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Internship Report On Banglalink - Comparing The Brand Image of Banglalink Against The Other Mobile Phone Companies
Internship Report On Banglalink - Comparing The Brand Image of Banglalink Against The Other Mobile Phone Companies
1.0 INTRODUCTION
1.1 Introduction
Much of the world has, at best, limited access to basic telephone service. Bangladesh is no
exception to this rule. A brief survey of the telecommunications sector in Bangladesh (PBC)
shows that in Bangladesh, which ranks among the most densely populated countries on the
globe, one telephone serves 275 people, equating to one of the lowest teledensity measures
worldwide. Of the total telephone count in Bangladesh, approximately 20 percent serve the
rural areas. The need for telecommunications sector investment and growth is obvious. This
is especially so if Bangladesh intends to participate and coexist economically and socially in
a larger information-intensive world.
There were only 3,000 users when mobile phone was an expensive personal gadget of the
society's affluent segment. Competition was introduced in 1996. Since then mobile phone
gradually became a general-purpose communication tool and today it boasts of 6.25 million
users representing a 132 percent compound annual growth rate. It is predicted that there will
be around 10 million mobile subscribers in the country by 2006.
Middle to higher income citizens has been dominating the mobile customers. Lately the lower
income group started joining the club. It was fuelled after Banglalink rocked the market by
bundling subscription and handset at Tk1, 500 only. Later people became more excited after
the launching of Teletalk.
Comparing the Brand Image of Banglalink against the other Mobile Phone Companies
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AKTEL stunned the market introducing one-second pulse. GP made history with launching
EDGE, the very first step towards third generation mobile phone. City Cell's free handset
offer coincided with Sing Tel's acquiring this CDMA operator last week. Graph of our mobile
phone market's growth was to take the shape of a "Hockey-stick" by this year.
Banglalink was the last addition to the GSM family of OTH. In September 2004, OTH
acquired a mobile services company, Shebatel in Bangladesh with a nationwide GSM license
valid until 2011. Since then, OTH has installed new management, upgraded the network and
re-branded the company as Banglalink. Banglalink has rapidly deployed new network
infrastructure, set up a distribution network and points of sale, and designed complete
commercial plans to offer high quality voice and data telecommunications services at
competitive prices to the people of Bangladesh. It is also worth mentioning that an
unprecedented success of sales results followed the Commercial launch of Banglalink on the
10th of Feb 05.
The mobile phone market is a part of the consumer service industry. Banglalink, like any
other successful company dealing with consumer commodity, has to keep a continual tap with
the prevailing and potential subscribers. Due to this reason, Banglalink has to undertake
intensive branding activities to facilitate the attainment of short-term organizational goals and
long-term objectives.
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Despite the slow development of telecom services in the past, improved commitment,
guaranteed funding and entering of new and powerful organizations both in and outside of the
country gives the hope that the ongoing telecommunications projects will be successful and
the overall telephone infrastructure of Bangladesh will grow stronger.
The mobile phone customers in Bangladesh have been happier than before at present because
they have more choices regarding service providers at present. The market was dominated by
only three networksGP, Citycell and Aktel till end 2004 when another major player entered
the mobile industry. The market leader certainly sees the threat of new entrants not much of
threat because of the steep learning curve, established customer base, efficient distribution
model and strong brand presence etc. But the question arises whether this is enough to stop
the redistribution of the market share for mobile phone operators
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2.2 History
Bangladesh Telecom Limited (BTL) has obtained the license as the first company of the
country to operate cellular, paging, and other wireless communication networks in 1989 and
it turned into Hutchison Bangladesh Telecom Limited and launched Bangladesh's first
cellular operation in August, 1993. And in February 1996, HBTL was renamed Pacific
Bangladesh Limited (PBTL) and launched 'Citycell Digital' to market its cellular products.
The big player GrameenPhone (GP) obtained its cellular license in November 28, 1996 and
launched its operation in March 26, 1997 and never looked back.
And after that another Malaysia-Bangladesh joint venture Sheba Telecom (Pvt) Limited
launched its operation in 1998. But failing to come of the competitive edge, Sheba Telecom
formally sold its cent percent shares to Egyptian telecom giant Orascom and Orascom
formally launched its operation under new brand name Banglalink in February 10, 2005 and
shook the market with its inaugural package.
Though the much-talked about state owned company Teletalk Bangladesh Limited (TBL), the
mobile unit of BTTB was formed on December 26, 2004 and Prime Minister Begum Khaleda
Zia inaugurated Teletalk Mobile Service on December 29, 2004, but it formally launched its
mobile telecom service on commercial basis on March 31, 2005.
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Dhaka
62
Rajshahi
10
Chittagong
15
Khulna
13
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\*
Comparing the Brand Image of Banglalink against the other Mobile Phone Companies
MERGEFORMAT
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In 1996 two new operators entered the market- GP and Sheba. Shebas service was limited to
Dhaka but GP spread its network rapidly. Today out of the 64 districts, GP serves 50 districts
in Bangladesh and its network is divided into 6 zones- Dhaka, Chittagong, Khulna, Sylhet,
Barishal, and Rajshahi. GP has two kinds of services- GP national and GP regular. GP
national provides connection with BTTB and all other mobiles throughout the country
wherever GP has its network. GP regular only connects to GP mobiles throughout the country
according to its coverage. The map below shows the network coverage of GP in Bangladesh.
According to the map, GPs network coverage is well spread out and increasing at a rapid
pace- considering the fact that GP started in 1996 (General information. n.d.).
Grameens cell phones have reached a massive number of villages. GP, funded by the
Grameen Bank (10%) and Nortel (90%), has used the optical fiber network owned by
Bangladesh Railway. The fiber optic cables were originally laid by the Bangladesh Rural
Transport Authority (BRTA) but never used. Therefore Grameen Phones network has been
easily connected to any mobile users who are adjacent to Bangladesh railway tracks. The
GPs village program was started in 1997 and is providing service to people in the remote
rural areas of BD. According to statistics of October 2003, there are more than 39,000 village
phones in operation. These village phones are operating in 58 districts and in approximately
28,000 villages- providing telecom facilities to more than 50 million people in remote areas.
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Besides GP, CityCell and Sheba there was a fourth cell phone operator called Aktel. Aktel
joined Bangladeshs fast cell phone operation in 1999. Although mainly based in Dhaka, like
Banglalink, Aktel has been able to attract customers and maintain control of quality.
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operators- Instaphone, Paktel, PTML, and Mobilink. Mobilink is the major service provider
in Pakistan and controls 48 percent of mobile phone market. Pakcom or Instaphone was
integrated in 1991. Today it offers country wide coverage in all provinces. Paktel is a joint
venture company and the first one to introduce the idea of mobile in Pakistan. Mobilink
which is the largest share holder is also a join venture. Mobilink has 1 million users in major
cities and towns.
Bangladesh has a population of 130 million. Dhaka alone holds 12 million people and BTTB
has less than 0.8 million subscribers. The rate of demand has been increasing since the
inception of telephones but pending demand has been increasing for decades (BTTB history,
n.d.). However, this is not the case in cell phone sector. The Cell phone is a relatively new
concept in BD, yet cell phone operators have managed to increase their capacity- presently
there are approximately 2 million cell phone subscribers (Land phones, 2004). Pending
demand does not exist in the cell phone sector due to rapid growth. As mentioned earlier,
Grameen alone covers 50 districts of BD and has a well spread out network. BTTB has been
handicapped by inefficiency and corruption. BTTB does not work within agreed time frames.
Therefore, delay in procurement and decision making causes delays in procuring and
installing of equipment (exchanges in this case) which are the main equipment for increasing
capacity.
Revenue collection has been one of the most noticeable successes of cell phone operators in
contrast to BTTB. There is not scope for later payment or dues in the cell phone sector. If one
does not pay his bill, he will be disconnected automatically. Thus, no one gets special benefits
and as a result every subscriber is of equal importance regardless of his rank within the
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nation. On the contrary, cell phone operators have been practicing strategies to exploit
subscribers. Compared to other countries, Bangladeshs cell phone operators charge high
prices. Because they are not monitored by the government, and the fact that the demand for
cell phone connections is high and operators have given birth to new concepts such as GP to
GP and No outgoing. The first term GP to GP means that the subscriber can call only to
a cell phone but not to a land line and No Outgoing means that the user can receive
international calls but cannot make international calls.
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However, Orascom Telecom is a holding company that owns and runs several mobile GSM
networks across Egypt, the Middle East, Africa, and the Indian subcontinent. A Part of
Orascom Telecom is publicly traded on the London and Cairo Stock Exchanges and the
remainder of shares in the company is owned by the Sawiris family in Egypt.
Within five years from the date of its inception, OT established strong presence in the GSM
Association (the world's leading wireless industry representative body), represented by
Chairman and CEO Mr. Naguib Sawiris, who was selected to join the GSM Associations
CEO Board since 2003. OT will have a strong impact on the multi-billion dollar global
wireless network business, and will help guide the strategic planning for the future of the
industry in the world.
The Sawiris family, of Egypt, owns the majority stake in the company (56.9%). Orascom
Telecom Holding is a leading player in the Cairo and Alexandria Stock Exchange where it is
traded under the symbol (ORTE.CA). On the London Stock Exchange, its GDR is traded
under the symbol (ORTEq.L). OTH's IPO raised US$320 million during the year 2000, and
was the largest offering on the Egyptian Stock Market at the time
The above operational facts indicate the following market share per subs:
Country
Algeria
Brand name
Djezzy
Market Share
73.0%
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Pakistan
Mobilink
63.8%
Egypt
MobiNil
53.5%
Tunisia
Tunisiana
29.4%
Iraq
Iraqna
100.0%
Bangladesh
Banglalink
1.0%
Congo Brazzaville
Libertis
36.8%
Zimbabwe
Tel Zim
31.0%
Democratic Republic of Congo
Oasis Telecom 5.1%
Table 3 Orascom's market share per subs
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As Sheba Telecom, the worst performing network operator in the industry, the company had
only 30,000 subscribers. To dispel this image, OTH had re-branded Sheba as Banglalink in
an attempt to give it a completely new image.
With that kind of a reputation at its disposition, the Banglalink management has placed one
of the highest priorities on improving its network. In this respect, they have installed state-ofthe-art equipment from Siemens and Huawei and brought in over 1,000 people, including
experts, from 15 countries around the world to set up the required infrastructure. The system
took a record of four months (less than half the normal time) to build. In 2005 alone,
Orascom plans to invest $120 million, earmarking close to another $300 million for future
investments.
While Banglalink started out quite small, it has increased its coverage from 9 to 23 districts
in just over three months. The company plans to provide mobile communication coverage to
all the 61 districts of the country and its major highways by the end of the year. Moreover, in
less than only four months, it now has more than 400,000 subscribers from a mere 30,000 in
February before the launch.
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1.
Sales
2.
Marketing
3.
Human Resources
4.
Customer Care
5.
IT & Billing
6.
Administration
7.
Finance
8.
Technical
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Management Team
Chief Executive Officer
Lars P. Reichelt
Chief Commercial Officer
Mehboob Chowdhury
Chief Information Officer
Ramzi Chmaitilly
Chief Financial Officer
Ezzeldin M. Heikal
Chief Technical Officer
Moustafa Aly Ghidan
Director Marketing
Omer Rashid
Director Sales
Hassan Samy
Chief of Human Resources
Mohamed Ahmed Allam
Table 4 Top Management of Banglalink
In September 2004, OTH purchased 100% of Sheba Telecom in Bangladesh for US$ 60
million, and re-branded the company as Banglalink. Bangladesh is an extremely attractive
market due to its large and highly concentrated population of 140 million, low mobile
penetration of 2.5% and high growth of mobile subscribers. Banglalink launched its prepaid
services in February 2005 in nine major cities and expects to invest over US$ 200 million in
expanding its network coverage and capacity. Banglalink started its aggressive plans by
quickly expanding its GSM network to provide high quality communications services at
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affordable prices. In just under five months, Banglalink launched its prepaid services in nine
cities.
Mission
"Banglalink understands people's needs best and will create and deliver appropriate
communication services to improve people's life and make it easier"
Vision
Banglalink aims to understand peoples' needs best and develop appropriate communication
services to improve peoples' life and make it simple. All our work is aimed towards meeting
our vision. All members of the Banglalink family are highly passionate individuals, fully
committed to achieving the vision that we have set ourselves. Our customers' needs matter
most to us- making their life simple and improving it is all we want.
To ensure their vision is achieved, we have set ourselves a few values, we want to be:
Straight Forward
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Reliable
Innovative
Passionate
Objective:
All the Banglalink family members have one thing in common-A passion to serve.
They want to go that extra mile, so that people can have the best possible service investing in
the future of Bangladesh
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3.6.2
Weaknesses
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Network: The greatest weakness of Banglalink and also the most widely criticized service
is its network. While the reception is quite clear when the user is out of doors, once inside,
the reception breaks up.
The worst part is the company has entered a market where the industry leader has been
reigning supreme for years now and people are bound to compare the leaders services with
Banglalinks performance, even if it is fairly new to the market. People tend to forget that it
had taken the leader more than three years since its start to provide its subscribers with a
decent connection; hence it is with Grameens present performance that Banglalink is
compared and sure enough the latter does not fare well.
Unorganized structure: OTH bought off Sheba (Pvt.) Limited last September and
immediately started changing the structure of the loosing concern. They are constantly
recruiting people, adding/deleting levels to the organogram. Thus, the environment is
constantly chaotic, with many people not knowing who to contact or whom to report to and
who is responsible for what. This takes away time and energy away from the selling
activities.
Inadequate human resources: While many people drop off their CVs at the office on a
regular basis, finding sufficient numbers of people, with the correct qualifications, has
become hard to find. Hence, a handful of people are doing the work of many leading to back
log of work.
Bureaucracy: The new management is trying to create a system where each individual is
responsible and accountable for his duties. While it is a good idea, it has also created a
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bottleneck at the administrative & financial level, where work gets stuck and stays stuck until
all papers are properly signed and taken care of.
3.6.3 Opportunities
Re-invent itself: As mentioned earlier, the company created a strong buzz when it entered the
market. Previously an unknown entity, many people now know of the existence of Orascom
Telecom. They have done their studies and know that OTH stands for success. Thus, the
people are ready to see Banglalink as a total different entity from its predecessor and are
willing to give it another chance to re-invent its image in the market; not an issue to be taken
lightly by the company.
3.6.4 Threats
Price wars: While in the true sense it had been Banglalink who started this price war with
its M2M package, it has created a series of price cuts that many cannot afford. After eight
years of high call charges, Grameen has finally decreased its rates.
BTTB has also entered this battle with Teletalk Bangladesh Limited. With free T&T
incoming and outgoing, this is sure to become popular once it gains access to other operators
networks.
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Organizations are using branding as a strategy tool in today's business environment with
increasing regularity. Although brands and branding are not new ideas, firms are applying
them to more diverse settings where the role of branding is becoming increasingly important
(Wentz and Suchard, 1993). The traditional role for brands is also experiencing rejuvenated
interest. Market analysts generally agree that this trend will continue and be part of a formula
for successful firms in the future (Norris, 1992).
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Ginden, 1993
A brand as something the customer knows and will react to, and this image will
influence the perceived worth of the product and will increase the brand's value to the
customer, leading to brand loyalty
-
Cleary, 1981
Brands can also reduce the risk a consumer face when buying something that they
know little about
-
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new products failed strengthened the argument that takeovers made more sense than trying to
develop new successful brands (Dagnoli, 1990; The Economist, 1988).
It was during this period that many brands began to suffer. With the changing management
associated with takeovers and acquisitions, brands failed to maintain a clear image in the
consumer's mind. Consumers were becoming confused about what a brand represented. Some
feel that brands themselves are doomed because of years of inconsistent advertising and
agency management, generic marketing, look-alike advertisements, indistinctive products,
and the proliferation of promotions (Liesse, 1990; Wentz, 1993).
The strategy of the 1980s has influenced, but not dominated, the strategy for the 1990s. Firms
are beginning to realize the shortcoming of the previous decade and are changing their focus
on branding. The importance of the product itself is beginning to be emphasized. In her
article, "What's in a name", Zbytniewski (1992) writes: "95% of consumers buy with their
eyes. It's what's underneath the label that matters. The label is secondary (p. 11).
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Six-step method
Shipley and Howard (1993) suggest a six-step method for naming products that branders can
use for other products as well. It starts with setting the brand objective followed by specifying
branding criteria, generating name ideas, selecting name ideas, and finally, selecting a name.
Berry et al. (1988) have set criteria for formulating brand names. They suggest a name should
have four characteristics, including distinctiveness, relevance, exorability, and flexibility. All
products should avoid generic sounding names and should convey the essence of the product
through indirect connotations. Names should be simple, brief, and easy to pronounce and
read. They should not rely on cuteness or gimmicks and should be broad enough to change
over time. The use of geographic references and purely descriptive terms are not
recommended. Effective graphics and logos are recommended, however, to support the name.
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Brand advertising
After spending resources on naming a product, it is imperative to support it through
advertising and communication (Berry et al., 1988). For a product to succeed, the brand
owner must dedicate more resources to promoting it through advertising. O'Malley (1991)
writes that advertising is a key to sustaining appeal of brands. It is also a key to developing
that appeal in the first place. Gregory (1993) says that the first job of advertising is to build
brand awareness and corporate brand approval. Through advertising, marketers expose the
potential consumer to the brand and give them the opportunity to accept it.
Advertising should be thought of as an investment in the brand it is promoting. Just as a
company would invest in technology and innovation, it must also invest in advertising and
promotion if it is to succeed (Wentz, 1993).
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strong brands cannot rest on their success and brand owners must constantly review the
appeal of their brands to ensure that they remain contemporary and relevant. Although it has
been suggested that killing a brand leader is difficult (O'Malley, 1991; The Economist, 1988),
companies which neglect their brands increase the risk.
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4.5 Conclusion
Branding can be an effective and powerful tool for all types of business organizations. If
brand owners use their product correctly, the payoffs can be substantial. However, if brands
are mismanaged, the results can be damaging. There are many ways to ensure success with
branding. Choosing the right name, using the right advertising, applying the best strategy, and
using the most relevant application techniques are some ingredients needed to make a
branding effort successful. As stated earlier, this is not an easy function. Brand owners and
marketers must deal with the changing environment and other factors that affect their ability
to be effective.
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Frequency
40
36
30
24
17
20
10
Subscribers of
4 Companies
Subscribers of
3 Companies
Subscribers of
2 Companies
Subscribers of
1 Company
0
Subscribers
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Discussion: If this first question was asked just five years ago this it may sound very
difficult. But in the year 2005, where all the prepaid SIM cards are highly affordable to
purchase (even where the post paid connections are not that much expensive); this question
was very much relevant. With this question it has become clear that the respondents have
good amount of idea regarding which mobile company is offering which kind of services.
With the help of this answer the researcher came to know that the following questions which
will be filled up by the researcher is going to be more valid. In answering this first question
many respondents said that though they carry more than one mobile companys SIM, end of
the day they will be carrying only one SIM depending upon the service and tariff of the
mobile company. There is a rationale behind this. A strong reason behind this is to simplify
life, to get important phone calls on time. Because if the respective sample gives more than
one mobile no. to different persons he or she can miss important phone calls and also
important SMS, which will definitely disrupt others also.
Overview of Findings of Question No. 2:
Color Recall Testing
Company
Out of 80
GP
70
Aktel
30
City Cell
35
Banglalink 50
In Percentage
87.50 %
37.50 %
43.75 %
62.50 %
80
70
60
40
50
30
35
GP
Aktel
City Cell
Bangla Link
20
0
Mobile Com panies
Page - 33 -
In the second question the researcher tried to find out the color recall capability of the mobile
phone advertisements. In all the four mobile phone advertisements and in their logos and
graphics there are unique colors. Among the 80 respondents it was found that 70 respondents
could recall (out of 80) the color of GP, 30 respondents could recall the color of Aktel, 35 can
recall City Cells color and finally 50 can recall the color of Banglalink.
Discussion: Color recall testing was a very important question in finding out the brand
image. It was observed that in order to build up a strong brand image it is very much essential
to build up all the advertisements, logos and graphics upon one or more unique color. It helps
customers to easily remind that which company is giving which advertisements. At that time
it becomes easier for them to understand which company is giving the advertisement just by
seeing the color only. GPs advertisements are basically built up by the major combination of
red and green. This red and green represent the national flag of Bangladesh. Any color
combination which represents the nationalism concept generally brings a good attraction
among the population of a country. For this reason it was observed that 87.50 % respondents
were capable to catch the exact color of GO. But in case of Aktel and City Cell the color
recall test do not provide a strong color retention rate. In case of Aktel and City Cell it is
37.50 % and 43.75 % respectively. But in case of Banglalink it reaches a satisfactory point
which is 62.50 %. From the very beginning Banglalink always plays with the color of orange.
In its newsprint advertisements, television advertisements and also in other billboard
advertisements; this orange color is very much dominating. This could be a good reason why
the color retention of Banglalink is so much high. Later after the completion of each question
we will be able to find out more valid reason whey this color retention rate is satisfactory in
case of Banglalink.
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In Percentage
90.00 %
68.75 %
25.00 %
18.75 %
Responses out of 80
80
55
60
GP
Aktel
40
20
20
City Cell
15
Bangla Link
0
Name of the Com pany
In
case
of
searching
which
company has created strong brand image in the mobile phone industry slogan recall testing is
very much important. In this question respondents were asked to find out the slogan of each
company. All the four mobile companies slogan was attached with the question. Finally it
was observed that among the 80 respondents 72 respondents were able to determine the
slogan of GP, 55 respondents were correct in determining the slogan of Aktel, 20 respondents
correctly choose the slogan of City Cell and only 15 respondents out of 80 were able to
determine the slogan of Banglalink.
Discussion: Slogan recall testing help us to determine which companys media strategy in
terms of spreading strong message to the market is powerful and which one is weak. 90 %
respondents were able to determine the slogan of GP. As we have seen that in making the
color combination; GP has selected the color combination of the national flag of Bangladesh;
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GP has applied the same tactics in positioning its slogan in the broad telecommunication
market of Bangladesh. GPs slogan --- Amar Desh, Amar Ohonkar; if translated in English
in English; it becomes, --- My country, my proud; is strongly represents that GPs slogan
really build up under the nationalism concept of Bangladesh. The mass people of Bangladesh
really love this kind of nationalistic concept. 68.75 % respondents were able to determine the
slogan of Aktel. Aktels slogan --- Clearly Ahead is very much simple and easy to
pronounce. This slogan clearly indicates that the companys service is advance in nature and
they are the only one who brings all the new changes first; the other only follow them. We all
know that the mobile company is a turbulence sector; every time new updated services are
coming continuously. The slogan Clearly Ahead is really tough to maintain. In case of
City Cell, 25 % respondents were able to recall the slogan. City Cells slogan is --- Because
we care. There could be many reasons why this slogan recall rate is only 25 %, where GP
and Aktel achieved a recall rate which is more than 50 %. One important reason could be that
the slogan is tough to understand for the sample size, it could be tough to remember. In case
of recalling the slogan of Banglalink, only 15 % were able to recall it. Comparing to other
three mobile companies, this 15 % rate is definitely dissatisfactory for Banglalink.
Banglalinks slogan is --- You, First. Many respondents verbally said that they are really
confused regarding which is the exact slogan of Banglalink. Some said that they tough that
the slogan may be --- Im a Tiger. Some said that they have never heard that Banglalinks
slogan is --- You, First. Again some respondents gave comment that the slogan does not
have a clear meaning. They are confused with this slogan.
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Recall Testing
Out of 80 In Percentage
69
86.25 %
64
80.00 %
61
76.25 %
55
68.75 %
69
64
61
55
GP
Aktel
40
City Cell
Bangla Link
20
0
Mobile Com panies
Page - 37 -
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Banglalink.
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newspaper,
Companys
which
mobile
advertisement
respondents 34 said for GP, 19 said for Aktel, 12 said for City Cell and 15 said for
Banglalink.
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this
question,
among
the
80
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advertisements
get
the
most
16.
Which
companys
transport
advertisements get the most attraction?
Company
Frequency
In Percentage
GP
31
38.75
Aktel
24
30.00
City Cell
12
15.00
Banglalink
13
16.25
Table
20
Overview
of
Findings
of
Question
No.
16
Total
80
100.00 %
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In Percentage
36.25
26.25
16.25
21.25
100.00 %
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fastest
management
information
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Banglalink.
Table 28 Overview of Findings of Question No. 24
inter
network
In Percentage
45.00
18.75
17.50
18.75
100.00 %
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In order to analyze the data, frequency distribution (with the help of mean value) has been
applied. From questionnaire 5 to 25, all the questionnaires were divided into 7 phases. The
questionnaires were divided in seven phases in order to explore the brand image of
Banglalink comparing to other mobile phone companies. The seven phases were as follows
brand name related questions, logo and graphics related questions, print and TV
advertisement related questions, billboard and transport advertisement related questions,
product and package related questions, customer service related questions and network issue
related questions.
The mean value (average) of the seven phases were calculated in the following table. For
example in order to find out GPs the brand name related mean value the calculations were as
follows ---
Q.No.5 Q.No.6 38 29
related with brand name, finding out the mean value in this way is strongly supported
(Marketing Research, 3rd edition, Naresh K. Malhotra, 2003). All the other seven phases mean
values were calculated in this way.
Company 1.
2.
Brand Logo
Name and
Graphics
GP
Aktel
City Cell
BL
33.5
20
8
18.5
27.5
21
12.5
19
3.
Print and
TV
Advertise
ment
33.75
18
15.25
13
4.
5.
6.
7.
Outdoor
Product Customer Network
Advertisement
And
Service
Issue
(Billboard,
Service
Transport, Public
Relation)
31.2
25.67
26.33
40.5
20.4
19.00
19.67
18
11.2
12.33
13.33
11.5
17.2
23.00
20.67
10
Table 10 Calculation of Mean for all seven phases
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Figure 7: Comparison Mean for all seven phases among four private mobile companies
1. Brand Name
Company Mean value
GP
33.5
Aktel
20
City Cell
8
Banglalink
18.5
kind boldness of GP has become possible due to the continuous support and service from the
end of GP. In case of giving different new packages name, GP has also achieved the highest
mean score (29 out of 80). The brand name related mean value of 33.5 also indicates that
GPs different package names are very much unique, easy to pronounce, easy to remember
and overall the package names have already taken strong position towards the major
population. Even GPs packages are very much easy to understand regarding what type of
product it is offering for example GP Regular, GP National, Anytime 300, Anytime 500, Easy
Gold and Easy Prepaid. Random advertisement through out the whole media has created a
strong brand name in the mobile telecommunication industry in Bangladesh.
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Comparing to GP, Banglalink has also achieved a good mean value (18.5 out of 80) where
Aktel and City Cells mean values are 20 and 8 respectively. Though the mean value of 18.5
is far behind than GPs mean value of 33.5,
Banglalinks other two competitors Aktel and City Cell. This mean value showed that within
a very short span of time (6 to 7 months) through the different unique package names such as
ipack, upper class and others Banglalink is trying to achieve a good brand name in the
mobile phone industry of Bangladesh.
combination. In the logo and graphics related questions Banglalink has achieved the second
position. The explanation in achieving the third position is this that though Banglalink says
that the logo represents the skin color of Royal Bengal Tiger, it is still confusing to many
customers. Many customers become confuse when they heard that this logo represent the skin
color of a tiger. And the color orange, though it is a very high eye catching color, it is
somehow less suited with the tiger skin color. Banglalink needs to more clarify the
explanation of its logo through the different types of promotion specially the print media
advertising. After all the mean value of 19 is satisfactory in this sense that it has defeated the
City Cells logo and graphics mean value (12.5) which means people perceive Banglalinks
logo and graphics more attractively than City Cell. In indicates that in terms of getting
attraction through logos and color combination Banglalink has defeated City Cell.
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regarding what the product is and also how much valuable the company is. Among the four
companies GP has achieved a mean value of 33.75 out of 80 in the print and television
advertisement part. This mean value is far beyond the mean value of Aktel (18), City Cell
(15.25) and City Cell (13). GPs mean value of 33.75 has the following explanation --- GPs
print media coverage is highly attractive comparing to its competitors. In most of the daily
newspapers its print advertisement coverage rate is the highest. Customers perceive the GPs
advertisement more than any other companys advertisements. The rate of circulation of GPs
advertisement is in the peak position. This highest rate of circulation has given GP a strong
product positioning towards the customers mindset. Now people perceive that daily
newspapers will really face trouble if the continuous sponsorship of GP will not be provided.
The highest mean value of GP also indicates that GPs advertisements are the most unique,
they have the most distinctive flavor comparing to its competitors. GPs recent television
advertisements are truly based by providing more values to the local people of Bangladesh.
Banglalink has gained the lowest mean value (13 out of 80) in the print and television
advertisement. This lowest mean value carries the following justification --- Banglalinks
print advertisement has started with the message Im a Tiger. On a certain point this
message Im a Tiger has changed and instead of that message a new message has appeared
which is --- You, First. This random changing of body copy has greatly loosed Banglalinks
uniqueness and ultimately the print advertisement got less attraction. Banglalinks print
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advertisements coverage area is still in small size comparing to its competitors for which
customers attraction is losing. In many cases some of the advertisements need more
explanation for the customers to understand what the advertisements would like to speak up.
In the customer care of Banglalink, customers complain rate regarding the poor network is
increasing. Customers are complaining that they do not find good network inside Dhaka city.
In such a situation where the network coverage is still poor in Dhaka city, the International
Roaming advertisement where the advertisement showed different customers talking over
phone around the world and saying London, Banglalink; Calcutta, Banglalink is very
much dissatisfactory to its customers. This types of advertisements really demotivate
customers, customers consider this type of advertisements as an over promise which is not
achievable by the company. Even the latest advertisement of Banglalink of the new package
Upper Class is failed to explain its customers what the package really is.
4. Outdoor Advertisement
(Billboard, Transport, Public
Relation)
Company
Mean value
GP
31.2
Aktel
20.4
City Cell
11.2
Banglalink
17.2
After
summarizing
the
billboard
and
transport
the highest no. of billboards all over the main roads of Dhaka city and also out the city. GPs
new package djuice has created a great attraction through colorful billboards in all over the
Dhaka city. The advertisement messages in the billboards of djuice are very much different,
unique and eye-catching such as jotil prem, kothin bhab, heavy chalu and others. In
case of transport advertisements, it is still believe that it is GP who has made this type of
advertisement greatly popular in Bangladesh. Later many other companies followed the path
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other companies, Aktel and City Cell remain in a lower position in the product and service
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related questions. At the time of this survey, among the 80 respondents 31 respondents said
that Banglalink is the only company who offers the best pre paid package. In the question of
which company offers the best post paid service, Banglalink also got good response.
Achieving a mean value of 23.00 in the product and service related questions represent the
following explanation --- Banglalink came up in the telecommunication market with such an
offer (specially prepaid) which people never expected. This is the package with which
Banglalink made a huge splash in the Bangladesh mobile industry on February 12th of the
year 2005. The product had then been bundled with a handset and six scratch cards net worth
Tk. 1,800. The entire package had been priced at only Tk. 3,400, meaning that the handset
would cost a consumer only Tk. 1,500 (a M2M SIM is priced at Tk. 100, the lowest in the
industry). The launch offer had allowed Banglalink to expand its subscriber base very
quickly. Within one week of its launch the subscriber base had grown to 100,000 from a mere
30,000 and to over 300,000 in just one and half month. Later when in the month of June
Bangladeshs Finance minister imposed Tk. 1200 tax on per sim card purchased, the sell of
prepaid sim greatly decreased. With the legal fight, all the four mobile phone companies
reduced that tax to Tk. 900. A sim card which was sold just at Tk. 200 then became Tk. 1100
(Tk. 200 + Tk. 900). At that moment, it is Banglalink who was come up with the ipack
offer; which is basically the comfort of buying Banglalink Pre-Paid connection by paying
connection fees and Government tax over a short period of time in installments. The policy is
to pay a down payment and pay the rest over 5 to 8 months depending on the type of
connection.
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6. Customer Service
Company Mean value
GP
26.33
Aktel
19.67
City Cell
13.33
Banglalink
20.67
service related questions, it has been found that GP has achieved the highest mean value
(26.33 out of 80). Surprisingly Banglalink has achieved the second position (20.67) by
overcoming Aktel (19.67) and City Cell (13.33) successfully. The reasons behind such an
achievement are as follows --- Though Banglalink right now have only 3 customer care
centre in Bangladesh; with this few customer care centre they continuously think for
customer retention. Even in the question whether Banglalink really cares for customer
retention it was seen that 24 samples out of 80 have supported this. For example,
Banglalinks free SMS was a strong proof behind this logic. Banglalink offered its customers
a free SMS (1000 SMS) offer for 6 months. The condition behind getting this offer was this
that the customer must have to continuously recharges their account for six months.
7. Network Issue
Company Mean value
GP
40.5
Aktel
18
City Cell
11.5
Banglalink
10
Network
issues
are
very
much
vital
issues
in
the
observed that GP has achieved the highest mean value (40.5 out of 80). This highest mean
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value has the following explanation --- GP is currently providing its service to 61 districts of
Bangladesh (370 Upazilas). This is the highest coverage rate among the other mobile phone
companies. GP has successfully launched the GSM technology overall Bangladesh and now
they are going to serve their new technology which the named EDGE. The most important
feature regarding GP is this that their inter network connectivity is the best (36 out of 80);
which is really a unique feature. Comparing to GP, Aktels mean value is 18; and City Cell
and Banglalink remains far beyond GP; mean value of 11.5 and 10 respectively. In the inter
network connectivity issue Banglalinks mean value remains very lower position (15 out of
80). This lower mean value of Banglalink indicates that the company really needs to give
more importance to this network issue before going further.
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In the following table all the seven phases final mean value was calculated.
In order to minimize the complexity of the previous calculations, all the four companies final
mean values have been calculated. This final mean values indicate which companys brand
image is in which position.
The calculations of each companys final mean values are as follows --Mean value of GP,
The study which was carried out with the sample size of 80, indicates that right now GP is
staying in a strong brand position in the mobile phone sector in Bangladesh (mean value
31.16 out of 80). Subscribers perceive GP as an expensive brand name, they consider its logo
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as a highly eye-catching logo; they like GPs print, television, billboard, transport and other
outdoor advertisements. Overall GP has achieved a strong product positioning towards the
customers mind set. Aktels brand image remains in the second position (mean value 19.56
out of 80); Banglalink in the third position (17.39 out of 80) and City Cell in fourth position
(11.90 out of 80).
Getting a third position in the brand image question by defeating City Cell is definitely an
achievement for the new mobile company Banglalink. Now Banglalink needs to think how to
move further and strengthen its positioning towards customers mind by taking the challenge
of Aktel which is the next biggest competitor of Banglalink. Not only that Banglalink needs
to make proper strategic planning for both short term and for long term to make its brand
image stronger in the market place for future growth.
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6.0 RECOMMENDATIONS
Products naming should not be based on social class: Banglalinks has launched its
new product in August which they named Upper Class. Banglalink has already started
to promote this package in different media coverage. This product is basically a
customized post paid package with different added values. Whatever the product is, this
kind of name Upper Class poses a question towards customers mind. A product name
which is based on the differentiation of the social class is not a good idea in such a
country like Bangladesh where most of the population is still living in a lower standard.
With the name Upper Class Banglalink is going to divide its customers base in two
parts --- Upper Class and Lower Class. This kind of naming may prove inappropriate in
future because none of the multinationals or public and private limited companies of
Bangladesh have come up with such an unique product name yet.
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Stick into one color in order to branding: Banglalink has started all of its promotional
campaign with the orange color. In the newspaper, magazine, television, billboards
everywhere the color orange was extensively used. The color orange became the core
color of Banglalink. In such a situation Banglalink launched its new package Upper
Class with the use of purple color in all the advertisements. Many customers have
claimed that the color purple is a duplication of GPs Flexi Loads advertisement.
Banglalink needs to be more cautious in this color issue without which the core literature
of branding will not be fulfilled.
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The mobile industry is growing at a phenomenal pace these days. While it took the industry
leader more than six years to reach its first million subscribers, its last million it had acquired
in a bit more than 2 month period. With an annual growth rate of 132% in the industry itself,
it can be said to be the fastest growing industry in the country.
Banglalink made its mark with the launch of its first package where mobile was made more
affordable at Tk. 1500 only. It now has a spontaneous brand awareness of more than 90%. It
has kept its promise of making mobiles affordable not only through reducing its own prices,
but it has managed to shake the rest of the industry into taking action. The whole industry is
now at the height of its competition, with customers quietly reaping the benefits offered them.
In a country where the mobile telephony penetration is below 2%, the best strategic move for
any operator would be to concentrate on expanding the subscriber base . For this, packages
such as Banglalinks launch offer and its most recent tariff plans are ideal, since like most
emerging markets, Bangladesh is also a pre-paid driven market.
However, in a population where majority of the people live below the poverty line it is
doubtful as to how far the companies can succeed in increasing percentage penetration.
Hence, value added services like new and innovative SMS and IVR based products can help
to raise the level of market share from its current position.
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At the rate the Banglalink is going, in terms of developing unique ideas to make mobile
owning affordable and easy (e.g. the ER for mobiles) and in terms of value added services
and special offers, it is likely that it would soon topple the number 1 company in the country.
However, it would be a tough fight to defeat the number 2.
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