Executive Summary
As we were assigned to prepare a term paper on “Grameen Phone”, we had prepared this report based on the due topic. In this term paper we at first gave an overview of the corporate background and corporate history of Grameen Phone. They have mainly four types of service offerings those are Smile prepaid for the mass customers, Explore postpaid for the high income earners, Djuice for the youth segment, Business solution for the businessmen and executives, Public Phone for the urban low income segment, Village Phone for the Rural lower income segment and so on. Their product designing and market segmentation was appropriate enough to meet the customers needs and wants. Their all products perfectly match with their target customers income level, life style, profession. In case of pricing they follow value based pricing. Their pricing strategy is also appropriate and reasonable for their target markets income level. They also chose the right promotional tools to reach the customers more quickly and efficient way. For example they set bit higher price for the Business solution uses and explore users, as they are the higher income groups. They set bit lower prices for the village phone and public phone, as they are within the lower income segments. They also chose the right promotional tools to reach the customers more quickly and efficient way. Their distributing systems were appropriate enough to reach their products to the target customers more quicker way. They also provide some value added services. Those are sms based alert services , voice based services, infotainment services, innovative services (like Cell Bazaar), message service, Customer care related services and so on. We can also consider GP as a successful follower of the right business trend. As in this globalized world customers are right now becoming more demanding, the GP introduce all of their core services and value added services in such a way that they can fulfill the highest demand of any customer groups. Overly we can consider the GP as successful telecom service provider.
CHAPTER-1 (INTRODUCTION)
As our course Instructor, Ms. Sarahat Salma Chowdhury, Lecturer, Department of Business Administration, East West University assigned this term paper to us as a part of the curriculum of the course “BUS101” offered us during the BBA program, we are submitting our due appraisal. This project report is prepared on the topic “Grameen Phone”.
1 1.1 Objectives of the report: The basic objective of this report is to write a short but informative history about Grameen Phone and we have discussed about the recent activities and information on the company. 1.2 Specific Goals: The Specific tasks to be accomplished have been outlined below:
Provide a short background of Grameen Phone Reason for the creation of the Intellegent Queue Management System Provide a basic understanding of how the system works Highlight customer feedback- Both Positive and Negative Provide ideas about their products and services that Grameenphone offers
1.3 Scope of the report:
This term paper is a comprehensive study of Grameen Phone, the top most telecom service provider in Bangladesh. So we had much scope to collect necessary data from the primary and secondary sources, analyze those and to prepare this term paper with our business knowledge that we have gained from the respective business courses. This term paper reveals the overall scenario of Grameen Phone. But yet after, we have tried to give an overview of the company.
1.4 Methodology:
Data collection for the term paper has emplyed both primary and secondary sources, which include:
Primary Sources: Interviews with employees of Grameen Phone Interviews with customers Term paper guideline document Went through the text, related journals, and also the company’s respective websites.
Secondary Sources: GP Annual Report 2009- Final 2 1.5 Limitations:
This term paper was made under various stressful situations and thus to make it more easily we had to make some adjustments. Still then there were some limitations. Those limitations are given below:
The knowledge was really limited as because we are inexperienced. Time limitations in preparing the term paper. We had the lacking of understanding many terms and conditions of many of the materials and other related stuffs in the primary and secondary information. Lack of Information about the various products and services of the companies. Lack of maturity as we have made this term paper for the first time.
CHAPTER-2 (COMPANY BACKGROUND )
2.1 About Grameen Phone: Grameenphone Ltd., the largest telecommunications service provider in Bangladesh, received its operating license in November 1996 and started its service from March 26, 1997, the Independence Day of Bangladesh. Now, after 12 years of successful operations, Grameenphone is the largest mobile phone service provider in Bangladesh, with more than 23 million subscribers as of December 2009. The Company was successfully listed in November 2009 – which was the largest IPO in the history of the Bangladesh capital market. Grameenphone provides services to rural and urban customers across Bangladesh, where mobile telephony is acknowledged as a significant driver of socio-economic development, both for individuals and the nation.
Grameen Phone is actually a telecommunication service provider, right now successfully operating in Bangladesh. Besides the communication they also provide other telecom related and value added services. Grameenphone is now the leading telecommunications service provider in the country with more than 20 million subscribers as of June 2008. Grameen Phone started their journey at the starting of the year 1997. At November 28,1996 Grameen Phone offered a cellular license in Bangladesh by the Ministry of Posts and Telecommunications. They launched its service on the
3 Independence Day of Bangladesh at March 26, 1997. At November 5, 2006 after almost 10 years of operation, Grameenphone has over 10 million subscribers. Presently, there are about 30 million telephone users in the country, of which, a little over one million are fixed-phone users and the rest mobile phone subscribers.
2.2 Share Holders and Corporate Governance:
The shareholding structure comprises of mainly two sponsor Shareholders namely Telenor Mobile Communications AS (55.80%) and Grameen Telecom (34.20%). The rest 10.00% shareholding includes General public & other Institutions.
SL Name of Shareholders Number of Ordinary Shares Percentag held e 1 Telenor Mobile Communications AS 753,407,724 55.80% 2 Grameen Telecom 461,766,409 34.20% 3 Grameen Bank Borrower’s Investment Trust 11,037,221 0.82% 4 IDLC Finance Ltd. Portfolio A/C 6,598,800 0.49% 5 AB Investment Limited – IDA 6,495,300 0.48% 6 IFIC Bank Limited 3,684,900 0.27% 7 LankaBangla Finance Limited - Portfolio A/C 2,161,800 0.16% 8 United Commercial Bank Ltd. 2,096,700 0.15% 9 Grameen Capital Management Ltd. - 1,693,900 0.12% Investors’ A/C 10 Rupali Bank Ltd. 1,283,800 0.10% 11 Popular Life Insurance Co. Ltd. 1,234,400 0.09% 12 Prime Bank Ltd. – Investors’ A/C 1,158,100 0.09% 13 Trust Bank 1st Mutual Fund 1,064,200 0.08% 14 Union Capital Ltd. – Investors’ A/C 1,059,000 0.08% 15 ICB Unit Fund 975,800 0.07% 16 The City Bank Ltd. 975,600 0.07% 17 The Trust Bank Ltd. 894,300 0.06% 18 Trust Bank Ltd. – NRB A/C 891,800 0.06% 19 Grameen One : Scheme Two 872,800 0.06% 20 People’s Leasing and Financial Services Ltd. 799,700 0.06% Total 1,260,152,254 93.31%
Chapter-3 (Human Side Of Business)
3.1 Management:
4 The Management Team is the executive committee of Grameenphone managing the affairs of the Company. The management Team consists of the CEO and other key leaders across the Company. The CEO is the leader of the team. Management Team endeavors to achieve the strategic goals & mission of the Company set by the Board of Directors. The Management Team meets on a weekly basis to monitor the business performance of the Company.
3.2 Management Level: Top Level Managers Middle Level Managers First line managers
3.3 Organizational Structure :
Board of Directors
Health, Safety, Human Resources Audit Committee Treasury Committee Security and Committee Environment Committee
The subordinates, 1st line officers, engineers, technicians etc work under these committees.
3.4 Motivation And Leadership Style: Grameenphone phone is self motivated as a organization and they follow the democratic leadership style. That’s why they are one of the most superior telecom companies in the market.
5 3.5 Training Program: GP does not offer a fixed variety of training programs. They offer training programs in each and every different sectors of the company to train their employees so that they can achieve their goals and targets. Training programs of Grameenphone has gained huge success to accomplish their targeted goals in the recent years.
3.6: Number Of Employees: There is more than 5,500 people currently working in Grameenphone as employees in different sectors like administration, finance, public relations, customer care, marketing, management, Advertising, technical team etc.
Chapter-4
(Production and Marketing)
4.1 The Four PS:
The four Ps are actually the strategic weapons for the companies to develop and differentiate their products, offer those to customers and satisfy their perceived value by providing superior value to them. From the marketing point of view we termed those as Marketing Mix. If a company wants to target a specific market and to provide a superior value it wouldn’t be possible for them without simultaneously formulating a general marketing strategy for that targeted market or that particular segment. Since customer value is delivered by the marketing strategy, the firm must develop its general marketing strategy as it evaluates potential target markets. Marketing Strategy is basically the answer to the question: How superior customer value can be provided to the target market? The answer to this question requires the formulation of a consistent marketing mix. The Marketing Mix is actually the set of marketing tools the firm uses to pursue its marketing objectives in the target market. The investigators and market experts classified those tools into four broad groups that they called the four Ps of marketing: Product, Price, Place, Promotion. This marketing mixes or tools are vividly described below.
4.2 Product:
6 A product is anything a customer acquires or might acquire to meet the perceived need. That means Product is something that has as ability to provide a perceived value to the customers and customers buy products or services to satisfy a specific need or to solve a specific problem. Customers are generally buying need satisfaction, not physical product attributes only. For example if a person purchase a soft drink, he actually purchased the satisfaction of his specific need that is thirst. Simillerly when a person is purchasing a package of telecommunication service, he is actually purchasing a solution to solve his communication problem. In the same way when a firm producing cosmetics for consumers, in the factory they may manufacturing cosmetics, but in the store they are actually selling hope.
4.3 Price:
Price is the amount of money one must pay to obtain the right to use the product or service. That means it is the monetary value (to some extant psychological value) of the product the customers must have to forgone to get the benefit of the product. One can buy the whole product or the ownership of the product or a limited usage of the product. For example when a person is purchasing a pen, he is purchasing a whole tangible product. When he purchasing an apartment, he is actually purchasing the ownership of the product. When he rent or lease any product such as video, he is actually purchasing a limited usage of the product. So based on the attributes, benefits and usage marketers set the prices of their products.
4.4 Place (Distribution):
Placement or Distribution means making the product available where the target customers can buy it. After producing a product a firm needs to find out the way how quickly and efficiently they can send the product to their potential customers. This way of distributing or the way of sending or the way of making the product available to the customer is called Placement or Distribution. After the production if the product is not provided to the customers in time, then the product will lose the reliability of the customers. That’s why the placement or distribution is important for the firm to ensure the continuous sales and sustainable profit margin. For example the most popular and widely used distribution channel structures for the consumer market are as follows.
Manufacturer Manufacturer Manufacturer Manufacturer 7
Consumer ConsumerRetailer WholesalerConsumerRetailer WholesalerConsumerRetailerJobber Figure: Distribution channel for consumer market Among these several types of ways depicted above the firm has to chose the best way that will enable them to serve their product to the customers within a very short time and at a least cost. For example for door to door selling, mail order, telemarketing, TV selling, Internet selling the firm don’t need to maintain wholesaler or retailer they can provide this type of services directly from the manufacturer to customer. This is also called Direct Marketing.
4.5 Product Mix:
Grameenphone is providing telecommunication services. As we know that service is different from the product for its intangible attribute, it is bit difficult to show the products of a service provider. So products of service provider could be shown by categorizing them from the perspective of service offerings. The comprehensive line of products and services of GP are at a glance described bellow.
GP Smile Prepaid: GP Explore Postpaid:
. Target Market : Mass Customers . Target Market : High Income Mass . Product Type : Prepaid and professionals . Offering competitive tariff, easy . Product Type : Postpaid recharge and balance cheek . Offering competitive tariff with
8 facilities etc feature such as unlimited internet, flat call tariff, easy bill payment facilities etc
Djuice: GP Business Solutions:
. Target Market : Youth . Target Market : Business . Product Type : Prepaid . Product Type : Postpaid & Prepaid . Focus on music, messaging and . Customized solutions for community to appeal to the youth Corporations, SME and SOHO . Completely separate from the businesses Grameenphone brand . Provides closed user group functionality, business messaging, Blackberry services, Priority Customer services etc
GP Public Phone: GP Village Phone:
. Target Market : Urban Low Income . Target Market : Rural Segment . Product Type : Prepaid for calling . Product Type : Prepaid for calling businesses businesses . Created specifically to the rural . Low tariff appealing to use the subscribers to generate income phone to generate businesses with from phone business through bonus on usage subsidized tariff
4.6 Brief Description About The Products:
4.6.1 GP Smile Prepaid: It is a simple prepaid package for mass customer with distinctive features and offers. This package is basically to satisfy the communication need of the middle class and to some extant lower income earners. With the tag line “Bring SMILE into your life” they designed this package to keep customers smiling. For example for mobile to mobile smile package the start up price is BDT 490 with inclusive of BDT 60 talk time. It also offer lower rates, for example SMILE subscribers can enjoy a reduced tariff of only tk 1.50/min (7am-12am) for all GP to GP calls and tk 2/min to any other operator (24 hours) with SMS and other promotional offer.
9 . SMILE SMS: SMILE offers the opportunity to SMS at affordable rates. One can also enjoy F&F SMS at the lowest rate. Your F&F number is your SMS F&F.
. Economy ISD rates: SMILE subscribers can easily call friends or families staying abroad just by dialing 012 followed by desired numbers and talk at economy rates (012 + desired number). Dial 012 followed by the country code, area code and your desired number for enjoying low international call rate.
. Caller ID: It is a basic feature of SMILE that allows one to view the number that is trying to reach him or her.
. Call Waiting: It enables one to receive a second call while he is already talking to another person. When his call waiting feature is activated (on his mobile), he will be usually notified by a short beep sound. he can then either reject the second call or put the first caller on hold, talk to the second caller and then return to the first call. Call waiting can be activated by calling *43#, deactivated by calling #43# while its status can be checked by calling*#43#.
. Call Conference: It is a unique & beneficial service that enables one to interact with multiple people at the same time. It allows him to make up to 5 calls at once and connect all the calls so that everyone can talk to each other. This feature is handset dependent.
. Call Divert/Call Forwarding: One can divert/forward his incoming calls to any other number when his mobile is off, busy, cannot answer phone or out of coverage area.
. Call Barring: Depending upon one’s mobile handset, he can restrict any unauthorized use of his mobile phone (incoming and outgoing).
4.6.2 GP Explore Postpaid:
It is a simple postpaid package for high income mass customers and professionals with distinctive features and offers. This
10 package is basically to satisfy the communication and business related needs of the high income earners and to some extant middle class mass. With the tag line “Xplore the joy of doing more” they organized this package to let the customers discover the pleasure of doing much more. It is packed with a treasure of new features and facilities that keeps customer in touch with their loved ones and gives them access to unlimited information and entertainment. Xplore Postpaid is available with Mobile to Mobile with BTCL connectivity & ISD. BTCL incoming is absolutely free in xplore. All new xplore subscribers will now get EDGE P3 (12am-8am) and MCA (Missed Call Alert) subscription free for the fist 3 months, along with 100 SMS free of charge over the same period. Customers can get started with xplore Anywhere Anytime! Xplore Postpaid has come up with a very attractive and competitive tariff. For example the xplore subscribers can enjoy a tariff of tk 1.30/min to any mobile with four FnF at tk 0.50. customers. Thank you benefits for the Xplore subscribers are of the following types:
Thank you discount
Discounts from Thank you Partners
Crown Membership Benefits a. Thank you discount:
Grameenphone values its relationship with its subscriber all the time, the relationship that has developed throughout the years and has helped us to reach the number one spot. As a sign of gratitude Grameenphone brings a special gift, ‘thankyou'.
As part of thankyou, customers will receive a thankyou discount, depending upon their usage and length of the relationship with Grameenphone, every month. thankyou discount is calculated on their outgoing voice calls only (excluding BTTB charges, roaming charges, monthly line rent, VAT & other taxes)-see the below matrix
The discount that they receive in any month will be displayed in the Post-paid bill of the next month. They can get up to Tk.1000 worth of monthly discount.
b. Discounts from Thank you Partners:
11 At the thank you Partner outlets, any eligible Xplore subscriber(activated for more than 180 days can enjoy discounts on purchase. c. Crown Membership Benefits:
Special Discounts at various exclusive local and International thank you crown partners
Thank you partner discounts at more than 300 thank you partner locations
Priority at 121
Special discount on SIM replacement
Preferential treatment in GPC/CMC
Apart from that the subscribers can enjoy FnF services with convenience recharging process by scratch card, flexi load and balance transfer. Along with all the benefits, all new and existing customers of GP xplore postpaid will continue to enjoy quality network and best customer service through edge package and GSM technology. Some such types of services are described below.
Caller ID: It allows GP subscribers to view the caller's ID before answering the call. Call Waiting: It enables subscribers to receive a second call while they are online with another call. When their call waiting feature is activated (on their handset), they will be usually notified by a short beep sound. They can then either rejects the second call or put the first caller on hold, talks to the second caller and then return to the first call. Call Conference: It allows them to make up to 5 calls (max) at a time and connect all the calls to make a conference call. This feature is handset dependent. Call Divert: It allows them to divert the incoming calls to any mobile number or BTTB number.
Call Barring: It allows them to restrict any unauthorized use of their mobile phone by imposing restrictions on certain types of calls (incoming and outgoing). This feature is also handset dependent.
4.6.3 Djuice:
12 Djuice is a particular market niche of Grameenphone. It is also a simple prepaid package mainly designed for the youth market segment. This package is basically organized to satisfy the communication and entertainment need of the young generation. Grameenphone successfully launched djuice in April 2005. This was the first time in Bangladesh that a Brand totally dedicated to the youth, was launched by a mobile service provider. With their separate taglines “Duniar Shukh” , “Welcome to Djuice dunia” they actually invited the youth group in a different world of entertainment where they can enjoy the latest and coolest music, movies, mobile games, sports, and so much more. From this package they can also download the hottest & most happening wallpapers, logos, screensavers, themes, ringtones, welcome tunes, video tones, true tones of their favorite music albums, groups & celebrities, movies and stars, sports actions, events and icons, and so on. They can get those services either from the djuice website www.djuice.com.bd, wap.djuice.com.bd or by sms short code 3030. Today the young generation are more likely to linked with the world best technologies and amusements. To facilitate them one step ahead GP introduced this djuice.
Djuice offer it’s subscriber lot’s items with a convenient start up offer with a convenient call rate. For example it’s start up price is BDT490 with two FnF and sms at 0.50 and allows djuice to djuice at the rate of BDT 0.75/min from 7am to 12 pm. As like thank you of Smile package djuice offer a separate package titled as “Xtra Khatir”. As like thank you bonus, depending on their usage ,djuice users can get some extra discount at the end of a certain period.
4.6.4 GP Business Solutions:
This package is actually a combination of prepaid and postpaid function to facilitate the business related needs of the corporations and small or large business organizations. The corporations and business organizations need to communicate among themselves for various kind business related issues like taking information, make contractual agreement, place purchase order, 13 ensure shipment and so on. To facilitate all types of business activities GP designed this business solution package to meet up the need of their corporate clients. They mainly provide the business organizations the following services.
Call services: If a businessman or an office executive go anywhere in the country, he will always be connected with his colleagues through his Business Solutions connection. Business Solutions has a wide network coverage for assured connectivity and the technical expertise to ensure clients business moves as smoothly as they want it to. They have full access to all mobile, fixed phone and international numbers; so sit back and enjoy call features that make it more than just a call. Clients can also Get free minutes to talk with your near and dear ones, based on your committed usage. This unique plan for Business Solutions postpaid connections allows subscribers to commit a minimum usage per month; based on your committed usage, you can enjoy free minutes to talk to your F&F and CUG numbers. For example, if you commit Tk. 2,500 usage per month, you will enjoy a special flat rate and 250 free minutes of talk-time.
F & F numbers: Enjoy special tariffs for 3 special numbers (F&F) of customers choice 24 hours a day on both pre-paid and post-paid connections.
Business Hour rate: Experience cost effective tariffs during clients busiest time of the day. Make their calls at lower rates from 9am till 6 pm.
Closed User Group (CUG) rate: The Closed User Groups (CUG) feature gives clients lower call rates when they make calls within their defined company connections. Certain conditions apply for this feature.
International Roaming: Clients can get a connection designed with extended roaming service; Grameenphone has agreements with more than 115 countries worldwide so they are always available at their own number while traveling abroad. Take the privilege of availing the service with zero security deposit as a Business Solutions subscriber.
14 Call divert: This service allows them to automatically divert incoming calls to another mobile number whenever they are unable to receive a call, too busy, or simply unreachable.
Messaging Service: Grameenphone provide special messaging service to the business people. Their various messaging services allow clients, ways to communicate smarter, faster, more efficiently and more cost-effectively on the going concerns. They provide such services like SMS, Voice SMS, Voice Mail, MMS, Cell e-mail, SMS Plus, SMS Banking, SMS Information Service, Mobile profiling etc. To their business class clients.
Internet and data service: Grameenphone also provide internet and data exchanging services to it’s corporate clients. They can get Internet access on their mobile phone and also get mobility and access to the net everywhere they go. The major internet services of GP are as follows.
High Speed Data Service: Grameenphone’s high speed mobile coverage, powered by EDGE, lets the clients enjoy a series of services like e-mailing, downloading, and browsing. If they move out EDGE coverage the phone automatically switches to GPRS, ensuring connection without any interruption. Moreover, clients EDGE-enable phone functions as a wireless data modem when they connect it to any laptop.
Mobile data transfer: Clients can easily transfer data to share among their colleagues, access servers when moving in a remote area, and even connect to the Internet from their own PC by using GP’s mobile network.
Mobile Fax: It’s just like having client’s own traveling office! All they need is a computer notebook, their business solutions mobile phone, a cellular data card and a connector. they are ready to send faxes as well as retrieve it from any available fax machine.
Mobile Internet: With this service clients can access a number of mobile Internet sites such as yahoo mail, hotmail, google, msn, for news services, travel information, sports updates and much more.
15 Mobile E-mail: GP’s mobile e-mail is designed such that clients are never far from their business. Access their office e-mail, corporate address book, and view business appointments. Mobile email lets them use their mobile as they would their computer.
BlackBerry Service: Grameenphone's Business Solutions, the complete communications solution for business, introduces BlackBerry® services in Bangladesh for Grameenphone subscribers. BlackBerry® smartphones enable users to access the proven BlackBerry® wireless services with support for email, phone, internet, instant messaging, organizer and much more. Users can discover a larger life with BlackBerry® smartphones. It is much more than just work and email. It helps users connect with friends, family and others and gives life a much needed balance. This service simply provide the users the additional services of Mobile Email, Brows, Instant Messaging, GPRS Roaming.
International Roaming Service: International Roaming (IR) is a service that allows subscribers of one mobile network to use his/her own phone (number & handset) in foreign operators’ networks while traveling outside home country. It depends on Inter-operator agreement and handset compatibility.
The roaming services provided by GP can be described from two perspective. A person going outside Bangladesh or another person who is coming to Bangladesh can get two different types of services from GP.
Going outside Bangladesh:
Coverage in more than 320 operators' networks in 117 countries.
EDGE/GPRS Roaming Services (Email, Internet Browsing & Download, MMS)
No Use, No Pay - NO Monthly Access Fee.
‘Zero' Security Deposit for Corporate & Special Subscribers*
Industry Lowest Security Deposit for Individual Subscribers*
Free Ownership Transfer (if required for IR subscription)
Free Monthly Itemized Bill
IR Usage, Bill & Payment Information through SMS from home & abroad
IR Bill Payment through SMS - Anytime & Anywhere
16 IR Hotline accessible both from home (121) and abroad (+8801700100121)
Useful information through Push-Pull SMS
Direct Communication with each IR subscriber for individual queries and complaints
Access to 24/7 GP Health line Medical Consultation service number from abroad (+8801700100789) **
Coming to Bangladesh: Whether a person trip to Bangladesh is for business or for pleasure, he/she will appreciate the ease and convenience of using GrameenPhone International Roaming services. As we have mentioned earlier, being the market leader in mobile telecommunication & the prime International Roaming service provider in Bangladesh, GP has 325 GSM partner operators in 117 countries in 6 continents and 90 EDGE/GPRS partner operators in 46 countries (As of Oct 2007). Under GP international Roaming service package one can enjoy the following facilities.
He can enjoy widest Network Coverage & Best Quality Services
Can get EDGE/GPRS Roaming Services (Internet, Email, MMS, WAP etc.)
Can use GSM Roaming for Prepaid Usage
Local Direct Dial Service
Exclusive Hotline 121 & Dedicated Customer Management Team
Useful Information through Welcome SMS & Special Numbers Handset under “GP Nokia Campaign”: Grameenphone recently-launched Nokia enterprise solutions devices E66 & E71 which have been bundled with Grameenphone Business Solutions connections, where both prepaid and postpaid customers can enjoy a special bundled price and usage-based monthly benefits. This package works as a perfect business solution for executives and entrepreneurs on the move and trying to maintain a balance between life and work. This is also an attempt to staying close to customers by providing devices with the core service.
4.6.5 GP Village Phone:
17 This is a special facilitating Package provided combinely under Grameen Bank’s Micro Credit Program and Grameenphone. This package is designed to facilitate the calling businesses in the rural areas of Bangladesh. It is also an offer to the small investors to earn generate income from phone through subsidized tariff .Personal voice communication beyond hearing distance is simply not possible today from 90 per cent of the 68,000 villages of Bangladesh. The Village Phone (VP) program established by Grameen Telecom provides an opportunity for universal access: according to Grameen Telecom, a person may not own a telephone but he/she should have access to a telephone within a ten minute walk.
The Village Phone initiative was developed by combining the Grameen Bank’s expertise in village-based micro-enterprise and micro-credit with the latest digital wireless technology. Grameen Telecom (GTC) is a non-profit organization that forms part of the Grameen Bank family of organizations, and it focuses exclusively on the deployment of the Village Phone program in rural parts of Bangladesh. GTC buys airtime in bulk from GrameenPhone Ltd. (GP), a for-profit corporation holding a nation-wide license to operate and maintain a mobile cellular network throughout the country. Bulk airtime purchasing from GrameenPhone Ltd. enables GTC to pass on savings to the Village Phone (VP) operator. GTC owns 35% of the shares of GrameenPhone Ltd., and plans to have controlling interest in GrameenPhone Ltd. in the near future.
The Village Phone is a unique undertaking that provides modern digital wireless telecommunication services to some of the poorest people in the world. A Grameen Bank member (most often female) purchases a phone under the lease-financing program of the Bank and provides telephone service to people in her village. Each Village Phone operator is responsible for extending the services to customers for both incoming and outgoing calls, collecting call charges, remitting payments to Grameen Telecom, and ensuring proper maintenance of the telephone set. Repayment of the loan for the phone set is processed through the existing loan granting and collection procedures of the Grameen Bank. GTC prepares monthly bills for the airtime charges for each phone, and Grameen Bank managers at the community level collect monthly payments from operators, in person, at the village level.
She must have a very good record of repayment of Grameen Bank loans;
18 She should have a good business, preferably a village grocery store, and have the spare time to function as the VP operator. Initially, this may be a side business and eventually switch over to telecom business on a full-time basis after services and revenue justify a full-time commitment. She should be literate or at least she must have children who can read and write. Her residence should be near the centre of the village.
4.6.6 GP Public Phone:
This package is designed to facilitate the prepaid calling business in the lower income segment in the urban areas of Bangladesh. The person those who don’t have cell phones this package is for those to give them a access to GP’s telecommunication service. This package is also to give the prepaid users the facility of recharging by scratch card or flexi load through the authorized retail outlets of Grameenphone through out the country. For example a person is taking any prepaid service from GP .To continuously take this service from GP he/she needs to purchase some additional services such as scratch card of flexi load etc. And to provide this services to the customers or the prepaid service users Grameenphone needs to appoint their additional service providers (or we can say authorized retailers) throughout the country so that their prepaid (to some extent postpaid also) service users can easily purchase the additional services from them. The Interested small or medium term investor can earn profit from this package through subsidized tariff.
The criteria managers use to select the dealers is mainly as follows. The investor must have a certain or required amount of capital. The investor should have a good business experience or background, professional or business related skills and have the spare time to function as the dealer or operator. Initially, this may be a side business and eventually switch over to telecom business on a full-time basis after services and revenue justify a full-time commitment They should be literate enough to conduct the business functions. The investor must have to place the valid and true documents while applying for dealership.
19 After analyzing all of the above factors the managers give dealership to the interested investors. The investors can do this business with the necessary brand or promotional elements (like poster, banner, leaflet etc) of GP. The authority of GP will charge a commission from their business.
4.6.7 Other Value Added Services:
SMS Based Alert services : Voice Based Services:
. Miss Call Alert . Namaj Timing . Namaj Time Alert . News Update . Cricket update alert . Voice SMS
Infotainment service: Innovative services:
. Welcome Tune . Cell Bazar (The mobile store) . Ring Tone . 24 Hour Health line . Downloading Features . Bill Payment Service
Message Services: Customer Care Related Services:
. Text Message . Solving Problems of the customers . MMS (Multi Media Messaging) through phone call . Other Business SMS . Providing all the services through retail center
4.6.8 SMS Based Alert services :
1. Miss Call Alert: Subscribers can be notified by SMS of the last 3 calls they had missed when their phone was unreachable. The alert notifies registered subscribers of the service about the calls when they were unreachable due to any of the following reasons:
Handset switched off
Out of network or coverage area
No charge in battery of mobile phone
20 When subscribers switch on their phones, they will receive notification of last 3 calls via SMS. To subscribe, one has to send to 6222. To unsubscribe, one has to send to 6222.
2. Namaj Time Alert: To get daily namaz timings through push-pull SMS customers can type "namaz" and send it to 2200. In return they will get the namaz timings for that day and will alert the user at the due time with an sms.
3. Cricket Update Alert: Users can get cricket updates in their GP mobile phone by subscribing to cricket alert service. To get the alert service, they need to type "cric on" and send it to 2002. To unsubscribe from the service, type "cric off" and send it to 2002. They will get SMS alerts for fall of every wicket, milestones (like player or team 50s and 100s) and match summary. This service is only for ODIs.
4.6.9 Voice Based Services:
1. Namaj Timing: GP provides daily namaz timings through IVR. Users need to dial 2200 to listen to daily namaz timings. The previous service was alert but that one is when the users want to know the schedule of Namaj they can use this service.
2. News Update: GP also provides news and sports update. Users have to dial 2000 to listen to latest news (provided by bdnews24.com) and 2002 to get Sports Update (International Cricket Matches and English Premier League updates).
3. Voice SMS: If the user wants to leave a special message, like a birthday wish or marriage anniversary greeting for someone, Grameenphone's Voice SMS service can help him .Or when he would like to send a message but the receiver may not be comfortable with using SMS, then too, Grameenphone's Voice SMS service can help the users. When the user cannot reach someone but would like to leave a message, Grameenphone's Voice SMS service can help him there too.
4.6.10 Infotainment service:
21 1. Welcome Tune: Suppose the users is busy in any purpose. At that time some one calling him. The user is so busy that unable to receive the call and want to make the caller wait for a while. To do so he can set a special tune to make the caller wait. Grameenphone is right now providing this special service from which the customers can select their tunes according to their own choice. Users can let their friends listen to their favorite tunes every time they call. Users can also record their own voice and play it for their friends. They either set one common tune for all or customize a tune for individual callers.
2. Ring Tone: Ring tone is actually an alert to the user when some calls him or her. Previously it was just a function of the hand set. But now a days with the emerge of technology and due to different perception, different choices, different cultural norms, different impact of reference group among the customers, ring tone is not just a tone. For this they have go to wap.gpworld.com from their WAP enabled phone sets to download Poly Tones, True Tones, MP3 Tones of hit Bangla, Hindi & English songs.
3. Downloading Features: GP World enables GP subscribers to get exciting mobile contents like ring tones, wallpapers, themes, animations to customize their handsets & also enable them to play fun mobile games. GP users can download these contents to their EDGE enabled handsets from GPWorld (http://wap.gpworld.com/).
4.6.11 Innovative services:
1. Cell Bazar (The mobile store): Cellbazaar is a service from Grameenphone that allows users to buy or sell anything over their mobile phone. If they want to sell something, they have to post the information on Cell Bazaar through Grameenphone, and buyers will contact them. If users are looking for something to buy, or a service (e.g., tutor), they can look for it on Cell Bazaar and contact the seller directly. When buyers sees an item they like, they can call the seller, get additional information, and meet the seller to complete the transaction. CellBazaar is a platform for buyers and sellers to find each other.
2. 24 Hour Health line: Accidents or unexpected incidents can occur any time in our daily life. Suppose a heart patient suddenly became seriously ill and the relatives could not understand
22 what should be done and there is no other source from where they can get Medicare suggestions. At this moment they can take help from Grameenphone by just a call. 3. Bill Payment Service: Grameenphone's BillPay service brings a hassle free and secured solution to pay Titas Gas and PDB electricity bills (PDB bills applicable for Chittagong and Cox's Bazaar areas only).
4.6.12 Message Services:
1. Text Message: Users can send any text based short message or documents to one another. To do so they have to go to handset message option, write new message, enter the recipient mobile number and press send. One can send text message up to 160 characters to any mobile number.
2. MMS (Multi Media Messaging): Multimedia Messaging Service (MMS) is an exciting way for the users to share special moments such as birthdays, weddings and holiday pictures with their loved ones. They can even send pictures and video clips to e-mail addresses and can customize their messages with texts, pictures, animations, music, video clips (Up to 100 KB). They can also record special moments and save it for the future - in their phone, e-mail inbox or even mail it to another user.
3. Other SMS Related Services: Users can get information on updates of taheir bills and telephone numbers to call ambulances, hospitals, blood banks, police stations etc. To do so they have to type the following key word and send it to 2000 from message option from their handset. They have to type ‘ambulance' for Ambulance service, type ‘police' for Police service.
4.6.13 Customer Care Related Services:
Customers may have some personal queries or they may face problem while providing the services to the consumers. To answer all the queries and to solve all types of questions Grameenphone organized a special service. They established their own retail centers (including call centers and customer care related centers) throughout the country. Form marketing point of view we can say, it is
23 an attempt to provide after sales service. Their customer managers are people just like customers near and dear ones.
Customer Service Hotline: Today in a fast changing world, the role of the mobile phone is increasing day by day; so are the demands of our subscribers. Customer demands are no longer confined to making or receiving voice calls only; rather with new value added services being introduced, subscribers are trying something new everyday. Marketers are now trying to fulfill that need of the customers. Trained customer service agents of GP are within easy reach; ready with personalized support related to all of their products and services. Their trained call center professionals are available round the clock, 7 days a week, 365 days a year. By simply dialing 121/ 121 15 (to talk directly with our Customer Service Agent) users can find the answers to any query in the cheapest way. GP’s customer managers are always at hand to listen to any kind of complaints regarding our products and services . They provide information related to the different products and services offered by GP, to help users make the purchase decision that is most suitable to their communication needs.
Customer Service point: Grameenphone established more than 600 Grameenphone customer service desks in 61 districts all over the country to make customer service available to the subscriber. In these, desks Customer Managers provide service from Sunday to Thursday from 10am to 6pm. This is an attempt to make their entire products and services available throughput the country. It is a countrywide and full prove plan because from these service points the customers can get any of their probable products and service solutions.
Complaint Management: While providing the call center and care related services customers may remain dissatisfied with any of the products or services of the customers. They may have some complains of request. To overcome all their complains and to run the services smoothly, they introduced a special service called Complaint Management. Complaint Management is just to handling queries, complain, requests on mails, faxes and letters from customers.
4.7 Pricing:
24 Due to the functional and theoretical differences between the products and services the pricing strategy for service usually bit differs than the products. As production cost is not that much involved rather service fees are more important here, the value based and to some extant cost plus pricing is widely used for services. As a telecommunication service provider the pricing strategy of Grameenphone is described bellow.
4.7.1 GP Smile Prepaid:
Start-up Start-up Benefit Product price
Inclusive of BDT 100 talktime.
Tk 20 Preloaded Airtime + Tk 40 Bonus Airtime for any amount recharge within 31st day Smile PSTN of activation – with 15 days validity + BDT 590 Tk 40 Bonus Airtime for any amount recharge within 61st day of activation – with 15 days validity.
i.e. Total BDT 100.
SMILE subscribers will enjoy reduced tariff of only Tk 1.50/min (7am-12am ) for all GP to GP calls and Tk 2/min to any other operator (24 hours). A call to a BTCL number will cost Tk. 2. SMS to any GP number and to other local operator's number is Tk.1 and international operators is Tk. 2. Under a promotional offer smile subscribers now can talk to any GP number only at Tk. 0.25/min from 12 am to 7 am in the morning. 15% VAT will be applicable on all tariffs. SMILE customers will also enjoy great Friends & Family rates through which they can talk at only Tk 0.25 per minute and SMS at only Tk 1 to 3 Friends & Family number.
SMILE customers will enjoy recharge facility by scratch card or flexi load with recharging facility of tk 10 to tk 5000. They can also transfer their balances ranging from Tk. 50 to Tk. 100 balance to any other SMILE or djuice subscriber. The balance gives validity of three (3) days. The denomination for the recharges are as follows. 25 Promotional validities in Flexi Load pre-paid recharges –
Recharge Denomination New Validity
Tk.10 – Tk.299 30 days (Both incoming & outgoing) Tk.300 – Tk.5,000 365 days (Both incoming & outgoing)
Promotional validities in Scratch Card recharges –
Scratch Card Denomination New Validity
Tk.50 30 days (Both incoming & outgoing) Tk.300 365 days (Both incoming & outgoing) Tk.600 365 days (Both incoming & outgoing)
4.7.2 GP Explore Postpaid: xplore Postpaid is available with Mobile to Mobile with BTCL connectivity & ISD. BTCL incoming is absolutely free in xplore.
Connection type Current Price xplore Postpaid (M2M, BTCL, NWD, ISD) Tk 800
All new xplore subscribers will now get EDGE P3 (12am-8am) and MCA (Missed Call Alert) subscription free for the fist 3 months, along with 100 SMS free of charge over the same period. The tariff rate for the xplore package is as follows.
Rang e Any Mobile F&F BTCL (local/NWD) SMS Charge
26 24 Tk.1.30/min Hour F&F: Tk.0.50
Incoming: Free GP and other local 4 F&F operators: Tk.1 Tk.0.25/min Outgoing: Tk. 1.30/min International: Tk.2.00
Line Rent: Tk.50/month (This fee too will be waived if the subscribers' monthly airtime usage exceeds BDT 450). BTCL Incoming is absolutely free for Xplore. Users can enjoy ,1 sec pulse from 1st minute onwards for all numbers except F&F, 60 sec pulse from 1st minute onwards for F&F ,NWD calls: BTCL's Peak (8am - 10pm) & Off-peak (10pm - 8am) rate will be applicable for BTCL charge ,All figures are excluding VAT. 15% VAT will be applicable.
Flexi Load for post paid: Users don't need to go to banks and stand in long queue to pay their postpaid bill. They can pay bill through more than 15000 FlexiLoad Retailer all over the country. Just go to your nearest FlexiLoad and pay any amount ranging from Tk 50 to Tk 50,000. The denomination for recharge will as same as the prepid.
4.7.3 Djuice:
Start-up Start-up Benefit Product price
Djuice BDT 490 Inclusive of BDT 60 talk time.
BDT 20 Preloaded Airtime + BDT 20 Bonus Airtime for any amount recharge within 31st day of activation – with 15 days validity + Tk 20 Bonus Airtime for any amount recharge within 61st day of activation – with 15 days validity.
27 i.e. Total BDT 60.
The special or distinctive offer of Djuice is it’s subscribers can enjoy a reduces tariff of Tk 0.75/min from 7 am to night 12 am which is applicable for Djuice to Djuice connection. They can also enjoy Tk 0.25/ min from night 12 am to morning 7 am and that is applicable for Djuice to Djuice or Djuice to any GP number. They can also have SMS service at the rate of 0.5/sms. They can also use two FnF numbers for their special purposes. The charge for FnF is Tk0.25/min for any two selected desired numbers. The tariff plan of Djuice with start up price is given bellow.
One important recent modification is to note here that previously djuice service was without PSTN and ISD. But now the PSTN and ISD services is also added with Djuice. The recharging and credit transferring facility, designed and priced for djuice, is as same as the Smile Prepaid package of GP.
4.7.4 GP Business Solutions:
Call services : Among the call services except international roaming, all other services (FnF, business hour rate, CUG) are charged based on the usage of the services by the corporate clients, size of the firm, type of the business and so on. But they have a specific offer for the business users. The tariff plan for the business users are given below.
TARIFE/MIN (TAKA) Business Hour Non Business Hour Type of call 09:00am-05:59 pm 06:00pm-08:59am GP – GP 1.00 1.50 GP – Other 1.20 1.50 FNF 2 GP numbers and 1 other subscribers number ALL INCOMING Free Free (Including BTTB) 28 GPRS/EDGE Same as Post-Paid (without package 4)
International roaming: charges for International Roaming sequentially given bellow.
Going outside Bangladesh: To get this roaming service the user at first has to open a security deposit. There are two options for that type of security deposits. Those are …..
*Option 1: BDT 0.00 (both Bangladeshi & Foreign Nationals) + Mandatory Auto Debit
*Option 2: USD equivalent to BDT 20,000 (for Bangladeshi Nationals) / BDT 50,000 (for Foreign Nationals) + Optional Auto Debit
GP currently accepts any locally or internationally issued International Debit or Credit Card (Subject to change anytime) for International Roaming related transactions (Security Deposit / Bill / Advance Payment etc.). The Credit Limit for using GP International Roaming service will be:
= The International Roaming Security Deposit + BDT 1000
When subscribers accumulated IR usage (Billed Amount + Unbilled Usage) gets near to their Credit Limit, they will be notified through SMS and will be requested for bill payment. If their accumulated IR usage
(Billed Amount + Unbilled Usage) exceeds the Credit Limit, their IR service will be barred automatically
Coming to Bangladesh: An outsider coming to Bangladesh taking the International Roaming services of GP, will be charged in the following way.
29 Call Type Charge Per Minute Pulse Incoming Local Call BDT 25 60/60 Incoming International Call BDT 25 60/60 Outgoing Local Call (Mobile to Mobile) BDT 25 60/15 Outgoing Local Call (Area) BDT 25 + Land Part Existing60/15 Tariff
Outgoing NWD (Nation Wide Dialing)BDT 25 + Land Part Existing60/15 Call Tariff
Outgoing ISD (Inter State Dialing) CallBDT 25 + Land Part Existing60/15 Tariff Hotline (121, 2007) BDT 4 60/60 SMS Outgoing BDT10 NA SMS Incoming Free NA EDGE/GPRS (Uplink-Downlink) BDT 4 / 10 KB NA For receiving International calls, Call forwarding charge (from your home country to Bangladesh) is not included here.
Tariff shown here is exclusive of any tax or VAT
Zones Present Tariff Local Calls (Multi Exchange Areas like Divisional City) 1.7 BDT/Call* e.g: Dhaka City NWD Within District e.g: Calling to thana under same 1.5 district BDT/Minute** NWD Calls to Districts between 0-100 Miles
NWD Calls to Districts 100+ Miles Distant Pulse: 30/30
*Pulse: 30 sec (From 1st minute) *No peak/off peak
Messaging services: Among all the messaging services, the charges of SMS plus, SMS banking, SMS information services will come under the SMS based services and voice mail charges will come under the voice sms. Here the charges described below.
Tariff Plan for text messaging: 30 Product djuice On-Net Off-Net International SMS
Smile BDT 1.50 BDT 1.50 BDT 2.00 BDT 2.00 Smile PSTN BDT 1.50 BDT 1.50 BDT 2.00 BDT 2.00 Post paid BDT 1.50 BDT 1.50 BDT 2.00 BDT 2.00 djuice BDT 0.50 BDT 1.00 BDT 1.50 BDT 2.00
Tariff Plan for Multimedia Messaging Service (MMS):
GP to GP 3 tk GP to E-mail 3 tk GP to International(Selected Operators) 15 tk + VAT GP to Port (any competition) 5 tk
Tariff Plan for voice messaging:
The charge to send a Voice SMS is BDT 1.5/min + VAT (users can send a message up to 2 minutes long). Just dialing *0171XXXXXXX.
Users can retrieve a new message once - for free. Just dialing *0*
Users can retrieve old messages by dialing *1*. Charge is BDT 1/min + VAT.
Users can also reply or forward a message (BDT 1.5/min + VAT) Internet services: To get internet access anytime wherever the user are and to provide a great web surfing facility Grameenphone brings the EDGE (Enhanced Data Rates for Global Evolution). With this technology the subscribers can get access to internet even from their hand set. It is about 8 times faster than GPRS.GP is right now providing this services with four types of packages. Those are Package 1 (P1), Package 2 (P2), Package 3 (P3) and Package 4 (P4). The tariff structure for This Package is given below.
P1 P2 P3 P4 Subscribers All All Postpaid Prepaid Tariff None BDT 1000/Month BDT 300/Month BDT 60*/Day Browsing Charge BDT 0.02/KB Nil Nil Nil Content As per content31 As per content As per content As per content Download Handset under “GP Nokia Campaign”: The tariff plan for the Handset of the campaign for the existing Business Solution subscribers is as follows.
Model Nokia Offered GP offered Discount Exclusively for Market Price (BDT) Corporate Price BS (BDT) (BDT)
E71 31,500 29,999 1500
E66 32,000 30,499 1500
Plan for the new Business Solution subscribers:
Model Nokia Offered GP offered Discount Exclusively for Market Price (BDT) Corporate Price BS (BDT) (BDT) E71 31,500 29,999 1500
E66 32,000 30,499 1500
4.7.5 GP Village Phone:
We have stated earlier that Village Phone is a combine effort of Grameen Bank and Grameen Phone. This package is mainly for those small type investors in the rural areas who run their small businesses by taking short loans under the micro credit program of Grameen Bank. In this package the investor at first have to purchase an hand set by taking a required amount of loan under micro credit program of GB. With the phone set they can purchase a sim-card from the GP authority at a rate of BDT 100. After getting the line they can start their business according to the following tariff plan.
Outgoing Call Charges Offer Start-up Price Tk. 500 Tariff Tk. 1.00 (Ex. Vat) Pulse 1 Sec (Flat) 32 GP to BTCL Tk. 1.00 (Ex. Vat) GP to ISD ISD rate by BTTB board Economy ISD Calling Economy ISD rate Bonus Modality:s10% bonus on per day usage of every BDT 50, will Modality: be applicable after usage of BDT 500 per month.
Incoming Call Charges Mobile to Mobile Free BTTB and ISD Free
Important notes 1. BTTB and ISD - Peak (8AM – 10PM) and Off-Peak (10PM – 8AM). 2. 10% Service Charge and 15% VAT applicable.
4.7.6 GP Public Phone:
The pricing policy of this service is bit similar to Village phone. In this service the investors (the retailers) first have to purchase a sim-card from the dealers at rate of BDT 600. After opening their own retail outlet they can provide this service by recharging any amount they want. For every Tk 1000 recharge they will get Tk 27. For every scratch card they get the following discounts as their profit.
Scratch Card Denomination Discount for the retailers
Tk.50 Tk 0.70
Tk.300 Tk 7.00
Tk.600 Tk 15.00
Apart from the recharge and scratch card facility the investors will get the following facilities.
Outgoing Call Charges Offer
33 Products (Postpaid + Prepaid) Start-up Price Tk. 600 Tariff Tk. 1.00 (Ex. Vat) Pulse 1 Sec (Flat) GP to BTCL Tk. 1.00 (Ex. Vat) GP to ISD ISD rate by BTTB board Economy ISD Calling Economy ISD rate Monthly Discount/Bonus 10% bonus on daily usage
Incoming Call Charges Mobile to Mobile Free BTTB and ISD Free
Important notes 1. Start up price for GPPP is TK.600. There is no free offer with the GPPP startup. 2. BTTB and ISD - Peak (8AM – 10PM) and Off-Peak (10PM – 8AM). 3. BTTB pulse 30 sec / min. 4. 15 % vat applicable. 5. All Tariffs are subject to change.
4.8 Promotional activities of GP:
As I have stated earlier that Promotion is the activities that the firm needs to undertake to inform the customers about their product value. Promotion includes advertising, the sales force, public relation, packaging and any other signal the firm provides about itself and its products. To promote their products the companies usually take help of promotion mix. This promotion mix is a set of tools that enables the firm to make their target customers aware of their products. These promotional tools are as follows.
1. Advertising 2. Direct Marketing 3. Interactive Marketing 4. Sales Promotion 5. Publicity/Public Relation 6. Personal selling
34 Among all of the promotional tools stated above except personal selling, GP uses almost all of those promotional tools. Depending on the service offerings, service attributes GP used different promotional tools. The promotional tools used by GP are sequentially described bellow.
4.8.1 Advertising: Advertising refers to the activities that enable the customers to become aware of the product and at a time enable the firms to make the product available to its target customers with the help of some effective media. The advertising tools used by GP can be categorized in to two categories. Those are print media advertising and electronic media advertising.
4.8.1.1 Print Media Advertising: Print media advertising refers to those attempts of the firm, when the firm use some printed materials to provide the information of their product offerings. It is a paid form of non-personal communication. To stay close to the customers GP continuously give printed advertisements in the most popular dailies, monthlies, weeklies and fortnightlies of our country. The other two special types of print media advertisements are described below.
A. Place advertisements: It is one type of advertisement in which the firms provide their printed materials in some selected place to capture the attention of the people. Grameenphone use that type of advertisements by providing printed information in the bill boards, specialized tools in the speed breakers and road deviders with umbrella of the traffic police. Printed advertisements in the vehicles are also one type of printed advertisements.
Bill Board of GP
B. Point of Purchase Advertisement: It is one type of advertisement in which the firm use some specialized printed materials (including information) in purchase place to enable the
35 customers to make better purchase decision. We can say it is an indirect enforcement to make a purchase. GP use that type of advertisements by providing printed stickers, danglers, short posters in the retail outlets.
A sample of Printed materials of GP used in the retail outlets
4.8.1.2 Electronic Media Advertising: Electronic media advertising refers to those attempts of the firm, when the firm uses some electronic mediums to provide the information of their product offerings. It is also a paid form of non personal communication. To provide greater convenient information to customer GP shows TV commercials in the most popular TV channels and sound commercials in the popular radio stations. GP also sponsored drama cereals and talk shows in the popular TV channels. Their electronic information in their official website is also one kind of electronic media advertising.
A TV commercial of GP A Talk Show sponsored by GP
4.8.2 Direct Marketing:
36 This is one type of promotional tool in which the firm directly communicates with the customers to inform about their product offerings. GP uses this promotional tool only for the existing customers to inform them about the new offerings. Suppose GP is going to offer a reduced tariff or new talk time package of sms package. Then to inform this issue to the existing customers they will send sms to each customers like this “Dear subscriber, type yes and send to 3030 to get 250 sms free. Conditions appliey”. This one type of Direct Marketing.
Dear subscriber, type yes and send to 3030 An example of Direct to get 250 sms free. marketing adopted Conditions appliey by GP.
4.8.3 Interactive Marketing: This is one type of promotional tool in which the firm communicates with the customers through some interactive media (like internet). To ensure an interactive communications with the customers GP designed their official website in such a way that, the customer can get any product related information. More over with their internet package the customers can always get access to GP even from their handset.
4.8.4 Sales Promotion: It is one type of promotional tool in which the firms provide the customers extra value to get an immediate response from them and immediate impact in the sales volume. Product oriented firms use this tool to provide extra amount of products or discounts ( like 20% extra, buy 1 get 1 free etc). GP also use this tools to provide extra value to the customers (like 250 sns free, reduced tariff for the next month etc). Usually GP use that types of promotions for a specific period or season like Ramadan, Eid, Pahela Boishakh etc.
37 An example of Sales promotion offered by GP.
4.8.5 Publicity/ Public Relation: This is one type of tool where the firm use paid or non paid form of communication to enhance the brand image. Here the public relation is a paid form of communication and publicity is the non paid one. Suppose if GP sponsored any sports event it is a paid form of promotion but if in the next day any daily news paper wrote a collum regarding the sponsored event of GP then it will be non paid form of promotion. GP conducts that type of paid form of promotions by sponsoring sports events and culture oriented events. GP also provided relief for the flood effected and sidr affected victims.
Relief Program organized by GP.
Chapter 5: Accounting and Finance:
38 5.1Financial Review: Amidst global recession and intense competition in the market, Grameenphone has had a good year in terms of subscription growth and its financial consolidation. Competitors are engaged into price war and with new entrants coming into the market, there is a possibility of exhilarating competition ahead. Regulatory authorities have played a pivotal role in business environment with new directives and guidelines, such as reduced interconnect prices, guidelines for infrastructure sharing and likewise. Grameenphone continued with its product innovation and offering wide array of services, namely introducing GP branded handsets and edge modems bringing alternate revenue streams. Side by side, Grameenphone embraced cost optimization initiatives through operational excellence program to maximize profit. In addition, Grameenphone opted for cost-efficient network solutions through swapping of assets with Huawei equipments. The most colossal episode for Grameenphone was its listing in the country’s two bourses in Nov’09, which entitled Grameenphone to avail a reduced corporate tax rate.
Subscription:
Subscriber base crossed 23 million landmark in 2009. During the year, subscription base increased by 11% with 2.27 million additions. Internet subscriptions reached 4.3 million compared to 3.7 million of 2008. GP’s subscriber market share stood at 44.4%.
Revenue: Revenue increased by 6.4% (BDT 3.9 billion) mainly due to growth in traffic revenue driven by subscription growth and new revenue streams from sale of GP branded handsets and edge modems. The growth in revenue was partially offset by lower interconnect revenues resulted from reduced interconnect rates set by the regulator. Increased data revenue from data subscriptions also contributed to the revenue growth.
Operating Expenditure:
39 Total operating expenditure in 2009 decreased by 9% (BDT 2.8 billion) from 2008 mainly due to lower cost of network operation (mainly in interconnection and BTS maintenance) and lower subscription acquisition costs. A total savings of BDT 3.5 billion has been achieved through the operational excellence initiatives during the year.
Net Profit After Taxes:
Net profit before tax increased by BDT 7 billion for the year 2009 compared to 2008. The surge was due to higher revenue and lower operating expenses. Income tax expense was lower due to one-time effect for reduced tax rate. However, it was partially offset by higher tax provision due to higher profit. In addition, 2008 net profit after tax was lower due to one-time regulatory payment on account of government compensation.
Total Assets: Grameenphone’s current asset base increased by BDT 7.6 billion mainly in cash and bank balance resulting from higher net cash from operations and proceeds from IPO. However, non-current asset base decreased by BDT 6.8 billion due to higher depreciation and amortization expenses than fresh investments. Capital expenditure during 2009 was BDT 10.4 billion compared to BDT 27.4 billion of 2008. Total Liabilities: Total liabilities decreased during the year mainly due to early settlement of entire bond obligation, repayment of short-term borrowings, reduced deferred tax liabilities due to change in corporate tax rate and allocation of shares to PPO investors from advance against IPO.inancial Rev iew 5.3Business Performance:
40 Here is the chart of business performance of GP at a glance:
Revenue: 65.3 Bn
Earnings per 6% Gross Profit: share: 32.2 Bn BDT 12.08
12% 391%
NAV per share: Operating BDT 37.14 Grameen Profit: 20.5 Bn 64% Phone 34%
Net operating Profit Before cash flow per Tax: 18.6 Bn share: BDT 24.77 61% 22% Net Profit After Tax: 15.0 Bn
402%
Chapter 6: Business Environment:
41 “A shared responsibility, for a common future” While they maintain their business focus, taking the nation forward remains our top priority. Thus their relationship with Bangladesh is built on a partnership, which strives to achieve common economic and social goals.
Their Social investments are consolidated in three main focus areas, namely, Healthcare, Education and Environment.
Health: Almost half of the country’s population lives below the poverty line and are deprived from basic primary healthcare. In partnership with Pathfinder International and USAID, Grameenphone has been supporting the “Safe Motherhood and Infant Care” program since May 2007. Under the program, free comprehensive primary healthcare services are provided to economically disadvantage pregnant mothers and infants through over 300 Smiling Sun clinics located in 61 districts around the country. So far 1,333,314 services have been provided to the economically disadvantaged mothers and infants under this program. In 2009, two clinic-on-wheels and five ambulances were handed over to different NGOs of Smiling Sun Network, to increase the accessibility of maternal and infant healthcare services to the hard-to-reacheconomically disadvantaged population. Grameenphone, jointly with Sight Savers International, has been organizing free Eye Camps to ensure eye-care services since 2007. In total, 21 such free eye-camps have been organized throughout the country and a total of 29,270 patients were given free eye care support, among them 3,887 patients were administered Intra Ocular lens or cataract surgeries.
Education: The main goal of Grameenphone’s CSR Eductaion initiative is to provide access to education and information. 42 Grameen Shikhkha:
Grameenphone provides scholarship to meritorious but underprivileged students through a scholarship fund at different academic levels, in collaboration with Grameen Shikhkha, an organization of Grameen Bank Family.
Alokdeep, Non-formal School cum cyclone shelter:
Grameenphone, as part of its rehabilitation plans in the SIDR affected areas, provided financial assistance to build education center-cum-cyclone shelters in the southern belt of the country. Four such non-formal primary school-cum-cyclone shelters were planned, of which two are already operational. The new cyclone shelters will be used as primary school throughout the year to provide non-formal primary education to underprivileged children of the locality.
Information Boat:
Grameenphone, in partnership with CARE Bangladesh, started the “Information Boat” project. Boats are also equipped with digital contents, such as livelihood and agricultural information, suited for the specific areas served by the designated boats. A typical information Boat is equipped with computers, Internet, photocopies, fax machines, printers, webcams and scanners. So far, four such Information Boats have been launched in the northeast region.
43 Environment:
Our Environmental campaign titled “Stay Green, Stay Close,” was launched in June 2009 with an objective to support a healthier environment through innovative environmental activations and initiatives, as well as increasing awareness among different stakeholder groups. As part of this program, over 21,000 free saplings were distributed across the country.
Other Initiatives: Sponsoring Special Olympics Bangladesh:
Grameenphone became the sole sponsor of Special Olympics Bangladesh in 2007 when it provided necessary support and training for the athletes to participate in the Special Olympics Games 2007 in Beijing, China. The team won 71 medals in different categories. In 2008-09, the company supported and organized regional talent hunts across the country. A total of 94 (64 male and 30 female) intellectually challenged athletes were selected from four regional talent hunt programs. These 44 selected athletes are to be trained and groomed for the Special Olympics World Summer Games 2011 in Athens, Greece.
Emergency Relief Works: A total of 14,500 blankets were distributed in different regions of the country during the cold wave in December. Grameenphone employees donated warm clothes and actively participated in the distribution of relief materials. After the devastating cyclone AILA hit the country, Grameenphone came forward to help the victims with basic food items, healthcare service through medical teams and providing temporary shelters made with GP’s used billboard wrappers.
Chapter 7: International Business Grameenphone is associated with TMC, a company organized under the laws of the Kingdom of Norway, seeks to develop and invest in telecommunications solutions through direct and indirect ownership of companies and to enter into national and international alliances relating to telecommunications. It is a subsidiary of Telenor Mobile Holdings AS and an affiliate of Telenor. Telenor AS is the leading Telecommunications Company of Norway listed on the Oslo Stock Exchange. It owns 55.80% shares of Grameenphone Ltd. Telenor's strong international expansion in recent years has been based on leading-edge expertise, acquired in the Norwegian and Nordic markets, which are among the most highly developed technology markets in the world. It has substantial International operations in mobile telephony, satellite operations and pay Television services. In addition to Norway and Bangladesh, Telenor owns mobile telephony companies in Sweden, Denmark, Hungary, Russia, Ukraine, Serbia, Montenegro, Thailand, Malaysia, Pakistan and India with more than 174 million mobile mobile subscriptions worldwide as of December 31, 2009. Telenor uses the expertise it has gained in its home and international markets for the development of emerging markets like Bangladesh. As part of the conversion of Grameenphone from a private limited to a public limited company, Telenor Mobile Communications AS transferred 10 shares each on May 31, 2007 to its three (3) affiliate organizations namely Nye Telenor Mobile Communications II AS, Norway; Telenor Asia Pte. Ltd., Singapore; and Nye Telenor Mobile Communications III As, Norway. Telenor provides telecommunication facilities internationally in 117 countries.
CHAPTER-8 (Conclusion)
45 The purpose of this paper has been to analyze the market expansion activities of Grameenphone. GP is a very big telecommunication company. Therefore, its very difficult for us to analyze its each and every strategy precisely in this small study.
There can be various ways through which a business organization can achieve success in the market, After scanning its external & internal environment and considering all alternatives, we have tried our level best to sort out the best way as per our thinking ability for GP to run ahead.
But finally we can say this much that it has a large potential both in the short and long run due to its sound distinctive competencies .
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