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Grameenphone Ltd., the largest telecommunications service provider in Bangladesh, received its operating license in November 1996 and started its service from March 26, 1997. Now, after 11 years of successful operations, Grameenphone is the largest mobile phone service provider in Bangladesh, with more than 28 million subscribers as of November 2008. The idea of providing mobile phone facility to rural areas in Bangladesh 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 micro credit 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 a 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. Basically Grameenphone is a joint venture enterprise between Telenor (62%), the largest telecommunications service provider in Norway with mobile phone operations in 12 other countries, and Grameen Telecom Corporation (38%), a non-profit sister concern of the internationally acclaimed micro-credit pioneer Grameen Bank. Over the years, Grameenphone has always been a pioneer in introducing new products and services in the local market. GP was the first company to introduce GSM technology in Bangladesh when it launched its services in March 1997.
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We are here to HELP .We exist to help our customers get the full benefit of communications services in their daily lives. We want to make it easy for customers to get what they want, when they want it. Their major values are , we never forget that we are trying to make our customers' lives easier, we want to be a partner in the development of our community , we are about delivery, not over promising - actions not words , We are respectful and professional in regard to all our interactions, both internally and externally.
1.1.3 Financial summary
Grameenphone is not only committed to its customer but also to its shareholders. They always try to provide handsome amount of money as a dividend to its share holder. Although 2007 was not a good year for the GP, they still gave BDT 26.66 dividend per share which is higher than of any other previous year. Their net profit to turnover ratio decreased from 16% in 2006 to 6% in 2007. It was mainly due to the fact that they had to compensate BDT 168, 42, 43 K to BTRC for illegal business concern, which directly affected not only the Net profit to turnover ratio but also Earnings per share which decreased from 132.41 to 54.14 from the previous year .On the other hand, Return on total asset decreased from 27 % to 18 % for the fact that they invested BDT 81,60,99,87 K on property, plant and equipment, network. This amount was 1.5 times higher than of previous year. However their dividend payout ratio increased from 19% to 49% which is good sign for the investors. In 2007 their revenue was BDT 54,303,146 K.
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1.2 Back ground of the product / service to be covered 1.2.1 Intro of the product
Djuice (short of digital juice) is a youth based mobile phone plan from Grameenphone. This is a prepaid package. Djuice was launched in Bangladesh on the 14th of April, 2005. The main objective of this brand is to serve the youth segment of the market. The product has been specially designed to cater the needs of youths of Bangladesh. The 3 main features of this brand is Music, Messaging and friend. Ever since the launch djuice has seen a big warm response from the crowd. Within two years djuice Bangladesh had enlisted around 2 million subscribers. On the 14th of April, 2007 djuice Bangladesh shed its old logo and put on a new logo which was a part of the worldwide re-branding process of djuice. In 2008 they adopted a new brand message that is “Break Free”.
1.2.2 Its purpose
In Bangladesh, all the six mobile operators targets either corporate people or general public. None of them except Grameenphone thought of the young generation who may have different need, want and demand. In this situation Grameenphone offered djuice, which is specially catered for the young people to fulfill their need and want by providing different youth oriented features.
1.2. 3 Other items in the product line
Beside djuice they have other four different type of product line. These are •
Smile: This is a mobile to mobile prepaid package for those people who want to
control his/her phone bill. By using this package anyone can call any mobile number inside the Bangladesh.
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Smile BTCL: This is the extended version of Smile. This is also cost saving
prepaid package. The only difference is, by using this package anyone can call to any mobile and land phone number both national and international.
This is a post paid connection for those who are not bothered about the
phone bill. It provides national and international phone call facility to any mobile and land phone. • Business Solution: This is a complete, quality business communications service provided by Grameenphone – designed especially for the business community in Bangladesh.
There are no direct substitutes of Djuice in Bangladesh as it is the only youth oriented mobile service brand. But we can consider some indirect substitutes on the basis of call rates and offerings – • • • Banglalink Desh Rang package Warid FnF package Teletalk Shadheen Package
2.0 Situation Analysis 2.1 Internal situation
The internal situation of a firm consists of factors that shape the firms internal environment and strength and weaknesses. These factors are in the control of the firm. Firms can change co-ordinate, redesign, reestablish these factors according to the organizational needs and objectives. These factors include firm’s products and services, financial management capability, human resource and Capital goods, information technology etc.
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2.1.1 Firms products and services
Grameenphone claims itself pioneer in providing world class telecommunication service in Bangladesh with innovative product and services while providing superior customer experience. Grameenphone serves different types of products and services depending on the categorization of its customer. There are special packages for B2C and B2B customer separately. For B2C customers its services can be categorized into two type of subscription. Those are pre-paid subscription and postpaid subscription. Again prepaid subscription can be subdivided into three plans.
Smile (mobile to mobile connectivity within Bangladesh):
This is the primary package of Grameenphone targeting the economy class segment of the market. The package was designed to suit middle and low income consumer in the market. For instance: Farmer, student, housewives etc. This package features great start up offer to a new subscriber, low call rates, special discount offer entitled as Thank you bonus, special call rate for three friend & family numbers and other facilities. This is very easy to use by the lower education level customers because it has an easy recharge and balance transfer quality.
Smile PSTN (nationwide and international mobile and land line connectivity):
This package also contains the same attributes of Smile but it also has some elaborated leverage of international calls and land line connectivity. Djuice (a youth based mobile to mobile connectivity within Bangladesh): Grameenphone launched the brand Djuice in 2005; first ever “Youth” brand in Bangladesh. The main objective of this brand is to serve the youth segment of the market. The product has been specially designed to cater the needs of youths of Bangladesh, both urban and rural. Djuice has various features designed for youths, namely; special rate for Djuice community, Xtra Khatir, (discounts at different outlets).Djuice also arranges
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different special programs for youth, like, Drockstar
(music competition), Know
Bangladesh (awareness program).The djuice brand is positioned as the “Youth Brand”. The 3 main features of this brand is Music, Messaging and friends. Recently the brand was refreshed with a new brand message “Break Free”. And there is only one package under postpaid plan.
Xplore (nationwide and international mobile and landline connectivity):
Xplore is the only postpaid package in the Grameenphone’s product line. It is generally designed to satisfy the needs of a busy person’s life. The person can be an executive, a doctor or in any profession. The message of the package is by gaining the access of unlimited information and entertainment. It sets a person free from his/her busy life. The features of the package are attractive startup offer, low flat tariff, flexible credit policy, thank you bonus, and other value added services.
Grameenphone Business Solution:
This is a GP service directed to B2B customers of the Grameenphone. Business Solutions is a complete, quality business communications service from Grameenphone – designed especially for the business community in Bangladesh. Grameenphone Business Solutions team is dedicated to provide help B2B customers with customized telecommunications solutions through consultation with them.
Value added services:
Grameenphone also offers different value-added services
including SMS, MMS, Welcome Tunes (Ring back Tones), Voice SMS, SMS Push-Pull Service, Voice Mail Service (VMS), and Fax and Data among others. Grameenphone was the first mobile operator in Bangladesh to offer EDGE services to its subscribers.
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2.1.2 Capabilities of the firm 188.8.131.52 Financial
Grameenphone celebrated the year 2007 as year of consolidation and growth and reinforcing its position as a market leader. It gained robust revenue with a growth of 18.6 percent with a staggering amount of BDT54.3 billion at the end of the year. In that year Grameenphone made BDT35.8 billion fresh investment in further increasing its network coverage capacity. The cumulative investment reached BTD111.5 billion at the end of the year. Grameenphone has been the largest corporate tax payer of the country for three consecutive years. All this information proves that Grameenphone is a self-sufficient, financially strong corporation that is successfully running all its businesses and generating fuel for further expansion.
184.108.40.206 Human Resource
Grameenphone attributes its continuous success over past years largely on its dedicated, professionally competent team people working for the company. Grameenphone’s philosophy is investing in human capital and empowerment in order to obtain greater productivity. That is why it has always paid attention on continuous training and developing its employees’ competence and leadership quality. A performance driven corporate culture along with ample opportunity for career growth has made Grameenphone a popular employer in Bangladeshi job market.
220.127.116.11 Technological ability
Grameenphone has the largest network with the widest coverage in the country. The GP network now covers over 98 percent of the population and over 87 percent of the land area with the remaining areas mostly falling under the Sundarbans and the Chittagong Hill Tract areas where mobile phone coverage is not allowed. The company invested more than BDT 35.8 billion in 2007 primarily to further expand the coverage and increase the capacity of its network. A record 4181 new base stations were put into
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operation around the country during the year, crossing the 10,000 base station milestone in the process. In addition, the entire Grameenphone network is EDGE/GPRS enabled, allowing its customers to access high-speed Internet from anywhere within the coverage area.
Figure: Radio access Rollout: Base stations
18.104.22.168 Study of the firm’s past success and failure
The Village Phone initiative was given the "GSM in the Community" award at the global GSM Congress held in Cannes, France in February 2000. Grameenphone was also adjudged the Best Joint Venture Enterprise of the Year at the Bangladesh Business Awards in 2002. Grameenphone was presented with the GSM Association's Global Mobile Award for ‘Best use of Mobile for Social and Economic Development' at the 3GSM World Congress held in Singapore, in October 2006, for its Community Information Center (CIC) project and for its Health Line Service project at the 3GSM World Congress held in Barcelona, Spain, in February 2007.
Grameenphone didn’t face any substantial failure in Bangladesh. But to some extend it has hampered its goodwill by involving itself in illegal VoIP operations.
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2.2 External Situation
External Situation of a firm relates to external factors like government, culture, demography, present administration of the firm, customers, market segmentation, positioning strategies, competitor’s information etc.
Government plays a significant role in the telecommunication industry by putting restriction on the network system the companies should use. In addition, every offer a company makes to its customers is watched by the government. Previously government has banned the companies from offering free calls especially after midnight. These facts play important role in Djuice’s operation as well.
Recently, due to globalization and influence of western culture, our young generation is becoming more funky and westernized in every aspect of their behavior. That’s why they are using mobile phones more and more. They prefer products that resemble uniqueness, so they are getting interested about SIM card services that are fully designed and created according to their need. Not only the youth but other age people are also getting used to mobile phones. This cultural change is playing a significant role in telecommunication business.
Demographic factors like age, sex, income etc. are very key issues in influencing consumer behavior regarding mobile phone service. Usually, the younger generation people are more prompt in using mobile phones than the elders, whereas male are more prone to have mobile phones than females. In addition, Income has a big impact on mobile phone use as people with higher income are more inclined to use phones rather than the lower income people.
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2.2.1 Customers 22.214.171.124 Characteristics
Djuice has been launched basically concentrating on the young generation of Bangladesh and the features of this brand are designed keeping the wants and desires of this particular customer group in mind. Both male and female youth from urban areas is targeted, who are from any institutional stage, from school level to undergraduate/graduate level.
126.96.36.199 Buying pattern
Mobile phone connection is based on single time buying pattern. The availability and cheap cost of Djuice SIM card has made its customers to adopt multiple mobile identity holders whenever they want. In urban areas a recommendable number of Djuice subscribers have more than one Djuice SIM card. The buying decision is mainly a result of influence of friend circle and holding an identity of “Djuice Dania”. There is a point to be noted that no other telecom company in Bangladesh offers such a brand which is concentrated only on the youngsters.
188.8.131.52 Factors influencing purchase
Friend Circle: Usually teenage group is highly influenced by friends. They try to have the same thing as friends do. And in maximum friend groups, most of the young individuals have Djuice connection which enforces another friend to go for a Djuice connection. Image: The image of Djuice has been created in such a way that highly influences the young generation. Even the image is set up mentioning the generation “Djuice Generation”. Promotion: The specially catered promotional policies and the “Djuice Language” such as “Jotil Prem”, “Djuice Dunia” etc has created an appeal amongst the youngsters. Tariff and Offers: Reduced tariff for certain time of the day, low call rate to dear ones through FnF service, bonus talk time, free bundled SMS, voice SMS, mms are also responsible for Djuice craze amongst teenagers.
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Uniqueness: Djuice “Extra Card” was an influencing factor for early Djuice users. This card was given as a discount card or extra facility card at some shopping malls, super shops, restaurants, different service providers etc. Customer Service: Availability of Djuice (Grameenphone) customer service, recharge card and flexi load services are also another influencing factor.
Usually the lifestyle of young generation is uniquely different from the other age groups. They usually have lots of friends so frequency of communication through mobile phone is very high. They want to lead a trendy lifestyle and want to try something new. Among the youth there is a considerable number who like to use mobile phone more at night, usually after midnight. They like to move around, enjoy life and chat with friends. Their lifestyles reflect the symbol of youth, who can enjoy life and have a tendency to break free from the traditional views and culture.
2.2.2 Market segments
Djuice segments the market in three main categories. They are • Demographic segmentation: Demographically Virgin divided the market into three parts. They are AGE: Djuice’s target market is young generation people aged between 15 and 25. Sex-wise: Djuice does not differentiate sex wise. They are always aiming at both male and female. Income: As Djuice s aimed to young generation they assume that their target customers will have limited income and that income will not be high. • Geographic segmentation: Now they are mainly targeting the urban areas. People who are trendy, young and unique are their target market. In Bangladesh, their majority sales come from the big metropolitan cities and urban areas.
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Psychographic segmentation: Djuice mainly segments the market based on psychographic lifestyle, which means they consider their consumers life style to determine the segment. Djuice is for those, who want to experience something unique and trendy. This sort of nature is mainly found within the young generation who wants to be different among all around them.
2.2.3 Positioning strategies
Positioning of Djuice is mainly focused on trendy-young generation. No other telecom company offers any service package which influences young stars to rock in life, to be a part of something unique, to make them feel having an image of a world of their own. The unique image of “Djuice Dunia” has been successful to get the attention of young users all over the country. It has become like today’s trend to be a member of this “dunia” and young users actually feel proud to be a part of it.
2.2.4 Competitors’ Information
Djuice does not have any direct competitor as no other company has a service solely aimed at younger generation. But if we talk about other mobile service providers then they have strong competition with Banglalink, which is the local company for Egyptian owned Orascom telecom. There are other competitors such as Citycell, Warid Telecom and Government subsidized Teletalk.
3.0 SWOT Analysis of Djuice 3.1 Strengths
Unique brand: GP’s Djuice is the only youth brand in Bangladesh. GP is the first to identify and serve this segment in Bangladesh. No other telecom company is till now competing in this market segment with djuice. So to some extent djuice has an absolute advantage in this market segment.
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Large market Share: In an overpopulated country like Bangladesh young generation contributes as a large chunk of the overall population. In the Bangladeshi perspective it is huge market and GP is the only firm operating in this segment and djuice has a large market share in this segment. This is a really important achievement for Djuice brand. Brand reputation: Djuice recently has come up with a new brand message that is “break free”. It is a new effort to refresh the brand. Prior to that Djuice is already popular in the young for the effort for creating a distinct life style. The brand is quite successful in creating a unique community named as Djuice community. It exemplifies the success of the brand. Product features & promotional tactics: The distinct product feature is very much responsible in attracting the target customer to the brand. The features are craved in such a way that young generation can really make use of it. A large portion of the Djuice promotional effort goes for publicity such as Sponsoring concert, music talent hunt program etc. These tactics are really successful to draw young generation’s attention to the brand.
Criticism: Some people think that Djuice is a brand directed to the unproductive segment of the population. It creates an extra burden on the parents. Some of the product features of Djuice such as a very low call rate from 12.00 am 7.00 am created question about the moral validity. Ineffective pricing: it is huge setback for djuice as its call rate for djuice-GP (2tk/min) is higher than normal GP-GP call rate (1.5tk/min).
Lots of opportunities still exist for Djuice including span of the market, make better relationships with subscribers etc.
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Span of the market: Djuice captured most of the young generation’s eyes. But all are concentrated on urban or metropolitan centric young people. There are a huge number of young people who does not live in the urban areas who are mostly untouched. Djuice can start their activities to capture this segment as well by specially tailored promotional campaigns. Better relationships with subscribers: It is said that service companies live on their relationship with customers. Djuice can start activities like installing separate “Djuice service centre” to make better relationship with the users. This extra importance can help them to be closer with the users. CSR: The mother company of Djuice brand is engaged in various CSR activities but the brand itself is engaged comparatively less except for helping in arranging concerts to raise charity, rock band search etc. The relationship with the society can get closer by broadening the horizon of Djuice’s CSR activities.
There are also threats along with opportunities in the market. Potential competitors: Telecom industry is not much saturated yet but the competitors like Aktel, Banglalink, and Warid are always coming with their new attractive offers. As djuice is the only youth centric brand, other telecom companies might target them as well. This is really a big challenge for even a brand like Djuice to keep on a consistent track of success. Image: Djuice’s all promotions are based on “rock” life style which is very much welcomed at the young generation but most of the times hated at the parents level. This can have significant negative consequences as most of the Bangladeshi youth’s buying choice is usually directed by the parents. Ongoing political instability: There has been a political instability going on in Bangladesh for the past few years. As all service companies rely on their offers and treatment of the clients, the current political situation might hamper Grameenphone’s service activities in a way that the subscribers may not get well treated sometimes. For an example, a shortage of “Credit Recharge Card” may occur during long term strike. Page 14 of 26
4.0 Developing the IMC 4.1 Communication objectives
Communication objectives refer to what various aspects of IMC program want to accomplish. It represents particular communication tasks required to deliver an appropriate massage to the target audience. It includes -Letting the consumers know about the product and promotional activities, creating a favorable position in the prospective consumers’ mind and a positive brand image. Djuice’s communication objectives are – Reaching the youth who are bold and like uniqueness, surprises, adventure. Strategy: Djuice’s main target customer is the young generation. Keeping this in mind to reach the young generation Djuice has always planned their promotional activities according to their taste and choice. With the new refreshed brand message “Break free”, they are offering the youth an opportunity that will give them freedom. Djuice has already proved their point of being unique by bringing the best rates (0.75 tk/minute with 30sec pulse) to help young people stay in touch, they are planning to reduce Friends & Family (f&f) tariff and community call rate and give free SMS. They are also planning to give the youth more access to the coolest downloads, the trendiest mobile services (Djuice dunia, Xtra khatir, web SMS… to name just a few!) with reduced charges and better service. As Djuice likes to give the young people a taste of something new, they are planning to renew their Associate partnership with Star Cineplex to bring blockbuster Hollywood movies like “James Bond:Casino Royal”, “Rush hour 3”, “Indiana Jones” etc. They are also planning to continue their exclusive benefits like ‘Buy one get one free’ offer for these movies for Djuice subscribers.
Gaining 4.5 million subscribers within December 2009.
Strategy: With the already existing 2.8 million subscribers, Djuice is planning to gain 1.7 million more customers with its newly promoted fresh look. As the young
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generation always wants to be one step ahead on every aspect, Djuice is planning to bring new features like ‘Mobile TV’, 3rd generation (3G) mobile services in the year 2009. This will not only increase sales but will also help to increase the profitability and capture more young subscribers. Djuice is mainly targeted to the urban youth but as the urban market is already saturated, Djuice is planning to move to the rural youth within 2009 with new promotional offers, reduced tariff plans and bundled benefits specially tailored to the rural youth. This will help Djuice to gain a vast amount of rural youth as subscribers and as a result their total number of subscribers will also increase to the target level. To promote the brand’s awareness by 100% within December 2010. Strategy: Energy, attitude and aggression…all the things the youth loves to have, with this in mind, Djuice is planning to promote their talent hunt program ‘DRockstar’ to every corner of Bangladesh to scoop out and nurture promising rock musicians from all over Bangladesh. This way Djuice is planning to reach the young generation all over the country and create awareness at a large scale. This will also help promote their image as a promising youth brand. They are also planning to spread the ‘Know Bangladesh tour’ to the farthest corners of the country. This will spread the brand’s image as a brand that cares for the country and its people and wants make it better with the young generation. Reach 60% of the target customers within December 2010 at a 10% lower cost Strategy: To reach the highest number of target customers with a short span of time Djuice is emphasizing on mass advertising rather than distributed advertising because mass advertisements will help them to get a share of mind within a short time. Print ads are the best way to reach highest number of target customers in Bangladesh as television is not available in all part of the country but newspaper is and this is the only media vehicle that will stay in the consumers reach. Djuice is mainly targeted to the urban youth who lives in the major cities and towns for that they used only major dailies like Prothom alo and Daily Star, but now they are planning to use other
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prominent dailies too. With the existing channels with highest TRP like ‘Channel i’, ‘NTV’, Djuice is planning to target all the channels like ‘RTV’, ‘Bangla vision’ so that they can not only grab most of the air time but can also grab most of the consumers mind. Now a day’s FM radio channels like Radio foorti, Radio today, Radio aamar are getting very popular among the young generation. Djuice is planning to air advertisements on radio before, during and after the youth oriented programs which will cover their exact target customers at a cheaper price.
4.2 Media mix options/ Media portfolio 4.2.1 Media mix
Djuice uses a wide variety of media to communicate their message with the customers. Different local newspaper, TV channel, radio, billboards, etc. fall under the media mix of Djuice. Different media mixes used by Djuice are –
184.108.40.206 Print Media
Djuice prefers newspaper as one of the most important media vehicle and allocates around 50% of their promotional budget to it. It is a very common and effective promotional tool for Djuice to communicate with their target market. Their ads are published in the leading national dailies. Their newspaper ads are mainly made by Bitopi Advertising Ltd, Gray advertising Ltd, Interspeed, Asiatic, Adcomm etc. Selecting the Newspaper: The Daily Prothom Alo and the Daily Star are most preferred by Djuice for press advertisements as they are the leading national dailies in terms of subscribers. Selecting the Page: All the new advertisements are 1st given in the 1st page in quarter page size. Then in half or quarter page size in the 3rd page or the last page of the newspaper. Then after a few
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days the ads are shrinked to less than quarter page but the ads remain in the 3 rd page. Then again after a few days, the ads are replaced to 5th or gradually to any other page. Advantages: • • • Published in a large number of copies. So maximum coverage can be achieved. Unlike Broadcast media, it can be seen at the reader’s own convenience. Requires less time to prepare the ads and cost of preparation is considerably lower than broadcast media. Disadvantages • • Scope of visual presentation is limited in the newspaper ads. No auditory effect.
220.127.116.11 Broadcast Media
Television is also preferred as one of the important media vehicles. It plays an important role to provide information, and to promote the new ads and offerings. Djuice allocates roughly 30% of their promotional budget for TV ads. Selecting Channels Djuice broadcasts their ads through all the local TV channels available. All the private TV channels are used to broad cast the ads. The private TV channels that show the ads of Djuice are mostly NTV, Channel i, RTV, Boishkhi, Bangla vision, Channel 1. Determining Frequency: The frequency of broadcasting the ads is mainly based on type of promotion, age of the promotion and type of program. Djuice often places their ads according to programs that are most popular in TV channels and are youth oriented. Ads are shown in the beginning and or at the end of the show, usually of 15 sec. It shows 30 seconds ads when the ad or
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promotion is new and 15 seconds ads when the promotion gets a bit aged. Which TV channels are to be selected to out advertisements is based on TRP.
Advantages: • There is more scope to be creative in television than in any other media as it supports the creativity with audio and visual impact. This makes the ad more meaningful as motion, tone, image everything is demonstrated. • • Another way of making target customer watch the ad is by giving caption underneath while program is running especially in sports time. Everyone at some point of time watch television so wide coverage is assured so the spending on television is definitely effective and the cost per viewer is very low. • Television provides a faster way of communication of the message of the promotion. Disadvantages of using television are: • It is very expensive to place an advertisement on TV as the cost of buying air space and time is involved and the making of ad with proper theme is also very expensive. • • The most undesirable problem that television ads face is the zapping problem. That is as soon as the ad starts, channels are changed. Now air time is given more to commercials other than to programs, which is known as clutter problem. For this reason TV is losing its appeal.
Another broadcast media that Djuice uses is the radio. It is a new media vehicle for them but it is becoming effective as there are some new and popular FM channels which are grabbing listener’s attention. They allocate 5% of their budget to it. It transmits ads in the private radio channels like Radio Today, Radio Foorti, etc. Method of determining frequency of the ads on both TV and Radio is similar. Page 19 of 26
Advantages • • • • Important medium for communicating with the target market. The number of radio listeners is increasing rapidly every year due to the emergence of FM channels. It is much less costlier than television In many cases it has been seen that radio can reach the remotest of regions where television cannot reach. This is because in many parts of our country it has been seen that TVs are not available and so radios are the only means of spreading the message. • Because of the lower cost manufacturers can afford to run their advertisements more frequently on radio compared to TV.
Disadvantages • • Products cannot be demonstrated or shown as a message can only be spread using audio techniques. So no visual effects. Lesser scope for showing creativity than TV.
18.104.22.168 Out-of-Home Media
Billboards of Djuice have become quite a common sight in most parts of Dhaka. It is a very important media vehicle for Djuice as they allocate roughly 10% of their budget to it. In big cities djuice gives large billboards at different points. Billboard placing is decided based on the strategic location of the billboard, certain factors are taken into consideration, like; Location Target audience
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Selecting the Points Inside big cities, Djuice puts large billboards at the turning point of the roads and beside the roads from where they can be seen easily by a large number of viewers. Djuice also puts billboards in the major points of highways where travelers stop or slows down speed. Advantages: • Billboards are very good for drawing the attention of people. Because people who pass through the street usually can’t be busy doing anything else other than to sitting in the vehicles, especially while in jam; billboard is a good way to draw their attention at that time. • It helps them to remind the customer all the time that Djuice is always there for the customers. It also helps to create brand awareness which is a very important thing to increase the sale and to create favorable brand positioning. • Geographical selectivity is also possible by placing the billboards in locations preferred by the company. Disadvantages: • • People usually do not get time to read all the information given on the billboards. Billboards are exposed to all the people who are passing through the road, it results high waste coverage for who are not the target customers of Djuice.
Djuice sometimes gives posters, flayers, paper caps, papers fans during festivals like; Pohela boishakh, Valentine’s Day, Pohela falgun etc. They have also branded some buses that roam around Dhaka city. Advantages: • • Provides an easy but effective way of creating brand awareness. Provides effectiveness in terms of cost, time, and placement.
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Can be given anywhere to inform people about the product or an event organized by Djuice.
Effective way of direct communication with customers.
Disadvantages: • • Limited scope of auditory effect. Customers may pass away without even looking at the items.
4.3 Types of Ads and Ad Appeals used
Djuice mainly uses emotional appeal for their Ads, which are transformational in nature. By using the punch line ‘Break free’ with tag lines like ‘Friends, chatting, music...all are here’, Djuice tries to associate a unique set of characteristics to their product. As Djuice has the distinct competitive advantage over all other mobile service providers that it is the only youth centric brand, this appeal is the best one that suits their approach. Apart from that, according to our opinion, Adventure ads, ads containing rock music and Personality symbol are the most appropriate ad types as all these matches Djuice’s product category and attributes. As Djuice target market is the young generation, adventurous ads and rock music based ads can have their best implication. Also, a central character or personality symbol can deliver Virgin’s motto of doing things differently properly to the target audience in the context of real life situation.
4.4 Analysis of the Advantage/disadvantages of maintaining the program in house or using agency
An external advertising agency handles most of the Djuice's marketing communication. As for promotional mix, all sorts of media are used for Djuice, like any other brand in Grameenphone. But, more focus is also given on media, which are preferred by the target segment. Some focused campaigns like, RJ selection in university campus, Drockstar music competition etc are being carried out. The leading dailies are preferred for press advertisement. Ex: Prothom alo, Daily Star. Billboard placing is decided based on the Page 22 of 26
strategic location of the billboard, certain factors are taken into consideration, like; Location, Target audience etc. Advantages of using outside Ad Agency • • They can provide the clients with the services of highly skilled individuals who are experts in their respective fields for the advertising campaign. An advertising agency’s staff includes a collection artists, writers, media analysts, and researchers etc, who have the specific skills, knowledge and experience to carry out the job effectively and efficiently. • • • They can provide an objective view point of the market and its business that is not subject to internal company policies, biases or other limitations. They have more varied perspectives and greater flexibility. Flexibility is greater because the company can dismiss the agency if they are not satisfied. Outside agencies have the “inside” knowledge (know the “ins” and “outs”) of the market and are able to give a better future predication about market trends. Disadvantage of using outside Ad Agency • • • • Outside ad agency can be very expensive They may lack the knowledge and understanding of the market. They may not be able to convey the message the way the company wanted it to be communicated. As company does not have tight control over the outside agency (as it would have if it used an “in-house” agency) it will be difficult for the company to coordinate promotions with the firms overall marketing program according to the company’s views and wishes. • There may also be the threat of “conflict of interest”-the outside agency may have way of doing things that is different from the company itself. Despite the disadvantages mentioned above of using an “outside” agency, for the promotion of djuice, it will be comparatively better for Grameenphone to work with/hire an “outside” agency. It is because outside agencies are much more flexible but cost
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effective than “in-house” agency. GP has developed good relationship with its “outside” agency like Gray/Asiatic/Adcomm and they work as a team. These agencies understand the needs and specifications of GP and so does their work with more dedication.
5.0 Budget determination
The company did not provide us with the exact amount of their promotional budget, but we were given some hints. Grameenphone basically uses a top-down approach where their budget is usually set in top management and then passed to the managers. To some extent Grameenphone determines their marketing budget by looking at the movements of their competitors. They also think that marketing budget is like an investment as their customers get attracted to them through their marketing activities. In 2007, Grameenphone spent approximately Tk.1 billion for all their promotional activities and from this 25% to 30% was allocated for Djuice. According to their company marketing policy Djuice always put emphasis on newspaper ads. Normally they put their ads on 3rd page or middle pages. But sometimes if they want more exposure they put their ads on front page or a full page ad on 2nd page. For newspaper ads with more importance they usually spend Tk 250,000-300,000 and for regular newspaper ads they spend Tk. 40,00050,000. After newspaper, Djuice gives equal importance to billboards and television ads. For each billboard at a prime location they spend more or less Tk. 400,000. Their budget for making of a normal 30sec TV ad is approximately Tk. 2 million. For airing these ads all day they spend usually Tk. 10,000 for showing it each time at normal time. But if they want to telecast the ad before news or during festivals then they spend Tk. 30,000-40,000 for each time. Recently FM radio channels have gained tremendous popularity among the youth generation, so they are putting on their ads on radio channels too. If we summarize their budgeting then we shall see that they allocate 50% of their promotional budget for newspaper ads, 30% for TV ads, 10% for billboards, 5% for radio and 5% for others which include posters, festoons, banners etc.
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Figure: Budget allocation for different medias
6.1 Monitoring and controlling
Djuice tries to collect feedback from their distributors and retailers almost on a daily basis. In this way, they get information about their competitors and can analyze them. Based on that analysis, they conduct definite surveys, retail audits and focused group discussions to understand their own position in the market. From the results of that analysis, they can formulate or change the strategies if necessary. It helps them to take necessary steps must to sustain in the market. It is a regular practice in Grameenphone that they held weekly meetings with all the employees involved with a brand. In this way they try to get the fresh ideas of improvement and they also try to implement these ideas as soon as possible. Grameenphone has 24 hours customer care phone line which keeps them connected to the customers and they can get customer feedback and solve customer problems as well through this.
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The positioning strategy and the total IMC campaign of Djuice portrays young people who like rock music, chatting and hanging around with friends. Today there are many young boys and girls who are doing various productive activities like coming up with their own business plan, inventing new technologies and software. As a brand that represents solely youth they should also concentrate on young people who are doing these productive activities. Young generation likes to have fun in their life but along with that they also have to take some responsibilities. Djuice can play an important role in guiding them towards their responsibilities. They can sponsor various talent hunt programs other than Drockstars which will emphasize on other parts of life. Another thing is most of our parents do not feel comfortable with their school going children’s talking over phone late at night. So rather than targeting customers of below 18 years they should switch their target market to 18 above people.
If Djuice can improve its overall IMC campaign and give emphasize on rural youth and youth representatives who are doing productive work it can confidently hope to achieve its long term mission. Having gained an in-depth look into the promotional activities of Djuice, we can conclude that they have been quite successful with the brand and repositioning of the brand. However, still there is a quite huge untouched market for mobile phone service providers that can be a big chance for Djuice to prove their credibility. To be more dominant and successful in this industry, Djuice must have a good amount of money for their Marketing and Promotion budget which will take them way ahead from where they are now. We think that emphasizing more on marketing activities along with promotion as a means to their success will definitely bring good results for Djuice in the near future.
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