Mobilink Vs Telenor

A comparative study

Subject: Marketing Research

Presented by: MBA-Exe-4Qasim Umar

Farrukh SaeedBushra NawazM. Omer Meraj

Saba NazM. Ashfaq

Abdur Rehman

Presented To:

Sir Ahmed Ur Rehman

Department of Business Management Sciences

University of Agriculture Faisalabad

Table of Contents

1. Introduction2. SWOT3. Service Marketing Mix4. Value added services5. Corporate social responsibility6. Financials7. Branding8. Primary Research9. Recommendations.

1. Introduction:

This study comprised of two basic type of research primary and secondary. Industry under discussion is Mobile Operators (telecommunications). Mobilink is being compared with telenor. Objective is to compare their main points of competition, strengths, weakness and then some recommendations to proceed further or maintain leading positions. As we know all, that there is a cut throat competition in mobile operators and this has already taken the major portion of profits away. As per market experts sooner or latter there will be merger of mobile operators as the price wars have entered into very serious era and it has become the question of assistance.

Our secondary research includes the pricing, offering, corporate social responsibility, financials and the branding. While primary research is focused on the quality of service which will be the new battle field in near future.

Mobilink: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. The first cellular service provider to operate on a 100% digital GSM technology in Pakistan. 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. Mobilink offers postpaid (Indigo) and prepaid (JAZZ) solutions to customers. 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. Mobilink places high importance to its coverage (10,000+ cities and towns nationwide as well as over 130 countries

on international roaming service). Mobilink is Pakistan's Dominant mobile operator, with 28.6mn subscribers and a market share of approximately 41%. Pakistan’s increasingly competitive mobile market, Mobilink has suffered a decline in market share, given that the operator controlled about 50% of Pakistan’s mobile market in June 2006.

Telenor:

Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia together with Thailand, Malaysia and Bangladesh.Telenor Pakistan launched its operations in March 2005 as the single largest direct European investment in Pakistan, setting precedence for further foreign investments in the telecom sector. The company has crossed many milestones and grown in a number of directions, making Telenor Pakistan a leading telecom operator of the country.Telenor is the fastest growing mobile network in the country, with coverage reaching deep into many of the remotest areas of Pakistan. In the most difficult terrains of the country, from the northern areas to the deserts in the south. Telenor investing heavily in infrastructure expansion. With USD2 billion already invested, with extended agreements with their vendors for network expansion and services. Telenor have a network of 23 company-owned sales and service centers, more than 200 franchisees and some 100,000 retail outlets.The Telenor Group is an international provider of high quality telecom, data and media communication services with mobile operations in 13 markets across the Nordic region, Central and Eastern Europe and in Asia. The Telenor Group is among the largest mobile operators in the world with over 143 million mobile subscriptions and a workforce of approximately 40,000. Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia.

2. SWOT

SWOT Analysis (Mobilink Pakistan)

Strengths: Pioneer in GSM service in Pakistan. Strong Brand name Good coverage and speed Highest market share in terms of subscribers and revenue. Roaming agreements with 50 operators in 42 countries Large number of corporate customers. Economy of scale. Phone Banking.

Weaknesses: High call rates. Large organizational structure Falling Market share

Opportunities: WLL and ILD services in competition to PTCL, providing

opportunities for infrastructure suppliers Growth of VAS –WiMAX networks, mobile TV services. Deployment of 3G technology Huge potential for growth especially in rural parts of the country Adaptation of newest technology. Field-testing and certification of its General Packet Radio Service

(GPRS) products

Threats:

Competition High tax rates Increase in imported equipment costs Network capacity Deterioration in service quality Political instability

SWOT Analysis (Telenor Pakistan)

Strengths: Network quality and design Superior customer care Financial strengths Excellent coverage and distribution Contract with Siemens and Nokia Brand image of quality

Weaknesses: Relatively low market share Low profit margin Negative cash flow in initial years

Opportunities: Favorable macro economic indicator Low cellular market penetration Inefficiency and poor performance of other networks Strategic alliances and infrastructure sharing facilities Mobile number portability International mobile equipment identity system

Threats: Rolling customers Privatization and deregulation- increased competitors Wireless technology at boom Propaganda attacking on brand image

3. Services Marketing Mix:

1. Product:

Mobilink has two brands first “Jazz” which is pre-paid second is “Indigo” which is post-paid. “Mobile Currency” is the concept of Mobilink. Its two main offers are mobile money order (for masses) and bill payment (only for post-paid). Mobilink is working very rapidly to take the advantage of awareness spread by Telenor. Also mobilink is analyzing the basic issues faced by to provide error free reliable solution. Telenor has two brands one pre-paid with name “Talkshawk” while other is post-paid with name “Persona”.Telenor’s other main offering is the “easypaisa”. Its concept is based on mobile commerce two main offering are bill payment and money transfer. Telenor has spent a lot on this joint venture especially on awareness. But it still facing operational issues and the project has not matured still.

2. Price:

First the pre-paid segment. Different packages are offered with different pricing schemes.Parameters 68 Paisa 63 Paisa One A1 Easy Har Minute _ Har Second

On-Net Rs 0.68/30 sec Rs 0.63/30 sec Rs 1/min Rs 1/min Rs 2.10/min Rs 2/min _ Rs 0.04/sec

OMO Rs 0.68/30 sec Rs 0.63/30 sec Rs 1.6/ min Rs 1.4/min Rs 2.50/min Rs 2/min _ Rs 0.05/sec

PTCL Rs 0.68/30 sec Rs 0.63/30 sec Rs 1.6/ min Rs 1.4/min Rs 2.50/min Rs 2/min _ Rs 0.05/sec

FnF _ _ Rs 1.5/ 3 min Rs 0.7/min Rs 0.99/min Rs 1/min _ Rs 0.03/sec

SMS-On-Net Rs 1/SMS Rs 1/SMS Rs 1/SMS Rs 1/SMS Rs 1/SMS Rs 1/SMS _ Rs 1/SMS

SMS-Off-Net Rs 1/SMS Rs 1/SMS Rs 1.5/SMS Rs 1/SMS Rs 1.5/SMS Rs 1/SMS _ Rs 1/SMS* OMO other mobile operators* FnF friends and family no

Mobilink being the market leader is the trend setter, 30 sec package was launched by mobilink and all others have to go for this too. But Mobilink is very conscious about its image and positioning never wants to be the cost leader.

Telenor pricing is more convincing than Mobilink in all packages. Only Telenor is operating in per second billing. Mobilink has left the entire segment of per second billing empty. Reason again may the positioning. Mobilink is better only for 1 FnF segment of “ONE” package where it’s cost just 50 paisa per minute.

Some special offerings are Mobilink’s “Jazz Ladies First”(JLF) and Telenor’s “10 Paisa”. JLF was the main revenue earning package in 2007 and 2008 and still it’s effective. Main edge is that there is no daily charge in it, pay only when you use.

Parameters TalkShawk 10 Pisa OfferValidity 1 DayTime 9am to 5pmTalkShawk 30 sec Rs 0.10/30secTalkShawk 30 sec FNF Rs 0.06/30secTalkShawk har min Rs 0.20/minTalkShawk har min FNF Rs 0.10/minTalkShawk A1 1st min Rs 0.28/minTalkShawk A1 2nd min Rs 0.20/min

Parameters Jazz-Ladies-FirstOn-Net (1st min) Rs 2.5/minOn-Net (2nd min onward) Rs 1.5/minOn-Net (11pm to 7am) Rs 5/hour (1,2)OMO Rs 2.5/minPTCL Rs 2.5/minFriends and Faimly _SMS-On-Net Rs 1/minSMS-Off-Net Rs 1.5/min

Now the post-paid segment. Here again different packages are offered with different line rents

Mobilink is offering generally better on-net rates and at high end, both on-net and off-net rates are much superior than Telenor. At entry level, i.e. i-100 VS Easy, Mobilink is offering equal off-net rates whereas on-net rates are higher than Telenor. In the mid-range packages, i.e. i-400 vs Simple, Mobilink is offering the same tariff for Rs. 400 line rent, whereas Telenor is charging Rs. 500 as line rent. At the high-end, both i-900 and i-1500 are far superior than Telenor Free lower on-net rate at 40% lower line rent, while i-1500 offers 50% less on-net rate at same line rent package. I-900 is offering 25%.

3. Place:

It refers to the place where the customers can buy the service/product and how the service/product reaches out to that place; this is done through different channels, location, accessibility, channels of distribution, distribution facilities, service inventory, managing channels.

Mobilink is operating in 10,000+ cities and towns nationwide as well as over 130 countries on international roaming service). Mobilink is Pakistan's Dominant mobile operator, with 28.6mn subscribers and a market share of approximately 41%. Mobilink is facilitating their customer bank by using -Sales and service centers-Franchises

Parameters i-100 Easy i-400 Simple i-900 Free i-1500

Line Rent 100 100 400 500 900 1500 1500

Free Min Rs. 100 Rs. 100 400 500 900 Rs. 2000 1500

On-net 1.25 1.00 1.00 1.00 0.75 1.00 0.50

OMO 1.50 1.50 1.50 1.50 1.50 1.50 1.25

PTCL 1.50 1.50 1.50 1.50 1.50 1.50 1.25

SMS On-net 0.20 0.75 0.75 0.75 0.75 0.75 0.50

SMS Off-net 0.20 0.75 0.75 0.75 0.75 0.75 0.50

-Retailers-JSR

Telenor have a network of -Company-owned sales and service centers. -Franchisees-Retail outlets-Easy paisa outlets-Sahoolat outlets-Mobile Vans

4. Promotion:Both the companies adopts various ways of communicating to the customers of what the company has to offer It is about communicating about the benefits of using a particular product or service rather than just talking about its features. Channels of promotion used by both companies extensively are advertising, personal selling, sales promotion, word of mouth, tele marketing & e-marketing etc.(Both companies are pivotally active in social works and getting promotional benefits through social and cultural aspects. Detailed comparison is placed below)

5. People:

An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the organization wants to obtain a form of competitive advantage, consumers make judgments and deliver perceptions of the service based on the employees they interact with. Mobilink is emphasizing on enhancing appropriate interpersonal skills, attitude, and service knowledge to provide the service that consumers are paying for service encounter, technical trainings, operational trainings recreational tours and gatherings to make staff more interactive and efficient.

Telenor is also focusing on human resource trainings and putting a lot on their Employees recruitment, training, motivation, team work, education, and training. As it has an international repute and standards about benefits and remuneration to their staff.

6. Process:

Service is the basic benefit they will derive from using the connection; itIncludes both the customer service and the coverage and signals in the firstPlace. If the customers are happy and satisfied with the basic need met, theyWould become loyal and a positive relation would develop. CustomerService and increasing coverage provides evidence for their concern in giving their customers unmatched service. And this can be achieved only by following iterative quality services delivery. The systems used to assist the organization in delivering the service are said as processes.Mobilink as a pioneer delivered the best standard of services processes. This set standards for industry. Business centers ambiance, attire and customer friendly approaches lead to be a pioneer in service and quality also. Telenor is also using effective approach and smooth processes for the services and quality implementation. Telenor has introduces mobile vans for rural areas approaches and providing services at door step.

7. Physical evidence:

Where the service being delivered, physical evidence is the element of the service mix which allows the consumer to make judgments on the organization. Mobilink and Telenor are focusing on clean, friendly environment, consumers will make perceptions based on their sight of the service provision which will have an impact on the organizations perceptual plan of the service.Mobilink is working in following areas:-Sales and service centers-Franchises

-Retailers-JSRTelenor is focusing on:Telenor have a network of -Company-owned sales and service centers. -Franchisees-Retail outlets-Easy paisa outlets-Sahoolat outlets-Mobile Vans

4. Value Added Services:

There are lot of services offered by the both operators most of them are SMS (short message service) based like alerts, translators, updaters, while others are MMS, GPRS and EDGE based like Mobile TV, www, path tracker etc.

Telenor has some unique offers like GPRS\EDGE USB, DIJUICE, Location Updater. While Mobilink has Infinity (Wimax 2.5 G only in Karachi), widest international and in flight roaming. In short we can say both the two have some thing to coup with competition.

5. Corporate Social Responsibility:

Mobilink Foundation:Mobilink Foundation was established in December 2007 it reflects the

commitment of Mobilink and its employees to benefit the community. The

Mobilink Foundation is a grant-giving organization, which provides support for the local community not only financially but also through dedicated volunteer hours.  Volunteers are their best asset and by aligning their efforts with those of the Foundation Mobilink enable the Mobilink Foundation to meet its objectives in a united way.

1) Health and Education2) Trochbearers

Mission statement “Our vision is free access to education for children and primary healthcare for all Pakistanis.”

Project Cost RS 81 millionFull capacity of 1,000 families, close to 6,000 persons. 1,009 primary

school students and 127 secondary school students were enrolled in camp schools of which 56% were girls. 18 births were reported 2,500 recycled Mobilink school bags donated. T20 World Cup matches aired. Polio immunization drive took place.

Telenor:“At Telenor Pakistan, we believe that corporate volunteering has

arrived as a major focus in the way business and community form and view their relationships. It is an initiative in which the corporation supports and encourages employees, partners, and/or franchise members to volunteer their time to support local community organizations and causes. Volunteering in

the community along with corporate support is viewed by many as one of the most satisfying of all forms of corporate social involvement.”

Telenor Pakistan developed the idea of “Go Teams” which comprised of Telenor employees and play a vital role in all our emergency response projects. Currently, Telenor is also operating a Zakat Fund through which employees can donate part of their monthly salaries for the earthquake affected children in SOS Shelters. Whether Dua, Telecom Futures, apna PCO, Naya Qadam, emergencies and others, the support and hard work of Telenor employees has helped position Telenor Pakistan as a leader in corporate responsibility.

From the above description we can conclude that the both the organizations understand the importance of CSR (corporate social responsibility). It is also very clear that efforts are more organized and managed in Mobilink and Mobilink is far ahead from Telenor.

6. Financials:

Financials are quite self explanatory as shown in the below mentioned graphs.

Cylindrical bars are showing the foreign investments by mobile operators in year 2008-09 in US$ Millions. Table is showing the revenue generated by the mobile operators in Millions of PAK rupee. While pie chart by showing the market share as per users and revenue generated. And clearly mobilink is on top every where.

ARPU (average revenue per user per month) in US$. Again its showing the strength of Mobilink.

7. Branding:

Both the companies have very strong brands. Telenor’s talkshawk for pre-paid is doing excellent job, in past its main presenter was Ali Zafar. Now a days Anne is representing the brand. It’s a well established brand and main source of revenue. Basic image is the freedom, excitement and passion. On the other hand Mobilink’s Jazz is covering the pre-paid segment. Jazz image is more mature and executive than talkshawk. Jazz has successfully built an image having association with all life segments while talkshawk is something like musical. Though Ali Zafar is presenting the Jazz now, but it is covering all life segments not very much stick to one thing.

Telenor’s Persona is the post-paid solution for business class. Sohail Ahmed is presenting the brand. Persona is covering all business segments very successfully. Mobilink’s Indigo is the post-paid solution and it has very good executive image in past Shan was presenting the brand and now a some usual executive is presenting the brand. In our opinion it’s the real strength of the brand.

Mobilink is far from Telenor in branding due to many reasons. Some major are, pioneer of the telecom industry in Pakistan, Association to Pakistani soil by presenting the patriotic songs from Pakistani music legends. Then by launching support for IPD’s from Swat. Then comes the cricket, the romance of Pakistani nation, Mobilink Hut For Heroes is doing very special with supervision of legend Wasim Akram. The team which played the final of under 19 cricket world cup have the five of these Mobilink heroes. Then time to time presentation of the associations Just right now on the marriage of Shoaib Milk with Sania Mirza Mobilink launched a beautiful print add in all major newspaper declaring that “ AB SANIA MIRZA BE APNI HA” and this in line with the Jazz new Slogan “ Jazz Apna Ha”

8. Primary Research:

For doing this questioner was design under supervision of our instructor. Using the guide lines of the teacher it was designed such that it covers all the five dimension of SERVQUAL. This model proposed by Valerie A. Zeithaml, A. Parasuraman, and Leonard L. In this post we’ll focus on the five dimensions of service, or the criteria used by customers to assess the quality of services according to this model:

1. Tangibles: Appearance of physical facilities, equipment, personnel, and communication materials.

2. Reliability: Ability to perform the promised service dependably and accurately.

3. Responsiveness: Willingness to help customers and provide prompt service.

4. Assurance: Knowledge and courtesy of employees and their ability to convey trust and confidence.

5. Empathy: Caring, individualized attention the firm provides its

customers.

Detailed questioner is shown on next two pages. Very much care was taken in the it’s preparation but still it contains some draw backs. Question no 5 is the worst example two different things should not be asked in a single question as are asked 1st operator and 2nd nature of connection. Most of people left the one option blank. Also question no 6 and 7 are not appropriate as most of users have no direct exposure with the operator’s offices and employee. But still it’s very good.

Research is going on and initial results are very interesting. This would be compiled and shared in the coming presentation. Most of the sample is comprised of salaried class and students and in the salaried class Mobilink use is more. Also sample includes the healthy portion of females. Average age group is 20 to 40 years.

CUSTOMER FEEDBACK1. Name:------------------------------------------- 2. Age:----------- 3. Earning :--- Y/N

4. Gender:-------------- 5. Profession:-------------------- Business Salaried

5. Mobile Service you are using:

Mobilink Telenor Prepaid Postpaid

Instructions: Tick the most appropriate option.1 = Strongly disagreed2 = Disagreed3 = Neutral 4 = Agreed5 = Strongly agreed

6. Staff is well-groomed, appropriately dressed and behave professionally.

1 2 3 4 5

7. Company office is clean, orderly, and free of food and drinks.

1 2 3 4 5

8. SIM(subscriber identity module), packaging, booklets and brochures seem appropriate and attractive.

1 2 3 4 5

9. Mobile signals are available at most of the areas and locations.

1 2 3 4 5

10. Mobile signals are available continuously.

1 2 3 4 5

11. Voice conversation and SMS (short message service) exchange are smooth.

1 2 3 4 5

12. Billing service is appropriate and error free.

1 2 3 4 5

12. Call connects in first attempt mostly.

1 2 3 4 5

13. Help line service works properly without wasting time.

1 2 3 4 5

14. Your issues are addressed properly with prompt response.

1 2 3 4 5

15. Balance load and balance transfer transitions are timely.

1 2 3 4 5

16. Company representatives exhibit interest and willingness in serving.

1 2 3 4 5

17. Customer care representatives take initiatives to inform and secure the new products and services for valued customers.

1 2 3 4 5

18. Company facilitates customers in understanding the different features and their proper execution with 100% confidentiality.

1 2 3 4 5

19. Company representatives use your name during conversation.

1 2 3 4 5

20. You feel appreciated and valued as a user of your mobile company?

1 2 3 4 5

21. How do you rate mobile company (whose services your are using) as compared to other mobile operators?

1) Very poor 2) Poor 3) Average 4) Good 5) Excellent

22. Any recommendations / suggestions for your mobile company for improvement.------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9. Recommendations:

Mobilink

• Launch few packages in per second billing in pre-paid.• Location updater is very important feature should go for it.

• New markets like AJK and NA are showing the red alarm should focus on it and align the marketing strategy

• Customer retention is the question of existence, improve the responsiveness to customer’s issues and provide permanent solutions.

• Launch the “Waseela” as early as possible after complete home work, to take benefits of Telenor campaign

• Reduce OPEX, it would be going to strike very badly as the price wars already have taken the profit away.

• Spread the converge of Infinity and EDGE/GPRS otherwise Telenor USB will take every ting away.

• Address Quality of services on emergency basis.

Telenor

• Strong focus is required in branding as the competition is very tough.• More efforts are required in building the image of Telenor as

corporate socially responsible.• Remove the operational issues in easy paisa as soon as possible

otherwise competitors will take the advantage of your campaign.• Have close study of Mobilink distribution scheme which has proved a

success mark of Mobilink and align your strategy or make the better one.

• Make more and effective personality associations of the brands• Put more efforts in Persona image.• Change the Talkshawk image little more as per new requirements of

market.• Apply the experience of AJK and NA in whole Pakistan to have better

results.• Keep going and hold up future is yours, it’s the matter of temperament