1. Strategic Marketing & Planning
Institute Of Business Management
Business Plan
On
“A Road Map To Success….”

2. Strategic Marketing & Planning
Submitted to:
Mr.Ekhlaque Ahmed
(Faculty Iobm)
Submitted By:
Saad Khan (2005-2-3-4700)
Faisal Nasir Nagjee(2009-3-42-9601)
(Student)
Submission Date:
15th
August 2010

3. Strategic Marketing & Planning
Table of Content
BUSINESS SCOPE..........................................................................................................................................8
VALUE ADDITION.........................................................................................................................................9
BUSINESS WE ARE NOT IN:........................................................................................................................10
External analysis........................................................................................................................................11
CURRENT MARKET STRUCTURE OF INDUSTRY...........................................................................................11
Market Structure ......................................................................................................................................12
Market Structure’s segment wise analysis.................................................................................................14
SEGMENTAL ANALYSIS...............................................................................................................................14
URBAN MARKET:.......................................................................................................................................15
HOUSEWIVES.............................................................................................................................................15
YOUTH.......................................................................................................................................................16
..................................................................................................................................................................17
OLD AGE GROUP........................................................................................................................................17
RURAL MARKET.........................................................................................................................................17
LANDLORDS...............................................................................................................................................17
YOUND INDIVIDUALS.................................................................................................................................18
RURAL WOMEN.........................................................................................................................................18
FARMERS (KISAN)......................................................................................................................................20
MARKET STRUCTURE OF TELECOMMUNICATION INDUSTRY.....................................................................22
Market Size and Growth of Mobile Sector—Subscribers (Past 4 years)....................................................23
Analysis of Market Size:.............................................................................................................................24
Market Size and Growth of Mobile Sector—Subscribers (Past 4 years)....................................................25
Analysis......................................................................................................................................................26
Market Overview:......................................................................................................................................27

4. Strategic Marketing & Planning
Analysis:.....................................................................................................................................................28
UFONE DISTRIBUTION STRUCTURE............................................................................................................29
Product Life Cycle......................................................................................................................................32
Analysis:.....................................................................................................................................................32
Product Life Cycle......................................................................................................................................33
INDUSTRY DRIVING FORCES...................................................................................................................34
POLITICAL ..................................................................................................................................................34
The current political situation in Pakistan is driving investors out of the industry, the impact of which
can also be seen in the telecom sector. As investors have reduced there investment share in Pakistan
during last year......................................................................................................................................34
With the budget year 2010 it was proposed by the political parties that certain laws should be passed
to discourage the ill saying against the political leaders/government officials, the suggestion further
included increased in the tariff rate of value added services such as SMS............................................34
Economical................................................................................................................................................34
Social.........................................................................................................................................................35
Technological.............................................................................................................................................35
INTERNAL ANALYSIS...............................................................................................................................36
Analysis:.....................................................................................................................................................37
STRENGTHS:...............................................................................................................................................39
WEAKNESSES:............................................................................................................................................39
OPPORTUNITIES:........................................................................................................................................39
THREATS:...................................................................................................................................................39
Analysis .....................................................................................................................................................41
Analysis......................................................................................................................................................42
Analysis .....................................................................................................................................................43
Vision Statement.......................................................................................................................................44
UFONE VISION.......................................................................................................................................44

5. Strategic Marketing & Planning
PROPOSED VISION OF UFONE................................................................................................................44
Mission Statement.....................................................................................................................................44
UFONE MISSION STATEMENT................................................................................................................44
PROPOSED MISSION STATEMENT..........................................................................................................44
OBJECTIVES................................................................................................................................................45
Increase network coverage area at least by 15-20% by the end 2011.......................................................45
To become the leading mobile operator in the country by achieving subscriber wise market share of 35%
or more by 2011........................................................................................................................................45
To install 4500 additional cell sites to ensure customer satisfaction in terms of connectivity by year end
of 2010 ......................................................................................................................................................45
To implement new distribution channel by promoting it on all major platforms starting from December
2010 ..........................................................................................................................................................45
STRATEGIC INTENT....................................................................................................................................45
UFONE’S STRATEGIC DIRECTIONS:.............................................................................................................46
Since the urban markets have been saturated and with the ongoing price wars with the competitor on
existing customer base. Ufone will have to focus on new emerging markets such as Females, Farmers,
Youth in the rural areas of Pakistan...........................................................................................................46
Since the profitability in the future will be based on volume therefore it is very important for Ufone to
come up with services that are unique......................................................................................................46
To beat its major competitor like Mobilink and the other emerging operators like Telenor and Warid,
Ufone needs to increase its availability by increasing its network coverage. It needs to go into extensive
expansion into the untapped markets so that it can expand its operations and also increase its market
share. Ufone has finalized a network expansion contract amounting to about $50 million, which will
enhance the subscriber’s capacity by 10 million. ......................................................................................46
Product Plan..............................................................................................................................................47
We have planned to target the segments of urban market with above mentioned products their pricing,
marketing and distribution plans are further detailed..............................................................................47
Product Pricing..........................................................................................................................................48
Youth.........................................................................................................................................................48
Features:....................................................................................................................................................48

6. Strategic Marketing & Planning
Land lords..................................................................................................................................................48
Features.....................................................................................................................................................48
Farmers (Kisan)..........................................................................................................................................49
Features.....................................................................................................................................................49
Housewives................................................................................................................................................49
Features.....................................................................................................................................................49
MARKET SEGMENTATION & PRODUCT POSITIONING...............................................................................50
Assumption:...............................................................................................................................................50
Marketing in the Rural...............................................................................................................................51
Step 1:........................................................................................................................................................51
Action Plan.................................................................................................................................................52
What .........................................................................................................................................................52
How ..........................................................................................................................................................52
Who ..........................................................................................................................................................52
When ........................................................................................................................................................52
Business Scope..........................................................................................................................................52
Increase the coverage to Rural regions ....................................................................................................52
Installing new infrastructure which will enable to reach rural market customers ....................................52
Engineering and finance CFO of U Fone ....................................................................................................52
January 2011 .............................................................................................................................................52
Market structure / Distribution ................................................................................................................52
Conventional and outdated structure .......................................................................................................52
Reducing the role of middle men from the structure ...............................................................................52
Head of Marketing and distribution ..........................................................................................................52
June 2011..................................................................................................................................................52

7. Strategic Marketing & Planning
Market Share ............................................................................................................................................52
Markets in the rural areas are in the Growth stage showing huge potentials ..........................................52
By introducing new products for each identified market segments and working our way into these
segment.....................................................................................................................................................52
Sales team initially and followed by our new distribution method by which ever subscriber will at as our
salesmen....................................................................................................................................................52
June 2011..................................................................................................................................................52
New Product .............................................................................................................................................53
New packages specially design for the targeted segments .......................................................................53
Ufone – Marketing, Sales & Distribution Department ..............................................................................53
June 2011 ..................................................................................................................................................53
Infrastructure ............................................................................................................................................53
Expanding network coverage area ............................................................................................................53
Setting up new cell sites in rural areas ......................................................................................................53
Ufone technical Department ....................................................................................................................53
January 2011 .............................................................................................................................................53

8. Strategic Marketing & Planning
BUSINESS SCOPE
BUSINESS:
Ufone is committed to providing excellent communication solutions to all its customers whether it’s the
youngsters, professionals, housewives or business executives.
REGION:
Ufone’s Network Coverage
Nationwide
All Mojor Highways Nationwide
4745 cities
International Roaming
International Roaming facility for the Prepaid Subscribers in following countries at reasonable rates
along with no activation charges and security deposit required.
Saudi Arabia Portugal Thailand Cyprus Bangladesh Uzbekistan Tunisia
Sri Lanka Belgium Kuwait
UK UAE Singapore
Ufone GPRS Roaming facility is available with more than 115 Live Operators across 85 countries
To more than 230 live operators in more than 130 countries.
WHAT NEEDS:
Ufone fulfills the need of communication of its customer making their life easier when it comes to
communicate by providing their services on reasonable rates. Ufone offers 2 types of connections to
fulfill their customer’s needs i.e. Postpaid & Pre-Paid connections.
WHO NEEDS?
Postpaid Services Users Prepaid Services Users
All Business Units Housewives
Youngsters
Price Sensitive

9. Strategic Marketing & Planning
VALUE ADDITION
Ufone thrive to provide its customers not only the “attractive cellular packages” but also the value
added services that retain the customer base of Ufone. Presently, it has various succesfull Value added
services but some most exciting VAS services are Uloan, Ushare, call block services and many more.
• Missed Call Notification
• Phonebook Saver
• Voicemail
• Infotainment
• Urdu InfoServices
• Virtual Private Network
• Ufone Al Jazeera News
• Ufone Music Station
• Ufone Call Block Service
• Ufone Self-Service Kiosk
• UBazar
• UHealth
• UKisaan
• Ufone Walkie Talkie
• Ufone Business SMS
• Ufone EDGE USB
• Ufone Blackberry TM

10. BUSINESS WE ARE NOT IN:
Ufone focuses to provide WIRELLESS communication to its customers it does not provide WIRED
communication.
FUTURE DIRECTION
There will be a time when all the telecom companies will be providing its services on more or less
similar rates,the only thing which will defrentiate them from other will be its services.
So Ufone will be focusing on its services with value addition

11. External analysis
CURRENT MARKET STRUCTURE OF INDUSTRY
SEGMENT
END USERS
Price Range
PRODUCT
INFLUENCERS
Pre-Paid Connections
Post Paid Connections
Youngsters, Housewives, Price
Sensitive
Business units
Rs 30/=- Rs
2,000/=
Rs 2,000
onwards
Jazz, Ufone Prepay,
Telenor Talkshawk, Djuice
, Zem
Indigo, Ufone postpay,
Persona, Zahi
Family
members/Friends/Cel
ebrities
Admin, Colleagues
& friends
FRANCHISE &
SERVICE CENTRE
DIRECT SALES
COMPANY
RETAILERS

12. Market Structure
Overview:
• It is obvious from the market structure that the distribution is being done through Franchises, Service
Centers, Retailers & through Direct Sales.
• Franchises & Sales services center’s mainly focus on pre-paid connections as more of the users that
approach them are of pre-paid connections people who do not want to bear any line rent and want to
control their calling expenses.
• Direct Sales focus is more on post paid connections. As the companies that buy these connections for
their employees or high officials are more comfortable in direct interaction.
Pre-Paid Segment:
Pre Paid Segment consists of price sensitive, lower middle/middle class users such as students,
youngsters or housewives. This may also include workers like mechanics, small retailers, plumbers,
chai wala’s, pan wala’s etc. These people require quality but there more focus is on price. Because of
the broad range of services in this segment their could be several reasons for using a particular brand.
For instance if we talk about ufone most youngsters use ufone because their other friends have the
same connections and it gets cheaper for them to stay in touch. With the facility of Easy load it has
become more economical as well as easy to approach.
Post Paid segment:
Post paid segment on the other hand consist of Quality conscious, brand conscious, Upper class,
Business executives. This segment may also have few of the pre-paid users incase they work in a
company where the connections are afforded by the employer. These people are usually financially
strong and thus they are able to spend a whole lot more on their bills.
• Influencers play a very important role in both the segments

13. Further segmentation of the market
COMPANY
FRANCHISE &
SERVICE CENTRE
RETAILERS
Pre-Paid Connections
YOUTH AGE GROUP 15-25
YRS
HOUSEWIVES
MIDDLE AGE GROUP
URBAN MARKET RURAL MARKET
YOUTH
KISAN (FARMERS)
OLD AGE GROUP LAND LORDS AND
MIDDLEMEN
HOUSEWIVES

14. Market Structure’s segment wise analysis
Assumptions:
• Segment distribution amongst urban-rural is based on 32.34% based on the urbanization rate.
• We are also assuming that 98% of the urban population has been already catered
Historical populations
Census Population Urban
1951 33,816,000 17.80%
1961 42,978,000 22.46%
1972 65,321,000 25.40%
1981 84,254,000 28.28%
1998 130,580,000 32.51%
2008 172,800,000 32.34%
SEGMENTAL ANALYSIS

15. • The market structure of the prepaid connections is divided into two major segments that are urban &
rural. These segments are further segmented in to Housewives, old age, youth group middle aged
group & Farmers (Kisans), Youth, Landlords, Housewives.
URBAN MARKET:
HOUSEWIVES
o The total population of Pakistan is around 172
Million. While females in urban areas are
around 55.62 Million (32.34% of total
population). Now females in the urban areas
are about 51 % of the urban population which
makes it to about 28.36 Million. Out of them
11.24 Million are housewives which is our
potential.
o This segment has been saturated and almost 98 % of the segment has been already
targeted.
o This segments needs communication for their social needs like talking with their family
members, friends, or calling on certain food and talk shows
o Average spending on calls Rs 300-900/= per month
o Product targeting this segment=jazz ladies first (Mobilink)
Total Population 172 Million
Total Urban
Population
(32.34%)
55.62 Million
Proportion of
females in Urban
Areas (51%)
28.36 Million
Women under the
age of 15
years(43.4%)
12.3 million
Working women
(30%)
4.82 Million
Housewives(70%) 11.24 Million

16. YOUTH
o This segment is comprised of male/female youngster having ages between 15-30 years.
o Total Youth of the age bracket defined in Pakistan is around 29.15% which is about 50.14
Million. Now the youth that lives in Urban areas is about 16.21 Million (32.34% of total
youth population).It has been an attractive segment since the start and therefore this
segment has been on target by the entire telecom sector since long so now they have
reached the saturation point.
o The need for communication in this segment is to socialize with friends, family, lovers.
This segment also travels a lot so there parents also want them to keep cell phones so that
they can keep in touch which gives rise to safety needs as well. This segment is also very
active in contributing their efforts towards crisis like earthquake, floods etc & towards
religious gatherings so they are active in spreading messages for religious gatherings or
relief camps. This segment is the highest user of SMS facility.
o This segment consists of students, employees having a buying power between Rs.300-
1500 per month.
o Products targeting this segment are
• Djuice(Telenor)
• Talkhshalk(Telenor)
• uth(Ufone)
• Jazz(Mobilink)
• Glow (Warid)
Total youth
population (29.15%)
50.14 Million
Proportion of youth
population living in
urban
areas(32.34%)
16.21 Million

17. OLD AGE GROUP
o This segment is comprised males/females of ages
above 60 years.
o This segment is about 3-4% of the total urban population which makes it very un-
attractive.
o The need of communication in this segment is to get in touch with old friends, family
members or get services like rider, doctor etc….
o Average spending is Rs 300-700 per month
RURAL MARKET
LANDLORDS
o These are people holding more than 300acres of land. We
are assuming that these land lords are around 3% of total
rural population which makes it about 3.49 Million
Total Population of
old aged people
(5%)
8.6 Million
Proportion of old
age group in Urban
Areas
2.78 Million
Proportion of old
age group in Urban
Areas (3-4%)
1.76-2.354
Million
Total Population 172 Million
Rural Population
(67.66%)
116.37 Million
Land Lords (3%) 3.49 Million

18. o The need of communication services in this segment is for business needs, social needs,
security needs and transfer of information needs.
o Average spending of this segment is around Rs 2000-5000 per month
YOUND INDIVIDUALS
o This segment consist of males/females of ages between 15-30 years
o The total youth population previously calculated was 50.14 Million out of which 67.66% live in
the rural areas of Pakistan totaling it to 33.93 Million
o The need for communication in this segment is to socialize. Since they travel to other villages
& regions they need to stay with there family & business partners. As they also do not have
much sources of entertainment so communication is also a source of entertainment for them.
o There average spending on telecom is Rs10-20 per day
RURAL WOMEN
Total Population 172 Million
Total Youth
population
50.14 Million
Total youth in rural
areas (67.66%)
33.93 Million

19. o This segment consists of females that work in farms or live
at home.
o This segment’s potential is about 59.35 Million
o The need for communication for this segment is to communicate with other females, their
childrens & husband
o There average spending on calls is around Rs100-200 per month
Total Population 172 Million
Total Females in
Pakistan( 51%)
87.72 Million
Proportion of
females in Rural
Areas (67.66%)
59.35 Million
Working women
(20%)
11.87 Million
Housewives (80%) 47.48 Million

20. FARMERS (KISAN)
o This consist of males/females working in the agriculture segment of Pakistan
o The total market size is about 8.78 Million females & 17.02 Males totaling it to 30.13 Million
o The need for communication in this segment is to get work related information and for other
social needs.
Total Rural
Population
116.38 Million
Proportion of
females in Rural
Areas (51%)
59.35 Million
Working women
(20%)
11.87 Million
Proportion of
Women in
Agriculture (74%)
8.78 Million
Proportion of Males
in Rural Areas (49%)
57.02 Million
Working Men in rural
areas(80%)
45.62 Million
Men working in
agriculture (37.3%)
17.02 Million

21. External Analysis

22. MARKET STRUCTURE OF TELECOMMUNICATION INDUSTRY
WLL
2%
Fixed
5%
Cellular
93%
Market Structure Of
Telecommunication Industry
Analysis
• Cellular sector consists of 93% of the telecommunication industry, followed by the fixed lines and Wire
less local loop
• WLL sector is still in the introductory stages and has been unable to grab much of the market because
of their limited coverage

23. Market Size and Growth of Mobile Sector—Subscribers (Past 4 years)
Figures in
millions 2005-2006 2006-2007 2007-2008 2008-2009
MARKET
SEGMENT Realized
Un-
Realized Realized Un-RealizedRealized Un-RealizedRealized Un-Realized
Urban
market
HOUSEWIVE
S 9.95 0.64 10.14 0.65 10.60 0.44 11.01 0.23
YOUTH (15-
30 years) 14.73 0.92 14.9 0.61 15.62 0.31 15.88 0.32
MIDDLE
AGED (31-60
years) 11.75 0.82 12.18 0.51 12.51 0.52 12.9 0.26
OLD AGED(60
and above) 1.98 0.11 2.06 0.08 2.11 0.1 2.18 0.04

24. Analysis of Market Size:
• The analysis suggest that all the segments in urban areas were growing at a faster rate in 2006-2007
while in 2008-2009 the growth has slowed down from 2.5% to 2.3% in 2008-2009
• Pre-Paid users are very price sensitive users, as a result one individual holds more than one
connection at a time providing him the opportunity to switch to a cheaper service provider at any
time.
• The segments that we have selected for our analysis in the urban areas still has a potential of around .
81 million subscribers, which comes from Housewives, Youth & middle aged people.
• The mobile operators are investing heavily in the marketing and advertising activities because the
prepaid users are not really brand loyal and willing to switch over to other brands in order to avail the
lower tariff and other value-added services
• The rapid growth in the last year has come around due to intense competition leading to the lowest
tariff, maximum coverage, value-added services, better quality and lastly the affordability of the
handsets

25. Market Size and Growth of Mobile Sector—Subscribers (Past 4 years)
2005-2006 2006-2007 2007-2008 2008-2009
MARKET
SEGMENT Realized
Un-
Realized Realized
Un-
Realized Realized
Un-
Realized Realized
Un-
Realized
Rural Market
Landlords 1.97 1.31 2.00 1.34 2.22 1.20 2.44 1.05
Youth 19.05 12.70 19.33 12.89 21.51 11.58 23.57 10.10
Kisan(Farmers) 24.3 16.2 24.75 16.5 27.4625 14.7875 21.09 9.03
Rural Women 33.45 22.31 34.07 22.72 37.79 20.3 41.54 17.8

26. Analysis
• Now while analysing the rural market we can see that is a huge potential in rural womens segment of
about 17.8 million still being untapped.
• The other segment that could catch the eyes of the telecom players could be the Kisan & Youth’s
segment totalling to a market of 19 million.
• Landlords are few in numbers but they provide a very lucrative market in rural areas as they spending
power is far more better then the other rural segments.
• As there are not many players fighting in the rural market it is the best time to tap the untapped
segments specially the youth that has previously shown great results in the urban areas.
Competitors Analysis

27. *source PTA
Market Overview:
• This is the market share in terms of subscriber of the telecom sector in 2007-08 & 2008-09.
• From the above two charts it can be observed that Telenor, Ufone, Warid & Zong have increase there market
share, while mobilink & Instaphone on the other hand have shown a decline.
• While Instaphone’s share is declining because it is stuck in the middle and soon it is expected that it will close its
operations in Pakistan
• Mobilink is the market leader in terms of subscriber base and revenue and the reason is that Mobilink has been
in operations since 1994 and has been able to retain most of its customers through their services. Mobilink
customers are loyal and do not want to switch over to the competitors even though Mobilink’s tariff are the
most expensive in the market. Only the price sensitive customers in the pre-paid segment have switched
because of which we can observe the decline in market share.
• Zong has come in recently and it has been able to gain a substantial market share within a year with
their attractive packages. Zong customers increased rapidly because they provided excellent packages
for price sensitive customers
• Warid is another key player in the market which has gained a substantial share of the market, but it
still needs to work harder in order to compete with the other leading competitors. Warid’s packages
are cluttered and people are still confused about their packages.
Urban Competitor's

28. Analysis
Figures in
million
Current
Market
Share
Housewives Youth Middile Aged Old Aged
Realiz
ed
Unrealiz
ed
Realiz
ed
Unrealiz
ed
Realiz
ed
Unrealiz
ed
Realiz
ed
Unrealiz
ed
Mobilink 30.88% 3.42
0.2
3
4.90
0.3
2
3.98
0.2
6
0.67
0.04
Ufone 21.20% 2.33 3.37 2.73 0.46
Warid 18.96% 2.09 3.01 2.44 0.41
Telenor 22.15% 2.43 3.52 2.86 0.48
Zong 6.77% 0.74 1.07 0.87 0.15
Instaphone 0.04% - - 0.12 0.02
100.00%
*All above realized segment are divided amongst the competiton based on there current market share
*while unrealized segment are divied equally as all of them have the same opportunity to grap them
Rural Competitor's
Analysis
Figures in
million
Assume
d Market
Share
Landlords Youth Kisan(Farmers) Old Aged
Realiz
ed
Unrealiz
ed
Realiz
ed
Unrealiz
ed
Realiz
ed
Unrealiz
ed
Realiz
ed
Unrealiz
ed
Mobilink 52.50% 1.28
1.05
12.37
10.10
11.07
9.03
21.81
17.80
Ufone 15.00% 0.37 3.54 3.16 6.23
Warid 3.00% 0.07 0.71 0.63 1.25
Telenor 28.00% 0.68 6.60 5.91 11.63
Zong 1.50% 0.04 0.35 0.32 0.62
Instaphone 0.00% - - -
100 %
Analysis:
• Looking onto the urban competition grid it is very clear that mobilink has the greatest share it is
because they were the first to come up with the prepaid connections. They are also the first option
of the subscriber because of there excellent connectivity and coverage. Mobilink has remained
expensive through out working on brand loyalty and focusing on high income group.

29. • Ufone entered the market to cater the needs of the price senstive customers previously they had a
higher share putting its position to 2nd
highest in terms of subscriber base. They were able to grow
at a very fast rate as previously no other telecom player was targeting the lower income group. This
strategy was then copied by Telenor and they came up with flourishing colors snatching ufone’s
position in the urban areas.
• Even tough mobilink, ufone & telenor have a catered a huge rural market segment but still there is
huge potential not being tapped by any of them.
• Telecom players should come up with easy to understand and segment specific product for the rural
areas as currently none of the existing players are offering such segment specific products.
UFONE DISTRIBUTION STRUCTURE
• The ufone’s Warehouse is in Islamabad.
• In past times, ufone had the distribution channel as follows.

30. Analysis
Ufone had its ARD channel called as “Authorized Retail Distribution”. They were the authorized
Intermediaries who were supplying the products to the respective franchises and retail outlets. But
there were certain issues and problems lying in the distribution structures. Few of them were the
non- sufficient availability of products in the retail outlets, weak relations with retailers and
inadequate retail promotions which resulted in low sales. But now Ufone has eliminated the role of
ARD in its Distribution structure and now it is selling its products directly to franchises and the
retailers through their regional office team. . The franchises are provided with the back end support
system which is facilitated by the service center team whereas the retailers are considered as the
“Ufone Potential Customers” since 90% of the products and services are being sold by retailers to the
end consumers.
New Distribution Structure
This new approach towards distribution structure has been implemented about an Year ago and now
its generating high revenue to the company since all of the issues have been rectified. The new
distribution channel is as follows.

31. DISTRIBUTION STRUCTURE
DISTRIBUTION STRUCTURE CONNECTION/ SIMS
SERVICE CENTER 5%
RETAILERS 90%
DIRECT SELLING 5%
TOTAL 100%

32. Product Life Cycle
Urban Market
Analysis:
• Prepaid product in urban market has reached its maturity level as almost 98% of the urban market has
been already catered.
• After the introduction of telecom services in 1994 cellular services companies started off by targeting
the urban areas which later on more companies joined with less and less tarriff rates as compared to
previous years.
• Previously only the higher income group was being targeted but as the prices declined the lower
income group was also catered so leaving only a few subscribers in the urban areas leading the
product to maturity.

33. Product Life Cycle
Rural Market
Analysis:
• Previously the rural market was never tought of as a potential market because cell phones and calls
were expensive and therefore it was treated as a luxury product in the urban areas.
• Prepaid product in rural market is in the growth face. It still has great potential as if we talk only about
the female segment around 17.8 Million of the urban females are still untapped.

34. INDUSTRY DRIVING FORCES
POLITICAL
• The current political situation in Pakistan is driving investors out of the industry, the
impact of which can also be seen in the telecom sector. As investors have reduced
there investment share in Pakistan during last year
• With the budget year 2010 it was proposed by the political parties that certain laws
should be passed to discourage the ill saying against the political leaders/government
officials, the suggestion further included increased in the tariff rate of value added
services such as SMS
Economical
• The economic condition of Pakistan has declined due to which the average income of
the country is going down, considering this fact as Telecomunication industry is
planning to enter the rural regions of Pakistan where Cell phone are still considered
as a luxury and not a necessity, therefore the companies will find it difficult to position
its product as ever day required product.

35. Social
• The social situation has been favorable for the telecom sector as the as now cell
phones are considered as a basic necessity rather than a luxury. Besides that due to
the current security threats to the country people feel comfortable while they are
having cell phones which provides instinct access to all news at any given point in
time
Technological
• There is a huge room in this particular industry as new technologies are already in use
in western countries which are yet to be introduced in Pakistan such as 3G service
which enables a person to make video calls through these mobile devices.

36. INTERNAL ANALYSIS

37. Lagging Indicators
Description 2005-06 2006-07 2007-08 2008-09
Subscribers (Mn) 7.5 14 18 20
Growth Rate- Subscribers - 87% 29% 11%
Market Share (%)- Subscribers 22% 22% 20% 21%
Revenue (Rs. In Mn) 16,098 21,867 27,466 40,062
Growth Rate- Revenue - 36% 26% 45%
Market Share (%)-Revenue 17.90 16.42 15% 18.86%
Analysis:
• The number of Ufone subscribers is increasing every year. This is because Ufone is trying to be
competitive enough by regularly introducing new packages and value-added services like Ufone Song
Catcher, Walkie Talkie etc. and so providing people with all the new things that others are not
offering.
• Although in the current scenario where there is very aggressive competition between the mobile
operators, Ufone subscribers are increasing but the rate at which they are increasing is declining every
year.
• The growth rate of Ufone subscribers has decreased from 87% in 2006-07 to a mere 11% in 2008-09.
The reason for this is that a number of new mobile operators came into the scenario and they were
able to attract the consumers with their innovative offers. The decline was also observed because
previously only ufone was targeting the price sensitive customers but then telenor and warid also
joined the race.
0
5
10
15
20
2005-
06
2006-
07
2007-
08
2008-
09
Ufone subscribers
0
0.2
0.4
0.6
0.8
1
2005-
06
2006-
07
2007-
08
2008-
09
Ufone
Subscribers
Growth Rate

38. ANALYSIS:
• The revenue of Ufone is increasing but at a fairly decreasing rate, pretty much the same scenario as
the number of subscribers.
• Initially Ufone had been able to grab the market because it was the only mobile operator which was
catering to the masses which are generally price-sensitive.
• Now Telenor and Warid have come in with the same strategy of gaining the market share with low
tariffs, which has increased the pressure on Ufone to come up with innovative value-added services
and packages to gain the market share once again.
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2005-06 2006-07 2007-08 2008-09
Ufone's
Revenue(Mn)
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
2005-06 2006-07 2007-08 2008-09
Ufone's Revenue
Grow th

39. S.W.O.T Analysis
STRENGTHS:
1. Ufone is the subsidiary of PTCL, which is owned by Etisalat (Emirates Telecommunication
Corporation), thus it has strong financial backing.
2. International Roaming to more than 210 live operators across 123 countries; without any
security deposit or activation charges.
3. Ufone positioned itself for the masses in terms of providing affordable tariff.
4. Established customer base includes even the lower middle class.
5. Ufone is offering more and better Value Added Services (VAS) than its competitors i.e.
Ufone’s Walkie talkie, Call block service etc.
WEAKNESSES:
1. Ufone’s network connectivity is weak.
2. Billing issues in terms of deduction of money in your prepaid connection
OPPORTUNITIES:
1. Easy availability of funds from their parent company.
2. Target the corporate sector with their Postpay services.
3. Untapped regions of the country especially the rural areas and northern areas
THREATS:
1. Aggressive price wars by the competitors
2. mobile portability service enable users to switch services without changing their numbers and
codes

40. S-O Strategies W-O Strategies
 With great financial backing and decreasing
mobile handset cost Ufone can now offer its
products to lower income class also more
aggressively
 With this great financial backing Ufone will
have an edge to reach the emerging market
such as rural women.
 Since Ufone has always been in the first row
to implement new technologies therefore
with good financial backing it will be helpful
for implementing 3G
 As Ufone has an brand image of low cost
service provider thereforer this will give Ufne
an extra edge to penetrate in Rural Markets
of Pakistan
 Huge potential market in the rural area of
Pakistan requires good network coverage.
 Already Ufone has a weak network coverage and
with the upcoming 3G technology Ufone will
have to spent more on its network coverage in
order to support it.
 Since the urban markets have reached its
saturation and most part of the rural markets
have also been covered Ufone has to work on its
network in rural areas to reach the market.
S-T Strategies W-T Strategies
• Ufone should develop attractive
product and packages to cover the
customer base more as price war will
result in the shrinkage in the Profit
contribution and market will be
volume base.
 As market is highly competitive and % of profits
per call has reduced and profitability is now
more volume based therefore with less network
coverage u fone is losing out on its potential
customers in the rural area of country. Which
will as a result effect its profits
 Problem in the operation leads more customer
dissatisfaction and with the introduction of MNP
customer are more active in switching networks
Customer Buying Criteria Important Factors

41. Important
Factors in
Urban
Market
Absolutely
Critical
Very
Important
Quite
Important
Nice to
Have
Not
significant
Don’t Want
it
5 4 3 2 1 0
Tariff Rates
SMS Package
MMS Package
GPRS Service
3 G service
Voice Clarity
Network
Coverage
Analysis
• Customer are very sensitive to the Tariff rates of their connection and due to this very low brand
loyalty is present in this industry
• Other VAS (Value Added Services) such as SMS,MMS and GPRS are relatively less important factors but
even then there is high degree of importance attached to the VAS.
• Voice Clarity and Network Coverage are also two major factors when it comes for a customer to
decide a suitable connection for himself.
Customer Buying Criteria Important Factors

42. Important
Factors in
Rural
Market
Absolutely
Critical
Very
Important
Quite
Important
Nice to
Have
Not
significant
Don’t Want
it
5 4 3 2 1 0
Tariff Rates
SMS Package
MMS Package
GPRS Service
3 G service
Voice Clarity
Network
Coverage
Analysis
• Tariff rates is very important in the rural areas due to the fact that the average household income
is relatively low in the rural markets.
• Network coverage and voice clarity is equally important when it comes to rural market as they are
remotely located in various part of Pakistan where network coverage is very low and it requires
huge investment for the telecommunication companies for setting up new infrastructure to reach
those customers.
• Value added services such as SMS,MSM & GPRS are relativly insignificant when it comes to the
rural market due to the low literacy rate and the people in those segment does not have the ways
and means to use the VAS.

43. Customer Rating of different cellular services based on there buying criteria
NON PRICE
UFONE TELENOR WARID ZONG
ATTRIBUTES
AFFECTING WEIGHTAGE
CUSTOMER
CHOICE %
MOBILINK
PRODUCT
RELATED 50% Rating on the scale of 1 to 10
1. Tariffs 25% 9 7 9 8 9
2. VAS 25% 8 6 8 7 8
SERVICE
RELATED 50%
1. Network
Coverage 25% 8 10 7 7 6
2. Voice
Clarity 25% 8 9 9 9 6
Total 100%
82.5 80 82.5 77.5 72.5
Analysis
• Overall U Fone and Telenor are equal in terms of there products features in the eye of customer
and hold equal position in the market
• Mobilink is considered to have high calling rates making it unattractive for the new customers
• Zong has issues with coverage and voice clarity.

44. Vision Statement
UFONE VISION
“In order to evolve with our customers and to keep pace with your needs, we rejuvenated and revamped our
image by changing our visual identity.”
PROPOSED VISION OF UFONE
“To become number one cellular service provider in Pakistan by gaining excellence in communication
services”
Mission Statement
UFONE MISSION STATEMENT
“At Ufone we understand the value of words and the need to communicate effectively and efficiently at all
levels of society, which is why our primary focus is on U, our valued customers bring strength to our company.”
PROPOSED MISSION STATEMENT
“To become number one by exploring new and untapped market increasing our customer based by
providing new and unique Services”

45. OBJECTIVES
• Increase network coverage area at least by 15-20% by the end 2011
• To become the leading mobile operator in the country by achieving subscriber wise
market share of 35% or more by 2011.
• To install 4500 additional cell sites to ensure customer satisfaction in terms of
connectivity by year end of 2010
• To implement new distribution channel by promoting it on all major platforms starting
from December 2010
STRATEGIC INTENT
“Become the 1st choice of the customer in both urban & Rural Areas”
Key issues
– Network Coverage (Rural Areas)
– Operational Issues (Billing & package conversion issues)
– Cultural Issue at Ufone

46. STRATEGIC DIRECTION
UFONE’S STRATEGIC DIRECTIONS:
• Since the urban markets have been saturated and with the ongoing price wars with the
competitor on existing customer base. Ufone will have to focus on new emerging markets
such as Females, Farmers, Youth in the rural areas of Pakistan
• Since the profitability in the future will be based on volume therefore it is very important
for Ufone to come up with services that are unique.
• To beat its major competitor like Mobilink and the other emerging operators like Telenor
and Warid, Ufone needs to increase its availability by increasing its network coverage. It
needs to go into extensive expansion into the untapped markets so that it can expand its
operations and also increase its market share. Ufone has finalized a network expansion
contract amounting to about $50 million, which will enhance the subscriber’s capacity by
10 million.

47. Product Plan
We have planned to target the segments of urban market with above mentioned products
their pricing, marketing and distribution plans are further detailed

48. Product Pricing
Youth
Features:
The product that will be offered to the Youth will have the following features:
• 25 pc per 30 Seconds on any network
• 1 hour free after 2 mins
• 24 FM services free
• Free Sports update
• 5 Friends and family numbers (Rs 10 per addition charges)
o 45 pc per Minute all day
• On per minute incoming call subscriber will get 10 Pc
Land lords
Features
The product that will be offered to the land lords will have the following features:
• 65 pc per Minute
• Comodity Market Updates (Pricing) (Rs 100 per month charges)
• 24 hours FM services free
• Free Sports update
• News Updates (Rs 50 activation charges) and monthly Rs 10

49. • 100 free minutes per month Ufone to Ufone only
• F & F services totaling 7
o 55 pc per minute
Farmers (Kisan)
Features
The product that will be offered to the Farmers will have the following features:
• 35 pc per 30 Seconds on off network
• 20 pc per 30 seconds on on network
• 24 FM services free
• Free Cooking recipes
• Health & Care advices
• 5 Friends and family numbers
– 45 pc per Minute all day
• On per minute incoming call subscriber will get 10 Pc
Housewives
Features
The product that will be offered to the Housewives will have the following features:
• 35 pc per 30 Seconds on off network
• 20 pc per 30 seconds on on network
• 24 FM services free
• Free Cooking recipes
• Health & Care advices
• 5 Friends and family numbers
– 45 pc per Minute all day
• On per minute incoming call subscriber will get 10 Pc

50. MARKET SEGMENTATION & PRODUCT POSITIONING
Assumption:
We are assuming that out of 100% of Ufone’s market share, 85% is urban and 15% is rural
Market
Segment
Current
Revenue
Projected Growth Existing/new packages
Contribution in
Profitability
%
Prepaid Urban 34,053 M 1.5%
Prepay existing
- Ufone Prepaid
- Ufone Super Ghanta
- Ufone Ghanta Package
- U Fone Life Plus
- Uth Package
- Tension free package
- Ufone Paanch Ka
Pandrah
- Ufone Uwon
90%
Prepaid Rural 6,009 M 20%
Prepay New
- Hum Jawan
- Hum Karobar
- Hum Kisan
- Hum Aurat
10%

51. Marketing in the Rural
Step 1:
• Free distribution of SIMS & Cell phones with local languages targeted to different segments differently
o For Kisan: collaboration with various agri products like pestisides, fertilizer etc we will give free
SIMS & Cell phones
o For Rural Females: Door to Door our female sales representative will distribute free cell
phones by competition( like asking them simple questions related to use of mobile)
o For Youth: Introductory Mela will be organized to target this segment and we will distribute
free phones by simple competitions like one leg race, Kabadi Match etc
o For Landlords: This segment will be targeted by our senior sales representative.
• The main aim behind organizing the carnival and other activities is with the sole purpose of breaking
into the market and expanding the customer base
Step 2:
• Offering incentives to the existing subscribers as and when they introduce a new subscriber to Ufone,
by doing so Ufone will save the cost of developing a sales team in rural areas and in return the
subscriber will also benefit. This will help create a sense of belongingness to our customer with Ufone
making them a more brand loyal person and making the customer not just customer but an integral
part of the Ufone Family
• The following diagram represents how our customers will work as a sales men and in return both the
company and subscriber will benefit
• With the introduction of every new customer(A) by existing subscriber(B) will get Rs 20 balance and
going forward every call that Customer A does Subscriber B will get 5 Bonus points which he can utilize
at various places acting as discount.
COMPANY
RETAILERS
YOUTH
LAND LORDS AND
MIDDLEMEN
HOUSEWIVES
KISAN (FARMERS)
Pre-Paid Connections
RURAL MARKET

52. Action Plan
What How Who When
Business Scope
Increase the coverage
to Rural regions
Installing new
infrastructure
which will
enable to reach
rural market
customers
Engineering and
finance CFO of U
Fone
January 2011
Market structure / Distribution
o Conventional
and outdated
structure
o Conventional
distribution
structure is not
appropriate for the
rural market
o Reducing
the role of
middle men
from the
structure
o Targeting the
new market
with entirely
new method
o Head of
Marketing
and
distribution
o Product manager
and sales
managers
June 2011
Market Share
Markets in the rural
areas are in the
Growth stage
showing huge
potentials
By introducing
new products
for each
identified
market
segments and
working our
way into these
segment.
Sales team initially
and followed by
our new
distribution
method by
which ever
subscriber will
at as our
salesmen
June 2011

53. New Product
hUm Jawan
hUm Karobar
hUm Kisan
hUm Aurat
New packages
specially design
for the targeted
segments
Ufone – Marketing,
Sales &
Distribution
Department
June 2011
Infrastructure
Expanding network
coverage area
Setting up new cell
sites in rural
areas
Ufone technical
Department
January 2011