INTERNSHIP REPORT ON UFONE

SUPERVISED BY SIR SHAHBAZ

PREPARED BY SANA ULLAH ROLL NUMBER 19045 MBA (MARKETING) 2009-11

DEPARTMENT OF MANAGEMENT SCIENCES HAZARA UNIVERSITY

INTERNSHIP REPORT ON UFONE

Internship Report Submitted To the Department Of Management Sciences for the Partial Fulfillment of the Requirements for the Degree of Master of Business Administration

DEPARTMENT OF MANAGEMENT SCIENCES HAZARA UNIVERSITY

COMMITTEE APPROVAL FOLIO

External Assessor

Mr.__________________________________Signature___________________

Supervisor

Mr.__________________________________Signature___________________

Chairman

Mr.__________________________________Signature___________________

DEPARTMENT OF MANAGEMENT SCIENCES HAZARA UNIVERSITY

DEDICATION

My parents who shaped my life and made me what I am today, my teachers who have been my source of inspiration, my siblings and friends who support and encourage me in my endeavors, And to the greatest person (SAWW) who brightened the world with the light of his wisdom and knowledge.

ACKNOWLEDGEMENT

Being as a student of Master in any discipline report writing is a very difficult job for any student. But this becomes easy only on the basis of cooperation of the concerned staff. I am very much thankful to the honorable manager, who really co-operated with me in this regard.

I would also like to thank the other staff members of Ufone Franchise Mingora Swat and especially the teachers of my department who have greatly helped me in building my knowledge.

I owe very much too so many people whose help and support at different stages of my work enabled me to write this report.

First of all I would like to thank Mr. Asad whose help made it possible for me to have an internship period in Ufone Mingora Swat. I would also express my gratitude to my friend, Mr. Irfan Ullah whose kind words are always guidelines for me. I feel proud to also mention my father, Janab Ali Khan whose endless support and encouragement enabled me to do my MBA.

Also I am thankful to our coordinator Sir Shahbaz who is not only a good teacher but a good friend as well. His kind assistance made it possible to complete our MBA.

SANA ULLAH II

Table of Contents
Dedication Acknowledgement Table of Contents Executive Summary Chapter 1
1.1 1.2 1.3 1.4 1.5

I II III VI 01
01 02 02 02 02

Introduction of Study

Background of the Study Purpose of Study Scope of Work Methodology of the Report Scheme of the Report

Chapter 2
2.1 2.2 2.3 2.4 2.5 2.6

Overview of Ufone

05
05 05 07 08 09 10

History of Pakistan Telecommunication Authority Pakistan Telecommunication Company Ltd History of PTML Ufone Mission Statement of Ufone Overview of Ufone Management Profile of Ufone

Chapter 3 Profiles of Different Departments

3.1 3.2 3.3 3.4 3.5 Human Resource Management Technology Department Finance Department Audit Department Marketing Department 3.5.1 3.5.2 Marketing Department Marketing Strategies 3.5.2.1 Market Segmentation 3.5.2.2 Target Markets 3.5.2.3 Positioning III

15
15 16 17 18 19 19 20 20 21 22

3.5.2.4 Differentiation 3.5.2.5 Customer Relationship 3.5.2.6 Total Market Orientation 3.5.2.7 Competitors 3.5.3 3.5.4 3.5.5 Market Share Advertising Objectives Ufone Brand 3.5.5.1 Prepaid 3.5.5.2 Post Pay 3.5.6 BlackBerry 3.5.7 Recharge Option 3.5.8 Detail of Prepaid Calls 3.5.9 International Calls 3.5.10 Conference Call 3.5.11 Collect Call Service 3.5.12 Call Block Service 3.6 3.7 Favorite Cellular Operator 2009 Best Brand Award in Telecom in 2009 for Ufone

23 23 24 24 26 27 28 29 29 29 30 31 32 32 33 33 34 35

Chapter 4
4.1 4.2 4.3

Performed Activities as an Intern

36
36 37 38

Visit of Different Offices Visit of Mobile Shops Dealing with Customers in Franchise

Chapter 5
5.1

Critical Analysis

39
39 39 40 41 42 43 43 43 IV

Ufone SWOT Analysis 5.1.1 Strengths 5.1.2 Weaknesses 5.1.3 Opportunities 5.1.4 Threats

5.2 5.3 5.4

Competitive Advantages Challenges Plans for Future

Chapter 6
6.1 6.2

Recommendations & Conclusion

45
45 47

Recommendations Conclusion

Bibliography

48

EXECUTIVE SUMMARY

The development of skills to perform well in professional life has become a dire need of every Business Graduate. The very purpose, an internship is to acquaint the business graduate with experiential business practices.

As a compulsory requirement of Professional Degree in Business Administration, I selected PTML Ufone for my internship, to fulfill my degree requirement.

Tele communication industry is playing a fundamental role in the success of our economy. Pakistan Telecommunication Company Limited (PTCL) is the largest telecommunication company in Pakistan. This company provides telephony services to the nation and still holds the status of backbone for country's telecommunication. Despite the arrival of a dozen other telecoms including telecom giants like Telenor, Mobilink, Warid, Zong etc Ufone is one of the leading company in the market having best services. Being a marketing student mostly I will focus on the marketing strategies of Ufone.

VI

Chapter 1

INTRODUCTION OF STUDY

1.1

Background of the Study

It is a common practice at universities during the achievement of the masters and bachelors program to achieve practical practice in different fields. Hazara University Mansehra requires students to experience an eight weeks internship program. The firm selection is based on student choice. The university requires an internship report based on the theoretical and practical learning of the student. The concern of this report is to study and analyze the performance of Ufone overall & specifically Mingora.

There are many multinational telecommunication companies that are operating in Pakistan & they are considered to be more competent and productive as they mobilize foreign investment and provide better services. Ufone company is considered one of the most famous and outstanding telecommunication Company as far its reputation and progress is been concerned. Ufone was recognized to work cellular telephony. The Ufone Company starts its process from Islamabad under the brand name Ufone on January 292001. Since Etisalat took over PTCL in 2006, during the year as a consequence of PTCLs privatization, 26% of its shares were acquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been handed over to Etisalat.

1.2

Purpose of Study

The purpose of the report has been to review and analyze the functions performed by Ufone. The report also explores the strengths and weaknesses of the Ufone and also gives recommendation where any improvement can be possible.

1.3

Scope of Work

This report is anxious with the performance of the Ufone. It enlightens the Marketing functions of Ufone.

1.4 Methodology of the Report

The methodology for the collection of information and data was based on the two primary modes of data. Sources of Primary data: Personal Observation. Interviews of Personnel. Sources of Secondary data: Previous internship Reports. Brochures. Books. Web sites.

1.5

Scheme of the Report

The report is arranged in the following sequence. 2

Section-I
This section has one chapter.

Chapter 1 This is a preliminary chapter which describes the background, purpose, scope, methodology and method of the report.

Section-II
This section is comprised of four chapters.

Chapter 2: This is the brief history of telecommunication industry in Pakistan. It also tells about the history of Ufone, its mission statement and role in Pakistan. This chapter goes in detail study about the Overview of Ufone and Management Profile of Ufone.

Chapter 3: This chapter is the lengthiest chapter of the report. It precisely tells about the several departments working at Ufone and their functions. The departments are Human Resource Department, Technology Department, Audit Department, Finance Department and Marketing Department.

Chapter 4: This chapter is about the activities those which I perform darning my internship in Ufone franchise. 3

Section-III
This section also has one chapter and it is about the analysis of Ufone.

Chapter 5: This chapter makes the critical analysis of Ufone. The market analysis of Ufone is based on national performance of Ufone, followed by a SWOT analysis of the Ufone.

Section-IV
This section contains one chapter. Chapter 6: This is the recommendations and conclusion based on critical analysis of the organization. And this chapter is about the implementation plan that has been devised for Ufone on the basis of the room of improvements.

Chapter 2

OVERVIEW OF UFONE

2.1

History of Pakistan Telecommunication Authority

The Pakistan Telecommunication Ordinance 1994 recognized the primary regulatory structure for the telecommunication industry including the establishment of an authority.

Thereafter, Telecommunication (Re-Organization) Act no XVII was promulgated in 1996 that aimed to reorganize the telecom sector of Pakistan. Under Telecom Reorganization Act 1996, Pakistan Telecommunication Authority (PTA) was established to regulate the establishment, operation and maintenance of

telecommunication systems, and the provision of telecom services. The PTA has its headquarters at Islamabad and zonal offices located at Karachi, Lahore, Peshawar, Quetta, Rawalpindi and Muzaffarabad.

2.2

Pakistan Telecommunication Company Ltd

From the beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, PTCL has been a major player in telecommunication in Pakistan. Despite having established a network of enormous size, PTCL workings and policies have attracted regular criticism from other smaller operators and the civil society of Pakistan. Pakistan Telecommunication Corporation (PTC) took over operations and functions from Pakistan Telephone & Telegraph Department under Pakistan Telecommunication Corporation Act 1991.

This coincide with the Government's competitive competitive policy, encourage private sector participation and resulting in award of licenses for cellular, cardoperated pay-phones, paging and, lately, data communication service. Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTC, and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be PTCL in two separate placements. The shares value of each share was Rs 10 per share. And in mid 1996 these vouchers were converted into PTCL shares.

In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over basic telephony in the country. It also paved the way for the establishment of an independent regulatory regime. The provisions of the Ordinance were lent permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act. The same year, Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of Pakistan. PTCL started its mobile and data service in 2001 by the name of Paknet & Ufone respectively but none of them bring it to the top list in market competition. But lately the Ufone increase the market share in cellular sector. The Paknet brand effectively dissolved over the period of time. Recent DSL service started by PTCL reflects this by the introduction of new brand name and operation of the service being directly supervised by PTCL instead of Paknet.

As the monopolies of telecommunication in market comes to end very soon , services and infrastructure providers are set to face even bigger challenges. The postmonopoly era came with Pakistans Liberalization in Telecommunication in January 2003. On the Government level, a comprehensive liberalization policy for telecom

sector is in the offing. Pakistan Telecommunication Company Limited (PTCL) is the largest telecommunication company of Pakistan. PTCL provide telephone service to whole nation and working as a backbone in telecommunication infrastructure despite arrival of a dozen other telcos including telecom giants like Telenor and China Mobile. The PTCL has round about 2000 telephone exchanges which provide a large fixed line network across the country. PTCL also provide GSM, CDMA & internet which make it a gigantic organization. The 26% of PTCL shares were sold by the Government of Pakistan to Etisalat in 2006.

2.3

History of PTML Ufone

PTML of PTCL (Pakistan Telecom Company Limited), the largest operator in Pakistan. PTML was establishing to operate cellular telephony. The company starts working in January 29 2001.Since Etisalat took over PTCL in 2006, during the year as a consequence of PTCLs privatization, 26% of its shares were acquired by Emirates Telecommunication Corporation (Etisalat). As Ufone is a part of PTCL therefore the management of Ufone was also handed over to Etisalat.

Since its inception, The focus of Ufone is the people of Pakistan , empowering them with the most relevant communication modes and services that allow them to do a lot more than just talk, at a price that suits them the most. Along with the claim of lowest call rates, clear sound and best network, Ufone offers its customers simplified tariffs with no hidden charges. With a strong and exclusively amusing communication direction that has now become Ufones signature across all advertising media, Ufone gives its customers many reasons to smile.

This customer focus and best offering has allowed Ufone to build a subscriber base of over 20 million in less than a decade. Ufone has network coverage in 10,000 locations and across all major highways of Pakistan. Ufone currently caters for International Roaming to more than 260 live operators in more than 150 countries. Ufone also offers Pakistans 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.

As the world of telecommunications advances, Ufone promises its customers to stay ahead, developing and evolving, to go beyond their expectations, because at Ufone, its all about U. Ufone collected millions of smiles from all over Pakistan. This proves that Pakistan is smiling and will continue to smile, and this is our mission. Just as we have done in the past 9 years, we will continue to spread smiles among our customers and employees with our brilliant services, network, packages, offers and policies because today, tomorrow and forever, its all about U!

2.4

Mission Statement of Ufone

To be the best Cellular option for U

2.5

Overview of Ufone

Ufone one of the foremost telecommunication company in Pakistan. As mobile users in the country have reached over 28 million at very rapid pace, Ufone has maintain itself as the 2nd largest cellular operator in Pakistan with a subscriber base of around 6.5 million and market share of nearly 25%.Ufone has seen a subscriber growth rate of over 200% in the last year, and the start of 2005 Ufone added nearly 5 million subscriber onto its network .A remarkable achievement indeed, especially considering the fact those two new international players also entered to market in 2005.Subsequently the growth in subscriber based caused a healthy trend in revenue which have doubled.

Ufones operational performance has been very hopeful. Despite the stiff competition in Pakistan telecom market which has led to decrease of prices to bare minimum level, due to its violent policies and exercise strict control over expenses the company manage to improve its revenue and after-tax profit by 37% & 54% respectively, as compare to last year. After Mobilink, Ufone is the second cellular provider company that is based on GSM technology. Basically they are using GSM 900 technology with version 2001. Apart from this they are very strong in technological developments especially they have a well-establish research and development departments that is working on new technology. Likely they are the first company in Pakistan that is offering GPRS facility to their customers.

2.6

Management Profile of Ufone

In this part of the report I will talk about the flow of command that exists in Ufone. In Ufone the chain of command is very bend, in general the whole setup is centralized, all the matters are to be reported to the main company and all the policies and targets are accepted at the higher level. But at the department level the arrangement is decentralized.

President and CEO Mr. Abdul Aziz Mr. Abdul Aziz has rejoined Ufone as President and CEO in December 2007. A fellow Chartered Accountant, he has over fourteen years of experience in the Telecom Industry both local and International including Europe, Asia and Africa. During his job he has held a variety of higher-ranking level positions with companies including Warid Telecom, Millicom International, S.A., Ufone GSM and Celtel International. Mr. Aziz, being first CFO/Cosec was a key member of the Core Team which launched Ufone in 2001.

Chief Financial Officer

Mr. Mohammad Nadeem Khan

A Fellow Chartered Accountant Mr. Nadeem Khan has approximately 12 years skill in the telecommunication industry both locally and internationally. He holds a 10

diversified selection as international auditor at MIC, Luxemburg and served in the ability of Financial Controller in Millicom Cambodia before joining Ufone as Chief Financial officer (CFO) in 2003.

Chief Officer Government & Regulatory Affairs

Mr. Naveed Khalid Butt

With over 15 years of commercial & technical practice in the telecommunication industry, Naveed Butt has worked on senior management positions with a variety of cellular operators in Pakistan. A wangle by profession, Naveed has done his B.E. in Electronics from U.E.T, Lahore. Presently he is heading the Customer Operations and Regulatory Affairs departments at Ufone since June 2004.

Chief Officer Customer Services Operations

Mr. Ahmad Kamal

Ahmad Kamal has rejoined Ufone as the Chief Officer Customer Services Operations. He has broad Customer Services knowledge of 17 years working with leading Telecom Companies of the country. Previous to this role, Ahmad Kamal was General Manager Customer Services at Warid Telecom. He was title the Customer Operations at Ufone during the open phase. He has also served with Dvcom Ltd where he was responsible for Customer Operations & Human Resources. He has also served at a variety of positions of growing responsibility with Mobilink, where his last task was

11

looking after customer services at the national level. Ahmed Kamal has a Masters degree in Business Administration.

Chief Technical Officer Mr. Jafar Khalid Mr. Jafar Khalid is title the Technical Department. He has over 12 years of diversified skill in the telecom sector. He has a proven background in organization large-scale cellular projects, leading network planning, operations and execution initiatives, establishing and improving organizational processes, and aligning technical activities with business strategies. Before his scheduled time as CTO, he served as the Project Director & GM Network Planning in Ufone, and has held various senior technical management positions with his last employer Mobilink.

Chief Information Officer

Mr. Faisal Khaliq

Mr. Faisal Khaliq is the Chief Information Officer of Ufone since June 2008. Faisal has a Masters Degree in Computer Sciences from the University of Texas at Austin. He is also a Project Management Professional (PMP) with 12 years of practice in the IT industry. Prior to joining Ufone, Faisal was the Managing Director for Teradatas Global Consulting Center in Pakistan which is one of the largest offshore operations its kind for a multinational in Pakistan.

12

Chief Officer (Sales & Distribution)

Mr.Younas Iqbal Sheikh

Mr.Younas Iqbal Sheikh heads Sales & Distribution at Ufone (PTML) and has a rich working skill of 20 years most of which is in Telecom Sector helping companies like Siemens, Insta Phone, World call, Mobilink , Wi-tribe (Qtel) & Ufone (PTML). In his career he has played a key role in the areas of Sales & Distribution, Customer Services, and Operations and marketing, during his profession he was given difficult responsibilities, for instance heading 2 countries with a team of thousands and portfolio of Billions. He performed major successful overhauling with self-initiatives for Process-Re-engineering in the areas of; Sales, Channel Development, Customer Services, Business Operations and was a key contributor in rising complete business begin plan for Wi-Max services business in Pakistan for Wi-tribe Pakistan (Qtel).

General Manager Marketing

Mr. Akbar Khan

Akbar Khan heads the Marketing Division at Ufone. He has been part of the Pakistan telecom industry in key roles since 1998. Before joining Ufone last year, Akbar was Head of Brands at Mobilink and before that he was Head of Marketing at Paktel Limited. Akbar has done his MBA degree from IBA Karachi.

13

General Manager Corporate Strategic Planning & PMO Haque

Mr. Moqeem ul

Moqeem ul Haque is associate member of the Institute of Chartered accountants of Pakistan. He brings in thirteen years of extensive skill of working in the cellular industry. He was among one of the pioneers in Warid telecom. Moqeem has also served in Mobilink. Mr. Moqeem heads the business strategic planning job as well as supervises the special projects of the organization.

General Manager Administration

Mr. Mohammad Zahid Qureshi

Mr. Mohammad Zahid Qureshi has more than 12 year practice in telecom industry. Mr. Qureshi has been connected with Paktel and later Ufone for fairly sometimes. He participated aggressively in successful start of Ufone services in Lahore & Faisalabad. His center competencies and the areas he holds know-how in include Sales, Services and Administration. He has played an active role in starting of product and system development for Ufone. Mr. Qureshi has done MBA from Punjab University, Lahore.

14

Chapter 3 PROFILES OF DIFFERENT DEPARTMENTS

Every organization can be divided into certain departments and every departments acts various types of jobs and required specialization skill to perform the important job. It boost the power of workers and make job easier departmentalization in an organization could be judged through various aspects. Ufone is comprised of several departments. The division is made on the based of functions and job they perform. Hence it can be conclude that Ufone has adapted to the policy of practical departmentalization.

In this chapter I will discuss the different departments and their functions how ever my main focus will be on the marketing department because my specialization is in marketing.

Human Resource Department Technology Department Finance Department Audit Department Marketing Department

3.1

Human Resource Management

Human Resource Management has always been the key factor in an organizations achievements. The employees of an organization forever decide the way of success for the business. The primary anxiety of HRM has been on the subject to mould the 15

personality of employees in a method which formulates the individual goal of the staff into the organizational objective.

Human Resource Department at Ufone

HR Department

Training & Development

HR Operations

Outsource Operation

The Ufone have the following three sub units of HR Department: Training and Development HR Operations Outsource Operations

3.2

Technology Department

After Mobilink Ufone place the second leading service company based on modern technology Ufone is very strong on technology it is the first company of Pakistan which is offering GPRS facility to its customers. The option of modern technology is important in this industry because it can provide the operators with product differentiation in a crowded market.

16

For any operator, in selecting GSM technology, there are two routes to follow. Either start as a technology leader with large investments in GSM / GPRS / EDGE technology or start a phased roll out and adopt a build as they come approach, using infrastructure sharing and roaming arrangements to provide coverage to its users. The first approach allows the operator to charge a price premium and rollout services on top of its higher speed network. The second approach is accompanied with a price discount strategy capturing the low-end market segment in the initial phase and moving on later to the higher border customer.

3.3

Finance Department

The cellular phone sector that it has witnessed tremendously harsh competition among its market players particularly in the race of subscribers addition, calls and SMS tariffs and value added services for last two years. Besides competition, global credit chomp, reduction of rupee against dollar, countrys economic slow down and high taxation on telephony services have altogether shrunk revenues and dragged down almost all cellular phone in couple of years.

However, Ufone has shown positive growth in this period with the support of its parents company. Telecom analysts provided reasons behind Ufones steadiness in hostility the terrible situations, saying that Ufones packages that include PTCL landline and wireless calling services coupled with the high traffic of daily SMS bundles have increased its income through its customers. Free minute offers and introduction of Ramadan packages jacked up the revenues of the company in Jul-Sep 2009. Ufone continued high earning growth in 2010-11 with net profit of Rs 506 million. 17

Ufone, the wholly owned subsidiary of PTCL, has witnessed an overall revenue increase to 9.214 billion in the closing quarter of 2010-11 as compared to Rs 8.708 billion revenue earned in the same period of the last year. Despite the powerful competition among the cellular phone operators of the country, the PTCL subsidiary has continued to earn profit as against other foreign cellular phone companies facing harsh financial constraints in the last couple of years.

3.4

Audit Department

In business auditor is essential tool especially when reporting financial report. In Ufone the audit is carried out for different departments separately, in the marketing department the audit team of Ufone identify the market gap and the reported deficiencies are regularly sent on daily basis to the head office. The audit team investigates the franchises activities. The following activities are monitored by the audit team, market availability of Scratch Cards, u load, Sims.

Merchandising of Ufone e.g. Poster, Banners etc. It also includes booth activity at different market places for the customer consciousness. And also check the universal data for the purpose of getting the true and correct in formation of retailers. Surprise visit of market check the inventory of Retailers. We establish strong relationship with the dealers and Retailers. Managing the sales team and motivating them and hire them know direct Marketing and sales. Meeting with the Ufone franchises for setting of targets for PPC and U Load sale for Business development; Capturing Market share by tale marketing team.

18

3.5

Marketing Department

The main concept of marketing is to identify the need of market in the desire line of business and according to the need identified in the market satisfying it in the best possible manner. The major activities that are carried out in marketing are generally known as the 4Ps of marketing that are planning of Product according to the market need, planning of Price so that the company should meet its costs & survive itself in the market, Place i.e. identifying appropriate market place for the sales of the product offered, Promotion giving awareness to the market about the product offered by the company. There are four marketing departments of Ufone they are: Brand Marketing Value Added Service(VAS) International Roaming Marketing Operations

3.5.1 Marketing Department

Marketing

Brand Marketing

VAS

International Roaming

Marketing Operations

The marketing department of Ufone controls all activities which related to Ufone new packages. Ufone increase its brand visibility and image through its vibrant marketing strategies. 19

The different marketing strategies that are followed by Ufone are presented in this section, in this section I will also discuss the market position that Ufone in the current market.

3.5.2 Marketing Strategies

The foremost job of the marketing department is to bring new customers to the organization. The marketing strategies devised by Ufone are discussed below.

3.5.2.1 Market Segmentation Market segmentation is a process through which the market is divided into several different segments to be arranged. The cellular market is a very dynamic market and according to the dissimilarity marketing strategies are devised from time to time. Ufone and other cellular network divide the market in four portions; Age, Gender, Occupation, and Economy.

Economy Class

Upper Class, Middle Class, Socio Economic Class, Lower

For these different segments Ufone has interesting strategies & compare to other cellular companies are the best one. For economy class Ufone offer post paid packages which are for the business and corporate class customers. The customers of this segment are very busy people and do not find enough time to recharge their mobile from time to time therefore they are owed after each month. In this product Ufone offer very low rates because the usage of this class is very high. For the middle class Ufone has Uwon package, public demand, tension free etc these entire packages are prepaid and economical for this class to afford. For the lower class Ufone has the 20

facility of Uload which are available in each and every corner of the country. In this facility the customers can recharge from Rs 10 to max limit.

Age Teenagers, Youngsters, Middle Age, Aged People In this segment, for teenagers and youngsters there are bundle of low rate sms packages because they mostly communicate through sms. Customers of this segment favor Ufone because other networks sms rates are very high.

Gender

Male & Female

For this segment Ufone has Pre Pay Life, Ganta, and Super Ganta package. The features of this package are that customer can enjoy at lowest rate to Ufone, PTCL and VPTCL at low per hour rate. This package is designed for friends, couples, relatives who talk for a long period on regular basis.

Occupation Corporate Class, Business Class, Working Class For the business class customers Ufone offer Blackberry which has internet facility in the mobile phone. For the corporate class the rate decreases depending on the increase of usage rate. In this segment Ufone offer extra free minutes to Ufone for those customers who use Ufone most regularly.

3.5.2.2 Target Markets The main focal point of all mobile phones companies are the young people. And therefore the main focus of Ufone is the young generation. The Ufone targets the youth of Pakistan.

21

 Target Marketing Strategy The target market of Ufone is always the youngsters. Ufone phone always bring such kind of packages that meet the needs of the youngsters. There is no doubt that Ufone also launched packages for working people, Ladies, Aged once and Business class.

3.5.2.3 Positioning The companies create image in consumers mind. They create image in consumers mind sensitively, functionally or on the basis of product quality or through brand quality. Ufones previous Positioning Statement: Everybody Loves to Ufone Prepay

Ufones new Positioning Statement: Ufone tum hi toh ho! Or Its All about U

Ufone Positioning Strategy Since from the beginning, Ufone has position its brand on the basis of providing the lowest call rats. It makes belief them that Ufone can satisfied their needs. The brand name of Ufone is itself a positioning statement.

35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

Top Reason for Customer to Remain31.07% Ufone with

27.60% 14.83% 12.62% 3.47% 6.15% 2.37% 1.10% 0.79%

Low O et C n-N all R ates Low O et C f-N all R ates H ourly P ackages (N ight) H ourly P ackages (D ay) SM P S ackages GR D E P S,E G R ates GR D E P S,E G Speed C overage & N etwork Q uality Best C ustom er Support

3.5.2.4 Differentiation

et C a O ll fR H N a o et te ur C s ly al P lR ac at H ka o es g ur es ly (N P ac ig ht ka ) g es S (D M ay S G ) P P ac R ka S ,E ge D s G G P C E R o R S ve a ,E ra te D ge s G E & S N pe B et es ed w or t C k us Q ua to m lit er y S u pp or t w

w Lo

Lo

O nN

22

In these days of enormous competition the marketers distinguish their service from other companies the customers are now only care about the price. And when they are not satisfied they change the brand. Thus leaving a customer displeased and not meeting there demand is out of question fore the marketers.

Differentiation Strategy Ufone always stress on customers pleasure therefore Ufone fruitfully distinguish itself in term of technology, service, quality and price.

3.5.2.5 Customer Relationship In Pakistan 28 million people use mobile phone and the customers of Ufone are 7 million. The Ufone maintaining good relation with there customers through Call Center and customer service center. For customer relationship they have special customer operation departments.

Customer Relationship Strategy The Ufone create strong connection with there customers to increase there loyalty and life time values. Therefore Ufone trains its permanent employees and internees that how to deal with their customers. The Ufone also give reward to their long-term postpaid customers. 23

3.5.2.6 Total Market Orientation The total market direction is about to sympathetic and meeting customers expressed and dormant needs.

Strategy Ufone is always considered as a low call rates and quality service. It also provides new packages and set up new brand to meet customers needs. For example for the women of our society its packages is 5 ka 15. They plane for short calls and chats.

3.5.2.7 Competitors This is hard core competition in Pakistan among cellular companies. Mobilink is market leader and Ufone is market challenger in the market. Newly introduce ZONGE, Telenor, and Warid are also considered as strong competitors. The following are Ufone direct competitors:-

Mobilink The Mobilink Pakistan cellular company has 10 million subscribers. The Mobilink Company is the largest cellular company of Pakistan.

Telenor One of the stronger competitors of Ufone after Mobilink is Telenor. The sound quality of Telenor is outstanding and also the GPRS of Telenor is faster than Ufone.

Warid 24

Warid start working in Pakistan in 2005. The Warid Company is operated by Abu Dhabi group by Sheik Nahayan Mubarak Al Nahayan. It is also contestant of Ufone.

Zong ZONG is the first International brand of China Mobile being launched in Pakistan. It is meant to authorize and release the people of Pakistan in every corner and nook of the country. It will become a part of their hearts, their minds and bring about a change in their lives that every one desired but few thought would be possible.

Ufone also considers the following as its competitors: PTCL WIRELESS Wateen Telecom World Call

Competitive Strategy

25

The competitive strategies of Ufone are customer differentiation and intimacy. Ufone aims are passing Mobilink in its competitive race.

Comparision of Telecom Companies using BCG Matrix Approach:

Star

Question Mark

?
High Cash Cows Low Dogs

G r o w t h
High Relative Market Share Low 3.5.3 Market Share
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In this highly competitive market the market share of a company is considered as a strong parameter. Mobilink was the market leader for a long time both in term of revenue and subscriber for first time. But when new competitors come to market like Zong start work in the market it change the market structure but still Mobilink holds maximum shares in market. Now customers have enhanced and more choice to select

R a t e

a brand. The following figure shows the companies share in market in term of subscribers during 2008-009 & 2009-010. Mobilink lost its 15% shares during this year. While others companies show that they increase their shares. Telenor is the second highest share holder in market with 22.2% shares. Ufone has 21% & Warid 19% shares. Others companies except Zong & Ufone lose their shares and these two increases there shares from 1% to 4% and 15% to 19% respectively.

2008_2009
Warid 17.6 %

2009_2010

Insta phone0.36% Zong 4.49%

Mobilin k 36.39%

Warid 18.96% Insta phone, 0.04% Zong, 6.77% Mobilink, 30.88%

Ufone 20.56%

Telenor 20.59%

Ufone 21.20%
Zong Insta phone Warid

Teleno r, 22.15%

Mobilink

Telenor

Ufone

3.5.4 Advertising Objectives

The advertising objectives of Ufone are to inform Customers about Ufone new and avail services induce people about their services.

Advertising Budget

The advertising budget of Ufone is higher in electronic media and other media but these expenditures are considered as investment. These are full of risk also a single

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advertisement of Ufone on TV channels played about 15-20 times every day. On advertisements and sales promotion Ufone spend 20% of its total profit. Strategies: Ufone adopt various types of strategies for publicity massage as well as advertising media. These strategies are :-

Advertising Message:

Message Content: The first and initial step for advertising a message is the message humor and after this it is steadily shifted to the customers in order to win the heart of the customers.

Message Format: The methodology of message formatting is very good-looking and colorful. The Ufone use Orange & Green colors which are very beautiful and gorgeous.

Message Source: The main sources Ufone use in their advertisement is celebrities. Ufone advertise their through famous celebrities like Faisal Qureshi, Meera, Jia Ali, Vena Malik etc and other young models. These advertisements have also sexually track the people due to these models. The Ufone also hire comedian stars for there advertisement. Hiring these people is economical and the people like these stars. Endorsers in group are also hired bye Ufone.

3.5.5 Ufone Brand

In order to develop gradually Ufone customers they improve and make livelier. The image of Ufone is due to changing in their visual uniqueness. The value of Ufone is to connect and provide service to the people of all ages. It does not matter for Ufone that 28

who are you, where you are, what you want and say, how you feel because Ufone is all about you and you are the main focus of Ufone.

3.5.5.1 Prepaid Ufone welcome you in Ufone prepaid community because with Ufone you can call and send SMS with low rates. The Ufone know that people want to touch with their friends and family that is why Ufone provide low call rates. The Ufone provide scratch cards for prepaid customers which ensemble to their budget and can recharge easily. Prepaid IR

The world most reasonably priced and economical tariff offering now in various important destinations.

3.5.5.2 Post Pay Ufone welcome you in endless possibilities post pay connection which connects you to attain the unexpected. Ufone post pay connection is for those people who want and expect more from life. The aim of Ufone is to provide most superior mobile phone service, quality network, and best customer service for their customers. One can enjoy special discounts, GPRS, Umail and internet roaming from Ufone.

3.5.6 BlackBerry
BlackBerry is solution for connecting mobile professional to customers with colleges while they are on move. The BlackBerry can be coordinated with ones laptop, office computer and can also be linked with web mailbox. Blackberry is advance technology device which is simple and easy to use like: 29

You can make and receive calls with BlackBerry and you can also send mail or text messages from BlackBerry.

3.5.7 Recharge Option

You can easily recharge your prepaid easily. You can recharge your prepaid with scratch cards, U Top up, MTM or SMS and electronic vouchers.

U Load

Through U load you can easily recharge prepaid. U load is alternative for those customers where scratch cards are not available.

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Scratch Card

Through scratch cards you can also recharge youre prepaid easily. It is the easier and simply way to recharge. The denominations of scratch cards are;

Rs.100

6 months

Rs.250

6 months

Rs.500

1 year

Rs.1000

1 year

3.5.8 Detail of Prepaid Calls

For the first time Ufone initiate print option of prepaid call details. The detail of prepaid calls creates customer trust on Ufone. In calls detail you can ensure your outgoing calls. For availing this service Rs.50 is charged from balance. You can receive detail of calls from service center or to contact with call center of Ufone.

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3.5.9 International Calls

Ufone offer more eagerly payable rates of international calls as compared to local calls. Ufone brings the most willing payable call rates now call to your friends in UK, USA and Canada from 12am to 8pm at lowest call rates i-e 45 paisas per 30 second.

Prepaid Roaming

Ufone Prepaid offers international roaming at very low price in market as compare to others. International roaming not lavishness for prepaid and there is no need to deposit security for international roaming. Ufone now offer it on very low cost. You can get this service by calling Ufone call center. Ufone also offer for international MMS. Now both prepaid and postpaid customers can send international MMS.

3.5.10Conference Call
Now with Ufone conference call you can talk with up to six different peoples at a time. To activate this service simply send sms to SUB to6789. Conference call is used to discus business issues.

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Pricing

The activation charges of this service for one time are Rs.300. Both postpaid and prepaid can use this service.

3.5.11 Collect Call Service

In Pakistan Ufone for the first time initiate collect call service. You can remain connected even if have no balance. Collect call provide you expediency calling if your balance does not allow you to call. You can make a collect call by dialing 11 before Ufone number.

3.5.12Call Block Service

Now you can block all unwanted calls with Ufone call block service. Ufone was the first in Pakistan which introduce call block service.

Call Block Service for Post pay:

For first time in Pakistan the post pay users can also use the call block service. The post pay users can also block unwanted SMS. You can activate this service by sending SMS SUB to 420 once you save the sitting of this service on your mobile

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then you can block SMS & unwanted calls. You can deactivate this service by sending SMS UNSUB.

3.6

Favorite Cellular Operator 2009

In Pakistan 2009 was very competitive for cellular companies. New products, ads, packages, offers, social media etc were use in competition by the companies. But among them Ufone was the preferred cellular company.

Favorite Cellular Operator 2009

30% 25% 20% 15% 10% 5% 0% Warid Telenor Ufone Mobilink Zong Warid Telenor Ufone Mobilink Zong

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3.7

Best Brand Award in Telecom in 2009 for Ufone

Ufone is strongly focusing on services of high qualities, and this is the Ufone standard. Ufone is considering one of the best network in Pakistan, as compare to other network its pricing strategies are such which are affordable for any class of users. Recently Ufone lunch Tension Free Package. In this package Ufone offer Rs 1.2 per mint Ufone to Ufone and Ufone to other network. From time to time new strategies are revised keeping in view the market conditions.

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Chapter 4

PERFORMED ACTIVITIES AS AN INTERN

During my internship in Ufone Franchise Mingora Swat I perform different types of activities. While performing my internship in Ufone franchise I worked inside the Ufone franchise and also visit many different places with my senior colleges. We visit different private and government offices and there we introduce and market our products.

I also work inside the franchise and there our work was to guide the customers and tell them about our products and new packages. The main duties which I performed darning my internship in Ufone franchise are discus below in detail. 1 2 3 Visit of different offices Visit of Mobile shops Dealing in franchise with customers

4.1

Visit of Different Offices

During visit of these different Government and private offices we meet the people and tell them about Ufone different packages and convince them to use Ufone. And we claim that the aim of Ufone is to provide most superior mobile phone service quality. The main purpose of targeting professionals is to market Ufone Post pay. Because Ufone post pay is very convenient for such kind of people. Through Ufone the businessmen can also use collect call service by which they can

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easily discuss business matters with many people at a time. They can also recharge it very easily by scratch cards and also through ATM. The main points of Ufone Post pay that we tell to the customers or businessmen and convince them to buy Ufone are the following. Special discounts: on a range of talk plans you can choose from:

Virtual Private Network (VPN): Your own private network within the

Ufone network. GPRS: Internet Access on your GPRS enabled phone & mobile office so

you can be in touch with business while you are out and about. Umail: To enjoy wireless email products. International Roaming: in countless destinations, keeping you connected

worldwide. Exclusive Customer Care: with personal service to help set up your phone

to suit your needs. Ufone Post pay with its technological edge, great value for money and

unmatched quality is your perfect companion on the road to success.

4.2

Visit of Mobile Shops

Darning the mobile shops visit we visit different shops in the market. There we introduce our products i-e Ufone post paid pre paid and others packages which Ufone provide to their customers. We give full detail of Ufone package that it offer to Ufone user like Ufone prepaid offer the following packages to pre paid user Ufone welcome you in Ufone prepaid community because with Ufone you can call

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and send SMS with low rates. The Ufone know that people want to touch with their friends and family that is why Ufone provide low call rates. The Ufone provide scratch cards for prepaid customers which ensemble to their budget and can recharge easily. And Ufone post paid offer these packages to their users Ufone welcome you in endless possibilities post pay connection which connects you to attain the unexpected. Ufone post pay connection is for those people who want and expect more from life. The aim of Ufone is to provide most superior mobile phone service, quality network, and best customer service for their customers. One can enjoy special discounts, GPRS, Umail and internet roaming from Ufone.

4.3

Dealing with Customers in Franchise

I also deal with customers in franchise and guide them and also tell them about different packages of Ufone. And give them the reasons that why one must switch to Ufone. We tell them that Ufone provide vide range network give you clear sound during call and also provide you quick connection while you are calling.

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Chapter 5

CRITICAL ANALYSIS

5.1 Ufone SWOT Analysis

The SWOT analysis is the company overall evaluation a companys strengths, weaknesses, opportunities, and threats.

5.1.1 Strengths
Strengths are the internal resources, capability, and positive factors which is necessary for company to achieve its goals. The following are the strengths of Ufone:

The biggest strengths of Ufone is its separation from others

companies. The things that separate Ufone from others companies and competitors is it low calls rates.

The value added services that is offered by Ufone is better than

others companies i-e Smart code, Call Block Service, Collect call etc.

The ATL (Above the Line) activities of Ufone are more good-

looking and promising. The internal and external management of Ufone is great.

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The Biggest strength of Ufone is its status through out the country,

the people of Pakistan believe Ufone as it national company & mostly people wish to use Ufone.

Ufone is measured to be the second largest telecom co in Pakistan

therefore it is enjoying economy of scale.

Ufone is a government company and therefore it enjoys a lot of

concessions, which the private cellular companies cannot enjoy.

GSM technology: It has well-built brand exceptionality. It has

successfully projected itself as a company meant to serve up its people.

strategy.

Ufone has Wide network. Ufone has a wide-ranging promotional

Ufone has a joined network of franchises.

The grate substitute for prepaid customers is Electronic Voucher

Distribution.

This service is great because it make sure that the credit want for

Ufone connection will always be easily reached on-demand.

5.1.2 Weaknesses
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Weaknesses contain internal limitations and negative situational factors that may obstruct with the companys performance. Ufone has the following weakness:

Ufone has less professionalism within the managerial members.

Ufone still has chance for the betterment of its network exposure in assessment to The Market Giant MOBILINK.

The billing system of Ufone for prepaid customers is not good which generate negative image in customers mind.

Ufone being a government organization has comparatively less human and monetary capital accessible as compared to its leading competitors that are subsidiaries of large multinationals such as Mobilink and Telenor.

Customer services provided by Ufone are not according to the necessities of their customers.

5.1.3 Opportunities
Opportunities are positive factors or trends in the external environment that the company may be able to develop to its benefit. The followings are the opportunities for Ufone:

Ufones major opportunity two-faced in front near future is the phase of adaptation of their GSM technology & 3G (satellite based) technology. 41

 Ufone has the opportunity of raising its customer hold up due to growing propensity of using mobile phones.

By improving their network Ufone can augment its customers. The Ufone has also the opportunity that it is lead the way in southern Punjab where it can encourage itself and become market leader on the basis of this very information.

The Ufone can also improve its network encourage in order to make additional trustworthy customers.

They should give jobs to students by calling different universities and other organizations. They can position their job advertisements on university bulletin boards and also ask the fresh graduates for walk in interviews.

5.1.4 Threats
Threats are critical external factors or trends that may present challenges to performance. Ufone is parallel/about to face the following intimidation:

Ufones biggest opportunity is its biggest danger as well. The phase of its adaptation of GSM technology to 3G technology can be a risk for it if not accepted correctly.

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 The boosting customer base of Warid and Zong is also a big warning for Ufone.

The declining market rate and unpredictability of Pakistan is a big danger for all businesses in Pakistan as well as Ufone.

5.2

Competitive Advantages

Its a benefit over competitors gained by present consumers superior value than competitors offer. Ufone strategizes to expand more and more competitive advantages. It also uses this competitive compensation well enough for its promotion. Presently Ufone is enjoying the following competitive advantages: Lowest call rates Value added Services (VAS) Call block service Corporate color

5.3

Challenges

The Ufone face many challenges with the ever rising needs of telecommunication. It has to stay profitable with the declining economical circumstances of Pakistan. Ufone face very muscular rivalry from its competitors. It must offer lowest rates with superior quality service. New features and services should be introduced to make its customers faithful, joyful and fulfilled.

5.4 Plans for Future

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Keeping in view the growth possible of the cellular industry there is no alternative but to be violent in order to remain a powerful force in the cellular business. In order to expand cellular network Ufone has finalize a massive network development agreement amounting to about US$ 550 million, which will improve the subscribers capability by 10 million. This is the major ever extension plan of Ufone. A muscular center will be on maintaining high excellence of service, which is always a standard of Ufone, growing tradition and exploring new income streams on value added services, market visibility through a variety of market initiatives to accomplish subscribers pleasure and insist and above all to increase the value of investment for the shareholders.

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Chapter 6 RECOMMEDATIONS & CONCLUSION

6.1

Recommendations

Recommendation is rarely welcome; and those who want it the most always like it the least. Recommendations put forward improvements in areas which have scope for polishing and development. Criticizing quite a lot of factors at Ufone does not mean that these aspects are everlasting flaws of the business. In its place, it is future that these mistakes be removed. For the elimination of these errors, sure recommendations are forwarded.

Network Coverage
As compare to other cellular companies and especially the market giant Mobilink the network coverage of Ufone is very low. If Ufone concentrate on the expansion of the network coverage the result will be increase of market share & sales. In the remote areas of Pakistan & especially in Malakand division there are such areas which have no network coverage. Still in these areas there is large capacity of market share waiting for Ufone to capture.

High Post Pay Tariff

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As compared to other networks Ufone post pay tariff is very high. Mostly in the post pay segment the cellular companies has the cream customers and most of the earnings come from this segment, therefore it is recommended for the decrease of the post pay tariff to increase the market share and sales.

High Rates Of GPRS & Mms Facility Mostly in the cellular market the customers switch to other networks which have low cost of GPRS & MMS, therefore it is recommended that Ufone should decrease their charges list in this category.

Franchise & Head office GAP Most of the times when the franchise lodge a solution for their customers problem the response is so much delayed from the head office that result in the frustration of the customers.

Low Pre Paid Cards Percentage

Compared to the other cellular companies the sales commission of the Ufone is not too much good for the whole sellers & retailers. The whole sellers & retailers spend a lot of money to purchase the inventory and mostly prefer the inventory which has high sales percentage.

Training Of The Sales Officers

The sales department is the most important department for the cellular companies. The sales channel of Ufone is too much unsatisfactory. The sales are made through

46

the franchises. The franchises appoint their own sales staff and salaries are settled from the franchise level. The sales staff does not enjoy any kind of benefits & training from the Ufone Company. Ufone needs improvement in this category & needs to train their franchisee sales officers.

Motivation
According to employees of Ufone there is no aspect present for employees inspiration but the management says that they inspire their employees.

Have A More Professional Attitude

The Ufone does not follow professional attitude a lot of business personal employees are assess on the bases of personal relations with upper management.

6.2

Conclusion

By intensely analyzing the Ufone marketing, I agree that Ufone is not a privileged actor in the marketplace. It is piercing its market by taking risks and forcefully promoting & advertising itself. It holds second major market share and is looking for to become the market leader at any rate possible. We came from side to side very option strategies and ad campaigns while working on this report. We believe that mobile services are the toughest market to come in and stay alive. And in this hard market Ufone isnt only existing but growing at an outstanding rate.

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Ufone is using humorous theme in its ads which has become its standard. People take delight in watching, discussing and following Ufone ads the most. And it is the biggest success of Ufone in current era.

We wish a very best of luck to Ufone. May it development in this field and accomplish its much loved goals. (AMEEN)

BIBLIOGRAPHY

Kotler, Philip. Marketing Management. The Millennium Edition. Prop of Northwestern University.

Tull, Donald S and Hawkins, Del I, Marketing Research Sixth Edition. Department of Marketing University of Oregon.

Iqbal, Fahad, Internship Report on PTML Ufone, University of Central Punjab.

Pakistan Telecommunication Authority, (2009).Annual Report of Mobile Cellular Services.

PTML Ufone, (2009) Brochures, Tariffs.

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