An Internship Report

On
(Ufone)

SUBMITTED BY

ADNAN SAEED

REG # F005-BBA-096
BBA (HONS) MARKETING

SUPERVISED BY
DR WASEEM IKRAM

DEPARTMENT OF MANAGEMENT SCIENCES

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY
ABBOTTABAD
Session 2005-2009
 An Internship Report
On
(Ufone)

According to the requirements of H.E.C. Internship report is submitted to

COMSATS Abbottabad, for the completion of 16 year’s education in
Business Administration.

DEPARTMENT OF MANAGEMENT SCIENCES

COMSATS INSTITUTE OF INFORMATION TECHNOLOGY
ABBOTTABAD
Session 2005-2009

ii
 APPROVAL SHEET

An Internship Report
On
UFONE

SUPERVISED BY:

Name:

Signature:

Designation:

EXAMINER:

Name:

Signature:

H.O.D:
DEPARTMENT OF MANAGEMENT SCIENCES
COMSATS INSTITUTE OF INFORMATION TECHNOLOGY
ABBOTTABAD
Session 2005-2009
“DEDICATION”

iii
To my Parents, Teachers and especially to my dearest
friends(Saleem Raza, Obaid-ul- Mohsin,Qasim
Irshad, Hafiz Mohsin)

Abstract

iv
In the last quarter of twentieth century, telecommunications became the central nervous
system of any economy. It has also made a widespread impact on social life in the
country, whereby it is not only facilitating common man's communication needs but is
also providing accesses to areas which were never connected before. This overwhelming
growth of cellular phones in a developing country like Pakistan is also creating a win-win
situation for investors in this sector inspite of the fact that cellular penetration in
metropolitan cities has reached its maximum.

Ufone is a wholly owned subsidiary of PTCL. 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.

Six weeks internship with effect from February, 2009 to March, 2009 was conducted at
Ufone franchise Mandian Abbottabad, as the fulfilment of the course requirement of the
degree of Bachelors in Business Administration COMSATS Institute of Information
Technology. This report is based upon the findings related to the company’s operations in
general and specifically in the Sales and Marketing. The main sources of information
were participation in the work, observation of the operations and interviews with the staff
members, a small survey and interviewing the customers of Ufone. This was
complimented with data gathered through the company’s website (www.ufone.com) &
PTA’s website (www.pta.gov.pk). The data was analysed in comparison with the
contemporary practices related specifically to Marketing and generally on the whole
along with the SWOT (Strengths Weaknesses Opportunities Threats) analysis of the
company. Conclusions were drawn upon the information gathered and analysed and
recommendations are presented at the end that suggest possible ways of improving the
current company practices.
The first chapter states the purpose of the report and the aim of the research study, as the
fulfilment of the course requirement of the degree of bachelors of Business
Administration.

v
The second chapter introduces the organization; Ufone, historical background, general
information related to the company, the products it offers; postpaid, prepaid, the
Administrative structure, core values and the financial information.

The third chapter covers the Sales and Marketing activities of the organization. Starting
with a brief overview of the 4ps, it follows through with details about the four basic
functions of the Marketing; Product, Pricing, Placement and Promotion.

Chapter four consists of the analysis of the report and findings. The analysis was
conducted in comparison with the contemporary practices related specifically to
Marketing. A SWOT analysis of the company provided a base for some suggestions that
have been made in the subsequent chapter. The survey findings and its results are also
discussed in this chapter.

Last part of the report consists of some recommendations and suggestions that I have
given. My proposal would be of great use to Ufone and if followed properly, it can
increase the performance of employees and finally the performance of the organization
itself. Conclusion and Recommendations are presented in the last chapter which is based
upon the analysis of the data and findings of the study.

Table of Contents

vi
Acknowledgements xiii
Abbreviations xiv
Executive Summary xv

CHAPTER 1 Page No

Introduction to report

1.1 Introduction …………………………………………………………...…..…… 1

1.2 Internship Objectives ………………………………………………….………. 1

1.3 Scope of Study …………..……………………………………………………. 1

1.3 Methodology ………..……………………………………………………….…. 2

1.3.1 Primary data ………..………………………………………...……………... 2

1.3.2 Secondary Data ….…..……………………………………………….……. 2

1.4 Merits ……..…………………………………………………………….………. 3

1.5 Demerits ………..………………………………………………………………. 3

Chapter 2 Page No

Introduction of telecom industry

2.1 Introduction ….…..…………………………………………….……............... 4

2.2 Mobile Subscriber ….…..…………………………………………….……...... 5

2.3 Telecom Sector In Pakistan ….…..…………………………………………… 6

2.4 Forecast ….…..…………………………………………….……...................... 8

2.5 Advantages of developing Telecom Industry ….…..……………………… 9

2.5.1 Increased Tax Collection ….…..…………………………………………. 9

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2.5.2 Increased Employment Opportunities ….…..…………………………… 9

2.5.3 Development of Rural Areas ……..……………………………………… 10

2.5.4 Foreign Direct Investment (FDI) …...……………………………………. 10

2.5.5 Increased GDP …….…..…………………………………………….…… 10

2.6 Introductions and History of Ufone ….…..……………………………….. 11

2.6.1 Introduction of Ufone Franchise Abbottabad …...……………………….. 13

2.7 Core Values …..……………………………………………….……........ 13

2.7.1 Company Mission Statement …...……………………………………….. 13

2.7.2 Slogan ….…..…………………………………………….……................. 14

2.7.3 Performance .…..…………………………………………….……........ 14

2.8 Departments of Ufone ….…..…………………………………………….. 14

2.9 Ufone Management Team .…..………………………………………… 15

2.10 Management Hierarchy ….…..…………………………………………… 17

2.10.1 Management hierarchy Explanation ……………………………………. 18

Chapter No. 3 Page No

Marketing

3.1 Introduction ….…..…………………………………………………….…. 19

3.2 Products and Services Offered by Ufone .…..…………………………. 19

3.2.1 Post Paid Connections ….….………………………………………….. 20

3.2.2 Prepaid Connections ….….………………………………………….. 23

3.2.3 Value added services ……..……………………………………………… 26

3.2.3.1 Short Messaging Service (SMS) & International SMS …… 26

3.2.3.2 Caller Line Identification (CLI) ………………………………….. 26

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3.2.3.3 Call Waiting ………..……………………………………………… 26

3.2.3.4 Voice Mail ……………………………………………………....... 26

3.2.3.5 Phonebook Saver …………………………………………………. 27

3.2.3.6 GPRS enabled MMS, WAP & Internet Access ……………...….… 27

3.2.3.7 Prepay IR ………………………………………………………...... 27

3.2.3.8 Content Download …………………………………………….….... 27

3.2.3.9 SMS Bundle Offer ………………………………………………… 2

3.2.3.10 U-Circle ……………………………………………………….…..... 28

3.2.3.11 Camel Prepay Roaming …………………………………….…..... 28

3.2.3.12 U Share ………………………………………………………….….. 28

3.2.4 Brand ……………………………………………………………….. 28

3.3 Pricing Strategy ……………………………………………………….…. 29

3.3.1 Prices of Post Paid Connections …………………………….……… 30

3.3.2 Pricing of Prepaid Connections ………………………………..….... 31

3.4 Place Strategies ………………………………………………………..…. 33

3.4.1 There are six basic 'channel' decisions ……………………………..…... 33

3.4.2 Authorized Dealers ………………………………………………..… 34

3.4.3 Ufone Offices ……………………………………………………….. 35

3.4.4 Inventory Level at different Outlets …………………………….... 36

3.5 Promotional strategy …………………………………………………...… 36

3.5.1 Promotional Budget ……………………………………………….... 37

3.5.1.1 Total projected budget ……………………………………..… 37

3.5.1.2 Budget Allocation ……………………………………………… 37

ix
3.5.2 Segmentation and Positioning ……………..………………………… 39

3.5.2.1 Geographic ………………………………………………………. 38

3.5.2.2 Demographic …………………………………………………..... 39

3.5.2.3 Professional …………………………………………………... 39

3.5.2.4 Behavioral Benefits ……………………………………………..... 39

3.5.3 Coverage …………………………………………………………….. 39

3.5.4 Operational cities …….………………………………………………. 40

3.5.4.1 Competitive Edge ………………………………………………………

3.5.4.2 Comparison ……………………………………………………………

3.5.4 Customer Service ……………………………………………………. 42

3.5.5 Key Accomplishments …………………………………………………. 42

Chapter 4 Page No

SWOT ANALYSIS OF UFONE

4.1 What is a SWOT Analysis? ………………………………………………. 43

4.2 Why use a SWOT Analysis? …………………………………………… 43

4.3 SWOT Analysis of Ufone …………………………………………… 43

4.3.1 Strengths ……………………………………………………… 43

4.3.2 Weaknesses ……………………………………………………………… 45

4.3.3 Opportunities ……………………………………………………………. 45

4.3.4 Threats …………………………………………………………………... 45

4.4 Survey Results …………………………………………………………… 46

4.4.1 Sampling ……………………………………………………………………46

x
4.4.2 Results ……………………………………………………………………….46

Chapter 5 Page No

Conclusion and Recommendations

5.1 Conclusion ……………………………………………………………… 49

5.2 Recommendations …………………………………………………… 50

5.2.1 Recommendations for Ufone …………………………………………….. 50

5.2.2 Recommendations for Ufone Franchise, Abbottabad …………………… 51

Notes ……………………………………………………………………… 51

References …………………………………………………………………………… 53

xi
 List of Tables

Chapter 2 Page No

Table 2.1 numbers of cellular subscriber in Pakistan……………………………5

Table 2.2 Different cellular Companies in Pakistan……………………………..7

Table 2.3 Telecom Sector share in GDP (%)…………………………………….11

Chapter 3

Table 3.1 Post Paid Packages………… .………….……………………………….21

Table 3.2 Different kind of Pre-paid connections……………………………….…26

Table 3.3 Pricing of Prepaid Connections……………………………………….....27

Table 3.3 Ufone Coverage…………………………………………………………36

Chapter 04

Table 4.1 total samples to Ufone samples…………………………………………43

Table 4.2 Satisfied and unsatisfied customers …………………………………….44

List of Diagrams
Chapter 2

Figure 2.1 Pakistan Mobile Monthly addition......................………..…………..….5

xii
Figure 2.2 Forecast for mobile phone users in Pakistan……………………….…….9

Figure 2.3 Management Hierarchy………………………………………………….17

Chapter 4

Figure 4.1 Survey results……………………………………………..……………43

Figure 4.2 Satisfied Customers……………………………………………………44

Figure 4.3 Satisfied to unsatisfied Customers..………..………………………….44

xiii
 Acknowledgements

Allah Almighty is worthy of all acknowledgements for giving me the ability and strength
to carry out my work successfully!
I would like to express my gratitude to my supervisor Dr.Waseem Ikram for his valuable
time, supervision, contribution, constant guidance, patience and wise comments which
made this study possible.
I would definitely feel incomplete without thanking my parents whose prayers keep me
going further.

Adnan Saeed

xiv
 Abbreviations

PTA : Pakistan Telecom Authority

GSM : Global System for Mobile Communications
ICTs : information and communication technologies
PTCL : Pakistan Telecommunication Limited
PSDP : Public Sector Development Program
FDI : Foreign Direct Investment
PMCL : Pakistan Mobile Communications Ltd
SOP : Standard Operating Procedures
CLI : Caller Line Identification
GPRS : General Packet Radio System
POS : Point Of Sale
SIM : Subscriber Identity Module
MMS : Multi-media Messaging Service
SWOT : Strengths Weaknesses Opportunities Threats
QoS : Quality of Service
CV : Curriculum Vitae

xv
 Executive Summary
Internship was my first step in practical life, through which I learnt a lot and it has aided
me in being well equipped with valuable experience that would help me once I enter the
professional life after the completion of my studies.
In the last quarter of twentieth century, telecommunications became the central nervous
system of any economy. Just as the railroads once promoted economic growth and
development, telecommunications is now globalizing markets, reducing transactions
costs, expanding productivity, and directly increasing economic well-being. Pakistan’s
telecom sector in general and Cellular Mobile business in particular has been going
through a wave of liberalization for the last few years. The new information and
communication technologies (ICTs) have had a great impact on decision-making
processes, markets, the media, local empowerment, the targeting of marginal groups and
employment.

In Pakistan the telecom industry has flourished over the year. There has been phenomenal
growth in the Telecom Sector in Pakistan, especially in cellular mobile communication
and in the Internet. The cellular mobile subscribers are continually soaring and it has
reached 45 million with 28.5 percent penetration. Overall tendency of the country has
jumped to 35.8 percent in 2008 from the mere 2.8 percent in 2001.

Ufone is a wholly owned subsidiary of PTCL. 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 year July 2005 to
June 2006, 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 750 cities, towns and across all major highways of the country.

xvi
Six weeks internship was conducted at Ufone franchise Abbottabad, as the fulfilment of
the course requirement of the degree of Bachelor in Business Administration COMSATS
Institute of Information Technology.

This report is based upon the findings related to the company’s operations in general and
specifically in the Marketing facet. The main sources of information were participation in
the work, observation of the operations and interviews with the staff members, a small
survey and interviewing the customers of Ufone. This was complimented with data
gathered through the company’s website, PTA website.

The first chapter states the purpose of the report and the aim of the research study, as the
fulfilment of the course requirement of the degree of bachelors of Business
Administration.

The second chapter introduces the organization; Ufone, historical background, general
information related to the company, the products it offers; postpaid, prepaid, the
Administrative structure, core values and the financial information.

The third chapter covers the Sales and Marketing activities of the organization. Starting
with a brief overview of the 4ps, it follows through with details about the four basic
functions of the Marketing; Product, Pricing, Placement and Promotion.

Chapter four consists of the analysis of the report and findings. The analysis was
conducted in comparison with the contemporary practices related specifically to
Marketing. A SWOT analysis of the company provided a base for some suggestions that
have been made in the subsequent chapter. The survey findings and its results are also
discussed in this chapter.

Last part of the report consists of some recommendations and suggestions that I have
given. My proposal would be of great use to Ufone and if followed properly, it can
increase the performance of employees and finally the performance of the organization

xvii
itself. Conclusion and Recommendations are presented in the last chapter which is based
upon the analysis of the data and findings of the study.

xviii