You are on page 1of 86

1. Executive Summary The mandatory internship in BBA (Hons.

) program is very beneficial to have pract ical exposure of how things really go in market. Being a student who wants to ma ke a mark in marketing field, the best place to gain practical understanding of marketing was to do internship in the marketing department of telecom industry w hich can be regarded as one of the most dynamic industry currently in Pakistan. I took the internship with Warid Telecom which stands as a prominent name in Tel ecom industry. I am proud to work as an internee with Warid Telecom and this exp erience will surely help me in my future assignments as a marketing professional . The absolute guidance and concern of higher management, perfect working enviro nment with immense cooperation of the staff of all departments especially the ma rketing department facilitated in making my internship a wonderful learning expe rience in all aspects. Internship duration offered to me was six weeks, later ex tended to eight weeks were based on projects with marketing collateral section, new city launches section, events section, BTL advertising section, prepaid segm ent section. Through these projects, I was able to get direct interaction with s taff of finance, procurement and logistics, marketing finance, marketing communi cations, public relations, information technology, administration and human reso urces departments of Warid telecom. Through this internship; I was able to meet and interact with different vendors, people from media field including singers, reporters, advertising agencies, fashion industries, and event management compan ies. Internship Report: Warid Telecom 1

2 INTRODUCTION AND BACKGROUND WARID Telecom Internship Report: Warid Telecom 2

2. Introduction and Background: Warid Telecom Warid Telecom is a joint venture between Abu Dhabi Group & SingTel Group. Abu Dh abi Group entered into a strategic alliance with Singapore Telecom. Subsequent t o this transaction in July 2007, telecom giant SingTel acquired 30% percent equi ty stake in Warid Telecom, Pakistan, for US$758 million. This partnership is par t of a strategy to support Warid Telecoms continued growth and to enhance its mar ket position. Abu Dhabi Group One of the largest business groups in the Middle East and the single largest for eign investor in Pakistan. It has diversified business interests, offering stron g financial resources and extensive management expertise that result in commerci al success for several institutions. Warid Telecom takes pride in being backed b y the Abu Dhabi Group, one of the largest business groups in the Middle East and the single largest foreign investor in Pakistan. The Abu Dhabi group s major in vestments are in the following sectors: Oil and gas exploration Banking and fina ncial services Automotive Hospitality services Property development Telecommunic ations The group has successfully launched its services in Bangladesh in May 200 7. Warid Telecom International has successfully launched operations in Congo-Bra zzaville, Bangladesh and Uganda with plans underway for Georgia and Ivory Coast. Internship Report: Warid Telecom 3

Some Major Investments Wholly owned properties and companies Bank Alfalah Limited United Bank Limited Alfalah Exchange Company Iranian Sanden Industries J.C. Maclean and Co Neo Pharma LLC National Telesystems and Services Al Jazira Management Mall Le Royal Meridian Hotel Abu Dhabi Dhabi Contracting Dhabi Drilling Offshore Rig O perations Al Ain Palace Hotel Dhabi Enterprises Leasing The SingTel Group The SingTel Group serving both the corporate and consumer markets is committed t o bringing the best of global communications to customers in the Asia Pacific an d beyond. With significant operations in Singapore and Australia, the Group prov ides a comprehensive portfolio of services that include voice and data services over fixed, wireless and Internet platforms. Over the years, SingTel has grown t o be a global player with a strong regional heritage. With one of the most exten sive and advanced telecommunications infrastructure, the Group offers unparallel ed reach in Asia and beyond. SingTel s highly developed international network pr ovides direct connections from Singapore to more than 100 countries. It is a maj or investor in many of the world s most sophisticated submarine cable and satell ite SingTels investment in mobile operations include Advanced Info Service (AIS) T hailand, (21.4%), Bharti Telecom Group India (30.5%), Optus Telecom Australia (1 00%), Globe Telecom Philippines (44.5%), Internship Report: Warid Telecom 4

Pacific Bangladesh Telecom (PBTL) - Bangladesh (45%), Telkomsel Indonesia (35%) and Warid Telecom Pakistan (30%). 2.1 Vision Warid Telecoms vision is "to become the leader in national communications arena w ith a strong international presence. 2.2 Core Values Warid Telecom s brand values include: Quality Transparent Innovative Customer Friendly Simple 2.3 Policies Warid Telecom believes in working with strategic partners and employees for long term relationships. As a consequence of the above Warid Telecom is looking for the following to deliver its vision: Strategic vendors and partners to assist in rolling out these services in a timely and efficient manner with a focus on tur nkey solutions and premium propositions; Strong partners to assist in launching these services and creating effective sales & marketing / business development o pportunities for all to operationally and financially gain; Consultants and expe rts to help deliver this vision; Well rounded employees who wish to become part of this adventure. Internship Report: Warid Telecom 5

2.4 The Warid New Look An evolution that strengthens the Warid identity while keeping the customers in focus. This time Warid used a more contemporary font & style to give a more appr oachable image. Warids new slogan is Life ka Network. This new logo encompasses the expanding reach of Warid not just in Pakistan but in an international footprint . With our strengthened GPRS/EDGE network we would empower our customers to crea te their own life style networks. Internship Report: Warid Telecom 6

3 BUSINESS STRUCTURE AND STRATEGY Warid Telecom Internship Report: Warid Telecom 7

3.1. WARID TELECOM TEAM Board Executive Committee Warid Telecom Mr. Bashir Ahmed Tahir Vice Chairman and Member of Advisory Committee Mr. Bashir Ahmad Tahir is a Pakistani national. Key positions currently held by Mr. Bashir Tahir are CEO Abu Dhabi Group, Board Advisory Committee and Bank Alfalah Limite d. Mr. Pervaiz A. Shahid Board Director Mr. Parvez is a Pakistani national with a v ast experience of more than 30 years in the banking sector. Currently Mr. Pervai z is Executive in-charge of Strategic Planning Division, Bank Alfalah and Author ized Power of Attorney Holder of Warid Telecom. Mr. Marwan Zawaydeh Board Director/ CEO Mr. Marwans association with Warid Teleco m started in June 2004 as Group Chief Technical Officer and BEC Member. He curre ntly is the CEO of Warid Telecom. Mr. Lim Chuan Poh Board Director Mr. Lim, 52, joined Singtel in October 1998. He was appointed EVP (Strategic investments) in February 2006. In October 2006, Mr . Lim assumed the position of CEO (International). He is responsible for Singtels business groups through strategic investments in the region. Mr. Quah Board Director Mr. Quah is currently Vice President (Business Managemen t), International Group in Singtel, overseeing new investment opportunities as w ell as existing investment s in the region. Internship Report: Warid Telecom 8

Warid Telecom Key Management Warid Telecoms main strength and focus is its employees. Warid Telecom believes t his will be its key differentiating factor and a recipe for success. The key man agement team includes: Mr. Shahzad Rauf CSO Prior to joining Warid Telecom in 2005, Mr. Rauf was founder and CEO of WebLight Productions Inc providing B-2-B e-commerce supply chain management solutions fo r the food industry. He has over 10 years of experience in Finance and IT depart ments of public sectors in USA. Mr. Thomas Yeo CCO Mr. Thomas joined Warid Telecom as CCO in October 2007. He jo ined from Singtel and has been associated with singtel for more than 25 years. Mr. Javed Mushtaq Chief Information Officer Mr. Javed Mushtaq is a seasoned IT p rofessional backed up by 21 years of domestic and global experience. He has work ed both in private and public sectors. Mr. Zafar Iqbal GM Human Resources and Administration Mr. Zafar Iqbal brought wi th him 35 years of experience with MNCs in Human Resources, Corporate affairs, P rocurement, and Administration in Pakistan and abroad. Mr. Farrukh Hayat GM - Sales and Distribution Mr. Farrukh Hayat is responsible f or sale/ distribution of scratch cards and other products of Warid telecom on na tional basis. He has over 20 years of well rounded experience in Marketing, Sale s, Distribution and management. Internship Report: Warid Telecom 9

Mr. Omer Haider GM Government and Regulatory Affairs Mr. Omer A. Haider has 16 y ears of experience in telecom sector. He has worked with insta, paktel and Alcat el at diversified portfolios involving commercial, sales, marketing and business development. Mr. Tariq Gulzar GM Audit, Risk and Corporate Governance Mr. Tariq Gulzar brings with him over 15 years of experience in assurance, internal audit, audit, accou nting, risk management, and general consulting in Telecom and Media Industries. Mr. Adeel Bajwa GM Legal Affairs & Contracts Management Mr. Adeel k. Bajwa is an experienced legal professional with corporate background in Finance and Commerc ial law. In addition to managing legal affairs at Warid Telecom, his portfolio e xtends internationally as well. Mr. Ahmad Kamal GM Customer Services Mr. Ahmad Kamal has over 17 years of teleco m experience in Pakistan. He has the exposure of working with the countrys most r enowned telecom companies like Mobilink, Ufone, Digital Communications and DVCOM Ltd. Ms Asma Khan GM International Business Mr. Asma khan is responsible for Internat ional roaming and International Business (LDI operations) at Warid Telecom. Mr. Moin Qadri GM Marketing Mr. Moin Qadri has 11 years experience in the field of advertising and branding. He has worked for various leading brands with exper iences in Pakistan, Afghanistan, Indonesia, and UAE. Internship Report: Warid Telecom 10

Mr. Muhammad Ahmed GM Managerial Accounting and Revenue Assurance Mr. Muhammad A hmed possesses 12 years of professional experience in the field of Accounting an d finance. Mr. Muhammad Amir Shahid GM Financial Accounting Mr. Muhammad Amir Sh ahid has 13 years experience in Pakistan. In his current role, he is responsible for financial accounting at Warid Telecom. Internship Report: Warid Telecom 11

3.2. ORGANIZATIONAL STRUCTURE (ORGANIZATIONAL CHART) BEC CEO Advisor CIO CSO GM CCO Divisional Managers Asst. Managers R.M.C Z.S.M Sr. Executive Jr. Executive B.C.M F.M Internship Report: Warid Telecom 12

3.3. ORGANIZATIONAL DEPARTMENTALIZATION Warid Telecom (Pvt.) Ltd. Head office is in EFU House on Jail road, Lahore. Wari d has the maximum number of Sales and Customer Service Centers countrywide, back ed by two state-of-the-art Contact Centers of international standards that are e quipped with the right facilities to ensure real-time online services. Their hig hly trained and wellgroomed team of Customer Service Executives provides round-t he-clock-support. Warid has setup Corporate Lounges, with a customer-friendly en vironment to provide personalized care to our corporate clients. Furthermore, an extensive network of franchises, kiosks and mobile units ensure easy and conven ient accessibility. Different divisions, department and functionaries working in the head office are 1. Marketing 2. Human Resources 3. Financial Accounting & Revenue Assurance 4. S ales & Customer Services 5. Administration 6. Products & Services 7. Procurement & Logistics 8. Legal Affairs 9. Engineering & Information Technology 10. Audit & Risk Services 11. Quality Assurance 12. International Business 13. Public Rela tions 14. Operations and Project Management 15. Govt. Relations In the head office there are also offices of top management including CEO office . Internship Report: Warid Telecom 13

4 DEPARTMENTS Warid Telecom Internship Report: Warid Telecom 14

4. 1. MARKETING DEPARTMENT Marketing is one of the core departments of any Telecom industry. Marketing cons ists of five divisions Marketing Segmentation and Strategy Marketing Finance Mar keting Communications Marketing Operations Loyalty Each of above divisions consists of sections Segmentation and Strategy Division Marketing Operations Division Marketing Communications Division Masses Segment Y outh Segment Female Segment Postpaid Segment Prepaid Segment Retail Operations N ew City Launches BTL Collaterals Events ATL Artworks designing Loyalty Division Sales Records Marketing Finance Division Signing CEO notes Issues related to payments Preparin g PRs Keeping financial records Internship Report: Warid Telecom 15

4. 1.1. Segmentation and Strategy Division Warid Telecom has divided its segmentation and strategy division into five segme nts on the basis of their characteristics. Markets consist of buyers and buyers differ in one or more ways. They may differ in their wants, resources, locations , buying attitudes and buying practices. The core concept behind companies using marketing segmentation concept is to divide large homogeneous markets into smal ler segments that can be reached effectively and efficiently with products and s ervices that satisfy needs, wants, desires and trends of certain segment. Characteristics that govern segmentation and strategy development in Telecom ind ustry specifically mobile services according to a certain segment w.r.t Pakistan are Age Educational background Gender Income National, regional or other geographica l areas of origin Social class Religion Culture Behaviors Population Tele densit y in area to be segmented Now, the roles and responsibilities of different segments are to consider above characteristics and then to Internship Report: Warid Telecom 16

Process Flow in Marketing Department 1. Develop an idea that would satisfy the above considerations. The idea can be Development of a product or service; that idea is then shaped in the form of the product or services with the help of Products and Services department, I.T and Engineering departments to develop a product or service. Event to improve sales, public relations, brand awareness e.g. events such as Kabaddi Takkar Series bet ween Pakistan and India in collaboration of Pakistan Kabaddi Federation, Tape Ba ll tournament and Concerts. After getting the idea approved by the authorities by preparing a feasibility re port. The next step is to get documentation done for idea conversion costs. 2. Idea Conversion Costs that note and getting it approved by the authorities. A fter getting the idea approved will be incurred in converting an idea into reali ty. This step includes developing a CEO note. CEO note is developed with the hel p of departments related to the project. 3. Artworks, TVCs elaborating the ideas are designed by the communications depar tment and then it is forwarded to marketing operations for execution of ideas. Sections of segmentation and strategy Division 1. Postpaid Segment Section Postpaid Segment is the one which includes individuals with good income and usag e more than that of prepaid customers. Postpaid customers Pay bill at the end of month depending on the service used. Internship Report: Warid Telecom 17

Pay specific amount in line rent every month, no matter they use service or not. Enjoy better range of value added services than prepaid customers. Postpaid Segmentation Section designs marketing activities to better satisfy the needs of postpaid consumers. 2. Masses Segment Section Masses Segment is the biggest segments involving most no of people. Masses segme ntation section develops marketing ideas and activities to perform, so that mass es customers enjoy maximum benefits. Consumers from masses segments use relative ly less. Masses customers Pay before using the service. Enjoy basic and VAS services Have less brand loyal ty in most cases. Ready to switch to other mobile services in case of cheaper services. 3. Female Segment Section Importance of role of females cannot be overlooked in this modern era. Thats why Warid Telecom has also developed females segment as a separate segment. The role of Female segmentation section is to develop ideas that would entertain female population in Pakistan. Currently ongoing Zem Baton ke committee Campaign promoted by Bushra Ansari is such an example. Internship Report: Warid Telecom 18

4. Youth Segment Section Youth drives a nation; similarly, youth is taken by cellular companies as a segm ent which can drive other segments as well and affect trends of customers of oth er segments too. If the youth is targeted in better way, lot of customers can be gained. Warid Floodlight Tape Ball tournament for youth segment is one of such examples. 5. Corporate Segment Section Corporate segment is niche segment which can be source of great revenue for orga nization. Corporate Segmentation section develops idea that can provide maximum support and facilities to their most profitable segment. Ongoing Black Berry Camp aign is one of its examples. Corporate segments are provided with Best possible VAS Better rates Security and Network Solutions Corporate Series for employees 4. 1.2. Marketing Operations Division Marketing operations is the part of marketing that is responsible for executing the ideas, turning scraps into whole and giving best possible finishing to the i dea. Marketing Operations slogan is we are those, who execute ideas. Warid Telecom has divided its marketing operations division into five parts and each part is responsible for carrying out its related tasks. Everything that is seen in marke t from retailer facias to wall chalking, event branding to billboards, pole sign s to panels, road branding to posters, banners to flyers, everything is done by operations. Artworks for the marketing collaterals are provided by the marketing communications. Any execution mishandled by operations team can result in failu re of great ideas. Internship Report: Warid Telecom 19

1. Retail Operations Section Retail operations include branding done at retail shops; that includes facias, a vailability signs at shops e.g. Easy load Availability. Retail operations is responsible for Spotting the retail shops Finalizing the terms and conditions for contracting In stalling Facias / Retail branding 2. New City Launches Section A new city launch refers to the branding or marketing promotions whenever Warid has launched its service in a new city. The responsibility of this section is to create prelaunch hype and attraction once a service is launched. Branding optio ns that are used so often are City Branding Wall Chalking Shutter Paints Retail Fascias Events 3. BTL (Below the line) Advertising Section Below the line advertising section of Warid typically focuses on direct means of communication, most commonly direct mail, e-mail, hoardings, gantries, billboar ds, pole signs, and traffic signs at prime locations to maximize response rates. Warid Telecom is a telecom company, so here direct mail and email cant be used e ffectively. In case of Warid Telecom; the focus is on use of Internship Report: Warid Telecom 20

Gantries Billboards Pole signs Sponsoring traffic signs Streamers Hoardings 4. Marketing Collaterals Section Warid focuses a lot on effective use of collate rals to create hype for campaigns and events. Marketing collateral, in marketing and sales, is the collection of media used to support the sales of a product or service. These sales aids are intended to make the sales effort easier and more effective. Warid has a well maintained collateral section in marketing operations division that is responsible for following collaterals supporting Warid promotions and ca mpaigns Tariffs Flyers Standees Posters Coupons Catalogues Visual aids Web content Brochures Leaflets 5. Events Warid not only participates in events but also organizes such events and activit ies that highlights its commitment to have good public relations, create brand a wareness, taking social responsibilities programs. Instances of such events incl ude Warid sponsoring OIC IT and Telecom expo and conference 2008, taking part in ITCN 2008. Internship Report: Warid Telecom 21

These events include sponsoring and organizing tournaments conferences parties seminars CSR activities 4. 1.3. Marketing Communications Division Marketing communications in Warid Telecom deals with artworks to be used in BTL & ATL advertising, then its execution and broadcasting in print and electronic m edia. Above the line is a type of advertising through media such as TV, cinema, radio, print, banners and search engines to promote brands. Major uses include t elevision and radio advertising, web and Internet banner ads. Marketing Communications division divided into two sub-divisions 1. ATL Section The ATL section of marketing communication comprises of team responsible for Preparing content for Artworks of compaigns TVCs MMR Newsletters Press releases for media Internship Report: Warid Telecom 22

Contacting with Electronic media including Televisons, websites and webzines for issues related to broadcasting TVCs and sponsorship Print media including news papers and magazines for placing advertisment of compaigns, giving press release s, sponsoring columns and special information such as sports events, special occ asion such as namaz timings, Iftar and sehri timings 2. Artworks Designing to be used in ATL and BTL The artwork designing section is responsible for providing artworks to be used i n ATL and BTL advertising. The artwork designing section Design artworks itself Outsource artworks to different artworks designing agenci es 4. 1.4. Marketing Finance Division Warid has a division in marketing department that is responsible for financial a ctivities incurred related to marketing promotions, campaigns, and events. It is not a big division; its main purpose is to act as interface b/w marketing and f inance departments. Marketing Finance is responsible for Signing CEO notes from authorities Preparing PRs Keeping financial records of co sts incurred Issues related to payments of vendors as per invoices Internship Report: Warid Telecom 23

4. 1.5. Loyalty Division Loyalty division of Warid Marketing Department designs marketing programs to ben efit the loyal customers that can be prepaid customers, but in most cases Post-p aid and corporate clients. Loyalty programs are structured marketing efforts tha t reward, and therefore encourage, loyal buying behavior which is potentially in benefit of Warid. Loyalty benefits can include loyalty card, rewards card, poin ts card, advantage card, or club card. Examples of such programs are McDonalds C ampaign. Loyalty division is responsible for Identifying loyal customers Designing marketing programs to benefit the loyal cu stomer Keeping up-to-date profiles of loyal customers: their buying records and patterns Carrying out regular campaigns for the post-paid and corporate clients Internship Report: Warid Telecom 24

4. 2. HR DEPARTMENT HR department is divided into two divisions responsible for 1. Recruitment Divis ion 2. Training and Development Division 3. Compensation and Benefits Division The above divisions are responsible for Ensuring smooth functioning and delivera bles pertaining to: Recruitment Process Interviews Candidate Assessment Training programs for employ ees Career Development programs Overall Management of HRMS and effective coordin ation with ERP for the deliverables pertaining to functionality of the system Ti mely issuance and record keeping of all salary related employee letters Timely m anagement of related and scheduled confirmations Posting of Status Change docume nts and maintenance of related records in HRMS and as a hardcopy. Timely executi on of Payroll and related reporting pertaining to payroll. Handling and manageme nt of smooth Payroll Operations & effective related query handling Management of operations related to existing Official Cell Phones (Write Offs, Roaming, etc) Handling of Attendance Management System Overall operations and management of pr ovident Fund Internship Report: Warid Telecom 25

Handling of Medical (OPD & Hospitalization) Handling of EOBI Handling of Life In surance data and premium payments Employee Payroll Taxation (Certificates, E-fil ling) & related queries Overall effective and up-to-date Leave Management Up to date supervisor Data in HRMS in correlation with existing org charts and reporti ng lines Timely issuance and management of SSHR (self service HR logins to emplo yees) Timely payment of internship stipends and up-to-date record of internships Posting of non-salary related information of employees in HRMS Employee visitin g card data verification through system & coordination Handling of employee adva nce requests, in coordination with Finance Execution and activation of new emplo yee joining benefits Status change related benefits handling and related executi on Issuance and record keeping of all non-salary related employee letters Verifi cation of Fuel Cards and entitlement based fuel limits in coordination with Admi n Timely conclusion of final settlement and clearance of resigned employees Pers onnel Management and up-to-date record keeping of all personnel documents in per sonnel files Overall management and handling of 3rd party account for NLI centra l employees Overall execution and management of 3rd party payroll country-wide Internship Report: Warid Telecom 26

4. 3. FINANCE DEPARTMENT Finance department of Warid Telecom is accountable for all the issues related to financial transactions no matter it is managerial accounting or financial accou nting. Finance department of Warid Telecom deals with issues related to Financia l Accounting, Fixed Assets, Accounts Payable, and General Ledger maintenance and treasury control. So, finance department is divided in two divisions according to matters dealt 4. 3.1. Financial Accounting Division Financial Accounting Division of Warid Telecom consists of four sections Operations Section Financial accounting related to operations. Operations include the financial iss ues related to franchises operations. Fixed Assets Section Fixed assets division of Warid Telecom looks after the fixed assets of Warid tel ecom. Fixed assets are very important for every organization because fixed asset s tell the worth of the company. Accounts Payable Section Accounts payable division of Warid telecom looks after the liabilities to be pai d. Accounts payable is very important for better credit rating of a company. Internship Report: Warid Telecom 27

General ledger Section General Ledger division is responsible for developing T-accounts which specify d etail of each account separately, so that Treasury Control Section Treasury Control Section looks after the finances, controls the budgets and inve stments made by country from treasure. 4. 3.2. Managerial Accounting The division deals with the accounts management and coordinates with the financi al accounting division. Internship Report: Warid Telecom 28

4. 4. SALES & CUSTOMER SERVICES DEPARTMENT Sales and customer services department of Warid Telecom consists of divisions in charge of; Contact and Support Centers Credit & Collection Customer Service Operations Dire ct Sales Telesales Personal Selling 4. 5. ADMINISTRATION DEPARTMENT This is a centralized department responsible for various administration and gene ral supervision tasks which include: Local Government Relations Office Maintenan ce and management Office Building Locations / Civil Works Coordination with Arch itects / Contractors Transportation office Internship Report: Warid Telecom 29

4. 6. PRODUCTS AND SERVICES DEPARTMENT: Products and services department of Warid Telecom consists of two divisions 1) Voice related products & services division 2) Data related products & service s division 4. 7. PROCUREMENT AND LOGISTICS DEPARTMENT: This department is in charge of all Logistics and Procurement-related matters. 4. 7.1. Procurement Division Procurement division of Warid Telecom is responsible for all the matters related to vendors. Procurement division of Warid telecom comprises of following divisi ons Vendor Profiles management Inbound logistics Outbound Logistics 4. 7.2. Logistics Division Logistics Division of Warid Telecom consists of five sections that are responsib le for getting the right product to the right customers in the right place at th e right time. Warid considers Effective logistics as a key to winning and keepin g customers. Cost Management Section Warehousing Section Inventory Management Se ction Internship Report: Warid Telecom 30 Order Processing Section Transportation section

4. 8. LEGAL AFFAIRS AND CONTRACT MANAGEMENT DEPARTMENT Legal Affairs and Contract Management department of Warid Telecom looks after al l corporate and legal affairs and the legal implication of all the transactions that are carried out by Warid Telecom nationally and internationally. Legal Affa irs and Contract Management Department of Warid Telecom comprises of two divisio ns; 1. Legal Affairs Division 2. Contract Management Division Above divisions are responsible for legal issues related to Financial institutions Procurement Leasing Property matters prizes of marketing campaigns winners Media contracts International agreements Litigation (court cases) Contract Manag ement Legal department also oversees all the regulatory and legal implications of PTA and other governmental authorities. 4. 9. AUDIT, RISK & CORP. GOVERNANCE DEPARTMENT Audits are carried out in every organization to ensure that there is check and b alance and budgetary control on expanses of each department. Audit and Risk Serv ices Department of Warid Telecom is responsible for Internship Report: Warid Telecom 31

Check and Balance Expanses Risk Services Corporate Governance as per Government obligations CSR activities 4. 10. INTERNATIONAL BUSINESS DEPARTMENT International Business department of Warid Telecom deals with the issues regardi ng International Roaming Globalization Using methods and ways to meet global standa rds Comparing already existing system with international systems Liaison with fo reign vendors according to the needs of different departments Liaison with Warid telecom in other countries 4. 11. PUBLIC RELATIONS Public Relations Department of Warid Telecom is responsible for establishing and maintain positive understanding, good image, between a company and its publics. Such publics include customers, shareholders, employees etc. Internship Report: Warid Telecom 32

4.12 OPERATIONS AND PROJECT MANGEMENT DEPARTMENT This department is responsible for ensuring business and site acquisition as wel l as site building, fraud management, revenue assurance and such other issues re lated with the successful completion of a quality project within required time. 4. 13. GOVERNMENT RELATIONS DEPARTMENT This division is responsible for maintaining an effective liaison of Warids corpo rate policy objectives and activities with the Government Agencies, Telecom Oper ators, Regulatory Bodies, Electronic and Print Media. Internship Report: Warid Telecom 33

5 THEORIES IMPLEMENTATION WARID TELECOM Internship Report: Warid Telecom 34

5. 1. IN DEPTH SWOT ANALYSIS In order to find what are the strengths, weaknesses, opportunities and threats f aced by Warid Telecom, Paksitan. How can they increase their market share in Pak istan Cellular industry? Following is the SWOT Analysis of Warid Telecom Pakista n.. Strengths of Warid Superior product quality for customers Better customer relationship than competi tors Extra features and services Commited and efficient staff Strong financial b ase Products innovations ongoing Good reputation among customers Good packages a ccording to the target market Management is rational and understanding thesituat ion Low price as compared to quality provided Weaknesses of Warid Less time in market as compared to major competitors Less coverage as compared t o majer competitors Less experienced employees than competitors Seth organiation N ot able to capitalize on start Internship Report: Warid Telecom 35

Opprortunities for Warid A developing market Mergers, joint ventures or strategic alliances Could develop new products Extension to overseas Decline of major competitors Technologically better environment New launches More customers after relaunch Threats for Warid Emerging companies in market Unstable political conditions New companies in mark et High public expectations Low prices of competing brands Internship Report: Warid Telecom 36

5. 2. COMPETITIVE STRATEGY AND COMPETITIVE ANALYSIS Comparative Industry Analysis (BCG Matrix) BCG Matrix of cellular companies in Pakistan BCG Growth-Share Matrix High Market Growth Mobilink Warid Tel/ Telenor Zong Low Market Growth Ufone High Relative Market Share Low Relative Market Share 9 Cellular Market Share by BCG matrix Mobilink is the company which is associated with Stars in BCG matrix with high market growth and high relative market share. W arid Tel and Telenor are the GSM cellular companies which are associated with Que stion marks in BCG matrix as it exhibits high market growth and relatively low re lative market share. Ufone is the GSM cellular company with low market growth an d high relative market share thats why it is associated with Cash Cows in BCG matri x. Zong is the GSM cellular company with low market growth and low relative mark et share thats why it is associated with Dogs in BCG matrix. Internship Report: Warid Telecom 37

5. 3. PEST ANALYSIS Political Pakistan Telecommunication Authority has been striving hard and trying its level best to create level playing field in the Cellular Mobile industry. Politically , Pakistan is an unstable country where Government decisions and regulatory init iatives matter a lot Social During the formation of marketing strategies, Warid looks after a lot of factors . Deep study of local culture and social setups is also one of the major factors which account much in successful strategy formation of Warid. Varying types of consumer behaviors are found in different societies. The study of society helps to understand the consumer behavior and in turn assists Warid to improve their m arketing strategies by understanding issues like: Internship Report: Warid Telecom 38

The way how consumers think, feel and select a cellular connection The psycholog y of how consumer is influenced by culture, family and social setups. As Pakista n is an Islamic country and people are very strict in case of Islam any thing ag ainst the philosophy of Islam on either print or electronic media are treated as against Pakistan. Most of the people dislike anything extra-ordinary or something which sabotage t heir culture or subculture. Companies who are targeting upper-end of market most ly published and aired their advertisement in English language. In metropolitan cities women are doing work along with their other responsibilities but other th an metropolitan cities it is difficult for women to convince their parents and s pouses for work. Understanding of these issues helps to adopt better strategies by taking the con sumer into consideration. By understanding the consumer, Warid makes a more Info rmed decision as to which strategy to employ. Economic Factors In Pakistan, Marketers should consider long term and short term state of a tradi ng market. Inflation is controlling by state bank and under strict eyes but unem ployment rate is going up and up with the increase of level of poverty. Internship Report: Warid Telecom 39

Technological Factors Companies have technology with which they can compete in the Pakistan and now co mpanies are investing in their infrastructure to not only expand but also to upg rade their existing structure. Internship Report: Warid Telecom 40

6 PRODUCT OFFERINGS WARID TELECOM Internship Report: Warid Telecom 41

6. WARID OFFERINGS Warid puts a great focus on development of its product according to the customer demand and satisfaction. Warid Telecom in Pakistan offers two main products tha t are 1. Zem Prepaid 2. Warid Postpaid 6.1. Zem prepaid Zem Prepaid is the service for which customer has to pay in advance for services which he/she is going to use. Zem Prepaid is offering two kinds of services. A. Voice related services B. Text related services 6.1. A Voice related Zem Prepaid Services Voice related services include communication services which are associated with the transfer of voice. When Warid started its services there were two leading GS M cellular companies, one was Mobilink and the other was Ufone. Mobilink was the main market leader and Ufone was the successor in the Pakistan. Then the main c hallenge for Warid was to attract customers towards it with the help of such ser vices that will be exciting and attracting enough to move customers from Mobilin k and Ufone. At that time, Warid used the offers and services such as Friends n Family Numbers, low calling rates n good voice quality as compared to Mobilink. Internship Report: Warid Telecom 42

As the time passed, Warid got a great feedback from public due to its exceptiona l services. At the end of 2005, Warid shifted its focus on every segment of the market from the rich market to middle and low level customers. In this regard, t hey introduced five Calling Plans that were Above five calling plans were used for about one and half year, and then checkin g completely the response of people towards it, Warid has continued to use three calling plans Zem 1 second, Zem 30 second (now replaced by Zem LCR,30 seconds) of above five and removed two plans that were Zem 321 and Zem 12 to 9). Calling plans Zem 1 second plan offers customers billing to in seconds. Means that u have to p ay for exactly what you have talked. It focuses on the small scale users who wan t to have tight control over their finance and balance. Zem 1 second plan genera lly targets students, shopkeepers and very small scale businessman. 1 second bil ling rates is higher as compared to other calling plans of Warid. Zem 1 Second T ariff Airtime Friends & Family (On-Net) Friends & Family (Off-Net) On-Net (Warid to Warid) Off-Net (Landline) Off-Net (Other Mobile) Charges 0.02 0.03 0.04 0.05 Messaging On-Net (Warid to Warid) Off-Net (Other Mobile) International MMS Char ges 0.50 1.00 5.00 3.00 Internship Report: Warid Telecom 43

Zem Lowest call rate 30 second plan offers 30 second billing to customers means that you have to pay for 30 seconds (if you have called b/w 1 to 30 seconds) , t hen for the next 30 seconds (b/w 30 and 60 seconds) and so on. It focuses on the General public which shows moderate focus on their finance. Although 1 second i s pity useful but 30 seconds is better when it comes to billing as calling rates in 30 second plan are relatively cheaper as compared to 1 second plan. Zem LCR is modification of Zem 30 second plan and it is very economical as compared to 3 0 seconds. Zem Lowest call rates 30 Second Tariff Airtime Friends & Family (On-Net) Friends & Family (Off-Net) On-Net (Warid to Warid) Off-Net (Landline) Off-Net (Other Mo bile) Charges 0.45 0.75 0.75 0.85 0.85 Messaging On-Net (Warid to Warid) Off-Net (Other Mobile) International MMS Charges 0.50 1.00 5.00 3.00 Zem 60 second plan offers 60 second billing to the customers means that you are charged by Warid every time for 60 seconds whether you have talked for only 1 se cond or even 60 second. It generally focuses on the relatively large scale users . 60 seconds calling plan is cheaper than the 1 second and 30 second plan. Zem call rates 60 Seconds Tariff Airtime Friends & Family (On-Net) Friends & Fam ily (Off-Net) On-Net (Warid to Warid) Off-Net (Landline) Off-Net (Other Mobile) Charges 0.45 0.75 0.75 0.85 0.85 Messaging On-Net (Warid to Warid) Off-Net (Othe r Mobile) International MMS Charges 0.50 1.00 5.00 3.00 Internship Report: Warid Telecom 44

Call related Zem features CLI (Caller Line Identification) Conference Calling Call Waiting & Call Hold Cal l Divert 6.1. B Text related Zem Services Warid at the time of its launch provided text related services but these service s were very much same in rates and quality as that of its competitors. e.g. in o rder to activate GPRS and MMS you have to get it activated at high rates, SMS ra tes were also higher at that time. Bust as the time passed they have lowered the ir SMS, MMS and GPRS rates to extremely cheap rates. Warid has introduced follow ing SMS, GPRS and MMS related packages for those who love to text and use web. Text Related Zem Packages ZOOM Zoom is one of the product offered by WARID with which you can send 25 sms/ mms pe r day with subscription fee of Rs 3/day. Zoom focuses on the sms lovers with low income such as students and general public in Pakistan. ZOOMU ZOOMU offers services with which you can send unlimited short SMS/MMS at deduction of Rs. 7 /day from your balance. Zoomu targets the customers with large social circle who want to be connected with their friends and relatives. Internship Report: Warid Telecom 45

SMS CRAZE Whether texting, sharing pictures or browsing the internet, you simply cant get a better deal. Zem brings the only messaging and internet package in the market. With SMS Craze, subscribers can get up to 2,000 SMS/MMS to any number across Pak istan & 10MB of Mobile Internet for a monthly subscription of Rs.150 inclusive o f all taxes. INFINITE CRAZE If you have the craze to talk long hours at night, Zem brings you INFINITE CRAZE , the best night-time package in Pakistan. By subscribing to Infinite Craze you can now make unlimited free calls, from 12:00 a.m. to 7:00 a.m., to any one Wari d number and you can also send unlimited free SMS & MMS to any number across Pak istan. There is no monthly restriction of selecting your special unlimited infini te number. You can change your number daily or hourly and talk to a different fri end for hours every night. SUNDAY CRAZE If you are busy all week and want to catch up with friends & family on Sundays, Zem brings you Sunday Craze, the best friends & family offer. By subscribing to this offer you can now make unlimited FREE on-net calls on Sundays, from 8:00 a. m. to 12:00 p.m. ZEM NITES Zem Nites is a package tailored for late night callers. Under this package the s ubscribers get unlimited calls to any on-net number from 11pm to 7am for a daily charge of Rs. 24+tax Internship Report: Warid Telecom 46

Text Related Zem features SMS MMS GPRS Instant messaging Latest Marketing Campaigns of Zem Prepaid Internship Report: Warid Telecom 47

6.2 Warid postpaid Warid post paid connection is associated with Royalty. Post paid subscription is also called a billing connection. In this type of a connection, you can avail t he services of a cellular connection first and pay for the usage at the end of t he month. On consistent and regular payment and high usage pattern you could win yourself the opportunity to enjoy exclusive loyalty and frequent user facility provided by Warid Telecom. Keeping in mind our brand philosophy, Warid Postpaid is a name that depicts class and sophistication. Warid Postpaid that defines com mitment and satisfaction to the customers. Warid Postpaid is offering two kinds of services. A. Voice related services B. Text related services 6.2. A Voice related Warid Postpaid Services Warid postpaid when started at launch was called Zahi postpaid. Zahi means royalty. Before relaunch as Warid Postpaid, Zahi was the warid postpaid and it offered five calling plans to the mobile users. These plans were After Relaunch, Zahi Postpaid was replaced by its generic name that was Warid Po stpaid. After relaunch as generic name Warid postpaid, Warid also revised tariff s for the postpaid calling plans. Now the Warid Postpaid calling plans are Internship Report: Warid Telecom 48

Warid postpaid 150 calling plan is postpaid package with monthly line rent of 15 0. It is targeting the relatively low income customers. Warid postpaid 500 calling plan is postpaid package with monthly line rent of 50 0. It is targeting the middle class income and family customers. Warid postpaid 1500 calling plan is postpaid package with monthly line rent of 1 500. It is targeting the professional businessmen. Internship Report: Warid Telecom 49

Warid postpaid 2500 calling plan is postpaid package with monthly line rent of 2 500. It is targeting the rich class and businessmen doing business at relatively large scale. Warid postpaid 4000 calling plan is postpaid package with monthly line rent of 4 000. It is targeting the high class business executives and rich families. Voice related Warid Postpaid Features Conference Call Call Waiting & Call Hold Call Divert Voice Mail 6.2. B Text related Services Warid Postpaid offer text related services which are less modified over time and mostly standard text service charges are applicable on warid postpaid text serv ices. Text related package ZOOMU SMS for a subscription of Rs.210 + tax for 7500 SMS/MMS Text Related Warid Postpaid Features Short Messaging Service (SMS) Missed Call Alerts Picture Messaging & Multi-media Messaging Service Mobile Internet Internship Report: Warid Telecom 50

Latest Marketing Campaigns of Warid Postpaid Bill Payment via Scratch card Bill payment is as easy as 321 Bill by Email Now you can receive your bills through email! Connectivity with Convenience Be a part of the largest Postpaid cellular base in Pakistan Warid Postpaid Corporate Briefcase We understand your business lifestyle Internship Report: Warid Telecom 51

7 MARKETING STRATEGIES AND PRACTICES WARID TELECOM Internship Report: Warid Telecom 52

7. MARKETING: STRATEGIES AND PRACTICES 7.1. Marketing Environment Competition Pakistan is a highly competitive market. There are four GSM cellular companies i n Pakistan right now that are Mobilink, Ufone, Telenor and Warid. The major brand in Pakistan is Orascoms Mobilink, which as of April 2008 had a ma rket share of 37 percent. Mobilink initiated operations in 1994, and for the lon gest time reaped the reward of being a first-mover in the country using GSM tech nology. , and continues to be a pioneer in branding with its packages: the Jazz Prepaid and the Indigo Postpaid connection. The company was the first to experim ent with a female model as a brand ambassador on its ATL campaign. Pakistan Lead ing super Models such as ZQ, Sunita Marshal, and Iman Ali all remained part of t heir campaigns. Mobilinks greatest competition came in the form of Ufone, a cellular service bran d introduced by the then state owned PTCL in 2001. The brand immediately began b y focusing on the customers, launching a campaign that culminated in consumers d esigning the brands initial logo. Ufone further refined its strategy by 2005 when , under the new ownership of Etisalat, it was re-launched with a new logo, which was a reflection of the increasing competition from the likes of the Norwegianbased Telenor, and the UAE-based Warid Telecom. Ufone has market share of 21% ac cording to April 2008 statistics. Internship Report: Warid Telecom 53

Telenor began operations in Pakistan in 2005, and started with a pre-launch nati onwide teaser campaign that revolved around "something exciting" making its way to Pakistan. In only three years, Telenor had claimed 20 percent of the market s hare, almost on par with Ufones 21 percent. Warid Telecom, with a current market share of 17 percent, also got launched in t he same year with a beautifully shot "slice-of-life" TV ad. Unfortunately, Warid wasnt able to capitalize on its great start, and hasnt been able to position itse lf as a premium brand in the industry; rather, its attempt to characterize itsel f as a service provider that offers the best rates has led Warid to be associate d with cheap affordability. Zong, formerly known as Paktel but re-launched this year under China Mobile, too k a different approach. Zong stepped into the fray with an expansive launch TV a d and followed it up with a campaign that took on the other telecom brands mark eting strategies. Uf one 21% Zong 5% Warid 17%

Mobilink 37%

Telenor 20% Technology & Marketing Financials Massive budgets that the brands can call upon have led to Use of modern technolo gies to bring better quality network, voice clarity and service for the customer s Internship Report: Warid Telecom 54

Immense advertising, as brands launch campaigns with elaborate song and dance TV ads that have nothing to do with the brand s personality, or emotional and func tional attributes Develop Telco industry as one of the major contributing industries, directly con tributing about 2% in Pakistans GDP Legal Minimum legal restrictions for about a decade had made Pakistan a highly competi tive market, because consumers are not bound by long-term contracts to cellular service companies. Rather, the consumer simply needs an ID card photocopy to set up a connection, or switch to another provider. The consumer has the option of a post-paid monthly billing connection, which is preferred in the professional s egment, or the popular-among-the-masses pre-paid connection. To add to the consu mers benefit, mobile phone portability is also available, which allows one to ret ain the same phone number regardless of changes in cellular service. Current situation in Pakistan has made Govt. to think on legal control on issuan ce of connections because most of the terrorism activities were done with the he lp of connections that were either on fake or un-registered i.d cards. So new Go vt. policy will encompass policies that will ensure that connections per i.d car ds are controlled, NADRA verification will be compulsory before a connection is delivered to the customer. Recently Govt. has ordered to make about 8.8 million connections that were not in use for a good period of time, either unregistered or registered on fake i.d cards. Demographic Trends With so much potential still in the Pakistan telecom industry, it will be diffic ult for telecom brands to refrain from taking the easy way and simply screaming their way into Internship Report: Warid Telecom 55

consumers consciousness rather than building timeless and unforgettable brands. A t this point of time, Telco companies are tempted to go for short term gains rat her than long term benefits. The fact remains that until the consumer can take h ome something from the personality or the lifestyle of the service, he/she will not remain a loyal user and defender of the brand. 7. 2. Target Market 7.2. A. Consumer or industrial In Telecom Industry, it is not possible to say that types of products offered by Warid are consumer or industrial. The target market is almost all the country. Target market always consists of different segments for those Warid has designed its products, packages, plans and services. The main thing that differentiates different telecom companies is how they divide their target market into different segments and des ign their products, packages, plans and services to cater voice of customers fro m each segment. Warid develops its products and services according to segments t hat are Masses (Prepaid) Youth Post-paid Corporate Female Internship Report: Warid Telecom 56

7.2. B. Buying Characteristics Buying characteristics of above segments will be discussed one by one Masses Segment Masses Segment is the biggest segments involving most no of people. Consumers fr om masses segments use relatively less. Masses customers Pay before using the se rvice. Enjoy basic features and value-added services. Have less brand loyalty in most cases. Ready to switch to other mobile services in case of cheaper service s. Youth Segment Youth drives a nation; similarly, youth is taken by cellular companies as a segm ent which can affect trends of customers of other segments a great deal. There i s craze among youth in Pakistan to talk with their friends, spot new friends, as well as keeping in contact with their families. If the youth is targeted in bet ter way, lot of customers can be gained. Youth is mostly the prepaid user. Postpaid Segment Postpaid Segment is the one which includes individuals with good income and usag e more than that of prepaid customers. Postpaid customers Pay bill at the end of month depending on the service used Pay specific amount in line rent every mont h, no matter they use service or not Internship Report: Warid Telecom 57

Enjoy better range of value added services than prepaid customers Corporate Segment Corporate segment is niche segment which can be source of great revenue for orga nization. Corporate segments are those who use services in bulk Affect trends of their primary groups and social circles. Post-paid users Mostly white collar cu stomers provided with Best possible VAS, Better rates, Corporate Series for orga nization employees, Security and Network Solutions Female Segment Importance of role of females cannot be overlooked in this modern era. Love to t alk Mostly dont compare Telco services to their cost 7.2. C. Market Potential Currently we have a population or over 17 million and if we exclude approximatel y 20% relatively extreme poor population and 20% children (population below the age of 8 years), we get a potential target market of about 97 million people. It is however, widely argued that poor are more inclined to avail telecom facility which in turn increases their income while reduces their business input costs, and in that case potential target market increases to more than 110 million peop le. So far cellular mobile companies have grabbed only 63 million of their poten tial target market, which is only 61% of their Internship Report: Warid Telecom 58

potential target market. If we exclude 15% users who have multiple mobile connec tions and those connections that are recently switched off with order of Govt, t he cellular mobile operators access comes to about 48% of potential market. So i t can be said that there exists a promising scenario for the existing and new te lecom entrants. 7. 3. Product Positioning Mobilink as a first mover in Telco industry in Pakistan has always remained inno vative. It has always tried to communicate an image of modernity and newness ove r the years. Ufone immediately began by focusing on the customers. Ufone further refined its strategy by 2005 when, under the new ownership of Etisalat, it was re-launched w ith a new logo, and a colorful campaign that was a reflection of the increasing competition. Ufone targeted teenagers and the youth with its pre-pay package. Upon launch, Telenor targeted consumers dissatisfaction with existing cellular se rvice brands, and claimed that Telenor was the "Smart Call" for consumers. Warid positioned itself around simplicity and subtlety, and attracted subscribers mor e through word of mouth about its service quality than with advertising. Zong po sitioned itself as a company that encourages consumers to be bold to express the mselves in whatever way they choose. Its slogan Sab Keh Do is truly built on this positioning. 7. 4. Product 7.4. A. PLC Stage Warid Telecom can be currently considered at growth stage in PLC. It has 18% mar ket share in Telecom market. Friends and family culture of Warid is increasing a nd it is Internship Report: Warid Telecom 59

surely the choice of new generation. Marketing has been separated as an independ ent department this year. So there has been certainly a difference in marketing strategies and campaigns. Surely, much more can be expected of Warid in years to come. 7.4. B. Classifications Warid Telecom offers Mobile Connections. Broadly classified the connections are either pre-paid or post-paid. In a country like Pakistan, where there are far le ss legal requirements to fulfill. This product can be classified as shopping pro duct because its purchase is less frequent, there is much planning and shopping effort, brands are compared on price, quality, rates, basic and value added serv ices. There is selective distribution in fewer outlets. Options like personal se lling, advertising, sales promotion is used by Warid itself, its franchisees, an d retailers. 7.4. C. Core/ Augmented products The core product in case of Warid Telecom is prepaid and post-paid connections t hat must offer core benefits that are calling and sms features. The augmented pr oduct or services in this case are value-added services including LBS (Location based service), Song dedication, Ring tone download, GPRS, bundle services plans and much more. 7.4. D. Packaging and Labeling In case of mobile connections, which are more considered as services than a prod uct; there is no certain packaging or labeling. There are two logos that are use d Zem prepaid- logo for prepaid campaigns Warid Generic- Logo for post-paid camp aigns. Internship Report: Warid Telecom 60

Life ka network Zem prepaid Above are three basic logos that are used according to the requirements. 7.4. E. Warranties and Services In case of mobile connections, there are no such warranties given in written. Bu t it is actually the product which is purchased by customer if he/she has trust on that company, product and services provided. If the company is not able to me et the customer expectations, then it results in huge losses to company as it is not only the specific customer that is leaving but there are lot of chances tha t customer will spread bad word of mouth about the company and its products whic h will result in heavy losses. 7. 5. Distribution When Warid was launched, its target customers were middle class and rich class. At that time, Warid used both demand-push and demand-pull strategies. Means, they placed most of their prepaid and postpaid connections mostly at their Franchises and Sales Centers, and placed very less amount of connections in ordinary outle ts. In this way, they were able to control the supply of Warid connections in th e Market. By controlling the supply in the market, they strategically increased demand for their product. Internship Report: Warid Telecom 61

For most of the last quarter of year 2005 and beginning of year 2006, they used the same strategy. They at the middle of 1st quarter of year 2006, shifted their strategy to demand pull strategy, then onwards the demand for their product is increasing. W arid has now adopted strategy of focusing every segment of the population so now they have placed their products at places that will facilitate the mobile users . These places include PCOs, Bookshops, Mobile shops etc. Their customer care centers are also in easy reach of customers. Warid s Custome r Service division functions on the premise of pleasing and satisfying their val uable customers, resolving their problems and addressing their queries. Their Co ntact Centre is equipped with the latest technology and its staff is trained to inform, educate and help customers in the best possible way. 7.5. A. Market coverage Warid covers major parts of country, but it still has lot to do in this aspect a nd market coverage can be regarded as the area where Warid should work on. 7.5. B. Distribution Channel Structure In telecom industry, the marketing channel used for distribution by all the cell ular companies is indirect marketing channel. The distribution of Warid products to the final customer follows the following indirect marketing channel Internship Report: Warid Telecom 62

Warid Company Warehouse Business Centres Consumers Wholesalers/ Retailers Stands for Dispatches to Franchises Stands for Channel used 7.5. C. Logistics/physical distribution Production/Retailer/ Vendor to Company ---- Inbound Logistics Company to final c onsumer ---- Outbound Logistics Production Suppliers Vendors Warid Company Warehouse Business Centres Consumers Retailers Wholesalers/ Retailers Franchises 7. 6. Pricing Warid used its pricing strategies as a tool to gain competitive edge over their rivals. Their pricing strategy was such that helped them to differentiate their products from their Internship Report: Warid Telecom 63

competitors. Pricing is the only element in the marketing mix that produces reve nue: all other elements represent costs. Price is also one of the most flexible elements of the marketing mix. Unlike product features and channel commitments p rice can be changed quickly. Warid, considering the importance of pricing factor in marketing mix gives very much importance to pricing. Warid pricing strategie s over time span is briefed as under Pricing strategy Pricing Strategy of Warid at the time of Launch to Mid 2007 When Warid started its services in Pakistan, Warid was offering more value and q uality to customer so rather than quickly reducing their prices in order to comp ete with their competitors, they convince their buyers that their products are w orth a higher price. Warid took care that their pricing policies should be custo mer value oriented rather than too cost oriented. At start, Warid used both deman d push and demand-pull strategies in order to penetrate in the market. They intro duced their services at relatively cheaper rates than the market giant but not t oo less as the quality they were offering was far better. Their innovative prici ng strategies such as 30 second billing, 1second billing helped them to capture a huge market in beginning. Pricing Strategy of Warid from Mid 2007 to End 2008 Currently, Warid pricing strategies focus on better value and cheap affordabilit y for their segments according to their needs. Warid calling plans such as lowes t call rates for the masses (prepaid segments), better designed cheaper postpaid plans for the post-paid segment, best quality for the corporate segment, and be st possible plans for the youth segments as per their requirement. Internship Report: Warid Telecom 64

Discounts/Allowances Usually there are no such discounts and allowances in this type of Industry espe cially for prepaid segment. Yet being specific, there can be discounts and allow ances for Corporate Clients Special events pricings such as expo, matches, shows etc. Post-paid clients 7.7. Promotion Today promotion is considered as a very important tool in marketing activities. The key feature of the Warids promotion strategy is that they have designed all o f their promotional activities keeping in mind the culture and traditions of the country. Even before they started operations, they started promotional activiti es. They developed a curiosity among the people even when they had not launched their products and services through the use of both electronic and print media. The promotion activities they do are consumer promotions Trade promotions Business promotions Sales force promotions Their slogan Be heard and we care became most popular among general public. Now it i s the new slogan after Re launch Life ka Network that has gained lot of popularity just in 3 months of its birth. Now lets have a look at different ways, Warid is promoting its brand and its products. Internship Report: Warid Telecom 65

ATL Advertisements on electronic media such as Internet, Television, and Radio. ATL Advertisements in print media such as newspapers, journals, brochures, and m agazines. BTL Advertising Sponsoring different sports activities such as they ha ve sponsored Pak-India Hockey Challenge 2005 and Pakistan Open Squash Tournament this year. By arranging cultural events such as Basant Festival 2006 By sponsor ing different musical programs They have a contributed a great deal in relief ac tivities after the October 8th earthquake Warid is contributing in educational a ctivities in Pakistan such as they are awarding scholarships t the needy and des erving students in GIK Institute. By opening franchises in different cities at d ifferent locations to facilitate the customers. Main Events Sponsored by

Main Promotion events Warid did after Launch 17thMay, 05- Warid Telecom main sponsor on World Telecom Day, Lahore. 4thJune 5- Warid Telecom main sponsor of Fashion Show in collaboration with Faisalabad S chool of Fashion Design (FSFD). 9th 12th June, 05 Warid Telecom participated in Dawn Lifestyle Exhibition, Karachi. 22nd 29th July, 05 Warid Telecom co-sponsor of All Pakistan Open Squash Championship, Karachi. 9th 11th August, 05 Warid Tel ecom participation in ITCN Conference, Karachi. 13th 19th August, 05 Warid Telec om main sponsor of HSY Essentially Pakistan Fashion Show on Independence Day in La hore, Karachi and Islamabad. 2006- Warid cup hockey tournament, Pakistan v/s Ind ia Internship Report: Warid Telecom 66

2006- Warid Pakistan Open Golf Championship 2006- Warid Basant Festival 2007- Me ga Musical Concert 2007- Dawn Life Styles Expo 2006, 2007, 2008- ITCN Asia Confe rence and Exhibition 2007- Boondh Album of Jal, The band August, 2008- Zem Kabaddi Takkar Series b/w Pakistan and India July 21-23,2008- OIC IT & Telecom expo and Conference 2007, 2008- Warid Floodlight Tape ball Cricket tournament 2007,2008Warid Gymkhana Golf League 2008-SLUMS (Sports at Lums) Beside these activities there are many promotional activities that Warid is unde rtaking. But the key feature of all their promotional activities is that they ar e trying to relate or associate themselves to the people of the country. All the ir promotional campaigns include the element of sharing and caring of their cust omers. Another key feature of their promotional strategy is that they believe in transparency and they dont hide anything from their customers such as announcing the rates clearly in their promotional activities. Internship Report: Warid Telecom 67

8 HUMAN RESOURCES STRATEGIES AND PRACTICES WARID TELECOM Internship Report: Warid Telecom 68

8. WARID HUMAN RESOURCES: STRATEGIES AND PRACTICES 8. 1. Recruiting This is a process of seeking job candidates. Warid gives advertisements in the n ewspaper and on the companies website. Interested applicants submit their CVs to the Human Resource Division via mail or email. Once they receive the CV, they wi ll assess it according to their internal policy and requirement of the job. Sele ction criteria may involve different steps with respect to the position they are applying for. There can be one to one interview with concerned Division head, R ecruitment Manager and/ or a panel interview, or there can be series of intervie ws. Special process of a preliminary test might be carried out, depending upon n ature of the job. . 8. 2. Orientation When a new employee joins Warid, orientation is given to him/her. He is introduc ed to the office and to the other employees. The department head gives out the o rientation. In orientation he gives a detail introduction that how operations ar e being performed in Warid, and how things work in a department. When 5 new empl oyees are hired, they are given in-house orientation where information about the concerned department is delivered to them. The employees are also sent to the H ead Office, and they are asked to spend a whole day there, so that they get to k now how things work there. 8. 3. Employee Training During the orientation of the employees they are told about their career plannin g. Employees are told about the steps taken to develop them, they are told about the Internship Report: Warid Telecom 69

training process they have to go through. And they are also told where they will see themselves in the next five years. Warid has got a training contract with E tisalat. In which they send their employees to UAE for training. Warid employees go to England, Australia, Europe and New Zealand too for training. Recently an IT conference was held in USA, and 5 employees of Warid were part of it. Warid h as got conferences and training session for their employees in Royal Palm, where they spend the whole day. Warid has a policy for its employees to sign the bond before they are sent for training. In this bond, they ask the employee that the y can not leave Warid for a year or two (depending on the training cost) after t he training is complete. And if they do so, then they have to pay the training c ost that Warid has incurred. 8. 4. Performance management system Warid Telecom gives immense importance to performance management system. Employe es are given annual appraisals and increments. Depending on how good or bad an e mployee is performing keeping that in mind these increments are awarded. The sup ervisors discuss the appraisal form with the subordinates. And tell them where t hey need to work hard. This process takes place once in a year. 8. 5. Rewards and Pay Plans Rewards are generally paid in the form of increments. Bonuses are given after ev ery one million customers. All the employees are given this bonus. Currently War id has seven million customers. Warid is known to be one of the best pay masters in the industry. Warid believes in pay for performance and is an ideal place fo r people with can do attitude. Warid is continually working towards making its pro cesses performance and cost effective and is working in line with Best Practices . Internship Report: Warid Telecom 70

8. 6. Employee Benefits Warid has a very sound and a systematic plan for the benefits for its employees. The strategy ensures that the employees are not only satisfied but also motivat ed continuously in order to achieve maximum productivity. Warid has an unmatchab le employee benefit plan. Some of the major benefits are as follows. LFA (leave Fair Assistance) Provident Fund Leave Encashment Medical Benefits Ins urance Leaves Allotment Internship Report: Warid Telecom 71

9 CONCLUSIONS AND RECOM RECOMMENDATIONS CO WARID TELECOM Internship Report: Warid Telecom 72

9. CONCLUSION AND RECOMMENDATIONS With some changes at higher level including advisor to CEO, G.M Marketing much h as improved this year in Warid Telecom market rating. Warid Telecom certainly ha s potential to capture good market and to give tough time to the competitors, bu t for this at least following steps should be taken Warid telecom is offering ch eap rates for its prepaid and postpaid customers as compared to its competitors but the main area they are lacking is the way to communicate it to customers. Seth Culture should be avoided. Network should be enhanced to much more cities. There should be consistency of brand ambassadors, jingles, colors and graphics i n their print and electronic media ads to create strong brand recognition. More regional departmentalization should be there, so as to create strong presen ce and market analysis at regional levels. More staff to should be hired in some departments to meet the requirements. There should be more decentralization and employees should be encouraged for the ir ideas. Compensation and benefits plans should be revised, as it can be used as a very i mportant tool to create motivation in employees. Internship Report: Warid Telecom 73

10 LEARNING AS A STUDENT INTERN IN WARID TELECOM Internship Report: Warid Telecom 74

10. LEARNING AS A STUDENT INTERN 10. 1. Duties During two months of internship, I had to work directly with eight employees. Wi th each of eight persons, I have to perform different duties. Duties with each e mployee I worked with were as follows: Mr. Haider Khan (Asst. Manager Marketing Operations) I was given duties by Haider khan to Prepare report on branding Looking after br anding at Shah Faisal Ground, Lahore for Tape Ball Tournament Mr. Zeeshan Awan (Asst. Manager Marketing Operations) Mr. Zeeshan Awan is responsible for Marketing Collaterals. Marketing Collaterals include standees, posters, flyers, tariffs, passes, log books, Usage Guidelines , branding on takeaways etc. With Mr. Zeeshan Awan, I was given duties to assist Zeeshan in whole process Taking quotations from different Vendors for collatera l production Preparing and signing CEO Notes from authorities Directing communic ations to design artworks for marketing campaigns Taking Artworks from Marketing Communications and giving it to Procurement to give orders to vendor for produc tion Directing marketing finance to issue PR to Procurement Internship Report: Warid Telecom 75

Directing Procurement issues PO to vendor for delivering Marketing collateral to warehouse Directing Warehouse to delivers collaterals to business centers /desi red location Mr. Shaham Saeed (Marketing operations Executive) Mr. Shaham is responsible for marketing event management for Warid Telecom Marke ting Department. Assisted Mr. Shaham in making arrangements and managing Marketi ng Events Press Conferences Expo Mr. Shaham was on leave from August 1st to August 20th. So I was given charge in his absence to perform his duties Mr. Hassan Jaafar (Segment Manager Masses) Mr. Hassan Jaafar is responsible for the prepaid (masses) segment. I was given d uty by him to go to all six cities on behalf of marketing operations to look aft er and execute marketing operations for ZEM Kabaddi Takkar Series and reporting to segment manager about each match. Mr. Adnan Farooqi (Asst. Manager Marketing Operations) Mr. Adnan Farooqi is responsible for New city launches. I assisted him in Prepar ing reports regarding new city launches Branding at new city launches Internship Report: Warid Telecom 76

Mr. Farrukh Ahmad (Asst. Manager Marketing Operations)

Mr. Farrukh Ahmad is responsible for BTL advertising. I assisted him in doing su rveys to check out BTL branding in Lahore and then preparing reports. Branding i ncluded Billboards Pole Signs Vertical Panels Hoardings Directional signs Bus s and Mr. Farhan Abass (Manager Marketing Operations) Mr. Farhan Abass as marketing op erations manager gave me responsibilities of ZEM Kabaddi Tournament. Survey of H afeez Centre Some documents preparation

10. 2. Accomplishments I accomplished and learned a lot in these two months of internship. The main acc omplishments were participating and taking part in organizing activities such as 2nd Warid Floodlight Tape Ball Cricket tournament 2008 Matches Abrar-ul-Ha ad for Tape Ball Tournament Lahore Gymkhana Golf League 2008-09 ZEM Kabaddi Tak kar Series b/w Pakistan and India OIC IT and Telecom Expo and Conference 2008, L CCI, Lahore SACK International Fashion Show ARY Digital Azadi Show 5 Press Confe rences: Abrar-ul-Haq signed as brand ambassador, Jawad Ahmad signed as brand amb assador, Zem Kabaddi Takkar Series featuring singers: Waris Baig, Jawad Ahmad at post match concerts, Black Berry Launch Press conference Internship Report: Warid Telecom 77

Through these activities, I came to meet artists, people from event management c ompanies, media persons, corporate clients, people from remote areas, our region al teams, business centre teams and franchise teams as well. 10. 3. New Knowledge Acquired Due to practical applications and exposure, I came to have very good understandi ng about Event Management Marketing Collaterals Market segmentation Marketing co mmunications Public Relations Media role in marketing Press Conference arrangeme nts People from different areas Problems faced while executing marketing activities 10. 4. How Experience Impacts your Career Marketing in telecom industry is best place to learn marketing basics and practi ces due to its dynamic nature. No doubt experience as an internee in marketing d epartment of multinational cellular company like Warid Telecom would serve as st ep stone to better career in marketing and media field. Experiences such as even t management assignments, process flow of marketing campaigns from scrap to a me aningful image, participating in International events would be very helpful in m y future assignments as student as well as a marketing professional. Internship Report: Warid Telecom 78

11 GLOSSARY Internship Report: Warid Telecom 79

11. GLOSSARY ATL (Above-the-line advertising) Term refers to main media expenditure, TV, prin t, radio, outdoor, cinema and its traditional accounting treatment. Now used for all traditional media expenses incurred through an agency; mainly used to creat e, maintain brand awareness/interest. BTL (Below-the-line advertising) Hoarding Expenditure on promotional activities which are used to be managed within the co mpany (now many specialized agencies take on these task); promotional activities other than above the line e.g. sales promotion, POP, direct response are exam ples of BTL. Marketing Communications Operations The formal and informal message s that sellers transmit to buyers; that can be systematic (planned) as well as t he unsystematic (unplanned) promotion by a firm of its products to its markets. Procurement Noun. Purchase, sale, acquisition Logistics Activities involved with the orderly and timely acquisition and transportation of materials required for production, and with the storage, handling and dispatch of finished goods to cu stomers. Act or process of buying or selling at a market; development of a strat egy for the sales of a certain product; promotion and selling services; distribu tion of goods Human resources Noun. Manpower, human work force, human labor; fie ld of business that deals and handles personnel matters (such as hiring, trainin g, firing, etc.) Act Noun. performance, undertaking; Marketing of operating; han dling; working, venture, Noun. Billboard (British usage); temporary tall fence m ade of boards enclosing a construction site; fence made of hurdles; temporary ba lcony made of wood that is hung from the upper walls from which missiles could b e dropped Tariff Noun. Price, rate; protective tax Flyers A mass circulation adv ertising leaflet or pamphlet dropped through the letter box or put loosely insid e magazines or newspapers. Internship Report: Warid Telecom 80

Financial Accounting Collection of basic (raw) data, as in management accounting , but treated in a prescribed and statute enforced format which emphasizes the h istoric, custodial and stewardship aspects of the business. Sales Total revenue amount collected for goods and services provided; see also gross sales, net sale s, return on sales. Sales charge same as commission Customer Service The process of meeting every customer need, before, during and after the sale; the dept. re sponsible for looking after the customer. Administration Noun. Management (of an office, project, etc.); execution of managerial duties; people in charge of dir ecting or managing, supervisors, leadership Audit An examination into the curren t business situation; it can be both internal and internal. Risk Services Provid ing services of analyzing exposure to risk and determining how to best handle su ch exposure. Quality Assurance The name given to the procedures used to ascertain that measur ement data are good enough for their intended purpose. It involves 1. Quality co ntrol: those procedures and activities utilized to verify that the quality contr ol system is operating within acceptable limits and to evaluate the quality of t he data; and 2. Quality assessment: those procedures and activities utilized to verify that the quality control system is operating within acceptable limits and to evaluate the quality of the data. Public Relations A deliberate, planned and sustained effort to establish and maintain positive understanding, good image, between a company and its publics. Such publics include customers, shareholders, employees etc. Project Management Tracking and supervision of the tasks which m ust be done in order to complete a project (especially the production of a syste m) Artwork Noun. Work intended to have artistic value Facia Noun. Sign board (of a shop); dashboard, instrument panel of a car (British) Internship Report: Warid Telecom 81

Streamer A long, narrow sign with a message in bold type hung across open area, window, or doorway. Vendor Noun. Salesman; supplier, equipment salesman (for exa mple in the field of computers, etc.); automatic machine for selling goods Loyal ty The extent to which customers repurchase a particular product or brand. Leasi ng Noun. Act of renting out property for a specified period of time; possessing or occupying under the terms of a lease. General Ledger The master file in which a record is maintained for each and every account in the organizations accountin g system. Treasury control Control of finances, dealing with money, work of a tr easurer Franchise Verb. Grant a franchise to an individual or group; grant the r ight to vote Corporate Governance 1. The control structure of a corporation. 2. The term used , following recent Government sponsored reports, to describe the policies and pr ocedures that the companys directors employ in their conduct of the companys affair s, and their relationships with shareholders to whom they are responsible as man agers of the shareholders interests in the company, and of its assets. Gross Dom estic Product (GDP) The total market value of all final goods and services produ ced in a country in a given year; equals total consumer, investment and governme nt spending, plus the value of exports minus the value of imports. Demand-Pull A pproach Developing new products on the basis of market demand rather than on tha t of company-generated ideas. Abbreviations RSM: Regional Sales Manager ZSM: Zonal Sales Manager GM: General M anager CIO: Chief Information Officer FM: Franchise Manager BCM: Business Centre Manager BEC: Board Executive Committee CEO: Chief Executive Officer Warehouse Storage for goods and services prior to customer purchase . Internship Report: Warid Telecom 82

12 REFERENCES Internship Report: Warid Telecom 83

12. MAJOR REFERENCES http://www.waridtel.com/ http://www.brandchannel.com/ http://www.pta.gov.pk http ://marketingteacher.com/index.htm http://tutor2u.net/default.asp http://www.bran dsaward.com/2008/index.html http://www.dictionary.com/ Internship Report: Warid Telecom 84

12 ANNEXURES Internship Report: Warid Telecom 85