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7/30/2019 Wateen Final 50
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Marketing Mix
Product:
Wateen offers 3 major product offerings:
a) Calling Cards
b) Entertainment & TV services
c) Broadband & Internet services
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PromotionPromotion is a very important element in the marketing mix.
Wateen promotes its products by:
Advertising Billboards in Busy Localities Above the Line Advertisement (Use of the mass media)
Television Ads Newspapers Ads
Through Franchises Below the Line Advertisement (Use of resources other than mass
media) Outdoor Advertisements Telemarketing
Various competition schemes
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The company had issues regarding its product awareness anddelivery of the product.
In Wateens case, the product WiMax has to struggle a lot ingetting a market share. Wateen has placed two ads in the print
media for Wimax. One was related to the product launch Theproduct was advertised and promoted before it was in a formalposition to be launched.
The second advertisement from the campaign was based on goodadvertising strategy. It focused on corporate image of the
company and the feeling that there is a new entrant who will beoffering value services in Telecom Sector.
The advertisement was not offering anything in particular andhence is the right Pre-Launch Ad before products are practicallyready for delivery.
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Pricing The pricing strategies of Wateen were not very good. They were charging 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; they charge
you high fees initially so that even if a user isnt satisfied withthe service, hell think thrice before switching to anotherservice.
Wateen soon recognized the problems with their pricingstrategies through the poor market response they receivedafter the launch.
They reconsidered their prices and lowered them to match thecustomer expectations but they are still not low enough to gainpositive market response.
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Placement
Wateen is located in 17 cities throughout Pakistan. The
phases have been covered with a total route of 350 pluskilometers.
First Phase:Lahore, Karachi, Islamabad, Faisalabad
Second Phase: Multan, Sahiwal, Gujranwala, Sukkar, Hyderabad,Quetta, Abbotabad, Jehlum, Peshawar, D.I. Khan, Sialkot, Gujrat andSargodha.
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Product Life Cycle Wateen is currently in the growth stage. Sales tend to grow at this
stage.
Promotional expenditures are less than what they are at theintroduction stage, when new customers are lured.
The Product-Awareness Advertising that is initiated in theIntroduction stage is kept for the growth stage also. In case ofWateen Wimax, huge advertisements were done way before theproduct was launched and when they finally launched it, it wasnothing like what they had advertised. This brought a criticallynegative impact on the brand reputation and the customerconfidence was shattered.
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Suppliers /Renowned Partners
Renowned partners such as
Motorola
Pioneer of Six Sigma Technology
Motorola has signed a contract with Wateen to expandWateens WiMAX network, enhancing coverage and
doubling the capacity of the network which covers a
population of 30 million across 22 cities in Pakista
CiscoCisco provides all the equipment for networking. Cables ,
Routers and video conferencing equipment also are
provided by CISCO.
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Wateen Customers are asfollows
Faysal Bank
Alfalah Insurance
Bank of PunjabHSBC
Bank Alfalah
Barclays
Telecom Providers:
Warid
Zong
Wateen Customers
Corporations are
charged Rs. 50,000
per month and 20,000
for installation cost.
Benefits
Qucik Service 3 hour
Response and Action
time
Dedicated Bandwidthand Dedicated Fiber
optic channels
Telecom Carriers use Wateen Fiber Optic to
transmit Voice and information data.
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Franchise
He receive call from customer. He fills in Wateen Form andform details are filled in Wateen Online Database , advancecash payment is taken and is sent to Head Office within 2
days.
Head Office (Lahore)
Information control officer receives request for new CPE
and opens New User Account and new user is allottedBandwidth.
After 4 days New CPE is installed at customer home place.
Production Operation
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HR Practices
Hiring
Head office is located in Main Boulverad, Lahore. Over
there HR and relevant supervisor take written test or
Interview Firing
In order to fire an employee one month prior notice is given
to the employee and in previous year large scale corporate
restructuring helped Wateen to retain profitability.
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Motivation
For motivation some Paid trips are given to Top
management and 20 Leaves are given with one month basic
salary. Bonuses
After the end of year people who are part of organization
are given bonuses.
In year 2008-2009 bonuses were not given.
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Political influence takes place when a new project is
undertaken. In order to place fiber optic cable permission is
taken from city government but if government changes
project may be delayed or sometimes suspended.
Pakistan Telecommunication Authority is the regulatory
body
Political
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Pakistan is considered a developing country by the WorldBank with GDP per capita $2600 in 2006.
48.7% of Adult are literate rate and life expectancy is around63 years. Population was estimated 165 million in 2007 and is
expected to grow 2.09% annually. Currently, Pakistans economy is at a critical stage. Taxes,
unemployment are high. The real interest rates are negative.GDP growth rate 3% and inflation was 12-15%
Recently Wateen had downsized its employees by cutting 550jobs.
In last 2009 quarter Wateen earned strong Rs 830 milliondespite recession
Economical
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Pakistan has opened up in terms of its society i.e. culture,
religion and customs. It is has become a part of the global
village due to its technological advances.
Currently there are 564,352 broadband subscribers and till2013 it will touch
PTCL leads the race having more than 148,000 DSL
Increase trend towards broadband from businesses, students
and most importantly households. People are becoming quality conscious. They have started
demanding after sales service and warranty. Consumer
behavior is changing thus.
Social
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Wateen has its own backbone (Optic Fiber from Trans WorldAssociates Pvt.Ltd) and own international gateway.
Introducing Wimax service had given it a competitive advantage.
Wateen Telecom chose MOTOwi4 WiMAX technology and IMS
Core technology , based on the IEEE 802.16e-2005 standard. Through its Wimax network, Wateen now offers services that
include triple play offerings such as local and long distancetelephony, video conferencing, broadband Internet and dataconnectivity, high-quality TV, video security/surveillance and
high speed, high quality interactive gaming. The WiMAX network is a critical component of
Wateens vision to create a world class communications networkin Pakistan
Technological
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CEO / TariqMalik
GeneralManager
Enterprise
General ManagerHuman
Resources
GM ConsumerSales
GM RegulatoryAffairs
Head of Legaland Company
Secretary
GeneralManager
Finance
GM InformationTechnology
General Manager / ShahidMiah
Organization Structure
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Features
Mechanistic Organization
Small Span of Control
Centralized Communication Formal Channels
Work Specialization
Rigid Structures
Organization Structure
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Differentiation Strategy
Wateen has opted for differentiation strategy as it is
targeting individual consumers and corporate clients.
For Individual consumer it has provided variety of broad
band packages according to download necessities of users.
Corporate clients are charged 40-50000 Rs./ month as theyare provided Internet Services as well as Virtual Private
Network (An Advanced type of Local Area Network)
Competitive Strategy
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Wateen Customer care is not given much focus by Wateenand customer are left with frustration .
Online help is not efficient and most of times delayingsolution to problem or incapable of solving problem.
A problem may be solved within 3 days to a Week.
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Wateen has other products but they are not well known tocustomers.
Wateen primarily gets its revenues from Broadband andcalling card.
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Mostly Wateen users complain they are not receiving data
download speed as promised by Wateen
People receive only 10-12% of the stated bandwidth
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Generally users are not satisfied with their internet serviceproviders.
Wateen has problems in dense areas , Areas with bushes, treesand closed areas (Tall buildings). Data download becomes slowor connection comes to halt
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Wateen was pioneer in WiMax Technology. Wateen users
can have Wifi Access easily without any additional device
It is covering 22 big cities of Pakistan
Wateen main advantage over competitor is portability andhigh speed
Wateen has strong financial backing from Middle East
Investors. Wateen being subsidiary of Warid
Wateen targeted initially Corporate clients but nowindividual consumers.
Lowest Wimax Internet Service Packages.
Strong customer base for Wateen till 2009 company had
more than 100,000 customers.
Strengths
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Wateen does not have DSL at present
Wateen does not have strong management
It is incurring huge supplier cost as CPE of Motorola costs
more than Rs.18000. Wateen infrastructure cost is relatively high as compared to
competitors only to cover Lahore 250 Towers are installed.
It is covering low number of cities only 22 cities.
Wateen charges on browsing web (Limited DownloadingPackages)
Weaknesses
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Wateen can hire visionary management from different
Telecom organization.
Wateen can acquire smaller service providers to grow its
customer database.
Wateen can also launch Fixed line Broad Band.
Wateen can provide web hosting to its customers for a
minimal fee.
Increasing number of WiMax users by introducing WateenDongle USB
Wateen can go for Brand repositioning .
Organization can purchase CPE from different suppliers
Opportunities
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Wateen is having stiff competition from Existing
competitors LinkDot Net , PTCL , WorldCom
Political instability is causing market to be uncertain.
Corporate sector is in flux and thats why it is difficult to
provide services to other corporate clients.
Wateen lost its being Competitive advantage of being sole
WiMax when other New Entrants ( Witribe , Qubee,
Mobilink Infinity ) have also targeted customers with
Wimax Services.
New entrants like Witribe is targeting customers with
Wimax USB.
PTCL planning to increase data download speed (1 Mb to 2
Mb)
Threats
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Competitive Analysis
HighestDSL
M.share
3.1MB/s
Existing Competitors New Entrants
OrascomGroup
Fixed Line
DSL
Fixed Line
DSL
18% 7% 14%48%
10%
3%
Cable net
Mareket hare