INTERNSHIP REPORT ON UFONE

SUPERVISED BY

SIR SHAHBAZ

PREPARED BY

SANA ULLAH

ROLL NUMBER 19045

MBA (MARKETING) 2009-11

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY

INTERNSHIP REPORT ON UFONE

Internship Report Submitted To the Department Of Management Sciences for the

Partial Fulfillment of the Requirements for the Degree of Master of Business

Administration

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY

COMMITTEE APPROVAL FOLIO

External Assessor

Mr.__________________________________Signature___________________

Supervisor

Mr.__________________________________Signature___________________

Chairman

Mr.__________________________________Signature___________________

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY

DEDICATION

My parents who shaped my life and made me what I am today, my teachers who have

been my source of inspiration, my siblings and friends who support and encourage me

in my endeavors, And to the greatest person (SAWW) who brightened the world with

the light of his wisdom and knowledge.

I

ACKNOWLEDGEMENT

Being as a student of Master in any discipline report writing is a very difficult job for

any student. But this becomes easy only on the basis of cooperation of the concerned

staff. I am very much thankful to the honorable manager, who really co-operated with

me in this regard.

I would also like to thank the other staff members of Ufone Franchise Mingora Swat

and especially the teachers of my department who have greatly helped me in building

my knowledge.

I owe very much too so many people whose help and support at different stages of my

work enabled me to write this report.

First of all I would like to thank Mr. Asad whose help made it possible for me to have

an internship period in Ufone Mingora Swat. I would also express my gratitude to my

friend, Mr. Irfan Ullah whose kind words are always guidelines for me. I feel proud to

also mention my father, Janab Ali Khan whose endless support and encouragement

enabled me to do my MBA.

Also I am thankful to our coordinator Sir Shahbaz who is not only a good teacher but

a good friend as well. His kind assistance made it possible to complete our MBA.

SANA ULLAH

II

Table of Contents

Dedication I

Acknowledgement II

Table of Contents III

Executive Summary VI

Chapter 1 Introduction of Study 01

1.1 Background of the Study 01

1.2 Purpose of Study 02

1.3 Scope of Work 02

1.4 Methodology of the Report 02

1.5 Scheme of the Report 02

Chapter 2 Overview of Ufone 05

2.1 History of Pakistan Telecommunication Authority 05

2.2 Pakistan Telecommunication Company Ltd 05

2.3 History of PTML Ufone 07

2.4 Mission Statement of Ufone 08

2.5 Overview of Ufone 09

2.6 Management Profile of Ufone 10

Chapter 3 Profiles of Different Departments 15

3.1 Human Resource Management 15

3.2 Technology Department 16

3.3 Finance Department 17

3.4 Audit Department 18

3.5 Marketing Department 19

3.5.1 Marketing Department 19

3.5.2 Marketing Strategies 20

3.5.2.1 Market Segmentation 20

3.5.2.2 Target Markets 21

III

3.5.2.3 Positioning 22

3.5.2.4 Differentiation 23

3.5.2.5 Customer Relationship 23

3.5.2.6 Total Market Orientation 24

3.5.2.7 Competitors 24

3.5.3 Market Share 26

3.5.4 Advertising Objectives 27

3.5.5 Ufone Brand 28

3.5.5.1 Prepaid 29

3.5.5.2 Post Pay 29

3.5.6 BlackBerry 29

3.5.7 Recharge Option 30

3.5.8 Detail of Prepaid Calls 31

3.5.9 International Calls 32

3.5.10 Conference Call 32

3.5.11 Collect Call Service 33

3.5.12 Call Block Service 33

3.6 Favorite Cellular Operator 2009 34

3.7 Best Brand Award in Telecom in 2009 for Ufone 35

Chapter 4 Performed Activities as an Intern 36

4.1 Visit of Different Offices 36

4.2 Visit of Mobile Shops 37

4.3 Dealing with Customers in Franchise 38

Chapter 5 Critical Analysis 39

5.1 Ufone SWOT Analysis 39

5.1.1 Strengths 39

5.1.2 Weaknesses 40

5.1.3 Opportunities 41

5.1.4 Threats 42

5.2 Competitive Advantages 43

5.3 Challenges 43

IV

5.4 Plans for Future 43

Chapter 6 Recommendations & Conclusion 45

6.1 Recommendations 45

6.2 Conclusion 47

Bibliography 48

V

EXECUTIVE SUMMARY

The development of skills to perform well in professional life has become a dire need of

every Business Graduate. The very purpose, an internship is to acquaint the business graduate

with experiential business practices.

As a compulsory requirement of Professional Degree in Business Administration, I selected

PTML Ufone for my internship, to fulfill my degree requirement.

Tele communication industry is playing a fundamental role in the success of our economy.

Pakistan Telecommunication Company Limited (PTCL) is the largest telecommunication

company in Pakistan. This company provides telephony services to the nation and still holds

the status of backbone for country's telecommunication. Despite the arrival of a dozen other

telecoms including telecom giants like Telenor, Mobilink, Warid, Zong etc Ufone is one of

the leading company in the market having best services. Being a marketing student mostly I

will focus on the marketing strategies of Ufone.

VI

VII

Chapter 1 INTRODUCTION OF STUDY

1.1 Background of the Study

It is a common practice at universities during the achievement of the masters and

bachelors program to achieve practical practice in different fields. Hazara University

Mansehra requires students to experience an eight weeks internship program. The

firm selection is based on student choice. The university requires an internship report

based on the theoretical and practical learning of the student. The concern of this

report is to study and analyze the performance of Ufone overall & specifically

Mingora.

There are many multinational telecommunication companies that are operating in

Pakistan & they are considered to be more competent and productive as they mobilize

foreign investment and provide better services. Ufone company is considered one of

the most famous and outstanding telecommunication Company as far its reputation

and progress is been concerned. Ufone was recognized to work cellular telephony.

The Ufone Company starts its process from Islamabad under the brand name Ufone

on January 29’2001. Since Etisalat took over PTCL in 2006, during the year as a

consequence of PTCL’s privatization, 26% of its shares were acquired by Emirates

Telecommunication Corporation (Etisalat). Being part of PTCL, the management of

Ufone has also been handed over to Etisalat.

1

1.2 Purpose of Study

The purpose of the report has been to review and analyze the functions performed by

Ufone. The report also explores the strengths and weaknesses of the Ufone and also

gives recommendation where any improvement can be possible.

1.3 Scope of Work

This report is anxious with the performance of the Ufone. It enlightens the Marketing

functions of Ufone.

1.4 Methodology of the Report

The methodology for the collection of information and data was based on the two

primary modes of data.

Sources of Primary data:

Personal Observation.

Interviews of Personnel.

Sources of Secondary data:

Previous internship Reports.

Brochures.

Books.

Web sites.

1.5 Scheme of the Report

The report is arranged in the following sequence.

2

Section-I

This section has one chapter.

Chapter 1

This is a preliminary chapter which describes the background, purpose, scope,

methodology and method of the report.

Section-II

This section is comprised of four chapters.

Chapter 2:

This is the brief history of telecommunication industry in Pakistan. It also tells about

the history of Ufone, its mission statement and role in Pakistan. This chapter goes in

detail study about the Overview of Ufone and Management Profile of Ufone.

Chapter 3:

This chapter is the lengthiest chapter of the report. It precisely tells about the several

departments working at Ufone and their functions. The departments are Human

Resource Department, Technology Department, Audit Department, Finance

Department and Marketing Department.

Chapter 4:

This chapter is about the activities those which I perform darning my internship in

Ufone franchise.

3

Section-III

This section also has one chapter and it is about the analysis of Ufone.

Chapter 5:

This chapter makes the critical analysis of Ufone. The market analysis of Ufone is

based on national performance of Ufone, followed by a SWOT analysis of the Ufone.

Section-IV

This section contains one chapter.

Chapter 6:

This is the recommendations and conclusion based on critical analysis of the

organization. And this chapter is about the implementation plan that has been devised

for Ufone on the basis of the room of improvements.

4

Chapter 2 OVERVIEW OF UFONE

2.1 History of Pakistan Telecommunication Authority

The Pakistan Telecommunication Ordinance 1994 recognized the primary regulatory

structure for the telecommunication industry including the establishment of an

authority.

Thereafter, Telecommunication (Re-Organization) Act no XVII was promulgated in

1996 that aimed to reorganize the telecom sector of Pakistan. Under Telecom

Reorganization Act 1996, Pakistan Telecommunication Authority (PTA) was

established to regulate the establishment, operation and maintenance of

telecommunication systems, and the provision of telecom services.

The PTA has its headquarters at Islamabad and zonal offices located at Karachi,

Lahore, Peshawar, Quetta, Rawalpindi and Muzaffarabad.

2.2 Pakistan Telecommunication Company Ltd

From the beginnings of Posts & Telegraph Department in 1947 and establishment of

Pakistan Telephone & Telegraph Department in 1962, PTCL has been a major player

in telecommunication in Pakistan. Despite having established a network of enormous

size, PTCL workings and policies have attracted regular criticism from other smaller

operators and the civil society of Pakistan. Pakistan Telecommunication Corporation

(PTC) took over operations and functions from Pakistan Telephone & Telegraph

Department under Pakistan Telecommunication Corporation Act 1991.

5

This coincide with the Government's competitive competitive policy, encourage

private sector participation and resulting in award of licenses for cellular, card-

operated pay-phones, paging and, lately, data communication service. Pursuing a

progressive policy, the Government in 1991, announced its plans to privatize PTC,

and in 1994 issued six million vouchers exchangeable into 600 million shares of the

would-be PTCL in two separate placements. The shares value of each share was Rs

10 per share. And in mid 1996 these vouchers were converted into PTCL shares.

In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis

for PTCL monopoly over basic telephony in the country. It also paved the way for the

establishment of an independent regulatory regime. The provisions of the Ordinance

were lent permanence in October 1996 through Pakistan Telecommunication

(Reorganization) Act. The same year, Pakistan Telecommunication Company Limited

was formed and listed on all stock exchanges of Pakistan. PTCL started its mobile and

data service in 2001 by the name of Paknet & Ufone respectively but none of them

bring it to the top list in market competition. But lately the Ufone increase the market

share in cellular sector. The Paknet brand effectively dissolved over the period of

time. Recent DSL service started by PTCL reflects this by the introduction of new

brand name and operation of the service being directly supervised by PTCL instead of

Paknet.

As the monopolies of telecommunication in market comes to end very soon , services

and infrastructure providers are set to face even bigger challenges. The post-

monopoly era came with Pakistan’s Liberalization in Telecommunication in January

2003. On the Government level, a comprehensive liberalization policy for telecom

6

sector is in the offing. Pakistan Telecommunication Company Limited (PTCL) is the

largest telecommunication company of Pakistan. PTCL provide telephone service to

whole nation and working as a backbone in telecommunication infrastructure despite

arrival of a dozen other telcos including telecom giants like Telenor and China

Mobile. The PTCL has round about 2000 telephone exchanges which provide a large

fixed line network across the country. PTCL also provide GSM, CDMA & internet

which make it a gigantic organization. The 26% of PTCL shares were sold by the

Government of Pakistan to Etisalat in 2006.

2.3 History of PTML Ufone

PTML of PTCL (Pakistan Telecom Company Limited), the largest operator in

Pakistan. PTML was establishing to operate cellular telephony. The company starts

working in January 29’ 2001.Since Etisalat took over PTCL in 2006, during the year

as a consequence of PTCL’s privatization, 26% of its shares were acquired by

Emirates Telecommunication Corporation (Etisalat). As Ufone is a part of PTCL

therefore the management of Ufone was also handed over to Etisalat.

Since its inception, The focus of Ufone is the people of Pakistan , empowering them

with the most relevant communication modes and services that allow them to do a lot

more than just talk, at a price that suits them the most. Along with the claim of lowest

call rates, clear sound and best network, Ufone offers its customers simplified tariffs

with no hidden charges. With a strong and exclusively amusing communication

direction that has now become Ufone’s signature across all advertising media, Ufone

gives its customers many reasons to smile.

7

This customer focus and best offering has allowed Ufone to build a subscriber base of

over 20 million in less than a decade. Ufone has network coverage in 10,000 locations

and across all major highways of Pakistan. Ufone currently caters for International

Roaming to more than 260 live operators in more than 150 countries. Ufone also

offers Pakistan’s largest GPRS & BlackBerry Roaming coverage available with more

than 150 Live Operators across 105 countries. More recently, Ufone has become a

focused and intensive leader in VAS, constantly introducing innovative services,

which have been the first of their kind in the Pakistani cellular industry.

As the world of telecommunications advances, Ufone promises its customers to stay

ahead, developing and evolving, to go beyond their expectations, because at Ufone,

it’s all about U. Ufone collected millions of smiles from all over Pakistan. This proves

that Pakistan is smiling and will continue to smile, and this is our mission. Just as we

have done in the past 9 years, we will continue to spread smiles among our customers

and employees with our brilliant services, network, packages, offers and policies…

because today, tomorrow and forever, it’s all about U!

2.4 Mission Statement of Ufone

“To be the best Cellular option for U”

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2.5 Overview of Ufone

Ufone one of the foremost telecommunication company in Pakistan. As mobile users

in the country have reached over 28 million at very rapid pace, Ufone has maintain

itself as the 2nd largest cellular operator in Pakistan with a subscriber base of around

6.5 million and market share of nearly 25%.Ufone has seen a subscriber growth rate

of over 200% in the last year, and the start of 2005 Ufone added nearly 5 million

subscriber onto its network .A remarkable achievement indeed, especially considering

the fact those two new international players also entered to market in

2005.Subsequently the growth in subscriber based caused a healthy trend in revenue

which have doubled.

Ufone’s operational performance has been very hopeful. Despite the stiff competition

in Pakistan telecom market which has led to decrease of prices to bare minimum

level, due to its violent policies and exercise strict control over expenses the company

manage to improve its revenue and after-tax profit by 37% & 54% respectively, as

compare to last year. After Mobilink, Ufone is the second cellular provider company

that is based on GSM technology. Basically they are using GSM 900 technology with

version 2001. Apart from this they are very strong in technological developments

especially they have a well-establish research and development departments that is

working on new technology. Likely they are the first company in Pakistan that is

offering GPRS facility to their customers.

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2.6 Management Profile of Ufone

In this part of the report I will talk about the flow of command that exists in Ufone. In

Ufone the chain of command is very bend, in general the whole setup is centralized,

all the matters are to be reported to the main company and all the policies and targets

are accepted at the higher level. But at the department level the arrangement is

decentralized.

President and CEO Mr. Abdul Aziz

Mr. Abdul Aziz has rejoined Ufone as President and CEO in December 2007. A

fellow Chartered Accountant, he has over fourteen years of experience in the Telecom

Industry both local and International including Europe, Asia and Africa. During his

job he has held a variety of higher-ranking level positions with companies including

Warid Telecom, Millicom International, S.A., Ufone GSM and Celtel International.

Mr. Aziz, being first CFO/Cosec was a key member of the Core Team which

launched Ufone in 2001.

Chief Financial Officer Mr. Mohammad Nadeem Khan

A Fellow Chartered Accountant Mr. Nadeem Khan has approximately 12 years skill

in the telecommunication industry both locally and internationally. He holds a

10

diversified selection as international auditor at MIC, Luxemburg and served in the

ability of Financial Controller in Millicom Cambodia before joining Ufone as Chief

Financial officer (CFO) in 2003.

Chief Officer Government & Regulatory Affairs Mr. Naveed Khalid Butt

With over 15 years of commercial & technical practice in the telecommunication

industry, Naveed Butt has worked on senior management positions with a variety of

cellular operators in Pakistan. A wangle by profession, Naveed has done his B.E. in

Electronics from U.E.T, Lahore. Presently he is heading the Customer Operations and

Regulatory Affairs departments at Ufone since June 2004.

Chief Officer Customer Services Operations Mr. Ahmad Kamal

Ahmad Kamal has rejoined Ufone as the Chief Officer Customer Services Operations.

He has broad Customer Services’ knowledge of 17 years working with leading

Telecom Companies of the country. Previous to this role, Ahmad Kamal was General

Manager Customer Services at Warid Telecom. He was title the Customer Operations

at Ufone during the open phase. He has also served with Dvcom Ltd where he was

responsible for Customer Operations & Human Resources. He has also served at a

variety of positions of growing responsibility with Mobilink, where his last task was

11

looking after customer services at the national level. Ahmed Kamal has a Masters

degree in Business Administration.

Chief Technical Officer Mr. Jafar Khalid

Mr. Jafar Khalid is title the Technical Department. He has over 12 years of diversified

skill in the telecom sector. He has a proven background in organization large-scale

cellular projects, leading network planning, operations and execution initiatives,

establishing and improving organizational processes, and aligning technical activities

with business strategies. Before his scheduled time as CTO, he served as the Project

Director & GM Network Planning in Ufone, and has held various senior technical

management positions with his last employer Mobilink.

Chief Information Officer Mr. Faisal Khaliq

Mr. Faisal Khaliq is the Chief Information Officer of Ufone since June 2008. Faisal

has a Masters Degree in Computer Sciences from the University of Texas at Austin.

He is also a Project Management Professional (PMP) with 12 years of practice in the

IT industry. Prior to joining Ufone, Faisal was the Managing Director for Teradatas

Global Consulting Center in Pakistan which is one of the largest offshore operations

its kind for a multinational in Pakistan.

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Chief Officer (Sales & Distribution) Mr.Younas Iqbal Sheikh

Mr.Younas Iqbal Sheikh heads Sales & Distribution at Ufone (PTML) and has a rich

working skill of 20 years most of which is in Telecom Sector helping companies like

Siemens, Insta Phone, World call, Mobilink , Wi-tribe (Qtel) & Ufone (PTML). In his

career he has played a key role in the areas of Sales & Distribution, Customer

Services, and Operations and marketing, during his profession he was given difficult

responsibilities, for instance heading 2 countries with a team of thousands and

portfolio of Billions. He performed major successful overhauling with self-initiatives

for Process-Re-engineering in the areas of; Sales, Channel Development, Customer

Services, Business Operations and was a key contributor in rising complete business

begin plan for Wi-Max services business in Pakistan for Wi-tribe Pakistan (Qtel).

General Manager Marketing Mr. Akbar Khan

Akbar Khan heads the Marketing Division at Ufone. He has been part of the Pakistan

telecom industry in key roles since 1998. Before joining Ufone last year, Akbar was

Head of Brands at Mobilink and before that he was Head of Marketing at Paktel

Limited. Akbar has done his MBA degree from IBA Karachi.

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General Manager Corporate Strategic Planning & PMO Mr. Moqeem ul

Haque

Moqeem ul Haque is associate member of the Institute of Chartered accountants of

Pakistan. He brings in thirteen years of extensive skill of working in the cellular

industry. He was among one of the pioneers in Warid telecom. Moqeem has also

served in Mobilink. Mr. Moqeem heads the business strategic planning job as well as

supervises the special projects of the organization.

General Manager Administration Mr. Mohammad Zahid Qureshi

Mr. Mohammad Zahid Qureshi has more than 12 year practice in telecom industry.

Mr. Qureshi has been connected with Paktel and later Ufone for fairly sometimes. He

participated aggressively in successful start of Ufone services in Lahore & Faisalabad.

His center competencies and the areas he holds know-how in include Sales, Services

and Administration. He has played an active role in starting of product and system

development for Ufone. Mr. Qureshi has done MBA from Punjab University, Lahore.

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Chapter 3 PROFILES OF DIFFERENT DEPARTMENTS

Every organization can be divided into certain departments and every department’s

acts various types of jobs and required specialization skill to perform the important

job. It boost the power of workers and make job easier departmentalization in an

organization could be judged through various aspects. Ufone is comprised of several

departments. The division is made on the based of functions and job they perform.

Hence it can be conclude that Ufone has adapted to the policy of practical

departmentalization.

In this chapter I will discuss the different departments and their functions how ever

my main focus will be on the marketing department because my specialization is in

marketing.

Human Resource Department

Technology Department

Finance Department

Audit Department

Marketing Department

3.1 Human Resource Management

Human Resource Management has always been the key factor in an organization’s

achievements. The employees of an organization forever decide the way of success

for the business. The primary anxiety of HRM has been on the subject to mould the

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personality of employees in a method which formulates the individual goal of the staff

into the organizational objective.

Human Resource Department at Ufone

The Ufone have the following three sub units of HR Department:

Training and Development

HR Operations

Outsource Operations

3.2 Technology Department

After Mobilink Ufone place the second leading service company based on modern

technology Ufone is very strong on technology it is the first company of Pakistan

which is offering GPRS facility to its customers. The option of modern technology is

important in this industry because it can provide the operators with product

differentiation in a crowded market.

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HR Department

Training&

Development

Outsource Operation

HR Operations

For any operator, in selecting GSM technology, there are two routes to follow. Either

start as a technology leader with large investments in GSM / GPRS / EDGE

technology or start a phased roll out and adopt a “build as they come” approach, using

infrastructure sharing and roaming arrangements to provide coverage to its users. The

first approach allows the operator to charge a price premium and rollout services on

top of its higher speed network. The second approach is accompanied with a price

discount strategy capturing the low-end market segment in the initial phase and

moving on later to the higher border customer.

3.3 Finance Department

The cellular phone sector that it has witnessed tremendously harsh competition among

its market players particularly in the race of subscribers’ addition, calls and SMS

tariffs and value added services for last two years. Besides competition, global credit

chomp, reduction of rupee against dollar, country’s economic slow down and high

taxation on telephony services have altogether shrunk revenues and dragged down

almost all cellular phone in couple of years.

However, Ufone has shown positive growth in this period with the support of its

parent’s company. Telecom analysts provided reasons behind Ufone’s steadiness in

hostility the terrible situations, saying that Ufone’s packages that include PTCL

landline and wireless calling services coupled with the high traffic of daily SMS

bundles have increased its income through its customers. Free minute offers and

introduction of Ramadan packages jacked up the revenues of the company in Jul-Sep

2009. Ufone continued high earning growth in 2010-11 with net profit of Rs 506

million.

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Ufone, the wholly owned subsidiary of PTCL, has witnessed an overall revenue

increase to 9.214 billion in the closing quarter of 2010-11 as compared to Rs 8.708

billion revenue earned in the same period of the last year. Despite the powerful

competition among the cellular phone operators of the country, the PTCL subsidiary

has continued to earn profit as against other foreign cellular phone companies facing

harsh financial constraints in the last couple of years.

3.4 Audit Department

In business auditor is essential tool especially when reporting financial report. In

Ufone the audit is carried out for different departments separately, in the marketing

department the audit team of Ufone identify the market gap and the reported

deficiencies are regularly sent on daily basis to the head office. The audit team

investigates the franchises activities. The following activities are monitored by the

audit team, market availability of Scratch Cards, u load, Sims.

Merchandising of Ufone e.g. Poster, Banners etc. It also includes booth activity at

different market places for the customer consciousness. And also check the universal

data for the purpose of getting the true and correct in formation of retailers. Surprise

visit of market check the inventory of Retailers. We establish strong relationship with

the dealers and Retailers. Managing the sales team and motivating them and hire them

know direct Marketing and sales. Meeting with the Ufone franchises for setting of

targets for PPC and U Load sale for Business development; Capturing Market share

by tale marketing team.

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3.5 Marketing Department

The main concept of marketing is to identify the need of market in the desire line of

business and according to the need identified in the market satisfying it in the best

possible manner. The major activities that are carried out in marketing are generally

known as the 4Ps of marketing that are planning of Product according to the market

need, planning of Price so that the company should meet its costs & survive itself in

the market, Place i.e. identifying appropriate market place for the sales of the product

offered, Promotion giving awareness to the market about the product offered by the

company. There are four marketing departments of Ufone they are:

Brand Marketing

Value Added Service(VAS)

International Roaming

Marketing Operations

3.5.1 Marketing Department

The marketing department of Ufone controls all activities which related to Ufone new

packages. Ufone increase its brand visibility and image through its vibrant marketing

strategies.

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Marketing

BrandMarketing

Marketing Operations

International Roaming

VAS

The different marketing strategies that are followed by Ufone are presented in this

section, in this section I will also discuss the market position that Ufone in the current

market.

3.5.2 Marketing Strategies

The foremost job of the marketing department is to bring new customers to the

organization. The marketing strategies devised by Ufone are discussed below.

3.5.2.1 Market Segmentation

Market segmentation is a process through which the market is divided into several

different segments to be arranged. The cellular market is a very dynamic market and

according to the dissimilarity marketing strategies are devised from time to time.

Ufone and other cellular network divide the market in four portions; Age, Gender,

Occupation, and Economy.

Economy Upper Class, Middle Class, Socio Economic Class, Lower

Class

For these different segments Ufone has interesting strategies & compare to other

cellular companies are the best one. For economy class Ufone offer post paid

packages which are for the business and corporate class customers. The customers of

this segment are very busy people and do not find enough time to recharge their

mobile from time to time therefore they are owed after each month. In this product

Ufone offer very low rates because the usage of this class is very high. For the middle

class Ufone has Uwon package, public demand, tension free etc these entire packages

are prepaid and economical for this class to afford. For the lower class Ufone has the

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facility of Uload which are available in each and every corner of the country. In this

facility the customers can recharge from Rs 10 to max limit.

Age Teenagers, Youngsters, Middle Age, Aged People

In this segment, for teenagers and youngsters there are bundle of low rate sms

packages because they mostly communicate through sms. Customers of this segment

favor Ufone because other networks sms rates are very high.

Gender Male & Female

For this segment Ufone has Pre Pay Life, Ganta, and Super Ganta package. The

features of this package are that customer can enjoy at lowest rate to Ufone, PTCL

and VPTCL at low per hour rate. This package is designed for friends, couples,

relatives who talk for a long period on regular basis.

Occupation Corporate Class, Business Class,

Working Class

For the business class customers Ufone offer Blackberry which has internet facility in

the mobile phone. For the corporate class the rate decreases depending on the increase

of usage rate. In this segment Ufone offer extra free minutes to Ufone for those

customers who use Ufone most regularly.

3.5.2.2 Target Markets

The main focal point of all mobile phones companies are the young people. And

therefore the main focus of Ufone is the young generation. The Ufone targets the

youth of Pakistan.

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Top Reason for Customer to Remain with Ufone

6.15%

27.60%

0.79%1.10%

31.07%

2.37%3.47%

12.62%14.83%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Low On-Net CallRates

Low Of-Net CallRates

Hourly Packages(Night)

Hourly Packages(Day)

SMS Packages

GPRS,EDGERates

GPRS,EDGESpeed

Coverage &Netw ork Quality

Best CustomerSupport

Target Marketing Strategy

The target market of Ufone is always the youngsters. Ufone phone always bring such

kind of packages that meet the needs of the youngsters. There is no doubt that Ufone

also launched packages for working people, Ladies, Aged once and Business class.

3.5.2.3 Positioning

The companies create image in consumers mind. They create image in consumers

mind sensitively, functionally or on the basis of product quality or through brand

quality.

Ufone’s previous Positioning Statement: “Everybody Loves to Ufone Prepay “

Ufone’s new Positioning Statement: “Ufone tum hi toh ho!” Or “It’s All about U”

Ufone Positioning Strategy

Since from the beginning, Ufone has position its brand on the basis of providing the

lowest call rats. It makes belief them that Ufone can satisfied their needs. The brand

name of Ufone is itself a positioning statement.

3.5.2.4 Differentiation

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In these days of enormous competition the marketers distinguish their service from

other companies the customers are now only care about the price. And when they are

not satisfied they change the brand. Thus leaving a customer displeased and not

meeting there demand is out of question fore the marketers.

Differentiation Strategy

Ufone always stress on customers pleasure therefore Ufone fruitfully distinguish itself

in term of technology, service, quality and price.

3.5.2.5 Customer Relationship

In Pakistan 28 million people use mobile phone and the customers of Ufone are 7

million. The Ufone maintaining good relation with there customers through ‘Call

Center’ and customer service center. For customer relationship they have special

customer operation departments.

Customer Relationship Strategy

The Ufone create strong connection with there customers to increase there loyalty and

life time values. Therefore Ufone trains its permanent employees and internees that

how to deal with their customers. The Ufone also give reward to their long-term

postpaid customers.

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3.5.2.6 Total Market Orientation

The total market direction is about to sympathetic and meeting customers expressed

and dormant needs.

Strategy

Ufone is always considered as a low call rates and quality service. It also provides

new packages and set up new brand to meet customer’s needs. For example for the

women of our society its packages is 5 ka 15. They plane for short calls and chats.

3.5.2.7 Competitors

This is hard core competition in Pakistan among cellular companies. Mobilink is

market leader and Ufone is market challenger in the market. Newly introduce

ZONGE, Telenor, and Warid are also considered as strong competitors. The following

are Ufone direct competitors:-

Mobilink

The Mobilink Pakistan cellular company has 10 million subscribers. The Mobilink

Company is the largest cellular company of Pakistan.

Telenor

One of the stronger competitors of Ufone after Mobilink is Telenor. The sound quality

of Telenor is outstanding and also the GPRS of Telenor is faster than Ufone.

Warid

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Warid start working in Pakistan in 2005. The Warid Company is operated by Abu

Dhabi group by Sheik Nahayan Mubarak Al Nahayan. It is also contestant of Ufone.

Zong

ZONG is the first International brand of China Mobile being launched in Pakistan. It

is meant to authorize and release the people of Pakistan in every corner and nook of

the country. It will become a part of their hearts, their minds and bring about a change

in their lives that every one desired but few thought would be possible.

Ufone also considers the following as its competitors:

PTCL WIRELESS

Wateen Telecom

World Call

Competitive Strategy

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The competitive strategies of Ufone are customer differentiation and intimacy. Ufone

aims are passing Mobilink in its competitive race.

Comparision of Telecom Companies using BCG Matrix Approach:

Star

Question Mark

Cash Cows

Dogs

High Low

3.5.3 Market Share

In this highly competitive market the market share of a company is considered as a

strong parameter. Mobilink was the market leader for a long time both in term of

revenue and subscriber for first time. But when new competitors come to market like

Zong start work in the market it change the market structure but still Mobilink holds

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Relative Market Share

?

G r o w t h

R a t e

High

Low

maximum shares in market. Now customers have enhanced and more choice to select

a brand. The following figure shows the companies share in market in term of

subscribers during 2008-009 & 2009-010. Mobilink lost its 15% shares during this

year. While others companies show that they increase their shares. Telenor is the

second highest share holder in market with 22.2% shares. Ufone has 21% & Warid

19% shares. Others companies except Zong & Ufone lose their shares and these two

increases there shares from 1% to 4% and 15% to 19% respectively.

3.5.4 Advertising Objectives

The advertising objectives of Ufone are to inform Customers about Ufone new and

avail services induce people about their services.

Advertising Budget

The advertising budget of Ufone is higher in electronic media and other media but

these expenditures are considered as investment. These are full of risk also a single

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Mobilink 36.39%

2008_2009

Ufone 20.56%

Warid 17.6 %

Telenor 20.59%

Insta phone0.36%

Zong 4.49%

0.04%

Warid 18.96%

Mobilink,

30.88%

Telenor, 22.15%

Ufone 21.20%

Zong, 6.77%

Insta phone,

Mobilink Telenor Ufone Zong Insta phone Warid

2009_2010

advertisement of Ufone on TV channels played about 15-20 times every day. On

advertisements and sales promotion Ufone spend 20% of its total profit.

Strategies: Ufone adopt various types of strategies for publicity massage as

well as advertising media. These strategies are :-

Advertising Message:

Message Content: The first and initial step for advertising a message is the message

humor and after this it is steadily shifted to the customers in order to win the heart of

the customers.

Message Format: The methodology of message formatting is very good-looking and

colorful. The Ufone use Orange & Green colors which are very beautiful and

gorgeous.

Message Source: The main sources Ufone use in their advertisement is celebrities.

Ufone advertise their through famous celebrities like Faisal Qureshi, Meera, Jia Ali,

Vena Malik etc and other young models. These advertisements have also sexually

track the people due to these models. The Ufone also hire comedian stars for there

advertisement. Hiring these people is economical and the people like these stars.

Endorsers in group are also hired bye Ufone.

3.5.5 Ufone Brand

In order to develop gradually Ufone customers they improve and make livelier. The

image of Ufone is due to changing in their visual uniqueness. The value of Ufone is to

connect and provide service to the people of all ages. It does not matter for Ufone that

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who are you, where you are, what you want and say, how you feel because Ufone is

all about you and you are the main focus of Ufone.

3.5.5.1 Prepaid

Ufone welcome you in Ufone prepaid community because with Ufone you can call

and send SMS with low rates. The Ufone know that people want to touch with their

friends and family that is why Ufone provide low call rates. The Ufone provide

scratch cards for prepaid customers which ensemble to their budget and can recharge

easily.

Prepaid IR

The world most reasonably priced and economical tariff offering now in various

important destinations.

3.5.5.2 Post Pay

Ufone welcome you in endless possibilities post pay connection which connects you

to attain the unexpected. Ufone post pay connection is for those people who want and

expect more from life. The aim of Ufone is to provide most superior mobile phone

service, quality network, and best customer service for their customers. One can enjoy

special discounts, GPRS, Umail and internet roaming from Ufone.

3.5.6 BlackBerry

BlackBerry is solution for connecting mobile professional to customers with colleges

while they are on move. The BlackBerry can be coordinated with one’s laptop, office

computer and can also be linked with web mailbox. Blackberry is advance technology

device which is simple and easy to use like:

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You can make and receive calls with BlackBerry and you can also send mail or text

messages from BlackBerry.

3.5.7 Recharge Option

You can easily recharge your prepaid easily. You can recharge your prepaid with

scratch cards, U Top up, MTM or SMS and electronic vouchers.

U Load

Through U load you can easily recharge prepaid. U load is alternative for those

customers where scratch cards are not available.

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Scratch Card

Through scratch cards you can also recharge you’re prepaid easily. It is the easier and

simply way to recharge. The denominations of scratch cards are;

3.5.8 Detail of Prepaid Calls

For the first time Ufone initiate print option of prepaid call details. The detail of

prepaid calls creates customer trust on Ufone. In calls detail you can ensure your

outgoing calls. For availing this service Rs.50 is charged from balance. You can

receive detail of calls from service center or to contact with call center of Ufone.

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Rs.100 6 months

Rs.250 6 months

Rs.500 1 year

Rs.1000 1 year

3.5.9 International Calls

Ufone offer more eagerly payable rates of international calls as compared to local

calls. Ufone brings the most willing payable call rates now call to your friends in UK,

USA and Canada from 12am to 8pm at lowest call rates i-e 45 paisa’s per 30 second.

Prepaid Roaming

Ufone Prepaid offers international roaming at very low price in market as compare to

others. International roaming not lavishness for prepaid and there is no need to deposit

security for international roaming. Ufone now offer it on very low cost. You can get

this service by calling Ufone call center. Ufone also offer for international MMS.

Now both prepaid and postpaid customers can send international MMS.

3.5.10 Conference Call

Now with Ufone conference call you can talk with up to six different peoples at a

time. To activate this service simply send sms to SUB to6789. Conference call is used

to discus business issues.

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Pricing

The activation charges of this service for one time are Rs.300. Both postpaid and

prepaid can use this service.

3.5.11 Collect Call Service

In Pakistan Ufone for the first time initiate collect call service. You can remain

connected even if have no balance. Collect call provide you expediency calling if your

balance does not allow you to call. You can make a collect call by dialing 11 before

Ufone number.

3.5.12 Call Block Service

Now you can block all unwanted calls with Ufone call block service. Ufone was the

first in Pakistan which introduce call block service.

Call Block Service for Post pay:

For first time in Pakistan the post pay users can also use the call block service. The

post pay users can also block unwanted SMS. You can activate this service by

sending SMS “SUB” to 420 once you save the sitting of this service on your mobile

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then you can block SMS & unwanted calls. You can deactivate this service by

sending SMS “UNSUB”.

3.6 Favorite Cellular Operator 2009

In Pakistan 2009 was very competitive for cellular companies. New products, ads,

packages, offers, social media etc were use in competition by the companies. But

among them Ufone was the preferred cellular company.

Favorite Cellular Operator – 2009

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0%

5%

10%

15%

20%

25%

30%

Warid Telenor Ufone Mobilink Zong

Warid

Telenor

Ufone

Mobilink

Zong

3.7 Best Brand Award in Telecom in 2009 for Ufone

Ufone is strongly focusing on services of high qualities, and this is the Ufone

standard. Ufone is considering one of the best network in Pakistan, as compare to

other network its pricing strategies are such which are affordable for any class of

users. Recently Ufone lunch Tension Free Package. In this package Ufone offer Rs

1.2 per mint Ufone to Ufone and Ufone to other network. From time to time new

strategies are revised keeping in view the market conditions.

　

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Chapter 4 PERFORMED ACTIVITIES AS AN INTERN

During my internship in Ufone Franchise Mingora Swat I perform different types

of activities. While performing my internship in Ufone franchise I worked inside

the Ufone franchise and also visit many different places with my senior colleges.

We visit different private and government offices and there we introduce and

market our products.

I also work inside the franchise and there our work was to guide the customers and

tell them about our products and new packages. The main duties which I

performed darning my internship in Ufone franchise are discus below in detail.

1 Visit of different offices

2 Visit of Mobile shops

3 Dealing in franchise with customers

4.1 Visit of Different Offices

During visit of these different Government and private offices we meet the people

and tell them about Ufone different packages and convince them to use Ufone.

And we claim that the aim of Ufone is to provide most superior mobile phone

service quality. The main purpose of targeting professionals is to market Ufone

Post pay. Because Ufone post pay is very convenient for such kind of people.

Through Ufone the businessmen can also use collect call service by which they can

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easily discuss business matters with many people at a time. They can also recharge

it very easily by scratch cards and also through ATM.

The main points of Ufone Post pay that we tell to the customers or businessmen

and convince them to buy Ufone are the following. Special discounts: on a range of

talk plans you can choose from:

Virtual Private Network (VPN): Your own private network within the

Ufone network.

GPRS: Internet Access on your GPRS enabled phone & mobile office so

you can be in touch with business while you are out and about.

Umail: To enjoy wireless email products.

International Roaming: in countless destinations, keeping you connected

worldwide.

Exclusive Customer Care: with personal service to help set up your phone

to suit your needs.

Ufone Post pay with its technological edge, great value for money and

unmatched quality is your perfect companion on the road to success.

4.2 Visit of Mobile Shops

Darning the mobile shops visit we visit different shops in the market. There we

introduce our products i-e Ufone post paid pre paid and others packages which

Ufone provide to their customers. We give full detail of Ufone package that it offer

to Ufone user like Ufone prepaid offer the following packages to pre paid user

Ufone welcome you in Ufone prepaid community because with Ufone you can call

and send SMS with low rates. The Ufone know that people want to touch with

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their friends and family that is why Ufone provide low call rates. The Ufone

provide scratch cards for prepaid customers which ensemble to their budget and

can recharge easily. And Ufone post paid offer these packages to their users Ufone

welcome you in endless possibilities post pay connection which connects you to

attain the unexpected. Ufone post pay connection is for those people who want and

expect more from life. The aim of Ufone is to provide most superior mobile phone

service, quality network, and best customer service for their customers. One can

enjoy special discounts, GPRS, Umail and internet roaming from Ufone.

4.3 Dealing with Customers in Franchise

I also deal with customers in franchise and guide them and also tell them about

different packages of Ufone. And give them the reasons that why one must switch

to Ufone. We tell them that Ufone provide vide range network give you clear

sound during call and also provide you quick connection while you are calling.

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Chapter 5 CRITICAL ANALYSIS

5.1 Ufone SWOT Analysis

The SWOT analysis is the company overall evaluation a company’s strengths,

weaknesses, opportunities, and threats.

　

5.1.1 Strengths

Strengths are the internal resources, capability, and positive factors which is necessary

for company to achieve its goals. The following are the strengths of Ufone:

The biggest strengths of Ufone is its separation from others

companies. The things that separate Ufone from others companies and

competitors is it low calls rates.

The value added services that is offered by Ufone is better than

others companies i-e Smart code, Call Block Service, Collect call etc.

The ATL (Above the Line) activities of Ufone are more good-

looking and promising. The internal and external management of Ufone is

great.

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The Biggest strength of Ufone is its status through out the country,

the people of Pakistan believe Ufone as it national company & mostly people

wish to use Ufone.

Ufone is measured to be the second largest telecom co in Pakistan

therefore it is enjoying economy of scale.

Ufone is a government company and therefore it enjoys a lot of

concessions, which the private cellular companies cannot enjoy.

GSM technology: It has well-built brand exceptionality. It has

successfully projected itself as a company meant to serve up its people.

Ufone has Wide network. Ufone has a wide-ranging promotional

strategy.

Ufone has a joined network of franchises.

The grate substitute for prepaid customers is Electronic Voucher

Distribution.

This service is great because it make sure that the credit want for

Ufone connection will always be easily reached on-demand.

　

5.1.2 Weaknesses

40

Weaknesses contain internal limitations and negative situational factors that may

obstruct with the company’s performance. Ufone has the following weakness:

Ufone has less professionalism within the managerial members.

Ufone still has chance for the betterment of its network exposure in

assessment to The Market Giant “MOBILINK”.

The billing system of Ufone for prepaid customers is not good which generate

negative image in customers mind.

Ufone being a government organization has comparatively less human and

monetary capital accessible as compared to its leading competitors that are

subsidiaries of large multinationals such as Mobilink and Telenor.

Customer services provided by Ufone are not according to the necessities of

their customers.

5.1.3 Opportunities

Opportunities are positive factors or trends in the external environment that the

company may be able to develop to its benefit. The followings are the opportunities

for Ufone:

Ufone’s major opportunity two-faced in front near future is the phase of

adaptation of their GSM technology & 3G (satellite based) technology.

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Ufone has the opportunity of raising its customer hold up due to growing

propensity of using mobile phones.

By improving their network Ufone can augment its customers.

The Ufone has also the opportunity that it is lead the way in southern Punjab

where it can encourage itself and become market leader on the basis of this

very information.

The Ufone can also improve its network encourage in order to make additional

trustworthy customers.

They should give jobs to students by calling different universities and other

organizations. They can position their job advertisements on university

bulletin boards and also ask the fresh graduates for walk in interviews.

5.1.4 Threats

Threats are critical external factors or trends that may present challenges to

performance. Ufone is parallel/about to face the following intimidation:

Ufone’s biggest opportunity is its biggest danger as well. The phase of its

adaptation of GSM technology to 3G technology can be a risk for it if not

accepted correctly.

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The boosting customer base of Warid and Zong is also a big warning for

Ufone.

The declining market rate and unpredictability of Pakistan is a big danger for

all businesses in Pakistan as well as Ufone.

5.2 Competitive Advantages

It’s a benefit over competitors gained by present consumers’ superior value than

competitor’s offer. Ufone strategizes to expand more and more competitive

advantages. It also uses this competitive compensation well enough for its promotion.

Presently Ufone is enjoying the following competitive advantages:-

Lowest call rates

Value added Services (VAS)

Call block service

Corporate color

5.3 Challenges

The Ufone face many challenges with the ever rising needs of telecommunication. It

has to stay profitable with the declining economical circumstances of Pakistan. Ufone

face very muscular rivalry from its competitors. It must offer lowest rates with

superior quality service. New features and services should be introduced to make its

customers faithful, joyful and fulfilled.

5.4 Plans for Future

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Keeping in view the growth possible of the cellular industry there is no alternative but

to be violent in order to remain a powerful force in the cellular business. In order to

expand cellular network Ufone has finalize a massive network development

agreement amounting to about US$ 550 million, which will improve the subscribers’

capability by 10 million. This is the major ever extension plan of Ufone.

A muscular center will be on maintaining high excellence of service, which is always

a standard of Ufone, growing tradition and exploring new income streams on value

added services, market visibility through a variety of market initiatives to accomplish

subscribers’ pleasure and insist and above all to increase the value of investment for

the shareholders.

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Chapter 6 RECOMMEDATIONS & CONCLUSION

6.1 Recommendations

“Recommendation is rarely welcome; and those who want it the most always like it

the least”. Recommendations put forward improvements in areas which have scope

for polishing and development. Criticizing quite a lot of factors at Ufone does not

mean that these aspects are everlasting flaws of the business. In its place, it is future

that these mistakes be removed. For the elimination of these errors, sure

recommendations are forwarded.

Network Coverage

As compare to other cellular companies and especially the market giant Mobilink the

network coverage of Ufone is very low. If Ufone concentrate on the expansion of the

network coverage the result will be increase of market share & sales. In the remote

areas of Pakistan & especially in Malakand division there are such areas which have

no network coverage. Still in these areas there is large capacity of market share

waiting for Ufone to capture.

High Post Pay Tariff

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As compared to other networks Ufone post pay tariff is very high. Mostly in the post

pay segment the cellular companies has the cream customers and most of the earnings

come from this segment, therefore it is recommended for the decrease of the post pay

tariff to increase the market share and sales.

High Rates Of GPRS & Mms Facility

Mostly in the cellular market the customers switch to other networks which have low

cost of GPRS & MMS, therefore it is recommended that Ufone should decrease their

charges list in this category.

Franchise & Head office GAP

Most of the times when the franchise lodge a solution for their customer’s problem

the response is so much delayed from the head office that result in the frustration of

the customers.

Low Pre Paid Cards Percentage

Compared to the other cellular companies the sales commission of the Ufone is not

too much good for the whole sellers & retailers. The whole sellers & retailers spend a

lot of money to purchase the inventory and mostly prefer the inventory which has

high sales percentage.

Training Of The Sales Officers

The sales department is the most important department for the cellular companies.

The sales channel of Ufone is too much unsatisfactory. The sales are made through

the franchises. The franchises appoint their own sales staff and salaries are settled

46

from the franchise level. The sales staff does not enjoy any kind of benefits & training

from the Ufone Company. Ufone needs improvement in this category & needs to train

their franchisee sales officers.

Motivation

According to employees of Ufone there is no aspect present for employee’s

inspiration but the management says that they inspire their employees.

Have A More Professional Attitude

The Ufone does not follow professional attitude a lot of business personal employees

are assess on the bases of personal relations with upper management.

6.2 Conclusion

By intensely analyzing the Ufone marketing, I agree that Ufone is not a privileged

actor in the marketplace. It is piercing its market by taking risks and forcefully

promoting & advertising itself. It holds second major market share and is looking for

to become the market leader at any rate possible. We came from side to side very

option strategies and ad campaigns while working on this report. We believe that

mobile services are the toughest market to come in and stay alive. And in this hard

market Ufone isn’t only existing but growing at an outstanding rate.

47

Ufone is using humorous theme in its ads which has become its standard. People take

delight in watching, discussing and following Ufone ads the most. And it is the

biggest success of Ufone in current era.

We wish a very best of luck to Ufone. May it development in this field and

accomplish its much loved goals. (AMEEN)

BIBLIOGRAPHY

Kotler, Philip. Marketing Management. The Millennium Edition. Prop of

Northwestern University.

Tull, Donald S and Hawkins, Del I, “Marketing Research Sixth Edition.

Department of Marketing University of Oregon.

Iqbal, Fahad, “Internship Report on PTML Ufone”, University of Central

Punjab.

Pakistan Telecommunication Authority, (2009).Annual Report of Mobile

Cellular Services.

PTML Ufone, (2009) Brochures, Tariffs.

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