PresentationAn Overview of Banglalink

BUS: 101. Sec: 11

Prepared By:

Rafid Habib Id: 1220318030Md Fakrul Alam Id: 1220185030

Umma Kulsum Rafi Id: 1220978030Sabiha Murad Borsha Id: 1221260030

Prepared For:

Nadia AshrafFaculty School of Business

Submission date:4th August 2012

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Table of content

Contents………………………………………………………………………………………….Page No.

Acknowledgement……………………………………………………………………. 03 Executive Summary………………………………………………………………….. 04 History of Banglalink…………………………………………………………………. 05 Vision of Banglalink…………………………………………………………………… 06 Mission of Banglalink………………………………………………………………… 06 Objectives…………………………………………………………………………………. 06 Categories of Business……………………………………………………………….. 07 SWOT Analysis…………………………………………………………………………… 08

*Strengths of Banglalink

*Opportunities of Banglalink

*Threats of Banglalink

*Weakness of Banglalink

Marketing plan………………………………………………………………………….. 12 Promotional Strategies………………………………………………………………. 14 Conclusion…………………………………………………………………………………. 16 References………………………………………………………………………………… 17

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ACKNOWLEDGEMENTFirst of all, we would like to thank the Almighty Allah for giving us the moral integrity,

devotion, patience, and the ability to carry out this comprehensive research oriented project.

We are greatly indebted to our course instructor, Nadia Ashraf for giving us the opportunity to work on this project on entrepreneur of Bangladeshi telecommunication company Banglalink. Her direction, encouragement, guidance in particular has been invaluable for the improvement of our project. This report has enabled us to apply all that we learned in class and gives au the practical experience about entrepreneur and his business life. It enhances our knowledge about entrepreneurship business on how to get it done.

We are also genuinely thankful to all our friends and classmates, who have been co-operative in every aspect. All the other group leaders have also been equally supportive. It was indeed pleasurable working in the friendly environment.

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Executive summary

The report is on Banglalink which is the 2nd largest GSM cellular telephone company in Bangladesh. The company was chosen as it would provide an overview of an organization in a fast paced and highly competitive industry.

In 2004 an Egyptian Telecom company took over 100% shares of Sheba Telecom Ltd and rebranded it as Banglalink. Right from the onset the company became a name synonymous with “value” and this continued to be its biggest strength. Catering to prepaid, postpaid, SME, Corporate and PCO markets through value based products and offers the company also augments its services through Data services such as GPRS/ EDGE as well as an increasing VAS portfolio.

In a market with a lot of potential for growth the company has grown at a phenomenal rate and boasts a massive 25 million plus subscriber base. Despite increased levels of competition from aggressive marketing strategies of competitors as well s regulatory and other barriers the company sustains its growth through innovative products and service offerings and Value added services (VAS) which is successfully promotes through intense and relative branding activities. In fact the branding specially the flagship color has been so successful that common man normally refers to the orange color as Banglalink color. This phenomenal growth has been sustained thorough superior customer service and an expanding network currently covering the whole nation.

Through its core values which are to be straight forward, reliable, innovative and above all passionate Banglalink continues to deliver on its promises in line with its slogan “Din Bodol” which means bringing change to the lives of the people of Bangladesh.

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HistoryBanglalink was firstly known as Sheba Telecom in Bangladesh which was founded in

1989. It operated rural areas of 199 upazilas. Later it obtained GSM license in 1996 to extend its business to cellular mobile, radio telephone services and launched operation in the last quarter of 1997 with a Malaysian company’s joint venture.

In July, 2004 Egypt based Orascom Telecom purchased the stakes of Malaysian company in Sheba Telecom. Then an agreement was signed which was worth US$25 million to finalize the deal with Orascom Telecom. Orascom Telecom had to pay US$15 million for Technology Resources Industries (TRI) of Malaysia and another US$10 million to Standard chartered Bank to settle Sheba’s liabilities.

In September, 2004 Orascom Telecom Holdings purchased 100% of the shares of Sheba Telecom. It was acquired for US$60 million. Sheba had base users of 59000 of whom 49000 were regular. Afterward it was re-branded and launched its services under the brand name of Banglalink from the date of February 10, 2005. Banglalink’s license is a nationwide 15-year GSM license that expired in November, 2011.

But recently the parent company has changed again. Now another Europe based Telecom Company Vimpelcom undertook a merger with Orascom Telecom and became the parent company of Banglalink. After taking the ownership from Orascom Telecom Vimpelcom invested straight US$180 million for re organizing Banglalink and they also want to invest another US$300 to establish it as Bangladesh’s best telecom company that’s why have given their employee US$2.5 million bonus to motivate their employee.

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Vision of Banglalink Banglalink understands people’s needs best and will create and deliver appropriate

communication services to improve people’s life and make it easier.

Mission of Banglalink Their mission is, therefore, to reduce the total cost of ownership of buying and using a mobile phone. Moreover, to achieve these visions, the company has established some values that it tries to instill in its employees. They want their employees, and the company as result, to be straight forward, reliable, innovative and above all passionate.

Objectives of BanglalinkThe company has devised its strategies so that it earns healthy returns for its shareholders

and at the same time, contributes to genuine development of the country. In short, it pursues a duel strategy of good business and good development.

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Categories of BusinessBanglalink is a telecommunication company of Bangladesh. Its parent company was

orascom that is an Egypt based company but now it’s a company of vimpelcom. Banglalink introduce in Bangladesh to serve telecommunication service. Over time it has launched various packages. Current packages:

Prepaid:

Banglalink Desh Banglalink Ek rate Rangdhanu

Postpaid:

Inspire

Corporate:

Corporate solutions SME

Commercial:

Banglalink PCO

Data services:

GPRS/ EDGE Multimedia messaging (MMS)

Value Added Services (VAS)

Banglalink has a huge portfolio of innovative VAS solutions:

Also the company continuously offers different “Offers” to enhance the value for its consumers.

To enhance customer loyalty they have in place Priyojon Prize Points and Partnerships were the customers can enjoy gifts based on accumulated points as well as avail discount at partner outlets.

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SWOT Analysis

Strengths of Banglalink:-

The primary strength f the company is its Brand name and color which has been so successfully executed that now the orange color is referred to as Banglalink.

Another strength that can also be perceived as a competitive advantage of Banglalink is their current market share in the telecom industry i.e. after Grameenphone they are the second most used cellular service in Bangladesh with an active base of 25 million customers.

The company continuously provides value based offers for their consumer which has upheld its image as a value brand.

Customer care department of Banglalink is rated as amongst the most efficient in the business, always ready to help the customers and answer their queries regarding the service on time.

Effective decision making ability of Banglalink managers is also another significant factor that enables them to survive the cut-throat competition of the industry.

The financial strength of the group Vimpelcom provides huge support and confidence in network expansions as well as development of innovative VAS solutions.

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Opportunities of Banglalink:-

As mentioned earlier, the company created a strong buzz when it entered the market. Previously an unknown entity, many people now involve of the existence of vimplecom telecom. They have done their studies and know that OTH stands for success. Thus, the people are ready to see Banglalink as a total different entity from its predecessor and are really to give it another chance to re-invent its image in the market; not an issue to be taken lightly by the company. Others opportunities are:-

*Economic growth of Bangladesh: - Banglalink is the third highest tax paid company after Grameenphone and British-American Tobacco. It has brought a growth in our country.

*New and better interconnection agreement: - Banglalink are trying to sign different kinds of multinational companies as their partners. So that many companies are coming in this country to invest. It helps our economy to bloom.

*Huge need for telecom services: - In Bangladesh population is huge but telecom companies are less. So Banglalink is trying to cover the whole country to bring people into their network.

*Increased international activities in Bangladesh: - With the help of Banglalink many International activities are held in Bangladesh. This helps our country to become one of the proud nations in world map.

*Declining prices of Handsets: - Banglalink introduces many handsets at a very low price. So the people who could not have the ability to purchase one and easily can communicate with their near and dear ones.

*Future privatization of the fixed network: - Banglalink a network service of their own that covers the whole country like a net.

*Demand for inter-city communication: - Though it has weak network outside of the city like southern and northern part of Bangladesh, it has a huge demand for inter city.

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*Growth in other operator will give more connection: - Banglalink not only provide telecom services but also provide sponsorship in different types of program like social, science fair, game shows etc. It helps them to make their product more popular to people and make a growth of more connection.

Threats of Banglalink:-

The threats perceived are on 3 main fronts:

Operational:

Intense competition especially from the recently rebranded Robi as well as Airtel with their highly aggressive marketing and value offers.

Network perception is an area where despite having the second largest network in the country covering all 54 districts in the consumer mind network issues are exaggerated.

With 3G technology already ready to be launched for Teletalk and GP also upgrading its network to be 3 G ready the threat from 3G services especially against current data services is a cause for concern.

Regulatory:

In Bangladesh the regulatory body BTRC is extremely strict and not always operates in a business friendly manner which acts as a barrier for innovation and expansion.

High taxes on a new connection is a significant barrier as it makes the acquisition cost rise but the connection is sold at a very low price being subsidized by the company. This puts a very heavy cost burden on the company.

Economic:

As these are direct foreign investment based despite the company doing well the devaluation of Tk in relation to US dollar makes profitability to the stakeholders less and less.

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Weaknesses of Banglalink:-

*Network:

The greatest weakness of Banglalink and the most widely criticized service is its network. While the reception is quite clear when the user is out of doors, once inside, the reception breaks up. The worst part is the company as entered a market where the industry leader has been reigning supreme for years now and people are bound to compare the leaders service with Banglalink performance, even if it is fairly new to the market. People tend to forget that it had taken the leader more than 3 years.

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Marketing Plan of Banglalink

Situation Analysis:

Banglalink have started its first operation in Bangladesh in 2005. The products have been well received and the marketing is the key to the development of its brand image as well as the growth of the customer base. Banglalink now offering different packages for the customers but at the beginning year they offered packages as well as different mobiles sets for the customers.

Market Summary:

Banglalink posse’s good information about the market knows a great deal about the common attributes of the most valued customers. Before launching its experienced and prompt sell and marketing force observe the market carefully and better understood who is served, what is their specific needs and the way to communicate with the customers need and demand.

Market needs:

Banglalink is providing a wide range of services for its valued customers. The company seeks following benefits that are important for its customers:

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Quality service:

Banglalink is providing quality service to the employees. The customers don’t like the network problem and slow networking system. Banglalink recruits high professionals ‘employees and experts to make a network available for the customers. Banglalink is committed to its customers about the quality service.

Customer Service:

Banglalink has both online and physical customer care service for its customers. The valued customer can solve the problem over mobile phone dialing 121. It has also customer care service all over the country mainly in the city areas.

Service at low price:

Highly competitive tariff and value enhancing offers.

Market Growth:

Even though the tele density of Bangladesh is still very low the user base for all the operators is not growing at a very fast rate anymore.

Rather customers are switching between operators resulting in multiple operators fighting for the same customers giving a rise to dormancy and churn which have to be offset by reactivation promotions.

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Promotional Strategies

*Advertising media:

Banglalink 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

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

*Television

The 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 The New Age. This TV commercial has become a matter of national pride for Bangladesh as it has been

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nominated for the best TV advertisement of year with 4 other international televisions commercial at the GSMA award 2007.GSMA award is considered to be the Oscar of mobile industry.

Below the line BTL advertising:

SMS broadcast is a very effective low cost promotional tool. Along with Point of sales material (POSM) branding.

*Billboards

Billboards are the cheapest and easiest way to catch the attention of the moving people of the city. The billboards of Banglalink are huge besides the busiest of roads and streets of the city where people travel frequently such as Gulshan, Banani, Dhanmondi, Uttara etc.

*Transit Advertising

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

Flash mob:

Banglalink has introduced an innovative branding technique for the first time in Bangladesh called a Flash Mob where people in a crowd suddenly starts dancing in a synchronized way to music and then disperses as suddenly as they came.

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Conclusion

Banglalink is one of the largest foreign direct investors 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 market. The decision made by the company at this stage is 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 project. There are set guidelines for categorizing

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project 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

In line with its slogan “Din bodol” the company continuously strives to come up with offerings that will continuously work to change the lives of people of Bangladesh.

Reference list

http://www.banglalinkgsm.com/docs.php?id=160http://www.scribd.com/doc/56582300/BangLaLink-Annual-Report-2009http://marketingmixx.com/marketing-plan-2/198-banglalink-marketing-plan.htmlhttp://www.oppapers.com/subjects/marketing-strategy-of-banglalink-page2.htmlhttp://www.scribd.com/doc/17440028/Swot-Analysis-Based-on-BL-Support

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