INTERNSHIP REPORT

Marketing Communication Department PTCL Head Quarters

Specialization:

MBA - Marketing

Submitted to: Chairman Department of Business Administration

Submitted by: Name: Roll #: Registration #: Mailing Address: Contact #: Date of Submission:

Waqar Ahmed W-580791 00PRI 2365 House No. B-292 Gulistan Colony POFs Wah Cantt. 0322-8517712 -03-2011

ALLAMA IQBAL OPEN UNIVERSITY - ISLAMABAD

1

TABLE OF CONTENTS

Sr.No. 123456Chapter 1

Subject Title page... List of Contents.. List of tables & illustrations . Acknowledgement Introduction Objective of studying the Organization Overview of the organization

Page 01 02 04 06 07 12

1.1 1.2 1.3 1.4 1.5

Brief History . Nature of the Organization.. Business Volume. Profile of Employees Product Lines

14 16 18 21 23

Chapter 2

Marketing Management

2.1 2.2

Organizational Structure Main Offices..

28 29

Chapter 3

Marketing Department

3.1 3.2

Structure of marking Department.. Number of Employees working in the Marketing Department.

30

31 2

3.3

Marketing Operations.

31

Chapter4 4.1 4.2 4.3 4.4 4.5 Chapter5

Function of the Marketing Department Marketing strategies. Product Planning & Development.. Pricing strategy Distribution Strategy.. Promotional strategy. Critical Analysis. 32 34 35 36 39

5.1 5.2

Critical Analysis

42

Success and failure of different products of the organization in the Market along with reasons. 44 Major Competitors of the Organization. Future prospects of the Organization.. Short-Fall/Weakness of the Marketing Department Critical analyses of the management patterns of the origination with Reference to marketing operations, weak areas which need to be Improved Conclusions & Recommendations for improvement. Conclusions Recommendations.. 50 50 48 49

5.3 5.4 Chapter6 6.1

Chapter7 7.1 7.2

Chapter8 8.1 Reference & Sources Used. 51

LIST OF TABLES & ILLUSTRATIONS

Fig No. 1 Table No.1 . Table No.2 . Fig No.2 .. Fig No 3.. Fig No.4. Fig No.5. Fig No. 6. Fig No 7 Fig No. 8 Fig No. 9 .. Fig No.10 Fig No. 11 Fig No. 12..

12 18 19 20 20 20 20 21 21 21 21 25 26 28

I DEDICATE MY SINCERE EFFORTS IN ORDER TO GAIN PRACTICAL KNOWLEDGE DURING THE COURSE OF PRESTIGIOUS DEGREE PROGRAMME OF M.B.A IN MAKETING ALLAMA IQBAL OPEN UNIVERSTY ISLAMABAD TO MY GREAT MY PARENTS & TEACHERS WHO HAVE PLAYED A PIVOTAL ROLE IN MAKING ME A USEFUL CITIZEN OF SOCIETY.

ACKNOWLEDGEMENT
5

First of all, I am grateful to my Almighty Allah who is the only master of my soul and spirit. He awarded me with the right amount of health, strength, vigor and vitality to complete this crucial task successfully. Then comes the turn of my Holy Prophet (P.B.U.H), who is not only the role model for my personality but for every soul living on this land mark. His great words of wisdom are greatly responsible for getting me through this successfully without getting into any kind of my mess. I also acknowledge the efforts of my teachers and prayers of my parents who played a vital role to make me able to carry all this efforts. Especially I pray from the core of my heart for my honorable supervisor

Mr. Muhammad Sheikh Ayub who provided me guidance throughout my

internship.

Waqar Ahmed Roll No. W580791 Allama Iqbal Open University Islamabad

INTRODUCTION

Type

Public 6

Industry Founded Headquarters Key People

Telecommunication 1947 Islamabad Pakistan Walid Irshais (President & CEO) Naguibullah Malik (Chairman)

Product

Wireless Telephone Internet IPTV

Revenue Net income Owner(s) Website

PKR 57.18 billion ~ 681 million USD ( June 30, 2010) PKR 9.3 billion ~ 110 million USD (June 30, 2010) Government of Pakistan & Etisalat www.ptcl.com.pk

Pakistan

Telecommunication

Company

Limited

(PTCL)

is

the

largest

telecommunication company in Pakistan. This company provides telephony services to the nation and still holds the status of backbone for country's telecommunication infrastructure despite arrival of a dozen other telcos including telecom giants like Telenor and China Mobile. The company consists of around 2000 telephone exchanges across country providing largest fixed line network. GSM, CDMA, Broadband Internet, IPTV, wholesale data and backbone services are other major resources of PTCL, making it a gigantic organization. The Government of Pakistan sold 26% shares and control of the company to Etisalat in 2006. The Government of Pakistan retained 62% of the shares while the remaining 12% are held by the general public. INTRODUCTION OF SUBSIDIARIES

Type Industry Genre Founder Founder(s)

Private Telecommunication Subsidiary January 29,2001 Pakistan telecommunication Company ltd Islamabad

Headquarters 13-B,F-7 Markaz Area Served Key people Products Revenue Parent 2336 cities of Pakistan, Gt Road, Super Highway & Motorway Abdul Aziz, CEO Pre Pay, Post Pay Rs.5.1 billion PKR Ptcl Pakistan

Ufone (Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL commenced its operations on 29th January 2001 as a GSM 900 service provider. Since the outset, it has expanded its coverage and customer base at a rapid pace and established itself as one of the leading cellular service providers in Pakistan. Ufone is now considered to be one of the most active, aggressive and innovative players in the mobile sector of Pakistan. The growth of the cellular industry is a direct result of the successful implementation of the telecom deregulation and cellular mobile policy by the Ministry of IT and Telecommunications (MOIT&T) and the support, guidance and timely enforcement of regulatory process by the Pakistan Telecommunication Authority (PTA).

Privatization The growth of the cellular sector in Pakistan can also be attributable to good governance policies of the government of Pakistan and the Privatization Commission. In April 2006, Emirates Telecommunication Corporation, which is commonly known as Etisalat, has assumed management control of Pakistan Telecommunication Corporation Ltd part of the $2.6bn deal to buy a 26% stake in PTCL. The successful privatization of PTCL, and 8

consequently Ufone, is hailed as ushering in a new era for telecommunications in Pakistan. Now, under the management of Etisalat, Ufone will concentrate on customer needs and benefits and is more determined than ever to be the leading cellular player in the market. Ufone has been known for providing superb propositions and quality service to its customers. With the new expected investment, Ufone can now aggressively expand its network coverage. Key Accomplishments Ufone has always played a pivotal role in the development of the cellular market in Pakistan. For the most part, it has been a step ahead in introducing innovative products to the market. Ufone was a pioneer in launching the GPRS services and Multi-media Messaging Service (MMS) in Pakistan, and lead the way in introducing GPRS international roaming and prepaid international roaming for these services in the Pakistani market. Performance As mobile users in the country have reached over 28 million at a very rapid pace, Ufone has maintained itself as the 2nd largest cellular operator in Pakistan with a subscriber base of around 6.5 million and a market share of nearly 25%. Ufone has seen a subscriber growth rate of over 200% in the last year, and since the start of 2005 Ufone added nearly 5 million subscribers onto its network. A remarkable achievement indeed, especially considering the fact that two new international players also entered into the market in 2005. Subsequently the growth in subscriber base caused a healthy trend in revenues which have doubled. Brand While keeping its tradition of being the trend setter in the industry, Ufone changed the image of mobile phones from a luxury only affordable by the elite, to a necessity affordable by the common man. Since its inception, Ufone has positioned its brand for 9

masses. In keeping with the upcoming competition and market dynamics, Ufone increased its focus on the youth segment (which comprises 50% of the population), with the Prepay brand. By designing market focused products, Ufones brand team launched aggressive campaigns, which further increased the brand equity. The new brand image gained huge popularity amongst the targeted market. A recent marketing survey conducted by a prominent marketing research company showed that Ufone has considerably increased its brand visibility and image. Ufones Prepay brand is now considered to be one of the most favored brands by the youth market and is followed by other mobile operators launching their respective brands for the youth market. International Coverage Ufone provides International Roaming facility with more than 150 international operators across 79 countries. Ufone has GPRS roaming agreements with several international operators and also provides prepaid roaming facility to selective destinations. Customer Service Ufone is proud to have an efficient and friendly customer service through 21 companyowned Sales & Customer Service Centers and nearly 250 franchisees across the country. The outlets are able to service the customers with innovative solutions, and are empowered with Web based franchise management systems. Ufone is poised to face the ever increasing challenges of the market and is confident it will attract new customers. It has the ability to retain its existing customer base with a high level of customer satisfaction via optimum network service and a 24 hour call center facility. Network Coverage Ufone has always believed in a solid commitment to growth, security and reliability. Therefore, Ufone has always balanced its expansion efforts and quality of service. With a total current investment of $400 Million, Ufone has network coverage in more than 260 cities and towns and across all major highways of the country.

Ufone has been instrumental in the growth of the cellular market in Pakistan. It is a company committed to excellence. Under the new vision of Etisalat and with the support 10

and collaboration of its employees and vendors, Ufone aspires to be the best in the market by offering customer focused products and a quality service and sales network. MAXCOM PTCL acquired Maskatiya Communication Company (Pvt) Limited (MAXCOM) during the year 2009-2010. MAXCOM is an internet service provider operating in Karachi and some parts of Hyderabad. Its customer base is around 6,000 subscribers. The 100% shareholding of MAXCOM has been transferred in PTCLs name. Because of the acquisition, MAXCOM customers are now eligible to enjoy superior PTCL broadband and other products and services

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OBJECTIVES OF STUDYING PTCL Fig No.1

Main objective of studying PTCL was to do internship in order to fulfill the compulsory requirements of ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD for MBA degree. Secondly as PTCL is the biggest corporation and business entity of our country and I want to study for my knowledge. I studied PTCL in order to understand; The philosophy and goals of the company in relation to the services it provides. As the leading Information and Communication Technology Service Provider in the region we are the link that allows global communication. We are striving towards mobilizing the world for the future. By becoming partners in innovation, we are ready to shape a future that offers telecom services to bring the world closer Hello to the Future is an amalgam of our vision, brand philosophy, brand values and strategy. The essence is futuristic approach. The positioning statement Hello to the Future is basically comprised of two words Hello and Future that provides the inward communication through the word Hello, i.e. PTCL welcomes its customers and the future. Also it offers the outward communication through the word Future by promising customers the futuristic ideas and products. The first key word Hello captures the essence of the whole telephony network that is the backbone of PTCL. Hello is a word which is related to the telecommunication history and has been used ever since and will be used in future. This word expresses the welcoming nature of the PTCL brand, its customer oriented approach and warm 12

environment. Everyday most conversations and relationships start with the word Hello, hence it portrays the relationship building of PTCL with its customers. The second key word Future translates PTCL philosophy in a nutshell to provide planned and proactive solutions and products to its customers. PTCL is constantly evolving and taking its customers into the future. The word Future holds the promise that PTCL is committed to, by providing complete customer satisfaction through innovative and futuristic services and products. PTCL is breaking the stereotypical perception launching into the Future embracing it as the mission to transform the world of telecommunication and the way its customers communicate. PTCL establishes itself as a futuristic entity which is working constantly towards inventing paramount solutions for its customers. The font style selected is bold, straight and modern. The font depicts the brand values that PTCL fosters. About us The infrastructure of the organization. The core objective of the organization existence, which are its customers. The role of the organization as a competitor, and as well as a socially responsible business organization. In Addition to above, the objective was also to apply theories in the practical

situation and draw conclusion. For the purpose, the systems and procedures of the organization were studied in order to learn process. To learn Marketing activities of management of PTCL. To study the hiring and firing decisions of the management and consider the impact of these decisions on employees. To learn how management of PTCL takes decision for promotions of products. To learn the effectiveness of grievances cell in PTCL

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CHAPTER1

OVERVIEW OF THE ORGANIZATION

1.1 Brief History:

From the beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, PTCL has been a major player in telecommunication in Pakistan. Despite having established a network of enormous size, PTCL workings and policies have attracted regular criticism from other smaller operators and the civil society of Pakistan. Pakistan Telecommunication Corporation (PTC) took over operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. This coincided with the Government's competitive policy, encouraging private sector participation and resulting in award of licenses for cellular, card-operated pay-phones, paging and, lately, data communication services. Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTCL, and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be PTCL in two separate placements. Each had a par value of Rs. 10 per share. These vouchers were converted into PTCL shares in mid-1996. In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over basic telephony in the country. The provisions of the Ordinance were lent permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act. The same year, Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of Pakistan PTCL launched its mobile and data services subsidiaries in 2001 by the name of Ufone and PakNet respectively. None of the brands made it to the top slots in the respective competitions. Lately, however, Ufone had increased its market share in the cellular sector. The PakNet brand has effectively dissolved over the period of time. Recent DSL services 14

launched by PTCL reflects this by the introduction of a new brand name and operation of the service being directly supervised by PTCL. As telecommunication monopolies head towards an imminent end, services and infrastructure providers are set to face even bigger challenges. The post-monopoly era came with Pakistans Liberalization in Telecommunication in January 2003. On the Government level, a comprehensive liberalization policy for telecoms sector is in the offering. In 2005 Government of Pakistan decided to sell 26 percent of this company to some private corporation. There were three participants in the bet for privatization of PTCL. Etisalat, a Abu Dhabi based company was able to get the shares with a large margin in the bet. Government's plan of privatizing the corporation were not welcomed in all circles; countrywide protests and strikes were help by PTCL workers. They disrupted phone lines of institutions like Punjab University Lahore along with public sector institutions were also blocked. Military had to take over the management of all the exchanges in the country. They arrested many workers and put them behind bars. The contention between Government and employees ended with a 30% increase in the salaries of workers.

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1.2 Nature of the organization:

PTCL is the largest telecommunications provider in Pakistan. PTCL also continues to be the largest CDMA operator in the country with 0.8 million V-fone customers. The company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. It has the potential to be an instrumental agent in Pakistans economic growth. PTCL has laid an Optical Fibre Access Network in the major metropolitan centres of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network. On the Long Distance and International infrastructure side, the capacity of two SEA-ME-WE submarine cable is being expanded to meet the increasing demand of International traffic.

Vision Statement

To be the leading information and communication Technology Service Provider in the region by achieving satisfaction and maximization Shareholders value.

The future is unfolding around us. In times to come, we will be the link that allows global communication .we are striving towards mobilizing the world for future. By becoming partners in innovation, we are ready to shape a future that offers telecom services that bring us closer.

Mission Statement
To achieve our vision by having: An organizational environment that fosters professionalism, motivation and quality An environment that is cost effective and quality conscious Services that are based on the most optimum technology "Quality" and "Time" conscious customer service Sustained growth in earnings and profitability

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Core Values
Professional Integrity Customer Satisfaction Teamwork Company Loyalty

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1.3Business Volume: Year ended 30 June 2010

(Rupees in Million)

Table No.1

18

Fig No. 2

Fig No. 3

Financial Highlights (Graphs) Fig No. 1

Fig No. 4

Fig No. 5

19

Fig No. 6

Fig No. 7

Fig No. 8

Fig No.9

20

1.4 Profile of employees: PTCL has 30,000 employees. PTCL has own training institute named PTCL Academy in which they trained the employees according to their job descriptions.

PROFILES OF MAIN MARKETING PEOPLES

1. Name Designation Qualification Master Degree

Mr. Naveed Saeed SEVP Commercial Experience; 5 Years in PTCL 2. Name Miss Lubna Jahangir. Experience; 3. Name Mr.Manan Zafer Experience; 4. Name Designation Designation SM Marketing Communication Designation G.M-Marketing.

Qualification Master Degree

3 years in PTCL

Qualification Master Degree

17 Years in PTCL

Qualification MBA- Marketing

Mr Muhammad Al- Fayecl SM Marketing Communication Experience. 03 months in PTCL 5. Name Designation

Qualification Master in Graphic Arts

Mr. Aqeel Shigri Corporate Communication Experience; 13 Years in PTCl

21

6. Name Mr. Alamdar Khan Experience; Designation A.M Corporate Communication Qualification MBA-Marketing

7. Name Designation Qualification MBA- Marketing

Mr. Ismail Shahid Orakzai Assistant Brand Manager Experience; 2-1/2 Years 8. Name Miss Amber Nasir Experience; 2-1/2 Years 9. Name Miss Danish Aftab Experience; 03 Years 10. Name Miss Kulsoom Akhter Experience; 08 Years 11. Name Miss Farhana Yasmin Experience; 05 Years Designation Assistant Manager Marketing Designation Marketing Specialist Designation Manger Media Designation Assistant Brand Manager

Qualification MBA- Marketing

Qualification MBA-Marketing

Qualification MBA-Marketing

Qualification MBA-Marketing

22

1.5 PRODUCT LINES:

Fig No.10

23

UPDATED PRODUCT LINE FOR 2011

Landline PTCL have the largest Copper infrastructure spread over every city, town and village of Pakistan with over million installed lines. The network has over 6 million PSTN lines installed across Pakistan with more than 3 million working. Furthermore installed capacity of broadband is more than 0.6 million ports spread across the cities and towns of the country EVO 3G Wireless Broadband PTCL EVO 3G Wireless BroadbandYour world now in your hands

Three simple steps to High speed On-the-Go connectivity, Just Plug inClick & Connect and experience high speed on the go internet connectivity with the countrys largest and the fastest growing 3G network; wherever and whenever you want. EVO offers its customers a superior 3G internet experience, with flexibility to roam freely like never before, in more than 100 cities Nationwide. Just plug and play or work at home, in the office or anywhere in between with the unsurpassed & amazing speed of up to 3.1Mbps, backed by the countrys largest Wireless service provider; experience the evolution of broadband revolution at its best.

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Introducing Evo 3G Nitro in Pakistan; The Worlds first & most cutting edge EV-DO Rev.B commercial network. PTCL is the first operator in the world to commercially launch EV-DO Rev.B products which offer blazing fast speeds of up to 9.3 MBPS. EVO 3G Nitro is all set to meet the next-generations need for ultimate speed & superior performance. It is the next step in Evolution of the Wireless Broadband Revolution! Whether it is streaming High Definition video or music, conducting a video conference while simultaneously browsing the Internet or uploading multimedia content, in the Nitro Universe everything happens at the speed of light Broadband

PTCL Broadband is the largest and the fastest growing Broadband service in Pakistan. Since its launch on 19th May 2007, PTCL has acquired 500,000 Broadband customers in over 605 cities and towns across Pakistan, leading the proliferation and awareness of Broadband services across Pakistan. Experience the Internet at its fastest with high-speed access from Broadband Pakistan, simultaneously, enjoy Voice service over the same telephone line without any extra cabling connections! Broadband Pakistan offers DSL service with unmatched reliability, affordability and connectivity.

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Smart TV PTCL SMART TV Using its state of the art Broadband network, PTCL entered the media sector on 14th August 2008, by launching a digital interactive television service for the first time in Pakistan. Employing the IPTV (Internet Protocol TV)

technology, PTCL brought Pakistan in the list of a few countries across the globe that offer this state of the art interactive TV service to its subscribers. Branded under PTCL Smart Line, the service includes Interactive Television, Broadband and voice telephony all at the same time on PTCLs telephone line. Besides offering the highest digital quality TV picture, the most revolutionary section of this offering is the ability to rewind and pause live TV channels through TSTV ( Time Shift Television) feature, the ability to block / unblock any TV channel for parental lock and the ability to search through video on demand content. Currently PTCL Smart TV offers its viewers 125 live channels and over 500 Movie titles through its Videoon Demand service. The service is available in 15 cities including Karachi - Lahore - Islamabad - Rawalpindi Gujranwala - Faisalabad - Peshawar - Sialkot - Multan - Sargodha - Jehlum - Wah Cantt - Taxila - Hyderabad &- Abbotaba however it is planned to be expanded to all the major cities and towns across Pakistan during the year 2010 Launched for the first time in Pakistan using the flexible Internet Protocol (IP) technology, PTCLs Smart TV is service which allows customer to be more interactive and more in control with their TV service as compared to conventional TV broadcast or cable TV. Smart TV delivers television programs to households via broadband connection and requires a subscription, a set-top box, and offers key advantages over existing cable TV. You will now be able to:

26

Playback / Rewind live TV channels at any time Parental Lock facility on any channel Search and select favorite programs by using Electronic Program Guide. Viewers have full control over functionality such as rewind, fast-forward, pause, and so on.

Watch DVD quality movies on demand from our library of over 500 titles. Watch 125 plus digital quality TV channels.

Vfone Over the mountains and across the plains; in deserts and through cities, Vfone is the countrys largest WLL network. So whether its unparallel voice quality, network reliability, affordability or unsurpassed presence; the answer will always be Vfone---No one Else!! With Vfone, we make sure you never lose touch with your dear onesVfone lets you connect wirelessly to the whole world. Its easy to use and economical too! With Vfone you can enjoy wireless connectivity and freedom of movement within your premises.

You can use your Vfone to connect to the internet and enjoy a world of information and entertainment. And thats not all; we are continuously enhancing our range of Value Ads to make your Vfone experience even more fun. Using CDMA2000 1X technology, we already have built-up capacity of 2.6M covering over 10,000 urban, suburban and rural villages. The network is already enabled for Voice, Dialup-Internet access (153.6kbps) and EVO Broadband. Vfone Prepaid Vfone Postpaid

27

CHAPTER 2

ORGANIZATIONAL STRUCTURE

Fig No.11

FIG 20

28

2.1 Main Offices:

Registered Office Corporate Headquarters, Block-E, G-8/4, Islamabad-44000, Pakistan. Corporate Customer Centers Islamabad PTCL F-8 Exchange Nazim-Ud-Din Road F-8/1, Islamabad ph: 051 - 111 20 20 20 Fax: 051 - 111 21 21 21 Shahzad.khalil@ptcl.net.pk Karachi Ground Floor, EVP Office, Hatim Alvi Road, Clifton, Karachi. Ph: 021 - 111 20 20 20 Fax: 021 - 111 21 21 21 salman.khan@ptcl.net.pk Lahore 26A Civic Centre Barkat Market, Garden Town, Lahore. Ph: 042 - 111 20 20 20 Fax: 042 - 111 21 21 21 Nadeem.ahmad@ptcl.net.pk

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CHAPTER 3

STRUCTURE OF THE MARKETING DEPARTMENT

Significance of marketing department for an organization is like its soul. Because this department puts all of its efforts to increase the sales of the organization. PTCL is a company that has an energetic Marketing department. All people working here are aggressive and action oriented. Marketing department is responsible for that how product is distributed and prompted and priced. Basically the concentration of marketing department is on customer needs.

Fig No.12

SEVP Commercial

G.M - Marketing

SM Marketing Communication

SM Cooperate communication

SM Marketing Communication

Assistant Brand Manager

Assistant Brand Manager

Media Manager

Marketing Officer

Assistant Manager Communication

Marketing Specialist
30

3.1 Number of Employees Working In the Marketing Department:

The most important department in any business concern is marketing. It is the process of planning and executing the conception, pricing, promotion and distribution of ideas, products & services to create exchanges that satisfy individual and organizational goals. It is the art of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value. Marketing people are actually the communicators who materialize the needs of the customers by producing the products needed. They not only sell their products but also try their level best to satisfy customer needs. Presently about 11 employees are working in the marketing department of PTCL. Whole the marketing department working under kind control of G.M Marketing Miss Lubna Jahangir.

3.2 Marketing Operations:

Marketing department always plays a key role in the success of any organization. Marketing team is considered as assets for any factor who nourishes it through getting continuous orders. He is responsible for negotiating with the buyer, developing and getting approval about lab dips, fabric and samples from the buyer and forwarding buyer requirements/specifications production planning department, so that an order can get delivered on time with all specialization and quality parameters required by the buyers. The General Manager -Marketing is head of Marketing Department . Plans and budgeting: PTCL is mainly focus of its marketing operation because marketing is base of the whole organization if marketing is not strong the company will never be successful. PTCL make strategic plans of its operation in the start of the financial year, In marketing budget is top indicator for the marketer to get their market goals, exact budget figures was not provided by official but from some reliable source that PTCL spend most of his budget part on marketing and advertisement.

31

Work flow: PTCL marketing operations work flow is based on following: Branding Commercial Value Added Services (VAS) Marketing Strategy and Analysis

CHAPTER 4

FUNCTIONS OF THE MARKETING DEPARTMENT

Marketing Department is called a revenue-generating department of an organization. Marketing Department undertakes market research and gives feedback to management about customers needs and wants on the basis of which, products and services are developed and positioned to give value to the customers. Thus Marketing department of an organization plays a pivotal role in its business development, growth & expansion. During my internship I worked with PTCL marketing department. Through working there I gain so much practical knowledge that will help me during my practical life. For understanding the work flow and the operation of the department we have to move in certain manner. We have to look the key operation the structure of the department and in the end the focus will be on the critical analysis. So we will move in the pattern describe below: -

4.1 Marketing strategy

Classically, Marketing has been all about the "four Ps": Product, Place, Price and Promotion. The marketer identifies a target market, defines the product and Pricing to appeal to this market and a strategy to deliver the product to the market. Thus the marketer is the steward of the value proposition, ensuring that the firm is delivering maximum value to its customers. We will briefly discuss below the marketing strategy, product planning, development & management, Pricing strategy, distribution strategy and promotional strategy: -

32

Marketing Stream Normally, a marketing strategy identifies the target markets, the desired position in each market and the marketing mix that will persuade those target markets to part with their money. Market is targeted through market segmentation.

Segmentation can be done on four types i.e. Demographic Segmentation (age, gender, race/ethnicity, household type, home ownership, education, employment, income etc.), Geographic segmentation. Positioning oneself by product can do positioning differentiation, positioning by product usage, positioning against a particular competitor, positioning against an entire product category, positioning by association and positioning by problem, Marketing Mix includes Ps i.e. Product, Price, Promotion and place.

Target Market

PTCLs 80% revenue comes from just 20% customers, who are corporate customers and other big and small business organizations. The main focus of PTCL marketing efforts is on retaining and satisfying that 20% chunk of key customers at any cost. For this purpose, PTCL is now established Corporate Customer Services Centers in major cities to take care of these vital customers. Apart from these important customers. PTCL targets general public and other small business companies for sale of its landline telecom services like telephone, fax, Internet, as well as other services like CLI, VMS, Evo, smart TV, and Digital Facilities etc.

2. Market Segmentation

Basically PTCL segmented its market on two bases. To better implement customer services features, segment the market on a customer basis: Corporate Residential

On the basis of services as:

33

Telephony Data Video

PTCL has segmented its market for its services and products to effectively deal with its customers. Some of its services like Universal Access Number, Co-Location centers and virtual private network are specially targeted at corporate customers and business concerns. The other services like new telephone connections, digital services etc. are meant for mass market. The services like Internet, fax facility etc. are targeted at both the corporate and general customers.

POSITIONING STRATEGY

As PTCL is the sole provider of the landline telecom services in the country; it is the market leader in providing these services because there are no competitors to challenge its market leader status. Thus presently PTCL is facing no problems in positioning its services in the market as a market leader because it enjoys monopoly in the industry. However, with the deregulation of telecom sector PTCL is gearing up itself to maintain this market leader position, on the other hand competitors are doing to challenge it.

4.2 Product Planning & Development:MARKETING MIX Product Planning: In PTCL, products had been planned and developed by the collaborative efforts of engineering department and marketing professionals. The close coordination of marketing and engineering departments in planning and development of products plays pivotal role in satisfying customers. It should also be kept in mind that PTCL is a technical organization enjoying state-of-the-art telecom technology. The services offered by PTCL are built in the technology and with the passage of time; PTCL rolls out these products in the market, even many products, which have become obsolete in developed countries, are launched as new products by PTCL. But we cannot deny the fact that being monopolist, PTCL is depriving customers of many digital services that are available free in many other countries. However, as the Marketing department is not one of the oldest departments 34

rather it is relatively new one, it is expected that in future there will be close coordination and liaison between marketing professionals and engineers for planning and developing customers oriented products. PTCL is also in the process of hiring brand Managers to manage its different brands in a thorough professional way.

4.3 Pricing Strategy: Being a government organization, PTCL is not authorized to determine the prices of its products itself; the Telecom Regulator Authority viz. Pakistan Telecommunication Authority (PTA) fixes the prices of telecom services. The process is such that whenever PTCL intends to increase or reduce the rates of its services, it submits its Proposal to PTA for approval. PTA then calls consumers representatives, journalists and other interested groups for discussion on the proposal. After listening to the viewpoints of all the interested parties, PTA gives its decision. If PTA approves PTCLs proposal, the new rates are enforced. It may be mentioned here that telecom technology is only technology whose rates are on the decline with the passage of time. PTCL also rationalizes its tariff with the passage of time. Tariff rationalization process started in 1997 as part of GoP Telecom Sector policy for privatization of this sector. It was mainly focused on rebalancing the domestic process like NWD, international, local call, line rent etc. Rebalancing is completed by the end of 2003 (as per Tariff rates) with the objective to position PTCL for competition.

1. 2.5% Agency Commission.

Advertising agencies are the service provider companies, they sell their services to the clients. As the reward they charge agency commission of 2.5 % of the business cost. In Pakistan each and every advertising agency charge 2.5% agency commission no agency takes the high or lower commission from the client.

35

2. PAA tariff PAA means Pakistan Advertising Association, this association consists of the senior members of advertising agencies of Pakistan. An approved tariff from all the authorities of this association has been made for production jobs. Production jobs means production of television commercial, radio commercials, production of posters, banners, streamers, etc. As per the clients requirement agency would produce that specific job and would take its chargers according to the tariff.

3.

Cost of Printed items

In fact printing is not the job of an advertising agency but if it is the requirement of the client then the agency can do this job as well, which most the agencies do for the client because they get the profit margin from the printing as well. Companies take 15% commission minimum from the job of printing.

4.4 Distribution Strategy: Allocation of the clients to each client servicing person. As far as the distribution strategy is concerned PTCL has a very good network of landline nationwide. Service centers are established in all cities and towns to provide customers unforgettable service experiences. Distribution Channels CUSTOMER CARE & CUSTOMER SERVICES DEPARTMENT PTCL has established its Customer Services Department at different levels the overview of the said department is as follows. Corporate Customer Care Customer Services Centers Toll Free Help Lines Center Operation Region Level Tehsil Level For Complaint & Enquiry

Now we briefly introduce the functions of these:

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Corporate Customer Care Center To facilitate Corporate Customers PTCL has established Corporate Customer Care Centers at all Operation Regional Head Quarter Level, in all the meager cities country wide. The Corporate Customers can get their problems resolved under one roof in a one window environment by dialing UAN 111-20 20 2. The Customer Relation Officers register the complaints & forward these to the related office. Customer Services Centers To facilitate consumers PTCL has established Customer Services Centers at all Tehsil Level cities/offices. Here the consumers can use Fax Facility, Voice Telephony for Local/NWD/ISD dialing. On divisional Offices Level duplicate phone bills may also be obtained from C.S.Cs. Toll Free Help Lines PTCL offers state-of-the-art call center network to its all type of valued customers for convenient frequently asked Questions, Complaints regarding their services, T/No enquiry. The following three Toll Free T/Numbers are available for this purpose.

a) 1236 (Service Activation) This toll free No is used to change the tariff packages of land line, WLL (V-fone), PTCL phone n net service activation, & for Broad Band customers. The service activation is electronically ordered & activated within 24 hours through concerned department. b) 17 (Telephone Directory) This facility is also Tol Free & is used to obtain the telephone numbers of some specific subscribers (College, Govt. offices, Private offices etc.). This is centralized & is being used as Telephone Directory. c) 18 (Land Line Complaints) To register the faulty Telephone complaints PTCL has established a Toll Free No 18 where a computerized central node is used to register & rectify the consumer complaints for land line numbers. REVENUE DEPARTMENT The revenue generated by the marketing department through selling the company services/products is collected by the Revenue Department. The roles played by the Revenue Department are following. Bill Printing & Distribution. 37

Issuance of Duplicate Bills. Error correction of Bills. Collection of defaulter amounts.

Bill Printing & Distribution The printing is basically carried out by regional billing computer center at every regional headquarter. These printed bills are handed over to Post Office after sorting & stapling by the Assistant Revenue Officers staff at Distt level. Issuance of Duplicate Bills In case of missing or damaged bills received to customers the correction is also Revenue departments responsibility. For this purpose the revenue office deputes its staff for each Tehsil level PTCL office during the bill payment dates normally from 18th to 30th of each month. Error Correction of Bills In case of late payment or any other discrepancy due to missed collection by banks the previous amount is also included in the new bill. The revenue office is responsible for such kind of correction. Collection of Defaulter Amounts The amounts defaulted by the customers or the bad debts are also collected through revenue department. Each Telecom Recovery Inspector (TRI) is assigned a target of bad

RECENTLY PTCL INTRODUCE TO PCPM (PCPM) Public Cash/Card Payment machines. The machines are self payment collecting kiosks which accept cash from the customers against the services provided by PTCL and provide receipt/SMS confirmation to their selected mobile numbers against the cash input. PTCL is launching Public Cash/Card Payment Machines to further strengthen its bond with the Customers. By using the machines, the customers will be able to pay their PTCL invoices while shopping or visiting PTCL

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business offices. By using the machines, Customers can themselves pay their PTCL bills without involving any PTCL staff.

Customer can pay while shopping at Metro and Malls. Payment of PSTN ,BB,EVO, IPTV Recharge of WLL and other prepaid services It updates the customer account immediately . Advance and partial are accepted. The machines will generate receipts for customer in confirmation for the payment. SMS will be sent to the customer in confirmation for the payment . Automatic restoration of suspended lines on payment. Machines are customer oriented easy handling touch screen mode feature having the dialect both in Urdu and English.

No hassle of queues etc.

4.5 Promotional Strategy: PTCL is using following components of promotional mix for the promotion and Publicity of its product/services. Advertising: In promotional mix, PTCLs main stress is on advertising in print and electronic media. PTCL periodically places its advertisements in print media on services like "H/Qs hotline 0800-44544", "Caller line identification (CLI)", "Voice Messaging Service", "Digital Facilities'' "PTCL Prepaid Calling Cards", "Inquiry 17", "Complaint 18", phone bill cards prepaid telephone etc. to remind the customers of these services. Sometimes, corporate ads are also released to print media to mark special occasions. PTCLs Commercials on "Prepaid Calling Card", "CLI", "Voice Messaging", "Digital Facilities" etc. are also broadcast immediately on electronic media as reminders to Customers.

Sign Board. Print Media. Calendar and diary. 39

Magazines/ Press Advertisement E-mail and post mail.

a) TV The main and one of the popular distribution channels is the television. Almost at every class of people watch the television. So with the help of television commercials on television is very successful and very help full for the promotion of a product or services. b) Radio So as radio is one of the main distribution channels of Interflow communication. Interflow makes the radio commercials for their clients and also offers different programs on radio channels. c) Press Another main distribution channel is the press advertisement. Interflow communication has very strong relation with the press media people so they offer different sort of services for its client for the advertising on press media. d) Outdoor Out door advertising includes hoarding, bill boards, banners, streamers, posters etc. Interflow can manage all this types of advertising distribution channels with the help of their group companies very smoothly. e) Magazine Another very important and very well known advertising distribution channel is the magazine advertising. f) Concerts / talk shows, Documentary, Corporate branding There are some other miscellaneous distribution channels like concerts for the client talk shows, documentary production which are very popular distribution channels of Interflow.

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Sales Promotion: PTCL Landline Budget Plan-Zero Line Rent: PTCL is Pakistans Largest Fixed telephony service provider. After the successful launch of Regional and Local call packages in rural and semi-urban areas of Pakistan, Capped minutes were tested through special NTC packages in Lahore, Karachi and Sukkur. The customer feedback has hinted towards a latent demand for capped on-net packages especially in current economic condition where people want to budget their expenses. Personal Selling: As PTCL is enjoying monopoly in fixed-line telephony, the Company has no Professional sales force because the company has not felt any strong need to use the Services of a sales force for increasing the sale of its products. At the moment TCLs Customer Services Centers are playing the role of sales outlets. Customers can make telephone calls; send fax messages from these Customer Services Centers. They can also get connected their telephone bills and get duplicate bills from these outlets. However, with the establishment of Marketing Department in PTCL, The marketing professionals are now in the process of inducting professional sales force for the company.

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CHAPTER 5

CRITICAL ANALYSIS;
SWOT ANALYSIS OF PTCL Now we move towards the most important part of the internship report the SWOT analysis after working 06 weeks in the company I find some critical issues about PTCL. After carefully analyzing these true issues of an organization now I am able to understand the organization in right way so at the end of my report I will go for SWOT analysis of PTCL.

STRENGTH

PTCL enjoy monopoly State of the Art International Gateway Exchanges & Satellite Earth Stations Large earnings Good quality international connectivity Customer Base of over 4 million Government support

These are the few basic strengths of the PTCL now we look each one in isolation.

PTCL Enjoy Monopoly

PTCL is sole provider of land line services in Pakistan .so there is no competition regarding their basic service. it means that there is a monopoly of PTCL. International Submarine Cables High Capacity National Fiber Optic Backbone Ring 36 Transit Exchanges with easy Facility of Expansion About 99% Digitization of Country Network Strong Platforms & Exchanges for Value added Services Access Network & Customer Base of over 04 millions

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State Of The Art International Gateway Exchanges & Satellite Earth Stations PTCL have largest net work with its state of art technology and new digital exchanges. These are the few important characteristics of PTCL network. International Submarine Cables High Capacity National Fiber Optic Backbone Ring 36 Transit Exchanges with easy Facility of Expansion About 99% Digitization of Country Network Strong Platforms & Exchanges for Value added Services

Large Earnings As described earlier that PTCL with more then 4 million users having greet revenues this is another strength of the company

Government support As you know PTCL is government organization so it has great support and it is strength for PTCL.

WEAKNESS Image Government organization Image Lack of customer focus Image Outdated people and technology (perception) Lack of aggressive marketing Lack of customer services Ambiguous management style Lack of corporate culture Social responsibility

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OPPORTUNITY

Growth in telecommunication industry More aware and technology understanding consumer a base that is growing at A fast rate Market open for more number of products less dependence on single category or product Opportunity to introduce High Value Added Products / High margin products for the new, more aware consumer Time to establish brand loyalty, Pre-empt competitors, co-opt partners, invest in technology and networks

THREATS

Internet Telephony & other rapidly evolving technologies Expected competition due to the deregulation in December 2003 New technologies Efficient operators International players, reduction in settlement rates, Migration to satellite and cellular telephony

5.1 Successes and Failure of Different Products With Reasons;

During my internship in PTCL evaluate different products / services and their success and failure. Those are listed below.

Successful Products;
International Direct Dialing PTCl offers a host of convenient package that make international calling easy and cost effective. Expand your business connections or reconnect with tour loved ones. So pick up your landline and start calling the word. 44

PTCl western Express Destinations: (Fixed) Spain, France, Belgium, Germany, Greece, Italy, Netherland and Norway PTCl Eastern Connection Destinations: (Fixed) South korea and Malaysia Destinations: (Fixed + Mobile) Hong Kong

PTCl International Plus Destinations: (Fixed) UK & Australia Destinations: (Fixed + Mobile) USA, Canada , China

Conference Call

3 on 1 line
PTCl Conference Call gives you the freedom to have three people on the landline at one time. Connect locally or internationally, enjoy a three way conversation whenever you want. EVO 3G Wireless Broadband

Going on a business trip, an excursion or a family reunion Downloading a song, presentation or the latest episode of your favorite TV Show EVo now offers a wide variety of exciting package that are designed to suit your lifestyle.

PTCL ADSL Wi-Fi modem

PTCL introduce a Wi-Fi facility on its fixed line broadband service that now allows you to enjoy the fastest and most secure. Broadband from anywhere in your house be it your desktop computer, laptop or a PSP, all at the same time. If your desktop computer dose not have a wireless card, just plug in the USB receiver that comes with the PTCL ADSL Wi-Fi modem and add convenience to speed.

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Management Service

Personal Global number is a unique call management Service that lets you receive and make call from multiple locations with one number. Divert your call from different locations to one number (Fixed + mobile), set 6 preference for incoming calls or make calls from anywhere just by providing the user identification information. Charges for all calls from any number will be billed to one number.

EVO 3G Nitro

First and faster EVDO Rev. B wireless broadband with speed of 9.3 Mbps-EVO 3G nitro. Revolutionizing the three simple steps to high speed on the Go connectivity . Plug- clickconnect with its unprecedented speed 9.3 Mbps. Broadband 10 Mbps

1. The most robust & capable network 2. Biggest network -1000 cities 3. Most flexible bandwidth packages 4. Economical student package for online education 5. The largest satisfied customer base 6. Only service provider to introduce interactive IPTV 7. Quadplay package officer IPTV, broadband ,PSTN & online security surveillance 8. Online BUZZ gaming and infotainment portal 9. Easy Learning- education portal with internationally recognized diploma 10. 10 Mbps with true download & upload speeds like no one else. The most First and faster EVDO Rev. B wireless broadband with speed of 9.3 Mbps-EVO 3G nitro. Revolutionizing the three simple steps to high speed on the Go connectivity . Plugclick-connect with its unprecedented speed 9.3 Mbps.

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Failure Products;
Over the mountains and across the plains; in deserts and through cities, Vfone is the countrys largest WLL network. So whether its unparallel voice quality, network reliability, affordability or unsurpassed presence

Signal Problem

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5.2 Major Competitors of the Organization;

SUBSIDIARIES AND COMPETITORS As already mentioned, presently PTCL has to face war with major competitors in mobile phone & WLL telephony operators, however, there are also competitors of its following subsidiaries/products: -

SUBSIDIRAY/PRODUCT Multimedia & Broad Band (ISP Product)

COMPETITOR There is about 100 competitors of product throughout the country to provide Internet service to the customers. However, some of the major competitor ISPs of product are Wi-tribe,Cyber net, World online, Apollo, World Call, and Comsats WOL etc.

U-fone (Cellular service provider)

There are five competitors of Ufone in cellular phone industry i.e. Mobilink, Zong, Telenor, Waridtel.

PTCL Calling Cards (Product)

Hello Cards, Call Point Cards, Call Mate Cards, Global Telecom Cards.

Wireless Local Loop (V-Fone)

Go CDMA, Wateen Telecom & WorldCall are the Fixed Wireless Telephone competitors of V-PTCL.

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5.3 Future Prospects of the Organization:PTCL is a growing organization after 2009. Traditionally it has introduced modern technologies to serve customers. Customer delight has been one of the core values of PTCL. It has intentions to develop itself to keep align with changes in market and technology. Adoption of 3G technology and intentions to adopt 4G are evident of its strong desire to keep track of marketing orientation.

CHAPTER 6

Short-falls/Weaknesses of the Marketing Department;

Marketing is not such an activity that is limited to only one department rather it is an organization wide orientation that must flow in the veins of organization like blood in human body. Unfortunately in case of PTCL we could not find such an orientation. Following are some of the short falls of marketing department:

Lack of Marketing research Lack of strategic marketing planning Lack of sensing and responding the customer Inefficiencies at the end of marketing department High level of dependence on advertising agencies

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CHAPTER-7 Conclusions & Recommendation for Improvement 7.1 Conclusions;

This internship is proved to be very helpful for me. I got a lot of knowledge and also the practical aspect of the life. It is my first experience which is obviously very tough but it will be very beneficial for us in the future. Besides the above mentioned I think that Marketing department of Ptcl is very efficient with strong communication and negotiation skills and all the members of marketing team behavior leads towards responsiveness. All departments person run smoothly with proper planning, control, and quick decision making. At the end I would like to express my thanks to Marketing departments for giving time and sharing valuable information. This information gave me good

understanding of some basic concept being practiced. PTCL is one of the great, strong, reputed, thrilling brilliant, successful and developed from every point of view.

7.2 Recommendations
As far as my recommendations my suggeastation are as follow. 1. Marketing research should be conducted in order to understand consumer satisfaction level. 2. There so many problems and distortions as for as land lines are concerned. Obsolete lines should be replaced with new lines. 3. Line rent should be reduced 4. Local call records must be handled carefully because customers have so many reservations. 5. V-fone signal problems and hardware has made it a sort of failure. Either quality should be improved or product should be dropped from the product mix. 6. EVO signal problem should be resolved by introducing new technology. 7. Frequency in northern areas must be increased to provide better service over there. 50

8. Internet and local call rates must be reduced in order to make the internet reachable for masses in Pakistan.

8.1 REFERENCE & SOURCES USED;

Product information Employees Profile Business Volume data www.ptcl.com.pk www.wikipedia.com by Marketing & Production Department by Marketing Department by www.ptcl.com.pk.

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