Table of content

Serial Page
Topics Name
No. No.
1 Executive Summary

2 Historical Background of
GrameenPhone
3 Company Profile
4 Theoretical Considerations
5 Marketing Strategies
6 Segmentation
7 Target Marketing
8 Positioning
9 Conclusion
10 Reference
Executive Summery
Historical Background of GrameenPhone
GrameenPhone is a GSM-based cellular operator in Bangladesh.
GrameenPhone started operations on March 26, 1997. It is partly
owned by Telenor (62%) and Grameen Telecom (38%).GrameenPhone
is the largest mobile phone company in Bangladesh with 20.84 million
customers as of August, 2008. It is also one the fastest growing cellular
telephone network in Bangladesh. At the end of 2005, it had about
3500 base stations around the country with plans to add about 500 in
the following six months. GrameenPhone's stated goal is to provide
cost-effective and quality cellular services in Bangladesh. On the 16th
of November, 2006 GP formally changed its logo to match its parent
company Telenor's logo. According to GP the new logo symbolizes
trust, reliability, quality and constant progress. The name
GrameenPhone was kept as part of the new identity because the name
Grameenphone carries with it all of the heritage, success and values of
the companies past, added the then CEO of Grameenphone Erik Aas.
Company Profile:

Type Limited
Founded 1997
Headquarters Celebration Point, Road # 113 A, Plot 3
& 5, Gulshan, Dhaka, Bangladesh
Key people Oddvar Hesjedal, CEO
Industry Telecommunication
Products Telephony, EDGE, GSM
Revenue 700Million USD[1]
Net income ▲ 6,403.8 Million Taka[2]
Employees 5052[3]
Website www.grameenphone
Theoretical Considerations

Marketing Strategies: The strategic plan defines the company’s

overall mission and objectives and hopes to achieve company’s
objectives. Through market segmentation, targeting and positioning
the company decides which customers it will serve and how. The
company also designs a marketing mix made up of factors under its
control product, price, place, promotion.

Strategy of GrameenPhone
GrameenPhone’s basic strategy is coverage of both urban and rural
areas. In contrast to the “island” strategy followed by some
companies, which involves connecting isolated islands of urban
coverage through transmission links, GrameenPhone builds continuous
coverage, cell after cell. While the intensity of coverage may vary from
area to area depending on market conditions, the basic strategy of
cell-to-cell coverage is applied throughout GrameenPhone’s network.

In the report, we are going to focus of Grameenphone is to segment,

target the potential customers and to position of their profit oriented
products. The relevant information is given below:

A) Market Segmentation:
The marketing concept calls for understanding customers and
satisfying their needs better than the competition. But different
customers have different needs, and it rarely is possible to satisfy all
customers by treating them alike. Market segmentation is the
identification of portions of the market that are different from one
another. Segmentation allows the firm to better satisfy the needs of its
potential customers.
1. Clearer understanding of the needs and wants of selected
customer groups.
2. More effective positioning.
3. Greater precision in selecting promotional vehicles and
techniques

Bases for Segmentation:

Consumer markets can be segmented on the following customer
characteristics.
1. Geographic
2. Demographic
3. Psychographic
4. Behavioral

1. Geographic
1.1 Network:
Grameenphone have the widest network coverage in the country. It
has changed the communication structure of the country and it can be
compared with communication revolution. It is the first company in the
country that has brought the mobile service to the mass level. GP's
network is very robust and undoubtedly the best in the country. But it
suffers from severe network congestion during festivals and
celebrations when people badly need smooth communication. This is
because, a big number of people moves to rural side during festivals,
which is very difficult to cater from any operator's perspective. As a
result, people face problem during those times. But it is very difficult to
ensure smooth network in rural areas considering only 10-15 days’ (out
of 365 days) additional pressure derived from non-regular members
(visitors) of that area. This is a worldwide problem for the Telco
operators. GP has the highest number of base stations throughout the
country. GP covers the most. GP's customer service is one of the
cheapest among all in the country. It is a 24/7 customer service.
Customer waiting time in queue is also minimum in comparison to
industry standard. GP Customer Service caters highest numbers of
customers’ everyday regardless any industry in the country.

2. Demographic
2.1 Age: ?????????????????????

Djuice: a youth based mobile to mobile connectivity within

Bangladesh. Djuice was launched in Bangladesh by Grameenphone on
the 14th of April, 2005 i.e. the Bengali New Year. Ever since the launch
djuice has seen a big warm response from the crowd. Within two years
djuice Bangladesh had enlisted around 2 million subscribers. On the
14th of April, 2007 djuice Bangladesh shed its old skin to put up its
new identity which a part of the worldwide re-branding process of
djuice.

Smile Package: Smile package which is a mobile to mobile

connectivity within Bangladesh. It is the most popular product

2.2 Occupation: ????????????????????????

Public call office (PCO): a package exclusively designed for people

operating public phone booths who basically need low call rate.
Business Solution: a complete, quality business communications
service designed especially for the business community in Bangladesh.
At office or on the move – stay connected through Business Solutions.

3. Psychographic
3.1 Social class, Lifestyle, Personality: X-plore product Nationwide
and international mobile and landline connectivity. Grameenphone
introduced this premium service for the first time in Bangladesh and
now provide International Roaming service to its own subscribers
traveling abroad as well as to foreign operators’ subscribers traveling
in Bangladesh. For the first time in Bangladesh in July 2006,
Grameenphone launched Roaming Services (both GSM and
EDGE/GPRS) with CAMEL Phase II for Pre paid In-bound subscribers.
Grameenphone has unique ‘One to One’ relationship with all its
International Roaming partner operators. As of October 2007,
GrameenPhone has 325 GSM partner operators in 117 countries in 6
continents and 90 EDGE/GPRS partner operators in 46 countries. This
offer is popular for socially upper class that can bear its expenses.

4. Behavioral
4.1 Occasion: Greemenphone provide various offer for special
occasions, like- Eid Spesial, Grameenphone brings back the popular
Nokia 1200 handset, bundled with GP prepaid connections, for its
prepaid subscribers at an amazingly affordable price. With the GP-
Nokia Eid campaign launch on September 15, 2008, anyone can stay
connected with the largest prepaid subscriber base of the country, at
as low as BDT 2,350. The bundle offer consists of a Nokia 1200
handset at BDT 2,350 and a smile M2M/smile with BTCL
connectivity/djuice/Business Solutions prepaid connection.
4.2 Loyalty Status: Grameenphone connection is not just simply a
mobile connection; “Thank you” bonus is the beginning of a new
relationship. Since the start of our operations in 1997, they believe
that a special relationship is formed with each new connection – a
time-nurtured attachment that deepens with every call you make and
receive. “Thank you” is the way of expressing their gratitude to their
loyal customers.

4.3 Un-loyalty Status: GrameenPhone inspire their customers who

are not loyal, by offering bonus talk time when they use again their un-
used GP-sim.

B) Target Marketing:
Market segmentation reveals the firm’s market segment opportunities.
The GrameenPhone evaluated the various segments and decided to
expand their in whole Bangladesh. They separate their target market
because their customers have unique needs & wants.

1. Undifferentiated Marketing

GrameenPhone has merged their pre-paid packages into 2 Smile

Prepaid packages SMILE (Mobile to Mobile) and SMILE (with BTTB
connectivity). All Easy clients will be updated to SMILE (Mobile to
Mobile). And all Easy Gold clients will be updated to SMILE (with BTTB
connectivity).

2. Differentiated Marketing
GrameenPhone also follow differentiated marketing strategy. They
offers different product for different segments based on different age,
occupation, wants etc.

Djuice: a youth based mobile to mobile connectivity within

Bangladesh.

Public call office (PCO): a package exclusively designed for people

operating public phone booths who basically need low call rate.

Business Solution: a complete, quality business communications

service designed especially for the business community in Bangladesh.
At office or on the move – stay connected through Business Solutions.
X-plore product Nationwide and international mobile and landline
connectivity. GrameenPhone introduced this premium service for the
first time in Bangladesh and now provides International Roaming
service to its own subscribers traveling abroad as well as to foreign
operators’ subscribers traveling in Bangladesh. For the first time in
Bangladesh in July 2006, GrameenPhone launched Roaming Services
(both GSM and EDGE/GPRS) with CAMEL Phase II for Pre paid In-bound
subscribers. GrameenPhone has unique ‘One to One’ relationship
with all its International Roaming partner operators.

C) Positioning Strategy

By creating product, service, channel, people & image differentiation

GrameenPhone reach the consumer touch point more effectively &
efficiently in comparing with their competitors in the highly
competitive telecommunication sector.

1. Product Differentiation:
Network (best, quality): GrameenPhone has the largest network
with the widest coverage around the country, bringing 98 percent of
the population under the coverage of its network. The entire
GrameenPhone network is also EDGE/GPRS enabled, allowing GP
subscribers to access the Internet from anywhere within its coverage
area. The 10,000 Base Stations are located in about 5,700 sites around
the country. The company has so far invested more than BDT 10,700
crore (USD 1.6 billion) to build the network infrastructure since its
inception in 1997. It has invested over BDT 3,100 crore (USD 450
million) during the first three quarters of the current year while BDT
2,100 crore (USD 310 million) was invested in 2006 alone.
GrameenPhone is implementing an aggressive roll-out program by
installing new network elements with an emphasis on maintaining
quality service. A number of steps are being taken to identify the
problems spots in the network in order to constantly improve quality.
Special efforts are being taken to constantly monitor and ensure
network quality in the urban areas. In Dhaka and other major cities in-
building coverage solutions and microcells have been deployed to
provide improved coverage in important high-rise buildings and busy
street junctions.

2. Service Differentiation:
Business Solutions is a complete, quality business communications
service from GrameenPhone – designed especially for the business
community in Bangladesh. Their Business Solutions teams are here to
help provide their customers with customized telecommunications
solutions through consultation with their customers.
Messaging Services
GrameenPhone have various messaging services allow the customers
ways to communicate smarter, faster, more efficiently and more cost-
effectively on the go.

SMS (Short Message Service):

Fast and affordable messaging through SMS. Send a SMS to any mobile
phone in Bangladesh and to more than 115 countries with their
international SMS service.

Voice SMS:
Save time and personalize message through a voice SMS. This service
provides the flexibility to record it up to 120 seconds of audio –

MMS (multimedia messaging):

The MMS service provides to take pictures customize it with animation,
music, video clips and send it across the globe within seconds.

Cell e-mail:
Send emails without a computer. With cell e-mail, Customers have the
facilities to e-mail any GP number through an SMS and email any PC
across the globe.

SMS Banking:
Enjoy hassle-free account updates from renowned banks like Standard
Chartered Bank, BRAC Bank, Bank Asia, etc.
Customer Services
GP strive to take care of their customers all telecommunications needs.
Key Account Managers and Customer Service Managers are assigned
to provide prioritized service to Business Solutions subscriber’s right
from the beginning of the relationship.

Priority Service
GP believe in the importance of human touch in the business world. As
they step into third year of providing innovative communication
solutions, Business Solutions aims to provide enhanced priority
services.

Prioritized Hotline 121

Enjoy prioritized customer service by simply dialing 121. Dedicated
customers care managers are available round-the-clock, 24 hours a
day and 7 days a week only to serve. Business Solutions postpaid
subscribers can call 121 absolutely free of cost.

Value Added Services

Take customer business to new heights. Business Solutions pioneers in
introducing state of the art Value Added Service to help.

Missed Call Alert

Missed Call Alert and get SMS notification of the attempted call when
phone was off. To subscribe the service, type on and send to 6222.

Stock Information
The latest updates of the Dhaka and Chittagong Stock Exchange are
now in consumer palm. To avail this service, go to GP WORLD
(wap.gpworld.com), then Business City, and download the Bull
application.

4. Channel Differentiation
GP gain competitive advantage through the way they design their
channels coverage expertise & performance.

3. People Differentiation:
Almost half the total number of employees of GrameenPhone Ltd.
today (Tuesday), participated in the company's biggest customer care
program to date.
"This customer service campaign follows up on the "Stay Close"
promise from GrameenPhone. As a caring company, GrameenPhone
values its subscribers, stands by them and takes care of them when
they need help," explained GrameenPhone CEO Anders Jensen.
Management Team led by, over 2000 employees, representing most of
the functional divisions and all the regional offices of GrameenPhone,
spent the day interacting with the customers in 124 popular local area
markets and important public places across the country. The purpose
was to interact with the customers, help them in solving their mobile
phone related queries, and demonstrate Grameenphone's commitment
as a helpful and customer-oriented company.

5. Image Differentiation
GrameenPhone logo differentiates from the other companies. For that
reason customer easily identify them in the market, which is another
effective competitive advantages for GrameenPhone.

Positioning Statement:
Company and Brand Positioning should be summed up in a positioning
statement. GrameenPhone positioning statement is “Stay Close”
which explain that customer can easily express their emotion with their
close relatives & friends through using GrameenPhone.
Conclusion

The advent of cellular technology in Bangladesh has brought immense

change in the field of communication. Since its inception in 1997,
GrameenPhone has done well to enhance its customer loyalty
operating as a market challenger in this oligopoly industry.
GrameenPhone is one of the largest cellular companies in Bangladesh.
Their performance and quality of the service mainly depends on their
experiences and efficiency. GrameenPhone believes in service, a
service that leads to good business and good development. Telephony
helps people work together, raising their productivity. This gain in
productivity is development, which in turn enables them to afford a
telephone service, generating a good business. Thus development and
business go together. It has segmented the market based on certain
clustered preferences deploying multi-stage segmentation approach to
meet individual needs of the customers. Launching of its new services
would also close its existing service gaps to a great extent ensuring
satisfaction and loyalty.
In our report we try to present the segmentation, target marketing and
positioning strategy of GrameenPhone limited company and suggest
some recommendations based on the marketing procedure.

Reference
A. Philip Kotler & Gary Armstrong, Principles of Marketing,
Eleventh Edition
B. Official web site of GrameenPhone- www.grameenphone.com