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Project On: Communication Analysis of ISP’s in Pakistan Submitted To:
Respected Sir Nayyer Butt
Zeeshan Maqsood Jawad Ahmad MBA-SP08-060 MBA-SP08-032
May 18, 2009.
COMSATS INSTITUTE OF INFORMATION TECHNOLOGY, LAHORE
Table of contents
Executive summary A- Introduction A.1- Vision A.2- Mission A.3- Core values B- Marketing communication plan B.1- Environmental scanning B.1.1- provision of ISP in Pakistan B.1.2- internet usage in Pakistan B.1.3- technology adoption B.1.4- online vs. offline shopping B.1.5- competitors B.2- Objectives B.3- Strategies B.3.1 Segmentation B.3.2 Target market B.3.3 Positioning B.4- 4P’s B.4.1-product B.4.2-price B.4.3-place B.4.4-promotion B.5- Advertising Management B.5.1- Theoretical framework B.5.2- Creative brief B.5.3- Executional framework B.5.4- budgets B.5.5- Media buying and selection B.6- Conclusion B.7- Appendix B.8- Bibliography
We take the honor in submitting the concise and concrete marketing plan of establishing an ISP in Pakistan, which serves as a basis and covers the fundamental aspects of marketing an ISP. While visualizing the mission of the company, we have set down the extensive objectives and for the execution of those objectives; the strategies are designed like Segmentation, Targeting and Positioning (STP). In this context a detail scenario of ISP and Telecom industry, its scope, the current market situation, product and competitors are stated. As there are a lot of ISPs working in Pakistan so we have also included the complete SWOT analysis of ISP industry. Moreover a vast analysis of market segments, market trends, user demand and market share of different contenders are given. Our company is a company ambitious to provide customers with complete solutions of Internet and local network needs. We have included the executional plan; a complete media plan which include where to advertise and when to advertise our new ISP. In the end, cash flow and profit & loss statement are in the homework of the plan. (Group Members)
CONNET is an international UK based internet service provider (ISP) having operations in different countries like UK, Sri Lanka, Bangladesh and India and now willing to provide its services in Pakistan by introducing Broadband and EDGE technologies to enhance its customer base in order to compete in the market. The core values we are focusing on are the customer oriented and economical as well as profitable for the organization. An intense market research on internet service provider opportunities showed that there is a great potential in the Pakistani market, and the internet intensity as yet to be served. To avail this great opportunity the CONNET is focusing to provide better quality services to its customers by ensuring reliable and affordable internet services. CONNET works in close connection with clients and their people. Local discussion and agreement of new ways, integrating additional know how from our global network, guarantees solutions with high practicability and effectiveness. CONNET creates new opportunities. Our in-depth experience is the foundation for developing the right solution for each client and building our clients strengths to make them the best in their class means forging new pathways and roads to innovation. CONNET will provide the customers with great internet service having fast speed and connectivity and after sale services in order to make them and retain them as loyal customers. In order to provide the country into a digital revolution with its ability to seamlessly connect and enable smarter, faster, cost-effective and flexible internet solutions to reach its valued customers. CONNET offers a complete range of carrier class internet services like fixed wireless and line internet, always-on broadband for data, internet with a host of other value-added services and applications to set the standards for a new era of communications and entertainment in Pakistan. CONNET offers Total Internet Solutions for both, the business and home user. With ever expanding horizons, CONNET provides facilities.
A.1 Our Vision-:
CONNET creates new opportunities. To be the leader in internet and communication services with the help of our core competencies including reliable, cost efficient and Fast pace services.
A.2 Our Mission-:
We want to capture the target users of internet in Pakistan by providing them with affordable, reliable and faster internet services for the individual and corporate customers. Our company’s objective is to adopt the latest Broadband technologies such as, VOIP, DSL, WiMAX and FTTH.
A.3 Core Values-:
• • • •
Professional Integrity Customer Satisfaction Teamwork Company Loyalty
Marketing Communication Plan-: Environmental Scanning-:
Environmental scanning mainly focuses on the internal strengths and weaknesses as well as external opportunities and threats. The core strengths of CONNET are that we are providing reliable, cost efficient, speedy and innovative internet services. The area we would have to improve the advertising strategies by focusing on the customer dynamics and market opportunities. The market offers a great deal of opportunities like lower internet usages, lower technology adoption rate, lower internet awareness, lower reach like in rural areas especially and lack of introduction of new technologies. The main threat is the monopoly of the main player PTCL which have maritime linkages with the global players; others include higher competition among the existing ISP’s, lower literacy rate.
B.1.1 Provision of ISP’s in Pakistan-:
Digicom launched the first international Internet service in Pakistan in 1995. The licensing of commercial Internet service providers began in 1996. By mid1999licenses to provide Internet services had been issued to approximately 100 organizations. By mid-2000, the number of Pakistani users had grown to 500,000. In year 2005, the total number of Internet Service providers has crossed 2000 mark and subsequent Internet users have reached to a roaring total of 10.5 Million. (Impact of Internet on Society -Pakistan Community National University of Computer
and Emerging Sciences (NUCES) Faisal Town, Lahore, Pakistan)
Presently, there is 38 main ISP’s working in Pakistan. The main ISP’s include cybernet, WOL, Brainnet, Wateen, COMSATS and PTCL. These ISP’s are providing services through WiMAX, dialup, DSL and Broadband wireless technologies. In 1998-99, simplex satellite Internet services (receive only) were introduced in the region by some service providers like Zaknet. ISPs started using these services as costs of PTCL leased lines (IPLCs) were prohibitively high. But PTCL started harassing ISPs by conducting raids and shutting down the operations of ISPs who were using simplex satellite services. ISPAK took up this matter with PTA and Ministry of Communications with full protest and threatened to go on a strike with all ISPs of the country shutting their operations. Upon intervention of the Secretary, Ministry of Communications and PTA, immediate written orders were issued by PTA to restore the services of AKNet in Lahore and disciplinary proceedings against PTCL officials responsible for shutting down the ISP were initiated. Before year 2000, the subjects of Information Technology, Internet and Telecommunications were dealt by the Ministry of Communications which has so many other departments to look after like national highways, ports and shipping, postal services, etc. The IT industry felt that this new and dynamic subject handled by a conventional Ministry was too neglected by the Government. Numerous representations and proposals by made various stakeholders including ISPAK to the Government to create a separate Ministry of IT. The then Chief Executive of the country, Gen. Pervez Musharraf, through an executive order in March 2000, created a new Division named IT & Telecommunication Division under the Ministry of Science & Technology and moved the telecom subject from the Ministry of Communications to this newly created Division. An eminent scientist, Prof. Dr. Atta Ur Rahman was appointed as the Minister for Science & Technology who with his dynamic leadership brought profound reforms in the IT & Telecom sector of the country in a short period of time. In 2003, a new Ministry of IT & Telecommunications was created by the Government of Pakistan be separating IT & Telecom Division from the Ministry of Science & Technology. (ISPAK, Internet service providers association of Pakistan) http://www.ispak.com.pk/achievements.php Broadband Usages in Pakistan-: Out of the estimated 2.5 million internet users in Pakistan, currently there are about 29000 (91 per cent cable and 9 per cent DSL) broadband subscribers in Pakistan, showing a penetration rate of 0.016 per cent. All broadband subscribers are in the three main cities of Karachi, Lahore and Islamabad. Broadband internet services have much higher number of users in the countries like Korea, Japan, Canada and Egypt.
(Internet Service Providers in Pakistan welcomes broadband policy Pakistan Times Business & Commerce Desk) http://pakistantimes.net/2004/12/26/business2.htm
B.1.2 Internet usage in Pakistan-:
In Pakistan 2009, the internet users reaching a record number of 17 million. Previously there were 133,900 internet users in 2000 (0.1% of total population), and there were 12 Million in 2006 (7.2% of total population) and presently the users exceeded 17 Million in 2008 (almost 14% of total population)
http://euromonitorinternational.com/pakistanstatistics) Around 1.5 million people living in Pakistan are reported to use the Internet regularly with a growth rate of 125.6% during 2002–2004. However, the real statistics may be greater than the official figures, which normally do not include Internet cafes set up in every corner of all main and small cities to facilitate teens of low-income groups to use the Internet. (www.internetworldstats.com) Today, the Internet is more easily accessible in schools, colleges, and public libraries. The use of the Internet has become mandatory in business, both for the seller and the consumer. In addition, the cost of computers is becoming more affordable so the number of home computers is rapidly on the rise. With such accessibility, the Internet has become an integral part of our lives. (Effects of Excessive Internet Use on Undergraduate Students in Pakistan, CYBERPSYCHOLOGY & BEHAVIOR Volume 9, Number 3, 2006 © Mary Ann Liebert, Inc. ) Pakistan has experienced considerable growth in its information communications technology (ICT) sector; in 2003 the government deregulated its telecom market, opening itself up to corporate competition in telephone, mobile, and Internet services. Internet access is widely available at cybercafés, which accommodate many lower-income and casual users. Rates for usage range from USD0.15/hour to upward of USD0.50/hour, depending on location and amenities. (open net initiative, Published on 10/May/2007)
B.1.3 Technology Adoption-:
Computers came in Pakistan in 60’s. Internet service was provided in 1995 which was just the beginning. Technology adoption rate was very low in 90’s as
organizations were not focused towards technology. The use of technology has increased over the past few years due to cheaper computers, internet rates, easy accessibility and greater competition among ISP’s. The main sectors of technology adoption are Education, Medicine, Banking, Entertainment, Business, Marketing and Communication, Textile designing, Architecture and Agriculture Technology adoption rate was growing at a fast pace of 125.6% between 2002 & 2004 (CYBER PSYCHOLOGY & BEHAVIOR Volume 9, Number 3, 2006 Mary Ann Liebert, Inc. Effects of Excessive Internet Use on Undergraduate Students in Pakistan)
B.1.4 Online VS Offline Shopping-:
The real sense of online shopping is E-commerce. Online Shopping is easy to Use, faster transactions, cost effectiveness, 24/7 Activities, no space limit and convenient.
Online Shopping Trends in Pakistan are as follows:
65% people use internet once a week 98% are not satisfied with the service 2% people have bought online 99% people have bought only once 99% people feel insecure doing transactions online Very few Online Stores TCS offers gifts and gadgets for online purchase The idea failed due to the following reasons: Discomfort at giving away their credit card info. Security concerns due to corruption Illiteracy Low internet connections http://www.propakistani.com/ (Attaa,A., 2008) In Pakistan, e-commerce is still in its infancy and faces many barriers to grow. The notable barriers are misconception of E-commerce in Pakistan are low literacy rate, access to technology is late, policies of Government, unavailability of proper infrastructure, limited user of internet, the issue of security of transactions on the internet, high bandwidth rates the rigid and monopoly role of the PTCL. Barriers to Online Shopping: (Iqbal, A., 2009) Now people are getting aware of the importance of business on the internet rapidly and this will prove good in the favor of Pakistan. Banks are playing an important role in increasing the awareness of E-commerce in Pakistan. The banks start e-Banking and also the availability of business account that will help
the investors to invest in the internet business. Pakistan became a member of AFACT in September 2000 at Taipei, Taiwan and was nominated its Chairman last month at AFACT 2002 held in Kuala Lumpur, Malaysia. Which surely reflects that e-Commerce got a very bright future in Pakistan. http://ezinearticles.com/? Future of E-commerce in Pakistan
B.1.5 Competitors Analysis-:
Presently there are approx 38 main ISP’s working in Pakistan. Our competitors in ISP’s market of Pakistan are of varying size and quality of service. The main competitor ISPs in the country include Cybernet, COMSATS, Brainnet, Wateen,WOL and Paknet (a subsidiary of the Pakistan Telecommunications Company Limited, or PTCL). WATEEN-: Our big competitor in WATEEN telecom because it is providing similar kind of services like WiMAX Broadband and having following vision, mission and core values. (http://www.wateen.com/AboutUs.aspx)
CYBERNET is the largest Internet and Data Communication Network Service Provider in Pakistan. The company offers various services to the corporate and consumer sectors and it is exploring the possibilities to extend several other unique online services to its over 350,000 valued customers. Cyber.Net with approximately 280Mbps bandwidth countrywide and approximately 18000 dialup ports at present is completely geared towards providing customers with timely, reliable, superior services and solutions. (http://cyber.net.pk/aboutus.asp)
To launch Pakistan into the 21st century digital revolution by providing complete communication solutions to Telecom Operators, Corporate, Consumers and to be the leading “Carriers’ Carrier” by creating a world-class cutting-edge network to deliver a broad range of reliable, affordable and quality customer-centric services.
To attain market leadership and expansion in the IT and communication sectors by leveraging ISP/ASP, Data Networking and Software capabilities.
To become leader in innovation and contribute IT awareness towards society. To be dynamically growing organization in ISPs and telecom industry by achieving Internal & external customer satisfaction, superior & beneficial solutions, brining internet into common person’s life and to provide value of your money. Being Internet Service Provider and technology seeker, we believe in creating internet & technology awareness towards common public. Further, keeping in view Pakistani job market we try to contribute by becoming favorable employer and facilitate human resources at our best so that they can meet common needs with high esteem.
Why to choose these ISP’s as Competitors-:
We have included the above ISPs in our main competitors list because. These three ISPs are well known ISP in Pakistan They provide the quality services to their clients. They are using different augmented services like excellent customer feedback and excellent handling of customer’s inquiries to satisfy their needs.
Their Core Values-:
• • • • • Simplicity: Practical and easy-to-use Satisfaction: Customer satisfaction is foremost Quality: Premier services; no compromises Innovation: Always at par with the latest technology Honesty: Practice what we preach: integrity, communication
The media used by WATEEN for advertising are as follows: T.V, newspapers, magazines, billboards, internet, broachers and pamphlets
B.2 Our Objective-:
Our company’s objective is to provide the customers the reliable, cost efficient, fastest and innovative services that can enhance the quality of internet services as well as the customer base of CONNET.
To achieve our broad objectives we will use:
Segmentation is the process of dividing the whole market in different segments which are homogenous within the segment and heterogeneous outside. We will segment our market on the basis of:
Geographically we will first cover the whole market of Lahore and then move to the market of Karachi, Islamabad.
On the basis of demographic we first segmented our corporate users in the core segment and then students on the secondary segment. There will be another segment of the home users.
B.3.2 Target market-:
After segmentation the second thing is to serve the target customers so CONNET targeted the:
Primary Target Market-:
Our primary target market is the corporate sector like Multinational organizations, Telenor, Mobilink, cash and carry and warid.
Secondary Target Market-:
Our secondary target market is the Students, home users and: • The people from Upper classes
The people from middle classes
As our primary target market is corporate sector and secondary target market is the consumer from upper and Middle class so we positioned our services in the mind of target market through providing ultimate internet speed.
B.4 Four P'S-: B.4.1 Product Strategy-:
As our ISP is a service based company and it provides the service of internet, so our service strategies are as follows.
Services we will offer-:
CONNET provides services like Web hosting, domain registration, shared, leased and committed bandwidth solutions services to the corporate sector. Some of the services are as follows: • • • • • • • • Satellite Broadband Solutions Internet Bandwidth Solution ISDN Services DDP – Dedicated Dialup Port services Video Conferencing Wireless Solutions Corporate Mail Solutions Customized Web mail solution (POP3 Based)
B.4.2 Pricing Strategy-:
Price is the main revenue generating factor in any company. So we will use the price penetration strategy.
Price Penetration Strategy-:
Using the price penetration strategy we will shape our packages low price to capture the new customers for obtaining competitive edge on the competitors. For that we will: • • Provide extra internet hours on usage of specific internet hours. We will also be serving the corporate sector with a low rate of DSL. Its price will be 1000 Rupees for one month.
B.4.3 Placement strategy-:
There are mainly two channels are used for this purpose: • • Direct Distribution Channel Indirect Distribution Channel
We will use both these types of channels like we are serving to the corporate through direct channel by rendering them the service of DSL. And for serving the home users and students we use Dealers network. We plan to have four main dealers in Pakistan in Karachi, Lahore, Rawalpindi and Islamabad.
B.4.4 Promotions Strategy-:
We will use print media and outdoor advertising for its promotion. However in spite of this we will also use many tools in its promotion like: • • • • • • Publicity Word of Mouth Emphasis on Event Marketing Outdoor Media Electronic Media Radio
We are initially going to launch our ISP through Outdoor and print media advertisement.
B.5 The Advertising Management-: B.5.1 Theoretical framework-:
In developing an advertisement for an advertisement campaign, several theoretical frameworks are useful. As our product in the introductory stage so we are using the hierarchy of effects model.
Hierarchy of effects model-:
It clarifies the objectives of the whole advertising campaign and for each individual advertisement. The model facilitates the marketing team in identifying the best messaging strategy. It has following steps: Cognitive • • Awareness Knowledge
Affective • • • Liking Preference Conviction
Conative • The actual purchase
These steps are sequential. Consumer will spend the period of time at each step before moving to the next, thus before a person can develop a liking for CONNET, he or she must have sufficient knowledge about our services. Fot that first we will provide awareness and knowledge for the sake of building brand image then we will build brand superiority to cultivate strong convictions that CONNET is superior to the other brands in the market, and finally making the customers to avail the services of CONNET.
B.5.2 The creative brief-:
Typically creatives work with a document called “creative strategy” or “creative brief”. The basic components are:
Our main objective is to increase brand awareness, brand image and increase customer traffic.
The target audience-:
Our primary target market is the corporate sector like Multinational organizations, Telenor, Mobilink, cash and carry and warid. Our secondary target market is the Students, home users and: • • The people from Upper classes The people from middle classes
The message theme-:
As we want to become the leading ISP in Pakistan, it shows our competitive edge to over competitors. Our USP is "Use CONNET to get an excellent internet experience"
CONNET will be providing better reliability and quality internet services with fastest speed.
The constraints which we have to face can be legal regulations, rules and laws and obligations.
B.5.3 Executional framework-:
An executional framework is the manner in which an ad appeal is presented. The executional framework is chosen as we are using emotional and rational appeal based on an excellent internet experience.
Slice of life-:
In slice of life commercials we will attempt to provide solutions to the every day problems that consumers and businesses have to face like poor connectivity, speed and reliability.
B.5.4 The advertising Budget-:
Before Launching CONNET our budget will be Rs.5, 000,000. At the time of launching it will be Rs.6, 500,000. And after the launch it will be Rs.8, 500,000.
B.5.5 Media Selection-:
The two primary aspects of media selection are media planners and media buyers for an advertisement campaign.
The media planners formulate the media program stating where and when to place an advertisement. Our media planner will be Gallup Pakistan. Gallup Pakistan is the pioneer in Electronic Media Advertising Monitoring in Pakistan. Since its launch in 1989, the service has been providing a pool of valuable knowledge of the Electronic media Advertising to its Clients. Owing to its vast experience in the field, the database is to date the largest and most credible source of information on Advertising Expenditure in Pakistan. Gallup Pakistan AdTrak Services for Print & Media is the only service that offers audience and
advertising data built into a single database. This enables the Clients to compute the per-thousand costs for their own and competitors’ advertising conveniently. (http://www.gallup.com.pk/adtrack.php)
Our media Buyer will be Angel Broadcasting Networks (ABN). Angel Broadcasting network specializes in local, regional, national and international media placement. We have purchased time and tracked results on every significant station in Pakistan. Client’s benefit from their expertise because they contact, negotiate and purchase airtime. Our information and knowledge is fresh; our buyers are knowledgeable and their relationships in the media circles are nurtured on an ongoing basis with regular interaction. Their large portfolio of clients gives us the strength for volume buying. Their knowledge of the marketplace and relationships with media stations translate into the development of solid media plans. Time & Space Media’s long experience means that they have great relationships in the media industry. Long term relationships, a stellar reputation and in-depth industry knowledge lead to great rates and buying opportunities for their clients. (http://abn.net.pk/)
We are going to launch CONNET in Pakistan by providing reliable, fast and affordable internet services by knowing the existing market in Pakistan and potential of internet usage by different age groups and market segments. From our study which we have made on the different ISP in Pakistan we came to know the different strategies and Packages they have and in this response we make better strategies and packages which are at quite high position to grasp and snatch the market share in Pakistan. From our study which we have made on the different ISP in Pakistan we came to know the different strategies and Packages they have and in this response we make better strategies and packages which are at quite high position to capture the market share from the jaws of market leaders. There is still a great potential in this field of internet but the main thing is that how to utilize the gap of excellence and access, so we are quite sure that we are able to give the users an ultimate high speed experience of internet connectivity with affordable price.
Internet Usage and Population Statistics:
0.1 % 7.2 %
N/A US$ 690
Note: Per Capita GDP in US dollars, source: United Nations Department of Economic and Social Affairs.
Internet 2005 indicators Internet users ('000)
10,500.00 12,000.00 13,561.05 15,544.10 17,980.95
Commercial airtime Scrolls
GEO Har Pal (24 hours) 30 minutes to be utilized as follows: 60 seconds per hour from 0000-1759 120 seconds per hour from 1800-2359 102 scrolls of 10 seconds each to be utilized from 0000-2359 102 scrolls of 10 seconds each to be utilized from 0000-2359 Total: 64 minutes PKR 2,825,000/= + GST
Total duration Cost
New Packages For All Regions (Except Karachi & Sialkot)
ValidityPromoTimingRegions PackageRate CYBERSTUDENT 10 (Chowka) CYBERSTUDENT 20 ( Chakka ) CYBERSTUDENT 50 Region South, North Central CYBERSTUDENT 100 4 Flat @ Rs. 2.5/= 6 Flat @ Rs. 3.33/= 20 Flat @ Rs. 2.5/= 40 Flat @ Rs. 2.5/= 4 Days 6 Days 15 Days 30 Days Night Free Night Free Night Free Flat Rates Flat Rates, Night Free ( 1 am to 9 am ) Night Free timing ( 11 pm to 10 am ) Night Free timing ( 10 pm to 9 am )
Position Front page upto 215 cms Front page above 215 cms Single Back page upto 215 cms Back page above 215 cms Spot Color Single 4 Color Weekend Edition News style/Readers advertisement Creative advertisements-Front Page Creative advertisements-Back Page
Daily News Edition Single Single Single Single Single Single Single Single Single Single
Premium 100% 150% 50% 75% 25% 75% 10% 100% 150% 150%
(Impact of Internet on Society -Pakistan Community National University of Computer
and Emerging Sciences (NUCES) Faisal Town, Lahore, Pakistan)
(ISPAK, Internet service providers association of Pakistan) http://www.ispak.com.pk/achievements.php (Internet Service Providers in Pakistan welcomes broadband policy Pakistan TimesBusiness&Commerce Desk) http://pakistantimes.net/2004/12/26/business2.htm
http://euromonitorinternational.com/pakistanstatistics) www.internetworldstats.com) (Effects of Excessive Internet Use on Undergraduate Students in Pakistan, CYBERPSYCHOLOGY & BEHAVIOR Volume 9, Number 3, 2006 © Mary Ann Liebert, Inc. ) (Open net initiative, Published on 10/May/2007) (CYBER PSYCHOLOGY & BEHAVIOR Volume 9, Number 3, 2006 Mary Ann Liebert, Inc. Effects of Excessive Internet Use on Undergraduate Students in Pakistan) http://www.propakistani.com/ (Attaa,A., 2008)
Barriers to Online Shopping: (Iqbal, A., 2009) http://ezinearticles.com/? Future of E-commerce in Pakistan (http://www.wateen.com/AboutUs.aspx) (http://cyber.net.pk/aboutus.asp) (http://www.gallup.com.pk/adtrack.php) (http://abn.net.pk/) (http://dailynews.com) (http://www.cyber.net.pk/home_user/cyberstudent.php) (http://www.geo.tv/geopages/ratecardgeonews.htm)
http://euromonitorinternational.com/pakistanstatistics) (http://internetworldstats.com) www.pakistanadvertisement.com www.google.com
Zeeshan Maqsood MBA (COMSATS) Lahore, Pakistan. E-mail: email@example.com Cell: 0300-4111570