Marketing

Final Project

Submitted to

Mam Wajeeha
Haider
Group Members
Samreen Fatima

Hira Ahmed

Haris Ahmed Qureshi

Hassan Javed

Haider

Hassan Aslam
 Contents

1 Organization profile
2 Executive Summary
3 Mission of Ufone Prepaid
4 Strategic Planning Process
5 Marketing Environment
6 Managing Marketing Information
7 Consumer Behavior
8 Segmentation
9 Services and Branding Strategy
10 Product Life Cycle
11 Marketing Channels and Supply Chain
Management
12 Retailing And Whole Selling
13 Integrated Marketing Communication
Strategy
14 Advertising Sales Promotion And Public
Relations
15 Personal Selling And Direct Markrting
 ORGANIZATION’S PROFILE

Ufone 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.

The company has also been awarded a new License for providing cellular services in
Azad Jammu & Kashmir and the Northern Areas

SERVICES OFFERED BY UFONE

 Tension Free Package

 Super Ghanta Package

 Ufone Ghanta Package

 Ufone Life Plus

 60 Paisa Offer

 3 Minute Package

 U-Won
 U-Loan

 Panch Ka Pandra

 Public Demand

 U-circle

 U-Share

ABOUT THE PACKAGE WE SELECTED

UFONE LIFE :

With Ufone Life Plus Package, talk late night from 12 am (midnight) to 7
am for only Rs.2.50 per hour. To top it off, calls made on Saturday and
Sunday between 9 am to 5 pm cost only Rs.4.99 per hour.
 MARKETING RESEARCH

The systematic design, collection, analysis, and reporting of datarelevant to

specific marketing situation facing an organization.

Research method used by Ufone:-

In the marketing research plan Ufone uses descriptive research method for
identifying problems and for developing hypothesis. Company used the
survey approach i.e. by asking people questions about their preferences,
experience and buying behavior for collection of primary data .
And contact method are:

 Mail
 Telephone and texts to the current customers
 Through online marketing research

Few of the sample questions that we collected from a questionnaire are as

follow:
1. Are you aware of Ufone?

2. Have you ever been customer of Ufone?

3. Are you satisfied with the service of Ufone?

 4. Are the packages providecd by Ufone on advertisement really
persuasive?

5. Do the offers really exist provided by the Ufone?

6. How do you find the quality of network provided by the Ufone?

7. Packages offered by Ufone are relatively expensive or

inexpensive?

8. What type of problem do you face while using Ufone?

9. Evaluate the performance of customer service of Ufone?

10.how do you find the atmosphere of franchise?

Research Contact Method Sampling Plan Research

Approach Instruments

Survey mail, texts, Sampling unit Questionnaire

telephone, online
 DESIGNING AND MANAGING INTEGRATED
MARKETING COMMUNICATIONS

Ufone believes in integrated marketing communications which says that a

company should carefully integrate and coordinate its many communication
channels to deliver a clear, consistent, and compelling message about the
organization and its products. Ufone is using this strategy very effectively
through its Promotion tools i.e. advertising, personal selling, public
relations, direct marketing and sales promotion and is conveying this
message to the target customers that its all about “U”. Through all the ways
of communicating to the customers Ufone with great clarity, is conveying
the desired message to the customers. According to the strategy a company
should convey the same message through all means of communication and
should very clearly state the message it desires to deliver to its target
customers. If we check its official website, its advertisements in magazines
and newspapers, or its TV commercials we will get same message telling
“its all about U”. Ufone employ different marketing activities and channels
to communicate and deliver value to customers. These activities are
coordinated to provide maximum communication output. These
communication channels include:
Advertising: Ufone believes in aggressive communication and is promoting
its package life plus through newspaper ads,magazine ads and tv
commercials. Ufone is a heavy spender on advertising in electronic media as
well as other media.
Sales promotion: “Sales promotions are short term incentives to encourage
the purchase or sale of a product or service”. Ufone utilizes sales promotion
activities to boost its services.
Public Relations: Ufone is less conscious of developing its general public
relations. It avoids getting in news stories and controversies but sometimes it
proves inevitable.
Direct Marketing: Ufone employ on-road umbrella franchises where they
directly market and sell their connections and sims.
Personal Selling: Ufone administers personal selling facility to sell their
postpay connections targeting well to do people and businessmen.

Communication process
To communicate effectively, Ufone is communicating with its customers
through communication process including 9 elements.

1. Sender: In this case Ufone is the party sending message.

2. Encoding: Ufone’s advertising agency assembles words and

illustrations into an advertisement that conveys the intended
message to its customers.

3. Message: It’s the set of symbols that the sender transmits, In

Ufone’s case its conveying the message that “its all about U”
showing whatever that UFONE offers is for U(the target
customers).

4. Media: It’s the medium through which the message moves from
sender to receiver in Ufone’s case its TV
Commercials,magazines,newspapers and online advertisements.
5. Decoding: The process by which the receiver assigns meaning
to the encoded message. Ufone, In this case is a winner because
the receivers interpret exactly the same meaning of Ufone’s
message as desired by the company.

6. Reciever: The party receiving the message, In this case it’s the
target customers or the youths.

7. Response: The reaction of consumer after getting the message,

such as after watching Ufone life plus’s commercials its users
feel more important and become aware about its wide variety of
offers

8. Feedback: The part of receivers response that is communicated

back to the sender. For feedback Ufone life plus created many
sources like on its official website it offers a toll free number
offering 24 hrs service and a helpline for complaints and
feedback.

9. Noise: This element includes the unplanned static or distortion

during th e communication process. Like if a customer misses
Ufone life plus’s ad or if misinterprets the ad.
 RETAILING

All activities involved in selling goods or services directly to final

consumers for their personal non-business use.
Main types of retailers are as follow:

 Specialty store : a store that sells only one kind of merchandise for
example AYS,K&Ns.

 Discount Store : sales outlet offering goods at a discounted price for

example Kmart, Ames.

 Department Store : a large retail store organized into departments

offering a variety of merchandise; commonly part of a retail chain for
example John Lewis Newcastle
  Convenience Store : a store selling a limited variety of food and
pharmaceutical items; open long hours for the convenience of
customers for example Stop-N-Go, Seven-Eleven.

 Super Markets : a large self-service grocery store selling groceries and

dairy products and household goods. For example CSD.

 Off-Price Retailers : retail stores offering merchandise at prices less

than other retail stores. They acquire out-of-season products and
distressed merchandise from other retailers, including bankruptcies,
and from manufacturers having production overruns. Off-price stores
can threaten retailers carrying name-brand merchandise at full retail
prices Big Lots, Ross Stores, etc.

 Super Stores : are larger stores compared to discount stores, and are
for big businesses . A few examples of big box stores are WAL-
MART Supercenter, Cosmo, Metro.

RETAILERS OF UFONE

In Retailing of Ufone Life, we will consider the placing of Phone cards and
connection sims in target market. Ufone life is distributing or placing Ufone
cards in the market through Intensive Distribution i.e. its cards are available
at almost everywhere for easy access like:
 SuperMarkets
 SuperStores
 Convenience Stores
 Department Store
You will find Ufone prepaid cards in almost everyshop near you, so
they are using intensive distribution strategy plus they are providing
online support too.
RETAILING OF UFONE LIFE CONNECTIONS

For placing the Ufone life connections the company is using Selective
distribution strategy which means that connections are available at fewer
selected stores and unlike the retailing of cards, but still at easy access.
Retailers of Ufone life connections are:

 Franchises: (an authorization to sell a company's goods or services in

a particular place) Ufone connections are available at Franchises and
they have franchises.

 Convenience Stores: they also sell Ufone Life connections to the

customers.
  Specialty Store: like PCOs and other small stores who deal only in
telecommunication products and services also sell Ufone Life
connections.

WHOLESALING OF UFONE LIFE CARDS AND

CONNECTIONS

All the activities involved in selling goods and services to those buying for
resale or business use.
Wholesaling of Ufone life is done mainly through the brokers and agent.
Who provide the retailers with Ufone cards and connection sims.
Wholesaling plays a very little role in placing of Ufone Life in target market.
Its placing is done mainly from the franchises to directly the retailers.
THE MARKETING ENVIRONMENT OF
UFONE

 MICRO ENVIRONMENT

 MACRO ENVIRONMENT
MIRCOENVIONMENT: The factors close to the company that
affects its ability to serve the customers.
 Company

Market
Competitors intermediaries

UFONE LIFE

Publics Customer
COMPANY:
Pakistan Telecommunication Corporation Limited (PTCL) started its
operation in January 29, 2001 under the brand name “Ufone”. As a result of
PTCL’s privatization, Ufone became a part of The Emirates
Telecommunication Corporation Group(ETISALAT) in 2006.

PRESIDENT AND CEO:

Mr. Abdul Aziz

FINANCE DEPARTMENT:
Ufone has an efficient finance department headed by

Mr. Muhammad Nadeem Khan

MARKETING DEPARTMENT:

Ufone has an outstanding marketing department working under the

command of

Mr. Akbar Khan

CORPORATE STRATEGIC PLANNING:

The corporate’ s strategic planning department is working under

Mr. Moqeen-Ul-Haq

All the department s of Ufone are well coordinated adding to the

successfulness of the company
 CUSTOMER:
Ufone Life had 20 million customers in less than a decade. Ufone Life
customer market includes the following:

 CONSUMER MARKET:
Ufone Life has a large consumer market. This package is proved
profitable in all cities of Pakistan and popular among every age group.

 BUSINESS MARKET:
Ufone Life has no customer market, because it is not a secondary
service. It is a complete service itself and is better suited for personal use.

 RESELER MARKET:
All stores, shops and ufone franchises selling Ufone life are its potential
and profitable resellers.

 INTERNATIONAL AND GOVERNMENT

MARKET:
Ufone life has no international and government market.
 COMPETITORS:
Competitors of UfoneLife are cellular companies operating in Pakistan
 Mobilink
 Telenor
 Zong
 Warid
 World-Call Wireless
 Go CDMA

Ufone has to maintain the quality of its services in highly competitive

environment.
 PUBLICS:

Ufone life is affected by every kind of public whether it is Ufone’s customer

or not.
INTERNAL PUBLIC:
Ufone’s management stresses on being friendly with
all the members of organization. To generate feelings of devotion and
goodwill for the company with in the internal public, they are dutifully
informed about any changes that are being made in the organization through
meeting and seminars etc.

LOCAL PUBLIC:
Not effected by any local factor.

MEDIA PUBLIC:
Includes different T.V. Channels showing Ufone advertisements, and all
newspapers, magazines and radio station promoting Ufone.

GENERAL PUBLIC:
People who are using Ufone’s services as who don’t use make general
public.
 MACRO-ENVIRONMENT

Forces that shape the opportunities and pose threats to the company.

Demographics

Cultural Economics

Ufone Life

Political Natural

Technological
 POLITICAL ENVIRONMENT:
Changes in government of Pakistan also affects ufone. It is because every
government has a few changed strategies for telecommunication sector.
PTA(Pakistan Telecommunication Authority) is made to regulate laws
regarding telecommunication. Government has defined clear laws for
cellular companies including Ufone. First registered itself in PTA.
 A telecommunication company is required to follow a verification
procedure before issuing or activating a sim. This verification is
carried on the basis of data provided by NADRA for which usually a
copy of NIC is taken.
Ufone also follows the above mentioned procedure before issuing a sim
or activating it. If a company doesn’t follow the law, serious action is
taken against it.
 In Oct. 2004, Ufone was alleged of selling a sim without acting in
accordance to rules, therefore PTA fined Ufone for 150 million
Rupees.
 DEMOGRAPHIC ENVIRONMENT:

It includes
 Family Size
 The characterization of inhabitants of Pakistan
 Changing the life style
 Geographic shifts in population
 Increasing diversity
Ufone life main target is youth with the increase in population, Ufone
Life package’s sales are increasing,similarly with changing life style,
mobile phone has become a necessity, so this way to sales are increasing.
Now a days even children aging 15 yrs are keeping mobile phones so it’s
a shift in trend.
 ECONOMIC ENVIRONMENT:
Ufone Life is also affected by economic flactuations, the changing
economic factors faced by Ufone are:
 Rise in inflation
 Change in per capita income
 Change in consumer spending patterns
 Increase in government tax on Ufone’s service.
The sales of Ufone Life package may decrease due to decrease in per capita
income and rise in inflation because people fail to afford the service.
Similarly due to GST(government sales tax), the sales are effected.
Consumer spending pattern are always subjected to change beside this
Today, telecom. Industry is progressing by leaps and bounds, there is an
increased opportunity offered for investors.
 CULTURAL ENVIRONMENT:

Mobile connections did not face any acceptance problem in Pakistan, as they
do not violate any cultural norms. Ufone life gives small offers on festive
occasions.
 On Eid-Ul-Fitar in Sep. 2009, Ufone life made an offer, giving free
minutes to subscribers who haven’t subscribed since 20th Aug. 2009
and gone equivalent free minute of the amount they recharged and
used till 18th Sep. 2009.

NATURAL FACTORS:
Natural factors do affect Ufone Life’s service like thunderstorm.
 Earthquake of 8th Oct. 2006, affected the company adversely causing a
great loss and the services ceased because boosters were collapsed.

TECHNOLOGICAL FACTORS:
New technologies are entering in the market rapidly and the competition
of Ufone Life with its competitor cellular companies is on peak.
INTRODUCTION TO PRODUCT LIFE CYCLE
(PLC)

The course of a products sales and profits over its lifetime is called the
product life cycle. After launching the product the management wants the
product to enjoy a long and happy life. Although it does not expect the
product to sell forever, the company wants a decent profit to cover all the
effort and risk that went into launching it. Management is aware that each
product will have a life cycle, although the exact shape and length is not
known in advance.

STAGES OF THE PLC

INTRODUCTION STAGE
The introduction stage starts when the new product is first launched.
Introduction takes time and the sales growth tends to be slow at this stage.
Because it takes time to roll out a new product and fill dealer pipelines.

GROWTH STAGE
If the new product satisfies the market, it will enter a growth stage, in which
sales will start climbing quickly. The early adopters will continue to buy,
and later buyers will start following their lead, especially if they hear
favorable word of mouth.
 MATURITY STAGE
The maturity stage is the most profitable. This maturity stage normally lasts
longer than the previous stages and it poses strong challenges to the
marketing management. Most products are in the maturity stage of the life
cycle, and therefore most of the marketing management deals with the
mature products.

DECLINE STAGE
The sales of most product forms and brands eventually dip. The decline may
be slow or may plunge to zero or they may drop a low level where they
continue for many years.

PLC CHART
 PLC Of Ufone Life Package:

Introduction Stage

At the time the life plus package was introduced it had the lowest call rates
both on and off net provided by any network in Pakistan.As no other cellular
network provided these types of low call and SMS rates, so Ufone’s
subscriber number increased rapidly.

Growth Phase

After the successful introduction of the life plus package its popularity
started to increase due to the fact that the call rates were extremely cheap as
compared to other cellular companies. This rise in popularity caused a rise in
number of sales of Ufone Sims which lead to people converting to the life
plus package. During this period there was an increase in use of the life plus
package which meant that the life plus package was generating good profit.

Maturity Phase

Ufone’s Life plus package is currently in the maturity phase of its product
life cycle. This is because at the present moment its subscriber number is
neither increasing nor decreasing And also because currently this package
has a wide market share. All of the potential subscribers have already
subscribed to the package so there is no chance of any sort of increase in
profit later on; now this package is at a stage where it will continue to earn a
steady amount of profit until a strong competitor comes along. Only then
will the package enter into the decline stage of the product life cycle

Strategic planning process

Mission Statement:
Mission is to provide best service with best coverage that would
eventually generate profit for company and its stake holders.

Goals:

 Marketing leader of cellular world

 Build name in mind of customers
 Make chances of growth against competitors
 Provide service in each corner of Pakistan
 Minimize their cost of providing service
 Target each segment of market
 Bombardment of advertisement
 TACTICS:
Brand Management:

 Creative communications
 Position brand by identifying a new attractive role

Brand Awareness

 To offer new packages in such a way that most people enjoy them
 To build attractive ads
 To do different ATL and BTL activities
 MARKET SEGMENTATION

 As basically postpaid is used by business class so market segment for

business class is comparatively less
  Mainly university and college students use prepaid. As it is
economical and affordable for them so larger segment is covered by
students
 As Ufone prepaid gives friends and family offers so women and old
age people find it cheaper than other networks and postpaid
connections
 As labors are unable to use postpaid connection and Ufone Prepaid
gives cheapest rates so labors is also one of the important segments
 As Ufone agreement with government and private companies of
Pakistan so working class is also a segment of Prepaid.

VARIABLES OF SEGMENTATION

Demographic factors:
 Ufone prepaid is basically targeting students by giving cheapest
call rates. Messaging and night call packages so we can divide
market accordingly.
Age group: 15-22

 As Ufone is also targeting working class so demographically it can

be divided into
Age group:22-40

 As Ufone is also targeting housewives and aged people so we can

not neglect them
Age group: 40 onwards
Geographic factors:
On the basis of geographic factors we can divide market into two
segments:
o Rural
o Urban

o As Ufone first captured the main cities to capture greater

market share.
o After great success they expended their coverage
o Now they are moving towards the northern areas which will
be their main achievement.
Behavioral factors:

o Ramadan Package:
Ufone prepaid offers lowest call rates during fasting hours.

o Eid Package:
Give lowest international call rates so that people remain connected.
They also give special call rates to Saudi Arabia during Ramadan and
HAJJ days.
Psychographic factors:
o According to the new and busy lifestyle Ufone prepaid is offering a
new package called “GHANTA PACKAGE”. In which you can call at
2.99/hr to any Ufone number at any time of day.
o According to new lifestyle they introduced GPRS for the first time in
Pakistan
o According to the lifestyle of students they introduced different SMS
Packages with low rates.
Price:
As compared to other telecommunication companies, Ufone offers its
services with lower and affordable rates. The price of product matters in the
market but low price with high density service is not an easy task to
accomplish. For the satisfaction of valued consumer Ufone merged the low
price and high density services with wide network.

Pricing Strategy of Ufone Prepaid:

Pricing strategy plays very important role to acquire market share where
giant competitors are already working and moving ahead.

Ufone has implemented low pricing strategies to reach its objectives,

Pakistan’s mostly population contains on Middle class and working class
people. In the early age of Ufone launched, they decide their logo by the
people opinions that boost its products. An advertising campaign launched
showing Bakra Market that relates to Middle class of Pakis
 ADVERTISING
Ufone spents heavy budget on advertising thanks to the growing competition
in telecom industry in Pakistan.It plans to increase it’s market share through
rigorous advertising and mass promotion.

Advertising objectives:
Ufone informs its consumers about a new package under which you can call
at at 2.5 Rs/hour from 12 a.m to 7 a.m. They are targeting the young
audiences who usually require cheap call rates at nights.
Another feature of this package is that all calls made on Saturday and
Sunday between 9 am to 5 pm cost only 4.99 Rs/hour.Ufone again targets
people who are away from their families and loved ones and need affordable
calling rates to stay in touch with them.

Ufone is trying to persuade this segment(youth) to switch to their

connections and utilize this package.
Advertising budget:
This package’s ad is played on TV for 15-25 times a day and costs 2-4
millions of rupees.The cost varies with the time of the day it is played.
Ufone spents 20% of it’s profit on sales and promotion.

Develping advertising strategy:

The message content of this advertisement deals with humour.It is very
colourful and enchanting.Green and orange colours basically dominate as
they are the colours used by ufone on it’s logo.
The man behind these creative idea’s is a very well known comedian Faisal
Qureshi.Along with him are a team of well reputed actors Mikaal Zulfiqar
and Adeel Hashmi.Ufone always hires endorsers in groups.

The advertising media for this package is:

-Print media
-Electronic or broadcast media
-Display media
-Online media
-Events

Ufone places it’s ads on most of the leading country’s leading newspapers
including The News,Dawn,Nawa-i-Waqt etc and on popular magazines such
as Sunday magazines,Libas etc.

All major broadcasting channels air ufone’s ad including Geo TV,Art

digital,Dunya news,HBO etc and local or provincial channels such as Punjab
TV,Khyber etc.

Ufone displays ads on billboards,buildings,posters,shops and on

vehicles(Rickshaws).

Ads are even displayed on the internet and on events sponsored by ufone e.g
concerts.
 Public Relations
In the past ufone had hired three lollywood actresses for there advertisement
but it stirred up a controversy regarding it’s eroticism and negative
appeal.They had to remove there billboards and banners as directed by there
executive(CEO).
But with this ad things have taken a u-turn for Ufone.There past controversy
has completely died and they are riding high.There image in the eyes of
public has improved and people like there commercials more than ever.
Ufone is less conscious of developing its general public relations. But
recently it has launched its “Hajj Guide” service on Ufone. It avoids getting
in news stories and controversies but sometimes it proves inevitable
 Sales promotion
Ufone uses sales promotion to stay within its customers and to further
enhance it’s sales.

The sales promotion tools it uses are

-Contests
-Games
-Premiums
-Gifts
-Free tickets
-Promotional products

Ufone was running a game show on ATV channel under which its customers
could participate and win prizes.
It offers premium to those customers who didn’t use there sims for 5-6
months in the form of extra free balance.
Ufone offers cash prizes of lakhs of rupees, car,Lcd tv and mobile phone as
gifts in a bumper prize.
It recently offered free tickets to Dubai on eid.Each time you call and if your
call is more than 5 minutes you enter into a lucky draw to win a free ticket to
Dubai.
“Phone bhi Ufone bhi”. It was a promotional offer By Ufone where it offered a mobile phone, free air
time, Ufone connection and Rs.100 airtime all for Rs.999.And now Ufone also offers Blackberry
mobile sets with PostPay connection.
Another recent promotional offer by Ufone is that with your HBL Credit Card; get a free handset of
your choice, a Ufone PostPay connection and airtime. Existing as well as new HBL Credit Card
customers may avail this offer.