Marketing Management of Ufone.

INTRODUCTION:

PTML is a wholly owned subsidiary of PTCL…… ……Established to operate cellular telephony. The company commenced its operations, under the brand name of Ufone, from Islamabad on January 29, 2001. 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.

HISTORY:

During the year, 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. During the year July 2005 to June 2006, Ufone continued on the path to success. The Company further expanded its coverage and has added new cities and highways. Ufone has network coverage in more than 3475 locations and across all major highways of the country. Ufone’s operational performance has been very encouraging.

Huawei wins USD 550 million GSM (Global System Mobile) expansion contract from Pakistan's Ufone. Huawei future-oriented EnerG GSM Solution to cover over 1,500 locations in Pakistan ISLAMABAD – 26 September 2006 Huawei Technologies Co Ltd. ("Huawei"), a leader in providing next generation telecommunications network solutions for operators around the world, today announced that it has won a USD 550 million GSM contract to expand the wireless network of Ufone, one of Pakistan's leading telecom service provider.

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“To become the best cellular communication option available in the country for ‘U’”

“Ufone-last to enter, first to venture every time”

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PRODUCTS AND SERVICES OFFERING:

Services:

U TalkMy Ufone Account Services

Virtual Private

Network

Messaging Service Phone Book SaverMissed Call Notification

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Info service / Entertainment U Share Awaz SMS

Trivia Quiz U loanU Chat

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Ufone Call Bløck Service Ufone Video News Quran on Mobile

Urdu Info Service Packet Data Service (MMS)Call Features

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Products:

And

VALUE ADDED SERVICES:

Ufone also provides you with Prepay the most fun filled and exciting games and downloads you have ever had the privilege to experience.

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VALUE CHAIN ANALYSIS: Value chain is a high-level model of how businesses

receive raw materials as input, add value to the raw materials through various processes, and sell finished products to customers.

SIM’s of Ufone are manufactured abroad (Malaysia, Korea, China, Singapore) and imported in Pakistan. Imported SIM’s are stored in the head office (Islamabad).As it has no warehouses; it has only franchises and sales & customer care service centers for distribution.

Ufone clearly identifies the needs of customers and provides them the packages which are according to the needs and demands of customers. The major factor which is very imported that Ufone has no hidden tariff charges .They get confidence of their customers

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They send their the regional offices of different cities and the regional office further distribute to franchises and retail shops with the help of distributors.

Ufone subsidiary of PTCL was established to provide cellular services across Pakistan. Ufone is currently providing quality services across Pakistan. Ufone currently lowered their calling rates across other networks as low as 2.30/min which is currently the cheapest prepaid rates available in the market. Ufone with the backend support of PTCL always provides quality services to its subscribers. Ufone GRPS services are the best available in the market Ufone has a good customer support they are always cooperative and listen to your queries and solve them as early as possible.

Internet Bill payment is the special feature offered by Ufone for the first time in Pakistan they are always ahead from others in providing quality services. Web2SMS chat Mobile banking Pay via SMS is the best features offered by Ufone. With premium services of Ufone like picture messages, ring tones, operator logos, and colored wallpapers and animated greetings added value to Ufone services.

Ufone claims to have 3 million subscribers and still growing. Ufone is one of the best cellular company in Pakistan with reliable network and coverage to over 100 key cities and prominent highways. Ufone has very quit and peaceful environment. In Ufone head office every thing is properly departmentalize. Every person in the office is provided with every facility.

Ufone office has 100 employees that are currently operating in the office. They are provided with every benefit like heath, post job benefits. Ufone is using latest technology in their server. Stream lines are used to connect the calls. Each streamline connects 30 calls .PTCL charges for one stream line is 10,00000 per month from the other cellular companies, however Ufone is charged only minimum amount and the streamline are provided more than its requirement that, why stream lines are not crowded so voice quality is better. GSM technology is used for this purpose contact is made with Huawei under 550 dollars .further now its 25% shares are taken over by emirates.

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ENVIROMENTAL SCANNING: (PEST Analysis)

The country forces affecting the environment e.g. political forces, Economic forces, Socio-cultural forces, and Technological forces. These are known as PEST factors.

Political Factors:

• Political environment of Pakistan is stable in the current situation and country is doing excellent on economic front.• Environment is investor friendly telecommunication sector is under de-regulation. Political constraints affect the PTA rules and regulations,

and PTA rules and regulations affect the Ufone performance.

Before WTO implementation government already took steps in de-regulation of telecommunication sector.

Economic Factors:

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• Changes in the government sales tax affect the brand. Per capita income decreased as compared to previous years.• Inflation is controlling by state bank but unemployment rate is going up and up with the increase of level of poverty.

Socio-Cultural Factors:

As Ufone is the Pakistani Company and it has no social and cultural conflict. Therefore some changes are might occur in every Culture. Cultural changes affect the Organization and its Brands.

• Changes in the behaviors and attitude of the people affect the brand.• Changes in the Life style of the people effect the brand such as attracted toward foreign telecom companies.

Technological Factors:

Technological changes affect the company. Ufone have technology with which they can compete in the Pakistan and now Ufone is investing in its infrastructure to not only expand but also to upgrade their existing structure. Some change occur that effect the brand.

Technological changes such as CDMA. Changes in the technology system. Changes in the virtual networking like frequencies matters.

MARKET ANALYSIS:

Pakistan has become one of the fastest growing mobile markets among the emerging telecom markets. This year the sector grew by 80% whereas average growth rate in last 4 years is more than 100%. Total subscriber base stands at 82.5million (march 2008) whereas it was 34.5 million in 2006, 12.7 million in 2005 and in April 2008 the Ufone subscribers were 17,539,457. This tremendous growth is attributed to many internal and external factors starting from deregulation down to

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implementation of mobile number portability. The government and regulator are trying their best to facilitate the sector and making every effort to provide mobile access to every corner of the country.

Out of total population of Pakistan almost 90% of population is covered with mobile networks. In addition to fixed and WLL services to this percentage. All operators are increasing their networks to number of cities/towns/villages. Up to December 2007 more than 7,011 cities/towns and villages have mobile networks by one or all operators.

MARKET SHARE:

Telecommunication of Pakistan is growing industry in last few 5 years. Tele-density in country has jumped a mere 6% to 57% (Mar-08) in few years. Pakistan telecom has emerged as the fastest growing sector in the world where the infrastructure and subscriber growth pattern are unmatched all across the region. On average, 3 million subscribers and still growing

Ufone is the second market leader in telecom sector, the market shares of Ufone are 21% and it is still on growth stage.

The market of Ufone is segmented according to its valuable packages.

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COMPETITORS ANALYSIS:

Major competitors:

Mobilink Telenor Warid ZOng

These three companies are the direct competitors of Ufone. But MOBILINK is the major competitor of Ufone.

Competitors Geographic Image Gender

Mobilink Rural & Urban Reshaping Lives Male & Female

Telenor Rural & Urban The Smart Call Male & Female

Warid Rural & Urban We Care Male & Female

ZOng Rural & Urban Say It All Male & Female

STRENGTHS & WEAKNESSES OF MOBILINK (key competitor):

STRENGTHS:

Wide network range International brand Network capacity

WEAKNESSES:

High prices Foreign brand

Less known to culture

Basic competition of Ufone and Mobilink is with Price, Quality and Delivery to the Customers.

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Mobilink:

Mobilink enter into the market in 1994 as a market

leader both in terms of growth as well as having the

largest customer subscriber of over 30million and growing

(31,935,624 in April 2008)

Telenor:

The years of 1855 to 1920 was a pioneering period

in the history of Norwegian telecommunications. Manual

mobile telephony services were introduced in Norway in

1966; Telenor now has mobile operations in 12 markets

around the world. Telenor started its business in Pakistan

in 2006. Telenor has 17,323,169 subscribers in April

2008.

Warid:

Warid Telecom International Ltd. is a GSM-based

cellular operator in Bangladesh. Warid officially launched

their commercial services in Bangladesh on the 10th of

May, 2007. On 19th July, 2007 Warid Telecom

announced in major dailies of having achieved one million

subscribers in the first of 70 days of operation (14,760,593

subscribers in April 2008).

ZOng:

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ZONG is the first International brand of China

Mobile being launched in Pakistan. It is meant to

empower and liberate the people of Pakistan. Subscribers

of ZOng in April 2008 were 3,146,763.

Market share:

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PORTER’S FIVE FORCES MODEL:

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Barrier to entry:

There are low entry barrier in the telecom industry. Last four to five years many multinational companies enter in to the industry that shows that entry barrier are low. The entry barrier that probably ever company has to face is setup cost, capital cost etc

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Buyer power:

Buyer power is low as compared because company offers a non-negotiable price to its buyer. Buyers are force to buy the price offered by company

Supplier power:

Supplier power is low as there are no suppliers of this brand the material is imported out side the country so supplier power does not exist in this concern.

Competitive rivalry:

Overview of last five to four years indicates that many companies enter in to the industry so competitive rivalry is high in the industry as ZOng, Telenor and Warid introduction and competing on prices and coverage.

Threat of substitute:

Always there is a threat of substitute for the mobile telecom as PTCL and other v wireless are in the industry. Also there are substitute like dialing cards PCO, Consumer may switch from Mobile to other substitute so threat for substitute is high in the industry.

SWOT ANALYSIS OF U fone:

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Strengths:

National company. Subsidiary of PTCL. Use of fiber optic technology. Stream line benefit. More customer focus. Knowledge about country culture. Many product lines. Broad market coverage. R & D skills and leadership. Increase in customer Good will. Brand name Reputation (Ufone Tum He Tou Ho). Appropriate management style

Weaknesses:

Low market share as compare to competitor (Mobilink). No ability to manage strategic change. No availability of Call diversification. Inadequate human resources as compare to competitor

(Mobilink). Inadequate information system as compare to competitor

(Mobilink).

Opportunities:

Growth in market. Expand core business. Widen new market segments. Extend cost or differentiation advantage (contract with

Huawei). Apply brand name capital in new areas. Seek fast market growth. Apply R & D skills in new areas. Increase in Large number of user.

Threats:

Price competition. Change in consumer taste. Increase in domestic and foreign competition. Change in demographic factors. Increase in rivalry among competitors. Entrance of new competitors.

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Unstable political environment.

BUYER BEHAVIOUR:

Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A consumer, making a purchase decision will be affected by the following three factors:

1. Personal2. Psychological3. Social

HIGH INVOLVEMENT LOW INVOLVEMENT

Significant Differences

Between Brands

Complex buying behavior Variety seeking

buying behavior

Few Differences Between

Brands

Dissonance-reducing

buying behavior

Habitual buying behavior

As consumer behavior is always variety seeking in every product. They always want change to have better taste or service. As in telecom industry there are a number of companies who are trying to serve people better than their competitors. A little change in the price and network coverage may shift the people trend. In this telecom sector people are Varity seeking. New packages may shift the people frequency to other network.

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Maslow’s level: what the organization could do?

Physiological Needs needed for basic survival (food, shelter, sexual satisfaction).

Safety Need to feel safe within your environment.

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S ocial Need to feel Love, Friendship, and belongings (Ufone).

Esteem Need for self respect, status, and recognition.

Self actualization Point of reaching ones full potential.

CELLULAR SUBSCRIBERS:

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The above graph shows the growth in the cellular subscriber. As in the year 2002-03 the subscribers are just 2.4%, but the tremendous increase comes in 2005-06 i.e. 34.5%. And now in 2008 it is up to 82.5% that shows the people trend towards telecom industry, and it is a better hope for the telecom industry that more subscribers will enter.

Factors Influencing to Make Purchase Decision:

Price:

People are variety seeking as in prices. Where the price of any product is low people change their taste and divert towards that low price product.

Quality:

Network quality preference to consumers and new introduction of Server technology, as it has the benefit of PTCL subsidiary.

Coverage:

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Coverage a main aspect of factor people may switch on this base. Ufone covers most of the geographic areas.

New promotion:

With promoting services that has factor too for consumer switch age. Fierce promotion leads an image in the mind of the consumers that company offers many servers and “a customer focus company”.

MARKETING GOALS:

Marketing goals of Ufone are set in terms of:

Per month sales of Ufone prepaid Sims are 300 Sims. The approximate revenue is 84% of total sales. The after tax profit is of 53% of total sales

approximately. The market share of Ufone is 21% and it is the

Pakistan’s 2nd largest cellular company. Ufone has network coverage in more than 3475

locations and across all major highways of the country and provides International Roaming facility with more than 150 international operators across 79 countries.

Ufone is continuously introducing new products; recently it has introduced the CDMA technology.

The brand image is wholly depending on its positioning strategy that is “ITS ALL ABOUT U.”

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HIERARCHY OF ORGANIZATIONAL GOALS:

Ufone is maximizing the shareholders wealth by increasing Return on Investment (ROI)

ROI is increased through increasing profits

Profits are increasing through increase in sales day by day

The market share is increasing due to rising sales

Market share is increasing due to improved brand management of existing products and launching new products

and by exploiting new market opportunities.

SEGMENTATION & TARGETING:

Ufone change the image of mobile phone from a luxury only affordable by the elite, to a necessity affordable by the common man. It increases its focus on the youth segment. Ufone brand team launched aggressive campaigns, which further increase the brand equity.Ufone has different target market according to its different packages that are as under:

All Ufone prepay packages target the Youth. The post paid packages are mostly for the Business

related people.

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POSITIONING:

“It’s all about U”

Competitors:

“Reshaping lives” (key competitor)

Others:

“We care”

“The smart Call”

“Say it all”

PRODUCT & PRICING:

The company has two main Product lines

(Post pay and Prepay) for all its valued customers. To

capture every segment of the market, Ufone has further

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customized its packages. Postpaid is further differentiated into

4 plans including a very competitive Zero Line Rent package.

Ufone has introduced a very simplified tariff structure for its

customers with a flat rate of Rs. 2.50/min to any operator all

over the country. The on nets off peak rates also remain

amongst the lowest at Rs. 1.50/ minute. Similarly Ufone has

the most competitive SMS, GPRS and MMS rates having the

lowest international SMS rate at Rs. 1.50, GPRS/MB rate at

Rs. 15, MMS rate at Rs. 5 These simplified tariff plans and

user friendly packages have greatly helped Ufone in

becoming the fastest growing operator in the country.

Call Charges of Ufone Prepay:

UFONE PREPAY TARIFF

(RS.)

WITHIN

UFONE

COMMUNITY

TO OTHER

NETWORKS

TO PTCL

Outgoing Call rates / Peak

 (7am - 10pm) Per Minute

Rs. 2.50/min Rs. 2.50/min Rs. 2.50/min

Outgoing Call rates / Off Peak

 (10pm -7am)  Per Minute

Rs. 1.50/min Rs. 2.50/min Rs. 2.50/min

SMS Per 160 Characters 50 Paisa Re. 1/- Re. 1/-

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Value Added Services:

UFONE TARIFF (RS.) TARIFF

International SMS Rs 1.5/-

Ring tones Rs 2/-

MMS Per Incoming / Outgoing Message Rs 5/- (per 64kb)

GPRS Per Megabyte Rs 15/-

Nationwide Roaming Free

SMS Bundle Offer

PACKAGES SUBSCRIPTION CHARGE/SMS CHARGE/SMS VALIDITY SMS 'SUB'

TOPackage 1 75 1000 7.5 paisa 30 days 601

Package 2 50 500 10 paisa 30 days 602

Package 3 25 165 15 paisa 15 days 603

Package 4 150 Unlimited Fair use policy 30 days 604

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Competitors pricing: (prepaid)

Mobilink (key competitor):

Mobilink started GPRS services with RS. 500/month. Mobilink also started 3 friend and family number with a charge of 2.25/min.

JAZZJazz one

Every Mobilink Number is your Friends & Family number

DetailsRates

Calls to any Mobilink numberRs. 1.00 / minute

Calls to all mobile networks & Landline numbers in PakistanRs. 1.60 / minute

SMS (to Mobilink)Rs. 1.00 / SMS

SMS (to other networks/landline)Rs. 1.50 / SMS

Jazz BudgetAb baat karo... aur karte he jao

DetailsRates

Happy Hour to all Mobilink numbersRs. 0.40 / 30 seconds

Calls to 3 F&F Mobilink numbersRs. 0.75 / 30 sec

Calls to any Mobilink numberRs. 0.90 / 30 sec

Calls to all mobile networks & Landline numbers in PakistanRs. 0.99 / 30 sec

SMS (Jazz to Mobilink)Rs. 1.00 / SMS

SMS (Jazz to other networks)Rs. 1.50 / SMS

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Bolo SMSBolo SMS

Ab bolo aur bhaijo!

DetailsRates

Bolo SMS Outgoing (Mobilink)Rs. 2 + tax per 2 IVR minutes

Bolo SMS Outgoing (Any other network)Rs. 3 + tax per 2 IVR minutes

Bolo SMS Receiving directlyFree

Bolo SMS Receiving later

Rs. 1 + tax per 2IVR

Minutes (for Mobilink

Subscribers on

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ly).

Other competitors:

Warid:Airtime

Airtime : Zem 1 Second Friends & Family

0.02 paisaZem 30 Seconds Friends & Family

0.45 paisaZem 60 Seconds Friends & Family 0.75 paisa

InfiNite Craze: unlimited free calls Daily subscription of Rs.1050 Free Minutes: between 9 a.m. and 5 p.m.daily charge of Rs 15

SMS:Zem 1 Second Friends & Family

0.50 paisaZem 30 Seconds Friends & Family

0.50 paisaZem 60 Seconds Friends & Family 0.50 paisa

Telenor:

TalkshawkA1 package: Telenor to TelenorRs. 1/min

Telenor to other networkRs. 1.40/min

Telenor to PTCLRs. 1.40/minHar second: Friends and Family3 paisa (per second)

Telenor to Telenor4 paisa (per second)

Telenor to other network5 paisa (per second)30 second: To another Telenor numberRs. 0.75

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To any other mobile networkRs. 0.95

Friends and Family Telenor-TelenorRs. 0.45Har minute: Friends and Family Telenor-TelenorRs. 1/min

Telenor to TelenorRs. 2/min

Telenor to other networkRs. 2/minDjuiceSMS Package Free unlimited SMS to any numberRs.70

SMS Chapar Pharr kNo. of SMS Charges

90 15285 40650 80

Z O ng: Aik second package: Make call for

just 4 paisa per second

Free package: For the first time in Pakistan you can make free calls for life

12 aany ka package: Talk for an entire hour - any hour, for only Rs.4.99and for the first time in Pakistan you can change the hour everyday

Suggested product and pricing strategy:

Introduction of CDMA technology

CDMA: stands for C ode D ivision M ultiple A ccess . The world is demanding more from wireless communication technologies than ever before as more people around the world are subscribing to wireless. CDMA consistently provides better capacity for voice and data communications

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than other commercial mobile technologies both data and voice are separated from signals using codes and then transmitted using a wide frequency range. Because of this, there are more space left for data transfer (this was one of the reasons why CDMA is the preferred technology for the 3G generation, which is broadband access and the use of big multimedia messages). 14% of the worldwide market goes to CDMA.

CDMA Worldwide Subscriber Growth Analysis: One Year September 2001 to September 2002

Worldwide Increase: 31,716,000

 Asia

PacificNorth

AmericaCaribbean &

Latin America

Europe, Middle East &

Africa

Subscriber Number Increases from Sept 01 - Sept 02

8,500,000 14,996,000 7,295,000 925,000

Pricing: Rs. 300Islamabad: limited franchise Product: plastic casing

First time in Pakistan we are introducing CDMA technology. We are offering high prices as in this category people are trendy and more focused to new trends. At first we are launching it in Islamabad. Our packing of is more attractive than GSM packing. We are first time offering Boot let with this CDMA.

DISTRIBUTION:

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Distribution channels of Ufone products and services are through Sales and Customer Service centers, Retailers and Franchise. For the expansion of market, Ufone can improve and can increase the number of its Customer Service Centers and Franchises. Current distribution channels are compatible with the positioning strategy, “Ufone, Tum He Tou Ho”.

Distribution channels of competitors :

Franchises. Service centers. Retail outlets.

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Customer care and service centers are:

U fone Customer Care Center

 Sr#

1

2

3

4

5

6

7

8

9

10

11

12

13

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Location

Islamabad (Head Office)

Rawalpindi (Commercial Center)

Rawalpindi (Saddar)

Peshawar

Jhelum

Gujranwala

Lahore-Gulberg

 Sialkot

Multan

Faisalabad

Hyderabad

Quetta

Karachi-Shaheed e  Millat

Peshawar-Cantt

Address

13-B, F-7 Markaz, Jinnah Super, Islamabad

Shehrbaz Business Center ,4-B Block, Commercial  Center

Bank Road, Saddar ,Rawalpindi

I-E, Fakhar-e- Alam Road, Peshawar Cantt

Opposite Wheat Depot, Main G.T. Road,  Mujahidabad, Jhelum

Ufone Zonal Office, Main G.T. Road, Near Ghalla  Mandi, Gujranwala

15, S, Gulberg II, Lahore

Plot # 2 Bungalow# 109, Aziz Shaheed Road, Sadder Bazar, Sialkot, Cantt.

32-Multan Arcade, Katchery Road, Multan

27-Chenab Market, Madina Town, Faisalabad

Plot # B-15/9, Railway Employee Coperative  Housing Society, Auto Bhan Road, Taluka  Latifabad Hyderabad

Ground Floor, Institute of Engineer Building,  Zarghoon Road, Quetta

Plot # 02, Block # III, MSGPSCHS (Moalimabad), Shaheed-e-Millat Road, Near Medicare Clinic, Karachi.

1-E, Fakhar-e-Alam Road, Peshawar Cantt,  Peshawar

International Coverage:

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Ufone provides International Roaming facility with more than 150 international operators across 79 countries

COMMUNICATION:

Proper communication for the promotion of every product is necessary. The Ufone strategy is too aware its target as well its potential customers. The success of every brand or product is through communication by proper channel. Ufone communicates its products through Advertisements (News papers, T.V, Radio, and Billboards). Mobilink advertises through media for the purpose of knowledge.

Ufone is conveying the message to its target audience is “It’s all about U”.

T.V: PTV, Geo, ATV, ARY Digital, Hum TV, AAJ, Indus.Ufone advertises its products 2 times after every hour for 30-45 seconds.

News papers: Express, Jung, The News, Daily Times.Advertisements of Ufone products in News papers, maximum 16-17 times per month.

Others: Internet, billboards.

Communication budget (for a Year)

Time Brand PTV Home Geo ARY Digital Aaj TV Hum TV ATV Total

18:00-18:15 60,000 40,000 50,000 50,000 45,000 35,000 280000

21:00-21:15 132,226 75,000 90,000 80,000 70,000 85,000 532226

23:00-23:15 35,000 50,000 50,000 60,000 25,000 40,000 260000

Total 227,226 165,000 190,000 190,000 140,000 160,000 1072226

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Frequency (times per year) 30 20 10 10 20 30

Total cost 6816780 3300000 1900000 1900000 2800000 4800000 21516780

Media Consumption PatternMorning Afternoon Evening Night Midnight

NightTV 25% 23% 42% 57% 26%

Newspapers 38% 12% 4% 4% 1%

Internet 6% 18% 16% 19% 14%

Outdoor 6% 11% 14% 6% 3%

None 19% 27% 17% 8% 48%

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0%

10%

20%

30%

40%

50%

60%

Mor

ning

Aft

erno

on

Even

ing

Nig

htM

idni

ght Nig

ht

TV

New spapers

Internet

Outdoor

None

The above graph represents the media consumption patterns throughout the day. It reflects that 38% people start their day by reading the newspaper while 25% from TV and rest of the people spend their time on radio, internet and outdoor. We also find 19% of people who are not exposed to any medium in the morning.

Newspaper readership patterns i.e. 38%, 12%, 4%, 4% and 1%, we find that people usually read the newspaper in the morning while only few of them read it at other times of the day.

Then the whole day is dominated by TV as 23%, 42%, 57% and 26% of people are exposed to TV in afternoon, evening, night and mid-night respectively. Where internet is the second most consumed medium by 18%, 16%, 19% and 14% of

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people while radio is taking only 10%, 8%, 7% and 8% of the listeners throughout the day.

If we see media patterns at mid-night, then it is noticed that almost 48% of people are not using any medium at that time of night whereas 26% are exposed to TV and internet consumption settles at 14%.

Approximate communication budget of Ufone is 2.1 million.

MARKET BUDGET:

Ufone has finalized a huge network expansion contract amounting to about USD 550 million, which will enhance the subscriber’s capacity by 10 million. This is the largest ever expansion project of Ufone.

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.

SALES FORECAST:

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Sales Forecast of the SIM’s of Ufone Prepay is as under:

Average price of SIM’sCities Prices (Rs.)

Karachi 200Islamabad 150

Lahore 130Average Price/sim 160

Month SIM’s Sales per month

Average Price per sim

Revenue (Rs.)

January 300 160 48000February 300 160 48000March 275 160 44000April 270 160 43200May 260 160 41600June 265 160 42400July 255 160 40800

August 250 160 40000September 230 160 36800

October 210 160 33600November 200 160 32000December 250 160 40000

Average total Sales Forecast for a Year

------------------- ---------------------- 490400

PROBLEMS:

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According to us we found some problems that are as under:

Ufone has no international coverage, as compared to its major competitor.

There is a great change in consumer’s tastes w.r.t. SMS packages, as consumers divert their attention to new packages launched by the competitors.

Ufone has slow market growth as compared to Mobilink and Warid.

The political instability is also a hurdle in the growth of Ufone.

Competition of prices is increasing day by day.

RECOMMENDATIONS:

According to the above problems faced by Ufone there are some recommendations that should be followed by Ufone:

As Ufone is the second largest cellular company in Pakistan with market share of 21%, it should change its polices to increase its share to become a successful cellular company internationally.

They should have to develop their Human Resource policies to compete with the competitors.

Ufone should introduce new packages and enhance its old packages, so that customers show their loyalty with the products of Ufone.

They should maintain their prices as there is a stiff competition among the cellular companies.

They should have to expand their foreign market. They should have to adopt new technology, as

innovation is key to success. If there are any opportunities existing in the market,

they must have to exploit them before their competitors do that.

Ufone should have to maintain its polices to face the political instabilities.

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Note:We have tried our best to provide you all the information relevant to the project, but some information related to company is confidential which the Management of Ufone denied to provide us.

CONCLUSION:

A key ingredient of the market plan is insightful, creative marketing strategies and plans that can guide marketing activities. Developing the right marketing strategy requires a blend of discipline and flexibility. Firms must stick to a strategy but must also find new ways to constantly improve it. Marketing plan also requires a clear understanding of how marketing works. Our group has done the project of developing marketing plan on the company Ufone of which 26% of shares were acquired by Emirates Telecommunication Corporation (Etisalat) . Ufone is the Pakistan’s 2nd largest cellular company with a market share of 21% and its revenue and after-tax profit is 87% and 54% respectively, for the current year. It has network coverage in more than 3475 locations and across all major highways of the country. Its products are postpaid and prepay, and services includes Uwon, Utone, Awaz SMS, Trivia Quiz, and Quran on mobile, U Talk, Call Block Service. Etc.

SIM’s of Ufone are manufactured abroad (Malaysia, Korea, China, Singapore) and imported in Pakistan. Ufone is subsidiary of PTCL and is currently providing quality services across Pakistan. It has 3 million subscribers and still growing. This year the sector grew by 80% whereas average growth rate in last 4 years is more than 100%. In April 2008 the Ufone subscribers were 17,539,457.its major competitor is Mobilink, Telenor, Warid, and ZOng... Weaknesses should convert into strengths, and threats into opportunities. Consumer behavior is always variety seeking in every product. Price, Quality, New promotion, Coverage are the factors that influence the buyer to make purchase decision. Marketing goals are set in terms of sales, revenue, profits, market share, products and brand image. Segmentation of

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Ufone is on the basis of age, and it targets the youth segment, Positioning strategy of Ufone is “it’s all about U”. Distribution channels of Ufone products and services are through Sales and Customer Service centers, Retailers and Franchise. Approximate sales forecast per year is 4.9 million.Ufone’s management has a great potential to take the company at no. 1 position in telecomm sector in Pakistan.

We would like to end this Report in words of Mr. Kashef Maqbool (Assistant Manager Marketing, Islamabad):

“SUCCESS IS NOT SOME THING TO WAIT FOR, BUT SUCCESS IS SOMETHING TO WORK FOR”

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