Marketing Management Final Project

7/30/2019 Marketing Management Final Project

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NAME: SUBMOTTED TO:

UZAIR GULZAR SHAIKH SIR GHOUS ALI SHAH

REG NO: 1011159

SEMESTER: BBA-6


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TABLE OF CONTENTS

TOPIC PAGE NO

Acknowledgement 2

Introduction 3

History 4

Mission Statement & Vision Statement 5

Organizational Chart 6

Marketing Programs 7

Zong as a Brand 8

Market Share 9

Market Segmentation 10

Target Markets 10Positioning 11

Differentiation 11

Total Market Orientation 12

Competitive factors for Zong 12

Marketing Mix of Zong 13to14

SWOT Analysis, Eternal & External Audit 15to17

Competitive Advantage 18

Challenges 19

Future Plans 20

Future Strategy 20

Conclusion 21

Recommendations 22


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Acknowledgement

Start with the great name of Allah the most beneficent & the most merciful whose

blessings are a abundant & favors are unlimited.

Iam also thankful to my worthy Teacher: SIR Ghous Al i Shah, who has given me such a

tremendous opportunity to work on project of Marketing Management.

Iam also thankful to my respectable Parents who have given me opportunity to study at

Wonderful & well known Only Business Institution of Larkana known as a SZABIST

LARKANA CAMPUS.

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Introduction

Recently China Mobile Company in Pakistan have introduced its new brand called ZONG

With introductory slogan Say everything orSub Kah Do and started its advertising campaign

at popular print and electronic media outlets. ZONG is the first international brand of China

Mobile being launched in Pakistan. The company often recognized as China Mobile Pakistan. It

meant to authorize and liberate the people of Pakistan in every corner of 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 concentrate of ZONG is to allow people to

communicate at their wish & will. Without worrying about tariffs, network coverage, capacity

issues or congestion. ZONG will be supported by ground breaking communications, trend setting

customer service and matchless product offering which will refine rules of game and establish

ZONG as a serious competitor for number one mark. ZONG would offer its customers with

entertaining and innovative VAS and will allow them by giving a wide verity of products,

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

this brand with others to follow.

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History

China Mobile is the world's prime telecom operator. Having a customer base of over 300 million

customers, its network routes 700 million text messages every day and handles 250 million calls

every hour. China Mobile Pakistan (CMPak) is a 100% contribution of China Mobile.. So far

CMPak has invested more than US$ 700 million in the telecom sector in Pakistan and an further

US$ 800 million will be invested till the end of year 2008.With ambitious plans to cater to the

fastest growing Pakistani market and to win over the ever demanding Pakistani customer, it will

be offering unique coverage, voice and data services as well as a wide range of tariff options to

choose from. CMPak's edge comes from the experience and proficiency of running the world's

largest telecom service and the commitment they make to setting of quality .

CMPak is geared to offer smartly packaged VAS products that will benefit the individuals,

corporate as well as small businesses. Lead by a team of professionals from the field of cellular

communication, CMPak is determined to make its mark in the Pakistani market and to change

the way people communicate. ZONG is the first international brand ofChina Mobile, launched

in Pakistan in 2008.

The company is often cited as China Mobile (Pakistan) or CMPak. As of late 2011, it had a

subscriber base of 13.2 million.

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http://en.wikipedia.org/wiki/China_Mobilehttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/China_Mobile


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Mission Statement

To be the leading mobile operator of Pakistan, innovating & off eri ng exceptional quali ty

services corporate cit izen & envoy of f ri endship between China & Pakistan.

Vision Statement

Make Communication Exciting.

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Organizational Chart of Zong.

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Marketing Programs

As the customers are spread all over the country, the broadcast medium is used to communicate

the value of the product.

Local medium like sign boards, billboards, posters & wall choking is used to communicate the

value.

Local area franchise work in different areas & have the people who can communicate in local

language.

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Zong As A Brand

While keeping its tradition of being the trend is used in the industry, Zong has altered the image

of mobile phones from a luxury only affordable by the elite, to a necessity affordable by the

common man. Since its foundation, Zong has positioned its brand for masses. In keeping with

the upcoming competition and market dynamics, Zong has increased its focus on the youth

segment (which comprises 50% of the population), with the Prepay brand. By designing market

focused products, Zongs brand team initiated brilliant campaigns, which has enlarged the brand

equity. The new brand image gained huge familiarity among the targeted market. A recent

marketing survey conducted by a famous marketing research company showed that Zong has

boosted its brand visibility and image. Zongs Prepay brand is now considered as a

one of the most favorite brand by the youth market and is followed by other mobile operators

initiating their respective brands for the youth market.

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Market Share

Zong holds 15.4 percent of market share which is growing every day as it added more than 4

million subscribers to its base thus reaching about 19 million total subscribers.

Zong managed to boost its growth up to 34.1 percent.

Zongs future strategy is to become the largest network operator in the country & his team has

already started working on its growth plans which will surely take the Zong at high level.

Zong have already launched the services which will help them to achieve its goals

Among the five mobile operators who are competing vigorously for a share of the subscriber

base & the revenue, Zong has climbed up on the 4th position with 15.4 percent market share even

after being the latest entrant in the market.

Though within the short time Zong has occupied its greatest place in cellular market of Pakistan.

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MARKET SEGMENTATION

Cellular service market is a dissimilar set of people. Zong as well, as other cellular service

companies segment their market on four bases: - economy, age, gender &occupation, Zong also

emphasis on that.

ECONOMY: Upper class, Middle class, socio-economic class, lower class

AGE: Teenagers, youngsters, middle age, aged people

GENDER: Male & Female

OCCUPATION: corporate class, Business class, working class etc

TARGET MARKETS:

Cellular phones are the technology of new era, the 21st century. These cellular phones are the

main focus of our youngsters. All the cellular companies are targeting The Youth one way or

other. Zong is no longer a follower in this race. Its main focus is THE YOUTH of Pakistan

which is its Target Market.

Target marketing strategy:

Zong has always been targeting Youth Market by using young brand endorsers or

representatives. It always brings such packages and offers that particularly meet the needs of our

young people. No doubt it has also launched packages, brands and offers for working people,

business class, ladies and aged ones. Zong looks for to target masses in the long run.

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POSITIONING:

Positioning is the process of creating an image of companys brand in the mind ofmarket.

Companies position themselves emotionally, functionally or on the basis of brand quality. Zong

is still a market challenger in comparison to market leader MOBILINK. It is still to reach to the

top most position of cellular companies. So, Zong positions itself on the basis of its services.

Ufones positioning strategy:

Zong has changed the image of mobile phones from a luxury only affordable by the elite, to a

necessity affordable by the common man. Since its inception, Zong has positioned its brand for

MASSES on the basis of services it is providing and its lowest call rates. It makes them

believe that it satisfies the needs of everyone (vizall classes, age & genders). It tells them that

Zong is there when anybody needs it. The brand name Zong itself is a positioning statement.

DIFFERENTIATION

In these days of strong competition marketers find it hard to differentiate their services from

those of competitors. Now customer care about only price. A displeased customer will

immediately go for brand switching. Thus leaving a customer unsatisfied and not meeting his/her

demands is out of question for marketers.

Differentiation Strategy :

Zong has always strategized in fulfilling the demands of their customers. In doing so it has been

successful in differentiating itself in terms of:-

Price

Quality service

Technology

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TOTAL MARKET ORIENTATION

Total Market Orientation is about understanding and meeting customers expressed and hiddenneeds.

Strategy :

Zong has always considered the ever rising needs of low call rates and quality service. It has

given its customers their need based packages and Zong has introduced such a brands &

packages which meet with customers hidden needs as well.

For example 5 ka15 is result of a hidden need of women of our society. They plan to make a short call

but it becomes a long one unintentionally due to gossips and chit chats.

Competitive Factors for ZONG.

Major Competitors of ZONG include:

Mobilink

Ufone

Telenor

Warid

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Marketing Mix of Zong.

PRODUCT/SERVICES

Zong is a service providing company. Service is a intangible product that is consists ofactivities, benefits or satisfactions offered for sale.

Strategy:

Zong makes strategies to provide superior cellular services which surpass its competitors alllevels. When Zong introduces a new package in a market, it actually makes it a completepackage of core benefit, design, features, brand name, quality, and after sale service.

PRICE

Cellular service providers are facing extreme price competition in modern market. Customers

perceive pricing as the heart of brand selection. Price has always been the core differentiation of

Zong. Zong is the one who is offering least call rates.

Strategy :

Zong strategize to confine the offered pricing needs of its customers and use it well on

occasional or timely basis. For example Ufone offered very good call rates on international calls

in Eid days. It provides hourly call rates in Ramadan when people were least likely to avail the

offer that much that it might prove unprofitable for Ufone. It was a fantastic strategy to beautify

the brand image in term of pricing in customers minds as well as remain profitable in doing so.

Ufone follows market penetration pricing strategy and dynamic pricing strategy to meet the

customer needs and ever changing price competition.

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PLACE

Place plays a vital role in the distribution and promotion of services. Competitors of Zong arelooking for penetrate into places where others havent reached. Cellular service providers areseverely widening their network & coverage in every area of Pakistan.

Strategy:

Zong strategize to increase its coverage to all places in Pakistan in order to assemble the

requirements of its increasing customer base. Now Zong is heading from cities to remote

northern areas in growing its network. Zong has intensive promotion in cities, but it is also

considering improving its promotion in rural areas as well as.

PROMOTION

Zong considers Integrated Marketing Communication which is a cautiously merged mix ofpromotion tools. Zong uses diverse marketing activities and channels to communicate anddeliver value to customer. These activities are coordinated to provide maximum communicationoutput. These communication channels includes:-Advertising, sales promotion, public relations,direct marketing & personal selling. Zong strategize to carry out promotion in order to increaseits market share.

Strategy :

Advertising (discussed later)

Sales Promotion (discussed later)

Public Relations : Zong is less conscious of developing its general public relations. But recently it haslaunched its Hajj Guide service on Ufone. It avoids getting in news stories and disagreementsbut sometimes it proves predictable.

Direct Marketing : Zong use on-road umbrella franchises where the directly market and sell theirconnections and Sims.

Personal Selling : Zong administer personal selling facility to sell their Post Pay connections targeting wellto do people and businessmen

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SWOT Analysis of Zong.

Internal Analysis:

Strengths

Lowest Rates Nation Wide.

Zong provides lowest rates as compare to other telecom industry its a great thing which is only

provided by Zong.

Short image of Parent Company

Zong have a strong image of their parent company china mobile. That is plus point of zong.

Network portability

Over 500,000 people have been switched to Zong from other networks.

Zong Mobile

Zong has come up with another interesting promotion; you can get a mobile almost free but witha years payment in advance.

Location & Geographical Coverage

Zong is covering the northern areas of Pakistan rapidly.

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Weaknesses

Bad image

Bad image of associate with Pakitel & still now having old staff of Paktel.

Bad Standing

Zong have weak brand standing as compare to other telecom companies because they are new in

the market.

Bad MIS

Zong doesnt have the proper lists of its customers. It has the list but this list is not authenticwhich is increasing the unauthorized use of its sim specially prepay. Zong have to take serious

steps to properly list its customers to make sure that there is no misuse of information.

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External Analysis

Opportunities

Expand Globally

Zong can expand the globally & can develop its strategy in other countries.

Acquire/Merger

As Warid is going in loss & in the condition of liquidation its big opportunity for Zong to acquire

Warid telecom.

New product development

Zong Can introduce new products such as dish TV.

Opportunities in northern areas

Zong can have a clear edge over the competition in the Northern areas especially, as China

Mobile has huge experience of network operation in similar high mountainous areas in China

itself.

Pak China Border

Zong can cover the border of china, with the karakoram highway & can play an important role in

cargo transportation.

Threats

Threat of new entrance.

Bargaining power of buyers.

Bargaining power of suppliers

Threat of substitute product.

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COMPETITIVE ADVANTAGES

Its an advantage over competitors gained by offering consumers greater value thancompetitors

Offer. Zong strategizes to gain more and more competitive advantages. It also uses these

competitive advantages well enough for its promotion. Currently Zong is enjoying the following

competitive advantages:-

Lowest overall call rates

Value added Services (VAS)

Call block service

Corporate color

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CHALLENGES

Zong faces many challenges with the ever growing needs of telecommunication. It must remain

profitable with the decreasing economical situation of Pakistan. It must grow as well in these

dark times if it has to remain in the market. Zong faces very strong competition from its

competitors. It must offer lowest rates with better quality service. New features and services

should be introduced to make its customers loyal, happy and satisfied.

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FUTURE PLANS

Keeping in view the growth potential of the cellular industry there is no option but to be

aggressive in order to remain a potent force in the cellular industry.

In order to extend cellular network Zong has finalized a huge network expansion

contract amounting to about USD 550 million, which will enhance the subscribers capacity by

10 million. This is the largest ever expansion project of Zong.

A strong focus will be on maintaining high quality of service, which is always a

benchmark of Zong, increasing usage and exploring new revenue streams on value added

services, market visibility through various market initiatives to fulfill subscribers satisfaction

sand demand and above all to increase the value of investment for the shareholders.

Future Strategy:

More transparency & increased flow of information between CMCC & Zong

Acquisition of other cellular companies in Pakistan.

Market leadership by utilizing strengths & acquired companies.

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Conclusion

Since CMCC has taken over, Zong has accomplished great milestones. Some of the

achievements are as follows:

Growth in the subscriber base from 2 million to 6 million.

Many products like BYN Franchise, Super Free Number, BYN Home Delivery, BTO Media

Campaign, Yaari Load, Unlimited Free Numbers, 12 Aana package, 8 Anna package, SMS

bundle, Handset offer etc were launched.

The industry record was broken by setting up over 3000 BTS Towers in a year as Phase one

regime.

Many mini exchanges were installed for capacity building; network has a capacity to now

support 2 corore users.

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Recommendations

Zong Telecom should increase their network coverage & foot prints in every corner ofthe country.

In the SBU of Zong mobile Zong should use the strategy of hold & maintain Zong should hire the skilled management. Zong should not waste their opportunities & get more help as possible. Zong should adopt the strategies of market penetration, development & of diversification,

but the most important strategy would be market penetration.

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Documents

Marketing Management Final Project