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Zong Pakistan Marketing Plan
Zong Pakistan Marketing Plan
ZONG BACKGROUND:
Zong is China Mobile's brand in Pakistan. China Mobile Pakistan (CMPak) is a 100%
subsidiary of China Mobile. China Mobile's first overseas operation came about when it
acquired a license from Millicom to operate a GSM network in Pakistan.
Paktel was the first ever company granted license to carry out cellular phone services in
Pakistan. However after the launch and rapid success of its competition in 1998, it lost
market share. In 2003, Millicom Corporation bought Paktel. In January 2007 Millicom
sold Paktel to China Mobile.
Paktel was re-launched in April 2008 with the brand name Zong. Zong is the first
International brand of China Mobile. It is meant to empower and liberate the people of
Pakistan in every nook and corner of the country. CMPak's edge comes from the
experience and expertise of running the world's largest telecom service and the
commitment they make to setting quality and customer relations standard
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China Mobile's first overseas subsidiary, China Mobile Pakistan has the license to offer
and operate voice, data and all value added services in the entire country. One of the
fastest growing cellular markets in the world, Pakistan is a key region that is likely to
offer expansion opportunities as well the chance to make a difference in the lives of a
growing clientele that is demanding and understands and appreciates better quality and
service standards.
China Mobile has been playing a leading role in the development of the mobile
communications industry in China and holds an important position in the international
arena as well. After over ten years of efforts, China Mobile has established a
comprehensive network with large coverage, high quality, rich variety of businesses and
first-class customer services. It ranks the first in the world in terms of the network scale
and the customer base. The total number of customers had exceeded 240 million.
China Mobile has provided GSM roaming services with over 271 operators in 206
countries and regions and GPRS roaming services with 93 operators in 101 countries and
regions in the world. Its mobile short messages can be sent to 214 operators in 106
countries and regions and multimedia messages to 21 operators in 6 countries and
regions.
China Mobile has successfully attracted investment from the international capital market
with its sound performance and great development potential. Being included in the
Fortune Top 500 for 5 consecutive yeas, China Mobile's latest ranking is No.224.It also
ranks the 4th and 2nd in the Top 500 Chinese Enterprises in terms of its overall strength
and service provision respectively by the China Enterprise Confederation and China
Enterprise Directors Association in 2005.The listed company of China Mobile has been
the only Chinese company among the Forbes Top 400 World's Best Big Companies for 3
consecutive years.
China Mobile is not only a profitable company with robust financial performance and
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stable cash flow, but also the one with growing potentials and prospects. Looking
forward, China Mobile defines its strategic goal of "becoming a worldwide leader in the
telecommunications world and achieving leapfrog evolution from excellence to
preeminence". To this end, China Mobile will adhere to its core value proposition of
"Responsibility Makes Perfection" and spare no effort to improve its competitiveness by
implementing the concept of scientific development. with its well-built operation system,
outstanding organization structure and fully-trained personnel, China Mobile aims at
building a framework of "One CM" featuring mobile and information expertise and best
service quality.
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country. It aims to become a part of their hearts, their minds and bring about a change in
their
lives
that
every
one
desired
but
few
thought
would
be
possible.
The core essence of ZONG is to allow people to communicate at will. Without worrying
about tariffs, network coverage, capacity issues or congestion. ZONG will be supported
by ground breaking communications, trend setting customer service and an unmatched
product offering which will redefine rules of the game and establish ZONG as a serious
contender for the number one spot.
ZONG offers its customers with entertaining & innovative value added services and will
empower them by giving a wide variety of products, services & content to choose from.
MISSION STATEMENT:
To be the leading mobile operator of Pakistan by continuously innovating
and offering exceptional quality services; to be a good corporate citizen
and envoy of friendship between China and Pakistan.
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ZONG VISION:
Zongs vision is to make communication exciting and become the leading
mobile operator in Pakistan.
Vision components:
Conduct with integrity and live company principles.
Deliver continuous innovation and exceptional quality services
Foster an internal environment of innovation, collaboration and trust.
In doing so, CMPak aims to become customers partner of choice, industrys employer of
choice, and shareholders investment of choice.
ZONG VALUES:
Core Value:
Responsibility makes Perfection
Five Key Values:
Trust Worthiness
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Respect
Responsibility
Communicate Openly
Team Work
Zong environment:
CMPak is a dynamic organization with an equally empowering culture that allows people
to make the most of their skills, personality and career. As a company it delivers solutions
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that drive business value, create social value and improve the lives of every customer
(internal & external).
CMPak is a special place to work. Employees at CMPak gain help in developing their
capabilities and are recognized and competitively rewarded for their performance.
All employees at CMPak have a right to offer input and be involved in helping their team
grow. Creating a work environment in which employees can improve their minds,
continuously learn, gain professional growth and feel inspired by similarly motivated
individuals is fundamental at CMPak. In turn, we expect that employees share CMPak's
vision for company, team and individual growth and that employees will strive to make a
difference every day. This exemplifies CMPak's commitment to people.
BUSINESS PHILOSOPHY:
Business Philosophy is based on:
Solid commitment to growth.
Consumer convenience.
No compromise on quality.
Connectivity with reliability.
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BRAND IDENTITY:
ZonG is similar to the Zhong of Zhongguo (China) in pronunciation, Z descends
from the initials of (Zheng De Hou Sheng means correcting morality and
nourishing people) and (Zhen Yu Zhi Shan means always pursuing
perfection) in the values of the master brand China Mobile. At the same time ZonG
inherits the brand color of China Mobile: Blue, it symbolizes ZonG has adopted the
essences of the master brand.
The hieroglyph O illustrates that when we part our lips into the sharp of O, we can
scatter our voice into every corner of the world. O represents the gesture or the
movement of lips when people are saying OK meaning that this brand is accepted and
approved by customers as well. The color of salmon pink implies the accessible and
energetic international image of China Mobile.
The lowercase n shows the new brand is in close proximity with customers. The n is
the initial of the Chinese greeting / (Nin Hao/Ni Hao, that means hello)
The n is more representative of need, Zong is conscious of peoples needs and
regard satisfying them as responsibility
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Product Markets:
Product types, varieties, and brands:
Zong offer the following type of packages:
Prepaid Packages: ZONG 45, Break Time Offer [Friday Noon to 4 pm], Free
Package, ZONG 65, 12 Aanay Package, 50 Paisa/Call (8 Aanay), ZONG Super Free
Number, Aik Second Package, Late Night Offer.
Postpaid packages: SMS Bundle, Gprs packages, MNP.
Zong is versatile in a sense that is targeting almost each and each and every class of the
customers.
Zong mobile: Zong is the first company who introduced mobile with the brand name of
ZONG. It is available at very cheap price. Anyone can get it paying Rs. 1900 with Rs
1900 balance. Large number of people appreciates and gets the mobile immediately.
Zong USB:
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Marketing Programs
As the customers are spread all over the country, the broadcast medium is used to
communicate the value of the product. Local medium like sign boards, billboards, posters
and wall choking is used to communicate the value. Local area franchise work in
different areas and have the people who can communicate in local language.
Zong believes that decisions have a long lasting impact and implications. Decisions
directly impact mission of the organization. The decision moves the Organization into a
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SEGMENTTATION
HUMAN RESOURCES DEPARTMENT
Mission:
To facilitate Organizational growth through innovative & effective HR and people
practices.
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Functions:
Organizational Development
Recruitment
Compensation and Benefits
Operations
ENGINEERING DEPARTMENT
Mission
To operate and maintain the GSM network, in minimum cost, maximum availability and
up to the defined quality levels. Building quality network nationwide insight with
existing & future capacity prospectus nationwide with minimum cost and accomplished
in the targeted time.
Functions:
O&M
Rollout
NP&S
FINANCE DEPARTMENT
ZONG has strong financial position since its inception. China has been invested $1500
million in Pakistan for Zong and wants to invest more. The improvement in net earnings
resulting from strong internal sales growth from both postpaid, prepaid segments.
Functions:
Payable
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Treasury
Financial Accounting
Taxation
Fixed Assets
Project Accounting
Sun System (Accounting Software) Administration
ADMINISTRATION DEPARTMENT
Mission
To anticipate the needs of all departments and their employees, to address their demands
for creating better safe and secure friendly working environment, to accept challenges,
achieving goals thus portraying an outstanding image of the company and ultimately to
be the No. 1 Admin. operation within CMCC by any measure.
LEGAL DEPARTMENT
Mission
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To pre-empt, identify and assess potential legal matters, to ensure smooth sailing of the
company, thus provide legal service to safeguard the interest(s) of the organization, and
welfare of its stakeholders.
Functions
IT Projects & Planning
IT Infrastructure
IT Systems & Database Management
IT Operations
MARKETING DEPARTMENT
Mission
ZONG Marketing Department will become the best Marketing Department of the
industry in terms of adding value to their brand name, improving the image of the
organization, increase in sales, with quality of people and team spirit to lead the
organizations towards the achievement of short term and long term goals.
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Mission
To maximize the number of revenue-generating subscribers by efficiently planning &
executing the policies & operations related to product visibility & availability.
DISTRIBUTION
Zong purchases equipment from four companies ZTE, Ericson, Alcetle, and Hawaii.
These are the venders and operator of Zong. Zong distributors are franchises, customer
care service centers and different outlets. Zong has 22 CCSC and 100000 different outlets
in Pakistan.
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Internal analysis:
Strengths
Lowest rates Nation Wide
Zong provide lowest rates as compare to other telecom industry its a great thing
which is only provided by zong.
Network portability
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Over 500,000 people have been switched to Zong from other networks.
Zong mobile
Zong has come up with another interesting promotion. you get a phone, almost free
but with a years payment in advance.
Weaknesses
Bad image
Bad image of associate with Paktel. And still now having old staff of Paktel.
Brand standing
Zong have Week brand standing as compared to other telecom companies because
they are new in the market.
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Bad MIS
Zong does not have the proper lists of its customers. It has the list but this list is not
authentic which is increasing the unauthorized use of its sim specially pre pay. Zong
have to take serious steps to properly list its customers to ensure that there is no
misuse.
External analysis:
Opportunities
Expand Globally
ZONG can expand the globally and can develop it strategy in other countries.
Acquire / merger
As warid is going in loss and in the condition of liquidation its big opportunity for
Zong to acquire warid telecom.
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Zong can cover the border of China, with the Karakoram highway (old Silk Route)
and can play a vital role in freight transportation.
Threats:
Threat of new entrance.
Bargaining power of buyers.
Bargaining power of suppliers.
Threat of substitute product
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government
of Pakistan
is
showing
liberalism
in
case
of
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PEST ANALYSIS:
In order to survive and remain profitable in
todays competitive marketplace, Zong need to
be able to react and adapt to changes in the
external environment and ideally be proactive
in
impacting
these
forces.
External
POLITICAL FACTORS
Political Instability:
Pakistan is facing political instability causing danger for the telecom industry. But the
political factor does not effect on Zong so high because Zong related from china and
relationship of china and Pakistan is very strong.
Deregulation:
The telecom sector of Pakistan has successfully liberalized in an efficient, transparent and
fastest deregulation of telecom in the region. The Government of Pakistan gave the status
of Industry to Pakistan Telecommunication Sector.
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ECONOMIC FACTORS:
Gross Domestic Product:
Telecom sector of Pakistan has a share of almost 2 percent in National GDP.
Outflow of Capital:
The ongoing economic turmoil along with the worsening of security conditions in
Pakistan has caused an increased outflow of capital from the country.
TECHNOLOGICAL FACTORS:
Technological Development:
Companies are investing in their infrastructure to not only expand but also to upgrade
their existing structure. As the competition is strong Zong is focusing on its value added
services.
Technological Advancement:
Currently all companies are providing Multi-media Messaging Services (MMS), General
Packet Radio Service (GPRS), Virtual Private Network (VPN), Pocket Stocks,
Conference Calling, Wallpapers Animated pictures Polyphonic ring tones (WAP), and
Voice Mail at low price.
Technological Trends:
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The well-recognized technology trends that are influencing the evolution of the network
indicate that:
The cost of a call is becoming even more insensitive to the distance;
The modularity of the network is increasing;
The networking is shifting from circuit-switched to packet-routing;
The voice communication is now independent of the network;
The geographic boundaries are irrelevant for emerging technology;
The intelligence and function are moving away from the central office.
In these conditions competition is very strong among competitors. Zong is improving
itself in technology.
COMPETITIVE FACTORS
Major competitors of ZONG include
Mobilink
Ufone
Telenor
Warid
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COMPETITORS
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Cellular
Provider
Mobilink
Ufone
Telenor
Warid
Zong
Zong customers
Zong launched its service all over Pakistan in April 2008. Earlier on, we assumed that
they inherited ordinary network which was under consistent up gradation since China
Mobile acquired Paktel, but even after 15 months quality of Zongs network has not
reached up to the standard.
We know that Paktels GSM network was rolled out by ZTE, however, latter contracts
were granted to Ericsson and Alcatel-Lucent. So when we talk about technologies, Zong
has the benefit of experiencing both European and Chinese vendors.
It is said that complaints, largely coming from central and south regions are more of
maintenance flaws instead of network equipment constraints. It is believed (by network
experts) that network engineers (from RF) are responsible for significant number of
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downtime of cell sites, lack of statistical data keeping, planning, and optimization of
network and its utilization.
Voice quality, network congestion, signals issues or not signals at all, and similar
concerns are what bothering Zong customers despite the best tariff available.
FUTURE STRATEGY:
More transparency and increased flow of information b/w CMCC and Zong
Acquisition of other cellular companies in Pakistan.
Market leadership by utilizing strengths of acquired companies
CONCLUSION:
Since CMCC takeover i.e. within one year only, Zong has achieved great milestones.
Some of the achievements are as follows:
Growth in the subscriber base from 2 million to 6 million.
Many products like BYN Franchise, Super Free Number, BYN Home Delivery,
BTO Media Campaign, Yaari Load, Unlimited Free Numbers, 12 Aana package,
8 Aana Package, SMS bundle, Handset offer etc were launched.
The industry record was broken by setting up over 3000 BTS Towers in a year as
Phase one regime.
Many mini exchanges were installed for capacity building; network has a
capacity to now support 2 crore users
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Recommendation
Zong Telecom should be increasing their network coverage and foot prints in
every corner of the country to capture the market.
Zong should adopt the strategies of market penetration market development and
related diversification, but the most effective strategy would be market
penetration.
In the SBU of Zong mobile Zong should use the strategy of hold and maintain.
Zong should hire the skilled management.
Zong should not waste their opportunities and get more help as possible.
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