Marketing analysis of Ufone

Executive Summery

Ufone is the second largest cellular network in Pakistan. The head office of the Ufone is located in 13-B, F-
7 Markaz Islamabad, Pakistan. Every Organizational whether its multinational, private business or Govt.
Offices depend on its people. Telecom industry is growing in Pakistan with new companies is getting license
the competition is though as a result is the consumer is getting benefits and enjoy low call rates. With a
population of 15 million countries Ufone is one of the best telecommunication networks that generate
revenue. Ufone Company commenced its operations under the brand name of Ufone from Islamabad
on January 29 2001. Ufone Provide two kinds of Services that is Ufone Prepay and Post pay. In postpaid
they provide a lot of packages such as Uwon, Ushare. Public Demand etc. in post paid they provide a Black
berry, payment choice, value added service etc.
Ufone has always played a vital role in the development of cellular market in Pakistan. It has been a step
ahead in introducing a innovative product in the market. Ufone adopted the policy of simplified tariffs with
no hidden charges. Ufone targeted the middle class, by introducing low rates. Ufone has network coverage
in more than 5885 locations and across all major highways of the country. Mobilink has 910,000
subscribers and Ufone has 565,000 subscribers. According to the latest marker survey there is 70.64%
annual growth in this sector. So when Ufone will change their technology the market is open for
them because their prices are low and they are catering to middle and lower middle class which has quite
big ratio in Pakistan.

Further more I m going to research on Ufone, the research situation is the consumer satisfaction is going
to increase due to its Price, Quality and Coverage. Consumer satisfaction is dependent variable and Price,
Quality and Coverage are independent variables. I am using the Primary and Secondary data for research
on Ufone.

Title of Research Project & Objectives.

The Customer satisfaction of Ufone is going to increase due to its Price, Quality and Coverage.
 To identify the present Market Scenario of Ufone.

 To examine the prospects of Ufone in the overall Pakistan Market.

 To know the scenario of its improvement and image.

 To recommend some corrective measures, suggestions and recommendations to

resolve the problems.

 To conduct the comparative study between Ufone and other prominent Players in
the market.

 Analysis of customer satisfaction and to find out the reason behind customer buying
behavior while purchasing Ufone
 INTRODUCTION
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.
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 years, 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 5885 locations and across all major highways of the country.
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 to
19.4 million. Ufone currently caters for International Roaming to more than 230 live operators in more
than 130 countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia,
United Kingdom, United Arab Emirates, Singapore, Portugal, Thailand, Cyprus, Bangladesh, Uzbekistan,
Tunisia, Sri Lanka, Belgium and Kuwait with lowest rates, featuring no security deposit and activation
charges. GPRS Roaming facility is available with more than 115 Live Operators across 85 countries. The
Company has also been awarded a new License for providing cellular services in Azad Jammu & Kashmir
and Northern Areas.

HISTORY of Industry:
In 1990, Pakistan introduced its first mobile phone service called “Paktel”. After eleven years in January
2001, a new cellular company with GSM technology came into the market and they named it Ufone. The
government of Pakistan granted them the license of Pak Telecom mobile limited to operate GSM 9000 all
Around Pakistan. Ufone succeeded to establish itself in the market by providing quality service at low rates.
After it’s opening, initially they started their service in major cities like Rawalpindi, Islamabad, Karachi and
Lahore and on major highways. Later the service expanded to other major cities like Peshawar, Quetta and
different towns.
Ufone invested around $ 65 million to setup its modern technical infrastructure to provide high quality
crystal clear voice and fast data transmission. Ufone targeted the middle class, by introducing low rates and
different packages with Urdu names like Jazba etc to attracted lower and middle class people. Ufone has
expanded its customer support in a very organized manner with a planned network of dealers, outlets for
people convenient. Ufone is committed to care for its customers even after they have acquired a new
connection. Ufone not only focused on the technical capabilities, but to provide subscribers a convenient to
get connections and services. Ufone recently started GPRS through which users can connect themselves to
the global village via Internet, also introduced multimedia messaging services and worldwide SMS at flat
rates. Not only SMS but also provides Ufone Info service through which user can get latest information
about news, sports, religion, horoscope, stock exchange etc even live sports updates.
The tariff packages have been designed keeping in mind the requirements of every segment of the society
may that be a housewife, a taxi driver, a trader or a student. Ufone started its operation from Islamabad on
29th January 2001. Cellular industry performance in Pakistan before the launch of Ufone was quite dismal,
with one of the lowest population penetration rates in the
Whole region. Ufone’s strategy from the day one was to change this scenario and ensure that mobile phones
are turned into an everyday business and personal communication tools for all. This approach brought
about a revolution in the market; increasing its size five fold in a mere two years.
Ufone’s own performance in these two years has been exemplary, as it surpassed all financial and marketing
goals. Despite Ufone’s strategy to provide a high standard of service rather than increasing subscriber base
without capacity, it has achieved a substantial market share in a market ten years older than itself.

MISSION:
"Ufone, it's all about U! We are, where you want to be…
At Ufone we aim to provide you with wider coverage, superior connectivity, clear signals & voice quality.
Wherever you are, Ufone keeps you connected."
Vision:
“To be the leading telecommunication service provider in Pakistan by offering innovate communication
solutions for our customers while exceeding shareholder value & employee expectation.

COMPANY PROFILE:

An organization’s culture usually reflects the vision or mission of the organization’s founder. Because the
founder has the original idea, Ufone also have biases on how to carry out the idea. Ufone is one of the main
players of the telecom industry. Since its launching, it has gathered a large number of customers.
Ufone was 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 2006, 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, 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 IV 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 2,579 k in June 2005 to 7,487 k in June 2006. Ufone currently caters for International Roaming to
more than 230 live operators across 130 countries and introduced International roaming facility for prepaid
subscribers in Saudi Arabia and United Arab Emirates with lowest rates, featuring no security deposit
and activation charges.
The company has also been awarded a new License for providing cellular services inAzad Jammu &
Kashmir and Northern Areas.

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, Ufone’s 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. Ufone’s 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.
Performance:
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.

PRODUCTS AND SERVICES

Ufone is providing two kinds of services to satisfy its customer’s needs as efficiently as possible.
These are:

Ø PREPAY.
Ø POSTPAY.

PREPAY:

Ufone welcomes everyone to its prepay community where everyone can be their self, live life to the fullest
and talk up a storm with the most amazing calling and SMS rates.
At Ufone, they know people have a constant need to stay in touch with friends and family which is
why Prepay scratch cards are available in three denominations to suit the budget; so a person can charge
phone without making it hard on the pocket.
To say nothing of the entire mind boggling value added services it offers; they say a picture is worth
a thousand words wouldn’t a person rather send an MMS when you have so much to say? There’s Voice
mail for when you are unable to attend your calls, of course one needs to keep in touch with friends all the
time and calling isn’t always convenient, that’s where SMS’s come in; so you can put your thumbs to good
use. What’s more you can download all sorts of cool picture messages, wallpapers, ring tones, logos and
what not from the Ufone website onto your cell phone.
Ufone Prepay is everyone’s brand, hip and always with us, vibrant, innovative and unique, with an identity
that’s entirely its own.

A) Recharge Options:

Recharge your Prepay anywhere, any time you want with ease & convenience. UfonePrepay offers you just
that. Now recharge your account with our Scratch Cards, Electronic Vouchers, ATM or SMS.

Scratch Cards
Now recharging your Prepay account is easier and simpler then before with the most pocket friendly &
affordable scratch card denominations.
U-TOP UP:
Ufone has launched a recent offer for its pre-paid customers. It is just like easy-load like its others
competitors. You can load from as low as Rs. 10 to own wards, whatever amount you want.

B) SMS Bundle Offer:

Prepay offers unbeatable SMS Offer.
Ufone introduces an unbeatable SMS bundle offer which provides lowest SMS rates to any network in
Pakistan.

C) U-Circle:
Prepay provides an easy way to call Friends & Family
Ufone makes it easy for all prepay users to call friends & family with U Circle. Now one can talk more for
less with the most economical rates to call Ufone Circle.
U-Circle (FNF)

Numbers Allowed Call Charges

4 Ufone 45 paisas*
 1 PTCL 45 paisas*

D) International Calling:

Now make international calls with your Prepay at lowest ever call rates
Ufone prepay offers the most affordable international call rates, letting users stay connected with their loved
ones even when they are out of the country.

E) Products and Features:

With a wide range of products and features, Ufone Prepay connection is a complete communication solution
that offers:
Ø SMS.
Ø GPRS.
Ø MMS.
Ø Call Features.
Ø International Roaming
Ø Variety of amazing Mobile Products.

POSTPAY:
Endless possibilities of Ufone Postpay, a connection that connects with determination to conquer all odds.
Ufone Postpay is a brand that keeps up with customers, understanding their drive for victory in the
business arena and sense of belonging in the personal life. On the road to success, Ufone Postpay is a brand
for those who expect more from life, from themselves and from their phones.

A) Tariff:

Ufone Postpay calling tariff

Ufone Postpay provides users with matchless call plans to suit their lifestyle and connectivity drive.
Ufone Postpay for business or leisure & stay connected all the time.
Following is our tariff offering,

Postpay ZLR Postpay Postpay Postpay

Ease Value Extra

Monthly Line Rent (Rs.) 0 199 399 999

Outgoing Call Charges (per 30 seconds)

Ufone to Ufone 0.90 0.60 0.50 0.40

Ufone to Other Mobile Operators 1.15 1.10 1.10 0.90

 Ufone to PTCL & WLL Network 1.00 0.80 0.70 0.60
(Rs.)

SMS Charges

Ufone to Ufone (Rs.) 0.5 0.5 0.5 0.5

Ufone to Other Mobile Operators 1 1 1 1

(Rs.)

Free

Free Minutes 0 200 400 1000

Free SMS 0 25 50 100

Security Deposit

Local & Nationwide (Rs.) 750 1,000 1,500 2,500

International Dialing (Rs.) 2,500 2,500 3,000 5,000

International Roaming (Rs.) 15,000 15,000 15,000 15,000

International Calling Tariff

Making distances smaller
Now distances have no meaning. Ufone Postpay believes distances matter little where emotions and
relationships are concerned.
When one needs to get in touch with a loved one or a business contact no matter where they are, users can
count on Ufone Postpay to get them through, and at competitive rates.

Payment Modes
ü Cash or Credit Card
ü Pay Via SMS
ü Direct Debit
ü Using MCB ATM

Mobile Products
It’s all about U!
Experience complete convenience with,
ü Virtual Private Network
ü Call Management
ü Missed Call Notification
ü Phonebook Saver
ü Host of Infotainment and Entertainment services on cell phone.
Coverage
 Ufone aims to provide users with wider coverage, superior connectivity, clear signals & voice quality
Covering over 750 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.
It is divided into four regions, which are given below.
North
South
Central-1
Central-2
Corporate Services
Ufone provide users with high-end corporate solutions for their convenience. Whether one’s on a business
trip or in a meeting, in the country or abroad, business needs are satisfied by Ufone corporate solutions. It
offers the following features and more.
ü VPN – Personal Network
ü GPRS
ü MMS
ü International Roaming
ü Mobile Office
ü Call Management
ü Private Numbering Plan

PROMOTION:
For the promotion of product, print media, electronic media, billboards, broachers and leaflets has been
utilized for the awareness of various customers. Ufone promotes its services schemes to their users and
general public via using various types of promotion channels. Through the advertisements people get
awareness about the product and are able to choose the best one for fulfill their requirement in Mobile
Telecommunication.
Electronic media and billboards are the key sources for the promotion of Ufone. Different kind of
advertisement can be seen on Television and billboards. Ufone is also a co-sponsor of Cricket World Cup
2007 and T20 Cricket World Cup 2007 and in 2009.
Advertising campaign is special and impressive than other cellular companies, like concept, models, colors
scheme and visualizing. The advertisement of post pay has been very much attractive for the business class
customers with the slogan of endless
Major Area Focused
Ufone is providing the best quality networking in the Pakistan with its price, quality packages and
coverage.
I am conducting the research on Ufone the customer’s satisfaction is increase due to its price,
quality and coverage.
Customer satisfaction is Dependent variable
 Price, Quality and Coverage are independent variables.

SWOT Analysis of Ufone

Every Organization has some Strengths, Weakness, Opportunities and Threats. Strengths and Weakness
are the Internal Factors and Opportunities and threats are External Factors.
STRENGTHS:
o They have the latest technology as compared to any other mobile company

o As government is backing them they can get as many fund as required by them to introduce the
new technology

o Good quality service

o Pakistan's second GSM network

o Established customer base including lower middle class

o Less rate than competitors

o Only company present in all four provinces

o Highly motivated and trained work force

o Offering products like mobile office, mobile Internet and MM

WEAKNESSES:
o Less coverage in remote areas

o Not targeting the rural areas at the moment

o No proper planning to cater the excessive demand

OPPORTUNITIES:
o They can start their services in other cities of Pakistan

o As they are the subsidiary of Pakistan telecommunication limited, they can acquire as much fund
needed to improve their technology

o They can also target corporate sector

o New Technology

THREATS:
o Legal environment, government interference

o PTCL has been given license for cellular operation

o Mobilink is also going to introduce some new technology and committed to invest more in Pakistan
 o Paktel, Mobilink and Telenor phone have more coverage in different cities of Pakistan then Ufone

o High taxes are imposed on the cellular industry in Pakistan

o Paktel also now has the GSM technology that is another threat for Ufone

PEST Analysis of Ufone:

In PEST P stands for Political, E stands for economical, S stands for social and T stands for technological
analysis of industry with respect to their environment. The organization's advertising surroundings is
made up from:
1.The organization inner environment e.g. staff (or internal customers), office, technology, wages and
finance, etc. 2.The organization external-environment e.g. our external customers, agents and
distributors, suppliers, our competitors, etc. 3.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:

Political environment of Pakistan is stable in the current situation and country is not progressing in terms
of economic growth that was expected.

· Environment is investor non-friendly & telecommunication sector is under regulation.

· Before WTO implementation government already took steps in regulation of telecommunication sector.

Economic Factors:

· Marketers should consider long term and short term state of a trading market

· Inflation is being controlled by state bank and under strict eyes but unemployment rate is going up & up
with the increase of level of poverty

· Economic instability is worsening day by day as liquidity crunch is prevailing in the world

Socio-Cultural:

· As Pakistan is an Islamic country and people are very strict in case of Islam any thing against the
philosophy of Islam on either print or electronic media are treated as against Pakistan.
· Most of the people dislike anything extra-ordinary or something which sabotage their culture or
subculture.

· Companies who are targeting upper-end of market mostly published and aired their advertisement in
English language.
· In metropolitan cities women are doing work along with their other responsibilities but other than
metropolitan cities it is difficult for women to convince their parents and spouses for works

Technological Factors:

· Companies have technology with which they can compete in the Pakistan and now companies are
investing in their infrastructure to not only expand but also to upgrade their existing structure.

· Currently all companies except Zong & Instaphone are providing Multi-media Messaging Services
(MMS), General Packet Radio Service (GPRS), Virtual Private Network (VPN), Pocket Stocks, Conference
Calling, Wallpapers Animated pictures Polyphonic ring tones (WAP), and Voice Mail at low price and
Ufone is proving an addition feature that one can see TV channels on their cell.

· Ufone shifted its whole network from 900 MHz to 1800 MHz offer Value-Added Services like General
Packet Radio Service (GPRS), Multi-media Messaging Services (MMS) and Virtual Private Network (VPN)
etc

Research Methodology
We adopt the following method to collect the data
o Primary Data

o Secondary Data

o Internet

o Newspaper

o Broachers

o TV Commercials

o Questionnaire
Level of priority
o Customer Satisfaction
o Price
o Quality
o Coverage

Research Questionnaire

I want to conduct the research on Ufone. The consumer’s satisfaction of Ufone is going to increase due to
Price, Coverage and Quality.

Profile of Respondent
 Total respondent were 50

Profile Number

Student 30

Professional 10

others 10

Question # 1

Total respondent 50
Respond No of Respondent
Strongly Agree 15
Agree 18
Somewhat Agree 7
Disagree 7
Strongly Disagree 3

Question # 2

Total respondent 50
Respond No of Respondent
Strongly Agree 15
Agree 18
Somewhat Agree 7
Disagree 7
Strongly Disagree 3

Question # 3

Total respondent 50
Respond No of Respondent
Strongly Agree 9
Agree 28
Somewhat Agree 3
Disagree 6
Strongly Disagree 4

Question # 4
 Total respondent 50
Respond Respond
Strongly Agree 12
Agree 20
Somewhat Agree 6
Disagree 6
Strongly Disagree 6

Question # 5

Total respondent 50
Respond Respond
Strongly Agree 11
Agree 22
Somewhat Agree 8
Disagree 5
Strongly Disagree 4

Question # 6

Total respondent 50
Respond Respond
Strongly Agree 8
Agree 30
Somewhat Agree 4
Disagree 5
Strongly Disagree 3

Question # 7

Total respondent 50
Respond Respond
Strongly Agree 7
Agree 23
Somewhat Agree 8
Disagree 7
Strongly Disagree 5

Question # 8

Total respondent 50
 Respond Respond
Strongly Agree 5
Agree 32
Somewhat Agree 4
Disagree 4
Strongly Disagree 5

Question # 9

Total respondent 50
Respond Respond
Strongly Agree 10
Agree 24
Somewhat Agree 6
Disagree 7
Strongly Disagree 3

Question # 10

Total respondent 50
Respond Respond
Strongly Agree 13
Agree 27
Somewhat Agree 3
Disagree 4
Strongly Disagree 3

Question # 11

Total respondent 50
Respond Respond
Strongly Agree 7
Agree 30
Somewhat Agree 4
Disagree 6
Strongly Disagree 3

Question # 12

Total respondent 50
 Respond Respond
Strongly Agree 9
Agree 20
Somewhat Agree 12
Disagree 5
Strongly Disagree 4

Question # 13

Total respondent 50
Respond Respond
Strongly Agree 7
Agree 33
Somewhat Agree 3
Disagree 4
Strongly Disagree 3

HYPOTHESIS

Regression Analysis

Hypothesis;
Ho: Price, Quality and Coverage cannot cause to increase customer satisfaction.
H1: Price, Quality and Coverage can cause to increase customer satisfaction.

Variables Entered/Removed

Model Variables Entered Variables Removed Method

Price, Quality,
1 . Enter
Coverage

a All requested variables entered.

b Dependent Variable: Customer Satisfaction

Coefficient of determination.(R-Square):
Coefficient of determination of this regression analysis
is70.35% which shows that market share is 70.35% depending upon the price, quality and coverage of
Ufone. It means that 29.65% other variables which are contributing in relation to market share of Ufone.

Adjusted R Square:
 Adjusted R Square is that coefficient of determination which is we can say that, error free
result. When we deduct the standard error from coefficient of determination then we get adjusted R Square.
In this analysis adjusted R Square is71.1%.

Standard Error:
Standard error is the difference between the coefficient of determination and adjusted R
Square.
Model Summary

Std. Error of the

Model R R Square Adjusted R Square Estimate
1 .807(a) .7035 .711 .939

a Predictors: (Constant) Price, Quality and Coverage

Interpretation of ANOVA Table:

Since f calculated value is greater than f table value therefore Ho is rejected. It

means customer satisfaction depends upon the price, quality and coverage. F table value is 2.23 which is
smaller than f calculated value.

ANOVA (b)

Sum of
Model Squares df Mean Square F Sig.
1 Regression 3.119 3 1.040 1.179 .328(a)
Residual 40.561 46 .882
Total 43.680 49

a Predictors: (Constant), Price, Quality and Coverage.

b Dependent Variable: Customer Satisfaction

Research Outcomes

o According to my research most of the people are Ufone users.

o People showed satisfied behavior towards Ufone network coverage.

o People were of the view Ufone brand is charging high rates and now a days it is charging low
rates.
o They are offering messaging packages as well as call packages comparatively better then other
networks.

o The advertisement of Ufone attracts the users comparatively more.

o Most of the people viewed that CRM of Ufone is not as effective as other network.

o They introduce innovative services like call block covers etc.

SUGGESTIONS AND RECOMMENDATIONS

o Learn to listen to your customer first. Really listen to them ask what you can do help them. This is
most important step in preventing problems and the only way you can solve complaints if they come up.

o Look at all complaints about your services as an opportunity to improve. Aim to resolve any
complaint quickly and efficiently.

o Establish an environment where great service is recognized and rewarded and poor services is
challenged and rectified.

o Have a fun staff melting where good service elements are discussed and role played.

o Lead by example show respect for every person at every level in your company.

o Do things regularly to improve the workplace

Happy Staff--------------Happy Customers

o Be sure your employees are aware of your expectations clean services guidelines and knowledge of
the company’s mission necessary.

o Should encourage new products like Ufone PCO, Broad Band Services.

o It is necessary that the management must continuously develop technical and managerial skills at
all levels and stay abreast of latest technological development in the industry.