Usb Modems Final Report by GHAYUR KHALID

8/3/2019 Usb Modems Final Report by GHAYUR KHALID

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1MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM.

INTRODUCTION:

The business we have chosen is to launch USB modems under the

banner of THREE.

ABOUT THREE:

3 is part of Hutchison Whampoa's global group of companies. Throughout the

world, under the 3 brand, Hutchison Whampoa provides 3G services to over

17.6 million people in Australia, Austria, Denmark, Hong Kong, Ireland, Israel,

Italy, Norway, Sweden and the UK. Now it is launching its services in Pakistan.

SUBMITTED BY:DRAGON WARRIOR GROUP.

Superior University Lahore.


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USB MODEMS:

Mobile Broadband (USB Modem) is simply mobile or wireless Internet, which

means you get all the benefits of the Internet while you're on the go. MobileBroadband is simpleto set up with no cables, wires or costly installations.Its

fast internet at broadband speeds. It's simple and versatile. Simply plug it into

your Macintosh or Windows laptop and away you go. You can even plug it into

your desktop computer.

WHY USB MODEMS:

Telecom sector is one of the most established sectors in Pakistan. Recently,

this sector has attracted most of the investment. Furthermore, internet has

become the need of the hour. It has become a basic requirement in offices,

educational institutions, manufacturing concerns and for recreational activities.

Mostly internet users in Pakistan are using dial up connections to access

to the internet which is becoming obsolete and most of the users are switching to

broadband or DSL for high speed internet. We shall provide the Wireless

technology which is the latest development in field of internet.

Mission:


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To provide affordable communication services that meets and exceeds

customers' requirements

To deliver high-quality, flexible and innovative internet services that are

cost effective and conducive

To provide complete customer satisfaction on time, every time

Vision:

To be the leaders in providing complete communication solutions to Telecom

Operators, Corporate, Consumers by creating a world-class cutting-edge network

to deliver a broad range of reliable, affordable and quality customer-centric

services in Pakistan.

Objectives:

To create know how of the product in minds of customers by publicity

and heavy advertisement

To cover 40% market shares by providing quality internet service.

To enhance the sales by giving attractive packages.

Pestle Analysis:




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Hierarchy of Market Characteristics

Legal, Political & Economical Factors

Political environment of Pakistan is not stable in the current situation and

country is not progressing in terms of economic growth that was expected.

Environment is non-friendly with investors & technological sector is under

regulation. Inflation is being controlled by state bank and unemployment rate isincreasing day by day with the increase of level of poverty. So, in this condition

introduce our product with low rate & serving our customers with effective

results & attain the maximum satisfaction level of the customers. We are to

launch our product with several offerings like their speed, price etc.

Socio cultural Factors

Pakistan is an Islamic country and most of the people dislike anything extra-

ordinary or something which hurts their culture or subculture. We are targetinghigher level & upper middle level of market and published our advertisement in

English language. In urban areas it is useful and gives the better results as

compare to launch in other rural areas.



Market

Characteristics


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Technological Factors

We are launching new technology with which we can compete in the Pakistan &

existing companies and after these companies are bound to invest in their

infrastructure for expansion and up gradation their existing structure.

Customer Analysis

Customer analysis is either done by secondary data or by

collecting information.

Determination of customer needs:

The needs of the customers have been determined using the

questionnaire and we have analyzed the following needs of the customers.

a) Better service:

It is the first and foremost need of the customers that they want better

internet service. As most of the internet users in Pakistan use dial up connection,

they are fed up of the quality of service provided by their internet companies.

b) Affordable rates:

Another basic requirement and need of the customer is that they want

improved quality internet service at affordable rates. As majority of the

population is middle class, they want affordable internet rates.

c) High downloading speed:

One of the basic problems to the internet service of Pakistan is low

downloading speed, usually up to 6 Kbps. We shall provide download speed up

to 100 Kbps.

d) 24 hour access to the web:

Dial up users are mostly fed up of dialing again and again and offer face

a problem of disconnecting. We shall provide 24 hours access to the web withoutany interruption and failure.

e) Small size device:

Users want such small device as USB modems to be carried anywhere.

Furthermore, they can also avoid the hassle of wires to get connected to the

internet.

COMPETITOR ANALYSIS:




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Competitor analysis helps us to know about the competition which is prevailing

in the market. It also gives the clear view that by using different strategies you

can compete all the competitors.

We can analyze our competitors by checking out their brochures, tariffs, offers,

packages and also by their website.

1) PTCL Broadband

PTCL is providing broadband service to its

customers. It is providing 256 Kbps, 512 Kbps and 1Mbps speed to itscustomers. It is targeting students by providing special packages to

students.

2) Link dot net:

Link dot net is an Orascom Telecommunication company whichhas already won the confidence of people by providing services

through Mobilink. It has entered the market recently and is focusing

heavily on marketing to capture the market.


http://www.link.net.pk/english/default


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3) WORDCALL:

Worldcall Multimedia established a Hybrid Fiber Coaxial

(HFC) scalable network in Lahore thus becoming the first Multi-service operator

in the country, providing cable television and Internet-over-cable. In 2003 they

launched a state of the art HFC network operation in Karachi under Worldcall

Broadband Limited. These are the largest and only national networks capable of

triple play (cable TV, high speed internet/data and telephony). These companies

are also offering metro fiber lease to a number of other telecom / cellular

operators as well as corporates.

4) WATEEN:

Wateen has introduced Wimax technology fir the first time in

Pakistan. It is a Abu Dhabis group company which has already launched

Warid and Bank Alfalah in Pakistan. Financially, they are very strong and

since they are introducing Wimax for the first time, they may turn out to

be our greatest competitors.




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MARKET SEGMENTATION

1) Geographic:

We shall focus on major cities of Pakistan like Lahore, Karachi and

Islamabad.

2) Demographics:

Age: 15 and aboveGender: male/female

Income: 30,000 onwards

Occupation: Students, Businessmen, and Professionals.

3) Psychographics Segmentation:

We will be targeting Upper and upper middle class and corporate culture.

4) Behavioral Segmentation:

Regular internet users who use internet for their official, educational and

recreational purposes.




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TARGET MARKET AND SALES

FORECAST

TARGET MARKET

Target market helps to identify the major objectives and visions of the company

within a specific area, specified by the company management.

Population of Karachi = 16 million. (Approx)

Population of Lahore = 10 million. (Approx)

Population of Islamabad = 1.5 million. (Approx)

Internet users = 4 million (approx)

Dial up users = 3.4 million (approx)

Broadband & DSL users = 600,000 (approx)




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SWOT ANALAYSIS

Strength:

Company Image:

Quality Conscious:

Large No. of diversity businesses:

Sponsorships: Effective advertisement campaigns.

Qualified employees.

Advance Technology used.

Changing lifestyle.

Weakness:

Weak Distribution: They lack behind in targeting the rural areas and

just concentrating in the urban areas Due to high rate of taxes our price are higher

Lots of competitors in the market.

High cost of production

Opportunities:

Increase Population:

Changing social trend: Expansion of distribution net work

Introduction of new products

Capturing of rural areas.

Threats:

Government Regulation:They face problem if government employ

taxes on them which force them to raise the price of their product.




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Competitors

Less awareness of the product

MARKETING MIX

Following are included in marketing mix:

1) Product2) Price

3) Place

4) Promotion

5) People

6) Physical Evidence

7) Process

PRODUCT:

Three USB modem is a consumer good. It satisfies the need of the consumer. It

is available in different packages targeting different classes of consumers. It

offers a complete range of carrier class internet services, broadband for data

along with a host of other value added services and applications to set thestandards for a new era of communications and entertainment in Pakistan.

These services are provided by following two devices:

a) USB plus

b) USB max




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USB plus:

It is a portable and basically indoor device. It can be carried anywhere and

catches the signals through its antennas. It is usually for household consumers

and catches signals through towers and can only be used in the coverage area.

USB max:

It is device whose signal catching power is more and is usually for

corporate and office use. It catches signal from satellite and can be used

anywhere.




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INTERNET:

We are providing Internet connections to the customers in number of

different packages and each package has its own target market. There are two

different packages offered to the customers:

Corporate packages.

Residential packages.

CORPORATE PACKAGES:

These services are usually provided through our USB max Device. Corporate

packages are the packages which are offered to the corporate clients like big

organizations and companies. Then again it is divided into two classes:

a)Shared connections.

b)Dedicated connections.

For shared connections the sharing limit would be 1:5.

For dedicated connections there would be a committed line rate (CLR) offered

by us and it would not change in any condition.




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RESIDENTIAL PACKAGES:

These services are usually provided through our USB plus Device. Residential

packages are the packages which are offered to the customers for their personal

or residential use.

For residential users, sharing limit is 1:8.

PRICE:

As already mentioned that there are two types of devices:

1) USB plus

2) USB max

1) USB plus:

Each connection which is offered to the customers in different packages is

divided on the basis of two classes:

a) Speed

b) Downloading Limit




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2) USB MAX:

For this device, we are offering two packages:

a) Package A:

With this package customer will get 1MB link and unlimited download.

The price of this package is:

Rs 3500 per month

b) Package B:




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In this package, we are providing 2MB speed and its price is:

Rs 5000 per month

Along with the per month charges, the customer will have to pay Rs 2000 as

security for the USB plus and Rs 3000 for the USB max packages.

PRICING STRATEGY:

As we are introducing technological innovation in internet sector,

pricing strategy we have used is SKIMMING PRICING STRATEGY.

PLACE:

As we are launching this service in Lahore, Karachi and Islamabad so

our Head Office will be located in Lahore along with Regional Offices in

Karachi and Islamabad.

We shall distribute our products through our Franchises that will be

located in different areas of these cities. Following is the detail of Franchises:

Karachi : 10 Franchises

Lahore : 7 Franchises

Islamabad: 5 Franchises




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The connection can only be purchased from the franchise and bills will

also be deposited here. The Head Office will monitor all the activities of the

franchises and stock of devices will be issued against a security for each device.

DISTRIBUTION STRATEGY:

We will use EXCLUSIVE DISTRIBUTION STRATEGY whereby our

product will be available at selected outlets and they will be dealing exclusively

in our products.

PROMOTION:

As this technology is introduced for the first time in Pakistan, we

must make sure that people must get awareness of the product. For this, the

service must be promoted in an appropriate manner. Following techniques will

be used for promotion:

1)Print media:

We shall advertise our product in different newspapers like The News,

Dawn , Jang, Nawa-e-waqt, and different magazines like Spider so that we can

create awareness of the product among the customers.

2)Electronic media :

Electronic media is the most effective tool of promotion and advertising these

days. It includes Television, Radio and Websites.

We shall advertise our product in different channels that include news channels,

sports channels, music channels and entertainment channels.




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3)Umbrella Selling:

Umbrella selling is the latest trend followed by various telecom companies toincrease their sales by selling in various colleges, universities and markets. Thus,

by following the same trend, we shall also promote our product to increase its

sale.

4)Billboards:

To promote our product, we shall advertise our various packages on billboards

located at important crossings and buildings of the three cities, where we are

launching our product to position our product in minds of the customers.

5)Sponsorships:

We shall also sponsor various events including concerts and sports

activities to promote our product. Sponsorships is a healthy activity that helps to

promote the product.

6)Road Banners :

We will use road banners at the sides of all busy roads in the area.

Each banner contains necessary information about our product like what new

packages it is giving to its customers. The size of banner differs according toavailable location.

7) Brochures:

We will also use brochures as a source pf promotion. Brochures

will be available in the Franchise that contains the details of the services

provided and also the price details of different packages.




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SALES PROMOTION:

Sales promotion strategy may involve giving incentives to

employees within the franchise to increase walk in sales. Furthermore, sales

team will also be given a target of sales and if they are able to sell more then the

target, they will be given commission on their salaries.

PEOPLE

Our Head office employees consist of: CEO

General Manager

Manager Admin,

Manager Finance

Manager Sales

Manager Marketing

Technical Engineers

CSR in call centers

Our franchise employees are:

Manager

Assistant Manager

Two CSR (Customer Service Representatives)

One Accountant




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Two CSO (Customer service officers)

Two field engineers

Sales Team

Junior staff

RECRUITMENT:

We hire our staff on these bases.

Communication skill

Experience

Personality

Technical knowledge

TRAINING:

We provide training to our employee through:

Case study

Hand outs

Demo

Knowledge about new software, products and services

EMPOWERMENT:

We will also empower our front line employees including call centre

employees and Customer Service Representatives in franchise to take certain

decisions on their own in case of certain situations.

PHYSICAL EVIDENCE:

It involves layout of the head office and franchise which is as follows:

HEAD OFFICE:

Our head office is located at 4th floor Lahore Centre, Main Boulevard, Gulberg

Lahore. The Head Office will have offices of Managers of Admin, Sales,

Marketing and Finance Department.

There will be a call centre to provide information and listen to the complaints of

customers. Technical and field engineers along with Research and Development

team will also have its office located here.




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LAYOUT OF FRANCHISE:

1) Area:

The franchise is spread on an area on 1200 sq feet

Its dimensions are 100ft x 120ft.

2) Managers office:

The managers office is located at one corner of the franchise from where

he can get whole view of the franchise and can keep an eye on all the

activities taking place.

3) Customer Service Representatives:

Two customer service representatives will be providing necessary

information to the customers and guiding the customers according to their

needs.

4) Cashier Room:

A cashier room will be at one corner of the franchise for the facility of the

customers to deposit the amount of their bills and to make such other

payments.

5) Store room:

There will be a store room at the back of the franchise to keep the stock of the

device (modems) to be sold to customers at the time of sales.

PROCESS

The process involved may be categorized as:

a)Standardized

b)Customized




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a) Standardized process:

It is a process or service that is same for every customer. The company

serves in a same way to the customers.

For example, it a standardized process for each and every

customer to fill in the form with necessary personal information and provide

a copy of his National Identity Card to get benefits from the service.

b.Customized process:

It is a process that is performed according to customer

requirements.

For example, a customer may select a package of his own choice

depending upon:

Speed required

Monthly download limit

Flow of Activities:

The process of providing service follows the following flow of

activities:

a) Firstly, the customer is given a form in which he has to provide the

personal information as name, telephone number and address.

b) The customer also has to provide a copy of his National Identity Card.

c) The customer can get the service either by making lump sum payment in

cash or by cheque.

d) In case of any complain, customer may contact the franchise .

e) If he is not satisfied with the service he may return the device and get his

cheques back.




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f) We are looking forward to provide quality service and satisfaction to our

customers.

IMPLEMENTATION PLAN

Sales Objective:

During our first year, we will achieve a sales target by virtue of

which we can reach breakeven point. This can be done through effective

positioning of the product in minds of the customer.

As we have to incur heavy initial cost for the launching of the product, we are

focusing on sales equivalent to our breakeven during first year.

Marketing Objectives:




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We are focusing on capturing 40% of market share of DSL users within Lahore,

Karachi and Islamabad. This can be done by effective marketing that create an

image among minds of the customers about this new product.

Promotional Activities:

We will promote our product through electronic media, print media, road

banners and billboards. In our promotional activities, we will be targeting

businessmen and students who need to carry their internet with them all the time.

BUDGET:

Initial Investment:

We have to bear initial cost of getting license from THREE company which

is a part of Hutchison Whampoa i.e. 10 million $ that will give us the right of

using its name, satellite network and products within Pakistan.

Our other investment will be construction and renovation of Head Office which is

Rs15 million.

For the construction of regional offices, we will need Rs10 million.

Working Capital:

Our working capital requirement will be as follows:

a)Marketing expense = Rs 70 million for first year

b)Salaries = Rs 15 million

c)Rent for use of telecom network = Rs 100 million per annum




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a) Marketing Expense:

As we are launching this product for the first time in market, we need to

focus heavily on our marketing and promotional activities to position our productin customers mind. For this, we have kept an appropriate share for marketing

expenses.

b) Salaries:

Besides other expenses, major portion of our expenses will comprise of

salaries of managers and employees of marketing, admin, finance and technical

department.

c) Rent for the use of telecom network:

We will not set up our own network to provide wireless internet service to

our customers, rather we shall use existing network of telecom companies and pay

them annually for the use of their network.

FRANCHISING

In total we shall have 22 franchises in Lahore, Karachi and Islamabad

located in all areas accessible to people. All these franchises will run according to

rules and regulations of company. These franchises will be sold out against some

security i.e. Rs 1.5 million for each franchise and will be given commission of

10% on each sale. Furthermore, they will also be given commission of 5 % on

amount of bills deposited within the franchise.

Sales Forecast:

Total internet users = 4 million




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Broadband & DSL users = 600,000 (approx)

Target Market (40 %) = 240,000

Approximate sales = 100,000

REVENUE for first year = 100,000 x 3000 = 300,000,000

Operating expenses = (185,000,000)

Profit = 115,000,000




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CEO

ManagingDIRECTOR

Marketing

team

Director

Finance

Director

Sales

Director

Admin

Director

Marketing

MarketingManager

ManagerSalesManagerAccounts

ManagerFinance

Accounts

staff

Financial

Analysts

Manager

Operations

Deputy

Manager

Finance

HRManager

Manager

Research &

development

Manager

Technical

Engineers

Manager

Call

Center

Manager

Franchises

Chief

Engineer CSR Franchises

Field

Engineers


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FEEDBACK:

We will give feedback through following sources:

Call centers:

In case of any complaint or feedback, customers may call our call

centre and provide suggestions which will be taken into consideration by

management and other authorities.

Websites:

We will also get feedback through our website where customers may

provide important suggestions for improvement of service. Furthermore, there

will be various discussion and feedback forms available on website which would

provide important information to us,

Employees:

Employees are also an important internal source of providing feedback

whose suggestion will help improve the quality of service to be provided to the

customers.

Franchise:

We will also have suggestion boxes in our franchises where customers

provide feedback and suggestions regarding our service and these points will be

taken into consideration by the management.

Research and Surveys:

We will also conduct research and surveys whereby we shall get feedback

from our customers and implement the results in our strategies to improve the

standard of our service and provide customer satisfaction.




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CONTROL

The feedback from call centers is reported by Manager Call

centers and that through franchises is reported by ManagerFranchises to Manager Operations. Manager operations

ultimately reports to Manager Admin who along with

Managing Director implements it into strategy. While

formulating strategy, it is also ensured that is it according to

the mission and objectives of the organization. Furthermore,

an internal audit system will be introduced in the

organization that ensures smooth working environment and

prevent any malfunctioning within the organization.


Documents

Usb Modems Final Report by GHAYUR KHALID