PRODUCT, PRICE & PROMOTIONThree ‘P’s of Banglalink

Prepared for

Prof. Dr. Pradanendu Bikash Chakma

EM520: Marketing Management

Prepared By

Md. Jubair Bin Kibria - 3-09-17-022

Table of Content

INTRODUCTION----------------------------------------------------------------------------------------------------------------------------------3

PRODUCT AND SERVICES---------------------------------------------------------------------------------------------------------------------4

PRE-PAID PRODUCTS:---------------------------------------------------------------------------------------------------------------------------4Ladies, first!--------------------------------------------------------------------------------------------------------------------------------4Desh-----------------------------------------------------------------------------------------------------------------------------------------7

A new desh connection will cost:----------------------------------------------------------------------------------------------------------------8For existing ladies first/bonus prepaid customers-------------------------------------------------------------------------------------------8Desh Rang Tariff:-------------------------------------------------------------------------------------------------------------------------------------8Calls to BTCL:------------------------------------------------------------------------------------------------------------------------------------------8

POST-PAID PRODUCTS--------------------------------------------------------------------------------------------------------------------------9Banglalink enterprise-your link to growth------------------------------------------------------------------------------------------9

Special benefits of Banglalink Enterprise:------------------------------------------------------------------------------------------------------9Enterprise personal packages---------------------------------------------------------------------------------------------------------------------9Benefits of personal packages:-------------------------------------------------------------------------------------------------------------------9

Personal package 1--------------------------------------------------------------------------------------------------------------------10Personal package 2--------------------------------------------------------------------------------------------------------------------10

Personal call & control----------------------------------------------------------------------------------------------------------------------------10Call charges:------------------------------------------------------------------------------------------------------------------------------------------11Personal package-----------------------------------------------------------------------------------------------------------------------------------12

PRICING STRATEGIES-------------------------------------------------------------------------------------------------------------------------13

COST BASED PRICING--------------------------------------------------------------------------------------------------------------------------13Breakeven Analysis---------------------------------------------------------------------------------------------------------------------13

ALTERNATIVE PRICING STRATEGIES-----------------------------------------------------------------------------------------------------------13Skimming Pricing-----------------------------------------------------------------------------------------------------------------------13Penetration Pricing---------------------------------------------------------------------------------------------------------------------14Everyday Low Pricing and Discount Pricing--------------------------------------------------------------------------------------14Competitive Pricing---------------------------------------------------------------------------------------------------------------------14

PRICE-QUALITY RELATIONSHIPS---------------------------------------------------------------------------------------------------------------14Odd pricing-------------------------------------------------------------------------------------------------------------------------------15

PROMOTION------------------------------------------------------------------------------------------------------------------------------------15

ADVERTISING MEDIA---------------------------------------------------------------------------------------------------------------------------15PRINT MEDIA-----------------------------------------------------------------------------------------------------------------------------------15TELEVISION-------------------------------------------------------------------------------------------------------------------------------------15BILLBOARDS------------------------------------------------------------------------------------------------------------------------------------15TRANSIT ADVERTISING-------------------------------------------------------------------------------------------------------------------------15HEALTH LINK-----------------------------------------------------------------------------------------------------------------------------------16OTHER PROMOTIONAL ACTIVITIES------------------------------------------------------------------------------------------------------------16

CONCLUSION-----------------------------------------------------------------------------------------------------------------------------------16

IntroductionBanglalink is the second largest cellular service provider in Bangladesh. As of February, 2008, Banglalink has a subscriber base of 7.88 million. It is a wholly owned subsidiary of Orascom Telecom. Banglalink had 1.03 million connections until December, 2005. The number of Banglalink users increased by more than 253 per cent and stood at 3.64 million at the end of 2006 and ended 2007 at 7.1 million subscribers’ base, making it one of the fastest growing operators in the world.

Bangladesh has the lowest telephone penetration rates in the world and even in South Asia. According to a report by the International Telecommunication union (ITU), only 1.56 among 100 people of Bangladesh own telecom facilities.When Banglalink entered the Bangladesh telecom industry in February 2005, the scenario changed overnight with mobile telephony becoming an extremely useful and affordable communication tool for people across all segments.

Within one year of operation, Banglalink became the fastest growing mobile operator of the country with a growth rate of 257 percent. This milestone was achieved with innovative and attractive products and services targeting the different market segments; aggressive improvement of network quality and dedicated customer care; and effective communication that emotionally connected customers with Banglalink.

Banglalink entered the market with a promise of making mobile phone affordable for people. This promise was kept and Banglalink was the first operator to introduce a flat rate for all calls for the convenience and ease of customers.Throughout the year, Banglalink continued offering products and services approaching different consumer segments with distinct communication needs. In August, 2006, Banglalink became the first company to provide free incoming calls from BTTB for both postpaid and prepaid connections

Banglalink focused heavily on enhancing service and quality during 2006. These enhancements were done in terms of network quality and customer service. Banglalink subscriber base grew by a hefty 253 percent in 2006 while the overall industry rose by almost 135 percent during the period

Product and ServicesBanglalink offers a number of products and value added services to its valued subscribers. These attractive products and services are designed to cater to the needs of the individual subscribers. We can divide all of these products into four categories; these are-

Pre-Paid Post-Paid Banglalink Enterprise Banglalink CU

Under these four categories there are several classifications based on the tariff plan and usage.

Types PackagesPre-paid Desh

Desh rang Ladies first

Post-paid Personal package 1 Personal package 2 Personal call and control

Banglalink enterprise Enterprise corporateEnterprise SMEEnterprise personal

Banglalink CU CU Std.CU call and control

Pre-Paid Products: Prepaid is a system where subscribers pay for their phone calls in advance. Prepaid gives subscriber the freedom to use their mobile within their budget. It is an excellent way to speak your language.

The products, Banglalink Prepaid has network mobility feature which helps a subscriber to move around where Banglalink has its coverage.

Ladies, first!-Banglalink ladies, first! Is the only telecom package that caters to communication needs of women of Bangladesh? Ladies, first! Revolves around the concept of community based communication where women need to talk to certain numbers mostly, to maintain a perfect balance between professional and personal priorities. Hence ladies, first! Offers 1 second pulse, 4 FnF and the time band of ‘your time’ has been extended from 7 am-5pm so that customers can talk at even lower rates to desired numbers.

LADIES TARIFF PLAN

OutgoingPeak (7 am-11 pm)Banglalink to Banglalink Tk. 1.79/minBanglalink to other mobile operators Tk. 2.00/minOff peak (11 pm-7 am)

Banglalink to Banglalink Tk. 0.25/min (from 11 pm-12 am Tk. 0.89/min)

Banglalink to any mobile Tk. 0.89/minFRIENDS & FAMILY (4 Numbers from BL-BL)12 am to 5 pm Tk. 0.25/min5 pm to 12 am Tk. 0.79/minSMSBanglalink to Banglalink Tk. 0.49/SMSBanglalink to others Tk. 1.00/SMS

1) ONE second pulse: First time ever in prepaid connections in Bangladesh: Banglalink has introduced 1 second pulse for the first time in the prepaid market through ladies, first! All ladies, first! Customers will enjoy this new benefit.

2) Late night rate until 9am: Only Banglalink ladies first offer subscribers late night rate facility even during the peak time. The rate is a 0.99 paisa/min Banglalink to Banglalink.

3) Bonus on Incoming: Banglalink prepaid ladies, first! Customers (m2m and standard) now get bonus talk-time for outgoing calls upon receiving calls. A customer will receive 20% free talk-time in a month based upon the calls received in the previous month.

4) Lifetime Validity: lifetime validity on prepaid account gives a customer the benefit of receiving incoming calls and staying connected forever. To get lifetime validity, a customer has to recharge his/her pre-paid account with a minimum amount of taka 10/- or above (via scratch card or -top up).

A new ladies, first! Connection will cost:

Taka 450 (m2m)-with taka 20 FREE talk time Taka 499 (standard with TNT incoming FREE)-with taka 20 FREE talk time

Desh and bonus prepaid customers can also migrate to desh for free by sending an SMS LF to 210. There is no cost for 1st migrating to desh but bonus customers will not be able to migrate back.

Customers of desh, regular prepaid may migrate to ladies, first! For the first time for FREE. After that any migration to any other prepaid package will cost tk 30/-

To migrate, SMS “LF” to 210 Migration to ladies, first! Will take 48 hrs to be effective and customers will get a

confirmatory message of migration FnF are only applicable for Banglalink numbers Customers can set FnF for free in the following way

o Go to new message option o Type the desired number that subscribers want to set as FnF o Send it to 3300

To set the rest of FnF, follow the same procedures This is a limited time offer For more information call customer care at 121 and 0191-310900. Conditions apply Vat Applicable

Customers of this package will enjoy discount in the following categories of shops for any purchases made:

Beauty parlor & Saloon Boutique shop Music Store Departmental shop/cosmetics shop Music Store Fast Food Restaurant Restaurant Fashion House Shopping Mall Flower & Gift Shop Hotel Jeweler Shop 1 second pulse after 20 second To recharge account and for balance inquiry:

o Call 123 (free of charge) and follow the direction or o To recharge account through SMS press *123* then scratch cards hidden

number # and SEND o For balance inquiry trough SMS: type *124# and send (free of charge)

Prices are VAT exclusive and subject to change without prior notice o Please buy all connections from exclusive Banglalink outlet/Banglalink own sales

center. o Please bring two copies of passport sized color photograph to purchase the

connection

Desh Banglalink “desh” was launched in September 2006. Banglalink desh is the best prepaid package for making class to any network in any time. The flat rate for desh is tk 1.96/min in

peak (9am-12am) and there are 3 FnF (friends and family)-to any operator. Banglalink desh gives subscribers the lowest SMS rate to any network Tk. 0.99/SMS.

The tariff plan for Banglalink desh is as follows:

"Banglalink desh" tariff plan

Outgoing

9 am to 5 pm*

Banglalink to Banglalink Tk. 0.69/min *

Banglalink to other mobile Tk. 0.69/min *

Peak (5 pm to 12 am)

Banglalink to Banglalink Tk. 1.45/min

Banglalink to other mobile Tk. 1.45/min

Off Peak (12 am to 9 am)

Banglalink to Banglalink Tk. 0.25/min

Banglalink to other mobile Tk. 0.99/min

FRIENDS & FAMILY (3 Numbers to any mobile)

Banglalink to Banglalink Tk. 0.25/min

Banglalink to other mobile Tk. 0.79/min

SMS

Banglalink to Banglalink Tk. 0.75/SMS

Banglalink to other mobile Tk. 0.75/SMS

30 second pulse is applicable from the first minute and the FNF rate is only 25 paisa. BTCB charges apply for desh standard connections

In addition, Banglalink desh stands out as the best pre-paid package for making calls to any network for the following reasons:

1) Lowest peak rate to call to any mobile : Banglalink desh offers customers the lowest peak rate to call to any mobile at Tk. 1.45/min

2) Late night rate from 12 am-9am: Only Banglalink desh offers customers late night rate facility during peak hours. Banglalink desh late night rate is applicable from 12 am-9am. The rate is

a. 25 paisa/min-Banglalink to Banglalink b. 99 paisa/min-from Banglalink to any other operator

3) Bonus on Incoming: Banglalink prepaid desh customers (m2m and standard) now get bonus talk-time for outgoing calls upon receiving class. A customer will receive 20% free

talk-time in a month based upon the calls received in the previous month except Banglalink.

4) Lifetime Validity: lifetime validity on prepaid account gives a customer the benefit of receiving incoming calls and staying connected forever. To get lifetime validity, a customer’s has to recharge his/her pre-paid account with a minimum amount of taka 10/-or above (via scratch card or i-top up).

5) EISD facility: Subscribers can call to 55 countries from their desh (even from M2M) connections at economy rate!

A new desh connection will cost: Taka 450 (m2m)-with taka 20 FREE talk time Taka 499 (standard with TNT incoming FREE)-with taka 20 FREE talk time

For existing ladies first/bonus prepaid customers Ladies, first and bonus prepaid customers can also migrate to desh for free by sending an SMS DS to 210. There is no cost for 1st migrating to desh but bonus customers will not be able to migrate back.

Desh Rang Tariff:

"Banglalink desh rang" tariff plan

Outgoing

9 am to 12 am

Banglalink to Banglalink Tk. 0.99/min

Banglalink to Others Tk. 1.75/min

Off Peak (12 am to 9 am)

Banglalink to Banglalink 25 paisa/min

Banglalink to other mobiles 99 paisa/min

FRIENDS & FAMILY (4 Numbers from BL-BL)

Banglalink to Banglalink Tk. 0.25/min

SMS

Banglalink to Banglalink Tk. 0.25/SMS

Banglalink to Others Tk. 0.50/SMS

60 sec. pulse will apply for FnF calls, late night call and all calls to other operators' numbers at all times. For any other call at other time, 30 sec. pulse will apply.

Calls to BTCL: BTCL charge will be added for standard

Post-Paid Products

Banglalink enterprise-your link to growth Regardless of the industry or size of the business, the aim is the same-growth! Speedy and reliable information flow is crucial to business. With this in mind, Banglalink welcomes customers to the world of Banglalink enterprise. It is the telecom solution for businesses that understands customer’s needs and offers customized communication solutions to help a customer’s business grow faster.

With Banglalink enterprise a company will be assigned a dedicated enterprise relationship manager who will provide personalized assistance round the clock.

Special benefits of Banglalink Enterprise: 1 second pulse Round the clock care line to answer all questions Customized price plans and packages to meet specific needs No security deposit for initial start-up and international roaming Free itemized bill Discount on connection free Banglalink enterprise family offer Smart business tools like GPRS, missed call alert, enterprise SMS broadcast, enterprise short code, fax and data service, free voice mail retrieval and more Convenient bill payment options Other value added services will be available as well

Enterprise personal packages Banglalink constantly strives to provide people the best service at the most affordable price. People can now choose the appropriate package based on people’s need and usage pattern.

Benefits of personal packages: Standard postpaid package with T&T Local, NWD, ISD and E-ISD connectivity) 1 second pulse Lowest call charges FnF to any mobile operator with a very low tariff Up to 15% monthly loyalty discount on airtime All incoming calls including T&T are absolutely FREE Economy ISD call charges (012) to 55 countries Low monthly line rent Hassle free bill payment through i’ top up GPRS and MMS service International Roaming International SMS Tk. 100 FREE talk-time for new connections Smart services like Amar Tune, Power Menu, Missed Call Alert, News Alert, Yellow

Pages, and many more

Basic GSM services (call conferencing, call waiting, caller ID, call divert/forward, call hold, call barring, etc)

Customer can choose from the following three personal packages based on their need and usage pattern:

Personal package 1 provides you the lowest call rates Waiver of monthly fee if usage is greater than Tk.500 (without VAT) duplicating mobile number facility Up to 2 supplementary connections with attractive group talk rate 10 MB GPRS & Miss call alert FREE (monthly) 20% bonus on incoming Up to 15 % loyalty discount

Personal package 2 Minimum monthly bill of Tk. 1.000 at the lowest call rates Monthly 150 FREE News SMS FREE itemized bill FREE golden number upon availability Duplicating mobile number facility

Personal call & control Usage through recharging scratch card/i’ top up Lowest monthly fees Helps keep usage within control

Call charges:

Minimum monthly bill has to be Tk. 1,000 excluding VAT. It the bill is not Tk. 1,000 then the difference amount will be charged as monthly line rent. For existing Banglalink postpaid 600 and 1200 package customers, minimum monthly bill will be applicable from May 2008 bills.

Promotional offer for BL to BL calls including BL to BL FnF calls from 00:00 hrs to 9:00 hrs.

FnF number can be any mobile number of BL or other mobile operators All prices are in BDT and VAT exclusive Conditions apply

Personal packageCustomers can enjoy loyalty discount every month based on monthly usage and length of stay with Banglalink. This means the longer subscribers have been with Banglalink the higher the discount they will receive.

The loyalty discount is our way to expressing gratitude toward subscribers, because their loyalty means that Banglalink is their preferred and trusted mobile operator.

This offer will be applicable for all existing and new customers from May 2007 and will be available until further notice.

Subscribers can enjoy the discount every month as mentioned in the following Table:

Length of stay with BanglalinkMonthly outgoing voice calls (Excluding T&T charge, Roaming & VAT)

Tk. 401-1500 Tk. 1501-3000 Tk. 3001+

More than 2 years 10% 12% 15%

More than 1 year, Less than 2 years 8% 10% 12%

Less than 1 year 7% 8% 10%

A customer’s length of stay will Banglalink will be calculated based on the date of activation of service with Banglalink.

For personal package 1 and personal package 2 customers, the discount amount will be adjusted with the monthly bill.

For personal call & control customers, amount equivalent to the discount will be uploaded every month to their account.

Pricing StrategiesPeople from different areas contribute their expertise to set the most strategic price for a product.

Accountants, financial managers and sales representatives provide relevant cost data. Designers, engineers contribute important data as well.

Prices are determined by the basic ways:

By applying the concepts of supply and demand. Completing cost-oriented analyses.

Economic theory assumes that a market price will be set at the point where the amount demanded and the amounts supplied are equal.

Cost based PricingPractice of adding a percentage of specific amounts to the base cost of a product to cover overhead costs and generate profits.

Cost based Pricing totals all costs associated with offering a product in the market, including research and development, production, transportation and marketing expenses.

Breakeven AnalysisPricing technique used for determining minimum sales volume a product must generate at a certain price level to cover all costs.

Involves different types of costs and total revenues. Helps to determine profits/losses that would result from several proposed prices. Calculations of required sales can be compared by the Marketers. The comparison can identify the best price, one that may exceed the breakeven point

and earn profits for the company. Banglalink joined the cell-phone Market a year ago. According to their plans and

strategies: they have a goal of reaching the breakeven point within a few years. Al the present, they are concentrating on increasing and holding their subscribers which

may cause a slow rate of progress in reaching the breakeven point.

Alternative Pricing Strategies

Skimming PricingSkimming Pricing is the setting of an intentionally high price relative to the prices of completing products. It may outline the firm’s high-end product from those of competitors as well. Skimming pricing is often used to recover a company’s product development costs before competitors are introduced in the market.

Among the huge market of prepaid users, the Upper-Class Post Paid competes completely in different consumers.

This certain type of offer differentiates itself relative to the other competing products of the same company’s market.

Penetration PricingPenetration pricing is the setting low prices in products and services as a major marketing weapon. This strategy helps marketers to increase the product prices after the product earns certain recognition among the consumers.

Banglalink introduced a Package, offering a basic Handset as well as a talk-time of 1800tk at the company’s very starting, where the total cost of the package was less the market price of the handset alone. The offer helped the company to make a very early impact among the consumers because of its unique offer.

Everyday Low Pricing and Discount PricingStrategy devoted to maintain continuous low prices rather short-term price-cuttings. As the mobile phone companies run their prices on rather different ranges of time-slots, Banglalink offers least in average pricing of their services compared to the other rival companies. The company is also continuing its efforts on reducing prices of their current offers until a steady, low priced strategy is achieved.

Competitive PricingTo reduce the emphasis on price competition by matching other firm’s prices and concentrating their own marketing efforts on the product, distribution and promotional elements.

Banglalink is among the first mobile companies to offer a different taste in telephone conversation by introducing voice conferencing.

Banglalink identified the deficit of a service that is neither too cheap not too expensive, and invocated a business offer named Call & Control Standard. This particular package includes many of the offers from the actual post-paid package to attract the customers but at a more standard price. Another attraction of this offer is that, the SIM card never deactivates even if it’s not used for a long time.

Price-Quality Relationships The consumer’s perception of product quality is closely related to the price of the item.

That is, a product may be expected to be valuable if its price is labeled in a higher price. Extreme prices are considered as too expensive or too cheap.

One of the up-coming products of Banglalink; will be offering mobile-to-mobile cell phone connections at only fifty taka per SIM card. The company has already planned to pay a percentage on those connections, and also aware of making the offer short-termed.

Certain priorities of the consumers.

Banglalink has taken initiatives for developing the ideas of consumers to prefer their company over their rivals by repetitive advertisements

Odd pricingOdd pricing is the strategy of setting prices in different ways, for giving a general idea of the price to be less; where the price of the product may not actually be so. Banglalink uses pricing charts in half minute pulse in most ads, where the general idea of pulse still remains in minutes. Among many of the prices set by this particular company, odd pricing can be found from text messaging prices to call charges.

Promotion

Advertising mediaBanglalink became a leader in terms of its advertising quality and setting very high standards for competition and others. To campaign their product most effectively. banglalink uses combination of different media to reach the highest percentage of the customers the combination would include :

Print media Television

Print mediaIt is the habit of our people to go through some kind of newspapers or magazines and Banglalink’s eye catching newspaper ads has attracted a lot of customers for the company

TelevisionThe corporate TV commercial of “din bodol” based on the theme “making a difference in people’s loves”. touched everyone throughout the country and was adjudged the best TVC of the year according to the leading dailies of the country like Prothom Alo and New Age. This TV Commercial has become a matter of national pride for Bangladesh as it has been nominated for the best TV Advertisement of the year with 4 other international television commercials at the GSMA Award 2007. GSMA Award is considered to be the Oscar of mobile industry.

BillboardsBillboards are the cheapest and easiest way to catch the attention of the moving people of the city. The billboards of Banglalink are hung beside the busiest of roads and streets of the city where people travel frequently such as Gulshan, Banani, Dhanmondi, uttara etc.

Transit AdvertisingOne of the most popular ways of advertising today is transit advertising, which are the ads on body of the big buses as majority of the people of the country uses them for traveling.

Health linkThey provide 24 hours health link service or telemedicine for Banglalink customers by dialing 789.

Other Promotional ActivitiesBanglalink continues to play an active role in the area of corporate social responsibility. Banglalink has given Dhaka International Airport-the gateway of Bangladesh a completely new look. Provision of high quality passenger trolleys, phone booths, emergency charging station and beautification of the premises is an exemplary initiative which no other multinational has taken. Banglalink also contributed to an important tiger conservation project in the Sundarbans, and continues to support the Cox’s bazar beach cleaning program.

ConclusionBanglalink is one of the largest foreign director investments in Bangladesh. The company, after its inception in February 2005, has grown rapidly into the leading mobile phone service of the country.

Banglalink operates in a very fast growing and increasingly competitive in the market. The decisions made by the company at this stage are crucial in securing its future position as the leading mobile phone service provider in the country.

The company uses a set discount rate based on the weighted average cost of capital and adjusts it by adding risk premiums to suit different risk characteristics of the projects. There are set guidelines for categorizing projects based on their risk profiles. The timeframe they use is basically based on government regulations on the estimated lifespan of the equipments and infrastructure. The cash flow is estimated based on input from the different divisions regarding the profitability and market potential of the project. Sensitivity analysis is conducted to evaluate the impact of different variables on the projects outcome.

Bibliography

1. http://www.banglalinkgsm.com/docs.php?id=about%20banglalink&docs_id=45 2. http://www.reportbd.com/articles/154/1/Banglalink---Making-a-Difference/Page1.html 3. http://en.wikipedia.org/wiki/Banglalink 4. http://researchexamples.com/report/strategic-management-2/my-debate-in-strategic-

management-course/5. http://blinkgsm.blogspot.com/