Pricing Strategies of Ufone With Telenor

Compare the pricing strategies of "Ufone" with "Telenor" in prepaid connection 1
FINAL PROJECT
ON
COMPARE THE PRICING STRATEGIES OF
"UFONE"
WITH
"TELENOR"
IN
PREPAID CONNECTIONS
A REPORT
SUBMITTED TO THE DEPARTMENT OF MANAGEMENT SCIENCES,
VIRTUAL UNIVERSITY OF PAKISTAN
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
THE DEGREE OF MASTERS IN BUSINESS ADMINISTRATION
Department of management sciences

Virtual university of Pakistan
Table of contects:
acknowledgement
Chapter 1: ……………………………………………………………
Introduction
1.1 Introduction……………………………………… 5
1.2 Background of project……………………………. 5
1.3 Companies introduction…………………………. 5
1.3.1 Ufone…………………….. 5
1.3.2 Telenor…………………… 6
1.4 List of compotators……………………………….. 6
1.5 Project objectives………………………………… 7
1.6 Signification of project…………………………… 7
Chapter 2: …………………………………………………………
Pricing strategies
2.1 Marketing mix…………………………………… 9
2.1.1 Product…………………… 9
2.1.2 Pricing…………………… 11
2.1.3 Promotion………………… 11
2.1.4 Placement………………… 12
2.2 Marketing segmentation…………………………… 13
2.3 Target market……………………………………… 13
2.4 Market domination………………………………….. 13
2.5 Market Differentiation………………………………. 13
2.6 Pricing objective of the company…………………… 13
2.7 Product mix pricing strategies……………………… 13
2.8 Price adjustment strategies…………………………. 14
2.9 Price changes……………………………………….. 14
2.10 Inflating price change……………………………….. 14
2.11 Competitor's reactions to price changes…………… 14
2.12 Company's responses to price changes……………… 14
Chapter 3: …………………………………………………………
Compotator analysis
3.1 Introduction of the compotator's firm………………. 15
3.2 Marketing mix……………………………………… 15
3.2.1 Product……………………… 15
3.2.2 Pricing…………………… 16
3.2.3 Promotion………………… 17
3.2.4 Placement………………… 18
3.3 Marketing segmentation…………………………… 18
3.4 Target market……………………………………… 18
3.5 Market domination………………………………….. 18

3.6 Market Differentiation………………………………. 18
3.7 Pricing objective of the company…………………… 19
3.8 Product mix pricing strategies……………………… 19
3.9 Price adjustment strategies…………………………. 19
3.10 Price changes……………………………………….. 20
3.11 Inflating price change……………………………….. 20
3.12 Competitor's reactions to price changes…………… 20
3.13 Company's responses to price changes……………… 20
Chapter 4: …………………………………………………………..
Methodology
4.1 Data collection sources……………………………… 22
4.2 Data collection tools………………………………… 22
4.3 Primary sources…………………………………….. 22
4.4 Secondary sources…………………………………… 22
4.5 Sample size…………………………………………. 22
4.6 Sampling technique…………………………………. 22
Chapter 5……………………………………………………
Data processing and analysis & interpretation
5.1 Data processing and analysis & interpretation…….. 23
5.2 Summary……………………………………………. 26
Chapter 6……………………………………………………
Conclusion, Recommendation and Limitation
6.1 Conclusion……………………………………………. 27
6.2 Recommendation……………………………………… 27
6.3 Limitation……………………………………………. 28
Acknowledgement
It is a very helpful project for the peoples who are in problem to find the cellular network
company having strong network as well as low price rate. The project is also belonging to the
marketing strategy. The important problem has also solved in the project that “How we can
aware the peoples about the cheaper as well as best company. It was very difficult for me to
make such project. So some special persons help me to solve the problem easily. First of all I am
very thankful for my parents which enable me to this stage that I am able to write such types of
project. Secondly I am great full for my teachers who help me about the title of the project and
about the format of the project. Then I am helpful for all of my friends which help me to typing
this.
Chapter no 1
1.1 Introduction:
In all over the world, cellular network companies sector is one of largest and
important sector. It is major driver of economics. It put a large change on the
economic. It is largely used to dealing in between the far living traders. It also used
to set the time of meeting between to shining personalities.
The cellular network companies has been registering high growth for the last
four or five years due to the country business.
The cellular network companies are proud of their usage by the users
positively for the sake of business.
This sector can not be ignored because it is not a great business but it is most
beneficial for us. Now a day we can talk our friend who is living in any country over
the world by using any network connection.
Their introduction is as under partially
1.2 Background Of Project:

The background of this project is to compare the Pricing Strategies of
“UFONE” With "TELENOR" In Prepaid Connections. I will find out the reasons and
factors that make them strengthen and strongest among peoples. For this we need to
very closely and detailed overview of the company. But there is not need to make a
large research about the telecom companies in Pakistan. Because only few year ago
telecom sector start its life and get great result.
Both the companies Ufone and Telenor is fulfilling perceive of the customer,
and the calling rates are much reliable. But in my research I will identify how much
strong these arguments? What the reason are behind to successful fulfill perceived
value of costumers, making the users more loyal, marketing success of the companies,
and the major aspects that are making the telecom company more attract full for the
costumers.
Telenor and Ufone fulfill the whole of the costumer’s need as they want in
every of aspects. Both of the companies are providing reliable and more luxurious
packages for all purposes. As voice over IP, web conferencing and online video
sessions are becoming popular these companies have bright future ahead.
1.3 Companies introduction:
1.3.1 Ufone:
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. Pakistan Telecommunication Corporation (PTC) took over
operations and functions from Pakistan Telephone and Telegraph Department under Pakistan
Telecommunication Corporation Act 1991. This coincided with the Government's competitive
policy, encouraging private sector participation and resulting in award of licenses for cellular,
card-operated pay-phones, paging and, lately, data communication services.
Pursuing a progressive policy, the Government in 1991, announced its plans to
privatize PTCL, and in 1994 issued six million vouchers exchangeable into 600 million shares of
the would-be PTCL in two separate placements. Each had a par value of Rs.10 per share. These
vouchers were converted into PTCL shares in mid-1996.
In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for
PTCL monopoly over basic telephony in the country. 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.
Pakistan Telecommunication Corporation Limited (PTCL) that started its operations
in January 2001 under the brand name ‘Ufone’. As a result of PTCL’s privatization, Ufone
became a part of the Emirates Telecommunication Corporation Group in 2006.
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
and constantly introducing innovative services, which have been the first of their kind in the
Pakistani cellular industry.
1.3.2 Telenor:
Telenor Pakistan launched its operations in March 2005 as the single largest direct
European investment in Pakistan, setting precedence for further foreign investments in the
telecom sector. The company has crossed many milestones and grown in a number of directions,
making Telenor Pakistan a leading telecom operator of the country.
The Company has fastest growing mobile network in the country, with coverage reaching
deep into many of the remotest areas of Pakistan. In the most difficult terrains of the country,
from the hilly northern areas to the sprawling deserts in the south, at times Telenor is only
operator connecting the previously unconnected.
Telenor keeping ahead by investing heavily in infrastructure expansion. With USD2
billion already invested, Telenor has extended agreements with companies vendors for network
expansion and services until 2009. The agreements, with a potential to result in USD750 million
worth of orders from Telenor Pakistan, are some of the biggest of their kind in the industry.
The company spread across Pakistan, creating 2,500 direct and 25,000-plus indirect
employment opportunities. Telenor has a network of 23 company-owned sales and service
centers, more than 200 franchisees and some 100,000 retail outlets.
1.4 List of Competitor:

Here is the list of competitors regarding Pakistani environment and my target cellular
network companies also apart of this competition so these competitors are listed below:
1. Telenor
2. Ufone
3. Jazz
4. Warid
5. Zong
These are the top listed companies those are the competitors of each others. Most top of
the list in competition among prepaid connection are “Telenor” and “Ufone”.
1.5 Project Objective:

 How both the companies maximize the profit by the balancing price of connections and the
calling rates
 How the companies can low their price through coupons, special offer and discounts rates of
connection and calling rates
 How the companies recover the cost of product by introducing a new package and new
product and how both the companies increase the pricing again when introduce a new
product.
 How the company create a price strategy to establish company’s leadership position in the
market.
 How both the companies set the prices to distinguish items in multiple product lines and how
pricing differences can also distinguish product form each other.
1.6 Significance of the project:

 According to assigned Project “compare the pricing strategies of Ufone and
Telenor with in prepaid connections” it will be most helpful for us how the
companies maintain the profit with the low price and also attracts the customers.
 Also signify that how company provide the best calling rates and have the best
pricing strategy compare to the other.
 This project makes us that which company have a good pricing strategy compare to
the other.
 Project also clarify that how the other stake holder (related persons like the
customer care centers and other like the easy load) who coordinate with the people
and also the attitude of these with the customer and the dealing and communication
language.
Chapter 2:
2.1 MARKETING MIX:

I have analyzed the marketing mix of the Ufone. Marketing mix includes the analysis of the
firm’s product, pricing, promotion and placement. Ufone’s marketing mix can be
2.1.1 PRODUCT:
Ufone understands the value of words and the need to communicate effectively and
efficiently at all levels of society, which is why company’s primary focus is on U. Ufone offers,
Prepay & Postpay services in the Telecom sector.
 Ufone Prepay:
Ufone prepay is the product segmented for the youngsters. They are
segmented on the basis of their age and status. They recharge through the
prepaid cards whenever they feel comfortable to load the cards.
 Ufone Postpay:
Ufone Postpay is created for the executives and business class
people, who require making calls within the country or internationally
for the business purposes. Business executives enjoy the benefits and
value added services connected with Postpay product of Ufone
 Ufone For Everyone:

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.
 U-Circle:
Prepay provides an easy way to call Friends & Family. Ufone is making it easy for its consumers
to call friends & family with U Circle. Now the consumers can talk more for less with the most
economical rates to call their Ufone Circle.
 U Share:
Ufone Prepay customers can now share their balance with each other
through a simple SMS in 3 easy steps.
 Mobile Number Portability:

Ufone welcomes consumers to bring their mobile number to the best service. Through
Mobile Number Portability (MNP), mobile phone subscribers can retain their mobile phone
numbers when they change mobile operators. Therefore a 0300-xxxxxx or 0345-xxxxxxx can be
a Ufone customer in the MNP regime.
2.1.2 PRICING:
As compare to other telecommunication companies, Ufone offers its services with lower
and affordable rates. The price of product matters in the market but low price with high density
service is not an easy task to accomplish. For the satisfaction of valued consumer Ufone merged
the low Price and high density services with wide network.
Both, the Prepay & Postpay tariff are being defined as follows:
Uwon:
Ufone to Ufone 24 Hours Re 1.00 / Min
Ufone to Other Mobiles 24 Hours Rs 1.60 / Min

Ufone to PTCL 24 Hours Rs 1.60 / Min
Ufone to International 24 Hours Standard rates apply
Ufone to Ufone 24 Hours Re 0.50 / SMS
Ufone to Other Networks 24 Hours Re 1.00 / SMS

Ufone to PTCL 24 Hours Rs 1.00 / SMS
International 24 Hours Rs 2.50 / SMS
2.1.3 PROMOTION:
For the promotion of product, print media, electronic media, billboards, broachers and
leaflets has been utilized for the awareness of various customers. Time to time, Ufone promotes
its services / schemes to their users and general public via using various type of promotion
channels. Through the advertisements people get awareness about the product and are able to
choose the best one for fulfill their requirement in Mobile Telecommunication.
 Electronic media:
Ufone is making use of electronic media through Television advertisements. fone is
having its great deal of advertisement on television, to aware its consumers about the latest
product offerings. The interesting part is that Ufone is sticking with its humorous appeal and is
doing really good in it. Ufone is famous for its own style of humorous advertisements which are
truly becoming the talk of the town. Ufone is motivated with providing best ads to people with
quick service. Advertising campaign is special and impressive than other cellular companies, like
concept, models, colors scheme and visualizing. The advertisement of post pay has been very
much attractive for the business class customers with the slogan of endless possibilities.
 Print Media:
Ufone is actively providing its advertisements in print form as well. They are using various
ways as a means of promoting the brand. Ufone’s advertisements can be seen
in newspapers and magazines. Ufone is vigorous in attracting people and making them upo date
about any new information through print media as well.
 Billboards:
Billboards (Including skyscrapers) are the key sources for the promotion of Ufone.Ufone is
also in practice with placing billboards to the prominent areas, which are having the most contact
of the people. These billboards are the reminders of the brand through which people get
attracted. New packages or any updates about the product features are displayed. Different kind
of advertisement can be seen on Television and billboards. Ufone is also a co-sponsor of Cricket
World Cup 2007. Moreover, the shops title boards are also being sponsored by Ufone over all
Pakistan. Now retail stores and shops have also “adopted” the mobile brands. People are seeing
fabric stores, toy stores and even doctor’s offices displaying the phone company brand
signboards.
 Internet Marketing:
There are users who are active users. They are in continues contact with www i.e web.
These users try to find the solutions through internet.Ufone website (www.ufone.com) contains
bunch of information about the product, services, coverage, placement, and value added services.
Website is playing a leading and significant role for the promotion of product. Ufone is
promoting its brand through cyber marketing in which they have placed their brand’s slogans and
latest reviews. For example they have placed banner ads on various sites. The renowned
community FACEBOOK is also having its advertisements on the right pane of the window. Call
operators of customer service department are professional and proficient to resolve consumer
problems and they are 24 hours available to respond customer’s query.
2.1.4 PLACEMENT:
Ufone added 5.0 million subscribers in 2008-09 as compared to its addition of 6.5 million
in previous year. Ufone has added the highest number of cell sites in 2008-09 and that addition
was 1,920 new cell sites during 2008-09. With addition of these, Ufone total cell sites have
reached to 3,641. Ufone is the network operator which Operates with a network of more than 397
franchises and company-owned customer service centers along with a distribution network of
156,400 outlets nationwide. Ufone is covering over 5642 key destinations. Ufone is the ultimate
means to stay connected wherever business takes consumers allowing seamless roaming through
the network providing the best nationwide coverage. Ufone, being one of the leading cellular
service providers has recently launched its service in many new cities. Keeping up with its pace
it is rapidly expanding its network. Ufone keeps on adding new cities with same superior
network that continues to expand. Ufone covers all major cities of Pakistan now consumers can
enjoy comprehensive coverage in areas like the GT Road, Super Highway & Motorway etc. So
wherever they are in Pakistan, Ufone keeps them connected.
 Ufone’s Network Up gradation:

Under the agreement, Huawei will provide its future-oriented EnerG GSM solution to
expand Ufone's network to cover over 1,500 cities, towns, villages and all major highways in the
country. The network also allows Ufone subscribers to enjoy high-speed wireless data service.
The GSM contract for Ufone also include Huawei's new generation GSM dual density BTS that
feature high integrated and receiving sensitivity to improve the network performance and lower
the cost of network construction and O&M expenditure. In addition, Huawei will provide Mobile
Softswitch solution based on the advanced R4 architecture to satisfy Ufone's network expansion
requirements, enables the telecom service provider to evolve into 3G smoothly
2.2 Market Segmentation:

Ufone is segmenting the market according demographic segmentation, i.e. on the basis of
age groups. Ufone has segmented its product on the basis of its features.
 Ufone Prepay is segmented for the youngsters, whit attractive packages to their
requirements
 Ufone Postpay is segmented for the people of mature age, having their own business,
belongs to business class or people who are senior executives of the organizations
2.3 Target Market:

Ufone has the target market concerning youth in the nation. This target market of
youngsters comprises of the 40% population. Ufone is having focused advertising towards the
target market simultaneously focused brand building over the market segment of youth. Ufone is
targeting the emerging segments of middle class in the population to increase the number of
subscribers as well as the revenue generation from these subscribers Ufone has also targeted the
corporate class, for which Ufone is customizing the packages in order to preserve the existing
small but profitable corporate of SME market segment.
2.4 Market Dominance:

Ufone is having a concept of Market dominance. Ufone is a measuring the strength of its
brand, product, service, and firm, relative to competitive offerings. For being competitive in the
market and while following the strategies based on market dominance, Ufone has become the
LEADER, instead of follower or challenger of new offerings. While being a leader of the various
offerings, it has maintained the marketing of its product within shortest span of time. This
maintenance has been done in order to make people aware about the latest
offerings of the Ufone.
2.5 Market Differentiation:

Due to aggressive competition in Pakistan mobile companies, the operator needs to
differentiate their product from others in order to attract more and more customers. Ufone with
its basic or core product which is becoming homogenous with the other’s products is struggling
to introduce the differentiating offers for the consumers. In the telecom industry, for
differentiating the product means to bring and implement some new and innovative technology.
Technological
improvements at Ufone are continuous process. These practices of bringing something new to
the society at Ufone are emerging in the context of GPRS and 3G services. Ufone is not only
emerging technologies but also maintaining a technological dominance for the services it is
providing. Ufone is coming up with innovative products and becoming pioneer towards the new
arenas. Ufone is launching innovative packages and products for enhancing its revenues. The
basic focus of Ufone is to enhance its VAS- value added services. Ufone is providing as much as
convenience to its consumers as they expect. Some of the value added services offered by Ufone
are
o Missed Call Notification
o Phonebook Saver
o My Ufone Account Services
o Urdu Info Services
o Pocket Data Services
o Virtual Private Network
o Call Features
o Messaging Services
o U-Share
2.6 Pricing objectives of the company:

Pricing objective of the company is to provide their customer the lowest call rate
price and give the better services to the customer ufone for this purpose ufone introduced
many call packages that is suited to every person that used the mobile. Most of the
companies are provide only the one side like the lowest call rates or only lowest rate of
sms rate but the ufone is first company that provides both lowest call and also sms rates.
Company also introduced special packages on special events like the basant, valentine day,
eid-ul-fiter, eid-ul-azha and many others occasion.
2.7 Product mix pricing strategies:

Ufone sets the product line pricing only the price is between Rs.50 to Rs.200 so every
customer can easily buy the product and all the packages are in every person’s range.
Company also provides the balance in sim that is optional the sim that have balance high than
no balance. Captive-Products Pricing is this company introduced the mobile phone that is
lowest price rate and easily available on the ushops and customer care centers. Company
introduced the different modals in different shapes. The companies by products are SMS
GPRS MMS and call features that provide the company that is some are already available on
sim and are on activated on our request. Product-Bundle Pricing of ufone that it provide the
simple phone and also black burry with its sim. Simple mobile phone is for low class like the
students and other prepaid customer and the black burry is for the high class and used the
business class. But the both set can used in prepaid and post paid connection.
2.8 Price adjustment strategies:

Company adjust the different prices on different events and low the price and also
provide the free connection on her shows and street program only the balance price is
charged to the customer the connection is free of cost. Pricing strategies are divided
geographically and product packages when the company introduces its product company
offer the low price and also some time free of cost. Most of the place the company distributes
its connections free and on discount on the different event like Islamic event the company
provides the discounted call rates and also sms rates and provides the new connection on
discounted rates. when the other companies are reduced the price ufone call rates is lowest
compare to other. The advertisements of the company are also attractive compare to other.
many of the other companies also provide the low call rates but the most attractive rates only
ufone.
2.9 Price changes:

Price changes when the company introduce the new package and launched in market
When the other competitors change he price the ufone also change the call rates and also
introduce the other service like the call block services that other companies are not provide
but the ufone provide their customer that they block the call and also the sms. Competition of
the cellular companies in Pakistan is very strong because approximately 5 competitors are in
provide there services in Pakistan and the customer also like that company which provide the
lowest call rates and also the best services compare to other services providers.
2.10 Inflating price changes:

Company change the price with inflating price changes when the other company
change the price low then ufone then company also introduce the other package compare to
the competitors packages but the low price most of the packages are very compatible
compare to the other cellular companies. one of the side is always high like if the calling rate
is low sms rate is high and if the calling rate is high the sms rate is low most of the
companies used this strategy but the Ufone is best that give the both lowest call and sms rate
in one connection.
2.11 Competitor's reactions to price changes:

Other companies are also low their price compare to Ufone but always the Ufone is the
best that give the lowest call rate other companies also introduced different packages that’s
fill only the one side lowest calling rates or the sms rates only most of the perfect compotator
in the market comparatively close to Ufone is Telenor zong is also the a competitor that give
the lowest calling rates and sms bundle but Ufone is the fully perfect all side of the market.
Most of the people used the Ufone. The signal problem is
2.12 Company's responses to price changes:

Company also responds to compotators prices that offer. When the prices of the other
companies are set at low then Ufone also introduced the lowest call rates and distributed the
free connections in market. Ufone also introduced the lowest call rates in international wide
but the other companies are not Ufone is the best I we call the internationally most of the
country the calling rates is less then the other cellular companies.
Chapter 3:
3.1 COMPITETOR INTRODUTION:

Telenor is the perfect competitor of Ufone and also provide the many services of
compare to the Ufone like the Telenor easy paisa that is the largest advantages. The Company
has fastest growing mobile network in the country, with coverage reaching deep into many of the
remotest areas of Pakistan. In the most difficult terrains of the country, from the hilly northern
areas to the sprawling deserts in the south, at times Telenor is only operator connecting the
previously unconnected.
Telenor is keeping ahead by investing heavily in infrastructure expansion. With the
USD2 billion already invested, Telenor has extended agreements with companies vendors for
network expansion and services until 2009. The agreements, with a potential to result in USD750
million worth of orders from Telenor Pakistan, are some of the biggest of their kind in the
industry.
The company spread across Pakistan, creating 2,500 direct and 25,000-plus indirect
employment opportunities. Telenor has a network of 23 company-owned sales and service
centers, more than 200 franchisees and some 100,000 retail outlets.
3.2 MARKETING MIX:

I have also analyzed the marketing mix of telenor. Marketing mix includes the analysis of
the firm’s product, pricing, promotion and placement. Ufone’s marketing mix can be
3.2.1 PRODUCT:
Ufone understands the value of words and the need to communicate effectively and
efficiently at all levels of society, which is why company’s primary focus is on telenor offers,
Talkshawk & persona services in the Telecom sector.
 Telenor talkshawk:
Telenor talkshawk is the product segmented for the
youngsters. They are segmented on the basis of their age
and status. They recharge through the easyload, prepaid
cards whenever they feel comfortable to load the cards.
 Telenor persona:
telenor persona is created for the executives and
business class people, who require making calls within the
country or internationally for the business purposes.
Business executives enjoy the benefits and value added
services connected greats products.
 smart Share:
Telenor prepaid offer the balance share to other friends and family members even any number of
the Telenor

Mobile Number Portability:
Now Telenor offer to every person that can convert their number that has any connection.
when they change mobile operators. Therefore a 0300-xxxxxx or 0345-xxxxxxx can be an Ufone
customer in the MNP regime.
3.2.2 PRICING:
Telenor pricing rates to other telecommunication companies, telenor offers its services
with low and affordable rates. The price of product matters in the market but low price with high
density service is not an easy task to accomplish.
Both, the Prepay & Postpaid tariff are being defined as follows:
Nationwide Call Rates
Charges
To Telenor Friends and Family numbers Rs. 1
To another Telenor number Rs. 2
To any other mobile number Rs. 2
To another PTCL number Rs. 2
Inclusive of Interconnect and long distance charges
All outgoing calls/airtime usage is subject to 19.5% CED only
Free Services
All Incoming Calls
Caller Line Identification (CLI)
Call Waiting
Conference Calling (subscription)
Roaming (anywhere in Pakistan)
SMS
Outgoing Rs. 1.00
Incoming Free
Outgoing International Rs. 5.00
MMS, Internet & WAP
Subscription Free
MMS-Receiving Free
MMS-Sending Rs. 5.00
Internet/WAP Usage
Rs. 15.00
(Upload/Download per MB)
Internet Bundle
3.2.3 PROMOTION:
For the promotion of product, print media, electronic media, billboards, broachers and
leaflets has been utilized for the awareness of various customers. Time to time, telenor promotes
its services / schemes to their users and general public via using various type of promotion
channels. Through the advertisements people get awareness about the product and are able to
choose the best one for fulfill their requirement in Mobile Telecommunication.
 Electronic media:
Telenor is making use of electronic media through Television advertisements. Telenor is
having its great deal of advertisement on television, to aware its consumers about the latest
product offerings. The interesting part is that Telenor is sticking with its humorous appeal and is
doing really good in it
 Broachers:
Telenor is actively providing its advertisements in print form as well. They are using
various ways as a means of promoting the brand. Advertisements can be seen in newspapers and
magazines. Telenor is vigorous in attracting people and making them up to date about any new
information through print media.
 Billboards:
Billboards are the key sources for the promotion of Telenor. These billboards are the
reminders of the brand through which people get attracted. New packages or any updates about
the product features are displayed.
 Internet Marketing:
There are users many who are active because it is the foreign company and investing in
Pakistan. They are in continues contact with web. These users try to find the solutions through
internet website of Telenor is www.telenor.com and for Pakistan www.telenor.com.pk. Website

is playing a leading and significant role for the promotion of product. They have placed banner
ads on various sites. The renowned community FACEBOOK is also having its advertisements.
Call operators of customer service department are professional and proficient to resolve
consumer problems and they are 24 hours available to respond.
3.2.4 PLACEMENT:
Telenor added 4.8 million subscribers in 2008-09. Telenor total cell sites have reached to
3,471. Telenor is the network operator which Operates with a network of more than 356
franchises and company-owned customer service centers along with a distribution network of
143,600 outlets nationwide. Telenor is covering over 5442 key destinations. Telenor is the
ultimate means to stay connected wherever business takes consumers allowing seamless roaming
through the network providing the best nationwide coverage.
 Up gradation through easy paisa:

Telenor up grade its function the easy paisa shops it is
the better then the other customer can easily pay its bill through
Telenor easy paisa shop. Telenor starts its work with tamer
bank.
3.3 Market Segmentation:
Telenor is segmenting the market according demographic
segmentation, i.e. on the basis of age groups. Ufone has
segmented its product on the basis of its features.
 Telenor talkshawk is segmented for the youngsters, with attractive packages to their
requirements mostly used for the call
 Other prepaid Telenor dejuice mostly used young generation for sms.
 Telenor persona is segmented for the people of mature age, having their own business,
belongs to business class or people who are senior executives of the organizations
3.4 Target Market:

Telenor has the target market concerning youth in the nation. This target market of
youngsters comprises of the 40% population. Telenor is having focused advertising towards the
target market simultaneously focused brand building over the market segment of youth. Telenor
also targeting the middle class in the population to increase the number of subscribers as well as
the revenue generation from these subscribers and has also targeted the corporate class.
3.5 Market Dominance:

Telenor have a concept of Market dominance and measuring the strength of its brand, product,
service, relative to competitive offerings. For being competitive in the market and while
following the strategies based on market dominance, Telenor is challenger of new offerings
because it is foreign company and not completely knows the attitude and the culture of the
population.
3.6 Market Differentiation:
Due to aggressive competition in Pakistan mobile companies, the operator needs to

differentiate their product from others in order to attract more and more customers. Telenor with
its basic product which is becoming better then other competitor with the other’s products is
struggling to introduce the differentiating offers for the consumers. In the telecom industry, for
differentiating the product means to bring and implement some new and innovative technology.
Technological
Improvements at Ufone are continuous process. These practices of bringing something new to
the society at Ufone are emerging in the context of WAP and EDGE and GPRS services. Ufone
is providing as much as convenience to its consumers as they expect. Some of the value added
services offered by Ufone are
o Missed Call Alert
o Phonebook Saver
o Account Services
o Entertainment
o Urdu Info Services
o Smart tune
o Call Features
o Messaging Services
o Smart share
3.7 Pricing objectives of the company:

Company objective is to provide their customer the low call rate price and give the
better services to the customer. For this purpose ufone introduced many call packages that
is suited to particular person that used the mobile. Company used the market segmentation
geographically, age and financially. It is also provide the lowest call rate and sms rates in
different connection then every person can easily used that is perfect for him so it is the
best strategy of the company. Company also introduced special packages on special events
like the basant, valentine day, eid-ul-fiter, eid-ul-azha and many others occasion.
3.8 Product mix pricing strategies:

Telenor sets the line pricing only the price is between Rs.100 to Rs.300 so customer
can buy the product and all the packages are in every person’s range. Company also provides
the balance in sim that is optional. Sim that have balance higher pricing rates than that have
no balanced. The companies by products are SMS GPRS MMS and call features that provide
the company that is some are already available on sim and are activated on our request.
3.9 Price adjustment strategies:

Company adjust the different prices on different events and low the price and also
provide the free connection on her shows and street program only the balance price is
charged to the customer the connection is free of cost. Pricing strategies are divided
geographically and product packages when the company introduces its product company
offer the low price and also some time free of cost. Most of the place the company distributes
its connections free and on discount on the different event like Islamic event the company
provides the discounted call rates and also sms rates and provides the new connection on
discounted rates. when the other companies are reduced the price ufone call rates is lowest
compare to other. The advertisements of the company are also attractive compare to other.
many of the other companies also provide the low call rates but the most attractive rates only
ufone.
3.10 Price changes:

Price changes when the company introduce the new package and launched in market
When the other competitors change he price the ufone also change the call rates and also
introduce the other service like the call block services that other companies are not provide
but the ufone provide their customer that they block the call and also the sms. Competition of
the cellular companies in Pakistan is very strong because approximately 5 competitors are in
provide there services in Pakistan and the customer also like that company which provide the
lowest call rates and also the best services compare to other services providers.
3.11 Inflating price changes:

Company change the price with inflating price changes when the other company
change the price low then ufone then company also introduce the other package compare to
the competitors packages but the low price most of the packages are very compatible
compare to the other cellular companies. one of the side is always high like if the calling rate
is low sms rate is high and if the calling rate is high the sms rate is low most of the
companies used this strategy but the Ufone is best that give the both lowest call and sms rate
in one connection.
3.12 Competitor's reactions to price changes:

Other companies are also low their price compare to Ufone but always the Ufone is the
best that give the lowest call rate other companies also introduced different packages that’s
fill only the one side lowest calling rates or the sms rates only most of the perfect compotator
in the market comparatively close to Ufone is Telenor zong is also the a compotator that give
the lowest calling rates and sms bundle but Ufone is the fully perfect all side of the market.
Most of the people used the Ufone. The signal problem is
3.13 Company's responses to price changes:

Company also respond to the compotators prices that they offer so when the prices of
the other companies are set at low then Ufone also introduced the lowest call rates and
distributed the free connections in market. Ufone also introduced the lowest call rates in
international wide but the other companies are not Ufone is the best I we call the
internationally most of the country the calling rates is less then the other cellular companies.
Chapter 4:
4.1 Methodology:
A total of 4 respondents were surveyed in Faisalabad due to short time. All respondents
were surveyed by Questionnaire during June - July 2010, and were qualified as propose check
the calling rates of the Ufone, Telenor and its users. The study has a standard error of + 2.8%.
Regarding to our target, Over 56.3% of the respondents surveyed are willing to buy Ufone and
53.7% of Telenor.
4.2 Data Collection Tools:

There are many kinds of data collection tools but we collect data through the
questionnaires and interview. It is the original data and easily analyzes it.
4.3 Data Collection Sources:

There are two sources for the data collection, primary and secondary sources:
4.3.1 Primary Source:

Primary sources are original works off or pronouncement that represents an official
opinion or position. Our primary research will be based on connection prices on different events
and information gathered through questionnaires. As per my requirement to know about the
pricing strategies of Ufone and Telenor brands I have been conducting Open ended questions and
close ended Questions those will allow us to understand and making bright picture of pricing
strategies.
4.3.2 Secondary Sources:

Secondary research includes information from magazines, internet, encyclopedia, books,
newspaper articles, etc. We have conduct secondary research from Internet, Journals, magazines,
newspaper, etc.
4.4 Sample size:

Sample size is 120 people in different age different area and divided with different
financial positions.
4.5 Sampling technique:

Sampling technique is without replacement and the sampling frame is segmented with age
and financial position and geographically.
Chapter 5
Data processing analysis & interpretation
The data processing and analysis is the focal point of results which we able to understand
about right or wrong, good or bad, like dislike etc. the data processing and analysis tool is very
essential to find out the result in good manner it provide us clear picture all about our research
related for that I will recommend the tool of SPSS 17.0 this tool will help me in analysis data that
I have been gathering from the different sources then put them in the computer system program
and then by computerized process it will provide me results for my research and it is enough for
my research which I have need to go through processes. The data gathered through the primary
and secondary sources will be analyzed by qualitative methods. Conclusion and analysis will
also be included in the report. The other mathematical tools like graphs, bar diagrams, pie charts
and line diagrams will also be used for the deep and comprehensive analysis of the data.
Questionnaire Analysis
Question: In how much price you have bought the connection?
400
350
300
250
Telenor
200
Ufone
150
100
50
0
2006 2007 2008 2009
Analysis
This graph is showing about the price of new connection purchased it is clear form the
graph that rate of both of the companies is falling down year by year it representing that Telenor
sim price in 2006 was 350 Rs. And Ufone price is the same year 300Rs. In 2007 the rate fall
down and new rate of Telenor was 325 and Ufone remain same. In 2008 fall down and new rate
represent on graph 175 and Ufone is 150 respectively. In 2009 telenor 140 and the Ufone is 120.
so we analysis that he Ufone is cheaper than Telenor.
Question: Why you use this connection?
70%
60%
50%
Percentage
40% Telenor
30% Ufone
20%
10%
0%
Low rates Urben area Rural area costumer
care
Reason
Analysis:
The graph is showing that 45% users are of Telenor due lowest rates and the 55% or Ufone. In
urban area 40% Telenor and Ufone 60% in rural area 65% Telenor and Ufone 35% and
according to customer care the 50% ufone and 50% is Telenor. So this graph shows that the
Telenor is best because the strong signals.
Question: How many charges for calling rates?
2.5
2
Rupees
1.5 Telenor
1 Ufone
0.5
0
On netw ork Off Netw ork To Ptcl Favorite
Numbers
Calling rates
Analysis:
This graph is showing the call rates of the both companies. And it is helpful for us to comparing
the calling rates of companies. The graph is showing that rate of the ufone is 1RS.from ufone to
ufone but telenor is 2RS for 1min from telenor to telenor. And telenor provide 2RS for off net
(other networks) and ufone provide 1.5Rs for off net. And also a graph is showing the call rates
on PTCL. Telenor is providing a call of 1min for 2Rs.but Ufone is providing a call of 1min only
for 1.5Rs.Also both companies provide a good option for costumers that they can make their
own favorite numbers and both companies provide a call of 1min for 1rs only.
Question: Is your company provides special or discounted calling rates at your connections on
special events?
80%
60%
Ufone
40%
Telenor
20%
0%
Yes No
Analysis:
The graph is about the special packages that customers company provide than we see that
the ufone 70% user are said that the company provide the special offer on eid, basant or other
differ events. Only 30% user said that ufone not provide the special package but against the
ufone telenor user said that the telenor not provide the special offer on any event only 40% say
yes and 60% says no. so we can easily said that the ufone is the best for every point of view.
Question: is your company received extra charges when new package is introduced?
80%
60%
Ufone
40%
Telenor
20%
0%
10-25 25-50
Analysis:
every body knows that when new package in introduced the cellular company charge the extra
prices to convert no this package it is the other way to recover the cost of production. So ufone is
charge the only 70% population of ufone said that company charge only 10 to 25 rupies to
convert on the new package and remaining 30 percent says that the company charge above Rs.
25 on other hand the telenor charge the above Rs. 25 most of the packages that are introduced.
And other packages that’s calling rates are not competitive less then Rs. 25 compare to ufone.
Telenor user 75% population said that the company charge the above the Rs. 25
Summery
After the above questionnaires and its analysis we find that the both of the companies the
ufone and Telenor is the highly competitors and wants to provide the best services to the
customers. We also see that the ufone is provide the connection a the lowest price and telenor
provide connection at high price compare to ufone. Ufone is user is large then the telenor and
also in the urban area mostly the ufone connection is used compare to telenor and in the rural
area telenor is used mostly because there is signal problem in ufone in the rural area and then the
telenor connection is used in that area that us far away form the cities. Other important point is
the calling rates of the ufone is lower than the telenor ufone provide the low calling rates and
telenor calling rates are high. Most of the packages calling rates of ufone is low compare to the
telenor like in the package of 30 second and the 60 second and the ufone introduce the many
packages compare to the telenor. Telenor introduced only 5 packages but the ufone introduced
approximately 8 packages.
In the most important event like the eid independence day and other many events ufone provide
special offer like ufone increase the advance balance that provide at when the balance finished
but telenor is only 5 rupees ufone is also provide the free minutes on special events but the
telenor not provide the competitive packages. The Ufone Company received only few charges
when the ufone user want to convert on other packages but in the other hand the telenor received
the high charge compare to the ufone in the question we can easily differenciate that the ufone is
the best packages that is comparatively good from the telenor. Most of the population used the
ufone only the rural area the ufone is used less number and only few people used the telenor in
urban area.
In other hand the ufone advertising and other advertising channels also good compare to the
telenor.
CHAPTER# 6
Conclusion, Recommendation and Limitations
6.1 Conclusion:
The reasons that can be given to provide justification to our conclusion are as follows:
According to the objective we conclude that ufone maximize the profit compare to the ufone
because most of the people used the ufone and the pricing and advertising strategies are also
good compare to telenor and the calling rates are also good compare to telenor.
When the company low the calling rates and introduced the special offer its mean that the
company want to provide the best calling rate and also attract the maximum peoples. So the
ufone calling rates and the special offer, discounted rates better compare to telenor.
New package is introduced the most of the companies charged the extra charges when a
user convert there connection on this package, ufone charge the lowest converting charges on
any packages but the telenor is charged the two time to five time higher compare to ufone it is
another disadvantage of telenor.
Company also checks that where the company stay at this time in the market and introduce
and tell their customer but in the telenor user also not know where the company stay at this time.
In other feature like the call filter call tracker and online phone book, other feature is not
introduced the telenor. Most of the important is the ufone double number offer. Many of the
features are that the telenor not introduced.
Both of the companies introduced the many packages like the 30 second 60 second and
other packages when we compare this package the ufone introduced approximately 8 packages
and telenor only the five package that is also have the high calling rates compare to the ufone
package.
Recommendation:
In the light of entire project I would like to highlight some recommendation I found that in
the light of pricing strategies of Ufone and Telenor gaining more and more competitive
advantage because it purely involved according to the Pakistan environment but Telenor has
some weaknesses which Ufone has to keep on focusing in the customers’ point of view like
 Both companies low the then the customer attract the companies the Calling rates of
Ufone is the low compare to Telenor and other compotators also. Customer care center
and the other extra service like the sms block and call block and black berry service are
great advantage in favor of Ufone.
 Telenor low its calling rates same to Ufone and improve its services and the connection
rates is also set at Ufone connection rates.
 Ufone improve its signal problem in all over the Pakistan specially in the rural areas and
that areas who are long distance from the cities.
 Telenor and Ufone also introduced the quick shops that facilitate the customers and then
there is a perfect competition
 Ufone also introduce the customer care like he easy paisa then Ufone became an other
good service that is only in hand of Telenor
 Telenor has to improve its quality sales, service because the pricing strategies depend on
the quality and the best calling rate and is also sustained by truth, fairness, good dealing,
and friendly attachment with there customer.
6.2 Limitations:
 Due to time and resource constraints, only college students are selected for the study for
making an analysis for the advertising strategies.
 Due to resource and time constraints, a randomly selected sample has been chosen
respondents for making an analysis of advertising effectiveness on consumers.

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Compare the pricing strategies of "Ufone" with "Telenor" in prepaid connection 1

COMPARE THE PRICING STRATEGIES OF

Department of management sciences

3.5 Market domination………………………………….. 18

Their introduction is as under partially

1.2 Background Of Project:

1.3 Companies introduction:

1.4 List of Competitor:

1.5 Project Objective:

1.6 Significance of the project:

2.1 MARKETING MIX:

 Ufone For Everyone:

 Mobile Number Portability:

Ufone to Ufone 24 Hours Re 1.00 / Min

Ufone to Other Mobiles 24 Hours Rs 1.60 / Min

Ufone to International 24 Hours Standard rates apply

Ufone to Ufone 24 Hours Re 0.50 / SMS

Ufone to Other Networks 24 Hours Re 1.00 / SMS

International 24 Hours Rs 2.50 / SMS

 Ufone’s Network Up gradation:

2.2 Market Segmentation:

2.3 Target Market:

2.4 Market Dominance:

2.5 Market Differentiation:

2.6 Pricing objectives of the company:

2.7 Product mix pricing strategies:

2.8 Price adjustment strategies:

2.9 Price changes:

2.10 Inflating price changes:

2.11 Competitor's reactions to price changes:

2.12 Company's responses to price changes:

3.1 COMPITETOR INTRODUTION:

3.2 MARKETING MIX:

Nationwide Call Rates

To Telenor Friends and Family numbers Rs. 1

To another Telenor number Rs. 2

To any other mobile number Rs. 2

To another PTCL number Rs. 2

Inclusive of Interconnect and long distance charges

All outgoing calls/airtime usage is subject to 19.5% CED only

All Incoming Calls

Caller Line Identification (CLI)

Conference Calling (subscription)

Roaming (anywhere in Pakistan)

Outgoing Rs. 1.00

Outgoing International Rs. 5.00

MMS, Internet & WAP

MMS-Sending Rs. 5.00

internet website of Telenor is www.telenor.com and for Pakistan www.telenor.com.pk. Website

 Up gradation through easy paisa:

3.4 Target Market:

3.5 Market Dominance:

Due to aggressive competition in Pakistan mobile companies, the operator needs to

3.7 Pricing objectives of the company:

3.8 Product mix pricing strategies:

3.9 Price adjustment strategies:

3.10 Price changes:

3.11 Inflating price changes:

3.12 Competitor's reactions to price changes:

3.13 Company's responses to price changes:

4.2 Data Collection Tools:

4.3 Data Collection Sources:

4.3.1 Primary Source: