Final projects

Business Report on Mobilink GSM

Final Project Of

Introduction To Business

 

Submitted By:

Group Members:                             I.D

Syeda Faiza kazmi                  15037

Ayesha Mubarika                    15373

Rafia Shahab                          15004

Saira Zulifiqar                          15529

Syed Ali                                   15116

 

 

Submitted To:

Sir Raja Mazhar Hameed

 

Table of Contents

Acknowledgment

Executive Summary.

Introduction.

Mobilink Profile.

Mobilink Vision Statement

Mobilink Mission Statement

Goals and Objectives.

Achievements.

Marketing.

Marketing mix.

Product

Price.

Place.

Promotion.

Product Service.

Mobilink Jazz.

Jazz Offerings.

Jazz Budget

Jazz Octane.

Jazz Ladies First

Jazz Easy.

Jazz Share.

Jazz Advance.

Jazz Load.

Pricing.

Competitive Marketing Strategies.

Management .

Finance.

Mobilink Social Responsibility.

Social Responsibility Program Policy.

Mobilink Flood Relief Efforts.

Expansion of SMS-based Literacy Initiative.

Mobilink Supports IDPs.

Mobilink Past and Current Ethical issue.

Global International business issue.

Countries in which Mobilink operate.

Recommendation.

 

 

Acknowledgment

First of all we are very thankful to ALLAH-RAB-IZZAT who gives us such command, understanding and capability to achieve our goals. Without His kind help we would not be able to do this report.

We are thankful to our teacher Sir Raja Mazhar Hameed for coaching us this course of Introduction to business. His resourceful knowledge in this authority and unique teaching style has developed our knowledge and cleared many ambiguity. Lastly, I offer my regard and blessings to all of those who support me in any respect during the finishing point of the project.

Then, we would like to acknowledge the help and moral support of the staff members of Office of Mobilink in providing us with all the appropriate material that could be gathered for the completion of our project. Although this is the first step in the promising field of understanding the marketing mechanism, but we are confident that it will give us a jump-start in a positive direction. Hopefully, our efforts will be duly regarded and appreciated.

 

 

 

 

 

Executive Summary

In this report we analyze the company of Mobilink. Mobilink started operations in 1994 as the first GSM cellular Mobile service in Pakistan by MOTOROLA Inc. In 2001 Mobilink was the first company who introduce free incoming calls and sms packages. In 2002 UFONE joined as a competitor of Mobilink. In 2005 Telenor and Warid also joined Mobilink as a competitor but Mobilink remained the leader of telecommunication sector. In 2006-2008, 10-20 millions customers joined Mobilink Network. In this report we discuss the marketing mix which is four P’s. We also discuss about the Product service. Mobilink Indigo, Mobilink Jazz, Mobilink World, Mobilink PCO. And we focused on Jazz. Jazz offering different Packages, like Jazz Budget, Jazz Octane, Jazz Ladies first, Jazz Easy, Jazz Share, Jazz Load, Jazz Advance. Mobilink Competitive strategy is being the market leader; first, Mobilink must find ways to expand total market demand. Second, it must protect its current market share through good defensive and offensive actions. Third, it has to try to increase its market share, even if the market size remains constant. Mobilink Also do the social responsibility program like Mobilink Supports IDPs, Expansion of SMS-based Literacy Initiative, Expansion of SMS-based Literacy Initiative.

 

Introduction

Mobilink, a subsidiary of the Orascom Telecom Holding, is Pakistan’s leading cellular and Blackberry service provider. With more than 31.6 million subscribers, Mobilink maintains market leadership through cutting-edge, integrated technology, the strongest brands and the largest portfolio of value added services in the industry, a broadband carrier division providing next generation internet technology as well as the country’s largest voice and data network with over 8,000 cell sites.

Mobilink, a subsidiary of the Orascom Telecom Holding, is Pakistan’s leading cellular and Blackberry service provider. With more than 31.6 million subscribers, Mobilink maintains market leadership through cutting-edge, integrated technology, the strongest brands and the largest portfolio of value added services in the industry, a broadband carrier division providing next generation internet technology as well as the country’s largest voice and data network with over 8,000 cell sites. Housing Pakistan’s largest distribution and contact centre networks and an unparalleled 6,500 kilometers fiber optic backbone, Mobilink has already invested over US $3.3 billion in the country to date and provides uninterrupted countrywide connectivity, unmatched customer services and international roaming in over 140 countries. The company is also the official cellular partner of the Pakistan Cricket Board. As a responsible corporate citizen, Mobilink also offers a range of socially inclusive products and services dedicated to enhance access to information. Through Mobilink Foundation, the company supports education, health and environmental initiatives and promotes sustainable business practices.

Mobilink offers exclusively designed tariff plans that cater to the communication needs of a diverse group of people, from individuals to businessmen to corporate and multinationals. To achieve this objective, we offer both postpaid (Indigo) and prepaid (JAZZ) solutions to our customers. Compared to our competitors, both the postpaid (Indigo) and prepaid (JAZZ) brands are the largest brands of their kind in the Pakistan cellular industry.

In addition to providing advanced voice communication services that makes the lives of millions that much easy, we also offer a host of value-added-services to our prized customers. At the same time, Mobilink places high importance to its coverage, which is why we cover you in 10,000+ cities and towns nationwide as well as over 140 countries on international roaming service. In other words, we speak your language, everywhere.

Mobilink Profile

Company Structure

Private Limited

Genre

Subsidiary

Parent

Orascom Telecom Egypt

Owner

Naguib Sawiris

Founded

1994

Founder

Motorola USA

Industry

Telecommunication

Headquarters

42 Kulsum Plaza, Blue Area, Islamabad.

Area served

5000 cities, towns, and villages across Pakistan

Revenue

250.2 million USD (3rd quarter, 2006)

Website

http://www.mobilinkgsm.com

 

Mobilink Vision Statement

“To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations”.

Mobilink Mission Statement

“To be a superior communication service company in Pakistan which provide the best value to the customers, employees, business partners and shareholders”

Goals and Objectives

  • Expand the business.
  • Provide better service to people in the field of telecommunication.
  • Retaining the role of a leading telecommunication company.
  • Attract maximum customers and satisfy them.
  • Excel in meeting customer needs.
  • Seek employee involvement, continuous improvement and enhanced performance goals.

Achievements

  • ISO 9002 Quality Management System Certification for Billing, Engineering Departments and CS Contact Center
  • Implementation of a full Intelligent Network (IN) platform from Siemens for the Prepaid platform
  • Largest Call Center in Pakistan, which is there to assist the customers 24 hours
  • Only cellular service in Pakistan to provide coverage on the M2 motorway
  • Bilateral roaming in over 100 countries around the world with true international roaming with over 300 operators across the globe
  •  First mobile operator in Pakistan to offer extensive GPRS Roaming and Black Berry roaming services

 

Marketing

Marketing mix

Marketing Mix depends on four P’s, these are discussing below:

1. Product

2. Price

3. Place

4. Promotion

Product

Mobilink offers both Pre-paid and Post-paid services. The two main products and services of mobilink are:

  • Mobilink Indigo
  • Mobilink Jazz

Mobilink also have others products like

  • Mobilink Black Berry
  • Mobilink PCO

Price

Amount of money the customers have to pay to obtain the product. Mobilink offers different packages of different call rates:

  • Jazz Budget
  • Jazz Octane
  • Jazz ladies first
  • Jazz one package
  • Happy Hour package

Place

Place includes company product availability places. Mobilink covering 10,000 plus cities, towns and villages. Sims is available over more than 700 Franchises allover Pakistan.

Promotion

Product Service

Mainly there are four product services of Mobilink with each having separate target markets and positioning.

  • Mobilink Indigo
  • Mobilink Jazz
  • Mobilink World
  • Mobilink PCO

In this Report we focus only on Mobilink Jazz.

Mobilink Jazz

Jazz is an exciting and energetic offering of Mobilink, targeting specifically those enthusiastic teenagers, middle class and the youth market of the country, wishing to enjoy freedom, fun, lower rates and a package that matches their personality.

Jazz Offerings

  • Jazz Budget
  • Jazz Octane
  • Jazz Ladies first
  • Jazz Easy
  • Jazz Share
  • Jazz Load
  • Jazz Advance

Jazz Budget

Target market is those young boys and girls who want to stay in touch with their friends and family all the time but with cheaper rates. “Happy hours” with only 0.40 /30 seconds.

Jazz Octane

Targets those customers who want to have fun in their daily life enhancing energy in their personality of youth with low SMS rates, discount rates and lower air time rates for three numbers.

Jazz Ladies First

Specifically designed for ladies (housewives) who along with their routine work want to have recipes, beauty tips, shopping discounts etc. (Also lower rates for special numbers)

Jazz Easy

Jazz Easy customers can enjoy calling at amazingly low call rates for Mobilink numbers, they also benefit tremendously from the fabulous rates to call on any other network.

 Jazz Share

An exciting new service targeting the Jazz family Members and allows them to share balance anytime, anywhere.

Jazz Advance

Targets Jazz Family Members with Additional balance benefit to help them talk some more!

Jazz Load

Jazz Load allows recharging Jazz account in variable denominations

Pricing

Mobilink is the undisputed market leader, which is why it is believed to be expensive as compare to other telecommunication service providers. Having the largest customer base in the country with the fact that its service is available in the remote areas of Pakistan as well, people rely on Mobilink services leading to the fact that Mobilink charges higher compared to its competitors.

Jazz

Jazz Budget Tariffs

Details Rates
Outgoing calls to any Mobilink number during selected Happy Hour Window * Rs. 0.40 / 30 seconds
Outgoing to 3 F&F Mobilink numbers Rs. 0.75 / 30 seconds
Outgoing calls to any Mobilink number Rs. 0.90 / 30 seconds
Outgoing calls to all mobile networks in Pakistan Rs. 1.25 / 30 seconds
Outgoing calls to all Landline numbers in Pakistan Rs. 1.25 / 30 seconds
SMS (Jazz to Mobilink) Rs. 1.0 / SMS
SMS (Jazz to other networks) Rs. 1.5 / SMS

Jazz Easy Tariffs

Details Rates
Outgoing calls to any 3 Friends & Family Mobilink numbers* Rs. 0.99 / min
Outgoing calls to any Mobilink Number Rs. 2.10 / min
Outgoing calls to all mobile networks in Pakistan Rs. 2.50 / min
Outgoing calls to all Landline numbers in Pakistan Rs. 2.50 / min
F&F Numbers Offered 3 (Three)
SMS (Jazz to Mobilink) Rs. 1.0 / SMS
SMS (Jazz to other networks) Rs. 1.5 / SMS
F&F numbers addition/modification * Rs. 15 + tax / Modification

Jazz Octane Tariffs

Details Rates
Late Night Option – All Mobilink numbers ** Rs. 0.75 / min
Outgoing Calls to any 3 F&F Mobilink numbers* Rs. 0.99 / min
Outgoing calls – Any Mobilink number Rs. 2.50 / min
Outgoing calls – To Landline numbers (inclusive of interconnect charges) Rs. 2.99 / min
Outgoing calls – Other mobile networks (inclusive of interconnect charges) Rs. 2.99 / min
SMS – to any Mobilink number *** 20 paisas / SMS
SMS – to any other network in Pakistan 50 paisas / SMS
Daily Charges Rs. 1.00

Jazz Ladies First Tariffs

Details Rates
Outgoing calls – Any Mobilink number (1st Minute) Rs. 2.50 / min
Outgoing calls – Any Mobilink number (2nd minute onwards) Rs. 1.50 / min
Outgoing calls – Any Mobilink number ( 3pm-6pm ) Rs. 1.50 / min
Outgoing calls – To Landline numbers (inclusive of interconnect charges) Rs. 2.99 / min
Outgoing calls – Other mobile networks (inclusive of interconnect charges) Rs. 2.99 / min
SMS based Value Added Services Subscription Rs. 30 / month
SMS (Push based Value Added Services) Rs. 2.00 / SMS
SMS – Any mobilink number Rs. 1.00 / SMS
SMS – Any other network Rs. 1.50 / SMS

 

Competitive Marketing Strategies

Being the market leader, first, Mobilink must find ways to expand total market demand. Second, it must protect its current market share through good defensive and offensive actions. Third, it has to try to increase its market share, even if the market size remains constant.

Management

Rashid Khan CEO of mobilink was serving Banglalink, Orascom’s arm in Bangladesh, as its CEO. He has served Mobilink from 2004 to 2006 as chief commercial officer. According to sources, Khaliq has been elevated to a senior position at the level of strategic planning of the group’s global planning and investments.

“In this moment of recession he has shown his skills to manage the sinking ship Mobilink and put it to road of success,” said one of Khan’s supporters.

“Excellent vision and knowledge of the industry with a vast experience in telecom industry,” added another.

President and CEO of Moblink Mr. Rashid Khan have been nominated for the CEO of the Year award by World Communication Awards (WCA). Mobilink Pakistan is the only Pakistani operator to feature in the nominees.

“I am honored to take over the leadership of Mobilink and to continue to grow this company” said Rashid. “Mobilink has always been a pioneer and continues to be the leading telecommunication services provider in Pakistan.

President and CEO
Rashid Khan

Chief Strategy Officer
Tariq Rashid

Vice President Sales & Distribution
Bilal Munir Sheikh

Vice President Customer Care
Irfan Akram

Vice President Corporate Affairs
Agha Qasim

Chief Technical Officer
Ramy Reyad Kamel

Vice President Marketing
Jahanzeb Taj

Chief Information Officer
Irfan Farooq

Head of Human Resources & Administration
Sadia Ahmad

Chief Financial Officer
Andis Locmelis

Head of Business Analysis and Planning
Farid Ahmed

Finance

Mobilink posted 8.7 percent year on year growth for revenues in 2010, where its revenues stood at Rs. 94.3 billion in 12 months of 2010 up from Rs. 86.8 billion during the same period previous year.

Mobilink in fourth quarter generated a total of Rs. 23.9 billion as compared to Rs. 22.5 billion, showing a 6.4 percent QoQ growth.

In its yearly financial report, Orascom reported that Mobilink managed to uplift its ARPU by 1.2 percent from Rs. 231 (a quarter ago) to Rs. 244.6 in forth quarter 2010.

According to the Full Year Earnings Release, the company’s EBITDA showed improvement with 17.8% YoY growth in local currency terms from PKR 31.7 billion in 2009 to PKR 37.3 billion in 2010. EBITDA margin improved from 36.5% in 2009 to 39.6% in 2010.

Statement said that Mobilink had 31,749,292 customers on December 31st, 2010.

Rashid Khan, President and CEO, Mobilink while commenting over the results said:

2010 has been a tough year for Pakistan. At Mobilink, our customers remained our focus. It is really their continued trust and love that has translated into positive results for us year on year.

Whether it was through launching innovative products and bundles or segmented propositions, offering unmatched reward programs, investing in our network for even better quality providing the best customer care or reaching out to the community through our flood relief efforts, Mobilink maintained an aggressive position that reaffirms our core philosophy of reshaping lives.

On other hands, Orascom (as a group) reported a fourth-quarter net loss, saying that its Algerian unit declined in 2010 due to restrictions imposed by the government.

The net loss for the quarter ended Dec. 31 was $178.8 million, compared with net income of $939.2 million in the third quarter, said Orascom Telecom

Group posted full-year net income of $743.1 million, attributable to equity holders of the parent

Mobilink Social Responsibility

Mobilink believes in playing an active role in supporting the community and social development of Pakistan. Mobilink Corporate Social Responsibility goes beyond philanthropy and donations whereby we take into full account the impact that Mobilink creates on all stakeholders and on the environment when making decisions.

Mobilink recognize that an educated, healthy society is Pakistan’s key to ensuring sustainable development and  do the best to give back to the community they operate in.

Social Responsibility Program Policy

Mobilink Flood Relief Efforts

Pakistan is encountering one of the worst natural disasters in its history in the shape of devastating floods. In this difficult time, millions of our brothers and sisters immediately need our help and support.

Together, Mobilink and Orascom Telecom has committed more than Rs. 236 million towards flood relief in addition to contributing thousands of volunteer hours. This to date is one of the largest relief initiatives from the private sector.

Mobilink has been recognized by the Overseas Investor’s Chamber of Commerce and Industries (OICCI) as top donor in flood relief amongst member companies.

Mobilink has donated prefabricated sheets worth Rs. 140 million to WHO which will be used as Health Units across Pakistan. In addition to these shelters, Mobilink with the support of Orascom Telecom Holding has committed a comprehensive relief-package, worth Rs. 85 million for the flood affecters. Additionally, over Rs. 10 million have been raised by Mobilink employees through their salaries and friends and family; SMS donations, and other private donors.

Our teams have reached more than 16,600 families in far-flung areas including the surroundings of Multan, Muzaffargarh, Nowshera, Layyah, Charsadda, Swat, Thatta, Sukkur, D.I. Khan as well as smaller towns and villages across Pakistan. We are now providing dry food rations such as flour, oil and lentils as well as non-food items including towels, kitchen utensils and hygiene kits to facilitate the rehabilitation process. We hope to further enhance these efforts with your support.

Expansion of SMS-based Literacy Initiative

Mobilink has announced the expansion of the SMS-based literacy project in partnership with United Nations Educational, Scientific and Cultural Organization (UNESCO).
Launched last year with a view to reshaping lives through connectivity, the SMS-based literacy program is a joint venture between Mobilink and UNESCO with a local NGO, Bunyad as the implementing partner.

The 5 month pilot project conducted with 250 adolescent girls in Punjab has shown a marked improvement in their skills and has managed to overcome the socio-cultural barriers traditionally associated with owning a cell phone. The President and CEO, Rashid Khan announced to expansion of the program to include another 1,000 girls to understand the impact of replicating the project on a larger scale.

In the pilot, the 250 learners received interesting and informative text messages daily in Urdu and were expected to respond. In the second part, the participants were evaluated on a periodic basis to assess gains in knowledge and learning. The program was conducted with the help of 10 teachers enlisted by Bunyad.

It was found that at the beginning of the program 57% of the girls were graded ‘C’ and only 28% of the girls managed to score an ‘A’. However, near the end of the project the situation reversed with percentage of girls receiving a ‘C’ dropped to only 11% whereas more than 60% of the girls were awarded an ‘A’.

The program teachers also report a stark improvement in the confidence of the young girls as owning a mobile phone made a difference to their sense of security.

Mobilink Supports IDPs

Mobilink has always been at the forefront in helping the community by reaching out to lend a helping hand. Holding true to this commitment it has recently supported the Internally Displaced Persons of Swat.

On June 5 2009, Mobilink established a Mobilink Camp at Kund, Nowshera to support 1,000 families, i.e. roughly 7,000 IDPs. Camp Establishment included provision of the following:

  • Shelter
  • Food
  • Health and Hygiene
  • Non Food items such as kitchen utensils,  etc
  • Water and Sanitation
  • Education and RecreationEstimated at about Rs 81 million, the project was made possible by Orascom’s continued support for this noble cause. This is the largest private sector commitment of its kind to date for IDPs relief.In line with Mobilink’s tradition of employee volunteerism, a team of Mobilink employees was personally involved in various areas of camp management, procurement of items and other requirements.During the two months that Mobilink Camp was operational it successfully and efficiently catered to all the needs of displaced families also providing support and counseling for those most affected by trauma.Some key milestones from the Camp:
    • Full capacity of 1,000 families, close to 6,000 persons, was reached on 30 June.
    • 1,009 primary school students and 127 secondary school students were enrolled in camp schools of which 56% were girls.
    • 18 births were reported
    • 2,500 recycled Mobilink school bags donated.
    • T20 World Cup matches aired.
    • Polio immunization drive took place.
    • Mobilink Foundation Torchbearers visit was conducted.

    Subsequent to the return of families we have ensured that Kund Park returns to its original condition and that facilities that were build on site are removed and grounds leveled. All remaining educational and health material have also been donated to relevant agencies in the area.

    The camp closed down on August 13 2009 following the return of IDPs to Swat as required by the Government.

    Support for IDPs through the Mobilink Camp is in addition to delivery of relief items by Mobilink to families residing in hujras, schools and dispensaries of Mardan and Swabi including far-flung villages bordering Buner.  Beginning in May, the Mobilink family has united in its efforts and donated approx. Rs. 3, 500, 000 which have allowed it to provide over 2,400 families (approx. 15,600 persons) essential relief goods.

     Mobilink Past and Current Ethical issue

    As we had anticipated, today at Mobilink, downsizing has begun with full force and things happened in a way that was never seen before in company’s history. Employees were stunned and shocked the way they were terminated.

    All these were permanent employees, who were not allowed to go to their seats either in the morning or after Jumma prayer and security was called to collect the company belongings e.g. Car keys and laptops, told us an inside source at head office. These scenes were very disturbing for other employees who now wait to be slaughtered in the same fashion.

    There were reportedly total 60 employees in today’s hit list which include one director and few managers and specialists and associates. This downsizing is going to last till October 2009 according to inside reliable sources of Pro Pakistani.

    In a communication, Mobilink’s spokesperson confirmed the terminations, and said “This is nothing unusual. Employees do often leave for a variety of reason, for instance to pursue other career prospects, or on account of feedback received from their superiors. The overall headcount of Mobilink remains more or less the same, and the vacancies will be filled in due course – indeed we encourage qualified individuals to apply against such vacancies. Mobilink will also use this opportunity to enhance competitiveness, increase efficiencies in terms of performance and eliminate redundancy”.

    There is a lot of anger and insecurity among existing employees.

    On a similar note, a VP of Mobilink is in talks with PTCL and may join the landline giant in a week or so.

    Global International business issue

    Mobilink recently became the first Pakistani company to support a global environmental initiative by a large group of international corporate leaders, the Copenhagen Communiqué, being coordinated by the University of Cambridge, UK – Program for Sustainability Leadership.

    Mobilink has signed the Copenhagen communiqué, which calls on governments to agree on an ambitious, efficient and equitable international climate framework at the final negotiation.

    The communiqué is a definitive statement to express the will of a large part of the international business community which wants a strong and effective international climate framework. The communique will be conveyed to governments around the world, through the office of the UN Secretary General Ban ki-moon.

    A strong deal in Copenhagen will provide clarity and certainty about the future direction of climate change policy, making it easier for business to plan long-term investment and create opportunities for growth in the technologies of the future.

    Countries in which Mobilink operate

    Orascom Telecom Holding S.A.E. (“Orascom Telecom”) or (“OTH”) was established in 1998 and has grown to become a major player in the telecommunication market.

    OTH is considered among the largest and most diversified network operators in the Middle East, Africa, and South Asia, and has acquired in early 2008 a license to operate mobile services in North Korea. Orascom Telecom is a leading mobile telecommunications company operating in six emerging markets having a population under license of 430 million with an average penetration of mobile telephony across all markets of approximately 40%. OTH operates GSM networks in Algeria (Djezzy), Pakistan (Mobilink), Egypt (Mobinil), Tunisia (Tunisiana), Bangladesh (Banglalink) and Zimbabwe (Telecel Zimbabwe). OTH had exceeded 74 million subscribers as of March 2008.

    Conclusion

    After the great research and paper work we are of opinion that a lot of people have shown their interest in these two Mobilink offers i.e. Postpaid & Jazz ladies first.

    The motto of the company is “Connecting People” and “Reshaping Communications”

    Mobilink is proud to be the leader in telecommunication industry.

    Recommendation

    Our view point is that as Mobilink is the largest telecommunication network in Pakistan and it has the higher market share than any other telecommunication network in Pakistan. Therefore Mobilink need to satisfy its customers and Mobilink is doing this very well by giving different tariffs. But I think that the charges of Mobilink are little higher than other competitors, as it is the age of competition there for Mobilink should have to reduce its’ charges and improve its standard of qualities more.

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