Ufone Report
Ufone Report
UNDERSTANDING MANAGMENT
PROJECT REPORT
BHS III
Group Members
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DEDICATION
We would like to dedicate this project to our parents who has given us chance to study
here in Fatima Jinnah Women University, and to our respected teachers who give us an
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TABLE OF CONTENTS
Abstract ………………………………………………………………………5
Acknowledgement……………………………………………………………6
Objectives …………………………………………………………………….7
Introduction…………….…………………………………………………...8
Background of industry……………………………………………………….8-9
History………………………………………………………………………. 9-10
Goals of HR department……………………………………………………13-14
Headquarter ………………………………………………………….....……14
Mission...………………………………………………………………..……15
Vision…………...………………………………………………………...…..16
Brand...………………………………………………………………………..17
Performance.…………………………………………………………………17
Departments………………………………………………………………….18
Products.………………………………………………………………………18
Prepaid………………………………………………………………………..18
Packages……………………………………………………………………..19
Postpaid ……………………………………………………………………...19
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SMS Packages………………………………………………………………20
Price………………………………………………………………………..20
Promotion…………………………………………………………………….21
Slogan ……………………………………………………………………….23-24
Competitor …………………………………………………………………...24
Mobilink …………………………………………………………………....24-25
SWOT Analysis……………………………………………………………....29
Strength ……………………………………………………………………...30
Weakness ………………………………………………………………….....31
Opportunities ………………………………………………………………..32-33
Threats ……………………………………………………………………….34
Target Market…………………………………………………………….......35
Research Methodology……………………………………………………….36
Conclusion …………………………………………………………………...39
Reference ……………………………………………………………………..40
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ABSTRACT
Ufone is the second largest cellular network in Pakistan. Ufone's main office is located in
13-B, F-7 Markaz Islamabad, Pakistan. Every organizational whether its multinational,
private business or government. Offices depend on their people. The telecom industry in
Pakistan is growing and new companies are getting licenses, although consumers are
benefiting as a result of this and are enjoying lower call rates. With a population of 15
million countries, Ufone is the best telecommunications network that generates revenue.
The Ufone company started its operations from Islamabad on 29 January 2001 under the
brand name Ufone. Ufone offers two types of services which are Ufone Prepay and Post
pay. In postpaid they offer a lot of packages such as Uvon, Ushare. They provide a black
berry, payment choice, value added service etc. in public demand etc. post paid.
Ufone has always played an important role in the development of the cellular market in
Pakistan. It has been one step ahead in introducing an innovative product in the market.
Ufone adopted a simplified tariff policy without any hidden charges. Ufone targeted the
middle class by introducing lower rates. Ufone has network coverage in over 5885
locations and all major highways in the country. Mobilink has 910,000 subscribers and
Ufone has 565,000 customers. The region has a 70.64% annual growth according to the
latest marker survey. So when Ufone will change its technology the market is open for
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them as their prices are low and they are catering for the middle and lower middle class
ACKNOWLEDGEMENT
First of all we are thankful to Almighty ALLAH for giving us much cooperation and
supporting parents who has given us this opportunity to study here. I would like to thank
our instructor of our university course Understanding Management Sir Tanveer Abbas for
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Objectives
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Introduction
Today information has become the most vibrant force and factor of production in the new
Liberalization of the telecom sector began in Pakistan in the early 1990s. The defining
moment was the Telecom Re-Organization Act of 1996, which established the Pakistan
Telecom Authority (PTA) as the region's independent regulator and set a time limit for
With the deactivation of the telecom sector in Pakistan in the early 90s, the Ministry of
technology. Paktel and Instaphone were formed as a joint venture between foreign and
local partners. InstaFone started its services in 1990, while Pak started operations in
1992. Both companies were using amps technology. A year later, the Saif group was
awarded a third license, resulting in the launch of Mobilink, which began its services in
1994. It was the first company to introduce GSM technology in Pakistan. In 1995, the
cellular industry suffered a major setback with the closure of operations in the largest
market, Karachi, but was approved for closure after almost two years. On January 19,
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2001, PTCL entered the cellular market with an operator based on GSM technology
In April 2004, Pakistan Telecom Authority (PTA) awarded two new licenses under the
open auction process for a fee of $ 291 million. These were bought by two companies
Warid Telecom and Telenor. Telenor commenced operations on 15 March 2005. Al-
Background of Ufone
The company started its operations from Islamabad on 29 January 2001 under the brand
name Ufone. Ufone expanded its coverage and added new cities and highways to its
During the year, as a result of PTCL's privatization, 26% of its shares were acquired by
Emirates Telecom Corporation (Etisalat). Being part of PTCL, the management of Ufone
has also been handed over to Etisalat. Through the years, Ufone continued on the road to
success. The company further expanded its coverage and added new cities and highways.
Ufone has network coverage in over 5885 locations and all major highways in the
country.
During the year, Ufone adopted a simplified tariff policy with no hidden charges,
resulting in a positive impact on the customer usage trend as well as the total customer
base, which has grown to 19.4 million. Ufone currently caters for international roaming
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to more than 230 live operators in over 130 countries and prepaid customers in Saudi
Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal, Thailand, Cyprus,
Lanka, Belgium and Kuwait at the lowest rates, with no security deposit and activation
fee. The GPRS roaming facility is available in 85 countries with more than 115 live
operators.
0 The company has also been awarded a new license to provide cellular services in Azad
History
In 1990, Pakistan launched its first mobile phone service called "Paktel". After eleven
years in January 2001, a new cellular company with GSM technology came to market
and they named it Ufone. Pakistan's government limited Pak Telecom mobile license to
quality service at low rates. After its inauguration, he initially began his service in major
cities such as Rawalpindi, Islamabad, Karachi and Lahore and on major highways. Later
the service expanded to other major cities such as Peshawar, Quetta and various cities.
Ufone invested $ 65 million to provide high-quality crystal clear voice and fast data
transmission to its modern technological infrastructure. Ufone targeted the middle class
by offering lower rates and different packages with Urdu names like Jazbaa etc. to attract
the lower and middle class people. Ufone has expanded its customer support in a very
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systematic way with a planned network of dealers, which is convenient for the people.
Ufone remains committed to caring for its customers even after acquiring a new
connection. Ufone not only focuses on technical capabilities, but also provides
convenience for consumers to obtain connections and services. Ufone has recently
launched GPRS through which users can connect themselves to a global village through
the internet, they have also introduced multimedia messaging services and SMS
worldwide at flat rates. Not only SMS but also provides Ufone Info service through
which users can get latest information about news, sports, religion, horoscope, stock
exchange etc. even live sports updates. The tariff packages are designed keeping in mind
the needs of every section of the society which can be a housewife, taxi driver,
Islamabad. Before the launch of Ufone, the performance of the cellular industry in
Pakistan was quite disappointing, with the lowest population penetration rate
Entire area. From day one, Ufone's strategy was to change the landscape and ensure that
mobile phones are transformed into everyday business and personal communication
devices. This approach revolutionized the market; Its size increased five-fold in two
years.
The performance of ufone in these two years has been exemplary, as it outdone 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
the headquarters
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And this covered area is 2336 cities of Pakistan, GT Road, Super Highway and
Motorway.
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Objectives of Ufone
2. Security:
The data is protected from unauthorized personal. The authorized manager is only
allowed to access with the help of given Password/Code; previously the data was
being stored in paper file. So there was a possibility of unauthorized access.
3. Accuracy:
The database management system ensures accuracy. The system does not allow
entering information in undefined way. The result generates accurate results since
the information is valid and up to date.
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Structure of Ufone
Keeping in view of all these factors the structure of Ufone is designed i.e. the overall
Structure of the Ufone is Divisional (More flexible and innovative). Mainly Ufone has
four regions and within those regions the structure is functional .The decision making
authority is centralized at the top but within the regions it is decentralized i.e. regional
heads have to inform top management before making any decision.The structure of
Ufone is given under.
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HR hires the best people to work and adjust them into these four departments according
to their specialization. HR conducting its best practices to recruit, train and motivate their
employees.
HR Department
Training
& HR Outsource
Development Operations Operation
There are three Sub units of Human Resource Department at Ufone which are given as
following;
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Recruitment.
Policy & Procedures Development.
Employees Data Management.
Employee Benefit & Compensation.
Training & Development.
Employee Motivation
Retention of Employees
Career Planning/ Succession Planning
Employee Relations/ Communication
Employee Awards
Employee Events Management
Medical & Life Insurance
Senior Manager HR
HR Manager
Assistant Manager HR
Senior HR Executive
HR Executive
The senior manager and the assistant manager are responsible for the training and
development functions of the organization. They take main decisions regarding the final
hiring of the employees and the pay and rewards packages allocated to them. They are
also responsible for the establishing of the performance evaluation criteria. The manager
and the executives are responsible for the operations. But besides taking care of the day-
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to-day operations, they perform the function of recruiting and staffing as well.
Conducting the job analysis for each job is also the responsibility of the manager and his
executives.
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directly, tap the knowledge of all who can contribute to problem resolution
wherever in the organization Are).
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Mission
... At Ufone we aim to provide you with wider coverage, better connectivity, clearer
signal and voice quality. Wherever you are, Ufone keeps you connected. "
The vision
communication solutions for our customers while exceeding shareholder value and
employee involvement."
an objective
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Ufone because it is a dynamic organization with a powerful culture that allows people to
make the most of their skills, personality and career. I developed the knowledge and
customer service
Ufone is proud to receive an efficient and friendly customer service through 21 company-
owned sales and customer service centers and around 250 franchisees nationwide. Outlets
are able to serve customers with innovative solutions, and empowered with web-based
franchise management systems. Ufone is ready to face the growing market challenges
and is confident that it will attract new customers. It has the ability to maintain its
existing customer base with optimum network service and high level of customer
Ufone Sales & Service Centers has been set up to provide you quality services to all
under one roof, so that you can run any of the Ufone Sales & Service Center services
like:
O connection purchase
O bill payment
o SIM activation
o change of numbers
o Change of address
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O sim replacement
O change of ownership
o Connection closed
O gprs
O IR activation
o call forwarding
O conference call
The brand
Keeping its tradition of being a trend setter in the industry, Ufone changed the image of
mobile phones from a luxury only affordable by the elite, to a cheaper necessity by the
common man. Since its inception, Ufone has deployed its brand to the public.
Considering the upcoming competition and market dynamics, with the prep brand, Ufone
focused its attention on the younger segment (which comprises 50% of the population).
campaigns, which further increased brand equity. The new brand image gained huge
marketing research company showed that Ufone has significantly increased its brand
visibility and image. Ufone's prep brand is now considered one of the most preferred
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brands by the youth market and is followed by other mobile operators launching their
Display
As mobile users in the country have risen to over 28 million at a very rapid pace, Ufone
has maintained itself as the second largest cellular operator in Pakistan with a market
share of around 6.5 million and about 25%. Ufone has seen a customer growth rate of
over 200% in the past year, and since the beginning of 2005 Ufone added about 5 million
fact that in 2005 two new international players also entered the market. Subsequent
increase in customer base led to a healthy trend in revenue which has doubled.
Department at Ufone
Marketing Department
Commercial Department
Sales Department
Finance Department
Payroll Department
Engineering Department
Administration
Auditing Department
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Customer Care
Product
Ufone offers both prepaid and postpaid services. Following are the services of Ufone.
Prepaid
Ufone markets its prepaid services as "prepaid". Ufone prep is more affordable. Its
primary market is for teenagers and students. Following are some prepaid packages of
Ufone.
The packages
Prep life
Life value
Passion
Life of UCircle
Urock
Public demand
Panch ka Pandara
Hour package
Uwon
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Post paid
Postpaid services are marketed under the name "Postpay". These services are mainly
Sms package
Value
Compared to other telecom companies, Ufone offers its services with lower and cheaper
rates. The price of the product in the market matters but meeting the low price with high
density service is not an easy task. Ufone merged high-density services with low prices
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Promotion:
For the promotion of the product, print media, electronic media, hoardings, brochures and
leaflets have been used for the awareness of various customers. Ufone promotes its
services / schemes to its users and general public using a variety of promotional channels.
Through advertisements people gain awareness about the product and are able to choose
Electronic media and hoarding are major sources of promotion for Ufone. A variety of
advertisements can be seen on television and billboards. Ufone is also a co-sponsor of the
companies, such as concept, model, color scheme and visualizing. Post pay advertising
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has been very attractive to business class customers with slogans of endless possibilities.
Cards Review
Market share
With an average monthly total of around 2.5 million subscribers, 2007 was an
unprecedented year for the growth of the mobile market in Pakistan. A look at the
numbers (from the PTA site) for the first 8 months of 2007. A quick analysis of this data
reveals some trends regarding market leadership. Mobilink gained the most subscribers
(5.45 million) in this period. Its market share is gradually decreasing but it is expected
with increasing competition. Telenor was the fastest growing company, receiving 45% of
its subscribers (5.35 million) this year. There is no doubt that Telenor has emerged as a
strong contender. It took a small lead over Warid in March and was able to maintain it.
The growth rate for Ufone has been impressive as well. It gained 5.32 million of about 20
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million new customers in the first 8 months of this year in Pakistan. Paktel has barely
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SLOGANS
One of the main reasons of the popularity of the Ufone is to use slogan to attract the
customers. The Slogan of Ufone in Urdu is “Ufone Tum Hi to Ho", In English "it’s all
about U”
Competitors
Mobilink (Jazz)
Telenor
Zong
Warid
Mobilink (Jazz)
Mobilink GSM a subsidiary of Orascom Telecom started its Operations in 1994 and has
become the market leader both in term of Market Share and also the largest customer
subscriber in Pakistan. To achieve the objective they offer both post pay (Indigo) and
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Jazz is an amazing prepaid service that allows freedom from monthly bill and gives
complete control over the customer’s cellular expenditure. The user can decide in
advance when and how he wants to spend. He can load a scratch card whenever he wants
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Here in this section we are going to describe the strategic management process that was
used by Ufone, while there was a slight change in their target customers. According to
our data Ufone was interested in postpaid services at the beginning of their business. In
other words their target market was business people.
Step 1:
Current business and mission
Ufone's main function at that time was to serve the corporate class. Their services were mainly
on postpaid packages. On the other hand they were not targeting their prepaid services for
specific segment of the market.
Step 2:
Internal and external audits
The Ufones HR department conducts internal and external audits to find out the problems
and opportunities they can take to gain more market share and retain their customers. Due
to severe competition by Mobilink at that time in postpaid services, Ufone was not able to
gain large market share as per the plan. He had to change his strategy.
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Internal Audit: At that time Ufone didnt have a competent workforce that can
face Business People or Postpaid services compared to its competitors.
External audit: Pakistan has a higher percentage of youth of the total population.
Ufone was a state-owned company at the time and had access to the PTCL
network. Ufone used this thing as its competitive edge and brought in SMS
services for the youth.
Step 3:
New Strategies and Mission Statements
Ufone launched new services for youth at the core of You Attitude. Like his slogan was
Ufone Tum Hi Tu Ho or It's All About You
For u to become the best cellular communication option available in the country. Ufone
only wants to provide the best services and packages to its customers, offers them the
packages and services that people want and says about Ufone U.
Step 4:
Step 5:
Devise strategies
To achieve this goal of maximum market share in the market, Ufone opted for a low cost
strategy and introduced low cost for the youth of Pakistan. Low call rates and the best
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coverage are also helpful in grading other age groups. Every new service was at a lower
cost than rivals.
Step 6:
The implementation
In the implementation Ufone introduced SMS packages in which the user can debit their
account to receive SMS for a specific time period, off-net and on-net at the least cost.
Low call rates and other value-added services were also made available to all customers.
Step 7:
Evaluation
The Ufone HR department used to evaluate the company's performance, and after the
implementation of this implementation strategy when Ufone's performance was analyzed, they
found that the Ufone market share had increased from 21% to 39% and its popularity. Had
increased.
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SWOT ANALYSIS
Strength
Ufone has network coverage in over 750 cities across all major highways and
across 79 countries.
company-owned sales and customer service centers and around 250 franchisees
reliability. Therefore, Ufone has always balanced its expansion efforts and quality
When mobile users in the country have grown at a very fast pace to over 78
million, Ufone has maintained itself as the second largest cellular operator in
Pakistan with a subscriber base of around 22 million and a market share of around
25% is.
Ufone has seen customer growth rate of 200% in the last year.
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In keeping with its tradition of being a trend setter in the tradition industry, Ufone
changed the image of the elite mobile phones by the elite to a cheaper price for
Brand Ufone focused its attention on the youth segment (comprising 50% of the
Ufone has the ability to maintain its existing customer base with maximum
network service and customer satisfaction through 24 hours call center facility.
It has post paid service which is usually to attract business class people. Most
businesses and elite people use post paid and other services offered by Ufone.
Ufone was the first cellular company in Pakistan to introduce GPRS service and
Ufone has some exciting and energetic SMS packages that have made SMS
almost free.
Packages Ufone has some very exciting and low call packages like "5a ka 15", "u-
one", u Circle "," U fone ghanta "," U fone has some very exciting and less call
packages like "5a 15.", "U-One", U Circle "," Ufone Piglet "," U Phone Life
Package "and" Prepay Public Demand "etc. which attract a lot of customers and
Is Ufone Post also offers a paid Black Berry set that is useful and attractive for
business classes.
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Weakness
Ufone does not have a proper list of its customers. It has a list but this list is not
authentic which is increasing the unauthorized use of its SIM especially prepaid.
Franch has many franchisees across the country but as its customers grow day by
day, its current franchise is not sufficient to cater to the needs of its customers.
Ufone also faces problems and its network gets jammed on special occasions like
Its coverage on the southern part of Pakistan is quite good but its coverage in the
Being a part of PTCL, it has to face many problems like strike by employees etc.
When Ufone was seen in the cellular market of Pakistan, Mobilink was already
prevalent in the market and at that time it was all Mobilink monopoly. Though
with the passage of time, Ufone took many of Mobilink's customers, but Mobilink
still has a large number of users as it was previously in the cellular market of
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Problems Ufone suffers from some internal problems such as when it is part of
PTCL being privatized EtCLalaat Many employees were not happy with the pay
Opportunity
Ufone can develop some new and innovative services to attract customers and
some suggestions are that will help them to increase their revenue:
Ufone should develop some new franchises in remote areas so that people get the
maximum benefit from it and this will help in increasing their customers.
As Pakistan has about 50% of the youth population, so Ufone can take advantage
of this demographicThe situation should introduce more and more services and packages
that attract youth towards it. These services can be a video call facility.
Ufone should expand its network coverage area in the northern part of the
country.
It should also offer some packages for internet users on mobile, if this happens
Ufone should import technical equipment from China as they are offering the
best technology at very low rates, so it will not only help keep Ufone technically
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One Ufone can surprise its rivals by introducing "U fone kiosk". These will be
like ATM machines and will provide 24-hour service to UFOn subscribers so that
Threat
As there is a cut throat competition between Ufone cellular company and cellular
companies in Pakistan. Six other companies are also operating in Pakistan, so Ufone will
Pakistan is now facing some serious economic problems during its critical days so that
Ufone is also affected. The current slowdown in the market is not good for any type of
has network coverage under threat due to critical situation and operations. U phone
investment is in danger.
Ufone entered the market quite rapidly from 2005 to 2006 but since then it has
cellular industry, Ufone and other companies will now face severe competition.
As Jong is offering some different attractive packages of both SMS and calls to
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attract customers. Ufone has to develop strategies to counter its strategy and
The major threat to One Ufone is also some adverse government policies to
impose tax on the telecom industry which will eventually affect revenue.
There are some rumors about PTCL shares in the Rum market. Being a subsidiary
Its Telenor is giving its employees a higher rumen than the boom, so that many of
its skilled and capable employees are moving there. This will affect the
Some pressure groups are protesting on the towers installed in residential areas.
He is of the opinion that it is not good for the health of the people that they should
Ufone will have to revise the list of customers who are legal and authorized.
Because now the government has warned that if no company will keep such a
record.
Target market
There is a target market for youth in the nation. This target market of youth comprises
40% of the population. Ufone has targeted the corporate class, for which Ufone is
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Targeting: They are mainly targeting the youth, if we look at their advertisements,
Research Methodology:
Primary data
Secondary data
internet
newspaper
Broachers
TV Advertising
questionnaire
interview
Priority level
low cost
package
Customer services
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Cellular Subscribers
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CONCLUSION
The telecom industry is the largest industry in Pakistan, which still requires heavy
investment for coverage. There is also strong competition in the market following the
People are worried about call rates not liking a particular company. The consumer
searches for the best service with the lowest call rates, although companies are reducing
call rates this will lead to greater market growth. Ufone bring amazing packages to attract
internet etc. People's choice is Ufone because the price level of Ufone is low and
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Reference:
www.ufone.com
www.pta.gov.pk
www.pakboi.gov.pk
www.telecompk.net
Broachers
TV Commercial
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