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Methodology

Origin of the study:

The report is done as a part of the research of the course MKT 201 (Marketing
Management). The report focuses on Banglalink as we found much interest in the
flourishing telecom industry.

The research paper is prepared for Mrs. Sadia Shabnam lecturer of Business
Administration Dept. at East West University. This research is prepared during the
semester Fall-2008 and would be submitted in the same semester.

Research Method:

The research paper is made focused on the data collected from different sources.
Data was mainly obtained from internet and marketing department of Banglalink.

Limitations:

Some confidential factors were excluded in this study. The employees did not share
the company’s secret with others which might have impeded data collection.

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Telecom Industry

Telecommunication:

Telecommunication links via satellites are bringing about revolutionary changes in


the fields of communication. The barriers of spaces and time have totally collapsed.
Not very long ago it took days to communicate to someone through a letter but new
STD and ISD facilities have made communication an instantaneous process. The
world appears to have contracted or been squeezed into anyone in any part in the
world.

What Telecommunication Marketing Is:

We all know the definition of Marketing is, “It’s a process by which individuals and
groups obtain what they need and want by creating and exchanging products and
value with others”. So we can say that telecommunication is process which telecom
company or operator’s presents their products and services. Telecommunication has
a great role in modern economy and society. Without it we can’t thing about the
prosperity of the society. Now-a-days in most of countries telecom industry
contributes a huge share of national income. Telecommunication makes the whole
world as a global village. So people can communicate with each other from
anywhere of the world.

Mobile Phone scenario in Bangladesh:

Bangladesh has the lowest telephone penetration rates in the world and even in
South Asia. According to a report by the International Telecommunication union
(ITU), only 1.56 among 100 people of Bangladesh own telecom facilities. The
telecommunication industry in Bangladesh is composed of six players. Bangladesh
Telecom Limited was the first entrant in the market back in 1989 when it was
awarded a license to operate cellular. Since then it has been renamed to Pacific
Bangladesh Telecom Ltd. and given the Brand name Citycell Digital to its cellular
service. Grameen Phone, Aktel, Banglalink, Teletalk and Warid have entered the
industry with various changes in between.

In the past 4 years the market has more than doubled, growing from 1.5 million
subscriber in early 2004 to 38.93 million at the end of 2011 and up to November
2008 it crossed the 30 million subscriber base.

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Company History

Orascom Telecom Bangladesh Ltd.

Type Subsidiary
Founded 1999
Tiger House, House # SW(H)04,
Gulshan Avenue, Gulshan
Headquarters
Model Town, Dhaka,
Bangladesh
Area served 62 districts and 447 thanas
Key people Rashid Khan, CEO
Industry Telecommunication
Products Telephony
Revenue Tk.1300 million
Parent Orascom Telecom S.E. Egypt
making a difference
Slogan
onuvutir network
Website http://www.Banglalinkgsm.com

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 percent. 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 entered the market with a promise of making mobile phone affordable for
people. This promise was kept and Banglalink was the first operator to introduce a
flat rate for all calls (inside own network and others operators) for the convenience
and ease of customers. Thus “desh” was born – the best prepaid package for
call any network. The flat rate for desh (one rate all throughout the day for any
operator) is taka 1.45/min and there are 3 FnF (friends and family) – to any operator.

Banglalink also ladies, first! – The only telecom package that caters to
communication needs of women of Bangladesh. Ladies, first! Revolves around the
concept of community based communication where woman to talk certain numbers

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mostly, to maintain a perfect balance between professional and personal priority.
Hence ladies, first! Offers 4 FnF and per second pulse after 20 seconds from the first
minutes at Banglalink numbers.

Targeting the corporate and SME segments, Banglalink launched “Banglalink


enterprise” with state of art services including GPRS, corporate SMS broadcast,
dedicate customer relationship management, and customized packages. Banglalink
enterprise offers customized telecom solutions for different business as per their
requirements and the objective of Banglalink enterprise is to assist the clients at
every step as their businesses grow.

Throughout the year, Banglalink continued offering products and services


approaching different consumer segments with distinct communication needs. In
August, 2006, Banglalink became the first company to provide free incoming calls
from BTTB for both postpaid and prepaid connections

Banglalink focused heavily on enhancing service and quality during 2006. These
enhancements were done in terms of network quality and customer service. There
was aggressive improvement of indoor coverage, and wherever necessary,
especially in-building solutions were installed in case of enterprise customers and
corporate clients. To provide better customer service, a new expanded state of the
art call center has also been established. At the end of the 2006, there has been a
six customer care center and 63 franchise centers across the country attending
various customers with different queries.

Banglalink subscriber base grew by a hefty 253 percent in 2006 while the overall industry
rose by almost 135 percent during the period, says a press release commenting on Banglalink
phenomenal growth. Rashid Khan, the CEO, said “in less than two years Banglalink has
established itself as a reliable, innovative and customer focused mobile operator. It is fully
geared and committed to maintaining the same momentum and growth in future”.

Company Background

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


established in 1998 and has grown to become a major player in the

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telecommunication market.
OTH is considered among the largest and most diversified network operators in the
Middle East, Africa, and South Asia, and has acquired in early 2008 a license to
operate mobile services in North Korea. Orascom Telecom is a leading mobile
telecommunications company operating in six emerging markets having a population
under license of 430 million with an average penetration of mobile telephony across
all markets of approximately 44%. OTH operates GSM networks in Algeria (Djezzy),
Pakistan (Mobilink), Egypt (Mobinil), Tunisia (Tunisiana), Bangladesh (Banglalink)
and Zimbabwe (Telecel Zimbabwe). OTH had exceeded 77 million subscribers as
of June 2008.

Orascom Telecom Bangladesh Ltd. was granted license in 1989 to operate in the
rural areas of 199 upazilas and later they were also allowed to extend to cellular
mobile radio-telephone services. In July, 2004 it was reported that Orascom Telecom
is set to purchase through a hush-hush deal the Malaysian stakes in Sheba
Telecom, as it had failed to tap the business potentials in Bangladesh mainly due to
a chronic feud between its Malaysian and Bangladeshi partners. An agreement was
reached with Orascom worth $25 million was finalized in secret. The pact has been
kept secret for legal reasons, considering financial fallout and because of the feud.

The main reason for the undercover dealing was because the existing joint venture
agreement between the Bangladeshi and the Malaysian partners dictates that if any
party sells its Sheba shares, the other party will enjoy the first right to buy that.
Integrated Services Ltd (ISL), the Bangladeshi partner, was being 'officially' shown
as purchasing the shares held by Technology Resources Industries (TRI) of
Malaysia for $15 million. ISL then paid another $10 million to Standard Chartered
Bank to settle Sheba's liabilities. Sheba had a base 59,000 users, of whom 49,000
were regular when it was sold.

In September, 2004 Orascom Telecom Holdings purchased 100% of the shares of


Sheba Telecom (Pvt.) Limited (“Sheba”). It was acquired for US$ 60 million and re-
branded and launched its services under “Banglalink” in February, 2005. Banglalink’s
license is a nationwide 15-year GSM license and will expire in November, 2011.

Banglalink is the second largest cellular service provider in Bangladesh. As of


February, 2008, Banglalink has a subscriber base of 7.88 million. It is a wholly

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owned subsidiary of Orascom Telecom. Banglalink had 1.03 million connections until
December, 2005. The number of Banglalink users increased by more than 253 per
cent and stood at 3.64 million at the end of 2006 and ended 2007 at 7.1 million
subscribers’ base, making it one of the fastest growing operators in the world.

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SWOT Comparison Sheet

Strengths My Company Competitor A Competitor B Competitor C


Banglalink Grameen Warid Aktel
Phone Telecom
What are your Strong market Network Upgrade VAS marketing
business communication & network
advantages? effective
distribution
strategy
What are your Strong market Network Upgrade VAS marketing
core communication & network
competencies? effective
distribution
strategy
Where are you For airtime sale For airtime sale For airtime sale For airtime sale
making most
money?

What are you Effective & Network capacity Lowest call rate Lowest call rate
doing well? lowest call rate with outgoing
bonus

Competitor Information

7
Web Empl Annu- Reve- Net Asset Liabili Busin Stoc
address
Oye al nue Inco- ties ess k
Weakness My Company Competitor A Competitor B Competitor C
es Sales (Grameen me (Warid Telecom) Value
(Aktel) Valu
Phone) e

My
What areaswww. High 2500
cost 140 Lowest 140call rate
50 High560 200
cost related 800
High costN/A
Company
are you related activities activities million
related
Banglalin million million millio million million
avoiding? activities
k n
Where do Network New technology Network Service
.com
you lack
resources?
Competit www. 5000 310 310 110 900 300 1400 N/A
orWhat
one are you Less coverage millionBy losing
millioncurrent
(Gramee grameen Millio Less coverage
million million by losing
million
losing subscriber n old/permanent
n Phone)
money?Phone. customers

What are youcom Some admin Gaining proper Network Service


doing poorly? related matters customer customer
Competit www. 1500 70 70
satisfaction 20 250 150 200 N/A
or Two
waridtel.
What needs
(Warid million million
Interdepartment Feel the millio million million Better
Network million
customer
improvement
Telecom) al customer needs n coverage service
com. bd
?
issues
Competit www. 2000 110 110 40 400 200 500 N/A
or Three
(Aktel) aktel. million million millio million million million
n
com

SWOT Comparison Sheet

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SWOT Comparison Sheet

Threats My Company Competitor 1 Competitor 2 Competitor 3


(GP) (Warid) (Aktel)

Obstacles to Lower ARPU


overcome? market

Aggressive GP Banglalink Grameen Grameen


competitors? Phone Phone

Successful GP Banglalink Grameen Grameen


competitors? Phone Phone

Negative Yes Yes Yes Yes


economic
condition?

Government YES Yes Yes Yes


regulation?

Changing YES Yes Yes Yes


business
climate?

Vulnerabilities No No No No
?

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SWOT Comparison Sheet
Opportunities My Company Competitor A Competitor B Competitor C
(Grameen (Warid (Aktel)
Phone) Telecom)

Niches that Network Lower Call Network Network


competitors Rate Coverage
are missing?

New 3G 3G 3G 3G
technologies?

New needs of Wi-Fi Wi-Fi Wi-Fi Wi-Fi


customers?

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Product and Services
Bangladesh offers a number of products and value added services to its valued
subscribers. These attractive products and services are designed to cater to the
needs of the individual subscribers. We can divide all of these products into four
categories; these are-

• Pre-Paid
• Post-Paid
• Banglalink Enterprise
• Banglalink CU

Under these four categories there are several classifications based on the tariff plan
and usage.

Types Packages
Pre-paid Desh
Desh rang
Ladies first
Post-paid Personal package 1
Personal package 2
Personal call and control
Banglalink enterprise Enterprise corporate
Enterprise SME
Enterprise personal

Banglalink CU CU Std.
CU call and control

Pre-Paid Products:

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Prepaid is a system where subscribers pay for their phone calls in advance. Prepaid
gives subscriber the freedom to use their mobile within their budget. It is an excellent
way to speak your language.

The products, Banglalink Prepaid has network mobility feature which helps a
subscriber to move around where Banglalink has its coverage.

Ladies, first!-

Banglalink ladies, first! Is the only telecom package that caters to communication
needs of women of Bangladesh? Ladies, first! Revolves around the concept of
community based communication where women need to talk to certain numbers
mostly, to maintain a perfect balance between professional and personal priorities.
Hence ladies, first! Offers 1 second pulse, 4 FnF and the time band of ‘your time’ has
been extended from 7 am-5pm so that customers can talk at even lower rates to
desired numbers.

LADIES TARIFF PLAN


Outgoing
Peak (7 am-11 pm)
Banglalink to Banglalink Tk. 1.79/min
Banglalink to other mobile
Tk. 2.00/min
operators
Off peak (11 pm-7 am)
Tk. 0.25/min
Banglalink to Banglalink (from 11 pm-12 am Tk.
0.89/min)
Banglalink to any mobile Tk. 0.89/min
FRIENDS & FAMILY (4 Numbers from BL-BL)
12 am to 5 pm Tk. 0.25/min
5 pm to 12 am Tk. 0.79/min
SMS
Banglalink to Banglalink Tk. 0.49/SMS
Banglalink to others Tk. 1.00/SMS
Ladies first! 616

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1) ONE second pulse-first time ever in prepaid connections in Bangladesh :
banglalink has introduced 1 second pulse for the first time in the prepaid market
through ladies, first! All ladies, first! Customers will enjoy this new benefit.

2) Late night rate until 9am: Only banglalink ladies first offer subscribers late night
rate facility even during the peak time. The rate is a 0.99 paisa/min-banglalink to
banglalink.

3) Bonus on Incoming: Banglalink prepaid ladies, first! Customers (m2m and


standard) now get bonus talk-time for outgoing calls upon receiving calls. A customer
will receive 20% free talk-time in a month based upon the calls received in the
previous month.

4) Lifetime Validity: lifetime validity on prepaid account gives a customer the benefit
of receiving incoming calls and staying connected forever. To get lifetime validity, a
customer has to recharge his/her pre-paid account with a minimum amount of taka
10/- or above (via scratch card or -top up).

A new ladies, first! Connection will cost:

* Taka 450 (m2m)-with taka 20 FREE talk time

* Taka 499 (standard with TNT incoming FREE)-with taka 20 FREE talk time

Desh and bonus prepaid customers can also migrate to desh for free by sending an
SMS LF to 210. There is no cost for 1st migrating to desh but bonus customers will
not be able to migrate back.

• Customers of desh, regular prepaid may migrate to ladies, first! For the first
time for FREE. After that any migration to any other prepaid package will cost tk
30/-
• To migrate, SMS “LF” to 210
• Migration to ladies, first! Will take 48 hrs to be effective and customers will get
a confirmatory message of migration
• FnF are only applicable for Banglalink numbers
• Customers can set FnF for free in the following way
- Go to new message option
- Type the desired number that subscribers want to set as FnF
- Send it to 3300
• To set the rest of FnF, follow the same procedures
• This is a limited time offer
• For more information call customer care at 121 and 0191-310900.

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• Conditions apply
• Vat Applicable

Customers of this package will enjoy discount in the following categories of shops for
any purchases made:

• Beauty parlor & Saloon


• Boutique shop
• Music Store
• Departmental shop/cosmetics shop
• Music Store
• Fast Food Restaurant
• Restaurant
• Fashion House
• Shopping Mall
• Flower & Gift Shop
• Hotel
• Jeweler Shop
• 1 second pulse after 20 second
• To recharge account and for balance inquiry:
- Call 123 (free of charge) and follow the direction or
- To recharge account through SMS press *123* then scratch cards
hidden number # and SEND
- For balance inquiry trough SMS: type *124# and send (free of charge)
• Prices are VAT exclusive and subject to change without prior notice
- Please buy all connections from exclusive Banglalink outlet/Banglalink
own sales center.
- Please bring two copies of passport sized color photograph to
purchase the connection

Desh

Banglalink “desh” was launched in September 2006. Banglalink desh is the best
prepaid package for making class to any network in any time. The flat rate for desh is
tk 1.96/min in peak (9am-12am) and there are 3 FnF (friends and family)-to any

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operator. Banglalink desh gives subscribers the lowest SMS rate to any network Tk.
0.99/SMS.

The tariff plan for Banglalink desh is as follows:

"Banglalink desh" tariff plan


Outgoing
9 am to 5 pm*
Banglalink to Banglalink Tk. 0.69/min *
Banglalink to other mobile Tk. 0.69/min *
Peak (5 pm to 12 am)
Banglalink to Banglalink Tk. 1.45/min
Banglalink to other mobile Tk. 1.45/min
Off Peak (12 am to 9 am)
Banglalink to Banglalink Tk. 0.25/min
Banglalink to other mobile Tk. 0.99/min
FRIENDS & FAMILY (3 Numbers to any
mobile)
Banglalink to Banglalink Tk. 0.25/min
Banglalink to other mobile Tk. 0.79/min
SMS
Banglalink to Banglalink Tk. 0.75/SMS
Banglalink to other mobile Tk. 0.75/SMS
* 30 second pulse is applicable from the first minute and the FNF rate is only 25
paisa.

* BTCB charges apply for desh standard connections

In addition, banglalink desh stands out as the best pre-paid package for making calls
to any network for the following reasons:

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1) Lowest peak rate to call to any mobile : Banglalink desh offers customers the
lowest peak rate to call to any mobile at Tk. 1.45/min
2) Late night rate from 12 am-9am: Only Banglalink desh offers customers late
night rate facility during peak hours. Banglalink desh late night rate is
applicable from 12 am-9am. The rate is
a. 25 paisa/min-Banglalink to Banglalink
b. 99 paisa/min-from Banglalink to any other operator
3) Bonus on Incoming: Banglalink prepaid desh customers (m2m and standard)
now get bonus talk-time for outgoing calls upon receiving class. A customer
will receive 20% free talk-time in a month based upon the calls received in the
previous month except banglalink.
4) Lifetime Validity: lifetime validity on prepaid account gives a customer the
benefit of receiving incoming calls and staying connected forever. To get
lifetime validity, a customer’s has to recharge his/her pre-paid account with a
minimum amount of taka 10/-or above (via scratch card or i-top up).
5) EISD facility: Subscribers can call to 55 countries from their desh (even from
M2M) connections at economy rate!

A new desh connection will cost:

* Taka 450 (m2m)-with taka 20 FREE talk time

* Taka 499 (standard with TNT incoming FREE)-with taka 20 FREE talk time

For existing ladies first/bonus prepaid customers.....

Ladies, first and bonus prepaid customers can also migrate to desh for free by
sending an SMS DS to 210. There is no cost for 1st migrating to desh but bonus
customers will not be able to migrate back.

Desh Rang Tariff:

 "Banglalink desh rang" tariff plan


Outgoing
9 am to 12 am
Banglalink to Banglalink Tk. 0.99/min
Banglalink to Others Tk. 1.75/min
Off Peak (12 am to 9 am)

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Banglalink to Banglalink 25 paisa/min
Banglalink to other mobiles 99 paisa/min
FRIENDS & FAMILY (4 Numbers from BL-BL)
Banglalink to Banglalink Tk. 0.25/min
SMS
Banglalink to Banglalink Tk. 0.25/SMS
Banglalink to Others Tk. 0.50/SMS

 60 sec. pulse will apply for FnF calls, late night call and all calls to other operators'
numbers at all times. For any other call at other time, 30 sec. pulse will apply.

Calls to BTCL:
 BTCL charge will be added for standard

Post-Paid Products
Banglalink enterprise-your link to growth
Regardless of the industry or size of the business, the aim is the same-growth!
Speedy and reliable information flow is crucial to business. With this in mind,
Banglalink welcomes customers to the world of Banglalink enterprise. It is the
telecom solution for businesses that understands customer’s needs and offers
customized communication solutions to help a customer’s business grow faster.
With Banglalink enterprise a company will be assigned a dedicated enterprise
relationship manager who will provide personalized assistance round the clock.
Special benefits of Banglalink Enterprise:

• 1 second pulse
• Round the clock care line to answer all questions
• Customized price plans and packages to meet specific needs
• No security deposit for initial start-up and international roaming
• Free itemized bill
• Discount on connection free
• Banglalink enterprise family offer
• Smart business tools like GPRS, missed call alert, enterprise SMS
broadcast, enterprise short code, fax and data service, free voice mail retrieval
and more
• Convenient bill payment options
• Other value added services will be available as well

Enterprise personal packages

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Banglalink constantly strives to provide people the best service at the most
affordable price. People can now choose the appropriate package based on people’s
need and usage pattern.
Benefits of personal packages:

• Standard postpaid package with T&T Local, NWD, ISD and E-ISD
connectivity)
• 1 second pulse
• Lowest call charges
• FnF to any mobile operator with a very low tariff
• Up to 15% monthly loyalty discount on airtime
• All incoming calls including T&T are absolutely FREE
• Economy ISD call charges (012) to 55 countries
• Low monthly line rent
• Hassle free bill payment through i’ top up
• GPRS and MMS service
• International Roaming
• International SMS
• Tk. 100 FREE talk-time for new connections
• Smart services like Amar Tune, Power Menu, Missed Call Alert, News
Alert, Yellow Pages, and many more
• Basic GSM services (call conferencing, call waiting, caller ID, call
divert/forward, call hold, call barring, etc)

Customer can choose from the following three personal packages based on their
need and usage pattern:
Personal package 1
 provides you the lowest call rates
 Waiver of monthly fee if usage is greater than Tk.500 (without VAT)
 duplicating mobile number facility
 Up to 2 supplementary connections with attractive group talk rate
 10 MB GPRS & Miss call alert FREE (monthly)
 20% bonus on incoming
 Up to 15 % loyalty discount
Personal package 2
* Minimum monthly bill of Tk. 1.000 at the lowest call rates
* Monthly 150 FREE News SMS
* FREE itemized bill
* FREE golden number upon availability

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* Duplicating mobile number facility
Personal call & control
* Usage through recharging scratch card/i’ top up
* Lowest monthly fees
* Helps keep usage within control
Callcharges:

* Minimum monthly bill has to be Tk. 1,000 excluding VAT. It the bill is not Tk. 1,000
then the difference amount will be charged as monthly line rent. For existing
Banglalink postpaid 600 and 1200 package customers, minimum monthly bill will be
applicable from May 2008 bills.
** Promotional offer for BL to BL calls including BL to BL FnF calls from 00:00 hrs to
9:00 hrs.

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* FnF number can be any mobile number of BL or other mobile operators
* All prices are in BDT and VAT exclusive
* Conditions apply
Personal package customers* can enjoy loyalty discount every month based on
monthly usage and length of stay with Banglalink. This means the longer subscribers
have been with Banglalink the higher the discount they will receive.
The loyalty discount is our way to expressing gratitude toward subscribers, because
their loyalty means that Banglalink is their preferred and trusted mobile operator.
This offer will be applicable for all existing and new customers from May 2007 and
will be available until further notice.
Subscribers can enjoy the discount every month as mentioned in the following Table:

Monthly outgoing voice calls


 Length of stay with banglalink (Excluding T&T charge, Roaming & VAT)
Tk. 401-1500 Tk. 1501-3000 Tk. 3001+
More than 2 years 10% 12% 15%
More than 1 year,
8% 10% 12%
Less than 2 years
Less than 1 year 7% 8% 10%

A customer’s length of stay will Banglalink will be calculated based on the date of
activation of service with Banglalink.
For personal package 1 and personal package 2 customers, the discount amount will
be adjusted with the monthly bill.
For personal call & control customers, amount equivalent to the discount will be
uploaded every month to their account.

3G network Potential
Health Care Augmented
Call rate Expected
Communication Core
SIM sevice Basic

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Pricing Strategies
People from different areas contribute their expertise to set the most strategic price
for a product.

• Accountants, financial managers and sales representatives provide relevant


cost data.
• Designers, engineers contribute important data as well.

Prices are determined by the basic ways:

• By applying the concepts of supply and demand.


• Completing cost-oriented analyses.

Economic theory assumes that a market price will be set at the point where the
amount demanded and the amounts supplied are equal.
• Cost based Pricing: Practice of adding a percentage of specific amounts to
the base cost of a product to cover overhead costs and generate profits.

Cost based Pricing totals all costs associated with offering a product in the market,
including research and development, production, transportation and marketing
expenses.
Breakeven Analysis: Pricing technique used for determining minimum sales volume
a product must generate at a certain price level to cover all costs.

• Involves different types of costs and total revenues.


• Helps to determine profits/losses that would result from several proposed
prices.
• Calculations of required sales can be compared by the Marketers.
• The comparison can identify the best price, one that may exceed the
breakeven point and earn profits for the company.
• Banglalink joined the cell-phone Market a year ago. According to their plans
and strategies: they have a goal of reaching the breakeven point within a few
years.
• Al the present, they are concentrating on increasing and holding their
subscribers which may cause a slow rate of progress in reaching the
breakeven point.

Alternative Pricing Strategies

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• Skimming Pricing: The setting of an intentionally high price relative to the
prices of completing products. It may outline the firm’s high-end product from
those of competitors as well. Skimming pricing is often used to recover a
company’s product development costs before competitors are introduced in
the market.

Among the huge market of prepaid users, the Upper-Class Post Paid competes
completely in different consumers.
This certain type of offer differentiates itself relative to the other competing products
of the same company’s market.
• Penetration Pricing: Setting low prices in products and services as a major
marketing weapon. This strategy helps marketers to increase the product
prices after the product earns certain recognition among the consumers.

Banglalink introduced a Package, offering a basic Handset as well as a talk-time of


1800tk at the company’s very starting, where the total cost of the package was less
the market price of the handset alone. The offer helped the company to make a very
early impact among the consumers because of its unique offer.
• Everyday Low Pricing and Discount Pricing: Strategy devoted to maintain
continuous low prices rather short-term price-cuttings.
• As the mobile phone companies run their prices on rather different ranges of
time-slots, Banglalink offers least in average pricing of their services
compared to the other rival companies. The company is also continuing its
efforts on reducing prices of their current offers until a steady, low priced
strategy is achieved.
• Competitive Pricing: To reduce the emphasis on price competition by
matching other firm’s prices and concentrating their own marketing efforts on
the product, distribution and promotional elements.

Banglalink is among the first mobile companies to offer a different taste in telephone
conversation by introducing voice conferencing.

Banglalink identified the deficit of a service that is neither too cheap not too
expensive, and invocated a business offer named Call & Control Standard. This
particular package includes many of the offers from the actual post-paid package to
attract the customers but at a more standard price. Another attraction of this offer is
that, the SIM card never deactivates even if it’s not used for a long time.
Price-Quality Relationships:

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• The consumer’s perception of product quality is closely related to the price of
the item. That is, a product may be expected to be valuable if its price is
labeled in a higher price.
• Extreme prices are considered as too expensive or too cheap.

One of the up-coming products of Banglalink; will be offering mobile-to-mobile cell


phone connections at only fifty taka per SIM card. The company has already planned
to pay a percentage on those connections, and also aware of making the offer short-
termed.

• Certain priorities of the consumers.

Banglalink has taken initiatives for developing the ideas of consumers to prefer their
company over their rivals by repetitive advertisements
• Odd pricing: The strategy of setting prices in different ways, for giving a
general idea of the price to be less; where the price of the product may not
actually be so.
Banglalink uses pricing charts in half minute pulse in most ads, where the general
idea of pulse still remains in minutes.
Among many of the prices set by this particular company, odd pricing can be found
from text messaging prices to call charges.

23
Distribution & the Channel of Distribution:

Distribution:

Distribution is one of the four elements of marketing mix. An organization or set of


organizations involved in the process of making a product or service available for
use or consumption by a consumer or business user.

Channels:

A number of alternate 'channels' of distribution may be available:

• Selling direct, such as via mail order, Internet and telephone sales
• Agent, who typically sells direct on behalf of the producer
• Distributor (also called wholesaler), who sells to retailers
• Retailer (also called dealer or reseller), who sells to end customers
• Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They may be
just as important for moving a service from producer to consumer in certain sectors,
since both direct and indirect channels may be used. Hotels, for example, may sell
their services (typically rooms) directly or through travel agents, tour operators,
airlines, tourist boards, centralized reservation systems, etc.

There have also been some innovations in the distribution of services. For example,
there has been an increase in franchising and in rental services - the latter offering
anything from televisions through tools. There has also been some evidence of
service integration, with services linking together, particularly in the travel and
tourism sectors. For example, links now exist between airlines, hotels and car rental
services. In addition, there has been a significant increase in retail outlets for the
service sector. Outlets such as estate agencies and building society offices are
crowding out traditional grocers from major shopping areas.

Channel members:

24
Distribution channels can thus have a number of levels. Kotler defined the simplest
level that a direct contact with no intermediaries involved, as the 'zero-level'
channel.The next level, the 'one-level' channel, features just one intermediary; in
consumer goods a retailer, for industrial goods a distributor. In small markets (such
as small countries) it is practical to reach the whole market using just one- and zero-
level channels.

In large markets (such as larger countries) a second level, a wholesaler for example,
is now mainly used to extend distribution to the large number of small, neighborhood
retailers. In Japan the chain of distribution is often complex and further levels are
used, even for the simplest of consumer goods. In Bangladesh Telecom Operators
are using different Chains of Distribution, especially 'second level'. In IT and Telecom
industry levels are named "tiers". A one tier channel means that vendors IT product
manufacturers (or software publishers) work directly with the dealers. A one tier / two
tier channel means that vendors work directly with dealers and with distributors who
sell to dealers. But the most important is the distributor or wholesaler.

The Internal market:

Many of the marketing principles and techniques which are applied to the external
customers of an organization can be just as effectively applied to each subsidiary's,
or each departments, 'internal' customers.

In some parts of certain organizations this may in fact be formalized, as goods are
transferred between separate parts of the organization at a `transfer price'. To all
intents and purposes, with the possible exception of the pricing mechanism itself,
this process can and should be viewed as a normal buyer-seller relationship. The
fact that this is a captive market, resulting in a `monopoly price', should not
discourage the participants from employing marketing techniques.

Less obvious, but just as practical, is the use of `marketing' by service and
administrative departments; to optimize their contribution to their `customers' (the
rest of the organization in general, and those parts of it which deal directly with them
in particular). In all of this, the lessons of the non-profit organizations, in dealing with
their clients, offer a very useful parallel.

Channel Decisions:

• Channel strategy
• Product (or service)<>Cost<>Consumer location

Managerial Concerns:

25
The channel decision is very important. In theory at least, there is a form of trade-off:
the cost of using intermediaries to achieve wider distribution is supposedly lower.
Indeed, most consumer goods manufacturers could never justify the cost of selling
direct to their consumers, except by mail order. Many suppliers seem to assume that
once their product has been sold into the channel, into the beginning of the
distribution chain, their job is finished. Yet that distribution chain is merely assuming
a part of the supplier's responsibility; and, if he has any aspirations to be market-
oriented, his job should really be extended to managing all the processes involved in
that chain, until the product or service arrives with the end-user. This may involve a
number of decisions on the part of the supplier:

• Channel membership
• Channel motivation
• Monitoring and managing channels

Channel membership:

1. Intensive distribution - Where the majority of resellers stock the 'product' (with
convenience products, for example, and particularly the brand leaders in
consumer goods markets) price competition may be evident.

2. Selective distribution - This is the normal pattern (in both consumer and
industrial markets) where 'suitable' resellers stock the product.

3. Exclusive distribution - Only specially selected resellers or authorized dealers


(typically only one per geographical area) are allowed to sell the 'product'.

Channel motivation:

It is difficult enough to motivate direct employees to provide the necessary sales and
service support. Motivating the owners and employees of the independent
organizations in a distribution chain requires even greater effort. There are many
devices for achieving such motivation. Perhaps the most usual is `incentive': the
supplier offers a better margin, to tempt the owners in the channel to push the
product rather than its competitors; or a competition is offered to the distributors'
sales personnel, so that they are tempted to push the product.

Monitoring and managing channels:

In much the same way that the organization's own sales and distribution activities
need to be monitored and managed, so will those of the distribution chain.

26
In practice, many organizations use a mix of different channels; in particular, they
may complement a direct sales force, calling on the larger accounts, with agents,
covering the smaller customers and prospects.

Distribution Management System:

About DMS Application:

Distribution Management System is specifically developed for the company, which


has high volume of sales with wide distribution network. This application keep track
of all sales which happens either through depot, channel or through any other mode,
even it keep a track of all inventory of your dealers or depot and respective other
details which are normally required by management for day to day reporting.

Features:

The complete application is developed in modules with various level of access


control and the best part of it is that the reports can be seen by management or
concerned person from anywhere, anytime

Reports:

The types of reports which are generated by this application are:

1. Sales Status

• All Dealers/ All Channels


• Specific Dealers/ Channels.
• Specific Day
• Range of Day/Mont
2. Payment Status
• All Dealers/ All Channels
• Specific Dealers/ Channels.
• Commission Generation.
• Outstanding
• Range of Day/Mont
3. Stock Report
• All Dealers/ All Channels
• Specific Dealers/ Channels.

Market Dominance and Competitive Advantages:

27
Market dominance and Competitive advantages are the measure of the strength of a
brand, product, service, or firm, relative to competitive offerings. There is often a
geographic element to the competitive landscape. In defining market dominance, you
must see to what extent a product, brand, or firm controls a product category in a
given geographic area.

There are several ways of calculating market dominance. The most direct is market
share. This is the percentage of the total market serviced by a firm or brand. A
declining scale of market shares is common in most industries: that is, if the industry
leader has say 50% share, the next largest might have 25% share, the next 12%
share, the next 6% share, and all remaining firms combined might have 7% share.

Market share is not a perfect proxy of market dominance. The influences of


customers, suppliers, competitors in related industries, and government regulations
must be taken into account. Although there are no hard and fast rules governing the
relationship between market share and market dominance, the following are general
criteria:

• A company, brand, product, or service that has a combined market share


exceeding 60% most probably has market power and market dominance.

• A market share of over 35% but less than 60%, held by one brand, product or
service, is an indicator of market strength but not necessarily dominance.

• A market share of less than 35%, held by one brand, product or service, is not
an indicator of strength or dominance and will not raise anti-combines
concerns of government regulators.

Distribution Practice of Banglalink:

Distribution System of Banglalink:

Distribution is the heart of the sales. So, the more distribution network is strong the
more the chance of getting revenue. Banglalink has an effective distribution model.
Banglalink distribute their products through the distributors. Mainly the SIM and Air
Time (scratch card and electronic money reload-I’ top-up) are the main products for
distribution. Banglalink gives the product to the distributors and they buy it from the
Banglalink. For that they are getting 1% commission for every Tk. 1 lack for reload
money. For the SIM sale they are getting .75% commission of total uses what the

28
distributor sold to market and they will get it till his distribution will run for the
company. Banglalink also provides distribution operating cost for the distributor for
running their business. The operating cost has two parts one is fixed Commission for
the Distribution mangers salary, rent of house and other distribution cost. The other
portion is Variable cost for the salary of the Retail sales officer.

Key Focusing points of Banglalink distribution System:

Act as in Best Business Partner:

Banglalink is the first cell company who focuses on the route level distribution
process as followed by the FMCG companies. This distribution system enables the
wide open trade relationship to act as a better business Partner. In this concept now
Banglalink has almost 50 thousand retail outlets across the Bangladesh instead of
the Exclusive outlet of only 287 outlets in 2005. For the route level distribution
penetration and improving better business relationship there is no other option to go
to each and every outlet and reach our product. In this process Banglalink introduce
District distribution concept from April 2006.

Distribution Cost Sharing with Distributors:

In Banglalink distribution Model Company are giving distributors operating cost. This
cost includes distribution mangers salary, Commission disburser salary, distribution
house rent and RSO salary. Banglalink not only ensure distributor commission but
also give commission to trade for every single SIM are activated and used. In the
trade Banglalink is giving Tk 100 to the retailers for every single SIM uses.
Commission is the main profit for the retailers to do SIM business. Every month
Banglalink gives commission for the retailers through the distributors. In Banglalink
the Main product for the company are both SIM and reload. The reload are the main
device for gaining the revenue for the company. So, through the distributors
Banglalink distribute the reload SIM to the retailers and that’s the main job for the
sales team to penetrate the products to rural, Urban and semi urban retailers.

Promotion and Trade Marketing support:

29
In order to sell the product or to make it aware of the consumer level and so as in
trade level different trade promotion, consumer promotion and trade marketing are
offering from Banglalink.

Trade Promotion:

Trade promotion is basically the trade offer which is given to trade as of trade
commission in addition to the regular commission. Generally trade commissions are
2 types’ upfront commission and usage commission. In addition which is given to
trade is called trade promotion. Some trade promotions of Banglalink are Boishaki
offer ’07, Boshonto offer ’08, and May bonus ’08.

Consumer Promotion:

Consumer promotion are designed for the consumer that is called package such as
night bird that is from 12 a.m. to 9 a.m. any Banglalink user can call to any
Banglalink no for 25 paisa minute and from 9am to 4pm Banglalink to Banglalink 69
paisa. 300 SMS free for 50tk recharge etc.

Trade Marketing Support:

Trade Marketing is basically ensuring customer pull. In the trade level different
activities is done for sales more or keep the sales upstream. Banglalink has done
lots of trade marketing activities in the trade level such as trade advertisement like
giving trade letter for different trade promotions, ensure different package promotion
point of sales materials like Trade Posters, Backlit sign placement, Focusing new
channel of business like HoReCa activation, Ensure local activation program, special
focus on branding hubs, Markets etc. In a nut shell it can be said that sales
resources planning and quality execution is the key instrument for sales which called
Trade Marketing.

Quarterly Business Review:

30
In order to improve ourselves we need regular review of our responsibility or work.
Only the regular monitoring and review can put a positive difference in your work.
Banglalink is not making different than that every quarter we arrange a quarterly
business review to discuss about the last 3 months business and past performance,
Flaws and opportunities. It’s an open discussion in which distributors are involved to
share their experience in doing business and form the company end we give the way
forward to the further business plans and procedure. So, quarterly business review is
an important segment where the important business decision is taken for the
development and pre plan for the net take out of the business. It has helped the
distributor how to grow further in his zone and what they will serve according to the
companies plan.

Distribution Management System (Banglalink Distribution Data Software):

Distribution management system is the data software of Banglalink where all the
trade members’ details information is uploaded for the tracking of the business. In
DMS all the related data of everyday business is recoded, such as how many SIM a
particular retail outlet is taking. It has the details of that particular outlet such as
retailer’s name, Address, regular dealings of SIM and the main parts of that DMS are
regular activation and trade commission generation. The other part of the distribution
management system is that SAF submission in because each & every single
activation requires a fulfillment of SAF (Subscriber’s Application Form).

Banglalink is the only company in Telco industry and FMCG industry who sharing the
distribution cost with the distributor for doing the business.

Problems & Prospects of the Distribution System of Banglalink:

Banglalink is very keen kin to improve its distribution system. That’s why they are
doing very hard to remove all the weak points from the distribution model. There are
some basic problems in Banglalink Distribution Management System.

Business Partner:

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In Exclusivity model Banglalink do business only with 5 National distributor and they
controlled 287 outlets all across the country. That why the trade relationship was not
involved directly. But now in District distribution model Banglalink is directly involved
to the trade level around of 50000 outlets with their 103 distributors but the problem
is they need to improve the service level such as effective business relationship,
more information dispatching to trade level in an effective way. As business partner
Banglalink is trying give out their best with their skilled sales force and a planned
distribution model. The district distributor concept enables the broad way to
communicate more and more to trade. Behind the distribution model the major
problems are as Banglalink only operate 50000 outlets there is a lots of opportunity
in the markets as 500000 outlets universe in the market. Now days mobile SIM is not
the posh product rather now it goes a useful element for all types of people. For that
non classification product pattern now it needs to penetrate hugely in semi urban and
rural level. So, the challenge of this distribution model is that to make direct contact
with the retailers with keeping a modest relationship and to capture as much as the
universe.

Cost Sharing with the Distribution:

In order to drive a distribution lots of cost are involved they are cost of manpower,
working capital caring cost of the product, distribution cost in the market. In those so
many costs Banglalink support their distributors to give them the partial distribution
cost that is the RSO salary distribution manager salary, Computer operator salary
etc. For this cost sharing every distributor is getting at least Tk. 60,000.00 per month.
But from the sales turnover and geographic coverage view point small distributors
are enjoying huge profitability and it is very much positive in their ROI but for large
distributors the phenomenon is reverse as their manpower requirement and
geographical coverage is more than the smaller distributors but both of them are
getting the same amount of money as distribution cost.

Another problem is that with the cost sharing tendency often signals to the
distributors that they only want to be strict to the given cost rather expense more for
gaining more revenue. Distributors are reluctant to spend more in this issue where a

32
bit of extra expenditure in the distribution helps they earn more revenue not only for
the company but also their own profitability and Return on Investment (ROI).

Promotion and Trade Marketing:

In case of giving trade promotion and in trade marketing activities Banglalink has a
benchmark to be the best among the other mobile operators. Regular trade
promotion like Boishakhi offer, Boshonto offer and May bonus offer has clicked
hugely that’s why in 2007 Banglalink has acquired 43 lack of customer base which is
the 2nd highest acquisition in 2007 and in 2008 till august Banglalink is about to hit
the 10 million customer base. That’s all happen for giving the trade the continuous
lucrative offers to get more business to the retailer end. As the trade level is only
path to get the customers so the trade is the highly focused area to get business
from there. But the main problem in that sector is the continuous and consecutive
trade offer sometimes gets the monotony in the trade and it will also increase the
whole sale tendency for the retailers and it’s a huge obstacle for the distribution
excellence. So, to reduce the tendency of the whole sale and to stack of the sales
trade offer need to give a certain period of time like one month rather giving three
months at single stretch. The other part is the trade marketing where a number of
resources are used to ensure product campaign, visibility, and different activation
program. The main constraint in this regard is that the resources shortage which
sometimes affects our trade priority, business relation, and ultimately, revenue
generation.

Quarterly Business Review:

Quarterly business review is the review program that occurs for the quarterly
business plan implementation and the performance evaluation for the last 3 months.
Its an open discussion for the distributors to show their performance what they are
doing as well as where the company’s business go on in terms of distributions
excellence, sales target achievement, revenue collection, trade loyalty. Basically
here there is no problem but the inclusion should be the requirement of such
program for the trade level such trade meet organize to alert the retailers or to give
the feel of business and to understand them their own standing of business and to

33
educate them about the new plan of distribution and to show them the path of
profitability. So, at least one trade meet is required for the every quarter for the retail
level as well.

Distribution Management System (BANGLALINK Distribution Data Software):

DMS is the most important data software for the Banglalink distribution system. Full
distribution system is run by the DMS. In the DMS the total business transected
outlets details are there which we called the registered outlets. DMS takes part
basically when the SIM is sold to distributors from the company and the sold SIM is
entered in the DMS first from there it goes to those retailers at the time the SIM code
is recorded in the name of the retailers. Thus every single sold SIM no. and serial no.
is recorded in the DMS which ensure the retailers commission when those sold SIM
are activated. So, to ensure the commission for the retailers DMS is the only solution
for the retailers. So, the accurate inputs of DMS data is the main job to ensure the
retail commission and of course the trade loyalties. If a single mistake is arises then
the retailers will not get the commission which may break the business relationship
with Banglalink and makes an issue of trade dissatisfaction towards the company.
So, in order to reduce the mistakes and inaccuracy from the DMS the requirement is
the close observation and monitoring to build the strong trade loyalty through
ensuring commission to the retailers.

Banglalink Distributors:

Dhaka
A&E International Gopalgonj 01913- A-4, Mahmud Plaza
502300 Bongobondhu Sarak.
Gopalgonj, Bangladesh.
BB Telecom Shariatpur 01913- Awal Super Market Shodor
844243 Road, Shariatpur.
E.N Distributing Narayangonj 01913- 194 B.B Road, Shamabay
House 385177 Super Market (3rd Floor)
Chashara, Narayangonj
Butterfly Telecom Dhaka Metro: 01912- 71, Motijheel C/A,
Motijheel, 135610 Dhaka-1000.
Paltan.
MK PLUS Dhaka Metro: 01911- H # 156/B. Rd-22, New
Mirpur, Kafrul, 429020 DOHS, Mohakhali, Dhaka.

34
Pallabi
R.S Telecom Kishoregonj 01913- Shop # 44 & 45 (1st Floor),
558080 Purana, Kishorgonj.
ADEL Faridpur 01913- Sumsuddin Tower (4th
Communications 464919 Floor), Alipur, Faridpur-
7800.
Green Tone Ltd. Dhaka Metro: 01913- 10/25 B Eastern Plaza,
Dhanmondi. 258686 Sonargaon Road, Hatirpool.
New Market. Dhaka-1205.
Hazaribagh
Tele Stream Ltd. Dhaka Metro: 01913- 47/1, North Mugdapara,
Sabujbagh and 735050 Dahka.
Khilgaon
Gazipur Trading Gazipur 01911- Room No. 26 (1st Floor)
House 117777 Akanda Mansion, Mosjid
Road, Joydevpur, Gazipur-
1700.
Integra Teletac Dhaka Metro: 01911- 5th Floor, Rapa Plaza, H #
Tejgaon, 429006 01, Rd # 16, Dhanmondi,
Ramna Dhaka.
Mobile House Mymenshing 01913- Press Club Complex
468600 (Ground Floor), 96 C.K
Gosh Road, Mymenshing
A. 1, Distribution Munshigonj 01913- Balashur Chowrasta, P.O.
478282 Bhagyakul, P.S-Sreenagar,
Munshigonj.
Ashraf Distribution Dhaka Metro: 01911- 13/4, (1st Floor) Solimullah
Mohammedpur, 344046, Road, Block-B,
Adabor 0191350365 Mohammadpur, Daka-1207.
Safedrive Dhaka Metro: 01911- Delwar Complex (3rd Floor),
Services Ltd. Sutrapur, 429023 26, Hatkhola Road,
Kotwali Dhaka-1203.
Ring Bangladesh Dhaka Metro: 01912- House # 03, Rd # 100,
Ltd. Gulshan, 135626 Gulshan-2, Dhaka.
Badda,
Cantonment
JN Distribution Dhaka (Uttara, 01913- H # 3, Rd # 18, Sector-7,
Khilkhet, 505700 Uttara, Dhaka-12030.
Airport, Turag)
Chittagong
Communic Trade Chittagong 01912- 1646, Lokman Tower, Level-
Link 500399, 5, SK. Mujib Road, Agrabad,
0192- Chittagong.
500388
M/S Al Amin Cox’s Bazar 01913- Laldighir Par, Main Road,
Stores 619200 Cox’s Bazar.

35
Techno Enterprise Noakhail 01911- Dalia Super Market, Karimpur
540404 Road, Noakhali.
Noorhan Telecom Comilla 01911- Court Road, East Fouzdarl
220354 Crossing, House # 148,
Comilla.
Syleht
M/S Hussain Sylhet Metro 01913- Karimullah Market (3rd Fl.)
Traders (South) 581020 Bondor, Sylhet.
Sass Tel Sylhet Metro 01911- Karimullah Market (4th Fl),
(North) 146760 Bondor, Sylhet.
South Sylhet Co. Moulvibazar 01912- Jagonathpur, Sreemongal
Ltd. 701925 Road, Moulvibazar.
M.A. Rahman Hobigonj 01912- Ali Plaza, Puran Mosef Road,
Afjal 709874 Habiganj.
Link Asia World Sunamganj 01919- Al-Hamra Shopping City, (6th
Wide 112233 Fl.), Sylhet.
Rajshahi
GSM PLUS Sirajganj 01913- Station Road, Sirajganj
601301
Rabna Mobile Rabna 01912- Abdul Hamid Road, Paradise
Distributor 801150 Street, Pabna.
Hamid Tellular Bogra 01913- Tinpotty Santahar Road,
847484 Bogra.
M/S Hamidia Nator 01913- Mollik Hatl, Nator
Associates 234353
Cell-O-Fone Rajshahi 01913- Gaffar Plaza, Shabeb Bazar,
846400 Rajshahi.
Any Time Naogaon 01913- Kajir More, Sadar Thana,
822636 Naogaon.
Arko Electronics Lalmonirhat 01911- Thana Road Lamonirhat
820992
Globe Link Chapai 01913- Club Super market,
602010 Naobabganj
M/S. Moulovi Dinajpur 01913- Maldahopotty, Dinajpur
Brothers 233536
M/S Mamun Galbandha 01912- Road # 1/1, House # 150/A,
Trades 549342 Mastaerpara, Gaibandha.
S S International Joypurhat 01913- House # 165, Professor Para,
237740 Joypurhat.
Trade Line Rangpur 01913- DC More, Rangpur
Enterprise 801901
Wireless Agent Thakurgaon 01913- BB Road, Thakurgaon
287293
Mina Trade Link Panchgarh 01911- Tetulia Road, Dokrapara,
229663 Panchagarh.
Khulna

36
M K line Khulna-1 01911- Khulna shopping complex,
070007 Khulan
M Link Khulna-1 01911- Khulna shopping complex,
070007 Khulna
Khulna Infotech Khulna-2 01912- A 43-44 Mojid Sarani,
217777 Shibbari, Khulna
Jess Link Jessore 01911- Jess tower, 4th floor, Jessore.
835444
M K Connection Jhenidha 01913- Jess tower, 4th floor, Jessore
077474
Ankur Commercial Kushtia 01912- Ganga Prashad Kejriwal
508608 Sarak, Kushtia.
Jonaky Traders Chuadanga 01913- Chuadanga Bazar,
920980 Chuadanga
Link Station Meherpur 01913- Mohila College Road,
248989 Meherpur
Easy Tel Magura 01913- Sayed Atar Ali Road, Magura
812323
Zahin Corporation Satkhira 01913- Shahid Kazal Sarani, Satkhira
200014
AAQIB Telelink Bagerhat 01913- Hamla Para, Litutola,
891200 Bagerhat
Barisal
Voice Link Barisal 01913- Razia Sultana Monjil, (2nd Flr.)
812424 Police line.

Market Segment
Market segments can be built up in many ways. One way is to identify preference
segment. Banglalink follow the diffused preference market segmentation. In these
segments, customer preferences may be scattered throughout the space, indicating
that consumers vary greatly in their preferences. Banglalink, which brand enters to
the market is likely to position in the center to appeal to the most people. A second
competitor could locate next to the first brand and fight for market share or it could
locate in a corner to attract a customer group that was not satisfied with the center

37
brand. If several brands are in the market they are likely to position throughout the
space and show real differences to match consumer preference.

Steps in Segmentation process:

Needs based segmentation: They are trying to solve customers’ needs and wants.
Some times they solve particular problem of the customers.

Segment identification: Urban people’s needs are different from rural people. They
are identifying customer’s lifestyles and usages behavioral. Their one of the popular
segmented product is lades first.

Segment attractiveness: Their overall market share, and market growth rate is
high. Their desh package captures the normal users and SME package capture the
business people.

Segment profitability: Their profit rate is very high. When they introduce the desh
package their profit increased by very high rate. They make profit by individual
segment.

Segment positioning: They offers very attractive package for customers, give them
bonus, and extra other facilities. They are in second position in this industry.

Marketing-Mix strategy: Their product price and facilities varies from package to
package. They introduced different product and different prices and different
promotion activities in different place.

Effective Segmentation:

Measurable: The size of the market is big, which can be measured. Now the call
rate of Banglalink is lower than the competitor. So purchasing power is high which
also can be measured.
Substantial: The main profitable segment is post-paid and Business Enterprise for
Banglalink. Another large profitable segment is pre-paid. Desh Rang is the leader of
pre-paid. This segment is for youth and also for general people.

38
Accessible: Banglalink has strong distribution channel which can be effectively
reached to the customers. Banglalink also has customer care center all over the
country to serve the customer in their need.
Differentiable: Banglalink recent slogan is “Onuvutir Network” which differentiated
their service from other network also offered .25 paisa first in Bangladesh. Banglalink
is the lowest call rate operator than the other operator which is easily differentiable.
Actionable: Banglalink is the first operator that introduced serves their customer
within 10 min in their customer care center to provide the better service.

Promotion

Advertising media:

Banglalink became a leader in terms of its advertising quality and setting very high
standards for competition and others. To campaign their product most effectively.

39
banglalink uses combination of different media to reach the highest percentage of
the customers the combination would include :

• Print media
• Television

Print media:

It is the habit of our people to go through some kind of newspapers or magazines


and Banglalink’s eye catching newspaper ads has attracted a lot of customers for the
company

Television:

The corporate TV commercial of “din bodol” based on the theme “making a


difference in people’s loves”. touched everyone throughout the country and was
adjudged the best TVC of the year according to the leading dailies of the country like
Prothom Alo and New Age. This TV Commercial has become a matter of national
pride for Bangladesh as it has been nominated for the best TV Advertisement of the
year with 4 other international television commercials at the GSMA Award 2007.
GSMA Award is considered to be the Oscar of mobile industry.

Billboards:

Billboards are the cheapest and easiest way to catch the attention of the moving
people of the city. The billboards of Banglalink are hung beside the busiest of roads
and streets of the city. Where people travel frequently such as Gulshan, Banani,
Dhanmondi, uttara etc.

Transit Advertising:

One of the most popular ways of advertising today is transit advertising, which are
the ads on body of the big buses as majority of the people of the country uses them
for traveling.

Health link:

They provide 24 hours health link service or telemedicine for Banglalink customers
by dialing 789.

Other Promotional Activities:

40
Banglalink continues to play an active role in the area of corporate social
responsibility. Banglalink has given Dhaka International Airport-the gateway of
Bangladesh a completely new look. Provision of high quality passenger trolleys,
phone booths, emergency charging station and beautification of the premises is an
exemplary initiative which no other multinational has taken. Banglalink also
contributed to an important tiger conservation project in the Sundarbans, and
continues to support the Cox’s bazar beach cleaning program.

Conclusion

Banglalink is one of the largest foreign director investments in Bangladesh. The


company, after its inception in February 2005, has grown rapidly into the leading
mobile phone service of the country.

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Banglalink operates in a very fast growing and increasingly competitive in the
market. The decisions made by the company at this stage are crucial in securing its
future position as the leading mobile phone service provider in the country.

The company uses a set discount rate based on the weighted average cost of capital
and adjusts it by adding risk premiums to suit different risk characteristics of the
projects. There are set guidelines for categorizing projects based on their risk
profiles. The timeframe they use is basically based on government regulations on the
estimated lifespan of the equipments and infrastructure. The cash flow is estimated
based on input from the different divisions regarding the profitability and market
potential of the project. Sensitivity analysis is conducted to evaluate the impact of
different variables on the projects outcome.

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