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How efficient is Heavy Advertising?
(The Telecom Industry of Pakistan)
How efficient is Heavy Advertising?
(The Telecom Industry of Pakistan)
by
Hussain Zahid
Communication Design
7th Semester
ABSTRACT
My dissertation is a research and documentation of the Telecom Industry of Pakistan.
It is mostly first hand research. In recent years the biggest accounts in the advertising
industry of Pakistan have been that of different telecom companies. Our market is
flooded with ads of telecom companies may it be any medium of communication.
Their basic aim is of course to reach the top and have the most market share.
Merely 6 to 7 years back consumers did not have much choice when it came to
wireless telecommunication in Pakistan. There were just two companies, Paktel and
Mobilink that offered cellular services. Mobilink-Jazz had almost become a generic
term for cellular services in Pakistan. But now when a customer goes into the market,
he is bombarded with the variety of brands to chose from and not just choosing
between the basic companies but also the different packages that they offer. brands.
We see their ads on TV, listen to them on radio and see them in print all over the
country. Their jingles and tag lines have been drilled in to our heads, our roads have
a shadow cast on them from the great number of billboards and our news papers are
dominated by their press ads. Each brand has their way of communicating and getting
close to public and making them buy their prouct and services. It almost seems as a
cat fight.
It is also interesting that with so much competition that already exist in the market;
more brands emerge and dive into this pool. At all times new strategies, new ideas,
new concepts are being formed. The previous thoughts are being adapted and
conceived in different ways in order to tackle the competition and win over more and
more customers.
Being, probably the most heavily advertised industry in Pakistan, keeping the various
factors in mind; I believe the telecom industry is the best way to learn about the
Pakistani market, our people and our advertising.
AIM
Advertising is not just about the product and selling it in an innovative way, to
understand the product to understand the market and the competition that exists in the
market is also very important.
TABLE OF CONTENTS
•
History of the telecom industry of Pakistan
•
Research methodology
•
Introduction and details of the telecom brands of Pakistan
12 - 26
•
The Competition
27 - 31
•
Questionnaire
32 - 39
•
Conclusion
40 - 41
7 - 10
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
(Introduction)
History of the telecom industry of Pakistan
1876 - Alexander Graham Bell invented the telephone. Elisha Grey was the first
person to file a patent application. Over the next 11 years, 600 patent suits were
filed in Bell’s favor. However the idea of such a device was inconceivable in those
times. Bell and his financial backer, Gardiner G. Hubbard, offered Bell’s brand new
patent to the Telegraph Company - the ancestor of Western Union. The President
of the Telegraph Company, Chauncey M. DePew, appointed a committee to
investigate the offer. The committee report quoted;
“The Telephone purports to transmit the speaking voice over telegraph wires. We
found that the voice is very weak and indistinct, and grows even weaker when long
wires are used between the transmitter and receiver. Technically, we do not see that
this device will be ever capable of sending recognizable speech over a distance of
several miles.
“Messer Hubbard and Bell want to install one of their “telephone devices” in
every city. The idea is idiotic on the face of it. Furthermore, why would any person
want to use this ungainly and impractical device when he can send a messenger to
the telegraph office and have a clear written message sent to any large city in the
United States?
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
“The electricians of our company have developed all the significant improvements
in the telegraph art to date, and we see no reason why a group of outsiders, with
extravagant and impractical ideas, should be entertained, when they have not
the slightest idea of the true problems involved. Mr. G.G. Hubbard’s fanciful
predictions, while they sound rosy, are based on wild-eyed imagination and lack of
understanding of the technical and economic facts of the situation, and a posture of
ignoring the obvious limitations of his device, which is hardly more than a toy.
Alexander Graham Bell’s invention has taken routes that were perhaps even
beyond his imagination, but the journey has been a long one.
Pakistan inherited the British post, Telegraph and Telephone departments in 1947
with the number of landlines standing at 7000. For about the next 30 years, this
analog communication lingered along. In 1962, the PTT (Post, Telegraph, and
Telephone) Department was split in to three different departments. In 1991, further
reorganization led to the PTC act which allowed the private sector to join in.
In 1995, the Internet exploded into the global telecom scenario and Pakistan
Telecom could not cope with such advancements. The Pakistan Telecommunication
Ordinance 1994 provides a legal framework for active participation of the private
sector in the development of telecommunication services. It was then where the
journey began. Now with the inclusion of the private sector, the telecom industry of
Pakistan started to take a new shape and head forward.
From the year 1994 to 2003, various private cellular organizations broke into
the telecom scene in Pakistan. These companies were Pak Tel, Instaphone and
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
Mobilink. These organizations raced ahead with there wireless form of voice
networks. Pakistan at that point was going under a major change regarding the
telecom network of the country. AMPS and GSM were the new terms that were
flourishing in the country and both forms of network doing considerably good.
Looking at this, the PTCL (Pakistan Tele Communication Limited) launched their
private mobile network we know as Ufone.
1999 was the year when Pakistan’s telecom sector saw a major increase. From 2.1
phones per 100 Pakistanis, the number of fixed lines crept up to 2.9 per 100 people.
Even though the cellular services were more dynamic and offered various deals and
packages, only about 5 percent of Pakistanis had cell phones in 2004. The Pakistani
government had by now started taking the industry seriously and had deregulated
the sector. As a result, the private sector organization geared up to provide the
services. In June of 2004, cellular subscription shot up by 56 percent (7 million
people), which made Pakistan one of the fastest growing cellular markets. Within
the next 18 months, it is recorded that both fixed and mobile lines doubled. An
article in Business Week dated 31st January 2005 by Naveen A.Mangiin says that
the telecommunications minister at that point Awais Ahmed Khan Leghari said,”
It’s an absolute revolution”.
In the year 2004, the number of mobile users beat the number of fixed line
subscriptions for the very first time. Cellular services were to gain up even more
as two more companies joined the existing four. Norway’s Telenor and Al-Warid
Group of the United Arab Emirates were the new fishes in the pond.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
Today the biggest account in terms of advertising in Pakistan is of Mobilink which
is one of the pioneers in wireless communication in Pakistan. With such a heavily
advertised and congested market, where consumers have the benefit of choosing
from not only different companies but also different packages that they offer,
last year we saw another huge name, Paktel-The China Mobile Company launch
another operator Zong.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
RESEARCH METHODOLOGY
My research is primarily first hand where I have gathered information on the PTA
(Pakistan Telecommunication Authority) and these brands though their websites and
articles that have been published in various news papers and magazines.
In the first chapter where there is detailed information and facts about the companies,
have been verified through their official websites for e.g. when did the company start,
the mother company behind these brands, their origins etc.
In the second chapter it is discussed that how these companies are going about
their marketing strategies in order to gain maximum market share and be on the top.
These analysis have been based various marketing techniques and tools. To gain
information on these tools, I have referred to different books on business management
and websites that provide such information.
The third chapter is based on a questionnaire (qualitative research), where the research
sample indicates the success of each brand, which brand is doing well in terms of their
marketing and promotional activities.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
(Chapter One)
Introduction and details of the telecom brands
of Pakistan
Telecom industry is growing in Pakistan, with new companies getting license the
competition is tough as a result the consumer is getting benefit and enjoying cheap
call rates. With a population of 15 million people, telecom is one of the best revenue
generated industry. As voice over IP, web conferencing and online video sessions are
becoming popular these companies have bright future ahead.
Mobilink:
Mobilink GSM (PMCL), a subsidiary of Orascom Telecom, started its operations in
1994, and has become the market leader both in terms of growth as well as having the
largest customer subscriber base in Pakistan - a base of over 28 million and growing,
Mobilink pride themselves on being the first cellular service provider to operate
on a 100% digital GSM technology in Pakistan that also provides state-of-the-art
communication solutions to its customers.
Mobilink offers exclusively designed tariff plans that cater to the communication
needs of a diverse group of people, from individuals to businessmen to corporate
and multinationals. To achieve this objective, they offer both postpaid (Indigo) and
prepaid (JAZZ) to the people of Pakistan.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
In addition to providing advanced voice communication services that makes the lives
of millions that much easy, Mobilink also offers a host of value-added-services to
their customers. At the same time, Mobilink perhaps has the largest coverage network
which is spread over in 10,000+ cities and towns nationwide as well as over 130
countries on international roaming service.
*Mobilink’s Values
• Total Customer Satisfaction
Customers are at the heart of our success. They have placed their trust and confidence
in us. In return, we strive to anticipate their needs and deliver service, quality and
value beyond their expectations.
• Business Excellence
we strive for excellence in all that we do. We aspire to the highest standards and raise
the bar for ourselves everyday. This commitment to delivering world-class quality
translates into unmatched service and value for our customers and all stakeholders.
• Trust & Integrity
At Mobilink, we take pride in practicing the highest ethical standards in an open
and honest environment, and by honoring our commitments. We take personal
responsibility for our actions, and treat everyone fairly, and with trust and respect.
• Respect for People
Our relationships drive our business. We respect and esteem our employees and all
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stakeholders. We believe in teamwork, empowerment and honor.
• Corporate Social Responsibility
As the market leader, we recognize and fulfill our responsibility towards our country
and the environment we operate in. We contribute to worthy causes and are
dedicated to the development and progress of the society.
Compared to their competitors, both the postpaid (Indigo) and prepaid (JAZZ) brands
are the largest brands of their kind in the Pakistan cellular industry.
*Achievements
• ISO 9002 Quality Management System Certification for Billing, Engineering
Departments and CS Contact Center
• Implementation of a full Intelligent Network (IN) platform from Siemens for the
Prepaid platform
• Largest Call Center in Pakistan, which is there to assist the customers 24 hours
• Only cellular service in Pakistan to provide coverage on the M2 motorway
• Bilateral roaming in over 130 countries around the world with true international
roaming with over 300 operators across the globe
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
• First mobile operator in Pakistan to offer extensive GPRS Roaming and Blackberry
Roaming services
• MOBILINK GSM’s Short Message Service Center allows Vehicle Tracking and
Fleet Management services that are being provided by Trakker (Pvt.) Ltd., under the
brand name of C-Track, a company licensed by Pakistan Telecom Authority (PTA).
Trakker currently operates from Karachi but can provide these facilities at all those
locations where GSM coverage is available
Call them pioneers, giants whatever but the fact is that Mobilink is the largest Cellular
Company in Pakistan.
Mobilink being the pioneers of introducing cellular networks in Pakistan established
themselves as the major cellular company of Pakistan. Though the rates at Mobilink
are still expensive as compare to other companies like Ufone and Warid Tel, but there
data base is so old that a lot of their customers cannot afford to change their cellular
services. Mobilink recently started GPRS services with RS. 500/month and offer
unlimited usage. This was a treat for GRPS users those who want to take their office
with them.
Mobilink has one of the best infrastructures and network is established. Mobilink is
major cellular company and will stand in first place many years to come. The only
problem I see with Mobilink is the call rates which in my point of view are some what
high. As the competition is growing the rates will have to be cut down to attract more
subscribers.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
*Today Mobilink – a company at the forefront of technology stands tall with the
world’s strongest brands. Pakistan’s favorite cellular service is the first ever cellular
network to have been awarded with the ‘ SuperBrands’ accolade. Reliability,
innovation, growth and performance above and beyond others are what set us apart.
We thank all our family members for making Mobilink indigo and Mobilink Jazz
achieve the super brand status.
*Quoted from the official website.
Ufone:
PTML is a wholly owned subsidiary of PTCL established to operate cellular
telephony. The company commenced its operations, under the brand name of Ufone,
from Islamabad on January 29, 2001.
During that year, as a consequence of PTCL’s privatization, 26% of its shares were
acquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL,
the management of Ufone had also been handed over to Etisalat. During the year
July 2005 to June 2006, Ufone started reaching new heights as the company further
expanded its coverage and added new cities and highways under its umbrella. Ufone
has network coverage in more than 5442 locations and across all major highways of
the country, which not even Mobilink has.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
Ufone has also successfully completed the network expansion of Phase IV in existing
as well as in new cities and towns which amounted to more than US Dollar 170
million. As a result the asset base of the Company has increased from Rs 20 billion to
Rs 27 billion.
Ufone has adopted the policy of simplified tariffs with no hidden charges, which
resulted in positive impacts on the usage trends of subscribers as well as total
subscriber base, which has increased from 2,579,000 people in June 2005 to
7,487,000 people in June 2006. Ufone currently caters for International Roaming
to more than 230 live operators in more than 130 countries and has also introduced
International roaming facility for Prepaid subscribers in Saudi Arabia, United
Kingdom, United Arab Emirates, Singapore, Portugal, Thailand, Cyprus, Bangladesh,
Uzbekistan, Tunisia, Sri Lanka, Belgium and Kuwait with very low rates, featuring no
security deposit and activation charges. GPRS Roaming facility is available with more
than 115 Live Operators across 85 countries.
Ufone’s operational performance has been very encouraging. Despite the stiff
competition in Pakistan telecom market which has led to reduction of prices to bare
minimum level for almost every company, due to its smart policies and exercising
strict control over expenses Ufone has managed to improve its revenue and after-tax
profit by 87% and 54% respectively, as compared to last year.
The company has also been awarded a new License for providing cellular services in
Azad Jammu & Kashmir and Northern Areas.
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*At Ufone, it’s always about you in order to evolve with our customers and to keep
pace with your needs, we rejuvenated and revamped our image by changing our visual
identity. At Ufone we understand the value of words and the need to communicate
effectively and efficiently at all levels of society, which is why our primary focus is on
U, our valued customers bring strength to our company.
With a fresher look than is accepted and appreciated across the board by people of all
ages, we aim to connect with you and provide you state of the art services. No matter
who you are, where you are, what you want to say, how you want to say it or how you
feel, you are our focus. Because at Ufone, it’s all about U!
Ufone is currently providing quality services across Pakistan. Their calling rates were
recently lowered and Ufone now over all the other networks has the cheapest pre-paid
rates that are available in the market. Ufone with the backend support of PTCL has
always provided quality services to its subscribers.
Internet Bill payment is the special feature offered by Ufone for the first time in
Pakistan. Web2SMS chat, Mobile banking, Pay via SMS; are some of the best features
offered by Ufone.
Ufone claims to have 3 million subscribers and still growing. Ufone is one of the best
cellular companies in Pakistan with reliable network and coverage to over 100 key
cities and prominent highways.
*Quoted from the official website.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
Telenor:
**Telenor ASA is an international provider of high quality telecommunications, data
and media communication services. It ranks as world’s 7th largest mobile operator
with a total of 153 million subscribers in its mobile operations. Telenor Pakistan is
100% owned by Telenor ASA and adds on to its operations in Asia together with
Thailand, Malaysia and Bangladesh.
Telenor Pakistan is completely owned by Telenor ASA. Telenor Pakistan launched its
operations in March 2005 as the single largest direct European investment in Pakistan,
setting precedence for further foreign investments in the telecom sector. The company
has covered several milestones over the past few years and has grown in a number of
directions. Telenor has grown to become a leading telecom operator in the country. In
fiscal year 2006, Telenor achieved nearly 200% growth in their subscriber base – the
highest in the industry by a wide margin.
Out of all the companies that are present in the current market, the fastest growing
mobile network has been Telenor, with coverage reaching deep into many of the
remotest areas of Pakistan.
Telenor are keeping ahead by investing heavily in infrastructure expansion. With US
Dollar 1 billion already invested, they have extended agreements with their vendors
for network expansion and services until 2009. The agreements, with a potential to
result in US Dollar 750 million worth of orders from Telenor Pakistan, are some of
the biggest of their kind in the industry.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
Telenor is spread across Pakistan, creating 2,500 direct and 25,000-plus indirect
employment opportunities. They have a network of 23 company-owned sales and
service centers, more than 200 franchisees and some 100,000 retail outlets.
*The Brand
At the heart of our new brand is a new logo. It’s a symbol of balance, movement and
change. It represents our philosophy of innovation and democratic process and takes
its inspiration from Scandinavia’s long history of design inspired by nature.
Of course a brand is much more than just a logo – it’s a set of ideas, a way of doing
things and measure of behavior.
In many ways, Telenor already stands out. We have shown impressive growth and an
increasingly international focus, particularly in new growing markets but we can go –
and need to go – much, much further.
“Our aim is to be the trusted mobile service provider for the Pakistani customer”
Telenor Pakistan today is the fastest growing network in the country with a rich
portfolio of products and services. We have edge of introducing products which are
industry first and provided consumers with more and more convenient options of
communication.
Our brand is truly customer centric. We believe in understanding our customer’s
needs which have changed and are changing constantly therefore continuously driving
us to innovate in terms of our products and services.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
*Awards
• Telenor Pakistan has won the awards for “Most Innovative Mobile Operator.
• The 2008 Telenor Brand Award was given to Telenor Pakistan for the second year
in a row.
• Telenor Pakistan received an award at the 5th Annual Environment Excellence
Awards (AEEA) distribution.
• Telenor Pakistan has won the PSHRM Preferred Graduate Employer Award
Telenor can be called a little brother of Ufone. Their sound clarity is really excellent.
Their GPRS is a fast connecting one than Ufone as its EGPRS (Enhanced). The easy
load facility is the single most excellent idea that Telenor came up with first of recharging account from Rs 10 to Rs 1000 with unlimited validity.
Telenor is perhaps Mobilink greatest rivals. The company is eager to become the
biggest in Pakistan.
**Quoted from the official international website.
*Quoted from the official local website.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
Warid:
Warid Telecom International is an Abu Dhabi based mobile telecommunication firm
providing telephony services in Bangladesh, Congo, Pakistan and Uganda.Warid
is operated by the Abu Dhabi Group led by Sheikh Nahayan Mabarak Al Nahayan.
Warid started it services in Pakistan May 2005. Since then Warid Telecom has
successfully launched their services covering 28 cities with a total population of
around 32 million people.
When launched, Warid didn’t get the attention of the subscribers. One to two months
after the launch of Warid Telecom people started purchasing the connection, mostly
because of their main feature Friends and Family with rates of 1.90/mins. Their rates
are amongst the cheapest in the market and with 30 sec billing feature makes it worth
while to try once.
Warid Telecom joined hands with SingTel Group. Abu Dhabi Group entered into a
strategic alliance with Singapore Telecom. After this transaction in July 2007, telecom
giant SingTel acquired 30% percent equity stake in Warid Telecom, Pakistan, for
US$758 million. This partnership is part of a strategy to support Warid Telecom’s
continued growth and to enhance its market position.
*The Warid Look
• An evolution that strengthens the Warid identity while keeping the customers in
focus
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
• Use of a more contemporary font & style to give a more approachable image
• 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
create their own life style networks.
Warid Pakistan provides both post-paid and pre-paid connection plans. The postpaid plan is branded and marketed across the country under the name Zahi Post-paid,
which means leader or royalty. The pre-paid segment is branded and marketed as Zem
Pre-Paid.
Currently Warid Telecom has 16.65 million subscribers as of December 2008. It is
ranked as the fourth largest operator in Pakistan. Warid Pakistan claims it has the
largest “post-paid” subscriber base in Pakistan.
*Awards
Lahore, December 11, 2008: Warid Telecom Limited has won ‘Brand of the Year
Award’ again in 2008, in the category of ‘The Best Cellular Company in Pakistan’.
Prime Minister - Yousuf Raza Gilani presented the award to Faisal Ejaz Khan –
Acting Chief Executive Officer, Warid.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
This is the second time in Warid’s three and half years of successful operations in
Pakistan that Brand of the Year Award has been granted to the company. In 2007
Warid was the winner of ‘Brand of the Year Award’ in the category of GSM operators
and service providers.
*Quoted from the official local website.
Paktel:
Paktel Limited commenced operations in 1990 as one of two wireless telephony
providers. The other company was Instaphone. It was the first ever company that was
granted license to carry out cellular phone services in Pakistan, set up by Cable &
Wireless. It carried out AMPS services until 2004, when the company launched GSM
services as well.
However after the launch and rapid success of Mobilink in 1998, both services lost
market share. In 2003, Millicom Corporation, who at that time was majority owners
of Instaphone, bought Paktel from Cable & Wireless. Millicom installed a new
management team headed by John Tumelty, former CEO of Instaphone, and Chief
Financial Officer David Ordman. In January 2007 Millicom sold Paktel for $284
million to China Mobile.
China Mobile is the world’s largest telecom operator. Having a customer base of over
300 million customers, its network routes 700 million text messages every day and
handles 250 million calls every hour.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
China Mobile Pakistan has the license to offer and operate voice, data and all value
added services in the entire country. One of the fastest growing cellular markets in the
world, Pakistan is a key region that is likely to offer expansion opportunities.
So far CMPak has invested more than US$ 700 million in the telecom sector in
Pakistan.
Zong is the first International brand of China Mobile.
*The core essence of Zong is to allow people to communicate at will. Zong is
supported by ground breaking communications, trend setting customer service and
an unmatched product offering which will redefine rules of the game and establish
Zong as a serious contender for the number one spot. Zong offers its customers with
entertaining & innovative value added services and empowers them by giving a wide
variety of products, services & content to choose from.
*Quoted from the official local website.
Instaphone:
Instaphone introduced Pakistan to mobile telephony in 1991. Instaphone holds honor
of pioneering coverage to an ever expanding network of 185 Cities. It is a small
cellular company in Pakistan The cellular company runs AMS network which is the
major reason of small number of subscriber’s nation wide.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
Instaphone has a strong infrastructure. From time to time Instaphone announces
packages that are cheap. They have a lot of packages available from which you can
choose the one that suit your needs. With good network coverage and cheap call rates
make it a choice for moderate user. The only drawback is that it’s an AMS network.
*Achievements
With popular products; Instaphone’s prepaid brands Insta One and Insta Xcite
and Postpaid brand Contract, Instaphone have secured a place among the masses.
Instaphone’s latest endeavor has been the introduction of 12 months Free Incoming on
Insta One prepaid. Insta One has now become the most affordable contactable prepaid
connection. As all Insta One customers can now stay contactable for as low as Rs. 54
per month as well as enjoy free incoming services throughout the year.
*Value Commitment
• Expanding to new cities and providing excellent cellular service to new areas
• Providing the best signals within each city
• Best call connectivity and voice clarity
*Quoted from the official local website.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
(Chapter 2)
The Competition
There is no such thing as a lot of advertising. That seems to be the motto of the Pakistani
Telecom industry. Pakistan’s telecom industry has flourished immensely in the last few
years. From 1994 where it was just Mobilink, the industry has seen great competition.
At present, the industry is run by five major brands that have been doing their best to
get to the top. What makes this scenario so interesting is that all these brands are the
biggest accounts in term of advertising in the nation and the people are showered with
heavy marketing and promotional activities. Unlike other countries, cellular companies
in Pakistan hold a vital share in advertising spending; both in print and electronic media.
High paying and long running advertising campaigns contributed a lot in advertising
industry.
One cannot see Pakistani television for ten minutes and not come across at least two
tvcs’ (television commercial) by one of the five brands. These brands are of course
Mobilink, Ufone, Telenor, Warid and the newest member Zong. Their billboards are
what Pakistan’s main cities are decorated with. Pole signs, pedestrian bridges, radio
spots, mobile advertising: name it and it is being done.
Pakistan is a highly competitive market because consumers are not bound by long-term
contracts to cellular service companies. The consumer has the option of a post-paid
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
monthly billing connection, which is preferred in the professional segment, or the option
which is more popular amongst the masses, pre-paid connection, through which the
consumer can recharge the connection whenever and by any amount.
The percentage of loyalty to a brand is very low and these companies have no other
option but to communicate as much and in as many ways as possible to stay in the
eyes and minds of the people. These companies are as big as they come, with almost
unlimited resources when it comes to R&D (research and development) and are most
certainly not shy to spend money when is comes to advertising themselves.
Anticipating competitors’ actions and reactions to your moves may be the key
determinant of success for any marketing strategy. One competitor cuts prices,
undermining your pricing strategy. Another may decide to offer new products and
services. One just doesn’t have to work on countering these different marketing
strategies but also has to make sure that their image is constant and at no cost should it
lose its visibility.
Slogans
Slogans and tag lines are perhaps the one thing that these companies have maintained
for the longest period of time. Their main identity is never compromised, with each
new campaign; they try to embed these slogans in the minds of the people. These
slogans are perhaps what differentiates them in there approach towards their audience
and helps them maintain a separate identity and not get mixed or lost in this massive
structure.
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Aur Sunao! is Mobilink’s slogan. With every new campaign, they have used it
in different tones yet have kept a sense of friendship with the Pakistani audience.
Mobilink is the oldest and the pioneers of GSM technology in Pakistan. Aur sunao is a
gesture of an old friend that has been there forever. Not only does is only re-insure the
relationship between their subscribers and the company but to the people who do not
used Mobilink’s services, it is perhaps there old friend that they might have forgotten
but Mobilink still remembers them and says Aur Sunao!
Tum He Tu Ho! is the slogan for Ufone. It has been the same ever since Ufone
started in 2001. Tum he tu ho! in English translates into ‘you are the one’. Not only
does it make the subscriber feel special about using Ufone’s services but it also on
some level suggest that it is the one brand that is a subsidiary of the government. Its
makes the company and the user stand out of the crowd.
Telenor is perhaps the only brand with multiple slogans. With there different packages
they target different segments of the market and approach each package differently.
The Smart Call! This is the slogan which comes with their formal logo of the
propeller. The logo itself is a sign of moving forward. The slogan makes a person feel
intelligent for using their services.
Yehi Hai Dhun Sab Ki! Is the slogan for their talkshawk packages. The entire
package is based on low call rates, with special offers like friends and family
numbers. It is about making people talk to each other as conveniently as possible.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
One Place Its Fun To Be Young! Goes with djuice. Djuice is for youngsters, who are
more likely to sms then call. Their campaign makes sure they have that fun element
and make the user feel young when they use the package.
Life Ka Network! Warid uses this slogan to attract its subscribers. It has to do with
the name of their packages which are Warid Zem and Warid Zahi, which mean life
itself. One can imagine the kind of ideology behind the slogan. It becomes a part of
ones life. They aren’t just trying to increase there subscriber base but be a part of the
lives of their customers.
Sab Keh Doh! Is what Zong works with. Zong’s main criteria has been to come up
with the lowest call rates possible and trying to get the people to say everything on
there mind. It is an inviting slogan, which also works in their favor as they are the
newest big fish in the industry.
These slogans are the one true identity that makes these brands stand out and have
their own personality. It tells us about the approach that the company is taking
towards its customers. But are they really that different from each other? There are
a certain things that are common in at least one of their campaign. All these brands
try to hit on the emotional side of things. Mobilink, Telenor and Zong all have
music videos running day in and day out trying to re-enforce their ideologies in the
conscious and subconscious mind of people.
Ufone has recently adapted a slapstick appraoch, where they indirectly try to demean
their competitors. Their campaign could be called witty but in simple terms all they
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
are doing is picking on the rest of the companies. Zing has kind of joined them but
they do it in a more subtle fashion.
Each company has a variety of packages. There are so many that is actually difficult
to understand how one is different from the other and the process doesn’t stop.
They keep on bringing up new deals. No company is resting. The fact that all these
companies have a strong financial backing, it is almost impossible to push one of
them out. The ones that could have pushed out have long gone.
There is no rest in such a market. If the jingles and the packages aren’t enough, their
tvcs’ occupy every slot available. Almost every third ad on Pakistani television is of
one these brands and it is so throughout the year. There is no road in Pakistan where
there isn’t a billboard of a telecom company. The entire stretch of Shari-e-Faisal
(Karachi), from Regent Plaza till the very end of dig road has billboards of Mobilink
and pole signs of Warid. The people of Pakistan are literally bombarded by their ads
in all forms of communication.
The Pakistani population has not witness advertising on such a big scale. The question
to be raised here is that does it work? So many ads, so many billboards, so many
radio spots, so many packages; are the people even looking at them? Does someone
even conceder an ad or a billboard that they have seen before they go and buy a
connection? Does it all come down to who offers the best rates?
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
(Chapter Three)
Questionnaire
In order to understand the consumer behavior, and how do people react to such
heavy advertising, I have a sample of 50 people who have filled in the following
questionnaire. The aim of this was to get a first hand look to what do the people think.
Not think just in terms of which ads they like the most, but also of what influences
them and what doesn’t. The questionnaire was a way to not only find out what brand
is the most popular but also to find out the reasons.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
The information gathered from the questionnaire has been compiled, checked and
re-checked to illuminate any errors. Again this sample is of a total of 50 people, male
and female, age ranging from 20 – 40.
What Connection do you use?
Mobilink
Ufone
Telenor
Warid
Zong
Mobilink is the company with the biggest market share, but quite clearly, that market
is not amongst the youth. Out of the 50 people, only 10 use the services of Mobilink.
Ufone seems to be the most popular choice. Although, may it be any subscriber, their
reason of using any service was whoever was offering the best deal at the time. And if
not that, whatever their fathers got them.
If you buy a new connection, which would it be?
Mobilink
Ufone
Telenor
Warid
Zong
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
This is where the real game begins. Get new subscribers, sell more and more
connections. That is the soul aim of all of these companies. The questionnaire offered
four reasons as well, as to why would you want to buy this connection specifically.
The four reasons where: Cheap Rates, Most Popular amongst your peers, Good and
reliable service, Good Advertising.
Apparently no one out of the 50 people wanted to buy a Mobilink connection. The
race was major between Ufone and Zong. Warid and Telenor got a few votes as well.
Out of the four reasons, cheap rates was marked by 44 people of out of the 50. 4 and
2 people marked good advertising and reliable service respectively. This goes to show
you the mind set of the prospect subscriber. All they care about is who is offering
the best rates. And to be honest that is only what is being told to them. All our ads
are basically a display of the tariff. They show no other attachment of the company
and the subscriber other than offering low cheap rates. It is just the money game, and
right now Zong seems to be leading the pack. Zong is the number one choice when it
comes to buying a new connection.
Which brands advertising do you like the most?
Mobilink
Ufone
Telenor
Warid
Zong
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
This particular part of the questionnaire was not a surprise. Everyone would agree
to the results found. It was only Ufone and Telenor who were amongst the popular
choice of brand in terms of advertising. Warid did not get any votes at all. Ufone
ultimately leading the pack. Upon asking the reasons as to why do you like the
advertising of this company, the most common answer was because it is FUNNY. For
Telenor, people said that it is spontaneous and directed towards the youth. They are
the only two brands who might be showing a little more in their ads than just offering
better talk time.
Perhaps the other brands should learn from this. Show something more than just how
low your call rates our. The viewer should look at an ad and feel proud and good
about being a part of that company. I believe that is the purpose of advertising.
Does any Advertising influence you?
Yes
No
Slice 3
Slice 4
According to the poles, 37 people out of the 50 said that advertising of the telecom
sector does not make them change there connections or buy new ones either. It is all
just need to be basis. If someone needs a new line, they check who is giving the best
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
rates, doesn’t care about the service, or what brand it is or anything, just get whatever
is the cheapest. In such a market brand loyalty merely exists. The only brand loyalty
that is there is perhaps with Mobilink users.
Ads are suppose to create the need, if nothing at least influence the people to use their
services, but nothing of that sort seems to happen in this market.
In foreign brands, Vodafone, Airtel and Hutch were given the most votes respectively.
Their ad campaigns are even in the minds of Pakistani crowd. Why would this be? In
a place where nobody cares about brands why would any one even remember an ad of
a brand that is no even in Pakistan? The answer to that is their advertising. Vodafone
with their “Dog Campaign” where they are winning the hearts of the viewers. Not
telling the subscriber about the new package but making a connection through
emotions and value. Making people buy their connections not selling it to them.
Airtel, has created an identity for it self through that music, which has become so
prominent in our minds. People even use it as ring tones here. In these ads, there is
no talk about money, about talk time, about free sms; it is pure advertising, to make
people buy their product.
Unfortunately, the advertising industry in Pakistan has lost that charm. Ufone
and Telenor are perhaps better than the rest but they too fall into the trap of the
economical and business side of things. At the end of the day it all becomes business
and market strategy. No concept, no creativity.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
Do these Ads annoy you?
No
Yes
Slice 3
Slice 4
38 people out of the 50 said that these telecom ads annoy them. They do nothing but
make them change channels. A few reasons were “they are all the same, they just
show number, and it’s just too much to take”. If advertising starts to annoy the people,
shouldn’t it be cut down or changed.
Change
Less Ads
Intellegent
Ads
No Ads
Slice 4
People want to see better ads. 40 people said that they want to see intelligent ads, and
if not that at least less ads. In Pakistan its just one industry that is heavily marketing
itself. In bigger nations which are the center of the business world, like the U.S or
England, even India for that matter, advertising as a whole is a part of society. It is
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
done on such huge levels that their consumers don’t even know when they have been
hit with a thought. The reason they are so successful is because, there, advertisers are
targeting senses. They go for the heart or the mind, not the pocket.
Such a change is perhaps needed in Pakistan.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
Conclusion
‘Advertising is a form of communication that typically attempts to persuade potential
customers to purchase or to consume more of a particular brand of product or service. This is the definition of advertising on Wikipedia. According to this, any kind of
advertising is proper. The basic aim has been clearly defined. But what happens if that
aim is not reached? Where the product is at a stand still. Shouldn’t then advertising
take different routes, get more creative and innovative to get to the minds and hearts
of the consumer.
It is that time for the Pakistan telecom industry. It is that time for their advertising to
get smart and beyond economics. These companies have to realize that the money
game is no longer working, because all the fishes in the pond are big, very big. Everyone can afford to lower their call rates and come out with new packages and advertise
them to the extreme in order to fight for supremacy.
Perhaps now to come to the top, these brands have to create an environment around
them that captivates the audience. Not sell entirely on the basis of money, but put
value to their words. They need to look at brands that have now become symbolic.
Brands like Nike, Coca-Cola etc. these brands are no longer selling products, these
brands are selling a way of life.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
In a market which is as crowded as the Pakistan telecom industry, where companies
are just after profit maximization, it is a safe option to be defensive in advertising.
Show the basics, talk just about the financial and economic benefits of the service.
But to become the biggest, some risks have to be taken. It has to start somewhere, and
advertising is the one tool that is in direct connection to the consumers.
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
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How efficient is Heavy Advertising? - The Telecom Industry of Pakistan
Bibliography
Official websites of the following companies:
•
Mobilink
•
Ufone
•
Telenor
•
Warid
•
Paktel (Zong)
•
Instaphone
http://telecompk.net/
http://www.businessweek.com/magazine/content/05_05/b3918096.htm
http://www.scribd.com/doc/4782381/GSM-History-and-Operators-in-Pakistan
http://www.callpakistandirect.com/CallPakistan/pakistan_telecom.html
http://www.propakistani.com/2008/11/11/advertising-industry-bearing-telecom-brunt/
http://pakistaniat.com/2006/11/28/pakistan-telecommunication-mobile-industry/
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