Nagad-

Introduction-
Nagad was launched on March 26, 2019 by Prime Minister Sheikh Hasina. Since
then, it has been adding value to the digital lives to the citizens. From the very
beginning, it kept cost efficacy in mind and for that, they opted for the best
technology available, which gave them a very positive result. Nagad has introduced
a number of innovations that gave it a solid boost in customer acquisition and
transaction volume. Within less than two years it has become the second-best digital
financial service operator in the country with a 30 per cent share of the total
subscribers.
5 changes in marketing
 Thinking of small and medium traders, 'Nagad' is reducing the transaction
cost by 6 TK per thousand instead of 20 Tk. At present, all the people of
different professions in Bangladesh are benefiting by trading in 'Shadhin'

 The payment for Covid-19 test fees through Nagad has received a huge
response as the mobile financial arm of the Postal Department has made it
easier for the people to carry out the transaction hassle-free and by
maintaining social distancing. Nagad is the only operator that is providing the
service to the people during the pandemic .It was started earlier August last
year, allows people to get tested for the disease at the diagnostic centre at a
payment of just BDT 100 through Nagad’s bill pay platform.

 Since July,2020 Nagad has started providing 7 tk commission to agents for

any cash in and 5.25 Tk for cash outs. Thus, the Nagad merchants are
earning more as their profit has been increased.

 In order to promote digital business, Nagad is giving huge cash-back offers

and other attractive facilities to both buyers and sellers. To encourage digital
purchase and nurture an overall digital culture, Nagad has recently adopted a
tag line- "Everything is possible with Nagad”.

 In April,2020 ,Nagad has slashed its advertisement budget to decrease

transaction costs. It also implemented many steps for giving its customers a
seize of relief such as deducting no charge for cashing out of first Tk1000 and
taking no settlement charge for essential commodity and medicine.
Marketing terms-
 Segmentation-
Market segmentation is the process of dividing a target market into smaller,
more defined categories. It segments customers and audiences into groups
that share similar characteristics such as demographics, interests, needs, or
location. Nagad follows a mass marketing segmentation where the company
follows an undifferentiated marketing program. It also segments its markets
 demographically where it focuses on occupation, income. Students, business
entrepreneurs, high and low level job holders, all types of service holders are
the demographically segmented customers for Nagad. High, middle and low
social class people and people with different attitudes and lifestyles who are
looking for value against their payments for particular services are the
customers of Nagad.
 Safety and security needs-Once physical needs are satisfied, individual safety
takes precedence. Safety and security needs include personal security,
financial security, and health and well-being.  Nagad is simply fulfilling this
level of needs of their customers. The people who are in low-paid jobs , they
always want to minimise their cost. And No other company has given the
opportunity to send money instantly at such a lower cost. there is no extra
cost because there is no charge for sending money on Nagad network. Other
operators charge Tk 5 for every transaction. Moreover, Nagad has been
providing the opportunity to the people to avail the Covid-19 test at the
lowest cost in the country and the service discourages the use of printed
notes, thus helping limit the spread of the virus . All of these are focusing
to fulfil customer’s safety and security needs .
 Consumer’s cognitive personality factors:

While Verbalizers prefer promotional messages containing a lot of written,

textual, verbal information On the other hand Visualizers are more
receptive to pictorial images. In Nagad’s advertising they have focused on
both personalities but mostly on Verbalizers. There are many
advertisements where they are meeting the users and asking them about
their experiences and also explaining them how they could maximize their
income and minimize the cost by using their service.

 Selective attention:

Selective attention is consumers’ heightened awareness of stimuli that

meet their needs or interests and minimal awareness of stimuli irrelevant to
their needs. Nagad’s marketing campaigns highlight lowest cost rate for
transactions, Easiest way to open an account , getting more internet data
without recharging much. All of these can draw the consumers attention
very easily as most of the people have these needs and Nagad is
providing the best solution .

 Positioning-

It establishes a specific image for a brand in the consumer’s mind in relation

to competing brands. Nagad introduced the electronic-Know Your Customer
(e-KYC) process, the first of its kind in Bangladesh. However, As most of the
users do not have a Smartphone and cannot access the e-KYC facilities,
Nagad's team developed a new facility in partnership with mobile phone
carriers so that a basic phone user can also avail the same facilities to open
an account. Also, The "Send Money" service of Nagad is also applicable for
users who do not have an existing Nagad account. This innovation of Nagad
 has been well recognized by both local and international agencies and has
been copied by other players in the market as well. Thus , they have not only
succeeded in positioning their company but also proved their tagline which
says – “Everything is possible with Nagad”

 Value and retention focused marketing-

This model mainly focuses to develop a good relationship with customers and
it takes initiatives to maximize the customer value in the long run. Nagad
Utilizes the understanding of customer needs to develop offerings that
customers perceive as more valuable than competitors’ offerings. For
example- no-hassle in registering, lowest transaction rate etc. Thus , they are
maximizing their customer value by their offers.
 Societal Marketing-
Societal Marketing emphasizes on social responsibilities and suggests that to
sustain long-term success, the company should develop a marketing strategy
to provide value to the customers to maintain and improve both the customers
and society’s well being better than the competitors. Nagad is not only
providing financial service but also contributing to poverty alleviation and thus
making the economy stronger.Nagad distributed PM-provided financial
assistance among 17 lakh jobless families. Nagad’s wallet is being used to
transfer money from Visa and MasterCard as part of the move to keep people
at home.The salaries and allowances of two lakh garment workers are being
distributed through the platform. Also, Nagad donated Tk 60 lakh to the Prime
Minister’s Relief and Welfare Fund as part of social responsibility.

Conclusion-
The MFS sector is in the growth stage as the services have been accepted by
customers, and companies are striving to increase market share. Also,
The market now is jam-packed, new start-ups will be crushed by competition
unless they are backed by huge venture capital funding and provide a better
or unique service.
By now, everyone in the payments industry are well aware of the growth
digital payments have endured and continue to experience during the Covid-
19 pandemic. This shifting demographic will surely be responsible for bringing
lots of behavioral changes in the market overall. Unbanked People ratio,
emergence of Generation- Z, Mobile penetration, smart handset adaptation
and behavioral shift and favorable regulatory support will be the key influential
of MFS sector of Bangladesh in coming days. 
Price war between these players already begun in the Industry whereas the
referral, cash back discount % and freebies is the main medium used by the
players; bKash- Rocket- Nagad promoting wallet payment no service charge /
Cash back offer. If we observe and study the market closely it’s clear that
company with good base like; bKash and Rocket are pulling customer
towards app/wallet with different offers. On the other hand Nagad’s primary
focus is on OTC lowest Cash out fee and different govt incentive to pull
customer towards Nagad’s OTC channel. In App space bKash is dominating
the industry with best UI/UX, innovative features, offers, promotion and
different new service integration. Nagad is also focusing on the new service /
partner onboarding and different types of disbursements at the time of
 pandemic. However, the popularity of rocket has been decreasing as they
have not come up with many strategies during the pandemic to grab the
attention of the customer base.

Conclusion
• The MFS sector is in the growth stage as the services have been accepted by
customers, and companies are striving to increase market share. Also,the
market now is jam-packed, new start-ups will be crushed by competition
unless they are backed by huge venture capital funding and provide a better
or unique service.
• Price war between these players already begun in the Industry whereas the
referral, cash back discount % and freebies are the main medium used by
these companies. If we closely observe and analyze the market, we can see
that companies with a strong base, such as bKash and Rocket, are attracting
customers to their apps/wallets through various offers. Nagad, on the other
hand, focuses on OTC with the lowest cash-out fee and various government
incentives to encourage consumers to use Nagad's OTC channel.
• Moreover, bKash is the market leader in the app space, with the best UI/UX,
creative features, deals, promotions, and various new service integrations.
Nagad is also concentrating on new service/partner onboarding as well as
various forms of disbursements during a pandemic. However, since Rocket
did not come up with several tactics to grab the attention of the consumer
base during the pandemic, Rocket's popularity has been declining.
• everyone in the payments industry are well aware of the growth digital
payments have endured and continue to experience during the Covid-19
pandemic. This shifting demographic will surely be responsible for bringing
lots of behavioral changes in the market overall. Unbanked People ratio,
emergence of Generation- Z, Mobile penetration, smart handset adaptation
and behavioral shift and favorable regulatory support will be the key influential
of MFS sector of Bangladesh in coming days.