Methodology Origin of the study:
The report is done as a part of the research of the course MKT 201 (Marketing Management). The report focuses on Banglalink as we found much interest in the flourishing telecom industry. The research paper is prepared for Mrs. Sadia Shabnam Shabnam lecturer of Business Administration Dept. at East West University. This research is prepared during the semester Fall-2008 and would be submitted in the same semester. Research Method:
The research paper is made focused on the data collected from different sources. Data was mainly obtained from internet and marketing department of Banglalink. Limitations:
Some confidential factors were excluded in this study. The employees did not share the company’s secret with others which might have impeded data collection.
1
Telecom Industry Telecommunication:
Telecommunication links via satellites are bringing about revolutionary changes in the fields of communication. The barriers of spaces and time have totally collapsed. Not very long ago it took days to communicate to someone through a letter but new STD and ISD facilities have made communication an instantaneous process. The world appears to have contracted or been squeezed into anyone in any part in the world. What Telecommunication Marketing Is:
We all know the definition of Marketing is, “It’s a process by which individuals and groups obtain what they need and want by creating and exchanging products and value with others”. So we can say that telecommunication is process which telecom company or operator’s presents their products and services. Telecommunication has a great role in modern economy and society. Without it we can’t thing about the prosperity prosperity of the society. Now-a-days Now-a-days in most of countries countries telecom industry industry contributes a huge share of national income. Telecommunication makes the whole worl world d as a glob global al vill villag age. e. So peop people le can can comm commun unic icat ate e with with each each othe otherr from from anywhere of the world. Mobile Phone scenario in Bangladesh:
Bangladesh has the lowest telephone penetration rates in the world and even in South Asia. According to a report by the International Telecommunication union (ITU), (ITU), only only 1.56 1.56 among among 100 peopl people e of Bangla Banglades desh h own telec telecom om facilit facilities ies.. The telecommunication industry in Bangladesh is composed of six players. Bangladesh Telecom Limited was the first entrant in the market back in 1989 when it was awarded a license to operate cellular. Since then it has been renamed to Pacific Bangladesh Telecom Ltd. and given the Brand name Citycell Digital to its cellular service. Grameen Phone, Aktel, Banglalink, Teletalk and Warid have entered the industry with various changes in between. In the past 4 years the market has more than doubled, growing from 1.5 million subscriber in early 2004 to 38.93 million at the end of 2011 and up to November 2008 it crossed the 30 million subscriber base.
2
Telecom Industry Telecommunication:
Telecommunication links via satellites are bringing about revolutionary changes in the fields of communication. The barriers of spaces and time have totally collapsed. Not very long ago it took days to communicate to someone through a letter but new STD and ISD facilities have made communication an instantaneous process. The world appears to have contracted or been squeezed into anyone in any part in the world. What Telecommunication Marketing Is:
We all know the definition of Marketing is, “It’s a process by which individuals and groups obtain what they need and want by creating and exchanging products and value with others”. So we can say that telecommunication is process which telecom company or operator’s presents their products and services. Telecommunication has a great role in modern economy and society. Without it we can’t thing about the prosperity prosperity of the society. Now-a-days Now-a-days in most of countries countries telecom industry industry contributes a huge share of national income. Telecommunication makes the whole worl world d as a glob global al vill villag age. e. So peop people le can can comm commun unic icat ate e with with each each othe otherr from from anywhere of the world. Mobile Phone scenario in Bangladesh:
Bangladesh has the lowest telephone penetration rates in the world and even in South Asia. According to a report by the International Telecommunication union (ITU), (ITU), only only 1.56 1.56 among among 100 peopl people e of Bangla Banglades desh h own telec telecom om facilit facilities ies.. The telecommunication industry in Bangladesh is composed of six players. Bangladesh Telecom Limited was the first entrant in the market back in 1989 when it was awarded a license to operate cellular. Since then it has been renamed to Pacific Bangladesh Telecom Ltd. and given the Brand name Citycell Digital to its cellular service. Grameen Phone, Aktel, Banglalink, Teletalk and Warid have entered the industry with various changes in between. In the past 4 years the market has more than doubled, growing from 1.5 million subscriber in early 2004 to 38.93 million at the end of 2011 and up to November 2008 it crossed the 30 million subscriber base.
2
Company History Orascom Telecom Bangladesh Ltd. Type Founded Headquarters Area Area served served Key Key peop people le Industry Products Revenue Parent
Subsidiary 1999 Tiger House, House # SW(H)04, Gulshan Avenue, Gulshan Model Town, Town, Dhaka, Dhaka, Bangladesh 62 distri districts cts and 447 thanas thanas Rash Rashid id Khan Khan,, CEO CEO Telecommunication Telephony Tk.1300 million Orascom Telecom S.E. Egypt
Slogan
making a difference onuvutir network
Website
http://www.Banglalinkgsm.com
When Banglalink entered the Bangladesh telecom industry in February 2005, the scenario changed overnight with mobile telephony becoming an extremely useful and affordable communication tool for people across all segments. Within one year of operation, Banglalink became the fastest growing mobile operator of the country with a growth rate of 257 percent. This milestone was achieved with innova innovativ tive e and attrac attractiv tive e produc products ts and servic services es target targeting ing the differe different nt marke markett segments; aggressive improvement of network quality and dedicated customer care; and effective communication that emotionally connected customers with Banglalink. Banglalink entered the market with a promise of making mobile phone affordable for people. This promise was kept and Banglalink was the first operator to introduce a flat rate for all calls (inside own network and others operators) for the convenience and ease of customers. Thus “desh” was born – the best prepaid package for call any network. The flat rate for desh (one rate all throughout the day for any operator) is taka 1.45/min and there are 3 FnF (friends and family) – to any operator. Banglalink also ladies, first! – The only telecom package that caters to communication needs of women of Bangladesh. Ladies, first! Revolves around the concept of community based communication where woman to talk certain numbers
3
mostly, to maintain a perfect balance between professional and personal priority. Hence ladies, first! Offers 4 FnF and per second pulse after 20 seconds from the first minutes at Banglalink numbers. Target Targeting ing the corpor corporate ate and SME segme segments nts,, Bangla Banglalin link k launch launched ed “Bangl “Banglalin alink k enterprise” with state of art services including GPRS, corporate SMS broadcast, dedicate customer relationship management, and customized packages. Banglalink enterprise offers customized telecom solutions for different business as per their requirements and the objective of Banglalink enterprise is to assist the clients at every step as their businesses grow.
Throughout the year, Banglalink continued offering products and services approaching different consumer segments with distinct communication needs. In August, 2006, Banglalink became the first company to provide free incoming calls from BTTB for both postpaid and prepaid connections Banglalink focused heavily on enhancing service and quality during 2006. These enhancements were done in terms of network quality and and customer service. There was aggressive improvement of indoor coverage, and wherever necessary, especially in-building solutions were installed in case of enterprise customers and corporate corporate clients. To provide provide better better customer customer service, service, a new expanded expanded state of the art call center has also been established. At the end of the 2006, there has been a six customer care center and 63 franchise centers across the country attending various customers with different queries. Banglalink subscriber base grew by a hefty 253 percent in 2006 while the overall industry rose by almost 135 percent during the period, says a press release commenting on Banglalink phenomenal growth. Rashid Khan, the CEO, said “in less than two years Banglalink has established itself as a reliable, innovative and customer focused mobile operator. It is fully geared and committed to maintaining the same momentum and growth in future”.
Company Background Orascom Telecom Holding S.A.E. ("Orascom Telecom") or ("OTH") was established in 1998 and has grown to become a major player in the
4
telecommunication market. OTH is considered among the largest and most diversified network operators in the Middle East, Africa, and South Asia, and has acquired in early 2008 a license to operate mobile services in North Korea. Orascom Telecom is a leading mobile telecommunications company operating in six emerging markets having a population under license of 430 million with an average penetration of mobile telephony across all markets of approximately 44%. OTH operates GSM networks in Algeria (Djezzy), Pakistan (Mobilink), Egypt (Mobinil), Tunisia (Tunisiana), Bangladesh (Banglalink) and Zimbabwe (Telecel Zimbabwe). OTH had exceeded 77 million subscribers as of June 2008.
Orascom Telecom Bangladesh Ltd. was granted license in 1989 to operate in the rural areas of 199 upazilas and later they were also allowed to extend to cellular mobile radio-telephone services. In July, 2004 it was reported that Orascom Telecom is set to purchase through a hush-hush deal the Malaysian stakes in Sheba Telecom, as it had failed to tap the business potentials in Bangladesh mainly due to a chronic feud between its Malaysian and Bangladeshi partners. An agreement was reached with Orascom worth $25 million was finalized in secret. The pact has been kept secret for legal reasons, considering financial fallout and because of the feud.
The main reason for the undercover dealing was because the existing joint venture agreement between the Bangladeshi and the Malaysian partners dictates that if any party sells its Sheba shares, the other party will enjoy the first right to buy that. Integrated Services Ltd (ISL), the Bangladeshi partner, was being 'officially' shown as purchasing the shares held by Technology Resources Industries (TRI) of Malaysia for $15 million. ISL then paid another $10 million to Standard Chartered Bank to settle Sheba's liabilities. Sheba had a base 59,000 users, of whom 49,000 were regular when it was sold.
In September, 2004 Orascom Telecom Holdings purchased 100% of the shares of Sheba Telecom (Pvt.) Limited (“Sheba”). It was acquired for US$ 60 million and rebranded and launched its services under “Banglalink” in February, 2005. Banglalink’s license is a nationwide 15-year GSM license and will expire in November, 2011.
Banglalink is the second largest cellular service provider in Bangladesh. As of February, 2008, Banglalink has a subscriber base of 7.88 million. It is a wholly
5
owned subsidiary of Orascom Telecom. Banglalink had 1.03 million connections until December, 2005. The number of Banglalink users increased by more than 253 per cent and stood at 3.64 million at the end of 2006 and ended 2007 at 7.1 million subscribers’ base, making it one of the fastest growing operators in the world.
6
SWOT Comparison Sheet Strengths
My Company Banglalink
Competitor A Grameen Phone
Competitor B Warid Telecom
Competitor C Aktel
What are your business advantages?
Strong market communication & effective distribution strategy Strong market communication & effective distribution strategy For airtime sale
Network
Upgrade network
VAS marketing
Network
Upgrade network
VAS marketing
For airtime sale
For airtime sale
For airtime sale
Network capacity
Lowest call rate with outgoing bonus
Lowest call rate
What are your core competencies?
Where are you making most money?
What are you doing well?
Effective & lowest call rate
Competitor Information
7
Web address
Empl
Annu-
Reve-
Net
Asset
Liabili
Busin
Stoc
Oye al nue Incoties My Company Competitor A Competitor B es Sales (Grameen me (Warid Telecom) Phone)
ess k Competitor C Value (Aktel) Valu e
My 2500 140call rate 50 High 560 200 What areaswww. High cost 140 Lowest cost related Company are you related activities activities Banglalin million million millio million million avoiding? k n Where do Network New technology Network .com you lack resources?www. Competit 5000 310 310 110 900 300 or one million million What are grameen you Less coverage By losing current coverage Millio Less million million (Gramee losing subscriber n n Phone) money?Phone.
800 High costN/A million related
Weakness
What are you Gaining proper com Some admin doing poorly? related matters customer Competit www. 1500 70 70 20 satisfaction or Two waridtel. million million What needs Interdepartment Feel the millio (Warid n improvement al customer needs Telecom) com. bd ? issues Competit www. 2000 110 110 40 or Three aktel. million million millio (Aktel) n com
Network 250
Service 1400
N/A
by losing million old/permanent customers Service customer 200 N/A
million million Better million Network customer coverage service
400
200
500
million
million
million
SWOT Comparison Sheet
8
150
activities
N/A
SWOT Comparison Sheet
Threats
My Company
Competitor 1 (GP)
Competitor 2 (Warid)
Competitor 3 (Aktel)
Obstacles to overcome?
Lower ARPU market
Aggressive competitors?
GP
Banglalink
Grameen Phone
Grameen Phone
Successful competitors?
GP
Banglalink
Grameen Phone
Grameen Phone
Negative economic condition?
Yes
Yes
Yes
Yes
Government regulation?
YES
Yes
Yes
Yes
Changing business climate?
YES
Yes
Yes
Yes
Vulnerabilities ?
No
No
No
No
9
SWOT Comparison Sheet Opportunities
My Company
Competitor A (Grameen Phone)
Competitor B (Warid Telecom)
Competitor C (Aktel)
Niches that competitors are missing?
Network
Lower Call Rate
Network Coverage
Network
New technologies?
3G
3G
3G
3G
New needs of customers?
Wi-Fi
Wi-Fi
Wi-Fi
Wi-Fi
10
Product and Services Bangladesh 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. We can divide all of these products into four categories; these are• • • •
Pre-Paid Post-Paid Banglalink Enterprise Banglalink CU
Under these four categories there are several classifications based on the tariff plan and usage. Types Pre-paid
Packages Desh Desh rang Ladies first Personal package 1 Personal package 2 Personal call and control
Post-paid
Banglalink enterprise
Enterprise corporate Enterprise SME Enterprise personal
Banglalink CU
CU Std. CU call and control
Pre-Paid Products:
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Prepaid is a system where subscribers pay for their phone calls in advance. Prepaid gives subscriber the freedom to use their mobile within their budget. It is an excellent way to speak your language. The products, Banglalink Prepaid has network mobility feature which helps a subscriber to move around where Banglalink has its coverage.
Ladies, first!-
Banglalink ladies, first! Is the only telecom package that caters to communication needs of women of Bangladesh? Ladies, first! Revolves around the concept of community based communication where women need to talk to certain numbers mostly, to maintain a perfect balance between professional and personal priorities. Hence ladies, first! Offers 1 second pulse, 4 FnF and the time band of ‘your time’ has been extended from 7 am-5pm so that customers can talk at even lower rates to desired numbers. LADIES TARIFF PLAN Outgoing Peak (7 am-11 pm)
Banglalink to Banglalink
Tk. 1.79/min
Banglalink to other mobile Tk. 2.00/min operators Off peak (11 pm-7 am)
Banglalink to Banglalink
Tk. 0.25/min (from 11 pm-12 am Tk. 0.89/min)
Banglalink to any mobile
Tk. 0.89/min
FRIENDS & FAMILY (4 Numbers from BL-BL)
12 am to 5 pm
Tk. 0.25/min
5 pm to 12 am
Tk. 0.79/min
SMS
Banglalink to Banglalink
Tk. 0.49/SMS
Banglalink to others
Tk. 1.00/SMS
Ladies first! 616
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1) ONE second pulse-first time ever in prepaid connections in Bangladesh : banglalink has introduced 1 second pulse for the first time in the prepaid market through ladies, first! All ladies, first! Customers will enjoy this new benefit. 2) Late night rate until 9am: Only banglalink ladies first offer subscribers late night rate facility even during the peak time. The rate is a 0.99 paisa/min-banglalink to banglalink. 3) Bonus on Incoming: Banglalink prepaid ladies, first! Customers (m2m and standard) now get bonus talk-time for outgoing calls upon receiving calls. A customer will receive 20% free talk-time in a month based upon the calls received in the previous month. 4) Lifetime Validity: lifetime validity on prepaid account gives a customer the benefit of receiving incoming calls and staying connected forever. To get lifetime validity, a customer has to recharge his/her pre-paid account with a minimum amount of taka 10/- or above (via scratch card or -top up). A new ladies, first! Connection will cost: * Taka 450 (m2m)-with taka 20 FREE talk time * Taka 499 (standard with TNT incoming FREE)-with taka 20 FREE talk time Desh and bonus prepaid customers can also migrate to desh for free by sending an SMS LF to 210. There is no cost for 1st migrating to desh but bonus customers will not be able to migrate back. Customers of desh, regular prepaid may migrate to ladies, first! For the first time for FREE. After that any migration to any other prepaid package will cost tk 30/To migrate, SMS “LF” to 210 Migration to ladies, first! Will take 48 hrs to be effective and customers will get a confirmatory message of migration FnF are only applicable for Banglalink numbers Customers can set FnF for free in the following way - Go to new message option - Type the desired number that subscribers want to set as FnF - Send it to 3300 To set the rest of FnF, follow the same procedures This is a limited time offer For more information call customer care at 121 and 0191-310900. •
•
•
• •
•
• •
13
• •
Conditions apply Vat Applicable
Customers of this package will enjoy discount in the following categories of shops for any purchases made: • • • • • • • • • • • • •
•
•
Beauty parlor & Saloon Boutique shop Music Store Departmental shop/cosmetics shop Music Store Fast Food Restaurant Restaurant Fashion House Shopping Mall Flower & Gift Shop Hotel Jeweler Shop 1 second pulse after 20 second To recharge account and for balance inquiry: - Call 123 (free of charge) and follow the direction or - To recharge account through SMS press *123* then scratch cards hidden number # and SEND - For balance inquiry trough SMS: type *124# and send (free of charge) Prices are VAT exclusive and subject to change without prior notice - Please buy all connections from exclusive Banglalink outlet/Banglalink own sales center. - Please bring two copies of passport sized color photograph to purchase the connection
Desh
Banglalink “desh” was launched in September 2006. Banglalink desh is the best prepaid package for making class to any network in any time. The flat rate for desh is tk 1.96/min in peak (9am-12am) and there are 3 FnF (friends and family)-to any
14
operator. Banglalink desh gives subscribers the lowest SMS rate to any network Tk. 0.99/SMS.
The tariff plan for Banglalink desh is as follows:
"Banglalink desh" tariff plan Outgoing 9 am to 5 pm*
Banglalink to Banglalink
Tk. 0.69/min *
Banglalink to other mobile
Tk. 0.69/min *
Peak (5 pm to 12 am)
Banglalink to Banglalink
Tk. 1.45/min
Banglalink to other mobile
Tk. 1.45/min
Off Peak (12 am to 9 am)
Banglalink to Banglalink
Tk. 0.25/min
Banglalink to other mobile
Tk. 0.99/min
FRIENDS & FAMILY (3 Numbers to any mobile)
Banglalink to Banglalink
Tk. 0.25/min
Banglalink to other mobile
Tk. 0.79/min
SMS
Banglalink to Banglalink
Tk. 0.75/SMS
Banglalink to other mobile
Tk. 0.75/SMS
* 30 second pulse is applicable from the first minute and the FNF rate is only 25 paisa. * BTCB charges apply for desh standard connections In addition, banglalink desh stands out as the best pre-paid package for making calls to any network for the following reasons:
15
1) Lowest peak rate to call to any mobile : Banglalink desh offers customers the 2)
3)
4)
5)
lowest peak rate to call to any mobile at Tk. 1.45/min Late night rate from 12 am-9am: Only Banglalink desh offers customers late night rate facility during peak hours. Banglalink desh late night rate is applicable from 12 am-9am. The rate is a. 25 paisa/min-Banglalink to Banglalink b. 99 paisa/min-from Banglalink to any other operator Bonus on Incoming: Banglalink prepaid desh customers (m2m and standard) now get bonus talk-time for outgoing calls upon receiving class. A customer will receive 20% free talk-time in a month based upon the calls received in the previous month except banglalink. Lifetime Validity: lifetime validity on prepaid account gives a customer the benefit of receiving incoming calls and staying connected forever. To get lifetime validity, a customer’s has to recharge his/her pre-paid account with a minimum amount of taka 10/-or above (via scratch card or i-top up). EISD facility: Subscribers can call to 55 countries from their desh (even from M2M) connections at economy rate!
A new desh connection will cost:
* Taka 450 (m2m)-with taka 20 FREE talk time * Taka 499 (standard with TNT incoming FREE)-with taka 20 FREE talk time For existing ladies first/bonus prepaid customers.....
Ladies, first and bonus prepaid customers can also migrate to desh for free by sending an SMS DS to 210. There is no cost for 1st migrating to desh but bonus customers will not be able to migrate back.
Desh Rang Tariff:
"Banglalink desh rang" tariff plan
Outgoing 9 am to 12 am
Banglalink to Banglalink
Tk. 0.99/min
Banglalink to Others
Tk. 1.75/min
Off Peak (12 am to 9 am)
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Banglalink to Banglalink
25 paisa/min
Banglalink to other mobiles
99 paisa/min
FRIENDS & FAMILY (4 Numbers from BL-BL)
Banglalink to Banglalink
Tk. 0.25/min
SMS
Banglalink to Banglalink
Tk. 0.25/SMS
Banglalink to Others
Tk. 0.50/SMS
60 sec. pulse will apply for FnF calls, late night call and all calls to other operators' numbers at all times. For any other call at other time, 30 sec. pulse will apply.
Calls to BTCL:
BTCL charge will be added for standard
Post-Paid Products Banglalink enterprise-your link to growth
Regardless of the industry or size of the business, the aim is the same-growth! Speedy and reliable information flow is crucial to business. With this in mind, Banglalink welcomes customers to the world of Banglalink enterprise. It is the telecom solution for businesses that understands customer’s needs and offers customized communication solutions to help a customer’s business grow faster. With Banglalink enterprise a company will be assigned a dedicated enterprise relationship manager who will provide personalized assistance round the clock. Special benefits of Banglalink Enterprise:
1 second pulse Round the clock care line to answer all questions Customized price plans and packages to meet specific needs No security deposit for initial start-up and international roaming Free itemized bill Discount on connection free Banglalink enterprise family offer Smart business tools like GPRS, missed call alert, enterprise SMS broadcast, enterprise short code, fax and data service, free voice mail retrieval and more Convenient bill payment options Other value added services will be available as well • •
• • • • • •
• •
Enterprise personal packages
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Banglalink constantly strives to provide people the best service at the most affordable price. People can now choose the appropriate package based on people’s need and usage pattern. Benefits of personal packages: •
• • •
• • • • •
• • • • •
•
Standard postpaid package with T&T Local, NWD, ISD and E-ISD connectivity) 1 second pulse Lowest call charges FnF to any mobile operator with a very low tariff Up to 15% monthly loyalty discount on airtime All incoming calls including T&T are absolutely FREE Economy ISD call charges (012) to 55 countries Low monthly line rent Hassle free bill payment through i’ top up GPRS and MMS service International Roaming International SMS Tk. 100 FREE talk-time for new connections Smart services like Amar Tune, Power Menu, Missed Call Alert, News Alert, Yellow Pages, and many more Basic GSM services (call conferencing, call waiting, caller ID, call divert/forward, call hold, call barring, etc)
Customer can choose from the following three personal packages based on their need and usage pattern: Personal package 1
provides you the lowest call rates Waiver of monthly fee if usage is greater than Tk.500 (without VAT) duplicating mobile number facility Up to 2 supplementary connections with attractive group talk rate 10 MB GPRS & Miss call alert FREE (monthly) 20% bonus on incoming Up to 15 % loyalty discount
Personal package 2
* Minimum monthly bill of Tk. 1.000 at the lowest call rates * Monthly 150 FREE News SMS * FREE itemized bill * FREE golden number upon availability
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* Duplicating mobile number facility Personal call & control
* Usage through recharging scratch card/i’ top up * Lowest monthly fees * Helps keep usage within control Callcharges:
* Minimum monthly bill has to be Tk. 1,000 excluding VAT. It the bill is not Tk. 1,000 then the difference amount will be charged as monthly line rent. For existing Banglalink postpaid 600 and 1200 package customers, minimum monthly bill will be applicable from May 2008 bills. ** Promotional offer for BL to BL calls including BL to BL FnF calls from 00:00 hrs to 9:00 hrs.
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* FnF number can be any mobile number of BL or other mobile operators * All prices are in BDT and VAT exclusive * Conditions apply Personal package customers* can enjoy loyalty discount every month based on
monthly usage and length of stay with Banglalink. This means the longer subscribers have been with Banglalink the higher the discount they will receive. The loyalty discount is our way to expressing gratitude toward subscribers, because their loyalty means that Banglalink is their preferred and trusted mobile operator. This offer will be applicable for all existing and new customers from May 2007 and will be available until further notice. Subscribers can enjoy the discount every month as mentioned in the following Table: Monthly
Length of stay with banglalink
More than 2 years More than Less than 2 years Less than 1 year
1
year,
outgoing
voice
calls
(Excluding T&T charge, Roaming & VAT) Tk. 401-1500
Tk. 1501-3000
Tk. 3001+
10%
12%
15%
8%
10%
12%
7%
8%
10%
A customer’s length of stay will Banglalink will be calculated based on the date of activation of service with Banglalink. For personal package 1 and personal package 2 customers, the discount amount will be adjusted with the monthly bill. For personal call & control customers, amount equivalent to the discount will be uploaded every month to their account.
3G network
Potential
Health Care
Augmented
Call rate
Expected
Communication
Core
SIM sevice
Basic
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Pricing Strategies People from different areas contribute their expertise to set the most strategic price for a product. •
•
Accountants, financial managers and sales representatives provide relevant cost data. Designers, engineers contribute important data as well.
Prices are determined by the basic ways: • •
By applying the concepts of supply and demand. Completing cost-oriented analyses.
Economic theory assumes that a market price will be set at the point where the amount demanded and the amounts supplied are equal. •
Cost based Pricing: Practice of adding a percentage of specific amounts to
the base cost of a product to cover overhead costs and generate profits. Cost based Pricing totals all costs associated with offering a product in the market, including research and development, production, transportation and marketing expenses. Breakeven Analysis: Pricing technique used for determining minimum sales volume
a product must generate at a certain price level to cover all costs. • •
• •
•
•
Involves different types of costs and total revenues. Helps to determine profits/losses that would result from several proposed prices. Calculations of required sales can be compared by the Marketers. The comparison can identify the best price, one that may exceed the breakeven point and earn profits for the company. Banglalink joined the cell-phone Market a year ago. According to their plans and strategies: they have a goal of reaching the breakeven point within a few years. Al the present, they are concentrating on increasing and holding their subscribers which may cause a slow rate of progress in reaching the breakeven point.
Alternative Pricing Strategies
21
•
Skimming Pricing: The setting of an intentionally high price relative to the
prices of completing products. It may outline the firm’s high-end product from those of competitors as well. Skimming pricing is often used to recover a company’s product development costs before competitors are introduced in the market.
Among the huge market of prepaid users, the Upper-Class Post Paid competes completely in different consumers. This certain type of offer differentiates itself relative to the other competing products of the same company’s market. •
Penetration Pricing: Setting low prices in products and services as a major
marketing weapon. This strategy helps marketers to increase the product prices after the product earns certain recognition among the consumers. Banglalink introduced a Package, offering a basic Handset as well as a talk-time of 1800tk at the company’s very starting, where the total cost of the package was less the market price of the handset alone. The offer helped the company to make a very early impact among the consumers because of its unique offer. •
•
•
Everyday Low Pricing and Discount Pricing: Strategy devoted to maintain
continuous low prices rather short-term price-cuttings. As the mobile phone companies run their prices on rather different ranges of time-slots, Banglalink offers least in average pricing of their services compared to the other rival companies. The company is also continuing its efforts on reducing prices of their current offers until a steady, low priced strategy is achieved. Competitive Pricing: To reduce the emphasis on price competition by matching other firm’s prices and concentrating their own marketing efforts on the product, distribution and promotional elements.
Banglalink is among the first mobile companies to offer a different taste in telephone conversation by introducing voice conferencing.
Banglalink identified the deficit of a service that is neither too cheap not too expensive, and invocated a business offer named Call & Control Standard. This particular package includes many of the offers from the actual post-paid package to attract the customers but at a more standard price. Another attraction of this offer is that, the SIM card never deactivates even if it’s not used for a long time. Price-Quality Relationships:
22
•
•
The consumer’s perception of product quality is closely related to the price of the item. That is, a product may be expected to be valuable if its price is labeled in a higher price. Extreme prices are considered as too expensive or too cheap.
One of the up-coming products of Banglalink; will be offering mobile-to-mobile cell phone connections at only fifty taka per SIM card. The company has already planned to pay a percentage on those connections, and also aware of making the offer shorttermed. •
Certain priorities of the consumers.
Banglalink has taken initiatives for developing the ideas of consumers to prefer their company over their rivals by repetitive advertisements •
Odd pricing: The strategy of setting prices in different ways, for giving a
general idea of the price to be less; where the price of the product may not actually be so. Banglalink uses pricing charts in half minute pulse in most ads, where the general idea of pulse still remains in minutes. Among many of the prices set by this particular company, odd pricing can be found from text messaging prices to call charges.
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Distribution & the Channel of Distribution: Distribution:
Distribution is one of the four elements of marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user. Channels:
A number of alternate 'channels' of distribution may be available: • • • •
•
Selling direct, such as via mail order, Internet and telephone sales Agent, who typically sells direct on behalf of the producer Distributor (also called wholesaler), who sells to retailers Retailer (also called dealer or reseller ), who sells to end customers Advertisement typically used for consumption goods
Distribution channels may not be restricted to physical products alone. They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc.
There have also been some innovations in the distribution of services. For example, there has been an increase in franchising and in rental services - the latter offering anything from televisions through tools. There has also been some evidence of service integration, with services linking together, particularly in the travel and tourism sectors. For example, links now exist between airlines, hotels and car rental services. In addition, there has been a significant increase in retail outlets for the service sector. Outlets such as estate agencies and building society offices are crowding out traditional grocers from major shopping areas.
Channel members:
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Distribution channels can thus have a number of levels. Kotler defined the simplest level that a direct contact with no intermediaries involved, as the 'zero-level' channel.The next level, the 'one-level' channel, features just one intermediary; in consumer goods a retailer, for industrial goods a distributor. In small markets (such as small countries) it is practical to reach the whole market using just one- and zerolevel channels. In large markets (such as larger countries) a second level, a wholesaler for example, is now mainly used to extend distribution to the large number of small, neighborhood retailers. In Japan the chain of distribution is often complex and further levels are used, even for the simplest of consumer goods. In Bangladesh Telecom Operators are using different Chains of Distribution, especially 'second level'. In IT and Telecom industry levels are named "tiers". A one tier channel means that vendors IT product manufacturers (or software publishers) work directly with the dealers. A one tier / two tier channel means that vendors work directly with dealers and with distributors who sell to dealers. But the most important is the distributor or wholesaler. The Internal market:
Many of the marketing principles and techniques which are applied to the external customers of an organization can be just as effectively applied to each subsidiary's, or each departments, 'internal' customers. In some parts of certain organizations this may in fact be formalized, as goods are transferred between separate parts of the organization at a `transfer price'. To all intents and purposes, with the possible exception of the pricing mechanism itself, this process can and should be viewed as a normal buyer-seller relationship. The fact that this is a captive market, resulting in a `monopoly price', should not discourage the participants from employing marketing techniques. Less obvious, but just as practical, is the use of `marketing' by service and administrative departments; to optimize their contribution to their `customers' (the rest of the organization in general, and those parts of it which deal directly with them in particular). In all of this, the lessons of the non-profit organizations, in dealing with their clients, offer a very useful parallel. Channel Decisions: • •
Channel strategy Product (or service)<>Cost<>Consumer location
Managerial Concerns:
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The channel decision is very important. In theory at least, there is a form of trade-off: the cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer goods manufacturers could never justify the cost of selling direct to their consumers, except by mail order. Many suppliers seem to assume that once their product has been sold into the channel, into the beginning of the distribution chain, their job is finished. Yet that distribution chain is merely assuming a part of the supplier's responsibility; and, if he has any aspirations to be marketoriented, his job should really be extended to managing all the processes involved in that chain, until the product or service arrives with the end-user. This may involve a number of decisions on the part of the supplier: • • •
Channel membership Channel motivation Monitoring and managing channels
Channel membership:
1. Intensive distribution - Where the majority of resellers stock the 'product' (with convenience products, for example, and particularly the brand leaders in consumer goods markets) price competition may be evident. 2. Selective distribution - This is the normal pattern (in both consumer and industrial markets) where 'suitable' resellers stock the product. 3. Exclusive distribution - Only specially selected resellers or authorized dealers
(typically only one per geographical area) are allowed to sell the 'product'. Channel motivation:
It is difficult enough to motivate direct employees to provide the necessary sales and service support. Motivating the owners and employees of the independent organizations in a distribution chain requires even greater effort. There are many devices for achieving such motivation. Perhaps the most usual is `incentive': the supplier offers a better margin, to tempt the owners in the channel to push the product rather than its competitors; or a competition is offered to the distributors' sales personnel, so that they are tempted to push the product. Monitoring and managing channels:
In much the same way that the organization's own sales and distribution activities need to be monitored and managed, so will those of the distribution chain.
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In practice, many organizations use a mix of different channels; in particular, they may complement a direct sales force, calling on the larger accounts, with agents, covering the smaller customers and prospects.
Distribution Management System: About DMS Application:
Distribution Management System is specifically developed for the company, which has high volume of sales with wide distribution network. This application keep track of all sales which happens either through depot, channel or through any other mode, even it keep a track of all inventory of your dealers or depot and respective other details which are normally required by management for day to day reporting. Features:
The complete application is developed in modules with various level of access control and the best part of it is that the reports can be seen by management or concerned person from anywhere, anytime
Reports:
The types of reports which are generated by this application are: 1. Sales Status All Dealers/ All Channels Specific Dealers/ Channels. Specific Day Range of Day/Mont 2. Payment Status All Dealers/ All Channels Specific Dealers/ Channels. Commission Generation. Outstanding Range of Day/Mont 3. Stock Report All Dealers/ All Channels Specific Dealers/ Channels. • • • •
• • • • •
• •
Market Dominance and Competitive Advantages:
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Market dominance and Competitive advantages are the measure of the strength of a brand, product, service, or firm, relative to competitive offerings. There is often a geographic element to the competitive landscape. In defining market dominance, you must see to what extent a product, brand, or firm controls a product category in a given geographic area. There are several ways of calculating market dominance. The most direct is market share. This is the percentage of the total market serviced by a firm or brand. A declining scale of market shares is common in most industries: that is, if the industry leader has say 50% share, the next largest might have 25% share, the next 12% share, the next 6% share, and all remaining firms combined might have 7% share. Market share is not a perfect proxy of market dominance. The influences of customers, suppliers, competitors in related industries, and government regulations must be taken into account. Although there are no hard and fast rules governing the relationship between market share and market dominance, the following are general criteria: •
•
•
A company, brand, product, or service that has a combined market share exceeding 60% most probably has market power and market dominance. A market share of over 35% but less than 60%, held by one brand, product or service, is an indicator of market strength but not necessarily dominance. A market share of less than 35%, held by one brand, product or service, is not an indicator of strength or dominance and will not raise anti-combines concerns of government regulators.
Distribution Practice of Banglalink: Distribution System of Banglalink:
Distribution is the heart of the sales. So, the more distribution network is strong the more the chance of getting revenue. Banglalink has an effective distribution model. Banglalink distribute their products through the distributors. Mainly the SIM and Air Time (scratch card and electronic money reload-I’ top-up) are the main products for distribution. Banglalink gives the product to the distributors and they buy it from the Banglalink. For that they are getting 1% commission for every Tk. 1 lack for reload money. For the SIM sale they are getting .75% commission of total uses what the
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distributor sold to market and they will get it till his distribution will run for the company. Banglalink also provides distribution operating cost for the distributor for running their business. The operating cost has two parts one is fixed Commission for the Distribution mangers salary, rent of house and other distribution cost. The other portion is Variable cost for the salary of the Retail sales officer. Key Focusing points of Banglalink distribution System: Act as in Best Business Partner:
Banglalink is the first cell company who focuses on the route level distribution process as followed by the FMCG companies. This distribution system enables the wide open trade relationship to act as a better business Partner. In this concept now Banglalink has almost 50 thousand retail outlets across the Bangladesh instead of the Exclusive outlet of only 287 outlets in 2005. For the route level distribution penetration and improving better business relationship there is no other option to go to each and every outlet and reach our product. In this process Banglalink introduce District distribution concept from April 2006. Distribution Cost Sharing with Distributors:
In Banglalink distribution Model Company are giving distributors operating cost. This cost includes distribution mangers salary, Commission disburser salary, distribution house rent and RSO salary. Banglalink not only ensure distributor commission but also give commission to trade for every single SIM are activated and used. In the trade Banglalink is giving Tk 100 to the retailers for every single SIM uses. Commission is the main profit for the retailers to do SIM business. Every month Banglalink gives commission for the retailers through the distributors. In Banglalink the Main product for the company are both SIM and reload. The reload are the main device for gaining the revenue for the company. So, through the distributors Banglalink distribute the reload SIM to the retailers and that’s the main job for the sales team to penetrate the products to rural, Urban and semi urban retailers. Promotion and Trade Marketing support:
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In order to sell the product or to make it aware of the consumer level and so as in trade level different trade promotion, consumer promotion and trade marketing are offering from Banglalink.
Trade Promotion:
Trade promotion is basically the trade offer which is given to trade as of trade commission in addition to the regular commission. Generally trade commissions are 2 types’ upfront commission and usage commission. In addition which is given to trade is called trade promotion. Some trade promotions of Banglalink are Boishaki offer ’07, Boshonto offer ’08, and May bonus ’08. Consumer Promotion:
Consumer promotion are designed for the consumer that is called package such as night bird that is from 12 a.m. to 9 a.m. any Banglalink user can call to any Banglalink no for 25 paisa minute and from 9am to 4pm Banglalink to Banglalink 69 paisa. 300 SMS free for 50tk recharge etc. Trade Marketing Support:
Trade Marketing is basically ensuring customer pull. In the trade level different activities is done for sales more or keep the sales upstream. Banglalink has done lots of trade marketing activities in the trade level such as trade advertisement like giving trade letter for different trade promotions, ensure different package promotion point of sales materials like Trade Posters, Backlit sign placement, Focusing new channel of business like HoReCa activation, Ensure local activation program, special focus on branding hubs, Markets etc. In a nut shell it can be said that sales resources planning and quality execution is the key instrument for sales which called Trade Marketing.
Quarterly Business Review:
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In order to improve ourselves we need regular review of our responsibility or work. Only the regular monitoring and review can put a positive difference in your work. Banglalink is not making different than that every quarter we arrange a quarterly business review to discuss about the last 3 months business and past performance, Flaws and opportunities. It’s an open discussion in which distributors are involved to share their experience in doing business and form the company end we give the way forward to the further business plans and procedure. So, quarterly business review is an important segment where the important business decision is taken for the development and pre plan for the net take out of the business. It has helped the distributor how to grow further in his zone and what they will serve according to the companies plan.
Distribution Management System (Banglalink Distribution Data Software):
Distribution management system is the data software of Banglalink where all the trade members’ details information is uploaded for the tracking of the business. In DMS all the related data of everyday business is recoded, such as how many SIM a particular retail outlet is taking. It has the details of that particular outlet such as retailer’s name, Address, regular dealings of SIM and the main parts of that DMS are regular activation and trade commission generation. The other part of the distribution management system is that SAF submission in because each & every single activation requires a fulfillment of SAF (Subscriber’s Application Form). Banglalink is the only company in Telco industry and FMCG industry who sharing the distribution cost with the distributor for doing the business. Problems & Prospects of the Distribution System of Banglalink:
Banglalink is very keen kin to improve its distribution system. That’s why they are doing very hard to remove all the weak points from the distribution model. There are some basic problems in Banglalink Distribution Management System. Business Partner:
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In Exclusivity model Banglalink do business only with 5 National distributor and they controlled 287 outlets all across the country. That why the trade relationship was not involved directly. But now in District distribution model Banglalink is directly involved to the trade level around of 50000 outlets with their 103 distributors but the problem is they need to improve the service level such as effective business relationship, more information dispatching to trade level in an effective way. As business partner Banglalink is trying give out their best with their skilled sales force and a planned distribution model. The district distributor concept enables the broad way to communicate more and more to trade. Behind the distribution model the major problems are as Banglalink only operate 50000 outlets there is a lots of opportunity in the markets as 500000 outlets universe in the market. Now days mobile SIM is not the posh product rather now it goes a useful element for all types of people. For that non classification product pattern now it needs to penetrate hugely in semi urban and rural level. So, the challenge of this distribution model is that to make direct contact with the retailers with keeping a modest relationship and to capture as much as the universe. Cost Sharing with the Distribution:
In order to drive a distribution lots of cost are involved they are cost of manpower, working capital caring cost of the product, distribution cost in the market. In those so many costs Banglalink support their distributors to give them the partial distribution cost that is the RSO salary distribution manager salary, Computer operator salary etc. For this cost sharing every distributor is getting at least Tk. 60,000.00 per month. But from the sales turnover and geographic coverage view point small distributors are enjoying huge profitability and it is very much positive in their ROI but for large distributors the phenomenon is reverse as their manpower requirement and geographical coverage is more than the smaller distributors but both of them are getting the same amount of money as distribution cost. Another problem is that with the cost sharing tendency often signals to the distributors that they only want to be strict to the given cost rather expense more for gaining more revenue. Distributors are reluctant to spend more in this issue where a
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bit of extra expenditure in the distribution helps they earn more revenue not only for the company but also their own profitability and Return on Investment (ROI). Promotion and Trade Marketing:
In case of giving trade promotion and in trade marketing activities Banglalink has a benchmark to be the best among the other mobile operators. Regular trade promotion like Boishakhi offer, Boshonto offer and May bonus offer has clicked hugely that’s why in 2007 Banglalink has acquired 43 lack of customer base which is the 2nd highest acquisition in 2007 and in 2008 till august Banglalink is about to hit the 10 million customer base. That’s all happen for giving the trade the continuous lucrative offers to get more business to the retailer end. As the trade level is only path to get the customers so the trade is the highly focused area to get business from there. But the main problem in that sector is the continuous and consecutive trade offer sometimes gets the monotony in the trade and it will also increase the whole sale tendency for the retailers and it’s a huge obstacle for the distribution excellence. So, to reduce the tendency of the whole sale and to stack of the sales trade offer need to give a certain period of time like one month rather giving three months at single stretch. The other part is the trade marketing where a number of resources are used to ensure product campaign, visibility, and different activation program. The main constraint in this regard is that the resources shortage which sometimes affects our trade priority, business relation, and ultimately, revenue generation. Quarterly Business Review:
Quarterly business review is the review program that occurs for the quarterly business plan implementation and the performance evaluation for the last 3 months. Its an open discussion for the distributors to show their performance what they are doing as well as where the company’s business go on in terms of distributions excellence, sales target achievement, revenue collection, trade loyalty. Basically here there is no problem but the inclusion should be the requirement of such program for the trade level such trade meet organize to alert the retailers or to give the feel of business and to understand them their own standing of business and to
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educate them about the new plan of distribution and to show them the path of profitability. So, at least one trade meet is required for the every quarter for the retail level as well. Distribution Management System (BANGLALINK Distribution Data Software):
DMS is the most important data software for the Banglalink distribution system. Full distribution system is run by the DMS. In the DMS the total business transected outlets details are there which we called the registered outlets. DMS takes part basically when the SIM is sold to distributors from the company and the sold SIM is entered in the DMS first from there it goes to those retailers at the time the SIM code is recorded in the name of the retailers. Thus every single sold SIM no. and serial no. is recorded in the DMS which ensure the retailers commission when those sold SIM are activated. So, to ensure the commission for the retailers DMS is the only solution for the retailers. So, the accurate inputs of DMS data is the main job to ensure the retail commission and of course the trade loyalties. If a single mistake is arises then the retailers will not get the commission which may break the business relationship with Banglalink and makes an issue of trade dissatisfaction towards the company. So, in order to reduce the mistakes and inaccuracy from the DMS the requirement is the close observation and monitoring to build the strong trade loyalty through ensuring commission to the retailers. Banglalink Distributors:
Dhaka A&E International
Gopalgonj
01913502300
BB Telecom
Shariatpur
01913844243 01913385177
E.N Distributing Narayangonj House Butterfly Telecom MK PLUS
Dhaka Metro: Motijheel, Paltan. Dhaka Metro: Mirpur, Kafrul,
01912135610
A-4, Mahmud Plaza Bongobondhu Sarak. Gopalgonj, Bangladesh. Awal Super Market Shodor Road, Shariatpur. 194 B.B Road, Shamabay Super Market (3rd Floor) Chashara, Narayangonj 71, Motijheel C/A, Dhaka-1000.
01911429020
H # 156/B. Rd-22, New DOHS, Mohakhali, Dhaka.
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Pallabi Kishoregonj
R.S Telecom ADEL Communications
Faridpur
Green Tone Ltd.
Dhaka Metro: Dhanmondi. New Market. Hazaribagh Tele Stream Ltd. Dhaka Metro: Sabujbagh and Khilgaon Gazipur Trading Gazipur House Integra Teletac Mobile House A. 1, Distribution
01913258686
Munshigonj
Amin Cox’s Bazar
Shop # 44 & 45 (1st Floor), Purana, Kishorgonj. Sumsuddin Tower (4th Floor), Alipur, Faridpur7800. 10/25 B Eastern Plaza, Sonargaon Road, Hatirpool. Dhaka-1205.
01913735050
47/1, North Dahka.
01911117777
01912135626
Room No. 26 (1st Floor) Akanda Mansion, Mosjid Road, Joydevpur, Gazipur1700. 5th Floor, Rapa Plaza, H # 01, Rd # 16, Dhanmondi, Dhaka. Press Club Complex (Ground Floor), 96 C.K Gosh Road, Mymenshing Balashur Chowrasta, P.O. Bhagyakul, P.S-Sreenagar, Munshigonj. 13/4, (1st Floor) Solimullah Road, Block-B, Mohammadpur, Daka-1207. Delwar Complex (3rd Floor), 26, Hatkhola Road, Dhaka-1203. House # 03, Rd # 100, Gulshan-2, Dhaka.
01913505700
H # 3, Rd # 18, Sector-7, Uttara, Dhaka-12030.
01912500399, 0192500388 01913619200
1646, Lokman Tower, Level5, SK. Mujib Road, Agrabad, Chittagong.
Dhaka Metro: 01911Tejgaon, 429006 Ramna Mymenshing 01913468600
Ashraf Distribution Dhaka Metro: Mohammedpur, Adabor Safedrive Dhaka Metro: Services Ltd. Sutrapur, Kotwali Ring Bangladesh Dhaka Metro: Ltd. Gulshan, Badda, Cantonment JN Distribution Dhaka (Uttara, Khilkhet, Airport, Turag) Chittagong Communic Trade Chittagong Link M/S Al Stores
01913558080 01913464919
01913478282 01911344046, 0191350365 01911429023
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Mugdapara,
Laldighir Par, Main Road, Cox’s Bazar.
Techno Enterprise
Noakhail
Noorhan Telecom
Comilla
Syleht M/S Hussain Sylhet Metro Traders (South) Sass Tel Sylhet Metro (North) South Sylhet Co. Moulvibazar Ltd. M.A. Rahman Hobigonj Afjal Link Asia World Sunamganj Wide Rajshahi GSM PLUS Sirajganj Rabna Mobile Rabna Distributor Hamid Tellular Bogra M/S Hamidia Nator Associates Cell-O-Fone Rajshahi Any Time
Naogaon
Arko Electronics
Lalmonirhat
Globe Link
Chapai
M/S. Moulovi Dinajpur Brothers M/S Mamun Galbandha Trades S S International Joypurhat Trade Line Rangpur Enterprise Wireless Agent Thakurgaon Mina Trade Link
Panchgarh
01911540404 01911220354
Dalia Super Market, Karimpur Road, Noakhali. Court Road, East Fouzdarl Crossing, House # 148, Comilla.
01913581020 01911146760 01912701925 01912709874 01919112233
Karimullah Market (3rd Fl.) Bondor, Sylhet. Karimullah Market (4th Fl), Bondor, Sylhet. Jagonathpur, Sreemongal Road, Moulvibazar. Ali Plaza, Puran Mosef Road, Habiganj. Al-Hamra Shopping City, (6th Fl.), Sylhet.
01913601301 01912801150 01913847484 01913234353 01913846400 01913822636 01911820992 01913602010 01913233536 01912549342 01913237740 01913801901 01913287293 01911229663
Station Road, Sirajganj
Khulna
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Abdul Hamid Road, Paradise Street, Pabna. Tinpotty Santahar Road, Bogra. Mollik Hatl, Nator Gaffar Plaza, Shabeb Bazar, Rajshahi. Kajir More, Sadar Thana, Naogaon. Thana Road Lamonirhat Club Super market, Naobabganj Maldahopotty, Dinajpur Road # 1/1, House # 150/A, Mastaerpara, Gaibandha. House # 165, Professor Para, Joypurhat. DC More, Rangpur BB Road, Thakurgaon Tetulia Road, Panchagarh.
Dokrapara,
M K line
Khulna-1
M Link
Khulna-1
Khulna Infotech
Khulna-2
Jess Link
Jessore
M K Connection
Jhenidha
Ankur Commercial Kushtia Jonaky Traders
Chuadanga
Link Station
Meherpur
Easy Tel
Magura
Zahin Corporation
Satkhira
AAQIB Telelink
Bagerhat
Barisal Voice Link
Barisal
01911070007 01911070007 01912217777 01911835444 01913077474 01912508608 01913920980 01913248989 01913812323 01913200014 01913891200
Khulna shopping complex, Khulan Khulna shopping complex, Khulna A 43-44 Mojid Sarani, Shibbari, Khulna Jess tower, 4th floor, Jessore.
01913812424
Razia Sultana Monjil, (2nd Flr.) Police line.
Jess tower, 4th floor, Jessore Ganga Prashad Kejriwal Sarak, Kushtia. Chuadanga Bazar, Chuadanga Mohila College Road, Meherpur Sayed Atar Ali Road, Magura Shahid Kazal Sarani, Satkhira Hamla Bagerhat
Para,
Litutola,
Market Segment Market segments can be built up in many ways. One way is to identify preference segment. Banglalink follow the diffused preference market segmentation. In these segments, customer preferences may be scattered throughout the space, indicating that consumers vary greatly in their preferences. Banglalink, which brand enters to the market is likely to position in the center to appeal to the most people. A second competitor could locate next to the first brand and fight for market share or it could locate in a corner to attract a customer group that was not satisfied with the center
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brand. If several brands are in the market they are likely to position throughout the space and show real differences to match consumer preference.
Steps in Segmentation process: Needs based segmentation: They are trying to solve customers’ needs and wants.
Some times they solve particular problem of the customers. Segment identification: Urban people’s needs are different from rural people. They
are identifying customer’s lifestyles and usages behavioral. Their one of the popular segmented product is lades first. Segment attractiveness: Their overall market share, and market growth rate is
high. Their desh package captures the normal users and SME package capture the business people. Segment profitability: Their profit rate is very high. When they introduce the desh
package their profit increased by very high rate. They make profit by individual segment. Segment positioning: They offers very attractive package for customers, give them
bonus, and extra other facilities. They are in second position in this industry. Marketing-Mix strategy: Their product price and facilities varies from package to
package. They introduced different product and different prices and different promotion activities in different place.
Effective Segmentation: Measurable: The size of the market is big, which can be measured. Now the call
rate of Banglalink is lower than the competitor. So purchasing power is high which also can be measured. Substantial: The main profitable segment is post-paid and Business Enterprise for Banglalink. Another large profitable segment is pre-paid. Desh Rang is the leader of pre-paid. This segment is for youth and also for general people.
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Accessible: Banglalink has strong distribution channel which can be effectively
reached to the customers. Banglalink also has customer care center all over the country to serve the customer in their need. Differentiable: Banglalink recent slogan is “Onuvutir Network” which differentiated their service from other network also offered .25 paisa first in Bangladesh. Banglalink is the lowest call rate operator than the other operator which is easily differentiable. Actionable: Banglalink is the first operator that introduced serves their customer within 10 min in their customer care center to provide the better service.
Promotion Advertising media:
Banglalink became a leader in terms of its advertising quality and setting very high standards for competition and others. To campaign their product most effectively.
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banglalink uses combination of different media to reach the highest percentage of the customers the combination would include : •
Print media
•
Television
Print media:
It is the habit of our people to go through some kind of newspapers or magazines and Banglalink’s eye catching newspaper ads has attracted a lot of customers for the company Television:
The corporate TV commercial of “din bodol” based on the theme “making a difference in people’s loves”. touched everyone throughout the country and was adjudged the best TVC of the year according to the leading dailies of the country like Prothom Alo and New Age. This TV Commercial has become a matter of national pride for Bangladesh as it has been nominated for the best TV Advertisement of the year with 4 other international television commercials at the GSMA Award 2007. GSMA Award is considered to be the Oscar of mobile industry. Billboards:
Billboards are the cheapest and easiest way to catch the attention of the moving people of the city. The billboards of Banglalink are hung beside the busiest of roads and streets of the city. Where people travel frequently such as Gulshan, Banani, Dhanmondi, uttara etc. Transit Advertising:
One of the most popular ways of advertising today is transit advertising, which are the ads on body of the big buses as majority of the people of the country uses them for traveling. Health link:
They provide 24 hours health link service or telemedicine for Banglalink customers by dialing 789.
Other Promotional Activities:
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Banglalink continues to play an active role in the area of corporate social responsibility. Banglalink has given Dhaka International Airport-the gateway of Bangladesh a completely new look. Provision of high quality passenger trolleys, phone booths, emergency charging station and beautification of the premises is an exemplary initiative which no other multinational has taken. Banglalink also contributed to an important tiger conservation project in the Sundarbans, and continues to support the Cox’s bazar beach cleaning program.
Conclusion Banglalink is one of the largest foreign director investments in Bangladesh. The company, after its inception in February 2005, has grown rapidly into the leading mobile phone service of the country.
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