MOBILINK INDIGO A PROJECT REPORT

MOBILINK INDIGO

A PROJECT REPORT PRINCPLES OF MARKETING

TABLE OF CONTENTS

Executive Summary………………………………………………………………………….01Industry Overview…………………………………………………………………………...02Mobilink Introduction……………………………………………………………………......03

Company Mission……………………………………………………………………03Company Vision……………………………………………………………………..03

Organizational Chart…………………………………………………………………………05Company Objectives…………………………………………………………………………05Top Management…………………………………………………………………………….05Competitors………………………………………………………………………………….06Product Lines………………………………………………………………………………...07Market Segmentation………………………………………………………………………...08

Geographic…………………………………………………………………………...08Demographic………………………………………………………………………....09Psychographic………………………………………………………………………..09Behavioral……………………………………………………………………………09

Target Market………………………………………………………………………………..10Positioning of Mobilink……………………………………………………………………...10Brand Position………………………………………………………………………………..11Brand Personality…………………………………………………………………………….11Market Analysis and Size…………………………………………………………………….12Market Share…………………………………………………………………………………13Marketing Mix……………………………………………………………………………….14

Product……………………………………………………………………………….14Price………………………………………………………………………………….18Place………………………………………………………………………………….21Channels of Distribution……………………………………………………………..23Promotion……………………………………………………………………………24

SWOT ANALYSIS………………………………………………………………………….27BCG MATRIX………………………………………………………………………………32Recommendations…………………………………………………………………………...35References...............................................................................................................................36

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EXECUTIVE SUMMARY

Mobilink GSM, is a telecommunication service provider in Pakistan. According to PTA statistics, Mobilink has 29.55 million customers by July 2009.Mobilink is the largest cellular service provider in Pakistan. Mobilink's corporate postpaid package is sold under the brand name "Indigo" and prepaid by the name of "Jazz".This long-term report focuses on the Mobilink’s Product “INDIGO”, and comprises how company started its post-paid services in Pakistan, which segmented strategies it adopted and which segment had been and has been catered by it.This report gives a clear idea for understanding the cellular industry growth and background in Pakistan, and what product lines and categories Mobilink have been offering to this industry.Positioning, Brand Positioning, Brand Personality have specifically been designed by Mobilink for its product Indigo and this report elaborates how they Position their brand in people’s mind, what brand positioning is all about indigo and what brand personality is given by Mobilink to Indigo Postpaid.Market size and Market analysis have also been comprised by us in this report, presenting the current market size of cellular companies in Pakistan and share of Mobilink in overall industry and share of Indigo in Post-paid industry has been given in this report.Coming to the Product Mobilink Indigo we have summarized in this report all the strategies of the company, including the 4Ps of Marketing that is Product, Price, Place and Promotion.

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INDUSTRY OVERVIEW

Since inception of Pakistan, basic telecom services were being provided by a monopolist, previously called as Telephone and Telegraph department (T&T).The department was being run by Government and played multiple roles of regulator, policy maker and operator in the country. The T&T department was later converted into a corporation. Although the corporation was earning huge profits from the services, it was re-investing the same profits into the sector for the provision of more telecom service but the investment was not enough.Further, with the technological advancement, more and more telecom services were becoming available but there was not enough money available with the corporation to install new telecom system for the provision of modern services.Resultantly we remained far behind our neighbors and other comparable countries in terms of telecom access.

Cellular services in Pakistan were commenced in 1990s when two cellular mobile telephone licenses were awarded to Paktel and Instaphone (Pak Com) for provision of cellular mobile services in Pakistan.Currently there are five cellular players in the market Mobilink GSM, UFONE, Telenor, WARiD and ZONG.Cellular subscribers grew over the years however due to partial competition; cellular companies could not meet the growing demand in Pakistan.

But now cellular market has exploded fourteen-fold since 2000 to reach a subscriber base of 91 million users in 2008, one of the highest mobile teledensities in the entire world.By March 2009, Pakistan had 91 million mobile subscribers - 25 million more subscribers than reported in the same period 2008. Collective revenue of the industry has grew by 35% in year 2007-08.

Competition among operators has become more intensive with aggressive entry of CMPak, a China Mobile subsidiary in Pakistan. CMPak with their brand Zong and Telenor have added significant subscribes very rapidly, therefore in response to Zong several cellular operators offered value added services at lower rates to attract more customers.

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MOBILINK INTRODUCTION

Mobilink GSM (PMCL), a subsidiary of Orascom Telecom, started its operations in 1994, and has become the market leader both in terms of growth as well as having the largest customer subscriber base in Pakistan - a base of over 28 million and growing. We pride ourselves on being the first cellular service provider to operate on a 100% digital GSM technology in Pakistan that also provides state-of-the-art communication solutions to its customers.

Mobilink 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 objective, we offer both postpaid (Indigo) and prepaid (JAZZ) solutions to our customers. Compared to our competitors, both the postpaid (Indigo) and prepaid (JAZZ) brands are the largest brands of their kind in the Pakistan cellular industry.

In addition to providing advanced voice communication services that makes the lives of millions that much easy, we also offer a host of value-added-services to our prized customers. At the same time, Mobilink places high importance to its coverage, which is why we cover you in 10,000+ cities and towns nationwide as well as over 130 countries on international roaming service. In other words, we speak your language, everywhere.

MISSION

"Our Mission is to identify future technologies and market trends for wireless needs as well as to and develop new and innovative services and applications."

VISION

In this period where "THE MIDDLE MAN MUST ADD VALUE", we as a service provider, located between companies that offer means of communication and a market that needs to be in touch, would like to elevate that market participation from a passive involvement to an aggressive contribution, thus changing this business from a simple minute consumption into vital products and services.

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ORGANIZATION CHART

C.E.O

DIRECTOR SUPPORT SERVICE

DIRECTORBUDGETING &

PLANNING

DIRECTOR CORPORAT

AFFAIRS

DIRECTORTREASURY

DIRECTORCORPORAT

ACCOUNTING

DIRECTOR CREDITS &

COLLECTION

DIRECTORPROCUREMENT

DIRECTORLOGISTIC

DIRECTOR OPERATION

HEAD OF

DEPARTMENT

FINANCE DEPARTMENT

LOCAL FINANCE

MANAGER

OFFSHORE FINANCE MANAGER

ASSOCIAT SPECIALISTASSOCIAT

CASH MANAGEMENT

TRADE DEPARTMENT

LINE MANAGER

ASSOCIAT

LINE MANAGER

SPECIALIST

ASSOCIAT ASSOCIAT ASSOCIAT

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Company Objectives

Since 1994, when the Mobilink started its operation in Pakistan, it has been a pioneer in cellular industry.Entrants namely WARiD and Zong attacked Mobilink aggressively and forced it to adopt cut pricing strategies and come up with cheaper and cheapest packages and talk times.Mobilink in competition with Warid has lost its postpaid market share and Zong and Ufone has taken its prepaid customers.The most current objective of the company according is to retain long relationships with its current customers, bring the loosen customers back and to attract the customers of its competitors. It is therefore in the tagline of Mobilink Jazz, the company has emphasized on all three aspects NETWORK, QUALITY and RATES. The tagline is:"Network, Quality aur Rates Pe Koi Samjhota Nahin". Which means that the company is trying to provide quality service, in wide network edge at cheaper rates in order to attract non-users of mobile and current users of mobile and cellular services?

TOP MANAGEMENT

President and CEO Rashid Khan

Chief Strategy Officer Tariq Rashid

Vice President Marketing Bilal Munir Sheikh

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COMPETITORS OF INDIGO

Internal Competitor: Internal Competitor:

External Competitor:External Competitor:

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PRODUCTS

Mobilink offers both Pre-paid and Post-paid services. They offer tariff plans that are

exclusively designed to cater to the communication needs of a diverse group of people, taking

into account occasional users to businessmen. To achieve this objective, they offer both postpaid

(Indigo) and the prepaid (JAZZ) services to their customers. Jazz is an amazing prepaid service

that allows freedom from monthly bills and gives complete control over the customer’s cellular

expenditure. The user can decide in advance when and how much he wants to spend. He can load

a scratch card whenever he wants to and start talking. Jazz is simple, easy and loads of fun. not

only Indigo and jazz Mobilink have 13 more products given below,

Mobilink Indigo

Mobilink Jazz

Mobilink Blackberry

Mobilink PCO

Mobilink WiMAX

Mobilink TV

Mobilink Game ON

Jazz Cricket SIM

Conference Bridge

PSO Cards

PIA Reservations

Stock Watch

Fax Mail

Corporate SMS.

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MARKET SEGMENTATION

MARKET SEGMENTATION

Market segmentation is dividing a market into distinct groups of buyers who have distinct needs.

The market consists of many types of customer products and needs. The marketer has to determine which segments offer the best opportunities. Customers can be grouped and served in various ways based on geographic, demographic, psychographic and behavioral factors.

Following are the different segments of Mobilink:

Business class Ladies SME Sector Sports Flight Roaming

MARKET SEGMENTATION FOR INDIGO

Indigo caters business class with high resources, which is not concerned with cost and wants convenience; they are educated plus highly educated, professionals, have and A+ lifestyle that is they buy branded products (Food, clothes, phones, cars, etc).Market segmentation for Indigo comprises following:

Geographic

Initially Mobilink indigo was available in Karachi’s A+ residential and commercial areas like Clifton and Defense since it targets the upper class. But now it is available in all the provincial capitals and other business leading cities:

Abotabad Faisalabad Hyderabad Gujranwala Ismalabad Jehlum Karachi Lahore Multan Peshawar

Rahim Yar Khan

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Rawalpindi Sargodha Sialkot Sukkur

Demographic Segmentation

Following are demographic segmentation characteristics for Indigo:

Income Level: Segment with high income levelsEducation: Educated and highly educated classOccupation ProfessionalsAge: 25 and onwardGender Male and Female both

Psychographic Segmentation

Dividing a market into different groups based on social class, lifestyle or personality characteristics.

Mobilink Indigo targets upper social class that needs convenience since they are working professionals and have lessen time so they need a quick communication devices for both personal and business use.

Indigo not only makes business life easier but also adds a shining reflection to the lifestyles of its corporate customers.

Behavioral Segmentation

Dividing a market into groups based on consumer knowledge, attitude, use or response to a product.

Mobilink Indigo caters people who have

A high status A repetitive usage rate People who need a bundle of solution in one product

Loyal Customers (Since no one is providing an ultimate experience of post-paid so most of the customers have become loyal to Indigo).

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TARGET MARKET

The process of evaluating each market segments attractiveness and selecting on or more segments to enter.

Mobilink Indigo targets the Socio-Economic Class "A+" (SECA+) that is socio economic upper class.

Indigo targets the upper business class (corporate sector) that is not concerned with the cost but want convenience, quality and a brand image that suits their personality. Who does not want fun or music but want a brand that is "Competent" and Indigo is well satisfying the desires of its corporate customers.Introducing blackberry connect through which businessmen can take their offices anywhere, share attachments etc.That is why indigo customers are loyal to the brand and hesitate to switch to other connections. It can be said that indigo enjoys the benefits of a monopoly in the corporate sector due to its value-added services.

Warid has taken a huge share of Mobilink, but now it has introduced several attractive packages to hold its corporate customers.

POSITIONING

Positioning is the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.

MOBILINK

Mobilink’s catchphrase “Mobilink… Reshaping Lives” tells all about how they want to position the brand in the minds of their target customers.

The message they want to communicate to the consumer market is that Mobilink is the best solution for telecommunication and can be trusted to provide communication facilities all across the globe where no other service is available.

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POSITIONING OF INDIGO

As we hear word indigo we quickly evaluate that it is Mobilink, so Mobilink has very strong positioning in customer minds.

As for as Brand positioning is concerned, Mobilink has created an image of Indigo in peoples' minds on the basis of Quality of Connectivity and Convenience with Value added services.The tagline of Indigo "The Ultimate Postpaid Experience" focuses on value-added services that provide a new and delighting experience to corporate sector.It’s a bundle of solution for all the business activities from Blackberry to Conference Bridge. Indigo not only provides with the facility of communication but it also helps to transfer data (any type of data e.g. documents, pictures, videos etc).

Moreover a brand can be better positioned by associating its name with desirable benefits. Although word “Indigo” does not form a clear picture but it gives a sense of Classical, Sophisticated and Stylish brand.

BRAND PERSONALITY

Brand personality is set of human characteristics associated with a brand. Personality is how a bra-nd behaves.

Style, sophistication and a unique classy look has been attached with Mobilink's sub-brand in-digo.Indigo used models such as Zainab Qayum, movie stars like Shaan, and popular musicians such as Strings to infuse style into its branding. It also play-ed on the aspirations of young business professionalsthrough the atmosphere & the locales of Indigo’s ads.For instance, one ad showed Zainab Qayum communicating with Shaan on her BlackBerrywhile she played a round of golf.

Waseem Akram ,the famous cricketer has also beenUsed by Indigo in order to influence a higher class fromOverall the country.A reflection of style and sophistication is shown in the ad that creates a brand personality as Sophisticated and Stylish brand.

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MARKET ANALYSI AND SIZE

Pakistan mobile market hosts some of the world's largest and most experienced telecom companies including Orascom, Telenor (Norway), Warid Telecom (Abu Dhabi Group), China Mobile and Etisalat, a UAE based company. These companies have heavily invested in Pakistan to lay down the infrastructure and take mobile services to every nook and corner of the country. With the encouragement of Government of Pakistan and best efforts by the regulator as well as the determined mobile operators, the sector has recovered from slow growth of past few months. Nonetheless, there is escalation in mobile penetration up to 57.4%, as the total mobile subscribers have reached to 94.3 million, with more than 90% of the country having mobile service access.The reported year [2008-09] did not come out to be an exciting one as the financial strength remained invariable with revenues growing only by 16% and investments dropped by 48%.Although companies like Telenor and Ufone kept on investing more than their competitor operators. Out of all the 5 mobile operators, only Ufone registered profit of Rs. 1.7 billionduring 2008-09, and the rest of the companies recorded financial burden due to heavyrunning expenses including power expenses, rupee depreciations and employees'emoluments etc. For the first time ever, job cuts had also been announced by the operators.On a request by the PTA, the government, in the current budget, has provided tax relief to the sector where Activation tax has been reduced by 50% and import duty and regulatory charges on import of mobile handsets have been reduced by about 67%. Reduction in mobile termination rates by the regulator will also go a long way in improving the current economicsituation of the industry. MNP, which was introduced by the regulator two years back, isalso becoming popular as subscribers do not have to stay forcibly with one operator. The mobile operators including Mobilink, Telenor, Warid and Zong are also making effortsto provide their services in rural and interior areas of the NWFP and Balochistan.

Source: Pakistan Telecommunication Authoritywww.pta.gov.pk

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MARKET SHARE OF INDIGO

The Regional Marketing Manager of Mobilink Muhammad Rehman Abbasi excused providing us the market share statistics for Mobilink’s Strategic Business Units (that is Jazz and Indigo).But he ranked Mobilink Indigo Postpaid on Second (position).According to Mr. Abbasi in postpaid cellular services the cellular companies are ranked to market share as follow:

1 Warid Telecom: Warid is the market leader in Postpaid industry.

2. Mobilink Indigo: Indigo comes on 2nd position

3. Ufone Postpaid: Ufone Postpaid is on 3rd

4. Telenor Pakistan: Telenor Pakistan

INDUSTRY – MARKET SHARE OF THE CELLULAR COMPANIES

Source: www.pta.gov.pk

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http://www.pta.gov.pk/

PRODUCT - INDIGOProduct is anything that can be offered to a market for attention, acquisition, use or consumption that satisfy a want or need.

Mobilink re-launched its postpaid services on 11th May, 2004 under the brand name. Indigo. Mobilink Indigo is the most famous postpaid brand from Mobilink. It is known for its best quality assured services in Pakistan.

Indigo is positioned on family platform, offering a wide range of products catering to different needs.It comprises of a range of packages depending upon the usage rate levels such as Indigo initial and Indigo 400 supplementary packages combine postpaid life-style with economical ratesMobilink indigo ignited an evolution in the communication industry redefining the essence of post paid services in Pakistan. The brand delicately caters to the need of its customers symbolizing the vision of connecting the subscribers in every aspect of life.Indigo postpaid offers following services:

BUSINESS USERS

Indigo offers best services to its business users to maximize the speed of their businesses. With services like BlackBerry®, Internet Browsing, Fax, E-Mail, Stock Watch, On-Call Services and numerous others. Indigo makes sure that you can make timely and informed business decisions, always.

1. BlackBerry from Mobilink

Mobilink introduced BlackBerry Services in Pakistan in 2005 and provides unmatched after sales customer support. BlackBerry from Mobilink provides users with a secure, wireless access to a full suite of business and social networking applications including:

Push Email Phone SMS Internet Access Organizer Features

Social Networking – Facebook, G Talk, MSN Messenger Etc.

BlackBerry™ Solution consists of BlackBerry Handhelds integrated with BlackBerry Device Software that enables access to a variety of wireless data and communication services. BlackBerry handhelds allow the users to stay in touch with everything that matters while they are on the go including enhanced multi-media features all packed in one stylish device.

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2. Stock Watch

Now Indigo Postpaid customers can get continuous updates on their stocks listed on the LSE (Lahore Stock Exchange) or KSE (Karachi Stock Exchange) anytime through Mobilink's Stock Watch.The following three different options are available that can be subscribed to independently or in combination.

Hourly Alerts

Customers can subscribe to receive alerts of any three companies at KSE or LSE at a time of their choice to receive updates of the latest stock information (current rate, opening rate, etc.)

Price Movement Alert

Customers can select any three companies and specify minimum and maximum share price limits so that notification is sent to them whenever the trading price breaches the pre-defined barriers.

KSE/LSE Index Alert

Customers can subscribe to daily stock index (trading volumes, etc.) alerts when the market closes for the day.

3. Mobisafe

Mobilink shows care for the security of its business customers as much as they do. Through Mobisafe, users can now copy the contacts from their phone’s phonebook to Mobilink Server so that in case of Cell Phone theft, users can retrieve their contact details. Contacts can be upload via SMS or GPRS.

4. SMS Advertiser

Mobilink Indigo offers SMS Advertiser to all large scale businesses and organizations. Now you can send your message directly to your customers.

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SMS Advertiser can create one-on-one communication with your market. Today's consumers are mobile and today's marketing must reflect that.

5. Corporate SMS

Corporate SMS is an SMS Broadcast Application that enables corporate users to Send, Manage and schedule message broadcasts to multiple recipients on any mobile and land line number in Pakistan.

6. Fax Mail

Now Mobilink Indigo customers can send and receive faxes through their mobile phone.

7. PIA Reservation

This service allows the customers to know about PIA reservations and schedule timings.

8. PSO Cards

Indigo customers can refuel their vehicles on any PSO Station across the country by simply swapping their Mobilink Indigo Rewards Cards.

9. SMS Banking

Mobilink Indigo offers mobile banking (SMS Banking) solutions by joining hands with leading Banks of Pakistan to bring customers’ bank accounts at their finger tips.

Value Added On Call & Data Services

1. Conference Bridge

For the first time in Pakistan, Mobilink has introduced the ‘Conference Bridge’ Service for both postpaid and prepaid users. This service is ideal for reducing set up and gathering time for meetings as it brings geographically scattered workforce together in a conference without any hassle.

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Conference Bridge allows organizers to schedule conference calls with up to 25 on net and off net users. Subscribers of this service can also use the web conferencing features like

presentation and document sharing during the conference call. As the organizers sets up a conference call, all participants are informed about the date, time and dial in number & access code through an E-mail. Participants simply have to dial in at the time of the conference call to join in while on the go.

2. Call Forwarding

Call Forwarding or Call Diverting is the facility by which users can forward their incoming calls to other numbers. Users can also forward specific calls.

3. Missed Call Alert (MCA)

By activating this service, Mobilink Indigo users can know who called them even when their phone was turned off or wasn’t within the network coverage.

4. Voice Mail

Voice Mail is another great feature provided by Mobilink Indigo alternative to MCA. Users can leave a voice message for his/her callers. After the beep, the callers can leave their voice messages.

5. GPRS/EDGE

The internet service on cell phones is faster than ever and Mobilink is the leading one in providing cheaper and best services for its customers.

EDGE is a new service by Mobilink Indigo which enhances the browsing experience of its users by doubling the internet speed.

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PRICEPrice is the amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.

MOBILINK INDIGO

1. SKIM PRICING STRATEGY

2. PENETRATION PRICING STRATEGY

Since it is launched in May 2004,, Mobilink indigo followed a skim pricing strategy that is to focus on those customers with high values and incomes. Skimming the cream from the top of the telecommunication market. At start Mobilink indigo used to sell their indigo connection at the highest price and used to charge the highest line rent and without offering any attractive packages.However the dynamics of the telecommunication markets have changed a lot, because of the new entrants Warid and Zong. These new entrants used a Penetration Pricing strategy to generate lots of sales, at a lower price and capturing a large number of cellular service users in a short span of time.In order to defend its market share now Mobilink indigo has adopted the penetration pricing strategy. Now it not only offers attractive call packages but also offers cheaper and free SMS bundles to its customers.Following are the Tariff Plans of Mobilink Indigo:

ONE HUNDRED

If you want to enjoy postpaid privileges with the least amount of line rent, this package is for you.

Details Tariffs

Line Rent Rs. 100

Free Minutes 100

Call Mobilink Rs. 1.25/min

Other Operators Rs. 1.50/min

SMS All Networks Rs. 0.2

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FOUR HUNDREDFor those who want to spend less and talk more. Postpaid affordability comes into play with i-four hundred. Details Tariffs

Line Rent Rs. 400

Free Minutes 400




NINE HUNDREDAn ideal package if you are seeking a blend of value and economy. A package that not only gives you more FREE minutes, but also FREE GPRS usage

Details Tariffs

Line Rent Rs. 900

Free Minutes 900

Free GPRS 100MB




FIFTEEN HUNDRED

For the best call rates and utmost value for money. This package features 1500 FREE minutes and even more FREE GPRS usage – so you can enjoy sheer comfort in making strong connections.

Details

Line Rent Rs. 1500

Free Minutes 1500

Free GPRS 250MB

Mobilink Rs. 0.50/min


All Networks Rs. 0.50

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UNLIMITED

For power users who want to live the connected dream. Bundled with maximum free minutes, free data services and the best call rates; i-unlimited has all what it takes to be the choicest tariff plan for extensive usage

Details Tariffs

Basic Premium

Line Rent Rs. 5000 Rs. 6000

Free Minutes Mobilink 2800 2800

Other Operators (Mobile) 1200 1200

Other Operators (Landline) 1000 1000

Free GPRS / VAS / Blackberry Internet Service

- unlimited

Free SMS Mobilink 1000 1000

Call Mobilink Rs. 0.30/min Rs. 0.30/min

Other Operators Rs. 1.05/min Rs. 1.05/min

SMS All Networks Rs. 0.20 Rs. 0.20

MOBILINK INDIGO FREEDOM PLANS

Mobilink indigo offers a variety of freedom plans, these plans are given as follow:

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Place

Marketing Network

During the last 13 years, Mobilink Indigo has set up one of the largest cellular networks in the country. Currently, Mobilink Indigo is covering more than 5000+ cities and towns. This has involved an investment in the company of more than US$ 1 Billion. Mobilink Indigo have 50 Switches and more than 4,900 cell sites and the number keeps growing at a rapid pace. Mobilink Indigo also have deployed around 3,000 km of optical cable.

For Mobilink Indigo, last year was a bit difficult as they struggled to grow as quickly as the market itself. Today mobilink Indigo is confident that it has all the essential building blocks in place to take the dream forward and to play a leadership role in the rapid growth and development of telecommunication industry in Pakistan.

In 2003 Mobilink Indigo invested upwards of US$ 200 million in improving their network and services. Mobilink Indigo have already put in 7 switches, over 820 cell sites and new IN platforms for better coverage and connectivity. In upcoming years mobilink indigo is trying to invest in technological upgrades, superior customer services, and improved coverage.

Mobilink Indigo customers remain their priority and in an effort to enrich their lives Mobilink Indigo have put in place state-of-the-art call centers in Karachi, Lahore, and Islamabad and in other cities of Pakistan where well trained staff is geared to answer complaints and queries, and a new billing system is in the process of commissioning. Mobilink Indigo is constantly expanding their nationwide franchise and distribution network and upgrading them to offer customer services so that the customers can find a Mobilink Indigo contact as near to them as possible.

Coverage

Mobilink Indigo provides the widest coverage network, covering more than 5000+ cities, towns, and villages across Pakistan. It connects over 24 million family members every second of the day with exceptional voice quality due to its broad coverage. The coverage is expanding day by day, and it is claimed by the management that soon the only other thing covering Pakistan more than Mobilink Indigo would be the clear blue sky.

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Nationwide coverage

Mobilink Indigo provides true nationwide coverage in more than 5000+ cities, towns, and villages across Pakistan. Mobilink Indigos provide its services in urban areas as well as towns and villages. In nation wide Mobilink Indigo provides services in following areas.

International Roaming of Mobilink: Along with nationwide coverage, Mobilink also provides true International Roaming in over 100 countries with more than 300 partner operators worldwide. The regions where Mobilink provides International Roaming are as follows. Mobilink roaming partnership with Thuraya has further enhanced international roaming coverage. Through satellite communication the Mobilink connection can be used in areas where there is no GSM coverage.

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United States Canada Caribbean Europe Middle East Africa Australia

Distribution Channels of Mobilink IndigoMobilink Indigo provides its service products directly to customers or with help of intermediaries involved in distributing its product. Distribution channel contain set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business users. Mobilink Indigo also distributes its product to end user with help of intermediaries as well as it distributes its product directly to customers. Mobilink Indigo supplies its product range to intermediaries with involvement of its “Commercial and Sales Department.”

Mobilink indigo deliver its Sims to customer with help of Franchises, service centers, and sales offices. These Franchises, service centers, and sales offices are given by the right of providing its service product by Mobilink Indigo itself.

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PromotionCompanies can do more than make good products—they must inform consumers about product benefits and carefully position products in consumers’ minds. To do this, they must skillfully use

the promotion tools of advertising, sales promotion, public relations, sales force, direct marketing, and personal selling.

Advertising Goal

The chief advertising goal of Mobilink is to increase its customer base and to stimulate more usage.

Mobilink is currently using:

FOR MOBILINK INDIGO

Reminder Advertising: To stimulate the repeat purchase of its Mobilink Indigo brand.

Information Advertising: To create brand awareness and knowledge of its Mobilink brand.

Advertising Media

Mobilink is using television, print, and radio advertising media to disseminate mobilink Indiogo’s message and to build a brand preference but the most preferred is television since this medium is the most powerful, reaches a broad spectrum of consumers and has the maximum customer impact.

Radio and F.M Radio: It has a relatively large listeners’ base and so is an effective way to communicate the message.

Billboards and Print Media: The Company has come up with elaborate campaigns, billboards and posters to promote Indigo, their post-paid brand.

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Advertising Campaigns

The advertising theme “Mobilink Indigo: It’s simply a way to communicate”, is designed to demonstrate the new services’ for corporate sector and convenience for its users.

In its Indigo campaign, Mobilink has made a conscious effort of strongly placing it on the “image” platform and mapping it in the prospects mind making it a prestigious brand. Interestingly, it re-enforces Mobilink’s early perception of being the brand for the image conscious (peer leader) which gives the impression that Indigo is an ‘enhanced’ step further in this direction.

Sales Promotion

Mobilink uses different types of sales promotion method such as:

Consumer promotions

In order to kindle greater and quicker purchases Mobilink is carrying out the following consumer promotion activities including special deals such as:

Indigo Freedom Plan: this deal offers certain benefits of which two are:-

o Friends & Family: This feature is available to the customers on any three Mobilink numbers (Jazz and Indigo) which can be added into F&F list by calling the help line at 111.

o Local Rates: According to this freedom plan across Pakistan, all call, across all networks are charged as local calls.

Bonuses & Free Airtimes: Mobilink has been offering a number of bonuses to its consumers.

Online Ads and Promotions

Online ads and promotions tools such as banners ads and search related ads are being used by Mobilink GSM. These ads are placed on targeted and frequently viewed websites. Banners are also placed on related websites such as those which support web to SMS. For example “smspk.net”

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Mobilink’s Sales Force

Sales force serves as the companies personal links to the customers. Mobilink fast paced growth is fueled by the foundation of innovation and the relentless work of 4000 dynamic team members.

The sales force members are some of the best talent in the country and can be distinguished from others on the basis of their convincing power. The have the passion and the spirit to challenge the norms, and so they are the part of winning team.

Sales Force Objective:

The chief objective of Mobilink’s sales force is not only to encourage sales but also to diagnose customer’s problem and to propose an effective solution thus satisfying them completely. They play a strong role in improving customer profitability.

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CRTICAL ANALYSIS

SWOT ANALYSIS OF MOBILINK

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

Strengths

Competitive Advantages

Mobilink’s strength lies in the establishment of a strong, fundamental and coherent long-

term business plan, designed to sustain economic challenges in the country.

It has invested heavily in infrastructure, technology, human resources and customer

services which have given impetus for a broad-based future planning strategy. It further is

investing US $ 500 billion in Pakistan to develop its infrastructure. Therefore it has the

competitive advantage of making huge investments in Pakistan which no-one else had

made before regarding telecom.

Pioneer cellular service in Pakistan to provide coverage on the M2 motorway.

Pioneer in GSM service in Pakistan.

With 30 million customers Mobilink is truly called the “King of cellular service

providers”.

Mobilink has the highest market share of 37 % not only in terms of number of subscribers

but also in terms of revenue.

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Large number of corporate customers use Mobilink post paid connection Indigo and

Mobilink’s Blackberry handsets.

Mobilink and Muslim Commercial Bank have made a combined effort in order to

maximize the ease and the satisfaction of their respective customers by offering them all

banking services from their very own mobile handset.

Resources, Assets and People

Being a multinational company Mobilink has huge resources in terms of capital. It has

billions of capital to invest in various projects. Its offices are luxuriously equipped with

every facility.

Mobilink while choosing people for jobs follow the strategy of “choosing the best among

all” therefore majority of its staff people are highly qualified from renowned universities

of Pakistan. A certain percent is foreign qualified as well.

Innovative Aspects

Mobilink brought innovation in Pakistan by offering “First GSM Network Connections”.

Previously instaphone was operating with old technology

Mobilink is the pioneer in Mobile Commerce services as well. Previously no other

company had made such an effort.

The concept of post-paid and prepaid was also introduced by Mobilink.

Location and Geographical Coverage

Mobilink is the first cellular service which covered the northern and other remote areas of

Pakistan such as Muzzafarabad, Chitral, Kaghan, Naaran and Kaalaash.

It is the achievement of Pakistan’s First GSM service Mobilink to widespread its network

across whole Pakistan. Now the theme line of Mobilink is “Poora Signal Poora Pakistan”

Wherever you go wherever you are, you’ll never have the message of “No service” with

Mobilink connection.

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Government Dealings

Mobilink pays a huge amount in taxes to the government of Pakistan. So it’s a big source

of revenue to the government as well.

It conducts its business by abiding by the rules and regulations setup by the government

and cooperates with the government in every aspect.

Weaknesses of Mobilink

Less Investment Although Mobilink is covering whole Pakistan but its call rates are high and network

quality is poor. These are the two major issues which brought Mobilink’s share down to

37% in 2008 from 60% in previous years.

Fewer advertisements now days show that Mobilink is taking out its investment from

marketing &its advertising is not active up to the mark. However if we compare it with

Telenor, Zong and Warid we’ll realize that they are heavily marketing their products.

Quality of Network Mobilink must have planned very good network quality but the results are opposite as

described below.

Mobilink’s network mostly remains busy in thickly populated cities such as Karachi,

Lahore and Multan so people face a lot of difficulty while trying to connect to their

friends and families. However Warid’s network provides crystal clear voice quality. So

many of Mobilink’s customers (including me) have shifted to Warid.

Mobilink has been fined twice by Pakistan telecommunication Authority over its bad service. It must try and emphasize on providing better services to its customers instead on concentrating only on expansion.

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Opportunities of Mobilink

Developments Mobilink can develop a stronger market by focusing on segments such as teenagers,

adults, office workers, girls and ladies as well as old people by offering innovative

packages. These packages could be offered keeping in view the time consideration as

well as pocket of each segment. These packages could be at low cost for teenagers and

grand parents as their pocket is small but could be little expensive for the rest.

Through proper advertisement also Mobilink can target as many customers as it can in

order to augment and give support to its falling market share.

Mobilink can lower its call rates, SIM charges, Mobitune charges, GPRS charges and

other extra charges in order to capture a larger market to make business difficult for rival

companies. In this way it can segment a larger market and may capture the customers of

low income group as well.

Threats of Mobilink

A New Market Player, Zong

A new market player i.e. Zong is getting immense popularity among teenagers and

youngster students because of its very low call rates and attractive packages. It is

expected from the mushroom growth of its customers that it will soon capture a large

market share hence if Mobilink keeps its call rates high it is expected that a large percent

of young Mobilink users will switch over to Zong.

Better Packages by Other Cellular Operators

Companies like Telenor offer better packages for corporate customers. Telenor Postpaid

connection “Persona” is a good example of it.

Wireless local loop (WLL) service providers are also targeting areas which are less developed.

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Price Wars

Current price war among cellular service providers may reach at a position where only

brand names survive.

Unreasonably Restrictive Trade Practice

Mobilink is involved in an unreasonably restrictive trade practice, prohibited under the

provisions of MRTPO, 1970 by not allowing its blackberry subscribers to other service

providers. This can lead to legislative proceedings against Mobilink.

Concluding, it is analyzed that Mobilink has a number of strengths which could be utilized to

avail the opportunities & overcome its weaknesses. However, as threats to an organization are

always external therefore they cannot be eradicated however they could be handled efficiently to

minimize the unforeseen problems.

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BCG GROWTH SHARE MATRIX

Companies that are large enough to be organized into strategic business units face the challenge

of allocating resources among those units. In the early 1970's the Boston Consulting Group

developed a model for managing a portfolio of different business units. The BCG growth-share

matrix displays the various business units on a graph of the market growth rate vs. market share

relative to competitors.

On the vertical axis, market growth rate provides a measure of market attractiveness. On the horizontal axis, relative market share serves as a measure of company strength in the market.

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The growth-share matrix defines four types of SBUs:

Cash Cow-(Low Growth, High Market Share)

A business unit that has a large market share in a mature, slow growing industry. Cash

cows require little investment and generate cash that can be used to invest in other business units.

Star -(High Growth, High Market Share) A 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 require investment to maintain

their lead. If successful, a star will become a cash cow when its industry matures.

Question Mark-(High Growth, Low Market Share) A business unit that has a small market shares in a high growth market. These

business units require resources to grow market share, but whether they will succeed and become

stars is unknown.

Dog-(Low Growth, Low Market Share) A business unit that has a small market shares in a mature industry. A dog may not

require substantial cash, but it ties up capital that could better be deployed elsewhere. Unless a

dog has some other strategic purpose, it should be liquidated if there is little prospect for it to

gain market share.

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MOBILINK SBU – GROWTH SHARE MATRIX

STAR Mobilink Jazz is a star SBU for Mobilink which has been generating highest share in

growing prepaid industry.

CASH COW

Mobilink Indigo is cash cow SBU for the company where it generates lot cash in a low growing

post-paid industry.

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RECOMMENDATIONS

We have a lot of suggestion for the company. Some of them are:

Mobilink Indigo follows a differentiation strategy. If it wants to grow in this market and rise above its competitors, it should also follow low cost strategy through it can reach to more people and comfortably increase its market share.

Mobilink has been fined twice by Pakistan telecommunication Authority over its bad service. It must try and emphasize on providing better services to its customers instead on concentrating only on expansion.

Further it does not have any promotional offerings that would attract customers. For example, in the previous year, Ufone offered free connections to the masses and Telenor had offered SMS service within its Network in summer 2005. If such measures were implemented, they would increase its brand name and add value to the organization.

The procedures for getting an Indigo connection are too much complex and time-consuming so Mobilink needs to develop quick procedures in order to attract more customers.

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REFERENCES

Formal Interview from Muhammad Rehman Abbasi.( Regional Manager Marketing – Operation-South)

Mobilink House 7th Floor,44-A, Block-6, P.EC.H.S, MainShahra-e-Faisal KarachiPakistan.

INTERNET SEARCH

www.mobilinkgsm.com

www.mobilinkworld.com

www.pta.gov.pk

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MOBILINK INDIGO A PROJECT REPORT

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