Marketing Plan for Mobilink

Prepared by Muslim Shah

MBA 1st “C”

Submitted to
Madam Shawana Afridi
1.INTRODUCTION
Mobilink GSM is a telecommunication services provider in Pakistan. It started its
operation in 1994. mobilink has become the market leaders both in term of growth as
well as it has the largest portion of customers.
Mobilink has targeted all type of people that are the every common person,
businessman, students, etc. they have developed different products with different features
and packages to make loyal their customers. Their main competitors are Telenor, Ufone,
PTCL, and Warid who are compete with them to capture high portion of market shares.
Because of high competition, the market is saturated and the competitors try to capture
market through product differentiation and pricing.
2.EXECUTIVE SUMMARY
Now Mobilink has planned to bring a new innovative product, Video Calling to
capture high market share. That product will be based on differentiation from the
competitors. The innovative product has different features which meets the customer’s
communication needs. The target market will be post paid customers at a start because of
high price of setup and calling, and then the company will target prepaid customers also.
The market has had growth and the usage growth increased from 87 million to 89
million in 2007-08. The growth has been estimated to 86 million in 2009. The market
share of Mobilink is 35% and with a new product their new marketing objective is to
capture 3% more. Mobilink has also estimated their revenue of first years that is
$140,000 and that is the Mobilink financial objective.

SITUATIONAL ANALYSIS

The mobile industry growth is going high every year. Today there are five major
competitors. They compete with each others for their customers, increasing the services
provided, reducing their rate and they try to have an aggressive marketing campaign.
Simply we can say the competition is heating up in the telecommunication industry.
According to Pakistan Telecommunication Authority (PTA), the total number of
subscribers reached to more than 89 million to 89,325,296. This is a positive increased of
41.4% from December 2008. Although that is phenomenal growth, analysts believe that it
would be higher if the taxes remained constant in the financial budget. To avail this
opportunity of higher the trend of mobile subscribers, the Mobilink must target a specific
segment and offers an innovative product to capture the market high shares.
3.MARKET SUMMARY

Mobilink has full information about the market and knows a great deal about the
common attributes of the prized customers. This information can easily make Mobilink
capable of finding customers needs and to produce product to fill these needs.

3.1. TARGET MARKETS

Every common person, businessmen, students and the people from all the classes of the
societies are the target market for Mobilink. But at the start main typically target markets
will be postpaid customers. Because these customers are usually from upper class and
this segment result in handsome revenues for the Moilink. After one year, mobilink will
target the prepaid customers also.

3.2 MARKET NEEDS

The needs and demand of customers for communication is going high. Therefore all
competitors try to providing the communication facility with a range of different
packages with reason able price. Customers are familiar with SMS, email, voice call,
internet and MMS etc. now costumers wants product which has not only the functions of
these but it must be different from existing packages and services. It means custmers
want quality base services. Therefore mobilink has brought a new product which has not
only the existing feature but it has a new innovative feature and that is the video calling.

3.3. MARKET GROWTH

Due to higher competition, the price per package of product is going down of each
telecommunication company. But market has had growth and the usage growth increased
from $87 million to $89 million in 2007-08. The growth has been estimated to $96
million in 2010.

4.SWOT ANALYSIS
 4.1STRENGTHS

Following are the strengths of Mobilink:

• Strong brand image and awareness:
• Innovative and differentiate product:
• Large distribution network: It has large distribution network with franchises,
retail outlet, stores and small shops. It has more than 200 franchises; more than
700 retail outlets. Therefore Mobilink distribute their innovative product any
where in Pakistan.
4.2WEAKNESSES:

Following are weaknesses of mobilink:

• High setting cost: The weak point of this new innovative product is high
installment cost. because in Pakistan its too difficult to launch such high services
• High prices: High type of services will bear high charges. Therefore Mobilink
will charge high prices because of its cost. This can brought a problem for
mobilink.
• Easily copy by competitors: The competition is so high. Every competitor tries
to capture the market customers by every possible products and services. So the
Mobilink new can easily imitate by competitors.
4.3OPPORTUNITIES:

• Customer demand and market growth: The demand for telecommunication

services increases over times. The number of subscribers reached to 89 million at
the end of 2008. So it is a big opportunity for Mobilink to increase the demand
and to cope with growth.
4.4THREATS:

• High tax rates and government pressure to increase the SMS charges is a threat
for the company new product.
• Political stability and current war in swat region is hurting the growth of the
company, and if this situation continues to prevail then it will badly affect the
goodwill of the company new products.
• Domestic and foreign competition is increasing day by day and price war has so
intense that it’s difficult for Mobilink to retain its customer’s base.
5.COMPETITORS
Mobilink has following competitors
• Telenor
• Ufone
• Zong
• Warid
• PTCL ( fixed)

Mainly five companies operating in telecom industry in Pakistan are competitors of

Mobilink. Companies are Ufone, Telenor, Zong, Warid Tel and PTCL. Ufone and
Telenor have proved to be the tough competitors of Mobilink because of their
competitive strategies to attract the customers. Both the companies have been able to ring
innovation in their services due to which mobilink has lost some of its market share.
Zong is a newly entrant firm in the telecom industry but still it has managed to attract the
customers with the high coverage and low price and innovative packages it has customer
base of 6 million.

Another competitor of Mobilink is PTCL, which has also managed to provide quality
services and innovative packages to the customers; it is also a competitor of Mobilink in
broadband service. Warid is not performing even though it is operating for number of
years but it has failed to bring any innovation in its services
6.PRODUCT LINE EXTENSION
Currently mobilink is providing four main types of the products and services to add value
to its customers.
• Indigo
• Jazz
• Mobilink PCO
• Mobilink Infinity

INDIGO:
Indigo is post-paid service especially designed for the business class and
people belong to elite class. It is designed in such a way that it provides
additional value added services to its users but charges are comparatively higher than
JAZZ.

JAZZ:
Jazz is a prepaid service provided by Mobilink, includes variety of
packages. Mobilink is bringing innovative services in jazz, that’s why
Mobilink prepaid subscriber’s base is increasing day by day and Mobilink is
spending a lot on the advertising of Jazz packages to create awareness
among the customer.

MOBILINK PCO:

Mobilink PCO is a fixed wireless phone that has special PCO functions capability. The
set has specifically been designed while keeping in mind the local retail environment
and the needs of PCO retailers. A couple of distinguishing features of the models are
the single LCD display on the facade and dedicated “Jazz Load” key. Mobilink PCO is
aimed at bringing prosperity and happiness for all the people throughout Pakistan by
giving higher returns on low investment. It's a complete self-employment solution for the
people of Pakistan, fulfilling their dreams and aspirations.

MOBILINK INFINITY:

Mobilink has recently started broadband service in Pakistan,

which is far better than any other service provider in Pakistan.
Apart from pricing, services, response time, customer support,
reliability and network uptime are other features that would come under consideration in
the long run.

6.1. PRODUCT OFFERING

Mobilink now has decided to extend the existing product line by adding new product that
is Video Calling. Along the all competitors, Mobilink also don’t have any video calling;
because of high technology setup. Mobilink will be the first one who will introduce the
Video Calling for the first time in Pakistan. What will be its features? All customers will
be capable to see one another and will be able to talk face to face through cell camera.
SMS, MMS, Internet, Voice Calling, Web, and other general features will be added to it.

6.2. KEY TO SUCCESS

If the Mobilink meets the market demand by introducing the Video Calling along with
customer satisfaction, we can say the company has achieved keys to success. If these
keys to success are achieved, it will become a profitable, sustainable company.

7.MARKETING STRATEGY
Marketing strategy of Mobilink is
“To come up with innovative products and tariffs and to remain competitive”
Marketing strategy of Mobilink doesn’t focuses on attracting new customer rather it aims
to retain the current customer through low prices, innovative packages and products.
Marketing strategy also supports the objective of retaining customers.

7.1. OBJECTIVES
Mobilink has set certain objectives for the innovative to be achieved over years.
.Following are the objectives of the Mobilink.

• To capture the 3% more share of existing market.

• To achieve the target of $140000 revenue in first year.
• To prepaid customers will be target in next year.
• To introduce innovative products in saturated market.

7.2. CORE COMPETENCIES

There are several areas, where mobilink is doing well. Core competencies (strengths)
of mobilink are given follows:
 • Strong Brand Name: Mobilink has been able to develop strong brand name
through heavy coomunication using different modes. Just because of this strong
brand name, people are unable to forget jazz and indigo even in presence of many
other companies.
• Economies of scale: Due to high level coverage and customer base, mobilink has
achieved economies of scale, which is now strength of Mobilink.
• Culture: Mobilink has such a culture that encourages cooperation and
coordination among employees. This strong culture has also become the reason of
success of Mobilink
• Employee Excellence: Mobilink has employees with strong knowledge base, and
mobilink has been able to attract highly qualified employees with good
compensation packages, and provision luxurious facilities.
• Automated System: IT department of mobilink has introduced fully automated
system for the convenience of its employees; such systems are used for every
thing, for performance appraisal, leave request etc. this system has made the job
of employees very easy
• Technical Department: Mobilink has very strong technical department, it has
2000+ highly qualified engineers, and this department has become the strength of
Mobilink.

7.3.TARGET MARKETS
The target markets of Mobilink are of both their core customers of prepaid and post
paid. Prepaid customers are middle class and upper middle class. The most portion
market share Mobilink has gain from prepaid customers. These are those who can afford
luxury goods but not up to high level. While Postpaid customers are of upper class. They
can afford luxury goods of high quality for money. Their main focus is on quality and
ready to pay high price.

The Mobilink has targets upper class customers for Video Calling services, because video
calling will be expensive as compare to voice calling. The reason of this is high
installment cost and government taxes. Post paid customers will be easily able to pay for
it. After one year, the prepaid customers will be also target.

7.4. POSITIONING
Mobilink will position their products in the mind of their customers by gaining
competitive edge in existing market. For this purpose Mobilink has used cost leadership
and differentiation corporate strategies. By introducing new creative and innovative
product, Video Calling Mobilink will compete with all its competitors easily. Its
management is also able to use its vast experience to make loyal their customers.
8.STRATEGIES FOR VIDEO CALLING
The primary objective of Mobilink is to position as the market leaders by offering
innovative and creative products. Therefore its first strategy will be customers’ product
awareness strategy concerning the offering product and then develop the customers’ base.
8.1. PULL STRATEGY
Current marketing strategy of Mbilink is emphasizing a lot on the advertising through
TV, radio and bill boards. Reason is that Mobilink has come up with variety of new
packages with different tariffs and purpose of the pull strategy (advertising) is to create
the awareness among customers and to create the demand from the customer end.

8.2 PRICING AND SKIMMING STRATEGY

Mobilink is charging high prices at start in this new marketing strategy, so to remain
competitive in this worsen situation.

8.3 Distributions strategy

The Mobilink will communicate this product by presenting different beneficial features to
its existing customers. This message can easily communicate by using its own Web side
and its existing products JAZZ and INIDIGO through text messages. The second
marketing method will be advertisement.

9.MARKETING MIX
Mobilinks marketing mix is consists of distribution, promotion, advertising and pricing.
9.1. CHANNEL OF DISTRIBUTION
Mobilink will use a direct to consumer distribution model. Mobilink has developed
number of customer service centers and have dealers in the following cities.

• Lahore
• Islamabad
• Karachi
• Peshawar
• Kohat
• Faisalabad
• Queta
• Dera ismail khan
• Abbotabad
9.2. PROMOTION
Mobilink always tries to develop innovative products at reasonable price and available to
target market. Mobilink usually promote their products on advertisement.

9.3. ADVERTISING
Mobilink will offer its new innovative products through their own Website and existing
network through text messages. Mobilink advertisement based on televisions add and
magazines.

9.4. PRICING
Simply defined, pricing is the amount of money charged for a product or service Price is
the only element in marketing mix that produces revenues. Mobilink will charge price
based on its total cost, because is too much expensive.

10.FINANCIAL ANALYSIS
 This represents the financial overview of Mobilink related to marketing activities.
Mobilink will address break even analysis, sales forecast, expense forecast and indicate
how these activities link to the marketing strategy.

10.1. BREAK EVEN ANALYSIS

In this method our sales and cost will be on the basis of estimation.

$6000

$3000

$0

($3000)

($6000)

($9000)
$0 3500 7000 10500 14000 17500

In the above diagram, on x-axis we have estimated cost while on y- axis we have
estimated revenue. Our break even point is $14000, because at that point revenue and
cost become equal. It is also called cost benefit analysis.

10.2. SALES AND EXPENSE FORECAST

Sales forecast represents the estimated future sales of company. This will help the
Mobilink to increase their operation according to estimated sales.

Monthly sales forecast

sales 2008 2009 2010
Total sales $550000 $770000 $890000

While expense forecast is the estimated expense budget that the company will used to
promote and advertised their products. So it will help the Mobilink to keep the
department on target.
Estimated Monthly Expense Budget
Marketing Expense Budget 2008 2009 2010
Website $3510 $2500 $1400
Advertisement $12500 $21000 $26300
Printed Material $2150 $2300 $2510
Total Marketing Expense $18160 $26800 $20210

11.IMPLEMENTATION
During Mobilink product promotion, we identify the marketing programs that are
marketing plan, website completion, advertising campaign etc with its starting and ending
date plus estimated budget. So the Mobilink must complete each activity on time and
budget.

Implementation Plan
Milestones Start date End date Budget Manager
Marketing Plan 1/1/09 2/1/09 $0 sajjad
Completion
Website 1/1/09 4/14/09 22500 Ali
completion
Advertising 1/1/09 7/22/09 $6400 Sajjad
Campaign
Development of 1/1/09 11/30/09 $0 sajjad
distribution
Channel
Totals $28900

11.1. METHODS ADOPTED FOR EVALUATION AND CONTROL

 Evaluation and control are very necessary to determine that to what extent, targets
have been achieved and if not, then what are the problems in the way of achieving
targets, and hit how targets can be achieved.
Mobilink uses “Balance Scorecard” for the purpose of monitoring and evaluation.
Balance scorecard is performance management system that not only considers financial
measures but also customer, business processes, and learning measures. Objective,
targets, initiatives of each perspective are set and work as benchmark. And then balance
scorecard provides feedback that whether the strategy is actually being implemented as
Balance Scorecard covers following measures:

• Financial Perspective
• Customer Perspective
• Business Process Perspective
• Learning and Growth Perspective

FINANCIAL PERSPECTIVE
It includes the financial measures like Mobilink has profitability,
CUSTOMER PERSPECTIVE:
It includes measures like mobilink has customer satisfaction, customer retention, and
market share.
BUSINESS PROCESS PERSPECTIVE:
It includes measures like mobilink has cost and quality. These are for business processes
like procurement, production and order fulfillment.
LEARNING AND GROWTH PERSPECTIVE:
It includes measures like mobilink has employees’ satisfaction, employee retention, skills
etc.
All the above four perspectives are not independent, rather there is a connection between
them, like better learning leads to good business perspectives which is helpful in better
customer’s and financial performance.

11.2. MARKETING ORGANIZATION

Interflow communications Private Limited is one of the best marketing and advertising
company, will be responsible for all marketing activities; because all these activities will
be under the control of this company.

1. REFERENCES
♦ Www.Mobilinkgsm.Com

♦ Kotler, Philip & Armstrong, Gary “Principles of

Marketing” (ed. 10th). Pearson: Prentice Hall

♦ Kotler, Philip “Marketing Management” (ed.

12th). Boston: McGraw-Hill

♦ MR Faaiz Zaheer (Senior Analyst), Strategic

Planning and Business Development, Mobilink
Islamabad.

♦ "The Marketing Imagination"

♦ J. B. Quinn, "Strategies for Change: Logical

Incrementalism" (Richard D. Irwin, 1980)

♦ Baker, Michael the Strategic Marketing Plan

Audit 2008. ISBN 1902433998

♦ http://www.marketingplannow.com/index.asp?
page=2086

♦ http://pagesperso-
orange.fr/pgreenfinch/mkting/mkting5.htm

♦ http://www.netmba.com/markteting/plan.