Вы находитесь на странице: 1из 17

Term Project: Principles of Marketing

Initial Draft
March 14, 2010

Submitted to
Mr. Naveed Ilyas

Submitted by

Abdul Basit 9520

Syed Hassan 9544

Imran Sheikh 9701

Muhammad Umer 10172


EXECUTIVE SUMMARY
<TO BE FURNISHED AFTER COMPLETING ALL SECTIONS OF REPORT>

2|Page
Table of Contents

BACKGROUND .................................................................................................................. 4

1. 1 ABOUT THE COMPANY .......................................................................................... 4

1.2 ABOUT THE PRODUCT / SERVICE ............................................................................ 5

INDUSTRIAL ANALYSIS ...................................................................................................... 8

2. 1 MARKET SIZE ...................................................................................................... 8

2. 2 MARKET SEGMENT ........................................................................................... 10

2. 3 MARKET DISTRIBUTION .................................................................................... 11

CONSUMER BEHAVIOR ................................................................................................... 12

3.1 INTRODUCTION................................................................................................ 12

3.2 INFORMATION RESEARCH ................................................................................ 14

3.3 EVALUATING ALTERNATIVES ............................................................................. 15

3.4 BUYER DECISION PROCESS ................................................................................ 15

3.6 POST PURCHASE BEHAVIOR .............................................................................. 16

STRATEGIC MARKETING.................................................................................................. 17

TACTICAL MARKETING .................................................................................................... 17

5.1 PRODUCT.......................................................................................................... 17

5.2 PRICE ................................................................................................................ 17

5.3 PLACE ............................................................................................................... 17

5.4 PROMOTIONS (IMC).......................................................................................... 17

CONCLUSION .................................................................................................................. 17

3|Page
BACKGROUND
1. 1 ABOUT THE COMPANY
Telenor Pakistan
In March 2005, Telenor launched it self in Pakistan, owned by Telenor ASA. Telenor operates
in Asia together with Thailand, Malaysia and Bangladesh. Till now 2 billion US dollars have
already been invested in Telenor and it is setting precedence for further foreign investments
in the telecom sector. Telenor calls itself the fastest growing mobile network in the country,
with coverage reaching deep into many of the remotest areas of Pakistan, spread across
Pakistan, creating 2,500 direct and 25,000-plus indirect employment opportunities and
having a network of 23 company-owned sales and service centers, more than 200
franchisees and some 100,000 retail outlets.

Telenor Group
The Telenor Group is an international provider of high quality tele-data and media
communication services with mobile operations in 13 markets across the Nordic region,
Central and Eastern Europe and in Asia. The Telenor Group is among the largest mobile
operators in the world with over 165 million mobile subscriptions and a workforce of
approximately 40,000.

Tameer Microfinance Bank Limited


Tameer Bank, a fast growing microfinance bank licensed by State Bank of Pakistan in August
2005, rated A- (single A minus) and A-2 (A two) by JCRVIS, has a current network of 31 on-
line branches and 35 on-line sales & service centers across Sindh and Punjab. It is a private
commercial Microfinance bank licensed by the State Bank of Pakistan under the
Microfinance Ordnance 2001.It has given new complexion to the microfinance sector by
induction of innovative technology driven financial services to the under-served population
through choice of bank tellers, ATM machines and Point of Sale (POS) terminals. Its product
set includes loans, deposits, overdrafts, insurance, payments and domestic remittances.
Since inception, Tameer has disbursed more than Rs 3.5 billion with an active portfolio of Rs.
1.4 billion and over 80,000 loan customers with delinquency trend of under 2% supported
with a deposit base of more than Rs 1 billion. The total customer base of Tameer has
crossed 170,000 with staff strength of 1,100. The Vision of TMFB is to emerge as a global
benchmark for innovative and commercially viable microfinance solutions to the unbanked
for their socio-economic empowerment. Mission is to set new standards of excellence in
value added microfinance and related services through innovative technology and a highly
skilled/professional staff for customer convenience and satisfaction.

4|Page
1.2 ABOUT THE PRODUCT / SERVICE
EasyPaisa has ISO/IEC 27001:2005 certification for Information Security Management
System (ISMS) for mobile banking services. EasyPaisa has targeted the unbanked segment of
Pakistan population providing them facilities such as,

1. Cash deposit
2. Cash withdrawal,
3. Utility Bill Payment
4. Money Transfer
5. Account balance
6. Mini-statement
7. PIN management
8. Favorites

For people having Tameer Bank’s account they can also avail the facility of

• Transfer In/Out

Telenor and Tameer Bank has introduced the concept of Mobile Account in Pakistan,
EASYPAISA MOBILE ACCOUNT (ACCOUNT IN HAND ) feature introduces bill payment,
money transfer and many other services can be accessed through Mobile phone where
there is coverage.

Initially supported by a network of 2,000 agents, it’s not surprising that EasyPaisa is seeing
early signs of success. Having been live for less than two months, almost 250,000 customers
have used the bill payment or money transfer services initially available and there are
positive signs that business will be strong.

On 25th February 2010, Mr. Ali Abbas Sikandar, Group Executive Director for technology and
operations at Tameer Microfinance Bank, shared some numbers about EasyPaisa:

• 500,000: the number of total transactions that EasyPaisa has processed in the last four
months

• 420,000: the number of bill payments since its launch

• 120,000: the number of money transfer transactions processed after its launch

5|Page
EasyPaisa is based on the idea of branchless micro financing, enabling services on two major
platforms

• OVER THE COUNTER

Currently there are above 5500 counters/Merchants and as planned there would be 20000
touch points by end of 2010.

• INDIVISUAL CUSTOMER (EVERY MOBILE WITH TELENOR)

22 million Telenor users can use their mobile for these individual services

EasyPaisa Initially started with Bill payment services for

1. Gas
2. Electricity
3. Telephone

Then money transfer was introduced which was from merchant to merchant (counter to
counter)

Recently Mobile Wallet was introduced for individual customer

1. Bill payment
2. Money transfer
3. Balance inquiry
4. Mini statement
5. Pin generation
6. Pin change

The over the counter services include

1. Cash deposit
2. Withdrawal

The product become so successful that it paid more bills in 15 days more than ever paid
through ATM and internet banking.

6|Page
TARGET MARKET

• INCASE OF BILL PAYMENT

Rural areas of Pakistan

• IN CASE OF MONEY TRANSFER

Urban to rural area of Pakistan

CRITICAL ANALYSIS
In its early battle EasyPaisa seems to have won and have progressed deeply into the mind of the
population of its target market through its publicity and marketing, getting huge attention through
out and attracting competition, but the edge it has right now is its Bill payment and Money
Transferring capabilities, but soon they would have to unleash their hold on the customer by

• Increasing their limits for daily / monthly transfer for Account holders and Merchants.
• Put flat fees instead of the Percentage they are charging right now.
• There are a lot of Alternate Delivery Channels (ADC) in form of ATMs, Tele banking and Internet
Banking but in comparison EasyPaisa Merchants, Tameer bank and Telenor Franchises are still
very few to provide the easy access to their services.
• Mobile Wallet services do reduces the effect of the above mentioned fact.
• There is still too much labor (energy cost) for an ordinary person to send and receive the money,
so they can think about providing add-ons (packaging) to increase their services by delivering
the money transferred to the home/offices of the receivers.

7|Page
INDUSTRIAL ANALYSIS
2. 1 MARKET SIZE
2010 (Jan-
2009 (Oct-Dec) 2009 (Oct- 2010 (Jan-Feb) Feb) Growth
Market Size (Amount) Dec) (Volume) (Amount) (Volume) %

Easy Paisa

Utility Bill Payment 683,000,000 200,000 1,035,000,000 300,000 49.75%

Money Transfer

(Sent and Received) 281,250,000 150,000 888,750,000 450,000 200%

Mobile Wallet
Accounts N/A N/A 3,125,000 25,000 -

Cash Deposits N/A N/A 6,375,000 8,500 -

Cash Withdrawal N/A N/A 560,000 8,000 -

Transfer IN N/A N/A Negligible Negligible -

Transfer Out N/A N/A Negligible Negligible -

Total 1,366,000,000 350,000 1,933,810,000 7,915,00 N/A

Other Alternate
Delivery Channels
(ATM/Internet
Banking/Tele
Banking) 2009 (Amount) 2009 (Volume) 2010(Amount) 2010 (Volume) Growth %

Cash Withdrawal

Cash Deposit

Funds Transfer

Interbank Funds
Transfer 840,000

Utility Bill Payment 304,119,456 107,256 275,000,000 100,000

Total 500,000,000,000 57,000,000 615,000,000,000 62,000,000

Total Market

8|Page
<Table to be furnished more upon receiving data from EasyPaisa>

There are basically three types of interface for financial transaction for a customer.

• Conventional Branch banking,

• Other alternate delivery channels such as ATMs, Internet Banking and Tele-banking

• Branchless banking

EasyPaisa falls into the category of branchless banking. When we look at the above figures it
is clearly seen that it has taken over the utility bill payments category over all other
alternate delivery channels. In fact the volume of one month’s bill payment transaction of
easy paisa is greater than what of other delivery channels in a whole fiscal year.

This shows the convenience and reduction in dissonance for the costumer. The ability to
pay bills anywhere and anytime without the hassle of standing in a long queue during
working hours has changed the way consumer worries about bill payment annoyance. But
when we compare money transfer of EasyPaisa to that of alternate delivery channels we see
that there is a huge potential for this market to grow.

EasyPaisa Transactions - Volume Based

9|Page
2. 2 MARKET SEGMENT
OPTIONS Numbers/Value in Rs. SOURCE
Total Number of ATMs in 4217 State Bank of Pakistan
Pakistan
Total Number of Real-Time 6587 State Bank of Pakistan
Online Branches (RTOB)
Total Number of POS terminals 50920 State Bank of Pakistan

Total Number of Debit Card 62 million (approx)


Transactions in Fiscal Year
2010
Total Number of Credit Card 7 million (approx.)
Transactions in Fiscal Year
2010
Total Number of Bills paid 8938 Bills paid ,valued at
through 1-Link ATMs/Internet Rs.25,343,288/-
banking in September 2009

Total Number of account 26 million.


holders in Pakistan is roughly
Total Number of ATM Cards is 1.7 million
9.3 million and Credit Cards
Total Number of financial Rs.500 billion (fiscal year 2009-
transaction via debit cards 2010)
amounts to roughly
The composition of volume 70% & 30% respectively, which State Bank of Pakistan
(percentage) between paper is now 65% & 35%?
based and e-payment
transactions

10 | P a g e
2. 3 MARKET DISTRIBUTION
Telenor Tameer Bank No of All Targeted Current users
Mobile Users Account Holders EasyPaisa Population of EasyPaisa
Outlets

Urban Rural Urban Rural Urban Rural Urban Rural Urban Rural

Sindh

Punjab

Baluchistan

N.W.F.P

FATA

<Table to be furnished more upon receiving data from EasyPaisa>

CRITICAL ANALYSIS
The basic problem identified was that EasyPaisa money transfer is a two-legged transaction.
The money sender first has to go to an EasyPaisa outlet to deposit money then the receiver
has to go to another easy paisa outlet to collect that money. This creates a hassle for the
costumer on both ends. This situation can be improved if easy paisa plans to deliver the
money to the receiver’s door step. This will create value for the comfort and increase the
post purchase buying behavior and eventually lead to more profit market.

The initial feedback from the critics is that the transaction limit for merchants/ Mobile
Wallet customer is very low. Though these limitations are imposed by State Bank of
Pakistan, but they have to find some alternate way to overcome this barrier for future
growth.

11 | P a g e
CONSUMER BEHAVIOR
3.1 INTRODUCTION
Our report covers different types of buying behavior which covers easiness in terms of all
sort of financial transaction made by different class of people in Pakistan. In achieving these
objectives we will be highlighting the need of EasyPaisa services to the Pakistani people. This
will fulfill the vision of Telenor Pakistan and Tameer Microfinance Bank towards bringing
innovative products to their loyal costumers.

EasyPaisa is not just limited to Telenor subscribers; it’s available for everyone. In fact people
without mobile phones can equally enjoy this service. So now everyone can use EasyPaisa
services from anywhere and anytime. The steps for using these services are discussed in the
later session.

Before analyzing the consumer behavior of the EasyPaisa we should build the basis for the
need to achieve such kind of behavior in Pakistan.

POPULATION DENSITY OF PAKISTAN

1981 1998 Rural Urban Increase Annual Growth


No. of Census in % Census in % Population Populat in Rate (%)
Province Districts million Share million Share % ion % million Previous Present
Punjab 34 47.292 56.13 73.621 55.63 68.7 31.3 26.329 2.74 2.64
Sindh 21 19.029 22.59 30.44 22.99 51.2 48.8 11.411 3.56 2.8
N.W.F.P 24 11.061 13.13 17.744 13.41 83.1 16.9 6.683 3.32 2.82
Baluchis
tan 26 4.332 5.14 6.566* 4.96 76.1 23.9 2.234 7.09 2.47
Islamab
ad 1 0.34 0.4 0.805 0.61 34.4 65.6 0.465 4.34 5.19
FATA 7 2.199 2.61 3.176 2.4 97.3 2.7 0.977 (-) 1.47 2.19
TOTAL 113 84.253 100 132.352* 100 67.5 32.5 48.099 3.06 2.69

12 | P a g e
GRAPHICAL REPRESENTATION OF PAKISTAN POPULATION

CONSUMERS NEEDS FOR MOBILE FINANACIAL SERVICES

Consumers are most likely to use mobile financial services for six categories:

• Purchase of perishables items


• Utility Bill payments
• Unmanned vending payments
• Purchases on internet
• Pre-paid top up
• Person-to-person payments (money transfer)

13 | P a g e
3.2 INFORMATION RESEARCH

Since the type of Services launched by EasyPaisa in Pakistan were first of its kind. Therefore
to create the desire for the customer through displaying various kinds of advertisements on
TV and Billboard, etc. In order to fulfill the needs of mobile banking services through
EasyPaisa, customer has following access points;

Items EasyPaisa Utility Bill Payment


Available at all 23 Telenor Offices SSC, 200+
Franchise, 30 Tameer Bank Branches & 20
Reach
Tameer Bank SSCs. This makes it a total of
over 5500 EasyPaisa outlets.
You can easily submit your utility bills at any of
Pay on the go our EasyPaisa outlets while you are on a
routine shopping trip.
Standing in long queues for paying utility bills
is now part of the history! Through this
service, you can easily bypass the hassle of
Easy & Convenient waiting in long queues, observing the tightly
scheduled timings of conventional bill
collection points and also the difficulties of
running between places for the bill payment.
Timings 24 hours a day, 7 Days a week
PTCL, SNGPL, SSGC, KESC, LESCO, HESCO,
GEPCO, IESCO. We have additional company
Partner Utility Companies
HESCO (All interior sindh) on board, with
MEPCO & FESCO coming on board soon
Partner Bank Tameer Bank
Approved by State bank of Pakistan, we have
Regulatory Approval formal branchless banking operations
approval from State Bank of Pakistan
Customer Receives Confirmation SMS on bill
payment. Utility bill is stamped with Official
Secure Transaction
EasyPaisa stamp approved by State Bank of
Pakistan
Helpline support 24/7 help line available for any query
Whole set of exciting products coming up very
New upcoming products soon which will change the lifes of Pakistani
people

14 | P a g e
3.3 EVALUATING ALTERNATIVES

The first targeted service launched by EasyPaisa was utility of bill payment. Bill will be paid
through their mobile phone having Telenor Services or visiting the nearby EasyPaisa outlet,
Telenor Franchise, or Tameer Microfinance Bank. Originally for bill payment customer has
following options

• Banks
• Post Office
• Respective utility centers
• Credit Card
• Bill payment through one Link ATM machine

Now, Telenor Pakistan in collaboration with Tameer Microfinance Bank to provide EasyPaisa
services

Following is the procedure for bill transfer. But later on they started providing money
transfer services as well. Therefore following is the simple procedure of using EasyPaisa
services for bill payment.

1. Bring your utility bill and the required amount of cash to any of our EasyPaisa
outlets.
2. Ask the retailer/shop keeper to pay your utility bill through EasyPaisa bill payment
service.
3. If you use any mobile service, give the retailer your mobile number to receive a
confirmation SMS.
4. On completion of the payment, collect the stamped bill, which carries the
transaction ID and Agent ID.
5. If you have mobile phone, don't forget to check that you have received a
confirmation message.
6. If you do not have a mobile phone, check the confirmation message on the mobile
phone of EasyPaisa agent.

3.4 BUYER DECISION PROCESS

After analyzing the consumer behavior and its needs we will critically evaluate his/her
decision process. Above buying behavior can be categorized in habitual buying process list
because people normally pay their bill every month. They use to pay their bill to their
nearest Bank. They don't give too much attention to which bank are they going for paying
their bills. Because the bank charges more or less are the same. Therefore for EasyPaisa it is
very difficult for them to change the consumer behavior towards using the mobile services
for their payment of bills. But some how EasyPaisa team managed to launch the process in a

15 | P a g e
simple and convenient manner. So, that consumer with little level of education and able to
handle mobile phone can easily pay their bills through their mobiles or nearby EasyPaisa
outlet, etc. Therefore on the basis of the above services the EasyPaisa is trying to change the
buying behavior from habitual to dissonance reducing buying behavior. So, that EasyPaisa
can capture the market on the basis of counter dissonance level.

3.6 POST PURCHASE BEHAVIOR

Post purchase behavior means the actions taken by the buyer after using the service or
product on the basis of his/her satisfaction level. If the product falls short of expectations,
the consumer is dissatisfied; if it meets its expectation, the consumer is satisfied and if it
exceeds, the consumer will be delighted.

Keeping in focus the post purchase behavior EasyPaisa introduced the services which will
satisfied the costumer, so that they should receive the services again and again. If they are
satisfied they should tell other people to use their services.

CRITICAL ANALYSIS
Over the past few years, Telenor has build up a really strong good will among the people of
Pakistan. However, customers still face “perceived risk” while paying bill through EasyPaisa
agents/outlets as they fear if they amount paid today can be verified tomorrow.

With other feasible services like Internet Banking, ATM for utility bill payment, EasyPaisa has
to face a big challenge so that users can pay bills through their service. Also, there are no
charges for bill payment through Internet banking/ATM where as customer has to bear
small fees while paying bills through EasyPaisa service.

16 | P a g e
STRATEGIC MARKETING
<Not covered in initial draft>

TACTICAL MARKETING
<Not covered in initial draft>

5.1 PRODUCT

5.2 PRICE

5.3 PLACE

5.4 PROMOTIONS (IMC)

CONCLUSION
<Not covered in initial draft>

17 | P a g e

Вам также может понравиться