marketing plan waqas

8/9/2019 MArketing Plan Waqas

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Current Market Situation

Market Definition

Telecommunication is the assisted transmission of signals over a distance for the purpose

of communication. Telecommunication is an important part of the world economy and

the telecommunication industry's revenue has been placed at just under 3 percent of thegross world product.

GSM Technology:

GSM is a cellular network, which means that mobile phones connect to it by searchingfor cells in the immediate vicinity.

Global System for Mobile communications (GSM: originally from Groupe Spcial

Mobile) is the most popular standard for mobile phones in the world. Its promoter, the

GSM Association, estimates that 82% of the global mobile market uses the standard.[1]

GSM is used by over 2 billion people across more than 212 countries and territories.GSM also pioneered a low-cost alternative to voice calls, the Short message service

(SMS, also called "text messaging"), which is now supported on other mobile standardsas well.

Market Size

The telecom sector worldwide is growing with an increase in opportunities for telecom

service providers. New trends are prevailing in the market and demand for new and

additional services is continuing on the rise. Pakistan, the sixth most populous country ofthe world with a population of 160 millions, is expected to be the next consolidation hot

spot. Pakistan's telecom sector is becoming an ideal targetmarket for the IT and telecom companies around the globe. Pakistan is Asia's top market for 2007, rising 23% this quarter

and of a rise of 15% in the first three months. This country has

an immense market potential in telecom and IT sector. The popularization rate of mobile communication is 5% which

indicates the growth prospects in Pakistan. The mobile

subscriber base, after growing by almost 170% in 2005 and 23% in 2006, had reached

over 48 million (30% penetration) by early 2007 and was continuing to grow. Thegovernment was continuing to work towards its targeted national teledensity of 7%

(around 10 million lines) by 2010. To achieve this target, more than one million

additional lines need to be installed every year.


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Market SegmentationAs it has been observed that the telecommunication market of Pakistan is having more

than 7 crores subscribers now, & now mobile phones & its services has become the part& parcel of life. On this behalf we are going to segmentize Ufone market according tothe following variables.

Geographic

World region: Pakistan

Country Region: Every corner of Pakistan.Density: Urban, Suburban, Rural.

Demographic

Age: 13+

Income: The average of population having at least Rs.4, 000 income per monthare using communication services.

Occupation: Ufone telecoms service is not associated with any classifiedemployment because communication is the need for all. While consumers are

divided according to Ufonepackages (discussed in consumer analysis section).

Nationality: Resident or Non-Resident of Pakistan.

Psychographic

Social Class: Upper lower, working class, middle class, upper middles, lower

uppers, upper uppers.

Life style & personality: {varies according to the service or package}.


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Consumer Analysis

Nature Of Buying Decision

B uying Behavior

Buying behavior for our product will be complex with high involvementregarding price, quality of service. The buyer will pass through learning process. He will

develop beliefs & attitudes towards the product then he will make a decision to purchase

product..

PsychographicsWhile segmenting the market on psychographic basis we will consider social

class, life cycle & personality.

Social Class: They are offering golden number chance for upper class in which theycan also get number of their own choice & middle or lower middle normal numbers will

be offer. But service for every class will be as we believe on equality.

Life Style & Personality: Life style is the persons pattern of living in the world as

expressed in activities, interest and opinions. In the mean time if we talk about the mobile

services people owns different styles of its usage. Some of the people loves talking,talking & talking, some loves to chit chat, youngsters like to have prepaid services,

Business Executives used to have postpaid package. Beside these factors some people use

their credit frequently & some are big savers, and etc. So focusing on these factor Ufone

develop their packages according to above motioned psychographic factors.

Demographics

Communication in this fast growing world is necessity for everyone & focusing on

this aspect our product will be free from the boundaries or bounds of demography. There

will be no age difference for those who want to remain in touch with others, no gender,

no limitations on the basis of income as our prices will under reach of every person.What so ever are occupation, education & nationality.


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Competitors Analysis

Competitors Strategy

Since the telecom industry of Pakistan has revolutionized, the competition has become

more expeditious. There are five rivals in the market and every one is pulling each

others leg by offering the cheapest rates of a fine service. They are basically followingthe Cost leadership to pursue cost reduction and uses tight cost controls to produce

services more efficiently than its competitors. In this situation the company can undercut

competitors prices and still offer comparable quality and earn reasonable profit.

Competitors strengths and WeaknessesCompetitors StrengthsWeaknesses

Large market share. Focusing just on On-Net

packages.

Good service availability. Fails to attract new customer

Innovative Technology. Interaction between Call & SMSAttractive Marketing. packages.

Abu Dhabi Group of UAE Weak Marketing.High tax deduction.

CM- World largest telecom Paktel as a brandname.company.

Covering Federal Areas Negative imageLowest market share


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Competition & Market Share


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SWOT and Issue Analysis

Strength

Financially Strong.

Highly stabilized infrastructure.

Highly Qualified Staff

Roaming Facility in more than 150 Countries

More then 350 Franchises and 21 owned-Sales and Customer Services.

Ufone has Wide network.

Ufone has a comprehensive promotional strategy.

Ufone has a unified network of franchises.

Electronic Voucher Distribution (EVD) is a great new re-charge option for prepaid subscribers that doesn't relay on the availability of scratch cards for

topping up their Ufone credit. This service is great because it ensures that the

credit require for Ufone connection will always be available on-demand.

Ufone has launched a state of the art call center in Karachi. This call center hasmore then 250 customer service agents and will offer round-the-clockavailability to cater the growing number of customers and provide them requisite

information in accordance with their needs. The most significant feature of the

call center will be local languages- speaking customer service agents who willassist the customers speaking Sindhi, Punjabi, Pashto in addition to the widely

spoken English and the National language Urdu.


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Weakness

Less coverages in remote areas

Not targeting the rural areas at the moment

No proper planning to cater the excess demand.

Ufone being a government organization has relatively less human and financial

capital available as compared to its major competitors that are subsidiaries of

large multinationals such as Mobilink and Telenor.

Customer services provided by Ufone are not according to the requirements oftheir customers.

High Turnover rate.

Opportunities

Less restrictions due to be a Pakistan based company.

As they are the Subsidary of Pakistan telecommunication limited, they canacquire as much fund needed to improve technology.

They can also target corporate sector

New Technology

There are vast opportunities of growth as market penetration rate of the cellularmarket of Pakistan is only 2.3%


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The introduction of new technologies in the cellular industry has increased thedemand for it along with reducing the operation costs for these companies.

Ufone can develop direct relationship with retailers on large scale through

Electronic Voucher Charge.

Ufone can further improve its network in order to make more loyal customers.

Threats

Legal environment , Government interference.

PTCL has been given license to Cellular operation.

Strong Rivals.

High taxes are imposed on the cellular industry in Pakistan.

Mobilink also going to introduce new technology and committed to more invest in

Pakistan.

Changing technology is also a threat for Ufone because things are changing sofrequently in the market with the change in technology


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ObjectivesGoals

In order to extend cellular network to new cities, towns and highways and enhance its

current installed capacities in existing cities, Ufone has finalized a huge network

expansion contract amounting to about USD 550 million, which will enhance thesubscribers capacity by 10 million. This is the largest ever expansion project of Ufone

Objectives

Ufone because it is dynamic organization with a powerful culture that

allows people to make most of their skills, personality and career. I

developed such knowledge and skills which directed to my career.Customer Service

Ufone is proud to have an efficient and friendly customer service through 21companies - owned sales and customer service Centers and nearly 250

franchises acrosses the country. The outlets are able to service the

customers with innovative solutions, and are empowered with Web based

Fracnhise management systems. Ufone is poised to face the over increasingchallenges of the market and it is confident.


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Vision

To be the first preference of customerin value optimization

Mission

Ufone its all about U! We are, where u wants to be.At Ufone we aim to

provide you with wider coverage, superior connectivity, clear quality, voice

signal.where ever you are Ufone keeps you connected. To lead the industryby instilling pride in our people,

Creating values for our customer by exceedingTheir expectations in delivery of their emotions and

Sharing responsibility for our beloved country.

Values

The stimulating corporate culture of success comes from what we value as a

company and how we live those values as individuals.

Integrity & Mutual Respect: We do the right thing.

Teamwork: We work together to get the job done.

Creativity: We seek creativity and outside the box thinking

Empowerment: We enable our people to make decisions with responsibility


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Which increases loyalty and fosters ownership

Marketing Strategy

As the market is very attractive & our enterprise has much potential. Then we will investour best resources in support of our offering. Our market strategy will be based on

positioning of cost leadership, to produce low cost services more efficiently than our

competitors.

Product

Product Overview

Our first product, Ufone cellular SIM, offers the following standardfeatures:

Value Added Services

CLS (Caller Location Service)

Contact recovery (pre- activated).

Free connectivity to GPRS.

Google search & Google talk.

Dictionary.

News alert messaging service.

E-call.

Balance sharing code.

Also Available (Ufone Fun kit)

Infotainment.

Music.

Fun corner.


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News.

Sports.

Friend search.

Religion.

Banking & finance.

Captive Product & Service

Scratch cards: Rs. 100, 250, 500, 1000.

Share with code: That will allow you to prevent your credit.E-Zee load: Rs. 10 to 2000.

Smart Share : Rs 10 to 1000.Loan Service : loan up to 10 Rs (in case of insuffiecent balance)

Product Mix & Product Line

For the first time in Pakistan Ufone telecom is offering smart & exciting Prepaidpackages & handsome Postpaid packages.

UFONE Telecom

Prepaid packages Postpaid Packages

Ufone plus Black BerryUfone Ghanta Package Ufone Uredge

Super Ghanta Package

60 paisa offerPaanch ka pundra

SMS bundle offer3 Minute Package

Badal do QismatSms Night Packages

UWON


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TARIFF

Prepaid Packages

Ufone offering smart & exciting packages for the first time in Pakistan.

3 Minute package

Charging Pulse 3 minute

Ufone to Ufone 24 Hours Rs 2.00 / 3 Min

Ufone to Other Mobiles 24 Hours Rs 3.20 / 30 Sec

Ufone to PTCL 24 Hours Rs 3.20 / 30 sec

Ufone to International 24 Hours Standard Rates Apply

Ufone to Ufone 24 Hours Rs 0.50 / SMS

Ufone to Other Networks 24 Hours Rs .100 / SMS

International 24 Hours Rs 2.50 / SMS


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5 ka 15


Ufone to Ufone* 24 Hours Rs 1.125 / 30 sec

Ufone to Other Mobiles 24 Hours Rs 1.25 / 30 sec

Ufone to PTCL 24 Hours Rs 1.25 / 30 sec


*Get 10 minutes free after every 5 minutes of call

Ufone to Ufone 24 Hours Re 0.25 / SMS

Ufone to Other Networks 24 Hours Re 0.25 / SMS

Ufone to PTCL 24 Hours Rs 2.5 / SMS


Super Ghanta


Service Charges Daily Rs. 5.99


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Ufone to Ufone 0400 Hrs to 1659 Hrs Rs 3.50 / Hr

Ufone to Ufone 1700 Hrs to 0359 Hrs Rs 1.00 / Min

Ufone to Other Mobiles 24 Hours Rs 1.60 / Min

Ufone to PTCL 0400 Hrs to 1659 Hrs Rs 3.50 / Hr

Ufone to PTCL 1700 Hrs to 0359 Hrs Rs 1.60 / MinUfone to International 24 Hours Standard Rates Apply

Ufone to Ufone 24 Hours Rs 0.50 / SMS

Ufone to Other Mobiles 24 Hours Rs 1.00 / SMS

Uwon


Ufone to Ufone 24 Hours Re 1.00 / Min

Ufone to Other Mobiles 24 Hours Rs 1.60 / Min

Ufone to PTCL 24 Hours Rs 1.60 / Min


Ufone to Ufone 24 Hours Re 0.50 / SMS

Ufone to Other Networks 24 Hours Re 1.00 / SMS

Ufone to PTCL 24 Hours Rs 1.00 / SMS


UFONE Codes:

Balance enquiry: *333#

Helpline: 333

Package Conversion: 124


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Price

Pricing Method:Ufone has planned to follow 2 pricing methods as follows:

Value Based PricingWe will set the price based on the buyers perception of value

rather than on our cost.

Competition Based PricingWe will also consider prices, based on the prices that our

competitors will be charging.

Pricing Strategy

White Bird pricing strategy will be the Market Penetration. As it has been definedearlier that how competitive the market is and the rivals are following the cost

leadership. In order to divert the attention of the customer market penetration will be

followed.

DistributionUfone adopt the Intensive Distribution Strategy and Vertical Marketing Systems, consistof different intermediaries. The services will be delivered through the following

channels:

Full Service Retail Sales: ( Sales & ServiceCenters)


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It involve the sales of our offering through a full service retail

distribution channel.

Wholesale Sales: (Franchises)

It involve the sale of our offering using intermediaries or middle men to

distribute our product or service to the retailers as well as customers.

Beside it, will also offering our services as a franchise.

Self-Service Retail Sales: ( Public Retail Stores)

It will involve the sale of our offer using self service retail methods of

distribution

P romotion

To sell their offering the are effectively promoting and advertising it. For promotion,their strategy is PULL strategy. To implement on the strategy, they are spending a lot on

advertising and promotion to build up consumer demand.

Advertising Strategy

For the new product launching in the market, we have planned and divided the

advertising into 4 phases:

1stPhase:Corporate Advertising

Initially we will make our corporate identity in the minds of our customer.

As Ufone telecom________Its all about U.

Because when we have a variety of offerings & our audience is fairly broad, it is often

beneficial to promote our enterprise identity rather than a specific offering.

2ndPhase:Product & Product Comparison Advertising


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After being identified in the audience we will introduce our offerings, where our offeringswill be one of the several similar capabilities. If our offering stacks up well when

comparing features, then a product comparison ad will be beneficial.

3rdPhase:Product Benefits Advertising

After launching the product, we will promote our offering without comparison to

competitor. To increase sales, the product benefits ad will be the correct approach.

4th Phase:Occasional Advertising

Being a part of Pakistani culture, we have planned to advertise regarding to the eventand occasion. We will also come up with new offering on different occasions like

Ramzan, Eid, Independence Day etc. its a part of our objective that we will offer our

postpaid package on Eid.

AdervertisingTools

Advertising

Electronic Media Print Media

T.V Newspapers

Radio MagazinesInternet Hoardings/ Signboards

Wall PaintingsAdvertising Vehicles

Public transport


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Action Programmes

They offer such incentives like free balance, extra minutes etc to our customers as wellas to retailers in the shape of higher profit in cards recharging & E-zee loading and

planned to introduce a scheme especially for retailers on higher selling.

They promote their brand by hiring a celebrity model as a brand ambassador foradvertising & fill the bill boards, hoardings, & ads with his/her picture.

The month of September hold the month of Ramzan in the Muslim calendar. And as we

have developed our plan to introduce the postpaid package in the month of October,which will be the occasional month of Eid. In these months they have to conduct

occasional marketing campaign and will also start the sales promotional activities for

our postpaid packages which will be launch in 4 th October, but advertising will be started

in September.

Personnel Requirement

To pursue the effective progress of the company, they develop an efficient work force inthe company. They hired different entrepreneurs and consultants that help the

organization to make effective decisions in any situation. They further hires different

level of employees including middle & lower management, who will share their creative

& innovative ideas & their services in order to achieve the goals & objectives of thecompany. After hiring they passed through the following process.

Assign Responsibilities

To run our organization smoothly & effectively they hired both fresh &

experienced employees. In order to implement on their plan they decided to

put fresh employee under the supervision of experienced one. This idea willhelp them to create a healthy environment of fresh & experienced

employees. They assigned the task as per their skills and specializations.


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Give incentives

No motivation means no improvement in the progress of employees. We

provide state of the art incentives and fringe benefits to employees. . Salary

increment will also consider but although all of the incentives will be theresult of the performance.

Training on sales

Sales will be the major aspect in order to achieve objectives. They trainedtheir sales representatives & develop the negotiation skills in them. Many

other training programs are planned to be conducted to polish employees

skills.

FORECAST AND BUDGETING

Financial Analysis

Ufone has over the last six and a half years made huge investments in the national

economy. PTML has successfully been able to build upon its excellent financial results

from the previous year. During the year Ufone successfully completed the networkexpansion 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.

Since Ufone is an SBU of PTCL therefore they are not authorized to disclose their profits

separately. For the same reason PTCLs financial statement incorporates the profits

earned through its mobile operations and the figure are displayed in their annualreports.

Ratio Analysis of Ufone

Ufone current ratio in 2008 was 0.30 Asset test ratio in 2008 was 0.31 Ufone debt to equity ration inn 2008 was 0.35


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Ufone debt to total assets ration in 2008 was 0.64 Ufone interest covering ratio in 2008 was 16.3 Their receivable turnover ration in 2008 was 07.07 times. Inventory turnover ratio in year 2008 was 18.6 times. Total assets turnover ratio in year 2008 was 0.32 Net profit margin in 2008 was 28.4% Ufone return on investment in 2008 was 10%

Future Financial Plans

Keeping in view the growth potential of the cellular industry there is no option but to be

aggressive in order to remain a potent force in the cellular industry. In order to extend

cellular network to new cities, towns and highways and enhance its current installedcapacities in existing cities, Ufone has finalized a huge network expansion contract

amounting to about USD 550 million, which will enhance the subscribers capacity by 10

million. This is the largest ever expansion project of Ufone.

A strong focus will be on maintaining high quality of service, which is always abenchmark of Ufone, increasing usage and exploring new revenue streams on value

added services, market visibility through various market initiatives to fulfill subscribers satisfaction and demand and above all to increase the value of investment for the

shareholders.

Implementation ControlsThis segment will enable the company to measure planning process. their objectivestated where they want to be, the plan sets out a road map to our destination and then

the control will tell us if we are on the right route or not.


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They are tightly controlled to measure to closely monitor quality and customer serviceand satisfaction. This will enable us to react very quickly in correcting any problem, that

may occur. There are so many approaches from which performance can be evaluated.

But ufone use these approaches.

Five Approaches Sales Analysis

This analysis consists of measuring and evaluating actual sales in relation toour objectives. As we have designed our objectives that we will have to

achieve the sales volume of 3 million subscribers in 1 year. If unfortunately

we will fail to touch the volume target, we will closely analyze why thecompany could not achieve the expected sales volume.

Market Share Analysis

As we mentioned above that if we could not achieve our target volume that

will affect our market share. We will analyze the causes of failure through

the market share equation, that will provide four possible explanation.

Overall Market Share = Customer Penetration X Customer Loyalty X

Customer Selecting X Price Selectivity.

Quality Control

We will be keeping checking our quality of service from various testing. There

may be some circumstances in which the network can get busy like Eid, New

years and such occasions. So these occasions would be the early warning for

us to get ready in order to tackle such situations.

Marketing Information System

MkIS will provide us the timely accurate information about the marketingenvironment. It will efficiently enable us to develop strategies and take

proactive measures to face changing consumer preferences and increasing

competition.

Customer Relationship Management

We will develop a CRM, that will allow our customer to directly share their

problems and suggestions regarding our services by any medium, if it needsbe improved or modified. There will be a toll free number of our CRM


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department, which will be controlled by different qualified and trained CROsthat will help our customer in solving their problems and providing any

information regarding our service.

Bibliography

Books Concerned:

Market Management and Principle of Marketing.

By Philip Kotler.

Management

By: Weihrich koontz.

Internet Approach:

www.ufone.com www.mobilinkgsm.com www.telenor.com.pk www.waridtel.com


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www.paktel.com www.ptcl.com.pk www.pta.gov.pk www.telecompk.net
http://www.pta.gov.pk/http://www.telecompk.net/http://www.pta.gov.pk/http://www.telecompk.net/

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