MOBILE MARKETING IN PRACTISE:
TELENOR PAKISTAN CASE STUDY
Course Faculty: Mrs Yasmin Malik
Venue: CEE, IBA City Campus, Karachi
Course Date: May 8-9, 2012
Mobile Marketing Strategies
Mobile Marketing at Telenor:
A “MAD” Strategy…?
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This Case Study was developed in the area of mobile marketing in Pakistan and is the first
documented study carried out by a Pakistan based business school (IBA) on this particular
subject area
Yasmin Malik (Visiting Faculty at the IBA) prepared this case in collaboration with Telenor
Pakistan on the Operator’s mobile marketing strategy as applicable to the Pakistan market
Telenor Pakistan is the country’s first Mobile Network Operator to implement a comprehensive
mobile marketing strategy based on consumer profiling.
By positioning itself as a “Media Company” in the Mobile Marketing Value Chain, the
Operator aims to both enable and drive the mobile marketing eco-system in Pakistan
The Case examines the practical implementation of Telenor’s MAD (Mobile Advertising)
strategy as first carried out through a Pilot Project executed during Apr-May 2010
Copyright © 2012, Emerald Insights UK (www.emeraldinsight.com)
The Need for a MAD Strategy
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Towards the end of 2010, Amer Ishtiaq, Manager Channels and 3rd Party Services at
Telenor Pakistan had achieved an element of success in what was till that time viewed in the
local telecommunications industry as being rather contentious, if not wholly unattainable:
mobile marketing
Concerned that the highly competitive nature of the Pakistan telecommunications market would
relegate Telenor to a mere “bit-pipe” Operator, Amer Ishtiaq and his newly set up mobile
marketing team put forth a strategy in early 2010 in order to both develop and strengthen a
mobile marketing eco-system in Pakistan
Although short-term attempts at mobile marketing had been made by Mobile Network
Operators (MNOs) and brands alike over the years especially via SMS based marketing,
Amer Ishtiaq and his team were very aware of the fact that there existed a great deal of
misconception about the true nature of mobile marketing in the Pakistan environment
At the time, one of the major challenges for Ishtiaq’s team as described in his own words was
that “…given the lack of technical know how among brand teams in general, the main challenge
will be to explain the value proposition of the mobile medium…”
He surmised that in the current price-driven mobile telephony market, the combination of
increasing price and service competition and subscriber expectations for bundled messaging
plans was driving a decline in revenue per SMS in the local market. This made it imperative
for the Operator to both implement and enable mobile marketing based initiatives through its
own technology channels – and therefore, capitalize on it as a viable alternate revenue
stream.
The Need for a “Permission-based” MAD
Strategy
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The team had to keep in mind one other very significant challenge: to ensure that all Telenor
supported or enabled mobile marketing initiatives complied strictly with the fundamental rule
of mobile marketing i.e. “permission based marketing”
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Reference: Barnes, S J and Scornavacca, E (2004), “Mobile marketing: the role of permission and
acceptance”, International Journal of Mobile Communications, Vol 2 No 2, pp 128-39).
Ishtiaq hence instilled in his team from day one that:
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“Customer opt-in is a pre-requisite for all push based campaigns (SMS, MMS, RBT)….. this is the
key difference between Mobile Advertising and Spam.”
Telenor as a “Media Company”
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While Telenor could in no way be excluded from the price war tactics to gain
market share employed by all five MNOs, it had successfully set an industry
benchmark for Operator driven mobile banking in particular thereby establishing
practical credibility to alternate revenue streams besides the basic service of voice
access
However, in order to address its still sharply declining ARPU and to compete in the
changing face of multi-media and digital marketing, it was important for the
company to focus its efforts on mobile marketing campaigns aimed at both brands
and subscribers
The MAD team wanted to ensure that Telenor should be seen as a “Media Company,
i.e. as a Publisher, Property Provider and Carrier” so that it could position itself as an
enabler for mobile marketing in Pakistan
MOBILE
ADVERTISING
TELCO AS A MEDIA COMPANY
Publisher
1. Person to Person
2. Alerts
3. Bulk Messages
4. Info Services
a. News
b. Pakwan Service
c. Islamic Portal
d. Music Portal
e. Sports Portal
f. Social Services
5. 3rd Party Services
Property Provider
Carrier
1. Customer base access
2. Leads
3. Profiling capability
4. Tracking Info
SMS
Handset
MMS
Applications
Mobile Advertising
Properties
USSD
Call
Mobile
Internet
SMS – Short Message Service
MMS – Multimedia Message Service
IVR – Interactive Voice Response
USSD – Unstructured Service Supplementary Data
IVR
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The MAD Team
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Telenor’s mobile advertising strategy coined “MAD” (MAD = mobile
advertising) was put into practice via the MAD Pilot Project executed over
the period between 1 April 2010 to 21 May 2010
MAD, which was conceived by Telenor Pakistan in January 2010, was
formed from a cross functional team involving the following departments:
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Value Added Services (VAS): Project Owner. Responsible for MAD
strategy, business planning and revenue generation
Products & Services: Project Management. Responsible for product
development and process management
Business Intelligence: Customer Base Management. Responsible for
processes including opt-in process and customer profiling
Technology Division: Multiple departments involved for technology
related action points
Marketing: Agency engagement and market insights gathering
MAD Value Proposition
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Ishtiaq did not lose sight of the fact that the major challenge for the MAD project was to
convince local and international brands operating in Pakistan of the “value proposition” of
taking part in the Pilot Project
Despite having the second largest subscriber base in the country i.e. 25 million users, Ishtiaq
cautioned his team that:
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“…this is the maxima in terms of reach, but the actual inventory of mobile advertising will be
driven by the total number of subscribers who have opted in for push campaigns and the total
‘walk-in’ to pull-base properties on a monthly or yearly basis…”
The issue for the MAD team was hence not so much on the mechanics of increasing Telenor’s
subscriber base as it was to utilize one of its core assets i.e. that very subscriber base
With access to subscriber base details, any MNO is in a very good position to facilitate
subscriber profiling, which, in turn, can lead to well-targeted and successful marketing
campaigns
The question remained, however, how the MAD team would be able to “sell” this core asset to
brands as a comprehensive and value-driven tool for mobile marketing…
MAD Value Proposition
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Attract brands and agencies on the strength of the Telenor brand and its market position
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Offer “Properties” for execution
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Enable “Campaign Design” by educating and working with the brands and agencies
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Offer “Profiling” Capabilities but be clear on the limitations of this:
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While propositioning brands and advertisers, the MAD Team emphasized Telenor’s ability
to offer “a new level of customer profiling achievable using Telenor’s extensive Customer
Relation Database” comprising geographic, demographic, psychographic and behavioral
data
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Ever the realist, Ishtiaq was candid in what Telenor could not do: “We cannot profile on
attributes such as ‘aspirational values’ or give absolutely accurate information on whether
males or females use a certain cellular connection.”
Help brands/agencies select properties, set incentives, prepare, execute and analyze the
results
MOBILE ADVERTISING AS PART OF VALUE PROPOSITION
Bulks
Polls
Tail Message
Alerts
Coupons
Triggered Push
Application
to Person
Person
to Person
SMS
Applications
Games
Coupons
Handset
Application
Mobile
Advertising
Properties
Balance Enquiry
USSD
*345#
Landing Page
Interstitials
MMS
Mobile
Internet
Bulks
RBT
Call
Call Waiting
Pakwan
IVR
Music Box
Sports Portal
Social Service
RBT – Ring back tone
Interstitials - banner ads placed “in between” web pages e.g. placement
between main page and most popular page to maximize viewership of the ad
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PROPERTIES
MOBILE
ADVERTISING
SMS
MMS
IVR
Calls
Applications
USSD
Mobile
Internet
Use Cases:
- Promotional Bulks
- Coupons
L’Oreal:
Campaign Type: Coupon
Objective: Promote a new men's hair care product
Target Base: 45,000 Men
Age: 18-35 smartphone users
Campaign Type: Bulk
Objective: Promote "Combleur Collagène Lèvres," a collagen
and hydrollic acid lip treatment
Target Base: 105,000 French Women
Age: 35-49
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PROPERTIES
MOBILE
ADVERTISING
SMS
MMS
IVR
Calls
Applications
USSD
Mobile
Internet
Telenor Music Box
IVR - Use Cases:
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Background Music
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Ad Prompt
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Privileged Access
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Polls for Discount
Telenor Social service
Telenor Pakwan Service
Telenor Islamic service
Telenor Akhbaar service
Telenor Friends
Telenor Sports portal
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PROPERTIES
MOBILE
ADVERTISING
SMS
MMS
IVR
Calls
Applications
USSD
Mobile
Internet
Idle Screen Client
Actions
Click to Call – Call to predefined number
Click to SMS – Send predefined SMS to number
Click to Download Click to Internet – Link to internet page
Sub Banner
Main Banner
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PROPERTIES
MOBILE
ADVERTISING
SMS
MMS
IVR
Calls
Applications
USSD
Mobile
Internet
Balance Enquiry
*444#
Advertisement
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PROPERTIES
MOBILE
ADVERTISING
SMS
MMS
IVR
Calls
Applications
USSD
Mobile
Internet
Display Ads
Use Cases
- Display Ads on Landing Pages
- Interstitials
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CAMPAIGN DESIGN STEPS
MOBILE
ADVERTISING
Campaign Design
Draft
Mechanics
Set Campaign
Goal
Brand Awareness?
Sales enhancement?
Feedback Gathering?
Select Property
Message
Process Flow
Action
Prepare
Execute
Reach for target
profile
Brand Synergies
Set incentive
Scheme
Creative Development
Value Chain Alignment
Duration
Lucky Draws
Incentive Payout
Prize
Winning criteria
MMS
Applicatio
n
USSD
Incentives
SMS
Mobile
Advertising
Properties
Mobile
Internet
Call
Telenor
Specific
Advertiser
Specific
Free SMSs
Discounted
Content
IVR
Free
Minutes
3rd Party
Specific
Analyze
# Impressions
Click Through Rate
Leads
MOBILE
ADVERTISING
WHAT WE CAN DO FOR YOU
GEOGRAPHIC
- Region
- Strata
BEHAVIORAL
- Benefits sought
- Usage rate
- Brand loyalty
Target
consumer
PSYCHOGRAPHIC
- Activities
- Interests
DEMOGRAPHIC
- Age
- Gender
- SEC/Income grp
A new level of
customer profiling
achievable using
Telenor’s extensive
Customer Relation
Database
MOBILE
ADVERTISING
WHAT WE CAN’T DO FOR YOU
Aspirational values
for example females, who want to
be better mothers
Accurate user
information
Who actually is using the mobile
phone – male or female
TARGET PROFILE (BROADBAND SERVICE PROVIDER)
MOBILE
ADVERTISING
Urban youth 15-28 yrs
SEC A+, A, B
(buying power)
ARPU segmentation (PKR 250+)
Card reload > PKR 250
Geographic segmentation
(100% users of KHI)
Initial target market:
Karachi
PSYCHOGRAPHICS
- Young, energetic
- Mobile
- Tech savvy
Legend:
Requirements
Customer profiling
30 day active prepaid base
Djuice-centric (70% djuice, 30% TS)
BEHAVIORAL
- Avid GPRS user
MOBILE
ADVERTISING
TARGET PROFILE (CARBONATED DRINK)
Teens & Young adults
Mothers
Urban/semi urban teens, young adults 12-29 yrs
30 day active prepaid base
Djuice-centric (70% djuice, 30% TS)
SEC A-C
ARPU segmentation (PKR 150+)
30 day active prepaid base
SEC A-C
ARPU segmentation (PKR 150+)
Urban/semi-urban requirement
Geographic segmentation
(60% KLI, 40% random from urban &
semi-urban cities)
PSYCHOGRAPHICS
- Young, energetic
- Social / Mobile
- Tech savvy
Legend:
Requirements
Customer profiling
Mothers specifically
Subscribers of Pakwaan service
MOBILE
ADVERTISING
TARGET PROFILE (APPAREL)
All 30 day active prepaid base
SECs A, A+, B, B+
HH income from 25-300k+
ARPU segmentation (PKR 150+)
Check on HH income
Top 10 metro cities
(in accordance to product
sales)
Geographic segmentation
Top 10 metro cities
Students
 College students
 A- levels & business schools
 University students
 Job beginners, mid level
managers/ top managers
 Business men
Legend:
Requirements
Customer profiling
Suggestive refinements
 70:30% Djuice/TS base
 GPRS/MMS ARPU > 6
 Smart tunes user
 Facebook mobile/SMS
 RBT user ARPU > 6
 SMS/MMS bundle
user
Early adopters (reaction time
to new offer < 1 week)
Employed
 80:20% TS/Djuice base
 GPRS/MMS ARPU > 10
 Overall ARPU > 250
 Smart tunes user
 Facebook mobile/SMS
 RBT user ARPU > 10
 SMS/MMS bundle user
Early adopters (reaction time
to new offer < 1 week)
PSYCHOGRAPHICS
- Fun loving lifestyle
- Tech savvy
- Love music
BEHAVIORAL
- Reactive to promos & offers
- Users of Facebook
MOBILE
ADVERTISING
21-35 yr old
individuals
SEC A & B
(Buying power)
Urban cities
(top 10 cities based on
sales)
Further tap services
inclined to healthconscious individuals
Legend:
Requirements
Customer profiling
Suggestive refinements
TARGET PROFILE (JUICES)
30 day active prepaid base
Djuice-centric (50% djuice, 50% TS)
ARPU segmentation (PKR 250+)
Card reload > PKR 250
Geographic segmentation
Top 10 urban cities
MOBILE
ADVERTISING
22-40 yr old females
SEC B & C
(Buying power)
TARGET PROFILE (SOAP)
30 day active prepaid base
10% Djuice users, 90% TS
ARPU segmentation (PKR 250+)
Card reload > PKR 250
Further stratified
Target: small urban towns
Mothers who are custodians of their
family’s health and well being; she
takes pride in her role
 connected to family
 concerned about health
 confident, energetic individual
Legend:
Requirements
Customer profiling
Suggestive refinements
Geographic segmentation
Pin-point towns to target
Target subscribers
of strata 2 - 4
Services more
attuned to use by
women
MAD Results: Campaign Participation
Source: Telenor Pakistan
MAD Results: Property CTR
Source: Telenor Pakistan
MAD Post-Pilot Survey Results
Source: Telenor Pakistan
Where Does Telenor Fit In?
Operator Dominance in the Value Chain
Integrated
Competitor:
Compete on access,
service + content
e.g. Orange On
and Vodafone 360
Enabler/Smart-pipe:
access +
wholesale services
to 3rd party mobile
multimedia service sellers
Bit-pipe approach:
provide access only
on their “home turf”.
It represents dominant
share of operator revenues
Dominance at either end can present obstacles in the successful
implementation of e.g. mobile marketing initiatives
Source: ADL
The Risk of Disintermediation
and Commoditisation
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Why do many large Operators want to build a position beyond Access, into services, rather
than focusing on their historical core business (which can generate upto 90% of their revenues)?
The main rational reason is that a full bit-pipe approach carries long-term risks for operators,
in particular the risks of disintermediation and commoditisation
Many Operators fear becoming mere bit-pipe providers while new players (handset makers,
internet giants, etc.) start owning the relationship with customers
In such a scenario, Operators are likely to lose part of their grip on customers leading to more
difficulties in charging them beyond a flat fee for access, as well as more difficulties to control
customers’ loyalty, ultimately leading to higher churn and more price competition on access –
hence lower profitability
This threat, which has been identified for several years, has finally started to materialize in a
meaningful manner, with the large success of Apple’s App Store, the progress of internet giants
such as Google with Android, and the affirmed objective of an increasing number of handset
makers to rollout their own App Stores – along the lines of Nokia’s Ovi
Conclusion: best to steer towards a more “data-driven” strategy to support the growth in
mobile data traffic and incorporate data-driven VAS such as mobile marketing