Case study: HOW PAKTEL FLOPES AND ZONG COME INTO MARKET...
HOW PAKTEL FLOPES AND ZONG COME INTOMARKET
Paktel is a mobile telecommunication companyin Pakistan. It was the first company granted alicense to carry out cellular phone services inPakistan, set up by Cable & Wireless. It carriedout AMPS servicesIt carried out AMPS services until 2004, when thecompany launched GSM services as well. Paktels maincompetitor is Instaphone
Paktel total disappointment formasses: Online surveyISLAMABAD, July 18 (Online): Consumers are facingenormous difficulties due to network of Pakistansoldest cellular company Paktel throughout the countrysince last many months which has miserably failed tocome to the expectations of its millions of users .According to a survey conducted by Online,various locals in the Capital are totally fed up ofthe service of Paktel, as it is virtually becoming aheadache for masses as it has failed to provide anykind of facility to its consumers despite tallpromises and claims .
Another customer said that Paktel has started free talk time service but whatis the use of the such a service that it takes more than hours to connect and thenwhen it is connected, the call drops after few seconds. In the next minute, theyhave to pay. "Whenever helpline is connected, they give a shrewd answer or inthe other case all lines are busy "Please Call later", or Please Wait", saidanother frustrated customer of Paktel several other users of Paktel have slammed the service as total flop and areslowly switching to other cellular services . They have demanded high ups to direct Paktel to improve its service and stopdeceiving poor masses who are buying the Paktel sims and then cryingafterwards because it is a wastage of time and money both .
INTRODUCTION OF PAKTEL PAKTEL is the first mobile telecommunication on pakistan.It wasfirst ever company granted with licence to carry out cellular phoneservices un pakistan. It main competitor emerged in 1990s as intaphone and soon began todominate the market. However after launch and rapid success of MOBILINK in 1998 bothservices lost market share in january 2007 Millicom sold paktel $284 tochina telecom.
PROBLEM AREA OF PAKTELPAKTEL have seen a recesion period in previousperiod of years,and able to compete with othercompanies in pakistan. But after it’s transfer toCHAINA mobile company ,it has started it’s newprojects and trying to be in parrallel with othercompanies. They still facing such problems.It can be in selectionof projects,startegies,or in employee performance ormarket pressure etc.
REVIEW Extra emphasis on few packages and no more newinnovation. Reliance on the strategies that are no more viable.
ZONG HISTROY ZONG is the first International brand of China Mobile being launchedin Pakistan. It is meant to empower and liberate the people ofPakistan in every nook and corner of the country. China Mobile is the worlds largest telecom operator. Having acustomer base of over 300 million customers, its network routes 700million text messages every day and handles 250 million calls everyhour. ZONG would offer its customers with entertaining & innovative valueadded services and will empower them by giving a wide variety ofproducts, services & content to choose from. We are privileged to bethe pioneering country introducing this brand with others to follow.And God willing, together we will also make ZONG a success story forothers to try and replicate.
WHAT PAKAGES ZONG OFFERINGTODAYS:Timepey is a service thatadds the much awaitedconvenience to peopleslives. The three mainservices offered include..Flutter is a bouquet thatoffers so much ..Manchester United has signeda three- year partnership ..Business as usual for ZongBlackberry services ..One of the unique features ofChina Mobile servicing ..
Initiator in Pakistan in 1991.Start with digital services.Convert in GSM in 2004.Currently 22 cities of pakistan.Basic focus on customer satisfaction.
HOW ZONG BECOME A SUCCESSSTORY: Didn’t Rush for Offerings The calmness we saw in launch campaign was alsoobserved in latter promotions and offerings. Let me pointout Zong’s free call on one number package, theyintroduced it a month earlier than they started advertisingit. Meanwhile, it remained in what you can say betaversion. There is another example, when Mobilink offered Rs. 1 Permin call, which was responded next day by Telenor with asimilar offer. Ufone in a week or so came up with Uwon,while Zong took 2 months to start Rs. 1 per min call. Itshows how calmly they observe market trends beforelaunching products.
Targeted Low End Market“Target the low and middle end market” According to me, this is thetagline of Zong’s strategy. They researched (or I don’t know if they reallyresearched or it just happened – because we don’t see Pakistanicompanies doing research), understood Pakistani market and came upwith products and offers that masses wanted. Yes, they were leastinterested in very few number of elite class customers, instead they hitthe low end market.So this was about Zong, and how they managed to grab 6 millionsubscribers in record time.
REVIEW,CONCULSION ANDRECOMMENDATION STRENGTHS Richest company of telecom sector in Pakistan Largest company of China on the basisof subscribers. Plans of aggressive network expansion WEAKNESSES Comparatively late entrant in market. Currently negative word of mouth inconsumers mind. Weak network support. Less man power. OPPORTUNITIES Only 1/3rd of Pakistani population is cell phone user so 2/3rd segments are stillleft to THREATS Competitors. Governmental policies. exploit. Growing trend of mobile telephony. Conclusion After spending time with organization I have figured out that CMPak is quite optimistic about itsgrowth and success. It seems like management has get rid of the old and negative thoughts of ZONGand putting their maximum effort for CMPak’s success. The management has a pre planned level of achievement which they say that they will achieve that inthe year 2011. Also the management seems like they are expecting some great promotions in the meantime every one has crossed fingers. Also the way company has planned to expand the network it seems like the organization will reallyachieve their targets. They have planned to install 5500 BTS by the en of this year. Till now they haveinstalled 2950 BTS. The management said that you yourself will see the difference by the end of thisyear. So over all in my view the aggressiveness of company shows that it will soon become a leading cellphone operator of country.
They must analyze the following for bettergeneration of revenues They suggestedfollowing tag lines for CMPak“Give maximum coverage to users”“Communication Reinvented”“Pioneers are back”“Give quality services” Try to co-brand withsome IT-based company like Microsoft(Acer) thatwill surely add value and prestige to theproducts and services ofCMPak especially w.r.t advancedtechnologies.In future the company can collaborate withbanks in order that the customers/users candirectly refill their credits or can pay billsthrough the ATM machines.The company can go for kiosk marketing atplaces like airports, shopping malls andcenters. This marketing technique willpromote the brand image.