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STRATEGIC MARKETING
FINAL REPORT
Submit to: Dr. Muhammad Imran Hanif
Submit By: Group No 9
Syed Mughees Ul Hassan Roll no 55
Maryam Fatima Roll no 56
Syed Faraz Ali Roll no 25
MBA (HRM) 5
th
SEMESTER 2013-16
DATE: November 23, 2015
Mission Statement
To be the Best Cellular choice
of the Customer in Pakistan.
ALFALAH INSTITUTE OF BANKING AND FINANCE BZU, MULTAN.
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LIST OF CONTENTS
Chapter 1: The Organization ...................................................................................................... 3
1.1. PROFILE ..................................................................................................................... 3
1.2. HISTORY.................................................................................................................... 4
1.3. NATURE AND SCOPE OF ORGANIZATION ........................................................ 5
1.4. VISION ....................................................................................................................... 5
1.5. MISSION .................................................................................................................... 5
1.6. CORE VALUES ......................................................................................................... 5
1.7. OBJECTIVES/GOALS ............................................................................................... 5
1.8. PRODUCTS LINE ...................................................................................................... 6
Chapter 2: Organization Marketing Mix .................................................................................... 7
2.1. PEOPLE: ..................................................................................................................... 7
2.2. PRICE.......................................................................................................................... 7
2.3. PLACE ........................................................................................................................ 9
2.4. PROMOTION ............................................................................................................. 9
2.5. Products ..................................................................................................................... 10
2.6. PHYSICAL EVIDENCE: ......................................................................................... 10
2.7. PROCESS ................................................................................................................. 11
Chapter 3: PROMOTION MIX ............................................................................................... 12
3.1. ADVERTISING ........................................................................................................ 12
3.2. ADVERTISING BUDGET ....................................................................................... 12
3.3. SALES PROMOTION .............................................................................................. 12
Chapter 4: The Marketing Environment .................................................................................. 14
4.1. POLITICAL: ............................................................................................................. 14
4.2. ECONOMIC FACTORS: ......................................................................................... 14
4.3. SOCIO-CULTURAL: ............................................................................................... 14
4.4. TECHNOLOGICAL FACTORS: ............................................................................. 14
Chapter 5: Market Analysis ..................................................................................................... 16
5.1. Segmentation Analysis .............................................................................................. 16
5.2. Needs/Wants Analysis............................................................................................... 16
5.3. Products/Services Analysis ....................................................................................... 16
Chapter 6: SWOT Analysis ..................................................................................................... 17
6.1. Strengths .................................................................................................................... 17
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6.2. WEAKNESSES ........................................................................................................ 18
6.3. OPPORTUNITIES .................................................................................................... 19
6.4. THREATS ................................................................................................................. 19
Chapter 7: Competitive Advantages ........................................................................................ 21
7.1. CHALLENGES ......................................................................................................... 21
7.2. FUTURE PLANS ...................................................................................................... 21
Chapter 8: Research Methodology........................................................................................... 22
8.1. Level of priority ........................................................................................................ 22
8.2. Research Questionnaire ............................................................................................. 22
8.3. Critical Analysis ........................................................................................................ 23
8.4. Research Outcomes ................................................................................................... 23
Chapter 9: Conclusion.............................................................................................................. 24
9.1. Suggestion and Recommendation ............................................................................. 24
LIST OF SOURCES OF INFORMATION GATHERING: ....................................... 24
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Chapter 1: The Organization
PTML (Pak Telecom Mobile Limited) is a subsidiary of PTCL
(Pakistan Telecom Company Limited), the largest operator in
Pakistan. PTML was 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 PTCL's privatization, 26% of its shares
were acquired by Emirates Telecommunication Corporation
(Etisalat). Being part of PTCL, the management of Ufone has
also been handed over to Etisalat.
Since its inception, Ufone has focused on the people of Pakistan, empowering them with the
most relevant communication modes and services that enable them to do a lot more than just
talk, at a price that suits them the most.
1.1. PROFILE
Ufone came in the market when it was mainly captured by Mobilink and InstaOne. It was a
difficult task to become a part of such a market in a country like Pakistan where people were
not aware about mobile phones and it was a status symbol at that time. Ufone changed the
whole scenario and as soon as it came in the market it provided with very cheap mobile
connection and calling rates which were offered neither by MOBILINK nor by InstaOne.
Along with the claim of lowest call rates, clear sound and best network, Ufone offered its
customers simplified tariffs with no hidden charges. With a strong and uniquely humorous
communication direction that has now become Ufone's signature across all advertising media,
Ufone gives its customers many reasons to smile.
During the year July 2005 to June 2006, 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. This customer focus and best offering has allowed Ufone to build a
subscriber base of over 20 million in less than a decade. Ufone has network coverage in 10,000
locations and across all major highways of Pakistan. Ufone expanded its coverage and has
added new cities and highways to its coverage network. The company has also been awarded
a new License for providing cellular services in Azad and Jammu Kashmir and in northern
areas.
Ufone currently caters for International Roaming to more than 260 live operators in more than
150 countries including Saudi Arabia , United kingdom, UAE, Singapore, Portugal, Kuwait
and others with lowest rates, featuring no security deposit and activation charges. Ufone also
offers Pakistan's largest GPRS & BlackBerry Roaming coverage available with more than 150
Live Operators across 105 countries. More recently, Ufone has become a focused and intensive
leader in VAS, constantly introducing innovative services, which have been the first of their
kind in the Pakistani cellular industry.
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 2,579k in June 2005 to 7,487k in June 2006. Ufone currently caters
for international roaming to more than 230 live operators across 130 countries and introduced
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International roaming facility for prepaid subscribers in Saudi Arabia and United Arab
Emirates with lowest rates, featuring no security deposit and activation charges.
3G License Auction PTA was willing to auction 3G license as early as 2008, as it had
completed the framework for 3G Mobile Phone Operations in Pakistan. Due to Government's
negligence and lack of focus, the matter of the auction dragged on, being raised again in 2012
and 2013 and finally auctioned on 23 April 2014 and the 3G licenses were auctioned to Ufone
(5MHZ).
On May 2, 2014, Ufone started its 3G services on trial bases in major cities of Pakistan and on
May 23, 2014, it launched its services commercially and launched its 3G packages for both its
Prepaid and Postpaid customers.
1.2. HISTORY
In 1990, Pakistan introduced its first mobile phone service called “PAKTEL”. After eleven
years in January 2001, a new cellular company with GSM technology came into the market
and they named it Ufone.
The government of Pakistan granted them the license of Pak Telecom mobile limited to operate
GSM 9000 all around Pakistan. Ufone succeeded to establish itself in the market by providing
quality service at low rates. After its opening, initially they started their service in major cities
like Rawalpindi, Islamabad, Karachi and Lahore and on major highways. Later the service
expanded to other major cities like Peshawar, Quetta and different towns.
Ufone invested around $ 65 million to setup its modern technical infrastructure to provide high
quality crystal clear voice and fast data transmission. Ufone targeted the middle class, by
introducing low rates and different packages with Urdu names like Jazba etc. to attracted lower
and middle class people. Ufone has expanded its customer support in a very organized manner
with a planned network of dealers, outlets for people convenient. Ufone is committed to care
for its customers even after they have acquired a new connection. Ufone not only focused on
the technical capabilities, but to provide subscribers a convenient to get connections and
services. Ufone recently started GPRS through which users can connect themselves to the
global village via Internet, also introduced multimedia messaging services and worldwide SMS
at flat rates. Not only SMS but also provides Ufone Info service through which user can get
latest information about news, sports, religion, horoscope, stock exchange etc. even live sports
updates.
The tariff packages have been designed keeping in mind the requirements of every segment of
the society may that be a housewife, a taxi driver, a trader or a student. Ufone started its
operation from Islamabad on 29th January 2001. Cellular industry performance in Pakistan
before the launch of Ufone was quite dismal, with one of the lowest population penetration
rates in the whole region.
Ufone’s strategy from the day one was to change this scenario and ensure that mobile phones
are turned into an everyday business and personal communication tools for all. This approach
brought about a revolution in the market; increasing its size fivefold in a mere two years.
Ufone’s own performance in these two years has been exemplary, as it surpassed all financial
and marketing goals. Despite Ufone’s strategy to provide a high standard of service rather than
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increasing subscriber base without capacity, it has achieved a substantial market share in a
market ten years older than itself.
1.3. NATURE AND SCOPE OF ORGANIZATION
The telecom market's growing rate in Pakistan is higher than any Asian country. Ufone offers
lower rates and better network then other already established cellular companies. All living
standards have been captured by Ufone, like Students, Labor and Businessmen, etc. Ufone aims
to provide with wider coverage, superior connectivity, clear signals & voice quality to their
valued customers.
1.4. VISION
“To be the leading telecommunication service provider in Pakistan by offering innovate
communication solutions for our customers while exceeding shareholder value & employee
expectation.”
1.5. MISSION
"Ufone, it's all about U! We are where you want to be. At Ufone we aim to provide you with
wider coverage, superior connectivity, clear signals &voice quality. Wherever you are, Ufone
keeps you connected."
1.6. CORE VALUES
? Leadership with Passion
? Teamwork & Innovation
? Entrepreneurship, Freedom with Responsibility
? Humility in Relationships
? Commitment with Fun
1.7. OBJECTIVES/GOALS
As a common practice big organizations divide their long term mission into short term goals
and objectives. To attain these goals and objectives they develop strategies accompanied by
policies, procedures, programs, rules and regulations. The goals and objectives have to be
achieved collectively or they can be related to a specific department. However broadly
speaking, the goals and objectives of Ufone are as follows:
1. 100% achievement in given target of sales.
2. To penetrate into the market with existing products e.g. prepaid and postpaid packages
as per the segments and to build a front line services selling company image in public.
3. Concentrate to generate high quality sales and help to build trust, loyalty and sense of
affection among the customers by performing and extending extra services to them.
4. To do all possible efforts to outclass competitor’s activities from the market and to
achieve the company’s goals by representing excellently as a true Pakistani company.
To sustain customer base and maintain quality to avoid sale returns.
5. To ensure the following personal excellence:
? Product and company excellence.
? Coordination, Cooperation and reporting.
? Professionalism.
? Time Management
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? Office Management
1.8. PRODUCTS LINE
Ufone offers a variety of products and services to its customers. In each product it offers a
variety of different packages for its different segment of users. The following are the different
products of Ufone:
? Post paid
Postpaid services are advertised by the name “Post pay”. These services are largely
embattled towards the business community of the country but having the packages
of middle class also.
? Pre-paid
Ufone markets its prepaid services as “Prepay”. Ufone Prepay is more reasonable.
Its principal market is planned towards the teen agers and students.
? Blackberry
? UPasa (Agent Banking)
The most widely used Ufone brand is the Pre-paid brand through which it targets its main
segment customers that is the youth of PAKISTAN. It offers a variety of services for its pre-
paid users such as:
? 3G
? UPayment (Online Bill Payment)
? Power SIM
? WAP
? International Roaming
? Voice Mail
? Call Management
? Messaging
(All information taken from Ufone customer service center)
On the other hand it also provides a lot of different packages for calls and short message service.
These are as follows:
? Tension Free Package
? Ufone hourly Package
? Super hourly Package
? 5 KA 15
? Public Demand
? Life Plus
? U Circle Life Plus
? U
th
Package
? Bundle offers
? Super 5 offer
? 30 Paisa offer
? Din Bhar Offer
? Location Based Offers
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Chapter 2: Organization Marketing Mix
It comprises of 7P'S of marketing. They are as follows
2.1. PEOPLE:
In this part of the strategy, different segments and class of people will be discussed. From a
telecommunication point of view, the following will be normally being large segments of
people to target.
? Corporate Class Entrepreneurs (Business class)
? Working class Youth (ageing between 15 & 22)
? Government organizations
These are mainly 5 segments in which mobile users could be divided. As for Ufone, at first it
tried to focus on the common man such as the labor class to give an idea and concept that
mobile phone is affordable for all but after some time it took a strategic shift and now it mainly
focuses on the youth of Pakistan. Through its advertisements it tries to attract youngsters,
school going and college going crowd.
On the other hand, it does not have a lot to offer people from professional field and it never
spends heavily on its advertisements for corporate class or business class.
The main competitors of Ufone in this regard are Telenor and ZONG which is a china mobile
subsidiary in PAKISTAN. The advertisements of Telenor are also very colorful and attractive
for the youth and ZONG from the very beginning came with the idea of attracting youth of the
country.
2.2. PRICE
Customers 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 differentiation of Ufone. Ufone is the one who around a year
back offered the cheapest rates on-network and off-network. Now it's a strong fight between
ZONG and Ufone and new rates keep on publishing every month and at times every week.
Ufone strategizes 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 day's thus compelling people to use Ufone for international calling.
It also offered hourly call rates in Ramadan when people were least likely to avail the offer that
much that it might prove unprofitable for Ufone as in Ramadan people in PAKISTAN mostly
fast and mostly people won't talk for hours during their fasting but UFONE made people talk
with its extremely special offers and packages.
It was a fantastic strategy to beautify the brand image in term of pricing in customer's minds as
well as remain profitable in doing so. Ufone follows market penetration pricing strategy and
dynamic pricing strategy to meet the customer needs and ever changing price competition.
Ufone also provides with the best SMS rates. They are as follows:
? PACKAGE 1 165SMS @ RS 25+TAX/MONTH
? PACKAGE 2 500SMS @ RS 50+TAX/MONTH
? PACKAGE 3 1000SMS @ RS 75+TAX/MONTH
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? PACKAGE 4 8000SMS @ RS 80+TAX/MONTH
? PACKAGE 5 UNLIMITED SMS @ RS 3+TAX/DAY
Ufone provides the cheapest messages rates in Pakistan. The other company that is close to
Ufone is Telenor. Its brand DJUICE provides its customers with the following packages:
? PACKAGE 1 1000SMS @ RS 8.76+TAX/WEEK
? PACKAGE 2 3500SMS @ RS 29+TAX/WEEK
? PACKAGE 3 7500SMS @ RS 69+TAX/WEEK
? PACKAGE 4 300SMS @ RS 3.71+TAX/WEEK
Mobilink brand JAZZ provides many different packages such as JAZZ BUDGET, JAZZ
EASY, JAZZ OCTANE etc. Jazz Octane provides the cheapest SMS rated that is just RS
0.20+TAX/SMS and daily charges of RS 1.00
Still new in market the brand of ZONG launched by CHINA MOBILE even comes to be a
tough competitor as it offers services keeping different types of users in mind. ZONG has the
package best suited for customer requirements while keeping the affordability in check.
Daily SMS PACKAGES
500 SMS & 100 MMS for whole day only for Rs. 3.99 On exceeding 500 SMS, additional
SMS to be charged as per tariff plan
This bundle would be valid for 1 day only * In order to re-subscribe your number should be
active and you must have sufficient balance available
Weekly Bundle
1000 SMS for whole week only for Rs. 10
On exceeding 1000 SMS, additional SMS to be charged as per tariff plan
This bundle would be valid for 7 days only
In order to re-subscribe your number should be active and you must have sufficient balance
available
Fortnightly Bundle
500 SMS / day for 15 days for only Rs. 50
On exceeding 500 SMS a day, additional SMS to be charged as per tariff plan
This offer would be valid for 15 days only
In order to re-subscribe your number should be active and you must have sufficient balance
available
Monthly Bundle
500 SMS / day for 30 days for only Rs 80
On exceeding 500 SMS a day, additional SMS to be charged as per tariff plan
This offer would be valid for 30 days only
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Uwon Pakege:
VOICE Call
Ufone to Ufone Rs 2 / Min 24 Hrs
Ufone to other mobile networks and PTCLRs 2 / Min 24 Hrs
Ufone to International Standard rates apply 24 Hrs
SMS
Ufone to Ufone Rs 1.75 inclusive of tax 24 Hrs
Ufone to other networks Rs 1.75 inclusive of tax 24 Hrs
International Rs 5.00 / SMS 24 Hrs
Super Sasta Package:
VOICE Call
Ufone and Ufone85 Paisa / 30 Sec 24 Hrs
Ufone to other mobile networks and PTCL85 Paisa / 30 Sec 24 Hrs
Ufone to international Standard rates apply 24 Hrs
SMS
Ufone to Ufone1.75 inclusive of tax
Ufone to other networks1.75 inclusive of tax
International Rs 5.00 / SMS
2.3. PLACE
Place plays a very important part in the distribution and promotion of services.
Competitors of Ufone are seeking to penetrate into places where others haven't reached. All
cellular service provider companies in Pakistan are trying their best to drastically widen their
network & coverage in every area. Mobilink has this edge in place excellence because it is the
pioneer in cellular telephonic field.
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.
2.4. 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 strategizes to carry out promotion
in order to increase its market share.
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? Advertising
? Advertising Budget
? Sales Promotion
? Public Relations
? Direct Marketing
2.5. Products
Ufone offers a variety of products and services to its customers. In each product it offers a
variety of different packages for its different segment of users. The following are the different
products of Ufone:
? Post paid
? Pre-paid
? Blackberry
? 3G
The most widely used Ufone brand is the Pre-paid brand through which it targets its main
segment customers that is the youth of PAKISTAN. It offers a variety of services for its pre-
paid users such as:
? Internal Excess
? Online Billing Payment
? Power SIM
? WAP
? International Roaming
? Voice Mail
? Call Management
? Messaging
(All information taken from Ufone customer service center)
On the other hand it also provides a lot of different packages for calls and short message service.
These are as follows:
? Tension Free Package
? Ufone hourly Package
? Super hourly Package
? 5 KA 15
? Public Demand
? Life Plus
? U Circle Life Plus
2.6. PHYSICAL EVIDENCE:
It is a very important aspect of marketing. In this part the most important thing is customer
service. One of the examples of physical evidence of customer service that we get is billing.
Ufone has a very effective and easy process of billing for its post-paid customers. It can be
done through credit cards, by using a scratch card, or by physically going to the outlets of
Ufone which are now in big numbers.
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For pre-paid customers it is extremely easy to get there recharge done. It can be done by
purchasing cards with sealed numbers of Rs.100, 500 and 1000 or easy load of any amount of
more than Rs.10 is possible from many outlets of Ufone and even other small shops.
It also has a customer service call center where customers can call 24hours to gain any
information about Ufone packages or to report any problem that they are going through.
2.7. PROCESS
For any organization it is extremely important to know what segment of customers they want
to target, what are their aim and objective and what they want to achieve. In order to achieve
what they desire they will than make a process to attract people from that particular segment
of market.
Each organization has a different way and thinking with which they formulate a process to
market their product. In case of Ufone it is very evident that through their customer gathering
process they are trying to achieve high market share amongst youth of PAKISTAN. This is
currently the most growing market segment in telecommunication as all the youngsters as
described above are privileged to use low rate offers to talk for hours and message as much as
they want.
Apart from normal advertisements and marketing strategies, Ufone also advertises on the
internet through www.facebook.com (a website on internet used mostly by teen agers to
enhance their friends circle and share their personal information with others), newspapers,
magazines etc. and try to gather as much market share as they can through these processes. It
also puts up its stalls in big carnivals, tries a lot of other processes to market its product and to
create awareness of its products everywhere.
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Chapter 3: PROMOTION MIX
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 strategizes to carry out promotion
in order to increase its market share.
3.1. ADVERTISING
It is often noticed that Ufone mainly makes new ads when it has to inform the customers about
new services. Apart from that it heavily promotes its brands and products through its
advertisements on television, radio and newspapers seeking to persuade people to purchase
their service or switch to their connection from other mobile network. It mainly advertises for
pre-paid customers but occasionally it also advertises its other brands such as post-paid,
blackberry and GPRS.
3.2. ADVERTISING BUDGET
Ufone is a heavy spender on advertising in electronic media as well as other media. They are
developing and playing new advertisements on electronic media not even with a month's gap
or so.
A single Ufone advertisement played 15-20 times per day on a TV channel costs millions
varying with the time of day when it is played. Ufone spends 20% of its profit on advertising.
From a special source in Jung Group which owns one of the leading news channels in
PAKISTAN it came to my knowledge that Ufone spends a monthly amount of 20 million on
advertisements. This amount is what Ufone pays to Geo channel alone. There are also channels
such as ARY, INDUS, EXPRESS etc. on which Ufone advertisements are shown day and
night.
3.3. SALES PROMOTION
Sales promotions are short term incentives to encourage the purchase or sale of a product or
service.
Ufone carries out activities to boost its sales. It follows all four of the promotion budgeting
methods via affordable method, percentage of sales method, competitive parity method and
objective & task method.
Ufone carried out contest for cricket talent hunt in the year 2002. A renowned Pakistani
cricketer SHOAIB AKHTAR was used as patron for this contest. However this contest didn't
do much good to Ufone's image or sales. But Ufone holds future plans to carry out such
activities in more effective and profitable ways.
All the cellular services are now offering premiums for their customers. Similarly this premium
is also offered by Ufone when a customer doesn't use his/her mobile connection for up to 3-6
months. Premium is given in the form of extra credit balance delivered to customer's numbers
for free
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Ufone also offered free trip to Dubai. It was Ufone's first Eid offer. Every time a user makes
any international call of 5 minutes or longer than 5 minutes, it enters the lucky draw to win a
return ticket to Dubai. The more calls made by users, the more chance they had to win.
PUBLIC RELATIONS
Ufone has always tried to maintain its public relations. It tries to keep all its customers happy
by sending greeting messages on all occasions such as RAMZAN, EID and other holy and
important days in the country. It has also launched its "Hajj Guide" service.
DIRECT MARKETING
Ufone employ on-road umbrella franchises where they directly market and sell their
connections and Sims. Apart from that in many different cities of PAKISTAN, Ufone has also
made it posters on auto rickshaws which are a unique way of direct marketing.
Ufone has intensive promotion in cities, but it is now improving upon its promotion in rural
areas as well.
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Chapter 4: The Marketing Environment
In Marketing Environment we conduct PEST Analysis in which P stands for Political, E stands
for economical, S stands for social and T stands for technological analysis of industry with
respect to their environment. The organization's advertising surroundings is made up from:
? The organization inner environment e.g. staff (or internal customers), office,
technology, wages and finance, etc.
? The organization external-environment e.g. our external customers, agents and
distributors, suppliers, our competitors, etc.
? The country forces affecting the environment e.g. political forces, Economic forces,
Socio-cultural forces, and Technological forces. These are known as PEST factors.
4.1. POLITICAL:
Political environment of Pakistan is stable in the current situation and country is not
progressing in terms of economic growth that was expected.
Environment is investor non-friendly & telecommunication sector is under regulation.
Before WTO implementation government already took steps in regulation of
telecommunication sector.
4.2. ECONOMIC FACTORS:
Marketers should consider long term and short term state of a trading market
Inflation is being controlled by state bank and under strict eyes but unemployment rate is going
up & up with the increase of level of poverty
Economic instability is worsening day by day as liquidity crunch is prevailing in the world
4.3. SOCIO-CULTURAL:
As Pakistan is an Islamic country and people are very strict in case of Islam anything against
the philosophy of Islam on either print or electronic media are treated as against Pakistan.
Most of the people dislike anything extra-ordinary or something which sabotage their culture
or subculture.
Companies who are targeting upper-end of market mostly published and aired their
advertisement in English language.
In metropolitan cities women are doing work along with their other responsibilities but other
than metropolitan cities it is difficult for women to convince their parents and spouses for works
4.4. TECHNOLOGICAL FACTORS:
Companies have technology with which they can compete in the Pakistan and now companies
are investing in their infrastructure to not only expand but also to upgrade their existing
structure.
Currently all companies except ZONG & INSTAPHONE are providing Multi-media
Messaging Services (MMS), General Packet Radio Service (GPRS), Virtual Private Network
(VPN), Pocket Stocks, Conference Calling, Wallpapers Animated pictures Polyphonic ring
tones (WAP), and Voice Mail at low price and Ufone is proving an addition feature that one
can see TV channels on their cell.
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Ufone shifted its whole network from 900 MHz to 1800 MHz offer Value-Added Services like
General Packet Radio Service (GPRS), Multi-media Messaging Services (MMS) and Virtual
Private Network (VPN) etc.
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Chapter 5: Market Analysis
5.1. Segmentation Analysis
Cellular service market is a diverse set of people. Ufone as well as other cellular service
companies segment their market on four bases: - economy, age, gender & occupation.
I. ECONOMY: Upper class, Middle class, socio-economic class, lower class
II. AGE: Teenagers, youngsters, middle age, aged people
III. GENDER: Male & Female
IV. OCCUPATION: Corporate class, Business class, working class etc.
Target Market
The market segments of UFONE is targeting include:
? Tech-savvy youth
? Business users (due to the their higher average revenue per user)
? First-time subscribers in remote and rural areas
? Previously ignored segments, for instance housewives and women
The ads are vibrant and colorful, conveying a sense of excitement and empowerment.
However, the pretty picture these ads paint is separated from the real world where poor cellular
service has led PTA to announce that punitive action will be taken if problems persist.
5.2. Needs/Wants Analysis
Ufone has always considered the ever growing needs of low call rates and quality service. It
has provided its customers their needed packages and has introduced such brands & packages
that meet customer’s latent needs as well. For example, 5 ka 15 is result of a latent need of
women of our society. They plan to make a short call but it becomes a long one
unintentionally due to gossips and chit chats.
5.3. Products/Services Analysis
Ufone is providing mobile connection service in Pakistan. Ufone is giving lowest call and SMS
packages. Ufone is currently a mobile company that advertising its packages regularly and
made ad of every new package Ufone launch. Ads of Ufone is bit funny. Sometimes Ufone ads
are direct taunts to the opposite mobiles companies. Ufone is trying to provide best packages
and launches the packages that are youth focused.
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Chapter 6: SWOT Analysis
6.1. Strengths
Ufone has network coverage in more than 750 cities, towns and across all major highways of
the country.
Ufone provides International Roaming facility with more than 150 international operators
across 79 countries.
Ufone is proud to have an efficient and friendly customer service through 21company-owned
Sales & Customer Service Centers and nearly 250 franchisees across the country.
Ufone has always believed in a solid commitment to growth, security and reliability. Therefore,
Ufone has always balanced its expansion efforts and quality of service. With a total current
investment of $400 Million.
Ufone is offering the service of Multi-media Messaging Service (MMS).
As mobile users in the country have reached over 78 million at a very rapid pace, Ufone has
maintained itself as the 3
rd
largest cellular operator in Pakistan with a subscriber base of around
16.5 million and a market share of nearly 25%. Ufone has seen a subscriber growth rate of over
200% in the last year, and since the start of 2005 Ufone added nearly 5 million subscribers onto
its network. A remarkable
Achievement indeed, especially considering the fact that two new international players also
entered into the market in 2005.
While keeping its tradition of being the trend setter in the industry, Ufone changed the image
of mobile phones from a luxury only affordable by the elite, to a necessity affordable by the
common man.
Ufone increased its focus on the youth segment (which comprises 50% of the population), with
the Prepay brand. Ufone has the ability to retain its existing customer base with a high level
of customer satisfaction via optimum network service and a 24 hour call center facility.
It has the postpaid service that is normally to attract the Business class people. Most of the
business and elite class people use postpaid and other services offered by the Ufone.
Ufone has a subscriber base of 22.7 million as of JUNE 2015.
Ufone was the first cellular Company in Pakistan that introduced the service of GPRS and
hence took the competitive advantage.
Ufone has some exciting and energetic SMS packages that made SMS almost free. They are
offering Rs. 25, Rs.50, Rs.100, Rs. 150 SMS packages which its subscribers are really loving
it.
Ufone has some very exciting and low call packages like “5 KA 15”, “u-one”, ucircle”, “Ufone
GHANTA”, “Ufone has some very exciting and low call packages like “5 KA 15”, “u-one”, u
circle”, “Ufone life package “and “ U
th
Package” etc. which attracted lots of customers towards
it and many other cellular company users are also switching to it.
Page 18 of 24
Ufone postpaid is also offering black berry set that is useful and tempting for the Business
class.
Ufone currently caters for international roaming to more than 195 live operators across 119
countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia,
United Kingdom, United Arab Emirates, Singapore, Portugal and Kuwait with lowest rates,
featuring no security deposit and activation charges. GPRS Roaming facility is available with
more than 75 Live Operators across 59 countries.
6.2. WEAKNESSES
Ufone does not have the proper lists of its customers. It has the list but this list is not authentic
which is increasing the unauthorized use of its sim especially pre pay. Ufone have to take
serious steps to properly list its customers to ensure that there is no misuse.
It has many franchises in the whole country but as its customers are increasing day by day so
its present franchises are not enough to fulfill the needs of its customers.
Ufone also face problems and its network get jammed on special occasions like EID,
Christmas, New Year etc.
Ufone has the problem of voice quality. Though its coverage area is vast and it covers more
than 750 towns and cities in Pakistan but the voice quality is not as good as it should be.
Ufone though has some unique and distinct services but it has not yet given many innovative
services as compared to other cellular companies.
Ufone was the first to introduce the SMS packages but their packages are not flexible enough
and its charges are only on monthly bases while it should be on both monthly and daily basis.
Call rates from UFONE to UFONE is very cheap but to other networks its rates are expensive.
Its coverage on Southern part of Pakistan is quite good but in northern areas its coverage is
a bit poor.
In Ufone web support is not available.
Its customer’s service staff need training because at many franchises their employees are have
been complained about behaving rudely.
If Ufone Company have to progress and grow in market it has to improve its advertising
campaign. Its advertisements are not good and eye catching.
Being the part of PTCL it has to face many problems like strike by employees etc.
When Ufone came into the seen in Pakistan cellular market Mobilink was already prevailing
in the market and it was all Mobilink monopoly that time. Though with the passage of time
Ufone took many customers of Mobilink but still Mobilink has large number of users because
it was first to Pakistan’s cellular market and this is the competitive disadvantage to Ufone.
Ufone is plagued with some internal problems like when it is privatized to Etisalat being the
part of the PTCL many employees were not happy with the pay scale that they were offering.
Page 19 of 24
6.3. OPPORTUNITIES
Ufone could develop some new and innovative services to attract customers and some of the
suggestions are as under which will help them to increase their revenues:
1. It should introduced International SMS packages like local SMS. Already Ufone is offering
lowest International SMS rates but if they introduce some package like this it will get lots and
lots of success.
2. They should also introduce some International call packages to Middle Eastern countries
because there are lots of Pakistanis who are living in those countries so people will definitely
be tempted towards such package.3.In “Ufone ghanta” package time of the package should be
extend two more hours so that more & more people will use this service and causing Ufone to
generate more revenues.
Ufone should develop some new franchises in remote areas so that people will get more and
more benefit from it and it will help to increase their customers.
As in Pakistan Youth is almost the 50% of the population so Ufone can take advantage of this
demographic situation and should introduce more and more services and packages that attracts
youth towards it.
Ufone should extend its network coverage area to Northern part of the country as well because
in that part not too many companies are giving services and if Ufone give its service there then
it will definitely attract people and its number of customers will shoot like a rocket.
It should also introduce some packages for internet users on mobile if it do so then many people
will switch from other networks towards it.
If Ufone enhance its voice quality then definitely it would be prefer more by customers.
Ufone should import technological equipment’s from China because they are giving the best
technology at very low rates so it will not only help Ufone to behead technologically but also
will help Ufone to decrease its cost.
Ufone can surprise its competitors by introducing “Ufone kiosk”. These will be ATM like
machines and that will give 24-hour service to Ufone subscriber’s to load the balance just like
they take money from ATM.
6.4. THREATS
As Ufone is cellular company and there is cut throat competition among cellular companies in
Pakistan. There are six other companies also working in Pakistan so Ufone would have to face
some growing competitive pressures.
Pakistan is facing some serious economic problems now days so that would also effect Ufone.
The current recession in market is not good for any kind of business including
telecommunication.
In Balochistan and FATA where Ufone already has network coverage is in danger because of
critical situation and operation being held there. Investment of Ufone is in danger.
Ufone penetrated in the market from 2005 to 2006 quite rapidly but since then itis experiencing
a bit slower growth.
Page 20 of 24
By the arrival of China Mobile Company (ZONG) in cellular industry of Pakistan the Ufone
and other companies now have to face the severe competition. As ZONG is introducing some
various attractive packages of both SMS and calls to attract customers. Ufone have to develop
strategies to counter their strategy and to survive in the market.
The key threat to Ufone is also some adverse Government policies of implementing Tax on
telecommunication industry that will ultimately affect the revenues.
There are some rumors about the shares of PTCL in the market. Being the Subsidiary company
of PTCL, Ufone will also be affected by that.
Telenor is giving higher rumen ration to its employees as compared to Ufone so many of its
skillful and competent employees are going there. That will affect the company’s profitability
in the long run.
Some Pressure groups are protesting on the Towers that are installed in residential areas. Their
opinion is that it is not good for health of people to have such towers near their homes that
cause radiations.
Ufone have to revise the list of subscribers who are legal and authorized. Because now the
Government has warn to take strict action if any company would not keep such record.
Page 21 of 24
Chapter 7: Competitive Advantages
It’s an advantage over competitors gained by offering consumers greater value than
competitor’s offer. Ufone strategies to gain more and more competitive advantages. It also uses
these competitive advantages well enough for its promotion. Currently Ufone is enjoying the
following competitive advantages:
? Lowest overall call rates
? Value added Services (VAS)
? Call block service
? Corporate color
7.1. CHALLENGES
Ufone face many challenges with the ever growing needs of telecommunication. It must remain
profitable with the decreasing economic situation of Pakistan. It must grow as well in these
dark times if it has to remain IN the market. Ufone face very strong competition from its
competitors. It must offer lowest rates with better quality service. New features and services
should be introduced to make its customers loyal, happy and satisfied.
The major challenge they are facing is the gap between urban and rural areas and there coverage
Ufone is majorly targeting the only the needs of urban people and unable to access rural area
due to low coverage of GSM and 3G.
7.2. FUTURE PLANS
Keeping in view the growth potential of the cellular industry there is no option but to be
aggressive in order to remain a potent force in the cellular industry.
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.
In future they have plan to merge UFONE and PTCL as a one Company that would be a great
source of competitive advantage for UFONE.
Page 22 of 24
Chapter 8: Research Methodology
We adopt the following method to collect the data
? Primary Data
? Secondary Data
? Internet
? Broachers
? Questionnaire
8.1. Level of priority
? Customer Satisfaction
? Price
? Quality
? Coverage
8.2. Research Questionnaire
A sample size of 47 is selected to test the consumer satisfaction. Out of 47 there were 15
UFONE user and remaining were other network user. Out of 15 user we are going to check
response. Number of user respond as:
1 For Strongly
Disagree
2 For Disagree 3 For Not Sure 4 For Agree 5 For Strongly
Agree
# Question 1 2 3 4 5 T
1 Whatever mobile operator company you use, Do our
think Service Quality should be improved more?
- 5 1 2 7 15
2 Does the rural area’s customer get same facilities like
urban area’s customer?
2 - 12 1 - 15
3 Do you think the facilities of mobile operator
company are very convenient and flexible?
1 3 2 9 - 15
4 “I am able to fulfill my purposes by taking mobile
operating service” are you agree with this statement?
3 2 - 8 2 15
5 Are telecommunication companies following CSR
activity based on Pakistan perspective?
1 2 3 8 1 15
6 Do you think that you are influenced by CR activities
while you buy the products of any mobile operator
company?
- 2 6 7 - 15
7 How would you rate overall CR activities of your
mobile operator company?
3 - 5 7 - 15
8 Do you think CR activity is better than other
promotional tools in terms of positioning?
1 1 7 6 - 15
9 Do you think their promotional activity is more
effective?
3 1 2 6 3 15
10 Do you think mobile operator company is
contributing in Pakistan economy?
2 3 - 6 4 15
Page 23 of 24
11 Do you think telecommunication is helpful for
education purpose?
2 4 1 1 7 15
12 Do you believe that the price you are paying for your
mobile service charge is it reasonable?
- 2 5 6 2 15
13 Are you willing to adopt 3G technology? 1 3 - 3 8 15
14 Do you agree that 3G Technology is an effective
source of networking?
2 - 3 3 7 15
8.3. Market Share
Out of 47 customer there were 25 Mobilink, 17 Zong, 16
Ufone, 13 Telenor and 9 Warid customers. So Market share
for each is given in the Pie Graph.
8.4. Critical Analysis
Out of sample of 47, 15 customer believe that price is the
important factor which is considered while choosing a mobile
network and 26 customer believe that customer services are the
important factor which is considered while choosing a mobile
network and only 6 customer believe that coverage and location of dealers is important. So in
conclusion customer’s services are very important factor which should be given priority.
8.5. Research Outcomes
? Price, Customer services and coverage are the important factor for the customer to
choose a network.
? Urban People showed satisfied behavior towards Ufone network coverage.
? People were of the view Ufone brand is charging high rates and now a days it is
charging low rates.
? They are offering messaging packages as well as call packages comparatively better
then other networks.
? The advertisement of Ufone attracts the users comparatively more.
? Most of the people viewed that CRM of Ufone is not as effective as other network.
53%
36%
34%
26%
19%
Market Share
Mobilink Zong Ufone
Telenor Warid
Page 24 of 24
Chapter 9: Conclusion
9.1. Suggestion and Recommendation
? Learn to listen to your customer first. Really listen to them ask what you can do help
them. This is most important step in preventing problems and the only way you can
solve complaints if they come up.
? Look at all complaints about your services as an opportunity to improve. Aim to resolve
any complaint quickly and efficiently.
? Establish an environment where great service is recognized and rewarded and poor
services is challenged and rectified.
? Have a fun staff melting where good service elements are discussed and role played.
? Lead by example show respect for every person at every level in your company.
? Do things regularly to improve the workplace
? Be sure your employees are aware of your expectations clean services guidelines and
knowledge of the company’s mission necessary.
? Should encourage new products like Ufone PCO, Broad Band Services.
? It is necessary that the management must continuously develop technical and
managerial skills at all levels and stay abreast of latest technological development in
the industry.
? Use PTCL and Etisalat as a Competitive advantage in backend.
LIST OF SOURCES OF INFORMATION GATHERING:
1. Internet
2. Ufone Service Centre
3. Books Lets
4. News Papers
doc_293342330.pdf
STRATEGIC MARKETING
FINAL REPORT
Submit to: Dr. Muhammad Imran Hanif
Submit By: Group No 9
Syed Mughees Ul Hassan Roll no 55
Maryam Fatima Roll no 56
Syed Faraz Ali Roll no 25
MBA (HRM) 5
th
SEMESTER 2013-16
DATE: November 23, 2015
Mission Statement
To be the Best Cellular choice
of the Customer in Pakistan.
ALFALAH INSTITUTE OF BANKING AND FINANCE BZU, MULTAN.
Page 1 of 24
LIST OF CONTENTS
Chapter 1: The Organization ...................................................................................................... 3
1.1. PROFILE ..................................................................................................................... 3
1.2. HISTORY.................................................................................................................... 4
1.3. NATURE AND SCOPE OF ORGANIZATION ........................................................ 5
1.4. VISION ....................................................................................................................... 5
1.5. MISSION .................................................................................................................... 5
1.6. CORE VALUES ......................................................................................................... 5
1.7. OBJECTIVES/GOALS ............................................................................................... 5
1.8. PRODUCTS LINE ...................................................................................................... 6
Chapter 2: Organization Marketing Mix .................................................................................... 7
2.1. PEOPLE: ..................................................................................................................... 7
2.2. PRICE.......................................................................................................................... 7
2.3. PLACE ........................................................................................................................ 9
2.4. PROMOTION ............................................................................................................. 9
2.5. Products ..................................................................................................................... 10
2.6. PHYSICAL EVIDENCE: ......................................................................................... 10
2.7. PROCESS ................................................................................................................. 11
Chapter 3: PROMOTION MIX ............................................................................................... 12
3.1. ADVERTISING ........................................................................................................ 12
3.2. ADVERTISING BUDGET ....................................................................................... 12
3.3. SALES PROMOTION .............................................................................................. 12
Chapter 4: The Marketing Environment .................................................................................. 14
4.1. POLITICAL: ............................................................................................................. 14
4.2. ECONOMIC FACTORS: ......................................................................................... 14
4.3. SOCIO-CULTURAL: ............................................................................................... 14
4.4. TECHNOLOGICAL FACTORS: ............................................................................. 14
Chapter 5: Market Analysis ..................................................................................................... 16
5.1. Segmentation Analysis .............................................................................................. 16
5.2. Needs/Wants Analysis............................................................................................... 16
5.3. Products/Services Analysis ....................................................................................... 16
Chapter 6: SWOT Analysis ..................................................................................................... 17
6.1. Strengths .................................................................................................................... 17
Page 2 of 24
6.2. WEAKNESSES ........................................................................................................ 18
6.3. OPPORTUNITIES .................................................................................................... 19
6.4. THREATS ................................................................................................................. 19
Chapter 7: Competitive Advantages ........................................................................................ 21
7.1. CHALLENGES ......................................................................................................... 21
7.2. FUTURE PLANS ...................................................................................................... 21
Chapter 8: Research Methodology........................................................................................... 22
8.1. Level of priority ........................................................................................................ 22
8.2. Research Questionnaire ............................................................................................. 22
8.3. Critical Analysis ........................................................................................................ 23
8.4. Research Outcomes ................................................................................................... 23
Chapter 9: Conclusion.............................................................................................................. 24
9.1. Suggestion and Recommendation ............................................................................. 24
LIST OF SOURCES OF INFORMATION GATHERING: ....................................... 24
Page 3 of 24
Chapter 1: The Organization
PTML (Pak Telecom Mobile Limited) is a subsidiary of PTCL
(Pakistan Telecom Company Limited), the largest operator in
Pakistan. PTML was 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 PTCL's privatization, 26% of its shares
were acquired by Emirates Telecommunication Corporation
(Etisalat). Being part of PTCL, the management of Ufone has
also been handed over to Etisalat.
Since its inception, Ufone has focused on the people of Pakistan, empowering them with the
most relevant communication modes and services that enable them to do a lot more than just
talk, at a price that suits them the most.
1.1. PROFILE
Ufone came in the market when it was mainly captured by Mobilink and InstaOne. It was a
difficult task to become a part of such a market in a country like Pakistan where people were
not aware about mobile phones and it was a status symbol at that time. Ufone changed the
whole scenario and as soon as it came in the market it provided with very cheap mobile
connection and calling rates which were offered neither by MOBILINK nor by InstaOne.
Along with the claim of lowest call rates, clear sound and best network, Ufone offered its
customers simplified tariffs with no hidden charges. With a strong and uniquely humorous
communication direction that has now become Ufone's signature across all advertising media,
Ufone gives its customers many reasons to smile.
During the year July 2005 to June 2006, 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. This customer focus and best offering has allowed Ufone to build a
subscriber base of over 20 million in less than a decade. Ufone has network coverage in 10,000
locations and across all major highways of Pakistan. Ufone expanded its coverage and has
added new cities and highways to its coverage network. The company has also been awarded
a new License for providing cellular services in Azad and Jammu Kashmir and in northern
areas.
Ufone currently caters for International Roaming to more than 260 live operators in more than
150 countries including Saudi Arabia , United kingdom, UAE, Singapore, Portugal, Kuwait
and others with lowest rates, featuring no security deposit and activation charges. Ufone also
offers Pakistan's largest GPRS & BlackBerry Roaming coverage available with more than 150
Live Operators across 105 countries. More recently, Ufone has become a focused and intensive
leader in VAS, constantly introducing innovative services, which have been the first of their
kind in the Pakistani cellular industry.
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 2,579k in June 2005 to 7,487k in June 2006. Ufone currently caters
for international roaming to more than 230 live operators across 130 countries and introduced
Page 4 of 24
International roaming facility for prepaid subscribers in Saudi Arabia and United Arab
Emirates with lowest rates, featuring no security deposit and activation charges.
3G License Auction PTA was willing to auction 3G license as early as 2008, as it had
completed the framework for 3G Mobile Phone Operations in Pakistan. Due to Government's
negligence and lack of focus, the matter of the auction dragged on, being raised again in 2012
and 2013 and finally auctioned on 23 April 2014 and the 3G licenses were auctioned to Ufone
(5MHZ).
On May 2, 2014, Ufone started its 3G services on trial bases in major cities of Pakistan and on
May 23, 2014, it launched its services commercially and launched its 3G packages for both its
Prepaid and Postpaid customers.
1.2. HISTORY
In 1990, Pakistan introduced its first mobile phone service called “PAKTEL”. After eleven
years in January 2001, a new cellular company with GSM technology came into the market
and they named it Ufone.
The government of Pakistan granted them the license of Pak Telecom mobile limited to operate
GSM 9000 all around Pakistan. Ufone succeeded to establish itself in the market by providing
quality service at low rates. After its opening, initially they started their service in major cities
like Rawalpindi, Islamabad, Karachi and Lahore and on major highways. Later the service
expanded to other major cities like Peshawar, Quetta and different towns.
Ufone invested around $ 65 million to setup its modern technical infrastructure to provide high
quality crystal clear voice and fast data transmission. Ufone targeted the middle class, by
introducing low rates and different packages with Urdu names like Jazba etc. to attracted lower
and middle class people. Ufone has expanded its customer support in a very organized manner
with a planned network of dealers, outlets for people convenient. Ufone is committed to care
for its customers even after they have acquired a new connection. Ufone not only focused on
the technical capabilities, but to provide subscribers a convenient to get connections and
services. Ufone recently started GPRS through which users can connect themselves to the
global village via Internet, also introduced multimedia messaging services and worldwide SMS
at flat rates. Not only SMS but also provides Ufone Info service through which user can get
latest information about news, sports, religion, horoscope, stock exchange etc. even live sports
updates.
The tariff packages have been designed keeping in mind the requirements of every segment of
the society may that be a housewife, a taxi driver, a trader or a student. Ufone started its
operation from Islamabad on 29th January 2001. Cellular industry performance in Pakistan
before the launch of Ufone was quite dismal, with one of the lowest population penetration
rates in the whole region.
Ufone’s strategy from the day one was to change this scenario and ensure that mobile phones
are turned into an everyday business and personal communication tools for all. This approach
brought about a revolution in the market; increasing its size fivefold in a mere two years.
Ufone’s own performance in these two years has been exemplary, as it surpassed all financial
and marketing goals. Despite Ufone’s strategy to provide a high standard of service rather than
Page 5 of 24
increasing subscriber base without capacity, it has achieved a substantial market share in a
market ten years older than itself.
1.3. NATURE AND SCOPE OF ORGANIZATION
The telecom market's growing rate in Pakistan is higher than any Asian country. Ufone offers
lower rates and better network then other already established cellular companies. All living
standards have been captured by Ufone, like Students, Labor and Businessmen, etc. Ufone aims
to provide with wider coverage, superior connectivity, clear signals & voice quality to their
valued customers.
1.4. VISION
“To be the leading telecommunication service provider in Pakistan by offering innovate
communication solutions for our customers while exceeding shareholder value & employee
expectation.”
1.5. MISSION
"Ufone, it's all about U! We are where you want to be. At Ufone we aim to provide you with
wider coverage, superior connectivity, clear signals &voice quality. Wherever you are, Ufone
keeps you connected."
1.6. CORE VALUES
? Leadership with Passion
? Teamwork & Innovation
? Entrepreneurship, Freedom with Responsibility
? Humility in Relationships
? Commitment with Fun
1.7. OBJECTIVES/GOALS
As a common practice big organizations divide their long term mission into short term goals
and objectives. To attain these goals and objectives they develop strategies accompanied by
policies, procedures, programs, rules and regulations. The goals and objectives have to be
achieved collectively or they can be related to a specific department. However broadly
speaking, the goals and objectives of Ufone are as follows:
1. 100% achievement in given target of sales.
2. To penetrate into the market with existing products e.g. prepaid and postpaid packages
as per the segments and to build a front line services selling company image in public.
3. Concentrate to generate high quality sales and help to build trust, loyalty and sense of
affection among the customers by performing and extending extra services to them.
4. To do all possible efforts to outclass competitor’s activities from the market and to
achieve the company’s goals by representing excellently as a true Pakistani company.
To sustain customer base and maintain quality to avoid sale returns.
5. To ensure the following personal excellence:
? Product and company excellence.
? Coordination, Cooperation and reporting.
? Professionalism.
? Time Management
Page 6 of 24
? Office Management
1.8. PRODUCTS LINE
Ufone offers a variety of products and services to its customers. In each product it offers a
variety of different packages for its different segment of users. The following are the different
products of Ufone:
? Post paid
Postpaid services are advertised by the name “Post pay”. These services are largely
embattled towards the business community of the country but having the packages
of middle class also.
? Pre-paid
Ufone markets its prepaid services as “Prepay”. Ufone Prepay is more reasonable.
Its principal market is planned towards the teen agers and students.
? Blackberry
? UPasa (Agent Banking)
The most widely used Ufone brand is the Pre-paid brand through which it targets its main
segment customers that is the youth of PAKISTAN. It offers a variety of services for its pre-
paid users such as:
? 3G
? UPayment (Online Bill Payment)
? Power SIM
? WAP
? International Roaming
? Voice Mail
? Call Management
? Messaging
(All information taken from Ufone customer service center)
On the other hand it also provides a lot of different packages for calls and short message service.
These are as follows:
? Tension Free Package
? Ufone hourly Package
? Super hourly Package
? 5 KA 15
? Public Demand
? Life Plus
? U Circle Life Plus
? U
th
Package
? Bundle offers
? Super 5 offer
? 30 Paisa offer
? Din Bhar Offer
? Location Based Offers
Page 7 of 24
Chapter 2: Organization Marketing Mix
It comprises of 7P'S of marketing. They are as follows
2.1. PEOPLE:
In this part of the strategy, different segments and class of people will be discussed. From a
telecommunication point of view, the following will be normally being large segments of
people to target.
? Corporate Class Entrepreneurs (Business class)
? Working class Youth (ageing between 15 & 22)
? Government organizations
These are mainly 5 segments in which mobile users could be divided. As for Ufone, at first it
tried to focus on the common man such as the labor class to give an idea and concept that
mobile phone is affordable for all but after some time it took a strategic shift and now it mainly
focuses on the youth of Pakistan. Through its advertisements it tries to attract youngsters,
school going and college going crowd.
On the other hand, it does not have a lot to offer people from professional field and it never
spends heavily on its advertisements for corporate class or business class.
The main competitors of Ufone in this regard are Telenor and ZONG which is a china mobile
subsidiary in PAKISTAN. The advertisements of Telenor are also very colorful and attractive
for the youth and ZONG from the very beginning came with the idea of attracting youth of the
country.
2.2. PRICE
Customers 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 differentiation of Ufone. Ufone is the one who around a year
back offered the cheapest rates on-network and off-network. Now it's a strong fight between
ZONG and Ufone and new rates keep on publishing every month and at times every week.
Ufone strategizes 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 day's thus compelling people to use Ufone for international calling.
It also offered hourly call rates in Ramadan when people were least likely to avail the offer that
much that it might prove unprofitable for Ufone as in Ramadan people in PAKISTAN mostly
fast and mostly people won't talk for hours during their fasting but UFONE made people talk
with its extremely special offers and packages.
It was a fantastic strategy to beautify the brand image in term of pricing in customer's minds as
well as remain profitable in doing so. Ufone follows market penetration pricing strategy and
dynamic pricing strategy to meet the customer needs and ever changing price competition.
Ufone also provides with the best SMS rates. They are as follows:
? PACKAGE 1 165SMS @ RS 25+TAX/MONTH
? PACKAGE 2 500SMS @ RS 50+TAX/MONTH
? PACKAGE 3 1000SMS @ RS 75+TAX/MONTH
Page 8 of 24
? PACKAGE 4 8000SMS @ RS 80+TAX/MONTH
? PACKAGE 5 UNLIMITED SMS @ RS 3+TAX/DAY
Ufone provides the cheapest messages rates in Pakistan. The other company that is close to
Ufone is Telenor. Its brand DJUICE provides its customers with the following packages:
? PACKAGE 1 1000SMS @ RS 8.76+TAX/WEEK
? PACKAGE 2 3500SMS @ RS 29+TAX/WEEK
? PACKAGE 3 7500SMS @ RS 69+TAX/WEEK
? PACKAGE 4 300SMS @ RS 3.71+TAX/WEEK
Mobilink brand JAZZ provides many different packages such as JAZZ BUDGET, JAZZ
EASY, JAZZ OCTANE etc. Jazz Octane provides the cheapest SMS rated that is just RS
0.20+TAX/SMS and daily charges of RS 1.00
Still new in market the brand of ZONG launched by CHINA MOBILE even comes to be a
tough competitor as it offers services keeping different types of users in mind. ZONG has the
package best suited for customer requirements while keeping the affordability in check.
Daily SMS PACKAGES
500 SMS & 100 MMS for whole day only for Rs. 3.99 On exceeding 500 SMS, additional
SMS to be charged as per tariff plan
This bundle would be valid for 1 day only * In order to re-subscribe your number should be
active and you must have sufficient balance available
Weekly Bundle
1000 SMS for whole week only for Rs. 10
On exceeding 1000 SMS, additional SMS to be charged as per tariff plan
This bundle would be valid for 7 days only
In order to re-subscribe your number should be active and you must have sufficient balance
available
Fortnightly Bundle
500 SMS / day for 15 days for only Rs. 50
On exceeding 500 SMS a day, additional SMS to be charged as per tariff plan
This offer would be valid for 15 days only
In order to re-subscribe your number should be active and you must have sufficient balance
available
Monthly Bundle
500 SMS / day for 30 days for only Rs 80
On exceeding 500 SMS a day, additional SMS to be charged as per tariff plan
This offer would be valid for 30 days only
Page 9 of 24
Uwon Pakege:
VOICE Call
Ufone to Ufone Rs 2 / Min 24 Hrs
Ufone to other mobile networks and PTCLRs 2 / Min 24 Hrs
Ufone to International Standard rates apply 24 Hrs
SMS
Ufone to Ufone Rs 1.75 inclusive of tax 24 Hrs
Ufone to other networks Rs 1.75 inclusive of tax 24 Hrs
International Rs 5.00 / SMS 24 Hrs
Super Sasta Package:
VOICE Call
Ufone and Ufone85 Paisa / 30 Sec 24 Hrs
Ufone to other mobile networks and PTCL85 Paisa / 30 Sec 24 Hrs
Ufone to international Standard rates apply 24 Hrs
SMS
Ufone to Ufone1.75 inclusive of tax
Ufone to other networks1.75 inclusive of tax
International Rs 5.00 / SMS
2.3. PLACE
Place plays a very important part in the distribution and promotion of services.
Competitors of Ufone are seeking to penetrate into places where others haven't reached. All
cellular service provider companies in Pakistan are trying their best to drastically widen their
network & coverage in every area. Mobilink has this edge in place excellence because it is the
pioneer in cellular telephonic field.
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.
2.4. 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 strategizes to carry out promotion
in order to increase its market share.
Page 10 of 24
? Advertising
? Advertising Budget
? Sales Promotion
? Public Relations
? Direct Marketing
2.5. Products
Ufone offers a variety of products and services to its customers. In each product it offers a
variety of different packages for its different segment of users. The following are the different
products of Ufone:
? Post paid
? Pre-paid
? Blackberry
? 3G
The most widely used Ufone brand is the Pre-paid brand through which it targets its main
segment customers that is the youth of PAKISTAN. It offers a variety of services for its pre-
paid users such as:
? Internal Excess
? Online Billing Payment
? Power SIM
? WAP
? International Roaming
? Voice Mail
? Call Management
? Messaging
(All information taken from Ufone customer service center)
On the other hand it also provides a lot of different packages for calls and short message service.
These are as follows:
? Tension Free Package
? Ufone hourly Package
? Super hourly Package
? 5 KA 15
? Public Demand
? Life Plus
? U Circle Life Plus
2.6. PHYSICAL EVIDENCE:
It is a very important aspect of marketing. In this part the most important thing is customer
service. One of the examples of physical evidence of customer service that we get is billing.
Ufone has a very effective and easy process of billing for its post-paid customers. It can be
done through credit cards, by using a scratch card, or by physically going to the outlets of
Ufone which are now in big numbers.
Page 11 of 24
For pre-paid customers it is extremely easy to get there recharge done. It can be done by
purchasing cards with sealed numbers of Rs.100, 500 and 1000 or easy load of any amount of
more than Rs.10 is possible from many outlets of Ufone and even other small shops.
It also has a customer service call center where customers can call 24hours to gain any
information about Ufone packages or to report any problem that they are going through.
2.7. PROCESS
For any organization it is extremely important to know what segment of customers they want
to target, what are their aim and objective and what they want to achieve. In order to achieve
what they desire they will than make a process to attract people from that particular segment
of market.
Each organization has a different way and thinking with which they formulate a process to
market their product. In case of Ufone it is very evident that through their customer gathering
process they are trying to achieve high market share amongst youth of PAKISTAN. This is
currently the most growing market segment in telecommunication as all the youngsters as
described above are privileged to use low rate offers to talk for hours and message as much as
they want.
Apart from normal advertisements and marketing strategies, Ufone also advertises on the
internet through www.facebook.com (a website on internet used mostly by teen agers to
enhance their friends circle and share their personal information with others), newspapers,
magazines etc. and try to gather as much market share as they can through these processes. It
also puts up its stalls in big carnivals, tries a lot of other processes to market its product and to
create awareness of its products everywhere.
Page 12 of 24
Chapter 3: PROMOTION MIX
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 strategizes to carry out promotion
in order to increase its market share.
3.1. ADVERTISING
It is often noticed that Ufone mainly makes new ads when it has to inform the customers about
new services. Apart from that it heavily promotes its brands and products through its
advertisements on television, radio and newspapers seeking to persuade people to purchase
their service or switch to their connection from other mobile network. It mainly advertises for
pre-paid customers but occasionally it also advertises its other brands such as post-paid,
blackberry and GPRS.
3.2. ADVERTISING BUDGET
Ufone is a heavy spender on advertising in electronic media as well as other media. They are
developing and playing new advertisements on electronic media not even with a month's gap
or so.
A single Ufone advertisement played 15-20 times per day on a TV channel costs millions
varying with the time of day when it is played. Ufone spends 20% of its profit on advertising.
From a special source in Jung Group which owns one of the leading news channels in
PAKISTAN it came to my knowledge that Ufone spends a monthly amount of 20 million on
advertisements. This amount is what Ufone pays to Geo channel alone. There are also channels
such as ARY, INDUS, EXPRESS etc. on which Ufone advertisements are shown day and
night.
3.3. SALES PROMOTION
Sales promotions are short term incentives to encourage the purchase or sale of a product or
service.
Ufone carries out activities to boost its sales. It follows all four of the promotion budgeting
methods via affordable method, percentage of sales method, competitive parity method and
objective & task method.
Ufone carried out contest for cricket talent hunt in the year 2002. A renowned Pakistani
cricketer SHOAIB AKHTAR was used as patron for this contest. However this contest didn't
do much good to Ufone's image or sales. But Ufone holds future plans to carry out such
activities in more effective and profitable ways.
All the cellular services are now offering premiums for their customers. Similarly this premium
is also offered by Ufone when a customer doesn't use his/her mobile connection for up to 3-6
months. Premium is given in the form of extra credit balance delivered to customer's numbers
for free
Page 13 of 24
Ufone also offered free trip to Dubai. It was Ufone's first Eid offer. Every time a user makes
any international call of 5 minutes or longer than 5 minutes, it enters the lucky draw to win a
return ticket to Dubai. The more calls made by users, the more chance they had to win.
PUBLIC RELATIONS
Ufone has always tried to maintain its public relations. It tries to keep all its customers happy
by sending greeting messages on all occasions such as RAMZAN, EID and other holy and
important days in the country. It has also launched its "Hajj Guide" service.
DIRECT MARKETING
Ufone employ on-road umbrella franchises where they directly market and sell their
connections and Sims. Apart from that in many different cities of PAKISTAN, Ufone has also
made it posters on auto rickshaws which are a unique way of direct marketing.
Ufone has intensive promotion in cities, but it is now improving upon its promotion in rural
areas as well.
Page 14 of 24
Chapter 4: The Marketing Environment
In Marketing Environment we conduct PEST Analysis in which P stands for Political, E stands
for economical, S stands for social and T stands for technological analysis of industry with
respect to their environment. The organization's advertising surroundings is made up from:
? The organization inner environment e.g. staff (or internal customers), office,
technology, wages and finance, etc.
? The organization external-environment e.g. our external customers, agents and
distributors, suppliers, our competitors, etc.
? The country forces affecting the environment e.g. political forces, Economic forces,
Socio-cultural forces, and Technological forces. These are known as PEST factors.
4.1. POLITICAL:
Political environment of Pakistan is stable in the current situation and country is not
progressing in terms of economic growth that was expected.
Environment is investor non-friendly & telecommunication sector is under regulation.
Before WTO implementation government already took steps in regulation of
telecommunication sector.
4.2. ECONOMIC FACTORS:
Marketers should consider long term and short term state of a trading market
Inflation is being controlled by state bank and under strict eyes but unemployment rate is going
up & up with the increase of level of poverty
Economic instability is worsening day by day as liquidity crunch is prevailing in the world
4.3. SOCIO-CULTURAL:
As Pakistan is an Islamic country and people are very strict in case of Islam anything against
the philosophy of Islam on either print or electronic media are treated as against Pakistan.
Most of the people dislike anything extra-ordinary or something which sabotage their culture
or subculture.
Companies who are targeting upper-end of market mostly published and aired their
advertisement in English language.
In metropolitan cities women are doing work along with their other responsibilities but other
than metropolitan cities it is difficult for women to convince their parents and spouses for works
4.4. TECHNOLOGICAL FACTORS:
Companies have technology with which they can compete in the Pakistan and now companies
are investing in their infrastructure to not only expand but also to upgrade their existing
structure.
Currently all companies except ZONG & INSTAPHONE are providing Multi-media
Messaging Services (MMS), General Packet Radio Service (GPRS), Virtual Private Network
(VPN), Pocket Stocks, Conference Calling, Wallpapers Animated pictures Polyphonic ring
tones (WAP), and Voice Mail at low price and Ufone is proving an addition feature that one
can see TV channels on their cell.
Page 15 of 24
Ufone shifted its whole network from 900 MHz to 1800 MHz offer Value-Added Services like
General Packet Radio Service (GPRS), Multi-media Messaging Services (MMS) and Virtual
Private Network (VPN) etc.
Page 16 of 24
Chapter 5: Market Analysis
5.1. Segmentation Analysis
Cellular service market is a diverse set of people. Ufone as well as other cellular service
companies segment their market on four bases: - economy, age, gender & occupation.
I. ECONOMY: Upper class, Middle class, socio-economic class, lower class
II. AGE: Teenagers, youngsters, middle age, aged people
III. GENDER: Male & Female
IV. OCCUPATION: Corporate class, Business class, working class etc.
Target Market
The market segments of UFONE is targeting include:
? Tech-savvy youth
? Business users (due to the their higher average revenue per user)
? First-time subscribers in remote and rural areas
? Previously ignored segments, for instance housewives and women
The ads are vibrant and colorful, conveying a sense of excitement and empowerment.
However, the pretty picture these ads paint is separated from the real world where poor cellular
service has led PTA to announce that punitive action will be taken if problems persist.
5.2. Needs/Wants Analysis
Ufone has always considered the ever growing needs of low call rates and quality service. It
has provided its customers their needed packages and has introduced such brands & packages
that meet customer’s latent needs as well. For example, 5 ka 15 is result of a latent need of
women of our society. They plan to make a short call but it becomes a long one
unintentionally due to gossips and chit chats.
5.3. Products/Services Analysis
Ufone is providing mobile connection service in Pakistan. Ufone is giving lowest call and SMS
packages. Ufone is currently a mobile company that advertising its packages regularly and
made ad of every new package Ufone launch. Ads of Ufone is bit funny. Sometimes Ufone ads
are direct taunts to the opposite mobiles companies. Ufone is trying to provide best packages
and launches the packages that are youth focused.
Page 17 of 24
Chapter 6: SWOT Analysis
6.1. Strengths
Ufone has network coverage in more than 750 cities, towns and across all major highways of
the country.
Ufone provides International Roaming facility with more than 150 international operators
across 79 countries.
Ufone is proud to have an efficient and friendly customer service through 21company-owned
Sales & Customer Service Centers and nearly 250 franchisees across the country.
Ufone has always believed in a solid commitment to growth, security and reliability. Therefore,
Ufone has always balanced its expansion efforts and quality of service. With a total current
investment of $400 Million.
Ufone is offering the service of Multi-media Messaging Service (MMS).
As mobile users in the country have reached over 78 million at a very rapid pace, Ufone has
maintained itself as the 3
rd
largest cellular operator in Pakistan with a subscriber base of around
16.5 million and a market share of nearly 25%. Ufone has seen a subscriber growth rate of over
200% in the last year, and since the start of 2005 Ufone added nearly 5 million subscribers onto
its network. A remarkable
Achievement indeed, especially considering the fact that two new international players also
entered into the market in 2005.
While keeping its tradition of being the trend setter in the industry, Ufone changed the image
of mobile phones from a luxury only affordable by the elite, to a necessity affordable by the
common man.
Ufone increased its focus on the youth segment (which comprises 50% of the population), with
the Prepay brand. Ufone has the ability to retain its existing customer base with a high level
of customer satisfaction via optimum network service and a 24 hour call center facility.
It has the postpaid service that is normally to attract the Business class people. Most of the
business and elite class people use postpaid and other services offered by the Ufone.
Ufone has a subscriber base of 22.7 million as of JUNE 2015.
Ufone was the first cellular Company in Pakistan that introduced the service of GPRS and
hence took the competitive advantage.
Ufone has some exciting and energetic SMS packages that made SMS almost free. They are
offering Rs. 25, Rs.50, Rs.100, Rs. 150 SMS packages which its subscribers are really loving
it.
Ufone has some very exciting and low call packages like “5 KA 15”, “u-one”, ucircle”, “Ufone
GHANTA”, “Ufone has some very exciting and low call packages like “5 KA 15”, “u-one”, u
circle”, “Ufone life package “and “ U
th
Package” etc. which attracted lots of customers towards
it and many other cellular company users are also switching to it.
Page 18 of 24
Ufone postpaid is also offering black berry set that is useful and tempting for the Business
class.
Ufone currently caters for international roaming to more than 195 live operators across 119
countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia,
United Kingdom, United Arab Emirates, Singapore, Portugal and Kuwait with lowest rates,
featuring no security deposit and activation charges. GPRS Roaming facility is available with
more than 75 Live Operators across 59 countries.
6.2. WEAKNESSES
Ufone does not have the proper lists of its customers. It has the list but this list is not authentic
which is increasing the unauthorized use of its sim especially pre pay. Ufone have to take
serious steps to properly list its customers to ensure that there is no misuse.
It has many franchises in the whole country but as its customers are increasing day by day so
its present franchises are not enough to fulfill the needs of its customers.
Ufone also face problems and its network get jammed on special occasions like EID,
Christmas, New Year etc.
Ufone has the problem of voice quality. Though its coverage area is vast and it covers more
than 750 towns and cities in Pakistan but the voice quality is not as good as it should be.
Ufone though has some unique and distinct services but it has not yet given many innovative
services as compared to other cellular companies.
Ufone was the first to introduce the SMS packages but their packages are not flexible enough
and its charges are only on monthly bases while it should be on both monthly and daily basis.
Call rates from UFONE to UFONE is very cheap but to other networks its rates are expensive.
Its coverage on Southern part of Pakistan is quite good but in northern areas its coverage is
a bit poor.
In Ufone web support is not available.
Its customer’s service staff need training because at many franchises their employees are have
been complained about behaving rudely.
If Ufone Company have to progress and grow in market it has to improve its advertising
campaign. Its advertisements are not good and eye catching.
Being the part of PTCL it has to face many problems like strike by employees etc.
When Ufone came into the seen in Pakistan cellular market Mobilink was already prevailing
in the market and it was all Mobilink monopoly that time. Though with the passage of time
Ufone took many customers of Mobilink but still Mobilink has large number of users because
it was first to Pakistan’s cellular market and this is the competitive disadvantage to Ufone.
Ufone is plagued with some internal problems like when it is privatized to Etisalat being the
part of the PTCL many employees were not happy with the pay scale that they were offering.
Page 19 of 24
6.3. OPPORTUNITIES
Ufone could develop some new and innovative services to attract customers and some of the
suggestions are as under which will help them to increase their revenues:
1. It should introduced International SMS packages like local SMS. Already Ufone is offering
lowest International SMS rates but if they introduce some package like this it will get lots and
lots of success.
2. They should also introduce some International call packages to Middle Eastern countries
because there are lots of Pakistanis who are living in those countries so people will definitely
be tempted towards such package.3.In “Ufone ghanta” package time of the package should be
extend two more hours so that more & more people will use this service and causing Ufone to
generate more revenues.
Ufone should develop some new franchises in remote areas so that people will get more and
more benefit from it and it will help to increase their customers.
As in Pakistan Youth is almost the 50% of the population so Ufone can take advantage of this
demographic situation and should introduce more and more services and packages that attracts
youth towards it.
Ufone should extend its network coverage area to Northern part of the country as well because
in that part not too many companies are giving services and if Ufone give its service there then
it will definitely attract people and its number of customers will shoot like a rocket.
It should also introduce some packages for internet users on mobile if it do so then many people
will switch from other networks towards it.
If Ufone enhance its voice quality then definitely it would be prefer more by customers.
Ufone should import technological equipment’s from China because they are giving the best
technology at very low rates so it will not only help Ufone to behead technologically but also
will help Ufone to decrease its cost.
Ufone can surprise its competitors by introducing “Ufone kiosk”. These will be ATM like
machines and that will give 24-hour service to Ufone subscriber’s to load the balance just like
they take money from ATM.
6.4. THREATS
As Ufone is cellular company and there is cut throat competition among cellular companies in
Pakistan. There are six other companies also working in Pakistan so Ufone would have to face
some growing competitive pressures.
Pakistan is facing some serious economic problems now days so that would also effect Ufone.
The current recession in market is not good for any kind of business including
telecommunication.
In Balochistan and FATA where Ufone already has network coverage is in danger because of
critical situation and operation being held there. Investment of Ufone is in danger.
Ufone penetrated in the market from 2005 to 2006 quite rapidly but since then itis experiencing
a bit slower growth.
Page 20 of 24
By the arrival of China Mobile Company (ZONG) in cellular industry of Pakistan the Ufone
and other companies now have to face the severe competition. As ZONG is introducing some
various attractive packages of both SMS and calls to attract customers. Ufone have to develop
strategies to counter their strategy and to survive in the market.
The key threat to Ufone is also some adverse Government policies of implementing Tax on
telecommunication industry that will ultimately affect the revenues.
There are some rumors about the shares of PTCL in the market. Being the Subsidiary company
of PTCL, Ufone will also be affected by that.
Telenor is giving higher rumen ration to its employees as compared to Ufone so many of its
skillful and competent employees are going there. That will affect the company’s profitability
in the long run.
Some Pressure groups are protesting on the Towers that are installed in residential areas. Their
opinion is that it is not good for health of people to have such towers near their homes that
cause radiations.
Ufone have to revise the list of subscribers who are legal and authorized. Because now the
Government has warn to take strict action if any company would not keep such record.
Page 21 of 24
Chapter 7: Competitive Advantages
It’s an advantage over competitors gained by offering consumers greater value than
competitor’s offer. Ufone strategies to gain more and more competitive advantages. It also uses
these competitive advantages well enough for its promotion. Currently Ufone is enjoying the
following competitive advantages:
? Lowest overall call rates
? Value added Services (VAS)
? Call block service
? Corporate color
7.1. CHALLENGES
Ufone face many challenges with the ever growing needs of telecommunication. It must remain
profitable with the decreasing economic situation of Pakistan. It must grow as well in these
dark times if it has to remain IN the market. Ufone face very strong competition from its
competitors. It must offer lowest rates with better quality service. New features and services
should be introduced to make its customers loyal, happy and satisfied.
The major challenge they are facing is the gap between urban and rural areas and there coverage
Ufone is majorly targeting the only the needs of urban people and unable to access rural area
due to low coverage of GSM and 3G.
7.2. FUTURE PLANS
Keeping in view the growth potential of the cellular industry there is no option but to be
aggressive in order to remain a potent force in the cellular industry.
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.
In future they have plan to merge UFONE and PTCL as a one Company that would be a great
source of competitive advantage for UFONE.
Page 22 of 24
Chapter 8: Research Methodology
We adopt the following method to collect the data
? Primary Data
? Secondary Data
? Internet
? Broachers
? Questionnaire
8.1. Level of priority
? Customer Satisfaction
? Price
? Quality
? Coverage
8.2. Research Questionnaire
A sample size of 47 is selected to test the consumer satisfaction. Out of 47 there were 15
UFONE user and remaining were other network user. Out of 15 user we are going to check
response. Number of user respond as:
1 For Strongly
Disagree
2 For Disagree 3 For Not Sure 4 For Agree 5 For Strongly
Agree
# Question 1 2 3 4 5 T
1 Whatever mobile operator company you use, Do our
think Service Quality should be improved more?
- 5 1 2 7 15
2 Does the rural area’s customer get same facilities like
urban area’s customer?
2 - 12 1 - 15
3 Do you think the facilities of mobile operator
company are very convenient and flexible?
1 3 2 9 - 15
4 “I am able to fulfill my purposes by taking mobile
operating service” are you agree with this statement?
3 2 - 8 2 15
5 Are telecommunication companies following CSR
activity based on Pakistan perspective?
1 2 3 8 1 15
6 Do you think that you are influenced by CR activities
while you buy the products of any mobile operator
company?
- 2 6 7 - 15
7 How would you rate overall CR activities of your
mobile operator company?
3 - 5 7 - 15
8 Do you think CR activity is better than other
promotional tools in terms of positioning?
1 1 7 6 - 15
9 Do you think their promotional activity is more
effective?
3 1 2 6 3 15
10 Do you think mobile operator company is
contributing in Pakistan economy?
2 3 - 6 4 15
Page 23 of 24
11 Do you think telecommunication is helpful for
education purpose?
2 4 1 1 7 15
12 Do you believe that the price you are paying for your
mobile service charge is it reasonable?
- 2 5 6 2 15
13 Are you willing to adopt 3G technology? 1 3 - 3 8 15
14 Do you agree that 3G Technology is an effective
source of networking?
2 - 3 3 7 15
8.3. Market Share
Out of 47 customer there were 25 Mobilink, 17 Zong, 16
Ufone, 13 Telenor and 9 Warid customers. So Market share
for each is given in the Pie Graph.
8.4. Critical Analysis
Out of sample of 47, 15 customer believe that price is the
important factor which is considered while choosing a mobile
network and 26 customer believe that customer services are the
important factor which is considered while choosing a mobile
network and only 6 customer believe that coverage and location of dealers is important. So in
conclusion customer’s services are very important factor which should be given priority.
8.5. Research Outcomes
? Price, Customer services and coverage are the important factor for the customer to
choose a network.
? Urban People showed satisfied behavior towards Ufone network coverage.
? People were of the view Ufone brand is charging high rates and now a days it is
charging low rates.
? They are offering messaging packages as well as call packages comparatively better
then other networks.
? The advertisement of Ufone attracts the users comparatively more.
? Most of the people viewed that CRM of Ufone is not as effective as other network.
53%
36%
34%
26%
19%
Market Share
Mobilink Zong Ufone
Telenor Warid
Page 24 of 24
Chapter 9: Conclusion
9.1. Suggestion and Recommendation
? Learn to listen to your customer first. Really listen to them ask what you can do help
them. This is most important step in preventing problems and the only way you can
solve complaints if they come up.
? Look at all complaints about your services as an opportunity to improve. Aim to resolve
any complaint quickly and efficiently.
? Establish an environment where great service is recognized and rewarded and poor
services is challenged and rectified.
? Have a fun staff melting where good service elements are discussed and role played.
? Lead by example show respect for every person at every level in your company.
? Do things regularly to improve the workplace
? Be sure your employees are aware of your expectations clean services guidelines and
knowledge of the company’s mission necessary.
? Should encourage new products like Ufone PCO, Broad Band Services.
? It is necessary that the management must continuously develop technical and
managerial skills at all levels and stay abreast of latest technological development in
the industry.
? Use PTCL and Etisalat as a Competitive advantage in backend.
LIST OF SOURCES OF INFORMATION GATHERING:
1. Internet
2. Ufone Service Centre
3. Books Lets
4. News Papers
doc_293342330.pdf