PROJECT #1

MARKETING MANAGEMENT
SUBMITTED BY:
ASIM SHAFI
HAMMAD ATA TUNG
HAN ARIF ANSARI
MUHAMMAD RIZWAN ZAFAR
MUHAMMAD SAAD. J. GHORI
SHAREEM JAVED
SOHAIL RAZA
WAQAS JAVED KHAN
a. INTRODUCTION: -
This project demands our group to apply the marketing management concepts on some
institution, which exists in the real market. The institution in this case is “WARID
TELECOM (PAKISTAN)”. Keeping in view the task at our hands we would first like to
give a brief introduction and the history of Warid.

b. Introduction and history of Warid: -

The Abu Dhabi Group, one of the largest groups in the Middle East, backs Warid
Telecom. HH Shaikh Nahyan Mabarak Al Nahayan who is also Minister of Higher
Education of UNITED ARAB EMIRATES leads the group and Scientific
Research.Warid Telecom started its operation in May 2005 from Pakistan.

Warid Telecom has implemented a new and modern corporate identity as a result of the
dynamic changes taking place in the telecom industry in Pakistan. With a reflection of a
new strategy, its aim is to be perceived not only as a telecommunication operator of voice
services, but also as a universal provider of comprehensive communications services for
both residential and business customers. Warid's corporate identity seeks to reflect the
changes in telecom sector in relation to helping customers keep pace with rapidly
changing technology in the field of communication, and to harmonize the customers'
perception of our brand with the quality and range of our services. Its objective is to
provide optimum level of support and care through its maximum network coverage and
clear connectivity that Warid has committed to provide.
Warid Telecom decided to opt for GSM (Global System for Mobile Communication)
technology as it is the global standard for digital cellular telephone service. GSM
networks support enhanced data applications and more than 1 billion customers in 109
countries are using this technology. Warid Telecom would be launching its cellular
services based on 900 and 1800 GSM technology, in order to optimize the utilization of
frequency, thus ensuring the highest quality and service.

c. THE PROPOSAL: -
Our group has proposed to take WARID all over PAKISTAN. At present WARID is
only working in the major urban centers of PAKISTAN. Even though it is easy to work
in these cities due to the availability of infrastructure and manpower but at the same time
working in these cities means tough competition and slow growth. Our proposal will
allow WARID to target a new market with less or in some cases no direct competitors.
In the beginning of our dream to take WARID all over Pakistan, we only want to take
WARID to the following ten cities of Sindh.
• Sanghar
• Mir Pur Khas
• Shikarpur
• Tindu ALLAH Yar
• Tharparkar
• Thatta
• Omerkot
• Badhu
• Gotki
• Jaccobabad

For our proposal to take a practical shape we have devised a strategic plan, the salient
features of which are given below.
d. STRATEGIC PLAN: -
The managerial process of maintaining a viable fit between the organization’s
objective, skills and resources and it’s changing market opportunities is called a strategic
plan.
1. STRATEGIC PLANNING: -
Strategic planning calls for actions in three key areas. The first is managing a
company’s business as an investment portfolio. The second involves assessing each
business’s strength by considering the market’s growth rate and the company’s position
and fit in that market. The third is establishing a strategy. For each business, the company
must develop a game plan for achieving its long run objectives.
Corporate strategic planning involves four planning activities:
1. Defining the corporate mission
2. Establishing strategic business units (SBUs).
3. Assigning resources to each SBU.
4. Planning new businesses, downsizing, or terminating older businesses.
Once the corporate strategic planning is done then each business unit working under a
corporation does its strategic planning, separately from other SBU’s.

2. STRATEGIC PLANNNIG OF WARID: -

In this part of our project we would be explaining the current strategic planning of
WARID and our proposed changes in it. It is pertinent here to mention that WARID is an
international company working in many different countries. We in this project are only
concerned with the working procedure of WARID in Pakistan. When it comes to WARID
Pakistan then steps no 2-4 is skipped in the overall corporate strategic plan since there are
no SBU’S of WARID in Pakistan. The basic strategic planning of WARID is thus done,
by considering WARID (Pakistan) as a single business unit. For the sake of simplicity the
future references to WARID (Pakistan) in this report would be made as “WARID” only.

2.1 WARID’S POSITION IN THE GROWTH SHARE MATRIX: -

The corporations to get an idea about the market position of the different SBU’S
commonly use the growth share matrix approach. To get a fair idea about the current
market position of WARID we placed WARID in the growth share matrix. The findings
of our analysis are given below.
In the growth share matrix the vertical axis measures the annual growth rate of the market
in which the business operates while the horizontal axis weighs the relative market share
of the business as compared to the largest competitor.
We have placed WARID as a Question mark in this matrix. The reason being that the
growth rate of the telecom industry in Pakistan is very high and WARID has a low
relative market share as compared to MOBILINK, which has the highest market share.
2.1.1 ANALYSIS OF THE FINDINGS: -
Even though WARID at present is a “question mark” but there isn’t any need to panic
for them. MOBILINK as we all know is the pioneer of the mobile services in
PAKISTAN. WARID compared to it is still young in the market and the growth rate for
WARID is not bad, rather it is higher than MOBILINK in the past few years. What
WARID need is to keep pumping money in its developmental and marketing budget and
increase its customer base. This is the only way in which it can hope to become a star in
the growth share matrix.
3. THE STRATEGIC PLAN: -
We did the strategic planning of WARID in the following steps.
3.1 MISSION STATEMENT: -
The first requirement of a strategic plan is a well-elaborated and a practical mission
statement. The proposed mission statement of WARID is as follows:

“ WARID is committed to serve the needs of the community by providing

services of superior quality at a fair price to our customers; to do this so as to earn
adequate profits, which is required for the enterprise to grow all over PAKISTAN;
and by doing so becoming the market leaders in the country.”

SIGNIFICANCE: -
 Our proposed mission statement suggests that WARID wants to earn profits but its main
aim is to expand and become the market leader. Our proposal is in line with our mission
statement.
3.2 SWOT ANALYSIS: -
The overall evaluation of a company’s strengths, weaknesses, opportunities and threats
is called SWOT analysis.
PRESENT POSITION: -
WARID has a marketing intelligence system, which works to track trends and
developments by monitoring the key micro and macro environmental factors. Despite that
WARID has not been able to identify SINDH as a land of opportunity. Thus they
certainly have performed their SWOT analysis differently to us.
PROPOSED POSITION: -

EXTERNAL ENVIRONMENT ANALYIS: -

The scanning of the macro environmental forces (demographics, economic, etc) and
significant micro environmental factors (customers, competitors, and distributors) lead us
to believe that Sindh is the right area to introduce our services. According to our scanning
the people of the targeted cities of Sindh want a mobile service as good as WARID. For
this trend of the people of Sindh we have identified the following opportunities and
threats for WARID .
OPPORTUNITIES: -
A major purpose of environmental scanning is to discern new marketing opportunities.
The analysis of the Sindh’s environment landed us in to this great area of opportunity,
where WARID can definitely excel. The opportunities of growth are great in these areas
of Sindh. The major share of the population is young and mature. The economic
conditions are good enough to afford our services. Thus there is a strong likelihood that
WARID develops a huge market for its services.
THREATS: -
In some of the ten cities in which we are launching our services MOBILINK already
exists. So there is a threat that people may reject our services in favor of MOBILINK.
A potential threat can also be seen in the higher costs involved ands its potential returns.
CONCLUSION: -
After doing the SWOT analysis of WARID, we asked ourselves the following questions.
1. Does WARID have the critical capabilities and resources needed to deliver the
customer benefits to the people of the targeted cities?
2. Can WARID deliver the benefits better than any actual or potential competitors?
3. Will the financial rate of return meet or exceed the company’s required threshold of
investment?

The answers to all these questions according to us are “yes”, which assured us that the
opportunity for WARID to introduce its services in Sindh has got high attractiveness and
high success probability.

INTERNAL ENVIRONMENT ANALYSIS: -

 It involves the scanning of the working relationships between the depts. Since we can’t
have any access into the internal environment of WARID thus we can’t say anything
about the present position of their internal environment.

3.3 GOAL FORMULATION: -

After the SWOT analysis the next step is to develop a specific goal for the planning
period.
We have set the following simple goals for WARID in this strategic plan. They appear as
follows in the order of their importance.
• To grab the largest market share in all the ten cities of Sindh and hence increasing the
existing growth rate in the whole market by 12%.
• To increase the ROI to 10% within two years of operations in Sindh

3.4 STRATEGIC FORMULATION:-

Strategy is a game plan for getting to the goals, after much deliberation we have
unanimously decided that the most effective strategy to achieve our goals in Sindh would
be the “overall cost leader ship strategy”. On a whole we have proposed “focus strategy”
for WARID which would allow it to use differentiation strategy in some targeted
segments.
OVER ALL COST LEADER SHIP
This strategy focuses on achieving the lowest production and distribution costs so that it
can win a large market share. This strategy may give a problem that other firms can
compete with still lower costs and hurt the firm using cost leadership strategy.
RATIONALE: -
We think that over all cost leadership strategy is the best way to go in Sindh due to the
following reasons.
• People of Sindh are not as demanding when it comes to quality
• Cost effectiveness rather than quality is more likely to grab market’s attention in
this case
• In some of the ten cities WARID is not going to face any competitors so they can
build a good share of loyal clientage
• In the cities where MOBILINK is already present the lower rates would help
WARID to grab the major share
• Based on our analysis we can carefully say that there is little or no probability of
this strategy backfiring.
OPERATIONAL EFFECTIVENESS AND STRATEGIC ALLIANCES: -
In the cities where WARID is already working we propose the following changes in
their strategies.
• At present WARID is working on over all cost leadership strategy in the entire market
• We propose that they adopt focus strategy and work on differentiation strategy in
some segments of the market.
• WARID should try to form a promotional alliance with a leading mobile company
such as nokia.
• WARID should also try to form a service alliance with some company.
3.5 IMPLEMENTATION
We are pretty confident that the strategic plan we have proposed can be carried out
effectively.
For any strategic plan to be implemented properly, it is important that the employees
have the skills and the shared guiding values. Synchronization in style of working is also
very important. In our view WARID has the capacity and the capability to implement the
strategic plan which our group has designed.

3.6 FEED BACK AND CONTROL

Tracking the results obtained from the implementation of the current strategy and
monitoring the new developments so as to respond to them is very important for the
success of any firm.
For WARID to become successful in Sindh, it is very important for them to get the
feedback of the people. The findings in the feed back would be very important in
allowing WARID to achieve the desired results.
4. TARGET MARKET: -
As mentioned earlier WARID should focus to expand its network in the following
cities of Sindh:
1- SANGHAR, MIR PUR KHAAS, SHIKAR PUR, TANDO ALAH YAR,
THARPARKAR, THATTA, UMERKOT, BADHU, GHOTKI, JACCOBABAD
WARID should focus to cover these mostly rural areas where cellular services are very
rare
For this particular target market WARID has to take into consideration the following
factors which will affect its target market strategy
LEVEL OF COMPETITION:
This factor also effects WARID’S target market strategy warid has to take into
consideration its only competitor, which is MOBILINK. WARID should take into
account the services which, MOBILINK is providing in those areas.
POWER OF BUYERS:
What is the power of buyers? Who will buy this package of warid, as the power of buyers
is low as compared to big cities due to the lack of facilities warid has to undergo this
factor to in order to do proper and effective target market strategy
POWER OF SUPPLIERS:
NOW again the power of suppliers is another factor which influences WARIDS over all
game plan for these areas so proper supplies are to be maintained in order to carry out the
tasks assigned to the target market
COMPANYS OBJECTIVE AND RESOURCES:
Warid has to also look into its resources whether enough finances, marketing facilities are
there to proceed with its objectives or not this is another main factor in analyzing the
target market
TARGET MARKET STRATEGIES:
There are many target market strategies but WARID according to us should apply the
following
DIFFERENTIATED TARGET MARKET STRATEGY:
WARID will focus on different segments of the target market and will give different
packages and incentives for the different segments
Now for this differentiated target market strategy there are many factors which will affect
WARID differentiated target market strategy these are
COMPANY RESOURCES:
Warid has to see whether enough resources are there in order to carry out the over all
game plan of differentiated target marketing strategy factors like human resources,
production resources, company’s image financial resources all these are to be taken into
consideration
PRODUCT LIFE CYCLE STAGE:
This is another important factor that what is the current product life cycle stage of warid
whether its In the recession, trough, decline or peak stage, and also the BCG growth
matrix i-e. WARID has to see where it stands in the BCG growth matrix in order to apply
its target market strategy successfully
MARKET VARIABILITY:
What’s the level of market variability in these areas of SINDH as the market variability is
not the same in these areas of SINDH warid has to take into consideration this factor too
COMPETITORS MARKETING STRATEGIES:
Warid has to see that its biggest competitor MOBILINK is applying which strategies in
order to penetrate into the market, warid has to apply its strategy in such a way that it
should be more effective then the other competitor’s strategies
Now focusing on the segments of the target market, warid focuses on the
following segments of the target market
STUDENTS:
For students having age between 15 to 30 warid should launch a package with low rates
better messaging facilities i-e both MMS and SMS facilities and good GPRS facilities in
very low rates
BUSINESS MEN:
AS mostly in these areas the main source of earning is business so warid wishes to launch
a package for this particular strategy, which contains low call rates and facilities like
different rates of goods and commodities in accordance with the day to day transactions,
the current condition of the business markets in those areas etc.
OTHER:
IN this warid focuses on all the customers other than students and businessmen they can
be government employees, housewives, working women, farmers or whatever. This
package will contain very low call rates and good SMS AND MMS facilities and another
new facility of HAPPY WEEKEND in which very low call rates will be provided to
customers at weekends all over Pakistan and on all networks.
SO currently warids target market strategy is to focus on the above mentioned segments

POSITIONING:
The other important step in order to make WARID come out with flying colors is
its positioning i.e. how the consumer perceive about the product so in order to position
warid way ahead than its competitor different factors and ideas and strategies are to be
taken into consideration the following are some attributes due to which warid will
position itself in a prominent and efficient manner.
 1-LOW RATES
 2-WIDE NETWORKING
  3-DIFFERENT PACKAGES
 4-EDGE INTERNET AND MMS SERVICES
These are the some factors which positions warid way ahead of its competitors as the
current strategy of warid is to go all over Pakistan and currently Sindh’s most rural areas
are taken into consideration where there is either no cellular service or very few other
competitor cellular service providers are there.
The positioning strategy:
in order to carry out a distinctive positioning strategy warid needs to identify all the
possible competitive advantages
and these are all mentioned above but the most important and other competitive
advantage is of FRANCHISE CENTER services in all these areas of Sindh warid will
construct more and more franchise centers in all the areas in order to provide customers
services near there homes they wont need to go longer distances to solve their cellular
service based problems because of the great number of franchise centers they will be able
to solve all their problems regarding warids cellular service just like at home
Other than this there are other several other competitive advantages of warid such as no
busy networks ,better networking facilities ,easy access to international communication
modes etc.
WARIDS POSITIONING STATEMENT:
“IT IS FOR ALL THOSE POTENTIAL CONSUMERS OF CELLULAR
SERVICE WHO WANT TO COMMUNICATE AND ENJOY THE FACILITY OF
CELLULAR SERVICE AT A VERY LOW COST, WARID TENDS TO PROVIDE
THEM WITH SUCH A SERVICE WHICH CAN MAKE ALL THEIR WISHES COME
TRUE”
Different positioning strategies are there some major are as follows
 1-ATTRIBUTE POSITIONING
2-USER POSITIONING
 3-PRODUCT CATEGORY POSITIONING
 4-BENEFIT POSITIONING
 5-QUALITY OR PRICE POSITIONING
now in order to do better and satisfactory positioning warid focuses on the
“QUALITY OR PRICE POSITIONING”
The major competitive advantage that warid enjoys is its price and quality of the product
and that is cellular service which is an intangible product, and in this type of positioning
the product is positioned as offering the best value for money
Now as far as the quality of the product is concerned warid enjoys an advantage over the
competitors because in these rural areas of SINDH only one or 2 cellular service
providers are there and sometimes people complain that those cellular service providing
companies have sometimes network problems due to which the customers are unable to
call or communicate with whom they want to get quick communication, WARID’s
network is based on all international standards which guarantees no blockage of network,
clear voice communication and no network issues which might stop the users from
communicating secondly a major advantage is of the government taxation when a user of
any other cellular service recharges his or her account 10% of the recharge are deducted
as a governmental tax but in the case of warid suppose the user recharges his or her
account for rs.100 exact 100 rs. Will be transferred to his or her account no deduction is
there.
AS far as the pricing is concerned warid has different packages with different pricing
which are very cheaper as compared to the other cellular services, especially warid was
the first to initiate the package of free sms services and call rates within the country any
where without any roaming charges are very low to all the networks whether it is a
cellular service or a landline number warid offers the best possible low possible rates to
all its potential customers .AND in accordance with the mission statement warid will
continue to position itself with this strategy in these rural areas of SINDH by giving the
best possible competitive advantages in order to position itself as the leaders of the
market.

NEW PRODUCT DEVELOPMENT: -

After segmentation of the market, identification of the target market and positioning of a
company the next step is the new product development. It is new product development,
which shapes a company’s future. In this project our group is giving a comprehensive
working plan for WARID, and no marketing plan is complete without giving due
consideration to developing new products. The new product development process for
WARID is given below.
1. IDEA GENERATION: -
The new product development process starts with the search of ideas. After the
introduction of WARID’S services in Sindh, they would need to develop new ideas to
capture a larger market share. 3 of the members of our group came up with three different
ideas for our services in Sindh. Following were those ideas.
1.Introduction of video conversation in the targeted areas of Sindh.
2.Providing the facility of mobile T.V in Sindh.
3.Get into an agreement with Nokia, this agreement would require Nokia to produce
revised versions of 1100 and 1110 exclusively for WARID. In these revised versions the
mobile usage would exclusively be in Sindhi language and WARID would be the
exclusive purchaser of these mobiles. WARID would then provide its existing services
(the most attractive one being SMS) in Sindhi language. This Sindhi language service
would only be compatible with these mobiles. WARID then would sell these mobiles
(with Sindhi as the user’s language) along with its services (in Sindhi language) as a
package.

2. IDEA SCREENING: -
After the idea generation, next came the step of screening those ideas. Efficient idea
screening allow the companies to proceed with the best possible idea in the development
phase. We made the best of our efforts to avoid making “Go-error” or a “Drop-error”. A
Drop-error occurs when a company dismisses a good idea in the idea screening while a
Go-error occurs when a company permits an idea to move into development and
commercialization.
In this part of the new product development we roughly estimated the market size,
product price, development time and costs, manufacturing costs and rates of return to
weigh the practicality of the idea.
After much deliberation we rejected the first two ideas and decided to progress with the
third above-mentioned idea due to the following reasons
Rejection of the first idea: -
The first idea was to introduce video conversation in Sindh. Introduction of video
conversation was going to be a high budget developmental project. We were prepared to
make those expenses only if the rate of return was high. Video conversation requires
expensive mobiles with the cameras located on their front sides. The majority of the
population of Sindh comes under the lower middle class and is not very educated. The
main problem, which we would have faced in marketing that idea would have been the
higher costs involved for the customers. We didn’t think that the majority of our targeted
audience would have been fascinated by that idea so we unanimously rejected the first
idea.
Rejection of the 2nd idea: -
The idea of introducing a mobile T.V again called for expensive mobiles and a better-
educated audience. The major share of our targeted market had none of those two
attributes. Had we progressed with that idea, there was no way we could have recovered
the costs involved at a desired rate. These were the reasons why we rejected the 2nd idea
in the idea screening.
The accepted idea: -
Or group unanimously decided that WARID should go ahead with the 3rd idea due to the
following reasons.
• An opportunity to use a mobile and the connection services in Sindhi language will
surely fascinate the target market. The fact that Sindhis for the first time would be
allowed to use SMS and other services in their mother tongue would surely allow
WARID to capture a huge market share.
• Nokia 1100 and 1110 are user-friendly mobiles and have a good market reputation.
This factor would also play a big role in the sale of this package.
• As mentioned earlier, the competition for WARID is only MOBILINK and that too in
only some of the targeted cities. In those cities where WARID is the sole service
provider this service would surely allow WARID to sweep the market. Even in those
areas where MOBILINK is currently the market leader, this idea is going to help
WARID to capture a good part of the market
• The cost of the project is high but the expected rate of return is high enough to go
ahead with this project.
• The fact that this product is intended for the middle and the lower middle class of
Sindh makes the target market of this product huge. As this service is going to be
provided in the relatively cheaper mobiles of Nokia, it would be easier for the
targeted audience to afford this product.
Once this idea gets a go- ahead, the next hurdle would be to convince Nokia on this idea.
Nokia should agree to work with WARID in this project because of the following
reasons.
• The cost of this project for Nokia is not going to be great.
• Only production costs would be involved for them. Nokia won’t need to make any
marketing expanses, as WARID would purchase the entire no of mobiles produced in
the first five years.
• They would be able to make a guaranteed good profit.
Should Nokia agree to supply the required no of mobiles, WARID should then proceed
to the next step in the new product development i.e. the concept development.
3.CONCEPT DEVELOPMENT: -
Attractive ideas must be refined into testable product concepts. A product concept is an
elaborated version of the idea expressed in meaningful consumer terms.
In developing a product concept of our idea for WARID, we asked ourselves the
following two questions:
1. Who will use this package provided in Sindhi language?
2. What primary benefit would this product provide?
The answers to these questions provided us with the following product concept
“A mobile phone service in Sindhi language for those who face difficulty in using
mobile services provided in English”
This product concept would be used for the first time in the market and thus we would
face no initial competitors while introducing this service in the market. Thus this
innovation would be utilized in communicating and promoting this concept to the Sindhi
market.
3. CONCEPT TESTING: -
In this part of the new product development firms test their product concepts. There are
two main methods to test the product concepts.
1.By conducting a survey to check the consumer appeal of the product concept.
2.By performing the conjoint analysis.
Conjoint analysis is used to check consumer preferences for alternative product concepts.
I n this method the utility levels, which a consumer attaches to varying levels of the
attributes are checked.
Keeping these two methods in mind we decided that a survey would be a better method
for WARID to check their product concept. The reason being that there are minimal
hypothetical differences, which can be, provided to the consumers if they use the conjoint
analysis.
In their survey they should ask the people about the need level, perceived value, gap level
in the utility between this service and other services and the purchasing intention of the
customers. If about 50% of the surveyed people answer that they would definitely buy
this package then WARID should go ahead with this project and go one step further in
their new product development program, which is devising the marketing strategy for the
new product.

4. MARKETING STRATEGY: -
We devised a preliminary marketing strategy in the following three steps
4.1 TARGET MARKET: -
The target market for this new product would be every Sindhi who has a difficulty in
using the mobile services in English. As mentioned earlier, this package would be
targeting the middle and the lower middle class. In the first year WARID should be
aiming to capture at least 15% of the target market with an aim to recover the cost of this
project in the first year. In the 2nd year WARID should be aiming to make a planned
profit of Rs.10 m.
4.2 PLANNED PRICE, DISTRIBUTION STRATEGY AND MARKETING
BUDGET FOR THE FIRST YEAR: -
This package would be offered in a combination of the services of WARID, with Nokia
1100 and Nokia1110. The package with Nokia1100 can be priced at Rs 3500 and that
with the Nokia 1110 at Rs3700. According to the agreement Nokia 1100 should cost
WARID Rs 2500 and Nokia 1110 Rs 2600 as WARID would be buying these mobile in
bulk. The distribution networks would be the same which, have already been established
for WARID’ normal services in Sindh. A marketing budget of at least Rs one crore
should be approved for the first year of this service.
4.3 PROFIT GOALS IN THE LONG RUN: -
WARID should plan to capture 60% of the market in the first 3 years. We hope that
WARID would increase its profits by 7 %every year. The direct source of profit would be
the sales of this package but the real profit would be achieved simply due to the increase
in our customer base. The more the customers the more the revenues by selling the
prepaid cards and the post paid connections. Another major source of revenue is the
profit earned whenever a call is received on WARID from any other network. (Whenever
a call is received on WARID from any other mobile service or from PTCL, 50% of the
charges go into WARID’S account.)
5. BUSINESS ANALYSIS: -
After developing the product concept and the marketing strategy, we next proceeded to
analyze our proposal’s business attractiveness for WARID. In this part the product’s
estimated sales, costs and profits were calculated.
5.1 ESTIMATING TOTAL SALES: -
The sales generated through this product would be measured through the no of
customers who will buy these packages. As this is a one-time purchased product, so the
sales would rise at the beginning, peak and would decline later.
5.2 ESTIMATING COSTS AND PROFITS: -
To evaluate the merit of this service, we decided to use the following approach

5.2.1 BREAK-EVEN ANALYSIS APPROACH: -

In this approach we estimated the no of sold packages to break-even with the cost
structure. This analysis has been performed by using the package with Nokia 1100.
Following are the results of this analysis
• The total cost of this service is estimated to be Rs 30 million.
• One sold package with Nokia 1100 would give WARID an approximate direct profit
of Rs 100.
• Approximately 0.5 million such packages would be required to break-even with the
costs. This estimation includes the indirect profits (generated from the sales of
prepaid cards, post paid connections and the calls received from the other networks).
CONCLUSION: -
This analysis suggests that, to be able to break-even in one year WARID would need to
sell 1 million packages. It means that each city would need to sell 50,000 packages. It is a
daunting task but not an impossible one. We are assured that WARID would get close to
achieving this task even if doesn’t exactly reach there.
6. PRODUCT DEVELOPMENT: -
In this part WARID should perform the following activities:
ALPHA TESTING; -
We recommend that WARID should operate these mobiles and check their compatibility
with WARID’S services, if the functional efficiency is up to the desired standards then
they should proceeded to beta testing.
BETA TESTING: -
In this step they should give a sample of mobiles along with the connections to a
selected group of consumers who are deemed to be the early adopters. They should get
these users to report their liking and disliking about this package. If the consumers are
satisfied with this package and they are happy to be able to use all mobile accessories,
send messages and dial numbers in there own language then WARID should proceed to
the next step i.e. the market testing.

7. MARKET TESTING: -
Once the management is satisfied with the functional performance of the product, the
product is ready to be dressed up with a brand name and packaging and put into a market
test. The amount of market testing is influenced by the investment costs and risk on one
hand, and the time pressure and research cost on the other. There are many types of
market testing such as sales-wave research method, simulated test marketing and
controlled test marketing but we advise that WARID should use the following method
for market testing:
7.1 TEST MARKETS: -
WARID should chose three representative cities, which in our view are Jaccobabad,
Thatta and Sanghar. WARID should carry a full advertising and promotional campaign in
these markets. This testing should have the following attributes:
• 3 test cities should be used. Jaccobabad represents the most developed out of the
10 cities. Thatta and Sanghar represents the under developed cities with a major
portion of population which, is illiterate when it comes to understand English.
• Tests should last not more than 4 months
• If the results are good in the test markets then WARID should immediately
promote this new product in the entire target market.

8. COMMERCIALIZATION: -
The lone major cost, which WARID is going to face while commercializing this
product, will be the marketing costs. Bill boards and ads on PTV should be the focus of
WARID. Following are some of the factors which, are going to influence
commercializing this product:
8.1 WHEN: -
WARID is going to be the first entry in the market with this product as there are little
chances that any other company can come up with the same idea. Thus WARID would
enjoy the “first mover advantage.”
8.2 WHERE: -
The commercialization should be done in all the ten cities. The reason being that the
major portion of Sindh should be encouraged at once to communicate in Sindhi language
with the help of this service. The major factor in the success of this package is going to
be the speed in which people adopt this product, thus it is important for WARID to go
about this campaign aggressively in all the ten cities.
8.3 TO WHOM: -
This service doesn’t require WARID to get into the details of early adopters or further
segment its market on the basis of adoption. This is a simple and easy to understand
service. And as indicated by the surveys, this service is the need of the hour for the
Sindhi people so WARID can make use of the old mass marketing approach in this
case.