Advertising & Promotion Management

Project on Telecommunication Industry

Submitted to
Dr. Ehsan Ul Haq

Submitted by
Faisal Kasuri Kashif Bhatti Murwa Bhatti Nabeel Hussain Rabiya Ahmed Sadaf Shahid 2008-01-0093 2008-01-0055 2008-01-0024 2008-01-0007 2008-01-0068 2008-01-0106

LUMS-MBA 2008

DATE: 10th May 2008

Market Background
Last 5 years have seen a massive boom in telecommunication industry of Pakistan. This growth has primarily been fueled by liberal government policies and the entry of international players in the local market. The most dynamic component of this telecom upsurge has been the Cellular service providers market. This market segment has been characterized by massive infrastructure investment (leading to country wide coverage) and fierce competition (leading to tariff slashing and addition of better services). Although, Pakistani market is still far from saturation in terms of new customers and geographical areas, and growth rates still havent stabilized or tapered off but certain analyst now believe there is a need for changing the focus. Initially, this enormous growth and profitability was driven through market capture but for companies to remain profitable would now need to get more focused on understanding their customers needs and providing them with innovative solutions (which in turn shall lead to retention of their existing customers). In order to come up with the advertising campaign for Zong, we conducted a research to find a set of factors that influence a users decision making while selecting or switching a particular service provider. We started the project by developing an understanding of the current market through secondary/online research. Through this initial study, broad categories of attributes that consumers considered important vis--vis mobile operators were identified. The objective of the survey was to gauge how strongly people felt about each attribute as they were asked to rank them on a Likert scale of five. The survey also asked the respondents to rank service providers against each attribute. After conducting the primary analysis, focus shifted to achieving our secondary objective of evaluating brand perceptions. For this, a general analysis of brand data was done to come up with the current positioning of existing brands. Furthermore, three perceptual maps were developed to understand the brand positioning against the identified factors.

Target Market
Assumptions: Our advertisement campaign is based on the assumption that ACAR currently has no brand image, brand recognition or brand loyalty. Hence we are starting with a clean slate. Target Market Middle Class 32% Working Class 38% Advertising Objective: To create a need and brand loyal of ACAR

Positioning Statement
Our analysis unveiled six factors, explaining to a large extent the underlying decision criteria for the customers while choosing a particular service provider. These factors are Costs, Value Added Services, Customer Services, Social Influences (peer pressure, fashion, advertisement). We based our positioning on

Cost Design Reliability

Target Audience family household income ranging from Rs. 30,000 onwards. What is this advertising intended to achieve? The aim for the advertisement on the television to announce the new ACAR brand. Targeted at other brand switchers, the advertising is trying to compare the benefits i.e. the price and other features to the existing products in the market. The single minded proposition Economical Family Car

The Product Zong-Prepaid

We selected ZONG prepaid as our product in Telecommunication Industry. The services in this industry fall in two categories; Prepaid and Post Paid, out of which we focused on Prepaid Services only. The reason for this selection is based on the fact that Zong is a new entrant, currently having little or no brand loyalty. Therefore, it is easier to position it in any segment. Our advertisements have focused on mass market. The slogan of Zong is Sab keh do. The colors used are blue, red, yellow, orange and white. These colors are shown as circles which represent connectivity and the universe. Red is the color of blood, having strong symbolism of life and vitality. It brings focus to the essence of life and living with emphasis on survival. The red circle is the circle of life and networking. Blue color symbolizes a sensation of relaxation and encourages feelings of communication and peace and represents the professional circle. Yellow is cultural network depicting joy and happiness. The orange circle represents festivity and vitality with endurance. All these circles are on a white background which represents a clean slate for a new start. User Imagery: One of the most important decision making factor for customers is the availability of services at different locations followed by call charges and voice quality. Women prefer convenience for recharging their accounts while men ranked it lower. Men on the other hand give higher preference to cost and service availability. Young generation seems to give more priority to recharge convenience and call rates while older generation is more interested in quality of service and charges. In Lahore, people give more importance to cost issues while in Islamabad major issues are voice quality and coverage. In terms of house hold incomes and monthly spending patterns, people belonging to lower income groups ranked availability of services during rush hours/Eid plus SMS charges as the highest. This shows that these people use SMS greetings to a larger extent than higher income house holds which may employ other methods for sending greetings. Employed people put more emphasis on quality of service as compared to students who consider SMS charges more important.

Competitor Analysis
Currently there are four other players in the market; Telenor, Mobilink, Warid and Ufone. Each of these players is offering prepaid as well as post paid services to its clientele. In general analysis, it is observed that the usage of Ufone is higher in low income categories and low monthly usage categories as compared to Mobilink which is popular in higher income and higher monthly expense categories. Warid is placed in all income categories in sizeable chunks while Telenor, although present in all categories, enjoys a much smaller chunk of users. Employed people prefer Mobilink as compared to students. In geographical terms, Warid and Mobilink are the preferred choices in Lahore while Ufone & Telenor are preferred in Islamabad. According to the brand perceptions, Warid and Ufone are considered the most cheapest while Mobilink is the worst performing in this category. In value added services, Mobilink performs better but here the clear front runner is Telenor. In terms of variety of packages Ufone & Warid are highly rated. Mobilink, Warid and Telenor are perceived to have the highest quality in infrastructure and have been ranked almost equally. See Exhibit 1, 2, 3 & 4. Following is our analysis of each competitor for the prepaid service. Mobilink Jazz: The slogan of Jazz is Khul kay bolo Pakistan and the colors of Jazz are red and yellow, where red is associated with fiery heat and warmth. It can also mean danger (burning). Red is the color of blood, and as such has strong symbolism as life and vitality. It brings focus to the essence of life and living with emphasis on survival. Red is also the color of passion and lust and Yellow means joy and happiness. It is targeted at the mass market. Mobilink Jazz Brand Personality: According to our focus group, people associate Jazz with disco, party, bold, young, intense, passion, danger, contemporary and wide network coverage. Telenor Djuice: The slogan of Djuice is One place, Djuice unlimited and the colors used are black and gold, where black represents mysteriousness and provides a sense of potential and possibility. On the other hand, gold symbolizes wealth used wisely, but it is also the symbol of good health and optimism. It is targeted at the youth market. Telenor Djuice Brand Personality: Egyptian, crazy, heavy metal, crowd, hip and aggressive.

Telenor TalkShawk: The slogan of TalkShawk is A smart call and the colors used are blue, white and pink where the vibration of blue can be used to open energy flow where it is blocked. The use of blue is to relax and it encourages feelings of communication and peace. White is the color of purity and complete energy of light, standing for wholeness and completion. Pink is the color of universal love, it provides feelings of care, tenderness, self-worth, love and acceptance. This product is targeted at Mass market. Telenor TalkShawlk Brand Personality: Enjoyment, gaudy, cute, fun loving, affordable and socializing. Ufone Prepaid: The slogan of Ufone Prepaid is Its all about you and the colors used are orange and green where orange stimulates enthusiasm and creativity. Orange means vitality with endurance. Green represents self-respect and well being. It is the color of balance, signifying learning, growth and harmony. Ufone Prepaid is targeted at Youth and Family. Ufone Prepaid Brand Personality: Joyful, friends, fun, affordable, everybody, festivity and culture. Warid Zem: The slogan is We care. Its logo is blue and red; unlike all other competitors Warid does not follow the logos color scheme in its advertisements. Dark blue is used for a stable, calm and conservative feeling. Red is associated with fiery heat and warmth. It can also mean danger (burning). Red is the color of blood, and as such has strong symbolism as life and vitality. It brings focus to the essence of life and living with emphasis on survival. Red is also the color of passion and lust. Warid is targeting the mass market. Warid Zem Brand Personality: New entrant, Arabic, festive, affordable and national.

Exhibit 1: Brand Perception Data1

Attributes 1 2 Call charges SMS charges COST Availability of VAS and fun activities (e.g. Bubble Msgs, Tones, Voice Portal, Songs) Internet browsing (email, GPRS, EDGE etc.) Television phone viewing on cell

Overall Rating (107) 4.40 4.30 4.35 3.01

Mobilink 2.36 2.18 2.27 3.13

Paktel 2.77 2.82 2.79 2.53

Teleno r 3.34 3.47 3.41 3.53

Ufon e 3.74 3.77 3.75 3.20

Warid 3.75 3.79 3.77 3.47

3 4 5

3.71 2.48 3.07 3.32

3.39 2.53 3.02 3.35

2.63 2.32 2.49 2.95

3.38 3.35 3.42 3.26

3.23 2.61 3.01 3.46

3.53 2.63 3.21 3.52

VALUE ADDED SERVICES 6 Information Services News, Stocks ) (Sports,

7 8 9

Variety and flexibility of Packages (eg Night discounts, Bulk SMS rates) Attractive friends and family discount packages International roaming PRODUCT PACKAGING

4.08

2.92

3.19

3.55

3.68

3.92

4.29 3.61 3.82 4.38 4.47 4.29 4.38

3.17 3.25 3.17 3.47 3.74 2.71 3.31

2.95 2.56 2.91 2.68 2.71 2.54 2.64

3.51 3.05 3.34 3.32 3.41 3.03 3.25

3.69 3.18 3.50 3.28 3.04 2.75 3.03

3.76 3.32 3.63 3.61 3.51 2.88 3.33

1 0 1 1 1 2

Voice quality Coverage at variety of locations (Indoor, Outdoor) Network avail hours / Eid during rush

INFRASTRUCTURE
1

The data has been obtained from a consumer behavior and market research report on Cellular Service Provider selection criterias & Brand

perceptions In Urban Youths of Pakistan, 2007, written by LUMS MBA08 students.

STRENGTH

Attributes 1 4 1 5 1 6 1 7 Quality of Service at the Service Centers Call Centre performance Staff Behavior and Customer support Account recharge facilities and Convenience (Scratch card, easy load) CUSTOMER SERVICES 1 8 1 9 2 0 Most of my family members/friends use this service I feel it suits my personality I was attracted advertisement by the

Overall Rating (107) 4.06 4.06 4.09

Mobilink 3.11 3.00 3.19

Paktel 2.70 2.61 2.72

Teleno r 3.07 3.03 3.20

Ufon e 3.15 3.15 3.20

Warid 3.27 3.19 3.24

4.34 4.06 3.83 3.49 3.02 3.45

3.32 3.12 3.02 2.90 3.26 3.06

2.78 2.67 2.17 2.39 2.43 2.33

3.56 3.17 3.12 3.10 3.49 3.24

3.55 3.24 3.22 2.98 3.23 3.14

3.75 3.38 3.67 3.32 3.23 3.41

SOCIAL INFLUENCES

Exhibit 2: Perceptual Map After Sales Service VS Quality of Service

Percept Maps After Sales Service Vs Quality of Service
0.6000000

Quality of Service

MOBILINK
0.4000000

0.2000000

TELENOR

WARID

-0.5000000

-0.4000000

-0.3000000

-0.2000000

-0.1000000

0.0000000 0.0000000 -0.2000000

0.1000000

0.2000000

0.3000000

UFONE

-0.4000000

-0.6000000

-0.8000000

After Sales Service

Exhibit 3: Perceptual Map After Sales Service Vs Price Package

Perceptual Map Afte Sales Service Vs Price Packages
0.6000000

UFONE WARID

0.4000000

Price Packages

0.2000000

TELENOR

0.0000000 -0.4000000 -0.3000000 -0.2000000 -0.1000000 0.0000000 -0.2000000 0.1000000 0.2000000 0.3000000

-0.5000000

-0.4000000

-0.6000000

-0.8000000

MOBILINK

-1.0000000

After Sales Service

Exhibit 4: Perceptual Map Quality of Service Vs Price Package

Perceptual Map - Quality of Service Vs Price Package
0.6000000

WARID
0.4000000

UFONE

Price Package

0.2000000

TELENOR

0.0000000 -0.6000000 -0.4000000 -0.2000000 0.0000000 -0.2000000 0.2000000 0.4000000 0.6000000

-0.8000000

-0.4000000

-0.6000000

-0.8000000

MOBILINK

-1.0000000

Quality of Service

Creative Brief
Target Audience family household income ranging from Rs. 30,000 onwards. What is this advertising intended to achieve? The aim for the advertisement on the television to announce the new ACAR brand. Targeted at other brand switchers, the advertising is trying to compare the benefits i.e. the price and other features to the existing products in the market. The single minded proposition Economical Family CAr

5: Creative Brief (Advertisement 2)

Client China Mobile Campaign Requirement

Brand Zong

Date 10th May, 2008

One off ad to enforce brand recall Target Audience Youth age ranging from 14-25 years with family household income ranging from Rs. 100,000 onwards. Their demographics point towards a price sensitive behavior and are looking for better priced and higher quality service packages and are willing to switch brands if need be. What is this advertising intended to achieve? The aim for the advertisement is to reinforce the Zong brand. Targeted at brand loyals, the advertising is trying to increase brand recall and increase brand involvement. The single minded proposition Emotional attachment to the brand using social contexts Substantiation for the proposition Mandatory Inclusion Zong logo, Related jingle, association with China Mobile, China Mobile Logo Desired brand image Emotionally associated product with good price Suggested Media Television, internet Timing of creative work Team Leaders Signature