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22468143-Wateen-Wimax

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Executive Summary:

WiMAX is a Worldwide Interoperability of Microwave Access. WiMAX is described in
IEEE 802.16e Wireless Metropolitan Area Network (MAN) standard which has recently
been introduced in Pakistan by AD consortium Wateen. It is expected that WiMAX
compliant systems will provide fixed wireless alternative to conventional DSL and Cable
Internet. Wateen Telecom is using Motorola's WiMAX technology to provide wireless
fixed broadband data services for residential and corporate use. The company is using
WIMAX as a cost effective and fast-to-deploy broadband solution, as part of its strategy
to create a world-class communications network in Pakistan. It brings you the ability to
communicate and connect via voice with your family, clients and business partners
seamlessly. But Wateen Wimax faced criticism by the customers due to some flaws in
their technology and services. They couldn’t get that much appreciation in the market as
the company was expecting. People were unaware of the technology that Wateen
launched. The operation and installation services were not provided properly and people
were dissatisfied due to lack of knowledge about product, operation and ineffective
advantages they expected to get. The product price was high as they had high security
charges.




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Table of Contents:


About The Report……………………………………………………………….……4
Corporate History…………………………………………………………………….4
Mission Statement……………………………………………………………………4
Wateen Telecom……………………………………………………………………...5
Wimax………………………………………………………………………………...5
Working of Wimax…………………………………………………………………...6
Functions of Wimax…………………………………………………………………..7
Wimax in Pakistan ……………………………………………………………………7
Threat of New Entrants………………………………………………………………..8
Product Life Cycle ……………………………………………………………….…...8
Product strategies……………………………………………………………………...9
Promotion strategies…………………………………………………………………..10
Pricing Strategies……………………………………………………………………..12
Placement Strategies………………………………………………………………….13
SWOT Analysis………………………………………………………………………14
Conclusion……………………………………………………………………………14
References…………………………………………………………………………….15




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About The Report:
 In this report we are focusing on the product information, how the Wimax technology
has revolutionized the world and how particularly Wateen Wimax is working in Pakistan.
The flaws in marketing strategies that Wateen adopted when their product was launched
and the changes later on they made in their strategies to get a better market response.




Corporate History:
Wateen Telecom is a part of Warid Telecom International LLC, an Abu Dhabi Group
company led by His Highness Sheikh Nahayan Mabarak Al Nahayan. The group is one
of the largest in the Middle East and has diversified business interests comprising oil and
gas exploration, hospitality services, communications, banking, financial services,
automobile industry and property development. The group has large investments and a
strong presence in Pakistan
Owing to the significant patronage from the Abu Dhabi Group, Wateen Telecom, as part
of the Warid Telecom International Group Company, benefits from an eminent portfolio
of distinguished shareholders of Warid Telecom International L.L.C.




Mission Statement:

       To provide affordable communication services that meets and exceeds customers'
       requirements
      To deliver high-quality, flexible and are innovative solutions that cost effective
       and conducive
      To provide complete customer satisfaction on time, every time




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Wateen Telecom:
Wateen Pakistan’s largest communication company in the private sector has become the
instrumental catalyst that has radically moved the country forward into a digital
revolution with its ability to seamlessly connect and enable smarter, faster, cost effective
and flexible solution to reach its valued customers. Wateen offers a complete range of
carriers’ class telecom and multimedia services like fixed wireless and mobile telephony,
“always-on” broad band for data, internet and TV/multimedia along with the host of other
value added services and applications to set the standards for a new era of
communications and entertainment in Pakistan. Wateen’s focus has been on bringing in
cutting edge technologies to better provide youth with the tools they need to progress
providing high speed connectivity, and features. Rich solutions is the Wateen’s way of
not just matching the fast growing needs, but also challenging the true potential growth
that technology can offer.


Wimax:
WiMAX, an approximate acronym of Worldwide Interoperability for Microwave
Access, is a telecommunications technology that provides for the wireless transmission of
data using a variety of transmission modes, from point-to-point links to full mobile
cellular-type access. The technology provides up to 70 Mb/sec symmetric broadband
speeds without the need for cables. The technology is based on the IEEE 802.16 standard
also called Wireless MAN. The name "WiMAX" was created by the WiMAX Forum,
which was formed in June 2001 to promote conformity and interoperability of the
standard. The forum describes WiMAX as "a standards-based technology enabling the
delivery of last mile wireless broadband access as an alternative to cable and DSL"(and
also to High Speed Packet Access).
 Wimax is always on high speed wireless connection which gives you the ability to
access your favorite websites faster and lets you experience the web at its maximum
potential. With internet speed ranging from 128kbps to 2Mbps surfing internet is whole
new experience with increased speed improved productivity and substantial cost saving.
(www.wateen.com)



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Working Of Wimax:
.




                                  Figure 1


    In WiMax first the ISP would have their T3 or higher access. The ISP would then use
line of sight antennas (Bridges) to connect to towers that would distribute the non line of
sight signal to (MAN) residential/business clients. WiMax line of sight antennas operate
at a higher Frequency up to 66mhz. Distribution antennas do not have to be in the line of
sight with their clients. WiMax can operate right next to cell phone towers with no
interference. WiMax networks are similar to Wifi in deployment. The Wimax Base
station/Tower will beam a signal to a WiMax Receiver. Similar to a WiFi access point
sending a signal to a laptop.




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Functions of Wimax:
       Wimax internet connections can be accessed at any distance.
       The speed of Wimax is quite high and customers enjoy using it.
       The WiMax system provides facilities of internet access through WiMax tower
        which is able to cover the larger area in the range of 8 thousand square kilometer.
       WiMax provides connection. In the line-of sight there is a fixed antenna used at
        home top or office top to connect the network. The line-of-sight is static and
        connectivity is good. It gives you faster speed with less error.
       Wimax also provides connection in non-line-of-sight. In this case you need
        small antenna in the computer to get the connection remotely.



Wimax in Pakistan:

 Wateen was launched in Pakistan on 16th December 2007. Currently, Pakistan has the
largest fully functional WiMAX network in the world. Wateen Telecom installed the
network with an initial rollout in seventeen cities throughout Pakistan using Motorola
hardware technology to provide wireless fixed broadband data services for residential and
corporate use. Wateen is also planning to expand its network and eventually cover 71
cities in Pakistan.

 Wateen WiMAX has been optimized to deliver multimedia, Internet, and voice traffic
over wireless medium. Wateen WiMAX has thus enables the delivery of different types
of content and applications through a single connection subscribers can use advanced
telephony, surf the internet at super fast speed, make video calls and watch IP-TV
through the comfort and ease affordable by a single connection. With Wateen’s WiMAX
network you get access to

       Broadband internet services speed up to 2Mbps
       Telephony services with a host of value added features
       Secure high-speed data networks that are scalable and optimized as per customer
        requirements


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Threat of New Entrants:

Wateen was launched in Pakistan on 16th December 2007. At that time it was the only
company offering Wimax so it enjoyed being a monopoly. Being the monopolist was the
core competency of the company but Wateen did not take advantage of this position.
They had major flaws in their pricing, product and promotion strategies. Now Mobilink
and PTCL (smart TV) have emerged as competitors in this market.

 PTCL Smart Line' is a fixed line service that allows customer the experience of
telephony, Broadband and multi-channel TV service all at the same time, on the same
line. Therefore no additional cable is required into the customer's premises to receive
cable TV / Multi channel TV.

 Mobilink is a subsidiary of Orascom Telecom and Pakistan’s largest mobile service
provider; they officially launched their Wimax service by the name of Mobilink Infinity.
Because Mobilink has already got an established network and a huge existing customer
base they would have no trouble competing with Wateen Telecom. Moreover they are
charging quite reasonable prices and providing good customer service so it is surely a
wake up call for Wateen because it may not see the light of day in the rest of the country.


Product Life Cycle:




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. Wateen Wimax is currently in the introduction stage. Sales growth tends to be low at
this stage. Promotional expenditures are at their highest ratio to sales as Product-
Awareness Advertising is done. In case of Wateen Wimax huge advertisement was done
even before there product was developed and when they finally launched it, it was not at
all like the image they had made in the minds of consumers. This brought a critically
negative impact on the brand reputation. And the customer confidence was also shattered.

 Wateen was the first company to launch Wimax. It had a very good chance to capture
the market as it had no competitors at the time but it failed due to the strategic mistakes it
made. Currently it is trying to cope with these issues with the help of Warid and Bank
Alfalah. (Keller, marketing management)


 Product Strategies:

The target customers of Wateen are

      home users,
      business users
      carriers & operators

However their main revenue comes from business users because due to their high costs
home users do not prefer it so they are targeting business users more than the others by
providing advanced technology that is necessary for business sector.

Wimax failed due to the following reasons:
   1. Wimax was unable to capture signals in areas surrounded by trees and huge
       buildings.
   2. Instead of focusing on the technology they were focusing on market share
   3. Their sales representatives did not guide the buyers properly about the services,
       whenever a customer asked any question related to their product and WiMAX
       technology they failed to satisfy the ambiguities of the customers.
   4. The cable service that they provided was not up to the mark. There were very few
       channels in it so generally people preferred their local cables.

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Realizing all these facts they now
      1. Have improved their customer service to some extent.
      2. The signal problem has also been resolved.
      3. People are getting aware of new technology wimax
Wateen needs to work over these flaws in order to satisfy their target customers.


Promotion Strategies:

Promotion is a very important element of marketing mix. Wimax promotes its products
by:

ADVERTISING:

             Bill boards in busy localities.
             Newspaper ads
             Below the line Advertisement

 Wimax is a new technology in the world and it has yet to prove in the market. Moreover
it has many issues regarding product awareness, delivery and its usage since it has been
launched. Marketing communication and advertising is considered as strategic decision
during the launch of the product and it should be handled with care. It brings a negative
impact on brand reputation if the product or services are launched aggressively by
spending and putting too much effort in heavy advertisements without product or services
placed in the market. It is just like misleading the customers. Such campaign brings
adverse effect on brand image instead of building it. The product like WiMax which is
still in the introductory stage has to struggle a lot in getting a market share Such mistake
at the launch can severely disrupt the company’s and brand’s image within early adaptors
of the product.

 Wateen has placed two ads in print media. One was related to the product launch
aggressively offered all the products in line with core focus on triple play. The new

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website of Wateen is far better than the previous one because it offers product &
marketing information in detail which can help customers to know about Wateen product
better. However on practically calling the Toll Free number on next day of advertisement,
one finds a telemarketer with inadequate information on all the products and delivery
time of 2 months. Prospects are being asked to register online and are being told that
sales team will contact them in 6 to 8 weeks.

 While doing advertisement during product launch, companies must behave strategically
realistic when the market is competitive and buyers have become knowledgeable. Wateen
does have some exciting projects and plans ahead and they are acting quite aggressively
but enterprises like Wateen Telecom, must advertise product/service offering only when
the product is ready to deliver instead of advertising plans on paper.
 The second advertisement from the campaign was based on good advertising strategy. It
focused on corporate image of company and the feeling that there is a new entrant who
will be offering value services in Telecom Sector. The services that is new for the
customers in Pakistan. The advertisement was not offering anything in particular and
hence is the right Pre-Launch Ad before products are practically ready for delivery.
Wateen also has successfully managed to bring certain corporate giants on board
including Telenor, Bank of Punjab, Warid, Callmate etc and these names were illustrated
on the advertisement, thus strengthening the company’s image as promising and
trustworthy player.




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Pricing Strategies:
Wateen provides its home users with the following packages.




                            Figure 2
(http://telecompk.net/2007/12/15/wateen-announces-wimax-tariffs)
 The pricing strategies of Wateen Wimax were not very good. They were charging
Rs.8000 as their upfront payment which was too high. Potential customers were not
willing to pay such a high price for a new product. Most people thought of it as a sly
marketing plan, which is usually followed by most companies; they charge you high fees
initially so that even if a user isn’t satisfied with the service, he’ll think thrice before
switching to another service.
Wateen soon recognized the problems with their pricing strategies by the poor market
response. They reconsidered their prices and tried to lower them to match the customer
expectations but they are still not low enough to gain positive market response.




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Placement Strategies:
Wateen is located in 17 cities throughout Pakistan. The phases have been covered with a
total route of 350 plus kilometers.
First Phase                    Lahore, Karachi, Islamabad, Faisalabad
Second Phase Multan, Sahiwal, Gujranwala, Sukkar, Hyderabad, Quetta, Abbotabad,
                               Jehlum, Peshawar, D.I. Khan, Sialkot, Gujrat and Sargodha.


  1800
           1611
  1600

  1400

  1200

  1000
                  852
   800

   600
                                                                                                            North
   400                   294
                               220
   200                               129 112
                                               76   70    63    47   40    35      33   32   23   21   20
       0




                                 Figure 3: City wise sales in North

  1200
                  1064

  1000



   800



   600                                                                                       South



   400



   200

                                       40                27                 6
     0
              Karachi                Quetta         Hyderabad             Sukker



                         Figure 4: City wise sales in South



SWOT Analysis:
Strengths
          It has a low cost potential to deploy and operate, especially for rural areas.
          It is based on proven OFDM techniques.
          Support high bandwidth and QoS guarantee mechanism for low latency IP
           application.

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Weaknesses
       There are a lot of security issues
       Is not up to the customer expectations
       The revenues are immature
    .
Opportunities
          Underserved DSL kind network infrastructure or no broadband access at all.
          Positive attitude from government and local providers.
          In some countries, 3G licenses are still not issued.
 Threats
          DSL technologies widely deployed in urban and suburban areas, also higher
        Initial cost of WiMAX deployment than DSL and Cable access mode.
          Restricted and immature regulation and policy environment.
          Low penetration of population and low ARPU.


Conclusion:
 For a company to be successful it must follow the marketing mix strategies in an
effective manner. However Wimax technology introduced by Wateen was not a
successful launch. Being the first such technology it should have been able to capture a
large market but due to its poor marketing strategies and services they failed. Currently
they have resolved the flaws in their product to a great extent by revising their marketing
strategies and taking consumers preferences into consideration. Its competitors are
emerging in the market but by taking advantage of their strong financial background they
can still capture a large market share.
 WiMAX service providers believe that if PTA allows them to give WiMAX access to
mobile users which will lead to 4G then the communication among the general public or
across the globe will become cheaper then ever in Pakistan but it would effect the
business of other mobile networks. However in the near future more international
ventures are expected to emerge in WiMAX market of Pakistan, then PTA will surely
consider them to give mobility services


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References:


     http://www.wateen.com/


     http://greenwhite.org/2007/09/07/wateen-fumbles-with-wimax-launch-campaign/


     http://greenwhite.org/category/marketing-adv/


     http://telecompk.net/2007/08/31/wateen%E2%80%99s-strategic-mistake-in-
      product-launch/


     http://telecompk.net/2007/12/15/wateen-announces-wimax-tariffs

     http://www.wikipedia.org/


     http://techlahore.files.wordpress.com/2007/12/wimax.gif




  Books: Marketing Management by Philip Kotler and Kevin Keller




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