City Cell

Term Paper Marketing Plan on CityCell Digital Course Title Advanced Marketing Management Course Code MKT 302 Course Instructor Mr. Mahmud Hassan Furnished BY Md. Murtoza Ali (Nayon) 0221022 ……………….. Rezwanul Islam (Rony) 0221014 ……………….. Date of Submission 14th July, 2004 Independent University, Bangladesh Chittagong Campus 1.1 About Pacific Bangladesh Telecom Limited Pacific Bangladesh Telecom Limited (PBTL) is a concern of pacific group of industries. The pacific group is a group of companies operate under a common ownership. The umbrella company has many interests, which include automobiles (Pacific Motors Limited), banking (Arab Bangladesh Bank), consumer electronics (Pacific Industries Limited), pharmaceuticals (Therapeutics Bangladesh limited), fisheries (Bengal fisheries limited), tea (Noyapara Tea Company limited) and telecommunication (Pacific Bangladesh Telecom Limited). Pacific Bangladesh Telecom Limited (PBTL) as the pioneer in introduction in cellular telecommunication in Bangladesh started its journey in the year 1993 under the name of

CITYCELL which provides services through AMP (Analog manual programming) technology. In 1999 PBTL went a step further by introducing CDMA (Code division multiple access) technology, a completely digital cellular technology with the new name of CITYCELL DIGITAL. With this PBTL has established it self as the first telecom operator to implement this new and advanced technology, not only in Bangladesh but also in south Asia. For further advancement PBTL has tied up with global telecom giants like MOTOROLA and FUJITSU. 1.2 The Founder & the Executive Body The company is founded by renowned and distinguished industrialist M. Morshed Khan. The Executive Body of the wining team is as follows: Acting Chairman → Mr. Asghar Karim Managing Director → Mr. Faisal Morshed Khan Chief Executive Officer → Mr. Chris Maloy Advisor → Mr. A K M Ziauddin 1.3 Nature of the Business Pacific Bangladesh Telecom Limited (PBTL) has redefined the Telecom Business through marketing innovation, Unique BTTB connectivity, continuous technological up gradation & the highest standard of service to our customers proving that we value your money, and treasure customer relationship. 1.4 Mission To be the most success cellular, paging and other wireless service provider in Bangladesh by virtue of having greater operating expertise. 1.5 Mission Statement “ Because we care ” 1.6 Vision Best quality service provider in the telecom industry and provide a complete communication solution to their customer with a smile. 1.7 Products & Services

CityCell offers different products and services for their consumer. Each & every product & services varies from each other shaped by attractive features. CityCell Post-Paid Tellular Pre-Paid CityCell 500 Alaap – 24 Shabar Phone Alaap – A Amar Phone Alaap – B 1.7.1 Post – Paid .7.2 Pre – Paid Notes: All the above charges will include 15% VAT. From second minute 20 seconds pulse will be applicable. Both of the packages have Nationwide Roaming Facility. 1.7.2 Tellular Picture of set …………………… 1.8 Core Competences The key of winning and keeping customers is to understand their needs and buying processes better than competitors do and to deliver more value. It means an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing that justify higher prices. Here we point out some core competences or competitive advantages of CityCell which are as follows:

1.8.1 CDMA (Code Division Multiple Access): Code Division Multiple Access (CDMA) is a radically new concept in wireless communications. It has gained widespread international acceptance by cellular radio system operators as an upgrade that will dramatically increase both system capacity and the service quality. CDMA is a form of spread-spectrum, a family of digital communication techniques that have been used in military applications for many years. The core principle of spread spectrum is the use of noise-like carrier waves, and, as the name implies, bandwidths much wider than that required for simple point-to-point communication at the same data rate. The CDMA technology gives you certain benefits over the other prevalent mobile technologies some of them are: Superior voice quality and clarity by eliminating background noise. Low power consumption, hence higher talk time, enhanced battery life. Minimum health risks compared to other wireless technologies. Increased security and privacy as none other then the called person can listen to your conversation. Higher data transfer rates. 1.8.2 RIM (Removable Identification Module): CityCell recently started to introduce CDMA RIM based handsets in addition to their selection of regular pre-programmed CDMA handsets. RIM stands for removable identification module , which stores customer’s data ,including personal phone books , and can be removed and inserted into a new CDMA RIM compatible handset at any time, giving customers the freedom to change their handsets whenever they like, provided it’s a CDMA handset . RIM not only gives customers the freedom to change their handsets at any time, but also to enjoy the benefits of the CDMA network technology. Being the only CDMA operator in Bangladesh, CityCell has really brought the world’s best mobile technology to Bangladesh – and now customer also have the option to enjoy the flexibility of choice with RIM based CDMA phones. 1.8.3 Cash Card: “A new an convenient way to pay bills” Under this assumption CityCell first introduced cash card for post paid customers to pay their bills. As our lives become increasingly busy, it is sometimes hard to keep track of all the administrative things such as phone bill payments that customer have to take care of on a weekly or monthly bases. CityCell now makes it easy for their customers to pay their phone bill with the CityCell cash card. CityCell cash card is a novel and innovative way for the post paid customers to pay their bills over telephone. The maximum CityCell customer need is a cash card and their CityCell phone and they can pay their phone bill from anywhere, anytime. No more standing in

the queue or trying to beat the operating hours of banks or service centers and customer can use the cash card 12 months a year , 24 hours a day , 7 days a week . 1.8.4 Online Customer Care: CityCell introduces internet technology to make a convenient way of their customers through online customer care. Online customer care is a way by which customer can easily Hang their complain Check their bills Hand set repair status Problem solving 1.8.5 Automated Customer Responses: CityCell Customer can check their bills 24 hours a day with automated response from the technology that they use. With this they can also check the latest packages, sets and value added services that CityCell recently offers. They can also post their complains any time they face it, CityCell employees will try to solve that immediately with their response else they would try to solve that other way. 1.8.6 E-Mail Massaging: CityCell offers e-mail massaging for their customers without using the WAP and by only a figure tips. They use the advanced CDMA technology to build this e-mail massaging system, which provides their customers to send and receive e-mails through their CityCell handset. CityCell provide their customers a unique e-mail ID which can be verified such as 011××××××@sms.citycell.com 1.9 Competitors In the telecom industry CityCell has three competitors. They are Grameen Phone, Aktel and Sheba. More description about their competitors is shown in the following table: Competitors Grameen Phone Aktel Sheba Position According to Market Share Market Leader Market Challenger Market Follower Competitive Position Dominant Favorable Tenable Reaction Pattern Tiger Selective Laid-Back

1.10 Functional Departments of CityCell 1.10.1 Sales and Marketing & Customer Service Operation: The sales and marketing department functions in different categories such as corporate sales, direct sales, channels management, product development, research and brand marketing. Sales and marketing is responsible for setting up of the sales channels and mechanisms by which the service packages are actually sold to the customers. This department also has the very impartment job of setting up marketing channels by which packages are distributed among the clients. Customer service operation is responsible for coordinating all sorts of customer support activities. Another functional area under the customer service operation is workshop. 1.10.2 Engineering: The department is responsible for installation and maintenance of all the telecommunication equipments related to CityCell and the major telecom channels required for providing services to customers. 1.10.3 Finance: This department is responsible for coordinating of various finance and farm management activities of CityCell. This department also looks after the functioning of central stores form where mobile sets, all other accessories and all sorts of stationeries are issued. 1.10.4 Administration: The main function of administration is making contracts, legal affairs, protocol, and liaison with government, purchase and general management. It coordinates all general maintenance, transportation management and security. This department is responsible for negotiations for real estate and other ‘land’ factors. 1.10.5 Human Resource: This department is responsible for recruitment, human resources information management, preparation of policy or procedures manual & job description, performance appraisal & management, training & development, job analysis and coordinating all sorts of industrial attachment program’s 1.10.6 Billing & IT: Billing activities include bill generation, dispatch of bills and risk management. Whereas risk management area responsibilities include checking usage against credit limit. IT section provides all sorts of system or technical support. 1.11 PRODUCT LIFE CYCLE

Invention of a product is the discovery of a whole new industry this new formed industries experience different marketing process with the passing time. Generally industry faces four stages in her lifecycleIntroduction Growth Maturity Decline According to this life cycle telecom industry is measured to be in growth stage. It has got most of the characteristics of growth stage: After the invention of a new product more and more company joins it as the demand of that particular product is more than supply and also a good margin of profit can be obtained form here. Also newly added features and facilities are offered by this company which shows that competitive mode of growth stage. Another main characteristic of this stage is price competition. When CityCell introduced cell phone in Bangladesh for the first time they charge very high price as it is done in introduction stage but as other company begins their operation in the market the fall of price is really dramatic. So, on the basis of these characteristics we can argue that they are in growth stage. 2.1 Current Business Location The different offices of CityCell are situated in the heart of three cities. These are Dhaka head office (Mohakhali), Dhaka branch office (Kakrail), Chittagong office (Agrabad) and Sylhet office (Upashahar). CityCell choose this location so that they can easily reach to their customer and also the customer can effortlessly come to them. They also selected these locations to communicate with their distribution channel much easier than their competitors. 2.2 Target Market Segmentation process of any company is based on segmentation, then targeting and lastly positioning. Like all other companies, CityCell also target their market by market segmentation. The brief description of it is given bellow: 2.2.1 Geographic Segmentation:

As for its business type CityCell usually don’t need to do geographic segmentation. 2.2.2 Demographic Segmentation: Demographic segmentation usually carries several variables. But as CityCell is in a service oriented business they only matters some diminutive topics. 2.2.2.1 Age → People of different stage of life have different needs. But there is nothing rules of age on using cellular phone. Generally when people feels that they are busy enough and need a communication device always than he can buy one. People of above 18 year of age usually seem to use cell phone. Also the same thing we can tell about CityCell. 2.2.2.2 Income → Anyone is only meaningful to a market is he or she has the resources to buy as use the product. So, this not only depends on need but also depend on the ability of spending money through this purpose. CityCell target the customers of high income customers. Usually CityCell target their customers who have the monthly income at minimum of 8000-25000 or above. It some time varies for special purpose like students. 20,000+ Income Range (8,000-12,000) (6,000-8,000) Fig : Income segmentation by CityCell Fig : Target market of CityCell on the basis of imcome 2.2.2.3 Occupation → Occupation is in relation to decision maker in terms of using mobile phone. In short it more often than not depends on occupation that is the product actually need at all or not. CityCell targets fairly all types of people from different occupation. Fig : Target market of CityCell on the basis of occupation 2.2.3 Psychographic Segmentation: There are many variables under psychographic segmentation. But CityCell only concentrates on social class. Social Class Segmentation Middle Class

Upper Class Upper Middle Class Lower Middle Class

Fig : Market Segmentation by CityCell on the basis of social class 2.2.4 Behavioral Segmentation: As for its business type CityCell usually don’t need to do geographic segmentation. 2.3 Market size The market size (in terms of taka value) of telecommunication industry is approximately 556,00,00,000 Tk in every year. We calculate it on the basis of CityCell’s market share and their total yearly sales is shown in below: Total Market Size (in taka) = Sales (in taka) of CityCell * 100% / Market Share of CityCell = 50 corers * 100% / 9% = 556 corers. Fig : Sales in Taka (Corers) per year Fig : Profits in Taka (Corers) per year 2.4 MARKET SHARE CityCell is the 3rd company in telecommunication industry on the basis of market share. The market leader is Grameen Phone. And after Grameen Phone Aktel is the 2nd company which has more market share then CityCell. In addition, Sheba is the last company with smallest market share in the telecommunication industry. Fig : Market Shares Fig : Market share of services 2.5 Reasons that customer buy the product Ten to twelve years before the communication among the people was not that good as now. CityCell first introduced cellular phone as a service provider known as the pioneer in telecommunication industry. By which they tried to make communication in a steady position by which people can communicate easily. CityCell also first introduced BTTB incoming in prepaid service. And they always try to reduce the price range and want to make it affordable for each

and every user of them. That’s why people are heading toward CityCell for their communication needs. 2.6 Place & time that customer BUYS the product CityCell reach to their target customer by Distributor, dealer also from their located customer service center. Fig : percentage of customers purchase from CityCell outlets Usually CityCell can offer their packages for their customer any time during a year. But officially they launch their packages after the government of Bangladesh declares the budget in July. Generally CityCell offer their packages in between August-September. Excluding that for some special occasion like Eid-ul-Azha, Eid-ul-Fitre, Pohela Baishak etc. CityCell offers their packages with discounts and new features towards their target market. 2.7 SWOT ANALYSIS 2.7.1 Strengths: Strength is the inter element of a company that help the company to reach its goal. The strengths of CityCell are discussed below: 2.7.1.1 CDMA Technology → The CDMA technology gives you certain benefits over the other prevalent mobile technologies such as superior voice quality and clarity by eliminating background noise, low power consumption; hence higher talk time, enhanced battery life, minimum health risks compared to other wireless technologies, increased security and privacy as none other then the called person can listen to your conversation, higher data transfer rates, reduced interference on other electronic devices. 2.7.1.2 High Budget → The exact figure of CityCell yearly budget is confidential but observers assume that CityCell provides relatively higher budget from those of its competitors. The board of directors of CityCell includes some of the big guns of the country. So, CityCell has a great potentiality regarding its budget. 2.7.1.3 Low call rate → The industry of mobile service is very much priced sensitive. CityCell is offering some good facilities regarding pricing. CityCell is offering the lowest call rate with some exiting options. Such as pulsing, peak and off peak hour facilities, first minute T&T incoming free. Which other company do not offer. 2.1.7.4 The first cellular phone service provider to introduce BTTB incoming in pre paid cell phone → CityCell have first introduced the BTTB incoming facility into their prepaid packages. They gave their customer an opportunity to receive any incoming calls from BTTB. Later they have also introduced BTTB outgoing facilities at off-peck hour (8:00 pm – 8:00 am).

2.7.2 Weaknesses: Weakness is the internal causality that hampers a product image. CityCell has got some weaknesses which are discussed below: 2.7.2.1 Poor consumer perception → CityCell has got poor consumer perception. Though it was the first company to operate mobile business of the country but it charges a very high rate which affected its image when Grameen provide the service in much more lower cost. Still now people consider as a high price product when it is serving at lowest price. So this is a big problem for CityCell. 2.7.2.2 Complex in changing CDMA hand sets → As we know that in GSM technology we can easily change the hand set. But it is much more difficult and complex to change the CDMA technology based hand set. So in case of choice in new sets on behalf of the old one customer have to go to near CityCell customer service center. 2.7.2.3 Stumpy availability of CDMA hand set → As CityCell is the only CDMA service provider in Bangladesh and a very fair amount of customers usually need to change their sets. Thus the availability of CDMA hand sets is very stumpy in local market. 2.7.3 Opportunity When some decision from outside add extra advantage to the marketing process then it is known as opportunity. 2.7.3.1 Political advantage → Politically CityCell has got a very bright chance of exploding its business. Some of the high officials of recent government are part of the board of directors of CityCell. If CityCell can use thus opportunity it will give them advantage in the long run. 2.7.3.2 Agreement with SINGER → In another agreement with SINGER Company CityCell has given the right to sell their mobile in 132 SINGER outlets around the country. This is a great opportunity for them because SINGER is one of the most experienced and well-known company with huge extensive coverage through out the country. This will help them to reach all part of the country. 2.7.4 Threat Threat is the ruinous decision for a company taken by outside of the company’s environment. 2.7.4.1 Competitor’s threat → For any product, competitors’ threat is the biggest threat. And it is a very true picture in today’s communication technology. In Bangladesh the field of mobile service is still in growth stage. Four major companies are fighting for their market share. Among the Grameen phone is in the number one position with their most coverage, and Aktel is in second position with their second most coverage. So these two companies can be a big threat for CityCell.

2.7.4.2 BTTB is coming → Enormous threat for CityCell and other mobile service company is that BTTB is going to launch their new segment of business and that is mobile phone service provider. As you would expect BTTB will offer their mobile service at lowest possible rate and also their coverage and acceptance is highest. So it could be a red alert for private telecom service. 2.8 pricing strategy The pricing strategy of CityCell is shown in the following table: Overcharging Strategy Market Skimming Strategy High Price Good Value Strategy Medium Economic Strategy Perceptual Position 2 Perceptual Position 1 Low Low High Medium Value At first CityCell follows market skimming strategy. Then they charge according to overcharging strategy by adding low value to their customers. When the competitors are increasing, they go for good value strategy. But now according to their objective they want to satisfy their customer by perceptual position 1. If it is not possible then they go for next perceptual position 2. 2.9 Cost strategy

Now they are tracking the following cost strategy: Low Cost Strategy Lower Quality Handsets 2.10 Geographical Coverage Geographical coverage refers to a set of certain geographical location where the product or of a particular brand is available. It is very important for market to define the geographical area for his product very well. Generally geographical coverage defines with respect to city, town, national, international, regional, northern, southern, village etc. CityCell is operated in Bangladesh in only in the six divisional cities and small town decide these big cities. Currently CityCell operating their service in these following areas: Dinajpur Syedpur Rajshahi Rangpur Sirajgang Natore Tangail Gajipur Bagura Narayangang Shahji Bazaar Mymensing Habiganj Chatak Bhaluka Sunamganj Bishawhath Kustia Sylhet Biyani Bazaar Pabna Moulovi Bazaar Srimongol Manikgang Brahmin Baria Norsingdi Jossore Chandina Chauddagram FaidPur Lakhsham Comilla Barisal Hajigang Chadpur Madaripur Begumgang Laxmipur Pirojpur Cox’s Bazar Chiringa Bhola Satkania Sanduip Chittagong Dhaka Competitive analysis of GP 3.1 About Grameen Phone Grameen Phone added a new era in telecommunication system of Bangladesh in 1997, which changed total environment of networking system and also people’s life. At the very beginning, it was a project of village phone administered by Grameen Telecom in cooperation with Grameen Bank, the internationally renowned micro-credit lending institution. The village phone program, the first step of Grameen Phone of their journey in Bangladesh, began in 26th March 1997 with a social commitment made by Grameen Phone its shareholders, ”Good development is good service”. Attain their goals one after another, now a day their commitment has changed into, “All in one”. Grameen Phone wants to deliver maximum benefits to the customers that they expect from a product or service.

The village phone program is a unique effort to provide telecommunications facilities in rural areas while providing the village phone operators, mostly rural poor women, and a good earning opportunity. 3.2 Packages & Features of Grameen phone 3.2.1 Post – Paid: Under Post Paid Service currently two products are available, 3.2.1.1 GP Regular → GP Regular connects to BTTB and all mobiles through out the country where Grameen Phone has its Network. Grameen Phone Ltd. has introduced Network Mobility for all GP Regular Subscribers whereby a GP Subscriber can make and receive calls from anywhere within Grameen Phone Coverage in Bangladesh. With the introduction of Network Mobility the existing tariff structure for GP Regular Subscription will remain unchanged when receiving and making calls while being in his/ her home zone (A Zone where the subscriber is registered with GP). When a GP Regular Subscriber is outside of home zone, an additional Network Mobility charge on top of the existing incoming charge will be applicable for receiving calls from all mobile phones and BTTB phones. VAT and levy, if any, will be applicable for all outgoing and incoming calls as per Govt. Regulations. Currently GP Regular Connections are available in Dhaka, Chittagong, Sylhet, Khulna & Rajshahi. 3.2.1.2 GP National → GP-GP National connects to all GP mobiles through out the country where Grameen Phone has coverage. It has network mobility facility by which a subscriber can roam around the country where Grameen Phone has its coverage. GP-GP National & GP Regular subscribers enjoy a number of Features: GSM Features (Caller id, Call waiting, call conference, call divert,). Value Added Services (Voice Mail Service/vms, Short Message Service/sms, Fax and Data Service, Push-Pull Service, Information Service, GP WAP). 3.2.2 Pre-Paid: Introduction of Grameen Phone's EASY Pre-Paid Service is another development of mobile telephony in Bangladesh. EASY have National Roaming facility and a flat airtime charge. Subscribers can subscribe the service from all GP authorized points of sale. To start with, a subscriber has to buy the EASY Starter Kit and a handset. The Starter kit contains a pre-activated SIM card and a Green EASY card of BDT 300. EASY features: No Monthly Bills Flat rate of Tk. 6 per minute No Security Deposits

No Monthly Access Fees No Waiting for Activation Instant Connection National Roaming Facility GSM Features like Caller ID and Call Divert to Voice Mail Service EASY Cards of two different values and colors Value and Validity Period of Different EASY Pre-Paid Cards # 1 2 Cards Green Red Face value Tk. 300 Tk. 600 Expiration 21 Days 45 days

3.2.3 Easy gold: Grameen Phone has launched new product Easy Gold in the market place to fulfill customers demand. It provides 24 hours customers’ services among the whole world with BTTB facilities and also pre paid offers to the customers. 3.3 Quality Grameen Phone provides a distinct level of quality throughout our country. It has covered its services more than any other cellular services in Bangladesh. It provides services in 49 districts in six division of Bangladesh. The services of Grameen Phone is Fully International in Standards which is again a different Quality from other competitors . Grameen Phone Believes in Covering Mass Market. It had no intentions to satisfy niche Markets from the time it was established. That’s the main quality that makes Grameen Phone Unique from other service providers. 3.4 Brand Name Grameen Phone 3.5 competitive advantages 3.5.1 Short Message Service (SMS):

SMS in your mobile acts like an advanced pager. One can send and receive text messages of up to 160 characters, directly from one GP mobile to another GP mobile. 3.5.2 GP WAP:

WAP stands for "Wireless Application Protocol"- a tool developed specifically to allow mobile phones to access and display the internet contents on mobile handset. GP WAP is the unique and personalized internet Mobile Service that brings you to a world of information, communication & entertainment. GP WAP service is available with both Post-Paid & Pre-Paid connections. GP provides 24 hours customer services with some special numbers. These are, for Human Agent for Automated Service Any Customer can ask for support or can get help by dialing this number. 3.6 Coverage 61 districts!!! Its old news …historically Grameen Phone already 460 sub district has coverage in of Bangladesh base on subscribers. And Grameen Phone's network is divided into six zones according to divisional borders Dhaka, Chittagong, Khulna, Rajshahi, Barisal & Sylhet . 3.7 Complain assessing Procedure Grameen Phone always conscious about customers & consumer’s complain. When any consumer finds any fault with their product, he or she is earnestly requested to inform that to company or different distributor or the sales agency from which she or he buys that. After that there is certain procedure which is given below: 3.8 Networking System Grameen Phone’s network is divided into six zones according to the divisional borders: Dhaka Zone, Chittagong Zone, Khulna Zone, Sylhet Zone, Barisal Zone and Rajshahi Zone. Currently GP is operating in all six zones. The zone in which a subscriber is registered with Grameen Phone is that subscriber's Home Zone, and all other zones are Remote Zones. 3.9 Customers Relationship Some special facilities, offers and services make Grameen Phone different from others competitors. It’s established an Insta Care department for their customers’ service that drives them to reach the customers satisfaction. There they deliver information round the clock. It offers Instant information at the tips of customer’s finger. Currently they offer per minute 4 TK from 12 am to 8 am and 3 TK per min round the clock for Easy Prepaid. And also offers another

one is for GP National, 1.5 TK per minute saving 3 numbers at any time for entire Bangladesh. They also facilitated with SMS Banking through push and pull system that is easy to apply and quick process to aware about anyone’s account’s daily or month- end balance. They have changed their recharging system and inform through daily newspapers so that customer will not face trouble. To increase relationship with customer and to expand telecommunication they recently introduced a fair on mobile---“MOBILE MELA” from 1st June 2004 to 4th June 2004 at Pan Pacific Sonargaon Hotel, Dhaka. 3.10 Strengths GP has a well renowned brand name in the telecommunication industry in Bangladesh. GP has the largest network coverage allover Bangladesh. GP has the international roaming facility with cooperation with 186 other countries all over the world. The company has a country-wide distribution channel. The company has necessary human resource and skilled employees. 3.11 Weaknesses Lacking in marketing plan and program. GP have a single network server to control the overall network system in Bangladesh. The Maintenance cost of GP’s packages are relatively high than their competitors. Competitive Analysis of AKTEL 3.12 About Aktel TM International (BD) Ltd. branding its services "AKTEL" is in operation in Bangladesh since 1997. It is a company incorporated in Bangladesh with the objective of offering the state-of-art and modern telecommunications services to the people of Bangladesh at competitive prices. TMIB received license to operate GSM cellular phone services in Bangladesh in 1996. TMIB, a joint-venture company formed between Telecom Malaysia Berhad holding 70% of the equity capital and 30% local shareholding by M/s A. K. Khan & Co., Limited. The over all company growth and satisfactory performance have been achieved under the dynamic leadership of Dato' Ezanee Ab Aziz, CEO and Managing Director of 'Telecom Malaysia International (Bangladesh) Limited'.

The success story started with the commercial launch of AKTEL services in Bangladesh in 15th November, 1997. It was not only a service launching ceremony but also worked as renewal of friendship between two brotherly countries-Malaysia & Bangladesh. The ceremony gathered ministers and dignitaries of both the countries where they had an opportunity of exchanging views of bilateral trade and cultural interests. As at December 2002, TMIB has a total of 310 staffs composed of locals and expatriates to serve more than 170 thousand customer bases. Presently TMIB offers GSM digital cellular services in all divisional headquarters and all major big districts. Beside the basics cellular phone services, the company provides several value added services (VAS) to its customers like Voice mail, SMS, Tele-info, Tele Ramadan etc. 3.13 Packages & Features of Aktel 3.13.1 AKTEL Standard: It was the first package and service of AKTEL. It provides the facility to both way T&T connections. It means you can dial and receive calls from T&T. and you can get this Standard Connection for Zonal, NWD or even ISD calls. It has a competitive call rate and connection fee. And it is the most popular and demanding product of AKTEL. 3.13.2 AKTEL Plus: AKTEL Plus gives you the facility to have T&T incoming calls on your phone for 24 hours. It also offers 1st minute free talk-time and pulse on every 30 seconds. It is very demanding among students and middle-class people. 3.13.3 Pre-Paid Plus: Pre-paid Plus offers T&T incoming facility in your Pre-paid mobile phone. You can call on any cellular phone subscriber in Bangladesh. It is highly appreciated among youngsters. .13.4 Pre-Paid One: This package allows the subscribers to make and receive calls in any other mobile phones as long as he has sufficient amount of balance in his account. 3.13.5 Night Bird Package: Night bird package allows all the Subscribers of AKTEL Regular and AKTEL Plus to talk at Tk. 0.75/30sec in off-peak hours (11.00pm to 08.00am). 3.13.6 Reach Out Package:

The newly introduced Reach Out package gives the opportunity to its subscribers to have Standard Post-paid connections at 60% off price. In this package call rate of Post-paid Mobile Plus and Mobile Link are 33% reduced and Inter-zonal call-rate and call rate to dial other cellular operators also 33% off. 3.14 Distribution Channel There are over 200 Aktel outlet under 4 authorized dealers located throughout Bangladesh. Authorized dealers sell mobile phones and sell prepaid recharge card. In addition, consumers can purchase postpaid and prepaid packages. Packages are available in 100’s of smaller retail outlets throughout Bangladesh. With a network of sales centers and authorized dealers, Aktel Company is covering all major towns in Bangladesh. The main distributors of Aktel are as follows, K. Khan Co & Ltd. Integra Communication Ltd. Maple International Ltd. MobiPhone cellular. PC Tel Ltd. 3.15 Strengths First time introduced the 'mobile Plus (BTTB Incoming Connectivity only) Product Services' in Bangladesh. First time introduced the Seamless Coverage throughout the Dhaka-Chittagong Highway and named it as 'Chittagong Dhaka Corridor (CDC)'. First time introduce the full-fledged IVR based Customer Services (Call Center) in telecom market. 3.16 Weaknesses Aktel does not have a fair promotional activity. Aktel has a very low budget for a continuing year. Aktel does not have the nationwide roaming facility. Marketing strategy

Objective is a specific performance task that needed to be achieved. Managers use the term objectives that are specific with respect to time and magnitude. Turing objectives into measurable goals facilitate management planning, implementation and control. Every company has several objectives in different functional areas. The business unit set these objectives and then manages by objectives. Objectives must contain the following four characteristics: It must be arranged hierarchically, from the most to least important. It should be stated quantitatively whenever possible. It should be realistic. It must have a time frame. Like other companies CityCell have some objectives on the basis of their mission and vision. According to their objectives they set game plans to achieve those objectives. While preparing the marketing plan, we point out some objectives of CityCell in marketing and financial areas. The Marketing and Financial Objectives of CityCell are listed in below. Marketing Objectives To increase market coverage through low cost by 5% (app.) within five years. Constitute network coverage in 10 more districts of Bangladesh within 2006. Financial Objectives Improve technological support more effectively in post-paid services within 2007. Raise their current profit by 9% within 10 months through value added features with low cost. Decrease the rate of syndicate loan by 4% in every year. Marketing strategy 5.1 introduction CityCell has established to provide technologically high CDMA cellular service to its customer. CityCell is providing High quality CDMA technology over time. CityCell has some purpose: Firstly, to receive an economic return on its investment and to contribute some benefits to the economic development of Bangladesh as telecommunication sector plays a vital role. Secondly, to serve CDMA cellular technology to the people of Bangladesh with a fair low price that they can afford. Lastly, to serve the customer with their maximum effort to make them delighted.

Cellular phones are spreading rapidly throughout the country. Today more than 35 laks (appx.) of cellular phone user are in Bangladesh. And the rate is abnormally increasing day by day. CityCell already captured the six major divisions of Bangladesh. 5.2 Marketing Mix 5.2.1 Product: 5.2.1.1 Variety → CityCell offers variety of products1. Post-paid => CityCell 500 => Sabar Phone => Amar Phone 2. Pre-paid => Alaap- 24 => Alaap- A => Alaap- B 3. Tellular 5.2.1.2 Quality → CityCell heavily trying to maintain the quality of their packages. To serve the best quality they are doing their best to use the advanced CDMA technology. CityCell is very much conscious about their customer satisfaction. 5.2.1.3 Design → As CityCell is a service oriented company; design is not an alarming matter for them that design is not eligible for them. But as far as the cellular handset matter they try their best to keep a regular eye on the CDMA handset manufactures and they also try to import fair designed sets form them at a margin price. 5.2.1.4 Brand Name→ CityCell has a renowned brand name in the telecommunication sector as they are pioneer in introducing cellular technology in Bangladesh. 5.2.1.5 Packaging → As they are service oriented company packaging is not a vital thing, but still CityCell try their best to give the best package for the handsets.

5.2.1.6 Services→ As far as the service is concern CityCell tries their level best to achieve customer satisfaction. CityCell provides the following maintained exclusive and superior services for their target customers. CityCell opens its customer care center 7 days a week, 365 days a year country wide. Sunday-Thursday (9:00 am – 5:30 pm) Friday (3:00 pm – 6:00 pm) Saturday (9:00 am – 5:30 pm) Government Holiday (9:00 am – 3:00 pm) CityCell introduced online self care. Any CityCell subscriber can logon to www.citycell.com/onlineselfcare and can check their last bills status, bill history, due bill, advanced bill and so on. It’s just an innovative and advanced technology for the customer. CityCell have automated customer response toll free dialing numbers. CityCell subscriber can dial 120 and can check their last bills status, bill history, due bill, advanced bill and so on. CityCell have automated queue system on their customer care centre. CityCell provides 24 hours call centers *121 for CityCell subscribers & *011- 121121 for any. 5.2.1.7 Features → SMS (short messaging service) CityCell provides SMS for their customers. CityCell customer can send and receive SMS to any of the CityCell customers in no time. This is a technology that can stay you in touch with a figure tip. Recently CityCell make alliance with Grameen Phone. And they gave both of their customers an opportunity to send and receive SMS. This is the first time that subscribers make this type of alliance to send and receive SMS between them in Bangladesh. E-Mail CityCell offers e-mail massaging for their customers without using the WAP and by only a figure tips. They use the advanced CDMA technology to build this e-mail massaging system, which provides their customers to send and receive e-mails through their CityCell handset. CityCell provide their customers a unique e-mail ID which can be verified such as 011××××××@sms.citycell.com Voice mail service

Voice mail service is an innovative way for cellular phone users by which they can hold up their voice massages and can also get voice massages while they are not available. Cash Card Under this assumption CityCell first introduced cash card for post paid customers to pay their bills. As our lives become increasingly busy, it is sometimes hard to keep track of all the administrative things such as phone bill payments that customer have to take care of on a weekly or monthly bases. CityCell now makes it easy for their customers to pay their phone bill with the CityCell cash card. CityCell cash card is a novel and innovative way for the post paid customers to pay their bills over telephone. The maximum CityCell customer need is a cash card and their CityCell phone and they can pay their phone bill from anywhere, anytime. No more standing in the queue or trying to beat the operating hours of banks or service centers and customer can use the cash card 12 months a year , 24 hours a day , 7 days a week . Value added services CityCell is once again the first to bring to its Customers Location Based Service (LBS). LBS enable our customers to be connected to essential services. Irrespective of their location. With LBS you are never too far from getting help in times of your need. If you are facing car trouble, be rest assured, LBS will connect you to the nearest auto workshop by just dialing the three digit number. Customers can store these numbers in their phone book or dial the three digit numbers prefixed with a * in order to avail the services. () Sports News – 123 () Local & International News – 122 () Airways Schedule – 124 () Home Delivery Food - *101 (The nearest one) () Ambulance – 505 () Prayer Schedule – 786 () Call Center – 121 () Police Station - *999 () Fire Service - *911 () Train Schedule – 125

5.2.1.8 Warranty → CityCell has a 6 months warranty procedure for their sets and one year maintenance warranty. 5.2.1.9 Returns → CityCell tried to replace any set that face unexpected defects within 6 months but sometimes it took more time. But they are very much concern about their maintenance warranty as a matter of fact they tried to provide it as soon as possible. 5.2.2 Price: 5.2.2.1List price → Postpaid Brand Name Ericsson LG Motorola Audiovox Samsung TCL Nokia Nokia ZTE Pre-paid Brand Name Ericsson LG Motorola Audiovox Samsung TCL Nokia Nokia ZTE Model Number A1228c V111 182c CDM135 SCH-N213 1828 3585 8280 C700 Price (Taka) 6,999 7,999 8,999 8,999 10,800 11,999 13,999 14,999 20,250 Model Number A1228c V111 182c CDM135 SCH-N213 1828 3585 8280 C700 Price (Taka) 5,999 6,999 7,999 7,999 9,800 10,999 12,999 13,999 19,250

Alaap Prepaid cards are available:

300, 400, 600, 1200, 2400 5.2.2.2 Discounts → CityCell currently offers 50% discount on any post paid and pre paid connection plus set. 5.2.2.3 Allowances → CityCell does not offer any allowances to their distributors & dealers. But offers commission on every set sold. They get, Distributors – Tk. 995 Dealers – Tk. 887 5.2.3 Promotion: 5.2.3.1 Advertising → CityCell gives advertisement in following non personal communications channels: Newspaper CityCell provides all sort advertisement in newspaper to create awareness such as new package launch. They also confer discount offers, services, features etc. in this communication channel. Television Currently CityCell is going for little bit advertisement in broadcast media which is known as television. They use emotional appeal to convince their target customer by doing celebrity marketing. They also use their brand name in news headlines (ntv channel). Billboards CityCell hired some billboards to advertise in important areas of six major divisional cities. Island Dividers CityCell uses island dividers to acknowledge about their features. T-signs CityCell also uses this non communication channel create awareness. Posters & Stickers

There are different posters of CityCell which is based on celebrity marketing with ‘Novel & Tisha’. They also provide some stickers to their distributors and dealers to support their core competence. 5.2.3.2 Personal Selling → They exercise highly personalized direct mailing procedure towards their corporate client. This is the only personal selling tool for CityCell. 5.2.3.3 Sales Promotion → In recent time period, they proposed ‘buy one, get one’ for all packages towards their target customer. 5.2.3.4 Public relation → Public relation is very much believable and believable. They do the following item in this promotional tool: I. Usually they go for press conference once or twice in a month. II. CityCell honor S.S.C. and H.S.C. scholars every year. III. CityCell arranges educational programs (like Medha Bikash) in ntv. 5.2.3.5 Direct Marketing → CityCell have a way for their customers to buy directly from their Zonal offices which they termed as Customer Care Centre. 5.2.4 Place: 5.2.4.1 Channels → CityCell sells their products & services through distributors and dealers countrywide. Dhaka Zone (Dealer/Agent) Chittagong Zone (Dealer/Agent) Sylhet Zone (Dealer / Agent) From those tables we found that there are 79 dealers. But in 2004 there are 89 dealers. We can’t find the name of other 10 dealers as the source is based upon 2003. 5.2.4.2 Coverage → CityCell covers most of the major cities and towns by expanding their network. They have also expanded their network in the rural villages of Bangladesh. CityCell also planned to expand their network and capture 85% of Bangladesh under their coverage. 5.2.4.3 Locations → Action Program 6.1 suggestion

We have selected some strategies on the basis of City Cell’s objectives, mission, vision, their weakness and also to improve their current marketing mix. These are listed below: 6.1.1 Advertisement: CityCell can shift to new media such as foreign channels as consumer perception among with the culture is changing. For making excellence advertisement they can hire new advertisement agencies. 6.1.2 Personal selling: CityCell can appoint skillful person who are experienced in personal communication to get in touch with their target corporate user wisely, because they can generate higher revenue from this segment. 6.1.3 Public relation: CityCell currently sponsor a short amount of money in the field of sport. They can sponsor big tournaments of peoples favorite sport such as cricket, football etc. This work can be carried out by marketing department. 6.1.4 Services: CityCell can provide best services towards their customers to make them loyal. For this they have to train their employees and can arrange conference with dealers and distributors to know which services customers are looking for. 6.1.5 Features: To increase their market share they can benchmark on industries market leader for more value added features. 6.1.6 Channels: CityCell provides more commission to their distributors in comparison wit their dealers, but the fact is most of their selling provided by their dealers. So, CityCell can give extra benefits to their dealers so that they can motivated to do further beneficial effort towards the progress of CityCell. 6.1.7 Operational objective: As CityCell is the market challenger; they should set operational objectives to support their marketing mix more effectively and efficiently. 6.1.8 Segmentation:

CityCell currently targeting fair segments but they can identify new segment as they have to capability to cope with that. They should target more segments as far as they can by reducing cost. 6.1.9 Relationship marketing: CityCell can keep good relation with their corporate clients, employees to strengthen their value chain and also with their dealers. 6.1.10 Research and development: We have suggested earlier that CityCell can identify new segments. But to identify which segment is more attractive they have to do R&D. 6.1.11 Product Development: CityCell can lunch new packages with new and innovative features. They should add some features that can make their package more attractive that their target customers will desperate to buy it. 6.1.12 Horizontal integration: CityCell can do horizontal integration for acquisition weak competitors for further technological advantage. 6.1.13 Strategic alliance: CityCell currently having a strategic alliance with Grameen phone that facilitate both CityCell and Grameen Phone user. They can do more alliances with Grameen phone in features, connectivity, etc to facilitate their customers. 6.1.14 Marketing intelligence system and contingency plan: CityCell can set up marketing intelligence system to sought out opportunities and prepare contingency plan for potential threats. 6.1.15 Defense Strategies: CityCell can set mobile and counter defense strategy against their market leader (Grameen Phone) 6.1.16 Attack strategies: CityCell can take flank attack strategies against Aktel weaker areas. As CityCell maintains overall cost leadership they can take Guerrilla attack strategy in terms of price and operating cost.

6.1.17 Customer satisfaction survey: As CityCell is in service oriented business, satisfaction is a concerning matter for them. CityCell can do customer satisfaction survey to know whether there customers are satisfied or not. 6.1.18 Win back strategy: CityCell can do Accountable marketing with their inactive or ex-customers. So that they can make them understand about the new features and low price of their packages. Budget 7.1 promotional 7.1.1 Advertisement (Projected) Broadcast Media (new) (yearly) Time 20 seconds Cost for 20 seconds 10,000/= How often Every day Total cost 10,000 * 365 = 36,50,000/=

Newspaper (yearly) Prothom alo Zugantor 8 times in a month 8 times in a month 2,000/= (per day) 1,000/= (per day) 2,000 * 8 * 12 = 1,92,000/= 1,000 * 8 * 12 = 96,000/=

Total cost = 1,92,000 + 96,000 = 2,88,000/= Direct Mail (yearly) Internet bill per month is 5,000/= Total cost = 5,000 * 12 = 60,000/= Fig : Advertisement (Yearly) 7.1.2 Personal selling (Projected) (yearly) Month salary of each person is 25,000/= Total cost for 3 persons = 25,000 * 12 * 3= 9,00,000/=

7.1.3 Sales promotion (Projected) (yearly) Distributors Sale 20 set per month Commission per set = 50/= Total cost = 20 * 50 * 12 = 12,000/= Dealers Sale 50 set per month Commission per set = 60/= Total cost = 50 * 60 * 12 = 36,000/= Customer service stuff Sale 8 set per month Commission per set = 20/= Total cost = 8 * 20 * 12 = 1,920/=

7.1.4 Public relation (Projected) (yearly) → Sponsor in corporate league (Cricket) = 50,00,000/= (yearly) → Sponsor in premier league (football) = 20,00,000/= (yearly) → Stall in International Trade Faire = 2,00,000/= (yearly) Total cost = 50,00,000 + 20,00,000 + 2,00,000 = 72,00,000/= Promotional tools Advertisement Personal selling Sales promotion Public relation Total promotional cost 39,98,000/= 9,00,000/= 49,920/= 72,00,000/=1,21,97,920/= (yearly)

Fig : Total promotional budget (yearly) 7.2 Employee training (Projected) (yearly) Need two training program every year for 50 employees & cost for each program is 60,000/= Total cost = 60,000 * 2 = 1,20,000/= 7.3 Research & Development (Projected) (yearly) Need 5 person Salary of each person is 30,000/= Total cost = 30,000 * 5 * 12 = 18,00,000/=

7.4 Marketing Intelligence System (Projected) (yearly) Each person salary is 15,000/= and need 2 persons. Total cost = 15,000 * 12 * 2 = 3,60,000/= 7.5 Customer Satisfaction Survey (Projected) (yearly) Need to employ 50 person @ 2,000/= per program Yearly program = 2 Total cost = 50 * 2,000 * 2 = 2,00,000/= 7.6 Win Back Strategies (yearly) FREE 7.7 Estimated Budget (Projected) (yearly) Area Promotion Employee Training Research & Development Customer Satisfaction Survey Marketing Intelligence System Others Total cost Amount (Taka) 1,21,97,920/= 1,20,000/= 18,00,000/= 2,00,000/= 3,60,000/= 5,00,000/= 1,51,77,920/= Fig : Total Budget (yearly) Income statement (Current): Particular Sales Amount (taka)

50,00,00,000/= 25,00,00,000/=

(-) Total sales of cost

Profit before tax

25,00,00,000/=

(-) Tax (9% appx.) Net Profit

2,25,00,000/=

22,75,00,000/=

Income statement (Projected): Particular Amount (taka) 55,00,00,000/=

Sales + increase(new)

(-) Total sales of cost + increase(new) 26,51,77,920/=

Profit before tax (-) Tax (9% appx.) Net Profit

28,48,22,080/= 2,56,33,987/=

25,91,88,093/=

Measurement Every company needs to measure, monitor, control and contingency their progress in different sectors that they have planned to advance. They tried their level best to keep an eye on every program that they have planned to progress. As far as CityCell is concern we have sort out some action programs that they can do in near future in order to make further progress. Regarding from our action programs we come across some matters that CityCell needs to measure, monitor, control and contingence in different areas to accomplish those action programs. Sales information: CityCell should consistently observe their sales and collection period for each and every package at the end of every month. Market share: Market share is a vital element for every company in relation to their competitors. According to us, CityCell should measure their market share whether it is increasing or decreasing with in every three months. For this they have to go to the ‘Chamber of Commerce and Industry’ to know the current situation of their market share in comparison to their competitors’.

Net income: We know at present each and every company tried to set their vision, mission and objective to satisfy their target customer by delivering superior value. The end result of all these things is profit. Without profit no company can continue their businesses. So, profit is must in every business. CityCell should evaluate their profit at the end of every month. Services: As CityCell is a customer oriented business. Customer satisfaction is must for them. It is not wise to develop services that vary from division to division. They should provide similar sort of service centers and the service procedure in every division. They can appoint ghost shopper to know how their service matters to their customers. Advertisement: As CityCell provides shopping products that means they are in oligopoly competition. They have to consistently provide advertisement in different media to acknowledge their features for their given target market. They should monitor whether their advertisement are capable to increase share of mind and also share of heart of their target customers. Appendix References 01. www.citycell.com 02. www.grameenphone.com 03. www.aktel.com 04. Last Years reports done by senior students on Advertising Plan (MKT-340) Bibliography 01. Marketing Management, Philip Kotler, millennium edition 02. Principles of Marketing, Kotler & Armstrong, 9th edition 03. Corporate Finance, Ross, Westerfield & Jaffe, 6th edition 04. Strategic Marketing, Graeme Drummond & John Ensor, 2nd Edition,