Marketing Management Assignment

Marketing Plan for Cable Operator

Submitted to:

Mr. Usman Ghani

Submitted By:

Naveed ul Rehman
Rahman Ullah
Abid ur Rehman

INSTITUTE OF MANAGEMENT SCIENCES

UNIVERSAL CABLE TV

HAYATABAD

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UNIVERSAL CABLE TV

Marketing plan

U Universal Cable
Network

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UNIVERSAL CABLE TV

Executive Summary
The goal of this marketing plan is to review the performance of Universal Cable (a
satellite TV channel service provider) and recommend the required changes for further
improvements and expansion. UNIVESAL CABLE is running a successful business in the
Peshawar city area. In future if Universal Cable adopted better polices Universal Cable will be
the only Cable Network & that it would become the market leaders in Peshawar. These policies
include the development of high quality ads for clients, market the organization more effective,
adding new channels, , introduction of fibre optic for transmission of signals, providing Cable
Net facility, polite behaviour with the customers and try to satisfy them etc.
Universal Cable provides a source of information and entertainment through the medium
of the cable. Universal Cable is the answer to an increasing demand. The public wants access to
the methods of entertainment and volumes of information now available on the cable.

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Table of contents
Executive Summary.......................................................................................................4
Introduction:...................................................................................................................6
1. Situation Analysis......................................................................................................8
1.0 Situation Analysis:...............................................................................................8
1.1 Market summary:.................................................................................................8
a) Target Market: ......................................................................................................8
b) Market Needs........................................................................................................9
c) Market Growth....................................................................................................10
2. SWOT ANALYSIS .................................................................................................12
Strengths:.................................................................................................................12
Weaknesses:............................................................................................................14
Opportunities:..........................................................................................................15
Threats: ...................................................................................................................16
3. Competition..............................................................................................................17
Product/Service Offerings......................................................................................17
Keys to Success:.....................................................................................................17
Critical Issues:.........................................................................................................18
4. Marketing Strategy`.................................................................................................19
4.1 Mission statement .............................................................................................19
Marketing Objectives:.............................................................................................19
................................................................................................................................19
4.3 Financial Objectives .........................................................................................19
4.4 Product Positioning ..........................................................................................19
4.5 Strategy ............................................................................................................20
4.6 Marketing Mix ..................................................................................................20
5. Financials, Budgets, and Forecasts..........................................................................22
5.2 Sales Forecast ...................................................................................................23
Expense Forecast ....................................................................................................23
6. Implementation/Controls..........................................................................................24
6.0 Controls ............................................................................................................24
6.1 Marketing Organization ....................................................................................24
6.2 Contingency Planning ......................................................................................24
6.3 Review...............................................................................................................25
References: ..................................................................................................................26
Interviews:....................................................................................................................26

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Introduction:
The fruits of science in the shape of technology, inventions and discoveries have fast transformed our
way of life. One of the foremost symbols of science is the machine. The twentieth century is indeed, a world
of machines. More machines have been invented in the last fifty years than in the entire course of recorded
history. Science and technology have completely transformed our every day life. Whether it is health or
education, industry or transport, communication or entertainment, fashion or domestic comforts, the machine
is every where; thus it is every where to serve humanity.
The Electronic Revolution of the nineteenth and twentieth centuries bought the motion picture, radio
and TV, which joined the print media in spreading information, ideas and providing entertainment. One of the
most distinguishing characteristics of mass communication is that it is mostly one way.
One of the wonders of modern science is that one can see TV programmes of almost all countries on one’s
own TV set. Due to it the whole world has been transformed into global village. Thus from Radio, TV, VCR
& DISH; Media is turned towards “Cable T.V”.

Brief history of Universal Cable:

Universal Cable is a case in point. At start its name was Universal Cable Network formed by three
partners, Imran Nabi Awan, Sohail Ahmad, and Abdul Jalil in September 2000 in Kareem Pura (inside city).
Initially they invested Rs.180, 000 with 5 employees. The employees included 1 Chief Engineer, 2 Sub
Ordinates, 1 Accounts Officer and 1 Peon. Chief Engineer was assigned the responsibilities of installing
equipments and dish allotment. , Maintenance of Signal and Maintenance of Caballing. Responsibilities of
Sub Ordinates were to check complaints, practical work in maintaining of Signals, Practical work in
maintaining Caballing
At Present its name is the same i.e. Universal Cable Network with its logo and the ownership is shared by the
same partners, Imran Nabi Awan, Sohail Ahmad, and Abdul Jalil in Kareem. Now Universal Cable has 20
employees with 5 line men, 5 booster installer, 4 Fee collectors from home, 4CD channel operators; with 2-
day time duty & 2-night time duty and a telephone operator .Monthly Profit is more than 30 thousand
approximately

Requirements for cable net work business

PEMRA Registration:
For starting a Cable Net work business one should be registered with PEMRA. PEMRA means Pakistan
Electronics Media Regulatory Authority, its organization, which requires following things.
NTN Number:
NTN Number means National Tax Number. This Number provides guarantee that one is a Tax Payer of
government.
Employees Record:
An Employee Record must be registered with PEMRA. Government provides licenses for launching new T.V
Stations, radio stations or for new cable net works. For launching new setup
PEMRA requires full record of employees. e.g

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Qualification
Job Experience
If the nature of the job is technical so Technical Experiences is required.

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1. Situation Analysis

1.0 Situation Analysis:

Cable TV service providers are running their business quite successfully. People want good
entertainment and for this they are ready to pay. After the whole day while working in offices etc.
when they come back to their homes, every one likes to sit with their family members and watch the
good programmes. Besides all factors, there’s no doubt that cable is providing a good entertainment
to its clients. Its overall performance is excellent.

1.1 Market summary:

Universal cable TV is faced with the exciting opportunity of being providing excellent services
to its customers. The growing interest in the cable television can produce good results. There are two
competitors in the Kareem Pura area right now, but in Peshawar there are other competitors of
universal cable TV but they can manage it by providing good quality service and clear transmission
of channels.
Today is a world of information and every one wants to know what is going on in the world,
so for this reason every individual wants to have access to as much mediums as he can. Cable TV
service is the best solution for fulfilling this desire by telecasting more than 70 channels. So this
increases demand for cable TV service in the market.

a) Target Market:
Universal Cable intends to cater to people who want access to information and entertainment in an affordable,
reliable and convenient manner.
Universal Cable’s customers can be divided into three groups. The first group is made up of children who are
fond of watching cartoons and other games on different channels. The second group consists of adolescents
who like more entertainment. The third group is that of elders both medium age and seniors. Most of the
seniors are keen to watch talk shows and updated news. It also targets the whole families with various family
channels and also provides religious information on a range of channels.
There are TV channels offering cooking shows, dress designing, beauty tips and other household activities
especially to target female. In fact there is a separate channel named “Masala TV” dedicated to cooking
programs.

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Demographics

Universal Cable target market covers a wide range of ages: 4 to 60 years and the major users are in the age
range of 15 to 40 years. These age ranges include both male and female.
Our primary target markets include:

Students & teenagers: The large student population will become an important part of the
Universal Cable customer base. The student population continues to grow. Non stop entertainment and
access to the information will attract this demographic.

Business people & other professionals: The business community is growing rapidly
with the addition of a new Computer facilities and a flurry of new professional centres. Universal Cable
will provide a perfect setting for business meetings through conferencing. It will also give travelling
business people an opportunity to plug their laptops into the Universal Cable network to check email
communications.

Seniors: Represent a growing population of cable TV viewers. Universal Cable will target the seniors
in the area by offering classic music & movies... This will build a regular base of customers that wouldn't
typically use the services offered by Universal Cable.

b) Market Needs
The rapid growth of the Information technology that has been witnessed worldwide is only the
beginning of a long-lived trend towards an economy built on the infrastructure of the Cable TV. The
potential growth of the cable TV is enormous, to the point where one day, a TV with cable connection will
be as common and necessary as a telephone. This may be 5 or 10 years down the road, but for the next five
years, the cable service provider market is sure to experience tremendous growth. Establishing itself as the
first most affordable cable in the area, Universal Cable will enjoy the first-mover advantages of name
recognition and customer loyalty. Initially, Universal Cable tried to hold a 20 percent share of the cable
service provider market locally. In the next five years, more competitors will enter the market. Universal
Cable has set a goal to consistently maintain a market share of greater than fifty percent.

The popularity of the cable TV channels is growing exponentially. Those who are familiar with the
information superhighway are well aware of how fun and addicting watching cable channels can be. Those
who have not yet experienced the cable TV need a convenient and cost efficient way to learn about and
utilizing the current technologies. Universal Cable seeks to provide its customers with affordable cable TV
access in an innovative and easy manner.
The cable TV has become a point of conversation in almost all social groups. People are talking about
dramas they watched, business people are talking about business review program and expert opinion and the

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update regarding the stock exchange situation, and kids are talking about the latest cartoons and children
programs. People like to communicate their views about the cricket matches and other sports they
experiences with their friends, colleagues and family, which they, otherwise, would not have been able to
watch without cable TV channels.

c) Market Growth
Here is a brief look of the growth in cable market business in Kareem Pura (an area n the main Peshawar
city) and in its vicinity for the last seven years.

Cable Grow th chart

80%

70%

60%
User Percentage

50%

40%

30%

20%

10%

0%
2000 2001 2002 2003 2004 2005 2006 2007 2008
Years

Performance of the Universal cable business:

Universal Cable is running its business quite successfully. At start Universal cable was telecasting 16
T.V channels after 1 year its T.V channels were 35 and now Universal cable T.V is giving 70 plus

channels. Universal cable T.V is the First Cable operator in Peshawar city. Universal cable
operator started their business in Kareem Pura Peshawar city, in year 2000.at the beginning of the
business total employees were 5. At start like every new product cable also took time to gain public
attention.

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With the help of the pie – Chart the ratio of the users of Universal cable T.V is given below.
In the year 2000 the usage of cable was only 3%., in year 2001 it was 8%., in year 2002 the ratio of the
users was 12%., in year 2003 the ratio of the users automatically jumped to 28%. This sudden change in the
business was very successful for them and from inside city the business boosted up and expanded to Lahori,
Ganj, meena bazaar etc
Universal Cable market ratio percentage

50%
45% 46%
42%
40%
35% 36%
Market ratio

30%
28%
25%
20% 20%
15%
12%
10%
8%
5%
3%
0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Years

In year 2004 the business of cable was in boom period. Public was getting a very good entertainment and
everyone was ready to pay what ever were the charges. Thus cable operators exceeded their charges from Rs
150/- to Rs. 250/-. In year 2005 after the extension of the business of cable the ratio of its users was increased
from 38 % to 45%. In year 2006 it extended its network and captured almost 42% of the cable market. AND
NOW approximately in some areas of inside city there is all over Universal cable.

Cable Market Analysis

Universal Cable ratio

46%
Others
56%

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2. SWOT ANALYSIS
The SWOT analysis is used as the base line for future improvement. The best strategy is one that fits
organization's strengths to opportunities in the environment. Comparing the organization to external
benchmarks is used to assess current capabilities. Benchmarking systematically compares performance
measures such as efficiency, effectiveness or outcomes of an organization. Benchmarking with other
organizations can help identify a gap. Gap analysis identifies the progress required to move the organization
from its current capabilities to its desired future state. In this way, the organization can adapt to the best
practices to improve organizational performance.

SWOT

Strengths Weaknesses Opportunities Threats

SWOT ANALYSIS OF CABLE TV NETWORKS:

Over all cable has its influence on 70% population of Peshawar. This influence has effected
population of Peshawar in both ways positively & negatively.

Strengths:

Positive Aspects:

1. Awareness
The culture of Peshawar is different from other cities of Pakistan as compared to Karachi, Lahore &
Islamabad. T.V Cable networks have a very big hand in changing the minds of people in Peshawar.
Awareness has given a new look in them. People attitude have been changed a lot towards their life
style. Now a days one is conscious for home decorations, furniture style etc. Every one cares that
what is in and what is out of fashion. One tries his best to remain in touch with society. People like to

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watch Programmes about fashion, beauty tips and home decorations etc. Different cooking
programmes are not only watched by house hold ladies even such food items are practiced in homes
and have added new tastes to their dinning tables.
2. Employment
In T.V Cable networks people especially belonging from Middle and lower class have got jobs.
Almost there are approximately 15 setups of T.V Cable operators. They all require “peon”, “office
boys / men for keeping records of payments, permanent electricians for proper cabling etc. In a
developing country like Pakistan such jobs for Middle and lower class are quite enough to maintain
that families.
3. Entertainment, Information & learning
A T.V Cable network operates many channels of the world in one time. One can see so many
channels around the world or get information at one time. The Cable provides 24 hours Entertainment
to their clients. One can’t get bored while sitting in front of TV Cable. GEO & ARY give full updates
of news from all over the world. QTV plays informatics programmes about Islam. National
geographic tells information about animals etc. There is a separate channel for Sports Lovers. In spite
of this other Cable programmes are about fashion, beauty tips, home decorations, cooking etc. Thus
TV cable not only provides Entertainment & Information but one can learn a lot from Cable T.V
channels.
4. More channels than dish:
Once there was an era that dish antenna was very popular. These antennas were appeared like
mushrooms on houses tops in Pakistan 4 or 5 years back. But one dish antenna was not having the
capacity to show all the channels in one time. One has to keep 2 “LLB’s” or decoder to turn the
location of dish for other channels. But cable T.V has finished such tension and has together all the
channels. At start cable T.V channels were 16 after 1 year cable T.V channels were 35 and now cable
T.V channels are 70 plus.

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Weaknesses:
Lack of Family Channels & Vulgarity:
The trend of family channels has been gradually finished from T.V Cable networks. The channels
telecasted by cable networks are only left with vulgarity instead of providing family entertainments.
Head of the family is unable to watch T.V programmes while sitting with his own family members
because of vulgar programmes.
Effect on national language
Indian channels programmes, dramas, movies etc telecasted by cable networks has affected a lot on
our national language. Younger feel proud while using Hindi words in their conversation. e.g. Widwa
for widow, karaab for bad, chamatkar for wonder, Jeejajee for brother in law, Sasoo maah for
mother in law, shagoon for good events, etc
Influence of Western Trend:
Asian culture and trend is influenced by Western culture. Whatever People see they try to adopt
whether they look good or bad. Thus western culture is influencing our society a lot.
Effect on Respect of Elders
The respect, which is required in every relationship, is gradually finishing from our youth. The
desired respect of every elder which is due on youth is finished from their hearts. Including their
parents, teacher’s etc. youngsters have been grown up before the time. Mostly they misbehave, shout
and feel irritated from advices. Commonly they disobey elders and don’t feel ashamed. Their
precious time of study is passed while watching “Star Plus” which is most important to them rather
completing their home works.
Advertisements
Advertisements on Cable TV of Local brands and services don’t meet the international standards.
Cable operators for their earnings run ads in even Rs. 1000/- these types of ads give poor impression
and it neither guides nor motivates consumers. Most of Ads of don’t give full information about the
products. For instance the advertisement of new Khushi jewellers is third class with the poor
performance of the performers.

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Less information
Due to CD channels of cable network we get less information of international products. Because the
advertisements of international products are replaced with local products ads.
Non co-operational attitude of cable network operators
The cable network operators have no coordination with each other. Within one city their policies
differ from one another. E.g. in city if there is ban on “English Channels” in Cantt the same channel
is working on. This shows lack of understanding and non co-operational attitude of cable network
operators among themselves.
Poor office Location
One and the main important weakness of the universal cable network is that their office location is
not good. It’s in side city, in a street. Their sub office can be maintained inside city but their Main
office should be located at such a place, which is accessible to all. It should be outside the street on
front or across the road.
Weak marketing
Another important weakness of the business is their marketing is poor. They are dealing with
numerous customers in inside city but if they have managed it properly they can attract more
customers too.

Opportunities:
Location:
UNIVERSAL Cable TV should change their location from inside city. For having more growth they
have to change their location. As they have extended their business so they must have one main
office and 02 branch offices in inside city.
Magic boxes
Second opportunity is that in spite of providing entertainment they should sell magic boxes. Magic
box is like a decoder, which gives more TV channels.

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Selling Wire
The Other opportunity for this business is that they should sell wire (cable) with their own brand
name. This will increase their sales. And will become a new source of marketing.
New Channels
More over they can buy new channels of different countries other than India, U.K, & DUBAI etc this
will also increase the demand of “Universal Cable T.V”

Threats:
• Cable network can be operated without cables/ wires into homes with the help of optic fibres.
If in Peshawar any cable network operator adopted this opportunity the business of universal
cable operators will be affected. Because its signal quality is more than cables/ wires.
• A Mobile Company “Warid Tele Com” is starting its new project “Al-Wateen” in this project
they are also working on optic fibres and if they started their setup, this will affect the business
of universal cable operators too.
• PTCL in next five years is interested to give such telephone lines which will be underground
and not only it will be a phone line it will also provide cable TV & Internet Cable in homes.
This is also a threat for universal cable.
• The MMA Government policies are totally against Cable TV.
• The current situation of the bomb blasts aiming CD Houses, Net café etc. is also a major threat
for cable operators

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3. Competition
The service nature of Universal Cable business faces competition with other cable service providers. There
are a total of 11 cable service providers in the Peshawar. OK cable network, Afridi cable network, MZ cable
in near future a tough competition is expected because these brands will retaliate.

Product/Service Offerings
Basically Universal cable offers service in the form of 70 plus cable TV channels. In the near future Universal
Cable is looking for making Cable Net available through the existing cables (wires). The TV channels include
Pakistani, Regional and, of course, International TV channels. Here is a list of channels the Universal Cable
offers:

I. Pakistani TV Channels:

a) The Pakistani TV channels include the state run PTV family, which includes PTV HOME,
PTV NEWS, and PTV National. All these channels are terrestrial along with ATV.
b) The second category of Pakistan TV channels includes satellite (non terrestrial) private
channels. The notables of these channels are:
For News:
Geo News, ARY One World, Aaj TV, Indus News, KTN etc.
For Entertainment:
Geo entertainment, Aag, ARY Digital, Indus vision, Indus Music, HUM, Rung, Royal, AVT
Khyber, Filmazia, Masala, ARY shopping channel etc
QTV, Haq TV are religious TV channel while Geo Super is a sports channel.

c) Apart from the full operated licensed channels, Universal Cable also operates its own CD
channels which are customizable to the needs of the market.

II. Non Pakistani TV channels:

These are all satellite TV channel which include mainly Indian and English channels.
These include BBC World, BBC Prime, BBC Food, CNN, DW, Bloomberg, Discovery, National
Geographic, Reality TV, Star Movies, Star World, AXN, HBO, MTV, Hallmark, Saudi National TV,
Star sports, Star Cricket, ESPN, Ten sports, Super sports,
The Indian TV channels include Star Plus, Star Gold, Zee TV net work, Aajtak, B4U, Sahar, Sony, ETV
and Afghani channels like RTV, Tuloo, etc.

Keys to Success:
• Universal Cable has given customer a choice to select from a variety of channels
• Designing and producing offers that meet mark demand, thus ensuring total customer satisfaction.

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• The UPS (Uninterrupted Power supply System) to operate even when there is no light
• The provision in Universal Cable for education and entertainment.
• The Cable provides 24 hours Entertainment to their clients
• Clearer TV picture
• Can have access to the latest information round the clock by tuning into the News channels
• Provides religious education from renowned scholars while you are at home like Peace TV, QTV, Haq
TV etc.
• No additional or hidden charges, just Rs. 250 per month and enjoy the
• More channels than dish and no headache of moving the antenna (umbrella)

Critical Issues:
The risks involved for Universal Cable are:
• Will there be a continuing demand for the services offered by Universal Cable?
• Will the popularity of the cable continue to grow, or is the cable TV a trend?
• Will individuals be willing to pay for the services Universal Cable offers?
• Will the cost of accessing the cable TV channels drop so significantly that there will not be a market
for cable Service Providers such as Universal Cable?
• So Universal Cable should look for controlled growth to help protect itself against recession.
• Should constantly monitor customer satisfaction, ensuring that the growth strategy will never
compromise service and satisfaction levels.

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4. Marketing Strategy`
4.1 Mission statement
The mission of universal cable is that it would become the only best cable operator in Peshawar and if
it’s difficult to cover the whole Peshawar so all city side will be managed by Universal Cable Network
only by providing customers with quality service and non stop entertainment & information...

Marketing Objectives:
“Our objective is to strengthen our business and reputation, so that it should be trusted where ever
Universal Cable is watched”.

Universal Cable marketing will consistently build on this mission. Everything Universal Cable does,
from the pricing structure for its services to the satisfaction it provides, must be done with this mission
in mind. Universal Cable caters to: a variety of people as its customers. Its policies and services are
designed for this clientele and Universal Cable’s marketing efforts are focused on capturing this
market.
Universal Cable believes that the consumer is ultimately the boss, and one can be successful only if it
is active in their life, and responsive in their issues, or any complaints by them.

4.3 Financial Objectives

To build a profitable business that’s sustainable into the future and expanding into new markets.
The vision outlined in the business plan includes sales of roughly Rs 1,284,000 in the year 2007 with
that figure increasing 7% annually.
Universal Cable should strive to minimize its cost in face of competition.

4.4 Product Positioning

Universal Cable is positioned at providing high quality non stop information and entertainment at
affordable price.
The basic purpose, of the business, is to serve consumers in a unique and effective way. Universal
cable should give such programmes or telecast such channels through which one should love his own
country and his own local culture. This will give build a strong relationship with those who hate cable.
Such programmes could also help and guide our youth to remain them on right path. This will provide
a foundation or a positive path way for their future growth. And will lesser their threats.
.

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4.5 Strategy

The following are the two key strategies Universal Cable will focus on:

Universal Cable’s first strategy focuses on attracting new customers. Universal Cable plans on attracting these
customers by:
• Advertising in print & electronic media the positive uses
• By wet sampling

Universal Cable's second strategy will be focused on retaining existing users. Universal Cable plans on
retaining this type of customer by:
• Providing extra channels.
• Providing high quality service through maintenance of signals and transmission lines
• Providing special discounts to heavy users i.e. many connections in the same house.
• A call centre to receive and responds to complaints by customers
• This will help retain customers that would normally think about using another Cable provider.

4.6 Marketing Mix

Universal Cable’s marketing efforts will focus on building a loyal base of customers that will use the services
provided on daily basis.

A). Pricing
Determining a fair market, monthly price for the service is more difficult because there is direct
competition from other Cable Networks in this area. Therefore, Universal Cable considered two sources to
determine the monthly charges. First, we considered the price charged by our competitor.

Secondly Universal Cable determined its cost and set a price (Cost-plus pricing) that would result in
optimal profit after covering the fixed and variable costs. So Universal Cable has arrived at the monthly
price of Rs. 250 per month.
The customers at the time of subscription pay a registration fee of Rs. 1000 and the monthly fee of Rs. 250
is billed and the fee is collecting after two days by the Universal Cable employees.

b). Promotion

Universal Cable will spend almost Rs. 18,000 for year 2007, to build a brand and a loyal customer base.
Marketing efforts will be focused on the local market, and the campaign will run the entirety of 2007,
increasing roughly 10% per year to match increased sales revenue. The marketing budget will consistently
equal almost 10% of sales.

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A Few Specific Marketing Efforts: Advertisements in:

• Print Materials
• Local Newspapers
• Billboards, posters & leaflets etc.
c). Product/Service
This topic is a critical reminder of the fact that Universal Cable is a service business. The success of our
business depends upon the quality of the service we offer and delivering that service consistently.
Universal Cable is dedicated to delivering this quality service
.
Product Features
Universal Cable is offering satellite TV channels.
Universal Cable is heading delivering the most consistent cable service to its users through easy to use
eliminating the worry to renew card subscription or moving antenna.

Universal Cable Service features are:

1. Higher picture Quality than dish antenna
2. No card renewals
3. More than 70 channels
4. Reliable service
5. Efficient complaint system and troubleshooting
6. On demand movies and songs
7. Advertising service making attractive ads & planning to hire best professional in the near future

d). Placement (Distribution)

Universal Cable service is made available through transmission lines. So it can target the thickly
populated city area in and around Kareem Pura by spreading a network of cables (wires).
Supply to all these points will be provided through our 2 line men. Universal Cable will try to provide
connection to each and every house in the vicinity on subscription within one day.

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5. Financials, Budgets, and Forecasts

The marketing plan is built on these truths:

1. Building a strong brand and brand loyalty is critical to the success of Universal Cable so the marketing
budget will increased annually. .
2. The relationship between marketing expenditure and revenues generated is positive only to a certain
point. Universal Cable owner doesn't feel that a marketing budget is close to that point where
additional marketing expenditure won't create additional revenue. If he can manage, he plans to spend
more than 10% of sales on marketing in future years. However, he wants to keep this relationship in
mind as he considers spending more on marketing efforts.
3. Universal Cable understanding of the need for strong branding and emphasis on marketing gives it a
competitive edge over current cable networks in our area and potential competitors.
4. The following is the result of operation of the business for the August 2007.

Universal Cable
Income Statement
For the month ended Aug 2007

Revenue:
Revenue from subscription Rs.95000
Revenue from ads 12000 Rs.107000

Expenses:
Salaries expense 48000
Rent expense 4000
Depreciation expense: Decoder, CD ROMs, comp 1400
Maintenance 2000
CDs expense 750
Cable Wire expense 1500
Telephone expense 1000
Electricity expense 5000
Advertising expense 1500
PEMRA license expense 400
Taxes 3450 69000

Net Income Rs.38000

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5.2 Sales Forecast

The cable industry in Peshawar is growing at an average rate of 9%. As for Universal Cable is
concerned, it is growing at an average rate of 6%.Currently the Universal Cable sales are worth Rs.
107,000 per month or Rs. 1,284,000 per year roughly. So if the same growth rate continued the
following sales can be forecasted.

Universal Cable Sales forecast

Year 2007 2008 2009

Sales in PKR 1,284,000 1,36,1040 1,442,702
Probable growth 6% 6% 6%

Expense Forecast
The cable industry in Peshawar is growing at an average rate of 9%. So new competitors will arise and to
compete them Universal Cable has to hire more competent workforce and latest machinery. If fibre optic
is introduced by any competitor then it will become inevitable for Universal Cable to replace the existing
cable wires with fibre optics, which will increase the expenses considerably. But till 2008, there seems no
formidable competitor to launch fibre optic, that’s why the expense growth rate is only 3 & 4 percent.
However, its introduction cannot be neglected in the near future that’s why the expense growth rate is
predicted 10%. Currently the Universal Cable expenses are worth Rs. 69,000 per month or Rs. 1,284,000
per year roughly. So if the same growth rate continued the following sales can be forecasted.

Universal Cable Expense forecast

Year 2007 2008 2009

Expenses in PKR 828,000 852,840 886,954
Probable growth 3% 4% 10%

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6. Implementation/Controls

6.0 Controls
Comparing the actual performance with the planned activities and taking corrective actions is an effective way
of control.

The following areas will be monitored to measure performance:

• Revenue: monthly and annually
• Expenses:
• Customer satisfaction
• New offers

6.1 Marketing Organization

As a small organization Universal Cable doesn’t have any separate marketing department. So the Ads
designer along with one of the booster installer employee will be responsible for the marketing activities.

6.2 Contingency Planning

This marketing plan is just that, a plan. Plans don't always work out and we have to be ready to deal with the
likelihood that Universal Cable won't make good on the projections outlined in this plan. We also have to
prepare ourselves for overwhelming success.

The following are some possible scenarios:

Revenues exceed projections - A serious increase in revenues over projections will give us an
opportunity to increase our marketing budget above the allocated 10%. We'll be able to hire the marketing
designer to develop quality advertisements both for the marketing of the Universal Cable and commercial, and
we'll be able to provide more equipment and possibly add an additional location.

Revenues miss projections - We have to be prepared for this possibility. If we miss our
projections, we simply have to re-double our marketing efforts. The danger in this scenario is that the first
reaction to missed projections is to decrease spending, particularly marketing expenses. We can't do that! We
have to get our message out to the target market, and we can't do that if we stop spending on marketing.
Additional capital infusions may become necessary and that possibility is detailed in the business plan.

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Difficulties and risks:

• Problems of generating visibility, a function of being an cable for a relatively less experienced
organization
• An entry into the market by an already established market competitor.

Worst case Risks include:

• Determining that the business cannot support itself on an ongoing basis
• Having to liquidate equipment to cover liabilities.

Decrease in price due to advancement in technology:- Our customers might not be

willing to pay cable TV as satellite TV access costs continue to fall. If this scenario materializes, we'd just
have to charge less and move our numbers around to accommodate this trend.

6.3 Review
Universal Cable holders are running their business quite effectively. People want good entertainment
and for this they are ready to pay

To become a market leader they should have to focus on the following areas:

• To be a unique cable operator, Universal Cable holders should telecast requested programmes.
E.g. if they receive a phone call for any especial programme on CD Channels they should
telecast that for their clients as “Special Request Programme”

• For expansion of business they should plan that in which new areas they can provide their
services easily and could easily registered the areas with PEMRA by facing tough competition.

• Cable wire should be converted into fiber optic technology. By adopting such technology they
will get more market shares because the signals of fiber optic are perfect with minimum
chances that they will drop...
• The Universal cable TV can also provide Internet Cable facility to its clients along with Cable
TV. This is also an attractive suggestion for expansion of the Cable business

The affect of changes can be measured in such a way that business will grow overall, it will increase
its costs but it will make it near to its future goal & objectives of becoming market leader with getting
more profits and with its well reputation.

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References:
Interviews:
Owner of Universal Cable TV: Mr. Imran Nabi Awan & his Senior Assistant Mr. Nauman Waris were
personally interviewed.

Websites:
http://www.mplans.com
http://morebusiness.com
and various others

Books:
Marketing management by Philip Kotler & Kevin lane Keller
Principles of Marketing by Armstrong & Kotler

The Essence of Small Business

Series Editor: Adrian Buckley by Colin Barrow

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