final project of marketing 2

8/9/2019 Final Project of Marketing 2

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Table Of Contents

1.0.1.7 Goals .......................................................................................................................5

1.0 Introduction

Warid Telecom takes pride in being backed by the Abu Dhabi Group, one of the largest

groups in the Middle East and the single largest foreign investor group in Pakistan. It hasa diversified business interest in the institutions that have enjoyed commercial success asa result of its strong financial resources and extensive management expertise.

Abu Dhabi group's other successful investments in Pakistan besides Warid Telecomincludes Bank Alfalah, United Bank Limited, and Wateen Telecom.

1.0.1 Brief introduction of company

Warid Pakistan launched its services in May 2005. Within 80 days of launch WaridPakistan claims to have attracted more than 1 million. users. According to PakistanTelecommunication Authority, currently Warid Telecom has 16.41 million subscribers asof October 2008. It is ranked as the fourth largest operator in Pakistan. Warid Pakistanclaims it has the largest "post-paid" subscriber base in Pakistan.

Warid Telecom is the fastest growing GSM mobile company in Pakistan with over 13million subscribers and coverage in more than 180 cities all over Pakistan. As percompany policy, Warid Telecom's cities are only included as a coverage destination whencell sites along with a fully functional sales and service center or franchise is operationalin the area. This results in premium connectivity and the optimal experience for its loyalusers.

The Pakistani cellular market is one of the most competitive GSM environments in theworld today. In accordance with the business strategy, Warid Telecom has managed toattain 17% of the market share in two years of operations in Pakistan. It attained thismilestone by catering to each segment of the market and broader coverage of all theincome groups. Warid Telecom products, high quality of service, affordability, andcustomer support have enabled it to seize this market share from existing players inaddition to targeting new markets. The cellular operators are expected to continue such


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growth as reduced tariff and increased destinations have brought mobile services withinthe reach of low-income groups.

The subscribers of Warid Telecom while traveling internationally stay in touch with theirfamilies and business through its one of the largest international roaming networks at

over 126 destinations. Warid Telecom has established this network by entering intoroaming partnerships with 179 leading international mobile service operators around theworld.

1.0.1.1 Company name

Waird Telecom Limited

1.0.1.2 Company Logo

Life ka Network

1.0.1.3 Company History

Warid Telecom takes pride in being backed by the Abu Dhabi Group, one of the largestgroups in the Middle East and the single largest foreign investor group in Pakistan. It hasa diversified business interest in the institutions that have enjoyed commercial success asa result of its strong financial resources and extensive management expertise. With acapital expenditure of over US $500 million, Warid Telecom has been set up to provide apremium quality GSM service. Warid began its operations on May 23, 2005. In less thana year, Warid have a customer base of over 4.8 million and operate in over 110 citiesacross Pakistan, providing quality service to our customers.

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1.0.1.4 Company Hierarchy

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1.0.1.5 Vision Statement

Warid Telecoms vision is to become the primary service provider of all communicationneeds of subscribers in Pakistan supported by exemplary customer care. This can only bepossible by a vigilant eye on all aspects of its operations: from network quality toinnovative services. Warid Telecoms vision include:

1. Quality Investments in an organization must be spent effectively to gaintargeted success. Warid Telecom has an uncompromising commitment to qualityin this regard. That is why they spare no efforts in pursuing the best innetwork services products and HR.

2. Simplicity The industry trend is to complicate all aspects of

telecommunications to intimidate the user into caring behavior. Warid Telecomencourages subscribers to be bold knowing that they are getting what they askedfor. They keep things simple easy to understand and even easier to use.

3. Innovation For years people complained of the same things on mobiles. AtWarid Telecom they constantly look to make the communication experiencedifferent by doing things in a better way. That is why the telecommunicationsmarket is totally different from three years ago.

4. Transparency they are always open and honest. Warid Telecom has paved theway to expose hidden charges reduce tariffs and maintain a clean reputation.

They say what they do and they do what they say.

5. Customer-Friendliness they enjoy working and succeeding together by building close relationships. While they have a sense of purpose in theiroperations they also have a strong culture that demonstrates to customers that.Warid Telecom considers the needs of customers first.

1.0.1.6 Mission

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To be successful telecom company in the competitive telecom industry

1.0.1.7 Goals

Its major focus is on achieving the following goals

1. First of all it wants to improve the customer services. Warid wants to satisfy allthe customers by fulfilling their needs and demands.

2. It always tries to build a strong and wide network.3. It also wants to provide good quality services to the customers.4. It doesnt want to stick to only GSM but it wants to provide and increase its

services like recently they have launched Wateen, and they are providing otherservices as well.

5. Warid Telecoms aim is to be perceived not only as a telecommunication operatorof voice services but also as a universal provider of comprehensive

communications services for both the individual and corporate customers. Theystrive to provide an optimum level of support and care through their highly skilledand motivated team of professionals along with a focus on maximum networkcoverage and connectivity.

2.0 SWOT Analysis:

Strengths:1. They have largest postpaid network in Pakistan.2. The staff employees of the business are well trained, experienced and qualified3. Their boosters and towers are of superior quality than others.

4. Warid present the most powerful 64k sim. The 64k sim gives its user addedflexibility to store up to 500 numbers and 50 text messages

5. Provide backup of phone contacts6. Heavy financial backup because of ABU DHABI Groups7. Warid Access Card

Weaknesses:1. Advertisement is not attractive to customers.2. They require more to establish their booster and towers as compared to

competitors.3. Little market share.

4. The prices of their packages are relatively high as compared to competitors.5. Web site is not customer friendly.6. Slowest GPRS services.

Opportunities:1. Good marketing campaign might be their opportunity if they properly utilize and

analyze it.2. The stage show THE PHANTOM OF OPERA organized by Warid and CDA.

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3. Warid Telecom (Pvt.) Ltd. and Trafco Group renewed their agreement and signedanother contract through which Trafco Group will utilize voice and datacommunication services of the EDGE, GSM and GPRS network of WaridTelecom.

4. Covering areas like northern areas Kashmir and remote areas

Threats:1. If they do not effort for their low market share it will become threat.2. Severe competition from direct competitors3. Relatively new player.4. Political and fianacial condition of the country.

3.0 Market Plan

3.0.1 Competitor AnalysisWarid have a number of direct and indirect competitors which is discussed below. But ofall the competitors Warid views Telenor as his major competitor because the launchingtime both the companies are same. Further their market segmentation and targetmarketing are somewhat similar to each other.

3.0.1.2 Direct competitors

Mobilink:

Mobilink is the largest cellular company in Pakistan. It has the largest market share andoldest telecom company

Telenor:

It also the famous company in Pakistan. It has captures the big market share in a veryshort span of time.

Ufone:

The company commenced its operations, under the brand name of Ufone, from Islamabadon January 29, 2001. he Company further expanded its coverage and has added new citiesand highways. Ufone has network coverage in more than 4536 locations and across allmajor highways of the country.

ZongZong is also a competitor of Warid telecom. ZONG is the first International brand ofChina Mobile being launched in Pakistan

3.0.1.3 Indirect Competitors

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The indirect competitors are PTCL and World Call. PTCL is the largesttelecommunications provider in Pakistan. It provide customers with telephone servicesand wireless services. Worldcall Telecommunications Group began life in 1995 whenFirst Capital Securities Corporation Ltd started incubating Worldcall Payphones, nowWorldcall Telecom Limited. It provide wireless phones to customers.

3.0.2 Supply ChainInbound logistics deal with the suppliers. Warid telecom has its own suppliers fromwhich they take raw materials of booster and antennas. Also they have suppliers thatprovide them with Sims.Warid right now is using the mode of intensive distribution as to get the availability ofscratch cards in every introduced city and narrow town relate to city as well. Warid isavailable in almost all retail outlets in the coverage areas. Almost every region or area hasa franchise of Warid.

3.0.3 Market Segments

Basically Warid has divided his segments into two categories i.e. DemographicSegmentation and Geographic Segmentation.

3.0.3.1 Demographic SegmentationThey are using the demographic segmentation which includes variables such as age,income, occupation etc. Warid have divided their segments which includes businesspeople and moderate and lower income level people. Further they have divided theirsegments to people of all ages.

3.0.3.2 Geographic SegmentationThey have also segmented their markets geographically. They have divided their markets

into urban areas and rural areas and design sometimes different and sometimes samepackages for their satisfaction. They have also segmented their markets to city all overPakistan.

3.0.4 Target MarketTo facilitate the people like business man and high income level people Warid isproviding them a postpaid package which is Zahi. While Zem is ore is for people ofany income category. Zem is a complete form of product which contains differentpackages for youngsters, women and people of all ages.

4.0 Product PlanProduct Planning is the ongoing process of identifying and articulating marketrequirements that define a products feature set. Product plan describe about the product acompany offer, its prices, place and promotion the company is doing for it.

4.0.1 ProductThere are two basic products of Warid

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4.0.1.1 Zahi

ZAHI is the postpaid brand. The aim is to position it as a premium brand that is identifiedas a leader in a wide array of mobile telecommunications services for executives and forpeople who want an exceptional customer experience.The strategy is to create a brand

that appeals to a wide range of market segments from the youth to young professionalsand to business men and women.Also the Warid is providing the BlackBerry to its customers. Black berry from Waridcomes in two simple solutions that would empower customer with the tools customerrequire to manage personal and business needs in just a few clicks. It provides internetbrowsing, attachments like pictures, Excel, Pdf and messenging etc

4.0.1.2 Zem

Zem is the prepaid brand. The strategy is to create a brand that appeals to a wide range ofmarket segments from the youth to young professionals and to ordinary men and women.Zem caters to people belonging to all fields of life in urban Pakistan.

Zoom is the package of Zem and Zahi in which people can enjoy the best ever SMS &MMS rates as low as Rs.0.3, on any mobile network (on-net & off-net) in Pakistan.Especially designed while keeping the affordability in mind of customers.

4.0.2 Price

ZahiZAHI is the postpaid brand. The aim is to position it as a premium brand that is identifiedas a leader in a wide array of mobile telecommunications services for executives and forpeople who want an exceptional customer experience

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All charges are exclusive of government taxes and levies including sales tax at 21% andadvance withholding tax at 10%

Terms & Conditions

All charges are exclusive of government taxes and levies including sales tax at21% and advance withholding tax at 10%

Prices are subject to change at Warids discretion

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FnF include 5 On-Net Numbers (Warid to Warid)

Postpaid tariff rates are applicable on 30 seconds billing pulse.

MMS is charged both for receiving and sending

MMS unit is a message of size 100kb off-net and 250kb on-net

Mobile Internet unit is per 64KB

For Postpaid connection please make sure that you submit your Waridconnection form with a copy of your NIC (along with a copy of 3 paid utility billsin case the NIC address does not match the billing address)

Zoom Unlimited SMS offer is applicable for a subscription of Rs.210 + tax for7500 SMS/MMS per month

Zoom Unlimited SMS offer & Caller Tune activation charges are Rs.2 +tax

Weekend rates are from 12:00 AM (Sat) to 11:59 PM (Sun)

Zem

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All charges are exclusive of government taxes and levies including sales tax at 21%

Zoom package

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Warid has launched the unlimited sms package under Zem first time in 2005. It was an

instant hit as mobile users were able to send unlimited SMS/MMS to any network in

Pakistan for just 5 PKR a day. These days there are two Zoom packages available for the

Warids Zem prepaid users. Zoom Limited and Zoom Unlimited. It also available for

Zahi.

Zoom SMS/MMS Rates

Package Offer Charges*

Zoom Limited 25 SMS/MMS Rs.3+tax per day

Zoom Unlimited 250 SMS/MMS Rs.7+tax per day

How to Activate Zoom

To activate Zoom packages just dial 100 from your Warid number One-time charges of Rs.2+tax apply per activation

Prices of Zem Pakistan Package

ZEM Pakistan is a daily subscription based package offering 50 on-net minutes,

500 SMS/MMS between 9am-9pm

Daily subscription charges are Rs.19.96.

You can utilize the 50 on-net minutes as you seem fit. You can consume them in

one call equaling 50 minutes or multiple calls with combined duration of 50 minutes.

SMS/MMS can be sent on both on-net (Warid-Warid) & off-net (Other mobilenumbers)

Customers of all Warid Packages can avail this offer

This is a daily subscription based package, all minutes/SMS/MMS would have to

be consumed within 9am-9pm.Unconsumed free on-net minutes and free SMS/MMS

will not be carried forward

Sms Craze Offer

Zem brings the only messaging and internet package in the market. With SMS Crazesubscribers can get up to 2,000 SMS/MMS to any number across Pakistan & 10MB of

Mobile Internet for a monthly subscription of Rs.150 inclusive of all taxes.

All need to do to subscribe is call 100 and select SMS Craze.

Warid Access Card

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Packages

Special Bulk GPRS (Data Card) packages:

Postpaid Packages Line Rent Free Units Rate

Package GPRS80 Rs. 80* 6MB Rs.12/Mb

Package - GPRS120 Rs. 120* 15MB Rs.10/Mb

Package - GPRS200 Rs. 200* 20MB Rs.8/Mb

Package - GPRS240 Rs. 240* 30 MB Rs.6/Mb

Package - GPRS Infinity Rs. 500* Unlimited Rs.0/Mb

Note: * Government taxes are additional which are 21%

Charges

Card Price SIM Cost Security

Rs. 7500* Nill Rs. 500

*Inclusive of all taxes

The Infinity package has a limit of 2GB data. Once the user exceeds 2GB, incrementalcharging at the rate of Rs.0.20 / MB will apply.

Blackberry Solutions Subscription Charges

Black Berry Subscriptions Charges Charges*

BlackBerry Enterprise Solutions (BES) Rs.1500/Month

BlackBerry Internet Soutions (BIS) Rs. 1000/Month

International dialing:

Warid is offering is different prices for the international dialing.

4.0.2.1 Pricing Formulation

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Pakistans telecommunication is a fiercely competitive industry. Warid is positioned

primarily as a provider of extremely economic services. However, Mobilink, Telenor and

Ufone who are the current market leaders are also offering low rates to the customers.

Wards pricing strategy should allow it to compete successfully with these market

leaders.

Then Warid use the competition-based pricing strategy to compete with the marketplayers effectively when competitors launched the same type of package. This pricingstrategy is extremely appropriate as it has allowed Warid to acquire and satisfy over 10million customers. Moreover, the pricing must be carefully coordinated with the othermarketing mix elements in order to maximize profits.

The new product price strategy Warid is using is market skimming pricing offering high

price for the package which is new in the market to get maximum revenue from the

segments willing to pay the high price.

4.0.3 Place

Warid telecoms network is covering 166 cities of Pakistan. It has also setup customerservices offices in all these cities. Head office of Warid telecom is in Lahore. Basicallythe offices are divided into 3 regions that are; central region, whose head office is inLahore, south region whose head office is in Karachi and north region whose head officeis in Islamabad.

It has a large number of business centers and franchises all over the country. Other than

that it owns 13 MSE (mobile switching engines), 2 call centers, 4 warehouses and 7guesthouses.

4.0.4 Promotion

Warid is currently following a very effective integrated marketing communications mix.The key factor contributing to the success of this IMC mix is that Warids promotionsbudget is the biggest as compared to any other competitor. Its current promotion budgetis in millions. Warid use different Medias to promote its services.

Advertisement:

Advertisement is given on different medias television, radio, newspapers billboards.Every targeted segment have different ads.

Sales promotion:

Warid offers different sales promotion time by time . Warid is offering 20% bonus onevery recharge! If a prepaid zem subscriber tops up his/her zem account with Scratch-card of any denomination, he/she will simply enjoy 20% bonus every time he/she

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recharges. This offer is valid from 7th October and will continue till further notice. Thebonus amount will be valid for 30 days since the last day of recharge within the abovementioned period.

Now get 50 FREE MINUTES everyday!

Warid presents another new and attractive promotion for its valued customers.Now Warid ZEM customers can get daily 50 FREE MINUTES on all WaridNumbers.

With a daily charge of Rs 15 + tax customers can avail 50 free minutes between9 a.m. and 5 p.m.

Subscribers can also enjoy 250 free SMS/MMS in addition to the 50 free on-netminutes at a daily charge of Rs. 20 + tax

To subscribe to this package simply:

Dial 100 for free and get the package activated

To activate Zoom unlimited with the package; dial 100 and activate the packagefirst and then zoom unlimited to avail 50 free on-net minutes everyday in additionto 250 SMS/MMS

Terms & Conditions:

One time package activation charge is Rs. 10 + tax

50 free minutes are only applicable for Warid to Warid calls made between 9:00a.m. and 5:00 p.m.

All calls to non Warid numbers will be charged at Zem 30 Second rates.

Warid to Warid calls between 5:00 p.m. and 9:00 a.m. will be charged at Zem 30Second rates.

Warid to Warid calls made after the 50 free minutes have been used up will alsobe charged at Zem 30 Second rates.

Free minutes are given on a daily basis and unused free minutes cannot be carriedover to the next day.

Subscribers with insufficient balance in their account (i.e. balance is less than theapplicable daily deduction) will be converted back to their default package. i.e.Zem 30

Only Zoom Unlimited can be used with Zem 50 Free minutes

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Trade offer:warid also offer trade benefits that if the distributor take the specific number of stock

(sims)then they are given incentives according to the stock they buy.Co brand promotion:By using the promotion of some popular brands warid can enhance the sales by using itsreputation. for example warid offer that you get free balance if you eat meal in theMacDonalds.

Events and experiences:Warid sponsored different events and festivals to create special brand related interactions.Some days before warid has sponsored opera play with the collaboration of CDA.Direct marketing:

Warid is also using direct marketing as their communication channel. When it offer some

new package or other offers or special discounts it sends messages to its customers toinform them about new deals.

Personal selling:Warid also organize fairs and trade shows at some specific places in universities,collagesin which the sales representatives have face to face interactions with the customers.

5.0 Sales

Warid started operations in 2005 and has around 10 million customers in Pakistan. Amarket share of roughly 17 percent.

There are hypothetical values for the warids company cost

SupposeVariable cost per unit=Rs 70Fixed cost=Rs 1000000Expected unit sales 20000

Warid unit cost is given by

Unit cost=variable cost + fixed cost = 40 + 1000000 = Rs 120

Unit sales 20000

Suppose warid wants to earn a 20% markup on sales the markup price will be given by:

Markup price = unit cost = 120 = Rs 150

(1- desired return on sales) (1-.20)

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Target-return price:

Suppose the warid has invested Rs 3000000 and wants to set a price to earn 20% ROI.the

target return price is

Target return price =unit cost +desired return * invested capital

Unit sales

= 120 + .20 * 3000000 = Rs 150

20000

If the sales dont reach 20000 units the warid prepare a break even chart to learn what

would happen at other sales level.total cost equal the sum of fixed costs and variablecosts.the break even volume for the warid is at that number of units when the totalrevenue becomes equal to the total cost.the suppose break even sales for the warid is

Break even volume = fixed cost

(price variable cost)

= 1000000 = 12500 units

(150 70)

The suppose break even volume for the warid is 12500 units

5.0.1 Sales Methodology

Sales Methodology used by Warid depends upon two ways:1. Trade channels2. Business centers

5.0.1.1 Trade channels:Warid trade channels are their franchises which are located at different places. Waridmake their franchises mainly on such places where people live in more population from

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where they can easily visit the franchises. Every franchise has its own 50 registeredretailers. They first fill the customer acquisition form to train those 50 retailers and alsoto know about what are the main factors and needs of customers which can increase thesales.

5.0.1.2 Business centers:Business centers are places where their stock is kept. All Sims are developed their.Further the detail record of every customer is stored their.

6.0 Review

6.0.1 Customer feedback

Warid had made a marketing research team which collects the feedback of customers toknow what their requirements are. Firstly they introduce their new packages and then

collect the feedback with the help of this team. The ways which Warid use to collectfeedback are:

1. Questioners2. Call centers3. Online feedback

1. QuestionersIn this they give questioners to different customers to know what they think about theirbrand, what are their expectations, what they think about the packages and rates andmany more questions are asked after this they are able to analyze what is the feedback oftheir customers.

2. Call centersThey also gain separately feed back of their customers on their call center service where650 employees are available to response. Any customer can call them any time if theyhave any problem with the service. Main call centers are Hotline 321 and Hotline 124. Inthese call centers they can also records their messages regarding any issue.

3. Online feedbackThey can also get the customer feedback on internet. Customers give feedback online inthe form of suggestions, complains, and they also tell whether they are satisfy or not.

The way which Warid used more to get the customer feed back is through call centers.

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6.0.2Reasons for success and failure

Reasons for success1. Very successful as far as their objective is concered. Warid is launce but moving

very slowly and gradually to achieve their objectives.

2. Market potential is captured very soon3. Good calling rates and packages4. Warid is launched in many cities.5. Biggest share of post paid subscribers.

Reasons for failure1. Slow expansion time.2. Dont give more package as competitors.3. Their marketing is not good and attractive

6.0.3 Lesson learnedMarketing is a significant aspect of any business in todays highly competitive worldbecause those companies who only look to product enhancement will find themselves farand away behind the power curve.

Through this project we learned how the company can manage their marketingmanagement to create a image in the market. It informed us that marketing of a brand or product plays an important role in the success of a product. Through marketing acompany can enhance its image in the mind of customers. Warid main goal is to satisfyits customers in which marketing plays an important role.

APPENDIX:Trafco Group: Countrys leading logistics and vehicle tracking company

IMC: stands for Integrated Marketing Communications. It means to use a combination ofmedia like T.V, newspaper and billboards.

Warid Access Card : Warid Access (wireless) Data Card is the fastest most flexible way

for any laptop user to stay in constant connection while on the move. The Warid AccessCard lets you connect your laptop/notebook to the Warid network. It sends and receivesdata via mobile networks. Therefore it allows you to take full advantage of accessing theInternet.

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final project of marketing 2

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