ASIM SHAFI…..GM marketing
HAMMAD ATA TUNG…..GM administration
HANI ARIF ANSARI…..GM sales
MUHAMMAD RIZWAN ZAFAR…..GM HR
MUHAMMAD SAAD. J. GHORI…..GM R&D
SHAREEM JAVED…..GM production
SOHAIL RAZA…..GM customer services
WAQAS JAVED KHAN…..GM finance
This project demanded our group to apply the marketing management concepts on some
institution existing in the real market of Pakistan. The institution given to us as a project
development material was “WARID TELECOM (PAKISTAN)”.
In this project we have devised a complete working plan for WARID to expand its
network in Pakistan by exploring ten cities of Sindh in the first step. The study of this
working plan would hopefully allow WARID to avoid the major marketing and planning
headaches ranging from the development of a strategic plan to the new product
development. Before going into the crux of our project let us first give the introduction
and a brief history of WARID telecom.
Introduction and history of Warid
The Abu Dhabi Group, one of the largest groups in the Middle East, backs Warid
Telecom. HH Shaikh Nahyan Mabarak Al Nahayan who is also Minister of Higher
Education of UNITED ARAB EMIRATES leads the group and Scientific
Research.Warid Telecom started its operation in May 2005 from Pakistan.
Warid Telecom has implemented a new and modern corporate identity as a result of the
dynamic changes taking place in the telecom industry in Pakistan. With a reflection of a
new strategy, its aim is to be perceived not only as a telecommunication operator of voice
services, but also as a universal provider of comprehensive communications services for
both residential and business customers. Warid's corporate identity seeks to reflect the
changes in telecom sector in relation to helping customers keep pace with rapidly
changing technology in the field of communication, and to harmonize the customers'
perception of our brand with the quality and range of our services. Its objective is to
provide optimum level of support and care through its maximum network coverage and
clear connectivity that Warid has committed to provide.
Warid Telecom decided to opt for GSM (Global System for Mobile Communication)
technology as it is the global standard for digital cellular telephone service. GSM
networks support enhanced data applications and more than 1 billion customers in 109
countries are using this technology. Warid Telecom would be launching its cellular
services based on 900 and 1800 GSM technology, in order to optimize the utilization of
frequency, thus ensuring the highest quality and service.
Our group has proposed to take WARID all over PAKISTAN. At present WARID is
only working in the major urban centers of PAKISTAN. Even though it is easy to work
in these cities due to the availability of infrastructure and manpower but at the same time
working in these cities means tough competition and slow growth. Our proposal will
allow WARID to target a new market with less or in some cases no direct competitors.
In the beginning of our dream to take WARID all over Pakistan, we only want to take
WARID to the following ten cities of Sindh.
• Mir Pur Khas
• Tindu ALLAH Yar
For our proposal to take a practical shape we have devised a strategic plan, the salient
features of which are given below.
The managerial process of maintaining a viable fit between the organization’s
objective, skills and resources and its changing market opportunities is called a strategic
1. STRATEGIC PLANNING: -
Strategic planning calls for actions in three key areas. The first is managing a
company’s business as an investment portfolio. The second involves assessing each
business’s strength by considering the market’s growth rate and the company’s position
and fit in that market. The third is establishing a strategy. For each business, the company
must develop a game plan for achieving its long run objectives.
Corporate strategic planning involves four planning activities:
1. Defining the corporate mission
2. Establishing strategic business units (SBUs).
3. Assigning resources to each SBU.
4. Planning new businesses, downsizing, or terminating older businesses.
Once the corporate strategic planning is done then each business unit working under a
corporation does its strategic planning, separately from other SBU’s.
2. STRATEGIC PLANNNIG OF WARID: -
In this part of our project we would be explaining the current strategic planning of
WARID and our proposed changes in it. It is pertinent here to mention that WARID is an
international company working in many different countries. We in this project are only
concerned with the working procedure of WARID in Pakistan. When it comes to WARID
Pakistan then steps no 2-4 is skipped in the overall corporate strategic plan since there are
no SBU’S of WARID in Pakistan. The basic strategic planning of WARID is thus done,
by considering WARID (Pakistan) as a single business unit. For the sake of simplicity the
future references to WARID (Pakistan) in this report would be made as “WARID” only.
2.1 WARID’S POSITION IN THE GROWTH SHARE MATRIX: -
The corporations to get an idea about the market position of the different SBU’S
commonly use the growth share matrix approach. To get a fair idea about the current
market position of WARID we placed WARID in the growth share matrix. The findings
of our analysis are given below.
In the growth share matrix the vertical axis measures the annual growth rate of the market
in which the business operates while the horizontal axis weighs the relative market share
of the business as compared to the largest competitor.
We have placed WARID as a Question mark in this matrix. The reason being that the
growth rate of the telecom industry in Pakistan is very high and WARID has a low
relative market share as compared to MOBILINK, which has the highest market share.
2.1.1 ANALYSIS OF THE FINDINGS: -
Even though WARID at present is a “question mark” but there isn’t any need to panic
for them. MOBILINK as we all know is the pioneer of the mobile services in
PAKISTAN. WARID compared to it is still young in the market and the growth rate for
WARID is not bad, rather it is higher than MOBILINK in the past few years. What
WARID need is to keep pumping money in its developmental and marketing budget and
increase its customer base. This is the only way in which it can hope to become a star in
the growth share matrix.
3. THE STRATEGIC PLAN
We did the strategic planning of WARID in the following steps.
3.1 MISSION STATEMENT: -
The first requirement of a strategic plan is a well-elaborated and a practical mission
statement. The proposed mission statement of WARID is as follows:
“ WARID is committed to serve the needs of the community by providing
services of superior quality at a fair price to our customers; to do this so as to earn
adequate profits, which is required for the enterprise to grow all over PAKISTAN;
and by doing so becoming the market leaders in the country.”
3.1.1 SIGNIFICANCE: -
Our proposed mission statement suggests that WARID wants to earn profits but its main
aim is to expand and become the market leader. Our proposal is in line with our mission
3.2 SWOT ANALYSIS: -
The overall evaluation of a company’s strengths, weaknesses, opportunities and threats
is called SWOT analysis.
3.2.1 PRESENT POSITION: -
WARID has a marketing intelligence system, which works to track trends and
developments by monitoring the key micro and macro environmental factors. Despite that
WARID has not been able to identify SINDH as a land of opportunity. Thus they
certainly have performed their SWOT analysis differently to us.
3.2.2 PROPOSED POSITION
126.96.36.199 EXTERNAL ENVIRONMENT ANALYIS: -
The scanning of the macro environmental forces (demographics, economic, etc) and
significant micro environmental factors (customers, competitors, and distributors) lead us
to believe that Sindh is the right area to introduce our services. According to our scanning
the people of the targeted cities of Sindh want a mobile service as good as WARID. For
this trend of the people of Sindh we have identified the following opportunities and
threats for WARID.
188.8.131.52 OPPORTUNITIES: -
A major purpose of environmental scanning is to discern new marketing opportunities.
The analysis of the Sindh’s environment landed us in to this great area of opportunity,
where WARID can definitely excel. The opportunities of growth are great in these areas
of Sindh. The major share of the population is young and mature. The economic
conditions are good enough to afford our services. Thus there is a strong likelihood that
WARID develops a huge market for its services.
184.108.40.206 THREATS: -
In some of the ten cities in which we are launching our services MOBILINK already
exists. So there is a threat that people may reject our services in favor of MOBILINK.
A potential threat can also be seen in the higher costs involved ands its potential returns.
220.127.116.11 CONCLUSION: -
After doing the SWOT analysis of WARID, we asked ourselves the following questions.
1. Does WARID have the critical capabilities and resources needed to deliver the
customer benefits to the people of the targeted cities?
2. Can WARID deliver the benefits better than any actual or potential competitors?
3. Will the financial rate of return meet or exceed the company’s required threshold of
The answers to all these questions according to us are “yes”, which assured us that the
opportunity for WARID to introduce its services in Sindh has got high attractiveness and
high success probability.
3.2.3 INTERNAL ENVIRONMENT ANALYSIS: -
It involves the scanning of the working relationships between the depts. Since we can’t
have any access into the internal environment of WARID thus we can’t say anything
about the present position of their internal environment.
3.3 GOAL FORMULATION
After the SWOT analysis the next step is to develop a specific goal for the planning
We have set the following simple goals for WARID in this strategic plan. They appear as
follows in the order of their importance.
• To grab the largest market share in all the ten cities of Sindh and hence increasing the
existing growth rate in the whole market.
• To increase the ROI to a good rate within two years of operations in Sindh
3.4 STRATEGIC FORMULATION
Strategy is a game plan for getting to the goals, after much deliberation we have
unanimously decided that the most effective strategy to achieve our goals in Sindh would
be the “overall cost leader ship strategy”. On a whole we have proposed “focus strategy”
for WARID which would allow it to use differentiation strategy in some targeted
3.4.1 OVER ALL COST LEADER SHIP
This strategy focuses on achieving the lowest production and distribution costs so that it
can win a large market share. This strategy may give a problem that other firms can
compete with still lower costs and hurt the firm using cost leadership strategy.
We think that over all cost leadership strategy is the best way to go in Sindh due to the
• People of Sindh are not as demanding when it comes to quality
• Cost effectiveness rather than quality is more likely to grab market’s attention in this
• In some of the ten cities WARID is not going to face any competitors so they can
build a good share of loyal clientage
• In the cities where MOBILINK is already present the lower rates would help
WARID to grab the major share
• Based on our analysis we can carefully say that there is little or no probability of this
3.4.2 OPERATIONAL EFFECTIVENESS AND STRATEGIC ALLIANCES: -
In the cities where WARID is already working we propose the following changes in
• At present WARID is working on over all cost leadership strategy in the entire market
• We propose that they adopt focus strategy and work on differentiation strategy in
some segments of the market.
• WARID should try to form a promotional alliance with a leading mobile company
such as nokia.
• WARID should also try to form a service alliance with some company.
We are pretty confident that the strategic plan we have proposed can be carried out
For any strategic plan to be implemented properly, it is important that the employees
have the skills and the shared guiding values. Synchronization in style of working is also
very important. In our view WARID has the capacity and the capability to implement the
strategic plan which our group has designed.
3.6 FEED BACK AND CONTROL
Tracking the results obtained from the implementation of the current strategy and
monitoring the new developments so as to respond to them is very important for the
success of any firm.
For WARID to become successful in Sindh, it is very important for them to get the
feedback of the people. The findings in the feed back would be very important in
allowing WARID to achieve the desired results.
4 CONSUMER MARKET
Focusing on Sindh as our consumer market the variables that could be used to segment
our market are:
4.1 DEMORAPHIC SEGMENTATION VARIABLES
The percentage of the people living in Sindh who are under the age of 14 who are
between 14-55 and those who are over 55 shall be calculated by WARID. This data
can help WARID collect valuable information about the percentage of people who are
inclined to use this service.
People living in rural areas mostly have low income levels, the majority of the
population of Sindh comes under the category of low middle class or middle class
which makes our targeted audience a majority in the over all population.
Most of the people living in rural areas earn through farming, there is a good
number of industrialists and landlords while others are clerks, retired or doing other
government or private jobs.
A large percentage of people of Sindh are uneducated. This high illiteracy rate is
unlikely to affect WARID’S success in the region.
4.2 PSYCHOGRAPHIC SEGMENTATION VARIABLES
The lifestyles of people living in Sindh are not that extravagant, they live a relatively
• PERSONALITY CHARACTERISTICS
People of Sindh are conservative in their approach when it comes to innovations
4.3 BEHAVIOURAL SEGMENTATION VARIABLES
The benefits that they desire from our product could be
1. Short messaging service
2. Incoming and outgoing call facility
3. Missed call alerts(MCA
4. Value added services
A large percentage of the people living in Sindh fall into the indifferent group
category, a few can be categorised as enthusiastic.
4.4 CONCLUSION: -
Segmentation can also do in many other ways such as using the geographical or
business buying segmentation. In our view WARID should target its market in Sindh
without going in to too much detailed segmentations. As WARID aspires to provide good
services in low prices thus a largely mass marketing approach shall be used by them.
5. TARGET MARKET
As mentioned earlier WARID should focus to expand its network in the following
cities of Sindh:
SANGHAR, MIR PUR KHAAS, SHIKAR PUR, TANDO ALAH YAR,
THARPARKAR, THATTA, UMERKOT, BADHU, GHOTKI, and JACCOBABAD
WARID should focus to cover these mostly rural areas where cellular services are very
For this particular target market WARID has to take into consideration the following
factors which will affect its target market strategy
5.1 LEVEL OF COMPETITION:
This factor also effects WARID’S target market strategy warid has to take into
consideration its only competitor, which is MOBILINK. WARID should take into
account the services which, MOBILINK is providing in those areas.
5.2 POWER OF BUYERS:
What is the power of buyers? Who will buy this package of warid, as the power of buyers
is low as compared to big cities due to the lack of facilities warid has to undergo this
factor to in order to do proper and effective target market strategy
5.3 POWER OF SUPPLIERS:
Now again the power of suppliers is another factor which influences WARIDS over all
game plan for these areas so proper supplies are to be maintained in order to carry out the
tasks assigned to the target market
5.4 COMPANY’S OBJECTIVE AND RESOURCES:
Warid has to also look into its resources whether enough finances, marketing facilities are
there to proceed with its objectives or not this is another main factor in analyzing the
5.5 TARGET MARKET STRATEGIES:
There are many target market strategies but WARID according to us should apply the
5.5.1 DIFFERENTIATED TARGET MARKET STRATEGY:
WARID will focus on different segments of the target market and will give different
packages and incentives for the different segments
Now for this differentiated target market strategy there are many factors which will affect
WARID differentiated target market strategy these are
18.104.22.168 COMPANY RESOURCES:
Warid has to see whether enough resources are there in order to carry out the over all
game plan of differentiated target marketing strategy factors like human resources,
production resources, company’s image financial resources all these are to be taken into
22.214.171.124 PRODUCT LIFE CYCLE STAGE:
This is another important factor that what is the current product life cycle stage of warid
whether it’s in the recession, trough, decline or peak stage, and also the BCG growth
matrix i-e. WARID has to see where it stands in the BCG growth matrix in order to apply
its target market strategy successfully
126.96.36.199 MARKET VARIABILITY:
What’s the level of market variability in the targeted areas of SINDH as the market
variability is not the same in all the areas of SINDH warid has to take into consideration
this factor too.
188.8.131.52 COMPETITORS MARKETING STRATEGIES:
Warid has to see that its biggest competitor MOBILINK is applying which strategies in
order to penetrate into the market, warid has to apply its strategy in such a way that it
should be more effective then the other competitor’s strategies
5.5.2 SEGMENTS: -
We suggest that WARID use an “undifferentiated target market” for this project. But for
convenience WARID can target the following segments somewhat differently.
For students having age between 15 to 30 warid should launch a package with low rates
better messaging facilities i-e both MMS and SMS facilities and good GPRS facilities in
very low rates.
184.108.40.206 BUSINESS MEN:
AS mostly in these areas the main source of earning is business so warid wishes to launch
a package for this particular strategy, which contains low call rates and facilities like
different rates of goods and commodities in accordance with the day to day transactions,
the current condition of the business markets in those areas etc.
IN this warid focuses on all the customers other than students and businessmen they can
be government employees, housewives, working women, farmers or whatever. This
package will contain very low call rates and good SMS AND MMS facilities and another
new facility of HAPPY WEEKEND in which very low call rates will be provided to
customers at weekends all over Pakistan and on all networks.
SO currently warids target market strategy is to focus on the above mentioned segments
The other important step in order to make WARID come out with flying colors is
it’s positioning i.e. how the consumer perceives about the product so in order to position
warid way ahead than its competitor. Different factors, ideas and strategies are to be
taken into consideration. Following are some attributes due to which WARID can
position itself in a prominent and efficient manner.
These are some factors, which positions WARID way ahead of its competitors. The
proposed strategy of WARID is to go all over Pakistan and currently Sindh’s most rural
areas are taken into consideration where there is either no cellular service or very few
other competitor cellular service providers are there.
6.1 THE POSITIONING STRATEGY: -
In order to carry out a distinctive positioning strategy warid needs to identify all the
possible competitive advantages. Some of these are mentioned above but the most
important and other competitive advantage is of FRANCHISE CENTER services in all
these areas of Sindh. WARID should construct more and more franchise centers in all the
areas, in order to provide customer’s services near the customer’s homes so they won’t
need to go longer distances to solve their cellular service based problems.
Other than this there are several other competitive advantages of warid such as no busy
networks, better networking facilities, easy access to international communication modes
6.2 THE POSITIONING STATEMENT: -
“IT IS FOR ALL THOSE POTENTIAL CONSUMERS OF CELLULAR SERVICES
WHO WANT TO COMMUNICATE AND ENJOY THE FACILITY OF CELLULAR
SERVICE AT A VERY LOW COST, WARID TENDS TO PROVIDE THEM WITH
SUCH A SERVICE WHICH CAN MAKE ALL THEIR WISHES COME TRUE”
Firms can adopt different positioning strategies, some of which are given below:
3-PRODUCT CATEGORY POSITIONING
5-QUALITY OR PRICE POSITIONING
after much deliberation we decided that WARD should adopt the following strategy
6.3 QUALITY OR PRICE POSITIONING: -
The major competitive advantage that warid enjoys is its price and quality of the product
and that is cellular service which is an intangible product, and in this type of positioning
the product is positioned as “offering the best value for money”.
Now as far as the quality of the product is concerned WARID can enjoy an advantage
over the competitors because in these rural areas of SINDH only one other cellular
service provider is there. According to our surveys people complain about having
network problems. WARID’S network should satisfy international standards
guaranteeing no blockage of network, clear voice communication and no network issues
which, might put off the people from using it.
AS far as the pricing is concerned WARID should have different packages with different
prices, cheaper as compared to the other cellular service. WARID was the first to initiate
the package of free sms services and call rates within the country without any roaming
charges. And in accordance with the mission statement WARID should continue to
position itself with this strategy in order to position itself as the leaders of the market.
7 NEW PRODUCT DEVELOPMENT
After segmentation of the market, identification of the target market and positioning of a
company the next step is the new product development. It is new product development,
which shapes a company’s future. In this project our group is giving a comprehensive
working plan for WARID, and no marketing plan is complete without giving due
consideration to developing new products. The new product development process for
WARID is given below.
7.1 IDEA GENERATION: -
The new product development process starts with the search of ideas. After the
introduction of WARID’S services in Sindh, they would need to develop new ideas to
capture a larger market share. 3 of the members of our group came up with three different
ideas for our services in Sindh. Following were those ideas.
1. Introduction of video conversation in the targeted areas of Sindh.
2. Providing the facility of mobile T.V in Sindh.
3. Get into an agreement with Nokia.
Under this agreement:
• Nokia would produce revised versions of 1100 and 1110 exclusively for WARID. In
these revised versions the key -pads, all mobile-functions and accessories would be
available in Sindhi language (along with English). The icons, e.g. “phone book”,
“games” would also appear in Sindhi.
• WARID would buy all the mobiles from Nokia, the quantity of mobiles to be
produced would be negotiated by both the parties.
• WARID would sell these mobiles along with its connection services as a package.
• WARID would have the exclusive marketing and selling rights of this package.
• The price of this package in the market would be set by WARID. Nokia would have
no bearing in that.
We suggested in this idea that once the agreement is reached, WARID should even
provide the customer services in Sindhi. This will give this idea a complete Sindhi look.
7.2 IDEA SCREENING: -
After the idea generation, next came the step of screening those ideas. Efficient idea
screening allows the companies to proceed with the best possible idea in the development
phase. We made the best of our efforts to avoid making “Go-error” or a “Drop-error”. A
Drop-error occurs when a company dismisses a good idea in the idea screening while a
Go-error occurs when a company permits an idea to move into development and
In this part of the new product development we roughly estimated the market size,
product price, development time and costs, manufacturing costs and rates of return to
weigh the practicality of the idea.
After much deliberation we rejected the first two ideas and decided to progress with the
third above-mentioned idea due to the following reasons
7.2.1 Rejection of the first idea: -
The first idea was to introduce video conversation in Sindh. Introduction of video
conversation was going to be a high budget developmental project. We were prepared to
make those expenses only if the rate of return was high. Video conversation requires
expensive mobiles with the cameras located on their front sides. The majority of the
population of Sindh comes under the lower middle class and is not very educated. The
main problem, which we would have faced in marketing that idea would have been the
higher costs involved for the customers. We didn’t think that the majority of our targeted
audience would have been fascinated by that idea so we unanimously rejected the first
7.2.2 Rejection of the 2nd idea: -
The idea of introducing a mobile T.V again called for expensive mobiles and a better-
educated audience. The major share of our targeted market had none of those two
attributes. Had we progressed with that idea, there was no way we could have recovered
the costs involved at a desired rate. These were the reasons why we rejected the 2nd idea
in the idea screening.
7.2.3 The accepted idea: -
Or group unanimously decided that WARID should go ahead with the 3rd idea due to the
• An opportunity to use a mobile and the connection services in Sindhi language will
surely fascinate the target market. The fact that Sindhis for the first time would be
allowed to use connection services such as SMS and all other mobile- functions in
their mother tongue would surely allow WARID to capture a huge market share.
• Nokia 1100 and 1110 are user-friendly mobiles and already have a good market
reputation. This factor would also play a big role in the sale of this package.
• As mentioned earlier, the competition for WARID is only MOBILINK and that too in
only some of the targeted cities. In those cities where WARID is the sole service
provider this service would surely allow WARID to sweep the market. Even in those
areas where MOBILINK is currently the market leader, this idea is going to help
WARID to capture a good part of the market
• The cost of the project is high but the expected rate of return is high enough to go
ahead with this project.
• The fact that this product is intended for the middle and the lower middle class of
Sindh makes the target market of this product huge. As this service is going to be
provided in the relatively cheaper mobiles of Nokia, it would be easier for the
targeted audience to afford this product.
Once this idea gets a go- ahead, the next hurdle would be to convince Nokia on this idea.
Since both these firms are highly reputed. This joint venture should benefit both of them
in terms of the market reputation. According to us, Nokia should agree to work with
WARID in this project because of the following reasons
• Nokia would only need to make the production expenditures. They won’t need to
make any marketing expanses. WARID would have to purchase the agreed quantity
of mobiles regardless of the market conditions.
• Nokia would thus be able to make a guaranteed profit.
• Nokia would be able to create goodwill among the customers in Sindh. This would
open a new market for the other mobiles of Nokia in Sindh.
• Even if the profits for Nokia are not going to be huge. This should be scene as a huge
marketing exercise by Nokia.
Should Nokia agree to supply the required no of mobiles, WARID should then precede
to the next step in the new product development i.e. the concept development.
7.3 CONCEPT DEVELOPMENT: -
Attractive ideas must be refined into testable product concepts. A product concept is an
elaborated version of the idea expressed in meaningful consumer terms.
In developing a product concept of our idea for WARID, we asked ourselves the
following two questions:
1. Who will use this package provided in Sindhi language?
2. What primary benefit would this product provide?
The answers to these questions provided us with the following product concept
“A mobile phone service in Sindhi language for those who face difficulty in using
mobile services provided in English”
This product concept would be used for the first time in the market and thus we would
face no initial competitors while introducing this service in the market. Thus this
innovation would be utilized in communicating and promoting this concept to the Sindhi
7.3.1 CONCEPT TESTING: -
In this part of the new product development firms test their product concepts. There are
two main methods to test the product concepts.
1. By conducting a survey to check the consumer appeal of the product concept.
2. By performing the conjoint analysis.
Conjoint analysis is used to check consumer preferences for alternative product concepts.
I n this method the utility levels, which a consumer attaches to varying levels of the
attributes are checked.
Keeping these two methods in mind we decided that a survey would be a better method
for WARID to check their product concept. The reason being that there are minimal
hypothetical differences, which can be, provided to the consumers if they use the conjoint
In their survey they should ask the people about the need level, perceived value, gap level
in the utility between this service and other services and the purchasing intention of the
customers. If about 50% of the surveyed people answer that they would definitely buy
this package then WARID should go ahead with this project and go one step further in
their new product development program, which is devising the marketing strategy for the
7.4 MARKETING STRATEGY: -
We devised a preliminary marketing strategy in the following three steps
7.4.1 TARGET MARKET: -
The target market for this product would be the same as explained earlier in this report.
In simple words it would be every Sindhi who has a difficulty in using the mobile
services in English. As mentioned earlier, this package would be targeting the middle and
the lower middle class. In the first year WARID should be aiming to capture at least 15%
of the target market with an aim to recover the cost of this project in the first year. In the
2nd year WARID should be aiming to make a planned profit of Rs.10 m.
7.5 SETTING THE PRICE: -
Setting the price would perhaps be the most delicate part of this project. A firm must set
a price for the first time when it is entering in to a new geographical area. The firm must
decide where to position its product and quality. Our group proposes a 6- step method of
pricing for WARID. The details are as follows:
STEP-1: SELECTING THE PRICING OBJECTIVE: -
In case of this product WARID must decide where it wants to position this market
offering. A Company can pursue following five major objectives through pricing
2. Maximum current profit
3. Maximum market share
4. Maximum market skimming
5. Product-quality leadership.
After thorough analysis of all these five objectives we propose that WARID should
pursue the “maximum market share” objective.
MAXIMUM MARKET SHARE: -
In this strategy the companies set lower prices to win high market shares. WARID
should adopt this objective while launching the Sindhi language service because of the
• The Sindh market is highly price sensitive and a low price would stimulate market
• A low price would discourage the existing and the potential competitors
It is pertinent here to mention that “low –price” doesn’t mean that WARID would not get
adequate direct profits from this new product. Since this is a new product WARID would
automatically be able to sell it at an adequate profitable price while still positioning the
product as a low-priced one. We would like to stress that at present the connection of
WARID is available in only RS 200, which, means that WARID already doesn’t focus on
getting direct profits just from the sale of the connections. Even in this case, WARID
should not forget about the major portion of profits which, would still be coming from the
sales of prepaid cards and through calls received from other networks, even though the
direct profits from the sale of this package may be low.
STEP-2: DETERMINING DEMAND: -
Different prices lead to different levels of demands. In the normal case, demand and
price are inversely related. In this case, since it is a new product, the expected demand
can be gauged by conducting surveys etc.
PRICE SENSITIVITY: -
The first step in estimating demand is to understand what effects price sensitivity. Since
in this case the competition is low and this is a one- time purchase thus the price
sensitivity is low. The only factor which, WARID needs to consider is the income level
of the target market.
PRICE ELASTICITY: -
Price elasticity has larger effects on the customers, when a product is to be purchased
many times such as household products. In this case price elasticity is not going to be a
major factor. WARID must carefully set its price so that it may not need to alter the price
once it has been set.
STEP-3 ESTIMATING COSTS: -
For any price to be set suitably for a product, a company must effectively know the
costs involved in the production or acquisition of this product.
COSTS INVOLVED IN THIS PROJECT: -
Two types of costs are involved in this case:
1. Cost of acquiring the mobile sets from Nokia.
2. Costs involved in providing and maintaining the connection services
Only the first type of cost is special for this product, the connection and service costs
need not be applied to this project alone. The service would be the same, as WARID
would already be providing to the people of Sindh. Costing is very important for firms
who are involved in manufacturing; such firms need to know how the costs vary with
different levels of production.
In this particular case WARID should exactly know the expected sales of this package
and the sales needed to go into profit with this project. As WARID would have to buy the
agreed no of mobiles regardless of the market position, thus WARID needs to carefully
determine the no of packages it can sell easily. Only then WARID would be able to make
the overall cost of the project feasible. We propose that WARID should use target costing
in this new product.
TARGET COSTING: -
Using this method, before getting in to any formal contract with Nokia, WARID should
determine the price at which this package is going to sell. This assumed price would
allow WARID to deduct the desired profit margin (which we suggest should not be too
optimal) from this price and thus WARID would be able to calculate the target cost they
must achieve to make the project feasible. The objective should be to bring the final cost
projections into the target cost range. This project is unique in the senses that if the ratio
of profit from the direct sales were low even then WARID would be able to reach the
overall desired profit through prepaid cards etc.
STEP-4: ANALYSING COMPETITORS’ COSTS, PRICES, AND OFFERS: -
Since this is going to be a new product, thus it won’t have to face direct competition,
but WARID would need to be careful about the price of this package in relation with the
perceived value. We would again like to emphasize that the main motive behind this
product is to increase the customer base of WARID and not to get handsome direct
profits. The profits are automatically going to come through the after- connection sources
such as the sale of prepaid cards. If a reasonable price keeping in view the competitor
were set, WARID would be able to break the hold of MOBILINK with this package.
STEP-5 SELECTING A PRICING METHOD: -
The next step after determining the customers’ demand schedule, the cost function, and
competitors’ prices is the selection of a pricing method. It may be mentioned here that
selection of pricing method needs major attention when it comes to companies who are in
the business of selling tangible products which, need constant buying and loyal
customers. What WARID needs is only to charge a fair price, keeping in mind the target
market, which is the low income group of Sindh.
Following are some of the common methods used for pricing
1. MARKUP PRICING: -
A standard markup is added to the product’s cost without heeding to the current
demand, perceived value and competition. The greater the profits required the greater
becomes the markup cost.
2. PERCEIVED-VALUE PRICING: -
Price is charged keeping in mind the perceived value of the product in the customers’
views. For price buyers, companies offer stripped-down products and reduced services
and lower prices are charged. For value buyers, companies try to provide new value and
aggressively reaffirm their value, comparatively higher prices are charged. For loyal
buyers companies invest in relationship building and customer intimacy.
3. VALUE PRICING: -
Companies using this method try to win loyal customers by charging a fairly low price
for high-quality offering.
4. GOING- RATE PRICING: -
In this method firms base their price largely on the competitors’ prices.
5. AUCTION-TYPE PRICING: -
This method is growing popular with the growth of Internet. This method isn’t popular
in Pakistan yet.
6. GROUP PRICING: -
The Internet is facilitating a method whereby consumers and business buyers can join
groups to buy at a lower price. The larger the group of buyers, the lower the prices. The
customers in Pakistan do not use this method.
7. TARGET-RETURN PRICING: -
After thorough analysis of all the pricing methods, we believe that WARID should
follow this method for the pricing of this package in Sindh. As in the “costing” part of
the project we have already proposed that WARID should use “target costing” thus it
would be easy for WARID to price this package to meet the targeted return on
investment. Again the overall return on investment can’t be calculated by taking the
direct profits alone, but WARID can set a reasonable direct rate of return which should
not be more than 5%. We propose a minute direct rate of return to win maximum
customers, which would automatically make the overall return on investment higher.
STEP-6: SELECTING THE FINAL PRICE: -
This is the final step of our proposed pricing mechanism for WARID. This step calls for
WARID to set a final price for this new collaboration of Nokia and WARID. As in the
current market a Nokia 1100 is available for RS 2500 and a WARID connection for RS
200. The customers would be aware of their collective price. In this case the added value
of “Sindhi language services” is provided. WARID carefully needs to set a price, which
meets the targeted return on investment and the perceived value of this added function as
viewed by the target market. If both these factors were viewed carefully, WARID would
be able to set a final price, which is consistent with both the customers and the company.
The price at which Nokia would sell the mobiles to WARID would be the biggest factor
in the overall price of the package. According to us the price of this package should not
exceed RS 2999. But this would only be possible if WARID manages to get the mobiles
at about RS 2550. To achieve that WARID would have to convince Nokia about the
market benefits of this joint venture.
7.6 BUSINESS ANALYSIS: -
After developing the product concept and the marketing strategy, we next proceeded to
analyze our proposal’s business attractiveness for WARID. In this part the product’s
estimated sales, costs and profits were calculated.
7.6.1 ESTIMATING COSTS AND PROFITS: -
The sales generated through this product would be measured through the no of
customers who will buy these packages. As this is a one-time purchased product, so the
sales would rise at the beginning, peak and would decline later.
To evaluate the merit of this service, we decided that WARID should use the following
7.6.2 BREAK-EVEN ANALYSIS APPROACH: -
Using this approach WARID can estimate the no of sold packages to break-even with
the cost structure. This analysis can be performed by using the package with Nokia 1100.
Following should be the core of this analysis:
• The total cost of this service should be estimated.
• One sold package with Nokia 1100 should not give WARID an approximate direct
profit of less than Rs 100. If the ideal pricing is achieved this profit can increase.
• Not more than 0.1 million such packages should be required to break-even with the
costs. This estimation includes the indirect profits (generated from the sales of
prepaid cards, post paid connections and the calls received from the other networks).
This analysis suggests that, to be able to break-even in one year WARID would need to
sell 0.1 million packages. It means that each city would need to sell 10,000 packages. It is
a daunting task but not an impossible one. We are assured that with proper marketing
WARID would get close to achieving this task.
7.7 PRODUCT DEVELOPMENT: -
In this part WARID should perform the following activities:
ALPHA TESTING; -
We recommend that WARID should operate these mobiles and check their compatibility
with WARID’S services, if the functional efficiency is up to the desired standards then
they should proceeded to beta testing.
BETA TESTING: -
In this step they should give a sample of mobiles along with the connections to a
selected group of consumers who are deemed to be the early adopters. They should get
these users to report their liking and disliking about this package. If the consumers are
satisfied with this package and they are happy to be able to use all mobile accessories,
send messages and dial numbers in there own language then WARID should precede to
the next step i.e. the market testing.
7.8 MARKET TESTING: -
Once the management is satisfied with the functional performance of the product, the
product is ready to be dressed up with a brand name and packaging and put into a market
test. The amount of market testing is influenced by the investment costs and risk on one
hand, and the time pressure and research cost on the other. There are many types of
market testing such as sales-wave research method, simulated test marketing and
controlled test marketing but we advise that WARID should use the following method
for market testing:
7.8.1 TEST MARKETS: -
WARID should chose three representative cities, which in our view are Jaccobabad,
Thatta and Sanghar. WARID should carry a full advertising and promotional campaign in
these markets. This testing should have the following attributes:
• 3 test cities should be used. Jaccobabad represents the most developed out of the 10
cities. Thatta and Sanghar represents the under developed cities with a major portion
of population which, is illiterate when it comes to understand English.
• Tests should last not more than 4 months
• If the results are good in the test markets then WARID should immediately promote
this new product in the entire target market.
7.9 COMMERCIALIZATION: -
The lone major cost, which WARID is going to face while commercializing this
product, will be the marketing costs. Following are some of the factors which, are going
to influence commercializing this product:
7.9.1 WHEN: -
The question of “when” arises when a company learns that some competitor is also
nearing the end of its development work on the same kind of product. In this case
WARID is going to be the first entry in the market with this product, as there are little
chances that any other company can come up with the same idea. Thus WARID would
enjoy the “first mover advantage.” That is gaining reputational leadership.
7.9.2 WHERE (GEOGRAPHIC STRATEGY): -
The commercialization should be done in all the ten cities. The reason being that the
major portion of Sindh should be encouraged at once to communicate in Sindhi language
with the help of this service. The major factor in the success of this package is going to
be the speed in which people adopt this product, because the larger the share of the
population holding these mobiles the larger would be the chances of further sales. Thus it
is important for WARID to go about this campaign aggressively in all the ten cities.
7.9.3 TO WHOM: -
This service doesn’t require WARID to get into the details of early adopters or further
segment its market on the basis of adoption. This is a simple and easy to understand
service. And as indicated by the surveys, this service is the need of the hour for the
Sindhi people so WARID can make use of the old mass marketing approach in this
7.9.4 BRANDING: -
Brand is a name, term, sign, symbol, or design, or a combination of them, intended to
identify the goods or services of one seller or group of sellers to differentiate from those
of competitors. A brand is much more than a name, logo or a symbol. A brand such as
WARID promise to deliver a specific set of features, benefits, and services consistently
to the buyers.
220.127.116.11 BRAND BONDING: -
Brand bonding occurs when customers experience the company as delivering on its
benefit promise. Since the people of Sindh would not have experienced the services of
WARID thus there would be no brand bonding in this case. But WARID would be at an
advantage as people of Sindh would already know that a company by the name of
WARID exists in the market due to the frequent ads of WARID that are shown on PTV.
18.104.22.168 PROPOSED BRANDING STRATEGY FOR WARID: -
Since WARID is an established brand in the market of Pakistan thus it doesn’t faces any
dilemmas such as the brand-name decision or to devise a completely new brand strategy
for this new product. After thorough analysis of the branding requirements of this product
we propose that WARID should use the following strategy in this case.
22.214.171.124 CO- BRANDING STRATEGY: -
Since this product is going to be a result of the mutual collaboration of WARID and
Nokia thus we suggest that WARID should use the new marketing phenomenon called
CO-BRANDING. As in this case both of these companies are highly reputed thus this
joint venture co-branding would definitely benefit both these companies. The people of
Sindh would be able to relate between WARID and Nokia. Not only would this co-
branding help the sales of this joint venture, but also when it would come to the future
purchases of the handsets and the connections the people would be inclined to use the
combination of WARID and Nokia. This factor should allow WARID and Nokia to co-
brand this product effectively. Since this is going to be a joint venture of WARID and
Nokia, we propose that this package be launched with a new brand named WAKIA.
This name is suggested because of the following reasons.
• This name comes from the combining the first two alphabets of WARID and the last
three of Nokia. This factor would help the consumers to relate to this package in a
• This name is easy to remember.
• Both WARID and Nokia would get a mutual reputation in the Sindhi market.
8 .PROMOTIONAL MIX AND BUDGTING
Rigorous promotion will be important for WARID in this case. For this purpose WARID
should allocate a good amount of money to start the promotional. So a certain amount of
money will be allocated to the precise sectors. The purpose of these sectors will be to
aware people about through different mediums. These mediums are of certain type but
some of them will be adopted. So keeping all these things in mind a feasibility report will
be made and a fixed budget will be allotted to carry on the campaign.
8.1 THE PROMOTION BUDGET
Establishing promotion budget is extremely challenging because management lacks
reliable standards to determine how much to spend altogether on advertising and public
relation, these two promotional means will be utilized in promoting the project. It’s also a
difficult time for management to allocate a total budget to each mix component.
Promotional activities generally are budgeted as current operating expenses, implying
that their benefits are made up immediately. However it’s been suggested that
advertisement should be thought of as a capital investment, even if it is treated as
8.2 BUYER READINESS STAGE: -
Since this is going to be a new product for the people of Sindh thus an overwhelming
share of the population would be unaware about this package. This factor would play a
huge role in the advertising campaign for this package. Keeping this factor in mind
WARID should design a simple awareness-building advertising campaign using a simple
message. WARID should try to win the votes of the large population of Sindh who
would be positive about using a mobile for the first time in their own language. WARID
can even win those customers who are indifferent about the language through the low
pricing of this package.
8.3 PROMOTION METHOD
There are different types of promotional methods but the WARID should use
• Public relation
WARID should use electronic media and print media to promote their project. The most
familiar outlets for ads are broadcast (TV and Radio) and print media (newspaper and
8.3.2 ELECTRONIC MEDIA:
For the promotion of the project electronic media will be used in which ads will be made
for PTV and PTV- (NATIONAL). Simple ads should be designed to give people
awareness about the package. Rest the message will be conveyed on Radio to, the people
who listen to Sindhi radio channel will get to know about the package very easily. As
PTV is watched mostly in rural areas. So it will be a better chance for our promotion to
involve many people as possible.
A proper ad will be given to the people to let them know about the package. A proper and
a meaning-full message should be shown on the Sindhi newspaper so that the targeted
audience can get to know precisely how they would get facilitated by using this package.
A small description should be written about how to communicate and how to use it.
8.4 PUBLIC RELATION:
Its encompasses a wide variety of communication efforts to contribute to generally
favorable attitudes and opinions toward an organization and its product. Unlike most
advertising and personal selling, it does not include a specific sales manages. So the
management of WARID can meet different people of Sindh from landlord to workers,
they will try to convince them about the project will conduct a certain seminars in which
public awareness will be given that now all things are in their hands, their national
language is their mobile communication. It will ease problems of many people.
8.5 PROMOTION OBJECTIVE
A target audience can be in any six stages of buying readiness. These stages awareness,
knowledge, liking, preference, conviction and purchase.
At the awareness stage the seller’s task is to let the buyer know that the product exists.
Here the objective is to build a familiarity with the product name. As WARID has got a
name so awareness isn’t the matter but many people don’t know which telecom is the
best so a little awareness should be created among Sindhi people to let them know about
the WARID’S reputation overall.
Knowledge gets beyond awareness to leaning about product features. A manual will be
given to the people to let them know how this package works. It will be written in
English, Urdu and Sindhi. Through reading a manual a person will know how this thing
Liking refers to how the market feels about the product Promotion can be used to
knowledgeable audience from being indifferent to being liking the product. A common
technique is to assure the item with an attractive symbol or person. Like in the Ads they
can use Shabir Jan a prominent symbol among Sindhi people and a well-known actor.
Purchase can de delayed or postponed indefinitely, even for customers who are
convinced to buy the product. The inhibitor might be a situational factor such as not
having enough money at the moment or a natural resistance to change. Action may be
triggered through a temporary price reduction or a natural resistance to change.
9 .The Product Life Cycle
The product life cycle of a product passes through various stages satisfying
different needs of the customers. First of all let us explain the different product levels
of the new package WAKIA.
9.1 Five Product Levels
9.1.1 Core Benefits
This is the fundamental level of which the product satisfies the need for lots of benefits at
low prices. The new package Wakia enables the customers to basically buy a simple
cheap and a low priced communication package in Sindhi, thus making them connected
with others. Wakia is mainly giving our customers a range of benefits at very reasonable
9.1.2 Basic Product
To turn the core ideas in to basic product, Wakia is introduced in the market. This
essential product includes a range of benefits from basic phone calls, SMS etc.
9.1.3 Expected Product
As WARID is already a big player in the communication sector, the market has high
expectations from our new product.
Keeping the expectations of the public in mind, a package is introduced with a high
quality-low priced characteristic aimed at low-income members and mostly the youth of
9.1.4 Augmented Product
WAROD’S main competition is at this level of the product level, which is the augmented
level. To exceed consumer’s expectation by focusing on the young members of the
society and to take firm hold of our already established markets, the package is made
unique in a sense, by introducing new concept of Sindhi language service, packages for
different sector of people in these rural areas of SINDH
9.1.5 Potential Product
The product surely must have some deficiencies and problems, which must be looked at
from the valuable feedback of our customers, and have to be addressed by the research
and development department if there needs to be an update of our current product.
9.2 Consumer Good Classification
9.2.1 WAKIA A SPECIALITY GOOD
The package classifies into a Specialty good, because the consumer has a variety of
options for the purchase from our competition, in which the product quality, price, style
and suitability will play an important role in determining which product the consumer
The reason for the product being classified into a specialty good is because it has unique
characteristics which support both low income groups and high income group people,
while utilizing their package to its maximum benefit.
This product will have more purchase locations, with the product being available only at
WARID’S franchises thus creating unique brand identification for the product.
The consumer will find our prices the very attractive as we provide the highest benefits in
the market at very low prices, including modern new facilities for the users.
The consumer can gather information of our product from the various sources of
advertisements. And almost all-possible sources of media will have advertisements
relating WARID’S new package.
The introduction of the new package is for the whole population of the rural areas of
Sindh. The new package called Wakia will attract the customers who are interested in
deals like low SMS rates, short talk-times, and for those people who aren’t comfortable
with English WARID is collaborating with Nokia to provide such cell phones which
contain all the menus and every service in Sindhi
The introduction of the new package is for the whole population of the rural areas of
Sindh. The new package called Wakia will attract the customers, who want low rates
good quality service and other features at comparably low prices. The market will be
divided according to the demographic structure of the population, specifically focusing
on the age, occupation, family size and low-income groups.
A brief outline about the ideal pricing structure is given in the above written parts of
this report. If these ideal low pricing targets were achieved than WARID would be at a
An extensive promotion campaign will be launched targeting mainly all the sources of
possible media accessible to these rural areas of Sindh, which will include television,
radio, billboards, newspapers, and advertisements in Sindhi language to make the
promotion communicate in a better way
9.3 Product Life Cycle
In this stage, the product Wakia will have low sales and high cost. Initially the profit will
be low or negative, so the main objective will be to give good coverage, low call rates,
low SMS rates, to the customers who will use the base level and excellent service to
those who will use all the other features of the package. The marketing strategy, which
will be used, is rapid skimming strategy because cost of the product will be high and
promotion activities will be at an increased level.
In this stage of the life cycle, the focus shall be on promoting the various high quality
features of our package, thus attracting customers from the competition, which will make
profits to rise higher.
The strategies needed to maintain our aim relating to pricing, promotion, distribution, and
other activities in order to maintain a steady profit stream.
The R&D department will continually try to improve and update the package, and change
the pricing if needed.
The maturity product can be applied to defensive strategies, with market modification,
product modification, or the combination of both.
When eventually the package Wakia wears out, and starts the receding process, change
will be ensured of the whole product with taking considerations of all the aspects of our
strategies, including the basic P’s.