Group Profile

BackBenchers

Group Leader ID
Makame Mahmud 167

Members ID
Mohammad Rashed Bin Enam 01
Fazle Rabbi Khadem 93
Taufique Haque Ashique 113
Md. Moshiur Rahman 171
S.M Mehedi Hasan 177

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Acknowledgement

Thanks to Allah. Writing this report appeared to be a great experience to us. It added a
lot to our practical knowledge while we were working on this report. This report is one
of our memorable experiences because we were asked to formulate a full marketing plan
for a renowned company. We owe profound gratitude to Professor Zakir Hossain for
giving us the opportunity to develop our creative abilities. We are immensely obliged to
all group members, without them it would be an easy task and who guided us in making
this report in time. Whatever we have learnt from them and this marketing plan report
has put indelible impression on our mind. It is our conviction that this learning
experience will always be a source of help in our practical life and professional career.

Thanks to all.

Executive Summary
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The telecom industry has grown and evolved at an incredible pace for the last 20 years,
dramatically changing the way people communicate and transforming everyday life
along the way. Mobile phone penetration is approaching 50% globally, with some
mature markets surpassing 100% penetration. Mobile broadband subscribership has
topped 200 million worldwide. And the rollout of 3G networks in emerging markets
means there is the potential for mobile broadband subscribers to outnumber wire line
broadband subscribers within the next decade. This is an exciting—and demanding—
time to be a device manufacturer, a service provider or an application developer.
Innovation is vibrant and opportunities abound, but competition is ferocious and leaves
no room for poor decisions. In this report we tried to be innovative in deciding
marketing tactics and strategies.

Grameen Phone (GP) is going to launch 3 revised versions of packages to meet the
overall customer demand and hold market share in mature market. Before renovating
our packages we surveyed general people, students, businessmen and SME (Short and
Medium Enterprise) traders to suggest what’s best for them.

In our new packages we introduced packages for indigenous people of hill traces titled
“ADHIBASI”. We are also planning to introduce smart packages for students and
businessmen. This will offer handset plus student/ business packages at a much lower
price. This is mainly to attract the attention of our young and student subscribers.

In this report we discussed all relevant topics for covering a formal report. This report
include brief introduction of Grameen Phone and its strategies to gain the market share
and all its depth analysis which we think should be consider necessary to analysis of
such a big company. By our evaluation we have found that Grameen Phone is lacking
some activities which are mostly its communication to its customers. At the end of this
report we provide implementation of strategies for Grameen Phone.

Introduction
40
Grameenphone, widely known as GP, is the leading telecommunications service
provider in Bangladesh. With more than 20 million subscribers (as of June 2008),
Grameenphone is the largest cellular operator in the country. It is a joint venture
enterprise between Telenor and Grameen Telecom Corporation, a non-profit sister
concern of the internationally acclaimed microfinance organization and community
development bank Grameen Bank. Telenor, the largest telecommunications company
in Norway, owns 55.8% shares of Grameenphone, Grameen Telecom owns 34.2% and
the remaining 10% owns by public.

Grameenphone was the first company to introduce GSM technology in Bangladesh). It

also established the first 24-hour Call Center to support its subscribers. With the
slogan Stay Close, stated goal of Grameenphone is to provide affordable telephony to
the entire population of Bangladesh.

MARKETING MIX
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Marketing Mix is the set of controllable tactical marketing tools the firm blends to
produce the response it wants in the target market. The marketing mix consists of
everything the firm can do to influence the demand for its product. The many
possibilities can be collected into four groups of variables known as the “four Ps”:
product, price, place, promotion. Figure shows the particular marketing tools under
each p.

Product Price
Variety List price
Quality Discount
Design Allowance
Features Payment period
Brand Name Credit terms
Packaging
Target
Services
Customers

Intended
Positioning

Promotion Place

Advertising Channels
Sales proportion Coverage
Public relation Assortments
Personal selling Locations
Inventory
Transportation

Marketing Mix

Product Product means the goods and services combination the company effect
that offers to the target market for attention, acquisition, use, or
consumption that might satisfy a want or need.

Price Price is the amount of money charged for a product or service, or the
sum of the values that consumers exchange for the benefits of having or
using the product or service.
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Place Place includes company activities that make the product available to
target consumers.

Promotion Promotion means activities that communicate the merits of the product
and persuade target customer to buy it.

Grameenphone Product Mix

A product is anything that can be offered to a market and that is potentially valued by a
target market for the benefit or satisfactions it provides, including objects, services,
organization, places, people and ideas.

As in a service providing business Grameenphone provides different types of service in

its market as its products. In telecommunication business coverage and quality is more
important than the number of product or service offered. With its best coverage and
good quality Grameenphone has become the number one mobile operator in
Bangladesh.
Grameenphone has categorized its products in two types. These are
1. Standardized and
2. Customized Products.

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Standardized Product

Standardized Product also has been divided into two types: Pre-Paid and Post-Paid.

 Pre-Paid
The brand name of prepaid products is as follows: GP Youth, GP Aadhibasi and
General.

• General (Prepaid Standard)

General Standard prepaid allows consumers to make and receive ISD and NWD call
in all telecom operators.

• GP Youth and GP Aadhibasi (Mobile to Mobile)

GP Youth and GP Aadhibasi Mobile to Mobile allows its consumers to make and receive
call from any mobile.

 Postpaid

• Xplore

Xplore is the brand name of post paid product of Grameenphone. It is categorized in

two types: Xplore Package 1 and Xplore Package 2. Both of these Post-paid products
has BTTB (Local, NWD, ISD and Economy ISD) connectivity, Flexible Credit Policy,
Wide collection of value added service (SMS, EDGE, Welcome Tune, Voice Mail,
Voice SMS) and International Roaming facility.
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Customized Product
“Business Solution” is provided as a customized service to different medium and large
organization and Professionals. This customization allows interesting call and sms
charge among the member of the organization, fax and internet service within the
organization branch. The customized service of one organization is never told to other or
disclosed. Separate Strategic Business Unit (SBU) is responsible for the success of each
of this product. As the way, this organization has proved that SBU is important for the
success of a product in its market.

Different types of value added services are provided with these products as product
feature.

Value Added Services

With Grameenphone’s VAS, consumer can use mobile phone for many other purposes
than making voice calls. With Grameenphone’s VAS, consumer can use mobile phone
to:

• Send and receive text messages, picture messages, voice messages

• Download ring tones, logos, wallpapers
• Obtain news updates, cricket score updates
• Browse the Internet and also send and receive e-mails
• Transfer data and send fax
• Participate in competitions and vote for opinions
• Health line services.

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Branding

The name or names that identify a company’s products can be very important in
positioning them. The brand name distinguishes a product from competitor’s products.
A strong brand identity creates major competitive advantages. A brand that is
recognized by buyers encourages repeat purchases. Grameenphone is successful in its
products branding. All most every prepaid mobile phone user is aware about its “Smile”
prepaid package and business consumers are aware about “Business Solution”. This
Branding images comes from good quality of Grameenphone’s products as well as its
high promotion activities. Corporate branding places primary emphasis on building
brand identity using the corporate name. Grameenphone has become a corporate name
in telecommunication business in Bangladesh. Corporate branding offers the advantage
of using one advertising and sales promotion program to support all of the firm’s
products. And it is often found in Grameenphone advertisements. Corporate branding
has become a branding strategy because the product offering is relatively narrow in
telecommunication business.

Products Life Cycle

A company’s positioning and differentiation strategy must change as the product,

market environment and competitor’s strategy change over time.
Product life cycle (PLC) is the course of a product’s sales and profits over its lifetime. It
involves five distinct stages: product development, introduction, growth, maturity and
decline. All products have a limited life and profits rise and fall at different stages of the
product life cycle.
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All of Grameenphone’s products are in maturity stage. Grameenphone hopes that this
will continue for other few years. Different features and value added service will be
included over time to time with the products to maintain the maturity of the product.

Grameenphone’s Strategic Analysis of Existing Products

Because we are going to evaluate and rebrand our existing products we must consider
the following steps.

Grameenphone regularly evaluates the performance of its product. This evaluation of

the performance of the product portfolio provides its management with diagnostic
information to guide its strategies for new products, product modification, and product
elimination. But the strategic analysis of existing products requires tracking the
performance of the products in the portfolio, as shown below:

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For tracking product performance Grameenphone’s management first establish the
criteria and levels of performance for gauging product performance. These include both
financial and non financial factors. Because of the various demand and cost
interrelationships among products, an information system is established to measure
how well a particular product is doing. The purpose of this tracking system is to
maintain a product review process that will help to spot problem products or products
features. Grameenphone’s management uses the diagnosis to help select a strategy for
eliminating the problem. Action includes adding new products, cost reduction, product
improvement, marketing strategy alteration or product elimination.

• Product life cycle analysis

The length of product life cycle is shorter in telecommunication business. So in a few

years Grameenphone’s products moved from its introduction in to the growth stage
and it is now in maturity stage. This first movement through the product life cycle
also creates the need to alter the cycle by introducing new products or products
feature.

• Product portfolio analysis

Grameenphone’s strategic analysis of the products portfolio determines if each

product is measuring up to management’s minimum performance criteria, and
assesses the strength and weaknesses of the product relative to other products in the
portfolio.

Portfolio grids highlight differences among products. After identifying the relative
attractiveness and business strength of the products in the portfolio, a more
comprehensive analysis of specific performance factors may be appropriate,
including:

• Profit contribution.
• Barriers to entry.
• Sales fluctuations.
• Extent of capacity utilization
• Responsiveness of sales to prices, promotional activities, service levels,
and other influences.
• The nature of technology (maturity, volatility, and complexity).
• Alternative production and process opportunities.
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Several of these factors are included in the grid analysis when composite grid
dimensions are used.

Situation Analysis

Market Summary

Grameenphone posse’s 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 are their specific needs and the way to communicate with the
customers need and demand.

Market Needs

Grameenphone is providing a wide range of services for its valued customers. The
company seeks following benefits that are important for its customers:

Quality Service

Grameenphone is providing quality service to the consumers. The customers don’t like
the network problem and slow networking system. Grameenphone 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. Grameenphone is committed to its customer about the quality service.
40
Call Centers

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 centers are
too limited to meet the huge demand. Now at this Grameenphone is expanding its
customer care centers and upgrading its quality. Grameenphone is committed to meet
the customer demand and problem as soon as possible.

Service at Low Price

Grameenphone is committed to provide quality service at a lowest price. Over the years
GP provided services at a low price and that’s why GP is the #1 telecom service provider
in Bangladesh.

BCG Growth Matrix of Telecom Industry

Boston Consulting Group Matrix (BCG) developed this model to determine the
strengths of a company’s SBU’s as well as to define the strength of the competitors.
Here we tried to show the BCG Matrix for Overall Telecom Industry in
Bangladesh.

High Market Share Low Market Share

High Growth STARS Question Marks
Grameenphone Warid (Airtel)

Low Growth Cash Cows Dogs:

Banglalink, Robi Teletalk
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Here we can see that, GP is now the market leader and also has all the
requirements to be a “STAR”. There is a question whether Warid Telecom will be a
STAR or Cash Cow after being acquired by Bharti Airtel recently. Because of the
reputation of Airtel, GP will surely face a fierce competition from Warid Telecom.
On the other extreme, it’s TeleTalk. This company created a lot of hope among
consumers but it failed to satisfy consumer’s expectations. There is an availability
of cash cows in the telecom industry with big names and expectations- Banglalink
and recently rebranded Robi (Previously known as Aktel).

Hierarchy details of marketing and sales department

Consumer Profile Analysis

Market Segmentation:

For getting the maximum market share and respect of the product in the minds of the
consumer, as per our observation and market survey we have concluded that
Grameenphone’s market segmentation is based on two points.

1. Geographic Segmentation
2. Demographic Segmentation

Geographic Segmentation:

The company has divided its geographic segmentation in several regions. First they have
the segmentation of a whole country and for Dhaka city, they divided its areas into
different regions. So that it could be easy for the company to work efficiently on its
supply chain management.

Demographic Segmentation:

Grameenphone’s packages aren’t a supreme quality product that only the high class
uses. The packages are for all. There is no age, sex, income and any other kind of
limitation on use of the product. The product is for all. Anyone can use the product as
per need.
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Targeting Strategy:

Everyone can use any package that GP is offering. There are some variations that can be
made throw our observation but not from the company.

Grameenphone comes in four different packages. These four are targeting different
types of people and lifestyles.

Packages

Youth Package:

This package is targeted mainly for young

generation who wants to be in touch with
group members and friends, surf the web
and wants a favorable price plan for them.
In order to satisfy the growing market we
choose to serve efficiently. This package
offers highest number of fnf’s, lowest call
rate and 20 MB free GPRS usage.

Aadhibasi Package

Grameenphone is trying to enter the niche market

of aadhibasi’s. Aadhibasi’s are deprived of using
cellular services due to security reasons. But now
GP gets the permission to enter into the market
with Government cellular TeleTalk. This package
offers affordable price plan, fnf, and different call
rates for different times and low cost SMS service.

Business Solutions

This package is for Businessmen. This package

offers all the state of art technologies to serve the
daily needs of busy persons. This package also
offers corporate packages, WIS technology, voice
mail, handset plus package etc.
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General

This package is for all. Offers affordable and

competitive price plans compared to other
operators.

Consumer Profiling Analysis

GP’s packages are for all with some restrictions because GP has to abide by
the rules imposed by GoB.

Package Age Related Sex Income Educatio

Group to people n
of/ Use
Youth 18-22 Students Not Not Not
years Applicable Applicabl Applicable
e
Aadhibasi 18- Max All Not Not Not
Aadhibasi Applicable Applicabl Applicable
e
Business 35- Max Businessm Not Applicabl Applicable
Solutions en and Applicable e
organizatio
ns
General 18- Max All Not Not Not
Applicable Applicabl Applicable
e
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PEST ANALYSIS
Pest analysis has four main components from which we analyze the company or product
under these circumstances. This analysis includes these factors
• Political Factor
• Economical Factor
• Sociocultural Factor
• Technological Factor

Political Factors

1. Regulatory Initiatives

The actions like Level Playing Field Regulation, out of court settlement case and all
related activities in this that affect the organization’s performance which is very
important for any organization to remain in on-going competition.

2. Governmental Decisions

Government decisions like Telecom Regulation, Issuance of Mobile Operator license and
decrease and increase in Tax rates also affect the Overall performance.

1= Strongly Significant 2= Significant 3= Neutral

4= Not very significant 5= Not Applicable

Political Factors
Regulatory 1 2 3 4 5
Initiatives
Governmental 1 2 3 4 5
Decisions
Laws and 1 2 3 4 5
Regulations
Note: Bold number will be considered as selected.
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Economical Factor

Short term and long term state of trading should be considered in Bangladesh. Inflation
rate was controlled by the Bangladesh Bank (BB), this authority have a strict eye on our
economical issues. But besides this we have high increasing rate of unemployment as
well as increasing level of poverty.

These days Bangladesh has double figure interest rate. The price of Dollar increased and
reached up to the BDT 70. Keeping all these situations into the consideration the
Grameenphone decreases its calls rates. Now Grameenphone gives the most attractive
packages for its customers. So economic factors include following the following things.

1= Strongly Significant 2= Significant 3= Neutral

4= Not very significant 5= Not Applicable

Economical Factors
Inflation and 1 2 3 4 5
Interest Rate
Unemployment 1 2 3 4 5
Rate
Increasing 1 2 3 4 5
Poverty Rate
Note: Bold number will be considered as selected

Sociocultural Factors

During the formation of marketing strategies Grameenphone look a lot of consumer

behaviors and social culture factors which influence the buying behavior of the GP’s
product. In this context GP look various consumer behaviors and buying pattern of
culture. So in the view of successful marketing strategy Sociocultural factors influence
very much. So it involves the way how consumer think and feel and how they interpret
GP.
1= Strongly Significant 2= Significant 3= Neutral
4= Not very significant 5= Not Applicable
Socio-cultural factors
Consumer 3 4 5
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Buying 1 2
behavior
Work life 2 3 4 5
Quality 1
Workforce 2 3 4 5
Diversity 1
Note: Bold number will be considered as selected

Technological Factors

In Bangladesh companies have technology by which they can compete in the industry
and now there is usage of heavy investment for building and upgrading the
infrastructure of telecom organizations.

1= Strongly Significant 2= Significant 3= Neutral

4= Not very significant 5= Not Applicable

Technological Factors
Technological 1 2 3 4 5
Advancement
Cost involve 1 2 3 4 5
in Technology
Implication of 1 2 3 4 5
Technology
Note: Bold number will be considered as selected
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SWOT Analysis

SWOT analysis tries to find out the strengths, weaknesses, opportunities and threats of a
particular company. Grameenphone’s SWOT Analysis is as follows:

STRENGTHS WEAKNESS

1. Superior quality
2. Better customer relationship
3. Extra features and services
4. Committed and efficient staff
5. Strong financial base
6. Products innovations
ongoing
7. Good reputation among
customers
8. Good packages according to
the target market
9. Management is rational and
understanding the situation
10. Low price as compared to
quality provided
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 OPPORTUNITIES THREATS
1. A developing market
2. Mergers, joint ventures or 1. Emerging companies in market
strategic alliances 2. Unstable political conditions
3. Could develop new products 3. New companies in market
4. Extension to overseas 4. High public expectations
5. Decline of major competitors 5. Low prices of competing brands
6. Technologically better
environment
7. New launches
8. More customers after
prelaunch

SERVICES

Basic Services:

Caller Line Identification (CLI): This service enables you to identify callers and
answer calls with discretion.

Call Hold and Call Waiting: Handle two calls at a time with your Warid phone. You
can be on one call while network will alert you about another incoming call. You can put
the first call on hold while you answer the second call.

Call Divert: Whether you are unable to take a call, driving outside the national
coverage area, traveling abroad or busy, you can divert call to another number.
F & F numbers: Enjoy special tariffs for special numbers (F&F) of your choice 24
hours a day on both pre-paid and post-paid connections.

Business Hour rate for Business Solutions: Experience cost effective tariffs
during your busiest time of the day. Make your calls at lower rates from 9am till 6 pm.

Closed User Group (CUG) rate for BS: The Closed User Groups (CUG) feature
gives you lower call rates when you make calls within your defined company
connections. Certain conditions apply for this feature.
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International Roaming: You can get a connection designed with extended roaming
service; Grameenphone has agreements with more than 115 countries worldwide so you
are always available at your own number while traveling abroad. Take the privilege of
availing the service with zero security deposit as a Business Solutions subscriber.

Messaging Services

Short Messaging Services (SMS): With SMS, you can be as discreet or as creative as you
like. Either way, sending a message is quick, reliable, and confidential and if you want to be
Great Fun!

Voice SMS: Save time and personalize your message through a voice SMS. This service
provides you the flexibility to record it up to 120 seconds of audio – so even if
your desired number is unreachable, your message will reach out live!

MMS (multimedia messaging): The MMS service provides you the take pictures,
customize it with animation, music, video clips and send it across the globe
within seconds.

Cell e-mail:
Send emails without a computer. With cell e-mail, you have the facilities to e-mail any
GP number through an SMS and email any PC across the globe.

SMS plus:
Stay updated through SMS plus – the service allows you to update and receive
information on daily sales (or any user defined updates) through SMS reporting.

SMS banking:
Enjoy hassle-free account updates from renowned banks like Standard Chartered Bank,
BRAC Bank, Bank Asia, etc.

SMS information service:

When you can’t find the time to check up on the latest news, share market information,
currency exchange status or directory information, our SMS information service can
update you.

Mobile profiling:
Enhance your corporate profile by installing your company logo and corporate tune as
ring-tone on all employee phones.
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 Internet and Data Services
Get Internet access on your mobile phone – your extended gets mobility and access
everywhere you go.

High Speed Data Service: Grameenphone’s high speed mobile coverage, powered by
EDGE, lets you enjoy a series of services like e-mailing, downloading, and browsing. If
you move out EDGE coverage the phone automatically switches to GPRS, ensuring you
connection without any interruption. Moreover, your EDGE-enable phone functions as a
wireless data modem when you connect it to any laptop.

Mobile data transfer for BS: You can easily transfer data to share among your
colleagues, access servers when moving in a remote area, and even connect to the
Internet from your own PC by using our mobile network.

Mobile Fax for BS: It’s just like having your own traveling office! All you need is a
computer notebook, your business solutions mobile phone, a cellular data card and a
connector. You are ready to send faxes as well as retrieve it from any available fax
machine.

Mobile Internet: With this service you can access a number of mobile Internet sites
such as yahoo mail, hotmail, google, msn, for news services, travel information, sports
updates and much more.

Mobile E-mail: Our mobile e-mail is designed such that you are never far from your
business. Access your office e-mail, corporate address book, and view business
appointments. Mobile email lets you use your mobile as you would your computer.

Wireless Intranet Service (WIS):

Connect all your computers and EDGE-enable mobile devices anywhere in the country
with your intranet. Enjoy all the benefits of securely sharing data within your company
LAN and save communication costs like never before. Call the Key Account Manger
assigned to your company from Business Solutions to avail the service.

GP Internet

GP internet gives you to browse the Internet on your mobile phone and laptop anywhere
you are. So, whenever you are on the move and want to look for information on the
Internet, simply setup the Internet connection from your GPRS/ WAP enabled handset.

GP Menu

Thanks to state of the art SIM technology, your GP SIM comes with a special GP Menu.
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This menu offers a bundle of services. Using this menu you can send email from your
handset, download ring tones. Set GPRS/WAP settings, get latest weather forecasts etc.

Missed Call Alert

Missing an important business call when your mobile runs out of charge? Need to turn
your phone off when attending an important meeting? Your phone may need to be
switched off for many reasons.

Stock Information
The latest updates of the Dhaka and Chittagong Stock Exchange are now in your palm.
You can set your own stock portfolio in the Stock information service and get regular
update of the portfolio anytime you want. You can also receive alert when the stock
prices reaches your pre-set desired level.

Business SMS
Send SMS to your clients, employees and business partners all at a time. Business SMS
is a web based SMS broadcasting application through which you can send, manage and
schedule SMS to single and/or multiple recipients, among Grameenphone subscribers.
It allows instant and convenient communication - you can create your own message
recipient group that accommodates up to 10,000 contacts; receive message delivery
reports and also use SMS scheduler to preset any SMS to be delivered at a future time.

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Competitor Analysis
1. Banglalink
2. Airtel
3. Robi
4. Teletalk

Banglalink

Banglalink is the second largest cellular service provider in Bangladesh after

Grameenphone. As of November, 2009, Banglalink has a subscriber base of 12.99
million. It is a wholly owned subsidiary of Orascom Telecom.

Banglalink had 1.03 million connections until December, 2005. The number of
Banglalink users increased by 257 percent and stood at 3.64 million at the end of 2006,
making it the fastest growing operator in the world of that year. In August, 2006,
Banglalink became the first company to provide free incoming calls from BTTB for both
postpaid and prepaid connections. On August 20, 2008, Banglalink got past the
landmark of 10 million subscriber base. Banglalink offers:

1. High speed data service.

2. WAP data service.
3. Multimedia messaging service.
4. Offer real VPN system for corporate clients.
5. Offers TNT incoming and outgoing.
6. Offers one of the cheapest prepaid plans in the country by tariff.
7. First introduced Call Block system in Bangladesh
8. First introduced query service for farmers “Jiggasha”
9. Offers credit if balance runs out.
10. Offers internet package with internet modem.
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 11. Offers instant load.

Robi (Previously Known as Aktel)

Axiata (Bangladesh) Limited (formerly known as TM International (BD) Limited) is a

joint venture between Telekom Malaysia Sdn. Bhd. (70%) and NTT DoCoMo (30%).

Robi formerly known as Aktel is the third largest mobile phone operator in
Bangladesh in terms of revenue and subscribers (8.59 million as of February 2009). In
early 2008 Robi slipped from the second position to the third after facing fierce
competition from Banglalink.

Robi (formerly known as Aktel) boasts of the widest international roaming service in the
market, connecting 315 operators across 170 countries. It is the first operator in the
country to introduce GPRS. AKTEL uses GSM 900/1800 MHz standard and operates on
allocated 12.8MHz frequency spectrum.

Robi offers following services:

1. Offers fundamental prepaid packages.

2. Offer GPRS at low price.
3. Offer sending SMS in Bengali to subscribers.
4. Moderate tariff rate.
5. High opportunity to be a competitive after signing partnership with NTT
DoCoMo and rebranding.
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Warid Telecom

Warid Telecom International Ltd. is a GSM-based cellular operator in Bangladesh.

Warid was the sixth mobile phone carrier to enter the Bangladesh market, and launched
commercial operations on May 10, 2007. Warid Telecom International LLC, an Abu
Dhabi based consortium, sold a majority 70% stake in the company to India's Bharti
Airtel Limited for US$300 million. Bharti Airtel Limited will take management control
of the company and its board, and will relaunch the company's services under its own
Airtel brand. The Bangladesh Telecommunication Regulatory Commission approved
the deal on Jan 4, 2010.

On July 19, 2007 Warid Telecom announced in major dailies of having achieved one
million subscribers in the first of 70 days of operation. As of December, 2009 Warid has
secured 2.99 million subscribers and is ranked fourth among the six operators.

Warid offers:

1. Offers NGN or Next-Generation Technology- a future-proof architectural system

which ensures optimum utilization of frequency and enhances speed and quality
of both voice and data services.
2. Competitive in case of FnF rate.
3. Offers bonuses starts from spending TK 5 at a time. Offers monthly bonuses also.
4. Expanded its network to five more districts raising total number of districts
under Warid coverage to 56. Now 64 districts under Warid network coverage
with 1750 BTS.
5. Change of ownership may turn this company into a high profile competitor for
Grameenphone.
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Citycell (Pacific Bangladesh Telecom Limited) is the first mobile communications
company of Bangladesh. It is the only CDMA network operator in the country. As of 1
March, 2008, Citycell's total mobile subscriber base is 1.56 million, up 137 per cent or
680,000 from two years ago, giving it the best growth rate of the company till date.
Citycell is currently owned by SingTel with 45% stake and the rest 55% owned by Pacific
Group and Far East Telecom.

By the end of 2007 Citycell had refurbished its old brand identity and introduced a new
logo and corporate identity; the new logo is very reminiscent of the old logo. However
the slogan has remained unchanged "because we care". As of July, 2008 Citycell has 1.67
million subscribers.

Citycell offers:

1. CDMA Services
2. High speed internet service named “Zoom” internet with “Zoom” modem.
3. Competitive price plan.
4. Offers CDMA handsets at low price.
5. Currently has the cheapest phone+connection tariff at 1399 taka.
6. Instant load

Teletalk Bangladesh Ltd

TeleTalk (Teletalk Bangladesh Ltd) is a GSM based state-owned mobile phone

company in Bangladesh. TeleTalk started operating on 29 December, 2004. It is a Public
Limited Company of Bangladesh Government, the state-owned telephone operator.
TeleTalk provide GPRS internet connectivity. Teletalk is the first operator in the country
that gave BTTB (now BTCL) incoming facility to its subscribers.

The mission statement of Tele Talk is "Desher Taka Deshey Rakhun" ("Keep your Money
in your Country")

TeleTalk is the 6th largest mobile phone operator in Bangladesh with 0.98 million
subscribers as of October, 2008.

Teletalk offers:
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 1. Instant Load.
2. Internet package (WAP) via modem.

Analyzing the Pricing Situation of GP:

• Price Elasticity:

It is the percentage change in the quantity demanded when price changes, divided by
the percentage change in the price. GP has gained high price elasticity in the market.

• Non-price factors:

The Gold holders pay a high amount of money in buying to get the high facility.

• Cost Analysis:

• Product cost provides essential information for pricing decisions. To analyze cost,
GP uses the following steps:
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 • Competitor Analysis:

Aktel is the major competitor of GP as it is consistent in its rates and facilities and gain a
most part of the market shares although Banglalink has more promotional activities and
call charge, they have not been able to hold the market yet. GP fixes its competitor on
the basis of market share. They fix price in keeping pace with the competitors’ price and
their probable responses to an alternative price strategies.

Distribution Channels of Grameenphone

There are three types of distribution channel used by GP which are following:

• Distributor’s Channel
• Corporate Channel
• Direct Channel
• Franchise selling

Distributor’s Channel

Distribution channels are more than that simple collections of firms tied together by
various flows. They are complex behavioral systems in which people and companies
interact to accomplish individual, company and channel goals.
Distributors are also working for selling GP’s product. Distributor sells GP products to
the retail stores. GP wants to cover 30000 to 40000 shops and retail stores in
Bangladesh. Because time is money GP want that their customers get product at the
door step. These distributors are working on behalf of GP. They provide GP products at
different retail stores and shops. GP feels it is important to provide products with
utmost to convenience to the customers. GP is on mature stage, they are using intensive
distribution network.

For the channel as a whole to perform well, each channels role must be specified.
Grameenphone uses both traditional and vertical marketing distribution channels.
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Conventional Distribution Channel Vertical Marketing System

Producer
Retailer
Wholesaler

Consumer

Corporate Channel
In corporate selling GP is on top. GP introduced innovative services to satisfy business
customers. GP usually conducts post-paid packages for different company’s employee.
GP also provides vehicle tracking systems for corporate customers.

Franchise Selling
GP is providing their brands to ultimate consumers through franchises. It has a strong
network of franchises all over the Bangladesh. Most of the franchises are situated at
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Dhaka and Chittagong. In franchises GP brands are sold and commission is given to
franchisee. The franchisee works according to the requirements of GP. In order to
provide best services to their customer’s GP monitor the working of franchisees time to
time. Franchisees sell GP brands directly to the ultimate consumer or they can appoint
their own dealers in order to save the product. So for a GP customer it is easy to get
connection at any time from everywhere.

Grameenphone Promotional Mix

Grameenphone uses promotional activities that communicate the merits of the product
and persuade target customers to buy it. Grameenphone can succeed to acquire more
than 10 million customers as of December 2006 not only providing good service but also
using high frequency promotional activities. Grameenphone uses most of the
promotional tools to give message for its customers on the new product & existing
product and product features. Grameenphone must do more than make good product-
they have to inform customers about product benefits and carefully position products in
consumers’ mind. To do this Grameenphone promotes the promotion tools are:

Grameenphone Promotional tools

Advertising Sales Promotion Public Relation Personal Selling

Newspaper
Inside Sales
Television Publications Force
Radio Events
Price packs
Magazines News
Newslette Cash Refund Offers
Prizes Sponsorships
r
Patronage Award Public service
Internet
activities
Premium
Price Offs Identity Media
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Grameenphone Advertising process:

Any paid form of nonperson presentation and promotion of ideas, goods or services
by an identified sponsor. Grameenphone advertising can introduce the company and
the products. If the product embodies new features, advertising can explain them.
Advertising can remind customers of how to use the products and reassures them
about their purchase.

• Grameenphone Advertising Objectives:

Grameenphone uses advertising as a promotional tool to make a communication

task to be accomplished with a specific target audience during a specific period of
time.

Grameenphone Advertising objectives

Informative advertising
Telling the market about a new product
Suggesting new uses for a product
Informing the market of a price change
Explain how the product works
Describing available services
Building a company image
Persuasive Advertising
Building brand preference
Encouraging switching to Grameenphone
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Changing customer’s perception of product attributes
Persuading customer to purchase now
Persuading customer to receive a sales call
Reminder Advertising
Reminding consumer that the product may be needed in the near future
Reminding consumer where to buy it

• Grameenphone Advertising tools:

Grameenphone uses different types of media to acquire different types of objectives.

To select media depend on the target audience, product characteristics, message
characteristics and cost. The advertising tools that grameenphone uses as a media to
communicate with the existing and potential customers are:

o Newspapers

Newspaper covers all sorts of information about grameenphone’s product. It mainly

covers the informative and reminder advertising.

Target Message characteristics Duration Cost

audience
Literate Flexibility, high believability Short life Lower
people.
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 o Television

Television is an effective media for good mass-market coverage. Television telecasts

messages about new product and it is mostly used for persuasive advertisement.

Target Message characteristics Duration Cost

audience
All types of High attention, high reach, high Long life High
people but clutter
teenagers
influences
more

o Radio

Within a lower cost, Grameenphone broadcast their massage through radio. It is a

better way for persuasive advertisement.

Target Message characteristics Duration Cost

audience
All types of Audio presentation only but usage Relatively Lower
people but mass and cover high geographical short life
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teenagers area.
influences
more.

o Magazines

An effective media that Grameenphone uses as a promotional tool to achieve the

customer’s awareness about Grameenphone and its product. It is an effective media
for informative and persuasive advertisement.

Target Message characteristics Duration Cost

audience
Middle and High-quality reproduction, long life Medium
Upper-income credibility and prestige.
audience.

o Newsletters

Grameenphone publishes newsletter regularly to inform existing customer as well as

potential customer about company’s recent activities and offer.

Target Message characteristics Duration Cost

audience
Loyal Very high selectivity, full control. Short life Relatively
consumers low cost
and interest
persons

o Internet

Internet performs effective promotional tools grameenphone advertising. It gathers

all sort of information about grameenphone.
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 Target Message characteristics Duration Cost
audience
Internet High selectivity, interactive Long time Relatively
browser possibilities. still update low cost

Grameenphone Sales promotions Process:

Grameenphone uses sales promotions that consist of a diverse collection of incentive

tools, mostly short term, designed to simulate quicker or greater purchase of
particular products or service by consumers or the trade.

• Grameenphone Sales Promotion Objectives:

Sales promotion tools vary on their specific objectives. Grameenphone uses sales
promotion to acquire broader promotion objectives:

Grameenphone Sales promotion objectives

For consumer
Encouraging purchase of large sized units.
Building trail among nonusers
Attracting switchers away competitors’ brand
For retailers
Persuading retailers to carry new items
Encouraging stocking of related items
Offsetting competitive promotions
Building brand loyalty
Gaining entry into new retailers outlets
For the sales force
Including encouraging support of a new product
Encouraging more prospecting
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Marketing Strategies of GP

GP has divided its segmentation and strategy division into five segments on the basis of
their characteristics. Markets consist of buyers and buyers differ in one or more ways.
They may differ in their wants, resources, locations, buying attitudes and buying
practices. The core concept behind companies using marketing segmentation concept is
to divide large homogeneous markets into smaller segments that can be reached
effectively and efficiently with products and services that satisfy needs, wants, desires
and trends of certain segment.

Characteristics that govern segmentation and strategy development in Telecom industry

Specifically mobile services according to a certain segment are:

➢ Age
➢ Educational background
➢ Gender
➢ Income
➢ National, regional or other geographical areas of origin
➢ Social class
➢ Religion
➢ Culture
➢ Behaviors
➢ Population
➢ Tele density in area to be segmented

So according to these above mentioned factors GP divide its marketing strategy into
three segments which are:

➢ Prepaid Segment
1. Youth
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 2. Aadhibasi
3. General

➢ Business & Corporate Segment

➢ Post-paid Segment

Prepaid Segment

New Prepaid Price Plans

Grameenphone brings you a new prepaid connection only at BDT 250 with a bonus talk time of
Tk 200. You will get a bonus talk time of Tk 50 instantly after recharging. This connection, gives
you the freedom to choose amongst the three exciting offers – Youth, General and Aadhibasi.

Special packages for new prepaid connections

Youth Package:

Grameenphone prepaid connection comes with this pre-activated package where you will be
able to talk to any operator number at a low, flat rate of Tk 0.65. You can also send SMS at Tk .
5/SMS to any operator (GP/ others) number.

Time GP-GP GP-Other Operators

Voice call 24 Hours Tk. 0.50/min Tk. 0.65/min
SMS Tk. 0.5/SMS Tk. 0.50/SMS
7 FnF 24 hours Tk. 0.35/min
Free GPRS Use/monthly 20 MB

Aadhibasi Package: This package is only available for Aadhibasi people around Bangladesh.
Aadhibasi offers as follows:

Time GP-GP GP-Other Operators

Voice call Morning Time: (8 am-12pm) Tk. 0.90/min Tk. 1.25/min
Day Time: (12pm-4pm) Tk. 0.49/min Tk. 1.49/min
Evening Time: (4pm-12 am) Tk. 1.25/min Tk. 1.49/min
Night time (12am-8 am) Tk. 0.49/min Tk. 0.99/min
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3 FnF (Voice call) 24 Hours Tk. 0.49/min Not Applicable
SMS Tk. 1.00/SMS Tk. 1.00/SMS
SMS (FnF) Tk. 0.50/SMS Not Applicable
This package gives you the privilege of calling 3 FnF numbers at Tk 0.49 and sending SMS at Tk
0.5 ( GP-GP, GP-other operator at Tk 1/SMS)

General Package: This package with the highest number of F&Fs allows you to talk to your
near and dear ones at the lowest rate. This package gives you the privilege of calling 7 FnF
numbers at Tk 0.49/min. You can calls to all other numbers (Other than the seven FnFs) are
BDT 0.99 per minute. SMS rates are BDT 0.50 per SMS to FnF numbers and BDT 1 to other GP-
GP and other operator numbers.

Time GP-GP GP-Other Operators

7 FnF (Voice call) 24 Hours Tk. 0.49/min Not Applicable
Voice Call 24 Hours Tk. 0.99/min Tk. 0.99/min
SMS Tk. 1.00/SMS Tk. 1.00/SMS
SMS (7 FnF) Tk. 0.50/SMS Not Applicable

Post-paid Package & Business Solution

Tariff and line rent

xplore Postpaid has come up with a very attractive and competitive tariff.

BTCL
GP-GP Other Mobile F&F (local/NWD) SMS Charge

4pm-12pm 4 F&F Incoming: Free F&F: Tk.0.50

Tk.0.49/min
24 Hours
Outgoing: Tk. GP and other local
1.30/min operators: Tk.1
Tk.1.30/min
Tk.1.30/mi
n International: Tk.2.0
0

12pm-4pm
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Tk.
0.49/min

Line Rent: Tk.50/month (This fee too will be waived if the subscribers' monthly
airtime usage exceeds BDT 450)

BTCL Incoming is absolutely free for Xplore :

• 1 sec pulse from 1st minute onwards for all numbers except F&F

• 60 sec pulse from 1st minute onwards for F&F

• NWD calls: BTCL's Peak (8am - 10pm) & Off-peak (10pm - 8am) rate will be
applicable for BTCL charge

• All figures are excluding VAT. 15% VAT will be applicable.

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