Warid Telecom MBA Report

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Transcript of Warid Telecom MBA Report

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Date of Submission: 22-05-2009

Visiting Faculty

Member

Department of Life Sciences

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To my loving Parents & Friends

Dedication

Dedication

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Acknowledgement

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All praises for ALLAH, the most Beneficent, the most Merciful, who always gave me courage to accept challenges and helps me to successfully achieve my goals

I would like to thank following people for their valuable help

Mr .Attique-Ur-Rehman & Mr.Khawar gave me some important tips during this project.

Mr.Asim Shahzad gave me the information about good websites.

Mr.Arslan for their references

Finally I wish to express my heartiest gratitude and profound regards to my Parents for their moral support and encouragement during my research work.

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5-B, Model TownLahore

May 22, 2009

Mr.Attique –Ur-RehmanVisiting Faculty MemberDepartment of Life SciencesUniversity of Veterinary and Animal Sciences (UVAS)5, Outfall RoadLahore

Dear Mr.Rehman

Thank you very much for giving me a golden opportunity to prepare a project on such an informational telecom company that is Warid Telecom Pakistan.

In this project I highlight the company’s background, organizational structure, functions, services and products which they are offering to their valuable customers and their current market position. In this project, check out the company’s performance through some theories implementation i.e. Marketing Mix., Swot, Pest, Porter’s five forces and IMC.

Preparing of this report was a great learning experience for me, i have learned a lot, while preparing this report and i hope to get more such opportunities in future.

Thanking you

Yours sincerelyUVAS

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Mr.Muhammad Shahid MBA, BSemester 2, 65

Table of Contents

INTRODUCTION......................................................................................................................9

WHAT IS TELECOMMUNICATION?..................................................................................10

HISTORY OF TELECOMMUNICATION.............................................................................11

HISTORY OF TELECOMMUNICATION IN PAKISTAN...................................................12

IMPACT OF REFORMS ON MOBILE PHONE INDUSTRY IN PAKISAN ......................13

INTRODUCTION OF CELLULAR COMPANIES................................................................14

WARID TELECOM................................................................................................................16

INTRODUCTION.................................................................................................................................................................17

HISTORY.............................................................................................................................................................................17

BRAND VALUES:...............................................................................................................................................................19

MESSAGE FROM THE CHAIRMAN...........................................................................................20

WARID TELECOM TEAM.................................................................................................................................................21

BOARD & EXECUTIVE COMMITTEE ...........................................................................................................................21

WARID TELECOM KEY MANAGEMENT......................................................................................................................22

ORGANIZATIONAL STRUCTURE .....................................................................................24

ORGANIZATIONAL DEPARTMENTALIZATION.............................................................25

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NETWORK INFORMATION.................................................................................................26

EVENTS & ACTIVITIES......................................................................................................27

AFFINITY PARTNERS..........................................................................................................31

MAJOR SHAREHOLDERS....................................................................................................31

MARKETING STRATEGIES.................................................................................................32

MARKETING ENVIROMENT COMPETITION...............................................................................................................33

MARKETING STRATEGIES FOR WARID......................................................................................................................34

THE RESEARCH WORK FOR STRATEGY FORMULATION.......................................................................................35

ASSUMED STRATEGY......................................................................................................................................................36

RECOMMENDED STRATEGY..........................................................................................................................................36

STRATEGIES FOR ALL PREPAID PACKAGES.............................................................................................................37

STRATEGIES FOR POSTPAID PACKAGES....................................................................................................................37

ECOMMENDED STRATEGIES.........................................................................................................................................37

WARID TELECOM EXPANSION STRATEGY................................................................................................................38

WARID TELECOM OUTSOURCING STRATEGY..........................................................................................................38

WARID TELECOM NETWORK OPERATION.................................................................................................................38

SWOT ANALYSIS.............................................................................................................................39

STRENGTHS........................................................................................................................................................................41

WEAKNESS.........................................................................................................................................................................42

OPPORTUNITIES................................................................................................................................................................43

THREATS.............................................................................................................................................................................43

PEST ANALYSIS...............................................................................................................................44

POLITICAL..........................................................................................................................................................................45

SOCIAL................................................................................................................................................................................46

ECONOMIC FACTORS......................................................................................................................................................46

TECNOLOGICAL FACTORS.............................................................................................................................................46

PORTER’S FIVE FORCES MODEL......................................................................................47

MARKETING MIX.................................................................................................................49

PRODUCT:...........................................................................................................................................................................50

PRICE:..................................................................................................................................................................................56

PROMOTION:......................................................................................................................................................................62

PLACE:.................................................................................................................................................................................63

MARKET ANALYSIS............................................................................................................64

INTEGRATED MARKET COMMUNICATION.........................................................................66

CHECKING OF MODE OF COMMUNICATION.............................................................................................................68

MICRO MODEL OF RESPONSES.....................................................................................................................................68

COMMUNICATION OBJECTIVES...................................................................................................................................68

CREATIVE STRATEGY.....................................................................................................................................................68

CONCLUSION & RECOMMENDATION’S......................................................................69

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GLOSSARY.............................................................................................................................71

BIBLIOGRAPHY....................................................................................................................73

APPENDIX..............................................................................................................................74

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INTRODUCTION

With the creation of mankind, GOD Almighty blessed him with a number of senses to help him communicate with the other living creatures of his kind. As man is always considered to be a social animal supposed to interact with other human beings and not supposed to lead his life in isolation, he devised ways of exchanging his views with others in an attempt to satisfy his needs.

As it is said that, “Necessity is the mother of invention,” so the need to converse with fellow human beings urged him to invent different devices. Among the other modes of communication, he was more inclined towards speech communication. He felt fascination for such a device that could make conversation over long distance possible. Finally, after endless hours of untiring efforts, humanity saw its first success in this direction in the form of the first ever voice communicating device known as the “TELEPHONE”. This device emerged in 1876 and was brought to the front by a Scottish scientist, inventor and innovator, Alexander Graham Bell. The device could transmit voice signals at two ends located at a distance. Afterwards, some other telecommunication devices like the radio and the television also appeared on the scene but didn’t gain as much popularity as the telephone.

Model of Alexander Graham Bell's Telephone

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Time flies and history becomes the source of inspiration and motivation for the latter ones to come. With the advancement in technology and with the help of high miniaturization of thousands of electrical components onto a single board, it became possible to see the advanced and more modern face of communication in the form of devices like Wireless phones, Cell phones and Video phones.

This expansion in Telecommunication has ushered in an era that is backed by research and development in Science & Technology, thereby, making lives convenient and comfortable than ever. Now, what could only be dreamt of yesterday has now become a reality today thanks to the progress in technology. Voice transmission over long distances, which was once considered impossible, has now become a thing of the past.

WHAT IS TELECOMMUNICATION?

After providing a brief overview of the progress in the field of telecommunication, let us define the term in a number of ways:

“The process of transmitting or receiving information over a distance by any electrical or electromagnetic medium. Information may take the form of voice, video, or data.”

“The electronic process that enables communication across distances, large and small, from one sender to another.”

“Any process that enables a correspondent to pass to one or more given correspondents (telegraphy or telephony), or possible correspondents (broadcasting), information of any nature delivered in any usable form (written or printed matter, fixed or moving, pictures, words, music, visible or audible signals, signals controlling the functioning of mechanisms, etc) by means of any electromagnetic system (electrical transmission by wire, radio transmission, optical transmission).”

“Telecommunication is the transmission of signals over a distance for the purpose of communication.” In modern times, this process typically involves the sending of electromagnetic waves by electronic transmitters, but in earlier times telecommunication may have involved the use of smoke signals, drums or semaphore.

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Telecommunications is a general term for a vast array of technologies that send information over distances. Mobile phones, land lines, satellite phones and voice over Internet protocol (VoIP) are all telephony technologies -- just one field of telecommunications. Radio, television and networks are a few more examples of telecommunication.

HISTORY OF TELECOMMUNICATION

While most people associate telecommunications with modern technologies, the strict definition of the term encompasses primitive and even ancient forms of telecommunication. Given below are some of the earlier modes of telecommunication:

Smoke Signals and Drums

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Early forms of telecommunication include smoke signals and drums. Drums were used by natives in Africa, New Guinea and South America whereas smoke signals were used by natives in North America and China.

Puffs of smoke were time-released by smothering a fire with a blanket, then quickly removing and replacing the blanket. Widely used by the American Indians, smoke signals could communicate short messages over long distances providing a clear line of sight.

Relay Fires or Beacons

Other forms of early telecommunications include relay fires or beacons. Used foremostly in warfare, relay fires required a handful of men posted along a range of hilltops, with the last man closest to the area where troop movement was expected. When armies were spotted in the distance, he would light a bonfire. The fire could be seen from a good distance away by the next man in the relay, who would in turn light his own bonfire, and so the fires were lit in succession along the range, creating an effective telecommunications signal that traveled back over several miles in a relatively short period of time. Finally, the last man in the relay would light a beacon to signal his army below that the opponent was en-route.

Ships’ Flags and Semaphores

The arrangement of a ship's flags and semaphores were other forms of telecommunications. A semaphore was a mechanical device atop a tower with paddle-like blades or flags. The device would be set in a specific position to communicate information.

Telegraph and Signal Lamp

Throughout the 19th century, telecommunications devices became more sophisticated with the advent of electricity, leading to the telegraph and signal lamps.

A telegraph is a device for transmission of written messages without physical transport of letters over wire and a signal lamp, the optical version of the telegraph, is a powerful lamp with shutters that block the light in long or short durations to translate to the dots and dashes of Morse code.

Advancements During 20th Century

In the 20th century, telecommunications reached beyond our planet. In June 1969, the world watched and listened as astronauts walked on the moon. Twenty years later, in August 1989, we would see pictures of Neptune arrive back from the Voyager 2 spacecraft, riding radio waves that traveled over roughly three billion miles (4.8 billion km) to reach us in a matter of a few hours.

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Scenario in 21st Century

Strides in telecommunications have changed the world immeasurably. While pockets of humankind were once isolated from each other, people now have multiple ways to see and hear what is occurring on the other side of the world in real time. Satellite technology, television, the Internet and telephony keep the globe connected in a humming buzz of interactive voices and pictures. In short, telecommunications has come a long way from smoke signals.

HISTORY OF TELECOMMUNICATION IN PAKISTAN

British Post, Telegraph & Telephone

In 1947, Pakistan’s Telecom sector inherited the British Post, Telegraph & Telephone [PTT] Departments with a miniscule base of 7000 telephone lines. For 30 years this entity lumbered and slumbered with its old mechanical, analog ‘Strouger" switches and analog telephone lines, protected in its monopoly, both local and global.

Splitting of PTT Department

By 1962 this PTT Department was split up into the Telephone & Telegraph (T&T) Department and the Postal Departments. Since the mid-1980s, a number of countries including Pakistan overhauled telecommunications sector, to arrange / mobilize additional capital, improve performance of operating enterprises and respond to rapidly growing pressures for more varied services. The pace and scope of sector reforms has varied considerably in South, Latin America and Asia. A number of countries opted to privatize their telephone entities. In the Far East (early 1990s) there have been initiatives on partial privatization (Thailand & Malaysia etc) including liberalization of non-basic services. The results achieved were found to be beneficial.

Introduction of PTC Act, 1991

This brought the wave of change in South Asia also. To begin, Pakistan in 1990 also started taking gradual sector reform measures within the existing legal and regulatory framework. As a result, by 1991

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the Department was further re-organized thorough the PTC Act 1991 opening this public sector to the private sector companies. Licenses were granted for non-basic services where the PTT had no experience base. These were Data Network Services, Paging, and Manufacturing of Small Telephone Exchanges (“Digital Communications being the first company to do so).

Reforms through Pakistan Telecommunication Ordinance, 1994

The Government of Pakistan introduced reforms in the Telecommunication sector through the Pakistan Telecommunication Ordinance 1994, which provides a legal framework for active participation of the private sector in the development of telecommunication services. Under the act, a legal base was provided for the establishment of the following:

1. Pakistan Telecommunication Authority -- (PTA) mandate was to regulate the telecom sector.

2. The Frequency Allocation Board (FAB) was made responsible for frequency spectrum management and its monitoring.

3. National Telecomm Corporation (NTC) was set up to provide telecommunication services to public sector (Govt. & Defense) organizations.

4. Pakistan Telecommunication Employees Trust (PTET) was created as a trust to takeover statutory function to disburse pension and other benefits to the employees of the PTCL.

5. Pakistan Telecommunication Company Limited (PTCL) was incorporated as a public limited company, with the objective of providing domestic and international telecommunication and related services. About 95% of the assets and liabilities of PTC, at net book value, were transferred to PTCL whereas the remaining 5% assets were vested in PTA, FAB, NTC and PTET. The vesting of assets to new entities took place with effect from 1st January 1996.

Impact of reforms on Mobile Phone Industry in Pakistan

These reforms helped the mobile phone industry in Pakistan sped light years ahead of other industries. It all started in 1991, when INSTAPHONE became the first company to acquire a mobile phone operator license from the government. Within a few months, PAKTEL emerged as the second company to provide mobile phone services in Pakistan. Both the companies started their operations with the Advanced Mobile Phone System (AMPS) standard, which was primarily an analogue system from the first generation of cellular technology in America. At that time, the use of mobile phones was restricted to high profile professionals such as business executives and government officials.

In 1994, a company called MOBILINK introduced the Global System for Mobile Communication (GSM) to Pakistan. This was a big step forward since GSM had become a European standard for mobile technology and was being adopted the world over. This was probably the main reason for MOBILINK’s instant success in the market as GSM phones were more commonly used in most parts of the world and the basic infrastructure of the networks was the same almost everywhere.

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For seven years, MOBILINK enjoyed being the sole GSM service provider in Pakistan and saw its customer base multiply from thousands to millions by the end of 2000. It was not until the launch of UFONE in 2001, that MOBILINK had a competitor in GSM market. And since UFONE was a government-backed operator, many people decided to make the switch from MOBILINK.

In 2004, PAKTEL who had been operating on the AMPS system launched their GSM service. A more significant event was the signing of a license agreement between PTA and TELENOR in April 2004 and finally, the launch of the service in March 2005. Two months later, WARID Telecom, a subsidiary of WATEEN Telecom of Abu Dhabi, was launched after much anticipation from a huge number of mobile users holding high expectations from this company. Both these foreign operators have managed to grab hold of a good number of subscribers, especially WARID, which has reached eight million customers in less than two years, much to the chagrin of MOBILINK and UFONE.

INTRODUCTION OF CELLULAR COMPANIES

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Currently, all the six mobile phone operators which had been granted license by PTA are extending their services to cater to the needs of the citizens of Pakistan. A brief overview of each of the mobile phone operating company is provided below:

INSTAPHONE

INSTAPHONE is the small cellular company in Pakistan providing quality services to their clients. From time to time, it announces packages that are cheap; they have a lot of packages available, you can choose the one that suit your needs. Wider network coverage and cheap call rates make it a choice for the moderate users. INSTAPHONE has a good infrastructure, only one thing

which is missing is GSM network. About more than 0.3 million customers are availing the services of the company.

MOBILINK MOBILINK is the largest cellular company in Pakistan. It is a subsidiary of Orascom Telecom. MOBILINK being the pioneer of introducing cellular networks in Pakistan established themselves as the major cellular

company covering almost every nook and corner of the country. One of their well-renowned products for the Pre-paid users is “MOBILINK Jazz”.

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The company is operating on a large infrastructure and has the biggest subscriber base in Pakistan. It is present in more than 5,000 towns and cities throughout the country and its subscriber base is over 25 million customers.

UFONE UFONE, a subsidiary of PTCL, was established to provide cellular services across Pakistan. It is currently providing quality services across the country.

The company was the first one to launch GPRS and MMS services in Pakistan. Moreover, it was also the very first one to launch Internet Bill payment in the country.The company mostly targets the youth for its products. One such product for the Pre-paid segment is “UFONE Prepay”. It has a subscriber base of more than 12 million customers.

TELENORTELENOR Pakistan is wholly owned by TELENOR group, a Swedish company, operating in 13 countries and providing communication services to consumers across the globe. Their products hit the market at

rates that are lowest in the industry providing affordable ways of communication.TELENOR is the only mobile phone company in the country to offer the Value Added Service of EDGE (an enhanced form of GPRS that enables devices to browse internet at an enhanced speed). TELENOR was also the very first at providing the facility to transfer balance through its EASY LOAD facility. Its more popular products include “TELENOR Talkshawk” and “TELENOR Djuice”. It owns a customer base of more than 9.5 million users.

ZONG China Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile. The pioneering overseas set up of China Mobile came through acquisition of a license from Millicom to operate a GSM network in Pakistan.So far CMPak has invested more than US$ 700 million in the telecom sector in Pakistan and an additional US$ 800 million will be invested till the end of year 2008.

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]

Warid

Telecom

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INTRODUCTION

WARID Telecom is backed by The Abu Dhabi Group, one of the largest groups in the Middle East. The group is led by HH Shaikh Nahayan Mabarak Al Nahayan who is also the Minister of Higher Education and Scientific Research in United Arab Emirates.

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Currently, The Abu Dhabi Group is operating a number of organizations in Pakistan, some of which are:

o Bank Alfalah

o United Bank

o Wateen Telecom

o Warid Telecom

History

WARID in Pakistan

In 2004, 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 and was the first venture of WARID Telecom International LLC.

In May 2004, Mr. Hamid Farooq was hired as the Chief Executive Officer of WARID Telecom Pakistan. Prior to being hired, Mr. Farooq was working as the Executive Vice President of MOBILINK (an Orascom Telecom Company).

WARID Pakistan launched its services in May 2005. Within 80 days of launch WARID Pakistan claims to have attracted more than 1 million users.

The COMMUNIQUE Technology magazine- A Mason Publication talks about it like this:

“The GSM/GPRS network was built from scratch, starting on 23 October 2004, and at launch covered 28 cities, including Lahore, Islamabad, Faisalabad, Karachi, Peshawar and

Rawalpindi. Warid is attracting an average of over 10,000 new customers daily.”

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Moreover, at the time of launch the Chief Executive Officer (CEO) of WARID,

Mr. Hamid Farooq, had this to say:

"About 75% of our customers are new mobile users, the rest have churned from other service providers. We are appealing to so many

new customers because we came out with a very attractive price offering. We have a very good network, with wide coverage at

launch, and we are offering a Family & Friends deal whereby our customers get discounted calls to five other numbers of their choice

on our network. Our bundled package, which includes a Nokia handset, is popular because people don't have to pay for a new

phone at once."

Customer Base

According to Pakistan Telecommunication Authority, currently Warid Telecom has more than 10 million subscribers in Pakistan and is ranked as the fourth largest operator in Pakistan. Warid Pakistan claims it has the largest "post-paid" subscriber base.

Assistance to residents of Quake Stricken Areas

Warid has been one of the highest contributors in development work carried out in the quake hit areas of Pakistan after the devastating event of 8th October 2005, furthering their stance of 'We Care'.

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" To

be the leading national communication provider with a strong international presence."

BRAND VALUES:

Quality

Simplicity

Innovation

Honest

Friendliness

Quality - Warid want to make a difference to people's lives. Their optimism is contagious. They are passionate about what they do and they have confidence in themselves.

Simplicity - For them, clarity comes through simplicity. Warid recognize that they are people communicating with other people. Warid are always direct and easy to understand.

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Innovation - Warid constantly look to do things differently and in a better way. Warid give color to all that they do. Warid is ready to push the boundaries and take risks.

Honesty - Warid are always open and honest. Warid says what they do and we do what they say.

Friendliness - Warid enjoys working and succeeding together by building close relationships. While warid has a sense of purpose, warid also has a sense of humor. Warid consider the needs both of their customers and of each other.

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 residential and business customers. We strive to provide optimum level of support and care through our highly skilled and motivated team of professionals and through maximum network coverage and connectivity.

The Warid New Look

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Message from the Chairman

"We are confident that like Abu Dhabi Group's hallmark in banking industry of Pakistan, Warid & Wateen Telecom would not only reach out to every 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"

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WARID TELECOM TEAM

Board Executive Committee Warid Telecom

Mr. Bashir Ahmed Tahir

Vice Chairman and Member of Advisory Committee

Mr. Bashir Ahmad Tahir is a Pakistani national. Key positions currently held by Mr. Bashir

Tahir are CEO Abu Dhabi Group, Board Advisory Committee and Bank Alfalah Limited.

Mr. Pervaiz A. Shahid

Board Director

Mr. Parvez is a Pakistani national with a vast experience of more than 30 years in the

banking sector. Currently Mr. Pervaiz is Executive in-charge of Strategic Planning

Division, Bank Alfalah and Authorized Power of Attorney Holder of Warid Telecom.

Mr. Marwan Zawaydeh

Board Director/ CEO

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Mr. Marwan’s association with Warid Telecom started in June 2004 as Group Chief

Technical Officer and BEC Member. He currently is the CEO of Warid Telecom.

\

Mr. Lim Chuan Poh

Board Director

Mr. Lim, 52, joined Singtel in October 1998. He was appointed EVP (Strategic

investments) in February 2006. In October 2006, Mr. Lim assumed the position of CEO

(International). He is responsible for Singtel’s business groups through strategic

investments in the region.

Mr. Quah

Board Director

Mr. Quah is currently Vice President (Business Management), International Group in

Singtel, overseeing new investment opportunities as well as existing investment s in the

region.

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Warid Telecom Key Management

Warid Telecom’s main strength and focus is its employees. Warid Telecom believes this

will be its key differentiating factor and a recipe for success. The key management team

includes:

Hamid FarooqChief Executive Officer

Mr. Hamid Farooq is the Chief Executive Officer of Warid Telecom (Pvt.) Ltd. Prior to joining Warid, Mr. Farooq was working with Mobilink as Executive Vice President/CFO and Company

Secretary. He has extensive telecom experience, which spans over 10 years and also has wide-ranging local and overseas training in financial management, technical & IT, HR, knowledge

sharing and policy development. Mr. Farooq has previously held the posts of Chief Accountant & Administrator, Canadian Occidental Petroleum Ltd. (COPL), Chief Accountant,

Petro- Canada (Pakistan) Inc and Country Manager/Finance Manager, DHL Pakistan Limited/TCS.

Mr. Farooq has an MBA degree and is also an accountant by training.

Mr. Shahzad Rauf

CSO

Prior to joining Warid Telecom in 2005, Mr. Rauf was founder and CEO of WebLight

Productions Inc providing B-2-B e-commerce supply chain management solutions for the

food industry. He has over 10 years of experience in Finance and IT departments of

public sectors in USA.

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Mr. Thomas Yeo

CCO

Mr. Thomas joined Warid Telecom as CCO in October 2007. He joined from Singtel and

has been associated with singtel for more than 25 years.

Mr. Javed Mushtaq

Chief Information Officer

Mr. Javed Mushtaq is a seasoned IT professional backed up by 21 years of domestic and

global experience. He has worked both in private and public sectors.

Mr. Zafar Iqbal

GM Human Resources and Administration

Mr. Zafar Iqbal brought with him 35 years of experience with MNCs in Human Resources,

Corporate affairs, Procurement, and Administration in Pakistan and abroad.

Mr. Farrukh Hayat

GM - Sales and Distribution

Mr. Farrukh Hayat is responsible for sale/ distribution of scratch cards and other products

of Warid telecom on national basis. He has over 20 years of well rounded experience in

Marketing, Sales, Distribution and management.

Mr. Omer Haider

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GM Government and Regulatory Affairs

Mr. Omer A. Haider has 16 years of experience in telecom sector. He has worked with

insta, paktel and Alcatel at diversified portfolios involving commercial, sales, marketing

and business development.

Mr. Tariq Gulzar

GM Audit, Risk and Corporate Governance

Mr. Tariq Gulzar brings with him over 15 years of experience in assurance, internal audit,

audit, accounting, risk management, and general consulting in Telecom and Media

Industries.

Mr. Adeel Bajwa

GM Legal Affairs & Contracts Management

Mr. Adeel k. Bajwa is an experienced legal professional with corporate background in

Finance and Commercial law. In addition to managing legal affairs at Warid Telecom, his

portfolio extends internationally as well.

=

Mr. Ahmad Kamal

GM Customer Services

Mr. Ahmad Kamal has over 17 years of telecom experience in Pakistan. He has the

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exposure of working with the country’s most renowned telecom companies like Mobilink,

Ufone, Digital Communications and DVCOM Ltd.

Ms Asma Khan

GM International Business

Mr. Asma khan is responsible for International roaming and International Business (LDI

operations) at Warid Telecom.

Mr. Moin Qadri

GM Marketing

Mr. Moin Qadri has 11 years experience in the field of advertising and branding. He has

worked for various leading brands with experiences in Pakistan, Afghanistan, Indonesia,

and UAE.

Mr. Muhammad Ahmed

GM Managerial Accounting and Revenue Assurance

Mr. Muhammad Ahmed possesses 12 years of professional experience in the field of

Accounting and finance.

Mr. Muhammad Amir Shahid

GM Financial Accounting

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Page 35: Warid Telecom MBA Report

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Mr. Muhammad Amir Shahid has 13 years experience in Pakistan. In his current role, he

is responsible for financial accounting at Warid Telecom.

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ORGANIZATIONAL STRUCTURE (ORGANIZATIONAL CHART)

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ORGANIZATIONAL DEPARTMENTALIZATION

Warid Telecom (Pvt.) Ltd. Head office is in EFU House on Jail road, Lahore. Warid has the maximum number of Sales and Customer Service Centers countrywide, backed by two state-of-the-art Contact Centers of international standards that are equipped with the right facilities to ensure real-time online services. Their highly trained and wellgroomed team of Customer Service Executives provides round-the-clock-support. Warid has setup Corporate Lounges, with a customer-friendly environment to provide personalized care to our corporate clients. Furthermore, an extensive network of

franchises, kiosks and mobile units ensure easy and convenient accessibility. Different divisions, department and functionaries working in the head office are:

1. Marketing

2. Human Resources

3. Financial Accounting & Revenue Assurance

4. Sales & Customer Services

5. Administration

6. Products & Services

7. Procurement & Logistics

8. Legal Affairs

9. Engineering & Information Technology

10. Audit & Risk Services

11. Quality Assurance

12. International Business

13. Public Relations

14. Operations and Project Management

15. Govt. Relations

In the head office there are also offices of top management including CEO office.

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Network Information

Operator Name:

Warid Telecom (PVT) Ltd

Network Name:

Warid Telecom (PVT) Ltd

Technology:

GSM 900/1800

Network Status:

Live May 2005

Web Site:

www.waridtel.com

Users with Pop-up Blockers may need to use a by-pass feature (often the CTRL key for PC-based browsers) when clicking on the operator web link above.

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Events & Activities

Of

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Lahore Golf Tournament

Karachi Golf Tournament

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Warid UBL Sign Contract

Warid Telecom and Bank Alfalah sponsored eight professional international climbers of Altitude Experience team to climb K2 the most difficult and second tallest peak in the world. Seen in the picture are Mike Farris and Chris Klinke Experience team leaders with Shahzad Rauf – Chief Strategy and Operations Officer, Farah Hussain head of Public Relations and other officials of

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Page 43: Warid Telecom MBA Report

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Warid telecom with the Altitude Experience team.http://www.waridtel.com/k2/

 

May 21, 2008: Mr. Marwan Zawaydeh unveiling the new logo of the Warid telecom

Warid wins the Brand of the Year Award in 2008 for ‘The Best Cellular Company in Pakistan’

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Page 44: Warid Telecom MBA Report

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Warid Telecom has won ‘Brand of the Year Award’ again in 2008, in the category of ‘The Best Cellular Company in Pakistan’.  This is the second time in Warid’s three and half years of successful operations in Pakistan that Brand of the Year Award has been granted to the company. In 2007 Warid was the winner of ‘Brand of the Year Award’ in the category of GSM operators and service providers.

Affinity Partners

Bank Alfalah WOL Mobile Zone Chimera 4B Group VIVA ARY Faysal Bank Pak Libiya

Major Shareholders

Sheikh Nahayan Mabarak Al Nahayan

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 Highness Sheikh Nahayan Mabarak Al Nahayan is the Chairman of the Company and takes keen interest in the management of Warid Telecom.

His Highness Sheikh Nahayan is the Federal Minister for Higher Education and Scientific Research for UAE and is also Chairman of Union National Bank, Abu Dhabi, Chairman & Director United Bank Limited, Pakistan, Chancellor Al Ain University and President at the Higher Colleges of Technology, Abu Dhabi. His Highness is also the former Chairman Bank Alfalah Limited, Pakistan

Sheikh Suroor Bin Mohammed Al Nahayan

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His Excellency Sheikh Suroor Bin Mohammed Al Nahayan - Chamberlain of the Royal Amiri Courts and Member of the Royal Family of Abu Dhabi.

His Excellency Sheikh Suroor Bin Mohammed Al Nahayan was the Governor of UAE Central Bank for the last 10 years and a major shareholder of Abu Dhabi Commercial Bank. He is a member of the Royal Family and holds interest in Bank Alfalah Limited and United Bank Limited in Pakistan.

His Excellency Sheikh Suroor is the major shareholder of Abu Dhabi Commercial Bank, Abu Dhabi, UAE. Other interests include shares in joint stock companies as well as interest in commercial and real estate properties both in UAE and abroad. His Excellency Sheikh Suroor also owns the five star Hotel

Marketing Strategies

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STRATEGIES AND PRACTICES

Marketing Environment Competition

Pakistan is a highly competitive market. There are four GSM cellular companies in Pakistan right now that are Mobilink, Ufone, Telenor and Warid.

The major brand in Pakistan is Orascom’s Mobilink, which as of April 2008 had a market

share of 37 percent. Mobilink initiated operations in 1994, and for the longest time reaped the reward

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of being a first-mover in the country using GSM technology. and continues to be a pioneer in branding with its packages: the Jazz Prepaid and the Indigo Postpaid connection. The company was the first to experiment with a female model as a brand ambassador on its ATL campaign. Pakistan Leading super Models such as ZQ, Sunita Marshal, and Iman Ali all remained part of their campaigns.

Mobilink’s greatest competition came in the form of Ufone, a cellular service brand

introduced by the then state owned PTCL in 2001. The brand immediately began by focusing on the customers, launching a campaign that culminated in consumers designing the brand’s initial logo. Ufone further refined its strategy by 2005 when, under the new ownership of Etisalat, it was re-launched with a new logo, which was a reflection of the increasing competition from the likes of the Norwegian-based Telenor, and the UAE-based Warid Telecom. Ufone has market share of 21% according to April 2008 statistics.

Telenor began operations in Pakistan in 2005, and started with a pre-launch

nationwide teaser campaign that revolved around "something exciting" making its

way to Pakistan. In only three years, Telenor had claimed 20 percent of the market

share, almost on par with Ufone’s 21 percent.

Warid Telecom, with a current market share of 17 percent, also got launched in the

same year with a beautifully shot "slice-of-life" TV ad. Unfortunately, Warid wasn’t able to capitalize on its great start, and hasn’t 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.

Zong, formerly known as Paktel but re-launched this year under China Mobile, took

a different approach. Zong stepped into the fray with an expansive launch TV ad and

followed it up with a campaign that took on the other telecom brands' marketing

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strategies.

`

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A marketing strategy helps you to define business goals and objectives and also give a frame work and plan to achieve those goals.

It also represents the company’s main motive the vision or motto while producing value for customers.

There are certain things which should be kept in mind while devising a marketing strategy. Which are:

Selling proposition Target market Benefits/Features of your products & services Positioning Method of marketing

MARKETING STRATEGIES FOR WARID

Warid’s motto WE CARE tells everything about its past, present and future strategies. We care symbolizes care for everyone whether it’s a child, a teenager, an adult, an old man, a female or male, warid is for everyone. Warid cares for everyone as it has provided packages for every age group and for every status and designation conscious man.

EVALUATION

Selling proposition------------------------------------Different packages (zahi & Zem)

Target market------------------------------------------Every age group

Benefits/Features--------------------------------------Different services+VAS+Low cost

Positioning----------------------------------------------Satisfied customers (10 million)

Method of marketing----------------------------------Every possible channel of

Communication (mostly billboards

Are used)

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WARID PACKAGES

Main Packages:

Warid is offering two main packages, one is prepaid (ZEM) and the other is postpaid (ZAHI). Prepaid is mostly for individual groups and Postpaid is for corporate.

In ZEM prepaid there are five different packages in respect of its billing such as 1 second, 30 seconds, 60 seconds and etc.

Let’s have a look on zem’s 12 to 9 package. This package is for midnight users or you can say the committed people. People who are engaged, going to be engaged or just committed ones. Different call rates for this package are given in the 4Ps section. The call rates table shows that the rates for midnight users were kept very low just to facilitate those users who want to talk the whole night.

The research work for Strategy formulation

Here the marketer has first segmented the whole population into different segments like students, professionals, executives, retired people, housewives etc. Now the people for whom this package is offered are mostly from students segment. Now the marketer further divides this segment into school going, college going and university going. From here most of the part is selected from college going and university going and some from school going as they are not that much mature. The marketer then selects some students from each segment on sample basis and collects the relevant data. Then he applies certain averages on the data and presents the findings to the decision makers.

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Segmentation

Different groups (Students, professionals, executives, retired people)

Further segmentation (students)

College, University & schools

40% 40% 20% (Sampling)

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Assumed Strategy

The marketing strategy here was to target the people mentioned above, offering a specialized package for them at lower rates so they can talk to their loved ones for a long time without thinking much of balance.

Recommended Strategy

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Segmentation

Different groups (Students, professionals, executives, retired people)

Further segmentation (students) ________ (Target market)

College, University & schools

Package 9 to 12_________________ (Proposition)

Low cost __________ (Benefits/Features)

60 seconds billing

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A research survey showed us that in prepaid packages 60 seconds billing package is the most popular one specially the above mentioned package. The real problem in this package was that after talking for whole night you came to know in the morning when you have to contact someone urgently that there is no balance in your mobile. What to do now?

Here I recommend that an additional offering must be attached in this package like that if you talk at night for whole three hours your mobile should be recharged for a minimum balance of rupees 30 after you disconnect your call. This will increase customer convenience and customer satisfaction.

Strategies for all prepaid packages

Warid ZEM offers five packages in respect of billing criteria’s. Each package represents a different segmented group. Some people just give missed calls for them there is one second billing package. Some people talk for just half a minute or a minute such as friends in a school or college who often call each other to know where the other friend is. For such people there is 30 second billing package and so on.

After reviewing all these packages, we recommend that first of all it’s billing criteria should be made easy for people to understand as majority of the people told us that it is a little bit difficult to understand its billing criteria.

Then it is portrayed as cheapest but when you review all its tariffs you will find that it is not that much economical. So it should be made really economical.

Then new different kind of additional offerings must be attached to its prepaid packages just as I recommended above for its 9 to 12 package, as ZEM is famous for more and more services.

ZAHI Postpaid:

It is clear from its name that this package is for rich and sophisticated class, for people who are class conscious.

This package is also divided into sub packages as six denominations or variations. Zahi 150, zahi 500 and so on up to zahi unlimited.

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Page 54: Warid Telecom MBA Report

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The basic features of zahi postpaid are almost same as of Zem. The main difference is in its billing criteria. It is expensive then zem as it represents a sophisticated class.

Strategies for zahi postpaid

Marketers here have not influenced much on prices as it is for rich class. They have stressed upon how to sell this offer. They also have added a feature of free minutes on different packages equal to its line rent. By doing so they have tried to balance the rate of line rent by giving equal free minutes but the thing is that the call rates are much higher. As the customers are mostly businessmen, executive and other rich or landlord class, the first two have not that much time to check its billing and the other two are mostly illiterate or don’t think that it is suitable for us to check or be conscious about the bills.

So it was easy for marketers to target such people and make them their permanent customers, as Warid’s zahi postpaid is the main revenue generator package.

Recommended strategies

Our researches showed us that really people are not that much concerned about bills, what they think difficult is the process of payment. What should be done is giving your account numbers to the warid telecom office through sms or by receiving payment at door step.

One additional thing which can be done is paying on line by giving your credit card or debit card number. This will increase customer convenience.

One more facility is providing a short over draft facility to the customers of Warid postpaid who are also the customers of bank alfalah.

WARID TELECOM EXPANSION STRATEGY

Targeting telecom’s operation in new, emerging and growing markets. Focus regions: South East Asia, Middle East and Africa. Full long term commitment to provide best quality service using latest technology in all markets

that Warid enters.

Warid telecom international will serve 50 million customers by 2010.

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WARID TELECOM OUTSOURCING STRATEGY

To achieve optimal cost structure and focus on Core business Warid’s strategy is to outsource typical network activities like:

Network Design, Site Acquisition, Civil Work, Installation, Integration, Commissioning, Operation Optimization of the Network

Key Success Factors for Warid is:

Build the brand and grow the subscriber base speed to market to gain competitive edge Ensure quality of the network performance and operations Operate in most cost effective and efficient manner.

To achieve this Warid relies on long-term partnership and trust with its vendor –Ericsson to provide these services.

WARID TELECOM NETWORK OPERATION

Warid has given Ericsson the task to operate and manage Warid’s overall network in Pakistan covering the following scope:

NOC Operations Alarm Surveillance & Fault Rectification. Field Operations Site Maintenance Network optimization & Tuning

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Swot Analysis

Of

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SWOT ANALYSIS

STRENGTHS WEAKNESS OPPORTUNITIES THREATS

What is it?

A SWOT analysis is to identify and analyze the Strengths and Weaknesses of your organization, as well as the Opportunities and Threats revealed by the information you have gathered on the external environment.

Who uses it?

The team members and the managers.

Why use it?

To develop a plan that takes into consideration many different internal and external factors, and maximizes the potential of the strengths and opportunities while minimizing the impact of the weaknesses and threats.

When to use it?

While developing a strategic plan or planning a solution to a problem, after you have analyzed the external environment (for example, the culture, economy, health, sources of funding, demographics, etc.).

How to use it:

1. Internal Analysis: Examine the capabilities of your organization. This can be done by analyzing your organization's strengths and weaknesses.

2. External Analysis: Look at the main points in the environmental analysis, and identify those points that pose opportunities for your organization, and those that pose threats or obstacles to performance.

3. Enter the information you have collected in steps one and two into a table as illustrated below:

POSITIVE NEGATIVE

INTERNAL Strengths Weaknesses

EXTERNAL Opportunities Threats

4. You can use this information to help you develop a strategy that uses the strengths and opportunities to reduce the weaknesses and threats, and to achieve the objectives of your organization.

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STRENGTHS

Abu Dhabi Group

Warid telecom is headed by Abu Dhabi Group that is known to be very renowned Group of UAE. This group is backed up a strong financial setup. The Abu Dhabi Consortium led by His Highness Sheikh Nahayan Mabarak Al Nahayan owns Warid Telecom. The group is one of the largest in the Middle East and has diversified business interests ranging from oil and gas exploration, hospitality services, telecommunications, banking and financial services, automobile industries and property development. The group has a large presence in the Pakistani market and owns Bank Alfalah, one of the country's premier consumer banks, as well as a substantial stake in United Bank Limited, one of the largest banking institutions of Pakistan.

The Network

Warid made partnerships with some of the leading vendors in the telecom industry who help in providing the best and the latest network solutions for their businesses. These vendors include cellular giants Ericsson, Nortel, Siemens, Cisco and Huawei.

Service beyond Comparison

Customers are the most important element in any organization. Warid distinguish them as their biggest assets, and they strive for excellence by listening to their needs. Warid works with our customers to gain

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an understanding of their business, their goals and their objectives to ensure that they receive the best possible service and the right solutions to meet their needs.

Warid have the maximum number of Sales and Customer Service Centers countrywide, backed by two state-of-the-art Contact Centers of international standards that are

equipped with the right facilities to ensure real-time online services. Their highly trained and well-groomed team of Customer Service Executives provides round-the-clock-support. Warid have setup Corporate Lounges, with a customer-friendly environment to provide personalized care to their corporate clients. Furthermore, an extensive network of franchises, kiosks and mobile units ensure easy and convenient accessibility.

Innovation

Warid is committed to providing superior level of professional services to all its customers - before, during and after the deployment of our leading solutions. To accommodate our customer's demands, we have deployed a state-of-the-art 2.5G EDGE compliant network. There are also innovative services of various standards that cater to a wide spectrum of users.

Best Practices

Warid believe in a process-driven setup with comprehensive business processes covering all our activities. All business processes are ETOM compliant as per accredited international standards.

Portrayed As Cheapest

Warid telecom has been portrayed as cheapest cellular service provider. Both is packages ZAHI and ZEM are consider as the most economical packages.

STRATEGIC PARTNERSHIPS

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Warid is making strategic partnerships and alliances with globally known companies. Recently on 28th of June 2007 Warid has announces SINGTEL as its strategic partner and shares 30% of its stake with SINGTEL worth $758 million This helps warid keeping robust growth in telecom sector.

Warid had also done a strategic partnership with NOKIA and MOTORALA helping warid to improve its outbound logistics.

NO TAX CHARGES

Warid is the only mobile operator in Pakistan that is not deducting taxation charges on recharging of prepaid account.

BEST FEATURES

Warid has been offering best packages since its inauguration in Pakistan.

Warid has offered these features first in Pakistan.

Friend and family 30 second billing Zoom unlimited

Warid is offering to its business customers a very important facility on WME to save office documents of different format from internet into mobile set. This feature is only offered by warid telecom.

VOICE QUALITY

Warid is offering best voice quality services that are the result of their own optical fiber network. This optical fiber network is offered to warid by its sister concern WATEEN TELECOM.

WEAKNESS

Low Coverage

There are number of competitors in the market and Mobilink is the largest competitor spread across the country. It is a weakness of Warid that its coverage area is low as compared to its competitor.

Advertisement

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Advertisements play a vital role in promotions of new products and companies. It’s a weakness of Warid that its advertisements are not aggressive as compared to its competitor Mobilink and Telenor.

Complex Billing

Most people argue that Warid’s billing criteria is very complex to understand for a common man and it is too confusing.

Spreading too many Slogans

Warid is spreading too many slogans at a time such as “be heard”, “be young”, “we care” etc.

If a brand is positioned with multiple slogans within same segment with same products.

OPPORTUNITIES

COVERAGE EXPANSION

Warid has covered almost the big and major cities and areas of Pakistan and all the major road and motorways but still there is opportunity for warid to go into rural areas of Pakistan.

WATEEN TELECOM

Wateen telecom-sister concern of warid telecom is a big opportunity for warid as their services are interlinked and the bands and optical fiber network of Wateen has been using by warid and in next phase WIMAX-wireless services of Wateen will being used by warid telecom.

MARKET CAPTURE PLAN

There is opportunity for warid telecom to capture new marketing plans to get more market share. Currently warid market share is 16.6% and there is still a large room for capturing more market shares as telecom sectors still expanding at robust growth and currently the share of telecom sector in GDP is

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2.00% and government is planning to increase this share. Its importance can be seen that 44% of FDI is in telecom sector.

THREATS

STIFF COMPITITION

When warid has launched in Pakistan on 23rd march, 2005, there were already major competitors in Pakistan including MOBILINK, UFONE, TELENOR, PAKTEL and INSTAONE. However warid has got a significant market share but there is still stiff competition in the telecom market and warid has to consider this competition as a threat.

NO TELECOM BACKGROUD

Warid is a part of ABU DHABI GROUP that is a renowned group in the world working in major sectors like oil and gas, hospitals, universities etc. There is no telecom background of this group so warid has to be innovative as it is to cope up against this threat.

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Pest Analysis

Of

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PEST ANALYSIS

Political

Pakistan Telecommunication Authority has been striving hard and trying its level

best to create level playing field in the Cellular Mobile industry. Politically,

Pakistan is an unstable country where Government decisions and regulatory

initiatives matter a lot

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Social

During the formation of marketing strategies, Warid looks after a lot of factors.

Deep study of local culture and social setups is also one of the major factors

which account much in successful strategy formation of Warid. Varying types of

consumer behaviors are found in different societies. The study of society helps to

understand the consumer behavior and in turn assists Warid to improve their

marketing strategies by understanding issues like:

The way how consumers think, feel and select a cellular connection

The psychology of how consumer is influenced by culture, family and socialsetups.

As Pakistan is an Islamic country and people are very strict in case of Islamany thing against the philosophy of Islam on either print or electronic media

are treated as against Pakistan.

Most of the people dislike anything extra-ordinary or something whichsabotage their culture or subculture.

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Companies who are targeting upper-end of market mostly published andaired their advertisement in English language. In metropolitan cities women are doing work along with their other responsibilities but other than metropolitan cities it is difficult for women to convince their parents and spouses for work. Under standing of these issues helps to adopt better strategies by taking the consumer into consideration. By understanding the consumer, Warid makes amore Informed decision as to which strategy to employ.

Economic Factors

In Pakistan, Marketers should consider long term and short term state of atrading market.

Inflation is controlling by state bank and under strict eyes but unemploymentrate is going up and up with the increase of level of poverty

Technological Factors

Companies have technology with which they can compete in the Pakistan andnow companies are investing in their infrastructure to not only expand but

also to upgrade their existing structure.

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Porter’s Five Forces Model

Of

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Rivalry among existing businesses of telecom companies competing to supply the same product or service in the telecom market of Pakistan.

The threat of new entrants in the marketplace and the impact they may have: the barriers to entry are high there is much less of a threat to existing players than if it is fairly easy for a new firm to join in the fun. Conversely, as a new entrant warid will be happier if there are few factors that pose a major block to entering in a chosen market.

The threat of substitute products or services, including those which, though different to warid, might provide similar benefits: Customers may have the choice not only of buying warid particular type of products or services - from warid direct competitors - but also of choosing a substitute method of solving the problem. For example, same rates packages are not only competing against each other, they also face the possibility of customers deciding to use which one’s network.

The bargaining power of warid for post paid and prepaid packages is low because if the customer does not purchase its package then customer has the option to purchase different company’s offer and its effect on their costs: warid products and services has so much competition and not serving in a monopoly situation because there are so many companies are in working. Then warid need to negotiate with the other telecom companies at rates.

The bargaining power of customers, and in particular, their effect on prices: Without customers there is no market. They usually have notable buying power simply because they are in a position to choose from whom they buy although this is not necessarily always the case. Warid may not be a fortunate in being the sole supplier of a particular type of product or service aimed at a particular target group - often called niche marketing .

These factors, summarized in the middle of the figure below, will effectively determine the likely profitability of warid business because they affect costs, prices and investment requirements. Part of the role of market research, then, is to examine these forces and to be able to make informed decisions taking this information into consideration.

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Marketing Mix

Of

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PRODUCT :

Warid seeks to be the new comprehensive provider of advanced telecommunications solutions in Pakistan. At Warid, it is ensured that the customers get nothing but the very best of Value, Honesty, Help and Fun.

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

Factors Affecting Product Line Decisions

There are lots of factors, which are considered by Warid while making their product line decisions. Customer needs is the most important factor, which is identified through the feedbacks of customers by consumer survey forms and through conducting Telemarketing activities. Then the availability of resources, the organizational objectives, and their areas of different segments they are going to focus etc. are considered.

At present Warid’s Product Line includes two packages:-

Zem PrePaid Zahi PostPaid

Zem prepaid:

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Warid Telecom’s latest in prepaid convenience that is backed up by the promise of service, service and more services. Not only is it simple to use but also offers a host of revolutionary products and features that will forever change the way you communicate. So start Zemming today, and get ready to experience a world of connectivity like you never experienced before!

Zem prepaid offer five billing options which are given below:

Zem 1 second Zem 30 second Zem 60 second Zem 321 countdown Zem 12 to 9

Basic Features:

Caller Line Identification (CLI)This service enables you to identify callers at your discretionConference Callwww.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/

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With Conference Call, you can teleconference with 6 people simultaneously. You can create conference calls with on-net (Warid to Warid) and off-net (national) numbersCall Waiting & Call Hold Handle two calls at a time with your Warid phone. You can be on one call while the network will alert you about another incoming call. You can put the first call on hold while you answer the second call

Call DivertWhether you're unable to take a call, driving outside the national coverage area, traveling abroad or are busy, you can divert your calls to any other Warid number.

Short Messaging Service (SMS)With SMS you can be as discreet or as creative as you like. Either way, sending a message is quick, reliable, and confidential and if you want it to be...great fun!

Value Added Services:

Voice MailVoice Mail allows you to receive your voice messages even when your mobile is switched off, you are outside the coverage are or are busy. You can retrieve these messages for free from your Warid phone at your own convenience. Picture Messaging & Multi-media Messaging Service (MMS) With MMS messaging is fun, colorful and musical. Add pictures, animations, polyphonic & MIDI sounds, even video clips to messages and show the world how amazing communications can be.

Surf Now (Mobile Internet)Surf Now gives you the flexibility to browse the internet on your mobile phone or laptop anywhere you are. So, whenever you are on the internet, simply setup the internet connection from your GPRS/WAP enabled handset. 64K SIMWarid presents the most powerful 64K SIM. Apart from the special WARID menu, the 64K SIM gives its users added flexibility to store up to 500 numbers and 50 text messages. No other SIM in the market offers this amount of storage space. Prepaid customers can replace their standard 32K SIM with the 64K SIM by paying a replacement fee.

Friends & Family (FAF)

There will be up to 33% discount on billable rates for calls to up to 5 pre-designated Friends and Family (on-net) accounts.

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Warid ZoneThe state-of-the-art SIM technology, your Warid SIM comes with a special WARID menu. This menu offers a bundle of services.

50 Free Minutes

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

Balance Share

Balance Shares is a new convenient hassle free service that allows Warid ZEM Prepaid subscribers to transfer balance from their account to any other Warid Prepaid account. Subscribers can transfer balance from one account to another at any time and anywhere.

Caller Tunes

Warid Caller Tune is a service offered by Warid for recipient friends and family to enjoy. It allows to choose a song for callers to hear, instead of the traditional tone before you answer a call.

Friends and Family

This is the service which is offered by Warid to all Zem customers can now avail LOWEST EVER CALL RATES on Warid as well as on All OTHER NETWORKS by subscribing to ZEM FRIENDS & FAMILY package.

Infotainment Services

Warid provides infotainment service to access important information on the handsets. Listen to latest news‚ Daily Horoscopes‚ exciting recipes‚ hilarious jokes & fun filled short stories anytime‚ anywhere simply by dialing 1500 from the mobile phones.

Text related Zem Services

Warid at the time of its launch provided text related services but these services

were very much same in rates and quality as that of its competitors. e.g. in order

to activate GPRS and MMS you have to get it activated at high rates, SMS rates

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were also higher at that time. Bust as the time passed they have lowered their

SMS, MMS and GPRS rates to extremely cheap rates. Warid has introduced

following SMS, GPRS and MMS related packages for those who love to text and

use web.

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Text Related Zem Packages

ZOOM“Zoom” is one of the product offered by WARID with which you can send 25 sms/

mms per day with subscription fee of Rs 3/day. Zoom focuses on the sms lovers

with low income such as students and general public in Pakistan.

ZOOMU“ZOOMU” offers services with which you can send unlimited short SMS/MMS at

deduction of Rs. 7 /day from your balance. Zoomu targets the customers with

large social circle who want to be connected with their friends and relatives.

Internship Report: Warid Telecom 46

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SMS CRAZEWhether texting, sharing pictures or browsing the internet, you simply can’t get a

better deal. 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. Warid zoom is a service by which the subscriber can send SMS for only 3 paisa which the cheapest SMS rate in Pakistan.

Warid Zoom is available in two variations:

Zoom Limited (25 SMS for Rs. 3.81/day) Zoom Unlimited (unlimited SMS for 8.89/day)

INFINITE CRAZEIf you have the craze to talk long hours at night, Zem brings you INFINITE

CRAZE, the best night-time package in Pakistan. By subscribing to Infinite Craze

you can now make unlimited free calls, from 12:00 a.m. to 7:00 a.m., to any one

Warid number and you can also send unlimited free SMS & MMS to any number

across Pakistan. There is no monthly restriction of selecting your special

unlimited “infinite” number. You can change your number daily or hourly and talk

to a different friend for hours every night.

SUNDAY CRAZEIf you are busy all week and want to catch up with friends & family on Sundays,

Zem brings you Sunday Craze, the best friends & family offer. By subscribing to

this offer you can now make unlimited FREE on-net calls on Sundays, from 8:00

a.m. to 12:00 p.m.

ZEM NITESZem Nites is a package tailored for late night callers. Under this package the

subscribers get unlimited calls to any on-net number from 11pm to 7am for a

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daily charge of Rs. 24+tax

Text Related Zem features

SMS MMS GPRS Instant messaging

Latest Marketing Campaigns of Zem Prepaid

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Zahi postpaid:

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Warid’s Post Paid connection is called Zahi. (Zaa-hee): Leader, Royalty. Keeping in mind Warid’s brand philosophy, Zahi is a name that represents their post-paid services aptly. Zahi depicts class and sophistication and highlights its role in Pakistan as a post-paid package. All in all one word aptly defines Zahi; suave.

Zahi postpaid has six variations which are following:

Zahi 150 Zahi 500 Zahi 1000 Zahi 1500 Zahi 2500 Zahi unlimited

Basic Features:

1. Conference Call2. Call Hold/ Call Waiting3. Call Divert4. Voice mail5. SMS6. MMS7. FAF8. Surf Now (GPRS)9. Warid Zone (Warid SIM Toolkit Applications)10. International roaming

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PRICE:

Different packages of warid both prepaid and postpaid are available at affordable prices.

Pricing Strategy

Pricing Strategy for Warid Telecom has been developed keeping in mind that Pakistan is an affordability driven market. All cellular service providers are shedding down their prices due to the entry of newcomers and

the intensive competitive environment. The key to success in such a

Factors Constituting Pricing Decisions

In Warid Telecom, the most important factor, which constitutes the pricing decision is the strengthening of their brand image, which can be achieved by providing quality services and value against the price paid by the customers. Then they consider the market segments, which they

1. Zem prepaid:

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Charges (Paisas)

Friends & Family

2

On-Net (Warid to Warid)

3

Off-Net (Landline)

4

Off-Net (Other mobile)

5

Zem 111 International

Zone 1 2.25

Zone 2 12

Zone 3 18

Zone 4 33

International Regular Rates

Zone 1 18

Zone 2 36

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Zem 30 second:

Charges (Rs.)

Friends & Family 0.50

On-Net (Warid to Warid) 0.75

Off-Net (Landline) 1.00

Off-Net (Other mobile) 1.25

Zem 111 International

Zone 1 0.55

Zone 2 3.49

Zone 3 4.99

Zone 4 8.99

International Regular Rates

Zone 1 4.50

Zone 2 9.00

*Per 30 second rates (exclusive of all taxes)

Zem 60 second:

Charges (Rs.)

Friends & Family 0.75

On-Net (Warid to Warid) 1.25

Off-Net (Landline) 1.75

Off-Net (Other mobile) 2.25

Zem 111 International

Zone 1 0.99

Zone 2 5.99

Zone 3 8.99

Zone 4 15.99

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International Regular Rates

Zone 1 7.00

Zone 2 14.00

* Per 60 second rate (exclusive of all taxes) + air time

Warid Zone Content

Download SMS based content for Rs. 2.00/ transaction

Download MMS based content for Rs. 3.00/ transaction

Friends & Family

Upto 5 Friend & Family numbers can be

nominated for On-Net ( Warid to Warid)

Zem 321 countdown:

Charges (Rs.)

1st 3mins

Next 2mins

Thereafter

Friends & Family 1.00 1.00 1.00

On-Net (Warid to Warid)

3.00 2.00 1.00

Off-Net (Landline) 3.00 2.00 1.00

Off-Net (Other mobile) 3.00 2.00 1.00

Zem 111 International

Zone 1 1.99 0.99 0.79

Zone 2 9.99 7.99 4.99

Zone 3 11.99 9.99 7.99

Zone 4 21.99 15.99 13.99

International Regular Rates

Zone 1 7.00 7.00 7.00

Zone 2 14.00 14.00 14.00

*Per 60 second rates (exclusive of all taxes) billing loop restarts after 20 minutes

Scratch Cards

Scratch Cards are available in denominations

Rs. 100‚ Rs. 250‚ Rs. 500 and Rs. 1000

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Zem 12 to 9:

Charges (Rs.)

*Per 60 second rates (exclusive of all taxes)

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12 to 9 Daytime

Friends & Family (Warid to Warid) 0.65 1.00

On-Net (Warid to Warid) 0.65 1.50

Off-Net (Landline) 1.00 2.00

Off-Net (Other mobile) 1.75 2.50

Zem 111 International

Zone 1 1.99 1.99

Zone 2 6.99 6.99

Zone 3 9.99 9.99

Zone 4 16.99 16.99

International Regular Rates

Zone 1 7.00 7.00

Zone 2 14.00 14.00

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Zahi Postpaid :

Warid postpaid

Warid post paid connection is associated with Royalty. Post paid subscription is

also called a billing connection. In this type of a connection, you can avail the

services of a cellular connection first and pay for the usage at the end of the

month. On consistent and regular payment and high usage pattern you could win

yourself the opportunity to enjoy exclusive loyalty and frequent user facility

provided by Warid Telecom. Keeping in mind our brand philosophy, Warid

Postpaid is a name that depicts class and sophistication. Warid Postpaid that

defines commitment and satisfaction to the customers. Warid Postpaid is offering

two kinds of services.

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A. Voice related services

B. Text related services

A- Voice related Warid Postpaid Services

Warid postpaid when started at launch was called “Zahi postpaid”. Zahi means

“royalty”. Before relaunch as “Warid Postpaid”, Zahi was the warid postpaid and it

offered five calling plans to the mobile users. These plans were

After Relaunch, Zahi Postpaid was replaced by its generic name that was Warid

Postpaid. After relaunch as generic name Warid postpaid, Warid also revised

tariffs for the postpaid calling plans. Now the Warid Postpaid calling plans are

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Warid postpaid 150 calling plan is postpaid package with monthly line rent of

150. It is targeting the relatively low income customers.

Warid postpaid 500 calling plan is postpaid package with monthly line rent of

500. It is targeting the middle class income and family customers.

Warid postpaid 1500 calling plan is postpaid package with monthly line rent of

1500. It is targeting the professional businessmen.

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Warid postpaid 2500 calling plan is postpaid package with monthly line rent of

2500. It is targeting the rich class and businessmen doing business at relatively

large scale.

Warid postpaid 4000 calling plan is postpaid package with monthly line rent of

4000. It is targeting the high class business executives and rich families.

Voice related Warid Postpaid Features Conference Call Call Waiting & Call Hold Call Divert Voice Mail

B- Text related Services

Warid Postpaid offer text related services which are less modified over time and

mostly standard text service charges are applicable on warid postpaid text

services.

Text related package ZOOMU SMS for a subscription of Rs.210 + tax for 7500 SMS/MMS

Text Related Warid Postpaid Features

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Short Messaging Service (SMS) Missed Call Alerts Picture Messaging & Multi-media Messaging Service Mobile Internet

Latest Marketing Campaigns of Warid Postpaid

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PROMOTION:

The promotion 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 mediums used for the promotional purposes include:

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

For promotional purposes, those TV 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. are given frequently, 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 the purpose of selling 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, Warid is sponsoring musical events e.g. ‘A Night to Remember’ and will be sponsoring event management at all scales. This

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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. .

Promotion Budget

Speaking of Warid’s promotional budget, it’s highly confidential so it was not told to us, but its in hundreds of millions. In Warid, Internal and external factors all come into consideration while deciding promotion budget. External include competition, political, social conditions, market share and general trends going on etc. Internal include Financial Planning, forecasted sales, goals to be achieved.

PLACE:

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 Warid is now working in around 150 cities in Pakistan.

They are working upon rapid expansion of their franchises all over the country. However, they should also be focusing more and more on the availability of both the connection itself and the recharge options for the customers. In Lahore there are 40 franchises and a business centre situated in Gulberg. The head office is situated at EFU building Lahore.

Customers come first is the strategy that they are using, which means that the customers should be at the ease of recharge whenever, wherever. In this regard, their first aim is to target and provide all those retailers, distributors and retail outlets, which currently carry the facilities like connections and scratch cards of other mobile companies, with valuable incentives and promotional allowances, 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 well informed 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.

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Market Analysis

Of

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Integrated

Market Communication

Of

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Integrated Market Communication

Success of an organization is supported by few pillars out of which IMC is the strongest pillar of some marketers. In IMC there is a combination of different promotional tools that will create a synergy effect as compared to the usage of these tools individually. that is what Integrated stands for. In IMC the marketer has to observe keenly, the market trends and needs and wants of the consumers.

Checking of mode of communication:

They have selected more print media to target their market than electronic media. The basic reason behind using only the print media might be that Warid telecom is basically targeted at middle and lower middle class who are more attracted with colorful print ads than.

Micro Model of Responses:

This add is following the AIDA model. They are trying to focusing on the following functions;

Attention:

They are using a humorous and affection image through which they can get the more attention of the people especially the youth of Pakistan which are using Warid packages in a huge number.

Interest:

“Free Sunday Mornings”

“SUNDAY CRAZE” is the attractive phrase for the people, those who are interested to call in Sunday morning timings. Every Sunday (Warid to Warid ) enjoy free calls, from

Morning 8:00am to Afternoon12:00 am.

Action:

“Dial 100”

If you want to activate the package then dial 100.

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Communication Objective:

In this add company is trying to make mind towards the people who are already using warid package. Warid is trying to inform their customer that they are introducing new brand in the market which is also user friendly as their other products.

Creative Strategy:

Informational:

It is one sided appeal.

Transformational:

They are using a female model in this add. This add is showing humor and affection aspect

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Conclusion &

Recommendations

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CONCLUSION AND RECOMMENDATIONS

With some changes at higher level including advisor to CEO, G.M Marketing much has

Improved this year in Warid Telecom market rating. Warid Telecom certainly has

Potential to capture good market and to give tough time to the competitors, but for this

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at least following steps should be taken

Warid telecom is offering cheap rates for its prepaid and postpaid customers ascompared to its competitors but the main area they are lacking is the way to

Communicate it to customers.

Seth Culture should be avoided.

Network should be enhanced to much more cities.

There should be consistency of brand ambassadors, jingles, colors and graphics intheir print and electronic media ads to create strong brand recognition.

More regional departmentalization should be there, so as to create strong presenceand market analysis at regional levels.

More staff to should be hired in some departments to meet the requirements.

There should be more decentralization and employees should be encouraged fortheir ideas.

Compensation and benefits plans should be revised, as it can be used as a veryimportant tool to create motivation in employees.

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GLOSSARY

ATL (Above-the-line advertising)

Term refers to main media expenditure, TV,

print, radio, outdoor, cinema and its

traditional accounting treatment. Now used

for all traditional media expenses incurred

through an agency; mainly used to create,

maintain brand awareness/interest.

BTL (Below-the-line advertising)

Expenditure on promotional activities which

are used to be managed within the company

(now many specialized agencies take on

these task); promotional activities other

than 'above the line' e.g. sales promotion,

POP, direct response are examples of BTL.

Marketing Communications

The formal and informal messages that

sellers transmit to buyers; that can be

systematic (planned) as well as the

unsystematic (unplanned) promotion by a

firm of its products to its markets.

Procurement

Noun. Purchase, sale, acquisition

Logistics

Activities involved with the orderly and

timely acquisition and transportation of

materials required for production, and

with the storage, handling and dispatch of

finished goods to customers.

Tariff

Noun. Price, rate; protective tax

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Flyers

A mass circulation advertising leaflet or

pamphlet dropped through the letter box or

put loosely inside magazines or newspapers.

Operations

Noun. Act of operating; working,

performance, handling; venture,

undertaking;

Marketing

Act or process of buying or selling at a

market; development of a strategy for the

sales of a certain product; promotion and

selling services; distribution of goods

Human resources

Noun. Manpower, human work force, human

labor; field of business that deals and

handles personnel matters (such as hiring,

training, firing, etc.)

Financial Accounting

Collection of basic (raw) data, as in

management accounting, but treated in a

prescribed and statute enforced format

which emphasizes the historic, custodial and

stewardship aspects of the business

Sales

Total revenue amount collected for goods

and services provided; see also gross sales,

net sales, return on sales. Sales charge -

same as commission

Customer Service

The process of meeting every customer need,

before, during and after the sale; the dept.

responsible for looking after the customer.

Administration

Noun. Management (of an office, project,

etc.); execution of managerial duties; people

in charge of directing or managing,

supervisors, leadership

Audit

An examination into the current business

situation; it can be both internal and

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internal.

Risk Services

Providing services of analyzing exposure to

risk and determining how to best handle

such exposure.

Quality Assurance

The name given to the procedures used to

ascertain that measurement data are good

enough for their intended purpose. It

involves

1. Quality control: those procedures and

activities utilized to verify that the quality

control system is operating within

acceptable limits and to evaluate the quality

of the data; and

2. Quality assessment: those procedures and

activities utilized to verify that the quality

control system is operating within

acceptable limits and to evaluate the quality

of the data.

Public Relations

A deliberate, planned and sustained effort to

establish and maintain positive

understanding, good image, between a

company and its publics. Such publics

include customers, shareholders, employees

etc.

Project Management

Tracking and supervision of the tasks which

must be done in order to complete a project

(especially the production of a system)

Artwork

Noun. Work intended to have artistic value

Facia

Noun. Sign board (of a shop); dashboard,

instrument panel of a car (British)

Streamer

A long, narrow sign with a message in bold

type hung across open area, window, or

doorway.

Vendor

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Noun. Salesman; supplier, equipment

salesman (for example in the field of

computers, etc.); automatic machine for selling goods

Loyalty

The extent to which customers repurchase a

particular product or brand.

Leasing

Noun. Act of renting out property for a

specified period of time; possessing or

occupying under the terms of a lease.

General Ledger

The master file in which a record is

maintained for each and every account in

the organization’s accounting system.

Treasury control

Control of finances, dealing with money,

work of a treasurer

Franchise Verb. Grant a franchise to an

individual or group; grant the right to vote

Corporate Governance

1. The control structure of a corporation.

2. The term used, following recent

Government sponsored reports, to describe

the policies and procedures that the

company’s directors’ employ in their

conduct of the company’s affairs, and their

relationships with shareholders to whom

they are responsible as managers of the

shareholders interests in the company, and

of its assets.

Gross Domestic Product (GDP)

The total market value of all final goods and

services produced in a country in a given

year; equals total consumer, investment and

government spending, plus the value of

exports minus the value of imports.

Demand-Pull Approach

Developing new products on the basis of

market demand rather than on that of

company-generated ideas.

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Warehouse

Storage for goods and services prior to

customer purchase

Bibliography

http://www.Google.com/

http://www.waridtel.com/

http://www.brandchannel.com/

http://www.pta.gov.pk

http://marketingteacher.com/index.htm

http://tutor2u.net/default.asp

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BIBLIOGRAPHYBIBLIOGRAPHY

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http://www.brandsaward.com/2008/index.html

http://www.dictionary.com/

Append

ix

ATM: Automated Teller Machine

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APPENDIXAPPENDIX

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BCM: Business Centre Manager

BEC: Board Executive Committee

CEO: Chief Executive Officer

CIO: Chief Information Officer

CLI: Caller Line Identification

EGPRS: Enhanced Grand Packet Radio

Service.

FM: Franchise Manager

FNF: Friends and Family.

GM: General Manager

GPRS: Grand Packet Radio Service.

GST: General Sale Tax.

GSM: Global System For Mobile

Communication

MMS: Multi Media Message.

RSM: Regional Sales Manager

SMS: Short Messaging Service.

VPN: Virtual Private Network.

VAS: Values Added Service.

WAP: Wireless Application Protocol.

ZSM: Zonal Sales Manager

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