WARID TELECOM

REPORT ON

WARID TELECOM PAKISTAN

FOR

UNIVERSITY OF EDUCATION (Multan Campus)

BY

Mr. Inam-ul-Haq

BBA (Marketing), Roll# 1119

Mob# 03444446661

Email: Enamgee@yahoo.com

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ACKNOWLEDGMENT

”All the praise is for Allah, the most merciful and beneficent, who bless me with the knowledge, gave me the courage and allowed me to accomplish this task.”

I am especially indebted to all my teachers for instilling in me enough knowledge to be able to carry myself efficiently during my internship. SpeciallyMr.SohailChohan.

Secondly, I am bound to thank t all the staff of Warid Telecom, especially Mr.Faisal who helped me acquiring internship in Warid Telecom. In particularly their inspiring guidance, remarkable suggestions, constant encouragement, keen interest, constructive criticism and friendly discussion help me to learn and enable me to complete this report efficiently.

BYMr. Inam-ul-HaqBBA (Marketing), Roll# 1119

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Executive Summary

Internship was my first step in practical life, though which I learnt a lot and it has aided me in being well equipped with valuable experience that would help me once I enter the professional life after the completion of my studies. Internship offered to me was 4 weeks in marketing, operations, customer service and sales department.

During the month of July and August 2013, I worked in Warid Telecom as an internee. My association with this company was being a part of Warid Telecom. It was great experience for me. What i learnt at Warid Telecom over the weeks was how to get along with the people that I have to work with every day, building confidence and improving my skills. I tried to remain to the point, in writing the report. Brief history, management, organizational structure of Warid Telecom and my work at EFU building, Head Office Jail road Lahore. Suggestions for improvement/ Recommendations are also given in it.

This work is the collection of my observation and experience during the internship periodand afterwards. This internship has als prepared me for my future career. The experience has taught me responsibility, teamwork and how to handle problems occurring. Even though the nature of work was quite basic as an internee, nevertheless I got to see what practical life is. This report gives a profile of Warid telecom and an insight into the departments where I worked. This report also reflects my learning’s and experience at Warid Telecom along with my responsibilities and the task that I performed. Last part of the report consists of some recommendations and suggestions that I have given.

BYMr. Inam-ul-HaqBBA (Marketing), Roll# 1119

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Table of Contents

Topics Pg#

OVERVIEW OF THE ORGANIZATION………………………….. 8-13o Brief historyo Nature of the organization o Product lines and brand portfolio of the organizationo Strategies of branding o List of main clientso List of main competitors

ORGANIZATIONAL STRUCTURE………………………………..14-21o Organizational hierarchy charto Number of employeeso Introduction of all the departmentso Comments on the organizational structure

PLAN OF YOUR INTERNSHIP PROGRAM ……………………..22

TRAINING PROGRAM………………………………………………22-27

MARKETING DEPARTMENT…………………………..………….28-32

SALES DEPARTMENT……………………………………………….33-35

CUSTOMER SERVICES DEPARTMENT………………………….36-37

FINANCIAL ANALYSIS……………………………………………..38-49O Profitability Analysis

Net profit Margin Administrative Expense Ratio Operating Expense Ratio Return on Equity

o Liquidity Analysis Current Ratio

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Current Assets to total Assets Quick Assets Test Ratio

o Long term debt paying ability analysis Debt Ratio Debt to Equity Ratio

o Analysis for investor Earnings Per Share Dividend Payout Ratio

o Vertical and Horizontal Analysis of the Financial Statements

CRITICAL ANALYSIS ……………………………………………….50-51

SWOT ANALYSIS OF THE ORGANIZATION ……………………52-55

RECOMMENDATIONS FOR IMPROVEMENT……………………56

GLOSSARY ……………………………………………………………57-59

REFERENCES …………………………………………………………60

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INTRODUCTION

&

BACKGROUNDWarid Telecom

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INTRODUCTION

WARID Telecom is backed by The Abu Dhabi Group, one of the largest groups in the Middle East. The group is led by HH ShaikhNahayanMabarak Al Nahayan who is also the Minister of Higher Education and Scientific Research in United Arab Emirates.

Currently, The Abu Dhabi Group is operating a number of organizations in Pakistan, some of which are:

o Bank Alfalah

o United Bank

o Wateen Telecom

o Warid Telecom

HISTORY

WARID in Pakistan

In 2004, WARID Telecom International LLC, purchased a license for operating a nationwide mobile telephony network, (WLL) and long distance international (LDI) for $291 million US dollars and was the first venture of WARID Telecom International LLC.

In May 2004, Mr. Hamid Farooq was hired as the Chief Executive Officer of WARID Telecom Pakistan. Prior to being hired, Mr. Farooq was working as the Executive Vice President of MOBILINK (an Orascom Telecom Company).

WARID Pakistan launched its services in May 2005. Within 80 days of launch WARID Pakistan claims to have attracted more than 1 million users.

•Customer Base

According to Pakistan Telecommunication Authority, currently Warid Telecom has more than 10 million subscribers in Pakistan and is ranked as the fourth largest operator in Pakistan. Warid Pakistan claims it has the largest "post-paid" subscriber base.

•Assistance to residents of Quake Stricken Areas

Warid has been one of the highest contributors in development work carried out in the quake hit areas of Pakistan after the devastating event of 8th October 2005, furthering their stance of 'We Care'

.

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Nature of Organization:

Warid Telecom is a private limited registered company. Having registered trademark. The total investent is debt-equity based with the ratio of 40:60. Means the 40% of the total investment is loan based and the other 60% is equity based. The company have licensed to sell MOBILE GSM connection and provide of all kinds of mobile connection services to run bussiness.

VISION

"To be the leading national communication provider with a strong international presence."

BRAND VALUES:

• Quality • Simplicity • Innovation• Honest• Friendliness

Quality - Warid want to make a difference to people's lives. Their optimism is contagious. They are passionate about what they do and they have confidence in themselves.

Simplicity - For them, clarity comes through simplicity. Warid recognize that they are people communicating with other people. Warid are always direct and easy to understand.

Innovation - Warid constantly look to do things differently and in a better way. Warid give color to all that they do. Warid is ready to push the boundaries and take risks.

Honesty - Warid are always open and honest. Warid says what they do and we do what they say.

Friendliness - Warid enjoys working and succeeding together by building close relationships. While warid has a sense of purpose, warid also has a sense of humor. Warid consider the needs both of their customers and of each other.

Warid Telecom's 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. We strive to provide optimum level of support and care through our highly skilled and motivated team of professionals and through maximum network coverage and connectivity.

The Warid New Look

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Product line :Sim card and cell phones

Portfolio: prepaid and postpaid

Strategies:

THE PRODUCT BRAND STRATEGY- This strategy involves the assignment of a particular name to one and only one product as well as one exclusive positioning.

THE LINE BRAND STRATEGY- In this strategy the line responds to the concern of offering one coherent product under a single name by proposing many complimentary products.

The RANGE BRAND STRATEGY- Range brands bestow a single brand name and promote through a single promise a range of products belonging to the same area of performance.

UMBRELLA BRAND STRATEGY – The same brand supports several products in different markets. Each of them has its own advertising tools and develops its own communications.

SOURCE BRAND STRATEGY – This is identical to umbrella branding strategy except for one key point – the products are now named directly. Within the source brand strategy the family spirit dominates even if the offspring all have their own individual names.

ENDORSING BRAND STRATEGY - The endorsing brand gives its opproval to a wide diversity of products grouped under product brands, line brands or range brands.

List of main clients:

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Army officers Students Businessmen Tribal areas poplin

List of Competitors:

INSTAPHONE INSTAPHONE is the small cellular company in Pakistan providing quality services to their clients. From time to time, it announces packages that are cheap; they have a lot of packages available, you can choose the one that suit your needs. Wider network coverage and cheap call rates make it a choice for the moderate users.

INSTAPHONE has a good infrastructure, only one thing which is missing is GSM network. About more than 0.3 million customers are availing the services of the company.

MOBILINK

MOBILINK is the largest cellular company in Pakistan. It is a subsidiary of Osasco Telecom. MOBILINK being the pioneer of introducing cellular networks in Pakistan established themselves as the

major cellular company covering almost every nook and corner of the country. One of their well-renowned products for the Pre-paid users is “MOBILINK Jazz”.

The company is operating on a large infrastructure and has the biggest subscriber base in Pakistan. It is present in more than 5,000 towns and cities throughout the country and its subscriber base is over 25 million customers.

UFONE

UFONE, a subsidiary of PTCL, was established to provide cellular services across Pakistan. It is currently providing quality services across

the country. The company was the first one to launch GPRS and MMS services in Pakistan. Moreover, it was also the very first one to launch Internet Bill payment in the country. The company mostly targets the youth for its products. One such product for the Pre-paid segment is “UFONE Prepay”. It has a subscriber base of more than 12 million customers.

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TELENORTELENOR Pakistan is wholly owned by TELENOR group, a Swedish company, operating in 13 countries and providing communication services to consumers across the globe. Their products hit the market at rates that are lowest in the industry providing affordable ways of communication.TELENOR is the only mobile phone company in the country to offer the Value Added Service of EDGE (an enhanced form of GPRS that enables devices to browse internet at an enhanced speed). TELENOR was also the very first at providing the facility to transfer balance through its EASY LOAD facility. Its more popular products include “TELENOR Talkshawk” and “TELENOR Djuice”. It owns a customer base of more than 9.5 million users.

ZONGChina Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile. The pioneering overseas set up of China Mobile came through acquisition of a license from Millicom to operate a GSM

network in Pakistan.So far CMPak has invested more than US$ 700 million in the telecom sector in Pakistan and an additional US$ 800 million will be invested till the end of year 2008.

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ORGANIZATIONAL STRUCTURE

&

STRATEGY

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Message from the Chairman

"We are confident that like Abu Dhabi Group's hallmark in banking industry of Pakistan, Warid&Wateen Telecom would not only reach out to every corner of the country but will also set new trends and standards of providing the latest technology, unparalleled quality service and customer care in the telecommunication industry of Pakistan"

WARID TELECOM TEAM

Board Executive Committee Warid Telecom

Mr. Bashir Ahmed Tahir

Vice Chairman and Member of Advisory Committee

Mr. Bashir Ahmad Tahir is a Pakistani national. Key positions currently held by Mr. Bashir.

Tahir are CEO Abu Dhabi Group, Board Advisory Committee and Bank Alfalah Limited.

Mr. Pervaiz A. Shahid

Board Director

Mr. Parvez is a Pakistani national with a vast experience of more than 30 years in the banking sector. Currently Mr. Pervaiz is Executive in-charge of Strategic Planning Division, Bank Alfalah and Authorized Power of Attorney Holder of Warid Telecom.

Mr. Marwan Zawaydeh

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Board Director/ CEO

Mr. Marwan’s association with Warid Telecom started in June 2004 as Group Chief Technical Officer and BEC Member. He currently is the CEO of Warid Telecom.

Mr. Lim ChuanPoh

Board Director

Mr. Lim, 52, joined Singtel in October 1998. He was appointed EVP (Strategic investments) in February 2006. In October 2006, Mr. Lim assumed the position of CEO (International). He is responsible for Singtel’s business groups through strategic investments in the region.

Mr. Quah

Board Director

Mr. Quah is currently Vice President (Business Management), International Group in Singtel, overseeing new investment opportunities as well as existing investment s in the region.

Warid Telecom Key Management

Warid Telecom’s main strength and focus is its employees. Warid Telecom believes this will be its key differentiating factor and a recipe for success. The key management team includes:

Hamid FarooqChief Executive OfficerMr. Hamid Farooq is the Chief Executive Officer of

Warid Telecom (Pvt.) Ltd. Prior to joining Warid, Mr. Farooq was working with Mobilink as Executive Vice President/CFO and Company Secretary. He has extensive telecom experience, which spans over 10 years and also has wide-ranging local and overseas training in financial management, technical & IT, HR, knowledge sharing and policy development. Mr. Farooq has previously held the posts of Chief

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Accountant & Administrator, Canadian Occidental Petroleum Ltd. (COPL), Chief Accountant, Petro- Canada (Pakistan) Inc and Country Manager/Finance Manager, DHL Pakistan Limited/TCS. Mr. Farooq has an MBA degree and is also an accountant by training.

Mr. ShahzadRauf

CSO

Prior to joining Warid Telecom in 2005, Mr. Rauf was founder and CEO of WebLight Productions Inc providing B-2-B e-commerce supply chain management solutions for the food industry. He has over 10 years of experience in Finance and IT departments of public sectors in USA.

Mr. Thomas Yeo

CCO

Mr. Thomas joined Warid Telecom as CCO in October 2007. He joined from Singtel and has been associated with singtel for more than 25 years.

Mr. JavedMushtaq

Chief Information Officer

Mr. JavedMushtaq is a seasoned IT professional backed up by 21 years of domestic and global experience. He has worked both in private and public sectors.

Mr. ZafarIqbal

GM Human Resources and Administration

Mr. ZafarIqbal brought with him 35 years of experience with MNCs in Human Resources,

Corporate affairs, Procurement, and Administration in Pakistan and abroad.

M. Farrukh Hayat

GM - Sales and Distribution

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Mr. Farrukh Hayat is responsible for sale/ distribution of scratch cards and other products of Warid telecom on national basis. He has over 20 years of well rounded experience in Marketing, Sales, Distribution and management.

Mr. Omer Haider

GM Government and Regulatory Affairs

Mr. Omer A. Haider has 16 years of experience in telecom sector. He has worked with insta, paktel and Alcatel at diversified portfolios involving commercial, sales, marketing and business development.

Mr. Tariq Gulzar

GM Audit, Risk and Corporate Governance

Mr. Tariq Gulzar brings with him over 15 years of experience in assurance, internal audit, audit, accounting, risk management, and general consulting in Telecom and Media Industries.

Mr. AdeelBajwa

GM Legal Affairs & Contracts Management

Mr. Adeel k. Bajwa is an experienced legal professional with corporate background in Finance and Commercial law. In addition to managing legal affairs at Warid Telecom, his portfolio extends internationally as well.

Mr. Ahmad Kamal

GM Customer Services

Mr. Ahmad Kamal has over 17 years of telecom experience in Pakistan. He has the exposure of working with the country’s most renowned telecom companies like Mobilink, Ufone, Digital Communications and DVCOM Ltd.

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MsAsma Khan

GM International Business

Mr. Asma khan is responsible for International roaming and International Business (LDI operations) at Warid Telecom.

Miss VardaZafar

GM Marketing

Mr. MoinQadri has 11 years experience in the field of advertising and branding. He has worked for various leading brands with experiences in Pakistan, Afghanistan, Indonesia, and UAE.

Mr. Muhammad Ahmed

GM Managerial Accounting and Revenue Assurance

Mr. Muhammad Ahmed possesses 12 years of professional experience in the field of Accounting and finance.

Mr. Muhammad Amir Shahid

GM Financial Accounting

Mr. Muhammad Amir Shahid has 13 years experience in Pakistan. In his current role, he is responsible for financial accounting at Warid Telecom.

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Organizational Structure

Number of employees:

In Warid telecom the number of employees is roughly 2800 to 3000 which are officially hired in all franchises of warid telecom.

ORGANIZATIONAL DEPARTMENTALIZATION

Warid Telecom (Pvt.) Ltd. Head office is in EFU House on Jail road, Lahore. Warid has the maximum number of Sales and Customer Service Centers countrywide, backed by two state-of-the-art Contact Centers of international standards that are equipped with the right facilities to ensure real-time online services. Their highly trained and wellgroomed team of Customer

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Service Executives provides round-the-clock-support. Warid has setup Corporate Lounges, with a customer-friendly environment to provide personalized care to our corporate clients. Furthermore, an extensive network of franchises, kiosks and mobile units ensure easy and convenient accessibility. Different divisions, department and functionaries working in the head office are:

1. Marketing

2. Human Resources

3. Financial Accounting & Revenue Assurance

4. Sales & Customer Services

5. Administration

6. Products & Services

7. Procurement & Logistics

8. Legal Affairs

9. Engineering & Information Technology

10. Audit & Risk Services

11. Quality Assurance

12. International Business

13. Public Relations

14. Operations and Project Management

15. Govt. Relations

In the head office there are also offices of top management including CEO office.

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Comments on the organizational structure

No centralized decision making in franchise. No proper guidence in frachise. Sitting area is not proper. There is no proper enforcement of rules and regulations. Less employees and work load is more No brochures are available NO seprate facility for postpaid customers. This franchise is the smallest as compared to other franchises in multan NO parking area.

Plan of internship:

My internship was in Warid Telecom located at 36-Rahma commercial centrekutchery road Multan. it is the second big franchise of warid in Multan. The Head of the Franchise is Mr. Faisal.I started my internship from 10th july till 10th august, 2013

During theintership I rotate in following departments.

Marketing : one week

Operations : one week

Customer service : one week

Sales Department : one week

Training Program:

I was sent in marketing, i was assigned to sale 10000 load in one day, which Iaccomplished and 20000 in next 2 days and about 70000 in one week which was accomplished.

Then we managed stalls at different places in Multan

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Multan Golf Tournament

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Warid UBL Sign Contract

Warid Telecom and Bank Alfalah sponsored eight professional international climbers of Altitude Experience team to climb K2 the most difficult and second tallest peak in the world. Seen in the

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picture are Mike Farris and Chris Klinke Experience team leaders with ShahzadRauf – Chief Strategy and Operations Officer, Farah Hussain head of Public Relations and other officials of Warid telecom with the Altitude Experience team.

 

May 21, 2008: Mr. Marwan Zawaydeh unveiling the new logo of the Warid telecom

Warid wins the Brand of the Year Award in 2008 for ‘The Best Cellular Company in Pakistan’

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Warid Telecom has won ‘Brand of the Year Award’ again in 2008, in the category of ‘The Best Cellular Company in 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.

Affinity Partners

Bank Alfalah WOL Mobile Zone Chimera 4B Group VIVA ARY Faysal Bank Pak Libiya

Major Shareholders

Sheikh NahayanMabarak Al Nahayan

His Highness Sheikh NahayanMabarak Al Nahayan - Member of the Royal Family of Abu Dhabi, Minister for Higher Studies and Chancellor of the University of Al Ain.

His Highness Sheikh NahayanMabarak Al Nahayan is the Chairman of the Company and takes keen interest in the management of Warid Telecom.

His Highness Sheikh Nahayan is the Federal Minister for Higher Education and Scientific Research for UAE and is also Chairman of Union National Bank, Abu Dhabi, Chairman & Director United Bank Limited, Pakistan, Chancellor Al Ain University and President at the Higher Colleges of Technology, Abu Dhabi. His Highness is also the former Chairman Bank Alfalah Limited, Pakistan

Sheikh Suroor Bin Mohammed Al Nahayan

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His Excellency Sheikh Suroor Bin Mohammed Al Nahayan - Chamberlain of the Royal Amiri Courts and Member of the Royal Family of Abu Dhabi.

His Excellency Sheikh Suroor Bin Mohammed Al Nahayan was the Governor of UAE Central Bank for the last 10 years and a major shareholder of Abu Dhabi Commercial Bank. He is a member of the Royal Family and holds interest in Bank Alfalah Limited and United Bank Limited in Pakistan.

His Excellency Sheikh Suroor is the major shareholder of Abu Dhabi Commercial Bank, Abu Dhabi, UAE. Other interests include shares in joint stock companies as well as interest in commercial and real estate properties both in UAE and abroad. His Excellency Sheikh Suroor also owns the five star Hotel

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MARKETING DEPARTMENT

STRUCTURE FUNCTIONS

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Department Hierarchy:

Marketing Department

Marketing Department is called a revenue-generating department of an organization.Marketing Department undertakes market research and gives feedback to managementabout customers needs and wants on the basis of which, products and services aredeveloped and positioned to give value to the customers. Thus Marketing department ofan organization plays a pivotal role in its business development, growth & expansion.During my internship I worked with WARID marketing department. Through workingthere I gain so much practical knowledge that will help me during my practical life. Forunderstanding the work flow and the operation of the department we have to move incertain manner. We have to look the key operation the structure of the department andin the end the focus will be on the critical analysis.

Number of employees: 700

So we will move in the pattern describe below:-

• Marketing strategy of WARID

• Market segmentation of WARID

• Marketing mix of WARID

• Promotional strategy of WARID

1. Marketing Strategy of WARID

For understanding the marketing department work flow and its function we must haveclear picture of the WARID’s marketing strategy. For developing clear understanding ofmarketing strategy of WARID there is no one line statement or clear vision of marketing department so we have to move traditionally .Classically, Marketing has been all aboutthe “four P’s”: Product,

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Manager

Sub manager

Marketing Team

WARID TELECOM

Place, Price and Promotion. The marketer identifies a targetmarket, defines the product and Pricing to appeal to this market and a strategy to deliverthe product to the market. Thus the marketer is the steward of the value proposition,ensuring that the firm is delivering maximum value to its customers.We will briefly discuss below the marketing strategy, product planning, development &management, Pricing strategy, distribution strategy and promotional strategy: -

Marketing Strategy

Normally, a marketing strategy identifies the target markets, the desired position in eachmarket and the marketing mix that will persuade those target markets to part with theirmoney. Market is targeted through market segmentation. Segmentation can be done onfour types i.e. Demographic Segmentation (age, gender, race/ethnicity, household type,home ownership, education, employment, income etc.), Geographic segmentation.Positioning oneself by product can do positioning differentiation, positioning byproduct usage, positioning against a particular competitor, positioning against an entireproduct category, positioning by association and positioning by problem, MarketingMix includes P’s i.e. Product, Price, Promotion and place.

TARGET MARKET

WARID’s 80% revenue comes from just 20% customers, who are corporate customersand other big and small business organizations. The main focus of WARID marketingefforts is on retaining and satisfying that 20% chunk of key customers at any cost. Forthis purpose, WARID is now established Corporate Customer Services Centers in majorcities to take care of these vital customers. Apart from these important customers, WARIDtargets general public and other small business companies for sale of its landlinetelecom services like telephone, fax, Internet, as well as other services like CLI, VMS,and Digital Facilities etc.

2. Market Segmentation

Basically WARID segmented its market on two bases

• To better implement customer services features, segment the market on a

customer basis:

– Corporate

– Resident ional

• on the basis of services as:

– Telephony

– Data

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– Video

WARID has segmented its market for its services and products to effectively deal with itscustomers. Some of its services like Universal Access Number, Co-Location centersand virtual private network are specially targeted at corporate customers and businessconcerns. The other services like new telephone connections, digital services etc. aremeant for mass market. The services like Internet, fax facility etc. are targeted at boththe corporate and general customers.

POSITIONING STRATEGY

As WARID is the sole provider of the landline telecom services in the country; it is themarket leader in providing these services because there are no competitors to challengeits market leader status. Thus presently WARID is facing no problems in positioning itsservices in the market as a market leader because it enjoys monopoly in the industry.However, with the deregulation of telecom sector WARID is gearing up itself to maintainthis market leader position, on the other hand competitors are doing to challenge it.

MARKETING MIX

Product Planning:

In WARID, so far products had been planned and developed by the engineeringdepartment and marketing professionals had no role in product planning as there was nomarketing department in the Company. But now marketing professionals have beeninducted in the Company and they will definitely have a close coordination withengineering department in planning and development of products to satisfy customersdesires. It should also be kept in mind that WARID is a technical organization enjoyingstate-of-the-art telecom technology. The services offered by WARID are built in thetechnology and with the passage of time; WARID rolls out these products in the market.even many products, which have become obsolete in developed countries, are launchedas new products by WARID. But we cannot deny the fact that being monopolist, WARID isdepriving customers of many digital services that are available free in many othercountries. However, as the Marketing department has been established now, it isexpected that in future there will be close coordination and liaison between marketing professionals and engineers for planning and developing customers oriented products.WARID is also in the process of hiring brand Managers to manage its different productsin a thorough professional way.

Pricing Strategy:

Being a government organization, WARID is not authorized to determine the prices ofits products itself, the Telecom Regulator Authority viz. Pakistan TelecommunicationAuthority (PTA) fixes the prices of telecom services. The process is such that wheneverWARID intends to increase or reduce the rates of its services, it submits its Proposal toPTA for approval. PTA then calls consumers’ representatives, journalists and otherinterested groups for discussion on the

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proposal. After listening to the viewpoints of allthe interested parties, PTA gives its decision. If PTA approves WARID’s proposal, thenew rates are enforced. It may be mentioned here that telecom technology is only technology whose rates are on the decline with the passage of time. WARID alsorationalizes its tariff with the passage of time. Tariff rationalization process started in1997 as part of GoP Telecom Sector policy for privatization of this sector. It was mainlyfocused on rebalancing the domestic process like NWD, international, local call, line rent etc. Rebalancing is completed by the end of 2003 (as per Tariff rates) with theobjective to position WARID for competition.

4. PROMOTIONAL STRATEGY

WARID is using following components of promotional mix for the promotion andPublicity of its product/services.

Advertising:

In promotional mix, WARID’s main stress is on advertising in print and electronic media.WARID periodically places its advertisements in print media on services like “H/Qshotline 0800-44544”, “Caller line identification (CLI)”, “Voice Messaging Service”,“Digital Facilities”, “WARID Prepaid Calling Cards”, “Inquiry 17”, “Complaint 18”,phone bill cards prepaid telephone etc. to remind the customers of these services.Sometimes, corporate ads are also released to print media to mark special occasions.WARID’s Commercials on “Prepaid Calling Card”, “CLI”, “Voice Messaging”, “DigitalFacilities” etc. are also broadcast immediately on electronic media as reminders toCustomers.

Sales Promotion:

WARID charges 1/3rd rates on national calls from 06:00 pm – 07:00 am and local callsare free from 11:00 pm to 06:00 am to promote the usage of its telecom network.Moreover, WARID offers special rate packages on special occasions like RamadanPackage and EID package, which offer customer reduced rates for specific timings.

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MARKETING DEPARTMENT

STRUCTURE FUNCTIONS

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Sales hierarchy

Number of employees working :700-750

Sales operations:

Selling sim cards in franchise. With complete identification process i.e. verifies the buyer, its ID card.

Sim cards are sold to trusted dealers that can further sell and on shops and markets with same verification process.

Sales department Functions:

Methodolgy:

we use sales methodology i.e. market skimming price in sales the reason of this sales methodology is, when warid entered in telecommunication it had tough competitors like paktel, instaphone and Telenor which were

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Regional sales manager

District sales manager

Franchise sales manager

Selling staff

WARID TELECOM

well known and popular so warid had to go through something which will make it popular and familiar, and it tried hard and now working and competing for survival due to this reason warid did not use market price penetration. Our sales methodology is good but our copetitors are more strong and familiar among people.

Type of selling

The type which is used for selling is personal selling in which either the customer comes to the franchise or the sim cards are sold to dealers and shopkeepers who are trusted. In this type full verification is done, customer ID card and other information is taken.

Sales return Procedure:

There is no sales return procedure nor in warid neither in any other telecommunication in Pakistan.

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CUSTOMER CARE & CUSTOMER SERVICES

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Customer care & Customer Services Department

WARID has established its Customer Services Department at different levels the overviewof the said department is as follows.

Corporate Customer Care Center Operation Region Level Customer Services Centers Help Lines For Complaint & Enquiry

Now we briefly introduce the functions of these:

Corporate Customer Care Center

To facilitate Corporate Customers WARID has established Corporate Customer CareCenters at all Operation Regional Head Quarter Level, in all the meager cities countrywide. The Corporate Customers can get their problems resolved under one roof in a onewindow environment by dialing UAN 111-20 20 2. The Customer Relation Officersregister the complaints & forward these to the related office.

Customer Services Centers

To facilitate consumers WARID has established Customer Services Centers at all TehsilLevel cities/offices. Here the consumers can use Fax Facility, Voice Telephony forLocal/NWD/ISD dialing. On divisional Offices Level duplicate phone bills may also beobtained from C.S.C’s.

Help Lines

WARID offers state-of-the-art call center network to its all type of valued customers forconvenient frequently asked Questions, Complaints regarding their services, T/Noenquiry.

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FINANCIAL ANALYSIS

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Ratio analysis

Ratio analysis is a form of financial statement that is used to obtain a quick indication of a firm's financial performance in several key areas. the ratios are categorized as short-term solvency ratios, debt management ratios, asset management ratios, profitability ratios and market value ratios.

Ratio analysis as a tool possesses several important features. The data which are provided by financialstatements, are readily available. The computation of ratios facilitates the comparison of firms which differ in size. Ratios can be used to compare a firm's financial performance with industry averages. In addition, ratios can be in a form of trend analysis to identify areas where performance has improved of deteriorated over time.

Because ratio analysis is based on accounting information, its effectiveness is limited by the distortions which arise in financial statements due to such things as Historical cost accounting and inflation. Therefore, ratio analysis should be only used as a first step in financial analysis, to obtain a quick indication of a firm's performance and to identify areas which need to be investigated further.

Liquidity

Liquidity position

Liquidity position of the company continues tosuffer since a setback in FY08.This trend has been witnessed despite increasing current assets as current liabilities grew more sharply. The short term borrowings of the company have been mounting for the last few years and this has contributed to the current trend of the current ratio. It may be noted that the company holds large amounts of cash and banks balances compared to the other companies in the business. This may provide an edge to the company over its competitors.

Current ratio

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The current ratio is one of the most commonly cited financial ratios. Current ratio measures the firm's ability to meet its term obligations.

Current ratio has shown a negative trend by 0.30. This is due to 164.68% increase in current liabilities and 136.91% increase in current assets . This shows that liquidity of WARID has decreased. Standard for current ratio is generally 2 times the more predictable a firm cash flow, the lower the acceptable current ratio. Because WARID is in a business with a relatively predictable annual cash flow, its current ratio of 1.50 should be quiet acceptable.

Quick Ratio

The quick ratio (acid-test) ratio is similar to the current ratio except that it excludes inventory, which is generally the least liquid current asset.

Quick ratio has been shown a negative of 0.22 times. This is due to increase in current liabilities by 164.68% and 136.91 in current asset. Inventory value has also risen. This has caused the quick ratio to fall this year. a quick ratio of 1.0 or greater is generally accepted, but as with current ratio, what value is acceptable depends on the industry.

Although the liquidity stance of the company is fairly satisfactory at the moment, but a continuation of the current negative trend may spell trouble for the company.

Activity ratio

Average collection prepaid

ACP or average age of accounts receivable is useful in evaluating credit and collection policies, The average collection period is meaningful only in relation to firm's credit terms.

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AcP has improved to 24days in FY08.

Improvements in these areas have played a major role in Warid revival in FY09 fter facing a loss in FY08.

Average payment period

The average payment period or average age of payables is useful in evaluating that how much a firm uses its payables in financing activities.

APP has shown a posoitve trend by 134 days in FY09. This is due to meaningful changes in the payment procedures adopted by the finance section of Warid.

Total Asset turn over

Total asset turnover indicated the efficiency with which the firm uses its assets to generate sales.

Warid's turnover its assets 0.38times in FY09 which is 0.10 times less than last year, This is due to increase in total asset by 112.08% and decrease in sales by 10.7%.

Debt ratio

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The debt ratio measures the proportion of total assets financed by the firm's creditor. Thehigher the ratio, the greater the amount of other people's money being used to generate profits.Debt ratio of warid has shown a very positive trend in FY09. d=Debt ratio has almost increased by 4.07%. this is due to increase in asset and decrease in liabilities. The value of 66.70% indicated that Warid has financed more than half of its assets with the debt.

Debt equity

Debt equity ratio is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders equity. it indicates what proportion of equity and debt the company is using it finance its assets.

Debtor’s turnover

debtor's turnover ratio shows how long people normally take to pay a firm for purchase on average.This ratio is beneficial when more than one period is calculated.

This ratio of Warid has shown a positive trend of 0.45 due ti effective collection policies.

Leverage

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The higher the ratio the greater the firm's degree of indebtedness and the more financial leverage it has. It has increased by 8.18%.

Time interest Earned

Times interest earned ratio, sometimes called the interest coverage ratio, measures the firm's ability to make contractual payments. This interst earned ratio has also increased to 15.43% in FY09 as compared to -5.26 in FY08. warid has certainly shown a tremendous improvement in its ability to make contractual interest payments.

Profitability Ratio

Gross Profit margin

The gross profit margin measures the percentage of eah sales Rs remaining after the firm has paid for its goods. The higherthe gross profit margin, the better.

We can see that gross profit mrgin of warid has declined in FY09. This is mainly due to reduction in gross profit by 25.81%. This decreased is due toless revenue by 10.7% and increase in cost of services by 1.03%.

Operating Profit Margin

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The opetating profit margon measures the percentage of each sales Rs remaining after all costs and expences other than interest, taxes and preferred stock dividened are deducted.We can clearly see that OPM of warid is showing a neqative trend. Although operating expenses that decreased by 14.8% of OPM is still shown a decline of 6.52% This is mainly due to reduction in gross profit by 25.81%. This decrease is due to less revenue by 10.7% and increase in cost of services by 1.03%.

We can clearly see that OPM of Warid is showing a negative trend. Although operating expenses that decreased by 14.82%

Net Profit Margin

The net profit margin measures the percentage of each sales Rs remaining after all costs and expenses including interests, taxes and preferred stock dividened, have been deducted. The highr the Firm's net profit margin the better the firm is.

Earning Per share

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The firms EP's generally of interest to present and potential stockholders and management. EP's represents the number of Rs earned during the period on behalf of each outstanding share of common stock.

Return on total assets

Return on total assets often called return on investment (RO), measures the overall effectiveness of management in generating profits with its available assets. Higher the firm's return on total assets , the better it is.

We can see that ROA has shown a significant increase of 8% in FY09.

This is mainly because of increase in net profit by almost 423.95%.

Return on common equity.

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The return on equity (ROE) measures the return earned on the common stockholders, investment in the firm. Generally, the higher these returns, the better off are the owners.

Price/earning ratio

The price/earnings(P/E) ratio is commonly used to assess the owner's appraisal of share value. The P/E measures the amount that investors are willing to pay for each Rs of a firm earnings. The level of this ratio indicated the confidence that investor have in the firm's furure performance. The higher the P/E ratio the greater the investor confidence.

Horizontal and Vertical analysis

Horizontal Analysis

It is conducted by setting consective balance sheet, income statement or statement of cash flow side-by-side and reviewing changes in individual categories on a year-to-year or multiyear basis.A horizontal financial statements analysis is done by restating amount of each item or group of items as a percentage.

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Vertical Analysis

Like horizontal analysis this can also done for balance sheet and income statement. here we assign 100% value to any key item of balance sheet or income statement and then see portion of other items in this percentage.

Vertical Analysis

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CRITICAL ANALYSIS

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Critical Analysis

The following points were observed by me during my training period and these are kind of major ones I could find as the overall performance of the company is really satisfactory and furthermore nothing is perfect or gives 100% results.

There is not good stability in the organization relating to the customer dealing. The use of information technology is not as per international standard. The marketing strategies are not so much satisfied. There is a fluctuation in the working (production) of the firm. The internal customers (employee) are not satisfied about their jobs. Huge gap between the juniors & seniors. Major part of employees are not satisfied, as someone are gaining so much for nothing &

someone are not gaining sufficient for so much. Financial arrangements are not sufficient. Professionalism is not considered important.

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SWOT ANALYSIS

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SWOT Analysis of Warid

STRENGTHS WEAKNESS OPPORTUNITIES THREATS

What is it?

A SWOT analysis is to identify and analyze the Strengths and Weaknesses of your organization, as well as the Opportunities and Threats revealed by the information you have gathered on the external environment.

Who uses it?

The team members and the managers.

Why use it?

To develop a plan that takes into consideration many different internal and external factors, and maximizes the potential of the strengths and opportunities while minimizing the impact of the weaknesses and threats.

When to use it?

While developing a strategic plan or planning a solution to a problem, after you have analyzed the external environment (for example, the culture, economy, health, sources of funding, demographics, etc.).

How to use it:

1. Internal Analysis: Examine the capabilities of your organization. This can be done by analyzing your organization's strengths and weaknesses.

2. External Analysis: Look at the main points in the environmental analysis, and identify those points that pose opportunities for your organization, and those that pose threats or obstacles to performance.

3. Enter the information you have collected in steps one and two into a table as illustrated below:

POSITIVE NEGATIVE

INTERNAL Strengths Weaknesses

EXTERNAL Opportunities Threats

4. You can use this information to help you develop a strategy that uses the strengths and opportunities to reduce the weaknesses and threats, and to achieve the objectives of your organization.

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Strengths

1. Healthy animosity in adjustable exchange with the accomplishment of Telenor and Warid Telecom in 2005 & CM Pak in end 2007.

2. Mkt sub base continues to abound at CAGR of 1.9% bulletin aback Dec 07 while Warid is outgrowing the mkt at 2.38% CAGR.

3. Warid has been adapted itself through beat online writing and accession its adjustment coverage.

4. Provide latest and improve facilities due to partnership with leading brands.5. Service is beyond comparison as custumores are satisfied.6. Best network coverage in all areas.7. Innovations, as it tries to provide to superior level of facilities8. It’s the only mobile operator that is reducing tax charges.9. Warid is offering best voice quality services that are the result of their own optical fiber

network.10. Warid has offered these features first in Pakistan.

Friend and family 30 second billing Zoom unlimited Edge internet technology.

Weaknesses

1. High levels of taxation and accurate fees on operators, if unchecked, could impede mkt growth.

2. Fixed-line casework still bald in several of Pakistan's added apprenticed areas.3. Warid has apprenticed advantage in the rural areas.4. Expensive as many people are price conscious specially students.5. Less packages are offered.6. Advertisements play a vital role in promotions of new products and companies. It’s a

weakness of Warid that its advertisements are not aggressive as compared to its competitor Mobilink and Telenor.

7. Most people argue that Warid’s billing criteria is very complex to understand for a common man and it is too confusing.

8. Warid is spreading too many slogans at a time such as “be heard”, “be young”, “we care” etc. If a brand is positioned with multiple slogans within same segment with same products

9. There are number of competitors in the market and Mobilink is the largest competitor spread across the country. It is a weakness of Warid that its coverage area is low as compared to its competitor.

Opportunities

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1. With anchored bandage casework bald in rural areas, adjustable operators, including Warid, acquire opportunities to grab sub base there.

2. Growth in adjustable exchange set to acquire and may bad-tempered over 100mn by the end of 2008.

3. Growth of VAS –Mobilink and Ufone are aerodynamics WiMAX networks, while Telenor, Warid Telecom and CMPak are analytic at ablution adjustable TV services.

4. 3G licenses accustomed to be issued end 2008.5. Warid has covered almost the big and major cities and areas of Pakistan and all the major

road and motorways but still there is opportunity for warid to go into rural areas of Pakistan.

6. There is opportunity for warid telecom to capture new marketing plans to get more market share.

Threats

1. Intense animosity could acquire the aftereffect of causing operators to admission into bulk wars, causing a abasement in annual above and ARPU.

2. Political alternation could changeabout to bread-and-butter uncertainty, which could abstinent abutting entering investment plans.

3. Inflationary pressures acquire an appulse on spending on admonition needs.4. Implementation of custom appointment on handsets and admission in tax has a

abrogating appulse on abettor revenues and adjustable penetration.5. When warid has launched in Pakistan on 23rd march, 2005, there were already major

competitors in Pakistan including MOBILINK, UFONE, TELENOR, PAKTEL and INSTAONE.

6. Warid is a part of ABU DHABI GROUP that is a renowned group in the world working in major sectors like oil and gas, hospitals, universities etc. There is no telecom background of this group so warid has to be innovative as it is to cope up against this threat.

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CONCLUSION AND RECOMMENDATIONS

Conclusion and recommendations:

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With some changes at higher level including advisor to CEO, G.M Marketing much hasImproved this year in Warid Telecom market rating. Warid Telecom certainly hasPotential to capture good market and to give tough time to the competitors, but for thisat least following steps should be taken

Warid telecom is offering cheap rates for its prepaid and postpaid customers ascompared to its competitors .

Communication level with customers should be improved. Seth Culture should be avoided. Network should be enhanced to much more cities. There should be consistency of brand ambassadors, jingles, colors and graphics intheir

print and electronic media ads to create strong brand recognition. More regional departmentalization should be there, so as to create strong presenceand

market analysis at regional levels. More staff to should be hired in some departments to meet the requirements. There should be more decentralization and employees should be encouraged fortheir

ideas. Compensation and benefits plans should be revised, as it can be used as a very important tool to create motivation in employees.

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GLOSSARY

ATL (Above-the-line advertising)Term refers to main media expenditure, TV,print, radio, outdoor, cinema and itstraditional accounting treatment. Now usedfor all traditional media expenses incurredthrough an agency; mainly used to create,maintain brand awareness/interest.BTL (Below-the-line advertising)Expenditure on promotional activities whichare used to be managed within the company(now many specialized agencies take onthese task); promotional activities otherthan 'above the line' e.g. sales promotion,POP, direct response are examples of BTL.

Marketing CommunicationsThe formal and informal messages thatsellers transmit to buyers; that can besystematic (planned) as well as theunsystematic (unplanned) promotion by afirm of its products to its markets.

MarketingAct or process of buying or selling at amarket; development of a strategy for thesales of a certain product; promotion andselling services; distribution of goods

Human resourcesNoun. Manpower, human work force, humanlabor; field of business that deals andhandles personnel matters (such as hiring,training, firing, etc.)

Financial AccountingCollection of basic (raw) data, as inmanagement accounting, but treated in aprescribed and statute enforced formatwhich emphasizes the historic, custodial andstewardship aspects of the business

SalesTotal revenue amount collected for goods

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and services provided; see also gross sales,net sales, return on sales. Sales charge -same as commission

Public RelationsA deliberate, planned and sustained effort toestablish and maintain positiveunderstanding, good image, between acompany and its publics. Such publicsinclude customers, shareholders, employeesetc.

Project ManagementTracking and supervision of the tasks whichmust be done in order to complete a project(especially the production of a system)

ArtworkNoun. Work intended to have artistic valueFaciaNoun. Sign board (of a shop); dashboard,instrument panel of a car (British)

StreamerA long, narrow sign with a message in boldtype hung across open area, window, ordoorway.

VendorNoun. Salesman; supplier, equipmentsalesman (for example in the field ofcomputers, etc.); automatic machine for selling goods

LoyaltyThe extent to which customers repurchase aparticular product or brand.

LeasingNoun. Act of renting out property for aspecified period of time; possessing oroccupying under the terms of a lease.

References

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References

• http://www.Google.com/

• http://www.waridtel.com/

• http://www.brandchannel.com/

• http://www.pta.gov.pk

• http://marketingteacher.com/index.htm

• http://tutor2u.net/default.asp

• http://www.brandsaward.com/2008/index.html

• http://www.dictionary.com/

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