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CUST O

Asse ssi

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MER SATI SF A C TION OF

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Assessing Customer Satisfaction of

Submitted to:

Mr. Mahbub Parvez
Internship Supervisor Assistant professor & Head of BBA Program Faculty of Business & Economics

Submitted By:

Md. Mahmudul Hasan
ID: 062-11-1314 BBA Program Faculty of Business & Economics Daffodil International University

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Daffodil International University 28 December 2007 Mr. Mahbub Parvez Assistant professor & Head of BBA Program Faculty of Business & Economics Daffodil International University 102, Sukrabad, Mirpur Road Dhanmondi, Dhaka- 1206

Subject: “Submission of internship report on “Customer Satisfaction of GrameenPhone”

Dear Sir, It’s my pleasure to submit you internship report on “Customer satisfaction of GrameenPhone Ltd”, after completion of my internship as prerequisite for BBA Program. In this report, I have tried my best to focus on the Customer satisfaction of GrameenPhone. I believe that this internship report will help us to find the satisfaction level of GP existing subscribers. I will be pleased to provide further clarification on this report whenever necessary. I hope, you will accept my report and oblige thereby.

Sincerely yours,

…………………………………. Md. Mahmudul Hasan ID: 062-11-1314 BBA Program Faculty of Business & Economics Daffodil International University

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Acknowledgment

This Internship Report would have never seen the face of light without the help and cooperation of the following people. First of all I would like to thank my honorable faculty Head and my Internship supervisor Mr. Mahbub Parvez for giving me the permission to work on this topic. I would also like to thank my supervisor for his clear guidelines that enabled me to understand the structure of the paper.

Next, I would like to thank GrameenPhone authority for their helpful and active cooperation. Specially, to Mr. Yeasir Mahmood Khan, Manager, Inbound Call Management Center, Customer Service, Commercial Division, Grameen Phone Ltd. for an interview and other supports. I would also like to thank the sample that I surveyed. Without their cooperation, it was not possible for me to collect primary data.

With warm thanks,

…………………………………. Md. Mahmudul Hasan ID: 062-11-1314 BBA Program Faculty of Business & Economics Daffodil International University

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Table of Contents
A. Executive Summary B. Organization Part: 1. Introducing the Company 1.1 History of GrameenPhone 1.2 The People 1.3 The Services 1.4 The Technology 1.5 GrameenPhone Corporate Governance 1.6 Corporate Social Responsibilities 1.7 Shareholders of GrameenPhone 1.8 Management of GrameenPhone 1.9 Division at GrameenPhone 1.10 Current State & Future Direction of GP C. Project Part: 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 Introduction Objectives Significance of the Study Hypothesis Methodology Customer Satisfaction (Theoretical View) Customer Satisfaction Factors of GP Conducting a Survey Presenting the Survey Results 42 42 43 43 44 45 46 50 51 08 09 12 12 12 13 14 18 20 22 40 06

D. Analysis of the survey: 3.1 3.2 E. F. G. H. Applying the GAPs Model of Service Quality Recommendations to close the GAPs 74 79 80 81 82 84

Limitations of the Study Conclusion Bibliography Sample Questionnaire

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A. Executive Summery:

GrameenPhone is the leading company in the mobile telecommunication industry of Bangladesh. It has been successful to build a superior image in comparison to the other operators. In other words, GP has a clear advantage over the competitors. GrameenPhone has some additional features in comparison to its competitors. It is playing a vital role to increase the subscribers of GrameenPhone. Another important thing is that GP users are mostly satisfied with the initial price of GP connections and hand-sets. Because, before GP’s introduction to the market, mobile phones were totally out of reach to the major part of the current market. Moreover, GrameenPhone subscribers are happy with the country-wide network. But overall, GP users are not satisfied with service of the company. Many important factors are acting as reasons behind this overall dissatisfaction. Quality of airtime and network availability is not satisfactory. GrameenPhone connections are not always available. This is especially true for the Pre-Paid service. (Very recently, after conducting my survey, situation has been changed slightly). Sometimes, the subscribers need to pay extra money to get this service. The GPC of GP is very important for some after-sales services. But, these have shortage of capacity. GP hotline is also an important customer care tool. But it is also in shortage of capacity. Subscribers need to spend significant amount of time to reach the customer care. Behavior of the hotline CM (Customer Manager) is also questionable. But if we think from their end CM (Customer Manager) it is too tough to handle a large numbers of subscribers with a smiling face continuously. Again the problem is capacity. Most of the subscribers are not happy with the billing rate of GrameenPhone. They think it is too high in the context of Bangladesh Another significant dissatisfaction of the GP users is that most of the GP connections are mobile to mobile. They do not have access to BTTB. But it is important for many subscribers to get this service. Most alarming thing is that most of the GrameenPhone users are not loyal towards the company.

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Organization Part

GrameenPhone Ltd

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1. Introduction of the company:
GrameenPhone Ltd. (GP) is the market leader in the mobile telecommunication industry of Bangladesh. The address of its Head Office is: Celebration Point, Plot No. 3 & 5, Road No. 113/A, Gulshan-2, Dhaka 1212, Bangladesh. GP is a joint venture between Bangladesh and Norway. Major shareholders are Telenor (68%) and Grameen Telecom (32%). Telenor is the state owned telecommunication company of Norway. It has operations in different countries of the world. On the other hand, Grameen Telecom is the sister concern Grameen Bank, one of the biggest Non Government Organizations (NGO) of Bangladesh

Company Vision:

“WE ARE HERE TO HELP”

Company Mission:
1. Knowing customer Expectations 2. Knowing us 3. Organizing us

• Company Values:
1. Make it Easy 2. Keep Promises 3. Be Inspiring 4. Be respectful

1.1 HISTORY OF GRAMEENPHONE

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November 28, 1996: GrameenPhone was offered a cellular license in
Bangladesh by the Ministry of Posts and Telecommunications;

March 26, 1997: GrameenPhone launched its service on the Independence Day
of Bangladesh;

June 1998: GP started its services in the port city of Chittagong, the second largest
city in the country. Cell to cell coverage in the Dhaka-Chittagong corridor also enabled GP to introduce its service in a number of other districts along the way;

September 1999: GP started its service in the industrial city of Khulna. Once
again, a number of other districts came under coverage of GP because of the cell to cell coverage between Dhaka and Khulna. Earlier in September 1999, it introduced the EASY pre-paid service in the local market. It also introduced the Voice Mail Service (VMS) and the Short Message Service (SMS) and other Value Added Services (VAS);

June 2000: GrameenPhone started its services in Sylhet, Barisal and Rajshahi,
bringing all six divisional headquarters under the coverage of its network. The service in Barisal region was started after the microwave link between Khulna and Chittagong was completed;

August 2003: After six years of operation, GrameenPhone has more than one
million subscribers;

November 2005: GrameenPhone continues to being the largest mobile phone
operator of Bangladesh with more than 5 million subscribers;

November 16, 2006: After almost 10 years of operation, GrameenPhone has
over 10 million subscribers. GrameenPhone has built one of the most extensive

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Daffodil International University infrastructures of Bangladesh and is a major contributor to the development of the national economy. GrameenPhone is one of the largest private sector investments in the country with an accumulated investment of BDT 5200 crore up to December 2005. GrameenPhone is also one the largest taxpayers in the country, having contributed nearly BDT 5000 crore in direct and indirect taxes to the Government Exchequer over the years of which is amount, BDT 1670 crore was paid in 2005, BDT 2300 crore was paid in 2006 and more BDT 2580 crore was paid in 2007 alone. GP was also the first operator to introduce the pre-paid service in September 1999. In addition to core voice services, GrameenPhone offers a number of value-added services, in each case on both a contract and prepaid basis. It established the first 24-hour Call Center, introduced value-added services such as VMS, SMS, Fax & Data Transmission Services, International Roaming Service, WAP, SMS - based Push-Pull Services, EDGE, personal ring back tone and many other products and services. GrameenPhone nearly doubled its subscriber base during the initial years while the growth was much faster during the later years. It ended the inaugural year with 18,000 customers, 30,000 by the end of 1998, 60,000 in 1999, 193,000 in 2000, 471,000 in 2001, 775,000 in 2002, 1.16 million in 2003, 2.4 million in 2004, 5.5 million in 2005 with, 13.2 in 2006, and now GrameenPhone has more 1,80,44,240 subscribers up to 5 December 2007. GrameenPhone offers the widest coverage in Bangladesh. The population coverage has increased from approximately 85% in 2005, 90% in 2006 and it is more 97% at 2007. In addition, GrameenPhone also offers EDGE to its subscribers From the very beginning, GrameenPhone placed emphasis on providing good aftersales services. In recent years, the focus has been to provide after-sales within a short distance from where the customers live. There are now more than 600 GP Service Desks (GPSD) all over the Bangladesh and a Customer Manager is covering nearly all subdistricts of 61 districts. In addition, there are more 39 GP Customer Centers (GPC) in all the divisional cities and they remain open from 8am-8pm every day including all holidays (365 days service point). GrameenPhone has generated direct and indirect employment for a large number of people over the years. The company presently has more than 5165 full-time, part-time and

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Daffodil International University contractual employees. Another 1,00,000 people are directly dependent on GrameenPhone for their livelihood, working for the GP dealers, retailers, scratch card outlets, suppliers, vendors, contractors and others. In addition, the Village Phone Program, also started in 1997, provides a good income-earning opportunity to more than 200,000 mostly women Village Phone operators living in rural areas. The Village Phone Program is a unique initiative to provide universal access to telecommunications service in remote, rural areas. Administered by Grameen Telecom Corporation, it enables rural people who normally cannot afford to own a telephone to avail the service while providing the Village Phone operators an opportunity to earn a living. 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 considers its employees to be one of its most important assets. GP has an extensive employee benefit scheme in place including Gratuity, Provident Fund, Group Insurance, Family Health Insurance, Transportation Facility, Day Care Centre, Children’s Education Support, and Higher Education Support for employees, In-House Medical Support and other initiatives.

1.2 THE PEOPLE

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Daffodil International University The people of GrameenPhone are young, dedicated and energetic. All employees are well educated at home or abroad, with an even distribution of males and females and social groups in Bangladesh. They know in their hearts that GrameenPhone is more than phones. This sense of purpose gives them the dedication and the drive, producing the biggest coverage and subscriber-base in the country. GrameenPhone provides equal employment opportunities and recognizes the talents and energy of its employees.

1.3 THE SERVICE

GrameenPhone believes in service that leads to good business development. Telephony helps people work together, raising their productivity. This gain in productivity is development, which in turn enables them to afford a telephone service, generating good business. Thus development and business go together.

1.4 THE TECHNOLOGY

GrameenPhone Global System for Mobile or GSM technology is the most widely accepted digital system in the world, currently used by over a billion people in 172 countries. GSM brings the most advanced developments in cellular technology at a reasonable cost by spurring severe competition among manufacturers and driving down the cost of equipment. Thus, consumers get the best for the least. GrameenPhone is now the leading telecommunications service provider in the country with more than 10 million subscribers as of January 2007. Presently, there about 15 million telephone users in the country, of which, a little over one million are fixed-phone users and the rest mobile phone subscribers. Starting its operations on March 26, 1997, the Independence Day of Bangladesh, GrameenPhone has come a long way. It is a joint venture enterprise between Telenor AS (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. 12

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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. The technological know-how and managerial expertise of Telenor AS has been instrumental in setting up such an international standard mobile phone operation in Bangladesh. Being one of the pioneers in developing the GSM service in Europe, Telenor AS has also helped to transfer this knowledge to the local employees over the years.

1.5 GrameenPhone CORPORATE GOVERNANCE

In the fast-paced world of telecommunications, vibrant and dynamic Corporate Governance practices are an essential ingredient to success. GrameenPhone believes in the continued improvement of Corporate Governance. This in turn has led the company to commit considerable resources and implement internationally accepted Corporate Standards in its day-to-day operations. Being a private limited company, the Board of Directors of GrameenPhone have a pivotal role to play in meeting all stakeholders’ interests. The Board of Directors and the Management Team of GrameenPhone are committed to maintaining effective Corporate Governance through a culture of Accountability, Transparency, Well-Understood Policies and Procedures. The Board of Directors and the Management Team also persevere to maintain compliance of all laws of Bangladesh and all internally documented regulations, policies and procedures. GrameenPhone is a truly transparent company that operates at the highest levels of integrity and accountability on a global standard.

1.6 CORPORATE SOCIAL RESPONSIBILITIES; AN INTEGRAL PART OF GP

GrameenPhone started its journey 10 years back with a believe “Good development is good business”. Since its inception, GrameenPhone has been driven to be inspiring and leading by example, when it comes to being involved in the community. GrameenPhone believe that, sustainable development can only be achieved through long 13

Daffodil International University term economic growth. Therefore, as a leading corporate house in Bangladesh GP intend to deliver the best to their customers, business partners, stakeholders, employees and society at large by being a partner in development.

GrameenPhone defines Corporate Social Responsibility as a complimentary combination of ethical and responsible corporate behavior as well as a commitment towards generating greater good in society as a whole by addressing the development needs of the country.

To interact effectively and responsibly with the society and to contribute to the socio-economic development of Bangladesh, GrameenPhone has adopted a holistic approach to Corporate Social Responsibility, i.e. Strategic & Tactical. Through this approach GP aims to, on the one hand involve itself with the larger section of the society and to address diverse segments of the stakeholder demography, and on the other remain focused in its social investment to generate greater impact for the society. GrameenPhone focuses its Corporate Social Responsibility involvement in three main areas - Health, Education and Empowerment. They aim to combine all their CSR initiatives under these three core areas to enhance the economic and social growth of Bangladesh.

1.6.1

Health

Helping and caring for the community is an essential component of GrameenPhone Corporate Social Responsibility; therefore they endeavor to make a positive contribution to the underprivileged community of Bangladesh by helping in improvement of the health perils in the country as much as possible.

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Daffodil International University Healthcare is still inaccessible for many Bangladeshis. Almost half of the country's population live below the poverty line and cannot even afford basic healthcare. Only 35% of the rural population use adequate sanitation facilities and 72% have access to clean drinking water. Moreover the people of the flood-prone areas suffer from many waterborne diseases.

The major problem in this sector is the significant gap between healthcare knowledge and practice and availability of the healthcare services. Therefore, all possible sources, be it public or private, should mobilize their efforts to make healthcare services available to the people who need it most, and thus help in achieving the MDG goals. GP’s plan is to engage in programs, especially in the rural areas, that will assist in creating awareness about healthcare and healthcare services and help improve the overall quality of life.

Keeping their vision in mind - We are here to help; GrameenPhone aim to extend their contribution to the development of the healthcare system and work to provide a brighter and healthier future for the people of Bangladesh.

1.6.2

Education

Education is the key to prosperity and good life. Every human being should have the opportunity to make a better life for him or herself. One of the Millennium Development Goals (MDG) for Bangladesh is to achieve universal primary education; unfortunately too many children in Bangladesh today grow up without this opportunity, because they are denied their basic right to even attend primary school. The country’s low literacy rate of 41% (2004 UNESCO Report), may indicate that we are far away in pursuit

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Daffodil International University of sustainable development, but at the same time the gradual increase in the adult literacy rate gives us the hope that our nation has the potential to improve in this sector.

The marginalized and disadvantaged groups in general - particularly the rural and urban-poor of Bangladesh - have significantly less access to education than other groups. Though initial enrollment in primary school is high, the completion rate is notably low; approximately 65% (World Bank Report 2004) and a smaller percent of that even complete secondary school. Bangladesh government has provided lot of incentives, such as, free distribution of textbooks in primary schools, secondary stipend program for 100% of the girls, Food for Education project, to encourage and improve the educational sector of the country, which has helped in improvement in the literacy rate. But still we have a long way to go to make our country illiteracy free, thus GP look forward to support this sector, which will eventually help to build a developed country.

Providing access to education, especially for children from disadvantaged backgrounds who might not otherwise get the opportunity, is the main goal of GrameenPhone CSR education initiatives. Many people in Bangladesh still lack the basic technological knowledge and marketable skills, thus GP plan to focus further to develop an educated and skilled workforce through creating opportunity in capacity development; skilled workforce would in turn be able to create and share knowledge and contribute to the economy of Bangladesh.

1.6.3

Empowerment

Lack of empowerment and poverty is a chronic and complex problem for Bangladesh. According to UNDP HDI Report 2006, which measures the average progress of a country in human development, in terms of, life expectancy, adult literacy and enrolment at the primary, secondary and tertiary level, Purchasing Power Parity (PPP), etc., Bangladesh ranks 137th among 177 countries. Moreover, 50% of the total population of Bangladesh lives below the poverty line, defined by less than a dollar a day.

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Some of the major factors contributing to this situation are inequality in income distribution, lack of access to resources, lack of access to information and inadequate infrastructure. The rural people of Bangladesh especially are deprived of these facilities, which is a major issue to break out from the shackles of poverty prevailing in the country. Empowerment is a key constituent towards poverty reduction, and it is a key driver for sustainable economic development. Empowerment is a process of enhancing the capacity of individuals or groups to make choices and to transform those choices into desired actions and outcomes, which in turn helps them to secure a better life. GP acknowledge that development and poverty reduction depend on holistic economic prosperity; therefore their aim is to increase development opportunities, enhance development outcomes and contribute towards development of the quality of life of the people through their CSR initiatives and innovative services. They would like to facilitate empowerment opportunities to the vulnerable people of Bangladesh, so that it enables them to better influence the course of their lives and live a life of their own choice.

1.7 SHAREHOLDERS OF GRAMEENPHONE LTD.

The shareholders of GrameenPhone contribute their unique, in-depth experience in both telecommunications and development. The international shareholder brings technological and business management expertise while the local shareholder provides a presence throughout Bangladesh and a deep understanding of its economy.

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1.7.1

ABOUT TELENOR

Telenor AS is the leading Telecommunications Company of Norway listed in the Oslo and NASDAQ Stock Exchanges. It owns 62% shares of GrameenPhone Ltd. Telenor AS have played a pioneering role in development of cellular communications. It has substantial international operations in Mobile Telephony, Satellite Operations and Pay Television Services. In addition to Norway and Bangladesh, Telenor AS owns GSM companies in Denmark, Austria, Hungary, Russia, Ukraine, Montenegro, Thailand, Malaysia and Pakistan.

1.7.2

ABOUT GRAMEEN TELECOM

Grameen Telecom Corporation, which owns 38% of the shares of GrameenPhone Ltd., is a non-profit company and works in close collaboration with Grameen Bank. The internationally reputed bank for the poor has the most extensive rural banking network and expertise in micro finance. Grameen Telecom, with the help of Grameen Bank, administers the Village Phone Program, through which GrameenPhone provides its services to the fast growing rural customers. Grameen Telecom’s objectives are to provide easy access to GSM cellular services in rural Bangladesh, creating new opportunities for income generation through selfemployment by providing villagers with access to modern information and communication based technologies.

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Share holders of GrameenPhone

38%

Telenor

62%

Grameen Telecom

1.8 MANAGEMENT OF GRAMEENPHONE LTD

The top management of GrameenPhone Ltd carried out their management roles comprehensively over the years. There has been replacement or changes in the positions but all have worked together to increase the overall performance of the organization. Management Team of GrameenPhone comprises of the Managing Director, the Deputy Managing Director and the Divisional Heads of the company.

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ORGANIZATIONAL STRUCTURE

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GRAMEENPHONE Management Team:

• • • • • • • • • •

Mr. Anders Jensen is the Managing Director; Mr. N K A MOBIN, Acting Deputy Managing Director; Mr. Stein Naevdal Larsen, Chief Marketing Officer; Mr. Md. Arif Al Islam, Chief Financial Officer; Mr. Khalid Hasan, Director Regulatory & Corporate Affairs; Mr. Kafil H. S. Muyeed, Director New Business; Mr. Md. Shafiqul Islam, Chief Technical Officer; Mr. Lutfor Rahman, Head of IT; Mr. N K A Mobin; Director Projects; Mr. Emad Ul Ameen, Director Human Resources of

GrameenPhone Ltd.

They equally contributed to GrameenPhone superior leadership, by carrying out their unique roles. They worked well together, respecting each other’s abilities, & arguing openly & without any rancor when they disagreed.

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1.9 DIVISIONS AT GRAMEENPHONE LTD.

GrameenPhone Ltd. has approximately 5000 employees working at different levels of organizational hierarchy. There are 9 functional departments engaged in managing these employees- with the aim to meet organizational objectives. GrameenPhone follows a mix of centralized and decentralized decision making process-where the top management mainly takes all the strategic decisions while the functional managers have flexibility to take decisions by themselves on a day to day basis. At GrameenPhone the Managing Director is assisted by 9 Senior Executives who are heading different departments in the strategic decision making process. The departmental names of GrameenPhone are given below:

Commercial Division DMD’s (Deputy Managing Director) Division Finance Division New Business Division Human Resource Division Information Technology Technical Division Information Regulatory & Corporate Affairs

GrameenPhone follows a 3-layer management philosophy in Bangladesh. These are Directors, Managers and Officers. The CEO is the top most authority of all the levels. Directors are the departmental heads that are responsible for the activities of their departments. Managers have the authority next to directors. These two layers represent the management level of GrameenPhone. Officers are the next persons to stand in the hierarchy list. They are the typical mid-level employees of GrameenPhone organizational

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Daffodil International University hierarchy. These officers are responsible for managing the operational activities and operating level employees.

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1.9.1 COMMERCIAL DIVISION OF GRAMEENPHONE

Head of Function: Mr. Stein Naevdal Reporting To: Mr. Anders Jensen, Managing Director

1.9.1.1 Main Objective
Within the direction from the CEO of GrameenPhone, the Head of Commercial Division/Chief Marketing Officer shall ensure that the Commercial function within GrameenPhone at all times is aligned with and supports the realization of GrameenPhone’s business objectives.

1.9.1.2 Main Responsibilities
Develop, maintain and implement strategies, policies and procedures for the functional areas, which include:

 Marketing  Sales & Distribution  Customer Management  Customer Relationship Management  Village Phone
Monitor and control company-wide commercial activities; Provide support and consulting within scope to all divisions in the company, in order to ensure coordination, business alignment and adaptation of best-practices; Develop and maintain descriptions of departments reporting to the Head of Commercial Division/Chief Marketing Officer, defining their responsibilities and how work is organized between these departments; 24

Daffodil International University Ensure awareness of, and ability to comply with, legal requirements applicable for procurement activities and its governance documents, including SOA-required internal controls and Codes of Conduct; Ensure necessary capabilities company wide to perform the functions responsibilities.

1.9.2 DMD’S DIVISION OF GRAMEENPHONE
Head of Function: Mr. Frank Fodstad Reporting To: Mr. Anders Jensen, Managing Director

1.9.2.1 Main Objective
Within the direction from the CEO of GrameenPhone, the Deputy Managing Director shall ensure that the Deputy Managing Director’s function within the company at all times is aligned with and supports the business objectives.

1.9.2.2 Main Responsibilities
Develop, maintain and implement company strategies, policies and procedures for the functional area, which includes:  Revenue Assurance & Fraud Management  Fiber Optic Network  Legal & Compliance Unit  Administration  Corporate Headquarter Project Monitor and control Deputy Managing Director’s divisional activities; Provide support and consulting to all other functions within scope, in order to ensure coordination, business alignment and adaptation of best-practices;

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Daffodil International University Develop and maintain descriptions of departments reporting to the Deputy Managing Director, defining their responsibilities and how work is organized between these departments; Ensure awareness of, and ability to comply with, legal requirements applicable for the company and its governance documents, including SOA-required internal controls and Codes of Conduct; Ensure necessary capabilities within function to ensure that the organization is able to meet its current and future business objectives.

1.9.3 FINANCE DIVISION OF GRAMEENPHONE

Head of Function: Mr. Arif Al Islam Reporting To: Mr. Anders Jensen, Managing Director

1.9.3.1 Main Objective
Within the direction from the CEO of GrameenPhone, the CFO shall ensure that the Finance & Supply Chain Management function within GrameenPhone at all times is aligned with and supports the realization of GrameenPhone business objectives. The CFO must prepare financial statements with reasonable assurance that statements are not materially misstated at the consolidated group level and for local statutory accounts.

1.9.3.2 Main Responsibilities
Develop, maintain and implement company strategies, policies and procedures for the functional area, which includes:

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Daffodil International University  Treasury  Risk Management  Financial Reporting & Controlling Supply Chain Management  Tax Investor Relations

Monitor and control company-wide Finance & Supply Chain Management activities;

Provide support and consulting within scope, to all other divisions in the company, in order to ensure coordination, business alignment and adaptation of best-practices; Develop and maintain descriptions of departments reporting to the CFO, defining their responsibilities and how work is organized between these departments; Ensure awareness of, and ability to comply with, legal requirements applicable for the functional area and its governance documents, including SOA-required internal controls and Codes of Conduct; Ensure necessary capabilities within the function to ensure that the organization is able to meet its current and future business objectives.

1.9.4 NEW BUSINESS DIVISION OF GRAMEENPHONE
Head of Function: Mr. Kafil H. S. Muyeed Reporting To: Mr. Anders Jensen, Managing Director

1.9.4.1 Main Objective
Within the direction from the CEO of GrameenPhone, the Head of New Business shall ensure that right emphasis is put on community relations, CSR activities and new business based on current and future technological developments and these areas are aligned with and supports the realization of GrameenPhone business objectives.

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1.9.4.2 Main Responsibilities
Develop, maintain, and implement strategies and policies for the areas which include:

 Community Relations  Corporate Social Responsibility activities  New businesses based on current and future technological developments  Strategy processes co-ordination aCM (Customer Manager)s the organization Monitor and control activities within own area;

Develop and maintain descriptions of functions reporting to the Head of New Business, defining their responsibilities and how work is organized; Ensure awareness of, and ability to comply with, legal requirements applicable for this function, including SOA-required internal controls; Ensure necessary capacity, competence and capabilities to perform the function’s responsibilities.

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1.9.5 HUMAN RESOURCE DIVISION OF GRAMEENPHONE

Head of Function: Mr. Emad Ul Ameen Reporting To: Mr. Anders Jensen, Managing Director

1.9.5.1 Main Objective
Within the direction from the CEO of GrameenPhone, the Head of HR shall ensure that the HR function within GrameenPhone at all times is aligned with and supports the realization of GrameenPhone business objectives. The Head of HR shall optimize the human resources in GrameenPhone, through individual performance management and organizational development, as well as nurturing a culture supporting the realization of the vision and values. In order to achieve this, leadership excellence is a key focus area for HR. The units in HR Division include:

    

HR Operations; Recruitment & Selection; HR Development; Health, Safety & Environment Expatriate and Travel Support.

1.9.5.2 Main Responsibilities
Develop, maintain and implement company HR strategies, policies and procedures in order to establish organizational capabilities company-wide to meet current and emerging business needs, which include:  Leadership  Employee Capabilities

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Daffodil International University      Organizational Design Collaboration Recruitment Compensation & Benefits Employee relations and Health, Safety & Working Environment

Monitor and control company-wide HR activities; Provide support and consulting within scope, to all divisions in the company, in order to ensure coordination, business alignment and adaptation of best-practices; Develop and maintain descriptions of departments reporting to the Head of HR, defining their responsibilities and how work is organized between these departments; Ensure awareness of, and ability to comply with, legal requirements applicable for the function and its governance documents, including SOA-required internal controls and Codes of Conduct; Ensure necessary capabilities company wide to ensure that the organization is able to meet its current and future business objectives.

1.9.6 INFORMATION TECHNOLOGY DIVISION OF GRAMEENPHONE

Head of Function: Mr. Lutfor Rahman Reporting To: Mr. Anders Jensen, Managing Director 30

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1.9.6.1 Main Objective
Within the direction from the CEO of GrameenPhone, the Head of IS/IT shall ensure that the Information Security/Information Technology function within GrameenPhone at all times is aligned with and supports the realization of GrameenPhone’s business objectives. The Head of IS/IT shall ensure the realization of the business objectives through delivering services and information with sufficient quality.

1.9.6.2 Main Responsibilities
Develop, maintain and implement company strategies, policies and procedures for the functional area, which includes:  Strategy and Architecture  IS/IT Governance  IT Quality and Risk Management  IT Sourcing (In compliance with Company Procurement Policy) Monitor and control company-wide IS/IT activities to create transparency and facilitate best practice within IT.

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Daffodil International University Provide support and consulting to all divisions in the company, in order to ensure coordination, business alignment and adaptation of best-practices. Develop and maintain descriptions of departments reporting to the Head of IS/IT, defining their responsibilities and how work is organized between these departments. Ensure awareness of, and ability to comply with, legal requirements applicable for the functional area and its governance documents, including SOA-required internal controls and Codes of Conduct. Ensure necessary capabilities within the function to ensure that the organization is able to meet its current and future business objectives.

1.9.7 TECHNICAL DIVISION OF GRAMEENPHONE

Head of Function: Mr. Shafiqul Islam Reporting To: Mr. Anders Jensen, Managing Director

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1.9.7.1 Main Objective
Within the direction from the CEO of GrameenPhone, the Head of Technical/CTO shall ensure that the technical function within the company at all times is aligned with and supports the business objectives. There are five departments within the Technical Division:

    

Planning: The purpose of this unit is to plan the entire GP Telecom network including Core Network Planning, Integrated Network Planning, Service Network Planning, Transmission Planning and Radio Planning. Implementation: The task of the Implementation Department is to build the GP telecom network or execute the plan of the Planning Department in the field. Operation: This department is responsible for running the network. This includes Operation and Maintenance of the network. Network Quality & Performance: The purpose of this department is to monitor and improve Network Quality and Performance. Network Advancement: The purpose of this department is to provide Technology Strategy Planning; adopt new technology considering midterm and long term technology evolution and new business opportunities; technology evaluation and Industry update; and review network plans and architecture for constant renewal.

1.9.7.2 Main Responsibilities
Develop, maintain and implement company strategies, policies and procedures for the functional area, which includes:  Network Planning  Network Expansion and Advancement  Network Operations Monitor and control the Technical functions activities;

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Provide support and consulting to all functions within scope, in order to ensure coordination, business alignment and adaptation of best-practices; Develop and maintain descriptions of functions reporting to the Head of Technical/CTO, defining their responsibilities and how work is organized between these functions; Ensure awareness of, and ability to comply with, legal requirements applicable for the company and its governance documents, including SOA-required internal controls and Codes of Conduct; Ensure necessary capabilities within function to ensure that the organization is able to meet its current and future business objectives.

1.9.8 REGULATORY & CORPORATE AFFAIRS DIVISION OF GP
Head of Function: Mr. Khalid Hasan Reporting To: Mr. Anders Jensen, Managing Director

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Daffodil International University

1.9.8.1 Main Objective
Within the direction from the CEO of GrameenPhone, the Head of Regulatory & Corporate Affairs shall ensure that the Regulatory & Corporate Affairs function within the company at all times is aligned with and supports the business objectives.

1.9.8.2 Main Responsibilities
Develop, maintain and implement company strategies, policies and procedures for the functional area which includes:

 Regulatory & Corporate Affairs  External Relations
Monitor and control Regulatory & Corporate Affairs activities;

Provide support and consulting to other functions within scope, in order to ensure coordination, business alignment and adaptation of best-practices; Develop and maintain descriptions of departments reporting to the Head of Regulatory & Corporate Affairs, defining their responsibilities and how work is organized between these departments;

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Daffodil International University Ensure awareness of, and ability to comply with, legal requirements applicable for the company and its governance documents, including SOA-required internal controls and Codes of Conduct; Ensure necessary capabilities within function to ensure that the organization is able to meet its current and future business objectives;

1.9.9 INFORMATION DEPARTMENT OF GRAMEENPHONE

Head of Function: Mr. Yamin Bakht Reporting To: Mr. Anders Jensen, Managing Director

1.9.9.1 Main Responsibilities
The Department is responsible for:  Maintaining Public Relations;  Maintaining Media Relations;  Publishing GP Newsletters;

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Daffodil International University  Publishing Annual Reports;  Maintaining the content of GrameenPhone website;  Maintaining the content of grameenphone@work Intranet site. The department consists of three people and is headed by a General Manager.

1.10 Current State & Future Direction of GP:

As my discussion shows, GP is doing great in its business. Their market share is significantly high. The mobile telecommunication industry is also growing at a significant pace. But, if we assess the external environment, we find, the path for Grameen Phone is not that smooth. The service of GP is extensively dependent on BTTB (Bangladesh Telephone & Telegraph Board). In many cases, GP did not get full support of the government owned department. E.g. Initially, GP provided connections that were accessible to BTTB land phones. But at one point of time, BTTB stopped to provide anymore support in this regard. At that time GP had to innovate the ‘mobile to mobile’ concept to continue the business growth. So, it has the scope to enhance and strengthen its market position. To do so, they need to put more stress on their policies like efficiency, quality, innovation, and customer responsiveness. If everything goes right, with least risk I can say, GP is headed towards a bright future.

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Project Project Part Part

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2.1 Introduction

Topic of my internship project is “Assessing Customer Satisfaction of Grameen Phone.” I got the opportunity to do my internship at Grameen Phone Ltd. I have been working at Customer Service, Commercial Division. This division consists of 2500 employees. As the name implies, it deals with the customers after the sales occurs. Main activities of this division includes maintaining databases of the customers, preparing the bills, distributing bills, activating new connections, hotline service, collection of bill through different banks all over the country, and the other after sales services. As a member of GP’s Customer Service, my job is to provide different services to our valued subscribers over telephone, which is the hotline service. In other words, my job is to satisfy the subscribers. In my internship project, I have tried to judge the satisfaction level of GP service holders.

2.2 Objectives

This project was designed to accomplish three objectives. From my point of view, these issues are very important find out the gap between expectation and perception of the subscribers and to eliminate dissatisfaction. Through this study, I tried to attain the following objectives: Prime objective of my study was to find out the satisfaction level of GrameenPhone subscribers.

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Daffodil International University As an outcome of the prime objective, I tried to notice the specific areas of dissatisfaction of the GP users. I applied the GAPs Model of service quality to find out both the customer and provider gaps.

2.3 Significance of the Study

From the organization part we came to know that Grameen Phone is the market leader in the mobile telecommunication industry of Bangladesh. Their growth rate is very high. But in this edge of competition, it is very difficult to keep the leading edge intact. Companies need to come up with new ideas to remain competitive. They need to keep their customers satisfied. So, it is very important for GrameenPhone to know whether their customers are satisfied or not. If the customers are not satisfied, GP can specify the zones of dissatisfaction and take necessary actions to remove the dissatisfactions. Hence, I decided to work on this topic.

2.4 Hypothesis

My hypothesis is, “Although GrameenPhone is leading the market of mobile telecommunication industry with a sharp distance, and their customers are not fully satisfied with the company’s services. If GP does not take care of these dissatisfactions and other companies are operating in the market with similar offers, it will be difficult for GrameenPhone to keep the current market share intact.” In my hypothesis, I have first admitted that GrameenPhone is the market leader of the mobile telecommunication industry of Bangladesh. As per the market share data, there

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Daffodil International University is no scope for argumentation on this issue. But I assumed that the customers of GP are not fully satisfied and loyal to GP. My logic behind this assumption was: GP is a highly growing company. It tripled its subscriber base in the year 2000. In this high growth situation, it is very difficult to keep the customers satisfied. Another assumption of my hypothesis was, if GP does not take care of the dissatisfactions and another company comes with similar offer, it will be difficult for GrameenPhone to keep their market share intact. The logic that supported this idea was: I assumed GP’s customers are not brand loyal. They are using GP’s service as they do not have any suitable alternative. So, if a big player form another industry enters this business, it can be challenging for GrameenPhone.

2.5 Methodology

In my study I mainly depended on primary data that was collected through direct survey. I developed a questionnaire that consisted mainly closed-ended questions. There was one open-ended question also. Data collection was done on a random basis. The results are represented through bar charts. My research findings came out through analyzing those data. I also collected data and necessary information by interviewing officials of GP. These can be treated as secondary data. After the analysis part, I have applied the GAPs Model of service quality on my findings. Finally, I came up with my recommendations. 41

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2.6 Customer Satisfaction: (From Theoretical View)
Customer satisfaction is the extent to which a product or service’s perceived performance matches a buyer’s expectations. If the product or service’s performance falls short of expectations, the buyer is dissatisfied. If performance matches or exceeds expectations, the buyer is satisfied or delighted. Expectations are based on customers past buying experiences, the opinion of friends and associates, and marketer and competitor information and promises. Marketer must be careful to set the right level of expectations. If they set expectations too low, they may satisfy those who buy but fail to attract enough buyers. In contrast, if they raise expectations too high buyers are likely to be disappointed. Dissatisfaction can arise either from a decrease in product and service quality or from an increase in customer expectations. In either case, it presents an opportunity for companies that can deliver superior customer value and satisfaction. Today’s most successful companies are rising expectations—and delivering performance to match. Such companies track their customers’ expectations, perceived company performance, and customer satisfaction. Highly satisfied customers produce several benefits for the company. Satisfied customers are fewer prices sensitive, remain customers for a longer period, and talk favorably to others about the company and its products & services. Although the customer centered firm seeks to deliver high customer satisfaction relative to its competitors, it does not attempt to maximize customer satisfaction. A company can always increase customer satisfaction by lowering its price increasing its services, but it may result in lower profits. Thus, the purpose of marketing is to generate customer value profitably. This requires a very delicate balance: The marketer must continue to generate more customer value and satisfaction but not “give away house.” Now, we have a very good idea regarding the importance of customer satisfaction. So, it is also important for the company to know about the satisfaction level of the customers. When any problem is identified, it becomes easier to solve the problem. In the

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Daffodil International University next part of my paper I have focused on the ‘Customer Satisfaction Factors’ of GrameenPhone. That has been followed by my primary research: a survey to find out the ‘customer satisfaction level’ of GrameenPhone.

2.7 Customer Satisfaction Factors of GP

GrameenPhone is a highly growing mobile company. In mobile telecommunication industry, there are direct and indirect factors that influence customer satisfaction. I tried to focus on the most important factors that influence customer satisfaction at GrameenPhone.

2.7.1 Airtime
Airtime is the core offering of GrameenPhone. So, quality of communication, network availability etc. are the most important customer satisfaction factors. Quality of airtime depends on the ratio of subscribers and transmission base stations. If the numbers of subscribers are increased without developing the network, quality of airtime goes down.

2.7.2 After Sales Services
After sales service is one of the very important factors in the mobile telecommunication industry. GP has extensive after sales customer care tools. I would like to focus on these tools one by one:

2.7.3

Hotline

The centralized Call Management Center in Dhaka is manned by trained professionals and is opening round-the-clock, responding to subscribers’ queries from all over the country where GrameenPhone has its coverage. GrameenPhone Ltd has recently introduced a single dedicated hotline number 121 for all of its subscribers to provide instant service. At present there are more than 450 dedicated and energetic employees are working to provide instant over phone service to the subscribers. Call Management Center 43

Daffodil International University is well equipped with state of the art software’s and other important tools through which most of the problems of the subscribers can be solved instantly. Call Management Center remains open 365 days a year and 24 hours a day. Recently GrameenPhone introduced dialect based hotline for the first time in the region, to provide more customized service to its subscribers. Through this innovative service GP subscribers can communicate with the Customer Managers at their own dialect. At present GP provide services through all the major dialects of the country- Chittagong, Sylhet, Rajshahi, Khulna, Barisal and Noakhali.

2.7.4

Interactive Voice Response (IVR)

This is a newly introduced service by GrameenPhone. This is a automated hotline service. GP subscribers need to dial 121 to reach this service. After that s/he can get information regarding bill, usage, credit policy, bank name that receives GP’s bill, and so on by choosing different options. Subscriber needs to pay TK 2 per minute for using the IVR.

2.7.5 GrameenPhone Centre (GPC)
GrameenPhone Center (GPC) is the most recent innovation of GrameenPhone with the aim to provide all kinds of mobile phone related services to its subscribers. For the first time in Bangladesh subscribers will get both SIM and handset related services from the GrameenPhone Centers. So far GrameenPhone introduced 39 well decorated GPC in the country. All these GPC are not only providing after sales services but also working as the main sales channel of the company. Within each GPC there is a separate section allocated for selling and repairing handsets at an affordable cost. GrameenPhone Centers are open from 08:00 AM to 08:00 PM everyday (365 day).

2.7.6

GrameenPhone Service Desk (GPSD)

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Daffodil International University Previously people at the rural areas had to come in the major cities to get customer service, which is a real hassle and time consuming process for them. To solve this problem GrameenPhone introduced Service Desk with a vision to provide service at the rural and remote areas. At present GrameenPhone have total 607 Service Desk around the country through which it provide service at grass root level. All these GPSD remain open from 09:00 AM to 05:00 PM in five days a week.

2.7.7

Customer Communication

The centralized Customer Communication located in Dhaka, handles written requests of subscribers, both verbally and in writing 7 (seven) days a week from 8 AM to 8 PM. Customer Communication deals with all sorts of written complain received through fax, letter by post and e-mail. It also builds relationship with the valued subscribers on a regular basis. The major responsibility of the unit is to maintain relationship with the high users and ensure that the present subscribers are not going to switch to other operator.

2.7.8

Travelers To Customer

“Travelers to Customer” is another recent addition of service in Customer Service Department which is also the first time of its kind in the country. The major responsibility of this unit is to provide service at the customer’s doorstep with the slogan of “Let’s not expect the customers to travel to get the service rather let service travel to the customers”. Currently it’s providing service in the major cities of the country and to the high volume users of GrameenPhone.

2.7.9 Outbound Calling Center
Outbound Calling Center is another addition of innovative service of Customer Service Department. A group of young, energetic and well trained employees are working in Outbound Calling Center and they are responsible to call back the subscriber to get feedback about the service quality. One of the major responsibilities of the unit is to 45

Daffodil International University identify all the dissatisfied customer and try to bring them back so that they stay with GrameenPhone. Moreover the unit is also responsible to provide service to all those subscribers who have repeatedly accessed hotline, with the same kind of problem. In this way outbound calling center plays a major role in holding the existing subscribers.

2.7.10

Corporate Customer Center

The Corporate Customer Center aims to provide quality customer service to the country’s preferential business customers. A professionally trained team is dedicated to provide After Sales Services and Solutions customized to the need of the business customers and initiate pro-active visits as a part of routine contact to look into the needs with an aim to build long-term professional relationships. Their professional customer care team is available to help seven days a week, 365 days of the year - whether for general queries, or to assist with any problems subscribers may possibly face. Their dedicated relationship managers are assigned to provide personalized service right from the beginning of the relationship.

2.8

Conducting a Survey

I developed my questionnaire (enclosed in the APPENDIX) mainly focusing on the customer satisfaction factors of GrameenPhone. There were ten closed-ended questions. I kept one open-ended question to better understand the gap between customers expectation and satisfaction level. My topic of this project was ‘Assessing Customer Satisfaction of GrameenPhone’. As I aimed to assess the satisfaction level, I only surveyed the ‘users’ of GrameenPhone.

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Daffodil International University The sample size was 100. I went for random sampling. But I picked the sample mainly from Dhaka Division. In the next part, I have represented my survey findings.

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2.9 Presenting the Survey Results

1.

I am using GrameenPhone because it is providing best network

coverage
Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 23% 61% 13% 3% 0%

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70%

61%

60%

50%

40%

30%

23%

20%

13%

10%

3%

0%

0% Strongly Agree Neither Agree nor Disagree Strongly Disagree Agree Disagree

Analysis:
Comments Degree Cust. Response Weight Strongly Agree 5 23 115 Agree 4 61 244 Neither Agree nor Disagree 3 13 39 Disagree 2 3 6 Strongly Disagree 1 0 0 Total

100 404

Total sample people:

100

Company Standard :

4

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Survey outcome:

= 4.04 (Survey Outcome = Total Weight / total sample)

So, the difference is

= (4.04 – 4) = 0.04 [Positive]

Resources:
Grameenphone has very strong network coverage over the country. It has more than 6000 BTS (Network tower). There are more than 1500 employees (among the 5000) are directly involved with this concern and more 3500 are involved from the third party.

Causes of efficiency:
1. Subscribers are getting smooth network coverage all over the country 2. More than 6000 BTS ( Network Tower) are available al over the country 3. Grameenphone is providing highest priority on there network coverage 4. GP is providing highest budget on network connectivity purpose. 5. GP is following decentralized network follow-up model.

Recommendation:
Though, we have got positive response after all the variance is not focusing a high attitude on this matter. So, I think GP has some thing to do on it. 1. Need to allocate the Network towers according to volume of users. 2. Need to increase the capacity with up-growing subscribers. 3. Need to give-up equal eyes to the both rural and urban area 4. Need more investment for this concern 5. Arranging some awareness program for the subscribers regarding unnecessary network traffic.

2. I am using GP mobile as it has additional features in comparison to other operators.
Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 19% 37% 29% 15% 0%

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40%

37%

35% 29% 30%

25% 19% 20%

15%

15%

10%

5%

0%

0% Strongly Agree Neither Agree nor Dis agree Strongly Dis agree Agree Dis agree

Analysis:
Comments Degree Cust. Response Weight Strongly Agree 5 19 95 Agree 4 37 148 Neither Agree nor Disagree 3 29 87 Disagree 2 15 30 Strongly Disagree 1 0 0 Total

100 360

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Total sample people:

100

Company Standard :

4

Survey outcome:

= 3.6 (Survey Outcome = Total Weight / total sample)

So, the difference is

= (3.6 – 4) = - 0.4 [Deficit]

Resources:
GP has a lot of additional features with its main telephony service. Some common features are1. EDGE 2. Flexi load Facility 3. Balance Transfer 4. SMS & MMS 5. Bills Pay ( Electricity bill payment facility for Chittaging area) 6. Value Added Services 7. Push Pull Services 8. EISD ( Economic International Call ) 9. GPWAP 10. CUG ( Common user group) 11. Friends and family facility. 12. Voice Mail and Voice SMS 13. Miss call Alert service 14. Welcome tune

Causes of deficit:
1. Subscribers are not getting smooth service due to traffic of server 2. Subscribers are not enough aware regarding all basic services 3. Most of the features are contains different level of tariff

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Daffodil International University 4. All features are not available for all products 5. Some features are not user friendly (Features are English language basis that is quit difficult for uneducated users)

Recommendation:
1. Need to increase the server capacity with the increasing number of subscribers 2. Need to arrange more awareness program regarding those basic features. 3. Need to reduce the tariff of basic features up to a convenient level. 4. All Basic features should be provided to all GP subscribers 5. Need to introduce some flexible system to avail basic features (like GP may introduce Bangla base key word regarding most commonly used features)

3.

The Package price (current) of GP for different packages is

affordable.
Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 4% 49% 13% 23% 11%

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49% 50% 45% 40% 35% 30% 23% 25% 20% 15% 10% 5% 0% Strongly Agree Neither Agree nor Disagree Strongly Disagree Agree Disagree 4% 13% 11%

Analysis:
Comments Degree Cust. Response Weight Strongly Agree 5 4 20 Agree 4 49 196 Neither Agree nor Disagree 3 13 39 Disagree 2 23 46 Strongly Disagree 1 11 11 Total

100 312

Total sample people:

100

Company Standard :

4

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Survey outcome:

= 4.04 (Survey Outcome = Total Weight / total sample)

So, the difference is

= (3.12 – 4) = -0.88 [deficit]

Resources:
GrameenPhone has more six packages for general subscribers and also four special packages considering different circumstance. Here I would like to introduce the packages with its current price-

General Packages:
1. Smile M2M 2. Smile PSTN 3. Djuice 4. Xplore 1 5. Xplore 2 6. GPPP Prepaid(Price tk 150) Prepaid(Price tk 300) Prepaid(Price tk 150) Postpaid Postpaid Postpaid (Price tk 500) (Price tk 1700) (Price tk 500)

Special Packages:
1. Business solution 2. Business solution 3. Village Phone 4. GP Dear the crown subscribers) (Prepaid) (Postpaid) (Postpaid) (Postpaid) (Price is not defend) (Price is not defend) (Price is not defend) (Price tk 150, only for

Causes of deficit:
Though now a day GP is offering a completive price for its packages but subscribers have negative mentality for their previous experience. 1. People are preserving negative past experience regarding this mater. 55

Daffodil International University 2. Other operators are providing comparatively less price for their packages. 3. Other operators are knocking less price concept to the subscribers. 4. Sometimes the forecasters of GP are not taking efficient decisions timely. 5. GP is following Authorized dealership (who are committed to follow some roles and regulations) policy to sale their product.

Recommendation:
1. GP should to arrange some awareness program regarding less price sensitivity. 2. The product distribution system should be more flexible and soft. 3. The forecasters need to be more efficient and market oriented. 4. Price of packages should to reduce up to a margin level of subscribers’ expectation. 5. Need to arrange some program to change the subscribers’ mentality regarding this concern.

4.

I am satisfied with the service (quality of airtime and

network availability) of GP.
Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 11% 46% 23% 13% 7%

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50% 45% 40% 35% 30%

46%

23% 25% 20% 13% 15% 10% 5% 0% S trongly A gree S trongly D isagree 1 A gree Neither A gree nor D isagree D isagree 11% 7%

Analysis:
Comments Degree Cust. Response Weight Strongly Agree 5 11 55 Agree 4 46 184 Neither Agree nor Disagree 3 23 69 Disagree 2 13 26 Strongly Disagree 1 7 7 Total

100 341

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Daffodil International University Total sample people:
100 Company Standard : 4

Survey outcome:

= 3.41 (Survey Outcome = Total Weight / total sample)

So, the difference is

= (3.41 – 4) = -0.59 [deficit]

Resources:
Though, GrameenPhone has good network coverage over the country with more 6000 BTS (Network tower) and a good number of manpower for this concern after all it has got quit low degree for this concern.

Causes of deficit:
1. Subscribers are not getting smooth network support all over the country 2. Capacity is not sufficient considering the total number of subscribers. 3. Network traffic is increasing due to unusual and more voice call tendency. 4. Lack of concentration on this concern 5. Different frequency for urban and rural area.

Recommendation:
1. Need to allocate the Network capacity according to the density of subscribers. 2. Need to increase the capacity with up-growing subscribers. 3. Need to give-up equal eyes to the both rural and urban area 4. Need more investment for this concern 5. Need to arrange some awareness program to reduce unnecessary practice (Likemiss call tendency) on network.

5.

Whenever I want to make GP connectivity, I can reach

then.
Strongly Agree Agree Neither Agree nor Disagree Disagree 27% 57% 11% 5%

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Strongly Disagree 0%

57% 60%

50%

40%

27% 30%

20% 11%

10%

5% 0%

0%
Strongly Agree Neither Agree nor Disagree Strongly Disagree Agree Disagree

Analysis:
Comments Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree Total

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Degree Cust. Response Weight 5 27 135 4 57 228 3 11 33 2 5 10 1 0 0

100 406

Total sample people:

100

Company Standard :

4

Survey outcome:

= 4.06 (Survey Outcome = Total Weight / total sample)

So, the difference is

= (4.06 – 4) = .06 [Positive]

Resources:
GrameenPhone has very strong network coverage over the country. It has more than 6000 BTS (Network tower). There are more than 1500 employees (among the 5000) are directly involved with this concern and more 3500 are involved from third party.

Causes of efficiency:
1. Most of the Subscribers are getting smooth network coverage all over the country 2. More than 6000 BTS ( Network Tower) are available al over the country 3. GrameenPhone is using both 900 and 1800 GSM Band for its network 4. GP is providing highest budget on network connectivity purpose. 5. GP is following decentralized network follow-up model.

Recommendation:
Though, we have got positive response after all the variance is not focusing a high attitude on this matter. So, I think GP has some thing to do on it. 1. Need to allocate the Network towers according to density of users. 2. Need to increase the capacity with up-growing subscribers. 3. Need to give-up equal concentration on both rural and urban area 4. Need more investment for this concern 5. GP should to increase more GSM 1800 Band for its network purpose

6.
Strongly Agree

After sales service of GP is satisfactory.
28%

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Agree Neither Agree nor Disagree Disagree Strongly Disagree 53% 13% 4% 2%

60%

53%

50%

40% 28% 30%

20%

13%

10%

4%

2%

0%
Strongly Agree Neither Agree nor Disagree Strongly Disagree Agree Disagree

Analysis:
Comments Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree Total

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Degree Cust. Response Weight 5 28 140 4 53 212 3 13 39 2 4 8 1 2 2

100 401

Total sample people:

100

Company Standard :

4

Survey outcome:

= 4.01 (Survey Outcome = Total Weight / total sample)

So, the difference is

= (4.01 – 4) = .01 [Positive]

Resources:
GrameenPhone has a good arrangement for after sales service. There are more than 604 GPSD (GrameenPhone) and 67 GPC (GrameenPhone center) all over the country and 121 dedicated 24 hrs hot line for all subscribers.

Causes of efficiency:
1. Subscribers are getting smooth after sales service all over the country 2. GrameenPhone has a lot of after sales service point for its subscribers 3. There are more than 2000 employees are directly involve with this concern 4. GrameenPhone also provides home service for its crown subscribers. 5. GrameenPhone also has a 24 hrs dedicated hot line for all subscribers.

Recommendation:
Though, we have got positive response after all the variance is not focusing a high attitude on this matter. So, I think GP has some thing to do on it. 1. GPSD should have on service 7 days in a week 2. Need to open more GPSD considering first point of after sales service. 3. Need to reduce the complexity for after sales service 4. Need friendly attitude of the customer managers towards the subscribers 5. Need to provide smooth access of 121 hot line to gate over phone service

7.

GP hotline is very helpful in meeting my queries and other

needs.

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Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 9% 26% 24% 23% 18%

30% 26% 24% 25% 23%

20%

18%

15% 9% 10%

5%

0%
Strongly Agree Neither Agree nor Disagree Strongly Disagree Agree Disagree

Analysis:
Comments Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree Total

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Degree Cust. Response Weight 5 9 45 4 26 104 100 3 24 72 2 23 46 1 18 18

100 285 4

Total sample people:

Company Standard :

Survey outcome:

= 2.85 (Survey Outcome = Total Weight / total sample)

So, the difference is

= (2.85 – 4) = -1.15 [Deficit]

Resources:
GrameenPhone is offering a 24 hrs and 365 days hot line service for its subscribers and there are more that 800 employees are providing this hot line service. Different local dialect are (like- Chittagong, Barishal , khulna, Rajshahi, Khulna, Noakhali and sylhet) available here beside the Bangla and English for its subscribers flexibility. It also has a healthy IVR system to get the automated updated regarding GP

Causes of Deficit:
1. Subscribers are getting smooth access in 121 hot line. 2. To get the 121 Hot line service there is a charge tk 2/min (Without vat) 3. Some times subscribers are hanged on queue though it consumed charge. 4. Sometimes subscribers didn’t gate proper service by over phone 5. Because of IVR system users need to press different option to reach 121 support.

Recommendation:
The 121 hot line is most commonly used dedicated hot line for the subscribers of GrameenPhone. But users are not satisfied over its support. So GrameenPhone could improve in the following side to get better customer response. 1. Need to remove the complexity of 121 over phone hot line response. 2. Tariff for 121 hot line should to reduce up to a convenient level. 3. Need to reduce the complexity for after sales service 4. Need friendly attitude of the customer managers towards the subscribers 5. Need to provide smooth access of 121 hot line to gate over phone service

8.
Strongly Agree

Tariff of GP connection is affordable.
3%

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Agree Neither Agree nor Disagree Disagree Strongly Disagree 18% 14% 37% 28%

40% 35%

37%

28% 30% 25% 18% 20% 15% 10% 3% 5% 0% Strongly Agree Neither Agree nor Disagree Strongly Disagree Agree Disagree 14%

Analysis:

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Neither Agree nor Disagree 3 14 42

Comments Degree Cust. Response Weight

Strongly Agree 5 3 15

Agree 4 18 72 100

Disagree 2 37 74

Strongly Disagree 1 28 28

Total

100 231 4

Total sample people:

Company Standard :

Survey outcome:

= 2.85 (Survey Outcome = Total Weight / total sample)

So, the difference is

= (2.31 – 4) = -1.69 [Deficit]

Resources:
Presently GrameenPhone is offering different level of tariff plan for different packages. Now a day this tariff plan is continuing in between TK 0.25 to TK 2.00. Here I would like to disclose the tariff plan of Smile and Xplore(most commonly used package) Smile: TK 0.60 TK 1.20 TK 2.00 Xplore: TK 0.60 TK 1.50 12:00am to 6:00am 9:00 am to 4:00 pm 12:00am to 7:00am 7:00 am to 12:00am Only for GP No Any number Only for GP No Any number

Except the pre-mentioned time, Any number

Causes of Deficit:
1. Subscribers are preserving negative tendency for previous higher call rate 2. In general GrameenPhone does not provide the lowest tariff of tariff margin 3. GP also has a tendency not to provide the lowest call rate to its subscribers 4. There does have any awareness advertisement regarding its tariff plan 5. Sometimes GP retrieves its promotional less tariff to previous tariff.

Recommendation:
Tariff has a great sensitivity for the economic users. So GP may consider the following1. GP may provide such margin tariff thus others can’t make revise advantages 2. GP might arrange awareness program regarding its current tariff. 3. The mind of brand managers should to be subscribers oriented. 4. GP should to design their tariff according to market expectation. 5. GP should to offer a unique tariff plan for any no. (All GP & other operators)

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9.

GrameenPhone is very sincere in providing me quality

service on a continuous basis.
Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 6% 22% 19% 34% 19%

34% 35%

30% 22% 19% 20% 19%

25%

15%

10%

6%

5%

0% Strongly Agree Neither Agree nor Disagree Strongly Disagree Agree Disagree

Analysis:
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Neither Agree nor Disagree 3 19 57

Comments Degree Cust. Response Weight

Strongly Agree 5 6 30

Agree 4 22 88

Disagree 2 34 68

Strongly Disagree 1 19 19

Total

100 262

Total sample people:

100

Company Standard :

4

Survey outcome:

= 2.62 (Survey Outcome = Total Weight / total sample)

So, the difference is

= (2.62 – 4) = -1.38 [deficit]

Resources:
GrameenPhone has different types of arrangement to prove continuous base service to its subscribers. Like more 600 GPSD (at different thana level), more 70 GPC (in district level). 121 hot line (24 hrs, 365 days), a strong IT and Technical team.

Causes of Deficit:
1. Subscribers are getting smooth network service all over the country 2. Subscribers are not happy over tariff and 121 connection concern 3. GPC, GPSD & 121 hot line takes more time to solve a problem 4. Sometimes subscribers need to maintain queue to get the service. 5. Concentration level to all subscribers has fall due to increase the no of subs

Recommendation:
A positive customer reaction is highly appreciable for a service providing company. But a GP is holding a very low marking for this area. So GP may do the following1. GP should to concentrate on its subscriber’s expectation 2. Should reduce the complexity of its service related concern. 3. Make sure the capacity of quality service with increasing the no subscribers 4. GP should to ensure a minimum time to solve a particular problem. 5. Need to increase a friendly attitude to solve the problems

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10.

If another company comes up with the same features &

facility, then still I will remain with GP.
Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree 12% 23% 29% 26% 10%

29% 30% 26% 23%

25%

20%

15%

12% 10%

10%

5%

0% Strongly Agree Neither Agree nor Disagree Strongly Disagree Agree Disagree

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Analysis:
Comments Degree Cust. Response Weight Strongly Agree 5 12 60 Agree 4 23 92 Neither Agree nor Disagree 3 29 87 Disagree 2 26 52 Strongly Disagree 1 10 10 Total

100 301

Total sample people:

100

Company Standard :

4

Survey outcome:

= 3.01 (Survey Outcome = Total Weight / total sample)

So, the difference is

= (3.01 – 4) = -.99 [deficit]

Resources;
Here, features & facility contain the available network facility tariff, basic features for particular packages & after sales services

Causes of Deficit:
1. General tendency of users to find something from a new product. 2. Some users believe to break the monopoly tendency of GP 3. Some users believe that new operator would offer more facility 4. Some users also believe that new operator will apply lower tariffs. 5. GP does not have a strong policy to make loyal its subscribers.

Recommendation:
Customer loyalty is great concern for a service oriented company. But GP didn’t gate a good marking regarding this concern. More 36 people has swing tendency if they got enough facility by other operator. So, GP may do the following to increase the loyalty. 1. GP has to increase the facility according to the market expectation. 2. Tariff need reduce up to market completive level. 3. Should to gear up the service level by which people become satisfied by it. 4. Have to arrange more promotional offer frequently thus subscriber become loyal 5. Need to increase a friendly attitude toward the subscriber suggestion.

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3.

Analysis of survey

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3.1

Applying

the

GAP

Model

of

Service

Quality

Customer perceptions are subjective assessments of actual service experience. The following figure correspond to two concepts: customer expectations and customer perceptions--that play a major role in service marketing. Customer expectations are the standards of or reference points for performance, against which service experiences are compared, and are often formulated in terms of what a customer believes, should or will happen.

Expected Service GAP Perceived Service Figure: The Customer GAP The sources of customer expectations consists of market controllable factors (such as pricing, advertising, sales promises) as well as factors that the marketer has limited ability to affect (innate personal needs, word-of-mouth communications, competitive offerings). In a perfect word, expectations and perceptions would be identical: customers would perceive that they receive what they thought they would and should. Customer satisfaction is well depended on how successfully the companies can reduce or close the gap, as shown in the above figure. In broad sense, the process of closing the customer gap can be subdivided into four ‘company gaps,’ discrepancies within the organization that inhibit delivery of quality service.

Company gap 1: Not knowing what customers expect Reasons: • Inadequate marketing research orientation. 72

Daffodil International University • Lack of upward communication. • Inefficient relationship focus.

Company gap 2: Not selecting the right service designs and standards Reasons: • Absence of customer-driven standards. • Inadequate service leadership. • Poor service design. Company gap 3: Not delivering to service standards Reasons: • Deficiencies in human resource policies. • Failure to match supply and demand. • Customer not fulfilling roles. Company gap 4: Not matching performance to promises Reasons: • Ineffective management of customer expectations. • Over promising. • Inadequate horizontal communication. Coming back to my project, I tried to find out the four company gaps of GrameenPhone, considering the data that I have attained through survey and secondary research.

GrameenPhone Company Gap 1: Not knowing what customers expect 73

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GrameenPhone does extensive marketing research on a continuous basis. Moreover, there is always bottom-up communication, which enables GP to better understand what customers expect; because the low-end officers deal the customers and they better understand what customers expects. So, I reach to the conclusion that GrameenPhone has no ‘company gap 1’ at present.

GrameenPhone Company Gap 2: Not selecting the right service designs and standards From the survey results and my personal observations, I found few areas that I identified as gap 2. • Billing rate of GrameenPhone is very high in the context of Bangladesh. Although it is not playing disturbing role at present, it can emerge as a problem if any competitor reduces its billing rate keeping other features intact. • There is a high demand for BTTB accessible mobile phones. But currently this product is not offered by GrameenPhone. As the competitors are offering this product, GP is loosing its market share.

• Improper quality of airtime and network availability is also a problem for GrameenPhone. But as the experts give opinion, it is not abnormal in a network which is going through a massive development process.

GrameenPhone Company Gap 3: Not delivering to service standards

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Daffodil International University This gap is also significant at GrameenPhone. This gap is very important, because it occurs when a company sets a standard but not deliver as per the standard. From my observation, some areas of gap 3 are: • It takes too much time to reach the hotline at the pick hours (Roughly 06 PM to 11 PM). As the subscribers need to pay TK 2.30 per minute even when they are waiting in the Que., it is a source of dissatisfaction for them. • It is expected to get good and polite behave from the hotline officers. But, as found from the survey results, the subscribers of GrameenPhone do not get appropriate behavior form the hotline. This can be an alarming problem for GP. Because it is very easy to lose a customer in a competitive market. • Most of the GP subscribers are not well educated. They are not equipped enough to handle the mobile phone appropriately. This lack of knowledge of the subscribers creates problems for GrameenPhone. They assume their inability as GP’s poor service. GrameenPhone Company Gap 4: Not matching performance to promises GrameenPhone does not ‘over promise’ to its subscribers. It also has a good horizontal communication between its important functional divisions like Sales & Marketing, Commercial Division, and Technical. Still, I find some gaps under these criteria: • GrameenPhone is not successful to build a positive and friendly image in their subscribers’ minds. Subscribers think that GP is not sincere about solving their needs. Moreover, GP management is not successful enough to educate their subscribers properly. These factors are increasing the gap 4 according to my observation.

3.2 Recommendations to close the GAPs

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Daffodil International University I designed my recommendations aiming to close the gaps between customers’ expectations and perceptions regarding GP service. My recommendations are: • GrameenPhone should provide all the connections with access to BTTB. It is perceived as an essential feature by a significant portion of the subscribers. • GP should earn flexibility to be able to reduce the bill, if necessary. But currently they should not reduce the billing rate as no one is offering lower than them. • There should be more GPC at the southern side of the capital city.’ • Network development should be steady. GP should never sell connections excess to its capacity. • Capacity of the hotline should be increased in the pick hours. • The Customer Managers of the hotline should be well trained to improve their behavior and quality of service. • Different programs should be taken to educate the subscribers regarding different essential features of mobile phone. • GrameenPhone should take extensive program to build a positive image among their users. In this process they should try to eliminate the misconceptions of the users regarding GP.

E.

Limitations of the Study

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Daffodil International University The basic strategy of GrameenPhone is widening their market through their emerging country-wide network. As a result of this strategy, the subscribers are from different segments or from different income levels. Moreover, the subscribers are from all over Bangladesh and scattered all over the country. But the sample that I used to conduct my survey was mostly from Dhaka division. So, it was not a perfectly representative sample. Moreover, it was not possible to get all required internal information of the company as these are treated as confidential company information.

F.

Conclusion

77

Daffodil International University I would like to start the conclusion part by restating the hypothesis of my study. My hypothesis was, “Although GrameenPhone is leading the market of mobile telecommunication industry with a sharp distance, and their customers are not fully satisfied with the company’s services. If GP does not take care of these dissatisfactions and other operators in the market with similar offers, it will be difficult for GrameenPhone to keep the current market share intact.” From the analysis of the survey results and GAPs Model, it is clear that GP’s subscribers are dissatisfied with different services of the company. Moreover, the analysis indicated that the subscribers of GrameenPhone are not loyal toward the company. They clearly pointed that other operators are providing similar offer, they are not hesitating to switch. So, my hypothesis is proved as a valid one. But there was a condition in my hypothesis: ‘If GP does not take care of these dissatisfactions...’. Therefore, I recommended some courses of action. My observations make me believe that If GP follows these recommendations; it will enable them to achieve a sustainable distinct competitive advantage and to run smoothly with loyal subscribers & market leadership.

G.

BIBLIOGRAPHY

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1. Earl Naumann and Kathleen Giel, Customer Satisfaction Measurement and Management 2. V. A. Zeithmal and Mary Jo Bitner1996, Service Marketing, International Edition, The McGraw-Hill Companies, Inc., New York. 3. T. A. J. Nicholson, Measuring Consumer Service and Managing Delivery. 4. James Brian Quinn, Jordan J. Baruch and Penny Cushman Paquette1987, Technology in Services, Scientific American 5. Image Guide Book & Intranet of GrameenPhone 6. Divisional Annual report (Customer Management Division)-July-2005 7. Charles W.L.Hill and Gareth R. Jones, Strategic Management 8. Cooper & Schindler, Business Research Method 9. Newsletter of GrameenPhone Limited 10. Web Site: www.grameenphone.com 11. Annual Report 2001-06, GrameenPhone Ltd

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A Sample Questionnaire

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Do you have any other mobile? Yes No

Sex: Occupation:
<1 1 2 3 4 If yes, please name the other operator(s):

For How long (years) you are using GP? (Please Circle)

This questionnaire has been designed to conduct a research on ‘Assessing Customer Satisfaction of GrameenPhone’ to fulfill the course requirement for Internship, under the BBA Program of Daffodil International University. Your active participation will enable us to conduct the research work successfully.

(The scale rates from strongly agree to strongly disagree) 1. I am using GrameenPhone because it is providing best network coverage 5 5 5 5 5 5 5 4 4 4 4 4 4 4 3 3 3 3 3 3 3 2 2 2 2 2 2 2 1 1 1 1 1 1 1 2. I am using GP mobile for its additional features in comparison to other operators. 3. The Package price of GP for different packages is affordable. 4. The Quality of after sales service is satisfactory. 5. Whenever I want to have a GP connection, I can get it. 6. After sales service of GP is satisfactory. 7. GP hotline is very helpful in meeting my queries and other needs. 8. Tariff of GP connection is affordable. 5 5 GP. 5 4 3 2 1 Additional Comment(s): 4 4 3 3 2 2 1 1 9. GrameenPhone is very sincere in providing me quality services on a continuous basis. 10. If another company comes up with the same features, I will still remain loyal towards

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