Mkt 460 Project

8/3/2019 Mkt 460 Project

1/23

BANGLALINK

1 | P a g e

1.0About Us1.1Introduction

Orascom telecom Bangladesh limited ("Banglalink") is a 100% owned subsidiary of Orascom

telecom holding s.a.e., Egypt, ("oth") in Bangladesh. it was acquired by oth in 2004, and after a

complete overhaul and the deployment of a new Gsm network, its telecommunication services

were re-launched under the brand name Banglalink. When 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.

Banglalinks success was based on a simple mission: "bringing mobile telephony to the masses"

which was the cornerstone of its strategy. Banglalink changed the mobile phone status from

luxury to a necessity and brought mobile telephone to the general people of Bangladesh and

made a place in their hearts. The mobile phone has become the symbol for the positive change inBangladesh.

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 bodol".

"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.

Banglalink attained 1 million subscribers by December 2005 and 3 million subscribers in october

2006. in less than two years which is by December 2007, banglalink overtook Aktel to become

the second largest operator in Bangladesh with more than 7.1 million customers. Banglalink

currently has 14.22 million subscribers as of march 2010, representing a market share of 26%.

growth over the last years have been fuelled with innovative products and services targeting

different market segments, aggressive improvement of network quality and dedicated customer

care, creating an extensive distribution network across the country, and establishing a strong

brand that emotionally connected customers with banglalink.


2/23

BANGLALINK

2 | P a g e

1.2 Background

In Bangladesh, Banglalink aims to understand peoples' needs best and develop

appropriate communication services to improve peoples' life and make it simple. All our

work is aimed towards meeting our vision. All members of the Banglalink family are

highly passionate individuals, fully committed to achieving the vision that we have set

ourselves. Our customers' needs matter most to us- making their life simple and

improving it is all we want. To ensure our vision is achieved, we have set ourselves a few

values, we want to be

Straight Forward

Reliable

Innovative

Passionate

All the Banglalink family members have one thing in common- a passion to serve. We wantto go that extra mile, so that you can have the best possible service

investing in the future of Bangladesh. The biggest barrier today for people is the cost of

handsets. We will strive to lower the total cost of owning a mobile. We are here to help make

a difference in people's lives by providing affordable and reliable connectivity solutions. We

will strive to connect people and link their lives by listening to them and by understanding

their needs. We are here to help you speak your language.

1.3Incorporation of Banglalink

Orascom Telecom Holding purchased 100% of the shares of Sheba Telecom (Pvt.) Limited

(Sheba) in March 2005. OTH operates a GSM network in Bangladesh and provides a range of

prepaid and postpaid voice, data and multimedia telecommunications services. As of March 1,

2005, Banglalink served approximately one core subscribers. Banglalink estimates that it had

8.3% market share of total mobile subscribers in Bangladesh


3/23

BANGLALINK

3 | P a g e

1.4 Operating License

Banglalinks license is a nationwide 15-year GSM license that expires in November

2011. It was acquired for US$ 60 million and re-branded and launched its services under

Banglalink in March 2005.

2.0Situation Analysis:

Banglalink have started its first operation in Bangladesh in 2005. The products 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.

2.1 Market Summary

Banglalink possess good information about the market knows a great deal about the common

attributes of the most valued customer. Before launching its experienced and prompt sell and

marketing force observed the market carefully and better understood who is served, what is their

specific needs and the way to communicate with the customers need and demand.

2.1.1 TARGET CUSTOMER

Pre-paid package Banglalink desh- targeted towards the mass

Post- paid package banglalink post-paidtargeted towards the mass banglalink businesstargeted towards the corporate banglalink SME-targeted towards the small& medium entrepreanuer Banglalink PCO-targeted towards the phone booths business Banglalink Icon- targeted towards the customers who are capable of billing more than

Tk. 3500 per month
http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=103http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=104http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=106http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=106http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=104http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=103


4/23

BANGLALINK

4 | P a g e

2.1.2 Market Needs

Banglalink is providing a wide range of services for its valued customers. The Company seeks

following benefits that are important for its customers:

Quality Service: Banglalink is providing quality service to the employers. The customersdont like the network problem and slow networking system. Banglalink recruits high

professional employees and experts to make the network available for the customers. It is the

company which expands its network all over the country within the shortest period of time

after starting its operation. Banglalink is committed to its customer about the quality service.

Customer Service: Banglalink has both online and physical customer care service for itscustomers. 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 centersare 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.

Service at Low Price: Before Banglalink starts its operation the tariff was higher than anyother 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.

2.1.3 Market Trends

The telecom industry world over has grown and evolved at an incredible pace and has

considerably changed the way people interact. Although, fixed line is still the most penetrated

telecom segment; wireless or mobile segment has been the key contributor over the last decade,

offering a wide range of opportunities to provider and services to customers. Banglalink has set

up its network in many major cities and also in rural areas. Banglalink has come up with new

tracking device in the network and thus made it easier for many businesses to perform their work

efficiently. The shift of revenue from fixed to mobile and from voice to data is accelerating.

Driven by strong mobile and broadband penetration in emerging markets and substantialeconomic recovery in developed markets, global telecom industry is expected to see double digit

growth over the next four to five years.


5/23

BANGLALINK

5 | P a g e

2.1.4 Market Growth

Though the call rate tariff is reducing due to the heavy competition in the telecom market, the

market is widening day by day as the number of mobile users are increasing and there is a lot of

scope to develop this sector. Banglalink is the fastest growing telecom sector in banglalink.

Sheba Phone became Banglalink in 2005 when ORASCOM graphed the company. At the time

launching as the name of Banglalink there was only a few thousand customers but within the

three years its number of customers has raised more than 4 million. Banglalink is the second

largest telecom company operating in Bangladesh.

2.2 Market Analysis

2.2.1Comparing the external environment

BANGLALINKs product is placed at the growth stage of its life cycle. Knowing this position

will help to determine which strategy is to apply.

Market share of Banklalink is growing at a positive rate in total market. That means the overall

growth rate compare to overall market BANGLALINK is in the Growth Stage. From the

information provided thatBANGLALINK is in DOG situation. Companys 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 companyposition dictates the companys growth strategies

2.2.2 Business Strategy Typology (BST)

Prospectors- Prospector organizations face the entrepreneurial problem of locating andexploiting new product and market opportunities. These organizations thrive in changing

business environments that have an element of unpredictability, and succeed by constantly

examining the market in a quest for new opportunities. Moreover, prospector organizations

have broad product or service lines and often promote creativity over efficiency. Prospector

organizations face the operational problem of not being dependent on any one technology.

Consequently, prospector companies prioritize new product and service development and

innovation to meet new and changing customer needs and demands and to create newdemands. The administrative problem of these companies is how to coordinate diverse

business activities and promote innovation. Prospector organizations solve this problem by

being decentralized, employing generalists (not specialists), having few levels of

management, and encouraging collaboration among different departments and units.


6/23

BANGLALINK

6 | P a g e

Analyzer- Analyzer organizations share characteristics with prospector and defenderorganizations; thus, they face the entrepreneurial problem of how to maintain their shares in

existing markets and how to find and exploit new markets and product opportunities. These

organizations have the operational problem of maintaining the efficiency of established

products or services, while remaining flexible enough to pursue new business activities.

Consequently, they seek technical efficiency to maintain low costs, but they also emphasize

new product and service development to remain competitive when the market changes. The

administrative problem is how to manage both of these aspects. Like prospector

organizations, analyzer organizations cultivate collaboration among different departments

and units. Analyzers organizations are characterized by balancea balance between

defender and prospector organizations.

Defenders- Defender organizations face the entrepreneurial problem of how to maintain astable share of the market, and hence they function best in stable environments. A commonsolution to this problem is cost leadership, and so these organizations achieve success by

specializing in particular areas and using established and standardized technical processes to

maintain low costs. In addition, defender organizations tend to be vertically integrated in

order to achieve cost efficiency. Defender organizations face the administrative problem of

having to ensure efficiency, and thus they require centralization, formal procedures, and

discrete functions. Because their environments change slowly, defender organizations can

rely on long-term planning.

Reactor- Reactor organizations, as the name suggests, do not have a systematic strategy,design or structure. They are not prepared for changes they face in their businessenvironments. If a reactor organization has a defined strategy and structure, it is no longer

appropriate for the organization's environment. Their new product or service development

fluctuates in response to the way their managers perceive their environment. Reactor

organizations do not make long-term plans, because they see the environment as changing

too quickly for them to be of any use, and they possess unclear chains of command.

Byanalyzing all the business strategies, we found out that Banglalink acts as an Analyzers.

Banglalinkalso acts as a prospector by continuously innovating products and different services

like the new package of them known as the Banglalink icon package. In this package they are

targeting those elite people who has the capability of billing more than taka 3,500 every month.

On the other hand, like a defender they are defending their market share, by defending their call

rates like the other competitors in the competitive market.


7/23

BANGLALINK

7 | P a g e

2.2.3 Marketing Strategy Typology

Aggressive marketers- Aggressive marketers promote their products very forcefully. Theydo no concentrate on advertising. They offer high value product with premium price. Such

marketing strategy is followed by Grameen Phone as they as they are knowledgeable about

marketing and not afraid of spending.

Mass marketers- Mass marketing is a market coverage strategy in which a firm decides toignore market segment differences and go after the whole market with one offer. Banglalink

is an example for such marketing strategy.

Value marketers- The value of a product is the mental estimation that a consumer persistabout it in their mind. Thus the value marketers try to offer high value products but at low

price. City cell falls under this strategy. Such marketers market the value more than the price.

They promote the product in exclusive places.

Marketing minimizer- market minimizers are those who do not appreciate marketing at all.They rather consider it just to be an expense. Teletalks follows this marketing typology.

If we look carefully into the marketing strategies of Banglalink, we will notice that Banglalink is

being a mass marketer. They are marketing their services in a mass amount in every corner of

Bangladesh. They are visible throughout the year not only in televisions, but also in radios,

billboards and print mediums. They also sponsor certain events and also finance small shops. By

summing all their marketing strategys we can say that Banglalink is definitely a mass

marketers.

2.2.4 Product Life cycle

The product life cycle goes through multiple phases, involves many professional disciplines, and

requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a

product in the market with respect to business/commercial costs and sales measures. To say that

a product has a life cycle is to assert four things:

that products have a limited life, product sales pass through distinct stages, each posing different challenges, opportunities,

and problems to the seller,

profits rise and fall at different stages of product life cycle, and Products require different marketing, financial, manufacturing, purchasing, and human

resource strategies in each life cycle stage.


8/23

BANGLALINK

8 | P a g e

The four main stages of a product's life cycle and the accompanying characteristics are:

Stage Characteristics

1. Market

introduction stage

1. costs are very high2. slow sales volumes to start3. little or no competition4. demand has to be created5. customers have to be prompted to try the product6. makes no money at this stage

2. Growth stage

1. costs reduced due to economies of scale2. sales volume increases significantly3. profitability begins to rise4. public awareness increases5. competition begins to increase with a few new players in

establishing market

6. increased competition leads to price decreases

3. Maturity stage

1. costs are lowered as a result of production volumes increasingand experience curve effects

2. sales volume peaks and market saturation is reached3. increase in competitors entering the market4. prices tend to drop due to the proliferation of competing

products

5. brand differentiation and feature diversification is emphasized tomaintain or increase market share

6. Industrial profits go down

4. Saturation and

decline stage

1. costs become counter-optimal2. sales volume decline or stabilize3. prices, profitability diminish4. profit becomes more a challenge of production/distribution

efficiency than increased sales

The process of developing and maintaining a fit between an organizations goals and the

dynamic environment is the strategic planning.


9/23

BANGLALINK

9 | P a g e

Marketing strategy is the means by which a marketing goal is to be achieved under the

observation of the position of the product.

Today understanding customer is crucial, but it is not enough. Under the marketing concept,

companies gain competitive advantage by satisfying target consumer needs better than

competitors do. Thus, marketing strategies must consider not only the needs of target consumers,

but also the strategies of competitors.

To prepare a marketing strategy it is necessary to know the position of the product in its product

life cycle.

Comparing the external environment BANGLALINKs product is placed at the growth stage of

its life cycle. Knowing this position will help to determine which strategy is to apply.

Market share of BANGLALIN K is growing at a positive rate in total market. That means the

overall growth rate compare to overall market BANGLALINK is in the Growth Stage. From the

information provided that BANGLALINK is in DOG situation.

Companys 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 companys growth

strategies

2.2.5 SWOT

2.2.5.1 Analysis of Strengths:

Banglalinks all connections are ISD & EISD: Its a big strength of Banglalink. Its

the only SIM which has such a versatility of connections having ISD, Economy ISD servicealong with both incoming and outgoing connectivity with any of the land phones. This is not

seen to other providers. It gives a tremendous competitive advantage to the Banglalink

Bangladesh ltd over its respective competitors.

Banglalink is the only indigenous company using GSM service: Banglalink is the

only local organization which is providing GSM technology in this country. The other local

organization named pacific telecom is providing CDMA technology which is more expensive.

So Banglalink can take this advantage over its competitors.

It has also provided incoming facility up to lifetime: Banglalink have a strong

strength over its competitors incase of incoming facility. Banglalink present incoming

duration is up to lifetime.

From the very beginning it is providing free TNT incoming: Banglalink is the only

provider which is providing T&T incoming free from the very beginning. Whether

other operators providers providing such kind of facility just now.

Moreover its contribution to our economy can be notable: As a multinational


10/23

BANGLALINK

10 | P a g e

company Banglalink have a strong contribution in our national economy. Its one of

the high profit generating in Bangladesh.

Low cost provider: The most remarkable success of Banglalink is the slump in tariff

structure. It is the lowest cost provider in Bangladesh telecommunication market. As soon as

Banglalink announced its tariff the long lasting oligopoly between other private mobile providers

were shattered. Healthy competition came into the mobile market.

2.2.5.2Analysis of Weaknesses Lower number of human resource: The number of employee of Banglalink is too much lower

regarding its requirement. As a result the service quality and customer satisfaction go down.

Failed to identify difference between developed market and developing market: Banglalinkfailed to identify the difference between developed market and developing market. There

strategy making is not match with the current situation.

Weak management system: poor coordination among different functional department

of Banglalink as result service efficiency goes down.

The progress of development of network is far below from the subscriber expectation: the

expansion of network coverage is too much slow. People thought that Banglalink should use the

GSM network facilities; as a result Banglalink can cover the most of the area of Bangladesh.

2.2.5.3 Analysis of Opportunities

Banglalink can use the image of multinational organization: People want to better facility from

service industry. So Banglalink can use such kind of soft corner of consumers and promote the

service to them.

Introduction of new technology and services: Banglalink can implement new and consumer

oriented technology in this sector. Because people have inclination to new and modern

technology. Now a days people are ready to accept the new thing.

Expand the market in the rural area: Till now there is huge area is remain out of coveragewhere a huge number of target consumers are available. So Banglalink can bring that respective

area under coverage and catch those potential consumers.

Banglalink can use the experience of multinational one of the old and experience organization

in Bangladesh telecommunication sector. They have special experience about the consumer

behavior of Bangladesh. They know about the consumers need and want.


11/23

BANGLALINK

11 | P a g e

Banglalink can use soft switch network: The soft switch network separates the bearer and

control layers and a soft switch centric network can be built on different types of bearer networks

such as TDM, IP and ATM unlike, legacy network that depend on a single specific switching

technology. Based on strategic planning and the developmental phase, an operator can select

suitable bearer mode technologies for different phases, from the perspective of long term

sustainable development, the IP centered soft switch network defines the future. So Banglalink

can use this technology and practice competitive advantage over rivals.

2.2.5.4 Analysis of Threat

An upcoming mobile service provider named WARID TELECOM a concern of Dhabi group: At

present Bangladeshi mobile sector is almost saturated , after that a new company named WARID

is going to starts its operation in Bangladesh which going to become a big threats to Banglalink

and other operators. The invention of technology which is new modern and consumer oriented: Technology is

changing with day run. It changes the consumers demand pattern by offering different attractive

features. As a result consumer shifts from one technology to other technology, which might

create a big problem to Banglalink and others.

Another invisible threat is land phone operator: In Bangladesh land phone operator is expand

the market with day run. People are switch from mobile to land phone operators. As a result

ultimately the number of mobile user is decreasing and create problem to the mobile operators as

well as Banglalink.

2.3 COMPETITORS

Banglalink made a revelation in the telecommunication sector. City cell 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 were few. Banglalink made

the history by inviting Varity of services at a very cheaper rate.

GrameenPhone

AKTEL Banglalink

Teletalk

Warid Telecom


12/23

BANGLALINK

12 | P a g e

GarmeenPhone 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 leadera cost advantage leading to lower

prices or the ability to provide better value at premium price. It could include a strategy of

market challenger.

banglalinks competitor to challenge the market is GRAMEEN PHONE (GP) and their Strategicobjective is To receive an economic return on its investment

2.4Product offering

Package

Banglalink has got different type of customer oriented packages for the customers, Banglalink

mainly two types of packages. They are

Pre-paid Packages Post-paid Packages

Pre Paid Packages

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 control your

expenditure.

The products, Banglalink prepaid has network mobility feature which helps a subscriber to move

around where Banglalink has its coverage.

Key features of Banglalink pre-paid

no monthly subscription fee


13/23

BANGLALINK

13 | P a g e

lifetime validity for all the prepaid customers who recharged after february 23rd 2007 Banglalink advance: advance credit feature in case of low balance

Banglalink offers you the following prepaid products to suit your usage pattern:

Banglalink desh Banglalink desh ek rate Banglalink desh ekrate darun Banglalink desh rangdhanu Banglalink desh 7fnf

Documents needed to subscribe to a banglalink prepaid package

dully fill up new subscription agreement form/registration form 1 (one) copy of passport size photograph national id (photocopy of both side) required information of a referral person (name, phone no & national id number of the

referral person)

Banglalink prepaid connection includes a starter kit with SIM card. Documents you need to

preserve carefully for future reference:

subscription form (subscribers copy) money receipt starter kit pack with subscriber identification module (sim), personal identification

number (pin) and personal unblocking code (puk)

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.

Know your prepaid packages here

Key Feature of banglalink Pre-Paid

No monthly subscription fee

One country one rate

30 days extra incoming facility once the validity is over and then 90 days Banglalink is offering

you the following Prepaid products to suit your connectivity needs:
http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=78http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=79http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=80http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=81http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=121http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=121http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=81http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=80http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=79http://www.banglalinkgsm.com/docs.php?id=pre-paid&docs_id=78


14/23

BANGLALINK

14 | P a g e

Pre-Paid M2M

Connection price Tk.150 with Tk.120 free talk time

Mobile-to-Mobile incoming and outgoing.

No monthly fixed charges

Mobile-to-Mobile incoming free Pre-Paid Standard

Connection price Tk.199 with Tk.120 free talk time

Mobile-to-Mobile, T&T and ISD facilities.

No monthly fixed charges

BTTB incoming free

There are three prepaid packages for the customers

9 am - 5 pm 5 pm - 12 am12 am - 9am

call rate

banglalink to banglalink tk. 0.99/min tk. 1.25/min * tk. 0.45/min

banglalink to other mobile tk. 0.99/min tk. 1.45/min * tk. 0.99/min

fnf rate (3 fnf to any operator)

banglalink fnf number tk. 0.45/min

other operators fnf numbertk. 0.99/min

sms rate

banglalink to banglalink tk. 0.50/sms

banglalink to other mobile tk. 0.50/sms

* For every call, a tk 0.30 charge will be applicable only once

Post- Paid Package

At Banglalink, we understand that your needs and usage patterns are unique. This is why we

believe in giving you choices so you can pick what you need. rather than offering you the same

solution as everyone else, our Banglalink postpaid packages are tailored to serve your exactpurposes and give you the best value for money.

Banglalink offers three post-paid packages

Banglalink post-paid
http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=103http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=103


15/23

BANGLALINK

15 | P a g e

Banglalink business Banglalink sme Banglalink PCO Banglalink Icon

3.0 Marketing Strategy

3.1Mission

To deliver, innovative, customer focused products and to be the benchmark for customer service

excellence. Banglalink mission is to provide clear and smooth telecommunication to the

customers and make the banglalink services available to all part of Bangladesh.

3.2Marketing Objective

Maintain strong and positive growth. Achieve a steady increase in market penetration. Hold a strong market position within few years.

3.3Financial Objective

First identify the key performance issues for your organization from a financial perspective.

Then based on the key issues, identify performance targets and incorporate them into your

goal(s). Generally, financial goals will address overall profitability, return on investment, return

on equity, revenue growth, and overall financial strength of the company or some other pertinent

aspect of the organization's financial stature

.

3.4Target Market

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 widelyscattered, 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.
http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=104http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=106http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=106http://www.banglalinkgsm.com/docs.php?id=post-paid&docs_id=104


16/23

BANGLALINK

16 | P a g e

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.

3.4.1Market segmentation

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 coveringmost of the part of the area, still they left 3 more districts. There are government restriction for

the network coverage of those hill traces areas

3.4.2 Comment

Banglalinks network is divided into six divided into six zones according to the division orders:

Dhaka Zone, Chittagong Zone, Khulna Zone, Sylhet Zone, Barisal Zone, and Rajshahi Zone.

As the present time Banglalinks has 135 base stations all over the country and it covers 61

district towns including all six divisional headquarters. The work relating to core network up

gradation was completed. The capacity of two switches in Dhaka and Chittagong was further

enhanced. The switch and base station controller processor was upgraded. The microwave link

between Khulna and Chittagong over the coastal areas was also completed in a fastest way,

within 1 year. This microwave link formed a loop in the Banglalinks network, enabling

Banglalinks to provide a more secured service to its valued subscribers. Since launching its

services, Banglalinks continued to rapidly expand its network well beyond meeting the license

obligations. The Banglalinks service was launching in Chittagong in 2005, Khulna Sylhet and

Barisal in 2005. in the northern region if the country , which has been traditionally neglected in

terms of telecommunications development, Rajshahi city, Bogra, Nator, and Noagaon have also

been connected with Banglalinks network. It sets amilestone in setting up its network. After oneand half year of launching as BANGLALINK it has widen its network coverage. This is again a

great success in providing a smooth networking system over a very short period of time.

But now at this time Banglalink is emphasizing on demographic segmentation. Over All

Segmentation Middle income group 31% Service holders 17% Young People 44% Others 4%

House Wives 4%.


17/23

BANGLALINK

17 | P a g e

3.5 Marketing positioning

After the company has decided which market segment to enter with which product, it must

decide what positions it want to occupy a clear distinctive and desirable place relative to

competing products in the mind of target customers. The companys entire marketing program

should support the chosen positioning strategy.

Since if a product is perceived to be exactly like another product on the market,

consumers would have no reason to buy it, banglalink brings special features on the product as

well as significant various services that positioned the products in the target segments. Products

can be positioned with some positioning strategy. We find that banglalink has taken has taken

multi-various strategy to position its various product in the market.

It designed its products according to the usage occasion. Consumers can use banglalink

in specific occasions according to their need such as the international roaming gives theconsumers an opportunity to use their cellular phone in172 abroad countries. The products of

banglalink are available for certain classes of users

3.6Marketing Mix

Pri 3.6.1Pricing strategy

There are five heavy weight companies in the market and as a result banglalink has

to be very careful in setting the price of the packages.

Strategy for new packageWe know there are two strategies to set price. Market skimming that is setting price at the

highest level that accompany can set. And the penetration pricing that is setting the lowest price

for the new product. Banglalink follows thepenetration strategy penetration strategyto set the

price. Banglalink offers the lowest price in the market. Because of the market is very competitive

and the company has to hold the market share. On the other hand the consumers want the

cheaper rate. As a result the company selects the lowest price and become successful in this

regard. In 2002 it was a new cellular company and within a quick time it becomes the second

largest company because this is the cheapest among the six. Special strategy for pricing

Flexible pricingBanglalink offers flexible pricing for its different packages. It has segmented its

market according to its customer income level and sets the price according to the

target market. As ladies first is targeted for the women and prcing at 150 taka ahere


18/23

BANGLALINK

18 | P a g e

as the Enterprice is for the business men and the price rate is tk. 1000.

Old PricingBanglalink follows odd pricing for the package. Instead of even prcing it maintains

odd prcing like instead of tk. 200 it sets tk. 150.

Setting the price for the call charge and package price it always offer discounts.

Some discounts are

20% out going call free on the basis of the total incoming call.

Offer special discount for the ladies first users at selected outlets.

Tk.100 FREE talk-time for new Enterprise connections

All incoming calls including T&T are absolutely FREE

Up to 15% monthly loyalty discount on airtime

Free talk to any banglalink on every Friday and Saturday from 1 am to7 am but sorry to say this offer is not applicable for the recent time.

Unlimited lifetime for any amount of recharge. (at least Tk. 10)

Tk. 120 free for the every new connection.

Factors effecting priced determination Estimated Demand

Banglalink always estimate the demand of the consumers and sets price according to meet the

demand. When the new product come into the Market people often less likely to buy the product.

Competitive ReactionThe market is very competitive in deed and as a new company it has to compete with the five

potential companies. Setting the price BL always sincere about the competitors action. When

Grammen offered the lowest out going call rate it also reduced the call rates.

Cost: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.


19/23

BANGLALINK

19 | P a g e

Pre-paid (Standard) Package :

Connection fee : 450.00 Tk. (20 Tk. Talk Time Free)

1st pulse for first 30 sec and 15 sec pulse onwards

Any other operator tk- .99/min [9-5 pm]

Any other operator, tk- 1.45/min [5-12 pm]

Banglalink to Banglalink, tk- .25/min [12-9 pm]

Banglalink to Other operator, tk- .25/min [12-9 pm]

20% Incoming bonus.

4 (FnF) facility in any operator ( Banglalink to Banglalink 0.25 Tk or Banglalink to

Other operator .79)

VAT will be added as usual

SME Enterprise Package :

Connection fee. 499.00 Tk (50 Tk. Talk Time Free,50 Free SMS)

20% Incoming bonus.

Any other operator, tk- .99/min [9-5 pm]

Any other operator, tk- 1.25/min [5-12 pm]

Banglalink to Banglalink, tk- .25/min [12-9 pm]

Banglalink to Other operator, tk- .25/min [12-9 pm

1 sec pulse banglalink to banglalink & 15 sec pulse other operator

Minimum Monthly Bill tk- 100

4 (FnF) facility in any operator ( Banglalink to Banglalink 0.25 Tk or Banglalink Other

operator .79)

Vat applicable


20/23

BANGLALINK

20 | P a g e

PCO Package :

Connection fee : 600 Tk

1 sec pulse

Payment facility in Cash Card

Minimum charge 500 Tk

If monthly bill exceeds 2000 tk 5% exempted and if 4000 tk. 10% exe

3.6.2Distribution:

Banglalink doesnt sell its packages directly to its customer. Rather it maintains an indirect

distribution channel for the customer. It appoints dealer for sell. Through the dealers the

packages are distributed to the customers. Consumers can get the package through them.Banglalink always wants to sell its products as many as they can. As a result they try to make the

packages available as many outlets and retailers as possible. The distribution network of

banglalink is as follows

BANGLALINK

DEALERS (THROUGHOUT THE COUNTRY)

RETAILERS

UNLIMITED CUSTOMERS


21/23

BANGLALINK

21 | P a g e

3.6.3advertising and promotion:

Banglaink basically undertakes advertisement on basis of their product. They use

mainly non persnal advertisement communication like

1. Print Media (Newspaper, Magazine, etc.) 2. Broad Cast Media (TV Media, FM radios) 3.Online Media(Internet)

4. Display Media (Sign Board, Bill Board, etc)

Their advertising strategy is like Brand Promotion, Sales Promotion, Good Will

building, Network extension notice, Inform Value added service etc.

They also use personal or direct marketing only for their corporate clients

usage; this will help them to get discounts in different shops and stores.

On the occasion of different religious and cultural festivals Banglaink can provide

greetings through leaflets, festoons, banners and so on as a public relation to

their existing and potential customers.

Another kind of promotion they can initiate to make their existing customers loyal who make a

remarkable level of revenue, Banglaink can provide offerings, such as Discount Card. They will

provide subscribers discount cards, as a reward of their substantial use of the service.

banglalink also became a leader in terms of its advertising quality and setting very high standards

for competition and others. The corporate TV commercial of "din bodol" based on the theme

"making a difference in people's lives", touched everyone through out the country and was

adjudged the best TVC of the year according to the leading dailies of the country like Prothom

Alo and New Age. This TV Commercial has become a matter of national pride for Bangladesh

as it has been nominated for the best TV Advertisement of the year with 4 other international

television commercials at the GSMA Award 2007. GSMA Award is considered to be the Oscarof mobile industry.

3.6.3 PRODUCT

Different packages of Banglalink.

Personal package 1 (Post- paid) :

Provides you the lowest call rates

Waiver of monthly fee if usage is greater than Tk.500 (without VAT)

Duplicating mobile number facility

Up to 2 supplementary connections with attractive group talk rate.


22/23

BANGLALINK

22 | P a g e

Personal package 2 (Post- paid) :

Minimum monthly bill of Tk.1,000 at the lowest call rates

Monthly 150 FREE News SMS

FREE itemized bill

FREE golden number upon availability

Duplicating mobile number facility

Up to 2 supplementary connections with attractive group talk rate.

Personal Call & Control (Post- paid) :

Usage through recharging scratch card/I top up

Lowest monthly fees

Helps you keep your usage within your control.

ISD and E-ISD:

All Banglalink Sims are ISD and it has opportunity to call only 7.50/= to 55 countries by

using 012 code called economy ISD.

Corporate Package:

Banglalink has around 40 corporate clients using prepaid or postpaid service.

International Roaming:

It has roaming facilities in 5 country also. The fortunate matter is that within one month it is

going to inaugurate roaming service in over 400 operators of 159 country.


23/23

BANGLALINK

23 | P a g e

4.0Control:The purpose of banglalink marketing plan is to control

Revenue: monthly and annual

Expenses: monthly and annualCustomer satisfaction

New product development

4.1 IMPLEMENTATION

Implementation:

The following milestones identify the key marketing programs at is important to accomplish and

implement by banglalink marketing department.

4.2Contingency plan:

If under any circumstances the discussed plan for banglalink do not works out , the necessity

steps that banglalink should undertake will include merger or hiring expertise by outsourcing.

Merging will include that banglalink will merge with any other telecom company; in this way

they will be able to exist in the market, although they might be in loss.

On the other hand if banglalink wants to outsource expertise, then they will be hiring some

efficient person who has sound knowledge about the business and can help them to overcome the

trouble and re flourish in this sector.