Mobilink GSM -Introduction
Pakistan Mobile Communications Limited (PMCL) better known as Mobilink GSM is a telecommunication service provider in Pakistan. Mobilink started operations in 1994 as the first GSM cellular Mobile service in Pakistan by MOTOROLA Inc., later it was sold to Orascom, an Egypt-based multi-national company. It 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 24 million and growing. Mobilink prides itself 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 offers exclusively designed tariff plans that cater to the
communication needs of a diverse group of people, from individuals to businessmen to corporates and multinationals. To achieve this objective, Mobilink offers both postpaid (Indigo) and prepaid (JAZZ) solutions to its customers. Compared to its 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, Mobilink also offers a host of valueadded-services in its Mobilink World brand to its prized customers. At the same time, Mobilink places high importance to its coverage, which is why it covers its customers in 5000+ cities and towns nationwide as well as over 100 countries on international roaming service. Mobilink is also the official telecommunication service provider for the Pakistan Cricket Board (PCB). The company was awarded the license to operate in Azad Jammu and Kashmir (AJK) on 27 June-2006.
1
MISSION
“To be a superior communications service company in Pakistan which provides the best value to its customers, employees, business partners and shareholders.”
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".
Marketing mix
It is the set of marketing tools a firm uses to pursue its marketing objectives. McCarthy has classified these tools into four broad groups, called the four Ps of marketing:
1. Product 2. Price 3. Place 4. Promotion
2
PRICING:
“The amount of the money which a customer pays for getting the product is called price.”
Basically price is the first impression of a product which a customer perceives. When price of a product would be different from its competitor customer would think that there must be some difference in the quality as well. So this can easily be said that, “The price is directly associated with the quality and brand name of the product.”
SELECTING THE PRICING OBJECTIVES:
The company first decided where it wants to position its market offering. The clearer the firm’s objective the easier it is to set price. A company can pursue any of five major objectives through pricing: ? Survival ? Maximum current profit ? Maximum market share ? Maximum market skimming ? Product-quality leadership The main objective of the pricing for mobilink indigo is to survive in the market. The profits are less important then survival. According to mobilink indigo there are two kinds of pricings, 1) Purchasing price i.e. initial connection price 2) Regular price i.e. call charges per minute
3
“We do not have found any complains from the customers regarding the price. They are willing to pay the price and we are willing to give them the best services”
Pricing Strategy of Indigo:
Mobilink is also offering postpaid connections with the name of Mobilink Indigo, popular within the business class. In this way, Mobilink is earning maximum profits by enabling people from different target segments to become a part of the largest cellular network in Pakistan. Jazz customers can now call US and a number of other Zone 1 destinations on Jazz local outgoing rate!
Mobilink indigo have following current price Rates on different packages:
How you express yourself, defines who you are. With indigo, not only can you express more with exclusive value-added services, but also enjoy more choice in plans and discounted airtime rates. Contoured to become part of your expression, indigo ensures that you derive utmost value out of all your communications, and feel free to be yourself. one hundred If you want to enjoy postpaid privileges with the least amount of line rent, this package is for you. Welcoming you aboard the postpaid lifestyle, I-one hundred also offers the best SMS rates keeping in mind your utmost convenience
Details
Tariffs
4
Line Rent Free Minutes Call SMS Mobilink Other Operators All Networks
Rs. 100 100 Rs. 1.25/min Rs. 1.50/min Rs. 0.2
four hundred
For those who want to spend less and talk more. Postpaid affordability comes into play with i-four hundred, where you start enjoying free minutes and a competitive tariff – for an indigo experience attuned to your monthly usage Details Line Rent Free Minutes Call SMS Mobilink Other Operators All Networks Tariffs Rs. 400 400 Rs. 1.00/min Rs. 1.50/min Rs. 0.75
nine hundred
An ideal package if you are seeking a blend of value and economy. A package that not only gives you more FREE minutes, but also FREE GPRS usage
Details Line Rent Free Minutes Free GPRS Call SMS Mobilink Other Operators All Networks
Tariffs Rs. 900 900 100MB Rs. 0.75/min Rs. 1.50/min Rs. 0.75
5
Pricing Strategies adopted by Mobilink GSM:
It is well known brand of Mobilink. Previously Mobilink was offering Jazz connection for about 3000 rupees 5 years ago. Its market oriented statement is “Aur Sunao” But through the passage of time \now Mobilink is offering Jazz connections for about 100 rupees. In 2002 Ufone which is one of the leading competitor of Jazz introduced it’s prepay connection for about 2500 rupees. In 2005 Telenor came into existence in Pakistani market and offered its connections for about 500 rupees. Then in 2005 Warid also entered the market offering its connections for 250 rupees. In this way price war started between these telecom brands in the market. Previously it was Jazz’s oligopoly as they offered their prices.
Product-bundle pricing:
In 2005 Jazz offered a cell phone + connection + prepaid card implementing a product-bundle pricing strategy for creating more attention and attraction.
Promotional pricing:
The major shift in the pricing strategy came in when they started 30.second operations using the promotional pricing strategy. Initially directing towards promotional strategy as the competition between cellular brands in the market grew faster.
Captive-product pricing:
In the early days Jazz was offering its sim-cards for a high-price using captiveproduct pricing strategy as its sim-card is a main product that must be used along with the cell phone.
Discount and allowance:
Initially Jazz’s call rates and sms charges were also reduced using discount and allowance strategy.
Promotional and Psychological pricing:
Recently Jazz introduced its offerings of 0.99 per minute call rates in their “happy hour package” which represents their operations with the promotional as well as psychological pricing of their services. Through its happy hour package they are also operating with promotional strategy as they are engaged in continuous promotion through their offerings.
6
Segmented pricing:
Besides that Jazz adopted segmented pricing strategy as they were charging different call rates from one city to another. Its competitors have emerged tremendously they have responded efficiently towards their actions through cutting their pricing mainly applying promotional and psychological strategy. As Ufone, Telenor, Zem and Zong are offering great offers of call rates and sms rates, day by day Jazz in also responding efficiently through its strategic pricing offers.
Factors Effecting Price Determination:
Estimated Demand:
Mobilink always estimate the demand of the consumers and sets price according to meet the demand.
Competitive Reaction:
The market is very competitive in deed and it has to compete with the four potential companies. Setting the price Mobilink always sincere about the competitors action. When Telenor and Ufone offered the lowest out going call rates it also reduced the call rates.
Cost:
Total cost is a major factor in selecting the price of the package. Different types of cost like fixed costs, variable costs; total cost is a primary factor that influence the price of each product.
7
SWOT ANALYSIS Strengths:
? ? ? ? ? Pakistan's leading cellular organization Loyalty of Customers Developing prices according to the demand of the product Redemption against indigo bills International roaming
Weakness:
? The one of major issues that mostly customer complaint is billing issue. ? ? Call rates are higher than other cellular companies Large organizational structure
Opportunities:
? ? ? Develop new pricing strategies Provide value added services Adoptation of new technologies
Threats:
? ? ? Effective competitors in the market like Zong, warid, telenor and Ufone Price wars with competitors High tax rates
8
Conclusion:
Prices are very important because it is the only element that reduces or brings revenue for the organization. Different types of pricing are there like skimming, penetrating and product mix pricing strategies. Mobilink is the largest cellular company of the country. Mobilink uses different pricing strategies according to the demand of the product and the changes brought by the other cellular organization. To increase the sale of the product different promotional and distribution strategies are adopted. Product bundle strategies, Promotional pricing strategies, Discount and allowances and psychological pricing strategies are adopted in order to increase the quality of the product.
9
References:
? www.mobilinkgsm.com ? www.pta.com ? www.learnmarketing.com ? www.wikipedia.org ? www.google.com.pk ? www.scribd.com
BOOKS:
Principles of marketing (Gary Armstrong and Philip Kotler 10th edition) Marketing Management (Philip Kotler 11th edition)
10
doc_608001902.doc
Pakistan Mobile Communications Limited (PMCL) better known as Mobilink GSM is a telecommunication service provider in Pakistan. Mobilink started operations in 1994 as the first GSM cellular Mobile service in Pakistan by MOTOROLA Inc., later it was sold to Orascom, an Egypt-based multi-national company. It 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 24 million and growing. Mobilink prides itself 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 offers exclusively designed tariff plans that cater to the
communication needs of a diverse group of people, from individuals to businessmen to corporates and multinationals. To achieve this objective, Mobilink offers both postpaid (Indigo) and prepaid (JAZZ) solutions to its customers. Compared to its 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, Mobilink also offers a host of valueadded-services in its Mobilink World brand to its prized customers. At the same time, Mobilink places high importance to its coverage, which is why it covers its customers in 5000+ cities and towns nationwide as well as over 100 countries on international roaming service. Mobilink is also the official telecommunication service provider for the Pakistan Cricket Board (PCB). The company was awarded the license to operate in Azad Jammu and Kashmir (AJK) on 27 June-2006.
1
MISSION
“To be a superior communications service company in Pakistan which provides the best value to its customers, employees, business partners and shareholders.”
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".
Marketing mix
It is the set of marketing tools a firm uses to pursue its marketing objectives. McCarthy has classified these tools into four broad groups, called the four Ps of marketing:
1. Product 2. Price 3. Place 4. Promotion
2
PRICING:
“The amount of the money which a customer pays for getting the product is called price.”
Basically price is the first impression of a product which a customer perceives. When price of a product would be different from its competitor customer would think that there must be some difference in the quality as well. So this can easily be said that, “The price is directly associated with the quality and brand name of the product.”
SELECTING THE PRICING OBJECTIVES:
The company first decided where it wants to position its market offering. The clearer the firm’s objective the easier it is to set price. A company can pursue any of five major objectives through pricing: ? Survival ? Maximum current profit ? Maximum market share ? Maximum market skimming ? Product-quality leadership The main objective of the pricing for mobilink indigo is to survive in the market. The profits are less important then survival. According to mobilink indigo there are two kinds of pricings, 1) Purchasing price i.e. initial connection price 2) Regular price i.e. call charges per minute
3
“We do not have found any complains from the customers regarding the price. They are willing to pay the price and we are willing to give them the best services”
Pricing Strategy of Indigo:
Mobilink is also offering postpaid connections with the name of Mobilink Indigo, popular within the business class. In this way, Mobilink is earning maximum profits by enabling people from different target segments to become a part of the largest cellular network in Pakistan. Jazz customers can now call US and a number of other Zone 1 destinations on Jazz local outgoing rate!
Mobilink indigo have following current price Rates on different packages:
How you express yourself, defines who you are. With indigo, not only can you express more with exclusive value-added services, but also enjoy more choice in plans and discounted airtime rates. Contoured to become part of your expression, indigo ensures that you derive utmost value out of all your communications, and feel free to be yourself. one hundred If you want to enjoy postpaid privileges with the least amount of line rent, this package is for you. Welcoming you aboard the postpaid lifestyle, I-one hundred also offers the best SMS rates keeping in mind your utmost convenience
Details
Tariffs
4
Line Rent Free Minutes Call SMS Mobilink Other Operators All Networks
Rs. 100 100 Rs. 1.25/min Rs. 1.50/min Rs. 0.2
four hundred
For those who want to spend less and talk more. Postpaid affordability comes into play with i-four hundred, where you start enjoying free minutes and a competitive tariff – for an indigo experience attuned to your monthly usage Details Line Rent Free Minutes Call SMS Mobilink Other Operators All Networks Tariffs Rs. 400 400 Rs. 1.00/min Rs. 1.50/min Rs. 0.75
nine hundred
An ideal package if you are seeking a blend of value and economy. A package that not only gives you more FREE minutes, but also FREE GPRS usage
Details Line Rent Free Minutes Free GPRS Call SMS Mobilink Other Operators All Networks
Tariffs Rs. 900 900 100MB Rs. 0.75/min Rs. 1.50/min Rs. 0.75
5
Pricing Strategies adopted by Mobilink GSM:
It is well known brand of Mobilink. Previously Mobilink was offering Jazz connection for about 3000 rupees 5 years ago. Its market oriented statement is “Aur Sunao” But through the passage of time \now Mobilink is offering Jazz connections for about 100 rupees. In 2002 Ufone which is one of the leading competitor of Jazz introduced it’s prepay connection for about 2500 rupees. In 2005 Telenor came into existence in Pakistani market and offered its connections for about 500 rupees. Then in 2005 Warid also entered the market offering its connections for 250 rupees. In this way price war started between these telecom brands in the market. Previously it was Jazz’s oligopoly as they offered their prices.
Product-bundle pricing:
In 2005 Jazz offered a cell phone + connection + prepaid card implementing a product-bundle pricing strategy for creating more attention and attraction.
Promotional pricing:
The major shift in the pricing strategy came in when they started 30.second operations using the promotional pricing strategy. Initially directing towards promotional strategy as the competition between cellular brands in the market grew faster.
Captive-product pricing:
In the early days Jazz was offering its sim-cards for a high-price using captiveproduct pricing strategy as its sim-card is a main product that must be used along with the cell phone.
Discount and allowance:
Initially Jazz’s call rates and sms charges were also reduced using discount and allowance strategy.
Promotional and Psychological pricing:
Recently Jazz introduced its offerings of 0.99 per minute call rates in their “happy hour package” which represents their operations with the promotional as well as psychological pricing of their services. Through its happy hour package they are also operating with promotional strategy as they are engaged in continuous promotion through their offerings.
6
Segmented pricing:
Besides that Jazz adopted segmented pricing strategy as they were charging different call rates from one city to another. Its competitors have emerged tremendously they have responded efficiently towards their actions through cutting their pricing mainly applying promotional and psychological strategy. As Ufone, Telenor, Zem and Zong are offering great offers of call rates and sms rates, day by day Jazz in also responding efficiently through its strategic pricing offers.
Factors Effecting Price Determination:
Estimated Demand:
Mobilink always estimate the demand of the consumers and sets price according to meet the demand.
Competitive Reaction:
The market is very competitive in deed and it has to compete with the four potential companies. Setting the price Mobilink always sincere about the competitors action. When Telenor and Ufone offered the lowest out going call rates it also reduced the call rates.
Cost:
Total cost is a major factor in selecting the price of the package. Different types of cost like fixed costs, variable costs; total cost is a primary factor that influence the price of each product.
7
SWOT ANALYSIS Strengths:
? ? ? ? ? Pakistan's leading cellular organization Loyalty of Customers Developing prices according to the demand of the product Redemption against indigo bills International roaming
Weakness:
? The one of major issues that mostly customer complaint is billing issue. ? ? Call rates are higher than other cellular companies Large organizational structure
Opportunities:
? ? ? Develop new pricing strategies Provide value added services Adoptation of new technologies
Threats:
? ? ? Effective competitors in the market like Zong, warid, telenor and Ufone Price wars with competitors High tax rates
8
Conclusion:
Prices are very important because it is the only element that reduces or brings revenue for the organization. Different types of pricing are there like skimming, penetrating and product mix pricing strategies. Mobilink is the largest cellular company of the country. Mobilink uses different pricing strategies according to the demand of the product and the changes brought by the other cellular organization. To increase the sale of the product different promotional and distribution strategies are adopted. Product bundle strategies, Promotional pricing strategies, Discount and allowances and psychological pricing strategies are adopted in order to increase the quality of the product.
9
References:
? www.mobilinkgsm.com ? www.pta.com ? www.learnmarketing.com ? www.wikipedia.org ? www.google.com.pk ? www.scribd.com
BOOKS:
Principles of marketing (Gary Armstrong and Philip Kotler 10th edition) Marketing Management (Philip Kotler 11th edition)
10
doc_608001902.doc