Strategy Map For Telenor Pakistan
Strategy Map For Telenor Pakistan
Strategy Map For Telenor Pakistan
TALKSHAWK
STRATEGY MAP FOR TELENOR
Submitted by:
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Contents
Financial Perspective:..................................................................................... .............7
Asset Utilization:.........................................................................................................7
As we can see, only the market share of Telenor and warid increased in the year
2007-2008 while those of Ufone and Mobilink declined. The highest market share
growth was shown by Telenor (23.5%). This clearly shows that the long term
objective of the company is to capture the market and become the industry leader.
...................................................................................................................... .........10
Customer Perspective...............................................................................................12
Price:................................................................................................. ........................12
Quality:.......................................................................................................... ............12
Availability:................................................................................................. ...............13
Selection:.................................................................................... ..............................13
Functionality:.............................................................................................. ...............14
Relationship:............................................................................................................ ..14
Service:........................................................................................... ..........................14
Partnership:................................................................................................ ...............15
Brand:..................................................................................... ..................................15
INTERNAL PERSPECTIVE.........................................................................................17
Internal Perspective...............................................................................................18
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Operations Management Processes.......................................................................18
Supply:.......................................................................................... .........................18
Production:............................................................................................ .................18
Distribution:............................................................................. ..............................21
Other Outlets......................................................................................................23
Advertisements:.................................................................................... .................25
HUMAN CAPITAL........................................................................................................33
ORGANISATIONAL CAPITAL........................................................................................34
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1: Financial Perspective
2: Customer Perspective
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3: Internal perspective SOCIAL&
CUSTOMER MGMT INNOVATION PROCESS REGULATORY
OPERATIONS MGMT
PROCESS
Benefit Classic 2.5G GSM
PRODUCTION segmentation, network
Supply:- Two most sought after architecture Slow
:4-5 different
vendor strategy benefits, low call growth in
packages,
–Nokia and rates, low sms All radio Network telecom
more than 30
Siemens Incase rates, network is EDGE ready, sector due
value added
one vendor coverage etc hence wide band to high
services
underperforms, services can be taxes and
Averox and Innovation in offered
Planet Beyond services leads to
enhanced Media gateways Increase in
DISTRIBUTIO RISK MGMT: (MGWs) and GST.
customer base,
N: Intra-city Fiber Telenor’s
scrutinize
Innovation, competitors, Optic networks share in
Sales and advertisement WHT, 25%
innovative
service s, network Smart Radio
centres, coverage, Concept being
mobile vans, international
Flexible culture
Functional Team work in Product
simulation
specialization Innovation an
forming teams Creative workforce imperative
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FINANCIAL
PERSPECTI
VE
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Financial Perspective:
Productivity Strategy
At Telenor, the product quality and performance is achieved through a
superior network design, so in part the TalkShawk relies on same productivity
parameters as are being followed in all other product service offerings such
as Djuice and Persona. Similarly convenience in TalkShawk availability and
usage is achieved through Easy Load and distribution setup of Telenor itself.
Simplicity and Trust on TalkShawk is maintained through pricing simplicity
and transparency which is led by affordability through unlimited validity and
easy load product quality and performance through a superior network
design.
Telenor as a whole is aiming for category leadership in Pakistan. This is
evident from its pricing innovation strategy in its value based services that
leads to not only customer acquisition but retention of existing customer
base, this in turn helps to increase share holders wealth as well as the sales
vs. profit stream for Telenor. On the other hand aspiration is built into the
Talkshawk brand through focus on
• Performance,
• Expertise,
• Experience and European quality standards such as
Asset Utilization:
This is achieved through the process of Site sharing which engulfs following
aspects:
•Spectrum efficiency
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•Ensuring sufficient quality based on market dynamics (different
customer segments / demands)
Growth Strategy:
Growth strategy involves expanding the revenue opportunities as well as
enhancing customer value. The revenue opportunities are being achieved for
all the Telenor Products through:
These all in turn not only helps to sustain the value for customers but in turn
helps to increase customer usage as not only credibility is maintained but the
cash flow stream is generated through service usage that is both reliable and
innovative at competitive price in the market.
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Market share:
As we can see, only the market share of Telenor and warid increased in the
year 2007-2008 while those of Ufone and Mobilink declined. The highest
market share growth was shown by Telenor (23.5%). This clearly shows that
the long term objective of the company is to capture the market and become
the industry leader.
1
Annual report PTA
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CUSTOMER
PERSPECTI
VE
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Customer Perspective
Customer is the main stakeholder for any for-profit organization. All the
efforts are made to essentially attract, cater, care and serve the customer.
The customer perspective for Telenor is as follows:
Price:
Price is one of the prime driving factors to attract the customer towards any
product. Given the tough competition in the telecom market scenario
currently prevailing in country the companies are extensively relying on their
pricing to compete amongst the competitors.
Now shifting our focus to TalkShawk about how they have played with their
pricing strategy and pricing to gain market share and attract customers here
are the main points:
Quality:
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The general perception of TalkShawk is still better than most of its
competitors in the prepaid service when it comes to the quality. The signals
are coming in almost all of the urban areas and they are still expanding in the
northern and rural areas for better coverage and signals. They also have an
efficient customer service.
Availability:
Selection:
Talkshawk is a service that provides connection for the people who prefer the
economic benfit of the connection over the status associated with using a
connection. Their main target includes people who use Talkshawk for the
economic benefit, coverage, new and exciting packages they offer. The age
group would include students, youngsters, teenagers, people who have bot
started to earn or are in the initial stage of their carrier. This is explained in
detail in the AIOD framework.
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Functionality:
The prepaid connection has a lot of features that add to the functionality of
the connection. It makes it something more useful rather than being just a
connection that enables the consumer to call and sms. It provides internet
services, WAP Portal, MMS, GPRS and downloading services. All these
additional functionalities of the connection make the cell phone like a
handheld, which of course attracts the customers.
Relationship:
The success of a brand depends on how strong and deep relation it is able to
develop with the customers. The relationship is primarily based on two
things, the service and the partnership. TalkShawk has been active in
developing a relationship with their customers.
Service:
Service is the basic benefit they will derive from using the connection; it
includes both the customer service and the coverage and signals in the first
place. If the customers are happy and satisfied with the basic need met, they
would become loyal and a positive relation would develop. Their customer
service and increasing coverage provides evidence for their concern in giving
their customers unmatched service.
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Partnership:
This includes involving the customers in the brand through different
mediums; this could be achieved through marketing campaigns, events,
proactive feedback. What it does for the brand is that it creates a positive
image in the mind of the consumer. They select models which are popular at
that particular time so people would consider talk shawk a brand that cares
for what the people like. Apart from that the offers and deals and concerts
and events that they arrange are also evident of their consciousness towards
building a relationship with their customers.
Brand:
All efforts are done primarily to establish a brand and an image of that brand
in the mind of the consumer and the target audience specifically. TalkShawk
was amongst the pioneer brands in the telecom sector which marketed its
prepaid service so aggressively that it took the market by storm and gave
tough competition to the than market leader in prepaid service mobilink.
This was achieved through careful selection of the target audience, pricing,
mediums used for marketing, novelty in message design and the massive
launch and coverage. The brand they wanted to establish has been conveyed
to the consumer, all the features, quality and price have been well
communicated to the consumers.
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INTERNAL
PERSPECTI
VE
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Internal Perspective
Supply:
• Averox and
• Planet Beyond.
Production:
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• Apni • Dynamic • Telenor
Dharti Sim Menu Islamic
Slogan service
• d-
Contest
calendar • IR Tariff
• ASK Advisor
• Ezetop
Telenor
• Info
Messaging • Easyload
Junction
Service
• EDGE
• Missed
• Basic
• Facebook Call Alerts
Services
Mobile
• Mothers
• Bubble
• GPRS / Day
Message
WAP
• MMS
• Call Me Portal
News
Back
• Handset
• MMS
• Content Settings
Gifting & • Opera
Download • Internatio
Mini
Service nal SMS
• PicShare
• Contact • Internatio
nal MMS • SMS Email
Backup
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• Song Recipe
Dedicatio Service
n Service
• Telenor
• Sports Music Box
Portal
• Telenor
• Telenor Web Self
Cricket Service
Quiz
• Telenor
• Telenor Info
Photo Services
Express
• Telenor
• Telenor Mobile TV
Meri
• Telenor
Zubaan
My Idea
SMS
• Telenor
• Telenor
Friends
SecureAll
• Tele
• Telenor
Kissan
Auto
700
Location
• Voice Mail
• Telenor
Auto • Web 2
Advance SMS
• Telenor • 7775
Food Akhbaar
Service
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Distribution:
2. Franchise
3. Other Outlets
4. Mobile Vans
Sales and Service Centers:
These outlets not only cater in providing the Sims or connections but
also deal with addressing all the queries and providing the additional
services. For e.g. for the activation of EDGE/ GPRS on the sim, Sales and
Service centers are the right place to go to. These are responsible for all sorts
of technical and non technical queries regarding the sim or the network. The
staff at these centers is also a lot more knowledgeable than at a franchise
due to the complexity of certain inquiries. Due to this they are lesser in
number than franchises because a majority of the people are just interested
in buying the Sims and package activation. The rest, they manage
themselves or place a phone inquiry. More over these centers have to have a
huge setup of telephone lines and sufficient customer service representatives
as well. This adds to the cost. So they are mainly present in major cities.
Other Outlets
Telenor has partnered with oil marketing companies such as PSO, Caltex and
Total Parco to make Telenor prepaid products & services available at the
convenience stores located at their filling stations.
Both these type of outlets offer the following products & services:
• Scratch Cards
• Easy load
These are currently present in only major cities however like, Faisalabad,
Islamabad, Karachi, Lahore, Multan, Peshawar, Rawalpindi.
Mobile Vans :
Mobile vans have proved to be quite an effective tool not only from
distribution and sales point of view but from markeitng perspective aswell.
Even people who are brand loyal of competitors cannot ignore the presence
of the compnay, so its coming up as a good tool for promotion. Following
products and services are available in mobile vans;
• Scratch Cards
• Easy load
RISK MANAGEMENT
We all know the origin of Telenor, and undoubtedly one can say that the
company has huge financial backup. When it enters any emerging market, it
is there for the purpose of gaining market share over a long period of time,
even negating the profits. The same mindset was there when it came to
Pakistan. So by diversification of risk, we do not intend to mean
diversification of financial risk, because it has still abundant resources. But
our purpose is to look at the ways the company diversifies its marketing risk.
Innovation at Telenor:
Although innovation is viewed by many as the source of exposure to
risk, but for Telenor it is otherwise. The company has been a market leader of
innovation. It believes that the only way to capture new customers and thus a
bigger chunk of the market is to introduce the new technology in the industry
before the competitors do so. For e.g. the company has been a pioneer to
introduce a wide variety of innovative services for the Talkshawk prepaid
package. Some of the examples include Telenor mobile TV, Telenor food
recipe service and even the now so common smart share was introduced by
Telenor. Thus being the innovator, Telenor has managed to take care of the
huge financial investment that it has undergone.
Advertisements:
This is debatable, i.e. whether Telenor has achieved the objective from its
advertising campaign or not. Telenor followed the suit of Mobilink and went
for a massive advertising budget, from the word go. Overall the company is
being condemned for spending blindly and not caring for returns. When we
talk particularly about “Talkshawk” then the advertising has its pros and cons
simultaneously. The use of famous celebrities helps the company mitigate the
risk but at the same time, the execution of the campaign makes it go a bit
over the board. They want to show that they are using the slice of life frame
work; however it is hard for a common man to identify with celebrities
dancing on train and streets etc. thus the company is not doing justice to the
budget and the risk is enhanced.
Low Average Revenue Per User (ARPU) and tough competition in cellular
mobile market of Pakistan compelled all operators to expand the network
rapidly so that they can add more subscribers on their network to improve
their revenue. Currently more than 91% of the population has access to
cellular mobile service all across Pakistan though the access is more in thickly
populated localities. As seen by the figures taken from a report published by
PTA , the highest number of cell sites are added by Mobilink, followed by
Telenor. This shows that the company wants to be a leader in network
coverage.
The three packages of Telenor Talkshawk (har sec, har minute and 30
sec) all provide different international tariff rates but all being perfectly
affordable.
The core benefits offered by Telenor Talkshawk are provided in the AIOD
framework. Anyone who wants to have a new connection would want it to be
cost effective. For e.g. for low call rates it has four different packages. The
company regularly keeps on coming with adverts to promote the services.
Mostly it wants to catch up the market of youth because they comprise
majority. Moreover today’s youth is up to date and is open to change. So if
they deem the services of other providers as more cost effective, they might
switch. So basically it is difficult for companies to retain this segment.
Therefore Telenor by both its products, Talkshawk and Djuice wants to
personify youth. Obviously the nature of the product is such that it satisfies
the needs of many others as well but the primary message is that it is a
product for young people coming from the different classes of income
( middle & upper middle) but sharing a common characteristic of being fun
loving and trendy.
AIOD FRAMEWORK
Low sms 16-25 years, College and Going out Value for money,
rates university with family
Urbanite, Generally go for
students, and friends,
low price/
Lower middle
Watching Music, moderate quality,
to upper
television, movies, sports
middle. Family value,
Low call 16-25 College & Going out Value for money,
rates ( youth) university with friends,
Money savings for
students,
25-40 Music, future,
( earning Watching movies,
Work life balance,
middle class) television, sports,
Shopping Balancing
family
relations,
Career
growth,
EDGE/ 20 onwards Shopping, Media, Regard high value
GPRS/ for time , time is
Watching tv, technology,
WAP an essence,
Browse news and
High regards for
internet latest updates
communicability
Once the customers are acquired, the next important task is to retain
them. This is done by frequently upgrading the core services, as well as
providing additional services so that they do not switch. The brand switching
rate in telecom industry is substantial, because people are concerned with
the benefits of actual product and not the brand alone. Therefore all these
companies take steps to even regain their lost customers.
–Dense (small-cell) network within big cities in order to ensure coverage and
quality
–Both 900 and 1800 spectrums utilized in order to cater for capacity and
marketing campaigns
–Local traffic patterns considered while designing the core network
• All radio Network is EDGE ready, hence wide band services can be
offered
3
http://www.pta.gov.pk/annual-reports/annrep0708/ch_03.pdf
Increase in GST:
In the current budget, government has increased the rate of GST on
telecom sector significantly and analysts are of the view that it may have an
advance impact on telecom usage and resultantly, the GST collection may
drop considerably from the sector. So far, the Government revenue from
telecom sector in terms of taxes is increasing continuously since 2004-05
after the liberalization of the sector. In terms of GST sector has contributed
about Rs. 37 billion, which is 30% more than of the last year. However, the
growth of the GST collection from cellular mobile sector has declined from
50% in 2006-07 to 30% in the year 2007-08. The main reason for this decline
in GST collection growth rate could be low tariffs, closure of over 10 million
SIMs and increased rates of GST. Telenor share in total WHT was 25% who
deposited over Rs. 5.8 billion during 2007-08.
LEARNING
PERSPECTIV
E
Learning Perspective
HUMAN CAPITAL
The functional specialists in each team are responsible for the sales,
marketing and account of that particular product for example TalkShawk. The
culture at Telenor is highly team oriented and innovation oriented. The
process of decision making involves employees encouraging participation
and workable ideas. If the ideas are feasible enough to be implemented and
prove to be effective then the employees are duly rewarded for their
contributions. For example the company capitalizes on the fact that sales
personnel have a greater interaction with customers and knowledge of their
needs so they convey the information to the management who can use it to
design better consumer packages.
Cross functional teams are major form of integrating the activities of every
department and involving employees. Multitasking is also practiced so that
the when employees go on leave others compensate. Full responsibility is
given to the cross functional teams which shows decentralized approach of
the organization. Communication gap is eliminated by inter and intra net
portal system used to communicate information efficiently.
Telenor encourages use of new technology to improve service quality and
also follows proactive approach. In order to achieve innovative approach
several motivational strategies are formulated that includes bonuses, long
term incentives, career growth and advancement, promotions and training
(personal learning).
ORGANISATIONAL CAPITAL
Young employees are selected fresh people come up with new innovative
ideas resulting in following the proactive approach. Secondly the organization
also believes that young talent can be easily blended and molded according
to the culture of Telenor.
Telenor also manages diversity in its culture and does not follow any quota
system that can lead to deprived talent because of cultural differences. It
gives priority to the talent and innovative human resource ignoring the
differences in culture, religion and geographic disparity.
Telenor believes that the employees should work in teams which lead to more
people working on a particular project giving innovative and creative input for
the project. This approach also helps Telenor achieve innovation and
creativity.
The organization also emphasizes the alignment between the strategy
culture and human resource. The basic aim of the organization is to help its
customers as stated in its vision statement. For the vision to be followed it
believes in developing a culture that helps in implementing the strategies
and molding its human resource accordingly.