Adnan Saeed Initial Pages

An Internship Report On (Ufone)

SUBMITTED BY ADNAN SAEED

REG # F005-BBA-096 BBA (HONS) MARKETING

SUPERVISED BY DR WASEEM IKRAM

DEPARTMENT OF MANAGEMENT SCIENCES COMSATS INSTITUTE OF INFORMATION TECHNOLOGY ABBOTTABAD Session 2005-2009

An Internship Report On (Ufone)

According to the requirements of H.E.C. Internship report is submitted to COMSATS Abbottabad, for the completion of 16 year’s education in Business Administration.

DEPARTMENT OF MANAGEMENT SCIENCES COMSATS INSTITUTE OF INFORMATION TECHNOLOGY ABBOTTABAD Session 2005-2009

ii

APPROVAL SHEET

An Internship Report On UFONE SUPERVISED BY: Name: Signature: Designation:

EXAMINER: Name: Signature:

H.O.D:

DEPARTMENT OF MANAGEMENT SCIENCES COMSATS INSTITUTE OF INFORMATION TECHNOLOGY ABBOTTABAD Session 2005-2009

“DEDICATION” iii

To my Parents, Teachers and especially to my dearest friends(Saleem Raza, Obaid-ul- Mohsin,Qasim Irshad, Hafiz Mohsin)

Abstract iv

In the last quarter of twentieth century, telecommunications became the central nervous system of any economy. It has also made a widespread impact on social life in the country, whereby it is not only facilitating common man's communication needs but is also providing accesses to areas which were never connected before. This overwhelming growth of cellular phones in a developing country like Pakistan is also creating a win-win situation for investors in this sector inspite of the fact that cellular penetration in metropolitan cities has reached its maximum. Ufone is a wholly owned subsidiary of PTCL. 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. Six weeks internship with effect from February, 2009 to March, 2009 was conducted at Ufone franchise Mandian Abbottabad, as the fulfilment of the course requirement of the degree of Bachelors in Business Administration COMSATS Institute of Information Technology. This report is based upon the findings related to the company’s operations in general and specifically in the Sales and Marketing. The main sources of information were participation in the work, observation of the operations and interviews with the staff members, a small survey and interviewing the customers of Ufone. This was complimented with data gathered through the company’s website (www.ufone.com) & PTA’s website (www.pta.gov.pk).

The data was analysed in comparison with the

contemporary practices related specifically to Marketing and generally on the whole along with the SWOT (Strengths Weaknesses Opportunities Threats) analysis of the company. Conclusions were drawn upon the information gathered and analysed and recommendations are presented at the end that suggest possible ways of improving the current company practices. The first chapter states the purpose of the report and the aim of the research study, as the fulfilment of the course requirement of the degree of bachelors of Business Administration.

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The second chapter introduces the organization; Ufone, historical background, general information related to the company, the products it offers; postpaid, prepaid, the Administrative structure, core values and the financial information. The third chapter covers the Sales and Marketing activities of the organization. Starting with a brief overview of the 4ps, it follows through with details about the four basic functions of the Marketing; Product, Pricing, Placement and Promotion. Chapter four consists of the analysis of the report and findings. The analysis was conducted in comparison with the contemporary practices related specifically to Marketing. A SWOT analysis of the company provided a base for some suggestions that have been made in the subsequent chapter. The survey findings and its results are also discussed in this chapter. Last part of the report consists of some recommendations and suggestions that I have given. My 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. Conclusion and Recommendations are presented in the last chapter which is based upon the analysis of the data and findings of the study.

Table of Contents vi

Acknowledgements

xiii

Abbreviations

xiv

Executive Summary

xv

CHAPTER 1

Page No

Introduction to report 1.1

Introduction …………………………………………………………...…..……

1

1.2

Internship Objectives ………………………………………………….……….

1

1.3

Scope of Study …………..…………………………………………………….

1

1.3

Methodology ………..……………………………………………………….…. 2

1.3.1 Primary data

………..………………………………………...……………...

2

1.3.2 Secondary Data ….…..……………………………………………….…….

2

1.4

Merits ……..…………………………………………………………….………. 3

1.5

Demerits ………..………………………………………………………………. 3

Chapter 2

Page No

Introduction of telecom industry 2.1

Introduction ….…..…………………………………………….……............... 4

2.2

Mobile Subscriber ….…..…………………………………………….……...... 5

2.3

Telecom Sector In Pakistan ….…..…………………………………………… 6

2.4

Forecast ….…..…………………………………………….……...................... 8

2.5

Advantages of developing Telecom Industry ….…..………………………

9

2.5.1

Increased Tax Collection ….…..………………………………………….

9

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2.5.2

Increased Employment Opportunities

….…..……………………………

9

2.5.3

Development of Rural Areas ……..………………………………………

10

2.5.4

Foreign Direct Investment (FDI) …...…………………………………….

10

2.5.5

Increased GDP …….…..…………………………………………….……

10

2.6

Introductions and History of Ufone ….…..………………………………..

11

2.6.1

Introduction of Ufone Franchise Abbottabad …...………………………..

13

2.7

Core Values …..……………………………………………….……........

13

2.7.1

Company Mission Statement …...………………………………………..

13

2.7.2

Slogan ….…..…………………………………………….…….................

14

2.7.3

Performance .…..…………………………………………….……........

14

2.8

Departments of Ufone ….…..……………………………………………..

14

2.9

Ufone Management Team .…..…………………………………………

15

2.10

Management Hierarchy ….…..……………………………………………

17

2.10.1 Management hierarchy Explanation ……………………………………. Chapter No. 3

18

Page No

Marketing 3.1

Introduction ….…..…………………………………………………….….

19

3.2

Products and Services Offered by Ufone .…..………………………….

19

3.2.1

Post Paid Connections ….….…………………………………………..

20

3.2.2

Prepaid Connections ….….…………………………………………..

23

3.2.3 Value added services ……..………………………………………………

26

3.2.3.1 Short Messaging Service (SMS) & International SMS ……

26

3.2.3.2 Caller Line Identification (CLI) …………………………………..

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26

3.2.3.3 Call Waiting ………..………………………………………………

26

3.2.3.4 Voice Mail …………………………………………………….......

26

3.2.3.5 Phonebook Saver ………………………………………………….

27

3.2.3.6 GPRS enabled MMS, WAP & Internet Access ……………...….…

27

3.2.3.7 Prepay IR ………………………………………………………......

27

3.2.3.8 Content Download …………………………………………….…....

27

3.2.3.9 SMS Bundle Offer …………………………………………………

2

3.2.3.10 U-Circle ……………………………………………………….….....

28

3.2.3.11 Camel Prepay Roaming …………………………………….….....

28

3.2.3.12 U Share ………………………………………………………….…..

28

3.2.4

Brand ………………………………………………………………..

3.3

Pricing Strategy ……………………………………………………….…. 29

3.3.1

Prices of Post Paid Connections …………………………….………

30

3.3.2

Pricing of Prepaid Connections ………………………………..…....

31

3.4

Place Strategies ………………………………………………………..….

33

3.4.1

There are six basic 'channel' decisions ……………………………..…...

33

3.4.2

Authorized Dealers ………………………………………………..…

34

3.4.3

Ufone Offices ………………………………………………………..

35

3.4.4

Inventory Level at different Outlets ……………………………....

3.5

Promotional strategy …………………………………………………...…

3.5.1

Promotional Budget ………………………………………………....

3.5.1.1 Total projected budget ……………………………………..… 3.5.1.2 Budget Allocation ………………………………………………

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28

36 36 37 37 37

3.5.2

Segmentation and Positioning ……………..…………………………

39

3.5.2.1 Geographic ……………………………………………………….

38

3.5.2.2 Demographic ………………………………………………….....

39

3.5.2.3 Professional …………………………………………………...

39

3.5.2.4 Behavioral Benefits …………………………………………….....

39

3.5.3

Coverage ……………………………………………………………..

39

3.5.4

Operational cities …….……………………………………………….

40

3.5.4.1

Competitive Edge ………………………………………………………

3.5.4.2

Comparison ……………………………………………………………

3.5.4

Customer Service …………………………………………………….

42

3.5.5

Key Accomplishments ………………………………………………….

42

Chapter 4

Page No

SWOT ANALYSIS OF UFONE 4.1

What is a SWOT Analysis? ……………………………………………….

4.2

Why use a SWOT Analysis? …………………………………………… 43

4.3

SWOT Analysis of Ufone ……………………………………………

4.3.1

Strengths ………………………………………………………

4.3.2

Weaknesses ……………………………………………………………… 45

4.3.3

Opportunities ……………………………………………………………. 45

4.3.4

Threats …………………………………………………………………... 45

4.4

Survey Results …………………………………………………………… 46

4.4.1

Sampling ……………………………………………………………………46

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43

43 43

4.4.2

Results ……………………………………………………………………….46

Chapter 5

Page No

Conclusion and Recommendations 5.1

Conclusion ………………………………………………………………

49

5.2

Recommendations

50

5.2.1

Recommendations for Ufone …………………………………………….. 50

5.2.2

Recommendations for Ufone Franchise, Abbottabad ……………………

Notes

……………………………………………………

………………………………………………………………………

51 51

References …………………………………………………………………………… 53

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List of Tables Chapter 2

Page No

Table 2.1 numbers of cellular subscriber in Pakistan……………………………5 Table 2.2 Different cellular Companies in Pakistan……………………………..7 Table 2.3 Telecom Sector share in GDP (%)…………………………………….11

Chapter 3 Table 3.1 Post Paid Packages………… .………….……………………………….21 Table 3.2 Different kind of Pre-paid connections……………………………….…26 Table 3.3 Pricing of Prepaid Connections……………………………………….....27 Table 3.3 Ufone Coverage…………………………………………………………36 Chapter 04 Table 4.1 total samples to Ufone samples…………………………………………43 Table 4.2 Satisfied and unsatisfied customers …………………………………….44

List of Diagrams Chapter 2 Figure 2.1 Pakistan Mobile Monthly addition......................………..…………..….5

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Figure 2.2 Forecast for mobile phone users in Pakistan……………………….…….9 Figure 2.3 Management Hierarchy………………………………………………….17

Chapter 4 Figure 4.1 Survey results……………………………………………..……………43 Figure 4.2 Satisfied Customers……………………………………………………44 Figure 4.3 Satisfied to unsatisfied Customers..………..………………………….44

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Acknowledgements Allah Almighty is worthy of all acknowledgements for giving me the ability and strength to carry out my work successfully! I would like to express my gratitude to my supervisor Dr.Waseem Ikram for his valuable time, supervision, contribution, constant guidance, patience and wise comments which made this study possible. I would definitely feel incomplete without thanking my parents whose prayers keep me going further.

Adnan Saeed

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Abbreviations PTA

:

Pakistan Telecom Authority

GSM

:

Global System for Mobile Communications

ICTs

:

information and communication technologies

PTCL

:

Pakistan Telecommunication Limited

PSDP

:

Public Sector Development Program

FDI

:

Foreign Direct Investment

PMCL

:

Pakistan Mobile Communications Ltd

SOP

:

Standard Operating Procedures

CLI

:

Caller Line Identification

GPRS

:

General Packet Radio System

POS

:

Point Of Sale

SIM

:

Subscriber Identity Module

MMS

:

Multi-media Messaging Service

SWOT

:

Strengths Weaknesses Opportunities Threats

QoS

:

Quality of Service

CV

:

Curriculum Vitae

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Executive Summary Internship was my first step in practical life, through which I learnt a lot and it has aided me in being well equipped with valuable experience that would help me once I enter the professional life after the completion of my studies. In the last quarter of twentieth century, telecommunications became the central nervous system of any economy. Just as the railroads once promoted economic growth and development, telecommunications is now globalizing markets, reducing transactions costs, expanding productivity, and directly increasing economic well-being. Pakistan’s telecom sector in general and Cellular Mobile business in particular has been going through a wave of liberalization for the last few years. The new information and communication technologies (ICTs) have had a great impact on decision-making processes, markets, the media, local empowerment, the targeting of marginal groups and employment. In Pakistan the telecom industry has flourished over the year. There has been phenomenal growth in the Telecom Sector in Pakistan, especially in cellular mobile communication and in the Internet. The cellular mobile subscribers are continually soaring and it has reached 45 million with 28.5 percent penetration. Overall tendency of the country has jumped to 35.8 percent in 2008 from the mere 2.8 percent in 2001. Ufone is a wholly owned subsidiary of PTCL. 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 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.

xvi

Six weeks internship was conducted at Ufone franchise Abbottabad, as the fulfilment of the course requirement of the degree of Bachelor in Business Administration COMSATS Institute of Information Technology. This report is based upon the findings related to the company’s operations in general and specifically in the Marketing facet. The main sources of information were participation in the work, observation of the operations and interviews with the staff members, a small survey and interviewing the customers of Ufone. This was complimented with data gathered through the company’s website, PTA website. The first chapter states the purpose of the report and the aim of the research study, as the fulfilment of the course requirement of the degree of bachelors of Business Administration. The second chapter introduces the organization; Ufone, historical background, general information related to the company, the products it offers; postpaid, prepaid, the Administrative structure, core values and the financial information. The third chapter covers the Sales and Marketing activities of the organization. Starting with a brief overview of the 4ps, it follows through with details about the four basic functions of the Marketing; Product, Pricing, Placement and Promotion. Chapter four consists of the analysis of the report and findings. The analysis was conducted in comparison with the contemporary practices related specifically to Marketing. A SWOT analysis of the company provided a base for some suggestions that have been made in the subsequent chapter. The survey findings and its results are also discussed in this chapter. Last part of the report consists of some recommendations and suggestions that I have given. My 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

xvii

itself. Conclusion and Recommendations are presented in the last chapter which is based upon the analysis of the data and findings of the study.

xviii