MARKETING

PROJECT PRESENTATION

PRESENTED TO: PROF. IRFAN SIDDIQUESECTION:

ZONG

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.

Sale of Paktel to China Mobile and Rename to CMPak

Millicom International Cellular S.A. on Sunday, 22nd January 2007, said it will

sell its 88.86 percent stake in Paktel Ltd. to China Mobile for $284 million,

which includes the repayment of intercompany debt. The sale implies an

enterprise value for Paktel of $460 million, Millicom said in its press release.

Merrill Lynch advised China Mobile on the transaction.

On 4th May 2007, Paktel was renamed to CMPak. And then, on 16th May

2007, China Mobile announced that it had upped its stake in CMPak to 100%.

Moreover, PTA (Pakistan Telecommunication Authority) has announced that

it may resolve the frequency issue with China Mobile, as it was one of the

main reason for pullout by Millicom International Cellular S.A.

CMPak has now rebranded Paktel to Zong

MISSION STATMENT

The Company upholds its core value in earnest, namely “Responsibility

Makes Perfection”. With “Communicate a Boundless World and

Construct an Information Society” as its mission statement, the

Company strives to become the “Creator of Superior”.

VISION

“With perfect sincerity and integrity, zong will strive to fulfill our triple-sided

responsibilities:

Our economic responsibility, our social responsibility and our environmental

responsibility.”

The Company will keep its commitment to being an outstanding corporate

citizen and will fulfill its promises with utmost integrity, and it will continue

its efforts in innovation and pursue ever greater perfection without resting on

its laurels in order to achieve the harmonious development of the Company,

the society and the environment.

AIM & GOALS

It aims to build an “OMNIPRESENT” mobile network to provide a colorful

set of mobile communication applications with “OMNIPOTENCE”, to

promote the citizen’s level of “INFORMATIONALIZATION” and enhance

China Mobile’s competitiveness at an international level.

CULTURE

The fulfillment of corporate responsibility requires the involvement of every

employee. The Company is actively cultivating a culture of “Accountability”

within the Company and, to this end, the Company always reminds its staff

of the importance of assuming responsibilities as well as maintaining

exemplary behavior.

ENVIRONMENT

MICRO:

Customers:

Zong will generate economic and social benefits for itself and for the society

through discovering and meeting the customer’s needs. The customers are

the foundation for the sustained development of zong.

Competitors:

Zong is competing with members of the same industry in a rational,

effective and orderly manner in order to promote the development of the

industry. Its main competitors are Mobilink, Ufone, Warid and Telenor.

The Public:

Zong believes that development in the long term cannot be achieved

without the sustainable development of the society and the environment.

Zong is always concerned with the interests of the public that takes part in

the development of the society and environment and, on the other hand,

also benefits from a well-developed society and a harmonious environment.

Intermediaries:

Zong have many franchises in different areas of the country and their

responsibility is to deliver as good services as they can to their customers

with friendly environment.

Company:

Company itself effect its internal environment. As the top management of

zong plays a vital role in designing the marketing plans and marketing

management takes other company groups into account. Marketing managers

of zong make decisions within the strategies and plan made by the top

management.

MACRO:

Demographic:

As demographic environment is of major interest of marketers because it

involves people and people make up markets. As our country population is

increasing day by day so the use of cell phones is also increasing apace.

Mostly teenagers are using the zong connection.

Economic Environment:

The economic environment of the country is not much good because of a

slump in our economy. Zong charges lowest rates according to the buying

power of the people of our country.

Natural Environment:

Zong is committed to provide services to customers in an environmentally

friendly manner. To promote a sustainable development, they protect the

environment and makes economical use of its resources. Country has all the

resources which company needs for its development and these are same for

every organization.

Technological Environment:

Technolgy is the most rapidly changing factor of these days and it also

changes the ways that organization are structured. So zong is using the

latest technolgy present in our country in order to satisfy its customers.

Political Environment:

Zong has to obey all the rules and the regulation that are applied in this

country by the law department and the government sector. As Pakistan is

having great relations with China so the government of Pakistan supports the

company as much as it can.

Cultural Environment:

Pakistan is an Islamic country and it has its own social and cultural values. So

Zong has to follows these values in order to get good response from their

customers. They have taken step to comfort their users with Islamic and

cultural offers. Still looking forward to challenge the market.

MARKETING STRATEGY

A marketing strategy is a process that can allow an organization to

concentrate its limited resources on the greatest opportunities to increase

sales and achieve a sustainable competitive advantage. A marketing

strategy should be centered around the key concept that customer

satisfaction is the main goal.

SEGMENTATION

Geographic Segmentation:

Zong has not introduced its services in whole country. Some of the cities of

PUNJAB, SINDH, BALOCHISTAN and N.W.F.P. Network is not supportive in

some cities. Whether they are growing rapidly. They have enclosed its

services in few cities of Pakistan. Rural areas are still not provided by its

services and some urban areas are also unaware of it .but they are looking

forward to fulfill their goal.

Demographic Segmentation:

Zong is targeting young generation from 18 to 30 years of age. Gender

doesn’t effect it because its beneficial for both male and female. It attracts

youngsters, singles and newly married couple because of variety in

packages. Labor is strongly attracted from zong's services and an offer of its

mobile handset in cheap rates. Income doesn’t effect because of its cheap

rates.

Psychographic Segmentation:

Zong attracts upper lowers class, working class and middle class. Upper

classes is not attracted by zongs services because they look for quality and

network and besides zong ,other telecom companies providing them better

then it. But lower upper, working class and middle class are attracted

because of cheap call rates and messaging rates without caring of its

network. They prefer cheap rates

Behavioral Segmentation:

Some user are loyal to their networks. like mobilink user is loyal with its

network without worrying about packages, rate etc. But this kind of nature is

mostly detected in upper class. So at this stage loyalty is not there in zong’s

user they are hardly loyal with zong . Upper class would never be transferred

to zong from any other network until it competes the other one. But right

now the middle class students are their most loyal users.

TARGETING

The target market comprises of all age groups but youth is the main

category to target. so they are producing services according to their target

customers such as low call rates low rate messaging package. Zong pricing

strategy caters the demands of the middle class and lower and it depends on

upper class if they are willing to switch to zong from other network.

Zong basically target students and labor group by its cheap and affordable

rates.They targeting lovers too by offering them a unique package named as

free package due to which a huge num of couple switched to zong to avail

that offer.

POSITIONING

Zong’s position in market is not on the peak of success. There are many

competitors in market like Warid, Telenor etc. But they are trying to aquire

its place in market and to compete with others with offering unique

packages. But their network is not up to the mark from which the users of

other network can be influenced. Zong is facing difficulties in acquiring its

place in the market but assuring their users to provide the best network in

town.

But we can strengthen zong by its packaging strategy of unique offers in

town. First time the labor can afford such kind of service. Still zong wants to

look forward to satisfy their users

CONSUMER BEHAVIOR

The market of telecommunication is growing very rapidly in our country so

the competition is very tough in this market. So behavior of the consumer in

this market is based upon the prices and services that are offering by a

mobile company.

Consumer prefer zong due to the following reasons:

Low Call Rates Sms Packages:

Users prefer zong because of low call rates and messaging rates. Affordable

for every class in Pakistan. With unique packages.

Attractive Promotions:

Zong offers its mobile set for just 2000rs. It’s a unique step taken to help

labor group to fulfill their needs. And also providing different packages.

Exciting Features:

Low price GPRS and MMS service is offered by zong. Other mobile companies

also provide this features but labor and lower class cannot take advantage

from it on other networks. And zongs is trying to fulfilling their needs. Now

they can easily assess these features.

Convenient Availability:

Zong connection can be easily obtained from many retailers and franchises

in town for our ease and comfort at low cost

Whereas most of its users quitted from zong due to following

reasons:

Poor Customer Services:

They aren’t good in dealing with their customers. Customer are not fully

introduced with their services and because of this reason many consumers

don't prefer zong.

Poor Signal Strength:

The main n the major reason of switching from zong to other network is of

their signal strength . zong is not providing their customers with full network.

Fluctuation is always present in their network. A main reason of dislike.

Hidden Charges:

Zong use the term AANAY to grab the customer. Because young generation

is not familier with this kind of terms and they consider it cheap. But they cut

taxes over it from which a customer is unaware. Hidden charges are making

zong’s customers to switching the network.

Lack Of Innovative Offers:

Zong is not providing their customers with any new offer. The same offers

are still there. Young generation wants change and zong is not introducing

any such offer like others do. So it can be a big reason of migration to other

network.

NEW PRODUCT DEVELOPMENT

In product development our major focus is on the quality such as network

low signal strength. Places where signals are available still face fluctuation in

it most of the time. And some are still not provided with its network. So

basically, Signals are not available on its peak. Which is a main reason of

switching of zong’s user to different networks. The main focus is to introduce

boosters that can boost up the signals to overcome this demerit.

Today, the stage where zong is enduring we cannot lower down the prices or

introduce any other low rate packages because by lowering down the prices

we cannot cover our fixed expenses and company will have to face the loss

and we also cannot raise the price to gain more profit. It would be a bad

strategy, so the only way to make our product, a market leader is to improve

its quality by providing good services 24 hours a day.

So the question arises that how we can make it better?

In short, the boosters are the best way to overcome this problem.

PRODUCT LIFECYCLE

Zong lies in a growth stage and growth stage is a period of rapid revenue

growth. Sales increase as more customers become aware of the product and

its benefits and additional market segments are targeted. Once the product

has been proven a success and customers begin asking for it, sales will

increase further as more retailers become interested in carrying it. The

marketing team may expand the distribution at this point. When competitors

enter the market, often during the later part of the growth stage, there may

be price competition and/or increased promotional costs in order to convince

consumers that the firm's product is better than that of the competitor.

So, on this stage zong’s goal is to gain consumer preference and increase

sales. The marketing mix of zong may be modified as follows:

Product: Product quality is maintained and additional features and support

services may be added.

Pricing: Pricing is maintained as the firm enjoys increasing demand with

little competition.

Distribution: Distribution channels are added as demand increases and

customers accept the product.

Promotion: Promotion is aimed at a broader audience.

COMPETITIVE EDGE

For gaining an egde ZONG is presenting video calling first time ever in our

country. With the help of this amazing service you can see the live image of

a person with whom you’ll be talking at quite low rates. This service is

compatible with all the handsets that have front camera like NOKIA N70 etc.

No present mobile company is providing this amazing service in Pakistan.

We are also introducing a package and through this package you can call on

any mobile number in UK at just 1rs\30sec.

MARKETING MIX

Product:

Historically, the thinking was: a good product will sell itself. However there

are no bad products anymore in today's highly competitive markets. Plus

there are many laws giving customers the right to send back products that

he perceives as bad.

The characteristics of your product or service should meet the needs and

wants of the customer. So our core product is sim card and the balance

recharge cards. Core benefits of our product is to make a call and other

levels of products include the services given by the product, services like

sms, internet, mms and easy load etc. other parts of the product doesn’t

affect it in a strong way like quality, safety etc because all the companies are

using same type of material etc in making a sim card. But when it comes to

the services given by that product we need to focus on the quality because

the basically our company is delivering services so the quality level should

be good enough to satisfy the need of a customer and it should be better as

compared to our competitors.

PRICING:

We are using penetration strategy. The price charged for products and

services is set artificially low in order to gain market share. Like zong is using

a term ”anay” which sounds as very low rates but after conversion it

becomes nearby 1 rupee etc.

Zong has two types of packages

Prepaid

Postpaid

PREPAID

12 anay package:

Talk for an entire hour - any hour, for only Rs.4.99 and for the first time

in Pakistan you can change the hour everyday!

50 paisa/call (8 aanay):

(People claim of simplicity and yet give you half the truth. Only ZONG

gives you the full truth at half the price. Now make calls to any other

mobile network for 8 Aanay.)

People claim of simplicity and yet give you half the truth. Only ZONG

gives you the full truth at half the price. Now make calls to any other

mobile network for 8 aanay i.e. 50 paisas per call and you can change

that number any time you want. You will have to pay 40 paisas extra

for the first minute only.

So say it clear, say it loud, say it to anyone, and say it all!

Free package:

For the first time in Pakistan you can make free calls for life!

Zong super free number::

That's right you can literally talk your heart out 24 hours a day

everyday to that special someone - all for FREE!

Breaktime offer:

For the first time in Pakistan, ZONG offers you the benefit of calling

your friends and family freely during daytime

Aik second package:

Make call for just 4 paisas per second!

POSTPAID

Line Rent (Rs) 0 100 500 1000

On-Net Calls (Rs.) 0.6 0.6 0.4 0.3

Off-Net Calls (Rs.) 0.9 0.9 0.8 0.75

Spouse Number (Rs.)0.4 0.25 0.15 Free

Free SMS (On & Off-Net) 0 25 50 100

SMS Rate (Rs.) 1 0.75 0.5 0.5

Free Minutes 0 100 600 1200

Free Minutes Break Up

Free

Minute

s

Billed

Per

Minute

On-Net 0 75 450 900

Off-Net0 25 150 300

Securities:

Local / Nation Wide Rs 1000

International Dialing Rs 1500

International RoamingRs 15000

Billing of Free Minutes will be per minute

Off-Net free minutes will also include landline numbers and will be

inclusive of interconnect cost

All VAS services (Ring-tones, Picture messages, Logos, informational

services) and International SMS will be charged as per standard tariffs

International Roaming Charges in case of outbound roaming will apply

All charges are exclusive of taxes

Place:

Zong is available in major cities of Punjab, sindh,Baluchistan and NWFP as

well as AJK. They have their sales outlets in all major cities of Pakistan. Zong

is also having their customer support centers available in all major cities of

pakistan like

LHR,PESHAWAR,KARACHI.ISLAMABAD,RAWALPINDI,SIALKOT,FAISALABAD,MU

LTAN,QUETTA,HEYDARABAD,JEHLUM,DGKHAN,GUJRANWALA,ABOTABAD.

Promotions:

Zong cares for its value customers and thus brings more colours and

melodies of information, entertainment and fun.it offers a wide range of new

services to serve the customers even better.belowis the information of all

these services:

TAKEONE OFFER

YAARI LOAD

50 PAISA/CALL

INTERNET USB CARD

BREAKTIME OFFER

ISLAMIC SERVICES

ZONG VIDEO ON DEMAND

ZONG DIAL TONES

ZONG MOBILE MUSIC CHANNEL

SMS SONG SEARCH

UNLIMITED SMS

MOBILE INTERNET HOURLY PACKAGE

ZONGOPEDIA

ZONG MOBILE PHONE OFFER.

RESPONSIBILITIES

The starting-off point of the Company’s vision of responsibility is “acting in

good faith”, which bears the two-fold meaning of "sincerity" and

"integrity" in ancient Chinese culture. “Sincerity” is the starting-off point

and driving force behind the continuous efforts of the Company in fulfilling its

responsibilities and “integrity” is the norm and basic standards for the

fulfillment of our responsibilities.

“Economic responsibility”- the Company will pursue harmonious

development for itself and will secure its own sustainable development

through credible and responsible economic activities. To this end, the

Company will demonstrate all its strengths, continue its efforts in innovation

and pursue even greater perfection.

“Social responsibility”- the Company will pursue the harmonious

development of the society and, whilst pursuing its own excellence, the

Company will strive to achieve synergy with the development of the society

with a view to make progression towards the sustainable development of the

human society.

“Environmental responsibility”- the Company will pursue the harmonious

development of the environment. To this end, the Company will endeavor to

protect the natural environment by reducing its consumption of resources

and the impact of its operation on the environment.