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MARKETING MANAGEMENT

REPORT

ON

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FASTEST NET SERVICE PROVIDER

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MBA -4 (D)

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We are very thankful to our teacher, who gives us a chance to work on this report of integrated marketing communication. Before going to a practical field we thought that IMC process is an easy to describe but when this report was assign to us by our instructor SIR IFTIKHAR, we find it quiet difficult and challenging to us.We learn a variety of things in the guideline of respected Sir IFTIKHAR . He gives us a proper guideline as well as the way how to perform our work practically.

We also thank full to all of others who provide us any sort of guideline and encourage our work.

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TO MY PARENT WHO WORK HARD AND ENCOURAGE ME TO GET EDUCATION

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this report contain a new launching net INTER LINK marketing plan as well as the information about

technical staff in forming a internet service provider company.

The report covers the technical requirement as well as marketing aspect of the formation of ISP Company.

The report also covers the costing and the plan of HRM requirement of an ISP company

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TABLE OF CONTENTS

Internet development process 3- 5 Methods for managing information of Internet 6 History of ISPs operating in Pakistan 6-11 Gernal feature 12 Market trends 14 Inter link company introduction 15 Business mission statement 16 Important and use of inter link net 17-20 Barriers in internet market for interlink 20 Department and resources 21-22 Main function of business 23 SWOT analysis of interlink net 24 Legal issues of interlink 25 Interlink setup 25-27 Costing of inter link net 28-32 Marketing strategies in interlink 33-34 Distribution 34-37 Marketing mix – product 38-39 Marketing mix – promotion 40-41 Media objective 41-42 Advertisement 43 Promotional mix 44-47

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Internet Development

History of the Internet

The start of the Internet resulted in some imaginative thinking by people in the early 1960s that saw immense possibilities in allowing computers to share information on research and growth in scientific and military fields.

1962- J.C.R. Licklider of MIT, first predicted a worldwide network of computers and moved over to the Defense Advanced Research Projects Agency (DARPA) in late 1962 to help develop it.

1965- Lawrence Roberts also of MIT linked two computers together located in Massachusetts and California over dial-up telephone lines.

1966- Roberts moved over to DARPA and developed his plan for ARPANET. (Advanced Research Projects Agency)

1969- The Internet was brought online with a contract held by Advanced Research Projects Agency (renamed ARPA) which at first connected four major computers at universities (Stanford Research Institute, UCLA, University of Utah, and UCSB).

1970- MIT, Harvard, BBN, and Systems Development Corp (SDC) in Santa Monica, Cal. were added. NASA/Ames, Mitre, Burroughs, and too many more to list.

Realistically, the Internet was designed to provide communications that would work if some of the sites were destroyed by nuclear attack. This was needed to keep communication open during vital periods. If one route was not available, routers would direct traffic around the network via alternate routes. There were no home or office personal computers in those days, and anyone who used it, had to learn to use a very complex system.

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1972- Ray Tomlinson of BBN modified e-mail for ARPANET. He chose the @ symbol from the symbols on his teletype to link the username and address.

1973- To enabling logging on a remote computer, the telnet was developed. This application is used to connect to remote computers, usually via the telnet port. For example, when you "telnet in from home to check your mail at work", you are using telnet to connect from one computer (your computer) to another computer (work's computer) commonly in a different location.

1978- Unix to Unix Copy Protocol (UUCP) was invented at Bell Labs. Usenet was started in 1979 based on UUCP. Discussion groups also called news groups provided means of exchanging information throughout the world. Many Internet sites took benefit of the accessibility of newsgroups. It was a momentous part of community building that took place on the networks.

1986- The National Science Foundation funded NSFNet (The National Science Foundation Network) as a cross country 56 Kbps backbone for the Internet. They upheld their sponsorship for nearly ten years, laying down rules for its non-commercial government and research uses.

1989- An archiver for ftp sites named Archie was created by Peter Deutsch and his team at McGill University in Montreal. This software would sporadically get in touch with all known available ftp sites, make a list their files, and continue to build a searchable index of the software.

1989- To make the net easier and more understandable to use, Tim Berners-Lee and others at the European Laboratory for Particle Physics, more popularly known as CERN, developed a new protocol. This protocol, also known as the World Wide Web, was based on hypertext. Hypertext is a way of a system of inserting links in text to link to other text.

1991- The University of Minnesota wanted to develop a simple menu system to access files and information on campus through their local network. The first friendly interface to the Internet was developed there

1993- Marc Andreessen and his team at the (NCSA) also known as the National Center For Supercomputing Applications developed a graphical browser called Mosaic. After that Marc Andreessen lead the development of another successful graphical browser called Netscape. Microsoft soon after developed its Microsoft Internet Explorer.

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1998- Bill Gates released Windows 98 with the Microsoft browser that was incorporated into the desktop in June of 1998.

1992- The first national commercial online service to offer Internet access to its subscribers was Delphi. It opened up an email connection in July of this year and full Internet service in November.

1993-Present- 56K modems were the most commonly used speeds used and the providers who are offering them are growing steadily. 56K is not a fast connection and can only carry low quality multimedia, such as sound and video. New technologies have developed cable modems, DSL (digital subscriber lines), and satellite which offer faster and a more reliable connection

In 1988 soon after the completion of the T 1 NSFNET backbone, traffic increased so quickly that plans immediately began on upgrading the network again.

In 1991 CSNET (which consisted of 56Kbps lines) was discontinued having fulfilled its important early role in the provision of academic networking service.

In 1992 Internet Society is chartered. Worldwide Web released by CERN.

In 1993 Inter NIC created by NSF to provide specific Internet services

In 1994 no major changes were made to the physical network

In 1995 the National Science Foundation announced that as of April 30, 1995 it would no longer allow direct access to the NSF backbone.

In 1996 most Internet traffic is carried by backbones of independent ISPs, including MCI, AT&T, Sprint, UUNet, BBN planet, ANS, and more. 1997 holding 19.5 Million Hosts, 1 Million WWW sites, 71,618 Newsgroupscurrently the Internet Society, the group that controls the INTERNET, is trying to figure out new TCP/IP to be able to have billions of addresses, rather than the comparatively limited system of today.

Methods for Managing Information on Internet:

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World Wide Web E-mail FTP Usenet Telnet MIRC Mailing Lists YAHOO messenger Hotmail messenger etc

The above all method becomes necessary method in these days because all these are used in various ways in different field. The E-mail is one of the most important among them. The world wide web pages are also most important among all of them .WEB pages are the best way to communicate the information as whole and sole about a single company as well as group of companies. It is very important that all these communication methods are related to inter net. The inter net could be provided by ISP.

Local HistoryPakistan

In 1996 Brain NET works was established one of the pioneers in Internet services

Incorporated in 1996 Fascom is a public limited company with an authorized capital of Rs. 200 million.

COMSATS started its Internet Project in January 1997 with Points of Presence (POP) in three major cities of Pakistan, i.e. Karachi, Lahore and Islamabad

In March 1997 Cyber. Net had made a name for itself as one of the leading ISP’s in the country within a short span of three years.

Formed in March 1999, Paknet Limited a fully owned Subsidiary of Pakistan Telecommunication Company Limited (PTCL) started commercial operation in January 2000

Now at the present there are more then 112 service providers in the market, from giants to low profile .

This indicate that the internet service provider have a great potential in Pakistan and it is also noted that Pakistan have some others potential aspect in internet field.

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Pakistan net industry:The Internet service was deregulated in the year 1995, when a few organisations from the private sector were granted licenses to launch the service. Thereafter, there was a loot sale for the issuance of licenses. PTA issued a total of 118 licenses without conducting a market study, assessing the actual market potential and educating the new applicants about the viability of the business. 

Since the start of Internet was easy, because of low initial investment and space requirements, the investors rushed to this new avenue without conducting market and feasibility studies as happens in most of the business areas (textile and sugar industry boom for example) in Pakistan. It was (supposedly) attractive, as the revenue was projected to be very high and the market was assumed to be all time expanding. The hidden costs were ignored, ongoing investment requirements for continuous expansion were not considered, and above all, huge number of new entrants was never accounted for. 

The total private sector investment in the industry is estimated to be over PRs 2.5 billion corresponded by a proportionate infrastructure investment by PTCL. According to PTA figure as published in April 2002, the total number of subscribers was about 417,000, which may be close to 0.5 million by now. The actual number could be even lower as a large number of subscribers use multiple ISPs. The limited general consumers market is dominated by five large ISPs, who share about 48 per cent of the total, using about 42 per cent of the resources. The rest of the pie (52 per cent) is shared by 55 ISPs, using 58 per cent of the resources. The following table gives a summary of the subscribers and resource distribution. 

The market share of most of the ISPs is less than 1 per cent, and their presence is generally limited to only one city. About 80 per cent of the subscribers are concentrated in three major cities i.e., Lahore (25 per cent), Islamabad (11 per cent) and Karachi (44 per cent). The rest of the 20 per cent accounts for other small cities and towns. 

The limited demand and larger supply has resulted in a cut throat competition, pushing the ISPs into a severe price war. Despite the fact that the minimum average cost per hour ranges between PRs 12 - 15, the average sale price for most of the ISPs ranges between PRs 5 - 10 per hour, resulting in negative cash flow. Since the market growth, both in terms of size and usage, is not enough to absorb the infrastructure capacity installed, the ISP industry in Pakistan is facing the same challenge as the telecom industry is facing worldwide

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because of overcapacity. Under the circumstances, the large ISPs may be earning some because of not being able to achieve the economies of scale. The deployed resources are scattered all over with limited subscriber base, which is not even enough to meet the fixed cost. Under the circumstances, the same pie, the growth of which is very slow, is being shared by disproportionate number of ISPs. The current usage per subscriber is only about 15 hours per subscriber per month. The usage includes chatting and messaging (40 per cent), porno surfing (15 per cent), IP telephony (20 per cent), entertainment etc. (15 per cent) and research and information (10 per cent). 

Internet is a research tool being major source of information for students and researchers, an e-commerce tool for business community and a media for messaging, communication and entertainment. The mode of communication is English language. Despite its usefulness, Pakistan market is not responding well for the following reasons. 

• The major internet market comprises of the students, who can read and write English, primarily from English medium private schools. A small number of graduate and postgraduate students from government institutions also join the community. The size of this market segment, which constitutes about 90 per cent of the subscribers, becomes limited because of language barrier. 

• The education in our institutions, including the private sector schools, is not research oriented, thus use of internet in the student community is mostly in non productive areas, which does not ensure a regular and extensive use. E-mail, chatting cannot continue for longer hours. 

• Internet is a monster of information. The users are lost in search of specific information by thousands of websites. Exploring these sites and reaching the desired one is a laborious and frustrating job. The user keeps counting the minutes being charged, while going through the most likely sites. 

• VOIP was another major use of Internet, which could not continue at the same pace because the service providers like Dialpiad, Nt2phone etc. started charging, and the PTCL started blocking these sites. 

• A large majority of population cannot afford to buy the computer, do not have the telephone connection or even cannot afford additional spending on internet.

 • E-commerce platform is yet not ready. There are neither secured payment systems nor any clearing houses established. The banking

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sector, which plays a major role in this respect, is long way from even being computerised. 

• The ISPs are primarily playing the role of retailer i.e. buying the bandwidth in bulk and selling it in retail. They are not adding any value to arouse the interest of the user and keep him connected. No money is spent on R&D for this purpose. 

Given the above barriers and larger supply of ISPs than the demand. 

There is a need to take serious steps by the concerned corners including educational institutions, the government and more importantly the ISPs themselves. Some of these steps are of long-term and short-term in nature. Some suggestions are given as follows in this respect: 

The smaller ISPs should join hands and form one or may be two (limited) companies, to which they become shareholders. This way the number of ISPs will reduce to, 6 to 7 only. The resources will be pooled and instead of competition with each other, and the larger ISPs individually, they will be able to compete with larger ISPs. Overheads will be cut down; economies of scale and operational efficiencies will be achieved. This new company having an immediate market share of 52 per cent should be run by professional management to achieve the desired objectives. The company will have immediate presence in all the major cities and will be able to offer roaming and other value added services immediately. 

The ISPs should start R&D and offer value added services, like development of portal of various areas. For example, a portal for engineering students, having engineering related educational information and links etc., could provide ease for the engineering students. Similarly, portals for medical students, business community, welfare organisations and social services can be developed, and may be offered, even on subscription. To attract the corporate sector, DSL or Wireless Broadband services should be launched either by private sector, PTCL or under a joint venture in all the major cities at low prices. 

The syllabus of the schools must introduce a compulsory subject on Information Technology, including Internet at least for class 8 to 10. The education system should be turned into research-oriented system, where students are asked to prepare research papers and conduct case studies. The government should encourage setting-up computer manufacturing industry by giving incentives. The Internet community centres should be established for poor. We must remember that

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communication technology is converging into Internet, and we have to be prepared for that. We must take all possible measure for our benefit, our country and our generations to come.

% Share

ISPs Bandwidth Ports Subs

Paknet 18 15 21

CyberNet 5 11 9

Brain net 12 7 7

World On Line 5 7 6

Supernet 2 2 5

Subtotal 42 42 48

Rest (55) 58 58 52

Total 100 100 100

ISP’s In Karachi

Leaders: Hamdard net www.hamdard.net.pkComsats www.comsats.net.pkCyberNet www.cyber.net.pkFascom www.fascom.com NetsollR www.netsolir.com Paknet www.paknet.com.pkSuper Net www.super.net.pkZaib net www.zaib.net.pk

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Intermediate Reputation :

Gerry’s Net www.gerrys.net.SSUET Net www.ssuet.net.Web Net www.webnet.com.pkWorld Tel www.wtmeca.net Zoooom Net www.zoooom.netDigicom www.digicom.net.pkIBM www.ibm.netCompuNet www.col.com.pkSat Net www.sat.net.pk

Low profile :

Asia Online www.aol.net.pkBreeze Net www.breeze.net.pkCube XS www.cubexs.net.pkCyber Access www.cyberaccess.com.pk Crestar Net www.crestarnet.netGemnet www.gem.net.pkGlobalnet www.global.net.pkLogon www.logone.netInfoNet www.inet.com.pkNet Asia www.netasia.com.pkNetLink www.nettlink.net.pkPienet www.pienet.netGlobal www.global.net.pk . Robo Net www.robonets.comSdnp www.sdnpk.orgShoa Net www.gerrys.net.pkSilverSoft www.pak.netTry Net www.tryinter.net

General Features of ISP 56 kbps modem support. Direct satellite connection to Internet backbone. Seamless connectivity to the most major backbones. 100% digital network. 100% PRI lines. ISDN support of 64 kbps and 128 kbps Provisioning for 3000 lines.

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Provisioning for fiber optic connectivity. DEC servers with 400-500MHz processors Redundant servers Redundant power supplies Firewall security Password security Dedicated dial-up port. Leased lines. Dedicated router access ports. Shared router access ports. Corporate E-mail services. Client server application development Virtual web hosting Personal web hosting Business critical web hosting (shared) Business critical web hosting (dedicated) Col-location of dedicated servers. 2MB or higher speed connection available for dedicated servers

located in USA. Electronic commerce with fully automated credit card sale and

processing.

Bandwidth Charges

Installation Expenses

International bandwidth Charges/ Months

DXX charges/ Month

Sources

1997 Rs. 300000 $75120 Rs. 480000Half circuit from satellite

1998 Rs. 300000 $56333 Rs. 480000Half circuit from satellite

1999 Rs. 300000 $50700 Rs. 219173Half circuit from satellite

2000 Feb

Rs. 300000 $32825 Rs. 219173Half circuit from satellite

2000 July

$ 3000 $30000 Rs. 55000One circuit from under sea cable SMW-3

2000 Rs. 300000 $15000 Rs. 55000One circuit from under sea

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Sep cable SMW-3

2001 Jan

$ 3000 $22500 Rs. 55000One circuit from under sea cable SMW-3

2001 May $ 3000 $15000 Rs. 55000

One circuit from STM-1

Main Business Function of ISP

Internet services provider Web development Who hosting (shared and dedicated) Internet marketing Internet training Intranet development Domain registration Fax services Co-operate mail services E-commerce Web designing with high-end database development,

connectivity and web interface Banner hosting

Market Trends

The Internet services market is among the fastest growing industries in the world. It will improve bay by day in these days in all over the world. it is also important that the Pakistan have to face same sort of trend as all over the world face.

A Dataquest study reports that Internet services market revenue reached $11.3 billion worldwide in 1997, a 50-percent growth for the year 2000 and more over same trend in coming feature years.

It is reach more then $40 billion by 2002 According to Board watch, the number of ISPs I North America

has grown from 1447 in February 1996 to 4470 in February 1998.

Market Analysis

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The above table show us the market development in during the 10 years in Pakistan .the market rapidly grow in 1990 and follow the same market trend that follow the all over the world .The interlink net establish because of these trend and try to fulfill the requirement of industry and Pakistani market.

1993 1998 2002No. of ISP 02 13 More than

30Copy of Cities

02 13 More then 32

No. of Users 3000 pc 20000 pc

500000 pc

Rate/ Hour Rs. 100 Rs. 35 Rs. 8-40

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COMPANY INTRODUCTION:

In 2003, July this company was establish under the private sector law. The company takes approval from an internet authority in Pakistan.

Member of board of governors

ChairmanIftikhar munir

DirectorWaqar Uddin usmani

Board of governorsShakaib a rehman

Zakia chodary

Ajaz ali shah

Zulfiqar hasa

Atif hasni

Ali raza

Noman saghir

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Business mission statement:

The company believe We are committed to leadership in inter net market through competitive advantage in providing the highest quality internet services to our customers, based on:

Professionally trained, high quality, motivated workforce, working as a team in an environment, which recognizes and rewards performance, innovation and creativity, and provides for personal growth and development

Lowest cost operations and assured access to long-term and cost effective supply sources

Sustained growth in earnings in real terms

Highly ethical, safe environment friendly and socially responsible business practices

The company believes in not only profit maximization but also on social welfare.

Interlink net aims to interact directly with its consumers. Its goals are consumer satisfaction and making its consumers feel that the money spent is worth the product. In comparison, it distinguishes its sales objective as achieving greater penetration in terms of sales volume and market share.

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Important of interlink net:

No body can deny the fact that net is become an essential thing in today life. The interlink net provide a 24 hours in 7 day a week service .it is also used fiber optics technology as well as the complete DSN connection.Concept and used in interlink net: The Internet is truly an amazing tool that allows communication and data sharing throughout the world. Ever wonder how the Internet works? Not many Internet users do, but for those with the inquiring minds read on. The interlink net provide this facility for their consumer that how inter net work.

What's A Server/Client?

By using the interlink net we only used the concept of client and server In order to connect to a home starting page or an Internet website, you have to connect to something that is called a "server". These servers work all night and all day, 24/7, unless there is a problem. Interlink net have its own Servers send information and data back and forth. Internet users that request information from these hardworking servers are called "clients". The computer you are on using right now is a client that has requested information ISP-Connections server of interlink net.

Computers Talk to One Another By Using Protocols

The interlink net servers and its clients communicate with each other through a computer speak (languages) called protocols. When you are surfing the Internet from web site to web site, have you ever noticed that every single web site address starts with "http://"? This stands for "hypertext transfer protocol", which is how the World Wide Web works. There are several other protocols for electronic mail, computer file transfers and much, much more. All these work very well on interlink net.

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Each Computer Has a ISP Address:

Packets of computer information are sent from computer to computer using numerical addresses called IP addresses. (Kind of like each computer has it's own P.O. Box number).The IP address tells each computer where the packet came from or where it needs to go. An IP address is a series of four numbers connected by dots. For example, a servers packet could read something like this: "123.345.666.1".Finally, Internet Browses Enable You To See/Read This Information

In order for a client to see and view the information/data that a server sends, an Internet browser is needed. The leading Internet browsers such as Internet Explorer, Netscape, Opera and others translate the information a server sends to a client. It's all done nice, neat and easy for the Internet users viewing pleasure.

Compare high speed dial-up Internet access providers. Each high speed dial-up provider has special technology integrated into their software that allows you to connect to the Internet at faster Internet speeds then ever before. Best of all, setup is easy and the more you use your high speed connection, the faster it gets. You will notice the speed difference!

What's gets accelerated: HTML, Markup, Javascript, Graphics and Email.What does not get accelerated: Steaming media, audio, video, uploading and downloading.

With a high speed Internet provider, enjoy these outstanding features:

Internet connection speeds up to 50% faster than a standard dial-up modem.

No new equipment is required - use your current modem and phone line.

No contracts, set-up fees, commitments or cancel fees.

And the interlink net is provide a high speed internet services I all over the Pakistan .the reason behind that is that it is contain fiber OPTICS cable.

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How Fast/Benefits of a Satellite Internet Connection?

Satellite broadband is the only high-speed Internet technology that's available everywhere in the United States. Compare to a typical dial-up service, the difference in the amount of speed is night and day:

You can download software, streaming media, videos in minutes. There's no more waiting for web pages to fully finish loading.

They are typically done within a couple of seconds. Always on Internet connection - no logging on or off.

In Pakistan we interlink are going to introduce this facility in coming soon and we hopeful this facility introduce a new trend in Pakistan.

Minimum PC Requirements/Operating Systems

Interlink net only works with the windows operating systems of Windows 98, Windows Me, and Windows 2000 and Windows XP. The minimum PC system requirements are as follows:

Pentium II 333 MHz or faster 64MB RAM (Windows 98SE and Windows Me); 128MB RAM 20MB of free hard drive space Analog modem - used only once for commissioning the account One available USB port

These all thing are easily available in these areas of Pakistan and we provide facility for these features.

Customer Service and Account Activation

Inter link net 24/7 toll-free customer support for your convenience. There are online facilities and frequent issues to browse while troubleshooting technical questions. Account activation takes place after all equipment is installed, and an Internet connection is established.

These all above things required a proper ISP service and the INTERLINK NET provide these facilities as much as posible. The services provided by INTER LINK NET is quite good and well because of the following features.

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Fastest because of fiber base technology

Innovative technology

Configure with your pc

Client service available on 24 hours

TREND AND BARRIERS IN CREATION OF INTER LINK NET:

Trends and Barriers Government initiative Teledensity Copyright violation Insufficient phones PTCL monopoly Bad consequences The interlink net face the all following sort of problem that a other company faces in these days in the net services industry. But the internet link hope full that they competent their competitor very well and successful because of their service and the highly qualified staff.

Interlink net Future Prospects An increase in the no. and type of serves being offered, resulting

in customized solution (which is one of the most important rules of e-business), thus a more pleased customer chain. The interlink net provide this facility to avail a long term customer relationship.

A rock solid improvement in the customer care. As more and more players will over into the business, customers will demand more support. People will no longer tolerate inefficient customer care and service delays and will require regular feed backs from the company, this will result in a better customer care then ever before and we (interlink net )also believe on this philosophy.

A decay in the price structure, resulting from both, increased competition an increase in the over all market as more and more people will star using the net and at the same time the time spend

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by an average user will increase. There fore the inter link net provide a number of packages to facilitate their consumer of net.

High quality, including a better bandwidth then ever before due to, lowering in the price of band, width, and also due to the fact that customers will no longer tolerate turtle speeds while browsing.

Departments of Interlink net ISPDevelopment (production ) yesIT. yesService yes Customer yes Co-operate. yesBilling yesMarketing yesSales. yesAccounts yesAdministration yesFinance yesTechnical supports yesNetwork operation yes

Resources of Interlink net ISP

Technology: fiber base, isdn base as well as 24 hours service.

Hardware Resources

Lucent, Us Robotics servers with speed of 400-500 MHz.

New bridge (Tigress Servers) with speed of 400-500 MHz.

Cisco hardware proxy with 5 harddisks of 64GB.

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6 channel RAID (Array of Magnetic disk) with capacity of 26 GB to 162 GB install with each server.

Windows CE based terminals. UPS

Automatic standby diesel generatorsScanners.

Software ResourcesDEC Unix (operating system for Dec alpha server)Sun solarix 8.0 (operating system for Sun server)Netscape enterprise ServerWindows NT terminal serverWindows NT server billing departmentOracle (Conman)Developer 2000Redundancy control softwareDevice Drivers

Resources of interlink net (IS-Provider)

Customers. Salespersons. Data bases.

Main Business Function of interlink net Internet services provider Web development Internet marketing Internet training Domain registration Fax services Co-operate mail services E-commerce

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PEOPLE RESOURCES

DATA RESOURCES

Web designing with high-end database development, connectivity and web interface

These all services are provided by the INTER LINK NET

INTER LINK NET SWOT ANALYSIS:

Strength Dedicated and professional team Superior customer support Powerful, direct connection via satellite to the Internet backbone Fully ISDN complaint hardware for faster information accesses Best modem to use ratio preventing busy signals 24 hours customer assistance 7 days a week Firewall security features to safeguard against hackers State-of-the-art network design using Sun, Cisco, and US

Robotics Equipment Licensed Netscape software for Internet accesses

Weaknesses Shortage of unlimited package We have to educate people because it is a new product.

Opportunities

Growing market because growing trend of people towards Internet

Only few superior competitors in market Due to the grand cases been disclosed of some competitors We can come up by taking customers into confidence and

putting the competitors out of business A globally recognized product

Threats

Continuation high rate of inflation, which will increase the price of services

With the enhancement of use of IT other superior competitor can also enter the market

New competitor must be welcomed, in this way awareness will create

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Competitive Analysis

Company Name

Weakness (if any) Strength Corporate Presence

Comsats Weak public presence

Strong gov. backing

Excellent

CyberNet No clear weaknesses

Customer Services

Very good

Fascom Weak customer care Corporate clients Excellent NetsollR Inefficient customer

careInternational fame

Good

PakNet Weak Customer care

Infrastructure Very good

SuperNet Weak customer care Corporate services

Very good

Legal Issue ISSUES RELATE TO ISP INDUSTRY:

HR Development, Training and Education IT in Government and Databases IT Market Development and Support IT Fiscal Issues Telecomm, Convergence and Deregulation Cyber Laws, Legislation and IPR

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IT and Telecom Manufacture and R&D Internet Software Exports E-Commerce

ISP SETUP OF INTER LINK NET:

Human Resource Needed

Installation staff Running Staff

A) Technical StaffB) Other StaffInstallation Team’s Recommended Skill Set Lan-Wan Developer / Manager: (x 1)

Minimum Experience : 5 Years +Minimum qualification : BE Electronics / Computers (4 yrs), CCNP, MCP

WAN Engineer : (x 1)

Minimum Experience : 3 Years Minimum qualification : BE Electronics / Computers (4 yrs), CCNP

Networking Administrator 1 : (x 1)

Minimum Experience : 3 Years Minimum qualification : 14 years, MCSE.Good command over IIS, NT 4.0, with knowledge of window 2000, command over Sco / HP UNIX.

Networking Administrator 2 : (x 1)

Minimum Experience : 3 Years Minimum qualification : 14 years, good knowledge of Sun Solaris is a must.

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LAN-WAN Support: (x1)

Minimum Experience : 1 Years Minimum qualification : 14 years, CCNA, MCPWorking knowledge of NT 4.0, IIS, and Sun Solaris

Internees : (x2)

Engineering college / University Students.

Hardware: (x2)

Minimum Experience : 3 Years Minimum qualification : FSc, A+ certified Experience of assembling servers, RISC machines and other Desktop computers. Experience in LAN and structured cabling.

Estimated time for laying out the basis infrastructure = 1 month

Other Staff’s Skill Set

Customer Service Manager : (x1)

Minimum Experience : 3+ years of management of supervisory experience, Managing.

Minimum of 10 employees. Minimum Qualification: Masters Degree in Business, Management, or related filed.

Candidate must have a native level fluency of English reading, writing and speaking. Storage English verbal and written communications skills are essential.

Marketing Manager : (x1)

Minimum Experience : 4-5 years direct marketing experience required.

Minimum Qualification: Masters Degree in marketing or business required. Must have strong analytical, communication, organization and interpersonal skills.

Sales and Support : (x10)

Minimum Experience : Should have a minimum of 1 year experience in an

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Identical. Position: Should have Good communication skills.

Minimum Qualification: 12,14 years depending upon experience

BUGETING AND COSTING:

Staffing Expenses: Position No Pay/month:

(Rs)Annual Pay: (Rs)

Customer Service Manager

1 20,000/- 2,40,000/-

Marketing Manager 1 20,000/- 2,40,000/-Sales/support 10 10x3500/- 4,20,000/-LAN-WAN developer Manager

1 30,000/- 3,60,000/-

WAN engineer 1 25,000/- 3,00,000/-

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Network Administrator 1 1 10,000/- 1,20,000/-Network Administrator 2 1 10,000/- 1,20,000/-LAN/WAN support 1 8,000/- 96,000/-Hardware Support 2 2x5,000/- 1,20,000/-Other staff N 30,000/- 3,60,000/-Total cost for an Year 23,76,000/-

Installation Staff’s Expenses:

Position No Pay/month: (Rs)

Annual Pay: (Rs)

Snr. Design Engineer 1 30,000/- 30,000/-Snr. WAN Engineer 2 2x30,000/- 60,000/-WAN support 1 15,000/- 15,000/-Senior LAN Engineer 2 2x20,000/- 40,000/-LAN support 1 10,000/- 10,000/-Hardware support 4 4x5,000/- 20,000/-Cable 2 2x5,000/- 1, ,000/-

Total Instillation staff cost 1,85,000/-

Grand total for human resource used: 23,76,000+1,85,000= Rs. 25,61,000/-

Media No. Estd. Cost (Rs)

Cost (Rs)

Bill Boards 10 10x35,000/- 3,50,000/-Banners 1000 1000x500/- 5,00,000/-Newspaper Adds 12 12x1,00,000/- 12,00,000/-Magazine Adds 12 12x10,000/- 1,20,000/-Printing etc. N 10,00,000/- 10,00,000/-Misc. N 10,00,000/- 10,00,000/-Total cost for an Year 41,70,000/-

Equipment/Software Cost Estimate

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Equipment: No. Cost(Rs) Total cost(Rs)

Function

Sun Sparc 250Enterprise Single processor

1 5,19,675/- 5,19,675/- AAA server

Sun sparc 250Enterprise Dual processor

1 10,26,675/- 10,26,675/- Mail server

Web server 1 350,000/- 350,000/- IISProxy server 1 250,000/- 350,000/- Web proxy serverAS 2522Cisco

1 4,87,000/- 4,87,500/- Bandwidth collector

2503 Cisco 1 1,30,000 1,30,000/- LAN accessAccess ServerMax TNTLucent

1 42,25000/- 42,25,000/- Distributor, user connection

Giga bit EthernetSwitch

1 250,000/- 250,000/- Backbone switch

Fast Ethernet Switch 1 60,000/- 60,000/- LAN distributorGeneral Purpose Administrative Computers (P-III’s)

1 8x35,000/- 280,000/- Administration

General PurposeAdministrativeComputers(P-IV’s)

2 2x45,000/- 90,000/- LAN server, print, file etc.

Pronter, scanner and Other administrativeRequirements

1+1+N 2,50,000/- 2,50,000/- General Purpose Equipment

Software(e.g.NT 4,IIS,TACACS etc.)

N 6,50,000/- 6,50,000/- Operating Systems, RADIUS etc.

Mounting jacks N 35,000/- 35,000/- Secure termination

Standing Rack Access server

1 2x10,000/- 20,000/- For holding AS

Wall Mounting rac(Routers)

2 2x10,000/- 20,000/- For holding routers

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(switches)Cable estd. N 1,00,000/- 1,00,000/-Total Equipment estimated cost

87,08,850/-

Est.Other Expenses

Unit Est.cost (Rs) Est.Ttal cost(Rs)Suite Rent 35,000/- 3,50,000PTCL Char 12x12,40,000/- 1,24,80,000/Furniture, and accessoriesEtc.

10,00,000/- 10,00,000/-

Overhead charges,Transportation, repair etc.

12x30,000/- 3,60,000/-

Total cost for 1 year: 1,41,90,000/-

Total cost of ISP setup plus one year operating cost

Cost type: Total cost (Rs)Other Expenses 1,41,90,000/-Equipment cost 87,08,850/-Total Staffing cost including Installation.

25,61,000/-

Marketing cost 41,70,000/-

Grand Total 2,96,29,850/-

Returu of Investment: ( ROI Analysis)

Logical analysis:

Total Expenditure in an year =Rs 2,96,29,850/-

Expected in next four years = Rs 2,96,29,850/-

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(After the 1st year) Rs 1,85,000/- ( installation Cost) Rs 87,08,850/-( Equipment cost) Rs 10,00,000/- (Accessories)

= Rs 1,97,36,000/-

Expenses in next four year =Rs 1,97,36,000/- X 4

=Rs 7,97,36,000/-Total minimum ExpenditureIn 5 Years =Rs 2,96,29,850/-

+Rs 7,89,44,000/-Rs 10,85,73,850/-

Avg. minimum return neededPer year = Rs 10,85,73,850/-

% 5 = Rs 2,17,14,770/-

Minimum no. of users requiredTo meet the expense throughConventional internet hrs salesWhen charged at an average =Rs 2,17,14,770/-Rate of Rs 25/hr. % 25 No. of hrs to sell/Year =8,68,590hrs

Marketing ResearchFirst phase of marketing if deployed correctly should attract users in excess of 1500 out of millions in Karachi.Keeping ideal situating in mind =1500(users) X 3 (hrs)U

4,500 X30 (days) 1,35,000 X12 (months) 16,20,000 X25 (Rs) =Rs 4,05,00,000/-

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Profit ratio for the first Year = 4,05,00,000/-%

2,96,29,850/- 1.367

X 100 36%

(Keeping the first year’s cost in mind) which can expected to grow hugely every year.

MARKETING STRATEGY:

Segmentation:THE interlink net segment the market in three major categories. The majority of user of net in these are young age especially students. Therefore the interlink net provide the package to those students in the market. The 2nd category that targeted by interlink net is the office persons and offices .the 3rd category include the genial public who can used the net service like for chatting their relative abroad.The interlink net provide them a good packages all of them to penetrate in these segment.

Packages

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StudentThe student package includes the cardST-1 100 Rs 10+2ST-2 200 Rs 20+4ST-3 500 RS 70+6

CorporateCT-1 9-5 PACKAGE 1000 RsCT-2 9-8 PAKAGES 1300 RsCT-3 UNLIMITED (1 MONTH) 1500 Rs

Gernal publicGT -1 UNLIMITED 1800Rs

Cards are also available of the following packagesST-1 ST-2 ST-3CT-1

The above packages also available in various places in KarachiThe above packages also available in various places in Karachi

DISTRIBUTION:

INTERLINK NET DISTRIBUTION PROCESS

THE Interlink net have a sound distribution system in the net market. We have provided license to sell our net to various shop in Karachi. We

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have a big distribution system of card of net in all stationary shops and on the big gernal public store and on computer shop and cafés.

DISTRIBUTION: Initially we distribute the interlink net in dividing Karachi from 5 basic categories Actually we selected these areas because of their population as well as their demand of net.

LOCATIONS:

1) F.B .Area 2) Gulshan-e- iqbal and nazima bad3) Defense and Clifton4) North karchi5) Gulistan-i-joherThese five areas are divided into further sub area to penetrate in the market. The selection of these above The Karachi is a big city and nobody can deny the fact that it is very difficult to target market properly in such sort of city.Our sell staff shifts the packages to different retailer store and gives them more margin of profit as compare to other. The card and packages are available in every big market as well as try to make available in every next two three district.We believe in fast service of available net as well as we will try to work hard to make possible all net cards at low cost.

INCENTIVES TO SHOPE KEPERS: The retail price card is give 10% profit margin on its price. On large sell of card the sell person as well as shop keeper both

get 20% on that sell. Corporate sector have a advantage to get the package from

authorize dealer that he will get some more discount on next packages.

DISTRIBUTION STAFF:The distributor staff of interlink net are well train and educated. They are hard working and good communication skill. We believe on quality not quantity there fore we know that these person have great important in our organization.

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The interlink net have 400sales staff that work for distribution in the sole and whole for the net distribution. It is important that these staff visit and see that either the product is available in that area or not. the inter link net also have good technical staff that work for customer services and also work for the company internal technical problem.

There are 140,000 outlets in Pakistan, which have net product. We try to cover as much as possible on the basis of our segment.Distributors are offered a margin of around 4-5% and retailers are offered a margin of around 10-12%. The distributor and retailer margins vary from one product size to another.

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Marketing MixMarketing Mix

ProductProduct

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The internet is the fastest growing industry in Pakistan same like textile . The interlink net provide the net that compete the competitor as well as the fulfill the user requirement.The interlink net is in introductory stage therefore we emphasis on more and more on promotional activities.

The interlink net is contain the core benefit as well as it contain the various feature and other aspect. Like the interlink net have a good quality net because its is available in same prices as available others net in the market.

It is also important that interlink net provide 24 hours net service. The main feature of our product is that we have complete DSN connection as well as the fiber base line for data transfer.

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INTRODUCTION GROWTH MATURITY

the interlink net have a feature that is a good quality net available in the market. The benefits offered by interlink net is that “high quality and high speed with 24 hors service” .the another important aspect of this net it is friendly in the used.

Line ExtensionsInterlink net is available in the following line extensions:

Interlink net have the student packages Interlink net have the corporate package Interlink net have the gernal public packages

They are available in the following sizes and prices:StudentThe student pakage includes the cardST-1 100 Rs 10+2

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Imagery

Benefit

Feature

ST-2 200 Rs 20+4ST-3 500 RS 70+6

CorporateCT-1 9-5 PACKAGE 1000 RsCT-2 9-8 PAKAGES 1300 RsCT-3 UNLIMITED(1 MONTH) 1500 Rs

Gernal publicGT -1 UNLIMITED 1800Rs

The packages have great important because it help us to segment the market as per requirement of the company.

Promotion

The promotion is the key element of any company it is becomes an essential need in these days. The interlink net also perform the same sort of promotional activities in the market.

SUSTAIN PREFERENCE

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The presentation of the product will be very important. Therefore

we make the packages according to the user of packages. Like

student packages are very colorful pamphlet as compare to office

packages pamphlets.

CHANGE HABITS

In response to consumer, interlink net played its role to compete, in

quality conscious market. The Brand interactions and Direct

Marketing activities would play a vital role to change the habits of

the consumers.

BREAK THE ICE

We are focusing the following activities to get the attention in the

market in order to competes the establish brands

1. Banners

2. bill board

3. news paper adds

4. magazine adds

5. other printing material

Media No. Estd. Cost (Rs)

Cost (Rs)

Bill Boards 10 10x35,000/- 3,50,000/-Banners 1000 1000x500/- 5,00,000/-Newspaper Adds 12 12x1,00,000/- 12,00,000/-

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Magazine Adds 12 12x10,000/- 1,20,000/-Printing etc. N 10,00,000/- 10,00,000/-Misc. N 10,00,000/- 10,00,000/-Total cost for an Year 41,70,000/-

We also select a proper media plan to show our adds.

MEDIA-PLAN Selection of the Program What time? Selection of the channel

MEDIA OBJECTIVES

The promotional campaign and advertising developed strong

association in the mind of consumers. As we have mentioned before

that we have preferred to the print media rather than electronic media

or others. The ad boards and banner are very important would be

entertainment.

TIME LINE FOR THE MEDIA PLAN

We selected the business magazine especial edition like Sunday and monthly. We also selected the universities magazine in order to get attention in new generation.

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REACH & FREQUENCY

The nationwide advertising inform about the reach and frequency. A

particular research company will provide the sample size of the

target population. The calculation of Gross Rating Point (GRPs)

provides the exact information about the see the ads in magazine

by target audience target market.

The magazines we selected are the business recorder, news

magazine , jung as well as hamdard magazines.

COMMUNICATION STRATEGY

Communication plays a vital role for making the perception or image in the mind of consumers. Being an internet company we should emphasis on the good communication with our consumer because once they have made expectations with our product, we must have to follow their expectations.

SINGL KEY MESSAGE

Bridge along the world

or

Interlink the world as global village

.

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GEOGRAPHICAL PRIORITIES

The geographical priorities cover each and every area of urban, sub

urban, rural areas of the country through the territorial media Channels

like local new magazine and papers like awaz , zamier etc. This media

provide information and enforcement to the consumers about the

brand.

ADVERTISING BUDGET

Media No. Estd. Cost (Rs)

Cost (Rs)

Bill Boards 10 10x35,000/- 3,50,000/-Banners 1000 1000x500/- 5,00,000/-Newspaper Adds 12 12x1,00,000/- 12,00,000/-Magazine Adds 12 12x10,000/- 1,20,000/-Printing etc. N 10,00,000/- 10,00,000/-Misc. N 10,00,000/- 10,00,000/-Total cost for an Year 41,70,000/-

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Promotion MixInterlink net is using Asiatic Advertising agency currently, due to international reputation. The promotion mix for interlink comprises of around 6 main activities. Different media are used in combination to increase effectiveness of promotion mix.

The promotion budget for these activities is calculated by the “percentage of sales method”. The promotion budget for the up-coming year is set in advance at the end of the current year. The budget is linked to a sales volume target. The budget is allocated according to various media and different promotion activities for every quarter. Sales volume is monitored primarily on a weekly basis to evaluate the result of promotional activities on sales volume. The budget might be reduced drastically, by as much as 10 to 40 % if it is observed that hypothetically 90 % of the budget has been spent, but only 70 % of the sales volume target has been met.

We have described the various promotional activities on the basis of budget allocation, in order of importance.

Outdoor AdvertisingFifteen percent of interlink net promotion budget is spent on outdoor advertising. Outdoors are now being used more by interlink

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for to increase out of home visibility in shops and in the streets. The various activities under the umbrella of outdoor advertising are:

Billboards Pole signs Spectaculars

Interlink net has about 10 hoardings all over the Karachi, and, one in Rawalpindi, and six in lahore. These spectaculars are located in Karachi at:

Airport Area Nipa Chowrangi Guru Mander Sabzi Mandi Water Pump Clifton Karima bad Five star clifton

The rentals for these spectaculars vary. Although they differ among various cities, the costs incurred are inclusive of KMC taxes, maintenance, erection charges, etc. On an average, a 90 x 30-ft spectacular costs the company an approximate sum of Rs. 2 to 3 million annually, whereas a 60 x 20ft spectacular costs about Rs. 1 million per year. The average rental for hoardings on national basis is about Rs. 50,000 to Rs. 60,000, for a 20 x 10-ft hoarding. The charges

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per square footage are dependent on site rental, structure and what the content of the hoarding is.

PrintTen percent of the promotion budget is spent on print media, which includes both newspapers and magazines. All types of local newspapers are used for various advertisements, depending on the purpose of the advertisement campaign. Similarly, different types of magazines are used for advertising.

Discounted Selling and Free SamplesTo familiarize consumers with the new blend of interlink net, five percent of the promotion budget is spent on discounted selling and free samples. In the words of the Brand Manager, it is used only if very confident that the promotion will be successful. It is used on a house-to-house basis in certain neighborhoods.

Miscellaneous Promotion ActivitiesSome other promotional activities commonly used by Lipton Yellow Label have been allocated five percent of the promotion budget. They include:

Mobile Marketing Units Mobile Field Units

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Trade promotion CCTV Cross Promotion (with “Click,” “Everyday,” and “ Surf Excel”)

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