marketing strategies of ufone marketing essay

7/25/2019 Marketing Strategies of Ufone Marketing Essay

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Marketing Strategies of UfoneMarketing EssayPTML is a subsidiary of PTCL (Pakistan Telecom Company Limited), te largest operator in

Pakistan! PTML "as establised to operate cellular teleponyTe company commenced its

operations under te brand name of Ufone from #slamabad on $anuary %& %''! uring te year, as

a conse*uence of PTCL+s priati-ation, %./ of its sares "ere ac*uired by Emirates

Telecommunication Corporation (Etisalat)! 0eing part of PTCL, te management of Ufone as also

been anded oer to Etisalat!

Since its inception, Ufone as focused on te people of Pakistan, empo"ering tem "it te most

releant communication modes and serices tat enable tem to do a lot more tan 1ust talk, at a

price tat suits tem te most! 2ttp344"""!ufone!com4about!asp52

U678E came in te market "en it "as mainly captured by Mobilink and #nsta7ne! #t "as a difficult

task to become a part of suc a market in a country like Pakistan "ere people "ere not a"are

about mobile pones and it "as a status symbol at tat time! Ufone canged te "ole scenario and

as soon as it came in te market it proided "it ery ceap mobile connection and calling rates

"ic "ere offered neiter by M70#L#89 nor by #nsta7ne!

:long "it te claim of lo"est call rates, clear sound and best net"ork, Ufone offered its customers

simplified tariffs "it no idden carges! ;it a strong and uni*uely umorous communication

direction tat as no" become Ufone+s signature across all adertising media, Ufone gies its

customers many reasons to smile!

uring te year $uly %''< to $une %''., furter e5panded its coerage and as added ne" cities

and ig"ays! Ufone as net"ork coerage in more tan =S @ 0lack0erry >oaming coerage aailable "it more tan


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Brand

Ufone mainly comprises of t"o brands i!e! te Prepaid and te Postpaid! ;ile keeping its tradition

of being te trend setter in te industry, Ufone canged te image of mobile pones from a lu5ury

only affordable by te elite, to a necessity affordable by te common man! Since its inception, Ufoneas positioned its brand for masses!

#n keeping "it te upcoming competition and market dynamics, Ufone increased its focus on te

yout segment ("ic comprises


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Mobile financial transaction platforms are rapidly emerging around te "orld suc platforms arness

te intrinsically lo"er costs of mobile banking platforms compared to traditional banks and e5ploit te

increasingly "ide diffusion of mobile telepones across all socioeconomic groups and geograpical

areas!

1'U" '" $"(1%"$

Ufone "elcomes to indulge in te true essence of te term on te go! Tey beliee in proiding

customers "it as muc conenience as tey beliee perfect! ;it Ufone easy to use Aalue :dded

Serices, customers can pack tere entire e5ternal enironment rigt in tere cell pone!

Ufone al"ays says 2#t+s all about UF2 giing priority to its customers and giing tem te E5perience

of complete conenience "it Airtual Priate 8et"ork, Call Management, Missed Call 8otification,

Ponebook Saer and a ost of #nfotainment and Entertainment serices rigt 7n te cell pone!

7n a fligtG Can+t afford to miss out on callsG ;it Ufone+s Missed Call 8otification, customer+s

neer loose track of tere missed calls! Customers sould Stop "orrying about cell pone getting

lost! 0ackup of all contacts is no" possible "it Ufone+s Ponebook Saer and regaining any lost

information directly from tere serer is ery easy!

Creating an account on Ufone "ebsite ("""!ufone!com), getting access to a ost of personali-ed

online serices like :ddress 0ook, Calendar @ Planner, P7P :lerts, Email :ddress as "ell as

#nfotainment Serices allo"s customers to subscribe "it daily oroscope, *uotes, 1okes and muc

more! :long "it all tese serices, Ufone also offers ?P>S, MMS and ;:P access to enance

mobile internet e5perience!

http://www.ufone.com/mobie4products.asp

x

%!F()'*%! &'*,"(%!&

#nformation gatering "as te most essential part of te "ole actiity! To ac*uire releant material,

arious sources of information "ere used! ue to te e5tensie amount of *uality informationaailable online, most of te information gatering "as done from te internet but oter sources

suc as mentioned belo" also elped to analy-e te strategies of Ufone!


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%$* F $U("$ F %!F()'*%!

&'*,"(%!&:

#8TE>8ET

U678E SE>A#CE CE8T>E

0779S

8E;S P:PE>S

TELEA#S#78

%!*"(!"*#n today+s "orld "at eer information you "ant, it is all easily aailable on te internet! 6or my

pro1ect it "as a difficult task 0ecause of te e5tensie information aailable to me, i ad to go

troug an entire selection process in "ic # ad to filter all te information and s*uee-e out te

important points to include in my pro1ect as per te re*uirement of te pro1ect!

&&":

7n te internet # searced """!google!com "ic is one of te biggest searc "ebs! 6rom ere #got good information about Ufone marketing strategies troug different links "ic elped me

significantly to kno" and understand te marketing strategies of Ufone in a better "ay! #t elped to

get access to different "ebsites suc as """!propakistani!com from "ere # "as able to get

information about te number of customers of telecommunication industry

UF!" +"B$%*":

T7 learn about Ufone, its "ebsite ("""!ufone!com) "as a fine source aailable! #t "as a good

source of information for me to kno" about "at Ufone "as and proided information about its

brand, serices and different alue added serices for its customers! Ufone+s "ebsite also gies an

idea about its marketing strategy! :s it is ery colorful and all te rates, serices and ne" offers are

prominently so"n on te main page, it gies an idea about its marketing strategies!


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*' +"B$%*":

P:9#ST:8 TELEC7MMU8#C:T#78 :UTH7>#TB "eb site ("""!pta!go!pk) "as anoter source of

information as it proided "it rates of oter mobile net"orks! Tose rates "ere used in comparing

"it Ufone rates during te analysis done!

UF!" $"(1%" "!*(":

: U678E serice centre located near my residence "as a good source of information! # got all te

information related to brands of Ufone! #t mainly consists of preDpaid, postDpaid, blackberry and

?P>S! #t "as a good source to kno" about all te packages tat Ufone proides to its customers

using different brands! 6or preDpaid and postpaid tere "ere a "ide ariety of packages offered!

Tere "ere different packages for local and international calling and tere "ere also many packages

offered for sort message serice (SMS)! :ll tese tariffs "ere a good source of information!

B$:

>elated to te marketing strategies # consulted my different :CC: books tat elped me in reising

all te tecni*ues and models used in formulating marketing strategies of an organi-ation and

analy-ing its market sare! #t became a little easier after generally oer going te books of 6TC and

P0P to understand, analy-e and e5amine te marketing strategies of Ufone! Te books tat # used

are as follo"s

P 0US#8ESS :8:LBS#S P0P

P 0US#8ESS :8:LBS#S 6TC

!"+$'"($:

Ufone adertisements in ne"s papers elped me in te analysis! #ts adertisements in different ne"s

papers elped in identifying its strategies its tactics and its marketing policies!

:part from Ufone, een its competitors adertisements "ere seen in te leading ne"s papers of

P:9#ST:8 suc as :;8, THE 8:T#78, $U8?(ne"s paper in Urdu language) etc!

Mostly ne"s papers are used by telecommunication company to inform about tere ne" packages

and rates as a large number of P:9#ST:8 population reads ne"s paper daily!

TELEA#S#783


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7n teleision, mostly during cricket matces so"ed by ?E7 SUPE>, te first sports cannel in

P:9#ST:8, a lot of Ufone adertisements are seen! :noter fact about tese adertisements is tat

tree to four different commercial made by Ufone are been run "ic coers all types of consumers!

: brief idea of Ufone montly e5penditure of its adertisements on teleision "ill be found in te

researc part of tis report!

L#M#T:T#78S #8 ?:THE>#8?#867>M:T#783

:s te topic is related to marketing strategies of a company, it is "ell kno"n tat no company

suggests or publises its marketing insigts to public aailable domains i!e! on "ebsites or in ne"s

papers as most of te marketing information are a igly confidential part and sould be kept as a

secret!

Te situation gets "orst in tis case especially because in P:9#ST:8, telecommunication is a igly

competitie market so Ufone being a part of suc a market is ery careful tat none of its confidential

information is leaked to te competitors, because in suc a market eery competitor is looking to

grab opportunities to beat te oter company, increase its market sare and be te best!

ETH#C:L L#M#T:T#78S38one of te information used in tis report is copied or used "itout te permission of te o"ner!

>eleant and real references are proided under eery information in te report!

:#MS :8 70$ECT#AES3Te ob1ectie of tis researc and analysis pro1ect is to analy-e te marketing strategies of U678E!

# aim to do tis by using different models "ic can be used to formulate asses and ealuate

different marketing strategies of any organi-ation! :s to gie a clearer picture of te company+s

marketing strategies, # "ill also incorporate in te pro1ect a comparatie analysis of te marketing

strategies of some oter companies in te telecommunication industry of P:9#ST:8! Te main

models tat # "ill be using in tis report are as follo"s3

) M:>9ET#8? M#I

%) S;7T :8:LBS#S

) P7>TE> 6#AE 67>CES

Marketing mi5 includes =P+S of marketing "ic is used to analy-e bot internal and e5ternal

information of an organi-ation! #t includes PE7PLE, PHBS#C:L E8A#>78ME8T, P>7CESS,

P>7UCTS, P>#C#8?, P>7M7T#78 and PL:CE! #t coers ma1or areas to analy-e te strategies

of an organi-ation!


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S;7T analysis are te internal (strengts and "eaknesses) and e5ternal (opportunities and treats)

analysis of an organi-ation! ;it te elp of S;7T analysis an organi-ation can discern its

strengts, eradicate "eaknesses, "ork on opportunities and try to minimi-e and remoe treats!

P7>TE> 6#AE 67>CES are te main e5ternal analysis "ic "ill elp me in identifying all te

e5ternal circumstances for Ufone! P7>TE> 6#AE 67>CES includes 0:>?:#8#8? P7;E> 76SUPPL#E>, 0:>?:#8#8? P7;E> 76 0UBE>, TH>E:TS 76 : 8E; E8T>:8T, TH>E:TS 76 :

SU0ST#TUTE :8 C7MPET#T#784>#A:L>B! Troug Porter forces all te e5ternal tribulations,

adantages and disadantages faced by Ufone can be identified!

: comparatie analysis of marketing strategies of Ufone "it its competitor+s strategies suc as

Mobilink Telenor ;arid and Jong "ill also be proided! # "ould try to analy-e and differentiate te

different strategies tat are used by all tese telecommunication companies in P:9#ST:8

# "ill also igligt different segments of market targeted by Ufone "ic ae elped it in gaining

iger market sare tan its competitors! Some negaties in te marketing strategy of Ufone "ill

also be underlined and o" an allDround psycoanalysis of "at tey "ere, o" tey progressed

and "ere tey aim to reac "ill be analy-ed in tis report!

>ESE:>CH M:>9ET#8?Marketing strategy is used by an organi-ation for focusing on organi-ation+s energy and its use of

resources on a set plan leading to"ards increase in sales and dominance in te market! : marketing

strategy combines promotion, pricing, distribution, product deelopment, relationsip management

and oter elements identifying and e5plaining firm+s marketing goals and also e5plains "ays to

aciee it "itin a stated timeframe! Marketing strategy determines te coice of target market

segments, positioning, marketing mi5, and allocation of resources! : key component of marketing

strategy is often to keep marketing in line "it a company+s oerarcing mission statement!

#MP7>T:8CE 76 M:>9ET#8?ST>:TE?#ES 67> U678E3#n te recent times, te competition leel in P:9#ST:8 in te telecommunication industry as raised

a lot! Terefore to surie in te market it is not 1ust important for Ufone but also for all oter telecom

companies to ae strong marketing and adertisements in order to gro" tere market sare in tis

progressing and gro"ing market

M7ELS USE T7 EA:LU:TE M:>9ET#8?ST>:TE?#ES 76 U678E3Te first model tat # ae used to analy-e te marketing strategies of Ufone "ill be Marketing mi5!


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Marketing mi53#t comprises of =P+S of marketing! Tey are as follo"s

PE7PLE3#n tis part of te strategy, different segments and class of people "ill be discussed! 6rom a

telecommunication point of ie", te follo"ing "ill be normally being large segments of people to

target!

Corporate Class

Entrepreneurs (0usiness class)

;orking class

Bout (ageing bet"een < @ %%)

?oernment organi-ations

Tese are mainly < segments in "ic mobile users could be diided! :s for Ufone, at first it tried to

focus on te common man suc as te labor class to gie an idea and concept tat mobile pone is

affordable for all but after some time it took a strategic sift and no" it mainly focuses on te yout

of Pakistan! Troug its adertisements it tries to attract youngsters, scool going and college going

cro"d!

7n te oter and, it does not ae a lot to offer people from professional field and it neer spends

eaily on its adertisements for corporate class or business class!

Te main competitors of Ufone in tis regard are Telenor and Jong "ic is a cina mobile

subsidiary in P:9#ST:8! Te adertisements of Telenor are also ery colorful and attractie for te

yout and Jong from te ery beginning came "it te idea of attracting yout of te country!

% D P>#CECustomers see pricing as the heart of selecting a brand. Cellular service providers

are facing intense price competition in present-day market.

Price has always been the core dierentiation of Ufone. Ufone is the one who around

a year back oered the cheapest rates on-network and o-network. Now it's a

strong ght between !ong and Ufone and new rates keep on publishing every

month and at times every week.

Ufone strategi"es to capture the e#isting pricing needs of its customers and use it

well on occasional or timely basis. $or e#ample% Ufone oered very good call rates

on international calls in &id day's thus compelling people to use Ufone for

international calling.


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t also oered hourly call rates in (amadan when people were least likely to avail

the oer that much that it might prove unprotable for Ufone as in (amadan people

in P)*+,)N mostly fast and mostly people won't talk for hours during their fasting

but U$N& made people talk with its e#tremely special oers and packages.

t was a fantastic strategy to beautify the brand image in term of pricing in

customer's minds as well as remain protable in doing so. Ufone follows marketpenetration pricing strategy and dynamic pricing strategy to meet the customer

needs and ever changing price competition. Ufone also provides with the best ++

rates. ,hey are as follows/

P)C*)0& 1

123++

(+ 435,)67N,8

P)C*)0& 4

399++

(+ 395,)67N,8

P)C*)0& :

1999++

(+ ;35,)67N,8

P)C*)0& ,&? ++

(+ :5,)67?)@

Ufone provides the cheapest messages rates in Pakistan. ,he other company that is

close to Ufone is ,elenor. ts brand dAuice provides its customers with the following

packages/

P)C*)0& 1

1999++

(+ =.;25,)67B&&*

P)C*)0& 4

:399++

(+ 45,)67B&&*


10/19

P)C*)0& :

;399++

(+ 25,)67B&&*

P)C*)0& & even comes to be

a tough competitor as it oers services keeping dierent types of users in mind.

!N0 has the package best suited for customer reFuirements while keeping the

aordability in check.

?aily ++ P)C*)0&+

399 ++ G 199 + for whole day only for (s. :.

n e#ceeding 399 ++% additional ++ to be charged as per tari plan

,his bundle would be valid for 1 day only H n order to re-subscribe your number

should be active and you must have suIcient balance available

Beekly Eundle

1999 ++ for whole week only for (s. 19

n e#ceeding 1999 ++% additional ++ to be charged as per tari plan

,his bundle would be valid for ; days only

n order to re-subscribe your number should be active and you must have suIcient

balance available

$ortnightly Eundle

399 ++ 7 day for 13 days for only (s. 39

n e#ceeding 399 ++ a day% additional ++ to be charged as per tari plan

,his oer would be valid for 13 days onlyn order to re-subscribe your number should be active and you must have suIcient

balance available

onthly Eundle


11/19

Tis offer "ould be alid for ' days only

D PL:CEPlace plays a ery important part in te distribution and promotion of serices!

Competitors of Ufone are seeking to penetrate into places "ere oters aen+t reaced! :ll cellular

serice proider companies in Pakistan are trying tere best to drastically "iden teir net"ork @

coerage in eery area! Mobilink as tis edge in place e5cellence because it is te pioneer in

cellular teleponic field!

Ufone strategi-e to "iden its coerage to all places in Pakistan in order to meet te re*uirements of

its increasing customer base! 8o" Ufone is eading from cities to remote nortern areas in

e5panding its net"ork!

D P>7M7T#78Ufone beliees in #ntegrated Marketing Communication "ic is a carefully blended mi5 of promotion

tools! Ufone employ different marketing actiities and cannels to communicate and delier alue to

customer! Tese actiities are coordinated to proide ma5imum communication output! Tese

communication cannels includes :dertising, sales promotion, public relations, direct marketing @

personal selling!

Ufone strategi-es to carry out promotion in order to increase its market sare!

:dertising3D

#t if often noticed tat Ufone mainly makes ne" ads "en it as to inform te customers about ne"serices! :part from tat it eaily promotes its brands and products troug its adertisements on

teleision, radio and ne"s papers seeking to persuade people to purcase teir serice or s"itc to

teir connection from oter mobile net"ork! #t mainly adertises for preDpaid customers but

occasionally it also adertises its oter brands suc as postDpaid, blackberry and ?P>S!

:dertising 0udget3D

Ufone is a eay spender on adertising in electronic media as "ell as oter media! Tey are

deeloping and playing ne" adertisements on electronic media not een "it a mont+s gap or so!

: single Ufone adertisement played


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Sales promotions are sort term incenties to encourage te purcase or sale of a product or

serice!

Ufone carries out actiities to boost its sales! #t follo"s all four of te promotion budgeting metods

ia affordable metod, percentage of sales metod, competitie parity metod and ob1ectie @ task

metod!

Ufone carried out contest for cricket talent unt in te year %''%! : reno"ned Pakistani cricketer

Soaib :ktar "as used as patron for tis contest! Ho"eer tis contest didn+t do muc good to

Ufone+s image or sales! 0ut Ufone olds future plans to carry out suc actiities in more effectie

and profitable "ays!

:ll te cellular serices are no" offering premiums for teir customers! Similarly tis premium is also

offered by Ufone "en a customer doesn+t use is4er mobile connection for up to D. monts!

Premium is gien in te form of e5tra credit balance deliered to customer+s numbers for free

Ufone also offered free trip to ubai! #t "as Ufone+s first Eid offer! Eery time a user makes any

international call of < minutes or longer tan < minutes, it enters te lucky dra" to "in a return ticketto ubai! Te more calls made by users, te more cance tey ad to "in!

Public >elations3D

Ufone as al"ays tried to maintain its public relations! #t tries to keep all its customers appy by

sending greeting messages on all occasions suc as >am-an, Eid and oter oly and important

days in te country! #t as also launced its 2Ha11 ?uide2 serice!

irect Marketing3D

Ufone employ onDroad umbrella francises "ere tey directly market and sell teir connections and

Sims! :part from tat in many different cities of P:9#ST:8, Ufone as also made it posters on autoricksa"s "ic are a uni*ue "ay of direct marketing!

Ufone as intensie promotion in cities, but it is no" improing upon its promotion in rural areas as

"ell!

< D P>7UCTSUfone offers a ariety of products and serices to its customers! #n eac product it offers a ariety of

different packages for its different segment of users! Te follo"ing are te different products of

Ufone3D

Post paid

PreDpaid

0lackberry

?P>S


13/19

Te most "idely used Ufone brand is te PreDpaid brand troug "ic it targets its main segment

customers tat is te yout of P:9#ST:8! #t offers a ariety of serices for its pre paid users suc

as3D

#nternal E5cess

7nline 0illing Payment

Po"er S#M

;:P

#nternational >oaming

Aoice Mail

Call Management

Messaging

(:ll information taken from Ufone customer serice center)

7n te oter and it also proides a lot of different packages for calls and sort message serice!

Tese are as follo"s3D

Tension 6ree Package

Ufone ourly Package

Super ourly Package

< ka M:T#78 >E?:>#8? S7ME P:C9:?ES3D

. D PHBS#C:L EA#E8CE3D#t is a ery important aspect of marketing! #n tis part te most important ting is customer serice!

7ne of te e5amples of pysical eidence of customer serice tat "e get is billing! Ufone as aery effectie and easy process of billing for its postDpaid customers! #t can be done troug credit

cards, by using a scratc card, or by pysically going to te outlets of Ufone "ic are no" in big

numbers!

6or preDpaid customers it is e5tremely easy to get tere recarge done! #t can be done by

purcasing cards "it sealed numbers of >s!'',


14/19

#t also as a customer serice call centre "ere customers can call %ours to gain any information

about Ufone packages or to report any problem tat tey are going troug!

= D P>7CESS6or any organi-ation it is e5tremely important to kno" "at segment of customers tey "ant to

target, "at are tere aim and ob1ectie and "at tey "ant to aciee! #n order to aciee "at

tey desire tey "ill tan make a process to attract people from tat particular segment of market!

Eac organi-ation as a different "ay and tinking "it "ic tey formulate a process to market

teir product! #n case of Ufone it is ery eident tat troug tere customer gatering process tey

are trying to aciee ig market sare amongst yout of P:9#ST:8! Tis is currently te most

gro"ing market segment in telecommunication as all te youngsters as described aboe are

priileged to use lo" rate offers to talk for ours and message as muc as tey "ant!

:part from normal adertisements and marketing strategies, Ufone also adertises on te internet

troug """!facebook!com (a "ebsite on internet used mostly by teen agers to enance tere

friends circle and sare tere personal information "it oters), ne"s papers, maga-ines etc and try

to gater as muc market sare as tey can troug tese processes! #t also puts up its stalls in big

carnials, tries a lot of oter processes to market its product and to create a"areness of its products

eery "ere!

S;7T :8:LBS#S3D

ST>E8?THSStrengts include internal capabilities, resources, and optimistic situational factors tat may elp te

company to proide its customers and aciee its goals and ob1ecties!

Te strengts of Ufone are as follo"s3D

Ufone+s differentiation is its biggest strengt! Ufone offers lo"est offDnet call rates tat differentiate it

from its competitors!

Ufone represents PTCL name as it is te subsidiary of PTCL!

Ufone packages for yout are its ma1or strengt and a big source of income!

Ufone is offering more and better Aalue :dded Serices (A:S) tan its competitors i!e! Ufone+s

;alkie talkie!

Ufone as te most promising and attractie :TL (:boe te Line) actiities!

;E:98ESSES


15/19

;eaknesses include internal limitations and negatie situational factors tat may interfere "it te

company+s performance!

Te "eaknesses of Ufone are as follo"s3D

:s Ufone is a subsidiary of PTCL, "ic "as preiously under goernment management, Ufone still

as a sado" of a goernment organi-ation! #t is also igly dependable on PTCL!

#t as a "eak marketing strategy to attract postDpaid clientele and tey are more dependent on preD

paid customers in spite of te fact tat Ufone ma1or reenue arises from its PostDpaid customers!

Tey often get carried a"ay "it tere aggressie marketing strategies!

7PP7>TU8#T#ES7pportunities are faorable factors or trends in te e5ternal enironment tat te company may be

able to e5ploit to its adantage!

Ufone as follo"ing opportunities in its "ay3D

Ufone+s biggest opportunity lying aead in near future is te pase of conersion of teir ?SM

tecnology in to ? (satellite based) tecnology

#t can furter target te corporate segment in P:9#ST:8!

Ufone as te opportunity of gro"ing its customer base due to increasing trend of using mobile

pones!

Ufone as te opportunity to "in te customers of its competitors by proiding tem superior

serices on lo"er price!

Ufone as te opportunity tat it is pioneer in soutern Pun1ab "ere it can promote itself and

become market leader on te basis of tis ery fact!

Ufone can astonis its customers by introducing 2U678E 9#7S92! Tese "ill be macines like :TM

and troug tis serice Ufone customers "ill be facilitated to load balance in tere mobile 1ust like

people take out money from :TM!

Ufone still as room for te improement of its net"ork coerage in comparison to Te Market ?iant

2M70#L#892

TH>E:TSTreats are unfaorable e5ternal factors or trends tat may present callenges to performance!

Ufone is facing4about to face te follo"ing treats3D

Ufone+s biggest opportunity is its biggest treat as "ell! Te pase of its conersion of ?SM

tecnology to ? tecnology can be a treat for it if not carried out properly!


16/19

:noter treat to Ufone is it aggressie marketing strategy "ic some times its back on it!

Te boosting customer base of ;arid and Jong is also a big treat for Ufone as Telenor as already

surpassed Ufone in terms of capturing market sare!

Te decreasing economy rates, instability in Pakistan and "orld "ide recession are a big treat for

all businesses in Pakistan including Ufone!

M#CH:EL P7>TE>+S 6#AE 67>CES3DPorter describes fie forces as to "ere an organi-ation stands in te market and "at problems are

it going to face from its customers and suppliers! Ho" muc beind is it from its competitors, "at

substitutes are aailable in te market and is tere a possibility of ne" entrant in te market!

0:>?:#8#8? P7;E> 76 CUST7ME>3D:s far as telecommunication industry is concerned, tis is one area "ere customers ae a lot of

po"er! #n all gro"ing and progressing countries, tere are a number of different telecommunication

serice proiders aailable!

Similarly in P:9#ST:8 apart from Ufone, tere is Mobilink, Telenor, ;arid and Jong! ;it suc a

"ide range of different telecommunications serices aailable, customers ae a good reason to get

te best out of te companies tat is te best products, best serices "ic also include after sales

serice! Talking about my e5perience # "as a user of ;arid but 1ust because of one small customer

serice issue and strong Ufone adertisement, # "as coninced to s"itc to Ufone!

>ecently a ne" serice, Mobile 8et"ork Portability (M8P) as been started by Ufone and its

competitors! :ccording to tis serice te user of any oter mobile net"ork "itout canging is4er

number can s"itc on to any oter mobile net"ork! Ufone offers free minutes messages to attract

consumers to"ards canging tere mobile net"ork troug M8P but similarly its competitors

specially Telenor and Jong are also up to te task and are giing similar offers!

7ne more ting faorable for customers is tat te cost of s"itcing is ery less "ic gies tem a

po"er to s"itc from one net"ork to anoter if tey are not satisfied or pleased "it te serices!

Tere fore it so"s tat customers in Pakistan ae ig bargaining po"er "en it comes to

telecommunication industry! Tis is some ting of adantage to Ufone because it gies it a cance to

get customers from four oter mobile net"ork serices! 7n te oter and it sould make sure tat it

keeps it customers retained and te best "ay to do tat is by keeping tem satisfied and appy!

0:>?:#8#8? P7;E> 76 SUPPL#E>3DTe suppliers to telecommunication companies in P:9#ST:8 are Pakistan Telecommunication

:utority (PT:)! :s mentioned aboe tat Ufone is a subsidiary of PT:, it gies Ufone an edge oer


17/19

its competitors as PT: "ould carge Ufone te least possible rates to gie it an adantage oer

oter competitors!

Hence bargaining po"er of supplier in tis case is ery lo" and Ufone sould use tis strengt to

oer come its competitors!

C7MPET#T#784>#A:L>B3DTe ne5t in porter fie forces is te force of competitors! Ufone as a lot of competitors in te

industry suc as te Mobilink, Telenor, ;arid and Jong! Some data as been gatered to so" o"

strong te competition as been bet"een tese companies in te recent times3D

:s per ecember %''& stats, in absolute terms Telenor came on top "it ne" ! million

subscribers, follo"ed by Mobilink %! million and ;arid % million! 7erall, mobile pone operators

fared "ell in %''&, "it total addition of =!= million subscribers pusing telecommunication density to

TH>E:TS 76 : SU0ST#TUTE3D#n today+s modern, adanced and tecnological "orld, tis treat e5ists not 1ust for Ufone but all

oter telecommunication companies as "ell! Tis is one reason "y it is al"ays important to stay

update "it te industry+s market, ae adanced tecnology, skilled "orkers and tecnically

aailable staff!

Te popularity of te recently launced Eo tecnology as escalated, "ic is eident from te

increasing subscribers, "ic ae 1umped to K,''' as of 8o '&! %''& proed to be an impressie

year despite te difficult economic enironment! Te reason "y people "ould coose Eo are as

follo"s3D


18/19

6or someting like Eo to "ork in Pakistan "ould re*uire a lot of time and a"areness amongst

people as till date, internet calling is not someting about "ic people are a"are! Hence it can not

be completely taken as a substitute for mobile net"orks until internet calling serices are proided at

ceaper rates and people are made a"are about it!

PT: e5pects broadband users to rise to !< million by %' (currently at appro5imately !% million)tis is one substitute coming in "ay of Ufone and its competitors!

0ut still treat of substitutes is lo" as tese are all adanced tecnology e*uipments "ic te

common public in P:9#ST:8 may find difficult and aboe all e5pensie! 7n te oter and, if some

product in a simplified form focused on costs is launced in te market tan it could be a big treat

for all telecommunication companies!

TH>E:TS 76 8E; E8T>:8TS3DTelecommunication industry is not a ery easy industry to enter as it as a ig cost to enter te

market! Te cost includes ac*uiring license "ic in Pakistan is issued by PT: and as Ufone is a

subsidiary of PT: so it is one big adantage for tem!

:part from tis, a company also needs to adertise eaily and set up its to"ers in different areas

"ic is a uge cost for a company starting a ne" business

Tere fore it is not an easy industry to enter and treats of ne" entrants are generally lo" from local

inestor point of ie" but in te past fe" years first Telenor tan ;arid and no" Jong ae all come

in P:9#ST:8 market and got a lot of success along "it Mobilink and Ufone "ic may attract and

entice oter telecommunication companies around te "orld!

C78CLUS#783D0y keenly analy-ing te marketing strategies of Ufone, # concluded tat Ufone is slo"ly and

gradually penetrating into te telecommunication market! #t can be noticed tat it is follo"ing te

:8S766 matri5 "ere market penetration strategy is used if bot product and market are e5isting! #t

is doing so by taking risks and aggressiely promoting and adertising its brands, packages, tariffs

and products! Ufone proides te lo"est calling rates troug out te country and it as no idden

carges! Troug its marketing strategies, Ufone tries to remain a potent force in te cellular

industry!

uring te analysis # came troug many unconentional strategies and ad campaigns! Ufonesigned tree Pakistani dias in one of its ad! Tis "as someting neer done before by any oter

telecommunication industry!

#t is al"ays "ell kno"n and belieed tat telecommunication industry is one of te tougest markets

to enter and e5pand! Ufone is 1ust not suriing but is also maintaining its market sare! :t one time

Ufone e5ceeded %' million customers but tan it came do"n to & million and on to te t position,

but "it time it got back in action and altoug te latest grap so"s tat it lost some part of its


19/19

consumers, it is back to number in te telecommunication companies in Pakistan! To furter

proceed in te telecom sector # ereby recommend te follo"ing3D

>EC7MME8:T#78S3 During te analysis tat # carried out # found out tat tere "ere some reasons for Ufone loosing its

customers and market sare!

Te first ting tat U678E sould do is tat it sould make a formal strategy and try to capture more

of te corporate "orld suc as te leading multinationals Co! #t can do so by proiding tem "it

good tariffs or packages "ic are lo"er tan oter companies! #t can also proide tem "it better

*uality serices by e5tending its range of coerage!

Secondly Ufone sould focus more on its o"n adertisements rater tan leg pulling of its

customers! #n its "ar of adertisements "it Jong it spent a lot of money on its ad+s but it offended

many customers! So Ufone in its ad+s sould concentrate on its o"n brands and products!

Tirdly Ufone some times goes too far to attract customers "ic may be unacceptable to te local

culture! #t sould stick "it its o"n teme of adertisements tat is te umorous teme rater tan

going to"ards te unconentional ad campaign as te culture in Pakistan "ould not accept anyting

tat is ceap or offensie!

Te last but not te least, Ufone sould be a"are of its competitor moes and tere alue added

actiities! #t sould keep a close eye on all its competitors mainly Mobilink and Telenor as tey are

te t"o companies currently positioned aboe Ufone! Ufone can also bencmark its competitor suc

as Mobilink in order to improe in departments "ere it is lacking and "ere te competitor is better

of!

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