Business Plan

of a new cellular
connection!

By:
Fatima Khalid
Product
 A new cellular phone connection
 Brandname:Kingtel
 Kingtel is a cellular connection that provides
voice and data clarity through its GSM (Global
System for Mobile communication) EDGE
(Enhanced Data Rates for Global Evolution)
 It will provide excellent voice clarity and
connectivity in over 414 cities about 7600
destination across the country plus exceptional
coverage on motorways and highways.
 Kingtel introduces voice calls and voice
messaging first time in the country
Services
 Kingtel presents a wide selection of value added
services that ensure you well manage your life
via your mobile phone & express yourself
effectively
 Calls to any network in the country
 International calls
 SMS, MMS, GPRS, voice messaging
 Introducing video calls, and messages
 Fast speed internet
 Objectives :
Business objectives:
 Establishing our brand as a leading cellular

connection in the country.


Company Growth
Financial objectives:
 Increase sales revenue profitably

Marketing objectives:
 Brand recognition

 To increase and maintain market shares

 Target new market and market segment

 To develop new product and improve existing

Why to invest in telecom industry?
 Pakistan telecommunication sector’s performance
in terms of subscription patterns and
infrastructure is unmatched across the world.

 There are 76.6miillion mobile users in the country

that is more than the landline users of 4.8million.

 Government encourages investment in this sector

as 2% GDP (Gross Domestic Product) and 35% of
FDI (Foreign Direct Investment) is contributed by
the telecom sector.
Market Players
 Mobilink : based in Egypt, is a leading market
players has 38% market shares.
 Ufone :a 100% of PTCL enjoying second position in
the market . They have 21% market shares
 Telenor:based at Norway more than double of its
consumers based in period of one year from
Nov’06-Nov’07.they have 20% market shares.
 Warid: is a joint venture between Abu Dhabi Group
& SingTel Group has 14% of the market shares.
 Zong :is a product of china mobile recently
established in Pakistan. had 1.9%maret shares in
2007.and has 3% shares now.
Market Segment:
 Kingtel has offers for all segments of the market
the young and the elders
 Kingtel prepaid is designed for younger
generations it also offers a host of revolutionary
products & features that will forever change the
ways of communication
 Kingtel postpaid is design specially for business
people it keeps up with you, understanding your
drive for victory in the business arena and your
sense of belonging in your personal life
Pricing strategies
We are going to use two pricing strategies :
 Competitive pricing :is when a product is priced

in the line or just below the competitors’ price to

try to capture more of the market .

 Promotional pricing :is when a product is sold

at a very low price for a short period of time.
 Promotion :
Promotion of the product will be done
through a proper campaign which
will include:
 Advertisements on television

 Radio

 Billboards, news papers and internet

 Promotion packages for prepaid
services
Kingtel offers many prepaid packages
 Kingtel MY HOUR: offer that lets you make unlimited calls

to all on-net (kingtel to kingtel) numbers for any one

chosen hour daily.

 King price at night  : call as low as PKR0.6/min to any

network from 1 am till 7 am. Installation charges
PKR100.00
 Woohoo king :offers 25 sms /mms daily , plus free call on
any one kingtel number. 3 video messages daily. Monthly
charges PKR350
 It also offers free sms to all kingtel numbers
 You get 50 min talk time and 100 sms free when
purchasing a new connection.
 Promotion packages for postpaid
services
 Sms packages: free unlimited
messages to any network in Pakistan
monthly charges PKR200
 Whole month internet free .monthly

charges PKR275
 Pay PKR50/month and talk free on

any one number of any network

 Packages for video call and
messages
Kingtel is the only brand offering this
service
 Free Video call on kingtel number

for PKR425/month.
 Free video messages to all kingtel

numbers for PKR220/month

 Kingtel tariff ( all prices are exclusive of sales tax)
To a kingtel To any other
number network in
Pakistan
calls PKR0.1/sec PKR1.2/min
SMS free PKR0.6/sms
MMS/voice PKR1 PKR2
msgs
Internet PKR2/ hour -
Video call PKR5/min PKR8.5/min
Video msg PKR3/msg PKR5/msg
 Organizational Structure

Chief
executive

Human
Marketing Financial Distribution
resource
manager manager manager
manager
 Location;
 Head office; located in Shahra-e-Faisal.
 Regional offices; in every capital city to
control the provincial distribution.
 Outlets; located in various localities across
Pakistan.
 Control station; outside the city preferably
in the HUB industrial area, generator
based as there is scarce electricity.
 How mush to invest?
Expenses: $50,000.
Legal Fees $15,000.
Office $60,000.
Working Capital $100,000.
Miscellaneous $50,000.

Sub-total $225,000.
Product Development: $1500,000
Total $1725,000
Breakeven analysis
 Monthly
Revenue
Break-even:
$41,368
 Assumptions:

 Average
Percent
Assumptions: Variable Cost:
5%
 Estimated
Monthly Fixed
Cost: $39,228
 Break-even Analysis

 The following table and chart reflect the

company's break-even estimates. These are
based on fixed and variable cost estimates
derived from past income statement data. Given
that Web Solutions has little in the way of
marginal costs, the break even analysis reflects
the industry's high gross margins. Unless one of
the potential future risks seriously impacts
profitability, or the company loses its ability to
rapidly adjust to changing market conditions, the
company does not see this as a serious issue.
 Future product:
 After establishment we will sign up major
investment contract for network expansion
 Will introduce mobile TV
 Try providing connectivity in yet undiscovered
areas like Makaland division
 Kingtel will continuously expand network to
address mobile communication for urban rural
population in Pakistan
Question/ Answer.