Professional Documents
Culture Documents
Assignment On Grameenphone
Assignment On Grameenphone
As we were assigned to prepare a term paper on Grameen Phone, we had prepared this report
based on the due topic. In this term paper we at first gave an overview of the corporate background
and corporate history of Grameen Phone. They have mainly four types of service offerings those are
Smile prepaid for the mass customers, Explore postpaid for the high income earners, Djuice for the
youth segment, Business solution for the businessmen and executives, Public Phone for the urban
low income segment, Village Phone for the Rural lower income segment and so on. Their product
designing and market segmentation was appropriate enough to meet the customers needs and wants.
Their all products perfectly match with their target customers income level, life style, profession. In
case of pricing they follow value based pricing. Their pricing strategy is also appropriate and
reasonable for their target markets income level. They also chose the right promotional tools to reach
the customers more quickly and efficient way. For example they set bit higher price for the Business
solution uses and explore users, as they are the higher income groups. They set bit lower prices for
the village phone and public phone, as they are within the lower income segments. They also chose
the right promotional tools to reach the customers more quickly and efficient way. Their distributing
systems were appropriate enough to reach their products to the target customers more quicker way.
They also provide some value added services. Those are sms based alert services , voice based
services, infotainment services, innovative services (like Cell Bazaar), message service, Customer
care related services and so on. We can also consider GP as a successful follower of the right
business trend. As in this globalized world customers are right now becoming more demanding, the
GP introduce all of their core services and value added services in such a way that they can fulfill the
highest demand of any customer groups. Overly we can consider the GP as successful telecom
service provider.
CHAPTER-1
(INTRODUCTION)
As our course Instructor, Ms. Sarahat Salma Chowdhury, Lecturer, Department of Business
Administration, East West University assigned this term paper to us as a part of the curriculum of the
course BUS101 offered us during the BBA program, we are submitting our due appraisal. This
project report is prepared on the topic Grameen Phone.
Provide ideas about their products and services that Grameenphone offers
Went through the text, related journals, and also the companys respective websites.
Secondary Sources:
1.5 Limitations:
This term paper was made under various stressful situations and thus to make it more easily we had
to make some adjustments. Still then there were some limitations. Those limitations are given below:
We had the lacking of understanding many terms and conditions of many of the materials and
other related stuffs in the primary and secondary information.
Lack of Information about the various products and services of the companies.
Lack of maturity as we have made this term paper for the first time.
CHAPTER-2
(COMPANY BACKGROUND )
2.1 About Grameen Phone:
Grameenphone Ltd., the largest telecommunications service provider in Bangladesh, received its
operating license in November 1996 and started its service from March 26, 1997, the Independence
Day of Bangladesh. Now, after 12 years of successful operations, Grameenphone is the largest
mobile phone service provider in Bangladesh, with more than 23 million subscribers as of December
2009. The Company was successfully listed in November 2009 which was the largest IPO in the
history of the Bangladesh capital market. Grameenphone provides services to rural and urban
customers across Bangladesh, where mobile telephony is acknowledged as a significant driver of
socio-economic development, both for individuals and the nation.
Grameen Phone is actually a telecommunication service provider, right now successfully operating
in Bangladesh. Besides the communication they also provide other telecom related and value added
services. Grameenphone is now the leading telecommunications service provider in the country with
more than 20 million subscribers as of June 2008. Grameen Phone started their journey at the
starting of the year 1997. At November 28,1996 Grameen Phone offered a cellular license in
Bangladesh by the Ministry of Posts and Telecommunications. They launched its service on the
3
Independence Day of Bangladesh at March 26, 1997. At November 5, 2006 after almost 10 years of
operation, Grameenphone has over 10 million subscribers. Presently, there are about 30 million
telephone users in the country, of which, a little over one million are fixed-phone users and the rest
mobile phone subscribers.
2.2 Share Holders and Corporate Governance:
The shareholding structure comprises of mainly two sponsor Shareholders namely Telenor Mobile
Communications AS (55.80%) and Grameen Telecom (34.20%). The rest 10.00% shareholding
includes General public & other Institutions.
Number of Ordinary Shares Percentag
SL Name of Shareholders
held
1
2
3
4
5
6
7
8
9
753,407,724
461,766,409
11,037,221
6,598,800
6,495,300
3,684,900
2,161,800
2,096,700
1,693,900
55.80%
34.20%
0.82%
0.49%
0.48%
0.27%
0.16%
0.15%
0.12%
10
11
12
13
14
15
16
17
18
19
20
Investors A/C
Rupali Bank Ltd.
Popular Life Insurance Co. Ltd.
Prime Bank Ltd. Investors A/C
Trust Bank 1st Mutual Fund
Union Capital Ltd. Investors A/C
ICB Unit Fund
The City Bank Ltd.
The Trust Bank Ltd.
Trust Bank Ltd. NRB A/C
Grameen One : Scheme Two
Peoples Leasing and Financial Services Ltd.
Total
1,283,800
1,234,400
1,158,100
1,064,200
1,059,000
975,800
975,600
894,300
891,800
872,800
799,700
1,260,152,254
0.10%
0.09%
0.09%
0.08%
0.08%
0.07%
0.07%
0.06%
0.06%
0.06%
0.06%
93.31%
Chapter-3
(Human Side Of Business)
3.1 Management:
The Management Team is the executive committee of Grameenphone managing the affairs of the
Company. The management Team consists of the CEO and other key leaders across the Company.
The CEO is the leader of the team. Management Team endeavors to achieve the strategic goals &
mission of the Company set by the Board of Directors. The Management Team meets on a weekly
basis to monitor the business performance of the Company.
Board of Directors
Audit Committee
Treasury Committee
Human Resources
Committee
Health, Safety,
Security and
Environment
Committee
The subordinates, 1st line officers, engineers, technicians etc work under these committees.
3.4 Motivation And Leadership Style: Grameenphone phone is self motivated as a organization
and they follow the democratic leadership style. Thats why they are one of the most superior
telecom companies in the market.
5
3.5 Training Program: GP does not offer a fixed variety of training programs. They offer training
programs in each and every different sectors of the company to train their employees so that they can
achieve their goals and targets. Training programs of Grameenphone has gained huge success to
accomplish their targeted goals in the recent years.
3.6: Number Of Employees: There is more than 5,500 people currently working in Grameenphone
as employees in different sectors like administration, finance, public relations, customer care,
marketing, management, Advertising, technical team etc.
Chapter-4
(Production and Marketing)
4.1 The Four PS:
The four Ps are actually the strategic weapons for the companies to develop and differentiate their
products, offer those to customers and satisfy their perceived value by providing superior value to
them. From the marketing point of view we termed those as Marketing Mix. If a company wants to
target a specific market and to provide a superior value it wouldnt be possible for them without
simultaneously formulating a general marketing strategy for that targeted market or that particular
segment. Since customer value is delivered by the marketing strategy, the firm must develop its
general marketing strategy as it evaluates potential target markets. Marketing Strategy is basically
the answer to the question: How superior customer value can be provided to the target market? The
answer to this question requires the formulation of a consistent marketing mix. The Marketing Mix
is actually the set of marketing tools the firm uses to pursue its marketing objectives in the target
market. The investigators and market experts classified those tools into four broad groups that they
called the four Ps of marketing: Product, Price, Place, Promotion. This marketing mixes or tools
are vividly described below.
4.2 Product:
A product is anything a customer acquires or might acquire to meet the perceived need. That means
Product is something that has as ability to provide a perceived value to the customers and customers
buy products or services to satisfy a specific need or to solve a specific problem. Customers are
generally buying need satisfaction, not physical product attributes only. For example if a person
purchase a soft drink, he actually purchased the satisfaction of his specific need that is thirst.
Simillerly when a person is purchasing a package of telecommunication service, he is actually
purchasing a solution to solve his communication problem. In the same way when a firm producing
cosmetics for consumers, in the factory they may manufacturing cosmetics, but in the store they are
actually selling hope.
4.3 Price:
Price is the amount of money one must pay to obtain the right to use the product or service. That
means it is the monetary value (to some extant psychological value) of the product the customers
must have to forgone to get the benefit of the product. One can buy the whole product or the
ownership of the product or a limited usage of the product. For example when a person is purchasing
a pen, he is purchasing a whole tangible product. When he purchasing an apartment, he is actually
purchasing the ownership of the product. When he rent or lease any product such as video, he is
actually purchasing a limited usage of the product. So based on the attributes, benefits and usage
marketers set the prices of their products.
Manufacturer
Manufacturer
Manufacturer
Manufacturer
7
Consumer
Consumer
Retailer
Wholesaler
Consumer
Retailer
Wholesaler
Consumer
Retailer
Jobber
Among these several types of ways depicted above the firm has to chose the best way that will
enable them to serve their product to the customers within a very short time and at a least cost. For
example for door to door selling, mail order, telemarketing, TV selling, Internet selling the firm
dont need to maintain wholesaler or retailer they can provide this type of services directly from the
manufacturer to customer. This is also called Direct Marketing.
GP Smile Prepaid:
GP Explore Postpaid:
facilities etc
Djuice:
GP Public Phone:
GP Business Solutions:
GP Village Phone:
SMILE SMS: SMILE offers the opportunity to SMS at affordable rates. One can also enjoy
F&F SMS at the lowest rate. Your F&F number is your SMS F&F.
Economy ISD rates: SMILE subscribers can easily call friends or families staying abroad
just by dialing 012 followed by desired numbers and talk at economy rates (012 + desired
number). Dial 012 followed by the country code, area code and your desired number for
enjoying low international call rate.
Caller ID: It is a basic feature of SMILE that allows one to view the number that is trying to
reach him or her.
Call Waiting: It enables one to receive a second call while he is already talking to another
person. When his call waiting feature is activated (on his mobile), he will be usually notified
by a short beep sound. he can then either reject the second call or put the first caller on hold,
talk to the second caller and then return to the first call. Call waiting can be activated by
calling *43#, deactivated by calling #43# while its status can be checked by calling*#43#.
Call Conference: It is a unique & beneficial service that enables one to interact with
multiple people at the same time. It allows him to make up to 5 calls at once and connect all
the calls so that everyone can talk to each other. This feature is handset dependent.
Call Divert/Call Forwarding: One can divert/forward his incoming calls to any other
number when his mobile is off, busy, cannot answer phone or out of coverage area.
Call Barring: Depending upon ones mobile handset, he can restrict any unauthorized use of
his mobile phone (incoming and outgoing).
package is basically to satisfy the communication and business related needs of the high income
earners and to some extant middle class mass. With the tag line Xplore the joy of doing more they
organized this package to let the customers discover the pleasure of doing much more. It is packed
with a treasure of new features and facilities that keeps customer in touch with their loved ones and
gives them access to unlimited information and entertainment. Xplore Postpaid is available with
Mobile to Mobile with BTCL connectivity & ISD. BTCL incoming is absolutely free in xplore. All
new xplore subscribers will now get EDGE P3 (12am-8am) and MCA (Missed Call Alert)
subscription free for the fist 3 months, along with 100 SMS free of charge over the same period.
Customers can get started with xplore Anywhere Anytime! Xplore Postpaid has come up with a very
attractive and competitive tariff. For example the xplore subscribers can enjoy a tariff of tk 1.30/min
to any mobile with four FnF at tk 0.50.
customers. Thank you benefits for the Xplore subscribers are of the following types:
As part of thankyou, customers will receive a thankyou discount, depending upon their usage
and length of the relationship with Grameenphone, every month. thankyou discount is
calculated on their outgoing voice calls only (excluding BTTB charges, roaming charges,
monthly line rent, VAT & other taxes)-see the below matrix
The discount that they receive in any month will be displayed in the Post-paid bill of the next
month. They can get up to Tk.1000 worth of monthly discount.
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At the thank you Partner outlets, any eligible Xplore subscriber(activated for more than 180 days can
enjoy discounts on purchase.
Special Discounts at various exclusive local and International thank you crown partners
Thank you partner discounts at more than 300 thank you partner locations
Priority at 121
Apart from that the subscribers can enjoy FnF services with convenience recharging process by
scratch card, flexi load and balance transfer. Along with all the benefits, all new and existing
customers of GP xplore postpaid will continue to enjoy quality network and best customer service
through edge package and GSM technology. Some such types of services are described below.
Caller ID: It allows GP subscribers to view the caller's ID before answering the call.
Call Waiting: It enables subscribers to receive a second call while they are online with
another call. When their call waiting feature is activated (on their handset), they will be
usually notified by a short beep sound. They can then either rejects the second call or put the
first caller on hold, talks to the second caller and then return to the first call.
Call Conference: It allows them to make up to 5 calls (max) at a time and connect all the
calls to make a conference call. This feature is handset dependent.
Call Divert: It allows them to divert the incoming calls to any mobile number or BTTB
number.
Call Barring: It allows them to restrict any unauthorized use of their mobile phone by
imposing restrictions on certain types of calls (incoming and outgoing). This feature is also
handset dependent.
4.6.3 Djuice:
12
Djuice is a particular market niche of Grameenphone. It is also a simple prepaid package mainly
designed for the youth market segment. This package is basically organized to satisfy the
communication and entertainment need of the young generation. Grameenphone successfully
launched djuice in April 2005. This was the first time in Bangladesh that a Brand totally dedicated to
the youth, was launched by a mobile service provider. With their separate taglines Duniar Shukh ,
Welcome to Djuice dunia they actually invited the youth group in a different world of
entertainment where they can enjoy the latest and coolest music, movies, mobile games, sports, and
so much more. From this package they can also download the hottest & most happening wallpapers,
logos, screensavers, themes, ringtones, welcome tunes, video tones, true tones of their favorite music
albums, groups & celebrities, movies and stars, sports actions, events and icons, and so on. They can
get those services either from the djuice website www.djuice.com.bd, wap.djuice.com.bd or by
sms short code 3030. Today the young generation are more likely to linked with the world best
technologies and amusements. To facilitate them one step ahead GP introduced this djuice.
Djuice offer its subscriber lots items with a convenient start up offer with a convenient call rate.
For example its start up price is BDT490 with two FnF and sms at 0.50 and allows djuice to djuice
at the rate of BDT 0.75/min from 7am to 12 pm. As like thank you of Smile package djuice offer a
separate package titled as Xtra Khatir. As like thank you bonus, depending on their usage ,djuice
users can get some extra discount at the end of a certain period.
ensure shipment and so on. To facilitate all types of business activities GP designed this business
solution package to meet up the need of their corporate clients. They mainly provide the business
organizations the following services.
F & F numbers: Enjoy special tariffs for 3 special numbers (F&F) of customers choice
24 hours a day on both pre-paid and post-paid connections.
Business Hour rate: Experience cost effective tariffs during clients busiest time of the
day. Make their calls at lower rates from 9am till 6 pm.
Closed User Group (CUG) rate: The Closed User Groups (CUG) feature gives clients
lower call rates when they make calls within their defined company connections. Certain
conditions apply for this feature.
International Roaming: Clients can get a connection designed with extended roaming
service; Grameenphone has agreements with more than 115 countries worldwide so they
are always available at their own number while traveling abroad. Take the privilege of
availing the service with zero security deposit as a Business Solutions subscriber.
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Call divert: This service allows them to automatically divert incoming calls to another
mobile number whenever they are unable to receive a call, too busy, or simply
unreachable.
business
people. Their various messaging services allow clients, ways to communicate smarter, faster,
more efficiently and more cost-effectively on the going concerns. They provide such services
like SMS, Voice SMS, Voice Mail, MMS, Cell e-mail, SMS Plus, SMS Banking, SMS
Information Service, Mobile profiling etc. To their business class clients.
Internet and data service: Grameenphone also provide internet and data exchanging
services to its corporate clients. They can get Internet access on their mobile phone and also
get mobility and access to the net everywhere they go. The major internet services of GP are
as follows.
High Speed Data Service: Grameenphones high speed mobile coverage, powered by
EDGE, lets the clients enjoy a series of services like e-mailing, downloading, and browsing.
If they move out EDGE coverage the phone automatically switches to GPRS, ensuring
connection without any interruption. Moreover, clients EDGE-enable phone functions as a
wireless data modem when they connect it to any laptop.
Mobile data transfer: Clients can easily transfer data to share among their colleagues,
access servers when moving in a remote area, and even connect to the Internet from their
own PC by using GPs mobile network.
Mobile Fax: Its just like having clients own traveling office! All they need is a
computer notebook, their business solutions mobile phone, a cellular data card and a
connector. they are ready to send faxes as well as retrieve it from any available fax
machine.
Mobile Internet: With this service clients 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.
15
Mobile E-mail: GPs mobile e-mail is designed such that clients are never far from their
business. Access their office e-mail, corporate address book, and view business
appointments. Mobile email lets them use their mobile as they would their computer.
The roaming services provided by GP can be described from two perspective. A person going
outside Bangladesh or another person who is coming to Bangladesh can get two different types
of services from GP.
IR Usage, Bill & Payment Information through SMS from home & abroad
Access to 24/7 GP Health line Medical Consultation service number from abroad
(+8801700100789) **
Can get EDGE/GPRS Roaming Services (Internet, Email, MMS, WAP etc.)
17
This is a special facilitating Package provided combinely under Grameen Banks Micro Credit
Program and Grameenphone. This package is designed to facilitate the calling businesses in the rural
areas of Bangladesh. It is also an offer to the small investors to earn generate income from phone
through subsidized tariff .Personal voice communication beyond hearing
distance is simply not possible today from 90 per cent of the 68,000 villages of Bangladesh. The
Village Phone (VP) program established by Grameen Telecom provides an opportunity for universal
access: according to Grameen Telecom, a person may not own a telephone but he/she should have
access to a telephone within a ten minute walk.
The Village Phone initiative was developed by combining the Grameen Banks expertise
in village-based micro-enterprise and micro-credit with the latest digital wireless technology.
Grameen Telecom (GTC) is a non-profit organization that forms part of the
Grameen Bank family of organizations, and it focuses exclusively on the deployment of
the Village Phone program in rural parts of Bangladesh. GTC buys airtime in bulk from
GrameenPhone Ltd. (GP), a for-profit corporation holding a nation-wide license to
operate and maintain a mobile cellular network throughout the country. Bulk airtime purchasing
from GrameenPhone Ltd. enables GTC to pass on savings to the Village Phone (VP) operator. GTC
owns 35% of the shares of GrameenPhone Ltd., and plans to have controlling interest in
GrameenPhone Ltd. in the near future.
The Village Phone is a unique undertaking that provides modern digital wireless telecommunication
services to some of the poorest people in the world. A Grameen Bank member (most often female)
purchases a phone under the lease-financing program of the Bank and provides telephone service to
people in her village. Each Village Phone operator is responsible for extending the services to
customers for both incoming and outgoing calls, collecting call charges, remitting payments to
Grameen Telecom, and ensuring proper maintenance of the telephone set. Repayment of the loan for
the phone set is processed through the existing loan granting and collection procedures of the
Grameen Bank. GTC prepares monthly bills for the airtime charges for each phone, and Grameen
Bank managers at the community level collect monthly payments from operators, in person, at the
village level.
She must have a very good record of repayment of Grameen Bank loans;
18
She should have a good business, preferably a village grocery store, and have the spare time
to function as the VP operator. Initially, this may be a side business and eventually switch
over to telecom business on a full-time basis after services and revenue justify a full-time
commitment.
She should be literate or at least she must have children who can read and write.
The investor should have a good business experience or background, professional or business
related skills and have the spare time to function as the dealer or operator. Initially, this may
be a side business and eventually switch over to telecom business on a full-time basis after
services and revenue justify a full-time commitment
The investor must have to place the valid and true documents while applying for dealership.
19
After analyzing all of the above factors the managers give dealership to the interested investors. The
investors can do this business with the necessary brand or promotional elements (like poster, banner,
leaflet etc) of GP. The authority of GP will charge a commission from their business.
Infotainment service:
Welcome Tune
Ring Tone
Downloading Features
Message Services:
Text Message
MMS (Multi Media Messaging)
Other Business SMS
Namaj Timing
News Update
Voice SMS
Innovative services:
20
When subscribers switch on their phones, they will receive notification of last 3 calls via
SMS. To subscribe, one has to send to 6222. To unsubscribe, one has to send to 6222.
2. Namaj Time Alert: To get daily namaz timings through push-pull SMS customers can type
"namaz" and send it to 2200. In return they will get the namaz timings for that day and will
alert the user at the due time with an sms.
3. Cricket Update Alert: Users can get cricket updates in their GP mobile phone by
subscribing to cricket alert service. To get the alert service, they need to type "cric on" and
send it to 2002. To unsubscribe from the service, type "cric off" and send it to 2002. They
will get SMS alerts for fall of every wicket, milestones (like player or team 50s and 100s)
and match summary. This service is only for ODIs.
21
1. Welcome Tune: Suppose the users is busy in any purpose. At that time some one calling him.
The user is so busy that unable to receive the call and want to make the caller wait for a
while. To do so he can set a special tune to make the caller wait. Grameenphone is right now
providing this special service from which the customers can select their tunes according to
their own choice. Users can let their friends listen to their favorite tunes every time they call.
Users can also record their own voice and play it for their friends. They either set one
common tune for all or customize a tune for individual callers.
2. Ring Tone: Ring tone is actually an alert to the user when some calls him or her. Previously
it was just a function of the hand set. But now a days with the emerge of technology and due
to different perception, different choices, different cultural norms, different impact of
reference group among the customers, ring tone is not just a tone. For this they have go to
wap.gpworld.com from their WAP enabled phone sets to download Poly Tones, True Tones,
MP3 Tones of hit Bangla, Hindi & English songs.
3. Downloading Features: GP World enables GP subscribers to get exciting mobile contents
like ring tones, wallpapers, themes, animations to customize their handsets & also enable
them to play fun mobile games. GP users can download these contents to their EDGE
enabled handsets from GPWorld (http://wap.gpworld.com/).
what should be done and there is no other source from where they can get Medicare
suggestions. At this moment they can take help from Grameenphone by just a call.
3. Bill Payment Service: Grameenphone's BillPay service brings a hassle free and secured
solution to pay Titas Gas and PDB electricity bills (PDB bills applicable for Chittagong and
Cox's Bazaar areas only).
23
an attempt to provide after sales service. Their customer managers are people just like customers
near and dear ones.
Customer Service Hotline: Today in a fast changing world, the role of the mobile phone is
increasing day by day; so are the demands of our subscribers. Customer demands are no
longer confined to making or receiving voice calls only; rather with new value added services
being introduced, subscribers are trying something new everyday. Marketers are now trying
to fulfill that need of the customers. Trained customer service agents of GP are within easy
reach; ready with personalized support related to all of their products and services. Their
trained call center professionals are available round the clock, 7 days a week, 365 days a
year. By simply dialing 121/ 121 15 (to talk directly with our Customer Service Agent) users
can find the answers to any query in the cheapest way. GPs customer managers are always at
hand to listen to any kind of complaints regarding our products and services . They provide
information related to the different products and services offered by GP, to help users make
the purchase decision that is most suitable to their communication needs.
Complaint Management: While providing the call center and care related services
customers may remain dissatisfied with any of the products or services of the customers.
They may have some complains of request. To overcome all their complains and to run the
services smoothly, they introduced a special service called Complaint Management.
Complaint Management is just to handling queries, complain, requests on mails, faxes and
letters from customers.
4.7 Pricing:
24
Due to the functional and theoretical differences between the products and services the pricing
strategy for service usually bit differs than the products. As production cost is not that much involved
rather service fees are more important here, the value based and to some extant cost plus pricing is
widely used for services. As a telecommunication service provider the pricing strategy of
Grameenphone is described bellow.
4.7.1 GP Smile Prepaid:
Start-up
Product
price
Start-up Benefit
20
Preloaded
Airtime
BDT 590
of
activation
with
15
days
validity
SMILE subscribers will enjoy reduced tariff of only Tk 1.50/min (7am-12am ) for all GP to GP calls
and Tk 2/min to any other operator (24 hours). A call to a BTCL number will cost Tk. 2. SMS to any
GP number and to other local operator's number is Tk.1 and international operators is Tk. 2. Under a
promotional offer smile subscribers now can talk to any GP number only at Tk. 0.25/min from 12 am
to 7 am in the morning. 15% VAT will be applicable on all tariffs. SMILE customers will also enjoy
great Friends & Family rates through which they can talk at only Tk 0.25 per minute and SMS at
only Tk 1 to 3 Friends & Family number.
SMILE customers will enjoy recharge facility by scratch card or flexi load with recharging facility of
tk 10 to tk 5000. They can also transfer their balances ranging from Tk. 50 to Tk. 100 balance to any
other SMILE or djuice subscriber. The balance gives validity of three (3) days. The denomination for
the recharges are as follows.
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New Validity
Tk.10 Tk.299
Tk.300 Tk.5,000
New Validity
Tk.50
Tk.300
Tk.600
Current Price
Tk 800
All new xplore subscribers will now get EDGE P3 (12am-8am) and MCA (Missed Call Alert)
subscription free for the fist 3 months, along with 100 SMS free of charge over the same period. The
tariff rate for the xplore package is as follows.
Rang
e
26
24
Hour
Tk.1.30/min
F&F: Tk.0.50
Incoming: Free
4
Tk.0.25/min
F&F
GP
and
other
operators:
Tk.1
Tk.
Outgoing:
1.30/min
local
International: Tk.2.00
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. Users can enjoy ,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.
Flexi Load for post paid: Users don't need to go to banks and stand in long queue to pay their
postpaid bill. They can pay bill through more than 15000 FlexiLoad Retailer all over the country.
Just go to your nearest FlexiLoad and pay any amount ranging from Tk 50 to Tk 50,000. The
denomination for recharge will as same as the prepid.
4.7.3 Djuice:
Start-up
Product
Djuice
price
BDT 490
Start-up Benefit
20
Preloaded
Airtime
of
activation
with
15
days
validity
27
The special or distinctive offer of Djuice is its subscribers can enjoy a reduces tariff of Tk 0.75/min
from 7 am to night 12 am which is applicable for Djuice to Djuice connection. They can also enjoy
Tk 0.25/ min from night 12 am to morning 7 am and that is applicable for Djuice to Djuice or Djuice
to any GP number. They can also have SMS service at the rate of 0.5/sms. They can also use two
FnF numbers for their special purposes. The charge for FnF is Tk0.25/min for any two selected
desired numbers. The tariff plan of Djuice with start up price is given bellow.
One important recent modification is to note here that previously djuice service was without PSTN
and ISD. But now the PSTN and ISD services is also added with Djuice. The recharging and credit
transferring facility, designed and priced for djuice, is as same as the Smile Prepaid package of GP.
Call services: Among the call services except international roaming, all other services
(FnF, business hour rate, CUG) are charged based on the usage of the services by the
corporate clients, size of the firm, type of the business and so on. But they have a specific
offer for the business users. The tariff plan for the business users are given below.
Type of call
GP GP
GP Other
FNF
ALL
TARIFE/MIN (TAKA)
Business Hour
09:00am-05:59 pm
06:00pm-08:59am
1.00
1.50
1.20
1.50
2 GP numbers and 1 other subscribers number
INCOMING Free
Free
(Including BTTB)
28
GPRS/EDGE
bellow.
Going outside Bangladesh: To get this roaming service the user at first has to
open a security deposit. There are two options for that type of security deposits.
Those are ..
*Option 1: BDT 0.00 (both Bangladeshi & Foreign Nationals) + Mandatory Auto
Debit
*Option 2: USD equivalent to BDT 20,000 (for Bangladeshi Nationals) / BDT 50,000
(for Foreign Nationals) + Optional Auto Debit
GP currently accepts any locally or internationally issued International Debit or
Credit Card (Subject to change anytime) for International Roaming related
transactions (Security Deposit / Bill / Advance Payment etc.). The Credit Limit for
using GP International Roaming service will be:
= The International Roaming Security Deposit + BDT 1000
When subscribers accumulated IR usage (Billed Amount + Unbilled Usage) gets near
to their Credit Limit, they will be notified through SMS and will be requested for bill
payment. If their accumulated IR usage
(Billed Amount + Unbilled Usage) exceeds the Credit Limit, their IR service will be
barred automatically
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Call Type
Pulse
BDT 25
60/60
BDT 25
60/60
60/15
BDT 4
60/60
SMS Outgoing
BDT10
NA
SMS Incoming
Free
NA
EDGE/GPRS (Uplink-Downlink)
BDT 4 / 10 KB
NA
For receiving International calls, Call forwarding charge (from your home country to
Bangladesh) is not included here.
BDT/Minute**
Pulse: 30/30
Messaging services:
SMS banking, SMS information services will come under the SMS based services and voice
mail charges will come under the voice sms. Here the charges described below.
30
Product
djuice
On-Net
Off-Net
International SMS
Smile
BDT 1.50
BDT 1.50
BDT 2.00
BDT 2.00
BDT 1.50
BDT 2.00
BDT 2.00
Post paid
BDT 1.50
BDT 1.50
BDT 2.00
BDT 2.00
djuice
BDT 0.50
BDT 1.00
BDT 1.50
BDT 2.00
to
to
to
to
GP
E-mail
International(Selected Operators)
Port (any competition)
3 tk
3 tk
15 tk + VAT
5 tk
The charge to send a Voice SMS is BDT 1.5/min + VAT (users can send a message up
to 2 minutes long). Just dialing *0171XXXXXXX.
Users can retrieve a new message once - for free. Just dialing *0*
Users can retrieve old messages by dialing *1*. Charge is BDT 1/min + VAT.
Internet services: To get internet access anytime wherever the user are and to provide a
great web surfing facility Grameenphone brings the EDGE (Enhanced Data Rates for Global
Evolution). With this technology the subscribers can get access to internet even from their
hand set. It is about 8 times faster than GPRS.GP is right now providing this services with
four types of packages. Those are Package 1 (P1), Package 2 (P2), Package 3 (P3) and
Package 4 (P4). The tariff structure for This Package is given below.
P1
P2
P3
P4
Subscribers
All
All
Postpaid
Prepaid
Tariff
None
BDT 1000/Month BDT 300/Month BDT 60*/Day
Browsing Charge BDT 0.02/KB Nil
Nil
Nil
31
Content
As per content
As per content As per content As per content
Download
Model
Nokia
Offered GP
Market Price (BDT) Corporate
(BDT)
E71
31,500
29,999
1500
E66
32,000
30,499
1500
Model
E71
Nokia
Offered GP
Market Price (BDT) Corporate
(BDT)
31,500
29,999
E66
32,000
30,499
1500
1500
We have stated earlier that Village Phone is a combine effort of Grameen Bank and Grameen Phone.
This package is mainly for those small type investors in the rural areas who run their small
businesses by taking short loans under the micro credit program of Grameen Bank. In this package
the investor at first have to purchase an hand set by taking a required amount of loan under micro
credit program of GB. With the phone set they can purchase a sim-card from the GP authority at a
rate of BDT 100. After getting the line they can start their business according to the following tariff
plan.
Outgoing
Call
Charges
Offer
Start-up Price
Tk. 500
Tariff
Pulse
1 Sec (Flat)
32
GP to BTCL
GP to ISD
Free
Free
Important notes
1. BTTB and ISD - Peak (8AM 10PM) and Off-Peak (10PM 8AM).
2. 10% Service Charge and 15% VAT applicable.
The pricing policy of this service is bit similar to Village phone. In this service the investors (the
retailers) first have to purchase a sim-card from the dealers at rate of BDT 600. After opening their
own retail outlet they can provide this service by recharging any amount they want. For every Tk
1000 recharge they will get Tk 27. For every scratch card they get the following discounts as their
profit.
Tk.300
Tk 7.00
Tk.600
Tk 15.00
Apart from the recharge and scratch card facility the investors will get the following facilities.
Outgoing Call Charges
Offer
33
Products
Start-up Price
Tariff
Pulse
GP to BTCL
GP to ISD
Economy ISD Calling
Monthly Discount/Bonus
(Postpaid + Prepaid)
Tk. 600
Tk. 1.00 (Ex. Vat)
1 Sec (Flat)
Tk. 1.00 (Ex. Vat)
ISD rate by BTTB board
Economy ISD rate
10% bonus on daily usage
Free
Free
Important notes
1. Start up price for GPPP is TK.600. There is no free offer with the GPPP startup.
2. BTTB and ISD - Peak (8AM 10PM) and Off-Peak (10PM 8AM).
3. BTTB pulse 30 sec / min.
4. 15 % vat applicable.
5. All Tariffs are subject to change.
Among all of the promotional tools stated above except personal selling, GP uses almost all of those
promotional tools. Depending on the service offerings, service attributes GP used different
promotional tools. The promotional tools used by GP are sequentially described bellow.
4.8.1 Advertising:
Advertising refers to the activities that enable the customers to become aware of the product and at a
time enable the firms to make the product available to its target customers with the help of some
effective media. The advertising tools used by GP can be categorized in to two categories. Those are
print media advertising and electronic media advertising.
their printed materials in some selected place to capture the attention of the people.
Grameenphone use that type of advertisements by providing printed information in
the bill boards, specialized tools in the speed breakers and road deviders with
umbrella of the traffic police. Printed advertisements in the vehicles are also one type
of printed advertisements.
Bill Board of GP
B. Point
of
Purchase
A sample of Printed
materials of GP used in
the retail outlets
A TV commercial of GP
36
This is one type of promotional tool in which the firm directly communicates with the customers to
inform about their product offerings. GP uses this promotional tool only for the existing customers to
inform them about the new offerings. Suppose GP is going to offer a reduced tariff or new talk time
package of sms package. Then to inform this issue to the existing customers they will send sms to
each customers like this Dear subscriber, type yes and send to 3030 to get 250 sms free. Conditions
appliey. This one type of Direct Marketing.
An example of Direct
marketing adopted
by GP.
37
This is one type of tool where the firm use paid or non paid form of communication to enhance the
brand image. Here the public relation is a paid form of communication and publicity is the non paid
one. Suppose if GP sponsored any sports event it is a paid form of promotion but if in the next day
any daily news paper wrote a collum regarding the sponsored event of GP then it will be non paid
form of promotion. GP conducts that type of paid form of promotions by sponsoring sports events
and culture oriented events. GP also provided relief for the flood effected and sidr affected victims.
5.1Financial Review:
Amidst global recession and intense competition in the market, Grameenphone has had a good year
in terms of subscription growth and its financial consolidation. Competitors are engaged into price
war and with new entrants coming into the market, there is a possibility of exhilarating
competition ahead. Regulatory authorities have played a pivotal role in business environment with
new directives and guidelines, such as reduced interconnect prices, guidelines for infrastructure
sharing and likewise. Grameenphone continued with its product innovation and offering wide array
of services, namely introducing GP branded handsets and edge modems bringing alternate revenue
streams. Side by side, Grameenphone embraced cost optimization initiatives through operational
excellence program to maximize profit. In addition, Grameenphone opted for cost-efficient network
solutions through swapping of assets with Huawei equipments. The most colossal episode for
Grameenphone was its listing in the countrys two bourses in Nov09, which entitled Grameenphone
to avail a reduced corporate tax rate.
Subscription:
During the year, subscription base increased by 11% with 2.27 million additions.
Revenue:
Revenue increased by 6.4% (BDT 3.9 billion) mainly due to growth in traffic revenue driven
by subscription growth and new revenue streams from sale of GP branded handsets and edge
modems.
The growth in revenue was partially offset by lower interconnect revenues resulted from
reduced interconnect rates set by the regulator.
Increased data revenue from data subscriptions also contributed to the revenue growth.
Operating Expenditure:
39
Total operating expenditure in 2009 decreased by 9% (BDT 2.8 billion) from 2008 mainly
due to lower cost of network operation (mainly in interconnection and BTS maintenance) and
lower subscription acquisition costs.
A total savings of BDT 3.5 billion has been achieved through the operational excellence
initiatives during the year.
Net profit before tax increased by BDT 7 billion for the year 2009 compared to 2008. The
surge was
Income tax expense was lower due to one-time effect for reduced tax rate. However, it was
partially
In addition, 2008 net profit after tax was lower due to one-time regulatory payment on
account of government compensation.
Total Assets:
Grameenphones current asset base increased by BDT 7.6 billion mainly in cash and bank
balance resulting from higher net cash from operations and proceeds from IPO.
However, non-current asset base decreased by BDT 6.8 billion due to higher depreciation
and amortization expenses than fresh investments.
Capital expenditure during 2009 was BDT 10.4 billion compared to BDT 27.4 billion of
2008.
Total Liabilities:
Total liabilities decreased during the year mainly due to early settlement of entire bond
obligation, repayment of short-term borrowings, reduced deferred tax liabilities due to
change in corporate tax rate and allocation of shares to PPO investors from advance against
IPO.inancial Rev
iew
5.3Business Performance:
40
Revenue:
65.3 Bn
Earnings per
share:
BDT 12.08
6%
12%
391%
Gross Profit:
32.2 Bn
Operating
Profit: 20.5 Bn
Grameen
Phone
64%
Net operating
cash flow per
share:
BDT 24.77
22%
34%
Profit Before
Tax: 18.6 Bn
Net Profit After
Tax: 15.0 Bn
61%
402%
41
Their Social investments are consolidated in three main focus areas, namely, Healthcare, Education
and Environment.
Health:
Almost half of the countrys population lives below the poverty line and are deprived from basic
primary healthcare. In partnership with Pathfinder International and USAID, Grameenphone has
been supporting the Safe Motherhood and Infant Care program since May 2007. Under the
program, free comprehensive primary healthcare services are provided to economically disadvantage
pregnant mothers and infants through over 300 Smiling Sun clinics located in 61 districts
around the country. So far 1,333,314 services have been provided to the economically
disadvantaged mothers and infants under this program. In 2009, two clinic-on-wheels and five
ambulances were handed over to different NGOs of Smiling Sun Network, to increase the
accessibility of maternal and infant healthcare services to the hard-to-reacheconomically
disadvantaged population. Grameenphone, jointly with Sight Savers International, has been
organizing free Eye Camps to ensure eye-care services since 2007. In total, 21 such free eye-camps
have been organized throughout the country and a total of 29,270 patients were given free eye care
support, among them 3,887 patients were administered Intra Ocular lens or cataract surgeries.
Education:
The main goal of Grameenphones CSR Eductaion initiative is to provide access to education and
information.
42
Grameen Shikhkha:
Grameenphone provides scholarship to meritorious but underprivileged
students through a scholarship fund at different academic levels, in
collaboration with Grameen Shikhkha, an organization of Grameen Bank Family.
Information Boat:
Grameenphone, in partnership with CARE Bangladesh, started the Information Boat project. Boats
are also equipped with digital contents, such as livelihood and agricultural information, suited for the
specific areas served by the designated boats. A typical information Boat is equipped with
computers, Internet, photocopies, fax machines, printers, webcams and scanners. So far, four such
Information Boats have been launched in the northeast region.
43
Environment:
Our Environmental campaign titled Stay Green, Stay Close, was launched in June 2009 with an
objective to support a healthier environment through innovative environmental activations and
initiatives, as well as increasing awareness among different stakeholder groups. As part of this
program, over 21,000 free saplings were distributed across the country.
Other Initiatives:
Sponsoring Special Olympics Bangladesh:
Grameenphone became the sole sponsor of Special Olympics Bangladesh in 2007 when it provided
necessary support and training for the athletes to participate in the Special Olympics Games 2007 in
Beijing, China. The team won 71 medals in different categories. In 2008-09, the company supported
and organized regional talent hunts across the country. A total of 94 (64 male and 30 female)
intellectually challenged athletes were selected from four regional talent hunt programs. These
44
selected athletes are to be trained and groomed for the Special Olympics World Summer Games
2011 in Athens, Greece.
CHAPTER-8
(Conclusion)
45
The purpose of this paper has been to analyze the market expansion activities of Grameenphone. GP
is a very big telecommunication company. Therefore, its very difficult for us to analyze its each and
every strategy precisely in this small study.
There can be various ways through which a business organization can achieve success in the market,
After scanning its external & internal environment and considering all alternatives, we have tried our
level best to sort out the best way as per our thinking ability for GP to run ahead.
But finally we can say this much that it has a large potential both in the short and long run due to its
sound distinctive competencies .
46