kIntroduction to Business (MGT211) Spring, 2014Assignment.02Due Date: July 18, 2014Total Marks: 10Topic: Target Marketing and Market Segmentation

Objective

The prime objective of this activity is to how companies can do market segmentation to build the positions of their brand in customer’s mind.

Learning outcome of the activity

After attempting this activity, the students will be able to:1. It will give awareness to the students how companies can position their brands by

providing extra features.2. Students will be able to identify the role of brand positioning.

Background

Market segmentation is a marketing strategy that involves dividing a broad target market into subgroups of consumers who have common needs and priorities, and then designing and implementing strategies to target them. There may be a large number of variables that can be used to differentiate consumers of a given product category. The major segments are geographic, demographic, psychographic and behavioral segmentation. In the next step, companies find a strategic fit that how to target one or more segments and what positions it want to occupy in those segments. Positioning seeks to make a unique place in the minds of the target market by appropriately designing the company’s offerings and image. In general, rightly positioning a brand would lead to the creation of a value proposition that would appeal to the needs of the target market. A brand may be positioned on the basis of an attitude or benefit, use or application, user, class, price, or level of quality. Products are made in factories but brands happen in the minds of consumers.

Case study

Pakistan Mobile Communications Limited (PMCL) better known as Mobilink GSM is a telecommunication service provider in Pakistan; it has become the market leader both in terms of growth as well as having the largest customer subscriber base in Pakistan. Mobilink’s target market varies with its different product lines e.g. the Mobilink Indigo brand mainly targets the corporate sector of the Pakistani community. Indigo connection provides you with state of the art facilities that let you conduct business on the go. Indigo makes sure that you can make timely and informed business decisions; on the other hand Mobilink jazz is an exciting and energetic offering of Mobilink, targeting specifically those enthusiastic teenagers, middle class and the youth market of the country who wishes to enjoy freedom, fun, lower rates and a package that matches their personality. The growth has been further strengthened with brand building

activities that have ensured that jazz and indigo remain synonymous for premiumtelecommunication services for which they are close to the hearts and minds of the customers.

Requirement:

Keeping in view the aforementioned background and case you are supposed to conductpositioning analysis on the basis of price and service quality of Mobilink against its competitors? (Telenor, Warid, U-fone and Zong) in this positioning map?

Important Instruction: Firstly you need to place the Mobilink in the matrixrelative to its competitors and then provide a detailed description to supportyour argument along with the positioning map given. 5 marks for placing The

Mobilink in the positioning map and 5 marks for its logical reasoning.

points for writing reasoning !!!

1.  Mobilink is the founding company of telecom sector (mobile networks)  in Pakistan2. it is serving (ratio confirm from list) % of conusmer3. highest number of users including prepaid / postpaid users4. biggest cellular network in pakistan5. biggest 3g networkgraph me  isi tara se jo price wise high ho ga wo uper aye ga or jo low ho ga.. wo respectively nechay ata jaye ga

quality determine ap number of user se kareyn gay, jitnay high number of user ho gay utni quality high ho gi

The growth has been further strengthened with brand building activities that have ensured that jazz and indigo remain synonymous for premium telecommunication services for which they are close to the hearts and minds of the customers.

official website of PTA, Mobilink, Telenor, Warid, Zong and U-fone. Found few facts indicated by these sites. These are summarized below

                                Mobilink      Telenor       Warid          U-fone          ZongUsers                         37.1 Mn      33.5 Mn      12.7 Mn      24.5 Mn         15.6 Mn

Avg Call rate/min         Rs. 2.1       2.00           1.60           1.98              1.60

SMS                            Rs. 1.7       1.00           1.50           1.55              1.00

Cellular Subscribers   28.9%        26.1%         9.9%          18.6%           16.4%

Share                

CPM                           3.5             2.25           2.00            3.00              3.00

For your understanding, see the below example of developing a positioning map:

Price High

Service Quality (low)

Price (Low)

Service Quality (High)

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