EXECUTIVE SUMMARY

As internship is a requirement of the MBA and it also provide an opportunity to

the student that he or she practically apply its knowledge during his or her stay in the
organization.
For this purpose I have choose Ufone. An organization, which is fastly growing in
telecommunication industry, its head office is situated in F-7 Markaz.
It’s memorable time which I Spent in Ufone. I am the student of MBA (Marketing), so
for this purpose I choose the Sales & Distribution department of Ufone situated in Blue
Area Razia Shareef Plaza.

It’s an opportunity to familiar with the organization’s environment, how the

different tasks are happen over there. It’s wonderful experience of my life.

1
2
COMPANY PROFILE

An organization’s culture usually reflects the vision or mission of the organization’s

founder. Because the founder has the original idea, Ufone also have biases on how to
carry out the idea. Ufone is one of the main players of the telecom industry. Since its
launching, it has gathered a large number of customers.
Ufone was established to operate cellular telephony. The company commenced its
operations, under the brand name of Ufone, from Islamabad on January 29, 2001.
During the year 2006, as a consequence of PTCL’s privatization, 26% of its shares were
acquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL,
the management of Ufone has also been handed over to Etisalat. During the year July
2005 to June 2006, Ufone continued on the path to success. The Company further
expanded its coverage and has added new cities and highways. Ufone has network
coverage in more than 750 cities, towns and across all major highways of the country.
During the year Ufone successfully completed the network expansion 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.
During the year Ufone adopted the policy of simplified tariffs with no hidden charges,
which resulted in positive impacts on the usage trends of subscribers as well as total
subscriber base, which has increased from 2,579 k in June 2005 to 7,487 k in June 2006.
Ufone currently caters for International Roaming to more than 230 live operators across
130 countries and introduced International roaming facility for prepaid subscribers in
Saudi Arabia and United Arab Emirates with lowest rates, featuring no security
deposit and activation charges.
The company has also been awarded a new License for providing cellular services in
Azad Jammu & Kashmir and Northern Areas.

3
OPERATING PERFORMANCE

Ufone’s operational performance has been very encouraging. Despite the stiff
competition in Pakistan telecom market which has led to reduction of prices to bare
minimum level, due to its aggressive policies and exercising strict control over expenses
the Company managed to improve its revenue and after-tax profit by 87% and 54%
respectively, as compared to last year.

FUTURE 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 installed
capacities 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 a

benchmark 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.

MILESTONES

Ufone is the only GSM Operator with 2.5G GPRS service, which is the ‘next generation’
technology and offers:
 High Speed Data Services through Your Ufone.
 WAP Data Services.
 Multi-Media Messaging Service (MMS).
 First Class Customized Data & Voice Solutions for our clients including Mobile
Office.

4
  Offer Real VPN System for corporate clientele.

OUR FIRSTS

Ufone takes pride in setting standards through market initiatives and is the first cellular
company in Pakistan to:
 Offer real value for money packages
 Introduce 6 months free incoming
 Offer 32k Power SIM
 Start GPRS / MMS / WAP Data services
 Offer Real VPN System for corporate clientele

5
6
 ORGANIZATIONAL STRUCTURE

Ufone Management:

Abdul Aziz (President & Chief Executive Officer)

Naveed Khalid Butt (Chief Officer)

Muhaamad Aslam Khan (Chief Technical Officer)

Muhammad Nadeem Khan (Chief Financial Officer)

Saleem A Chauhan (GM Admin & Procurement)

Abdul Rehman Faisal (Senior Manager Human Resources)

Maj. Gen. (R) Hamid Hassan Butt (GM Coordination)

7
HIERARCHY OF SALES & DISTRIBUTION DEPARTMENT
Younis Iqbal Sheikh
(Vice President)

Sales & Corporate Sales

Distribution

Aamir Mumtaz
(Sr. Manager)

Khwaja Zulqarnain
(National Manager
Franchise Operation

Hamid Moeen Niazi

(Planning and Polices
Manager)

Omemma Butt
(Promo Manager)

Noman Zafar
(Assistant Manager)

Raja Haroon Akhtar Mian Bilal Mehmood Fawad Bhatti

(S & D Incharge) (S & D Executive) (Retail Analysis)
8
 SALES & RETAIL TEAM RETAIL TEAM

OLD SALES NEW SALES OLD

TEAM AND RETAIL RETAILTEAM
Team

Regional Sales Regional Sales Regional Retail

Manager Manager Manager

Zonal Sales Zonal Sales Assistant Regional

Manager Manager Retail Manager

Distributor Sales Area Sales Regional Sales

Managers Coordinator

Authorized Retail Authorized Retail

Distributor Distributor

Franchise

9
10
 PRODUCTS AND SERVICES

Ufone is providing two kinds of services to satisfy its customer’s needs as

efficiently as possible. These are:

 PREPAY.
 POSTPAY.

PREPAY:

Ufone welcomes everyone to its prepay community where everyone can be their self, live
life to the fullest and talk up a storm with the most amazing calling and SMS rates.
At Ufone, they know people have a constant need to stay in touch with friends and
family which is why Prepay scratch cards are available in three denominations to suit the
budget; so a person can charge phone without making it hard on the pocket.
To say nothing of the entire mind boggling value added services it offers; they say
a picture is worth a thousand words wouldn’t a person rather send an MMS when you
have so much to say? There’s Voice mail for when you are unable to attend your calls, of
course one needs to keep in touch with friends all the time and calling isn’t always
convenient, that’s where SMS’s come in; so you can put your thumbs to good use.
What’s more you can download all sorts of cool picture messages, wallpapers, ring tones,
logos and what not from the Ufone website onto your cell phone.
Ufone Prepay is everyone’s brand, hip and always with us, vibrant, innovative and
unique, with an identity that’s entirely its own.

A) Recharge Options:

Recharge your Prepay anywhere, any time you want with ease & convenience. Ufone
Prepay offers you just that. Now recharge your account with our Scratch Cards,
Electronic Vouchers, ATM or SMS.

11
Scratch Cards
Now recharging your Prepay account is easier and simpler then before with the most
pocket friendly & affordable scratch card denominations.

U-TOP UP:

Ufone has launched a recent offer for its pre-paid customers. It is just like easy-
load like its others competitors. You can load from as low as Rs. 10 to own wards,
whatever amount you want.
B) SMS Bundle Offer:
Prepay offers unbeatable SMS Offer.
Ufone introduces an unbeatable SMS bundle offer which provides lowest SMS rates to
any network in Pakistan.

PACKAGES SUBSCRIPTIO NO. OF CHARGE/SMS VALIDITY SMS 'SUB' TO

N FREE SMS

Package 1 75 1000 7.5 paisas 30 days 601

Package 2 50 500 10 paisas 30 days 602

Package 3 25 165 15 paisas 15 days 603

Package 4 150 Unlimited Fair use policy* 30 days 604

C) U-Circle:

12
Prepay provides an easy way to call Friends & Family
Ufone makes it easy for all prepay users to call friends & family with U Circle. Now one
can talk more for less with the most economical rates to call Ufone Circle.

U-Circle (FNF)

Numbers Allowed Call Charges

4 Ufone 45 paisas*
1 PTCL 45 paisas*

D) International Calling:

Now make international calls with your Prepay at lowest ever call rates
Ufone prepay offers the most affordable international call rates, letting users stay
connected with their loved ones even when they are out of the country.

E) Products and Features:

With a wide range of products and features, Ufone Prepay connection is a complete
communication solution that offers:
 SMS.
 GPRS.
 MMS.
 Call Features.
 International Roaming
 Variety of amazing Mobile Products.

POSTPAY:

13
Endless possibilities of Ufone Postpay, a connection that connects with determination to
conquer all odds.
Ufone Postpay is a brand that keeps up with customers, understanding their drive
for victory in the business arena and sense of belonging in the personal life. On the road
to success, Ufone Postpay is a brand for those who expect more from life, from
themselves and from their phones.
A) Tariff
Ufone Postpay calling tariff
Ufone Postpay provides users with matchless call plans to suit their lifestyle and
connectivity drive. Ufone Postpay for business or leisure & stay connected all the time.

Following is our tariff offering,

Postpay ZLR Postpay Postpay Postpay

Ease Value Extra
Monlthy Line Rent (Rs.) 0 199 399 999
Outgoing Call Charges (per 30 seconds)
Ufone to Ufone 0.90 0.60 0.50 0.40
Ufone to Other Mobile Operators 1.15 1.10 1.10 0.90
Ufone to PTCL & WLL Network 1.00 0.80 0.70 0.60
(Rs.)
SMS Charges
Ufone to Ufone (Rs.) 0.5 0.5 0.5 0.5
Ufone to Other Mobile Operators 1 1 1 1
(Rs.)
Free
Free Minutes 0 200 400 1000
Free SMS 0 25 50 100
Security Deposit
Local & Nationwide (Rs.) 750 1,000 1,500 2,500
International Dialing (Rs.) 2,500 2,500 3,000 5,000
International Roaming (Rs.) 15,000 15,000 15,000 15,000

International Calling Tariff

Making distances smaller

14
Now distances have no meaning. Ufone Postpay believes distances matter little where
emotions and relationships are concerned.
When one needs to get in touch with a loved one or a business contact no matter where
they are, users can count on Ufone Postpay to get them through, and at competitive rates.
C) Payment Choices
Postpay open up a world of Value Added Services, Users also have so many
payment options to choose. Easy and convenient bill payment choices with various
modes for timely payments; Select the mode of payment and payment location as per
your convenience.
Payment Modes
 Cash or Credit Card
 Pay Via SMS
 Direct Debit
 Using MCB ATM

Mobile Products
It’s all about U!
Experience complete convenience with,

 Virtual Private Network

 Call Management
 Missed Call Notification
 Phonebook Saver
 Host of Infotainment and Entertainment services on cell phone.
Coverage
Ufone aims to provide users with wider coverage, superior connectivity, clear signals &
voice quality
Covering over 750 key destinations, Ufone is the ultimate means to stay connected
wherever your business takes you allowing seamless roaming through the network
providing the best nationwide coverage.
It is divided into four regions, which are given below.

15
North
South
Central-1
Central-2
Corporate Services
Ufone provide users with high-end corporate solutions for their convenience. Whether
one’s on a business trip or in a meeting, in the country or abroad, business needs are
satisfied by Ufone corporate solutions. It offers the following features and more.
 VPN – Personal Network
 GPRS
 MMS
 International Roaming
 Mobile Office
 Call Management
 Private Numbering Plan
 Customized Solutions

Ufone/ABN AMRO Credit card

ABN AMRO introduces its first co-brand Credit Card with Ufone, one of the leading
telecommunication companies in Pakistan. Now, not only can you enjoy special packages
with Ufone, but the more you talk, the more you can earn on your ABN AMRO Ufone
Credit Card.

16
17
 MARKET ANALYSIS

Taking a glimpse of the market, we will come to know that currently there are five
major big players in the telecom sector namely as:
• Ufone.
• Mobilink.
• Telenor.
• Warid.
• Zong
Two other companies like Paktel, Instaphone, once used to be in the competition but
today they are almost vanished. There has been a fierce competition among the above
mentioned 5 companies for the better half of the cake. The competition among these
operators has resulted in:
• Decrease in the tariffs/prices, both for the equipment and service.
• Offer of many value added services to customers according to their requirement.
• Increase in the coverage provided by these operators to target new customers and
provide more value to existing customer.
• More refined customer segmentation and service offers to attract greater number
of customers.

MARKET SEGMENTATION

Market segmentation is an important tool to provide services, which are tailored

to the specific needs and expectations of the intended customers. Besides it helps in
effective allocation and utilization of the resources. In case of Pakistan, exact definition
of customer segments is difficult because of lack of data on various characteristics of the
population. Marketing studies and research and specific to the mobile telephony in
Pakistan are also non-existent.

GEOGRAPHIC SEGMENTATION

18
 Geographically it is very important for Ufone to provide a good level of coverage
right from the start. The reason for this is that other mobile operators, who have a head
start of many years over Ufone, are fast expanding their networks where they are able to
provide a country wide coverage to their customers since coverage is very important
element for the success in the business, Ufone is also providing a substantial coverage
right from the start.
32% of the population in Pakistan lives in the urban areas while rest lives in rural
areas. Ufone is not only providing service to its urban customers but also to its rural
customers as well. Solid evidence is covering over 750 key destinations. Like other
competitors, Ufone is expanding its network rapidly.
As discussed in the coverage section, Ufone has divided its coverage in the four heads
namely as:
• North.
• South.
• Central 1.
• Central 2.

TARGET MARKET STRATEGY

As the market is rich in mobile penetration as turn out to be best in mobile

telecommunication sector. Currently is hot cake in Pakistan investment sector and
growing very fastly and Ufone is capturing market efficiently and with good service
quality and brand loyalty. Ufone is expanding its network to expand its coverage area and
to increase its market share. Ufone is targeting its focus segment “student” as they have
launched Rs.250 scratch card and latest promotion “U- top up”. Students segment is the
largest and most attractive segment and everyone in the market is trying to have the better
piece of the cake. Promotions such as “SMS Bundle Offer” and “U-Circle” are specially
targeting students.
Ufone’s advertisements are also very brightly colored and youngsters are used to
give a young look to its brand and targeting youngsters.

SALES STRATEGY:

19
 Ufone is utilizing following distribution channels for its services. The key-
differentiating factor is developing better distribution channels to Ufone market like
Customer Service Centers, which have a logo “U first”. Distribution channels are:
• Branch Office.
• Sales force.
• Countrywide Franchises.
• Through Open Market.
• Subscription through Website.

ADVERTISING:

The primary objectives of advertising are:

• To create awareness and interest about Ufone services offer in the market place.
• Build up corporate and brand image as a top quality, solution provider at
competitive prices.
• To build brand preferences.
MEDIA VEHICLES:

Following media vehicles are utilized for advertising campaign:

• Print and Electronic Media:
• Launch supplements.
• Newspaper ads.
• Television prime time ads.

Outdoor Advertising:
• Billboards.
• Point of sales Displays.

SALES PROMOTION AND PUBLIC RELATIONS:

Sales promotion and public relations are becoming increasingly important tools to
achieve marketing objectives. But as more and more companies are utilizing these tools,

20
effective utilization of these tools depends upon finding ways to differentiating from
others.

21
22
 COMPETITOR ANALYSIS

The competitive environment for mobile telephony in Pakistan is tough and

Ufone’s is a major player of the market. Primary competition is of course between four
mobile operators for the share of the market. But there is other potential source of
competition, which should also be taken into consideration.

DIRECT COMPETITION:

Direct competition to Ufone service is with thee licensed mobile world in today’s
market. These are:
 Mobilink.
 Warid telecom.
 Telenor.
 Zong

INDIRECT COMPETITION:

The indirect competition is from:

 Fixed line services.
 Card payphone services.
 Prepaid calling cards.
Massive expansion in penetration and quality of fixed line, payphone and prepaid
calling cards can effect mobile business environment.
Economic Scenario of Pakistan makes this observation relevant because mobile services
are still comparatively much expensive and customer may prefer to use cheaper, more
readily available alternatives.

COMPETITIVE STRATEGY:
To cope up with the growing competition, Ufone has always been a head of its
competitors. In today’s world, the only way to success is to gain a competitive edge.
Ufone has always taken keen interest in serving better to its users. UN matchless call and
SMS rates have given an edge to Ufone against its competitors. We can consider Warid

23
telecom as the major competitor today, because of its rates. But Ufone outclass Warid
with better quality and coverage.

24
 SWOT ANALYSIS

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats of any

organization.

Strengths of Ufone:
 1st Pakistani Cellular service provider.
 State of the art equipment.
 User friendly tariffs.
 Online billing option
 Launching new affordable post paid packages.

Weaknesses of Ufone:
 Owned by Govt. sector.
 Less coverage in the rural areas.
 Highly formalized structure.
 Bureaucracy may cause hurdles in development.

Opportunities for Ufone:

 Saturated market with heterogeneous cellular needs of customers.
 Can practically prove that customer is king.
 Growing tend of mobile use.
 Opportunities in many rural areas of Pakistan.

Threats for Ufone:

 Mobilink.
 Warid telecom.
 Telenor.
 Any new company from foreign countries e.g. Orange and Vodafone.

25
26
 JOB AS INTERNEE

At Ufone, I have worked at Ufone office, located in Blue Area Razia Shareed Plaza
Islamabad. I have worked in Sales and Distribution department over there. Basically
sales and distribution department at Ufone, it deals with the following functions as:

• Franchise Operations
Ufone has its 364 franchises. It covers all the activities related with the franchise
operations. For this purpose the FMS (Franchise Management System) software is
used, it covers activities like stock lifting, payments.
• Retail Operations
It covers all the retail activities. For this purpose the CARES (Customer Activity
Recording System) software is used, it covers activities like PPC and UTOP UP
etc.
• Merchandizing
S & D perform there function of merchandizing. Merchandizing is how to display
your product
• Analysis
In analysis it covers the all of the comparison of the targets, sales etc.

Sales and Distribution Department performing the following some tasks as:

• Targeting
S & D gives the target to the franchise and sales team for the sales of the stock. It
is usually on the monthly basis.
• Feed Back
After targeting they determine the feed back of those targets.
• Promos
Also involves introducing the different promotions activity.
• Retention
Also involves in, try to retain ufone customers.

27
MY FIRST DAY AT UFONE
On the first day of my internship, I was first of all introduced to the department.
My Supervisor, Mr. Raja Haroon Akhtar (S & D Incharge) and Mr. Mian Bilal
Mehmood (S & D Executive) gave me an orientation of the whole Sales and
Distribution department.
ROUTINE
I used to go there at 9’o clock with my elder brother Mr. Mumtaz Bashir
(Assistant Manager) admin.
In the early days of my internship my work was to observe the environment of the
department, get the photo copies and provides the help to my supervisors in there
work. First job which is assigned by the my supervisor to make the filing of the
franchise agreements and providing help in clearance of the cross territory violation
Sims.
The maximum time I spent on marinating the data of the Audit Report of Market
Visit .This data is first time ever maintained in that department and fortunately it was
me who was given the responsibility to maintain it.
I also maintain the other kind of data like allocation of demo line no to the
franchise and adjustment of furniture requirements sheet(furniture which provided by
the S & D to the franchises).and adjusted retailers ID sheets which is comes under the
franchise boundaries..
To be appointed as an internee in organization like Ufone was a great honor for
me. To work with Sr Managers and Executives like Mr. Aamir Mumtaz (Sr.
Manager), Mr. Hammid Moeen Niazi(Policy and Planning)Mr. Khwaja
Zulqarnain(National Manager Franchise Operation) and my supervisors.
This experience will help me a great deal in my future to overcome Marketing and
Management challenges which is the task of marketing manager.

28
29
HOW THE INTERNSHIP WAS RELATED TO THE MBA STUDIES?

I observed the different aspects of my MBA’S courses at Ufone During the whole period
of internship, I observed many concepts in the Ufone, but main difference I noted is that
the concepts and theories are not hundred percent applicable in some situations you draw,
extract and then use the results to solve or deal with that problems.

Observed concepts Courses Studied

• Advertising Promotion & Advertising

• Recruitment and selection Human Resource Management
• Environment Organizational behavior

I conclude from my internship that internship is the best way of getting an early exposure
of the market environment.

30
31
 RECOMMENDATIONS

• To expand network in most cities and villages of Pakistan.

• Reduce tariffs on the On-net out going calls as done the competitors.
• Using some films and TV stars as brand ambassadors can be a good choice.
• Do marketing collaterals in other major cities of the Pakistan as in Islamabad.

32
33
 CONCLUSION

I would like to conclude that internship has provided me an opportunity to practice

various principles, theories and procedures learnt during the studies in the real life
scenarios. It has also provided me an understanding of how various business
organizations operate, how the individuals are assigned various tasks, how their
performance is monitored and evaluated and that how the departments within an
organization team up and coordinate with each other to achieve the overall goals of their
organizations. In short, internship provided me the understanding of work at Ufone It was
a great experience.

34