Grameenphone is the leading telecommunications provider in Bangladesh. Their marketing strategy focuses on segmentation, targeting, positioning, products, pricing, place, and promotion. They target premium, upper middle class, and middle class customers. Their products include prepaid and postpaid plans for consumers and businesses. They use a variety of advertising tools like TV, radio, and print. Research findings show room for improvement in areas like customer service, package options, and call rates. Recommendations include increasing service awareness and developing new products and services while ensuring proper awareness of offerings.
3. Fazlay Hossain Chowdhury
UG 01-21-09-013
BBA, 21th Batch
Dept. of Business Studies
State University of Bangladesh
4. Marketing Strategy
of Grameenphone
Segmentation
Targeting
Positioning
Products
Pricing Strategy
Place
Promotion
The advertising tools
that Grameenphone
uses
OVERVIEW OF
THE COMPANY
Marketing and Sales
Division of
Grameenphone
Product & Market
Planning of
GrameenPhone
Selling procedure of
GrameenPhone
Grameenphone
Industry analysis
with Porters five
forces
Survey Findings
Recommendations
Conclusion
5.
6. On the Independence Day of Bangladesh in the year 1997,
Grameenphone Ltd launched itself with the mission of “leading the
industry and exceed customer expectations by providing the best
wireless services, making life and business easier.”
The values of the Grameenphone Is “make it easy”, “keep promises”, “be
inspiring” and “be respectful”.
The brand promise of the organization is “stay close”.
Customer loyalty, competent workforce and consistent strategy are the
core components that have helped Grameenphone reach this highest
position in Bangladesh
7. Product & Market Planning Department (P & MP) is a vital part of
Grameenphone in terms of its importance and role The central
innovative department of Grameenphone is the P & MP department.
P & MP is responsible for communication with different departments
about existing products
P & MP gets feedback from Sales, Customer Management and Market
Communication departments regarding Customer needs and Market
requirements. Feedback helps in redefining an existing product.
P & MP gives shape and form to berg ideas in the process of developing a
new product
8. P & MP facilitates launch of the products within Grameenphone
Training and support for a product to all departments.
P & MP is responsible to co-ordinate with Operation & Maintenance,
Information System and Billing departments to get solutions check the
functionality of Product features and prices.
9. To build management with the clients, to make a good relationship with them, to
acknowledge them about the GP service, its advantages, coverage area, and above all
to provide information about GP in a convincing manner.
All the necessary arrangements to sale the product which includes handout GP
application form & brochures
Help the customer to fill up the application form including the agreement.
Tell & help the customer to pay the amount for subscription including govt. fee and
security deposit in the designated banks in cash.
Receive the completed application form with bank deposit slip and all the documents,
check carefully and ensure the signature with date.
Make a photocopy of the SIM card with its number, mobile number and ID number.
Inform the subscriber to contact Customer Care Department on 121 for further inquiry.
Thanks the customer for choosing GP
Forward the subscriber’s file to the Billing department for activation.
10. Strategy is a high level plan to achieve one or more goals under
conditions of uncertainty. Innovative marketing strategy reach
them to highest position. In marketing strategy Grameenphone
focus area areSegmentation
Targeting
Positioning
Products
Pricing Strategy
Place
Promotion
The advertising tools
11. GP has targeted the Premium, upper middle class and middle class
people
The motto behind this only those segments should be targeted who have
value time and have the paying capacity.
Gp Offers Djuice for students, Business solution for business people and
also Smile has been offered for thouse who are like to communicate with
there friends and family member.
12. A well-defined target market is the first element to a marketing strategy
The target market and the marketing mix variable of product,
distribution, promotion and price. the major elements of a marketing
mix strategy that determine the success of a product in the market place.
Grameenphone influenced his target market by his advertisement.
For different types of target market Grameenphone launched different
types of product and different types of advertisement.
13. Grameenphone has planned their strategy as below while positioning:
DJuice, Targeted the youth extremely well.
Smile Pre-Paid & PSTN, because of Low flat tariff and nationwide
mobility, it’s a Pre-paid service, no monthly rent required and instant use
due to pre-activation, no hassles of bill payment.
Xplore because of low flat tariff, nationwide mobility, connectivity to
other operator’s mobiles in different zones.
EDGE Service through mobile because of easy access, interesting theme,
and reasonable rate and for being new and innovative.
14. There are six products currently being offered by Grameenphone. The
products are: Nishchinto, Bondhu, Amontron, Shohoj, Spondon, Aapon,
Smile, djuice, My Zone . In addition, Grameenphone offers a number of
Value-added Services (VAS) to its subscribers. These include Text
Messaging (SMS), Voice Mail, Fax/Data service and Wireless Application
Protocol (WAP), Internet
16. GP currently has three packages in the market. When the company
started out, government regulations had prevented it and other telecom
companies from selling SIM cards alone, but rather had to bundle them
with a handsets.
In fact, according to customer feedbacks, GP packages are all attractive,
since the connections would have attracted a lot more customers, if only
the Price could be improved.
17. Here comes the distribution channel of Grameenphone. They has a
strong network of distribution channel. The motto of GP in establishing
distribution channels is to be the nearest of the customers. And exactly
their motto is realistic. GP is the nearest company of the customers. It
has opened all the doors to serve their customers most conveniently.
They maintain their distribution channel like follows :
18.
19. Grameenphone maintain the strongest promotional strategy among the
telecom companies of our country. Basically Grameenphone uses
advertising as a promotional tool to make a communication task to be
accomplished with a specific target audience during a specific period of
time.
20. Informative advertising
Telling the market
about a new product
Suggesting new uses
for a product
Informing the market
of a price change
Explain how the
product works
Describing available
services
Building a company
image
Persuasive Advertising
Building brand
preference
Encouraging switching to
Grameenphone
Changing customer’s
perception of product
attributes
Persuading customer to
purchase now
Persuading customer to
receive a sales call
Reminder
Advertising
Reminding
consumer that the
product may be
needed in the near
future
Reminding
consumer where to
buy it
21. There are several media Grameenphone use for there advertising
Newspapers
Television
Radio
Magazines
Newsletters
Internet
22. Porter’s five forces Model is a key Analytical Tool for Diagnosing the
Competitive Environment. It has used five forces to reveal the state of
competition. It has become an important tool for analyzing an
organizations industry structure in strategic processes. It allows the
strategic thinkers to formulate appropriate strategy for a particular entity
through systematic and structured analysis of market structure and
competitive situation, and helps improve the position of the
organization. The model is presented through five competing forces
which are given below.
23. The degree of rivalry within the industry
Currently, there are 6 competitive companies (Grameenphone, Robi,
Citycell, Banglalink, Teletalk & Airtel) in the market Out of which, 47%
share of the market belongs to GP, 7% to CityCell, 19% to Robi, 20% to
Banglalink, 4% to Teltalk and the rest 3% belongs to Airtel Telecom. GP
holding the major share maintains a ‘market leader’ strategy to all other
players in the market. The telecom market intends to grow at
penetration rate of more than 1.33%; where GP has already penetrated at
1.56%. Number of competitors is low but the competitors are powerful
and highly competitive. That’s why the degree of rivalry within the
industry is very high.
24. Threat of new and potential entrants
As Grameenphone is having the highest number of subscriber and there is
a high demand for their service, customer pulling is also high. So, they
are on the way to achieve economies of scale. Grameenphone became
popular within short period of time through their effective promotions.
Company made lot of press releases, TV, radio Ad, which made the name
“Grameenphone” familiar to the customers. High switching cost for post
paid subscription is a barrier for the potential entrants in this industry.
As the technology, expertise, capital needed for this sector is not easily
obtainable that’s why switching cost is higher.
25. Threat of substitute products:
BTTB has already reduced the NWD and ISD call charge. Furthermore,
around 50 private companies get the license to provide wireless phone
and lane phone service. Rankstel, North Bengal Phone Company One Tel
has already started their operation. Rankstel provides wireless phone
service and it covers Dhaka, Gajipur. The growing number of substitute
products indicates that the existing players have to face threat from these
products. But again, in other sense I can say that mobile phone service
gives the freedom of mobility which its substitute cannot give. Hence,
the threat of substitute is moderately is low.
26. Supplier’s bargaining power
Grameenphone has been maintaining good relation with its suppliers. The
company has strategic coordination with its suppliers; hence its suppliers
bargaining power is moderately low. GSM technology give the advantage
to the company and its subscribers to change mobile set any time they
want. Again, the industry has lots of suppliers, as a result
Grameenphone has possible alternative to change suitable supplier.
27. Buyer’s bargaining power
There are many players in the market, which gives the customers
alternative and power to choose different brand according to their
preference. That’s why buyer concentration is high. The competition in
the market makes the customer more powerful and the companies more
competitive among each other’s.
28. The degree of rivalry
within the industry
HIGH
Industry attractiveness is
low
Threat of new and
potential entrants
Moderately low
Industry attractiveness is
moderately high
Threat of substitute
products
Moderately low
Industry attractiveness is
Moderately high
Supplier’s bargaining
power
Moderately low
Industry attractiveness is
moderately high
Buyer’s bargaining power Moderately High
Industry attractiveness is
moderately low
29. In order to measure the market position of Grameenphone a series of
questions were asked to the customers with the help of a questionnaireI
asked total sixten closed end question to thirty subscribers. In the basis
of strongly agree to strongly disagree. So the point of strongly agree is 5,
and strongly disagree is 1. So the highest point for a question is 150 (30*5)
and the lowest point is 30 (30*1). Here I find out the total point for each
question and also find out the average point of each question.
30. Average point subscribers status
1. Do you satisfied with the network coverage of the
provider? 4.33 Satisfied
2. When you call to GP helpline you always get the
service? 3.47 Moderate
3. When you buy a new service does it activated
quickly? 4.13 Satisfied
4. Do you provider fulfill your need with the current
product and service? 4.43 Satisfied
5. The EDGE service of Grameenphone is very good? 3.53 Moderate
6. Price of GrameenPhone’s different package is
affordable? 3.43 Moderate
7. .Call rate of GP hotline Grameenphone is
reasonable? 3.20
Moderate
9. GP helpline is very helpful in meeting my queries
and other needs? 3.53 Moderate
10. Does your provider contacts you to ensure that
complain have been fixed? 2.47 Moderate
11. Does your provider contacts you when a new
product or service will come to market? 2.97 Moderate
12. Does your provider follow-up when you need? 2.07 not satisfied
13. Different packages offered by Grameenphone
match with your preference? 2.70 not satisfied
14. Call rate of Grameenphone is reasonable? 1.57 not satisfied
15. Do you regular watch television add of
Grameenphone? 4.50 Satisfied
16. If another company comes up with the similar
offers, would you still be loyal to GP? 3.23 Moderate
31. Service learning hot line
Telemarketing
Field campaign
Publishing Service application manual
Promotion days
Increase subscribers’ number
Develop network
Strategic collaboration with the other companies
Patents, protection of intellectual property
Maintain Brand image
32. As the research finding show the poor service awareness status of
Grameenphone subscribers, hence obviously GP has to increase
awareness of subscribers. Increased service awareness status will raise
the service value of GP, increase subscribers usages rate result increase
revenue for GP. If continuous development of new product and service
cannot simultaneously aware subscribers then it will neither worth much
to subscribers nor add value to the company. Hence, it is clearly
observed there is gap between services provided and services awareness.
Now GP has to consider this gap minimization and maintain alignment
with service offering and service awareness. Otherwise, in the long run
new services innovation will not give its ultimate success.