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MGT211 Introduction To Business Assignment 2 Solution Spring 2014

Introduction to Business (MGT211)
Spring, 2014
Assignment.02
Due Date: July 18, 2014
Total Marks: 10
Topic: Target Marketing and Market Segmentation

Objective

The prime objective of this activity is to how companies can do market segmentation to build the
positions of their brand in customer’s mind.

Learning outcome of the activity

After attempting this activity, the students will be able to:
1. It will give awareness to the students how companies can position their brands by
providing extra features.
2. Students will be able to identify the role of brand positioning.

Background

Market segmentation is a marketing strategy that involves dividing a broad target market into subgroups of consumers who have common needs and priorities, and then designing and implementing strategies to target them. There may be a large number of variables that can be used to differentiate consumers of a given product category. The major segments are geographic, demographic, psychographic and behavioral segmentation. In the next step, companies find a strategic fit that how to target one or more segments and what positions it want to occupy in those segments. Positioning seeks to make a unique place in the minds of the target market by appropriately designing the company’s offerings and image. In general, rightly positioning a brand would lead to the creation of a value proposition that would appeal to the needs of the target market. A brand may be positioned on the basis of an attitude or benefit, use or application, user, class, price, or level of quality. Products are made in factories but brands happen in the minds of consumers.

Case study

Pakistan Mobile Communications Limited (PMCL) better known as Mobilink GSM is a telecommunication service provider in Pakistan; it has become the market leader both in terms of growth as well as having the largest customer subscriber base in Pakistan. Mobilink’s target market varies with its different product lines e.g. the Mobilink Indigo brand mainly targets the corporate sector of the Pakistani community. Indigo connection provides you with state of the art facilities that let you conduct business on the go. Indigo makes sure that you can make timely and informed business decisions; on the other hand Mobilink jazz is an exciting and energetic offering of Mobilink, targeting specifically those enthusiastic teenagers, middle class and the youth market of the country who wishes to enjoy freedom, fun, lower rates and a package that matches their personality. The growth has been further strengthened with brand building activities telecomm

Requirement:

Keeping in view the aforementioned background and case you are supposed to conduct positioning analysis on the basis of price and service quality of Mobilink against its competitors?
(Telenor,, Warid, Ufone and Zong) in this positioning mmap?

Important Instruction: Firstly you need to place the Mobilink in the matrix relative to its competitors and then provide a detailed description to support  your argument a  the positioning map given

 Solution:

Competitive Enviroment Of Mobilink Telenor Marketing Essay

At the achievement of 100 million customers PTA has released interesting figures. A very obvious trend shows enormous growth of mobile density. Mobilink, Telenor and Ufone are currently giving each other a tough challenge, Warid and Zong are also increasing their market share and in upcoming days the overall cellular environment will be facing more challenges.

Though existing mobile operators are using aggressive and innovative methods of marketing to increase the consumer count, the issue faced is the rivalry. The competition between the stakeholders is also challenged by the newer investments making it essential for old players to know their methodologies and to preserve their market share. Mobilink is a prime example of companies facing this challenge. A large number of users were gained by aggressive strategies of Telenor and that helped Telenor to establish in a lesser period. However, next inline challenge for any giants is to retain what they have gained and always keep their strategies aligned with new methods of marketing.

1.2 SCOPE OF THE PROJECT:

The major scope of my thesis is to analyze Telenor and Mobilink telecommunication companies on following three aspects, organizational standards/policies, competitive behaviors and the customer behaviors. I have analyzed their business and marketing strategies by examining their advertisement war and marketing tactics.

1.3 RESEARCH METHODOLOGY:

I have used the following research methodologies in writing this thesis:

Going through Mobilink and Telenor websites.

Collected information from Mobilink and Telenor Employees.

Obtained research papers from Mobilink and Telenor.

LITERATURE REVIEW

2.1 TELECOMMUNICATION SECTOR IN PAKISTAN:

Marketers are foreseeing promising potential in future growth in the telecommunication industry on the basis of the previous 5 years that have shown a rapid and enormous growth in this sector. Government of Pakistan is taking serious interest in the expansion of this industry and funding for the growth and it has a firm belief that this sector will provide quality services to the general public of this country.

2.2 SWOT Analysis:

SWOT is basically a method to evaluate an organization’s environment. It stands for Strengths, Weaknesses, Opportunities and Threats. It is widely used by the marketers to do an investigation on key issues exist in an organization. It divides the aspects in two halves; one is the external aspect that covers up the opportunities and threats, while the internal aspects are the strengths and weaknesses of a business. It is quite easy to adopt and it helps in identifying the main apprehensions and tries to infuse their remedies in the marketing objectives.

2.2.1 Strengths:

Strengths are the attributes that adds up value to a company and make it stand out among other because of the customer’s positive attitude towards those attributes. Strengths include the specialties in marketing tactics, new and innovative products and services, quality of their internal and external processes, and the market value of that business venture.

2.2.2 Weaknesses:

Weaknesses are the negative attributes of a business and it majorly indicates the loose holes in marking techniques. It also indicates the poorly managed internal and external processes, bad management, bad fame because of low quality products and services and lack of innovative ideas.

2.2.3 Opportunities:

Opportunities can be best illustrate as the new options that can make a business more strong and open up ways to grab new markets by the use of new technologies, market trends, or by implementing innovative ideas for earning huge revenue and strengthening the business’s position in the competitive market.

2.2.4 Threats:

Threats are the upcoming disasters that can make a business’s position fragile in the market place. These can be the lower prices offered by a competitor, better and innovative products and services offered by a competitor, new rival emerging in the market, etc.

2.3 MARKETING MIX:

Marketing Mix are 4P’s of marketing study, which includes product, place, promotion and price but for the industry of services, it is taken up to the next level that embraces physical evidence, process and people. This concept gives the marketing professionals the flexibility to alter the current offers they have for their customers and make new innovative offers by manipulating these 7P’s.

2.4 CONSUMER BEHAVIOR:

For any business, the behavior of the customers and their buying patterns are of great importance. A customer buying behavior is precisely classified in the following four aspects. This classification helps in creating new products and services and identifying potential customer. The first and foremost aspect is the Cultural background of the customer that includes it’s attitude and thinking directions that roots down to the core values its family and society make up of. Another aspect is the Social factors that strongly reflect in its choices and decisions; it is basically about the social environment it possesses because it truly affects a person’s mind set. Third aspect is about the Personal Characteristics that includes the social and economic status, personality, age group and intrinsic uniqueness. Last but not the least aspect is about the psychological Characteristics that comprises of the insights, motivation and way of approaching towards different things. All of the above factors influence the decision making of a buyer.

2.5 CONSUMER BUYING DECISION PROCESS:

Marketing professionals use different tactics to study the purchaser’s mind and make strategies to use this information in improving the sales of their products or services. There are several things that are running up in the purchaser’s mind at the time of purchasing; these things are the information available to the purchaser, the alternatives, acknowledgement and his personal preferences.

2.6 SEGMENTATION:

The identification of purchasers in a market place who owns similar necessities and acquires identical manners is called as segmentation.

2.7 TARGETING:

After the completion of segmentation, marketing professionals picks up a segment of market place to keep it in focus.

2.8 MARKET COVERAGE APPROACH:

Organizations put together their planned strategies to attain specific targets and mile stones and as the time passes by, these planned strategies are altered by keeping in mind the growing needs of in-focused markets. The in-focused market is a deposit of purchasers who have recognizable needs and these needs are recognized by companies to offer new products and services for benefiting the market. There is an approach called as market converge approach that facilitates an organization to construct the right strategy for its in-focused market. We can divide the market converge strategies into three broad categories:

Undifferentiated strategy: this strategy states that a company provides undifferentiated products to customers at lower cost after identifying their needs.

Differentiated strategy: this strategy states that a company provides a product that is profitable and full fills the need of a certain segment of market. The product is actually differentiated on certain factors that include its features, prices and availability but the quality of the product should be maintained at a reasonable level.

2.9 POSITIONING:

Positing is about valuing a product’s position within the market and it is done after segmentation and aiming a customer class. Positing depends on the perception of the person who is evaluating a product’s position and it always varies and so does its results.

MOBILINK

3 INTRODUCTION OF MOBILINK

Mobilink has started its operation being the subsidiary of Orascom Telecom .Currently is the market giant in Pakistan Telecommunication industry because of having the leading number of subscribers which exceeds 31 million and it’s still increasing day by day. Mobilink is a market ruler in terms of its expansion. Mobilink is so delighted on taking initiative as a cellular service provider. Mobilink is the so delighted to provide high-tech telecommunication solutions to its privileged customers nationwide.

Mobilink puts forward exclusive and specially designed packages to its customer’s nation wide having diverse needs, it includes all type of subscribers like individuals, business personals, and corporate tariff plans. Mobilink offers Postpaid and prepaid tariff plans to its privileged subscribers. These solutions are competitive and balanced packages in the current fierce market competition. It also offers various Value Added Services. Mobilink’s strongest point is it’s far and wide coverage that covers 9000 regions and localities inside the country and over 130 other countries worldwide for international roaming services.

3.1 Products

Mobilink is offering two different types of tariff plans, one is Jazz that is offered to the masses of the society of all classes and it is better for keeping control on cellular expenses. Prepaid service has so many different packages for different type of users. While, the other service that is Indigo is for society that can afford to pay monthly bills. It has a wide range of packages for different type of users and they are based on the level of usage of the service.

3.2 Value Added Services

Info Services Home

SMS Translator

Call / SMS Blocking

Power Tools Info Services

Reverse Auction

SMS Filter

SIM & NIC Services

Package Info Service

SMS Search

Islamic Portal

Holy Sayings

Kisan Service

My PowerTools

3.3 Sales Tactics

Mobilink also led the way up for opening up franchises nationwide and it has over 500 franchises which provide different services to its customers. Mobilink has over 800 sub dealers too that help it in expanding its network and quality services. The basic idea behind opening up a franchise is to provide help to its customers that are encountering any issues or problems in the communication service. Franchises also provide facilities for bill payments, sales, etc. Mobilink has hired proficient personnel who are dedicating working for providing help and support to Mobilink’s privileged subscribers.

3.5 Mobilink Core capability:

Research and development is always a core competency for every service providing organization that wants to compete in the fierce market war and Mobilink has it all as well as its employees. Mobilink takes pride in its hardworking and proficient professionals that makes it a market leader by dedicatedly working for its growth and integrity. The research and development department always takes part in launching new products and services for the sake of its customer and Mobilink knows who to keep its customers bind and pleased. It launches innovative products and services to the market that adds up its value, like the recently launched Jazz Jazba.

3.7 Business Strategies at Mobilink

There are three most important functioning strategies:

Commercial Strategy

Production Strategy

Operational Strategy

Commercial Strategy

Commercial strategy focuses on the overall range of products and services which actually in total encompasses the company’s product line, different methods and processes through which a company interrelate its products to its business. Early mobilink only focused on its internal expansion but due to increase in competition they have changed their strategy and now working with other telecomm companies for example Mobilink started to work with Citi bank, Atlas Bank and KASB for the online bill payment system.

Production Strategy

Mobilink production strategy focuses on putting together its profitable products hence maintaining and strengthening its business position which will also benefit them in the long term. To continue its production Mobilink has always worked with its research and development department to distinguish its product from other competitors on the basis of network simplicity, as compare to its competitors. Mobilink has created their product and services unique through:

Promotion/Advertisements

Mobilink have an enormously impressive marketing team who designs and promotes its packages and services by keeping in mind the variations in consumer behavior of customers.

Mobilink has been advertising and promoting its offerings through different media like Electronic media. Promoting its new products through Print Media like glossy magazine, tabloids and Billboards. They have nominated different sportsmen and celebrities as their brand ambassador.

3.9 Operational Strategy

As the cellular companies continue to launch new services and products, they are implementing new and innovative strategies to beat their competitors. Most of the companies has started to focus on low cost strategy, by offering cheaper rates they comprise on service quality, on the other hand Mobilink stands firm on its quality service strategy, they don’t comprise on quality at all, this is also the reason that its rates are on higher side but its loyal customers understand and appreciate Mobilinks efforts to maintain the quality management hence they don’t switch to other companies.

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