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Final Project of Marketing 2
Final Project of Marketing 2
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 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.
Abu Dhabi group's other successful investments in Pakistan besides Warid Telecom
includes Bank Alfalah, United Bank Limited, and Wateen Telecom.
Warid Pakistan launched its services in May 2005. Within 80 days of launch Warid
Pakistan claims to have attracted more than 1 million. users. According to Pakistan
Telecommunication Authority, currently Warid Telecom has 16.41 million subscribers as
of October 2008. It is ranked as the fourth largest operator in Pakistan. Warid Pakistan
claims it has the largest "post-paid" subscriber base in Pakistan.
Warid Telecom is the fastest growing GSM mobile company in Pakistan with over 13
million subscribers and coverage in more than 180 cities all over Pakistan. As per
company policy, Warid Telecom's cities are only included as a coverage destination when
cell sites along with a fully functional sales and service center or franchise is operational
in the area. This results in premium connectivity and the optimal experience for its loyal
users.
The Pakistani cellular market is one of the most competitive GSM environments in the
world today. In accordance with the business strategy, Warid Telecom has managed to
attain 17% of the market share in two years of operations in Pakistan. It attained this
milestone by catering to each segment of the market and broader coverage of all the
income groups. Warid Telecom products, high quality of service, affordability, and
customer support have enabled it to seize this market share from existing players in
addition to targeting new markets. The cellular operators are expected to continue such
growth as reduced tariff and increased destinations have brought mobile services within
the reach of low-income groups.
The subscribers of Warid Telecom while traveling internationally stay in touch with their
families and business through its one of the largest international roaming networks at
over 126 destinations. Warid Telecom has established this network by entering into
roaming partnerships with 179 leading international mobile service operators around the
world.
Life ka Network
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 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. With a
capital expenditure of over US $500 million, Warid Telecom has been set up to provide a
premium quality GSM service. Warid began its operations on May 23, 2005. In less than
a year, Warid have a customer base of over 4.8 million and operate in over 110 cities
across 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 Telecom’s vision is to become the primary service provider of all communication
needs of subscribers in Pakistan‚ supported by exemplary customer care. This can only be
possible by a vigilant eye on all aspects of its operations: from network quality to
innovative services. Warid Telecom’s vision include:
4. Transparency – they are always open and honest. Warid Telecom has paved the
way to expose hidden charges‚ reduce tariffs and maintain a clean reputation.
They say what they do and they do what they say.
1.0.1.6 Mission
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“To be successful telecom company in the competitive telecom industry”
1.0.1.7 Goals
1. First of all it wants to improve the customer services. Warid wants to satisfy all
the 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 doesn’t 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 other
services as well.
5. Warid Telecom’s aim is to be perceived not only as a telecommunication operator
of voice services‚ but also as a universal provider of comprehensive
communications services for both the individual and corporate customers. They
strive to provide an optimum level of support and care through their highly skilled
and motivated team of professionals‚ along with a focus on maximum network
coverage and connectivity.
Strengths:
1. They have largest postpaid network in Pakistan.
2. The staff employees of the business are well trained, experienced and qualified
3. Their boosters and towers are of superior quality than others.
4. Warid present the most powerful 64k sim. The 64k sim gives its user added
flexibility to store up to 500 numbers and 50 text messages
5. Provide backup of phone contacts
6. Heavy financial backup because of ABU DHABI Groups
7. 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 signed
another contract through which Trafco Group will utilize voice and data
communication services of the EDGE, GSM and GPRS network of Warid
Telecom.
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 competitors
3. Relatively new player.
4. Political and fianacial condition of the country.
Mobilink:
Mobilink is the largest cellular company in Pakistan. It has the largest market share and
oldest telecom company
Telenor:
It also the famous company in Pakistan. It has captures the big market share in a very
short span of time.
Ufone:
The company commenced its operations, under the brand name of Ufone, from Islamabad
on January 29, 2001. he Company further expanded its coverage and has added new cities
and highways. Ufone has network coverage in more than 4536 locations and across all
major highways of the country.
Zong
Zong is also a competitor of Warid telecom. ZONG is the first International brand of
China Mobile being launched in Pakistan
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The indirect competitors are PTCL and World Call. PTCL is the largest
telecommunications provider in Pakistan. It provide customers with telephone services
and wireless services. Worldcall Telecommunications Group began life in 1995 when
First Capital Securities Corporation Ltd started incubating Worldcall Payphones, now
Worldcall Telecom Limited. It provide wireless phones to customers.
4.0.1 Product
There 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 identified
as a leader in a wide array of mobile telecommunications services for executives and for
people 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 professionals
and to business men and women.
Also the Warid is providing the BlackBerry to its customers. Black berry from Warid
comes in two simple solutions that would empower customer with the tools customer
require to manage personal and business needs in just a few clicks. It provides internet
browsing, 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 of
market 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
Zahi
ZAHI is the postpaid brand. The aim is to position it as a premium brand that is identified
as a leader in a wide array of mobile telecommunications services for executives and for
people who want an exceptional customer experience
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All charges are exclusive of government taxes and levies including sales tax at 21% and
advance withholding tax at 10%
• All charges are exclusive of government taxes and levies including sales tax at
21% and advance withholding tax at 10%
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• FnF include 5 On-Net Numbers (Warid to Warid)
• For Postpaid connection‚ please make sure that you submit your Warid
connection form with a copy of your NIC (along with a copy of 3 paid utility bills
in case the NIC address does not match the billing address)
• Zoom Unlimited SMS offer is applicable for a subscription of Rs.210 + tax for
7500 SMS/MMS per month
• Zoom Unlimited SMS offer & Caller Tune activation charges are Rs.2 +tax
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
Warid’s Zem prepaid users. Zoom Limited and Zoom Unlimited. It also available for
Zahi.
• To activate Zoom packages just dial 100 from your Warid number
• One-time charges of Rs.2+tax apply per activation
Zem brings the only messaging and internet package in the market. With SMS Craze
subscribers 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.
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Packages
Charges
∞ The Infinity package has a limit of 2GB data. Once the user exceeds 2GB, incremental
charging at the rate of Rs.0.20 / MB will apply.
International dialing:
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Pakistan’s 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.
Ward’s pricing strategy should allow it to compete successfully with these market
leaders.
Then Warid use the competition-based pricing strategy to compete with the market
players effectively when competitors launched the same type of package. This pricing
strategy is extremely appropriate as it has allowed Warid to acquire and satisfy over 10
million customers. Moreover, the pricing must be carefully coordinated with the other
marketing 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 telecom’s network is covering 166 cities of Pakistan. It has also setup customer
services offices in all these cities. Head office of Warid telecom is in Lahore. Basically
the offices are divided into 3 regions that are; central region, whose head office is in
Lahore, south region whose head office is in Karachi and north region whose head office
is 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 7
guesthouses.
4.0.4 Promotion
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 on
every 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. The
bonus amount will be valid for 30 days since the last day of recharge within the above
mentioned period.
• Warid presents another new and attractive promotion for its valued customers.
Now Warid ZEM customers can get daily 50 FREE MINUTES on all Warid
Numbers.
• With a daily charge of Rs 15 + tax‚ customers can avail 50 free minutes between
9 a.m. and 5 p.m.
• Subscribers can also enjoy 250 free SMS/MMS in addition to the 50 free on-net
minutes 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 package
first and then zoom unlimited to avail 50 free on-net minutes everyday in addition
to 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 9:00
a.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 30
Second rates.
• Warid to Warid calls made after the 50 free minutes have been used up will also
be charged at Zem 30 Second rates.
• Free minutes are given on a daily basis and unused free minutes cannot be carried
over to the next day.
• Subscribers with insufficient balance in their account (i.e. balance is less than the
applicable daily deduction) will be converted back to their default package. i.e.
Zem 30
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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 its
reputation. for example warid offer that you get free balance if you eat meal in the
MacDonald’s.
5.0 Sales
Warid started operations in 2005 and has around 10 million customers in Pakistan. A
market share of roughly 17 percent.
Suppose
Variable cost per unit=Rs 70
Fixed cost=Rs 1000000
Expected unit sales 20000
Suppose warid wants to earn a 20% markup on sales the markup price will be given by:
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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
Unit sales
20000
If the sales don’t 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 variable
costs.the break even volume for the warid is at that number of units when the total
revenue becomes equal to the total cost.the suppose break even sales for the warid is
(150 – 70)
The suppose break even volume for the warid is 12500 units
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where they can easily visit the franchises. Every franchise has its own 50 registered
retailers. They first fill the customer acquisition form to train those 50 retailers and also
to know about what are the main factors and needs of customers which can increase the
sales.
6.0 Review
Warid had made a marketing research team which collects the feedback of customers to
know 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 collect
feedback are:
1. Questioners
2. Call centers
3. Online feedback
1. Questioners
In this they give questioners to different customers to know what they think about their
brand, what are their expectations, what they think about the packages and rates and
many more questions are asked after this they are able to analyze what is the feedback of
their customers.
2. Call centers
They also gain separately feed back of their customers on their call center service where
650 employees are available to response. Any customer can call them any time if they
have any problem with the service. Main call centers are Hotline 321 and Hotline 124. In
these call centers they can also records their messages regarding any issue.
3. Online feedback
They can also get the customer feedback on internet. Customers give feedback online in
the 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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6.0.2 Reasons for success and failure
Through this project we learned how the company can manage their marketing
management 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 a
company can enhance its image in the mind of customers. Warid main goal is to satisfy
its customers in which marketing plays an important role.
APPENDIX:
Trafco Group: Country’s leading logistics and vehicle tracking company
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 Access
Card lets you connect your laptop/notebook to the Warid network. It sends and receives
data via mobile networks. Therefore‚ it allows you to take full advantage of accessing the
Internet.
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