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MKT 431 Final Assignment
MKT 431 Final Assignment
Chapter-01
1.2 Objectives
To find out the strategies need to implement for achieving its long term
goal.
To identify the factors influencing on the marketing plan of the company.
Provide an overview of the banglalink
To evaluate the marketing plan of the banglalink.
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1.3 Methodology
The report covers the operation of banglalink Desh. Moreover, history of Banglalink and
its Desh segment and Its prospects in Bangladesh, its operational issues and problems,
mission, vision and objectives of the company are also covers. A detail of functional
activities of Banglalink is provided to get an understanding of the organizational structure
and activities.
For this study information is collected from both primary and secondary sources. Investor
relations section of the Website www.banglalinkgsm.com is an immense source of
information.
1.4Limitations
This paper suffered from a number of limitations. Some are stated below:
2.1Banglalink
Banglalink began operations in Bangladesh in February 2005; its impact was felt
immediately: overnight mobile telephony became an affordable option for customers
across a wide range of market segments. Banglalink is new brand name of Sheba world
(019), which has been providing Global Service of Mobile (GSM) in the country since
1998. Orascom Telecom bought 100% share of Sheba Telecom and gave its new name as
Banglalink aiming to provide quality service in Bangladesh.
2.2Making a Difference
The mobile phone has become the symbol for the positive change in Bangladesh. This
positive change that is quite correctly attributed to Banglalink has become the corporate
positioning of banglalink and is translated in their slogan "making a difference" or "din
boodle". "Making a difference" not only in the telecom industry, but also through its
products and services, to the lives of its customers. This corporate stance of "making a
difference" has been reflected in everything banglalink does.
Mission
Banglalink changed the mobile phone status from luxury to a necessity and brought
mobile telephone to the general and this vision of banglalink.
Management Team
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2.3 Department
Banglalink has different department under their organization and they are:
1. Sales and Marketing Department: This department's main duty is to research and
product development.
Mission
Banglalink Desh‘s mission is ‘"bringing mobile telephony to the masses".’
Vision
The vision of Banglalink Desh is to provide "ek rate " is to be the best-quality
Service Provider in Bangladesh.
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3.1Situation Analysis:
In 2005 Banglalink have started its first operation in Bangladesh. The services have been
well received and the marketing is the key to the development of its brand image as well
as the growth of the customer base. Banglalink now offering different packages for the
customers but at the begging year they offered packages as well as different mobile sets
for the customer. After that Banglalink has come with a new promotional offer which is
called Desh. This segment is now leading the market. From the very first time of
launching Banglalink Desh it has been a competitive advantage of Banglalink by offering
very low call rate with a single promotional offer.
The theme of Banglalink Desh segment is spreading with the sentence called “Ak Desh
ak rate”. Which particularly means Desh is covering the whole market by only one single
call rate. This is easy to remember as well as cost effective to purchase and use
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comparing to its competitors. As Desh segment of Banglalink has brought lowest call rate
segment in Telecommunication world but AKTEL stunned the market introducing one-
second pulse. So Banglalink has been faced a competitive advantage of this offer by one
second pulse.
On the other hand GP made history with launching EDGE, the very first step towards
third generation mobile phone. As we know there are lots of potential consumers who
remain up to date with the service. Launching EDGE influences consumers to move
towards new generation facilities than using one single lower call rate. Consumers are
now more attracted to these two steps have been affecting the promotional offers made by
Desh.
In a contrary, City Cell's free handset offer coincided with Sing Tel's acquiring this
CDMA operator last week. Graph of our mobile phone market’s growth was to take the
shape of a "Hockey-stick" by this year. These things affect Banglalink Desh. So,
Banglalink particularly take them as their competitors.
3.3Market Needs:
Banglalink is providing a wide range of services for its valued customers. The company
seeks following benefits that are important for its customers:
Banglalink has offered a very low call rate which is been called "Ak desh Ak
rate". Before Banglalink starts its operation the tariff was higher than any other
period. At that time the three mobile companies charged tk. 6 for per minute
outgoing calls and tk.2 for per SMS. But the company was committed to provide
quality service at a lowest price. As a result Banglalink is the fastest growing
telecom company in Bangladesh. This is because of providing quality service at a
lowest price.
Banglalink Desh is providing quality service to the employers. The customers
don’t like the network problem and slow networking system. Banglalink recruits
high professional employees and experts to make the network available for the
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customers. It is the company which expands its network all over the country
within the shortest period of time after starting its operation. Banglalink is
committed to its customer about the quality service.
Banglalink has both online and physical customer care service for its
customers. 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
banglalink is expanding its customer care centers and upgrading its quality.
Banglalink is committed to meet the customer demand and problem as soon as
possible.
In 2005, Banglalink was derived from Sheba phone when ORASCOM graphed the
company. At that time Banglalink had only a few thousand customers. However, the
number of customers increased by four million within three years. In Bangladesh now it
becomes the second largest telecom company. Though there is a huge competition in the
telecom industry, Banglalink has been able to expand their customers day by day by
reducing the call rate at the same time they are promoting different types of
advertisement which grab the attention of the audience to buy their products. This
company also offers various types packages and they also promote many convenience
offers to their customers occasionally. For instance, in Eid festival, the first day of bangle
new year, 31st night etc. These are some reasons for which the marketing growth of
banglalink is increasing significantly.
To prepare a marketing strategy it is necessary to know the position of the product in its
Product Life Cycle.
The goals of PLC management are to reduce time to market, improve product quality,
reduce prototyping costs, identify potential sales opportunities and revenue contributions,
and reduce environmental impacts at end-of-life. To create successful new products the
company must understand its customers, markets and competitors.
To prepare a marketing strategy it is necessary to know the position of the product in its
Product Life Cycle.
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Company’s objective must be profitable growth. Since marketing has the main
responsibility to achieve profit and lay down strategies for capturing them, Banglalink
has followed the same technique in the operations. The company position dictates the
company’s growth strategies.
Weakness
Lack of experience
Shortage of workers
Opportunity
Innovative packages
Expandable market
Easy access of raw materials
Low price of raw materials
Threats
Political turbulence
Increasing competitors
3.7. Competitors
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Banglalink made a revelation in the telecommunication sector. Citycell was the first to
start telecommunication business in Bangladesh in 1989. GP and Aktel started their
business from 1997 & 1998. The service charge was great but the facilities was few.
Banglalink made the history by inviting Variety of services at a very cheaper rate.
Grameenphone
AKTEL
Banglalink
Teletalk
Warid
Grmeenphone is the leader of the mobile market but banglalink is the second biggest
company in Bangladesh. Banglalink is the main competitor in the mobile market.
The market research also concludes that although banglalink is not the market leader in
telecommunication market, they are the Market Challenger, as the following figure shows
the market share of banglalink in the telecommunication market
The firms that are not in the top most position but quite large, this runner up firms
can challenge the leader and other competitors in an aggressive bid for more market
share, and it is challenging the market. A market challenger first must define which
competitors to challenge and its strategic objective. A challenger can attack the market
leader, a high-risk but potentially high-gain strategy that makes good sense if the leader is
not serving the market well. To succeed with such an attack, a company must have some
sustainable competitive advantage over the leader—a cost advantage leading to lower
prices or the ability to provide better value at a premium price. It could include a strategy
of market challenger.
Banglalink‘s competitor to challenge the market is GRAMEEN PHONE (GP) and their
strategic objective is “To receive an economic return on its investment
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3.8 Product
Banglalink Desh is a pre – paid package product. It is mainly called a service product
which is not tangible.
Prepaid is a system where you pay for your phone calls in advance. Prepaid gives you the
freedom to use your mobile within your budget. It is an excellent way to speak your
language.
The products, banglalink Prepaid has network mobility feature which helps a subscriber
to move around where banglalink has its coverage.
30 days extra incoming facility once the validity is over and then 90 days grace
period on scratch card and e-fill
banglalink is offering you the following Prepaid products to suit your connectivity needs:
Pre-Paid M2M
Pre-Paid Standard
Packages
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Banglalink Desh has got different type of customer oriented packages for the customers.
It has different types of pre-paid packages. They are:
Banglalink Desh Ek Rate:
Those who are currently enjoying 12 paisa/10 sec call rate will continue to get this call
rate if minimum usage in a month is tk. 60 (excl. vat). in case if usage is less they will be
shifted to new 13 paisa/10 sec call rate.
Upon package migration the 12 paisa/10 sec call rate will no longer be valid.
“ek rate darun” will be the default package for all new connections
09:00-17:00 0.25
banglalink
17:00-00:00 0.25
00:00-09:00 0.1
banglalink fnf 09:00-17:00 0.1
17:00-00:00 0.15
00:00-09:00 0.15
to other operators 09:00-17:00 0.25
17:00-00:00 0.29
00:00-09:00 0.1
other operator fnf 09:00-17:00 0.1
17:00-00:00 0.15
7 fnf (maximum 3 fnf in other
fnf
operators)
1 seconds pulse:
Banglalink has introduced 1 second pulse for its customers. the new banglalink desh 1
second package provides customers 1 second pulse to any operator any time of day. this
means customers will now only pay as much as they talk and the charge is only 2
paisa/sec any time in any local number.
All banglalink pre-paid customers can avail the new 1 sec pulse package
The term “market segmentation” refers to subdividing a market on the basis of some
common criteria. The purpose of segmentation is the concentration of marketing energy
and force on the market segment to gain a competitive advantage within the segment.
Market can be divided on the basis of some of the criteria and they are given below
This is the most common form of market segmentation. Marketers may segment
according to geographic criteria—nations, states, regions, countries, cities etc. geographic
segmentation plays an important role if any organization decides to perform on a large
scale basis. Since it is done on the basis of nations, states, regions, countries, cities same
product may need to be sold in different strategy because of the geographic variation.
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Demographic segmentation is, basically, the market segmentation executed through the
adoption of various demographic factors such as Age, Sex, Family size, Family life cycle,
Rent, Occupation, Education, Ethnicity, Nationality, Religion, Social norms etc. It helps
the Organization divided the market into several segments or groups, each with a
common variable. This strategy of market segmentation aims to understand the potential
market, and take the necessary measures to ensure that the needs of a population group
that are met.
Behavioral segmentation divides a population based on their behavior or the way they
respond to a product. Since the consumers considers several factors before taking a
decision about buying any product and that is why consumer decision making is affected
by his behavior and that is exactly how the behavioral segments are targeted. This market
segmentation based on differences in the consumption behavior of different groups of
consumers, taking into account their lifestyles, patterns of buying and using, patterns of
spending money and time, and similar factors. One of the five common segmentation
strategies, its objective is to define specific niches that require custom tailored promotion.
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There are several criteria on the basis of which the market is segmented and on the basis
of those any company distribute their product so that the consumer consumes their
product. As for Banglalink in case of “Banglalink Desh” package Banglalink follows
several criteria. They are
Niche Marketing
A niche market is the situation of the market in which a specific product is focused. The
market niche defines the specific product features aimed at satisfying specific market
needs, as well as the price range, production quality. It is a very small market segment. In
Niche Market strategy the products aimed at a wide demographic audience, with the
resulting low price. The niche market is a highly specialized market which aims to
survive among the competition from numerous super companies. Even established
companies create products for different niches, for example, Hewlett-Packard has all-in-
one machines for printing, scanning and faxing targeted for the home office niche while
at the same time having separate machines with one of these functions for big businesses.
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In the aspect of differentiated marketing any company produces different product for
different customer. They develops different product according to the need of the
customer. If we consider “Banglalink Desh” package of Banglalink we will see that it
follows this strategy because “Banglalink Desh” package is targeted to a specific group
or segment of people not for all the customer of Banglalink.
Targeting strategies are generally used in terms of advertising as ways to maximize sales
profits by directing marketing projects directly at the most likely consumer base. There
are several different targeting strategies but the basic goal of each remains the same, to
identify the target market or audience who is most likely going to be interested in buying
your product so that you reach the people who will make a purchase. In general, the aim
is to spend money reaching only consumers who want your services instead of a wide
audience out of which only a few people may be interested in your services or products.
In case of Banglalink Desh package Banglalink has targeted the youngster of our country
providing lowest call rate which is the main benefits the youngster seek from the
telecommunication service provider.
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The Unique Positioning Strategy is the most precise, practical, reliable and most
powerful tool to attain uncontested market leadership in a short time. It enables
companies and people alike to focus entirely on their foremost strengths. Companies can
clearly identify the most burning problem of a clearly defined target group and thus
create a compelling customer value. In case of “Banglalink Desh” package of Banglalink
by giving the lowest call rate Banglalink has created themselves a unique position in the
mind of the customer which is a very unique feature of Banglalink apart from the other
competitors of Banglalink. To deliver innovative, customer focused product and to the
benchmark for customer service excellence Mission, to deliver innovative, customer
focused products and to be the benchmark for customer service excellence.’
Marketing Objective
Organization that sells to consumer and business markets cannot appeal to all buyers in
those markets or at least not to all buyers in the same way. Buyers are too numerous, too
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widely scattered, and too varied in their needs and buying practices. In case of
BANGLALINK, from teenager to any age group; from lower-middle class to upper-
upper; from Teknuff to Tetulia regardless to race, religion, gender literacy level, life style
or personality any and every single person who is in need of a telephone line backed with
affordability spend the expense of possessing a mobile phone is their target market. This
indicates that in choosing market segment, segmental marketing is appropriate for them.
That means the company should recognize that buyers differ in their needs, perceptions,
and buying behavior. For this BANGLALINK have made a various type of customization
in phone lines and phone set along with different prices are charged against each segment
of the target market. Below the various types of mobile phone sets, lines, prices and the
billing system offered by BANGLALINK are discussed related to geographic,
demographic, and psycho-graphic segmentations.
If we look at to the segments from the geographic angle we find that it started its service
from the capital of Bangladesh – Dhaka city. Then it extended its coverage area into
Chittagong, Sylhet, Khulna, and gradually the 61districts of the country. Although
Banglalink is covering most of the part of the area, still they left 3 more districts. There
are government restrictions for the network coverage of those hill traces areas
There is other large company in the market therefore Banglalink Desh has to make their
pricing strategy very carefully. Generally this company used low cost for enduring in the
market.
3.17.2 Strategy for Desh package:
Among the two pricing strategies Banglalink Desh follows penetration strategy. We all
know that Banglalink Desh offers the lowest price of market to capture the market share.
Consumer of our country wants the cheaper price that is why they choose Banglalink
Desh as their preferred package. As a result Banglalink Desh become the one of the
successful SBUs of Banglalink.
•20% outgoing call free on the basis of the total incoming call.
•Tk. 120 free for the every new connection.
•Unlimited lifetime for any amount of recharge. (At least Tk. 10)
Factors affecting price determination:
Demand:
Banglalink Desh always estimates the demand of the consumers and sets price according
to meet the demand, when the new product comes into the Market people often less likely
to buy the product.
Competitive reaction: Banglalink Desh took their next step according with what their
competitors did about their pricing strategy. If the competitor reduced the cost, Desh
package reduced the call rate more than that.
Cost: Banglalink Desh was always very much aware about the cost compare to their
competitors. Total cost is a major factor in selecting the price of the package. Different
types of cost like fixed costs, variable costs, total cost is a primary factor that influence
the price of each product and keeping touch with these factors and ways banglalink
always use penetrating strategy for its call charge.
3.18 DISTRIBUTION
Customers of Banglalink Desh do not usually get their packages directly from the
company. An indirect approach of distribution channel is maintained by the company for
their customers. The company usually appoints dealers for selling the packages and the
customers are able to get those particular packages through the interference of the
dealers. Consumers can get their Desh packages from the customers and enjoy different
tempting offers. Banglalink always wants to sell as many products as possible to make
their products available to each and every customers and consumers.
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through leaflets, festoons and banners coming up with different attracting offers to
capture most of the potential customers and consumers.
In a country where the mobile users are below 70%, the best strategic move for
any operator would be to concentrate on expanding the subscriber base. To expand the
subscriber base and to build a brand image among the existing & potential subscribers,
banglalink must concentrate on different issues with which the subscribers are not
satisfied at the present condition. To survive in the competitive market and to grab
majority of the corporate subscriber base, banglalink must concentrate on the following
issues:
Network quality is a very important tool to evaluate the service quality of cell phone. As
the existing subscribers of banglalink are not satisfied with the current network condition,
so, the top level management of the company should concentrate on this issue so that they
can improve the quality of the network. Banglalink technical department has to be more
conscious to ensure best quality network in the country.
Banglalink has already created a positive perception among the subscribers with its
fastest growing network coverage. Within a short span of 1 year operation, banglalink has
covered 61 districts and 88% population base under its network coverage. Though the
existing subscribers are satisfied with the network coverage, banglalink is still way
behind the competitors like Grameephone, and AKTEL. So to ruin the position of GP or
AKTEL, banglalink must keep up the track of improving its network so that 100%
population base can come under its network base.
Banglalink, the second largest mobile phone operator in the country, has not finalized its
decision about bidding for a 3G license due to uncertainty in the market and other
unresolved issues. Banglalink must add more value added services to its line-up, such as
EDGE, Data, Fax, Video call etc. recently Teletalk introduced Video calling & mobile
TV facility for its subscribers and this service is still not available with banglalink. To
compete in the market, and to satisfy the customers, banglalink has to be up to date
regarding the innovation and introduction of more value added services.
To ensure complete mobility solution with mobile phone service banglalink has to
improve its overall service quality. Banglalink has to invest more in all sectors of
development to ensure better quality service for its subscribers. By hiring more skilled
people, and providing training to its existing employees, banglalink can ensure a superb
employee base that will be eligible to provide best service to its valued subscribers.
CONCLUSION
Banglalink a green horn cellular company has improved its condition in a very short
duration which has been possible for the proper marketing policy of the company. As a
result the organization has been spreading its business progressively from which it is
understandable that their marketing plan is appropriate to run their business in a full
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swing. In addition, there are other cellular companies which spread their fames in the
telecommunication industry. Therefore, to become a market leader of the
telecommunication aspect Banglalink has to maintain their marketing strategies very
carefully and should work hard to improve their creativity and innovation to compete
with other companies.
Bibliography
1. www.banglalinkgsm.com
2. Marketing Management 12e- Philip Kotler & Keller
3. Fundamental of Marketing – Philip Kotler
4. Marketing 13 Edition - Etzel, walker &Stanton