DEDICATION I dedicate this project to my late parents about whom I say: My dear parents, you came in my life when

I was in infancy. Even though you have longed passed but your memories live around me every day. You helped me discover a strong foundation at which my spirituality and carrier could be built upon. You gave me the ability to find the confidence within myself that I would need to maintain throughout my life. You both had one word, one lesson, one ruleFIVE DAILY PRAYERS!!! You taught me to pray on time, pray sincerely and pray daily that I did! I still do! and I always will! I thank you for making me what I was, what I am and what I will be because my achievement is in reality your achievement. You are missed, you are remembered, you are loved by me and all other siblings. You are the reason that I have a reason today in my life. I kneel before Allah and pray from the depths of my heart that may Allah forgive both of you, shower his blessings on both of you and may you succeed in all the destinies from the grave until Qayamat and reunite us again in Jannat-ul-Firdaus (Aammeen)

CHAPTER -1 1.1 INTRODUCTION

This report contains the different work and activities that are performed in Ufone. It is a good experience as an internee to have some knowledge and experience. In the end of the report there are some recommendations and suggestions for Ufone. The study is all about the marketing practices at Ufone along with its functions. Following are some of the experiences which are gained during this time period.

1.2 Objective of internship The main objective of the internship is that it is the requirement of degree. If students dont have the certificate of it then institute will not offer degree. A part from that internship is also important for gaining some type of experiences while working in organizations because after the completion of degree practical life will start. The purpose of the internship is to evaluate the marketing practices in organization under consideration and to compare these practices with contemporary marketing practices. This will enable the student to be a future marketing research practitioner. The report is essential and academic requirement for the fulfillment of the degree. To understand how practical things are different. To understand the marketing strategies of Ufone. To improve different types of skills required. To know that to what extent bookish things are relevant to the practicality. they work and what difference they are actually making to the telecom industry in Pakistan Improvement in my own to manage the professional things so that I would be able to do things professionally tomorrow in corporate world 1.3 Scope of Study Working in organization is a very good experience for all of us. Through the internship time period I realized and came to know about the whole organizations its working, performance and other daily activities. 2 To broad my own vision about the organizations structure in depth that how

Different types of techniques are use to analyze the performance. By using the techniques we came to know about strengths and weakness of the organizations. The people interested in this organization can make a true image of the organization in their mind by reading it. It can also be helpful for the management of Ufone who can easily judge their abilities. The positive aspects for the organization and the negatives aspects it faces have also been discussed and these have been used to make the recommendations for the improvement of the performance. These recommendations can be very helpful for the top management of the organization to remove the defects and to improve the overall performance. 1.4 Methodology The Information is collected from various sources. The methods used for collection of primary and secondary type of data are as follows:1.4.1 Primary data Primary data is collected by using following methods Observation method Interviewing method Survey (Questionnaires). . 1.4.2 Secondary Data Secondary data is actually collected from the Existing files and Records and also from the data available in the following documents. Manual of the Ufone Approved SOPs (Standard Operating Procedures) Document Guideline from PTA Teacher Handbook Promotion Policy.

1.5 Advantages This report shall be beneficial to all the marketing students, because it contains all the essential data and information about the Marketing strategies, plan and recommendations for future course of functions of the Ufone. It could also be very good to study for those who are interested in organizations studies of history and their struggle to come up at scene. After reading this report, one can easily understand, as to what extent the theory is different from practical implications and also how marketing functions are implemented in the real life Organizational scenario. 1.6 Disadvantages The report does not contain all the facts and figures about the area under study due to certain limitations. Some data, due to its nature of being confidential was difficult to access. . Despite of these constraints, the report encompasses all the basic and essential information required because the study has been conducted strictly in accordance with the objectives and within the parameters of the study. Survey, interviews and observation was used as primary data collection methods and have negated the effect of the aspect. The report doesnt include the detailed descriptions of the Ufone as a whole but its marketing issues, policies and other important areas desired in this report. One of the major factors was the time limitation, as having the internship of only eight weeks much time could not be dedicated to study all the detailed aspects of marketing.

CHAPTER -2
4

OVERVIEW OF THE ORGANIZATION

2.1 Introduction Telecommunications has now become 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. Pakistans 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 (Mahmood, 2005). The competition is still in its infancy stages. Mobile cellular segment is growing at a disproportionately higher pace in relation to the rest of telecom services. Growing demand of cellular services has created a number of openings on the economic front in terms of employment generation and increased business activity. It is also estimated that there is a potential demand of about 25 million cellular subscriptions by 2018 (Pakistan Ministry of Information Technology IT & Telecommunication Division, Pakistan 2003). 2003 Telecom industry is one of the leading industries of Pakistan itself. The last five to eight years have been terrifically favorable for this industry. At first there was monopoly but with the passage of time the completion increased as more and more players entered the market. Now the situation is such that it is quite difficult to point out a leading competitor of any company in this industry. But it doesnt mean at all that the companies do not have any competitor instead it would be appropriate to say that one operator cannot be declared as leading competitor in telecom industry. Since this industry is growing at such a fast and rapid pace, and the over all environment and the nature of market is so dynamic that every single day one operator takes the lead based on the service or product it launches and the other day another operator takes on the lead. Same is the case for all the players of this industry. None of the players can point out exactly its competitor based on the facts mentioned above. Business Monitor International (BMI) has ranked Pakistan as a key destination for telecom growth. 5

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 in spite of the fact that cellular penetration in metropolitan cities has reached its maximum. Currently, there are six mobile companies operating across the country of which Zong, Mobilink, Ufone Telenor and Warid Telecom are relatively mature players. In the recent years mobile companies faced intense competition among existing mobile companies. A number of price cuts and value added services were offered by these operators including bundled offers of handset and connection.

2.2 Mobile Subscriber

Telecom sector is seeing exorbitant growth in Pakistan. The sector is said to be growing at a fast pace yearly. Mobile subscribers are 33.5 million as of October 2011. In fact Pakistan has the highest mobile penetration rate in the South Asian region. According to the PTA, Mobilink continues to lead the market with 33.5 million subscribers, followed by Telenor (27.60 million), Ufone (20.82 million), Warid Telecom (15.98 million) and Zong (13.16 million). All Telecom companies are now working to broaden their network in Pakistan Azad (free) Jamu and Kashmir and Northern Areas, which were normally ignored till now. Till now 5 agencies of tribal areas are covered for mobile service.

No 1 2 3 4 5 Table 2.1

Company Mobil ink Telenor Ufone Warid Zong

Subscriber 33,537,922 27,607,043 20,828,145 15,985,299 13,168,025

Source: Retrieved from Pakistan Telecommunication Authority (http://www.pta.gov.pk) on 30th Jan 2012

2.3 Telecom Sector in Pakistan Currently, telecom sector is regarded as a sector where local and foreign investment rate has been highest. During last two years higher growth of this sector has set the course for a profitable business for investors and perpetual convenience for consumers. With the coming of new companies in this sector consumers are enjoying more facilities and accessibility. The cellular mobile subscribers are continually soaring and it has reached 111 million with 48.7 percent penetration. Overall tendency of the country has jumped to 35.8 percent in 2011 from the mere 2.8 percent in 2001. There are five companies operating in Pakistan now

At the top is Mobilink, the Pakistani unit of Egypt-based telecom company Orascom. It has been in Pakistan since 1994. With 33.53 million subscribers it has the largest market share. Its shares are listed on the Egyptian and London stock markets as GDRs. My next post will focus entirely on Orascom and its performance.

Ufone, a wholly owned subsidiary of Pakistan Telecommunication Co. Ltd (PTCL), is Ufone now under the control of Etisalat group of UAE. With 20.82 million subscribers it is the third. For those in Pakistan it is the one company where they can easily invest locally. Ufone is struggling very much to reach the mark

Warid, owned by the Abu Dhabi group of the United Arab Emirates and sister of Warid Wateen group is number 4 with 15.98 million subscribers that is 14% market of subscribers.

Norways Telenor, a recent entrant with about a billion US dollar investment in Telenor Pakistan has been doing well, based on its recent earning report. It has about 27.60 million subscribers or 11% of the market. Telenor stock is listed in the Oslo stock market (TEL) and NASDAQ NY (TELN).

ZONG is the first international brand of China Mobile, launched in Pakistan in 2008. The company is often cited as China Mobile (Pakistan) or CMPak. As of late 2011, it had a subscriber base of 13.16 million.

Table 2.2 2.4 Forecast With subscriber numbers increasing every day and mobile penetration increasing every month, mobile cellular sector of Pakistan is likely to cross all estimates. The timely launch of Telenor and Warid, expansion of Mobilinks network on monthly basis, Privatization of Ufone's parent company PTCL, launch of Zong and reduction in government taxes and handset prices are all right ingredients for best possible growth patterns any mobile sector can have. According to estimates made by BMI research for Pakistan mobile market, there would be more than 145 million mobile subscribers by December, 2015. Pakistan Telecommunication Authority is making all efforts for the healthy growth of telecom industry. Special interest is, however, given to mobile segment where attempts are made to create win-win scenario, in which consumers get cheaper access, operators grow their business and government benefits from increased tax revenues. All this would help achieve one of the main objectives of regulator i.e. increasing teledensity. 2.5 Advantages of developing Telecom Industry There are many advantages of developing of telecom industry in Pakistan. Some of them are:

2.5.1 Increased Tax Collection Under Pakistan Telecommunication Telecom sector has contributed over Rs. 45 billion to national exchequer through taxes (GST and Activation Tax) and regulatory charges by PTA in 2006-07, this contribution comprises 17% of the total Public Sector Development Program (PSDP) for 2006-07. 2.5.2 Increased Employment Opportunities By issuing new licenses in the telecom sector, approximately 202,947 direct and 233,266 indirect employment opportunities were created in 2005-06. An addition of about 94,000 Payphones has resulted in massive employment. In addition franchises, vendors and distributors of the telecom companies have also provided a number of employment opportunities in the country. 2.5.3 Development of Rural Areas Keeping in mind the need for development of rural areas as a key objective, private sector is working hand in hand with the Government. In this regard, telecom operators are encouraged to provide services in rural areas. Mobilink's village phone is one such example. Similarly PTCL's reduced tariff for rural areas and provision of WLL services in the areas where landline is not available, are some of the steps taken by the incumbent operator i.e. PTCL. Also, PTA has approved the use of mobile phone as a PCO in rural areas where landline is not available. 2.5.4 Foreign Direct Investment (FDI) The Foreign Direct Investment in telecom sector till the end of June 2004 was US$ 207 million (32.4% of the country's total FDI). This investment was basically made in acquisition of licenses and frequencies. While rolling out their networks the operators are making huge investments in the infrastructure. In 2004-05 Telecom sector attracted US$ 494.4 million FDI in Pakistan (32.4% of total FDI in Pakistan), which is mainly for infrastructure rollout. According to an estimate, it is expected that next year US$ 1.5 billion FDI would come to the telecom sector. Mobilink is negotiating with a foreign consortium to get foreign exchange to the tune of US$ 500 million for its network expansion. Similarly, the Board of Directors of Millicom (Instaphone) in their first ever Board meeting held in Pakistan, indicated their plans of further investment to the tune of US$ 1 billion in Pakistan in the next 2 to 3 years. 10

2.5.5

Increased GDP

The contribution of telecom sector to the national exchequer increased to Rs 110 billion in the year 2007-08 on account of general sales tax, activation charges and other steps as compared to Rs 100 billion in the year 2006-07.Wireless local loop and the landline telephony sector have also been liberalized and private sector has entered thus increasing the teledensity rate. In mid-2008, the Local Loop installed capacity reached around 5.5 million. Telecom industry created of 80,000 jobs directly and 500,000 jobs indirectly. The Federal Bureau of Statistics provisionally valued this sector at Rs.982, 353 million in 2005 thus registering over 91% growth since 2000.

Table 2.3 Telecom Sector share in GDP (%)

Years 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Percentage Share of GDP 1.6 % 1.6 % 1.7 % 1.7 % 1.9 % 2.0 % 2.2 %

Source: Retrieved from Home-Pakistan Telecommunication Authority (http://www.pta.gov.pk/index.php?option=com_content&task=view&id=648&Itemid =600) on 30th June 2010 11

2.6 Introduction and History of Ufone. Ufone commenced its operations from Islamabad on January 29, 2001. It was established to provide quality cellular services across Pakistan. Previously it was a subsidiary of PTCL but after the privatization of PTCL, it has been acquired by Etisalat, a UAE company. Ufone has expanded its network coverage to more than 3670 locations which include many cities and highways. It has a subscriber base of 20.82 million as of October 2011. Ufone currently caters for International Roaming to more than 220 live operators in more than 125 countries and introduced International roaming facility for Prepaid subscribers. Other than this GPRS Roaming facility is also available with more than 110 live operators in more than 80 countries. Ufone has 200+ Sales & Customer Service Centers across Pakistan to provide services to its customers. 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. 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.

During the year 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.

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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 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. 2.6.1 Nature of organization organi Ufone, a wholly owned subsidiary of Pakistan Telecommunication Co. Ltd (PTCL), is Ufone now under the control of Etisalat group of UAE. With 8.4 million subscribers it is the runner up. For those in Pakistan it is the one company where they can easily invest locally. 2.7 Business volume 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 13

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. 2.7.1 Company Mission Statement The most common objectives for a mission statement are to communicate direction for an organization, to guide decision making and to motivate staff. They primarily communicate the strategic direction of the organization (Bartkus et al., 2004). Mission statements are a primary management tool (Bart and Hupfer, 2004), The development of mission statements can significantly impact on the survival and growth of a business (Analoui and Karami, 2002). 2.7.2 To achieve vision by having - An organizational environment that fosters professionalism motivation and quality. - An environment that is cost effective and quality conscious. - Services that are based on the most optimum technology. - Quality and time conscious customer service - Sustained growth in earnings and profitability - Increased co-operation among various departments 2.7.3 Slogan Slogans have on the attitudes and perceptions of consumers towards brand extensions (Boush 1993). The slogan of Ufone is Its all about you. This slogan also focuses customer. From this slogan, its shown that for our organization the most important thing is the customer. The main purpose of the organization to adopt such policy measures which can satisfy the customer. So this also create some sort of confidence among the customers and they feel pride of being the part of such organization where proper attention is paid to them and proper weighting and importance is given to their ideas and suggestions. 2.7.4 Performance 14

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. 2.8 Departments of Ufone In Ufone there are 7 departments, which are prevailing in Ufone. They are: Human Resource & Administration Marketing Customer Care Information System Engineering Finance Quality Assurance

2.9 Profile of Employees The management team of Ufone consists of following personals: Mr. Abdul Aziz has joined Ufone as President & CEO in December 2007. A fellow Chartered Accountant, he has over fourteen years of experience in the Telecom Industry both local and International including Europe, Asia and Africa. During his career he has held various senior level positions with companies including Millicom International, S.A., Ufone GSM and Celtel International. Mr. Aziz, being first CFO/Cosec was a key member of the Core Team which launched Ufone in 2001.

2.10 Management Hierarchy Explanation. Naveed Khalid Butt (Chief Officer (Customer Operations) With over 14 years of commercial & technical experience in the telecommunication industry, Mr. Naveed has worked on senior management positions with various telecom 15

operators in Pakistan. Presently he is heading the Customer Operations department at Ufone since June 2004. Mohammad Aslam Khan (Chief Technical Officer) Mr. Aslam Khan has over 30 years diversified experience with Saudi telecom Company (STC), Global Telecom Consultant Group, Cellular operators, multinational telecom vendors and Pakistan Air Force. He has held various management positions in telecom consultancy, operations and maintenance, project and product management disciplines. Mohammad Nadeem Khan (Chief Financial Officer) A Fellow Chartered Accountant Mr. Nadeem Khan has around 11 years experience in the telecommunication industry both locally and internationally. He holds a diversified portfolio as international auditor at MIC, Luxemburg and served in the capacity of Financial Controller in Millicom Cambodia before joining Ufone as Chief Financial officer (CFO) in 2003. Saleem A Chauhan (GM Administration & Procurement) Mr. Saleem brings with him around 15 years experience in the banking sector with his last appointment as VP and Head of Operations at SME Bank. Presently he is heading the Administration & Procurement of Ufone since 2004. Abdul Rehman Faisal (Senior Manager Human Resources) (Senior Resources) Faisal has over 13 years telecom experience in Pakistan. He has been associated with Ufone since its inception and possesses in-depth knowledge of HR operations of the company. He has the distinction of being noted as Dedication to Work Award by the Ministry of Science & Technology, Pakistan in 2002. Maj. Gen.(R) Hamid Hassan Butt (GM Coordination (Govt. Relations) Prior to joining Ufone in 2005, Gen. (R) Hamid Butt was the GM (Manufacturing & Services) in Pakistan Railways. He was also Member, Pakistan Telecommunication Authority (PTA). 2.11 Product Line 16

Product includes product planning, product research and development; product testing; and the service accompanying the product. Products may be described in terms of their features and benefits. Features are product characteristics that deliver benefits; we buy products for their benefits. Ufone offers a large variety of cellular products and services. It specializes in providing connections to the customer and offers packages that enable them to utilize the services that are offered along with the different connection packages. Pakistan Telecommunication Mobile Limited (PTML) offers a combination of product and service. Before someone can become a Ufone customer they have to purchase a SIM card that confirms that a mobile connection has been given by this company. The SIM card is therefore the product that the company offers as it is tangible in nature. After the SIM is purchased a customer has a wide variety of packages to choose from along with the facility of paying before or after the use of Ufone services. Ufone offers 2 major types of packages, which include further options as to the prices and facilities available with each. These packages are mainly classified as either: 2.12 Products of Ufone: 2.12.1 Prepaid Services and postpaid services

Ufone provides prepaid cellular services and the users of prepaid service have various scratch card options available for recharging the balance in their prepaid accounts.

Table 2.5 Different kind of Post-paid connections Monthly Access Charges Peak outgoing Off Peak and Free Night outgoing Minute per minute 17 Value Added Services per minute

Ufone Rabita Ufone Asaish

300 750

3.5 2.75

3 2

Nil 70

Free CLI, Voice Mail, SMS and FnF and incoming SMS All Above + Conference Call, SMS and FnF and Call Waiting

Ufone Lajwaab

1750

300

All Above + Conference Call, SMS and FnF and Call Waiting

Postpaid Services

Ufone offers various postpaid packages to its customers which best suit their needs. The following services are available for the postpaid customers: Special discounts - on a range of talk plans Virtual Private Network (VPN) - A customer's own private network within the Ufone network GPRS - Internet Access on a GPRS enabled phone and mobile office so a customer can be in touch with business while out of the office Umail - For wireless email products International Roaming - available in many countries Exclusive Customer Care - personal service Exclusive Rewards - that customers receive on using their Postpaid connection

2.12.2 Value added services Ufone offers a host of value added services for its subscribers to provide convenience and better communication solution. With Ufone's advanced technology and state of the 18

art network, customer will soon be able to enjoy unheard of telecommunication facilities and services on Ufone network . 2.12.3 Caller Line Identification (CLI) Customer can find out the callers number automatically before answering the phone as it is displayed on the customer handset. 2.12.4 Call Waiting Call Waiting allows customer to receive calls while in conversation with another caller. To activate call waiting, customer can call 333. 2.12.5 Voice Mail Voice mail lets customer receive and store messages when customer are unable to attend calls; if customer phone is switched off, busy or out of coverage. To activate customer voice mails customer can call 333. To retrieve customer voice messages customer should dial 191. Customer can enjoy message storage capacity of 10 messages. 2.12.6 Phonebook Saver Lost or changed your phone and worried about your contacts? With Phonebook Saver, now you can retrieve all your contact numbers instantly whenever you lose them. So go on and create your personal Phonebook Saver account and never lose a contact again.

2.12.7 GPRS enabled MMS, WAP With GPRS (General Packet Radio System) you can access emails, browse the internet, send and receive multimedia messages from your handset.

2.12.8 Internet Access You can access the internet by simply entering the desired website address on your phones internet browser. 19

2.12.9 MMS This service allows you to send and receive pictures, sound & video clips. 2.12.10 Configuring Your Handset To get GPRS / MMS settings on your handset simply type handset model and send it to 222, example type Nokia 6230i and send to 222 to get the desired GPRS / MMS Settings. 2.12.11 Prepay IR Now roam in various important destinations worldwide with the most affordable and economical tariff offering. 2.12.12 Content Download Ufone Post pay offers a variety of content download services like: Monophonic / Polyphonic Ringtones Java Games Logos Picture Messages Color Wallpapers Mobile Themes etc.

2.12.13 Unlimited SMS With this offer the subscriber can send unlimited SMS throughout the month in only Rs 80/- to all networks.

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2.12.14 U-Circle At Ufone it is easy for customer to call friends & family with U Circle. Now customer can talk more for less with the most economical rates to call his Ufone Circle. Customer can select up to 5 Ufone numbers & 1 PTCL number and enjoy the special calling rate of 45 paisas per 30 seconds. 2.12.15 Camel Prepay Roaming International roaming is no longer a post paid luxury, because now with Ufone Prepay customer can enjoy expanding coverage, low rates and the best part is that you dont coverage need to deposit any security fee, simply call or visit your nearest Ufone service center and have your service activated. Top up your account and enjoy effortless international roaming in select countries. Be sure to take your Prepay scratch cards along with you because now you can even top up your account while on vacation. With Ufone Prepay it just keeps getting better. 2.12.16 U TOPUP U top-up is an easy and convenient mode for recharging the prepaid number. It is a re-charge option for prepay users that does not rely on the availability of scratch cards.

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2.12.17 U Share With this package the customers can share their balance with other Ufone users through a simple SMS.

2.12.18 Call block service Ufone had started call block service for its customers to get rid of unwanted calls from wrong numbers. Customers can avail this service by dialing 420. 2.12.19 Handset offer Now customers can get handset of ufone at very nominal price of Rs. 1250, with extra feature of torch in new handsets. Its along with a connection and 100 free minutes. 2.12.20 Other offers

U games

U stocks

U chat

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Music stations

Awaz sms

2.12.21 Brand 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, Ufones 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. Ufones 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 2.13 Organizational structure In Ufone the hierarchy is very lean, in general the whole setup is centralized, all the matters are to be reported to the main company and all the policies and targets are approved at the higher level. But at the department level the structure is decentralized. UFONE has following functional departments Technical Customer operations Finance Administration & Procurement 23

Human Resource Co-ordination (Govt. relations) Marketing

2.14 Management of Ufone There are 7 different departments each headed by a General Manager. They report directly to the CEO. Then there are three BUMs (Business Unit Managers) who report directly to the CEO but they are also directed and responsible to report to all the GMs of the 7 other departments. BUMs are divided geographically into three divisions BUM North (Islamabad, Peshawar, Jehlum) BUM Central (Lahore till South of Punjab) BUM South (Entire Sindh)

2.15 Ufone Offices Ufone Head Office 13-B, F-7 Markaz, Islamabad. Ph: +92-51-111-333-100 Ufone Rawalpindi Office Modern Radio Building, Bank Road, Sadder, Rawalpindi. Ufone Lahore Office 15S, Gulberg2, Lahore. 8 Ameen Chambers, Davis Road, Lahore. Ufone Karachi Offices D-16, Block D, Near Pizza Hut, North Nazimabad, Karachi. Plot BC-11, Block 9, Mehmood Center, Clifton, Karachi. Farah Center, Block 1B opposite Urdu Science College, Karachi. Ufone Peshawar Office I-6, Faker-e-Alam Road, Peshawar.

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2.16 Marketing operations At current times of constantly shrinking budgets and increased competition, a company should continually invest in seeking the most effective marketing strategy that it can develop as a market-driven strategy allows a company to truly understand its market and the customers that are the basis for this market. This effort allows for a more effective integration of all activities that may impact customer value, which in turn affects both return-on-investment and profitability. An effective marketing effort is based upon information, which can be used in terms of developing sound business strategies, increase your return-on-investment, allow for more successful innovation, and lead to better branding efforts, increase the effectiveness of your promotional efforts and strengthen your web marketing efforts (Leventhal, 2006). There are two significant implications of Marketing. Focus: The entire system of business activities should be customer-oriented. Customer wants must be recognized and satisfied. Duration: Marketing should start with an idea about a want-satisfying product and should not end until the customers wants are completely satisfied, which may be some time after the exchange is make. (J. Etzel, J. Walker, J. Stanton; Marketing 13th Edition. McGraw-Hill)

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CHAPTER -3
3.1 Structure of the Marketing Department Marketing department handles all the marketing activities concerning all Ufone packages and brands. A recent marketing survey conducted by a prominent marketing research company showed that Ufone has considerably increased its brand visibility and image through its vibrant marketing strategies. Marketing departments hierarchy is as follows: CMO ASSISTANT MANAGERS HEAD OF DEPARTMENTS MANAGEMENT TRAINEES SENIOR EXECUTIVES INTERNEES Brand Activation Value Added Services International Roaming Media Planning (Marketing Strategies) Marketing Finance

Sub Departments of Marketing Department:-

3.2 Marketing strategy Different types of marketing strategies are used in Ufone Market Segmentation Target Marketing Strategy Positioning Strategy Differentiation strategy Customer relationship strategy Market orientation Strategy

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3.3 Product Planning, Development & Management Product includes product planning, product research and development; product testing; and the service accompanying the product. Products may be described in terms of their features and benefits. Features are product characteristics that deliver benefits; we buy products for their benefits. Ufone offers a large variety of cellular products and services. It specializes in providing connections to the customer and offers packages that enable them to utilize the services that are offered along with the different connection packages. Pakistan Telecommunication Mobile Limited (PTML) offers a combination of product and service. Before someone can become a Ufone customer they have to purchase a SIM card that confirms that a mobile connection has been given by this company. The SIM card is therefore the product that the company offers as it is tangible in nature. After the SIM is purchased a customer has a wide variety of packages to choose from along with the facility of paying before or after the use of Ufone services. 3.4 Pricing Strategy Price can be defined as every want satisfying attribute a consumer receives in making an exchange, including psychological as well as physical benefits. At Ufone, Prices is primarily based on the cost and Tax to be paid to the Government is added to the cost of the products. Ufone also make sure that the prices are in line with that of the competitors and also fit in with the overall marketing mix as well as consistent with the image of the Ufone. 3.5 Distribution Strategy One of the elements of Neil H.Borden's Marketing Mix is Place. Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer. There are six basic 'channel' decisions: 27

Do we use direct or indirect channels? (e.g. 'direct' to a consumer, 'indirect' via a wholesaler) Single or multiple channels Cumulative length of the multiple channels Types of intermediary (Usually one Intermediary i.e. Authorized Agent.) Number of intermediaries at each level infighting between local distributors)

Which companies as intermediaries to avoid 'intra-channel conflict' (i.e. Ufone is using both direct channels of distribution like its sales offices in different cities of Pakistan and through indirect Channels like its Authorized dealers. Major Regional Offices of Ufone in Pakistan are listed below. 3.6 Authorized Dealers Following are the authorized dealers in different areas of the country. Peshawar Dealers Asim Bukhari Opposite G.P.O. sadder Road, Peshawar. Haroon Khan Near ice berg, university Road Peshawar Lahore Dealers Ahmad Saeed. McLeod Road, Lahore. Tanveer Aslam E-105/1-B,AdjacentMCB, MainBoulevard,Defense, Lahore. Islamabad Dealers: Tahir Qayyum Khan Blue Area, Islamabad. F-10 Markaz, Islamabad. Karachi Dealers Abdus Samad Mun 28

12-c, sea breeze center, block 5, F-1/17, Kehkashan Clifton, Karachi. M. Farouk Shop No.31-32, Gillani Center, M.A.Jinnah road, Karachi. Kohat Dealer Mr. Basit Imtiaz. Cantt. Market, Hangu Road, Kohat Cantt. 3.7 Ufone Offices Ufone Head Office 13-B, F-7 Markaz, Islamabad. Ph: +92-51-111-333-100 Ufone Rawalpindi Office Modern Radio Building, Bank Road, Sadder, Rawalpindi. Ufone Lahore Office 15S, Gulberg2, Lahore. 8 Ameen Chambers, Davis Road, Lahore. Ufone Karachi Offices D-16, Block D, Near Pizza Hut, North Nazimabad, Karachi. Plot BC-11, Block 9, Mehmood Center, Clifton, Karachi. Farah Center, Block 1B opposite Urdu Science College, Karachi. Ufone Peshawar Office I-6, Faker-e-Alam Road, Peshawar. 3.7.1 Inventory Level at different Outlets The level of inventory at any outlet is up to the dealer and it is he, who has to decide about the number of connections present in the office. This decision is based on a number of factors such as sales, location, needs, wants and demands of the customers. Normally when Company offers its connections, these are very easily available at its offices and authorized dealers. Customer can get those connections simply filling a form and attaching the required documents. 29

3.8 Promotional strategy It is used to facilitate exchanges by informing one or more groups of people about an organization and its products. Promotion includes such areas as sales management; personal selling; advertising sales promotional programs and all other forms of marketing communications. Promotions include any technique that persuasively communicates favorable information about a seller's product to potential buyers; includes advertising, personal selling, sales promotion, and public relations.

3.9 Promotional Budget 3.9.1 Total projected budget There was an allocated of Rs.100 million for promotional mix of Ufone for the year 2007. Ufone basically emphasize on Advertisement on advertisement, which is the major tool of promotional Mix. There was also budget allocated for Sale promotion and Public Relation. 3.10 Budget Allocation 3.10.1 Advertisement Ufone allocated 80% of total promotional mix budget to advertisement that is Rs.800 millions and in advertising Ufone strongly emphasized on electronic and Print Media because these are the major source of advertising and also source of information for the major population and for the rest. Ufone also rely on Billboard.

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3.10.2 a. Electronic Media Out of the advertising budgeting Ufone will give 63% to electronic media i.e. Rs.63 Million. There are two source of major advertising these are TV and Radio which are used by Ufone. T.V: On television Ufone show its ads on prime time because Ufone is for middle and lower middle class and most of the lower middle class people watch the T.V in prime time. Radio: On radio Ufone sponsor many program. 3.10.3 b. Print Media: Out of total advertising budget we will allocate 27% i.e. 270 million to print media. 3.10.4 c. Billboards: Out of total advertising budget Ufone allocated about 10% i.e. 100 million. 3.11 Sales Promotion Out of total promotional budget, Ufone allocate 110 millions - i.e. 11% of total promotional Budget. 3.12 Public Relationing Out of total promotional Budget, Ufone allocated 100 million for public relationing, which is 10% of the total budget. That budget is basically used for the purpose of public relationing through sponsorships such as different dramatics clubs, sports club, sponsoring the different events etc. 3.13 Segmentation and Positioning 3.13.1 Geographic Geographically, Ufone is targeting the big cities, town and important highways and roads like the GT Road, Super Highway & Motorway etc. Covering over 2805 key destinations Ufone is the ultimate means to stay connected wherever your business takes you allowing seamless roaming through the network providing the best nationwide coverage. 3.13.2 Demographic 31

Ufone is mainly focusing lower middle class families. They are offering their services to people relating to all races and nationality living in Pakistan. Professional psychographically, Ufone is targeting middle and lower upper Class. Ufone is in access of all people like Taxi Drivers, Shop Keepers, and Sweepers etc. 3.13.3 Behavioral Benefits The customers of Ufone are very loyal. Although the Ufone is new entrant in cellular Operations, but it has gained thousands of customers. They want to purchase its connections and they are satisfied with the services provided by the Ufone. Its not creating any distinction between rich and poor because everyone is using it. 3.13.4 Coverage Ufone has always believed in a solid commitment to growth, security and reliability. Therefore, Ufone has always balanced its expansion efforts and quality of service. With a total current investment of $400 Million, Ufone covers over 2805 key destinations in the country, providing the ultimate means to stay connected wherever your business takes you allowing seamless roaming through the network providing the best nationwide coverage. Ufone, being one of the leading cellular service provider has recently launched its service in many new cities. Keeping up with its pace it is rapidly expanding its network. Ufone keeps on adding new cities with same superior network that continues to expand. Ufone covers all major cities of Pakistan now you can enjoy comprehensive coverage in areas like the GT Road, Super Highway & Motorway etc. So wherever you are in Pakistan, Ufone keeps you connected. Ufone provides International Roaming facility with more than 150 international operators across 79 countries. Ufone has GPRS roaming agreements with several international operators and also provides prepaid roaming facility to selective destinations. 3.14 Customer Service Ufone is proud to have an efficient and friendly customer service through 21 companyowned Sales & Customer Service Centers and nearly 650 franchisees across the 32

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. 3.15 Key Accomplishments Ufone has always played a pivotal role in the development of the cellular market in Pakistan. For the most part, it has been a step ahead in introducing innovative products to the market. Ufone was a pioneer in launching the GPRS services and Multi-media Messaging Service (MMS) in Pakistan, and lead the way in introducing GPRS international roaming and prepaid international roaming for these services in the Pakistani market. 3.16 Success and Failure of different product of organizations As explained above Ufone has a long product line including postpaid and prepaid connections. Ufone is not only organization offering such type of services there are many like Telenor, Warid and Mobilink etc. But the success rate of Ufone is much more than others. E-g Ufone is offering special packages of SMS and also special offers on call. The rates are low and acceptable. The reason behind this is that the advertising strategies used by Ufone are better than its competitors. On TV their Ads are more and good as compare to competitors. This will create awareness of the brand in the mind of the customers. Customers will prefer to use the SIM because Ufone is offering low rates and good service as well. Ufone is still going well it is second best cellular company in the country but some challenges that it is facing is from Mobil ink (competitor) that it has more users then Ufone due older company than Ufone. 3.17 Critical analysis of the theoretical concepts relating to practical experiences Internship in Ufone was a very nice experience. Actually it is all about the experience which everyone wants to get and which will be helpful in future. During the internship in marketing department the management rotate the internee in three sub departments ie advertising, branding and value added services.

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In advertising department one has to communicate with other departments and also with advertising agencies. Tell them the recent packages that Ufone is offering and also give them the needed information. Internee can also play a role in advertising agencies. Advertising takes place through electronic media, print media etc. The second sub department is of branding. As mentioned above Ufone is offering other services i-e postpaid and prepaid services. But 99% branding is done on prepaid and only 1% to post paid. Ufone pre paid services are generating much revenue than post paid. 3.18 Major competitors of the organization 3.18.1 Competitors The telecommunication sector of Pakistan is growing with new competitors entering into the scene. This increased level of competition has changed the scenario which used to exist a few years back. The dominant players in the market are fighting on the basis of prices and value added services. It is hard not to notice the mobile phone advertising campaigns in Pakistan. The mobile phone and services advertisements are in the media, on billboards and everywhere else imaginable. The competition among the mobile phone companies is driving this trend of intense advertising campaigns. The marketing department of every major mobile phone company is trying their best to get attention with catchy phrases, jingles by pop artists and attractive models to represent their products and services. The quality and aggressiveness of the advertising campaigns indicates the level of effort to gain market share. The ads are vibrant and colorful, conveying a sense of excitement and empowerment. The pretty picture these ads paint is separated from the real world where poor cellular service has led to PTA to announce that punitive action will be taken if problems persist (more at the end of this previous post). According to telecom analysts entrance of Telenor and Warid intensified competition in Pakistan mobile market the result that significantly. Warid and Both Mobilink and Ufone were slow to respond with Pakistans mobile market. 34

Telenor made substantial gains in market share. This shows the growth potential of

An example of increased competition in Pakistan is SMS. When Mobilink introduced Octane, Telenor reciprocated with Djuice with even lower rates for text. Telenor also introduced 30 second billing which in my opinion ended up confusing many consumers. Telenor has also introduced EDGE data services which should contribute to better revenues and it may lead the way to 3G services in Pakistan. Ufone has the following major competitors:

The minor competitor on the other hand is:

3.18.2 Competitive strategy: Ufones competitive strategies are Customer intimacy and Differentiation. Ufone aims at fore passing Mobilink in its competitive race. 3.19 Future prospects of the organization 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 35

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

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CHAPTER -4
4.1 What is a SWOT Analysis? A SWOT (Strengths, Weaknesses, Opportunities, and Threats) is a tool used to provide a general or detailed snapshot of a company's health. SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. By identifying the organization's strengths, weaknesses, opportunities and threats, managers can formulate strategies in such a way so that the strengths and opportunities can be utilized and internal weaknesses and environmental threats can be minimized. To fulfill its mission, Ufone should capitalize on its key strengths, overcome or alleviate its major weaknesses, avoid significant threats, and take advantage of the most promising opportunities 4.2 Why use a SWOT Analysis? Analysis In any business, it is imperative that the business be its own worst critic. A SWOT analysis forces an objective analysis of a company's position and the marketplace. Simultaneously, an effective SWOT analysis will help determine in which areas a company is succeeding, allowing it to allocate resources in such a way as to maintain any dominant positions it may have 4.3 SWOT Analysis of Ufone 4.3.1 Strengths Following are the vital strengths of Ufone: Strong Brand name Exponential growth Favorable policies

Second largest cellular company in Pakistan

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 Access to infrastructure-network and satellite links. Ufone is an acknowledged as market leader of all the companies of its kind. Government backing a lot when come to a new entrance to the industry as it has done in Ufone case They have the latest technology as compared to any other mobile company As government is backing them they can get as many fund as required by them to introduce the new technology Marketing intelligence teams: Ufone has got marketing intelligence teams which continuously monitor the strategies adopted by the competitors and devise the strategies for Ufone accordingly so that Ufone can keep up with the ever changing market place. Unlocked Blackberries: Ufone has recently launched its blackberry and it is the second cellular service providers after Mobilink to offer blackberries however Ufone has the edge of offering unlocked Blackberry which enables the clients to use any network sim on their Blackberry. Also, the Ufone Blackberry is less expensive. Number Portability: Ufone has the highest number of intake in terms of the customers shifting from other services providing number portability facility. Corporate Clients: Corporate clients help Ufone earn huge revenue therefore they are a major strength for the company. Also, the mobile number portability has enables Ufone to add to new clients to its existing corporate clients such as Air Blue and Fauji Fertilizers which shows the credibility and trust of clients in Ufone services and packages. Associations with MCB and ABN-AMRO The association of Ufone with MCB and ABN-AMRO help Ufone to facilitate its customers and gain a competitive edge. The company has hired well qualified and able employees in all its departments. The services of Ufone are wide spread such that you can see many small outlets in every market area. 38

4.3.2 Weaknesses Following weaknesses are identified in Ufone: Low revenue per user Ufone has less professionalism within the organizational members. Large organization structure Ufone has pathetic billing system for post paid connections Less concentration on post- paid connections. Less numbers of Customer care units and Franchises in the country. Signals problems Reactive Approach Ufone offers a number of packages however during its entire history the company has usually followed the policy of imitating other companies packages and adding a little bit of variation instead of coming up with entirely different packages. Internal politics At Ufone many cases of leg pulling and unsatisfactory working environment are reported. 4.3.3 Opportunities Ufone has the following opportunities: Network all around Pakistan Adaptation of newest technology. This company has faster market growth. Ufone has opportunity that it is pioneer in southern Punjab where it can promote itself and become market leader Reduced Prices: Currently the rates offered by Ufone are higher than some of its competitors and the hidden charges make the packages expensive so Ufone can work on its prices. 39

New Packages: Apart from the current packages offered by Ufone, a number of new packages with different features may be floated. Besides they can give new offers such as credit transfer between different services e.g. Ufone to Telenor or Ufone to Mobilink etc.

Research and development: There is a possibility that Ufone may invest in research and come up with some new technology that is not being offered by the current cellular service providers of Pakistan.

Diversification: With the advancements in technology, Ufone has the opportunity of diversifying its operations and entering intro areas such as internet services etc.

4.3.4 Threats Following are some of the threats High tax rates Competition Increase in imported equipment cost New Entrants: With the current market conditions and the dynamicity if the environment the opportunity for more and more companies to enter into the telecom industry has increased. The entry of these new companies can pose a threat to Ufone since they might lose their valuable customers to these companies. Counter Attacks: In all industries including telecom the rate at which people switch from one job to another is very high and this opens the room for counter attacks as people who switch from one company to another have an insight into their plans and they often leak these plans to the company to which they switch. Reduced Market Share: With the entry of new companies and the improvements of the current services, the choices available to customers are innumerable therefore it is very difficult to retain customers. This fact along with Telenor emerging in telecom scene 40

poses a threat to the market share and position of Ufone. Currently at 39.2% and second in the market, Ufone might move to number three. Changing Trends in Industry: With the changing environment and the increased level of competition, the trend of mergers and acquisitions is rising. It might be possible that the weak players in the cellular service industry merge with the strong players which will again pose threat to the existence of Ufone until and unless an aggressive approach is undertaken.

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CHAPTER -5
CONCLUSION AND RECOMMENDATIONS 5.1 Conclusion In light of my findings from a six weeks internship at Ufone some conclusions I have drawn are as follows: Ufone was the second mover in the telecom industry of Pakistan after Mobilink but is one of most successful cellular companies of Pakistan. Ufone is not a safe player in market. It is penetrating in market by taking risk and aggressively promoting and advertising itself. Ufone is not only surviving but growing at exceptional rate and holds third largest market shares and is seeking to become market leader any way possible. Fierce competition leads to innovation in industry and when competition is base on the pricing and quality, than the companies have to focus on the quality, innovation and low cost. People enjoy watching, discussing and following Ufone Ads the most and it is the biggest achievement of Ufone in recent times. It has a strong market presence and spends heavily on advertising by introducing new innovative ideas to implement that match its products. 5.2 Recommendations There are some of the recommendations for Ufone which can be used to improve its performance and to achieve its goals. 5.2.1 Recommendations for Ufone Ufone must decide that it has right number of people at right places to make the changes. Ufone should use human resource strategies which can be powerful tools for signaling cultural change. Ufone should look at all complaints about the service as an opportunity to improve. Should ensure that staffs feel that they are important part of the success. Have fun team building days as well as formal meetings. Do things regularly to improve work place. 42

 Establish an environment where great service is recognized and rewarded and poor service is challenged and rectified. Listen to the customers for feed back. Make strategic alliances with other cellular service providers in the country. It can enhances its capabilities. Notes 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.

Ufone has been a highly successful venture, touching 100,000 subscribers in less than four months of operation.
The current subscription break up is 80 percent prepaid and 20 percent postpaid.

With fastest expanding coverage, unmatched product leadership, and consistent focus on customers, Ufone has emerged to be the most prominent player in the market in the short span of its operations.
Ufone use the WAP technology. WAP is designed for handheld devices like mobile phones and PDAs etc. Some limitations of this equipment require special type of content. These limitations include low-resolution screens, smaller displays, and lack of mouse or keyboard. User can therefore access only WAP enabled (wml) pages on the Internet. Ufone employs about 3500 people directly and thousands indirectly through franchises all over the country. The Ufone website URL for online recruitment is :http://ufone.com/careers.aspx

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REFERENCES Mahmood, K (2005), Multipurpose community telecenters for rural development in Pakistan ", Emerald Group Publishing Limited, ISSN 0264-0473, . Miles, M. B. & Huberman, A.M. (1994). Qualitative Data Analysis: An Expanded Source Book. London, Sage. Pakistan Ministry of Finance (2003), Economic survey, 2002-2003, available at: www.finance.gov.pk/survey/home.htm (accessed on July 10th) Strauss, A. & Corbin, J. (1998). Basics of Qualitative Research: Techniques and Procedures for Developing Grounded Theory. London, Sage. scribd.com (accessed on july 22nd) www.ufone.com(Accessed on 13th & 14th July) http://www.pta.gov.pk/ (Accessed on July 18th) www.wikipedia.com (accessed on July 20th)

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