ufone pakistan

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- 1 - Applied Marketing Submitted To: Submitted By: Muhammad Faiz Un Noor Sp10-085 Faran Saeed Sp10-187 Shuja Ur Rehman Sp10-148 Hafiz Waqar Ishaq Fa09- 043 Muhammad Bilal Amjad Sp10-190

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Page 1: ufone pakistan

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Applied Marketing

Submitted To:

Submitted By:

Muhammad Faiz Un Noor Sp10-085Faran Saeed Sp10-187Shuja Ur Rehman Sp10-148Hafiz Waqar Ishaq Fa09-043Muhammad Bilal Amjad Sp10-190

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COMSATS Institute of Information & Technology M.A Jinnah Campus, Lahore.

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Executive Summary

This report gives a profile of Ufone and an insight into the Ufone Marketing

Strategy. All the functions and operations of marketing strategy are defined in the

report including; miles and snow strategy, resource allocation and blue ocean

strategy for the Ufone. This report also reflects our learning and experiences at

Ufone along with our responsibilities and the tasks that we performed. Our proposal

would be of great use to Ufone and if followed properly, it can increase the

performance of employees and finally the performance of the organization itself.

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ACKNOWLEDGEMENT

First of all we thank Allah Almighty the most beneficent and merciful who gave us strength, patience and inspiration needed

to complete this task, which is essential requirement for the completion of our project.

We would like to acknowledge,

For providing us the proper guideline for the accomplishment of our report and giving us practical exposure of work.

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Our Honorable Teachers & Loving Parents

Whose,

Love, Affection, Motivation, Patience, Support

&

Spiritual Inspiration

Give us Encouragement,

To all those People who have quenched for Knowledge,

To all those who have dedicated their lives to others,

To all of those who have served and sacrificed for

Sake of Freedom

To all of those people, who may be gone now,

But they will never be

Forgotten....

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Table of Contents

Sr. No

Contents Page

1 Introduction 62 Etisalat 73 Head Quarter 74 Mission Statement 85 Vision Statement 96 Objectives 107 Target Level of Performance 118 Time frame package 129 Allocation Resources 1310 Miles and Snows 1411 Blue Ocean Strategy 1512 As Is strategy canvas 1713 Factor Comparison 1814 Four Action frame work 2115 A New value Curve 2316 BOS 2417 Minimizing Planning risk 2518 Minimizing Search risk 28

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Introduction

In 1990, Pakistan introduced its first mobile phone service called “Paktel”.

After eleven years in Jan 29, 2001 ufone has started the operation under the

brand name of ufone of telecommunication. Afterward ufone wants to expand

his business so, the have to decide with the expansion in some cities of

Pakistan. Actually ufone head office is in the Islamabad. After the privatization

of PTCL, Ufone is now owned by Etisalat.

The government of Pakistan granted them the license of Pak Telecom

mobile limited to operate GSM 9000 all Around Pakistan. Under the

agreement, Huawei will provide its future-oriented EnerG GSM solution to

expand Ufone’s network to cover over 1,500 cities, towns, villages and all

major highways in the country.

The network also allows Ufone subscribers to enjoy high-speed wireless

data service. The GSM contract for Ufone also include Huawei’s new

generation GSM dual density BTS that feature high integrated and receiving

sensitivity to improve the network performance and lower the cost of network

construction and O&M expenditure. In addition, Huawei will provide Mobile

Soft switch solution based on the advanced R4 architecture to satisfy Ufone’s

network expansion requirements, enables the telecom service provider to

evolve into 3G smoothly.

Ufone markets its prepaid services as “Prepay”. Ufone Prepay is more

affordable. Its primary market is intended towards teenagers and students.

Postpaid services are marketed by the name “Postpay”. These services are

mainly targeted towards the business community of the country.

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- 8 - Ufone has a subscriber base of 12.49 million as of April 2007 and has

network coverage in more than 1600 citi.

Etisalat

Emirates Telecommunication Corporation - Etisalat was founded in 1976 as a

joint-stock company between International Aeradio Limited, a British

Company, and local partners. In 1983 the ownership structure changed United

Arab Emirates government held a 60% share in the company and the remaining

40% were publicly traded.

HEADQUARTER

The head office of the ufone is located in 13-B, F-7 Markaz Islamabad, Pakistan

and it covered area is 2336 cities of Pakistan, GT Road, Super Highway &

Motorway.

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Mission Statement

At Ufone we aim to provide you with wider coverage, superior

connectivity, clear signals and voice quality, where ever you are in

Pakistan. Ufone focus young generation. Ufone maintain high quality of

service (near about to boom), to increase market share and market growth

on value added services. Ufone keep you connected and giving different

packages at low prices and our employees are valuable assets for Ufone.

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Vision Statement

“To be the leading a telecommunication services provider in Pakistan by

offering innovate communication solutions for our customers while

exceeding shareholder value & employee expectations.”

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Objectives

Dimensions

Age

Our main focus is young generation.

Demands

We give services to our customers and fulfill their demands and desires.

Network

Wider coverage, superior connectivity and voice quality will be the focus for

customer.

Charges

Low charges as per as their competitors are providing.

Competitive advantage

Customer should feel convenient while using our network the best advantage

against our competitors.

Franchise

We have round about 390 franchises in Pakistan and now our focus on

multinational franchises.

Employee

As you know our employees are valuable assets for us as well as there is a

check and balance system on all of them for improvement of business.

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Target level of performance

(On Dimensions)

Area base

Our basic focus on the young generation but now we are wider in other

means you can say that we are providing our services to the business level and

multinational level afterwards our business is expand and more valuable for

our customers as well as for our employees.

Mission

Our target is to meet our mission that’s why we are working hardly and

give best services to customers and now as you know we are at international

level so we are providing suitable packages to our best customers and facilitate

them with as per as low charges so that they can achieve their target.

Signals

We are wider then us means our network coverage is good against our

competitors. Firstly, our target to meet the goal of our company that applying

the knowledge of people on the firm and then follow it with great care and then

use valuable resources to appreciate our employees on their hard work.

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- 13 - Charges

We are providing different packages at lower prices that can make call’s

easy for customers. Like 3.99rs for 500 SMS daily and just 0.49rs per 30

second to make a call to which you want!

TIME FRAME FOR PACKAGES

There are different packages provided to our convenient customers. We

feel them pride. In real, they are our valuable assets. Packages are different so

there are different charges on each packages here are some relatively charges

of now a days packages:

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Allocating corporate resources

From this figure we can see that ufone Prepay is at Stars and Postpay on Question Marks this means that ufone should advertise the Postpay more than their Prepay connections as it should also be in the Stars for higher success and to get High growth-rate and High Market Share.In the other hand ufone mobile is Dogs because their Low growth and Low market shares.

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MILES AND SNOW STRATEGY

Prospector:

In miles and snow strategy, Ufone takes place prospector. Ufone enters in the market with new ideas and new packages.

Analyzer:In miles and snow strategy, Zong takes place in analyzer. Because Zong analyze the packages of prospectors and defenders.

Defender:

In miles and snow strategy, Moblink comes under the head of defender, it analyzes the propectors and then defend it for the sake of remain live in the market.

Reactor:In miles and snow strategy, Telenor comes under the head of reactor because there is not a clear objective.

Prospector Analyzer Defender Reactor

Ufone Zong Mobilink Telenor

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Blue OceanStrategy

How to Create Uncontested Market Space andMake the Competition Irrelevant

W. Chan KimRenée Mauborgne

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Blue Ocean StrategyINTRODUCTION

Companies have long engaged in head-to-head competition in search of

sustained, profitable growth. They have fought for competitive advantage,

battled over market share, and struggled for differentiation.

Yet in today’s overcrowded industries, competing head-on results in nothing

but a bloody “red ocean” of rivals fighting over a shrinking profit pool. In a

book that challenges everything you thought you knew about the requirements

for strategic success, W. Chan Kim and Renée Mauborgne contend that while

most companies compete within such red oceans, this strategy is increasingly

unlikely to create profitable growth in the future.

Based on a study of 150 strategic moves spanning more than a hundred years

and thirty industries, Kim and Mauborgne argue that tomorrow’s leading

companies will succeed not by battling competitors, but by creating “blue

oceans” of uncontested market space ripe for growth. Such strategic moves—

termed “value innovation”—create powerful leaps in value for both the firm

and its buyers, rendering rivals obsolete and unleashing new demand.

Blue Ocean Strategy provides a systematic approach to making the competition

irrelevant. In this frame-changing book, Kim and Mauborgne present a proven

analytical framework and the tools for successfully creating and capturing blue

oceans. Examining a wide range of strategic moves across a host of industries,

Blue Ocean Strategy highlights the six principles that every company can use

to successfully formulate and execute blue ocean strategies. The six principles

show how to reconstruct market boundaries, focus on the big picture, reach

beyond existing demand, get the strategic sequence right, overcome

organizational hurdles, and build execution into strategy.

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AS-IS STRATEGY CANVAS

The strategy canvas is the central diagnostic and action framework for building

a compelling blue ocean strategy. The horizontal axis captures the range of

factors that the industry competes on and invests in, and the vertical axis

captures the offering level that buyers receive across all these key competing

factors.

The strategy canvas serves two purposes:

Firstly, it captures the current state of play in the known market

space. This allows you to understand where the competition is currently

investing and the factors that the industry competes on.

Secondly, it propels you to action by reorienting your focus from

competitors to alternatives and from customers and non customers of the

industry.

The value curve is the basic component of the strategy canvas. It is a graphic

depiction of a company's relative performance across its industry's factors of

competition.

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Factor comparison

Sr* Competing Factor UFONE JAZZ TELENOR

(you) (c-1) (c-2)

1 Price Low High High

2 Technology High Medium Low

3Voice

QualityHigh High Medium

4After Sale

ServiceMedium Low High

5Market Survey

High Low Medium

6 Adaptability High Medium Low

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Four Actions Framework

1. Four Actions Framework is a tool that helps managers reconstructs buyer

value elements into a new value curve that breaks the differentiation/low cost

trade-off. It forces the organization to ask the following four questions:

1.Which of the factors that the industry takes for granted should be eliminated?

2. Which factors should be reduced well below the industry's standard?

3. Which factors should be raised well above the industry's standard?

4. Which factors should be created that the industry has never offered?

The first question forces managers to consider eliminating factors that may

have made sense in the past, but do not add much value to buyers today. The

second question forces them to consider reducing factors that may have been

over-designed in the race to beat the competition. Hence those two questions

address the low cost side of the equation by helping companies reduce their

cost structure. The third question forces managers to uncover and eliminate the

compromises that the industry has forced buyers to make. The fourth question

helps managers discover new sources of value for buyers. The last two

questions address the differentiation side of the equation.

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BOS CURVE

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MUNIMIZING PLANNING & SEARCH RISK

Minimize Planning Risk

Question Arises in the mind of dealer from customers?

We are providing our customers Ufone MAP. This is also for the non-

customers for promotion of Ufone. In your opinion, is this is the good way to

search out the right path?

In your point of view, which telecom company gives you the best quality

service like; voice quality, signals quality etc?

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Ufone providing U cell phones now, we are going to eliminate these cell

phones. What you suggest us that should we eliminate them or not? (The

referred person is already known about U cell phones.)

When Ufone launch new package, how you react on that package, do you

adapt it quickly or after some survey?

Which telecom company gives you best technology in every field like;

booster system, signals, connectivity with internet, helpline or any other?

How Ufone gather information from their customer via internet or

questionnaire or from any primary source like; AFTAB companies?

The curve of AS-IS STRATEGY shows in the earlier stage.

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After minimizing planning risk survey look like as

Sr. No. Factors High/Low

1 Price low

2 Technology High

3 Voice High

4 After Sales service Medium

5 Market survey Medium-high

6 Adaptability Medium

7 Ufone Map High

The curve of AS-IS STRATEGY is shown after minimizing planning risk survey look like as;

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- 29 - Minimize Search Risk

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Minimize the search risk

1. LOOK ACROSS ALTERNATIVE INDUSTRIES:

What are the alternative industries to your industry? Why do customers

trade across them? By focusing on the key factors that lead buyers to trade

across alternative industries and eliminating or reducing every thing else, you

can create a blue ocean of new market space.

2. LOOK ACROSS STRATEGIC GROUPS WITHIN INDUSTRIES:

What are the strategic groups in your industry? Why do customers trade

up for the higher group, and why they trade down for the lower one?

3. LOOK ACROSS THE CHAIN OF BUYERS:

What is the chain of buyers in your industry? Which buyer group does

your industry typically focus on? If you shifted the buyer group of your

industry, how could you unlock new value?

4. LOOK ACROSS COMPLEMENTARY PRODUCT & SERVICE

OFFERINGS:

What is the context in which your product or service is used? What

happens before, during and after? Can you identify the pain points? How can

you eliminate these pain points through a complementary product or service

offering?

5. LOOK ACROSS FUNCTIONAL & EMOTIONAL APPEAL TO

BUYERS:

Does your industry compete on functionality or emotional appeal? If you

compete on emotional appeal, what elements can you strip out to make it

functional? If you compete on functionality, what elements can be added to

make it emotional?

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- 31 - 6. LOOK ACROSS TIME:

What trends have a high probability of impacting your industry, are

irreversible, and are evolving in a clear trajectory? How will these trends

impact your industry? Given this, how can you open up unprecedented

customer utility?

Minimize the search risk

Strategic group:

Sms bundle for youth Call packages for middle age Both high and middle society

Functional & emotional appeal:

Call to relative & friends emotional appeal Call for business purpose functional appeal