Zong4 P’s of MARKETING

Presenters:

Uzair Mahboob Khan

Faizan Pervaiz

Introduction

Zong is the first international brand of China Mobile in Pakistan

The basic idea is to allow people to communicate at their free will! Making it a stress free environment where customers are not worried about Tariffs, Capacity Issues or Congestion.

Subscriber base :18.8 million(2013)

MARKETING MIX

Marketing Mix consists of 4P’s of Marketing

Product

Price

Promotion

Place

PRODUCT

It is seen as an item that satisfies customer wants and need.

Or

It is a tangible good or an intangible service.

PRICE• The price is the amount a customer pays for the product

PROMOTION

It represents all of the methods of communication that a marketer may use to provide information to different parties about the product.

PLACE• A practice involving the application of branding and sales strategies to

different regions and countries etc.

PRODUCT

Zong is a cellular Network that provides Postpaid, Prepaid, Web Portal, TimePey (Utility Bill Payment, Money Transfer etc.)

Zong has also emerged as the only Network in Pakistan that provides both 3G and 4G services for high end mobile users

PREPAID PACKAGES

Zong brags the lowest call rates in the country through its prepaid packages

Zong Flutter, Zong Economy package, Zong 45, Perfect package and Fast 50 provide range of Packages that customers can subscribe to according to their will.

POSTPAID PACKAGES• Postpaid Packages usually target Business Class

WAP Portal

Zong WAP Portal bring a wide range of tailored services

Games

Greetings

Music

Latest news

Information

TIMEPEY

Timepey is a service that adds the much awaited convenience to people’s lives.

The three main services offered include

1. Utility Bills’ Payment

2. Mobile Account

3. Funds Transfer

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.

It easily be said that, “The price is directly associated with the quality and brand name of the product”.(QSP)

PRICING OBJECTIVES OF ZONG

Survival

Maximum current Profit

Maximum market share

Main Objective stayed survival in the market upto 2012-2013 but now Zong has developed itself as a huge network in the country providing both 3G and 4G services.

PRICING STRATEGY

ZONG is offering its products and services at a low price, so ZONG is using COST LEADERSHIP STRATEGY because all the packages (postpaid and prepaid) are very low priced and other value added services are also very low in cost.

Zong 3G is one of the best services priced at a seriously low rate of 250 Rs.+Tax per month for 1 GB data usage.

Call and SMS packages are also provided at highly competitive rates.

Price Adjustment Strategies are implemented in order to keep up with inflation and other factors.

Factors in Price Setting

PRICE PLANNING

WHAT?

Low Call Rates

HOW?

By reducing existing call rates

WHO?

Low end users

WHEN?

All the time

PROMOTION

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

Information Advertising

It is often used when launching new package or service.

Reminder advertising

To stimulate the repeat purchase of its previously promotions.

oAdvertising media Zong is using television, radio, print advertising media to

disseminate its message

oAdvertising campaignAlong with its service debut, Zong launched a nationwide campaign composed of T.V commercials and print ads.

Strong Brand Ambassadors

Zong heir the most charismatic superstars in its advertisements. The tested method of having a pretty face holding a ZONG PACKAGE makes its advertising campaigns booming.

Brand ambassador (Like Syra Yousaf and Hamza Ali Abbasi)

Q: Method used by Zong for market testing of their service design?

A: Outbound campaigns Service suggestion head is added up in Workflow to see customers interest and also keeping record of it.

Q: What are the sales objectives?

A: Long-term earnings.

Q: What are competitive objectives?

A: Providing services that are unmatched.

Q: Critical Success factors of Zong?

A: Innovation and new offers.

INTERNAL FINDINGS AND PROBLEMS

a) Job rotation and advancement

b) Lack of staff

c) Unequal distribution of work

SWOT ANALYSIS

Weaknesses: Bad image with Paktel

Comparatively late entrant in market

Less man power

Strengths:• Low rates nation wide• Strong image of parent company• Network portability(over 5000 people switch their

network to Zong.)

Opportunities:

Only 1\3rd of Pakistani population is cell phone users so 2/3rd segments are still left to.

Threats: Competitors

Government Policies

PLACE

• More than 21 switches and 1100 KM network of optical cable

• ZONG invest more than $30 million in covering 11000+ sites

NETWORK COVERAGE

Almost all Pakistani cities and Villages are covered by Network

All Big Cities have 3G and 4G coverage

DISTRIBUTION STRATEGY

Franchises at very convenient places

First Cellular Company to implement fingerprint SIM issuance

LOGISTIC MANAGEMENT AND ZONG

• An integrated technology infrastructure in more than 1100 towns, villages, and countless remote destinations, including International Roaming in 43 countries through 300 partner operators.

4P’s SUGGESTIONS

From marketing point of view 4 P’s suggestions are:

Product: Functionality ,Quality, Brand ,Warranty, Service/Support

Price: Discounts, Affordability

Place: Channel motivation, market coverage, location

Promotion: Personnel selling, Increase budget for advertising