HAMDARD INSTITUTE OF MANAGEMENT SCIENCES HAMDARD UNIVERSITY

POSITIONING OF MOBILINK IN TELECOMMUNICATION INDUSTRY

Submitted to P e%# ed B&

: :

M ! S"#"id N#$eed

M# i#m Im #' (#)ee"# Abidi M#imoo'# M#)eed (#)ee"# M#*#"i S&ed A+i R#*# Te m A--i.'me't

P o)e,t

CUSTOMER ASCENDENCY

M# /eti'. M#'#.eme't

A,/'o0+ed.me't:
First of all we would like to thank Almighty Allah who gave us the opportunity and Potential to make this report. A heartfelt thanks to our friends, acquaintances and university fellows who agreed to help us so that we could bring the entire information about the topic in these pages. We also feel it important to acknowledge, recognition and thanks to our respected teacher M ! S"#"id N#$eed, whose teaching abilities and ideas about this course, able us to make this proposal in a manner able way.

M# /eti'. M#'#.eme't

T#b+e o1 Co'te'tCom%#'& P o1i+e Ne0 Mobi+i'/ Vi-io' St#teme't Mobi+i'/ V#+ueMobi+i'/2- M# /eti'. Ob)e,ti$e Ne0 3#** Loo/ Bu-i'e-- C#te.o & Di11e e'ti#tio' B #'d Im#.e P odu,t De-, i%tio' M# /et Se.me't#tio' T# .et M# /et M# /et Po-itio'i'. P i,i'. St #te.& S(OT A'#+&-iMobi+i'/ M# /et Pe 1o m#',e Mobi+i'/2- M# /eti'. St #te.ieCo',+u-io'

M# /eti'. M#'#.eme't

COMPANY PROFILE
B#,/. ou'd "#$%&%'( )*" started operations in the year 1++,- from then on it has shown enormous growth. At the time when it entered the market it was a small player in the cellular market of Pakistan it is now the market leader both in terms of growth as well as having the largest subscriber base in Pakistan. "#$%&%'( is a trendsetter as it can proudly boast of being the first cellular service provider in Pakistan to operate on a 1../ digital )*" technology. Mobi+i'/2- % e-e't %o-itio' "#$%&%'( )*" 0P"1&2, a subsidiary of #rascom 3elecom, is the market leader in providing state4of4the4art communications solutions to 5 million people in Pakistan. "#$%&%'( offer tariff plans that are e6clusively designed to cater to the communication needs of a diverse group of people, taking into account occasional users to businessmen. 3o achieve this ob7ective, "#$%&%'( offer both postpaid and the prepaid 08A992 solutions to its customers. %n addition to providing advanced voice communication services, "#$%&%'( also offer a number of value added services to its valued subscribers. (eeping in mind customers: convenience, it has also bundled mobile handsets, sold either independently or bundled in )et *et )o Pack.

M# /eti'. M#'#.eme't

Ne0 MOBILINK As we stand at the threshold of a new era of 1ommunication in Pakistan, "#$%&%'( )*" shares its renewed values and its new identity. #ur new look and feel is reflective of our new vision and thinking. MOBILINK GSM 4 Re-"#%i'. Commu'i,#tio' As "#$%&%'( continues to grow, it is no longer just a cellular company but the preferred choice of customers for their communication needs. #ur new logo the "#$%&%'( World encompasses people;s hopes, their wishes and their dreams. 3hrough our untiring efforts we commit to bringing these to reality through our state4of4the4art systems. "#$%&%'( brings people together.

<

M# /eti'. M#'#.eme't

VISION STATEMENT "To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Em loyee Ex ectations"!

M# /eti'. M#'#.eme't

Mobi+i'/ V#+ue-

Tot#+ Cu-tome S#ti-1#,tio'

1ustomers are at the heart of our success. 3hey have placed their trust and confidence in us. %n return, we strive to anticipate their needs and deliver service, quality and value beyond their e6pectations.

Bu-i'e-- E5,e++e',e
We strive for e6cellence in all that we do. We aspire to the highest standards and raise the bar for ourselves everyday. 3his commitment to delivering world4class quality translates into unmatched service and value for our customers and all stakeholders.

T u-t 6 I'te. it&

At "obilink, we take pride in practicing the highest ethical standards in an open and honest environment, and by honoring our commitments. We take personal responsibility for our actions, and treat everyone fairly, and with trust and respect.

Re-%e,t 1o Peo%+e
#ur relationships drive our business. We respect and esteem our employees and all stakeholders. We believe in teamwork, empowerment and honor.

Co %o #te So,i#+ Re-%o'-ibi+it&

As the market leader, we recogni>e and fulfill our responsibility towards our country and the environment we operate in. We contribute to worthy causes and are dedicated to the development and progress of the society.

M# /eti'. M#'#.eme't

Mobi+i'/2- m# /eti'. ob)e,ti$e

"#$%&%'()s rimary marketing objective is to maintain its osition as the market leader! To do so "#$%&%'()s aim is to consistently increase its market share and to remain the *to of the mind brand+ for all its customers!

M# /eti'. M#'#.eme't

NE( 3A77 LOOK

8a>> is an integral part of "obilink. %t connects the lives of more than +!/ of "obilink;s subscriber base and we want to clearly establish that 8a>> is a part of "obilink and it shares the company;s new vision. 3he "obilink world is a very important element of our new logo. As you will be able to see in the attached file, we have put in the "obilink world in the @AA of the 8a>> name. 8a>> is lively and has an attitude of its own. We strongly feel that this placement strikes the right balance between 8a>>;s individual brand character and having the "obilink umbrella over it. We have retained the 8a>> colours of Bed and Cellow. 3hese colours are strong, individualistic and yet very lively. 3his is what 8a>> is and we want to keep it that way.

M# /eti'. M#'#.eme't

Bu-i'e-- C#te.o &

Direct 1ompetitors E E E E Ffone Warid 3elenor 9ong

%ndirect 1ompetitors E E E E &and line 0P31&2 P1#s Gmail Fa6

1.

M# /eti'. M#'#.eme't

Di11e e'ti#tio'
)*" 3echnologyH "obilink is the one who brought )"3 technology in Pakistan and it has also change its frequency from +.."I to 15.."I. "obilink is the only brand in the telecommunication sector that operates on this frequency. AvailabilityH From its day of operation "obilink connections are easily available and "obilink believes that availability plays the ma7or role in getting the market share.

AffordabilityH "obilink e6tensions like 7a>> and indigo are very affordable and reliable for every common people Pakistan.

*ervicesH "obilink value added services and 8a>> power tools are very attractive for the customer and "obilink is the only one who started these services to their customers. "obilink services contribute very high percentage in differentiating from competitors.

1are about the customersH "obilinkH "obilink cares very much about its customersthey offer services and give benefits according to the need of its customers. "obilink also get feedback from the customers and evaluate its brand continuously.

Well established $rand PersonalityH "obilink is basically a part of #rscam 3elecom company- it is a well known name in the Gurope so it shows how strong "obilink history is. "obilink also offering its products like 8a>> and %ndigo according to the personality of the people.

11

M# /eti'. M#'#.eme't

BRAND IMAGE B #'d A--o,i#tio'

3A77 Prestige Livelihood Economy Jolliness Youthfulness Colorful

MOBILINK I'di.o Prestige Status Fame

M# /eti'. M#'#.eme't

B #'d Pe -o'#+it&
B #'d %e -o'#+it& %s the specific mi6 of human traits that may be attributed to a particular brandJ $oth the brands of "#$%&%'( have personalities, and generally consumers choose brands whose personalities match their own. I'di.o: $uyers of "#$%&%'( indigo have the following characteristics. E E E E E E E E E E "aleKFemale *ober *hining $usinessmanKG6ecutive #n top of the world "ature "iddle4aged Authoritative Powerful Gducated

3#**: $uyers of "#$%&%'( 7a>> have the following characteristicsH E E E E E E "aleKFemale Coung Gnthusiastic )raduateKFresh graduate G6cited Full of energy

1!

M# /eti'. M#'#.eme't

E E

1<4 < 1lose to friends

PRODUCT DESCRIPTION

MOBILINK INDIGO "#$%&%'( indigo is the new comple6ion of communication. &ife whispers. &ife &aughs. &ife talks. Iowever you connect with life:s moments, a "#$%&%'( %ndigo connection is by your side. With countless, value added ways to keep you connected. "#$%&%'( %ndigo is the new comple6ion of communication. After all, only family really knows your true colors. Su%%+eme't# & Co''e,tio' *upplementary connection from indigo. *ame connection, same bill, two numbers. A supplementary connection is all this and more. And because it will be billed on your e6isting monthly statement, there;s less paperwork and more control on top of having a great new number. C#++ #'d Co't o+ 1all L 1ontrol is aimed at customers who currently fall between prepaid and postpaid. 3hese are customers who want the prestige and benefits of postpaid with the control and convenience of prepaid. 3hey could include parents buying connections for their children, companies buying connections for their sales

1,

M# /eti'. M#'#.eme't

force with the control of prepaid cards and so on. 3he media campaign for the product will also emphasi>e these control and convenience features.

Se $i,e- o1 MOBILINK i'di.o MOBILE BANKINGH "4$anking ma6imi>es the ease and satisfaction of customers, by offering them banking services from their mobile handset. 3his service is provided to our customers who are banking with "1$ or *tandard 1hartered $ank.

Sto,/ 0#t,"H )et continuous updates on your stocks listed on the &*G 0&ahore *tock G6change2 or (*G 0(arachi *tock G6change2 anytime through "obilink;s *tock Watch! VOICE MAILH A great service that allow callers to leave a voice message when you are unable to take a call. ON CALL SERVICESH A bundle of great services to help you manage your calls, activate 1&%, 1all waitingKholding, 1all Forwarding, 1onference 1all.

1<

M# /eti'. M#'#.eme't

MOBILINK 3A77 8a>> is an ama>ing prepaid service that allows you freedom from monthly bills and gives you complete control over your cellular e6penditure. Cou decide in advance when and how much you want to spend. &oad a scratch card whenever you want to and start talking. 8a>> is simple, easy and loads of fun. 3A778Au Su'#o9 %nfectious, loveable and welcoming, it is impossible to resist the 7oyous celebration that personifies 8a>>. Providing a bouquet of benefits in the form of fun services, attractive call rates and network reliability, 8a>> liberates you from the shackles of silence so that you can better e6press yourself. %rrespective of age, color or creed, we all wear our badge of 8a>> with prideM

SONG DEDICATION SERVICE: 1?.. *imply call 1?.. from your "#$%&%'( phone, select the song you wish to dedicate and send it with your very own personal voice message, to any number, any phone and all at the choice of your time and day within Pakistan.

1=

M# /eti'. M#'#.eme't

MARKET SEGMENTATION
Dividing a market into different groups with distinct needs, characteristics, or behavior who might require separate products or marketing mi6es. "#$%&%'( also divides large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively wit products and services that match their unique needs. DEMOGRAPHIC SEGMENTATION "#$%&%'( segment it markets based on demographic variables that are it segments its market according to age and income of the customers. PSYCHOGRAPHIC SEGMENTATION "#$%&%'( also divides the market into groups based on social class, lifestyle and personality characteristics BENEFIT SEGMENTATION "#$%&%'( also segment its market on the basis of benefits sought by the customers, which is evident from different schemes they are coming up with. #n the basis of usage rate, heavy users have low charges and are also offer call and control.

1?

M# /eti'. M#'#.eme't

OCCASION SEGMENTATION "#$%&%'( also divides the market into groups based on occasions when buyer gets the idea to buy and actually make the purchase. "#$%&%'( has launched a new international roaming offer on the Ioly occasion of Ia77, which was effective from "onday, 1!th of December ..,. 3he concept behind that offer was to facilitate a broader segment of pilgrims going for Ia77. 3he new facility was available not only for "obilink %ndigo customers but also for 8a>> and 1all L 1ontrol customers. %t was yet another incentive for new customers to get connected to "#$%&%'(. DEMOGRAPHY 3he demographic environment is of ma7or interest to marketers of "#$%&%'( as it involves people and people makeup markets. "#$%&%'( study the human population in terms of age, location, gender etc and then make products and offer services accordingly. For e6ample its brand 7a>> is for young, energetic students and "#$%&%'( indigo is for mature, business e6ecutives. Pakistan is a largely poverty4stricken country and most of "obilink;s business is generated through urban areas as compared to rural ones, which are also a large share of the population. While the population in rural areas is somewhat scattered, in cities like &ahore and (arachi, it is quite condensed. 3hus "#$%&%'( does most of its business in cities rather than villages and small towns. When "#$%&%'( first launched its service in Pakistan, carrying a cell phone was a rarity, and the trend picked up over the years as a result of dropping cell phone prices. 3oday many people from the lower middle4class households can also be seen using mobile phones. *o basically the trend has gone up to the point where providing its service at cheaper rates is the core value.

15

M# /eti'. M#'#.eme't

TARGET MARKET
DIFFERENTIATED MARKETING "#$%&%'( uses differentiated marketing to target their market segments. 3he organi>ation basically targets those customers who go for nationwide coverage without any P31& strings attached. 3hey target those people who need international coverage as well. $asically, they target people who need a reliable cellular service to stay connected. "#$%&%'( has targeted its market based on two brand usersH 8a>> users "#$%&%'( %ndigo users

Mobi+i'/ 3#**:
8a>> basically targets the following marketH Age group of 154 < years )raduate or Fresh )raduate "ale and Female Fun &oving and Couthful Gducated Want an Affordable mobile

3hey cater their market by providing connectivity at affordable prices 7a>> connections are available at a large number of places with affordable charges.

1+

M# /eti'. M#'#.eme't

MOBILINK I'di.o: 3his connection targets customers who areH = years inwards G6ecutives Prestigious cellular service "ale female "ature $usiness man 1ooperate users Fpper income class Don;t care about e6penses 3hose people who stay far from there families for business purposes

"#$%&%'( serves its %ndigo customers by providing them with post4paid advantages. %t does so by allotting special numbers to their family member so that they can talk to them at lower rates. Also provides them with the facility of call and control, which allows them to convert their pre paid connection into a post paid one.

M# /eti'. M#'#.eme't

MARKET POSITIONING Po-itio'i'. -t#teme't

3he positioning statement of the brands isH "#$%&%'( offers its customers with nation wide connection to connect with the ins irational and exciting moments of life using a cellular connection in the most convenient and affordable manner!

Po-itio'i'. E$#+u#tio' C"# t

JAZZ
3arget "arket 154 < years )raduate or Fresh )raduate F*P 1onnectivity at affordable price $usiness 1ategory 3elecommunications

IN I!"
= years onwards G6ecutive Prestigious cellular service

3elecommunications

M# /eti'. M#'#.eme't

Di11e e't -t #te.ie- o1 Po-itio'i'. "#$%&%'( has come up with different marketing strategies to gain competitive advantage over other organi>ations. *ome of these strategies areH MOBILINK I'di.o Su%%+eme't# & ,o''e,tio'-: 3hey provide you with a connection for a very small amount of monthly charges. 3his is basically done by providing a connection through a reference of pre4e6isting "#$%&%'( %ndigo connections. Also, very low outgoing rates are charged on discounted numbers. C#++ #'d Co't o+: "#$%&%'( is now providing post4paid connections with prepaid fle6ibility through call and control. 3his package is for their heavy 8a>> users who want scratch card facility but with post paid charges. I'te '#tio'#+ o#mi'.: 3hrough this facility "#$%&%'( provides unmatched roaming services around the world in more than 1.. countries through its <. network partners, by using this facility you can stay connected when traveling abroad V#+ue #dded -e $i,e-: "#$%&%'( provides following Nalue added servicesH o Power tool o *"* o N "ail o ) "ail o Data services o Fa6 services

M# /eti'. M#'#.eme't

o 1onference calling o "obile banking Ne0 ,o+o - o1 1 ie'd-"i%: %t has come up with new colored messages for your friends according to their interests and hobbies this is targeted towards teenage customers 3#** %o0e too+-: 3hrough this you canH o Download favorite songs as your ring tones o Download your favorite operator logo o Iave a "#$%&%'( logo o *end picture messages o Iave your favorite picture as your logo o 1reate your own logo o *end greeting cards o *end blink *"* Co b #'di'.: %n order to gain competitive advantage "#$%&%'( has 1o branded withH o #rient "obiles o 'okia and "otorola o &) phones

M# /eti'. M#'#.eme't

PRICING STRATEGY
F#,to - e11e,ti'. t"e % i,i'. de,i-io' 3he basic factors that influence the pricing are %nternal G6ternal

I'te '#+ 1#,to M# /eti'. ob)e,ti$e3hey base their pricing on their marketing ob7ective which is to have the largest share in the market to gain that they have to come up with really low rates in order to beat the competitors. 3hey are currently working on it which is evident from the huge decrease in the prices in past two three months. M# /eti'. -t #te.& 3heir marketing strategy depends on giving customers what they want at a desirable price in order to beat their competitors. *o according to this strategy they have to be aware of the prices that their customers are willing to pay and is profitable for them. Co-tWhen setting the prices they also take into consideration the costs of the product. 3hey set their prices so that their costs are covered.

M# /eti'. M#'#.eme't

E5te '#+ 1#,to 3hese are the factors that affect the prices and are e6ternal to the organi>ation. Dem#'d 1o t"e % odu,t %f the demand for the product is very high then they provide the customers with additional benefits for their loyalty. 3his is done by lowering the rates or providing them with special rates on particular timings or on particular packages. %f the demand for a certain line or any part of it is low they provide with low initial pricing, which attracts new customers. Com%etito 1ompetitors play a very important role in pricing decision. Any low pricing offer by a competitor is followed by a low pricing offer by the organi>ation to meet its marketing goal.

P i,i'. #%% o#,"

3hey use both value based and competition based pricing approach. V#+ue b#-ed % i,i'. #%% o#,"

3hey price their product according to their users; demand, which is clearly evident from different rates of scratch card and %ndigo connection that they offer. %f they were not

<

M# /eti'. M#'#.eme't

worried about their customer needs they would have come up with only one type of offer which was either to gain competitive advantage or to cover the cost.

Com%etitio' b#-ed % i,i'.

3he prices also take into consideration the activities of competitors, as they have to hold their share as the market leaders. 3hey respond immediately to any price change made by the competitors. 3his can be seen from the response to Ffone;s free connection offer against which "#$%&%'( came up with a similar offer.

M# /eti'. M#'#.eme't

S(OT A'#+&-iSTRENGTHS

B #'d St e'.t"

#ne of the ma7or strengths of "#$%&%'( is its brand strength. "#$%&%'( is a popular brand in the Pakistani "obile "arket. 3#** %#,/#.e: "#$%&%'(;s sub brand 8a>> is especially Otop of the mind; brand. %3 %* G3GB"G&C AFF#BDA$&G With no daily charges and low outgoing rates. (ide Co$e #.e:

*trength of "#$%&%'( is its wide coverage. "#$%&%'(;s services are available at more than !<. cities within Pakistan and 1.. countries outside Pakistan. And the number is increasing continuously. 1ustomers can depend on "#$%&%'( when it comes to coverage in remote areas. 3his strength has made "#$%&%'( very popular in rural areas. After having faced the connectivity problem, "#$%&%'( has worked diligently to increase its cell sites. 1urrently the number of cell units is as high as .... %n fact, "#$%&%'(;s efforts to improve its connectivity have been appreciated internationally. #nly recently "#$%&%'( received an award for its achievement of establishing 1.. cell sites in one month. F #',"i-i'.:

M# /eti'. M#'#.eme't

"#$%&%'( has a strong franchising platform. %ts franchises are scattered all the cities where "#$%&%'( has arrived. 3he total number of franchise in (arachi only is up to ! and is more than guidance. .. nationwide. 3hese franchises provide customer with information and

(EAKNESSES Poo ,o''e,ti$it&

"#$%&%'( has faced some ma7or connectivity problem in the past for it had to pay a very high cost. 3he problem has decreased by a great deal but there is still some e6tent of connectivity problems faced by its customers.

Te,"'i,#+ % ob+emH

3hey are technically unable to cope with demand. At present its difficult to contact users of "#$%&%'( as usually the line is busy or the recording comes to try again later. 3his happens most at occasions like G%D and at times of heavy usage i.e at night or evening. OPPORTUNITIES Ru #+ A e#-:

3he rural population of Pakistan constitutes a ma7or portion of "#$%&%'(;s potential market. Bural areas have an acute need for a reliable communication network, which "#$%&%'( can satisfy. MMS #'d GPRS:

'ew mobile phone technology is also a ma7or opportunity for "#$%&%'(. 3op of the list is the "ultimedia "essaging *ervice and the )lobal Positioning *ervice. "#$%&%'( support for these services will vastly increase "#$%&%'(;s market share.

M# /eti'. M#'#.eme't

THREATS E5i-ti'. Com%etito -:

"#$%&%'( being a market leader does not face very serious threats from the e6isting companies. $ut however trivial the threats may be they cannot be ignored. Paktel being a government organi>ation has a large amount of resources at its disposal. Paktel has recently launched Paktel gsm, has the lowest rates and using heavy marketing and advertising. 3his makes Paktel threat to "#$%&%'(.

Ne0 e't #'t- i' t"e 1ie+d

3G&G'#B has 7ust its services in Pakistan which is very high financed and also an Guropean company. %t is threat for "obilink. 3G&G'#B is currently in all large countries like %ndia and china and therefore very e6perienced and A&.WABGD is a F.A.G based company, associated with bank A&4FA&AI which is doing well in Pakistan, therefore A&4WAB%D is a very wealthy company and both of them will enter Pakistani market in the quarter of ..<.

M# /eti'. M#'#.eme't

MOBILINK MARKET PERFORMANCE

E E E E E E E

3he brand of the company has the highest recall and is 3#P of 3IG "%'D brand %ncreased volumes and Nalue 3he demand has increased for the coverage in the rural areas of Pakistan Performance is measured in terms of increased sales and awareness People associate themselves with the $rand "obilink is the market leader with =</ market share 1overing more than 1.,... cities, towns, and villages across Pakistan.

!.

M# /eti'. M#'#.eme't

MOBILINK2- M# /eti'. St #te.ie"#$%&%'( follows various strategies to achieve its ob7ectives. *ome of which are as followsH E M#i't#i' Di-ti',t B #'d Pe -o'#+it& 3he 1ompany tries to maintain distinct brand personality. 3his is important as it encourages customers to affiliate to the brand and remain loyal. A powerful and attractive brand personality also draws new customers. E U'de -t#'d t"e Cu-tome NeedAfter getting the heavy response from the consumers the company;s performance has gone up and due to competition the company is still busy in research through they are trying to increase the market share. 3he company tries to reach out to customer and understand their needs. 3he customers are encouraged to give feedback to the organi>ation and ask for guidance. 3hey can call the "#$%&%'(;s help line or give feedback through the net. Also they are given guidance and support thorough the various "#$%&%'( franchises and Ielp 1enters. E Bei'. A0# e o1 Com%etito 2- Po-itio' 3he company also insures that it is informed of the competitor;s strategies. Gven though "#$%&%'( does not have organi>ed intelligence dedicated for this purpose, it has a strong informal @grapevineA through which it remains abreast with all the essential strategic decisions of competitors. *uch information helps

!1

M# /eti'. M#'#.eme't

"#$%&%'( to get competitive advantage as it allows it to take measured and timely actions.

CONCLUSION
"#$%&%'( did a lot of efforts to change the consumer perception. %n earlier period "obilink was not so much popular and people were also not aware of this cellular technology. %n areas of creating awareness "obilink has did well through its new logo and slogan- and consumers are fully attracted towards the value added services. After changing the logo "obilink becomes able to convince the consumer that you all are the parts of this "obilink world and this is only the company which connects you with the world. 3he 8a>> brand so much popular in young because of its &ogo color and its services while the %ndigo is designed for the G6ecutives who go frequently outside of the country because these people can easily contact with their families that;s why the call it %ndigo family. After doing so much efforts and hard work the management becomes successful in getting the corporate identity for the company. "#$%&%'( is certainly a great place to work at and it has a lot to offer in terms of marketing benefits. 3his is why there wasn;t much to offer in recommendations keeping in mind that it is almost the top4most revenue generating company in Pakistan today. 3hey have a highly qualified team of professionals working for them which keep track of their changing environment.

M# /eti'. M#'#.eme't