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12

Week

5 – First element of assignment (Formative)

Student details: –

Name: Sana Ullah

Student ID# 18150003

Module: Leadership development (MAN 7066)

Selected Organization: Mobilink, Mobile telecommunication limited, a mobile operator multinational company in Pakistan

.

PROFILE: – Mobilink (formerly known as Jazz) is a multinational mobile operator company in Pakistan. The head office of the the company is based in the city of Islamabad, Pakistan. The company is founded in 1994, and working in the sector of telecommunication. It is serving more than 2000 cities, towns and villages across the county with 2300 numbers of employees. The company has posted Rs. 101.7 billion in revenue for the first half of 2019, up by 22% from Rs. 82.4 billion during the same period last year.

Mobilink Hierarchy (Organizational Chart)

Marketing Problem of Mobilink:
After introduction and Hierarchy, Now it’s time to discuss the challenges and issues that Mobilink facing. In this current situation Mobilink is now facing problems, first of all in the customer satisfaction area because as Mobilink sold over capacity connections in the market already. Secondly with the entry of new market players, Telenor and Ufone (Competitors) there is a tough marketing war is going on and how to target the new potential customers as well as satisfying existing one to retain its market position.

I would like to work with these issues and apply strategies to overcome these challenges.

WEEK-7
ABSTARCT: –

Every organization, whether it is a multinational, private business, government offices, etc. depend on its people. These people with working as leadership or management must be trained and kept motivated, offered good working environment and must be acknowledged at work.

Telecom industry is growing in Pakistan, with new companies getting license the competition is tough as a result the consumer is getting benefit and enjoying cheap call rates. With a huge population of users, telecom is one of the best revenue generated industry. As voice over IP, web conferencing and online video sessions are becoming popular these companies have bright future ahead.

Mobilink GSM, a subsidiary of Orascom Telecom, started its operations in 1994, and 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 28 million and growing. Mobilink prides 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 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 2000+ cities and towns nationwide as well as over 120 countries on international roaming service. In other words, we speak your language, everywhere. The company has a total number of 23,00 employees, and it has posted Rs 101.7 Billion in revenue for the first half of 2019.

.

MISSION

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

VISION

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

VALUES

Commitment to Total Customer Satisfaction:

Customers are at the heart of our success. They have placed their trust and confidence in us. In return, we strive to anticipate their needs and deliver service, quality and value beyond their expectations.

Passion for Business Excellence:

We strive for excellence in all that we do. We aspire to the highest standards and raise the bar for ourselves every day. This commitment to delivering world-class quality translates into unmatched service and value for our customers and all stakeholders.

Trust & Integrity:

At Mobilink, we take pride in practicing the highest ethical standards in an open and honest environment, and by honoring our commitments. We take personal responsibility for our actions, and treat everyone fairly, and with trust and respect.

Respect for People:

Our relationships drive our business. We respect and esteem our employees and all stakeholders.

We believe in teamwork, empowerment and honor.

Responsible Corporate Citizen:

As the market leader, we recognize and fulfil our responsibility towards our country and the environment we operate in. We contribute to worthy causes and are dedicated to the development and progress of the society.

PRODUCTS

Mobilink offers both Pre-paid and Post-paid services.

They 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, they offer both postpaid (Indigo) and the prepaid (JAZZ) services to their customers.

Jazz is an amazing prepaid service that allows freedom from monthly bills and gives complete control over the customer’s cellular expenditure. The user can decide in advance when and how much he wants to spend. He can load a scratch card whenever he wants to and start talking. Jazz is simple, easy and loads of fun. not only Indigo and jazz mobilink have 13 more products given below,

1.

Mobilink Indigo

6.

Mobilink TV

11.

PIA Reservations

2.

Mobilink Jazz

7.

Mobilink Game ON

12.

Stock Watch

3.

Mobilink BlackBerry

8.

Jazz Cricket SIM

13.

Fax Mail

4.

Mobilink PCO

9.

Conference Bridge

14.

Corporate SMS

5.

Mobilink WiMAX

10.

PSO Cards

15.

SMS Advertiser

In addition to providing advanced voice communication services, Mobilink also offers a number of value added services to their valued subscribers.

MARKET SHARE

As of May 2019, PMCL (Jazz) held largest market share in Pakistan with 36.98 percent of mobile subscribers in Pakistan, followed by Telenor with 27.65 percent.

CORPORATE SOCIAL RESPONSIBILITY:

Mobilink Foundation:

Mobilink Foundation was established in December 2007 it reflects the commitment of Mobilink and its employees to benefit the community. The Mobilink Foundation is a grant-giving organization, which provides support for the local community not only financially but also through dedicated volunteer hours. Volunteers are their best asset and by aligning their efforts with those of the Foundation Mobilink enable the Mobilink Foundation to meet its objectives in a united way.

1) Health and Education

2) Trochbearers

Mission statement “Our vision is free access to education for children and primary healthcare for all Pakistanis.”

MAJOR PROBLEMS WITH MOBILINK

1) HIGH PRICING

Although Mobilink is covering whole Pakistan but its call rates are high and network quality is poor. These are the two major issues which brought Mobilink’s market share down to 36.87% in 2019 from 36.92% in previous year.

2) ADVERTISING & MARKETNG

Fewer advertisements now days shows that Mobilink is taking out its investment from marketing &its advertising is not active up to the mark. However, if we compare it with Telenor, Zong and Warid we’ll realize that they are heavily marketing their products.

3) POOR NETWROK & BAD QUALITY OF SERVICES

Mobilink’s network mostly remains busy in thickly populated cities such as Karachi, Lahore and Multan so people face a lot of difficulty while trying to connect to their friends and families. Even in few areas there is still no coverage of 3G/4G Mobile internet service. However, Telenor network provides crystal clear voice quality so many of Mobilink’s customers (including me) have shifted to Telenor.

RECOMMENDATIONs: –

· PRICING STRATEGY

Pricing strategy plays a very important role for a share in a market where competitors giant is already working and moving forward. Mobilink must implement low pricing strategies to reach their goals in this tough game of competition. Pakistan population mostly contains the middle class and working class people. In this view of low pricing strategy for Mobilink can get the attention of many customers. Mobilink have to use dynamic pricing strategy and market penetration pricing strategy to meet the needs of its customers and to face competitors. ARPU (Average Revenue Per User) starts from around Rs. 232 in 2019, however, average MBs used per month per user almost doubled from 464 MBs per user per month to 821 MBs per user month. On the other hand, Telenor and Ufone offering 2000 MBs of Data at just Rs. 150. In Tariff comparison, Telenor is charging R.s 1 per minute, while Mobilink is charging Rs. 1.50 per minute. With current pricing policy Mobilink is losing its customer attraction from both sides, existing customers and as well as new potential customers. The shocking fact is company has reduced its operating expenses by 5%, while they are following the revenue generating by 6% for last 2 years, and that’s become the reason of high pricing of its products.

Customer complaint recovery system is too slow, Mobilink has categorized its customers in different segments:

Segment 1 (Bronze I, II, New Users)

Segment 2 (Silver)

Segment 3 (Gold I, II, Platinum)

According to this segmentation, the customers who belong to Gold/Platinum can get urgent assistance regarding to any service issue within a day, Silver users will get help from 1-2 days, while the Bronze users will have to wait for 1-5 days to resolve their problems. Whereas, fact is the most number of users are belonging to Bronze, Silver and then Gold respectively. Mobilink should direct segments to different teams of technical support that will provide equal assistance to all users at a time. They need to categorize their technical support teams as well to cop better with customer’s problems.

Mobilink can lower its call rates, SIM charges, Mobitune charges, GPRS charges and other extra charges in order to capture a larger market to make business difficult for rival companies. In this way it can segment a larger market and may capture the customers of low income group as well.

· ADVERTISEMENT & MARKETING

Through proper advertisement also Mobilink can target as many customers as it can in order to augment and give support to its falling market share.

Mobilink can develop a stronger market by focusing on segments such as teenagers, adults, office workers, girls and ladies as well as old people by offering innovative packages.

These packages could be offered keeping in view the time consideration as well as pocket of each segment. These packages could be at low cost for teenagers and grand parents as their pocket is small but could be little expensive for the rest.

Moreover, Company should adopt proper advertisement and marketing channels. Social media (Facebook, YouTube, Instagram, Twitter etc.) is biggest tool to attract new customers and a way to improve company sales and revenues, even these channels provide excellent marketing and advertisement facilities at cheaper price with high speed to specific targeted group of people.

Pakistan is an Islamic country with strong culture background, people celebrate their religious and cultural festivals warmly and regularly, even there are many national celebrations as well where people, especially youth are being seen participating actively. By these occasions, Mobilink can run advertisement and marketing campaigns to attract more and more customers. Mobilink should also sponsor these events with its official Logo. Another efficient way to attract new potential customers is to sponsor sports events nationally and internationally, as cricket is being most favorite sports of the nation.

SMS and Email marketing is also a better tool used by different telecom companies to promote their business and get more and more customers.

· POOR NETWROK & BAD QUALITY OF SERVICES

Mobilink is the largest mobile telecom operator in Pakistan in terms of market share and users, but it has been fined by government for its bad services. It may be a big question mark of its quality and being a good player in competition among others. Due to heavy traffic of users, users often face network issue to use services properly. There are still some areas in province of Baluchistan and Khyber Pakhtunkhwa that are fully out of coverage, in those area few locations are well populated and people using mobile phone operating services. Even in thickly populated cities like Karachi, Lahore, Multan and Faisalabad people face a lot of difficulty while trying to connect to their family and friends

Mobilink’s network mostly remains busy in thickly populated cities such as Karachi, Lahore and Multan so people face a lot of difficulty while trying to connect to their friends and families. However, Ufone’s network provides crystal clear voice quality so many of Mobilink’s customers (including me) have shifted to Ufone.

Mobilink has been fined twice by Pakistan Telecommunication Authority over its bad service. It must try and emphasize on providing better services to its customers instead on concentrating only on expansion.

Mobilink must use Frequent advancements in telecommunications technology, means Mobilink must well prepare for shorter and shorter upgrade cycles to bring the latest technology to its users.

Mobilink must also continually increase their networks’ capacities to handle more traffic, particularly due to today’s demand for data in both existing and potential markets. These expenses will convert in revenue as new potential customers will join the network.

Mobilink must maintain telecom inventory

 consists of all the hardware, propriety and licensed software, phones and digital assets a business uses to conduct daily communications. In total, that telecom inventory for the average company today might incorporate many of the following:

· Wireline phones and devices

· Wireless phone, smartphones and devices

·

Voice over internet phones

· Software licenses

· Telecommunications network hardware

· Network surveillance and entry technology

· On-premise, hosted or hybrid cloud services

REFERENCES

· https://www.statista.com

· https://www.pta.gov.pk/

(Pakistan Telecommunication Authority, Published Data)

· https://www.jazz.com.pk/

(Official Website of Mobilink Jazz, Published Data)

· www.scribd.com (Articles and Blogs)

· https://www.infopulse.com

· https://www.propakistani.pk

· https://www.phoneworld.com.pk/

CHIEF EXECUTIVE OFFICER

Chief HR Chief Technical

Head of Marketing

Director Brands

Senior Manager

Managers

Assistant Managers

Chief Commercial Chief Financial

Director Internet Director Pricing

LITERATURE REVIEW OF MOBILINK (WEEK-9)

INTRODUCTION:

For every individual cellular service has become a need, to contact with their relatives, family, friends and with the business people. In Pakistan, there are many cellular companies which offer prepaid and postpaid services. The satisfaction level of cellular services customer’s changes with their expectations. This can also be co-related with the potential of services a cellular company can offer to its customers.

In 1962 Telecommunication developed for the first time in Pakistan. In 1991 there was only one Telecommunication provider company which was working by the name of Pakistan Telecommunication Company Limited (PTCL). But in 1994 the situation changed because Multi-national companies started business in Pakistan and launched 1st cellular services “global system for mobile communications (GSM)”

in different cities of Pakistan, by then the services charges of the Network and prices of mobile set was very much high. Only people with good resources can afford cellular services facilities. Cellular services usage had become a sign of richness. In 2001 PTCL established a new cellular service company by the name of U-fone. By now, five major companies Mobilink, Telenor, Ufone, Warid and Zong are operating in Pakistan. Mobilink started its operation in Pakistan in 1994. Mobilink was first cellular service provider to operate on hundred percent digital GSM technology in Pakistan. Mobilink entered first and High market share and market growth, that’s why Mobilink became market leader in mobile companies in Pakistan. Today Mobilink is leading with 36 million subscribers.

In National Economy, according to Pakistan Telecommunication Authority (PTA), Telecom sector is considered as one of the developed sectors. It injected Rs 467 billion into national economy in the year 2018. As compared to last year, it showed 6.4% increase. Pakistan is having good position in Internet and cellular field. Latest statistics released by the PTA showed that registered cellular subscriptions have reached to 150.1+ million till 2019.

Companies learn and take experience when they come in interaction with unhappy & unsatisfied customers. According to Muzammil Hanif Sehrish Hafeez (2010) any cellular company who wants to maintain long term relationship with customers, it is possible only when they satisfy them in first instant, so it is important for a company to concentrate on the affecting factors. This paper is showing few variables which influence and should to be paid much attention which are affecting customers’ satisfaction.

Background of the Study:

In Pakistan, from past few years’ mobile communication has emerged as a fast growing industry. Pakistan is considered one of progressive country of the world in which Mobile phone subscribers has increased over 150 million. That’s the reason that many foreign companies are interested to investing this sector. Telephone & Telegraph (T&T) department provided telecom services for the first time in Pakistan. T&T department was run by the Government. T&T department was later merged into a Corporation. The corporation earned huge profits from its services. Corporation policy was to re-invest the profits in the market to expand its market base by providing more & more telecom services.

Statement of the Problem:

Mobile Communication Network has showed rapid growth in Pakistan and now it is considered one of the important sectors of economy from different prospective like foreign investment & economic growth. But interesting and important thing is that still cellular networks have not yet satisfied their customers due to low performance of services. They having high market share but these companies are unable to satisfy their customers.

Objective of the Study:

0. The main objective of the research is to identify those factors which are used into customer’s satisfaction in mobile communication.

0. Find out the relationship b/w mobile communication & quality of services.

0. Find out best marketing and advertisement tools to attract potential customers.

Customer Satisfaction:

Satisfaction defined and explained by different researchers in different ways and previous Researchers have given special importance to customer’s satisfaction. It can be defined satisfaction whether it may relate to cellular industries or others industries. “Satisfaction is a feature or characteristic that can full either a need or want of customer in better way than competitors”. Hanif et al (2010) whenever one company is providing a

product

or service. If the product or services according to requirement of the consumer, the consumer will get satisfaction the high will be quality of product brand, the high will be satisfaction of the consumers. (Gerpott el at, 2001) in coming future time, the company having chances to make more profit by keeping their customers satisfied. Hauser el at (1994) If the company wants to retain the consumers they should to satisfy them. Guo el at (2009) The Company unsatisfied customers quickly switched to other brands. Henkel et al. (2006) found that satisfied customer have high extent of usage and chances to repurchase in future.

In the words of (Rust and Zahorik, 1993), Customers Satisfaction has become a corporate level strategy for business. Many researcher and authors have discussed the importance of customer satisfaction in their own words. According to Drucker (1973) which stated that customer satisfaction is to be considered the base of success for any business. For the relationship b/w marketing and management customer satisfaction is corner stone (Claycomb & Martin, 2002), and for sort of organization customer satisfaction become a competitive advantage (Anderson et al.,1994).

According to Anderson, Fornell, and Lehmann, 1994Satisfaction is a person pleasure or disappoint feeling about a product resulting from comparing the product performance with actual and with the expectation.

In telecom sector satisfied customers have high usage of extent and having the possibility to repurchase in future again. Greater the satisfaction level the more will be chances of repurchasing by customers (Iqbal et al. 2008), and reduce customer whip (Henkel et al, 2006; Serenko & Turel, 2004).

Iqbal et al. (2008) also found that satisfied customer can pursue others to use the services provider.

Kim et al. (2004) found that customers’ satisfaction leads them to use current service and creates loyal customers for future. The customers who are loyal reported to produce higher retention rates, tend to commit a higher contribution of their category spending for the

firm

, and are more likely to pursue others to be a part of customers of the firm. (Zeithaml, 2000, Keiningham, et al. 2007)

Melisidou & Theocharis (n.d.) found that those customers which are satisfied from any cellular network, they don’t stay only as customer but also they are the creators of organization’s new business as well. Loyal & satisfied customers become a higher source margins for organization.

Customer Services:

User do not expect the company to be perfect, customers always do expect from company to fix things when going wrong. (Gronroos. 1984).it is responsibilities of the services provider staff to communicate everything with customers clearly and also the responsibility to solve the problem of customers what they are facing. The staff having also the responsibility to inform their customer from the company new services. Which are lunched by the company (Jawaria el at, (2009). For every business customer loyalty firm should provide good quality customer services (Han, 2009).

One of many reasons for your enhancement of network-services quality is actually of which clients be able to get into your company’s internet site through distinct locations worldwide as well as is able to assess your company’s assistance with other people company’s giving. Consequently, on-line customers’ expectancy is actually greater than traditional clients. Croninet al. (2000) found in which support good quality, support worth, and also full satisfaction are extremely straight away to customer’s objectives involving consumption. (Omachanuet al. 2008) explained that the Quality experienced a long phrase influence on the actual fulfillment of consumers.

Kim et al. (2004) indicated that network services including call quality and customer support participate a key role in constructing customer satisfaction for telecom services provider and then the satisfied customer become the loyal customer for the current services provider. (Baumannet al. 2006) expressed that satisfied customer become a corridor for other users to use that services from which they are satisfied.

Network Services:

According to Parasuraman et al. (1988), Aydin and Özer (2005), Ismail et al. (2006), A high and good service is a key factor to compete in the services market. Services provider firms give more attention to quality services because it has direct impact on customer satisfaction. Every customer having different expectation from the services provider firm when they get more and better services the customer may become satisfied and trust of the customer built on the services provider too. Evaluation of the performance services firm quality services is a key factor in the telecommunication.

Retailer Services:

Retailer purchased products or goods directly or through a whole sealer from manufacturers or importers and then it sells these products in small quantities to the end user. Retailer is considered the end of the supply chain. Retailer sale the merchandise to very fixed location, like department store, or by mail.

MARKETING PLAN OF MOBILINK:

Marketing strategy

Mobilink is currently working on market oriented strategy. There are two main function on which mobilink is currently enormously focusing.

1. Cost management.

2. Quality of services.

Mobilink has been successfully built a superior relationship with their customers including consumers and corporate. Mobilink is completely focusing on the need and wants of their consumers and providing them all their needs according to their desires.

Especially mobilink has a largest customer care center than other service providers. Mobink has 3 mainly customer service centers, and the difference is showed with the statistics which is given below;

100000 calls per day

20000 customers connected with customer services representative (CSR)

250-300 calls attended by one CSR in 8 hours including break.

Mobilink has largest call centers in Pakistan.

Product strategy

Product Strategy is perhaps the most important function of a company. It must take in account the capabilities in terms of engineering, of production, of distribution (sales) existing in the company or of time to acquire them (by hiring or by mergers). It must evaluate the customer’s expectations at the time of delivery. It must guestimate the   competition (including new entrants) probable moves to enter the same market.

A product strategy in which a firm maintains an even combination of new, growing and mature products and also keeping in mind

Product Life Cycle

.

“Mobilink is focusing on quality products not the variety of product under a brand”

While other cellular service providers are claiming that they are come up with variety of products for the customers. But customer wants the quality not the variety.

Promotion strategy

Though there are a lot of communication objectives of the of the organizations but as the mobilink is concerned, Mobilink overall objective of the communication of the brand is to retain the customers that people shouldn’t forget about their brand, mobilink is still alive in the telecommunication sector.

Second communication objective of mobilink is to create awareness that is mobilink is the largest network in Pakistan.

What mobilink says?

“Where the all networks get jammed, the only mobilink connects you”.

Mobilink is using different promotional mix like;

· Advertisement

· Personal selling

· Sales Promotion

· Direct Marketing

· Publicity

In advertising Mobilink is communicating there positioning and promotional campaign about their brands. Different objectives are concerns with different promotional mix. In personal selling Mobilink is selling Mobilink indigo, Mobilink PCO, and Blackberry. Although the personal selling is two way communications so the mobilink is communicating the features and the value added services of the mobilink. These products actually need information by the customers so the mobilink is using this personal selling campaign for its products.

References:

· Muzammil Hanif Sehrish Hafeez, Adnan Riaz (2010), “Factors effecting customer satisfaction”,

· International Research Journal of Finance and Economics Issue 60, 44-51.

· Jawaria F.A., Imran Ali, Waseemullah, Ishfaq Ahmed, Muhammad Akram (2009), “Determinants of Consumer Retention in Cellular Industry of Pakistan, Proceedings 2nd CBRC, Lahore, Pakistan.

· Gerpott, T. J., Rams, W., & Schindler, A. (2001) Customer retention, loyalty, and satisfaction in the German mobile-cellular telecommunications market Telecommunications Policy, 25, 249-269.

·

Guo, L., Xiao, J. J., & Tang, C. (2009). Understanding the psychological process underlying customer satisfactionand retention in a relational service. Journal of Business Research, 62, 1152.1159

· Henkel, D. Houchaime, N. Locatelli, N. Singh, S. Zeithaml, V.A. and Bittner The Impact of Emerging WLANs on Incumbent Cellular Service Providers in the U.S. M.J. Services marketing, McGraw-Hill Singapore, (2006)

· Rust, R. T., & Zahorik, A. J. (1993). Customer Satisfaction, Customer Retention and Market Share, Journal ofretailing, 69 (2), 193-215.

· Claycomb, C. and Martin, C.L. (2002), Building customer relationships: an inventory of service provider s objectives and practices, Journal of Services Marketing, Vol. 16 No. 7, pp.615-35.

· Anderson, E. W., Fornell, C. and Lehmann, D. R.(1994) “Customer Satisfaction, Market Share and Profitability: Findings from Sweden,” Journal of Marketing, 58(3), 5366.

· Melisidou S. & Theocharis N. (n.d.), Service quality, customer satisfaction and customer retention in the hospitality industry: keys to achieve tourism growth, Retrieved Feb 02,2010, from

http://era.teipir.gr/era2/fullpap/B59

· Gronroos. (1984). A service quality model and its marketing implications. Journal of the Academy of Marketing Science, 24(Winter), 36 – 44.

· Cronin Jr JJ, Taylor SA. Measuring service quality: A reexamination and extention. Journal of Marketing

1992;56(July):55 68.

· Parasuraman, A., Zeithamal, A. V., & Berry, L. L. (1988).SERVQUAL: Amultiple-item Scale for measuring consumer perceptions of service quality. Journal of Retailing, 12-40.

· Aydin, S., & Özer, G. (2005). The analysis of antecedents of customer loyalty in the Turkish mobile telecommunication Market. European Journal of Marketing, 910-925.