A Repot

On
Non-price Competition Tools Used By Cell Phone
Providers in Bangladesh
“A Case Study on Bangla Link Mobile Phone”
(MKT-503)

Date of Submission: April 13, 2010

 A Repot
On
Non-price Competition Tools Used By Cell Phone Providers in
Bangladesh
“A Case Study on Bangla Link Mobile Phone
(Economics: Course code: MKT-503)

Prepared By:
Mahabubul Alam
Id No:41017017
Executive Summary:

1.1 Background Of Banglalink

Orascom Telecom Holding S.A.E. ("Orascom Telecom") or ("OTH") was established in

1998 and has grown to become a major player in the telecommunication market in the
world. .

OTH is considered among the largest and most diversified network operators in the
Middle East, Africa and Pakistan. It is a leading mobile telecommunications company
operating in seven emerging markets in the Middle East, Africa and South Asia having a
population under license of 460 million in total population with an average penetration of
mobile telephony rate across all markets of 29% as at March 2007.

Orascom Telecom operates GSM networks in Algeria ("Djezzy"), Egypt ("Mobinil"),

Pakistan ("Mobilink"), Iraq ("IraQna"), Bangladesh ("Banglalink"), Tunisia ("Tunisiana")
and Zimbabwe ("Telecel Zimbabwe"). Orascom Telecom subscriber number reached
over 56 million subscribers as of March, 2007. OTH continuing growth established a
strong presence in the GSM Association (the world's leading wireless industry
representative body), only four years after its inception.

OTH's Chairman and CEO Mr. Naguib Sawiris was selected to join the GSM
Association’s CEO Board in 2002. This association's members help in promoting and
planning the future of the GSM industry. OTH stocks are traded on the Cairo and
Alexandria Stock Exchange (CASE), (under the symbol ORTE.CA, ORAT EY) and
London Stock Exchange (where its GDR is traded under the symbol ORTEq.L, OTLD
LI). Orascom Telecom is the largest capitalized company on the Cairo and Alexandria
Stock Exchange (CASE).
Mobinil, in Egypt was Orascom Telecom’s first operation. The Egyptian Company for
Mobile Services (ECMS) was granted a GSM license in 1998 and launched the same
year. Mobinil is among Egypt’s five largest companies by market capitalization. It is also
among Egypt’s five most heavily traded companies by value. Mobinil’s network covered
approximately 91% of the total population of Egypt as of March, 2005. "Mobinil Life"
was launched in September 2003 in partnership with sister companies ARPU+ and
LINKdotNET which cater to value added services and internet respectively. Mobinil
offers both prepaid and postpaid packages and as of September 2005, prepaid subscribers
represented approximately 85% of Mobinil's total subscribers.

Orascom Telecom’s operation in Pakistan, Mobilink, started its operations in 1994, and
until early 2001, had a market share of 40%. In April 2001, OTH took over management
control of the company and as of March, 2007; Mobilink served more than 24 million
subscribers, representing a market share of approximately 44.3% of total mobile
subscribers in Pakistan.

Orascom Telecom Tunisie - Limited Company Tunisiana was granted a license in May
2002. Tunisiana exceeded the 3.1 million subscribers, representing a market share of
approximately 46.3% of total mobile subscribers in Tunisia, as of March, 2007.

In January 2004, Orascom Telecom Iraq (OTI) launched its initial phase of the network
IraQna after being awarded the first license for the Central Region in Iraq. OTI is now
serving approximately 2.9 million subscribers with a market share of 32.8% on its
network and is providing state of the art mobile technology. Pursuing its success OTI
expanded its services to the Southern region of Iraq in November 2004 to become the
first operator to deploy its services nationally in the whole country. As of September,
2005, the central region contains over 35% of Iraq’s population, or approximately 9.3
million inhabitants.

Orascom acquired Sheba Telecom as Banglalink in 2002. Banglalink was the last
addition to the GSM companies when, Orascom Telecom (OTH) purchased 100% of the
shares of Sheba Telecom in Bangladesh last September. Orascom Telecom re-branded
and launched its services under "Banglalink" in February 2005. Immediately after the
launch, OTH started its aggressive plans to develop it into a leader in the mobile sector. It
rapidly expanded its GSM network to provide high quality communications services at
affordable prices. Banglalink has 16.8% market share of total mobile subscribers in
Bangladesh with approximately 3.9 million subscribers as of March, 2007.

Orascom Telecom has positioned itself as a leader in the region for its diverse GSM
operations, with various GSM support and Internet operations. One of Orascom
Telecom’s main strategies is to create its own non-GSM subsidiaries to act as a support
for its regional GSM operations. OTH has achieved this by dedicating financial,
technical, and management resources for its subsidiaries. This includes network support
and installation of GSM operations, equipment procurement, handset procurement and
distribution companies, value Added Services, and Internet operations.

OTH is dedicated to provide the best quality services to its customers, value to
shareholders, and a dynamic working environment for its nearly 20,000 employees.
1.2 Banglalink Mission and Vision

 Mission
Banglalink mission is to satisfy all communication needs of the developing markets
which the organization serves. It is company belief that there is viable economic model to
serve emerging markets while availing affordable quality. The organization is racing to
serve the largest possible number of customers, covering the most populous countries in
the world. The organization believes that by positioning ourselves as the primary
provider of communication services. It can

 Vision
To become one of the world’s leading telecom operators providing the best quality
services to the target customers, value to the shareholders and a dynamic, challenging and
fun environment for the employees.

1.3 Culture of Banglalink

Banglalink is employee oriented Telecommunication Company. It believes employees are

human being not machine. Employees of Banglalink are also very loyal with the
organization. Banglalink recruit employee on the basis of six month contractual
agreement. In this agreement an employee can terminate or continue the job within six
month.

The sitting arrangement of MD and other directors are flat that means they sit along with
other employees. This arrangement is helpful in which all employees can accomplish
work within a friendly environment. Office area is free of smoking. Banglalink follow
multi culture in which it practices country of origin culture along with host country
culture (Bangladesh).
 1.4 Organizational Structure

CEO

Deputy
Chief Technical
General Internal Audit
officer
Manager Manager

GM
Store &
IT & Billing Projects Inventory Mgt.

Finance & Company

Accountin Secretary
Administration g

Customer
Sales & Marketing
Care
Manager
Manager

Quality Procurement
Control
Manager
2.0 Non-price competition:

Non-price competition is a marketing strategy "in which one firm tries to distinguish its
product or service from competing products on the basis of attributes like design and
workmanship" The firm can also distinguish its product offering through quality of
service, extensive distribution, customer focus, or any other sustainable competitive
advantage other than price. It can be contrasted with price competition, which is where a
company tries to distinguish its product or service from competing products on the basis
of low price. Non-price competition typically involves promotional expenditures, (such
as advertising, selling staff, sales promotions, coupons, special orders, or free gifts),
marketing research, new product development, and brand management costs.

Firms will engage in non-price competition, in spite of the additional costs involved,
because it is usually more profitable than selling for a lower price, and avoids the risk of
a price war.

Competition among firms that choose to differentiate their products by non price means,
for example, by quality, style, delivery methods, locations, or special services. Non price
competition is often practiced by firms that desire to differentiate virtually identical
products.

More specifically Non price competition can be said, Competition between companies
that involves something other than lower prices. That is, rather than advertising the
lowest price for a product, a company may advertise that is has the best quality, the most
convenience, or even the best branding. Non price competition is especially important
where competition is stiff and companies cannot afford to charge much less than they
already do.

Here some of the non price competition tools used by Bangla link are discussed bellow:
2.1 Logo

The meaning of Banglalink logo is tiger which is national animal of

Bangladesh. Banglalink wants to become the national asset of Bangladesh;
this is why it used the symbol.

2.2 Free Sampling

Bangla link offered misti komola package with sampling orange to the
customers in the cities. This was a different way to reach the people &
touch with their identical product.

2.3 Before & After Sales Service

After Sales service is one of the major tools or techniques applied by Banglalink.
Banglalink establishes many customer service centers in and outside Dhaka City.

We have set the benchmark in customer care with our state-of-the-art

call center, largest customer care network, and a passionate & vigilant
team serving you every single moment.

Banglalink care line offers a dedicated 24 / 7 service to answer all your

queries. 24 hours a day. 7 days a week. Any queries you may have
about:

• subscribing for a new connection

• any form of account information
• coverage details
• product information
• value added services
 2.4 Extensive Distribution

Banglalink segmented their target market

for post paid into two broad categories:
i) Enterprise personal Customer: The
people who use network for personal
corporate activities. Who mainly purchase
the PCO connection?
ii) Small entrepreneur People who do
mobile business.

Banglalink First targeted the small

entrepreneur after obtaining growth
market share they targeted the people who
use network for personal enterprise
packages.

Small entrepreneur are the mainly purchaser of M2M connection. On the other hand
enterprise personal customers are the purchaser of Call and control connection

2.5 Appealing Advertising

Banglalink for the 1st time introduce advertisement that is different in nature and manner.
Their advertisement was awarded for the touching of heart of the people of our country.

Banglalink award winning Advertisement:

Banglalink Ad on Independence Day 2007

2.6 Special Services

Targeting the corporate and SME segments, banglalink

has launched "Banglalink Enterprise" with state of the
art services including GPRS, corporate SMS broadcast,
dedicated customer relationship management, and
customized packages. Banglalink enterprise offers
customized telecom solutions for different businesses as
per their requirements and the objective of banglalink
enterprise is to assist the clients at every step as their
businesses grow. Banglalink also provides services to the
farmers.

Students are also benefited by Bangla link for their music

station, amar tunes.
Banglalink provides services in the health perspective. Any Banglalink operator can dial
789 for help in case of health services.

2.7 Identical Product:

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. Thus "desh" was
launched - the best prepaid package
for making calls to any network.

In addition, a new prepaid package,

banglalink desh "rong" has also been
launched. This package offers
attractive tariff plan for customers who need to talk within the banglalink network.
"Rong" is a Bengali word that means "color" - the objective is to give customers a brand
that they can refer to as colorful and lively. Banglalink desh is already a very popular and
well-liked brand - banglalink desh rong is a brand extension to enrich the brand.

2.8 Delivery of Services

Delivering services to the customers involves decision on the

place and time of the delivery to as well as methods and
channel used.

Banglalink distribute their services to the final customers

through the retail outlet, Bsp (Banglalink service point) etc.
The dealer of the retail outlet get the commission on the basis
of the specific sales proportion.
In addition to Banglalink take security money from their dealer.
2.9 Promotion & Education

No marketing program can be succeeding without effective communication. Banglalink

marketing communication effort is used to perform the following three activities:
a. Providing needed information and advice
b. Persuading target customers of the merit of the services.
c. Encouraging target customers to take action at specific times. (i.e. Influence to
purchase the service)

Usually Banglalink provide their advertising in the newspapers(Prothom Alo, Daily

Star),TV Channels(ATN,Channei,NTV,RTV,ETV,BTV.Channel1),Bill board to promote
their services to the target audiences.

In their advertising Banglalink try to educate their customers about the tariff rate during
the peak period and off peak. Which is helpful to stimulate customer’s behavior to use
network during the period of low demand? The ad also used to highlight the manipulation
of other marketing mix elements to get specific response to the customers. This is why in
their ad Banglalink provide information regarding their service offerings, supplementary
services, dedication of service personnel etc.

Banglalink provided an ad regarding the rules and regulation to get a new connection
and re registration the old packages if it was purchased on before February 28, 2006.It is
also can be considered as educational promotion program.

Banglalink is a media partner of the cricket council, in which it indirectly promotes

and educates the customers (both current and prospective) about the service through the
sponsored one day or test matches.
Banglalink also provide ad to educate different market segment to attract their services.
For instance it is currently providing the Dialogue with “DIN BADOLER PALA” to
attract small entrepreneur. For medium to upper level entrepreneur Banglalink providing
ad dialogued with “BAGLALINK TO GROWTH”.
The following are the samples of various ads of Banglalink broadcasted in different TV
channels to inform customers about the various value added services.

2.10 Physical Environment

The appearance of Banglalink building, vehicles, interior furnishing, equipment, staff

members, signs, printed materials all are the visible cues provide
tangible evidence of a firm,s service quality. Banglalink operate
two core branches which control primary supportive value chain
activities of various zonal offices. All offices are well furnished
through the interior and exterior decoration. All the exterior point
of BSP centre BP centre, distributors offices ,core branches, zonal offices are decorated
by the orange color with Banglalink logo.
Conclusions:

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 is today the 2nd largest mobile
operator in the country. It competes over the market by differentiating its quality, style,
delivery methods, locations, or special services. It is continuously analyzing the market
movements and simultaneously taking initiatives to compete in the mobile industry to
retain their position.
References:

1. Lovelock, C. & Writz, J, Service Marketing, 2004, Fifth

Edition, Pearson Education, Inc.

2. www.banglalinkgsm.com
3. McConnell-Brue, 2002, p. (437-438).
4. www.blinlk.com