Competitive Enviroment Of Mobilink Telenor

Competitive Enviroment Of Mobilink Telenor At the achievement of 100 million customers PTA has released interesting figures. A very obvious trend shows enormous growth of mobile density. Mobilink, Telenor and Ufone are currently giving each other a tough challenge, Warid and Zong are also increasing their market share and in upcoming days the overall cellular environment will be facing more challenges. Though existing mobile operators are using aggressive and innovative methods of marketing to increase the consumer count, the issue faced is the rivalry. The competition between the stakeholders is also challenged by the newer investments making it essential for old players to know their methodologies and to preserve their market share. Mobilink is a prime example of companies facing this challenge. A large number of users were gained by aggressive strategies of Telenor and that helped Telenor to establish in a lesser period. However, next inline challenge for any giants is to retain what they have gained and always keep their strategies aligned with new methods of marketing. 1.2 SCOPE OF THE PROJECT: The major scope of my thesis is to analyze Telenor and Mobilink telecommunication companies on following three aspects, organizational standards/policies, competitive behaviors and the customer behaviors. I have analyzed their business and marketing strategies by examining their advertisement war and marketing tactics. 1.3 RESEARCH METHODOLOGY: I have used the following research methodologies in writing this thesis: Going through Mobilink and Telenor websites. Collected information from Mobilink and Telenor Employees. Obtained research papers from Mobilink and Telenor. LITERATURE REVIEW 2.1 TELECOMMUNICATION SECTOR IN PAKISTAN: Marketers are foreseeing promising potential in future growth in the telecommunication industry on the basis of the previous 5 years that have shown a rapid and enormous growth in this sector. Government of Pakistan is taking serious interest in the expansion of this industry and funding for the growth and it has a firm belief that this sector will provide quality services to the general public of this country. 2.2 SWOT Analysis: SWOT is basically a method to evaluate an organizations environment. It stands for Strengths, Weaknesses, Opportunities and Threats. It is widely used by the marketers to do an investigation on key issues exist in an organization. It divides the aspects in two halves; one is the external aspect that covers up the opportunities and threats, while the internal aspects are the strengths and weaknesses of a business. It is quite easy to adopt and it helps in identifying the main apprehensions and tries to infuse their remedies in the marketing objectives. 2.2.1 Strengths: Strengths are the attributes that adds up value to a company and make it stand out among other because of the customers positive attitude towards those attributes. Strengths include the specialties in marketing tactics, new and innovative products and services, quality of their internal and external processes, and the market value of that business venture. 2.2.2 Weaknesses: Weaknesses are the negative attributes of a business and it majorly indicates the loose holes in marking techniques. It also indicates the poorly managed internal and external processes, bad management, bad fame because of low quality products and services and lack of innovative ideas. 2.2.3 Opportunities: Opportunities can be best illustrate as the new options that can make a business more strong and open up ways to grab new markets by the use of new technologies, market trends, or by implementing innovative ideas for earning huge revenue and strengthening the businesss position in the competitive market. 2.2.4 Threats: Threats are the upcoming disasters that can make a businesss position fragile in the market place. These can be the lower prices offered by a competitor, better and innovative products and services offered by a competitor, new rival emerging in the market, etc. 2.3 MARKETING MIX: Marketing Mix are 4Ps of marketing study, which includes product, place, promotion and price but for the industry of services, it is taken up to the next level that embraces physical evidence, process and people. This concept gives the marketing professionals the flexibility to alter the current offers they have for their customers and make new innovative offers by manipulating these 7Ps. 2.4 CONSUMER BEHAVIOR: For any business, the behavior of the customers and their buying patterns are of great importance. A customer buying behavior is precisely classified in the following four aspects. This classification helps in creating new products and services and identifying potential customer. The first and foremost aspect is the Cultural background of the customer that includes its attitude and thinking directions that roots down to the core values its family and society make up of. Another aspect is the Social factors that strongly reflect in its choices and decisions; it is basically about the social environment it possesses because it truly affects a persons mind set. Third aspect is about the Personal Characteristics that includes the social and economic status, personality, age group and intrinsic uniqueness. Last but not the least aspect is about the psychological Characteristics that comprises of the insights, motivation and way of approaching towards different things. All of the above fac tors influence the decision making of a buyer. 2.5 CONSUMER BUYING DECISION PROCESS: Marketing professionals use different tactics to study the purchasers mind and make strategies to use this information in improving the sales of their products or services. There are several things that are running up in the purchasers mind at the time of purchasing; these things are the information available to the purchaser, the alternatives, acknowledgement and his personal preferences. 2.6 SEGMENTATION: The identification of purchasers in a market place who owns similar necessities and acquires identical manners is called as segmentation. 2.7 TARGETING: After the completion of segmentation, marketing professionals picks up a segment of market place to keep it in focus. 2.8 MARKET COVERAGE APPROACH: Organizations put together their planned strategies to attain specific targets and mile stones and as the time passes by, these planned strategies are altered by keeping in mind the growing needs of in-focused markets. The in-focused market is a deposit of purchasers who have recognizable needs and these needs are recognized by companies to offer new products and services for benefiting the market. There is an approach called as market converge approach that facilitates an organization to construct the right strategy for its in-focused market. We can divide the market converge strategies into three broad categories: Undifferentiated strategy: this strategy states that a company provides undifferentiated products to customers at lower cost after identifying their needs. Differentiated strategy: this strategy states that a company provides a product that is profitable and full fills the need of a certain segment of market. The product is actually differentiated on certain factors that include its features, prices and availability but the quality of the product should be maintained at a reasonable level. Concentrated strategy: this strategy states that a company brings up a product after identifying the gap in the marked which was not earlier identified, the most money-making strategy is positioned marketing. 2.9 POSITIONING: Positing is about valuing a products position within the market and it is done after segmentation and aiming a customer class. Positing depends on the perception of the person who is evaluating a products position and it always varies and so does its results. MOBILINK 3 INTRODUCTION OF MOBILINK Mobilink has started its operation being the subsidiary of Orascom Telecom .Currently is the market giant in Pakistan Telecommunication industry because of having the leading number of subscribers which exceeds 31 million and its still increasing day by day. Mobilink is a market ruler in terms of its expansion. Mobilink is so delighted on taking initiative as a cellular service provider. Mobilink is the so delighted to provide high-tech telecommunication solutions to its privileged customers nationwide. Mobilink puts forward exclusive and specially designed packages to its customers nation wide having diverse needs, it includes all type of subscribers like individuals, business personals, and corporate tariff plans. Mobilink offers Postpaid and prepaid tariff plans to its privileged subscribers. These solutions are competitive and balanced packages in the current fierce market competition. It also offers various Value Added Services. Mobilinks strongest point is its far and wide coverage that covers 9000 regions and localities inside the country and over 130 other countries worldwide for international roaming services. 3.1 Products Mobilink is offering two different types of tariff plans, one is Jazz that is offered to the masses of the society of all classes and it is better for keeping control on cellular expenses. Prepaid service has so many different packages for different type of users. While, the other service that is Indigo is for society that can afford to pay monthly bills. It has a wide range of packages for different type of users and they are based on the level of usage of the service. 3.2 Value Added Services Info Services Home SMS Translator Call / SMS Blocking Power Tools Info Services Reverse Auction SMS Filter SIM NIC Services Package Info Service SMS Search Islamic Portal Holy Sayings Kisan Service My PowerTools 3.3 Sales Tactics Mobilink also led the way up for opening up franchises nationwide and it has over 500 franchises which provide different services to its customers. Mobilink has over 800 sub dealers too that help it in expanding its network and quality services. The basic idea behind opening up a franchise is to provide help to its customers that are encountering any issues or problems in the communication service. Franchises also provide facilities for bill payments, sales, etc. Mobilink has hired proficient personnel who are dedicating working for providing help and support to Mobilinks privileged subscribers. 3.5 Mobilink Core capability: Research and development is always a core competency for every service providing organization that wants to compete in the fierce market war and Mobilink has it all as well as its employees. Mobilink takes pride in its hardworking and proficient professionals that makes it a market leader by dedicatedly working for its growth and integrity. The research and development department always takes part in launching new products and services for the sake of its customer and Mobilink knows who to keep its customers bind and pleased. It launches innovative products and services to the market that adds up its value, like the recently launched Jazz Jazba. 3.6 Operational Targets To lift and improve market share: Mobilink is trying to lift and improve its market share by investing in various other business like wireless solutions and broadband internet offers. It is putting up efforts in not only sustaining its current market positions that possess almost 40 % market share as well as trying to increase it. Mobilink is keen in making up a positive image in its subscribers mind and wants to increase its horizon from telecommunication industry to other businesses as well. It has offered infinity click service for Karachi people and also organizing different activates for making things better at both ends. To keep its position of having largest customers: Mobilink wants to keep the title of having largest number of customer nationwide and for keeping this pride, it has to bring fresh and exciting offers for keeping its customer satisfied as there are other service providers are also in the market like, ufone, warid, Telenor and zong; all of these companies are providing their services on cheaper rates than Mobilink and that is the main point of concern for this market giant. Workers Growth and development: Mobilink takes great pride in its reliable and skilled workforce that is the main reason behind its success. Mobilink values its employees and always tries to improve their technical and interpersonal skills by proper training, recruiting and evaluating current employees by appraisals. Mobilinks HRM department is effective and keen to grab the best professionals from the market place and make them real treasure for the company. 3.7 Business Strategies at Mobilink There are three most important functioning strategies: Commercial Strategy Production Strategy Operational Strategy Commercial Strategy Commercial strategy focuses on the overall range of products and services which actually in total encompasses the companys product line, different methods and processes through which a company interrelate its products to its business. Early mobilink only focused on its internal expansion but due to increase in competition they have changed their strategy and now working with other telecomm companies for example Mobilink started to work with Citi bank, Atlas Bank and KASB for the online bill payment system. Production Strategy Mobilink production strategy focuses on putting together its profitable products hence maintaining and strengthening its business position which will also benefit them in the long term. To continue its production Mobilink has always worked with its research and development department to distinguish its product from other competitors on the basis of network simplicity, as compare to its competitors. Mobilink has created their product and services unique through: Promotion/Advertisements Mobilink have an enormously impressive marketing team who designs and promotes its packages and services by keeping in mind the variations in consumer behavior of customers. Mobilink has been advertising and promoting its offerings through different media like Electronic media. Promoting its new products through Print Media like glossy magazine, tabloids and Billboards. They have nominated different sportsmen and celebrities as their brand ambassador. 3.9 Operational Strategy As the cellular companies continue to launch new services and products, they are implementing new and innovative strategies to beat their competitors. Most of the companies has started to focus on low cost strategy, by offering cheaper rates they comprise on service quality, on the other hand Mobilink stands firm on its quality service strategy, they dont comprise on quality at all, this is also the reason that its rates are on higher side but its loyal customers understand and appreciate Mobilinks efforts to maintain the quality management hence they dont switch to other companies. 3.10 Mobilink Infinity Mobilink introduced Wimax wireless technology which doesnt need any telephone lines or any kind of cables to connect to the work internet. Mobilink Infinity fulfils the requirement of a user who wants to access the internet with fast speed and unlimited downloads. Mobilink Infinity is available in different packages for the home users. A subscriber either can use a dongle or a modem to connect to internet. CORPORATE COMMUINCATION SOLUTIONS Mobilink Infinity introduced several last mile connectivity solutions for corporate user and organizations through which high speed connectivity can be achieved. These solutions include wireless solutions, microwave solutions, VSAT, Optical fiber and xDSL. Currently Mobilink has the state of art optical fiber network being commissioned across the country covering all the regions and cities of Pakistan. MOBILINK GENIE: Through Mobilink genie a user can pay bills through Mobilink connection. This solution is designed to comfort the lifes of its users by saving their time. You can pay your utility bills as well as Mobilink bills through this package from anywhere and anytime. 3.12 SWOT ANALYSIS OF MOBILINK Strengths à ¢Ã¢â€š ¬Ã‚ ¢ Its main source of power is the foundation of its robust, indispensable and balanced marketing strategy, which is proposed to fulfill the needs and requirements of its customers. à ¢Ã¢â€š ¬Ã‚ ¢ Mobilink has been generating high revenues in past years which enable them to invest heavily to improve its infrastructure, technology and research and development areas. à ¢Ã¢â€š ¬Ã‚ ¢ First Mover advantage. First company to launch GSM service in country à ¢Ã¢â€š ¬Ã‚ ¢ At present Mobilink has the largest market share, they have the most cellular users in the country also their revenue earnings are highest as compare to other companies. à ¢Ã¢â€š ¬Ã‚ ¢ Mobilink was first to launch the Blackberry services in Pakistan and currently they have the most users of this service. à ¢Ã¢â€š ¬Ã‚ ¢ Mobilink is the first cellular company which launched the mobile services in the northern regions of Pakistan. Weaknesses à ¢Ã¢â€š ¬Ã‚ ¢ Even though Mobilink is covering whole country but still its rates are on the higher side, because of this particular matter Mobilink lost their share values in previous years. à ¢Ã¢â€š ¬Ã‚ ¢ Mobilink has been less investing and focusing on the Advertisement as compare to its competitors, this is one reason which can harm them in future as their customers will start switching to other networks. à ¢Ã¢â€š ¬Ã‚ ¢ It has been found that Mobilinks network is usually busy in densely populated areas. à ¢Ã¢â€š ¬Ã‚ ¢ PTA has fined Mobilink twice because of its bad service and user complains. So they need to stress on giving improved services to its existing users rather on development of its network. Opportunities à ¢Ã¢â€š ¬Ã‚ ¢ Mobilink can expand and extend their existing share by targeting young generation as Ufone and Telenor has been doing, they can also introduce new packages for old age people, but these packages must be introduced keeping in mind the pocket of every targeted segment. à ¢Ã¢â€š ¬Ã‚ ¢ Mobilink can use their brand name and image to target new customers as well as retain their existing users for this they need to implement innovative promotion techniques. à ¢Ã¢â€š ¬Ã‚ ¢ By working on CRM system Mobilink can enhance its relationship marketing procedures which will benefit them to achieve their goals. Threats à ¢Ã¢â€š ¬Ã‚ ¢ The new entrant Zong has come up with very cheaper rates due to which cellular consumers especially youngsters are shifting to Zong. à ¢Ã¢â€š ¬Ã‚ ¢ Telenor is now offering better postpaid packages and services for business and high class users. à ¢Ã¢â€š ¬Ã‚ ¢ Current price war between all cellular companies might result in a situation when only brand images and names will be important for new cellular user. 3.13 BCG Matrix I have examined Mobilinks products and services through BCG Matrix. Following are the main products: à ¢Ã¢â€š ¬Ã‚ ¢ Mobilink Indigo à ¢Ã¢â€š ¬Ã‚ ¢ Mobilink Jazz à ¢Ã¢â€š ¬Ã‚ ¢ Mobilink Blackberry Services Cash Cow Mobilink Indigo is the cash cow for Mobilink. Likewise Mobilink Blackberry services help Mobilink to generate good amount of revenue as it is mostly use by business class. Star Mobilink Jazz is the star for the Mobilink, this is one package whose users will keep on growing. Question Mark Jazz one, Jazz easy, club red are question Mark for Mobilink because more or less similar packages are also offered by its competitors. Dog At present no product or service of Mobilink comes under the dog category. TELENOR 4.1 INTRODUCTION OF TELENOR: Telenor is basically a Norway based telecommunication service provider and it has a major place in telecommunication industry worldwide. Its operative in quite many countries around the globe. Its main operation office is in Islamabad and main regional offices are in Karachi and Lahore. Telenor has expanded and increased massively since its founding and has achieved several objective to meet its goal. They have currently 24% market share with more than 23 million users. They are among the top cellular companies around the globe, Telenor has been investing hugely to improve their infrastructure so that they can reach every remote location of the country. 4.1 Organizational Principles: Produce trouble-free resolutions People at Telenor have a great interest in producing simple, easy and hassle free solutions for their customers. Their motto is to make peoples life easy and simple by providing quality services. Maintain Promise People at Telenor always put their best efforts to get the work done. They believe in producing the best possible solutions for their privileged customers. They never sacrifice over quality to provide solutions and offerings. Keep moving Telenor have the best resources to deliver the goals. They make every effort to bring energy to the work they get done. Every product they create appears better and finer. They are always keen and eager about everything that is related to their trade and subscribers. Social endurance Telenor has people that are quite familiar with the area they are operating and they love being gelled up with the local society by respecting and valuing their social and moral values. They never compel a uniform strategy globally but they actually wish to gel up with the local people anywhere they operate. Telenors main operational approach is to expand their market value by capitalizing on its subscribers all over the world and to increase the companys efficiency and out but by integrating work efficient and advanced marketing techniques with diverse business ventures. The focused chief points are as follows: Buildup their rank as a global cellular provider Telenor is very keen and eager to position themselves as the top and largest mobile operator not only in Pakistan but also. They have been collaborating with other top mobile operators in order to seek new ideas and strategies so they can strengthen their operations and ability of producing better services. To reach every remote area Telenor is keen enough to renovate their operations in all the remote regions. Their presence in every part of the country will make them a bigger operator. By establishing an integrated communication they can support and give value to their users in a better and efficient way. Worldwide harmonization Telenor intelligently use its worldwide harmonization program for grabbing the local market in mobile operational services. It assure its control by this using this program and take advantages. In current cellular market condition it has been very important for operators to come up with effective strategies also being aware of other strategies which are used by their rivals. Giving value addition to customers through offering cheap packages and value added services. 4.5.1 Production Strategy Customers are the main focus of attention for Telenor, everything they do, make, forecast is for their valuable customers. Telenors business strategy entitles its customers to grow and increase their interest and loyalty with Telenor. Their strategy, vision and mission is a representation of the social values of its customers, these are the main factors which differentiate them for others. To achieve its vision and goal Telenor has always come up with exceptional business strategies which are essential in helping the local culture and getting to the already forecasted plans and goals. Moreover a top serving management makes it easier for the bottom management to accomplish all these typical issues and task. Telenor doesnt sacrifice the ethical rules and regulation in order to implement its business strategies. All the international ethical procedures are adopted and applied with strict monitoring; they have a very strict code of behavior for all the employees. 4.5.2 Telenor strategies: Telenor achieves its motives and goals by implementing following strategies: Societal Commitment Telenor is always keen to perform all the social obligation that are important and they strive to purpose valuable products and services to various sects worldwide and they want to take part in socio-economic growth of the region and they take it as their responsibility and trying to improve it by all means. Delivering best Quality Telenor is more than a service carrier for the societies it serves and has become an essential part of their business thus contributes to the economic growth. Since Telenor buys so many products and services itself to serve its customers. To ensure that best services are provided to customers, Telenor ensures the quality of products and services it acquire from market. The standards of services we commit to our customers are what we demand from sellers and service providers, serving our business. Partnership: Coalition and responsiveness is quite important with other organizations either public or private institutes. Education and exploration Starting up, holding up and running exploration programs with education session and other competitions. Administering specific Processes Telenor organizes different events, including seminars, sessions and conferences related to the fields in which Telenor is operating. Fulfilling Commitments They always fulfill their commitments and if its not the case, they are always present to help and lead others. Vibrant Being vibrant is being energetic and having a passion for excellence and achievement. Inventive Being inventive is all about innovating new and amazing services and products that can bring up maturity to the organization. Accountable Being accountable is all about keeping promises and being committed and devoted to work that can lead to a good reputation and market good will. 4.6 Forecasted targets Aspects 2010-11 2014-15 Telenor share 24% 45% Market saturation 11% 35% Income share 9% 35% Impulsive Brand Awareness 22% 85% 4.8 Consumer Oriented Approach: Basically segmentation is done for dividing a market in various segments and then identifying need for every portion. It is necessary for researching and finding gaps and opportunity and it can help in keeping track of the progress too. Telenor has a subscriber oriented approach and it wants to give top priority services to its subscribers. It has divided the market into different segment for the ease. Comparison of Mobilink and Telenor : Feature Mobilink Telenor Product Maturates Mature Growing Share 40% 24% Exposure 1100 cities 900 cities Brands Jazz, Octane, Indigo TalkShawk, Telenor DJuice Marketing function Outstanding Standard 4.9 Approaches for Segmentation: As Telenor have various departments and divisions responsible for their products hence they have diverse and unique segmentation strategy for their each product and service, moreover they have different strategy even for the promotion programs split. They always pay more attention on their loyal customers. Efficient and effective market surveys and researches are done in order to get the customer feedback then the total market needs and potential is analyzed and calculated finally in the end buying power of consumer is analyzed for each n every segment. Telenor has an assorted segmentation strategy and a different marketing program is build up for each market segment. Telenor is always very concerned about its privileged customers and because different people look for different settlements and their needs for services always vary. A level of markets potential is approximated for each segment and it helps in setting targets and designing different strategies and making policies for increasing the sales. 4.10 Approaches for Pricing: Telenor approach for pricing is very simple; they started by targeting the young generation. Because of the tough competition every Telecom company have to be very flexible in their pricing approaches and offerings. You can lose your customers very easily and cheaply if you are rates are not up to the standards and needs of consumer Cellular companies keep on launching new packages with best and revise prices so that their customers remain stuck to their products and services Launching of Djuice and TalkShawk are the excellent examples of how Telenor targeted the youngsters, as the young generation is more price sensitive as compare to business Telenors follows the simple standard business models while creating their pricing strategies. They have come up with best offerings; every now and then they are launching more exciting and cheap packages for their customers. One example of this is their current Persona package which fulfils the demand of a business and corporate user. 4.11 Approaches for Promotion: Telenor approach and idea for promoting and advertising of it products and services is completely different from other cellular companies. They are using every possible available medium of communication to communicate with their targeted customers. Their main focus and goal regarding promotions is to become the top cellular company of the country by increasing their market share along with providing them the value they deserve 4.12 Media Advertising: In todays television channels boom advertising plays an important role to represent and pass the message of a service provider to its customer. Through advertsising telenor has been easily hitting the factors which affect the consumer decision making process. In current cellular media war Telenor has managed to retain its value by appropriate advertising strategy by selecting countries famous personalities in their promotion campaigns. 4.13 FUNCTIONAL ORGANIZATION SYSTEM Availability: For Telenor, production is about offering a vast variety of packages and it is working quite well in providing amazing and innovative packages with high-tech facilities Telenor is leading the market in providing quality high-tech services and making them available for everyone. Business Centers: Telenor has it business centers and sales service centers in major cities for all the technical and non technical queries. These centers provide facility to the subscribers fo