HND Business: Marketing Essentials - Ufone Competitor Analysis Report

This report provides a comprehensive analysis of Ufone, a major telecommunications company in Pakistan. It begins with an introduction to marketing and telecommunications, followed by a detailed overview of Ufone, including its history, current trends, and future trends. The report explores Ufone's marketing department hierarchy and current trends, such as its focus on the youth sector and various service offerings (prepaid and postpaid packages). The report details the marketing process and functions, including distribution, finance, market research, pricing, product management, promotion channels, and customer matching, and examines the relationships between the marketing department and other departments. A competitor analysis focuses on Telenor, highlighting the competitive landscape. The report concludes with a discussion of the marketing mix and the intense competition within the Pakistani telecom market.

Unit No : 2
Marketing Essentials
Submitted To: Ma’am Sneha
Submitted By : Omer Aziz
HND Business
Introduction to Marketing
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Marketing is to build a strong profitable bond of organisation with customers and give them
awareness about the product. Marketing gives a promising message to customers to provide with
the best product, to reach their level of satisfaction. Marketing finds a best opportunity for an
organisation in the marketplace. Marketers urge their organisation to carefully gauge with their
target market to consistently meet or exceed their level of expectations. Marketing covers in many
areas like Public relations, advertising, research, pricing, promotion, branding and many more.
Role of Marketing
In short, role of marketing is to understand and identify the needs and wants of customers. After
identifying, the role is to fulfill customers need and wants. Then adapt there current marketing
strategies as well, according to their customers researched needs. One more role is to widen the
market. (brecorder, 2020)
Introduction to Telecommunication
Telecommunications is any communication that takes place over a distance.
Any communication over telephone, video conference, wireless networks,
computer networks and cellular networks is telecommunication.
Telecommunication companies are working all around the globe and plays
an important role in lives of consumer today . Without telecommunication
network your business would not be able to communicate with suppliers,
distributors and customers. (researchsnipers, 2018)
Introduction to Ufone
Pak Telecom Mobile Limited or Ufone started its operation in Pakistan on January 29,2001. It was
third mobile operator to enter Pakistan market. Ufone is second leading cellular network in Pakistan.
It’s head office is located in F-7 Markaz, Islamabad, Pakistan. Telecom industry is growing at fast rate
with new companies entering this market which makes competition tough. As a result consumer are
getting benefits and enjoying low call rate. Ufone claims that they cover 10000 places in Pakistan
with 24+ million subscribers. Ufone provide LTE/4G and 3G coverage across Pakistan. Ufone
launched its LTE network in the twin cities of Islamabad
and Rawalpindi on February 9,2019. Ufone 3g services is
being used by 6.986 million, followed by 2.016 4g users
by end of July 2019. Zong and Jazz, these two companies
are biggest competitor of Ufone. Ufone marketing
strategy is one thing that gives upper hand against its
two rivals. Rashid Khan is the current CEO of Ufone.
(owler, 2020)
When PTCL was privatized than Ufone became a part of Etisalat (Emirates Telecommunication
Corporation) in 2006.Etisalat is a multinational UAE based telecommunications services provider,
currently operating in 17 countries across Asia, Africa and Middle East. (UfoneOffical, 2020)
Ufone immediately attract attention in telecom market as it was one of early telecom brand
register in Pakistan. Ufone is one of best telecommunication networks that generates great
revenue. Ufone has a revenue of $250 million till Aug 2019.
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Marketing department hierarchy
Current trend of Ufone
• 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. Along with the claim of lowest call rates,
best network coverage and clear sound, Ufone is offering daily, weekly and monthly
packages.
• As there was lot of competition in telecom market, Ufone increases its focus on the youth
sector of Pakistan. As its cover 50% of total population of Pakistan.
• Ufone promises its customers to stay ahead, developing, evolving to go beyond their
expectation by there power slogan of “It’s all about U”
• Ufone provides with two kinds of services i.e Ufone prepaid and postpay. In prepaid they
offer Super card, All in one offer and voice offer etc. In postpay they offer Ufone prime
packages, Postpay super load and internet offer etc.
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Marketing
Marketing Manager
Marketing Team
leader
Assistance Manager
Employees

• Ufone have made packages facilities easier by giving online subscribe or renew of package
by entering your number online in the website provided by ufone.www.ufone.com.
• Ufone also provide with international roaming facility. Ufone facilitates its customers to
keep on touch with their loved one while traveling to different countries like UAE, UK,
Kuwait and many others with low rates.
• Ufone introduces mobile bank app “UPAISA” the most complete mobile financial service of
its kind in the country. Upaisa was introduces in response of easypaisa (mobile bank account
available to anyone) which was made by Telenor. (propakistani, 2019)
Future trend of Ufone
• In the recent times, the competition level in Pakistan in the telecom companies has raised a
lot. Therefore, to survive in the market it is important for Ufone to have strong marketing
and advertisements in order to grow their market share in this progressing and growing
market.
• Ufone vision is to be the leading and most trusted telecommunication service provider in
Pakistan by offering innovate communication solutions for our customer.
• Its main focus will be on maintaining high and good quality of service, increasing usage rate
and generate more revenue.
• Ufone will introduce 5G coverage in Pakistan to keep itself with other companies like Zong
who have 5G coverage running in Pakistan.
• Ufone will convert its Gsm technology inti 3G network.
• Ufone will provide their competitor customer with superior services in lower prices.
• Ufone will promote itself in southern Punjab where it has low market.
• They are working to expand there services globally.
• Digital Marketing will replace traditional market in future which will make use of techniques
and strategy that will not only attract more traffic to your business but quality traffic which
will engage and convert more.
Marketing Process
Marketing process is to attract strangers towards there companies or organization. In first
situational and environmental analysis is done to identify marketing options and to check what a
company can do. After identifying marketing process, an analysis is done to select the best
available marketing plan. Then marketing mix decision takes place in which decision related to
product development, product pricing and product promotion is made. Finally, the marketing
plan is executed, and the output is being monitored.
Marketing as a function
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As in scenario, I have taken Ufone for my marketing organisation. Ufone is one of well-
established and telecom market leading company across Pakistan. Marketing function are
defining as roles that can help company to identify and also source potentially successful
products that they produce to marketplace, while it also helps to differentiate between your
company product similarity with other companies’ products. There are 7 marketing functions
that we will look at below:
Distribution:
The first function is distribution. This is the process is which company gets it goods and services
to customers who wants to purchase. It is not easy to sell product and alone ideas are not
enough. There is a proper way of setting cannels in form of distribution. Setting up a distribution
is much harder than setting up a shop due to high level of competition. Ufone distribution is in
form of franchise and company official offices in which they provide their major services. Ufone
has leading number of franchises across Pakistan than its competitor like Zong and Telenor
because of having large market telecom share in Pakistan.
Finance:
The next function is finance. For every business, finance is must to make it run. There are many
various finance sources like bank loans, owner self-investment, shareholder investment, sponsor
and selling company product. Ufone can be using bank loan to help them be finance stable
organisation. Other than this the profit earn by services provided by company is one of the
sources.
Market research:
Market Research is another function. Without market research it is impossible to sell or provide
services and goods. By doing market researching the company gets to know about current trend,
customer’s needs, wants and future market. Ufone has done market research, figure out that
telecom was very fast growing in 1900s and there was a increasing demand so companies stared
to build there telecom services and earn high level of profit.
Pricing:
Every product or service is set at specific level of price. To attract potential customers, the
company needs to ensure that the price is affordable and attractive to them. The price is set of
products, after trial and market research. For Ufone, as it is one of Pakistan oldest
telecommunication company and it started by giving 2g coverage at that time but now as their
coverage quality is increase in 3g/4g their price is also increasing.
Product and service management:
After market is set with product and services pricing. Next step for company is to for example
Ufone, are to effectively manage their products and services. Company research into
technologies, trends, and provide services that cater to the current generation and are relevant
and innovative.
Promotion channels:
The function next is Promotion channels. To ensure that revenues occur, and the products
remain relevant, it is important to advertise these products by methods such as T.V. Ads, flyers,
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e-mails, newsletters. For Ufone it has one official account in social network like Facebook and
Instagram. Ufone has its own website and do lot of online advertisement plus tv commercials.
Matching product to customer:
The last function is of matching product to customers.a Selling is the final function of the
marketing process, while also being different than marketing. Since one cannot sell their
products before the company’s customers’ wants and needs are researched, Selling is the final
function. After this company provide accurate product at accurate price. To make it simple, all
marketing function previously explained are combined and used together to make this function
successful. Company like Ufone spend lot of money in market research to ensure that their
products and services sell well and remain popular.
Market department relation with other departments
Marketing is part of business organizational and is link to other departments and
functional units. Marketing functions are backup with other operational departments.
Some of departments which plays important role in marketing are financial, sales,
production, and human resources department. (prezi, 2019)
Marketing relation with Human resource
HR department is established in every organisation, so new talent can be scout out. Their duty is
to ensure that correct staff is in place to perform certain duty and check that new products or
ideas are being produced. The communication between marketing and HR department must be
strong.
Marketing relation with Finance
All the transaction is happening by finance department in company and without there approver
not a single penny is used for marketing. The bond of finance department and marketing
department is of money, which finance department provide through funds for doing marketing.
Publicity, advertisement, and some other creative ideas for organisation is done by the help of
finance department. I think finance department as a backbone for every organisation. In Ufone
finance department is helping by giving funds for promotion and advertisement of there new
packages and services.
Marketing relation with production
In production department it is check which production method is the beat and accurate for
producing a specific product. Different quality of material is used for production and through
marketing it is checked which product has high demand in market. This is the way in which both
departments are linked.
LO2
Ufone competitor analysis
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In these days of intense competition markets find it hard to differentiate their services from
those of competitors. As I have chosen Ufone as my organisation, its main competitor is
Zong, Telenor and Jazz. It is a telecom company running it service in Pakistan and aboard.
There is a hard-core competition among these telecom companies. As I have been told to
choose one competitor for my organisation. I will choose Telenor.
Telenor
Telenor is a multination telecommunication company running it services in Pakistan also. They
started their business with about a billion dollar investment in Pakistan. Telenor has about 4.5
million subscribes across Pakistan covering 27% market share. (PTA.GOV.PK, 2019) This is a reality
that both companies have different goal and ideas which make this competition so special.
Marketing Mix
It comprises of 7Ps of marketing:
1. People
2. Price
3. Place
4. Promotion
5. Products
6. Physical evidence
7. Process
Ufone Marketing Mix
People:
The people include inside and outside of business organisation, they are responsible for organisation
every sale, marketing, and other activities. The working body of Ufone is 3800. Ufone target different
segments or class of people: Youngsters and teenagers (ageing between 12 & 25), Corporate class,
Entrepreneurs and Working class.
Price:
Price is the first concern for mostly customer before purchasing product or services. Ufone is
providing different packages like its customer like Uwon, super card etc. Price has always been the
core differentiation of Ufone. Customers perceive pricing as the heart of brand selection due o which
Ufone is offering least call rates. Ufone provides one of the cheapest message rates in Pakistan.
Place:
Place plays a very important part in the distribution and promotion of services. Ufone provide their
customer with franchises, online website, Ufone help care and Ufone app. Many information based
services can be avail in almost all part of Pakistan.
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Promotion:
Portion is a method of branding and promoting your products. Ufone believes in integrated
marketing communication which is a carefully mix of promotion tools. Ufone promote their services
and packages by advertising, sales promotion, and direct marketing.
Product:
Ufone offer a variety of products and services to its customers. In each product it offers a variety of
different packages for its different segment of users. Ufone offers Postpaid, pre-paid and GRPS.
Physical Evidence:
Physical evidence means customer service i.e. billing. Ufone has easy and effective process of billing
for its post-paid customer. It can be performed through credit card, by using scratch card or by going
to the outlet of Ufone. Ufone also have 24/7 customer care helpline working where they provide you
information about packages or any problem you faced.
Process:
Lastly is process. Process is production of its goods or to check how friendly their products are to the
environment. Ufone through their customer gathering process trying to achieve high market share
amongst youth of Pakistan.
Telenor Marketing Mix (Competitor)
People:
Telenor has 35000 plus employees. Company try by making special care of employees to build a
strong relation. Telenor's workforce is dedicated and enthusiastic.
Price:
Telenor has been excellent with there pricing from day one. They have introduced bundles: internet
bundle. Telenor has done lot of work in producing row rate internet package is has been a success.
Telenor has also started easypasia by which you can send or received money and from easy paisa
app you can also avail discounts and offers which are only for the users.
Place:
Telenor sold their franchise in Pakistan keeping some place places outlet to themselves. The services
provided by these franchises are mobile card, new sim cards, customer care and change of
ownership. There some services are also sold by local mobile shops.
Promotion:
Promotion include planning, implementing, and controlling services of organisation to its customers.
Telenor uses many modes of doing promotion which includes: sales promotion, advertisement and
publicity.
Product:
Telenor provide with two type of product: prepaid and postpaid. This product target Pakistan
general market. Mostly prepaid user is labor and students. Postpaid sim are being used by
businessman mostly. Prepaid and postpaid are further divided into packages.
Physical Evidence:
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The physical evidence is provided by company outlets and official website. The recharge voucher are
also a evidence of company existing.
Process:
The process is made easy be Telenor by having their Outlet in almost all cities in Pakistan. You can
also do online registration by filling a form and by attaching a Cnic copy. The process ids
made further made easy by customer care service.
Marketing Plan
Marketing plan is very important for every organisation, whether it is profit or nonprofit
organisation. It help to have control over market.
UFONE
Ufone is my selected company. Ufone is second largest cellular network in Pakistan. Ufone vision is
to be the leading and most trusted service provider in Pakistan by giving the consumer better quality
network in low rates. Ufone mission is to provide best services with best quality coverage and
generate profit for the company and stakeholders.
Company goals
Ufone goals is to increase customer satisfaction and they have become successful by providing low
price with better quality and coverage. Ufone also have more goals which includes: Identifying the
present market scenario of Ufone. To know the scenario of its improvement. Ufone got tremendous
strength of maintaining their existing customer satisfied with providing good offers and 24-hour
customer service helpline.
New product
As we know that Mobile wallet user are increasing day by day in Pakistan. What is mobile wallet? In
mobile wallet you have certain application, from which you do mobile payment and online
branchless banking. Easy paisa and jazz cash have a big grip of mobile wallet market in Pakistan. Easy
paisa is owned and run by Telenor.
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Recently Ufone has successfully introduce new technology of having two numbers in one sim. Till
now only Ufone is the telecom brand in Pakistan who has got this technology. You can avail this
feature by message or giving call to *66# from the Ufone number or sending SUB to 660.
Company
A new separate department will be introduced with a fixed budget, depending on the need. Ufone
CEO will be at top of the department structure , followed by marketing, finance, HR and IT. A new
head office will be made, lets buy a building in Blue area, Islamabad and make it as head office.
Afterward we will make rent places for satellite office in main cities of Pakistan: Karachi, Lahore,
Multan, and Peshawar. As it is a new business and we can not invest lot of budget in setting up over
satellites offices in more cities.
Target market
Lot of citizen specially of rural area prefer mobile wallet account than bank account. The main target
is people with domestic remittance services. The people who can’t open bank account
because of some restriction and the best part is 24-hour service.
SWOT analysis
Strength:
Ufone is good with service and the rate of package, which are a way less than other Telcom
companies. The main strength of Ufone is having an old market history and lot of satisfied customer.
They are lot of chance that this application will work well and give its opponent a tuff time.
Weakness:
The weakness will be lack of experience as Ufone have not done anything related to this
before. Communication challenges will be sometime a problem for Ufone, especially in northern areas.
Opportunities:
It will make business strong and there will be a lot of chance of getting an increase in sale.
Threats:
The main threat is the competition from easy paisa and jazz cash. As they are old in this field and have a
way more experience from Ufone. As it is a new business there will be high cost of marketing and there
will be chance that business will take time to make it place.
Focus on advertising
Whenever you have to market your product or promote it, you do it by advertising. For marketing there is
a proper department whose work is only to do marketing. The department gets it part of money from
budget which it spends on employee’s salary and on doing advertisement. The first task to launch a new
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product is to give it a name, a name should be catchy and attractive. There are lot of ways of doing
advertisement: Tv commercial, magazines ad, social media, direct sales, by messaging to current customer
and by company official website. You can also become sponsor in event like food fiesta or PSL.
Product
Ufone provide variety of product. Prepaid and postpaid connection are two main products. The
Mobile wallet app will be introduce in two variant, one will be simple and other will be exclusive.
Price
This app will be free of cost but the exclusive variant will have some advance feature which ask for
payment before using. Account holder will get special discount on Ufone packages. On special
Occasion “EID” you will do some adjust pricing for exclusive account holders.
Promotion
Promotion is very important for sale of the product. You can promote your product by giving offer
on special occasion “Eid and Ramadan”. Promotion is mostly done by advertisement and we have
discussed above the ways of advertisement. You can also make some companies mind sponsoring
your product. You can also get discount on sponsor outlet by keeping your balance high.
Place
Like we have discussed before that we are only opening over business in major cities of Pakistan and
later after it start to grow we can distribute out branches by distribution channel “Franchises”.
People
People are the main element for the success of product, as they are the ones who buy and utilize it.
The main purpose of marketing is to make awareness of your product among people and make them
your customers.
Process
Your account will be linked with your register Ufone number. The main function will be of doing
money transfer and easy load. You can also pay utility bills. You have to visit official office or register
franchise to get yourself register. After that you can add money by going to mobile retail shop or by
debit card. The maximum money limit will be 100000.
Budget
Overall budget that will be needed for marketing department promotion activities and its rental
satellite offices will be 640000.
Rental offices 160000
Tv commercial 60000
Administration 140000
Magazines Ad 30000
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Social media 40000
Direct sale 60000
Sponsor 150000
TOTAL 640000
Conclusion
Telecommunication industry is growing very fast in Pakistan with big competition. Ufone still needs a
huge financial investment to grow its coverage and to make existing coverage better. Most of
customer are looking for cheap call rate and competitors like China mobiles (Zong) are giving a tuff
time to Ufone. In result of this, Ufone introduced stunning packages for their user. Ufone also
started to promote their existing packages in authentic and better way which help company to grow
fast and safe.
This product will boost Ufone revenue as there are 5.22 million users of mobile wallet (Easy paisa
and Jazz cash). Once the business starts to grow you will get a handsome amount from your sponsor
and franchise buyers. You can keep a fixed fee for fixed amount transaction.
References
(2018). Retrieved from researchsnipers: https://www.researchsnipers.com/top-telecom-companies-
in-pakistan-2018/
(2019). Retrieved from propakistani: https://propakistani.pk/packages/ufone-packages/
(2019, 5 30). Retrieved from prezi: http://prezi.com/k0yvpdrwhygf/marketing-department-
functions-and-relationswith-other-department/
(2020, 4 18). Retrieved from brecorder: https://fp.brecorder.com/2019/08/20190828512596/
(2020). Retrieved from owler: https://www.owler.com/company/ufone
(2020). Retrieved from UfoneOffical: https://www.ufone.com/
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