N. C. S.

Subject: Marketing

Presentation: Telenor

Class: MBA Morning

Semester: 1st

Submitted to: Respected:

Yousaf Iqbal Tareen

Submitted by: Ibrar Ullah

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 Table of Content

• History of Telenor
• Telenor in Pakistan
• Vision
• Value
• Mission statement
• Objectives
• CEO’s & Directors
• Products & Services
• Market Segmentation
• SWOT analysis
• Marketing Mix
• Competition
• Conclusion

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History of Telenor

Telenor is the leading telecommunication company in Norway,

which is one of the most advanced telecommunication markets in
the world. Norway has one of the world’s highest penetration rates
for mobile, fixed line digital telephony, personal computer and
internet usages. The history of Telenor goes back a long way in
1885, when telegraphic service was established under the name of
“Telegrafverket- a government institution”. The Norw1egian
Telegrafverket has had several names throughout the time of
existence.

From 1989, Televerket was also allowed to compete in the market

for value added services. In 1994, the Parliament again decided to
convert Televerket into a state-owned public limited company.
This took place in November in the same year. In early 1995,
Televerket AS changed its name to Telenor AS, with a new and
business oriented organization structure.

Worldwide Coverage

The Telenor Group is committed to engage in the local

communities where we operate. Take a look at our latest initiatives
in our operations worldwide.

• Bangladesh
• Denmark
• Hungary
• Malaysia
• Montenegro
• Norway
• Pakistan
• Russia
• Serbia
• Sweden

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 • Thailand
• Ukraine

Telenor in Pakistan

Telenor Pakistan is 100% owned by Telenor ASA and adds on to

its operations in Asia together with Thailand, Malaysia and
Bangladesh.

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 crossed many milestones and grown in a number
of directions, making Telenor Pakistan a leading telecom operator
of the country.

They are the fastest growing mobile network in the country, with
coverage reaching deep into many of the remotest areas of
Pakistan. In the most difficult terrains of the country, from the hilly
northern areas to the sprawling deserts in the south, at times we are
the only operator connecting the previously unconnected.

They are 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.

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 164
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.

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Did you know that...?

• the Telenor Group is currently ranked as the world’s seventh

largest mobile operator (in terms of subscriptions)
• the revenues were NOK 111 billion in 2008
• the Telenor Group has 164 million mobile subscriptions
worldwide (2008)
• we have telecom operations in 13 countries

In one day at Telenor...

• 38,800 employees go to work in 13 countries

• an average of 75,000 new customers join us

Telenor’s Portfolio

Following are the main business of Telenor.

The Internet

TV and Broadcast

Mobile Phone Services

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Our Vision

Our Vision is Simple: We’re here to Help

We Exist to help our customers get the full benefit of

communication services in there daily lives.

The key to achieving this vision is a mindset where every one of us

works together: Making it easy to buy and use our services.
Delivering on our promises. Being respectful of differences.
Inspiring people to find new ways.

Values

We believe in our values which are as following:

Make it Easy

We're practical. We don't complicate things. Everything we

produce should be easy to understand and use. Because we never
forget we're trying to make customers' lives easier.

Keep Promises

Everything we set out to do should work, or if it doesn't, we're here

to help. We're about delivery, not over promising, actions not
words.

Be Inspiring

We are creative. We strive to bring energy to the things we do.

Everything we produce should look good, modern and fresh. We
are passionate about our business and customers.

Be Respectful

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We acknowledge and respect local cultures. We do not impose one
formula worldwide. We want to be a part of local communities
wherever we operate. We believe loyalty has to be earned.

Mission Statement

Telenor is a customer focused business mobile service

operator/telecommunications Company that seeks competitive
advantage in quality and valued added service in both prepaid and
postpaid categories through state of the art technology. Telenor
relies on building trusting relationships with customers, owners,
employees and society in general.

Objectives

Following are the major objectives of Telenor:

Objectives 2006-07 2015

ARPU(Average Revenue Per $4 $6- $8
User)
Market Share in terms of 10% 40%
Subscribers
Market Penetration 9% 30%
Market Share in terms of 7% 30%
Revenue
EBITA(Earning before 5% – 6% 10%
Interest, Tax and
amortization)
Unprompted Brand 20% 90%
Awareness

CEO and Group Executive Management

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The Chief Executive Officer (CEO) is in charge of the day-to-day
management of the Telenor Group. The Group Executive
Management consists of heads of key business areas and functions
at Telenor.

Jon Fredrik Baksaas

President and CEO
• Appointed: 21 June 2002
Sigve Brekke
Executive Vice President and Head of the Telenor Asia operations
• Appointed: 1 September 2008
Morten Karlsen Sørby
Executive Vice President and head of the Nordic mobile and fixed
network operations of Telenor
• Appointed: January 2003
Jan Edvard Thygesen
Executive Vice President and Head of the Central/Eastern
European
• Appointed: 1999
Trond O. Westlie
Executive Vice President and Chief Financial Officer (CFO)
• Appointed: 2006
Bjorn Magnus Kopperud
Executive Vice President and Head of Group Human Resources

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 • Appointed: January 2006. Since 2003 he has served as Head
of Group Human Resources
Ragnar H. Korsæth
Executive Vice President and Head of Global Coordination
• Appointed: January 2006
Hilde M. Tonne
Executive Vice President and Head of Communications &
Corporate Responsibility
• Appointed: 1 September 2007

Board of Directors
The Board is responsible for the management of the Telenor Group
and the proper organization of its operations.
Harald Norvik
Chairman
• Appointed: 31 May 2007

Bjørg Ven
Vice-Chairman
• Appointed: 1 October 2001
Burckhard Bergmann
Board member
• Appointed: 29 May 2008

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John Giverholt
Board member
• Appointed: 8 May 2003
Olav Volldal
Board member
• Appointed: 31 May 2007
Harald Stavn
Board member, employee representative
• Appointed: 20 June 2000

Products and Services

The Telenor Group provides a wide range of innovative services

that are available throughout the world. Here is a selection.

Mobile Fun

Following are the mobile fun service of Telenor.

Mobile Sports

And he scores!!! You just got a text message

alerting you about a sportive highlight. Luckily
you don’t have to wait until you get home to
watch that winning moment – you can watch it directly on your
mobile.

Available in: Norway, Sweden, Pakistan, Thailand, Bangladesh,

and Malaysia

Mobile Music

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Right now there are 1 million songs ready to download to your
mobile. You can share these digital rights management-free songs
with your friends and family or transfer them to your mobile
phone, mp3 player and PC. Share that funky music!

Available in: Norway, Sweden, Serbia Pakistan, and Malaysia

Mobile TV

Keep your favorite TV shows available in your

pocket and watch them anytime, anywhere. You
can easily access live TV channels on the move so
you don’t have to miss out on any of the action.
Keep yourself updated on news, sports, entertainment and more,
directly on your own mobile phone.

Available in: Norway, Sweden, Pakistan, and Malaysia

Mobile Communities

Get out and about, and stay connected and in

touch with your friends. With Telenor you can
access communities such as Windows Live
MSN and Facebook on your mobile and keep your friends close
anytime, anywhere.

Available in: Norway, Sweden

Mobile Interaction

Following are mobile interaction services providing by Telenor.

Community Information Centers

500 Community Information Centers (CICs)

offer high speed Internet access to rural areas in
Bangladesh, where the nearest Internet facilities

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would otherwise be at least 20-30 miles away. The service was set
up by Telenor's Bangladeshi mobile operator Grameenphone.

Available in: Bangladesh

Health Line

Health Line provides 24/7 access to medical

services for mobile users in remote areas, several
miles from the nearest doctor. All
Grameenphone subscribers in Bangladesh can get medical
assistance directly over the phone.

Available in: Bangladesh

ApnaPCO - Share a Mobile

Can you imagine life without a phone – at all? That is

the case for many people living in some of the most
rural communities in Pakistan. ApnaPCO is a
business-in-a-box solution, which allows people in
remote areas to share a mobile phone where there are
no other alternatives – making life a little easier.

Can you imagine life without a phone – at all? That is the case for
many people living in some of the most rural communities in
Pakistan. ApnaPCO is a business-in-a-box solution, which allows
people in remote areas to share a mobile phone where there are no
other alternatives – making life a little easier.

Available in: Pakistan

TeleDoctors

Are you a Telenor Pakistan subscriber and in need of

expert medical advice? Simply dial 1911 to get in

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touch with experienced doctors who can help you with your
problems – wherever you are in the country.

Available in: Pakistan

Mobile in Flight

By using AeroMobile secure mobile communication

technology you can now call your colleagues,
customers, friends and family whilst in flight from
your own mobile phone.

Available in: Worldwide

Mobile at Sea

Most people have experienced little or no

connectivity at sea. Maritime Communications
Partner enables mobile phone coverage by installing
and operating the ship borne radio networks, linking
the vessels with public networks via satellite.

Available in: Worldwide

Mobile Marketing

Register your phone number with your favorite

shops and services, and receive sms’s with up to the
minute information on the latest events and offers.
Don’t get first in line, avoid the queue altogether!

Available in: Norway, Sweden

Child Internet Protection

The Security Shield technology offered by Telenor

protects children from accessing sites that have not
previously been approved or from coming into

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contact with unsuitable people on the Internet. Children have their
own login with a protected desktop controlled by parents.

Available in: Norway, Sweden

Mobile Commerce

Mobile commerce services of Telenor are as follow:

Telenor easy paisa

In areas with limited access to regular banking

services and the Internet, people can use their mobile
phones to transfer money – anywhere, anytime. The
easy accessibility of the service will bring new
opportunities to DiGi subscribers with insufficient access to
regular banking services.

Available in: Malaysia, Pakistan

BillPay - Pay by Phone

BillPay is an innovative service, the first of its kind

in Bangladesh. It provides an electronic bill
payment service for utilities services and for other
companies. Customers can pay their utility bills and other bills
through this service regardless of whether they own a mobile
connection or not.

Available in: Bangladesh

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Research - the Future is Now

The Telenor Research & Innovation unit is an innovation hub for

the Telenor Group. With three locations in Norway and a satellite
in Kuala Lumpur, Malaysia, Telenor R&I employ 236 people from
23 countries.

Our main research areas are:

Wireless Broadband FutureSIM

Connected Objects Content and

Services

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 Profitability in Emerging

Market Segmentation and Positioning

Segmentation is the process of dividing the total market for a good

or service into several smaller, internally homogenous groups.
Since Telenor is a customer oriented and quality driven company,
it segments its market on the basis of various different dimensions.

• Market dominated by low-end, low-ARPU customers (largely

Untapped)
• Relatively large emerging middle class segment (Basic in
Telenor Terminology)
• Strong youth culture with needs similar to other markets.
• Private postpaid almost non-existent.
• Small but profitable (high ARPU) Corporate/SME segment.
• Women a largely untapped segment.

Market Segmentation & Product Positioning

Market Today Feature Existing Profitability

Segment Year Product
Estimat
e
Youth/ 25% 27% Djuice, 29%
Students TalkShaw
k

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Women 10% 20% TalkShawk 21%

Financially 40% 23% TalkShawk, 20%

Constrain Telenor
t Azadi
Corporate/ 25% 30% Postpaid 30%
SME Packages

SWOT Analysis

An overall evaluation of Telenor’s Strengths (S) Weakness (W)

Opportunities (O) and Threats (T) are as follow:

Strengths

• Network quality & design

• Superior customer care
• Financial Strength
• Excellent Coverage & Distribution.
• Commercial Launch of LDI & mobile services
• Contract with Siemens & Nokia
• Brand image of Quality
• PTA initiatives
• E-commerce usage.

Weaknesses

• Relatively low market share

• Low profit margins
• Negative cash flows in the initial years

Opportunities

• Favorable Macroeconomic indicators

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 • low cellular market penetration
• Inefficiency & poor performance of other mobile networks
• Co branding e.g. Ufone with ABN AMRO
• Strategic Alliances & Infrastructure Sharing Facilities
• International Mobile Equipment Identity System

Threats

• Rolling Customers
• Privatizations & deregulations- increased competitions.
• Grey Traffic
• MNP mobile number portability
• Wireless technology at boom
• Public pay phones & calling cards usage where network is not
available
• Propagandas attacking brand image

Te l e n o r G r o u p S t r a t e g y

The Telenor Group has defined six strategic ambitions which it

aims to achieve by 2011. These are:

To deliver increased profitable growth

To strengthen our performance culture across the Group

To make responsible business a competitive advantage

To provide a superior customer experience

To ensure best practice benchmarking across the Group

To drive change and constant renewal

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S t r a t e g i c P l a n n i n g P r o c e s s (Marketing Mix)

According to Bearden (2001), Strategic planning requires a nice

combination of strategies with products and other corporate
resources. It requires the involvement of fair execution of
strategically plan from different functions like marketing,
production, finance, distribution and others. For strategy
formulation, there is a variety of decisions which should be there
before its implementation. Where right entry mode strategy is
necessary, there is also a need of appropriate product-market
combination. Then other marketing mix elements should be given
importance because these elements can be the backbone for the
business success

Telenor’s product Strategy

To get the real fruits of more open market at regional level requires
the satisfaction of the demands of the target market and this
satisfaction can only be achieved if the product or service offered
in the market is suitable and acceptable for its purpose and this can
be obtained by adopting a regional product strategy suitable for
company and the market as well.

Telenor’s study indicates that it is acting quite on this concept that,

in order to be more competitive in the world market, firms should
shift their emphasis from local customized products to globally
standardized products that are advanced, functional, reliable and
low priced. But here low priced strategy be to compromise and
later on due to its quality, Telenor’s low price strategy takes shift
from low to high but competitive.

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Telenor’s decision to standardize or adapt its products is based on
cost/benefit analysis of what they believe the implications of
adaptation and standardization are for profitability and market
share. According to Doole (2000) in normal circumstances, the
cost of adaptation would be expected to be greater than the cost of
successful standardization. Telenor believes in long term
advantages and not in satisfaction of immediate demand, that’s
why they continue the exposure to the standardized products and
services which leads them to greater market share in the longer
term.

Our research shows that there are three factors which enforced the
company towards more standardized strategy and these are
illustrated in figure below.

• Homogeneity of markets
• Increase in number of regionalizing firms
• Identifiable international consumer segments

Summarizing it, regionalization forced the company to rethink

about its strategies towards product, to be more competitive in the
open market.

Telenor’s Price Strategy

Pricing across the borders is comparatively difficult from other

decisions though it is believed that pricing is the most flexible and
controllable marketing mix element. Companies operating in
different markets experience extraordinarily difference across the
borders. This can be due to the exchange rate difference and other
barriers. But in our study, this matter is not much sensitive because
of psychic distance factor. Cultural environment and a
geographical neighborhood influence the pricing policy of Telenor.
On the other hand, being a non member of European Union, it can
be totally opposite of the general strategies adopted by the
companies located in European Union.

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Telenor’s pricing policy is influenced by different factors among
them five are much important and they are indicated below:

• Market survival
• Sales growth
• Market position
• Maximization of Profits
• Maintenance of product’s quality

Though lower price is considered a suitable policy but in case of

Telenor, it is affected due to regionalization but not so much but
competition factor is given special consideration before
development of price strategy. That’s why Telenor has high price
strategy due to high quality products and services but at certain
level penetration price strategy is adopted to stimulate sales
growth.

Here, at this aspect if we talk about the standardization or

adaptation strategy of pricing, Telenor follows adaptation policy as
well because it allows each local subsidiary or partner to set a price
which is considered to be the most suitable for local conditions. On
the other hand, lack of control can be the weakness of this strategy
and it may require some cost for management.

Telenor’s Place Strategy

To manage the foreign channels of distribution is a key area in a

company’s efforts to be more competitive in the market. According
to (Doole, 2001), as products become more standardized across the
world, the ability to compete on customer becomes more vital.

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Channels of distributions developed by Telenor follow the cultural
traditions of the target market because it is important to understand
and manage cultural differences amongst different markets and
Telenor has deep analysis of the markets before developing its
positioning strategy because cultural differences add to control
difficulties. In regional marketing, Telenor is taking advantages of
his heavy infrastructural products and its financial worth. In our
study, we found that company is adopting those strategies which
are not used by the others commonly. To make a huge as well as
direct investment in the form of acquisitions and wholly owned
subsidiaries is high risky but more profitable decision for Telenor.

Open borders give a number of alternatives for position the

products and Telenor is using different distribution channels which
vary from market to market and country to country. As Telenor is
involved in telecommunication business so usually it doesn’t
involve in physical distribution but it has the partnership strategy
and on the local level, shops and customer care centers are used as
place strategy.

Telenor’s Promotional Strategy

According to our findings, there are a variety of promotional tools

which are used by Telenor to inform and motivate its valuable
consumers in the regional market. The company developed a
standardized promotional package which is sufficiently flexible
with the different ways in different cultures and norms. Besides it,
that package is also flexible in such a way, in which subsidiaries
can develop their own marketing positioning and related
promotional strategy.

During our study of Telenor as a regional company, we found that

the company builds up its promotional strategies with two basic
issues. First, the company should have the clear picture of the
objectives for regional marketing communication strategy and,
second is, how the company can combine the different promotional

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tools and activities for the higher level of cost effectiveness. On the
other hand Telenor’s regional marketing communication strategy
can be adapted because the market structures and distribution
channels can be different from market to market and country to
country. However, mostly these factors are not those, which can
said to be crucial for the company like Telenor.

Summarizing it, regionalization factor has influenced the Telenor’s

promotional part of marketing mix but in all the way it has positive
edge for the company and its business throughout the region.

Competition

As at 30 June 2008, Telenor Pakistan had a market share of

approximately 20%. In addition to Telenor Pakistan, there are five
other mobile operators in Pakistan: Mobilink, Ufone, Warid, Zong
(formerly Paktel) and Instaphone. According to data provided by
the Pakistan Telecommunication Authority (the PTA), as at 30
June 2008 Mobilink was the largest cellular mobile operator in
Pakistan with a market share of approximately 37%, Ufone had a
market share of approximately 20%, Warid had a market share of
approximately 17%, Zong had a market share of approximately
4%, and Instaphone had a market share of approximately 0.4%.

Major Competitor

Parameters Mobilink Telenor

Product Life Cycle Maturity Growth
Market share % 37% 20%
Coverage 900 cities 1100 cities
Product Portfolio Jazz Octane,TalkShawk,
Mobilink Telenor

Indigo, Azadi, Djuice

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 Ladies First,
Customer Base 17.2 million 3.6 million
Marketing Operations Excellent Good

Conclusion

Telenor is the leading telecommunication company, which are the

most advanced telecommunication markets in the world. The
Telenor Group is committed to engage in the local communities
where it operates.

In Pakistan telenor launched its operations in March 2005 as the

single largest direct European investment in Pakistan. The
company has crossed many milestones and grown in a number of
directions, making Telenor Pakistan a leading telecom operator of
the country. They are providing a service in almost 2500 cites of
Pakistan and it is most growing telecom industry in this country.

• In short it start its business when there is a very high

competition in market and take very little time to grow in the
market and now it has almost 20% market share in Pakistan
and standing at second place along with Ufone who also has
20%. They are now providing different services to its
customers at a high quality which helps them to progress
rapidly in country and in features their objectives shows that
in next few years the will become the market leaders in
Pakistan.

References:

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Principles of Marketing by Philip Kotler,

www.researchandmarkets.com/reports

www.telenor.com.pk

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