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Marketing Strategy
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UFONE
Name: Hamza Arshad

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Roll No: 21-10569
BUSN 280
Section : B

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Introduction of Telecommunication Industry: Telecom industry, collection of all the industries
and companies providing phone service, data or entertainment to consumers and businesses, is
the fastest growing industry in Pakistan today with highest per year growth rate in tele-density
worldwide.

Due to high growth rate this industry has become back-bone of Pakistan’s economy. Along with
opportunities, this industry also provides vast facilities to communicate and connect globally in
better, reliable and modern manner. Today IT sector of Pakistan can be considered as most
developed industrial sector of Pakistan.

In 2008 Pakistan was the world's third-fastest growing telecommunications market. Pakistan's
telecom infrastructure is improving dramatically with foreign and domestic investments into
fixed-line and mobile networks; fiber systems are being constructed throughout the country to
aid in network growth. The major growth in mobile telephony was triggered by two steps taken
by Prof. Atta-ur-Rahman FRS when he was Federal Minister of Science & technology. These
were to introduce a "Calling Party Pays" (CPP) regime under which no charges are paid by the
call receiving party on mobile phone calls. The second was the launching of Ufone as a
government owned mobile phone company that competitive call rates that led to strong market
competition.

Popular Telecommunication Companies in Pakistan: 1: Pakistan Telecommunication Co

Ltd (PTCL), 2: Mobilink, 3: Ufone, 4: Telenor, 5: Zong, 6: Warid, 7: Worldcall, 8: Wateen

UFONE: PTML is a subsidiary of PTCL (Pakistan Telecom Company Limited), the largest
operator in Pakistan. PTML was established to operate cellular telephonyThe company
commenced its operations under the brand name of Ufone from Islamabad on January 29 2001.
During the year, as a consequence of PTCL’s privatization, 26% of its shares were acquired by
Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of
Ufone has also been handed over to Etisalat.

Since its inception, Ufone has focused on the people of Pakistan, empowering them with the
most relevant communication modes and services that enable them to do a lot more than just
talk, at a price that suits them the most. UFONE came in the market when it was mainly
captured by Mobilink and InstaOne. It was a difficult task to become a part of such a market in a
country like Pakistan where people were not aware about mobile phones and it was a status
symbol at that time. Ufone changed the whole scenario and as soon as it came in the market it
provided with very cheap mobile connection and calling rates which were offered neither by
MOBILINK nor by InstaOne. Along with the claim of lowest call rates, clear sound and best
network, Ufone offered its customers simplified tariffs with no hidden charges. With a strong and
uniquely humorous communication direction that has now become Ufone’s signature across all
advertising media, Ufone gives its customers many reasons to smile.

During the year July 2005 to June 2006, further expanded its coverage and has added new
cities and highways. Ufone has network coverage in more than 750 cities, towns and across all
major highways of the country. This customer focus and best offering has allowed Ufone to build
a subscriber base of over 20 million in less than a decade. Ufone has network coverage in
10,000 locations and across all major highways of Pakistan. Ufone expanded its coverage and
has added new cities and highways to its coverage network. The company has also been
awarded a new License for providing cellular services in Azad and Jammu Kashmir and in
northern areas. Ufone currently caters for International Roaming to more than 260 live operators
in more than 150 countries including Saudi Arabia , United kingdom, UAE, Singapore, Portugal,
Kuwait and others with lowest rates, featuring no security deposit and activation charges. Ufone
also offers Pakistan’s largest GPRS & BlackBerry Roaming coverage available with more than
150 Live Operators across 105 countries. More recently, Ufone has become a focused and
intensive leader in VAS, constantly introducing innovative services, which have been the first of
their kind in the Pakistani cellular industry.

Mission: Ufone’s mission statement is “To be the best cellular option for you”

Vision: “Be the leaders of the cellular companies in telecommunication sector in Pakistan”

Market Segmentation: Cellular service market is a diverse set of people. Ufone as well as
other cellular service companies segment their market on four bases: - economy, age, gender
&occupation.

Ufone’s Target Marketing Strategy: Ufone has always been targeting Youth Market by using
young brand endorsers or ambassadors. It always brings such packages and offers that
precisely meet the needs of our young people. No doubt it has also launched packages, brands
and offers for working people, business class, ladies and aged ones. Ufone seeks to target
masses in the long run.

Ufone’s Positioning Strategy: 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” on the basis of services it is providing and its
lowest call rates. It makes them believe that it satisfies the needs of everyone (all classes, age
& genders). It tells them that Ufone is there when anybody needs it. The brand name UFONE
itself is a positioning statement. Its positioning statement is “Ufone Tum Hee to Ho” or “It’s All
About U”

Differentiation Strategy: Ufone has always strategized in satisfying the demands of its
customers. In doing soit has been successful in differentiating itself in terms of:- 1:Price,
2:Quality service, 3:Technology

Customer Relationship Strategy: Ufone strategize to build and maintain strong customer
relationships in order to build long-term customer loyalty and to capture customer lifetime value.
In this context Ufone has been training its internees and permanent employees in the fine art of
interacting with customers. It is also strategizing to offer gifts & rewards for its long-term
customers in its Post Pay to match the wonderful customer relationship strategy of INDIGO.

Total Market Orientation: Ufone has always considered the ever growing needs of low call
rates and quality service. It has provided its customers their needed packages and
has introduced such brands & packages that meet customer’s latent needs as well. For example
5 ka15 is result of a latent need of women of our society. They plan to make a short call but it
becomes a long one unintentionally due to gossips and chit chats.

Competing Strategy: There is a hard core competition among the cellular service providers in
Pakistan. Ufone is a market challenger in its competitive position, where MOBILINK is the
market leader. Warid, Telenor and newly introduced ZONG are also strong contenders in
market challenger category. Ufone has the following four direct competitors: Mobilink, Telenor,
Zong, Warid. Ufone’s competitive strategies are Customer intimacy and Differentiation. Ufone
aims at fore passing Mobilink in its competitive race.
Marketing Mix: The marketing mix of Ufone is as follow (4ps).

Product: Ufone is a service providing company. Service is any intangible product that consists
of activities, benefits or satisfactions offered for sale. Ufone makes strategies to provide a better
cellular telephonic service which excel sits competitors at all levels. When Ufone launches
a new package in a market, it actually makes it a complete package of core benefit, design,
features, brand name, quality, and after sale service.

Price: Cellular service providers are facing intense price competition in contemporary market.
Customers perceive pricing as the heart of brand selection. Price has always been the core
differentiation of Ufone. Ufone is the one who is offering least call rates off-network. Ufone
strategize to capture the existing pricing needs of its customers and use it well on occasional or
timely basis. For example Ufone offered very good call rates on international calls in Eid days. It
offered hourly call rates in Ramadan when people were least likely to avail the offer that much
that it might prove unprofitable for Ufone. It was a fantastic strategy to beautify the brand image
in term of pricing in customer’s minds as well as remain profitable in doing so. Ufone follows
market penetration pricing strategy and dynamic pricing strategy to meet the customer needs
and ever changing price competition.

Place: Place plays a very important part in the distribution and promotion of services.
Competitors of Ufone are seeking to penetrate into places where others haven’t
reached. Mobilink has this edge in place excellence because it is the pioneer in cellular
telephonic field. Ufone strategize to widen its coverage to all places in Pakistan in order to meet
the requirements of its increasing customer base. Now Ufone is heading from cities to remote
northern areas in expanding its network. Ufone has intensive promotion in cities, but it is also
considering improving its promotion in rural areas as well.

Promotion: Ufone believes in Integrated Marketing Communication which is a carefully blended

mix of promotion tools. Ufone employ different marketing activities and channels to
communicate and deliver value to customer. These activities are coordinated to provide
maximum communication output. These communication channels includes:-Advertising, sales
promotion, public relations, direct marketing & personal selling. 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. Ufone strategize to carry out promotion in order to increase its market share.

Conclusion:

By keenly analyzing the marketing of ufone, it can be said that ufone is not a safe player in the
market. It is penetrating its market by taking risks and aggressively promoting and advertising
itself. It holds second largest market share and is seeking to become the market leader anyway
possible.

Ufone is using humorous theme in its ads which has become its benchmark. People enjoy
watching and discussing and following Ufone ads the most. And it is the biggest achievement of
ufone in recent times.