Department: Management Sciences

Research Report on

HOW ZONG HANDLE 4 Ps OF MARKETING EFFECTIVELY

Refers to:

Sir Muzamil Aftab Qureshi.

Date of submission: 30 Nov-2012

From:

Sadia Rizwan Baig(01)

BBA (HONS) FALL# 03

HANDLING 4 PS EFFECTIVELY MARKETING MIX (DEFINITON) It comprise of 4 pillars: 1 Product 2 Price 3 Place 4 Promotions

PRODUCT
A product is seen as an item that satisfies what a consumer needs or wants. It is a tangible good or an intangible service. Intangible products are service based like the tourism industry, the hotel industry and the financial industry. Tangible products are those that have an independent physical existence. Typical examples of massproduced, tangible objects are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system.

PRICE
The price is the amount a customer pays for the product. The price is very important as it determines the company's profit and hence, survival. Adjusting the price has a profound impact on the marketing strategy, and depending on the price elasticity of the product, often it will affect the demand and sales as well. The marketer should set a price that complements the other elements of the marketing mix.

PLACE
A practice involving the application of regions and countries e.t.c. branding and sales strategies to different

PROMOTION
represents all of the methods of communication that a marketer may use to provide information to different parties about the product. Promotion comprises elements such as: advertising, public relations, personal selling and sales promotion

MARKETING MIX MODEL TO HANDLE 4 Ps Marketing mix modeling is an analytical approach that uses historic information, such as syndicated point-of-sale data and companies internal data, to quantify the sales impact of various marketing activities. Mathematically, this is done by establishing a simultaneous relation of various marketing activities with the sales, in the form of a linear or a non-linear equation, through the statistical technique of regression. MMM defines the effectiveness of each of the marketing elements in terms of its contribution to sales-volume, effectiveness (volume generated by each unit of effort), efficiency (sales volume generated divided by cost) and ROI. These learnings are then adopted to adjust marketing tactics and strategies, optimize the marketing plan and also to forecast sales while simulating various scenarios. This is accomplished by setting up a model with the sales volume/value as the dependent variable and independent variables created out of the various marketing efforts. The creation of variables for Marketing Mix Modeling is a complicated affair and is as much an art as it is a science. Once the variables are created, multiple iterations are carried out to create a model which explains the volume/value trends well. Further validations are carried out, either by using a validation data, or by the consistency of the business results. The output can be used to analyze the impact of the marketing elements on various dimensions. The contribution of each element as a percentage of the total plotted year on year is a good indicator of how the effectiveness of various elements changes over the years. The yearly change in contribution is also measure by a dueto analysis which shows what percentage of the change in total sales is attributable to each of the elements. For activities like television advertising and trade promotions, more sophisticated analysis like effectiveness can be carried out. This analysis tells the marketing manager the incremental gain in sales that can be obtained by increasing the respective marketing element by one unit. If detailed spend information per activity is available then it is possible to calculate the Return on Investment of the marketing activity. Not only is this useful for reporting the historical effectiveness of the activity, it also helps in optimizing the marketing budget by identifying the most and least efficient marketing activities. Once the final model is ready, the results from it can be used to simulate marketing scenarios for a What-if analysis. The marketing manager can reallocate this marketing budget in different proportions and see the direct impact on sales/value. He can optimize the budget by allocating spends to those activities which give the highest return on investment.

Handling Price
Pricing Price increases of the brand impacts the sales negatively. This effect can be captured through modeling the price in MMM. The model provides the price elasticity of the brand which tells us the percentage change in the sales for each percentage change in price. Using this, the marketing manager can evaluate the impact of a price change decision. Distribution For the element of distribution, we can know how the volume will move by changing distribution efforts or, in other words, by each percentage shift in the width or the depth of distribution. This can be identified specifically for each channel and even for each kind of outlet for off-take sales. In view of these insights, the distribution efforts can be prioritized for each channel or store-type to get the maximum out of the same. A recent study of a laundry brand showed that the incremental volume through 1% more presence in a neighborhood Kirana store is 180% greater than that through 1% more presence in a supermarket. Based upon the cost of such efforts, managers identified the right channel to invest more for distribution. Launches When a new product is launched, the associated publicity and promotions typically results in higher volume generation than expected. This extra volume cannot be completely captured in the model using the existing variables. Often special variables to capture this incremental effect of launches are used. The combined contribution of these variables and that of the marketing effort associated with the launch will give the total launch contribution. Different launches can be compared by calculating their effectiveness and ROI. Competition The impact of competition on the brand sales is captured by creating the competition variables accordingly. The variables are created from the marketing activities of the competition like television advertising, trade promotions, product launches etc. The results from the model can be used to identify the biggest threat to own brand sales from competition. The cross-price elasticity and the cross-promotional elasticity can be used to devise appropriate response to competition tactics. A successful competitive campaign can be analyzed to learn valuable lesson for the own brand.

INTRODUCTION of ZONG
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CMPAK(China mobile Ltd China mobile (PAK)is a 100% subsidiary of China mobile. The pioneering overseers setup of China Mobile came through acquisition of license from Milicom to operate a GSM network in Pak.So far CMPAK has invested more than US $ 800 million in the telecom sector in Pak and an additional 700 US $ till the end of year 2008. CMPak edge comes from the experience and expertise of running the world largest telecom service and the commitment they make setting to quality and customer relation standards .CMPak is geared to offer neatly packaged VAS products that will benefit the individual ,corporatisms well as small businesses led by team of professionals from the field of cellular communication.

ZONG ZONG is the first international brand of China Mobile, launched in Pakistan in 2008. The company is often cited as China Mobile (Pakistan) or CMPak. As of late 2011, it had a subscriber base of 13.2 million. The core essence of Zong is to allow people to communicate at will- without worrying about tariffs ,network coverage ,capacity issues or congestion. Zong will be supported by ground breaking communication, trend setting customer service and matched product offering which will redefine rules of the game and establish ZONG as a serious contender for the number one spot. VISION With perfect sincerity and integrity we will strive to fulfill their triple sided responsibilities ;their economic responsibility; their social responsibility and their environmental responsibility MISSION Communicate a boundless world and construct an information society.

GOALS AND OBJECTIVES COVERAGE---------at affordable price CONVINEANCE----at affordable price CONNECTIVITY----at affordable price STATISTICS ABOUT ZONG

MARKET

SHARE

OF

ZONG

IN

FEB

2012

RESEARCH METHODOLOGY
a) QUALITATIVE ELEMENT I had a focused conversation with two subjects of this report and had a brief conservation about the marketing strategy and sales and distribution channels of Zong. QUANTITATIVE ELEMENT Quantitative element of the report is based on the questionnaires. The objective of the questionnaire is to measure the customer loyalty and satisfaction of zongers.and the contribution of ZONG in cellular industry. SECONDARY DATA The secondary data is taken from two research papers and from the website of Zong ,PTA,and academic journals. PRIMARY DATA I got the primary data from different sources like questionnaires and interview,

b) SAMPLE DESIGN TARGET POPULATION The target population includes the customers, and employees. SAMPLE SELECTION Due to shortage of time and lack of resources the non probability convinces sampling is used in this report. SAMPLE SIZE To ensure the reliability of data a sample size of 30 respondents is selected. c) RESEARCH INSRUMENT RESEARCH INSTRUMENT CONSTRUCTION A blend of qualitative and quantitative question has been used. INSTRUMENT VALIDITY AND RELIABILITY The instrument is reliable in that situation it contains specific questions for the required objectives of open-ended questionnaire provided with the specific categorical options .The validity of the questionnaire is judged by the fact that it is given to the potential respondents. 9

d) PROCEDURES Data has been collected through questionnaires and research paper etc.

e) SUMMARY In order to achieve the study objective, a painstaking effort has been made to construct a questionnaire in which every question has corresponds to the objective. The questionnaire contains both open ended and close ended questions.

BUSINESS STRATEGY
Strategic Business unit (SBUS) A SBU is a single product or brand or a line of products or mix of created products that meets a common market need or group of related needs ,and the units managements is responsible of all of the basic business function. ZONG brands /strategic business units. PREPAID POSTPAID BLACKBERRY SERVICE WAP

There are always two elements for the pioneers. 1. Pioneering cost 2. Pioneering benefit W hereas ZONG is almost bearing a pioneering cost but at the same time its also enjoying the better benefits than others ZONG was last mover in Pakistan in 2008 with GSM 900/1800 technology, and that was the real time for the enjoyment of profits, as the ZONG as done in previous 4years .So as the far ZONG is still fetching the more benefits.

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Marketing strategy ZONG is currently working on market oriented strategy. There are two main function on which ZONG is currently enormously focusing.1 . C o s t m a n a g e m e n t . 2 . Q u a l i t y o f s e r v i c e s . ZONG has been successfully built a superior relationship wit h their customers including consumers and corporate. ZONG is completely focusing on the need and wants of their consumers and providing them all there needs according to their desires. Especially ZONG has a enormous customer care centre .ZONG has 3 mainly customer service centers, and the difference is showed with the statistics which is given below;10000 calls per day 2000 customers connected with customer services representative (CSR)100-120 calls attended by one CSR in 8 hours including break.

MARKET DRIVEN STRATEGY Process SEGMENTS

VALUE OPPORTUNITIES

Capabilities/segment match

Targets

Positioning

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SEGEMENTATION ,TARGETING AND POSITIONING ZONG, a telecommunication service provider emphasizes on being part of a value deliver y process. T he first phase, choosing the value, represents the h omework marketing must do before any product exists. First, the marketing staff must segment the market. The variables used for segmenting the consumer market demographic as well as psychographic:Age Income Occupation Social Class Targeting T he second step of choosing the value is selecting the appropriate target market. ZONG target market varies with its different product lines e.g. the mainly targets the corporate sector of the Pakistani community. The Student package and DOSTI HOUR is designed to attract youth; Student Offer Budget is aimed at the middle and Flutter for upper-middle class, while Zong Business solutions and WAP,PORTALS,AND ZONG COMMUNITIES the masses with its diverse value added services. It is important to understand that the future of marketing telecommunication services in Pakistan is going to be based on targeted segmentation strategies. ZONG follows the target selection pattern of full market coverage and develops strategie s as per the requirement of the different targeted segments. ZONG has followed a consis tent strategy of growing the network and ensuring that the products are available everywhere.

Positioning Developing the offerings value positioning is the last part of choosing the value phase of the value delivery process. ZONG catchphrase ZONG------Say it All Tells all about how they want to position the brand in the minds of their target customers. The message they want to communicate to the consumer market is that Zong is the best solution for telecommunication and can be trusted to provide c ommunication facilities all across the globe where no other service is available.

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PRODUCT
Mainly there are two product lines in which Zong operates with each have separate target markets and position. 1. Zong Post paid 2. Zong Pre paid ZONG POST PAID ZONG, the first international brand of China Mobile, has announced its entry into the extremely competitive Postpaid market. Pakistans current situation is extremely competitive, with five telecommunication providers sharing almost more then 650 million customers.

INDIGO AL WARID PERSONA ZONG POSTPAY

Consumer analysis Factors effecting consumers, purchasing power Quality network & availability of products and services Quality advertisement and quality positioning of products Prepaid cards taxes are increased from 9% to 15% Competitors providing flexible verity to subscribe to purchase Pakistan per capita income is $1,207 in 2011-2012

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Market Segmentation Price conscious subscribers.

(Psychographic Segmentation on the basis of low (Psychographic Segmentation on the basis of low tariff rates motivational driving force)tariff rates motivational driving force)

Network Quality and high Network availability conscious subscribers (Psychographic Segmentation)

Youth segment of mobile communication subscribers. (Behavioral and Psychographic Segmentation on the basis of youth taste)

Business community segment. (Demographic, Psychographic, Behavioral Segmentation on the basis of occupation, status, consumption. Income level and education level) Target Market

I have divided the market for ZONG postpaid in to three groups First group of youngsters, where they can have access to a maximum talk time in limited pocket money or earnings include students & masses between the ages of 18-25 The second group is made of business class. Which are having a trend of using postpaid? The third group includes those individuals who have been facilitated with ZONG talk free packages in prepaid.

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Price (ASSUMED) I Have following pricing concept for ZONG postpaid sales Market Penetration Pricing Strategy- charging low price to encourage the customers. Free air time and SMS both on-net off-net Free of cost sim for new subscribers Lowest security charges in comparison with competitors. No hidden charges.

(Place & Distribution strategy) ZONG perform both direct and indirect distribution of ZONG postpaid Direct distribution can be possible from the ZONG 178franchises & 22 CSC which are acting throughout Pakistan While in indirect distribution ZONG uses its 100,000 retail outlets Providence of service guides, Tariff plan, vouchers, helping post materials, products will be provided to the retailers through franchises sales team (RSOs) DSO activities will be made on both company & franchises level, where dedicated staff will be hired for the subject activities For good placement of ZONG postpaid, we will provide ZONG labeled baskets to several retailers and franchises.

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PRICE
The amount of the money which a customer pays for getting the product is called price .Basically price is the first impression of a product which a customer perceives. When price of a product would be different from its competitor customer would think that there must be some difference in the quality as well. So this can easily be said that, The price is directly associated with the quality and brand name of the product. SELECTING THE PRICING OBJECTIVES The company first decided where it wants to position its market offering. The clearer the firms objective the easier it is to set price. A company can pursue any of five major objectives through pricing: Survival Maximum current profit Maximum market share Maximum market skimming Product-quality leadership .The main objective of the pricing for ZONG is to survive in the market. The profits are less important then survival. According to ZONG there are two kinds of pricings, 1) Purchasing price i.e. initial connection price 2) Regular price i.e. call charges per minute

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Pricing Strategy of ZONG

ZONG is also offering postpaid connections wit h the name of ZONG POST PAID, popular within the business class. In this way, ZONG is earning maximum profits by enabling people from different target segments .ZONG PREPAID customers can now call US and a number of other Zone 1destinations on ZONG local outgoing rate. ZONG have following current price Rates on different packages How you express yourself, defines who you are. With ZONG not only can you express more with exclusive value-added services, but also enjoy more choice in plans and discounted airtime rates. Contoured to become part of your expression, ZONG ensures that you derive utmost value out of all your communications, and feel free to be yourself. If you want to enjoy postpaid privileges with the least amount of line rent, this package is for you. Welcoming you aboard the postpaid lifestyle, I-one hundred also offers the best SMS rates keeping in mind your utmost convenience

PRICING STRATEGY FOR PREPAID

ZONG is offering its products and services at a low price so ZONG is using price penetration because all the packages (postpaid and prepaid) are very low priced and a l s o o t h e r v a l u e a d d e d s e r v i c e s a r e a l s o v e r y l o w i n c o s t . S o m e o f t h e m a r e absolutely free of cost like:

Missed call alert E-care MNP Conference call Mobile number portability

Subscription of SMS packages As ZONG gives its customers a package called location base charging it charge you only one time charges and then whole day free

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and many more other. ZONG also using bundle pricing like SMS packages, voice bundle and mobile phone offers 3.7Pricing objectives of the company: Company objective is to provide their customer the low call rate price and give the better services to the customer. For this purpose ZONG introduced many call packages that is suited to particular person that used the mobile. Company used the market segmentation geographically, age and financially. It is also provide the lowest call rate and sms rates indifferent connection then every person can easily used that is perfect for him so it is the best strategy of the company. Company also introduced special packages on special events like the basant, valentine day, eid-ul-fiter, eid-ul-azha and many others occasion. 3.8Product mix pricing strategies: ZONG sets the line pricing only the price is between Rs.100 to Rs.300 so customer can buy the product and all the packages are in every persons range. Company also provides the balance in sim that is optional. Sim that have balance higher pricing rates than that have no balanced. The companies by products are SMS GPRS MMS and call features that provide the company that is some are already available on sim and are activated on our request. 3.9Price adjustment strategies: Company adjust the different prices on different events and low the price and also provide the free connection on her shows and street program only the balance price is charged to the customer the connection is free of cost. Pricing strategi es are divide d geographically and product packages when the company introduces its product company offer the low price and also some time free of cost. Most of the place the company distributes its connections free and on discount on the different event like Islamic event the company provides the discounted call rates and also sms rates and provides the new connection on discounted rates. When the other companies are reduced the price. Price changes: Price changes when the company introduce the new package and launched in market .When the other competitors change he price the ZONG also change the call rates and also introduce the other service like the call block services that other companies are not provide but the ZONG provide their customer that they block the call and also the sms. Competition of the cellular companies in Pakistan is very strong because approximately 5 competitors are in provide there services in Pakistan and the customer also like that company which provide the lowest call rates and also the best services compare to other services providers.

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3.11Inflating price changes: Com pany change the price with inflat ing price changes when the other company change the price low then ZONG then company also introduce the other package compare to the competitors packages but the low price most of the packages are very compatible compare to the other cellular companies. one of the side is always high like if the calling rate i s l o w s m s rate is high and if the calling rate is high the sms rate is low m o s t o f t h e companies used this strategy but the ZONG is best that give the both lowest call and sms rate in one connection.

3.12Competitor's reactions to price changes: Other companies are also low their price compare to ZONG but always the ZONG is the best that give the lowest call rate other companies also introduced different packages thats fill only the one side lowest calling rates or the sms rates only most of the perfect compotator in the market comparatively close to TELENOR, and zong is also the a compotator that give the lowest calling rates and sms bundle but ZOGN is the fully perfect all side of the market. Most of the people used the ZONG

3.13Company's responses to price changes: Company also respond to the compotators prices that they offer so when the prices of the other companies are set at low then ZONG also introduced the lowest call rates and distributed the free connections in market. ZONG also introduced the lowest call rates in international wi de but the other companies are not ZONG i s t h e b e s t I w e c a l l t h e internationally most of the country the calling rates is less then the other cellular companies.

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PRICING STRATEGIES OF ZONG (Assumed)

Competition based pricing

A pricing method in which a seller uses prices of competing products as a benchmark instead of considering own costs or the customer demand. Competition based pricing is a price set by a company for a product to compete with another company's pricing. Production and distribution costs are ignored to drive demand towards another brand. This method of pricing can cause a long-term decrease in product perception and decrease a product's value for future profits.

Psychological pricing
Psychological pricing or price ending is a marketing practice based on the theory that certain prices have a psychological impact. The retail lprices are often expressed as "odd prices": a little less than a round number, e.g. $19.99 or 2.98. The theory is this drives demand greater than would be expected if consumers were perfectly rational

Factors in setting price

Factors in Setting Price

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PRODUCT LIFE CYCLE (Assumed)

Marketing Strategy O ver the Product Life C y

INT RO D UCT IO N GR OW TH MAT UR IT Y DECL INE
Marketing strategy Market developm en t Increase market D efend market emphasis share share

Ma intain e ffic iency exploiting product

Pricing strategy
Promotion Strategy

H igh price, uniqu e prod uct / cover prod uction costs

Low er price over time

P riceat or below com petition

S et price to remain

profitable or reduc to liquidate

Mou nt sales prom otion for prod uct aw areness

Appeal to mass market

E m phasiz e R einforce loyal brand d ifferences, customers; red b enefits & loyalty promo tion costs

Place strategy

D istribute through selective outlets

B uild in tensive Enlarge netw o rk o f d istribution outlets n etw ork

B e selective in distributiontrim , unprofitab le outlet

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PLACE
During the last 4 years Zong has set up large network in country. Currently Zong is covering 11000+ sites. This has involved the investment of the company more than 25 million $ .Zong have more than 21 switches and 1708 cell sites and number is increasing day by day. Zong has also developed around 1100 KM optical cable. As Zong is a new entry in market so they struggle a lot as market is growing also very fastly.In upcoming years Zong is trying to invest in technological upgrades ,superior customer services and improve connectivity.Zong is constantly expanding their distribution and franchise network in nation wide so that zong customer find them easily and as soon as possible. COVERAGE. Zong provide a huge network of 2700 +cities and connecting over more than three million family members in every second of day. Now Zong is providing coverage of three categories. They are Physical Presence

Zong has physical presence in the area Indoor Spillover coverage.

High coverage level in adjoining area Out door Spillover coverage.

Medium coverage level in adjoining area DISTRIBUTION CHANNEL OF ZONG Zong provide its service products directly to customers or with help of intermediaries involved in distributing its product. Distribution channel contain set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business users. ZONG also distributes its product to end user with help of intermediaries as well as it distributes its product directly to cu stomers. ZONG s u p p l i e s i t s p r o d u c t r a n g e t o i n t e r m e d i a r i e s w i t h i n v o l v e m e n t o f i t s Commercial and Sales Department.

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ZONG authorizes lim ited number of dealers to deliver its service product. But ZONG provides its prepaid cards to almost all the markets and consumer shops. Providing its prepaid cards in every corner of the city helps ZONG to satisfy the need of consumer and to gain customer satisfaction. However ZONG deliver its Sims to customer with help of Franchises, service centers, and sales offices. These Franchises, service centers, and sales offices are given by the right of providing its service product by ZONG itself.

Distribution Strategy OF ZONG

T here is three types of distribution strategies. Fir st Intensive Dis tributi on, second Extensive Distribution and third is Selective Distribution. However ZONG follow both intensive and exclusive distribution strategies. While providing its prepaid cards ZONG follow Intensive Distribution strategy means that stocking prepaid cards in as many outlets as possible. While providing its service products ZONG follow Extensive Distribution strategy means that it gives limited number of dealers the right to deliver its product. Logistic Management & ZONG In todays global marketplace, selling a product is sometime easier than getting it to customers. Companies must decide on the best way to store, handle and move their products and services so that they are available to customers in the right assortment, at aright time, and in the right place. Physical distribution and logistics effectiveness has a major impact on both the customer satisfaction and company costs.ZONG also tries to be bes t in phys ical distribution and logist ics eff ectivenes s .ZONG provides the most extensive network coverage footprint across Pakistan through an integrated technology infrastructure in more than1100, towns, villages, and countless remote destinations, including International Roaming in 43 countries through300 partner operators. Logistic partnership and ZONG Companies must als o wor k with other channel partners to improve loop holes channel distribution. The members of distribution channel are linked closely in creating customer value and building customer relationship. ZONG management builds logistic partnership to achieve customer value and building customer satisfaction with different courier services. The couriers companies by which ZONG have partnered are as follows: TCS OCS UPS

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Third party Logistics & ZONG

Most business performs their own logistics functions. However growing number of firms now outsource some or all of their logistics to Third Party Logistics providers. ZONG also use Third Party Logistic provider for transportation of shipment of its service products to warehouses, dealers or customers. Different courier service providers are the ZONG third party logistic providers. The main reason for using third party logistic provider by ZONG is that it is useful for Low Fixed Investments. ZONG selects, motivates & evaluates channel members thought Interviews, Financial standing, Training and Reports.

PROMOTION
Promotion Companies can do more than make good productsthey must inform consumers about product benefits and carefully position products in consumers minds. To do this, they must skillfully use the promotion tools of advertising, sales promotion, public relations, sales force, direct marketing, and personal selling.

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Advertising Goal The chief advertising goal of ZONG is to increase its customer base and to stimulate more usage. ZONG is currently using: Information Advertising: T o create brand awareness and knowledge of its ZONG World brand. Reminder Advertising: To stimulate the repeat purchase of its flutter and family pack. Advertising Budget Since the competition is intense in the telecommun ication market ZONG has a significant advertising budget. It is advertising heavily to be

heard and to constantly remind its target market to go for zong However; Zong actual advertising budget was not disclosed by the management. Advertising Media Zong is using television, print, and radio advertising media to dis seminate it s message and to build a brand preference but the most preferred is television since this medium is the most powerful, reaches a broad spectrum of consumers and has the maximum customer impact. Radio: It has a relatively large listeners base and so is an effective way to communicate the message. Billboards and Print Media: The Company has come up with elaborate posters to promote their post-paid brand. campaigns, billboards and

Advertising Campaigns

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The advertising theme say it all .Its simply a way to communicate, is designed to demonstrate the new services simplicity and convenience.

Along with its service debut, Zong launched a nationwide campaign composed of television commercials and print ads. The national campaign is supplemented by local and regional ad campaigns produced by the ZONG licensees. The national print and broadcast ads are designed to be localized. The success of ZONG has not only to do with its increased offerings, but also has a great deal to do with the campaigns that ZONG comes up with. The TV ads exude energy and liveliness, and an expressive color and lightning palette, the high frequency and visibility makes these advertisements noticeable which results into increased brand awareness and brand loyalty boosting sales. Strong Brand Ambassadors: ZONG in its advertising went on a different route (now copied by competitors) by starring the most charismatic superstars in its advertisements. The tested method of having a prett y face holding a ZONG PACKAGE makes its advertising campaigns booming. THE STUDENT OFFER Campaign: In its STUDENT OFFER campaign has made a conscious effort of strongly placing it on the image platform and mapping it in the prospects mind making it a affordable Interestingly, it re-enforces ZONG early perception of being the brand for the image conscious (peer leader) which gives the impression that STUDENT OFFER enhanced step further in this direction.

The FLUTTER Campaign: The current prepaid campaign has brought ZONG s image to the masses and is more on the functional platform.. It was more than apparent that every single customer was important and every single subscriber was vital. Almost immediately, the marketing and advertising improved; and a more conscious effort was made towards trying to reach out to every aspect of the consumer market. At first, ZONG went a slightly different route, and instead of targeting the large youth market, continued to use its tried and tested method of having a pretty face holding a FLUTTER. But with the competition getting intense, ZONG finally decided to raise the profile of FLUTTER The tariff wars between the providers caused ZONG to offer WAP on FLUTTER and then to slash prices and improve its quality. Finally, zong launched FLUTTER a package designed for the communication needs and lifestyle of the Pakistani LADIES segment. The belated foray of ZONG into the ladies market has met with promising early success, and the new package offers quite a bit. The early success of has not only to do with its increased offerings, but also has a great deal to do with the campaign that zong came up with. Perhaps most effectively and symbolically, the 26

ad showed a woman embracing the youthful abandon that FLUTTER is shown to offer.

PRIMARY DATA The data gathered through the primary and secondary sources will be analyzed by qualitative methods. Conclusion and analysis will also be included in the report. The other mathematical tools like graphs, bar diagrams, pie charts and line diagrams will also be used for the deep and comprehensive analysis of the data. Questionnaire Analysis Question:

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In how much price you have bought the connection?

23% Said in an affordable price 48% said it is extra cheap 29% said it is expensive

Why do use ZONG? 54% said due to lowest rates 40% said duo to signal efficiency. 6 % said they dont know.

Is Zong receive extra charges when introduce new package? 98% said yes 2% said no

Are you satisfied with the charges for local call rate offer by zong? 58 % said satisfied 32% said to some extent satisfied 12% said dissatisfied

How is the Zong coverage network? 23 % said good coverage 67% said it need improvement 10 %said poor coverage.

Are you satisfied with the roaming of ZONG? 56% said they dont use roaming 12 % said it is satisfied 32% said it needs improvement

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Are you satisfied by the time takers to the responsiveness of your problem by the zong connection? 24% said dissatisfied 37% said satisfied 39% said to some extent satisfied

Do you use ZONG for MNP? 69% said no 31% said yes

From primary data analysis I come to know that there are loop holes between customers and Zong. Many customers of Zong do not use those services which are free this shows that they are unaware about the information about zong. Weak advertising campaign about products. Lack of motivation in employees. INTERNAL FINDINGS AND PROBLEMS AFTER INTERVIEW OF TWO OFFICIALS. Job rotation and Advancement.

The main problem I have identified with in the Sales department as a whole is the lack of job rotation within one department and not enhancing the job advancement..No official job rotation takes place within the department even though the employees informally try to learn about the working of other department through their peers. Unequal distribution of Work. Work is not equally distributed on one hand ,some employees have to work all day without relaxing while some others have very little work to do. This not only creates confusion among employees but also hurting and disturbing the overall setup of company .All above it results in dissatisfaction among customers.

Lack of Staff Staff of the Indirect sales is less and work load is too much on the existing staff especially in operations due to which they are unable to give proper time to their franchises.

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BCG MATRIX OF PTA

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STARS

QUESTION MARKS

CASH

COWS DOGS

Mobilink Ufone S A L E S ZONG Telenor,Wrid

Introduction Decline

Growth

Maturity

TIME Life cycle of zong w.r.t competitors

SWOT ANALYSIS OF ZONG

STRENGTHS Lowest rates nation wide

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Strong image of parent company Network portability (over 5000 people switched from other networks to zong) Zong mobile Resources and capital(Being international brand .It has billions of capital to invest in various projects0 WEAKNESSES Bad image with Paktel Still now old staff Weak brand standing Bad Management information System OPPORTUNITES Expand globally Acquire /Merger(as warid is going in loss so it is a big opportunity for Zong to acquire Warid Telecom team) New product development Pak China border THREATS Threat of bargaining power of buyers Substitute product New entry Law and order situation, and Blockage of service and sim on occasions. PEST ANALYSIS Political Factors. Political Instability Deregulation Changes in Tax Laws

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Economic Factors. Gross Domestic Product Average revenue per user (ARPU) Decline in Money value Out flow of Capital

Technological Factors Technological advancement Technological Trends Technological Development

CONCLUSION As Zong step in cellular industry from last 4 years, so it is said that complaints from southern and northern region are belong to maintenance flaws. Lack of strong advertising to attract more and more customers. Competitors of Zong

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are in very strong position and Zong is trying to compete them .Less number of franchises in Pakistan .Only 272 in number which are not enough for huge customer base. Electric crises is one of biggest problem so f Zong as its server are switch off and network is disturb. Lack of diversity from competitors is also seen. Zong does not have the proper list of customers which results in un authorized Sims and creates threats for prepay package. Busy network and get jammed on special occasions. Lack of innovative services as compare to customers. From marketing mix point of view it is analyzed that Zong is a new player in cellular industry and trying to snatch market share aggressively with taking risks. Recommendations

The franchise staff should be well trained and professionals. People often complaint about the network of ZONG this is not justified but still need of improvement
The one of

customer complaint is performance should be updated.

major issues that mostly billing issue, the system and connectivity

Increase the lines of call centers t h r o u g h l i n e s s h o u l d q u i c k l y respond

Management information system is updated and Zong must use improve technological versions for the data record of customers. Connectivity and service lapses should be solve immediately and in quick time. Number of franchises should be increase with respect to increasing customer base. Increase focus on advertising campaign to fetch more and more customers. From marketing mix view the Zong product will made on following pillars. (Functionality ,Quality, Brand ,Warranty, Service/Support.) From marketing mix view the Zong price will set on following pillars. (Discounts, Allowance) From marketing mix view the Zong Place will set on following pillars.(Channel motivation, Market coverage, Location.) From marketing mix view the Zong Promotion will set on following pillars. (Public relations,Budget,Personnel selling.)

REFRENCES. Mr.Salman Wassay (Branch head at Zong Isb) Mr.Ail Ashraf(CS Analyst in CS channel.)

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http://www.quickmba.com/marketing/mix/ Www. propakitani.com www.scribd.com/hanlingmarketing mix.com www.slideshare.net/jignesh145/marketing-mix-6501361 - 94k -

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