BRIEF HISTORY OF UFONE PTML is a subsidiary of PTCL (Pakistan Telecom Company Limited), the largest operator in Pakistan.

PTML was established to operate cellular telephony. The company commenced its operations, under the brand name of Ufone from Islamabad on January 29 2001.Since Etisalat took over PTCL in 2006, during the year as a consequence of PTCLs privatization, 26% of its shares were acquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been handed over to Etisalat. In September 2006, Ufone selected Huawei to deploy the nationwide GSM network at a contract value of above USD550 million. Ufone adopted Huawei's new-generation GSM solution, including All-IP core network and BTS, to construct a GSM network covering 1,500 cities and towns of Pakistan.

MISSION OF UFONE

Our mission is to provide best services with best coverage that would eventually generate profit for the company and its stakeholders

UFONEs ACHIEVEMENTS During 2006 Ufone successfully completed the network expansion of Phase 4 in existing as well as in new cities and towns which amounted to more than US Dollar 170 million. As a result the asset base of the Company has increased from Rs. 20 billion to Rs. 27 billion. Ufone adopted the policy of simplified tariffs with no hidden charges, which resulted in positive impacts on total subscriber base, which has increased from 2,579k in June 2005 to 7,487k in June 2006.

Ufone currently caters for international roaming to more than 195 live operators across 119 countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal and Kuwait with lowest rates, featuring no security deposit and activation charges. GPRS roaming facility is available with more than 75 Live Operators across 59 countries. The Company has also been awarded a new License for providing cellular services in Azad Jammu & Kashmir and the Northern Areas. OPERATING PERFORMANCE Ufones operational performance has been very encouraging. Despite the stiff competition in Pakistan telecom market which has led to reduction of prices to bare minimum level, due to its aggressive policies and exercising strict control over expenses the Company managed to improve its revenue and after-tax profit by 87% and 54% respectively, as compared to last year. GROWTH RATE As mobile users in the country have reached over 28 million at a very rapid pace, Ufone has maintained itself as the 2nd largest cellular operator in Pakistan with a subscriber base of around 6.5 million and a market share of nearly 25%. Ufone has seen a subscriber growth rate of over 200% in the last year, and since the start of 2005 Ufone added nearly 5 million subscribers onto its network. A remarkable achievement indeed, especially considering the fact that two new international players also entered into the market in 2005. Subsequently the growth in subscriber base caused a healthy trend in revenues which have doubled.

PROMOTION
Ufone believes in Integrated Marketing Communication which is a carefully blended mix of promotion tools. Ufone employ different marketing activities and channels to communicate and deliver value to customer. These activities are coordinated to provide maximum communication output. These communication channels includes:Advertising, sales promotion, public relations, direct marketing & personal selling. Ufone strategize to carry out promotion in order to increase its market share. Strategy : Advertising (discussed later) Sales Promotion (discussed later) 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 PostPay connections targeting well to do people and businessmen

It wont be an exaggeration to say that Ufone has placed itself where it is now through brilliant
promotions.

SALES PROMOTION
Sales promotions are short term incentives to encourage the purchase or sale of a product or service Ufone utilizes sales promotion activities to boost its sales. It follows all four of the promotion budgeting methods viz affordable method, percentage of sales method, competitive parity method and objective & task method. Ufone uses following sales promotion tools Contests: Ufone carried out contest for cricket talent hunt in the year 200_______. Our renowned Pakistani cricketer Shoaib Akhtar was used as patron for this contest. However this contest didnt do much good to Ufones image or sales. But Ufone holds future plans to carry out such activities in more effective and profitable ways. Games: Ufone is currently running its game show on ATV prime time. This game show rewards the winning participants. Ufone updates its customers every now and then to participate in this game show. The problem we see in this activity is that Ufone is not properly advertising it. Premiums: All the cellular services are now offering premiums for their customers. This premium is offered, when a customer dont use his/her sim for more than 3-6 months, in the form of extra credit balance delivered to their numbers for free Free tickets:

Ufone recently offered free trip to Dubai. It was Ufones first Eid offer. Every time you make any international call of 5 minutes or longer than 5 minutes, you enter the lucky draw to win a return ticket to Dubai. The more calls you make, more is your chance to win.

Promotional Products: Phone bhi Ufone bhi. It was a promotional offer By Ufone where it offered a mobile phone, free air time, Ufone connection and Rs.100 airtime all for Rs.999.And now Ufone also offers Blackberry mobile sets with PostPay connection. Another recent promotional offer by Ufone is that with your HBL Credit Card; get a free handset of your choice, a Ufone PostPay connection and airtime. Existing as well as new HBL Credit Card customers may avail this offer.

SALES PROMOTION STRATEGY: Ufone strategize to take aid of sales promotion whenever it sees a minor drop in its usage by its customers. They mostly go for pull strategy in promotion i.e. they spend a lot on advertising and consumer promotion to induce final customers to avail their services. Ufone applies sales promotion schemes continually in order to keep its customers loyal and happy.

COMPETITIVE ADVANTAGES
Its an advantage over competitors gained by offering consumers greater value than competitors offer. Ufone strategizes to gain more and more competitive advantages. It also uses these competitive advantages well enough for its promotion. Currently Ufone is enjoying the following competitive advantages:Lowest overall call rates Value added Services (VAS) Call block service Corporate color

CHALLENGES
Ufone face many challenges with the ever growing needs of telecommunication. It must remain profitable with the decreasing economical situation of Pakistan. It must grow as well in these dark times if it has to remain IN the market. Ufone face very strong competition from its competitors. It must offer lowest rates with better quality service. New features and services should be introduced to make its customers loyal, happy and satisfied.

FUTURE PLANS
Keeping in view the growth potential of the cellular industry there is no option but to be aggressive in order to remain a potent force in the cellular industry. In order to extend cellular network Ufone has finalized a huge network expansion contract amounting to about USD 550 million, which will enhance the subscribers capacity by 10 million. This is the largest ever expansion project of Ufone. A strong focus will be on maintaining high quality of service, which is always a benchmark of Ufone, increasing usage and exploring new revenue streams on value added services, market visibility through various market initiatives to fulfill subscribers satisfaction and demand and above all to increase the value of investment for the shareholders.

CONCLUSION
By keenly analyzing the marketing of Ufone, we group member agree that Ufone is not a safe player in the market. It is penetrating its market by taking risks and aggressively promoting & advertising itself. It holds second largest market share and is seeking to become the market leader anyway possible. We came through very unconventional strategies and ad campaigns while working on this report. We believe that mobile services are the toughest market to enter and survive. And in this tough market Ufone isnt only surviving but growing at an exceptional rate. Ufone is using humorous theme in its ads which has become its benchmark. People enjoy watching, discussing and following Ufone ads the most. And it is the biggest achievement of Ufone in recent times. We wish a very best of luck to Ufone. May it progress in this field and achieve its desired goals. (AMEEN)

Brief Introduction of Company: The revolutionary entrance of Ufone to the cellular industry in 2001 changed the over all scenario of the market of mobile industry in Pakistan. PTML, a 100% owned subsidiary of PTCL was established to operate cellular GSM 900 services. 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. Ufone now covers all key locations and prominent highways across Pakistan providing to the customers best quality service. Ufone believes in solid commitment to growth, security & reliability. Currently, with a market share of over 22%, and an aggressive commercial plan, the customer base has more than tripled from the last fiscal year to over 9.41 million subscribers. Ufone entered in the industry with the concept that everybody should have a mobile phone and for this they primarily targeted the middle-income group. But now they are also targeting the corporate sector by offering some special post paid packages. Ufone has taken the latest technology from the Canadian company NORTEL and SIEMENS. Ufone provides both pre-paid and post paid voice communication and international roaming services. The company provides coverage across Pakistan and over 125 countries. Companys To become the the lowest possible price best Mission cellular service Statement: available at

Present sales strategy: Corporate sales department: KAMs (key account managers) are involved in corporate sales. (Total number of KAMs 46 all over Pakistan) They make sales to corporate sectors and their main area is post pay. Generate new accounts, manage old ones and strong follow up. Corporate strategy: Ufone use aggressive and creative strategies attracting people to feel the difference between ufone and other cellular services. There are four main corporate objectives: 1. Price leader through low cost structure. 2. Creation and realization of share holder value. 3. Strong future growth 4. Multiple pricing Corporate sales department changes its strategy from time to time. It coordinates with corporate services department for resolution of relevant issues. They are getting sales through MNP mobile number portability. Making market analysis and developing comparison with competitors. Conducting statistical surveys to know customer satisfaction. Corporate presentation regarding new products and promos.

 Customer education with reference to VAS (value added services). Promotional plans for upcoming products and services. (Source: Amir Ghani corporate service manager (ufone))

New sales plan: Pakistan Telecom industry is an example of an oligoplistic market situation. Where all the competitors are engaged into price war. Call rates of all the companies have gone down considerably. In this situation where all the companies offering similar services price and quality is only discriminating factor. Call rates of all the existing players are given below. Since the products that each company is offering is different in some way can not be compared. However a snap shot comparison of the only the basic (initial) package is presented.

Sales Promotion
What is sales promotion?
Sales promotion is any initiative undertaken by an organisation to promote an increase in sales, usage or trial of a product or service (i.e. initiatives that are not covered by the other elements of the marketing communications or promotions mix). Sales promotions are varied.

Sales Promotion
Sales promotion is one level or type of marketing aimed either at the consumer or at the distribution channel (in the form of sales-incentives). It is used to introduce new product, clear out inventories, attract traffic, and to lift sales temporarily. Sales promotion is one level or type of marketing aimed either at the consumer or at the distribution channel (in the form of sales-incentives). It is used to introduce new product, clear out inventories, attract traffic, and to lift sales temporarily. It is more closely associated with the marketing of products than of services. The American Marketing Association (AMA), in its Web-based "Dictionary of Marketing Terms," defines sales promotion as "media and nonmedia marketing pressure applied for a predetermined, limited period of time in order to stimulate trial, increase consumer demand, or improve product availability." Business pundits and academic

students of business have developed almost fancifully sophisticated views of sales promotion. In down-to-earth terms it is a way of lifting sales temporarily by appealing to economic motives and impulse-buying behavior. The chief tools of sales promotion are discounts ("sales"), distribution of samples and coupons, the holding of sweepstakes and contests, special store displays, and offering premiums and rebates. All of these techniques require some kind of communication. Thus sales promotion and advertising are difficult to distinguish. The need for promotion arises from the intensity of competition. Sellers must somehow attract customers' attention. In the open markets of old (and farmers markets of today), sellers did and do this by shouting, joking with customers, and sometimes by holding up a squealing piglet for everyone to see. Priya Raghubir and his coauthors, writing in California Management Review, identify "three faces" of consumer promotions: these are information, economic incentive, and emotional appeal. Information may take the form of advertising the availability of something, incentives are offered in the form of discounts, and emotional appeals are made by displays and, of course, by the low price itself. Often they are original and creative, and hence a comprehensive list of all available techniques is virtually impossible (since original sales promotions are launched daily!). Here are some examples of popular sales promotions activities: (a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-liquidating promotion. For example if a loaf of bread is priced at $1, and cost 10 cents to manufacture, if you sell two for $1, you are still in profit - especially if there is a corresponding increase in sales. This is known as a PREMIUM sales promotion tactic. (b) Customer Relationship Management (CRM) incentives such as bonus points or money off coupons. There are many examples of CRM, from banks to supermarkets. (c) New media - Websites and mobile phones that support a sales promotion. For example, in the United Kingdom, Nestle printed individual codes on KIT-KAT packaging, whereby a consumer would enter the code into a dynamic website to see if they had won a prize. Consumers could also text codes via their mobile phones to the same effect. (d) Merchandising additions such as dump bins, point-of-sale materials and product demonstrations. (e) Free gifts e.g. Subway gave away a card with six spaces for stickers with each sandwich purchase. Once the card was full the consumer was given a free sandwich. (f) Discounted prices e.g. Budget airline such as EasyJet and Ryanair, e-mail their customers with the latest low-price deals once new flights are released, or additional destinations are announced. (g) Joint promotions between brands owned by a company, or with another company's brands. For example fast food restaurants often run sales promotions where toys, relating to a specific movie release, are given away with promoted meals.

(h) Free samples (aka. sampling) e.g. tasting of food and drink at sampling points in supermarkets. For example Red Bull (a caffeinated fizzy drink) was given away to potential consumers at supermarkets, in high streets and at petrol stations (by a promotions team). (i) Vouchers and coupons, often seen in newspapers and magazines, on packs. (j) Competitions and prize draws, in newspapers, magazines, on the TV and radio, on The Internet, and on packs. (k) Cause-related and fair-trade products that raise money for charities, and the less well off farmers and producers, are becoming more popular. (l) Finance deals - for example, 0% finance over 3 years on selected vehicles. Many of the examples above are focused upon consumers. Don't forget that promotions can be aimed at wholesales and distributors as well. These are known as Trade Sales Promotions. Examples here might include joint promotions between a manufacturer and a distributor, sales promotion leaflets and other materials (such as T-shirts), and incentives for distributor sales people and their retail clients.