Strategic Marketing Project

Telenor Pakistan
Syed Ali Ashiq Kirmani Roll # 01
M. Qasim Abu Bakar Roll # 54
Adnan Amjad Roll # 56
Syed Athar Shafiq Roll # 38
Husnain Sadiq Roll # 46
Saima Imdad Roll # 50
Naeem Akhtar Roll # 80

2008
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Abstract

Telecom Industry is experiencing a fast pace in context of new launchings and introduction of
exciting technologies. In this project, we analyzed all components strategically and critically
keeping the competitors in the mind and other business environments and also forecast the
futuristic approach of Telenor Pakistan.

As Telenor’s strategy is to be a market oriented firm to survive in the market, so they need the
regulate and change the policies accordingly.

Then, the certain segments through which Telenor is setting its target audience is briefly
discussed in terms of demographically, psycho graphically and geographically.

Through its effective Research and development in certain areas, its market growth is increasing
dramatically as it is effectively targeting customers of all areas.

They are also using such packages with efficient pricing and through user friendly glamorous
advertisements that attract the customers to increase its over all sales and services.

This is all done through effective distribution channels and value chains that creates a sense of
easy availability to the customers.

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Table of Contents
Abstract......................................................................................................... .............2
Corporate Strategy....................................................................................... ..............6
Goal & Vision....................................................................................... ....................6
Strategies: .............................................................................................. ................6
Business Strategy.............................................................................................. .........7
Believe in following strategies:................................................................................8
Social Responsibility................................................................................ .............8
Supply Chain Management.................................................................................. .8
Collaboration....................................................................................... .................9
Training and Research..........................................................................................9
Managing certain Operations...............................................................................9
Business Objectives......................................................................................... ......10
Market Orientation................................................................................................... .11
Market Driven Strategy............................................................................................11
Market Orientation:...............................................................................................11
Customer focus..................................................................................................11
Competitor intelligence......................................................................................12
Cross-functional coordination.............................................................................14
Environmental Influences...................................................................................15
Distinctive Capabilities..........................................................................................15
Superior to the competition.............................................................................. ..15
Difficult to duplicate...........................................................................................16
Applicable to multiple competitive situations.....................................................16
Value and capabilities........................................................................................ .16
Customer values/ Match the capabilities...............................................................16
Superior Performance................................................................................ ............17
Market Segmentation & Targeting ...........................................................................17

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Market Segmentation and Positioning......................................................................17
Market Segmentation & Product Positioning Analysis............................................18
Market Positioning............................................................................. .......................18
Companies positioning against competition..........................................................18
Segmentation Strategy............................................................................................. 19
Which Market to Segment.....................................................................................19
Geographic (Area wise).........................................................................................19
Demographic (Life style).......................................................................................19
Psycho graphically (Personality)............................................................................22
Product strategy..................................................................................... ..................24
Five Product Levels: ................................................................................ ..............24
Add a new product strategy..................................................................................25
Cost reduction strategy.........................................................................................25
Product improvement strategy..............................................................................25
Marketing strategy alteration................................................................................26
Product Elimination strategy :..............................................................................26
Mobile subscriber forecast................................................................................. .26
Product forcasting..............................................................................................27
Cycle (Telecommunication Industry)...................................................................27
Product plan.............................................................................. .........................28
PRODUCT PLANNING..........................................................................................29
Pricing strategy:....................................................................................................... .30
Prepaid tariff comparison of Telenor-UFone-Mobilink (Per mint).........................33
PRICING PLANNING.................................................................................. ..............33
Promotion strategy................................................................................... ................34
Advertising:................................................................................. ..........................35
Sales promotion:...................................................................................................37
Publicity (indirect channel)....................................................................................37
Distribution strategy............................................................................................. ....38
Customer characteristics.............................................................................. .........38
Determinants..................................................................................................... ....38

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Distribution centers of Telenor...............................................................................39
Distribution Structure of the Cellular Sector:.........................................................40
DISTRIBUTION PLANNING...................................................................................42
REPOSITIONING PLANNING.................................................................................42
Conclusion:.................................................................................................. .............43
Works Cited.................................................................................... ..........................43

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Corporate Strategy

Goal & Vision

Telenor's primary goal is to create greater value for our shareholders, customers, employees and
partners, and for society in general. We strive to be a driving force in creating, simplifying and
introducing communication and content solutions to the marketplace.

Strategies:

Telenor's corporate strategy is to focus on to increase in number of subscriber through out the
world and to increase overall profitability of the firm by combining “Group industrialisation with
local drive and responsiveness”. And also focus to develop our leading position in certain regions
with a broad range of communication services (www.telenor.com, 2008)

This strategy implies the following focus areas:

 To strengthen our position as an international mobile operator

We intend to continue to strengthen our mobile industrialization mobile operations by
obtaining control over selected mobile companies. Control is essential for us to benefit
from cross-borders synergies, such as scale in procurement, to develop new services and
implement best practices, to improve operational efficiency and to increase our overall
profitability. We intend to manage our non-strategic investments as financial investments
and to exit from international mobile operations where we cannot obtain control over
time.
 To strengthen our position in certain regions
We intend to continue to streamline our mobile and fixed operations in the Nordic region
by exploiting the benefits resulting from economies of scale and cross-border synergies.
We believe our Nordic presence will improve support to our customers by building upon
our expertise in, and our range of, both mobile and fixed services.

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 Global coordination achieving local competitiveness

Telenor's global coordination programme has a single goal: To increase the local
competitiveness of our mobile operations by taking advantage of our global joint
competence and scale. (www.telenor.com, 2008)
 Telenor’s corporate strategy is to emphasize on the Marketing & sales ranks in certain
regions as it increases the sales of certain connections. (Larreche, 2006)

 Re examined all the firms businesses in different regions’ departments where they think
that there sales are not keeping the rapid pace in that market (Larreche, 2006).

 Focusing on the Customer’s segments means to build packages through extensive and
aggressive research technology. Like due to its broad experience as it is one of the
pioneers in Telecommunication industry, so they use their effective experiences and come
up with so many packages in that country that is useful for kind of people (Larreche,
2006).

 Intelligence of Competitor’s and potential competitors strategy. Telecommunication

market is certainly very sensitive market in which making the strategy to be made by
taking care of other competitors’ strategy is very important. The strategy is to focus on
the applications or packages or services that gives the most value to the customers than
its competitors. They are also focusing on providing the services on the web (Larreche,
2006).

Business Strategy

Telenor crystallizes their customer focus as the cornerstone of everything they do. Their
values describe what behaviors are necessary to realize that vision. Their corporate
responsibility mindset ensures that their vision and values nurture social concern and help
them create shared value. (www.telenor.com.pk, 2008)

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Telenor Pakistan considers good business strategy to be an essential tool for achieving our
vision, value creation and strategic goals, and for maintaining a healthy corporate culture.
Furthermore, good corporate governance is imperative for credibility and for access to
capital.

Telenor Pakistan’s activities should serve to illustrate that business success in demanding
markets can be achieved without compromising ethical principles or international norms.
Their Codes of Conduct have been adopted by the Telenor Board and are a key management
tool for influencing all their activities.

Telenor’s vision in Pakistan is simple: “We're here to help”

They say that they exist to help their customers to get the full benefit of communications
services in their daily lives (www.telenor.com.pk, 2008).

The key to achieving this vision is a mindset where every one of us works together: Making
it easy to buy and use our services. Delivering on their promises. Being respectful of
differences. Inspiring people to find new ways (www.telenor.com.pk, 2008).

Believe in following strategies:

The foundation achieves its goals in the following business strategies.

Social Responsibility

Telenor Pakistan acts responsibly and respectfully towards the people and authorities in
different societies and aims to contribute to social and economic development in the local
market. This is the essence of our commitment to Social Responsibility.

Supply Chain Management

Telenor has an important role to play in the societies where we provide our services.
Telecommunications has shown to give positive impacts on economic growth in all
societies. Moreover, as a major buyer of products and services, Telenor has a

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responsibility to ensure that work conditions, safety, security and environmental
standards are satisfactory. The same standards apply equally to our own operations as
well as to our suppliers and subcontractors.

Collaboration

collaboration and realization of projects with nongovernmental organizations, public and

private institutions;

Training and Research

initiating, supporting and carrying out research, training and holding competitions;

Managing certain Operations

organizing roundtables, seminars, conferences and other events related to fields of
Telenor’s operation;

Make it Easy
They say that they don't complicate things. Everything produced should be easy to
understand and use. Because they never forget they're trying to make customers' lives
easier (www.telenor.com.pk, 2008).

Keep Promises
Everything they set out to do should work, or if it doesn't, they're here to help. They're
about delivery, not over promising, actions not words (www.telenor.com.pk, 2008).

Be Inspiring
They are creative and strive to bring energy to the things they do. Certainly, they are
passionate about their business and customers (www.telenor.com.pk, 2008).

Be Respectful
They acknowledge and respect local cultures and do not impose one formula worldwide

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and want to be a part of local communities wherever they operate (www.telenor.com.pk,
2008).
• Dynamic
Being dynamic means having insight and active involvement, coupled with a capacity for
implementation
• Innovative
Being innovative means continuously being on the lookout for new opportunities for
development and growth

Responsible
Being responsible means raising realistic expectations, deliver as promised and stay
committed to the society which our group is part of

Business Objectives

Objectives 2006-07 2015

Market Share in terms of 10% 40%

Subscribers

Market Penetration 9% 30%

Market Share in terms of 7% 30%

Revenue

Unprompted Brand 20% 90%

Awareness

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Market Orientation

Telenor focuses on the customers’ needs and wants and provide services accordingly.
Telenor is truly customer centric. They believe in understanding their customer’s needs
which have changed and are changing constantly therefore continuously driving them to
innovate in terms of products and services. The users of Telenor comprise Prepaid
customers; youth/ Students, Women, Financially Constraint and Postpaid customers;
Corporate/ SME

Mobile services is one of the most convenient and popular modes of communication in
the world today. It connects millions around the globe. It provides services like talk
airtime, sms(text), mms and various internet facilities (Larreche, 2006).

Market Driven Strategy

It is a strategy that drives Telenor into the market which excel the Telenor operations into
neck to neck competition in the market according to the following ways:

Market orientation

Leveraging distinctive capabilities

Customer value/capabilities match

Superior performance

Market Orientation:
Customer focus
For Telenor is to be market oriented, it is essential to focus on the customers need and
wants and make such packages that need to facilitate the services of its customers in
Pakistan. Telenor through its effective experience has one of the competitive edge of

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making more packages giving to its customers, on its competitors. Like they are giving
six packages of prepaid connection services and four packages of post paid connection
packages (Dogar, 2008).

As through their proper research and development, they get to know that mostly upper
middle class and lower middle class eager to have pre paid connection. As statistics
shows that more than 80% of the mobile subscriber in Pakistan are using pre paid
services. So they introduced certain packages in the name of Telenor d-juice and
Talkshawk with in which they offer different rates to different customers according to
demographical and psycho graphical segmentation which shows to what extent they are
customer focused. As it is giving the franchising and retailer facilities in different cities
reflects their concentration on the customer. They facilitate the customer through its sales
and customer services centre in different cities where the customer relation officer
facilitate the customer regarding different issues like GPRS,MMS and other connection
activation issues. They also give guideline to customers that how the different packages
can facilitate best according to their affordability and their compatibility. They also solve
and answered their queries in a very organized way. So all the above facts tells us that at
what extent Telenor are customer focused (Dogar, 2008).

Competitor intelligence
Due to neck to neck competition, the competitor intelligence play a vital role in
maintaining the market share aggressively. For example by 2005 it was the competitor of
Warid Telecom with the market share of less than 20% and at that time Mobilink was the
market leader with more than 58% .But by 2007, its market share dramatically increases
by more than 22% whereas Mobilink has about 30% market share. It is due to an
effective competitor intelligence of Telenor that it is competing with the market leader
and want to become the market leader in the future by their effective services, new
innovations in technology, greater customer value, larger network coverage, efficient
promotion, highly qualified and experienced staff and leadership (www.telenor.com,
2008).

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It is the ability of Telenor’s competitor intelligence that they are using efficient packaging
services to the customers in the right direction. For example Telenor is only one in
Pakistan who is giving mobile TV to its customers. Also as for as the rates are concerned,
it has the competitive advantage of making a call to other networks at much reasonable
price than of making a call to the same network. They had make a better market share due
to biggest network coverage and advance technologies, so on this basis the benefits are
more than it costs for the customers. On the other hand, Zong and Warid are not come up
with that much advance technology and broad network coverage, so according to that
their rates are comparatively high than Telenor.

All the competitor intelligence is possible only through effective marketing research.
Because through proper research, companies come to know about symptoms and the
exact problem definition. Some symptoms seems to be a problem but only through proper
research we come to know what is exactly happening in the market and how one would
compete efficiently.

So, after proper marketing research, Telenor go for competitive strategies. Like Telenor
first time introduced the service of easy loading to its customers in the beginning of their
launching. Moreover, they facilitate the easy loading of just Rs. 10. Similarly, by the
passage of time, Mobile TV servicing etc is a result of effective marketing research that
makes competitive advantage to other companies. In this way, Telenor makes the
competitive environment in the market as before 2005, Mobilink and Ufone were in the
market but there was a situation of oligopoly. So Telenor heightened the competition in
the market and it is the fact that greater the competitive ability, greater would be the
growth rate of that company.

As telecommunication market is based on the short time period strategies because it is

giving the services. Like if Telenor low the rates of messages (Djuice gives Rs.
0.20/sms), Mobilink also come out with the similar package. So we need to be aware
what the other company is doing and adapt changes accordingly. Telenor’s effective

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Research & Development has a sharp eye on the competitors which results in the highest
market growth rate.

Then, Telenor also takes a sharp care on competitors’ strategic alliances because it plays a
vital role in the success of the company. Like Mobilink made a strategic alliance with
Motorola and Huaweii and their installation sites are cited by both of these companies.
But there company booster systems are not that much efficient, so they installed Air
Conditioners in the system room, to maintain the temperature. But Telenor uses Nokia
systems and they are that much efficient that they do not produce heat in their systems, so
they do not install AC’s in their cites. Also, there network range is far more than that of
other companies’ range. Only Ufone’s earlier boosters ranges from 50-60 km but now
they are also using Huaweii’s boosters that are not that much efficient.

Cross-functional coordination
Through cross functional coordination, all the think tanks sit to decide to what extent
development and innovation in information technology is needed and through evaluating
certain systems, which department needed more attention. Through this, Telenor
improves the efficiency in overall departments. As Telenor also divides its departments
into certain teams, so a sense of competition within a department urges to improve
effectiveness and efficiency of that department.

Its HR department that deals with all the departments and examine what problems the
employees are facing while interacting with the customers. HR department also has a
strict measurement of maintaining certain standards among the employees. As in
customer service department, HR people take care of quality in a way that CRO’s interact
with its customers.

As Telenor is a market oriented firm, so there are variety of diversifications that need to
be handled to sustain its position in the market. Like it is giving the services of
telecommunication, so managing network coverage without any disruptions is the biggest
priority. Then the other services like Mobile TV, SMS service, MMS service, customer
service must also be properly handled by first maintaining the standards and then

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checking whether the standards are properly implemented, which is handled perfectly by
Telenor.

Environmental Influences
Environmental influences play a key role in market orientation. Telenor is doing effective
environmental scanning through proper research in different departments. It is done either
through secondary data, observational measures and having experiments in the form of
test marketing. By this approach, they get to know whether they are going on the right
path or some improvement is needed or we need to import any substitution on that side. If
any improvements are needed, it can be done through structural adjustment programs or
local content requirement approach.

Distinctive Capabilities
Shortly, it includes the capabilities that are different from its competitors and have high
value for the customers. In terms of Telenor, it has the distinctive capabilities of having
broad network coverage with the most advance technology of booster systems. Then the
technology of Mobile TV differentiate Telenor from other companies. Moreover, it can be
divide into following aspects:

Superior to the competition

As it is been discussed above, Telenor’s network coverage and its quality creates
superiority over the other companies. They are using Nokia Systems while installing the
boosters which are the most efficient one in the market. This results in less network
coverage breakage cost and recruitment of more employees’ cost. As statistics shows that
Telenor has very few Telecom Engineers with high pay package than all the other
competitors in terms of their network coverage.

Then the facilities of making a call at Scandinavian countries and Western world at very
low rate. Plus it also gives the facilities of outside country roaming at a reasonable price
that makes superiority to the competition.

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Difficult to duplicate
Mobile TV is a new thing in a Pakistan market that is very difficult to duplicate. It is
introduced to hit post paid customers and to develop the perception in customers and
potential customer’s mind that they have the most advance technology than any other
company.

CEO of Telenor Pakistan while giving an interview in a program Brand Power to TV1
Channel says that they have that much advanced technology in the global world like
Telenor Satellite Services, Automatic Meter Reading, digitalizing telephone network; that
if they are introduced in the Pakistan market, they can increase much more shares but
introducing these technologies, cost would be higher than the benefits.

Applicable to multiple competitive situations

Telenor has capable to drive its market share in successive way due to its multi dimension
capabilities. It has strong network coverage by using hybrid and dynamic technologies.
As technology is the competitive edge of telenor on others and they design their operation
and activities in such a way that they are ready for any multiple competitive situation. For
example if the competitors are introducing some new packages and targets the customers,
then telenor has much capable to response these actions due to its up to date technologies
and competitor intelligence system. In spite of that if there would be some adverse
situation like earthquake, floods and emergency situation they are ready to compete
theses contingent situation and can meet the required services to the customers.

Value and capabilities

Telenor is giving the value-added services to its customers in the form of customer
service departments, the franchising and extra services like horoscope, news, sports
updates etc.

Customer values/ Match the capabilities

Matching the capabilities, Telenor evaluate to what extent, they are giving the customer
values to the customers. As far the rates the concerned, they are comparatively the same
with other markets as all the competitors are market oriented. So, to be in the market,

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they need to be competitive in terms of rates, network coverage etc. Overall, except
distinctive capabilities, customers are getting the same values with different faces.

Superior Performance
Telenor is giving superior performance in terms of its voice quality, network technology
and rates in comparison with giving the values, to its customers. They are using Nokia
Systems while installing the boosters which are the most efficient one in the market. This
results in less network coverage breakage cost, high voice quality and recruitment of
more employees’ cost.

Market Segmentation & Targeting

Currently the population of Pakistan is over 155million. If we exclude 20% of the poor
population and 30% children (below the age of 10 years). We get a potential target market of
about 87 million

So far cellular mobile companies have grabbed 34.5 million subscribers which is only 39% of the
potential target market.

About 59% of the potential population is living in rural areas. Mobile operators will focus on
grabbing the inaccessible areas and increasing their penetration by expanding their networks

In future, it is expected that post paid segment will grow at a faster pace than prepaid segment
converting a portion of the prepaid segment to postpaid. For e.g. Post paid packages aimed at the
youth and students

Market Segmentation and Positioning

Segmentation is the process of dividing the total market for a good or service into several
smaller, internally homogenous groups. Since Telenor is a customer oriented and quality driven
company, it segments its market on the basis of various different dimensions.

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Market Segmentation & Product Positioning Analysis

Future 4 years
Market Segment Today Existing Products Profitability %
Estimate

Youth/ students 25% 27% Djuice, Talkshawk 29%

Women 10% 20% TalkShawk 21%

Financially TalkShawk, Telenor

40% 23% 20%
Constraint Azadi

Corporate/ SME 25% 30% Post Paid -Packages 30%

Market Positioning

Companies positioning against competition

Parameters Mobilink Telenor

Product Life Cycle Maturity Growth

Market share % 59% 7%

Coverage 900 cities 1100 cities

Jazz Octane, Mobilink TalkShawk, Telenor

Product Portfolio
Indigo, Ladies First, Azadi, DJuice

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Customer Base 17.2 million 3.6 million

Marketing Operations Excellent Average

Segmentation Strategy
Telenor is using multiple segmentation strategy and developing separate marketing program for
each segment because different customers are looking for different benefits from different
services they purchase. Estimating the market potential of each segment includes asking how
many prospects with how much purchase power there is for each particular want.

Which Market to Segment

Regarding Pakistan different markets are segmented by Telenor on the basis of:
1. Geographic

2. Demographic

3. Psychographic

4. Behavioural

Geographic (Area wise)

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

Demographic (Life style)

Age:

Telenor knows that needs and wants of customers changes as they go through life. So, with
change in age Telenor introduces different services. The main segmented market is the young
people of age 15-30.

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Pre paid-mostly Students, youngsters and middle class

Post paid-Business Class, Industrialists

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Pre paid:

Talkshawk

Talkshawk Her Second For 15-22 yrs

Talkshawk 30 Second For 20-27 yrs

Talkshawk Her Minute From 25- onward

Djuice

Djuice From 15-24

Djuice Jaagtay raho From 18-24

night

Post paid:

Persona

This Post paid service targets the Business Class mainly. There are four different plans
which varies with the amount of monthly line rent.

Persona From 32-55

Income:

Telenor also segments the customers on the basis of income level. Different packages are there
for people of different income level

Pre paid
Post paid

Pre paid:

Talkshawk

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Talkshawk Her Second For Students

Talkshawk 30 Second For Students and Job people (low income)

Talkshawk Her Minute For Job people

Djuice

Djuice For SMS lovers Students

Djuice Jaagtay raho For SMS lovers & who like to talk them in night

Psycho graphically (Personality)

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

Behavioral

Telenor is segmenting the customers according to their behavior, mind set and thinking.
Different people have different behavior, different mind set different thinking Telenor is
segmenting behaviorally by offering different package in pre paid and different plans in post

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paid. Singers are liked by people the singing culture is being promoted in our country so they
hire singers for their promotions to hit customer’s mind.

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Product strategy

Five Product Levels:

Core Product: Communication

Basic Product: Telecommunication Service

Expected Product: Consumer expects good network coverage and faster connectivity.

Augmented Product: Value addition includes mms, EDGE, bubble messages, WAP portal

Potential Product: Potential service includes bill payment & easy load facility on its websites.

Product is strength of a company. Telenor providing to their target customers quality products.
Telenor have three packages

1. Talkshawk
2. Dejuice
3. Persona
Talkshwak and dejuice are prepaid packages of Telenor and Persona is postpaid pakage. Telenor
is using multi product strategies for improving their performances. Telenor made main product
strategy for prepaid packages. Because now a days people have many options of product and
services offering by other mobile companies. They switch quickly to other networks. So that’s
why Telenor made different product strategies to retain and attract the customers. These
strategies are

Add a new product

Cost reduction

Product improvement

Marketing strategy alteration

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Product Elimination

Add a new product strategy

Telenor using new product strategy according to customer need and wants. When they saw their
existing product has been complete its maturity line and they can’t make improvement in
existing product then they introduced new product in market with new features. Now in market
there is very much competition among different mobiles operators. So Telenor introduced
talkshawk and dejuice to compete the market. Talkshawk is for long talk especially in lowest
rates. And dejuice is for sms ate very low rates.

Cost reduction strategy

Telenor using cost reduction strategy to compete with market. Because people are price sensitive
so that’s why they do their low the prices of product. Through cost reduction strategy Telenor
offering late night packages to reduce the networking cost of booster. Because whole night
boosters continuous provides the coverage and at night load of subscriber very low that’s why
they offered late night packages at very low cost.

Product improvement strategy

Telenor also using product improvement strategy to bring improvement in products with short
time period. Because market demands improvement and want new thing in very low cost. They
make little changes in existing product. Like Telenor now a day making improvement in
talkshawk packages.

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Marketing strategy alteration

Telenor also making alteration in strategy to make product successful in market. Firstly Telenor
more focus on talkshawk packages but when the trend of sms has come in market then Telenor
introduced new packages in dejuice.

Product Elimination strategy :

Product elimination strategy used by companies to survive in market because when the product
fail in the market then companies eliminate the product and introduced new product. Same this
case with Telenor, they firstly introduced ‘AZADI’ package at starting of their operation in
Pakistan. Soon after the lunched of Telenor dejuice package and Telenor talkshawk package,
Telenor eliminate the Telenor AZADI package.

Mobile subscriber forecast

The mobile handset market has become very exciting. Market segmentation in high end, middle
end and low end handsets is resulting in choice and affordability to all types of customers.

Increase in the number of subscribers for postpaid packages is mainly because operators have
launched services like gprs/edge, mms, blackberry corporate mobile email solution, mobile
banking, ringback tones and several other content based options.

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Product forcasting

2007 2008 2009 2010

Prepaid 59,130,000 68,208,000 73,950,000 78,370,000

Postpaid 6,570,000 10,192,000 13,050,000 13,830,000

Total 65,700,000 78,400,000 87,000,000 92,200,000

Cycle (Telecommunication Industry)

SERVICES INTRODUCTION GROWTH MATURITY DECLINE

Cellular

Fixed Line

WLL

Cellular INTRODUCTION GROWTH MATURITY DECLINE

Prepaid

Postpaid

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Product plan
KPIS Industry Where are we Improvement PlanImprovement
Benchmark 1
Plan 2

Network 40 % 55% Increase Cell sites Sharing

Quality infrastructure

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PRODUCT PLANNING
Relative Cost/ 50 % 55% Cut down onCollaborating with
low
WHATprice HOW unnecessary
WHO costsyour
WHEN forward
in the value chain channel allies to
By increasingTelenor’s CEO By the end of
reduce their costs
investment. 2007
Implementing Mobile also chairman of
Customer 10% 15% Increase the Highly efficient
Number Portability By increasingMNP supervisory
Care number ofHelpline responses.
budgetary allocation board
Customer SalesFeedback given
Joint ventures Centers. within one hour
guarantee.
. Enable Complaint
registry through
Superior network Investing heavily inTelenor By 2008.
sms
cell sites
Quality and Coverage
New Product 15% 17% Design packages to
Sharing infrastructure
Activity cater the needs of
and space with other
different segments
mobile operators
e.g. women

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Pricing strategy:
Price plays a strategic role in success of product of company. And now a day price is sensitive
issue for all companies. Because now customer is very much price conscious. That’s why
company keeps in mind all sensitive strategic price before determining the price of product. And
there is very much competition in business world especially in telecom sector.

Mobile players are segmenting their customers and announcing packages accordingly to meet
their needs.

Recently examples include Jazz Octane and Dejuice focused on the youth segment, talkshawk
for financially constraint and students, Ladies First by Mobilink for the female segment.

Due to telecom deregulation in Balochistan, the teledensity increased by 5.6% to 10.47% in 2006
showing growth of 87%.

When we saw price strategies of Telenor then it looks very much sensitive and complex. Because
they have considerations before making price strategy.

These considerations are

• Ability of customer to pay for product

• Cost of products
• Marketing cost
• Ethical issues
• Competitor cost

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Telenor makes their price strategy after complete market research and analysis. Telenor first
determine the price objectives which are

• To gain market share

• To increase in revenue
• To increase new subscriber
• Stimulate the demand of products of Telenor
• To win competition war
• To positioning in consumer’s mind
To fulfill the above objectives Telenor analysis the current situation of market on the following
grounds.

• Customer price sensitivity

• Determining product cost
• Analyzing current and potential competitive actions
• Evaluating legal and ethical constraints

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But the main thing is that competitor analysis and before knowing their competitors company
can’t be success in market. So Telenor using different approaches to determine the price.

• Cost oriented approaches

• Competition oriented approaches
• Demand oriented approaches
Telenor is doing excellent job in price strategy. Because they introducing new packages at lowest
rates and they have less leverage in packages according to market demand. In certain package
Telenor charge little high price but the services like EDGE, Tele doctor, mobile TV..Etc Which
they are providing to customers not providing by other companies.

Telenor is using low active price strategy because they are providing quality services to their
customer at relatively low price and they mentioned prices in their ads.

Active strategy

Low High
active active
strategy
Strategy
Relatively Relatively
Low price High price
Low High
passive passive
strategy strategy

Passive
strategy

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Now there is comparison of Telenor prices with other mobile network

Prepaid tariff comparison of Telenor-UFone-Mobilink (Per mint)

Tariff Telenor (per min) U-Fone (per min) Mobilink (per min)

Net work to network 1.00 R.s 2.50 R.s 1.00 R.s

Network to other network 1.40 2.50 1.60

Network to ptcl 1.40 2.50 1.60

International SMS 5.00 15.00 8.00

Sms 1.00 1.00 1.00-1.50

MMS Per Incoming /

5.00 5.00 (per 64 kb) 6.00 (per 50kb)
Outgoing Message

GPRS Per Megabyte * 15.00 18.00

Nationwide Roaming Free Free Free

Voicemail Per Minute 1.00 1.00 1.50

The number of franchises increased from 984 in 2004/05 to 1202 in 2005/06

PRICING PLANNING
WHAT HOW WHO WHEN

Revamping the value

chain and outsourcing Marketing heads of By the end of
Low cost leadership
high cost producing Telenor 2007
activities

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MANAGEMENT

WHAT HOW WHO WHEN

Hiring the competent

staff and firing the
Human resources incompetent staff
As soon as it
Employees at management Telenor Pakistan
Tough screening criteria can be done.
position
Multinational standard
salary to be paid.

Promotion strategy
Promotion strategy consists of planning, implementing, and controlling communications from an
organization to its customers and other target audience. Telenor using different types of modes
for promotion of their products in Pakistan. First Telenor set their promotion objectives which
they want to achieve through promotion. Then they decide how and what massage should be
communicate. Which media should b used for promotion? And which media is most effective
from consumer point of view? The objective Telenor is achieving following objectives through
promotion strategy.

 Gaining more market share

 Finding buyers
 Building their image
 Customer retention
So Telenor using following components of promotion strategy.

1. Advertising (non-personal communication)

2. Sales promotion (trade shows, contests)

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3. Publicity (indirect channel)

Advertising:
Advertising is the main common mean of conveying massage to your right consumers. Through
advertising media you can generate the need of your product in customer’s mind. Telenor using
advertising media for their both packages,

• Prepaid
• Postpaid
Telenor doing advertising through different media like

• Television
• FM Radio
• Internet
• News Papers
• Banners
• Sign Boards
• Sales & service centers
• franchises
• Other outlets
• Mobiles Vans

Prepaid advertising:

Telenor is doing more advertising of their prepaid packages. Because they mainly focus on
youngster, like students, bachelors, middle class people. So they are doing advertising of their
prepaid packages in more attractive and energetic way. Today whenever you will watch the ads
of prepaid packages its more color full and innovated. Telenor continuous bring changes in their
prepaid packages. And one thing is very important in their advertising that they make contracts
for most popular model and singer of the Pakistan.

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Postpaid advertising:

The strategy for postpaid advertisement is very different and sophisticated according their target
market of postpaid packages. In their advertisement they show only business class and executive
class people. And they only focus on business class people.

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Sales promotion:
Telenor also do sales promotion activities to build customer relation, brand image, and also retain
the customers. In sale promotion activities Telenor arranged the certain trade shows, contests,
concerts of popular singers of Pakistan. And through sponsor to cricket series in Pakistan,
Telenor do sale promotion. And objectives of sale promotion activities are:

• To make new customers

• To create awareness about Telenor
• To increase in sale
• To gain market share
• To remind the people about Telenor
• To build their soft image in people’s mind

Publicity (indirect channel)

Telenor also doing publicity of their brand through different indirect channels. Basically they are
conveying a soft message to people that we are going with our vision that is

“We are here to help”.

• Telenor using different ways for publicity like,

• Traffic sign boards on main roads
• House name plates
• Street number plates
• Different walls of colleges
• In news paper social ads about diseases
• On motorway signs for careful drive

Telenor Pakistan now operates the country’s fastest-growing mobile network by effective
promotion activities. The striking growth rate has been achieved through the application of a
highly successful business model, local enthusiasm and hard work.

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Distribution strategy
Channel of distribution provide the essential linkages that connect producer and customers.
Telenor using more than one distribution channel to provide the customer value and satisfaction
and easy access to them (Czinkota, 2006). If the company’s have strong distribution channel
system then it will:

• Control over market share

• Have competitive advantage

Customer characteristics
The demographic and psychographic characteristics of targeted customer will form the basis for
channel design decision. (International marketing by micholer R. czinkota)

According to above approach Telenor also analysis the internal and external determinants for
selecting for distribution channels (Czinkota, 2006).

Determinants
External Internal

Customer characteristics Company objectives

Culture character

Competition capital

Cost

Convey

contract

Continuity

communication

The Telenor channel of distribution is a value-chain networks that providing customer values to
the end user. Telenor was using in near past intensive distribution strategy but the government of

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Pakistan banned to sells their Sims on every retail shop. Now authorized dealer can sell the
mobile Sims of Telenor. So now they are using exclusive distribution strategy.

So Telenor using following chain of distribution channels for reliability of customer. To make
sure that product should be available everywhere in Pakistan (Pakistan Telecommunication
Authority, 2008).

Distribution centers of Telenor

 Sales and service centers
 Franchises
 Other outlets
 Mobile vans
Telenor have their sales and service centre in major cities or Pakistan like Islamabad, Karachi,
Lahore.

Telenor have their franchise in every city of Pakistan where network is providing services. These
franchises provide the customer information and service of mobile cards and new connections.
They are also providing these Sims, mobile cards and facility of easy load to other authorized
dealer through their agents.

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Distribution Structure of the Cellular Sector:

Distribution by Franchises and service centers (combined) (CRM & Business Strategy, 2000-
2008)

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Total franchises by all operators grew by 60% in 2005 whereas it grew by only 22% in 2006

Operators including Paktel and Instaphone negatively affected this growth since Instaphone
started closing its franchises whereas Paktel stopped giving official status to franchises and
changed its policy with freelance franchises concept (Pakistan Telecommunication Authority,
2008).

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DISTRIBUTION PLANNING
WHAT HOW WHO WHEN

To make distribution a competitive increase theTelenor marketingAs soon as

advantage to reach as many people distribution and distributionpossible by
and to cater to as many cities as channels heads. the end of
possible 2009
offer Fair
high channel loyalty profitability for
channels

REPOSITIONING PLANNING
WHAT HOW WHO WHEN

Telenor design specific packages to Offer discountsMarketing andmid 2007

appeal to different growing cards, creative heads of
segments entertainment, telenor pakistan
cooking tips,
Women
health tips through
Corporate/ SME sms.

Remarkably low
call rates

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Conclusion:
According to all of this information we can see that although Telenor is facing some
problems to become a market leader but they still strive and passionate to achieve its task, so its
overall market position is very strong in different countries especially in Pakistan as statistics
shows Pakistan has second highest economic growth as comparison to the other countries. So by
adapting carefully manage strategy Telenor can compete in Pakistan and can get full
opportunities in this high potential market. Due to its distinctive capabilities of latest technology
in the form of Mobile TV, bubble message, EDGE, SIEMENS and NOKIA boosters’ systems in
certain region, it is still in the growth stage in the market. Also, it has the vast experience in other
countries and it is also one of the pioneers in satellite telecommunication and broad casting
technology throughout the world, so it knows how to do and when to implement the certain
strategies.

Works Cited
CRM & Business Strategy. (2000-2008). Retrieved November 26, 2008, from
www.gsmworld.com.

(2006). In M. R. Czinkota, International Marketing. Mc Graw Hill.

Dogar, N. (2008). Strategic Marketing. Sahiwal, Punjab, Pakistan.

(2006). Corporate Strategy. In W. M. Larreche, Marketing Strategy a decision-

focused appraoch (p. 4). New Delhi: Tata McGraw-Hill Edition.

Pakistan Telecommunication Authority. (2008). Retrieved November 25, 2008, from

www.pta.com.pk.

www.telenor.com. (2008). Retrieved November 22, 2008, from

www.telenor.com/about_us.

www.telenor.com. (2008). Retrieved November 22, 2008, from Telenor

Telecommunication: www.telenor.com\About_Telenor_How we do our corporate
Strategy-Telenor.htm

www.telenor.com.pk. (2008). Retrieved November 22, 2008, from Telenor-Pakistan:

www.telenor.com.pk\About_Telenor\Telenor_Pakistan\Vision & Values.htm

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