ACE INSTITUTE OF MANAGEMENT

Assignment: Market Analysis

Topic : CG Net

Submitted By: Submitting To:

Aman Shah Hariom Sharma
Bikesh Chaudary Principle of Marketing
Prabhat Chaurasiya
Nabin Yadav
Sambhu Pandit
Mandip Bhusal
 CG NET
CG NET | CG Communications Limited is Nepal’s leading and
the most admired Internet Service Provider company
headquartered in the heart of the capital city, Kathmandu. The
company is powered by Eight(8) plus decades of rich legacy as
Nepal's first multinational conglomerate led by Mr. Binod K
Chaudhary, Chairman – CG Corp Global | Chaudhary Group.
Taking Nepal to the world.

The company operating in the technology, information, and

internet industry has a workforce consisting of 201 to 500
employees. According to the latest report, the company has
successfully acquired over 60,000 clients across various cities in
Nepal.
CG Net's emergence shortly after the lockdown was a response
to the increased demand for internet access during that period.
At the time, major players like Wordlink, Vianet, and NT-Fiber
had established a near monopoly, leaving consumers with
limited options and pricing variations. CG Net disrupted the
market by providing more affordable and faster internet
services with minimal manpower, transforming the networking
landscape in Nepal.

It appears that CG Net implemented a

strategic approach to marketing:

Segmentation: They primarily segmented their customers

based on income and internet spending habits, as well as
geographical areas, focusing on cities where consumers were
more likely to purchase their services.

Target: CG Net's target audience was mainly the youth,

particularly hostel students who were dealing with affordability
issues. To address this, they offered more affordable prices and
faster internet speeds tailored to the needs of this specific
demographic.
Promotion: CG Net promoted their marketing campaign
effectively through social media advertisements, which
generated significant excitement among the youth and allowed
them to effectively reach their intended audience.

Talking about 4ps of marketing that CG net have stragetically

come up with are:

1. Product: It designed a product which is almost similar to the

other communication service provider. CG Net's core product is
internet access, just like other communication service
providers. This includes offering broadband or fiber-optic
internet connections that allow customers to connect to the
internet, browse websites, stream videos, send emails, and
perform various online activities. The core functionality of
internet access is similar across all providers.

Similarity in the product also extends to factors like internet

speed and reliability. CG Net, like its competitors, ensures that
its internet service meets certain speed standards and provides
reliable connectivity. Customers expect a certain level of
performance, and CG Net aims to meet or exceed those
expectations, similar to other providers in the city market.
2. Pricing: As you mentioned, CG Net targeted the youth,
particularly hostel students who were dealing with affordability
issues. By providing internet services at lower prices, CG Net
made high-speed internet access accessible to a demographic
that might have otherwise found it financially challenging to
afford. This resonated strongly with their target audience,
addressing a pain point they faced.

CG Net's competitors were offering similar services but at

higher prices and potentially with speed issues. By offering
better value for money, CG Net gained a competitive edge.
Customers were drawn to CG Net's offerings because they
provided a solution to the common problems faced in the
market, which was affordability without compromising on
internet speed.

CG Net's pricing strategy likely disrupted the market. When a

new entrant offers high-quality services at lower prices, it can
force established players to reevaluate their pricing strategies
and possibly lower their own prices. This can lead to increased
competition and benefits for consumers.

Affordable, high-speed internet is a compelling value

proposition. Customers who experienced CG Net's services and
pricing likely became advocates and spread positive word-of-
mouth. This buzz can have a viral effect, attracting even more
customers who want to take advantage of the value
proposition.
By addressing a genuine need in the market – affordable high-
speed internet – CG Net likely built strong brand loyalty among
its customers. When customers feel that a company is
genuinely looking out for their interests, they are more likely to
remain loyal and recommend the service to others.

While offering lower prices may reduce profit margins initially,

it can lead to long-term growth. As more customers are
attracted to the service, the company can expand its customer
base and potentially introduce additional products or services
to upsell to its loyal clientele.

3. Placement : Launching CG Net primarily in city areas was a

strategic move. Cities typically have higher population densities
and more potential customers. Additionally, urban areas often
have a higher demand for internet services due to the
concentration of businesses, educational institutions, and
residential complexes. This allowed CG Net to tap into a larger
customer base. By targeting the youth demographic, specifically
hostel students, CG Net identified a niche with unique needs.
Students, especially those living in hostels, often require
affordable and reliable internet access for their studies and
entertainment. CG Net's focus on this group allowed them to
tailor their services to meet these specific requirements.
Affordability can be a significant concern in cities, where the
cost of living is often higher. CG Net's strategy of providing
lower-priced internet services addressed the financial
challenges that many urban residents, including students, face.
This made CG Net an attractive option in urban markets where
other providers might have been perceived as expensive.

CG Net's placement strategy effectively addressed a pain point

in the market. They identified the need for affordable high-
speed internet in urban areas and capitalized on it. This
resonated strongly with their target audience, as affordability is
a common concern for many city-dwellers, especially students
living on a tight budget.

By strategically placing themselves in urban areas with a focus

on affordability and high-speed internet, CG Net gained a
competitive advantage. They differentiated themselves from
other providers who might not have been as attentive to the
specific needs of the urban youth. Customers in urban areas,
particularly students, likely became advocates for CG Net's
services. Positive word-of-mouth within city communities can
lead to rapid growth as more people learn about and switch to
CG Net for their internet needs.

4. Promotion: By concentrating their promotional efforts on

social media, CG Net could specifically target students and
young adults who are active users of platforms like Facebook,
Instagram, Tiktok, and others. This ensured that their message
reached the right audience. Compared to traditional advertising
methods, social media marketing can be cost-effective, making
it an attractive choice for startups with limited budgets. CG Net
could allocate their resources efficiently by using social media
platforms to create brand awareness. Social media allows for
immediate engagement with the audience. CG Net could
interact with potential customers, respond to inquiries, and
address concerns in real-time, creating a sense of trust and
reliability.

Social media has the potential to make content go viral. If CG

Net's promotional content resonated with its target audience, it
could quickly gain widespread attention and reach far beyond
their initial follower base. Social media platforms offer valuable
data and analytics tools. CG Net could track the performance of
their promotional campaigns, assess user engagement, and
make data-driven decisions to refine their marketing
strategies.CG Net could build an online community of users and
supporters on social media. This community can serve as brand
advocates and help spread the word about CG Net's services,
contributing to organic growth.

Social media provides a direct channel for customers to provide

feedback, both positive and negative. CG Net could use this
feedback to continuously improve its services and address
customer concerns promptly. If the initial social media
promotion was successful, it likely contributed to CG Net's rapid
growth. As more students and young adults learned about the
affordable and high-speed internet services, they may have
been inclined to switch to CG Net.
 SWOT Analysis

a. Strengths:

1. Strong Branding: CG Net benefits from being a part of the CG

group, which likely gives it a strong and trusted brand image.
This can attract customers looking for reliability and quality in
their internet service providers.

2. Competitive Pricing: Offering competitive and cost-effective

pricing compared to competitors is a significant strength. Lower
prices can be a major selling point, attracting price-sensitive
customers.

3. Word-of-Mouth Marketing: The success of a word-of-mouth

campaign indicates a positive customer experience and
satisfaction. This is a valuable asset as satisfied customers often
become brand advocates, helping to attract new customers
through referrals.
 b. Weaknesses:

1. Limited Geographic Coverage: If CG Net's service is only

available in a limited geographic area, it may struggle to
compete on a national or global scale. Limited coverage can
restrict its customer base.

2. Infrastructure Challenges: If there are infrastructure issues

such as network outages, slow speeds, or technical problems, it
can undermine the reputation and reliability of CG Net's
services.

3. Lack of Manpower: CG Net may face challenges related to a

shortage of skilled manpower. This can impact customer
support, technical assistance, and the ability to expand
operations efficiently. Inadequate staffing can lead to longer
wait times for customer inquiries and slower response to
technical issues.

4. Lack of Branded Television Service: CG Net, while offering

television services, does not brand them as CG TV. This lack of
branding could result in missed opportunities to cross-promote
and upsell services to existing customers. It may also make it
less recognizable in the television service market, potentially
limiting its reach and appeal to potential television customers.

c. Opportunities:
1. Expansion: CG Net can explore opportunities to expand its
geographic coverage to reach more potential customers.
Expanding into new regions or markets can open up new
revenue streams.

2. Market Share Expansion: Despite the challenges, CG Net has

the opportunity to increase its market share significantly by
strategically expanding its services. If the company can
overcome limitations such as lack of manpower and limited
coverage, it can capture untapped markets and gain a
competitive edge.

3. Competition with Industry Giants: While competing with

established industry giants may seem daunting, it also presents
opportunities. CG Net can focus on niche markets or innovative
services to differentiate itself from larger competitors. Offering
specialized services or exceptional customer support can attract
customers who value personalized attention over the scale of a
large corporation.

4. Timing Advantage: If CG Net can provide new products or

services at the right time, it can gain a substantial advantage
over competitors. Being agile and responsive to market
demands, consumer trends, and emerging technologies can
position CG Net as an industry leader.

5. Investment in Technology: Investing in cutting-edge technology

and infrastructure can improve service quality and speed,
 making it more attractive to customers who prioritize high-
speed and reliable internet.

d. Threats:

1. Competition: As In this area, there are indeed opportunities,

but there are also associated challenges and drawbacks. The
telecom industry is highly competitive, and other providers may
also offer competitive pricing and attractive packages. CG Net
must continually innovate and maintain its cost advantage to
stay competitive. There is the potential for falling behind
competitors if the company doesn't develop and implement
effective marketing strategies in a timely manner. The pace at
which they adapt to changing market dynamics and innovate
will be critical in maintaining competitiveness.

2. Regulatory Changes: Changes in regulations or government

policies related to the telecommunications industry can impact
CG Net's operations and profitability.

Competitors:
1. Worldlink: WorldLink is the largest Internet and Network
Service Provider in Nepal and one of the most prominent IT
companies. Founded in September 1995 with the aim of
providing Internet and IT services. The nation's largest ISP, it
has 900,000 active consumer accounts and 2,000 business
accounts, along with approximately 25,000 subscribers to its
NET TV IPTV service, and covers 73 of the nation's 77 districts.
As of 2023, it has around 700,000 fiber to the home customers
and 31% market share in Nepal.

Utilizing the research findings, Project A developed a marketing

strategy that positioned Worldlink as a companion for the Gen
Z demographic. They created campaigns like "3 ko tadka," "Ae
hajur kata," "Ek kaan 2 kaan," and "Internet farara" that
incorporated everyday Nepali lingos, resonating deeply with
the target audience and establishing a strong emotional
connection.

2. Vianet : Vianet is an internet service provider in Nepal.

Vianet is Nepal's third largest internet service providers in
Nepal. The company was founded in 1999. A major ISP, it also
has IP TV service with approximately 145,000 subscribers to its
Via TV IPTV service. Vianet covers 24 cities of the Nepal's 72
districts. As of 2023, it had around 260,000 fiber to the home
customers and 10% of total market share in Nepal.
At the end of 2020, Vianet, one of Nepal’s leading internet
service providers, launched a brand campaign on Tiktok.
Although not a widely used platform by renowned brands,
Tiktok is one of the most popular and frequently used
recreational social media app that has proved to be a
gamechanger in terms of marketing and branding. By using the
platform, Vianet wanted to reach out to its younger audience
without being overbearing.

3. Nepal Telecom (NTC): It has been providing fiber internet

service to its customers and expanding it to more areas. Now,
customers can use unlimited high-speed internet service (up to
100 Mbps), Telephone, and TV service through the FTTH (Fiber
to the home) service. The offers also include voice call rental
and new FTTH combo packs. Plus there is a 1 Gbps fiber
internet with XGPON technology. Ntc unlimited FTTH fiber
internet service, updated price, offers, speed, installation
process, recharge, and more are the packages NT Fiber.
 CG NET'S MARKETING STRATEGY

1. Transparent Pricing through Social Media Marketing: CG

Net recognized a gap in the market where existing internet
service providers had opaque pricing structures and offered
slower internet speeds. In response, CG Net adopted a
transparent approach by showcasing all their package prices on
social media platforms.

2. Competitive Pricing: By offering their internet services at

highly competitive prices, CG Net attracted attention in the
market. This competitive pricing likely piqued the interest of
cost-conscious consumers who were looking for affordable
internet options.

3. Minimal Marketing Required: The straightforward and

affordable pricing strategy may have reduced the need for
extensive marketing efforts beyond social media. Word-of-
mouth and social media marketing alone were sufficient to
create awareness and generate interest among consumers.

4. Market Disruption: While CG Net may not have initially

placed its service as per customer requirements, the pricing
strategy seems to have disrupted the market. It forced
competitors to respond by lowering their prices and improving
their services, which ultimately benefited consumers by
providing faster internet at more reasonable rates.
 In summary, CG Net's marketing strategy was characterized by
transparent pricing, competitive pricing, and a focus on social
media marketing. Although it may not have immediately met all
customer expectations, it had a significant impact on the
market by compelling competitors to lower prices and improve
their services, ultimately benefiting consumers.

The Potential Marketing Campaign Ideas For CG Net.

Let's Break Down Each Idea:
1. "Sasto ra Bharpardo Bhanekai CG NET" (Affordable and
Rewarding CG NET):
 This slogan highlights affordability and value, which can

attract cost-conscious consumers.

 The combination of affordability and rewards suggests that

choosing CG Net not only saves money but also offers

additional benefits or incentives.
 It communicates a clear value proposition to potential

customers.

2. Referral Campaign:
 Referral programs can be highly effective in acquiring new

customers while rewarding existing ones.

  Offering incentives to customers who refer others to CG
Net can help expand the customer base through word-of-
mouth.

3. Emotional Ads:
 Emotional ads can create a strong connection with the

audience, making them feel a personal attachment to the

brand.
 Highlighting relatable stories or experiences can resonate

with viewers on a deeper level and foster loyalty.

4. "Feri Bhetam" (We're Back Again) Campaign:

 This campaign can tap into nostalgia for those who tried

CG Net during its initial launch.

 It emphasizes that CG Net is returning with an improved

and more customer-focused approach.

 The campaign can effectively communicate that CG Net

values its customers and aims to provide better service

this time around.

5. Valuable Content:
 Providing valuable and informative content can position

CG Net as an industry expert and a trusted source of

information.
 Content marketing can help build trust and authority,

attracting and retaining customers.

These marketing campaign ideas align with CG Net's strengths,

such as competitive pricing and a successful word-of-mouth
campaign. They also address some of the weaknesses, like
limited coverage, by focusing on customer engagement and
loyalty.

Implementing a well-rounded marketing strategy that

incorporates these ideas can help CG Net not only regain its
market presence but also strengthen its position in the telecom
industry by attracting and retaining a diverse customer base.

Conclusion:
CG Net, as a sub-company of the CG group, possesses several
notable strengths, including a strong brand reputation,
competitive pricing, and the success of word-of-mouth
marketing. These strengths have laid a solid foundation for the
company to establish itself in the competitive telecom industry.

However, CG Net faces significant challenges, notably the lack

of sufficient manpower and limited geographic coverage. These
weaknesses can impact customer support and hinder expansion
efforts.

On the positive side, there are promising opportunities for CG

Net. The company has the potential to expand its market share
significantly by overcoming its limitations and leveraging its
competitive pricing advantage. It can also compete effectively
with industry giants by focusing on specialized services, timely
product launches, and forming strategic partnerships.
In terms of threats, competition remains a constant challenge
in the telecom sector, requiring CG Net to continually innovate
and manage costs. Regulatory changes and technological
disruptions also pose risks, emphasizing the need for agility and
adaptability. Customer churn due to dissatisfaction or superior
competitor offerings is another potential threat that the
company should address.

CG Net's marketing strategy, characterized by transparent and

competitive pricing, has proven effective in disrupting the
market. It forced competitors to lower their prices and improve
services, ultimately benefiting consumers. This strategy,
combined with word-of-mouth and social media marketing, has
helped create awareness and interest among customers.

In conclusion, CG Net has a strong foundation and significant

growth potential. To succeed in the dynamic telecom industry,
it should address its weaknesses, seize opportunities, and
navigate potential threats with agility. Continuously enhancing
its service offerings and expanding its geographic reach while
maintaining a customer-centric approach will be key to its long-
term success.