Presented By
     Syed Laraib Imtiaz
Muhammad Nabeel Haider Khan
       Zeeshan Zaki


      Presented To
      Naveed Illyas
Introduction
•   A subsidiary of Mobilink GSM
•   Is a wireless broadband ISP of Pakistan
•   Based in Karachi
•   Started operations in 2007
•   Infinity service was launched in 1st qtr of 2008
•   Later acquired LinkdotNet as well
Services
• High speed internet in Karachi region

  • WiMax based

  • Landline based

• Our focus is on Wimax based service associated
  with the brand Infinity.
Customer Perceived Cost
• Time cost
  – Service can be activated within 12 hours

• Psychic Cost
  – Varies from person to person
  – Used to be status booster but not anymore
  – 7 day trial period to reduce psychic cost
  – There was a time Infinity was available to 3k a month

• Energy Cost
  – Next to no energy cost as bill payments / orders can be
    made online / via phone and even scratch cards

• Monetary Cost (discussed in detail in pricing sec)
Customer Perceived Value
• Image Value
• High image value: Brand name MOBILINK
• Word of mouth testimonials

• Personnel Value
• Excellent Post sales / Pre sales services
• Mostly contact center based

• Service Value
• Services quality varies from region to region
• Extremely reliable
Industry Analysis




                                       Mobilink Infinity


Market share comparison 2009 ~ 2010 (figures by PTA)
Industry Analysis

Mobilink Infinity, 4%




          Market share comparison % (figures by PTA)
Industry Analysis




Volume growth of the industry of past 5 years (figures by PTA)
Industry Analysis




 Expected growth rate (figures by PTA)
Industry Analysis




Technology Pool and share (figures by PTA)
Industry Analysis




Fixed vs Wireless Technology 2009 ~ 2010 (figures by PTA)
Broad-band Penetration
Macro Economic Factors

• Floods / Taxes have affected buying power
• Recession / Inflation
• Industry will grow as the impacts diminish
• Govt. support to Wireless BB operators essential for
  equal penetrating opportunity (Dependency on PTCL)
• Funding required for laying advanced fiber cables
  (Infrastructure Development)
Micro Economic Factors
• Decreased sales in 2010 (just 3% growth compared to lowest among
  competitors being 110%)
• Ineffective promotions
• Marketing Intelligence for facing competition by new entrants
• Focus Shift for expansions and Re-Assessment of product
• CPE is a major cost and is funded by the company
• Bandwidth requirement in case of increment of average users in
  particular area.
Consumer Behavior

Differences  Involvement         High Involvement                      Low Involvement



Significant Differences between   Complex buying behavior               Variety-seeking buying
Brands                                                                  behavior




Few Differences between Brands    Dissonance-reducing buying behavior   Habitual buying behavior
Consumer Behavior
• Dissonance Reducing
• High-involvement
  – Reliability and speed is of core importance
  – People depend on internet services a lot in the
    modern age
• Few differences
  – Features and prices are identical
  – There is a lot to choose from
Consumer Behavior
• Consumer feedback varied from location to
  location as the quality of service depends on the
  coverage
• Consumers very easily switch to competitors
  product.
• Post sales service is extremely important
Product life cycle
•   Limited data of two years is not good judge of position in PLC curve
•   Infinity is in growth stage but faces pre-mature stagnation
                              Mobilink Infinity Growth
                   40000

                   35000

                   30000

                   25000

                   20000

                   15000

                   10000

                   5000

                       0
                       2007        2008     2009     2010   2011
Consumer Behavior & PLC
• Recommendation
  – Service should be un-interrupted and quality shouldn’t vary
    depending on areas which is a challenge
  – More competitive pricing
     • More service plans / packages
  – Introduce favorable plans for students
  – Post Sales Customer Care and feedback should be triggered to assess
     the dissonance level before subscribers start switching en-masse.
  – Limited Time Value offers for existing customers be announced to
     retain their interest.
  – Limited time offer for insured “Zero Down-payment/Activation”
     package for CPE should be considered.
  – Enhancing services to include Unlimited Download package or
     limited time period “Unlimited Download” promotion is
     recommended to reduce customer post-purchase dissonance.
Segmentation


• Demographic Segmentation
– High – middle / Low income earners

      – Educated / Uneducated

   – Tech savvy / Non tech savvy
Targeting
        – High – middle / Low income earners

              – Educated / Uneducated

            – Tech savvy / Non Technical

Potential customers include:
– Students
– Executives / Home workers
– etc
Positioning
• In the eyes of the company
  – Reliable
  – Quality service
  – Excellent customer support


• In the eyes of the customer
  – A reliable internet service for some & for most its
    quality is suffering based on WOM feedbacks
  – Good quality but comparatively expensive.
Positioning Map
•   Based on PTA QoS survey 2010 price vs PTA rank (technology-neutral)
•   1= lowest, 5= highest
                           Perceptual Map / Positioning Map

            1700


            1500
                                          MOBILINK
                                         INFINITY
            1300                                                         WITRIBE
                            WORLD CALL

                                                                WATEEN
            1100

                                                     PTCL
             900


             700


             500
                   0   1           2             3          4        5             6
Product Mix
• Mix width = 2
  • GSM Services and Broadband Services
• Line depth = 4
  • 4 different packages of Infinity
• Mix Length = 4
  • Infinity, DSL, JAZZ and Indigo
• Product Life Cycle Stage
  –   Infinity is in growth stage.
  –   Expanding to Other cities as well.
  –   New competitors have entered
  –   There is fierce competition
Product Mix

                              Broad Band Internet        Mobile-based Internet

Infinity Wi-Max                                     GPRS Internet



        Basic 512K
        Optimum, 512K
                                                            (Volume Buckets)
        Basic 1M
        Optimum 1M



Infinity (Link Dot Net) DSL                         WAP Internet



        Basic 512K
        Optimum, 512K
                                                            (General Package)
        Basic 1M
        Optimum 1M
• Pricing
                            Creating Value
               Package Name           Speed        Data (GB)      Amount (Rs)
                  i-512K Basic       512 Kbps         7              600
               i-512K Optimum        512 Kbps         15            1100
                   i-1M Basic         1 Mbps          7              800
                i-1M Optimum          1 Mbps          15            1400
                        Line Rent                           100
                        Free Minutes (On Any
                        Network)                            100
                        Infinity to Infinity     Unlimited
                        Calls to Mobilink GSM                 1
                        Off-net Mobile Calls                1.5
                        Off-net Fixed Line Calls
                        (PTCL/WLL)                            1
                                                 100 Minutes
                                                 in Rs. 100
                                                 (On Any
                        Voice +                  Network)
• Activation Charges: 1500 with Wifi CPE and 500 non Wifi CPE.
• USB Dongle Charges 3,999
Distribution Channels

• Franchises
  They are not owned by Mobilink but they have given them
  authority to sell Infinity

• Customer Care Centers
  Solely owned by Mobilink to cater customers in supporting
  help them for buying a product and giving them complete
  comprehensive detail about Infinity

• Corporate Sales Representative
  To cater business units and sectors by personally visiting
  the target company that requires broadband services for
  their offices
•
Communication
  ADVERTISING          SALES PROMOTION        PUBLIC RELATIONS   PERSONAL SELLING        DIRECT MARKETING




Print and broadcast
                      Fairs and trade shows    Annual reports     Sales presentations       Telemarketing
       ads




  Brochures and
                            Exhibits                                Sales meetings             E-mail
     booklets




                        Demonstrations                                                   SMS to Mobilink VAS
    Billboards                                                    Incentive programs
                         through Kiosk                                                         Users




                      Augmented with other
   Display signs                                                 Fairs and trade shows
                            products
Communication
Recommendations
• There is a need to promote the services rigorously.
• New packages should be introduced
   – Special packages for students etc.

• Expand to other cities.
   – Lahore, Islamabad

• Need to start advertising on Electronic Media as well.
• Expansion to Data Sims (eVDO SIMS) for Using Mobilink Backbone similar
  to PTCL strategy
  Developing Enhanced Wi-Fi to allow users with Wi-Fi enabled devices to
  use their network in urban areas without procuring a new device
Summary of Recommendations
•   Mobilink must induct EvDO to cater to the needs of potential new users.
•   Mobilink may work to obtain a separate downlink/flag-point license or
    purchase significant shares of PTCL DSL operations to enable a synergy for
    DSL based connections and PTCL infrastructure reliance.
•   The Infinity package requires adequate promotion on television like
    Wateen, PTCL DSL, WorldCall and Wi-tribe. Mobilink should consider this.
•   Sourcing of a low cost CPE/Wi-Max Dongle device provider is necessary for
    reducing associated down-payments financial obligations in case of
    redundancy and slavage.
•   Mobilink can launch Data SIMS for LAPTOP users expanding covering
    without much effort and investment.
•   Mobilink must transfer all of its Internet dependency on its own
    infrastructure and work on 3G and 4G systems for faster Internet Service.
Summary of Recommendations
•   Mobilink Infinity must be spread to other cities and utilize Mobilink’s own
    network (the largest in Pakistan). The coverage
•   Mobilink should consider acquiring Qubee to reduce the competition its
    current Wi-Max line faces. This is the same strategy it used previously to
    buy Link Dot Not DSL services and City Cable Network HFC services.
•   Unlimited download package must be introduced and special discounts for
    learning teenagers should be announced.
•   Higher speed internet architecture and technologies need to be screened
    and/or tested by Mobilink for any potential future capital investment.
•   Customer feedback and post-purchase dissonance for QoS must be
    handled delicately and improved.
•   Replacement infrastructure to PTCL for downlink. Disruption in supply to
    Mobilink results in transfer of dissonance directly to Mobilink Infinity
    Users.
Q&A




THANKS!!!

Mobilink Infinity

  • 2.
    Presented By Syed Laraib Imtiaz Muhammad Nabeel Haider Khan Zeeshan Zaki Presented To Naveed Illyas
  • 3.
    Introduction • A subsidiary of Mobilink GSM • Is a wireless broadband ISP of Pakistan • Based in Karachi • Started operations in 2007 • Infinity service was launched in 1st qtr of 2008 • Later acquired LinkdotNet as well
  • 4.
    Services • High speedinternet in Karachi region • WiMax based • Landline based • Our focus is on Wimax based service associated with the brand Infinity.
  • 5.
    Customer Perceived Cost •Time cost – Service can be activated within 12 hours • Psychic Cost – Varies from person to person – Used to be status booster but not anymore – 7 day trial period to reduce psychic cost – There was a time Infinity was available to 3k a month • Energy Cost – Next to no energy cost as bill payments / orders can be made online / via phone and even scratch cards • Monetary Cost (discussed in detail in pricing sec)
  • 6.
    Customer Perceived Value •Image Value • High image value: Brand name MOBILINK • Word of mouth testimonials • Personnel Value • Excellent Post sales / Pre sales services • Mostly contact center based • Service Value • Services quality varies from region to region • Extremely reliable
  • 7.
    Industry Analysis Mobilink Infinity Market share comparison 2009 ~ 2010 (figures by PTA)
  • 8.
    Industry Analysis Mobilink Infinity,4% Market share comparison % (figures by PTA)
  • 9.
    Industry Analysis Volume growthof the industry of past 5 years (figures by PTA)
  • 10.
    Industry Analysis Expectedgrowth rate (figures by PTA)
  • 11.
    Industry Analysis Technology Pooland share (figures by PTA)
  • 12.
    Industry Analysis Fixed vsWireless Technology 2009 ~ 2010 (figures by PTA)
  • 13.
  • 14.
    Macro Economic Factors •Floods / Taxes have affected buying power • Recession / Inflation • Industry will grow as the impacts diminish • Govt. support to Wireless BB operators essential for equal penetrating opportunity (Dependency on PTCL) • Funding required for laying advanced fiber cables (Infrastructure Development)
  • 15.
    Micro Economic Factors •Decreased sales in 2010 (just 3% growth compared to lowest among competitors being 110%) • Ineffective promotions • Marketing Intelligence for facing competition by new entrants • Focus Shift for expansions and Re-Assessment of product • CPE is a major cost and is funded by the company • Bandwidth requirement in case of increment of average users in particular area.
  • 16.
    Consumer Behavior Differences Involvement High Involvement Low Involvement Significant Differences between Complex buying behavior Variety-seeking buying Brands behavior Few Differences between Brands Dissonance-reducing buying behavior Habitual buying behavior
  • 17.
    Consumer Behavior • DissonanceReducing • High-involvement – Reliability and speed is of core importance – People depend on internet services a lot in the modern age • Few differences – Features and prices are identical – There is a lot to choose from
  • 18.
    Consumer Behavior • Consumerfeedback varied from location to location as the quality of service depends on the coverage • Consumers very easily switch to competitors product. • Post sales service is extremely important
  • 19.
    Product life cycle • Limited data of two years is not good judge of position in PLC curve • Infinity is in growth stage but faces pre-mature stagnation Mobilink Infinity Growth 40000 35000 30000 25000 20000 15000 10000 5000 0 2007 2008 2009 2010 2011
  • 20.
    Consumer Behavior &PLC • Recommendation – Service should be un-interrupted and quality shouldn’t vary depending on areas which is a challenge – More competitive pricing • More service plans / packages – Introduce favorable plans for students – Post Sales Customer Care and feedback should be triggered to assess the dissonance level before subscribers start switching en-masse. – Limited Time Value offers for existing customers be announced to retain their interest. – Limited time offer for insured “Zero Down-payment/Activation” package for CPE should be considered. – Enhancing services to include Unlimited Download package or limited time period “Unlimited Download” promotion is recommended to reduce customer post-purchase dissonance.
  • 21.
    Segmentation • Demographic Segmentation –High – middle / Low income earners – Educated / Uneducated – Tech savvy / Non tech savvy
  • 22.
    Targeting – High – middle / Low income earners – Educated / Uneducated – Tech savvy / Non Technical Potential customers include: – Students – Executives / Home workers – etc
  • 23.
    Positioning • In theeyes of the company – Reliable – Quality service – Excellent customer support • In the eyes of the customer – A reliable internet service for some & for most its quality is suffering based on WOM feedbacks – Good quality but comparatively expensive.
  • 24.
    Positioning Map • Based on PTA QoS survey 2010 price vs PTA rank (technology-neutral) • 1= lowest, 5= highest Perceptual Map / Positioning Map 1700 1500 MOBILINK INFINITY 1300 WITRIBE WORLD CALL WATEEN 1100 PTCL 900 700 500 0 1 2 3 4 5 6
  • 25.
    Product Mix • Mixwidth = 2 • GSM Services and Broadband Services • Line depth = 4 • 4 different packages of Infinity • Mix Length = 4 • Infinity, DSL, JAZZ and Indigo • Product Life Cycle Stage – Infinity is in growth stage. – Expanding to Other cities as well. – New competitors have entered – There is fierce competition
  • 26.
    Product Mix Broad Band Internet Mobile-based Internet Infinity Wi-Max GPRS Internet Basic 512K Optimum, 512K (Volume Buckets) Basic 1M Optimum 1M Infinity (Link Dot Net) DSL WAP Internet Basic 512K Optimum, 512K (General Package) Basic 1M Optimum 1M
  • 27.
    • Pricing Creating Value Package Name Speed Data (GB) Amount (Rs) i-512K Basic 512 Kbps 7 600 i-512K Optimum 512 Kbps 15 1100 i-1M Basic 1 Mbps 7 800 i-1M Optimum 1 Mbps 15 1400 Line Rent 100 Free Minutes (On Any Network) 100 Infinity to Infinity Unlimited Calls to Mobilink GSM 1 Off-net Mobile Calls 1.5 Off-net Fixed Line Calls (PTCL/WLL) 1 100 Minutes in Rs. 100 (On Any Voice + Network) • Activation Charges: 1500 with Wifi CPE and 500 non Wifi CPE. • USB Dongle Charges 3,999
  • 28.
    Distribution Channels • Franchises They are not owned by Mobilink but they have given them authority to sell Infinity • Customer Care Centers Solely owned by Mobilink to cater customers in supporting help them for buying a product and giving them complete comprehensive detail about Infinity • Corporate Sales Representative To cater business units and sectors by personally visiting the target company that requires broadband services for their offices •
  • 29.
    Communication ADVERTISING SALES PROMOTION PUBLIC RELATIONS PERSONAL SELLING DIRECT MARKETING Print and broadcast Fairs and trade shows Annual reports Sales presentations Telemarketing ads Brochures and Exhibits Sales meetings E-mail booklets Demonstrations SMS to Mobilink VAS Billboards Incentive programs through Kiosk Users Augmented with other Display signs Fairs and trade shows products
  • 30.
  • 31.
    Recommendations • There isa need to promote the services rigorously. • New packages should be introduced – Special packages for students etc. • Expand to other cities. – Lahore, Islamabad • Need to start advertising on Electronic Media as well. • Expansion to Data Sims (eVDO SIMS) for Using Mobilink Backbone similar to PTCL strategy Developing Enhanced Wi-Fi to allow users with Wi-Fi enabled devices to use their network in urban areas without procuring a new device
  • 32.
    Summary of Recommendations • Mobilink must induct EvDO to cater to the needs of potential new users. • Mobilink may work to obtain a separate downlink/flag-point license or purchase significant shares of PTCL DSL operations to enable a synergy for DSL based connections and PTCL infrastructure reliance. • The Infinity package requires adequate promotion on television like Wateen, PTCL DSL, WorldCall and Wi-tribe. Mobilink should consider this. • Sourcing of a low cost CPE/Wi-Max Dongle device provider is necessary for reducing associated down-payments financial obligations in case of redundancy and slavage. • Mobilink can launch Data SIMS for LAPTOP users expanding covering without much effort and investment. • Mobilink must transfer all of its Internet dependency on its own infrastructure and work on 3G and 4G systems for faster Internet Service.
  • 33.
    Summary of Recommendations • Mobilink Infinity must be spread to other cities and utilize Mobilink’s own network (the largest in Pakistan). The coverage • Mobilink should consider acquiring Qubee to reduce the competition its current Wi-Max line faces. This is the same strategy it used previously to buy Link Dot Not DSL services and City Cable Network HFC services. • Unlimited download package must be introduced and special discounts for learning teenagers should be announced. • Higher speed internet architecture and technologies need to be screened and/or tested by Mobilink for any potential future capital investment. • Customer feedback and post-purchase dissonance for QoS must be handled delicately and improved. • Replacement infrastructure to PTCL for downlink. Disruption in supply to Mobilink results in transfer of dissonance directly to Mobilink Infinity Users.
  • 34.