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Transcript of Mkt 460 Project
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BANGLALINK
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1.0About Us1.1Introduction
Orascom telecom Bangladesh limited ("Banglalink") is a 100% owned subsidiary of Orascom
telecom holding s.a.e., Egypt, ("oth") in Bangladesh. it was acquired by oth in 2004, and after a
complete overhaul and the deployment of a new Gsm network, its telecommunication services
were re-launched under the brand name Banglalink. When Banglalink began operations in
Bangladesh in February 2005, its impact was felt immediately: overnight mobile telephony
became an affordable option for customers across a wide range of market segments.
Banglalinks success was based on a simple mission: "bringing mobile telephony to the masses"
which was the cornerstone of its strategy. Banglalink changed the mobile phone status from
luxury to a necessity and brought mobile telephone to the general people of Bangladesh and
made a place in their hearts. The mobile phone has become the symbol for the positive change inBangladesh.
This positive change that is quite correctly attributed to Banglalink has become the corporate
positioning of Banglalink and is translated in their slogan "making a difference" or "din bodol".
"Making a difference" not only in the telecom industry, but also through its products and
services, to the lives of its customers. This corporate stance of "making a difference" has been
reflected in everything Banglalink does.
Banglalink attained 1 million subscribers by December 2005 and 3 million subscribers in october
2006. in less than two years which is by December 2007, banglalink overtook Aktel to become
the second largest operator in Bangladesh with more than 7.1 million customers. Banglalink
currently has 14.22 million subscribers as of march 2010, representing a market share of 26%.
growth over the last years have been fuelled with innovative products and services targeting
different market segments, aggressive improvement of network quality and dedicated customer
care, creating an extensive distribution network across the country, and establishing a strong
brand that emotionally connected customers with banglalink.
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1.2 Background
In Bangladesh, Banglalink aims to understand peoples' needs best and develop
appropriate communication services to improve peoples' life and make it simple. All our
work is aimed towards meeting our vision. All members of the Banglalink family are
highly passionate individuals, fully committed to achieving the vision that we have set
ourselves. Our customers' needs matter most to us- making their life simple and
improving it is all we want. To ensure our vision is achieved, we have set ourselves a few
values, we want to be
Straight Forward
Reliable
Innovative
Passionate
All the Banglalink family members have one thing in common- a passion to serve. We wantto go that extra mile, so that you can have the best possible service
investing in the future of Bangladesh. The biggest barrier today for people is the cost of
handsets. We will strive to lower the total cost of owning a mobile. We are here to help make
a difference in people's lives by providing affordable and reliable connectivity solutions. We
will strive to connect people and link their lives by listening to them and by understanding
their needs. We are here to help you speak your language.
1.3Incorporation of Banglalink
Orascom Telecom Holding purchased 100% of the shares of Sheba Telecom (Pvt.) Limited
(Sheba) in March 2005. OTH operates a GSM network in Bangladesh and provides a range of
prepaid and postpaid voice, data and multimedia telecommunications services. As of March 1,
2005, Banglalink served approximately one core subscribers. Banglalink estimates that it had
8.3% market share of total mobile subscribers in Bangladesh
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1.4 Operating License
Banglalinks license is a nationwide 15-year GSM license that expires in November
2011. It was acquired for US$ 60 million and re-branded and launched its services under
Banglalink in March 2005.
2.0Situation Analysis:
Banglalink have started its first operation in Bangladesh in 2005. The products have been well
received and the marketing is the key to the development of its brand image as well as the
growth of the customer base. Banglalink now offering different packages for the customers but at
the begging year they offered packages as well as different mobile sets for the customer.
2.1 Market Summary
Banglalink possess good information about the market knows a great deal about the common
attributes of the most valued customer. Before launching its experienced and prompt sell and
marketing force observed the market carefully and better understood who is served, what is their
specific needs and the way to communicate with the customers need and demand.
2.1.1 TARGET CUSTOMER
Pre-paid package Banglalink desh- targeted towards the mass
Post- paid package banglalink post-paidtargeted towards the mass banglalink businesstargeted towards the corporate banglalink SME-targeted towards the small& medium entrepreanuer Banglalink PCO-targeted towards the phone booths business Banglalink Icon- targeted towards the customers who are capable of billing more than
Tk. 3500 per month
http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=103http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=104http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=106http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=106http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=104http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=103 -
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2.1.2 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 customersdont 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 the
company 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 itscustomers. 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 anyother 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 a
lowest price. As a result Banglalink is the fastest growing telecom company in Bangladesh.
This is because of providing quality service at a lowest price.
2.1.3 Market Trends
The telecom industry world over has grown and evolved at an incredible pace and has
considerably changed the way people interact. Although, fixed line is still the most penetrated
telecom segment; wireless or mobile segment has been the key contributor over the last decade,
offering a wide range of opportunities to provider and services to customers. Banglalink has set
up its network in many major cities and also in rural areas. Banglalink has come up with new
tracking device in the network and thus made it easier for many businesses to perform their work
efficiently. The shift of revenue from fixed to mobile and from voice to data is accelerating.
Driven by strong mobile and broadband penetration in emerging markets and substantialeconomic recovery in developed markets, global telecom industry is expected to see double digit
growth over the next four to five years.
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2.1.4 Market Growth
Though the call rate tariff is reducing due to the heavy competition in the telecom market, the
market is widening day by day as the number of mobile users are increasing and there is a lot of
scope to develop this sector. Banglalink is the fastest growing telecom sector in banglalink.
Sheba Phone became Banglalink in 2005 when ORASCOM graphed the company. At the time
launching as the name of Banglalink there was only a few thousand customers but within the
three years its number of customers has raised more than 4 million. Banglalink is the second
largest telecom company operating in Bangladesh.
2.2 Market Analysis
2.2.1Comparing the external environment
BANGLALINKs product is placed at the growth stage of its life cycle. Knowing this position
will help to determine which strategy is to apply.
Market share of Banklalink is growing at a positive rate in total market. That means the overall
growth rate compare to overall market BANGLALINK is in the Growth Stage. From the
information provided thatBANGLALINK is in DOG situation. Companys objective must be
profitable growth. Since marketing has the main responsibility 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
2.2.2 Business Strategy Typology (BST)
Prospectors- Prospector organizations face the entrepreneurial problem of locating andexploiting new product and market opportunities. These organizations thrive in changing
business environments that have an element of unpredictability, and succeed by constantly
examining the market in a quest for new opportunities. Moreover, prospector organizations
have broad product or service lines and often promote creativity over efficiency. Prospector
organizations face the operational problem of not being dependent on any one technology.
Consequently, prospector companies prioritize new product and service development and
innovation to meet new and changing customer needs and demands and to create newdemands. The administrative problem of these companies is how to coordinate diverse
business activities and promote innovation. Prospector organizations solve this problem by
being decentralized, employing generalists (not specialists), having few levels of
management, and encouraging collaboration among different departments and units.
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Analyzer- Analyzer organizations share characteristics with prospector and defenderorganizations; thus, they face the entrepreneurial problem of how to maintain their shares in
existing markets and how to find and exploit new markets and product opportunities. These
organizations have the operational problem of maintaining the efficiency of established
products or services, while remaining flexible enough to pursue new business activities.
Consequently, they seek technical efficiency to maintain low costs, but they also emphasize
new product and service development to remain competitive when the market changes. The
administrative problem is how to manage both of these aspects. Like prospector
organizations, analyzer organizations cultivate collaboration among different departments
and units. Analyzers organizations are characterized by balancea balance between
defender and prospector organizations.
Defenders- Defender organizations face the entrepreneurial problem of how to maintain astable share of the market, and hence they function best in stable environments. A commonsolution to this problem is cost leadership, and so these organizations achieve success by
specializing in particular areas and using established and standardized technical processes to
maintain low costs. In addition, defender organizations tend to be vertically integrated in
order to achieve cost efficiency. Defender organizations face the administrative problem of
having to ensure efficiency, and thus they require centralization, formal procedures, and
discrete functions. Because their environments change slowly, defender organizations can
rely on long-term planning.
Reactor- Reactor organizations, as the name suggests, do not have a systematic strategy,design or structure. They are not prepared for changes they face in their businessenvironments. If a reactor organization has a defined strategy and structure, it is no longer
appropriate for the organization's environment. Their new product or service development
fluctuates in response to the way their managers perceive their environment. Reactor
organizations do not make long-term plans, because they see the environment as changing
too quickly for them to be of any use, and they possess unclear chains of command.
Byanalyzing all the business strategies, we found out that Banglalink acts as an Analyzers.
Banglalinkalso acts as a prospector by continuously innovating products and different services
like the new package of them known as the Banglalink icon package. In this package they are
targeting those elite people who has the capability of billing more than taka 3,500 every month.
On the other hand, like a defender they are defending their market share, by defending their call
rates like the other competitors in the competitive market.
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2.2.3 Marketing Strategy Typology
Aggressive marketers- Aggressive marketers promote their products very forcefully. Theydo no concentrate on advertising. They offer high value product with premium price. Such
marketing strategy is followed by Grameen Phone as they as they are knowledgeable about
marketing and not afraid of spending.
Mass marketers- Mass marketing is a market coverage strategy in which a firm decides toignore market segment differences and go after the whole market with one offer. Banglalink
is an example for such marketing strategy.
Value marketers- The value of a product is the mental estimation that a consumer persistabout it in their mind. Thus the value marketers try to offer high value products but at low
price. City cell falls under this strategy. Such marketers market the value more than the price.
They promote the product in exclusive places.
Marketing minimizer- market minimizers are those who do not appreciate marketing at all.They rather consider it just to be an expense. Teletalks follows this marketing typology.
If we look carefully into the marketing strategies of Banglalink, we will notice that Banglalink is
being a mass marketer. They are marketing their services in a mass amount in every corner of
Bangladesh. They are visible throughout the year not only in televisions, but also in radios,
billboards and print mediums. They also sponsor certain events and also finance small shops. By
summing all their marketing strategys we can say that Banglalink is definitely a mass
marketers.
2.2.4 Product Life cycle
The product life cycle goes through multiple phases, involves many professional disciplines, and
requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a
product in the market with respect to business/commercial costs and sales measures. To say that
a product has a life cycle is to assert four things:
that products have a limited life, product sales pass through distinct stages, each posing different challenges, opportunities,
and problems to the seller,
profits rise and fall at different stages of product life cycle, and Products require different marketing, financial, manufacturing, purchasing, and human
resource strategies in each life cycle stage.
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The four main stages of a product's life cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are very high2. slow sales volumes to start3. little or no competition4. demand has to be created5. customers have to be prompted to try the product6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies of scale2. sales volume increases significantly3. profitability begins to rise4. public awareness increases5. competition begins to increase with a few new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result of production volumes increasingand experience curve effects
2. sales volume peaks and market saturation is reached3. increase in competitors entering the market4. prices tend to drop due to the proliferation of competing
products
5. brand differentiation and feature diversification is emphasized tomaintain or increase market share
6. Industrial profits go down
4. Saturation and
decline stage
1. costs become counter-optimal2. sales volume decline or stabilize3. prices, profitability diminish4. profit becomes more a challenge of production/distribution
efficiency than increased sales
The process of developing and maintaining a fit between an organizations goals and the
dynamic environment is the strategic planning.
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Marketing strategy is the means by which a marketing goal is to be achieved under the
observation 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 than
competitors do. Thus, marketing strategies must consider not only the needs of target consumers,
but also the strategies of competitors.
To prepare a marketing strategy it is necessary to know the position of the product in its product
life cycle.
Comparing the external environment BANGLALINKs product is placed at the growth stage of
its life cycle. Knowing this position will help to determine which strategy is to apply.
Market share of BANGLALIN K is growing at a positive rate in total market. That means the
overall growth rate compare to overall market BANGLALINK is in the Growth Stage. From the
information provided that BANGLALINK is in DOG situation.
Companys objective must be profitable growth. Since marketing has the main Responsibility to
achieve profit and lay down strategies for capturing them, BANGLALINK has followed the
same technique in the operations. The company position dictates the companys growth
strategies
2.2.5 SWOT
2.2.5.1 Analysis of Strengths:
Banglalinks all connections are ISD & EISD: Its a big strength of Banglalink. Its
the only SIM which has such a versatility of connections having ISD, Economy ISD servicealong 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
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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.
2.2.5.2Analysis of Weaknesses Lower number of human resource: The number of employee of Banglalink is too much lower
regarding its requirement. As a result the service quality and customer satisfaction go down.
Failed to identify difference between developed market and developing market: Banglalinkfailed to identify the difference between developed market and developing market. There
strategy making is not match with the current situation.
Weak management system: poor coordination among different functional department
of Banglalink as result service efficiency goes down.
The progress of development of network is far below from the subscriber expectation: the
expansion of network coverage is too much slow. People thought that Banglalink should use the
GSM network facilities; as a result Banglalink can cover the most of the area of Bangladesh.
2.2.5.3 Analysis of Opportunities
Banglalink can use the image of multinational organization: People want to better facility from
service industry. So Banglalink can use such kind of soft corner of consumers and promote the
service to them.
Introduction of new technology and services: Banglalink can implement new and consumer
oriented technology in this sector. Because people have inclination to new and modern
technology. Now a days people are ready to accept the new thing.
Expand the market in the rural area: Till now there is huge area is remain out of coveragewhere a huge number of target consumers are available. So Banglalink can bring that respective
area under coverage and catch those potential consumers.
Banglalink can use the experience of multinational one of the old and experience organization
in Bangladesh telecommunication sector. They have special experience about the consumer
behavior of Bangladesh. They know about the consumers need and want.
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Banglalink can use soft switch network: The soft switch network separates the bearer and
control layers and a soft switch centric network can be built on different types of bearer networks
such as TDM, IP and ATM unlike, legacy network that depend on a single specific switching
technology. Based on strategic planning and the developmental phase, an operator can select
suitable bearer mode technologies for different phases, from the perspective of long term
sustainable development, the IP centered soft switch network defines the future. So Banglalink
can use this technology and practice competitive advantage over rivals.
2.2.5.4 Analysis of Threat
An upcoming mobile service provider named WARID TELECOM a concern of Dhabi group: At
present Bangladeshi mobile sector is almost saturated , after that a new company named WARID
is going to starts its operation in Bangladesh which going to become a big threats to Banglalink
and other operators. The invention of technology which is new modern and consumer oriented: Technology is
changing with day run. It changes the consumers demand pattern by offering different attractive
features. As a result consumer shifts from one technology to other technology, which might
create a big problem to Banglalink and others.
Another invisible threat is land phone operator: In Bangladesh land phone operator is expand
the market with day run. People are switch from mobile to land phone operators. As a result
ultimately the number of mobile user is decreasing and create problem to the mobile operators as
well as Banglalink.
2.3 COMPETITORS
Banglalink made a revelation in the telecommunication sector. City cell was the first to start
telecommunication business in Bangladesh in 1989. GP and Aktel started their business
from 1997 & 1998. The service charge was great but the facilities were 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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GarmeenPhone 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 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 premium price. It could include a strategy of
market challenger.
banglalinks competitor to challenge the market is GRAMEEN PHONE (GP) and their Strategicobjective is To receive an economic return on its investment
2.4Product offering
Package
Banglalink has got different type of customer oriented packages for the customers, Banglalink
mainly two types of packages. They are
Pre-paid Packages Post-paid Packages
Pre Paid Packages
Prepaid is a system where you pay for your phone calls in advance. prepaid gives you the
freedom to use your mobile within your budget. it is an excellent way to control your
expenditure.
The products, Banglalink prepaid has network mobility feature which helps a subscriber to move
around where Banglalink has its coverage.
Key features of Banglalink pre-paid
no monthly subscription fee
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lifetime validity for all the prepaid customers who recharged after february 23rd 2007 Banglalink advance: advance credit feature in case of low balance
Banglalink offers you the following prepaid products to suit your usage pattern:
Banglalink desh Banglalink desh ek rate Banglalink desh ekrate darun Banglalink desh rangdhanu Banglalink desh 7fnf
Documents needed to subscribe to a banglalink prepaid package
dully fill up new subscription agreement form/registration form 1 (one) copy of passport size photograph national id (photocopy of both side) required information of a referral person (name, phone no & national id number of the
referral person)
Banglalink prepaid connection includes a starter kit with SIM card. Documents you need to
preserve carefully for future reference:
subscription form (subscribers copy) money receipt starter kit pack with subscriber identification module (sim), personal identification
number (pin) and personal unblocking code (puk)
Prepaid is a system where you pay for your phone calls in advance. Prepaid gives you the
freedom to use your mobile within your 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.
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 days Banglalink is offering
you the following Prepaid products to suit your connectivity needs:
http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=78http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=79http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=80http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=81http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=121http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=121http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=81http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=80http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=79http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=78 -
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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
There are three prepaid packages for the customers
9 am - 5 pm 5 pm - 12 am12 am - 9am
call rate
banglalink to banglalink tk. 0.99/min tk. 1.25/min * tk. 0.45/min
banglalink to other mobile tk. 0.99/min tk. 1.45/min * tk. 0.99/min
fnf rate (3 fnf to any operator)
banglalink fnf number tk. 0.45/min
other operators fnf numbertk. 0.99/min
sms rate
banglalink to banglalink tk. 0.50/sms
banglalink to other mobile tk. 0.50/sms
* For every call, a tk 0.30 charge will be applicable only once
Post- Paid Package
At Banglalink, we understand that your needs and usage patterns are unique. This is why we
believe in giving you choices so you can pick what you need. rather than offering you the same
solution as everyone else, our Banglalink postpaid packages are tailored to serve your exactpurposes and give you the best value for money.
Banglalink offers three post-paid packages
Banglalink post-paid
http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=103http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=103 -
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Banglalink business Banglalink sme Banglalink PCO Banglalink Icon
3.0 Marketing Strategy
3.1Mission
To deliver, innovative, customer focused products and to be the benchmark for customer service
excellence. Banglalink mission is to provide clear and smooth telecommunication to the
customers and make the banglalink services available to all part of Bangladesh.
3.2Marketing Objective
Maintain strong and positive growth. Achieve a steady increase in market penetration. Hold a strong market position within few years.
3.3Financial Objective
First identify the key performance issues for your organization from a financial perspective.
Then based on the key issues, identify performance targets and incorporate them into your
goal(s). Generally, financial goals will address overall profitability, return on investment, return
on equity, revenue growth, and overall financial strength of the company or some other pertinent
aspect of the organization's financial stature
.
3.4Target 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 widelyscattered, and too varied in their needs and buying practices.
In case 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.
http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=104http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=106http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=106http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=104 -
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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.
3.4.1Market segmentation
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 coveringmost 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
3.4.2 Comment
Banglalinks network is divided into six divided into six zones according to the division orders:
Dhaka Zone, Chittagong Zone, Khulna Zone, Sylhet Zone, Barisal Zone, and Rajshahi Zone.
As the present time Banglalinks has 135 base stations all over the country and it covers 61
district towns including all six divisional headquarters. The work relating to core network up
gradation was completed. The capacity of two switches in Dhaka and Chittagong was further
enhanced. The switch and base station controller processor was upgraded. The microwave link
between Khulna and Chittagong over the coastal areas was also completed in a fastest way,
within 1 year. This microwave link formed a loop in the Banglalinks network, enabling
Banglalinks to provide a more secured service to its valued subscribers. Since launching its
services, Banglalinks continued to rapidly expand its network well beyond meeting the license
obligations. The Banglalinks service was launching in Chittagong in 2005, Khulna Sylhet and
Barisal in 2005. in the northern region if the country , which has been traditionally neglected in
terms of telecommunications development, Rajshahi city, Bogra, Nator, and Noagaon have also
been connected with Banglalinks network. It sets amilestone in setting up its network. After oneand half year of launching as BANGLALINK it has widen its network coverage. This is again a
great success in providing a smooth networking system over a very short period of time.
But now at this time Banglalink is emphasizing on demographic segmentation. Over All
Segmentation Middle income group 31% Service holders 17% Young People 44% Others 4%
House Wives 4%.
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3.5 Marketing positioning
After the company has decided which market segment to enter with which product, it must
decide what positions it want to occupy a clear distinctive and desirable place relative to
competing products in the mind of target customers. The companys entire marketing program
should support the chosen positioning strategy.
Since if a product is perceived to be exactly like another product on the market,
consumers would have no reason to buy it, banglalink brings special features on the product as
well as significant various services that positioned the products in the target segments. Products
can be positioned with some positioning strategy. We find that banglalink has taken has taken
multi-various strategy to position its various product in the market.
It designed its products according to the usage occasion. Consumers can use banglalink
in specific occasions according to their need such as the international roaming gives theconsumers an opportunity to use their cellular phone in172 abroad countries. The products of
banglalink are available for certain classes of users
3.6Marketing Mix
Pri 3.6.1Pricing strategy
There are five heavy weight companies in the market and as a result banglalink has
to be very careful in setting the price of the packages.
Strategy for new packageWe know there are two strategies to set price. Market skimming that is setting price at the
highest level that accompany can set. And the penetration pricing that is setting the lowest price
for the new product. Banglalink follows thepenetration strategy penetration strategyto 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. Special strategy for pricing
Flexible pricingBanglalink offers flexible pricing for its different packages. It has segmented its
market according to its customer income level and sets the price according to the
target market. As ladies first is targeted for the women and prcing at 150 taka ahere
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as the Enterprice is for the business men and the price rate is tk. 1000.
Old PricingBanglalink follows odd pricing for the package. Instead of even prcing it maintains
odd prcing like instead of tk. 200 it sets tk. 150.
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.
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 to7 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)
Tk. 120 free for the every new connection.
Factors effecting priced 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 ReactionThe 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.
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.
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Pre-paid (Standard) Package :
Connection fee : 450.00 Tk. (20 Tk. Talk Time Free)
1st pulse for first 30 sec and 15 sec pulse onwards
Any other operator tk- .99/min [9-5 pm]
Any other operator, tk- 1.45/min [5-12 pm]
Banglalink to Banglalink, tk- .25/min [12-9 pm]
Banglalink to Other operator, tk- .25/min [12-9 pm]
20% Incoming bonus.
4 (FnF) facility in any operator ( Banglalink to Banglalink 0.25 Tk or Banglalink to
Other operator .79)
VAT will be added as usual
SME Enterprise Package :
Connection fee. 499.00 Tk (50 Tk. Talk Time Free,50 Free SMS)
20% Incoming bonus.
Any other operator, tk- .99/min [9-5 pm]
Any other operator, tk- 1.25/min [5-12 pm]
Banglalink to Banglalink, tk- .25/min [12-9 pm]
Banglalink to Other operator, tk- .25/min [12-9 pm
1 sec pulse banglalink to banglalink & 15 sec pulse other operator
Minimum Monthly Bill tk- 100
4 (FnF) facility in any operator ( Banglalink to Banglalink 0.25 Tk or Banglalink Other
operator .79)
Vat applicable
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PCO Package :
Connection fee : 600 Tk
1 sec pulse
Payment facility in Cash Card
Minimum charge 500 Tk
If monthly bill exceeds 2000 tk 5% exempted and if 4000 tk. 10% exe
3.6.2Distribution:
Banglalink doesnt sell its packages directly to its customer. Rather it maintains an indirect
distribution channel for the customer. It appoints dealer for sell. Through the dealers the
packages are distributed to the customers. Consumers can get the package through them.Banglalink always wants to sell its products as many as they can. As a result they try to make the
packages available as many outlets and retailers as possible. The distribution network of
banglalink is as follows
BANGLALINK
DEALERS (THROUGHOUT THE COUNTRY)
RETAILERS
UNLIMITED CUSTOMERS
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3.6.3advertising and promotion:
Banglaink basically undertakes advertisement on basis of their product. They use
mainly 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.
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 loyal who make a
remarkable level of revenue, Banglaink can provide offerings, such as Discount 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 very high standards
for competition and others. The corporate TV commercial of "din bodol" based on the theme
"making a difference in people's lives", touched everyone through out 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 Oscarof mobile industry.
3.6.3 PRODUCT
Different packages of Banglalink.
Personal package 1 (Post- paid) :
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.
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Personal package 2 (Post- paid) :
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
Duplicating mobile number facility
Up to 2 supplementary connections with attractive group talk rate.
Personal Call & Control (Post- paid) :
Usage through recharging scratch card/I top up
Lowest monthly fees
Helps you keep your usage within your control.
ISD and E-ISD:
All Banglalink Sims are ISD and it has opportunity to call only 7.50/= to 55 countries by
using 012 code called economy ISD.
Corporate Package:
Banglalink has around 40 corporate clients using prepaid or postpaid service.
International Roaming:
It has roaming facilities in 5 country also. The fortunate matter is that within one month it is
going to inaugurate roaming service in over 400 operators of 159 country.
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4.0Control:The purpose of banglalink marketing plan is to control
Revenue: monthly and annual
Expenses: monthly and annualCustomer satisfaction
New product development
4.1 IMPLEMENTATION
Implementation:
The following milestones identify the key marketing programs at is important to accomplish and
implement by banglalink marketing department.
4.2Contingency plan:
If under any circumstances the discussed plan for banglalink do not works out , the necessity
steps that banglalink should undertake will include merger or hiring expertise by outsourcing.
Merging will include that banglalink will merge with any other telecom company; in this way
they will be able to exist in the market, although they might be in loss.
On the other hand if banglalink wants to outsource expertise, then they will be hiring some
efficient person who has sound knowledge about the business and can help them to overcome the
trouble and re flourish in this sector.