Making this report has been an immense pleasure. The experience and knowledge gained during the course of this report is immeasurable.
One of the most pleasant parts of this report is expressing gratitude to the people who contributed to it. Unfortunately, the acknowledgement, no matter how extensive, might miss any individuals, whose contribution, one way or the other, had been of crucial significance.
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instructor of Marketing. !our benevolent guidance and considerate way of instruction has been the driving force and motivation behind this report. S"#$ Thank you very much for the effort that you put in.
Thank you for taking time out of your busy schedules and giving us valuable information which forms the soul of this report.
ABSTRACT
%irstly we would like to thank our marketing management Sir for giving us the opportunity to design a report regarding the strategies and its application in the market industry. Our research was on the telecommunication industry and what strategies they applied in earning a profit and maintaining a stable position along with their competitors. The organi&ation which we chose to conduct a research is 'MO(")"*+, which has been known and praised for its cellular services for more than -. years, and still it having a -st position in the marketing regarding the cellular telecommunication. This report highlights the application of the strategies which MO(")"*+ has used to earn and maintain a position in the competitive market of /akistan.
0ustomer satisfaction is a crucial element for the success of all businesses. One of the biggest challenges for a market is how to satisfy and retain the customers. The purpose of this study is to find the level of satisfaction and loyalty among the users of cellular phones. This study is based on Mobil ink1s prepaid and post2paid customers. The findings suggest that overall customer satisfaction and customer loyalty is comparatively low among the customers of Mobil ink. The 0ustomer loyalty in /akistan3s mobile sector is relatively low because it is an emerging industry, new players are entering in this market and customers are more fascinated to try the new service providers. 4owever it is
expected that when the industry will be well established, the results will be more comparable to other studies.
INTRODUCTION
Mobil ink 5SM 6/M0)7, a subsidiary of Orascom Telecom, started its operations in -889, and till early :..-, had a market share of 9;<. s the first 5SM cellular Mobile service in /akistan by "nc., later it was sold to Orascom,in pril :..-, an MOTO#O)
=gypt2based multi2national company and has become the market leader both in terms of growth as well as having the largest customer subscriber base in, /akistan 2 a base of over :9 million and growing. Mobil ink prides itself on being the first cellular service provider to operate on a -..< digital 5SM technology in /akistan that also provides state2of2the2art communication solutions to its customers.
"n less than two years time Mobil ink grew by almost 9..< with market leadership of >;< market share 6year end :..:7. ?uring the year :..:, Mobil ink has progressed by leaps and bounds. Mobil ink started the year with 9-@,A;: subscribers and 9;< market share. Bith a successful mix of strong brand image and sound financial status, Mobil ink closed the year with cumulative subscriber base of 8>:,-C9 subscribers. Mobil ink ended the year with a record breaking sales performance of -:.,88@ sales during the month of ?ecember. This was the best possible way to end a year that is filled with numerous other achievements. Market Si&e
Total si&e of cellular market is approximately : million in a country of -99 million people. 4ence, the market penetration is only -.9<D this clearly demonstrates the potential in the /akistani market.
Mobil ink offers exclusively designed tariff plans that cater to the communication needs of a diverse group of people, from individuals to businessmen to corporate and multinationals. To achieve this obEective, Mobil ink offers both postpaid 6"ndigo7 and prepaid 6F GG7 solutions to its customers. 0ompared to its competitors, both the postpaid 6"ndigo7 and prepaid 6F GG7 brands are the largest brands of their kind in the /akistan cellular industry. Mobil ink provides the most extensive network coverage footprint across /akistan through an integrated technology infrastructure in more than >,... cities, towns, villages, and countless remote destinations, including "nternational #oaming in --. countries through ;.. partner operators. The company directly employs over 9,... people and has the largest distribution network with :..,... outlets across /akistan.
wareness in the
industry of 8.<, followed by Fa&& with A8< and Star measures at -@<. Market "ndicators Mobil ink reported strong operating profit growth as it continued to reali&e benefits from the acHuisition and retention of high value customers and the continuing focus on cost efficiencies.
Mobil ink is the first cellular operator to introduce the 'franchise, concept in the cellular industry in /akistan, and currently operates the largest franchise network in /akistan with over -.. franchiseeInational distributors 6dealers operated service centers7. "n order to extend its reach even further, Mobil ink
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worked with its franchisees to develop a network of over ;.. sub2 dealersD these operate as /oints of Sales 6/OS7 only and are branded 'Mobil ink 0onnect,. =ach franchisee is adeHuately eHuipped to process sales, collect bills and offer other customer services. ll franchisees have trained sales and service staff, fully capable of tackling sales challenges.
% 0TS
4eadHuarters
MO(")"*+S K"S"O*J
To be the leading Telecommunication Services /rovider in /akistan by offering innovative 0ommunication solutions for our 0ustomers while exceeding Shareholder value L =mployee =xpectations. Mobil inkM#eshaping lives$
MO(")"*+ M"SS"O*J
To be a superior communication service company in /akistan which provides the best value to its customers, employees, business partners and shareholdersN
ORGANOGRAM
ffairs
dministration
Post-paid
Pre-paid
MO(")"*+S K )U=SJ
TOTAL CUSTOMER SATISFACTION:
0ustomers are at the heart of our success. They have placed their trust and confidence in us. "n return, we strive to anticipate their needs and deliver service, Huality and value beyond their expectations.
BUSSINESS EXCELLENCE:
Be strive for excellence in all that we do. Be aspire to the highest standards and raise the bar for ourselves every day. This commitment to delivering world2class Huality translates into unmatched service and value for our customers and all stakeholders.
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=xpand the business. /rovide better service to people in the field of telecommunication.
ttract maximum customers and satisfy them. =xcel in meeting customer needs. Seek employee involvement, continuous improvement and enhanced performance goals.
MO(")"*+
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!es Mobil ink works as a team. Mobil ink is the largest cellular company of /akistan, it is made of a team of over 9>.. of uniHue individuals. They are the best minds in the industry today, being exposed to the best practices and an enabling environment. =mployees at Mobil ink are treated as a big family, where their growth is as important as Mobil ink1s. Mobil ink1s hiring takes place through its website which is being powered with a partnership with #o&ee.pk, one of /akistan3s premier hi website.
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)adies. SM= sector. Movies portal. (usiness class. %light roaming. MO(")"*+ infinity.
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fter evaluating the segment attractiveness MO(")"*+ has target
.that segments
Small and medium enterprise. %or SM= MO(")"*+ has introduced the 'MO(")"*+ blackberry,. (lackberry professional software. ?esigned for the basic needs of sme. 4ow it can be helpful for SM=.
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0haracteristics which differentiate their product
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/remier cellular company. /rice affordability. 4ire famous personalities. Only company offers package for ladies. irplane roaming.
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MO(")"*+ has very strong positioning Fa&&. "ndigo. )argest cellular company in /akistan.
M/S technology to 5SM and trying to enter in the competition. Ouality of service is very important as far as mobile service providers, unfortunately there are complaints mobile users against the big market players especially. /T past /T is the only regulatory authority in the telecommunication industry, in the conducted a consumer survey to check the Huality of service of mobile service providers. Mobil ink has been fined for poor Huality of service as compare to other market players.
(J /#O()=M O% MO(")"*+J
"n this current situation Mobil ink is now facing problems first of all in the customer satisfaction area because as Mobil ink sold over capacity connections in the market and secondly with the entry of new market players that are Telenor and Barid a price war is going on and how target the new potential customers as well as satisfying existing one to retain its market position.
training sessions there and even professors from M"T and the 4arvard (usiness School came over for those sessions.
/rices they charge are also according to the affordability of the customers.
"t aims to have the largest customer base and therefore, providing services in maximum locations.
?ifferent promotion strategies are being used like traditional ways of promotion as well as other ways like sales promotion etc.
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upper strata of the society. That is why its rates are higher than its competitors, Ufone, Barid, Telenor, etc.
operators into that area and based on this Mobil ink has invested
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They have all the ingredients that make broadband or the internet successful. Of course, some work is reHuired in the area of locali&ed content. Most of the content is currently in =nglish so unless they have the content developed in Urdu or the regional languages the penetration will be low, and to this end we are encouraging local content providers. "t will take some time but they do see potential in this area. Mobil ink is shifting from cellular and is moving towards providing total telecommunication solutions.
MO(")"*+ are divided into eight different departments, which are as followsJ Sales. %inance. Technical. Marketing. 0orporate ffairs.
%urthermore, these departments are further divided into sub departments to ease operations within MO(")"*+. decisions are taken centrally, in "slamabad. lso all maEor
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Mobil ink had a great advantage for years as being the only 5SM mobile operator in /akistan, however with the entrance of Ufone in :..- and later on by Telenor, Barid and Gong, the competition in the mobile sector is heating up. 4owever the subscriber base Mobil ink has remained steady and growing as seen in the table belowJ
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M #+=T S4 #=J
/#OMOT"O* O% MO(")"*+J
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The maEor way in which today3s organi&ations promote its products and services is through television, not only because it3s economical but also because the visual and audio aids help in promoting its product. Mobil ink uses an aggressive advertising campaign on television to promote its products. These advertisements, while communicate an image of modernity and newness, still tend to show the heritage of /akistan. The heritage of /akistan and its people signifies Mobil ink, as being the favorite cellular company of /akistan. Mobil ink has also for years, has tried to create different personalities for its brandsJ "ndigo and Fa&&, to distinguish them from other competing brands. Other ways, in which Mobil ink is marketing its products, is through its website and radio. The website of Mobil ink is built in a way to provide updated information about its products, with dedicated pages for both its brands, "ndigo and Fa&&. %urthermore, the website also contains a gallery feature, from where users can view a wide array of print and television advertisement, created by Mobil ink over the years. The use of #adio has also been used to promote the packages of Mobil ink. dvertisement on radio, mostly inform listeners on the new packages and their details.
ambassadors to promote its products in both the electronic and print media. These brand ambassadors come from the fields of acting, modeling, singing and cricket and are few of the most famous and talented stars of /akistan.
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t the recent 5SM Borld 0ongress in (arcelona the 0herie (lair %oundation and the 5SM ssociation published a report on women and mobile phones that contained a feature on an SMS literacy programmed that was piloted in /akistan with U*=S0O and (unyad. This is the first time that SMS has been used as a literacy tool for women anywhere in the world. Mobil ink contribution was recogni&ed in the report.
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/eople at Mobil ink believe that their #esearch L development department is its 0ore competence along with their workforce i.e. their employees. Mobil ink is (asically a customer2oriented company and it always comes up with new features and products. "t surveys the markets and modifies its products according to the reHuirements and preferences of its customers. Mobil ink has relatively rapid product development processes that allow for timely updating and release of new products. "t was the first cellular company in /akistan, which started working on -..< 5SM technology. t the end of the year :..>, Mobil ink crossed its target of reaching up to -. million customers. ?ecember :..>. t this achievement, all the employees at Mobil ink got a month3s salary as bonus in
Motivation that comes from outside an individual. The motivating factors are external, or outside, rewards such as money or grades. These rewards provide satisfaction and pleasure that the task itself may not provide.
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needs and beyond.
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0ustomer perceives mob link as a company they can rely on to provide good Huality service that can meet their communication
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SBOT
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%ollowing are the SBOT 6Strengths, Beaknesses, Opportunities and Threats7 of Mobil ink /akistan.
ST#=*5T4SJ
Mobil ink is the market leader with huge customer base in /akistan market. "t offers mobile services in the maEority of cities and also in remote areas which makes it largest coverage network. "t has been enEoying successful Eourney in term of revenues, profits and market share. Strong marketing and advertising. They have got the Ouality human resources, the reason behind that is strong recruitment and selection process. Offers competitive salaries and benefits to the employees. /owerful brand eHuity. The Huality of service has been tremendous especially in the maEor cities of /akistan. Only Mobile service in /akistan offering coverage on M: motorway. Mobil ink has signed the agreement with >. operators to provide the roaming services in >. countries of the world. Mobil ink is the first company to introduce blackberry services in /akistan for that reason it has been the first choice for the business people. Foint venture with M0( to offer mobile banking services to customers.
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B= +*=SS=SJ
"t offers high calls rate to the customers as compared to the other competitors. Ouality of service is not good in remote areas. The promises made in the advertisement are not fulfilled by company. *ot offering attractive SMS packages.
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)ow the call and messaging rates. "t can offer the prepaid "nternet packages to its customers. %ocus on marketing of "nternet, TK, (lackberry services and radio services to its customers. "mprove the Huality of services in remote areas. =ducating people about usage of services. "t should go for Foint venture with banks to offer mobile banking.
T4#= TSJ
%acing tough competition from Telenor, Ufone and Barid. Telenor entered into new arena of Mobile commerce, it may attract more customers and fetch market share from Mobil ink. #apid rise in Taxes on telecommunication services. "nflation devalues the /akistan currency.
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Security condition is the biggest threat. /ower outage increases the cost of services due.
(05 M T#"PJ
On the vertical axis, market growth rate provides a measure of market attractiveness. On the hori&ontal axis, relative market share serves as a measure of company strength in the market. The growth2share matrix defines four types of S(UsJ 0 S4 0OB 2 6)OB 5#OBT4, 4"54 M #+=T S4 #=7 business unit that has a large market share in a mature, slow growing industry. 0ash cows reHuire little investment and generate cash that can be used to invest in other business units. ST # 2 64"54 5#OBT4, 4"54 M #+=T S4 #=7 business unit that has a large market share in a fast growing industry. Stars may generate cash, but because the market is growing rapidly they reHuire investment to maintain their lead. "f successful, a star will become a cash cow when its industry matures. OU=ST"O* M #+ 2 64"54 5#OBT4, )OB M #+=T S4 #=7 business unit that has a small market shares in a high growth market. These business units reHuire
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resources to grow market share, but whether they will succeed and become stars is unknown. ?O5 2 6)OB 5#OBT4, )OB M #+=T S4 #=7 business unit that has a small market shares in a mature industry. dog may not reHuire substantial cash, but it ties up capital that could better be deployed elsewhere. Unless a dog has some other strategic purpose, it should be liHuidated if there is little prospect for it to gain market share.
;. 0orporate /ackages and Services These product lines have a range of different services, catering to different market Segment.
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Mobile companies today have used immense popularity of prepaid packages to introduce packages that are targeted to different segment. These include Telenor3s ?Euice, targeted towards teenagers and young individuals and Mobil ink1s )adies %irst, targeted towards house wives. %urthermore, packages that bill at -min, ;., 0aribbean, =urope, Middle
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=ast, and frica second and per second have also been introduced by mobile companies. /ostpaid packages were introduced, keeping in mind, the businessmen and executives. /ostpaid packages, due to their nature provided the benefits of connectivity :9IC, without the fuss of scratch cards and recharge of accounts.
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Kalue added services have been designed by companies, so that there are services for every segment of their users and that these services completely satisfy them, as and when needed. Some of the popular services include, religion services, music services, which includes song dedication, voice and timed messages, sports and cricket services, food and recipe services, B /I5/#SI=?5=, themes, wallpapers, games and ringtones downloads, credit share, MMS, voice mail, email, missed call alert, conference call, mobile TK, web:sms and many more.
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Mobile companies provide (lack(erry solutions, Mobil ink and Barid being forefront in this technology, furthermore to add to this innovative service, companies today are providing SMS marketing feature, SMS management facility, fax mail, Bireless connectivity through =?5=, private numbering plans, closed user groups and mobile email to their corporate clients. ll above features and many more have helped corporate clients to manage their Operations effectively and efficiently.
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Ufone and Mobil ink are the closest competitors in the mobile phone market, which currently has almost 9 million users. !et Mobil ink has larger number of the users of its service than any2one else. The competition is expected to get tougher with the government recently granting licenses to two new operators.
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/ak Telecom foresees further cuts in tariffs and incentives packages from companies intheincreasinglycompetitivemarket.
"t is deemed so because the sale of the new connections has been assessed as far above the estimates, which were envisioned by the company at the launching of the free2sale on ugust2-9 that ended on Tuesday, ugust2-C, lasting for 92days.
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CONCLUSION
Mobil ink 5SM 6/M0)7, a subsidiary of Orascom Telecom, started its operations in -889, and till early :..-, had a market share of 9;<. Mobil ink prides itself on being the first cellular service provider to operate on a -..< digital 5SM technology in /akistan . Mobil ink provides the most extensive network coverage footprint across /akistan. Mobil ink strives for excellence in all that they do. "t aspires to the highest standards and raises the bar for ourselves every day. "t takes personal responsibility for actions, and treats everyone fairly, and with trust and respect.
s the market leader, it recogni&es and fulfills responsibility towards the country and the environment in which they operate. MO(")"*+ sees itself as a market leader in the next five years. "t is planning to buy a weaker competitor in order to attain a stable position in the telecom industry. Mobil ink is shifting from cellular and is moving towards providing total telecommunication solutions. Their shareholders believe that this market has a lot of potential, so they continue to invest.
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They have enough investment not only in cellular technology but also in affiliated technology, such as broadband. Mobil ink uses its brand ambassadors to promote its products in both the electronic and print media. s the largest private sector company in /akistan Mobil ink has a corporate social responsibility. They feel that they owe it to society and the environment they operate in. "n order to extend its reach even further, Mobil ink worked with its franchisees to develop a network of over >.. sub dealers, these operate as point of sales 6/OS7 and are branded 'Mobil ink 0onnect,. /eople at Mobil ink believe that their #esearch L development department is its 0ore competence 0ustomer perceives Mobil ink as a company they can rely on to provide good Huality service that can meet their communication needs and beyond. long with nationwide coverage, Mobil ink also provides true "nternational #oaming in over -.. countries. Mobil ink believes in playing an active role in supporting the community and social development of /akistan.
RECOMMENDATION
t the end after having an interview and surveying the telecommunication company of MO(")"*+ we can say that it has been maintaining its position for more than -. yrs and has also extended its coverage in the rural areas where communication has become easy. Bhile looking at the other side of MO(")"*+ it should also work with the weakness of itself and that it should improve its network coverage in the rural areas and also offer attractive packages, targeting all segments so that they don3t
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lose their current position in the market and increase its ranking in the telecommunication industry. Bhereas there are many opportunities for MO(")"*+ as well and that is to introduce mobile banking.
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