(World Wide Marketing) Report on Citycell

This report is only base forPrinciples of marketing course MKT-101

Prepared for

Farhan Faruqui
Lecturer Department of Business Administration

Prepared by Tanvir Rahman Md Faisal Kamran Shakil Mahmud Partho Sharothy Deb Nath 2004-02-10-267 2005-01-10-228 2005-02-10-088 2005-02-10-134

Submission Date -12-04-2006 April 010, 2006

Farhan Faruqui Lecturer Dept of Business Administration East West University 43, Mohakhali C/A Sub: An application for submitting a report on Citycell. Dear Sir: In accordance to your advice to our group for preparing a term paper on marketing are have select the product lines and level of segmentation, targeting, positioning, PLC stage and strategy, branding analysis. To serve our purpose, we have followed standard methodology to extract out findings. We have applied sophisticated data analysis techniques to get consistent and sound output. As per the direction of you, we have tried out the best to highlight our findings through applied marketing concept and models. We sincerely hope this report will fulfill the requirement suggested by under the course Marketing-101. We will appreciate if you kindly spend some of your valuable time by calling on us for discussion in connection to the interpretation of this report. Thank you. Sincerely yours, Name Tanvir Rahman Md Faisal Kamran Shakil Mahmud Partho Sharothy Deb Nath ID 2005-02-10-113 2005-02-10-008 Signature

Acknowledgement

Making this report is not so easy if any body did not help us. We are very lucky that we have got so much help from our instructor Farhan Faruqui, he helps us as much as possible. So at first we will thank to him for his encourage co-operation with us. Secondly, we would like to thank marketing department of City cell (Pacific Bangladesh Telecom Limited)for their helping. At last, we are making a wish that the Pacific Bangladesh Telecom Limited will live a long time in Bangladesh and will help our country and people.

Table of content
In this report we include and explain these features which are given below-

Executive Summery Introduction BCG Matrix SWOT Analysis Market Segmentation Four Brand Strategies Product Mix Decision New Product Pricing Strategy Network Conclusion References

1 2 3 5 6 7 8 11 12 13 14

Executive Summery
Pacific Bangladesh Telecom Limited (PBTL) has redefined the telecom business through marketing innovation, Unique BTTB connectivity, continuous technological up gradation & the highest standard of service to there customers proving that they are valuing customers money, and treasure customer relationship. First to launch Mobile phone in the Subcontinent, first to adopt CDMA technology in the sub-continent, first ever private wireless network in Bangladesh, first to connect Cox's Bazaar to rest of the world. They have two services Pre-paid (Aalap 24, Aalap B,Aalap Call Me (with call2cash feature) and Post-paid (CityCell 500, Shabar Phone, Aamar Phone, Citycell Premium). They have another Brand that is Jenhyoo. As they were first cell phone Company and they were monopoly market structure so, they picked up a lot of profit from the market and maximized current profit and were market share leadership. After enter other competitor they are flowing competition base pricing.

INTRODUCTION
Objectives: Broad Objectives: 1. To identify the targeting and positioning strategy Specefic Objectives: 1. To identifying the problem of targeting 2. To identifying the problem of brand analysis Scope: 1. To learn about the system and procedure of Market Targeting, Positioning and Segmentation. 2. To gather knowledge about branding strategy with product mixing. Limitations: The limitations of this research are, it was conducted only on the Citycell. For time constrains it is not possible to go beyond the extent and the sample size was not very large. Though we tried to deliver our best. We went to the people and talked with them with courtesy and they answered us in that way

BCG Matrix
The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. It is based on the observation that a company's business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the name "growth-share". Market growth serves as a proxy for industry attractiveness, and relative market share serves as a proxy for competitive advantage. The growth-share matrix thus maps the business unit positions within these two important determinants of profitability.

Low High

Relative Market Share High Low

Star AALAP 24

Question Marks AAMAR PHONE

Market Growth Rate

High growth & Share Profit potential May need heavy investment to grow.

High growth, low share Build into Stars or phase out Require cash to hold market share.

Cash Cows AALAP CALL ME Low growth, high share Established, successful SBUS Produce cash.

Dogs Citycall 500 Low growth & share Low profit potential.

Stars AALAP 24 large amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate; therefore the cash in each direction approximately nets out. If a star can maintain its large market share, it will become a cash cow when the market growth rate declines. The portfolio of a diversified company always should have stars that will become the next cash cows and ensure future cash generation. Question marks AAMAR PHONE are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is large net cash consumption. A question mark (also known as a "problem child") has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share. So banglalink is now question mark position. Cash cows As leaders in a mature market, AALAP CALL ME exhibit a return on assets that is greater than the market growth rate, and thus generate more cash than they consume. Such business units should be "milked", extracting the profits and investing as little cash as possible. Cash cows provide the cash required to turn question marks into market leaders, to cover the administrative costs of the company, to fund research and development, to serve the corporate debt, and to pay dividends to shareholders. Because the cash cow generates a relatively stable cash flow, its value can be determined with reasonable accuracy by calculating the present value of its cash stream using a discounted cash flow analysis. Dogs Citycall 500 have low market share and a low growth rate and thus neither generate nor consume a large amount of cash. However, dogs are cash traps because of the money tied up in a business that has little potential. Such businesses are candidate

Market share Company Gramen phone Aktel Banglalink Citycall

Customer 3,000,000 1,000,000 400,000 600,000

Market share 60% 19% 10% 11%

SWOT Analysis
Strengths Opportunities

Superior voice quality and clarity by eliminating background noise. Low power consumption, hence higher talk time, enhanced battery life. Minimum health risks compared to other wireless technologies. Increased security and privacy as none other then the called person can listen to your conversation. Higher data transfer rates.

A lot of Business people use city cell Their social work can be influence to people like-(help no. of DMP, RAB etc.) In a present time city cell doing an agreement with SingTel. CDMA has a capability to transmit a high speed data so they can use this facility properly.

Weaknesses

Threats

Net work is not very good Less promotional activities in many districts.

Better offerings from competitors People speak bad word of mouth about their network

City cell network is very less active. There is no cover in our whole Country.

Tele talk is a big threat as a new competitor.

New competitor is very big threat. Hand sat is not fashionable and changeable comparer than other company.

Poor internet marketing Less effective supply channel. No back up employee for management department.

Market Segmentation

Demographic Segmentation - (age, gender, income, ethnic background, and family life cycle.) In this segmentation they usually follow income base segmentation as like journalist, Businessman etc. they offer various package for this income level people. Geographic Segmentation-World Region or Country, City or Metro Size and Density or Climate) Generally they do not follow this segmentation. Segmenting by Psychographics-(Social class, Lifestyle, Personality) Their post-paid package City cell Premium is like a social class offer. Behavioral Segmentation-(Occasion, Benefits, User status, Usage rate, Loyalty status) Generally Pahela Baishakh package is occasion segmentation.

Major Branding Decisions

Brand Sponsor- Actually in a brand decision they are private Brand; they earn their product from another company in Singapor.

Four Brand Strategies

Product Category Existing New

Existing Brand Name

Line Extension Post-paid, Pre-paid & RIM

Brand Extension No extension Brand.

New

Multibrands No Brand in this strategy.

New Brands Jenhyoo is their new Brand.

Product Mix Decisions

Width Length Pre-paid Aalap 24, Aalap B,Aalap Call Me (with call2cash feature Post-paid CityCell 500, Shabar Phone, Aamar Phone, Citycell Premium

Depth for Pre-paidAalap 24

Aalap 24
Alap 24

Call Type
Outgoing Incoming To Any Mobile 2 To BTTB From Any Mobile From BTTB

Call Charge1
Tk. 2.50 Tk. 2.50 Free Tk. 1.00

Notes:
For every 30 second pulse from the first 30 second BTTB charges applicable * For One2One calls to up to 3 CityCell numbers, talk for as low as Tk. 1.25/pulse * VAT applicable
2 1

Aalap B
Aalap B

Call Type

Call Charge
Peak (8AM-8PM) Off Peak (8PM-11PM) Super Off Peak (11PM-8AM) Tk. 4.00/min Tk. 2.00/min Free Free

Outgoing Incoming

To Any Mobile From Any Mobile

Tk. 5.00/min Free

Notes:
*20second/pulse/after/firstminute * For One2One calls to 1 * VAT applicable

CityCell

number,

talk

for

50%

of

the

above

tariffs

Aalap Call Me
Aalap Call Me

Call Type
Outgoing Incoming To Any Mobile To BTTB
2

Call Charge1
Tk. 2.50 Tk. 2.50 Tk. 0.25 credit per minute Free Tk. 1.00

From CityCell Mobile From Any Mobile From BTTB

Notes:
1 2

Forevery/30second/pulse/from/the/first30second BTTB/chargesa/pplicable * For One2One calls to up to 3 CityCell numbers, talk for as low as Tk. 1.25/pulse *VATapplicable * CityCell to CityCell SMS @ Tk. 1.50

Depth for Post-paidCityCell 500

CityCell 500
CityCell 500 Monthly Line Rent: Tk. 500

Call Type

Call Charge
Peak (8AM-8PM) Off Peak (8PM-11PM) Tk. 3.00/min Tk. 3.00/min Free Tk. 2.00/min after free first minute Super Off Peak (11PM8AM) Tk. 1.50/min Tk. 1.50/min Free Tk. 1.00/min after free first minute

Outgoing

To Any Mobile 2 To BTTB From Any Mobile From BTTB

1

Incoming

Tk. 4.00/min Tk. 4.00/min Free Tk. 3.00/min after free first minute

Notes:
Interzon/Roaming/charges/applicable BTTB/charges/applicable *15/second/pulse/after/first/minute *For One2One calls to 3 CityCell *VAT applicable
2 1

numbers,

talk

for

50%

of

the

above

tariffs

Shabar Phone
Shabar Phone Monthly Line Rent: Tk. 250

Call Type

Call Charge
Peak (8AM-8PM) Off Peak (8PM-11PM) Super Off Peak (11PM8AM) Tk. 1.50/min Tk. 1.50/min Free Tk 1.00/min after free first minute

Outgoing

To Any Mobile 2 To BTTB From Any Mobile From BTTB

1

Incoming

Tk. 3.00/min Tk. 3.00/min Free Tk. 2.00/min Tk. 3.00/min after after free first free first minute minute

Tk. 4.00/min N/A Free

Notes:
Interzonal//Roaming/charges/applicable BTTB/charges/applicable *15/second/pulse/after/first/minute *For One2One calls to 3 CityCell *VAT applicable
2 1

numbers,

talk

for

50%

of

the

above

tariffs

Aamar Phone
Aamar Phone Monthly Line Rent: Tk. 200

Call Type
Outgoing Incoming To Any Mobile From Any Mobile

Call Charge
Peak (8AM-11PM) Tk. 3.00/min Free Off Peak (11PM-8AM) Tk. 1.50/min Free

Notes:
*15 second pulse after first minute *For One2One calls to 3 CityCell numbers, talk for 50% of the above tariffs *VAT applicable

CityCell Premium
CityCell Premium Monthly Line Rent: Tk. 350

Call Type
Peak (8AM - 8PM) 3.00 4.00 4.00 Free 2.00

Call Charge
Off Peak (8PM - 11AM) 2.00 3.00 3.00 Free 2.00 Super Off Peak (11PM - 8AM) 1.00 1.50 1.50 Free 1.00

Outgoing

Incoming

To CityCell To Other Mobile / PSTN 1 To BTTB From Any Mobile / PSTN From BTTB

Notes:
BTTB charges applicable * 1-second outgoing pulse from the very first second. * 1-second incoming pulse after first free minute. * For One2One calls to 5 CityCell numbers, talk for 50% of the above tariffs * VAT applicable
1

New Product Pricing Strategies

Market Skimming- When they were in a monopoly market structure, they usually skim maximum revenues from target market, as a result is few but more profitable sales.

Product Mix- Pricing Strategies

Captive-Product- City cell pricing product as like a captive-product as they sell Hand sat for a maximum time but Pre-paid card and bill is a continues process accompanied with this product.

Cost-Based, Value-Based Pricing & Competition-Based Pricing

Cost-Based & Value-Based pricing - Generally they do not follow these pricing. Competition-Based Pricing- In a Competition-Based Pricing they set their price goingrate; Company Sets Prices Based on What Competitors Are Charging. Some time they follow Seal-Bid pricing.

Network Coverage Area

City cells present network coverage are-

Conclusion

After analysis we see that the network of City cell is not so good comparer than other cell phone company. They are first cell phone Company in Bangladesh but their network problem causes to decrease their sell. They should improve their network. In a present time they are doing an agreement with Sing tel; after this agreement we think that their network will be improved. Another problem is CDMA; they have only base on CDMA hand sat its data transmission rate is high but hand sat is not fashionable and its not closeable for all; because most of the people want to use their closeable sat. They have RIM base sat but whom want to use this; they have only can use some sat from city cells. RIM base has not various types of sat. So it can be decrease city cells popularity. If they want to be more popular, they can provide GSM also. Another factor is call rate; in Bangladesh the call rate is very high so they can decrease their call rate. If they decrease call rate than they can able to increase their customer.

References
We have got a lot of help from these resources so we are very grateful for these-

Principles of Marketing(10th edition) Philip Kotler & Gary Armstrong City cell (Pacific Bangladesh Telecom Limited) www.citycell.com

PRODUCT/ MARKET EXPANSION GRID

Market penetration- they are tried to increase their new dealer store, improve advertising.
Market Development-they are tried to increase their network district to thana to village. Product Development-various types of package offer for modifying the product,

and RIM offer is also included product development. Diversification- Jenhyoo is a new product for new market.