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American International University- Bangladesh (AIUB)

Marketing Plan of Banglalink

A Term Paper submitted in Partial Fulfillment of the Requirement for the course Marketing Management for the Degree in Bachelor of Business Administration Submitted to, Faculty: Hamidul Islam Course name: Marketing Management Department name: School Of Business (BBA) Semester: Summer 2009 Section: I Submitted by, Neel, Samiul Gani Ahmed, Iftekhar Nayeem Rafiq Istiaq Bin Rabbe, Abdul Ahad 07-09328-3 07-08659-2 08-10849-2 07-08293-1

Letter of Transmittal
1st August, 2009 Hamidul Islam Course Instructor Marketing Management School of Business American International University - Bangladesh

Dear Sir, With immense and pronounced Marketing Plan of Banglalink which is a partial fulfillment of the requirement of the final-term examination in Marketing Management. This report has enabled us to get an insight about the Marketing Plan of Banglalink. We are very grateful to you for giving us this wonderful opportunity. I hope that readers would come to know all the main and crucial reasons about the Marketing Plan of Banglalink. Thanking You, Sincerely Yours, Neel Samiul Gani. (Group Leader)

Acknowledgement
First we would like to thank our Almighty Allah Rabbul Alamin that his blessings were always with me so that we are able to do complete this work. We owe debt of gratitude to all those who helped us with this study. First we must thank the almighty the beneficent, the merciful. We thank our course teacher Hamidul Islam who provided support to construct the conceptual frame work of the study. We would like to thank all the member of Prothom Alo and Daily star for giving us some important datas based on tele - communication sector of Bangladesh. We also would like to thank those website developers who develop those sites. Our class mates were really frank & cooperative to share their ideas as well as write the report about the Marketing Plan of Banglalink.

Executive Summary
Banglalink is new brand name of Shebaworld (019), which has been providing Global Service of Mobile (GSM) in the country since 1998. Orascom Telecom bought 100% share of Sheba Telecom and gave its new name as Banglalink aiming to provide quality service in Bangladesh. When Banglalink entered the Bangladesh telecom industry in February 2005, the scenario changed overnight with mobile telephony becoming an extremely useful and affordable communication tool for people across all segments. Within one year of operation, Banglalink became the fastest growing mobile operator of the country with a growth rate of 257%. This milestone was achieved with innovative and attractive products and services targeting the different market segments; aggressive improvement of network quality and dedicated customer care; and effective communication that emotionally connected customers with Banglalink. Banglalink entered the market with a promise of making mobile phone affordable for people. This promise was kept and Banglalink was the first operator to introduce a flat rate for all calls (inside own network and to other operators) for the convenience and ease of customers. Banglalink focused heavily on enhancing service and quality during 2006. These enhancements were done in terms of network quality and customer service. There was aggressive improvement of indoor coverage, and wherever necessary, especially in-building solutions were installed in case of enterprise customers and corporate clients. To provide better customer service, a new, expanded, state of the art call center has also been established. At the end of the 2006, there have been a six customer care centers and 63 franchise centers across the country attending various customers with different queries. Banglalink continues to play an active role in the area of corporate social responsibility. Banglalink has given Dhaka International Airport - the gateway of Bangladesh a completely new look. Provision of high quality passenger trolleys, phone booths, emergency charging station and beautification of the premises is an exemplary initiative which no other multinational has taken. Banglalink also contributed to an important tiger conservation project in the Sundarbans, and continues to support the Cox's bazaar beach cleaning program.

Table of Contents
Page Introduction.... 1.1 Rationale of the Study 1.2 Objectives 1.3 Methodology 1.4 Limitations Company Overview... Marketing Plan.. 1.1 Situation Analysis 1.2 Product. 1.3 Marketing Strategy.......... 1.4 Distribution Network... Recommendations & Conclusion..... 9 15 15 19 24 30 34 7

Bibliography...

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INTRODUCTION
1.1 Rationale of the Study

Banglalink is one of the leading cellular companies in Bangladesh. It starts its operation since 2000. Within one year of launching it has become one of the leading cellular companies by its effective marketing mix. Effective segmentation and target market strategy it easily goes to the knock of the people by introducing various package for the customers. The company sets the price effectively. As a result people from various societies can get the facilities of cellular company. For the promotional sector Banglalink presents itself as an icon to the other companies. Within a very short time it spreads its network coverage and maintains an indirect distribution channel to reach the consumers.

It is very important to evaluate the marketing mix of Banglalink.

1.2 Objectives

The objectives of this paper are as follows: Provide an overview of the Banglalink. To evaluate the marketing plan of the Banglalink. To identify the factors influencing on the marketing plan of the company. To find out the strategies need to implement for achieving its long term goal.

1.3 Methodology

The study covers the operation of Banglalink. Moreover, history of Banglalink, its prospects in Bangladesh, its operational issues and problems, mission, vision and objectives of the company are also covered. Details of functional activities of Banglalink are provided to get an understanding of the organizational structure and activities of FMCG Company.

For this study information is collected from both primary and secondary sources. Investor relations section of the Website www.banglalinkgsm.com is an immense source of information about Banglalink.

1.4 Limitations

This paper suffered from a number of limitations. Some are stated below:

As a novice it was difficult for us to analyze the total marketing plan.

In case of Trend and Time series analysis interpretation based on five years data of the companys early stage of operation may not reflects true picture of the future as very low values of the early years of a brand new organization.

As a student of BBA, due to time constraint, comprehensive study based on information collected from primary source is not possible by us. So, we interview some of the marketing executives to get an idea of operations and issues in the company.

COMPANY OVERVIEW
What Is Banglalink
Banglalink is new brand name of Sheba World (019), which has been providing Global Service of Mobile (GSM) in the country since 1998. Orascom Telecom bought 100% share of Sheba Telecom and gave its new name as Banglalink aiming to provide quality service in Bangladesh.

Behind Banglalink
ORASCOM TELECOM is one of the most dynamic telecommunications powerhouses in the world. Orascom is based in Egypt and has operations in 11 countries worldwide. Established in 1998, it is today the largest capitalized company on the Cairo & Alexandria Stock Exchanges with over 11 million subscribers worldwide. It has grown to be one of the largest and most diversified GSM network operators in the Middle East, Africa and Asia

Making a Difference
When Banglalink entered the Bangladesh telecom industry in February 2005, the scenario changed overnight with mobile telephony becoming an extremely useful and affordable communication tool for people across all segments. Within one year of operation, Banglalink became the fastest growing mobile operator of the country with a growth rate of 257%. This milestone was achieved with innovative and attractive products and services targeting the different market segments; aggressive improvement of network quality and dedicated customer care; and effective communication that emotionally connected customers with Banglalink. Banglalink entered the market with a promise of making mobile phone affordable for people. This promise was kept and Banglalink was the first operator to introduce a flat rate for all calls (inside own network and to other operators) for the convenience and ease of customers. Banglalink focused heavily on enhancing service and quality during 2006. These enhancements were done in terms of network quality and customer service. There was aggressive improvement of indoor coverage, and wherever necessary, especially in-building solutions were installed in case of enterprise customers and corporate clients. To provide better customer service, a new, expanded, state of the art call center has also been established. At the end of the 2006, there have been a six customer care centers and 63 franchise centers across the country attending various customers with different queries.

10 Banglalink continues to play an active role in the area of corporate social responsibility. Banglalink has given Dhaka International Airport - the gateway of Bangladesh a completely new look. Provision of high quality passenger trolleys, phone booths, emergency charging station and beautification of the premises is an exemplary initiative which no other multinational has taken. Banglalink also contributed to an important tiger conservation project in the Sundarbans, and continues to support the Cox's bazaar beach cleaning program.

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

Vision
To be the best quality Service Provider in the country.

Management Team

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MD & CEO Director- Admin CFO CTO Director- Marketing Director-Sales Director- CCD Head of HR Director IT

Rashid Khan Altaf Faquih Ezzeldin Heikal Mohamed Ghidan Omer Rashid Suhail Jan Muhammad Arshad Tarek Beram Waleed El-Sonbaty

Organizational Structure

MD & CEO

ADVISOR

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Chief of corporate Affairs & Strategic Planning

Chief Financial Officer

Chief Market ing Officer

Head of Custom er Care Dept.

Head of Human Resour ces

Head of Engine ering

Chief Technic al Officer

Head of Billing & IT

Functional Department

Banglalink has the following functional departments:

Sales & Marketing:

The Sales& Marketing department functions in different categories such as Research & Product Development, Marketing Communications, Corporate & Direct Sales, Channel Management, FWT & Backbone Solutions, Logistics & Trade Support, International Roaming etc. Sales and marketing is responsible for setting up of the sales channels and mechanisms by which the services packages are actually sold to the customers. This department also deals with corporate sales. This department however deals mainly with sales to corporate customers and maintenance of relations with both current clients as well as counting out potential new corporate clients, whereas the after sales service and other issues are dealt with by the customer services operations section of the company. This department also has the very important job of setting up marketing channels by which packages are distributed among clients and feedback is obtained from customers. This department is responsible for the selection of dealers and motivating them to promote Banglalink packages to the customers in their respective areas. Brand Marketing and Research & Product Development id responsible for all the promotional activities of Banglalink products, developing brand image and also designing new packages.

Customer Care:
Customer Care Department is responsible for coordinating all sorts of customer support activities. Its primary task is to ensure that challenging goals are set for each sub-department according to the organizational aims and each employee

13 understands his or her role in supporting the customer. CCD has a responsibility to ensure smooth coordination between the activation, servicing and bill collection activities. CCD operated in different sections such as front office, activation and Verification, collection and retention, call center etc. Call Center is a 24hours service provided to the customers where a customer can easily call to the hunting numbers and ask for any sort of queries & clarification. Call Center Agents try to solve the customers problem instantly if possible or guide them accordingly. Another functional area under the Customer Care Department is Workshop where faulty handsets are repaired.

Finance:
This department is responsible for co ordination of various finance and Fund management activities of Banglalink. This Includes LC and purchase fund management payment of deposit paid by customers, cash flow management, and insurance cost management, forecasting and budgeting, negotiating with Banks etc. Different sections under this department are Commercial, Fund Management, and Budgeting. This department also looks after the functioning of Central Stores from where mobile sets, all other accessories and all sorts of stationeries are issued.

Corporate Affairs & Strategic Planning:

This department has been introduces recently to facilitate the following activities: Secretarial Activities ensure proper implementation of relevant laws of company acts and ensures proper reporting to various regulatory bodies. Tax & Vat Managing and controlling corporate tax and Vat related issues and co-ordinate with the tax regulatory boards. Business activates regularly meets regulatory bodies and different stakeholders to ensure smooth running of operational activities of the company.

14 Revenue Assurance ensures revenue of the company and develops strategy to increase revenue as well as protection of revenue leakage.

Human Resources:
Human Resources Department functions in he following distinct sections: Banglalink believes that their teamwork is our greatest asset. Useful contributions made by each individual bring us that much closer to our goals. The Banglalink family is made up of a group of passionate individuals, uniquely qualified from diverse disciplines but working towards our vision. Banglalink ensures for the Tigers/Tigress: A friendly, professional and mutually supportive environment that encourages our people to develop their potentials to an optimal level. A true quality of professionalism that can be found in all world-class multinational companies. Team oriented professionals, who contribute to the greater whole of the organization through their participation in decision making situations. A system which recognizes and rewards groups as well as individuals for their efforts and contributions to the company.

Billing & IT:

Billing activities include bill generation, dispatch of bills and risk management. The bill generation area is responsible for the actual process of preparing the bills for the customers and sending those bills at the necessary time to allow for delivery time and payment by customers. Where as Risk Management area responsibilities include checking usage against credit limit. IT section provides all sorts of systems or technical support i.e. troubleshooting, installation of computers, maintaining the computerized attendance system etc

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MARKETING PLAN
1.1 Situation 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.

Market Summary
Banglalink posses 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.

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 customers dont 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 its customers. The valued customer can solve the problems over mobile phone dialing 121. It has also customer care service all over the country mainly in the city areas. But the centers are too limited to meet the huge demand. Now at this Banglalink is expanding its customer care centers and upgrading its quality. Banglalink is committed to meet the customer demand and problem as soon as possible.

16 Service at Low Price: Before Banglalink starts its operation the tariff was higher than any other period. At that time the three mobile companies charged Tk. 6 for per minute outgoing calls and Tk.2 for per sms. But the company was committed to provide quality service at a lowest price. As a result Banglalink is the fastest growing telecom company in Bangladesh. This is because of providing quality service at a lowest price.

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.

Product Life Cycle

The process of developing and maintaining a fit between an organizations goals and the dynamic environment is the strategic planning. 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.
SALES

PLC
40 35 30 25 20 15 10 5 0

ct io

In tro du

Sales
M at ur it y th G ro w D ec l in e

17 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 Banglalink is growing at a positive rate in total market. That means the overall growth rate compare to over all 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.

SWOT Analysis
Strength - Company Image - Existing Channel - Well Management Capability - Expert Marketing People - Skilled Worker - Capability To Finance Opportunity - New Products Idea - Large Market - Availability Of Raw Materials - Bankable Project - Low Price Of Raw Materials Threats - Political Unrest - Extortion & Rising Crimes - New Competitors Weakness - Lack Of Experience - Short Of Sales People

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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 variety of services at a very cheaper rate.

Grameen Phone Warid Telecom Tele Talk City Cell Aktel

Grameen Phone 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.

COMPETITION SCENERIO OF TELCO 6% 3% 10% 55 % 27% GRAMEEN PHONE BANGLALINK AKTELl CITYCELL TELETALK &WARID

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

19 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 a premium price. It could include a strategy of market challenger. Banglalinks competitor to challenge the market is GRAMEEN PHONE (GP) and their strategic objective is To receive an economic return on its investment.

1.2 Product:

Package
Banglalink has got different type of customer oriented packages for the customers. Banglalink offers 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 speak your language. 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 is: No monthly subscription fee. One country one rate.

20 30 days extra incoming facility once the validity is over and then 90 days grace period on scratch card and e-fill.

Banglalink is offering its customers the following prepaid products to suit their connectivity needs:

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. "Banglalink Desh" tariff plan Outgoing 1. Banglalink Desh 9am to 5pm* Banglalink to Banglalink Tk.1.15/min Banglalink to Others Tk.1.15/min Peak (9 am to 12 am) Banglalink to Banglalink Tk.1.75/min Banglalink to Others Tk.1.75/min Off Peak (12 am to 9 am) Banglalink to Banglalink 29 paisa/min Banglalink to other mobiles 99 paisa/min Peak (0900hrs-2400hrs) Off peak (2400hrs-0900hrs) FRIENDS & FAMILY (3 Numbers) On net 0.99 0.29 Tk.0.59/min Banglalink to Banglalink Off net 2.00 0.99 3 on net FnF rate Banglalink to any mobile 0.50 Tk.0.79/min 0.29 SMS rateSMSnet) (0n 0.25 SMS rateBanglalink to Banglalink (off net) 0.50 Tk.0.75/SMS 2. Banglalink Desh Rang Pulse Banglalink to Others 30Tk.0.75/SMS sec

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3. Ladies First

1. 1 second pulse from 2nd pulse which allows you to call with 1 second pulse facility and pay as much as you talk.

2. 4 FnF to any Banglalink number: 79 paisa/min. 3. Late night tariff for calls to any Banglalink number from 12 am - 9am: Tk.0.29/min 4. To any Banglalink number from 9am - 11pm: Tk.1.79/min. 5. SMS to Banglalink numbers at 49 paisa/sms and to other mobile: Tk.1.00/sms. 6. To other operators from 7am - 11pm Tk.2.00/min and from 11pm - 7am: 89paisa/min.

Post Paid Packages Enterprise Personal Packages

Banglalink constantly strives to provide you the best service at the most affordable price. You can now choose the appropriate package based on your need and usage pattern. Change Of Package Name: All previous Banglalink postpaid customers are now personal package 1 customers. Similarly, all Banglalink postpaid 600 and 1200 customers are now personal package 2 customers and Banglalink call & control customers are now personal call & control customers.

22 Call Charges: personal package 1 Monthly line rent/Minimum monthly 100 bill* Outgoing call (BL-BL) 00:00 to 9:00 hrs** 0.29/min 08:00 to 23:00 hrs 1.50/min 23:00 to 08:00 hrs 1.50/min Outgoing call (BL-others) 08:00 to 23:00 hrs 1.85/min 23:00 to 08:00 hrs 1.50/min Number of FnF 4 FnF: 24 hrs BL to BL 0.59/min BL to other mobiles 0.79/min 00:00 to 9:00 hrs BL to BL** 0.29/min Pulse BL to BL 1 second BL to others 30/30/15 SMS BL to BL 0.75/SMS BL to others 1.00/SMS BL to international 1.62/SMS personal package 2 1,000* personal call & control 50

0.29/min 1.40/min 1.40/min 1.40/min 1.40/min 5 0.59/min 0.79/min 0.29/min 1 second 1 second 0.75/SMS 1.00/SMS 1.62/SMS

0.29/min 1.60/min 1.00/min 1.95/min 1.50/min 3 0.59/min 0.79/min 0.29/min 1 second 30/15/15 0.75/SMS 1.00/SMS 2.00/SMS

You can enjoy the discount every month as mentioned in the following table: Monthly outgoing voice calls (Excluding T&T charge, Roaming & VAT) Tk.401-1500 10% 8% 7% Tk.1501-3000 12% 10% 8% Tk.3001+ 15% 12% 10%

Length of stay with Banglalink More than 2 years More than 1 year, Less than 2 years Less than 1 year

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1.3 Marketing Strategy

Mission
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.

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

Target 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 widely scattered, and too varied in their needs and buying practices. Incase of Banglalink, from teenager to any age group; from lower-middle class to upper-upper; from Teknuff to Tetulia regardless to race, religion, gender literacy level, life style or personality any and every single person who is in need of a telephone line backed with affordability spend the expense of possessing a mobile phone is their target market. This indicates that in choosing market segment, segmental marketing is appropriate for them. That means the company should recognize that buyers differ in their needs, perceptions, and buying behavior. For this Banglalink have made a various type of customization in phone lines and phone set along with different prices are charged against each segment of the target market. Below the various types of mobile phone sets, lines, prices and the billing system offered by Banglalink are discussed related to geographic, demographic, and psycho-graphic segmentations.

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Market Segmentation
Banglalink has the following segmentation bases: If we look at to the segments from the geographic angle we find that it started its service from the capital of Bangladesh Dhaka city. Then it extended its coverage area into Chittagong, Sylhet, Khulna, and gradually the 61districts of the country. Although Banglalink is covering most of the part of the area, still they left 3 more districts. There are government restrictions for the network coverage of those hill traces areas
22-30 30-35 35 & above 4,500-10,000 10,000-25,000 25,000 & above Desh & Ladies First Desh & Enterprise Enterprise

As to segment the cellular phone consumers psychographic segmentation plays the most important role. Psychographics segmentation divides consumers into different segments based on social class, life style or personality. It is very important to design the products and services of mobile company according to the consumers psychographic factors
Over All Segmentation

Others 4% Young People 44%

House Wives 4%

Middle income group 31%

Service holders 17%

Figure # 4: Over All Segmentation

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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 Banglalink 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 a milestone in setting up its network. After one and 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.

Demographic Market Segmentation

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 the consumers an opportunity to use their cellular phone in 172

26 abroad countries. The products of Banglalink are available for certain classes of users.

Marketing Mix Pricing 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 The New Packages

We 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 the penetration strategy to 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.

Operators Rate Package Rate

Warid Tk.150

CityCell Tk.1395

Aktel Tk240

BanglaLink Tk.150

Grameen Phone Tk240

TeleTalk Tk.260

This price is for M2M connection.

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(Data of the month September 2007)

Special Strategy For Pricing

Flexible Pricing: Banglalink 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 its price is 150 taka and as the Enterprise is for the business men and its price rate is Tk.1000. Odd Pricing: Banglalink follows odd pricing for the package. Instead of even pricing it maintains odd pricing like instead of Tk.200 it sets Tk.150.

Discount
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. Tk.120 free for the every new connection. 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.

28 Free talk to any Banglalink on every Friday and Saturday from 1 am to 7 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).

Factors affecting Price determination

Estimated Demand: Banglalink always estimate the demand of the consumers and sets price according to meet the demand. When new products come into the Market people are often less likely to buy the product. Competitive Reaction: The market is very competitive in deed and as a new company it has to compete with the five potential companies. Setting the price Banglalink is always sincere about the competitors action. When Grameen Phone 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. It can be better observed from the following chart

Call Rate Of Banglalink Relative To Other Operators

Operators Rate Package Rate Off-Pick Hour(1st Warid Tk.1.20 Tk.1.00 Aktel Tk.1.19 Tk0.30 BanglaLink Tk.1.15 Tk.0.29 Grameen Phone Tk.1.20 Tk.0.60 TeleTalk Tk.1.20 Tk.0.30

29 Minute)

1.4 Distribution Network:

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:

Graph:

Banglalink

Dealers(through out the country)

Retailers

Unlimited Consumers Network Coverage

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Advertising & Promotion

Banglalink basically undertakes advertisement on basis of their product. They use mainly non personal 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, Banglalink 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, Banglalink 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 Oscar of mobile industry.

32 Control:

The purpose of Banglalink marketing plan is to control:

Revenue: Monthly And Annual Expenses: Monthly And Annual Customer Satisfaction New Product Development

Implementation:

The following milestones identify the key marketing programs as is important to accomplish and implement by Banglalink marketing department.

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Recommendations & Conclusion

Banglalink as a novice cellular company has improved its condition within a very short time. It was done because of the right decision and proper marketing policy of the company. The marketing plan of the company has proven right for the organization because its spreading its business gradually. But still it is not the biggest cellular company in the country. GP is the leader in the market and Banglalink has got lot of aspect to improve the situation. TO be the market leader Banglalink must be very careful in the field of marketing plan and the success of the company is a matter of subject that how they are implementing the plan.

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BIBLIOGRAPHY
Websites:

o http://wikipedia.search.com.bd/HT/D_0109.htm o http://wikipedia.search.com.bd/HT/D_0145.htm o http://www.worldinfo.com/economics/01.php o http:// www.banglalinkgsm.com

Books:

o Marketing Management (12th Edition) - Philip Kotler & Keller o Marketing (13th Edition) - Etzel, Walker & Stanton o Fundamental Of Marketing (13th Edition) - Philip Kotler

Newspapers:

o The Daily Star. o The Independent. o Daily Prothom Alo.