Professional Documents
Culture Documents
1 History
Grameenphone Ltd., the largest telecommunications service provider in Bangladesh, received its operating license in November 1996 and started its service from March 26, 199 . No!, after 11 "ears of successful operations, Grameenphone is the largest mobile phone service provider in Bangladesh, !ith more than 2# million subscribers as of November 2$$#. %he idea of providing mobile phone facilit" to rural areas in Bangladesh !as originall" conceived b" &'bal (uadir, !ho is currentl" the founder and director of the Legatum )enter for *evelopment and +ntrepreneurship at M&% . ,e !as inspired b" the Grameen Ban- micro credit model and envisioned a business model !here a cell phone can serve as a source of income. .fter leaving his /ob as an investment ban-er in the 0nited 1tates, (uadir traveled bac- to Bangladesh, after meeting and successfull" raising mone" from a Ne! 2or- based investor and philanthropist 3oshua Mailman, and !or-ed for three "ears gaining support from various organi4ations including Nobel 5eace 5ri4e laureate Muhammad 2unus of Grameen Ban- and the Nor!egian telephone compan", %elenor. ,e !as finall" successful in forming a consortium !ith %elenor and Grameen Ban- to establish Grameenphone. (uadir remained a shareholder of Grameenphone until 2$$6. Basicall" Grameenphone is a /oint venture enterprise bet!een %elenor 76289, the largest telecommunications service provider in Nor!a" !ith mobile phone operations in 12 other countries, and Grameen %elecom )orporation 7:#89, a non;profit sister concern of the internationall" acclaimed micro;credit pioneer Grameen Ban-. <ver the "ears, Grameenphone has al!a"s been a pioneer in introducing ne! products and services in the local mar-et. G5 !as the first compan" to introduce G1M technolog" in Bangladesh !hen it launched its services in March 199 .
5age 1 of 26
1.1.2 Vision
=e are here to ,+L5 .=e e>ist to help our customers get the full benefit of communications services in their dail" lives. =e !ant to ma-e it eas" for customers to get !hat the" !ant, !hen the" !ant it. %heir ma/or values are , !e never forget that !e are tr"ing to ma-e our customers? lives easier, !e !ant to be a partner in the development of our communit" , !e are about deliver", not over promising ; actions not !ords , =e are respectful and professional in regard to all our interactions, both internall" and e>ternall".
5age 2 of 26
1.2 Back ground of the product / service to be covered 1.2.1 "ntro o# t$% &ro'uct
*/uice 7short of digital /uice9 is a "outh based mobile phone plan from Grameenphone. %his is a prepaid pac-age. */uice !as launched in Bangladesh on the 16th of .pril, 2$$A. %he main ob/ective of this brand is to serve the "outh segment of the mar-et. %he product has been speciall" designed to cater the needs of "ouths of Bangladesh. %he : main features of this brand is Music, Messaging and friend. +ver since the launch d/uice has seen a big !arm response from the cro!d. =ithin t!o "ears d/uice Bangladesh had enlisted around 2 million subscribers. <n the 16th of .pril, 2$$ d/uice Bangladesh shed its old logo and put on a ne! logo !hich !as a part of the !orld!ide re;branding process of d/uice. &n 2$$# the" adopted a ne! brand message that is BBrea- CreeD.
1mileE %his is a mobile to mobile prepaid pac-age for those people !ho !ant to
control hisFher phone bill. B" using this pac-age an"one can call an" mobile number inside the Bangladesh.
5age : of 26
1mile B%)LE %his is the e>tended version of 1mile. %his is also cost saving
prepaid pac-age. %he onl" difference is, b" using this pac-age an"one can call to an" mobile and land phone number both national and international.
GploreE
%his is a post paid connection for those !ho are not bothered about the
phone bill. &t provides national and international phone call facilit" to an" mobile and land phone. Business 1olutionE %his is a complete, 'ualit" business communications service provided b" Grameenphone H designed especiall" for the business communit" in Bangladesh.
1.2.4 )u*stitut%
%here are no direct substitutes of */uice in Bangladesh as it is the onl" "outh oriented mobile service brand. But !e can consider some indirect substitutes on the basis of call rates and offerings H Banglalin- *esh @ang pac-age =arid CnC pac-age %eletal- 1hadheen 5ac-age
5age 6 of 26
)mil% 1)T2 ,nation-i'% an' int%rnational mo*il% an' lan' lin% conn%cti+ity/0
%his pac-age also contains the same attributes of 1mile but it also has some elaborated leverage of international calls and land line connectivit". D3uic% ,a yout$ *as%' mo*il% to mo*il% conn%cti+ity -it$in Ban.la'%s$/0 Grameenphone launched the brand */uice in 2$$AK first ever B2outhD brand in Bangladesh. %he main ob/ective of this brand is to serve the "outh segment of the mar-et. %he product has been speciall" designed to cater the needs of "ouths of Bangladesh, both urban and rural. */uice has various features designed for "ouths, namel"K special rate for */uice communit", Gtra Lhatir, 7discounts at different outlets9.*/uice also arranges
5age A of 26
Bangladesh 7a!areness program9.%he d/uice brand is positioned as the B2outh BrandD. %he : main features of this brand is Music, Messaging and friends. @ecentl" the brand !as refreshed !ith a ne! brand message BBrea- CreeD. .nd there is onl" one pac-age under postpaid plan.
including 1M1, MM1, =elcome %unes 7@ing bac- %ones9, Moice 1M1, 1M1 5ush;5ull 1ervice, Moice Mail 1ervice 7MM19, and Ca> and *ata among others. Grameenphone !as the first mobile operator in Bangladesh to offer +*G+ services to its subscribers.
5age 6 of 26
5age of 26
operation around the countr" during the "ear, crossing the 1$,$$$ base station milestone in the process. &n addition, the entire Grameenphone net!or- is +*G+FG5@1 enabled, allo!ing its customers to access high;speed &nternet from an"!here !ithin the coverage area.
Failur%0
Grameenphone didnIt face an" substantial failure in Bangladesh. But to some e>tend it has hampered its good!ill b" involving itself in illegal Mo&5 operations.
5age # of 26
5o+%rnm%nt
Government pla"s a significant role in the telecommunication industr" b" putting restriction on the net!or- s"stem the companies should use. &n addition, ever" offer a compan" ma-es to its customers is !atched b" the government. 5reviousl" government has banned the companies from offering free calls especiall" after midnight. %hese facts pla" important role in */uiceIs operation as !ell.
6ultur%
@ecentl", due to globali4ation and influence of !estern culture, our "oung generation is becoming more fun-" and !esterni4ed in ever" aspect of their behavior. %hatIs !h" the" are using mobile phones more and more. %he" prefer products that resemble uni'ueness, so the" are getting interested about 1&M card services that are full" designed and created according to their need. Not onl" the "outh but other age people are also getting used to mobile phones. %his cultural change is pla"ing a significant role in telecommunication business.
D%mo.ra&$y
*emographic factors li-e age, se>, income etc. are ver" -e" issues in influencing consumer behavior regarding mobile phone service. 0suall", the "ounger generation people are more prompt in using mobile phones than the elders, !hereas male are more prone to have mobile phones than females. &n addition, &ncome has a big impact on mobile phone use as people !ith higher income are more inclined to use phones rather than the lo!er income people.
5age 9 of 26
5age 1$ of 26
9ni:u%n%ss0 */uice B+>tra )ardD !as an influencing factor for earl" */uice users. %his card !as given as a discount card or e>tra facilit" card at some shopping malls, super shops, restaurants, different service providers etc. 6ustom%r )%r+ic%0 .vailabilit" of */uice 7Grameenphone9 customer service, recharge card and fle>i load services are also another influencing factor.
2.2.1.4 Lifestyle
0suall" the lifest"le of "oung generation is uni'uel" different from the other age groups. %he" usuall" have lots of friends so fre'uenc" of communication through mobile phone is ver" high. %he" !ant to lead a trend" lifest"le and !ant to tr" something ne!. .mong the "outh there is a considerable number !ho li-e to use mobile phone more at night, usuall" after midnight. %he" li-e to move around, en/o" life and chat !ith friends. %heir lifest"les reflect the s"mbol of "outh, !ho can en/o" life and have a tendenc" to breafree from the traditional vie!s and culture.
5age 11 of 26
5s"chographic segmentationE */uice mainl" segments the mar-et based on ps"chographic lifest"le, !hich means the" consider their consumers life st"le to determine the segment. */uice is for those, !ho !ant to e>perience something uni'ue and trend". %his sort of nature is mainl" found !ithin the "oung generation !ho !ants to be different among all around them.
5age 12 of 26
=ar.% mar<%t )$ar%E &n an overpopulated countr" li-e Bangladesh "oung generation contributes as a large chun- of the overall population. &n the Bangladeshi perspective it is huge mar-et and G5 is the onl" firm operating in this segment and d/uice has a large mar-et share in this segment. %his is a reall" important achievement for */uice brand. Bran' r%&utation0 */uice recentl" has come up !ith a ne! brand message that is Bbrea- freeD. &t is a ne! effort to refresh the brand. 5rior to that */uice is alread" popular in the "oung for the effort for creating a distinct life st"le. %he brand is 'uite successful in creating a uni'ue communit" named as */uice communit". &t e>emplifies the success of the brand. 1ro'uct #%atur%s > &romotional tactics0 %he distinct product feature is ver" much responsible in attracting the target customer to the brand. %he features are craved in such a !a" that "oung generation can reall" ma-e use of it. . large portion of the */uice promotional effort goes for publicit" such as 1ponsoring concert, music talent hunt program etc. %hese tactics are reall" successful to dra! "oung generationIs attention to the brand.
3.2 ?%a<n%ss%s
6riticism0 1ome people thin- that */uice is a brand directed to the unproductive segment of the population. &t creates an e>tra burden on the parents. 1ome of the product features of */uice such as a ver" lo! call rate from 12.$$ am .$$ am created 'uestion about the moral validit". "n%##%cti+% &ricin.0 it is huge setbac- for d/uice as its call rate for d/uice;G5 72t-Fmin9 is higher than normal G5;G5 call rate 71.At-Fmin9.
3.3 (&&ortuniti%s
Lots of opportunities still e>ist for */uice including span of the mar-et, ma-e better relationships !ith subscribers etc.
5age 1: of 26
)&an o# t$% mar<%t0 */uice captured most of the "oung generationIs e"es. But all are concentrated on urban or metropolitan centric "oung people. %here are a huge number of "oung people !ho does not live in the urban areas !ho are mostl" untouched. */uice can start their activities to capture this segment as !ell b" speciall" tailored promotional campaigns. B%tt%r r%lations$i&s -it$ su*scri*%rs0 &t is said that service companies live on their relationship !ith customers. */uice can start activities li-e installing separate B*/uice service centreD to ma-e better relationship !ith the users. %his e>tra importance can help them to be closer !ith the users. 6)70 %he mother compan" of */uice brand is engaged in various )1@ activities but the brand itself is engaged comparativel" less e>cept for helping in arranging concerts to raise charit", roc- band search etc. %he relationship !ith the societ" can get closer b" broadening the hori4on of */uiceIs )1@ activities.
3.4 T$r%ats
%here are also threats along !ith opportunities in the mar-et. 1ot%ntial com&%titors0 %elecom industr" is not much saturated "et but the competitors li-e .-tel, Banglalin-, and =arid are al!a"s coming !ith their ne! attractive offers. .s d/uice is the onl" "outh centric brand, other telecom companies might target them as !ell. %his is reall" a big challenge for even a brand li-e */uice to -eep on a consistent trac- of success. "ma.%0 */uiceIs all promotions are based on Broc-D life st"le !hich is ver" much !elcomed at the "oung generation but most of the times hated at the parents level. %his can have significant negative conse'uences as most of the Bangladeshi "outhIs bu"ing choice is usuall" directed b" the parents. (n.oin. &olitical insta*ility0 %here has been a political instabilit" going on in Bangladesh for the past fe! "ears. .s all service companies rel" on their offers and treatment of the clients, the current political situation might hamper GrameenphoneIs service activities in a !a" that the subscribers ma" not get !ell treated sometimes. Cor an e>ample, a shortage of B)redit @echarge )ardD ma" occur during long term stri-e. 5age 16 of 26
)trat%.y0 =ith the alread" e>isting 2.# million subscribers, */uice is planning to gain 1. million more customers !ith its ne!l" promoted fresh loo-. .s the "oung
5age 1A of 26
generation al!a"s !ants to be one step ahead on ever" aspect, */uice is planning to bring ne! features li-e OMobile %MI, :rd generation 7:G9 mobile services in the "ear 2$$9. %his !ill not onl" increase sales but !ill also help to increase the profitabilit" and capture more "oung subscribers. */uice is mainl" targeted to the urban "outh but as the urban mar-et is alread" saturated, */uice is planning to move to the rural "outh !ithin 2$$9 !ith ne! promotional offers, reduced tariff plans and bundled benefits speciall" tailored to the rural "outh. %his !ill help */uice to gain a vast amount of rural "outh as subscribers and as a result their total number of subscribers !ill also increase to the target level. To &romot% t$% *ran'8s a-ar%n%ss *y 1 % -it$in D%c%m*%r 2 1 . )trat%.y0 +nerg", attitude and aggressionPall the things the "outh loves to have, !ith this in mind, */uice is planning to promote their talent hunt program O*@oc-starI to ever" corner of Bangladesh to scoop out and nurture promising rocmusicians from all over Bangladesh. %his !a" */uice is planning to reach the "oung generation all over the countr" and create a!areness at a large scale. %his !ill also help promote their image as a promising "outh brand. %he" are also planning to spread the OLno! Bangladesh tourI to the farthest corners of the countr". %his !ill spread the brandIs image as a brand that cares for the countr" and its people and !ants ma-e it better !ith the "oung generation. 7%ac$ 6 % o# t$% tar.%t custom%rs -it$in D%c%m*%r 2 1 at a 1 % lo-%r cost )trat%.y0 %o reach the highest number of target customers !ith a short span of time */uice is emphasi4ing on mass advertising rather than distributed advertising because mass advertisements !ill help them to get a share of mind !ithin a short time. 5rint ads are the best !a" to reach highest number of target customers in Bangladesh as television is not available in all part of the countr" but ne!spaper is and this is the onl" media vehicle that !ill sta" in the consumers reach. */uice is mainl" targeted to the urban "outh !ho lives in the ma/or cities and to!ns for that the" used onl" ma/or dailies li-e 5rothom alo and *ail" 1tar, but no! the" are planning to use other
5age 16 of 26
prominent dailies too. =ith the e>isting channels !ith highest %@5 li-e O)hannel iI, ON%MI, */uice is planning to target all the channels li-e O@%MI, OBangla visionI so that the" can not onl" grab most of the air time but can also grab most of the consumers mind. No! a da"Is CM radio channels li-e @adio foorti, @adio toda", @adio aamar are getting ver" popular among the "oung generation. */uice is planning to air advertisements on radio before, during and after the "outh oriented programs !hich !ill cover their e>act target customers at a cheaper price.
5age 1 of 26
da"s the ads are shrin-ed to less than 'uarter page but the ads remain in the : rd page. %hen again after a fe! da"s, the ads are replaced to Ath or graduall" to an" other page. A'+anta.%s0 5ublished in a large number of copies. 1o ma>imum coverage can be achieved. 0nli-e Broadcast media, it can be seen at the readerIs o!n convenience. @e'uires less time to prepare the ads and cost of preparation is considerabl" lo!er than broadcast media. Disa'+anta.%s 1cope of visual presentation is limited in the ne!spaper ads. No auditor" effect.
5age 1# of 26
promotion is ne! and 1A seconds ads !hen the promotion gets a bit aged. =hich %M channels are to be selected to out advertisements is based on %@5.
A'+anta.%s0 %here is more scope to be creative in television than in an" other media as it supports the creativit" !ith audio and visual impact. %his ma-es the ad more meaningful as motion, tone, image ever"thing is demonstrated. .nother !a" of ma-ing target customer !atch the ad is b" giving caption underneath !hile program is running especiall" in sports time. +ver"one at some point of time !atch television so !ide coverage is assured so the spending on television is definitel" effective and the cost per vie!er is ver" lo!. %elevision provides a faster !a" of communication of the message of the promotion. Disa'+anta.%s o# usin. t%l%+ision ar%0 &t is ver" e>pensive to place an advertisement on %M as the cost of bu"ing air space and time is involved and the ma-ing of ad !ith proper theme is also ver" e>pensive. %he most undesirable problem that television ads face is the 4apping problem. %hat is as soon as the ad starts, channels are changed. No! air time is given more to commercials other than to programs, !hich is -no!n as clutter problem. Cor this reason %M is losing its appeal.
7a'io
.nother broadcast media that */uice uses is the radio. &t is a ne! media vehicle for them but it is becoming effective as there are some ne! and popular CM channels !hich are grabbing listenerIs attention. %he" allocate A8 of their budget to it. &t transmits ads in the private radio channels li-e @adio %oda", @adio Coorti, etc. Method of determining fre'uenc" of the ads on both %M and @adio is similar. 5age 19 of 26
A'+anta.%s &mportant medium for communicating !ith the target mar-et. %he number of radio listeners is increasing rapidl" ever" "ear due to the emergence of CM channels. &t is much less costlier than television &n man" cases it has been seen that radio can reach the remotest of regions !here television cannot reach. %his is because in man" parts of our countr" it has been seen that %Ms are not available and so radios are the onl" means of spreading the message. Because of the lo!er cost manufacturers can afford to run their advertisements more fre'uentl" on radio compared to %M.
Disa'+anta.%s 5roducts cannot be demonstrated or sho!n as a message can onl" be spread using audio techni'ues. 1o no visual effects. Lesser scope for sho!ing creativit" than %M.
5age 2$ of 26
)%l%ctin. t$% 1oints &nside big cities, */uice puts large billboards at the turning point of the roads and beside the roads from !here the" can be seen easil" b" a large number of vie!ers. */uice also puts billboards in the ma/or points of high!a"s !here travelers stop or slo!s do!n speed. A'+anta.%s0 Billboards are ver" good for dra!ing the attention of people. Because people !ho pass through the street usuall" canIt be bus" doing an"thing else other than to sitting in the vehicles, especiall" !hile in /amK billboard is a good !a" to dra! their attention at that time. &t helps them to remind the customer all the time that */uice is al!a"s there for the customers. &t also helps to create brand a!areness !hich is a ver" important thing to increase the sale and to create favorable brand positioning. Geographical selectivit" is also possible b" placing the billboards in locations preferred b" the compan". Disa'+anta.%s0 5eople usuall" do not get time to read all the information given on the billboards. Billboards are e>posed to all the people !ho are passing through the road, it results high !aste coverage for !ho are not the target customers of */uice.
4.2.1.4 (t$%rs
*/uice sometimes gives posters, fla"ers, paper caps, papers fans during festivals li-eK 5ohela boisha-h, MalentineIs *a", 5ohela falgun etc. %he" have also branded some buses that roam around *ha-a cit". A'+anta.%s0 5rovides an eas" but effective !a" of creating brand a!areness. 5rovides effectiveness in terms of cost, time, and placement.
5age 21 of 26
)an be given an"!here to inform people about the product or an event organi4ed b" */uice.
Disa'+anta.%s0 Limited scope of auditor" effect. )ustomers ma" pass a!a" !ithout even loo-ing at the items.
4.4 Analysis o# t$% A'+anta.%C'isa'+anta.%s o# maintainin. t$% &ro.ram in $ous% or usin. a.%ncy
.n e>ternal advertising agenc" handles most of the */uice?s mar-eting communication. .s for promotional mi>, all sorts of media are used for */uice, li-e an" other brand in Grameenphone. But, more focus is also given on media, !hich are preferred b" the target segment. 1ome focused campaigns li-e, @3 selection in universit" campus, *roc-star music competition etc are being carried out. %he leading dailies are preferred for press advertisement. +>E 5rothom alo, *ail" 1tar. Billboard placing is decided based on the 5age 22 of 26
strategic location of the billboard, certain factors are ta-en into consideration, li-eK Location, %arget audience etc. A'+anta.%s o# usin. outsi'% A' A.%ncy %he" can provide the clients !ith the services of highl" s-illed individuals !ho are e>perts in their respective fields for the advertising campaign. .n advertising agenc"Is staff includes a collection artists, !riters, media anal"sts, and researchers etc, !ho have the specific s-ills, -no!ledge and e>perience to carr" out the /ob effectivel" and efficientl". %he" can provide an ob/ective vie! point of the mar-et and its business that is not sub/ect to internal compan" policies, biases or other limitations. %he" have more varied perspectives and greater fle>ibilit". Cle>ibilit" is greater because the compan" can dismiss the agenc" if the" are not satisfied. <utside agencies have the BinsideD -no!ledge 7-no! the BinsD and BoutsD9 of the mar-et and are able to give a better future predication about mar-et trends. Disa'+anta.% o# usin. outsi'% A' A.%ncy <utside ad agenc" can be ver" e>pensive %he" ma" lac- the -no!ledge and understanding of the mar-et. %he" ma" not be able to conve" the message the !a" the compan" !anted it to be communicated. .s compan" does not have tight control over the outside agenc" 7as it !ould have if it used an Bin;houseD agenc"9 it !ill be difficult for the compan" to coordinate promotions !ith the firms overall mar-eting program according to the compan"Is vie!s and !ishes. %here ma" also be the threat of Bconflict of interestD;the outside agenc" ma" have !a" of doing things that is different from the compan" itself. *espite the disadvantages mentioned above of using an BoutsideD agenc", for the promotion of d/uice, it !ill be comparativel" better for Grameenphone to !or- !ithFhire an BoutsideD agenc". &t is because outside agencies are much more fle>ible but cost
5age 2: of 26
effective than Bin;houseD agenc". G5 has developed good relationship !ith its BoutsideD agenc" li-e Gra"F.siaticF.dcomm and the" !or- as a team. %hese agencies understand the needs and specifications of G5 and so does their !or- !ith more dedication.
5age 26 of 26
5age 2A of 26
,.2 -ecommendation
%he positioning strateg" and the total &M) campaign of */uice portra"s "oung people !ho li-e roc- music, chatting and hanging around !ith friends. %oda" there are man" "oung bo"s and girls !ho are doing various productive activities li-e coming up !ith their o!n business plan, inventing ne! technologies and soft!are. .s a brand that represents solel" "outh the" should also concentrate on "oung people !ho are doing these productive activities. 2oung generation li-es to have fun in their life but along !ith that the" also have to ta-e some responsibilities. */uice can pla" an important role in guiding them to!ards their responsibilities. %he" can sponsor various talent hunt programs other than *roc-stars !hich !ill emphasi4e on other parts of life. .nother thing is most of our parents do not feel comfortable !ith their school going childrenIs tal-ing over phone late at night. 1o rather than targeting customers of belo! 1# "ears the" should s!itch their target mar-et to 1# above people.
,." *onclusion
&f */uice can improve its overall &M) campaign and give emphasi4e on rural "outh and "outh representatives !ho are doing productive !or- it can confidentl" hope to achieve its long term mission. ,aving gained an in;depth loo- into the promotional activities of */uice, !e can conclude that the" have been 'uite successful !ith the brand and repositioning of the brand. ,o!ever, still there is a 'uite huge untouched mar-et for mobile phone service providers that can be a big chance for */uice to prove their credibilit". %o be more dominant and successful in this industr", */uice must have a good amount of mone" for their Mar-eting and 5romotion budget !hich !ill ta-e them !a" ahead from !here the" are no!. =e thin- that emphasi4ing more on mar-eting activities along !ith promotion as a means to their success !ill definitel" bring good results for */uice in the near future.
5age 26 of 26