term report ufone

8/3/2019 Term Report UFONE

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MARKETING ANALYSIS OF UFONE

Hamdard Institute Of Management Sciences (HIMS) Page 1

I dedicate this project to my beloved parents, teachers and friends for

keeping my spirit high and for their love, support and guidance throughout

my life.

WAQAR AZEEM


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ACKNOWLEDGEMENT

All Praise to Allah. First and foremost I thank Allah, the Generous, for having finally made this effort a reality. I praiseHim because if it were not for His Graciousness, it would never materialize.

Im extremely grateful tomy course instructors entire course instructor. who spent a lot of valuable time with me andgave all the related information and expertise very generously about related courses.

I thankful to UFONE PTML and its employees who provide the platform to complete my report successfully, speciallythanks to Sr. Manager HR Abdul Rehman Fiasal, Astt. Manager HR Farooq Naeem Sofi, Sr. HR Ex. Waheed Anwar, HREx. Raza Hussain, and HR Ex. Mohammad Shawzib.

At last I, express our deepest gratitude to all those who contributed directly or indirectly to bring this report to this finalformat, because I would never have been able to achieve this by my self.


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TABLE OF CONTENTS

1. Executive Summary.......................................................................................42. Introduction...................................................................................................53. History Of Ufone............................................................................................64. Mission Statement.........................................................................................75. Vission Statement..........................................................................................76. Company Analysis..........................................................................................77. Environmental Analysis.................................................................................128. Major Product Lines & Market Segments.....................................................129. Marketing Strategies.....................................................................................1310.Marketing Mix...............................................................................................1411.Market Share.................................................................................................1512.SWOT Analysis...............................................................................................1613.Conclusion.....................................................................................................17


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EXECUTIVE SUMMARYThis project has been undertaken in order to highlight the Human Resource Practices ofUfone. Its all about YOU its all

about Ufone, a company very highly spoken of these days. A company paying more attention to its customers delightsrather then the customers satisfaction. Ufone is a company starting from scratch and has shown utmost performance in

the last four years. Ufone owes its success to its employees believing that providing employees with job satisfaction,

motivates them to work hard and provide better results.

Proper planning is Ufones strongest point; all the products that they have launched so far are backed by wise

strategies with proper market research and massive advertisement campaigns. Decisions are taken at top

level with some participation from the lower levels showing that they do comprehend the worth of Group

decision-making. However goal setting is a procedure dedicated to only the top management. Working onnewer technologies is a specialty of ufone.


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INTRODUCTION Background of Telecom Industry In PakistanToday information has become the most vibrant force and factor of production in the new economy thefoundation of the information infrastructure is the telecom system. Initially, the telecom industry was monopoly.The world started to see an initiation of reform in this sector from early eighties of previous century. In Pakistanthe liberalization of telecom sector started in early 1990s. The real defining moment was the passage ofTelecom Re-organization Act of 1996, which established the Pakistan Telecom Authority (PTA) asindependent regulator of the sector and set timeframe for ending the PTCL monopoly. This act paved the pathfor liberalization of the telecom sector in line with the global trends and Pakistans commitment to theinternational treaties like WTO.

With the deregulation of telecommunications sector in Pakistan in early 90s, Ministry of Communications awarded two

licenses to begin cellular operations based on AMPS technology. Paktel and Instaphone were formed as joint venture

between foreign and local partners. Instaphone initiated its services in 1990, while Paktel started its operations in 1992.

Both the companies were using AMPS technology. A year later, a third license was awarded to the Saif Group that led to

the inception of Mobilink that started its services in 1994. It was the first company that introduced GSM technology in

Pakistan. In 1995, the Cellular Industry suffered a major blow with the closure of operations in Karachi, the largest

market, but the closure sanction was lifted after almost two years. On January 19 th, 2001, PTCL entered the cellular

market with its on operator based on GSM technology under the brand name of Ufone.

In April 2004 Pakistan Telecommunication authority (PTA) awarded two new licenses under an open auction process for

a fee of $291 million. These were purchased by two companies namely, Warid telecom and Telenor. Telenor started its

operations on March 15, 2005. Al-Warid started its operations on 23rd May 2005.

The cellular industry had been offering attractive rewards and pays since the beginning. However, with the introductionof the two new companies Telenor and Al Warid, the pays and rewards have taken a rise. The two new companies

especially Telenor have been able to attract highly qualified workers of two main companies namely Ufone and Mobilink

by offering them higher pays and rewards. Keeping this in view, the Mobilink and Ufone had to revise their pay plans and

rewards. Currently, there is tough competition in the cellular industry and all the companies are trying hard to attract,

retain and motivate their employees by offering them attractive pay packages.


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History of Ufone

Uf

Ufone 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

During the year, as a consequence of PTCLs privatization, 26% of its shares were acquired by Emirates

Telecommunication Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been handed over to

Etisalat. 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 750 cities,

towns and across all major highways of the country.

During the year Ufone successfully completed the network expansion of Phase IV in existing as well as in new cities andtowns, 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.

During the year Ufone adopted the policy of simplified tariffs with no hidden charges, which resulted in positive impacts

on the usage trends of subscribers as well as total subscriber base, which has increased from 2,579 k in June 2005 to

7,487 k in June 2006. Ufone currently caters for International Roaming to more than 200 live operators across 121

countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United

Arab Emirates, Singapore, Portugal, Thailand, Cyprus, Bangladesh, Uzbekistan, Tunisia and Kuwait with lowest rates,

featuring no security deposit and activation charges. GPRS Roaming facility is available with more than 90 Live

Operators across 66 countries. The company has also been awarded a new License for providing cellular services inAzad Jammu & Kashmir and Northern Areas.


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Mission StatementTo become the best cellular communication option available in the country for u.

Vision StatementIn order to evolve with our customers and to keep pace with your needs, we rejuvenated and revamped ourimage by changing our visual identity. At Ufone we understand the value of words and the need tocommunicate effectively and efficiently at all levels of society, which is why our primary focus is on U, ourvalued customers bring strength to our company.With a fresher look than is accepted and appreciated across the board by people of all ages, we aim toconnect with you and provide you state of the art services. No matter who you are, where you are, what youwant to say, how you want to say it or how you feel, you are our focus. Because at Ufone, its all about U,

COMPANY ANALYSIS Operational AnalysisWhen a company wants to compete in innovation, it needs to maximize flexibility. Flexibility is maximized byaggregating work into larger, holistic pieces that are executed by teams of higher wages, high skilled workers.Giving the units their own support systems and decision-making authority to take advantage of localopportunities in regional or specialized product markets also enhances flexibility.

Keeping in view of all these factors the structure of Ufone is designed i.e. the overall Structure of the Ufone is Divisional

(More flexible and innovative). Mainly Ufone has four regions and within those regions the structure is functional .The

decision making authority is centralized at the top but within the regions it is decentralized i.e. regional heads have to

inform top management before making any decision


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Board of Directors

CEO

Project Director

Marketing

&

Sales

Finance

Information

System

Customer

Care Engineering

QualityAssuranceBusiness

Unit

Khi/Lhr/Fsd

HR

&

Admin


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This is what Ufone looks from the organizational hierarchy point of view. There are eight different departments each

headed by a Project Director. They report directly to the CEO. There are four BU (Business Unit) each Project Director is

responsible for these eight divisions. BUs are divided geographically into three divisions

BU North (Peshawar to Jehlum, including Islamabad)BU Central-1 (Gujranwala till Sialkot)BU Central-2 (Multan till Rahim Yar Khan)BUM South (Sindh and Balochistan)

Operating PerformanceUfones operational performance has been very encouraging. Despite the stiff competition in Pakistan telecommarket which has led to reduction of prices to bare minimum level, due to its aggressive policies andexercising strict control over expenses the Company managed to improve its revenue and after-tax profit by87% and 54% respectively, as compared to last year.

Financial AnalysisUfone has over the last six and a half years made huge investments in the national economy. PTML has successfullybeen able to build upon its excellent financial results from the previous year. During the year Ufone successfully

completed the network expansion of Phase IV 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.

Since Ufone is an SBU of PTCL therefore they are not authorized to disclose their profits separately. For the same

reason PTCLs financial statement incorporates the profits earned through its mobile operations and the figure are

displayed in their annual reports.

Future Financial PlansKeeping in view the growth potential of the cellular industry there is no option but to be aggressive in order toremain a potent force in the cellular industry. In order to extend cellular network to new cities, towns andhighways and enhance its current installed capacities in existing cities, Ufone has finalized a huge networkexpansion contract amounting to about USD 550 million, which will enhance the subscribers capacity by 10million. 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.


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AdvertisementsSince most of the posts are of a specialist nature, they intend on advertising in the journals of professional bodies and

the trade press. Their next step is to find out how much adverts cost for varying amount of space and decide what they

can afford.

The HR management has hired the services of Interflow, an advertising agency, to propagate their service and company

for them. They are also using the services of a web designer, Eveready media, to post the advertisement of the

company on the Internet.

Marketing AnalysisToday, Ufone is the affordable mobile service option available in the local market with all facilities available at affordable

prices. Right now Ufone commercials are beings aired in 15 different TV dramas. These television commercials have

received a lot of appreciation from both their valued customers and advertising industry professionals in Pakistan. Ufone,

with Pakistan's largest advertising company Interflow Communications Private Limited, has always tried to deliver truthful

and interesting advertising to its viewers.

Ufone invests heavily on its advertising budget and its commercials are not only aired on TV and radio but are also

printed in the leading newspapers and magazines of the country.Huge billboards and banners have also been put up at

eye catching locations in different cities, advertising the latest new services being offered. It also participates in

sponsoring various theatre and stage plays in various cities along with live rock concerts held across the country.

Cricket matches are another area in which Ufone ads are commonly viewed. It even allows its subscribers to

receive wicket alerts and download animated video clips of falling wickets and via its MMS service.At times Ufone has even restored to aggressive marketing strategy in order to gain a larger market share. They areusing dumping strategy to gain maximum market.

Marketing DepartmentTheir Marketing department consists of following four units.

Brand MarketingValue Added Services (VAS) International RoamingMarketing Operations.


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Brand Marketing DepartmentBrand marketing department of Ufone deals with the advertisement agencies, all the ads shootings, animation, posters,

billboards, TV ads, radio newspaper etc. They Create ideas ot hire some firm to make their up coming promotion.

Value Added Service (VAS) DepartmentValue added service department deals with the different packages related with the ufone connection, they do researchand market analysis to find out customer needs and then design vale added package for those customer like for

example these days most famous value added package is 1000 SMS is Rs 75 which can be activated by dialing 777

from the Ufone prepaid connection.

Some of the features offered on Prepay are as follows:

Voice Mail: Ufone Voice mail lets you receive and store messages when you are unable to attend your calls; ifyour phone is switched off, not responding, busy or out of coverage.

SMS: With Ufone's Short Messaging Service you can send unlimited messages to your friends, loved ones andcolleagues

GPRS: Ufone GPRS allows you to check your e-mails, chat with friends or browse the internet from your mobilephone

MMS: MMS allows you to send photographs or video clips to an email or another Ufone. International SMS: International SMS: You can now send unlimited messages to 449 operators in over 169 countries all over the

world at a standard SMS rate.

Marketing

Brand

Marketing

Marketing

Operations

International

RoamingVAS


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Downloads: Ufone provides a wide range of downloads for your mobile in form of Java Games picturemessages, color wallpapers, ring tones, logos etc.

International Roaming DepartmentInternational Roaming department deals with people who went across the country boarder with Ufone SIM with

international roaming activated. I more frequently related with the people who went for Umrah and Hajj.

Marketing OperationsMarketing Operations department at Ufone deals with all non-electronic activities like billboards, outdoor, sponsorship,

event-sponsorship, franchise out-wall and in-wall monitoring

ENVIRONMENTAL ANALYSESThe environment of any organization plays a very vital role in bringing out the inner qualities and talents of people. On

entering the Ufone office, what strikes a person most is their atmosphere and decor. The atmosphere of the Ufone head

office is a very pleasant one, with a large impressive lobby welcoming the distinguish customers. The dcor includes

glass and steel walls. This communicates that Ufone has effectively dealt with its most toughest and delicate issues with

care.

To make the atmosphere more pleasant, a touch of greenery has been added, to communicate that Ufone is an eco-

friendly organization. The security check on entering the majestic hall gives the customer a sense of security. It requires

the person visiting the office to sign an entry form and wear a badge.

All these things made the office informally communicate that it welcomed customers and guests, but the most important

element that makes this backdrop complete is the employees, all formally dressed, communicating that the organization

strictly adheres to dress code.

Industry & Market AnalysisAll mobile phone operators in Pakistan have two basic types of connections i.e.

PrepaidPost paid

Major Product Lines & Market Segments Ufone Product LinesThere are two basic products of Ufone Ufone Prepaid and Ufone Postpay. Both pf these products are available at

their franchise for public.


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1. Ufone PrepaidUfone Prepaid is with a wide range of products and features your Ufone Prepay connection is a complete communicationsolution that offers you SMS, GPRS, MMS, Call Features, International Roaming and a variety of amazing Mobile

Products

2. Ufone PostpayUfone Postpay is a brand that keeps up with you, understanding your drive for victory in the business arena and your

sense of belonging in your personal life. On Ufone postpaid they aim at providing you with the most superior mobile

phone services, widest quality network & best customer services for you on your journey to success. It have following

features;

MARKETING STRATEGIES

MARKET SEGMENTATIONCellular 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 III. GENDER : Male & Female IV.

OCCUPATION : corporate class, Business class, working class etc

TARGET MARKETSCellular 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.

POSITIONINGPositioning is the process of creating an image of companys 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.

Ufones former Positioning Statement:


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Everybody Loves to Ufone Prepay

Ufones new Positioning Statement:

Ufone tum hi toh ho!

Or

Its All About U

Ufones 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

DIFFERENTIATIONIn 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:-

PriceQuality service Technology

MARKETING MIX1 - 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.

2PRICE

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 customers 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.


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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 havent 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 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 :

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 .

MARKET SHARESAccording the the results of research on market shre of Pakistans mobile companies we have following data

Ufone 21%Mobilink 49%Telenor 11%Waird Telecom 14%


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Paktel 5%SWOT ANALYSIS

StrengthsUfone is a government company and therefore it enjoys a lot of concessions, which the private cellular

companies cannot enjoy.

GSM technology. It has a strong brand identity. It has successfully projected itself as a company meant to serve its people.Ufone has Wide network.Ufone has a comprehensive promotional strategy.Ufone has a unified network of franchises.Electronic Voucher Distribution (EVD) is a great new re-charge option for prepaid subscribers that doesn't relay

on the availability of scratch cards for topping up their Ufone credit. This service is great because it ensures that

the credit require for Ufone connection will always be available on-demand.

WeaknessUfone being a government organization has relatively less human and financial capital available as

compared to its major competitors that are subsidiaries of large multinationals such as Mobilink and

Telenor.

Customer services provided by Ufone are not according to the requirements of their customers.High Turnover rate.

OpportunitiesThere are vast opportunities of growth as market penetration rate of the cellular market of Pakistan is only

2.3%

The introduction of new technologies in the cellular industry has increased the demand for it along withreducing the operation costs for these companies.

Ufone can develop direct relationship with retailers on large scale through Electronic Voucher Charge.Ufone can further improve its network in order to make more loyal customers.With the globalization of the world Mobilink can further increase its market.

ThreatsJust as Telenor, Ufones greatest threat is its competitors especially Telenor and Al-Warid. These

companies have introduced new technologies with consumer friendly packages. Ufone will have to devise

its defensive strategies tactfully in order to retain its share in the marketChanging technology is also a threat for Ufone because things are changing so frequently in the market with

the change in technology.


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CONCLUSION & RECOMMENDATION

MotivationAgain although Ufone HR management says that it motivates its employees but according to the employees there is no

motivational aspect present which gives a positive impact.

Have A More Professional AttitudeUfone does not follow a very professional attitude and a lot of biasness and personal favoritism is present and

employees are also evaluated on the personal relations with their respective upper management with out taking

performance much into consideration

term report ufone

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