3. BY: Imdad-Ul-Haq
Table of Contents
Introduction:...................................................................................................................................1
Background: ..................................................................................................................................1
Mission:..........................................................................................................................................1
Achievements: ..............................................................................................................................1
Operating performance: ..............................................................................................................2
Growth rate:...................................................................................................................................2
Technology:...................................................................................................................................2
Services: ........................................................................................................................................2
Mobile Products:...........................................................................................................................2
Product/Services: .........................................................................................................................3
Strategy:.....................................................................................................................................3
Price: ..............................................................................................................................................3
Strategy:.....................................................................................................................................3
PLACE............................................................................................................................................4
Strategy:.....................................................................................................................................4
Promotion: .....................................................................................................................................4
Strategy:.....................................................................................................................................4
Advertising:............................................................................................................................4
Public Relations:...................................................................................................................5
Direct Marketing: ..................................................................................................................5
Personal Selling:...................................................................................................................6
Competitors:..................................................................................................................................6
Competitive strategy: ...............................................................................................................6
Future Plan:...................................................................................................................................6
4. 1
Introduction:
Ufone GSM is a Pakistani GSM cellular service provider, it’s one of six GSM mobile
companies in Pakistan. Ufone currently caters for International Roaming to more than
260 live operators in more than 150 countries. As the world of telecommunications
advances, Ufone promises its customers to stay ahead, developing and evolving, to go
beyond their expectations, because at Ufone, it’s all about U
Background:
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
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. 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:
Our mission is to provide best services with best coverage that would eventually
generate profit for the company and its stakeholders.
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
Dollar170 million. As a result the asset base of the Company has increased from
Rs. 20billion 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 from2,
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 across59countries.
The Company has also been awarded a new License for providing cellular
services in Azad Jammu & Kashmir and the Northern Areas.
5. 2
Operating performance:
Ufone’s 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 of2005
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.
Technology:
After Mobilink, Ufone is the second cellular service provider company that is
based on GSM technology. Basically they are using GSM 900 technology with version
2001.Apart from this they are very strong in technological developments especially they
have a well-established research and development department that is working on new
technological developments in their products. Like they are the first company in
Pakistan that is offering GPRS facility to their subscribers.
Services:
Both Post-Paid and Pre-Paid Ufone subscribers can enjoy any/all Ufone services
including GPRS based services (MMS, Ufone Internet, Pocket Stocks), Global SMS,
etc.
Ufone is proving these all services to its consumers
Internal Excess
Online Billing Payment
Power SIM
WAP
International Roaming
Voice Mail
Call Management
Messaging
Mobile Products:
Ufone is offering the following Mobile Products
6. 3
Utalk
Missed Call Notification
Phonebook Saver
Trivia Quiz
Ushare
Uloan
Voice Bucket
Utunes
Awaz SMS
Uchat
Ugames
Call Block
Self Service Kiosk
U kisaan
U health
Ufone prize bond
Ubazar
Hajj Guide
Product/Services:
Ufone is a service providing company. Service is any intangible product that consists of
activities, benefits or satisfactions offered for sale.
Strategy:
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, and quality
and after sale service.
Price:
Cellular service providers are facing intense price competition in contemporary market.
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:
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
7. 4
and dynamic pricing strategy to meet the customer needs and ever changing price
competition.
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.
Strategy:
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 cites,
but it is also considering improving its promotion in rural areas as well.
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:
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.
ADVERTISING MEDIA:
8. 5
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).Ufone also plays its ads on
local channels like WASEB and Punjab TV.
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 Mikal 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”
Sales Promotion
Public Relations:
Ufone isless conscious ofdeveloping 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.
9. 6
Personal Selling:
Ufone administer personal selling facilityto sell their PostPay connections targeting well to
do people and businessmen
It won’t be an exaggeration to say that Ufone has placed itself where it is now through
brilliant promotions.
Competitors:
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 direct competitors:
ZONG (former PAKTEL)
Telenor
Mobilink/Warid
World Call
Competitive strategy:
Ufone’s competitive strategies are Customer intimacy and Differentiation. Ufoneaims at
fore passing Mobilink in its competitive race.
Future Plan:
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.