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Every organization, whether it is a multinational, private business, government offices, etc.depend on its people. These people working as General Managers must be trained and kept motivated, offered good working environment and must be acknowledged at work.
Telecom industry is growing in Pakistan, with new companies getting license the competition is tough as a result the consumer is getting benefit and enjoying cheap call rates. With a population of 15 million countries, telecom is one of the best revenue generated industry. As voice over IP, web conferencing and online video sessions are becoming popular these companies have bright future ahead.
Telecom International which stands as a prominent name in Telecom industry. In this report we discussed all relevant topics for covering a formal report. This report reviews the marketing of WARID; I give a brief history of the company and tell about the achievements and growths of WARID. It put light on the whole organization specifically its marketing department and the activities ongoing in its marketing department. This report include brief introduction of Warid and its marketing strategies to gain the market share and all its depth analysis which we think should be consider necessary to analysis of such a big company. By our evaluation we have found that WARID Telecom is lacking some activities which are mostly its communication to its customers. At the end of this report i provide implementation of strategies for Warid. .
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TABLE OF CONTENTS
Particulars Introduction Marketing strategy process WARID WARIDs mission, purpose and vision WARID Zem and Zahi Marketing strategies of WARID SWOT Analysis Conclusion & Recommendations References
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Marketing Strategy
Introduction:
concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.
A marketing strategy should be centered on the key concept that customer satisfaction is the main goal, and is most effective when it is an integral component of corporate strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate strategies, corporate missions, and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. A marketing strategy is a map that gets us and our business where we want to go. It gives us a plan to promote our business, target the right client, and allocate the resources wisely.They say that
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Trying to grow business without having a plan is just like going on road trip with out a map
A marketing strategy can serve as the foundation of a marketing plan. A marketing plan contains a set of specific actions required to successfully implement a marketing strategy. For example: "Use a low cost product to attract consumers. Once our organization, via our low cost product, has established a relationship with consumers, our organization will sell additional, higher-margin products and services that enhance the consumer's interaction with the low-cost product or service."
Marketing strategy consists of the analysis, strategy development, and implementation activities in: Developing a vision about the market(s) of interest to the organization, selecting market target strategies, setting objectives, and developing, implementing, and managing the marketing program positioning strategies designed to meet the value requirements of the customers in each market target
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Analyzing product-markets and forecasting how they will change in the future are vital to business and marketing planning. Decisions to enter new productmarkets, how to serve existing product-markets, and when to exist in unattractive product-markets are critical strategic choices.
Evaluation of competitors strategies, strengths, limitations and plans is also a key aspect of the situation analysis. It is important to identify both existing and potential competitors. Competitor analysis includes evaluating each key competitor.
2) Segmenting Markets:
Market segmentation looks at the nature and extent of diversity of buyers needs and wants in a market. It offers an opportunity for an organization to focus in business capabilities on the requirements of one or more groups of buyers. The objective of segmentation is to examine differences in needs and wants and to identify the segments (sub-groups) within the product-market of interest.
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The marketing program (mix) strategies implement the positioning strategy. The objective is to achieve favorable positioning while allocating financial, human, and production resources to markets, customers, and products as effectively and efficiently as possible.
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Case Study
INTRODUCTION
Warid Telecom is one of the biggest cellular service providers in Pakistan. Warid is an international company that is joint venture of Abu Dhabi Group and Sing Tel Group. In this joint venture SingTel acquired 30% percent equity stake and remaining acquired by Abu Dhabi Group. This partnership is part of a strategy to support Warid Telecoms continued growth and to enhance its market position. The Dhabi Group is a multinational company based in the UAE, which owns and operates a wide range of business concerns that are spread across 3 different continents. It has a diversified business interest in the institutions that have enjoyed commercial success as a result of its strong financial resources and extensive management expertise. The Abu Dhabi Group's major investments are in the following sectors: Telecommunications Hospitality services Property development Oil exploration and supplies Banking and financial services
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Automobile industries
WARIDs VISION:
Be a part of largest post paid cellular base in Pakistan and to become the leader in national communications arena with a strong international presence Warid Telecom started its operation in May 2005 from Pakistan. Warid Telecom International LLC, purchased a license for operating a nationwide mobile telephony network, (WLL) and long distance international (LDI) for $291 million US dollars. Within 80 days of launch Warid attracted more than 1 million users. Currently the network has around 7.6 million subscribers. In Warid business strategy four things are: Competitiveness :differentiated in value added aspects Cost Leadership: by providing less price service/product Rapid Response of company :when need identify they response to it Customer care by providing quality service: The pre-paid segment is branded and marketed as Zem Pre-Paid. Zahi-Post-paid and Zem Pre-paid user enjoy various value added services (VAS), such as SMS, MMS, GPRS, 64K SIM and a host of other features. However International Roaming is only available to its Zahi (post-paid) users.
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Warid telecom is introducing two types of product in all over the Pakistan1. Zem Prepaid 2. Zahi Post Paid
Zem Prepaid:
Zem is a prepaid connection provided by Warid telecom. Under this connection Under this customer obtain a digital SIM and transfer this SIM to his name.
connect6ion there is no need of any security or payment of line rent. The customers purchase prepaid scratch cards and load it into its Warid SIM at any time during a period of one year. The customers of Zem connections are free to load balances at any time and amount of their own choice.
Zahi:
Zahi is a post-paid connection provided by the Warid telecom. In this connection, the customer has to pay line rent plus the charges of call every month. In this connection
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customer is billed every month. In this connection Warid, telecom has four further categories Silver Gold Diamond Platinum
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Tele density in area to be segmented So according to these above mentioned factors Warid divide its marketing strategy into five segments which are Postpaid Segment Masses Segment Female Segment Youth Segment Corporate Segment
Postpaid Segment:
Postpaid Segment is the one which includes individuals with good income and usage more than that of prepaid customers. Postpaid customers Pay bill at the end of month depending on the service used. Pay specific amount in line rent every month, no matter they use service or not. Enjoy better range of value added services than prepaid customers. Postpaid Segmentation Section designs marketing activities to better satisfy the needs of Postpaid consumers.
Masses Segment:
Masses Segment is the biggest segments involving most no of people. Masses segmentation section develops marketing ideas and activities to perform, so that masses customers enjoy maximum benefits. Consumers from masses segments use relatively less. Masses customers Pay before using the service. Enjoy basic and VAS services Have less brand loyalty in most cases.
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Female Segment:
Importance of role of females cannot be overlooked in this modern era. Thats why Warid Telecom has also developed females segment as a separate segment. The role of Female segmentation section is to develop ideas that would entertain female population in Pakistan. Currently ongoing Zem Baton ke committee Campaign promoted by Bushra Ansari is such an example.
Youth Segment:
Youth drives a nation; similarly, youth is taken by cellular companies as a segment which can drive other segments as well and affect trends of customers of other segments too. If the youth is targeted in better way, lot of customers can be gained. Warid Floodlight Tape Ball tournament for youth segment is one of such examples.
Corporate Segment:
Corporate segment is niche segment which can be source of great revenue for organization. Corporate Segmentation section develops idea that can provide maximum support and facilities to their most profitable segment. Ongoing Black Berry Campaign is one of its examples. Corporate segments are provided with Best possible VAS Better rates Security and Network Solutions Corporate Series for employees
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Product Positioning:
Warid positioned itself around simplicity and subtlety, and attracted subscribers more through word of mouth about its service quality than with advertising. Unfortunately, Warid wasnt able to capitalize on its great start, and hasnt been able to position itself as a premium brand in the industry; rather, its attempt to characterize itself as a service provider that offers the best rates has led Warid to be associated with cheap affordability. Warid consider itself at its growth stage and it has 18% of market share and it can be next adoption for youth.
Pricing Strategy:
When warid starts it offering more value and quality rather than reducing the pricing of its products and its uses both demand-pull and demand-push strategies for penetrating the market. Its innovative strategies like 1 second billing and 30 second billing are the strategies to capture the large share of market. Now warid focus on reducing the prices of its products to increase the market share of telecom industry. As now there is always good mouth for warid thus warid can increase its market by reducing the prices of its products.
Reduction in Prices
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SWOT Analysis
In order to find what are the strengths, weaknesses, opportunities and threats faced by Warid Telecom International. The SWOT Analysis of Warid Telecom is given below.
Strengths of Warid:
Superior product quality for customers Better customer relationship than competitors Extra features and services Committed and efficient staff Strong financial base Products innovations ongoing Good reputation among customers Good packages according to the target market Management is rational and understanding the situation Low price as compared to quality provided
Weaknesses of Warid:
Less time in market as compared to major competitors Less coverage as compared to major competitors Less experienced employees than competitors Not able to capitalize on start
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Cost Leadership:
Cost leadership of Warid is applied by offering lowest cost packages to its customers at minimum possible level; they have attracted 7.5 million customers because of this strategy. Now they are trying to get more profit after investing a lot they cant low prices further.
Differentiation:
Differentiation by Warid implemented by showing cultural integration as it is owned by UAE group so people are more valuing it as Muslims. Warid is offering special discounts offers on calls of Arab states. This aspect differentiates Warid from other companies. It has provided billing updating system which is not given by any other company.
Segmentation:
Market Segmentation (Focused) by Warid by catering needs of people. Hay created image by tag line we care for everybody they will provide best quality service. They given post paid packages for middle class Zem and for elite business class they introduce Zehi.Thats showing division of market by Warid into distinct parts.
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To survive in the long run Warid is doing strategic partnership with Nokia and Ericson. Its like that they cant manage their network by their own. It seems they cant do research of market so they are taking help from international companies that are already functioning in the Pakistan.
Warid is increasing its customer base, but not considering quality of their network. So it will create problems for them in the future. Customer complaints are not fulfilled by the Warid. There is no rapid response to the need of the customers. Warid is not very successful globallyWarid is now unable to continue its cost leadership strategy. It cant
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low its prices any more. At the operational point Warid is not good. It seems it is going to be sold. So in the long run it is difficult for the Warid to survive. Changing of its corporate slogan gave the idea that it is not any more customer oriented company. Sales representatives target all the untapped markets and niches, by using WARIDs current products. Revenue objectivity should be given high attention, and it should increase by 40% every year (for the next 2 years.) Product line should be extended by offering new service for the customers. Warid is lacking in communication with its customers so it should focus on this activity. More Regional Departmentalization should be there for detailed marketing analysis. There should be decentralization decision making and employee should be encouraged for their opinions. More budget and resources should be allocated to advertisement and sales promotion. Role of R&D should be increased to help Target markets most effectively To get knowledge about consumers table and preference as.
Reference:
Companys website - www.waridtel.com.pk Company Annual Reports Magazine Business Economist Google.com Economic survey of Pakistan PTA Reports Wikipedia.com
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