Marketing Management (MKT 501)

Report On Money Transfer in Bangladesh

Submitted To

Abu Daud Khan

Course Instructor

MKT 501

Submitted By

Reshat Shabnam : ID: 10164024

Date of Submission: 1st September 2012

September 1st , 2012

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Abu Daud Khan

Course Instructor

BRAC Business School

BRAC University

Dhaka-1212

Dear Sir,

Here is the report that you have assigned us as a partial fulfillment of the course on

Marketing Management.The report is aimed to give an overview of segmentation,

positioning and 4Ps analysis of Money Transfer in Bangladesh.

We hope that the analysis that we have carried out is up to your expectations. It has

been an insightful experience for us and we tried our best to follow the tenets of

final report.

Sincerely yours,

Reshat Shabnam (ID: 10164024)

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ACKNOWLEDGEMENT

Having this report prepared was a team effort. But, first and foremost, we would like

to show our gratitude towards Abu Daud Khan, the faculty of Marketing

Management MKT 501 course. Had he not appointed us this assignment, we would

not have had so much of knowledge about how to prepare a well written formal

report that requires so much of intricate details and accuracy. Undoubtedly, this

assignment would help us in future in our career, thus preparing this report has

given us a great moral boost and confidence. We have gained thorough knowledge

about marketing management. We again thank our faculty for devoting his precious

time and knowledge to help us correctly prepare this report.

Finally we would like to thank all the people who have helped us gather information

about this term paper. It is for their assistance, that we have reached this stage in

finishing our report successfully.

Executive Summary

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The online money transfer system, has added Bangladesh to its network of 38

recipient countries as the country's dependence on migrant-senders increases. The

new World Remit online money transfer enables Bangladeshis to send money and

airtime top-up from the comfort of their own home using a variety of payment

methods including debit cards, credit cards and online bank transfers. It is a

convenient and low cost means of sending money back home. Bangladesh is the

seventh largest recipient of global remittances in the world, receiving $11.10 billion

in 2010 according to the World Bank. Migrant workers’ remittances also make the

biggest contribution to Bangladesh’s foreign exports, making up 13% of GDP in

2010. This figure could be even greater, as estimates from the World Bank suggest

high transfer costs by some services for remittances relative to the value sent

swallow up as much as $15 billion per year in developing countries.

Inter- Bank Transfer such as a Bankers’ Draft or Demand Draft (DD), Mail Transfer

(MT), Telegraphic Transfer (TT) , played the curicial role before introduction of

mobile money transfer system as well as newly introduced EFTN system . As a local

money transfer system S. A paribahan has got great level of popularity as well as

trustworthiness which does not directly affecting the our GDP growth.

Transfer of money from one location to another with the use of devices like

computer and /or mobile phones by Bangladesh Post Office. It is the replacement of

paper based traditional money order to satisfy the urgent need of the customer as

well as creating quick and regular flow of money through a trusted legalized

channel. Computer needs continuous supply of electricity. But it is a major problem

in Bangladesh especially in some rural areas. Bangladesh Post provides the

monetary solution named Electronic Money Transfer Service (EMTS) for those want

to send money instantly anywhere within the national territory. The current users of

this service are businessmen, migrant workers, students and some companies

bKash is designed to provide financial services via mobile phones to both the

unbanked and the banked people of Bangladesh. The overall bKash value

proposition is simple: a safe, convenient place to store money; a safe, easy way to

make payments and money transfers. Customers will be able to receive electronic

money into their bKash accounts through salary, loan, domestic remittance, and

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other disbursements and eventually will cash out the electronic money at any of the

hundreds of cash out agents which bKash assign.

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Table of Content

Description Page No

1. Introduction 01

2. Objective 01

3. Methodology 01

4. Limitation 01

4. bkas 02-09

5. S A Pribahan 09-12

6. Domestic Fund Transfer 12-14

7. Remittance 15-

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8. Bangladesh Post Office 18-20

9. Recommendation 20

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Introduction

Domestic and international fund transfer have emerged as a key driver of economic

growth and poverty reduction in Bangladesh, increasing at an average annual rate

of 19 percent in the last 30 years (1979-2008). Revenues from Domestic and

international fund transfer now exceed various types of foreign exchange inflows,

particularly official development assistance and net earnings from exports. The bulk

of the remittances are sent by Bangladeshi migrant workers rather than members

of the Bangladeshi Diaspora. Currently, 64 percent of annual remittance inflows

originate from Middle Eastern nations. Currently, 64 percent of annual remittance

inflows originate from Middle Eastern nations. Other than this domestic inflow has

made the remarkable success evidence on the economic growth

Objective

To identify Segment, target market, positioning as well as analysis the 4ps of

money transfer system with the special reference in Bangladesh.

Methodology

The methodology followed in this report is based on primary and secondary sources. The required information for the introductory and descriptive part has been collected by:

Primarily we collect data through:

Discussing and briefing with some professional bodies.

Secondarily we collect data from:

Following the official web site and some related Link of financial institution,

leaflet as well as take the help from Google through searching

Limitation

The major limitations of this study are:

Web base information does not organize enough to get full insight.

Printed data are not available for preparing the report.

It was very much costly to collect data.

Some extent Non-cooperative behavior of some officials of the

organization

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bKash

bKash Limited (a subsidiary of BRAC Bank) is a joint venture between BRAC Bank Ltd.,

Bangladesh, and Money in Motion LLC, USA. The ultimate objective of bKash is to ensure

access to a broader range of financial services for the people of Bangladesh. It has a special focus

to serve the low income masses of the country to achieve broader financial inclusion by

providing service that are affordable , comfortable and reliable

More than 70% of the population of Bangladesh lives in rural areas where access to formal

financial services is difficult. Yet these are the people who are in most need of such services,

either for receiving funds from loved ones in distant locations, or to access financial tools to

improve their economic condition. Less than 15% of Bangladeshis are connected to the formal

banking system whereas over 50% has mobile phones. These phones are not merely devices for

talking, but can be used for more useful and sophisticated processing tasks. bKash was conceived

primarily to utilize these mobile devices and the omnipresent telecom networks to extend

financial services in a secure manner to the under-served remote population of Bangladesh.

Product

Cash in

You need to have money stored in your bKash wallet to avail the services. So,

before doing any transaction, make sure you have sufficient balance in your wallet.

For putting money in your wallet.

1. Go to any bKash agent

2. Let him know the amount you want to Cash In

3. Write down your wallet number and the Cash In amount in Agent register

4. Pay the amount of money you want to cash in

5. In exchange, the agent will send bKash money to your wallet. Cash In done!

6. You and the agent both will get confirmation message. Remember to put your

signature in the agent register before leaving the counter

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Cash Out

If you have sufficient credit in your bKash wallet, you can withdraw cash anytime

from anywhere. To Cash Out from your wallet-

1. Go to any bKash agent

2. Let him know the amount you want to cash out

3. Write down your wallet number & the amount in Agent register

4. Dial *247# on your mobile for bKash menu

5. Choose “Cash Out”

6. Choose “From Agent”

7. Enter Agent’s wallet number (ask the agent)

8. Enter the amount

9. Enter your wallet PIN

10. Done! You and the Agent both will receive confirmation message.

Count the amount and put your signature in Agent register before leaving the

counter

Send Money

Send Money enables you to transfer money to other's wallet. Follow the steps below

-

1. Go to bKash Menu by dialing *247#

2. Choose 'Send Money'

3. Enter the wallet number you want to send money to

4. Enter the amount you want to send

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5. Enter a reference about the transaction. Do not use more than one word,

avoid space or special characters

6. Now enter your wallet PIN to confirm the transaction

7. Done! You and the Receiver both will receive confirmation message

Token

From Token option, you can create token to send bKash Money to someone who

does not have a bKash wallet. Afterwards, he can encash the token amount from

any bKash agent. Here is how you do it-

1. Go to bKash menu by dialing *247#

2. Choose Token

3. Choose 'Create Token'

4. Select a Photo ID type of the Receiver from the given options. The Receiver

has to show this ID while encashing the token

5. Enter the Photo ID number of the ID type that you have chosen earlier

6. Enter the amount you want to send

7. Confirm the amount and photo ID by pressing "1"

8. Now you need to give a Secret Code (not your PIN number, a different code

for this transaction only). It is better to be a number ranging from 4 to 8

digits. Along with the selected Photo ID type and number, the receiver will

need this code to encash the amount. Make sure that the Secret Code is

secret between you and the receiver only.

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9. Now enter your PIN to finish creating token.

10. You will get a confirmation message with details of the token you just

created

You have received your “Token Number” in that message which you will have to

communicate to the receiver along with the Secret Code provided by you during

creating the token. The receiver needs to go to a bKash agent along with his Photo

ID to encash the token in 14 days from its creation.

My bKash

You can check your bKash Account balance, see mini statement, change your bKash

Mobile Menu PIN, Activate ATM and change ATM PIN anytime you want from My

bKash option.

My bKash » Check Balance

To check your current account balance –

1. Go to bKash Mobile Menu by dialing *247#

2. Choose "My bKash"

3. Choose "My bKash"

4. Enter your Mobile Menu PIN

You will see your current and available balance of your bKash Account. My bKash »

Request Statement

You can see a Mini Statement with details of your latest transactions.

1. Go to bKash Mobile Menu by dialing *247#

2. Choose "My bKash"

3. Choose "Request Statement"

4. Enter your Mobile Menu PIN

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You will see the dates, types and amounts of your last 6 transactions My bKash »

Change Mobile Menu PIN

For ensuring the security of your bKash Account, it is recommended that you

change your bKash Mobile Menu PIN when you feel that it may have been

compromised. "Change Mobile Menu PIN" from My bKash gives you that option.

Here is how you do it -

1. Go to bKash Mobile Menu by dialing *247#

2. Go to "My bKash"

3. Choose "Change Mobile Menu PIN"

4. Enter your "Old PIN"

5. Enter a new PIN to replace the old one

6. Enter the new PIN again to confirm

You will see a confirmation message on your mobile that you have successfully

changed your Old PIN. My bKash » Activate ATM

To avail the ATM Cash Out service, you need to activate this feature from your

bKash Mobile Menu. After activation, you will be able to Cash Out from any bKash

enabled BRAC Bank ATM. To activate the service, follow the steps below -

1. Go to bKash Mobile Menu by dialing *247#

2. Go to "My bKash"

3. Choose "Activate ATM"

4. Enter a new PIN. This PIN will be your bKash ATM Cash Out PIN and is better

to be different than your Mobile Menu PIN

5. Enter the PIN again to confirm

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You will see a confirmation message on your mobile that you have successfully

activated the ATM Cash Out service. My bKash » Change ATM PIN

For ensuring the security of your bKash ATM Cash Out PIN, it is recommended that

you change it when you feel that it may have been compromised. "Change ATM

PIN" gives you that option. Here is how you do it –

Go to bKash Mobile Menu by dialing *247#

1. Go to "My bKash"

2. Choose "Change ATM PIN"

3. Enter your "Old PIN"

4. Enter a new PIN to replace the old one

5. Enter the new PIN again to confirm

You will see a confirmation on your mobile that you have successfully changed your

Old PIN.

Price

From (Taka) To (Taka) Charges (Taka)

50 100 5.00

101 300 10.00

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301 1,100 15.00

1,101 2,600 37.00

2,601 4,500 73.00

4,501 6,500 100.00

6,501 8,500 120.00

8,501 10,500 135.00

Over 10,500 1.25%

Registration No charge applicable

Cash In No charge applicable

Send Money (Individual) Tk. 2.00 (for any amount)

Cash Out from ATM 2% of transaction amount

Payment (Merchant) No charge applicable

Create Token (from Own Account) Tk. 5.00 (for any amount)

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Create Token (via Agent) Tk. 5.00 (for any amount)

Encash Token Same as Cash Out from Agent charges

Redeem Token (from Own Account) Tk. 5.00

Redeem Token (from Agent) Cash Out charge + Tk. 5.00

Registration No charge applicable

Cash In No charge applicable

Send Money (Individual) Tk. 2.00 (for any amount)

Cash Out from ATM 2% of transaction amount

Payment (Merchant) No charge applicable

Create Token (from Own Account) Tk. 5.00 (for any amount)

Create Token (via Agent) Tk. 5.00 (for any amount)

Encash Token Same as Cash Out from Agent charges

Redeem Token (from Own Account) Tk. 5.00

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Redeem Token (from Agent) Cash Out charge + Tk. 5.00

Promotion

1. University admission through bkash

2. Selecting agents in hotels & restaurants

3. Advertising

4. Direct marketing

5. Having contracts signed with agora, nando’s, prothom, hallmark alo makes

the publicity and advertising

Place

1. bKash points

2. Sundarban courier

3. Grameen Phone

4. Robi

5. Banglalink

6. Brac bank atms

7. Continental courier

S A Paribahan

S A Paribahan is one of the oldest and the leader in business of transportation,

courier service and money transfer in Bangladesh. It is providing successful service

since 1982 with the government authorization. It has more than 5,000 staff and 63

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branches all over the country. All branches of S A Paribahan are very careful to

deliver customers’ goods and money to their desired destination. Customers also

prefer courier and parcel services for quality and feel comfortable in sending goods

and money from one place to another.

Branches

The head office of S A Paribahan is situated at 23/25 Kakrail, Shantinagar, Dhaka. It

has 6 branches in Dhaka city- Mohakhali branch, Uttara branch, Elephant Road

branch, Mirpur branch, Malitola branch and Kakrail branch. Other branches are

situated at Narayangonj, Savar, Mymensingh, Jamalpur, Kishoregonj, Tangail,

Faridpur, Chittagong, Rajshahi, Khulna, Sylhet and Barisal.

Segment

A market segment consists of a group of customers who share a similar set of needs

and wants. There are three bases for segmenting consumer market – Geographic

segmentation, Demographic segmentation and Psychographic segmentation. Since

the product of this company is money transfer, geographically it focuses on most of

the districts in Bangladesh and demographically it focuses all generation, any type

of income people, both male and female, and any aged people. That means this

company does not focus any specific part.

Target Market

After evaluating different segments, the company can consider five patterns of

target market selection. These are: – Single-Segment Concentration, Selective

Specialization, Product Specialization, Market Specialization and Full Market

Coverage. In this case, its product is money transfer and its target market is several

different market segments. So the pattern of target market selection of this

company is Product Specialization. All classes of people are its target market.

Product Specialization

M1 M2 M3

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P1

P2

P3

Positioning

Positioning is the act of designing the company’s offer and image to occupy a

distinctive place in the mind of the target market. Its target market is all classes of

people but it can position of middle and lower class people. Because it is very easy

to money transfer through S A Paribahan. Customers go to the branch; they give

money and the desired destination, receiver’s name, mobile number and take a

memo. On the other side, receiver goes to the branch, proves his mobile number

and takes the money. So the process is so easy. Customers do not face any critical

process. The lot size of its product is various types and price is reasonable. For this

reason, middle and lower class people prefer more.

Product

The product is money transfer. The lot size of this product is Tk1,000 – Tk5,000;

more than Tk5,000 – Tk40,000; more than Tk40,000 – any amount. For urgent send,

this company sends money through T.T which is minimum Tk50 and maximum

Tk100,000.

Price

For Tk1,000 – Tk5,000, this company charges Tk15 per thousand.

For more than Tk5,000 – Tk40,000, this company charges Tk10 per thousand.

For more than Tk40,000 – any amount, this company charges Tk8 per thousand.

It charges Tk50 for any amount of T.T.

Place

When customers go to any branch, give it receiver mobile number and money for

sending their desired destination, the branch sends a memo to the desired

destination and after 24 hours that branch calls to receiver for collecting money. On

the other hand, all branches send memos and money to the head branch and

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according to memos the head branch distributes money among the branches. For

receiving and sending memos and money, they use their own transportation. For

urgent send, they send information by fax. So their channels are-

Branch Transportation Head Branch Transportation Branch

Promotion

The marketing communication mix consists of eight major modes of

communication.

But S A Paribahan does not use all the modes of communication for its money

transfer service. This company provides other services such as transportation and

goods courier service as well as those is very popular. At first, people came

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branches for transportation and courier purpose and they knew about its money

transfer service. Actually, people have known about this service by World - of -

mouth marketing mode. Recently, it has arranged an advertising program which will

telecast after few days. It also uses Direct marketing mode through internet.

Domestic Fund Transfer

Business industry and members of public are in frequent need of remitting fund

from one place to another for various purposes. Remittance of funds through banks

eliminates the hazards in transportation of cash from one place to another for

setting trade and private dues. On deposit of requisite funds and payment of the

required charge, a bank undertakes to make the remitted amount available to a

particular person or his order in a particular branch of the same bank or on other

banks with which it may have agency arrangement.

Various methods have been evolved by the banks for remittance of funds from one

place to another. Generally such remittance is effected by banks in three ways,

namely: (a) Bankers’ Draft or Demand Draft (DD), (b) Mail Transfer (MT), (c)

Telegraphic Transfer (TT).

In Bangladesh, most of the people live in the rural area where the banks are not

able to serve the online banking system. So, for transferring money from this type

of region people have to depend on TT, MT.

Bankers Draft (DD)

Bank Draft also called Demand Draft are equivalent to cash. Payment in drafts are

free from any ambiguity. Once the drafts are issued, the purchaser no longer

remains any party to the instruments.

MAIL TRANSFER (MT)

The Mail Transfer system is an arrangement by the banks to remit funds of the

customers from one place to another through ordinary postal channel. Banks

instruct their concerned branch to pay a certain amount to a specified person or to

his order. This service is availed by a remitter when he desires his bank to remit the

funds to the payee instead of purchasing a Draft himself.

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TELEGRAPHIC/ TELEX TRANSFER (TT)

Sometimes people are in urgent need of remitting money from one place to

another. In such cases, they prefer to remit money through Telegram/ Telex which

is called Telegraphic/Telex Transfer (TT). It is an internal arrangement by the banks

to remit funds through telex messages instead of postal messages.

Place

Sender Originating Bank Receiver’s Bank Receiver.

Price

For sending, 1- 25000 Tk, Charge: 69 Tk.

For Sending, (25000+ x thousand) Tk, Charge: (69+x) Tk.

Online Banking System

Online banking is an internet based account management service   that   allows to

view our account   balances and   transaction,   transfer funds between authorized

accounts, initiate loan payments and can include bill payment services.

Bangladesh Electronic Fund Transfer Network

Electronic Funds Transfer (EFT) is a system of transferring money from one bank

account directly to another without any paper money changing hands.

EFT Credits EFT credit entries occur when an Originator initiates a transfer to move funds into a

Receivers account.

For example, when a corporate uses the payroll service at a bank to pay the salary

of its

employee each month, the corporate originates the payment through the OB to

transfer the money into the account of the employee; the individual is the receiver

in this example.

Some other common credit applications are:

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• Inward Foreign remittances• Domestic remittances• Payroll private and government• Dividends/Interest/Refunds of IPO• Business to business payments (B2B)• Government tax payments• Government vendor payments• Customer‐initiated transactions

EFT DebitsIn an EFT debit transaction, funds flow in the opposite direction to the information.

Funds are

Collected from the Receiver’s account and transferred to an Originator’s account,

even though the originator initiates the entry.

Some examples of EFT debit application

• Utility bill payments• Equal Monthly Installments (EMI)• Government tax payments• Government license fees• Insurance premium• Mortgage payments

Place

Originator Originating Bank BEFTN Receiving Bank Receiver.

Price

This is the cheapest system for transferring money in Bangladesh.

Remittance

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Like many other developing countries, Bangladesh depends largely on the overseas

employment market to substitute the high unemployment rate in the country. Since

the 1970s, migration has been on an increasing trend in Bangladesh with

exponential growth recorded in the last decade. According to official records, in

1976, 6,087 workers went abroad, while in 2008 the number peaked to 875,000

workers and in 2009, about 475,000 workers migrated through official channels.

Similarly, remittances, which have emerged as the highest source of foreign

exchange earnings for the country, have also been growing to reach a record high

of approximately $10.72 billion in FY 2009. The major destinations are to the Gulf

countries Saudi Arabia, UAE, Kuwait, Qatar, Oman, Iraq, Libya, Bahrain, Iran,

Lebanon and Malaysia, Singapore, Hong Kong, South Korea and Brunei.

Anil Kapur, senior vice president of the US-based company's South and South East

Asia operations, said Bangladesh is now a top ten remittance receiver in the world. 

Bangladesh financial Institution is the main legal and official source for getting the

remmitance service. For providing this service financial institution has to develop a

bilateral agreement with the money transfer company such as Western Union

Money Transfer Services, Continental Exchange Solution (Ria Financial

Services), Xpress Money Services,Trans-Fast Remittance LLC, UK based

Money Transfer Companies ( AN Express Limited ,Rumana Money Services UK ,

UAE Exchange Centre LLC, Wall Street Exchange Centre LLC, Habib Exchange

Co.LLC, Lulu International Exchange), USA based Money Transfer Companies (

Wall Street Finance LLC , US Money Exchange), K.S.A (Kingdom of Saudi Arabia)

based Banking Partners ( Al Rajhi Banking Corporation , National Commercial

Bank , Bank Al Bilad) ,Italy based Money Transfer Company-National Exchange

srl.

Target market selection

Product specialization: the firm makes the certain product and that will sale to

different market. Here money transfer companies are proving the remittance

service to the different level of migrants from Bangladesh as well as Non resident

of Bangladeshi with the help of financial institution.

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Target customer: Migrant from the Bangladesh for the purpose of Job, study as well

as Dual passport holders whose used to send the money to their dearest one living

in Bangladesh.

Service

Remittance services are addressed as a people base service which is subject to be

intangible in the sense of money is transferring through an electronic manner. As

well as it cannot be stored because when beneficiary receives money from the

receiver at that time service level come to end.

Price: By definition price is the payment or compensation given by one party to

another in return for goods or services. Under this service sender convert the

foreign currency to taka by an exchange rate given by the Bank through Money

Transfer Company Such As Xpress Money. After that Bank will sale the received

foreign currency to the foreign exchange market. And this difference of monetary

value of receiving and selling the foreign currency price against the remittance

service for the Financial Institution. As well as Financial institution have make the

annual payment to the money transfer company according to the bilateral

agreement in the form of dollar. in addition Exchange rate is used to expressed in

the form of Price ending ( Example: USD/BDT: 85.00) as well as Price reference

(Example: USD/BDT: 85.50)

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Marketing Channel

At first remittance sender approach to money transfer company on the basis of

which bank is most nearest to his family members in Bangladesh or which money

transfer company is offering best exchange rate. After making all negotiations with

the money transfer company, sender is given the pin number which is subject to

send to the beneficiary. On the other hand money Transfer Company will send all

information regarding Beneficiary Name, amount of taka, Mobile number, and

passport No. sender name, sender country, Beneficiary address, Bank Name and

Branch. After having the pin number beneficiary will approach to bank which is

elected by sender for having the money against Beneficiary pin number as well as

full filling the beneficiary form. In this situation bank check the authenticity by

comparing information given by money Transfer Company with information on the

beneficiary form. If every thing is complying the presentation then bank officers

give money to the beneficiary against it he takes the acknowledgement from the

beneficiary.

From the above mentioned description and Diagram we can say remittance service

has to company the 2 level marketing channels for reaching to the beneficiary.

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Promotion

As per the online survey we have got to know most of remittance service oriented

financial organization follows the Web base marketing as well as gives the

information through leaflet. Some of the financial institutions have gone for TV

commercial such as Dhaka Bank, BRAC Bank. As well as every financial institution

use the flyer of exchange houses for informing the customers regarding particular

bank is proving the remittance service through the exchange houses.

Bangladesh Post Office

Bangladesh Post office is a government owned department dedicated to provide

wide range of postal products and public services. It is the premier national postal

communication service holding together a vast country with a large population.

Bangladesh post office started Electronic Money Transfer Service (EMTS) on March

26, 2010. However, in response of overwhelming demand, this service has now

been expanded in 2,750 post offices throughout the country including all district

Head Post Offices and Upazila Post Offices. This service has got wide acceptability

and popularity within a short period of time.

Branches

Now Bangladesh Post office is operating through 2,750 post offices to receive and

send money to customers. From next June they hope to provide the service through

5000 post offices.

Profit

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Bangladesh Post Office has earned 9 crore 23 lac taka from electronic money

transfer (EMTS) on its first year operation. It has earned 37 crore taka from EMTS in

its two year operation. They hope to earn 50 crore taka in this fiscal year.

Market Segmentation

Market segmentation is a marketing strategy that involves dividing a broad target

market into subsets of consumers who have common needs and applications for the

relevant goods and services. Bangladesh Post Office also segmented its target

market. The service is money transfer.

Basis for segmenting consumer markets

Geographic segmentation

The market is segmented according to geographic criteria—nations, states, regions,

countries, cities, neighborhoods, or zip codes. It is operating in almost all over

Bangladesh.

Demographic Segmentation

Demographic segmentation consists of dividing the market into groups based on

variables such as age, gender, family size, income, occupation, education, religion,

race and nationality. It is targeting all the variables but in income level it is

targeting the middle and low income people.

Psychographic Segmentation

Psychographics is the science of using psychology and demographics to better

understand consumers. Psychographic segmentation: consumers are divided

according to their lifestyle, personality, values. It is considering all the

psychographic variables.

Target Market

The Bangladesh post office has targeted almost all segments of the target market.

They have gone for the full market coverage.

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Positioning

Positioning is the act of designing the company’s offer and image to occupy a

distinctive place in the minds of the target market. Its target market is middle and

lower class people. It is very easy to transfer money through Bangladesh Post

Office. Customer has to collect and fill up a small form from post office. He/she will

deposit money and get a pin no. to his/her cell phone automatically. Receiver will

get the pin no. from the depositor and can collect the money from any post office.

Marketing mix

The marketing mix is a business tool used in marketing products. The marketing

mix is often crucial when determining a product or brand's unique selling point and

is often synonymous with the four Ps: product, price, promotion, and place.

Product/Service

The service is money transfer. Bangladesh post office is very sincere to deliver

customers money to their desired destination. Customers also prefer to transfer or

receive money through it because it is reasonable and safe.

Price

For initial 1,000 taka it charges 27 taka and later for every 1000 taka it charges 10

taka. It is cheaper than other courier services. For example, to send 5000 taka

Bangladesh Post Office(BPO) charges 67 taka, BRAC bank Bikash charges 100 tk

and S A paribahan charges 70 tk.

Place

The service is available to 2,750 post offices throughout the country including all

district Head Post Offices and Upazila Post Offices. Almost all the customers can go

to their nearest post office and send or receive money easily. From next June it is

aiming to deliver the service from more 5000 post office.

Promotion

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Bangladesh Post Office does not use any promotional activities for its money

transfer services. The government does not provide any budget for promotional

activities. They have to depend on existing customer and their positive words of

mouth towards the service to attract new customers. They are getting good and

positive response from their customers.

Recommendations

Remittance and Postal Service as a international money transfer system which is

considered as legal method as well as it has substantial impact on the Balance of

trade payment resulting GDP growth. So this realization should be built at the mind

of citizen of Bangladesh as well NRB and it becomes possible by avoiding all illegal

method for sending and receiving money . In this situation Financial institution

should enchaining knowledge level of consumers by informing them its importance

by adopting any communication mix. As an domestic money transfer system such

as, bkash, Bankers’ Draft or Demand Draft (DD), Mail Transfer (MT), Telegraphic

Transfer, EFTN are also important for having the information regarding circulation

money in the economy. Under this category respective company must have

employees with well understand about service for bring the smoothness in the flow

of service. Since these all is legal way to money transfer so here promotion should

be focused on the creating awareness to follow the legal method. Now-a-days S A

Parabahn is getting the popularity but money transfer through this system has

doest have any official impact on the GDP growth so it should take the legal

permission fro the government.

Reference

1.http://www.prweb.com/releases/money/bangladesh/prweb9100674.htm

2.http://www.dhakainternet.com/2012/01/26/banglalink-initiates-money-transfer-service/

3.http://www.brac.net/node/998#.UDx8ZcEgcqM

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