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Term Paper Fall – 2010 Mobilink Written by: Course Incharge: Dr. Kamaran Siddiqui

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Page 1: Mobilink Final

Term Paper Fall – 2010

MobilinkWritten by:

Course Incharge:Dr. Kamaran Siddiqui

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TABLE OF CONTENTS

Table of Contents...............................................................................................................2

Introduction:......................................................................................................................5

Need of Study:............................................................................................................... 5

Target Audience:............................................................................................................5

RESEARCH METHODOLOGY:..............................................................................................6

Introduction:..................................................................................................................6

Research Methodology:.................................................................................................6

Sampling Design:............................................................................................................6

Research Instruments:...................................................................................................7

Procedures:....................................................................................................................7

Introduction.......................................................................................................................8

Objectives of Brand Audit:.............................................................................................8

Scope of Brand Audit:....................................................................................................8

Approach Used for Brand Audit:....................................................................................9

Brand................................................................................................................................. 9

Brand (Self Analysis):......................................................................................................9

Product........................................................................................................................ 10

Classification of SBUs according to growth-share matrix.............................................10

Pricing Strategy Of Mobilink:.......................................................................................11

Industry Reviews..........................................................................................................12

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......................................................................................................................................... 14

Consumer Analysis...........................................................................................................14

Segmentation & Target market....................................................................................16

Competitor’s Analysis......................................................................................................17

Competitive Comparison Matrix..................................................................................17

SWOT Analysis of Mobilink..........................................................................................18

Competitors SWOT Matrix...........................................................................................19

Brand Inventory...............................................................................................................21

Brand Elements:...........................................................................................................21

Brand Name:.........................................................................................................................21

Urls :......................................................................................................................................21

Logos and Symbols:..............................................................................................................21

Slogans:.................................................................................................................................21

Colors:...................................................................................................................................21

Core Brand Value.........................................................................................................22

Quality:.................................................................................................................................22

Innovation:............................................................................................................................22

Customer-Friendliness:.........................................................................................................22

Coverage:..............................................................................................................................22

Marketing Program......................................................................................................22

Media:...................................................................................................................................23

Print media:..........................................................................................................................23

Sponsorship:.........................................................................................................................23

Events:..................................................................................................................................23

Philanthropy Activities..........................................................................................................24

Brand Portfolio Analysis...............................................................................................24

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Brand Associations:..........................................................................................................25

Consumer Perceptual Analysis.....................................................................................26

Brand Positioning.............................................................................................................27

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INTRODUCTION:

This project is about the brand tracking of Mobilink on Pakistani market i.e. to know

about the standing of Mobilink as a brand in comparison to the competing brands. It will

yield results as market standing, user perception, attributes associated with the brand,

current strategies of Mobilink and the grey areas for Mobilink.

NEED OF STUDY:

The sole objective of this brand report is to know about the brand

potency of Mobilink in the Pakistani market in comparison to other

competing service providers. The other objective is to put a spotlight

on the different cellular companies operating in Pakistan and the

perception of the users about them.

TARGET AUDIENCE:

As far as the Mobilink is concerned, it has no specific target audience because it is

catering the requirement of all the users through its different packages. Cell phone is a

requirement of every one so it also makes sense to launch multiple products to cater to

the requirements of several segments whether it is youth, ladies or corporate sector.

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RESEARCH METHODOLOGY:

INTRODUCTION:

The purpose of the research methodology is to carry out different methods of research

to accomplish the set research objectives pertinent to the brand tracking. For that

purpose, a set of questions have been made to inquire and analyze the responses of the

respondents.

RESEARCH METHODOLOGY:

The research methodology used in this brand tracking is qualitative as well as

quantitative in which we have not only used a questionnaire to know the responses of

the respondents of the sample group but also open ended questions asked from a set of

respondents at mobilink franchises to get a more flexible response from the

respondents. Secondary research methods are also used to get the information

regarding the competitors and Mobilink to get to know the market structure and the

standing of the cellular companies in it. Triangulation method is used to cross check the

results from qualitative, quantitative and secondary research to find the parity in

results.

SAMPLING DESIGN:

The target population belongs to every segment and class of life because cell phone

users belong to every class of population and we cannot discriminate the target market

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based on SECs. Subsequently, the sample selection is random and random sampling

method is used for sample selection to get the feedback of the users from all the

classes. The sample size used for the questioning consists of 250 respondents.

RESEARCH INSTRUMENTS:

The instrument used for the research in this brand tracking activity is primarily a

multipurpose questionnaire which comprises of open and close ended questions not

only to help in the quantitative research but also in the qualitative research as well. It

consist questions pertaining to the brand associations, brand recall, brand image,

projective responses and brand values. The reliability of the instrument is measured

through the triangulation method by comparing the results of all three research

methods.

PROCEDURES:

The data collection is through the questionnaire from a sample group of 250

respondents. The screening of the information acquired from these respondents is done

manually using MS Excel as a tool for data entry. All the information from the responses

is entered as per the frequency of respondents against the questions.

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INTRODUCTION

OBJECTIVES OF BRAND AUDIT:

The objective of this brand audit report is to measure the brand potency of Mobilink in

line with the competing brands. The specific issues faced by the brand in terms of

market conditions, saturation in the cellular market and the overall recession in the

economy will also be taken into account while studying the brand. Also, what sub-

products fall in the generalized master brand i.e. Mobilink and to which segments these

sub-brands are catering to

SCOPE OF BRAND AUDIT:

When speaking of the target audience for Mobilink, we should keep in mind that in the

world of today, cell phone is no longer a luxury as was the case in 90s but now, it has

become a necessity for everyone. So when we speak of cell phone target market, we

speak of all the socio-economic classes from A to E. The brand audit is limited to Karachi

only because of limited time and resources. But, in order to get a better understanding

of the market, multiple areas of the metropolitan are covered with a dynamic sample

population to get diverse views about the brands so as to get a better and augmented

understanding of the market perceptions about the brands.

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APPROACH USED FOR BRAND AUDIT:

The approach used for brand audit is mainly the survey through set questionnaire and

secondary research methods regarding their inputs on brand imagery & usage, brand

recall, brand perception, brand loyalty and brand awareness.

BRAND

BRAND (SELF ANALYSIS):

Pakistan Mobile Communications Limited, better known as Mobilink GSM, is a

telecommunication service provider in Pakistan. The company is Pakistan's leading

cellular operator with a subscriber base of 31.5m and market share of 31% in October

2010. Mobilink's Head office is located at Mobilink House, 1-A Kohistan Road, F-8

Markaz Islamabad. Mobilink's corporate postpaid package is sold under the brand name

"Indigo" and prepaid by the name of "Jazz". Mobilink started operations in 1994 as the

first GSM cellular Mobile service in Pakistan by MOTOROLA Inc., later it was sold to

Orascom, an Egypt-based multi-national company. In addition to cellular service, the

Orascom group is diversifying its service portfolio by setting up new businesses and also

expanding through acquisitions. Recently, they started offering DSL broadband through

a wholly owned subsidiary, Link.Net. Additionally, the company has also launched its

wireless broadband service through WiMax based technology under the label of

'Mobilink Infinity'. Technology is backed by Alcatel, and company is using a ZYXEL

Customer Premises equipment.

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PRODUCT

Following are the Mobilink product •

Jazz One

Jazz Budget

Jazz Ladies First

Jazz Easy

Jazz Octane

Mobilink Indigo

Mobilink PCO

BCG GROWTH-SHARE MATRIX

Companies that are large enough to be organized into strategic business units face the challenge of allocating resources among those units. In the early 1970's the Boston Consulting Group developed a model for managing a portfolio of different business units. The BCG growth-share matrix displays the various business units on a graph of the market growth rate vs. market share relative to competitors.

CLASSIFICATION OF SBUS ACCORDING TO GROWTH-SHARE MATRIX

Mobilink classifies it SBUs as followings

Cash Cow

Jazz Ladies First Mobilink Indigo Jazz Budget

These packages are low growth, high share products. These established and successful SBUs need less investment to hold their market share. They produce a lot of cash to support the other SBUs that need investment.

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Star

JazzOneThis package is a high growth, high share product. There is need to invest more for its rapid growth.

Question Mark

Jazz Easy Mobilink PCO

These packages are low share in high growth markets. They require a lot of cash to hold their share. Management needs to think hard about question marks it should try to build into stars or should be phased out.

Dog

Jazz Octane

It is low growth, low share product. It may generate enough cash to maintain itself but do not promise to be large source of cash.

PRICING STRATEGY OF MOBILINK:

Mobilink was offering Jazz connection for about 3000 rupees 5 years ago. Its market

oriented statement is “Aur Sunao” But through the passage of time now Mobilink is

offering Jazz connections for about 100 rupees. In 2002 Ufone which is one of the

leading competitor of Jazz introduced its prepay connection for about 2500 rupees. In

2005 Telenor came into existence in Pakistani market and offered its connections for

about 500 rupees. Then in 2005 Warid also entered the market offering its connections

for 250 rupees. In this way price war started between these telecom brands in the

market. Previously it was Jazz’s oligopoly as they offered their prices. In 2005 Jazz

offered a Cellphone plus connection and prepaid card implementing a product-bundle

pricing strategy for creating more attention and attraction. The major shift in the pricing

strategy came in when they started 30.second operations using the promotional pricing

strategy. In the early days Jazz was offering its sim-cards for a high-price using captive-

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product pricing strategy as its SIM-card is a main product that must be used along with

the cell phone. Initially Jazz’s call rates and SMS charges were also reduced using

discount and allowance strategy and initially directing towards promotional strategy as

the competition between cellular brands in the market grew faster. Recently Jazz

introduced its offerings of 0.99 per minute call rates in their “happy hour package”

which represents their operations with the promotional as well as psychological pricing

of their services. Through its happy hour package they are also operating with

promotional strategy as they are engaged in continuous promotion through their

offerings.

INDUSTRY REVIEWS

In the era of globalization and information society, the fundamental role of

telecommunication technologies cannot be underestimated. Although tremendous

growth has taken place in the Pakistan telecom sector but most of it can be attributed to

the cellular growth. Fixed line is still awaiting a takeoff. Similarly Value Added Services

have grown but are still a drop in the bucket. Now that the competition has been

introduced in the telecom sector some very positive impact have been observed on the

growth of the sector in a short span of time which is expected to continue to grow for at

least next five years if the daring investors influx continue as in the last 3 years. Our

Industry already has LL (Local Loop), WLL (Wireless Local Loop), LDI (Long distance and

International), and ISP (Internet Service Provider) players and WiMax; 3G cellular

systems are expected be a part of this Industry soon.

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ningThe Pakistan market has reached 100 million subscribers landmark with cellular mobile

tele density of over 60% (PTA press release Sep 2010).The growth slowed down in 2009

but has picked up again gradually. At 2006 year end the total subscribers were 48.2

million. In June 2007 the total mobile users reached over 63 million. Based on numbers

published at PTA website for 2007, the total number of subscribers (technically it is the

number of SIMs issued) was 76.6 million, a teledensity of nearly 49%. In 2007 the

average growth rate was about 2.5 million new subscribers each month! After second

half of 2007 it seemed as if the growth had slowed down but overall it was fine. One

remarkable achievement was by Zong (formerly Paketl) which launched very successful

campaigns towards 2007 end completed rebrand launch in April of 2008. Here’s a brief

description of the top mobile companies in Pakistan. At the top is Mobilink, the

Pakistani unit of Egypt-based telecom company Orascom. It has been operating in

Pakistan since 1994. Subscriber share is 31 % at the end of Oct 2010. Ufone, a wholly

owned subsidiary of Pakistan Telecommunication Co. Ltd (PTCL), is now under the

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control of Etisalat group of UAE. It has 20% of subscriber share and added the most lines

(2.4 million) from 2006-07. Warid, owned by the Abu Dhabi group of the United Arab

Emirates and sister of Wateen group is number 4 with 17.0% market of subscribers.

Recently it sold 30% share to SingTel. Norway’s Telenor, a recent entrant with about a

billion US dollar investment in Pakistan has been doing well, based on its recent earning

report. It has about 24% of the market share. Telenor stock is listed in the Oslo stock

market (TEL) and in US (TELNY.PK). CMPak (Zong brand), formerly Paktel, was the latest

target of foreign acquisition. After it got acquired by China Mobile it was rebranded as

Zong and launched one of the most successful and aggressive campaigns. Within a

matter of few months, Zong has achieved a 8 % market share.

CONSUMER ANALYSIS

The Pakistani mobile users are more price-conscious but in cellular sector they also

don’t compromise on the quality of voice. So, By taking the advantage of this

consciousness of the users mobile operators re enhancing product offering in the form

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of low rate packages and network expansion by installing boaster.

Mobile sector comes under verity seeking buying behavior by the buyer because it

occurs under the conditions of low consumer involvement and significant brand

difference. In this market, consumer has low involvement they perceive the brand

benefits on the basis price, voice quality and coverage. The reason for this is that their

ultimate objective is to communicate to other at for off place.

Buying is initiated by “communication purpose”. Everybody can enter in to buying

process by need of communication. In the regard of this communication media vehicles

play an important role in getting their service preferred by the users. These days there is

a rush of packages out in the market from the mobile service providers, targeting

different market segments and offering all kinds of discounts depending on who you call

or when you call. Off-peak timings have always been used by service providers to create

interest and to lure customers. So, customer seeks indifference among services provided

by these cellular operators and switch according to their desire. Factors that influencing

on customer switch age to other operator of mobile network are,

Price: Users use services of the operator to communication so on of the factor

influencing the customer switch age is price. A person in this segment seeks the prices

most important factor and operator of service are also offering verity of packages to

make the customer attract. Where the price of any product is low people change their

taste and divert towards that low price product.

Quality: After the price people prefer quality of voice second because they are paying

for the voice if the voice is not clear to them which they are paying for they defiantly

they switch to other operators.

Coverage: After the quality of voice second available factor for customer switch age is

coverage. Users perceive that the operator’s services are available to them where they

visit. If they find signal problem they may switch to more coverage operator in the

sectors

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Promotion: With promoting services that has factor too for consumer switch age. Fierce

promotion leads an image in the mind of the consumers that company offers many

servers and “a customer focus company”.

SEGMENTATION & TARGET MARKET

Segment one: Corporate cluster

SMEs cluster Business class segment

Professional cluster

Segment 2: Domestic users cluster

Consumer class segment Youngster cluster

Pakistan currently has one of the largest allies of young people in its history, with

approximately 25 million people between the ages of 15 and 24. Target market group of

cellular sector ranges from 15 to 64 percent which according to demographic profile of

Pakistan consist of 56.9% (male 48,214,298; female 46,062,933) of total population. As

in the Buying behavior we have studied that Female and male both contribute into

making decision for the purchasing of the brand. So the both genders would be in target

market.

In spite of this professionals are also Mobilink target audience. The Employment Status

categorizes majority (45%) as employees followed by own account workers (42%).

About one in ten workers (11%) are reported as unpaid family workers and one & a half

percent as employers. As far changes in the comparative periods, unpaid family workers

fall by some fractions, employees indicate some increase while own account workers

and employers remain on the same level. In the buying and sales of Mobilink brand also

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depends on these customers too. Along with the rise of urban consumerism, global

corporate such as Unilever, P & G, GlaxoSmithline and many small & medium enterprise

and local national companies emerges both manufacture and sell their products in

Pakistan. In manufacturing and natural resources, Shell and BP are present in addition to

the Pakistani state oil company. Honda, Nissan and Suzuki are among international

automotive manufacturers with plants in Pakistan. Mobilink fulfill needs of these local

MNC’s local national and SME’s firms by providing them special service package Brand

Inventory

COMPETITOR’S ANALYSIS

COMPETITIVE COMPARISON MATRIX

Player Positioning Technology Product and Services Owner

Mobilink Plays upon as market leaderFocuses on quality and coverage.

GSMGPRSEDGEGSM-900/1800

Reduce its tariffs due to immense competition on rateData products (blackberry andUSB DSL modem)

Orascom

Ufone Attractive brandclaiming to be a trend setter in the industry.Cheap rates andmedium quality.“Its all about U”

GSMGPRSEDGEGSM-900/1800

Reduce rates and offers attractive packagesFunny promotional ads focusing general attention.Data products (blackberry andUSB DSL modem)

Etisalat

Telenor Has focused onstrong networkdeployment “The smart call”Claming strong

GSMGPRSEDGEGSM-900/1800

Reduce rates with attractive on net call packagesData products (blackberry)Abstract and party

TelenorASA

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Quality&

coverage

promotionwith renowned personalities.

Warid Perceive as good quality but rates are high as compared toothercompetitor

s

GSMGPRSGSM-900/1800

Enhanced and diversified Value added services portfolioImportant Value added services portfolio

AbuDhabi

Zong Has focused onstrong networkdeployment

GSMGPRSGSM-900/1800

Youth oriented VAS

portfolio

Free calls on Closed

user group

ChinaMobile

PLAYERS POSITIONING TECHNOLOGY PRODUCT & SERVICES OWNER

SWOT ANALYSIS OF MOBILINK

Strengths Market leader Strong Brand Equity Wide network coverage International brand Network capacity (Having modern network capabilities in respect of

infrastructure)

Weaknesses High prices Customer servicing problem due to large customer base Foreign brand

Opportunities Huge market size. 3G technologies Removal of international trade barriers. Over 60 percent population in rural areas still underserved pent up demand by

aggressive network expansion.

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Multiple SIM Mobilink being used as secondary connection opportunity to stimulate the growth by improving network coverage

Bring innovation and VAS and data services to increase revenue Market Growth and industry expansion

Threats Recession in economy. Rapid change in consumer demand. Inconsistent and adhoc decisions from regulatory authorities. Political Instability, Security issues. Adverse shifts in trade policies of government. High taxation rate of activation tax is causing a slowdown in consumer growth

especially all in rural areas. Price competition Larger competitors network coverage Strong advertisement and media presence of competitors Entrance of new competitors like Zong. Presence and the acceptability of competitor brand like Telenor and Ufone

COMPETITORS SWOT MATRIX

Strengths: Leveraging brand equity from international corporate “Abu Dhabi Group” Having modern network capabilities in respect of infrastructure. Financial strength of share holder and their telecom expertise ‘Warid

international” Large Post paid based generating high ARPU State of the art IP based contact center and leading data center It has technical partnering involving “SingTel”, “Nokia” and “Wateen”.

Weaknesses: Need to expand network coverage. Need to increase brand awareness and improved market positioning Lack of proactive churn management and stimulate programs to address inactive

subscriber Low promotional packages activities The product line is too narrow.

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Strengths: Subsidiary of PTCL. Stream line benefit. Knowledge about country culture. Experience Variety of Value Added Service Broad market coverage.

Weaknesses: Stagnant Profitability Low market share as compare to competitor (Mobilink). Overly Dependent on PTCL

Strengths:

Superior infrastructure & technology in PAKISTAN Have a very strong financial. They have the ability and resources to hire skilled engineers. Large number of Subscriber

Weaknesses:

Low market share as compare to competitor (mobilink) Limited coverage due to newly introduce in the market Signal problem due to limited network

Strengths:

World biggest network A product of China Mobile Company. Leverage financial resource from CMC Experienced administration

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Weaknesses: Low market share as compare to competitor They are unable to improve the network means that they are not using their

resources. There is the diversion of customers towards other brands due to connectivity

issue

BRAND INVENTORY

BRAND ELEMENTS:

Brand elements consist of brand name, color, Urls, symbols slogans, sound and jingles through which one brand is differentiated from other brands.

Brand Name: Mobilink

Urls : http://www.mobilinkgsm.com

Logos and Symbols:

Slogans: Apna Hai

Colors:Purple and Whitish Purple

CORE BRAND VALUE

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Quality:

Mobilink Telecom has an uncompromising commitment to quality in this regard. that is

why they spare no efforts in pursuing the best in network‚ services‚ product offerings.

Innovation:

For years‚ people complained of the same things on mobiles. At coverage‚ they are

constantly look to make the communication experience different by doing things in a

better way. They already introduced 3G supportable system for being see the need of this

in the near future. For seeing the growing trend of SMS usage Mobilink has introduces

SMSC-less messaging infrastructure that controls the traffic of SMS and makes sure the

delivery of messages without involving pending issues.

Customer-Friendliness:

They enjoy working and succeeding together by building close relationships. While they

have a sense of purpose in their operations‚ they also have a strong culture that

demonstrates to customers that “Reshaping communciation”. Mobilink considers the

needs of customers first.

Coverage:Mobilink has widest network coverage all over Pakistan. One can find the network if

they go to northern areas or remote city of Pakistan

MARKETING PROGRAM

Mobilink message are communicated through using all channels of media including building an identity for the corporation and brand, advertising campaigns, sponsorships, media relations (newspaper coverage, press releases, press conference before launching etc), point of sale material preparation (brochures, tariffs, flyers etc), website. Messagedelivered on electronic media through jingle and using celebrity endorsement. First everadd that comes in the electronic media is symbolize with rain season that bring hope andrefreshment and new joy. Now a day it bran message come man through ball to boys whoare playing Cricket symbolize that Mobilink is customer oriented and helping the customer in even small mattes.

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Media:

Mobilink has always tried to deliver truthful and interesting advertising to its viewers. Through these ads they are trying to convey the message that Mobilink is solely meant for the people’s benefit and convenience. They advertise through Channels like Geo Super Geo, hum TV and through News channels, PTV, ARY and, News 1 TV, Dunya News etc.

Print media:

Mobilink has designed attractive brochures for their customers. These brochures contain all the necessary information about their package deals and tariffs. Hence, making it easier for the people to know about the general prices and services offered.

Sponsorship:

Mobilink advertise through sponsorship in Golf matches, Mobilink agreement with PCB and Mobilink and Citi card launch. Also it got sponsorship with Pizza Hut

Events:

Jazz Rock Lahore

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Philanthropy Activities

Mobilink reaches 1000 families of IDPS

BRAND PORTFOLIO ANALYSIS

BRAND ASSOCIATIONS:

These are the desired associations which Mobilink wants to create in the mind of

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Mobilink Orascom Telecom

Company

Mobilink

Indingo Mobilink Jazz Mobilink Infinity

Jazz One Jazz Budget Jazz Ladies First Jazz Easy

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customers.

Voice Quality

Premium Brand

Network Coverage

Customer Oriented Services

Brand slogan

CONSUMER PERCEPTUAL ANALYSIS

Mobilink telecom wanted to produce perception in the mind of customer as premium

brand with high quality service. The perception map gives their intended perception

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Brand Slogan

Network

Coverage

Premium Brand

Customer

Oriented Service

MOBILINK

Voice Quality

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they want to set in the mind of customer and which they have somewhat successful

through their marketing programs.

Low Price

High Quality

Low Quality

High Price

BRAND POSITIONING

Mobilink is providing voice and data communications services through its state of the

art GSM, EDGE and GPRS network with best voice quality and coverage along with most

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economical billing packages for its subscribers. Mobilink will provide them high quality

and stylish products to improve their life style and make their life easy and beautiful.

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