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Market Plan on “VODAFONE”

Marketing Plan on Vodafone

We aim customer
satisfaction

Submitted to: Miss Soofia Waleed


Submitted by: “The Intellectuals”

Course: MBA (spring)


Semester 1st
July, 2006

Referred by:

Research by: “The Intellectuals” 1


Market Plan on “VODAFONE”

Group Introduction:

Group Name: “The Intellectuals”

Group Slogan: “Intellectuals, in touch with tomorrow.”

Group Leader:
Name: Rabia Allamger Roll # 6332

Group Coach:
Name: Aisha Sajjad Roll # 6360

Group Members:
Name: Khuram Ekhlaq Roll # 6348
Name: Sundas Iqbal Roll # 6356
Names: Saba Naseer Roll # 6371
Name: Waqas Roll # 6316

Research by: “The Intellectuals” 2


Market Plan on “VODAFONE”

Acknowledgement

Above all the praise goes to ALMIGHTY ALLAH with


whom all the sovereignty lies, who bestowed us the
essence of knowledge and the sight to differentiate
between the right & wrong. By the grace of Allah we have
completed this project
successfully.

We will greatly like to thank our kind and committed


teachers Mrs. Sofia Waleed who gave us such type of activity to
enhance our knowledge. And Sir Asif who always ready to share their
knowledge and helped us in every regard.

Thank you All.

Research by: “The Intellectuals” 3


Market Plan on “VODAFONE”

Dedication

Our dedication goes to the one, who is the Most Beneficent,


The Most Merciful (ALLAH),
To our Parents & Teachers.

Research by: “The Intellectuals” 4


Market Plan on “VODAFONE”

Vision

“Passion for the world around us”

Our mission is to be the provider of high value, high quality, and


convergent cellular company worldwide. These scalable solutions will have
unparalleled support to ensure flexibility and to meet and exceed customer
expectations. Our mission is not to earn profit but retain the customer for the long
period of time. Our Vision and Values guide the way we act. Our Vision is to be
the world’s mobile communication leader – enriching customers’ lives, helping
individuals, businesses and communities be more connected in a mobile world.

Our Values are about how we feel – in other words the Passions that make
us the company we are.

Research by: “The Intellectuals” 5


Market Plan on “VODAFONE”

1) Executive Summary
The plan is about the new cellular company that will launch in the Pakistan named
“VODAFONE” in January 2007...

Vodafone is the package of services that we are going to introduce in the Pakistan. We
have made our product more compatible as compare to the other existing companies. We
have competitive edge with the Value added services. We are offering more powerful
network coverage to our customers. We have less price product in the cellular market. So
it can give us the competitive edge as compare to the other companies. We divide the
market into different segments. And we have made our strategies according to our
targeting segments. We defined that we will advertise our product according to the
targeted segments.

Our competitors already have the big market share, that’s why our strategies are very
strong. We want to achieve the (50%) growth rate.

We explained the marketing strategy and explain all target market and all other necessary
parts of the marketing strategy. Then we explained marketing mix and objectives and all
other environmental changes. In the end expected budget we have explained. And in the
end all controls have been described. This includes management, finance and all other
authorities and departments in control.

Our objectives that we defined in the market plan are retained & satisfy the customers.
We will provide them the best services.

Research by: “The Intellectuals” 6


Market Plan on “VODAFONE”

Contents

Topics
Page no

2) Current Marketing Situation 8


2.1.) Market Description 8
2.2) Product Review 10
2.3) Competitive Review 12
2.4) Distribution Review 23

3) Strength, Weaknesses, Opportunities, and Threats, Analysis 23


3.1 Strength 23
3.2 Weaknesses 26
3.3 Opportunities 26
3.4 Threats 27

4) Objectives & Issues 29

5) Marketing Strategy 30

5.1 Positioning 31
5.2 Product Strategy 31
5.3 Pricing Strategy 33
5.4 Distribution Strategy 34
5.5 Marketing communications Strategy 35
5.6 Marketing Research 36
5.7 Marketing Organization 39

6) Action programs 41

7) Budgets 43

8) Controls 46

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Market Plan on “VODAFONE”

2) Current Marketing Situation:


Vodafone is a new launching product in the market. Cellular company is the fast growing
industry in Pakistan. It has large scope due to this advantage it can expand with success.
The increasingly competitive telecommunications market, both wire line and wireless,
has increased carriers' awareness of the importance of this industry. As a result,
companies are investing millions of dollars in the Telecom industry.

Most of the Groups predict that the Vodafone market will grow to almost 600 billion
worldwide in coming years. Vodafone Targeted segments Professionals, Students,
Household Women, Layman (labors, Teenagers), Corporate Users, Entrepreneurs, and
Medical Users. These markets will play the vital role in terms of growing. Vodafone will
provide the real time access to their targeted markets. Their customer service
representatives can better respond to customer needs in a timely and efficient manner.
And it will be the part of the strategy to retain & satisfy the customers. Expected growth
rate from the Vodafone is 50% within one year. To develop the markets share in this
competitive environment. Vodafone must carefully target specific market segments.

2.1) Market Description

Targeted Segments Customer need Features Promotion strategy


for Targeted
Segments
Professionals Stay in touch with postpaid package, Advertisement on
every one, Sharing Conference call Internet
information, Call Hold & Call
Waiting
Call Divert
Short Messaging
Services, Voice mail.
Students Low call rates Prepaid package, Personal selling,
SMS on low rates sponsor to the
different
activities( Cricket
Matches, Painting
Exhibition)
Household Women Entertainment Vodafone Zone Advertisement
(Entertainment & through television
show biz news)
Corporate Users Transfer data & Stay Postpaid package, Advertisement on
in touch with others. MMS, email Internet
News information.
Entrepreneurs Want to know about Reminder, Postpaid Advertisement on

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Market Plan on “VODAFONE”

their schedules, easy package, MMS, Internet + Hoardings


access. email, Live News
Medical Users Exchange latest Live News, Send the Hoardings + Retailers
information with favorite information + Advertisement on
others. to the others Internet
networks.

Vodafone Targeted segments Professionals, Students, Household Women, Layman


(labors, Teenagers), Corporate Users, Entrepreneurs, and Medical Users. Vodafone will
provide the latest information and highest care to their targeted segments. Vodafone has
the features that are actually required to their potential customers. We will make our
product more live and real. That’s why we will provide all that features those are the
necessity of our potential customers.

At this time we are plan to just introduce our product with the best promotion. (But we
are planning for delight the customers through the low price and packages as compare to
the competitors. We have planned to increase our targeted segmentation because we want
to perform services in the whole cities of Pakistan. In the whole segmentation, we will
want to perform services for the youngsters.

Students To
Labor implement
on these
Lay man Packages we
will increase
the
Business Sector
satisfaction
&
convenience
level among
the
Graphical Representation of target market Customers.
2.2)

Product Review:
Vodafone Group was established in the UK in 1983 and has equity interests in 27
countries over five continents, and partner networks in a further 31 countries. As at 31

Research by: “The Intellectuals” 9


Market Plan on “VODAFONE”

December 2005, Vodafone had a proportionate customer base of 179.3 million customers
around the world.

Vodafone has developed an open and flexible product platform from which it can expand.
The current product portfolio includes:

Packages

Prepaid Package Postpaid Package

PRICE: RS.145 with RS. 100 free balance

Prepaid Package: (Gladden)

Call rate: Rs. 1.35 + tax from Vodafone to Vodafone


Call rate: Rs. 2.75 + tax on other networks

Sms: Rs.1.00 + tax on Vodafone


Sms: Rs. 2.00 + tax on other networks
International Sms: Rs 3.45 + tax

Cards Price:
40, 100, 300, 600, 1000.

Straightforward load:
Rs. 50

Post paid Package:

1: Gossip

Research by: “The Intellectuals” 10


Market Plan on “VODAFONE”

Line rent: Rs 130


Free 17 Sms
Power tools Sms Rs. 1
International Sms Rs 2

2: Ease

Line rent: Rs 150


Free 15 Sms
Power tools Sms Rs. 2
International Sms Rs 3

3: Zenith

Call rate: Rs. 1 on Vodafone + 50 minute call free


Line rent: Rs 450
Free 25 Sms
Power tools Sms Rs. 1.25
International Sms Rs. 5

Features:

Basic Services
Caller line identification
Conference call
Call Hold & Call Waiting
Call Divert
Short Messaging Services

Value Added Services


Voice Mail
Picture Messaging & Multi-media Services (MMS)
Surf Now [Mobile Internet]
75K SIM
Vodafone Zone

Competitive Edge:
We are introducing where I am (Package). In which you can know that where are you at
this time. This package can locate you whole. It will tell you what is the city name, street
name in which you locate.

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Market Plan on “VODAFONE”

It will show you the map of Pakistan.

PROFIT IN 1st YEAR

Profit in first will be 2400,000, based on sales of Vodafone 20,000 units at a whole price
of RS. 120.

2.3) Competitive Review


Mobil ink, Warid, Telenor, Paktel and Ufone are the big competitors of Vodafone.
Because they have already got a big market share. Their positioning and targeted
segments are very strong. They are playing a vital role to run the cellular industry in
Pakistan. Their targeted segments are the professionals, Teenagers, Students,
Businessman, Household Women, Executives, and laymen. These cellular companies
have the same type of product features but they are competing with each other on the
price setting matter. Second basic reason is their Network coverage. How compatible
their product is?

*Product Mobil ink

At this time Mobil ink has a biggest market share (50%) due to its vast network coverage.
This product is connection base. Design and style of the product is very simple but
quality is good. Our customer is satisfied and our market share is better than others. Our
product growth is growing with the passage of time and we try to lunch our product in
cities, towns, villages, and northern areas of Pakistan. Our main competitor is Warid
telecom. Threat)

Price: RS.150 with the 182 free balance.

Prepaid Package:

Research by: “The Intellectuals” 12


Market Plan on “VODAFONE”

Call rate: Rs. 2.35 + tax from jazz to jazz


Call rate: Rs. 4.75 + tax on other networks

Sms: Rs.1.00 + tax on Jazz


Sms: Rs. 2.00 + tax on other networks

International Sms: Rs 4 + tax

Cards Price:
40, 100, 300, 600, 1000.

Easy load
Rs. 50 to onwards

Post paid Package:


Freedom 1:
Line rent: Rs 150
Free 15 Sms
Power tools Sms Rs. 2
International Sms Rs 4

Freedom 2:

Line rent: Rs 200


Free 20 Sms
Power tools Sms Rs. 2
International Sms Rs 4

Freedom 3:

Call rate: Rs. 1 on Jazz + 50 minute call free


Line rent: Rs 500

Research by: “The Intellectuals” 13


Market Plan on “VODAFONE”

Free 20 Sms
Power tools Sms Rs. 1.25
International Sms Rs. 3

Freedom 4:

Call rate: Rs. 1 on Jazz + 100 minute call free


Line rent: Rs 1500
Free 20 Sms
Power tools Sms Rs. 1
International Sms Rs. 2.35

Procedure of Price Setting:


The tax is not included in the final price but included only in over all cost. Competitor
play main role in price setting when they change their packages, then we have to change
our packages.

PLACE:
This product is available now in 390 cities and towns of Pakistan.

Procedure of Distribution:

Head office:
Main franchise: (Distributor)
Sub Franchise: (Retailer)
Ware houses:
Small Shops
Strategy and Plan about providing the product in every area of Pakistan:

PROMOTION:

Actually promotion is a first step when we produce a


product. But we make it strategy in last.

Procedure of Promotion:

In promotion our main objective is to guide and convince the


customer through;
Awareness
Knowledge
Liking
Decision
Purchase

Research by: “The Intellectuals” 14


Market Plan on “VODAFONE”

Main Sources of Promotion:


Media
Electronic Media
Hoardings
Newspaper
University students

*Warid Telecom

After Mobil ink, we can say that Warid telecom is the successful cellular company
because they are advertising the product on the high level. Warid has 10% market share
in this minimum time. They have satellite base product. Design and style of the product is
very simple but quality is good. Our customer is satisfied and our market share is better
than others. Our product market share and market growth are increasing with the passage
of time.
Our plan is not to earn but to increase market share. To satisfy and retain the customer
through better services. Our main competitor is Mobil ink. (Threat)

Price: Rs. 250 With Rs.100 balance

Prepaid Package:

Call rate: Rs. 2.75 on Warid


Call rate: Rs. 4.75 on other networks

Sms: Rs. 0.50 on U fone


Sms: Rs. 2.00 on other networks
International Sms: Rs. 5

Cards Price:
100, 250, 500, 1000

Post paid Package:

Package 1:
Call rate: Rs. 2.00
Line rent: Rs 00
Free talk time: 00 min
Free Sms: 00
International Sms Rs. 4
Advance payment: Rs.1000
Friends & Family members: 5

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Market Plan on “VODAFONE”

Package 2:
Call rate: Rs. 1.75
Line rent: Rs 150
Free talk time: 60 min
Free Sms: 15
Free MMS: 3
International Sms Rs. 4
Advance payment: Rs.1000
Friends & Family members: 10

Package 3:
Call rate: Rs. 1.50
Line rent: Rs 500
Free talk time: 240 min
Free Sms: 50
Free Mms: 5
International Sms Rs 4
Advance payment: Rs.1500
Friends & Family members: 20

Package 4:
Call rate: Rs. 1.25
Line rent: Rs 1000
Free talk time: 475 min
Free Sms: 60
Free Mms: 5
International Sms Rs 4
Advance payment: Rs.2000
Friends & Family members: 25

Package 5:
Call rate: Rs. 1.00
Line rent: Rs 1750
Free talk time: 850 min
Free Sms: 75
Free Mms: 7
International Sms Rs 4
Advance payment: Rs.2500
Friends & Family members: 30

Package 6:
Call rate: Rs.50
Line rent: Rs 2500
Free talk time: 1200 min

Research by: “The Intellectuals” 16


Market Plan on “VODAFONE”

Free Sms: 100


Free MMS: 10
International Sms Rs 4
Advance payment: Rs.3000
Friends & Family members: Unlimited

Procedure of price setting:

The tax is included in the final price. Competitor play main role in price setting when
they change their packages, then we have to change our packages.
PLACE:
Our product is running now in 230 cities and towns in Pakistan.

Procedure of Distribution:
Head office
Main franchise (Distributor)
Sub Franchise (Retailer)
Ware houses
Small Shops

PROMOTION:

We spent a lot on our promotion to compete the Mobil ink and we promote
through different types of activities Hockey match. Sponsorship a comedy play for
Promotion.

Procedure of Promotion:

In promotion our main objective is to guide and convince the customer through;
Awareness
Knowledge
Liking
Decision
Purchase.

Main Sources of Promotion:


Media
Electronic Media
Hoardings.
Newspaper
University students

*Product Ufone

Research by: “The Intellectuals” 17


Market Plan on “VODAFONE”

Ufone has 25% market share. Their product is connection base.


We are planning to lunch our product in northern areas. Our main competitors are Mobil
ink & Warid. (Threat)

Price: Rs.200 with Rs. 150 balance free

Prepaid Package:

Call rate: Rs. 2.50 on U fone From 7 am to 10 pm & 1.50 From 10 pm to upward.
Call rate: Rs. 2.50 on other networks

Sms: Rs. 0.50 on U fone


Sms: Rs. 1.00 on other networks
International Sms: Rs 4

Cards Price:
100, 250, 500, 1000

Call rate Rs. 1.00 on 4 U fone and 1 PTCL number.

Post paid Package:

Call rate: Rs. 1.00


Line rent: Rs 200
Power tools Sms Rs. 2.50
International Sms Rs 4

Procedure of price setting:

The tax is not included in the final price but included only on over all cost. Competitor
play main role in price setting when they change their packages, then we have to change
our packages.

PLACE:
Our product is running now in 230 cities and towns in Pakistan.

Procedure of Distribution:

Head office:
Main franchise: (Distributor)
Sub Franchise: (Retailer)
Ware houses:

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Market Plan on “VODAFONE”

Small Shops

PROMOTION:

We spent a lot on our promotion to compete the Mobil ink and we promote through
different types of activities to sponsor a Hockey match & a comedy play.

Procedure of Promotion:

In promotion our main objective is to guide and convince the customer through;
Awareness
Knowledge
Liking
Decision
Purchase.

Main Sources of Promotion:


Media
Electronic Media
Hoardings.
Newspaper
University students

*Product Telenor

Telenor has 8% market share. This product is connection base, actually it is a service.
Design and style of the product is very simple but quality is good. Our customer is
satisfied and our market share is better than others. Our product market share and market
growth increasing with the passage of time
Soon our product will be the best cellular service of Pakistan.
Our main competitor is Mobil ink, U fone, Warid. (Threats)

PRICE: RS. 225 with RS. 150 free balance.

Research by: “The Intellectuals” 19


Market Plan on “VODAFONE”

Prepaid Package:

Call rate: Rs. 0.75+ tax on Telenor


Call rate: Rs. 1.25+ tax on other networks

Sms: Rs. 0.75 on tele nor


Sms: Rs. 1.25 on other networks

International Sms: Rs 4

Cards Price:
100, 250, 500, 1000

Easy load:
From Rs. 10 to 10,000

Procedure of price setting:

The tax is not included in the final price but included only on over all cost.
Competitor play main role in price setting when they change their packages, then we
have to change our packages.

PLACE:
Our product is running now in 160 cities and towns in Pakistan.

Procedure of Distribution:

Head office
Main franchises (Distributor)
Sub Franchises (Retailer)
Small Shops

PROMOTION:

We spent a lot on our promotion to compete the Mobil ink and we promote through
different types of activities to sponsor a Hockey match & a comedy play.

Research by: “The Intellectuals” 20


Market Plan on “VODAFONE”

Procedure of Promotion:

In promotion our main objective is to guide and convince the customer through;
Awareness
Knowledge
Liking
Decision
Purchase.

Main Sources of Promotion:


Media
Electronic Media
Hoardings.
Newspaper
University students

*Product Paktel

Paktel has 7% Market share. It has bad network coverage problem. Their call rates are
also effective for their customers.

Procedure of Distribution:

Head office
Main franchises: (Distributor)
Sub Franchises: (Retailer)
Small Shops

PROMOTION:

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Market Plan on “VODAFONE”

We spent a lot on our promotion to compete the Mobil ink and we promote through
different types of activities to sponsor a Hockey match & a comedy play.

Procedure of Promotion:

In promotion our main objective is to guide and convince the customer through;
Awareness
Knowledge
Liking
Decision
Purchase.

Main Sources of Promotion:


Media
Electronic Media
Hoardings.
Newspaper
University students

Competitor Product Features Price


Mobil ink Sim (Services) CLI, conference call, Call hold RS.150
& call waiting, call divert,
SMS, Value added services.
Postpaid, Prepaid. Jazz octane
Warid Sim (Services) CLI, conference call, Call hold RS.250
& call waiting, call divert,
SMS, Value added services.
Warid Zone.
Telenor Sim (Services) CLI, conference call, Call hold RS.225
& call waiting, call divert,
SMS, Value added services.
Postpaid, prepaid. Talk Shalk.
Ufone Sim (Services) CLI, conference call, Call hold RS.200
& call waiting, call divert,
SMS, Value added services.
Postpaid, prepaid.
Paktel Sim (Services) CLI, conference call, Call hold RS.100
& call waiting, call divert,
SMS, Value added services.
Postpaid, prepaid. Hi tunes

2.4) Distribution Review

Research by: “The Intellectuals” 22


Market Plan on “VODAFONE”

Vodafone will be distributed through a network of selected stores and non store retailers
in the top stores of Pakistan. Among the most important channel partners are being
contracted.

Distribution Channels:

Gift shops
Superstores
Main franchises: (Distributor)
Sub Franchises: (Retailer)
Small Shops
Whole sales
Personal selling
Online retailers
Electronic specialty stores

Although distribution will initially be restricted in the few popular cities but after six
months we are plan to expand our Vodafone (product) in the northern areas of Pakistan.
We will emphasize trade sales promotion in the first year. We have also plan to retain &
satisfy the targeted market for providing them the better in low price services.

3) Strength, Weaknesses,
Opportunities and Threats, Analysis
In the SWOT analysis that follows, Vodafone Telecom Company maintains a healthy
position. Our Packages has substantial strengths to balance out weaknesses. Market
opportunities for the cellular industry are very strong and big. Competitive threats are
becoming more of an issue as key competitors’ ramp up for new opportunities and other
new competitors are entering the industry.

3.1 Strength
The strengths of cellular communication include wide coverage, small mobile units,
low cost, high functionality, and the ability to integrate voice and data on the same
network. Wide coverage allows mobile users to communicate and to manage their
business from almost anywhere in the Pakistan. A major capability that allows this
mobility is the fact that cellular coverage encompasses over ninety-five percent of the
Pakistan population. Small mobile units may fit into a pocket or pocketbook and can
be taken almost anywhere. Service costs may be low. When considering the tangible
and non-tangible benefits an organization may receive. High functionality gives users
access to many applications such as using mobile units safely while driving,
retrieving their voice mail and electronic mail, logging onto a remote mainframe, or

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Market Plan on “VODAFONE”

even using point-of-sale devices. Although there are other technologies that may
achieve these goals, cellular is the only technology with these features that are readily
available and cost effective today. For example, PCS promises to offer similar
services as cellular, but nationwide networks will not be operational and widely
deployed until late 1996 (Thyfault, 1995). Satellite networks also offer this capability,
but many of the networks will not be deployed until 1998.

Vodafone Telecom has developed technical strengths in the following areas:

Design and development of computer applications on UNIX and NT platforms using


languages such as C, C++, and Java and user interfaces such as PowerBuilder and
databases such as Oracle and Sybase.
Expertise in client server based application software including multi-tier application
software development, using object-oriented methodologies.
Expertise in networks programming on UNIX and NT platforms.
Domain expertise in the area of SS7 signaling and GSM protocol layers.
Design expertise on object oriented methodologies and three-tier client server
applications.
Requirements engineering and requirements management.
Project management and project tracking.

WHY USING Vodafone


High Speed:

The digital wireless network is capable of achieving high speed. There is no realistic
comparison. Vodafone is simply the fastest means of accessing the connection.

Dedicated Connectivity:

The customer's connection to the Vodafone is dedicated, meaning the connection is


always available, 24 hours a day, 365 days a year. No busy signals, no waiting to get
online, and no varying connection rates. Always on, and always fast.

Security:

Wireless equipment uses a form of encryption called Wired Equivalent Privacy


Algorithm (WEP) to scramble data sent to our network. This ensures your data will not

Research by: “The Intellectuals” 24


Market Plan on “VODAFONE”

be decipherable in the unlikely event eavesdroppers are able to intercept your wireless
transmissions.

Reliability:

With other types of connections such as DSL, cable, leased lines, and frame relay, there
is always the chance of a router, CSU/DSU, or repeater failure, or the all too common
problem of failure due to the phone company or a construction crew cutting phone lines
in your area. Since we provide the connection end-to-end, the chance of failure is almost
nonexistent. In addition, weather and atmospheric conditions are not a concern.

Costs:

Vodafone offers in a variety of data rates to match your business needs. The setup covers
all labor necessary to install and configure the Antenna, Receiver and Routers. The Cost
as minimum as a business man can imagine.

Quality of service:

The quality of service is built into the differentiated service levels. This provides T1-type
service for business and DSL-type service for residential. It also enables voice and video
capabilities.

Lower risk:

It has less risk for the customer’s. Equipment interoperability around the standard helps
lower the cost of customer premise equipment, while allowing the operator to mix and
match equipment from multiple vendors. Customer service can be provisioned and
managed remotely, reducing operating expenses.
Quality of service: The 802.16 MAC is designed to provide support for voice and video.

END-USER BENEFITS:

Send and receive email quickly and efficiently


Download files, web pages and images at blazing speeds
Operate with an always-ON Internet connection
Allow for a private networking between offices
Protect your office from hacking with a built in firewall
Facilitate high-quality video conferencing
Support interoffice wireless roaming
Improving the productivity of workers through information access
Reducing costs by eliminating process steps
Increasing revenues through the introduction of new products and services
Enhancing customer service capabilities.

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Market Plan on “VODAFONE”

Wider coverage area: Improved non-line of site performance increases the operator's
coverage of the targeted service area, meaning that more end users can get access to high-
speed wireless Internet service.

BASIC TECHNOLOGY:
Three steps are involved in Vodafone Network.

Point to Point wireless Network


Home Wireless Network
Transportation of data.

3.2 Weaknesses
Weaknesses include cellular fraud, limited bandwidth, and health concerns. There are
predominantly three types of fraud in the cellular industry today. They are user
subscription fraud, stolen phones, and access fraud (Arcuri, 1995). The most popular
of these is access fraud or "cloning" which occurs when a criminal uses a scanner and
records the Mobile Identification Number (MIN) and Electronic Serial Number
(ESN) of valid users. This captured MIN/ESN combination is programmed into an
illegal phone e which is used fraudulently. The fraudulent calls are then billed to the
MIN of the authorized customer (Telecommunications Fraud, 1994; Abernathy,
1991). Cloning is primarily a weakness of the AMPS analog networks because the
equipment used to commit fraud is readily available to the public.

Vodafone Telecom currently has weaknesses in the following areas:

Lack of Awareness
Employee morale issues.
Communication/language issues between headquarters and northern areas. Version
control issues among UNICORN and MEDUSA product lines.

3.3 Opportunities
Although there is no concrete evidence that the use of cellular technology is damaging to
the users' health, this author believes that managers should prudently avoid the risk of
problems by adhering to the following recommendations:

o Provide special arrangements for users who may be more susceptible to


harm such as pregnant women, infants, and small children.
o Configure the users' operation to keep the transmitting antenna as far away
from the head as possible.
o Purchase low-power systems.
o Advise employees to turn off systems when not in use.

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Market Plan on “VODAFONE”

The opportunities in using cellular technology are extending the bound of a corporation's
network infrastructure to include mobile users that may be roaming locally, regionally or
nationally. The application of cellular technology to business processes m ay make an
organization more productive to improve response times for responding to problems and
requests. This may improve the quality of a service organization by improving
dimensions of quality that the customers' find important. Therefore, cellular technology
presents the opportunity of using wireless technology to make a corporation more
responsive to customer needs and becoming more competitive.

Vodafone Telecom Company currently has opportunities in the following areas.

Wide Network Coverage


Big set up in the market to use the cellular services
New packages provider

3.4 Threats
Vodafone will eventually be more desirable than cellular technology because it will be
less expensive and have more features. Therefore, there is a threat of investing and
relying too much on cellular technology if the applications can not eventually be
migrated to PCS platforms. Managers should not have their organization invest a large
sum of money in cellular technology with the intent of it being a long term investment.
Managers should invest in the technology wisely and be prepared to migrate to newer
forms of wireless technology.

WIRELESS COMMUNICATION ASSOCIATION (WCA) (www.wcai.com):

"The Wireless Communications Association applauds the advancement of voluntary


standards and interoperability as key to keeping deployment costs low and advancing the
growth of wireless broadband," said Andrew Kreig, WCA president. "For these reasons,
WCA participated in the first strategic meeting in July 1998 that led to the formation
Wireless Broadband, and WCA now regards its progress and the supportive efforts of
Wireless Broadband and others as extremely helpful for the industry. We are hopeful that
all these efforts to advance wireless broadband solutions will be undertaken in
conjunction with the WCA. That should promote broad industry participation while
minimizing duplication, especially during this period of financial challenges for the
industry."

Vodafone Telecom potentially faces threats in the following areas:

Internal Risk Factors

A product road map which leads to the development of new functionalities and the
enhancement of existing system modules which are in-line with customer expectations.

Research by: “The Intellectuals” 27


Market Plan on “VODAFONE”

Ability of the company to attract, train, and retain qualified technical, sales, marketing,
financial, and management personnel to meet the challenges of growth.
Attraction of adequate initial capital to jump-start the company to the next level. These
funds will allow the company to hire needed resources, open regional sales offices,
develop OEM/system integration relationships, and develop system enhancements and
new product offerings on a timelier basis.

External Risk Factors

Competition in the market for telecommunications billing and customer care systems is
highly competitive and the company expects this competition to increase. Not only does
the company compete with other independent providers of billing systems and services, it
competes with system integrators and with internal billing departments of many
telecommunications carriers.

It is expected that continued growth and competition in the telecommunications industry,


and the entrance of new competitors into the market, will continue.
Alternative pricing arrangements may be required to cultivate relationships with new
market entrants and to a lesser degree with established companies. These arrangements
may call for deferred payments. However, if the company permits customers to pay for
its products and services on a deferral or revenue sharing basis, the company may
ultimately be unable to collect payments for such products and services.
International factors may cause significant risks to the company. The company's business
may be subject to unexpected changes in: regulatory requirements, tariffs and other trade
barriers, costs of localizing products for foreign countries, lack of acceptance of localized
products in foreign countries, longer accounts receivable payment cycles, difficulties in
managing international operations, political instability, potentially adverse tax
obligations, restrictions on the repatriation of earnings and the burdens of complying with
a wide variety of foreign laws and regulations.
Fluctuations in exchange rates between the United States dollar and foreign currencies
may have a material adverse effect on the company's business, results of operations, and
financial condition and could result in exchange losses. There are no assurances that any
hedging techniques implemented by the company will be successful.
The laws of certain countries in which the company may sell its products and services do
not protect the company's software and intellectual property rights. As a result, it may be
possible for a third party to copy or otherwise obtain and use the company's technology
without authorization, or to develop similar technology independently. If this occurs to
any substantial degree to the company's business, results of operations and financial
condition could be affected.
An integral factor in the company's growth strategy is the development of third party
relationships with a number of consulting and systems integrator firms to enhance its
marketing, sales, and customer support efforts.

Failure to generate these relationships will have a negative impact on the company's
ability to meet its targeted growth in sales.

Research by: “The Intellectuals” 28


Market Plan on “VODAFONE”

Increase the competition


Launch of Vodafone will increase the level of competition. So the threat is that Vodafone
has to decrease the price of the product. And due to tough competition it will be tough to
stay in the market. With the increasing demand for the better services most of the cellular
services providers have entered the market. It is estimated that there are over 50 vendors
for billing and customer care systems.
There is an increasing move by computer and switch vendors, system integrators, and
telecom operators (e.g. IBM, Siemens, EDS, Deutsche Telecom) to develop in-house
billing for customers. They are formidable competitors with deep pockets, large existing
customer bases, and significant influence on customer decision-making.

In addition, the majority of players (both large and small) are extending product service
portfolios to provide all services, i.e. Internet, mobile, cable, fixed and convergent
services. Vodafone Telecom Company will compete in this market by providing high-
value products and services at competitive prices.

Competitor Financial Performance


The market for billing and customer care has enjoyed solid growth for the past six years.
Companies that compete in this market were direct beneficiaries of this growth, as were
their shareholders.

4) Objectives & Issues


We have set the particular objectives for the Vodafone expand. We have divided the
objective in two parts. It means what will we achieve in the first year & what is the basic
strategy for the next year.

First year objectives


Units sales 24000
volume
Market share 5%
Promotion ¼ of the investment
Budget
Basic Strategy Dynamic strategy that can be change
according to the strategies of the
competitors

Research by: “The Intellectuals” 29


Market Plan on “VODAFONE”

Second year objectives


Units sales 26000
volume
Market share 10%
Promotion ¼ of the investment
Budget
Basic Strategy Dynamic strategy that can be change
according to the strategies of the
competitors

Issues
Launch
positioning
Investment
Competitive Edge
Brand image
Measuring the Marketing
Strategy Implementation

5) Marketing Strategy
The following sub-topics cover the marketing strategy for Vodafone cellular company.

Mission statement:

Our mission is to be the provider of high value, high quality, and convergent
cellular company worldwide. These scalable solutions will have unparalleled support to
ensure flexibility and to meet and exceed customer expectations. Our mission is not to
earn profit but retain the customer for the long period of time. Our Vision and Values
guide the way we act. Our Vision is to be the world’s mobile communication leader –
enriching customers’ lives, helping individuals, businesses and communities be more
connected in a mobile world. Our Values are about how we feel – in other words the
Passions that make us the company we are.

One of our four corporate Values is 'Passion for the world around us'

"We will help the people of the world to have fuller lives - both through the services we
provide and through the impact we have on the world around us."

Research by: “The Intellectuals” 30


Market Plan on “VODAFONE”

5.1) Positioning
Using product differentiation we are positioning the Vodafone as a versatile and
beneficial service and product for our customers. Our marketing strategy is to introduced
the high frequency satellite radio waves.

Vodafone cellular company's position relative to these drivers:

1. Price: Vodafone cellular company will maintain a price that is 20% less than
market vendors

2. Features: Within the given product module, Vodafone cellular company will
offer features that meet or exceed vendors. Vodafone cellular company will also
maintain a robust product road map that is discussed and approved by vendors in
a user group format.

3. Service Offering: While service offerings to operators from other vendors are
shrinking or too expensive, Vodafone cellular company will offer a complete
package of services at affordable prices.

4. Product Flexibility: Vodafone cellular company will strive to maintain a lead in


the ability of the operator to easily add schemes and re-configure the system. In
addition, Vodafone cellular company will maintain an open environment.

5. Scalability Vodafone cellular company will continue to engineer scalability into


its product. This will entail commitment to multi-rating engines and porting to
more robust operating systems like UNIX.

6. Vendor Experience: Vodafone cellular company will follow a stepped strategy


to be sure we under-commit and over-deliver to our customers.

This positioning strategy differentiates Vodafone cellular company from other


competitors. This leaves a number of other vendors which are targeting vendors. The
approach of these vendors is to lead with price and minimize service functionality.
Vodafone cellular company believes that most operators desire a full-service vendor or a
partnership at an affordable price. Vodafone cellular company intends to be that vendor.

5.2 Product Strategy

The Vodafone cellular company business model is based on a customer excellence or


customer intimacy model. Vodafone cellular company is organized as product and
consulting services groups that are guided by our marketing strategy.

Research by: “The Intellectuals” 31


Market Plan on “VODAFONE”

Customer Excellence
Vodafone cellular company will strive to understand the customer intimately in order to
provide solutions that match their specific needs. To be successful, Vodafone cellular
company will develop long-term relationships and choose customers that share this
model.

In the best-selling publication "Discipline of Market Leaders," customer excellence is


defined as "specializing in satisfying unique needs." These unique needs are recognizable
only by a vendor with a close relationship and intimate knowledge of the customer.
For a comprehensive definition of the model for customer excellence, Vodafone cellular
company's plan includes:

• Develop long-term relationships with our customers.

• Avoid clients that do not have long-term potential.

• Steer clear of pure transactions or one-time deals.

• Do whatever it takes to please the customer.

• Educate employees to be adaptable, flexible, and multi-talented.

• Create an unmatched value proposition of best total solution for our clients.

• Search for new areas of mutual cooperation.

• To constantly improve our value model, develop a value proposition around


solutions, and aggressively evolve and improve each solution.

• Develop an operating model dedicated to delivering unmatched value.

In order to develop high value solutions for our customers, Vodafone cellular company is
organized with our core development and professional service groups based in Pakistan.
Our worldwide headquarters are based in America, England, and Canada. where
marketing and executive management will lead the overall enterprise.

To ensure that Vodafone cellular company can provide customer excellence, we will be
highly decentralized, keeping decisions close to the customer. In order to accomplish this,
the company has established sales, marketing and support teams in Europe, Asia, Latin
America and North America.

Our service strategy is to provide the best and foremost unique service in the town. We
are working on LEO system. Cellular telephony has brought us a new technological
"system"-- the personal communications system (PCS). In the fully developed PCS, the
individual would carry his telephone with him. This telephone could be used for voice or
data and would be usable anywhere. Several companies have committed themselves to
providing a version of this system using satellites in low earth orbits (LEO). These orbits
are significantly lower than the TELSTAR/RELAY orbits of the early 1960s. The early

Research by: “The Intellectuals” 32


Market Plan on “VODAFONE”

"low-orbit" satellites were in elliptical orbits that took them through the lower van Allen
radiation belt. The new systems will be in orbits at about 500 miles, below the belt.

5.3 Pricing Strategy


Our pricing strategy for products is to maintain a 30% to 40% advantage
below vendors for total installation cost which includes custom services and other
expenses. Coupled with our strong product road map, Vodafone cellular company
believes that this forms the core of a very strong value proposition.

PRICE: RS.145 with RS. 100 free balance

Prepaid Package: (Gladden)

Call rate: Rs. 1.35 + tax from Vodafone to Vodafone


Call rate: Rs. 2.75 + tax on other networks

Sms: Rs.1.00 + tax on Vodafone


Sms: Rs. 2.00 + tax on other networks

International Sms: Rs 3.45 + tax

Cards Price:
40, 100, 300, 600, 1000.

Straightforward load:
Rs. 50

Post paid Package:

1: Gossip

Line rent: Rs 130


Free 17 Sms
Power tools Sms Rs. 1
International Sms Rs 2

2: Ease

Line rent: Rs 150


Free 15 Sms
Power tools Sms Rs. 2

Research by: “The Intellectuals” 33


Market Plan on “VODAFONE”

International Sms Rs 3

3: Zenith

Call rate: Rs. 1 on Vodafone + 50 minute call free


Line rent: Rs 450
Free 25 Sms
Power tools Sms Rs. 1.25
International Sms Rs. 5

Procedure of price setting:

The tax is included in the final price but included only on over all cost. Competitor play
main role in price setting when they change their packages, then we have to change our
packages. This price is not a final price we can change it according to our needs and
competitors.

5.4 Distribution Strategy


Products will be sold through direct and indirect channels. The mix is 50% direct and
50% indirect. Indirect channels include:

System integrators
Computer suppliers
Switch vendors
Multi- operators

Vodafone cellular company is currently developing relationships with indirect channels


including:

Vertical Matrix
Compaq
Gem Plus

Procedure of Distribution:

Head office
Main franchises: (Distributor)
Sub Franchises: (Retailer)
Small Shops

Strategy and Plan about providing the product in every area of Pakistan: We are the
provider for all not for specific class.

Research by: “The Intellectuals” 34


Market Plan on “VODAFONE”

5.5 Communication Strategy


PROMOTION:

Actually promotion is a first step when we produce a product. But we make it


strategy in last. In promotion we will tell our customer about our service features in better
and attractive mood. We will make a good image in the mind of our potential customers
so that they will buy only our product in the world of competition in which all venders
are providing the best services. We will tell our product features.

For example:

Now Vodafone with 3G!

Vodafone live! Is now powered by 3G (UMTS) - the next


generation of mobile network. With 3G you can send and
receive larger pieces of information. Not just voice, text
messages and pictures, but video and music too.
• Make video calls
• Send video messages (MMS)
• Always online facility(GPRS)
• Stay in touch with your office no matter how much far

Procedure of Promotion: In promotion our main objective is to guide and convince the
customer through;

Awareness
Knowledge
Liking
Decision
Purchase.

Main Sources of Promotion:


Print Media
Electronic Media
Hoardings.
Newspaper
University students
Websites

Research by: “The Intellectuals” 35


Market Plan on “VODAFONE”

Advertising in trade journals;


Trade shows and conferences;
Telemarketing;
User group;
Direct mailing;
Targeted sales calls;
Customer referrals.

5.6 Marketing Research


Using marketing research we identify what our customer needs. Either we are fulfilling
their needs or not? they are happy from our service or not? We can take feedback from

Test marketing
Surveys
Questionnaire method.

Sample Questionnaire:

Name (optional):

1) Do u have mobile?
Yes No
2) Which connection do you have right now?
Vodafone Mobil ink Ufone Warid Paktel

3) Do you like Vodafone?


Yes No
4) Did you find your current connection user friendly?
Yes No
5) What is present condition of Vodafone?
Better Good satisfactory poor
6) Is Vodafone satisfying customer needs and demands?
Yes No
7) Did you ever see the ad of Vodafone on TV?
Yes No
8) For what reason you are using current connection?
Economical Easy to use Good service
9) Do you want to see above changing in Vodafone?
Yes No
10) Did you ever call help line? If yes are you satisfied with their behaviors?
Yes No
11) What are the reasons that Vodafone is not so popular?

Research by: “The Intellectuals” 36


Market Plan on “VODAFONE”

1)-

2)-
12) What step Vodafone should be taken to achieve its goals?

1)-

2)-

THANK YOU VERY MUCH FOR PARTICIPATING IN THIS SURVEY!

Signature:

Target customers:

Basically our target market is teen ages colligates. In first year we just
want to retain them not to earn profit.

Post-paid systems

Typical business men are target market of this package.

Post paid Package:

1: Gossip

Line rent: Rs 130


Free 17 Sms
Power tools Sms Rs. 1
International Sms Rs 2

2: Ease

Line rent: Rs 150


Free 15 Sms
Power tools Sms Rs. 2

Research by: “The Intellectuals” 37


Market Plan on “VODAFONE”

International Sms Rs 3

3: Zenith

Call rate: Rs. 1 on Vodafone + 50 minute call free


Line rent: Rs 450
Free 25 Sms
Power tools Sms Rs. 1.25
International Sms Rs. 5
International Sms Rs. 5

1. Prepaid system.
Teen ages and ordinary business men are the target market of prepaid service
system.

PRICE: RS.145 with RS. 100 free balance

Prepaid Package: (Gladden)

Call rate: Rs. 1.35 + tax from Vodafone to Vodafone


Call rate: Rs. 2.75 + tax on other networks

Sms: Rs.1.00 + tax on Vodafone


Sms: Rs. 2.00 + tax on other networks

International Sms: Rs 3.45 + tax

Cards Price:
40, 100, 300, 600, 1000.

Straightforward load:
Rs. 50

Prepaid Package:

8
9 %
% 5
Research by: “The Intellectuals” 3 38
% 2 %
%
Market Plan on “VODAFONE”

Teen ages

Working women

lay man

business men

others Sector

5.7 Marketing Organization


Sales and marketing is a decentralized organization locating our professional staff close
to our customers' operations to ensure customer knowledge intimacy at all times. The
primary functions are:

Direct sales
Channel management
Marketing
Service management
Account management
Program management
Proposals and contract development

Research by: “The Intellectuals” 39


Market Plan on “VODAFONE”

Vodafone cellular company embraces a team-selling methodology with responsibilities


and processes defined for efficient operation. The sales and marketing teams are staffed
with professionals that have substantial experience in selling and marketing hardware,
software, and solutions in the global telecommunications market. Regional organizations
are responsible for definition of the sales and marketing strategies and plans for their
respective territories. Each region also provides significant input and review of the
corporate strategic sales, marketing, and product direction.

Research by: “The Intellectuals” 40


Market Plan on “VODAFONE”

6 Action Program
The Vodafone will be launched in January 2007 one year action program January 2007 to
December 2007 is given under here. In first year we will mainly concentrate on
Targeting, Promotion and Positioning of our product.

Following is the summary of the action program. These are the strategies that we will
implement in the coming year.

January:
We will launch the Vodafone in the January 2007. After that we will promote our product
by using different means. We will exhibit a show in which we display our product
(Vodafone). We provide samples to selected product reviewers, opinion leaders, and
celebrities as part of our public relations strategy. Our training staff will work with sales
personnel at major retails chains to explain the Vodafone features, benefits, and
competitive advantages.

February:
We will start an integrated print/radio/ internet campaign targeting professionals and
consumers. The campaign will show how quickly Vodafone users can accomplish the
task using voice recognition.

March:
We will continue with the multi-media campaign. We will add consumer sales promotion
tactics. We will also distribute new point-of-purchase display to support our retailers.

April:
We will hold the trade sales contest offering prizes for the sales persons and retail
organization that sells the most Vodafone during the 3- week period.

May:
A new national advertising Campaign will start in May. The radio Adds will features
celebrities’ voices using the voice recognition system. The print ads will show these
celebrities holding their Vodafone.

June:
Vodafone will also exhibit a trade show (semiannual); it provides the channel partners
with new competitive comparison handouts as sale aid. We will conduct a survey. That
what did we do with the customers regarding our product. How much successful we are?
We will do a marketing analysis regarding the activities of our product.

July:

Research by: “The Intellectuals” 41


Market Plan on “VODAFONE”

We will launch the Vodafone in the January 2007. After that we will promote our product
by using different means. We will exhibit a show in which we display our product
Vodafone). We provide samples to selected product reviewers, opinion leaders, and
celebrities as part of our public relations strategy. Our training staff will work with sales
personnel at major retails chains to explain the Vodafone features, benefits, and
competitive advantages.

August:
In the fifth month of its launching we will only concentrate on the promotion and
positioning of our product. We will decide the budget for promotion and style of
promotion that how we have to retain the customer for the long run and how we can
position our product in the mind of customer better then competitors so that we may get
competitive edge. We will also emphasis on customer call center.

Customer Care and Administration: we will provide free help line as well
as frequent answers of problems on net. Following things will be covered in customer
call care center.

o Subscriber Registration: Registration is a quick and easy process,


which may be performed both online as well as offline (batch).
o Customer Inquiry:

 Service (primary & value-added services);

 Package related information;

 Tariff related information;

 Bill related information.

o Activation/Deactivation status

o Usage Charges:

 Bill amount;

 Pending/adjustment amount;

 Credit limits information.

September:

Research by: “The Intellectuals” 42


Market Plan on “VODAFONE”

In sixth month we will decide how we can promote our product in unique way. So
that it will be known as differential product. We will emphasis on customer care call
centers so that our employees will help our target market if they will have any problem
during the use of our product.

October:
In October same strategy will be repeated.

November:
In the 8th month we will change our promotion style we will make a lot of banners
which will be pasted in the middle of town so that every one will be noticed them. In
spite of this we will have programs on radio for the promotion.

December:
We will have some extra activities for our promotion. Different activities for our
customers like play a game, Entertainment listen songs etc. free 50 messages in a month
etc.

January (2007)
In January 2007 we will celebrate one year of our launching in different way like
we will held hockey or foot ball match for the public some entertainment show. To
capture their attraction.

7) Budgets
Sales forecast:
Total estimated sale of Vodafone in one year will be varying.

Revenues are calculated separately for each product and for maintenance and consulting
services. In addition, product revenue is broken out between new sales and upgrade sales.
New sales and upgrade sales are further broken down into license, installation, and
customization revenue. The products included in this forecast are customer care and
billing products, prepaid packages.

Research by: “The Intellectuals” 43


Market Plan on “VODAFONE”

Monthly Sales Forecast

Other

Expenses

Advertisement

Expense Forecast

All expenses incurred on advertising traveling other billing charges etc.

Research by: “The Intellectuals” 44


Market Plan on “VODAFONE”

Marketing Expense Budget

2005 2006
Advertising/Promotion 1,098,000 1,185,000
Travel 3,186,000 3,297,000
Other 0 0
------------ ------------
Total Sales and 4,284,000 4,482,000
Marketing Expenses
Percent of Sales 14.19% 9.46%

Sales vs. Margins.

Research by: “The Intellectuals” 45


Market Plan on “VODAFONE”

Profit and Loss A/c:

Sales: 52978457

Operating Expenses:
Advertising/Promotion 1,185,0003,
Travel 3297000
Other 1150000
Electricity bills 1500000

Total Expenses (17797003)

NET PROFIT 35181454

8) Controls
We are planning to have tight control measures to closely monitor quality and
customer service satisfaction. By adopting this strategy we will able to correct our
mistakes quickly and will be able to make customer delighted.

Sales and marketing is a decentralized organization locating our professional staff close
to our customers' operations to ensure customer knowledge intimacy at all times. The
primary functions are:

Direct sales
Channel management
Marketing
Product management
Account management
Program management
Proposals and contract development

Research by: “The Intellectuals” 46


Market Plan on “VODAFONE”

Vodafone cellular company embraces a team-selling methodology with responsibilities


and processes defined for efficient operation. The sales and marketing teams are staffed
with professionals that have substantial experience in selling and marketing hardware,
software, and solutions in the global telecommunications market. Regional organizations
are responsible for definition of the sales and marketing strategies and plans for their
respective territories. Each region also provides significant input and review of the
corporate strategic sales, marketing, and product direction. And we will have tight control
over it.

Conclusion

Cellular communication technology gives corporations the ability to extend the bounds of
a communications infrastructure to mobile-untethered users. Many corporations can and
are translating this mobility to a competitive advantage by enhancing inter and intra-
company communication. Competitive advantages may be achieved in many ways
including improving the quality of a company's products or services, improving the
relationship between a firm and its stakeholders (Note 1), increasing productivity , and
lowering costs (e.g., Freeman, 1984; Keen, 1986; Porter, 1980). This research paper
described cellular technology, competing technologies, cellular applications, life cycle
phases, cost considerations, hardware and software requirements, strengths, weaknesses,
opportunities, and threats found in cellular technology. It also makes recommendations
on how to incorporate cellular technology into organizations. Managers should use
information presented in this paper as a guideline to help make decisions relating to
cellular communication.

The opportunities for further research in the field of cellular technology include
quantifying how the technology improves productivity in organizations, developing
migration strategies to PCS platforms, and integrating the technology into the existing
data network infrastructure.

Research by: “The Intellectuals” 47