Introduction

HTC mobile company is operating their business in Bangladesh in a very

high competitive situation. Several mobile set companies are conducting

their businesses with low quality mobile phone to grab the market share

in relatively low price. So, the consumers of mobile set are looking

forward to using high quality mobile set with reasonable price. As HTC is

a world renowned brand, it can create strong belief in the mind of the

customers.

Description of the mobile set market in Bangladesh

Mobile phone now a day is a very essential gadget for the people of

Bangladesh to facilitate communication and connection with one another.

Though the beginning of the journey of telecom sector is not a long

history to refer rather this industry is young enough compared to

developed country of the world. The liberalization of Bangladesh’s

telecommunications sector began with small steps in 1989 with the

issuance of a license to a private operator for the provision of inter alia

cellular mobile services to compete with the previous monopoly provider

of telecommunications services the Bangladesh Telegraph and Telephone

Board (BTTB). Significant changes in the number of fixed and mobile

services deployed in Bangladesh occurred in the late 1990s and the

number of services in operation has subsequently grown exponentially in

the past five years.

The incentives both from government and public sectors have helped to

grow this sector. It is now one of the biggest sectors of Bangladesh. As a

populous country, its huge market has attracted many foreign investors to

invest in this sector.

There are 6 mobile phone operators in Bangladesh. These are

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1. Grameenphone Ltd.: Branded as Grameenphone

2. Sheba Telecom Ltd.: Branded as Banglalink

3. Axiata Bangladesh Ltd: Branded as Robi

4. Pacific Bangladesh Telephone Ltd.: Branded as Citycell

5. Teletalk Bangladesh Ltd.: Branded as Teletalk

6. Airtel Bangla Ltd. Branded as [AirtelBangla|Airtel]

There is a strong correlation between the number of mobile phone

operator’s services and handset sellers in any country.

Mobile handset brand available in Bangladesh

The fabulous growth in the mobile phone market the handset distributors

from different countries of the world get allured to take the market

growth opportunity in Bangladesh. So the numbers of mobile handset

sellers are increasing day by day in a fabulous rate. There are great

potentialities to enter and grab the market opportunity in Bangladesh.

There are still unmet demands in the market. So the saturation of

Bangladeshi mobile handset market is far cry. The following hand set are

doing business in Bangladesh mobile market.

1. Nokia,

2. Samsung

3. Symphony

4. Maximus

5. Walton

6. Siemens

7. Micromax

8. HTC

9. Sony

10. Apple iPhone

11. Motorola

12. LG

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Mobile Set industry Analysis:

Porter's Five Competitive Forces Model:

The Five Competitive Forces are typically described as follows:

 

Bargaining Power of Suppliers

The term 'suppliers' comprises all sources for inputs that are needed in order to

provide goods or services. Supplier bargaining power is for the following reasons 

The market is dominated by a few large suppliers for the chips and software.

There are no substitutes for the particular input

The switching costs from one supplier to another are high.

Policies to reduce the bargaining power of the suppliers

They need to integrate with the suppliers

They need to develop their own systems and software

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Competitive rivalry with in the organization

Threat of new entrants

Bargaining power of the customers

Threat of substitutes

Bargaining power of the suppliers

Bargaining Power of Customers

Similarly, the bargaining power of customers determines how much customers can

impose pressure on margins and volumes of the HTC Mobile. The following

reasons improve the bargaining power of the customers.

The mobile industry comprises a large number of small operators so

customers can choice the competitors' brands

Switching to an alternative product is relatively simple and is not related to

high costs

There is the possibility for the customer integrating backwards.

Policies to reduce the bargaining power of the Customers

They need to provide differentiated product with best quality at competitive price

Threat of New Entrants

The competition in this industry is higher because it is easier for other companies

to enter this industry. In such a situation, new entrants can change major

determinants of the market environment (e.g. market shares, prices, customer

loyalty) at any time. There is always a latent pressure for reaction and adjustment

for existing players in this industry. The following factors attract the new entrants

to enter the market.

The mobile market size and growth rate is high

The economic growth of the Bangladeshi people is becoming higher

The standard of living is increasing

Economies of scale in production by using new technologies

Already having the loyal customers

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Policies to create obstacle for the new entrants

They will differentiate their mobile in such a way that requires high initial

investments and fixed costs by the new entrants

They will protect their patents, licenses for their new series mobiles

They will try to create a scarcity of important resources, e.g. qualified expert

staff by employing them in their firm.

The integration of their company with both the suppliers and distributors

will create a problem for the new entrants.

They need to maintain close customer relations

They are making the customer service in such a way that create the

switching costs for the customers

At last they need to try to build close connection with different regulatory

bodies to create a pressure for the new entrants Legislation and government

action.

Threat of Substitutes

The computers can be used a little bit as substitute of Mobile phone but we are

providing different features that can create a pressure for the computer companies.

Competitive Rivalry between Existing Players

HTC considering Apple, Nokia, and Symphony as their prominent competitors.

These competitors create pressure on prices, on profitability for every single

company in the industry. HTC Mobile has to handle the pressure because

There are many players of about the same size in the mobile market

Players have similar strategies

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There is not much differentiation between players and their products, hence,

there is much price competition

Low market growth rates (growth of a particular company is possible only

at the expense of a competitor),

Barriers for exit are high (e.g. expensive and highly specialized equipment).

Defects of this product are following:

Area of defect of this mobile set can be determined by evaluating its marketing

strategy.

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Segmentation: segmentation is the process of dividing the market into group. Here

HTC has segmented the market based on different variables such as demographic,

geographic, psychographic and behavioral factor but they give lack of more focus

on customer’s purchasing power, availability, current trends, style, and attitudes

more specifically.

Targeting: targeting is the process of selecting one or more segment. Here HTC

has selected only upper classes customer segment. It has a strong demand to upper

middle classes customer. They want to buy but its price is not suited according to

their affordability in relation with competitor.

Positioning: HTC is one of the most renowned brands in the world. It has position

its product globally. But they failed to position its brand in our country where other

brands like Samsung symphony Nokia others has positioned perfectly. Different

phones, although appearing very similar are perceived in many ways by users and

their marketing appeals to a very diverse crowd.

Point of parity and difference problem

They are similar in the feature of touch screen

Dual sim facility is absent here.

Usage of internet has been so common in most of the brand

Absence of Anti-radiation device

It can position by using this technology. Battery chargeable with solar power

Product: HTC is one of the reputed brand.it very fashionable stylish phone in the

world. But it has few problems with its feature, design, and color customer service

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centre user interface, accessory is not available.one of the most problem, it is very

difficult to identify original set in the market.

Price: pricing is one of the important factors. Price must be set more carefully.

Price is not suited according to our country.it charge skimming or higher price.it

price is not flexible than others competitors. Pricing has created a burden for its

market acceptance. They also use prestige pricing.

Promotion: promotional activities try to promote it product but in our country,

promotional activities do not appeared. They only use newspaper and magazine

rarely. They even didn’t employ personal sales force. Advertising is totally absence

in our country. They do not participate in exhibition and trade fair.Billbord

sponsorship is also absence.

Sales channel: HTC sales their product through intermediaries like distributor and

deler.They have no relation with selective and exclusive retailer. They don’t give

extra facilities to its retailer such as incentives, gifts and different types of coupon

and credit facility..

Service: Most of the hands set company are providing extra service to its customer through establishing service point but it has no such centre. Other service is not visible than others.

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Area that need to be improved:

Product Strategy:

They need to introduce valued customer with different models of HTC mobile. All

of the models required distinctive features of anti-radiation device and solar power

charging system. High quality smart phone with relatively low price need to

introduce.

Features:

Super AMOLED 4" Touchscreen

HTC use TFT touchscreen. But most of the competitors like Walton symphony are

using few advanced materials with lower cost. AS a result HTC needs to use that

technology with relatively low price. Customer will experience HD-quality video

recording that's clearly detailed, extraordinarily vivid and astonishingly colorful on

the brilliant 4-inch Super AMOLED screen. Movies, games and websites to come

live even in broad daylight thanks to an anti-reflective screen will facilitate. One of

the thinnest, most responsive smartphones in the world, it also uses less power and

has a longer battery life.

Green guides show you the way

In an effort to provide their customers with the latest in technology and the best

user-experience, they can have provided a new environmental-friendly alternative

to a printed paper guide. Virtual Guides provide a "one-stop" support experience

with everything from User Guides, Support Videos, Commercials, and

Simulations.

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Integrated Social Networking Capabilities

HTC need to develop such method which integrates customers email, social

networking and phone contacts into one address book -- and combines customers

Google Calendar and social networking calendars. Also, customer can instantly

post his status and upload pics to Facebook, MySpace and Twitter with the Feeds

& Updates app, as well as instantly see recent posts from friends and family on his

home screen.

Video conferencing

With the assistance of 3g technology, HTC has featured with the video

conferencing technology. An opportunity like this in a hand held device will

delight customer more. Customers can exchange chat messages or take part in a

video conference while checking e-mails, or take notes while watching video

speech by famous speakers. Make it easier than consumer think.

Other feature can be added:

Customers can exchange chat messages or take part in a video conference

while checking e-mails, or take notes while watching video speech by

famous speakers.

Identify the Photograph and provides all related information about the

photograph

HTC Mobile is built on Android Ginger bread, ice cream, sandwich and

powered by a strong processor

HTC Mobile provides efficient Smartphone performance.

Fewer toxic substances in their products

Solar technology can be added.

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Big display and sleek looking give it a stylish appearance

Free 12 GB memory card, which is expanded up to 120 GB

They come with play store so users can download 600000+ fun games,

utility applications, and more.

Quality:

Quality is their prime concern. HTC always tries to provide the customer with the

quality product. Their technical team will use hazardless materials to build a device

which ensures quality at every point. But quality made the product very costly than

competitor product.as a result they need to develop product by using most cost

efficient way to deliver quality product in a low price.

Design:

Design will be such that an easy picking by the hand will be comfortable. There

will be soft but touch sensitive screen that will ensure to show menu or other

function at a slight push to the screen Design must be developed according to

current trends.

Services:

They need to provide free customer care service to their customer

Pricing Strategies of HTC mobile

They can use Penetration pricing strategy for HTC mobile. It means that HTC

mobile will be brought in the market with lower price but comparatively higher

quality. It can be shown in the following figure:

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Promotion strategy for HTC mobile:

HTC has to use aggressive promotional campaign to induce the customers to

purchase the mobile set of this brand. They have completely ignored promotional

activities in our country.so i suggest to focus more effort on promotion to capture

our market.

Push Strategy

HTC can use its sales force and trade promotion activities to create consumer

demand for our HTC series. They can promote HTC mobile set to wholesalers, the

wholesalers promote it to retailers, and the retailers promote it to consumers.

Personal selling and trade promotions are often the most effective promotional

tools.

Pull Strategy

On the other hand they can also using “pull” selling strategy that requires high

spending on advertising and consumer promotion to build up consumer demand for

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HTC mobile

our HTC mobile set. If the strategy is successful, consumers will ask their retailers

for the product, the retailers will ask the wholesalers, and the wholesalers will ask

the producers.

Methods of marketing communications

Advertising is just one element of the marketing communication arsenal, which

can be divided into the following areas:

Advertising – a mass media approach to promotion

Outdoor

Business directories

Magazines / newspapers

TV / cinema

Radio

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Newsagent windows

Sales promotion - price / money related communications

Coupons

Discounts

Competitions

Loyalty incentives

Public relations - using the press to your advantage

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Press launches

PR events

Press releases

Direct marketing - taking the message directly to the consumer

Mail order catalogues

Bulk mail

Personalized letters

Email

Telemarketing

Point of sale displays

Packaging design

Digital marketing – new channels are emerging constantly

Company websites

Social media applications such as Face book or Twitter

Blogging

Mobile phone promotions using technology such as Bluetooth

YouTube

Personal selling – one to one communication with a potential buyer

Salesmen

Experiential marketing

Dealer or showroom sales activities

Exhibitions

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7 S Frameworks to Analyze and Improve their Company

7S Checklist Questions

Here are some of the questions that we need to explore to help you understand their

situation in terms of the 7S framework.

Strategy:

What is their strategy?

How do they intend to achieve their objectives?

How do they deal with competitive pressure?

How are changes in customer demands dealt with?

How is strategy adjusted for environmental issues?

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Structure:

How is the company/team divided?

What is the hierarchy?

How do the various departments coordinate activities?

How do the team members organize and align themselves?

Is decision making and controlling centralized or decentralized? Is this as it

should be, given what we're doing?

Where are the lines of communication? Explicit and implicit?

Systems:

What are the main systems that run the organization? Consider financial and

HR systems as well as communications and document storage.

Where are the controls and how are they monitored and evaluated?

What internal rules and processes does the team use to keep on track?

Shared Values:

What are the core values?

What is the corporate/team culture?

How strong are the values?

What are the fundamental values that the company/team was built on?

Style:

How participative is the management/leadership style?

How effective is that leadership?

Do employees/team members tend to be competitive or cooperative?

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Are there real teams functioning within the organization or are they just

nominal groups?

Staff:

What positions or specializations are represented within the team?

What positions need to be filled?

Are there gaps in required competencies?

Skills:

What are the strongest skills represented within the company/team?

Are there any skills gaps?

What is the company/team known for doing well?

Do the current employees/team members have the ability to do the job?

How are skills monitored and assessed?

7cs Model:

Commodity:

HTC mobile for the customers or citizens

Cost: Total marketing cost of HTC mobile

Communication: Not promotion, marketing communication to inform, persuade

and retain the customers

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Channel: Marketing channels to reach the target customers

Consumer: N- needs, W- wants, S- security, E- education of the consumers

Circumstances: N- national & international, W- weather, S- social & cultural, E-

economic condition that can affect our company

Strategy to avoid Channel conflict:

To avoid channel conflict we institute a uniform price policy for every distributor

and retailer. This policy will resolve the problem of horizontal and vertical

conflict.

Evaluation of Performance of HTC Mobile

Sales of handsets will rise 10 per cent in Bangladesh in the first quarter of 2014,

compared to the previous three months. An aggressive marketing campaign and the

launch of a series of mobile phones targeting the low- and middle-end segments

will boost the sales.

The company plans to sell 20000 handsets worth around 25 crore tk in the 1 st year

of launching. Bangladesh has immense potential in information technology and

telecom sectors. The presence of a large customer base and high economic growth

motivate us to plan for a new product like HTC mobile.

Market demand mainly relies on the population size of a country. Bangladesh has a

total population of 160 million and has witnessed an average 6 per cent GDP

growth in the last several years, creating more demand for the sector.

HTC holds around 10 per cent market share in terms of value in Bangladesh's

handset segment

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HTC is competing with the industry leader -- Nokia -- and its biggest domestic

rival -- LG Electronics -- in attracting young people to its premium devices. The

company launched low-priced dual-SIM sets targeting low-end customers through

differentiating its products.

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Vertical marketing system

We will use vertical marketing system as it helps to make a unified system

by using Manufacturer, distributor, and retailer. Here one channel member

owns the others, has contrasts with them, or has so much power that they all

cooperate. This cooperation is much needed in order to reach the product

timely to the customer. We use the contractual vertical marketing system

whereas independent firms at different levels of production and distribution

join together through contracts to obtain more economies or sales impact

than they could achieve alone. By the use of contractual vertical marketing

system a sharing network will be created that will add value to HTC mobile

thereby will create a loyal customer base.

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