52408444 banglalink final

8/15/2019 52408444 Banglalink Final

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Methodology

Origin of the study:

The report is done as a part of the research of the course MKT 201 (Marketing

Management). The report focuses on Banglalink as we found much interest in the

flourishing telecom industry.

The research paper is prepared for Mrs. Sadia Shabnam lecturer of Business

dministration !ept. at "ast #est $ni%ersity. This research is prepared during the

semester &all'200 and would e sumitted in the same semester.

Research Method:

The research paper is made focused on the data collected from different sources.!ata was mainly otained from internet and marketing department of Banglalink.

Limitations:

*ome confidential factors were e+cluded in this study. The employees did not share

the company,s secret with others which might ha%e impeded data collection.

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Telecom Industry

Telecommunication:

Telecommunication links %ia satellites are ringing aout re%olutionary changes in

the fields of communication. The arriers of spaces and time ha%e totally collapsed.

-ot %ery long ago it took days to communicate to someone through a letter ut new

*T! and *! facilities ha%e made communication an instantaneous process. The

world appears to ha%e contracted or een s/ueeed into anyone in any part in the

world.

What Telecommunication Marketing Is:

#e all know the definition of Marketing is t,s a process y which indi%iduals andgroups otain what they need and want y creating and e+changing products and

%alue with others3. *o we can say that telecommunication is process which telecom

company or operator,s presents their products and ser%ices. Telecommunication has

a great role in modern economy and society. #ithout it we can,t thing aout the

prosperity of the society. -ow'a'days in most of countries telecom industry

contriutes a huge share of national income. Telecommunication makes the whole

world as a gloal %illage. *o people can communicate with each other from

anywhere of the world.

Mobile Phone scenario in angladesh:

Bangladesh has the lowest telephone penetration rates in the world and e%en in

*outh sia. ccording to a report y the nternational Telecommunication union

(T$) only 1.45 among 100 people of Bangladesh own telecom facilities. The

telecommunication industry in Bangladesh is composed of si+ players. Bangladesh

Telecom 6imited was the first entrant in the market ack in 177 when it was

awarded a license to operate cellular. *ince then it has een renamed to 8acific

Bangladesh Telecom 6td. and gi%en the Brand name 9itycell !igital to its cellular

ser%ice. :rameen 8hone ktel Banglalink Teletalk and #arid ha%e entered theindustry with %arious changes in etween.

n the past ; years the market has more than douled growing from 1.4 million

suscrier in early 200; to


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!om"any #istory

Orascom Telecom angladesh Ltd.

Ty"e Subsidiary

$ounded %&&&

#ead'uarters

Tiger #ouse( #ouse ) SW*#+,-(ulshan /0enue( ulshanModel To1n( 2haka(angladesh

/rea ser0ed 34 districts and --5 thanas

6ey "eo"le Rashid 6han( !7O

Industry Telecommunication

Products Tele"hony

Re0enue Tk.%8,, million

Parent Orascom Telecom S.7. 7gy"t

Sloganmaking a differenceonu0utir net1ork

Website htt":99111.anglalinkgsm.com

#hen Banglalink entered the Bangladesh telecom industry in &eruary 2004 the

scenario changed o%ernight with moile telephony ecoming an e+tremely useful

and affordale communication tool for people across all segments.

#ithin one year of operation Banglalink ecame the fastest growing moile operator

of the country with a growth rate of 24= percent. This milestone was achie%ed with

inno%ati%e and attracti%e products and ser%ices targeting the different market

segments> aggressi%e impro%ement of network /uality and dedicated customer care>

and effecti%e communication that emotionally connected customers with Banglalink.

Banglalink entered the market with a promise of making moile phone affordale for

people. This promise was kept and Banglalink was the first operator to introduce a

flat rate for all calls (inside own network and others operators) for the con%enienceand ease of customers. Thus desh3 was orn ? the est prepaid package for

call any network. The flat rate for desh (one rate all throughout the day for any

operator) is taka 1.;4@min and there are < &n& (friends and family) ? to any operator.

Banglalink also ladies firstA ? The only telecom package that caters to

communication needs of women of Bangladesh. 6adies firstA e%ol%es around the

concept of community ased communication where woman to talk certain numers

3

http://en.wikipedia.org/wiki/Category:Types_of_companieshttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Gulshan,_Dhakahttp://en.wikipedia.org/wiki/Gulshan,_Dhakahttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Telephonyhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Orascom_Telecomhttp://en.wikipedia.org/wiki/Sloganhttp://en.wikipedia.org/wiki/Websitehttp://www.banglalinkgsm.com/http://en.wikipedia.org/wiki/Category:Types_of_companieshttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Gulshan,_Dhakahttp://en.wikipedia.org/wiki/Gulshan,_Dhakahttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Telephonyhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Orascom_Telecomhttp://en.wikipedia.org/wiki/Sloganhttp://en.wikipedia.org/wiki/Websitehttp://www.banglalinkgsm.com/


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mostly to maintain a perfect alance etween professional and personal priority.

Cence ladies firstA Dffers ; &n& and per second pulse after 20 seconds from the first

minutes at Banglalink numers.

Targeting the corporate and *M" segments Banglalink launched Banglalinkenterprise3 with state of art ser%ices including :8* corporate *M* roadcast

dedicate customer relationship management and customied packages. Banglalink

enterprise offers customied telecom solutions for different usiness as per their

re/uirements and the oEecti%e of Banglalink enterprise is to assist the clients at

e%ery step as their usinesses grow.

Throughout the year Banglalink continued offering products and ser%icesapproaching different consumer segments with distinct communication needs. n

ugust 2005 Banglalink ecame the first company to pro%ide free incoming calls

from BTTB for oth postpaid and prepaid connections

Banglalink focused hea%ily on enhancing ser%ice and /uality during 2005. These

enhancements were done in terms of network /uality and customer ser%ice. There

was aggressi%e impro%ement of indoor co%erage and where%er necessary

especially in'uilding solutions were installed in case of enterprise customers and

corporate clients. To pro%ide etter customer ser%ice a new e+panded state of the

art call center has also een estalished. t the end of the 2005 there has een a

si+ customer care center and 5< franchise centers across the country attending

%arious customers with different /ueries.

Banglalink subscriber base grew by a hefty 253 percent in 2006 while the overall industry

rose by almost 135 percent during the period, says a press release commenting on Banglalink

phenomenal growth !ashid "han, the #$%, said &in less than two years Banglalink has

established itself as a reliable, innovative and customer focused mobile operator 't is fully

geared and committed to maintaining the same momentum and growth in future(

Company Background

Orascom Telecom #olding S./.7. (FDrascom TelecomF) or (FDTCF) was

estalished in %&& and has grown to ecome a maEor player in the

4

http://en.wikipedia.org/wiki/BTTBhttp://en.wikipedia.org/wiki/BTTB


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telecommunication market.

DTC is considered among the largest and most di%ersified network operators in the

Middle "ast frica and *outh sia and has ac/uired in early 200 a license to

operate moile ser%ices in -orth Korea. Drascom Telecom is a leading moile

telecommunications company operating in si+ emerging markets ha%ing a populationunder license of ;


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owned susidiary of Drascom Telecom. Banglalink had 1.0< million connections until

!ecemer 2004. The numer of Banglalink users increased y more than 24< per

cent and stood at


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SWOT !om"arison Sheet

!om"etitor Information

7

*trengths My 9ompanyBanglalink

9ompetitor :rameen

8hone

9ompetitor B#arid

Telecom

9ompetitor 9 ktel

#hat are yourusiness

ad%antagesL

*trong marketcommunication

effecti%edistriution

strategy

-etwork $pgradenetwork

N* marketing

#hat are yourcore

competenciesL

*trong marketcommunication

effecti%edistriution

strategy

-etwork $pgradenetwork

N* marketing

#here are youmaking mostmoneyL

&or airtime sale &or airtime sale &or airtime sale &or airtime sale

#hat are youdoing wellL

"ffecti%e lowest call rate

-etwork capacity 6owest call ratewith outgoing

onus

6owest call rate


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SWOT !om"arison Sheet

8

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9ompetit

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(:ramee

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grameen

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4000


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SWOT Comparison Sheet

Threats My Company Competitor 1

(GP)

Competitor 2

(Warid)

Competitor 3

(Ate!)

"#sta$!es to

o%er$ome&

'oer AP*

maret

A++ressi%e

$ompetitors&

GP ,an+!a!in Grameen

Phone

Grameen

Phone

-.$$ess/.!

$ompetitors&

GP ,an+!a!in Grameen

Phone

Grameen

Phone

0e+ati%e

e$onomi$

$ondition&

es es es es

Go%ernment

re+.!ation&

- es es es

Chan+in+

#.siness

$!imate&

- es es es

.!nera#i!ities

&

0o 0o 0o 0o


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SWOT Comparison Sheet

"pport.nities My Company Competitor A

(Grameen

Phone)

Competitor ,

(Warid

Te!e$om)

Competitor C

(Ate!)

0i$hes that

$ompetitors

are missin+&

0etor 'oer Ca!!

ate

0etor

Co%era+e

0etor

0e

te$hno!o+ies&

3G 3G 3G 3G

0e needs o/

$.stomers&

Wii Wii Wii Wii

1


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Product and Ser0ices

Bangladesh offers a numer of products and %alue added ser%ices to its %alued

suscriers. These attracti%e products and ser%ices are designed to cater to the

needs of the indi%idual suscriers. #e can di%ide all of these products into four

categories> these are'

• 8re'8aid

• 8ost'8aid

• Banglalink "nterprise

• Banglalink 9$

$nder these four categories there are se%eral classifications ased on the tariff plan

and usage.

Types 8ackages

8re'paid !esh!esh rang6adies first

8ost'paid 8ersonal package 18ersonal package 28ersonal call and control

Banglalink enterprise "nterprise corporate"nterprise *M""nterprise personal

Banglalink 9$ 9$ *td.9$ call and control

Pre;Paid Products:

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8repaid is a system where suscriers pay for their phone calls in ad%ance. 8repaid

gi%es suscrier the freedom to use their moile within their udget. t is an e+cellent

way to speak your language.

The products Banglalink 8repaid has network moility feature which helps a

suscrier to mo%e around where Banglalink has its co%erage.

Ladies( first $/MIL? *- =umbers from L;L+

12 am to 4 pm Tk. 0.24@min

4 pm to 12 am Tk. 0.=7@min

SMS

Banglalink to Banglalink Tk. 0.;7@*M*

Banglalink to others Tk. 1.00@*M*

6adies firstA 515

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1) O=7 second "ulse;first time e%er in prepaid connections in Bangladesh P

anglalink has introduced 1 second pulse for the first time in the prepaid market

through ladies firstA ll ladies firstA 9ustomers will enEoy this new enefit.

2) Late night rate until &am: Dnly anglalink ladies first offer suscriers late night

rate facility e%en during the peak time. The rate is a 0.77 paisa@min'anglalink to

anglalink.


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• 9onditions apply

• Nat pplicale

9ustomers of this package will enEoy discount in the following categories of shops for

any purchases madeP

• Beauty parlor *aloon

• Bouti/ue shop

• Music *tore

• !epartmental shop@cosmetics shop

• Music *tore

• &ast &ood estaurant

•

estaurant• &ashion Couse

• *hopping Mall

• &lower :ift *hop

• Cotel

• Ieweler *hop

• 1 second pulse after 20 second

• To recharge account and for alance in/uiryP

) 9all 12< (free of charge) and follow the direction or

) To recharge account through *M* press Q12


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1) 6owest peak rate to call to any moile P Banglalink desh offers customers the

lowest peak rate to call to any moile at Tk. 1.;4@min

2) 6ate night rate from 12 am'7amP Dnly Banglalink desh offers customers late

night rate facility during peak hours. Banglalink desh late night rate is

applicale from 12 am'7am. The rate isa 24 paisa@min'Banglalink to Banglalink

# 77 paisa@min'from Banglalink to any other operator

3) Bonus on ncomingP Banglalink prepaid desh customers (m2m and standard)

now get onus talk'time for outgoing calls upon recei%ing class. customer

will recei%e 20G free talk'time in a month ased upon the calls recei%ed in the

pre%ious month e+cept anglalink.

4) 6ifetime NalidityP lifetime %alidity on prepaid account gi%es a customer the

enefit of recei%ing incoming calls and staying connected fore%er. To get

lifetime %alidity a customer,s has to recharge his@her pre'paid account with aminimum amount of taka 10@'or ao%e (%ia scratch card or i'top up).

5) "*! facilityP *uscriers can call to 44 countries from their desh (e%en from

M2M) connections at economy rateA

/ ne1 desh connection 1ill cost:

Q Taka ;40 (m2m)'with taka 20 &"" talk time

Q Taka ;77 (standard with T-T incoming &"")'with taka 20 &"" talk time

$or eDisting ladies first9bonus "re"aid customers.....

6adies first and onus prepaid customers can also migrate to desh for free y

sending an *M* !* to 210. There is no cost for 1st migrating to desh ut onus

customers will not e ale to migrate ack.

2esh Rang Tariff:

Aanglalink desh rangA tariff "lan

Outgoing

& am to %4 am

Banglalink to Banglalink Tk. 0.77@min

Banglalink to Dthers Tk. 1.=4@min

Off Peak *%4 am to & am+

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Banglalink to Banglalink 24 paisa@min

Banglalink to other moiles 77 paisa@min

$RI7=2S > $/MIL? *- =umbers from L;L+

Banglalink to Banglalink Tk. 0.24@min

SMS

Banglalink to Banglalink Tk. 0.24@*M*

Banglalink to Dthers Tk. 0.40@*M*

50 sec. pulse will apply for &n& calls late night call and all calls to other operators numers at all times. &or any other call at other time


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Banglalink constantly stri%es to pro%ide people the est ser%ice at the mostaffordale price. 8eople can now choose the appropriate package ased on people,sneed and usage pattern.

enefits of "ersonal "ackages:

• *tandard postpaid package with TT 6ocal -#! *! and "'*!connecti%ity)

• 1 second pulse

• 6owest call charges• &n& to any moile operator with a %ery low tariff

• $p to 14G monthly loyalty discount on airtime

• ll incoming calls including TT are asolutely &""

• "conomy *! call charges (012) to 44 countries

• 6ow monthly line rent• Cassle free ill payment through i, top up

• :8* and MM* ser%ice• nternational oaming

• nternational *M*

• Tk. 100 &"" talk'time for new connections

• *mart ser%ices like mar Tune 8ower Menu Missed 9all lert -ews lert Sellow 8ages and many more

• Basic :*M ser%ices (call conferencing call waiting caller ! calldi%ert@forward call hold call arring etc)

9ustomer can choose from the following three personal packages ased on their

need and usage patternP

Personal "ackage %

pro%ides you the lowest call rates #ai%er of monthly fee if usage is greater than Tk.400 (without NT) duplicating moile numer facility $p to 2 supplementary connections with attracti%e group talk rate 10 MB :8* Miss call alert &"" (monthly) 20G onus on incoming $p to 14 G loyalty discount

Personal "ackage 4

Q Minimum monthly ill of Tk. 1.000 at the lowest call rates

Q Monthly 140 &"" -ews *M*

Q &"" itemied ill

Q &"" golden numer upon a%ailaility

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Q !uplicating moile numer facility

Personal call > control

Q $sage through recharging scratch card@i, top up

Q 6owest monthly fees

Q Celps keep usage within control

!allcharges:

Q Minimum monthly ill has to e Tk. 1000 e+cluding NT. t the ill is not Tk. 1000then the difference amount will e charged as monthly line rent. &or e+istingBanglalink postpaid 500 and 1200 package customers minimum monthly ill will eapplicale from May 200 ills.

QQ 8romotional offer for B6 to B6 calls including B6 to B6 &n& calls from 00P00 hrs to7P00 hrs.

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Q &n& numer can e any moile numer of B6 or other moile operators

Q ll prices are in B!T and NT e+clusi%e

Q 9onditions apply

Personal "ackage customersQ can enEoy loyalty discount e%ery month ased onmonthly usage and length of stay with Banglalink. This means the longer suscriersha%e een with Banglalink the higher the discount they will recei%e.

The loyalty discount is our way to e+pressing gratitude toward suscriers ecausetheir loyalty means that Banglalink is their preferred and trusted moile operator.

This offer will e applicale for all e+isting and new customers from May 200= andwill e a%ailale until further notice.

*uscriers can enEoy the discount e%ery month as mentioned in the following TaleP

Length of stay 1ith banglalink

Monthly outgoing 0oice calls ("+cluding TT charge oaming NT)

Tk. ;01'1400 Tk. 1401'


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Pricing Strategies

8eople from different areas contriute their e+pertise to set the most strategic pricefor a product.

• ccountants financial managers and sales representati%es pro%ide rele%antcost data.

• !esigners engineers contriute important data as well.

8rices are determined y the asic waysP

•

By applying the concepts of supply and demand.• 9ompleting cost'oriented analyses.

"conomic theory assumes that a market price will e set at the point where theamount demanded and the amounts supplied are e/ual.

• !ost based Pricing: 8ractice of adding a percentage of specific amounts tothe ase cost of a product to co%er o%erhead costs and generate profits.

9ost ased 8ricing totals all costs associated with offering a product in the marketincluding research and de%elopment production transportation and marketinge+penses.

reake0en /nalysis: 8ricing techni/ue used for determining minimum sales %olumea product must generate at a certain price le%el to co%er all costs.

• n%ol%es different types of costs and total re%enues.

• Celps to determine profits@losses that would result from se%eral proposedprices.

• 9alculations of re/uired sales can e compared y the Marketers.• The comparison can identify the est price one that may e+ceed the

reake%en point and earn profits for the company.

• Banglalink Eoined the cell'phone Market a year ago. ccording to their plansand strategiesP they ha%e a goal of reaching the reake%en point within a fewyears.

• l the present they are concentrating on increasing and holding theirsuscriers which may cause a slow rate of progress in reaching thereake%en point.

/lternati0e Pricing Strategies

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• Skimming Pricing: The setting of an intentionally high price relati%e to theprices of completing products. t may outline the firm,s high'end product fromthose of competitors as well. *kimming pricing is often used to reco%er acompany,s product de%elopment costs efore competitors are introduced inthe market.

mong the huge market of prepaid users the $pper'9lass 8ost 8aid competescompletely in different consumers.

This certain type of offer differentiates itself relati%e to the other competing productsof the same company,s market.

• Penetration Pricing: *etting low prices in products and ser%ices as a maEormarketing weapon. This strategy helps marketers to increase the productprices after the product earns certain recognition among the consumers.

Banglalink introduced a 8ackage offering a asic Candset as well as a talk'time of100tk at the company,s %ery starting where the total cost of the package was lessthe market price of the handset alone. The offer helped the company to make a %eryearly impact among the consumers ecause of its uni/ue offer.

• 70eryday Lo1 Pricing and 2iscount Pricing: *trategy de%oted to maintaincontinuous low prices rather short'term price'cuttings.

• s the moile phone companies run their prices on rather different ranges oftime'slots Banglalink offers least in a%erage pricing of their ser%icescompared to the other ri%al companies. The company is also continuing its

efforts on reducing prices of their current offers until a steady low pricedstrategy is achie%ed.

• !om"etiti0e Pricing: To reduce the emphasis on price competition ymatching other firm,s prices and concentrating their own marketing efforts onthe product distriution and promotional elements.

Banglalink is among the first moile companies to offer a different taste in telephonecon%ersation y introducing %oice conferencing.

Banglalink identified the deficit of a ser%ice that is neither too cheap not tooe+pensi%e and in%ocated a usiness offer named 9all 9ontrol *tandard. Thisparticular package includes many of the offers from the actual post'paid package toattract the customers ut at a more standard price. nother attraction of this offer isthat the *M card ne%er deacti%ates e%en if it,s not used for a long time.

Price;Euality Relationshi"s:

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• The consumer,s perception of product /uality is closely related to the price ofthe item. That is a product may e e+pected to e %aluale if its price islaeled in a higher price.

• "+treme prices are considered as too e+pensi%e or too cheap.

Dne of the up'coming products of Banglalink> will e offering moile'to'moile cellphone connections at only fifty taka per *M card. The company has already plannedto pay a percentage on those connections and also aware of making the offer short'termed.

• 9ertain priorities of the consumers.

Banglalink has taken initiati%es for de%eloping the ideas of consumers to prefer theircompany o%er their ri%als y repetiti%e ad%ertisements

• Odd "ricing: The strategy of setting prices in different ways for gi%ing ageneral idea of the price to e less> where the price of the product may notactually e so.

Banglalink uses pricing charts in half minute pulse in most ads where the generalidea of pulse still remains in minutes.

mong many of the prices set y this particular company odd pricing can e foundfrom te+t messaging prices to call charges.

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2istribution > the !hannel of 2istribution:

2istribution:

!istriution is one of the four elements of marketing mi+. n organiation or set of

organiations in%ol%ed in the process of making a product or ser%ice a%ailale for

use or consumption y a consumer or usiness user.

!hannels:

numer of alternate channels of distriution may e a%ailaleP

• *elling direct such as %ia mail order nternet and telephone sales• gent who typically sells direct on ehalf of the producer

• !istriutor (also called wholesaler) who sells to retailers• etailer (also called dealer or reseller ) who sells to end customers• d%ertisement typically used for consumption goods

!istriution channels may not e restricted to physical products alone. They may e

Eust as important for mo%ing a ser%ice from producer to consumer in certain sectors

since oth direct and indirect channels may e used. Cotels for e+ample may sell

their ser%ices (typically rooms) directly or through tra%el agents tour operatorsairlines tourist oards centralied reser%ation systems etc.

There ha%e also een some inno%ations in the distriution of ser%ices. &or e+ample

there has een an increase in franchising and in rental ser%ices ' the latter offering

anything from tele%isions through tools. There has also een some e%idence of

ser%ice integration with ser%ices linking together particularly in the tra%el and

tourism sectors. &or e+ample links now e+ist etween airlines hotels and car rental

ser%ices. n addition there has een a significant increase in retail outlets for theser%ice sector. Dutlets such as estate agencies and uilding society offices are

crowding out traditional grocers from maEor shopping areas.

!hannel members:

24

http://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Dealerhttp://en.wikipedia.org/wiki/Resellerhttp://en.wikipedia.org/wiki/Franchisinghttp://en.wikipedia.org/wiki/Marketing_mixhttp://en.wikipedia.org/wiki/Dealerhttp://en.wikipedia.org/wiki/Resellerhttp://en.wikipedia.org/wiki/Franchising


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!istriution channels can thus ha%e a numer of le%els. Kotler defined the simplest

le%el that a direct contact with no intermediaries in%ol%ed as the ero'le%el

channel.The ne+t le%el the one'le%el channel features Eust one intermediary> in

consumer goods a retailer for industrial goods a distriutor. n small markets (such

as small countries) it is practical to reach the whole market using Eust one' and ero'le%el channels.

n large markets (such as larger countries) a second le%el a wholesaler for e+ample

is now mainly used to e+tend distriution to the large numer of small neighorhood

retailers. n Iapan the chain of distriution is often comple+ and further le%els are

used e%en for the simplest of consumer goods. n Bangladesh Telecom Dperators

are using different 9hains of !istriution especially second le%el. n T and Telecom

industry le%els are named FtiersF. one tier channel means that %endors T product

manufacturers (or software pulishers) work directly with the dealers. one tier @ two

tier channel means that %endors work directly with dealers and with distriutors whosell to dealers. But the most important is the distriutor or wholesaler.

The Internal market:

Many of the marketing principles and techni/ues which are applied to the e+ternal

customers of an organiation can e Eust as effecti%ely applied to each susidiarys

or each departments internal customers.

n some parts of certain organiations this may in fact e formalied as goods are

transferred etween separate parts of the organiation at a Utransfer price. To all

intents and purposes with the possile e+ception of the pricing mechanism itself

this process can and should e %iewed as a normal uyer'seller relationship. The

fact that this is a capti%e market resulting in a Umonopoly price should not

discourage the participants from employing marketing techni/ues.

6ess o%ious ut Eust as practical is the use of Umarketing y ser%ice and

administrati%e departments> to optimie their contriution to their Ucustomers (the

rest of the organiation in general and those parts of it which deal directly with them

in particular). n all of this the lessons of the non'profit organiations in dealing with

their clients offer a %ery useful parallel.

!hannel 2ecisions:

• 9hannel strategy

• 8roduct (or ser%ice)VW9ostVW9onsumer location

Managerial !oncerns:

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The channel decision is %ery important. n theory at least there is a form of trade'offP

the cost of using intermediaries to achie%e wider distriution is supposedly lower.

ndeed most consumer goods manufacturers could ne%er Eustify the cost of selling

direct to their consumers e+cept y mail order. Many suppliers seem to assume that

once their product has een sold into the channel into the eginning of thedistriution chain their Eo is finished. Set that distriution chain is merely assuming

a part of the suppliers responsiility> and if he has any aspirations to e market'

oriented his Eo should really e e+tended to managing all the processes in%ol%ed in

that chain until the product or ser%ice arri%es with the end'user. This may in%ol%e a

numer of decisions on the part of the supplierP

• 9hannel memership

• 9hannel moti%ation

• Monitoring and managing channels

!hannel membershi":

1. ntensi%e distriution ' #here the maEority of resellers stock the product (withcon%enience products for e+ample and particularly the rand leaders inconsumer goods markets) price competition may e e%ident.

2. *electi%e distriution ' This is the normal pattern (in oth consumer andindustrial markets) where suitale resellers stock the product.

3 "+clusi%e distriution ' Dnly specially selected resellers or authoried dealers (typically only one per geographical area) are allowed to sell the product.

!hannel moti0ation:

t is difficult enough to moti%ate direct employees to pro%ide the necessary sales and

ser%ice support. Moti%ating the owners and employees of the independent

organiations in a distriution chain re/uires e%en greater effort. There are many

de%ices for achie%ing such moti%ation. 8erhaps the most usual is Uincenti%eP the

supplier offers a etter margin to tempt the owners in the channel to push theproduct rather than its competitors> or a competition is offered to the distriutors

sales personnel so that they are tempted to push the product.

Monitoring and managing channels:

n much the same way that the organiations own sales and distriution acti%ities

need to e monitored and managed so will those of the distriution chain.

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n practice many organiations use a mi+ of different channels> in particular they

may complement a direct sales force calling on the larger accounts with agents

co%ering the smaller customers and prospects.

2istribution Management System:

/bout 2MS /""lication:

!istriution Management *ystem is specifically de%eloped for the company which

has high %olume of sales with wide distriution network. This application keep track

of all sales which happens either through depot channel or through any other mode

e%en it keep a track of all in%entory of your dealers or depot and respecti%e other

details which are normally re/uired y management for day to day reporting.

$eatures:

The complete application is de%eloped in modules with %arious le%el of access

control and the est part of it is that the reports can e seen y management or

concerned person from anywhere anytime

Re"orts:

The types of reports which are generated y this application areP

1. *ales *tatus

• ll !ealers@ ll 9hannels

• *pecific !ealers@ 9hannels.

• *pecific !ay

• ange of !ay@Mont2. 8ayment *tatus

• ll !ealers@ ll 9hannels

• *pecific !ealers@ 9hannels.

• 9ommission :eneration.• Dutstanding

• ange of !ay@Mont


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Market dominance and 9ompetiti%e ad%antages are the measure of the strength of a

rand product ser%ice or firm relati%e to competiti%e offerings. There is often a

geographic element to the competiti%e landscape. n defining market dominance you

must see to what e+tent a product rand or firm controls a product category in a

gi%en geographic area.There are se%eral ways of calculating market dominance. The most direct is market

share. This is the percentage of the total market ser%iced y a firm or rand.

declining scale of market shares is common in most industriesP that is if the industry

leader has say 40G share the ne+t largest might ha%e 24G share the ne+t 12G

share the ne+t 5G share and all remaining firms comined might ha%e =G share.

Market share is not a perfect pro+y of market dominance. The influences of

customers suppliers competitors in related industries and go%ernment regulations

must e taken into account. lthough there are no hard and fast rules go%erning the

relationship etween market share and market dominance the following are general

criteriaP

• company rand product or ser%ice that has a comined market sharee+ceeding 50G most proaly has market power and market dominance.

• market share of o%er


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distriutor sold to market and they will get it till his distriution will run for the

company. Banglalink also pro%ides distriution operating cost for the distriutor for

running their usiness. The operating cost has two parts one is fi+ed 9ommission for

the !istriution mangers salary rent of house and other distriution cost. The other

portion is Nariale cost for the salary of the etail sales officer.

6ey $ocusing "oints of anglalink distribution System:

/ct as in est usiness Partner:

Banglalink is the first cell company who focuses on the route le%el distriution

process as followed y the &M9: companies. This distriution system enales the

wide open trade relationship to act as a etter usiness 8artner. n this concept now

Banglalink has almost 40 thousand retail outlets across the Bangladesh instead of

the "+clusi%e outlet of only 2= outlets in 2004. &or the route le%el distriution

penetration and impro%ing etter usiness relationship there is no other option to go

to each and e%ery outlet and reach our product. n this process Banglalink introduce

!istrict distriution concept from pril 2005.

2istribution !ost Sharing 1ith 2istributors:

n Banglalink distriution Model 9ompany are gi%ing distriutors operating cost. This

cost includes distriution mangers salary 9ommission disurser salary distriution

house rent and *D salary. Banglalink not only ensure distriutor commission ut

also gi%e commission to trade for e%ery single *M are acti%ated and used. n the

trade Banglalink is gi%ing Tk 100 to the retailers for e%ery single *M uses.

9ommission is the main profit for the retailers to do *M usiness. "%ery month

Banglalink gi%es commission for the retailers through the distriutors. n Banglalink

the Main product for the company are oth *M and reload. The reload are the mainde%ice for gaining the re%enue for the company. *o through the distriutors

Banglalink distriute the reload *M to the retailers and that,s the main Eo for the

sales team to penetrate the products to rural $ran and semi uran retailers.

Promotion and Trade Marketing su""ort:

2


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n order to sell the product or to make it aware of the consumer le%el and so as in

trade le%el different trade promotion consumer promotion and trade marketing are

offering from Banglalink.

Trade Promotion:

Trade promotion is asically the trade offer which is gi%en to trade as of trade

commission in addition to the regular commission. :enerally trade commissions are

2 types, upfront commission and usage commission. n addition which is gi%en to

trade is called trade promotion. *ome trade promotions of Banglalink are Boishaki

offer ,0= Boshonto offer ,0 and May onus ,0.

!onsumer Promotion:

9onsumer promotion are designed for the consumer that is called package such as

night ird that is from 12 a.m. to 7 a.m. any Banglalink user can call to any

Banglalink no for 24 paisa minute and from 7am to ;pm Banglalink to Banglalink 57

paisa.


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n order to impro%e oursel%es we need regular re%iew of our responsiility or work.

Dnly the regular monitoring and re%iew can put a positi%e difference in your work.

Banglalink is not making different than that e%ery /uarter we arrange a /uarterly

usiness re%iew to discuss aout the last < months usiness and past performance

&laws and opportunities. t,s an open discussion in which distriutors are in%ol%ed to

share their e+perience in doing usiness and form the company end we gi%e the way

forward to the further usiness plans and procedure. *o /uarterly usiness re%iew is

an important segment where the important usiness decision is taken for the

de%elopment and pre plan for the net take out of the usiness. t has helped the

distriutor how to grow further in his one and what they will ser%e according to the

companies plan.

2istribution Management System *anglalink 2istribution 2ata Soft1are+:

!istriution management system is the data software of Banglalink where all the

trade memers, details information is uploaded for the tracking of the usiness. n

!M* all the related data of e%eryday usiness is recoded such as how many *M a

particular retail outlet is taking. t has the details of that particular outlet such asretailer,s name ddress regular dealings of *M and the main parts of that !M* are

regular acti%ation and trade commission generation. The other part of the distriution

management system is that *& sumission in ecause each e%ery single

acti%ation re/uires a fulfillment of *& (*uscrier,s pplication &orm).

Banglalink is the only company in Telco industry and &M9: industry who sharing the

distriution cost with the distriutor for doing the usiness.

Problems > Pros"ects of the 2istribution System of anglalink:

Banglalink is %ery keen kin to impro%e its distriution system. That,s why they are

doing %ery hard to remo%e all the weak points from the distriution model. There are

some asic prolems in Banglalink !istriution Management *ystem.

usiness Partner:

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n "+clusi%ity model Banglalink do usiness only with 4 -ational distriutor and they

controlled 2= outlets all across the country. That why the trade relationship was not

in%ol%ed directly. But now in !istrict distriution model Banglalink is directly in%ol%ed

to the trade le%el around of 40000 outlets with their 10< distriutors ut the prolem

is they need to impro%e the ser%ice le%el such as effecti%e usiness relationship

more information dispatching to trade le%el in an effecti%e way. s usiness partner

Banglalink is trying gi%e out their est with their skilled sales force and a planned

distriution model. The district distriutor concept enales the road way to

communicate more and more to trade. Behind the distriution model the maEor

prolems are as Banglalink only operate 40000 outlets there is a lots of opportunity

in the markets as 400000 outlets uni%erse in the market. -ow days moile *M is not

the posh product rather now it goes a useful element for all types of people. &or that

non classification product pattern now it needs to penetrate hugely in semi uran and

rural le%el. *o the challenge of this distriution model is that to make direct contact

with the retailers with keeping a modest relationship and to capture as much as the

uni%erse.

!ost Sharing 1ith the 2istribution:

n order to dri%e a distriution lots of cost are in%ol%ed they are cost of manpower

working capital caring cost of the product distriution cost in the market. n those so

many costs Banglalink support their distriutors to gi%e them the partial distriution

cost that is the *D salary distriution manager salary 9omputer operator salary

etc. &or this cost sharing e%ery distriutor is getting at least Tk. 50000.00 per month.

But from the sales turno%er and geographic co%erage %iew point small distriutors

are enEoying huge profitaility and it is %ery much positi%e in their D ut for large

distriutors the phenomenon is re%erse as their manpower re/uirement andgeographical co%erage is more than the smaller distriutors ut oth of them are

getting the same amount of money as distriution cost.

nother prolem is that with the cost sharing tendency often signals to the

distriutors that they only want to e strict to the gi%en cost rather e+pense more for

gaining more re%enue. !istriutors are reluctant to spend more in this issue where a

32


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it of e+tra e+penditure in the distriution helps they earn more re%enue not only for

the company ut also their own profitaility and eturn on n%estment (D).

Promotion and Trade Marketing:

n case of gi%ing trade promotion and in trade marketing acti%ities Banglalink has a

enchmark to e the est among the other moile operators. egular trade

promotion like Boishakhi offer Boshonto offer and May onus offer has clicked

hugely that,s why in 200= Banglalink has ac/uired ;< lack of customer ase which is

the 2nd highest ac/uisition in 200= and in 200 till august Banglalink is aout to hit

the 10 million customer ase. That,s all happen for gi%ing the trade the continuous

lucrati%e offers to get more usiness to the retailer end. s the trade le%el is only

path to get the customers so the trade is the highly focused area to get usiness

from there. But the main prolem in that sector is the continuous and consecuti%e

trade offer sometimes gets the monotony in the trade and it will also increase the

whole sale tendency for the retailers and it,s a huge ostacle for the distriution

e+cellence. *o to reduce the tendency of the whole sale and to stack of the sales

trade offer need to gi%e a certain period of time like one month rather gi%ing three

months at single stretch. The other part is the trade marketing where a numer of

resources are used to ensure product campaign %isiility and different acti%ation

program. The main constraint in this regard is that the resources shortage which

sometimes affects our trade priority usiness relation and ultimately re%enue

generation.

Euarterly usiness Re0ie1:

Xuarterly usiness re%iew is the re%iew program that occurs for the /uarterly

usiness plan implementation and the performance e%aluation for the last < months.

ts an open discussion for the distriutors to show their performance what they are

doing as well as where the company,s usiness go on in terms of distriutions

e+cellence sales target achie%ement re%enue collection trade loyalty. Basically

here there is no prolem ut the inclusion should e the re/uirement of such

program for the trade le%el such trade meet organie to alert the retailers or to gi%e

the feel of usiness and to understand them their own standing of usiness and to

33


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educate them aout the new plan of distriution and to show them the path of

profitaility. *o at least one trade meet is re/uired for the e%ery /uarter for the retail

le%el as well.

2istribution Management System */=L/LI=6 2istribution 2ata Soft1are+:

!M* is the most important data software for the Banglalink distriution system. &ull

distriution system is run y the !M*. n the !M* the total usiness transected

outlets details are there which we called the registered outlets. !M* takes part

asically when the *M is sold to distriutors from the company and the sold *M is

entered in the !M* first from there it goes to those retailers at the time the *M code

is recorded in the name of the retailers. Thus e%ery single sold *M no. and serial no.

is recorded in the !M* which ensure the retailers commission when those sold *M

are acti%ated. *o to ensure the commission for the retailers !M* is the only solution

for the retailers. *o the accurate inputs of !M* data is the main Eo to ensure the

retail commission and of course the trade loyalties. f a single mistake is arises then

the retailers will not get the commission which may reak the usiness relationship

with Banglalink and makes an issue of trade dissatisfaction towards the company.

*o in order to reduce the mistakes and inaccuracy from the !M* the re/uirement is

the close oser%ation and monitoring to uild the strong trade loyalty through

ensuring commission to the retailers.

anglalink 2istributors:

!haka " nternational :opalgonE 0171


35/42

8allai.* Telecom KishoregonE 0171


36/42

Techno "nterprise -oakhail 01711'4;0;0;

!alia *uper Market Karimpuroad -oakhali.

-oorhan Telecom 9omilla 01711'220


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M K line Khulna'1 01711'0=000=

Khulna shopping comple+Khulan

M 6ink Khulna'1 01711'0=000=

Khulna shopping comple+Khulna

Khulna nfotech Khulna'2 01712'

21====

;


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rand. f se%eral rands are in the market they are likely to position throughout the

space and show real differences to match consumer preference.

Ste"s in Segmentation "rocess:

Needs based segmentation: They are trying to sol%e customers, needs and wants.

*ome times they sol%e particular prolem of the customers.

Segment identification: $ran people,s needs are different from rural people. They

are identifying customer,s lifestyles and usages eha%ioral. Their one of the popular

segmented product is lades first.

Segment attractiveness: Their o%erall market share and market growth rate is

high. Their desh package captures the normal users and *M" package capture the

usiness people.

Segment profitability: Their profit rate is %ery high. #hen they introduce the desh

package their profit increased y %ery high rate. They make profit y indi%idual

segment.

Segment positioning: They offers %ery attracti%e package for customers gi%e them

onus and e+tra other facilities. They are in second position in this industry.

Marketing-Mix strategy: Their product price and facilities %aries from package to

package. They introduced different product and different prices and differentpromotion acti%ities in different place.

7ffecti0e Segmentation:

Measurable: The sie of the market is ig which can e measured. -ow the callrate of Banglalink is lower than the competitor. *o purchasing power is high which

also can e measured.

Substantial: The main profitale segment is post'paid and Business "nterprise for

Banglalink. nother large profitale segment is pre'paid. !esh ang is the leader of

pre'paid. This segment is for youth and also for general people.

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Accessible: Banglalink has strong distriution channel which can e effecti%ely

reached to the customers. Banglalink also has customer care center all o%er the

country to ser%e the customer in their need.

Differentiable: Banglalink recent slogan is Dnu%utir -etwork3 which differentiated

their ser%ice from other network also offered .24 paisa first in Bangladesh. Banglalinkis the lowest call rate operator than the other operator which is easily differentiale.

Actionable: Banglalink is the first operator that introduced ser%es their customer

within 10 min in their customer care center to pro%ide the etter ser%ice.

Promotion

/d0ertising media:

Banglalink ecame a leader in terms of its ad%ertising /uality and setting %ery high

standards for competition and others. To campaign their product most effecti%ely.

3


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anglalink uses comination of different media to reach the highest percentage of

the customers the comination would include P

• Print media

• Tele0ision

Print media:

t is the hait of our people to go through some kind of newspapers or magaines

and Banglalink,s eye catching newspaper ads has attracted a lot of customers for the

company

Tele0ision:

The corporate TN commercial of din odol3 ased on the theme making a

difference in people,s lo%es3. touched e%eryone throughout the country and was

adEudged the est TN9 of the year according to the leading dailies of the country like

8rothom lo and -ew ge. This TN 9ommercial has ecome a matter of national

pride for Bangladesh as it has een nominated for the est TN d%ertisement of the

year with ; other international tele%ision commercials at the :*M ward 200=.

:*M ward is considered to e the Dscar of moile industry.

illboards:

Billoards are the cheapest and easiest way to catch the attention of the mo%ingpeople of the city. The illoards of Banglalink are hung eside the usiest of roads

and streets of the city. #here people tra%el fre/uently such as :ulshan Banani

!hanmondi uttara etc.

Transit /d0ertising:

Dne of the most popular ways of ad%ertising today is transit ad%ertising which are

the ads on ody of the ig uses as maEority of the people of the country uses them

for tra%eling.

#ealth link:

They pro%ide 2; hours health link ser%ice or telemedicine for Banglalink customers

y dialing =7.

Other Promotional /cti0ities:

4


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Banglalink continues to play an acti%e role in the area of corporate social

responsiility. Banglalink has gi%en !haka nternational irport'the gateway of

Bangladesh a completely new look. 8ro%ision of high /uality passenger trolleys

phone ooths emergency charging station and eautification of the premises is an

e+emplary initiati%e which no other multinational has taken. Banglalink alsocontriuted to an important tiger conser%ation proEect in the *undarans and

continues to support the 9o+,s aar each cleaning program.

!onclusion

Banglalink is one of the largest foreign director in%estments in Bangladesh. The

company after its inception in &eruary 2004 has grown rapidly into the leading

moile phone ser%ice of the country.

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Banglalink operates in a %ery fast growing and increasingly competiti%e in the

market. The decisions made y the company at this stage are crucial in securing its

future position as the leading moile phone ser%ice pro%ider in the country.

The company uses a set discount rate ased on the weighted a%erage cost of capital

and adEusts it y adding risk premiums to suit different risk characteristics of the

proEects. There are set guidelines for categoriing proEects ased on their risk

profiles. The timeframe they use is asically ased on go%ernment regulations on the

estimated lifespan of the e/uipments and infrastructure. The cash flow is estimated

ased on input from the different di%isions regarding the profitaility and market

potential of the proEect. *ensiti%ity analysis is conducted to e%aluate the impact of

different %ariales on the proEects outcome.

52408444 banglalink final

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