Professional Documents
Culture Documents
Principals of Marketing
Assignment Topic
“Marketing Mix (4 P’s) Analysis and Competitors
Evaluation: A study on “Grameenphone” Company Ltd”
Course Instructor
Mr. Hamidul Islam
Dear Sir,
Yours sincerely,
ACKNOWLEDGEMENT
This marketing plan is prepared on the basis of the assignment given by Md. Hamidul
Islam, lecturer of the American international university of Bangladesh.
While preparing the report, We acknowledgement the encouragement and full guidance
given by my course instructor .without his relentless support, it would have been
impossible to conduct this study. We express my gratitude to our instructor for providing
us detailed feedback and technical assistance on the report.
Company Overview
History
The idea of providing wider mobile phone access to rural areas was originally conceived
by Iqbal Quadir, who is currently the founder and director of the Legatum Center for
Development and Entrepreneurship at MIT.\He was inspired by the Grameen Bank
microcredit model and envisioned a business model where a cell phone can serve as a
source of income. After leaving his job as an investment banker in the United States,
Quadir traveled back to Bangladesh, after meeting and successfully raising money from
New York based investor and philanthropist Joshua Mailman, and worked for three years
gaining support from various organizations including Nobel Peace Prize laureate
Muhammad Yunus of Grameen Bank and the Norwegian telephone company, Telenor.
He was finally successful in forming a consortium with Telenor and Grameen Bank to
establish Grameenphone. Quadir remained a shareholder of Grameenphone until 2004.
Grameenphone received a license for cellular phone operation in Bangladesh from the
Ministry of Posts and Telecommunications on November 28, 1996. Grameenphone
started operations on March 26, 1997, the Independence Day in Bangladesh.
March 26, 1997: Grameenphone launched its service on the Independence Day of
Bangladesh.
June 1998: Grameenphone started its services in Chittagong, the second largest city and
the port city of Bangladesh. Cell to cell coverage between Dhaka-Chittagong was
established.
1999: Grameenphone started its service in Khulna, the industrial city of Bangladesh. Also
cell to cell coverage between Dhaka and Khulna brought a number of other districts
under coverage.
2000: Grameenphone started its services in Rajshahi, the education city of Bangladesh.
Service also started in Sylhet and Barisal and thus all six divisional headquarters got the
cellular network coverage for the first time Bangladesh.
August 2003: Grameenphone's subscribes base has become more than one million.
Grameenphone became the first operator in the country to reach the million subscribers.
November 5, 2006: Grameenphone crosses the 10 million subscriber mark after almost
ten years of operation.
Iqbal Quader
Oddvar hesjedal (Founder of GP)
(CEO of GP)
Logos of grameen phone:
Vertical logo:
Horizontal logo:
Company Vision
Company mission
The vision will be achieved by
The objective of this study is to have a clear idea of grameenphone and to find the
limitations of the tasks carried out all sector of the grameenphone.
in every research work there are some limitations faces when conducting different
activities. In the process of research work we also faces certain limitations that
hampers our general activity. some of this notable limitations are-
- GP Headquarters is located in Gulshan . But they are very busy with their regular
task, so it becomes quit difficult for them to give time in outside. And also there
are some rules and regulation so that we can not enter the head office. So that we
have to talk with their customer center officer. that was a big limitation to us.
- GP it is huge company and there are lot of employers and customer care center is
also available. the study conducted can be hampered as the marketing strategy of
GP can not be covered at the short time. We got only 2-3 weeks for preparing this
report. It could be a limitation of the study.
- We faced a big problem by doing this report that is electricity problem that take
lot of time.
The Sampling procedure has been conducted on the deliberate sampling method has
used where the respondents interviewees considered on my convince and priority.
-Sampling unit:
In order to carry out the research work, the study was focused on taking the
interviews of the personnel involved in the GRAMEENPHONE Company.
Number of respondents: 20
Age range: 20-35
Occupation: student, teacher, house wife, service holder.
Economic status: Higher middle class.
Geographical location: Gulshan, Baridhara, Banani, Dhanmondi, Santinogor,
Framgate.
Questionnaire:
Unstructured and open-ended Questionnaire (please see appendix) we asked to the
different people in the different areas of Dhaka city to find whether they are satisfied
with GP performance or not.
Observations:
When we visited the Gulshan office of GP that time we used our own observation to
collect certain pieces of information about their product marketing strategy,new
product performance as well as up coming product.
Secondary information:
Secondary information has collected by reviewing websites and some articles printed
time to time and other relevant documents.
Primary:
The primary information is gathered through internal of the employees working over
there under GP center.
Secondary:
Secondary information sources had also used to collect information.
Sources include:
-Different articles, index of GP.
-Visiting website of Grameenphone official company.
Marketing Mix is the set of controllable tactical marketing tools the firm blends to
produce the response it wants in the target market. The marketing mix consists of
everything the firm can do to influence the demand for its product. The many possibilities
can be collected into four groups of variables known as the “four Ps”: product, price,
place, promotion. Figure shows the particular marketing tools under each p.
Product Price
Variety List price
Quality Discount
Design Allowance
Features Payment period
Brand Name Credit terms
Packaging
Services Target
Customers
Intended
Promotion Positioning Place
Advertising Channels
Sales proportion Coverage
Public relation Assortments
Personal selling Locations
Inventory
Transportation
Marketing Mix
Product means the goods and services combination the company effect
Product that offers to the target market for attention, acquisition, use, or
consumption that might satisfy a want or need.
Promotion Promotion means activities that communicate the merits of the product
and persuade target customer to buy it.
A product is anything that can be offered to a market and that is potentially valued by a
target market for the benefit or satisfactions it provides, including objects, services,
organization, places, people and ideas.
Standardized Product also has been divided into two types: Pre-Paid and Post-Paid.
Pre-Paid
The brand name of prepaid products is Smile Prepaid Standard and Smile (Mobile to
Mobile).
• Smile (Prepaid Standard)
• Shohoj Package
• Aapon Package
• Bondhu Package
Smile Standard prepaid allows consumers to make and receive ISD and NWD call in
all telecom operators.
Smile Mobile to Mobile allows its consumers to make and receive call from any mobile
Postpaid
• Xplore
Customized Product
“Business Solution” is provided as a customized service to different medium and large
organization and Professionals. This customization allows interesting call and sms charge
among the member of the organization, fax and internet service within the organization
branch. The customized service of one organization is never told to other or disclosed.
Separate Strategic Business Unit (SBU) is responsible for the success of each of this
product. As the way, this organization has proved that SBU is important for the success
of a product in its market.
Interestingly “d-juice”, which is claimed as a life style brand of Grameenphone, is not
mentioned with this product line.
Different types of value added services are provided with these products as product
feature.
Branding
The name or names that identify a company’s products can be very important in
positioning them. The brand name distinguishes a product from competitor’s
products. A strong brand identity creates major competitive advantages. A brand
that is recognized by buyers encourages repeat purchases. Grameenphone is
successful in its products branding. All most every prepaid mobile phone user is
aware about its “Smile” prepaid package and business consumers are aware about
“Business Solution”. This Branding images comes from good quality of
Grameenphone’s products as well as its high promotion activities. Corporate
branding places primary emphasis on building brand identity using the corporate
name. Grameenphone has become a corporate name in telecommunication business
in Bangladesh. Corporate branding offers the advantage of using one advertising
and sales promotion program to support all of the firm’s products. And it is often
found in Grameenphone advertisements. Corporate branding has become a branding
strategy because the product offering is relatively narrow in telecommunication
business.
Grameenphone regularly evaluates the performance of its product. This evaluation of the
performance of the product portfolio provides its management with diagnostic
information to guide its strategies for new products, product modification, and product
elimination. But the strategic analysis of existing products requires tracking the
performance of the products in the portfolio, as shown below:
Portfolio grids highlight differences among products. After identifying the relative
attractiveness and business strength of the products in the portfolio, a more
comprehensive analysis of specific performance factors may be appropriate,
including:
• Profit contribution.
• Barriers to entry.
• Sales fluctuations.
• Extent of capacity utilization
• Responsiveness of sales to prices, promotional activities, service levels,
and other influences.
• The nature of technology (maturity, volatility, and complexity).
• Alternative production and process opportunities.
Several of these factors are included in the grid analysis when composite grid dimensions
are used.
Cost reduction, product alteration, product elimination works as a strategy for existing
products within this organization.
• Cost reduction
Grameenphone’s lower cost comparatively its higher class products quality give this
company major advantage over the competition. Grameenphone’s technological
innovation, marketing productivity and high volume consumer helps to maintain this
lower cost.
• Product alteration
Products are often improved by changing their features and quality. A number of
features are included with Grameenphone’s products. And these features provide a
way of differentiating a brand against competition. In November, 2006
Grameenphone renamed its products as Easy to Smile; Regular to Explore. A number
of new features also have been added with these products in that time. But
consumer’s preferences suggest that quality is more important than features in the
choice of taking connection. So quality improvements are also considered as an
important strategy for increasing competitive advantage.
• Product elimination
It is the percentage change in the quantity demanded when price changes, divided by the
percentage change in the price. GP has gained high price elasticity in the market.
• Non-price factors:
The Gold holders pay a high amount of money in buying to get the high facility.
• Cost Analysis:
Product cost provides essential information for pricing decisions. To analyze cost, GP
uses the following steps:
• Competitor Analysis:
Aktel is the major competitor of GP as it is consistent in its rates and facilities and gain a
most part of the market shares although Banglalink has more promotional activities and
call charge, they have not been able to hold the market yet. GP fixes its competitor on the
basis of market share. They fix price in keeping pace with the competitors’ price and their
probable responses to an alternative price strategies.
GP provides its distributors at low cost. In pricing the channels of distribution, it has
discrimination.
Price information:
GP publishes articles and advertisements in all national dailies and television about the
form and the availability of price information for the customers.
(4 P.m. - 12 p.m.)
24 hours
TK.1.30/min
TK 1.30/min
F&F: Tk.0.50
Incoming: Free
4 F& F GP: Tk.1.00
TK 0.49/min Outgoing:
International:
TK 1.30/min
12 pm-4 pm Tk.2.00
TK 0.49/min
Line Rent: Tk.50/month (This fee too will be waived if the subscribers' monthly airtime
usage exceeds BDT 450)
• 1 sec pulse from 1st minute onwards for all numbers except F&F
• NWD calls: BTCL's Peak (8am - 10pm) & Off-peak (10pm - 8am) rate will be
applicable for BTCL charge
• XPLORE PACKAGE 2:
GP mobiles (6
am -1 am) Incoming: Free F&F: Tk.0.50
Tk.1.50/min
GP mobiles (1 Outgoing: GP GP: Tk.1.50
Tk. .30/min* Tk.1.0/min
am -6 am) Tariff + BTTB
charge (Local/ Other Operator:
Tk.1.50/min
Other operators NWD/ ISD) Tk.2.00
(24 Hrs)
* Promotional Tariff
Aapon Package: You will be able to talk to over 23 million Grameenphone numbers at a
low rate. The package offers the following features:
This package gives you the privilege of calling 3 FnF numbers at Tk 0.49 and sending
SMS at Tk 0.5 ( GP-GP, GP-other operator at Tk 1/SMS)
Bondhu Package: This package with the highest number of F&Fs allows you to talk to
your near and dear ones at the lowest rate. This package gives you the privilege of calling
7 FnF numbers at Tk 0.49/min. You can calls to all other numbers (Other than the seven
FnFs) are BDT 0.99 per minute. SMS rates are BDT 0.50 per SMS to FnF numbers and
BDT 1 to other GP-GP and other operator numbers.
• International SMS:
Any GP user can send SMS to more than 100 million GSM subscribers all over the
world. It costs much less than making a call and is quite convenient to send.
Tariff:
Product djuice On-Net Off-Net International SMS
Smile BDT 1.50 BDT 1.50 BDT 2.00 BDT 2.00
Smile PSTN BDT 1.50 BDT 1.50 BDT 2.00 BDT 2.00
Post paid BDT 1.50 BDT 1.50 BDT 2.00 BDT 2.00
djuice BDT 0.50 BDT 1.00 BDT 1.50 BDT 2.00
News service:
GP provides news and sports update.
Tariff:
Tariff Structure
PACKAGE 1 PACKAGE 2
Pricing: The following table shows price of different contents offered by GP:
1 Poly tones 15
2 True tones 20
3 Wallpaper 10
4 Animation 10
5 Color Logo 10
6 J2ME Games 40
7 Video Clips 30
8 Themes 20
Grameenphone Distribution Mix
To perform the above task effectively GP uses its own distribution channels, which are
distinguishable from others. When initially selecting a channel of distribution for a new
product, the pricing strategy and desired positioning of the product may influence the
choice of the channel. Once the channel of distribution design is complete and
responsibilities for performing the various marketing functions are assigned, these
decisions establish guidelines for pricing, advertising and personal selling strategies. GP
is very much efficient in establishing these types of strategies. It helps them to maintain
an exclusive distribution channel to serve the end-users.
The number of GP owned distribution centers all over the country is around 18. The
centers serve customers directly and deal them with guidelines and advices to make the
communication through network system easier and quicker. Besides there are around 60
franchises spreading all over the country right now.
These franchises deal with the customer problems and requirements; they gets complains
from customers, they collect creative suggestions from the valuable customers. And other
channels- such as dealers, retailers- are making the products and services of GP more
diversified to the customers.
GP has not come to its present situation instantly. Various types of changes incurred
during the years of its business. We will see the different channels at different time period
one by one.
From the beginning of the business of GP, it supplied its SIM to the distribution centers.
Dealers got the product from the centers and sold those to retailers. The retailers, at last,
sold the product to end users. This was a traditional channel. Sometimes, end-users
purchased products from dealers as a whole to minimize the purchasing cost. Company
did not sell directly to the customers at that time.
Only three years ago GP introduced a new and convenient channels of distribution to
overcome the traditional system. The two tails of the channel is the most attraction part to
the customers.
Through around 30 distribution centers, GP distributes all key parts of the country.
Dealers, as an intermediary, purchase the products from the centers and disburse those to
two types of retailers. One is – exclusive retail outlet and another one is – non-exclusive
retail outlets are permitted to sell the products of only GP. They are the guaranteed or
authorized retailers. Non-exclusive retail outlets can sell other companies’ product as
well as they have no relation the customers or end-users buy products from either of two
types of retail outlets. They get the product or service of company in the most convenient
way at the student time period.
Any paid form of nonperson presentation and promotion of ideas, goods or services
by an identified sponsor. Grameenphone advertising can introduce the company and
the products. If the product embodies new features, advertising can explain them.
Advertising can remind customers of how to use the products and reassures them
about their purchase.
o Newspapers
Newspaper covers all sorts of information about grameenphone’s product. It mainly
covers the informative and reminder advertising.
o Television
o Radio
Within a lower cost, grameenphone broadcast their massage through radio. It is a
better way for persuasive advertisement.
o Magazines
o Newsletters
o Internet
Internet performs effective promotional tools grameenphone advertising. It gathers all
sort of information about grameenphone.
Sales promotion tools vary on their specific objectives. Grameenphone uses sales
promotion to acquire broader promotion objectives:
o Price-packs:
Nokia handset festival @ GPC’s
Grameenphone Ltd. kicked off the first handset bundled promotion at its
Grameenphone Centers around the country. Under this promotion free GP
connections and bonus talk time, Tk.660 to Tk.2000 depending on handset, are being
offered with select popular Nokia models.
thankyou
thankyou is grameenphone way of expressing their gratitude, because not only has
consumer loyalty touched us but has also made grameenphone the preferred mobile
operator. Grameenphone thankyou program provides consumer with a number of
rewards that will make consumer mobile phone experience with gramophone even
more satisfying.
o Prizes:
grameenphone pothe pothe utchob
Grameenphone’s mobile transport travels all around the country and arranges
different types of amusing game/contest for their loyal customers and offers attractive
prizes who win the game /contest.
o Patronage Awards:
thankyou crown, Be Special, Be crown
Grameenphone offers the prestigious thankyou crown membership to especially cater
to you. To enrich your life, grameenphone offers premium services and exclusive
discounts.
You will also enjoy exceptional service at all our customer touch-points. Just
introduce yourself with your Grameenphone number and put your feet up! We will
take care of your problem while you relax.
o Premium:
o Price-Off:
All Business Solutions postpaid subscribers will enjoy 150 minutes free talktime per
month for 3 months to call their F&F numbers.
For new subscribers, the offer is valid from the date of activation and for existing
subscribers, the offer is valid from 28 March '07.
Grameenphone Public relations process:
Public relation is one of the grameenphone strategic promotion tools building good
relations with the company’s various publics by obtaining favorable publicity,
building up a good “corporate image”.
Public relations can have a strong impact on public awareness at a muck lower cost
than advertising can. Grameenphone use public relations to communicate with their
publics by setting some public relation objectives. The objectives are:
Grameenphone public relation uses several tools. The tools are following:
o Publications:
Grameenphone published some sorts of materials to reach and influence their target
market. Some publication materials are:
Annual report
Articles
Grameenphone Newsletter
o Events:
Grameenphone arranges some special event to draw attention to new products or
companies activities. Some special events that grameenphone arranges frequently:
Seminar
Conference
Trade shows
o Sponsorship:
Grameenphone promote their brands and corporate name by sponsoring sport and
cultural events and highly regarded causes. Some current sponsorship by
grameenphone are:
o News:
Grameenphone finds or creates favorable news about the company, its product and its
people and get the media to accept press release and attend press conference.
Grameenphone in its official website media site covers all news about grameenphone,
its product and its people.
o Public-Service Activities:
Grameenphone has always been more than just a mobile phone service provider in
Bangladesh. It builds goodwill by contributing money and time to good causes.
Public service activities that performed by grameenphone are:
o Identify Media:
Personal selling serves as the grameenphone’s personal link to customer. The sales
representative is the grameenphone to many of its customers. Personal selling
performs for establish some objectives. Those are:
Grameenphone mainly focus on inside sales forces that conduct business from their
customer care centre via telephone or visits from prospective buyers.