Business Plan of an ISP Excel Net

Submitted to: Sir Aziz Naveed Sheikh Submitted by: Tanvir Baber Ali Abbas Mohammad Irfan Waqas Shafiq Arsalna Azhar

Acknowledgement
We are very thankful to Almighty Allah that He has given us the knowledge, capacity of mind and wisdom to complete this project. We are also very thankful to our honorable and respected teacher sir "Aziz Naveed Sheikh" that he has given us support and knowledge to complete this project. In last we are also very thankful to the again Sir Aziz Naveed Sheikh for his cooperation that he has provided us the material which proves very helpful in our project completion. We are also very thankful to our friends for their valuable information in this regard. We have also very benefited with the research work in this regard which comes from different directions

Executive Summary

We take this honor and pleasure in submitting the concise and concrete business plan of establishing an ISP in Pakistan, which serve as a basis and cover the fundamental aspects of the marketing an ISP and to make it convenient for our group to market our new business. While envisioning the mission of the company, we have laid down the broad based objectives and to implement those objectives, the strategies are designed. In this context a detail scenario of ISP and Telecom industry, its scope, the current market situation, product and competitors are stated. As there are a lot of ISPs are working in Pakistan so we have also included the complete SWOT analysis of ISPs. Moreover a deep analysis of market segments, using of internet, market trend, user demand and the market share of different competitors are given. Our company is a company driven to provide customers with a complete solution to their entire current and future Internet and private network needs. The company's customer base includes all consumers and all small- to medium-sized businesses, including start-ups. We have included the insertion plan; a complete media plan which include where to advertise and when to advertise our new ISP. In the end cash flow and profit & loss statement are in the preparation of the plan. (Group Members) Tanvir Baber Ali Abbas Mohammad Irfan Arsalna Azhar Waqas Shafiq

Table of Contents
Acknowledgment Executive Summary Table of contents 2 3 4

Ch No 1

Introduction
Background Why to choose the name Objective Budget Available Services Technical Services Benefit of DSL 6 7 8 9 10 11 12

Ch No 2

Strategies to Follow
Marketing Strategies Media Advertising Strategies Competitive Analysis Current Market situation Porter Analysis Competitor Analysis SWOT Analysis 13 14 15 16 18 23 27

Ch No 3

STP
Segmentation Targeting Positioning Tagline Unique selling proposition 30 31 32 33 33

Ch No 4

4 Ps
Product Strategies Price Strategies Distribution Strategies Promotion Strategies 35 37 39 40

Ch No 5

Advertising and Media

Media Plan Summary Pre Launch Activities Launch Activities Post Launch Activities 41 41 42 44

Ch No 6

Insertion Plan
Print Media Insertion Plan Out Door Media Insertion Plan Electronic Media 46 47 51

Ch No 7

Cash Flow
Pre launch Activities Launch Activities Post Launch Activities 52 53 54

Ch No 8

Graphical Presentation of Cash Flow

Pre Launch Activities Launch Activities Post Launch Activities Over All Activities Month wise 56 57 58 59

Ch No 9

Business Promotion Tools

Brief about the tools Event Management Personal Selling Conclusion References 60 60 61 63 64

Introduction and Background

EXCEL Net the suggested name of our ISP will be a leading ISP in Pakistan in near future. Its headquarter is currently situated at Gulberg Lahore. From Lahore it will disperse to the other city of Pakistan especially Karachi, Gujranwla, Faisal Abad and Islam Abad.

EXCEL Net offers Total Internet Solutions for the business and family alike. With ever expanding horizons, EXCEL Net aims to be the largest Internet Service Provider in the country with features and facilities like 24-hour technical assistance, 7 days a week, best modem to user ratio preventing busy signals, powerful, direct connection via satellite to the Internet backbone, firewall security features to safeguard against hackers. EXCEL Net will plan to distribute approximately 280Mbps bandwidth countrywide and approximately 18000 dialup ports after launching to 6 months which will be completely geared towards providing customers with timely, reliable, superior services and solutions. . We take pride in introducing a new service from the most reliable platform for Internet and Data Communication in the country, focused and committed in offering TOTAL BROADBAND SERVICES. EXCEL Net is a leading Internet and Data Communication company that is focused on empowering businesses with cutting edge technology. We are focused on delivering high-quality services and solutions in many critical domains. The synergistic effect of its experience, expertise and quality has helped to propel are customers to a new high plane of competitive advantage in the market place EXCEL Net offers DSL technology, enables much higher speeds ranging from 64 Kbps to 3 Mbps (which is first time in Pakistan) across the telephone lines from our Network Center to customers office premises. We plan to have access to multiple

International Gateways, which has made us more complete and more reliable to provide tailor-made customized solutions to meet the customer needs. In future, EXCEL Net will earn the recognition as leading Internet and Data Service Provider in the country due to its foresighted policies and managerial skills.

Why to choose the name

Here we have used the name of our ISP the EXCEL Net because: 1. This name relates to our services like outclass service of internet provider. 2. Moreover, when our target customers will confront our advertising message will surely comprehend that the ISP surpasses all the other ISPs. 3. This name implies a good image in the customer mind.

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Objective

The objective and mission of EXCEL Net is to provide customers with a complete solution to all their current and future Internet and private network needs. EXCEL Net will establish a reputation for quality work and plans to continue to enhance its image in the industry. The company seeks to become a well-known and respected provider of advanced network solutions by:

Increasing service offerings. Increasing availability and accessibility to current and future customers. Creating innovative, unique, and cost-effective solutions to problems currently faced by customers. To revolutionize the way, the communication technology is perceived To become an internationally acclaimed company for its excellence To deliver most viable services and solutions to our customers, while meeting the international standards with the pace of their journey, towards their vision, they adhere to their values as close as possible!

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Budget Available

The budget which is available to us is 3 karore rupees which will be allotted to the following activities. 1. Electronic Media (Radio Spots and TV Commercials) 2. Print Media Advertising 3. Outdoor Advertising 4. Event Management 5. Personal Selling 6. Consumer Sales Promotion 7. Trade Sales Promotion

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Services
EXCEL Net provides services like Web hosting, domain registration, shared, leased and committed bandwidth solutions services to the corporate sector. Some of the services are as follows:

Satellite Broadband Solutions Internet Bandwidth Solution Corporate Leased Line Access Internet Downlink Services Network Designing for Inter-Branch Connectivity ISDN Services DDP Dedicated Dialup Port services Video Conferencing Wireless Solutions Corporate Mail Solutions Customized Web mail solution (POP3 Based) Web-Hosting Services Application Hosting FTP Services Real Time Branch Office Connectivity Domain Registration and Mapping Managed Firewall Services Incoming Virus Free Emails for Whole Domain (Anti-Virus Mail Guard-Trend Micro) Incoming Virus Free Emails for Mail Boxes created on Relay (Anti-Virus Mail Guard)

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Technical services
EXCEL Net also provides the following technical services to its users.

Powerful, direct connection via satellite to the Internet backbone. Complete ISDN compliant hardware for faster information access. Best modem-to-user ratio to prevent busy signals. 24-hour, 7 days a week technical assistance. Firewall security features to safeguard against hackers. State-of-the art network design using Sun, Cisco and US Robotics equipment.

DSL - Digital Subscriber Line, having over 1 billion worldwide subscribers today, it is a broadband communication technology designed for use on regular phone lines. It has the ability to move data over the phone lines at speeds up to 140 times faster than the fastest analog modems available today. DSL is the fastest growing last-mile broadband medium in Pakistan. It is inherently based on ATM (Asynchronous Transfer Mode) technology. Both large enterprises and SMEs have adopted DSL connectivity in large numbers during past three years in Pakistan and have a promising future.

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Benefits of DSL offered by EXCEL Net

As we are striving to give our customers quality services so we will use DSL line in this regard which have the following benefits for the users. Single point of contact and responsibility for Internet and Data Services. Local phone line testing arranged & coordinated by EXCEL Net on customers behalf. Uninterrupted high speed and Always On Internet and Data Connection. No phone bills, always-on. Tested for reliability, flexibility and security. Economical compared to other mediums.

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Strategies to follow
As a customer-oriented company, EXCEL.Net offers total Internet Solutions for the business and family alike with facilities such as 24-hour, 7 days a week technical assistance, best modem-to-user ratio to prevent busy signals, powerful, direct connection via satellite to the Internet backbone, and firewall security to safeguard against hackers. To maintain this effort we will follow the following strategies with respect to gain the competitive advantage in such a volatile environment. Our strategies will cover the following fields. Marketing Strategies Media Advertising Strategies

Marketing Strategy
Our strategy is to achieve name recognition and attract customers by aggressively pricing its services. Once customers have been acquired, the company will seek to offer them additional services which will increase margins and provide them with useful solutions they would not otherwise find. The company will also implement a low-cost strategy. This will be achieved by working to establish and develop agreements with local media companies to exchange services for discounted advertising and other exposures. Our market strategy is to build on its core portfolio of products and services using the company's expertise in the ISP industry. The company will leverage its discounted services to help provide secondary income streams. For instance, the company plans to launch free email services, business directories, and other similar services which will attract current and potential customers to our Web pages. These "page views" will be used to

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generate advertising revenue, as well as increase exposure of our own products and services. EXCEL Net will be able to excel in the market because the company is small, highly focused, and motivated. The company can respond quickly to changing opportunities and take advantage of the latest technologies. The company plans to expand its marketing efforts, service offerings, and production. It is anticipated that additional services will be offered and more personnel hired within 30 days of initial capital funding. EXCEL Net plans to capitalize on the following areas of growth:

High-speed Internet connectivity via DSL, Wireless, and other technologies. Web hosting and design tailored to small, local businesses. E-commerce and associated online databases.

To generate sales, the company uses direct marketing, computer reseller and repair facilities, and high-traffic areas (e.g. store checkout stands). Following activities are pursued by the marketing department.

Advertising design and placement. Public relations schedules and press releases throughout each year. Creation of annual advertorial (advertisement/tutorial) themes for trade journals and industry conferences. Planning and execution of all industry conferences, including the reservation of space, booths, personnel, messages, literature, etc. Collection, analysis, and internal dissemination of competitive information. Creation and maintenance of all corporate literature. Design, maintenance, and monitoring of websites. Design and creation of sales support material. Collection and dissemination of client testimonials.

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Media Advertising Strategies

Marketing initiatives will focus on four areas: Server Hotel facilities, Web hosting, dialup access, and content provision. Marketing activities will be concentrated in the following categories:

Contact Campaigns. This initiative will encompass various methods of reaching potential customers to generate interest, followed by direct mail to the potential customer.

Print Advertising. Ads will be developed and placed in several industry publications, Newspapers and magazines. Trade Shows. The company will participate in selected local and national shows that will provide an opportunity to develop exposure. This is a very effective tool in creating awareness and stimulating lead activity.

Industry Organizations and Associates. The recommendation is to join a number of organizations that are relevant to the company as a whole. This initiative will create awareness of the company within the industry, and provide networking opportunities.

Telemarketing Campaign. Telemarketing activities geared to identify qualified leads, follow-up on sales progress to the qualified leads, and assurance that new potential contact lists are current and accurate.

Promotional Giveaways. This is a traditional way of advertising a company's name by giving something away. This will be used in conjunction with community service organization fund-raising efforts and traditional advertising.

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Competitive Analysis
Current Situation Analysis
Before starting a new business it is very necessary to know the big and small players of that particular filed. In this connection current market situation of that field should be examined. Current market situation is based on the factors like Market, Product and Competitors .So the current market condition with reference to internet in Pakistan is as follows.

Using Porters Analysis

With reference to Porter we have analyzed the market situation of internet. Following five forces are driving the industry competition. 1. Threats of new entrants 2. Rivalry among the existing firms 3. Threats of Substitute Products or services 4. Bargaining power of Suppliers 5. Bargaining power of buyers These five driving forces are analyzed as low, medium or high in strength. Name of Driving Force Threats of New entrants (ISP) Rivalry among the existing firms (WOL, Brain, Cybernet, Paknet etc) Threats of substitute products and services Bargaining power of suppliers Bargaining Power of Buyers Impact Medium by exerting the barriers to entry High every firm is striving for the quality service Low High (More Price of providing the services) Medium (Low Switching cost)

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Backbone (peering) Telecos Wholesalers

Low barriers to entry Low capital requirements Low regulations

National, International, Local ISPs

Price QoS Access Speed Service Customer Service

Consolidation Security

Telecos Free access providers Other motive providers Portals

Consumer, wouldnt pay Low switching cost Little or no ability to backward integrate

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IP Telephony is still in its infancy. There is no doubt that this technology is changing the way people communicate and conduct business, but many have reservations about the Quality of Service (QoS) that can be achieved. In the very early stages of IP Telephony the lack of interoperability between products from different vendors meant the majority of the market for such products lay with hobbyists and enthusiasts. It was not seen as a viable way to conduct business, even if savings on call costs were considerable. Table below shows the percentages of sales to users in various sectors between 2000 and 2005. Hobbyists Enterprise Telecos 94% 2% 4% 90% 3% 7% 75% 5% 20% 55% 10% 35% 45% 15% 40% 30% 20% 50%

2000 2001 2002 2003 2004 2005

The growth of IP Telephony in the enterprise sector looks set to rise as companies aim to capture new markets and make considerable cost savings by bypassing the PSTN (Public Switched Telephone Networks).

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Pakistan Network Traffic

This figure shows that in Pakistan network is still in the process of growing so there is a dire need of establishing an ISP which shows the high authority with respect to the quality of service.

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Now with respect to the worldwide internet users the following graph depicts the growth in this term.

The number of online users worldwide has also increased both commercially and for home use. This growth has led to a whole new way of life for individuals and a whole new way forward in business. Almost anything can be found or bought on the Internet somewhere. Above figure shows the ever increasing number of Internet users worldwide who take advantage of what the Internet has to offer

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Competitors Analysis
As there are a lot of ISPs in Pakistan but the main competitors of our ISP are the: 1. Cybernet 2. WOL 3. Brain net

Cybernet
CYBERNET is the largest Internet and Data Communication Network Service Provider in Pakistan. The company offers various services to the corporate and consumer sectors and it is exploring the possibilities to extend several other unique online services to its over 350,000 valued customers. Since its commencement in March 1997, in the city of Karachi, having its share of trials and tribulations, Cyber.Net has made a name for itself as one of the leading ISP's in the country. A group company of the Lakson Group of Companies, Cyber.Net has maintained the tradition of dedication and service par excellence, which has been, and continues to be, its motto. Cyber.Net offers Total Internet Solutions for the business and family alike. With ever expanding horizons, Cyber.Net aims to be the largest Internet Service Provider in the country with features and facilities like 24-hour technical assistance, 7 days a week, best modem to user ratio preventing busy signals, powerful, direct connection via satellite to the Internet backbone, firewall security features to safeguard against hackers. Cyber.Net with approximately 280Mbps bandwidth countrywide and approximately 18000 dialup ports at present is completely geared towards providing customers with timely, reliable, superior services and solutions.

WOL
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World Online (Internet Lifestyle) WOL Telecom Limited (Formerly Cyber-Soft Technologies Limited) is a leading provider of Internet and data services of Pakistan. Under the well-established brand name of WOL, delivering dial up Internet, broadband and data access services to consumer and businesses across the country in more than 350 cities across Pakistan. WOL currently employs more than 200 engineers and business graduates from leading universities like MIT, Harvard, BU, LUMS and FAST. WOL is the group company of one of the largest business groups of Pakistan, The Shafi Group, which consists of nine different ventures in leather, chemical, leasing and IT industry and employs more than 1500 people with annual exports of US$ 100+ million. Operating on a single platform using leading edge technology, the network offers broad range of IP and data services at company maintained sales outlets WOL Net Dokaans and round the clock customer support in 20 cities country wide. WOLs complete line of services include: Dial Up access, IP VPN, Fixed Access, Web Hosting, WOL X.25, WOL ATM, Data Services and Software Service. In the fast pace growing demand for broadband Internet, WOL recently introduced its DSL (Digital Subscriber Line) services. DSL is an access technology that converts ordinary copper telephone line into access paths for high-speed data communications (data, audio & video). WOL is focused at providing you with maximum value for your money by not just offering Internet connectivity but providing you with Internet solutions along with differentiated features.

Their Objective
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To attain market leadership and expansion in the IT and communication sectors by leveraging ISP/ASP, Data Networking and Software capabilities.

Brain Net
Brain NET is pioneer in Internet Service industry in Pakistan and considered to be largest Internet service provider with greater geographical coverage and vast range of internet solutions for consumer and corporate sector. Being a Group of companies; Brain Computers was started back in 1982 with successful business of selling computer hardware solutions. In 1992 Brain has an honor of innovating emailing system first time in Pakistan history and received a lot of appreciation. In 1996 Brain incorporated BrainNET to commence Internet Services and retained an honor of First Internet Service Provider of Pakistan. Being pioneer in ISP industry, we always stood ahead all in innovating solutions. Brain has got largest Optical Fiber network in Lahore over which top IT companies are subscribed to. We are also been granted Local Loop License (LLC) by Pakistan Telecommunication Authority (PTA) to run Telecom operations with in Lahore region under BrainTEL.

Their Mission
To become leader in innovation and contribute IT awareness towards society. To be dynamically growing organization in ISPs and telecom industry by achieving internal & external customer satisfaction, superior & beneficial solutions, brining internet into common persons life and to provide value of your money. Being Internet Service Provider and technology seeker, we believe in creating internet & technology awareness towards common public. Further, keeping in view 26

Pakistani job market we try to contribute by becoming favorable employer and facilitate human resources at our best so that they can meet common needs with high esteem.

Why to Include these ISPs as Competitors

We have included the above ISPs in our main competitors list because. 1. These three ISPs are well known ISP in Pakistan 2. They provide the quality services to their clients. 3. They are using different augmented services like excellent customer feedback and excellent handling of customers inquiries to satisfy their needs.

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SWOT Analysis of Internet Service Providers

Strength

The main strength is the offering of reliable services ISPs help to eliminate wasted bandwidth by not transporting the 60% of normal speech which is silence. ISPs using the IP - the underlying protocol which is supported by most platforms and is independent of the transport protocol used. IP is an open standard and has been around for many years. Only one physical network is required to deal with both voice/fax and data traffic instead of two physical networks. Having only one physical network has the following advantages:
o o o o

Lower physical equipment costs. Lower maintenance costs. Increases the ability to exploit new technologies. Increases bandwidth efficiency.

IP Telephony can provide considerable cost savings on long distance and international calls as the PSTN is bypassed using VOIP Gateways. Unified messaging systems can be achieved by sending/receiving e-mails and faxes from PC's phones, fax machines or handheld de

Weaknesses
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While there are many aspects of this technology which provide considerable benefits, the technology is still very young and problems remain. The following paragraph looks at some of the weaknesses of this technology and their consequences. The Internet is not the best medium for real time communications. Individual packets can take different routes and varying delays can be encountered and packets lost in transit. Waiting for delayed packets or retransmission of lost packets can result in considerable degradation of quality. Long delays in transit can affect quality so much that the technology can become unusable, though many vendors do have solutions which aim to negate the degradation suffered due to transit delays. While some standards have been set by the ITU, the technology is not fully standardized and there is no guarantee that products from different vendors will be interoperable. Some vendors are trying to resolve this problem by forming groups and making guarantees about the products in the group but this is only a partial solution - vendors outwit the group cannot guarantee interoperability.

Heavy congestion on the network can result in considerable degradation of service as IP is not good at providing QoS (Quality of Service) guarantees. Some organizations feel that the QoS needs to be improved before they will invest heavily in IT Telephony solutions. Others see the immaturity of the technology and lack of standards across the board as a major drawback.

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Opportunities
Internet awareness is still in the growth process as people becoming familiar more and more with the passage of time. With the growth in technology people want to incorporate their work with the research that is done on the other parts of world in this connection they need a high connectivity which is only provided through the use of internet. Many vendors offer the ability to incorporate Virtual Private Networking (VPN) with relative ease into the IP Telephony solutions they provide. This allows any transmission to be encrypted using a number of cryptographic techniques and providing security by transmitting the communications through a 'tunnel' which is set up using PPTP (Point-to-Point Tunneling Protocol) before commencing communications IP Telephony allows companies to exploit Computer Telephony Integration to its full extent. For example, a user visiting the company web site can click on a link and speak to customer service or sales representatives directly. This allows traditional telephone sales/ helpdesks to be linked to ECommerce which can lead to more efficient processing, and not to mention increased sales. The convergence of communications technologies allows greater control over communications, most vendors provide logging and accounting facilities whereby all usage can be monitored

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Threats
A commercial threat may be posed if the company is slow to incorporate new technologies compared to its main competitors. Revenue generated through E-Commerce is expected to rise sharply over the next few years and IP Telephony and CTI (Computer Telephony Integration) techniques provide a new way of attracting business and customers If the converged solution fails, all communications are lost. This can result in a loss of new business and / or extremely unsatisfied existing customers. Since all the telephony needs of the company are integrated, the security policy of the company should be reviewed to enhance current security measures. The system must be protected from attack by malicious intruders wherever possible, loss of network services do to a successful attack could prove catastrophic Lack of interoperability between vendor products could, potentially, cause problems at a later date Quality of service can be compromised when network traffic is high. This could result in a decrease in productivity, conflicting with the notion that an IP Telephony solution increases productivity.

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STP
Segmentation
Segmentation is the process of dividing the whole market in different segments which are homogenous within the segment and heterogeneous outside. Cybernet has segmented its market on the basis of:

Demographic Segmentation
On the basis of demographic we first segmented our corporate users in the core segment and then students on the secondary segment. There will be another segment of the home users.

Geographic Segmentation
Geographically we will first cover the whole market of Lahore and then move to the market of Karachi, Islam Abad, Gujranwala and Azad Kashmir.

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Target market
After segmentation the second thing is to serve the target customers so Cybernet targeted the:

Primary Target Market

Our primary target market is the corporate sector like Multinational organizations, Telenor, Mobil ink, cash and carry and warid.

Secondary Target Market

Our secondary target market is the Students, home users and: The people from Upper classes The people from middle classes

Positioning
As our primary target market is corporate sector and secondary target market is the consumer from upper and Middle class so we positioned our services in the mind of target market through providing ultimate internet speed.

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Logo
With reference to our ISP name EXCEL we use the following logo.

Why to use Logo

We have used this logo because 1. This logo creates the awareness about our ISP name EXCEL. Hence it proves very helpful in creating awareness among the users. 2. It covers the user easiness to handle all the information 3. The semicircle shows the eclipse shape of the world to whom the user is connected to the world through our ISP. 4. The round spot in the eclipse shows the movement of information in the world. 5. Different color of arms of user shows the two kind of market to whom we are targeting like corporate sector and students.

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Tagline
Tagline is the last sentence or the short statement at the end of TVC. We use the following taglines: "The Ultimate net speed Experience"

Why to use
We have used this tagline because when the internet users came to know about our advertisements they clearly distinguish us as a high speed internet service provider.

Unique Selling Proposition

As we want to become the leading ISP in Pakistan, it shows our competitive edge to over competitors. Our USP is "Use EXCEL Net to get Ultimate high speed Internet Experience"

Why to Use
We have used this unique selling proposition because it shows our competitive edge to our competitors.

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Four P'S
Product Strategy
As our ISP is a service based company and it provides the service of internet, so our service strategies are as follows.

Services
EXCEL Net provides services like Web hosting, domain registration, shared, leased and committed bandwidth solutions services to the corporate sector. Some of the services are as follows:

Satellite Broadband Solutions Internet Bandwidth Solution Corporate Leased Line Access Internet Downlink Services Network Designing for Inter-Branch Connectivity ISDN Services DDP Dedicated Dialup Port services Video Conferencing Wireless Solutions Corporate Mail Solutions Customized Web mail solution (POP3 Based) Web-Hosting Services Application Hosting FTP Services Real Time Branch Office Connectivity Domain Registration and Mapping Managed Firewall Services

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Incoming Virus Free Emails for Whole Domain (Anti-Virus Mail Guard-Trend Micro) Incoming Virus Free Emails for Mail Boxes created on Relay (Anti-Virus Mail Guard)

Strategies
We take into consideration the following necessary things while to render our service. Performance: Our main emphasis is on high performance service provider so we tend to persistent regarding the speed and performance of internet. Reliability We make our service reliable by using new technology like VSAT. Durability We make our service durable by giving the users quality efforts to improve their satisfaction at reasonable cost.

Packages Strategies
We have planned to launch these following packages with the passage of time. 1. For Corporate sector we have planned an Ultimate DSL line of 3MB at affordable rate for the first time in Pakistan. Its rate would be 1000 Rs per month. 2. For home users and for students an unlimited Dial up connection will be provided at affordable rates i.e 499 Rs per month. 3. Two cards are also distributed to students having name Excel Better and Excel Best. Excel Better has 5 hours in 10 Rs while Excel Best has 12 Hrs in 20 Rs.

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4. At August a new card will also be distributed named Excel Azadi having unlimited free nights for the whole month. Its price would be 100 Rs.

Pricing Strategy
Price is one of the revenue generating elements of the traditional marketing mix, and price premiums are one of the most important equity benefits of creating brand awareness and strong, favorable and unique brand associations. To set the price consumer perception and value of the product should be kept in mind. So we are currently using the price penetration strategy. Price Penetration Strategy As we are the new entrant in the market so there is a need to capture the market first. For this purpose we use the price penetration strategy in which we involve in setting the low price of our services to capture the market share and to gain competitive advantage. In this connection we introduce the new card scheme for the home and corporate users as. Different Excel students cards are distributed. These cards having the scheme like one who uses the net three hours continues the fourth hour will be free. We will also issue cards for the students who are very low priced. These cards carrying the name like EXCEL Better and EXCEL Best. EXCEL Better has 5 hours in only 10 rupees while EXCEL Best card having 12 hours in only 20 rupees. We will also be serving the corporate sector with a low rate of DSL. Its price will be 1000 Rupees for one moth.

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Distribution strategy
The manner by which a product is sold or distributed can have a profound impact on the resulting equity and ultimate sales success of a brand. So the marketing channels are defined as "sets of interdependent organizations involved in the process of making a product or service available for use or consumption." Channel strategy involves the how many channels are used for the distribution of products and services. There are mainly two channels are used for this purpose: Direct Distribution Channel Indirect Distribution Channel We will use both these types of channels like we are serving to the corporate through direct channel by rendering them the service of DSL And for serving the home users and students we use Dealers network. We plan to have four main dealers in Pakistan in Karachi, Lahore, Rawalpindi and Islamabad. We believe that for Pakistan to be a global communications hub, it is important that our customers be able to get in touch with people from all over the world, 24 hours a day. A reliable and robust network infrastructure is the key to ensuring that our services are kept up and running round-the-clock. So we want to become specialize in flexible and innovative services that are based upon open systems to fulfill our customers end to end communication needs with maximum clarity and control.

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Promotions Strategy
We will use print media and outdoor advertising for its promotion. However in spite of this we will also use many tools in its promotion like:

Publicity Word of Mouth Emphasis on Event Marketing Live Concert Outdoor Media Electronic Media (Cable Television) Radio

We are initially going to launch our ISP through Outdoor and print media advertisement.

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Advertising and Media Plan Outlines:

MEDIA PLAN SUMMARY
The Media Plan is developed for an ISP Excel Net This media Plan is consisted of three major segments in both ways one is showing the all activities detail and other is showing the cash flow of these activities month wise i.e. as under

Activities detailed for one fiscal year:

Pre-Launch Activities Launch Activities Post Launch Activities (Rs 7,500,000 (Rs 12,500,000 (Rs 1,000,000 approx) approx) approx.)

Every segment of launch stage, there are two types of activities i.e. ABL (Above the Line Activities) and BTL (Below the Line Activities) that will be on road time to time which will create the pull and push of product in the market accordingly. These all activities are designed and developed the keeping in mind both aspect i.e. B2B and B2C (Business to Business and Business to Consumer) which will be enforcing directly and indirectly to target market and will get desired results. Moreover there are details of these activities in the end which also clear the picture of this Media Plan for further understanding.

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Excel Net
Launching Strategy Brief
Excel Net is an ISP which will provide fast internet services to users at affordable rate and our strength will be the customer satisfaction

Objectives:
To introduce Fast Internet services in Pakistan To give maximum satisfaction to the customer at minimum cost To earn profit yet satisfying customers needs To capture most of the Commercial zone by providing them fast internet services at nominal rates.

OVERALL STRATEGY
We will launch the Excel Net by aggressive publicity through direct marketing, personal selling and outdoor advertising. Once this has been achieved the Publicity of the service should then be reinforced through other advertisement tools like print media and electronic media.

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PRE-LAUNCH
Choice Of Brand name for the Internet service, that is we have chosen Excel Net Design the Logo Preparation of Print Ads Mail Shots Outdoor site Selection ( Billboards ) Placing of Hoardings Teaser campaigns in some Newspapers and magazines.

LAUNCH
Press Conference Ads in DAWN, THE NEWS, DAILY TIMES, JANG, AURORA Opening Ceremony in 5 star Hotel of Lahore Sales Force training

Post Launch
Direct marketing by sending the sales force to multinational and national organizations Placing of hoardings at Gulberg, Berket market, Davis road and Campus area. Run the ad on Radio Fm 101 and Fm 106.2 and FM 89.

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A TVC for cable television

MEDIA
The awareness campaign should be run on the Following media: Newspapers IT Magazines Hoardings Radio Cable

Publications
The newspaper that we suggest for the advertisements are: Dawn The News Jang Business Recorder Din Express Pakistan Jinnah Akhbar-i-Jehan Aurora Net Mag Herald Jang Sunday Magazine Express Sunday Magazine Din Sunday Magazine

Magazines:

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Why to choose these publications

We have used these publications because These publications has maximum readership These publications and magazines are equally important for both students and corporate sector especially the Dawn and Jang respectively. We plan for heavy burst of insertion for initial two months and then mild burst for 6 months and then low burst for the remaining 4 months by keeping in view of our budget.

Advertising
A series of print ads should be developed for targeted placement The ad size should range from full page to quarter page for different magazines, newspapers and trade publications. Posters and brochures are developed for sending them to different outlets and corporate sectors.

Out door Advertising

We plan to use the two cities of Pakistan for placing of hoardings. These are Lahore and Islamabad.

At Lahore
Different hoardings are placed firstly at Lahore at the following locations Gulberg Main Market PU Campus bridge Davis Road Mall Road

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Chauberji square

Why to choose
We have used these areas for the following reasons 1. As our core target market is the corporate sector and the most business world resides and working in Gulberg, Davis road and Mall road. 2. Our secondary target market is the student so hoardings at Chauberji square and PU Campus Bridge will entertain the students.

At Islamabad
Different hoardings will also be placed at Islamabad at the following locations F-7 Jinnah super market Blue Area I-8

Why to choose
We have used these sectors of Islamabad because: 1. F-7 and blue area are the corporate areas and these are the hub of every industrial activity takes place in Islamabad. 2. I 8 sector belongs to the educational activities and students are our secondary market.

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Hoardings which are used for this purpose would be of the size about 10x20 to 40x15

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Insertion Plan for Print Media

We have made three insertion plans with reference to our activities i.e Pre launch activities, Launch Activities and Post Launch Activities.

Cash Flow of Activities

Pre launch Activities Launch Activities Post Launch Activities TOTAL 5,494,870 Rs 8,240,790 Rs 7,489,890 Rs 21,225,550 Rs

A complete detail of the spending of these activities are given as

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Out Door Media Insertion Plan

We have also divided the plan of outdoor media into three activities. Pre Launch Activities Launch Activities Post Launch Activities Total 1,270,200 Rs 1,750,200 Rs 2,665,000 Rs 5,685,400 Rs

Pre Launch Activities

For the Month of July 2007 Position of Hoardings Barkat Market Chauberji Square Mall Road Gulberg Main Market Davis Road F-7 Jinnah Super Market I- 8 Sector Blue Area Size of Hoardings 10x20 10x20 10x20 10x20 10x20 10x20 10x20 10x20 Days to Place the Cost hoardings 15 15 15 15 15 15 15 15 Rs. 120,000 135,200 175,000 220,000 105,000 170,000 135,000 210,000 1,270,200

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Launch Activities

For the Month of August 2007 Position of Hoardings Berket Market Chauberji Square Mall Road Gulberg Main Market Davis Road F-7 Jinnah Super Market I- 8 Sector Blue Area Size of Hoardings 10x20 10x20 10x20 10x20 10x20 10x20 10x20 10x20 Days to Place the Cost Hoardings 20 20 20 20 20 20 20 20 250,000 175,200 295,000 280,000 155,000 190,000 185,000 220,000 1,750,200

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Post Launch Activities

For the Remaining ten months from Sep, 07 to June, 08
Position of Hoardings Berket Market Chauberji Square Mall Road 10x20 5 5 5 5 5 25 10x20 5 5 5 5 5 5 30 Size of Hoardings 10x20 Sep Days 5 Oct Days Nov Days 5 Dec Days 5 Jan Days 5 Feb Days Mar Days 5 Apr Days May Days 5 Jun Days Total Days 30 Cost Rs

410,000

385,000

305,000

Gulberg Main Market Davis Road

10x20

25

445,000

10x20

25

335,000

F-7 Jinnah Market I- 8 Sector Blue Area

10x20

25

320,000

10x20 10x20

5 5 5

5 5

5 5

20 20

245,000 220,000 2,665,000

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Electronic Media
We have plan to use two media for this purpose Radio Cable Television

Radio
For Radio we plan to run the following massage at Fm 101, Fm 106.2 and Fm 89

Why to Choose
We have plan to choose these stations because 1. FM 101 has a maximum coverage as it is listened in 99 cities of Pakistan and has 8 stations. 2. It is largely listened by the corporate sectors. 3. City FM 89 is listened by the High class segment and hence we can target them through this. 4. FM 106.2 is a song station and it keeps on humming students and other people so our ad on this will target them precisely and enjoyably.

Script
High speed connectivity is no longer a problem now. Just connect yourself through EXCEL Net and take the pleasure to move along the full and quick stream of information. As we promise to give you Ultimate high speed Internet Experience.

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Cable Network
We plan to choose the three cable operators at Lahore 1. NBC 2. World call 3. Star

Why to choose
We have used cable network because 1. It has high viewer ship 2. It is inexpensive media 3. Corporate people and students too take keen interest to view the cable programs 4. Moreover these cable operators are rendering their services mostly to our target market.

Script
The same script as for the radio will run on the cables throughout the year in the form of news run along the Sports Program and along the news session. The message would be High speed connectivity is no longer a problem now. Just connect yourself through EXCEL Net and take the pleasure to move along the full and quick stream of information. As we promise to give you Ultimate high speed Internet Experience. Log on to www.Excel.net.pk for further detail.

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Cash Flow
. Pre Launch Activities Launch Activities Post Launch Activities Total 7,354,570 Rs 11,015,990 Rs 11,666,540 Rs 30,037,100 Rs

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Cash Flow for Media Plan Pre Launch Activities

Month Pre Launch Activities BTL Activities Press Release in Newspapers Press Conference Dealers certification ceremony 5 Hoardings in Lhr of size 10x20 3 Hoardings in Isb of size 10x20 ATL Activities Teaser campaigns in News Papers Teaser campaigns in Magazines Cable Television Radio FM 101, FM 106.2, FM 89 Production Cost Sales Force job Designing cost of press ad Designing cost of Magazines Designing Cost of Hoardings Designing Cost of POS Material Radio/Cable TV Script writing Total Cost
Jul-07 Aug-07 Sep-07 Oct-07 Nov07 Dec07 Jan08 Feb-08 Mar08 Apr-08 May08 Jun-08

Total

30,000 45,000 35,000 755,200 515,000

30,000 45,000 35,000 755,200 515,000

4,963,87 0 531,000 200,000 150,000

4,963,870 531,000 200,000 150,000

100,000 4,500 5,500 7,500 3,500 8,500 7,354,57 0

100,000 4,500 5,500 7,500 3,500 8,500 7,354,570

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Cash Flow for Media Plan Launch Activities

Month Launch Activities BTL Activities Exhibition+Event Mgt.+Conference Hoardings For One Month 5 Hoardings in Lhr of size 10x20 3 Hoardings in Isb of size 10x20 ATL Activities Campaigns in News papers Campaigns in Magazines POS (Printing) Leaflets, Brouchers or flyers Cable Television Radio FM 101, FM 106.2, FM 89 Production Cost Sales Force job Designing cost of press ad Designing cost of Magazines Designing Cost of Hoardings Designing Cost of POS Material Radio/Cable TV Script writing Total Cost
Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08

Total

350,000 1,155,200 595,000

350,000 1,155,200 595,000

7,719,790 521,000 100,000 250,000 175,000

7,719,790 521,000 100,000 250,000 175,000

150,000

150,000

11,015,99 0

11,015,990

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Cash Flow for Media Plan Post Launch Activities

Month Post Launch Activities BTL Activities Live Concert+ IT Conference Hoardings for Ten Months 5 Hoardings in Lhr of size 10x20 3 Hoardings in Isb of size 10x20 ATL Activities Campaigns in News papers Campaigns in Magazines Cable Television Radio FM 101, FM 106.2, FM 89 Production Cost Sales Force job Designing cost of press ad Designing cost of Magazines Designing Cost of Hoardings Designing Cost of POS Material Radio/Cable TV Script writing Total Cost Total Cash Flow Month wise
1,063,50 0 1,698,69 0 774,050 690,000 629,040 1,952,03 0 613,000 1,234,20 0 724,700 2,287,33 0 260,500 235,000 60,000 48,000 1,098,69 0 376,050 68,000 40,000 45,000 335,000 257,040 132,000 45,000 55,000 1,657,03 0 155,000 93,000 55,000 529,200 458,700 36,000 45,000 45,000 45,000 35,000 1,857,33 0 6,984,540 564,000 290,000 228,000 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08

Total

350,000 250,000 210,000 120,000 130,000 190,000 100,000 190,000 120,000 140,000 100,000 100,000 150,000 210,000 100,000

550,000 100,000 140,000 140,000 210,000

900,000 1,580,000 1,120,000

250,000 4,500 5,500 7,500 3,500 8,500 11,666,540 11,666,540

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Graphical Presentation of Cash Flow

Pre Launch Activities

P re L a u n c h A c tiv itie s
6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,380,200 1,000,000 0 B TL A c t ivit ie s N ews P a p e rs M a g a z in e s a d io / C a b le R TV 5 31,00 0 35 0,000 S e rie s 1 4,96 3,87 0

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Launch Activities

L a u n c h A c tiv itie s
9,000,000 7 ,7 1 9 ,7 9 0 8,000,000 7,000,000 6,000,000 5,000,000 S e rie s 1 4,000,000 3 ,0 0 0 ,0 0 02 ,1 0 0 ,2 0 0 2,000,000 5 2 1 ,0 0 0 5 2 5 ,0 0 0 1,000,000 0 B TL N e w s M a g a z in e R a d io / C a b le s A c t ivit ie s P a p e rs TV

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Post Launch Activities

P o s t L a u n c h A c tiv itie s
8 ,0 0 0 ,0 0 0 7 ,0 0 0 ,0 0 0 6 ,0 0 0 ,0 0 0 5 ,0 0 0 ,0 0 0 4 ,0 0 0 ,0 0 0 3 ,60 0 ,0 0 0 3 ,0 0 0 ,0 0 0 2 ,0 0 0 ,0 0 0 1 ,0 0 0 ,0 0 0 0 B TL A c tivitie s News P a p e rs M a g a z in e sR a d io /C a b le TV 5 6 4 ,0 0 0 5 18 ,0 0 0 S e rie s 1 6 ,98 4 ,5 4 0

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Over all Cash Flow (Month Wise)

C a s h F lo w C h a rt (M o n th W is e )
1 2,0 00,00 0 1 0,0 00,00 0 8 ,00 0,0 0 0 6 ,00 0,0 0 0 4 ,00 0,0 0 0 2 ,00 0,0 0 0 0 Jul-07 Nov-07 Jan-08 Oct-07 Aug-07 Sep-07 Dec-07 Mar-08 Feb-08 May-08 Jun-08 Apr-08 S e rie s 1

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Business Promotion Plan

In order to promote the business different promotional tools are adopted. For this purpose we plan to adopt the following tools. 1. Event Management 2. Personal Selling

Event Management
In event management we will do the following activities. 1. In pre launch activities we conduct a press conference which covers the introduction of our ISP and we invite the prominent journalist from all the News papers and hence we create a press release too in this context. 2. In launch activities an IT conference is presided by the Excel Net and where we invite leading men from the corporate sector along with education and IT minister. 3. In post launch activities we will arrange a musical concert at Alhamra Art Complex. This show will be opened for the students and people from every sphere of life. 4. In post launch activities we will arrange an IT conference again inviting the different ISPs in Pakistan along with industrialist.

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Personal Selling
We plan to make extensive personal selling. For this purpose we plan to hire a sales manager having the following qualities. 1. Motivation 2. Human relation skills 3. Higher than average energy level 4. Ambition 5. Human interaction 6. Persuasiveness 7. Behavior Flexibility 8. Intellectual ability 9. Personal impact

The Personal Selling Functions

Sales force perform the following function 1. Territory development Planning the sales force Effort 2. Developing the Sales Force 3. Directing the sales force 4. Evaluating the sales force performance 5. Sales Evaluation 6. Visit to different organization and persuade them to use the facilities provided by the Excel Net.

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Conclusion

As we know the tough competition among the ISPs in Pakistan, we have launched a competitive ISP named EXCEL NET, As a Marketer of Excel Net we were given 3 Crore Rupees in order to make the whole Marketing Plan of an year, we have covered our whole Plan by three stages i.e. Pre-Launch, Launch and Post-Launch activities. From our study which we have made on the different ISP in Pakistan we came to know the different strategies and Packages they have and in this response we make better strategies and packages which are at quite high position to grasp and snatch the market share from the jaws of market leaders. There is still a great potential in this field of internet but the main thing is that how to utilize the gap of excellence and access, so we are quite sure that we are able to give the users an ultimate high speed experience of internet connectivity with affordable price.

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References
Books
Strategic Brand Management by Keller Consumer Behavior by David Psychological Marketing by Michael Gershman The theory of Buying Behavior by John A Howard Youth Consumer by Sandra vandermerwe

Websites
www.pakistanadvertisement.com www.brandsynario.com www.google.com www.dogpile.com www.findarticles.com www.quickmba.com www.orkut.com

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