Marketing Management (MKT 501)

Report On Money Transfer in Bangladesh

Submitted To

Abu Daud Khan

Course Instructor
MKT 501

Submitted By
Reshat Shabnam : ID: 10164024

Date of Submission: 1st September 2012

September 1st , 2012

1

Abu Daud Khan

Course Instructor
BRAC Business School
BRAC University
Dhaka-1212

Dear Sir,
Here is the report that you have assigned us as a partial fulfillment of the course on
Marketing Management.The report is aimed to give an overview of segmentation,
positioning and 4Ps analysis of Money Transfer in Bangladesh.
We hope that the analysis that we have carried out is up to your expectations. It has
been an insightful experience for us and we tried our best to follow the tenets of
final report.

Sincerely yours,
Reshat Shabnam

(ID: 10164024)

ACKNOWLEDGEMENT
Having this report prepared was a team effort. But, first and foremost, we would like
to show our gratitude towards Abu Daud Khan, the faculty of Marketing
Management MKT 501 course. Had he not appointed us this assignment, we would
not have had so much of knowledge about how to prepare a well written formal
report that requires so much of intricate details and accuracy. Undoubtedly, this
assignment would help us in future in our career, thus preparing this report has
given us a great moral boost and confidence. We have gained thorough knowledge
about marketing management. We again thank our faculty for devoting his precious
time and knowledge to help us correctly prepare this report.

Finally we would like to thank all the people who have helped us gather information
about this term paper. It is for their assistance, that we have reached this stage in
finishing our report successfully.

Executive Summary
3

The online money transfer system, has added Bangladesh to its network of 38
recipient countries as the country's dependence on migrant-senders increases. The
new World Remit online money transfer enables Bangladeshis to send money and
airtime top-up from the comfort of their own home using a variety of payment
methods including debit cards, credit cards and online bank transfers. It is a
convenient and low cost means of sending money back home. Bangladesh is the
seventh largest recipient of global remittances in the world, receiving $11.10 billion
in 2010 according to the World Bank. Migrant workers remittances also make the
biggest contribution to Bangladeshs foreign exports, making up 13% of GDP in
2010. This figure could be even greater, as estimates from the World Bank suggest
high transfer costs by some services for remittances relative to the value sent
swallow up as much as $15 billion per year in developing countries.
Inter- Bank Transfer such as a Bankers Draft or Demand Draft (DD), Mail Transfer
(MT), Telegraphic Transfer (TT) , played the curicial role before introduction of mobile
money transfer system as well as newly introduced EFTN system . As a local money
transfer system S. A paribahan has

got great level of popularity as well as

trustworthiness which does not directly affecting the our GDP growth.
Transfer of money from one location to another with the use of devices like
computer and /or mobile phones by Bangladesh Post Office. It is the replacement of
paper based traditional money order to satisfy the urgent need of the customer as
well as creating quick and regular flow of money through a trusted legalized
channel. Computer needs continuous supply of electricity. But it is a major problem
in Bangladesh especially in some rural areas. Bangladesh Post provides the
monetary solution named Electronic Money Transfer Service (EMTS) for those want
to send money instantly anywhere within the national territory. The current users of
this service are businessmen, migrant workers, students and some companies
bKash is designed to provide financial services via mobile phones to both the
unbanked

and

the

banked

people

of Bangladesh.

The

overall

bKash value

proposition is simple: a safe, convenient place to store money; a safe, easy way to
make payments and money transfers. Customers will be able to receive electronic
money into their bKash accounts through salary, loan, domestic remittance, and

other disbursements and eventually will cash out the electronic money at any of the
hundreds of cash out agents which bKash assign.

Table of Content
Description

1. Introduction

Page No

01

2. Objective
3. Methodology

01
01

4. Limitation

01

4. bkas
5. S A Pribahan
6. Domestic Fund Transfer
7. Remittance

02-09
09-12
12-14
15-

17
8. Bangladesh Post Office
9. Recommendation

18-20
20

Introduction
Domestic and international fund transfer have emerged as a key driver of economic
growth and poverty reduction in Bangladesh, increasing at an average annual rate
of 19 percent in the last 30 years (1979-2008). Revenues from Domestic and
international fund transfer now exceed various types of foreign exchange inflows,
particularly official development assistance and net earnings from exports. The bulk
of the remittances are sent by Bangladeshi migrant workers rather than members of
the Bangladeshi Diaspora. Currently, 64 percent of annual remittance inflows
originate from Middle Eastern nations. Currently, 64 percent of annual remittance
inflows originate from Middle Eastern nations. Other than this domestic inflow has
made the remarkable success evidence on the economic growth

Objective
To identify Segment, target market, positioning as well as analysis the 4ps of money
transfer system with the special reference in Bangladesh.
Methodology

The methodology followed in this report is based on primary and secondary sources. The
required information for the introductory and descriptive part has been collected by:
Primarily we collect data through:
Discussing and briefing with some professional bodies.

Secondarily we collect data from:

Following the official web site and some related Link of financial institution,
leaflet as well as take the help from Google through searching
Limitation
The major limitations of this study are:
Web base information does not organize enough to get full insight.
Printed data are not available for preparing the report.
It was very much costly to collect data.

 Some extent Non-cooperative behavior of some officials of the

organization

bKash
bKash Limited (a subsidiary of BRAC Bank) is a joint venture between BRAC Bank Ltd.,
Bangladesh, and Money in Motion LLC, USA. The ultimate objective of bKash is to ensure
access to a broader range of financial services for the people of Bangladesh. It has a special focus
to serve the low income masses of the country to achieve broader financial inclusion by
providing

service

that

are

affordable

comfortable

and

reliable

More than 70% of the population of Bangladesh lives in rural areas where access to formal
financial services is difficult. Yet these are the people who are in most need of such services,
either for receiving funds from loved ones in distant locations, or to access financial tools to
improve their economic condition. Less than 15% of Bangladeshis are connected to the formal
banking system whereas over 50% has mobile phones. These phones are not merely devices for
talking, but can be used for more useful and sophisticated processing tasks. bKash was conceived
primarily to utilize these mobile devices and the omnipresent telecom networks to extend
financial services in a secure manner to the under-served remote population of Bangladesh.
Product
Cash in
You need to have money stored in your bKash wallet to avail the services. So, before
doing any transaction, make sure you have sufficient balance in your wallet. For
putting money in your wallet.
1. Go to any bKash agent
2. Let him know the amount you want to Cash In
3. Write down your wallet number and the Cash In amount in Agent register
4. Pay the amount of money you want to cash in
5. In exchange, the agent will send bKash money to your wallet. Cash In done!
8

6. You and the agent both will get confirmation message. Remember to put your
signature in the agent register before leaving the counter
Cash Out
If you have sufficient credit in your bKash wallet, you can withdraw cash anytime
from anywhere. To Cash Out from your wallet1. Go to any bKash agent
2. Let him know the amount you want to cash out
3. Write down your wallet number & the amount in Agent register
4. Dial *247# on your mobile for bKash menu
5. Choose Cash Out
6. Choose From Agent
7. Enter Agents wallet number (ask the agent)
8. Enter the amount
9. Enter your wallet PIN
10.

Done! You and the Agent both will receive confirmation message.

Count the amount and put your signature in Agent register before leaving the
counter
Send Money
Send Money enables you to transfer money to other's wallet. Follow the steps below
1. Go to bKash Menu by dialing *247#
2. Choose 'Send Money'
3. Enter the wallet number you want to send money to
9

4. Enter the amount you want to send

5. Enter a reference about the transaction. Do not use more than one word,
avoid space or special characters
6. Now enter your wallet PIN to confirm the transaction
7. Done! You and the Receiver both will receive confirmation message

Token
From Token option, you can create token to send bKash Money to someone who
does not have a bKash wallet. Afterwards, he can encash the token amount from
any bKash agent. Here is how you do it1. Go to bKash menu by dialing *247#
2. Choose Token
3. Choose 'Create Token'
4. Select a Photo ID type of the Receiver from the given options. The Receiver
has to show this ID while encashing the token
5. Enter the Photo ID number of the ID type that you have chosen earlier
6. Enter the amount you want to send
7. Confirm the amount and photo ID by pressing "1"
8. Now you need to give a Secret Code (not your PIN number, a different code
for this transaction only). It is better to be a number ranging from 4 to 8
digits. Along with the selected Photo ID type and number, the receiver will

10

need this code to encash the amount. Make sure that the Secret Code is
secret between you and the receiver only.
9. Now enter your PIN to finish creating token.
10.

You will get a confirmation message with details of the token you just

created
You have received your Token Number in that message which you will have to
communicate to the receiver along with the Secret Code provided by you during
creating the token. The receiver needs to go to a bKash agent along with his Photo
ID to encash the token in 14 days from its creation.
My bKash
You can check your bKash Account balance, see mini statement, change your bKash
Mobile Menu PIN, Activate ATM and change ATM PIN anytime you want from My
bKash option.
My bKash Check Balance
To check your current account balance
1. Go to bKash Mobile Menu by dialing *247#
2. Choose "My bKash"
3. Choose "My bKash"
4. Enter your Mobile Menu PIN
You will see your current and available balance of your bKash Account. My bKash
Request Statement
You can see a Mini Statement with details of your latest transactions.
1. Go to bKash Mobile Menu by dialing *247#
2. Choose "My bKash"

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3. Choose "Request Statement"

4. Enter your Mobile Menu PIN
You will see the dates, types and amounts of your last 6 transactions My bKash
Change Mobile Menu PIN
For ensuring the security of your bKash Account, it is recommended that you
change your bKash Mobile Menu PIN when you feel that it may have been
compromised. "Change Mobile Menu PIN" from My bKash gives you that option. Here
is how you do it 1. Go to bKash Mobile Menu by dialing *247#
2. Go to "My bKash"
3. Choose "Change Mobile Menu PIN"
4. Enter your "Old PIN"
5. Enter a new PIN to replace the old one
6. Enter the new PIN again to confirm
You will see a confirmation message on your mobile that you have successfully
changed your Old PIN. My bKash Activate ATM
To avail the ATM Cash Out service, you need to activate this feature from your bKash
Mobile Menu. After activation, you will be able to Cash Out from any bKash enabled
BRAC Bank ATM. To activate the service, follow the steps below -

1. Go to bKash Mobile Menu by dialing *247#

2. Go to "My bKash"
3. Choose "Activate ATM"
4. Enter a new PIN. This PIN will be your bKash ATM Cash Out PIN and is better
to be different than your Mobile Menu PIN

12

5. Enter the PIN again to confirm

You will see a confirmation message on your mobile that you have successfully
activated the ATM Cash Out service. My bKash Change ATM PIN
For ensuring the security of your bKash ATM Cash Out PIN, it is recommended that
you change it when you feel that it may have been compromised. "Change ATM PIN"
gives you that option. Here is how you do it
Go to bKash Mobile Menu by dialing *247#

1. Go to "My bKash"
2. Choose "Change ATM PIN"
3. Enter your "Old PIN"

4. Enter a new PIN to replace the old one

5. Enter the new PIN again to confirm
You will see a confirmation on your mobile that you have successfully changed your
Old PIN.

Price
From (Taka)

To (Taka)

Charges (Taka)

50

100

5.00

13

101

300

10.00

301

1,100

15.00

1,101

2,600

37.00

2,601

4,500

73.00

4,501

6,500

100.00

6,501

8,500

120.00

8,501

10,500

135.00

Over 10,500

1.25%

Registration

No charge applicable

Cash In

No charge applicable

Send Money (Individual)

Tk. 2.00 (for any amount)

Cash Out from ATM

2% of transaction amount

Payment (Merchant)

No charge applicable

Create Token (from Own Account)

Tk. 5.00 (for any amount)

Create Token (via Agent)

Tk. 5.00 (for any amount)

Encash Token

Same as Cash Out from Agent charges

14

Redeem Token (from Own Account)

Tk. 5.00

Redeem Token (from Agent)

Cash Out charge + Tk. 5.00

Registration

No charge applicable

Cash In

No charge applicable

Send Money (Individual)

Tk. 2.00 (for any amount)

Cash Out from ATM

2% of transaction amount

Payment (Merchant)

No charge applicable

Create Token (from Own Account)

Tk. 5.00 (for any amount)

Create Token (via Agent)

Tk. 5.00 (for any amount)

Encash Token

Same as Cash Out from Agent charges

Redeem Token (from Own Account)

Tk. 5.00

Redeem Token (from Agent)

Cash Out charge + Tk. 5.00

Promotion
1. University admission through bkash
2. Selecting agents in hotels & restaurants
3. Advertising
4. Direct marketing

15

5. Having contracts signed with agora, nandos, prothom, hallmark alo makes
the publicity and advertising
Place
1. bKash points
2. Sundarban courier
3. Grameen Phone
4. Robi
5. Banglalink
6. Brac bank atms
7. Continental courier

S A Paribahan
S A Paribahan is one of the oldest and the leader in business of transportation,
courier service and money transfer in Bangladesh. It is providing successful service
since 1982 with the government authorization. It has more than 5,000 staff and 63
branches all over the country. All branches of S A Paribahan are very careful to
deliver customers goods and money to their desired destination. Customers also
prefer courier and parcel services for quality and feel comfortable in sending goods
and money from one place to another.
Branches
The head office of S A Paribahan is situated at 23/25 Kakrail, Shantinagar, Dhaka. It
has 6 branches in Dhaka city- Mohakhali branch, Uttara branch, Elephant Road
branch, Mirpur branch, Malitola branch and Kakrail branch. Other branches are
situated at Narayangonj, Savar, Mymensingh, Jamalpur, Kishoregonj, Tangail,
Faridpur, Chittagong, Rajshahi, Khulna, Sylhet and Barisal.

16

Segment
A market segment consists of a group of customers who share a similar set of needs
and wants. There are three bases for segmenting consumer market Geographic
segmentation, Demographic segmentation and Psychographic segmentation. Since
the product of this company is money transfer, geographically it focuses on most of
the districts in Bangladesh and demographically it focuses all generation, any type
of income people, both male and female, and any aged people. That means this
company does not focus any specific part.
Target Market
After evaluating different segments, the company can consider five patterns of
target market selection. These are: Single-Segment Concentration, Selective
Specialization, Product Specialization, Market Specialization and Full Market
Coverage. In this case, its product is money transfer and its target market is several
different market segments. So the pattern of target market selection of this
company is Product Specialization. All classes of people are its target market.

Product Specialization
M1

M2

M3

P1
P2
P3

Positioning
Positioning is the act of designing the companys offer and image to occupy a
distinctive place in the mind of the target market. Its target market is all classes of
people but it can position of middle and lower class people. Because it is very easy
to money transfer through S A Paribahan. Customers go to the branch; they give
money and the desired destination, receivers name, mobile number and take a

17

memo. On the other side, receiver goes to the branch, proves his mobile number
and takes the money. So the process is so easy. Customers do not face any critical
process. The lot size of its product is various types and price is reasonable. For this
reason, middle and lower class people prefer more.
Product
The product is money transfer. The lot size of this product is Tk1,000 Tk5,000;
more than Tk5,000 Tk40,000; more than Tk40,000 any amount. For urgent send,
this company sends money through T.T which is minimum Tk50 and maximum
Tk100,000.
Price
For Tk1,000 Tk5,000, this company charges Tk15 per thousand.
For more than Tk5,000 Tk40,000, this company charges Tk10 per thousand.
For more than Tk40,000 any amount, this company charges Tk8 per thousand.
It charges Tk50 for any amount of T.T.
Place
When customers go to any branch, give it receiver mobile number and money for
sending their desired destination, the branch sends a memo to the desired
destination and after 24 hours that branch calls to receiver for collecting money. On
the other hand, all branches send memos and money to the head branch and
according to memos the head branch distributes money among the branches. For
receiving and sending memos and money, they use their own transportation. For
urgent send, they send information by fax. So their channels are-

Branch
Branch

Transportation

Head Branch

Transportation

Promotion

18

The marketing communication mix consists of eight major modes of communication.

But S A Paribahan does not use all the modes of communication for its money
transfer service. This company provides other services such as transportation and
goods courier service as well as those is very popular. At first, people came
branches for transportation and courier purpose and they knew about its money
transfer service. Actually, people have known about this service by World - of mouth marketing mode. Recently, it has arranged an advertising program which will
telecast after few days. It also uses Direct marketing mode through internet.

Domestic Fund Transfer

Business industry and members of public are in frequent need of remitting fund
from one place to another for various purposes. Remittance of funds through banks
eliminates the hazards in transportation of cash from one place to another for
setting trade and private dues. On deposit of requisite funds and payment of the
required charge, a bank undertakes to make the remitted amount available to a
particular person or his order in a particular branch of the same bank or on other
banks with which it may have agency arrangement.

19

Various methods have been evolved by the banks for remittance of funds from one
place to another. Generally such remittance is effected by banks in three ways,
namely: (a) Bankers Draft or Demand Draft (DD), (b) Mail Transfer (MT), (c)
Telegraphic Transfer (TT).
In Bangladesh, most of the people live in the rural area where the banks are not
able to serve the online banking system. So, for transferring money from this type
of region people have to depend on TT, MT.
Bankers Draft (DD)
Bank Draft also called Demand Draft are equivalent to cash. Payment in drafts are
free from any ambiguity. Once the drafts are issued, the purchaser no longer
remains any party to the instruments.
MAIL TRANSFER (MT)
The Mail Transfer system is an arrangement by the banks to remit funds of the
customers from one place to another through ordinary postal channel. Banks
instruct their concerned branch to pay a certain amount to a specified person or to
his order. This service is availed by a remitter when he desires his bank to remit the
funds to the payee instead of purchasing a Draft himself.
TELEGRAPHIC/ TELEX TRANSFER (TT)
Sometimes people are in urgent need of remitting money from one place to another.
In such cases, they prefer to remit money through Telegram/ Telex which is called
Telegraphic/Telex Transfer (TT). It is an internal arrangement by the banks to remit
funds through telex messages instead of postal messages.
Place
Sender Originating Bank Receivers Bank Receiver.
Price
For sending, 1- 25000 Tk, Charge: 69 Tk.
For Sending, (25000+ x thousand) Tk, Charge: (69+x) Tk.

20

Online

Banking

System

Online banking is an internet based account management service

view our account

balances and

transaction,

that

allows to

transfer funds between authorized

accounts, initiate loan payments and can include bill payment services.
Bangladesh Electronic Fund Transfer Network
Electronic Funds Transfer (EFT) is a system of transferring money from one bank
account directly to another without any paper money changing hands.
EFT Credits
EFT credit entries occur when an Originator initiates a transfer to move funds into a
Receivers account.
For example, when a corporate uses the payroll service at a bank to pay the salary
of

its

employee each month, the corporate originates the payment through the OB to
transfer the money into the account of the employee; the individual is the receiver
in

this example.

Some other common credit applications are:

Inward Foreign remittances

Domestic remittances
Payroll private and government
Dividends/Interest/Refunds of IPO
Business to business payments (B2B)
Government tax payments
Government vendor payments
Customerinitiated transactions

EFT Debits
In an EFT debit transaction, funds flow in the opposite direction to the information.
Funds are
Collected from the Receivers account and transferred to an Originators account,
even though the originator initiates the entry.

21

Some examples of EFT debit application

Utility bill payments

Equal Monthly Installments (EMI)
Government tax payments
Government license fees
Insurance premium
Mortgage payments

Place
Originator Originating Bank BEFTN Receiving Bank Receiver.
Price
This is the cheapest system for transferring money in Bangladesh.

Remittance
Like many other developing countries, Bangladesh depends largely on the overseas
employment market to substitute the high unemployment rate in the country. Since
the 1970s, migration has been on an increasing trend in Bangladesh with
exponential growth recorded in the last decade. According to official records, in
1976, 6,087 workers went abroad, while in 2008 the number peaked to 875,000
workers and in 2009, about 475,000 workers migrated through official channels.
Similarly, remittances, which have emerged as the highest source of foreign
exchange earnings for the country, have also been growing to reach a record high of
approximately $10.72 billion in FY 2009. The major destinations are to the Gulf
countries Saudi Arabia, UAE, Kuwait, Qatar, Oman, Iraq, Libya, Bahrain, Iran,
Lebanon and Malaysia, Singapore, Hong Kong, South Korea and Brunei.

22

Anil Kapur, senior vice president of the US-based company's South and South East
Asia operations, said Bangladesh is now a top ten remittance receiver in the world.
Bangladesh financial Institution is the main legal and official source for getting the
remmitance service. For providing this service financial institution has to develop a
bilateral agreement with the money transfer company such as

Western Union

Money Transfer Services, Continental Exchange Solution (Ria Financial

Services), Xpress Money Services,Trans-Fast Remittance LLC, UK based
Money Transfer Companies ( AN Express Limited ,Rumana Money Services UK ,
UAE Exchange Centre LLC, Wall Street Exchange Centre LLC, Habib Exchange
Co.LLC, Lulu International Exchange), USA based Money Transfer Companies (
Wall Street Finance LLC , US Money Exchange), K.S.A (Kingdom of Saudi Arabia)
based Banking Partners ( Al Rajhi Banking Corporation , National Commercial
Bank , Bank Al Bilad) ,Italy based Money Transfer Company-National Exchange
srl.
Target market selection
Product specialization:

the firm makes the certain product and that will sale to

different market. Here money transfer companies are proving

the remittance

service to the different level of migrants from Bangladesh as well as Non resident
of Bangladeshi with the help of financial institution.
Target customer: Migrant from the Bangladesh for the purpose of Job, study as well
as Dual passport holders whose used to send the money to their dearest one living
in Bangladesh.

Service
Remittance services are addressed as a people base service which is subject to be
intangible in the sense of money is transferring through an electronic manner. As
well as it cannot be stored because when beneficiary receives money from the
receiver at that time service level come to end.

23

Price: By definition price is the payment or compensation given by one party to

another in return for goods or services. Under this service sender convert the
foreign currency to taka by an exchange rate given by the Bank through Money
Transfer Company Such As Xpress Money. After that Bank will sale the received
foreign currency to the foreign exchange market. And this difference of monetary
value of receiving and selling the foreign currency price against the remittance
service for the Financial Institution. As well as Financial institution have make the
annual payment to the money transfer company according to the bilateral
agreement in the form of dollar. in addition Exchange rate is used to expressed in
the form of

Price ending ( Example: USD/BDT: 85.00) as well as Price reference

(Example: USD/BDT: 85.50)

Marketing Channel

At first remittance sender approach to money transfer company on the basis of

which bank is most nearest to his family members in Bangladesh or which money
transfer company is offering best exchange rate. After making all negotiations with
the money transfer company, sender is given the pin number which is subject to
send to the beneficiary. On the other hand money Transfer Company will send all
information regarding Beneficiary Name, amount of taka, Mobile number, and
24

passport No. sender name, sender country, Beneficiary address, Bank Name and
Branch. After having the pin number beneficiary will approach to bank which is
elected by sender for having the money against Beneficiary pin number as well as
full filling the beneficiary form. In this situation bank check the authenticity by
comparing information given by money Transfer Company with information on the
beneficiary form. If every thing is complying the presentation then bank officers
give money to the beneficiary against it he takes the acknowledgement from the
beneficiary.
From the above mentioned description and Diagram we can say remittance service
has to company the 2 level marketing channels for reaching to the beneficiary.

Promotion
As per the online survey we have got to know most of remittance service oriented
financial organization follows the Web base marketing as well as gives the
information through leaflet. Some of the financial institutions have gone for TV
commercial such as Dhaka Bank, BRAC Bank. As well as every financial institution
use the flyer of exchange houses for informing the customers regarding particular
bank is proving the remittance service through the exchange houses.

Bangladesh Post Office

Bangladesh Post office is a government owned department dedicated to provide

wide range of postal products and public services. It is the premier national postal
communication service holding together a vast country with a large population.

25

Bangladesh post office started Electronic Money Transfer Service (EMTS) on March
26, 2010. However, in response of overwhelming demand, this service has now
been expanded in 2,750 post offices throughout the country including all district
Head Post Offices and Upazila Post Offices. This service has got wide acceptability
and popularity within a short period of time.
Branches
Now Bangladesh Post office is operating through 2,750 post offices to receive and
send money to customers. From next June they hope to provide the service through
5000 post offices.
Profit
Bangladesh Post Office has earned 9 crore 23 lac taka from electronic money
transfer (EMTS) on its first year operation. It has earned 37 crore taka from EMTS in
its two year operation. They hope to earn 50 crore taka in this fiscal year.
Market Segmentation
Market segmentation is a marketing strategy that involves dividing a broad target
market into subsets of consumers who have common needs and applications for the
relevant goods and services. Bangladesh Post Office also segmented its target
market. The service is money transfer.
Basis for segmenting consumer markets
Geographic segmentation
The market is segmented according to geographic criterianations, states, regions,
countries, cities, neighborhoods, or zip codes. It is operating in almost all over
Bangladesh.
Demographic Segmentation
Demographic segmentation consists of dividing the market into groups based on
variables such as age, gender, family size, income, occupation, education, religion,
race and nationality. It is targeting all the variables but in income level it is targeting
the middle and low income people.
26

Psychographic Segmentation
Psychographics is the science of using psychology and demographics to better
understand consumers. Psychographic segmentation: consumers are divided
according

to

their

lifestyle,

personality,

values.

It

is

considering

all

the

psychographic variables.
Target Market
The Bangladesh post office has targeted almost all segments of the target market.
They have gone for the full market coverage.
Positioning
Positioning is the act of designing the companys offer and image to occupy a
distinctive place in the minds of the target market. Its target market is middle and
lower class people. It is very easy to transfer money through Bangladesh Post
Office. Customer has to collect and fill up a small form from post office. He/she will
deposit money and get a pin no. to his/her cell phone automatically. Receiver will
get the pin no. from the depositor and can collect the money from any post office.
Marketing mix
The marketing mix is a business tool used in marketing products. The marketing mix
is often crucial when determining a product or brand's unique selling point and is
often synonymous with the four Ps: product, price, promotion, and place.
Product/Service
The service is money transfer. Bangladesh post office is very sincere to deliver
customers money to their desired destination. Customers also prefer to transfer or
receive money through it because it is reasonable and safe.
Price
For initial 1,000 taka it charges 27 taka and later for every 1000 taka it charges 10
taka. It is cheaper than other courier services. For example, to send 5000 taka

27

Bangladesh Post Office(BPO) charges 67 taka, BRAC bank Bikash charges 100 tk and
S A paribahan charges 70 tk.
Place
The service is available to 2,750 post offices throughout the country including all
district Head Post Offices and Upazila Post Offices. Almost all the customers can go
to their nearest post office and send or receive money easily. From next June it is
aiming to deliver the service from more 5000 post office.
Promotion
Bangladesh Post Office does not use any promotional activities for its money
transfer services. The government does not provide any budget for promotional
activities. They have to depend on existing customer and their positive words of
mouth towards the service to attract new customers. They are getting good and
positive response from their customers.

Recommendations
Remittance and Postal Service as a international money transfer system which is
considered as legal method as well as it has substantial impact on the Balance of
trade payment resulting GDP growth. So this realization should be built at the mind
of citizen of Bangladesh as well NRB and it becomes possible by avoiding all illegal
method for sending and receiving money . In this situation

Financial institution

should enchaining knowledge level of consumers by informing them its importance

by adopting any communication mix. As an domestic money transfer system such
as, bkash, Bankers Draft or Demand Draft (DD), Mail Transfer (MT), Telegraphic
Transfer, EFTN are also important for having the information regarding circulation
money in the economy. Under this category respective company must have
employees with well understand about service for bring the smoothness in the flow
of service. Since these all is legal way to money transfer so here promotion should
be focused on the creating awareness to follow the legal method. Now-a-days S A
Parabahn is getting the popularity but money transfer through this system has
doest have any official impact on the GDP growth so it should take the legal
permission fro the government.

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Reference

1.http://www.prweb.com/releases/money/bangladesh/prweb9100674.htm
2.http://www.dhakainternet.com/2012/01/26/banglalink-initiates-money-transferservice/
3.http://www.brac.net/node/998#.UDx8ZcEgcqM

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