BUSINESS PLAN ON CELLCOM LTD.

BANGLADESH

EXECUTIVE SUMMARY:
CELLCOM Ltd. is a fast growing mobile telecommunication. Considering the importance of customer satisfaction, this project was designed to assess the satisfaction level of CELLCOMs subscribers. Although CELLCOM has been operating for 2 years in the market of mobile telecommunication industry, its customers are not fully satisfied with their network services. If CELLCOM does not take care of these dissatisfactions and other company enters the market with similar offers, it will be difficult for CELLCOM to keep remain in the current market. CELLCOM has been successful to build a good image in comparison to the other operators. In other words, CELLCOM has a clear advantage over the competitors. CELLCOM has some additional features in comparison to its competitors. It is playing a vital role to increase the subscribers of CELLCOM. Moreover, CELLCOM subscribers are happy with the low call rate. In spite of this, CELLCOM users are not satisfied with customer care service and network service of the company. Most importantly, a significant portion of the CELLCOM subscribers were found not fully loyal toward the company. CELLCOM connections are not always available. This is especially true for the pre paid service. Sometimes, the subscribers need to pay extra money to get this service. Subscribers need to spend significant amount of time to reach the customer care. In some cases the behavior of the helpline CMs (Customer Manager) is also questionable. If any other company comes up with same sort of services, the CELLCOM subscribers might switch to that company. By increasing base stations and sales and service centers, getting skilled Customer Managers CELLCOM can eliminate the dissatisfactions and thus earn a sustainable distinct competitive advantage to continue their business.

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1.COMPANY OVERVIEW:
CELLCOM, One of the newest telecommunications service providers in Bangladesh, received its operating license in July 2008 and started its service from January 13, 2009. Now, after 2 years of successful operations, CELLCOM is among the famous mobile phone service providers in Bangladesh, with more than 3 million subscribers as of December 2010. CELLCOM is providing services to rural and urban customers across Bangladesh, where mobile telephony is acknowledged as a significant driver of socio-economic development, both for individuals and the nation. At the end of 2010, it had about 2500 base stations around the country with plans to add about 2000 in the following six months. CELLCOMs stated goal is to provide cost-effective and quality cellular services in Bangladesh. CELLCOMs head office is located at 205, Baridhara Lane, Plot- 87, Gulshan, Dhaka. CELLCOM leases its 10,000 square feet head office which has adequate office space to conduct its operations. At some point in the future, management expects to outgrow this office space.

2.GOALS AND OBJECTIVES CELLCOMS MISSION:

Leading the industry and exceed customer expectations by providing the best wireless services, making life and business easier and lead the industry in a responsiveness and flexibility. We exist to help our customers get the full benefit of communications services in their daily lives. Were here to help. We want to build leading-edge-imp-leveraged solution and advanced by our unmatched global infrastructure and leadership in emerging market.

CELLCOMS VISION:
CELLCOMs vision is to be the number one telecommunication service provider in Bangladesh. We want to see ourselves in the top position within next 3 years. We want to promote an environmentally, socially and economically responsible, successful and sustainable mobile telecommunication industry in Bangladesh. CELLCOM aims to achieve its vision by:  Effective industry representation and leadership.  Generating consensus on whole-of-industry issues.  Improving the level of trust between the industry, related industries, key stakeholders and the wider community.

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3.MANAGEMENT HIERARCHY:
Our company has a world class management team with direct knowledge of the industry, extensive research experience, and unique administrative skills. Its team includes MD. Nazrul Islam, John Hoffman (Board of Directors) and Drake Austin (CEO) . Together, they have a combined total of over 15 years experience in the cellular and retail industries. In the future, CELLCOM expects to require a highly qualified CFO, HR manager, additional customer service personnel, additional sales reps, and a public relations manager. Our company will be organized into three primary functional disciplines: Marketing and Sales, Operations and Product development and Finance and Administration. Each will be managed by a senior executive who reports to the Chief Executive Officer. So, weve design our chain of command by setting three level of management- Top level management, Middle level management and First line management. Top Level/ First Level Management: Chief Executive Officer (CEO), Assistant Chief Executive Officer, Chief Financial Officer, Chief Marketing and Sales Officer, Chief Technology officer and Chief Production Officer are the top level managers. Chief Financial Officer, Chief Marketing and Sales Officer, and Chief Production Officer are responsible to CEO and they are to take the major decision in their particular area of function. Middle Level/ Second Level management: Mid level management consists of all large number of managers experienced in their particular field of function. This level of management is very important because they are responsible for implementing the plan. This level of management should posse necessary skill and also sound academic background. Weve planned the mid level management with production manager, service manager, financial manager, accounts manager, marketing manager, sales manager, network manager. They will be responsible to the top level management. First Line Staff: We plan to set up a dynamic, energetic staff line those who will be named as executive. Each functional department will have enough number of executive. This level of management will be heart of the organization because they will carry on the day to day activities of the organization. The output or quality of service will largely depend on how efficiently they can perform. The number of executive will be depended on the nature of function of a particular area.
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This Organogram will give the clear and full view of our management hierarchy Staff Technology Manager Staff Network Manager Staff Staff

Chief Technology Officer

Staff

Staff

Board of Directors

Chief Production Officer

Service Manager

Staff

Staff

Production Manager

Chief Executive Officer (CEO)

Staff

Staff

Chief Marketing and Sales officer

Promotion Manager

Staff

Staff

Marketing Manager Chief Financial Officer

Staff

Staff

Account Manager

Staff

Staff

Finance Manager

Staff

Staff

Organogram of CELLCOMs Management Hierarchy

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4.MARKETING PLAN:
In Telecommunication Company, services and benefits contribute the most to make a product successful. So we will also try our level best to attain customer satisfaction. CELLCOMs core
offering is Telecommunication and Data service. CELLCOM will provide this Telecommunicating and Data service with variations. Our product line will be much deeper than other competitors. There will be

new packages. Those attractive packages will be designed to cater to the needs of the individual
subscribers as well as corporate subscribers. There are already several packages and services currently being offered both Telecommunicating and Data service by CELLCOM. More new will be provided. These are:

TELECOMMUNICATION: Prepaid Package KOTHA Call charge of out going to our operator is 0.49 tk/min and to other operators is 1.20 tk/min. All subscribers will enjoy T&T and ISD incoming and outgoing facility. For this package Special time is applicable. In special time (12 pm to 4 pm) and (12 am to 8 am) a subscriber can be able to talk in a lower rate of 0.30 tk/min to the same operator. AMITY In this package a subscriber can be able to activate 7 FnF numbers and talk only 0.49 tk/min for 24 hours. Call charge of outgoing to other numbers is 0.99 tk/min A call generation charge of 0.30 tk/min will be added in the first minute. All subscribers will enjoy T&T and ISD incoming and outgoing facility also. RATRI Call charge of RATRI of outgoing to same operator is 0.49 tk/min and to other operators is 1.20 tk/min. All subscribers will enjoy T&T and ISD incoming and outgoing facility. RATRI package will give a very low rate in the night and the rate is only 0.20 tk/min. Besides subscribers will have 3 FnF numbers activation. They will be able to talk 24 hours at 0.30 tk/min to the FnF numbers. YOUTH For young generation. Call charge of YOUTH is 0.60 tk/min to any operators 24 hours. Here they will enjoy 4 FnF numbers activation charging 0.25 tk/min for 24 hours.

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MATI Our another prepaid package named MATI will be for the farmers. We are the only telecommunication company which will provide an individual package for the farmers. We will provide the farmers free information about agriculture. So they will be highly benefited and the rate is also less and it is 0.30 tk/min any time anywhere. Their information Hotline is- 111. BUSINESS EXPERTISE Call charge of BUSINESS EXPERTISE to our operator is 1.00 tk/min and to other operators is 1.20 tk/min. All the subscribers enjoy T&T and ISD incoming and outgoing facility. For this package Special time is applicable. In special time, (12 pm to 4 pm) a subscriber will be able to talk in a lower rate of 0.40 tk/min to any operator. In this package a subscriber can activate 4 FnF numbers and can talk only 0.25 tk/min for 24 hours. Community tariff is 0.25 tk/ min. Postpaid Package ALLIANCE Call charge of ALLIANCE to our operator is 0.52 tk/min and to other operators is 1.20 tk/min. All the subscribers will enjoy T&T and ISD incoming and outgoing facility. For this package Special time is applicable. In special time, (12 pm to 4 pm) a subscriber can talk in a lower rate 0.49 tk/min to the same operator. In this package a subscriber can activate 4 FnF numbers and talk only 0.35 tk/min 24 hours. Subscribers can enjoy 1 second pulse from the 1 minute. DATA SERVICE:
st

CELLCOM 3G
We will offer hi speed 3G internet and EDGE connection all over the country. There will be seven packages for 3G and EDGE. In package1 subscriber will have to pay 0.02 taka/kb for browsing. In package 2, subscriber will have to pay 850 taka per month and for that, s/he will have unlimited browsing. In Package 3, subscriber can enjoy unlimited browsing from 12 am to 8 am at a cost of 300 per month. In package 4 subscribers can use 24 hour browsing at a cost of 60 taka. In package 5 subscribers can use 5GB at a cost of 700 taka with a validity of 30 days. In package 6 subscribers can use 1GB at a cost of 300taka with a validity of 30 days. And in package 7 subscribers can use 15 MB at a cost of 29 taka with a validity of 15 days.
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OTHERS There are some other mobile services that we will provide to our customers. They are Call Block- Subscribers can easily block unwanted calls anytime.  Mobile Backup- This service will provide a safe and secure way of string important data.  Missed Call Alert- Through missed call alert users will get notification about the calls that they missed for keeping mobile switched off.  SMS/MMS services- Besides there will be MMS, voice SMS, International SMS, International MMS, E-Billing, Vehicle tracking, Balance transfer, Facebook SMS and many other services.

DISTRIBUTION As we are a new company .Our budget is definitely not that high. As a result, at the beginning we cannot put our own outlets everywhere. So at first we will try have our outlets in the most three important cities like Dhaka, Sylhet and Chittagong. In Dhaka our outlets will be in Gulshan, Dhanmondi, Motijheel and Uttara because most of the educational institutions and corporate offices are there. Besides we will have some temporary outlets on the road so that people can easily visit our outlets and can from there. Not only this, we will also give our product to the retailers so anyone can get them from retail shops. PROMOTION Success of a product is not possible without promotion. So we will also give a lot of importance to promotion. Our promotion ways will beNewspaper: Newspaper is the most effective and common way of advertising. So our main way of promotion will be newspaper so that many people can get to know of our new products and services. Television: Television is another source of promotion but it is very expensive. So we will try to show our advertisement less in television but at the time when everyone can notice it. Billboard: We will also promote our product through billboard. We will use the billboards of busy roads and also near the bus stands so that many people can notice while in traffic jam and waiting for bus.
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Sales Promotion: We will also do temporary sales promotion. At the beginning of our new business we will charge 20% less than the regular price, we will also arrange raffle draw or give prizes through scratch card offer and also free internet service for a certain period of time so that people will get attracted by it. Others: We will also campaign by giving some free SIM cards to some students and some corporate people. If they like our product and service, they will definitely tell others about our features. So it will also be one kind of effective promotion.

5.FINANCIAL PLAN:
Projected Profit and Loss account:
Year 1 Sales Direct Cost of Sales Production Payroll Network expense Total Cost of Sales $837,350 $0 $178,400 $120,000 $298,400 Year 2 $15,320,000 $0 $220,000 $250,000 $470,000 Year 3 $42,235,000 $0 $265,000 $500,000 $765,000

Gross Margin Gross Margin %

$538,950 64.36%

$14,850,000 96.93%

$41,470,000 98.19%

Operating Expenses

Sales and Marketing Expenses Sales and Marketing Payroll Advertising/Promotion Trade Shows Travel $203,850 $270,000 $10,000 $36,000 $540,000 $1,000,000 $30,000 $100,000 $930,000 $2,000,000 $60,000 $200,000 Page | 8

Marketing Collateral & Supplies Publications Demos and Samples Total Sales and Marketing Expenses Sales and Marketing % General and Administrative Expenses General and Administrative Payroll Sales and Expenses Depreciation Leased Equipment Utilities Insurance Rent Other Payroll Taxes Other General Expenses Total General Expenses and and Administrative Administrative Marketing and Other

$21,000 $6,500 $10,000 $557,350 66.56%

$75,000 $20,000 $50,000 $1,815,000 11.85%

$150,000 $40,000 $100,000 $3,480,000 8.24%

$336,000 $0 $36,000 $17,000 $9,000 $12,000 $26,000 $0 $165,198 $0 $601,198 71.80%

$670,000 $0 $290,000 $35,000 $20,000 $25,000 $50,000 $0 $328,900 $0 $1,418,900 9.26%

$905,000 $0 $790,000 $75,000 $40,000 $50,000 $100,000 $0 $483,000 $0 $2,443,000 5.78%

General and Administrative % Other Expenses: Other Payroll Consultants Contract/Consultants Total Other Expenses Other % Total Operating Expenses

$0 $0 $0 $0 0.00% $1,158,548

$0 $0 $0 $0 0.00% $3,233,900

$0 $0 $0 $0 0.00% $5,923,000 Page | 9

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales

($619,598) ($583,598) $22,625 $0 ($642,223) -76.70%

$11,616,100 $11,906,100 $9,500 $2,901,650 $8,704,950 56.82%

$35,547,000 $36,337,000 $0 $9,034,863 $26,512,137 62.77%

Projected Balance Sheet:

Year 1 Assets Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing $64,762 $190,000 $402,333 $0 $1,054,756 $0 $360,000 $36,000 $324,000 $892,539 Year 1 $1,360,000 $326,000 $1,034,000 $11,245,060 Year 2 $3,360,000 $1,116,000 $2,244,000 $38,409,621 Year 3 $140,074 $398,465 $20,000 $10,000 $568,539 $2,890,822 $7,290,239 $20,000 $10,000 $10,211,060 $16,037,499 $20,098,122 $20,000 $10,000 $36,165,621 Year 2 Year 3

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Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth

$0 $254,762 $0 $254,762 $1,337,500 ($57,500) ($642,223) $637,777 $892,539 $637,778

$0 $402,333 $0 $402,333 $2,837,500 ($699,723) $8,704,950 $10,842,728 $11,245,060 $10,842,728

$0 $1,054,756 $0 $1,054,756 $2,837,500 $8,005,228 $26,512,137 $37,354,865 $38,409,621 $37,354,865

6.CONCLUSION:
The advent of cellular technology in Bangladesh has brought immense change in the field of communication. Since its inception in 2009, CELLCOM has done well to enhance its customer loyalty operating as a market challenger in this oligopoly industry. CELLCOM is one of the famous cellular companies in Bangladesh. Their performance and quality of the service mainly depends on their experiences and efficiency. CELLCOM believes in service, a service that leads to good business and good development. Telephony helps people work together, raising their productivity. This gain in productivity is development, which in turn enables them to afford a telephone service, generating a good business. Thus development and business go together. It has segmented the market based on certain clustered preferences deploying multi-stage segmentation approach to meet individual needs of the customers. Launching of its new services would also close its existing service gaps to a great extent ensuring satisfaction and loyalty.

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