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  • 1. Global Marketing Strategy Global Company versus Local Company
  • 2. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Group Members  Ali Zulfiqar  Noman Shiekh  Safwan Saleemi  Asadullah Bashir  Javed Iqbal Submitted To Mam Izah Rehman The University of Lahore (UOL) Lahore Business School (LBS)
  • 3. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Global Marketing Strategy Final Report – Task  Introduction of Companies  Marketing Strategies of Company A and Company B  Evaluation of Strategies of both Companies  Conclusion/ Results of Strategies of both Companies  Recommendations/ Suggestions to both Companies
  • 4. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Table of Content Ufone  Introduction  Company Profile  Brand Story  Mission  Vision  Business Portfolio  Services  Vas  Marketing Department  Brnads  Marketing Strategies & Analysis  Sub Department of Marketing Telenor  Telenor Group  Introduction  Company Profile  Offering mobile financial services  Contributing to Pakistan's economy  Internet service provider  Corporate Responsibility  Environmentally conscious  Mission Statement  Vision Statement
  • 5. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal  Telenor History  Telenor facts  Business Portfolio Marketing Strategies  3G License  Ufone Package Information Leak Mobile Banking Market Mix  Product  Price  Place  Promotion Market Segmentation Target Market Market Growth Positioning Differentiation Advertising Campaign  Advertising Campaign Objectives Media Strategy (Electronic Media Only) Sale Promotion
  • 6. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal SWOT Analysis  Strength  Weakness  Opportunity  Threats Porter Five Forces  Bargaining Power of Supplier  Bargaining Power of Buyers  Threats of New Entrants  Revival of Competitor  Threats of Subsidies PESTLE Analysis  Political  Economical  Social  Technological  Environmental  Legal Evaluation Conclusion Recommendations
  • 7. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal
  • 8. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Introduction Ufone GSM is a Pakistani GSM cellular service provider. It is one of the five major GSM Mobile companies in Pakistan. In January 2001 Pak Telecom Mobile Limited (PTML) a wholly owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) started its operations under the brand name ‘Ufone’. After the partial privatization of the parent company PTCL, 26% of shares and control was sold to Etisalat and Ufone became a part of the Emirates Telecommunication Corporation Group. In 2012 Ufone launched their social networking service for their Ufone customers Club Ufone. Type Private Industry Telecommunication Genre Subsidiary Founded January 29, 2001 Founder PTCL Headquarter Islamabad, Pakistan Area served 2336 Cities CEO Abdul Aziz Products Post Pay, Pre Pay, UPaisa Net Income Rs. 2.5 Billion (2012)
  • 9. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Company Profile Pakistan Telecommunication Company Limited (PTCL) that started its operations in January 2001 under the brand name 'Ufone'. As a result of PTCL's privatization, Ufone became a part of the Emirates Telecommunication Corporation Group (Etisalat) in 2006. Since its inception, Ufone has focused on the people of Pakistan, empowering them with the most relevant communication modes and services that enable them to do a lot more than just talk, at a price that suits them the most. Along with the claim of lowest call rates, clear sound and best network, Ufone offers its customers simplified tariffs with no hidden charges. With a strong and uniquely humorous communication direction that has now become Ufone's signature across all advertising media, Ufone gives its customers many reasons to smile. This customer focus and best offering has allowed Ufone has built a subscriber base of over 24 million in less than a decade. Ufone has network coverage in 10,000 locations and across all major highways of Pakistan. Ufone currently caters for International Roaming to more than 288 live operators in more than 160 countries. Ufone also offers Pakistan's largest GPRS & BlackBerry Roaming coverage available with more than 200 Live Operators across 122 countries. More recently, Ufone has become a focused and intensive leader in VAS, constantly introducing innovative services, which have been the first of their kind in the Pakistani cellular industry. As the world of telecommunications advances, Ufone promises its customers to stay ahead, developing and evolving, to go beyond their expectations, because at Ufone, it's all about U.
  • 10. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Story Ufone Brand It's always about you In order to evolve with our customers and to keep pace with your needs, we rejuvenated and revamped our image by changing our visual identity At Ufone we understand the value of words and the need to communicate effectively and efficiently at all levels of society, which is why our primary focus is on U, our valued customers bring strength to our company. With a fresher look than is accepted and appreciated across the board by people of all ages, we aim to connect with you and provide you state of the art services. No matter who you are, where you are, what you want to say, how you want to say it or how you feel, you are our focus. Because at Ufone, it's all about U!
  • 11. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Mission Statement “To be the best cellular option for U”.
  • 12. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Vision Statement “To be the leading telecommunication service provider in Pakistan by offering innovate communication solutions for our customers while exceeding shareholder value & employee expectation.”
  • 13. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Business Portfolio Brands Brands Target Market Reason Targeting PostPay Corporate Class High Usage for Business & Working People Uth Pack Youth Night Dwellers Packages Packages Target Market Reason For Targeting Public Demand Lower Class/Rural Youth High Usage Uwon Lower/Social Ecnomic Class High Usage 5 ka 15 Ladies Ladies Intention of 5 mint chat usually exceeds to 15 min or more Walkie talkie Working Class Call Conferencing
  • 14. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Services Both Post-Paid and Pre-Paid Ufone subscribers can enjoy any/all Ufone services including GPRS based services (MMS, Ufone Internet, Pocket Stocks), Global SMS, etc. Ufone is proving these all services to its consumers;  Internal Excess  Online Billing Payment  Power SIM  WAP  International Roaming  Voice Mail  Call Management  Messaging
  • 15. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Mobile Products (VAS)  Utalk  Missed Call Notification  Phonebook Saver  Trivia Quiz  Ushare  Uloan  Voice Bucket  Utunes  Awaz SMS  Uchat  Ugames  Call Block  Self Service Kiosk  U kisaan  U health  Ufone prize bond  Ubazar  Hajj Guide
  • 16. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Marketing Department The head of marketing department is designated as CMO- Chief Marketing Officer or Vice President of Marketing Head. The department has further 3 subheads working in specialized manner according to the skills and abilities of the employees. Brands There are basically two products of the Ufone which serves as the brands of the company. This sub-head is responsible for the execution of the Brand Activities. Ufone is performing the promotional activities in Brands sub-head, including advertising over Electronic media and print media. The promotional strategies are made by the sub-head to get the implementation. Marketing Strategy and Analysis The sub-head is working in order to formularize the marketing strategy according to the market requirement and consumer preferences. The analysis about the market trend is done and the strategies are made in relevance. Moreover, competitors are biggest source of reacting towards the marketing activities. Ufone is having a proactive marketing concept in context of competition.
  • 17. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal VAS sub-head is responsible for proficient functioning of conveniences provided to the customers, these VAS are Virtual Private Network, Call Management, Missed Call Notification, Phonebook Saver and a host of Infotainment and Entertainment services. Sub Department of Marketing  Brand Activation  VAS  International Roaming  Media Planning (Marketing Strategies)  Marketing Finance  Marketing Operations CMO Head of Departments Assitant Managers Management Trainees Internees
  • 18. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal
  • 19. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Telenor Group Telenor Group is a Norwegian multinational telecommunications company headquartered at Fornebu in Bærum, close to Oslo. It is one of the world's largest mobile telecommunications companies with operations in Scandinavia, Eastern Europe and Asia. In addition, it has extensive broadband and TV distribution operations in four Nordic Countries, and a 10-year-old research and business line for Machine-to- Machine technology. Telenor owns networks in 12 countries, with operations in 29 countries if included their 33% ownership in VimpelCom Ltd. Telenor is listed on Oslo Stock Exchange with a market capitalization per November 2013 of kr 223 billion, top three of all companies listed on the Oslo Stock Exchange. Type Private Private Industry Telecommunication Founded 1855 Headquaters Fornebu, Norway CEO & President Jon Fredrick Baksaas Product Fixed Line, Mobile telephony, internet, digital television, it services, IPTV Owners Government of Norway Net Income 98.516 Billion NOK (2011)
  • 20. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Introduction Telenor Pakistan is 100% owned by the Telenor Group, which is an international provider of voice, data, content and mobile communication services in 13 markets across Europe and Asia and an additional 17 markets through its ownership in VimpelCom Ltd. Telenor Group is among the largest mobile operators in the world with over 166 million mobile subscriptions (Q4 2011) and a workforce of 33,000. Telenor started out as a public company in 1855. Currently, Telenor Pakistan has a total subscriber base of 35.2 million with over 26% SIM market share. Type Subsidiary Industry Telecommunication Founded 2004 Headquaters Islamabad, Pakistan CEO Lars Christian Products Prepay, Postpay, Easypaisa Parent Telenor
  • 21. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Company Profile Telenor Pakistan is 100% owned by the Telenor Group, an international provider of high quality voice, data, content and communication services in 12 markets across Europe and Asia. Telenor Group is among the largest mobile operators in the world with 150 million mobile subscriptions and a workforce of approximately 32,000. Telenor Pakistan has invested over US$2.3 billion in the local economy so far. It acquired a GSM license in 2004 and began commercial operations on March 15, 2005. In October 2012, Telenor Pakistan’s crossed the active subscriber base is 30 million retaining its position as the country's second largest mobile operator. Offering mobile financial services Telenor Pakistan acquired 51% of Tameer Microfinance Bank in November 2008. In 2009 it launched 'Easypaisa' to become Pakistan's first telecom operator to partner with a bank to offer mobile financial services across Pakistan. Contributing to Pakistan's economy Telenor Pakistan continues to contribute to Pakistan's economy. It has created 2,800 direct and 25,000 plus indirect jobs and has a network of over 200,000 retailers, franchises and sales & service centers, thus providing a means to livelihood to thousands. Telenor Pakistan contributed over Rs. 121 billion in various forms of direct and indirect taxes to the economy of Pakistan since the beginning of its operations in 2005.
  • 22. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Internet service provider Telenor Pakistan provides wide EDGE connectivity across the country. It has one of the largest data networks (GPRS) in Pakistan providing Internet services to customers. Corporate Responsibility In addition to our focus on extending the benefits of mobile communications, Telenor contributes to society through selected social investments. The company’s social investments are focused on long- term partnerships that can contribute to lasting change. Focus areas for Telenor Pakistan are; Disability, Education, Health, Emergency Response and Employee Volunteerism. Telenor Pakistan's flagship corporate responsibility program, Khuddar Pakistan, aims to create dignified opportunities for persons with disabilities. The purpose is to become the most disabled-friendly organization in Pakistan in terms of employment, service, and community support. Environmentally conscious Telenor Pakistan has taken and continues to implement a number of environmentally-friendly initiatives. These include mainstreaming energy efficiency and alternate energy solutions, and implementing occupational health & safety practices that comply with international standards.
  • 23. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Mission Statement We’re here to help our customers We exist to help our customers get the full benefit of being connected. Our success is measured by how passionately they promote us.
  • 24. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Vision Statement We provide the power of digital communication, enabling everyone to improve their lives, build societies and secure a better future for all. Our vision to empower societies is a clear call to action. We bring vital infrastructure, new services and products that stimulate progress, change and improvement.
  • 25. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Telenor History Telenor’s worldwide mobile operators Highlights from their mobile operators and the markets in which they operate.  Norway  Sweden  Denmark  Ukraine  Russia  Hungary  Montenegro  Serbia  Pakistan  Bangladesh  Thailand  Malaysia Telenor facts One of the world’s largest mobile operators with 105 mill. Mobile subscriptions* Norway’s leading Telecommunications Company Largest provider of TV services to the Nordic market Our largest consolidated mobile operations:  Kyiv star, Ukraine 17.7 mill subscriptions  DTAC, Thailand 11.2 mill  GrameenPhone, Bangladesh 9.4 mill  DiGi, Malaysia 5.6 mill  Telenor, Pakistan 4.6 mill  Pannon, Hungary 3.0 mill  Telenor, Norway 2.7 mill
  • 26. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Business Portfolio Brands Products Brand Target Market Reason TalkShawk Ladies, Middle Class/Lower Class High Usage Djuice Youth Night Dwellers Postpay Business Class High Usage for Business & Working People
  • 27. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Marketing Strategies
  • 28. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal 3G License Ufone  PTA was willing to auction 3G license 2008  Due to Government's negligence and lack of focus.  The matter of the auction dragged on, being raised again in 2012 and 2013  Finally auctioned on 23rd April 2014. 3G license), while the 3G licenses were auctioned to Ufone (5 MHz).  The obvious process is to make a package first for 3G technology and then produce a TVC around it.  Now according to various blogs and websites, the Ufone 3G package has been leaked.  Apparently, there are three different versions of 3G package by Ufone with varying cost and other details.  Some bloggers have claimed it scam while others think that Ufone itself has released these three versions to gauge public’s response.  However, you should keep in mind that these packages are not valid at all as Ufone has yet to acquire a license from Pakistan Telecommunication Authority (PTA) by paying fee for 5MHz spectrum before it could go public with any kind of 3G package or ad. Telenor  (3G) mobile internet services in the April-23 spectrum auction  High-speed mobile broadband services in two weeks.  “We have already completed our network swap [upgrade] and all of our 8,000 cell sites are 3G-ready,” the company’s Chief Marketing Officer Irfan Wahab Khan  The Oslo-based cellular service giant and the second largest telecom operator by subscribers (35 million) is testing its 3G services on a trial basis in selected areas.  The company has already paid 50% fee for acquiring 5 megahertz band in 2100 MHz or 3G spectrum to Pakistan Telecommunication Authority, meeting the final prerequisite for launching 3G services in the country.  Telenor users could dial a code [*7799#] to find out whether the service is available in their area,” Khan said.  The company’s marketing head also said they would ensure the affordability of the service for low-income subscribers.  Khan said 10% increase [in subscribers] from 2G to 3G could cause a growth of 0.15 percentage points in the country’s GDP – an equal increase in mobile broadband penetration could boost the economy by 1.3%, he said.
  • 29. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Ufone Package Information Leak There are three speeds available from Ufone in following categories Package Name Speed U High Upto 64kbps U Super Upto 128kbps U Hyper Upto 512kbps Data Buckets for U High (64 kbps) Duration Data Limit Price (first Leak) Price (Second Leak) Daily 40 MB Rs.5 Rs.100 Half Day 50 MB Rs. 3 Rs. 120 Weekly 250 MB Rs. 25 Rs. 250 Monthly 1 GB Rs. 100 Rs. 500 Monthly 1.5 GB Rs. 150 Rs. 700 Monthly 3 GB Rs. 300 Rs. 1000 Data Buckets for U Super (128 kbps) Duration Data Limit Price (first Leak) Price (Second Leak) Weekly 250 MB Rs. 50 Rs. 350 Monthly 1 GB Rs.150 Rs. 700 Monthly 1.5 GB Rs. 200 Rs. 1000 Monthly 3 GB Rs. 350 Rs. 1750 Data Buckets for U Hyper (512 kbps) Duration Data Limit Price (1st Leak) Price (2nd Leak) Weekly 250 MB Rs. 70 Rs. 500 Monthly 1 GB Rs. 200 Rs. 750 Monthly 1.5 GB Rs. 300 Rs. 1500 Monthly 3 GB Rs. 500 Rs. 3000
  • 30. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Market Mix Product Djuice Telenor Djuice (short of digital juice) is a youth based mobile phone plan from Telenor. It is currently available in Bangladesh, Hungary, Montenegro, Norway, Pakistan, Sweden and Ukraine. Djuice was available in Malaysia, New Zealand and Thailand. According to its website djuice has close to 12 million subscribers around the world thus making it the second largest youth based operator in the world. Djuice History Djuice was launched in Norway and Hungary in 2003, Ukraine in 2004, Bangladesh in 2005, Pakistan in 2006 and Montenegro in 2008. In 2006 while Telenor was being rebranded djuice had also been rebranded. In 2012 the brand Djuice was merged with Telenor and all the balances of the Djuice customers’ accounts were confiscated by Telenor, which led to a number of dissatisfied customers. Djuice (Its Fun To Be Young) Launched In Pakistan in 2006. Design For The Youth. Uth Pack Ufone On 16 May 2013 Ufone Launch A Uth Pack Network For The Youth. Uth Pack is designed to target the urban youth which is looking for a lot more than just Voice, SMS and Data. The focus of its positioning “On Kar” revolves around the digital at heart and for those who wish to have a redefined cellular service. Uth Pack is the country’s first youth centric offer which is offering a wholesome product that is far beyond just the basic cellular offerings. The addition of numerous affinity partners offering discounts in more
  • 31. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal than 250 branded outlets across the country make this the most triumphant brand in the country. The discounts being offered are sure to ignite the lifestyle value for the youth and shall help save ones pocket money with the amazing discounts being offered. Price Ufone Cellular service providers are facing intense price competition in contemporary market. Customers perceive pricing as the heart of brand selection. Price has always been the core differentiation of Ufone. Ufone is the one who is offering least call rates off-network. Strategy: Ufone strategize to capture the existing pricing needs of its customers and use itwell on occasional or timely basis. For example Ufone offered very good call rates on international calls in Eid days. It offered hourly call rates in Ramadan when people were least likely to avail the offer that much that it might prove unprofitable for Ufone. It was a fantastic strategy to beautify the brand image in term of pricing in customer’s minds as well as remain profitable in doing so. Ufone follows market penetration pricing strategy and dynamic pricing strategy to meet the customer needs and ever changing price competition. Telenor Pricing across the borders is comparatively difficult from other decisions though it is believed that pricing is the most flexible and controllable marketing mix element. Companies operating in different markets experience extraordinarily difference across the borders. This can be due to the exchange rate difference and other barriers. But in our study, this matter is not much sensitive because of psychic distance factor. Cultural environment and a geographical neighborhood influence the pricing
  • 32. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal policy of Telenor. On the other hand, being a non-member of European Union, it can be totally opposite of the general strategies adopted by the companies located in European Union. Telenor’s pricing policy is influenced by different factors among them five are much important and they are indicated below:  Market survival  Sales growth  Market position  Maximization of Profits  Maintenance of product’s quality Though lower price is considered a suitable policy but in case of Telenor, it is affected due to regionalization but not so much but competition factor is given special consideration before development of price strategy. That’s why Telenor has high price strategy due to high quality products and services but at certain level penetration price strategy is adopted to stimulate sales growth. Here, at this aspect if we talk about the standardization or adaptation strategy of pricing, Telenor follows adaptation policy as well because it allows each local subsidiary or partner to set a price which is considered to be the most suitable for local conditions. On the other hand, lack of control can be the weakness of this strategy and it may require some cost for management. Place Ufone Place plays a very important part in the distribution and promotion of services. Competitors of Ufone are seeking to penetrate into places where others haven’t reached. Cellular service providers are drastically widening their network & coverage in every area of Pakistan. Mobilink
  • 33. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal has this edge in place excellence because it is the pioneer in cellular telephonic field. Strategy: Ufone strategize to widen its coverage to all places in Pakistan in order to meet the requirements of its increasing customer base. Now Ufone is heading from cities to remote northern areas in expanding its network. Ufone has intensive promotion in cities, but it is also considering improving its promotion in rural areas as well. Telenor To manage the foreign channels of distribution is a key area in a company’s efforts to be more competitive in the market. According to (Doole, 2001), as products become more standardized across the world, the ability to compete on customer becomes more vital. Channels of distributions developed by Telenor follow the cultural traditions of the target market because it is important to understand and manage cultural differences amongst different markets and Telenor has deep analysis of the markets before developing its positioning strategy because cultural differences add to control difficulties. In regional marketing, Telenor is taking advantages of his heavy infrastructural products and its financial worth. In our study, we found that company is adopting those strategies which are not used by the others commonly. To make a huge as well as direct investment in the form of acquisitions and wholly owned subsidiaries is high risky but more profitable decision for Telenor. Open borders give a number of alternatives for position the products and Telenor is using different distribution channels which vary from market to market and country to country. As Telenor is involved in telecommunication business so usually it doesn’t involve in physical distribution but it has the partnership strategy and on the local level, shops and customer care centers are used as place strategy.
  • 34. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Promotion Ufone Ufone believes in Integrated Marketing Communication which is a carefully blended mix of promotion tools. Ufone employ different marketing activities and channels to communicate and deliver value to customer. These activities are coordinated to provide maximum communication output. These communication channels includes:- Advertising, sales promotion, public relations, direct marketing & personal selling. Ufone strategize to carry out promotion in order to increase its market share. Strategy:  Advertising (discussed later)  Sales Promotion (discussed later)  Public Relations: Ufone is less conscious of developing its general public relations. But recently it has launched its “Hajj Guide” service on Ufone. It avoids getting in news stories and controversies but sometimes it proves inevitable.  Direct Marketing: Ufone employ on-road umbrella franchises where the directly market and sell their connections and Sims.  Personal Selling : Ufone administer personal selling facility to sell their PostPay connections targeting well to do people and businessmen  It won’t be an exaggeration to say that Ufone has placed itself where it is now through brilliant promotions. Telenor It is quite obvious from the business environment, that there is a rapid increase in competition and markets became mature at the regional level. These factors demand the companies to offer high quality products and services at competitive price level through suitable distribution channel.
  • 35. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal In addition to its traditional role of promoting products and services, international marketing communications is increasingly used to facilitate the company with an important way of differentiation in open internal market. According to our findings, there are a variety of promotional tools which are used by Telenor to inform and motivate its valuable consumers in the regional market. The company developed a standardized promotional package which is sufficiently flexible with the different ways in different cultures and norms. Besides it, that package is also flexible in such a way, in which subsidiaries can develop their own marketing positioning and related promotional strategy. During our study of Telenor as a regional company, we found that the company builds up its promotional strategies with two basic issues. First, the company should have the clear picture of the objectives for regional marketing communication strategy and, second is, how the company can combine the different promotional tools and activities for the higher level of cost effectiveness. On the other hand Telenor’s regional marketing communication strategy can be adapted because the market structures and distribution channels can be different from market to market and country to country. However, mostly these factors are not those, which can said to be crucial for the company like Telenor. Summarizing it, regionalization factor has influenced the Telenor’s promotional part of marketing mix but in all the way it has positive edge for the company and its business throughout the region.
  • 36. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Market Segmentation Ufone Cellular service market is a diverse set of people. Ufone as well as other cellular service companies segment their market on four bases, economy, age, gender & occupation.  ECONOMY : Upper class, Middle class, socio-economic class, lower class  AGE : Teenagers, youngsters, middle age, aged people  GENDER : Male & Female  OCCUPATION : corporate class, Business class, working class etc Telenor Segmentation is the process of dividing the total market for a good or service into several smaller, internally homogenous groups. Since Telenor is a customer oriented and quality driven company, it segments its market on the basis of various different dimensions.  Market dominated by low-end, low-ARPU customers (largely Untapped)  Relatively large emerging middle class segment (Basic in Telenor Terminology)  Strong youth culture with needs similar to other markets.  Private postpaid almost non-existent.  Small but profitable (high ARPU) Corporate/SME segment.  Women a largely untapped segment. Target Market Ufone Cellular phones are the technology of new era, the 21st century. These cellular phones are the main focus of our youngsters. All the cellular companies are targeting The Youth one way or other. Ufone is no longer
  • 37. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal a follower in this race. Its main focus is “THE YOUTH” of Pakistan which is its Target Market. Target marketing strategy Ufone has always been targeting Youth Market by using young brand endorsers or ambassadors. It always brings such packages and offers that precisely meet the needs of our young people. No doubt it has also launched packages, brands and offers for working people, business class, ladies and aged ones. Ufone seeks to target masses in the long run. Telenor Youth  60%  15% Youth they already have  Local Marketing  Specific Market Growth: 0 200000 400000 600000 800000 1000000 1200000 Mobilink Telenor Ufone Zong Warid Million Total
  • 38. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal PositioningCallRates Discounts Different Promotion oUth Pack oDjuice oGlow oUth Circle
  • 39. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Differentiation Ufone I n these days of intense competition marketers find it hard to differentiate their services from those of competitors. Now customer care about only price. An unsatisfied customer will immediately go for brand switching. Thus leaving a customer unsatisfied and not meeting his/her demands is out of question for marketers. Differentiation Strategy: Ufone has always strategized in satisfying the demands of its customers. In doing so it has been successful in differentiating itself in terms of:-  Price  Quality service  Technology Telenor A Teradata customer since 2005, Telenor Pakistan has been in the forefront of using Data Warehouse and Analytics within Pakistan. Fifth to enter the market they are now the second-largest mobile operator in Pakistan. Telenor Pakistan is also recognized as a leader within Telenor Group with regards to usage and maturity of Analytics. “The current project has been fuelled by a combination of consulting engagements initiated by Teradata and drive from Telenor Pakistan to use Data Warehouse and Analytics as strategic competitive differentiator” said MD Teradata Pakistan, Afghanistan and Bangladesh Mr Khuram Rahat. The current engagement envisions evolving Telenor’s BI environment to cater for an increasingly complex operating environment whereby BI is capable of providing an enterprise wide 360’ view with agility. Additionally, Telenor is revamping its BI environment to facilitate their
  • 40. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal self-service drive, a first for Teradata through our Semantic Modeling Building Blocks (SMBB) service. The Advanced Analytics roadmap jointly developed with Teradata will help the company better understand the market and unleash new opportunities for competitive advantage and growth. In particular, it will help the company maximize its return on investment by providing unique views of subscribers and revenues.
  • 41. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Overview Telenor Strategies Advertising Campaign As said earlier the advertising methodology for each of the Telenor brands in Pakistan would differ. It is, however, clear that the basic advertising objective of the company is to not only attract new customers but also retain the old ones by informing them with the latest packages company launches from time to time. There is a lot of competition in the telecom industry in Pakistan, there are giant players in the market and a minor mistake can result in a huge loss. The availability to the customers of the services like Mobile Number Portability (MNP) which allows them to change their connection provider while keeping the same number has put a serious challenge before the telecommunication firms to be consistent in maintaining their quality. Whatever the steps are taken by the companies like Telenor they have to rely on the advertising to stay relevant and continue to project a good image of their brands. Advertising Campaign Objectives Here are the advertising campaign objectives for each of the Telenor brands is described: Advertising objectives for Telenor Talkshawk Talkshawk prepaid connection has been offering four sub packages which are offering a tariff that would make the call rates less costly. In addition there are packages that are related to messaging. The objective of Talkshawk adverts is to stay relevant, retain customers, stay close to the customers, compete with other companies, increase subscribers by offering them best packages and obviously increase the company revenues. Advertising objectives for Telenor Persona
  • 42. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal There are less ads being run for Telenor Persona in comparison to the Talkshawk brand. The reason for this is that the main objective is to keep a favorable brand image in the eyes of the corporate clients and there is not too much bombardment of ads. Also the ads are meant to enhance the postpaid users by offering them innovative services like internet, emailing, etc. It also wants to retain the customers since the Jazz Indigo is a quite popular postpaid package among the corporate mobile users. Many of its ads emphasize the importance of business at the smaller levels like in an ad where the local business owners see opportunities being created through better connectivity. The ad is available on the internet. It must also be noted its more business based ads were running previously but not with much frequency now. Advertising Objective for Djuice Brand Djuice is the only telecom brand in Pakistan that has devoted all of its energy on youth. That’s a mark of distinction for it. It targets youth, and gives them the slogan, ‘its fun to be young.’ As a very large portion of the Pakistani population comprise of youth this brand aims to slowly and steadily become the choice of youth. It has made various ads to target them. Yet one common thing in the Djuice ads is this currently it is more leaned toward elite youth perhaps because it believes that targeting elite would automatically become a choice of youth from all lower stratum of society. Advertising Budget--Methods Used to Determine Advertising Budget The advertising strategy for the Telenor differs for each brand. it is carefully analyzed which media to be used and which method should be used to determine the advertising budget. Also it is planned how much of the percentage of revenue to be spent on the advertising. Normally the companies use Objective and Task Method for determining advertising budget. The two popular approaches to decide
  • 43. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal budgets are Top-Down and the Bottom-Up approach. In the first the management decides how much to spend while in the later the activity based and objective oriented approach is pursued by the managers. After analyzing the advertising campaigns and budgets it comes to the knowledge that the Telenor is using the objective oriented approach where the budget for each brand is decided by the managers depending on the need to advertise while taking into consideration the market realities. Currently it is estimated that Telenor was spending over 400 million Pakistani Rupees annually on advertising. Only in the print media it had allocated approximately 2.2 % of its revenue for the newspapers advertising. However, the companies normally spend 10-14 per cent of their revenues on overall advertising. Thus the figures for overall advertising for Telenor remain to be high since it uses all the popular media to place its ads. Advertising Appeal for Talkshawk Ads The advertising appeal for much of the Talkshawk ads is Informational as well as Emotional. Some of the ads that were placed at the start of the company operations were necessarily aimed at increasing the awareness about the corporate brand and the services being offered to the customers. Then afterwards, after the launching of different brands in the Pakistani market arena the appeals for the advertisements continues to change. Talkshawk, for instance, has used many brand ambassadors to make its informational appeals more attractive and penetrating. Ali Zafar, Amna Haq, Annie are the popular celebrities that are being used as brand ambassadors by the Talkshawk. The advertising appeals largely emphasized the package services, tariffs, special offers yet in a fancy manner. For instance in a recent ad featuring the popular singer Annie who is accompanied by two of her friends discussing about the Talkshawk package while visiting a shop and asking for the Talkshawk features, call rates, local and international, etc. This ad video is available
  • 44. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal at the BrandSynario web site. In this ad the information is the major appeal. However, one could say from the psychological point of view one could say this ad is also producing an emotional affect by featuring young performers, being happy, purchasing connection, and then Annie getting hooked toward the guy. This emotional appeal rises the hidden feelings of the customers to be more related to this brand. Similarly the other ads of Talkshawk are projecting the same informational and emotional appeals. But this is not much appreciated because it’s a mere following in the footsteps of the competitors. There is also very lack of positivism in emotional appeals of Talkshawk. Rather sometimes Talkshawk as evoke negative emotions out of oneself since they are not creative and not raising the personality of the brand. The Djuice related ads are too much informational as well as emotional. The information is depicted to let the youth customers aware of the tariff and the special services offered by the Djuice. In most of the ads, youth are being the performers. Most of the Djuice ads are energetic, thrilling and youthful. Yet some of the Djuice ads are brand building ad. For instance in a very thrilling ad there are young guys partying and one guy with a girl find hooked in a lift which displays the youth energy raising powerful emotions in the customers. Also in another ad, which was recently running in the television channels an informational appeal is used. This ad, called Djuice Jaagtey Raho, it is simply told the late night call rates. There are also quite unique themes picked up by the Djuice yet these themes too are thrilling and energetic. For instance in an ad a young girl is cooking and meddling with things at kitchen late night while her eyes have been tied up by a clothing piece. The little ad in the end says, ‘save your eyes for djuice.’ The ads for the Djuice as already pointed out are more directed towards the elite audience. Its slogans are even in English like it says, Djuice, one place…its fun to be young. These English slogans, taking urban elite youth themes in the ads suggest that the brand is currently trying to make its image superior while delivering the services as well.
  • 45. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Media Strategy (Electronic Media Only) Media strategy deals with at which channels to place ads on and during which programs so that they will be exposed to maximum target audience. The ads which are good in quality and have the ability to effect the customers can be very beneficial if there reach is enhanced. Telenor in Pakistan seems to be following a very sensible media strategy. It knows at which times it has to place its ads. However, it must be kept in mind that ads of each are not randomly placed. This timing too is determined carefully. Talkshawk, for example, places its ads in popular TV Channels during the highly rated programs. The major channels in which Talkshawk ads appear are Geo, PTV, AAJ TV, Geo Entertainment, ARY Digital, Geo Super, etc. If we analyze these channels are ranging from news, entertainment and sports channels. Geo is a very popular news channel. Most bigger companies want to place their ads just before the 9 o’clock news at the channel because at this time there are heavy viewers switching Geo to watch news. That time was occupied by the Telenor for a certain period of time. The same is the case with the TV programs. The higher the user rating of a news or entertainment program the more likely would the companies sponsor these programs and put their ads to be placed during the commercial break. For instance, the Capital Talk which is a famous political talk show run on Geo attracts a lot of advertisers. Similarly the dramas being run on ARY Digital often attract the advertisers. During the cricket season most companies put ads on Geo Super and other sports channels like Ten Sports. Telenor Talkshawk is also following the same strategy. Djuice, however, also targets the music channels, or during the programs which are popular among youth and the exposure of youth being more visible at certain times is also a way to place ads for Djuice adverts. Currently Djuice ads are run on all popular channels including the News channels to keep it relevant. It must be obviously clear that a brand like Persona can not place its ads on
  • 46. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal a cooking channel or a baby channel. Therefore the media strategy for Persona would be to place ads on channels that are more watched by the business oriented people. Currently it is seen that the Persona ads were run on the famous channels like Geo. Ufone : SALES PROMOTION & ADVERTISING “SALES PROMOTION” “Sales promotions are short term incentives to encourage the purchase or sale of a product or service” Ufone utilizes sales promotion activities to boost its sales. It follows all four of the promotion budgeting methods viz affordable method, percentage of sales method, competitive parity method and objective & task method. Ufone uses following sales promotion tools Contests: Ufone carried out contest for cricket talent hunt in the year 200. Our renowned Pakistani cricketer Shoaib Akhtar was used as patron for this contest. However this contest didn’t do much good to Ufone’s image or sales. But Ufone holds future plans to carry out such activities in more effective and profitable ways. Games: Ufone is currently running its game show on ATV prime time. This game show rewards the winning participants. Ufone updates its customers every now and then to participate in this game show. The problem we see in this activity is that Ufone is not properly advertising it. Premiums: All the cellular services are now offering premiums for their customers. This premium is offered, when a customer don’t use his/her sim for more than 3-6months, in the form of extra credit balance delivered to their numbers for free. Free tickets: Ufone recently offered free trip to Dubai. It was Ufone’s first Eid offer. Every time you make any international call of 5 minutes
  • 47. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal or longer than 5 minutes, you enter the lucky draw to win a return ticket to Dubai. The more calls you make, more is your chance to win. Promotional Products: “Phone bhi Ufone bhi”. It was a promotional offer By Ufone where it offered a mobile phone, free air time, Ufone connection and Rs.100 airtime all for Rs.999.And now Ufone also offers Blackberry mobile sets with PostPay connection. SALES PROMOTION STRATEGY: Ufone strategize to take aid of sales promotion whenever it sees a minor drop in its usage by its customers. They mostly go for pull strategy in promotion i.e. they spend a lot on advertising and consumer promotion to induce final customers to avail their services. Ufone applies sales promotion schemes continually in order to keep its customers loyal and happy. ADVERTISING (& DEVELOPING AD COMPAIGNS) “Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor” ADVERTISING OBJECTIVES: Ufone use advertisements when…  It has to inform the customers about new or available services  It seeks to persuade people to purchase their service or switch to their connection from any other connection ADVERTISING BUDGET Ufone is a heavy spender on advertising in electronic media as well as other media. Recently Ufone invested a huge amount on mass advertising. It was definitely a risk to take such decision. They are developing and playing new advertisements on electronic media not even with a month’s gap or so. A single Ufone advertisement played 15-20 times per day on a
  • 48. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal TV channel costs millions varying with the time of day when it is played. Ufone spends 20% of its profit on advertising and sales promotion. ADVERTISING STRATEGIES Advertising strategy consists of two major elements: Advertising Message & Advertising Media. Ufone has the following strategies regarding the Message and Media of advertising:- ADVERTISING MESSAGE: Message Content --»The very first content of Ufone’s advertising message was humor, and then in its blooming stage it shifted its message content to youthful excitement. Recently Ufone has again adopted humorous theme for its message content. This time Ufone is winning the hearts of people through humor and it has increased RPI of Ufone. Ufone has already generated much revenue through it. Message Format --»The format of Ufone’s advertisements has always been very colorful and eye catching. The shocking Orange & Green colours used by Ufone have always attracted people. These colors look beautiful on wall printing of Ufone. Message Source --»The very first Ufone advertisements had Faisal Qureshi as itsmessage source. Afterwards Ufone hired non-celebrity young models for itsyouthful message theme. Ufone also hired three lollywood queens i.e. Meera, Jia Ali and Veena Malik with Mikaal in an advertisement of “Baat Ban Jaye”. Thisadvertisement created a big controversy regarding the erotic and sexually attracting acts by the three female models. Due to negative response by people Ufone had to vacate its billboards and eradicate its banners, posters etc overnight, as directed by CEO and CMO of Ufone. But now Ufone has again hired a comedian trio featuring Faisal Qureshi, Mikaal & Hammad. The strategy behind hiring this trio is that they are economical and are personal favorites of people. Ufone always hire
  • 49. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal endorsers in group · Mr.Waqas Anjum (Senior Marketing Executive- Multan) is of view that you must bring changes in marketing to attract customers. For this purpose Ufone is re-launching itself under the name of one single brand called “UFONE”. This brand would have Orange & Black as its corporate color instead of conventional Orange & Green color. ADVERTISING MEDIA: To increase the reach and frequency of advertisement Ufone is using repetitive strategy for its advertisements. And the humorous theme always makes the ads more appealing and engaging the minds of customers. Ufone advertise in the following media types:- Print Media --»Ufone tries and print ads in all leading newspapers including The Dawn, Jung, Nawa-i-Waqt, Khabrain and local Sindhi newspapers as well. Ufone place its ads in all leading magazines as well i.e. Sunday magazine, akhabr-e-jahan, Libas, Mag etc Broadcast Media --» It is the prior choice for Ufone. It includes the electronic media television and radio. Ufone is advertising in all Pakistani channels including GEO, Hum, ARY, Indus, TV one, HBO, Cartoon Network etc (except MTV Pakistan). Ufone also plays its ads on local channels like WASEB and Punjab TV. Display Media --»This type of media is the second choice of Ufone where it carries out its most of sales promotion and advertising. Ufone advertise using billboards, hoardings, signs (on Shop boards etc), posters, wall paintings etc. SME Multan has used a new and innovative vehicle in display media i.e. Ufone’s painted rickshaws. Online Media --» Internet is the online media. Ufone places flashing ads on famous portals like coolbuddy.com, pakfellows.com etc. But Ufone is not carrying out direct mail or direct e-mail advertising. Events --» Ufone has sponsored many events in the past and holds future plans concerning it. The famous event sponsored by Ufone in 2006 was a
  • 50. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal series of musical concerts did all over Pakistan, featuring Mikaal Hassan and Junoon, it named UROCK. SWOT Analysis Ufone Strength Strengths include internal capabilities, resources, and positive situational factors that may help the company to serve its customers and achieve its objectives. The strengths of Ufone are as follows:- Ufone’s differentiation is its biggest strength. Ufone offers lowest off- net call rates that differentiate it from its competitors  Ufone is offering more and better Value Added Services (VAS) than its competitors i.e. Ufone’s Walkie talkie,_  Ufone is enjoying the second largest cellular network in Pakistan  Ufone has the most promising and attractive ATL (Above The Line) activities  Ufone has great management within the organization (internally & externally) Weakness Weaknesses include internal limitations and negative situational factors that may interfere with the company’s performance. The weaknesses of Ufone are as follows:-  Ufone has less professionalism within the organizational members  As Ufone is a subsidiary of PTCL, which was formerly under government management, Ufone still has a shadow of a government organization
  • 51. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal  Ufone still has room for the betterment of its network coverage in comparison to The Market Giant “MOBILINK”  Ufone has pathetic billing system for postpaid connections. This faulty system creates a negative vibe among its customers Opportunities Opportunities are favorable factors or trends in the external environment that the company may be able to exploit to its advantage. Ufone has following opportunities in its way:-  Ufone’s biggest opportunity lying ahead in near future is the phase of conversion of their GSM technology Into 3G (satellite based) technology  Ufone has the opportunity of growing its customer base due to increasing trend of using mobile phones  Ufone has the opportunity to win the customers of its competitors by providing them superior services on lower price  Ufone has the opportunity that it is pioneer in southern Punjab where it can promote itself and become market leader on the basis of this very fact Threats Threats are unfavorable external factors or trends that may present challenges to performance. Ufone is facing/about to face the following threats:-  Ufone’s biggest opportunity is its biggest threat as well. The phase of its conversion of GSM technology to 3G technology can be a threat for it if not carried out properly  The boosting customer base of Warid and Zong is also a big threat for Ufone  The decreasing economy rate and instability of Pakistan is a big threat for all businesses in Pakistan including Ufone.
  • 52. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Telenor Strengths  Network quality & design  Superior customer care  Financial Strength  Excellent Coverage & Distribution.  Commercial Launch of LDI & mobile services  Contract with Siemens & Nokia  Brand image of Quality  PTA initiatives  E-commerce usage. Weaknesses  Relatively low market share  Low profit margins  Negative cash flows in the initial years Opportunities  Favorable Macroeconomic indicators  low cellular market penetration  Inefficiency & poor performance of other mobile networks  Co branding e.g. Ufone with ABN AMRO  Strategic Alliances & Infrastructure Sharing Facilities  International Mobile Equipment Identity System Threats  Rolling Customers  Privatizations & deregulations- increased competitions.  Grey Traffic  MNP mobile number portability  Wireless technology at boom
  • 53. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal  Public pay phones & calling cards usage where network is not available  Propagandas attacking brand image Porter Five Forces  Bargaining Power of Suppliers  Bargaining Power of Buyers  Threats of Substitutes  Threats of New Entrants  Revelry Competitors Bargaining power of customers: The bargaining power of customers in this case is very high because of the low switching cost in the industry. There are attractive substitutes available to the buyer even in the form of keeping the same cell phone number but changing the service provider. It makes very difficult for the market players to retain their customers. I think the brand loyalty can only be created through superior marketing campaigns and service. Bargaining power of suppliers: This is a type of industry where, at least in present times, the bargaining power of suppliers is at the low level because of the nature of inputs for the business. Moreover, with the deregulated and friendly environment given by the government of Pakistan, the industry has become more competitive and quality services driven. Threat of substitute products: Although the cell phone subscribers are more than 95 million now, still the threat of substitute products is high for the industry. Buyer inclination to substitute and price-performance tradeoff are the most important to consider in determining the threat of substitutes. Actually, just the subscription of cell phone service is not enough for a company to get optimal profits but the real challenges is that how many existing customers are using the service regularly for incoming as well as outgoing calls. The quality of service is the parameter for a customer to be loyal with the subscription otherwise fixed line and wireless fixed lines are the better substitutes, as been experienced in festive times. Threat of new entrants: It is not easy to enter in this capital intensive sector of the telecommunication industry. So, the threat of new entrants is low. Though the growth and potential of the sector look very attractive, still it is very difficult to
  • 54. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal take risk for a new investor because the penetration in the market would be very difficult. Competitive rivalry: When the competition is fierce, obviously the competitive rivalry will be at the highest level. The very high level of competitive rivalry among the major players of the cell phone sector is clearly observable. Just look at the advertisement campaigns of the rivals and you can see how intense the competition is. It looks like a battle for supremacy going on between the rivals. All means of attracting new and potential switching customers are being used by all the competitors to gain as much market share as they can. Exit barriers, industry growth, product differences, brand identity, and diversity of rivals are the main reasons of very high competitive rivalry in this case. PEST Analysis Ufone Political Political environment of Pakistan is stable in the current situation and country is not progressing in terms of economic growth that was expected. Environment is investor non-friendly & telecommunication sector is under regulation. Before WTO implementation government already took steps in regulation of telecommunication sector. Economic Factors: Marketers should consider long term and short term state of a trading market Inflation is being controlled by state bank and under strict eyes but unemployment rate is going up & up with the increase of level of poverty. Economic instability is worsening day by day as liquidity crunch is prevailing in the world Socio-Cultural As Pakistan is an Islamic country and people are very strict in case of Islam anything against the philosophy of Islam on either print or electronic media are treated as against Pakistan. Most of the people
  • 55. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal dislike anything extra-ordinary or something which sabotage their culture or subculture. Companies who are targeting upper-end of market mostly published and aired 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 works Technological Factors Companies have technology with which they can compete in the Pakistan and now companies are investing in their infrastructure to not only expand but also to upgrade their existing structure. Currently all companies except Zong & Instaphone are providing Multi-media Messaging Services (MMS), General Packet Radio Service (GPRS), Virtual Private Network (VPN), Pocket Stocks, Conference Calling, Wallpapers Animated pictures Polyphonic ring tones (WAP), and Voice Mail at low price and Ufone is proving an addition feature that one can see TV channels on their cell. Ufone shifted its whole network from 900 MHz to 1800 MHz offer Value-Added Services like General Packet Radio Service (GPRS), Multi-media Messaging Services (MMS) and Virtual Private Network (VPN) etc Telenor Political Analysis Political factors are those which are directly controlled by the political parties and Government they could be able to influence directly in any situation or in any industry. So they create a major impact on any industry. In Pakistan Political environment was not stable that is the major threat for telecommunication industry because no one knows at what time Government will change and with the change of government policies will also change. In Pakistan Risk of martial Law is always threat for all the industries and in the dictatorship they could not be able to explore themselves and do not grow as they could be. Terrorism is the
  • 56. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Major problem that is facing Pakistan in now a day that is the most crucial factor that is hurdle in the growing in the telecommunication sector because no one knows about the terrorist activities. In Pakistan government dictates the pricing regulations so that influence the smooth working of the telecommunication industry. In Pakistan Government is changing the policies very rapidly so that creates instability. Now the government of Pakistan is trying to give the maximum Protection to this sector and passing number of Laws to make it more safe and stable. Government of Pakistan had developed Pakistan telecommunication Authority (PTA) so that helps in the establishing Business in Pakistan in more efficient manner. Government is trying to provide investor friendly environment to give the more benefit to the investors and give them maximum safety. Economic Analysis Economic factors are directly controlled and influenced by the financial institutions like State Bank of Pakistan (SBP). So they help the industry in giving economic soundness and provide financial aids to survive in the time of crises. In Pakistan Although an proper Institution for telecommunication sector working (PTA) but Government is influencing the working of that department and imposing the policies made by politicians. Overall economic conditions are not very good for any industry because rate of inflation is increasing day by day and value of currency is going down which causing increase in the value of loan payable that is another major threat for telecommunication industry. In Pakistan all the financial institutions are controlled by government rather than the head of financial Institution State Bank of Pakistan (SBP). Rate of interest is increasing day by day it is approximately 14.00% which is higher than any country in the world so it makes impossible for the telecommunication industry to take loan facility. Risk rate of economy of Pakistan goes to 3 out of 5 that is the alarming situation for the Pakistan as well as all the industries of Pakistan. Currently government
  • 57. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal has increased the taxes on the telecommunication sector so that reduces the income of the telecommunication sector some of the examples of that are given below etc... · Pre-paid customers were charged 10 per cent withholding tax on every new load, which was deducted in advance · With 15 per cent sales tax on every call increased the sales tax from 15 per cent to 21 percent for mobile users. During 2010 telecommunication sector attracted US $ 142.7 million FDI which was 26.4% of the total FDI in the country during this period. So government is trying to give maximum benefit to the telecommunication industry. During the quarter ending December 2009, telecom sector Labor Cost of Pakistan is very Low as Compared to other Countries so that is also an opportunity for the Telecommunication sector. Telecommunication industry is the fastest growing industry in the Pakistan that shows that investment is quite comfortable in telecommunication sector. Social Analysis Social analysis is directly attached with the people and with the culture in which they are working if they try to dictate the social factors that create the threats to that industry and if they work within the social norms then social factors become the key to success. Pakistani people are more social so they have family system and they want to remain in contact with other through any means so that is the opportunity for telecommunication sector to capture the feelings of the people. Pakistani people celebrate a lot of festivals on that occasion they try to make contact to their all family members and other at any cost these occasions are Jashn-e-Baharan, Eid Celebrations and other cultural festivals. They create the lot of opportunities for telecommunication industry so they make calls to their relatives particularly on that festivals. The total population of Pakistan is approximately 169,248,500. The population is
  • 58. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal increasing rapidly which increase the number of cellular usage and help in projecting high profits. Some campaigns to educate people and develop the positive behavior in that social culture. Telenor is taking initiative in this regard. AJ NAE BOLO GY TO KAL BUGHTOO GY {KhamoshiKa Boycott} (Djuice) KRO MUMKIN (Telenor) Low Educated people could not be able to understand the language of telecommunication (Djuice etc.).That create misunderstanding and create threat about the particular package. Corruption is the major threat for any industry in the Pakistan that is because people are unaware and uneducated but now these telecommunication companies are working on that like. Although these companies are bringing positive change in the society but also destroying the social culture and providing the negative attitude to the young generation of the country by providing late night services that is affecting the education of the young generation. Technological Analysis Telecommunication technology is changing the behavior of the people and providing them opportunities to get the bright future. Due to latest technology the cost of telecommunication industry is decreasing and they are giving lowest rates to the peoples to remain in contact with relatives and with their families. Introduction of CDMA (Code Division Multiple Access) Technology in the mobile Sims is also creating the Opportunities for the telecommunication industry. This technology gives less radiation then GSM technology. The latest technology of 3G mobile communications has been earmarked and PTA will soon be inviting applications for 3G spectrum auction. This technology will increase operating capacity. The current focus of the telecommunication industry is on increasing the coverage rather then up gradation of the systems
  • 59. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal they should upgrade the systems to meet the requirement of the modern world.
  • 60. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Evaluation Years Mobilink Ufone Zong Telenor Warid Total 2007 26,466,451 14,014,044 1,024,563 10,701,332 10,620,386 63,159,857 2008 32,032,363 18,100,440 3,950,758 18,125,189 15,489,858 88,018,812 2009 29,136,839 20,004,707 6,386,571 20,893,129 17,886,736 94,342,030 2010 32,202,548 19,549,100 6,704,288 23,798,221 16,931,687 99,185,844 2011 33,378,161 20,533,787 10,927,693 26,667,079 17,387,798 108,894,518 2012 35,953,434 23,897,261 16,836,983 29,963,722 13,499,835 120,151,235 2013 37,121,871 24,547,986 21,044,319 33,513,133 12,706,353 128,933,662 Telenor Pakistan is growing year by year. 2007 was the best year in terms of increase in network subscribers when it got almost 80% growths as compare to the previous year 2006. Telenor Pakistan showing positive growth every year as compared to other communication networks working in Pakistan. This year Telenor Pakistan showed 3.7% growth and achieved 30 Million network subscribers to be the 2nd largest communication network of Pakistan.
  • 61. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Conclusion By keenly analyzing the marketing of Ufone, we group member agree that Ufone is not a safe player in the market. It is penetrating its market by taking risks and aggressively promoting & advertising itself. It holds second largest market share and is seeking to become the market leader anyway possible. We came through very unconventional strategies and ad campaigns while working on this report. We believe that mobile services are the toughest market to enter and survive. And in this tough market Ufone isn’t only surviving but growing at an exceptional rate. Ufone is using humorous theme in its ads which has become its benchmark. People enjoy watching, discussing and following Ufone ads the most. And it is the biggest achievement of Ufone in recent times. There is no doubt that Telenor in Pakistan has a great potential. It is the second largest market occupier in terms of the subscribers while its revenues are also approximately the second in the industry. Its closest rival currently is Ufone which is making highly precious adverts by utilizing the theme of humor in them. Ufone has also been introducing innovative schemes while with the superb advertising campaign a little changed from the trendy Telenor glamorous, hoopla oriented and too much irritating sometimes. Certain Telenor ads have nothing to offer but a painful music, voices and dances and that too often the same thing is repeated when people get fed up by watching these irksome ads. Yet there are also few good advertisements by the Telenor. But this inconsistency in advertisements quality can put it in a great loss since new technology has arrived which allows the customers to change their connections while sitting at home and facing no havoc of documentation or other official visit. It is recommended Telenor to change its strategy for Talkshawk ads and make them more innovative, appealing and more experimentation with the execution. Similarly the Djuice needs to change the taste and find ways to target greater youth rather than just
  • 62. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal targeting the elite. Persona ads being fine, most of them, but the package need up gradation in service.
  • 63. Global Marketing Strategy – Final Project 2014 Brand Competition Submitted By: Ali Zulfiqar, Noman Shiekh, Asadullah Bashir, Safwan Saleemi, Javed Iqbal Bibliography  http://businessobserver.pk/telenor-pakistan-extends-business- analytics-for-strategic-business-competitive-differentiation/  http://tribune.com.pk/story/215295/telenors-subscribers-grow-but- revenue-lags/  http://tribune.com.pk/story/376707/mobile-subscribers-in-pakistan- cross-118-million-mark/  http://www.pakistantoday.com.pk/2014/02/10/business/cellular- subscribers-reach-132-33m-with-73-5pc-record-penetration/  http://www.uthpack.com/tariff  http://djuice.com.pk/packages/call-packages/call-offers/free-call- with-team-offer  http://en.wikipedia.org/wiki/Uth_Records  http://en.wikipedia.org/wiki/Ufone  http://www.telenor.com.pk/  https://ufone.com/  http://propakistani.pk/2013/05/17/ufone-launches-uth-pack-a- youth-brand/  http://propakistani.pk/2012/03/14/cellular-subscribers-reach-114- 61-million-in-january-2012/  http://en.wikipedia.org/wiki/Mobilink  http://en.wikipedia.org/wiki/Telenor_Pakistan  http://www.Scribd.com  http://www.slideshare.com 