GP Marketing Strategy

8/11/2019 GP Marketing Strategy

1/19

1. Executive Summary

Cellular phone has become such a vital necessity if our day to day life that we can not spend a

single day without it. In the current scenario of todays telecom sector, we find some names

everywhere and their activities are touching our lives. The name of the cellular operators like

GrameenPhone, obi, !anglalink, and Citycell " Teletalk is e#panding with their activities to

gain their respective goals. To e#ecute their goals accurately, they adopt several marketing

strategies. In my report I have focused the vital business strategies from different viewpoints of

GrameenPhone. $rom this analysis we have able to identify their process of capturing different

generations and the key factors of their market acceptance. $rom this study we are able to know

about market segmentations, positions, marketing mi#, %&'T analysis and various special

features of GrameenPhone. Then I have discussed about the competitive advantage of the

company. $rom the discussion we have found that grameenphone is the market leader, banglalink

is the market challenger, obi is the market follower and Citycell is the market nicher. Then last

of all I have analy(ed the %&'T analysis. In %&'T analysis I have tried to discuss about the

strength weakness opportunities and treats as broadly as possible. Then I have discussed about

the marketing mi# strategies. )arketing strategies are the strategies of each company with *ps

that is product, price, place and promotion. I have tried to discuss broadly the companys

marketing mi# strategy. $rom the overall activities, we can say that cellular phone sector is the

most crucial for the growth of our economy and to survive in global market.

I have tried to make the report as comparable as possible. I have tried to input as much data as

possible.

+ P a g e


2/19

2. Company Overview

Grameenphone -, widely known as GP, is the leading telecommunications service

provider in !angladesh . &ith more than /0 million subscribers -as of 1une /002,

Grameenphone is the largest cellular operator in the country. It is a 3oint venture enterprise

between Telenor and Grameen Telecom Corporation, a non4profit sister concern of the

internationally acclaimed microfinance organi(ation and community development bank Grameen

!ank. Telenor, the largest telecommunications company in 5orway, owns 66.27 shares of

Grameenphone, Grameen Telecom owns 8*./7 and the remaining +07 is publicly held.

Grameenphone was the first company to introduce G%) technology in !angladesh. It also

established the first /*4hour Call Center to support its subscribers. &ith the slogan Stay Close,

stated goal of Grameenphone is to provide affordable telephony to the entire population of

!angladesh.

3.History

November 28, 1996: GrameenPhone was offered a cellular license in !angladesh by the )inistry

of Posts and Telecommunications.

March 26, 1997: GrameenPhone launched its service on the Independence 9ay of !angladesh.

June 1998: GP started its services in the port city of Chittagong, the second largest city in the

country. Cell to cell coverage in the 9hakaChittagong corridor also enabled GP to introduce its

service in a number of other districts along the way.

September 1999: GP started its service in the industrial city of :hulna. 'nce again, a number of

other districts came under coverage of GP because of the cell to cell coverage between 9haka

and :hulna. ;arlier in %eptember +


3/19

August 2003: =fter si# years of operation, GrameenPhone has more than one million

subscribers. November 200: GrameenPhone continues to being the largest mobile phone

operator of !angladesh with more than 6 million subscribers.

November 16, 2006: =fter almost +0 years of operation, GrameenPhone has over +0 million

subscribers. GrameenPhone has built one of the most e#tensive infrastructures of !angladesh

and is a ma3or contributor to the development of the national economy.

!ecember 31, 2007: GrameenPhone is one of the largest private sector investments in the

country with an accumulated investment of A%9 B+. billion up to 9ecember /00.

GrameenPhone is also one the largest ta#payers in the country, having contributed nearly !9T

6000 Crore in direct and indirect ta#es to the Government ;#che@uer over the years of which is

amount, !9T +D0 Crore was paid in /006 alone.

GP was also the first operator to introduce the prepaid service in %eptember +


4/19

In every research work there are some limitations faces when conducting different activities. In

the process of research work we also face certain limitations that hampers our general activity.

some of this notable limitations are4

#!e report !as $een con"ucte" wit!in a s!ort time rame

#!e stu"y is main%y ocuse" on pro"uct mar&etin' strate'y on

()*+EE,-HO,E in an'%a"es! $ut it is orei'n company. ut !ere we

emp!asi/in' on (- in an'%a"es!. so $ein' concerne" on%y wit!in t!e (- in

an'%a"es! seems to us %imitation o a stu"y. (- Hea"0uarters is %ocate" in (u%s!an . ut t!ey are very $usy wit! t!eir

re'u%ar tas& so it $ecomes 0uite "icu%t or t!em to 'ive time in outsi"e.

*n" a%so t!ere are some ru%es an" re'u%ation so t!at we cant enter t!e !ea"

oce. So t!at we !ave to ta%& wit! t!eir customer center ocer t!at was a

$i' %imitation to us. (- it is !u'e company an" t!ere are %ot o emp%oyers an" customer care

center is a%so avai%a$%e. t!e stu"y con"ucte" can $e !ampere" as t!e

mar&etin' strate'y o (- cant $e covere" at t!e s!ort time. e 'ot on%y 23

wee&s or preparin' t!is report. 6t cou%" $e a %imitation o t!e stu"y. e ace" a $i' pro$%em $y "oin' t!is report t!at is e%ectricity pro$%em t!at

ta&e %ot o time.

7. +ar&etin' strate'y an" *na%ysis

6.1 MARKETING MIX

)arketing )i# isthe set of controllable tactical marketing tools the firm blends to produce the

response it wants in the target market. The marketing mi# consists of everything the firm can do

to influence the demand for its product. The many possibilities can be collected into four groups

of variables known as the Hfour PsJ product, price, place, promotion. $igure shows the particular

marketing tools under each p.

* P a g e


5/19

Product

?ariety

Kuality

9esign

$eatures

!rand 5ame

Packaging

%ervices

Price

Fist price

9iscount

=llowance

Payment period

Credit terms

Promotion

=dvertising

%ales proportion

Public relation

Personal selling

Place

Channels

Coverage

=ssortments

Focations

Inventory

Transportation

Marketing Mi

ProductProduct means the goods and services combination the company effect that offersto the target market for attention, ac@uisition, use, or consumption that might

satisfy a want or need.

PricePrice isthe amount of money charged for a product or service, or the sum of the

values that consumers e#change for the benefits of having or using the product or

service.

Place Place includes company activities that make the product available to target

consumers.

Promotion Promotion means activities that communicate the merits of the product and

persuade target customer to buy it.

7.2 (rameenp!one -ro"uct +ix

6 P a g e

TargetCustomers

IntendedPositioning


6/19

= product is anything that can be offered to a market and that is potentially valued by a target

market for the benefit or satisfactions it provides, including ob3ects, services, organi(ation,

places, people and ideas.

=s in a service providing business Grameenphone provides different types of service in its

market as its products. In telecommunication business coverage and @uality is more important

than the number of product or service offered. &ith its best coverage and good @uality

Grameenphone has become the number one mobile operator in !angladesh.

Grameenphone has categori(ed its products in two types.

+. %tandardi(ed and/. Customi(ed Products.

6.!.1 "tandardi#ed Product$ %tandardi(ed Product also has been divided into two typesJ Pre4Paid and

Post4Paid. Pre%Paid

The brand name of prepaid products is %mile Prepaid %tandard and %mile -)obile to

)obile.

"mile &Prepaid "tandard'

"hoho( Package

Aapon Package

)ondhu Package

%mile %tandard prepaid allows consumers to make and receive I%9 and 5&9 call in all telecom

operators.

D P a g e


7/19

"mile &Mo*ile to Mo*ile'

%mile )obile to )obile allows its consumers to make and receive call from any mobile

Po+tpaid

Xplore$ Lplore is the brand name of post paid product of Grameenphone. It is categori(ed in

two typesJ Lplore Package + and Lplore Package /. !oth of these Post4paid products has

!TT! -Focal, 5&9, I%9 and ;conomy I%9 connectivity, $le#ible Credit Policy, &ide

collection of value added service-%)%, ;9G;, &elcome Tune, ?oice )ail, ?oice %)% and

International oaming facility.

6.!.! ,u+tomi#ed Product

H!usiness %olution is provided as a customi(ed service to different medium and large organi(ationand Professionals. This customi(ation allows interesting call and sms charge among the member of the

organi(ation, fa# and internet service within the organi(ation branch. The customi(ed service of one

organi(ation is never told to other or disclosed. %eparate %trategic !usiness Anit -%!A is responsible

for the success of each of this product. =s the way, this organi(ation has proved that %!A is important

for the success of a product in its market.

Interestingly Hd43uice, which is claimed as a life style brand of Grameenphone, is not mentioned

with this product line.9ifferent types of value added services are provided with these products as product feature.

6.!.- alue Added "er/ice+$ it! (rameenp!ones V*S consumer can use mo$i%e

p!one or many ot!er purposes t!an ma&in' voice ca%%s. it! (rameenp!ones V*S

consumer can use mo$i%e p!one to8

%end and receive te#t messages, picture messages, voice messages

9ownload ring tones, logos, wallpapers

'btain news updates, cricket score updates

!rowse the Internet and also send and receive e4mails

Transfer data and send fa#

Participate in competitions and vote for opinions

Eealth line services.

P a g e
http://www.grameenphone.com/index.php?id=59http://www.grameenphone.com/index.php?id=118http://www.grameenphone.com/index.php?id=118http://www.grameenphone.com/index.php?id=59


8/19

7.3 (rameenp!ones -rice +ix

Price Ela+ticit0

It is the percentage change in the @uantity demanded when price changes, divided by the

percentage change in the price. GP has gained high price elasticity in the market.

Non%price actor+

The Gold holders pay a high amount of money in buying to get the high facility.

,o+t Anal0+i+

Product cost provides essential information for pricing decisions. To analy(e cost, GP

uses the following stepsJ

6.-.1 ,ompetitor Anal0+i+$ obi is the ma3or competitor of GP as it is consistent in its rates and

facilities and gain a most part of the market shares although !anglalink has more promotional

activities and call charge, they have not been able to hold the market yet. GP fi#es its competitor

on the basis of market share. They fi# price in keeping pace with the competitors price and their

probable responses to an alternative price strategies.

7.3.2 Le'a% *n" Et!ica% Consi"erations O (-

Price iing in channel+ o di+tri*ution

GP publishes articles and advertisements in all national dailies and television about the form and

theavailability of price information for the customers.GP provides its distributors at low cost. In

pricingthe channels of distribution, it has discrimination.

2 P a g e


9/19

7.4 (rameenp!one 9istri$ution :-%ace; +ix

6.2.1Importance 3 4i+tri*ution In GP$ To perform the above task effectively GP uses its own

distribution channels, which are distinguishable from others. &hen initially selecting a channel

of distribution for a new product, the pricing strategy and desired positioning of the product may

influence the choice of the channel. 'nce the channel of distribution design is complete and

responsibilities for performing the various marketing functions are assigned, these decisions

establish guidelines for pricing, advertising and personal selling strategies. GP is very much

efficient in establishing these types of strategies. It helps them to maintain an e#clusive

distribution channel to serve the end4users.

6.2.! GP5+ 4i+tri*ution "trateg0$ The motto of GP in establishing distribution channels isJ to

be the nearest of the customers. =nd e#actly their motto is realistic. GP is the nearest company of

the customers. It has opened all the doors to serve their customers most conveniently.

6..- GP5+ 4i+tri*ution "0+tem $The number of GP owned distribution centers all over the

country is around +2. The centers serve customers directly and deal them with guidelines and

advices to make the communication through network system easier and @uicker. !esides there

are around D0 franchises spreading all over the country right now. These franchises deal with the

customer problems and re@uirementsM they get complaints from customers, they collect creative

suggestions from the valuable customers. =nd other channels4 such as dealers, retailers4 are

making the products and services of GP more diversified to the customers. GP has not come to

its present situation instantly. ?arious types of changes incurred during the years of its business.

&e will see the different channels at different time period one by one.

Initial 4i+tri*ution ,hannel+

< P a g e


10/19

$rom the beginning of the business of GP, it supplied its %I) to the distribution centers. 9ealers

got the product from the centers and sold those to retailers. The retailers, at last, sold the product

to end users. This was a traditional channel. %ometimes, end4users purchased products from

dealers as a whole to minimi(e the purchasing cost. Company did not sell directly to the

customers at that time.

'nly three years ago GP introduced a new and convenient channel of distribution to overcome

the traditional system. The two tails of the channel is the most attraction part to the customers.

Through around 80 distribution centers, GP distributes all key parts of the country. 9ealers, as an

intermediary, purchase the products from the centers and disburse those to two types of retailers.'ne is N e#clusive retail outlet and another one is N non4e#clusive retail outlets are permitted to

sell the products of only GP. They are the guaranteed or authori(ed retailers. 5on4e#clusive retail

outlets can sell other companies product as well as they have no relation the customers or end4

users buy products from either of two types of retail outlets. They get the product or service of

company in the most convenient way at the student time period.

+0 P a g e


11/19

Grameenphone Promotional tools

=dvertising %ales Promotion Public elation Personal%elling

Price packs

Cash efund 'ffers

Pri(es

Patronage =ward

Premium

Price 'ffs

Publications

;vents

5ews

%ponsorships

Public service

activities

Identity )edia

5ewspaper

Television

adio

)aga(ines

5ewslette

r

Internet

Inside %ales$orce

7.5 (rameenp!one -romotiona% +ix

Grameenphone uses promotional activities that communicate the merits of the product and

persuade target customers to buy it. Grameenphone can succeed to ac@uire more than +0 million

customers as of 9ecember /00D not only providing good service but also using high fre@uency

promotional activities. Grameenphone uses most of the promotional tools to give message for its

customers on the new product " e#isting product and product features. Grameenphone must do

more than make good product4 they have to inform customers about product benefits and

carefully position products in consumers mind. To do this Grameenphone promotes the

promotion tools areJ

++ P a g e


12/19

7.5.1 (rameenp!one *"vertisin' process

=ny paid form of nonperson presentation and promotion of ideas, goods or services by an

identified sponsor.Grameenphone advertising can introduce the company and the products. If the

product embodies new features, advertising can e#plain them. =dvertising can remind customers

of how to use the products and reassures them about their purchase.

6..! Grameenphone Ad/erti+ing 3*(ecti/e+

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.

6..- Grameenphone Ad/erti+ing tool+Grameenphone uses different types of media to ac@uire different types of ob3ectives. To select

media depend on the target audience, product characteristics, message characteristics and cost.

The advertising tools that grameenphone uses as a media to communicate with the e#isting and

potential customers areJ

o 5ewspapersJ 5ewspaper covers all sorts of information about grameenphones product. It

mainly covers the informative and reminder advertising.

Target audience )essage characteristics 9uration Cost

Fiterate people. $le#ibility, high believability %hort life Fower

o TelevisionJ Television is an effective media for good mass4market coverage. Television

telecasts messages about new product and it is mostly used for persuasive advertisement.


=ll types of people Eigh attention, high reach, high clutter Fong life Eigh

+/ P a g e


13/19

but teenagers

influences more

o

adioJ &ithin a lower cost, grameenphone broadcast their massage through radio. It is abetter way for persuasive advertisement.


=ll types of people

but teenagers

influences more.

=udio presentation only but usage

mass and cover high geographical area.

elatively

short life

Fower

o )aga(inesJ =n effective media that grameenphone uses as a promotional tool to achieve

the customers awareness about grameenphone and its product. It is an effective media

for informative and persuasive advertisement.


)iddle and Apper4

income audience.

Eigh4@uality reproduction, credibility

and prestige.

long life )edium

o 5ewslettersJ Grameenphone publishes newsletter regularly to inform e#isting customer

as well as potential customer about companys recent activities and offer.


Foyal consumers

and interestpersons

?ery high selectivity, full control. %hort life elatively

low cost

o InternetJ Internet performs effective promotional tools grameenphone advertising. It

gathers all sort of information about grameenphone.

+8 P a g e


14/19


Internet browser Eigh selectivity, interactive possibilities. Fong time

still update

elatively

low cost


15/19

o Patronage =wardsJ

thankyou crown, Be Special, Be crow

Grameenphone offers the prestigious thankyou crown membership to especially cater to you.To enrich your life, grameenphone offers premium services and e#clusive discounts.

>ou will also en3oy e#ceptional service at all our customer touch4points. 1ust introduce yourself

with your Grameenphone number and put your feet up &e will take care of your problemwhile you rela#.

o PremiumJ

-n.o %ree stu%%s /#th a ne/ p&ore )ac"age2 connect#on

&ith every new #plore Package / connection, you will get /6 Te#t %)%s " /6 free ?oice %)%s,

and 6 GP branded ing tones. %ubscriber has to use the free content and ?=% within / months

after activation.

o Price4'ffJ

28 minute+ ree9

=ll !usiness %olutions postpaid subscribers will en3oy +60 minutes free talktime per month for 8

months to call their $"$ numbers.

$or new subscribers, the offer is valid from the date of activation and for e#isting subscribers,

the offer is valid from /2 )arch 0.

+6 P a g e

)embership =verage )onthly Asage 'ver Fast %i# )onths 9iscount on %I) eplacement

Platinum !9T D600 and above +007

Gold !9T *600 to below !9T D600 67

%ilver !9T /600 to below !9T *600 607


16/19

=. (rameenp!one persona% se%%in' process

Grameenphone personal selling is a good way to communicate the target customers. It focuses onmore creative types of selling and the processes of building and managing an effective saleforces

:.1 Grameenphone per+onal +elling tool

Grameenphone mainly focus on inside sales forces that conduct business from their customer

care centre via telephone or visits from prospective buyers.

;. Grameenphone Pu*lic relation+ proce++

Public relation is one of the grameenphone strategic promotion tools building good relations with

the companys various publics by obtaining favorable publicity, building up a good Hcorporate

image.

;.1 Grameenphone Pu*lic relation tool+

Grameenphone public relation uses several tools. The tools are followingJ

o PublicationsJ Grameenphone published some sorts of materials to reach and influence

their target market. %ome publication materials areJ

*nnua% report

*rtic%es

(rameenp!one ,ews%etter

o

;ventsJ Grameenphone arranges some special event to draw attention to new products orcompanies activities. %ome special events that grameenphone arranges fre@uentlyJ

Seminar

Conerence

#ra"e s!ows

o %ponsorshipJ Grameenphone promote their brands and corporate name by sponsoring

sport and cultural events and highly regarded causes. %ome current sponsorship by

grameenphone areJ

Grameenphone sponsors International Conference on ICT

'fficial sponsor of !angladesh Cricket

Grameenphone sponsor International Trade $air in :hulna

+D P a g e


17/19

o 5ewsJ Grameenphone finds or creates favorable news about the company, its product and

its people and get the media to accept press release and attend press conference.

Grameenphone in its official website media site covers all news about grameenphone, its

product and its people.

o Public4%ervice =ctivitiesJ Grameenphone has always been more than 3ust a mobile phone

service provider in !angladesh. It builds goodwill by contributing money and time to

good causes. Public service activities that performed by grameenphone areJ

Mother's Day thankyou vaccination discount. 'n the occasion of Q&orld )others

9ay, subscribers may also receive the following benefitsJ %amorita Eospital offers /67 off on screening test.

1apan !angladesh $riendship Eospital offers 607 off on screening test and free

;PI vaccination. Honoring unsung heroes Grameenphone in collaboration with Prothom =lo, a

leading daily newspaper in !angladesh, organi(ed a program titled HProthom =lo4

Grameenphone %hommanona /00D. The aim of this program was to bring the little4

known development practitioners to the limelight creating inspiration and confidence

for others.o Identify )ediaJ Grameenphone creates a good image by using promotional tools.

Grameenphone promotes the public relationship by its attractive logo, signs, uniform and

others.

1>. +ar&et se'ments

GP segments the market in three main categories. They are

4emographic +egmentation$9emographically ?irgin divided the market into three parts. They

are

=G;J 93uices target market is young generation people aged between +6 and

/6. %e#4wiseJ 93uice does not differentiate se# wise. They are always aiming at both

male and female.

IncomeJ =s 93uice s aimed to young generation they assume that their target

customers will have limited income and that income will not be high.

+ P a g e


18/19

Geographic +egmentationJ5ow they are mainly targeting the urban areas. People who are

trendy, young and uni@ue are their target market. In !angladesh, their ma3ority sales come from

the big metropolitan cities and urban areas.

P+0chographic +egmentationJ 93uice mainly segments the market based on psychographic

lifestyle, which means they consider their consumers life style to determine the segment. 93uice

is for those, who want to e#perience something uni@ue and trendy. This sort of nature is mainly

found within the young generation who wants to be different among all around them.

11. -ositionin' strate'ies

Positioning of GP is mainly focused on !usiness class and younger generation. 5o other telecom

company offers any service package which influences corporate persons andyoung stars to rock

in life, to be a part of something uni@ue, to make them feel having an image of a world of their

own. The uni@ue image of H9urotto 3otoi houk,kache thakun has been successful to get the

attention of young as well as corporate users all over the country. It has become like todays

trend to be a member of this Hdunia and young users actually feel proud to be a part of it.

12. Competitors 6normation

GP does not have any direct competitor as no other company has a service solely aimed at mass

people and younger generation. !ut if we talk about other mobile service providers then they

have strong competition with !anglalink, which is the local company for ;gyptian owned

'rascom telecom. There are other competitors such as obi, Citycell, =irtel Telecom and

Government subsidi(ed Teletalk.

13. Conc%ution

$rom the overall report a viable finding is that GP maintains a strategic marketing plan that made

it brings ma#imum share of customers under its network coverage. Grameenphone as a whole is

+2 P a g e


19/19

the leader in the markei in terms of setting marketing strategy. !esides its differentiation and

positioning strategy regarding holding current and retaining e#isting customer is another value

addition by the company. Customer satisfaction and loyalty are ma3or reasons for grabbing the

largest market share in !angladesh. Fast of all I would like to conclude that by din of a

successful marketing strategy GP has reached the peak of the market and hopefully continues

throughout years.

+< P a g e

Date post:	03-Jun-2018
Category:	Documents
Upload:	jakirbnk
View:	222 times
Download:	0 times

GP Marketing Strategy

Documents