Acknowledgement

I am thankful to God Almighty who has enabled me to finish this report, praise to

Hazrat Muhammad (P.B.U.H) who is forever torch of guidance for mankind. It was

very interesting as well as tough task for me. I completed it with the help of some nice

people.

Secondly, I’d like to thank my Mother, my family member and friends for always being

there in rough times, supporting me and helping me in every way possible throughout

the duration of this project. My institution, Allama Iqbal Open University, has done a

superb job in training me throughout the course of my degree for this project. Special

thanks go out to Mobilink’s Management Mr. Abdul Hadi Dar (Regional Manager

Corporate Sales Faisalabad) & Mr. Muhammad Masoom Saif (Corporate Manager

Sales) Mr. Syed Iqtidar (Marketing Manager) and all the other colleagues of Mobilink

who provided me with their valuable input during my project.

ALMAN RASHID

1

DEDICATION

TO

MY FAMILY, TEACHERS, AND FRIENDS

2

Serial No. SubjectsPage No.

0 TITLE PAGE I01 COPY OF INTERNSHIP LETTER II02 ACKNOWLEDGEMENT 0103 DEDICATION 0204 LIST OF CONTENTS 0305 INTRODUCTION OF MOBILINK 04

06OBJECTIVES OF STUDYING THE ORGANIZATION

05

07 OVERVIEW OF MOBILINK 0608 ORGANIZATIONAL STRUCTURE 1909 STRUCTURE OF MARKETING DEPARTMENT 2510 FUNCTIONS OF MARKETING DEPARTMENT 28

11CRITICAL ANALYSIS OF THE THEORATICAL CONCEPT RELATING TO PRACTICAL EXPERIENCE

38

12SHORTFALLS/WEAKNESS OF THE MARKETING DEPARTMENT

46

13 CONCLUSION & RECOMMENDATIONS 4814 REFERENCES AND SOURCES USED 5015 ANNEXES 51

Table of Contents

5. Introduction of Mobilink

3

Over the course of the last few years, Pakistan’s telecom sector has flourished

appreciably with more competitors coming in to the market, thus bringing in much

needed foreign investment for the country. This has also led to an incredibly

competitive environment in the telecom sector which calls for the firms being more pro-

active, identifying trends quickly and taking appropriate actions to increase their market

share and profitability.

The project is a detailed overview of the telecom environment, especially with respect

to Mobilink. The project would give a detailed analysis of the internal environment of

the firm itself and the external factors that affect it. During the course of the analysis

quite a few models would be applied to judge the competitive environment, for example

to judge the external environment and competitiveness with in the industry, “Porters

Five Forces Model” would be applied.

The reason for choosing the telecom sector was mainly because of the fact that the

telecom sector has become very dynamic with new marketing campaigns and

advertisements being shown heavily on the media. Being a marketing major, this

industry has always fascinated me and I have been following its progress in Pakistan for

quite some time.

4

6. Objective of Studying Mobilink

As an employee of Mobilink I selected my own organization for the final project on

marketing as till now by entering many other competitors in the market Mobilink is the

market leader, in terms of subscribers pace, coverage, sale, revenue profits and in

corporate social responsibilities.

Following are important objectives of studying the organization:

Studying the organizational structure of the organization and its marketing

department.

Understanding the functions of marketing department.

Analyzing the marketing activities.

Analyzing the marketing structure of the marketing department.

Evaluating the working style of the marketing employees.

Analyzing the weaknesses and strengths of the marketing department.

Considering the communication flow of the marketing department.

To have a hands on experience in marketing department.

To get the exposure of working in excellent environment of marketing

department.

To seek employees increment continuous improvement and enhance

performance goals.

5

7. Overview of Mobilink

7.1 Brief HistoryMobilink is the subsidiary of Orascom Telecom so before going for Mobilink history I

would like to introduce first OT (Orascom Telecom). Orascom Telecom Holding S.A.E

("Orascom Telecom") or ("OTH") was established in 1998 and has grown to become a

major player in the telecommunication market.

OTH is considered among the largest and most diversified network operators i the

Middle East, Africa, and South Asia, and has acquired in early 2008 a license to operate

mobile services in North Korea. Orascom Telecom is a leading mobile

telecommunications company operating in six emerging markets having a population

under license of 430 million with an average penetration of mobile telephony across all

markets of approximately 40%. OTH operates GSM networks in Algeria (Djezzy),

Pakistan (Mobilink), Egypt (Mobinil), Tunisia (Tunisiana), Bangladesh (Banglalink)

and Zimbabwe (Telecel Zimbabwe). OTH had exceeded 74 million subscribers as of

March 2008.

Orascom Telecom Holding S.A.E.("Orascom Telecom") or ("OTH") was established in 1998 and has grown to become a

major player in the telecommunication market. OTH is considered among the largest

and most diversified network operators in the Middle East, Africa, and South Asia, and

has acquired in early 2008 a license to operate mobile services in North Korea.

Orascom Telecom is a leading mobile telecommunications company operating in six

emerging markets having a population under license of 430 million with an average

penetration of mobile telephony across all markets of approximately 40%. OTH

operates GSM networks in Algeria (Djezzy), Pakistan (Mobilink), Egypt (Mobinil),

Tunisia (Tunisiana), Bangladesh (Banglalink) and Zimbabwe (Telecel Zimbabwe).

OTH had exceeded 74 million subscribers as of March 2008.

6

Mobinil OTH's first operation was the Egyptian Company for Mobile Services commonly

known as ("Mobinil"). Mobinil is a market leader serving over 16 million subscribers

representing a market share of 48.8% (as of March 2008). Mobinil is one of Egypt's five

largest companies on Cairo & Alexandria Stock Exchange (“CASE”) in terms of market

capitalization.

Orascom Telecom Algerie OTH witnessed success as Orascom Telecom Algeria SPA (“Djezzy”) was launched

in February 2002. It grew to become the market leader in terms of both subscriber

numbers as well as the quality of telecommunications services provided. Djezzy serves

over 13.5 million subscribers on its network and has a 62.7% market share (as of March

2008).

Orascom Telecom Tunisie Orascom Telecom Tunisie (“Tunisiana”) launched its services in December 2002,

and serves approximately 3.8 million subscribers on its network with a growing market

share of 48.5% (as of March 2008).

Mobilink In Pakistan, the Pakistan Mobile communications Ltd (“Mobilink”) started its

operations in 1994 and, until early 2001, had a market share of 40%. In April 2001,

OTH took over management control of the company. As the market leader, Mobilink

serves more than 31.5 million subscribers, representing a market share of 38.5% (as of

March 2008).

7

Banglalink In September 2004, OTH purchased 100% of Sheba Telecom (Pvt.) Limited in

Bangladesh. OTH re-branded and launched its services as "Banglalink" in February

2005. Immediately after the launch, OTH started its aggressive plans to develop

Banglalink into a leader in the mobile sector by rapidly expanding its GSM network to

provide high quality communications services at affordable prices. Banglalink serves

over 8.3 million subscribers with 21.3% market share (as of March 2010).

OTH has positioned itself as a leader in the region for its diverse GSM operations

with various GSM support and Internet operations. One of OTH's main strategies is to

create its own non- GSM subsidiaries to act as a backbone of support for its regional

GSM operations. OTH has achieved this by dedicating financial, technical and

management resources for supporting its subsidiaries. This includes network support

and installation of GSM operations, equipment procurement, handset procurement and

distribution companies, Value Added Services, and Internet operations. OTH is

dedicated to providing the best quality services to its customers, value to shareholders

and a dynamic working environment for its nearly 20,000 employees.

OTH established a strong presence in the GSM Association (the world's leading

wireless industry representative body) only five years after its inception. OTH's

Chairman and CEO, Mr. Naguib Sawiris, was selected to join the GSM Association's

CEO Board in 2002. OTH's stocks are traded on the Cairo and Alexandria Stock

Exchange (CASE), (under the symbol ORTE.CA, ORAT EY) and on the London Stock

Exchange (where its GDR is traded under the symbol ORTEq.L, OTLD LI).

8

Brief History of 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 30 million and

growing. We pride ourselves on being the first cellular service provider to operate on a

100% digital GSM technology in Pakistan that also provides state-of-the-art

communication solutions to its customers.

Mobilink is Pakistan’s leading cellular and Blackberry service provider. With

more than 31.6 million subscribers, Mobilink maintains market leadership through

cutting-edge, integrated technology, the strongest brands and the largest portfolio of

value added services in the industry, a broadband carrier division providing next

generation internet technology as well as the country’s largest voice and data network

with over 8,000 cell sites.

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. To achieve this objective, we offer both postpaid (Indigo) and prepaid

(JAZZ) solutions to our customers. Compared to our competitors, 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, we also offer a host of value-added-services to our prized

customers. At the same time, Mobilink places high importance to its coverage, which is

why we cover you in 10,000+ cities and towns nationwide as well as over 150+

countries on international roaming service. In other words, we speak your language,

everywhere.

9

Mobilink's Vision

"To be the leading Telecommunication Services Provider in Pakistan by offering

innovative Communication solutions for our Customers while exceeding Shareholder

value & Employee Expectations".

Mobilink's Mission

To promote Customer Services as a Mobilink Brand

Every customer interaction to be a pleasant experience

To promote Mobilink as a truly customer oriented organization

Mobilink's Values

Total Customer Satisfaction :

Customers are at the heart of our success. They have placed their trust and

confidence in us. In return, we strive to anticipate their needs and deliver service,

quality and value beyond their expectations.

Business Excellence:

Mobilink strive for excellence in all that we do. We aspire to the highest standards

and raise the bar for ourselves everyday. This commitment to delivering world-class

quality translates into unmatched service and value for our customers and all

stakeholders.

10

Trust & Integrity:

At Mobilink, we take pride in practicing the highest ethical standards in an open and

honest environment, and by honoring our commitments. We take personal

responsibility for our actions, and treat everyone fairly, and with trust and respect.

Respect for People:

Our relationships drive our business. We respect and esteem our employees and all

stakeholders. We believe in teamwork, empowerment and honor.

Corporate Social Responsibility:

As the market leader, we recognize and fulfill our responsibility towards our country

and the environment we operate in. We contribute to worthy causes and are dedicated to

the development and progress of the society.

11

7.2 Nature of the Organization

Mobilink is a largest cellular industry of Pakistan and providing services of

telecommunication through voice and data, and also providing the advance voice

communication services that makes the lives of million that much easy ,Mobilink offer

a host of value added services to their valued customers.

Mobilink is also providing the facilities of PCO for people to run an independent

business and also providing business solutions to many corporate firms in the shape of

blackberry; connect card, broad band and wi-max. Mobilink along with their business

also helping Pakistan for a better tomorrow, Mobilink is a long–standing believer in

giving the portion of its revenues for charitable causes and is making efforts for

bringing about a positive social change for the underprivileged.

12

7.3. Business Volume

Mobilink is private limited company and not registered in stock exchange and as per the

company policy only the below mentioned information can be share for education

purpose ,the below mentioned some information are taken from the PTA annual reports

2006 to 2010 and some are taken from the company internal record ,and all these

information are only estimations.

Financial highlights of last five years are as under:

Years 2006 2007 2008 2009 2010

Market share by

Revenue 65% 65% 68.9% 60% 48.60%

Market share by

subscriber 65% 61% 55% 50% 41%

Total Revenue

US $ million 300M 400M 600M 900M 1Billion

Net profit US $

million 6 12 20 30 70

Total

Investment

US $ million

150 200 300 335.9 591

Gross sales

(by subscribers) 1M 2M 5M 11M 13 Million

Total Coverage

cities/towns/

villages

1000 2500 4000 6000+ 10000+

Total Subscribers

13

base 11M 12M 14M 19M 30M

Source: www.pta.gov.com; & internal records of Mobilink

In the above mentioned table the figures shows that in year 2006 and 2007Mobilink

market share both in revenue and subscribers base was maximum but in year 2008 and

2009 it has been decreased as previous in year 2004 there was few competitors (Ufone

and Zong/Paktel) of Mobilink but after year 2005 two more competitors (Warid,

Telenor) added in the market and market share divide in between. In sales Mobilink did

a good job as from year 2005 -2009 Mobilink sales are continuously increasing by the

good marketing strategies, promotional activities, excellence services and customer

care.

In Mobilink investment also increase for the improvement of network to give the

unmatched services to its valued customers Mobilink’s profits are also increasing as

compare of 2004 to 2008 as Mobilink is truly working well for the retention and

satisfaction of the customers.

14

7.4. Profile of employees

Mobilink hired fully motivated, educated and devoted employees, because

employees are the backbone and strength of any company. Mobilink hired Engineers

for Technical department, MBA’s for Management, HR and for Marketing, M.COM for

Finance department mostly employees from higher management are foreigner qualified

with great exposure of foreigner work style.

All employees of Mobilink are satisfied with the pay structure and other non

cash benefits as Mobilink exceeding their employees’ expectation. Majority of

employees have experience in his particular area but Mobilink also encourage fresh

graduates and masters selection criteria in Mobilink is purelybased on merit base. In

technical and IT and in contact centre the selection criteria is based on test system if

person qualified the test then go further chain of interview with the manager ,director of

the department where he/she implied and at the end final interview with the Vice

President of the department.

Mobilink is always exceed the employees expectation and also provide the

opportunities for career growth through required training and workshops, and Mobilink

is also providing education assistance to their employees for the enhancement of

knowledge and latest studies.

Number of employees working in Mobilink = 4,700 hundreds

Source: Employees of Mobilink

15

7.5. Product Lines

Mobilink’s major products in prepaid are “Jazz” and in postpaid are “Indigo” and

there are many more others value added services and business solutions for

corporate clients.

Post-Paid (Indigo) “Indigo” is the only post paid brand in the Pakistan General philosophy: payment

after the service derived Real Post paid Brand: Indigo-launched in February 2004 elite

market image Freedom plans: The best choice for everyone flexible call rates

Pre-Paid (Jazz) “Jazz” is synonymous with cellular in the country

General Philosophy: payment before the service derived

• Jazz Offerings

• Jazz CD’s

• Scratch cards

• OTAR

• Electronic Voucher Recharge

• Balance Share

Mobilink World Value added services (VAS) of Mobilink falls under the brand name “Mobilink

World” Broad service categories of Mobilink World are business solutions, payment

solution, info solution & fun, some of the popular services are;

• Bolo SMS ,Talking books, Car Crazy ,Love Calculator

• SMS to TV Messaging services, Ring tones, Gup Shup Corner

• Ring tone Club ,Cricket Updates,Mobitunes ,Horoscope,

16

• Yahoo Messenger ,Conference calling, Voice Mail

• SMS Trivia ,SMS Buddy, International MMS, Web SMS Chat

• Lounge 144 ,Mobi Greetings, Kids Corner ,Sports Portal

• Mobile Banking ,Info-Line services, Kisan service ,Job Alerts ,

• Blackberry,Mobisafe,SMS Marketing, Corporate Misconnect cards

• Fax Mail, Stock Watch,PIA Reservation, SO Card, MCA

• Call Forward, Flash Mobile,Mobilink Tourist Guide Mobile,

• Power tools ,Religious Services SMS based Banking Services,

• SMS to Radio Services, Octane Tools Cricket Chat, Ownership Services

and many more.

Getting Connected Mobilink’s competitive advantage has been its aggressive retail presence.

Mobilink’s prepaid product sold under the brand name Jazz is widely available in more

than1000+cities,towns and villages with service code (0300,0301,0302,0303,0304

0305,0306,0307 and 0308) Jazz is the most successful and popular Pakistani brand and

was coined by a team led by Aamir Ibrahim in 1998. Junaid Khan, then the President of

Mobilink, preferred it over the runner up choice 'Buzz'.

17

Product Category Chart

18

Telecom

Post Paid EXECUTIV

MobileConnectionn PCOsLand Line ISPs

Pre-paid

Indigo

MobileConnections

WirelessPhones

PCOsCallingCards

ISPs

JAZZ

WirelessPhones

Source: Employees of mobilink

8. Organizational Structure

Source: Employees of Mobilink

19

President and CEO

VPMarketing

ChiefInformation

officer

Chieftechnicalofficer

VP HR/Admin/Security

ChiefFinancialOfficer

VPCommercial

Directorlegal

affairs

Director Director ThreeDirectors

Director Director SALES CustomerServices

Managers

Directorlegal

affairs

Directorlegal

affairs

Directorlegal

affairs

Directorlegal

affairs

Directorlegal

affairs

Managers

Managers

Managers

Managers

Managers

Definition:Definitions of these rules are given below:

“Company” means Pakistan Mobile Communications (Pvt) Ltd (PMCL), with its head

office at Kulsum Plaza incorporated under the Companies Ordinance 1984 at

Islamabad, Pakistan.

“Head Office” means the place where the main off ice of PMCL is

established.

“Management” means, The President, Officers, Directors & Manager and

Coordinators of the company to whom the relevant powers have been delegated by the

President.

“President” means the president of the Company.

“Chief Officers” means the Vice Presidents / CEO, CCO, CTO, CIO, CFO & VP

HR/Admin at the Head off ice.

“Directors” The in charge of departments directly reporting to the Chief Officer.

“Manager” means the in-charge of a section under a department at by the President /

Head of Department from time to time.

“Specialist” means the employee who is assisting the Manager in obtaining the

objectives of the department.

“Associate” means the employee who is assisting his/her supervisor in the day-to-day

activities.

Main Offices:

20

Mobilink has extensive network of main offices and sales point along that Mobilink is

also giving that task to many franchise and its head office is in Islamabad.

8. Head Office MobilinkPakistan Mobile Company Limited (PMCL/Mobilink) 42-Kulsum Plaza, Blue Area,

Islamabad.

Tel: 051-2273984-9, Fax: 051-2270966

E-mail; customercare@mobilink.net

Offices:Mobilink divide the Pakistan in three different and major regions.

1. Central (Punjab)

2. North (NWFP)

3. South (Sindh)

Mobilink divide further central in central1,central 2,central 3,central 4 and north in

north1 ,north 2 as well as south in south 1,south 2and south 3.Mobilink has its 18 main

offices including head office in different regions and 475 franchises which providing

the services to the whole Pakistan.

Further number of office in different regions;

CentralIn central there are 8 offices, including 3 offices in Lahore, one in Gujrawala, one in

Rahim Yar Khan, one in Faisalabad and one in Sargodha.

NorthIn north there are 3 offices, in Islamabad, Rawalpindi and Peshawar.

SouthIn south there are 10 offices, including 4 offices in Karachi, one in Hyderabad, one in

21

Quetta, one in Nazimabad, one in Gulshan-e-Iqbal, one in Shahrah-e-Faisal and one in

Clifton.

Management Hierarchy

President and CEORashid Khan

Chief Strategy Officer

Tariq Rashid

Vice President Marketing

Bilal Munir Sheikh

Vice President Customer CareIrfan Akram

Vice President Corporate Affairs

Agha Qasim

Chief Technical Officer

Ramy Reyad Kamel

Vice President Sales

Jahanzeb Taj

Chief Information Officer

Irfan Farooq

Head of Human Resources &

AdministrationSadia Ahmad

Chief Financial Officer

Andis Locmelis

Head of Business Analysis and

PlanningFarid Ahmed

22

Strategy and Management Mobilink is led by Rashid Khan who is the President and the CEO. Mr Zouhair

took over Mobilink in June 2003. Since then Mobilink has embarked on an aggressive

growth strategy. Mobilink closed 2003 with 2 million customers. In comparison

Mobilink closed 2005 with more than 11 million subscribers, which makes then the

largest telecommunication service in Pakistan. Mobilink was awarded the license to

operate in Azad Jammu and Kashmir (AJK) on 27 June-2006. The concession was

awarded for a payment of US$ 10 million.

Achievements: Today Mobilink – a company at the forefront of technology stands tall with the

world's strongest brands. Pakistan 's favorite cellular service is the first ever

cellular network to have been awarded with the ' SuperBrands' accolade.

Reliability, innovation, growth and performance above and beyond others is

what sets us apart. We thank all our family members for making Mobilink

indigo and Mobilink Jazz achieve the superbrand status.

ISO 9002 Quality Management System Certification for Billing, Engineering

Departments and CS Contact Center

Implementation of a full Intelligent Network (IN) platform from Siemens for the

Prepaid platform

Largest Call Center in Pakistan, which is there to assist the customers 24 hours

Only cellular service in Pakistan to provide coverage on the M2 motorway

Bilateral roaming in over 120 countries around the world with true international

roaming with over 300 operators across the globe

First mobile operator in Pakistan to offer extensive GPRS Roaming and

Blackberry Roaming services

MOBILINK Gem’s Short Message Service Center allows Vehicle Tracking and

Fleet Management services that are being provided by Trakker (Pvt.) Ltd., under

23

the brand name of C-Track, a company licensed by Pakistan Telecom Authority

(PTA). Trakker currently operates from Karachi but can provide these facilities

at all those locations where GSM coverage is available.

Network

During the last 15 years, Mobilink has set up one of the largest cellular networks in the

country. Currently, we are covering more than 10000+ cities and towns. This has

involved an investment in the company of more than US$ 3.3 Billion. We have 66

Switches and more than 8,000+ cell sites and the number keeps growing at a rapid pace.

Mobilink also have deployed around 6,500km of optical cable.

Years of Business 15

Cities 10,000+

Investment USD 3.3 Billion+

Switches 66

Cell Sites 8,000+

Optical Cable Deployment 6,500 KM

Switches Nokia-Siemens, Alcatel, Huawei

Radio Base Stations Motorola and Alcatel.

Intelligent Networks Siemens

Microwave Equipment NEC and Alcatel

Operating Frequency 900/1800 MHz

SMSC Logica CMG

Source: Mobilink internal record

24

9.0 Organizational Chart of Marketing Department

Source: Employees of Mobilink

25

Vice PresidentMarketing

DirectorBrand Team

DirectorMarketing Operation

DirectorPricing Strategy

DirectorVASLDI

DirectorPublic

Relations

Manager Manager Manager Manager Manager

Specialist Specialist AssociateSpecialistSpecialist Associate Specialist

Associate Associate Associate

9.1 Number of Employees working in Marketing Department

In Mobilink marketing department 65 employees are working, below are the details of

number of employees working in each department;

Vice President 1

Brand Team 18

Marketing Operations 16

VAS /LDI Unit 16

Pricing Strategy 14

Public Relation 5

Total Employees 70

Source: Mobilink internal record

26

9.2 Marketing Operations

Every company needs to manage its marketing activities effectively. Especially the

company needs to know how to analyze the market opportunities, select appropriate

target markets, segmenting the market in proper segments, establishing the effective

marketing mix and manage the marketing efforts effectively. To fulfill these

requirements, marketing department is established in almost all well-known

organizations.

Defining Marketing ObjectivesAccording to Peter Drucker, “The aim of marketing is to make selling superfluous. The

aim is to know and understand the customer so well that the product or service fits him

or her and sells itself. ”

Operations of Mobilink’s marketing department are as follows:

Analyzing the trend of the market and competitions movement of marketing.

Analyzing the customer demand and product development process

Analyzing the quality assurance process and enhance the market share as

compare to competitions.

Introduce new product in the market through research and development

process.

Create the need for the new and existing customers through different loyalty

programs

Run all he promotional activities efficiently and effectively

Public relation

Research and development

27

10. Function of Mobilink’s Marketing Department

Following are the functions of Mobilink’s marketing in details;

Trade Marketing;In this sub department of marketing ,all trade and retail level activities at ground level is

working efficiently and the whole department is responsible for the marketing of

promotional and sales activities of the Mobilink for trade and retailer.

BTL (on ground activity);This sub department of Mobilink’s marketing is responsible for the land and site

acquisition for cell sites, bill boards, sign boards and banners. Along with this it is

responsible for the installation of cable network and server used in cell sites.

Handset Offers;This sub department is responsible for the different bundle offer for corporate groups of

customers and for individual customer for retention and loyalty programs. This includes

the bundle handsets offers and many such related campaigns.

Corporate Social Responsibilities;This sub department is playing very important role for the growth of the organization,

and this department responsibilities are to manage or organize all the community

welfare related activities for the Pakistani nation following are the activities;

28

a) Donations for Community welfare:Helping Pakistan for a better tomorrow, Mobilink is a long standing believer in giving a

portion of its revenues for charitable causes and is making efforts for brining about a

positive social change for the underprivileged. It has been actively involved in

providing regular donations to Shaukat Khanam Memorial Cancer Research Hospital

and urging its huge customer base to partake with their own donations for the cause.

Mobilink also supports other organizations such as the Khidmat Foundation, Umeed-

enoor and PIMS Children Hospital Islamabad, in making lives of millions in Pakistan

more comfortable.

b) Educating the YouthHigh quality education is the right of every Pakistani. Most of the time this right does

not see the light of the day due to many factors, and one of them is the high cost of

education. Mobilink has decided to help out those deserving students or organizations

however it can.

c) Cultivating the CommunityRespecting and protecting the environment we live in, is a job we must all do together.

The only way to combat poverty is to transform the less fortunate into productive

members of the society. Mobilink has taken steps to alleviate poverty while protecting

and beautifying the environment by collaborating with Khushhali Bank to empower

villagers to own personal mobile phones through micro-financing. Mobilink was also

the official sponsor of the second Human Resource Development Congress held in

October 2004.

d) Encouraging ArtsEach culture is best defined by an artistic expression. To preserve and cultivate art is a

necessity that should be partaken more often in Pakistan. Mobilink has taken the lead in

doing so in many different ways.

e) Encouraging Arts

29

Each culture is best defined by an artistic expression. To preserve and cultivate art is a

necessity that should be partaken more often in Pakistan. Mobilink has taken the lead in

doing so in many different.

f) Revival of Cinema Industry;Promote the cinema industry and starts different campaign for the revival of the

industry through various promotional activities and sponsoring the latest movies in

Pakistan’s cinemas.

Promotional Activities;The one of the functions of Mobilink’s marketing is to handle different promotional

activities for customers’ and for distributors/retailer with smart way.

Public Relations;The functions of this public relation unit are to create good relations with media or with

customers through different surveys and campaigns.

Product Development & Research;This unit’s functions are to develop different new products or value added services for

the customers through various surveys and researches, this unit of Mobilink has a great

worth within the organization.

Pricing Strategies;The function of this sub unit of Mobilink’s marketing is to introduce the price of the

products after the analyzing the market need and customers demand and this is also

responsible for the increase or decrease in the product price.

Business Intelligence Unit;

30

This unit’s functions are to store the data and to do different analysis and trends for the

growth of business.

Loyalty programs;This unit responsibility is to create different loyalty programs for the good relations and

retentions of the customers with company.

Satisfaction Surveys/ Feedback;The function of this unit of Mobilink’s marketing is to conduct various surveys through

different telemarketing team to know the satisfaction level and feedback of the

customers so that if changes required they can implement.

31

10.1 Marketing Strategy Marketing strategy is the practical application of marketing techniques. It is the

analysis, planning, implementation, and control of programs designed to create, build,

and maintain mutually beneficial exchanges with target market. The marketing manager

has the task of influencing the level, timing, and composition of demand in way that

will achieve organizational objectives.

Marketing Strategy of Mobilink:Mobilink is the market leader both in revenue and customers and is the first GSM

service provider of the Pakistan as leader Mobilink strategies are to lead the market and

to get the maximum share of revenue that’s why Mobilink is always adopting leader

ship strategies.

Mobilink’s major strategy involves;

• Be always first in introducing latest technology in telecommunication

• Focus on best quality,customer satisfaction

• Identifying the market style and market trend

• Identifying the customer trend and style

• Identifying the customer needs and demands

• Identifying the new research and development in telecommunication

• Identify the segments within the market

• Understand company's strengths and weaknesses.

• Implementation of 4p's price place product promotions.

• Understand where you want your brands to be in the future

• Internal service quality of customer satisfaction.

32

In Mobilink private when lunch any product they all decision making on higher

management and first the complete analysis of the market and customer behavior all

sensitive issues with point of competitors of current market situation then pre test lunch

the product if they successful then introduced in the market.

10.2 Product Planning, Development & Management:

Mobilink’s new product development process based on following steps;

Idea Generation:A process starts with idea generation, which may draw the Mobilink’s inspiration from

internal sources, customers, competitor's suppliers and others.

Idea Screening:The next step is idea screening which reduces the number of ideas based on the

Mobilink own criteria which the best suitable for the company.

Concept Development:After the idea screening Mobilink research and development management continue

through product concept development in which a detailed version of the new product

idea is stated in meaningful consumer terms.

Test Market:In this stage concept testing new product concepts are tested with a group of current

market target consumers to determine if the concept have strong consumers appeal and

successful in market.

Marketing Strategy:

33

After the successful concept of the new product to proceed to marketing strategy

development in which an initial marketing strategy for the new product is developed

from the product concept

Business Analysis:After the marketing strategy of Mobilink proceed to in business analysis stage a review

of the local and nation market of the sales, costs and profit projections for new product

is conducted to determine whether the new product is likely to satisfy the Mobilink’s

objectives .

Commercialization:With positive results there the ideas become more concrete through test marketing and

finally are launched for commercialization.

34

10.3 Pricing Strategy

Mobilink is a market leader in subscribers and always introduces a reasonable price

for their products with good quality. Mobilink pricing strategies for new products;

Positioning Strategy; Mobilink uses both premium strategy (high price & high quality)

and good value strategy (low price & high quality) for their new products.

Mobilink also uses the “marketing skimming strategy” for new “products and market

penetration’ for existing products.

35

10.4 Distribution Strategy

Distributing the products in the market is one of the major functions of any

distribution center on behalf of the principal. As it is said in the previous section that

Mobilink treats every principal as a separate business unit, so the distribution process

for all the principals vary considerably with each other.

. Extensive nationwide distribution network positioned to lunch new products as well

as service existing ones.

• 18 Offices

• 250 Cities.

• 475 frachises

• enhancing relationships with third party distributors to enhance penetration. Mobilink

divide the whole Pakistan in three regions for the better take up of the distributions and

to increase the sale in efficient way below are the details of the regions;

1. Central

2. South

3. North

36

10.5 Promotional Strategy Mobilink give the desirable information in the print ads to the target market in order

to inform the customers about the benefit of their products. Whenever Mobilink

introduced new products they give ads on print media at regular intervals. So that the

customer is informed about the new product. For their matured products they give ads

with different gaps in the newspapers. The newspapers they use are: The NEWS,

DAWN, and JANG

RadioRadio is a good local acceptance, high geographic and demographic selectivity and low

cost advertisement.

MagazinesThe Magazines advertisement high geographic and demographic selectivity, credibility

and prestige and high quality reproduction, long life and good pass along readership.

Outdoor AdvertisingOutdoor Advertisement flexibility high repeat exposure low cost low message

competition, good positional selectivity

For example

Sing Boards

Bill Boards

Banners

37

Public RelationIt is communication efforts that are designed to favorably influence attitudes toward an

organization, its products and policies. Mobilink is not just a quality product services

supplier, but also a socially conscious corporate citizen. It has been equally involved in

promoting and funding several community welfare projects through aggregate revenue

Mobilink is a professionally managed, organization.

11. Critical Analysis of Theoretical and Practical

Experience

The main objective of this internship program is to critically analyze the theoretical

concepts and relating them with the practical experiences, I studied the Mobilink for

this purpose. I have observed that Mobilink is a market leader both in revenue and in

customers share as they are practicing the right procedure what they have written,

Mobilink is ISO 9002 certified in billing and engineering.

In this organization I observed and noticed that all the department and business

processes are implementing as of theoretical concepts for the better results. Every

department processes are written, and all the staff are implementing on the written

procedures with pleasure and it’s the secret of Mobilink’s leadership. Mobilink is

providing the friendly environment for their internal customers and giving then the

salaries as per the market standards, I observed that in all the departments of Mobilink

all the theoretical concepts are implementing As in Mobilink particular in marketing

department every thing is handling with respect to same as theoretical or what we

studied in MBA as in product development ,marketing research, in pricing ,distribution

and in promotional activities every thing is well organized and planned.

Success and failure of products of Mobilink in Market with reasons:

In Mobilink every product is successful as per the demand and need of the customers,

as Mobilink is a market leader and launch their every product with planning and deep

research, feed back of their existing and new customers. These successful products are

38

for prepaid customers, post paid customer, for corporate customers and for corporate

level business solutions.

Following are the some successful products from the list of successful products;

11.1 Successful Products of Prepaid Customers1. Jazz Budget

2. Jazz Ladies First

3. Jazz GPRS

4. SMS Fever

5. Jazz One

6. Jazz GPRS

7. Jazz Octane

8. Such Jazba

Successful Products of Postpaid Customers;1. Indigo GPRS

2. Indigo Unlimited

3. Indigo Plans

4. Indigo Talk Fiesta

Successful Products for Corporate Customers & Business Solutions :1. Black berry

2. Connect card

3. Mobilink Genie

4. SMS bundle Offers

Reasons:

39

Mobilink is a marketing leader and its every product is very successful in the market

and as per the customer demand and requirement, as before launching any new product

or any value added services for their existing and new customers Mobilink always did a

solid research for the need and requirement of the customers through different channels,

surveys and questionnaires from customers.

Mobilink also keep an eye on the market environment and on the competitors’

activities. Mobilink focus on the strong marketing strategies and before introducing any

product worked on the marketing mix very carefully.

11.2 Major Competitors of Mobilink

In Pakistan, currently five cellular mobile operators i.e. Telenor Pakistan, PTCL

(Ufone), Warid Telecom and China Mobile Pakistan (CMP/Paktel) are providing

services using GSM technology whereas the sixth operator i.e. Instaphone is providing

services using D-AMPS technology.

Above mentioned names of operators are the major competitors of Mobilink.

Warid TelecomWarid Telecom is a joint venture between Abu Dhabi Group & SingTel Group. Abu

Dhabi Group entered into a strategic alliance with Singapore Telecom. Subsequent to

this transaction in July 2007, telecom giant SingTel acquired 30% percent equity stake

in Warid Telecom, Pakistan, for US$758 million. This partnership is part of a strategy

to support Warid Telecom’s continued growth and to enhance its market position.

Abu Dhabi Group, one of the largest business groups in the Middle East and the

single largest foreign investor in Pakistan. It has diversified business interests, offering

strong financial resources and extensive management expertise that result in

commercial success for several institutions.

SingTel’s investment in mobile operations include, Advanced Info Service (AIS)

Thailand, (21.4%), Bharti Telecom Group – India (30.5%), Optus Telecom – Australia

(100%), Globe Telecom – Philippines (44.5%), Pacific Bangladesh Telecom (PBTL) -

Bangladesh (45%), Telkomsel – Indonesia (35%) and Warid Telecom – Pakistan

(30%).

40

Ufone GSMUfone GSM is a Pakistani GSM cellular service provider. It is a subsidiary owned by

Pakistan Telecommunication Ltd (PTCL). It is a brand of Pakistan Telecommunication

Mobile Ltd. (PTML), It was established to operate cellular telephony. The company

commenced its operations from Islamabad on January 29, 2001. As a consequence of

PTCL’s privatization, 26% of its shares were acquired by Emirates Telecommunication

Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been

handed over to Etisalat. During the year July 2005 to June 2006, Ufone continued on

the path to success. The Company further expanded its coverage and has added new

cities and highways. Ufone has network coverage in more than 750 cities, towns and

across all major highways of the country. During the year, as a consequence of PTCL’s

privatization, 26% of its shares were acquired by Emirates Telecommunication

Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been

handed over to Etisalat. During the year July 2005 to June 2006, Ufone continued on

the path to success. The Company further expanded its coverage and has added new

cities and highways. Ufone has network During the year, as a consequence of PTCL’s

privatization, 26% of its shares were acquired by Emirates Telecommunication

Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been

handed over to Etisalat. During the year July 2005 to June 2006, Ufone continued on

the path to success. The Company further expanded its coverage and has added new

cities and highways. Ufone has network coverage in more than 3756 locations and

across all major highways of the country.

During the year Ufone successfully completed the network expansion of Phase IV

in existing as well as in new cities and towns which amounted to more than US Dollar

million. As a result the asset base of the Company has increased from Rs. 20 billion to

Rs. 27 billion. During the year Ufone adopted the policy of simplified tariffs with no

hidden charges,

which resulted in positive impacts on the usage trends of subscribers as well as total

subscriber base, which has increased from 2,579 k in June 2005 to 7,487 k in June

2006. Ufone currently caters for International Roaming to more than 225 live operators

41

in more than 130 countries and introduced International roaming facility for Prepaid

subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore,

Portugal, Thailand, Cyprus, Bangladesh, Uzbekistan, Tunisia, Sri Lanka, Belgium and

Kuwait with lowest rates, featuring no security deposit and activation charges. GPRS

Roaming facility is available with more than 115 Live Operators in more than 85

countries. The company has also been awarded a new License for providing cellular

services in Azad Jammu & Kashmir and Northern Areas.

Telenor PakistanTelenor 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 covered several milestones over the past twenty eight months and grown in a

number of directions, we have grown to become a leading telecom operator in the

country. In fiscal year 2006, we achieved nearly 200% growth in our subscriber base –

the highest in the industry by a wide margin.

We are 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 hilly northern areas to the sprawling deserts in the south, at

times we are the only operator connecting the previously unconnected. We are keeping

ahead by investing heavily in infrastructure expansion. With USD1 billion already

invested, we have extended agreements with our vendors for network expansion and

services until 2009. The agreements, with a potential to result in USD750 million worth

of orders from Telenor Pakistan, are some of the biggest of their kind in the industry.

We are spread across Pakistan, creating 2,500 direct and 25,000-plus indirect

employment opportunities. We have a network of 23 company-owned sales and service

centers, more than 200 franchisees and some 100,000 retail outlets.

Zong (CMPAK)China Mobile is the largest telecom operator in China. It has recently completed

42

the purchase of Paktel. ZONG is the first International brand of China Mobile being

launched in Pakistan. It is meant to empower and liberate the people of Pakistan in

every nook and corner of the country. It will become a part of their hearts, their minds

and bring about a change in their lives that every one desired but few thought would be

possible. The core essence of ZONG is to allow people to communicate at will. Without

worrying about tariffs, network coverage, capacity issues or congestion. ZONG will be

supported by ground breaking communications, trend setting customer service and an

unmatched product offering which will redefine rules of the game and establish ZONG

as a serious contender for the number one spot.

ZONG would offer its customers with entertaining & innovative value added

services and will empower them by giving a wide variety of products, services &

content to choose from. We are privileged to be the pioneering country introducing this

brand with others to follow. And God willing, together we will also make ZONG a

success story for others to try and replicate.

43

Market ShareMobilink is currently the market leader with 41% market share by subscriber and 50%

market share by revenue, whereas Ufone, Warid and Telenor are significantly behind.

CM Pak (Paktel) at the moment has 2% share in both by revenue and subscribers, but

it is expected to increase when they launch their new products. Below is a chart taken

from PTA’s Annual Reports for the year 2009 that shows the division of market share

amongst the current players in the industry.

Market Share of Pakistan's Mobile Operatorsby Revenue,Source;PTA

44

Source: PTA Annual Reports 2009

11.3 Future prospects of the Organization

As Mobilink is a market leader and always pioneer in providing the latest technology

to telecommunication industry of Pakistan. In future Mobilink is planning to launch a

new service for Mobilink’s new and existing customers called ‘V-CON’. This would be

a video conferencing service that Mobilink could launch after it gains the 3G license.

Mobilink will introduce a video conferencing service aimed at its postpaid customers

(Indigo), prepaid customers (Jazz) and for new customers. The video conferencing

would work on 3G technology compatible cell phones like the Nokia N-series. These

cell phones have two cameras, one on either side of the phone, that enable it to be in a

video conference with more than one person at a time. Research has suggested that

videoconferencing is very successful when there is a clear communication need that

45

cannot easily be met using other media. While users feel that video conference meetings

do not have the flow and momentum of face-to-face meetings they are seen to be

particularly good for:

• dealing with routine matters

• dealing with non-controversial issues

• quick informal meetings at short notice

• saving travel costs

• saving time

12- Short-falls/Weakness of the Mobilink’s Marketing Department

SWOT Analysis

Strengths:• Competitive in value added features

• Infrastructure sharing – reducing operational & fixed costs & largest number of

cell sites

• Aggressive promotional activities

• Extensive staff training programs

• Standardized pay structure

• Management is always open to improvement from every level of hierarchy

• Strong brand value

46

• Comparatively better value added services than competitors

• Largest Network Coverage

Weaknesses:• Lack of good coordination with other department

• Instability of network

• Problems with Billing systems

• Inefficient Complaint Management System

• Customer verification and recording antecedents

• High Traffic

• Declining quality

• Poor call service department

Opportunities:• Expansion in new geographical areas

• Providing per second billing

• Providing more value added services

• Expanding into new markets (DSL)

• Coverage Expansion is the fastest way to capture the remaining addressable market –

1st mover advantage. Developing Network in uncovered areas at a fast pace

• Ensure seamless mobility

• Infrastructure sharing – reducing operational & fixed costs

• Use technology to go beyond GSM’s usual limits 35Km which can be doubled

47

Threats:• Pressure on Quality of Service (QoS)

• Increased competition

• Price sensitivity

• Declining quality

• With MNP in place the basic product becoming homogeneous could force mass

exodus of the consumer to better offerings

• MNP conversion cost could have negative implication on ROI

• Technology improvements – a continuous process and threat

• Declining market share

• Decline in profits due to price wars

• New entrants (China Mobile)

• Mobile industry overall is at a saturation point

13. Conclusions & Recommendations Conclusions:During my internship, I have pointed out following conclusions:

Best environment of marketing department.

Strong marketing policies.

Imported machinery.

Qualified and motivated staff.

Strong market leader

Awareness of products

Customer satisfaction procedure is very good.

High financial resources.

More customers in International market.

48

Fully computerized system of production.

RD&C department is working tirelessly.

Every department is working with the standards of ISO 9001 and ISO 14001.

Research product and development procedure is very good.

Marketing strategies are always made to keep in mind the current market

situation and competitor’s analysis.

Marketing personnel continuous visit to existing customer for getting new

orders.

Recommendations: On the basis of my studies and analysis, following areas are recommended to

improve the results of the organization.

The company should arrange the proper training program relevant to technical

knowledge of product; this would improve the efficiency of marketing

department.

Hired only those employees having technical background qualification with

MBA.

Meeting should be arranged with production manager for discussion about

complaints on monthly basis

The company should focus the attention to customer services and proper

complaint handling to improve the company image in the market.

The company should arrange the visit of marketing manager, Regional manager

for the covering, and studding of international market.

The company is going for expansion; therefore company should increase the

staff of marketing department for better results.

Decision making power should be decentralized in each region.

The company should improve the communication process among the different

departments for getting better results.

Appreciation and monetary regard is necessary on better performance of sales

executives.

49

14. References & Sources All of the references and sources from where the data gathered for this report are mentioned herewith for your kind concern. Organization:

Annual Reports of Mobilink

http://www.mobilink.com.pk/

http://www.mobilink.com.pk/Products/index.aspx

http://www.mobilink.com.pk/Publications/AnReport.aspx

http://www.mobilink.com.pk/management/index.aspx

Web Portals:

www.pta.gov.pk

50

www. orascomtelecom.com

Books:

Marketing Management By Phillip Kotler

Marketing by Gary Armstrong & Philip Kotler,11th Edition

International Marketing by Philip R.Cateora, 7th Edition

15. Annexure

51

Annexure 02

52

Market Share of Pakistan's Mobile Operatorsby Revenue,Source;PTA

53