Internship Report on Ufone Telecom
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Transcript of Internship Report on Ufone Telecom
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.
I
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 I
Acknowledgement II
Table of Contents III
Executive Summary VI
Chapter 1 Introduction of Study 01
1.1 Background of the Study 01
1.2 Purpose of Study 02
1.3 Scope of Work 02
1.4 Methodology of the Report 02
1.5 Scheme of the Report 02
Chapter 2 Overview of Ufone 05
2.1 History of Pakistan Telecommunication Authority 05
2.2 Pakistan Telecommunication Company Ltd 05
2.3 History of PTML Ufone 07
2.4 Mission Statement of Ufone 08
2.5 Overview of Ufone 09
2.6 Management Profile of Ufone 10
Chapter 3 Profiles of Different Departments 15
3.1 Human Resource Management 15
3.2 Technology Department 16
3.3 Finance Department 17
3.4 Audit Department 18
3.5 Marketing Department 19
3.5.1 Marketing Department 19
3.5.2 Marketing Strategies 20
3.5.2.1 Market Segmentation 20
3.5.2.2 Target Markets 21
III
3.5.2.3 Positioning 22
3.5.2.4 Differentiation 23
3.5.2.5 Customer Relationship 23
3.5.2.6 Total Market Orientation 24
3.5.2.7 Competitors 24
3.5.3 Market Share 26
3.5.4 Advertising Objectives 27
3.5.5 Ufone Brand 28
3.5.5.1 Prepaid 29
3.5.5.2 Post Pay 29
3.5.6 BlackBerry 29
3.5.7 Recharge Option 30
3.5.8 Detail of Prepaid Calls 31
3.5.9 International Calls 32
3.5.10 Conference Call 32
3.5.11 Collect Call Service 33
3.5.12 Call Block Service 33
3.6 Favorite Cellular Operator 2009 34
3.7 Best Brand Award in Telecom in 2009 for Ufone 35
Chapter 4 Performed Activities as an Intern 36
4.1 Visit of Different Offices 36
4.2 Visit of Mobile Shops 37
4.3 Dealing with Customers in Franchise 38
Chapter 5 Critical Analysis 39
5.1 Ufone SWOT Analysis 39
5.1.1 Strengths 39
5.1.2 Weaknesses 40
5.1.3 Opportunities 41
5.1.4 Threats 42
5.2 Competitive Advantages 43
5.3 Challenges 43
IV
5.4 Plans for Future 43
Chapter 6 Recommendations & Conclusion 45
6.1 Recommendations 45
6.2 Conclusion 47
Bibliography 48
V
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
VII
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 29’2001. Since Etisalat took over PTCL in 2006, during the year as a
consequence of PTCL’s privatization, 26% of its shares were acquired by Emirates
Telecommunication Corporation (Etisalat). Being part of PTCL, the management of
Ufone has also been handed over to Etisalat.
1
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.
4
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.
5
This coincide with the Government's competitive competitive policy, encourage
private sector participation and resulting in award of licenses for cellular, card-
operated 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 post-
monopoly era came with Pakistan’s Liberalization in Telecommunication in January
2003. On the Government level, a comprehensive liberalization policy for telecom
6
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 PTCL’s 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 Ufone’s signature across all advertising media, Ufone
gives its customers many reasons to smile.
7
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 Pakistan’s largest GPRS & BlackBerry Roaming coverage available with more
than 150 Live Operators across 105 countries. More recently, Ufone has become a
focused and intensive leader in VAS, constantly introducing innovative services,
which have been the first of their kind in the Pakistani cellular industry.
As the world of telecommunications advances, Ufone promises its customers to stay
ahead, developing and evolving, to go beyond their expectations, because at Ufone,
it’s 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, it’s all about U!
2.4 Mission Statement of Ufone
“To be the best Cellular option for U”
8
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.
Ufone’s 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.
9
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 Mr. Moqeem ul
Haque
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 department’s
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 organization’s
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
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
HR Department
Training&
Development
Outsource Operation
HR Operations
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, country’s 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
parent’s company. Telecom analysts provided reasons behind Ufone’s steadiness in
hostility the terrible situations, saying that Ufone’s 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
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
Marketing
BrandMarketing
Marketing Operations
International Roaming
VAS
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 Upper Class, Middle Class, Socio Economic Class, Lower
Class
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
Top Reason for Customer to Remain with Ufone
6.15%
27.60%
0.79%1.10%
31.07%
2.37%3.47%
12.62%14.83%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Low On-Net CallRates
Low Of-Net CallRates
Hourly Packages(Night)
Hourly Packages(Day)
SMS Packages
GPRS,EDGERates
GPRS,EDGESpeed
Coverage &Netw ork Quality
Best CustomerSupport
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.
Ufone’s previous Positioning Statement: “Everybody Loves to Ufone Prepay “
Ufone’s new Positioning Statement: “Ufone tum hi toh ho!” Or “It’s 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.
3.5.2.4 Differentiation
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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.
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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 customer’s 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
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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
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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
Cash Cows
Dogs
High Low
3.5.3 Market Share
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
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Relative Market Share
?
G r o w t h
R a t e
High
Low
maximum shares in market. Now customers have enhanced and more choice to select
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.
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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Mobilink 36.39%
2008_2009
Ufone 20.56%
Warid 17.6 %
Telenor 20.59%
Insta phone0.36%
Zong 4.49%
0.04%
Warid 18.96%
Mobilink,
30.88%
Telenor, 22.15%
Ufone 21.20%
Zong, 6.77%
Insta phone,
Mobilink Telenor Ufone Zong Insta phone Warid
2009_2010
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
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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 one’s laptop, office
computer and can also be linked with web mailbox. Blackberry is advance technology
device which is simple and easy to use like:
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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 you’re prepaid easily. It is the easier and
simply way to recharge. The denominations of scratch cards are;
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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Rs.100 6 months
Rs.250 6 months
Rs.500 1 year
Rs.1000 1 year
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 paisa’s 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.
3.5.10 Conference 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.
3.5.12 Call 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
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0%
5%
10%
15%
20%
25%
30%
Warid Telenor Ufone Mobilink Zong
Warid
Telenor
Ufone
Mobilink
Zong
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 Visit of different offices
2 Visit of Mobile shops
3 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
and send SMS with low rates. The Ufone know that people want to touch with
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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 company’s 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.
Ufone has Wide network. Ufone has a wide-ranging promotional
strategy.
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
40
Weaknesses contain internal limitations and negative situational factors that may
obstruct with the company’s 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:
Ufone’s major opportunity two-faced in front near future is the phase of
adaptation of their GSM technology & 3G (satellite based) technology.
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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:
Ufone’s 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
It’s a benefit over competitors gained by present consumers’ superior value than
competitor’s 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 customer’s 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
the franchises. The franchises appoint their own sales staff and salaries are settled
46
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 employee’s
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 isn’t 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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