Marketing Management (MKT 501) Report On Money Transfer in Bangladesh

Submitted To

Abu Daud Khan Course Instructor MKT 501

Submitted By Reshat Shabnam : ID: 10164024

Date of Submission: 1st September 2012

September 1st , 2012 1

Abu Daud Khan Course Instructor BRAC Business School BRAC University Dhaka-1212

Dear Sir, Here is the report that you have assigned us as a partial fulfillment of the course on Marketing Management.The report is aimed to give an overview of segmentation, positioning and 4Ps analysis of Money Transfer in Bangladesh. We hope that the analysis that we have carried out is up to your expectations. It has been an insightful experience for us and we tried our best to follow the tenets of final report.

Sincerely yours, Reshat Shabnam (ID: 10164024)

ACKNOWLEDGEMENT Having this report prepared was a team effort. But, first and foremost, we would like to show our gratitude towards Abu Daud Khan, the faculty of Marketing Management MKT 501 course. Had he not appointed us this assignment, we would not have had so much of knowledge about how to prepare a well written formal report that requires so much of intricate details and accuracy. Undoubtedly, this assignment would help us in future in our career, thus preparing this report has given us a great moral boost and confidence. We have gained thorough knowledge about marketing management. We again thank our faculty for devoting his precious time and knowledge to help us correctly prepare this report.

Finally we would like to thank all the people who have helped us gather information about this term paper. It is for their assistance, that we have reached this stage in finishing our report successfully.

Executive Summary 3

The online money transfer system, has added Bangladesh to its network of 38 recipient countries as the country's dependence on migrant-senders increases. The new World Remit online money transfer enables Bangladeshis to send money and airtime top-up from the comfort of their own home using a variety of payment methods including debit cards, credit cards and online bank transfers. It is a convenient and low cost means of sending money back home. Bangladesh is the seventh largest recipient of global remittances in the world, receiving $11.10 billion in 2010 according to the World Bank. Migrant workers remittances also make the biggest contribution to Bangladeshs foreign exports, making up 13% of GDP in 2010. This figure could be even greater, as estimates from the World Bank suggest high transfer costs by some services for remittances relative to the value sent swallow up as much as $15 billion per year in developing countries. Inter- Bank Transfer such as a Bankers Draft or Demand Draft (DD), Mail Transfer (MT), Telegraphic Transfer (TT) , played the curicial role before introduction of mobile money transfer system as well as newly introduced EFTN system . As a local money transfer system S. A paribahan has got great level of popularity as well as trustworthiness which does not directly affecting the our GDP growth. Transfer of money from one location to another with the use of devices like computer and /or mobile phones by Bangladesh Post Office. It is the replacement of paper based traditional money order to satisfy the urgent need of the customer as well as creating quick and regular flow of money through a trusted legalized channel. Computer needs continuous supply of electricity. But it is a major problem in Bangladesh especially in some rural areas. Bangladesh Post provides the monetary solution named Electronic Money Transfer Service (EMTS) for those want to send money instantly anywhere within the national territory. The current users of this service are businessmen, migrant workers, students and some companies bKash is designed to provide financial services via mobile phones to both the unbanked and the banked people of Bangladesh. The overall bKash value proposition is simple: a safe, convenient place to store money; a safe, easy way to make payments and money transfers. Customers will be able to receive electronic money into their bKash accounts through salary, loan, domestic remittance, and other

disbursements and eventually will cash out the electronic money at any of the hundreds of cash out agents which bKash assign.

Table of Content Description Page No

1. Introduction 2. Objective 3. Methodology 4. Limitation 4. bkas 5. S A Pribahan 6. Domestic Fund Transfer 7. Remittance 17 8. Bangladesh Post Office 9. Recommendation

01 01 01 01 02-09 09-12 12-14 15-

18-20 20

Introduction Domestic and international fund transfer have emerged as a key driver of economic growth and poverty reduction in Bangladesh, increasing at an average annual rate of 19 percent in the last 30 years (1979-2008). Revenues from Domestic and international fund transfer now exceed various types of foreign exchange inflows, particularly official development assistance and net earnings from exports. The bulk of the remittances are sent by Bangladeshi migrant workers rather than members of the Bangladeshi Diaspora. Currently, 64 percent of annual remittance inflows originate from Middle Eastern nations. Currently, 64 percent of annual remittance inflows originate from Middle Eastern nations. Other than this domestic inflow has made the remarkable success evidence on the economic growth

Objective To identify Segment, target market, positioning as well as analysis the 4ps of money transfer system with the special reference in Bangladesh. Methodology

The methodology followed in this report is based on primary and secondary sources. The required information for the introductory and descriptive part has been collected by: Primarily we collect data through:
Discussing and briefing with some professional bodies.

Secondarily we collect data from:

Following the official web site and some related Link of financial institution, leaflet as well as take the help from Google through searching Limitation The major limitations of this study are: Web base information does not organize enough to get full insight. Printed data are not available for preparing the report. It was very much costly to collect data.

 Some extent Non-cooperative behavior of some officials of the organization

bKash
bKash Limited (a subsidiary of BRAC Bank) is a joint venture between BRAC Bank Ltd., Bangladesh, and Money in Motion LLC, USA. The ultimate objective of bKash is to ensure access to a broader range of financial services for the people of Bangladesh. It has a special focus to serve the low income masses of the country to achieve broader financial inclusion by providing service that are affordable , comfortable and reliable

More than 70% of the population of Bangladesh lives in rural areas where access to formal financial services is difficult. Yet these are the people who are in most need of such services, either for receiving funds from loved ones in distant locations, or to access financial tools to improve their economic condition. Less than 15% of Bangladeshis are connected to the formal banking system whereas over 50% has mobile phones. These phones are not merely devices for talking, but can be used for more useful and sophisticated processing tasks. bKash was conceived primarily to utilize these mobile devices and the omnipresent telecom networks to extend financial services in a secure manner to the under-served remote population of Bangladesh.
Product Cash in You need to have money stored in your bKash wallet to avail the services. So, before doing any transaction, make sure you have sufficient balance in your wallet. For putting money in your wallet. 1. Go to any bKash agent 2. Let him know the amount you want to Cash In 3. Write down your wallet number and the Cash In amount in Agent register 4. Pay the amount of money you want to cash in 5. In exchange, the agent will send bKash money to your wallet. Cash In done! 6. You and the agent both will get confirmation message. Remember to put your signature in the agent register before leaving the counter

Cash Out If you have sufficient credit in your bKash wallet, you can withdraw cash anytime from anywhere. To Cash Out from your wallet1. Go to any bKash agent 2. Let him know the amount you want to cash out 3. Write down your wallet number & the amount in Agent register 4. Dial *247# on your mobile for bKash menu 5. Choose Cash Out 6. Choose From Agent 7. Enter Agents wallet number (ask the agent) 8. Enter the amount 9. Enter your wallet PIN 10.Done! You and the Agent both will receive confirmation message. Count the amount and put your signature in Agent register before leaving the counter Send Money Send Money enables you to transfer money to other's wallet. Follow the steps below 1. Go to bKash Menu by dialing *247# 2. Choose 'Send Money' 3. Enter the wallet number you want to send money to 4. Enter the amount you want to send 5. Enter a reference about the transaction. Do not use more than one word, avoid space or special characters 6. Now enter your wallet PIN to confirm the transaction 7. Done! You and the Receiver both will receive confirmation message

Token

From Token option, you can create token to send bKash Money to someone who does not have a bKash wallet. Afterwards, he can encash the token amount from any bKash agent. Here is how you do it1. Go to bKash menu by dialing *247# 2. Choose Token 3. Choose 'Create Token' 4. Select a Photo ID type of the Receiver from the given options. The Receiver has to show this ID while encashing the token 5. Enter the Photo ID number of the ID type that you have chosen earlier 6. Enter the amount you want to send 7. Confirm the amount and photo ID by pressing "1" 8. Now you need to give a Secret Code (not your PIN number, a different code for this transaction only). It is better to be a number ranging from 4 to 8 digits. Along with the selected Photo ID type and number, the receiver will need this code to encash the amount. Make sure that the Secret Code is secret between you and the receiver only.

9. Now enter your PIN to finish creating token.

10.You will get a confirmation message with details of the token you just created You have received your Token Number in that message which you will have to communicate to the receiver along with the Secret Code provided by you during creating the token. The receiver needs to go to a bKash agent along with his Photo ID to encash the token in 14 days from its creation. My bKash You can check your bKash Account balance, see mini statement, change your bKash Mobile Menu PIN, Activate ATM and change ATM PIN anytime you want from My bKash option. My bKash Check Balance To check your current account balance 1. Go to bKash Mobile Menu by dialing *247#

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2. Choose "My bKash" 3. Choose "My bKash" 4. Enter your Mobile Menu PIN You will see your current and available balance of your bKash Account. My bKash Request Statement You can see a Mini Statement with details of your latest transactions. 1. Go to bKash Mobile Menu by dialing *247# 2. Choose "My bKash" 3. Choose "Request Statement" 4. Enter your Mobile Menu PIN You will see the dates, types and amounts of your last 6 transactions My bKash Change Mobile Menu PIN For ensuring the security of your bKash Account, it is recommended that you change your bKash Mobile Menu PIN when you feel that it may have been compromised. "Change Mobile Menu PIN" from My bKash gives you that option. Here is how you do it 1. Go to bKash Mobile Menu by dialing *247# 2. Go to "My bKash" 3. Choose "Change Mobile Menu PIN" 4. Enter your "Old PIN" 5. Enter a new PIN to replace the old one 6. Enter the new PIN again to confirm You will see a confirmation message on your mobile that you have successfully changed your Old PIN. My bKash Activate ATM To avail the ATM Cash Out service, you need to activate this feature from your bKash Mobile Menu. After activation, you will be able to Cash Out from any bKash enabled BRAC Bank ATM. To activate the service, follow the steps below -

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1. Go to bKash Mobile Menu by dialing *247#

2. Go to "My bKash" 3. Choose "Activate ATM" 4. Enter a new PIN. This PIN will be your bKash ATM Cash Out PIN and is better to be different than your Mobile Menu PIN

5. Enter the PIN again to confirm

You will see a confirmation message on your mobile that you have successfully activated the ATM Cash Out service. My bKash Change ATM PIN For ensuring the security of your bKash ATM Cash Out PIN, it is recommended that you change it when you feel that it may have been compromised. "Change ATM PIN" gives you that option. Here is how you do it Go to bKash Mobile Menu by dialing *247#

1. Go to "My bKash"
2. Choose "Change ATM PIN" 3. Enter your "Old PIN"

4. Enter a new PIN to replace the old one 5. Enter the new PIN again to confirm
You will see a confirmation on your mobile that you have successfully changed your Old PIN.

Price From (Taka) To (Taka) Charges (Taka)

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50 101 301 1,101 2,601 4,501 6,501 8,501 Over 10,500

100 300 1,100 2,600 4,500 6,500 8,500 10,500

5.00 10.00 15.00 37.00 73.00 100.00 120.00 135.00 1.25%

Registration Cash In Send Money (Individual) Cash Out from ATM Payment (Merchant) Create Token (from Own Account) Create Token (via Agent) Encash Token Redeem Token (from Own Account) Redeem Token (from Agent) Registration Cash In Send Money (Individual) Cash Out from ATM Payment (Merchant) Create Token (from Own Account) Create Token (via Agent)

No charge applicable No charge applicable Tk. 2.00 (for any amount) 2% of transaction amount No charge applicable Tk. 5.00 (for any amount) Tk. 5.00 (for any amount) Same as Cash Out from Agent charges Tk. 5.00 Cash Out charge + Tk. 5.00 No charge applicable No charge applicable Tk. 2.00 (for any amount) 2% of transaction amount No charge applicable Tk. 5.00 (for any amount) Tk. 5.00 (for any amount)

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Encash Token Redeem Token (from Own Account) Redeem Token (from Agent) Promotion 1. University admission through bkash

Same as Cash Out from Agent charges Tk. 5.00 Cash Out charge + Tk. 5.00

2. Selecting agents in hotels & restaurants 3. Advertising 4. Direct marketing 5. Having contracts signed with agora, nandos, prothom, hallmark alo makes the publicity and advertising Place 1. bKash points 2. Sundarban courier 3. Grameen Phone 4. Robi 5. Banglalink 6. Brac bank atms 7. Continental courier

S A Paribahan
S A Paribahan is one of the oldest and the leader in business of transportation, courier service and money transfer in Bangladesh. It is providing successful service since 1982 with the government authorization. It has more than 5,000 staff and 63 branches all over the country. All branches of S A Paribahan are very careful to deliver customers goods and money to their desired destination. Customers also prefer courier and parcel services for quality and feel comfortable in sending goods and money from one place to another.

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Branches The head office of S A Paribahan is situated at 23/25 Kakrail, Shantinagar, Dhaka. It has 6 branches in Dhaka city- Mohakhali branch, Uttara branch, Elephant Road branch, Mirpur branch, Malitola branch and Kakrail branch. Other branches are situated at Narayangonj, Savar, Mymensingh, Jamalpur, Kishoregonj, Tangail, Faridpur, Chittagong, Rajshahi, Khulna, Sylhet and Barisal. Segment A market segment consists of a group of customers who share a similar set of needs and wants. There are three bases for segmenting consumer market Geographic segmentation, Demographic segmentation and Psychographic segmentation. Since the product of this company is money transfer, geographically it focuses on most of the districts in Bangladesh and demographically it focuses all generation, any type of income people, both male and female, and any aged people. That means this company does not focus any specific part. Target Market After evaluating different segments, the company can consider five patterns of target market selection. These are: Single-Segment Market Concentration, and Selective Market Specialization, Product Specialization, Specialization Full

Coverage. In this case, its product is money transfer and its target market is several different market segments. So the pattern of target market selection of this company is Product Specialization. All classes of people are its target market.

Product Specialization M1 P1 P2 P3 M2 M3

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Positioning Positioning is the act of designing the companys offer and image to occupy a distinctive place in the mind of the target market. Its target market is all classes of people but it can position of middle and lower class people. Because it is very easy to money transfer through S A Paribahan. Customers go to the branch; they give money and the desired destination, receivers name, mobile number and take a memo. On the other side, receiver goes to the branch, proves his mobile number and takes the money. So the process is so easy. Customers do not face any critical process. The lot size of its product is various types and price is reasonable. For this reason, middle and lower class people prefer more. Product The product is money transfer. The lot size of this product is Tk1,000 Tk5,000; more than Tk5,000 Tk40,000; more than Tk40,000 any amount. For urgent send, this company sends money through T.T which is minimum Tk50 and maximum Tk100,000. Price For Tk1,000 Tk5,000, this company charges Tk15 per thousand. For more than Tk5,000 Tk40,000, this company charges Tk10 per thousand. For more than Tk40,000 any amount, this company charges Tk8 per thousand. It charges Tk50 for any amount of T.T. Place When customers go to any branch, give it receiver mobile number and money for sending their desired destination, the branch sends a memo to the desired destination and after 24 hours that branch calls to receiver for collecting money. On the other hand, all branches send memos and money to the head branch and according to memos the head branch distributes money among the branches. For receiving and sending memos and money, they use their own transportation. For urgent send, they send information by fax. So their channels are-

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Branch Branch

Transportation

Head Branch

Transportation

Promotion The marketing communication mix consists of eight major modes of communication.

But S A Paribahan does not use all the modes of communication for its money transfer service. This company provides other services such as transportation and goods courier service as well as those is very popular. At first, people came branches for transportation and courier purpose and they knew about its money transfer service. Actually, people have known about this service by World - of - mouth marketing mode. Recently, it has arranged an advertising program which will telecast after few days. It also uses Direct marketing mode through internet.

Domestic Fund Transfer

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Business industry and members of public are in frequent need of remitting fund from one place to another for various purposes. Remittance of funds through banks eliminates the hazards in transportation of cash from one place to another for setting trade and private dues. On deposit of requisite funds and payment of the required charge, a bank undertakes to make the remitted amount available to a particular person or his order in a particular branch of the same bank or on other banks with which it may have agency arrangement. Various methods have been evolved by the banks for remittance of funds from one place to another. Generally such remittance is effected by banks in three ways, namely: (a) Bankers Draft or Demand Draft (DD), (b) Mail Transfer (MT), (c) Telegraphic Transfer (TT). In Bangladesh, most of the people live in the rural area where the banks are not able to serve the online banking system. So, for transferring money from this type of region people have to depend on TT, MT. Bankers Draft (DD) Bank Draft also called Demand Draft are equivalent to cash. Payment in drafts are free from any ambiguity. Once the drafts are issued, the purchaser no longer remains any party to the instruments. MAIL TRANSFER (MT) The Mail Transfer system is an arrangement by the banks to remit funds of the customers from one place to another through ordinary postal channel. Banks instruct their concerned branch to pay a certain amount to a specified person or to his order. This service is availed by a remitter when he desires his bank to remit the funds to the payee instead of purchasing a Draft himself. TELEGRAPHIC/ TELEX TRANSFER (TT) Sometimes people are in urgent need of remitting money from one place to another. In such cases, they prefer to remit money through Telegram/ Telex which is called Telegraphic/Telex Transfer (TT). It is an internal arrangement by the banks to remit funds through telex messages instead of postal messages.

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Place Sender Originating Bank Receivers Bank Receiver. Price For sending, 1- 25000 Tk, Charge: 69 Tk. For Sending, (25000+ x thousand) Tk, Charge: (69+x) Tk. Online Banking that System allows to

Online banking is an internet based account management service view our account balances and transaction,

transfer funds between authorized

accounts, initiate loan payments and can include bill payment services. Bangladesh Electronic Fund Transfer Network Electronic Funds Transfer (EFT) is a system of transferring money from one bank account directly to another without any paper money changing hands. EFT Credits EFT credit entries occur when an Originator initiates a transfer to move funds into a Receivers account. For example, when a corporate uses the payroll service at a bank to pay the salary of its employee each month, the corporate originates the payment through the OB to transfer the money into the account of the employee; the individual is the receiver in this example.

Some other common credit applications are: Inward Foreign remittances Domestic remittances Payroll private and government Dividends/Interest/Refunds of IPO Business to business payments (B2B) Government tax payments Government vendor payments Customerinitiated transactions

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EFT Debits In an EFT debit transaction, funds flow in the opposite direction to the information. Funds are Collected from the Receivers account and transferred to an Originators account, even though the originator initiates the entry. Some examples of EFT debit application Utility bill payments Equal Monthly Installments (EMI) Government tax payments Government license fees Insurance premium Mortgage payments

Place Originator Originating Bank BEFTN Receiving Bank Receiver. Price This is the cheapest system for transferring money in Bangladesh.

Remittance
Like many other developing countries, Bangladesh depends largely on the overseas employment market to substitute the high unemployment rate in the country. Since the 1970s, migration has been on an increasing trend in Bangladesh with exponential growth recorded in the last decade. According to official records, in 1976, 6,087 workers went abroad, while in 2008 the number peaked to 875,000 workers and in 2009, about 475,000 workers migrated through official channels. Similarly, 20

remittances, which have emerged as the highest source of foreign exchange earnings for the country, have also been growing to reach a record high of approximately $10.72 billion in FY 2009. The major destinations are to the Gulf countries Saudi Arabia, UAE, Kuwait, Qatar, Oman, Iraq, Libya, Bahrain, Iran, Lebanon and Malaysia, Singapore, Hong Kong, South Korea and Brunei. Anil Kapur, senior vice president of the US-based company's South and South East Asia operations, said Bangladesh is now a top ten remittance receiver in the world. Bangladesh financial Institution is the main legal and official source for getting the remmitance service. For providing this service financial institution has to develop a bilateral agreement with the money transfer company such as Western Union Money Transfer Services, Continental Exchange Solution (Ria Financial Services), Xpress Money Services,Trans-Fast Remittance LLC, UK based Money Transfer Companies ( AN Express Limited ,Rumana Money Services UK , UAE Exchange Centre LLC, Wall Street Exchange Centre LLC, Habib Exchange Co.LLC, Lulu International Exchange), USA based Money Transfer Companies ( Wall Street Finance LLC , US Money Exchange), K.S.A (Kingdom of Saudi Arabia) based Banking Partners ( Al Rajhi Banking Corporation , National Commercial Bank , Bank Al Bilad) ,Italy based Money Transfer Company-National Exchange srl. Target market selection Product specialization: the firm makes the certain product and that will sale to from Bangladesh as well as Non resident of

different market. Here money transfer companies are proving the remittance service to the different level of migrants Bangladeshi with the help of financial institution. Target customer: Migrant from the Bangladesh for the purpose of Job, study as well as Dual passport holders whose used to send the money to their dearest one living in Bangladesh.

Service

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Remittance services are addressed as a people base service which is subject to be intangible in the sense of money is transferring through an electronic manner. As well as it cannot be stored because when beneficiary receives money from the receiver at that time service level come to end. Price: By definition price is the payment or compensation given by one party to another in return for goods or services. Under this service sender convert the foreign currency to taka by an exchange rate given by the Bank through Money Transfer Company Such As Xpress Money. After that Bank will sale the received foreign currency to the foreign exchange market. And this difference of monetary value of receiving and selling the foreign currency price against the remittance service for the Financial Institution. As well as Financial institution have make the annual payment to the money transfer company according to the bilateral agreement in the form of dollar. in addition Exchange rate is used to expressed in the form of Price ending ( Example: USD/BDT: 85.00) as well as Price reference (Example: USD/BDT: 85.50) Marketing Channel

At first remittance sender approach to money transfer company on the basis of which bank is most nearest to his family members in Bangladesh or which money transfer

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company is offering best exchange rate. After making all negotiations with the money transfer company, sender is given the pin number which is subject to send to the beneficiary. On the other hand money Transfer Company will send all information regarding Beneficiary Name, amount of taka, Mobile number, and passport No. sender name, sender country, Beneficiary address, Bank Name and Branch. After having the pin number beneficiary will approach to bank which is elected by sender for having the money against Beneficiary pin number as well as full filling the beneficiary form. In this situation bank check the authenticity by comparing information given by money Transfer Company with information on the beneficiary form. If every thing is complying the presentation then bank officers give money to the beneficiary against it he takes the acknowledgement from the beneficiary. From the above mentioned description and Diagram we can say remittance service has to company the 2 level marketing channels for reaching to the beneficiary.

Promotion As per the online survey we have got to know most of remittance service oriented financial organization follows the Web base marketing as well as gives the information through leaflet. Some of the financial institutions have gone for TV commercial such as Dhaka Bank, BRAC Bank. As well as every financial institution use the flyer of exchange houses for informing the customers regarding particular bank is proving the remittance service through the exchange houses.

Bangladesh Post Office

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Bangladesh Post office is a government owned department dedicated to provide wide range of postal products and public services. It is the premier national postal communication service holding together a vast country with a large population. Bangladesh post office started Electronic Money Transfer Service (EMTS) on March 26, 2010. However, in response of overwhelming demand, this service has now been expanded in 2,750 post offices throughout the country including all district Head Post Offices and Upazila Post Offices. This service has got wide acceptability and popularity within a short period of time. Branches Now Bangladesh Post office is operating through 2,750 post offices to receive and send money to customers. From next June they hope to provide the service through 5000 post offices. Profit Bangladesh Post Office has earned 9 crore 23 lac taka from electronic money transfer (EMTS) on its first year operation. It has earned 37 crore taka from EMTS in its two year operation. They hope to earn 50 crore taka in this fiscal year. Market Segmentation Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs and applications for the relevant goods and services. Bangladesh Post Office also segmented its target market. The service is money transfer. Basis for segmenting consumer markets Geographic segmentation The market is segmented according to geographic criterianations, states, regions, countries, cities, neighborhoods, or zip codes. It is operating in almost all over Bangladesh. Demographic Segmentation

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Demographic segmentation consists of dividing the market into groups based on variables such as age, gender, family size, income, occupation, education, religion, race and nationality. It is targeting all the variables but in income level it is targeting the middle and low income people. Psychographic Segmentation Psychographics is the science of using psychology and demographics to better understand variables. Target Market The Bangladesh post office has targeted almost all segments of the target market. They have gone for the full market coverage. Positioning Positioning is the act of designing the companys offer and image to occupy a distinctive place in the minds of the target market. Its target market is middle and lower class people. It is very easy to transfer money through Bangladesh Post Office. Customer has to collect and fill up a small form from post office. He/she will deposit money and get a pin no. to his/her cell phone automatically. Receiver will get the pin no. from the depositor and can collect the money from any post office. Marketing mix The marketing mix is a business tool used in marketing products. The marketing mix is often crucial when determining a product or brand's unique selling point and is often synonymous with the four Ps: product, price, promotion, and place. Product/Service The service is money transfer. Bangladesh post office is very sincere to deliver customers money to their desired destination. Customers also prefer to transfer or receive money through it because it is reasonable and safe. consumers. Psychographic segmentation: consumers are divided according to their lifestyle, personality, values. It is considering all the psychographic

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Price For initial 1,000 taka it charges 27 taka and later for every 1000 taka it charges 10 taka. It is cheaper than other courier services. For example, to send 5000 taka Bangladesh Post Office(BPO) charges 67 taka, BRAC bank Bikash charges 100 tk and S A paribahan charges 70 tk. Place The service is available to 2,750 post offices throughout the country including all district Head Post Offices and Upazila Post Offices. Almost all the customers can go to their nearest post office and send or receive money easily. From next June it is aiming to deliver the service from more 5000 post office. Promotion Bangladesh Post Office does not use any promotional activities for its money transfer services. The government does not provide any budget for promotional activities. They have to depend on existing customer and their positive words of mouth towards the service to attract new customers. They are getting good and positive response from their customers.

Recommendations
Remittance and Postal Service as a international money transfer system which is considered as legal method as well as it has substantial impact on the Balance of trade payment resulting GDP growth. So this realization should be built at the mind of citizen of Bangladesh as well NRB and it becomes possible by avoiding all illegal method for sending and receiving money . In this situation Financial institution should enchaining knowledge level of consumers by informing them its importance by adopting any communication mix. As an domestic money transfer system such as, bkash, Bankers Draft or Demand Draft (DD), Mail Transfer (MT), Telegraphic Transfer, EFTN are also important for having the information regarding circulation money in the economy. Under this category respective company must have employees with well understand about service for bring the smoothness in the flow of service. Since these all is legal way to money transfer so here promotion should be focused on the creating awareness to follow the legal method. Now-a-days S A Parabahn is getting 26

the popularity but money transfer through this system has doest have any official impact on the GDP growth so it should take the legal permission fro the government. Reference

1.http://www.prweb.com/releases/money/bangladesh/prweb9100674.htm 2.http://www.dhakainternet.com/2012/01/26/banglalink-initiates-money-transferservice/ 3.http://www.brac.net/node/998#.UDx8ZcEgcqM

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