Internship Report On Ufone 2016
Internship Report On Ufone 2016
Internship Report On Ufone 2016
On
UFONE
Supervised By:
Madam Neelam Akbar
Submitted By:
Dawood
Roll No:-1201039
Bachelor Of Business Studies
Specialization (Marketing)
UNIVERSITY OF SWAT
This is certified that Dawood has studied this internship report titled UFONE.
University Registration Number UOS1201039. I conclude that this internship report is
of sufficient standard to warrant its acceptance by University Of Swat for carrying out
final viva.
Semester Committee
External Examiner
ACKNOWLEDGEMENT
In the name of Allah, the Most Beneficent, the Most Merciful. All praise and
thanks to Allah, lord of the universe and all that exists. Prayers and peace be upon His
prophet Mohammed, the last messenger for all humankind.
First of all, I am great full to my worthy teacher Madam Neelam Akbar for
providing me the Opportunity of doing internship in UFONE. I am also thankful to all
other Teachers as the knowledge imparted by them Enable me to study the organization
in a best way.
Second, I would like to thank those whose help made it possible for me to have
an internship period in Ufone Khwaza Khela swat. I would also express my gratitude
to my teachers whose kind words are always guidelines for me. I also, would like to
express my thanks to my parents for their help and caring attitudes.
Dawood
BBA (Marketing)
ROLL NO 1201039
Table Of Contents
List of Tables ................................................................................................................. 7
1.Introduction ................................................................................................................. 9
5
8. Short-Falls/weaknesses of the Marketing Department ............................................ 28
6
List of Tables
List of Figures
7
List of Abbreviations
8
1. Introduction
Since the inception of Pakistan, basic telecom services were being provided by a
monopolist, previously called as Telephone and Telegraph department (T&T). The
department was being run by the Government and played multiple roles of regulator,
policy maker and operator in the country. The T& T department was later converted
into a corporation. Although the corporation was earning huge profits from the services,
it was re-investing the same profits into the sector for the provision of more telecom
service but the investment was not enough. Further, with the technological
advancement, more and more telecom services were becoming available but there was
not enough money available with the corporation to install new telecom systems for the
provision of modern services. Resultantly, a digital divide prevailed in Pakistan and we
remained far behind our neighbors and other comparable countries in terms of telecom
access.
Cellular mobile services in Pakistan were commenced in 1990s when two cellular
mobile telephone licenses were awarded to Paktel and Pak Com (Instaphone) for
provision of cellular mobile telephony in Pakistan. Currently there are four cellular
players in the market, two with GSM and two with DAMPS technology. Cellular
subscribers though grew over the years however, due to partial competition; cellular
companies could not meet the growing demand in Pakistan. Keeping in view the above
factors, government of Pakistan has decided to move away from monopoly situation in
basic telephone and introduce more competition in the cellular market of Pakistan. The
year 2003-2004 is considered as a historical year in the history of telecommunication
in Pakistan. The telecom deregulation which started early this year in Pakistan has
revolutionized the whole industry. Significant landmarks are achieved and the local
telecom scenario is completely changed. Today all telecom services in Pakistan are
open to competition whereby incumbent monopolies will now be competing with
telecom giants of the world working in Pakistan. Telecom services consumers are
forecasted to increase by many folds due to price reduction under competition and price
regulation of SMP operators by the Authority.
Telecom sector is seeing exorbitant growth in Pakistan. The sector is said to be
growing at a pace of 170 per cent yearly. Mobile subscribers are 71.5 million as of
October 2007, according to Pakistan Telecommunications Authority (PTA), 2.7 million
subscribers are added monthly. In fact Pakistan has the highest mobile penetration rate
in the region.
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2 Objectives of Studying the Organization
As we know Ufone is one of the largest company of telecommunication. We give
a brief history of the company and tell about the achievements and growths of Ufone.
It put light on the whole organization specifically its marketing department and the
activities ongoing in its marketing department. These activities include two of its major
components i.e. Sales Promotion and Advertising. These two are the main topics of this
report which we have discussed in the depths of the companys strategies and
functioning. Further we review Ufones strengths, weaknesses, Opportunities and
Threats (SWOT Analysis). In the end we give the future plans of Ufone and conclude
with our views and suggestions for Ufone.
Objectives of the study are given below,
1. To study the existing structural and functional set up of ufone.
2. To critically analyze the functions and procedures of ufone and to point out
the difficulties and problems faced by this organization.
3. To give recommendations for improvements and functions of ufone.
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3.1 Nature of the Organization
Ufone one of the foremost telecommunication company in Pakistan. As mobile
users in the country have reached over 28 million at very rapid pace, Ufone has maintain
itself as the 2nd largest cellular operator in Pakistan with a subscriber base of around 6.5
million and market share of nearly 25%.Ufone has seen a subscriber growth rate of over
200% in the last year, and the start of 2005 Ufone added nearly 5 million subscriber
onto its network .A remarkable achievement indeed, especially considering the fact
those two new international players also entered to market in 2005.Subsequently the
growth in subscriber based caused a healthy trend in revenue which have doubled.
Ufones operational performance has been very hopeful. Despite the stiff
competition in Pakistan telecom market which has led to decrease of prices to bare
minimum level, due to its violent policies and exercise strict control over expenses the
company manage to improve its revenue and after-tax profit by 37% & 54%
respectively, as compare to last year. After Mobilink, Ufone is the second cellular
provider company that is based on GSM technology. Basically they are using GSM 900
technology with version 2001. Apart from this they are very strong in technological
developments especially they have a well-establish research and development
departments that is working on new technology. Likely they are the first company in
Pakistan that is offering GPRS facility to their customers.
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The company has also been awarded a new License for providing cellular
services in Azad Jammu & Kashmir and Northern Areas.
Prepaid Services
Tariff
Recharge
SMS bundle
U-Circle
International Calling
Products & Features
U-share
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Public Demand
Life
Call Details
Postpaid Services
Tariff
International Calling Tariff
Postpaid Supplementary Connections
Boundless Roaming
Value added Services
Rewards
Payment Choices
Customer Care
Blackberry
Corporate Services
Value added Services
VAN- Personal Network
Ufone/ABN AMRO Credit Card
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U-Tunes
CEO
GM
Customer care Business Unit
Manager
GM (BUM) North
HR & Admin
GM
Finance BUM Central NOTE:
Similar
GM
Information Systems
Lines for
BUM South the other
GM two BUMS
Marketing
GM
Engineering
GM
Quality
Assurance
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4.1 Main Offices
Marketing
15
Marketing Operations
Strategies
Advertising strategy consists of two major elements: Advertising Message
&Advertising Media. Ufone has the following strategies regarding the Message and
Media of advertising
Message
Message Content --The very first content of Ufones advertising message was
humor, and then in its blooming stage it shifted its message content to youth
fulexcitement. Recently Ufone has again adopted humorous theme for its message
content. This time Ufone is winning the hearts of people through humor and it has
increased RPI of Ufone. Ufone has already generated much revenue through it
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Media
To increase the reach and frequency of advertisement Ufone is using repetitive
strategy for its advertisements. And the humorous theme always makes the ads
more appealing and engaging the minds of customers.
Ufone advertise in the following media types:-
Print Media --Ufone tries and print ads in all leading newspapers including The
Dawn, Jung, Nawa-i-Waqt, Khabrain and local Sindhi newspapers as well. Ufone place
its ads in all leading magazines as well i.e. Sunday magazine, akhabr-e-jahan, Libas,
Mag etc
Broadcast Media -- It is the prior choice for Ufone. It includes the electronic media
television and radio. Ufone is advertising in all Pakistani channels including GEO,
Hum, ARY, Indus, TV one, HBO, Cartoon Network etc (except MTV Pakistan).Ufone
also plays its ads on local channels like WASEB and Punjab TV.
Display Media --This type of media is the second choice of Ufone where it carriesout
its most of sales promotion and advertising. Ufone advertise using billboards,
hoardings, signs (on Shop boards etc), posters, wall paintings etc
Online Media -- Internet is the online media. Ufone places flashing ads on famous
portals like coolbuddy.com, pakfellows.com etc.
advertising Events -- Ufone has sponsored many events in the past and holds future
plans concerning it.
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6. Function Of Marketing Department
6.1 Marketing Strategy
The foremost job of the marketing department is to bring new customers to the
organization. The marketing strategies devised by Ufone are discussed below.
By Geographical Market:
Geographically it is very important for Ufone to provide a good level of
coverage right from the start. The reason for this is that other mobile operators, who
have a head start of many years over Ufone, are fast expanding their network where
they are able to provide country wide coverage to their customers since coverage is
very important element for the success in the business; Ufone is also providing
substantial right from the start.32% of the population in Pakistan lives in the urban areas
while rest lives ion rural areas. Ufone is not only providing service to its urban customer
but also to its rural customers as well. Solid evidence is covering over 5442 key
destinations. Like other competitors, Ufone is expanding its network rapidly.
By Distribution Channel:
Ufone distributes its Sims through franchises (wholesaler) then the franchise
further distributes the Sims in local shops (retailers).
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Ufone has also done outsourcing to many local companies and then these
companies distribute Cards, banners, posters in their assigned areas.
20
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.
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. Ufones painted 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
Theme:
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The format of Ufones advertisements has always been very colorful and eye
catching. The shocking Orange & Green colors used by Ufone always attracted people.
These colors looked beautiful on wall printing of Ufone. However Mr.Waqas Anjum
(Senior Marketing Executive) was of view that you must bring changes in marketing to
attract customers. For this purpose, Ufone re-launched itself under the name of one
single brand called UFONE. This brand has Orange & Black as its corporate color
instead of conventional Orange & Green color.
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7. Relation of Practical Experience and Theoretical Concept
Working on the practical side gives a large set of experiences and knowledge.
The theoretical studies focus on the all the aspects of the organization. While the
practical experience gives the better knowledge
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Ufone Mini Smart Card
If U have tried the Super card and found that it offers even more than your
requirements, the Mini Super Card has been designed just for U. Upon loading
Rs.275 Mini Super Card, U will get 500 minutes to Ufone, PTCL and Vfone
numbers, 75 minutes to other local mobile networks, 500 SMS to all local mobile
networks, 500 MB Mobile internet for both 2G and 3G customers. All this in one
power-packed solution and with a validity period of 15 days. That too without any
additional taxes, call charges or any kind of rates calculation. Mini Super Card can
also be availed through Uload.
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Telenor, and Warid are also considered as strong competitors. The following are Ufone
direct competitors.
Mobilink
It started as a joint venture of IWC, Motorola and Saif Group in 1994 with GSM
digital technology. Foreign partners later sold out and now Mobilink is a subsidiary of
Orascom. It is the current market leader with a strong nationwide footprint and 56%
market share. Mobilink is benefiting from its earlier entry in the market, its GSM
technology and availability of a large variety of cell phone models.
Mobilink is currently the largest cellular company in the country as far as the
number of subscribers and covered cities are concerned. The company proudly boasts
of being the first cellular service provider in Pakistan to operate in a 100% digital GSM
technology.
It is currently providing nationwide coverage in over 300 cities and also has a
roaming partnership with 210 operators worldwide. It also got an ISO 9002 Quality
Management Systems Certification for billing, engineering department and customer
service contact centre. Mobilink has also been nominated for the category of Best
Mobile Operator of the Year, Regional India and Subcontinent Awards at the Asian
Mobile News Awards 2004.
Telenor
Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations
in Asia together with Thailand, Malaysia and Bangladesh. Telenor acquired the license
for providing GSM services in Pakistan in April 2004, and had launched its services
commercially in Islamabad, Rawalpindi and Karachi on March 15, 2005 and on March
23, 2005 Telenor started its services in Lahore, Faisalabad and Hyderabad. Telenors
investment in Pakistan is the single largest direct European investment in Pakistan.
By the end of July 2014, the total subscribers of Telenor exceeded 25 million,
with a market share of 20%. Telenors network covers more than 3000 cities, towns
and highways throughout Pakistan. Furthermore, Telenor Pakistan has more than 5,000
cell masts throughout Pakistan, making it the 2nd largest network in Pakistan and 3rd in
terms of customer base.
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Telenor has a strategic alliance with Nokia Siemens Networks for expansion in
Pakistan. With USD 1 billion already invested, Telenor has extended agreements with
its vendors, including Nokia Semens for network expansion and services until 2009.
The agreements will result in USD750 million worth of orders from Telenor Pakistan.
Warid
Warid Telecom is a joint venture between Abu Dhabi Group & SingTel Group.
In 2004, Warid Telecom International LLC, purchased a license for operating a
nationwide mobile telephony network, (WLL) and long distance international (LDI) for
$291 million US dollars and was the first venture of Warid Telecom International LLC.
Warid Pakistan launched its services in May 2005 and is based in Lahore.
Abu Dhabi Group is one of the largest business groups in the Middle East and
the single largest foreign investor in Pakistan. Abu Dhabi Group entered into a strategic
alliance with Singapore Telecom. Subsequent to this transaction in July 2007, telecom
giant SingTel acquired 30% percent equity stake in Warid Telecom, Pakistan, for
US$758 million- valuing the company at an enterprise value of $2.9 billion. This
partnership is part of a strategy to support Warid Telecoms continued growth and to
enhance its market position.
In July 2014, Warids total subscribers were more than 18 million subscribers
and enjoyed 4th position in the market with a market share of 18%. In June 2008, Warid
Telecom announced it would invest $1.5 billion by end of this year and $2.5 billion by
end of 2009 to expand and modernize its network in Pakistan.
Zong
China Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile. The
pioneering overseas set up of China Mobile came through acquisition of a license from
Millicom to operate a GSM network in Pakistan. With ambitious plans to cater to the
fastest growing Pakistani market and to win over the ever demanding Pakistani
customer, CMPak's edge comes from the experience and expertise of running the
world's largest telecom service and the commitment they make to setting quality and
customer relations standards. ZONG is the first International brand of China Mobile
being launched in Pakistan.
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On 22nd January 2007, Millicom International Cellular S.A. announced that it
would sell its 88.86 percent stake in Paktel Ltd. to China Mobile for $284. On 4th May
2007, Paktel was renamed to CMPak and then, on 16th May 2007, China Mobile
announced that it had upped its stake in CMPak to 100%. It later rebranded branded
Paktel to Zong.
In July 2014, the total subscribers of Zong were more than 11 million and
enjoyed 5th position in the market with 5% share in the market. So far CMPak has
invested more than US$ 700 million in the telecom sector in Pakistan and an additional
US$ 800 million will be invested till the end of year 2014
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8. Short-Falls/weaknesses of the Marketing Department
8.1.2 Weaknesses
The weak points of the organization which can affect the company are
the weaknesses of the company. Weaknesses of ufone are
Low margins
Network problem
Low coverage area
Low Pay Scale
Signals fluctuation problem
3G and 4G issue
Low profit margins for stake holders
8.1.2 Threats
That issues in the external environment which can affect the
organization in any way are the threats. Some of the Ufone threats are.
New market competitors
Political Environment
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Customers expectations
Tax rates
High tax rates
Network Coverage
Service Quality Declination
8.1.3 Opportunity
The positive aspects of the company in the external environment
which helps the company in achieving its goals are the opportunities. Given are the
opportunities of Ufone.
National company
High quality network coverage
Market strategic
Expanded coverage area
Advance technology
New products
High promotion
Low pricing strategy
Customer satisfaction
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levels of management should complement each other at corporate, operational
and functional level of management.
Introduction of new services and keeping different realistic services for every
category of customers
9.2 Conclusion
During the internship i realize that analyzing the marketing of Ufone, i agree
that Ufone is not a safe player in the market. It is penetrating its market by taking risks
and aggressively promoting & advertising itself. It holds second largest market share
and is seeking to become the market leader anyway possible. We came through very
unconventional strategies and ad campaigns while working on this report. We believe
that mobile services are the toughest market to enter and survive. And in this tough
market Ufone isnt only surviving but growing at an exceptional rate.
Ufone is using humorous theme in its ads which has become its benchmark.
People enjoy watching, discussing and following Ufone ads the most. And it is the
biggest achievement of Ufone in recent times.
Telecommunication industry is growing very fast in Pakistan but there is still
huge financial investment required for better Coverage. Market has now a very strong
and tough Competition due to China Mobiles. Competitors are keen to hire
professionals to give better way of amusing which certainly resulting technological
execution and significance services. Most of the people were worried about the high
call rates so they not used to prefer any particular company. So ultimately the the
customers start looking for companies while having low rates with better quality
between the market. Ufone brought up some stunning packages for their users they start
promoting their existing products in a better and authentic way which start helping the
company very fast and better way.
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10. References and Sources Used
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Ali, J. F., Ali, I., Rehman, K., Yilmaz, A. K., Safwan, N., and Afzal, H. (2010).
Determinants of consumer retention in cellular industry of Pakistan. African
Journal of Business Management, 4(12), 2402-2408
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