Marketing strategies of Telenor Pakistan

MARKETING STRATEGIES OF TELENOR PAKISTAN

PREPARED BY :

SALMAN PERVEZ BM-35002 FAWWAD SIDDIQUE BM-25157 FARAZ REHMAN BM-25151

SUBMITED TO :

JAHANZAIB TAIMUR

STATEMENT: Marketing report submitted to the partial fulfillment of Marketing policies.

NOVEMBER 2011

Faculty of Management & social sciences

Institute of Business & Technology

Marketing strategies of Telenor Pakistan

MARKETING STRATEGIES OF TELENOR PAKISTAN

PREPARED BY :

SALMAN PERVEZ BM-35002 FAWWAD SIDDIQUE BM-25157 FARAZ REHMAN BM-25151

SUBMITED TO :

JAHANZAIB TAIMUR

STATEMENT: Marketing report submitted to the partial fulfillment of Marketing policies.

NOVEMBER 2011

Faculty of Management & social sciences

Institute of Business & Technology

Marketing strategies of Telenor Pakistan

Institute of Business & Technology

Marketing strategies of Telenor Pakistan

ACKNOWLEDGMENT

We would like to thank few people, because without their help and concern our project, shouldnt have been completed. First of all, we would like to thank the Almighty Allah for helping us a lot although the project and for making as capable to complete this project. Secondly, our Teachers, and the Personnel from Telenor, our focused organization, who have supported us and guided us throughout the project and to tell us where we are lacking and what steps, could be taken to overcome them, so that well get the better results in our project. And, last but not the least, our Parents who have supported us and have prayed a lot for us that we are here with the final projects in our hands, after the hard work of last one month.

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Marketing strategies of Telenor Pakistan

ABSTRACT

Telecom Industry is experiencing a fast pace in context of new launchings and introduction of exciting technologies. In this project, we analyzed all components strategically and critically keeping the competitors in the mind and other business environments and also forecast the futuristic approach of Telenor Pakistan. As Telenors strategy is to be a market oriented firm to survive in the market, so they need the regulate and change the policies accordingly. Then, the certain segments through which Telenor is setting its target audience is briefly discussed in terms of demographically, psycho graphically and geographically. Through its effective Research and development in certain areas, its market growth is increasing dramatically as it is effectively targeting customers of all areas. They are also using such packages with efficient pricing and through user friendly glamorous advertisements that attract the customers to increase its over all sales and services. This is all done through effective distribution channels and value chain that creates a sense of easy availability to the customers.

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Marketing strategies of Telenor Pakistan

TABLE OF CONTENT

History of Telenor Telenor in Pakistan Vision Value Mission statement Objectives CEOs & Directors Products & Services Market Segmentation SWOT analysis Marketing Mix Competition Conclusion.

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EXECUTIVE SUMMARY

All of us are well known and are well aware of the present situation of the mobile industry in our beloved homeland, Pakistan. Mobile industry, here in Pakistan is growing at much faster pace when compared with few years back in the scenario. It has developed a lot and more and more companies are starting their operations in Pakistan.

In this very era, one of the rising mobile companies, that became highlighted these days and are now heard about almost everywhere in a very short period is Telenor. Telenor entered the Pakistans market few months back and is now going very good nowadays. It was very interesting for us to engage in such a project and choosing an organization that is very new to the market and, of course, to us as well. Furthermore, a mobile company all the way from Norway has entered into our market, and making the thorough study and analysis of its environment, knowing about the history of Telenor, its operation in its home and host countries, getting to know about its employees and the work that they do in the organization, was all very amusing, but our main emphasis in this project is to studies the IT department and its related components infect Telenor is the most IT based cellular company who believe on the modern technology rather than paper work thats why they are using several softwares and latest computer system for getting maximum output.

It is fully equipped with the latest IT techniques and its employees as so. The reason why Telenor is becoming so much popular is the continuous effort made by people working at Telenor, their creative and highly innovative ideas has helped them a lot in capturing the Pakistans mobile market at a very shorter period of time. Behind this continuous effort of employees, there are certain factors that boost up their morale and motivation level, that forces them to work so hard and that factor is efforts made by Telenor for the career and skills development of its employees.
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Marketing strategies of Telenor Pakistan

HISTORY OF TELENOR

Telenor is the leading telecommunication company in Norway, which is one of the most advanced telecommunication markets in the world. Norway has one of the worlds highest penetration rates for mobile, fixed line digital telephony, personal computer and internet usages. The history of Telenor goes back a long way in 1885, when telegraphic service was established under the name of Telegrafverket- a government institution. The Norw1egian Telegrafverket has had several names throughout the time of existence. From 1989, Televerket was also allowed to compete in the market for value added services. In 1994, the Parliament again decided to convert Televerket into a state-owned public limited company. This took place in November in the same year. In early 1995, Televerket AS changed its name to Telenor AS, with a new and business oriented organization structure. Worldwide Coverage The Telenor Group is committed to engage in the local communities where we operate. Take a look at our latest initiatives in our operations worldwide. Bangladesh Denmark Hungary Malaysia Montenegro Norway Pakistan Russia Serbia Sweden Thailand Ukraine
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Marketing strategies of Telenor Pakistan

TELENOR IN PAKISTAN

Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia together with Thailand, Malaysia and Bangladesh. Telenor Pakistan launched its operations in March 2005 as the single largest direct European investment in Pakistan, setting precedence for further foreign investments in the telecom sector. The company has crossed many milestones and grown in a number of directions, making Telenor Pakistan a leading telecom operator of the country. They are the fastest growing mobile network in the country, with coverage reaching deep into many of the remotest areas of Pakistan. In the most difficult terrains of the country, from the hilly northern areas to the sprawling deserts in the south, at times we are the only operator connecting the previously unconnected. They are spread across Pakistan, creating 2,500 direct and 25,000-plus indirect employment opportunities. They have a network of 23 companyowned sales and service centers, more than 200 franchisees and some 100,000 retail outlets. Telenor ASA is an international provider of high quality telecommunications, data and media communication services. It ranks as worlds 7th largest mobile operator with a total of 164 million subscribers in its mobile operations. Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia together with Thailand, Malaysia and Bangladesh.

Did you know that...?

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the Telenor Group is currently ranked as the worlds seventh largest mobile operator (in terms of subscriptions) the revenues were NOK 111 billion in 2008 the Telenor Group has 164 million mobile subscriptions worldwide (2008) we have telecom operations in 13 countries In one day at Telenor... 38,800 employees go to work in 13 countries an average of 75,000 new customers join us

Telenors Portfolio Following are the main business of Telenor. The Internet TV and Broadcast Mobile Phone Services

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OUR VISION

Our Vision is Simple: Were here to Help We Exist to help our customers get the full benefit of communication services in there daily lives. The key to achieving this vision is a mindset where every one of us works together: Making it easy to buy and use our services. Delivering on our promises. Being respectful of differences. Inspiring people to find new ways.

VALUES We believe in our values which are as following: Make it Easy We're practical. We don't complicate things. Everything we produce should be easy to understand and use. Because we never forget we're trying to make customers' lives easier. Keep Promises Everything we set out to do should work, or if it doesn't, we're here to help. We're about delivery, not over promising, actions not words.

Be Inspiring We are creative. We strive to bring energy to the things we do. Everything we produce should look good, modern and fresh. We are passionate about our business and customers.
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Marketing strategies of Telenor Pakistan

Be Respectful We acknowledge and respect local cultures. We do not impose one formula worldwide. We want to be a part of local communities wherever we operate. We believe loyalty has to be earned.

MISSION STATEMENT

Telenor is a customer focused business mobile service operator/telecommunications Company that seeks competitive advantage in quality and valued added service in both prepaid and postpaid categories through state of the art technology. Telenor relies on building trusting relationships with customers, owners, employees and society in general.

OBJECTIVES
Following are the major objectives of Telenor: Objectives 2006-07 2015 $6- $8 40% 30% 30% 10% 90%

ARPU(Average Revenue Per $4 User) Market Share in terms of 10% Subscribers Market Penetration 9% Market Share in terms of 7% Revenue EBITA(Earning before Interest, 5% 6% Tax and amortization) Unprompted Brand Awareness 20%
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CEO and Group Executive Management

The Chief Executive Officer (CEO) is in charge of the day-to-day management of the Telenor Group. The Group Executive Management consists of heads of key business areas and functions at Telenor. Jon Fredrik Baksaas President and CEO Appointed: 21 June 2002 Sigve Brekke Executive Vice President and Head of the Telenor Asia operations Appointed: 1 September 2008 Morten Karlsen Srby Executive Vice President and head of the Nordic mobile and fixed network operations of Telenor Appointed: January 2003 Jan Edvard Thygesen Executive Vice President and Head of the Central/Eastern European Appointed: 1999 Trond O. Westlie Executive Vice President and Chief Financial Officer (CFO) Appointed: 2006 Bjorn Magnus Kopperud Executive Vice President and Head of Group Human Resources Appointed: January 2006. Since 2003 he has served as Head of Group Human Resources
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Marketing strategies of Telenor Pakistan

Ragnar H. Korsth Executive Vice President and Head of Global Coordination Appointed: January 2006 Hilde M. Tonne Executive Vice President and Head of Communications & Corporate Responsibility Appointed: 1 September 2007

Board of Directors The Board is responsible for the management of the Telenor Group and the proper organization of its operations. Harald Norvik Chairman Appointed: 31 May 2007

Bjrg Ven Vice-Chairman Appointed: 1 October 2001 Burckhard Bergmann Board member Appointed: 29 May 2008 John Giverholt Board member Appointed: 8 May 2003 Olav Volldal Board member Appointed: 31 May 2007
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Harald Stavn Board member, employee representative Appointed: 20 June 2000

PRODUCT AND SERVICES

The Telenor Group provides a wide range of innovative services that are available throughout the world. Here is a selection. Mobile Fun Following are the mobile fun service of Telenor. Mobile Sports And he scores!!! You just got a text message alerting you about a sportive highlight. Luckily you dont have to wait until you get home to watch that winning moment you can watch it directly on your mobile. Available in: Norway, Sweden, Pakistan, Thailand, Bangladesh, and Malaysia Mobile Music Right now there are 1 million songs ready to download to your mobile. You can share these digital rights management-free songs with your friends and family or transfer them to your mobile phone, mp3 player and PC. Share that funky music! Available in: Norway, Sweden, Serbia Pakistan, and Malaysia Mobile TV

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Keep your favorite TV shows available in your pocket and watch them anytime, anywhere. You can easily access live TV channels on the move so you dont have to miss out on any of the action. Keep yourself updated on news, sports, entertainment and more, directly on your own mobile phone. Available in: Norway, Sweden, Pakistan, and Malaysia Mobile Communities Get out and about, and stay connected and in touch with your friends. With Telenor you can access communities such as Windows Live MSN and Facebook on your mobile and keep your friends close anytime, anywhere. Available in: Norway, Sweden Mobile Interaction Following are mobile interaction services providing by Telenor. Community Information Centers 500 Community Information Centers (CICs) offer high speed Internet access to rural areas in Bangladesh, where the nearest Internet facilities would otherwise be at least 20-30 miles away. The service was set up by Telenor's Bangladeshi mobile operator Grameenphone. Available in: Bangladesh Health Line Health Line provides 24/7 access to medical services for mobile users in remote areas, several miles from the nearest doctor. All Grameenphone subscribers in Bangladesh can get medical assistance directly over the phone. Available in: Bangladesh
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ApnaPCO - Share a Mobile Can you imagine life without a phone at all? That is the case for many people living in some of the most rural communities in Pakistan. ApnaPCO is a business-in-a-box solution, which allows people in remote areas to share a mobile phone where there are no other alternatives making life a little easier. Can you imagine life without a phone at all? That is the case for many people living in some of the most rural communities in Pakistan. ApnaPCO is a business-in-a-box solution, which allows people in remote areas to share a mobile phone where there are no other alternatives making life a little easier. Available in: Pakistan TeleDoctors Are you a Telenor Pakistan subscriber and in need of expert medical advice? Simply dial 1911 to get in touch with experienced doctors who can help you with your problems wherever you are in the country. Available in: Pakistan Mobile in Flight By using AeroMobile secure mobile communication technology you can now call your colleagues, customers, friends and family whilst in flight from your own mobile phone. Available in: Worldwide Mobile at Sea Most people have experienced little or no connectivity at sea. Maritime Communications Partner enables mobile phone coverage by installing and operating the ship borne

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radio networks, linking the vessels with public networks via satellite. Available in: Worldwide Mobile Marketing Register your phone number with your favorite shops and services, and receive smss with up to the minute information on the latest events and offers. Dont get first in line, avoid the queue altogether! Available in: Norway, Sweden Child Internet Protection The Security Shield technology offered by Telenor protects children from accessing sites that have not previously been approved or from coming into contact with unsuitable people on the Internet. Children have their own login with a protected desktop controlled by parents. Available in: Norway, Sweden Mobile commerce Mobile commerce services of Telenor are as follow: Telenor easy paisa In areas with limited access to regular banking services and the Internet, people can use their mobile phones to transfer money anywhere, anytime. The easy accessibility of the service will bring new opportunities to DiGi subscribers with insufficient access to regular banking services. Available in: Malaysia, Pakistan

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BillPay - Pay by Phone BillPay is an innovative service, the first of its kind in Bangladesh. It provides an electronic bill payment service for utilities services and for other companies. Customers can pay their utility bills and other bills through this service regardless of whether they own a mobile connection or not. Available in: Bangladesh Research - the Future is Now The Telenor Research & Innovation unit is an innovation hub for the Telenor Group. With three locations in Norway and a satellite in Kuala Lumpur, Malaysia, Telenor R&I employ 236 people from 23 countries.

Our main research areas are:

Wireless Broadband

FutureSIM

Connected Objects

Content and Services

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Market Segmentation and Positioning 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.

Market Segmentation & Product Positioning

Market Segment Youth/ Students Women Financially Constraint Corporate/ SME

Today Feature Year Existing Estimate Product 25% 27% Djuice, TalkShawk 10% 40% 25% 20% 23% 30% TalkShawk TalkShawk, Telenor Azadi Postpaid Packages

Profitability 29% 21% 20% 30%

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SWOT Analysis An overall evaluation of Telenors Strengths (S) Weakness (W) Opportunities (O) and Threats (T) are as follow: 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
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Marketing strategies of Telenor Pakistan

Public pay phones & calling cards usage where network is not available Propagandas attacking brand image

Telenor Group Strategy The Telenor Group has defined six strategic ambitions which it aims to achieve by 2011. These are: To deliver increased profitable growth To strengthen our performance culture across the Group To make responsible business a competitive advantage To provide a superior customer experience To ensure best practice benchmarking across the Group To drive change and constant renewal

S t r a t e g i c P l a n n i n g P r o c e s s (Marketing Mix) According to Bearden (2001), Strategic planning requires a nice combination of strategies with products and other corporate resources. It requires the involvement of fair execution of strategically plan from different functions like marketing, production, finance, distribution and others. For strategy formulation, there is a variety of decisions which should be there before its implementation. Where right entry mode strategy is necessary, there is also a need of appropriate product-market combination. Then other marketing mix elements should be given importance because these elements can be the backbone for the business success Telenors product Strategy To get the real fruits of more open market at regional level requires the satisfaction of the demands of the target market and this satisfaction can
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only be achieved if the product or service offered in the market is suitable and acceptable for its purpose and this can be obtained by adopting a regional product strategy suitable for company and the market as well. Telenors study indicates that it is acting quite on this concept that, in order to be more competitive in the world market, firms should shift their emphasis from local customized products to globally standardized products that are advanced, functional, reliable and low priced. But here low priced strategy be to compromise and later on due to its quality, Telenors low price strategy takes shift from low to high but competitive. Telenors decision to standardize or adapt its products is based on cost/benefit analysis of what they believe the implications of adaptation and standardization are for profitability and market share. According to Doole (2000) in normal circumstances, the cost of adaptation would be expected to be greater than the cost of successful standardization. Telenor believes in long term advantages and not in satisfaction of immediate demand, thats why they continue the exposure to the standardized products and services which leads them to greater market share in the longer term. Our research shows that there are three factors which enforced the company towards more standardized strategy and these are illustrated in figure below. Homogeneity of markets Increase in number of regionalizing firms Identifiable international consumer segments Summarizing it, regionalization forced the company to rethink about its strategies towards product, to be more competitive in the open market.

Telenors Price Strategy

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
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is not much sensitive because of psychic distance factor. Cultural environment and a geographical neighborhood influence the pricing 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. Telenors 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 products 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. Thats 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.

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Marketing strategies of Telenor Pakistan

Telenors Place Strategy

To manage the foreign channels of distribution is a key area in a companys 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 doesnt 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.

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Marketing strategies of Telenor Pakistan

Telenors Promotional Strategy

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 Telenors 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 Telenors promotional part of marketing mix but in all the way it has positive edge for the company and its business throughout the region.

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Marketing strategies of Telenor Pakistan

Competition

As at 30 June 2008, Telenor Pakistan had a market share of approximately 20%. In addition to Telenor Pakistan, there are five other mobile operators in Pakistan: Mobilink, Ufone, Warid, Zong (formerly Paktel) and Instaphone. According to data provided by the Pakistan Telecommunication Authority (the PTA), as at 30 June 2008 Mobilink was the largest cellular mobile operator in Pakistan with a market share of approximately 37%, Ufone had a market share of approximately 20%, Warid had a market share of approximately 17%, Zong had a market share of approximately 4%, and Instaphone had a market share of approximately 0.4%. Major Competitor

Parameters Product Life Cycle Market share % Coverage

Mobilink Maturity 37%

Telenor Growth 20%

Product Portfolio

900 cities 1100 cities Jazz Octane, TalkShawk, Mobilink Telenor Indigo, Ladies Azadi, Djuice First,

Customer Base Marketing Operations

17.2 million Excellent

3.6 million Good

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Marketing strategies of Telenor Pakistan

CONCLUSION

Telenor is the leading telecommunication company, which are the most advanced telecommunication markets in the world. The Telenor Group is committed to engage in the local communities where it operates. In Pakistan telenor launched its operations in March 2005 as the single largest direct European investment in Pakistan. The company has crossed many milestones and grown in a number of directions, making Telenor Pakistan a leading telecom operator of the country. They are providing a service in almost 2500 cites of Pakistan and it is most growing telecom industry in this country. In short it start its business when there is a very high competition in market and take very little time to grow in the market and now it has almost 20% market share in Pakistan and standing at second place along with Ufone who also has 20%. They are now providing different services to its customers at a high quality which helps them to progress rapidly in country and in features their objectives shows that in next few years the will become the market leaders in Pakistan.
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Marketing strategies of Telenor Pakistan

REFERENCES

Principles of Marketing by

Philip Kotler,

www.researchandmarkets.com/reports www.telenor.com.pk

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