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Project MM Ufone
Project MM Ufone
HISTORY:
During the year, 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 3475 locations and across all major highways of the country. Ufones operational performance has been very encouraging. Huawei wins USD 550 million GSM (Global System Mobile) expansion contract from Pakistan's Ufone. Huawei future-oriented EnerG GSM Solution to cover over 1,500 locations in Pakistan ISLAMABAD 26 September 2006 Huawei Technologies Co Ltd. ("Huawei"), a leader in providing next generation telecommunications network solutions for operators around the world, today announced that it has won a USD 550 million GSM contract to expand the wireless network of Ufone, one of Pakistan's leading telecom service provider.
To become the best cellular communication option available in the country for U
Servi ces:
Trivia Quiz
U loan U Chat
Products:
And
SIMs of Ufone are manufactured abroad (Malaysia, Korea, China, Singapore) and imported in Pakistan. Imported SIMs are stored in the head office (Islamabad).As it has no warehouses; it has only franchises and sales & customer care service centers for distribution. Ufone clearly identifies the needs of customers and provides them the packages which are according to the needs and demands of customers. The major factor which is very imported that Ufone has no hidden tariff charges .They get confidence of their customers
8 They send their the regional offices of different cities and the regional office further distribute to franchises and retail shops with the help of distributors. Ufone subsidiary of PTCL was established to provide cellular services across Pakistan. Ufone is currently providing quality services across Pakistan. Ufone currently lowered their calling rates across other networks as low as 2.30/min which is currently the cheapest prepaid rates available in the market. Ufone with the backend support of PTCL always provides quality services to its subscribers. Ufone GRPS services are the best available in the market Ufone has a good customer support they are always cooperative and listen to your queries and solve them as early as possible. Internet Bill payment is the special feature offered by Ufone for the first time in Pakistan they are always ahead from others in providing quality services. Web2SMS chat Mobile banking Pay via SMS is the best features offered by Ufone. With premium services of Ufone like picture messages, ring tones, operator logos, and colored wallpapers and animated greetings added value to Ufone services. Ufone claims to have 3 million subscribers and still growing. Ufone is one of the best cellular company in Pakistan with reliable network and coverage to over 100 key cities and prominent highways. Ufone has very quit and peaceful environment. In Ufone head office every thing is properly departmentalize. Every person in the office is provided with every facility. Ufone office has 100 employees that are currently operating in the office. They are provided with every benefit like heath, post job benefits. Ufone is using latest technology in their server. Stream lines are used to connect the calls. Each streamline connects 30 calls .PTCL charges for one stream line is 10,00000 per month from the other cellular companies, however Ufone is charged only minimum amount and the streamline are provided more than its requirement that, why stream lines are not crowded so voice quality is better. GSM technology is used for this purpose contact is made with Huawei under 550 dollars .further now its 25% shares are taken over by emirates.
SCANNING:
The country forces affecting the environment e.g. political forces, Economic forces, Socio-cultural forces, and Technological forces. These are known as PEST factors.
Political Factors:
Political environment of Pakistan is stable in the current situation and country is doing excellent on economic front. Environment is investor friendly telecommunication sector is under de-regulation. Political constraints affect the PTA rules and regulations, and PTA rules and regulations affect the Ufone performance. Before WTO implementation government already took steps in de-regulation of telecommunication sector.
Economic Factors:
Changes in the government sales tax affect the brand.
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Per
capita income decreased as compared to previous years. Inflation is controlling by state bank but unemployment rate is going up and up with the increase of level of poverty.
Socio-Cultural Factors:
As Ufone is the Pakistani Company and it has no social and cultural conflict. Therefore some changes are might occur in every Culture. Cultural changes affect the Organization and its Brands. Changes in the behaviors and attitude of the people affect the brand. Changes in the Life style of the people effect the brand such as attracted toward foreign telecom companies.
Technological Factors:
Technological changes affect the company. Ufone have technology with which they can compete in the Pakistan and now Ufone is investing in its infrastructure to not only expand but also to upgrade their existing structure. Some change occur that effect the brand.
Technological
changes such as CDMA. Changes in the technology system. Changes in the virtual networking like frequencies matters.
MARKET ANALYSIS:
Pakistan has become one of the fastest growing mobile markets among the emerging telecom markets. This year the sector grew by 80% whereas average growth rate in last 4 years is more than 100%. Total subscriber base stands at 82.5million (march 2008) whereas it was 34.5 million in 2006, 12.7 million in 2005 and in April 2008 the Ufone subscribers were 17,539,457. This tremendous growth is attributed to many internal and external factors starting from deregulation down to implementation of mobile number portability. The government and regulator are trying their best to facilitate the sector and making every effort to provide mobile access to every corner of the country.
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Out of total population of Pakistan almost 90% of population is covered with mobile networks. In addition to fixed and WLL services to this percentage. All operators are increasing their networks to number of cities/towns/villages. Up to December 2007 more than 7,011 cities/towns and villages have mobile networks by one or all operators.
MARKET SHARE:
Telecommunication of Pakistan is growing industry in last few 5 years. Tele-density in country has jumped a mere 6% to 57% (Mar-08) in few years. Pakistan telecom has emerged as the fastest growing sector in the world where the infrastructure and subscriber growth pattern are unmatched all across the region. On average, 3 million subscribers and still growing Ufone is the second market leader in telecom sector, the market shares of Ufone are 21% and it is still on growth stage.
COMPETITORS ANALYSIS:
Major competitors:
These three companies are the direct competitors of Ufone. But MOBILINK is the major competitor of Ufone.
Geographic Rural & Urban Rural & Urban Rural & Urban Rural & Urban
Gender Male & Female Male & Female Male & Female Male & Female
Basic competition of Ufone and Mobilink is with Price, Quality and Delivery to the Customers.
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Mobilink:
Mobilink enter into the market in 1994 as a market leader both in terms of growth as well as having the largest customer subscriber of over 30million and growing (31,935,624 in April 2008)
Telenor:
The years of 1855 to 1920 was a pioneering period in the history of Norwegian telecommunications. Manual mobile telephony services were introduced in Norway in 1966; Telenor now has mobile operations in 12 markets around the world. Telenor started its business in Pakistan in 2006. Telenor has 17,323,169 subscribers in April 2008.
Warid:
Warid Telecom International Ltd. is a GSM-based cellular operator in Bangladesh. Warid officially launched their commercial services in Bangladesh on the 10th of May, 2007. On 19th July, 2007 Warid Telecom announced in major dailies of having achieved one million subscribers in the first of 70 days of operation (14,760,593 subscribers in April 2008).
ZOng:
ZONG is the first International brand of China Mobile being launched in Pakistan. It is meant to empower and liberate the people of Pakistan. Subscribers of ZOng in April 2008 were 3,146,763.
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Market share:
15
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Barrier to entry: There are low entry barrier in the telecom industry. Last four to five years many multinational companies enter in to the industry that shows that entry barrier are low. The entry barrier that probably ever company has to face is setup cost, capital cost etc Buyer power: Buyer power is low as compared because company offers a non-negotiable price to its buyer. Buyers are force to buy the price offered by company Supplier power: Supplier power is low as there are no suppliers of this brand the material is imported out side the country so supplier power does not exist in this concern. Competitive rivalry: Overview of last five to four years indicates that many companies enter in to the industry so competitive rivalry is high in the industry as ZOng, Telenor and Warid introduction and competing on prices and coverage. Threat of substitute: Always there is a threat of substitute for the mobile telecom as PTCL and other v wireless are in the industry. Also there are substitute like dialing cards PCO, Consumer may switch from Mobile to other substitute so threat for substitute is high in the industry.
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National company. Subsidiary of PTCL. Use of fiber optic technology. Stream line benefit. More customer focus. Knowledge about country culture. Many product lines. Broad market coverage. R & D skills and leadership. Increase in customer Good will. Brand name Reputation (Ufone Tum He Tou Ho). Appropriate management style
Weaknesses:
Low market share as compare to competitor (Mobilink). No ability to manage strategic change. No availability of Call diversification. Inadequate human resources as compare to competitor (Mobilink). Inadequate information system as compare to competitor (Mobilink).
Opportunities:
Growth in market.
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Expand core business. Widen new market segments. Extend cost or differentiation advantage (contract with Huawei). Apply brand name capital in new areas. Seek fast market growth. Apply R & D skills in new areas. Increase in Large number of user.
Threats:
Price competition. Change in consumer taste. Increase in domestic and foreign competition. Change in demographic factors. Increase in rivalry among competitors. Entrance of new competitors. Unstable political environment.
BUYER BEHAVIOUR:
Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A consumer, making a purchase decision will be affected by the following three factors: 1. Personal 2. Psychological 3. Social HIGH INVOLVEMENT LOW INVOLVEMENT
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As consumer behavior is always variety seeking in every product. They always want change to have better taste or service. As in telecom industry there are a number of companies who are trying to serve people better than their competitors. A little change in the price and network coverage may shift the people trend. In this telecom sector people are Varity seeking. New packages may shift the people frequency to other network.
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what the Needs needed for basic survival (food, shelter, sexual satisfaction). Need to feel safe within your environment. Need to feel Love, Friendship, and belongings (Ufone). Need for self respect, status, and recognition. Point of reaching
Safety
Social
Esteem
CELLULAR SUBSCRIBERS:
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The above graph shows the growth in the cellular subscriber. As in the year 2002-03 the subscribers are just 2.4%, but the tremendous increase comes in 2005-06 i.e. 34.5%. And now in 2008 it is up to 82.5% that shows the people trend towards telecom industry, and it is a better hope for the telecom industry that more subscribers will enter.
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MARKETING GOALS:
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Marketing goals of Ufone are set in terms of: Per month sales of Ufone prepaid Sims are 300 Sims. The approximate revenue is 84% of total sales. The after tax profit is of 53% of total sales approximately. The market share of Ufone is 21% and it is the Pakistans 2nd largest cellular company. Ufone has network coverage in more than 3475 locations and across all major highways of the country and provides International Roaming facility with more than 150 international operators across 79 countries. Ufone is continuously introducing new products; recently it has introduced the CDMA technology. The brand image is wholly depending on its positioning strategy that is ITS ALL ABOUT U. HIERARCHY OF ORGANIZATIONAL GOALS: Ufone is maximizing the shareholders wealth by increasing Return on Investment (ROI)
Market share is increasing due to improved brand management of existing products and launching new products and by exploiting new market opportunities.
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POSITIONING:
Others:
We care
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Say it all
26 Outgoing Call rates / Peak (7am - 10pm) Per Minute Outgoing Call rates / Off Peak (10pm -7am) Per Minute SMS Per 160 Characters 50 Paisa Re. 1/Re. 1/Rs. 1.50/min Rs. 2.50/min Rs. 2.50/min Rs. 2.50/min Rs. 2.50/min Rs. 2.50/min
27 Package 2 Package 3 Package 4 50 25 150 500 165 Unlimited 10 paisa 15 paisa Fair use policy 30 days 15 days 30 days
602
603
604
JAZZ
Jazz one Every Mobilink Number is your Friends & Family number Details Rates Calls to any Mobilink number Rs. 1.00 / minute Calls to all mobile networks & Landline numbers in Pakistan Rs. 1.60 / minute SMS (to Mobilink) Rs. 1.00 / SMS SMS (to other networks/landline) Rs. 1.50 / SMS
28 Jazz Budget Ab baat karo... aur karte he jao Details Rates Happy Hour to all Mobilink numbers Rs. 0.40 / 30 seconds Calls to 3 F&F Mobilink numbers Rs. 0.75 / 30 sec Calls to any Mobilink number Rs. 0.90 / 30 sec Calls to all mobile networks & Landline numbers in Pakistan Rs. 0.99 / 30 sec SMS (Jazz to Mobilink) Rs. 1.00 / SMS SMS (Jazz to other networks) Rs. 1.50 / SMS Bolo SMS Bolo SMS Ab bolo aur bhaijo! Details Rates Bolo SMS Outgoing (Mobilink) Rs. 2 + tax per 2 IVR minutes Bolo SMS Outgoing (Any other network) Rs. 3 + tax per 2 IVR minutes Bolo SMS Receiving directly Free Bolo SMS Receiving later R s. 1 + ta x p er 2I V R M
29 in ut es (f or M o bi li n k S u b sc ri b er s o nl y) .
Other competitors:
Warid:
Airtime
Airtime: Zem 1 Second Friends & Family 0.02 paisa Zem 30 Seconds Friends & Family 0.45 paisa Zem 60 Seconds Friends & Family 0.75 paisa Daily subscription of Rs.10 50 Free Minutes: between 9 a.m. and 5 p.m. daily charge of Rs 15 SMS: Zem 1 Second Friends & Family 0.50 paisa
30 Zem 30 Seconds Friends & Family 0.50 paisa Zem 60 Seconds Friends & Family 0.50 paisa
Telenor:
Talkshawk A1 package: Telenor to Telenor Rs. 1/min Telenor to other network Rs. 1.40/min Telenor to PTCL Rs. 1.40/min Har second: Friends and Family 3 paisa (per second) Telenor to Telenor 4 paisa (per second) Telenor to other network 5 paisa (per second) 30 second: To another Telenor number Rs. 0.75 To any other mobile network Rs. 0.95 Friends and Family Telenor-Telenor Rs. 0.45 Har minute: Friends and Family Telenor-Telenor Rs. 1/min Telenor to Telenor Rs. 2/min Telenor to other network Rs. 2/min
Djuice SMS Package Free unlimited SMS to any number Rs.70 SMS Chapar Pharr k No. of SMS Charges 90 15 285 40 650 80
ZOng:
Aik second package: paisa per second Free package: Make call for just 4 For the first time in Pakistan
31 you can make free calls for life Talk for an entire hour any hour, for only Rs.4.99and for the first time in Pakistan you can change the hour everyday
12 aany ka package:
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Asia Pacific Subscriber Number Increases from Sept 01 8,500,000 - Sept 02 North America 14,996,000 Caribbean & Europe, Middle Latin America East & Africa 7,295,000 925,000
Pricing: Rs. 300 Islamabad: limited franchise Product: plastic casing First time in Pakistan we are introducing CDMA technology. We are offering high prices as in this category people are trendy and more focused to new trends. At first we are launching it in Islamabad. Our packing of is more attractive than GSM packing. We are first time offering Boot let with this CDMA.
DISTRIBUTION:
Distribution channels of Ufone products and services are through Sales and Customer Service centers, Retailers and Franchise. For the expansion of market, Ufone can improve and can increase the number of its Customer Service Centers and Franchises. Current distribution channels are compatible with the positioning strategy, Ufone, Tum He Tou Ho.
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Customer care and service centers are: Ufone Customer Care Center
Sr# 1 2 3 4 5 6 7 Location Islamabad (Head Office) Rawalpindi (Commercial Center) Rawalpindi (Saddar) Peshawar Jhelum Gujranwala Address 13-B, F-7 Markaz, Jinnah Super, Islamabad Shehrbaz Business Center ,4-B Block, Commercial Center Bank Road, Saddar ,Rawalpindi I-E, Fakhar-e- Alam Road, Peshawar Cantt Opposite Wheat Depot, Main G.T. Road, Mujahidabad, Jhelum
Mandi,
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Lahore-Gulberg 8 Sialkot 9 10 Faisalabad 11 12 Quetta 13 14 Peshawar-Cantt Karachi-Shaheed e Millat Hyderabad 27-Chenab Market, Madina Town, Faisalabad Plot # B-15/9, Railway Employee Coperative Housing Society, Auto Bhan Road, Taluka Latifabad Hyderabad Ground Floor, Institute of Engineer Building, Quetta Zarghoon Road, Multan Plot # 2 Bungalow# 109, Aziz Shaheed Road, Sadder Bazar, Sialkot, Cantt. 32-Multan Arcade, Katchery Road, Multan 15, S, Gulberg II, Lahore
Plot # 02, Block # III, MSGPSCHS (Moalimabad), Shaheed-e-Millat Road, Near Medicare Clinic, Karachi. 1-E, Fakhar-e-Alam Road, Peshawar Cantt, Peshawar
International Coverage:
Ufone provides International Roaming facility with more than 150 international operators across 79 countries
COMMUNICATION:
Proper communication for the promotion of every product is necessary. The Ufone strategy is too aware its target as well its potential customers. The success of every brand or product is through communication by proper channel. Ufone communicates its products through Advertisements (News papers, T.V, Radio, and Billboards). Mobilink advertises through media for the purpose of knowledge. Ufone is conveying the message to its target audience is Its all about U. T.V: PTV, Geo, ATV, ARY Digital, Hum TV, AAJ, Indus. Ufone advertises its products 2 times after every hour for 3045 seconds.
35 News papers: Express, Jung, The News, Daily Times. Advertisements of Ufone products in News papers, maximum 16-17 times per month. Others: Internet, billboards.
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60% 50%
TV New spapers Internet Outdoor None
Mo
The above graph represents the media consumption patterns throughout the day. It reflects that 38% people start their day by reading the newspaper while 25% from TV and rest of the people spend their time on radio, internet and outdoor. We also find 19% of people who are not exposed to any medium in the morning. Newspaper readership patterns i.e. 38%, 12%, 4%, 4% and 1%, we find that people usually read the newspaper in the morning while only few of them read it at other times of the day. Then the whole day is dominated by TV as 23%, 42%, 57% and 26% of people are exposed to TV in afternoon, evening,
Af
te
rn
37 night and mid-night respectively. Where internet is the second most consumed medium by 18%, 16%, 19% and 14% of people while radio is taking only 10%, 8%, 7% and 8% of the listeners throughout the day. If we see media patterns at mid-night, then it is noticed that almost 48% of people are not using any medium at that time of night whereas 26% are exposed to TV and internet consumption settles at 14%. Approximate communication budget of Ufone is 2.1 million.
MARKET BUDGET:
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.
SALES FORECAST:
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Average price of SIMs Cities Prices (Rs.) Karachi 200 Islamabad 150 Lahore 130 Average Price/sim 160
Month January February March April May June July August September October November December Average total Sales Forecast for a Year
SIMs Sales per month 300 300 275 270 260 265 255 250 230 210 200 250 -------------------
Average Price per sim 160 160 160 160 160 160 160 160 160 160 160 160 ----------------------
Revenue (Rs.) 48000 48000 44000 43200 41600 42400 40800 40000 36800 33600 32000 40000
490400
PROBLEMS:
39 According to us we found some problems that are as under: Ufone has no international coverage, as compared to its major competitor. There is a great change in consumers tastes w.r.t. SMS packages, as consumers divert their attention to new packages launched by the competitors. Ufone has slow market growth as compared to Mobilink and Warid. The political instability is also a hurdle in the growth of Ufone. Competition of prices is increasing day by day.
RECOMMENDATIONS:
According to the above problems faced by Ufone there are some recommendations that should be followed by Ufone: As Ufone is the second largest cellular company in Pakistan with market share of 21%, it should change its polices to increase its share to become a successful cellular company internationally. They should have to develop their Human Resource policies to compete with the competitors. Ufone should introduce new packages and enhance its old packages, so that customers show their loyalty with the products of Ufone. They should maintain their prices as there is a stiff competition among the cellular companies. They should have to expand their foreign market. They should have to adopt new technology, as innovation is key to success. If there are any opportunities existing in the market, they must have to exploit them before their competitors do that. Ufone should have to maintain its polices to face the political instabilities.
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Note:
We have tried our best to provide you all the information relevant to the project, but some information related to company is confidential which the Management of Ufone denied to provide us.
CONCLUSION:
A key ingredient of the market plan is insightful, creative marketing strategies and plans that can guide marketing activities. Developing the right marketing strategy requires a blend of discipline and flexibility. Firms must stick to a strategy but must also find new ways to constantly improve it. Marketing plan also requires a clear understanding of how marketing works. Our group has done the project of developing marketing plan on the company Ufone of which 26% of shares were acquired by Emirates Telecommunication Corporation (Etisalat). Ufone is the Pakistans 2nd largest cellular company with a market share of 21% and its revenue and after-tax profit is 87% and 54% respectively, for the current year. It has network coverage in more than 3475 locations and across all major highways of the country. Its products are postpaid and prepay, and services includes Uwon, Utone, Awaz SMS, Trivia Quiz, and Quran on mobile, U Talk, Call Block Service. Etc. SIMs of Ufone are manufactured abroad (Malaysia, Korea, China, Singapore) and imported in Pakistan. Ufone is subsidiary of PTCL and is currently providing quality services across Pakistan. It has 3 million subscribers and still growing. This year the sector grew by 80% whereas average growth rate in last 4 years is more than 100%. In April 2008 the Ufone subscribers were 17,539,457.its major competitor is Mobilink, Telenor, Warid, and ZOng... Weaknesses should convert into strengths, and threats into opportunities. Consumer behavior is always variety seeking in every product. Price, Quality, New promotion, Coverage are the factors that influence the buyer to make purchase decision. Marketing goals are set in terms of sales, revenue, profits, market share, products and brand image. Segmentation of Ufone is on the basis of age, and it
41 targets the youth segment, Positioning strategy of Ufone is its all about U. Distribution channels of Ufone products and services are through Sales and Customer Service centers, Retailers and Franchise. Approximate sales forecast per year is 4.9 million. Ufones management has a great potential to take the company at no. 1 position in telecomm sector in Pakistan. We would like to end this Report in words of Mr. Kashef Maqbool (Assistant Manager Marketing, Islamabad): SUCCESS IS NOT SOME THING TO WAIT FOR, BUT SUCCESS IS SOMETHING TO WORK FOR