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|Starting Date||Wednesday, May 07, 2014|
|Closing Date||Thursday, May 08, 2014|
TOPIC: “Brand Building”
You are advised to read the whole article entitled “A 3G primer for brands By Khurram Mahboob” provided to you in download section at LMS and also available in the following link:
You are required to discuss the following question within the context of this article.
Do you think that launch of 3G & 4G offers any brand building opportunity to telecom companies operating in Pakistan? Support your discussion with logical arguments.
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Yes, 3G and 4G will build their brands more.
Leading operators can also use this opportunity to strengthen their market positions (perhaps by eliminating one or more competitors in the future) while new entrants and small players can take advantage of 4G to attack market leaders and quickly increase market shares.
Enhancement of brand visibility:
Provide a source of energy for a brand:
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A 3G primer for brands
3G will be a definitive game changer and brand managers need to start preparing now, writes Khurram Mahboob.
The 3G (and 4G) launch is perhaps one of the most talked-about events in some circles these
days. The launch has been the subject of much discussion over the last few years, mainly
because of the delay but the good news is, as conveyed in my last Aurora article on what to
expect in 2014 (Samsung rules but will Nokia boom?), that the 3G experience will be
commercially available to Pakistanis no later than early next quarter.
Who should be excited? Apart from the Pakistan Telecommunication Authority (PTA) and the
government (for obvious reasons), it should be the early adopters, the telecom companies and
marketers. However, in my opinion marketers are still unaware of the importance of 3G and
what it will bring to their otherwise conventional marketing mix. It is therefore a matter of
some urgency that marketers at least start thinking about how to include 3G marketing in their
3G will be a game changer for consumers who will get an altogether new experience because of
the high data speeds. The epicentre of the consumer’s world will be a single screen – i.e. the
smartphone. While on the go, users will have access to mobile internet speeds of between 140+
kbps and two Mbps, enabling them to download a song in less than 10 seconds, enjoy peer to
peer video calls, make complex financial transactions, enjoy a more holistic Facebook
experience, seamlessly shop online and experience apps with mind boggling benefits that we
can only imagine in this pre-3G era. Essentially, 3G will totally reshape the way in which we fulfil
our information, entertainment, shopping and even security needs.
Enter 3G mobile marketing
The emergence of 3G mobile marketing will be the key touchpoint to capture target audiences
when, where and how they want. However, as we all know the number of eyeballs is not the
only consideration and 3G, as a new and potent communication channel, has the potential to
deliver the following benefits: 2
• Rich, interactive, viral and valuable advertising content while establishing one-on-one
• The ability to leverage video as an advertising medium that can be used for recorded
and live video campaigns.
• Location-based offerings which don’t require downloading and/or special software.
• Minimal investment and rapid ROI. On-device metering is a pioneering technology that
will, for the first time, give advertisers, content developers and telecom players an
insight into how the mobile consumer is evolving thereby enabling them to make
informed marketing decisions.
The pillars of 3G mobile marketing
Three areas with great potential for mobile marketing opportunities will be the internet, video
• The internet, backed by high speed interactivity on HTML and flash-based applications
will increase the usage of navigation apps and social networking sites. In this context,
viral ads and SEO will become critical; brands may also want to look into sponsored URL
marketing, whereby they can pay telecom companies so that all consumers (or a specific
set of targeted consumers) can browse the brand’s website without paying data
• Video will take over passive text messaging both offline (video messaging) and online
(video conferencing). A great idea for brands would be to sponsor a video conferencing
service whereby a specific target market of consumers would watch short
advertisements of the sponsoring brand on their phone before the video call, in
exchange for a 50% discount.
• Lastly, entertainment, backed by TV streaming, interactive infomercials and games on a
smartphone, will present prime advertising opportunities.
Market sizing for 3G
Television continues to dominate Pakistan’s media landscape with 120 million viewers, a cable
penetration of about 55% and a 63% of total annual ad spend; the big dilemma for marketers is
the absence of a ‘challenger’ medium, as other conventional media fail to attract mass viewers.
Although there are 125 million mobile connections, they have so far never been considered a
serious promotional medium by advertisers due to the extremely limited promotional
marketing interface (mainly SMS) and lack of consumer profiling. With 3G in the equation, this
will change. Although all 125 million connections will not have a 3G-enabled smartphone, it is
estimated that within the next 24 to 30 months, there will be more than 20 million 3G users in
Pakistan – a critical mass of users who are also potential audiences for brands. This critical mass
will be steered by five trends which are converging in Pakistan – 3G, social networking, video,
VoIP and the availability of a wide selection of smartphones. Marketers will also need to keep
the following trends in mind:
• Young people (over 50% of the population) will be early adopters of this technology.
• In emerging markets (similar to Pakistan) the growing population of smartphone users
spends more time on entertainment and internet-based content than on voice calling
and text messages. In a recent study on emerging markets Nielsen Informate Mobile
Insights revealed that average smartphone users spend four hours a day using their
phones with 72% of their time spent on activities such as gaming, entertainment, apps
and internet related content. Only 28% of their time is used for voice calls and text
• 3G users use almost 50% more data than 2G users.
• An Android user installs an average of 19 apps in a month.
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