Acknowledgements

Here, we would like to specify that this final term project for the

course, Advertisement & Sales Promotion, is dedicated to our Parents

who have always been at our sides in all walks of life.

My teachers and Professors have given us the knowledge, skills and

the moral support due to which we got the courage to learn, fight and

make our ways through the ever competitive environment.

It is a fact that nobody is independent. There is no free lunch in this

world means that you have to sacrifice something in order to get

something. We, therefore, acknowledge all of our friends who

provided us with their time, information, knowledge and gave us

moral support and encouraged us in order to finalize this project.

Above all, we give our regards, honor and greatest respect to Mr.

Asad Awan who awakened the potential inside us that there is nothing

in this world that is impossible for us to achieve. His teachings, words

of wisdom and advices & suggestions will always be of great and

foremost importance to us in our whole lives.

HYPOTHESIS

We have developed a hypothesis for our case study keeping

in view the past, present and future scenario of telecom industry,

the respective operators and their consumers in Pakistan. Then the

economical situation and the business composition of the country

were also noticed. It is stated as:

“Warid Telecom has the best corporate strategy

but it is not executing it in a real or effective

manner, thus Warid Telecom is not enjoying a

good brand perception among the consumers.”

Telecom Market Trends in Pakistan

Introduction & Overview

The structure of the Pakistan Telecom sector is based on

the traditional monopoly model wherein the state has assumed the

responsibility of developing and supporting the telecom

infrastructure. Until recently the legislation dating back to 1933

and its amendments still governed the telecom sector. As part of

the liberalization agenda, the Government of Pakistan (GoP)

started privatization of Allied and Value added services such as

Cellular, Paging, Domestic Data as early as 1990’s but it was in

October, 1996 with the enactment of the telecom act that has

proven to be the road map for the telecom industry.

SYNERGY INTRODUCTION

Synergy Advertising Pvt Ltd was formed in 1999 as a

collective of advertising professionals who wanted to run an

advertising agency that stood out from the rest by virtue of its

professional conduct and solutions oriented approach to

advertising communication. It was renamed in 2002 as Synergy

Advertising, today the company is the fastest growing integrated

media communications group in Pakistan with subsidiaries

specializing in vast variety of advertising solutions and services

such as event management, market research, branding, public

relations, media buying and planning and a full range of design and

creative services for all types of ATL & BTL media.

SITUATIONAL ANALYSIS

1.Company Analysis

Warid Telecom began its operations on May 23, 2005. In

less than a year, they have a customer base of over 4.8 million and

operate in over 110 cities across Pakistan, providing quality service

to all its customers. Warid Telecom has grown at one of the fastest

growth rates in Asia i.e.; 853 %, becoming the 3rd largest GSM

operator in the country.

Warid Telecom

A leading GSM mobile company, Warid Telecom

International is an Abu Dhabi based mobile telecommunication firm

providing telephony services in Pakistan.

Warid Telecom has implemented a new and modern

corporate identity as a result of the dynamic changes taking place

in the telecom industry in Pakistan. With a reflection of a new

strategy, their 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.

Warid's corporate identity seeks to reflect the changes in

telecom sector in relation to helping customers keep pace with

rapidly changing technology in the field of communication, and to

harmonize the customers' perception of their brand with the

quality and range of their services. The objective is to provide

optimum level of support and care through highly skilled and

motivated team of professionals and through maximum network

coverage and clear connectivity that they have committed to

provide. Warid Telecom is backed by The Abu Dhabi Group, one of

the largest groups in the Middle East and the single largest foreign

investor group in Pakistan.

The company has expanded rapidly in Pakistan and it is

because of the immense potential that the group saw in the

telecom business that they have decided to bid for the last GSM

license being offered in Bangladesh as well as a new license in

Congo and Uganda.

In addition to its cellular GSM subsidiaries, Warid

International has formed a company by the name of Wateen

Telecom (Pvt.) Limited in Pakistan for laying out a 5000+ km fiber

optic network through the length and breadth of the country,

connecting 75 major cities and providing a brand new, state-of-the-

art network for Warid and other operators in Pakistan to leverage

their services on.

Business Overview

Warid Telecom was awarded the GSM license by Pakistan

Telecommunication Authority (PTA) on May 26 2004 for a fee of

$291 million, as part of the government's initiative to bring in

foreign investment and expertise in the telecommunication sector

and it begin its operations on May 23, 2005.

The current mobile penetration in Pakistan is hovering at

around 18% having a large population of over 15.5 million; thus the

mobile market experiences a burgeoning appetite for

communication services. This cellular penetration rate of Pakistan

highlights the immense potential for growth available in the

industry.

In order to gain a footing in the mobile market Warid

Telecom has partnered with Ericsson to provide network solutions

for the business. Being one of the top cellular vendors established

in over 140 countries & with vast experience in the industry,

Ericsson has been able to offer Warid Telecom the latest

technology required for their business. This, coupled with Warid

Telecom's sound financial backing, has placed it in a strong

strategic position to capture the market share in the tapped as well

as the untapped market.

In accordance with its business strategy, Warid Telecom

plans to establish itself as a leader, and increase the overall market

size through broader coverage of all income groups. Warid

Telecom's superior products, high quality of service, affordability,

and customer support have enabled it to not only capture market

share from existing players, but also acquire the so far untapped

market.

2.Consumer Analysis

Route to Customer Satisfaction

Caring through CRM

The CRM platform will play an integral role in all aspects of

customer management, including:

Monitoring and capturing data on customer behavior.

Supporting customer analysis.

Managing ongoing customer needs and inquiries.

Gathering feedback on existing products & services.

Shaping new product/service offerings.

Monitoring communication and promotional campaigns.

Develop the core brand proposition.

Identify the target market that is the most valuable to Warid

Thoroughly understand the needs of the target market.

Satisfy the unique individual needs by unique individual offerings.

Collaborate with other organizations to provide the bundle consisting of the highest value to the customers at

the least cost to the organization.

The CRM platform will facilitate Warid’s objective of

understanding its customers on an individual basis, allowing Warid

to offer personalized, differentiated services. The differentiated

services will be made possible by using advanced CRM techniques.

Understanding historic customer behavior and anticipating

future behavior.

Interpreting patterns of behavior while at the same time

accommodating individual personality and the lifestyle context

in which the device is used.

The consumer desires to have smooth mobile

communication with the effective value additions like GPRS, MMS,

Conference calling etc for corporate needs and so the brand offers

the strong infrastructure providing top of the line technology that

can bear strong climatic / environmental conditions and the

financial strength to stay in with the emerging technology. It also

provides the convenience in connectivity and accessibility. Warid

cares for its customers with a 360 degree approach to customer

interaction & involvement, owing to its Infrastructural strength.

Research & Analysis

We conducted the research relating to all the connections of Warid

services to analyze the consumer perspective and preferences. The

research has been carried out within Lahore including all the females

and males.

Which connection do you use?

Which Warid campaign do you like?

J azz17%

Warid40%

U-Fone20%

Telenor14%

Insta3%

Paktel6%

Chota Bill sirf Zem k saath

30%

Zoom – aa jao na22%

50 Free minutes1%

Friends and Family22%

Post-paid is Warid Zahi

25%

Have you ever seen the Warid advertisements?

Why do you like these ads?

Yes73%

No27%

Music

23%

Colors

17%

Concept

47%

Others

13%

Do you find these ads persuasive?

3.Market Analysis

In Pakistan, apart from the license issued to PTCL, the

following operating licenses have already been issued to the

private sector;

Yes60%

No40%

Cellular Mobile

Data communications

Voice mail services

Card operated pay-phone services

Audiotex services

Electronic mail service

International Calling Card

Satellite Services

Burglar Alarm Service

Vehicle Tracking Systems

Brand Personality & Positioning - Description

Warid has positioned itself as the lowest cost provider of

services. However, while this positioning was important initially to

gain customers, now Warid focuses on building its brand by

providing value to its customers in a way that will distinguish it

from competing brands. As now the market gets increasingly

saturated, the focus is moving from customer acquisition to

customer retention.

4.Product Analysis:

CaringOwing to its strength, Warid cares for the individual and the society as a whole

ReliableReliability of

service unmatched

qualityMaturePresents the outlook of a calm, settled and sophisticated solution provider

FlexibleProvides the solutions

for everyoneAdapts to changing

needs

Dynamic/Forward LookingIn line with market

dynamismsFuture oriented

Smart/IntelligentInherently smart Connects with the

customer desires on all levels

StrongThe financial

backingThe infrastructure

to support their promises

The strengt

h to care

WARID is working on providing its different services like Warid

prepaid, postpaid and zoom but we are focusing and analyzing its

PREPAID service.

Warid – Zem

Warid Zem is the most affordable mobile communication

solution based on highly customer oriented pre-paid packages to

understand and offer flexible options for customers from all walks

of life.

Warid Corporate

ZEM ZOOM ZAHI

Brand Personality – Zem

ZEM (PREPAID) SWOT ANALYSIS

Strengths:

• Zem lies under the umbrella of Warid, thus supporting and

promoting this sub-brand.

• Warid Zem provides the efficient billing option like 1 sec, 30 sec

which is not provided by other connections.

• The Usage of top notch technology provides immediate update

of remaining balance after every call.

• GPRS/MMS subscription for free.

• Voice clarity is its big strength.

FriendlyLocal, knows me and my

needsThe strength to careThe strength to care

ColorfulOffers diversification

EconomicalEasy on the Pocket

InnovativeKeeps growing, keeps offering new facilities, options, stays

ahead of the rest

FlexibleThrough its various

packages

AffordaAffordable ble

ConnectiConnectivityvity

• It has efficient connectivity.

• It provides variety of packages to choose from, appealing to

varying segment of society.

Weaknesses:

• A very few areas are covered by Warid Zem – service not

available everywhere.

• Chota bill advertising campaign confuses the brand positioning

with Warid Zahi (Postpaid). As the matter of fact billing is

associated with the post paid account not with pre-paid.

• Its rural expansion is not aggressive due to lack of significant

services such as rural distribution and marketing activities.

• Zem lacks in its differentiated positioning, as other competing

brands. E.g. every pre-paid package depicts outgoing youth in

their communication.

• No systematic communication building of the brand is in step-

wise pattern in the minds of people.

• Zem may loose identity and end up just to be known as ‘Warid

Pre-Paid”

• It has danger of loss of focus, which could result from spreading

out too much too quickly. (Everything for everyone)

• Hiatus communication strategy with Zem puts brand

communication invisible most of the time. Whereas,

competition has parallel. Execution strategy with post paid and

pre paid brands.

Opportunities

• Market is at a growth with major traffic on prepaid acquisitions.

• The increasing awareness of GPRS & MMS is expected to rise in

the recent years.

• VAS will be the new differentiating factor after the price wars.

Their importance will become more prominent in the future.

• The untapped rural audiences are the next potential consumers

of the cellular technology.

Threats:

• Zem faces the greater resistance from Jazz, Prepay and Talk

Shawk in view of greater focus and clarity of proposition.

• It lacks the comprehensive infrastructure, especially in the rural

areas that could lead to stagnation in revenues and actual

number of users.

5. Competitive Analysis:

Six operators are currently providing mobile cellular

telephony in Pakistan. These are Mobilink, U-fone, Warid Telecom,

Telenor, Insta and Paktel.

Paktel brought a revolution in the way Pakistanis

communicate by introducing mobile telephony in Pakistan. In 1991

Paktel launched the first mobile service in Pakistan, at a time when

the concept of mobile phones was alien. Initially owned by world

renowned company Cable & Wireless; Paktel, through the use of

TDMA technology developed a market of mobile cell phones by

meeting the basic need of mobile one-to-one voice communication.

It provides GSM coverage in above 300 cities and towns, a number

which is increasing everyday.

Mobilink GSM, a subsidiary of Orascom Telecom, started

its operations in 1994, and has become the market leader both in

terms of growth as well as having the largest customer subscriber

base in Pakistan - a base of over 24 million and growing.

U-fone, the company commenced its operations on January

29, 2001. With their focus on U, they offer efficient and friendly

customer services through 21 company-owned Sales & Customer

Service Centers across Pakistan. With a total current investment of

over $350 Million, including a recent contract of $161 Million for

expansion & capacity for 2004-05, PTML believes in solid

commitment to growth, security & reliability. Currently, with a

market share of over 24%, and an aggressive commercial plan, the

customer base has more than tripled from the last fiscal year to

over 4.5 million subscribers.

Telenor acquired the license for providing GSM services in

Pakistan in April 2004, and launched its services commercially in

Islamabad, Rawalpindi and Karachi on March 15, 2005. On March

23, 2005 Telenor started its services in Lahore, Faisalabad and

Hyderabad. Telenor has become the second largest cellular

network in Pakistan by launching over 1100 destinations within

two years.

The elements that have successfully propelled Warid as the

fastest growing cellular provider in Pakistan are:

Affordability & Availability

Enhanced Customer Experience through CRM

Innovative Routes to Market

Competitive Advantages of Warid:

Differentiated services

Unique billing options (per sec / per 30 sec / per 60 sec)

Lowest Rates

On Net & Off Net free minutes

Other VAS services

Late Night Package

SMS International Roaming

Cost Advantage for customer

Least cost of ownership

Customized packages for different usage bands.

Problems in Services

GPRS of Waridtel is somewhat expensive, each time one

connects to Waridtel GPRS server he has to pay extra 3.80 per

connection, keeping in mind that downloading charges are extra.

Waridtel should keep an eye on its traffic of GPRS to attract

business class.

Other than this, coverage of Waridtel is fine but they have

some network problems as their e-mail didn’t reach some times.

Waridtel SMS server goes down the website is not

professional build. Waridtel is overall good Telecom company but

they should improve their services in order to become giant in the

industry.

Target Market

Warid Prepaid targets the young customers based primarily

on their income status. Their brand communication shows users to

be aged between 18 and 24, young professionals, students and

ordinary individuals. The primary concerns of this market are the

rates, and the need to stay in touch.

Justification: The strategy of Prepaid is to create a brand

that appeals to a wide range of market segments from the youth to

young professionals and to ordinary men and women.

Warid’s Objectives

Warid Telecom has implemented a new and modern

corporate identity as a result of the dynamic changes taking place

in the telecom industry in Pakistan. With a reflection of a new

strategy, they have the following aims and objectives:

To establish Warid as the leading brand in the market, covering

a large number of destinations within Pakistan.

They seek to be trendsetters in customer service, with the “one

stop” concept for all the telecom requirements. This will be

achieved with the provision of a one window operation for on-

the-spot issue resolution and one stop service.

Customers are the most important element in any organization.

Warid distinguishes them as its biggest assets, and strive for

excellence by listening to their needs. Warid works with its

customers to gain 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 demands.

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. They strive to

provide optimum level of support and care through maximum

network coverage and connectivity.

Warid Telecom decided to opt for GSM (Global System for

Mobile Communication) technology as it is the global standard

for digital cellular telephone service. GSM networks support

enhanced data applications and more than 1 billion customers in

109 countries are using this technology. Warid Telecom would

be launching its cellular services based on 900 and 1800 GSM

technology, in order to optimize the utilization of frequency,

thus ensuring the highest quality and service.

CREATIVE

The new campaign of Warid prepaid LCR offers 30 seconds 60

paisa on every call 24 hours. The objective is to deliver the right

message to right people through right media. This objective can be

accomplished by implementing IBP (Integrated Brand Promotion).

ATL & BTL activities are used to promote the benefits of new

campaign and enhance the interests of target market to enjoy this

package.

MEDIA STRATEGY

It is hard not to notice the mobile phone advertising campaigns in

Pakistan. The mobile phone and services advertisements are in the

media, on billboards and everywhere else imaginable. The competition

among the mobile phone companies is driving this trend of intense

advertising campaigns. The marketing department of every major

mobile phone company is trying their best to get attention with catchy

phrases, jingles by pop artists and attractive models to represent their

products and services.

Warid Telecom is also spending a lot of money on its advertising and

is launching a new campaign LCR. Warid’s media objective is to reach

all communities and segments with tailored communication, so as to

retrieve identical and viable trends towards Warid and its related

brands. Their ads are vibrant and colorful, conveying a sense of

excitement and empowerment.

Warid will be implementing Flighting schedule for its new campaign.

The ads will run for two weeks following with a break and then come

back again. It is done to get people aware of the new campaign which

offers low call rates and to check the response of the target market

(youth). If people respond positively then it means that the campaign

has a good impact and gained the interest of targeted youth.

SALES PROMOTION

This is the tool used to accelerate short term sales by building brand

awareness and encouraging repeat buying through samples and

displays. The campaign LCR is very attractive and is expected to

attract the youth. They can now enjoy calling to their loved ones and

friends at low call rates and enjoy its benefits. It is very effective way

to promote the new campaign of Warid Prepaid as it will enhance the

interest of target market and encourage them to buy the package of

30 seconds 60 paisa on every call.

EVENT MARKETING

Occasion based Campaigns

Warid has launched different campaigns on different

occasions and will continue to do so. The objective of these

campaigns is to burn the brand essence in the minds of the existing

and potential audience and to establish the “Strength to Care”

position as the source of the brand building platform. The basis of

these campaigns is cashing the opportunity, where addressing the

occasion based communication needs is destined to bring in added

customer base.

Eid Campaign:

A corporate campaign, featuring ‘Free MMS & SMS on

Zahi’ and ‘Free SMS on Zem’, for 3 days of Eid appeared 3 days

before the occasion. The promotion will features the reduced

international call rates for 3 days. The targeted communities will

be women, youth, and Young/Adult professionals who were

specially benefit, as it allowed them to get in touch with their

families (local and abroad) on the occasion. The first 3 communities

are actually sensitive to price, and this was the right strategy to

tap their share of pocket. This also helped bringing in their

loyalties. Thus the promotion urges existing users and non-user to

patronize relevant packages of Warid.

Pakistan Day Campaign:

A campaign will be carried out on 14 August. The reason for

that campaign was to align Warid’s image with patriotic feelings

that arise on that day. The campaign will pay tribute to the leaders

who made the dream of Pakistan a reality and aligned Warid’s

features and attributes with their sayings. The feel of the campaign

is patriotic. It not only focuses on the greetings of National day but

portrays Warid as a brand that is merged with the foundation of

Pakistan by following in the footsteps of its nation’s heroes. The

image completely complements the concept of the campaign.

Valentine’s Day Campaign:

This campaign on the Valentine’s Day will have a very

pleasant and fun feel to it. It basically offers download and

packages specially designed for Valentines as Warid aims to keep

you connected with your loved ones throughout the day.

Jashan-e-Baharan Campaign:

Warid’s campaign is not only about celebrating but to keep

others safe from the hazards of this festival. The feel of the

campaign is fun but with a hint of seriousness and caution. A two

step campaign in which the first step was to highlight the hazards

of kite flying and how to keep it safe. The second step was to take

initiative and arrange a major festival outside the city. The purpose

is to be present throughout the Jashan-e-Baharan festival and

create a positive and caring image of Warid.

New Year Campaign:

An aggressive New Year campaign will be launched from

all sides. Warid aims to establish itself as the leading brand in the

market and to be one with the people of Pakistan

ATL Activities:

HOARDINGS

PRINT ADS

BTL Activities:

POSTERS

FLYER FRONT

FLYER BACK

STANDEE

BUDGET

Photo shoot = Rs. 6 lac

TVC Production = Rs. 2.5 million

Campaign charges = Rs. 1.5 lac

Hoardings at 4 locations = Rs. 60 lac

1 hoarding each = Rs. 15 lac

Posters = Rs. 2 lac

1 Poster each = Rs. 150

TV – on air = Rs. 1.5 billion

Radio = Rs. 0.5 million

Print ads = Rs. 6 million

CONCLUSION

Research Findings

People believe that Warid is now spending a lot to

enhance the quality of their ads and that’s why people not

only watch their ads but also like them and are now also

being persuaded and motivated to be a part of Warid’s

family.

Due to the selection of models (as their brand

ambassadors) in their campaigns, people find these ads

very appealing.

The majority of the people are using Warid’s connection

and the surprising thing is that not only the Warid

customers but even the people who don’t have Warid

connection also use to watch Warid’s ads and are of the

view that Warid is a superb media user but it doesn’t

knows the techniques of using media for advertisement

purposes effectively.

After Mobilink, Warid Telecom is using media more than

any other mobile phone service.

People appreciated their high budget ad campaigns.

SWOT Key Findings

Warid Telecom is providing many user friendly packages

which are available on very cheaper rates as compared to

its other competitive networks.

It has introduced very economic and user oriented

packages for postpaid consumers and prepaid consumers

as well.

Warid Telecom is unable to get better response of its

packages because its competitors are advertising their

packages and services in the more strong and attractive

manner.

Warid is facing difficulties in increasing its market

because of its less strong advertisements and campaigns

and lack of vast range of services to a big number of

cities.

Warid Zem (the-postpaid) and Zahi (the-prepaid) are its

packages which are highly appreciated by its users.

Campaigns Key Findings

Waird Zem is facing strong resistance from competition as

Telenor Talkshowk and Mobilink Jazz have become very

strong brand through frequent adverting campaigns.

Warid’s ads are not too much liked by people.

HENCE PROVED!

Hypothesis for this study “Warid Telecom has the best corporate

strategy but it is not executing it in a real or effective manner,

thus Warid Telecom is not enjoying a good brand perception

among the consumers.” is proved to be true on the basis of our

survey, SWOT analysis and by the analysis of their advertisements.

RECOMMENDATIONS

The major problems which Warid Telecom is facing today are

just due to the fact that the segmentation of their target

audience is not appropriate. Thus they need firstly need to

identify their audience clearly so that the message could be

easily and effectively communicated.

Warid Telecom needs to register their brand i.e. people are

not much familiar to “Zem”, “Zahi” or “Zoom” and just know

them as “Warid Pre-Pay” and “Warid Post-Paid” respectively. So

in order to make it familiar, they need to establish some

strategies for its proper registration.

After its proper registration in the market, it then needs to focus

on its brand positioning and brand equity by using different

advertising strategies. Warid Telecom should have to develop

some more creative ideas for its advertising and should

effectively communicate to its audience.

Another important step which Warid Telecom has to take is to

create the brand loyalty among its consumers and then should

have to move towards brand parity.

Warid Telecom is always found to be a follower both in its

advertising and its packages. It, therefore, try to take some

initiatives in order to win the situation. It should have to come

up with some unique and innovative ideas.

The product distribution of Warid Telecom is very weak. Their

services are not available everywhere in Pakistan. Thus in order

to remain stable in the market, it has to be strengthen by having

joint ventures with both emerging and small companies.

They should also give more attention towards the BTL

activities.

VAS – Value Added Services should be focused as well in order

to get popularity among the youth as they are the one who are

much interested in such packages.