Marketing Plan of Grameen Phone

1. Page | 1
Chapter-01
Introduction

2. Page | 2
1.1 Introduction
GrameenPhone Ltd. (GP) is the market leader in the mobile telecommunication industry of
Bangladesh. The address of its Head Office is: GP HOUSE. Bashundhara, Baridhara Dhaka ‐
1229, Bangladesh. GP is a joint venture between Bangladesh and Norway. Major shareholders
were Telenor (68%) and Grameen Telecom (32%). In 2008 it went public. Presently the
shareholder status of the company is Telenor (61.2%), Grameen Telecom (28.8%), Institute
(5%), and Public (5%). Telenor is the state owned telecommunication company of Norway. It
has operations in different countries of the world. On the other hand, Grameen Telecom is the
sister concern of Grameen Bank, one of the biggest Non Government Organizations (NGO) of
Bangladesh. Principally GP was established in 1995. But due to government policy, GP did not
permission to start their operation. The license agreement was signed on October 31, 1996.
They started the hard work of the developing the infrastructure facilities in the country. GP did
not take much time to start its operations. The commercial launch was on March 26, 1997.
Bangladesh is a developing country. Per capita income here is very low. Very few people
have access to telecommunication. In this situation GP started their operation here. GP’s aim
was to develop one GSM cellular mobile communications network in Bangladesh in
competition with two other GSM operators and one AMPS (Advanced Mobile Phone System)
operator. GP aims to provide the best possible technical quality, customer service, and coverage
also in the rural areas at the most favorable prices, to as many customers possible in
Bangladesh. GP has a dynamic management composed of business people with a profile drive,
prepared to take calculative risk. The shareholders of the company are stable, established
companies with solid international reputation. They have already made approximately $125
million investment to GP and will reinvest their profit share to GP. The GrameenPhone network
is designed with latest computer assisted design technology. GP has reached its break‐even
point in the year 2000, in the fourth year of its operation. The company made its first net profit
of $ 3.7 million during the year ending in December 2000. GrameenPhone is the leading
Cellular Net Provider in Bangladesh. GrameenPhone started their business approximately 11
years. Since then GrameenPhone has been operating in the market for a long time. During this
time GrameenPhone went for different types of mergers as well as acquisitions. They gained
success from the very beginning of their operation and were capable enough to hold the

3. Page | 3
success year after year. GrameenPhone main competitors are AKTEL, BANGLA LINK,
and CITYCELL WARID TELECOM & TELETALK. One of the strongest sides of
GrameenPhone is its customer’s service and relationship. GrameenPhone was awarded license
to operate as a mobile telecommunication service provider in Bangladesh on 28th
of November
1996. It officially launched its network on 26th
of March 1997 and went into commercial
operation on 15th
of April
1.2 Company profile
Grameen Phone is the number 1 mobile operator with 44% market share (September, 2010).
Number of subscribers stands at 2865 mn (Sep'10). For 2010 up to end 03, total revenues were
SOT 55.1 ho versus R0T48.6 hr for same comparable period in 2009, whereas 525 for 2010 up
to end 0.3 was SOT 523 against BDT 537 for the same period in 2009. Initial capex cycle of
geographical coverage build Out complete. Subscriber churn levels at 1% per month in 2010;
amongst the lowest in emerging Asian markets. One of the largest ISPs in Bangladesh with
approximately 4.5mn active subscribers. Its network covers over 99.14% of the population in all
64 districts of Bangladesh and 88.84% of the total land area, and the network infrastructure
included around 114,000 TRXs in more than 7,200 base stations. Grameenphone operates on
both OSM 900 & 1800 bands with a bandwidth of 22MHz. The recent allocation of 7,4M1-lz to
OP in addition to the 14.6MHz it already has will help to decrease the pressure on GPs network.
OP has 11300 base stations in over 6500 locations across Bangladesh.
1.3 Background of the Company
Name of the company: “Grameen Phone” is extensively documented as GP.
Nature of business: With more than 27 million subscribers, Grameen phone is the largest
cellular operator in the country. It is a joint venture enterprise between Telenor and Grameen
Telecom Corporation, a non-profit sister concern of the internationally acclaimed
microfinance organization and community development bank Grameen Bank. Telenor, the
largest telecommunications company in Norway, owns 55.8% shares of Grameen phone,
Grameen Telecom owns 34.2% and the remaining 10% is publicly held.

4. Page | 4
1.4 objectives of the study
The primary purpose of the report is the fulfillment of the course requirement. The main
objectives of the report are as follows:
To fulfill the partial requirement of the “Business Communication” course offered in
BBA program.
To explore advantages provides by the skill of Business Communication and
contribution to the profitably of the organizations as well as economy of Bangladesh.
It will also enable me to improve my skill on report writing. As corporate executive put
great value on report writing as an important element in management success, this part
of the course will prepare me to face the future challenges of corporate world.
To analyze the benefit of applying the skill of communication in organizations.
To analyze how GP build up their Communication System.
1.5 Scope of the Study
This report renders a close analytical look at the subscribers’ service awareness and usages
with a closer to view subscribers’ expected Medias to learn GP services. At the same time
this report will help to gather knowledge about the services provided by GrameenPhone.

5. Page | 5
Chapter-02
Conceptual Issues

6. Page | 6
2.1 Overview
Grameen Phone (GP) started operations in 1997. In 2009, GP offered 69,439,400 ordinary
shares at BDT 10 (US$. 014) each, in addition to a BDT 60 (US$ 0.871 premium, totaling BDT
4.86 bn (US$ 70.lSmn) & got Listed on OSE & CSE. Quickly after its inception in 1997, GP
established itself as the leading mobile operator in the country by providing superior coverage
and better network quality perception than its competitors. In the last 4 years, market dominance
of GP has slowly eroded through intense competition, falling from 63% in 2005 to about 44%
(September 2010). GP's AR?U has teen constantly declining, as mobile voice tariffs continue to
fall and as greater numbers of subscribers come from lower income groups. From USD 5.4 in
Q1'07, the ARPU has come down to USD 3.03 in 03'10 (02 2010 USD 3.47). GP was the first
mobile operator to introduce prepaid mobile connections in Bangladesh in 1999. Apart from
internet services through EDGE, Crameenphone is also the only medium through which Cell
Bazaar operates a service where people can buy and sell products through a mobile. It also
operates a telemedicine service called Health line, It provides a host of other VAS services
including ringtones, welcome tunes, SMS-MMS, instant messaging, sports-news updates, stock
market updates, electronic ticketing service etc. . However, to turn its business GrameenPhone
divides its communication process into three sectors.
2.2 Evolution and History
November 28th 1996
GrameenPhone was offered a cellular license in Bangladesh by the Ministry of Posts and
Telecommunications, Government of the People‟s Republic of Bangladesh.
March 26th1997
GrameenPhone launched its service on the Independence Day of Bangladesh.
November 5th2006
After almost 10 years of operation, GrameenPhone has over 10 million subscribers.
September 20th2007

7. Page | 7
GrameenPhone announces 15 million subscribers.
November 30th 2009
After almost 10 years of operation, Grameenphone has over 10 million subscribers
Now Grameenphone is now the leading telecommunications service provider in the
country with more than 27 million subscribers as of October 2010.Presently, there are about 60
million telephone users in the country, of which, a little over one million are fixed-phone users
and the rest mobile phone subscribers. Starting its operations on March 26, 1997, the
Independence Day of Bangladesh, Grameenphone has come a long way. It is a joint venture
enterprise between Telenor (55.8%), the largest telecommunications service provider in
Norway with mobile phone operations in 12 other countries, and Grameen Telecom
Corporation (34.2% ), a non-profit sister concern of the internationally acclaimed micro-
credit pioneer Grameen Bank. The other 10% shares belong to 10% to general retail and
institutional investors. Over the years, Grameenphone has always been a pioneer in
introducing new products and services in the local market. GP was the first company to
introduce GSM technology in Bangladesh when it launched its services in March
1997.The technological know-how and managerial expertise of Telenor has been
instrumental in setting up such an internationalstandard mobile phone operation in
Bangladesh. Being one of the pioneers in developing the GSM service in Europe, Telenor
has also helped to transfer this knowledge to the local employees over the years.
2.3 GP Vision
Grameenphone exist to help their customers get the full benefit of communications
services in their daily lives. The one and only vision of them is “We Are Here to
Help”
2.4 GP Mission
Grameenphone is the only reliable means of communication that brings the people of
Bangladesh close to their loved ones and important things in their lives through
unparalleled network, relevant innovations & services.

8. Page | 8
2.5 Objective
The objectives of this report are:
• To determine the GrameenPhone subscribers services awareness status and services
usages.
• To recognize the popularity of the VAS and determine the frequency of its usage.
• To identify the efficient and effective Medias to build services awareness among
GrameenPhone’s subscribers.

9. Page | 9
Chapter-03
Database

10. Page | 10
3.1 Methodology
I would like to make sure that I have all the necessary data required to come up with effective
result. Therefore, I have combined both primary and secondary data collection method. All data
related to this study is attached with the appendix.
A. Primary source of data:
Interview of customer manager working at GP
B. Secondary source of data:
Internet
Newspaper archive
Annual Report of GP 2010
3.2 Marketing Strategy
Setting Price
Grameen phone sets its products prices by closely evaluating the following factors:
i. per sim acquisition: depending upon the investment GP has put into the product
and how much they want in return, this depends on the rate at which they want/
need to pay back their loans.
ii. Market demand: as GP’s products have competitive advantage in the market, it
is therefore at very high demand thus this allows GP to rule the market as
monopolistic competitor.
iii. Competitor’s price: As GP is a part of a very vast competition, they do have to
price their products by regarding their competitor’s prices so as to please their
customers more.
iv. Economic condition: Product pricing depends a lot on the country’s economic
condition as without a stable economy their products will not sell as expected
thus prices will then have to be reduced.

11. Page | 11
v. Seasonal Fluctuations: GP offers some products and services depending on the
season. This consideration of seasonal fluctuations helps GP offer discounts and
other offers during festivals which would please their customers further.
vi. Desired image: GP has the image of Bangladesh’s most high end
telecommunication service provider. This is because they have maintained higher
price which is contributed to their very strong vast network service and unique
products which only GP provides or are the first to provide.
3.3 Target market
GP’s telecommunication service targets the entire population of Bangladesh. Initially their
market consisted of urbanities only, as during those times urbanities were the only ones to use
wireless telecommunication system. But now with the expansion of education and technology
everyone is ready to use GP’s services. Their present target market is the rural area people who
form the almost untouched market a huge number of potential clients in this sector.
3.4 Data Collection and Sources of Data
Primary data for this report has been collected through telephone questionnaire. Here the total
number of GrameenPhone subscribers is considered the population of the research and out of
these total subscribers randomly picked 55 subscribers will be the sample. For this purpose a
questionnaire was developed encompassing the objectives of the reports and the sample.
Printed reports available at CMD, annual reports, leaflets, brochures and the official web site
were the sources of secondary data.

12. Page | 12
Chapter-04
Finding of the Study

13. Page | 13
4.1 Findings and Analysis
Communication method with customers: After fourteen years of operation, Grameen Phone
has about 30 million subscribers as of may 2008. To retain the current subscriber and to
increase the number of them, Grameen Phone has to communicate its customer continuously.
As a result it comes to know about customers problems, expectations and demand from the
company.
To do so, Grameen Phone gets linked to its subscriber 24 hours throughout the year by
providing information. Moreover, the company fascinates the customer by giving every type of
facilities such as SIM replacement, change of address as so on in their customer care centre. To
provide these services. The company communicates with its customers through direct or
indirect method. These methods are described below.
4.2 Products life cycle analysis
Length of a products life is shorter in telecommunication sector. So, within a short period of
time Grammen Phone's product changes phase from the introductory to growth to its present
maturity stage. At the end of the cycle there arises the necessity to alter the cycle by introducing
new products or features.
4.3 Products portfolio analysis
Grameen Phones products portfolio analysis ensures whether each product fulfils managements
minimum performance criteria, and access the strength and weakness of the product relative to
other products in the portfolio.
4.4 Cost reduction
Grameen Phone’s products quality gives this company major advantage over its competitors.
Grameen Phone’s technological innovation, marketing productivity and mass consumer helps to
maintain this lower cost.

14. Page | 14
Product alteration
Products are often improved by changing their features and quality. These features provide a
way of differentiating a brand against competition. Grameen Phone renamed its products as
Easy to Smile; Regular to Explore. A number of new features also have been added with these
products in that time. But consumer’s preferences suggest that quality is more important than
features. So quality improvements are also considered as an important strategy for increasing
competitive advantage.
Product Elimination
In deciding to drop a product from product line, Grameen Phone’s management considers
variety of performance criteria in addition to the product’s sales and priorities. But product
elimination is a key decision that is thoroughly evaluated by Grameen Phone’s management.
Because Grameen Phone’s core value is to “Make it easy”. Grameen Phone and Banglalink
have joined forces to share network infrastructure to take services at low costs to the untapped
rural market. The partnership will help Banglalink expand its outreach via GP's infrastructure.
Network-sharing between the two big players that occupy a combined 70 percent share of the
six-operator market will help both minimise infrastructure costs by utilising resources together.
This will equally benefit both operators in providing faster and cost effective services.
4.5 Product Mix
As being in a service oriented business Grameen Phone relies more on coverage and quality
than the number of services or products offered. It has divided its product into two types:
Standardized and customized product.
Standardised product
Standardised product is further divided into two categories i.e. Prepaid and Post-paid.
• Smile(Standard)

15. Page | 15
• Smile prepaid STD.
• Shohoj package
• Apon Package
• Bondhu package
• Badhonpac

16. Page | 16
4.6 Products and service

17. Page | 17
Direct Method
Through this direct process, the effective communication of Grameen phone with its customer
occurs in a two way, face to face situation where both verbal and non verbal symbols and
languages are apparent to both parties, which can be called level 1 communication. Moreover the
company deals with its subscribers by level 2 communication where a two ways, but now face
verbal situation occurs. Both in these two types of communication, instant feedback are
available. As a result, the company can gradually learn about what subscriber wants from the
company and can fill its subscribers demands, expectations and solve problems as per as its
ability. However, after learning about the expectation, demand and problem of subscriber,
Grameen phone divide these things into three segments and these are Request
# Complains
# Queries
After doing so, then Grameen phone inform their management by doing email in the internet.
Actually, in the whole process of corresponding, Grameen phone prefers too email subscribers
and management. There are some kinds of examples on direct method are shown below through
which Grameen phone be connected with customers.
$ *111*# all time get to any information
$ 121 hot online service:
$ Message service & Email contacts
$ Customer Management centre

18. Page | 18
4.7 Communication Flow In The GP
The flows of communication within the organization may be upward, downward, or horizontally
directed.
Grameen Phone Limited has downward and upward communication flows which are following:
Downward Communication
Downward Communication is that from superior to subscriber-from boss to employee, and from
policy maker to operating personnel. Five elements of downward communication are following:
Job instruction: Teaching new or current employees how to do a particular task.
Rationale: The justification for the organization and its goals; how a particular function fits into
the total organization.

19. Page | 19
Information: Orientation to the company - its rules, practices, procedures, and history.
Feedback about job performance: Supervisors evaluation or appraisal of employee
performance.
Ideology: The effort to convey to and install in employees a degree of enthusiasm, loyalty, or
support for the organization.
This flows, of course, related to the hierarchical structure of the organization.
Upward communication: When management requests information from lower organizational
levels, the resulting information becomes feedback to the request. This is called upward
communication. This communication keeps management informed about the feelings of
subordinates, helps management identity both difficult and potentially promotable employees,
and paves the way for even more effective downward communication.
Basically these two types of communication flow are used by the Grameen Phone.
4.8 Communication System in GP
Every organization has two types of communication system. Grameen Phone is not except from
them. It has also two types of communication system which are following:
External System: This system is typified by the formal organization chart. This system is used
to control individual and group behavior and to achieve organizational goals. Some elements of
external system are following:
#Business letter
#Report writing
#Business proposal
Memorandum report etc.
Internal System: The internal system develops as people interact within the formal, external
system and certain behavior patterns emerge, patterns which accommodate social and

20. Page | 20
psychological needs. In internal system, both formal and informal elements of communication
are used which are following:
#Grapevine
#Face to face communication
#PABX
#Mobile
#Letter etc
4.9 SWOT ANALYSIS
STRENGTHS
Largest Geographical Coverage
Largest International roaming Service
Strong Distribution Channels
Pre-Paid service that are so Flexible
Low price handsets with quality and variability for rural people
Lease of Fiber-Optic cable from Bangladesh Railway
Market Leadership & financial soundness
Good Owner Structure
Competitive Price
Dynamic Management Team
24 Hours Customer Services
Skilled Human Resource
Access to the Widest Rural Distribution network through Grameen Bank.

21. Page | 21
Chapter-05
Conclusion

22. Page | 22
5.1 RECOMMENDATION
Based on the findings & analysis, some realistic recommendations are mentioned in the
following:
QA department is strongly working but the department should give more concentration
on contractual employees in making them permanent to make faster growth of GP than
the present time.
Besides existing customers, other customers should be strongly targeted.
Performance appraisal system should be controlled and followed to measure the
performance of each employee.
Should give more concentration on advertising & sponsorship.
GP should increase the service quality/after sales service.
5.2 Conclusion
Grameen Phone was the first telecommunication service provider to reach a million subscribers
milestone in Bangladesh, which is still increasing. With their vast strong network, niche
marketservices, loyalty based offers and new unique products; GP has gained its customers
completedevotion hence they are able to stay as the best telecommunication service provider in
Bangladesh while commanding the most premium charges.

23. Page | 23
5.3 Bibliography and References
Internet:
http://www.Grameen Phone.com/
http://www.scribd.com/doc/24455104/MKT-GP
http://investing.businessweek.com/research/stocks/financials
http://www.scribd.com/doc/40481911/Financial-Statement-Analysis-of-Grameen Phone
http://investor-relations.Grameen Phone.com/annualreport/
http://www.slideshare.net/rubayatppt/organizational-environment-of-Grameen Phone
http://en.wikipedia.org/wiki/Grameen Phone
Interview and Class notes
Understanding Business, (8th
Edition), William G. Nickels, James M. McHugh & Susan
M. McHugh, McGraw-Hill, 2008.