Executive Summery

Ufone is the second largest cellular network in Pakistan. The head office of the Ufone is located
in 13-B, F-7 Markaz Islamabad, Pakistan. Every Organizational whether its multinational,
private business or Govt. Offices depend on its people. Telecom industry is growing in Pakistan
with new companies is getting license the competition is though as a result is the consumer is
getting benefits and enjoy low call rates. With a population of 15 million countries Ufone is one
of the best telecommunication networks that generate revenue. Ufone Company commenced its
operations under the brand name of Ufone from Islamabad on January 29 2001. Ufone Provide
two kinds of Services that is Ufone Prepay and Post pay. In postpaid they provide a lot of
packages such as Uwon, Ushare. Public Demand etc. in post paid they provide a Black berry,
payment choice, value added service etc.
Ufone has always played a vital role in the development of cellular market in Pakistan. It has
been a step ahead in introducing a innovative product in the market. Ufone adopted the policy of
simplified tariffs with no hidden charges. Ufone targeted the middle class, by introducing low
rates. Ufone has network coverage in more than 5885 locations and across all major highways of
the country. Mobilink has 910,000 subscribers and Ufone has 565,000 subscribers. According to
the latest marker survey there is 70.64% annual growth in this sector. So when Ufone will
change their technology the market is open for them because their prices are low and they are
catering to middle and lower middle class which has quite big ratio in Pakistan.
INTRODUCTION

The company commenced its operations under the brand name of Ufone from Islamabad on
January 29 2001. Ufone expanded its coverage and has added new cities and highways to its
coverage network. After the privatization of PTCL, Ufone is now owned by Etisalat.
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. During the years, Ufone continued on the path to
success. The Company further expanded its coverage and has added new cities and highways.
Ufone has network coverage in more than 5885 locations and across all major highways of the
country.
During the year Ufone adopted the policy of simplified tariffs with no hidden charges, which
resulted in positive impacts on the usage trends of subscribers as well as total subscriber base,
which has increased to 19.4 million. Ufone currently caters for International Roaming to more
than 230 live operators in more than 130 countries and introduced International roaming facility
for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates,
Singapore, Portugal, Thailand, Cyprus, Bangladesh, Uzbekistan, Tunisia, Sri Lanka,
Belgium and Kuwait with lowest rates, featuring no security deposit and activation charges.
GPRS Roaming facility is available with more than 115 Live Operators across 85 countries. The
company has also been awarded a new License for providing cellular services in Azad Jammu &
Kashmir and Northern Areas.

HISTORY
In 1990, Pakistan introduced its first mobile phone service called “Paktel”. After eleven years in
January 2001, a new cellular company with GSM technology came into the market and they
named it Ufone. The government of Pakistan granted them the license of Pak Telecom mobile
limited to operate GSM 9000 all Around Pakistan. Ufone succeeded to establish itself in the
market by providing quality service at low rates. After it’s opening, initially they started their
service in major cities like Rawalpindi, Islamabad, Karachi and Lahore and on major highways.
Later the service expanded to other major cities like Peshawar, Quetta and different towns.
Ufone invested around $ 65 million to setup its modern technical infrastructure to provide high
quality crystal clear voice and fast data transmission. Ufone targeted the middle class, by
introducing low rates and different packages with Urdu names like Jazba etc to attracted lower
and middle class people. Ufone has expanded its customer support in a very organized manner
with a planned network of dealers, outlets for people convenient. Ufone is committed to care
for its customers even after they have acquired a new connection.
Ufone not only focused on the technical capabilities, but to provide subscribers a convenient
to get connections and services. Ufone recently started GPRS through which users can connect
themselves to the global village via Internet, also introduced multimedia messaging services and
worldwide SMS at flat rates. Not only SMS but also provides Ufone Info service through which
user can get latest information about news, sports, religion, horoscope, stock exchange etc even
live sports updates. The tariff packages have been designed keeping in mind the requirements of
every segment of the society may that be a housewife, a taxi driver, a trader or a student.
Ufone started its operation from Islamabad on 29th January 2001. Cellular industry performance
in Pakistan before the launch of Ufone was quite dismal, with one of the lowest population
penetration rates in the Whole region. Ufone’s strategy from the day one was to change this
scenario and ensure that mobile phones are turned into an everyday business and
personal communication tools for all. This approach brought about a revolution in the market;
increasing its size five fold in a mere two years. Ufone’s own performance in these two years has
been exemplary, as it surpassed all financial and marketing goals. Despite Ufone’s strategy to
provide a high standard of service rather than increasing subscriber base without capacity, it has
achieved a substantial market share in a market ten years older than itself.

HEADQUARTER
The head office of the Ufone is located in 13-B, F-7 Markaz Islamabad, Pakistan and it covered
area is 2336 cities of Pakistan, GT Road, Super Highway & Motorway.
MISSION
"Ufone, it's all about U! We are where you want to be…
…At Ufone we aim to provide you with wider coverage, superior connectivity, clear signals &
voice quality. Wherever you are, Ufone keeps you connected."

VISION
“To be the leading telecommunication service provider in Pakistan by offering innovate
communication solutions for our customers while exceeding shareholder value & employee
expectation.”

OBJECTIVES
Ufone is a dynamic organization with a powerful culture that allows people to make the most of
their skills, personality and career. I developed such knowledge and skills which directed to my
career. Customer Service Ufone is proud to have an efficient and friendly customer service
through 21 company-owned Sales & Customer Service Centers and nearly 250
franchisees across the country. The outlets are able to service the customers with
innovative solutions, and are empowered with Web based franchise management systems.
Ufone is poised to face the ever increasing challenges of the market and is confident it will
attract new customers. It has the ability to retain its existing customer base with a high level of
customer satisfaction via optimum network service and a 24 hour call center facility.

Departments in Ufone
The Following departments are currently working:
• Human Resource Management
• Marketing Department
• Commercial Department
• Sales Department
• Finance Department
• Payroll Department
• Information Technology Department
• Engineering Department
 • Administration
• Auditing Department
• Customer Care

Sales & Services Center

Ufone Sales & Service Centers have been set up to provide you quality services all under one
roof so you can walk in to any Ufone Sales & Service Center for services like:

• Connection purchase
• Bill payment
• SIM Activation
• Number blocking in case of lost or stolen SIMs
• Number change
• Address change
• SIM replacement
• Ownership Changing
• Product / package change
• Connection closure
• PIN / PUK code number inquiry
• GPRS
• IR activation
• Missed Call Notification
• Call Forwarding
• Conference Call
• FNF Activation / Changes
Brands:
While keeping its tradition of being the trend setter in the industry, Ufone changed the image of
mobile phones from a luxury only affordable by the elite, to a necessity affordable by the
common man. Since its inception, Ufone has positioned its brand for masses. In keeping with the
upcoming competition and market dynamics, Ufone increased its focus on the youth segment
(which comprises 50% of the population), with the Prepay brand. By designing market focused
products, Ufone’s brand team launched aggressive campaigns, which further increased the brand
equity. The new brand image gained huge popularity amongst the targeted market. A recent
marketing survey conducted by a prominent marketing research company showed that Ufone has
considerably increased its brand visibility and image. Ufone’s Prepay brand is now considered to
be one of the most favored brands by the youth market and is followed by other mobile operators
launching their respective brands for the youth market.

Products:
Ufone offer both prepaid and postpaid services. The following are the services of Ufone.

Prepaid:
Ufone markets its prepaid services as “Prepay”. Ufone Prepay is more
affordable. Its primary market is intended towards teen agers and students. Following are some
of the prepaid packages of Ufone.

Packages:
• Life plus Package
• Prepay Life
• Life Value
• Josh
• U Circle Life
• U Circle Life Plus
• U Rock
• Public Demand
• Paanch Ka Pandrah
 • Ghanta Package
• U Won
• 3 minutes Package
• One Number free Package
• Tension Free Package
• 60 Paisa Offer
• U-Circle
• SMS Packages
Package 1 165 25+tax
Package 2 500 50+tax
Package 3 1000 75+tax
Package 4 8000 80+tax
Package 5 unlimited 3+tax per day

Other Value Added Services:

• Ufone Game Show
• SIM Lagao Offer
• Ufone Member Banao
• IDD USA, UK & Canada
• Prepaid Roaming
• International MMS
• Products and Features
• Recharge Options
• Prepaid Call Details
• U Share
• ULoad via 1 link ATM
• Ufone Conference Call

Post paid
Postpaid services are marketed by the name “Post pay”. These services
are mainly targeted towards the business community of the country but
having the packages of middle class also. Some of the packages are given below,
 • U 50
• U 250
• U 550
• U 1000
• U 1600
• U 5000
• Post pay Unite
• Bonus SMS Package

Payments of bill
• Payments through Scratch cards
• Through UTop Up
• Cash or credit card
• Direct debit
• Using I link ATM
• Using NIB Direct Pay on NIB ATM

Bill Payment Locations

Ufone easy bill payment locations include the following:

• Ufone Sales & Customer Service Centers

• ABN Amro Bank
• Standard Chartered Bank
• Online payment via Credit Cards
• MCB ATM
• Nadra Kiosks
• UBL Network

All Post pay subscribers receive paper bills or ebills via email of on a monthly basis. Post
pay bills include the following,

• Statement Sheet
• Invoice Sheet
• Itemized Sheet
Financial Position Analysis:
Market Share:
According to the financials results of all cellular companies Ufone captured the market share
20.56% into 2008. Market share in 2009 was 21.20%. Increase in the market share of Ufone
from 2008 to 2009 was 0.64%. Above financial figures show that market share is increased
smoothly.
In highly competitive sector, market share is termed to be a strong parameter to show degree of
competitiveness in the sector. For a long time, Mobilink remained the market leader with a
significant difference, both in terms of subscribers and revenues with rest of the operators. The
PTA also declared Mobilink as an SMP operator in the mobile market. However, with new
operators settling in and addition of ZONG in the local market has changed the market
share structure, though Mobilink still holds highest share. Now subscribers have more choice,
better options and attractive facilities like MNP.
Thus, the companies are adding new subscribers, but at the same time they are also losing the
existing subscribers in favor of other operators. Figure-1 shows share comparison of each
operator in terms of total subscribers during 2007-08 and 2008-09. Mobilink lost its share by
15% this year whereas the rest of the operators show increase in their market share. Telenor has
the second highest share in the market (22.2%) in terms of subscribers followed by Ufone (21%)
and Warid (19%).
Analyzing the market share of each operator by revenue (Figure - 16), Mobilink remained the
leader, again followed by Telenor and Ufone. During the reported year, all the companies lost
their share in total revenue of the industry except Ufone and Zong as their shares appreciated
from 15% to 19% and 1% to 4% respectively.

Revenues:
Due to huge amount of sales Ufone‘s revenue in 2008 is 15% which was increased to 18.86% in
2009. The increase in revenues is almost 3.86% which was almost huge increment from than that
of its competitors.
a major share of 64% in the total revenue of telecom industry. Today, the total revenue of mobile
segment stands at Rs. 212 billion. Although there is an increase in the revenues by 16.6% this
year; but the last year, the growth was over 40%. As far as financial health of the companies is
concerned, it was noticed that only Ufone made profit of around Rs. 1.7 billion, and the rest of
the companies faced losses. Double digit inflation and taxes could be major reason besides other
factors mentioned earlier. Particularly the rising petroleum prices along with power shortage and
high advertising costs put extra burden on operator’s expenses.
Among the operators, Zong performed exceptionally well in terms of increase in revenue, where
the company's revenue grew three times of its actual revenue of the last year. Ufone exhibited
improved growth of 45% in its revenue. Warid, Telenor and Mobilink's increase in revenue
remained slow and steady during the reported period. As for Ufone's financial health, the
company seems to be in total control of its finances and it is managing its financial resources
very prudently.
Investment:
Investment in 2008 was US$ 27455 million and in the next year 2009 the investment increased
from this point to US$ 40660 million, which shows that investors are financing in Ufone and
Ufone is developing interest of investors in financing. Pakistan has been an investors' heaven
especially for telecom sector for a few years. The investor friendly environment makes the
country home to world telecom giants like Orascom, Telenor, Warid Telecom (Abu Dhabi
Group), Singtel and the latest addition of China Mobile. These companies had been investing
heavily in rolling out their networks with a pace that more than 90% of Pakistan has been
provided with telecom facility within just three years.
Although the reported year did not prove to be very exciting one for the operators, and the total
investment decreased by 48% but the operators are taking it as a temporary setback. Even in such
a discouraging situation, the companies like Zong and Ufone have increased their investment in
the reported year. Zong plans to invest US$ 500 million more or so in the coming year to roll out
the infrastructure all across the country.
We hope that investment in the sector will further increase with the introduction of 3G.
While looking at individual investments, Mobilink has substantially cut down its investment to
more than 70%, followed by Telenor and Warid reducing investments up to 33% and 65%
respectively. The major contributor to the total investment made in the mobile segment turned
out to be Telenor with a total of US$ 374 million.
SWOT ANALYSIS OF UFONE
STRENGTHS
NETWORK COVERAGE:
Ufone has a network coverage in more than 5885 locations and across all major highways of the
country.
INTERNATIONAL ROAMING
Ufone currently caters for International Roaming to more than 230 live operators in more than
130 countries. Ufone has introduced International Roaming facility for prepaid subscriber in
various countries around the globe with the lowest call rates, featuring no security charges and
activation charges.
GPRS ROAMING
GPRS roaming facility is available with more than 115 live operators across 85 countries.
LICENSE FOR AZAD JAMMU KASHMIR AND NORTHERN AREAS
The company has also been awarded a new license for providing cellular services in Azad
Jammu and Kashmir and Northern Areas.
QUALITY COVERAGE
Ufone provides its subscriber with quality coverage and clear connectivity.
VALUE ADDED SERVICES
Ufone is a host of value added services and data connectivity with the best network in Pakistan.
LOWEST PRICES
Ufone offers the most reasonable prices for its users.
REPRESENTATIVE OF PTCL
Ufone acts as a representative of PTCL as it is its subsidiary
PIONEERS OF MMS AND GPRS
Ufone was the first to launch GPRS services and Multimedia Messaging Service (MMS) and
prepaid roaming in Pakistan. The network also allows Ufone subscriber to have high speed
wireless data service.
SECOND LARGEST MARKET SHARE
Ufone is the second largest cellular operator in Pakistan with subscriber base of around 6.5
million and a market share of nearly 25%. Ufone’s Prepay brand is now considered to be one of
the most favorite brands by the youth market.
WEAKNESS
BEHIND ON EXCESSIVE DEMAND
This is Ufone’s biggest weakness; company is unable to meet the demands
POOR ORGANIZATIONAL STRUCTURE
Centralized structure failed to provide proper guidance over instruction and policies.
STAGNANT PROFITABILITY
As compared to financial assets, Ufone is not close to expected profitability.
OVERLY DEPENDENT ON PTCL
Since, it is a subsidiary of PTCL IT is dependent on PTCL.
LACK OF FRNACHISE
It has many franchises in the whole country but as its customers are increasing day by day so its
present franchises are not enough to fulfill the needs of it customers.
LACK OF INNOVATIVE SERVICES
Ufone though has some unique and distinct services but it has not yet given many innovative
services as compared to other cellular companies.
NETWORK COVERAGE
Its coverage on Southern part of Pakistan is quite good but in northern areas its coverage is a bit
poor.
COMPETETION
When Ufone came into the seen in Pakistan cellular market Mobilink was already prevailing in
the market and it was all Mobilink monopoly that time. Though with the passage of time Ufone
took many customers of Mobilink but still Mobilink has large number of users because it was
first to Pakistan’s cellular market and this is the competitive disadvantage to Ufone.
INTERNAL PROBLEMS
Ufone is plagued with some internal problems like when it is privatized to Etisalaat being the
part of the PTCL many employees were not happy with the pay scale that they were offering.

OPPURTUNITYCONTINUING TO EXPAND GLOBALLY

Ufone has the ability to expand globally. But due to current economic condition all its operation
on halt.
PUBLICITY AND MARKETING
With the right marketing strategy they can acquire much more.
DEVELOP NEW VALUE ADDED SERVICE
This is an opportunity that will never be satisfied, meaning that Ufone should always be
attempting to keep improving new value added services and as we know what is in today will be
out tomorrow.
INTRODUCE KIOSK TECHNOLOGY
Ufone can surprise its competitors by introducing “Ufone kiosk”. These will be ATM like
machines and that will give 24-hour service to Ufone subscribers to load the balance just like
they take money from ATM.
DEVELOP FRANCHISE IN REMOTE AREAS
Ufone should develop some new franchises in remote areas so that people will get more and
more benefit from it and it will help to increase their customers. Ufone should extend its network
coverage area to Northern part of the country as well because in that part not too many
companies are giving services and if Ufone give its service there then it will definitely attract
people and its number of customers will shoot like a rocket.
THREAT
GOVERNMENT INTERFERENCE
Government interference in terms of taxes will always be treated as a threat.
PTCL CELLULAR LICENSE
Ufone is nothing just a cellular license to PTCL, PTCL should provide more financial support to
enhance profitability of its subsidiary company.
PENSION PAYOUTS
Part of this threat is their own doing and other is simply unavoidable. Ufone is responsible for
providing generous pension benefits to its employees, which at time seems like a great
idea, however they are now experiencing problems as more and more people begin to collect.
INCREASED HEALTH CARE COSTS
Ufone, like many large companies with quality employees’ health care benefits, is experiencing a
large financial hit that only get worse as time continues as compare to other cellular firms
TOUGH COMPETETION
As Ufone is cellular company and there is cut throat competition among cellular companies in
Pakistan. There are six other companies also working in Pakistan so Ufone would have to
face some growing competitive pressures.
PRESSURE GROUP
Some pressure groups are protesting on the towers that are installed in residential areas. Their
opinion is that it is not good for health of people to have such towers near their homes that
cause radiations.
ECONOMIC PROBLEMS
Pakistan is facing some serious economic problems now days so that would also affect Ufone.
The current recession in market is not good for any kind of business including
telecommunication.
MARKETING STRATEGIES

MARKET SEGMENTATION

Prepaid
Cellular service market is a diverse set of people. Ufone as well as other cellular service
companies segment their market on four bases: - economy, age, gender & occupation.

1. ECONOMY: Upper class, Middle class, socio-economic class, lower class

2. AGE: Teenagers, youngsters, middle age, aged people
3. GENDER: Male & Female
4. OCCUPATION: corporate class, Business class, working class etc

Postpaid
Cellular service market is a diverse set of people. Ufone as well as other cellular service
companies segment their market on four bases: - economy & occupation.

• ECONOMY : Upper class, Middle class,

• OCCUPATION : corporate class, Business class,

TARGET MARKETS

Prepaid
Cellular phones are the technology of new era, the 21st century. These cellular phones are the
main focus of our youngsters. All the cellular companies are targeting The Youth one way or
other. Ufone is no longer a follower in this race. Its main focus is “THE YOUTH” of Pakistan
which is its Target Market.

Target marketing strategy

Ufone has always been targeting Youth Market by using young brand endorsers or ambassadors.
It always brings such packages and offers that precisely meet the needs of our young people. No
doubt it has also launched packages, brands and offers for working people, business class, ladies
and aged ones. Ufone seeks to target masses in the long run.

Postpaid
Cellular companies providing postpaid service target government bodies, corporate class,
business class which are earning premiums from the market. Leading persons in the companies
and government are the most attractive customers of the postpaid service.

Target marketing strategy

Ufone is targeting corporate class by providing most suitable packages which facilitate corporate
class affectively. Ambassadors for the postpaid are chosen very carefully which correctly target
the corporate class. They provide packages, offers and brands which meet corporate class’s day
to day business needs.

POSITIONING

Prepaid
Positioning is the process of creating an image of company’s brand in the mind of market.
Companies position themselves emotionally, functionally or on the basis of brand quality. Ufone
is still a market challenger in comparison to market leader MOBILINK. It is still to reach to the
top most position of cellular companies. So Ufone positions itself on the basis of its services.
Ufone’s former Positioning Statement:
“Everybody Loves to Ufone Prepay”
Ufone’s new Positioning Statement:
“Ufone tum hi toh ho!”
Or
“It’s All About U”
Ufone’s positioning strategy:
Ufone changed the image of mobile phones from a luxury only affordable by the elite, to a
necessity affordable by the common man. Since its inception, Ufone has positioned its brand for
“MASSES” on the basis of services it is providing and its lowest call rates. It makes them
believe that it satisfies the needs of everyone (viz all classes, age & genders). It tells them that
Ufone is there when anybody needs it. The brand name UFONE itself is a positioning statement.

Postpaid
Although Mobilink has the most of the market share of the postpaid but Ufone is positioning the
market on the basis of service.
Ufone’s Postpaid slogan is
“Endless Possibilities”
Ufone’s positioning strategy:
Ufone firstly positioned postpaid as the use for corporate class only but Mobilink already
captured the most of corporate class, then Ufone repositioned its postpaid by providing package
to each business class such as U50, U250 etc.

DIFFERENTIATION

Prepaid
In these days of intense competition marketers find it hard to differentiate their services from
those of competitors. Now customer care about only price. An unsatisfied customer will
immediately go for brand switching. Thus leaving a customer unsatisfied and not meeting his/her
demands is out of question for marketers.
Differentiation Strategy:
Ufone has always strategized in satisfying the demands of its customers. In doing so it has been
successful in differentiating itself in terms of:-
• Price
• Quality service
• Technology
Postpaid
As Mobilink is already capturing most of the Postpaid market because of its first mover
advantage That was the reason Ufone differentiated its postpaid by not compromising on quality.
Corporate persons have concern with quality of service provided to them.
Differentiation Strategy :
Ufone satisfies its customers by providing best of the postpaid service. In postpaid Ufone
differentiate itself on the basis of;

• Quality
• Price
• Technology

CUSTOMER RELATIONSHIP

Prepaid
With 28 million mobile users in Pakistan, Ufone is having a subscriber base of around 7 million.
Ufone is showing a remarkable growth rate. It is maintaining a healthy customer relationship
through its “customer service centers” and “call centers”. Its department of “Customer
Operations” is specially designed for maintaining Customer Relationships.

Customer Relationship Strategy:

Ufone strategize to build and maintain strong customer relationships in order to build long-term
customer loyalty and to capture customer lifetime value. In this context Ufone has been training
its internees and permanent employees in the fine art of interacting with customers. It is also
strategizing to offer gifts & rewards for its long-term customers in its Post Pay to match the
wonderful customer relationship strategy of INDIGO.

Postpaid
Ufone postpaid is on the second position in postpaid market and having a large anount of
customers which trust on the Ufone postpaid. It is maintaining a healthy customer relationship
through its “customer service centers” and “call centers”. Its department of “Customer
Operations” is specially designed for maintaining Customer Relationships.
Customer Relationship Strategy:
In Postpaid Customer Relationship Strategy, postpaid customers are preferred on the others.
They get preference in every service just as when they call on Ufone helpline their call is given
response frequently and treated very well.

TOTAL MARKET ORIENTATION

Prepaid
Total Market Orientation is about understanding and meeting customer’s expressed and latent
needs.
Strategy: Ufone has always considered the ever growing needs of low call rates and
quality service. It has provided its customers their needed packages and has introduced such
brands & packages that meet customer’s latent needs as well. For example 5 ka 15 is result of a
latent need of women of our society. They plan to make a short call but it becomes a long one
unintentionally due to gossips and chit chats.

Postpaid
Total Market Orientation is about understanding and meeting customer’s expressed and latent
needs.
Strategy: Ufone classifies its postpaid customers in different classes and provides suitable
packages which facilitate each class. For example Ufone introduced U50, U250 to a separate
class and U1600 and U5000 for different class.

Competitive strategy:

Prepaid
There is a hard core competition among the cellular service providers in Pakistan. Ufone is a
market challenger in its competitive position, where MOBILINK is the market leader. Warid,
Telenor and newly introduced ZONG are also strong contenders in market challenger category.
Ufone has the following four direct competitors:-
Ufone also considers the following as its competitors:-
• ZONG (former PAKTEL)
• Mobilink
 • Telenor
• Warid
Strategy: Ufone’s competitive strategies are Customer intimacy and Differentiation.
Ufone aims at fore passing Mobilink in its competitive race.
Postpaid
In postpaid Ufone faces four competitors which are
• Indigo
• Telenor Persona
• Zahi
• Zong Postpaid
Mobilink is the major competitor of Ufone which captured most of the postpaid market
Strategy: Ufone postpaid competitive strategies concentrate on price and quality bases. Ufone
gives different offers and packages to its customers which its competitors don’t.

MARKETING MIX
SERVICES
Prepaid
Ufone is a service providing company. Service is any intangible product that consists of
activities, benefits or satisfactions offered for sale.
Strategies:
Positioning
Product-repositioning strategies
I. Among existing customers
II. Among new users
Product Scope Strategy
I. Multiple Product Strategy
Product Design Strategy
I. Standard Product
II. Standard Product with modifications
Ufone makes strategies to provide a better cellular telephonic service which excels its
competitors at all levels. When Ufone launches a new package in a market, it actually makes it a
complete package of core benefit, design, features, brand name, quality, and after sale service.

Postpaid
Ufone Post pay is a brand that keeps up with you, understanding your drive for victory in the
business arena and your sense of belonging in your personal life. On the road to success, Ufone
Post pay is a brand for those who expect more from life, from themselves and from their phones,
so turn your mobile communication into the unique experience you always wanted.
Strategies:
Positioning
Product Design Strategy
I. Standard Product
II. Customizd Product
Ufone’s core competency is that they always charge almost lowest rates of their service and
gives quality, modern technology and different offers at one place. Ufone uses penetration
strategy, penetration means it charge lower rates than that of competitors. For example in
postpaid they give different packages to different classes and differentiate its service by
providing marvelous offers.

PRICE
Prepaid
Cellular service providers are facing intense price competition in contemporary market.
Customers perceive pricing as the heart of brand selection. Price has always seen the core
differentiation of Ufone. Ufone is the one who is offering least call rates off-network.
Strategy
Penetration
Ufone strategize to capture the existing pricing needs of its customers and use it well on
occasional or timely basis. For example Ufone offered very good call rates on international calls
in Eid days. It offered hourly call rates in Ramadan when people were least likely to avail the
offer that much that it might prove unprofitable for Ufone. It was a fantastic strategy to beautify
the brand image in term of pricing in customer’s minds as well as remain profitable in doing so.
Ufone follows market penetration pricing strategy and dynamic pricing strategy to meet the
customer needs and ever changing price competition.
Postpaid
Customers perceive pricing as the heart of brand selection. Price has always been the core
differentiation of Ufone. Ufone is the one who is offering least call rates off-network.
Strategy
Penetration
Ufone’s price strategy in postpaid is very affective and suitable according to market needs and
priorities. Ufone always gives its customers almost lowest rates prevailing in market. They give
packages to each class and facilitate with most suitable packages
PLACE
Prepaid
Place plays a very important part in the distribution and promotion of services. Competitors of
Ufone are seeking to penetrate into places where others haven’t reached. Cellular service
providers are drastically widening their network & coverage in every area of Pakistan. Mobilink
has this edge in place excellence because it is the pioneer in cellular telephonic field.

Strategy:
Intensive
Ufone strategize to widen its coverage to all places in Pakistan in order to meet the requirements
of its increasing customer base. Now Ufone is heading from cities to remote northern areas in
expanding its network. Ufone has intensive promotion in cities, but it is also considering
improving its promotion in rural areas as well.
Postpaid
Place plays a very important part in the distribution and promotion of services. Competitors of
Ufone are seeking to penetrate into places where others haven’t reached. Cellular service
providers are drastically widening their network & coverage in every area of Pakistan. Mobilink
has this edge in place excellence because it is the pioneer in cellular telephonic field.
Strategy:
Intensive
Place plays a very important part in the distribution and promotion of services. Competitors of
Ufone are seeking to penetrate into places where others aven’t reached. Cellular service
providers are drastically widening their network & coverage in every area of Pakistan. Mobilink
has this edge in place excellence because it is the pioneer in cellular telephonic field.
PROMOTION
Prepaid
Ufone believes in Integrated Marketing Communication which is a carefully blended mix of
promotion tools. Ufone employ different marketing activities and channels to communicate and
deliver value to customer. These activities are coordinated to provide maximum communication
output. These communication channels includes:-
Advertising, sales promotion, public relations, direct marketing & personal selling. Ufone
strategize to carry out promotion in order to increase its market share.
Strategy:
• Advertising
• Sales Promotion
• Public Relations: Ufone is less conscious of developing its general public relations. But
recently it has launched its “Hajj Guide” service on Ufone. It avoids getting in news
stories and controversies but sometimes it proves inevitable.
• Direct Marketing: Ufone employ on-road umbrella franchises where the directly market
and sell their connections and Sims.
• Personal Selling: Ufone administer personal selling facility to sell their Post Pay
connections targeting well to do people and businessmen.
Postpaid
Ufone is currently not advertising its postpaid service through television, newspaper and other
advertising source but one can get awareness of postpaid by Ufone pamphlets, broachers and
posters
Strategy
Sales Promotion
Public Relations: Ufone is less conscious of developing its general public relations. But recently
it has launched its “Hajj Guide” service on Ufone. It avoids getting in news stories and
controversies but sometimes it proves inevitable.

ADVERTISING & DEVELOPING AD COMPAIGNS

“Any paid form of non personal presentation and promotion of ideas, goods, or services by an
identified sponsor”

ADVERTISING OBJECTIVES:
Ufone use advertisements when:
• It has to inform the customers about new or available services
• It seeks to persuade people to purchase their service or switch to their connection from
any other connection

ADVERTISING BUDGET
Ufone is a heavy spender on advertising in electronic media as well as other media. Recently
Ufone invested a huge amount on mass advertising. It was definitely a risk to take such decision.
They are developing and playing new advertisements on electronic media not even with a
month’s gap or so. A single Ufone advertisement played 15-20 times per day on a TV channel
costs millions varying with the time of day when it is played. Ufone spends 20% of its profit on
advertising and sales promotion.

ADVERTISING STRATEGIES
Advertising strategy consists of two major elements: Advertising Message & Advertising Media.
Ufone has the following strategies regarding the Message and Media of advertising,

ADVERTISING MESSAGE:
Message Content --»The very first content of Ufone’s advertising message was humor, and then
in its blooming stage it shifted its message content to youthful excitement. Recently Ufone has
again adopted humorous theme for its message content. This time Ufone is winning the hearts of
people through humor and it has increased RPI of Ufone. Ufone has already generated much
revenue through it.
 Message Format --»The format of Ufone’s advertisements has always been very colorful
and eye catching. The shocking Orange & Green colors used by Ufone have always
attracted people. These colors look beautiful on wall printing of Ufone.
 Message Source --»The very first Ufone advertisements had Faisal Qureshi as its
message source. Afterwards Ufone hired non-celebrity young models for its youthful
message theme. Ufone also hired three lollywood queens i.e. Meera, Jia Ali and Veena
Malik with Mikaal in an advertisement of “Baat Ban Jaye”. This advertisement created a
big controversy regarding the erotic and sexually attracting acts by the three female
models. Due to negative response by people Ufone had to vacate its billboards and
eradicate its banners, posters etc overnight, as directed by CEO and CMO of Ufone. But
now Ufone has again hired a comedian trio featuring Faisal Qureshi, Mikaal & Hammad.
The strategy behind hiring this trio is that they are economical and are personal favorites
of people. Ufone always hire endorsers in group · Mr.Waqas Anjum (Senior Marketing
Executive-Multan) is of view that you must bring changes in marketing to attract
customers. For this purpose Ufone is re-launching itself under the name of one single
brand called “UFONE”. This brand would have Orange & Black as its corporate color
instead of conventional Orange & Green color.
 ADVERTISING MEDIA >> To increase the reach and frequency of advertisement
Ufone is using repetitive strategy for its advertisements. And the humorous theme always
makes the ads more appealing and engaging the minds of customers. Ufone advertise in
the following media types:-
 Print Media --»Ufone tries and print ads in all leading newspapers including The Dawn,
Jung, Nawa-i-Waqt, Khabrain and local Sindhi newspapers as well. Ufone place its ads in
all leading magazines as well i.e. Sunday magazine, akhabr-e-jahan, Libas, Mag etc.
 Broadcast Media --» It is the prior choice for Ufone. It includes the electronic media
television and radio. Ufone is advertising in all Pakistani channels including GEO, Hum,
ARY, Indus, TV one, HBO, Cartoon Network etc (except MTV Pakistan).
 Display Media --»This type of media is the second choice of Ufone where it carries out
its most of sales promotion and advertising. Ufone advertise using billboards, hoardings,
signs (on Shop boards etc), posters, wall paintings etc. SME Multan has used a new and
 innovative vehicle in display media i.e. Ufone’s painted rickshaws Online Media --»
Internet is the online media. Ufone places flashing ads on famous portals like
coolbuddy.com, pakfellows.com etc. But Ufone is not carrying out direct mail or direct e-
mail advertising Events --» Ufone has sponsored many events in the past and holds future
plans concerning it. The famous event sponsored by Ufone in 2006 was a series of
musical concerts did all over Pakistan, featuring Mikaal Hassan and Junoon, it named
UROCK AD SHOOTS: The ads of Ufone are shot mostly within Pakistan. But the
PostPay ads are shot in foreign locations. Recently Ufone shot in the picturesque
locations of northern areas of Pakistan in its advertisement of UWON “sabse sasti call”.

PERSONAL SELLING
Personal selling is oral communication with potential buyers of a product with the intention of
making a sale. The personal selling may focus initially on developing a relationship with the
potential buyer, but will always ultimately end with an attempt to "close the sale"

Personal selling is one of the oldest forms of promotion. It involves the use of a sales force to
support a push strategy (encouraging intermediaries to buy the product) or a pull
strategy (where the role of the sales force may be limited to supporting retailers and providing
after-sales service).

Ufone sale representative make the selling selling by providing services to the customer at their
doorstep, i.e. informing about the new packages, serving customers and of course sell their
product and attract the new customers.
New business plan

Ufone Postpay
Ufone Post pay is a brand that keeps up with you, understanding your drive for victory
in the business arena and your sense of belonging in your personal life now with new
mind blowing features with a large range of offers which boost up your daily life
routine and give you a fresh feeling in using cellular services. On the road to success,
Ufone Post pay is a brand for those who expect more from life, from themselves and
from their phones, so turn your mobile communication into the unique experience you
always wanted.

We aim at providing you with the most superior mobile phone services, widest quality
network & best customer services for you on your journey to success.

Ufone Post pay is designed to suit your life style & communication drive. As you
always wanted more from your mobile phone service! So now you can enjoy:

 Customized packages: on a range of talk plans you can choose from Ufone
according to your needs, No compulsion on choosing a specific package

 U Youth Packages: gives young generation a new postpaid plan, you never
tried before

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

 Lowest price: never think about over charged you earn what you get from
Ufone Post pay

 GPRS: Internet Access on your GPRS enabled phone & mobile office so you
can be in touch with business while you are out and about

 Unlimited Browsing: Enjoy a sharp speed internet service

 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.

Market strategies
Segmentation:
Ufone can Segment postpaid market according to need of the market. Normally
postpaid service companies segment market on the base of Occupation but Ufone can
Segment postpaid market on the basis of

Economy: (Upper class, Middle class, Socio economic class and lower class)

Occupation: (Corporate, Business and Working Class)

Age: (Teenagers, Youngsters, Middle age and Old aged)

Ufone can segment market in these three dimensions and their categories to satisfy
some specific segments properly.

Targeting:
After dividing market in three dimensions and their different categories Ufone can
plan to enter in these segments of market which are;

Corporate Class

Business Class

Youth (University & college students)

Ufone would be able to meet the needs of these target markets most properly and can
create a good customer relationship with customers of these markets by providing
them superior quality service, unlimited range of Packages and offers at very
affordable rate.

Positioning:
Ufone can reposition its postpaid service by attracting the youngsters and middle class
segment of market as they existing given packages which are U50, U250, U499 and
U550. As corporate class requires some special offers and they need some special
attraction, Ufone can facilitate them by giving them customize service known as U
Executive. In U Executive corporate persons can customize packages on their own
desires and feel freedom from compulsion of unnecessary offers.
Differentiation:
Ufone is differentiating its service from competitors by giving customized services to
its corporate customers and by attracting youngsters toward postpaid service.

Marketing Mix
Product/Service:
Ufone post pay can give the customized package means the corporate or executive
class can customize their package according to their requirement.

For example if a businessman can feel that he require the 800 minutes on Ufone,500
on Mobilink, 300 on Telenor, 400 on Warid, 100 on zone and 450 on Ptcl in only
single package, then he can easily get this package by customizing their package. It is
more attractive because if the person made its package according to its own
requirement then he feels comfortable.

Product repositioning

• Among existing users

• Among new users

Product Scope Strategy

• Multiple Brands

Product Design

• Standard Services

• Customized Services

Product Overlap Strategy

• Competing Brands

Price:
price is always important factor to attract the customer in Pakistan because almost
people are price conscious than that of quality conscious so price is the most important
factor but as we are targeting in this package the executive, business class those who
are not concern with the price but concern with the quality and comforts so for the
customized product we charge high from these customers and get benefited.
So in the pricing strategy Ufone can use the following strategies,

• Price skimming strategy (for corporate class)

• Price penetration strategy ( for youngsters)

Place:
Place plays a very important part in the distribution and promotion of services.
Competitors of Ufone are seeking to penetrate into places where others haven’t
reached. Cellular service providers are drastically widening their network & coverage
in every area of Pakistan. Mobilink has this edge in place excellence because it is the
pioneer in cellular telephonic field.
For this purpose ufone can use the following strategy
• Intensive distribution
Promotion:

Promotion is the fourth important P’s of marketing strategies, as ufone is not currently
giving any type of promotion of their due to which he can’t achieve the desire
business class contacts. So promotion is the best way to attract and aware the
customers.
For this purpose ufone can use the following strategies as given below

• Advertising
• Sales Promotion
• Public Relations:
• Direct Marketing: Ufone employ on-road umbrella franchises where the
directly market and sell their connections and Sims.
• Personal Selling: Ufone administer personal selling facility to sell their Post
Pay connections targeting well to do people and businessmen.

PERSONAL SELLING
Personal selling is oral communication with potential buyers of a product with the
intention of making a sale. The personal selling may focus initially on developing a
relationship with the potential buyer, but will always ultimately end with an attempt to
"close the sale"
Personal selling is one of the oldest forms of promotion. It involves the use of a sales
force to support a push strategy (encouraging intermediaries to buy the product) or
a pull strategy (where the role of the sales force may be limited to supporting retailers
and providing after-sales service).

Ufone sale representative make the selling by providing services to the customer at
their doorstep, i.e. informing about the new packages, serving customers and of course
sell their product and attract the new customers.

In this strategy employees can move to the universities to attract the youngsters.

They can contact the business person to contact with them to pursue against their
product, so that they can make their mind to purchase it.
 Conclusion

Telecom industry is most growing industry of Pakistan still huge

investment required for coverage. The market also has strong competition
after the entrance of China Mobile Company as player. Competitors are
hiring professionals to entertain the consumer which is resulting
technological implementation and value added services. People are
worried about call rates they don’t prefer any particular company.
Consumer searches good service with lowest call rates, although
companies are minimizing call rates this will result more growth in
the market. Ufone bring amazing packages to attract the customers. Ufone
promote their product through TV commercial, Newspaper, Radio, Internet
etc. The choice of people is Ufone because Ufone price level is low and
affordable that every one can say “it’s all about U”
Suggestions and Recommendations:

• The billing and system of Ufone should be made more accurate with
the acquisition of new and improved equipment and machinery.
• The system of coverage would be made more powerful with the advanced
in technology, technology play a vital role in services.
• In the SMS bundle offer people have some objection that its validity should be
more.
• Coverage should be made more accurate throughout the Pakistan
like Mobilink.
• In order to make a competitive edge, they have made sure that all
employees show their brand. (According to an author, every one of you will
make or break the promise that our brand is for customers).
• Advertising should be made more attractive with stars.
• The exterior outlook and layout of franchises needs to be improved likewise of
the interior.
• Managers should be aware of the perceptions that are changing according
to time.
• They have to go for sponsorship of leisure activities like in cricket,
hockey, volleyball etc
• They have to develop the plans like to go for areas in which they have not
yet construct any booster.
• They have to give happy hours in any time of the day.
• They have to create an image of Ufone like .connecting people.
References:
• www.ufone.com.pk
• www.scribd.com
• www.pta.gov.pk
• http://www.ntcpk.com/ufone.htm
• http://market.huawei.com/hwgg/ctia2007/download/Ufone%20Quickly%20Deploys
%20a%20GSM%20Network%20Covering%201500-Cities%20in%20Pakistan
%20.pdf
• http://ufone.wordpress.com/2007/05/21/3/
• http://www.blogster.com/zealot/management-assi-ufone
• Marketing planning strategy by Subhash C Jain
• http://www.apakistannews.com/victoria-secret-models-149783
• Ufone Franchise