Wateen Final 50

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

Wateen Final 50

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Transcript of Wateen Final 50