5. Arian-Marketing-Plan-of-Bang-La-Link-

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Marketing Plan Of Banglalink

Subject: PRINCIPLE OF MARKETING

COURSE BBA 1302

Submitted To: MS. ADIBA ANIS

Submitted by: Arif Aminun Rahman

Student ID: 20083037

Semester: FALL- 2010

Date Submitted: 15-12-2010

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Table of Contents

Page

Executive Summery 6

1: Introduction 7

1.1 Rationale of the Study1.2 Objectives1.3 Methodology

2. 0 Introduction of Banglalink ... 9

3: Marketing Plan of banglalink. 23

3.1 Situation .. 23

a.Packagesi. Prepaid Packagesii. Postpaid Packages

b. Value added Servicec. Product Life Cycle

3.2 Price 38a. Strategy for pricingb.Discountc. Factors affecting pricing

d. Competitorse. Call Rate of banglalink with Other operator

2.3 Promotional Strategy 43

2.4 Distribution Network 45

a Distribution Graphb. Network Coverage

Conclusion and Recommendations .. 47

Bibliography .. 48

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1: Introduction

1.1 Rationale of the Study

Banglalink is one of the leading cellular company in Bangladesh. It starts irs operation since2000. Within one year of launching it has become one of the leading cellular company by its

effective marketing mix. Effective segmentation and target market strategy it easily go to the

knock of the people by introducing various package for the customers. The company sets the

price effectively. As a result people from various societies can get the facilities of cellularcompany. For the promotional sector banglalink presents itself as a icon to the other

companies. Within a very short time it spreads its network coverage and maintain an indirect

distribution channel to reach the consumers.

It is very important to evaluate the marketing mix of banglalink.

As a student of Management we feel it is very important to study a reputed company in order

to match theoretical knowledge with real world situation.

1.2 Objectives

The objectives of this paper are as follows:Provide an overview of the banglalink

To evaluate the marketing plan of the banglalink.

To identify the factors influencing on the marketing plan of the company.

To find out the strategies need to implement for achieving its long term goal.

1.3 Methodology

The study covers the operation of banglalink. Moreover, history of banglalink, Its prospects

in Bangladesh, its operational issues and problems, mission, vision and objectives of the

company are also covers. A detail of functional activities of banglalink. is provided to get an

understanding of the organizational structure and activities of FMCG Company.

For this study information is collected from both primary and secondary sources. Investor

relations section of the Website www.banglalinkgsm.com is an immense source ofinformation about Nestl.

As a student of MBA due to time constraint comprehensive study based on information

collected from primary source is not possible by us. So, we interview some of the marketing

executives to get an idea of operations and issues in the company.

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CHAPTER:2 Introduction of BANGLALINKWhat It IsBanglalink is new brand name of Shebaworld (019), which has been providing Global

Service of Mobile (GSM) in the country since 1998. Orascom Telecom bought 100% shareof Sheba Telecom and gave its new name as Banglalink aiming to provide quality service inBangladesh.

Behind BanglalinkORASCOM TELECOM is one of the most dynamic telecommunications powerhouses inthe world. Orascom is based in Egypt and has operations in 11 countries worldwide.

Established in 1998, it is today the largest capitalized company on the Cairo & AlexandriaStock Exchanges with over 11 million subscribers worldwide. It has grown to be one of the

largest and most diversified GSM network operator in the Middle East, Africa and Asia

Mission

To deliver innovative, customer focused products and to be the benchmark for customer service

excellence.

Vision

To be the best-quality Service Provider in the country.

Sales and Marketing

The Sales& Marketing department functions in different categories such as Research &

Product Development, Marketing Communications, Corporate & Direct Sales, Channel

Management, FWT & Backbone Solutions, Logistics & Trade Support, InternationalRoaming etc.

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Sales and marketing is responsible for setting up of the sales channels and mechanisms bywhich the services packages are actually sold to the customers. This department also deals

with corporate sales. This department however deals mainly with sales to corporate

customers and maintenance of relations with both current clients as well as counting outpotential new corporate clients, whereas the after sales service and other issues are dealt with

by the customer services operations section of the company. This department also has the

very important job of setting up marketing channels by which packages are distributedamong clients and feedback is obtained from customers. This department is responsible for

the selection of dealers and motivating them to promote banglalink packages to the

customers in their respective areas. Brand Marketing and Research & Product Development

id responsible for all the promotional activities of banglalink products, developing brandimage and also designing new packages.

Customer Care:

Customer Care Department is responsible for coordinating all sorts of customer supportactivities. Its primary task is to ensure that challenging goals are set for each sub-department

according to the organizational aims and each employee understands his or her role in

supporting the customer. CCD has a responsibility to ensure smooth coordination between

the activation, servicing and bill collection activities. CCD operated in different sections suchas front office, activation and Verification, collection and retention, call center etc.

Call Center is a 24hours service provided to the customers where a customer can easily callto the hunting numbers and ask for any sort of queries & clarification. Call Center Agents try

to solve the customers problem instantly if possible or guide them accordingly.

Another functional area under the Customer Care Department is Workshop where faultyhandsets are repaired.

Engineering

This department is responsible for installation and maintenance of all the telecommunication

equipments and the telecom channels required for providing services to customers.

Finance:

This department is responsible for co ordination of various finance and Fund management

activities of Banglalink. This Includes LC and purchase fund

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the growth of the customer base. Banglalink now offering different packages for thecustomers but at the begging year they offered packages as well as different mobile sets for

the customer.

Market Needs:

Banglalink is providing a wide range of services for its valued customers. The company

seeks following benefits that are important for its customers:

Quality Service: Banglalink is providing quality service to the employers. The customers

dont like the network problem and slow networking system. Banglalink recruits high

professional employees and experts to make the network available for the customers. It is thecompany which expands its network all over the country within the shortest period of time

after starting its operation. Banglalink is committed to its customer about the quality service.

Customer Service: Banglalink has both online and physical customer care service for its

customers. The valued customer can solve the problems over mobile phone dialing 121. It

has also customer care service all over the country mainly in the city areas. But the centersare too limited to meet the huge demand. Now at this banglalink is expanding its customer

care centers and upgrading its quality. Banglalink is committed to meet the customer demand

and problem as soon as possible.

Service at Low Price: Before Banglalink starts its operation the tariff was higher than any

other period. At that time the three mobile companies charged tk. 6 for per minute outgoing

calls and tk.2 for per sms. But the company was committed to provide quality service at alowest price. As a result Banglalink is the fastest growing telecom company in Bangladesh.

This is because of providing quality service at a lowest price.

Market Growth

Though the call rate tariff is reducing due to the heavy competition in the telecom market, themarket is widening day by day as the number of mobile users are increasing and there is a lotof scope to develop this sector. Banglalink is the fastest growing telecom sector in

banglalink. Sheba Phone became Bnglalink in 2005 when ORASCOM graphed the company.

At the time launching as the name of Banglalink there was only a few thousand customersbut within the three years its number of customers has raised more than 4 million. Banglalink

is the second largest telecom company operating in Bangladesh.

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Product Life cycle

The process of developing and maintaining a fit between an organizations goals and thedynamic environment is the strategic planning.

Marketing strategy is the means by which a marketing goal is to be achieved under theobservation of the position of the product.

Today understanding customer is crucial, but it is not enough. Under the marketing concept,companies gain competitive advantage by satisfying target consumer needs better thancompetitors do. Thus, marketing strategies must consider not only the needs of targetconsumers, but also the strategies of competitors.

To prepare a marketing strategy it is necessary to know the position of the product in itsProduct Life Cycle.

Figure # 8: Product Life Cycle of banglalik

Comparing the external environment BANGLALINKs product is placed at thegrowth stage of its life cycle. Knowing this position will help to determine whichstrategy is to apply.

Market share of BANGLALINK is growing at a positive rate in total market. Thatmeans the overall growth rate compare to over all market BANGLALINK is in theGrowth Stage. From the information provided that BANGLALINK is in DOG situation.

Companys objective must be profitable growth. Since marketing has the mainresponsibility to achieve profit and lay down strategies for capturing them,BANGLALINK has followed the same technique in the operations. The companyposition dictates the companys growth strategies.

3.1.b SWOT ANAYSIS

PLC

0

510

15

20

2530

35

40

intro

duction

grow

th

maturity

Dec

lice

SALE

S

sales

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Strength

- Company Image

- Existing Channel

- Well Management capability

- Expert Marketing people

- Skilled worker

- Capability to Finance

Weakness

- Lack of experience

-

- Short of sales people

Opportunity

- New products Idea

- Large Market

- Availability of raw materials

- Bankable Project

- Low price of raw materials

Threats

- Political unrest

- Extortion and rising crimes,

- New Competitors

banglalink made a revelation in the telecommunication sector. Citycell was the first to starttelecommunication business in Bangladesh in 1989. GP and Aktel started their businessfrom 1997 & 1998. The service charge was great but the facilities was few. Banglalink made

the history by inviting varity of services at a very cheaper rate.

GrameenPhone

AKTEL

Banglalink

Teletalk

Warid Telecom

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3.1.c Competitors


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GrmeenPhone is the leader of the mobile market but banglalink is the second

biggest company in Bangladesh. Banglalink is the main competitor in the

mobile market.

The market research also concludes that although banglalink is not the

market leader in telecommunication market, they are the Market Challenger,

as the following figure shows the market share of banglalink in the

telecommunication market

Figure # 9: Market share of banglalink in compare with others

The firms that are not in the top most position but quite large, this runner up firms

can challenge the leader and other competitors in an aggressive bid for more market share,

and it is challenging the market. A market challenger first must define which competitors to

challenge and its strategic objective. A challenger can attack the market leader, a high-risk

but potentially high-gain strategy that makes good sense if the leader is not serving the

market well. To succeed with such an attack, a company must have some sustainable

competitive advantage over the leadera cost advantage leading to lower prices or the

ability to provide better value at a premium price. It could include a strategy of market

challenger.

banglalink s competitor to challenge the market is GRAMEEN PHONE (GP) and theirstrategic objective is To receive an economic return on its investment

COMPETITION SCENERIO OF TELCO

55%

27%

10%

6% 3% GRAMEENPHONEBANGLALINK

AKTELl

CITYCELL

TELETALK&WARID

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3.1.d Product

Package

Banglalink hasgot different type of customer oriented packages for the customers.Banglalink mainly two types of packages. They are

Pre-paid PackagesPost-paid Packages

Pre Paid Packages

Prepaid is a system where you pay for your phone calls in advance. Prepaid givesyou the freedom to use your mobile within your budget. It is an excellent way tospeak your language.

The products, banglalink Prepaid has network mobility feature which helps asubscriber to move around where banglalink has its coverage.

Know your prepaid packages here

Key Feature of banglalink Pre-Paid

No monthly subscription fee

One country one rate

30 days extra incoming facility once the validity is over and then 90 daysgrace period on scratch card and e-fill

banglalink is offering you the following Prepaid products to suit your connectivityneeds:

Pre-Paid M2M

Connection price Tk.150 with Tk.120 free talk time Mobile-to-Mobile incoming and outgoing. No monthly fixed charges Mobile-to-Mobile incoming free

Pre-Paid Standard

Connection price Tk.199 with Tk.120 free talk time Mobile-to-Mobile, T&T and ISD facilities. No monthly fixed charges BTTB incoming free

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There are three prepaid packages for the customers

Post Paid Package

Enterprise personal packages

banglalink constantly strives to provide you the best service at the most affordableprice. You can now choose the appropriate package based on your need and usagepattern.

change of package name: All previous banglalink postpaid customers are now

personal package 1 customers. Similarly, all banglalink postpaid 600 and 1200customers are now personal package 2 customers and banglalink call & controlcustomers are now personal call & control customers.

Call charges:

personalpackage 1

personalpackage 2

personal call &control

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banglalink desh

banglalink desh rang

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Monthly line rent/Minimummonthly bill*

100 1,000* 50

Outgoing call (BL-BL)00:00 to 9:00 hrs**

08:00 to 23:00 hrs23:00 to 08:00 hrs

0.29/min

1.50/min1.50/min

0.29/min

1.40/min1.40/min

0.29/min

1.60/min1.00/min

Outgoing call (BL-others)08:00 to 23:00 hrs23:00 to 08:00 hrs

1.85/min1.50/min

1.40/min1.40/min

1.95/min1.50/min

Number of FnF 4 5 3

FnF: 24 hrsBL to BLBL to other mobiles00:00 to 9:00 hrs BL to BL**

0.59/min0.79/min0.29/min

0.59/min0.79/min0.29/min

0.59/min0.79/min0.29/min

PulseBL to BLBL to others

1 second30/30/15

1 second1 second

1 second30/15/15

SMSBL to BLBL to othersBL to international

0.75/SMS1.00/SMS1.62/SMS

0.75/SMS1.00/SMS1.62/SMS

0.75/SMS1.00/SMS2.00/SMS

You can enjoy the discount every month as mentioned in the following table:

Length of stay with banglalink

Monthly outgoing voice calls(Excluding T&T charge, Roaming & VAT)

Tk.401-1500 Tk.1501-3000 Tk.3001+

More than 2 years 10% 12% 15%

More than 1 year,Less than 2 years

8% 10% 12%

Less than 1 year 7% 8% 10%

3.2. Marketing Strategy

3.2. a Mission

To deliver innovative, customer focused products and to be the benchmark for customerservice excellence.

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Banglalink mission is to provide clear and smooth telecommunication to the customers andmake the banglalink services available to all part of Bangladesh.

3.2.b Marketing Objective

o Maintain strong and positive growth.

o Achieve a steady increase in market penetration.

o Hold a strong market position within few years.

3.2.cTarget Market

Organization that sells to consumer and business markets cannot appeal to all buyers in

those markets or at least not to all buyers in the same way. Buyers are too numerous, too

widely scattered, and too varied in their needs and buying practices.

Incase of BANGLALINK, from teenager to any age group; from lower-middle class to

upper-upper; from Teknuff to Tetulia regardless to race, religion, gender literacy level, life

style or personality any and every single person who is in need of a telephone line backed

with affordability spend the expense of possessing a mobile phone is their target market.

This indicates that in choosing market segment, segmental marketing is appropriate

for them. That means the company should recognize that buyers differ in their needs,

perceptions, and buying behavior.

For this BANGLALINK have made a various type of customization in phone lines and

phone set along with different prices are charged against each segment of the target

market. Below the various types of mobile phone sets, lines, prices and the billing system

offered by BANGLALINK are discussed related to geographic, demographic, and psycho-

graphic segmentations.

Market Segmentation

Banglakink has the following segmentation bases:

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If we look at to the segments from the geographic angle we find that it started its

service from the capital of Bangladesh Dhaka city. Then it extended its coverage area into

Chittagong, Sylhet, Khulna, and gradually the 61districts of the country. Although Banglalink

is covering most of the part of the area, still they left 3 more districts.There are government

restriction for the network coverage of those hill traces areas

22-30 4,500-10,000 Desh & LF

30-35 10,000-25,000 Desh & Enterprice

35 & above 25,000 & above Enterprice

Table # 2: Segmentation Analysis

As to segment the cellular phone consumers psychographic segmentation plays the

most important role. Psychographics segmentation divides consumers into different

segments based on social class, life style or personality. It is very important to design the

products and services of mobile company according to the consumers psychographic

factors

Figure # 4: Over All Segmentation

But now at this time Banglalink is emphasizing on demographic segmentation.

3.2. eMarketing Mix

Pricing Strategy

Over AllSegmentation

Middle incomegroup31%

Serviceholders17

%

YoungPeople44

%

Others 4

%

HouseWives4

%

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There are five heavy weight companies in the market and as a result banglalink hasto be very careful in setting the price of the packages.

Strategy for the new packages

We know there are two strategies to set price. Market skimmingthat is setting priceat the highest level that accompany can set. And the penetration pricing that issetting the lowest price for the new product.

Banglalink follows the penetration strategypenetration strategy to set the price. Banglalink offers the

lowest price in the market. Because of the market is very competitive and the

company has to hold the market share. On the other hand the consumers want the

cheaper rate. As a result the company selects the lowest price and become

successful in this regard. In 2002 it was a new cellular company and within a quick

time it becomes the second largest company because this is the cheapest among

the six.

OperatorsRate

Warid CityCell Aktel BanglaLink GrameenPhone

TeleTalk

PackageRate

Tk.150 Tk.1395 Tk240 Tk.150 Tk240 Tk.260

This price is for M2M connection.(Data of the month September 2007)

. Special strategy for pricing

Flexible Pricing:

Banglalink offers flexible pricing for its different packages. It has segmented its

market according to its customer income level and sets the price accoirdong to the

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target market. As ladies first is targeted for the women and prcing at 150 taka ahere

as the Enterprice is for the business men and the price rate is tk. 1000.

Odd Pricing

Banglalink follows odd pricing for the package. Instead of even prcing it maintains

odd prcing like instead of tk. 200 it sets tk. 150.

. Discount

Setting the price for the call charge and package price it always offer discounts.

Some discounts are 20% out going call free on the basis of the total incoming call. Tk. 120 free for the every new connection. Offer special discount for the ladies first users at selected outlets. Tk.100 FREE talk-time for new Enterprise connections All incoming calls including T&T are absolutely FREE Up to 15% monthly loyalty discount on airtime Free talk to any banglalink on every Friday and Saturday from 1 am to

7 am but sorry to say this offer is not applicable for the recent time. Unlimited lifetime for any amount of recharge. (at least Tk. 10)

Factors affecting Price determination

Estimated Demand

Banglalink always estimate the demand of the consumers and sets price

according to meet the demand. When the new product come into the

Market people often less likely to buy the product.

Competitive Reaction

The market is very competitive in deed and as a new company it has to compete

with the five potential companies. Setting the price BL always sincere about the

competitors action. When Grammen offered the lowest out going call rate it also

reduced the call rates.

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Cost:

Total cost is a major factor in selecting the price of the package. Different types of

cost like fixed costs, variable costs, total cost is a primary factor that influence the

price of each product and keeping touch with these factors and ways banglalink

always use penetrating strategy for its call charge. It can be better observed from the

following chart

Call Rate of banglalink Relative to other Operators

OperatorsRate

Warid Aktel BanglaLink Grameen

Phone

TeleTalk

PackageRate

Tk. 1.20 Tk.1.19 Tk.1.15 Tk.1.20 Tk.1.20

Off-Pick

Hour(1st

Minute)

Tk.1.00 Tk0.30 Tk.0.29 Tk.0.60 Tk.0.30

Advertising & Promotion

Banglaink basically undertakes advertisement on basis of their product. They usemainly non persnal advertisement communication like

1. Print Media (Newspaper, Magazine, etc.)

2. Broad Cast Media (TV Media, FM radios)

3. Online Media(Internet)

4. Display Media (Sign Board, Bill Board, etc)

Their advertising strategy is like Brand Promotion, Sales Promotion, Good Will

building, Network extension notice, Inform Value added service etc.

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They also use personal or direct marketing only for their corporate clients

usage; this will help them to get discounts in different shops and stores.

On the occasion of different religious and cultural festivals Banglaink can provide

greetings through leaflets, festoons, banners and so on as a public relation to

their existing and potential customers.

Another kind of promotion they can initiate to make their existing customers loyalwho make a remarkable level of revenue, Banglaink can provide offerings, such asDiscount Card. They will provide subscribers discount cards, as a reward of their

substantial use of the service.

banglalink also became a leader in terms of its advertising quality and setting veryhigh standards for competition and others. The corporate TV commercial of "dinbodol" based on the theme "making a difference in people's lives", touched everyonethrough out the country and was adjudged the best TVC of the year according to theleading dailies of the country like Prothom Alo and New Age. This TV Commercialhas become a matter of national pride for Bangladesh as it has been nominated forthe best TV Advertisement of the year with 4 other international televisioncommercials at the GSMA Award 2007. GSMA Award is considered to be the Oscarof mobile industry.

Implementation:

The following milestones identify the key marketing programs at is important toaccomplish and implement by banglalink marketing department.

Conclusion

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Banglalink as a novice cellular company has improved its condition within a veryshort time. It was done because of the right decision and proper marketing policy ofthe company. The marketing plan of the company has proven right for theorganization because its spreading its business gradually.

But still its not the biggest cellular company in the country. GP is the leader in themarket and banglalink has got lot of aspect to improve the situation. TO be themarket leader banglalink must be very careful in the field of marketing plan and thesuccess of the company is a matter of subject that how they are implementing theplan.

Bibliography

1. www.banglalinkgsm.com

2. Marketing Management 12e- Philip Kotler & Keller

3. Fundamental of Marketing Philip Kotler

4. Marketing 13 Edition - Etzel, walker &Stanton

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5. Arian-Marketing-Plan-of-Bang-La-Link-

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