Jazz Swot Analysus

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CELLULAR NETWORK INDUSTRY OF PAKISTAN- 2 -

CELLULAR NETWORK INDUSTRY OF PAKISTAN- 2 -

ABOUT MOBILINK- 6 -

SWOT ANALYSIS FOR JAZZ- 9 -

BUYER ANALYSIS FOR JAZZ JAZBA- 12 -

Brand Loyalty- 12 -

Demographics- 12 -

Consumer awareness- 12 -

Factors related to Consumer Behavior:-- 12 -

Who buys the product?- 13 -

COMPETITIVE REVIEW- 13 -

MEDIA STRATEGIES- 16 -

SEGMENTATION- 18 -

TARIFF STRUCTURE- 19 -

OUR PROPOSAL- 22 -

SPECIFIC CAMPAIGN OBJECTIVES- 22 -

POSITIONING STARTEGIES- 23 -

CREATIVE RECOMMENDATIONS- 23 -

ADVERTISING STRATEGY- 24 -

BUDGET ALLOACTION- 25 -

MEDIA RECOMMENDATIONS- 27 -

MEDIA PLAN- 28 -

MESSAGE STRATEGY- 31 -

ANNEXTURE- 32 -

CELLULAR NETWORK INDUSTRY OF PAKISTAN

Cellular network industry has been one of the rapid growing industries in the past few years but recently the growth has slowed down as the market is now becoming saturated. Industry’s growth is slowing down over the period of time, which means that new subscribers’ addition is reducing and future competition will be focused more towards launch of innovative products/services to increase revenue streams.

Subscribers’ retention & acquisition of subscribers is already on the top of to-do lists, along-with, customer support is going to play pivotal role in the days to come.

The industry has a very low threat of new entrants due to the fact that this industry requires a huge investment and the cost of acquiring the licenses is also very high. Currently to obtain this license it costs $300 million and this license needs to be renewed every 10 years. It is a very big investment that a player needs to make in order to enter this industry. Also for the new entrant, it would be very extremely difficult to come up with the capital to infiltrate the established distribution network of the current well-established players. Vodafone and Orange5 are two international companies who have been trying to penetrate in the Pakistani telecom industry, but have been unsuccessful so far. They still have not given up and are still trying to obtain the license to operate here.

Moreover the threat of substitutes is almost negligible as no absolute substitute yet exists for cell phones. Supplier power is the industry is also low but the buyer power is high as its because of them that a price war is going on in the industry. The telecommunication industry has one of the most competitive rivalries in any industry. There are a large number of buyers and there are only few players in the industry to cater to this vast market. The price to enter the market is really high and similarly to exit is also very high. Therefore, the players in the market are there to stay. The market is extremely price sensitive and even if one service provider reduces prices, then the others will have to follow suit otherwise they will lose out on their piece of the pie and their negative churn will increase.

The global economic slump and current economic instability and recession9 in the country has drastically affected the state of cellular service industry in the Pakistan. High inflationary pressures and other unfavorable factors have resulted in low real incomes for people. This has made buyers more price-sensitive and willing to switch to any service that provides lower rates and wider range of services.

Pakistan’s Cellular industry faced tough fiscal year 2009-2010. Hiked pricing, lower buying power, power crisis, currency devaluation and price war remained major strikers for the cellular companies in year 2009-2010.

Cellular subscribers in Pakistan reached 100,134,748 mark, as of September 2010, according to latest stats released by Pakistan Telecommunication Authority. [pic]

In comparison to 17% revenue growth in FYE 2009, overall industry revenue growth slowed down to 11% in FYE 2010.

[pic]

In terms of revenue, Ufone, Telenor & Zong managed to...
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