MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM.

INTRODUCTION:
The business we have chosen is to launch USB modems under the banner of THREE.

ABOUT THREE:
3 is part of Hutchison Whampoa's global group of companies. Throughout the world, under the 3 brand, Hutchison Whampoa provides 3G services to over 17.6 million people in Australia, Austria, Denmark, Hong Kong, Ireland, Israel, Italy, Norway, Sweden and the UK. Now it is launching its services in Pakistan.

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Superior University Lahore.

MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM.

USB MODEMS:
Mobile Broadband (USB Modem) is simply mobile or wireless Internet, which means you get all the benefits of the Internet while you're on the go. Mobile Broadband is simple to set up with no cables, wires or costly installations. Its fast internet at broadband speeds. It's simple and versatile. Simply plug it into your Macintosh or Windows laptop and away you go. You can even plug it into your desktop computer.

WHY USB MODEMS:

Telecom sector is one of the most established sectors in Pakistan. Recently, this sector has attracted most of the investment. Furthermore, internet has become the need of the hour. It has become a basic requirement in offices, educational institutions, manufacturing concerns and for recreational activities. Mostly internet users in Pakistan are using dial up connections to access to the internet which is becoming obsolete and most of the users are switching to broadband or DSL for high speed internet. We shall provide the Wireless technology which is the latest development in field of internet.

Mission:
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MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM.

To provide affordable communication services that meets and exceeds customers' requirements To deliver high-quality, flexible and innovative internet services that are cost effective and conducive To provide complete customer satisfaction on time, every time

Vision:
To be the leaders in providing complete communication solutions to Telecom Operators, Corporate, Consumers by creating a world-class cutting-edge network to deliver a broad range of reliable, affordable and quality customer-centric services in Pakistan.

Objectives:
To create know how of the product in minds of customers by publicity and heavy advertisement To cover 40% market shares by providing quality internet service. To enhance the sales by giving attractive packages.

Pestle Analysis:
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MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM.

Hierarchy of Market Characteristics

Market Characteristics

Legal, Political & Economical Factors

Political environment of Pakistan is not stable in the current situation and country is not progressing in terms of economic growth that was expected. Environment is non-friendly with investors & technological sector is under regulation. Inflation is being controlled by state bank and unemployment rate is increasing day by day with the increase of level of poverty. So, in this condition introduce our product with low rate & serving our customers with effective results & attain the maximum satisfaction level of the customers. We are to launch our product with several offerings like their speed, price etc.

Socio cultural Factors

Pakistan is an Islamic country and most of the people dislike anything extraordinary or something which hurts their culture or subculture. We are targeting higher level & upper middle level of market and published our advertisement in English language. In urban areas it is useful and gives the better results as compare to launch in other rural areas.

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Superior University Lahore.

MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM.

Technological Factors
We are launching new technology with which we can compete in the Pakistan & existing companies and after these companies are bound to invest in their infrastructure for expansion and up gradation their existing structure.

Customer Analysis
Customer analysis is either done by secondary data or by collecting information. Determination of customer needs: The needs of the customers have been determined using the questionnaire and we have analyzed the following needs of the customers. a) Better service: It is the first and foremost need of the customers that they want better internet service. As most of the internet users in Pakistan use dial up connection, they are fed up of the quality of service provided by their internet companies. b) Affordable rates: Another basic requirement and need of the customer is that they want improved quality internet service at affordable rates. As majority of the population is middle class, they want affordable internet rates. c) High downloading speed: One of the basic problems to the internet service of Pakistan is low downloading speed, usually up to 6 Kbps. We shall provide download speed up to 100 Kbps. d) 24 hour access to the web: Dial up users are mostly fed up of dialing again and again and offer face a problem of disconnecting. We shall provide 24 hours access to the web without any interruption and failure. e) Small size device: Users want such small device as USB modems to be carried anywhere. Furthermore, they can also avoid the hassle of wires to get connected to the internet.

COMPETITOR ANALYSIS:
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MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM.

Competitor analysis helps us to know about the competition which is prevailing in the market. It also gives the clear view that by using different strategies you can compete all the competitors.

We can analyze our competitors by checking out their brochures, tariffs, offers, packages and also by their website.

1) PTCL Broadband
PTCL is providing broadband service to its customers. It is providing 256 Kbps, 512 Kbps and 1Mbps speed to its customers. It is targeting students by providing special packages to students.

2) Link dot net:

Link dot net is an Orascom Telecommunication company which has already won the confidence of people by providing services through Mobilink. It has entered the market recently and is focusing heavily on marketing to capture the market.

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MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM.

3) WORDCALL:

Worldcall Multimedia established a Hybrid Fiber Coaxial (HFC) scalable network in Lahore thus becoming the first Multi-service operator in the country, providing cable television and Internet-over-cable. In 2003 they launched a state of the art HFC network operation in Karachi under Worldcall Broadband Limited. These are the largest and only national networks capable of triple play (cable TV, high speed internet/data and telephony). These companies are also offering metro fiber lease to a number of other telecom / cellular operators as well as corporates.

4) WATEEN:

Wateen has introduced Wimax technology fir the first time in Pakistan. It is a Abu Dhabis group company which has already launched Warid and Bank Alfalah in Pakistan. Financially, they are very strong and since they are introducing Wimax for the first time, they may turn out to be our greatest competitors.

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MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM.

MARKET SEGMENTATION
1) Geographic:
We shall focus on major cities of Pakistan like Lahore, Karachi and Islamabad.

2) Demographics:
Age: Gender: Income: Occupation: 15 and above male/female 30,000 onwards Students, Businessmen, and Professionals.

3) Psychographics Segmentation:

We will be targeting Upper and upper middle class and corporate culture.

4) Behavioral Segmentation:

Regular internet users who use internet for their official, educational and recreational purposes.

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MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM.

TARGET MARKET AND SALES FORECAST

TARGET MARKET

Target market helps to identify the major objectives and visions of the company within a specific area, specified by the company management.

Population of Karachi Population of Lahore Population of Islamabad Internet users Dial up users Broadband & DSL users

= = = = = =

16 million. (Approx) 10 million. (Approx) 1.5 million. (Approx) 4 million (approx) 3.4 million (approx) 600,000 (approx)

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SWOT ANALAYSIS
Strength:
Company Image: Quality Conscious: Large No. of diversity businesses: Sponsorships: Effective advertisement campaigns. Qualified employees. Advance Technology used. Changing lifestyle.

Weakness:
Weak Distribution: They lack behind in targeting the rural areas and just concentrating in the urban areas Due to high rate of taxes our price are higher Lots of competitors in the market. High cost of production

Opportunities:
Increase Population: Changing social trend: Expansion of distribution net work Introduction of new products Capturing of rural areas.

Threats:
Government Regulation: They face problem if government employ taxes on them which force them to raise the price of their product.

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MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM. Competitors Less awareness of the product

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MARKETING MIX
Following are included in marketing mix:

1) Product 2) Price 3) Place 4) Promotion 5) People 6) Physical Evidence 7) Process

PRODUCT:

Three USB modem is a consumer good. It satisfies the need of the consumer. It is available in different packages targeting different classes of consumers. It offers a complete range of carrier class internet services, broadband for data along with a host of other value added services and applications to set the standards for a new era of communications and entertainment in Pakistan.

These services are provided by following two devices:

a) USB plus b) USB max SUBMITTED BY: DRAGON WARRIOR GROUP.

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MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM.

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USB plus:
It is a portable and basically indoor device. It can be carried anywhere and catches the signals through its antennas. It is usually for household consumers and catches signals through towers and can only be used in the coverage area.

USB max:

It is device whose signal catching power is more and is usually for corporate and office use. It catches signal from satellite and can be used anywhere.

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MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM.

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INTERNET:

We are providing Internet connections to the customers in number of different packages and each package has its own target market. There are two different packages offered to the customers: Corporate packages. Residential packages.

CORPORATE PACKAGES:

These services are usually provided through our USB max Device. Corporate packages are the packages which are offered to the corporate clients like big organizations and companies. Then again it is divided into two classes:

a) Shared connections. b) Dedicated connections.

For shared connections the sharing limit would be 1:5. For dedicated connections there would be a committed line rate (CLR) offered by us and it would not change in any condition.

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MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM.

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RESIDENTIAL PACKAGES:

These services are usually provided through our USB plus Device. Residential packages are the packages which are offered to the customers for their personal or residential use. For residential users, sharing limit is 1:8.

PRICE:

As already mentioned that there are two types of devices:

1) USB plus 2) USB max

1) USB plus:

Each connection which is offered to the customers in different packages is divided on the basis of two classes: a) Speed b) Downloading Limit

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MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM.

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2) USB MAX: For this device, we are offering two packages:

a) Package A:
With this package customer will get 1MB link and unlimited download. The price of this package is: Rs 3500 per month

b) Package B: SUBMITTED BY: DRAGON WARRIOR GROUP.

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MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM. In this package, we are providing 2MB speed and its price is: Rs 5000 per month

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Along with the per month charges, the customer will have to pay Rs 2000 as security for the USB plus and Rs 3000 for the USB max packages.

PRICING STRATEGY:
As we are introducing technological innovation in internet sector, pricing strategy we have used is SKIMMING PRICING STRATEGY.

PLACE:

As we are launching this service in Lahore, Karachi and Islamabad so our Head Office will be located in Lahore along with Regional Offices in Karachi and Islamabad.

We shall distribute our products through our Franchises that will be located in different areas of these cities. Following is the detail of Franchises:

Karachi Lahore Islamabad:

: :

10 Franchises 7 Franchises 5 Franchises

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MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM. The connection can only be purchased from the franchise and bills will also be deposited here. The Head Office will monitor all the activities of the franchises and stock of devices will be issued against a security for each device.

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DISTRIBUTION STRATEGY:

We will use EXCLUSIVE DISTRIBUTION STRATEGY whereby our product will be available at selected outlets and they will be dealing exclusively in our products.

PROMOTION:

As this technology is introduced for the first time in Pakistan, we must make sure that people must get awareness of the product. For this, the service must be promoted in an appropriate manner. Following techniques will be used for promotion:

1) Print media:
We shall advertise our product in different newspapers like The News, Dawn , Jang, Nawa-e-waqt, and different magazines like Spider so that we can create awareness of the product among the customers.

2) Electronic media :
Electronic media is the most effective tool of promotion and advertising these days. It includes Television, Radio and Websites. We shall advertise our product in different channels that include news channels, sports channels, music channels and entertainment channels.

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3) Umbrella Selling:
Umbrella selling is the latest trend followed by various telecom companies to increase their sales by selling in various colleges, universities and markets. Thus, by following the same trend, we shall also promote our product to increase its sale.

4) Billboards:
To promote our product, we shall advertise our various packages on billboards located at important crossings and buildings of the three cities, where we are launching our product to position our product in minds of the customers.

5) Sponsorships:
We shall also sponsor various events including concerts and sports activities to promote our product. Sponsorships is a healthy activity that helps to promote the product.

6) Road Banners:
We will use road banners at the sides of all busy roads in the area. Each banner contains necessary information about our product like what new packages it is giving to its customers. The size of banner differs according to available location.

7)

Brochures:

We will also use brochures as a source pf promotion. Brochures will be available in the Franchise that contains the details of the services provided and also the price details of different packages.

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SALES PROMOTION: Sales promotion strategy may involve giving incentives to employees within the franchise to increase walk in sales. Furthermore, sales team will also be given a target of sales and if they are able to sell more then the target, they will be given commission on their salaries.

PEOPLE
Our Head office employees consist of:
CEO General Manager Manager Admin, Manager Finance Manager Sales Manager Marketing Technical Engineers CSR in call centers

Our franchise employees are:

Manager Assistant Manager Two CSR (Customer Service Representatives) One Accountant

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MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM. Two CSO (Customer service officers) Two field engineers Sales Team Junior staff

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RECRUITMENT:
We hire our staff on these bases. Communication skill Experience Personality Technical knowledge

TRAINING:
We provide training to our employee through: Case study Hand outs Demo Knowledge about new software, products and services

EMPOWERMENT:
We will also empower our front line employees including call centre employees and Customer Service Representatives in franchise to take certain decisions on their own in case of certain situations.

PHYSICAL EVIDENCE:
It involves layout of the head office and franchise which is as follows:

HEAD OFFICE:
Our head office is located at 4th floor Lahore Centre, Main Boulevard, Gulberg Lahore. The Head Office will have offices of Managers of Admin, Sales, Marketing and Finance Department. There will be a call centre to provide information and listen to the complaints of customers. Technical and field engineers along with Research and Development team will also have its office located here.

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LAYOUT OF FRANCHISE: 1) Area: The franchise is spread on an area on 1200 sq feet Its dimensions are 100ft x 120ft.

2) Managers office: The managers office is located at one corner of the franchise from where he can get whole view of the franchise and can keep an eye on all the activities taking place. 3) Customer Service Representatives: Two customer service representatives will be providing necessary information to the customers and guiding the customers according to their needs.

4) Cashier Room: A cashier room will be at one corner of the franchise for the facility of the customers to deposit the amount of their bills and to make such other payments. 5) Store room: There will be a store room at the back of the franchise to keep the stock of the device (modems) to be sold to customers at the time of sales.

PROCESS
The process involved may be categorized as:

a) Standardized b) Customized SUBMITTED BY: DRAGON WARRIOR GROUP.

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a) Standardized process:

It is a process or service that is same for every customer. The company serves in a same way to the customers.

For example, it a standardized process for each and every customer to fill in the form with necessary personal information and provide a copy of his National Identity Card to get benefits from the service.

b. Customized process:
It is a process that is performed according to customer requirements. For example, a customer may select a package of his own choice depending upon: Speed required Monthly download limit

Flow of Activities: The process of providing service follows the following flow of activities:

a) Firstly, the customer is given a form in which he has to provide the

personal information as name, telephone number and address.

b) The customer also has to provide a copy of his National Identity Card. c) The customer can get the service either by making lump sum payment in
cash or by cheque.

d) In case of any complain, customer may contact the franchise . e) If he is not satisfied with the service he may return the device and get his
cheques back.

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f) We are looking forward to provide quality service and satisfaction to our

customers.

IMPLEMENTATION PLAN
Sales Objective:
During our first year, we will achieve a sales target by virtue of which we can reach breakeven point. This can be done through effective positioning of the product in minds of the customer. As we have to incur heavy initial cost for the launching of the product, we are focusing on sales equivalent to our breakeven during first year.

Marketing Objectives: SUBMITTED BY: DRAGON WARRIOR GROUP.

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We are focusing on capturing 40% of market share of DSL users within Lahore, Karachi and Islamabad. This can be done by effective marketing that create an image among minds of the customers about this new product.

Promotional Activities:

We will promote our product through electronic media, print media, road banners and billboards. In our promotional activities, we will be targeting businessmen and students who need to carry their internet with them all the time.

BUDGET:
Initial Investment:
We have to bear initial cost of getting license from THREE company which is a part of Hutchison Whampoa i.e. 10 million $ that will give us the right of using its name, satellite network and products within Pakistan. Our other investment will be construction and renovation of Head Office which is Rs15 million. For the construction of regional offices, we will need Rs10 million.

Working Capital:
Our working capital requirement will be as follows:

a) Marketing expense = b) Salaries = c) Rent for use of telecom network = DRAGON WARRIOR

Rs 70 million for first year Rs 15 million Rs 100 million per annum

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a) Marketing Expense:
As we are launching this product for the first time in market, we need to focus heavily on our marketing and promotional activities to position our product in customers mind. For this, we have kept an appropriate share for marketing expenses.

b) Salaries:
Besides other expenses, major portion of our expenses will comprise of salaries of managers and employees of marketing, admin, finance and technical department.

c) Rent for the use of telecom network:

We will not set up our own network to provide wireless internet service to our customers, rather we shall use existing network of telecom companies and pay them annually for the use of their network.

FRANCHISING

In total we shall have 22 franchises in Lahore, Karachi and Islamabad located in all areas accessible to people. All these franchises will run according to rules and regulations of company. These franchises will be sold out against some security i.e. Rs 1.5 million for each franchise and will be given commission of 10% on each sale. Furthermore, they will also be given commission of 5 % on amount of bills deposited within the franchise.

Sales Forecast:

Total internet users

4 million

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MARKETING PLAN FOR LAUNCHING A 3G TECHNOLOGY USB MODEM. Broadband & DSL users Target Market (40 %) = Approximate sales REVENUE for first year Operating expenses = = 600,000 (approx) 240,000 100,000

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= 100,000 x 3000 = 300,000,000 = (185,000,000) = 115,000,000

Profit

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CEO
Managing DIRECTOR

Director Finance

Director Admin

Director Marketing

Director Sales

Manager Accounts

Manager Finance HR Manager

Manager Research & development

Marketing Manager

Manager Sales

Accounts staff

Manager Operations

Marketing team

Financial Analysts

Deputy Manager Finance

Manager Technical Engineers Manager Call Center Manager Franchises

Chief Engineer Field Engineers

CSR

Franchises

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FEEDBACK:
We will give feedback through following sources:

Call centers:
In case of any complaint or feedback, customers may call our call centre and provide suggestions which will be taken into consideration by management and other authorities.

Websites:
We will also get feedback through our website where customers may provide important suggestions for improvement of service. Furthermore, there will be various discussion and feedback forms available on website which would provide important information to us,

Employees:
Employees are also an important internal source of providing feedback whose suggestion will help improve the quality of service to be provided to the customers.

Franchise:
We will also have suggestion boxes in our franchises where customers provide feedback and suggestions regarding our service and these points will be taken into consideration by the management.

Research and Surveys:

We will also conduct research and surveys whereby we shall get feedback from our customers and implement the results in our strategies to improve the standard of our service and provide customer satisfaction.

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CONTROL

The feedback from call centers is reported by Manager Call centers and that through franchises is reported by Manager Franchises to Manager Operations. Manager operations ultimately reports to Manager Admin who along with Managing Director implements it into strategy. While formulating strategy, it is also ensured that is it according to the mission and objectives of the organization. Furthermore, an internal audit system will be introduced in the organization that ensures smooth working environment and prevent any malfunctioning within the organization.

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