Industry Background

Company snapshot

Brief sketch Telecom Limited is another venture of Abu Dhabi Group in the telecom industry of , after the launch of Warid Telecom (Pvt) Limited. The company was incorporated in March 2005 and commenced its LDI from May 01, 2005. A present, the majority of the share holding (80%) of WTL is with Warid Telecom International LLC and followed by 20% with Bank Alfalah. The fresh issuance of share will eventually dilute the holding of both companies Wateen Telecom Limited was incorporated in Pakistan under the Companies Ordinance 1984; on 4 March 2005.Wateen’s successful four years of operations in the telecom industry of Pakistan speak for itself. Some of the business’s salient features are presented below: Wateen is the largest alternative LDI operator in Pakistan. Largest commercial and first nationwide 3.5 GHz WIMAX network rollout in the world covering 22 cities and more than 1100 sites (900 live). Largest operator of Satellite services in the country (c. 500+ MHz in use). Wateen has one of the largest Optic Fiber network spanning over more than 10,000 km (including Government of Pakistan USF projects) across all the four provinces of Pakistan including metro connectivity in 22 cities. This network provides the backbone for Wateen’s National Transmission Services. Wateen with its Managed Capacity services (OFC & VSAT) serves almost all the major GSM and companies in Pakistan as well 86% of the Banking sector. Wateen’s FTTx (for provision of Cable TV services) and infotainment products are also being nurtured to ensure maximization of long term shareholder value. Sales performance has also been quite encouraging and consistent with over 20,000 monthly additions to the broadband and telephony subscriber base. Sales growth has been far steeper compared to the industry average, evident from the fact that Wateen enjoys over 60% share of the wireless broadband market. Wateen recently closed the largest syndicate financing transaction for the year 2010 raising PKR 4.7 billion from leading banks in the industry even in these challenging times showing the confidence of the market in Wateen’s business model and operations. Wateen also successfully closed one of the largest Islamic Financing deal in the same period. ARCH-e’-decon a leading evaluator in the telecom industry estimated current value of Wateen’s key strategic assets at PKR 17,289 million translating into intrinsic value of PKR 52.5 per share. such a high book value share will now be available through the IPO at par value of PKR 10.0 per share-a huge discount for the people of Pakistan to benefit from Place in the industry hhhhh

Vision To launch Pakistan into the 21st century digital revolution by providing complete communication and media solutions to Telecom Operators, Corporate, Consumers and to be the leading “Carriers’ Carrier” by creating a world-class cutting-edge network to deliver a broad range of reliable, affordable and quality customer-centric services. To make Pakistan a regional communications hub, inter-connecting the East with the West and Central Asia

Mission  To provide affordable communication services that meet and exceeds customers' requirements.  To deliver high-quality, flexible and innovative solutions that is cost effective and conducive.  To provide complete customer satisfaction on time, every time.  To make Broadband Pakistan a reality. Core Philosophy "Our core philosophy of honesty, transparency in customer dealings, product innovation, excellence in customer service and our commitment to be a responsible corporate citizen pervades this website”

Slogan The Faith that guides.

Objectives The objective of this project is to give overview of marketing strategy of Wateen Telecom services to viewers in Pakistan. To launch Pakistan into the 21st century digital revolution by providing complete communication and media solutions to Telecom Operators, Corporate and Consumers, to be the leading “Carriers’ Carrier” by creating a world-class cutting-edge network and to deliver a diverse range of reliable, affordable and quality customer- centric services. It includes introduction of company and product, external and internal environment, market and competitor analysis, and marketing mix. Resources

Product line;

WATEEN WIMAX  Satellite system  Better Quality  Freedom from Cable Guy Wateen is mixture of consumer and industrial product (According to its usage) it is a internet brand banned that provide as many internet facilities. Wateen offers you a complete option freedom to connect friends and also provide facilities to internet user. Wimax is latest technology in Pakistan internet field with the following:  Video games  Movies  Connect with friends  High speed  Geographic mobility Packages Wateen offering wireless internet connections in USB/Wi-Fi devices which are 256kbps/512kbps/1Mbps. Offering unliminted,10GB and 5GB packages. IMbps package as low as 699 Rs Per Month Only. Wateen Brings Wimax Wireless Internet in USB and Wi-Fi devices No need of Telephone Line • Installation within no time at customer Premises • Home delivery service of cost • Unlimited Packages, Prepaid/Postpaid Packages • Just on one call get Wateen Connection . • Portability(Moveable) is another important feature, You can use Internet anywhere in 22 major cities of Pakistan . Device we will provide is small in size and you can carry it anywhere with you • Join Wateen online gaming zone for Free • Offering unliminted,10GB and 5GB packages Monthly Charges for 1Mbps Packages 1Mbps/5GB in 799Rs, 1Mbps/10GB in 1199Rs, 1Mbps/Unlimited in 1499Rs Subscription of Indoor/Outdoor CPE (one time only) Subscription for unlimited & 10GB packages RS. 1000 Subscription for 5GB packages RS. 1500

Three types of packages with value added features like parental control and programs in regional languages enables Wateen Telecom to capture a large market share. There are three segments in market, based on different SECs. Different products are targeted to each segment. The product details are as below: Basic Package: This package is targeted to segment “SEC CD”, with basic features of DTH, and with either 100 channels. It is because segment SEC CD is price sensitive and prefers price over variety and quality of channels. Premium Package: This package is targeted to segment “SEC BC”, with basic features of DTH plus internet facility, and with 120 channels. It is because segment SEC BC demands variety and quality of channels, but also it does not want to pay a higher price for the service. Therefore, a package with more number of channels than basic package, which fits into their buying capacity, is suggested for segment SEC BC. Premium plus Package: This package is targeted to “SEC AB”, with basic features of DTH plus internet facility, and with 150 channels. This segment is not price conscious and demands better service, quality and more number of channels.

Sales History

Target Market According to one of the representatives of Warid that Warid has divided its target market in to categories of A+, A-, B+, B-, C, D, E and F

CATEGORIES: CHARACTERISTICS:  A+ & A- Age group of 28 to 32, 40+ and of upper-income level (Urban)  B+ & B- Age group of 22 to 27 and of lower-upper-income level (Urban)  C Age group of 18 to 21 young stars (CORE TARGET) (Urban)  D Age group of 13 to 17 and low lower income level all Ages(Urban)  E & Users of Semi-urban areas (Has planned to launch)

Consumer or Industrial Warid is providing their packages at both levels. Consumer level is provided in this report, while, industrial level has variable domain, settled according to no. of connections and on the nature of packages according to line rents etc.

Buying Characteristics Warid is very much selective and stresses on value added purchases Market Potential Currently market is on SATURATION POINT as for Urban areas concern and as for as Rural Areas concern there is great POTENTIAL. Warid is going to launch its products in Semi-Urban and Rural Areas

Product Positioning As Warid is new in the market of Pakistan and is still trying to make its position in the mind of customer better than existing big giant . Although Warid is new in market but it has acquired a good position as for as Zero line rent post- paid connections and low rate pre-paid connections. In my point of view, as Warid launched its products in Pakistan with a MARKET PUSHER STRATEGY, while providing low rates, not only it has made its position better but also made other networks to reduce their prices.

Market Shares Warid has covered 9.782 % of total market share Warid’ s connections 1,800,000 Total Mobile users 18,400,233 Warid’s share 9.782485

Positioning As Warid is new in the market of Pakistan and is still trying to make its position in the mind of customer better than existing big giant Mobilink. Although Warid is new in market but it has acquired a good position as for as Zero line rent post- paid connections and low rate pre-paid connections. MARKET PUSHER STRATEGY In our point of view, as Warid launched its products in Pakistan with a MARKET PUSHER STRATEGY, while providing low rates, not only it has made its position better but also made other networks to reduce their prices.

Current Marketing Mix PRODUCT WATEEN WIMAX

 Satellite system  Better Quality  Freedom from Cable Guy Watten wimax is mixture of consumer and industrial product (According to its usage) it is a internet brand banned that provide as many internet facilities. Watten offers you a complete option freedom to connect friends and also provide facilities to internet user. Wimax is latest technology in Pakistan internet field with the following:

 Video games  Movies  Connect with friends  High speed  Geographic mobility

Price

Tarrif of Wateen WiMAX Broadband is as Under.

Watten telecom use the innovation pricing. They use skimming pricing strategy. for the first time in Pakistan company introduce student package business packages etc.

Promotion

Company totally advertises their product. Wateen use all promotional tools instead of public rationing they use all medium for advertisement.

Broadly speaking the promotional goals of the company are:

 To create awareness about Wateen wimax(without cable)

 To encourage people who use cable

The company plans allocate a substantial chunk of its budget for spending on communication through electronic and print media for initially.

Advertisement: Warid is using both, ATL (Above The Line) and BTL (Below The Line) advertisement for its products.

Personal Selling: Role of personal selling is used by Warid through  Interaction  Events  Shopping centers

Public Relations: Warid is keeping public relations and publicity in mind and doing great work on it.

Sales Promotion: Warid is doing Sales/Trade Promotions but kept confidential.

Product/Service Review

Category Review

Life Cycle Stage

Situational Analysis

Strengths

 Related Business: Wateen Telecom is already into telecom business and has developed managerial and technical capabilities.

 Innovation: The Wateen has an innovative addition to the service as far as Pakistani market is concerned. It is in line with the policy of the company to tap the markets where consumers’ needs are not being addressed.

 Brand equity: The Company has an established brand name.

 Extensive distribution channels: Wateen has extensive distribution channels for the distribution of its new service.

 Market oriented: Company’s comparative advantage lies in already accumulated knowledge, experience and data in the field.

 Financial muscle: Wateen has sufficient resources to invest in the new project.

Weaknesses  Unpredictable market: Pakistani market is very unstable.

 Unskilled workforce: Specialized training is required for workforce and management to cope with new challenges emerging from the introduction of the new service.

 No existing alliances: The company is making alliances with certain new suppliers for the equipment etc. which, at present it does not have.

 Low initial returns: Return on investment is initially low.

 Cannibalization: The Company has also launched cable service for some areas. Due to launch of DTH these services are cannibalize each other.

 High turnover rates: The Company has not been able to retain good employees for long term. It would also hamper the ability of the company to handle the launch of new service successfully if the turnover rate does not come down.

Opportunities  General flaws of existing services: people are not satisfied with the existing service because of various reasons including interruptions, a lot of advertisement, poor customer service etc. They have responded enthusiastically towards the Wateen service.

 Remote access: The biggest opportunity in Pakistani market is that there are certain areas where the services of competitors can not reach. In those areas there are sufficient people who need the services the company plans to offer. So, there are sufficient unmet needs in the market which can be catered through the Wateen.

 Inflexible existing services: In some areas the existing services are not offering to satisfy the customer. The Wateen services are promising as it would provide exactly what customer needs.

 Growth in the market: The market for entertainment is growing with the growth of middle income segment in Pakistan. These customers are increasingly demanding better services as far as entertainment is concerned.

Threats  Legislative environment: Negative legislative developments remain a threat to the success of Wateen.  Downturn in economy: The down turn in Pakistani economy might have impact on disposable income of the population. General well being of economy always has favorable impact on all the businesses Wateen services would not be an exception.

 Little potential differentiation: It is expected that other competitors would enter the market. It might start price war between Wateen Telecom and potential competitors. In that case there would be very less differentiation Wateen would be able to offer given the nature of the service.

 Increased bargaining power of suppliers: The Company would need vital alliances with suppliers and other partners. They might be suppliers of the competitors. Suppliers’ bargaining power might increase in that case making input costs high and leaving the company in difficult position.

 Uncertain demand: It is very difficult to estimate the exact demand for the service. There might be variation which could result in losses for the company.

 Employee retention: The Company might lose its key personnel to other competitors once they enter the market. So, retention of good staff would remain a challenge and losing it would always present a threat.

Key Benefits

Wateen been selected by Warid Telecom, to procure and deploy Cisco Network equipment to carry Warid’s GSM/Packet/LTE traffic over Metro Network.

It is a matter of great pride that Wateen has been awarded a USD 5 million project whereby Wateen will procure, install and configure solutions based on Cisco Hardware, in collaboration with Warid Telecom. Wateen has been chosen for this task due to its unique edge and expertise in Service Provider network and integration skills sets in Metro and IP Core networks. Major components of the project include Cisco ASR routing and switching Metro Network and Cisco Optical DWDM network in major cities of Pakistan, along with integration to Warid IP Core Network.

Wateen is and will be playing a major role in this revolution by enabling our partners and customers like Warid, and this project plays a strategic role in proving Wateen’s competitiveness and skills in the area. The will allow a competitive edge to our company not only in Pakistan but for grabbing regional services as well. Brand Image

Warid Wateen has an overall good image in the minds of customer. Most of the people prefer this brand mostly in options of other brands on the basis of its quality, speed and access etc.

Positioning

As Warid is new in the market of Pakistan and is still trying to make its position in the mind of customer better than existing big giant Mobilink. Although Warid is new in market but it has acquired a good position as for as Zero line rent post- paid connections and low rate pre-paid connections. MARKET PUSHER STRATEGY In our point of view, as Warid launched its products in Pakistan with a MARKET PUSHER STRATEGY, while providing low rates, not only it has made its position better but also made other networks to reduce their prices. Perceptual Map

Competitive Review

Competitor Analysis

When Wateen launch wimax broad band no one in Pakistan direct competitor of wimax . but many others indirect competitors are present. But now this time after launching wimax broad band many direct competitors are also launch their products in field of internet broad band for compute Wateen wimax

Indirect competitors

 Ptcl(broad band)  Pakistan on line  Cyber  Nexlinx dsl  Real Pak internet

Direct competitors

Fowlloing are the broad bands who compete wateen in market directly

 Mobilink broad band  Zong witribe  Qubee broad band  Worldcall wirless  Proxim world class wimax  4G networks  CMPAK networking

After careful analysis we conclude that wimax is a unique broad band for internet problems. Wimax provide solutions of all problems related to internet.

Key competitors

Market Share

Cable and Since the introduction of cable TV in 2000, the Pakistan Media Regulatory Authority (PEMRA) - the regulatory body in Pakistan - has issued broadcasting rights to 49 TV channels. However, the unofficial number of channels can go up to 100, depending on the local cable TV service provider. An average cable connection takes a monthly bill of PKR 250 to view an array of ‘free’ and pay channels. Satellite channel subscription lost its popularity with the arrival of cable TV in the major cities. However, it is still used extensively in distant areas where cable TV is not available. About 7% of TV set owners has satellite dishes, which means that given the number of TV sets i.e. 8 million, satellite TV subscribers are 560,000 in year 2006.