diallog.com.pk. building a strong brand. pdf for print (eng.)

Building a Strong DIALLOG Brand

Dmitry BushikConsultant Marketing

One of the fastest growing economies in Asia

GDP growth of 8.4% for 2004/05

Foreign direct investment has increased to $1.5 billion, the highest ever in the country’s history

Privatization process in full swing (PTCL sale –largest privatization in the history of Pakistan)

USD/Rs. exchange rate stable at 59-61

Interest rates have increased substantially since last year (KIBOR rate currently over 8%)

Inflation currently at double digit levels

Pakistan Telecom Landscape OverviewMacroeconomic Outlook

Population: 154 million

Sources: EIU (Economist Intelligence Unit), Telenor reports

Pakistan Telecom Landscape OverviewRegulatory and Political Framework

Fixed-line Deregulation Policy announced in 2003

Mobile Cellular Policy implemented in 2004

Broadband Policy announced in 2004

PTCL privatization took place in June 2005

A well developed licensing framework is in place:

- 6 national cellular mobile licensees- 12 long distance international (LDI) licensees- 51 regional local loop licensees (includes WLL)

Telecom Act, 1996 laid the foundations for deregulation:

Activation tax for new cell connections reduced by 50% to Rs.500 (June 2005)

Implementation of Mobile Number Portability (MNP) expected in Q1 2006

Decreasing interconnection rates in the market

Source: Telenor Pakistan Market reports

Pakistan Telecom Landscape OverviewStrong Telecom Market Growth

16,538,227

1,034,359

1,469,927

459,792

1,074,024

2,940,309

9,559,817

Sub’s Base

6.20% TelenorGSM2005

8.80% UAE groupGSM2005

2.80% Millicom (?)TDMA1991

6.50% MillicomAMPSGSM

19912004

17.80% PTCL/Etisalat(2005)

GSM2001

57.90% OrascomGSM1994

% OwnershipTechnologyLaunch date

As of 31st Oct 2005

Pakistan Telecom Landscape OverviewCompetitive Environment: Cellular Mobiles

58%

18%

6%

3%9%6%

Mobilink

Ufone

Paktel

Instaphone

Warid

Telenor

Pakistan Telecom Landscape OverviewCompetitive Environment: Mobile Subscriber Base

As of 31st Oct 2005

100.000

45.0003.000

250.000

PTCL

GOCDMA

Worldcall

Diallog

Pakistan Telecom Landscape OverviewCompetitive Environment: WLL Subscriber Base

As of 31st Oct 2005

DIALLOG Marketing OpportunitiesMobile Operators Positioning

▲Price Leader

Product Focus▼

▲Customer Focus

Innovator▼

Low

◄Se

rvic

e de

velo

pmen

t►H

igh

Low ◄ Market stimulation► High

DIALLOG Marketing Opportunities1. Mobile Operators Positioning

Product Variety focus: Solutions Provider model

Focus onInnovations & Promotions: Aggressor

Focus on Tariffs: Price Leader model

Focus onQuality & CS: Industry Professional





DIALLOG Marketing Opportunities1.1. Mobile Operators Positioning

Actually, here is shown their brand positioning for the launch campaign. Now it looks like a change… May be reconsidered.

Simple strategy to be achieved at any cost: Race for Numbers. Obviously to be continued without retreats.

Umbrella Marketing -multiplication of subbrands - in fact limits Mobilink’smaneuvering field within the given Map of Positioning.

Completely predictable and explainable competitive behavior.

The Lowest Pricestrategy should be financed well enough. Namely finance strength - the strongest point of this given player.

Low

◄Se

rvic

e de

velo

pmen

t►H

igh

Attempt to play on all fields at once: Arms Race and Indistinct Positioning. For some reasons it’s a peculiarity of telecom dinosaurs.

▲Price Leader

Product Focus▼

▲Customer Focus

Innovator▼


▲Price Leader

Product Focus▼

▲Customer Focus

Innovator▼

Low

◄Se

rvic

e de

velo

pmen

t►H

igh







▲Price Leader

Product Focus▼

▲Customer Focus

?

Innovator▼

Low

◄Se

rvic

e de

velo

pmen

t►H

igh







DIALLOG Marketing OpportunitiesWLL Operators Positioning

▲Price Leader

Product Focus▼

▲Customer Focus

Innovator▼

Low

◄Se

rvic

e de

velo

pmen

t►H

igh






DIALLOG Marketing Opportunities1.2. WLL Operators Positioning

▲Price Leader

Product Focus▼

▲Customer Focus

?

Innovator▼

Low

◄Se

rvic

e de

velo

pmen

t►H

igh







DIALLOG Marketing Opportunities

▲Price Leader

Product Focus▼

▲Customer Focus

Innovator▼

Low

◄Se

rvic

e de

velo

pmen

t►H

igh







Building a Strong DIALLOG Brand

Stage I Monopoly

Stage I Monopoly

Stage IIPre-competition

Stage IIPre-competition

Stage III Early Competition

Stage III Early Competition

Stage IV Competitive

Stage IV Competitive

Stage V Highly-Competitive

Stage V Highly-Competitive

4 Limited network capacity

4 Limited customer base

4 High prices

4 Reactive and slow processes

4 Limited skilled resources

4 Low efficiency

4 Limited network capacity

4 Limited customer base

4 High prices

4 Reactive and slow processes

4 Limited skilled resources

4 Low efficiency

4 Expanded network capacity based on legacy or technology development

4 Customer base at capacity in some segments

4 Reactive selling

4 Focus on delivering basic services and experiments with new technologies

4 Resources beginning to develop skills

4 Low penetration rates, especially in mobile and data

4 High margins

4 Expanded network capacity based on legacy or technology development

4 Customer base at capacity in some segments

4 Reactive selling

4 Focus on delivering basic services and experiments with new technologies

4 Resources beginning to develop skills

4 Low penetration rates, especially in mobile and data

4 High margins

4 Larger network capacity

4 Customer base below capacity

4 Proactive selling

4 Focus on marketing and value added services

4 Wide use of indirect sales channels

4 Customer retention becomes important

4 High margins

4 Larger network capacity

4 Customer base below capacity

4 Proactive selling

4 Focus on marketing and value added services

4 Wide use of indirect sales channels

4 Customer retention becomes important

4 High margins

4 Innovative pricing and packaging to rebalance capacity surplus if applicable

4 Lower ARPU driving cost reduction

4 Provision of full managed solutions

4 Full utilization of indirect sales channels with stimulus

4 Customer retention essential

4 Competitor intelligence becomes important

4 Innovative pricing and packaging to rebalance capacity surplus if applicable

4 Lower ARPU driving cost reduction

4 Provision of full managed solutions

4 Full utilization of indirect sales channels with stimulus

4 Customer retention essential

4 Competitor intelligence becomes important

4 New bandwidth demanding services putting pressure on capacity again

4 Acquisition of new technologies to cope with demand

4 New revenue stream development

4 Convergence of Voice and Data technologies

4 Highly sophisticated competitive intelligence capabilities

4 High focus on win-back and customer loyalty programs

4 New bandwidth demanding services putting pressure on capacity again

4 Acquisition of new technologies to cope with demand

4 New revenue stream development

4 Convergence of Voice and Data technologies

4 Highly sophisticated competitive intelligence capabilities

4 High focus on win-back and customer loyalty programs

Development Stages of Telecommunications Markets and Services

Source: Booz Allen Hamilton Analysis

DIALLOG Marketing Opportunities: Transition to a Competitive Marketplace

+ -- +- -- -- ++ +Brand Image

+ ++ +- -- -+ ++ -Financial strength

+ +- +- +- +- -+ -International expertise

+ -+ -- -+ +- +- +Products / Services

+ +- +- -- -- -+ -Customer care

- -- -+ ++ ++ -+ +Coverage

- -- +- -- +- ++ +Network quality

Pakistan Telecom Landscape OverviewCompetitive Environment

Bulk of promising segments are largely untapped (the most significant: females)

Market dominated by low-end, low-ARPU customersRelatively large emerging middle class segment Small but profitable (high ARPU) Corporate/SME segmentPrivate postpaid small and almost non-existent

Pakistan Telecom Landscape OverviewMarket Segmentation

High Upper mid Mid Low Very low

Income classes

Shar

e of

pop

ulat

ion

INCOME DISTRIBUTION

Potential for future Penetration

Population

Subscriber growth coming from low-end, low-ARPU customersmarkets

DIALLOG Marketing Opportunities: Growth Shifts to Lower Income Segments

• Innovators• Early Adopters• Early Majority• Middle Majority• Conservative • Non-Adopters

û 2 %û 13 %û 18 %û 33 %û 18%û 16%

DIALLOG Marketing Opportunities: Market Summary

Early Adopters/Pioneers

Mass Market: Followers / Late Adopters

DIALLOG Marketing Opportunities: Market Summary Lo

w ◄

Cus

tom

er b

ase►

Hig

h

Start ◄ Product Life Cycle ► End of Life

Innovators

Conservative

Type I:Innovators

Type I:Innovators

Type II: Early Adopters

Type II: Early Adopters

Type III: Late Adopters

Type III: Late Adopters

Type IV: Conservative

Type IV: Conservative

4Technology fascination

4Motivation - Implement New Ideas

4Confidence Level High -experiment, risk

4Self taught, independent

4Latest technology, few features, performance

4Self sold, when turned on, word of mouth

4Technology fascination

4Motivation - Implement New Ideas

4Confidence Level High -experiment, risk

4Self taught, independent

4Latest technology, few features, performance

4Self sold, when turned on, word of mouth

4“The coming thing”

4Motivation - leap frog the competition, prove business

4Willing to try new things, reasonable risk

4Innovation, better way to do job, selective

4Sold on benefits, references, word of mouth

4“The coming thing”

4Motivation - leap frog the competition, prove business

4Willing to try new things, reasonable risk

4Innovation, better way to do job, selective

4Sold on benefits, references, word of mouth

4Obvious solutions to problems

4Motivation --social pressure, fear of obsolescence

4No risk, slow to change, needs references

4Seminars, proven products, hand holding

4Brand important, pay for needed features only, terms & conditions important

4Examples, address cost/technical support

4Obvious solutions to problems

4Motivation --social pressure, fear of obsolescence

4No risk, slow to change, needs references

4Seminars, proven products, hand holding

4Brand important, pay for needed features only, terms & conditions important

4Examples, address cost/technical support

4Absolute need

4Extreme competition/social pressure

4Reluctant to change

4Will send someone to a seminar, needs proof, ease of use

4Lowest cost, competitive terms, brand

4Productivity increases, fear

4Absolute need

4Extreme competition/social pressure

4Reluctant to change

4Will send someone to a seminar, needs proof, ease of use

4Lowest cost, competitive terms, brand

4Productivity increases, fear

DIALLOG Marketing Opportunities: Market Summary

DIALLOG Marketing Opportunities: Potentials

►Potential of synergy

►High telecom growth expectation

►Low market penetration

►Relatively unsophisticated and underdeveloped market

►Poor quality and scattering of existing networks

►Positive macroeconomic environment and state protection of investments

►Political stability and relative predictability

► Significant multinational experience of DIALLOG team members in efficient CDMA network enrollment, operations and marketing, reinforced with local sales and CS professionals.

+ -- +- -- -- ++ +Brand Image

+ ++ +- -- -+ ++ -Financial strength

+ +- +- +- +- -+ -International expertise

+ -+ -- -+ +- +- +Products / Services

+ +- +- -- -- -+ -Customer care

- -- -+ ++ ++ -+ +Coverage

- -- +- -- +- ++ +Network quality

Pakistan Telecom Landscape OverviewCompetitive Environment

Attractive products

& services portfolio

Attractive products

& services portfolio

Leveraging DIALLOG

team’s experiences

Leveraging DIALLOG

team’s experiences

Ensure low cost

operations

Ensure low cost

operationsHigh

quality &

efficient customer

service

High quality

& efficient

customer service

Continuous network

&coverage expansion

Continuous network

&coverage expansion

High network quality

High network quality

Support on a strong

brand

Support on a strong

brand

Efficient target

segmentation policy

Efficient target

segmentation policy

KEY SUCCESS FACTORS

KEY SUCCESS FACTORS

DIALLOG Marketing Opportunities: Success Factors

Thank You!BUT IT'S NOT THE FINAL ROUND…

diallog.com.pk. building a strong brand. pdf for print (eng.)

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