Professional Documents
Culture Documents
Assignment Topic
Marketing Mix (4 Ps) Analysis and Competitors Evaluation: A study on Grameenphone Company Ltd
Course Instructor
Mr. Hamidul Islam
Letter of Transmittal
Date: 02 August 2010 Md. Hamidul Islam Course Instructor Principles of Marketing Dear Sir, It gives ours immense pleasure to submit a report on Grameenphone. This report is submitted as a partial fulfillment as a part of our course. The preparation of the report has given ours and insightful experience and in-depth knowledge on Grameenphone Company in Bangladesh. We have given our best effort to make it a worthy one and each aspect of the problem is considered and studied as required. If any confusion arises or further explanation is needed, we shall be available to explain the matter to you as and when required despite when required despite having limitations. Your benign and authoritative advice will encourage us to conduct further flawless research in future. Yours sincerely, BRIGHT COSTA ID: 09-14293-2
ACKNOWLEDGEMENT
This marketing plan is prepared on the basis of the assignment given by Md. Hamidul Islam, lecturer of the American international university of Bangladesh. While preparing the report, We acknowledgement the encouragement and full guidance given by my course instructor .without his relentless support, it would have been impossible to conduct this study. We express my gratitude to our instructor for providing us detailed feedback and technical assistance on the report. Besides, a number of people and institutions are to be thanked
Chapter 1: Introduction
Company Overview
Grameenphone (), widely known as GP, is the leading telecommunications service provider in Bangladesh . With more than 20 million subscribers (as of June 2008), Grameenphone is the largest cellular operator in the country. It is a joint venture enterprise between Telenor and Grameen Telecom Corporation, a non-profit sister concern of the internationally acclaimed microfinance organization and community development bank Grameen Bank. Telenor, the largest telecommunications company in Norway, owns 55.8% shares of Grameenphone, Grameen Telecom owns 34.2% and the remaining 10% is publicly held. Grameenphone was the first company to introduce GSM technology in Bangladesh. It also established the first 24-hour Call Center to support its subscribers. With the slogan Stay Close, stated goal of Grameenphone is to provide affordable telephony to the entire population of Bangladesh.
History
The idea of providing wider mobile phone access to rural areas was originally conceived by Iqbal Quadir, who is currently the founder and director of the Legatum Center for Development and Entrepreneurship at MIT.\He was inspired by the Grameen Bank microcredit model and envisioned a business model where a cell phone can serve as a source of income. After leaving his job as an investment banker in the United States, Quadir traveled back to Bangladesh, after meeting and successfully raising money from New York based investor and philanthropist Joshua Mailman, and worked for three years gaining support from various organizations including Nobel Peace Prize laureate Muhammad Yunus of Grameen Bank and the Norwegian telephone company, Telenor. He was finally successful in forming a consortium with Telenor and Grameen Bank to establish Grameenphone. Quadir remained a shareholder of Grameenphone until 2004. Grameenphone received a license for cellular phone operation in Bangladesh from the Ministry of Posts and Telecommunications on November 28, 1996. Grameenphone started operations on March 26, 1997, the Independence Day in Bangladesh. Grameenphone originally offered a mobile-to-mobile connectivity (widely known as GPGP connection), which created a lot of enthusiasm among the users. It became the first operator to reach the million subscriber milestone as well as ten million subscriber milestone in Bangladesh
November 28, 1996: Grameenphone Ltd. received cellular license by the Ministry of Posts and Telecommunications of Bangladesh. March 26, 1997: Grameenphone launched its service on the Independence Day of Bangladesh. June 1998: Grameenphone started its services in Chittagong, the second largest city and the port city of Bangladesh. Cell to cell coverage between Dhaka-Chittagong was established. 1999: Grameenphone started its service in Khulna, the industrial city of Bangladesh. Also cell to cell coverage between Dhaka and Khulna brought a number of other districts under coverage. 2000: Grameenphone started its services in Rajshahi, the education city of Bangladesh. Service also started in Sylhet and Barisal and thus all six divisional headquarters got the cellular network coverage for the first time Bangladesh. August 2003: Grameenphone's subscribes base has become more than one million. Grameenphone became the first operator in the country to reach the million subscribers. November 2005: Grameenphone registered more than 5 million subscribers. November 5, 2006: Grameenphone crosses the 10 million subscriber mark after almost ten years of operation. September 20, 2007: Grameenphone reaches 15 million subscribers mark. June 2008: Grameenphone reaches 20 million subscribers landmark.
Vertical logo:
Horizontal logo:
Company Vision
Company mission
The vision will be achieved by 1) 2) 3) 4) 5) connecting Bangladesh with ease and care being user-friendly providing value for money providing simple and timely connections having a right understandable process
Specific objective
The objective of this study is to have a clear idea of grameenphone and to find the limitations of the tasks carried out all sector of the grameenphone. A) B) C) D) E) F) To find the business portfolio of GP. To know the marketing strategy of GP. Know the price of GP products Communications process Distributions system Last year products performance.
Observations:
When we visited the Gulshan office of GP that time we used our own observation to collect certain pieces of information about their product marketing strategy,new product performance as well as up coming product.
Secondary information:
Secondary information has collected by reviewing websites and some articles printed time to time and other relevant documents.
Secondary:
Secondary information sources had also used to collect information. Sources include: -Different articles, index of GP. -Visiting website of Grameenphone official company.
Product
Marketing Mix Product means the goods and services combination the company effect that offers to the target market for attention, acquisition, use, or consumption that might satisfy a want or need. Price is the amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.
Price
Place
Place includes company activities that make the product available to target consumers.
Promotion
Promotion means activities that communicate the merits of the product and persuade target customer to buy it.
Standardized Product
Standardized Product also has been divided into two types: Pre-Paid and Post-Paid.
Pre-Paid
The brand name of prepaid products is Smile Prepaid Standard and Smile (Mobile to Mobile). Smile (Prepaid Standard)
Shohoj Package Aapon Package Bondhu Package
Smile Standard prepaid allows consumers to make and receive ISD and NWD call in all telecom operators. Smile (Mobile to Mobile)
Smile Mobile to Mobile allows its consumers to make and receive call from any mobile
Postpaid
Xplore
Xplore is the brand name of post paid product of Grameenphone. It is categorized in two types: Xplore Package 1 and Xplore Package 2. Both of these Post-paid products has BTTB (Local, NWD, ISD and Economy ISD) connectivity, Flexible Credit Policy, Wide collection of value added service (SMS, EDGE, Welcome Tune, Voice Mail, Voice SMS) and International Roaming facility.
Customized Product
Business Solution is provided as a customized service to different medium and large organization and Professionals. This customization allows interesting call and sms charge among the member of the organization, fax and internet service within the organization branch. The customized service of one organization is never told to other or disclosed. Separate Strategic Business Unit (SBU) is responsible for the success of each of this product. As the way, this organization has proved that SBU is important for the success of a product in its market. Interestingly d-juice, which is claimed as a life style brand of Grameenphone, is not mentioned with this product line.
Different types of value added services are provided with these products as product feature.
Value Added Services With Grameenphones VAS, consumer can use mobile phone for many other purposes than making voice calls. With Grameenphones VAS, consumer can use mobile phone to:
Send and receive text messages, picture messages, voice messages Download ring tones, logos, wallpapers Obtain news updates, cricket score updates Browse the Internet and also send and receive e-mails Transfer data and send fax Participate in competitions and vote for opinions Health line services.
Branding The name or names that identify a companys products can be very important in positioning them. The brand name distinguishes a product from competitors products. A strong brand identity creates major competitive advantages. A brand that is recognized by buyers encourages repeat purchases. Grameenphone is successful in its products branding. All most every prepaid mobile phone user is aware about its Smile prepaid package and business consumers are aware about Business Solution. This Branding images comes from good quality of Grameenphones products as well as its high promotion activities. Corporate branding places primary emphasis on building brand identity using the corporate name. Grameenphone has become a corporate name in telecommunication business in Bangladesh. Corporate branding offers the advantage of using one advertising and sales promotion program to support all of the firms products. And it is often
found in Grameenphone advertisements. Corporate branding has become a branding strategy because the product offering is relatively narrow in telecommunication business. Grameenphones Strategic Analysis of Existing Products Grameenphone regularly evaluates the performance of its product. This evaluation of the performance of the product portfolio provides its management with diagnostic information to guide its strategies for new products, product modification, and product elimination. But the strategic analysis of existing products requires tracking the performance of the products in the portfolio, as shown below:
For tracking product performance Grameenphones management first establish the criteria and levels of performance for gauging product performance. These include both financial and non financial factors. Because of the various demand and cost interrelationships among products, an information system is established to measure how well a particular product is doing. The purpose of this tracking system is to maintain a product review process that will help to spot problem products or products features. Grameenphones management uses the diagnosis to help select a strategy for eliminating the problem. Action includes adding new products, cost reduction, product improvement, marketing strategy alteration or product elimination. Product life cycle analysis
The length of product life cycle is shorter in telecommunication business. So in a few years Grameenphones products moved from its introduction in to the growth stage and it is now in maturity stage. This first movement through the product life cycle
also creates the need to alter the cycle by introducing new products or products feature. Product portfolio analysis
Grameenphones strategic analysis of the products portfolio determines if each product is measuring up to managements minimum performance criteria, and assesses the strength and weaknesses of the product relative to other products in the portfolio. Portfolio grids highlight differences among products. After identifying the relative attractiveness and business strength of the products in the portfolio, a more comprehensive analysis of specific performance factors may be appropriate, including: Profit contribution. Barriers to entry. Sales fluctuations. Extent of capacity utilization Responsiveness of sales to prices, promotional activities, service levels, and other influences. The nature of technology (maturity, volatility, and complexity). Alternative production and process opportunities.
Several of these factors are included in the grid analysis when composite grid dimensions are used. Grameenphones Strategy for existing products Cost reduction, product alteration, product elimination works as a strategy for existing products within this organization. Cost reduction
Grameenphones lower cost comparatively its higher class products quality give this company major advantage over the competition. Grameenphones technological innovation, marketing productivity and high volume consumer helps to maintain this lower cost. Product alteration
Products are often improved by changing their features and quality. A number of features are included with Grameenphones products. And these features provide a way of differentiating a brand against competition. In November, 2006 Grameenphone renamed its products as Easy to Smile; Regular to Explore. A number of new features also have been added with these products in that time. But consumers preferences suggest that quality is more important than features in the choice of taking connection. So quality improvements are also considered as an important strategy for increasing competitive advantage. Product elimination
In deciding to drop a product from product line, Grameenphones management considers variety of performance criteria in addition to the products sales and product priorities. In November, 2006 Grameenphone eliminates some of its products from product line such as Any Time-300, Any Time-450 and Any Time-500. But product elimination is a very important decision that is thoroughly evaluated by Grameenphones management. Because Grameenphones core value is Make it easy. Those similar type of products confused customer. There fore these have been eliminated so that consumers feel easy to use Grameenphones products. Grameenphones corporate culture committed to provide good quality services .It believes that quality improvement is an organizational responsibility. So this will continuingly introduce good quality services or product comparatively minimum price.
It is the percentage change in the quantity demanded when price changes, divided by the percentage change in the price. GP has gained high price elasticity in the market.
Non-price factors:
The Gold holders pay a high amount of money in buying to get the high facility. Cost Analysis:
Product cost provides essential information for pricing decisions. To analyze cost, GP uses the following steps:
Competitor Analysis:
Aktel is the major competitor of GP as it is consistent in its rates and facilities and gain a most part of the market shares although Banglalink has more promotional activities and call charge, they have not been able to hold the market yet. GP fixes its competitor on the basis of market share. They fix price in keeping pace with the competitors price and their probable responses to an alternative price strategies.
XPLORE PACKAGE 1
GP-GP
Any Mobile
F&F
BTTB (local/NWD/ISD)
SMS Charge
12 pm-4 pm TK 0.49/min
Line Rent: Tk.50/month (This fee too will be waived if the subscribers' monthly airtime usage exceeds BDT 450) BTCL Incoming is absolutely free for Xplore :
1 sec pulse from 1st minute onwards for all numbers except F&F 60 sec pulse from 1st minute onwards for F&F NWD calls: BTCL's Peak (8am - 10pm) & Off-peak (10pm - 8am) rate will be applicable for BTCL charge All figures are excluding VAT. 15% VAT will be applicable.
XPLORE PACKAGE 2:
Package 2 has come up with a very attractive and competitive tariff. BTTB Incoming is absolutely free for xplore Package 2. No Monthly Access Fee/Monthly Line Rent Monthly Package Fee (Minimum Usage): Tk.1000
F&F
BTTB (local/NWD/ISD)
SMS Charge
Aapon Package: You will be able to talk to over 23 million Grameenphone numbers at a low rate. The package offers the following features: Time Morning Time: (8 am-12pm) Day Time: (12pm-4pm) Evening Time: (4pm-12 am) GP-GP Tk. 1.25/min Tk. 0.49/min Tk. 1.25/min GP-Other Operators Tk. 1.49/min Tk. 1.49/min Tk. 1.49/min
Voice call
Night time (12am-8 am) 3 FnF (Voice call) 24 Hours SMS SMS (FnF)
This package gives you the privilege of calling 3 FnF numbers at Tk 0.49 and sending SMS at Tk 0.5 ( GP-GP, GP-other operator at Tk 1/SMS) Bondhu Package: This package with the highest number of F&Fs allows you to talk to your near and dear ones at the lowest rate. This package gives you the privilege of calling 7 FnF numbers at Tk 0.49/min. You can calls to all other numbers (Other than the seven FnFs) are BDT 0.99 per minute. SMS rates are BDT 0.50 per SMS to FnF numbers and BDT 1 to other GP-GP and other operator numbers. Time 24 Hours 24 Hours GP-GP Tk. 0.49/min Tk. 0.99/min Tk. 1.00/SMS Tk. 0.50/SMS GP-Other Operators Not Applicable Tk. 0.99/min Tk. 1.00/SMS Not Applicable
International SMS:
Any GP user can send SMS to more than 100 million GSM subscribers all over the world. It costs much less than making a call and is quite convenient to send. Tariff: Product Smile Smile PSTN Post paid djuice djuice BDT 1.50 BDT 1.50 BDT 1.50 BDT 0.50 On-Net BDT 1.50 BDT 1.50 BDT 1.50 BDT 1.00 Off-Net BDT 2.00 BDT 2.00 BDT 2.00 BDT 1.50 International SMS BDT 2.00 BDT 2.00 BDT 2.00 BDT 2.00
News service: GP provides news and sports update. Tariff: BDT 2.0 MP3 tones
Grameenphone EDGE
Grameenphone offers EDGE (Enhanced Data Rates for Global Evolution), an advanced mobile technology which enables high-speed mobile Internet and data services. It is about 8 times faster than GPRS.
Tariff Structure
PACKAGE 1 PACKAGE 2
Pricing: The following table shows price of different contents offered by GP: Contents 1 2 3 4 5 6 7 Poly tones True tones Wallpaper Animation Color Logo J2ME Games Video Clips Price (in BDT) 15 20 10 10 10 40 30
Themes
20
To perform the above task effectively GP uses its own distribution channels, which are distinguishable from others. When initially selecting a channel of distribution for a new product, the pricing strategy and desired positioning of the product may influence the choice of the channel. Once the channel of distribution design is complete and responsibilities for performing the various marketing functions are assigned, these decisions establish guidelines for pricing, advertising and personal selling strategies. GP is very much efficient in establishing these types of strategies. It helps them to maintain an exclusive distribution channel to serve the end-users.
GP has not come to its present situation instantly. Various types of changes incurred during the years of its business. We will see the different channels at different time period one by one.
From the beginning of the business of GP, it supplied its SIM to the distribution centers. Dealers got the product from the centers and sold those to retailers. The retailers, at last, sold the product to end users. This was a traditional channel. Sometimes, end-users purchased products from dealers as a whole to minimize the purchasing cost. Company did not sell directly to the customers at that time. Only three years ago GP introduced a new and convenient channels of distribution to overcome the traditional system. The two tails of the channel is the most attraction part to the customers. Through around 30 distribution centers, GP distributes all key parts of the country. Dealers, as an intermediary, purchase the products from the centers and disburse those to two types of retailers. One is exclusive retail outlet and another one is non-exclusive retail outlets are permitted to sell the products of only GP. They are the guaranteed or
authorized retailers. Non-exclusive retail outlets can sell other companies product as well as they have no relation the customers or end-users buy products from either of two types of retail outlets. They get the product or service of company in the most convenient way at the student time period.
tools to give message for its customers on the new product & existing product and product features. Grameenphone must do more than make good product- they have to inform customers about product benefits and carefully position products in consumers mind. To do this Grameenphone promotes the promotion tools are:
Advertising
Sales Promotion
Public Relation
Publications Events News Sponsorships Public service activities Identity Media
Price packs Cash Refund Offers Prizes Patronage Award Premium Price Offs
Grameenphone Advertising process : Any paid form of nonperson presentation and promotion of ideas, goods or services by an identified sponsor. Grameenphone advertising can introduce the company and the products. If the product embodies new features, advertising can explain them. Advertising can remind customers of how to use the products and reassures them about their purchase.
Grameenphone uses advertising as a promotional tool to make a communication task to be accomplished with a specific target audience during a specific period of time.
Persuasive Advertising
Building brand preference Encouraging switching to Grameenphone Changing customers perception of product attributes Persuading customer to purchase now Persuading customer to receive a sales call
Reminder Advertising
Reminding consumer that the product may be needed in the near future Reminding consumer where to buy it
Grameenphone uses different types of media to acquire different types of objectives. To select media depend on the target audience, product characteristics, message characteristics and cost. The advertising tools that grameenphone uses as a media to communicate with the existing and potential customers are:
o Newspapers
Newspaper covers all sorts of information about grameenphones product. It mainly covers the informative and reminder advertising.
Cost Lower
o Television
Television is an effective media for good mass-market coverage. Television telecasts messages about new product and it is mostly used for persuasive advertisement.
Message characteristics Duration High attention, high reach, high Long life clutter
Cost High
o Radio
Within a lower cost, grameenphone broadcast their massage through radio. It is a better way for persuasive advertisement.
Message characteristics Duration Audio presentation only but usage Relatively mass and cover high geographical area. short life
Cost Lower
o Magazines
An effective media that grameenphone uses as a promotional tool to achieve the customers awareness about grameenphone and its product. It is an effective media for informative and persuasive advertisement.
Message characteristics Duration High-quality reproduction, credibility long life and prestige.
Cost Medium
o Newsletters
Grameenphone publishes newsletter regularly to inform existing customer as well as potential customer about companys recent activities and offer. Target audience Loyal consumers and interest persons Message characteristics Very high selectivity, full control. Duration Short life Cost Relatively low cost
o Internet
Internet performs effective promotional tools grameenphone advertising. It gathers all sort of information about grameenphone.
Grameenphone uses sales promotions that consist of a diverse collection of incentive tools, mostly short term, designed to simulate quicker or greater purchase of particular products or service by consumers or the trade.
Sales promotion tools vary on their specific objectives. Grameenphone uses sales promotion to acquire broader promotion objectives:
For retailers
Persuading retailers to carry new items Encouraging stocking of related items Offsetting competitive promotions Building brand loyalty Gaining entry into new retailers outlets
Many tools can used to accomplish sales promotion objectives. Describes of the main consumer, trade and business tools that grameenphone uses as short-term incentives to encourages the purchase the product follow:
o Price-packs: Nokia handset festival @ GPCs Grameenphone Ltd. kicked off the first handset bundled promotion at its
Grameenphone Centers around the country. Under this promotion free GP connections and bonus talk time, Tk.660 to Tk.2000 depending on handset, are being offered with select popular Nokia models.
o Cash Refund Offers: thankyou thankyou is grameenphone way of expressing their gratitude, because not only has
consumer loyalty touched us but has also made grameenphone the preferred mobile operator. Grameenphone thankyou program provides consumer with a number of rewards that will make consumer mobile phone experience with gramophone even more satisfying.
o Prizes: grameenphone pothe pothe utchob Grameenphones mobile transport travels all around the country and arranges
different types of amusing game/contest for their loyal customers and offers attractive prizes who win the game /contest.
o Patronage Awards:
thankyou crown, Be Special, Be crown Grameenphone offers the prestigious thankyou crown membership to especially cater
to you. To enrich your life, grameenphone offers premium services and exclusive discounts.
Average Monthly Usage Over Last Six Months BDT 6500 and above BDT 4500 to below BDT 6500 BDT 2500 to below BDT 4500
You will also enjoy exceptional service at all our customer touch-points. Just introduce take care of yourself with your Grameenphone number and put your feet up! We will your problem while you relax.
Premium:
Enjoy free stuffs with a new xplore Package2 connection With every new xplore Package 2 connection, you will get 25 Text SMSs & 25 free
Voice SMSs, and 5 GP branded Ring tones. Subscriber has to use the free content and VAS within 2 months after activation.
Price-Off:
Public relation is one of the grameenphone strategic promotion tools building good relations with the companys various publics by obtaining favorable publicity, building up a good corporate image.
Grameenphone public relation uses several tools. The tools are following:
Publications:
Grameenphone published some sorts of materials to reach and influence their target market. Some publication materials are: Annual report Articles Grameenphone Newsletter
o Events:
Grameenphone arranges some special event to draw attention to new products or companies activities. Some special events that grameenphone arranges frequently: Seminar Conference Trade shows
Sponsorship:
Grameenphone promote their brands and corporate name by sponsoring sport and cultural events and highly regarded causes. Some current sponsorship by grameenphone are: Grameenphone sponsors International Conference on ICT Official sponsor of Bangladesh Cricket Grameenphone sponsor International Trade Fair in Khulna
News:
Grameenphone finds or creates favorable news about the company, its product and its people and get the media to accept press release and attend press conference. Grameenphone in its official website media site covers all news about grameenphone, its product and its people.
Public-Service Activities:
Grameenphone has always been more than just a mobile phone service provider in Bangladesh. It builds goodwill by contributing money and time to good causes. Public service activities that performed by grameenphone are:
Samorita Hospital offers 25% off on screening test. Japan Bangladesh Friendship Hospital offers 50% off on screening
Alo, a leading daily newspaper in Bangladesh, organized a program titled Prothom Alo-Grameenphone Shommanona 2006. The aim of this program was to bring the little-known development practitioners to the limelight creating inspiration and confidence for others.
o Identify Media:
Grameenphone creates a good image by using promotional tools. Grameenphone promotes the public relationship by its attractive logo, signs, uniform and others.
Grameenphone personal selling is a good way to communicate the target customers. It focuses on more creative types of selling and the processes of building and managing an effective sale forces.
Personal selling serves as the grameenphones personal link to customer. The sales representative is the grameenphone to many of its customers. Personal selling performs for establish some objectives. Those are: