PRINCIPLE OF MARKETING

Submitted to: Maam Fazeelat Kamal

PROJECT ON TELENOR

BAHRIA UNIVERSITY ISLAMABAD

PRINCIPLE OF MARKETING

BAHRIA UNIVERSITY ISLAMABAD

PROJECT ON TELENOR

OUR GROUP
Group#5 Aleena Amir (Group Leader) Saba Sohail Jawad Hussain Armaghan Shaukat Shujat Afzal

TABLE OF CONTENT
Introduction Background Market place Company Strategy Market Targeting and Segmentation Product Position Analysis Environment Marketing Strategy Consumer Behavior SWOT Analysis

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INTRODUCTION
In order to understand the concepts of marketing thoroughly and deeply one has to choose a firm or a company in order to imply the basic concepts of marketing for better understanding. Thus for such undergoing such experience we have chosen, TELENOR as our company. Thus it is essential to get full knowledge of the respected company to determine its past development, performance and also it's changing strategies

BACKGROUND
Talking about telenor, it's one of the oldest companies in telecommunication sector and has stabilized over years. Though it was established in 1885as a Norwegian company. Since then it has undergone drastic change from being a strong, national operator company to privatization process in 2000. This was followed by there dramatic jump in the international telecom market. Since then it has developed its communication web in more than 12 markets around the world, many of which are seeing high growth and recently have approached India, one of the fast pace country in sense technology and telecommunication

. As far as Pakistan is considered ,her telenor was introduced in year 2005 as an international brand In these 4 years, the company has succeeded in becoming one of the top , most efficient and popular telecommunication server. This is due to there excellent value creation strategy through efficient networking, due commitment and brilliant customer service. At the end of May 2010 it had a reported subscriber base of 23.65 million, and a market share of 24% making it the country's second largest mobile operator

MARKET PLACE
Pakistan currently has a population of over 180 million. For such immense population, plus with such variety of geographical locations, it was difficult for the already local existing companies to maintain the monopoly longer. As they already knew that it was not in there control to provide the promised services to such huge population living in extreme locations. Also, the internal telecommunication system named as PTCL is not well developed to provide its services to the far places in

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Northern hill stations such as swat, Hunza where large number of population lives moreover there are deserts and other plateaus which are deficient in such networking. Thus forming the basic need of these people. Moreover,70% of Pakistan population lives in rural areas and places that do not support high means of communication to larger cities .Also the psychology of the locals are such that they tend to stay in touch with there dear ones unlike in western world. For this purpose they purchase the servers, which manipulate them by high call charges, low quality and poor customer service in small cities and towns and maintain the monopoly. Thus after careful study of the market place and determining the need wants and demand of the local people, this international telecom company decided to launch their services here. Also this is one of the reasons that the company first launched its brand in Pakistan because it saw high potential in the place.

COMPANY STATEGY
Mission Statement TELENOR, mission statement is extremely simple. They believe in creating superior values and providing excellent services by there 5 words mission statement. WE ARE HERE TO HELP Their main aim is to facilitate not only there consumers but also shareholders, employees, as well as partner, Also recently they have taken the steps for promoting the goods in the society. The band's logo is a symbol of change, movement and innovation. The blue three petal flower shows the space for change and preference for new idea as well shows that the petal would move from one corner of land to other connecting people through out . Company's Goal and Objectives TELENOR's main strategy is to focus on subscriber growth in he telecom sector as well as to increase there overall profitability by developing strong relationship with their customers. For this they have started to work on their new and innovative services such as EASY PISA, DOCTOR HELP SERVICE, EASY KAROBAR etc. this not only give this international brand customers value in return but also help them to grow immensely

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Existing Product

New Product

Existing Market New Market

Telenor Talkshawk

Djuice Easy Paisa (banking and payment of bills)

Thus this table shows how the company works in order to facilitate its customer by offering them of variety of products and increasing its market share to 25 % of the telecom sector as well as its growth rate has reached over 105 million use, when Talk Shawk was introduced. More over introduction of djuice, to the brand product line gave them an immense growth. As djuice was corely for youth, the introduction made the whole next generation going mad after he respected service, resulting in a boom in market share, growing from 10% to 23% in three years. Objectives Market share in terms of subscribers Market penetration Market share in terms of revenue 2006-2007 10% 9% 7% 2015 40% 30% 30%

MARKET TARGETING AND SEGMENTATION

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. Telenor is using multiple segmentation strategy and developing separate marketing program for each segment because different customers are looking for different benefits from different services they purchase. Estimating the market potential of each segment includes asking how many prospects with how much purchase power there is for each particular want .Market to Segment regarding Pakistan different markets are segmented by Telenor on the basis of

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1.

Geographical (Area wise) In Pakistan Telenor is segmenting the whole country region wise. There are different regions in Pakistan. Telenor is providing service specially in Northern Areas and in Rural areas of Sindh, Balochistan and Punjab where others are not providing services

2.

Demographic This refers to the Age and life styles of variety of people living in the country Telenor knows that needs and wants of customers changes as they go through life. So, with change in age Telenor introduces different services. The main segmented market is the young people of age 15-30. Pre paid- mostly Students, youngsters and middle class Talk Shawk Djuice Prepaid Talkshawk Talkshawk Talkshawk Djuice Age 15-22 20-27 25 onwards 15-24

Thus Telenor gives 2 different services for their customer to talk or to chat without any restrictions. TALKSHAWK is for those who want to tall on cell for hours on minimal charges. While Djuice promotes texting and group calls between friends. Post paid-paid service targets the Business Class mainly. Persona Karoobar Plus Type of service Persona the highly Karoobar Age 32-55 35 onwards

The main aim to introduce persona is to facilitate the businessman and people who want efficient and highly effective service to maintain there daily tight schedule. Also post paid is beneficial for them as it is based on monthly bill paying system. Thus the highly committed person could use his/her cell without any fear without any additional charges.

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3.

Psycho Graphically (Personality) Psychographic segmentation goes beyond demographic. Telenor doing segmentation on the basis of customers mind set. Telenor is segmenting the customers as they are giving different packages for different personality. There are seven packages of Telenor on the basis of different call & sms rates.

4.

Behavior Telenor is segmenting the customers according to their behavior, mind set and thinking. Different people have different behavior, different mind set different thinking Telenor is segmenting behaviorally by offering different package in pre paid and different plans in post paid. Singers are liked by people the singing culture is being promoted in our country so they hire singers for their promotions to hit customers mind the highly.

Product Positioning Analysis Market Segmentation Youth and student Women Financially constraint Corporate Today 25% 10% 40% 25% Future Forecast 27% 20% 23% 30% Existing Product Djuice, Talkshawk Talkshawk Talk shawk Post paid packages Profibility (%age) 29% 21% 20% 30%

ENVIRONMENT
ENVIRONMENT is basically the environment in which the company operates and thrive themselves. Environment plays essential part as they may directly affect the services telenor is providing. The basic environment is divided in to two categories External Environment Internal Environment

External Environment
Telenor Pakistan is an open system and operating in a competitive environment. External environmental variables like telecommunication competitors, government rules and regulations, customers etc affecting its performance.

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Task Environment Telenor's task environment includes Industry Sector,, Market Sector, Human Resource and these sectors have a direct impact on the ability of Telenor to achieve its goals. Industry Sector ;The major competitors of Telenor Pakistan are Mobilink, Ufone, and Warid and zong competitors of Telenor but right now they are not in position of being the headache of Telenor. Market Sector; Market sector or the customer sector is the main sector that influences all the telecommunication companies. For a telecommunication company it is very important to satisfy its customer and to make long term relations with them. Moreover they are directly linked with the marketing department which has the responsibility of advertisement which is very important to grasp the attention of its customers. GENERAL ENVIRONMENT Social Cultural; is the sector that so far has influenced Telenor Pakistan more than any other factor. Telenor's parent company, which is Telenor international, is mainly owned by Norway and Denmark. As Pakistan is an Islamic country, so after the publication of cartoon in the newspapers of Norway and Denmark related to Holy Prophet S.A.W influenced Telenor Pakistan. The offices of Telenor were burnt down in Pakistan. After that mishap, Telenor built its goodwill with great hard work and consistency. Technology; Telecommunication industry is influenced heavily by the technology introduced and being used in the market by the company and its competitors. So far Telenor is dealing well with this factor and it is far ahead as compared to its competitors. Mobile TV is one example and Edge service in another one. GPRS and WAP are faster as compared to other networks. So, Telenor is having no problems related to technologies. Competitors; As an international brand and newly introduced, telenor has to make solid grounds for them in order to compete the existing deep rooted brands. Also due to cultural association the competitor have an edge on the respected company. However telenor, for past 10 years has mould itself according to the environment and has used effective strategy against the competitors; Ufone , mobilink and also a newly introduced international brand Zong. In order to remain its position on the top.

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Internal environment
Atmosphere; The first impression that the work place gives is an active, friendly and a professional place. There was a lot of communication going on. A very noticeable thing is the fact that there are no barriers between the working spaces. General Culture; The general culture of Telenor Pakistan is very professional and active. It helps the employees reach their true potential and doesnt not only provide them with a friendly place to work in but actually helps in developing their skills and help them find there true potential. Also the respected company's culture is some thing, its employee owns truly. There mission statement of helping is not restricted only to there service but this is practically done in the company and at each level. Stated by one of the employee, named Ahmed Mustafa, "We don't have regular workstations in our building. It makes you feel confined and one cannot enjoy the true spirit of TELENOR's culture, thus we have now introduced islands so that we can work together and communicate with each other effectively." Also they do have the a child care centre for the competent young mothers, so that they can not only work without any pressure but the child could also get the love of affection of so many. Team Work; Teamwork is encouraged in Telenor Pakistan. Most of tasks are assigned to teams. And giving them full empowerment to decide what is best for their product. Thus this not only makes the employees more dedicated but they tend to put more effort and give better output. Also when such kind of culture is developed, there is better chance of innovation and producing more effective products, as more research work is focused. Moreover, this allows more interactions between the general employees working thus it develop a more shared and understanding cultural environment which support immensely in growth of telenor! Customer Satisfaction; The people at Telenor Pakistan give first priority to the customer and try their best to fulfill the three levels of customer satisfaction. Since they are new in already existing market so they are trying to develop customer loyalty. The people who deal with the customers have been given training on how to interact with different people. Recruiting the Brightest; This is one of the main reasons for the positive atmosphere of the place is the fact that Telenor Pakistan only recruits the brightest in the market. Everyone is highly qualified and professional.

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ENVIRONMENT UNCERTAINTY The environment of Telenor is Complex and Unstable, with high uncertainty. There are only many external elements to compete with, and they all are dynamically active adapting to Environmental Uncertainty. The structure of Telenor suggests that it is adapting to environmental uncertainty. For this it has increased the number of its departments and positions, and also pays emphasis on communication and coordination between these depart Marketing strategy Telenor's marketing strategy can be understood as they put their services In the BCG growth- share matrix.

In Question mark, we will put the EasyPaisa. As it has low market share but high growth rate. As it is a new product, there is a lot of ambiguity and questions regarding the following product. As it is now on its initial level f development.

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A STAR Regarding Djuice, it has now become, as it has high market share and high growth rate. This means that its growing immensely and giving the telenor a boom in its production. Also it gives an edge to their traditional services, as it is mainly for the youth. Thus maximum number of population is availing this new service immensely. CASH COW This category refers to the product which forms main part of the company. In telenors case it is their TalkShawk service which has now stabilized to the extend that the while company rely maximum on this and their maximum revenue is generated by it. Thus having low growth rate and high market share, the cash cow acts as the cow which produces more on eating less. Also the revenue generated can be used to make investments in new projects. DOG Telenor persona is the post paid package of telenor. Although preferable for the business class it not the apple of the eye for the general public because of its high rates and complex packages. Thus it is the dog of telenor, because it has low market share and low growth rate. Consumer's Behavior; Consumer are the chief evaluators of a companies profit and loss and that is why it is crucial for a company to know exactly who its customers are and what is their demand, and what every customer wants is cheap rates and good service. Same is the case with telenor customers. Evaluating what the customers of telenor want is not easy as well, but if we take a look at the market of Pakistan the main customers of mobile companies are the younger generation and the business class. Both require cheap rates and good service. That is why cheap packages, are introduced to attract the young generation. Also, keeping in view the culture of Pakistan message packages are more promoted than call packages because messaging is more common amongst the general public instead of calls.

SWOT ANALYSIS
SWOT OF TELENOR PAKISTAN Strengths o Network Coverage TELENOR has a network of 15 company-owned sales and service centres, more than two hundred franchises and 100,000 retail outlets. TELENOR has a network coverage in more that 6000 locations and across all major highways of the country.

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o International Roaming TELENOR has introduced International Roaming facility or prepaid subscriber in various countries around the globe with the lowest call rates, featuring no security charges and activation charges. o License for Azad Jammu Kashmir And Northern Areas The company has also been awarded a license for providing cellular services in Azad Jammu and Kashmir and Northern Areas. o Solar Powered Base Stations TELENOR has launched solar powered base stations to increase network coverage. Solar powered base stations are energy-efficient and eco-friendly. o Launch of Edge After launching EDGE in August 2006, TELENOR PAKISTAN has the countrys widest EDGE coverage, allowing access to high-speed internet and data services. o Value Added Services TELENOR is a host of value added services and data connectivity with the best network in Pakistan. o Lowest Prices TELENOR offers the most reasonable prices for its users. o Second Largest Market Share TELENOR is the second largest cellular operator in Pakistan with market share of nearly 27% TELENOR DJUICE brand is now considered to be one of the most favorite brands by the youth market. WEAKNESS o Behind on Excessive Demand This is TELENORs biggest weakness; company is unable to meet the Demands. o Low Profit Margin As compared to financial assets, TELENOR is not close to expected profitability due to low profit margin.

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o Lack of Franchise It has many franchises in the whole country but as its customers are increasing day by day so its present franchises are not enough to fulfill the needs of its customers. o Network Coverage Its coverage on Southern part of Pakistan is quite good but in northern areas its coverage is a bit poor. o Competition When TELENOR started its business in Pakistan cellular market, Mobilink was leading cellular company in the market and still it is a largest company in Pakistan because it was first to Pakistans cellular market and this is the competitive disadvantage to TELENOR and becomes its weakness. o Lack of Innovative Services TELENOR though has some unique and distinct services but it has not yet given many innovative services as compared to other cellular companies. OPPURTUNITIES o Continuing To Expand Globally TELENOR has the ability to expand globally. o Publicity and Marketing With the right marketing strategy TELENOR can acquire much more. o Develop new Value Added Service This is an opportunity that will never be satisfied, meaning that TELENOR should always be attempting to keep improving new value added services and as we know what is in today will be out tomorrow. o Develop Franchise In Remote Areas TELENOR should develop some new franchises in remote areas so that people will get more and more benefit from it and it will help to increase their customers. TELENOR should extend its network coverage area to Northern part of the country as well because in that part not too many companies are giving services and if TELENOR give its quality service there then it will definitely attract people and its number of customers will shoot like a rocket.

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ADVANTAGE FROM COMPETITORS Inefficiency and poor performance by competitors is big opportunity for TELENOR to increase its market share.

THREATS o Government Interference Government interference in terms of taxes will always be treated as a threat. o Increased Health Care Costs TELENOR, like many large companies with quality employees health care benefits, is experiencing a large financial hit that only get worse as time continues as compare to other cellular firms. o Tough Competition As TELENOR is cellular company and there is cut throat competition among cellular companies in Pakistan. There are six other companies also working in Pakistan so TELENOR would have to face some growing competitive pressures. o Pressure Group Some pressure groups are protesting on the towers that are installed in residential areas. Their opinion is that it is not good for health of people to have such towers near their homes that cause radiations. o Economic Problems Pakistan is facing some serious economic problems now days so that would also affect TELENOR. The current recession in market is not good fro any kind of business including telecommunication. o Propagandas Attacking Brand Image Propagandas attacking brand image are always great threats for TELENOR.

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QUESTIONER
1. 2. 3. 4. 5. 6. TELL US ABOUT YOUR BACKGROUND? WHAT IS YOUR VISION AND MISSION STATEMENT? WHAT ARE YOUR MARKETING STRATEGIES? WHAT IS YOUR COMPANY'S GOAL AND OBJECTIVE? WHAT IS YOUR TARGET MARKET ? WHAT IS YOUR MAJOR MARKET SEGMENTATION,STRATEGIES OF SEGMENTATION AND ON WHAT BASIS YOU ARE SEGMENTING YOUR MARKET ? 7. WHAT IS YOUR MARKET SHARE AMONG DIFFERENT GROUP OF PEOPLE ? 8. WHAT IS YOUR INTERNAL AND EXTERNAL ENVIRONMENT ? 9. HOW DO YOU POSITION YOURSELF AMONG DIFFERENT FOLK OF PEOPLE ? 10. HOW DO YOU ACHIEVE YOUR COSTUMER SATISFACTION ? SWOT ANALYSIS OF TELENOR PAKISTAN ?