Company profile:

Ufone GSM is a Pakistani GSM cellular service provider. It is one of six GSM Mobile
companies in Pakistan and is a subsidiary of Pakistan Telecommunication Company. It has a
subscriber base of 20.05 million as of July 2009. It is currently owned by United Arab Emirates
based Etisalat. PTML is a wholly owned subsidiary of PTCL. Established to operate cellular
telephony. The company commenced its operations, under the brand name of Ufone from
Islamabad on January 29 2001.
During the year, as a consequence of PTCL’s privatization, 26% of its
shares were acquired by Emirates Telecommunication Corporation (Etisalat). Being part of
PTCL, the management of Ufone has also been handed over to Etisalat. During the year July
2005 to June 2006, 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 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.
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.

Mission statement:

“Ufone, it’s all about U! We are where you want to be. We aim to provide you with wider
coverage, superior connectivity, clear signals and voice quality. Wherever you are, Ufone keeps
you connected.”

Vision statement:

“To be the leading telecommunication service provider in Pakistan by offering innovate

communication solutions for our customers while exceeding shareholders value & employee
expectations.”
Services of Ufone:
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 of Ufone:

Ufone is offering the following Mobile Products:-
 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

Ufone’s Strategic position:

Market segmentation
Cellular service market is a diverse set of people. Ufone as well as other cellular service
companies segment their market on four bases:- economy, age, gender & occupation.
Economy : Upper class, middle class, socio-economic class, lower class
Age : Teenagers, youngsters, middle age, aged people
Gender : Male & Female
Occupation : Corporate class, business class, working class etc
 Target Market
Cellular phones are the technology of new era, the 21st century. These cellular phones are the
main focus of our youngsters. All the cellular companies are targeting the youth one way or
other. Ufone is no longer a follower in this race. Its main focus is “THE YOUTH” of Pakistan
which is its Target Market.

Target marketing strategy:

Ufone has always been targeting Youth Market by using young brand endorsers or ambassadors.
It always brings such packages and offers that precisely meet the needs of our young people. No
doubt it has also launched packages, brands and offers for working people, business class, ladies
and aged ones. Ufone seeks to target masses in the long run.

Positioning
Positioning is the process of creating an image of company’s brand in the mind of market.
Companies position themselves emotionally, functionally or on the basis of brand quality. Ufone
is still a market challenger in comparison to market leader MOBILINK. It is still to reach to the
top most position of cellular companies. So Ufone positions itself on the basis of its services.

Ufone’s former Positioning Statement:

Ufone’s new Positioning Statement:
“Ufone tum hi toh ho! “
Or
“It’s All About U”

Ufone’s positioning strategy:

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” on the basis of services it is providing and its lowest call rates. It makes them
believe that it satisfies the needs of everyone (viz all classes, age & genders). It tells them that
Ufone is there when anybody needs it. The brand name UFONE itself is a positioning statement.

Differentiating
In these days of intense competition marketers find it hard to differentiate their services from
those of competitors. Now customer care about only price. An unsatisfied customer will
immediately go for brand switching. Thus leaving a customer unsatisfied and not meeting his/her
demands is out of question for marketers.

Differentiation Strategy :
Ufone has always strategized in satisfying the demands of its customers. In doing so it has been
successful in differentiating itself in terms of:-
 Price
 Quality service
 Technology
 Market Orientation
Total Market Orientation is about understanding and meeting customer’s expressed and latent
needs.

Orientation Strategy :
Ufone has always considered the ever growing needs of low call rates and quality service. It has
provided its customers their needed packages and has introduced such brands & packages that
meet customer’s latent needs as well. For example 5 ka 15 is result of a latent need of women of
our society. They plan to make a short call but it becomes a long one unintentionally due to
gossips and chit chats .

Critical success factors in organization:-

Dynamic and goal-oriented project managers and participants with documented project
competence constitute an essential Competitive factor for ufone. The extent and significance of
project work compel us to ensure continuous development of those of our people managing
projects or work in projects. Consequently, ufone In cooperation with Métiers Project
Management Academy, have established Ufone’s Joint Training Program in Project
Management. Ufone’s Joint Training Program in Project Management is based on the ufone
project model and has been developed in close cooperation with the various business units in
ufone. The program includes seven intensive course modules guiding you through the project
management competence areas until you have received Ufone’s internal certification. Through
Ufone’s Joint Program in Project Management you can obtain up to 30 credit points - approved
by Oslo University College.
Projects and project management are essential in Ufone’s business
operations. Efficient implementation of the right projects shall contribute to the strengthening of
our position as a leading player within our business areas. To achieve this objective, we depend
upon people with solid general and practical knowledge within project management including a
thorough knowledge of Ufone’s project model. Consequently, through Ufone’s Joint Training
Program in Project Management you can be certified as an”ufone Project Professional”. Ufone’s
Joint Program in Project Management is based on the Project
Management Institute’s internationally recognized standard for project management.

Sustainable Competitive advantage:

It’s an advantage over competitors gained by offering consumers greater value than competitor’s
offer. Ufone strategies to gain more and more competitive advantages. It also uses these
competitive advantages well enough for its promotion. Currently Ufone is enjoying the following
competitive advantages:-

 Lowest overall call rates

 Value added Services (VAS)
 Call block service
  Corporate color

Micro environment analysis:

Micro environmental analysis involves factors of resources availability and usage that impact
individuals and business. As a company operator, understanding about micro factors helps in
business planning and preparation of strategy. Five micro environmental factors that effect
business all are as below:
 Customers
 Competitors
 Media
 Employees
 Marketing

Customer Relationship:
With 28 million mobile users in Pakistan, Ufone is having a subscriber base of around 7 million.
Ufone is showing a remarkable growth rate. It is maintaining a healthy customer relationship
through its “customer service centers” and “call centers”. Its department of “Customer
Operations” is specially designed for maintaining Customer Relationships.

Customer Relationship Strategy:

Ufone strategize to build and maintain strong customer relationships in order to build long-term
customer loyalty and to capture customer lifetime value. In this context Ufone has been training
aaits internees and permanent employees in the fine art of interacting with customers. It is also
strategiazing to offer gifts & rewards for its long-term customers in its PostPay to match the
wonderful customer relationship strategy of INDIGO.

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 four direct competitors:-
Ufone also considers the following as its competitors:-
 ZONG (former PAKTEL)
 PTCL WIRELESS
 Wateen
 WorldCall

Competitive strategy:
Ufone’s competitive strategies are Customer intimacy and Differentiation. Ufone aims at fore
passing Mobilink in its competitive race.

All above strategies are really important for ufone strategic positioning
in market against its competitors because the strategy determines the contents and the character
of the organization's activities.

Media:
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

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 paaainted rickshaws

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 Mikaal Hassan and Junoon, it named UROCK.

Ad shoots: The ads of Ufone are shot mostly within Pakistan. But the Post Pay 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”.

Marketing:
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.
Advertising reach and frequency:
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.
Emplyees:
Ufone is basically equal employment opportunity organization. Almost 70% of its employees are
male and 30% are female. The job description of each and every employee is predefined.
Performance appraisal is done on annual basis. Average age of Ufone employee is 32 years. This
shows that they prefer young and energetic people for their middle and lower level management.
High profile, well experienced persons are considered for top level management. Average Salary
is 12000 for an Ufone employee.

 There are about 150 employees who are working in the ufone Head Office and 2500
employees serving nationwide. All of them are very devoted as they are given wonderful
learning environment to work, pay offered to them is also very attractive and chance of
progress motivates them to work more. The job analysis is done on targets assigned and
daily routines. The employees are indeed very satisfied and motivated.
 Planning provides a guideline to accomplish an activity. At Ufone the HR team plans
everything so that the outcomes and results can be perceived before the plan is actually
implements. This makes the planning more accurate and efficient; it also saves time and
money.

Predictions about future:

 Banks will become phone companies and telecom companies will become banks. Mobile
payment systems, micro payments, mobile phone credit card transactions and loans.
Economic impact of remittances from foreign workers using SMS credit to avoid foreign
exchange transaction costs. How biometrics fingerprint technology will allow large
mobile phone payments. Commissions and interest charges on loans. Impact of revenues
from American Express, Visa, Delta, Access, MasterCard moving to mobile phone
transactions.
 It is forecasts that by the end of 2010, about 6 percent of all mobile subscribers in
Pakistan will have a 3G handset. This, however, remains very much in the hands of the
PTA, the operators themselves and, of course, Pakistan’s consumers. The Pakistani
customer will demand Video calls technology, High speed internet from their mobile
operator.
Future initiative:

Ufone can surprise its competitors by introducing “Ufone kiosk”. These will be ATM like
machines and that will give 24-hour service to Ufone subscribers to load the balance just like
they take money from ATM. To remain competitive in 3G sector Ufone will offer cheap video
call rates and high area coverage of 3G services more over Ufone is already providing high
aspeed internet to its costumer at a very low rates. Ufone is also planning to give more speed to
its internet USB device (U-EDGE).

Specification of the new package:

“All calls to ANY network at only Rs.1.20 per minute!”
Stop cutting your calls short because Ufone has brought you Tension Free Package. Make calls
without any tension or stress about inter-network charges because now all your calls cost only
Rs.1.20 per minute to Ufone or any other network. Subscribe to the Tension Free Package and
talk day or night at the lowest flat rate to any network!
“Get rid of all your tensions by calling with Tension Free package”