ZONG POSTPAIDMarketing Plan

“in the name of Allah the most beneficial and the merciful”.

Mardan institute of management sciences Marketing plan – ZONG postpaid

ZONG POSTPAID

ZONG POSTPAIDMarketing Plan

Presented By

Darbar Khan Imran Yousafzai Zeeshan Ali Waseem Ali

CMPak Company Overview

China Mobile is the world's largest telecom operator. Having a customer base of over 300 million

customers China Mobile Pakistan (CMPak) is a 100%

subsidiary of China Mobile. China Mobile came through acquisition of a license

from Millicom to operate a GSM network in Pakistan Has currently established 172 franchises & 22 CSC

throughout Pakistan Has currently employs 19,289 Has established a huge chain of 100,000 retail outlets

Mission statement of CMPak

CMPak mission statement is: We offer our customers with entertaining & innovative value

added services and will empower them by giving a wide variety of products, services & content to choose from. It is our mission to empower and liberate the people of Pakistan in every nook and corner of the country. It will become a part of their hearts, their minds and bring about a change in their lives. We will be supported by ground breaking communications, trend setting customer service and an unmatched product. We are privileged to be the pioneering country introducing this brand with others to follow. And God willing, together we will also make ZONG a success story for others to try and replicate.

Objectives of the plan

To become a market leader In terms of high market share & greater subscribers To bring the trend of postpaid by giving a high

quality services and cheaper rates To continue serving our loyal consumers with the

unique feature/package of talkfree, now in postpaid

Situational analysis

ZONG, the first international brand of China Mobile, has announced its entry into the extremely competitive ‘Postpaid’ market. Pakistan’s current situation is extremely competitive, with five telecommunication providers sharing almost more then 500 million customers.

Postpaid Market Share

32%

25%

24%

15%4%

Indego

Persona

Postpay

AL-Warid

Zong

Consumer analysis

Factors effecting consumers, purchasing power

Quality network & availability of products and services Quality advertisement and quality positioning of products Prepaid cards taxes are increased from 9% to 15% 5 competitors providing flexible verity to subscribe to

purchase Pakistan per capita income is $1043 in 2008-9

S.W.O.T Analysis

Strengths Strong brand name Strong advertisements Work force of experienced and professional employees Aggressive network expansion Separate helpline for postpaid consumers A unique service of BYN A massive base of 100,000 outlets nationwide to pay the bill Strong & rich CMCC

S.W.O.T Analysis

WeaknessesNetwork is week comparatively in some

regions Erroneous impact of paktel on ZONG

specially in the mind of customers not consumers

S.W.O.T Analysis

Opportunities The development of CMPak in rural areas of Pakistan Mobile number portability MNP enables the customers to

change the operator Book your number BYN enables the customers to personalize

the number of his/her choice BYN home delivery enables the customers to receive the

product on his/her door step The establishment of walk-in centers in small cities Great potential in the market growth Appr.1.5 million per

month

S.W.O.T Analysis

Threats Intense competition Political instability less awareness & trend of postpaid Economic recession Mobile number portability MNP

Market Segmentation

Price conscious subscribers.Price conscious subscribers. (Psychographic Segmentation on the basis of low (Psychographic Segmentation on the basis of low

tariff rates motivational driving force)tariff rates motivational driving force)

Network Quality and high Network availability conscious subscribers.Network Quality and high Network availability conscious subscribers. (Psychographic Segmentation)(Psychographic Segmentation)

YouthYouth segment of mobile communication subscribers.segment of mobile communication subscribers. (Behavioral and (Behavioral and

Psychographic Segmentation on the basis of youth taste)Psychographic Segmentation on the basis of youth taste)

Business community segment.Business community segment. (Demographic, Psychographic, &(Demographic, Psychographic, & Behavioral Behavioral

Segmentation on the basis of occupation, status, consumption,Segmentation on the basis of occupation, status, consumption, income level and income level and education leveleducation level))

Target Market

We have divided the market for ZONG postpaid in to three groups

First group of youngsters, where they can have access to a maximum talk time in limited pocket money or earnings includes students & masses between the age of 18-25

The second group is made of business class. Which are having a trend of using postpaid

The third group includes those individuals who have been facilitated with ZONG talkfree packages in prepaid

Positioning ( Feel lighter)

Lowest, call rates, On-net & off net

Free Minutes & SMS on all packages

Lowest GPRS rates No hidden charges

Specialized unit at Call centre to take care of our Postpaid customers

E-Care Do It yourself Customer Services

Virtual Credit Limit concept

SPOUSE NUMBER – Call one ZONG number for free 24/7

Marketing Mix (Product strategy)

ZONG POSTPAID: Easy to choose 5 new packages SPOUSE NUMBER – Call one ZONG number for free

24/7 (differentiation strategy)(differentiation strategy)

ZONG postpaid SIM has a powerful menu of- newest tones, video clips, animated SIM has a powerful menu of- newest tones, video clips, animated

pictures, games, anonymous chat, and all sorts of insights into what's happening on the social scene.pictures, games, anonymous chat, and all sorts of insights into what's happening on the social scene. Virtual Credit Limit concept, discounts & benefits discounts & benefits

Lowest GPRS rates, through u can surf & download the newest ring tones, u can surf & download the newest ring tones,

pictures, games, & video clips.pictures, games, & video clips.

Marketing Mix (Pricing strategy)

PriceWe are following pricing concept for ZONG

postpaid sales Market Penetration Pricing Strategy- charging low price to encourage the customersMarket Penetration Pricing Strategy- charging low price to encourage the customers

Free air time and SMS both on-net off-netFree air time and SMS both on-net off-net Free of cost sim for new subscribers Free of cost sim for new subscribers Lowest security charges in comparison with competitorsLowest security charges in comparison with competitors No hidden charges No hidden charges

Marketing Mix (Pricing)

Zong POSTPAID packagesLine Rent (Rs.) 100 300 600 1200 2000

On-Net Calls Airtime 0.5 0.45 0.375 0.3 0.1

Off-Net Calls Airtime 0.5 0.45 0.375 0.3 0.2

FNF (5 each on 100,300 & 600)0.4 0.3 0.2 Spouse Number N/A

Spouse Number (Rs.) N/A N/A N/A Free N/A

Free SMS (On & Off-Net) 20 60 100 150 300

SMS Rate (Rs.) 1 1 1 1 1GPRS 15 15 15 15 15

Free Minutes

Free Minutes Break Up 100 300 600 1,200 6,800

On-Net 60 180 360 720 6,000

Off-Net-PTCL 20 60 120 240 400

Off-Net-OMO 20 60 120 240 400

Refundable security deposit 600 1000 1500 2500 4000

Marketing Mix (Place & Distribution strategy)

We perform both direct and indirect distribution of ZONG postpaid

Direct distribution can be possible from the ZONG 178 franchises & 22 CSC which are acting throughout Pakistan

While in indirect distribution we could use our 100,000 retail outlets

Providence of service guides, Tariff plan, vouchers, helping post materials, products will be provided to the retailers through franchises sales team (RSOs)

DSO activities will be made on both company & franchises level, where dedicated staff will be hired for the subject activities

For good placement of ZONG postpaid, we will provide ZONG labeled baskets to several retailers and franchises

Marketing Mix (Promotion strategy)

For the promotion of ZONG postpaid we are following these concepts

Repetition of advertisements with the slogan of “feel lighter” for one month through print media, TV channels, bill boards etc.

flexible commissions policy for franchisers and retailers up to *****% on ZONG postpaid sales

Launching special promotions campaign after aggressive advertisements in fist month, with additional new features like new tariff, extra free minutes, EDGE etc

DSO activities or personal selling to business customers

Financial projection for the plan

1.Personnel Cost1.Personnel Cost

compensation to personnel RS…………compensation to personnel RS…………

Financial benefits to retailers and franchises for motivationFinancial benefits to retailers and franchises for motivation Rs……………Rs……………

2.Packaging Cost2.Packaging Cost

SIM packs and SIM activation forms Rs……………SIM packs and SIM activation forms Rs……………

Postpaid service guide, tariff rates schedules & postpaid advertising posters Postpaid service guide, tariff rates schedules & postpaid advertising posters Rs…………….. Rs……………..

Postpaid labeled baskets Rs…………Postpaid labeled baskets Rs………… 3.Promotional cost3.Promotional cost

Payments to advertising Agency RS…….Payments to advertising Agency RS…….

Tax to Government on Bill board ads Rs……Tax to Government on Bill board ads Rs……

Television commercials & news papers ads cost Rs…..Television commercials & news papers ads cost Rs…..

Cost of separate web site for ZONGCost of separate web site for ZONG Rs…….Rs…….

Payment to models in the advertisement campaignsPayment to models in the advertisement campaigns Rs…….Rs…….

Implementation &Controls

CMPakCMPak sales and marketing department must always need to remain in contact with sales and marketing department must always need to remain in contact with

following promotional sources forfollowing promotional sources for creating desirable image in target consumers mind creating desirable image in target consumers mind

for ZONG postpaid .for ZONG postpaid .

1.Advertising agencies to plan ad campaigns1.Advertising agencies to plan ad campaigns

2.Print media and electronic media of Pakistan2.Print media and electronic media of Pakistan

CMPak will provide a very well compensation to its distributors, retailers on large CMPak will provide a very well compensation to its distributors, retailers on large

selling of ZONGselling of ZONG PostpaidPostpaid..

CMPakCMPak willwill provide all the social and cultural value to its employees, provide all the social and cultural value to its employees, we will we will

conduct different kind of trainings, informational meetingsconduct different kind of trainings, informational meetings so theyso they become motivated and works hard for gaining more customers for ZONGbecome motivated and works hard for gaining more customers for ZONG postpaidpostpaid. .

Implementation &Controls

o We Well collect sales reports forms each region through our sales representatives, from We Well collect sales reports forms each region through our sales representatives, from

retailer, sales and services centers to collect magnifiedretailer, sales and services centers to collect magnified information about ZONGinformation about ZONG postpaidpostpaid and to take an action in case of any problem in the plan. and to take an action in case of any problem in the plan.

o WeWe will make random calls to our subscribers who have ZONG will make random calls to our subscribers who have ZONG postpaid but not using it since 1 to 2 months for gathering postpaid but not using it since 1 to 2 months for gathering information's, feedback, about ZONG postpaid positives and information's, feedback, about ZONG postpaid positives and negatives.negatives.

Q/A

Thanks

Marketing plan – ZONG postpaidMardan institute of management sciences