marketing plan Cable Business

Marketing Management Assignment

Marketing Plan for Cable Operator

Submitted to: Mr. Usman Ghani Submitted By: Naveed ul Rehman Rahman Ullah Abid ur Rehman

INSTITUTE OF MANAGEMENT SCIENCES

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UNIVERSAL CABLE TV

HAYATABAD











UNIVERSAL CABLE TV

Marketing plan

U

Universal Cable Network











UNIVERSAL CABLE TV

Executive Summary The goal of this marketing plan is to review the performance of Universal Cable (a sate satell llit itee TV chan channe nell serv servic icee provi provide der) r) and and reco recomm mmen end d the the requ requir ired ed chan change gess for for furt furthe her r improv improveme ements nts and expansi expansion. on. UNIVES UNIVESAL AL CABLE CABLE is runnin running g a succes successfu sfull busine business ss in the Peshawar city area. In future if Universal Cable adopted better polices Universal Cable will be the only Cable Network & that it would become the market leaders in Peshawar. These policies include the development of high quality ads for clients, market the organization more effective, adding new channels, , introduction of fibre optic for transmission of signals, providing Cable Net facility, polite behaviour with the customers and try to satisfy them etc. Universal Cable provides a source of information and entertainment through the medium of the cable. Universal Cable is the answer to an increasing demand. The public wants access to the methods of entertainment and volumes of information now available on the cable.











UNIVERSAL CABLE TV

Table of contents Executive Summary................................................... ................................. ....... ............... ............ ....4 Introduction:.................................................. ..................................................... ............................................................ ............ .....6 1. Situation Analysis Analysis.................................................... ................................................................................. .................................... .............. .............. .......8 1.0 Situation Analysis:..................................................... ............................................................................................... ..........................................8 1.1 Market summary: ....................................................... ................................................................................................. ..........................................8 a) Target Market: ......................................................................................................8 b) Market Needs.................................................. ................................... ....... .............. ............ .....9 c) Market Growth................................................ ................................. ....... ............... ............ ....10 10 2. SWOT ANALYSIS .................................................................................................12 12 Strengths:................................................ ..................................................... ............................................................ ............ .....12 12 Weaknesses:................................................ .................................. ....... ............... ............... ........... .... 14 Opportunities:..................................................... ............................................................................................. ........................................ ....... ............. ......15 15 Threats: ..................................................................... .................................. ....... ............ ..... 16 3. Competition ...................................................... ....................................................................................................... ................................................. .......17 17 Product/Service Offerings..................................................... ..................................................................... ........................ ............... ......... ..17 17 Keys to Success:....................................................... ......................................................................................... .................................. ....... ............ ..... 17 Critical Issues:..................................................... ...................................................................................... ................................. ....... ............... ............ ....18 18 4. Marketing Strategy`................................................ ......................... ................................. ............... .............. ......... ..19 19 4.1 Mission statement .............................................................................................19 19 Marketing Objectives:.................................................. ......................... ................................. ............... .......... ...19 19 .............................................................................................................. ........................................................ ............................................................. .............. ........... .... 19 4.3 Financial Objectives .........................................................................................19 19 4.4 Product Positioning ..........................................................................................19 19 4.5 Strategy ................................................... ................................................. ........ 20 4.6 Marketing Mix ........................................................... .... ......................................................................................... .................................. ..... 20 5. Financials, Budgets, and Forecasts................................................. ....... ............... ............... .......... ...22 22 5.2 Sales Forecast ......................................................................... .............. ..................... ............ ..... 23 Expense Forecast ............................................................... .......................... ................................. ........... .... 23 6. Implementation/Controls................................................... .......................................24 24 6.0 Controls ............................................................................................................24 24 6.1 Marketing Organization ....................................................................................24 24 6.2 Contingency Planning ......................................................................................24 24 6.3 Review ........................................................ .................................................................................................... ............................................ ........ ........... ...25 25 References: ..................................................................................................................26 26 Interviews:................................................... ........................................................ ................................................................ .........26 2. 6











UNIVERSAL CABLE TV

Introduction: The fruits of science in the shape of technology, inventions and discoveries have fast transformed our way of life. One of the foremost symbols of science is the machine. The twentieth century is indeed, a world of machines. More machines have been invented in the last fifty years than in the entire course of recorded history. Science and technology have completely transformed our every day life. Whether it is health or education, industry or transport, communication or entertainment, fashion or domestic comforts, the machine is every where; thus it is every where to serve humanity. The Electronic Revolution of the nineteenth and twentieth centuries bought the motion picture, radio and TV, which joined the print media in spreading information, ideas and providing entertainment. One of the most distinguishing characteristics of mass communication is that it is mostly one way. One of the wonders of modern science is that one can see TV programmes of almost all countries on one’s own TV set. Due to it the whole world has been transformed into global village. Thus from Radio, TV, VCR & DISH; Media is turned towards “Cable T.V”.

Brief history of Universal Cable: Universal Cable is a case in point. At start its name was Universal Cable Network formed by three partners, Imran Nabi Awan, Sohail Ahmad, and Abdul Jalil in September 2000 in Kareem Pura (inside city). Initially they invested Rs.180, 000 with 5 employees. The employees included 1 Chief Engineer, 2 Sub Ordinates, 1 Accounts Officer and 1 Peon. Chief Engineer was assigned the responsibilities of installing equipments and dish allotment. , Maintenance of Signal and Maintenance of Caballing. Responsibilities of Sub Ordina Ordinates tes were were to check check compla complaint ints, s, practi practical cal work work in mainta maintaini ining ng of Signal Signals, s, Practi Practical cal work work in maintaining Caballing At Present its name is the same i.e. Universal Cable Network with its logo and the ownership is shared by the same partners, Imran Nabi Awan, Sohail Ahmad, and Abdul Jalil in Kareem. Now Universal Cable has 20 employees with 5 line men, 5 booster installer, 4 Fee collectors from home, 4CD channel operators; with 2day time duty & 2-night time duty and a telephone operator .Monthly Profit is more than 30 thousand approximately

Requirements for cable net work business

PEMRA Registration: For starting a Cable Net work business one should be registered with PEMRA. PEMRA means Pakistan Electronics Media Regulatory Authority, its organization, which requires following things.

NTN Number: NTN Number means National Tax Number. This Number provides guarantee that one is a Tax Payer of government.

Employees Record:













UNIVERSAL CABLE TV

Qualification Job Experience If the nature of the job is technical so Technical Experiences is required.











UNIVERSAL CABLE TV

1. Situation Analysis 1.0 Situation Analysis: Cable Cable TV servic servicee provid providers ers are runnin running g their their busin business ess quite quite succes successfu sfully lly.. Peopl Peoplee want want good good entertainment and for this they are ready to pay. After the whole day while working in offices etc. when they come back to their homes, every one likes to sit with their family members and watch the good programmes. Besides all factors, there’s no doubt that cable is providing a good entertainment to its clients. Its overall performance is excellent.

1.1 Market summary: Universal cable TV is faced with the exciting opportunity of being providing excellent services to its customers. The growing interest in the cable television can produce good results. There are two competitors in the Kareem Pura area right now, but in Peshawar there are other competitors of universal cable TV but they can manage it by providing good quality service and clear transmission of channels. Today is a world of information and every one wants to know what is going on in the world, so for this reason every individual wants to have access to as much mediums as he can. Cable TV service is the best solution for fulfilling this desire by telecasting more than 70 channels. So this increases demand for cable TV service in the market.











UNIVERSAL CABLE TV

Demographics Universal Cable target market covers a wide range of ages: 4 to 60 years and the major users are in the age range of 15 to 40 years. These age ranges include both male and female.

Our primary target markets include: Students & teenagers: The large student population will become an important part of the Universal Cable customer base. The student population continues to grow. Non stop entertainment and access to the information will attract this demographic.

Business people & other professionals: The business community is growing rapidly with the addition of a new Computer facilities and a flurry of new professional centres. Universal Cable will provide a perfect setting for business meetings through conferencing. It will also give travelling business people an opportunity to plug their laptops into the Universal Cable network to check email communications.

Seniors: Represent a growing population of cable TV viewers. Universal Cable will target the seniors in the area by offering classic music & movies... This will build a regular base of customers that wouldn't typically use the services offered by Universal Cable.

b) Market Needs The rapid growth of the Information technology that has been witnessed worldwide is only the beginning of a long-lived trend towards an economy built on the infrastructure of the Cable TV. The potential growth of the cable TV is enormous, to the point where one day, a TV with cable connection will be as common and necessary as a telephone. This may be 5 or 10 years down the road, but for the next five











UNIVERSAL CABLE TV

update regarding the stock exchange situation, and kids are talking about the latest cartoons and children programs. People like to communicate their views a bout the cricket matches and other sports they experiences with their friends, colleagues and family, which they, otherwise, would not have been able to watch without cable TV channels.

c) Market Growth Here is a brief look of the growth in cable market business in Kareem Pura (an area n the main Peshawar city) and in its vicinity for the last seven years.

Cable Cable Growth chart 80% 70% 60% e g a t n e c r e P r e s U

50% 40% 30% 20% 10% 0% 200 0

2001

200 2

200 3

2004

Years

2005

200 6

20 07 07

20 08 08











UNIVERSAL CABLE TV

With the help of the pie – Chart the ratio of the users of Universal cable T.V is given below. In the year 2000 the usage of cable was only 3%., in year 2001 it was 8%., in year 2002 the ratio of the users was 12%., in year 2003 the ratio of the users automatically jumped to 28%. This sudden change in the business was very successful for them and from inside city the business boosted up and expanded to Lahori, Ganj, meena bazaar etc Universal Cable market ratio percentage 50%

46%

45%

42%

40%

36%

35% o i t 30% a r t 25% e k r a 20% M

28% 20%

15%

12%

10% 5%

8% 3%

0% 1999 1999

2000 2000 2001 2001

2002 2002

2003 2003

2004 2004

2005 2005

2006 2006 2007 2007

2008 2008

Years

In year 2004 the business of cable was in boom period. Public was getting a very good entertainment and everyone was ready to pay what ever were the charges. Thus cable operators exceeded their charges from Rs 150/- to Rs. 250/-. In year 2005 after the extension of the business of cable cab le the ratio of its users was increased from 38 % to 45%. In year 2006 2 006 it extended its network and captured almost 42% of the cable cab le market. AND NOW approximately in some areas of inside city there is all over Universal cable.













UNIVERSAL CABLE TV

2. SWOT ANALYSIS The SWOT analysis is used as the base line for future improvement. The best strategy is one that fits organization's strengths to opportunities in the environment. Comparing the organization to external benchmarks is used to assess current capabilities. Benchmarking systematically compares performance measures such as efficiency, effectiveness or outcomes of an organization. Benchmarking with other organizations can help identify a gap. Gap analysis identifies the progress required to move the organization from its current capabilities to its desired future state. In this way, the organization can adapt to the best practices to improve organizational performance.

SWOT

Strengths

Weaknesses

Opportunities

Threats











UNIVERSAL CABLE TV

watc watch h Prog Progra ramm mmes es abou aboutt fash fashio ion, n, beau beauty ty tips tips and and home home deco decora rati tion onss etc. etc. Diff Differ eren entt cook cookin ing g programmes are not only watched by house hold ladies even such food items are practiced in homes and have added new tastes to their dinning tables.

2. Employment In T.V Cable networks people especially belonging from Middle and lower class have got jobs. Almost there are approximately 15 setups of T.V Cable operators. They all require “peon”, “office boys / men for keeping records of payments, permanent electricians for proper cabling etc. In a developing country like Pakistan such jobs for Middle and lower class are quite enough to maintain that families.

3. Entertainment, Information & learning A T.V Cable network operates many channels of the world in one time. One can see so many channels around the world or get information at one time. The Cable provides 24 hours Entertainment to their clients. One can’t get bored while sitting in front of TV Cable. GEO & ARY give full updates of news news from from all over over the world. world. QTV plays plays inform informati atics cs progra programme mmess about about Islam. Islam. Natio National nal geographic tells information about animals etc. There is a separate channel for Sports Lovers. In spite











UNIVERSAL CABLE TV

Weaknesses: Lack of Family Channels & Vulgarity: The trend of family channels has been gradually finished from T.V Cable networks. The channels telecasted by cable networks are only left with vulgarity instead of providing family entertainments. Head of the family is unable to watch T.V programmes while sitting with his own family members because of vulgar programmes.

Effect on national language Indian channels programmes, dramas, movies etc telecasted by cable networks has affected a lot on our national language. Younger feel proud while using Hindi words in their conversation. e.g. Widwa for

widow, widow, karaab karaab for bad, chamat chamatkar kar for wonder wonder,, Jeejajee Jeejajee for for brother brother in law, law, Sasoo maah maah for for

mother in law, shagoon for good events, etc

Influence of Western Trend: Asian culture and trend is influenced by Western culture. Whatever People see they try to adopt whether they look good or bad. Thus western culture is influencing our society a lot.











UNIVERSAL CABLE TV

Less information Due to CD channels of cable network we get less information of international products. Because the advertisements of international products are replaced with local products ads.

Non co-operational attitude of cable network operators The cable network operators have no coordination with each other. Within one city their policies differ from one another. E.g. in city if there is ban on “English Channels” in Cantt the same channel is working on. This shows lack of understanding and non co-operational attitude of cable network operators among themselves.

Poor office Location One and the main important weakness of the universal cable network is that their office location is not good. It’s in side city, in a street. Their sub office can be maintained inside city but their Main office should be located at such a place, which is accessible to all. It should be outside the street on front or across the road.

Weak marketing Another important weakness of the business is their marketing is poor. They are dealing with











UNIVERSAL CABLE TV

Selling Wire The Other opportunity for this business is that they should sell wire (cable) with their own brand name. This will increase their sales. And will become a new source of marketing.

New Channels More over they can buy new channels of different countries other than India, U.K, & DUBAI etc this will also increase the demand of “Universal Cable T.V”

Threats: •

Cable network can be operated without cables/ wires into homes with the help of optic fibres. If in Peshawar any cable network operator adopted this opportunity the business of universal cable operators will be affected. Because its signal quality is more than cables/ wires.

•

A Mobile Company “Warid Tele Com” is starting its new project “Al-Wateen” in this project they are also working on optic fibres and if they started their setup, this will affect the business of universal cable operators too.













UNIVERSAL CABLE TV

3. Competition The service nature of Universal Cable business faces competition competition with other cable service providers. There are a total of 11 cable service providers in the Peshawar. OK cable network, Afridi cable network, MZ cable in near future a tough competition is expected because these brands b rands will retaliate.

Product/Service Offerings Basically Universal cable offers service in the form of 70 plus cable TV channels. In the near future Universal Cable is looking for making Cable Net available through the existing cables (wires). The TV channels include Pakistani, Regional and, of course, International TV channels. Here is a list of channels the Universal Cable offers:











UNIVERSAL CABLE TV

• • • • • •

• •

The UPS (Uninterrupted Power supply System) to operate even when there is no light The provision in Universal Cable for education and entertainment. The Cable provides 24 hours Entertainment to their clients Clearer TV picture Can have access to the latest information round the clock by tuning into the News channels Provides religious education from renowned scholars while you are at home like Peace TV, QTV, Haq Ha q TV etc. No additional or hidden charges, just Rs. 250 per month and enjoy the More channels than dish and no headache of moving the antenna (umbrella)

Critical Issues: The risks involved for Universal Cable are:











UNIVERSAL CABLE TV

4. Marketing Strategy` 4.1 Mission statement The mission of universal cable is that it would become the only best cable operator in Peshawar and if it’s difficult to cover the whole Peshawar so all city side will be managed by Universal Cable Network only by providing customers with quality service and non stop entertainment & information...

Marketing Objectives: “Our objective is to strengthen our business and reputation, so that it should be trusted where ever Universal Cable is watched”.











UNIVERSAL CABLE TV

4.5 Strategy The following are the two key strategies Universal Cable will focus on: Universal Cable’s first strategy focuses on attracting new customers. Universal Cable plans on attracting these customers by: Advertising in print & electronic media the positive uses • By wet sampling • Universal Cable's second strategy will be focused on retaining existing users. Universal Cable plans on retaining this type of customer by:











UNIVERSAL CABLE TV

A Few Specific Marketing Efforts: Advertisements in: Print Materials • Local Newspapers • Billboards, posters & leaflets etc. •

c). Product/Service Product/Service This topic is a critical reminder of the fact that U niversal Cable is a service business. The success of our business depends upon the quality of the service we offer and delivering that service consistently. Universal Cable is dedicated to delivering this quality service .

Product Features Universal Cable is offering satellite TV channels. Universal Cable is heading delivering the most consistent cable service to its users through easy to use













UNIVERSAL CABLE TV

5. Financials, Budgets, and Forecasts The marketing plan is built on these truths:











UNIVERSAL CABLE TV

5.2 Sales Forecast The cable industry in Peshawar is growing at an average rate of 9%. As for Universal Cable is concerned, it is growing at an average rate of 6%.Currently the Universal Cable sales are worth Rs.











UNIVERSAL CABLE TV

6. Implementation/Co Implementation/Controls ntrols 6.0 Controls











UNIVERSAL CABLE TV

Difficulties and risks: •

Proble Problems ms of genera generatin ting g visibi visibilit lity, y, a functi function on of being being an cable cable for a relati relativel vely y less less experi experience enced d organization











UNIVERSAL CABLE TV

References: Interviews:

marketing plan Cable Business

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