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SUCCESS FACTORS OF MOBILINK

Research Paper
Presented to:
Professor Mumtaz .A . Khan

Presented by:
AFAQ HAIDER
FA01-AT-0009

Muhammad Ali Jinnah University


LETTER OF AUTHORIZATION

Dear Reader:

We have assigned by Mr. Rakhman Gul, to study and analyze the success factors
of Mobilink. This report is also required as a “RESEARCH PROJECT” and will
be submitted to Mr. Mumtaz .A..Khan.

We have tried our best to present this very important matter in a very simple way.
To cover all the aspects there are some terminologies, which were necessary to be
included.

We hope you will find this report interesting as well as informative.

Sincerely,

………………………..
(AFAQ HAIDER)
FA01-AT-0009
Muhammad Ali Jinnah University Karachi.

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LETTER OF TRANSMITTAL

Mr. Mumtaz.A.Khan
Muhammad Ali Jinnah University
Karachi.

Dear Sir,

As authorized we submit the accompanying report entiltled as “SUCCESS


FACTORS OF MOBILINK” as “PROJECT REPORT”.
We hope you will appreciate our diligent effort.

Sincerely,

………………………..
(AFAQ HAIDER)
FA01-AT-0009
Muhammad Ali Jinnah University Karachi.

3
LETTER OF ACKNOWLEDGEMENT

Dear Reader:

We offer our humble gratitude to Almighty Allah who gave us courage to


complete this report in a satisfactory manner. We are also grateful to Mr. Mumtaz
Khan, for providing me an opportunity to write on the topic of utmost importance.

We are also thankful to all our friends and associates for providing us the
necessary information.

Sincercely,

………………………..
(AFAQ HAIDER)
FA01-AT-0009

Muhammad Ali Jinnah University Karachi.

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TABLE OF CONTENTS

Chapter 1: The Problem and its Background

- Introduction
- Theoretical/Conceptual Framework
- Statement of the Problem
- Hypothesis
- Defintion of Terms

Chapter 2: Review of Related Literature

- Local Literature
- Foreign Literature
- Relevance to the Present Study

Chapter 3: Research Methodology

- Research Methods
- Research Instruments and Techniques
- Methods in Data Collection
- Population and Sampling Techniques
- Statistical Treatment of Data

Chapter 4: Presentation, Analysis and Interpretation of Data


Chapter 5: Sales and Distribution Strategy, Relation Between Brand and Sales
Strategy, Distribution Strategy and Distribution Network.
Chapter 6: Swot Analysis & Value Added Services
Chapter 7: Success Factors Of Mobilink
Chapter 8: Findings, Conclusion and Recommendations

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Chapter 1:

The Problem and Its Background

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Company Introduction

Mobil ink GSM (An Orascom Telecom Company)

PMCL (Mobil ink GSM) is the market leader in providing state-of-the-art

communications solutions to more than 350,000 people in Pakistan. We can proudly boast

of being the first cellular service provider in Pakistan to operate on a 100% digital GSM

technology.

We offer tariff plans that are exclusively designed to cater to the communication needs of

a diverse group of people, taking into account occasional users to businessmen. To

achieve this objective, we offer both post paid (Mobil ink Star) and the prepaid (JAZZ)

solutions to our customers.

In addition to providing advanced voice communication services, we also offer cost

efficient data services to our customers. Keeping in mind our customers’ convenience, we

also deal in mobile handsets, sold either independently or bundled in All-in-One Packs.

Mobil ink GSM has the most efficient distribution channels that facilitate the sales of our

products and services in more than 30 cities and towns across the country. These include:

• An in-house Sales Team

• Mobil ink GSM Centers (Pakistan’s first franchised network in telecom.)

• Connect Point-Of-Sales Express Shops (POS)

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What makes Mobil ink GSM the preferred choice of its customers is that we provide

state-of-the-art value added Services that no other cellular operator offers. A few of these

include Short Message Service (SMS), Mobil ink GSM-The News Info services, Mobil

ink GSM G-Mail, Mobil ink GSM G-Mail, Mobil ink GSM Fax & Data Services,

International Roaming, Secure Communication and Innovative tariff structures.

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Theoretical Framework

CUSTOMER SATISFACTION / DISSATISFACTION:1

Satisfaction is an important element in the evaluation stage. Satisfaction refers to the

buyer’s state of being adequately rewarded in a buying situation for the sacrifice he has

made. Adequacy of satisfaction is a result of matching actual past purchase and

consumption experience with the expected reward from the brand in terms of its

anticipated potential to satisfy the customer’s motives.

The concept of satisfaction is one about which there are presently few agreed upon

definitions or approaches to measurement. Consumers from certain expectations prior to

the purchase. These expectations may be about (1) the nature and performance of the

product or services (2) the costs and efforts to be expended before obtaining the direct

product or service benefits, and (3) the social benefits or costs accruing to the consumer

as a result of the purchase. Advertising may often be an important factor influencing these

expectations. Consumers may hopes performance will be in terms of an ideal level, what

would be fair and equitable given the consumer’s expenditure of time and money in

obtaining and using the product, and what the consumer expects to actually occur.

Once consumers purchase and use a product, they may then become either satisfied or

dissatisfied. Research has uncovered several determinants which appear to influence

satisfaction, including demographics variables, personality variables, expectations, and

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other factors. For example, older consumers tend to have lower expectations and to be

more satisfied. Higher education tends to be associated with lower satisfaction. Men tend

to be more satisfied than women. The more confidence one has in purchase decision-

making and the more competence in a given product area, the greater one’s satisfaction

tends to be. There is also greater satisfaction are also indicated by persons who are more

satisfied with their lives as a whole, and by persons with more favorable attitudes toward

the consumer domain, that is, the marketplace, business firms, and consumerism.

The interaction between expectations and actual product performance produces either

satisfaction or dissatisfaction. However, there does not appear to be merely a direct

relationship between the level of expectations and the level of satisfaction. Instead, a

modifying variable known as “disconfirmation of expectations” is thought to be a

significant mediator of this situation. When a consumer does not get what is expected the

situation is one of the disconfirmation. Such disconfirmation can be of 2 varieties: a

positive disconfirmation occurs when what is received is better than expected, and a

negative disconfirmation occurs when things turn out worse than anticipated. Thus, any

situation in which the consumer’s judgment is proven wrong is a disconfirmation.

Confirmation if the expectations of performance are met. Consumers’ expectation from a

product, as well as whether those expectations are met, is strong determinants, then, of

satisfaction. Although the cognitive dimension of post purchase evaluation has been

stressed here, it is important to recognize that consumers’ emotional experiences in

connection with product ownership and usage are also important. These positive affective

responses need to be stimulated by marketers in the post purchase period in order to

enhance consumers’ satisfaction and possibly favorable word of mouth communication.

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The emotional context in which product failure occurs may affect consumers’ subsequent

information processing. Research on the satisfaction/ dissatisfaction process has led to the

proposition that disconfirmation is mediated by attribution processing in which

consumers seek to understand why products fail. Consumers seek to know 3 features

about the causes of a problem: (1) stability (2) Locus and (3) controllability. Research on

attributions also indicates that attributions can lead to specific types of emotional

reaction. It also appears that the consumer’s mood prior to product failure can influence

later cognitive and affective reactions. The result of satisfaction to the consumer from the

purchase of the product or service is that more favorable post purchase attitudes, higher

purchase intentions, and brand loyalty are likely to be exhibited. This is, as long as

positive reinforcement takes place, the consumer will tend to continue to purchase the

same brand. It is true, however, that consumers will sometimes not follow these

established patterns but will purchase differently simply for the sake of novelty. On the

other hand, if consumers are dissatisfied, they are likely to exhibit less-favorable post

purchase attitudes, lower or non-existent purchase intentions, brand switching,

complaining behavior, and negative word of mouth.

Why Track Customer Satisfaction?

• Growing Competition – Obtaining new customers is expensive. With

companies looking to capitalize on others mistakes, ensuring that a

relationship is strong is core to any CRM program.

• Customer Satisfaction Studies Become Self-Fulfilling – Once people in an

organization learn performance is being measured; employees often raise

their performance level.

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• Customization and Normative Comparisons – Aside from a small set of

core questions, there is no standard set of questions providers must adapt to.

The questions we ask are customized to your needs. Over time,

Management may want to shift emphasis from one area to another, or deal

with an unexpected issue. The core questions allow you to compare your

scores with other organizations if you choose to do so. Currently, NMM has

over 96,000 satisfaction interviews in its normative databases.

Statement of Problem

Management Problem

What are the factors customers consider in buying a mobile phone service?

Research Problem

What are the Factors determinants in using mobile phone services as perceived by

customers?

Sub Problems

1. Are customers satisfied with current cellular services available to them?

2. What motivates young generation to buy mobile phone service?

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3. Do you think current prices correspond to the value of the services offered?

4. Is SMS, a high involvement factor in purchase of service?

5. Why there is a need of mobile phone service for young people?

Hypothesis
Ho: Customers are not satisfied with mobile phone services available to them.

HA: Customers are satisfied with mobile phone services available to them.

Definition of Terms

SMS: Short Messaging Service.

GSM: Global System of Mobile Communications

WAP: Wireless Application Protocol

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Chapter 2:

Review of Related Literature

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Local Literature
Article # 1

1. THE MANY FACES OF CUSTOMER VALUE2


By: Gordon A. Wryer

2
Marketing Review, Issue April-June 1998

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Customer value can refer to value to or from the customer, value that emerges from the
product itself or non-product related images or experiences, and value that has been
realized in the past or is likely to be realized in the future. Customers are important for
suppliers because they generate revenue for them. Customers generally want to maximize
the benefits they receive from the supplier by searching for the product that best meet
their needs, subject to budget constraints and relative to the competitive alternatives. Total
Pakistani market size is smaller than UK and stood at 200,000 subscribers. But the
expected rate of growth in the next four to five years is high, resulting in a year 2002
estimate of about 1.5 million subscribers. Paktel was the first cellular company launched
in 1990. GSM is undoubtedly the most advanced, and indeed the most popular. It has
clearly beyond the expectations of its European founders, who in 1983 embarked on a
mission to create a pan-European standard for mobile telephony. Today GSM has become
the system of choice amongst mobile phones users across the continents. A major
distinction between Analog and GSM digital telephony is the very secure communication
he latter offers. Analog can easily be tapped through FM scanners. Value added services
(VAS) that a digital GSM service provider can offer include the use of a single access
code, CLI, call waiting, call forwarding, call barring, answering service etc.

Article # 2

2. BUILDING CUSTOMER FOCUS3

By: Kamran Rizvi and Fahad Karamally

3
Marketing Review, Issue April-June 1998

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Building Customer focus requires organizations to become lean, agile, and flexible and
responsiveness. A wonderful idea that frequently meets with failure because resistance to
change is underestimated. Focusing energies of all employees is vital if the customer is
truly to be delighted through each interface/interaction with the organization. Be it
‘customer satisfaction,’ ‘customer delight’ or ‘customer ecstasy’- the reality is that it is
the customer ho makes our business tick. Customers always have a choice. If we do not
live up to customer expectations, we end up serving someone who does. Often times, this
stark fact is ignored and non-productive conflicts arise within organizations. This leads to
blaming, accusing. Working environment suffers and barriers to communication are
heightened. Remaining focused on customers is the key to survival, growth and
prosperity. It means knowing who your customers are. It also requires that organizations
remain eternally vigilant and monitor continuous changing customers preferences and
circumstances. To do this leadership has to create a responsive and flexible organization,
able to adapt, efficiently and effectively, to remain aligned with the dynamic market
realties. The annals of modern marketing demonstrate that in a competitive environment
companies that have pursued a market-led approach to running the business have fared
better than those who have not. The important point to remember is that being a
customer-oriented firm does not simply involve a pious statement being issued from
above on a solitary occasion. Building Customer Focus requires a well developed and
deeply rooted corporate philosophy that guides every part of the organization in all its
activities and operations. When talking about their products and services, customer-
oriented firms think in terms of what the customers buys rather than what the company
manufacturers. When customers buy light bulbs they buy lighting’ and not incandescent
lamps. When car manufacturers buy ball bearings that buy them because they have a
friction problem to overcome and not because they love the shape of the spherical objects.
Companies that adhere to the marketing concept attempt to identify and solve customers’
problems rather than to supply discrete products. This means that they are always ahead
of the game. They anticipate events and needs, and seek to provide solutions.

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Foreign literature
Article # 1
1. Bell Atlantic Mobile Ranked Top in Customer Satisfaction in Four
Major Markets; J.D. Power and Associates Study Cites Call Quality as
Top Factor.

Issue: Sept 24, 1998

BEDMINSTER, N.J., Sept. 24 /PRNewswire/ -- Bell Atlantic Mobile is the leader in


overall customer satisfaction among wireless users in New York, Boston,
Washington/Baltimore and Pittsburgh, according to the prestigious J.D. Power and
Associates 1998 U.S. Wireless Customer Satisfaction Study(SM) released this week.

Bell Atlantic Mobile received top ranking in four of the five of its markets included in the
study. In the fifth market, Charlotte, the company was ranked second and its sixth major
market, Philadelphia, was not included in the study.

Call quality was rated the most important factor in determining satisfaction by the study
respondents. Other factors, in order of importance, were pricing options, corporate
capability, customer service, credibility/communications, and roaming/coverage.

"Our guiding philosophy is that cellular service is only as good as the network it's on,"
said Jack Plating, chief operating officer of Bell Atlantic Mobile. "We've built a network
that's premier in both coverage and technology -- which is what drives call quality when
the customer picks up their phone and the call goes through, the call is clear, and the call
stays connected until the customer ends it. Complementing our premier network, we
continually emphasize superb customer service and competitive pricing, including our
new Digital Choice Single Rate (SM) plans -- all with the end game being customer
satisfaction.

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"With increasing competition in each market, we believe it's a significant trend that our
customers ranked Bell Atlantic Mobile the customer satisfaction leader in nearly all our
markets."

Bell Atlantic Mobile owns and operates the largest wireless network in the East, covering
116,000 square miles, and the largest chain of retail outlets devoted exclusively to
wireless voice, data and paging. Based in Bedminster, NJ, Bell Atlantic Mobile has 5.7
million customers and 7,000 employees from Maine to Georgia and, through a separate
subsidiary, in the Southwest. Through its "Wireless at Work" community service
program, the company uses its technology to help individuals and communities improve
security and emergency communications. Bell Atlantic Mobile's parent is one of the
world's largest wireless communications companies, with domestic operations in 25 states
and international investments in Mexico, Europe and the Pacific Rim. For more
information on Bell Atlantic Mobile or its Online store visit: http://www.bam.com; on
global operations visit: http://www.bellatlantic.com/worldwide.

J.D. Power and Associates, headquartered in Agoura Hills, Calif. is a global marketing
information services firm operating in key business sectors including market research,
forecasting and customer satisfaction. The firm's quality and satisfaction measurements
are based on actual customer responses from more than one million consumers annually.
J.D. Power and Associates can be accessed through the World Wide Web at
http://www.jdpower.com. The 1998 J.D. Power and Associates 1998 Residential wireless
Customer Satisfaction Study is based on the results of a syndicated study independently
funded by J.D. Power and Associates, which acts as an unbiased third party analyzing
consumer opinions.

Article # 2

2. Mobil Rom Selects Inet For Wireless Surveillance Services; GeoProbe


Mobile, GPRS, and IT: Seven Customer Care Solutions Ordered.

Issue: Oct 12, 2000

Business Editors & High Tech Writers

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RICHARDSON, Texas--(BUSINESS WIRE)--Oct. 12, 2000

Inet Technologies, Inc. (Nasdaq:INTI), a leading global provider of communications


software solutions for next-generation networks, today announced that it will supply
Mobil Rom, Romania's first GSM carrier with over 1 million subscribers, with GeoProbe
Mobile(TM), General Packet Radio Service (GPRS) support, IT:seven(TM)
GeoCare(TM) customer care applications, and Short Message Service (SMS) Welcome
application.

Inet's GeoProbe Mobile will monitor Mobil Rom's GPRS interface and provide valuable
GPRS performance analysis capabilities. The IT:seven GeoCare application will help
Mobil Rom manage interconnection activity and service quality levels for its customers.
In addition, Inet will provide an SMS "welcome service" application allowing Mobile
Rom to increase GSM services offered to its international roamers.

Inet's GeoProbe Mobile system gives carriers like Mobil Rom a comprehensive, end-to-
end view of their wireless networks in the same way that GeoProbe(TM) provides end-to-
end monitoring of networks for wireline carriers.

"We selected GeoProbe Mobile because of its capabilities in facilitating customer


satisfaction as we continue with our focus on customer acquisition and retention. It will
also be relied upon for verifying interconnection activity and quality of service," said
Daniel Lavina, technical director of Mobil Rom. "In addition, we can generate revenue
with the location-based feature, and we can now offer roamers our attractive services
through the SMS Welcome feature."

"One important objective of our network intelligence solutions is to maximize revenue for
carriers," said Elie Akilian, Inet's president and chief executive officer.

"We understand that service providers with the most reliable networks, highest levels of
customer service, most advanced services, and most efficient cost structures will succeed
in today's highly competitive global mobile marketplace. Inet's GeoProbe Mobile can
assist operators achieve optimum performance."

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About GeoProbe Mobile

Inet's GeoProbe Mobile system gives carriers a comprehensive, end-to-end view of their
wireless networks. Whether employing GSM, IS-41, or GPRS protocols to direct traffic,
Inet's non-intrusive "eye" provides complete network visibility reducing operational costs
and revenue loss resulting from churn, enhancing roaming profitability, enabling revenue-
generating services and minimizing time-to-market of new services. In addition, it
provides informed network planning for GPRS/Enhanced Data Rates for GSM Evolution
(EDGE), a platform to offer variable rate packet switched data services for GSM carriers,
and Universal Mobile Telecommunications Services (UMTS) services, the European
implementation of the 3G wireless phone system.

About IT:seven GeoCare

Inet's GeoCare is one application in the IT:seven suite of business intelligence


applications. GeoCare is an efficient, easy-to-use tool that enables carriers to maximize
their profitability by gathering and generating high-value network reports for internal use
or to sell to customers as value-added information. GeoCare allows carriers to track their
high-volume customers, including Internet and dialed information service providers, as
well as virtual private network users.

About Mobil Rom

Over 92% of the Romanian populations are in the coverage area of Mobil Rom's
DIALOG GSM services. Since 1997, the GSM services offered by Mobil Rom have been
available to eight of the largest cities within Romania. Its Dialog GSM network covers
258 cities and 55 stations and tourist sites, making Mobil Rom the largest mobile
telephone operator in Romania. For more information on Mobil Rom, please visit their
company Web site at www.dialog.ro.

About Inet Technologies, Inc.

Founded in 1989, Inet provides solutions that enable telecommunications carriers to more
effectively design, deploy, visualize and manage communications networks that carry
signaling information used to manage telephone calls. Inet's products also address the
fundamental business needs of telecommunications carriers, such as improved billing,

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targeted sales and marketing, fraud prevention and enhanced call routing. Inet is
headquartered in Richardson, Texas and has more than 500 employees worldwide. Inet is
an ISO 9001 registered company. For more information, visit Inet on the Web at
www.inet.com.

Inet Technologies, GeoProbe, GeoProbe Mobile, IT:seven, and GeoCare are trademarks
of Inet Technologies, Inc.

This release may contain forward-looking statements that involve risks and uncertainties.
Among the important factors which could cause actual results to differ materially from
those in the forward-looking statements are significant fluctuations in Inet's operating
results, any slowdown in the growth of the telecommunications industry, any reversal or
slowdown in the pace of privatization and deregulation of telecommunications markets
worldwide, deferred or lost sales resulting from Inet's lengthy sales cycle, any downturn
in the demand for Inet's products and solutions, increased competitive pressures, Inet's
capability to manage rapid and significant growth, the loss of key personnel, rapid
technological change within the telecommunications industry, special risks associated
with international operations and other factors detailed in Inet's filings with the Securities
and Exchange Commission, including the Company's Annual Report on Form 10-K for
the year ended December 31, 1999 and Quarterly Report on Form 10-Q for the quarter
ended June 30, 2000.

Article # 3

3. Mobile phone usage has become cheaper in Britain, says study.


(Industry Trend or Event)

Issue: Nov 7, 2000

TELECOMWORLDWIRE-7 November 2000-Mobile phone usage has become cheaper


in Britain, says study (C)1994-2000 M2 COMMUNICATIONS LTD http://www.m2.com

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New research by Britain's telecomms regulator Often shows that the cost of using a
mobile phone in the UK has fallen by a third for pre-pay customers and 16% overall
during the twelve months ending in August.

The study, which questioned over 2,000 UK residents, found that 54% of the country's
adults now own a mobile phone. And 93% of the surveyed mobile phone users said they
are satisfied with their service while a fifth had switched companies to obtain a better
deal.

Commenting on the findings Often notes that the cost of using a mobile phone continues
to go down because operators offer increasingly competitive packages. But the operators
should try to provide easy to understand information to help consumers choose the deal
best suitable for them, the regulator advises.

Article # 4

4. E-commerce is going mobile. (BT's wireless application protocol


mobile phone service)(Company Business and Marketing)

Issue: Jan 27, 2000

Don't be a casualty in the wireless revolution Whap is here - well, nearly. BT launched its
wireless application protocol mobile phone service this week, bringing Whap technology
to the masses.

In theory this turns all existing mobile phones into legacy ware. But the services that will
make the new gadgetry worth having are thin on the ground.

The impact of Whap is potentially enormous - not just for e-commerce but for the
architecture of enterprise computing and for the user-supplier relationship.

The technology exists now to deal stocks, book theatre tickets, and place bets and manage
your finances from the touch-screen of a Whap phone with a built-in PDA. Unlike
desktop Internet use, this new form of buying goods and accessing information will not

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have to rely on employees' furtive use of workplace bandwidth. No one will have to say,
"get out more" to mobile e-commerce junkies.

But the new technology creates new problems. Number one is security. There is always
some aspect of security that relies on the client hardware and the end-user: mobile phone
security is untried outside the labs of the telecomms giants. Added to that, law to
recognize digital signatures in the UK has still not been passed, let alone tested in the
courts. There is still no standard public key infrastructure for encryption over the Net -
and wireless PKI presents an added technical challenge.

These obstacles can and must be conquered, because the potential benefits are
considerable.

Both as consumers and employees, the salaried has embraced the idea of the desktop PC.
The Internet did more than anything else to achieve that, and it could repeat the success
for a radically slimmed down mobile client that is part phone, part PDA, and part Web
browser.

If that happens, the client-server systems we rely on today could look more than dated.
When the PC and the local network appeared in businesses, the old data Centre managers
were wrong-footed. We are only just recovering from the chaos reaped by decentralized
IT strategy that infiltrated on the back of the desktop PC.

The same thing could happen with mobile e-business. Large companies should be looking
now at their whole mobile telecomms and computing strategy. There are four network
providers, about the same number of serious hardware manufacturers, and just three
operating systems. They are currently engaged in forming the alliances that will shape the
user-supplier relationship when mobile e-commerce overtakes the wire line version.

Users need to get their act together, faced with such a potentially limited choice of
suppliers and technologies. You need a mobile strategy, not a mobile policy. And you
need an urgent dialogue with the non-IT managers in your organization about the
implications of the emerging mobile market.

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Article # 5

6. Are U.K. Mobile Phone Firms Pocketing Abnormal Profits?


(Brief Article)

Article # 6

6. Schlumberger Simera Designer Studio Software Tool Slashes Mobile


Phone Operators' Time-to-Market for Value-Added Services.

Issue: Feb 28, 2000

Business Editors

Wireless 2000

NEW ORLEANS--(BUSINESS WIRE)--Feb. 28, 2000

Enables Value-Added Service Developers to Design Applications,

Generate and Validate Java(TM) Code, and Test Programs on Live SIM

Cards in Just a Few Short Hours

Schlumberger (NYSE:SLB), the world's leading provider of smart card-based solutions,


announced Sierra (TM) Designer Studio, a new Windows(TM)-based graphical software
tool that dramatically reduces time-to-market for new value-added services running on
the world's leading family of Java-based SIM (Subscriber Identity Module) smart cards.
The new software tools allow value-added service developers to design SIM Toolkit
applications, generate and validate the Java code automatically, and test the program on a
live SIM card in a matter of hours. All the information required to take the prototype
forward to volume production is then generated automatically to save significant time.

"Innovative and creative value-added services are the key differentiator for mobile
operators today, and a few days can make the difference between being a market leader
and a me-too service provider," said Minh Le, field marketing director, Mobile

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Communications Solutions, Schlumberger Smart Cards & Terminals, North America.
"By putting the SIM Toolkit power in the hands of the service developers, and letting
them test their concepts on live Java SIM cards, we're helping operators speed
deployment of critical new services to their subscribers."

Using Sierra Designer Studio, service developers can create new applications, which
leverage all the features of the state-of-the-art Schlumberger Sierra Java SIM family,
without the need for Java programming skills. It automates the entire process - from
defining the SIM Toolkit script to preparing the relevant specification documentation
required to take the prototype forward to production. It also eliminates the need to brief
and re-brief programmers as changes are needed, cutting precious time out of the
development cycle.

The easy-to-use Sierra Designer Studio software uses Windows software with familiar
graphical icons to access all the powerful Sierra features. This enables value-added
services developers to simply drag and drop required functions to create the applet script
and set up the screen menus. Sierra Designer Studio provides access to the full
Schlumberger SIM Toolkit, plus a range of conditional test features to validate the
integrity of the applet. It also has capabilities for reading and writing data files.

All the Java code required to build the applet is generated automatically, and concurrent
background validation ensures the logical consistency of the program.

When the service developer is satisfied with the script created on the screen, it is loaded
onto a live Sierra SIM card for testing in a standard Phase 2+ handset. If any changes are
needed, the script is simply modified and the new version loaded onto the SIM. Once the
final version is ready, a single keystroke generates the complete specification package
and documentation required to take the prototype to production.

About Schlumberger

Schlumberger is the leading provider of smart card-based solutions worldwide. Drawing


on 20 years experience in pioneering smart card innovations, Schlumberger is continuing
to evolve the new generation of smart cards, parking terminals, ticketing machines,
payphones, banking terminals, servers, software, applications and systems integration that

26
will play a key role in the 21st century's digital age. Additional information is available at
http://www.slb.com/smartcards.

Schlumberger Test & Transactions provides smart card-based solutions; semiconductor


equipment and services; and corporate IP and network solutions to customers throughout
the world. It is a business unit of Schlumberger Limited, an $8.4 billion global technology
services company.

NOTE TO EDITORS: Cyber flex and Sierra are trademarks of Schlumberger. Java is a
trademark of Sun Microsystems, and Windows is a trademark of Microsoft.

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Chapter 3:

Research Methodology

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Research Methods
The research is a descriptive research. In this regard, primary data has been collected

from the respondents. Descriptive research often involves determining the degree to

which marketing variables are associated, as is the case with this study. A clear statement

of the research problem and specific research objectives marks effective descriptive

research.

Research Instruments Technique


The research instrument to be used is questionnaire, one that will be self- administered

and structured. Besides that face-to-face interviews were also conducted to get first hand

information. This research is conducted for MOBILINK to test the customer satisfaction

from GSM networks available in Pakistan.

Methods in Data Collection


 Primary data collection method will be used for this purpose by conducting surveys

 Data will be collected through systematic collection of information directly from the

respondents through a structured questionnaire

 The questions are going to be self-administered asked by the interviewer.

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Population and Sampling Techniques

THE SAMPLING PROCESS

 The Population

Element: All people with mobile phone connections

Sampling Unit: College going students

Extent: MOBILINK and U-FONE customers

Time: During the last year (2001 – 2002)

The total population for this research was 750,000, that is, the number of mobile

phone connections purchased in Karachi.

 The Sampling Frame & Sampling Unit

The sampling frame is the means of representing the elements of the population. The

sampling frame for this research is personal contacts and referrals of people who own

GSM mobile phone connections.

 Sample Size

Till 2001 December there was 750,000 MOBILINK customers. The statistically

appropriate sample size can be calculated as follows with a margin of error of 5%:

Population = 750,000 (Mobilink users)


Margin of Error = 5%
n = N / (1 + Ne2)
n = 750,000 / (1 + 750,000*.052)
n = 399.7
But as per constraints of time and other factors my sample size is 30.

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Chapter 4:

Presentation, Analysis &


Interpretation of Data

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Survey Questionnaire
• Do you use a mobile phone service?
YES_____ No_____

• Why you use mobile phone service?


Business_______ Personal_______

• Which service you would prefer to use for your mobile set?
Analog _______ GSM_______

• Which one gives you best reception?


GSM______ Analog________

• Which company’s cellular network you would use for your mobile set?
Ufone________ Mobilink _______
Paktel________ Instaphone _______

• What motivates you to buy cellular service?


Convenience _______ Price _______
SMS _______ Other_______

• How much satisfied you are with the mobile phone services available?
____________________________________________
Satisfaction Dissatisfaction

• What value added services should be added to GSM or Analog network in your
city?
Mobile Banking_____ Web services_______
Easy Billing _____ Others _________

• Why there is a need for mobile phone service for younger generation?
Necessity _______ Status symbol _______
Others _________

32
• You pay your bills through:
Pocket money _______ Parents _______
Extra allowance ______ others ________

• Is there a need for special packages for students?


Yes ____ No ______

• What additional services should be added to Students Packages?


Free SMS _____ Email Services _______
Low Price _____ Others _________

• Is SMS, a high involvement factor?


100%__________________________________________________ 0%
High Involvement Low Involvement

• IF yes, then for what purpose you use SMS service?


Friends/Socializing ______ Sending News /Jokes ___________
Chatting _______ Others ____________

• Which package currently available you think is suitable for students?


Name of the package ________________

• What is the most dissatisfying factor of your mobile phone service?


Network Busy __________ Price __________
Charges on SMS ________ weak reception _________

• What other types of Web services should be added to your service?


Notification for Sports scores ___________
Notification for News ________________
Others ____________________________

• Are you using Pre paid service?


YES ___________ No ____________

• Do you think Pre paid services are designed for low-income group and
students?
YES _________ No _______________

• Do you think Six month validity of pre paid cards is:


Increasing sales ___________
Decreasing Sales ___________
No effect _____________

33
• Which company is best satisfying your mobile phone service needs?
PAKTEL _________ MOBILINK _________
Ufone ___________ INSTAPHONE ________

• Do you prefer GSM network over Analog?


YES _______ NO __________

• Don’ t you think Digital network gives you best reception and value added
services than Analog service?
YES _________ No (give reasons) _______________

• GSM network gives you following value added services: (Tick all that apply)
___ Good Reception
___ Entertainment
___ Digital Web Services
___ Price
___ Convenience
___ Others

• Is there any future of Analog network and can it give good competition to GSM
technology?
YES ________ NO __________

• Why mostly students prefer GSM network over Analog network?


(Tick all that apply)
___ Price
___ Convenience
___ SMS Options
___ Free Web Services
___ Peer Pressure

PERSONAL INFORMATION

Name:
Age:
Occupation:
Income/Pocket Money:

34
ANALYSIS OF QUESTIONNAIRE
1. Do you use a mobile phone service?
100% use mobile phone service

2. Why you use mobile phone service?


93% of College going students have it for personal use and 7% for
business.

Purpose of Mobile Phone Usage

7%0%

93%

3. Which service you would prefer to use for your mobile set?

4. Which one gives you best reception?


93% prefer GSM to Analog service

5. Which company’s cellular network you would use for your mobile set?
About 76% use cellular service of MOBILINK, 7% Ufone, 17%
Instaphone and 0% Paktel service.

Cellular Company Service Usage

25
Mobilink
20
Instaphone
15
Paktel
10
Ufone
5
0

35
First 5 questions were used to gather general information about respondents. This
includes their purpose of usage of mobile phone service, name of service Provider
Company and whether they use GSM service or Analog service.

7. What motivates you to buy cellular service?


The purpose of this question was to test the main motive behind buying the
mobile phone service by college going students. This was multiple response
question and results showed that convenience was the main factor for buying a
mobile phone service.

Factors motivate to buy Mobile Phone


Service

60%
50%
convenience
40%
Price
30%
S MS
20%
Other
10%
0%

8. How much satisfied you are with the mobile phone services available?
Satisfaction was tested on interval scale and 73% of the respondents are
satisfied with the mobile service.. Hence, we REJECT our NULL HYPOTHESIS
and accept ALTERNATIVE HYPOTHESIS. i.e. Customers are satisfied with their
mobile service. I can support my hypothesis through following TESTING method.

36
Class Interval Frequency Relative Frequency
0-5 8 27%
6-10 22 73%
Total 30 100%

TESTING OF HYPOTHESIS:

Ho: Customers are not satisfied with mobile phone services available to them.

HA: Customers are satisfied with mobile phone services available to them.

CALCULATION OF MEAN:

= 2.5*8 + 8*22

30

= 196/30

MEAN = X = 6.53

Assume U = 2.5

Standard Deviation = 2.885

Z = 6.53 – 2.5 30

2.885

Z = -2.48

Alpha = 0.05

Acceptance region is between –1.96 and +1.96 because of alpha being 0.05 and it is a

2-tail test.

RESULT:

As Z-score is –2.48 and lies in rejection region so we would reject NULL

HYPOTHESIS and accept our ALTERNATIVE HYPOTHESIS.

9. What value added services should be added to GSM or Analog network in


your city?

37
Purpose of this multiple response question was to find out that what Value
Added Services (VAS) should be added to cellular service. 60% of the college
going users said that there should be more web services (WAP) in GSM service.
Results are as follows:

VAS Frequency Relative Frequency


Mobile Banking 7 23%
Easy Electronic Billing 5 17%
Web Services (WAP) 18 60%

10. Why there is a need for mobile phone service for younger generation?
Purpose of this question is to check that what need is satisfied with mobile
phone and cellular service. 83% said that it is a necessity in Karachi because of
safety reasons. Results are as follows:
Reason/Need Frequency Relative Frequency

Necessity 25 83%

Status 3 10%

Others 2 7%
TOTAL 30 100%

11. You pay your bills through:


Purpose of this question is to find out how students pay their cell phone
bills. This will help MOBILINK in identifying that whether any of their packages
is affordable for students through their allowances or parents pay their bills. 64%
said that their Parents pay their bills. Results are as follows:
Mode of Payment Frequency Relative Frequency
Pocket money 7 23%
Parents 19 64%
Extra allowance 3 10%
Others 1 3%
Total 30 100%

12. Is there a need for special packages for students?

38
Purpose of this question is to identify whether there is a need for special package
for students or not. 90% said YES that there should be package specially
designing for student so that they can afford it.
Frequency Relative Frequency
YES 27 90%
NO 3 10%

13. What additional services should be added to Students Packages?

Purpose of this question is to identify that what other service should be added to
students’ package. Results showed that there should be free SMS service and
package should be low priced.
Services Frequency Relative Frequency
Free SMS 13 43%
Email 4 13%
Low Price 12 40%
Other 1 3%
Total 30 100%

14. Is SMS, a high involvement factor?

Purpose of this question is to check the level of involvement with SMS


service in mobile phone services. 83% students consider SMS to be a high
involvement factor. Level of Involvement was measured on interval scale divided
into 4 segments in which 100%-75% slot was selected by 83% of the respondents.
Results are as follows:
Class Boundaries Frequency Relative Frequency
100% - 75% 25 83%
75% - 50% 2 7%
50% – 25% 2 7%
25% - 0% 1 3%
Total 30 100%

15. If yes, then for what purpose you use SMS service?

This question tested purpose of SMS usage among students and 67% respondents
use it to communicate with their friends. Results are as follows:
Purpose Frequency Relative Frequency
Friends 20 67%

39
Sending News/Jokes 8 27%
Chatting 9 30%
Others 3 10%
Total 30 100%

16. Which package currently available you think is suitable for students?

Purpose of this question was to find out which package is more used by
students. About 70% of the respondents use JAZZ (MOBILINK), 7% use
INSTAONE (INSTAPHONE), and 23% did not respond to the question.

17. What is the most dissatisfying factor of your mobile phone service?

Purpose of this question is to identify the factor that dissatisfies the


customer. Research shows that charges on SMS are the main dissatisfying factor
on cellular services. Around 57% respondents are dissatisfied with cellular
services because of charges on SMS.

Reason Frequency Relative Frequency


Network Busy 5 17%
Price 5 17%
SMS Charges 17 57%
Reception 12 40%
Total 30 100%

18. What other types of Web services should be added to your service?
Purpose of this question is to find out that what more web services should
be added to cellular service. Around 53% said that there should be more free
news notifications in cellular service.
Notifications Frequency Relative Frequency
Sports 12 40%
News 16 53%
Others 2 7%
Total 30 100%

19. Are you using Pre paid service?

Around 73% of the respondents use prepaid mobile phone service.

20. Do you think Pre paid services are designed for low-income group and
students?

40
77% of the respondents agree that pre paid service packages are designed
for low-income groups and students.

21. Do you think Six month validity of pre paid cards is:

Purpose of this question is to find out that whether people have increased their
purchase of Pre paid cards or not. And how it affects the sales of the company.
63% of the respondents said that it has increased the purchase of pre paid cards
and pre paid packages of cellular service. Results are as follows:
Effect on Sales Frequency Relative Frequency
Increasing 19 63%
Decreasing 6 20%
NO effect 5 17%

22. Which company is best satisfying your mobile phone service needs?

Purpose of this question is to identify which company is a best satisfying


customer need in Pakistan. And research shows that MOBILINK is ranked # 1
that satisfies customers’ need more than any other company. Results are as
follows:

Company Name Frequency Relative Frequency


Mobilink 21 70%
Paktel 0 0%
Ufone 4 13%
Instaphone 5 17%
Total 30 100%

23. Do you prefer GSM network to Analog?

Purpose of this question is to ask that whether people preferGSM service over
Analog or not. Research shows that 88% people prefer GSM service because of
number of factors.

41
24. Don’ t you think Digital network gives you best reception and value added
services than Analog service?

Purpose of this question is to inquire that whether GSM service gives its
customers better reception and Value added services or not. 80% said YES and
20% said NO.
25. GSM network gives you following value added services?

Purpose of this multi response question is that which of the following features are
popular among users. 77% like convenience, 63% like good reception and 60%
like its Entertainment services. Summary of results are as follows:

Features Frequency Relative Frequency

Good Reception 19 63%


Entertainment 18 60%
WAP 7 23%
Price 10 33%
Convineance 23 77%
Others 2 7%

26. Is there any future of Analog network and can it give good competition to
GSM technology?

63% Respondents said NO and 37% said YES to this question.

27. Why mostly students prefer GSM network over Analog network?

Purpose of this multiple response question is to ask users that why they prefer
GSM service so that company can maintain and enhance that feature of their
service. 80% like SMS service, 40% like convenience, 37% like price etc.
Reason Frequency in Percentages
Price 37%
Convenience 40%
SMS 80%

42
Free WAP 17%
Peer Pressure 20%

43
Chapter 5:

Sales and Distribution Strategy,


Relation Between Brand and
Sales Strategy, Distribution
Strategy and Distribution
Network.
=========================

44
SALES AND DISTRIBUTION STRATEGY
National sales manager and General sales manager of Mobilink meet in a meeting
once a year with Head’s of Motorola. The meeting is held either in London or in
Pakistan. In this meeting Motorola gives Mobilink targets for the following year.
The targets are set through mutual consent and bargaining between the heads of
both the companies.

These targets are then further divided among the different cities of Pakistan. The
NSM and GSM of Mobilink delegate the targets to be achieved to the sales
Manager of each city. Each city is geographically divided among North, South and
central regions and is given a specific target to achieve. These targets are given
after analyzing the business to be achieved in one year. Now this target is further
divided.

Mobilink caters its services through Director, Indirect and In-house selling.

MOBILINK DISTRIBUTION CHANNEL

DIRECT SELLING INHOUSE SELLING

DEALERS CONNECT INDIVIDUAL CORPORATE OFFICE TELESALES


SAL
ES

In all the cities sales are carried out by the above mentioned ways. By continuing
the same example the targets, which are given to Karachi, are further divided
among direct, indirect and in- house sales force.

Mobilink appointed employees while indirect selling is done through Connect


stores and Mobilink agencies do direct and in-house selling.

DIRECT SELLING:

45
In Mobilink Direct selling is dividing into two following categories:

• INDIVIDUAL SELLING
• CORPORATE SELLING

Sales people in both the categories are appointed by Mobilink.

In individual selling there are 3 team leaders., which have 5 sales executives
working under them. Each team leader has been appointed a specific territory e.g.
one is appointed the north territory of the city while the remaining two have been
appointed the south and central territory.

In corporate selling there is one team leader having 5 sales executives working
under him.

CORPORATE SELLING:

The corporate sales force of Mobilink consists of one team leader and 5 sales
executives. Since in corporate selling the presentation skills of the sales executive
counts a lot therefore only those sales executives, which shows good performance
in individual selling are shifted to corporate selling. The corporate sector is further
divided among the following categories:

CORPORATE SECTOR

FINANCE PETROLEUM PHARMA HOTELING AIRLINE &


ADVER
TISING

46
Sales offers are made to large corporation or customers. The usually offer
discounted line rents and other extra features in order to gain large accounts. The
requirements for the deal to go through are mentioned in the offer.

There is one sales executive in each category of corporate sector except for finance
in which there are two sales executives.

The targets are given individually to each sales executive on weekly basis but they
have to report their daily performance to their team leader.

The sales strategy of corporate sector is a little bit more complex than the
individual sector. In corporate sector the emphasis is not much on cold calling but
rather on increasing sales through references and long term relationship between
the sales executive and the buyer. The sales executive is expected to made 4-5
calls per day which can result in future sales and apart from that the executive is
also expected to make 3-4 cold calls.

The sales executive divides its time schedule in such a way that he daily performs
three tasks, which are:

1. Meet the current and previous buyers, which can help in increasing the
future sales.
2. Meet with people who are not current buyers but are prospects.
3. Try to solve the problems of present customers relating to Mobilink. Is the
sales executive is unable to solve the problem then he should direct the
customer to Mobilink’s help services.

The emphasis in corporate selling is on relationship selling. The sales executive is


expected to go to ties present customer’s at least once a month, in order to ask
them if they have any problems with Mobilink and also to tell them about new
packages which can suit them and which Mobilink is offering. This visit, which is
termed as unofficial, straightens the relationship between the sales executive and
the client.

A good sales executive makes sure that when he goes to some office then every
body in that particular office who can be a prospect must know him. Usually the
sales executive meets with the Big Boss who has the authority to give Mobile
phones to its employees and also has lots of references. During the conversation
the sales executive tries to make out the future prospects. This cordial relationship
also helps the sales executive in further reference selling because a satisfied
customer can promote a product in the best possible way.

INDIVIDUAL SELLING:

47
There are three team leaders in individual selling. The weekly targets are given by
sales manager to the team leaders. Under each team leader there are 5 sales
executives, which are also given individual targets to be achieved in a week. These
sales executives have to submit their daily performance report to their individual
team leaders.

Each sales executive is allowed to make sale to anyone in his territory, i.e. if an
sales executive is working for the north territory of the city then he is allowed to
make sales to anyone in that particular territory.

Mostly a sales executive dealing in the individual category of Mobilink first tries
to sell mobiles through his own contacts and references. Then he tries to obtain
references of the people which are within his contact and that’s how the chain
proceeds.

The sales executive also makes a number of cold calls. The sales executive also
depends upon creative selling in which he tries to arouse demand and influence
patronage. He tries to convince the prospect in the least possible time that he has a
need for cellular phone.

IN-HOUSE SELLING:

There is one supervisor in in-house selling and two sales executives. They are
basically not given any targets as their job is to given connections to those who
come into the office to acquire one. They also help in giving information to the
clients about different packages.

TELE-SALES:

There are 5 Tele-sale girls in Mobilink. They help the sales executives in both the
individual and corporate selling by identifying prospect customers to them. They
make cold calls and if there is a hop that the person on the phone cab be a prospect
buyer then they give the number to the sales executives.

Mobilink distribution channel also includes:

• Ordinary dealers
• Mobilink GSM CONNECT

Both these modes especially the new Mobilink CONNECT stores are ways to
benchmark Mobilink mobile phone services against those of competition.

ORDINARY DEALERS:

48
Mobilink has the largest dealer network with over 100authorized dealers selling
connections nationwide. The company provides dealership on pure commission
basis and usually no extra benefits or incentives are given to the dealers. However
if a group of about 20 to 40 people comes as a group then they might be given a
10% to 20% discount on line rent.

CRITERIA FOR DEALERSHIP:

The criteria for giving dealership at Mobilink GSM is that the dealer:

1) should be in mobile business for quite some time


2) should deposit the required amount which is refundable.
3) Should have the required bank balance

Since Mobilink GSM has had a monopoly in the mobile business as it is the only
GMS service available in the country, it does not give any added incentives to its
dealers nor does it compromise with them in any other way.

MOBILINK GSM CONNECT:

Mobilink has now come up with the introduction of Mobilink Model Dealership
Shops under the name of “Mobilink GSM CONNECT”. These model dealership
shops are based on the concept of rapid service counters for merchandising
Mobilink products and services. Now a customer cannot only get a new connection
from these outlets but also pay their monthly bills as in any other Mobilink
Business Centre. Shortly, these shops will begin to cater for the entire rage of
customer services as well.

The franchise program has been rolled out with three shops at the following
locations.

• Davis Road Lahore


• Center Point Lahore
• Shahrah-e-Faisal Karachi

Keeping in mind the rate at which Mobilink GSM customer base is growing the
company plans to expand this network to around 24 outlets to all the major cities
of Pakistan, which will result in enhanced accessibility for you to Mobilink
services at familiar surroundings across the country.

Mobilink is trying to pick out the best of it’s dealers who have produced high
quality result for Mobilink over time and it then include them in this franchise
program. These CONNECT stores are working independently but work under the
complete supervision of Mobilink GSM and are required to fulfill set targets given

49
by the company executives. Mobilink is aiming to completely sweep away its
other dealers and rely only on CONNECT stores.

Each Mobilink GSM connect works independently, however I needs to daily report
to Mobilink GSM. They have their separate executives and sales force who are
also under the indirect supervision of the company.

MOBILINK GSM CONNECT (KARACHI):

The first Karachi CONNECT store was given to Asad Enterprises who were the
best performing dealers of the company at that time. It started operating on April
15, 1999. the organization of this store is such that it has manager finance and a
manager sales working under the chief executive. It has its own sales force and a
set of employees as shown in the CONNECT Organization Chart.

It is given a set target by Mobilink GSM of around 300 new connections per
month and it’s sales manager has to report to the company about daily progress.
So, it is under the strict supervision of Mobilink, which ensures better performance
and customer service.

The reporting includes:

• Daily Sales
• Daily Telesales
• Daily Billing

RELATIONSHIP BETWEEN BRAND AND SALES


STRATEGY

Mobilink GSM has so far been the only GSM service provider in Pakistan.
Therefore Mobilink has always related its sales strategy to its unique brand name
“Mobilink GSM”. In short the brand name says it all. We have shown how Brand
strategies and sales strategies relate to each other inn this business. Also we have
given a general overview of how Mobilink relates both these strategies.

Marketing: Service providers require the investment in form of

• After sales and sales support / service


• Marketing
• Advertising
• Customer education
• Competitive pricing

50
Establishing the brand: To a certain extent, the service providers would be
directed by market forces in terms of which brand to support. Thus , brand
awareness would be of extreme importance; the brand with the greatest ‘top of
mind’ recall would be the strongest in the long run.

Currently, brand awareness and loyalty are driven by past experience and work of
mouth. These two factors lead to solid brand values but slow market expansion.
The catalyst to market growth would come from brand awareness which,
eventually would convert into brand loyalty by following the appropriate strategy.

Mobilink also relies on brand awareness and brand loyalty, for the matter it’s
market expansion has been slow but steady. All along Mobilink has not been
concentrating more on brand loyalty than on market penetration unlike its
competitors. Initially they were only targeting the middle upper class, as their
product was expensive because they have taken out a new package “GSM Smart”
charging low line rents to reach the middle income sector of the economy.

Sales and after sales support: Cellular trade is based in sophisticated technology,
which has been changing rapidly. As a result, consumers keep graduating to more
sophisticated instruments ad better service features. This translates into repeat
business for the service providers and equipment manufacturer. Good system of
after sales support / service would ensure that the customers stay satisfied and keep
returning.

 Mobilink supports it’s sales by providing after sales service in the form of
“customer service” to it’s customers as it believes in retaining it’s current
market as well as generating future business from the connections of current
customers. Mobilink has a separate “customer service” counter at each of
it’s CONNECT outlets in order to deal with customer complaints and
suggestions.

 Also, it has been providing added benefits and changing packages to suit
the needs of different customers. The following are the packages that
Mobilink is presently providing to suit the needs of different customers.

 The marketing and sales people work hand in hand to relate their brand and
sales strategies in order to support each other.

GSM Saver:

Then choice for fist time customer’s. Who wants to judge their initial usage and
get a feel for Mobilinks Value added services.

51
GSM Budget:

Within an hour of free calls, affordable GSM Budget is ideal for Budget conscious
people.

GSM Regular:

The choice young professional and small business owner looking for great value
with one twenty free minutes.

GSM Frequent:

Perfect for busy professional whose jobs demand that they stay constantly in
touch. Three hours of free calls cater to their usage requirements.

GSM Premium:

When only the best will do, this package is ideal for chief executives and
entrepreneurs who want great value with the latest features. GSM Premium offers
free incoming calls all day long.

Forging relationships with Dealer:

Service providers would have to work with the dealer in terms of training and
resource investment to provide this service.

Mobilink has therefore come up with the idea of giving CONNECT franchises to
its best performing dealers all around the county.

Concluding, this is how related its sales strategies in general to its brands. .

DISTRIBUTION STRATEGY AND DISTRIBUTION


NETWORK

Distribution strategy and distribution network of Mobilink is similar to sales


strategy and sales network of Mobilink.

Mobilink has basically based its sales strategy by dividing its territories and by
making its sales by distributing the targets among various sectors and categories in
each city. The sales force hired by Mobilink and distributors who are responsible
for making the sales are also responsible for distributing the service. Hence the
network through which sales are made is similar to network through which the
service is distributed.

52
CHAPTER # 6:
SWOT ANALYSIS & VALUE
ADDED SERVICES
===============================================================

53
SWOT ANALYSIS

Strength:
Most of the strengths are technical related.

• Mobilink is the only mobile service, which provides coverage on Motor


Way.
• International Roaming: Mobilink the only provider of international
roaming offers plastic roaming.
• Single nation access code: Only one system code (0300) allows you to call
Mobilink phone no matter which city is it roaming in, unlike Instaphone
and Paktel for whom you are required to dial the code of the city where the
phone is roaming at the moment.
• Accurate Billing: Mobilink has a state of the art billing system, which
provides you with accurate billing details. This system is currently rated as
being among best in the industry worldwide.
• Repair and Warranty Service: Customers have the option of purchasing a
12-month warranty/service for their Nokia or Motorola telephone
equipment.
• In order to increase efficiency of communication, Mobilink is looking
forward to introduce 400 thousand new line connections.

WEAKNESS:

• It doesn’t provide SITE Area coverage. This is a major weakness of


Mobilink as it is an industrial area and its coverage is important.
• On slightest delay in the payment of bill by customer , his line is
disconnected to his utmost dismay and annoyance.
• It is expensive than other mobile services working the country.

54
OPPORTUNITIES:

• The Mobilink phone and cellular phones market expanding / growing


rapidly.
• Mobilink GSM can acquire “Irdium Technology” (Satellite technology) and
lower its rate.

THREATS:

• There are many competitors in the market offering different economic


packages so Mobilink has chance of losing customer.

VALUE ADDED SERVICES

WEEKEND CALLING:

25% discount on peak rates on both incoming and out going calls through out
Sunday.

LATE NIGHT OPTION:


Free incoming and outgoing calls from 10:30 PM to 7:00 AM just Rs. 350.

CIRCLE OF FRIENDS:

25% discount on peak rates on all Mobilink outgoing calls.

55
2 –in- 1- Sim:

This service enables the user to have two mobile numbers on the same phone
number.

FREE CALL WAITING:

Alerts the user for an incoming call when the user is already on the phone.

FREE INTERNATIONAL CALL BARRING:

Helps the user to control costs by letting the user to bar international calls.

56
CHAPTER 7:
SUCCESS FACTORS OF
MOBILINK
=========================

57
The success factors of Mobilink are as follows:

PIONEERS IN PAKISTAN:

Mobilink are the pioneers of Mobilink in Pakistan. They basically work on GSM
system, which covers whole world. The SMS was also introduced by Mobilink
along with international roaming facility.

MARKET SHARE:

Mobilink has an edge over competitors and still have an higher market share
(90%).

CUSTOMER BASE:

The customer base of Mobilink is about 2.2 million. The customers still rely on
this service being as a brand loyalty.

EXPANSION IN TERMS OF CAPACITY:

Expansion in terms of capacity means they are going to extend their network with
more advanced technology and without any disturbances causing to their valuable
customer. More investment is being done to introduce new services, which are
under process, and testing is on.

58
INVESTMENT:

A lot of investment by local and foreign investors is making its way for Mobilink
as pioneers to stay in market as being the market leaders and having an upper edge
than others.

59
Chapter 8:

Findings, Conclusion &


Recommendation

60
Findings

• Research shows that range of pocket money/extra allowance of Students who


use GSM service is between RS 600 and RS 15000. These college going
students belong to upper middle and upper income group families.
• More than 50% of the respondents have income/pocket money more than RS
2000.
• Mostly students use it for their personal usage and consider it a necessity
because of lack of law and order in cities like Karachi.
• Students prefer Pre paid packages because these packages are affordable to
them and convenient to use. No hassle of billing in excess of their resources.
• Parents pay the bills of their children by giving them extra allowances for
cellular service for the purpose of convenience.
• Around 70% of the students using GSM mobile phone service are satisfied with
GSM network.
• Students consider SMS, a high involvement factor because they use it for
getting notifications from web and chatting with friends.
• MOBILINK is being rated # 1 for satisfying customer needs. MOBILINK has
improved its service after putting charges on SMS but on the other hand it
became a small dissatisfying factor for students because they were using SMS
as a chatting and communication tool with their friends.
• Mobilink dominates the Pakistani market due to the initial free SMS service.

Due to this service most people opted for Jazz and hence Mobilink got an edge

over its competitors.

• Six-month validity of cards has increased MOBILINK users but it ahs reduced
their frequency of purchasing Pre-paid cards. Other companies also following
MOBIL Ink’s policies of six-month validity of pre-paid cards.
• GSM service gives better reception and service as compare to Analog service.

61
• Customers think that there is no future of Analog service but Analog service
providers are making their service digital but still they cannot come with par
with GSM network that gives convenience, low cost, Value added features etc.
• Students need more WAP services added to their cellular network to remain in
touch with latest updates and entertainment stuff.
• JAZZ (MOBILINK) remains the most popular package among students because
JAZZ captured the market and most of the users have this package and it is
cheaper to call and message from a JAZZ connection to JAZZ connection. So
Students prefer JAZZ network because of SMS, peer pressure and price.

Recommendations
• For Students MOBILINK should introduce limited FREE SMS on daily
basis because it is becoming a dissatisfying factor for current users who
have bought JAZZ when SMS was free.
• Price of new JAZZ connections is too high which is changing its positioning
strategy and its image in the market. JAZZ was launched as low priced
mobile phone service but currently it is the most expensive service.
MOBILINK has increased it price because they don’t want to increase
customer base of JAZZ any more but it is affecting Jazz’s positioning.
Company should withdraw new JAZZ connections in order to halt its sales.
• Six-month validity of cards has increased number of customers but their
frequency of purchase of pre paid cards has reduced.
• MOBILINK should focus on its quality of its service and should emphasize
more customer confidence that is going down because of high prices of new
JAZZ connections.

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