Professional Documents
Culture Documents
130105169
Letter of Transmittal
Date: 02 August 2010
Md. Hamidul Islam
Course Instructor
Principles of Marketing
Dear Sir,
It gives ours immense pleasure to submit a report on Grameenphone. This report is
submitted as a partial fulfillment as a part of our course. The preparation of the report
has given ours and insightful experience and in-depth knowledge on Grameenphone
Company in Bangladesh. We have given our best effort to make it a worthy one and each
aspect of the problem is considered and studied as required.
If any confusion arises or further explanation is needed, we shall be available to explain
the matter to you as and when required despite when required despite having limitations.
Your benign and authoritative advice will encourage us to conduct further flawless
research in future.
Yours sincerely,
BRIGHT COSTA ID: 09-14293-2
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.
Besides, a number of people and institutions are to be thanked
Chapter 1: Introduction
Company Overview
Grameenphone (), widely known as GP, is the leading telecommunications
service provider in Bangladesh . With more than 20 million subscribers (as of June 2008),
Grameenphone is the largest cellular operator in the country. It is a joint venture
enterprise between Telenor and Grameen Telecom Corporation, a non-profit sister
concern of the internationally acclaimed microfinance organization and community
development bank Grameen Bank. Telenor, the largest telecommunications company in
Norway, owns 55.8% shares of Grameenphone, Grameen Telecom owns 34.2% and the
remaining 10% is publicly held.
Grameenphone was the first company to introduce GSM technology in Bangladesh. It
also established the first 24-hour Call Center to support its subscribers. With the slogan
Stay Close, stated goal of Grameenphone is to provide affordable telephony to the entire
population of Bangladesh.
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.
Grameenphone originally offered a mobile-to-mobile connectivity (widely known as GPGP connection), which created a lot of enthusiasm among the users. It became the first
operator to reach the million subscriber milestone as well as ten million subscriber
milestone in Bangladesh
November 28, 1996: Grameenphone Ltd. received cellular license by the Ministry of
Posts and Telecommunications of 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 2005: Grameenphone registered more than 5 million subscribers.
November 5, 2006: Grameenphone crosses the 10 million subscriber mark after almost
ten years of operation.
September 20, 2007: Grameenphone reaches 15 million subscribers mark.
June 2008: Grameenphone reaches 20 million subscribers landmark.
Oddvar hesjedal
(CEO of GP)
Iqbal Quader
(Founder of GP)
Vertical logo:
Horizontal logo:
Company Vision
Company mission
The vision will be achieved by
1)
2)
3)
4)
5)
Specific objective
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.
A)
B)
C)
D)
E)
F)
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.
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.
Secondary:
Price
Variety
Quality
Design
Features
Brand Name
Packaging
Services
List price
Discount
Allowance
Payment period
Credit terms
Promotion
Advertising
Sales proportion
Public relation
Personal selling
Product
Price
Target
Customers
Intended
Positioning
Place
Channels
Coverage
Assortments
Locations
Inventory
Transportation
Marketing Mix
Product means the goods and services combination the company effect
that offers to the target market for attention, acquisition, use, or
consumption that might satisfy a want or need.
Price is the amount of money charged for a product or service, or the
sum of the values that consumers exchange for the benefits of having or
using the product or service.
Place
Promotion
Standardized Product
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 companys products can be very important in
positioning them. The brand name distinguishes a product from competitors
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 Grameenphones
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 firms 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.
Grameenphones Strategic Analysis of Existing Products
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:
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.
Grameenphones Strategy for existing products
Cost reduction, product alteration, product elimination works as a strategy for existing
products within this organization.
Cost reduction
Grameenphones lower cost comparatively its higher class products quality give this
company major advantage over the competition. Grameenphones 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 Grameenphones 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
consumers 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
product line such as Any Time-300, Any Time-450 and Any Time-500. But product
elimination is a very important decision that is thoroughly evaluated by
Grameenphones management. Because Grameenphones core value is Make it
easy. Those similar type of products confused customer. There fore these have been
eliminated so that consumers feel easy to use Grameenphones products.
Grameenphones corporate culture committed to provide good quality services .It
believes that quality improvement is an organizational responsibility. So this will
continuingly introduce good quality services or product comparatively minimum price.
Price Elasticity:
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-GP
(4 P.m. - 12 p.m.)
TK.1.30/min
12 pm-4 pm
TK 0.49/min
Any Mobile
F&F
BTTB (local/NWD/ISD)
4 F& F
TK 0.49/min
Incoming: Free
Outgoing:
TK 1.30/min
24 hours
TK 1.30/min
SMS Charge
F&F: Tk.0.50
GP: Tk.1.00
International:
Tk.2.00
Line Rent: Tk.50/month (This fee too will be waived if the subscribers' monthly airtime
usage exceeds BDT 450)
BTCL Incoming is absolutely free for Xplore :
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:
Tariff
GP mobiles (6
am -1 am)
GP mobiles (1
am -6 am)
Other operators
(24 Hrs)
* Promotional Tariff
Tk.1.50/min
Tk. .30/min*
Tk.1.50/min
F&F
BTTB
(local/NWD/ISD)
Incoming: Free
Tk.1.0/min Outgoing: GP Tariff
+ BTTB charge
(Local/ NWD/ ISD)
SMS Charge
F&F: Tk.0.50
GP: Tk.1.50
Other Operator:
Tk.2.00
Voice call
Time
GP-GP
GP-Other Operators
24 Hours
Tk. 0.79/min
Tk. 0.79/min
Tk. 1.00/SMS
Tk. 1.00/SMS
SMS
Aapon Package: You will be able to talk to over 23 million Grameenphone numbers at a
low rate. The package offers the following features:
Time
Voice call
GP-GP
GP-Other Operators
Tk. 1.49/min
Tk. 0.49/min
Tk. 1.49/min
Tk. 1.49/min
Tk. 0.49/min
Tk. 0.99/min
Tk. 0.49/min
Not Applicable
SMS
SMS (FnF)
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.
Time
GP-GP
GP-Other Operators
24 Hours
Tk. 0.49/min
Not Applicable
Voice Call
24 Hours
Tk. 0.99/min
Tk. 0.99/min
SMS
Tk. 1.00/SMS
Tk. 1.00/SMS
SMS (7 FnF)
Tk. 0.50/SMS
Not Applicable
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:
BDT 2.0 MP3 tones
Grameenphone EDGE
Grameenphone offers EDGE (Enhanced Data Rates for Global Evolution), an advanced
mobile technology which enables high-speed mobile Internet and data services. It is
about 8 times faster than GPRS.
Tariff Structure
PACKAGE 1
PACKAGE 2
Subscribers
ALL
None
BDT 1,000.00
Browsing Charge
BDT 0.02 / kb
NIL
Content Download
As per content
As per content
Pricing: The following table shows price of different contents offered by GP:
Contents
Poly tones
15
True tones
20
Wallpaper
10
Animation
10
Color Logo
10
J2ME Games
40
Video Clips
30
Themes
20
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.
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.
Sales Promotion
Advertising
Newspaper
Television
Radio
Magazines
Newslette
r
Internet
Price packs
Cash Refund Offers
Prizes
Patronage Award
Premium
Price Offs
Public Relation
Publications
Events
News
Sponsorships
Public service
activities
Identity Media
Personal
Selling
Inside Sales
Force
Persuasive Advertising
Reminder Advertising
Reminding consumer that the product may be needed in the near future
Reminding consumer where to buy it
o Newspapers
Newspaper covers all sorts of information about grameenphones product. It mainly
covers the informative and reminder advertising.
Target audience
Literate people.
Message characteristics
Flexibility, high believability
Duration
Cost
Short life
Lower
o Television
Television is an effective media for good mass-market coverage. Television telecasts
messages about new product and it is mostly used for persuasive advertisement.
Target audience
All types of
Message characteristics
Duration
Cost
High
people but
teenagers
influences more
clutter
o Radio
Within a lower cost, grameenphone broadcast their massage through radio. It is a
better way for persuasive advertisement.
Target audience
All types of people
but teenagers
influences more.
Message characteristics
Duration
Cost
Lower
o Magazines
An effective media that grameenphone uses as a promotional tool to achieve the
customers awareness about grameenphone and its product. It is an effective media
for informative and persuasive advertisement.
Target audience
Middle and Upperincome audience.
Message characteristics
Duration
Cost
Medium
o Newsletters
Grameenphone publishes newsletter regularly to inform existing customer as well as
potential customer about companys recent activities and offer.
Target audience
Loyal
consumers and
interest persons
o Internet
Message characteristics
Very high selectivity, full control.
Duration
Short life
Cost
Relatively
low cost
Message characteristics
High selectivity, interactive
possibilities.
Duration
Cost
Long time
still update
Relatively
low cost
For retailers
Persuading retailers to carry new items
Encouraging stocking of related items
Offsetting competitive promotions
Building brand loyalty
Gaining entry into new retailers outlets
Many tools can used to accomplish sales promotion objectives. Describes of the main
consumer, trade and business tools that grameenphone uses as short-term incentives
to encourages the purchase the product follow:
o Price-packs:
Nokia handset festival @ GPCs
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.
o Prizes:
grameenphone pothe pothe utchob
Grameenphones 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.
Membership
Discount on SIM
Replacement
Platinum
100%
Gold
75%
Silver
50%
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
o Premium:
Enjoy free stuffs with a new xplore Package2 connection
With every new xplore Package 2 connection, you will get 25 Text SMSs & 25 free
Voice SMSs, and 5 GP branded Ring tones. Subscriber has to use the free content and
VAS within 2 months after activation.
o Price-Off:
450 minutes free!
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.
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:
Grameenphone sponsors International Conference on ICT
Official sponsor of Bangladesh Cricket
Grameenphone sponsor International Trade Fair in Khulna
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:
Grameenphone creates a good image by using promotional tools. Grameenphone
promotes the public relationship by its attractive logo, signs, uniform and others.