BBA (hones) Marketing

Session 2006-2010



Internship report is submitted to the Govt College of Management Abbottabad. In partial fulfillment of the requirements for the Degree of Bachelors of business administration.

Session 2006-2008



I dedicate this report to my parents and friends in recognition of their worth and to my teachers who are the guiding force for me and it is their effort and hard work that showed me the path of success and prosperity which would be there for me for the rest of my life. My thanks to all those who have generously contributed their theoretical knowledge to this report including my teachers. Without their understanding and support, completion of this work would not have been possible. I hope people find this report useful and the subject matter adds to their knowledge. “Keep your dreams alive. Understand to achieve anything requires faith and belief in yourself, vision, hard work, determination, and dedication. Remember all things are possible for those who believe.” Merlin Olsen


APPROVAL SHEET . SUPERVISED BY: Name: Signature: Designation: External Examiner : Name: Signature: Designation: 4 .

5 .

Because they guided and provided me valuable information regarding my report. First and foremost problem that every student faces is the selection of a Report. I am very thankful to staff members of MOBILINK ISLAMABAD PAKISTAN. For the completion of my report I am indebted to plenty of people for their very sincere cooperation that they extended to me at various stages. Zaid Hafeez PREFACE 6 . During my course and the execution of my report.ACKNOLEGEMENT First of all I am thankful to the most merciful and ALMIGHTY ALLAH who gives me the strength so that I can fulfill my task with efficiency. I am very thankful to my supervisor Madam Baseerat Riswan for helping me out in time of confusion. I had a real chance to learn from her vast experience and immense knowledge.

depend on its people. At the same time.a base of over 30 million and growing. These people working as General Managers must be trained and kept motivated. started its operations in 1994. etc. In addition to providing advanced voice communication services that makes the lives of millions that much easy. In other words. As voice over IP. both the postpaid (Indigo) and prepaid (JAZZ) brands are the largest brands of their kind in the Pakistan cellular industry. offered good working environment and must be acknowledged at work. web conferencing and online video sessions are becoming popular these companies have bright future ahead. 7 . everywhere. private business. Telecom industry is growing in Pakistan. Mobilink places high importance to its coverage. With a population of 15 million countries. we speak your language. which is why we cover you in 8000+ cities and towns nationwide as well as over 120 countries on international roaming service. Mobilink offers exclusively designed tariff plans that cater to the communication needs of a diverse group of people. telecom is one of the best revenue generated industry. To achieve this objective. we also offer a host of value-added-services to our prized customers. We pride ourselves on being the first cellular service provider to operate on a 100% digital GSM technology in Pakistan that also provides state-of-the-art communication solutions to its customers. whether it is a multi national.Every organization. from individuals to businessmen to corporate and multinationals. and has become the market leader both in terms of growth as well as having the largest customer subscriber base in Pakistan . a subsidiary of Orascom Telecom. with new companies getting license the competition is tough as a result the consumer is getting benefit and enjoying cheap call rates. we offer both postpaid (Indigo) and prepaid (JAZZ) solutions to our customers. Mobilink GSM. Compared to our competitors. government offices.

1 3.4 2. Executive summery CHAPTER NO 1 INERDOCTION TO REPORT 1.2 Page 5 to 30 INTRODUCTION TO MOBILINK (GSM) PAKISTAN 2. List of chart 5.6 2.9 2.2 1.5 Introduction Marketing Management of Mobilink Marketing Analysis Positioning Market Segments 8 Page31 to 41 31 31 31-32 32 32 . Introduction to Mobilink Telecommunication industry of Pakistan Role of the telecom giants in Pakistan economy Historical background of Mobilink Core values and mission statement Financial Information Achievements and Awards Historical background of sales department Products /Services of Mobilink Customer services centers My Task\Duties\Responsibilities during internship 5-7 8-9 9-12 12-14 14-15 15 15-16 17-19 19 20-23 24 25-30 CHAPTER 3 MARKETING 3.4 1. List of table 4.8 2. Mission.12 Vision.10 2. Values.1 2.7 2.TABLE OF CONTENTS 1.3 1.2 2.11 2.5 1. List of graph 6.3 2.2 3.6 Introduction Background of studies Purpose and aim of the studies Methodology of studies Limitation of the studies Scheme of the report Page1 to 4 1 1 2 2-3 3 3-4 CHAPTER NO . Table of content 3.1 1.4 3. Preface 2.3 3.5 2.

4 Analysis Strategy 59-64 CHAPTER 6 Page 65 to 68 CONCLUSION & RECOMMENDATIONS 6.3 Organic and Mechanistic Structure 59 5.6 Administrative Structure 54 CHAPTER 5 Page 55 to 64 ANALYSIS OF THE REPORT 5.1 SWOT Analysis 55-57 5.8 3.1 Major Departments 42-43 4.9 3.10 3.4 Organizational Sales Department Structure of Mobilink 53 4.3.2 Analysis Structure 58 5.11 Product/Services & Product/Service Strategies 32-34 Pricing Strategies 34-35 Promotion 36 Distribution 36-37 External Environment 37 Sustaining the mobile cellular growth of Pakistan 38-41 CHAPTER 4 Page 42 to 54 DEPARTMENTALIZATION 4.5 Corporate Profile 53-54 4.2 Recommendations 62-68 References 73 9 .2 Main Departmental Functions 44-48 4.6 3.1 Conclusion 65 6.7 3.3 Mobilink organitional structure 49-52 4.

1 Employment and foreign direct investment in telecom sector 2.LIST OF TABLE 2.3 Telecom Sector share in GDP (%) 10 11 13 LIST OF CHART 2.1 Departments of Mobilink 17 44 LIST OF GRAPH 3.6 Profit Growth of the PMCL group over the past 4 years 4.2 Total number of subscribers of the cellular services 2.1 Pakistan Mobile forecast Market Shares of Pakistan mobile companies Industry Trends-Mobile Sector Cellular Subscribers growths 41 73 74 75 EXECUTIVE SUMMARY: 10 .

I worked in Mobilink GSM as an internee. It was a great experience for me and it helped me in realizing where my potential lies. This report also reflects my learning and experiences at Mobilink along with my responsibilities and the tasks that I performed.Internship was my first step in practical life. This internship has also prepared me for my future career in Marketing so this internship has helped me a great deal. teamwork and how to handle problems occurring. This report gives a profile of Mobilink and an insight into the Marketing department where I was assigned to work. What I learnt at Mobilink over the weeks was how to get along with the people that I have to work with everyday. The experience has taught me responsibility. building confidence and improving my skills. nevertheless I got to see what practical life is. CHAPTER 1 11 . This internship overall has been a great experience. During the month of July and August 2010. Even though the nature of work was quite basic as an internee. My association with this company was being a part of the Marketing Department. through which I learnt a lot and it has aided me in being well equipped with valuable experience that would help me once I enter the professional life after the completion of my studies.

Working in the corporate sector. foremost amongst them being the pioneering role played by Mobilink. interviews and practical working in Mobilink GSM. 1.1 Introduction This report is based upon the findings related to the company’s operations in general and specifically in the Marketing facet. Mobilink GSM is the pioneer cellular company of Pakistan with a customer base of over 30 million. 12 . It is a subsidiary of Orascom Telecom. into a booming industry through aggressive investment and expansion of coverage present in more than 1500 cities towns and villages of Pakistan. a as the fulfilment of the course requirement of the degree of Bhechler of Business Administration Hazara University Mhanshera.Mobilink: 1.2 Background of the Report The development of the telecommunication sector of Pakistan owes much to the contribution made by the cellular companies. a eight weeks internship for the degree of Bachelor of Business Administration Hazara University Manshera. especially one as diverse and rapidly growing as the telecommunication sector of Pakistan. It can be rightly called one of the fastest growing sectors with a huge potential market. Mobilink started its operations in 1994 and has become the market leader both in terms of growth as well as having the largest customer subscriber base in Pakistan. 1. A eight weeks internship was conducted at Sales Department of Mobilink (Gsm) office Abbottabd. discussion.3 Purpose and Aim of the Report The purpose of the internship report is:  The fulfilment of the course requirement. The company has successfully transformed an initially slow-paced industry. as an internee provided me with an opportunity to evaluate the company’s practices and to compare these practices with the contemporary organizational practices in the world today as well with the practices of the other organizations in the industry. In this report I have tried to cover the Marketing and Sales activities of organizations prevalent in the country today with the help of observation.  To evaluate the Marketing Policies and to compare these practices with the contemporary Marketing and Sales strategies.

Watching the daily activities being performed and observing the mechanisms being used aided the study process and helped in learning to perform those activities.6 Scheme of the Report 13 .4. 2004. Interviewing the staff members about their daily work.  To apply the knowledge thus obtained to the practical field.4 1. 1.4. 1.4.1 Methodology of Study Practical participation Performing the work in the organization provides hands-on experience that carries invaluable learning opportunities for the internee. To find out the variation present between the existing practices and those expected in an organization today along with the factors that inhibit the adoption of the standard practices.5 Limitations of the Study Eight weeks is a relatively short period of time and hence could not prove sufficient to understand and conduct extensive research on the Marketing in progress at Mobilink GSM. 1. The latest financial statements for the year 2006 were not available which the reason financial statements are for the years 2003. 1. 1.4. the Marketing and Sales manual and the company website. 1. The company practices were learned and carried out to gain first hand experience in conducting day-to-day operations in the organization. The authorities were reluctant to share the company documents. and the policies of the company provided a useful input into the study process.4 Secondary data collection The source of secondary data was the company’s financial statements’ audit report. interviewing the staff members and personal observation.3 Primary data collection The source of primary data was practical participation. and 2005 have been included in the annexes at the end. forms and confidential information.2 Observation and interviews One important method adopted for conducting the study was observation.  To present solutions to the gray areas of Marketing in the contemporary organizations.

the corporate profile. core values and the financial information. Conclusion and Recommendations are presented in the last chapters that are based upon the analysis of the data and findings of the study. The second chapter introduces the organization. postpaid Indigo. Product. Chapter four consists of the analysis of the report and findings.The first chapter states the purpose of the report and the aim of the research study. as the fulfilment of the course requirement of the degree of Bechler of Business Administration. The third chapter covers the Marketing process of the organization. Starting with a brief overview of the Marketing. Mobilink GSM. Price. Mobilink PCO. prepaid JAZZ. A SWOT analysis of the company provided a base for some suggestions that have been made in the subsequent chapter. it follows through with details about the four Ps of the Marketing. general information related to the company. Place and Promotion. Administrative structure. its Parent company Orascom Telecom. based upon the findings in the previous chapter. the products it offers. The analysis was conducted in comparison with the contemporary practices. 14 . historical background.

In return. This commitment to delivering world-class quality translates into unmatched service and value for our customers and all stakeholders. We contribute to worthy causes and are dedicated to the development and progress of the society. They have placed their trust and confidence in us. We respect and esteem our employees and all stakeholders. we take pride in practicing the highest ethical standards in an open and honest environment. quality and value beyond their expectations. Respect for People: Our relationships drive our business. we recognize and fulfil our responsibility towards our country and the environment we operate in. We believe in teamwork. we strive to anticipate their needs and deliver service. empowerment and honour. Trust & Integrity: At Mobilink. and treat everyone fairly. We aspire to the highest standards and raise the bar for ourselves everyday. and with trust and respect. and by honouring our commitments. We take personal responsibility for our actions. 15 . Responsible Corporate Citizen: As the market leader. business partners and shareholders Values: Commitment to Total Customer Satisfaction: Customers are at the heart of our success. Mission: “To be the unmatchable mobile system of communications in Pakistan this provides the best value to its customers.CHAPTER 2 Introduction to the organization Mobilink: Vision: "To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations". Passion for Business Excellence: We strive for excellence in all that we do. employees.

Mobilink Website is designed to perfection and give impressions that professional are sitting behind to manage it. Mobilink is giant is this the reason that they are still expensive as compare to other companies like Ufone and Warid Tel. We pride ourselves on being the first cellular service provider to operate on a 100% digital GSM technology in Pakistan that also provides state-of-the-art communication solutions to its customers.a base of over 30 million and growing. 16 . With professional approach and highly skilled staff behind Mobilink is the premier choice for subscribers nationwide. Every thing is clear and described on the website navigation is clean and no one seems to be lost on the web. a subsidiary of Orascom Telecom. 500/month of unlimited usage this is the treat for GRPS users those who want to take their office with them Mobilink give them ease with reason able charges. As the competition is growing I hope the rates will be cut down to attract more subscribers.25/min still expensive as compared to Warid but giving incentive to subscriber there is an additional cost of RS 25 to add friends and family number which is not fair. Mobilink has the good infrastructure and network is established well. and has become the market leader both in terms of growth as well as having the largest customer subscriber base in Pakistan . Mobilink also started 3 friend and family number with a charge of 2. Mobilink GSM (PMCL). The only problem I see with Mobilink is the call rates. Mobilink is major cellular company and will stand in first place many years to come. As people relay on Mobilink services that’s why Mobilink still charging high rates people specially business class hesitate to switch to other cellular company. Company is large and has the largest subscriber base in Pakistan. which in my point of view are somewhat high. Covering almost every city of Pakistan. Mobilink recently started GPRS services with RS.President and CEO Rashid Khan Premier Cellular Company: Mobilink Pakistan Premier Cellular Company Claims be to have 10 Million Subscribers nation wide what you call such a company pioneers giants whatever but the fact is that Mobilink is the largest Cellular Company in Pakistan. Mobilink being the pioneers of introducing cellular networks in Pakistan established themselves as the major cellular company of Pakistan. started its operations in 1994.

Mobilink is a giant. As people rely on Mobilink services that’s why Mobilink still charging high rates people specially business class hesitates to switch to any other cellular company. from individuals to businessmen to corporate and multinationals. It is considered among the largest and most diversified network operator in the Middle East. Mobilink places high importance to its coverage. (See Annexure A) Mobilink offers exclusively designed tariff plans that cater to the communication needs of a diverse group of people. which has grown to become a major player in the telecommunication market in the world. 2. Compared to our competitors. Africa and Pakistan.1 Introduction Mobilink being the pioneer of introducing cellular networks in Pakistan has established itself as the major cellular company of Pakistan. both the postpaid (Indigo) [Note 2] and prepaid (JAZZ) brands are the largest brands of their kind in the Pakistan cellular industry. (About Mobilink 2007) 17 . which is why it covers more than 1200 cities and towns nationwide as well as over 120 countries on international roaming service. [Note 1] Orascom Telecom's operation in Pakistan. At the same time. we speak your language. everywhere. To achieve this objective. In addition to providing advanced voice communication services that makes the lives of millions that much easy. it also offers a host of value-added-services.Mobilink offers exclusively designed tariff plans that cater to the communication needs of a diverse group of people. started its operations in 1994 and has become the market leader both in terms of growth as well as having the largest customer subscriber base in Pakistan. To achieve this objective. Mobilink. the reason being that they are still expensive as compare to other companies like Ufone and Warid. Compared to its competitors. Mobilink places high importance to its coverage. In addition to providing advanced voice communication services that makes the lives of millions that much easy. which is why we cover you in 8000+ cities and towns nationwide as well as over 120 countries on international roaming service. we also offer a host of value-added-services to our prized customers. In other words. covering almost every city of Pakistan with a customer base of over 30 million. with various GSM support and Internet operations. from individuals to businessmen to corporate and multinationals. Orascom Telecom has positioned itself as a leader in the region for its diverse GSM operations. we offer both post-paid (Indigo) and prepaid (JAZZ) solutions to our customers. it offers both postpaid (Indigo) and prepaid (JAZZ) solutions to its customers. both the post-paid (Indigo) and prepaid (JAZZ) brands are the largest brands of their kind in the Pakistan cellular industry. At the same time. It is a subsidiary of Orascom Telecom.

Every thing is clear and described on the website. The industry gained momentum after the introduction of prepaid regime in 1997 [Note 3] and granting of a license to Ufone. lack of local expertise. Mobilink is a major cellular company and will stand in first place many years to come. little or no effort to target masses. reduction in entry costs and central excise duty. Since 1990. Lahore and Faisalabad. the service providers have enhanced their capacity both in area coverage and quality. especially in cellular mobile communication and in the Internet. and aggressive marketing. Pakistan is South Asia’s fastest growing telecommunications market. unstable political conditions and security issues. Mobilink is the premier choice for subscribers nationwide. With professional approach and a highly skilled staff behind it. Karachi. with a minor effort to offer coverage in rural and less privileged areas. Overall tendency of the country has jumped to 35. its growth was slow due to non-conducive regulatory policies.Mobilink has the good infrastructure and the network is established well. navigation is clean and no one seems to be lost on the web.5 percent penetration. Seventy percent of the business comes from the four major cities i. 2. the cellular industry in Pakistan has gone through many ups and downs. Gradually. The company has successfully transformed an initially slow-paced industry. This rapid increase of customers has positioned Pakistan third in the fastest growing countries in this region following the heavily populated countries of China and India. The Mobilink Website is designed to perfection and gives an impression that professionals are sitting behind to manage it. The cellular mobile subscribers are continually soaring and it has reached 45 million with 28. Islamabad. Major reasons for this rapid growth have been network expansion.2 Telecommunication Industry of Pakistan: (A History perspective and Overview) There has been phenomenal growth in the Telecom Sector in Pakistan. [Note 4].1 Employments and Foreign Direct Investment in Telecom Sector 18 . Table 2.e. The development of the telecommunication sector owes much to the contribution made by the cellular companies.8 percent in 2007 from the mere 2.8 percent in 2001. Until 1997. In Pakistan. reluctance of major investors. foremost amongst them being the pioneering role played by Mobilink. into a booming industry through aggressive investment and expansion of coverage present in more than 1500 cities towns and villages of Pakistan. cellular companies have mostly been focusing on major cities.

Customer Service Line WLL US$ 3 to 5 billions Centers.146. of Ufone Warid Subscribers 00-01 0 0 96.589.000) 5.147 7.469.152 767.085 2.316 Source: Industry Analysis Report 2005 by Economic Affairs Section Pakistan Telecommunication Authority Zong Instapho Mobilink AMPS ne Zong Years Telenor GSM 2.000 939.536 02-03 0 0 319.215.295 4.565.957 40.272 116.536 330.986 189. describing the marketing effort.Service Mobile Direct Employment (20.000 309.316.269.989 801. The first mobile phone users in Pakistan were foreigners and the rich 19 .022. Venders.103 254.711 0 742.400 420.548 1.000 550.125 30.054.743 05-06 1.000 800.pta.579.1 A Cellular War "It is the beginning of a war.212 941.110 115.655 924.000 0 2.000 Pay Phone (PCOs) Fixed LL (5.000) Source: Home-Pakistan Telecommunication Authority http://www.453 758." said an analyst with KASB Securities in Karachi.698.063.021 535. Table 2. Franchises and distributors Foreign Investments in Next 3 to 5 years US$ 2-3 billions 15.265 648.908 04-05 835.105. they are coming up with new packages to attract and retain customers.000).648 23.000 Indirect Employment ((350. Thus as the competition among the mobile providers heats up in Pakistan.000).000 350. LDI Distributors (2.623 220.160 0 5.000) Venders.547 14.606 01-02 0 0 218.486 254. Call Centers and Telephony (8.738 3.825.000 0 06-07 2.212 5.php? option=com_content&task=view&id=361&Itemid=590 Now with entrants such as Warid and Telenor on it sheets. it is facing a number of challenges and it will have to improve its offerings and service if it wants to retain its top position.540 12.727 508.2 Total Numbers of Subscribers of the Cellular Services Total No.404.455.400 03-04 0 0 470.

even though there may be a signal there.and for the right reasons: it is one of the fastest growing sectors with a huge potential market. Each will have to invest $300-$400 million on networks. they are all offering the same thing. Looking at the billboards and media advertisements of mobile phones in Pakistan it is hard to believe that until a few years ago there was no one else but PTCL monopoly.3 Market Shares Mobilink 61% Ufone 15% Zong 8% Warid 8% Telenor 8% Role of the Telecom Giants in Pakistan Economy Recently the telecom sector in Pakistan has attracted a lot of attention from international investors . Telenor offers the best quality of any network in Pakistan. It is a numbers game. After all.2. The government is determined to make use of this opportunity to attract foreign investment. 2. The second new firm is Warid-Telecom. not just because of this overwhelming response to Ufone but the competition coming up in the future. a Pakistan-led and Dubai-backed group. Telenor will also never claim to have coverage in a city or area before the quality is up to Telenor standards. like who has how many subscribers.who could afford to buy a handset for $500 and pay half that much again to get it connected nearly 15 years ago. Telenor Network is being expanded at a very fast rate. Table 2.2.3 Telecom Sector share in GDP (%) 20 . But a paradigm shift in consumer perceptions has suddenly taken place. The stakes are very high. The network is built to Western European standards. No one wants to lose the game. The Cellular operators will have to come up with new packages. 2. with capacities of three to four million customers.3 o o o o o 2.2 New Companies Norwegian telecoms firm Telenor has announced it plans to invest $1 billion over five to seven years for a new network in Pakistan.

it is well-suited for those investors who are not satisfied with playing it safe. 2. Indirect employment was provided through franchises.7 % 1.3. now there are six companies in cellular operation. By issuing new licenses in the telecom sector. approximately 370. Mobilink introduced the GSM technology for the first time that improved security and efficiency. (See Annexure C) Mobilink has the exclusive distinction of being the only cellular company in Pakistan to have spearheaded the development of the telecommunication sector to unprecedented heights since coming into operation a little over twelve years ago. Cellular service has witnessed sharp jump in subscriber base.e.Years 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Percentage Share of GDP 1. Till now Orascom investors have been rewarded well and there is no reason for this to change in near future. leading towards a very tough competition among Employment Telecom sector was declared as a priority area for employment generation and poverty reduction by the Government of Pakistan in the year 2004. resulting in lowering prices and improved quality and service.6 % 1. With all the risk Orascom takes.0 % 2. It is fast replacing the conventional copper wire telephony.pta. Instaphone and Zong.7 % 1. The overall picture of Orascom/Mobilink is that of a strong and aggressive company which is competing effectively against its global competitors.9 % 2.6 % 1.000 direct and indirect employment opportunities were created. (See Annexure B).2 % Source: Home-Pakistan Telecommunication Authority http://www. vendors and distributors of 21 .php? option=com_content&task=view&id=648&Itemid=600 Cellular or mobile services started with only two operators i.

o Zong has also a low price positioning..346. They have also heavily supported event management.912. They have undercut their prices.. Instaphone is targeting the hip or modern generation.213. 14.9 Financial Information The total profitability of the company has shown a leaping increase.663. (Home-Pakistan Telecommunication Authority 2007) 2.8 Core Values and Mission Statement The Mobilink Vision states that: To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations.the telecom companies entering in the telecom market of Pakistan.8. Currently the subscriber base has increased to 30 million. But its customers are rather confused. an Egypt-based multinational company.196. In comparison Mobilink closed 2005 with more than 11 million subscribers with Rs.Reshaping lives! 2. Mobilink. specially prepaid will be positioned as low. later it was sold to ORASCOM. E.772. 2. (Quarterly Audit report 2007) (See Annexure D. 5. Penetrate into the markets by product and pricing strategies. It is also positioned for all the general masses. Orascom Telecom's operation in Pakistan. 22 . Mobilink closed 2003 with 2 million customers and a balance at hand of Rs. o Ufone has positioned its pricing relatively inexpensive to Mobilink. This makes Mobilink the largest telecommunication service in Pakistan.s goal is to increase ARPU (Average Revenue per Unit) o .1 Goals o Mobilink. It started with image positioning product but now they are getting into masses.. via Mobilink. o Instaphone have low price positioning.4 Historical Background of Mobilink Mobilink GSM started its operations in 1994 as the first GSM cellular Mobile service in Pakistan by MOTOROLA Inc. started off in 1994 and has become the market leader both in terms of growth as well as having the largest customer subscriber base in Pakistan 2.

The offer was aimed at the youth segment. With this price revision Mobilink also offered Indigo customers discounts on weekends and discounted calls to a selection of friends and family.2 million USD that makes around Rs. Mobilink continued to grow during the first quarter of 2006. the free encyclopedia. and added approximately three million customers. Throughout the quarter.000. which was a significant step towards strengthening the Jazz brand. Mobilink also revised its postpaid rates to further strengthen its competitive position in the high end corporate market.200 cities towns and villages across the country. By the end of the third quarter Mobilink’s total customer base reached 20.200 cell sites and 40 switches. In July the Pakistan Telecom Authority proceeded to its yearly resetting of the interconnect tariffs by reducing it from 1.860 cell sites and 45 switches providing coverage in more than 1. 2006) Diagram 2.F). following the success of Jazz Octane. 15. The growth was complimented by a similar growth in network resources. Moreover. This was accompanied by the growth in network resources. with an average of one million customers per month. During the quarter Mobilink added 9 new switches and more than 509 cell sites. Mobilink’s services were available in 500 cities across the country connected by a network of 4.2 Profit Growth of the PMCL Group over the Past Four Years 23 .25 Rupees. This revision was further strengthened by a significant reduction in international calling rates for postpaid Indigo customers. By the end of the quarter. 2006) By the end 3rd quarter. Mobilink added six new switches and more than 550 cell sites. By the end of the quarter the total network infrastructure consisted of approximately 4.6 Rupees to 1. (Mobilink – Wikipedia. (Audit report. Mobilink introduced Jazz Octane. This price revision was followed by an international rate offering for Jazz prepaid customer.000 approximately. The third quarter saw Mobilink launch a number of initiatives to further strengthen its market position: Mobilink launched a segmented offering for women under the brand name of Jazz Ladies First. During the third quarter of 2006. 2007 the revenue totaled 280.012. Mobilink continued to introduce new products.2 million customers. During the quarter. it introduced per 30 second billing for Jazz Budget. Mobilink added over 3 million new customers to its network continuing its aggressive growth rate by adding an average of 1 million customers per month.

29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 2004 2005 2006 2007 Total Balance in Pak Rupees (Billions) Profit of the year Balance brought forward from previous year Year Sou rce: Self-developed 2.10 Achievements and Awards Mobilink received the Research in Motion (RIM) award for the successful launch of the Blackberry service in Pakistan. As the exclusive provider of Blackberry service in Pakistan. Mobilink revenues increased by 50% year-on-year and 12% over the last quarter. Experience an array of services exclusive to indigo. We thank all our family members for making Mobilink indigo and Mobilink Jazz achieve the super brand status. Mobilink was awarded the license to operate in Azad Jammu and Kashmir on June 27. growth and performance above and beyond others are what set us apart. Mobilink has a distinct advantage in the corporate segment over its competitors. The Ultimate Postpaid Experience: Explore the next level of personalized and value-driven services that come together as the indigo experience. Blackberry services. The concession was awarded for a payment of USD 10 million. Super Brands: Today Mobilink – a company at the forefront of technology stands tall with the world's strongest brands. Enjoy value that remains unrivalled with an enhanced indigo lifestyle that better delivers on your business and personal communication needs. Pakistan’s favourite cellular service is the first ever-cellular network to have been awarded with the ' Super Brands' accolade. Mobilink indigo. 2006. which are contoured to become your absolute expression. Latest Offers: 24 . Reliability. innovation. have allowed Mobilink to aggressively explore data revenue streams but also strengthen its position in the voice market as well.

To be eligible. Rewarding users for there continued loyalty. All government taxes apply.    This limited time offer is valid till 25th May 2008. Jazz introduces. We have already posted an unconditional Rs. this campaign is bound to win back those of you who had moved on. Now experience the new Jazz rates and use this Free balance in any way you like. Everyone who has received the 30 rupees is eligible for even more free balance. you can choose your own SMS package and enjoy these SMS rates throughout the month! Please find below the details of the SMS fever packages: Rs. Jazz heats things up this summer with Jazz SMS fever! Now with rates as low as 1 paisa per SMS. Apna Jazz Connection ON Karein. Terms and conditions:  100% extra free balance will be given on the first recharge only   Maximum amount of extra free balance to be given to any subscriber will be Rs. In case of any recharge the bonus amount will be posted in subscriber’s account in 4 days. with free minutes across all networks for a fixed bill at the end of every month.300. virtually unlimited tariff package that will have you talking for hours... 50 500 SMS for 15 days 25 . 75 after 4 days and rest will be given 30 days later. made specifically for those of you who have not yet had the chance to experience our new rates. 30 worth of balance to those of you who have not used your Jazz connection since March 15th. Rs. Any amount of more than Rs. all our valued customers can text to their hearts’ content! With 3 different packages available for all Jazz users. 75 will be staggered over a period of 2 months i. Jazz.e.Mobilink indigo brings you a brand new. you simply have to recharge and Mobilink would match the recharge amount. 100 Unlimited SMS for 1 month Rs. your connection for life. Jazz Share will not be available to all these subscribers during the promotion period. But that’s not all.

A. being a part of the Microsoft BizTech Server 2002 for the franchises to facilitate the postpaid billing of the customers that is easily updated into the main system via the network. Pco.12 Products /services of Mobilink 26 .Rs. Scratch cards. Vice President of Sales department is Irfan Akram. 15 100 SMS for 7 days 2. S. The owner of the Mobilink is Naguib-Sauurirs.28 November 2008) The Sales Department offers Prepaid/Postpaid connections. It makes use of the ICRM of Mobilink GSM to respond to various customer queries and needs. Black Berry etc . Its customer service includes among many others the:  Change of SIM  Change of ownership  Scratch Cards  GPRS Activation  IR activation  SIM lost  Billing queries/complaints  Incoming/outgoing calls blocked 2.11 History of Sales Department. (Interview withUzair. Sales Department of Mobilink was established in the year1994 as company established in Pakistan.[Note 5]There is also an automated billing system. s.

convenient and enjoyable. This section will walk you through services. The Value Added Services (VAS) Section will familiarize you with the new services you can now benefit from. which will give you all the freedom you need. These include the very basic yet indispensable services like Voice Mail to the more innovative and sophisticated ones like G-Mail. We are continuously adding up to the range of our Value Added Services.Mobilink have two products  Jazz  Indigo  Call and Control Services offered: MOBILINK GSM has always been the market leader when it comes to introducing state-of-the-art communication solutions for its customers. which are not only useful but also cost-effective for both your business as well as personal use. making mobile communications more exciting. all for your convenience. Following are the major services • Caller time identification 27 . We are confident that our innovative and exciting new services will bring about a revolution in the way you look at mobile communications.

9 Million. Type of customers          Major part of corporate sectors Armed forces Business community Govt. organizations Teen agars using JAZZ Students 99% of embassies Shopkeepers Bankers 28 . Number of customers Total numbers of subscribers are about 3.• • • • • • • • • • • • Call waiting Call holding Call forwarding Short messaging services Fax and data services International rooming 0300 single access code News information services Mobilink(GSM)G mail Ansa call Tellular Superior security in billing Major Clients/Customers Mobilink has about 60% market share. The major customers are from jazz package.

Lahore Quetta Sakkur Peshawar Kuhaat Gujranwala Faisalabad Rahim Yar Khan Sadiqabad Murree Hassanabdal Bahawalpur Gujar Khan Sales channels: North South Central 35 franchise outlets 31 franchise outlets 51 franchise outlets No of cell sites Region North South Central Region North South Central 156 298 359 No of switches 2 2 3 29 .Mobilink coverage Mobilink has extended its coverage to major cities of Pakistan including               Islamabad Karachi Hyderabad Rawalpindi Mardan Abbotabad Sialkot Multan Bahawalpur Sheikhpura Gujrat Nowhshera Jhelum And Lahore /Islamabad Motorway.

2. CEO\President Rashid khan Mr. and was responsible for strategic planning commercial operations technology it human resources and corporate governance for the group’s telecom and technology companies.He assumed responsibilities from Dec1st 2008. operations for Orascom telecom in Cairo. A bright and dynamic officer who embraced the problems of the company as a challenge in terms of quality and integrity. Management & Performance.13 Customer services centers Mobilink currently has 10 CS centers all over the Pakistan Organization. He was appointed as new CEO of Mobilink to carry forward the success story of Mobilink . Rashid Khan CEO/president heads Mobilink. CHAPTER 3 Marketing 30 . Prior to this move he was the executive officer.

[Note 6] 3. Etzel. Orascom telecom and Mobilink represent an overall picture similar to that of a strong and aggressive company. Mobilink has a separate brand name for value added services called “Power Tools”.4 Positioning Mobilink has positioned itself as a Premium Image Company. With all the risk it takes. promote.2 Marketing Management at Mobilink The Marketing Strategies at Mobilink are considerably in sync with the contemporary Marketing Strategies in the world today.1 Introduction Marketing is a total system of business activities designed to plan. Marketing 13th Edition. Walker. Prepaid Post paid. 2 Duration: Marketing should start with an idea about a want-satisfying product and should not end until the customers’ wants are completely satisfied. J. There are two significant implications of Marketing. [J. which may be some time after the exchange is make. 3. which caters mostly the upper and upper middle class. price.e. Stanton.3.4 million subscribers of mobile phones. McGrawHill] 3. All mobile phone operators in Pakistan have two basic types of connections i. Out of which 8% are of Post paid and 92% of prepaid connections. which is competing effectively against its global competitors through its competent management.3 Market Analysis. Customer wants must be recognized and satisfied. We have to provide better quality services according to their needs and wants". J. 31 . 1 Focus: The entire system of business activities should be customer-oriented. The belief at Mobilink is that "Our Customers are our valuable assets. and distribute want-satisfying products to target markets in order to achieve organizational objectives. it is well-suited for those investors who are not satisfied with playing it safe. In the industry there are 2.

Secondly budget control.6. 3. 3. This range is basically positioned for PCOs.1 Product/ Services Strategies Vision – 2007 To make indigo the only and best choice of the post paid market 3.1 Products/ Services and Product/ Services Strategies Post paid Connections The reasons for selecting post paid connections have been probed by different researches carried out by Mobilink’s research department that people buy post paid connections mainly to get rid of the card hassle.3. And thirdly incoming calls are free for six months even without outgoing facility. which prefer Post-paid (Indigo) o Social Users. Maintain the current image platform as aspiration to stand out in the clutter. which prefer prepaid connections (Jazz). 3. Adapt a head on and a very aggressive approach towards competitor activities.6. Maintain Leadership 3.2 Overall Objective 1.5 Market Segments Mobilink has two broad market segments: o Business Users. plus to keep a track of the calls made during the month.6 3.2 Prepaid Connections The main benefit which people find in pre paid connections is that there is no hassle of monthly billing. Also with number portability it becomes even more vulnerable. Develop ‘Extreme’ stickiness/retention Indigo base having the highest market share of near to 90% is the most attractive area for new entrants and existing operators.6.3. Competition does not have post paid as an established brand identity and hence the opportunity to capitalize and re-enforce.3 3. Telecom Deregulation Policy: the telecom deregulation Policy has been announced in which the operators will have limited mobility only in the vicinity. Brand Building and Consolidation 2.3.6. The main reason for business users having post paid connections are that the airtime rates are low in case of Post Paid connection.6. while defending their own base through loyalty based schemes 32 .

always connected. Jazz has been able to achieve the aggressive targets via holistic push and pull strategies. Very high end handset as giveaways for top 9% of customers (Indigo Club) 12. The dual strategies for meeting business plan objectives are as follows: • Aggressive acquisition of profitable subscribers • Churn minimization with special attention to retention of high value consumers The above strategy needs to be carried out following the below mentioned principles • Segmentation leading to packages. Jazz has been able to continue with its dynamic growth. New acquisitions: Introduce contracting concepts bundled with handsets of your choice at a walkway cost 13. Package positioning tailored to need state and communicated likewise to the right target market 6. churn prevention tools using our own products and services as the key tools. Dedicated indigo sales teams 10. we have already conducted research and will transform learning into a winning concept for Jazz.6. services • Consumer Relatable Communication In order to do this. the following are the recommended plans 3. Maintaining its leadership position.1 Jazz Thematic We need to create an affinity to Jazz users via a Jazz thematic communication. Despite fierce competition.4 Brand Strategy 2004 to date has been a solid year for Jazz. Quarterly upgrading of Loyalty program: Offers/deals Go International 33 .4. Branded shows and programs with selected channels creating the 360 degrees link 4. To this end. SME related offers 8. 3. followed by quarterly balls/dinners with top end customers in each region.4. Retention programs targeting customers with revised discount policies. 11.6. Explore and capitalize on the business angle for Indigo with a separate positioning and campaign 3. Large scale exclusive show on the lines of LSA to maintain the leadership and imagery platform. Promote cellular devices under the business platform 9.2 Future Strategic Planning 1. The core message is that people everywhere use Jazz and are part of a larger community. Use the VAS platform more aggressively on indigo using GPRS as the main value addition 7. extending it further to involve individual family members expanding the reach 2. 5. Image building campaigns to continue on the same platform.3.6.

the advantage could be short lived. what is needed is a more segmentation based approach. The main advantage Mobilink enjoys here is the on-net advantage.14. Given its 61% market share. In 2005 they have been cautious of driving home this point as this attracts attention to their market size and raises concerns of anti-competitive practices. 34 . Armed with this information. It is important for Mobilink to not resort to across the board cuts that dilute ARPUs. But as the other players start to harp on their prices.e. Laptop cards with GPRS 3. most of the calls made to cellular numbers are to Mobilink – and the most cost effective way of making these calls is to make them from a Mobilink phone. Instead. we will be in a position to tap into exactly such data. pricing will be a key lever. In this overall scenario of a decreasing price trend they will need to offer some measure of price discounts to match the competitive field. The segmentation here will be different from the segmentation used for branding purposes. On the postpaid side they already have such pricing in place – but on the prepaid side this will present a much bigger challenge. pricing changes can be instituted very quickly if needed. divide the consumers based on their usage ad offer them better prices at higher volumes. the following options are being looked at: 1. Night & Weekend packages: Charge special rates for specified days and timeslots Mobilink has fortified itself to some extent in this area by taking the bold decision of removing long distance charges. One prerequisite for implementing such schemes on the prepaid side is the availability of real-time customer usage data. PTA is looking at cost-based interconnects and will be putting pressure on Mobilink to reduce interconnection charges with other players. Step Charging: Charge the caller a lower rate from the second minute onwards 2. Text and voice bundles: Allow users to purchase just the services he needs at the rate and in the quantities that makes sense for him 3. With the availability of the data warehouse early next year.7 Pricing Strategies As mentioned above. This is an area where the competition can move quickly and aggressively. i. they need to start highlighting this effect as they go along. Superior and dedicated CS services / Phone Trainer Concepts/ Customer Accessory education 15. In any case. While coverage will take time to expand and brands will need time to be become established. Tariff per usage: Charge the caller a lower rate once he reaches a certain calling threshold in a month 4. with all sides manoeuvring to various degrees to gain customers with high value products. but more will need to be done. Here the segmentation has to be along the value / interaction framework.

It would expand its distribution network accordingly. Here it looks like central Punjab might well be an area where they try to quickly gain 35 .1 • • 3.8 3. Their distribution networked had been outsourced.8.8.9. • Ufone on the other hand has a limited network service. Central Punjab. Music Platform 7. the most sensible strategy for the new players would be to focus on large city centers and try to achieve a better quality of service before moving to the smaller towns. Member get Member 6. Leadership share of voice in all media 2. College Marathon 3. or they might choose to consolidate one region at a time. • Move channel commissions from purely acquisition to retention model • Encourage channel to move from walk-in sales towards pro-active selling • Increase the role of channel in postpaid • Lock in channel 3.1 Coverage Given the difficulties of site acquisition. especially in the more remote locations. Tier 2 city activities 4.2 Promotion Media Smart Media Buying Increased presence Retention Programs They need to identify our key customers in each segment and design retention plans for each of them. Specific Activities include: 1.9 Distribution • Mobilink believes in an Extensive and Intensive distribution Strategy. Jazz Segmented Rewards program 3. Once they are established in the main cities. Cricket Exploitation 8. Friend & Family 5. e.g. they could try to grow in all regions of the country simultaneously.3. • Zong and Instaphone share their networks.

there is a good chance that PTCL will help Ufone.5 and to reduce Roaming charges. such as Mobilink’s collaboration with Khushalli bank for provision of mobile PCO’s in rural areas.11 Sustaining the Mobile Cellular Growth in Pakistan. Therefore communication needs of a common man are now 36 . during which an industry evolves. Basic telephony and value added services have their own specified markets and the industry life cycle is taking a comparatively steady pace. we must remember the Ufone and Zong are already present in a 81 and 170 cities respectively and will be trying very hard to follow Mobilink throughout the country. is heavily tilted towards mobile.  PTA makes sure that there are same rules for all operators. since investments made in the segment are far higher than any other segment of the industry. Various development stages. 5. as in a normal industry business cycle.PTA (Pakistan Telecom Authority). as a whole.  PTA also deals with interconnect problems between operator. this will enable them to cover more cities faster and also bring them more consumers per site. have either been skipped or bridged quickly for Pakistan telecom industry. Ufone is a subsidiary of PTCL. people are allowed to use mobile phones as PCO’s where no fixed access is available. Provision of access to many of the underserved areas is perhaps the most noticeable benefit of this growth in Pakistan. This growth. But while the job for the new players is mostly uphill. it has become obvious that the impact is positive and evenly distributed to related areas. There are also indications that the new competition is planning to join hands in expanding their networks through infrastructure sharing. Given the population densities and proximities of towns. Similarly proactive initiatives by cellular operators are also bringing positive impact on the social transition. According to a Pakistan Telecom Authority (PTA) decision. PTA makes sure that there is a level playing field in all operators. While measuring the social and economic impact of unprecedented growth in mobile sector.  The government has defined certain parameters within which the operators have to work. It keeps a close eye on performance of cellular industry to safeguard the customers’ rights.10 External Environment Government intervenes in the policies of mobile phone operators through one body. 3. Such as the Airtime charges should not exceed Rs.high coverage. 3. Pakistan’s Cellular Sector has registered tremendous growth during the last three years.

renewal of Instaphone license. Price cuts were made and value added services were offered. Average revenue per subscriber.for the year 2004-05. which is almost 40%of total telecom industry revenues for the same period. 6 mobile operators cover currently more than 350 cities. there has been enormous increase in capacity and coverage through installation of new cell sites. Mobilink. mainly in their network expansion. Total investments made in the mobile sector were more than US$ 882 million which is approx.04 billion minutes. According to estimates. while Telenor and Warid Telecom have recently launched their operations. Correspondingly there has been increase in revenues for the operators. Similarly. has been on a plunge with current Average Revenue per User at US$ 6.satisfied more conveniently than before. Zong. including bundled offers of handset and connection. with highest mobile penetration in Sindh province. There is a record growth in the sector and average subscribers addition each month in the total subscriber base is approximately one million. discounts on purchase of scratch cards through bonus airtime and similar incentives that resulted in growing mobile phone euphoria in the market. Network expansion and increased subscriber base has also boosted government revenues. total traffic generated on mobile networks was 14. rate reductions by mobile operators have resulted in increase in minutes of usage (MOU) per subscriber. 86% of total investments made in the telecom sector. Instaphone and Zong are planning to invest US$ 500 million to US$ 1 billion in Pakistan in the next 2 to 3 years. Mobile subscribers per 100 inhabitants of Pakistan is approaching 10. In addition. 58. The year 2004-05 commenced with intense competition among existing mobile operators. of which Instaphone. As of September 2005. Total revenue earned by mobile operators at the end of year 2004-05 are Rs. Closely analyzing the growth in mobile cellular sector and large un-tapped rural population. including international & domestic incoming and outgoing .1 (Aug-05) showing more than 3 times more penetration than fixed line. Average minute per user per month stands at 155 during the year 2004-05. All this has resulted in massive job creation not only in mobile sector itself but also in ancillary industries. Timely launch of Telenor and Warid. total mobile subscribers stand at 17.4 per hundred inhabitants of Pakistan. Currently there are six mobile operators in Pakistan. which stands at 11%. however.7 million whereas a year ago it was less than 5. 37 . ongoing expansion of Mobilink.03 billion. Decrease in ARPU. mainly. indicating a growth rate of 154% till June 2005. Going in to more sophisticated use of mobile by urban community. total investment made in mobile segment till the end of the year 2004-05 is approximately US$ 880 million. Mobilink each are a decade old and Ufone is aged at four years. is due to decrease in airtime tariff. it is expected that the exponential growth in mobile sector would continue.5 million. access to any information is now in the hands of people where on one hand they are surfing the World Wide Web and on the other hand they have better access to time sensitive information – such as updated stock market quotes. which stands at 3.

public and government. cut throat marketing competition. such as. directing civic bodies to help operators. regulating prices of market leaders. With high roll out. It is estimated that at the end of year 2005. operational costs and regulatory charges (setup. the operators 38 . Provision of basic cellular service in order to maximize profits may be the main objective of all operators. Rapid expansion of mobile networks and unprecedented growth in number of subscribers has resulted in number of issues for the regulator. price wars. To mitigate effects of lower ARPUs and churn rate. data security issues and maintenance of Quality of Services. Keeping the above highlighted issues in mind there is a possibility that this current upbeat in the sector might slow down. the operators. and regular quality of service surveys by regulators and third party assessments for ensuring good quality of services. the new operators would not like to loose the game. Gleaming current figures and magnified future forecasts are supportive of mobile cellular boom in Pakistan. sharing of base stations by operators. tax levied by civic bodies for installation of these cell sites. Similarly current operators also need to keep up with new operators for their competitive edge. These include increased environmental hazard due to large number of cell site towers.privatization of Ufone parent company PTCL. Diagram 3. frequency conflict of operators with radio jamming devices. ensuring possible ways for privacy of operator’s data.1 Pakistan Mobile Forecasts. launch of Zong GSM and reduction in government taxes and handset prices are all right ingredients for best possible growth patterns any mobile sector can desire. the mobile subscriber base would be around 20 million. approval for installation of jamming devices. To address these issues accordingly. licensing etc). appropriate polices are needed to be chalked out.

Similarly.would have to expand to un-served areas since mature markets (metropolitan cities) are already showing highest penetration level. the regulator. business on move (corporate emails access) and vehicle tracking system etc. current boom in the sector can well be sustained. content in local language. location based services. All this would result in a win-win scenario in the long run where consumers would have maximum access in minimum price. Customer Services Department 39 . Besides to continue this growth pattern PTA. providing firm dispute resolution mechanism. and using Access Promotion Charges from this segment for rural telecom development. product differentiation can be an effective tool to increase subscriber base. operators would be able to grow their business and government would benefit from increased tax revenues. easing consumers through proper complaint mechanism. implementation of anticompetitive rules and international quality of service parameters. payment of utility bills via mobile. in addition to current initiatives also stress on areas such as regulating SMP operators. money transfers. This differentiation may be mobile banking facility. Following the right recipe. Finance Department o Credit and collection o Procurement imports o Revenue assurance 2. internet access at low rates. CHAPTER 4 DEPARTMENTALIZATION Major Departments 1.

40 . Internal audit department Main Departmental functions Customer services Operations o To facilitate and guide the customer o To resolve customer’s queries. requests and provide optimal solution in minimum turnaround time. keeping both companies and customer interest in focus.o Customer services operations o Customer services system 3.Technical Department o Switching o Operation / operation support o Logistics o Infrastructure o Systems planning 5. Commercial Department o Marketing o Direct sales o Indirect sales 4. Information Technology Department o Billing o IT 6. Administration and legal affairs department government Relation department 8. Human resources 7.

o Identify and resolve root causes of chum and strive to minimize churn. System o The call center employees help solve the problems of customers on telephone. VAS and products. Marketing o Develop and execute regular promotions o Brand management o Ensure successful new city / product campaign launches o Public relations o International roaming o Value added services o Strategic planning and pricing o Monitor competitor pricing and other activity and report back o Market research o Sales analysis Sales Indirect sales o o o o Manage the franchise network Ensure achievement of sales target of franchise Coordinate with other departments for development programs Training of franchise staff Direct sales o o o o Meet assigned sales targets through out the year Maximize customer satisfaction and minimize churn Generate new accounts and manage old ones Strong follow-up IT /Billing Department 41 .o To inform and update customers about upcoming promos. o To minimize churn and increase revenue.

5 million subscribers in 2004 translates into 650 new sites and expansion into 50 new cities) o Work closely with commercial and IT department to launch new services and cities.g.o o o o o o Networking Operating systems Software development Resource applications Network security Billing Internal Audit Department o o o o Audit internal systems and processes Fraud prevention Introduce control mechanisms Revenue assurance Finance Operations Corporate accounts Bank reconciliation Treasury Budgeting and corporate affairs Credit and collection Procurement and contracts o o o o o o o Technical o Maintain and operate the GSM cellular network consisting of 900 base transceiver sites and 9 mobile switching centers o Plan and roll out network expansion as per the commercial target (e. 42 . 1.

benefits and incentive Administration o o o o o o Office maintenance Travel and accommodation arrangement Stationery requirements Courier services vehicle maintenance Janitorial services Event management 43 .Human resources Employee services o o o o o Payroll information Leave and medical record Final settlements and provident fund Policies and procedures Employees record and recreation OD and effectiveness o o o o o Training plan Talent management Performance management Employees retentation Orientation employee communication Staffing and compensation o o o o o Staffing plan and HR budgeting Management trainee and internship program Interviewing and selection Headhunters Compensation.

o Cafeteria arrangements Performance of the organization Year 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 Dec. 03 Cellular mobile subscribers in Pakistan Instaphone Zong PTML Mobilink 20950 16385 30703 43029 52600 39398 53184 82912 60000 108058 87556 70000 112000 114272 80221 220000 309272 96623 116711 330000 800000 218536 350000 420000 1115000 319400 550000 491011 2015647 333169 555372 Total 68038 135027 196096 265614 306493 742606 1698536 2404400 3395199 Organizational Structure Organ Gram Silk Telecom SILK TELECOM 44 .

Chief Information Officer: Tariq Rashid. Chief Finance Officer: Arshad Saeed. 45 .Managing Director General Manager Manager Senior Finance Officer Senior Customer Relation Officer Senior Admin Officer Finance Officer Finance Officer CR Officer CR Officer Admin Officer Admin Officer Corporate Profile The Corporate hierarchy consists of:    President and CEO: Rashid Khan.

Each of the seven divisions has its Vice President. Strategic Planning Business Development Division Each division has its own operations conducted by its employees and integrated to make a unified whole. which makes it the premier choice the subscribers. Vice President Sales: Irfan Akram Vice President Marketing: Bilal Munir Sheikh Vice President Strategic Planning. with a network of franchises and business centers in the country. Vice President Administration & Human Resources: Ali Raza Mehdi Chief Officer Government & Regulatory Affairs: Agha Qasim. Rashid took over Mobilink on 1st Dec 2008.       Chief Technical Officer: Merius. and the lower Staff. Mobilink has a good infrastructure and the network is established well. Mr. 46 . Since then Mobilink has embarked on an aggressive growth strategy. IT Division 5. 13 November 2007) Administrative structure Mobilink is led by Rashid Khan who is the President and the CEO. (Interview with M. Customer Services Division 6. with a very professional approach and a highly skilled staff. Senior and Junior Officers. Mobilink has seven divisions namely: 1. Business Development & PMO: Amir Ibrahim Head of Customer Services: Mustafa Peracha Mobilink GSM PMCL has its Head Office in Islamabad. Finance Division 4. the Functional Head and Functional Manager. Sales Division 7. Ahmed Khan. HR Division 2. Marketing Division 3. Line Managers.

500 direct employees to serve 15 million customers. It is also delivering the best possible customer service. 9. Bilateral roaming agreements signed with 61 countries around the world to have true roaming service operational in 151 operators of the world. 10.2 Weaknesses 47 . Engineering Departments and CS Contact Center.1. 11. 5. The company Intranet serves as a major competitive advantage. The systems and practices carried out at the organization were fully analyzed to identify the virtues and the shortcomings that may exist in the system deployed. 3. Mobilink GSM has one of the most attractive compensation packages in the entire telecom industry. Mobilink has impressive information flow around the organization. 7. Mobilink is the pioneer cellular service in Pakistan and thus is at the top of the list of Pakistani mobile companies 2. Implementation of a Full Intelligent Network (IN) platform from Siemens for the prepaid platform.CHAPTER 5 Analysis of the Report An attempt to analyze the findings has been made based on the information that was obtained during the internship at Mobilink GSM. Mobilink has good Infrastructure diversity.1 SWOT analysis Strengths 1. reach and the network is established well 4.1. It has only 3. 5. With 30 million subscribers it has the largest market share and its shares are listed on the Egyptian and London stock markets. 6. A SWOT analysis of Mobilink GSM policies and practices has been conducted as follows: 5. 8. The HRIS (Human Resource Information System) is one of the strengths as it eliminates many of the problems associated with keeping a manual record of over 3000 employees and provides convenience to perform HR functions by using the information system. ISO 9002 Quality Management System Certification for Billing.1 5. By integrating its point of sale (POS) and back-end systems using Microsoft BizTalk Server 2002.

Government has reduced the duty on the handsets and now there is open market for handsets that can benefit the cellular companies beyond imagination. There is a single appraisal form for all employees who indicates the traditional way of performance evaluation.1. This emphasizes the need for a rapid network improvement.3 Opportunities 1. 3. as this provides the most lucrative untapped market in the country at present. Cost differentiation between mobile and landline is being changed and mobile is as competitive as the land line. Valuable talent can be attracted with the help of incentives and better salary packages. 4. Inefficient use of the grievance procedures by the employees and reluctance to offend their bosses even under serious cases. with sizeable opportunities in:  Expanding the operations toward the rural areas.1. Latest trend is towards market segmentation by demographics. 5. 2. 4. There exists traffic congestion on the network. New Entrants are emerging on the horizon such as the PTCL wireless. The Declining Mobile Tariffs offer incredible opportunities to exploit for Mobilink. Asynchrony between the standard policies of Mobilink GSM and those of its franchises that can harm the company’s image. For ordinary consumers mobile has become cheaper than ever. and it has driven down the profits of all substitute competing players. and the subscribers frequently get network failure while trying to connect.4 Threats 1.  Product improvement  Bringing in new products 3. Companies face a threat of losing their best employees to the competition who are willing to pay much higher salaries to them compared to what they were getting previously. 5. 48 . Another angle is that mobile to mobile traffic has increased as almost everyone carries a mobile phone now. The helpline proves to be ineffective in solving the subscribers’ problems. 5.1. Brain drain on the HR front. The call rates are some what high in comparison with the market rates. 2. it is important for the evaluation criteria to differ for some jobs or else can give rise to improper evaluation and the loss of valuable talent. 6. 5.

Directors report to the Vice Presidents which report to the CEO. Analysis: Structure Differentiation & Integration Division of labor is high. Despite numerous barriers to entry. The regional managers are free to make decisions but the final authority to approve those decisions or suggestions rests with the top management. a high turn over of skilled human resource can adversely affected Mobilink and serious efforts are needed to arrest this trend. Centralization and Decentralization The authority in Mobilink is overall centralized but the middle and lower level managers are allowed to make important decisions and the employees are provided with a broad framework within which they are free to make their own decisions and take risks.2. Big and stronger companies are entering the market place like Warid and Telenor. Ufone a major competitor with the second largest market share at present is introducing new products and improving services. The span of control is narrow and Horizontal differentiation is medium. 5. lower prices and substantial marketing resources. They work in groups and teams. Standardization And Mutual Adjustment 49 . There is no role ambiguity and no role conflicts. 3. The head of the commercial division has a group of people working under him as an integrating department. as long as they are consistent with the company’s mission and goals. Degree of specialization is also high. The integration level is high. The hierarchy of authority n the sales departments is that: Salesperson reports to sales manager. regional managers report to the VP of their functions. 7. the duties and responsibilities of each employee are vividly defined. Instability of country economy also effects the organization. Organizational roles are properly defined. Market is in the state of flux and in the price war situation between the players to grab and retain the market share. There is high vertical differentiation because of tall hierarchal structure. 6. new firms some times enter industries with high quality products. 4. As a result of the better opportunities abroad. The jobs.

The Standard Operating Procedures are defined in Mobilink but there is a room for mutual adjustment. Further more. Marketing department at Mobilink is one of the main sources of its core competency. so there is mutual adjustment. It is mutually adjusted because of the innovative and flexible environment. and its sales. which even the competitors are not providing. keeps an eye on the market position and informs the IT dept to come up with new features. Mobilink is facing a great competition and for that reason it has to keep track of its competitor’s activities. The Sales and marketing dept. Namely they are: 1) Corporate level strategy 2) Business level strategy 3) Functional level strategy Corporate Level Strategy As their corporate level strategy. Mobilink has a competitive advantage because of its marketing dept. can deviate from the rules only if they are in the benefit of the organization. as they are very clearly defined. its R& D. There is relatively more standardization because most people follow SOP’s. it appears that for the past few years (1999-2003). The employees done have to stick to the rules and at specific times. Mobilink had a focus on internal growth. The IT comes up with new features etc. Marketing and IT dept work in close collaboration to come up with new packages and products. All this is evident from the fact that since the deregulation of the mobile service industry of Pakistan. Organic & Mechanistic Structure Employees at Mobilink work together and coordinate their actions to find the best way of performing tasks. We can observe an element of joint specialization. Analysis: Strategy The findings mentioned in the above chapter reflect three types of major strategies employed by the organization at various levels. The main reason for this change is mainly to keep up with the competition and to retain and 50 . Mobilink has an over-all geographical structure and at regional level it has a functional structure. Mobilink has undertaken various efforts to ensure that it changes its stance from concentrating on its existing market to growing its market presence. The structure of Mobilink is more Organic in Nature. On the basis of our findings. they have entered into partnerships with different organizations.

Caribbean Islands. Milan. 400 in airtime. Bilateral roaming agreements signed with 100 countries around the world to have true roaming service operational in 151 operators of the world. Mobilink took the following steps during the last 2 years: • Expanded its international roaming Service scope in 14 more countries including Vietnam. “LIFE MEIN JAZZ LAO” (a change in the marketing strategy) Indigo packages deliver nation wide cellular freedom at local Call rates Exclusive deals to 6 northern area destination including Chitral. be a part if the FIFA World Cup in Germany or visit Paris. Mobilink’s strategy took a new turn.increase its market share. Nigeria. a JAZZ connection and airtime worth Rs. Malaysia and Maldives “JAZZ-AUR-SUNAO”. Ukraine. Bangladesh. London and NY.100 free airtime. Mobilink’s Nokia 9500 offer MOBILINK-AVIS partnership: Mobilink joined hands with AVIS. Germany. Skardu and Swat. Venezuela. avail amazing offers at the Dubai Shopping Festival. Ethiopia. Foreigners visiting Pakistan using the Mobilink network for cellular services were able to receive a 20% discount on AvisCar rental Service. Uganda. South Africa. Kaghan . The new Jazz customer will also get Rs. •       Joint Promotional Agreements With Various Organizations • • JAZZ-HYUNDAI BUNDLE OFFER: Jazz connection and a latest Hyundai L-120 phone set for only Rs. 200 INTERNATIONAL SUMMER PROMOTION: Discounted international tour packages to Sri Lanka. Iran. PROMOTIONAL CAMPAIGNS LAUNCHED JAZZ BUNDLE OFFERS: These bundles include a handset. Roam the World: year long promotion including travel to the Holy Land in Ramazan. Galliat. To keep abreast with the company. Sudan. Hunza. 2750 Jazz member Get Member: Opportunity for customers to become the brand’s ambassador and at the same time earn Rs. a global brand and the world’s leading car rental company to offer discounted car rental rates (locally as well as internationally) to all Mobilink post-paid customers. Mobilink and UBL launch online bill payment facility for Indigo subscribers 51 • • • . This transition is obvious in Mobilink’s repositioning itself and hitting the market with a new face with the catchphrase “Reshaping communication” With the threat of new entrants into the industry after the deregulation. Bahrain.

Karachi.  International roaming: Bilateral roaming agreements signed with 100 countries around the world to have true roaming service operational in 151 operators of the world.25/min still expensive as compared to AlWarid but giving incentive to subscriber there is an additional cost of RS 25 to add friends and family number. On every purchase the customers would get some free gifts to add more value to their purchase. The kiosk was set up in collaboration with Mobile Zone. They make their product unique through: Advertising  Highly creative people in the marketing dept  Billboards. Exceptional Service 52 . Mobilink has always made successful attempts to distinguish their products or services from other in the industry.Motorola V3 launch Mobilink –CITIBANK Joint Promotion (free INDIGO and Call n Control connections to all Citibank Credit Card members) HandSet Kiosk inside Mobilink Service Centre: a ‘hand-set Kiosk’ set up at Mobilink service centre at Awami Markaz. Business Level Strategy As their business level strategy it has focused on Differentiation strategy ever since it started. bringing in famous personalities from media to endorse their packages Distinctive Product Features    Value added services Online billing GPRS enabled  Mobilink also started 3 friend and family number with a charge of 2. TV commercials. It gave customers the added convenience of purchasing quality hand sets of leading manufacturers such as Nokia.• • • MOB. Samsung or Sony Ericson right from Mobilink Service Centre.

taking into account occasional users to businessmen.  Only cellular service in Pakistan to provide coverage on the M2 motorway. Since it first started its operations. mob offers both postpaid (Indigo. Mobilink offers tariff plans that are exclusively designed to cater to the communication needs of a diverse group of people.bye to AMPS?  GPRS system – fast and inexpensive  MOBILINK GSM's Short Message Service Center allows Vehicle Tracking and Fleet Management services that are being provided by Tracker (Pvt. Tracker currently operates from Karachi but can provide these facilities at all those locations where GSM coverage is available. AlWarid. New Technology  Introduced GSM tech. That is why its rates are higher than its competitors. Low Cost Strategy Mobilink does not follow a low cost strategy. There are certain areas of Pakistan where PTCL connections are not available. but Mobilink has its service in those areas. indigo and blackberry are relatively expansive packages. blackberry is mainly targeted for the business class who can afford it.g. the revenue generation remains high. a company licensed by Pakistan Telecom Authority (PTA).) Ltd. relatively expensive) and the prepaid (JAZZ. which is there to assist the customers 24 hours. In this way. etc. Mobilink is a giant in Pakistani mobile industry Tel. so it can be quite profitable e.. Functional Level Strategy Human Resource Management 53 . Their differentiation strategy is usually targeted at people who are not particularly concerned with price. under the brand name of C-Track. To achieve this objective. Telenor.  Providing services in 413 cities  Best customer service in the cellular market: Biggest Call Center in Pakistan. it has been focusing its products on the upper strata of the society. relatively inexpensive) solutions to their customers. the PTCL cables have not reached yet. Ufone.

• •

Both low cost and differentiation strategy Because they hire highly skilled personnel, train them, develop innovative training programs and have reward system to motivate the employees and in this way control the turnover and absenteeism rate Mobilink has consistent policies and practices in training and developing staff and involving them as ‘partners’ in the business rather than as functionaries whose roles are restricted to obeying instructions.

Sales and Marketing • • Differentiation Advantage: Because they target the customer groups they offer tariff plans that are exclusively designed to cater to the communication needs of a diverse group of people, taking into account occasional users to businessmen. To achieve this objective, they offer both postpaid (Indigo) and the prepaid (JAZZ) solutions to their customers The marketing department immediately identifies and responds to the customer needs Comes up with interesting marketing strategies which include advertising,

• • R&D • •

Differentiation Advantage They keep improving their existing products ( by adding new attractive features to their products such as VAS’s, GPRS, WAP etc)

Analysis: Culture In the past Mobilink was very tight lipped about its policies and SOP’s in the organization. But at present Mobilink have developed a very open and a true corporate culture where informal relationships are given much importance. There is much job satisfaction among the employees, which is due to the measures taken by Mobilink. Company has developed a loyalty for itself by showing more concern towards the needs of the employees. The company has a true corporate and open culture where informal relationship is given much importance. People are very open and interactive. They are honest and when there is something that they cannot disclose they say so instead of beating about the bush. The job satisfaction among the employees is apparent CHAPTER 6 Conclusion and Recommendations


In light of my findings from a Eight weeks internship at Mobilink GSM some conclusions I have drawn are as follows:  Mobilink GSM is the pioneer and one of the most successful cellular companies of Pakistan.  It has a strong market presence and spends heavily on advertising by introducing new innovative ideas to implement that match its products.  The practices being followed especially the Marketing policies are considerably in tune with the modern practices of today with a few exceptions.  There exists a trend of practices being more personality dependent instead of being system dependent, which prevents the employees from following the laid down procedures in fear of offending their superiors.  Fierce competition leads to innovation in industry and when competition does not base on the pricing as is the case with Mobilink then it moves to the maintenance and improvement in quality of services and ultimately on technology improvement.  Attention to some of the most important aspects in the business like Risk Management is inadequate keeping in view the dynamic and rapidly changing competitive environment that is continually bringing in new and strong telecom companies to the front. RECOMMENDATIONS  Mobilink follows a differentiation strategy. If it wants to grow in this market and rise above its competitors, it should also follow low cost strategy through it can reach to more people and comfortably increase its market share. Mobilink has been fined twice by Pakistan telecommunication Authority over its bad service. It must try and emphasize on providing better services to its customers instead on concentrating only on expansion. Mobilink should revise its distribution channel in Pakistan. Different package cards are available at variable prices across the country. There is no consistency in process across the country. It should devise some strategy to deal with this trouble. Further it does not have any promotional offerings that would attract customers. For example, in the previous year, Ufone offered free connections to the masses and Telenor had offered SMS service within its Network in summer 2005. If such 55

measures were implemented, they would increase its brand name and add value to the organization.

 There still remain untapped geographical segments, particularly in rural areas, which can create a significant market.  In saturated markets, if Mobilink GSM wants to avoid simply competing on price, they will have to compete on superior service, innovative features and ease-of-use.  Immediate focus is needed on the quality of service and broader coverage is the ‘name of the game’.  Mobilink must continue to expand its network in areas where there is less competition from Mobile sector.  The key to progress in cellular industry is strategic investment in the network. The current trend of strategic alliances with service operators and content providers should be adopted.  The quality of service standards should be reviewed and updated. Their implementation by service providers and franchises must be monitored and enforced.  The franchises need up gradation; they need to be brought inline with the Mobilink GSM standards across the country so that the customer can feel no difference in service whichever Mobilink office he sets foot in.  The practices that can be identified with Mobilink GSM itself should be made common in all the franchises to the extent possible.  With new savvy competitors in the marketplace competing for the same consumer dollar, Mobilink GSM should remain proactive or be in the position to counteract with better strategies. 6.1.1 Recommendations for Sales department.  Sales department needs to focus more upon its Marketing and sales strategies to obtain the maximum profit.  With the competitor on its heels, it needs to invest in the up gradation of its facility and service to customers.  Employees should be provided with incentives that would motivate them and reduce the high turnover rate.  The benefits packages are negligible and the Sales department can easily lose its workforce to the competitors that offer attractive packages.  Job analysis should be conducted to ensure the right talent is employed and put to work.


and will be very sensitive to lower tariffs. They need to understand the various segments within the Jazz customer base and design promotions around getting the best out of these groups of people. Given the dilemma of already low prices. Women. showing the power of a strong brand in a growing market. segmentation will be one way in which the competition can try to maintain margins while offering low prices on some other packages. Telenor in particular. While Jazz has been successful across the board. While it is already being served as part of the corporate sector. Small and Medium enterprise (SME): This is a major part of the Pakistan’s economy. With increased penetration in semi-rural markets. new cities. it is likely that next year will see the competition bringing out products aimed specifically at different segments. the following are key contenders: 1.e. couple with the opportunity of attacking Mobilink on pricing.  The employees should be appraised regularly and awarded for better performance to increase their level of motivation and commitment to work. Based on this understanding. we need to design specific messages and promotions for the new cities. Students. and lower age groups in general – are another niche where there is great potential for incremental sales with pocket friendly packages positioned to appeal to their needs 4. 2. it is likely to get more direct attention from the competition next year. The hiring procedure should be transparent and a wider pool of applicants should be considered with the help of advertising for vacancies that can help in bringing in a wider set of talent. 57 . This makes targeting the female population – specially the non-working population which forms the bulk and is under-represented in cellular connection ownership 3. With penetration in upper SECs reaching high levels. We need to utilize the potential of the new markets i. they will design services for these customers and communicate them accordingly.  Rules should be established and employees should strictly adhere to the laid down rules regarding regularity and punctuality. Lower Income classes: Most of the growth over next year is expected to be generated from this demographic. with its vast experience is likely to take this approach. All our communication yet has been centered on the urban centers. At the current segmentation levels fresh growth will need to be leveraged from specific segments. They would be helped in this direction by the fact that they will have new systems in place which will allow them more flexibility in tailoring products for specific needs. In terms of the segments they are likely to target. Students. These will be lower ARPU consumers. the key to growth will be multiple connections per household.

Orascom Telecom is a leading mobile telecommunications company operating in seven emerging markets in the Middle East.Notes 1. Africa and South Asia having a population under 58 .

59 .mobilinkgsm. Mobilink re-launched its postpaid services on the 11th of May. The current subscription break up is 80 percent prepaid and 20 percent postpaid. Mobilink GSM also has associations with the world renowned university like Harvard as an effort to invest in the executive development programs. ICRM is an Internet-based Customer Relation Management Software that is protected by a Digital Certificate and SSL (Secure Socket Layer) Protocol. It is only recently that Sialkot. In the In-house recreational sports center. 4. 2. Mobilink GSM employs about 3500 people directly and thousands indirectly through franchises all over the country.php? 9. 6. 7. Personality tests are being contemplated for the senior positions that would help discover the aptitude of the managers towards the job at hand. The Mobilink GSM website URL for online recruitment is http://jobs. 10. with 800 industrial units. 8. 2004 under the brand name. 11. 3. Indigo. the brand was first launched by the name of Mobilink Star.license of 460 million in total population with an average penetration of mobile telephony rate across all markets of 8%. 5. Projects include erecting Mobilink towers in new areas or adding more to area already covered by the Mobilink GSM network. table tennis received attention of some cellular phone companies. employees have been provided with all the latest weight training equipment and heavy machines. swimming pools plus all the indoor games facilities like snooker. establishing call centers or business centers of Mobilink GSM in new geographic regions. Fundamentals of Human Resource [cited December 17. [Online] the free encyclopedia. & Hirt. Organizational Behavior. Inc. Business A Changing World. 18 December 2007. (2006). (2003). G. (2003).References J. 13 November 2007. Stanton. WIKIPEDIA. Ferrell. 2007] Available: PTA (2007). Etzel. 8th ed. 10th ed. 4th ed. Mobilink GSM. 2005 and 2006. Interview with Fawad-ud-din. 2007] Robbins. Audit report 2003. J. About Mobilink. Interview with Uzair. Walker.mobilink.khan@gusest. (2004). [Online] Available: http://www.php?option=com_frontpage&Itemid=1 [cited December 2.C. November 11 2007 Re: Marketing Information’s. DeCenzo.wikipedia. Home-Pakistan Telecommunication Authority.P. S.mobilinkgsm. Mobilink – Wikipedia. McGraw-Hill/Irwin: McGraw Hill Companies. Mobilink GSM. (2006).php [cited December 2. John Wiley & Sons. S. 2004. Interview with Manzoor Ahmed Khan Marketing Specialist Mobilink GSM.P. S. J. D. (shahid. & Robbins. Sales coordinator 28 November 2008. McGraw-Hill. Marketing 13th Edition.pta.A. (2006). 2006] 60 . Singapore: Pearson Education. Shahid Ali Khan. Inc. Customer Relations Officers SALES. [Online] Available: http://en. Islamabad.

Chapter 02 Annexure A Market Shares of Mobile Companies in Pakistan Source: Industry Analysis Report 2005 by Economic Affairs Section Pakistan Telecommunication Authority 61 .

Chapter 02 Annexure B Industry Trends – Mobile Sector Industry Trends – Mobile Sector 35000 No of Cellular Mobile Phone Subscribers (000) No of Mobile Phone Subscribers /100 Inhabitants 25 30000 20 25000 15 (%) 15000 10 10000 5 5000 0 2000 2001 2002 2003 2004f 2005f 2006f 2007f 0 Number (000) 20000 Source: Industry Analysis Report 2004 by Economic Affairs Section Pakistan Telecommunication Authority 62 .

493 2.0 Growth 4.942 200.000.3 Cellular Sub Growth 6.000 1.000 6.0 180.Chapter 02 Annexure C Cellular Subscribers Growth Cellular Subscribers Growth 7.000.0 60.0 160.7 172.556.606 41.000 2.0 'Sep-04 0 1999 2000 2001 2002 2003 Source: Industry Analysis Report 2004 by Economic Affairs Section Pakistan Telecommunication Authority 63 .5 742.0 Number of Subscribers 5.0 35.0 0.000 265.7 140.4 20.400 80.698.404.6 15.536 306.0 120.614 1.000 3.000.0 128.000.000 142.0 100.000.

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