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Principle Of Marketing Final Project Submitted by:

Ali Zulfiqar (BBA 02103040) Salman Saleem (BBA 02103237) Waji-ul-Hasan (BBA 02103235) Omer-bin-Khalid (BBA 02103038) HarisMumtaz SohaibMansoor

Section C Submitted To: Sir, Zesshan

Lahore Business School (LBS)

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Pakistan Telecommunication Limited (PTCL)

                 Overview Organization Historical Background About Company Vision Mission Statement Firm Customers Business Description Product & Services SWOT Analysis Organization Chart Market Mix Change Address Bill Procedure Bill Amount Package Activation CONCLUSIONS

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Overview Organization:
Pakistan Telecommunication Company Limited (PTCL) is the largest telecommunicationcompany in Pakistan. This company provides telephony services to the nation and still holds the status of backbone for country's telecommunication infrastructure despitearrival of a dozen other telcos including telecom giants like Telenor and China Mobile. The company consists of around 2000 telephone exchanges across country providinglargest fixed line network. GSM, CDMA and Internet are other resources of PTCL,making it a gigantic organization. The Government of Pakistan sold 26% shares andcontrol of the company to Etisalat in 2006. The Government of Pakistan retained 62% ofthe shares while the remaining 12% are held by the general public.

Historical Background:
1947 Posts & Telegraph Dept established 1961 Pakistan Telegraph & Telephone Deptt. 1990-91 Pakistan Telecom Corporation 1995 About 5% of PTC assets transferred to PTA, FAB & NTC. 1996 PTCL Formed listed on all Stock Exchanges of Pakistan. 1998 Mobile(Ufone)& Internet(PakNet)subsidiaries established. 2000 Telecom Policy Finalized 2003 Telecom Deregulation Policy Announced  2006 Etisalat Takes Over PTCL's management        

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About Company:
From the humble beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, PTCL has been a major player in telecommunication in Pakistan. Despite having established a network of enormous size, PTCL workings and policies have attracted regular criticism from other smaller operators and the civil society of Pakistan. Pakistan Telecommunication Corporation (PTC) took over operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. This coincided with the Governments competitive policy, encouraging private sector participation and resulting in award of licenses for cellular, cardoperated pay-phones, paging and, lately, data communication services. Pakistan Telecommunication Corporation adventured on its path of development in December 1990, as it took over the operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. On the other hand, pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTCL, and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be PTCL in two separate placements. Each had a par value of Rs.10 per share. These vouchers were converted into PTCL shares in mid-1996. The Government had a competitive policy, encouraging private sector participation and resulting in award of licenses for cellular, cardoperated payphones, paging and lately, data communication services. In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over basic telephony in the country. It also paved the way for the establishment of an independent regulatory regime. The provisions of the Ordinance were lent permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act. The same year, Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of Pakistan. The PTC was segregated into four separated units in 1996. These are as follows;  Pakistan Telecom Company Limited (PTCL)  Pakistan Telecom Authority (PTA)  National Telecom Corporation (NTC)  Frequency Authority Board (FAB) PTCL launched its mobile and data services subsidiaries in 1998 by the name of Ufone and PakNet respectively. None of the brands made it tothe top slots in the respective competitions. Lately, however, Ufone had increased its market share in the cellular sector. The PakNetbrandhas effectively dissolved over the period of time. Recent DSL services launched by PTCL reflect this by the introduction of a new brand name and operations of the service being directly supervised by PTCL instead of Paknet.

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As telecommunication monopolies head towards an imminent end, services and infrastructure providers are set to face even biggerchallenges. Pakistan also entered post-monopoly era with deregulationof the sector in January 2003. On the Government level, acomprehensive liberalization policy for telecom sector is in the offing.In the middle of 2005 Government of Pakistan had decided to sell atleast 26 percent of this company to some private agency. There werethree participants in the bet for privatization of PTCL. Etisalat, a Dubaibased company was able to get the shares with a large margin in thebet. The current President and CEO of PTCL is Mr. WalidIrshad.Last year when Government was going to privatize the company therewas country wide protest and strike by PTCL workers. They evendisrupted Phone lines of some big Government institutions like PunjabUniversity Lahore and many lines of public sector were also blocked. Military had to take over the management of all the Exchanges in the country. It arrested many workers and put them behind bars. Thecontention between Government and employees ended with a 30%increase in the salaries of workers. Many big change events are happening in PTCL at the moment after itsprivatization. These include the VSS (Voluntary Separation Scheme forits employees), ERP (SAP based), restructuring, B&CC (Billing and Customer Care Software) etc. Another seemingly minor change was change of brand identity (logo) that will present PTCLs new face afterprivatization, with greater focus on customer satisfaction and bringingabout of new advancements in telecom for Pakistani consumers.

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Vision:
To be the leading Information and Communication Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders' value'. The future is unfolding around us. In times to come, we will be the link that allows global communication. We are striving towards mobilizing the world for the future. By becoming partners in innovation, we are ready to shape a future that offers telecom services that bring us closer.

Mission Statement:
To achieve our vision by having: An organizational environment that fosters professionalism, motivation and quality An environment that is cost effective and quality conscious Services that are based on the most optimum technology "Quality" and "Time" conscious customer service  Sustained growth in earnings and profitability    

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FIRM CUSTOMERS:
 SERVICES FOR CONSUMERS  SERVICES FOR CORPORATE CUSTOMERS

SERVICES FOR CONSUMERS: These customer are households. And the nature of connection that install at home according to it and charges are charred from them according to domestic level.

SERVICES FOR CORPORATE CUSTOMERS These are business customers such as Firms, Business Organizations, Instructions, Public Call Office, etc. Different packages are given according to the nature and size of the Organization.

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BUSINESS DESCRIPTION: The Groups principal activity is to provide telecommunication services. The Group provides domestic and international services throughout Pakistan and also manufactures telecommunication related equipment.

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PRODUCT & SERVICES:

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Pakistan Telecommunication Company Limited not only Provides Conventional telephone facilities, it also offers optical fiber services to the private sector. We willbriefly discuss below the product lines being offered by the PTCL. Basically PTCLdivide their services into two parts.

1. Services for consumers 2. Services for corporate customers

 SERVICES FOR CONSUMERS These services are basically for the common users (Individual/home users) those use telephone in their home/work place and they are basically non business users. 1. NEW TELEPHONE CONNECTIONS: As mentioned earlier, PTCL is presently the only telecom company, who provided fixedline telephony in the country. So whenever, any Private business concern or any individual needs a new telephone connection for provision of telephone service. 2. VALUE ADDED SERVICES: CLI (Callers Line Identification) Caller Line Identification (CLI): Calling line Identification (CLI) allow customers to identify the caller before picking up the phone receiver. To subscribe to CLI services, a customer needs a telephone set with display capability or a CLI device attached to the phone. 3. PREPAID CALLING CARDS: PTCL calling card is the most popular choice of millions of customers all over the country. It is now available with balance transfer facility and follow on call facility. Fast and easy, nationwide and international access No line rent and no Phone bills 24 hours customer services through toll free number (0800-80800) 4. E-BILL PAYMENT Billing system is a part of customer services so providing connivance to its valuable customers PTCL launched a new billing service which is available through PTCL Calling Card This is another service from PTCL. This service is basically providing billing solutions for the users.

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5. DIGITAL FACILITIES: PTCL offers a variety of features to digital exchange customers like:Hotline Abbreviated Dialing. Call Waiting Dont Disturb Call Transfer on (a) Busy (b) No Reply (c) Immediate Wake up call

Absent Subscriber Code Barring 6. PREPAYMENT TELEPHONY SERVICES (PPT) With the changing trends most telecoms are diversifying their services towards Prepaid solutions .one of such modern era telecommunication service is Prepayment Tele Phone (PPT).It provides the facility to subscriber to load a prepayment Telephony card against their telephone number thereby generating an account on I/N platform and any call made from that telephone will be charged to this account. The service will provide state of art technological facilities to the subscribers.  SERVICES FOR CORPORATE CUSTOMERS PTCL is striving hard to facilitate its valued corporate customers at each level of service. PTCL offers a host of unmatched services to suite the needs of the Corporate Customers. The list of Corporate Services is given as under. For more information regarding any of the following services, PTCL Corporate Customer Centers can be contacted.

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 UNIVERSAL ACCESS NUMBER (UAN):

UAN (Universal Access Number) service is ideal for organizations Engaged in marketing of products or services. Here is a list of business who can avail UAN Service. Banks Insurance Newspapers Credit Card Companies Airlines Travel Hotels Courier Services Shipping Lines Utility Services Fast Food Outlets Trading Companies Consumer Products Stock Brokers Companies

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VOICE MESSAGING SERVICE: (VMS) With PTCL Messaging Service, you can have all for (or Desired) calls recorded whenyou are absent, busy on phone or do not want to attend the calls for any reason. You can,later on at your convenience, retrieve all recorded messages from any telephoneanywhere in the country. Security of message is ensured against eavesdropping through subscribercontrolled password. PTCL VMS: is designed for those who do not want to miss a call or Fax because thatcan be beneficial. Great for anyone owning a telephone or Fax, at home or business.Much more powerful and flexible than answering machine due toMessage options available in your voice mail system. PTCL MESSAGINH PLUS: is designed for small and medium business enterpriseshaving problems with managing telephone message. PTCL MESSAGING PLUS: will definitely handle these problems for you. Advancedmessaging features save time, make you truly mobile and increase productivity.Essential for time-conscious executives, frequent travelers and Professionalgroups. CO- LOCATION CENTERS Pakistan Telecommunication Company has taken land mark decision to establish colocation centers throughout the country. SERVICE CONCEPT This service is basically for telecom data and I.T companies. These companies willinstall their equipment directly in PTCL premises in ready fitted environment. Theprimary purpose is to provide a number of resilient and centralized connection andcontrol facilities in which colocation centers communication can be located. UNIVERSAL INTERNET NUMBER (UIN) 131 UIN 131 numbering scheme for internet services providers, represent exclusive code to each ISP. SERVICE CONCEPT The concept of the service just like toll free 0800 but charges a local call for each connectivity attempt, UIN involves allocation of numbers to individual ISPs who are licensed by PTA.

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VIRTUAL PRIVATE NETWORK (VPN) Communication is the secret of success in todays highly competitive market. When it comes to enabling your enterprise, your communication got to be instant, fast and hassle free. The answer to this corporate need is virtual private net work. SERVICE CONCEPT It is an innovative and intelligent private network to integrate business/enterprises having sub-offices with in a city or nation wide. Without necessity installation of dedicated resources, VPN enables organization to create a private network. DIGITAL CROSS CONNECT (DXX) Telecommunication networks are the most important infrastructure elements of any business today. As the businesses increasingly depend on it, quality of networks is gaining strategic importance. SERVICE CONCEPT PTCL offers flexible and reliable data services solutions through a high quality platform of digital leased line network.PTCL digital cross connect (DXX) network provides the most dependable media for WAN connectivity with more than 200 nodes country wide. ISDN BRI/PRI It is a near broadband experience suitable for household and small/medium sized organizations. CUSTOMERS VIEWS ABOUT PTCL PRODUCT AND SERVICES How are the firms product or services perceived? Usually PTCL is the largest and monopolistic firm in nature, according to customer point of view there is no competitor who is providing the facilities and services like PTCL because of these reasons:  Majority of customers are using services of PTCL in Pakistan  Wide Network  High Speed Internet Provider  Wide Range of Facilities and Value added services

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SWOT Analysis:
STRENGTH: PTCL enjoy monopolyState of the Art International Gateway Exchanges & Satellite Earth Stationslarge earningsgood quality international connectivityCustomer Base of over 4 millionGovernment support. WEAKNESS Image Government organization Image Lack of customer focus Image Outdated people and technology (perception) Lack of aggressive marketing Lack of customer services Ambiguous management style Lack of corporate culture Social responsibility OPPORTUNITY Growth in telecommunication industry More aware and technology understanding consumer a base that is growing at a fast rate Market open for more number of products less dependence on single category or product Opportunity to introduce High Value Added Products / High margin products for the new, more aware consumer Time to establish brand loyalty, Pre-empt competitors, co-opt partners, invest in technology and networks

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Organization Chart:

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Market Mix:

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 PROMOTION PTCL is using following components of promotional mix for the promotion and Publicity of its product/services.  ADVERTISING In promotional mix, PTCLs main stress is on advertising in print and electronic media. PTCL periodically places its advertisements in print media on services like H/Qs hotline 0800-44544, Caller line identification (CLI), Voice Messaging Service, Digital Facilities, PTCL Prepaid Calling Cards, Inquiry 17, Complaint 18, phone bill cards prepaid telephone etc. to remind the customers of these services. Sometimes, corporate ads are also released to print media to mark special occasions. PTCLs Commercials on Prepaid Calling Card, CLI, Voice Messaging, Digital Facilities etc. are also broadcast immediately on electronic media as reminders to Customers.  SALES PROMOTION: PTCL charges 1/3rd rates on national calls from 06:00 pm 07:00 am and local calls are free from 11:00 pm to 06:00 am to promote the usage of its telecom network. Moreover, PTCL offers special rate packages on special occasions like Ramadan Package and EID package, which offer customer reduced rates for specific timings. For Example, In EID Package PTCL charges half rates from 6:00am - 6:00pm and quarter from 6:00pm 6:00 am to attract customers to use its telephone service. These rates result in increased revenue for PTCL and also facilitate the customers to talk to their near and dear ones on these special occasions on affordable rates.  PERSONAL SELLING: As PTCL is enjoying monopoly in fixed-line telephony, the Company has no Professional sales force because the company has not felt any strong need to use the Services of a sales force for increasing the sale of its products. At the moment, PTCLs Customer Services Centers are playing the role of sales outlets. Customers can make telephone calls; send fax messages from these Customer Services Centers. They can also get connected their telephone bills and get duplicate bills from these outlets. However, with the establishment of Marketing Department in PTCL, The marketing professionals are now in the process of inducting professional sales force for the company.

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HOW DO THE CUSTOMERS LEARN ABOUT THE FIRMS PRODUCT AND SERVICES? Majority of the customers learn about the firms product and services from the newspapers ads, franchises and closed ones

 PLACEMENT
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The Head Office of Pakistan Telecommunication Company Limited is situated in Sector G-8/4, Islamabad, which is headed by the President. Besides, it has Regional Headquarters like: Islamabad Telecom Region, Rawalpindi Telecom Region, Hazara Telecom Region Abottabad, Northern Telecom Region-I Peshawar, Lahore Telecom Region (South), Lahore Telecom Region (North), Multan Telecom Region, Faisalabad Telecom Region Southern Telecom Region-I Hyderabad Southern Telecom Region-II Karachi Southern Telecom Region-V Sukkur Western Telecom Region Quetta. Switching network Central region Lahore. These Regions provide Telecommunications services to the customers in their respective areas. Apart from these, PTCL has an Optical Fiber Construction Region Lahore and Optic Fiber System Islamabad, each headed by a General Manager to install, operate and look after optic fiber systems/cables. In each District and Tehsil, an Exchange, Franchisor, Call Centers, Customer Care Centers are available to facilitate the customer needs. WHAT IS THE NEED OF CHANNELS FOR THE PRODUCT AND SERVICES OF THE PTCL? Firm point of view 1- Easy availability of product and services to the customers 2- Easy availability for providing basic services and value added services 3- Easy complaint handling 4- To cover target market Customers Point of view 1- Easy availability of Product and Services 2- Time and Money saving 3- Fast Service System and Resolve Conflict

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HOW WOULD YOU IMPROVE THE CHANNEL ACTIVITIES? Try to convert your traditional channel into remote channel, and install connection on just one call of customer.

PRICE:

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Being a government organization, PTCL is not authorized to determine the prices of its products itself, the Telecom Regulator Authority viz. Pakistan Telecommunication Authority (PTA) fixes the prices of telecom services. The process is such that whenever PTCL intends to increase or reduce the rates of its services, it submits its Proposal to PTA for approval. PTA then calls consumers representatives, journalists and other interested groups for discussion on the proposal. After listening to the viewpoints of all the interested parties, PTA gives its decision. If PTA approves PTCLs proposal, the new rates are enforced. It may be mentioned here that telecom technology is only technology whose rates are on the decline with the passage of time. PTCL also rationalizes its tariff with the passage of time. Tariff rationalization process started in 1997 as part of GoP Telecom Sector policy for privatization of this sector. It was mainly focused on rebalancing the domestic process like NWD, international, local call, line rent etc. Rebalancing is completed by the end of 2008 (as per Tariff rates) with the objective to position PTCL for competition.

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HOW DO THE CUSTOMERS CHANNEL REACT TO THE FIRMS PRICES? Customers react positively due to monopoly of PTCL so they give purely positive response to the prices of PTCL. ARE THERE ANY ACTIONS THE FIRM TO SET ITS PRICES CONSISTENTLY WITH ITS STRATEGY? PTCL rationalizes its tariff with the passage of time in order to beat the competitors. IS THE FIRM USING ANY MARKETING THEORY TO AFFECT CUSTOMER PERCEPTION OF ITS PRICES? PTCL charges 1/3rd rates on national calls from 06:00 pm 07:00 am and local calls are free from 11:00 pm to 06:00 am to promote the usage of its telecom network. Moreover, PTCL offers special rate packages on special occasions like Ramadan Package and EID package, which offer customer reduced rates for specific timings. For Example, In EID Package PTCL charges half rates from 6:00am - 6:00pm and quarter from 6:00pm 6:00 am to attract customers to use its telephone service. These rates result in increased revenue for PTCL and also facilitate the customers to talk to their near and dear ones on these special occasions on affordable rates.

Change Address:

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Bill Procedure Chart:

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Bill Amount Problem:

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Activation:
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Package:
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Products Pic:
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Competitors:
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HOW WOULD YOU IMPROVE THE FIRMS COMMUNICATIONS ACTIVITIES? 1- More focus on electronic media instead of print media because there is war of electronic media now days. 2- Use cyber network for promotion

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Suggestions and recommendations for PTCL:

Leaders can do eight steps which will help them manage change efforts more successfully. These include the following:  Build an environment of trust with the employees in order to create an environment where employees are more open to ideas and more willing to discuss possibilities and problems associatedwith change.  Link the change effort to a common team value in order to help employees feel they can relate to the change effort at a personal level. This increases the desire and motivation to change.  Articulate and communicate a clear message about why the change effort is needed and will help the team. This links the facts and figures supporting the change to the team value. Communication should frequent throughout the effort.  Establish a vision with the employees regarding the possible advantages of making the change in order to help the team define for themselves where the change will take them.  Collaborate for solutions with team members so that employees have the opportunity to identify the driving and restraining forces in the change effort and identify action steps forimplementing steps to implement the change and overcome therestraining forces.  Establish and celebrate wins along the way. The leader should actively orchestrate wins and celebrations so employees can see that the change effort is important and see that changes inbehavior will lead to positive outcomes.  The leader must manage performance around the change. This includes coaching those who need support with the change, disciplining or removing those who continually resist the change or have decided to fight against it, rewarding positive changes, hiring employees who have the new capabilities needed in thechange effort, etc  Constantly monitor the process and the results to ensure that thechange effort is on track.

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CONCLUSIONS:
No doubt PTCL is enjoying monopoly but the time is came when competition will forcecompany to change its policies to become favorite telecom service provider in the market& keep its current place & customer base. The actual working substances are the humanbeings .It goes with out saying that Human resources are the most important in theorganization and so does the Human Resource Department .It integrate all the activitiesand functions of the company like job analysis, recruitment, staffing, training, designingcompensation package, employees appraisal system. Human Resource Department playsthe key role in the hiring, retention, motivation and promotion of the employees.Actually it assign the specified duties to the specified persons in this age ofspecialization. Human Resource manager should be well versed and confident in hisfield. He should be humane, well natured and have go face reading capabilities .All thisensures his success. He should be of the notion victory is not everything, but the way of fighting is.

Reference:
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 http://www.ptcl.com.pk/  http://www.google.com.pk/#hl=en&q=slideshare&oq=slide&aq=0&aqi=g10&aql=&gs_sm=e&gs _upl=6585l7357l2l9065l5l4l0l0l0l0l346l605l21.1l2l0&fp=b68310d47e850994&biw=1152&bih=773  http://en.wikipedia.org/wiki/PTCL  http://www.scribd.com/  http://www.slideshare.net/  http://www.scribd.com/community/students  http://www.slideshare.net/presentermedia/3d-powerpoint-figures-8535223  http://www.ptcl.com.pk/pd_content.php?pd_id=88  http://www.ptcl.com.pk/financials.php?pd_id=45  http://www.ptcl.com.pk/pd_content.php?pd_id=48  http://www.ptcl.com.pk/pd_content.php?pd_id=43  http://www.ptcl.com.pk/press_release.php?pd_id=69  http://www.ptcl.com.pk/press_advertisement.php?pd_id=68  http://www.ptcl.com.pk/tv_commercial.php?pd_id=67  http://www.ptcl.com.pk/events.php?pd_id=63

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