Strategic Recommendations for Aktel*

in Bangladesh Telecom Market

Brand-building Exercise for AKtel

*AKtel is now ‘Robi’, the 2nd largest Telco in Bangladesh

1. The Positive Outlook2. The Mobile Eye Poppers3. The Most Relevant Category Trends4. A Competitive Update5. The India Paradigm6. The Prospects for the Bangladesh Market7. The Challenges & the Strategic Imperative8. The 3 Critical Blocks9. The Opportunity & the Strategic Challenge10.The Communications Purpose & the Brand Spirit11.The Portfolio Strategy12. Creatives – Sample Concept for Signature

• Route 1 – Signatures of Celebrity Lifestyle• Route 2 – Making Possibilities Possible

8. Comprehensive 360 degree IMC roadmap for Signature9. Protishabda Agency Strengths10. Protishabda Billing Principles11. Protishabda Media Highlights

We Will Walk You Through

The PositiveOutlook

Economy Growing by a whopping 6.7%

Share of Agriculture in GDP down to 26 % from 80 %

A rapid growth in Urbanization has also led to a sudden spurt of the middle class household

A Progressive Literacy rate of 60%

Millions of Cars on the road today and growing further

A Nation Emerging as economic powerhouse

of tomorrow

“House” owning households have increased by almost 50% in the past five years

One of the top 11 Emerging economiesas per Goldman Sachs outlook report

Moving onto the Telecom Space

A change that is affecting everyone across the country…across profiles…geographies…

A change that is not just driven by the city-bred urbanites anymore…

Who says you can’t have everything? One of the fastest growing categories

Never Had the Consumer Had it so good

Let’s Look at some Eye PoppersWith relevance to the Mobile Space

15 Million Phones to 32 million phones in 3 years flatA tele-density of 22 today from a Tele-density of 0.26

In 1997

The fact that almost 60% of the population in the country

is under 40 makes a large chunk of users and prospective users in the youth band

The country with one of the lowest call rates… An average of Tk. 1 per minute from about Tk. 7 per minute 5 years back

A certainly talkative Bangladeshi….Almost 350 Minutes of usage per month, which is one of the highest in the world

There is still a very strong value-orientation…But, with an altered perspective…Due to the plummeting

call rates, a new “inclination” has come to the scene…to try out things that appeal to me…

“ a willingness to stretch if it catches my fancy…”

The consumer is truly the king…

Lets look at few of the defining trends in this scenario

The ever-bulging Pyramid1. A never ending stream of new customers entering the category

2. Constant migration upwards. A steady stream of consumers moving from the bottom end to mid end and mid end to the top end…

Trend 1

New Users Coming in to the category

New Users Coming in to the category

Evolved High-end UserHolisticValue

Seeker Pure-PlayVoiceUser

Shifting of the Battle ArenaEveryone is trying to get a lions share of the uninitiated 78…

Acquisition has become greater than retention

Trend 2

The FalloutSudden Course Correction and change of focus by all players…

single minded objective now…Building preference amongst the prospective users at the mass end of the market

Urban Markets almost saturatedEvolved cellular markets have penetration levels ranging from 30% to 50% …Out of the

new acquisitions the split between rural and urban is almost 50 : 50

Trend 3

Sacrifice on the altar of AcquisitionsIn the focus to be competitive, the Industry ARPU average has drastically fallen to levels of US $ 4 per month from about US $6 even a year back…Which is one of the

lowest in the world…The world-wide average ARPU is US $ 21.30

Trend 4

Monthly Bill Headed SouthwardsOn an average there has been a 10 % to 15 % reduction in the monthly

payout…giving the consumer room to aspire for more…The desire to sample newer products and services is more than ever before

Trend 5

Product & Imagery ParitySame set of benefits. Same set of Problems.Nothing significantly different happening at the brand level

Trend 6

With this Backdrop, let’s evaluate the Competitive Landscape

The Key Players 3 Salient Players

Grameen Phone clearly the National brand of Choice Strong Equity Invokes the Bangladeshi Pride Long time heavyweight leader in terms of numbers (subscriptions,

ARPU, Coverage, Growth, etc.) Innovative Products Only one to have an youth brand in the portfolio

A strong challenger brand - Banglalink The Only recent entrant who has been able to communicate a clear imagery in

the market and dent the market upside down.

AKtel the No. 2 brand in the country A strong product portfolio…However the brand is yet to forge a clear identity in

the consumers’ mind

Communication Banglalink has made regular attempts with the play of

tiger / agent of change / aggressive price cut / heavyweight spender and so on.

Grameen Phone also has maintained attempts with the leadership image to retain and grow further.

Noticeable efforts were there to appropriate and leverage specific product innovations by AKtel.

For AKtel not enough has been done at the master brand level.

The New Players The pool has widened and the options for the cost

conscious user has multiplied

The market is going to get more competitive once the new players pan out across the nation and get their infrastructure in place

The Market is on the verge of taking the next flight…A situation where the neighboring Indian telecom market was there a few years back

The Indian Paradigm1. Parity Market2. No Differentiation3. Plummeting Tariffs4. Falling ARPU’S

Suddenly…A Lifeline emerged for the operators…Increasing demand for VAS meant

potential to generate revenue and shore up the plummeting ARPU’s…

The Indian Paradigm

VAS –Finally dropped anchor1. Over 100million sms’s everyday, 1 million paid ring-tone downloads everyday.2. Contributes to 7-8% of telecom industry revenue, likely to contribute up-to 20 % in the next 3 years.3. Total market today around 2850 crores, likely to reach 4850 crores in the next 5 years.

Around 22% of VAS revenues come from caller ring back tones, 18% from ringtones, 7% each

from wall papers and games, 15% from voice-based info services and 31% from text-based information services.

The Indian Paradigm

Brands began to drive differentiation through Value Added Technology Led Innovations in the VAS & GPRS Space

With this Backdrop, Let’s do some Crystal Ball Gazing on the Bangladesh Market

Voice will be VanillaVoice will play no role in building disposition or preference…In the next few years, with growing importance of VAS, revenue contribution from pure voice services will diminish…

Prospect 1

The FalloutAs we go along, the 3 C’s of Clarity, Connectivity and Coverage, that used to

be critical attributes earlier, will become hygeine

Prospect 2

A

The more evolved userA large section of the audience would evolve to be a discerning user and therefore demand more & more value additionsVAS already growing at 10 % per annumTechnology Integration would be critical

Technology will continue to unravel new possibilitiesExploding demand would warrant upgraded capabilities from both ends “Handset” & “Network”

Prospect 3

Handsets will drive ImageryWill continue to symbolize Success, Youthfulness and Progress across profiles

The desire to be seen with what is “in”Replacement Cycles will alter

Prospect 4

Ambassadors of tomorrow

Prospect 5

The Young & the Youthful will dominate the sceneThe young and vibrant between 17 and 21To them a mobile is not just a device…it is the means to express their individuality, a medium to share and exchange feelings, thoughts, emotions, trends, fads, jokes…the next best medium after the internetThey would seek to express much more through a mobile device

Prospect 6

Contrasting Impact on RevenueWhile the mass market would drive the ARPU’s down, the top end of the market would provide the opportunity for shoring up revenues through high-end VAS

With this backdrop, let’s look at few of theChallenges that confronts the brand

1 The Balance between Numbers & Revenue

2 Building differentiation through innovation

3 Connectivity in Smaller towns and the heartland

4 Building Loyalty at the top-end and connecting with the youth

5 Building Preference and preventing churn at the mass end

6 Prepare grounds for high end data services

7 Keep strengthening the basic 3 C’s…

The Strategic Imperative Gear up for an evolving market with

regards to Communication Products Network

Refresh imagery and bring to life the numerous possibilities on the AKTEL Network

Clearly earmark how each of the product portfolios would address the different segments

Most Importantly clearly articulate and define the Master Brand Proposition

Identifying the most salient Blocks that willDetermine the strategy

1. Consumer 2. Market 3. Brand

Consumers are experiencing the benefits of a Gung-Ho Macro environmentThe revolution in the Telecom space has been accompanied with

Enhancement of life quality across the boardThe Consumer has begun to recognize the role of a mobile in living a life

that is meaningful, socially fulfilling & progressive…Every Bangladeshi is rediscovering the emotions associated with the Pride of being a part ofan emerging Nation…Also a band of customers are emerging with clearly defined aspirations

1 Consumer

A Parity Environment. All players moving in the same direction. Attempting toDrive differentiation through emotional messaging

without any focus toLeverage product innovations… No investment to build identity & look

Focus more on acquisition rather than revenuegeneration

2 Market

AKTEL has had a history of focused communication on the innovative Products and Services…However the accent has never been on building an overarching master brand Proposition…On the contrary it is an opportunity that one could build a new

Proposition from scratch without any baggage

3 Brand

The emotionally charged Optimist who has begun to experience the high of quality life

and seamless Communication

&

The Uni-dimensional Pure Voice Connectivity based brand propositions of all players

The Opportunity

Change the Playing field by clearly defining a holistic role of the brand in adding value to every facet

of his life…Through the different Product Portfolios…

The Challenge

The AKTEL Communication Purpose

DreamInspire every Bangladeshi to unlock their full potential through the benefits of a seamlessly connected

world

SpiritEmpowering Innovation

Beliefs Everyone has the right to expressing, receiving & transmitting

information in real time In the age of Instant Global Connectivity no one should be a laggard

due to lack of a communication medium Integrating communications technology Communication should open up a new world of possibilities Embracing and harnessing the diversity of Bangladesh Make every Bangladeshi an integral part of the global village Delivering value through the benefits of cutting edge technology Relentless Pursuit of “step ahead” innovation The power of simplicity GIC (Greatest Imaginable

Challenge)To be the No 1 Telecom To be one of the most admired brandsTo bring in regional and global synergy in terms of technological superiority and brand equity.

Character World Class Accessible Innovator

Transformational Optimistic

Caring Simple

Restless Passionate

FocusSimplify technology to enrich lives

Our LegacyAKTEL is 2nd largest cellular operator providing high quality

service and innovative products. It is the only player launching many value-added products in the market and

focusing more on quality than quantity

Empowering InnovationStrategically it would be imperative to manifest this spirit

across all interfaces

The Portfolio Strategy1. Define & Build Premium imagery and create Connect

through overarching master brand communication

2. Build Product range leadership through the Post Paid Franchise

3. Make inroads into the mass market through Pre-paid products

4. Build a Franchise of the Future…Connect with the youth with a youth brand

AKTEL PORTFOLIO STRATEGY Articulate the Empowering essence of innovation at the brand

Level…Make it the Pivotal force around which all inputs could revolveBrand

Bring to Life the manifestations of this spirit at the Product LevelPosition Post Paid as the Flagship Product in the range…

A complete communication portfolio that opens up infinite possibilities for consumers

ProductPost Paid

Penetrate market with aggressive acquisition strategies…Manifest innovation through innovative Tariffing Mass

Pre-Paid

Create a separate youth product with products and services that conformto their aspirations and lifestyles…

A product designed to help them bond and vibe as close knit groupsin a format and look that is Trendy, Hip and talks their language

YouthSeparate Brand

The PositioningOnly AKTEL will allow Millions of Bangladeshis the benefits of being seamlessly connected anytime, anywhere by providing innovative communication solutions across various formats.

The Key PillarsMaster Brand

ProductPost Paid

MassPre-Paid

ConnectivityClarity

Coverage

IntegratedVAS Internet Service

Youth

Zero RentalFriends & Family

IntegratedVAS

BroadbandInternet

AKTEL DataCard

Leverage TM Credentials

Qualitative Brand understanding Points of contacts Media planning tools Media creativity Shared expertise within

network

Quantitative Buying efficiency

and optimization Strategy Cost Position

Overall negotiation to increase value

The ROI Perspective

Higher ROI

The ROI Perspective Protishabda media aims to ensure that clients receive a

greater return on per Taka invested in media than any of their competitors

Five key principles Invest – we invest, not spend our client’s money Outcomes – we are interested in outcomes, not output Connect – we believe in creating powerful connections with

consumers Productivity – we aim to increase marketing productivity Evaluate – we are committed to measurement and evaluation

Thus we would like to be known as the ROI agency accountable for our clients investment in media.

Thank you

Kazi M. HossainAccount ManagerFastrack Graphics

Thorncliffe Park Drive, East York, Toronto

Brand Consultant, Mozaic Creative Yonge St, Thornhill, ON L3T, Toronto, Canada

Ex. COO of Protishabda (Publicis and Saatchi & Saatchi Affiliate)

26 Kemal Ataturk Avenue, Dhaka, Bangladesh

Mobile: (647) 836 4335Email: rasel1210@gmail.com

ca.linkedin.com/in/mkazihossainyoutube.com/user/kmhrasel