FINAL U - FONE PROJECT (Submited) TO FAROOKI 29.07.2009

Marketing Project
TABLE OF CONTENTS
1. GENERAL FIRM DESCRIPTION ……………………………………4
1.1 Brief History of U-fone in Pakistan…………………………………….5

1.2 Activity of the Business. …………………………………………….…5
1.3 Starting date of operation ……………………………………………....6
1.4 General structure of the firm…………………………………………....6
1.5 Strategy at Business Life Cycle .......................................................…...9
1.6 Vision and mission Statement……………………….. ………………...10
1.7 Key products and service of The Firm …………………………………10
2. MARKETING PLAN…………………………………………………..14
2.1 Situation analysis……………………………………………………….15

2.2 Four P`s and C`s………………………………………………………..15
2.3 The market –customer end user for the product categories targeted.......18
2.4 External environment …………………………………………………..21
2.5 External environment near environment………………………………. 21
2.6 Critical success factors ………………………………………………....26
2.7 Situational analysis internal capabilities………………………………..27
2.8 Problems and opportunities statement………………………………….30
2.9 Marketing objectives and higher level marketing strategies …………..32
2.10 Marketing mix strategies……………………………………………...32
2.11 Proposed marketing mix strategies……………………………………35
2.12 Implementation plan……………………………………………….….36
2.13 Evaluation and control processes………………………………….......36
3. SERVICE PLAN………………………………………………...............37
3.1 Who should be involved in communications planning………………....38

3.2 Overview of classic communication plan………………………………38
3.3 Situation analysis: external or public environment……………………..39
3.4 Target audience(s)………………………………………………………40
3.5 key messages…………………………………………………………....41
3.6 Strategies……………………………………………………………..…41
3.7 Tactics…………………………………………………………………..43
3.8 Timing…………………………………………………………………..43
3.9 Spokes people…………………………………………………………...43
University of South Asia 1

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4. MANAGEMENT PLAN……………………………………………….....44
4.1 Planning……………………………………………………………........45
4.2 Organizing………………………………………………………………45
4.3 Staffing………………………………………………………………….45
4.4 Leading………………………………………………………………….45
4.5 Controlling…………………………………………...............................46
4.6 Hierarchy of the company………………………………………………46
5. HRM PLAN………………………………………………………………..47
5.1 Job analysis………………………………………………………….…..48

5.2 Dress code……………………………………………………………….51
5.3 Identification badge……………………………………………………...52
5.4 Job rotation…………………………………………………………...….54
5.5 Compensation management………………………………………….….55
5.6 Probation period……………………………………………………...….59
5.7 Performance criteria……………………………………………………..60
5.8 Increments………………………………………………………….........61
5.9 Promotions……………………………………………………………….62
5.10 Employee’s welfare policy……………………………………………..63
5.11 Transportation……………………………………………………….….65
5.12 Credit advance policy……………………………………………….….66
5.13 Rent and residence………………………………………………….......67
5.14 Vacation………………………………………………………………...68
5.15 Health and safety program…………………………………………...…69
5.16 Insurance policy ………………………………………………………..71
6. FINANCIAL PLAN……………………………………………………….81
6.1 Annual Average Sales, Income & Expense……………………..............82

6.2 Annual Average Sales & Income Statement… …....................................83
6.3 Balance Sheet…………………………………………………………....84
6.4 Balance Sheet - percentage-based……………………………………….85
6.5 Financial Ratios:………………………………………………………....86
6.6 Return on sales…………………………………………………………...88
6.7 Cash Turnover…………………………………………………………....88
6.8 Inventory turnover……………………………………………………......89

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7. ANALYSIS……………………………………………………………..91
7.1 Pest analysis………………………………………………………...........91

7.2 Internal factor evaluation matrix (Ife)…………………………………....95
7.3 External factor evaluation matrixes (efe)………………………………...96
7.4 Ethical problems the firm is facing…………………………………........97
7.5 External environments………………………………………...................97
7.6 key competitors of the company………………………………………....98
7.7 Distribution channels and buyers…………………………………….…..99
7.8 End user customers…………………………………………………...….100
7.9 Supply…………………………………………………………………....100
7.10 Critical success factors…………………………………………….........100
7.11 Problems of company regarding customer……………………...............101
8. ADVERTISING AND SALE PROMOTION…………………………102

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GENERAL FIRM’S
DESCRIPTION

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1. GENERAL FIRM’S DESCRIPTION
1.1 HISTORY OF U FONE IN PAKISTAN:
When U-fone started its operation in Pakistan, at that time three companies were already
running in the market. U-fone is a GSM provider company and at that time two companies
Paktel and Instaphone were operating with their analog technology, also called AIMS and the
one and only GSM Provider Company was MobilinkGSM, which was operating digital
technology. Although u-fone was going to introduce digital technology but the existing
companies were well established in Pakistan and it was a great challenge for the company.
Accepting the challenge of other three companies, u-fone launched to compete them and
survive in the market because it was the second digital technology company after
MobilinkGSM and also had the big shareholders in the market At this time in Pakistan there
are many different companies, which are providing the facility of the cell phones and one of
those companies is U-fone.
1.2 ACTIVITY OF THE BUSINESS:

U-fone is a GSM provider company and its main services or packages are as follows:
Prepay connections
Post pay connections
U fone ABN-Amro credit cards
U-Circle
U Mail
U TOP-UP

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1.3 STARTING DATE OF OPERATIONS:

U-fone launched in Pakistan and started its operation from the capital city “Islamabad” on
29th January 2001, a subsidiary of Pakistan Telecommunication Corporation limited (PTCL)
is the only Pakistani-owned cellular service operator in Pakistan.
1.4 GENERAL STRUCTURE OF THE FIRM:

There is a proper and formalized system of having departments in the Ufone due to which all
the activities are performed in a very good and efficient manner under the observation of the
CEO and the heads of all the departments that are working for Ufone. The ufone follows the
American school of thought. There is centralized approach in Ufone where all the big
strategies are made at the upper level and lower level management just implement those
strategies. According to our observations and findings the operations (including formal and
informal) of the firm are divided into the following categories:
Sales & Marketing Department
Finance Department
Customer Service department
IT Department
Human Resource Department
1.4.1 Sales and Marketing Department:

The Sales and marketing department performs the following functions:
Branding of the Product.

Media Communications.

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Promotions
Retail /Distribution of UFONE

International Roaming.
Franchise Management
Direct Sales
Indirect Sales
Connect Service
Provide quality service.
1.4.2 Finance Department:

They finance department performs the following operations:
Processing of all Connections.

Vetting & Processing of Sales
Facilitation of Sales through daily support.
Vetting & Verification of potential Customers.
Control Inventory.
Improve cash flow through prompt bill collection.
Blocking.
Enhance Credit Limits
Collections
Nationwide market search for available renowned vendors.
Comparison of product quality and standard being provided by different vendors.
Matching the available products with the required specifications & delivery time
Cross examining the quoted prices through the local market.
Negotiating the best deal.
1.4.3 Customer service department:

The customer service department is responsible for:

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1.4.3.1 Operation Performance:

Monitoring Process Performance.
Training.
Incentive Program.
Quality Management
1.4.3.2 Call Centre:
24 hrs self-serving Interactive Voice response.
24 hrs Product/ Account information.
Welcome Calls to New Customer
1.4.3.3 Support Centre:
Centralized back office for CS.

Responds to countrywide correspondence.
Report generation for statistical analysis.
1.4.3.4 Service Centre:
Customer query handling/ resolving walk in problem.

Personalized service to high profile & Corporate customers.
1.4.4 Information Technology Department:
Information technology department of ufone is although a small department of ufone but its
working is very important and it performs the following functions:
Networking.
Operating Systems.
Software Development.
Resource Applications.
Network Security.

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Billing
1.4.5 Human Resource Department:
These are the functions performed by the HR Department:
Job analysis
Recruitment.
Policy & procedures development.
Employees Data Management
Employee Benefit & Compensation.
Training & Development
Career Planning
Employee Relations/ Communication.
Retention of Employees.
Employee motivation
1.5 STAGE AT BUSINESS LIFE CYCLE:

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Ufone is moving towards growth position after the recovery period in 200 when the Ufone
faced some problems. Now the Management is fully concentrating to increase its productivity
and to achieve the company’s objectives.
1.6 VISION AND MISSION STATEMENT:
Vision Statement:
To provide excellence to our stake holders so that there is no question about their loyalty to
the company.
MISSION:
To be a superior communications service company in Pakistan which provides the best value
to its customers, employees, business partners and share holders.
1.7 KEY PRODUCTS AND SERVICES OF THE FIRM:

1) Prepaid
2) Post-paid
3) Scratch Cards

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1.7.1 PREPAID:
Introduction:
Ufone Prepay is a Community where sharing is easier, more affordable than ever before; the
fastest growing prepaid community, where you benefit from the best calling and SMS rates.
Ufone prepay provides the following facilities to its users:
Voice Mail: Ufone Voice mail lets you receive and store messages when you are unable to
attend your calls; if your phone is switched off, not responding, busy or out of coverage.
SMS: With Ufone’s Short Messaging Service send unlimited messages to your friends, loved
ones and colleagues
GPRS: With Ufone GPRS you can check your e-mails, chat with friends or browse the
internet from your mobile phone
MMS: With Ufone MMS you can send photographs or video clips to an email or another
Ufone.
International SMS: Send unlimited messages to 449 operators in over 169 countries at
standard SMS rates.
Downloads: Ufone provides a wide range of downloads for your mobile in form of picture
messages, color wallpapers, ring tones, logos etc
For activation of GPRS and MMS service Rs.150 will be deducted only for first time as an
activation charges from the available balance of the prepaid connection.

Marketing Project
1.7.2 POST PAID:

Introduction:
Ufone, firmly believe that it’s all about u! Keeping in mind the customers needs. We are
pleased to introduce Ufone’s new economy based smart postpaid packages. With Ufone’s new
postpaid package, you can be assured of:
 Lowest Line Rent options
 More Free Outgoing Airtime Minutes
 Free SMS
 The most affordable recurring outgoing and SMS rates
The free of cost Value added services available for postpaid users are:
Voice Mail: Ufone Voice mail lets you receive and store messages when you are unable to
attend your calls; if your phone is switched off, not responding, busy or out of coverage.
Call Management: With Ufone Postpaid you can avail special services like call waiting, call
conferencing and call forwarding
SMS: With Ufone’s Short Messaging Service send unlimited messages to your friends, loved
ones and colleagues
GPRS: With Ufone GPRS you can check your e-mails, chat with friends or browse the
internet from your mobile phone
MMS: With Ufone MMS you can send photographs or video clips to an email or another
Ufone.

Marketing Project
International SMS: Send unlimited messages to 449 operators in over 169 countries at
standard SMS rates.
Downloads: Ufone provides a wide range of downloads for your mobile in form of picture
messages, color wallpapers, ring tones, logos etc.
Ufone MCN service: Ufone provides another exciting service for its postpaid customer that if
there is outage of service, as your mobile is out of range, switched off or not receiving the
signals, you will get the information of incoming call numbers through an SMS when your
mobile gets the signals.
Markets:
Ufone is performing its operations in the following two markets:
Local
Foreign (International Roaming)
Types of customers
 Business class
 Individuals
 Office employees
 From High To Poor Class People
 Higher Class Includes
 Businessmen
 Money Market Dealers
 Members & Broker Of All Stock Exchange

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 Industrialist
 Lower Class Includes
MARKETING PLAN

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2. MARKETING PLAN:
2.1 SITUATION ANALYSIS:
BUSINESS DEFINITION AND SCOPE:
Mission statement:
to its customers, employees, business partners and share holders?
2.2 Four P’s & C’s:

Ufone is also following the 4P’s and 4C’s for developing the best relationships with their
customers.
Product / Customer’s Need:

The Company provides its products according to customer’s needs and wants. Their products
are standardize and pr according to the international standards. They can manufacture their
products as their customer’s required specifications as per standards.
Price / Customer’s Affordability:

Company provides its products to customers at a reasonable price which is affordable for
them. Ufone provides superior quality products so the customers feel relax while paying

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because they know the products which they are purchasing shall provide maximum benefits
for them.
Placement / Customer’s Convenience:

Ufone has many outlets for their customers. But they provide their products to customers at
their doorstep required by them, using their own transport or any other transportation
company. Ufone feels proud to provide their products to their customers timely.
Promotion / Communication with Customers:

Ufone is well known company in telecommunication industry so they need heavy
advertisement through mass media. For promotion of their company and their products they
are going to launch their new website in future and they are using print media for advertising.
Product definition:
All of the products of UFONE are connections and scratch cards that are used by:
No Used by Purpose
.
1. Business Class For the purpose of meeting their high volume of

daily calls.
2. Individuals For the purpose of meeting limited number of

calls..
3. Stock brokers For the purpose of watching rates through

internet by using GPRS.
4. All other segments For meeting their daily requirements.
Product categories:
Ufone basically deals with three types of products.
1) Post paid
2) Prepaid

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3) Scratch Cards
Product categories offered by Ufone and its products competing in those categories:
Postpaid:
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
Prepaid:
Ufone Prepay Tariff Within Ufone Community To Other To PTCL

(Rs.) Networks*
Outgoing Call rates / 2.50 2.50 2.50
Peak
(7am -10pm) Per
Minute
Outgoing Call rates / 1.50 2.50 2.50

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Off Peak
(10pm -7am) Per
Minute
SMS 50 Paisas 1/- 1/-
Per Outgoing
Message
International SMS Rs 1.5/-

Ring tones Rs 1.5/-
MMS Per Incoming / Outgoing Message Rs 5/-
GPRS Per Megabyte Rs 15/-
Nationwide Roaming Free
Voicemail Per Minute Rs 1/-
Scratch cards:
Denominations Validity
Rs. 100 6 months
Rs. 250 6 months
Rs. 500 1 year
Rs. 1000 1 year
2.3 THE MARKET – CUSTOMERS (END USERS) – FOR THE PRODUCT

CATEGORIES TARGETED BY UFONE:
There are local as well as global markets, which are targeted by the UFONE for our all
product categories:
For All Products of Ufone:
 Local Level:
 Business class
 Individuals
 Higher Class& Low Class Includes
 Businessmen

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 Industrialists
Global Market:
Zones Destinations
zone 1 CANADA/USA (Fixed Line)
CANADA/USA (Mobile)
CHINA (Fixed Line)
CHINA (Mobile)
FRANCE (Fixed Line)
GERMANY (Fixed Line)
HONG KONG (Mobile)
ITALY (Fixed Line)
NETHERLANDS (Fixed Line)
NORWAY (Fixed Line)
SPAIN (Fixed Line)
UK (Fixed Line)

zone 2 AUSTRALIA (Fixed Line)
BELGIUM (Fixed Line)

DENMARK (Fixed Line)
GREECE (Fixed Line)
HONG KONG (Fixed Line)
IRELAND (Fixed Line)
JAPAN (Fixed Line)
KOREA SOUTH (Fixed
Line)
MALAYSIA (Fixed Line)

zone 3 BANGLADESH (Fixed

Line)
INDIA (Fixed Line)
INDONESIA (Fixed
Line)
KUWAIT (Fixed Line)
QATAR (Fixed Line)

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RUSSIA (Fixed Line)

SRILANKA (Fixed Line)

THAILAND (Fixed Line)
UAE (Fixed Line)
UAE (Mobile)
SAUDI ARABIA (Fixed
Line)
TURKEY (Fixed Line)

Zone 4 AFGHANISTAN (Fixed

Line)
BAHRAIN (Fixed Line)
BAHRAIN (Mobile)
BANGLADESH
(Mobile)
INDIA (Mobile)
IRAN (Fixed Line)
KOREA SOUTH
(Mobile)
KUWAIT (Mobile)
MALAYSIA (Mobile)
OMAN (Mobile)
SRILANKA (Mobile)
THAILAND (Mobile)

Zone 5 AUSTRALIA (Mobile)
EGYPT (Fixed Line)

FRANCE (Mobile)
IRAN (Mobile)

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2.4 EXTERNAL ENVIRONMENT:
Political factors:
When we talk about the UFONE we see that the political factors affect the organization but in
critical way. UFONE is caring their business both national and international level political
leaders. The policies formed by Government may effect the functions of the company.
Economical factors:
Due to the entry of new companies like Warid, Telenor etc into the market, it has become
possible for different customers to get connections at low prices.
Technological factors:
If new companies offer different and latest technology at lower prices then it will be difficult
for the company to maintain its position in the market.
2.5 EXTERNAL ENVIRONMENT – NEAR ENVIRONMENT:
Market Review:
Markets:
UFONE has two targets markets at:
Local Level, and
Global Level.
The Local level markets include the markets in the major cities of the Pakistan, including:

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Local Level:
NORTH
Abbotabad Akora Khattak Attock Azakhel
Bagh Bahtar Balakot Balkasar
Bannu Batgram Batkhela Battal
Bazi Khel Bhurban Bunair Chakri
Chakwal Charsadda Chattar Plane Dandot
Dargai Dina Dityalwala Dudhial (Chakwal)
Fathejang Garhi Habibullah German Kalay Gujar Khan
Hangu Haripur Hassanabdal Hattar
Havalian Islamabad Jehlum Jhagra
Jhangira Kahuta Kallar Kahar Karak
Kherimorat Kohat Kund Khairabad Mallangan
Mangla Mansehra Mardan Metra
Mingora & Saidu Mirpur (AJK) Murree Muzafarabad
Sharif
Nowshera Pabbi Peshawar Rawalakot
Sarai Alamgir Shabqadar Shinkiyari Sihala
Sohawa Swabi Tallagang Tarnol
Taxila Thandiani TOPA Usterzai
SAWAN(AJK)
SOUTH
Badin Chamman Dadabhoy Dadu
Daharki Dewan City Dumbah Goth Ghotki
Gwadar Hub Hyderabad Jacobabad
Jamshoro Kamber Karachi Kashmore
Kathor Khairpur Khandh Kot Khanpur
Khuzdar Kotri Larkana Liaquatpur
Loralai Matiari Mirpur Khas Mirpur Mathelo
Mithi Moro Naushero Feroz Nawabshah
Nooriabad Pano Aqil Pishin Qasimabad
Qazi Ahmad Quetta Rahim Yar Khan Rohri
Sadiqabad Saeedabad Sajwal Sanghar

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CENTRAL-1
Farooqabad Kot Momin Pindi Bhattian Salem
Sukheki Bado Malhi Bhai Pheru Bhera
Chawinda Chunian Daska Dinga
Faizabad Ferozewatwan Ferozwala Gakhar Mandi
Gujranwala Gujrat Hafizabad Jalalpur Jattan
Kamoki Kasur Kharian Kot Abdl malik
Kot Radha Kishan Lahore Lala Musa Laliani
Mandi Bahauddin Manga Mandi Maraka Mora Gandha
Muridkay Narang mandi Norowal Pattoki
Phalia Qila Deedar Singh Rahwali Raiwind
Roshan manika Sadhoki Sambrial Shahdra
Shakargarh Sharaqpur Sheikhupura Sialkot
Warburton Wazirabad Zafarwal
CENTRAL-2
Abdul Hakim Adda Laar Ahmedpur East Ahmedpur Sial
Alipur Arifwala Bahawalnagar Bahawalpur
Baseera Bhakkar Bhalwal Bhalwal Sgd Road
Bhawana Burewala Chak Jhumra Chasma
Chayalees Adda Chichawatni Chiniot Chistian Mandi
Chowk Maitla Dajal Dera Nawab DG Khan
DI Khan Dipalpur Faisalabad Fazilpur
Ghazi Ghaat Gojra Gojra Pansera Road Harunabad
Hasilpur Haveli Hujra Shah Muqeem Hyderabad Mankera
Iqbalabad Jahanian Jampur Jaranwala
Jhang Joharabad Kabeerwala Kacha Khu
Kalabagh Kamalia Karor Pakka Kassowal
Khan Garh Khanewal Khanpur Khiddarwala
Khushab Kot Addu Kot Chutta Kotla Mughlan
Leiah Liaqatpur Lodhran Luddan
Machiwal Mailsi Mamun Kanjan Mian Chunnu
Mianwali Muhammadpur Multan Muzaffargarh
Nankana Sahib Okara Pakpattan Pir Mahal
The Global level markets include the markets in the following Areas:
Only those areas where international roaming facility is available.

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 Our Customers:
 Business class
 Individuals
 From High To Poor Class People
 Higher Class Includes
 Businessmen
 Industrialist
 Lower Class Includes
 All other segments of the market
Customers Want:
Connectivity
Quality of products
Low Price
Innovative features
Wide Coverage
User Benefits of Product:
Security
Ease of use
Ease of balance check
Services available for Customers:

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Customer Service department
24/7 Help line
User manual (selected product)
Online as well offline help lines (www.ufonegsm.com.pk)
Distribution channels and buyers (intermediary customers):
There are different channels which are used by the U- fone from the franchises to buyers,
including:
Distributors
Retailers
Commission agents
Bulk quantity customers
Franchises
Customers are the most valuable asset of the organization. Success or failure of any Ufone
depends upon the customers.
Three things that effect the organization:
Number of customers
Frequency of purchase
volume of purchase
Ufone has a lot of customer that can be categorized into the following categories:
Regular customers
Brand loyal customers

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Price conscious customers
Quality conscious customers
Availability conscious customers
Promotions conscious customers
Key Customer satisfaction Elements:
Customer satisfaction by the UFONE is ensured by the following views:

The Ufone fulfils the commitment with the customers.
The Ufone delivers the product on time.
Ufone doesn’t want to loss the customers.
The Ufone provides the defects free products to their customers.
The Ufone provides the product to their customer with the respective number that
ensures a good recording system in the Ufone.
The Ufone cares for packaging, cartoons, and for item numbers.
The Ufone doesn’t accept the order that they cannot fulfill within time.
The Ufone seeks for qualified supplier
2.6 CRITICAL SUCCESS FACTORS:
There are different critical successes factors of the UFONE and also for its major competitors,
which are also include in the CPM.
Product line
Consumer’s convenience
Customer’s satisfaction
User benefits
Competition
Rebate rate
Internet sale
Technology used for operation
Market share

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Global expansion
Local expansion
Piece attractiveness
2.7 SITUATION ANALYSIS – INTERNAL CAPABILITIES:
Non-marketing capabilities:
These are the internal capabilities of the UFONE other than the marketing capabilities, and
these internal capabilities include the capabilities regarding the following:
Financial position
Management & leadership
HRM
R&D
Operations—production
Inter functional coordination
Latest Technology
Availability of different places
Management capabilities:
In the planning phase the CEO of UFONE has well defined his vision, mission, and goals. The
vision and mission statement is given below:
Vision statement:
To provide excellence to our stake holders so that there is no question about their loyalty
to the company
Mission Statement:
to its customers, employees, business partners and share holders.

Marketing Project
As it is cleared by the mission statement that the primary goal of UFONE is to maximize its
sale. And some of the other goals are:
Customer satisfaction in the form of maximum quality.
Use capital intensive machinery.
To produce more employment opportunities for the workers.
To organize or implement his planning, the CEO has hired specialized personals for
managing HR, MIS, R&D, TQM, Sales and Marketing, and Finance. There for the
organization is no fully utilizing its potential.
Leadership capabilities:
In the Ufone there is formal quality council but the top management has set some certain
parameters that fully ensure the role of top manager as a leader who is leading all the
employees and the workers of the organization.
Let’s discuss some elements of leadership in UFONE:
The structure of the UFONE is decentralized.
There is participatory type of management in the UFONE.
The organization is following the concept of management by walking around.
There are well-defined quality policy statement in the form of mission and vision of
the organization.
Top manager as being the leader is well knowledgeable with all type of organizational
activities and with external environment of the industry of the cutlery.
There is effective communication system in the organization.
Human Resource Management (HRM) capabilities:

The activities regarding the human resource management in the UFONE are performed
formally.

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Research and Development (R&D) capabilities:

In the R&D department of UFONE there is a separate department that performs the functions
of research and development.
Marketing capabilities – Management:
Marketing Intelligence:
As the main market of the UFONE is the local market, where the CEO often conducts the
visits and finds information about:
Customer preferences
Customer response
Technological changes
Cultural changes
Distributors’ and retailers’ preferences
Competitor’s strategies
Changes in the market, and etc.
Marketing planning:
The executives of UFONE are doing very well marketing planning. Because they have
planned anything about the market. And their planning is not only limited to the expansion of
their market intermediaries, so that their sales revenue can be increased.
2.8 PROBLEMS AND OPPORTUNITIES STATEMENT:
The business unit’s capabilities in relation to critical success factors:
CSF Our capabilities

Product line Offer three types of products

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Consumer’s convenience Offer a number of user benefits

Customer’s satisfaction Offer a number of services available for customers
Competition Strong competitive position
Rebate rate Receive more than an average
Technology used for production Capital intensive technology
Market share Lower than all other rivals
Opportunities for the business unit to exploit with existing capabilities:

Following are the opportunities for the business unit to exploit with existing capabilities:
Relations with politicians can increase sale of cutlery by Army.
UFONE can give gifts to the politicians as a part of their promotion campaign.
Economy of scale, production in bulk quantity.
Focus on product that has high user benefits
Provide incentives to competitors’ commission agents and whole sellers to increase its
own sale.
Provide brand awareness to the customers through some promotional camp

Opportunities for the business unit to exploit with improved capabilities:
Following are the Opportunities for the business unit to exploit with improved capabilities:
Approach to the products, which other competitions have stopped to deliver due to the
less rebates.
Keep them updated about the cultural values of other governments through their
distributors and whole sellers.
Promote the items through cultural contest.
Outsourcing from china.

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Install latest technologies that are in use in providing services process like CAD
technology, and automation.
Establish a web based e-commerce portal in order to reduce the cost of whole sellers
and distributors.
Downsizing through automation.
Find markets, which are not in the reach of the competitors.
Work in cluster.
Create demand for their product by reaching into more global and local markets.
Offer customization of products through the Internet websites.
Threats, which must be addressed:
Govt. can bane any product.
End of the rebate on any product.
Any product bane due to the cultural limitation.
China in local as well as in global market.
Local distributors are not specialized in their tasks.
Customer preferences are continuously changing.
2.9 MARKETING OBJECTIVES AND HIGHER LEVEL MARKETING

STRATEGIES:
MARKETING OBJECTIVES:
2007 (July 1 2006, to June 30, 2007)
Revenue Objectives Rs 127 Million
Net profit margin 40 %

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PRODUCT-MARKET STRATEGIES:
Strategies for year 2007
Existing products in existing markets Expansion in market intermediaries.

(Market penetration)
Existing products in new markets Enter into the markets of those cities to
(Market development) which competitors have less access,
through the links of existing market
intermediaries.
2.10 MARKETING MIX STRATEGIES:
MARKETING MIX:
Product Features:
The products of UFONE have a number of features that a competitive company may have not
in their products. It gets competitive edge on quality, because now consumer is rational and he
has moved from price conscious products to quality-oriented products. So, some silent
features of the products of UFONE are:
High speed connectivity
Long life
Low prices
Innovative features
Features of SMS and MMS
Easy to use
Brands:
 Brands of UFONE

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 Postpaid
 Prepaid
 Scratch Cards
Prices:
POSTPAID
Postpay Postpay Postpay Postpay

ZLR Ease Value Extra
Monlthy Line Rent (Rs.) 199 399 999
Ufone to Ufone 0.90 0.60 0.50 0.40
Ufone to Other Mobile 1.15 1.10 1.10 0.90
Operators
(Rs.)
SMS Charges
Ufone to Ufone (Rs.) 0.5 0.5 0.5 0.5
Ufone to Other Mobile 1 1 1 1
Operators (Rs.)
Free
Free SMS 0 25 50 100
Security Deposit
PREPAID
Postpay ZLR Postpay Postpay Postpay

Ease Value Extra
Monthly Line Rent (Rs.) 0 199 399 999
Ufone to Ufone 0.90 0.60 0.50 0.40
Ufone to Other Mobile Operators 1.15 1.10 1.10 0.90
(Rs.)
SMS Charges

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Ufone to Ufone (Rs.) 0.5 0.5 0.5 0.5

Ufone to Other Mobile Operators 1 1 1 1
(Rs.)
Free
Free SMS 0 25 50 100
Security Deposit
International Roaming (Rs.) 15,000 15,000 15,000 15,000
U Circle
With Ufone Post pay you can stay in touch with your tight circle of friends and family
because at reduced rates Ufone makes it very affordable and economical..
Friends & Family - FnF
Postpai Postpai Postpai Postpai

d ZLR d Ease d Value d Extra
Members (number allowed)
Ufone 4 4 8 10
Friends &
Family
members
PTCL 1 1 2 5
Friends &
Family
members
Total 5 5 10 15
Friends &
Family
members
Ufone to 0.4 0.35 0.30 0.25

Ufone
Ufone to 0.5 0.55 0.50 0.45

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PTCL
Activatio 50 50 50 50
n Fee
(One
Time
Charge
in Rs.)
FnF List 20 20 20 20
change
Charges
(Per
Update in
Rs.)
2.11 Proposed marketing mix strategies:
These strategies include the following strategies:

Product Strategy
Pricing Strategy
Distribution Strategy
Promotional Strategy
Product Strategy:
Products will be the result of continuous efforts of R&D and products will be coupled with
various benefits and services to the end users.
Pricing Strategy:
The prices of the products will be the substitute of the quality of the products and this will
really generate superior values for the customers.
Distribution Strategy:
The whole focus in distribution strategy of the organization will be on maximizing the
relations with the intermediaries and will be on entering into the markets to which the other
competitors have less access.

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Promotional Strategy:
The products of the UFONE will be promoted directly by giving incentives to the whole
sellers, distributor (Market Intermediaries), by billboards, and also by the print ads.
2.12 IMPLEMENTATION PLAN:
All the marketing strategies specially the marketing mix strategies will be coupled with the
organizational strategies and will be communicated to all the members of the organization in a
way that all the members get motivation and carry all the strategies very seriously because
they should have learned that the organizational performance is totally attached with the
achievement of these strategies.
2.13 EVALUATION AND CONTROL PROCESSESS:
The control process will continue from the start to the end stage of the implementation plan so
that there could not be any problem or error at the end of implementation. And during the
controlling stage the top management follows the concept of management by walking around
(MBWA). So that the interest of the employees can be created in different type of the
activities.
And ultimately getting the desired performance from whole organization, all the employees
will be given incentives due to their glorious efforts.

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SERVICE PLAN

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3. SERVICE PLAN:
3.1 WHO SHOULD BE INVOLVED IN COMMUNICATIONS:

PLANNING:
Several people! In fact, forming a communications planning committee is a critical first step
in developing your plan. A good plan requires broad participation from your organization or
coalition of groups working on the same issue. Try to engage staff, board and volunteers in
the process. If possible, bring an experienced communications strategist in to facilitate
meetings and keep your planning work moving.
3.2 OVERVIEW OF CLASSIC COMMUNICATION PLAN:

All communications work is more art than a science. However, a typical plan outline will
often look something like this:
1. Situation Analysis: Organizational Background
2. Situation Analysis: External or Public Environment
3. Campaign/Organizational Goal and Key Objectives
4. Communication Objectives
5. Target Audiences
6. Key Messages
7. Strategies
8. Tactics
9. Timing
10. Timelines
11. Spokespeople

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In the following paragraphs, we address these typical sections of a strategic communications

plan.
3.3 SITUATION ANALYSIS: EXTERNAL OR PUBLIC ENVIRONMENT

It is important to be aware of the external threats and opportunities to your
organization, to those who may be opposed to your messages, and to have a good
sense of the communications environment in which you will be delivering your
message. Consider these questions:
What is the current local/national perception of your organization, program and/or
issues?
Are you widely seen as a “grassroots” organization?
As a well-funded international advocacy group?
As a statesmanlike or “think-tank” organization?
As radical, or mainstream?
How do you want to be positioned?
Has there been a history of media stories on you or your work?
Letters to the editor?
Talk radio interviews?
Feature stories?
In other words, how exposed is your group?
How has it been positioned within the media to date?
Have any special studies or surveys been carried out affecting your issue area?
Is more research required to understand attitudes and public opinion towards your
issue?
In other words, is it on the public’s “radar screen” or would most
people consider it to be “new”?
Has there been any significant lobbying of your office, in person or through
correspondence?

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What do you want your target audience to do, exactly? What is your “call to
action”?
Do you want your audience to write a letter to a decision-maker?
Do you want them to change a personal behavior?
How will you measure success? What will your benchmarks be?
Is it that 100 people will call you by a certain date?
Is it that you will generate $5,000 in new donations?
Is it that your event will be sold-out?
Do you want to provide your audience with new information?
What do you want them to do with this information?
3.4 TARGET AUDIENCE(S):
Your ‘A’ List, Primary Audiences

Who do you ultimately want to influence?
Name “Business leaders” isn’t good enough.
How can you reach your target audiences?
Does the Minister have an Advisor?
Does the Advisor have Issue Researchers?
Who are they? Know their names. List them in order of priority to
Reaching your goal or key objectives.
Your ‘B’ List, Secondary Audiences

Who supports your work?
And, who is critical of your work?
They are saying and be prepared to respond.
How has each media represented your issue?.
Know who the oppositional reporters are by name. Know when their
Are recipients of your service an audience?
What message do they need?

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Are your organization’s staff, volunteers, donors and friends an audience?

What is the message you need to communicate to them?
3.5 KEY MESSAGES:

There are many ways of communicating about the same issue. It is important to know which
words will resonate with your audiences; which words or ideas the public will embrace. Some
research, such as informal focus group testing or direct mail questionnaires may be required to
fully understand your audiences’ motivations. The results of testing may be unexpected —
even counter-intuitive. Message testing is an important step to ensuring you develop a
successful communications campaign.
What is your “hook”?
What are the specific phrases and words that capture your message most clearly and simply?
Can you state your message in a bumper sticker? State your message in one single sentence.
Any longer, and the thought has not been adequately focused.
3.6 STRATEGIES:
Although it may be tempting, do not start developing your Communications Plan by

identifying strategies. Go through the planning process to first develop or identify goals,
objectives, clear messages and target audiences. You will ultimately develop much more
effective strategies in this way. Media relations are only one kind of strategy, and may not be
the most effective one for your particular issue. Your issue may be advanced more
Effectively, for example, through a single briefing with a key decision-maker, rather than
through a strategy which generates 1000 faxes to his or her office? The strategy you select
depends entirely on the situation, objectives, and a clear understanding of who constitutes
your target audience, and what will move them to act.
Consider the following questions when developing your strategies:
Is your strategy proactive or reactive?
Low profile or high profile?
Local jurisdiction or nation-wide?

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What are the major communications opportunities?

What communications strengths are available in your organization?
Clipping files, strong public speakers, and staff who are well connected in
the community, etc.?
What alliances does your organization have?
Does your approach warrant paid advertising through print, radio and/or TV
(Assuming you have the resources to do so!)?
Who are your opponents?
What do you anticipate their key messages will be in response to your
Release?
How will you respond?
What are the potential weak points in your argument or story?
How creative can you be?
Does your strategy warrant the development of a specific Media Strategy?
Which kind of media coverage will result in the greatest impact on
decision-makers?
Is the issue big enough, newsworthy enough to warrant a press
conference? An exclusive? With whom?
Should your story be delivered in a media briefing with specific reporters invited? An
editorial board meeting with one media outlet?
Can your story be made visual? Are there ways in which your story could be staged, presented
and/or supported by visual materials?
When should your release be timed? How does it fit with other current
events? What are current editorial priorities?
If a government official could be asked by the media to respond to your release, should you
inform that official? How much time will you give them? Remember that government has
communications staff and they may find it in their interest to undermine your message.

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3.7 TACTICS:
There are literally dozens of methods to reach an audience. In selecting and priorizing
your tactics, consider these questions:
How big is your budget?
What personnel resources are available to you?
How much time will they be required to spend on communications efforts?
Is this reasonable given their current work expectations?
In brief, how do you plan to deliver your key message(s) to your target audiences?
session, backed up by a briefing kit. Steps could include:
preparing a Question & Answer document;
· doing background research on the political environment around your issue;
knowing when major decisions about your issue or policies related to your issue will be
made.
3.8 TIMING:
Timing refers to the natural links onto which you can hook your communications. For
example, if the government will be making budget decisions that will impact your issue area,
be prepared to respond. Be proactive and contact media and assistants to the Minister before
the decision and announcements are made. Does your issue have natural links to stories
around specific holidays? Plan out your activities well in advance of the holiday you are
hooking your campaign on.
3.9 SPOKES PEOPLE:

Determine who within your group will project the most credible voice to your key audiences.
You may want to train one person to address the government and editorial boards, and another
to share your message with stakeholders.

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Management Plan

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4. MANAGEMENT PLAN:
In Ufone the management used managerial functions mostly according to the American
School of thought.
4.1 PLANNING:
Top management consists of Chairman, Managing Director and Executive Director is

involved in the decision making .The Managing Director have the authority to take decision.
Mostly operational and managing decisions are taken by Managing Director. Managers have
to follow and implement the decision immediately.
4.2 ORGANIZING:
Managers are individually responsible for their decision. The Management has a check on the
employees. The structure of the organization is mechanistic because decision flow from the
Top to Bottom. There is lack of common organizational culture.
4.3 STAFFING:
The organization wants to hire the experienced people from other companies either skilled or
technically educated. They want to hire high educated employees for their organization,
because promotion is based upon the experience and individual performance. Long term
performance appreciated. Job insecurity is always prevailing in the organization.
4.4 LEADING:
Mr. Zia-ul-Islam (Managing Director) is leading the organization and acting as decision
maker. He has adopted the directive style for leading because face to face confrontation is
common. Communication takes place from top to bottom.

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4.5 CONTROLLING:
Top management controls the organization. Workers are control by supervisors who are
responsible to report the progress. Company focuses to control the individual performance.
Company extensively uses the quality control circles to make high quality products.
4.6 HIERARCHY OF THE COMPANY:

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HRM PLAN

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5. HRM PLAN:
5.1 Job Analysis:
Recruitment Policy:
1-OBJECTIVES:
The policy is intended at identifying and choosing the right hand for the right job and
ensuring an effective and efficient method of recruitment and selection. It is also aimed at
seeking a diversified work force, devoid of any discrimination based on race, color, sex,
nationality, ancestry, religion or disability, in certain cases.
It is the Company’s policy to implement an appropriate; recruitment system based on

Careful determination of the required competency & selection methods with efficient
Means of communication with candidates.
It should be ensured that the policies and procedures regarding hiring comply with the
applicable rules and regulations established by the Government of Pakistan.
Candidates will be selected and the offers of employment will be extended on the basis
of recruitment tests, qualifications, experience, ability, interest, aptitude and
adaptability to the specific job requirements.
All employees involved in the recruitment process will follow and comply with the
necessary employment procedures related to applications, screening, interviews and
job offers.
The salary offered will be within the budget and policy guidelines approved by the
Director Human Resources & Administration, VP Finance/CFO and the President.

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2-POLICY GUIDELINES:
The Sources of recruitment for different job vacancies in “Human Resource Manual”
include:
2.1Current PMCL employees.
2.2 Internal Advertisement.
2.3 Databank.
2.4 Advertising
2.5 Employment Agencies and Consultants.
2.6 Walk in applications.
3-RECRUITMENT AND SELECTION PROCESS

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3.1 External Recruitment:

i. No candidate under the age of eighteen will be considered.
ii. To avoid conflict of interest, candidates will not be considered for a post if
their blood relations work in PTCL-UFONE.
iii. The Head of each department is responsible for understanding the hiring
process and its application. He / She are also responsible for complying with
the procedures established for hiring personnel.
iv. Human Resources jointly with the Department Heads will set the (salary
range) to be offered to the applicant. The HR department is responsible for
providing the Department Heads with the feedback on the status of all salary
offers.
v. Minimum qualifications must be a Bachelor degree or equivalent. A-Level
or equivalent may be considered for certain positions and will be subject to
the approval of the Director Human Resources & Administration.
vi. The Company reserves the right to test potential candidates. Candidates must
be able to successfully complete any job related selection tests given to them.
3.2 Internal Recruitment:

i. Internal candidates must be confirmed employees of UFONE who have
completed one year of service. However they must complete one year of
service in their existing designation / position before being considered as an
internal candidate.
ii. Selected candidates will join the new job/position after getting clearance
from their supervisor and will be on probation for a period of six months.
iii. Any change in designation will not necessarily mean a change in salary and
benefits package.
.

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5.2 DRESS CODE:
1- PURPOSE:
A) To provide all employees with the reasons for suitable attire, acceptability of
appearance and enforcement procedures.
B) For the benefit of the employee and all other employees in the working area. The
employees clothing, hairstyle and jewelry shall not be of the type, which may
interfere with the appropriate performance of his/her duties.
C) Employees whose duties involve Customer contact must maintain a suitable

appearance, as customers judge the Company not only by the quality of product
and services the Company provides, but also by the appearance of the people with
whom they deal.
D) Employees who deal with the general public must maintain a suitable appearance
as their dress and actions reflect upon Company image.
2- PROCEDURE:
1. All female employees shall observe the following dress code:
Shalwar Kameez
Dress Pants / Blouse or Shirt with Jacket or Waist Coat
Skirts / Blouse or Shirt with Jacket or Waist Coat (No minis / long slits)
Light makeup
Light jewelry
No Low Necks
2. All male employees shall follow the following dress code:
Dress shirt / pants / Tie with Jacket or Coat or Sweater
Dress shoes and socks
Well trimmed moustache, hair and beard / “shaved face”
Hair length should not go below the shirt collar.

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3. Head office employees may dress casually on Fridays only.

4. Employees who work on Saturdays, where they have customer contact will
wear Business casual. Business casual is defined as follows:
Dress shirt / pants
Dress shirt / pants /coat
Dress shirt / pants / sweater
Dress shoes and socks
No joggers
No jeans
Dress code for female employees will remain unchanged on Saturdays.
All Officers / Department Heads shall be responsible for the implementation of the
dress code for their employees.
Any employee not abiding by the Dress Code under this Policy will initially be
counseled by his /her immediate supervisor / office manager. Any repeated act will be
reported to the Human Resources Department in writing.
5.3 IDENTIFICATION BADGE:
1- PURPOSE:
In order to ensure that only authorized personnel enter, circulate and leave the work area,
an identification badge system will be utilized. Identification badges will be classified
into three categories:
(1) Permanent Employee,

(2) Visitors
(3) Non-permanent.

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2- PROCEDURE:
A. Permanent Employee’s Badge:

1. Upon appointment, the Human Resources Department will issue a permanent
employee badge.
2. Employees are required to wear the badge when entering or working within the
work premises.
3. When an employee badge is lost, damaged, or stolen, the employee must

immediately report this to the Human Resources Department so that
replacement or corrective measures may be taken.
4. When an employee leaves Ufone, the badge will be turned in before receiving
final check.
B. Temporary Badge:
1. A temporary badge will be issued to employees who have mislaid, lost or have
had their permanent badge stolen until a new badge is reissued. No employees
will be allowed to keep a temporary badge for more than one (1) week.
2. Temporary badges will also be issued to temporary workers, contractual,

contractors and vendors.
C. Visitor Badge:
Applicants, interviewees, government officials or any other people visiting work facilities may be
issued a visitor badge upon verification by an authorized person, from the concerned department.
D. Re-issuance of Badge:
In case an employee has lost his / her permanent or temporary employee badge, or it
has been stolen, a nominal fee will be charged for a new badge.

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5.4 JOB ROTATION:

1. PURPOSE:
To give employees an opportunity to grow and gain experience in the organization,
allotting them with more / different responsibilities and transferring them to various
duties.
2. OBJECTIVE:
Job transfers of individuals may be allowed under certain circumstances depending
upon the needs. Such transfers will be handled in coordination with the Director
Human Resources & Administration & other respective Department Heads.
No employee is allowed a job transfer until completion of a minimum of twelve
months service within the same department; without prior approval of the President or
his designee is a must.
Job transfers should be considered when it is more appropriate to move an internal

candidate as opposed to hiring an individual from outside the Company.
When considering a job vacancy, attention should be given to all employees within the
departments of the organization, who may have the qualifications for the position.
Candidates must be evaluated based upon organization hiring plans, job descriptions,
documented performance skills, knowledge & prior experience & education.
A job transfer must be based on approvals of the Department Heads & the Director
Human Resources & Administration.

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5.5 COMPENSATION MANAGEMENT:
SALARY POLICY:
1. OBJECTIVES:
The purpose of this policy is to have salaries subject for review in January of each
calendar year in the light of merit and inflation.
An employee, who is employed on a job with title and specifications, will receive
compensation that is relevant to field experience matching with approved salary structure
of his / her position.
2. POLICY GUIDELINES:
The Company will pay salaries of the employees and all other amounts due to
them during office hours and on the job site as follows:
The Company will open an account for each permanent employee in a bank that will
be credited by his / her salary at the end of each month.
Upon termination of service (end of service), the employee will receive his / her salary
within 15 days up to the time of date of his / her last working day.
Upon resignation, the employee will be paid his / her dues during a maximum period
of 15 days from the date he / she left the job.
3. SALARY ADMINISTRATION PROGRAM:

3.1 SALARY OBJECTIVE:
The salary administration program is designed to meet the following objectives:
Attract & retain the services of competent qualified employees.

Marketing Project
Provide fair and equitable compensation to each employee and to ensure that the value
of each job relative to all other jobs within the Company is established and maintained
on a fair and equitable basis.
Provide annual performance appraisal for employees to improve their job performance
and to encourage them to aspire for promotions to jobs with greater responsibilities i.e.
fairly compensate employees based on individual accomplishments and annual
performance appraisals.
Ensure that salaries are competitive and in line with salary levels that prevail in the
industry.
Instill employee confidence in the Company’s compensation policies and practices.
3.2 SALARY OUTLINE:

The “Basics” of the salary administration program can be summarized in the
following manner;
The Director Human Resources & Administration and the concerned Department
Head will analyze each job classification.
The HR Department determines an appropriate salary range in relation to similar jobs
at other well respected companies (salary survey).
The HR Department will analyze each job and assign a job code, hire rate, minimum,
mid and maximum point rate. (Salary Structure)
3.3 SALARY SCALE:

Each job is assigned a minimum salary, established according to the salary survey
results, which specifies the minimum salary that may be paid to incumbents in each
job.
Minimum through maximum scales is built on a system of mathematical calculations
to allow for overlapping between levels as a result of salary, merit or promotional
increase.

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3.4 SETTING STARTING SALARIES:

Objective:
To ensure that each employee is given the starting salary of the title level in which
his / her position and experience fall. Also to ensure that consideration is given to past
experience and qualifications when setting starting salaries.
Factors to be put into consideration for setting salaries within the range determined by
the Department Head & the HR department.
The starting salary offered to new candidates by UFONE will be dependent on two
factors:
The particular job level for which the job offer is being made.
The candidate’s education, experience and qualifications as compared with the
minimum qualifications required by the job specification.
4. SALARY ADMINISTRATION PROCEDURES:

Human resource department Prepare all documentations affecting salaries that include:
Recruits, transferees and end of service.
Promotion and increments.
Allowances, bonuses and incentives.
Discipline
Prepare the payroll sheet including all details
Review the payroll sheet and documentation affecting salaries
Entry of all salaries based on promotions and Commission
 Salary and allowances
 Deduction
Review outputs
 Prepare salaries sheets of all departments.
 Prepare transfers to banks.
 Prepare deductions sheets.

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Department-wise/Location-wise payroll summary for accounting treatment

Final approval by the CFO and the Director Human Resources & Administration.
HR will apply necessary procedures to pay salaries to employees.
HR will transfer salary of employees to concerned Bank.
Employee will receive salaries from his / her account.
5. WORKING HOURS:
1. PURPOSE
Hours of work are scheduled to meet the production and work requirements of the
Company, and are in conformance with all applicable local laws and practices.
2. OBJECTIVE:
A) Payroll Month:
The payroll month is on a calendar month basis.
B) Working Hours:
The Company shall determine the hours of work:
Office Hours Operations Center:
Monday through Friday
09:00 am. – 6:00 pm.
Saturday
10:30 am. – 2:30 pm.
Office Hours Head Office:
Monday through Friday
09:00 am – 6:00 pm.
Sixty (60) minutes meals break each day from Monday through Thursday.
Ninety (90) minutes meal / prayer break for Friday.
C) Exceptions:
Employees may be requested to work on any of the holidays or regularly scheduled
day of rest including Saturday/Sunday, if the Company’s business so requires.

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5.6 PROBATION PERIOD:

EMPLOYMENT CONTRACT:
Recruitment of an employee will be finalized in accordance with employment contract
signed (Two Copies with employees signatures) in English. A copy will be handed
over to the employee & a second copy will be kept in his / her service file.
The contract shall outline the employee’s position, salary & benefits he/she will enjoy
& any other necessary statements.
All terms of an employee’s contract will be in effect & enforced as of the date of
starting work by the employee.
The Company can extend the contract for another year if a need is felt.
PROBATION PERIOD OF EMPLOYMENT:
All permanent employees will be on probation for the initial 6 months of employment.
During this period the Company will evaluate the individual’s ability to perform
successfully as a member of the Company.
Ten days before the end of the 6 months probation period, the employee’s immediate
manager will conduct a written evaluation.
The Immediate supervisor of the new employee must complete the performance
evaluation document with a recommendation for continuing or terminating his/her
employment not less than ten days prior to the expiration of the probationary period.
The signature of a Department Head is required in case of termination.
The written evaluation will be sent to the Director Human Resources &
Administration for proper handling.

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5.7 Performance criteria:
PERFORMANCE APPRAISAL POLICY:

1. OBJECTIVES:
The purpose of this policy is to provide a formal review program to evaluate work
performance and to promote communication and discussion of job performance. The
intent of these discussions should be to review current job performance and
responsibilities, set goals and discuss future opportunities with reference to past
performance at ufone.
The Objectives of the Performance Review Program are:

To measure work performance.
To motivate and assist employees in improving their performance and achieving their
personal/professional career goals.
To identify employees with high potential for advancement.
To provide objective information for making decisions on salary increases,
promotions, bonus and transfers.
To identify employees training and development.
To provide a solid path for career planning for each individual.
3. POLICY GUIDELINES:
The performance appraisal is done on an annual basis (from January 1st to December
31st).
Every employee should know what is expected from him / her through direct
supervisors. He / She should participate in & agree with the goals & objectives
set by himself / herself in accordance with the company’s business plans & objective
goals.
Everyone should have the opportunity to perform & develop according to the set
objectives & agreed upon duties. He / she should also expect self-assessment and take

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actions to develop his / her competency level & increase his / her participation in the
achievement of the company’s objectives.
To ensure openness, consistency & objectivity, the agreed competency framework
covering all aspects of the job should be used as the basis for performance planning
appraisals. Accordingly, it should be well known & clear for both the Employee and
the Manager covered.
Department Heads & Managers involved in performance appraisals should be well
trained & familiar with the applied performance appraisal system & the appraisal
interviewing techniques.
The performance evaluation program requires that an annual meeting be held with
each employee; however, Coaching, Counseling and Guidance must be an on-going
process for the desired improvement and development to be achieved.
To give a chance to Subordinates to evaluate their seniors a 360 Degree Evaluation
will be conducted at the time of the Performance Evaluation.
5.8 INCREMENTS:
The Company shall decide at the end of each financial year, according to it’s financial
position, whether it will give increments or not. The increment shall be determined as
a percentage of salaries & distributed among employees in accordance with their
performance appraisal ratings.
For the employee to obtain a salary increase, he should complete one year in the
company service from the date of his / her appointment or the date he/she was given
previous increment & satisfy the condition that his / her performance appraisal rating
for this year is not less than “V.GOOD”.
Once the increment is decided, it shall be effective from January of each calendar year.
5.9 PROMOTIONS:
The Employee shall be eligible for a promotion if he fulfils the following conditions:
Existence of job vacancy.
Fulfillment of the qualifications & experience required for the higher level

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Being evaluated not less than “Very Good” in the last annual appraisal report.
Completing a minimum of one or two years in the current grade. (Exceptions could
take place if a position becomes vacant and an available candidate meets the
requirement for the vacant position)
Promotion should be directly shifted only to the next level from the grade the
employee is currently filling.
The employee shall be given the starting salary of the job he/she is promoted to
starting from the date he/she holds the position. If his / her current salary is equal to or
higher than the starting salary of this post, then he/she shall get an increment equal to
the last increment obtained previously.
In case where more than one employee meets the requirements for promotion to a
higher position, the one who succeeds in obtaining the highest evaluation rating shall
precede the others. If the performance evaluation ratings are equal, then the senior
employee shall be rewarded with the position.
Employees who received disciplinary penalties of five days or have been suspended
from work for five days shall not be entitled for promotion before the elapse of six
months from the date the penalty was inflicted/imposed. In all cases, the employee is
not entitled for promotion during the procedures of disciplinary enquiries until a
verdict has been reached in his / her particular case.
5.9 BONUS:
The employee may receive 1-3 month’s bonus subject to evaluation of accomplished
objectives.
For an employee to be eligible for a bonus, the employee must complete 6 months in
the Company service from the date of his / her appointment.
The bonus shall be effective from January of each calendar year.

An employee who has completed six months but not a full service year during the
period of assessment may receive a prorated bonus payment.

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5.10 EMPLOYEE’S WELFARE POLICY:

MEDICAL CARE
1. OBJECTIVES:
To provide assistance to employees of the Company and their immediate eligible family
members in maintaining acceptable physical fitness and health standards. It is also aimed
at lessening the financial burden of employees and assisting them by providing reasonable
compensation to treat themselves and any dependents for illness or any other ailments.
2.PROCEDURE:
UFONE provides 100% medical insurance to all its permanent employees, their children
and spouse for indoor treatment. The indoor treatment should be done at the specified and
approved hospitals on the panel of the Company at every station.
Medical allowances (cover) will not be given for the following:
Purchase of contact lenses.

Root canal / crowning treatment.
3. HOSPITALIZATION:
UFONE shall provide hospitalization benefits through Group Hospitalization
Insurance coverage for all employees and their dependents.
UFONE shall pay 100% of the premium for employees and dependents. Details of the
Hospitalization Insurance Program will be provided to all employees.
The definition of dependents under this policy is employee’s spouse in case of
marriage and children up to a limit of four till the age of 21 for boys and until marriage
for girls. The Policy covers only 4 Children.

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The maximum amount of benefits payable during the period of cover for one year for indoor
and out door are shown as below:
Plans
Benefits Description Limits
Room Charges per day A
Rs
Hospital/Surgical Expenses 1500
 Limit for Confinement: 65000
Total room rent,

hospital/surgical
expenses per insured
family member.
25,000
 Complementary
Additional cover for
hospitalization due to
accidental injuries per
insured
Maternity Expenses per annum

20,000
(3 children)
25,000
Normal delivery
Fatal Disease Exp. Benefit 100000
Any employee benefits under this Insurance Coverage shall terminate when he / she
resigns or service is terminated. The Human Resources Department shall inform the
Insurance Company of the same.
In case of a change of employee’s marital status, the employee shall be required to
inform the Human Resources Department immediately. Same is the case of change in
family status (birth of a child or death of a child / spouse).

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Note: Same medicine if purchased within a month over a value of Rs.500/- or where the
total bill exceeds Rs.800/- for more than one medicine will require diagnosis detail which
should be noted on the prescription by the attending doctor. We may also ask for further
information like lab reports, clinical summary and completion of OP-2 form (if needed).
5.11 TRANSPORTATION:
CAR POLICY:
1. OBJECTIVES
To give higher Management the facility of availing conveyance for their official duties at
Company’s cost.
2. PROCEDURE:
Employees up to the level of Chief Officers and Directors will be provided with a Company-
maintained car with fuel.
For execution of official field duties, employees in any category will be authorized to draw
monthly transport allowance as a part of his/her salary at a predetermined rate.
Chief Officers, Directors and Respective departments will be authorized for
fuel as per the following:
Chairman: (1 Car) Cost of 400 liters of diesel
President: (1st Car) Cost of 400 liters of petrol
President (2nd Car) Cost of 300 liters of petrol
Chief Officers (1st Car) Cost of 350 liters of petrol
Chief Officers (2nd Car) Cost of 150 liters of petrol
Directors: Cost of 200 liters of petrol
Admin Pool Cars Cost of 300 liters of petrol

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Each of these cars will be entitled to Repair and Maintenance as Follows:

Rs. per Month
Chairman 10,000
President 20,000
Chief Officers (1st Car) 10,000
Chief Officers (2nd Car) 5,000
Directors 5,000
3. TRANSPORT FOR OUT-STATION DUTY:

Entitled employees proceeding to another city if using his/her own car can claim for the
allowance prescribed in the Travel Policy.
5.12 CREDIT ADVANCE POLICY:

1- PURPOSE:
To assist UFONE employees in applying for credit facility and define guidelines for
employees in need of salary / house rent advance from Company.
2- OBJECTIVE:
2.1 Loan:
The Company will not extend a loan to any employee.
2.2 Credit Facility:
All confirmed employees may request a comfort letter from the Company when applying
for any credit facility from a financial institution. However, the Company is not
liable for any outstanding dues by the employee. It is the responsibility of the
employee to maintain a good credit rating with the financial institution.
2.3 Salary Advance:
Employees can submit an application for advance amount equivalent to one (1) month’s
gross salary. The total advance amount will be adjusted in the next six months
salary.
3- PROCEDURE:

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3.1 Credit Facility:

A written request should be forwarded to Human Resources Department for issuance of a
comfort letter. The letter will indicate employee’s date of joining the Company,
current designation and monthly salary earned by the employee.
3.2 Salary Advance:
A written request for salary advance amount should be forwarded to the Human
Resources Department with the Department Head’s recommendation. Human
Resources Department will approve and forward the application to the Finance
Department for issuance of advance amount only after the approval from the
President.
The Credit advance will be approved only by the President.
5.13 RENT AND RESIDENCE:

1- PURPOSE:
To establish a uniform policy for providing adequate financial support to those employees
who are being posted / relocated to another city on Company’s request.
2- OBJECTIVE:
The Company shall provide appropriate resources to employees required to relocate on
Company’s request, in accordance with and to the extent of the limits laid down by this
policy. Movement of all Furniture and Appliances will be done on the Company’s
expenditure. The Company will move all Personal belongings of the employees (All Grades)
by rail. In addition the Company will also provide the employee with air tickets for the
Employee, Spouse and Children. These will be allotted as follows:
A. Chief Officer & Directors:
On permanent transfers from one city to another within Pakistan, only if specifically
approved and signed by the President, Directors and Chief’s are entitled to Business
Class Tickets for Self, Spouse and Children for relocation.
B. Manager’s and below:

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On permanent transfers from one city to another within Pakistan, only if specifically
approved and signed by the President and the Director Human Resources &
Administration, Managers and Below are entitled to Economy Class Tickets for Self,
Spouse and 3 Children for relocation.
C. House Rent Allowance:

45 % of 3 months Gross Salary will be given as a House Rent Allowance on the
permanent Transfer of an employee. The Company will deduct this amount in 6 equal
installments.
5.14 VACATION:
1- OBJECTIVE:
UFONE provides all its regular and contractual employees regular annual leave with pay
in order to maintain health, morale and efficiency. This policy outlines the conditions
under which employees become eligible for annual leave with pay.
2. PROCEDURE:
Employees may request for annual leave, by using prescribed forms addressed to their
supervisors and sent for record to Human Resources.
Approval will depend upon the work needs of the department, although the supervisor
must ensure that the employee will have time off within the calendar year following
the vacation eligibility date.
3. EXCEPTIONS:
Any exceptions to this policy must have the prior approval of the President and the
Director Human Resources & Administration.
Any Leave not availed will automatically lapse and will not be carried over to the next
year.
Exceptions however will only apply to illness, major family problems, etc., which will
be subject to formal approval of Department Head and President.

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4. CASUAL LEAVES:
PURPOSE:
While good attendance is essential to the Company to achieve its goals and objectives and
is the key factor used to evaluate performance in determining salary increase and
eligibility for promotion, the Company recognizes the necessity for employees to be
absent from work for reasons beyond the employee’s control. The purpose of this policy is
to set forth the procedures and conditions under which employees may be granted time off
with pay in the event of unusual and justified circumstances.
Casual leave shall be approved in advance

Casual leave cannot be availed concurrently with Annual leave
A total of 7 casual leaves per year are authorized to the employees.
5.15 HEALTH AND SAFETY PROGRAM:

1.1.PURPOSE:
The safety of employees is everyone’s responsibility. Accidents, precaution and efficient
work go hand in hand. All levels of employees have a primary responsibility for the
safety and well being of all of us.
Therefore, interest in practicing safety prevention must be encouraged by:
Setting good examples
Acting upon safety records
Reviewing safety programs
Holding personal interviews or group conferences
Starting activities that will stimulate and maintain employee’s interests.
2- MODE OF OPERATION:

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A) Safety Committee:
To accomplish the above policy, a Safety Committee will be set-up as follows:
1. President
2. Secretary
3. Member
4. Member
B) Functions of Safety Committee:
The functions of the Safety Committee are:
1. Development of policy recommendations
2. Encouraging safety efforts
3. Proper enforcement of safety needs
4. Frank and constructive discussion on safety programs
5. Cooperation with other Companies
6. Education regarding safety
Objectives of the Safety Committee:
To evaluate and investigate the adequacy of existing safety measures and make
recommendations relating to safety of all employees and visitors and protection of
all Company assets.
C) POTENTIAL HAZARD AREAS:
No place is hazard free. Potential hazard sites include
1. Buildings
2. Electrical Installations
3. Wiring
4. Transformers and Switchboards
5. Roofs
Catastrophe Hazards happen because of:

1. Structural deterioration

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2. Foundation failure
3. Overloading
4. Alteration
5. Fire and Explosions
5.16 INSURANCE POLICY:

1. PURPOSE:
The policy states that UFONE shall provide all employees in the category of Workers as
described by Labour Law, with Group Life and Accidental Death non – contributory, 24
hours insurance coverage. Details of insurance coverage through out Pakistan will be
provided to these employees as under the Labour Laws of Pakistan.
2. OBJECTIVE:
The objective of providing Group Life Insurance and Accidental Death insurance
coverage is to lessen the financial burden of an employee’s dependents in the event of
death of the employee and to provide compensation to an employee.
3. PROCEDURE:
The Human Resources Department shall register new employees on the date of
employment.
All claims arising out of this insurance coverage shall be handled by Human
Resources Department who may require the employee’s dependents (in case of death)
to submit whatever evidence necessary to substantiate the claim.
Any employee benefits under this insurance coverage shall terminate when he/she
resigns or is terminated.
4. RESPONSIBILITY:
The Human Resources Department is responsible for maintaining and revising this
policy.

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FLAWS IN PRACTICE
EXIT INTERVIEW:
Exit Interview Questionnaire:

The purpose of this questionnaire is to help the Company determine the reasons for
staff turnover. The Company appreciates your efforts in answering these
questions openly. Your answers will not be used as part of any decision
regarding future re-employment. All information provided in this form will
remain confidential.
Name: --------------------------------------------------------------------------------------------------
Employee No: --------------------------------- Department: --------------------------------------
Please indicate the reasons of your leaving the job, on scale 1 to 5. Mark 5 as the most
important reasons in your opinion and 1 as the least.
Salary
Promotion/Advancement Opportunity
Job Challenge
Job Location
Work Load
Company Benefits
Working Hours
Relationship with the Supervisor
Following questions will help us address the areas that need improvement. Please rate
your reactions according to the following point systems:

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Excellent 5 Points
Good 4 Points
Satisfactory 3 Points
Fair 2 Points
Poor 1 Point
How would you rate the Company as a place to work?
What is your overall view of the Company’s policies and procedures?
How do you rate the working conditions and physical facilities?
Compared with other Company’s how do you rate our benefits?
How would you rate your the initial training you received?
How do you rate subsequent training opportunities to improve your skills and
opportunities?
How well do you understand the performance standards you were expected to meet?
How well were you informed about the changes that affected your work?
How much of a chance do you feel you had to develop your full potential?
How do you rate your supervisor’s willingness to answer questions and help solve
problems?
To what extent were you encouraged to offer suggestions and improvements?
What level of respect did you hold for your supervisors?
How would you rate the spirit of cooperation and teamwork among the employees in your
department?
Signature of Employee---------------------- Date------------------

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Interview Guide Supervisor
Listed below are some questions, which may be important to discuss with the supervisor
of a resigning employee.
Concentrate on areas of concern that came up in your exit interview meeting with the
employee.
Did you consider the employee’s performance satisfactory or unsatisfactory?

___________________________________________________________________
Were these observations:

Discussed at any time with the employee? Yes / No
Recorded as part of the employee formal annual evaluation? Yes / No
Do you think the employee was assigned to the right position in the Company?
If NO, Why______________________________________________________
Are you aware of the personal problems such as personality conflicts, with others, etc?
Which you feel may have the employee to decide to resign from the Company?
Yes/NO
1. Did this employee ever tell you about concerns regarding discipline process, correct
progress, etc.?
Yes/NO
2. Did this employee accept the responsibility well? Yes/NO
3. Do you think the employee should leave the Company?

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If Yes___________________________________________________________
8. Is there any further information, which you can offer that might explain why the employee has
resigned?
_________________________________________________________________________
_________________________________________________________________________
Supervisor___________ Department Head___________ Head of HR__________
Extra Ordinary Findings:
To be completed in by the Human Resources Department, after interviewing the employee and his
supervisor.
1. Leaver’s overall impression of the Company.

________________________________________________________________________________
________________________________________________________________________________
__________________________________________________
2. Reasons for leaving.

________________________________________________________________________________
________________________________________________________________________________
__________________________________________________
3. Relationship with manger.

________________________________________________________________________________
________________________________________________________________________________
__________________________________________________
4. Relationship with colleagues.
________________________________________________________________________________
________________________________________________________________________________
________________________________________________

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360 Degree Evaluation Form
Place an "x" in the appropriate boxes for relevant performance topics. Include supporting
comments as needed.
Adaptability/Flexibility: Excellent Good Average Bad Very Remarks

Bad
1. Has an inspiring personality.
2. Is open to new ideas.
3. Takes on new work when
needed to help the team.
4. Maintains calm, easy to work
with, when under pressure.
5. Controls emotions at all times.
6. Listens to minority opinions
during discussions.
7. Demonstrates appropriate
flexibility as projects and
activities progress.
Additional Comments (If any):

Communication: Excellent Good Average Bad Very Remarks
Bad
1. Communicates clearly and
directly.
2. Explains things in detail when
required.
3. Writing is clear, thorough, and
easy to understand.
4. Shares information, ideas with
others.
5. Has good listening skills.

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6. Delivers good presentations,
7. Ability to communicate freely

with subordinates.
8. Capable of bridging the gap
between the authorities and
subordinates.
9. Maintains Confidentiality
when discretion is required.
Decision Making/Judgment: Excellent Good Average Bad Very Remarks

Bad
1. Makes logical, systematic
decisions.
2. Builds consensus for decisions
when possible.
3. Can make difficult/unpopular
decisions.
4. Considers impact of decisions
on others.

Dependability: Excellent Good Average Bad Very Remarks
Bad
1. Meets commitments made to
co-workers.
2. Accepts accountability for
success and failure.

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Initiative: Excellent Good Average Bad Very Remarks

Bad
1. Takes independent action.
2. Can take initiative at the

appropriate time.
3. Seeks out new responsibilities
and assignments, volunteers for
team projects.
4. Takes initiative to improve
own performance.
Creativity/Innovation: Excellent Good Average Bad Very Remarks

Bad
1. Works to identify innovative
ideas and approaches for doing
a job.
2. Challenges the status quo.
3. Supports change.

Interpersonal Skills: Excellent Good Average Bad Very Bad Remarks
1. Solicits performance
feedbacks and handles
constructive criticism.
2. Builds strong relationships.
3. Is flexible/open-minded.
4. Exhibits a strong personal
discipline.
5. Works well in groups.

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6. Helps resolve conflicts.

7. Encourages collaboration.
8. Works well with other
departments.
9. Listens to and respects others'

ideas.
10. Shares leadership
responsibilities / awards with
subordinates when appropriate.
Job Knowledge: Excellent Good Average Bad Very Bad Remarks
1. Has necessary job knowledge.
2. Has necessary technical skills.
3. Keeps job knowledge up to
date and looks for learning
opportunities.
4. Ability to transform theory
into practical form.
Leadership: Excellent Good Average Bad Very Remarks

Bad
1. Can be persuasive and
convincing.
2. Has the ability to give
instructions clearly.
3. Can motivate and inspire.
4. Can both lead and let others
lead.
5. Can inculcate drive and
motivation in subordinates.
6. Exhibits leadership qualities,
and can carry along the team.
7. Can maintain order and

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discipline in others.
8. Can chart out a career plan and
the requisite training for his /
her juniors.
9. Provides regular feedback

regarding a subordinate’s
performance.
10. Show’s regard for under
command’s welfare.
11. Is constructive in his / her
approach while addressing
differences.
12. When there is a disagreement
he works to identify practical
solutions.
Planning and Management: Excellent Good Average Bad Very Bad Remarks
1. Develops a meeting agenda.
2. Sets clear goals for meetings.
3. Encourages and balances
input.
4. Keeps information organized
and accessible.
5. Responds quickly to
information requests.
6. Coordinates plan with others.
7. Considers co-workers
schedules, commitments when
planning.
8. Pays attention to minute
details

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FINANCIAL PLAN
6.1 Annual Average Sales, Income & Expense:

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Annual Average Sales, Income &

Expense (Pak Rs)
as of: 1/06 1/07 1/08
Sales 1,480,118 1,487,240 1,480,972
Cost of Sales 466,829 478,594 508,122
Gross Profit 1,013,289 1,008,646 972,851
Officers 98,132 93,845 130,622
Comp.
Salary-Wages 302,388 355,599 311,893
Rent 79,334 161,366 81,602
Taxes 54,764 59,787 57,610
Interest paid 15,985 7,882 13,773
Amort. & 33,895 29,894 55,833
Dep.
Advertising 15,393 22,903 14,662
Benefits- 27,974 30,488 30,804
Pension
Other SG&A 303,276 172,817 203,337
Exp.
Net Profit 82,147 74,065 72,716
6.2 Annual Average Sales & Income Statement %:

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Annual Average Sales & Income

Statement %
Sales 100.0% 100.0% 100.0%
Cost of Sales 31.54% 32.18% 34.31%
Gross Profit 68.46% 67.82% 65.69%
Officers Comp. 6.63% 6.31% 8.82%
Salary-Wages 20.43% 23.91% 21.06%
Rent 5.36% 10.85% 5.51%
Taxes 3.70% 4.02% 3.89%
Interest paid 1.08% 0.53% 0.93%
Amort. & Dep. 2.29% 2.01% 3.77%
Advertising 1.04% 1.54% 0.99%
Benefits-Pension 1.89% 2.05% 2.08%
Other SG&A Exp. 20.49% 11.62% 13.73%
Net Profit 5.55% 4.98% 4.91%

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6.3 Balance Sheet:
Balance Sheet
Assets as of: 1/06 1/07 1/08
Cash 120,820 107,594 106,519
Receivables 89,460 90,512 81,422
Inventory 37,087 33,373 37,460
Other Current Assets 38,561 44,233 39,323
Total Current Assets 285,928 275,713 264,724
Fixed Assets 280,752 226,719 266,518
Other Non-Current Assets 99,373 80,025 108,470
Total Assets 666,053 582,456 639,712
Liabilities
Accounts Payable 63,626 44,724 38,009
Loans/Notes Payable 18,947 12,314 19,920
Other Current Liabilities 129,859 85,305 97,967
Total Current Liabilities 212,431 142,344 155,896
Total Long Term Liabilities 194,211 160,479 158,477
Total Liabilities 406,642 302,823 314,373
Net Worth 259,411 279,633 325,339
Total Liabilities & Net
666,053 582,456 639,712
Worth
6.4 Balance Sheet - percentage-based:

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Balance Sheet - percentage-based

Assets as of: 1/06 1/07 1/08
Cash 18.14% 18.47% 16.65%
Receivables 13.43% 15.54% 12.73%
Inventory 5.57% 5.73% 5.86%
Other Current Assets 5.79% 7.59% 6.15%
Total Current Assets 42.93% 47.34% 41.38%
Fixed Assets 42.15% 38.92% 41.66%
Other Non-Current Assets 14.92% 13.74% 16.96%
Total Assets 100% 100% 100%
Liabilities
Accounts Payable 9.55% 7.68% 5.94%
Loans/Notes Payable 2.84% 2.11% 3.11%
Other Current Liabilities 19.50% 14.65% 15.31%
Total Current Liabilities 31.89% 24.44% 24.37%
Total Long Term Liabilities 29.16% 27.55% 24.77%
Total Liabilities 61.05% 51.99% 49.14%
Net Worth 38.95% 48.01% 50.86%
Total Liabilities & Net
100% 100% 100%
Worth
6.5 Financial Ratios:

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current ratio
quick ratio
Industry
Industry
1/06 1.35
1/06 0.99 1/07 1.94
1/07 1.39 1/08 1.70
1/08 1.21

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current liabilities: net worth total liabilities: net worth

Industry
1/06 1.57
Industry
1/07 1.08
1/06 0.82
1/08 0.97
1/07 0.51
1/08 0.48
current liabilities: fixed assets: net worth

inventory
Industry
Industry
1/06 5.73 1/06 1.08
1/07 4.27 1/07 0.81
1/08 4.16 1/08 0.82
More Financial Ratios:

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receivables
cash turnoverturnover
(X)% (X)
Industry
6.6 return on sales: Industry
1/06 16.55
1/06 12.25
1/07 16.43
1/07 13.82
1/08 18.19
1/08 13.90
return on sales (%)

Industry
1/06 5.55
1/07 4.98
1/08 4.91
6.7 Cash Turnover:

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6.8 Inventory turnover:
Inventory turnover (X)

Industry
1/06 39.91
1/07 44.56
1/08 39.54

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ANALYSIS
7.1 PEST ANALYSIS:
POLITICAL EFFECTS:

Marketing Project
Generally Ufone did not face any political problem or public pressure as it was a semi
governmental company but at the time of ETI SALAAT takeover of PTCL Ufone also face
some kind of public pressures of becoming privatize but these problems do not effect directly
to the company.
Govt. can play an important role n the development of company but they are giving more
value to foreign investors and give them incentives as well.
The way Ufone launch was remarkable but it loose its progress with the passage of time even
though it is providing good packages and facilities.
Opportunities Rating Threats Rating
Corrupt people 3-5
Good investment opportunity 4-5 Sales Tax 4-5
Govt. policies 4-5 Favorism 2-5
ECONOMICAL EFFECTS:

Marketing Project
Economic factors affect the business to a great deal because inflation, GDP and factors like
foreign exchange affect a business to a great deal. As for as Ufone is concerned, Pakistan’s
economy is not much stable. Most of the mobile users have more than one Sims of different
mobile companies. So in this way it is very difficult to understand which one is loyal to the
company.
In Pakistan due to improper wealth distribution 32 % people are under the poverty line. Most
of the population is this country is middle class. So to be successful, companies have to
provide cheap rates. According to statement of CEO of Warid telecom on GEO T.V; Pakistan
has the cheapest rates in the region in cellular industry.
Growing economy 4-5 Intensive competition 4-5
Skilled worker 3-5 Privatization 3-5
Growing Demand 5-5 Inflation 5-5
SOCIAL EFFECTS:

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As Ufone is Pakistani company, it is socially acceptable. Se people believe that we avail

services of Ufone because it is Pakistani company other says we use it due to good rates. All
the advertisement of Ufone is created in a way that is local and represents the people of
Pakistan.
Now social trends are changing with the emergence of Telenor and Warid. People want to get
Services offered by these international companies.
Brand Loyalty 4-5 User Awareness 3-5
Good will 3-5
TECHNOLOGICAL EFFECTS:
In Pakistan almost all companies are using the same technology in telecom sector. Due to
technology WAP, MMS, GPRS are introduced and still they are not very popular due to
unawareness of the most of cell phone subscribers.
The big change was occurred when aims technology is converted in GSM technology. But
fortunately Ufone was stared as a GSM technology service provider that’s way it does not
have to bear loses.

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High network capacity 5-5 Easy information diffusion 4-5
High network coverage 5-5 Heavy cost on equipment 5-5
VAS 4-5 Power shortage 2-5
Mobile banking 3-5
GPRS 2-5
Natural effects
Some time due to due to heavy rains or bad weather customer flow decreased. From 50-
60% prospects and customers do not visit franchises or customer care centers.
Increase customer flow 2-5 Decrease customer flow
7.2 INTERNAL FACTOR EVALUATION MATRIX (IFE):

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Key internal factors Weight Rating Weighted

(U Score
-fone)
Strengths
1 Sufficient Availability of services 0.10 3 0.30
2 Customer Focused Product 0.10 3 0.30
3 Parameters to measure Quality. 0.07 3 0.21
4 Technological Advancement 0.08 3 0.24
5 Skilled and Competent Labor(Blue Collar & White 0.10 3 0.30
Collar )
6 Marketing Intelligence Position 0.10 4 0.40
Weaknesses
1 Fragmented Industry 0.10 2 0.20
2 Govt. Restrictions 0.06 2 0.12
3 Lower Productivity 0.10 1 0.30
4 Cost Competitiveness 0.10 2 0.20
5 Technological Obstacles 0.09 2 0.18
Total 1.00 2.75
7.3 EXTERNAL FACTOR EVALUATION MATRIX (EFE):
Weight Rating Weighted

(U- Score
fone)

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Opportunity
1 Expand the international market share 0.10 4 0.40
2 Make Advancement in technology locally 0.10 3 0.30
3 Create the competition in international market 0.07 2 0.14
4 Research and product development 0.08 4 0.32
5 Installation of composite plant 0.10 3 0.30
Threat
1 Fragmented Industry 0.10 2 0.20
2 Govt. Restrictions 0.06 2 0.12
3 Lower Productivity 0.10 1 0.30
4 Cost Competitiveness 0.10 2 0.20
5 Technological Obstacles 0.09 2 0.18
Total 1.00 2.55
7.4 Ethical problems the Firm is facing:
After the emergence of the new telecom companies in Pakistan, Ufone is the one, which
suffered a lot because most of its employees were taken away by those firms which
offered them good salaries and incentives. Later on Ufone secret information was taken away
by those firms which affected the company a lot.
7.5 External Environment:
Market review:

Marketing Project
In Pakistan cell phone industry is still in progress stage according to CEO of Warid and
Ufone. They believe that for the next two years it will still progress and the subscribers
become doubled from present numbers. Then market becomes stable. But at this time
companies are trying to get more and more customers irrespective of their capacity and this is
bad for customers. It is a dilemma in Pakistan that no one hears the voice of customer.
Customers are frustrated and they are not loyal to any company. Some customers are bound to
use their connection because they believe their switching cost is very high. Companies are
attracting customer with new packages like Ufone has introduce Circle, Telenor has
introduced Talk Chalk, Warid give low rates at family & friends numbers and Paktel also
introduce an interesting package which attract customers a lot. Competition is increasing day
by day. Now the time has become to provide good services to the customers and fulfill all the
promises that have made by the companies other wise they have to face a lot of problems in
long run.
Growing industry 4-5 Intensive competition 4-5

Unaware customer 2-5 High sales tax 2-5
Penetration is easy 3-5
No strict rules 4-5
7.6 Key Competitors of The Company:
Key competitors are as follows

 Mobilink
 Warid

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 Telenor
 Paktel
 Insta fone
Ufone is facing a lot of competition in Pakistan as well as in other countries in which Ufone
has just started its services. To keep along with competitors and to stay in the market in
Pakistan as well as globally, Ufone should internationalize itself by good advertising and
meeting requirements which are not only required by Pakistani market but also by the other
markets such as Europe and America. According to the report of PTA the market leader is
Mobilink which has 56.5% share. After that Ufone with share of 24 % then Telenor and
Paktel with 6.7% and Warid is second last number with market share of 6.4% and at the end
there is Insta with share of 2.6%.
 Coverage 4-5  less profitability 4-5

 Distribution network 4-5  price war 3-5
 Easy recharge 3-5  heavy investment on 4-5

equipment
7.7 Distribution channels and buyers:
The company currently has 19 sales and customer care centers across Pakistan. Ufone is
providing its services in 136 cities and the number of franchises in allover Pakistan is 150.

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Ufone is considered to be one of the most active and aggressive competitor in mobile sector of
Pakistan. By the end of this year the company forecasts to have 1,000 cell sites in 170 cities
across Pakistan.
All franchises and customer service center have their own sales force team which has the aim
to distribute the Ufone Sims to different shopkeepers, departmental stores, PCOs. In this way
it is easy for the customer to get the sim from any where. Same is the case with card. It is
available in services centers, franchises, and on the places mentioned above. But the easy loud
service is just in franchises and service centers and management is thinking to launch it
locally.
7.8 End user customers:
Currently, with a market share of over 26%, and an aggressive commercial plan, the customer
base has more than tripled from the last fiscal year to over 5 million subscribers.
Today the company has more than 5 million subscribers with services in more than 136 main
cities. The last 3 year’s subscriber’s growth can be seen from above exhibit. The company has
been offering attractive prepaid packages to its customers thus having the highest prepaid
subscribers after Mobilink. The company is offering rates as low as Rs.
2.50 per minute for NWD and Local calls. Similarly, SMS charges are Rs. 0.99 paisa per SMS
to other networks and Rs. 0.49 paisa per SMS on its own network.
7.9 Supply:
The supply of sim and card is possible through service centers, franchises and through local
distributors like shopkeepers, departmental stores, PCOs etc.
7.10 Critical success factors:

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THREATS TO COMPANY:
1. Extensive competition
2. Brand loyalty
3. Entrant of new companies
4. Alternative products
Emerging technologies that are affecting the business are
 GPRS
 MMS
 Mobile Banking
OPPOURTUNITIES:
 Growing segment
 Pakistani company
7.11 Problems of company regarding customer:
LATE OFFERING OF VAS:

Late offering of value added services which become reason of switching the customers
towards other service providing organization
HIGH RATES:
High rates of post paid connections which moved the customers towards other cellular
companies who offered affordable packages.
LACK OF HOARDINGS:
Billboards or hoardings play a vital role in intimating the customers, as well as enhancing a
customer’s knowledge regarding a particular product or service.

Marketing Project
Similarly, billboards erected at the main roads of the city create awareness in the customers
regarding a particular product or service and thus enhances customer’s knowledge.
But Ufone is little behind from its competitors to have made proper arrangements to create
awareness as well as intimation in the customer.
LACK OF ADVERTISEMENT FOR POST PAID PACKAGES:
Ufone considered its post paid package more important but they did not pay proper attention
upon the advertisement of post paid packages. The only focus upon it’s prepay connections in
there promotions.
STANDARD INTERIOR DECORATION:
All the service centers and franchisee of Ufone are beautifully decorated but they are not
similar which each other to show the standard .So, special attention must be paid to its décor
by keeping in mind the company standard.
Advertising and Sale promotion of u-fone:

Marketing Project

FINAL U - FONE PROJECT (Submited) TO FAROOKI 29.07.2009

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Marketing Project

1. GENERAL FIRM DESCRIPTION ……………………………………4

1.1 Brief History of U-fone in Pakistan…………………………………….5

2.1 Situation analysis……………………………………………………….15

3.1 Who should be involved in communications planning………………....38

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5.1 Job analysis………………………………………………………….…..48

6.1 Annual Average Sales, Income & Expense……………………..............82

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7.1 Pest analysis………………………………………………………...........91

8. ADVERTISING AND SALE PROMOTION…………………………102

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1. GENERAL FIRM’S DESCRIPTION

1.1 HISTORY OF U FONE IN PAKISTAN:

1.2 ACTIVITY OF THE BUSINESS:

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1.3 STARTING DATE OF OPERATIONS:

1.4 GENERAL STRUCTURE OF THE FIRM:

Sales & Marketing Department

Customer Service department

Human Resource Department

1.4.1 Sales and Marketing Department:

Branding of the Product.

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Retail /Distribution of UFONE

1.4.2 Finance Department:

Processing of all Connections.

1.4.3 Customer service department:

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1.4.3.1 Operation Performance:

1.4.3.3 Support Centre:

Centralized back office for CS.

1.4.3.4 Service Centre:

Customer query handling/ resolving walk in problem.

1.4.4 Information Technology Department:

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1.4.5 Human Resource Department:

These are the functions performed by the HR Department:

1.5 STAGE AT BUSINESS LIFE CYCLE:

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1.6 VISION AND MISSION STATEMENT:

1.7 KEY PRODUCTS AND SERVICES OF THE FIRM:

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1.7.2 POST PAID:

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Foreign (International Roaming)

 From High To Poor Class People

 Higher Class Includes

 Money Market Dealers

 Members & Broker Of All Stock Exchange

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 Lower Class Includes

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2.1 SITUATION ANALYSIS:

BUSINESS DEFINITION AND SCOPE:

2.2 Four P’s & C’s:

Product / Customer’s Need:

Price / Customer’s Affordability:

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Placement / Customer’s Convenience: