Market Plan on Vodafone vs. Pakistani Operators

Market Plan on “VODAFONE”

Marketing Plan on Vodafone

We aim customer satisfaction

Submitted to: Miss Soofia Waleed Submitted by: “The Intellectuals”

Course: MBA (spring)Semester 1st

July, 2006

Referred by:

Research by: “The Intellectuals” 1


Group Introduction:

Group Name: “The Intellectuals”

Group Slogan: “Intellectuals, in touch with tomorrow.”

Group Leader:Name: Rabia Allamger Roll # 6332

Group Coach:Name: Aisha Sajjad Roll # 6360

Group Members:Name: Khuram Ekhlaq Roll # 6348Name: Sundas Iqbal Roll # 6356Names: Saba Naseer Roll # 6371Name: Waqas Roll # 6316



Acknowledgement

Above all the praise goes to ALMIGHTY ALLAH with whom all the sovereignty lies, who bestowed us the essence of knowledge and the sight to differentiate

between the right & wrong. By the grace of Allah we have completed this project

successfully.

We will greatly like to thank our kind and committedteachers Mrs. Sofia Waleed who gave us such type of activity to

enhance our knowledge. And Sir Asif who always ready to share their knowledge and helped us in every regard.

Thank you All.



Dedication

Our dedication goes to the one, who is the Most Beneficent, The Most Merciful (ALLAH),To our Parents & Teachers.



Vision

“Passion for the world around us”

Our mission is to be the provider of high value, high quality, and convergent cellular company worldwide. These scalable solutions will have unparalleled support to ensure flexibility and to meet and exceed customer expectations. Our mission is not to earn profit but retain the customer for the long period of time. Our Vision and Values guide the way we act. Our Vision is to be the world’s mobile communication leader – enriching customers’ lives, helping individuals, businesses and communities be more connected in a mobile world.

Our Values are about how we feel – in other words the Passions that make us the company we are.



1) Executive Summary

The plan is about the new cellular company that will launch in the Pakistan named “VODAFONE” in January 2007...

Vodafone is the package of services that we are going to introduce in the Pakistan. We have made our product more compatible as compare to the other existing companies. We have competitive edge with the Value added services. We are offering more powerful network coverage to our customers. We have less price product in the cellular market. So it can give us the competitive edge as compare to the other companies. We divide the market into different segments. And we have made our strategies according to our targeting segments. We defined that we will advertise our product according to the targeted segments.

Our competitors already have the big market share, that’s why our strategies are very strong. We want to achieve the (50%) growth rate.

We explained the marketing strategy and explain all target market and all other necessary parts of the marketing strategy. Then we explained marketing mix and objectives and all other environmental changes. In the end expected budget we have explained. And in the end all controls have been described. This includes management, finance and all other authorities and departments in control.



Our objectives that we defined in the market plan are retained & satisfy the customers. We will provide them the best services.



Contents

Topics Page no

2) Current Marketing Situation 8 2.1.) Market Description 8

2.2) Product Review 10 2.3) Competitive Review 12 2.4) Distribution Review 23

3) Strength, Weaknesses, Opportunities, and Threats, Analysis 23 3.1 Strength 23 3.2 Weaknesses 26 3.3 Opportunities 26 3.4 Threats 27

4) Objectives & Issues 29

5) Marketing Strategy 30

5.1 Positioning 31 5.2 Product Strategy 31

5.3 Pricing Strategy 33 5.4 Distribution Strategy 34

5.5 Marketing communications Strategy 35 5.6 Marketing Research 36 5.7 Marketing Organization 39

6) Action programs 41

7) Budgets 43

8) Controls 46



2) Current Marketing Situation:

Vodafone is a new launching product in the market. Cellular company is the fast growing industry in Pakistan. It has large scope due to this advantage it can expand with success. The increasingly competitive telecommunications market, both wire line and wireless, has increased carriers' awareness of the importance of this industry. As a result, companies are investing millions of dollars in the Telecom industry.

Most of the Groups predict that the Vodafone market will grow to almost 600 billion worldwide in coming years. Vodafone Targeted segments Professionals, Students, Household Women, Layman (labors, Teenagers), Corporate Users, Entrepreneurs, and Medical Users. These markets will play the vital role in terms of growing. Vodafone will provide the real time access to their targeted markets. Their customer service representatives can better respond to customer needs in a timely and efficient manner. And it will be the part of the strategy to retain & satisfy the customers. Expected growth rate from the Vodafone is 50% within one year. To develop the markets share in this competitive environment. Vodafone must carefully target specific market segments.

2.1) Market Description

Targeted Segments Customer need Features Promotion strategy for Targeted Segments

Professionals Stay in touch with every one, Sharing information,

postpaid package, Conference callCall Hold & Call WaitingCall DivertShort Messaging Services, Voice mail.

Advertisement on Internet

Students Low call rates Prepaid package, SMS on low rates

Personal selling, sponsor to the different activities( Cricket Matches, Painting Exhibition)

Household Women Entertainment Vodafone Zone (Entertainment & show biz news)

Advertisement through television

Corporate Users Transfer data & Stay in touch with others. News information.

Postpaid package, MMS, email

Advertisement on Internet



Entrepreneurs Want to know about their schedules, easy access.

Reminder, Postpaid package, MMS, email, Live News

Advertisement on Internet + Hoardings

Medical Users Exchange latest information with others.

Live News, Send the favorite information to the others networks.

Hoardings + Retailers + Advertisement on Internet

Vodafone Targeted segments Professionals, Students, Household Women, Layman (labors, Teenagers), Corporate Users, Entrepreneurs, and Medical Users. Vodafone will provide the latest information and highest care to their targeted segments. Vodafone has the features that are actually required to their potential customers. We will make our product more live and real. That’s why we will provide all that features those are the necessity of our potential customers.

At this time we are plan to just introduce our product with the best promotion. (But we are planning for delight the customers through the low price and packages as compare to the competitors. We have planned to increase our targeted segmentation because we want to perform services in the whole cities of Pakistan. In the whole segmentation, we will want to perform services for the youngsters.


Students

Labor

Lay man

Business Sector

Graphical Representation of target market


To implement on these Packages we will increase the satisfaction & convenience level among the Customers.

2.2) Product Review:

Vodafone Group was established in the UK in 1983 and has equity interests in 27 countries over five continents, and partner networks in a further 31 countries. As at 31 December 2005, Vodafone had a proportionate customer base of 179.3 million customers around the world.

Vodafone has developed an open and flexible product platform from which it can expand. The current product portfolio includes:

PRICE: RS.145 with RS. 100 free balance

Prepaid Package: (Gladden)

Call rate: Rs. 1.35 + tax from Vodafone to VodafoneCall rate: Rs. 2.75 + tax on other networks

Sms: Rs.1.00 + tax on VodafoneSms: Rs. 2.00 + tax on other networksInternational Sms: Rs 3.45 + tax

Cards Price: 40, 100, 300, 600, 1000.

Straightforward load: Rs. 50


Prepaid Package

Packages

Postpaid Package


Post paid Package:

1: Gossip

Line rent: Rs 130 Free 17 Sms Power tools Sms Rs. 1 International Sms Rs 2

2: Ease


3: Zenith

Call rate: Rs. 1 on Vodafone + 50 minute call free Line rent: Rs 450 Free 25 Sms Power tools Sms Rs. 1.25 International Sms Rs. 5

Features:

Basic ServicesCaller line identificationConference callCall Hold & Call WaitingCall DivertShort Messaging Services

Value Added ServicesVoice MailPicture Messaging & Multi-media Services (MMS)Surf Now [Mobile Internet]75K SIMVodafone Zone



Competitive Edge:We are introducing where I am (Package). In which you can know that where are you at this time. This package can locate you whole. It will tell you what is the city name, street name in which you locate.

It will show you the map of Pakistan.

PROFIT IN 1 st YEAR

Profit in first will be 2400,000, based on sales of Vodafone 20,000 units at a whole price of RS. 120.

2.3) Competitive Review

Mobil ink, Warid, Telenor, Paktel and Ufone are the big competitors of Vodafone. Because they have already got a big market share. Their positioning and targeted segments are very strong. They are playing a vital role to run the cellular industry in Pakistan. Their targeted segments are the professionals, Teenagers, Students, Businessman, Household Women, Executives, and laymen. These cellular companies have the same type of product features but they are competing with each other on the price setting matter. Second basic reason is their Network coverage. How compatible their product is?

*Product Mobil ink

At this time Mobil ink has a biggest market share (50%) due to its vast network coverage. This product is connection base. Design and style of the product is very simple but quality is good. Our customer is satisfied and our market share is better than others. Our product growth is growing with the passage of time and we try to lunch our product in cities, towns, villages, and northern areas of Pakistan. Our main competitor is Warid telecom. Threat) Price: RS.150 with the 182 free balance.



Prepaid Package:

Call rate: Rs. 2.35 + tax from jazz to jazzCall rate: Rs. 4.75 + tax on other networks

Sms: Rs.1.00 + tax on JazzSms: Rs. 2.00 + tax on other networks

International Sms: Rs 4 + tax

Cards Price: 40, 100, 300, 600, 1000.

Easy loadRs. 50 to onwards

Post paid Package: Freedom 1: Line rent: Rs 150 Free 15 Sms Power tools Sms Rs. 2 International Sms Rs 4

Freedom 2:




Freedom 3:

Call rate: Rs. 1 on Jazz + 50 minute call free Line rent: Rs 500 Free 20 Sms Power tools Sms Rs. 1.25 International Sms Rs. 3

Freedom 4:

Call rate: Rs. 1 on Jazz + 100 minute call free Line rent: Rs 1500 Free 20 Sms Power tools Sms Rs. 1 International Sms Rs. 2.35

Procedure of Price Setting: The tax is not included in the final price but included only in over all cost. Competitor play main role in price setting when they change their packages, then we have to change our packages.

PLACE: This product is available now in 390 cities and towns of Pakistan.

Procedure of Distribution:

Head office:Main franchise: (Distributor)Sub Franchise: (Retailer)Ware houses:Small Shops Strategy and Plan about providing the product in every area of Pakistan:

PROMOTION:

Actually promotion is a first step when we produce a product. But we make it strategy in last.

Procedure of Promotion:

In promotion our main objective is to guide and convince the customer through;Awareness



KnowledgeLikingDecisionPurchase

Main Sources of Promotion: Media Electronic Media HoardingsNewspaperUniversity students

*Warid Telecom

After Mobil ink, we can say that Warid telecom is the successful cellular company because they are advertising the product on the high level. Warid has 10% market share in this minimum time. They have satellite base product. Design and style of the product is very simple but quality is good. Our customer is satisfied and our market share is better than others. Our product market share and market growth are increasing with the passage of time.Our plan is not to earn but to increase market share. To satisfy and retain the customer through better services. Our main competitor is Mobil ink. (Threat)

Price: Rs. 250 With Rs.100 balance

Prepaid Package:

Call rate: Rs. 2.75 on Warid Call rate: Rs. 4.75 on other networks

Sms: Rs. 0.50 on U foneSms: Rs. 2.00 on other networksInternational Sms: Rs. 5

Cards Price: 100, 250, 500, 1000

Post paid Package:

Package 1:Call rate: Rs. 2.00



Line rent: Rs 00Free talk time: 00 minFree Sms: 00International Sms Rs. 4Advance payment: Rs.1000Friends & Family members: 5

Package 2:Call rate: Rs. 1.75Line rent: Rs 150Free talk time: 60 minFree Sms: 15Free MMS: 3International Sms Rs. 4Advance payment: Rs.1000Friends & Family members: 10

Package 3:Call rate: Rs. 1.50Line rent: Rs 500Free talk time: 240 minFree Sms: 50Free Mms: 5International Sms Rs 4Advance payment: Rs.1500Friends & Family members: 20





Package 6:Call rate: Rs.50Line rent: Rs 2500Free talk time: 1200 minFree Sms: 100Free MMS: 10International Sms Rs 4Advance payment: Rs.3000Friends & Family members: Unlimited

Procedure of price setting:

The tax is included in the final price. Competitor play main role in price setting when they change their packages, then we have to change our packages. PLACE: Our product is running now in 230 cities and towns in Pakistan.

Procedure of Distribution: Head officeMain franchise (Distributor)Sub Franchise (Retailer)Ware housesSmall Shops

PROMOTION:

We spent a lot on our promotion to compete the Mobil ink and we promote through different types of activities Hockey match. Sponsorship a comedy play for Promotion.


In promotion our main objective is to guide and convince the customer through;AwarenessKnowledgeLikingDecisionPurchase.

Main Sources of Promotion: Media Electronic Media



Hoardings.NewspaperUniversity students

*Product Ufone

Ufone has 25% market share. Their product is connection base. We are planning to lunch our product in northern areas. Our main competitors are Mobil ink & Warid. (Threat)

Price: Rs.200 with Rs. 150 balance free

Prepaid Package: Call rate: Rs. 2.50 on U fone From 7 am to 10 pm & 1.50 From 10 pm to upward. Call rate: Rs. 2.50 on other networks

Sms: Rs. 0.50 on U fone Sms: Rs. 1.00 on other networksInternational Sms: Rs 4

Cards Price: 100, 250, 500, 1000

Call rate Rs. 1.00 on 4 U fone and 1 PTCL number.

Post paid Package:

Call rate: Rs. 1.00Line rent: Rs 200Power tools Sms Rs. 2.50International Sms Rs 4


The tax is not included in the final price but included only on over all cost. Competitor play main role in price setting when they change their packages, then we have to change our packages.

PLACE: Our product is running now in 230 cities and towns in Pakistan.




Head office:Main franchise: (Distributor)Sub Franchise: (Retailer)Ware houses:Small Shops

PROMOTION:

We spent a lot on our promotion to compete the Mobil ink and we promote through different types of activities to sponsor a Hockey match & a comedy play.



Main Sources of Promotion: Media Electronic Media Hoardings.NewspaperUniversity students

*Product Telenor

Telenor has 8% market share. This product is connection base, actually it is a service. Design and style of the product is very simple but quality is good. Our customer is satisfied and our market share is better than others. Our product market share and market growth increasing with the passage of timeSoon our product will be the best cellular service of Pakistan. Our main competitor is Mobil ink, U fone, Warid. (Threats)



PRICE: RS. 225 with RS. 150 free balance.

Prepaid Package:

Call rate: Rs. 0.75+ tax on Telenor Call rate: Rs. 1.25+ tax on other networks

Sms: Rs. 0.75 on tele nor Sms: Rs. 1.25 on other networks International Sms: Rs 4

Cards Price: 100, 250, 500, 1000

Easy load: From Rs. 10 to 10,000


The tax is not included in the final price but included only on over all cost. Competitor play main role in price setting when they change their packages, then we have to change our packages.

PLACE: Our product is running now in 160 cities and towns in Pakistan.


Head office Main franchises (Distributor)Sub Franchises (Retailer)



Small Shops

PROMOTION:

We spent a lot on our promotion to compete the Mobil ink and we promote through different types of activities to sponsor a Hockey match & a comedy play.Procedure of Promotion:



*Product Paktel

Paktel has 7% Market share. It has bad network coverage problem. Their call rates are also effective for their customers.


Head officeMain franchises: (Distributor)Sub Franchises: (Retailer)Small Shops



PROMOTION:

We spent a lot on our promotion to compete the Mobil ink and we promote through different types of activities to sponsor a Hockey match & a comedy play.




Competitor Product Features PriceMobil ink Sim (Services) CLI, conference call, Call hold

& call waiting, call divert, SMS, Value added services. Postpaid, Prepaid. Jazz octane

RS.150

Warid Sim (Services) CLI, conference call, Call hold & call waiting, call divert, SMS, Value added services. Warid Zone.

RS.250

Telenor Sim (Services) CLI, conference call, Call hold & call waiting, call divert, SMS, Value added services. Postpaid, prepaid. Talk Shalk.

RS.225

Ufone Sim (Services) CLI, conference call, Call hold & call waiting, call divert, SMS, Value added services. Postpaid, prepaid.

RS.200

Paktel Sim (Services) CLI, conference call, Call hold RS.100



& call waiting, call divert, SMS, Value added services. Postpaid, prepaid. Hi tunes

2.4) Distribution Review

Vodafone will be distributed through a network of selected stores and non store retailers in the top stores of Pakistan. Among the most important channel partners are being contracted.

Distribution Channels:

Gift shopsSuperstoresMain franchises: (Distributor)Sub Franchises: (Retailer)Small Shops Whole salesPersonal sellingOnline retailersElectronic specialty stores

Although distribution will initially be restricted in the few popular cities but after six months we are plan to expand our Vodafone (product) in the northern areas of Pakistan. We will emphasize trade sales promotion in the first year. We have also plan to retain & satisfy the targeted market for providing them the better in low price services.

3) Strength, Weaknesses, Opportunities and Threats, Analysis

In the SWOT analysis that follows, Vodafone Telecom Company maintains a healthy position. Our Packages has substantial strengths to balance out weaknesses. Market opportunities for the cellular industry are very strong and big. Competitive threats are becoming more of an issue as key competitors’ ramp up for new opportunities and other new competitors are entering the industry.

3.1 Strength



The strengths of cellular communication include wide coverage, small mobile units, low cost, high functionality, and the ability to integrate voice and data on the same network. Wide coverage allows mobile users to communicate and to manage their business from almost anywhere in the Pakistan. A major capability that allows this mobility is the fact that cellular coverage encompasses over ninety-five percent of the Pakistan population. Small mobile units may fit into a pocket or pocketbook and can be taken almost anywhere. Service costs may be low. When considering the tangible and non-tangible benefits an organization may receive. High functionality gives users access to many applications such as using mobile units safely while driving, retrieving their voice mail and electronic mail, logging onto a remote mainframe, or even using point-of-sale devices. Although there are other technologies that may achieve these goals, cellular is the only technology with these features that are readily available and cost effective today. For example, PCS promises to offer similar services as cellular, but nationwide networks will not be operational and widely deployed until late 1996 (Thyfault, 1995). Satellite networks also offer this capability, but many of the networks will not be deployed until 1998.

Vodafone Telecom has developed technical strengths in the following areas:

Design and development of computer applications on UNIX and NT platforms using languages such as C, C++, and Java and user interfaces such as PowerBuilder and databases such as Oracle and Sybase. Expertise in client server based application software including multi-tier application software development, using object-oriented methodologies. Expertise in networks programming on UNIX and NT platforms. Domain expertise in the area of SS7 signaling and GSM protocol layers. Design expertise on object oriented methodologies and three-tier client server applications. Requirements engineering and requirements management. Project management and project tracking.

WHY USING VodafoneHigh Speed:

The digital wireless network is capable of achieving high speed. There is no realistic comparison. Vodafone is simply the fastest means of accessing the connection.

Dedicated Connectivity:



The customer's connection to the Vodafone is dedicated, meaning the connection is always available, 24 hours a day, 365 days a year. No busy signals, no waiting to get online, and no varying connection rates. Always on, and always fast.

Security:

Wireless equipment uses a form of encryption called Wired Equivalent Privacy Algorithm (WEP) to scramble data sent to our network. This ensures your data will not be decipherable in the unlikely event eavesdroppers are able to intercept your wireless transmissions.

Reliability:

With other types of connections such as DSL, cable, leased lines, and frame relay, there is always the chance of a router, CSU/DSU, or repeater failure, or the all too common problem of failure due to the phone company or a construction crew cutting phone lines in your area. Since we provide the connection end-to-end, the chance of failure is almost nonexistent. In addition, weather and atmospheric conditions are not a concern.

Costs:

Vodafone offers in a variety of data rates to match your business needs. The setup covers all labor necessary to install and configure the Antenna, Receiver and Routers. The Cost as minimum as a business man can imagine.

Quality of service:

The quality of service is built into the differentiated service levels. This provides T1-type service for business and DSL-type service for residential. It also enables voice and video capabilities.

Lower risk:

It has less risk for the customer’s. Equipment interoperability around the standard helps lower the cost of customer premise equipment, while allowing the operator to mix and match equipment from multiple vendors. Customer service can be provisioned and managed remotely, reducing operating expenses. Quality of service: The 802.16 MAC is designed to provide support for voice and video.

END-USER BENEFITS:

Send and receive email quickly and efficiently Download files, web pages and images at blazing speeds



Operate with an always-ON Internet connection Allow for a private networking between offices Protect your office from hacking with a built in firewall Facilitate high-quality video conferencing Support interoffice wireless roaming Improving the productivity of workers through information access Reducing costs by eliminating process steps Increasing revenues through the introduction of new products and services Enhancing customer service capabilities. Wider coverage area: Improved non-line of site performance increases the operator's coverage of the targeted service area, meaning that more end users can get access to high-speed wireless Internet service.

BASIC TECHNOLOGY:Three steps are involved in Vodafone Network.

Point to Point wireless Network Home Wireless Network Transportation of data.

3.2 Weaknesses

Weaknesses include cellular fraud, limited bandwidth, and health concerns. There are predominantly three types of fraud in the cellular industry today. They are user subscription fraud, stolen phones, and access fraud (Arcuri, 1995). The most popular of these is access fraud or "cloning" which occurs when a criminal uses a scanner and records the Mobile Identification Number (MIN) and Electronic Serial Number (ESN) of valid users. This captured MIN/ESN combination is programmed into an illegal phone e which is used fraudulently. The fraudulent calls are then billed to the MIN of the authorized customer (Telecommunications Fraud, 1994; Abernathy, 1991). Cloning is primarily a weakness of the AMPS analog networks because the equipment used to commit fraud is readily available to the public.

Vodafone Telecom currently has weaknesses in the following areas:

Lack of AwarenessEmployee morale issues.Communication/language issues between headquarters and northern areas. Version control issues among UNICORN and MEDUSA product lines.

3.3 Opportunities

Although there is no concrete evidence that the use of cellular technology is damaging to the users' health, this author believes that managers should prudently avoid the risk of problems by adhering to the following recommendations:



o Provide special arrangements for users who may be more susceptible to harm such as pregnant women, infants, and small children.

o Configure the users' operation to keep the transmitting antenna as far away from the head as possible.

o Purchase low-power systems. o Advise employees to turn off systems when not in use.

The opportunities in using cellular technology are extending the bound of a corporation's network infrastructure to include mobile users that may be roaming locally, regionally or nationally. The application of cellular technology to business processes m ay make an organization more productive to improve response times for responding to problems and requests. This may improve the quality of a service organization by improving dimensions of quality that the customers' find important. Therefore, cellular technology presents the opportunity of using wireless technology to make a corporation more responsive to customer needs and becoming more competitive.

Vodafone Telecom Company currently has opportunities in the following areas.

Wide Network CoverageBig set up in the market to use the cellular servicesNew packages provider

3.4 Threats

Vodafone will eventually be more desirable than cellular technology because it will be less expensive and have more features. Therefore, there is a threat of investing and relying too much on cellular technology if the applications can not eventually be migrated to PCS platforms. Managers should not have their organization invest a large sum of money in cellular technology with the intent of it being a long term investment. Managers should invest in the technology wisely and be prepared to migrate to newer forms of wireless technology.

WIRELESS COMMUNICATION ASSOCIATION (WCA) (www.wcai.com):

"The Wireless Communications Association applauds the advancement of voluntary standards and interoperability as key to keeping deployment costs low and advancing the growth of wireless broadband," said Andrew Kreig, WCA president. "For these reasons, WCA participated in the first strategic meeting in July 1998 that led to the formation Wireless Broadband, and WCA now regards its progress and the supportive efforts of Wireless Broadband and others as extremely helpful for the industry. We are hopeful that all these efforts to advance wireless broadband solutions will be undertaken in conjunction with the WCA. That should promote broad industry participation while minimizing duplication, especially during this period of financial challenges for the industry."



Vodafone Telecom potentially faces threats in the following areas:

Internal Risk Factors

A product road map which leads to the development of new functionalities and the enhancement of existing system modules which are in-line with customer expectations. Ability of the company to attract, train, and retain qualified technical, sales, marketing, financial, and management personnel to meet the challenges of growth. Attraction of adequate initial capital to jump-start the company to the next level. These funds will allow the company to hire needed resources, open regional sales offices, develop OEM/system integration relationships, and develop system enhancements and new product offerings on a timelier basis. External Risk Factors

Competition in the market for telecommunications billing and customer care systems is highly competitive and the company expects this competition to increase. Not only does the company compete with other independent providers of billing systems and services, it competes with system integrators and with internal billing departments of many telecommunications carriers. It is expected that continued growth and competition in the telecommunications industry, and the entrance of new competitors into the market, will continue. Alternative pricing arrangements may be required to cultivate relationships with new market entrants and to a lesser degree with established companies. These arrangements may call for deferred payments. However, if the company permits customers to pay for its products and services on a deferral or revenue sharing basis, the company may ultimately be unable to collect payments for such products and services. International factors may cause significant risks to the company. The company's business may be subject to unexpected changes in: regulatory requirements, tariffs and other trade barriers, costs of localizing products for foreign countries, lack of acceptance of localized products in foreign countries, longer accounts receivable payment cycles, difficulties in managing international operations, political instability, potentially adverse tax obligations, restrictions on the repatriation of earnings and the burdens of complying with a wide variety of foreign laws and regulations. Fluctuations in exchange rates between the United States dollar and foreign currencies may have a material adverse effect on the company's business, results of operations, and financial condition and could result in exchange losses. There are no assurances that any hedging techniques implemented by the company will be successful. The laws of certain countries in which the company may sell its products and services do not protect the company's software and intellectual property rights. As a result, it may be possible for a third party to copy or otherwise obtain and use the company's technology without authorization, or to develop similar technology independently. If this occurs to any substantial degree to the company's business, results of operations and financial condition could be affected.



An integral factor in the company's growth strategy is the development of third party relationships with a number of consulting and systems integrator firms to enhance its marketing, sales, and customer support efforts. Failure to generate these relationships will have a negative impact on the company's ability to meet its targeted growth in sales.

Increase the competitionLaunch of Vodafone will increase the level of competition. So the threat is that Vodafone has to decrease the price of the product. And due to tough competition it will be tough to stay in the market. With the increasing demand for the better services most of the cellular services providers have entered the market. It is estimated that there are over 50 vendors for billing and customer care systems.There is an increasing move by computer and switch vendors, system integrators, and telecom operators (e.g. IBM, Siemens, EDS, Deutsche Telecom) to develop in-house billing for customers. They are formidable competitors with deep pockets, large existing customer bases, and significant influence on customer decision-making.

In addition, the majority of players (both large and small) are extending product service portfolios to provide all services, i.e. Internet, mobile, cable, fixed and convergent services. Vodafone Telecom Company will compete in this market by providing high-value products and services at competitive prices.

Competitor Financial Performance The market for billing and customer care has enjoyed solid growth for the past six years. Companies that compete in this market were direct beneficiaries of this growth, as were their shareholders.

4) Objectives & Issues

We have set the particular objectives for the Vodafone expand. We have divided the objective in two parts. It means what will we achieve in the first year & what is the basic strategy for the next year.

First year objectives

Units sales volume

24000

Market share 5%Promotion

Budget¼ of the investment

Basic Strategy Dynamic strategy that can be change according to the strategies of the



competitors

Second year objectives

Units sales volume

26000

Market share 10%Promotion Budget

¼ of the investment

Basic Strategy Dynamic strategy that can be change according to the strategies of the competitors

Issues

LaunchpositioningInvestmentCompetitive EdgeBrand imageMeasuring the MarketingStrategy Implementation

5) Marketing Strategy

The following sub-topics cover the marketing strategy for Vodafone cellular company.

Mission statement:

Our mission is to be the provider of high value, high quality, and convergent cellular company worldwide. These scalable solutions will have unparalleled support to ensure flexibility and to meet and exceed customer expectations. Our mission is not to earn profit but retain the customer for the long period of time. Our Vision and Values guide the way we act. Our Vision is to be the world’s mobile communication leader –



enriching customers’ lives, helping individuals, businesses and communities be more connected in a mobile world. Our Values are about how we feel – in other words the Passions that make us the company we are.

One of our four corporate Values is 'Passion for the world around us'

"We will help the people of the world to have fuller lives - both through the services we provide and through the impact we have on the world around us."

5.1) Positioning

Using product differentiation we are positioning the Vodafone as a versatile and beneficial service and product for our customers. Our marketing strategy is to introduced the high frequency satellite radio waves.

Vodafone cellular company's position relative to these drivers:

1. Price: Vodafone cellular company will maintain a price that is 20% less than market vendors

2. Features: Within the given product module, Vodafone cellular company will offer features that meet or exceed vendors. Vodafone cellular company will also maintain a robust product road map that is discussed and approved by vendors in a user group format.

3. Service Offering: While service offerings to operators from other vendors are shrinking or too expensive, Vodafone cellular company will offer a complete package of services at affordable prices.

4. Product Flexibility: Vodafone cellular company will strive to maintain a lead in the ability of the operator to easily add schemes and re-configure the system. In addition, Vodafone cellular company will maintain an open environment.

5. Scalability Vodafone cellular company will continue to engineer scalability into its product. This will entail commitment to multi-rating engines and porting to more robust operating systems like UNIX.

6. Vendor Experience: Vodafone cellular company will follow a stepped strategy to be sure we under-commit and over-deliver to our customers.

This positioning strategy differentiates Vodafone cellular company from other competitors. This leaves a number of other vendors which are targeting vendors. The approach of these vendors is to lead with price and minimize service functionality. Vodafone cellular company believes that most operators desire a full-service vendor or a partnership at an affordable price. Vodafone cellular company intends to be that vendor.



5.2 Product Strategy

The Vodafone cellular company business model is based on a customer excellence or customer intimacy model. Vodafone cellular company is organized as product and consulting services groups that are guided by our marketing strategy.

Customer ExcellenceVodafone cellular company will strive to understand the customer intimately in order to provide solutions that match their specific needs. To be successful, Vodafone cellular company will develop long-term relationships and choose customers that share this model.

In the best-selling publication "Discipline of Market Leaders," customer excellence is defined as "specializing in satisfying unique needs." These unique needs are recognizable only by a vendor with a close relationship and intimate knowledge of the customer.For a comprehensive definition of the model for customer excellence, Vodafone cellular company's plan includes:

Develop long-term relationships with our customers.

Avoid clients that do not have long-term potential.

Steer clear of pure transactions or one-time deals.

Do whatever it takes to please the customer.

Educate employees to be adaptable, flexible, and multi-talented.

Create an unmatched value proposition of best total solution for our clients.

Search for new areas of mutual cooperation.

To constantly improve our value model, develop a value proposition around solutions, and aggressively evolve and improve each solution.

Develop an operating model dedicated to delivering unmatched value.

In order to develop high value solutions for our customers, Vodafone cellular company is organized with our core development and professional service groups based in Pakistan. Our worldwide headquarters are based in America, England, and Canada. where marketing and executive management will lead the overall enterprise.

To ensure that Vodafone cellular company can provide customer excellence, we will be highly decentralized, keeping decisions close to the customer. In order to accomplish this,



the company has established sales, marketing and support teams in Europe, Asia, Latin America and North America.

Our service strategy is to provide the best and foremost unique service in the town. We are working on LEO system. Cellular telephony has brought us a new technological "system"-- the personal communications system (PCS). In the fully developed PCS, the individual would carry his telephone with him. This telephone could be used for voice or data and would be usable anywhere. Several companies have committed themselves to providing a version of this system using satellites in low earth orbits (LEO). These orbits are significantly lower than the TELSTAR/RELAY orbits of the early 1960s. The early "low-orbit" satellites were in elliptical orbits that took them through the lower van Allen radiation belt. The new systems will be in orbits at about 500 miles, below the belt.

5.3 Pricing Strategy

Our pricing strategy for products is to maintain a 30% to 40% advantage below vendors for total installation cost which includes custom services and other expenses. Coupled with our strong product road map, Vodafone cellular company believes that this forms the core of a very strong value proposition.



Call rate: Rs. 1.35 + tax from Vodafone to Vodafone Call rate: Rs. 2.75 + tax on other networks

Sms: Rs.1.00 + tax on Vodafone Sms: Rs. 2.00 + tax on other networks

International Sms: Rs 3.45 + tax

Cards Price: 40, 100, 300, 600, 1000.


Post paid Package:

1: Gossip




2: Ease


3: Zenith

Call rate: Rs. 1 on Vodafone + 50 minute call free Line rent: Rs 450 Free 25 Sms Power tools Sms Rs. 1.25 International Sms Rs. 5


The tax is included in the final price but included only on over all cost. Competitor play main role in price setting when they change their packages, then we have to change our packages. This price is not a final price we can change it according to our needs and competitors.

5.4 Distribution Strategy

Products will be sold through direct and indirect channels. The mix is 50% direct and 50% indirect. Indirect channels include:

System integratorsComputer suppliersSwitch vendorsMulti- operators

Vodafone cellular company is currently developing relationships with indirect channels including:

Vertical MatrixCompaqGem Plus




Head officeMain franchises: (Distributor)Sub Franchises: (Retailer)Small Shops

Strategy and Plan about providing the product in every area of Pakistan: We are the provider for all not for specific class.

5.5 Communication Strategy

PROMOTION:

Actually promotion is a first step when we produce a product. But we make it strategy in last. In promotion we will tell our customer about our service features in better and attractive mood. We will make a good image in the mind of our potential customers so that they will buy only our product in the world of competition in which all venders are providing the best services. We will tell our product features.

For example:

Procedure of Promotion: In promotion our main objective is to guide and convince the customer through;

AwarenessKnowledgeLiking


Now Vodafone with 3G!

Vodafone live! Is now powered by 3G (UMTS) - the next generation of mobile network. With 3G you can send and receive larger pieces of information. Not just voice, text

messages and pictures, but video and music too.

Make video calls

Send video messages (MMS)

Always online facility(GPRS)

Stay in touch with your office no matter how much far


DecisionPurchase.

Main Sources of Promotion: Print Media Electronic Media Hoardings.NewspaperUniversity studentsWebsitesAdvertising in trade journals; Trade shows and conferences; Telemarketing; User group; Direct mailing; Targeted sales calls; Customer referrals.

5.6 Marketing Research

Using marketing research we identify what our customer needs. Either we are fulfilling their needs or not? they are happy from our service or not? We can take feedback from

Test marketingSurveys

Questionnaire method.

Sample Questionnaire:

Name (optional):

1) Do u have mobile? Yes No

2) Which connection do you have right now?Vodafone Mobil ink Ufone Warid Paktel

3) Do you like Vodafone? Yes No

4) Did you find your current connection user friendly? Yes No

5) What is present condition of Vodafone? Better Good satisfactory poor

6) Is Vodafone satisfying customer needs and demands?



Yes No7) Did you ever see the ad of Vodafone on TV?

Yes No8) For what reason you are using current connection?

Economical Easy to use Good service9) Do you want to see above changing in Vodafone?

Yes No 10) Did you ever call help line? If yes are you satisfied with their behaviors?

Yes No 11) What are the reasons that Vodafone is not so popular?

1)-

2)-12) What step Vodafone should be taken to achieve its goals?

1)-

2)-

THANK YOU VERY MUCH FOR PARTICIPATING IN THIS SURVEY!

Signature:

Target customers:

Basically our target market is teen ages colligates. In first year we just want to retain them not to earn profit.

Post-paid systems Typical business men are target market of this package.

Post paid Package:

1: Gossip

Line rent: Rs 130 Free 17 Sms



Power tools Sms Rs. 1 International Sms Rs 2

2: Ease


3: Zenith

Call rate: Rs. 1 on Vodafone + 50 minute call free Line rent: Rs 450 Free 25 Sms Power tools Sms Rs. 1.25 International Sms Rs. 5 International Sms Rs. 5

1. Prepaid system.Teen ages and ordinary business men are the target market of prepaid service system.



Call rate: Rs. 1.35 + tax from Vodafone to Vodafone Call rate: Rs. 2.75 + tax on other networks

Sms: Rs.1.00 + tax on Vodafone Sms: Rs. 2.00 + tax on other networks

International Sms: Rs 3.45 + tax

Cards Price: 40, 100, 300, 600, 1000.




Prepaid Package:

Teen ages

Working women

lay man

business men

others Sector

5.7 Marketing Organization

Sales and marketing is a decentralized organization locating our professional staff close to our customers' operations to ensure customer knowledge intimacy at all times. The primary functions are:

Direct salesChannel managementMarketingService managementAccount managementProgram managementProposals and contract development


9%

3%

8%

2%

5%


Vodafone cellular company embraces a team-selling methodology with responsibilities and processes defined for efficient operation. The sales and marketing teams are staffed with professionals that have substantial experience in selling and marketing hardware, software, and solutions in the global telecommunications market. Regional organizations are responsible for definition of the sales and marketing strategies and plans for their respective territories. Each region also provides significant input and review of the corporate strategic sales, marketing, and product direction.



6 Action Program

The Vodafone will be launched in January 2007 one year action program January 2007 to December 2007 is given under here. In first year we will mainly concentrate on Targeting, Promotion and Positioning of our product.

Following is the summary of the action program. These are the strategies that we will implement in the coming year.

January:We will launch the Vodafone in the January 2007. After that we will promote our product by using different means. We will exhibit a show in which we display our product (Vodafone). We provide samples to selected product reviewers, opinion leaders, and celebrities as part of our public relations strategy. Our training staff will work with sales personnel at major retails chains to explain the Vodafone features, benefits, and competitive advantages.

February:We will start an integrated print/radio/ internet campaign targeting professionals and consumers. The campaign will show how quickly Vodafone users can accomplish the task using voice recognition.

March:We will continue with the multi-media campaign. We will add consumer sales promotion tactics. We will also distribute new point-of-purchase display to support our retailers.

April:We will hold the trade sales contest offering prizes for the sales persons and retail organization that sells the most Vodafone during the 3- week period.

May:A new national advertising Campaign will start in May. The radio Adds will features celebrities’ voices using the voice recognition system. The print ads will show these celebrities holding their Vodafone.

June:Vodafone will also exhibit a trade show (semiannual); it provides the channel partners with new competitive comparison handouts as sale aid. We will conduct a survey. That what did we do with the customers regarding our product. How much successful we are? We will do a marketing analysis regarding the activities of our product.

July:We will launch the Vodafone in the January 2007. After that we will promote our product by using different means. We will exhibit a show in which we display our product



Vodafone). We provide samples to selected product reviewers, opinion leaders, and celebrities as part of our public relations strategy. Our training staff will work with sales personnel at major retails chains to explain the Vodafone features, benefits, and competitive advantages.

August:

In the fifth month of its launching we will only concentrate on the promotion and positioning of our product. We will decide the budget for promotion and style of promotion that how we have to retain the customer for the long run and how we can position our product in the mind of customer better then competitors so that we may get competitive edge. We will also emphasis on customer call center.

Customer Care and Administration: we will provide free help line as well as frequent answers of problems on net. Following things will be covered in customer call care center.

o Subscriber Registration: Registration is a quick and easy process, which may be performed both online as well as offline (batch).

o Customer Inquiry:

Service (primary & value-added services);

Package related information;

Tariff related information;

Bill related information.

o Activation/Deactivation status

o Usage Charges:

Bill amount;

Pending/adjustment amount;

Credit limits information.

September:

In sixth month we will decide how we can promote our product in unique way. So that it will be known as differential product. We will emphasis on customer care call



centers so that our employees will help our target market if they will have any problem during the use of our product.

October:

In October same strategy will be repeated.

November:

In the 8th month we will change our promotion style we will make a lot of banners which will be pasted in the middle of town so that every one will be noticed them. In spite of this we will have programs on radio for the promotion.

December:

We will have some extra activities for our promotion. Different activities for our customers like play a game, Entertainment listen songs etc. free 50 messages in a month etc.

January (2007)

In January 2007 we will celebrate one year of our launching in different way like we will held hockey or foot ball match for the public some entertainment show. To capture their attraction.

7) BudgetsSales forecast:Total estimated sale of Vodafone in one year will be varying.

Revenues are calculated separately for each product and for maintenance and consulting services. In addition, product revenue is broken out between new sales and upgrade sales. New sales and upgrade sales are further broken down into license, installation, and customization revenue. The products included in this forecast are customer care and billing products, prepaid packages.



Monthly Sales Forecast

Expense Forecast

All expenses incurred on advertising traveling other billing charges etc.


Other

Advertisement

Expenses


Marketing Expense Budget

2005 2006

Advertising/Promotion

1,098,000 1,185,000

Travel 3,186,000 3,297,000

Other 0 0

------------ ------------

Total Sales and Marketing Expenses

4,284,000 4,482,000

Percent of Sales 14.19% 9.46%

Sales vs. Margins.



Profit and Loss A/c:

Sales: 52978457

Operating Expenses:

Advertising/Promotion 1,185,0003,

Travel 3297000

Other 1150000

Electricity bills 1500000

Total Expenses (17797003)

NET PROFIT 35181454

8) ControlsWe are planning to have tight control measures to closely monitor quality and

customer service satisfaction. By adopting this strategy we will able to correct our mistakes quickly and will be able to make customer delighted.

Sales and marketing is a decentralized organization locating our professional staff close to our customers' operations to ensure customer knowledge intimacy at all times. The primary functions are:

Direct salesChannel managementMarketingProduct managementAccount management Program managementProposals and contract development



Vodafone cellular company embraces a team-selling methodology with responsibilities and processes defined for efficient operation. The sales and marketing teams are staffed with professionals that have substantial experience in selling and marketing hardware, software, and solutions in the global telecommunications market. Regional organizations are responsible for definition of the sales and marketing strategies and plans for their respective territories. Each region also provides significant input and review of the corporate strategic sales, marketing, and product direction. And we will have tight control over it.

Conclusion

Cellular communication technology gives corporations the ability to extend the bounds of a communications infrastructure to mobile-untethered users. Many corporations can and are translating this mobility to a competitive advantage by enhancing inter and intra-company communication. Competitive advantages may be achieved in many ways including improving the quality of a company's products or services, improving the relationship between a firm and its stakeholders (Note 1), increasing productivity , and lowering costs (e.g., Freeman, 1984; Keen, 1986; Porter, 1980). This research paper described cellular technology, competing technologies, cellular applications, life cycle phases, cost considerations, hardware and software requirements, strengths, weaknesses, opportunities, and threats found in cellular technology. It also makes recommendations on how to incorporate cellular technology into organizations. Managers should use information presented in this paper as a guideline to help make decisions relating to cellular communication.

The opportunities for further research in the field of cellular technology include quantifying how the technology improves productivity in organizations, developing migration strategies to PCS platforms, and integrating the technology into the existing data network infrastructure.


Documents

Market Plan on Vodafone vs. Pakistani Operators