break up is: 0-14 years: 40.2% ; 15-64
years: 55.8% ; 65 years and over: 4.1% (2004 est.).
o Nearly 40% of the population is very young i.e
below the age of 15 and hence are unlikely to
become mobile subscribers. This limits the
addressable market. However, the economically
active population, defined as those aged 15-64,
account for only 55.6% of the total population,
which is a good sign for Warid Telecom, but it
should also pay importance to the literacy rate
levels in the country.
• From the table below, we can see that the population is
quite dispersed across the different regions of Pakistan,
with Punjab possessing more than half of the
population, followed by Sindh that has half the
population of Punjab, and then NWFP. Warid should
therefore be concerned with the aspect of covering the
demand of these provinces by knowing the density in
each area.
• Urban population of Pakistan is 32.5 % while the rural
areas cover around 67.6%. Warid should carefully
examine the target segments for both its cellular and
WLL customers. Warid should to develop a strong
cellular distribution network by expanding to unmet
demand in rural as well as urban areas in order to
transform non-users into users.
• Age distribution of population is pretty much the same
in all provinces and has been explained earlier.
• However, Economically active population i.e our the
decision makers and buyers of Warid’s cellular service
are on an average 22.24% in Pakistan, with a bit of
variation amongst the 4 provinces.

Final Project – Marketing Strategy and Policy 19


• The urban and rural population distribution shows that
32.5% of the population lives in urban areas while
67.5% of the population resides in rural areas. Warid
should definitely keep this in mind when designing its
distribution strategies. The different urban-rural
population ratios are given below and it can be seen
that there is no province where the urban population
exceeds the rural population. Warid should definitely
target the rural areas also as they form a major
segment of the market.

Indicators Pakist NWFP Punja Sindh Balochis


an * b tan
Area (Sq. K.Ms) 796,096 74,521 205,345 140,91 347,190
4
Population (%) 150 13.42 56.23 24.99 4.96
million
Male 52.03 51.22 51.74 52.88 53.4
(percentage)
Female 47.97 48.78 48.26 47.12 46.6
(percentage)
Urban Proportion 32.50 16.87 31.27 48.75 23.90
Rural Proportion 67.5 83.1 68.7 51.2 76.1
Population 166.3 238.10 358.52 216.02 18.9
Density
(Person per Sq.

Final Project – Marketing Strategy and Policy 20


K.M.)
Sex Ratio 108.50 105.02 107.23 112.24 114.60
(Male Per 100
Female)
Avg Annual 2.69 2.82 2.64 2.80 2.47
Growth
Rate(1981-1998)
Pop. Under 15 40.2 47.20 42.52 42.76 46.67
(%)
Pop. 15 – 64 55.8 49.79 53.46 54.47 50.81
Years (%)
Pop. 65 & Above 4.1 3.01 4.02 2.77 2.52
(%)
Age Dependency 88.34 100.83 87.07 83.58 96.79
ratio
Literacy Ratio 43.92 35.41 46.56 47.29 24.83
(10+)
Male 54.81 51.39 57.20 54.50 34.03
Female 32.02 18.82 35.10 34.78 14.09
Enrollment Ratio 35.98 31.46 39.38 32.78 23.53
(5-24)
Male 41.19 40.99 43.83 37.35 29.49
Female 30.35 21.30 34.63 27.70 60.40
Economically 22.24 19.41 22.55 22.75 24.05
Active Population
(%)
Labour Force 31.98 29.09 31.98 32.73 36.45
Participation
Rate (10+)
Un-employment 19.68 26.83 19.10 14.43 33.48
Rate
Disabled 2.54 2.12 2.48 3.05 2.23
Population (%)

Labour Force and Household Income:

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REGION Total Average URBAN RURAL
Employe Monthly
es Income
Pakistan 100% 3432.37 4111.22 2857.60
Punjab 60.85 3014.44 3499.04 2684.20
Sindh 24.95 4513.88 4965.11 3329.87
Baluchist 4.16 3450.91 4466.81 3146.35
an
NWFP 10.04 3270.31 3802.11 3124.04

Although Punjab has the highest population, its


average monthly income is lower. The average household
income of Pakistan is Rs. 3432.37, therefore, Warid should
be aware of the fact that Pakistan is an affordability driven
market and price setting will be key to the success of the
operations of the company.

The average urban monthly income is 4111.22, while


the average rural income is 2857.60, therefore this disparity
of income should be kept in mind when designing the
packages.

Literacy. No more than 45.7% of adults are literate (male


59.8%: female 30.6%), and gender disparities in education
remain significant. Low literacy rates affect promotional
agendas; hence awareness/knowledge increasing and
informative advertisements and campaigns should form a
key part of the marketing mix.

Islam (Religion. Another key factor in Pakistan is the


espousal by the government of the teachings of Islam,
followed by almost 97% of the population. Warid Telecom is
uniquely placed to understand the relevance of this in all
areas of the business, since it is fully owned and controlled
by Islamic business groups from both Pakistan and UAE.

Technological Issues

Final Project – Marketing Strategy and Policy 22


Pakistan has a cellular market penetration of 4.1% and
a highly unmet demand. The domestic telephone system is
mediocre, but improving; since 1988, the government has
promoted investment in the national telecommunications
system on a priority basis, significantly increasing network
capacity; despite major improvements in trunk and urban
systems, telecommunication services are still not readily
available to the majority of the rural population. LL, LDI, WLL
and cellular licenses have been awarded and are operational
in Pakistan. CDMA, TDMA, GSM, GPRS technologies are also
present, which does not give Warid a first mover advantage,
however, building carefully upon these technological
competencies can help it gain a differential edge over its
competitors.

Legal Issues

The legal system is based on English common law with


provisions to accommodate Pakistan's status as an Islamic. It
should be thoroughly analyzed by Warid Telecom. Various
legal factors, corporate law sections, contract formulations
and other legislations should be noted down. PTA, MOITT,
NTC, FAB and SCO are the legal bodies of the
telecommunication industry performing distinctive
regulatory functions.

Environmental Issues

Pakistan's attempt to raise the living standards of its


citizens has meant that economic development has largely
taken precedence over environmental issues. Unchecked use
of hazardous chemicals, vehicle emissions, and industrial
activity has contributed to a number of environmental and
health hazards, chief among them being water pollution.
However, this does not have a direct impact on Warid
Telecom’s launch, but it may be incorporated into its
promotional dimensions.

DETAILED COMPETITOR ANALYSIS

Final Project – Marketing Strategy and Policy 23


Competitors can be classified as:-

Budget: Transport &


Communication
Air
Bus
Generic: Telecom
services by licenses
Car

Product category:
Telecom industry LDI

Telegram
LL Satellite
Product form:
(Thuraya)
Cellular
Train

wirelessservice
Internet
GSM providers phones
Warid,Mobilink,
Ufone, Insta,
Fixed Paktel, Telenor Cellular

Cardpayphone

WLL

Postal services Fax

Final Project – Marketing Strategy and Policy 24


Market Share

Mobilink is by far the market leader, occupying 62%,


followed by Ufone with 21%, then Paktel with 9% and finally
Instaphone with 8%. Telenor has just launched its services,
so an exact representation of its market share cannot be
given.

Market Share (Dec 2004)

Instaphone
8%
Paktel
9%

Ufone
21% Mobilink
62%

There is a hard-hitting competition amongst the four


leading competitors: Mobilink, Paktel, Instaphone and Ufone.
These companies offer both post paid as well as pre-paid
packages.

MOBILINK

Mobilink GSM, a subsidiary of Orascom Telecom, is the


market leader with 62% of the market share in Pakistan. It
was launched in 1994, and since then it has showed
phenomenal growth from 16,385 subscribers in 1996 to

Final Project – Marketing Strategy and Policy 25


5,392,287 subscribers in January 2005. Jazz, the prepaid
package of Mobilink, has almost become a generic name
now for the prepaid packages in Pakistan, and has a very
strong successful brand name and recall.

Value added features include:-

• Various Power tools using the InfoService in the SIM, like


news, horoscopes, weather forecast, jokes, quotations,
hadith etc.
• CLI
• Call Waiting
• Voice mail
• Missed call alerts
• International SMS
o Rs.5 per SMS
• SMS colours
o Different colours can be used to SMS
• Web-SMS chat
o Free service. You can send unlimited amount of
SMS from web to any Mobilink number.
• Gup Shup corner
o Gup Shup Corner is a 24-hour open mobile talk
zone, a place where you can discuss your favourite
issues with like-minded people in a talk zone or
send and receive voice messages while
maintaining complete confidentiality. Rs.2 per
minute.
• Fun messaging
o includes picture messaging, logos, ringtones,
greeting cards etc.
• Mobile banking
• Payment solutions
• TV-SMS service
• Fax and Data

Final Project – Marketing Strategy and Policy 26


o Mobile can be connected to laptops, Notebooks,
PCs or PDA that are cabled to a GSM phone
through a PCMCIA card.
• Dedication service
o select the song you wish to dedicate and send it
with your very own personal voice message, to
any number, any phone and all at the choice of
your time and day within Pakistan, through
Mobilink IVR Service.

• Stock watch
o Continuous updates on stocks listed on the LSE
(Lahore Stock Exchange) or KSE (Karachi Stock
Exchange) anytime through Mobilink’s Stock
Watch
• Gmail
o e-mails of up to 160 alphanumeric characters can
be sent on your mobile from any email account.
You get your own G-Mail address

Mobilink has been using GSM technology for its


operations. However, network quality is extremely poor, and
has led people to do one of the three things: a) Abandon
JAZZ and switch to another connection b) Buy an additional
connection from another company, while keeping JAZZ c)
Complain, complain and complain. This is an area Warid can
tap.

Mobilink has positioned itself as a mass product,


mainly for the youth and people with middle-low income
levels. However, Mobilink has not been able to penetrate
effectively into the lower-middle income level people as
compared to its biggest current competitor Ufone. As far as
the youth is concerned, the brand image of JAZZ is very
strong indeed, so much so that the word “JAZZ” has become
a generic name for prepaid packages all over Pakistan.
Warid, on the other hand, aims to target not only the youth

Final Project – Marketing Strategy and Policy 27


but the low-middle income people, as well as the non users
of mobile phones. Snatching users away from Mobilink to
Warid Telecom would be the biggest challenge faced by the
new telecom, and would require a very high subscriber
acquisition cost (SAC).

UFONE
Ufone was launched in 2001, and its parent company is
PTCL. It currently possesses a 21% share in the market,
second to Mobilink, and its subscriber growth has increased
from 116,711 in the first year to 1,959,772 in Jan 2005.

Ufone was the only Pakistani telecom company to have


the GSM and GPRS system till the arrival of Telenor. Its
network quality is being considered better than Mobilink’s,
and many people have shifted to Ufone for that

purpose. Mobilink has lost considerable number of customers


to Ufone – its biggest current competitor. However, Ufone
has not been very successful in creating a brand name
better than JAZZ.

Value added services include:-


• CLI
• Call waiting
• Call forwarding
• Voicemail
• SMS to email
• International SMS
• Pay via SMS
• SMS chat
• Urdu info service
• SMS info service
• Ring tones
• Picture messaging
• MMS

Final Project – Marketing Strategy and Policy 28


• GPRS advantage of internet, mobile office, email address,
pocket stocks, chat
• Virtual private network (VPN)
• WAP

Ufone offers a good price package and that is the reason


why it has been able to snatch Mobilink customers. It offers
the LNO (Late night option), which is considered very popular
in Pakistan.

INSTAPHONE

Instaphone was launched in 1991, and is a subsidiary of


Millicom. It occupies a share of only 9% in the market. Its
subscriber base has grown from 20,950 in 1996, to 570,519
in January 2005. Instaphone has two prepaid packages:
InstaOne and InstaXcite. Both are offering nearly the same
product features, in terms of technology and value added
features. However, Insta has failed to position its two
packages differently. It uses the TDMA technology, which is
its biggest drawback.

Value added features include:-


•CLI
•Call Waiting
•Conference Calling
•Voicemail
•International SMS
•SMS to email
•E greetings
•M greetings
•Ringtones
•Picture messaging
•Ready2send SM
•Urdu messaging

Final Project – Marketing Strategy and Policy 29


PAKTEL GSM

Paktel is the first mobile company of Pakistan and was


launched in 1990. However it only occupies the lowest share
of 8% and has a present GSM subscriber base of 273,745.
Paktel is the only mobile company offering two different
technologies, GSM and the traditional TDMA system. Its
relaunch did gain it a considerable number of customers,
however, that amount is nowhere equivalent to that of its
competitors. Therefore, Paktel and Instaphone have been
competing with each other for market share, and are
nowhere near the market leader Mobilink. The name of its
Prepaid brand is Paktel Blue, which has a low recall and a
low brand equity.

TELENOR

Telenor, is a Norwegian company, and it acquired the


license for providing GSM services in Pakistan in April 2004,
and has launched its services. This can be rated as a major
competitor for Warid along with Mobilink.

Telenor is using the 3G technology. It has included


various features in its product as a whole. There are mixed
opinions about the Telenor service being provided at the
moment.

Value added services include:

• GPRS and MMS facilities


• Downloads
• Telenor WAP Portal keeps you up to date with the latest
happenings in news, entertainment, sport, downloads etc.
• Missed Call Alert

Final Project – Marketing Strategy and Policy 30


And all the basic services such as:
• SMS
• Conference Calling
• Caller Line Identification
• Call Waiting, Forwarding etc.
 International direct dialing

Telenor is offering unlimited validity for its incoming and


outgoing calls. It’s offering no late night option or off-peak
rates.

Telenor is using unimpressive advertising and the slogan


“European standards in Pakistan” has received mixed
opinions by the people. Also, their main ad looks more like
an ad of a car rather than that of a service. Their billboards,
however, are good and eye catching. Telenor logo is very
obscure and does not make sense to use branching out
leaves as anything representing a telecom firm.

Telenor is not playing with its original colours well. It had


used navy blue and orange initially, and now you see
streamers on the road of aqua marine and dark green colour.

Final Project – Marketing Strategy and Policy 31


SWOT ANALYSIS OF THE CURRENT CELLULAR
INDUSTRY

Strength Weaknesses Opportunities


Threats

Mobilink Brand name Network Decreases Upcoming


No of users Weak CRM in taxes competition
GSM (New technology
Experience by new
competitors)

Paktel Experience Network Decrease in Upcoming


Brand Image taxes competition
congestion
Loyal customer Value added New technology
base Weak features by
new competitors
promotion

Insta- Very Low Rates Absence of GSM Network Upcoming


Customer base GSM (Capture competition
Phone Cheap phones Weak Network market share New technology
Lack of by offering by
promotion lower prices) new competitors

Ufone Govt support Brand Name Lowering the Upcoming


Availability High prices prices competition
Network Unclear prices CRM New technology
by
new competitors

Telenor Brand name Advertising (Large potential Warid Telecom


Capital Customer market) (Existing telecom
GSM service industry)
(International
coverage)

Mobilink is indeed the biggest competitor for Warid as it


is the market leader in Pakistan and its prepaid package
JAZZ has a very strong brand name, almost generic with the
concept of “prepaid”. However, Warid should turn Mobilink’s
weakness into its strengths, i.e price and network quality.

Final Project – Marketing Strategy and Policy 32


Brand Personification
Talking of the brand, Warid Telecom is associated with:

i) An Arab who has loads of money and who wants to


rule the world on the basis of his money. He will do
any thing possible to capture the world and get it in
his grasp.

ii) An Arab who likes to have fun and party all the time.
He has money, drives the best cars around and dines
in, in the best hotels. He does not care about anyone
but himself and is very arrogant and stylish.

iii) A young rich guy who is full of energy and wants to


rule the world at any cost possible. He likes to gain
attention by performing different stunts.
MARKETING OBJECTIVES

Detailed Objectives
• Good corporate citizenship
o The GSM license will be used for the maximum
benefit of the country, its people, customers and
the business community.
• Putting customer first
o Being customer oriented is the key to the success
of any organization.
o Localisation
o Integration of marketing activities centred around
the customer
o Customer relationship management
o Effective and aggressive sales force targets and
personnel.

• Coverage

Final Project – Marketing Strategy and Policy 33


o Wide population and geographic coverage
o Excellent indoor and outdoor coverage
o High capacity network
o Efficient use of spectrum
• Service
o Maintenance of quality
o Offer unique value added services
o Content and bulk messaging services for mass
communication
o Infoservices capability
o Allowing for top-up facilities like recharging via
credit card, via another zem card holder, and via
recharge vouchers.
• Price
o Offer low, affordable prices at launch. However,
the aim is not to indulge in price competition in
the long run, and maintenance of customer base
should be on basis of quality of service.
o Low activation charge lowers barrier to adoption
o Cost based low tariffs mean customers can afford
more calls
o Future price reductions to line with cost reductions
o Low priced SMS.
• Distribution
o Make zem prepaid cards available everywhere, in
every locality of Pakistan
o Franchise as well as other local outlets

• Benefit
o Low prices, high capacity, high quality.
o Shareholders earn a reasonable return on
investment by offering low prices to many, instead
of high prices to few.
• Brand value and identity
o Create a brand name in the market to compete
with Jazz, as that has the highest recall.
o Create brand awareness by investing heavily in

Final Project – Marketing Strategy and Policy 34


promotional campaigns
o Use the 0321 code in promotional campaigns to
increase brand recall.

BCG Matrix

At the BCG Matrix, Warid falls at the category of ‘Question


marks’, because firstly it is a new launch with limited
market share, but has quite reasonable additional potential
for growth and at the same time for decline. Consequently, it
carries a considerable amount of risk element, because a
question mark, i.e. new product/service can either be
successful and become a ‘star’, or it fails and in other words
becomes a ‘dog’. So, the final outcome is never exactly
known, it can only be assumed. And this is the case with
Warid at the moment, and therefore we classify it as a
Question Mark.

Final Project – Marketing Strategy and Policy 35


Growth strategy

The growth strategy suggested for Warid Telecom is as


follows:-

Extensive geographic
coverage obligation

High investment requires


rapid revenue growth

Low activation fee and


tariffs grow customer
base and lead to rapid
revenue growth

High network utilisation Large customer base


reduces average costs and low tariff generates
and leads to lower tariffs high traffic volumes

Further invest in high


capacity network
to cope with traffic

Final Project – Marketing Strategy and Policy 36


MARKET SEGMENTATION

Warid has initially segmented the market into post and


prepaid users by
benefit, usage and income segmentation.
To further segment the market, it aims to divide the
customers according to their occupation, and hence cater to
each segment individually. These are as follows:-

• Corporate segment
o High level employees usually earning above Rs.25,
000
• SME (Small medium enterprise)
o Medium level employees usually earning below
Rs.25, 000
• SOHO (Small Office Home Office)
o Small businesses like bookshops, small petrol
pumps etc.
• Individuals
o Students

Final Project – Marketing Strategy and Policy 37


 This forms perhaps the major most target
segment for the prepaid market.
o Housewives
 These include young housewives, usually
wives of the medium level employees of
corporate, SME, and SOHO segments.

From the above-mentioned segmented groups, the target


market of Warid post paid is the Corporate and SME
segment, while that of Warid pre-paid is SOHO and
Individuals (students and housewives).

POSITIONING

Warid Telecom is positioning their product as one with


superior quality and affordable prices. By creating a youthful
image for the brand they don’t necessarily mean to restrict
their target market to just the students’ segment. The very
essence of a prepaid card is its convenience, easy to use,
customer friendliness, simplicity and transparency – and that
is exactly what Warid has to offer. They are mainly using
their slogan i.e. ‘be heard’ for positioning themselves, and
through this they are conveying the message that Warid is

Final Project – Marketing Strategy and Policy 38


the ultimate voice of the nation and in order to be heard you
have to have Warid.
They are paying importance to 0321 as their code and also
highlight that in their ad campaigns.

PRODUCT
Warid Telecom offers services that meet the income
levels and needs of the different market segments in
Pakistan.

Warid is an Arabic word meaning an Oasis in the middle


of a desert. It is pronounced as Waa-rid. The meaning of
their name directly depicts their dominant position and their
refreshing services in the vast desert of telecommunication
in Pakistan.

Value for your money


Get great value, whoever you are calling. If you are
interested in communicating within the Warid network, our
services and standard tariffs give you amazing packages
that make your life a lot simpler and easier, not only through
our low cost calls and messaging, but also excellent quality.
Not only that, but our connection offers you the best possible
value package of our interconnect with other networks.

Proper billing
With our very simple billing procedures we make sure that
you are kept up-to-date with all the math that we do at our
end. Warid offers you transparent billing and no nasty
surprises.

Final Project – Marketing Strategy and Policy 39


PROMOTION

Rates

These are the rates for the advertisements on different


Medias:

Television
Geo Rs. Rs.45000/ min

ARY Rs. Rs.45000/min

PTV Rs. Rs.35000/min

AAJ TV Rs. 25000/min

Hum TV Rs. 20000/min

Full page add for newspapers

Final Project – Marketing Strategy and Policy 40


450,000

Magazines
20000 for a full page ad

Billboards

Depending upon the location.

Modern Creators: The one in Defence at the entrance is 3.8


million per year
Telus: The one on Walton is 0.8 million per year.

Radio

FM 100
Rs.2250 per 30 seconds

Radio1
Rs. 4000 per minute

Final Project – Marketing Strategy and Policy 41


Promotional strategy

The promotion strategy is targeted to all the customers


in a way that the message is delivered very clearly. The
message portrayed includes all the inter connect charges so
the customer knows what he is actually paying. The taxes
present are also portrayed clearly on the billboards to deliver
a clear message.

The promotional campaign is aggressive and attractive


to develop and improve the brand recall. The 0321 logo is
used intensively on the billboards to develop the familiarity
and recall element for Warid Telecom.
The medium used for the promotional purposes includes:

 TV
 Radio
 News Papers
 Magazines
 Billboards
 Personal selling
 Public Relations
 Relationship management

Final Project – Marketing Strategy and Policy 42


Those channels are targeted which are being watched by
the target audiences and the advertisements are shown
aggressively. Full-page ads are given in the local newspapers
both English and Urdu. Full-page ads in different magazines
like Sunday times, Fashion week etc and big billboards are
hired for the purpose of advertisement. The choice of
billboards is on the best spots available in the market.

Personal selling is done in different banks and


corporations where the sales representatives go or do
telemarketing for purpose of new connections and to attract
the customers from existing mobile phone users. Incentives
like free Sims or golden numbers are also given on selective
basis.

The marketing campaign is very aggressive and for the


purpose of public relations, they are sponsoring musical
events and will be sponsoring event management at all
scales. This would include fashion shows, concerts, funfairs
and events like basant etc. Celebrities like cricketers and TV
and Movie stars would also be used for the purposes of
promotion.

Warid plans on bringing in new sports into Pakistan. It has


sponsored the A1 Pakistan team, which is gaining immense
popularity among the youth of Pakistan. Warid is focusing on

Final Project – Marketing Strategy and Policy 43


sponsoring those sports, which are not familiar to the people
of Pakistan like rock climbing, paint ball etc. The pre-launch
promotional campaign of Warid Telecom is not up to the
mark. The sponsoring of A1 grand prix should have been
advertised heavily and promoted aggressively to get the
consumers familiar with the name so that the element of
brand recall starts developing.

DISTRIBUTION

Network quality will play an important part in judging


who will win the telecom race amongst the existing
competitors. Therefore, while expanding the network,
network quality will not be compromised at Warid.

Initially Warid has launched in 28 major cities of


Pakistan, and with the passage of time the rural and the
urban areas of Pakistan will be covered. They advocate
franchising and availability throughout Pakistan. They should
be focusing more and more on the availability of both the
connection itself and the recharge options for the customers.
Customers come first is the strategy that they are using,
which means that the customers should be at the ease of
recharge whenever, wherever.

Final Project – Marketing Strategy and Policy 44


In this regard, the first aim is to target and provide all
those retailers, distributors and retail outlets, which currently
carry the facilities like scratch cards of other mobile
companies and then with the passage of time this network
would be strengthened.

The dealers and the retail outlets are given good


incentives and it uses the Push strategy to force and
convince dealers and retailers in selling and promoting their
brand and making the customers aware about the brand.
Currently the average margin given to a retailer for selling a
card ranges between 10-15 rupees. They advocate that this
margin should be increased to at least 25 rupees per card
(denominations of Rs.300 above) so that they are able to
push their product towards the customers successfully.

CONCLUSION

In conclusion, we would like to say that in order for


Warid Telecom to succeed in this hard hitting competition,
they’ll have to do market penetration and undertake every
opportunity to sweep away the market share from their
competitors. Although that requires a high SAV (subscriber
acquisition cost) but Warid must develop its strategies
aggressively in order to compete with the intense battle.

Final Project – Marketing Strategy and Policy 45