Department: Management Sciences

Research Report on

HOW ZONG HANDLE 4 Ps OF

MARKETING EFFECTIVELY
Refers to:

Sir Muzamil Aftab Qureshi.

Date of submission: 30 Nov-2012

From:

Sadia Rizwan Baig(01)

BBA (HONS) FALL# 03

HANDLING 4 PS EFFECTIVELY
MARKETING MIX
(DEFINITON)
It comprise of 4 pillars:
1 Product
2 Price
3 Place
4 Promotions

PRODUCT
A product is seen as an item that satisfies what a consumer needs or wants. It is a
tangible good or an intangible service. Intangible products are service based like the
tourism industry, the hotel industry and the financial industry. Tangible products are
those that have an independent physical existence. Typical examples of massproduced, tangible objects are the motor car and the disposable razor. A less obvious
but ubiquitous mass produced service is a computer operating system.

PRICE
The price is the amount a customer pays for the product. The price is very important
as it determines the company's profit and hence, survival. Adjusting the price has a
profound impact on the marketing strategy, and depending on the price elasticity of
the product, often it will affect the demand and sales as well. The marketer should set
a price that complements the other elements of the marketing mix.

PLACE
A practice involving the application of
regions and countries e.t.c.

branding and sales strategies to different

PROMOTION
represents all of the methods of communication that a marketer may use to provide
information to different parties about the product. Promotion comprises elements
such as: advertising, public relations, personal selling and sales promotion

MARKETING MIX MODEL TO HANDLE 4 Ps

Marketing mix modeling is an analytical approach that uses historic information, such
as syndicated point-of-sale data and companies internal data, to quantify the sales
impact of various marketing activities. Mathematically, this is done by establishing a
simultaneous relation of various marketing activities with the sales, in the form of a
linear or a non-linear equation, through the statistical technique of regression. MMM
defines the effectiveness of each of the marketing elements in terms of its
contribution to sales-volume, effectiveness (volume generated by each unit of effort),
efficiency (sales volume generated divided by cost) and ROI. These learnings are
then adopted to adjust marketing tactics and strategies, optimize the marketing plan
and also to forecast sales while simulating various scenarios.
This is accomplished by setting up a model with the sales volume/value as the
dependent variable and independent variables created out of the various marketing
efforts. The creation of variables for Marketing Mix Modeling is a complicated affair
and is as much an art as it is a science. Once the variables are created, multiple
iterations are carried out to create a model which explains the volume/value trends
well. Further validations are carried out, either by using a validation data, or by the
consistency of the business results.
The output can be used to analyze the impact of the marketing elements on various
dimensions. The contribution of each element as a percentage of the total plotted
year on year is a good indicator of how the effectiveness of various elements
changes over the years. The yearly change in contribution is also measure by a dueto analysis which shows what percentage of the change in total sales is attributable
to each of the elements. For activities like television advertising and trade
promotions, more sophisticated analysis like effectiveness can be carried out. This
analysis tells the marketing manager the incremental gain in sales that can be
obtained by increasing the respective marketing element by one unit. If detailed
spend information per activity is available then it is possible to calculate the Return
on Investment of the marketing activity. Not only is this useful for reporting the
historical effectiveness of the activity, it also helps in optimizing the marketing budget
by identifying the most and least efficient marketing activities.
Once the final model is ready, the results from it can be used to simulate marketing
scenarios for a What-if analysis. The marketing manager can reallocate this
marketing budget in different proportions and see the direct impact on sales/value.
He can optimize the budget by allocating spends to those activities which give the
highest return on investment.

Handling Price
Pricing
Price increases of the brand impacts the sales negatively. This effect can be captured
through modeling the price in MMM. The model provides the price elasticity of the
brand which tells us the percentage change in the sales for each percentage change
in price. Using this, the marketing manager can evaluate the impact of a price
change decision.
Distribution
For the element of distribution, we can know how the volume will move by changing
distribution efforts or, in other words, by each percentage shift in the width or the
depth of distribution. This can be identified specifically for each channel and even for
each kind of outlet for off-take sales. In view of these insights, the distribution efforts
can be prioritized for each channel or store-type to get the maximum out of the same.
A recent study of a laundry brand showed that the incremental volume through 1%
more presence in a neighborhood Kirana store is 180% greater than that through 1%
more presence in a supermarket. Based upon the cost of such efforts, managers
identified the right channel to invest more for distribution.
Launches
When a new product is launched, the associated publicity and promotions typically
results in higher volume generation than expected. This extra volume cannot be
completely captured in the model using the existing variables. Often special variables
to capture this incremental effect of launches are used. The combined contribution of
these variables and that of the marketing effort associated with the launch will give
the total launch contribution. Different launches can be compared by calculating their
effectiveness and ROI.
Competition
The impact of competition on the brand sales is captured by creating the competition
variables accordingly. The variables are created from the marketing activities of the
competition like television advertising, trade promotions, product launches etc. The
results from the model can be used to identify the biggest threat to own brand sales
from competition. The cross-price elasticity and the cross-promotional elasticity can
be used to devise appropriate response to competition tactics. A successful
competitive campaign can be analyzed to learn valuable lesson for the own brand.

INTRODUCTION of ZONG
5

CMPAK(China mobile Ltd

China mobile (PAK)is a 100% subsidiary of China mobile. The pioneering overseers
setup of China Mobile came through acquisition of license from Milicom to operate a
GSM network in Pak.So far CMPAK has invested more than US $ 800 million in the
telecom sector in Pak and an additional 700 US $ till the end of year 2008.
CMPak edge comes from the experience and expertise of running the world largest
telecom service and the commitment they make setting to quality and customer
relation standards .CMPak is geared to offer neatly packaged VAS products that will
benefit the individual ,corporatisms well as small businesses led by team of
professionals from the field of cellular communication.

ZONG
ZONG is the first international brand of China Mobile, launched in Pakistan in 2008.
The company is often cited as China Mobile (Pakistan) or CMPak. As of late 2011,
it had a subscriber base of 13.2 million. The core essence of Zong is to allow people
to communicate at will- without worrying about tariffs ,network coverage ,capacity
issues or congestion. Zong will be supported by ground breaking communication,
trend setting customer service and matched product offering which will redefine rules
of the game and establish ZONG as a serious contender for the number one spot.
VISION
With perfect sincerity and integrity we will strive to fulfill their triple sided
responsibilities ;their economic responsibility; their social responsibility and their
environmental responsibility
MISSION
Communicate a boundless world and construct an information society.

GOALS AND OBJECTIVES

COVERAGE---------at affordable price
CONVINEANCE----at affordable price
CONNECTIVITY----at affordable price
STATISTICS ABOUT ZONG

MARKET

SHARE

OF

ZONG

IN

FEB

2012

RESEARCH METHODOLOGY
a) QUALITATIVE ELEMENT
I had a focused conversation with two subjects of this report and had a brief
conservation about the marketing strategy and sales and distribution channels of
Zong.
QUANTITATIVE ELEMENT
Quantitative element of the report is based on the questionnaires. The objective of
the questionnaire is to measure the
customer loyalty and satisfaction
of
zongers.and the contribution of ZONG in cellular industry.
SECONDARY DATA
The secondary data is taken from two research papers and from the website of
Zong ,PTA,and academic journals.
PRIMARY DATA
I got the primary data from different sources like questionnaires and interview,

b) SAMPLE DESIGN
TARGET POPULATION
The target population includes the customers, and employees.
SAMPLE SELECTION
Due to shortage of time and lack of resources the non probability convinces sampling
is used in this report.
SAMPLE SIZE
To ensure the reliability of data a sample size of 30 respondents is selected.
c) RESEARCH INSRUMENT
RESEARCH INSTRUMENT CONSTRUCTION
A blend of qualitative and quantitative question has been used.
INSTRUMENT VALIDITY AND RELIABILITY
The instrument is reliable in that situation it contains specific questions for the
required objectives of open-ended questionnaire provided with the specific
categorical options .The validity of the questionnaire is judged by the fact that it is
given to the potential respondents.
9

d) PROCEDURES
Data has been collected through questionnaires and research paper etc.

e) SUMMARY
In order to achieve the study objective, a painstaking effort has been made to
construct a questionnaire in which every question has corresponds to the objective.
The questionnaire contains both open ended and close ended questions.

BUSINESS STRATEGY
Strategic Business unit (SBUS)
A SBU is a single product or brand or a line of products or mix of created products
that meets a common market need or group of related needs ,and the units
managements is responsible of all of the basic business function.
ZONG brands /strategic business units.

PREPAID
POSTPAID

BLACKBERRY SERVICE

WAP

There are always two elements for the pioneers.

1. Pioneering cost
2. Pioneering benefit
W hereas ZONG is almost bearing a pioneering cost but at the same
time its also enjoying the better benefits than others ZONG was last mover
in Pakistan in 2008 with GSM 900/1800 technology, and that was the real time for
the enjoyment of profits, as the ZONG as done in previous 4years .So as
the far ZONG is still fetching the more benefits.

10

Marketing strategy
ZONG is currently working on market oriented strategy. There are two main function
on
which
ZONG
is
currently
enormously
focusing.1 . C o s t m a n a g e m e n t . 2 . Q u a l i t y o f s e r v i c e s .
ZONG
has bee n successfully built a superior relati onship wit h their customers
including consumers and corporate. ZONG is completely focusing on the
need and wants of their consumers and providing them all there needs according to
their desires. Especially ZONG has a enormous customer care centre .ZONG
has 3 mainly customer service centers, and the difference is showed with the
statistics which is given below;10000 calls per day 2000 customers connected with
customer services representative (CSR)100-120 calls attended by one CSR in 8
hours including break.

MARKET DRIVEN STRATEGY

Process
SEGMENTS

VALUE OPPORTUNITIES

Capabilities/segment match

Targets

Positioning

11

SEGEMENTATION ,TARGETING AND POSITIONING

ZONG, a telecommunication service provider emphasizes on being part of a
value
deli ver y process. T he first phase, choosing the value, represent s the h
omework marketing must do before any product exists. First, the marketing staff
must segment the market. The variables used for segmenting the consumer market
demographic as well as psychographic:Age
Income
Occupation
Social Class
Targeting
T he second step of choosing the value is selecting the appropriate
target market. ZONG target market varies with its different product lines e.g. the
mainly targets the corporate sector of the Pakistani community. The Student package
and DOSTI HOUR is designed to attract youth; Student Offer Budget is aimed
at the middle and Flutter for upper-middle class, while Zong Business solutions
and WAP,PORTALS,AND ZONG COMMUNITIES the masses with its diverse value
added services. It is important to understand that the future of marketing
telecommunication services in Pakistan is going to be based on targeted
segmentation strategies. ZONG
follows
the
target selection pattern of full market coverage and develop s strategie
s as per the requirement of the different targeted segments.
ZONG has followed a consis tent strategy of growing the network and ensuring
that the products are available everywhere.

Positioning
Developing the offerings value positioning is the last part of choosing the value
phase of the value delivery process. ZONG catchphrase
ZONG------Say it All
Tells all about how they want to position the brand in the minds of their target
customers. The message they want to communicate to the consumer market is
that
Zong
is
the best solution for telecommunication and can be trusted to provide c
ommunicati on facilities all across the globe where no other service is available.
12

PRODUCT
Mainly there are two product lines in which Zong operates with each have
separate target markets and position.
1. Zong Post paid
2. Zong Pre paid
ZONG POST PAID
ZONG, the first international brand of China Mobile, has announced its entry into the
extremely competitive Postpaid market. Pakistans current situation is extremely
competitive, with five telecommunication providers sharing almost more then 650
million customers.

Consumer analysis

Factors effecting consumers, purchasing power

Quality network & availability of products and services

Quality advertisement and quality positioning of products

Prepaid cards taxes are increased from 9% to 15%

Competitors providing flexible verity to subscribe to purchase

13

Pakistan per capita income is $1,207 in 2011-2012

Market Segmentation

Price conscious subscribers.

(Psychographic Segmentation on the basis of low (Psychographic Segmentation on

the basis of low tariff rates motivational driving force)tariff rates motivational
driving force)

Network Quality and high Network availability conscious subscribers

(Psychographic Segmentation)

Youth segment of mobile communication subscribers.

(Behavioral and Psychographic Segmentation on the basis of youth taste)

Business community segment.

(Demographic, Psychographic,
Behavioral Segmentation on the basis of occupation, status, consumption. Income
level and education level)
Target Market

I have divided the market for ZONG postpaid in to three groups

First group of youngsters, where they can have access to a maximum talk time in
limited pocket money or earnings include students & masses between the ages
of 18-25

The second group is made of business class. Which are having a trend of using
postpaid?

14

The third group includes those individuals who have been facilitated with ZONG talk
free packages in prepaid.
Price (ASSUMED)
I Have following pricing concept for ZONG postpaid sales
Market Penetration Pricing Strategy- charging low price to encourage the customers.
Free air time and SMS both on-net off-net
Free of cost sim for new subscribers
Lowest security charges in comparison with competitors.
No hidden charges.

(Place & Distribution strategy)

ZONG perform both direct and indirect distribution of ZONG postpaid

Direct distribution can be possible from the ZONG 178franchises & 22 CSC which
are acting throughout Pakistan

While in indirect distribution ZONG uses its 100,000 retail outlets

Providence of service guides, Tariff plan, vouchers, helping post materials, products
will be provided to the retailers through franchises sales team (RSOs)

DSO activities will be made on both company & franchises level, where dedicated
staff will be hired for the subject activities

For good placement of ZONG postpaid, we will provide ZONG labeled baskets to
several retailers and franchises.

15

PRICE
The amount of the money which a customer pays for getting the product is called
price
.Basically price is the first impression of a product which a customer
perceives. When price of a product would be different from its competitor customer
would think that there must be some difference in the quality as well. So this
can easily be said that, The price is directly associated with the quality and
brand name of the product.
SELECTING THE PRICING OBJECTIVES
The company first decided where it wants to position its market offering. The clearer
the firms objective the easier it is to set price. A company can pursue any of
five major objectives through pricing:

Survival

Maximum current profit

Maximum market share

Maximum market skimming

Product-quality leadership .The main objective of the pricing for ZONG is to

survive in the market. The profits are less important then survival. According to
ZONG there are two kinds of pricings,
1)
Purchasing price i.e. initial connection price
2)
Regular price i.e. call charges per minute

16

Pricing Strategy of ZONG

ZONG is also offering postpai d conn ections wit h the name of ZONG
POST PAID, popular within the business class. In this way, ZONG is earning
maximum profits by enabling people from different target segments .ZONG
PREPAID customers can now call US and a number of other Zone
1destinations on ZONG local outgoing rate. ZONG have following current price
Rates on different packages
How you express yourself, defines who you are. With ZONG not only can you
express more with exclusive value-added services, but also enjoy more
choice in plans and discounted airtime rates. Contoured to become part of
your expression, ZONG ensures that you derive utmost value out of all your
communications, and feel free to be yourself.
If you want to enjoy postpaid privileges with the least amount of line rent, this
package is for you. Welcoming you aboard the postpaid lifestyle, I-one hundred also
offers the best SMS rates keeping in mind your utmost convenience

PRICING STRATEGY FOR PREPAID

ZONG is offering its products and services at a low price so ZONG is using
price penetration because all the packages (postpaid and prepaid) are very
low priced and a l s o o t h e r v a l u e a d d e d s e r v i c e s a r e a l s o v e r y l o w i n
c o s t . S o m e o f t h e m a r e absolutely free of cost like:

Missed call alert

E-care
MNP
Conference call
Mobile number portability

17

Subscription of SMS packages As ZONG gives its customers a package called

location base charging it charge you only one time charges and then whole day free
and many more other. ZONG also using bundle pricing like SMS packages, voice
bundle and mobile phone offers
3.7Pricing objectives of the company:
Company objective is to provide their customer the low call rate price and
give the better services to the customer. For this purpose ZONG introduced many
call packages that is suited to particular person that used the mobile. Company used
the market segmentation geographically, age and financially. It is also provide the
lowest call rate and sms rates indifferent connection then every person can
easily used that is perfect for him so it is the best strategy of the company.
Company also introduced special packages on special events like the basant,
valentine day, eid-ul-fiter, eid-ul-azha and many others occasion.
3.8Product mix pricing strategies:
ZONG sets the line pricing only the price is between Rs.100 to Rs.300 so
customer can buy the product and all the packages are in every persons range.
Company also provides the balance in sim that is optional. Sim that have balance
higher pricing rates than that have no balanced. The companies by products are
SMS GPRS MMS and call features that provide the company that is some are
already available on sim and are activated on our request.
3.9Price adjustment strategies:
Company adjust the different prices on different events and low the price and
also provide the free connection on her shows and street program only
the
balance
price
is
charged to the customer the connection is free of cost. Pricing strategi
es are divide d geographically and product packages when the company
introduces its product company offer the low price and also some time free of
cost. Most of the place the company distributes its connections free and on
discount on the different event like Islamic event the company provides the
discounted call rates and also sms rates and provides the new connection on
discounted rates. When the other companies are reduced the price.
Price changes:
Price changes when the company introduce the new package and launched
in market .When the other competitors change he price the ZONG also
change the call rates and also introduce the other service like the call block
services that other companies are not provide but the ZONG provide their
customer that they block the call and also the sms. Competition of the cellular
companies in Pakistan is very strong because approximately 5 competitors are
in provide there services in Pakistan and the customer also like that company which
provide the lowest call rates and also the best services compare to other services
providers.
18

3.11Inflating price chang es:

Com pany
change the price with inflat ing price changes whe n the other company
change the price low then ZONG then company also introduce the other
package
compare
to
the
compet itors package s but
the low
price most of the packag es are very compatible compare to the other
cellular companies. one of the side is always high like if the calling rate i s l o w s m s
rate is high and if the calling rate is high the sms rate is low
m o s t o f t h e companies used this strategy but the ZONG is best that give the both
lowest call and sms rate in one connection.

3.12Competitor's reactions to price changes:

Other companies are also low their price compare to ZONG but always the ZONG is
the best that give the lowest call rate other companies also introduced
different packages thats fill only the one side lowest calling rates or the sms rates
only most of the perfect compotator in the market comparatively close to TELENOR,
and zong is also the a compotator that give the lowest calling rates and sms bundle
but ZOGN is the fully perfect all side of the market. Most of the people used the
ZONG

3.13Company's responses to price changes:

Company also respond to the compotators prices that they offer so when
the prices of the other companies are set at low then ZONG also
introduced the lowest call rates and distributed the free connections in
market.
ZONG
also
introduced
the
lowest
call
rates
in
international wi de but the other
companies are not ZONG
i s t h e b e s t I w e c a l l t h e internationally most of the country the calling rates is
less then the other cellular companies.

19

PRICING STRATEGIES OF ZONG (Assumed)

Competition based pricing

A pricing method in which a seller uses prices of competing products as

a benchmark instead of considering own costs or the customer demand.
Competition based pricing is a price set by a company for a product to compete with
another company's pricing. Production and distribution costs are ignored to drive
demand towards another brand. This method of pricing can cause a long-term decrease
in product perception and decrease a product's value for future profits.

Psychological pricing
Psychological pricing or price ending is a marketing practice based on the theory that
certain prices have a psychological impact. The retail lprices are often expressed as "odd
prices": a little less than a round number, e.g. $19.99 or 2.98. The theory is this drives
demand greater than would be expected if consumers were perfectly rational

Factors in setting price

20

Factors in Setting Price

PRODUCT LIFE CYCLE (Assumed)

21

Marketing Strategy Over the Product Life Cycle

INTRODUCTION

GROWTH

MATURITY

DECLINE

Marketing strategy
emphasis

Market development

Increase market Defend market

share
share

Maintain efficiency in
exploiting product

Pricing
strategy

High price, unique

Lower price

Price at or below

Set price to remain

product / cover
production costs

over time

competition

profitable or reduce
to liquidate

Promotion
Strategy

Mount sales
promotion for
product awareness

Appeal to
mass market

Emphasize
brand differences,
benefits & loyalty

Reinforce loyal
customers; reduce
promotion costs

Place strategy

Distribute through
selective outlets

Build intensive
network of
outlets

Enlarge
distribution
network

Be selective in
distribution, trim
unprofitable outlets

PLACE

22

During the last 4 years Zong has set up large network in country. Currently Zong is
covering 11000+ sites. This has involved the investment of the company more than
25 million $ .Zong have more than 21 switches and 1708 cell sites and number is
increasing day by day. Zong has also developed around 1100 KM optical cable. As
Zong is a new entry in market so they struggle a lot as market is growing also very
fastly.In upcoming years Zong is trying to invest in technological upgrades ,superior
customer services and improve
connectivity.Zong is constantly expanding their distribution and franchise network in
nation wide so that zong customer find them easily and as soon as possible.
COVERAGE.
Zong provide a huge network of 2700 +cities and connecting over more than three
million family members in every second of day. Now Zong is providing coverage of
three categories. They are

Physical Presence

Zong has physical presence in the area

Indoor Spillover coverage.

High coverage level in adjoining area

Out door Spillover coverage.

Medium coverage level in adjoining area

DISTRIBUTION CHANNEL OF ZONG
Zong provide its service products directly to customers or with help of intermediaries
involved in distributing its product. Distribution channel contain set of
interdependent organizations involved in the process of making a product or service
available for use or consumption by the consumer or business users. ZONG also
distributes its product to end user with help of intermediaries as well as it
distributes
its
product
directly
to
cu stomers.
ZONG s u p p l i e s i t s p r o d u c t r a n g e t o i n t e r m e d i a r i e s w i t h i n v o l v e m e
n t o f i t s Commercial and Sales Department.

ZONG
authorizes lim ited number of deal ers to deliver its service product. But
ZONG provides its prepaid cards to almost all the markets and

23

consumer shops. Providing its prepaid cards in every corner of the city helps
ZONG to satisfy the need of consumer and to gain customer satisfaction.
However ZONG deliver its Sims to customer with help of Franchises, service
centers, and sales offices. These Franchises, service centers, and sales offices
are given by the right of providing its service product by ZONG itself.

Distribution Strategy OF ZONG

T here is three typ es of distribut ion strategies. Fir st Intensive Dis tributi
on, second Extensive Distribution and third is Selective Distribution. However
ZONG follow both intensive and exclusive distribution strategies. While
providing its prepaid cards ZONG follow Intensive Distribution strategy means that
stocking prepaid cards in as many outlets as possible. While providing its service
products ZONG follow Extensive Distribution strategy means that it gives limited
number of dealers the right to deliver its product.
Logistic Management & ZONG
In todays global marketplace, selling a product is sometime easier than
getting it to customers. Companies must decide on the best way to
store, handle and move their products and services so that they are available
to customers in the right assortment, at aright time, and in the right place.
Physical distribution and logistics effectiveness has a major impact on both
the customer
satisfaction
and
company
costs.ZONG also tries to be bes t in phys ica l distribut ion and logist ics eff
ectivenes s .ZONG provides the most extensive network coverage footprint across
Pakistan through an integrated technology infrastructure in more than1100,
towns, villages, and countless remote destinations, including International
Roaming in 43 countries through300 partner operators.
Logistic partnership and ZONG
Comp anies must als o wor k with other chan nel partners to improve loop
ho les channel distribution. The members of distribution channel are linked closely
in creating customer value and building customer relationship. ZONG management
builds logistic partnership to achieve customer value and building customer
satisfaction with different courier services. The couriers companies by which
ZONG have partnered are as follows:
TCS
OCS
UPS

Third party Logistics & ZONG

24

Most business performs their own logistics functions. However growing number of
firms now outsource some or all of their logistics to Third Party Logistics providers.
ZONG also use Third Party Logistic provider for transportation of shipment of
its service products to warehouses, dealers or customers. Different courier service
providers are the ZONG third party logistic providers. The main reason for
using third party logistic provider by ZONG is that it is useful for Low
Fixed Investments. ZONG selects, motivates & evaluates channel members thought
Interviews, Financial standing, Training and Reports.

PROMOTION
Promotion
Companies can do more than make good productsthey must inform
consumers about product benefits and carefully position products in
consumers minds. To do this, they must skillfully use the promotion tools of
advertising, sales promotion, public relations, sales force, direct marketing, and
personal selling.

25

Advertising Goal
The chief advertising goal of ZONG is to increase its customer base and to
stimulate more usage. ZONG is currently using:

Information Advertising:
To create brand awareness and knowledge of its ZONG World brand.

Reminder Advertising:
To stimulate the repeat purchase of its flutter and family pack.
Advertising Budget
Sin ce the competiti on is intense in the telecommun icatio n market
ZONG has a significant advertising budget. It is

advertising heavily to be

heard and to constantly remind its target market to go for zong However;
Zong actual advertising budget was not disclosed by the management.
Advertising Media
Zong
is using televisio n, print, and radio advertisi ng media to dis semina te it
s message and to build a brand preference but the most preferred is
television since this medium is the most powerful, reaches a broad
spectrum of consumers and has the maximum customer impact.

Radio:
It has a relatively large listeners base and so is an effective way to
communicate the message.

Billboards and Print Media:

The Company has come up with elaborate
posters to promote their post-paid brand.

campaigns, billboards and

Advertising Campaigns

26

The advertising theme say it all .Its simply a way to communicate, is

designed to demonstrate the new services simplicity and convenience.

Along with its service debut, Zong launched a nationwide campaign

composed of television commercials and print ads. The national campaign is
supplemented by local and regional ad campaigns produced by the ZONG
licensees. The national print and broadcast ads are designed to be localized. The
success of ZONG has not only to do with its increased offerings, but also has
a great deal to do with the campaigns that ZONG comes up with. The TV ads
exude energy and liveliness, and an expressive color and lightning palette,
the
high
frequency
and visibility
makes these
advertisements
noticeable which results into increased brand awareness and brand loyalty
boosting sales.
Strong Brand Ambassadors:
ZONG in its advertising went on a different route (now copied by competitors) by
starring the most charismatic superstars in its advertisements. The tested method
of having a prett y face holding a ZONG
PACKAGE makes its
advertising campaigns booming.
THE STUDENT OFFER Campaign:
In its STUDENT OFFER campaign has made a conscious effort of strongly placing it
on the image platform and mapping it in the prospects mind making it a affordable
Interestingly, it re-enforces ZONG early perception of being the brand for the
image conscious (peer leader) which gives the impression that STUDENT OFFER
enhanced step further in this direction.

The FLUTTER Campaign:

The current prepaid campaign has brought ZONG s image to the masses and is
more on the functional platform.. It was more than apparent that every single
customer was important and every single subscriber was vital. Almost
immediately, the marketing and advertising improved; and a more conscious
effort was made towards trying to reach out to every aspect of the
consumer market. At first, ZONG went a slightly different route, and instead
of targeting the large youth market, continued to use its tried and tested method of
having a pretty face holding a FLUTTER. But with the competition getting intense,
ZONG finally decided to raise the profile of FLUTTER The tariff wars between the
providers caused ZONG to offer WAP on FLUTTER and then to slash prices
and improve its quality. Finally, zong launched FLUTTER a package designed
for the communication needs and lifestyle of the Pakistani LADIES
segment. The belated foray of ZONG into the ladies market has met with
promising early success, and the new package offers quite a bit. The early success
of has not only to do with its increased offerings, but also has a great deal to do with
the campaign that zong came up with. Perhaps most effectively and symbolically, the
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ad showed a woman embracing the youthful abandon that FLUTTER is shown to

offer.

PRIMARY DATA
The data gathered through the primary and secondary sources will be analyzed
by qualitative methods. Conclusion and analysis will also be included in the
report. The other mathematical tools like graphs, bar diagrams, pie charts and line
diagrams will also be used for the deep and comprehensive analysis of the data.
Questionnaire
Analysis Question:

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In how much price you have bought the connection?

23% Said in an affordable price

48% said it is extra cheap

29% said it is expensive

Why do use ZONG?

54% said due to lowest rates

40% said duo to signal efficiency.

6 % said they dont know.

Is Zong receive extra charges when introduce new package?

98% said yes

2% said no

Are you satisfied with the charges for local call rate offer by zong?

58 % said satisfied
32% said to some extent satisfied

12% said dissatisfied

How is the Zong coverage network?

23 % said good coverage

67% said it need improvement

10 %said poor coverage.

Are you satisfied with the roaming of ZONG?

56% said they dont use roaming

12 % said it is satisfied
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32% said it needs improvement

Are you satisfied by the time takers to the responsiveness of your problem by the
zong connection?

24% said dissatisfied

37% said satisfied

39% said to some extent satisfied

Do you use ZONG for MNP?

69% said no
31% said yes

From primary data analysis I come to know that there are loop holes between
customers and Zong. Many customers of Zong do not use those services which
are free this shows that they are unaware about the information about zong.
Weak advertising campaign about products. Lack of motivation in employees.
INTERNAL FINDINGS AND PROBLEMS AFTER INTERVIEW OF TWO
OFFICIALS.

Job rotation and Advancement.

The main problem I have identified with in the Sales department as a whole is
the lack of job rotation within one department and not enhancing the job
advancement..No official job rotation takes place within the department even
though the employees informally try to learn about the working of other
department through their peers.

Unequal distribution of Work.

Work is not equally distributed on one hand ,some employees have to
work all day without relaxing while some others have very little work to
do. This not only creates confusion among employees but also hurting
and disturbing the overall setup of company .All above it results in
dissatisfaction among customers.

Lack of Staff

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Staff of the Indirect sales is less and work load is too much on the existing
staff especially in operations due to which they are unable to give proper
time to their franchises.

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BCG MATRIX OF PTA

STARS

CASH

QUESTION MARKS

COWS DOGS

Mobilink
Ufone
S
A

Telenor,Wrid

L
E

ZONG

Introduction

Growth

Maturity

Decline

TIME
Life cycle of zong w.r.t competitors

SWOT ANALYSIS OF ZONG

STRENGTHS

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Lowest rates nation wide

Strong image of parent company
Network portability (over 5000 people switched from other networks to zong)
Zong mobile
Resources and capital(Being international brand .It has billions of capital to invest in
various projects0
WEAKNESSES
Bad image with Paktel
Still now old staff
Weak brand standing
Bad Management information System
OPPORTUNITES
Expand globally
Acquire /Merger(as warid is going in loss so it is a big opportunity for Zong to
acquire Warid Telecom team)
New product development
Pak China border
THREATS
Threat of bargaining power of buyers
Substitute product
New entry
Law and order situation, and Blockage of service and sim on occasions.
PEST ANALYSIS
Political Factors.

Political Instability
Deregulation

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Changes in Tax Laws

Economic Factors.

Gross Domestic Product

Average revenue per user (ARPU)

Decline in Money value

Out flow of Capital

Technological Factors

Technological advancement
Technological Trends

Technological Development

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CONCLUSION
As Zong step in cellular industry from last 4 years, so it is said that complaints
from southern and northern region are belong to maintenance flaws. Lack of
strong advertising to attract more and more customers. Competitors of Zong
are in very strong position and Zong is trying to compete them .Less number
of franchises in Pakistan .Only 272 in number which are not enough for huge
customer base. Electric crises is one of biggest problem so f Zong as its
server are switch off and network is disturb. Lack of diversity from competitors
is also seen. Zong does not have the proper list of customers which results in
un authorized Sims and creates threats for prepay package. Busy network
and get jammed on special occasions. Lack of innovative services as
compare to customers. From marketing mix point of view it is analyzed that
Zong is a new player in cellular industry and trying to snatch market share
aggressively with taking risks.
Recommendations

The franchise staff should be well trained and professionals.

People often complaint about the network of ZONG this is not

justified but still need of improvement

The one of

customer complaint is
performance should be updated.

major issues that mostly

billing issue, the
system

Increase the lines of call cent ers

t h r o u g h l i n e s s h o u l d q u i c k l y respond

Management information system is updated and Zong must use improve

technological versions for the data record of customers.

Connectivity and service lapses should be solve immediately and in quick

time.

Number of franchises should be increase with respect to increasing customer

base.

Increase focus on advertising campaign to fetch more and more customers.

From marketing mix view the Zong product will made on following pillars.
(Functionality ,Quality, Brand ,Warranty, Service/Support.)

From marketing mix view the Zong price will set on following pillars.
(Discounts, Allowance)

and

connectivity

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From marketing mix view the Zong Place will set on following pillars.(Channel
motivation, Market coverage, Location.)

From marketing mix view the Zong Promotion will set on following pillars.
(Public relations,Budget,Personnel selling.)

REFRENCES.
Mr.Salman Wassay (Branch head at Zong Isb)
Mr.Ail Ashraf(CS Analyst in CS channel.)
http://www.quickmba.com/marketing/mix/
Www. propakitani.com
www.scribd.com/hanlingmarketing mix.com
www.slideshare.net/jignesh145/marketing-mix-6501361 - 94k -

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