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Applied Marketing
Submitted To:

Submitted By:

Muhammad Faiz Un Noor 085 Faran Saeed Shuja Ur Rehman 148 Hafiz Waqar Ishaq 043 Muhammad Bilal Amjad 190

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COMSATS Institute of Information & Technology M.A Jinnah Campus, Lahore.

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Executive Summary
This report gives a profile of Ufone and an insight into the Ufone Marketing Strategy. All the functions and operations of marketing strategy are defined in the report including; miles and snow strategy, resource allocation and blue ocean strategy for the Ufone. This report also reflects our learning and experiences at Ufone along with our responsibilities and the tasks that we performed. Our proposal would be of great use to Ufone and if followed properly, it can increase the performance of employees and finally the performance of the organization itself.

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ACKNOWLEDGEMENT
First of all we thank Allah Almighty the most beneficent and merciful who gave us strength, patience and inspiration needed to complete this task, which is essential requirement for the completion of our project. We would like to acknowledge,

For providing us the proper guideline for the accomplishment of our report and giving us practical exposure of work.

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Our Honorable Teachers & Loving Parents Whose, Love, Affection, Motivation, Patience, Support & Spiritual Inspiration Give us Encouragement, To all those People who have quenched for Knowledge, To all those who have dedicated their lives to others, To all of those who have served and sacrificed for Sake of Freedom To all of those people, who may be gone now, But they will never be Forgotten....

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Table of Contents
Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Contents Introduction Etisalat Head Quarter Mission Statement Vision Statement Objectives Target Level of Performance Time frame package Allocation Resources Miles and Snows Blue Ocean Strategy As Is strategy canvas Factor Comparison Four Action frame work A New value Curve BOS Minimizing Planning risk Minimizing Search risk Page 6 7 7 8 9 10 11 12 13 14 15 17 18 21 23 24 25 28

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Introduction
In 1990, Pakistan introduced its first mobile phone service called Paktel. After eleven years in Jan 29, 2001 ufone has started the operation under the brand name of ufone of telecommunication. Afterward ufone wants to expand his business so, the have to decide with the expansion in some cities of Pakistan. Actually ufone head office is in the Islamabad. After the privatization of PTCL, Ufone is now owned by Etisalat. The government of Pakistan granted them the license of Pak Telecom mobile limited to operate GSM 9000 all Around Pakistan. Under the agreement, Huawei will provide its future-oriented EnerG GSM solution to expand Ufones network to cover over 1,500 cities, towns, villages and all major highways in the country. The network also allows Ufone subscribers to enjoy high-speed wireless data service. The GSM contract for Ufone also include Huaweis new generation GSM dual density BTS that feature high integrated and receiving sensitivity to improve the network performance and lower the cost of network construction and O&M expenditure. In addition, Huawei will provide Mobile Soft switch solution based on the advanced R4 architecture to satisfy Ufones network expansion requirements, enables the telecom service provider to evolve into 3G smoothly. Ufone markets its prepaid services as Prepay. Ufone Prepay is more affordable. Its primary market is intended towards teenagers and students. Postpaid services are marketed by the name Postpay. These services are mainly targeted towards the business community of the country.

-8Ufone has a subscriber base of 12.49 million as of April 2007 and has network coverage in more than 1600 citi.

Etisalat
Emirates Telecommunication Corporation - Etisalat was founded in 1976 as a joint-stock company between International Aeradio Limited, a British Company, and local partners. In 1983 the ownership structure changed United Arab Emirates government held a 60% share in the company and the remaining 40% were publicly traded.

HEADQUARTER
The head office of the ufone is located in 13-B, F-7 Markaz Islamabad, Pakistan and it covered area is 2336 cities of Pakistan, GT Road, Super Highway & Motorway.

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Mission Statement

At Ufone we aim to provide you with wider coverage, superior connectivity, clear signals and voice quality, where ever you are in Pakistan. Ufone focus young generation. Ufone maintain high quality of service (near about to boom), to increase market share and market growth on value added services. Ufone keep you connected and giving different packages at low prices and our employees are valuable assets for Ufone.

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Vision Statement

To be the leading a telecommunication services provider in Pakistan by offering innovate communication solutions for our customers while exceeding shareholder value & employee expectations.

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Objectives
Dimensions

Age

Our main focus is young generation.

Demands

We give services to our customers and fulfill their demands and desires.

Network

Wider coverage, superior connectivity and voice quality will be the focus for customer. Charges

Low charges as per as their competitors are providing. Competitive advantage

Customer should feel convenient while using our network the best advantage against our competitors.

Franchise

We have round about 390 franchises in Pakistan and now our focus on multinational franchises.

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Employee

As you know our employees are valuable assets for us as well as there is a check and balance system on all of them for improvement of business.

Target level of performance

(On Dimensions)
Area base Our basic focus on the young generation but now we are wider in other means you can say that we are providing our services to the business level and multinational level afterwards our business is expand and more valuable for our customers as well as for our employees.

Mission Our target is to meet our mission thats why we are working hardly and give best services to customers and now as you know we are at international level so we are providing suitable packages to our best customers and facilitate them with as per as low charges so that they can achieve their target.

Signals We are wider then us means our network coverage is good against our competitors. Firstly, our target to meet the goal of our company that applying

- 13 the knowledge of people on the firm and then follow it with great care and then use valuable resources to appreciate our employees on their hard work.

Charges We are providing different packages at lower prices that can make calls easy for customers. Like 3.99rs for 500 SMS daily and just 0.49rs per 30 second to make a call to which you want!

TIME FRAME FOR PACKAGES

There are different packages provided to our convenient customers. We feel them pride. In real, they are our valuable assets. Packages are different so there are different charges on each packages here are some relatively charges of now a days packages:

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Allocating corporate resources

From this figure we can see that ufone Prepay is at Stars and Postpay on Question Marks this means that ufone should advertise the Postpay more than their Prepay connections as it should also be in the Stars for higher success and to get High growth-rate and High Market Share.In the other hand ufone mobile is Dogs because their Low growth and Low market shares.

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MILES AND SNOW STRATEGY

Prospector: In miles and snow strategy, Ufone takes place prospector. Ufone enters in the market with new ideas and new packages. Analyzer: In miles and snow strategy, Zong takes place in analyzer. Because Zong analyze the packages of prospectors and defenders. Defender: In miles and snow strategy, Moblink comes under the head of defender, it analyzes the propectors and then defend it for the sake of remain live in the market. Reactor: In miles and snow strategy, Telenor comes under the head of reactor because there is not a clear objective.

Prospector

Analyzer

Defender

Reactor

Ufone

Zong

Mobilink

Telenor

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Blue Ocean Strategy

How to Create Uncontested Market Space and Make the Competition Irrelevant

W. Chan Kim Rene Mauborgne

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Blue Ocean Strategy

INTRODUCTION Companies have long engaged in head-to-head competition in search of sustained, profitable growth. They have fought for competitive advantage, battled over market share, and struggled for differentiation. Yet in todays overcrowded industries, competing head-on results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. In a book that challenges everything you thought you knew about the requirements for strategic success, W. Chan Kim and Rene Mauborgne contend that while most companies compete within such red oceans, this strategy is increasingly unlikely to create profitable growth in the future. Based on a study of 150 strategic moves spanning more than a hundred years and thirty industries, Kim and Mauborgne argue that tomorrows leading companies will succeed not by battling competitors, but by creating blue oceans of uncontested market space ripe for growth. Such strategic moves termed value innovationcreate powerful leaps in value for both the firm and its buyers, rendering rivals obsolete and unleashing new demand. Blue Ocean Strategy provides a systematic approach to making the competition irrelevant. In this frame-changing book, Kim and Mauborgne present a proven analytical framework and the tools for successfully creating and capturing blue oceans. Examining a wide range of strategic moves across a host of industries, Blue Ocean Strategy highlights the six principles that every company can use to successfully formulate and execute blue ocean strategies. The six principles show how to reconstruct market boundaries, focus on the big picture, reach

- 18 beyond existing demand, get the strategic sequence right, overcome organizational hurdles, and build execution into strategy.

AS-IS STRATEGY CANVAS

The strategy canvas is the central diagnostic and action framework for building a compelling blue ocean strategy. The horizontal axis captures the range of factors that the industry competes on and invests in, and the vertical axis captures the offering level that buyers receive across all these key competing factors. The strategy canvas serves two purposes:

Firstly, it captures the current state of play in the known market

space. This allows you to understand where the competition is currently investing and the factors that the industry competes on.

Secondly, it propels you to action by reorienting your focus from

competitors to alternatives and from customers and non customers of the industry. The value curve is the basic component of the strategy canvas. It is a graphic depiction of a company's relative performance across its industry's factors of competition.

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Factor comparison

Sr* Competing Factor

UFONE (you)

JAZZ (c-1)

TELENOR (c-2)

Price

Low

High

High

Technology

High

Medium

Low

Voice Quality

High

High

Medium

After Sale Service

Medium

Low

High

Market Survey

High

Low

Medium

Adaptability

High

Medium

Low

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U fone

U fone

pric e

tec hnology voic e quality

after s ale market adaptability s ervic e s urvey

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J azz

J azz

price

technology

v oice quality

after sale serv ice

market adaptability surv ey

Telenor

Telenor

price

technology

v oice quality

after sale serv ice

market adaptability surv ey

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AS-1S STRATEGY CANVAS

Industry & U fone

U fone, 3

Industry, 2

price

technology v oice quality

after sale serv ice

market survey

adaptability

Four Actions Framework

1. Four Actions Framework is a tool that helps managers reconstructs buyer

value elements into a new value curve that breaks the differentiation/low cost trade-off. It forces the organization to ask the following four questions:

1.Which of the factors that the industry takes for granted should be eliminated?

2. Which factors should be reduced well below the industry's standard?

3. Which factors should be raised well above the industry's standard?

- 23 4. Which factors should be created that the industry has never offered?

The first question forces managers to consider eliminating factors that may have made sense in the past, but do not add much value to buyers today. The second question forces them to consider reducing factors that may have been over-designed in the race to beat the competition. Hence those two questions address the low cost side of the equation by helping companies reduce their cost structure. The third question forces managers to uncover and eliminate the compromises that the industry has forced buyers to make. The fourth question helps managers discover new sources of value for buyers. The last two questions address the differentiation side of the equation.

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BOS CURVE
U fone

Ufone

price

technology

v oice quality

after sale market adaptability U Map serv ice surv ey

- 27 MUNIMIZING PLANNING & SEARCH RISK Minimize Planning Risk

Question Arises in the mind of dealer from customers? We are providing our customers Ufone MAP. This is also for the non-

customers for promotion of Ufone. In your opinion, is this is the good way to search out the right path?

In your point of view, which telecom company gives you the best quality

service like; voice quality, signals quality etc?

- 28 Ufone providing U cell phones now, we are going to eliminate these cell

phones. What you suggest us that should we eliminate them or not? (The referred person is already known about U cell phones.)

When Ufone launch new package, how you react on that package, do you

adapt it quickly or after some survey?

Which telecom company gives you best technology in every field like;

booster system, signals, connectivity with internet, helpline or any other? How Ufone gather information from their customer via internet or

questionnaire or from any primary source like; AFTAB companies?

The curve of AS-IS STRATEGY shows in the earlier stage.

U fone

Ufone

price

technology

voice quality

after sale serv ice

market surv ey

adaptability

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After minimizing planning risk survey look like as

Sr. No. 1 2 3 4 5 6 7

Factors Price Technology Voice After Sales service Market survey Adaptability Ufone Map

High/Low low High High Medium Medium-high Medium High

The curve of AS-IS STRATEGY is shown after minimizing planning risk survey look like as;

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U fone

Ufone

price technology v oice after sale market adaptability U Map quality serv ice surv ey

Minimize Search Risk

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Minimize the search risk

1.

LOOK ACROSS ALTERNATIVE INDUSTRIES: What are the alternative industries to your industry? Why do customers

trade across them? By focusing on the key factors that lead buyers to trade across alternative industries and eliminating or reducing every thing else, you can create a blue ocean of new market space. 2. LOOK ACROSS STRATEGIC GROUPS WITHIN INDUSTRIES: What are the strategic groups in your industry? Why do customers trade up for the higher group, and why they trade down for the lower one?

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- 32 LOOK ACROSS THE CHAIN OF BUYERS: What is the chain of buyers in your industry? Which buyer group does

your industry typically focus on? If you shifted the buyer group of your industry, how could you unlock new value?

4.

LOOK ACROSS COMPLEMENTARY PRODUCT & SERVICE

OFFERINGS: What is the context in which your product or service is used? What happens before, during and after? Can you identify the pain points? How can you eliminate these pain points through a complementary product or service offering? 5. LOOK ACROSS FUNCTIONAL & EMOTIONAL APPEAL TO

BUYERS: Does your industry compete on functionality or emotional appeal? If you compete on emotional appeal, what elements can you strip out to make it functional? If you compete on functionality, what elements can be added to make it emotional?

6.

LOOK ACROSS TIME: What trends have a high probability of impacting your industry, are

irreversible, and are evolving in a clear trajectory? How will these trends impact your industry? Given this, how can you open up unprecedented customer utility?

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Minimize the search risk

Strategic group: Sms bundle for youth Call packages for middle age Both high and middle society Functional & emotional appeal: Call to relative & friends emotional appeal Call for business purpose functional appeal