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Group Profile BackBenchers Group Leader Makame Mahmud Members Mohammad Rashed Bin Enam Fazle Rabbi Khadem

Taufique Haque Ashique Md. Moshiur Rahman S.M Mehedi Hasan ID 167 ID 01 93 113 171 177

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Acknowledgement Thanks to Allah. Writing this report appeared to be a great experience to us. It added a lot to our practical knowledge while we were working on this report. This report is one of our memorable experiences because we were asked to formulate a full marketing plan for a renowned company. We owe profound gratitude to Professor Zakir Hossain for giving us the opportunity to develop our creative abilities. We are immensely obliged to all group members, without them it would be an easy task and who guided us in making this report in time. Whatever we have learnt from them and this marketing plan report has put indelible impression on our mind. It is our conviction that this learning experience will always be a source of help in our practical life and professional career. Thanks to all.

Executive Summary
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The telecom industry has grown and evolved at an incredible pace for the last 20 years, dramatically changing the way people communicate and transforming everyday life along the way. Mobile phone penetration is approaching 50% globally, with some mature markets surpassing 100% penetration. Mobile broadband subscribership has topped 200 million worldwide. And the rollout of 3G networks in emerging markets means there is the potential for mobile broadband subscribers to outnumber wire line broadband subscribers within the next decade. This is an exciting—and demanding— time to be a device manufacturer, a service provider or an application developer. Innovation is vibrant and opportunities abound, but competition is ferocious and leaves no room for poor decisions. In this report we tried to be innovative in deciding marketing tactics and strategies.

Grameen Phone (GP) is going to launch 3 revised versions of packages to meet the overall customer demand and hold market share in mature market. Before renovating our packages we surveyed general people, students, businessmen and SME (Short and Medium Enterprise) traders to suggest what’s best for them. In our new packages we introduced packages for indigenous people of hill traces titled “ADHIBASI”. We are also planning to introduce smart packages for students and businessmen. This will offer handset plus student/ business packages at a much lower price. This is mainly to attract the attention of our young and student subscribers. In this report we discussed all relevant topics for covering a formal report. This report include brief introduction of Grameen Phone and its strategies to gain the market share and all its depth analysis which we think should be consider necessary to analysis of such a big company. By our evaluation we have found that Grameen Phone is lacking some activities which are mostly its communication to its customers. At the end of this report we provide implementation of strategies for Grameen Phone.

Introduction

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Grameenphone, widely known as GP, is the leading telecommunications service provider in Bangladesh. With more than 20 million subscribers (as of June 2008), Grameenphone is the largest cellular operator in the country. It is a joint venture enterprise between Telenor and Grameen Telecom Corporation, a non-profit sister concern of the internationally acclaimed microfinance organization and community development bank Grameen Bank. Telenor, the largest telecommunications company in Norway, owns 55.8% shares of Grameenphone, Grameen Telecom owns 34.2% and the remaining 10% owns by public. Grameenphone was the first company to introduce GSM technology in Bangladesh). It also established the first 24-hour Call Center to support its subscribers. With the slogan Stay Close, stated goal of Grameenphone is to provide affordable telephony to the entire population of Bangladesh.

MARKETING MIX

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Marketing Mix is the set of controllable tactical marketing tools the firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its product. The many possibilities can be collected into four groups of variables known as the “four Ps”: product, price, place, promotion. Figure shows the particular marketing tools under each p. Product Variety Quality Design Features Brand Name Packaging Services Price List price Discount Allowance Payment period Credit terms Target Customers Intended Positioning Promotion Advertising Sales proportion Public relation Personal selling Place Channels Coverage Assortments Locations Inventory Transportation

Marketing Mix Product Product means the goods and services combination the company effect that offers to the target market for attention, acquisition, use, or consumption that might satisfy a want or need. Price is the amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service.

Price

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Place

Place includes company activities that make the product available to target consumers.

Promotion Promotion means activities that communicate the merits of the product and persuade target customer to buy it.

Grameenphone Product Mix A product is anything that can be offered to a market and that is potentially valued by a target market for the benefit or satisfactions it provides, including objects, services, organization, places, people and ideas. As in a service providing business Grameenphone provides different types of service in its market as its products. In telecommunication business coverage and quality is more important than the number of product or service offered. With its best coverage and good quality Grameenphone has become the number one mobile operator in Bangladesh. Grameenphone has categorized its products in two types. These are 1. Standardized and 2. Customized Products.

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Standardized Product

Standardized Product also has been divided into two types: Pre-Paid and Post-Paid.

Pre-Paid

The brand name of prepaid products is as follows: GP Youth, GP Aadhibasi and General.

General (Prepaid Standard)

General Standard prepaid allows consumers to make and receive ISD and NWD call in all telecom operators.

GP Youth and GP Aadhibasi (Mobile to Mobile)

GP Youth and GP Aadhibasi Mobile to Mobile allows its consumers to make and receive call from any mobile.

Postpaid

Xplore

Xplore is the brand name of post paid product of Grameenphone. It is categorized in two types: Xplore Package 1 and Xplore Package 2. Both of these Post-paid products has BTTB (Local, NWD, ISD and Economy ISD) connectivity, Flexible Credit Policy, Wide collection of value added service (SMS, EDGE, Welcome Tune, Voice Mail, Voice SMS) and International Roaming facility.

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Customized Product “Business Solution” is provided as a customized service to different medium and large organization and Professionals. This customization allows interesting call and sms charge among the member of the organization, fax and internet service within the organization branch. The customized service of one organization is never told to other or disclosed. Separate Strategic Business Unit (SBU) is responsible for the success of each of this product. As the way, this organization has proved that SBU is important for the success of a product in its market.

Different types of value added services are provided with these products as product feature.

Value Added Services With Grameenphone’s VAS, consumer can use mobile phone for many other purposes than making voice calls. With Grameenphone’s VAS, consumer can use mobile phone to:
• • • • • • •

Send and receive text messages, picture messages, voice messages Download ring tones, logos, wallpapers Obtain news updates, cricket score updates Browse the Internet and also send and receive e-mails Transfer data and send fax Participate in competitions and vote for opinions Health line services.

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Branding The name or names that identify a company’s products can be very important in positioning them. The brand name distinguishes a product from competitor’s products. A strong brand identity creates major competitive advantages. A brand that is recognized by buyers encourages repeat purchases. Grameenphone is successful in its products branding. All most every prepaid mobile phone user is aware about its “Smile” prepaid package and business consumers are aware about “Business Solution”. This Branding images comes from good quality of Grameenphone’s products as well as its high promotion activities. Corporate branding places primary emphasis on building brand identity using the corporate name. Grameenphone has become a corporate name in telecommunication business in Bangladesh. Corporate branding offers the advantage of using one advertising and sales promotion program to support all of the firm’s products. And it is often found in Grameenphone advertisements. Corporate branding has become a branding strategy because the product offering is relatively narrow in telecommunication business. Products Life Cycle A company’s positioning and differentiation strategy must change as the product, market environment and competitor’s strategy change over time. Product life cycle (PLC) is the course of a product’s sales and profits over its lifetime. It involves five distinct stages: product development, introduction, growth, maturity and decline. All products have a limited life and profits rise and fall at different stages of the product life cycle.

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All of Grameenphone’s products are in maturity stage. Grameenphone hopes that this will continue for other few years. Different features and value added service will be included over time to time with the products to maintain the maturity of the product.

Grameenphone’s Strategic Analysis of Existing Products Because we are going to evaluate and rebrand our existing products we must consider the following steps. Grameenphone regularly evaluates the performance of its product. This evaluation of the performance of the product portfolio provides its management with diagnostic information to guide its strategies for new products, product modification, and product elimination. But the strategic analysis of existing products requires tracking the performance of the products in the portfolio, as shown below:

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For tracking product performance Grameenphone’s management first establish the criteria and levels of performance for gauging product performance. These include both financial and non financial factors. Because of the various demand and cost interrelationships among products, an information system is established to measure how well a particular product is doing. The purpose of this tracking system is to maintain a product review process that will help to spot problem products or products features. Grameenphone’s management uses the diagnosis to help select a strategy for eliminating the problem. Action includes adding new products, cost reduction, product improvement, marketing strategy alteration or product elimination. • Product life cycle analysis

The length of product life cycle is shorter in telecommunication business. So in a few years Grameenphone’s products moved from its introduction in to the growth stage and it is now in maturity stage. This first movement through the product life cycle also creates the need to alter the cycle by introducing new products or products feature. • Product portfolio analysis

Grameenphone’s strategic analysis of the products portfolio determines if each product is measuring up to management’s minimum performance criteria, and assesses the strength and weaknesses of the product relative to other products in the portfolio. Portfolio grids highlight differences among products. After identifying the relative attractiveness and business strength of the products in the portfolio, a more comprehensive analysis of specific performance factors may be appropriate, including: • Profit contribution. • Barriers to entry. • Sales fluctuations. • Extent of capacity utilization • Responsiveness of sales to prices, promotional activities, service levels, and other influences. • The nature of technology (maturity, volatility, and complexity). • Alternative production and process opportunities.

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Several of these factors are included in the grid analysis when composite grid dimensions are used.

Situation Analysis Market Summary Grameenphone posse’s good information about the market knows a great deal about the common attributes of the most valued customer. Before launching its experienced and prompt sell and marketing force observed the market carefully and better understood who is served, what are their specific needs and the way to communicate with the customers need and demand. Market Needs Grameenphone is providing a wide range of services for its valued customers. The company seeks following benefits that are important for its customers: Quality Service Grameenphone is providing quality service to the consumers. The customers don’t like the network problem and slow networking system. Grameenphone recruits high professional employees and experts to make the network available for the customers. It is the company which expands its network all over the country within the shortest period of time. Grameenphone is committed to its customer about the quality service.

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Call Centers The valued customer can solve the problems over mobile phone dialing 121. It has also customer care service all over the country mainly in the city areas. But the centers are too limited to meet the huge demand. Now at this Grameenphone is expanding its customer care centers and upgrading its quality. Grameenphone is committed to meet the customer demand and problem as soon as possible. Service at Low Price Grameenphone is committed to provide quality service at a lowest price. Over the years GP provided services at a low price and that’s why GP is the #1 telecom service provider in Bangladesh.

BCG Growth Matrix of Telecom Industry Boston Consulting Group Matrix (BCG) developed this model to determine the strengths of a company’s SBU’s as well as to define the strength of the competitors. Here we tried to show the BCG Matrix for Overall Telecom Industry in Bangladesh. High Market Share High Growth STARS Grameenphone Low Market Share Question Marks Warid (Airtel)

Low Growth

Cash Cows Banglalink, Robi

Dogs: Teletalk

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Here we can see that, GP is now the market leader and also has all the requirements to be a “STAR”. There is a question whether Warid Telecom will be a STAR or Cash Cow after being acquired by Bharti Airtel recently. Because of the reputation of Airtel, GP will surely face a fierce competition from Warid Telecom. On the other extreme, it’s TeleTalk. This company created a lot of hope among consumers but it failed to satisfy consumer’s expectations. There is an availability of cash cows in the telecom industry with big names and expectations- Banglalink and recently rebranded Robi (Previously known as Aktel).

Hierarchy details of marketing and sales department

Consumer Profile Analysis
Market Segmentation: For getting the maximum market share and respect of the product in the minds of the consumer, as per our observation and market survey we have concluded that Grameenphone’s market segmentation is based on two points. 1. Geographic Segmentation 2. Demographic Segmentation Geographic Segmentation: The company has divided its geographic segmentation in several regions. First they have the segmentation of a whole country and for Dhaka city, they divided its areas into different regions. So that it could be easy for the company to work efficiently on its supply chain management. Demographic Segmentation: Grameenphone’s packages aren’t a supreme quality product that only the high class uses. The packages are for all. There is no age, sex, income and any other kind of limitation on use of the product. The product is for all. Anyone can use the product as per need.

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Targeting Strategy: Everyone can use any package that GP is offering. There are some variations that can be made throw our observation but not from the company. Grameenphone comes in four different packages. These four are targeting different types of people and lifestyles.

Packages Youth Package: This package is targeted mainly for young generation who wants to be in touch with group members and friends, surf the web and wants a favorable price plan for them. In order to satisfy the growing market we choose to serve efficiently. This package offers highest number of fnf’s, lowest call rate and 20 MB free GPRS usage. Aadhibasi Package Grameenphone is trying to enter the niche market of aadhibasi’s. Aadhibasi’s are deprived of using cellular services due to security reasons. But now GP gets the permission to enter into the market with Government cellular TeleTalk. This package offers affordable price plan, fnf, and different call rates for different times and low cost SMS service. Business Solutions This package is for Businessmen. This package offers all the state of art technologies to serve the daily needs of busy persons. This package also offers corporate packages, WIS technology, voice mail, handset plus package etc.
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General This package is for all. Offers affordable and competitive price plans compared to other operators.

Consumer Profiling Analysis GP’s packages are for all with some restrictions because GP has to abide by the rules imposed by GoB. Package Youth Age Group 18-22 years 18- Max Related to people of/ Use Students Sex Not Applicable Not Applicable Income Not Applicabl e Not Applicabl e Applicabl e Educatio n Not Applicable Not Applicable Applicable

Aadhibasi

All Aadhibasi

Business Solutions

35- Max

Businessm Not en and Applicable organizatio ns All Not Applicable

General

18- Max

Not Applicabl e

Not Applicable

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PEST ANALYSIS
Pest analysis has four main components from which we analyze the company or product under these circumstances. This analysis includes these factors • Political Factor • Economical Factor • Sociocultural Factor • Technological Factor Political Factors 1. Regulatory Initiatives The actions like Level Playing Field Regulation, out of court settlement case and all related activities in this that affect the organization’s performance which is very important for any organization to remain in on-going competition. 2. Governmental Decisions Government decisions like Telecom Regulation, Issuance of Mobile Operator license and decrease and increase in Tax rates also affect the Overall performance. 1= Strongly Significant 2= Significant 3= Neutral 4= Not very significant 5= Not Applicable

Political Factors Regulatory Initiatives Governmental Decisions Laws and 1 2 3 4 5 Regulations Note: Bold number will be considered as selected. 1 2 3 4 5 1 2 3 4 5

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Economical Factor Short term and long term state of trading should be considered in Bangladesh. Inflation rate was controlled by the Bangladesh Bank (BB), this authority have a strict eye on our economical issues. But besides this we have high increasing rate of unemployment as well as increasing level of poverty. These days Bangladesh has double figure interest rate. The price of Dollar increased and reached up to the BDT 70. Keeping all these situations into the consideration the Grameenphone decreases its calls rates. Now Grameenphone gives the most attractive packages for its customers. So economic factors include following the following things.

1= Strongly Significant 2= Significant 3= Neutral 4= Not very significant 5= Not Applicable Economical Factors Inflation and 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 Interest Rate Unemployment Rate Increasing Poverty Rate Note: Bold number will be considered as selected
Sociocultural Factors

During the formation of marketing strategies Grameenphone look a lot of consumer behaviors and social culture factors which influence the buying behavior of the GP’s product. In this context GP look various consumer behaviors and buying pattern of culture. So in the view of successful marketing strategy Sociocultural factors influence very much. So it involves the way how consumer think and feel and how they interpret GP. 1= Strongly Significant 2= Significant 3= Neutral 4= Not very significant 5= Not Applicable Socio-cultural factors Consumer 3 4 5
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Buying behavior Work life Quality Workforce Diversity

1

2 2 3 3 4 4 5 5

1 2 1

Note: Bold number will be considered as selected

Technological Factors In Bangladesh companies have technology by which they can compete in the industry and now there is usage of heavy investment for building and upgrading the infrastructure of telecom organizations.

1= Strongly Significant 2= Significant 3= Neutral 4= Not very significant 5= Not Applicable Technological Factors Technological Advancement Cost involve 1 1 2 2 3 3 4 4 5 5 in Technology Implication of Technology Note: Bold number will be considered as selected 1 2 3 4 5

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SWOT Analysis SWOT analysis tries to find out the strengths, weaknesses, opportunities and threats of a particular company. Grameenphone’s SWOT Analysis is as follows: STRENGTHS 1. 2. 3. 4. 5. 6. Superior quality Better customer relationship Extra features and services Committed and efficient staff Strong financial base Products innovations ongoing 7. Good reputation among customers 8. Good packages according to the target market 9. Management is rational and understanding the situation 10. Low price as compared to quality provided WEAKNESS

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1. 2. 3. 4. 5. 6. 7. 8.

OPPORTUNITIES A developing market Mergers, joint ventures or strategic alliances Could develop new products Extension to overseas Decline of major competitors Technologically better environment New launches More customers after prelaunch

THREATS 1. 2. 3. 4. 5. Emerging companies in market Unstable political conditions New companies in market High public expectations Low prices of competing brands

SERVICES Basic Services: Caller Line Identification (CLI): This service enables you to identify callers and answer calls with discretion. Call Hold and Call Waiting: Handle two calls at a time with your Warid phone. You can be on one call while network will alert you about another incoming call. You can put the first call on hold while you answer the second call. Call Divert: Whether you are unable to take a call, driving outside the national coverage area, traveling abroad or busy, you can divert call to another number. F & F numbers: Enjoy special tariffs for special numbers (F&F) of your choice 24 hours a day on both pre-paid and post-paid connections. Business Hour rate for Business Solutions: Experience cost effective tariffs during your busiest time of the day. Make your calls at lower rates from 9am till 6 pm. Closed User Group (CUG) rate for BS: The Closed User Groups (CUG) feature gives you lower call rates when you make calls within your defined company connections. Certain conditions apply for this feature.
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International Roaming: You can get a connection designed with extended roaming service; Grameenphone has agreements with more than 115 countries worldwide so you are always available at your own number while traveling abroad. Take the privilege of availing the service with zero security deposit as a Business Solutions subscriber.
Messaging Services Short Messaging Services (SMS): With SMS, you can be as discreet or as creative as you like. Either way, sending a message is quick, reliable, and confidential and if you want to be Great Fun!

Voice SMS: Save time and personalize your message through a voice SMS. This service provides you the flexibility to record it up to 120 seconds of audio – so even if your desired number is unreachable, your message will reach out live! MMS (multimedia messaging): The MMS service provides you the take pictures, customize it with animation, music, video clips and send it across the globe within seconds. Cell e-mail: Send emails without a computer. With cell e-mail, you have the facilities to e-mail any GP number through an SMS and email any PC across the globe. SMS plus: Stay updated through SMS plus – the service allows you to update and receive information on daily sales (or any user defined updates) through SMS reporting. SMS banking: Enjoy hassle-free account updates from renowned banks like Standard Chartered Bank, BRAC Bank, Bank Asia, etc.

SMS information service: When you can’t find the time to check up on the latest news, share market information, currency exchange status or directory information, our SMS information service can update you. Mobile profiling: Enhance your corporate profile by installing your company logo and corporate tune as ring-tone on all employee phones.

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Internet and Data Services Get Internet access on your mobile phone – your extended gets mobility and access everywhere you go. High Speed Data Service: Grameenphone’s high speed mobile coverage, powered by EDGE, lets you enjoy a series of services like e-mailing, downloading, and browsing. If you move out EDGE coverage the phone automatically switches to GPRS, ensuring you connection without any interruption. Moreover, your EDGE-enable phone functions as a wireless data modem when you connect it to any laptop. Mobile data transfer for BS: You can easily transfer data to share among your colleagues, access servers when moving in a remote area, and even connect to the Internet from your own PC by using our mobile network. Mobile Fax for BS: It’s just like having your own traveling office! All you need is a computer notebook, your business solutions mobile phone, a cellular data card and a connector. You are ready to send faxes as well as retrieve it from any available fax machine. Mobile Internet: With this service you can access a number of mobile Internet sites such as yahoo mail, hotmail, google, msn, for news services, travel information, sports updates and much more. Mobile E-mail: Our mobile e-mail is designed such that you are never far from your business. Access your office e-mail, corporate address book, and view business appointments. Mobile email lets you use your mobile as you would your computer. Wireless Intranet Service (WIS): Connect all your computers and EDGE-enable mobile devices anywhere in the country with your intranet. Enjoy all the benefits of securely sharing data within your company LAN and save communication costs like never before. Call the Key Account Manger assigned to your company from Business Solutions to avail the service.

GP Internet GP internet gives you to browse the Internet on your mobile phone and laptop anywhere you are. So, whenever you are on the move and want to look for information on the Internet, simply setup the Internet connection from your GPRS/ WAP enabled handset. GP Menu Thanks to state of the art SIM technology, your GP SIM comes with a special GP Menu.
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This menu offers a bundle of services. Using this menu you can send email from your handset, download ring tones. Set GPRS/WAP settings, get latest weather forecasts etc. Missed Call Alert Missing an important business call when your mobile runs out of charge? Need to turn your phone off when attending an important meeting? Your phone may need to be switched off for many reasons. Stock Information The latest updates of the Dhaka and Chittagong Stock Exchange are now in your palm. You can set your own stock portfolio in the Stock information service and get regular update of the portfolio anytime you want. You can also receive alert when the stock prices reaches your pre-set desired level. Business SMS Send SMS to your clients, employees and business partners all at a time. Business SMS is a web based SMS broadcasting application through which you can send, manage and schedule SMS to single and/or multiple recipients, among Grameenphone subscribers. It allows instant and convenient communication - you can create your own message recipient group that accommodates up to 10,000 contacts; receive message delivery reports and also use SMS scheduler to preset any SMS to be delivered at a future time.

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Competitor Analysis 1. 2. 3. 4. Banglalink Airtel Robi Teletalk

Banglalink

Banglalink is the second largest cellular service provider in Bangladesh after Grameenphone. As of November, 2009, Banglalink has a subscriber base of 12.99 million. It is a wholly owned subsidiary of Orascom Telecom. Banglalink had 1.03 million connections until December, 2005. The number of Banglalink users increased by 257 percent and stood at 3.64 million at the end of 2006, making it the fastest growing operator in the world of that year. In August, 2006, Banglalink became the first company to provide free incoming calls from BTTB for both postpaid and prepaid connections. On August 20, 2008, Banglalink got past the landmark of 10 million subscriber base. Banglalink offers: 1. 2. 3. 4. High speed data service. WAP data service. Multimedia messaging service. Offer real VPN system for corporate clients. 5. Offers TNT incoming and outgoing. 6. Offers one of the cheapest prepaid plans in the country by tariff. 7. First introduced Call Block system in Bangladesh 8. First introduced query service for farmers “Jiggasha” 9. Offers credit if balance runs out. 10. Offers internet package with internet modem.

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11. Offers instant load.

Robi (Previously Known as Aktel)

Axiata (Bangladesh) Limited (formerly known as TM International (BD) Limited) is a joint venture between Telekom Malaysia Sdn. Bhd. (70%) and NTT DoCoMo (30%). Robi formerly known as Aktel is the third largest mobile phone operator in Bangladesh in terms of revenue and subscribers (8.59 million as of February 2009). In early 2008 Robi slipped from the second position to the third after facing fierce competition from Banglalink. Robi (formerly known as Aktel) boasts of the widest international roaming service in the market, connecting 315 operators across 170 countries. It is the first operator in the country to introduce GPRS. AKTEL uses GSM 900/1800 MHz standard and operates on allocated 12.8MHz frequency spectrum. Robi offers following services: 1. Offers fundamental prepaid packages. 2. Offer GPRS at low price. 3. Offer sending SMS in Bengali to subscribers. 4. Moderate tariff rate. 5. High opportunity to be a competitive after signing partnership with NTT DoCoMo and rebranding.

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Warid Telecom Warid Telecom International Ltd. is a GSM-based cellular operator in Bangladesh. Warid was the sixth mobile phone carrier to enter the Bangladesh market, and launched commercial operations on May 10, 2007. Warid Telecom International LLC, an Abu Dhabi based consortium, sold a majority 70% stake in the company to India's Bharti Airtel Limited for US$300 million. Bharti Airtel Limited will take management control of the company and its board, and will relaunch the company's services under its own Airtel brand. The Bangladesh Telecommunication Regulatory Commission approved the deal on Jan 4, 2010. On July 19, 2007 Warid Telecom announced in major dailies of having achieved one million subscribers in the first of 70 days of operation. As of December, 2009 Warid has secured 2.99 million subscribers and is ranked fourth among the six operators. Warid offers:
1. Offers NGN or Next-Generation Technology- a future-proof architectural system

2.
3. 4.

5.

which ensures optimum utilization of frequency and enhances speed and quality of both voice and data services. Competitive in case of FnF rate. Offers bonuses starts from spending TK 5 at a time. Offers monthly bonuses also. Expanded its network to five more districts raising total number of districts under Warid coverage to 56. Now 64 districts under Warid network coverage with 1750 BTS. Change of ownership may turn this company into a high profile competitor for Grameenphone.

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Citycell (Pacific Bangladesh Telecom Limited) is the first mobile communications company of Bangladesh. It is the only CDMA network operator in the country. As of 1 March, 2008, Citycell's total mobile subscriber base is 1.56 million, up 137 per cent or 680,000 from two years ago, giving it the best growth rate of the company till date. Citycell is currently owned by SingTel with 45% stake and the rest 55% owned by Pacific Group and Far East Telecom. By the end of 2007 Citycell had refurbished its old brand identity and introduced a new logo and corporate identity; the new logo is very reminiscent of the old logo. However the slogan has remained unchanged "because we care". As of July, 2008 Citycell has 1.67 million subscribers. Citycell offers: 1. 2. 3. 4. 5. 6. CDMA Services High speed internet service named “Zoom” internet with “Zoom” modem. Competitive price plan. Offers CDMA handsets at low price. Currently has the cheapest phone+connection tariff at 1399 taka. Instant load

Teletalk Bangladesh Ltd TeleTalk (Teletalk Bangladesh Ltd) is a GSM based state-owned mobile phone company in Bangladesh. TeleTalk started operating on 29 December, 2004. It is a Public Limited Company of Bangladesh Government, the state-owned telephone operator. TeleTalk provide GPRS internet connectivity. Teletalk is the first operator in the country that gave BTTB (now BTCL) incoming facility to its subscribers. The mission statement of Tele Talk is "Desher Taka Deshey Rakhun" ("Keep your Money in your Country") TeleTalk is the 6th largest mobile phone operator in Bangladesh with 0.98 million subscribers as of October, 2008. Teletalk offers:

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1. Instant Load. 2. Internet package (WAP) via modem.

Analyzing the Pricing Situation of GP:

Price Elasticity:

It is the percentage change in the quantity demanded when price changes, divided by the percentage change in the price. GP has gained high price elasticity in the market.

Non-price factors:

The Gold holders pay a high amount of money in buying to get the high facility. • Cost Analysis:

• Product cost provides essential information for pricing decisions. To analyze cost, GP uses the following steps:

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Competitor Analysis:

Aktel is the major competitor of GP as it is consistent in its rates and facilities and gain a most part of the market shares although Banglalink has more promotional activities and call charge, they have not been able to hold the market yet. GP fixes its competitor on the basis of market share. They fix price in keeping pace with the competitors’ price and their probable responses to an alternative price strategies.

Distribution Channels of Grameenphone
There are three types of distribution channel used by GP which are following: • Distributor’s Channel • Corporate Channel • Direct Channel • Franchise selling
Distributor’s Channel

Distribution channels are more than that simple collections of firms tied together by various flows. They are complex behavioral systems in which people and companies interact to accomplish individual, company and channel goals. Distributors are also working for selling GP’s product. Distributor sells GP products to the retail stores. GP wants to cover 30000 to 40000 shops and retail stores in Bangladesh. Because time is money GP want that their customers get product at the door step. These distributors are working on behalf of GP. They provide GP products at different retail stores and shops. GP feels it is important to provide products with utmost to convenience to the customers. GP is on mature stage, they are using intensive distribution network. For the channel as a whole to perform well, each channels role must be specified. Grameenphone uses both traditional and vertical marketing distribution channels.

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Conventional Distribution Channel

Vertical Marketing System

Producer Wholesaler Retailer

Consumer

Corporate Channel
In corporate selling GP is on top. GP introduced innovative services to satisfy business customers. GP usually conducts post-paid packages for different company’s employee. GP also provides vehicle tracking systems for corporate customers.

Franchise Selling
GP is providing their brands to ultimate consumers through franchises. It has a strong network of franchises all over the Bangladesh. Most of the franchises are situated at
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Dhaka and Chittagong. In franchises GP brands are sold and commission is given to franchisee. The franchisee works according to the requirements of GP. In order to provide best services to their customer’s GP monitor the working of franchisees time to time. Franchisees sell GP brands directly to the ultimate consumer or they can appoint their own dealers in order to save the product. So for a GP customer it is easy to get connection at any time from everywhere.

Grameenphone Promotional Mix Grameenphone uses promotional activities that communicate the merits of the product and persuade target customers to buy it. Grameenphone can succeed to acquire more than 10 million customers as of December 2006 not only providing good service but also using high frequency promotional activities. Grameenphone uses most of the promotional tools to give message for its customers on the new product & existing product and product features. Grameenphone must do more than make good productthey have to inform customers about product benefits and carefully position products in consumers’ mind. To do this Grameenphone promotes the promotion tools are:
Grameenphone Promotional tools

Advertising

Sales Promotion

Public Relation

Personal Selling

Newspaper Television Radio Magazines Newslette r Internet

Price packs Cash Refund Offers Prizes Patronage Award Premium Price Offs

Publications Events News Sponsorships Public service activities Identity Media

Inside Sales Force

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Grameenphone Advertising process: Any paid form of nonperson presentation and promotion of ideas, goods or services by an identified sponsor. Grameenphone advertising can introduce the company and the products. If the product embodies new features, advertising can explain them. Advertising can remind customers of how to use the products and reassures them about their purchase.

Grameenphone Advertising Objectives:

Grameenphone uses advertising as a promotional tool to make a communication task to be accomplished with a specific target audience during a specific period of time.

Grameenphone Advertising objectives Informative advertising Telling the market about a new product Suggesting new uses for a product Informing the market of a price change Explain how the product works Describing available services Building a company image Persuasive Advertising Building brand preference Encouraging switching to Grameenphone

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Changing customer’s perception of product attributes Persuading customer to purchase now Persuading customer to receive a sales call Reminder Advertising Reminding consumer that the product may be needed in the near future Reminding consumer where to buy it

Grameenphone Advertising tools:

Grameenphone uses different types of media to acquire different types of objectives. To select media depend on the target audience, product characteristics, message characteristics and cost. The advertising tools that grameenphone uses as a media to communicate with the existing and potential customers are:

o Newspapers

Newspaper covers all sorts of information about grameenphone’s product. It mainly covers the informative and reminder advertising.

Target audience Literate people.

Message characteristics Flexibility, high believability

Duration Short life

Cost Lower

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o Television

Television is an effective media for good mass-market coverage. Television telecasts messages about new product and it is mostly used for persuasive advertisement.

Target audience All types of people but teenagers influences more

Message characteristics

Duration

Cost High

High attention, high reach, high Long life clutter

o Radio

Within a lower cost, Grameenphone broadcast their massage through radio. It is a better way for persuasive advertisement.

Target audience All types of people but

Message characteristics

Duration

Cost Lower

Audio presentation only but usage Relatively mass and cover high geographical short life

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teenagers influences more.

area.

o Magazines

An effective media that Grameenphone uses as a promotional tool to achieve the customer’s awareness about Grameenphone and its product. It is an effective media for informative and persuasive advertisement.

Target audience Middle and Upper-income audience.

Message characteristics

Duration

Cost Medium

High-quality reproduction, long life credibility and prestige.

o Newsletters
Grameenphone publishes newsletter regularly to inform existing customer as well as potential customer about company’s recent activities and offer. Target audience Loyal consumers and interest persons Message characteristics Very high selectivity, full control. Duration Short life Cost Relatively low cost

o Internet
Internet performs effective promotional tools grameenphone advertising. It gathers all sort of information about grameenphone.

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Target audience Internet browser

Message characteristics High selectivity, interactive possibilities.

Duration Long time still update

Cost Relatively low cost

Grameenphone Sales promotions Process: Grameenphone uses sales promotions that consist of a diverse collection of incentive tools, mostly short term, designed to simulate quicker or greater purchase of particular products or service by consumers or the trade.

Grameenphone Sales Promotion Objectives:

Sales promotion tools vary on their specific objectives. Grameenphone uses sales promotion to acquire broader promotion objectives:

Grameenphone Sales promotion objectives For consumer Encouraging purchase of large sized units. Building trail among nonusers Attracting switchers away competitors’ brand For retailers Persuading retailers to carry new items Encouraging stocking of related items Offsetting competitive promotions Building brand loyalty Gaining entry into new retailers outlets For the sales force Including encouraging support of a new product Encouraging more prospecting

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Marketing Strategies of GP
GP has divided its segmentation and strategy division into five segments on the basis of their characteristics. Markets consist of buyers and buyers differ in one or more ways. They may differ in their wants, resources, locations, buying attitudes and buying practices. The core concept behind companies using marketing segmentation concept is to divide large homogeneous markets into smaller segments that can be reached effectively and efficiently with products and services that satisfy needs, wants, desires and trends of certain segment. Characteristics that govern segmentation and strategy development in Telecom industry Specifically mobile services according to a certain segment are:
➢ Age

➢ Educational background ➢ Gender ➢ Income ➢ National, regional or other geographical areas of origin ➢ Social class ➢ Religion ➢ Culture ➢ Behaviors ➢ Population ➢ Tele density in area to be segmented So according to these above mentioned factors GP divide its marketing strategy into three segments which are: ➢ Prepaid Segment 1. Youth

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2. Aadhibasi 3. General ➢ Business & Corporate Segment ➢ Post-paid Segment

Prepaid Segment

New Prepaid Price Plans
Grameenphone brings you a new prepaid connection only at BDT 250 with a bonus talk time of Tk 200. You will get a bonus talk time of Tk 50 instantly after recharging. This connection, gives you the freedom to choose amongst the three exciting offers – Youth, General and Aadhibasi. Special packages for new prepaid connections Youth Package: Grameenphone prepaid connection comes with this pre-activated package where you will be able to talk to any operator number at a low, flat rate of Tk 0.65. You can also send SMS at Tk . 5/SMS to any operator (GP/ others) number. Time 24 Hours 24 hours GP-GP Tk. 0.50/min Tk. 0.5/SMS Tk. 0.35/min 20 MB GP-Other Operators Tk. 0.65/min Tk. 0.50/SMS

Voice call SMS 7 FnF

Free GPRS Use/monthly

Aadhibasi Package: This package is only available for Aadhibasi people around Bangladesh. Aadhibasi offers as follows: Time Morning Time: (8 am-12pm) Day Time: (12pm-4pm) Evening Time: (4pm-12 am) Night time (12am-8 am) GP-GP Tk. 0.90/min Tk. 0.49/min Tk. 1.25/min Tk. 0.49/min GP-Other Operators Tk. 1.25/min Tk. 1.49/min Tk. 1.49/min Tk. 0.99/min

Voice call

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3 FnF (Voice call) SMS SMS (FnF)

24 Hours

Tk. 0.49/min Tk. 1.00/SMS Tk. 0.50/SMS

Not Applicable Tk. 1.00/SMS Not Applicable

This package gives you the privilege of calling 3 FnF numbers at Tk 0.49 and sending SMS at Tk 0.5 ( GP-GP, GP-other operator at Tk 1/SMS)

General Package: This package with the highest number of F&Fs allows you to talk to your near and dear ones at the lowest rate. This package gives you the privilege of calling 7 FnF numbers at Tk 0.49/min. You can calls to all other numbers (Other than the seven FnFs) are BDT 0.99 per minute. SMS rates are BDT 0.50 per SMS to FnF numbers and BDT 1 to other GPGP and other operator numbers. Time 24 Hours 24 Hours GP-GP Tk. 0.49/min Tk. 0.99/min Tk. 1.00/SMS Tk. 0.50/SMS GP-Other Operators Not Applicable Tk. 0.99/min Tk. 1.00/SMS Not Applicable

7 FnF (Voice call) Voice Call SMS SMS (7 FnF)

Post-paid Package & Business Solution

Tariff and line rent
xplore Postpaid has come up with a very attractive and competitive tariff.

GP-GP

Other Mobile

F&F

BTCL (local/NWD)

SMS Charge

4pm-12pm 24 Hours Tk.1.30/mi n 12pm-4pm Tk.1.30/min

4 F&F Incoming: Free F&F: Tk.0.50 Tk.0.49/min

Outgoing: Tk. GP and other local 1.30/min operators: Tk.1 International: Tk.2.0 0

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Tk. 0.49/min

Line Rent: Tk.50/month (This fee too will be waived if the subscribers' monthly airtime usage exceeds BDT 450) BTCL Incoming is absolutely free for Xplore :
• • •

1 sec pulse from 1st minute onwards for all numbers except F&F 60 sec pulse from 1st minute onwards for F&F NWD calls: BTCL's Peak (8am - 10pm) & Off-peak (10pm - 8am) rate will be applicable for BTCL charge All figures are excluding VAT. 15% VAT will be applicable.

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