Current Market Situation

Market Definition
Telecommunication is the assisted transmission of signals over a distance for the purpose
of communication. Telecommunication is an important part of the world economy and
the telecommunication industry's revenue has been placed at just under 3 percent of the
gross world product.
GSM Technology:
GSM is a cellular network, which means that mobile phones connect to it by searching
for cells in the immediate vicinity.
Global System for Mobile communications (GSM: originally from Groupe Spécial
Mobile) is the most popular standard for mobile phones in the world. Its promoter, the
GSM Association, estimates that 82% of the global mobile market uses the standard.[1]
GSM is used by over 2 billion people across more than 212 countries and territories.
GSM also pioneered a low-cost alternative to voice calls, the Short message service
(SMS, also called "text messaging"), which is now supported on other mobile standards
as well.

Market Size
The telecom sector worldwide is growing with an increase in opportunities for telecom
service providers. New trends are prevailing in the market and demand for new and
additional services is continuing on the rise. Pakistan, the sixth most populous country of
the world with a population of 160 millions, is expected to be the next consolidation hot
spot. Pakistan's telecom sector is becoming an ideal target
market for the IT and telecom companies around the globe.
Pakistan is Asia's top market for 2007, rising 23% this quarter
and of a rise of 15% in the first three months. This country has
an immense market potential in telecom and IT sector. The
popularization rate of mobile communication is 5% which
indicates the growth prospects in Pakistan. The mobile
subscriber base, after growing by almost 170% in 2005 and 23% in 2006, had reached
over 48 million (30% penetration) by early 2007 and was continuing to grow. The
government was continuing to work towards its targeted national teledensity of 7%
(around 10 million lines) by 2010. To achieve this target, more than one million
additional lines need to be installed every year.
Market Segmentation
As it has been observed that the telecommunication market of Pakistan is having more
than 7 crores subscribers now, & now mobile phones & its services has become the part
& parcel of life. On this behalf we are going to segmentize Ufone market according to
the following variables.

• Geographic
World region: Pakistan
Country Region: Every corner of Pakistan.
Density: Urban, Suburban, Rural.

• Demographic
Age: 13+

Income: The average of population having at least Rs.4, 000 income per month
are using communication services.

Occupation: Ufone telecom’s service is not associated with any classified

employment because communication is the need for all. While consumers are
divided according to Ufone packages (discussed in consumer analysis section).

Nationality: Resident or Non-Resident of Pakistan.

• Psychographic

Social Class: Upper lower, working class, middle class, upper middles, lower
uppers, upper uppers.

Life style & personality: {varies according to the service or package}.

 Consumer Analysis

Nature Of Buying Decision

• Buying Behavior
Buying behavior for our product will be complex with high involvement
regarding price, quality of service. The buyer will pass through learning process. He will
develop beliefs & attitudes towards the product then he will make a decision to purchase
product..

• Psychographics
While segmenting the market on psychographic basis we will consider social
class, life cycle & personality.

Social Class: They are offering “golden number chance” for upper class in which they
can also get number of their own choice & middle or lower middle normal numbers will
be offer. But service for every class will be as we believe on equality.

Life Style & Personality: Life style is the person’s pattern of living in the world as
expressed in activities, interest and opinions. In the mean time if we talk about the mobile
services people owns different styles of its usage. Some of the people loves talking,
talking & talking, some loves to chit chat, youngsters like to have prepaid services,
Business Executives used to have postpaid package. Beside these factors some people use
their credit frequently & some are big savers, and etc. So focusing on these factor Ufone
develop their packages according to above motioned psychographic factors.

• Demographics
Communication in this fast growing world is necessity for everyone & focusing on
this aspect our product will be free from the boundaries or bounds of demography. There
will be no age difference for those who want to remain in touch with others, no gender,
no limitations on the basis of income as our prices will under reach of every person.
What so ever are occupation, education & nationality.
 Competitors’ Analysis

Competitors’ Strategy
Since the telecom industry of Pakistan has revolutionized, the competition has become
more expeditious. There are five rivals in the market and every one is pulling each
others leg by offering the cheapest rates of a fine service. They are basically following
the Cost leadership to pursue cost reduction and uses tight cost controls to produce
services more efficiently than its competitors. In this situation the company can undercut
competitors’ prices and still offer comparable quality and earn reasonable profit.

Competitors’ strengths and Weaknesses

Competitors Strengths
Weaknesses

Large market share. Focusing just on On-Net

packages.
Good service availability. Fails to attract new customer

Innovative Technology. Interaction between Call & SMS

Attractive Marketing. packages.

Abu Dhabi Group of UAE Weak Marketing.

High tax deduction.

CM- World largest telecom Paktel as a brand name.

company.

Covering Federal Areas Negative image

Lowest market share
Competition & Market Share
 SWOT and Issue Analysis

Strength

 Financially Strong.

 Highly stabilized infrastructure.

 Highly Qualified Staff

 Roaming Facility in more than 150 Countries

 More then 350 Franchises and 21 owned-Sales and Customer Services.

 Ufone has Wide network.

 Ufone has a comprehensive promotional strategy.

 Ufone has a unified network of franchises.

 Electronic Voucher Distribution (EVD) is a great new re-charge option for

prepaid subscribers that doesn't relay on the availability of scratch cards for
topping up their Ufone credit. This service is great because it ensures that the
credit require for Ufone connection will always be available on-demand.

 Ufone has launched a state of the art call center in Karachi. This call center has
more then 250 customer service agents’ and will offer round-the-clock
availability to cater the growing number of customers and provide them requisite
information in accordance with their needs. The most significant feature of the
call center will be local languages- speaking customer service agents who will
assist the customers speaking Sindhi, Punjabi, Pashto in addition to the widely
spoken English and the National language Urdu.
Weakness

 Less coverages in remote areas

 Not targeting the rural areas at the moment

 No proper planning to cater the excess demand.

 Ufone being a government organization has relatively less human and financial
capital available as compared to its major competitors that are subsidiaries of
large multinationals such as Mobilink and Telenor.

 Customer services provided by Ufone are not according to the requirements of

their customers.

 High Turnover rate.

Opportunities

 Less restrictions due to be a Pakistan based company.

 As they are the Subsidary of Pakistan telecommunication limited, they can

acquire as much fund needed to improve technology.

 They can also target corporate sector

 New Technology

 There are vast opportunities of growth as market penetration rate of the cellular
market of Pakistan is only 2.3%
  The introduction of new technologies in the cellular industry has increased the
demand for it along with reducing the operation costs for these companies.

 Ufone can develop direct relationship with retailers on large scale through
Electronic Voucher Charge.

 Ufone can further improve its network in order to make more loyal customers.

Threats

 Legal environment , Government interference.

 PTCL has been given license to Cellular operation.

 Strong Rivals.

 High taxes are imposed on the cellular industry in Pakistan.

 Mobilink also going to introduce new technology and committed to more invest in
Pakistan.

 Changing technology is also a threat for Ufone because things are changing so
frequently in the market with the change in technology
 Objectives
Goals
In order to extend cellular network to new cities, towns and highways and enhance its
current installed capacities in existing cities, 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

Objectives
Ufone because it is dynamic organization with a powerful culture that
allows people to make 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
companies - owned sales and customer service Centers and nearly 250
franchises acrosses the country. The outlets are able to service the
customers with innovative solutions, and are empowered with Web based
Fracnhise management systems. Ufone is poised to face the over increasing
challenges of the market and it is confident.
 Vision
“To be the first preference of customer
in value optimization”

Mission
“Ufone it’s all about U! We are, where u wants to be….At Ufone we aim to
provide you with wider coverage, superior connectivity, clear quality, voice
signal .where ever you are Ufone keeps you connected. To lead the industry
by instilling pride in our people,
Creating values for our customer by exceeding
Their expectations in delivery of their emotions and
Sharing responsibility for our beloved country.”

Values
The stimulating corporate culture of success comes from what we value as a
company and how we live those values as individuals.

Integrity & Mutual Respect: We do the right thing.

Teamwork: We work together to get the job done.

Creativity: We seek creativity and “outside the box” thinking

Empowerment: We enable our people to make decisions with responsibility

Which increases loyalty and fosters ownership

Marketing Strategy
As the market is very attractive & our enterprise has much potential. Then we will invest
our best resources in support of our offering. Our market strategy will be based on
positioning of cost leadership, to produce low cost services more efficiently than our
competitors.

Product
Product Overview

Our first product, Ufone cellular SIM, offers the following standard
features:

Value Added Services

 “CLS” (Caller Location Service)

 Contact recovery (pre- activated).
 Free connectivity to GPRS.
 Google search & Google talk.
 Dictionary.
 News alert messaging service.
 E-call.
 Balance sharing code.

Also Available (Ufone Fun kit)

 Infotainment.
 Music.
 Fun corner.
  News.
 Sports.
 Friend search.
 Religion.
 Banking & finance.

Captive Product & Service

Scratch cards: Rs. 100, 250, 500, 1000.

Share with code: That will allow you to prevent your credit.
E-Zee load: Rs. 10 to 2000.
Smart Share : Rs 10 to 1000.
Loan Service : loan up to 10 Rs (in case of insuffiecent balance)

Product Mix & Product Line

For the first time in Pakistan Ufone telecom is offering smart & exciting Prepaid
packages & handsome Postpaid packages.

UFONE Telecom

Prepaid packages Postpaid Packages

Ufone plus Black Berry

Ufone Ghanta Package Ufone Uredge
Super Ghanta Package
60 paisa offer
Paanch ka pundra
SMS bundle offer
3 Minute Package
Badal do Qismat
Sms Night Packages
UWON
 TARIFF

Prepaid Packages
Ufone offering smart & exciting packages for the first time in Pakistan.

3 Minute package

Charging Pulse 3 minute

Ufone to Ufone 24 Hours Rs 2.00 / 3 Min

Ufone to Other Mobiles 24 Hours Rs 3.20 / 30 Sec

Ufone to PTCL 24 Hours Rs 3.20 / 30 sec

Ufone to International 24 Hours Standard Rates Apply

Ufone to Ufone 24 Hours Rs 0.50 / SMS

Ufone to Other Networks 24 Hours Rs .100 / SMS

International 24 Hours Rs 2.50 / SMS

5 ka 15
Charging Pulse 1 minute

Ufone to Ufone* 24 Hours Rs 1.125 / 30 sec

Ufone to Other Mobiles 24 Hours Rs 1.25 / 30 sec

Ufone to PTCL 24 Hours Rs 1.25 / 30 sec

Ufone to International 24 Hours Standard Rates Apply

*Get 10 minutes free after every 5 minutes of call

Ufone to Ufone 24 Hours Re 0.25 / SMS

Ufone to Other Networks 24 Hours Re 0.25 / SMS

Ufone to PTCL 24 Hours Rs 2.5 / SMS

International 24 Hours Rs 2.5 / SMS

Super Ghanta
Charging Pulse 1 minute

Service Charges Daily Rs. 5.99

 Ufone to Ufone 0400 Hrs to 1659 Hrs Rs 3.50 / Hr
Ufone to Ufone 1700 Hrs to 0359 Hrs Rs 1.00 / Min
Ufone to Other Mobiles 24 Hours Rs 1.60 / Min
Ufone to PTCL 0400 Hrs to 1659 Hrs Rs 3.50 / Hr
Ufone to PTCL 1700 Hrs to 0359 Hrs Rs 1.60 / Min
Ufone to International 24 Hours Standard Rates Apply
Ufone to Ufone 24 Hours Rs 0.50 / SMS
Ufone to Other Mobiles 24 Hours Rs 1.00 / SMS

Uwon
Charging Pulse 1 minute

Ufone to Ufone 24 Hours Re 1.00 / Min

Ufone to Other Mobiles 24 Hours Rs 1.60 / Min

Ufone to PTCL 24 Hours Rs 1.60 / Min

Ufone to International 24 Hours Standard Rates Apply

Ufone to Ufone 24 Hours Re 0.50 / SMS

Ufone to Other Networks 24 Hours Re 1.00 / SMS

Ufone to PTCL 24 Hours Rs 1.00 / SMS

International 24 Hours Rs 2.50 / SMS

UFONE Codes:
• Balance enquiry: *333#
• Helpline: 333
• Package Conversion: 124
 Price
Pricing Method:
Ufone has planned to follow 2 pricing methods as follows:

• Value Based Pricing

We will set the price based on the buyer’s perception of value
rather than on our cost.
• Competition Based Pricing
We will also consider prices, based on the prices that our
competitors will be charging.

Pricing Strategy
White Bird pricing strategy will be the ‘Market Penetration’. As it has been defined
earlier that how competitive the market is and the rivals are following the cost
leadership. In order to divert the attention of the customer market penetration will be
followed.

Distribution
Ufone adopt the Intensive Distribution Strategy and Vertical Marketing Systems, consist
of different intermediaries. The services will be delivered through the following
channels:

 Full Service Retail Sales: ( Sales & Service

Centers)
 It involve the sales of our offering through a full service retail
distribution channel.

 Wholesale Sales: (Franchises)

It involve the sale of our offering using intermediaries or middle men to

distribute our product or service to the retailers as well as customers.
Beside it, will also offering our services as a franchise.

 Self-Service Retail Sales: ( Public Retail Stores)

It will involve the sale of our offer using self service retail methods of
distribution

Promotion
To sell their offering the are effectively promoting and advertising it. For promotion,
their strategy is PULL strategy. To implement on the strategy, they are spending a lot on
advertising and promotion to build up consumer demand.

Advertising Strategy
For the new product launching in the market, we have planned and divided the
advertising into 4 phases:

1st Phase:
Corporate Advertising
Initially we will make our corporate identity in the minds of our customer.
As “Ufone telecom________It’s all about U.”
Because when we have a variety of offerings & our audience is fairly broad, it is often
beneficial to promote our enterprise identity rather than a specific offering.

2nd Phase:
Product & Product Comparison Advertising
After being identified in the audience we will introduce our offerings, where our offerings
will be one of the several similar capabilities. If our offering stacks up well when
comparing features, then a product comparison ad will be beneficial.

3rd Phase:
Product Benefits Advertising
After launching the product, we will promote our offering without comparison to
competitor. To increase sales, the product benefits ad will be the correct approach.

4th Phase:
Occasional Advertising
Being a part of Pakistani culture, we have planned to advertise regarding to the event
and occasion. We will also come up with new offering on different occasions like
Ramzan, Eid, Independence Day etc. it’s a part of our objective that we will offer our
postpaid package on Eid.

Adervertising Tools

Advertising

Electronic Media Print Media

T.V Newspapers
Radio Magazines
Internet Hoardings/ Signboards
Wall Paintings
Advertising Vehicles
Public transport
 Action Programmes

They offer such incentives like “free balance, extra minutes etc” to our customers as well
as to retailers in the shape of higher profit in cards recharging & E-zee loading and
planned to introduce a scheme especially for retailers on higher selling.

They promote their brand by hiring a celebrity model as a brand ambassador for
advertising & fill the bill boards, hoardings, & ads with his/her picture.

The month of September hold the month of Ramzan in the Muslim calendar. And as we
have developed our plan to introduce the postpaid package in the month of October,
which will be the occasional month of Eid. In these months they have to conduct
occasional marketing campaign and will also start the sales promotional activities for
our postpaid packages which will be launch in 4th October, but advertising will be started
in September.

Personnel Requirement
To pursue the effective progress of the company, they develop an efficient work force in
the company. They hired different entrepreneurs and consultants that help the
organization to make effective decisions in any situation. They further hires different
level of employees including middle & lower management, who will share their creative
& innovative ideas & their services in order to achieve the goals & objectives of the
company. After hiring they passed through the following process.

• Assign Responsibilities

To run our organization smoothly & effectively they hired both fresh &
experienced employees. In order to implement on their plan they decided to
put fresh employee under the supervision of experienced one. This idea will
help them to create a healthy environment of fresh & experienced
employees. They assigned the task as per their skills and specializations.
 • Give incentives

No motivation means no improvement in the progress of employees. We

provide state of the art incentives and fringe benefits to employees. . Salary
increment will also consider but although all of the incentives will be the
result of the performance.

• Training on sales
Sales will be the major aspect in order to achieve objectives. They trained
their sales representatives & develop the negotiation skills in them. Many
other training programs are planned to be conducted to polish employee’s
skills.

FORECAST AND BUDGETING

Financial Analysis
Ufone has over the last six and a half years made huge investments in the national
economy. PTML has successfully been able to build upon its excellent financial results
from the previous year. During the year Ufone successfully completed the network
expansion of Phase IV 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.

Since Ufone is an SBU of PTCL therefore they are not authorized to disclose their profits
separately. For the same reason PTCL’s financial statement incorporates the profits
earned through its mobile operations and the figure are displayed in their annual
reports.

Ratio Analysis of Ufone

 Ufone current ratio in 2008 was 0.30

 Asset test ratio in 2008 was 0.31

 Ufone debt to equity ration inn 2008 was 0.35

  Ufone debt to total assets ration in 2008 was 0.64

 Ufone interest covering ratio in 2008 was 16.3

 Their receivable turnover ration in 2008 was 07.07 times.

 Inventory turnover ratio in year 2008 was 18.6 times.

 Total assets turnover ratio in year 2008 was 0.32

 Net profit margin in 2008 was 28.4%

 Ufone return on investment in 2008 was 10%

Future Financial 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 to new cities, towns and highways and enhance its current installed
capacities in existing cities, 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.

Implementation Controls
“This segment will enable the company to measure planning process.” their objective
stated where they want to be, the plan sets out a road map to our destination and then
the control will tell us if we are on the right route or not.
They are tightly controlled to measure to closely monitor quality and customer service
and satisfaction. This will enable us to react very quickly in correcting any problem, that
may occur. There are so many approaches from which performance can be evaluated.
But ufone use these approaches.

Five Approaches
• Sales Analysis
This analysis consists of measuring and evaluating actual sales in relation to
our objectives. As we have designed our objectives that we will have to
achieve the sales volume of 3 million subscribers in 1 year. If unfortunately
we will fail to touch the volume target, we will closely analyze why the
company could not achieve the expected sales volume.

• Market Share Analysis

As we mentioned above that if we could not achieve our target volume that
will affect our market share. We will analyze the causes of failure through
the market share equation, that will provide four possible explanation.

Overall Market Share = Customer Penetration X Customer Loyalty X

Customer Selecting X Price Selectivity.

• Quality Control
We will be keeping checking our quality of service from various testing. There
may be some circumstances in which the network can get busy like Eid, New
years and such occasions. So these occasions would be the early warning for
us to get ready in order to tackle such situations.

• Marketing Information System

MkIS will provide us the timely accurate information about the marketing
environment. It will efficiently enable us to develop strategies and take
proactive measures to face changing consumer preferences and increasing
competition.

• Customer Relationship Management

We will develop a CRM, that will allow our customer to directly share their
problems and suggestions regarding our services by any medium, if it needs
be improved or modified. There will be a toll free number of our CRM
 department, which will be controlled by different qualified and trained CROs
that will help our customer in solving their problems and providing any
information regarding our service.

Bibliography
Books Concerned:
Market Management and Principle of Marketing.
By Philip Kotler.

Management
By: Weihrich koontz.

Internet Approach:

 www.ufone.com

 www.mobilinkgsm.com

 www.telenor.com.pk

 www.waridtel.com
 www.paktel.com

 www.ptcl.com.pk

 www.pta.gov.pk

 www.telecompk.net