Marketing Mix:

The term "marketing mix" was first used in 1953 when Neil Borden, in his American Marketing Association presidential address, took the recipe idea one step further and coined the term "marketing-mix". A prominent marketer, E. Jerome McCarthy, proposed a 4 P classification in 1960, which has seen wide use. The four Ps concept is explained in most marketing textbooks and classes.

Elements of the marketing mix are often referred to as 'the four Ps':

• Product - A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are service based like the tourism industry & the hotel industry or codes-based products like cellphone load and credits. Typical examples of a mass produced tangible object are the motor car and the disposable razor. A less obvious but ubiquitous mass produced service is a computer operating system. Packaging also needs to be taken into consideration

• Price – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.

• Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

• Promotion – Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements: advertising, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from cinema commercials, radio and Internet adverts through print media and billboards. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations.

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Mobile Market

The selling market of mobile for the whole month is about 1 million in which 60% market of unbranded mobile and 40% market of branded mobile.

40%

60%

1

2

While 90% mobiles are coming from china either it is Nokia, Samsung or Sony Erickson.Nokia is leading mobile company whose sell is about 3, 10000 monthly.

Below is the chart which is describing the percentage of user using mobile at different prices

Users In (%)

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0%

20%

40%

60%

80%

100%

30000

3000-5000

10000

10000++

30000 80%

3000-5000 10%

10000 2%

10000++ 1%

1

Bra

nde

d M

obi

les

Un Branded Mobiles

Company Profile 2010

Statistically speaking we launched Qmobile a year back and now we are the second most selling brand in Pakistan, owing to its superior quality, affordable price and latest features. We have achieved exceptional results after launching Q mobile’s products in today’s market. In the last year we sold roughly 500,000units.

We have launch 11 models in Q mobile cell phones and have also co-branded with companies like Yamaha Wolfson.In the coming quarters we plan have really sleek phone coming out. Highlighted features in the upcoming models are its stylish look and feel: Qwerty Keypads, social networking and affordability. This recent success story has developed new aspirations for us to create Qmobile as the biggest name brand name in the mobile industry. In the coming years we also plan on global with this brand.

Why Q-Mobile??

• We have been the leaders in electronic business for over 20 years and in the mobiles business for over 8 years

• Our total staff under the QMobile and LG Mobile umbrella is over 250 people • Our sales offices are all over Pakistan• We have the largest sales network in Pakistan, which comprises of over 1600

power retailers• Statistically speaking we launched QMobile a year back and now we are the

second most selling brand in Pakistan, owing to its superior quality, affordable price and latest features

• Another of our success story is LG mobile, at the peak time our sale went to 200K (units) per month, which is the top sales figure in the whole Asia Pacific region in the history of LG mobile

• We give high priority to after sales service and have more then 8 customer service centers in Pakistan and many authorized service centers all over Pakistan.

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Q- MOBILE BRANDS

Q-Mobile E100:

Slim and compact media phone with dual sim

• GPRS• USB• Speaker Phone• FM Radio• MP3 player• Memory card slot• Bluetooth• Downloading

1 year warranty available at Digicom

Q-MobileE-110:

Slim and compact media phone with dual sim

• Dual SIM Card-Dual Standby• Color LCD• Camera• Bluetooth• MP3 Player• FM Radio• FM Recording• External Memory(Free 2GB Card)• Voice Recorder• GPRS• WAP• MMS

1 year warranty available at Digicom

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Q- Mobile E-125:

Slim and Sleek

Features:• E125 Dual Sim card-Dual standby • Color LCD• Smart Camera• GPRS• Bluetooth• MP3 Player• FM Radio• FM Recording• External Memory• Voice Recorder One year Digicom WarrantyFree2GB Memory Card

Q- mobile E-150:

Wireless FM

Features:• E150 Dual Sim Card-Dual Standby• Color LCD• Smart Camera• LED Torch• MP3 Player• FM Radio Wireless• FM Recording• External Memory• 1.8” TFT Screen

One year Digicom WarrantyFree2GB Memory Card

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Q- mobile E-195:

Slim & Full Multimedia Phone

Features:• E195 Dual Sim Card-Dual Standby• Smart Camera• GPRS• Bluetooth• MP3 Player• FM Radio• FM recording• External Memory• Voice Recorder

One year Digicom WarrantyFree2GB Memory Card

Q-Mobile E-200:

Feel the real sound

Features:• Dual Sim Standby• Full Metal Body• Powerful Speaker

Powered by Wolson and Yamaha• Camera 1.3 Mega pixel• FM Radio • MP3 Player• Video Player• FM Radio recorder• WAP/MMS• Color LCD• Bluetooth• USB Downloading

One year Digicom WarrantyFree2GB Memory Card

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Q- Mobile E-400:

All in One

Features:

• Dual Sim Standby• Camera• Bluetooth• MP3 Player• FM Radio• FM recorder• External Memory• Voice Recorder• GPRS/WAP/MMS• Colored Back covers

One year Digicom WarrantyFree2GB Memory Card

Q- Mobile Q3i:

The world that fitsYour Palm and Pocket

Features:• Dual Sim Card-Dual Standby• 1.3 Mega pixel Camera• Bluetooth• MP3 Player • MSN• Face book• Email• FM Radio • FM Recording• External Memory • Voice Recorder• GPRS• WAP• MMS

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One year Digicom WarrantyFree2GB Memory Card

Q-Mobile Q4:

Social networking phone With QWERTY keyboard

Features:

• Dual Sim Card-Dual Standby• 2.0 MP Camera• Bluetooth• MP3 Player/MP4/3.5earjack• Free3 fashion jacks(included in the box)• MSN/Yahoo/E buddy/face book• Email/Opera/Google/twistter• FM Radio • FM Recording• External Memory (FREE 2GB CARD) • Voice Recorder• GPRS/WAP/MMS

One year Digicom WarrantyFree2GB Memory Card

Q- Mobile Q5:

Your connection to the world

Features: • Dual GSM- Dual Standby• 2.2 QVGA LCD• Trackball• MP3/Mpeg4 Player• Music Player Powered by Yamaha• Fm Radio• GPRS-Edge• Camera 2.0 Mega pixel• Support Chatting Application• Voice Recorder• Stereo Speaker• Bluetooth• External Memory

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One year Digicom WarrantyFree2GB Memory Card

Product Features :

Q-Mobile Q-3i

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Messaging mobile phone with Qwerty keyboard

Main functions

• MTK 6225• GSM/GPRS 900/1800 or 850/1900MHz• WAP/MMS • GPRS Class 12• MP3 player• Voice Recorder• FM Radio • USB• MSN,Yahoo messenger• Facebook,

Basic Information • Size 111.2*61.2*13mm• Weight 72g• Main LCD 2.0“TFT QCIF(176*220)• Camera 1.3M pixel • Antenna Embedded• Speaker Stereo• Memory 128Mb+32Mb• Extended Memory Support T-Flash Card (8G)• Java No• Bluetooth yes

Multimedia • MP3 play Mp3、Midi 、WAV• Audio recorder AMR• Video player AVI,3GP • FM Sound Recorder Yes

• CameraType：JPG Size：220*176/80*60/160*120/320*240/640*480

Phonebook • Phonebook 1000• Phonebook Grouping Yes (5 grouping)• Search Mode by name/intelligent• Phonebook Browse by pages

Message • SMS Phone Memory 300• SMS Template 10 template• SMS Group Sending SMS Group Send(10)• MMS YES

Ringtone • Type mp3,midi• Integrated Ringtone Number 10• Download Ringtone yes• Edit Ringtone No• Power on/off tone yes

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Business/Amusement Function • Profiles selection yes• Change Wallpaper yes• Alarm yes• Schedule yes• World Time yes• Calculator yes• Calendar yes• Unit Conversion yes• Exchange Rate Conversion yes• Memo Pad yes• Recorder yes• Auto On & Off yes• Private Info Protection No• Game yes• Background Sound NO• Mobile tracker Yes• PC Sync yes• Email SSL

Call Management • Call Timer yes• Phone Call Record Record• Missed Call Record Record• Handsfree Function yes

Battery • Stand-by 108 hours• Talk time 6 hours• Battery 1000mAh Li-ion Battery

Standard Package • Handset 1• Battery 1• Travel Charger AC adaptor 1• Stereo MP3 Earphone 1• USB cable 1

Packaging and Labeling:

Whole designing and labeling of the product is being done in house , after approval of design and labeling .This design is sent to China where its finally printed and the after the whole packaging of mobile, they are exported to Pakistan.

Front

Back

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Inside Sides

Warranty and Customer Support :

Q- Mobile is giving 1 year full flash warranty of Digicom for their all mobiles .They are also committed to give their support and services in 24 hours.

To maintain the quality of Q-Mobiles, the technical department is committed to check the quality of sets after importing from China.

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Price: The price of any product is basic attraction for the end user .To keep in view that Q mobile is targeting mass market they are selling their product at very reasonable price with immense features. Q mobile is using Penetration Marketing strategy, because their strategy emphasis on Good quality China mobiles and their target market is mass market who can’t afford high price mobiles and they want each and every feature at lower cost.

Penetration Pricing:

It is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers. The strategy works on the expectation that customers will switch to the new brand because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume, rather than to make profit in the short term.

The advantages of penetration pricing to the firm are:

• It can result in fast diffusion and adoption. This can achieve high market penetration rates quickly. This can take the competition by surprise, not giving them time to react.

• It can create goodwill among the early adopters segment. This can create more trade through word of mouth.

• It creates cost control and cost reduction pressures from the start, leading to greater efficiency.

• It discourages the entry of competitors. Low prices act as a barrier to entry (see: porter 5 forces analysis).

• It can create high stock turnover throughout the distribution channel. This can create critically important enthusiasm and support in the channel.

• It can be based on marginal cost pricing, which is economically efficient

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Cost Sheet OF Q-3i Mobile

Note: ALL THE FIGUERS ARE FAKE AND THE GIVEN PRICES ARE GIVEN ON APPROXIMATION. THIS SHEET IS CONFIDENTIAL.

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COST SHEET PER UNIT

PURCHASE 2725• FREIGHT

450-550

• INSURANCE COVER• IMPORT DUTY• EXCISE DUTY

GOWDON RENT (AIRPORT)• STAMP DUTY / PAYORDER CHARGES ETC• EXAMINATION / SHIFT CHARGES AIRPORT• TRANSPORTATION CHARGES / LIFTING CHARGES• SERVICE CHARGES (CLEARING AGENT)• OTHER (FILE PROCESSING CHARGES)• BANK CHARGES• BANK CHARGES (LC / OTHER)

TOTAL LANDED COST 3175-3275

• MEMORY CARD 350-400• OFFICE EXPENSE 175-200• ADVERTISEMENT / MEDIA CHARGES 175-225

TOTAL COST 3875-4000

• NET PROFIT PER UNIT (PERSONEL) 300-425

• DEALER (WHOLE SALLER MARGIN ) 200

RETAIL PRICE OF Q3i 4500

Samsung M-150

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Price 5000

Messaging SMS

Weight 101.00g

Dimension 106.5 x 45.4 x 12.7 mm

Browser WAP 2.0 / xHTML

Memory Phonebook: Yes; Call records: 30 dialed; 30 received; 30 missed calls

Ring Tones Polyphonic; MP3

Display Size 128 x 160 pixels, 1.77 inches

Availability Available

Display Colour TFT; 256K colors

Frequency / Band GSM 900 / 1800

Entertainment Games: Yes

Connectivity GPRS: Class 10 (4+1/3+2 slots); 32 - 48 kbps; Bluetooth: Yes; v2.0; USB : Yes; v2.0

Camera VGA; 640x480 pixels; video(MPEG-4)

Comparison of Q3i with other Mobile brands with respect to Price and Features

SAMSUNG 1107

NOKIA 2630

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Price 5200

Display Size 128 x 128 pixels, 1.52 inches

Messaging SMS

Battery Talk Time Up to 8 h stand by time Up to 570 h

Dimension 105.2 x 44.2 x 16.4 mm

Browser WAP 2.0 / xHTML

Memory Phonebook:500 entries, Call records 30 dialed, 30 received, 30 calls 30 dialed, 30 received, 30 missed calls

Ring Tones Vibration; Polyphonic, MP3 ring tones

Weight 77 g

Availability Available

Display Colors CSTN, 65K colors

Frequency / Band GSM 900 / 1800

Entertainment Stereo FM radio with RDS, MP3

Connectivity GPRS Class 10 (4+1/3+2 slots); 32 - 48 kbps

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Price 5500

Ring Tones Polyphonic (24 channels); MP3

Weight 66.00g

Availability Available

Display Colors TFT; 65K colors

Frequency / Band GSM 900 / GSM 1800

Entertainment Yes + downloadable; FM Radio

Connectivity Class 10 (4+1/3+2 slots); 32 - 48 kbps; Bluetooth

Display Size 128 x 160 pixels

Messaging SMS; MMS; Email; Instant Messaging

Battery Talk time Up to 6 h; Stand-by Up to 310 h

Dimension 105 x 45 x 9.9 mm; 45 cc

Browser WAP 2.0 / xHTML

Memory Phonebook 1000 entries; Call records 20 dialed; 20 received; 20 missed calls; 11 MB user memory

Camera VGA; 640x480 pixels; video(128 x 96)

NOKI A 2690

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Price 5,950

Ring Tones Vibration; MP3 ringtones,speaker phone

Weight 80.7 g

Availability Available

Display Color TFD; 256K colors

Frequency / Band GSM 850 / 900 / 1800 / 1900

Entertainment Stereo FM radio,games,JAVAYes, MIDP 2.0 ,MP4/H.263 player, MP3/WAV/WMV/eAAC+ player

Connectivity GPRSClass 10(4+1/3+2slots), 32 - 48 kbps,EDGE Class 10,3HDSPA 236.8kbps,Bluetooth v2.1 with A2DP, micro USB V2.0 b/g

Display Size 128 x 160 pixels, 1.8 inches

Messaging SMS, MMS, Email

Battery Talk time Up to 4 h 30 min Stand-by Up to 312 h

Dimension 107.5 x 45.5 x 13.8 mm, 58.8 cc

Browser WAP 2.0/xHTML, HTML

Memory Phonebook:2000 entries, Photocall,Call records, Internal 50 MB,microSD, up to 8GB

Camera VGA, 640x480 pixels,vedio QCIF @ 15fps

SAMSUNG M200

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Price 6,300

Ring Tones Polyphonic; MP3

Weight 120.00g

Availability Available

Display Color TFT; 65K colors

Frequency / Band GSM 850 / 900 / 1800 / 1900

Entertainment Games: Yes; Java MIDP 2.0 - FM Radio/FM Recorder - MP3/e-AAC+/WMA player - MPEG4/3GP player - Organizer - Built-in hands free - Voice memo - T9

Connectivity GPRS: Class 10 (4+1/3+2 slots); 32 - 48 kbps; HSCSD: Yes; Bluetooth: Yes; v2.0 with A2DP; USB: Yes; v2.0

Display Size 128 x 160 pixels; 1.9 inches

Messaging SMS; MMS; Email

Battery Talk Time: Up to 3 h; Standby Time: Up to 300 h

Dimension 107.6 x 45.6 x 12.9 mm

Browser WAP 2.0 / xHTML

Memory Phonebook: Yes; Call records: 30 dialed; 30 received; 30 missed calls; Card slot microSD (Tran Flash) - 20 MB embedded memory

Camera 1.3 MP; 1280 x 1024 pixels; video(MPEG4)

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Sony Ericsson w200i

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Price 7000

Ring Tones Polyphonic (40 channels); MP3; AAC

Weight 85.00g

Availability Available

Display Colors UBC; 65K colors

Frequency / Band GSM 900 / GSM 1800 / GSM 1900

Entertainment FM radio with RDS; MP3; ACC; Walkman Media Player 1.0; Java MIDP 2.0

Connectivity GPRS: Class 10 (4+1/3+2 slots); 32 - 48 kbps

Display Size 128 x 160 pixels; 1.8 inches

Messaging SMS; MMS; Email; Instant Messaging

Battery Talk Time: Up to 7 h; Standby Time: Up to 360 h

Dimension 100 x 44 x 18 mm

Browser WAP 2.0/xHTML; HTML(Net Front); RSS feeds

Memory Phonebook: Photo call; 30 received; dialed and missed calls; Memory Stick Micro (M2); 27 MB internal memory

Camera VGA; 640x480 pixels; video

Place:

Q-Mobile is making sure to give ease and support towards their product for their customers.For this purpose they have nationwide authorized dealers, they are also committed to give as soon as possible after sale services to their valued customer’s .For that purpose they have service centers on important locations.

Q Mobile Nation Wide Display centre& Sales Offices:

• Karachi Head office: Room No,112 First floor, The Forum, Clifton Karachi Phone no. : +92-21-35838062

• Karachi Saddar Office: Gemini Plaza, 39/a, Parking Level 1, Agha Khan III Road, Saddar Karachi, Phone no. 0213-2711105-7, Fax : 021-32711099

• Karachi Digicom Display Centre: Haroon Chamber Saddar Karachi, 0345-2884688

• Authorised Digcom Dealers: Mobile Gallery, sadder Mobile Market, 0333-2273445, 0300-2212191

• Hyderabad Sales Office: 0300-9370378

• Lahore Sales Office: 11/7, Lawrence Road, Near Roznama Khabrain Akhbar, Lahore . 0300-8455605

• Authorised Digicom Dealers: Lahore: Younis Mobile 29-main Hall Road Lahore, 042-7236801, 042-7244485, 7231189

• Rawalpindi Sales Office : Tel : (051) 4456422, 03008418228

• Authorisez Digicom Dealers: Rawalpindi & Islamabad Unitech Mobile , Sharjah Center, Ph: 051-4853625, 0300-8332222

• Multan Sales Office : 0321-8401759

• Gujranwala Sales Office: 055-3820566, 0333-8147788

• Faisalabad Sales Office: 041-8721390, 0300-8650014

• Peshawar Sales Office: 0300-5982100

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Karachi Display Centre

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Nationwide Service Centre:

For Customer Care Information

• Karachi: Aga Khan III road, next to Gimini Mobile market, first floor UBL Bank, sadder Karachi Phone no: 021 32711094 , Cell: 03332264434

• Lahore Shop No 8,9 1st floor, Paradise Centre Mall, Hall Road, Lahore.Ph No. 7313111, Cell no. 0321-880756

• Lahore II: Office#19, 3rd floor, Al Latif center Opp, Hafez center, Gulberg III, Lahore, Phone no: 042 5789918-9, Cell No. 0321-4343867

• Faisalabad: 679-B,Batala colony, Ghori Plaza, Station Road, Faisalabad, Phone no. 041 8715460, Cell no:0300-6664798

• Gujranwala: Crescent market, New railway station G.T Road Gujranwala, Ph no:0553820565

• Hyderabad: Bungalow No.638-B, unit no. 2 Latifabad Hyderabad, Phone no: 022 3817901-2

• Multan :67 F, Khan plaza, Cantt area, Multan, Ph:061-474683, Cell: 0321-6358280

• Peshawar:Shop No.1, National Bank building, opp Gul haji, Main university Road, Peshawar Ph:091-5854254 Cell: 0300-5982100

• Rawalpindi: 1st floor , Room No.13 Rizwan arcade, Adamjee Road sadder Rawalpindi Ph: 051 5120510-11, Cell: 0333-5304188

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Karachi Sales & customer service centre of DIGICOM

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Promotion:

Target Market:

The actual target market of Q-mobile is Mass market of the age between 18 to 35.These are those people who have limited income and want a good product with lot of features in a affordable price.

Annual total Budget:

The annual total budget of Q mobile is more than 25 millions which is distributed in two parts.

• ATL (Above the Line)advertisement• BTL (Below the line) advertisement

ATL is a type of advertising through media such as television, cinema, radio, print, web banners and web search engines to promote brands. This type of communication is conventional in nature and is considered impersonal to customers.

BTL is a common technique used for "touch and feel" products (consumer items where the customer will rely on immediate information rather than previously researched items). BTL techniques ensure recall of the brand while at the same time highlighting the features of the product.

The budget is distributed in a ratio of 70% for ATL and 30 % for BTL

For promotion of their product they are also giving some offers to both customer and retailers like

Free 2 GB memory card with their every mobile.

For dealers they have given a deal if they sell 15 mobiles of E-200 and 5 mobiles of Q-3i than they will get 1 free Q-3i.this gives and additional advantage to retailers.

For ATL advertisement purpose they have already bought Air time on Channels which is about 150 million.

While the other amount is being used for BTL advertisement purpose which includes buntings, posters, Streaming Boards, shelf talkers, Mobile cards, Market Banners Etc.

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Q-3i Print Campaigns

Hot Seller! Q3i

5/23/2010 1www.qmobile.com.pk

Buntings

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Market Banner

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Mobile Card

Poster:

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Shelf Talker:

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