CHAPTER # 1 - INTRODUCTION TO UFONE

1.1 INTRODUCTION

Ufone understand the value of words and the need to communicate effectively and

efficiently at all levels of society, which is why ufone’s primary focus is on U, Ufone’s

valued customers bring strength to the company.

With a fresher look than is accepted and appreciated across the board by people of all ages,

we aim to connect with you and provide you state of the art services. No matter who you

are, where you are, what you want to say, how you want to say it or how you feel, you are

our focus. Because at Ufone, it’s all about U!

1.2 COMPANY’s PROFILE

Pakistan Telecom Mobile Limited (PTML) is a wholly owned subsidiary of Pakistan

Telecommunication Corporation Limited (PTCL) that started its operations in January 2001

under the brand name ‘Ufone’. As a result of PTCL’s privatization, Ufone became a part of the

Emirates Telecommunication Corporation Group (Etisalat) in 2006.

Since its inception, Ufone has focused on the people of Pakistan, empowering them with the

most relevant communication modes and services that enable 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 uniquely humorous communication direction that has now become Ufone’s

signature across all advertising media, Ufone gives its customers many reasons to smile.

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.

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1.3 STRUCTURE

In Ufone the hierarchy is very lean, 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 approved at the

higher level. But at the department level the structure is decentralized.

UFONE has following functional departments:-

1. Technical2. Customer operations3. Finance4. Administration & Procurement5. Human Resource6. Co-ordination (Govt. relations)7. Marketing

　

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Pakistan Telecommunication Mobile Ltd. (PTML),

Ufone

Type Private

Genre Subsidiary

Founded January 29, 2001

Founder Pakistan Telecommunication Company Ltd

HeadquartersIslamabad, Pakistan

13-B, F-7 Markaz

Area served 2336 cities of Pakistan, GT Road, Super Highway & Motorway

Key people Mr.Walid Irshaid , CEO

Industry Telecommunication

Products Pre Pay, Post Pay

Revenue ▼ Rs.9.214 billion PKR (Closing quarter 2009-10).

Parent PTCL Pakistan

Slogan It’s all about U! (Tum He Tou Ho)

Website www.ufone.com

Current CEO (Chief Executive Officer) & President of UFONE is Mr.Walid Irshaid Ufone’s Head Offices is in Islamabad

1.4 PERFORMANCE

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

Pakistan telecom market which has led to reduction of prices to bare minimum level, due to

its aggressive policies and exercising strict control over expenses the Company managed to

improve its revenue and after-tax profit by 87% and 54% respectively, as compared to last

year.

1.5 MARKETING STRATEGY

Keeping in view the growth potential of the cellular industry there is no option but to be

aggressive in order to remain a potent force in the cellular industry. In order to extend cellular

network to new cities, towns and highways and enhance its current installed capacities in

existing cities, Ufone has finalized a huge network expansion contract amounting to about

USD 550 million, which will enhance the subscribers’ capacity by 10 million.

A strong focus will be on maintaining high quality of service, which is always a benchmark

of Ufone, increasing usage and exploring new revenue streams on value added services,

market visibility through various market initiatives to fulfill subscribers’ satisfaction and

demand and above all to increase the value of investment for the shareholders.

1.6 MILESTONE

Ufone is the only GSM operator with 2.5G GPRS services, which is the “next generation”

technology and offers

High Speed Data Services Through Your Ufone

WAP Data Services

Multi-Media Messaging Services (MMS)

First Class Customized Data and Voice Solutions for our clients including

mobile office.

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1.7 ACHIEVEMENTS

During 2006 Ufone successfully completed the network expansion of Phase 4 in existing as well as in new cities and towns which amounted to more than US Dollar 170 million. As a result the asset base of the Company has increased from Rs. 20 billion to Rs. 27 billion.

Ufone adopted the policy of simplified tariffs with no hidden charges, which resulted in positive impacts on total subscriber base, which has increased from 2,579k in June 2005 to 7,487k in June 2006.

Ufone currently caters for international roaming to more than 195 live operators across 119 countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal and Kuwait with lowest rates, featuring no security deposit and activation charges. GPRS roaming facility is available with more than 75 Live Operators across 59 countries.

The Company has also been awarded a new License for providing cellular services in Azad Jammu & Kashmir and the Northern Areas.

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CHAPTER – 2 SITUATIONAL ANALYSIS

2.1 INDUSTRY ANALYSIS OF UFONE

2.1.1 PORTERS FIVE FORCES MODEL

Five forces model or porter’s model is an analytical approach use to analyze a firm’s industry environment. Factors that are considered in five force analysis are as follows:

Threat of New Potential Entrants

Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of Substitute

Rivalry among Established Firms or Competitors

2.1.2 IMPLEMENTATION OF PORTERS FIVE FORCES MODEL

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Threats of new entrants

Competitive Rivalry Power of buyersPower of suppliers

Threats of substitutes

Forces Strength with Respect to Industry

Low Medium High

Reasons Companies Strategy

Threat Of NewPotential Entrants

Lower Call RatesHuge NetworkVoice QualityBig Market ShareEasy availability

Company should continue its low rates packages to compete with its competitors.

Bargaining Power of Buyers

Similar Call ratesLow MNP ratesSimilar PackagesLow switching CostUndifferentiated Services

Product differentiationNew offersIncrease BrandLoyalty among customers through competitive advantageBringing out innovative services.

Bargaining Power Of Suppliers

Their suppliers in the market are less but they sell to many No substitute of suppliers.

Company should work on creating long term healthy relationships with the suppliers.

Threat Of Substitutes

Number of substitute available e. g Telenor, Mobilink, Warid, Zong Same services characteristics by competitor’s substituteLow switching Cost

Service differentiationValue additionBuilt brand name through brand awarenessDevelop brand imageUse competitive advantage as a tool

Rivalry AmongEstablishedFirms OrCompetitors

Number of competitors Plenty of growth opportunity in marketSimilar service characteristic

Increase level of competitive activity Price reductionNew services

2.2 COMPETITOR ANALYSIS

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The competitive environment for mobile telephony in Pakistan is tough and Ufone’s

is a major player of the market. Primary competition is of course between four mobile

operators for the share of the market. But there is other potential source of competition,

which should also be taken into consideration.

2.3 DIRECT COMPETITION:

Direct competition to Ufone service is with thee licensed mobile world in today’s market.

These are:

Mobilink.

Warid telecom.

Telenor.

Zong

2.4 INDIRECT COMPETITION:

The indirect competition is from:

Fixed line services.

Card payphone services.

Prepaid calling cards.

Massive expansion in penetration and quality of fixed line, payphone and prepaid calling

cards can effect mobile business environment.

Economic Scenario of Pakistan makes this observation relevant because mobile services

are still comparatively much expensive and customer may prefer to use cheaper, more

readily available alternatives.

2.5 Cellular Competition

You can call it 'cellular war' as the intensity of competition is so high. In Pakistan’s telecom

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industry, millions of confused and satisfied subscribers look up to the service providers for them

to sustain at 'one' fixed tariff policy. The variation in tariff plans almost every other month is

outcome of severe competition between cellular companies especially after entrance of two

new cellular companies in 2005. Nearly all cellular companies in Pakistan modified their tariffs

during last 12 months.

2.6 Pakistan - 10 Million New Customers in 2007

Cellular News has reported that Pakistan gained 10 Million new cell phone customers in first 4

months of 2007. Not much of a news but it shows that the rate of growth is still in high gear.

Telenor garnered the biggest portion, with 3m or 30% of the total, ahead of Mobilink (27%),

Ufone (25%) and Warid Telecom (21%).

Ufone was the best performer in April, adding 0.89m customers, or 32% of the monthly total.

Mobilink crossed the 25m customer barrier, becoming only the 11th Asian mobile company to

do so, after China Mobile, China Unicom, NTT DoCoMo, KDDI, Telkomsel, Bharti, Reliance, BSNL,

Hutch etc.

2.7 Mobilink GSM

Mobilink GSM

Pakistan Mobile Communications Ltd (PMCL)

Type Private Limited Company

Genre Subsidiary

Founded 1994

Founder Motorola USA

HeadquartersIslamabad, Pakistan

42 Kulsum Plaza, Blue Area

Area served 5000 cities, towns, and villages across Pakistan

Key people Zouhair A Khaliq, President and CEO

Industry Telecommunication

Products postpaid Indigo , prepaid JAZZ, Mobilink PCO

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Owner Naguib Sawiris

Parent Orascom Telecom Egypt

Slogan Reshaping lives

Website www.mobilinkgsm.com

Pakistan Mobile Communications Limited, better known as Mobilink GSM, is a

telecommunication service provider in Pakistan. According to PTA statistics, Mobilink has

30.88 million customers by January 2008. Mobilink's Head office is located in Kulsum Plaza,

Blue Area, Islamabad.

Mobilink started operations in 1994 as the first GSM cellular Mobile service in Pakistan by

MOTOROLA Inc, later it was sold to Orascom, an Egypt-based multi-national company.

Mobilink's corporate postpaid package is sold under the brand name "Indigo" and prepaid by

the name of "Jazz".

Mobilink is the largest cellular service provider in Pakistan.

2.8 Warid

Telecom

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Warid Telecom

Type Private

Founded 2004

Headquarters301-Dhabi Tower, Hamdan Street, Post Box

44222, Abu Dhabi, United Arab Emirates

Key people

Sheikh Nahayan Mabarak Al Nahayan, Chairman

Mr. Bashir A. Tahir, CEO Abu Dhabi Group &

Warid International

Industry Telecommunication

Products Telephony

Slogan We Care

Websitewww.waridtel.com(Pakistan)

www.waridtel.com.bd (Bangladesh)

Warid Telecom International is an Abu Dhabi based mobile telecommunication firm

providing telephony services in Bangladesh, Pakistan and Uganda.

Warid is expected to launch in Congo soon.

In December 2005, Warid Telecom International LLC obtained a 15 year GSM license to

operate as the sixth mobile phone operator in Bangladesh for 50 million US dollars.

Warid Bangladesh launched their operations on the 10th of May, 2007 and uses the code 16

preceded by the code number of Bangladesh +880. Warid Bangladesh has acquired a million

subscribers within 70 days of launch.

The company started rolling out network from mid-2006. In less than a year, amidst much

speculation, Warid Bangladesh launched their commercial operation with 26 districts – the

largest ever launch in terms of network coverage and BTS Stations. Unlike its operations in

other countries Warid Bangladesh uses the slogan be heard instead of we care.

Currently Warid Bangladesh provides both post-paid and pre-paid connection plans. The

post-paid plan is branded and marketed across the country under the name Zahi Post-paid,

which means leader or royalty. The pre-paid segment is branded and marketed as Zem Pre-

Paid.

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In 2004, Warid Telecom International LLC, purchased a license for operating a nationwide

mobile telephony network, (WLL) and long distance international (LDI) for $291 million US

dollars and was the first venture of Warid Telecom International LLC.

Warid Pakistan launched its services in May 2005. Within 80 days of launch Warid Pakistan

claims to have attracted more than 1 million Users.

2.9 Telenor

TelenorType Public

Founded 2005

Headquarters Fornebu, Norway

Key peopleCEO: Jon Fredrik Baksaas, Chairman:

Thorleif Enger

Industry Telecommunication

Products Telephony and broadband

Revenue ▲ 91.1 billion NOK (2006)

Operating

income▲ 18.3 billion NOK (2006)

Net income ▲ 15.9 billion NOK (2006)

Employees 31,750

Slogan Here to help

Website www.telenor.com

Telenor (OSE: TEL, NASDAQ: TELN) is the incumbent telecommunications company in

Norway, with headquarters located at Fornebu, close to Oslo. Today, Telenor is mostly an

international wireless carrier with operations in Scandinavia, Eastern Europe and Asia.

In addition, it has extensive broadband and TV distribution operations in four Nordic

Countries.

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At year-end 2005, Telenor held controlling interests in mobile operations in Norway,

Denmark, Sweden, Ukraine, Hungary, Montenegro, Thailand, Malaysia, Bangladesh and

Pakistan. In October 2006, Telenor entered into an agreement with Vodafone Group for the

acquisition of subsidiary Vodafone Sweden for a consideration of NOK 8,170 million,

including assumption of debt.

Telenor Pakistan is a wholly owned subsidiary that started operations on the 15th of March

2005 and holds one of six mobile licenses in Pakistan. Its also the fastest growing cellular

network of Pakistan. Currently Telenor holds the second largest GSM and the largest GPRS

and EDGE coverage in Pakistan. It has also achieved the second largest retailer network in

Pakistan within the 2 years of its operations and it has started operations in Azad Kashmir

and the Northern Areas of Pakistan. Telenor has reached its \

breakeven in the first quarter of 2007 and beat largest mobile operator Mobilink in sales.

Telenor proactively participated in earthquake disaster relief, and is carrying out a campaign

for the welfare of flood victims in Balochistan. Current CEO of Telenor Pakistan is Tore

Johnsen.

2.10

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ZONG

TypeMobile Phone Operator

Founded 2008

Headquarters Pakistan

IndustryTelecommunications

Mobile Communications

ProductsMobile services,

Data services

Parent China Mobile

Website [1]

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

to empower and liberate the people of Pakistan in every nook and corner 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.

The core essence of ZONG is to allow people to communicate at will. Without worrying

about tariffs, network coverage, capacity issues or congestion. ZONG will be supported by

ground breaking communications, trend setting customer service and an unmatched product

offering which will redefine rules of the game and establish ZONG as a serious

contender for the number one spot. ZONG would offer its customers with entertaining &

innovative value added services and will empower them by giving a wide variety of products,

services & content to choose from.

We are privileged to be the pioneering country introducing this brand with others to follow.

And God willing, together we will also make ZONG a success story for others to try and

replicate.

China Mobile has already invested $500 million in Pakistan and has plans to invest more. The

company plans to increase coverage area by several thousand miles, including highways with

the capacity of 20m subscribers.

CHAPTER-3 CUSTOMER ANALYSIS

3.1 Definition:

Collection and evaluation of data associated with customer needs and market trends, through customer focus groups, customer satisfaction measurement, field testing, etc

3.2 ANALYZING CUSTOMERS IN YOUR BUSINESS PLAN

The Customer Analysis section of the business plan assesses the customer segments that the company serves. In it, the company must

1. Identify its target customers

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2. Convey the needs of these customers

3. Show how its products and services satisfy these needs

The first step of the Customer Analysis is to define exactly which customers the company is serving. This requires specificity. It is not adequate to say the company is targeting small businesses, for example, because there are several million of these types of customers. Rather, an expert business plan writer must identify precisely the customers it is serving, such as small businesses with 10 to 50 employees based in large metropolitan cities on the West Coast.

Once the plan has clearly identified and defined the company's target customers, it is necessary to explain the demographics of these customers. Questions to be answered include:

1. How many potential customers fit the given definition and is this customer base growing or decreasing?

2. What is the average revenues/income of these customers?

3. Where are these customers geographically based?

After explaining customer demographics, the business plan must detail the needs of these customers. Conveying customer needs could take the form of past actions (X% have purchased a similar product in the past), future projections (when interviewed, X% said that they would purchase product/service Y) and/or implications (because X% use a product/service which our product/service enhances/replaces, then X% need our product/service).

The business plan must also detail the drivers of customer decision-making. Sample questions to answer include:

1. Do customers find price to be more important than the quality of the product or service?

2. Are customers looking for the highest level of reliability, or will they have their own support and just seek a basic level of service?

There is one last critical step in the Customer Analysis -- showing an understanding of the actual decision-making process. Examples of questions to be answered here include:

1. Will the customer consult others in their organization/family before making a decision?

2. Will the customer seek multiple bids?

3. Will the product/service require significant operational changes (e.g., will the customer have to invest time to learn new technologies and will the product/service cause other members within the organization to lose their jobs? etc.)

It is essential to truly understand customers to develop a successful business and marketing strategy. As such, sophisticated investors require comprehensive profiles of a company's

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target customers. By spending the time to research and analyze your target customers, you will develop both enhance your business strategy and funding success.

3.3 CUSTOMER ANALYSIS & MARKETING

The customer analysis and marketing process allows your organization to identify and target the most profitable customers with marketing campaigns directed at various distribution channels. Integrating these channels allows for targeted sales force management and the tracking and monitoring of campaign results.

CHAPTER-4 SWOT ANALYSIS FOR UFONE

Ufone GSM is a Pakistani GSM cellular service provider. It is a subsidiary of Pakistan

Telecommunication Company Limited. It has a subscriber base of 20 million as of June 2009.

The company commenced its operation under the brand name of Ufone from Islamabad in

January 29 2001. During the years, Ufone continued on the path to success; the company has

network coverage in more than 5885 locations and across all major highways of the country.

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4.1 STRENGTHS

1. NETWORK COVERAGE Ufone has a network coverage in more that 5885 locations and

across all major highways of the country.

2. INTERNATIONAL ROAMING Ufone currently caters for International Roaming to more

than 230 live operators in more than 130 countries. Ufone has introduced International

Roaming facility for prepaid subscriber in various countries around the globe with the lowest

call rates, featuring no security charges and activation charges.

3. GPRS ROAMING GPRS roaming facility is available with more than 115 live operators

across 85 countries.

4. LICENSE FOR AZAD JAMMU KASHMIR AND NORTHERN AREAS The company

has also been awarded a new license for providing cellular services in Azad Jammu and

Kashmir and Northern Areas.

5. QUALITY COVERAGE

Ufone provides its subscriber with quality coverage and clear connectivity.

6. VALUE ADDED SERVICES Ufone is a host of value added services and data

connectivity with the best network in Pakistan.

7. LOWEST PRICES Ufone offers the most reasonable prices for its users.

8. REPRESENTATIVE OF PTCL Ufone acts as a representative of PTCL as it is its

subsidiary

9. PIONEERS OF MMS AND GPRS Ufone was the first to launch GPRS services and

Multimedia Messaging Service (MMS) and prepaid roaming in Pakistan. The network also

allows Ufone subscriber to have high speed wireless data service.

10.SECOND LARGEST MARKET SHARE Ufone is the second largest cellular operator in

Pakistan with subscriber base of around 6.5 million and a market share of nearly 25%.

4.2 WEAKNESS ES

1. BEHIND ON EXCESSIVE DEMAND This is Ufone’s biggest weakness; company is

unable to meet the demands

2. POOR ORGANIZATIONAL STRUCTURE Centralized structure failed to provide proper

guidance over instruction and policies.

3. STAGNANT PROFITABILITY As compared to financial assets, Ufone is not close to

expected profitability.

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4. OVERLY DEPENDENT ON PTCL Since, it is a subsidiary of PTCL IT is dependent on

PTCL.

5. LACK OF FRNACHISE It has many franchises in the whole country but as its customers

are increasing day by day so its present franchises are not enough to fulfill the needs of it

customers.

6. LACK OF INNOVATIVE SERVICES Ufone though has some unique and distinct

services but it has not yet given many innovative services as compared to other cellular

companies.

7. NETWORK COVERAGE Its coverage on Southern part of Pakistan is quite good but in

northern areas its coverage is a bit poor.

8. COMPETETION When Ufone came into the seen in Pakistan cellular market Mobilink

was already prevailing in the market and it was all Mobilink monopoly that time. Though

with the passage of time Ufone took many customers of Mobilink but still Mobilink has large

number of users because it was first to Pakistan’s cellular market and this is the competitive

disadvantage to Ufone.

9. INTERNAL PROBLEMS Ufone is plagued with some internal problems like when it is

privatized to Etisalaat being the part of the PTCL many employees were not happy with the

pay scale that they were offering.

4.3 OPPURTUNIT IES

1. CONTINUING TO EXPAND GLOBALLY Ufone has the ability to expand globally. But

due to current economic condition all its operation on halt.

2. PUBLICITY AND MARKETING With the right marketing strategy they can acquire

much more.

3. DEVELOP NEW VALUE ADDED SERVICE This is an opportunity that will never be

satisfied, meaning that Ufone should always be attempting to keep improving new value

added services and as we know what is in today will be out tomorrow.

4. INTRODUCE KIOSK TECHNOLOGY Ufone can surprise its competitors by introducing

“Ufone kiosk”. These will be ATM like machines and that will give 24-hour service to Ufone

subscribers to load the balance just like they take money from ATM.

5. DEVELOP FRANCHISE IN REMOTE AREAS Ufone should develop some new

franchises in remote areas so that people will get more and more benefit from it and it will

help to increase their customers. Ufone should extend its network coverage area to Northern

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part of the country as well because in that part not too many companies are giving services

and if Ufone give its service there then it will definitely attract people and its number of

customers will shoot like a rocket.

4.4 THREAT S

1. GOVERNMENT INTERFERENCE Government interference in terms of taxes will

always be treated as a threat.

2. PTCL CELLULAR LICENSE

Ufone is nothing just a cellular license to PTCL, PTCL should provide more financial support

to enhance profitability of its subsidiary company.

3. PENSION PAYOUTS Part of this threat is their own doing and other is simply

unavoidable. Ufone is responsible for providing generous pension benefits to its employees,

which at time seems like a great idea, however they are now experiencing problems as more

and more people begin to collect.

4. INCREASED HEALTH CARE COSTS Ufone, like many large companies with quality

employees’ health care benefits, is experiencing a large financial hit that only get worse as

time continues as compare to other cellular firms

CHAPTER 5 MA RKETING STRATEGIES

5.1 MARKET SEGMENTATION

Cellular service market is a diverse set of people. Ufone as well as other cellular service companies segment their market on four bases: - economy, age, gender & occupation.

I. ECONOMY : Upper class, Middle class, socio-economic class, lower class

II. AGE : Teenagers, youngsters, middle age, aged people

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III. GENDER : Male & Female

IV. OCCUPATION : corporate class, Business class, working class etc

　

5.2 TARGET MARKETS

Cellular phones are the technology of new era, the 21st century. These cellular phones are the main focus of our youngsters. All the cellular companies are targeting The Youth one way or other. Ufone is no longer a follower in this race. Its main focus is “THE YOUTH” of Pakistan which is its Target Market.

Target marketing strategy

Ufone has always been targeting Youth Market by using young brand endorsers or ambassadors. It always brings such packages and offers that precisely meet the needs of our young people. No doubt it has also launched packages, brands and offers for working people, business class, ladies and aged ones. Ufone seeks to target masses in the long run.

　

5.3 POSITIONING

Positioning is the process of creating an image of company’s brand in the mind of market. Companies position themselves emotionally, functionally or on the basis of brand quality. Ufone is still a market challenger in comparison to market leader MOBILINK. It is still to reach to the top most position of cellular companies. So Ufone positions itself on the basis of its services.

Ufone’s former 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:

Ufone changed the image of mobile phones from a luxury only affordable by the elite, to a necessity affordable by the common man. Since its inception, Ufone has positioned its brand for “MASSES” on the basis of services it is providing and its lowest call rates. It makes them believe that it satisfies the needs of everyone (viz all classes, age & genders). It tells them that Ufone is there when anybody needs it. The brand name UFONE itself is a positioning statement.

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5.4 DIFFERENTIATION

In these days of intense competition marketers find it hard to differentiate their services from those of competitors. Now customer care about only price. An unsatisfied customer will immediately go for brand switching. Thus leaving a customer unsatisfied and not meeting his/her demands is out of question for marketers.

Differentiation Strategy:

Ufone has always strategized in satisfying the demands of its customers. In doing so it has been successful in differentiating itself in terms of:-

Price Quality service Technology

　

5.5 CUSTOMER RELATIONSHIP

With 28 million mobile users in Pakistan, Ufone is having a subscriber base of around 7 million. Ufone is showing a remarkable growth rate. It is maintaining a healthy customer relationship through its “customer service centers” and “call centers”. Its department of “Customer Operations” is specially designed for maintaining Customer Relationships.

Customer Relationship Strategy:

Ufone strategize to build and maintain strong customer relationships in order to build long-term customer loyalty and to capture customer lifetime value. In this context Ufone has been training its internees and permanent employees in the fine art of interacting with customers. It is also strategizing to offer gifts & rewards for its long-term customers in its PostPay to match the wonderful customer relationship strategy of INDIGO.

　

5.6 TOTAL MARKET ORIENTATION

Total Market Orientation is about understanding and meeting customer’s expressed and latent needs.

Strategy:

Ufone has always considered the ever growing needs of low call rates and quality service. It has provided its customers their needed packages and has introduced such brands & packages that meet customer’s latent needs as well. For example 5 ka 15 is result of a latent need of women of our society. They plan to make a short call but it becomes a long one unintentionally due to gossips and chit chats J

5.7 MARKETING MIX

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1 - PRODUCT/SERVICES

Ufone is a service providing company. Service is any intangible product that consists of activities, benefits or satisfactions offered for sale.

Strategy:

Ufone makes strategies to provide a better cellular telephonic service which excels its competitors at all levels. When Ufone launches a new package in a market, it actually makes it a complete package of core benefit, design, features, brand name, quality, and after sale service.

　

　

2 - PRICE

Cellular service providers are facing intense price competition in contemporary market. Customers perceive pricing as the heart of brand selection. Price has always been the core differentiation of Ufone. Ufone is the one who is offering least call rates off-network.

Strategy :

Ufone strategize to capture the existing pricing needs of its customers and use it well on occasional or timely basis. For example Ufone offered very good call rates on international calls in Eid days. It offered hourly call rates in Ramadan when people were least likely to avail the offer that much that it might prove unprofitable for Ufone. It was a fantastic strategy to beautify the brand image in term of pricing in customer’s minds as well as remain profitable in doing so. Ufone follows market penetration pricing strategy and dynamic pricing strategy to meet the customer needs and ever changing price competition.

　

3 – PLACE

Place plays a very important part in the distribution and promotion of services.

Competitors of Ufone are seeking to penetrate into places where others haven’t reached. Cellular service providers are drastically widening their network & coverage in every area of Pakistan. Mobilink has this edge in place excellence because it is the pioneer in cellular telephonic field.

Strategy :

Ufone strategize to widen its coverage to all places in Pakistan in order to meet the requirements of its increasing customer base. Now Ufone is heading from cities to remote

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northern areas in expanding its network. Ufone has intensive promotion in cities, but it is also considering improving its promotion in rural areas as well.

　

4 - PROMOTION

Ufone believes in Integrated Marketing Communication which is a carefully blended mix of promotion tools. Ufone employ different marketing activities and channels to communicate and deliver value to customer. These activities are coordinated to provide maximum communication output. These communication channels includes:-

Advertising, sales promotion, public relations, direct marketing & personal selling.

Ufone strategize to carry out promotion in order to increase its market share.

Strategy :

Advertising (discussed later) Sales Promotion (discussed later) Public Relations : Ufone is less conscious of developing its general

public relations. But recently it has launched its “Hajj Guide” service on Ufone. It avoids getting in news stories and controversies but sometimes it proves inevitable.

Direct Marketing : Ufone employ on-road umbrella franchises where the directly market and sell their connections and Sims.

Personal Selling : Ufone administer personal selling facility to sell their PostPay connections targeting well to do people and businessmen

› It won’t be an exaggeration to say that Ufone has placed itself where it is now through brilliant promotions.

CHAPTER 6

FINDINGS

I observed a trend of aggressive marketing and advertisement by the

mobile operators in Pakistan. They proudly announce 50 paisa, 3 paisa, 1 paisa call rates. Trying to one-up other competitors, the advertisements emphasize the lowest possible rate to grab the consumer attention.

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In reality the low rates being advertised come up with many

conditions. To figure it out one has to read the fine print carefully that usually marked with * (asterisk). I think this is unfair to the consumers and we need to criticize this trend which some may characterize as deceptive marketing.

Pakistan has remarkable growth in telecommunication industry. It is

found that 75% population of Pakistan has mobile phones and the counting is increasing day by day. PTA recorded customers are about 98 million. This is huge craze in mobile industry.

Since I am working on this project, I found some irregularities:

Network Connectivity ProblemPeople are worried about cellular service they often complaint that cellular operators are not willing to enhance their services. Caller feels disturbance, busy network, and unauthorized call ending.

Dirty SMSCellular operators provide bundle SMS / MMS offers which results huge load on networks. Bundle offers also cause dirty and unethical jokes and SMS.

Rough/Unreal Ideas in AdvertisingMany cellular service companies are using rough ideas for TV advertisement. Specially prepaid products are not belonging to realities. The imagination is not attractive and not belongs to human.

Too Much AdvertisementCellular companies are having bombardment of advertisement on TV channels. People are fading up with this type of unnecessary advertisements.

RECOMMENDATIONS

Installation of equipment with professional engineers

Cellular companies must understand the worth of their presence in the market. If there is a growth, there is immense competition. Cellular companies should pay attention on the service which is providing to customers. They just spend on their network growth but don’t realize the value of service. Advanced Technological equipment should be

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installed with professional engineers this will benefit the consumers.

Call Rates & SMS Bundle offer

Companies should minimize the call rates instead of SMS rates. Low SMS rates causing dirty and non-sense jokes which is building unsecured society. Adults are wasting their time in sending and receiving unnecessary messages on mobile phone.

Attractive Advertising

After having comments on advertising campaigns with different living standards, I observed that companies are not efficient in advertising. Mostly cellular advertisers are using rough and unreal ideas which are not changing consumer’s perception towards any cellular service. Marketers should convince in polite way instead of Bhangra style. Companies should implement the effective advertising strategies which affect the consumer and easily deliver message.

Control on Advertising and Budget

Too much advertising lost its importance; companies should control the spots of advertising. They should avoid too much repetition of ad. People faded up and don’t want to watch ads. They should educate the people and give proper complete message against call rates and other value added services.

Companies spend much money on advertising campaigns; they should

control it and pay attention on service.

CONCLUSION

Telecom industry is most growing industry of Pakistan still huge investment required for coverage. The market also has strong competition after the entrance of China Mobile Company as player. Competitors are hiring professionals to entertain the consumer which is resulting technological implementation and value added services.

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Ufone is a place where one can live his dreams and pursue a career

that reflects his skills and passions. People in Ufone give flexibility for change, the opportunity to learn, and providing career options with endless possibilities The managers at Ufone believes that all employees have a right to offer input and be involved in helping their organization grow.

All departments are working together and they wants to create a work

environment in which employees can improve their minds, continuously learn, gain professional growth and feel inspired by similarly motivated individuals. The Ufone takes pride in providing the best possible working environment. They take a constant interest in ones progress by conducting evaluations and offering the support and resources one needs.

I reveal some complications in “Findings”. It has been analyzed that

people are concerned about call rates they do not prefer any particular company. Consumer searches good service with lowest call rates, although companies are minimizing call rates this will result more growth in the market and to meet the customer needs by satisfying them.

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