An Assignment
An Assignment
On
Evaluation of Marketing Strategies of Mobile Phone Operators in Bangladesh
Submitted to:
Submitted by:
Batch: 40th
This report is a part of the requirement for completing the course ‘Marketing
Management’. The objective behind this report is to grasp a deeper
understanding of the present telecommunication industry in Bangladesh.
All the telecommunication companies have made their packages –prepaid and
postpaid- with lots of attributes and benefits. Through the survey it was
acknowledged how each of the respondents reacts to those features and how
they evaluate those characteristics. Their likings, disliking, perceptions and
expectations are all reflected in this report through some diagrams derived by
using the SPSS software.
Introduction
Methodology
Source of Information
Secondary Sources
Web pages
The study is focused on Dhaka city. This report is limited only by its marketing
activities, and not related with any other departmental activities. The report is not
subjected to any personal clarifications, and confidentiality of some information
was a strict requirement on organizations’ part.
Limitations
Chapter: 02
Company overview
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 (62%), the largest telecommunications service provider in Norway with
mobile phone operations in 12 other countries, and Grameen Telecom
Corporation (38%), a non-profit sister concern of the internationally acclaimed
micro-credit pioneer Grameen Bank.
Over the years, Grameenphone has always been a pioneer in introducing new
products and services in the local market. GP was the first company to introduce
GSM technology in Bangladesh when it launched its services in March 1997.The
technological know-how and managerial expertise of Telenor 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 has also helped to transfer this knowledge to the local
employees over the years.
GP was also the first operator to introduce the pre-paid service in September
1999. It established the first 24-hour Call Center, introduced value-added
services such as VMS, SMS, fax and 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
and it ended 2005 with 5.5 million customers.
GP has generated direct and indirect employment for a large number of people
over the years.The company presently has more than 3,000 full, part-time and
contractual employees. Another 70,000 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
VP 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.
Vision:
Objective
Strategy of GrameenPhone
The basic strategy of GrameenPhone Ltd. Is for the overall coverage of both
urban and rural areas. It builds continues coverage, cell after cell, with an
intention to bring the whole country under its network. Though the priority of the
intensity of coverage varies from area to area, the basic strategy of cell-to-cell
coverage is applied through the whole country. Presently it has network coverage
in 57 districts around the country including all six divisional headquarters, with
749 base stations in operation. GrameenPhone’s strength comes in their strong
network capability, extended product line and services attracted the customers
very quickly. GrameenPhone offers a number of products and value-added
services to its valued subscribers. These attractive products and services are
designed to cater to the needs of the individual subscribers. There are six
products currently being offered by GrameenPhone. The products are: GP
Regular, GP National, Anytime 300, Anytime 500, EASY GOLD and EASY Pre-
paid. In addition, GrameenPhone offers a number of Value-added Services (AS)
to its subscribers. These include Text Messaging (SMS), Voice Mail, Fax/Data
service and Wireless Application Protocol (WAP). The SMS-based Push-Pull
Service was also launched in January 2003. Also GrameenPhone’s subsidiary
Djuice created a heavy buzz in the market when introduced in the middle of
2005. GrameenPhone targeted the younger generation of audiences with the
brand and became an instant hit. The made heavy promotions for the brand &
value added services that they were providing with it. Concerts, fairs etc attracted
people to buy Djuice. Product positioning & repositioning is one of the major
strength of the company. Their product line is one of the most comprehensive in
the business. Services are launched keeping in mind each and every segment of
the market. They also reposition their product on the basis of change in the
environment. Price flexibility is another strategy that the company follows
prominently. In case of product overlap (i.e. easy pre paid & Djuice), occasions or
simply for promotion the company exercises the price flexibility issue effectively.
GrameenPhone’s creative cell is one of the best in the country. Their recent
advertisements are a big hit in the country. They spend more than anyone in the
ad campaign in this industry. GrameenPhone believes that good business leads
to good development, since high level of productivity is development. The
activities of GP contribute to the socio-economic development of Bangladesh in
many different ways. In the sports arena, GP is currently sponsoring the
Bangladesh National Cricket Team for a period of two years through 2003-2005.
Advertising
Sales Promotion
Public Relation
Personal Selling
Direct Marketing
Advertising
Newspapers
Any day, if you hold a national news paper, you will find an advertisement of
Grameen Phone. Almost all the national news paper are used as the vehicle to
carry the advertisement. But some of the news paper which carry the ads for the
maximum times are:
Prothom Alo
Jugantor
Daily Star
The Independent
Television Commercials
Grameen phone’s TVC are maninf formulated with the objective to remind the
people about their existence and to promote their new packages or services.
TVC are executed through the leading national satellite channels. Such like:
Channel One
Channel I
E TV
Boishakhi etc
The style of the TVCs are musical, personality symbol and lifestyle for the Djuice.
The TVC are created by experts of famous AD agencies. Bitopi Ad Agency works
permanently for creating ads for Djuice.
The theme of the ads are either created by the Ad firms or sometime by
themselves.
Grameen Phone also sponsors many livr or recorded programs such like
Tritio Matra.
Outdoors
Sales Promotion
Sales promotion of GP is mainly talk time based. It takes the form of the following
types:
Contest : Grameen Phone arranges for many contest. One of the very famous of
such is Djuice Drockstar.
Events: Grameen Phone hosts many events like concerts at different cities all
over Bangladesh.
Patronage Reward: Grameen Phone provides Thank You Bonus for the regular
use of Grameen Phone.
Point of Purchase: Displays, posters, sign boards, danglers. oblars, buntings
etc are some form of POP that are found in a large numbers of shops all over
Bangladesh. This plays a very important role in positioning the brand.
Public Relation
Grameen Phone plans to build good relations with the company’s various publics
by obtaining favorable publicity, building up good corporate image.
Some of the important tools by which GP builds its public relation are as follows:
Written Materials: GP publishes annual reports at the end of each year for the
interest of stakeholders. GP also publishes newsletters at the end of each month
which are available for the postpaid subscribers and are also available at the
Grameen Phone Centre.
Audiovisual Materials: GP employees use slide and sound programs and films
when they are in any meeting or agreements with other companies.
Business cards used by the employees of GP, Logo, Printed stationeries etc are
also used as important tools for Public relation.
Web site of GP is very well designed and are very convenient for the people to
gather different information about GP.
Direct Marketing
A large number of GP’s sales personnel are involved in making corporate sales
in large organizations. GP is leading in corporate sales in Bangladesh. Direct
marketing also help GP to gain lasting customer relationship with these
organizations.
Overview of Banglalink
Banglalink got huge popularity as it triggered the true competition in the market. I
am happy to know that within one year, Banglalink has covered 64 districts, 120
upazillas and most part of the three major highways of the country. However,
there is still a long way to pass for improving its network.
People have high expectation from Banglalink. They expect continuous network
coverage all over the country, prompt customer service, and more value added
services, data services of high band-width etc. from Banglalink. Banglalink must
honor its customers by improving its services day-by-day so that people can
realize that even in a competitive scenario, the public sector organization can
achieve remarkable development if they get opportunity.
Vision
Banglalink understands people’s needs best and will create and deliver
appropriate communication services to improve people’s life and make it easier.
The biggest barrier today for people is the cost of handsets. Banglalink strive to
lower the total cost of owning a mobile. They are here to help make a difference
in people’s lives by providing affordable and reliable connectivity solutions. The
company strives to connect people and link their lives by listening to them and by
understanding their needs. They are here to help you speak your language.
To provide mobile telephone service to the people from the public sector;
To ensure fair competition between public and private sectors and thereby to
safeguard public interest;
Promotion:
Promotion is one of the marketing tools that a company uses to achieve its
marketing objectives. Each promotion tools has unique characteristics to improve
their total sales. Banglalink are trying to do more promotional activities for their
service. Banglalink Marketing promotion can be classified in several steps
The billboards installed so far by Banglalink Bangladesh Limited are listed below:
Personal Selling:
Personal presentation by the firm’s sales forces for the purpose of making sales
and building customer relationship. Banglalink uses personal selling in different
stages of marketing and distribution. Company distributes their product (SIM,
Scratch, I-top, Cash card) among the wholesalers and retailers by maintaining
the excellent relationship. Banglalink’s communicate with corporate client by its
sales force building and keeping relationship with potential and existing valued
customer.
Sales promotion:
Sales promotion includes a wide way of tools that can attract consumer’s
attraction, strong incentive of purchase, free gifts, discount and several types of
occasional program.
Road show: Banglalink organized a two days long road show. Here subscribers
got the opportunity to buy SIM of different pre-paid package at 70TK,where
regular offer is 150TK.
Handbag Distribution: At Bangla academy “Ekusay Boi Mela” Banglalink
distributed handbag in visitors who bought book from fair. There was slogan on
handbag for raising awareness for reading book.
Public Relation:
Overview of Teletalk
History
Starting of mobile telephone service through a state-run entity was the cherished
dream of all people of Bangladesh. Bangladesh Government had honored the
dream by including this issue in its election pledge. Our government had taken
several positive steps for making this dream into a reality. Though money is very
hard to come by in the national budget, our government had allocated
approximately Taka 800 (eight hundred) crore for the mobile telephone project.
We have also created the new company Teletalk Bangladesh Limited to operate
and render its services to the people. (The present government is committed to
reach mobile telephony to the doorsteps of the common man at an affordable
price. Teletalk, a state-run public mobile-telephone company was launched with
that objective in mind. The venture has proved to be successful one, as the
introduction of Teletalk has led to reduction of tariffs in mobile telephone services
rendered by other providers as well.Teletalk is the only state-run mobile
telephone service provider in the country. It has already completed one year of
operation. In this year Teletalk has a story of success as well as failure. On the
other hand, there is still undesirable weak or no network in some important
places despite its best and sincere efforts.
People’s expectation from Teletalk is very high – people have shown tremendous
enthusiasm to have a connection of Teletalk mobile phone. Therefore, Teletalk
must honor its customers by improving its services day-by-day so that people
may be proud of the organization. This state-run company should however, be
given enough authority and freedom to expand its network and to provide more
and more value added services to strengthen its position in the market. This will
not only create a source of revenue for the Government but also give rare
opportunity to the public to have better and quality services at cheaper rates.
Marketing System
Product
Price
Promotion
Place
Service
Price
Pricing is one of the marketing mix tools that a company uses to achieve it
marketing objectives. Teletalk decides its service pricing on the basis of cost
based pricing. They always think about the consumer purchase capability. That’s
why they try to fix a reasonable price for the consumer.
Promotion is one of the marketing tools that a company uses to achieve its
marketing objectives. Each promotion tools has unique characteristics to improve
their total sales. Teletalk are trying to do more promotional activities for their
service. Teletalk Marketing promotion can be classified in several steps:
Advertising
Teletalk first promotional activity is advertising. They know that advertising is the
way where massage could be delivered to the consumers mind. And this
Massage can be delivered to the consumer by the sound, music, choreography,
lighting and performer appearance. Advertisement massage must be believable,
meaningful and distinctive. Advertising can be used to buildup a long-term image
for a product and also can trigger quick sales. So that they invest a huge amount
of money for advertise to create a brand loyal customer.
Advertising media:
Newspaper
Web site
Magazine
Personal Selling
Personal presentation by the firm sales force for the purpose of making sales and
building customer relationship. Teletalk uses personal selling in different stages
of marketing and distribution. Company distributes their product (SIM, Scratch,
Cash card) among the wholesalers and retailers by maintaining the excellent
relationship.
Sales Promotion
Sales promotion includes a wide way of tools that can attract consumer’s
attraction, strong incentive of purchase, free gifts, discount and several types of
occasional program. PHP sales promotion includes credit sales, commission etc.
PHP arrange conference every year among the dealers, wholesalers and
retailers. They always try to influence and convince them for creating a market
demand and sale their product.
Public Relation
Place
Place is very much important for product sale. Place depends on good location,
transportation facility, availability, channels etc. and teletalk select a right place
named Banani, from this place people can easily buy the product and there
transportation system is very easy and available.
Overview of ROBI
Vision
Mission
Advertising of Robi
To advertise their products and services to the market Robi uses various types of
media that are available. Form television commercials to newspaper and
magazine they are now even sponsoring the evening news headlines.
Advertising media
Robi currently uses both electronic and print media for advertising its product and
services.
The following tables show the proposed Medias for Robi.
The new television advertisement will be broadcasted in all national and private
television channels before and middle time programs included. Robi can
advertise its SME package.
During news.
During the popular talk show.
During the popular package magazine programs.
Focus:
Daily Jugantor
Daily Ittefaq
Overview of Airtel
A new Middle East Based telecom company named Airtel Telecom is on its verge
to enter into Bangladesh in the next few months. Their strategies are yet to be
known to public. However rumor and public opinion expects Airtel to make the
mobile phone service industry further competitive.
Advertising of Airtel
To advertise their products and services to the market Airtel uses various types
of media that are available. Form television commercials to newspaper and
magazine they are now even sponsoring the evening news headlines.
Advertising media
Airtel currently uses both electronic and print media for advertising its product
and services.
The following tables show the proposed Medias for Airtel.
The new television advertisement will be broadcasted in all national and private
television channels before and middle time programs included. Airtel can
advertise its SME package.
During news.
During the popular talk show.
During the popular package magazine programs.
Focus:
Daily Jugantor
Daily Ittefaq
SWOT ANALYSIS
Brand name of Grameen image: Grameen Bank is well know all over the
country because of its appreciable activities in financial sector for poor people in
Bangladesh.
High ethical standard: To keep the quality of service GP is street to follow its
ethical standard.
Weakness:
Opportunities:
Threats:
Strength weakness
1. Low cost provider regarding its The progress of development of
competitor. network is far below from the subscriber
2. Banglalink’s all connections are expectation.
ISD & EISD. Lower number of human resource.
3. Banglalink is the only Failed to identify difference between
indigenous company using developed market and developing
GSM service. market.
4. From the very beginning it is Banglalink does follow aggressive
providing free TNT incoming & marketing but it should follow smooth
Outgoing. strategy.
5. It has also provided incoming Banglalink faces coordination problem
facility up lifetime. of Management system.
6. Moreover its contribution to our
economy can be notable.
Opportunities Threats
1. Banglalink can use the image of 1. An upcoming mobile service provider named
multinational organization. WARID TELECOM a concern of Dhabi group and
present market rivals.
2. Introduction of new technology
and services. 2. The invention of technology which is
new modern and consumer oriented.
3. Expand the market in the rural
area. 3. Another invisible threat is land phone
operator.
4. Banglalink can use the
experience strong network
facilities.
Analysis of Strengths:
Banglalink’s all connections are ISD & EISD: It’s a big strength of Banglalink.
It’s the only SIM which has such a versatility of connections having ISD,
Economy ISD service along with both incoming and outgoing connectivity with
any of the land phones. This is not seen to other providers. It gives a tremendous
competitive advantage to the Banglalink Bangladesh ltd over its respective
competitors.
Banglalink is the only indigenous company using GSM service: Banglalink
is the only local organization which is providing GSM technology in this country.
The other local organization named pacific telecom is providing CDMA
technology which is more expensive. So Banglalink can take this advantage over
its competitors.
It has also provided incoming facility up to lifetime: Banglalink have a strong
strength over its competitors incase of incoming facility. Banglalink present
incoming duration is up to lifetime.
From the very beginning it is providing free TNT incoming: Banglalink is the
only provider which is providing T&T incoming free from the very beginning.
Whether other operators providers providing such kind of facility just now.
Moreover its contribution to our economy can be notable: As a multinational
company Banglalink have a strong contribution in our national economy. Its one
of the high profit generating in Bangladesh.
Low cost provider: The most remarkable success of Banglalink is the slump in
tariff structure. It is the lowest cost provider in Bangladesh telecommunication
market. As soon as Banglalink announced its tariff the long lasting oligopoly
between other private mobile providers were shattered. Healthy competition
came into the mobile market.
Analysis of Weaknesses:
Analysis of Threats
Weakness
What makes SWOT particularly powerful is that with a little thought, it can help us
uncover opportunities that we are well placed to take advantage of. And by
understanding our weaknesses, we can manage and eliminate threats that would
otherwise catch our unawares.
More than this, by looking at ourselves and our competitors using the SWOT
framework, we can start to craft a strategy that helps us distinguish ourselves
from our competitors, so that we can compete successfully in current market.
Strengths
Patents.
Strong brand name.
Good reputation among customers.
Cost advantages from proprietary know-how.
Favorable access to distribution networks.
Weaknesses
Opportunities
Threats
Analysis of Strengths
Analysis of Weaknesses:
SWOT analysis
Strengths of Airtel
Weakness of Airtel:
Opportunities for Airtel:
Strength weakness
Low cost provider regarding its competitor. v The progress of development of network is far
below from the subscriber expectation.
Robi’s all connections are ISD &
EISD. v Lower number of human resource.
Findings:
GrmeenPhone
Banglalink:
Tele Talk
Robi:
Recommendation:
Robi, being the second largest mobile phone company in Bangladesh should
work more on strengthening its strategy. It’s been quite a long time that Robi is in
this position and has hardly worked towards attaining the top position. Robi is in
the second position due to its long time in the industry, but when compared to
Banglalink, which started way later than Robi but is marginally apart from it in
terms of revenue earning, then it must be concluded that Robi should perform
with more vigor orelse lose its position to Banglalink.
Robi is the pioneer in introducing GPRS in Bangladesh. But it lost its charm as
being the first one by not communicating it strongly to the right people. Though
Grameen Phone has started later, but people are more accustomed with it than
with Robi. Robi’s poor media planning and coverage is to be blamed for such a
loss. To jump out of this image Robi has to promote itself properly to people as
being the first company to launch GPRS and communicate through the right
media having the greatest exposure. Robi is also the pioneer mobile company to
launch insurance with its postpaid package. And also the first one to offer 5 fnf to
any operator (for prepaid), and an included FNF to BTTB number for postpaid
subscribers. It should work on its point of differentiation more critically and exploit
the advantage.
But creating such a chaotic situation of decreasing price every day at the
expense of network maintenance cannot be termed as a good strategy.
Banglalink has to improve its network and also introduce other services that the
leading mobile phone companies are providing. Because people now demand
more with a package other than low price.
Teletalk, the government owned mobile phone company is the 5 th entrant and
is seeing emerging business in the industry. But it must introduce new package
targeted towards the youth. Because, somehow, the young segment feel rather
out from the Teletalk domain. So, a big chunk can be enjoyed from the youth
group by introducing a package for them.
Airtel, the 6th and the latest entrant in the industry has entered a nearly
saturated market. It has entered the riskiest stage and will need time to up heave
itself and stand as a competitor for other already strongly-stood companies.
It must highlight its unique services as competitive advantage (e.g. 20 FNF, self-
activated EDGE services, N-GEN technology, etc) more to the people and also
expose its unique attributes to the target customer.
Conclusion
We are very pleased to have such a wonderful experience in getting this report to
existence, and we feel inculcated to do such a report on such a thriving industry,
that would very soon generate the highest amount of revenue for the country’s
healthy economic state.
We are very pleased to have such a wonderful experience in getting this report to
existence, and we feel inculcated to do such a report on such a thriving industry,
that would very soon generate the highest amount of revenue for the country’s
healthy economic state.
Bibliography
1. www.grameenphone.com
2. www.banglalinkgsm.com
3. www.teletalk.com.bd
4. www.bd.airtel.com
5. www.robi.com.bd