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Marketing Mix of Grameen Phone New Product

3223 words (13 pages) Essay in Marketing

5/12/16 Marketing Reference this

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Grameenphone was offered a cellular license in Bangladesh by the Ministry of Posts and Telecommunications

Grameenphone launched its service on the Independence Day of Bangladesh

After almost 10 years of operation, Grameenphone has over 10 million subscribers.

Grameenphone is now the leading telecommunications service provider in the country with more than 28.7 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.

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.


Since its inception in March 1997, Grameenphone has built the largest cellular network in the country with over 12,000 base stations in more than 6000 locations. Presently, nearly 98 percent of the country’s population is within the coverage area of the Grameenphone network.

Grameenphone nearly doubled its subscriber base during the initial years while the growth was much faster during the later years. It ended the inaugural year with 18,000 customers, 30,000 by the end of 1998, 60,000 in 1999, 193,000 in 2000, 471,000 in 2001, 775,000 in 2002, 1.16 million in 2003, 2.4 million in 2004, 5.5 million in 2005, 11.3 million in 2006, 16.5 million in 2007, 20 million in 2008 and end 2009 with 23.26 million customers.

There are now more than 600 GP Service Desks across the country covering nearly all upazilas of 61 districts. In addition, there are 78 Grameenphone Centers in all the divisional cities and they remain open from 8am-7pm every day including all holidays.

Grameenphone considers its employees to be one of its most important assets. GP has an extensive employee benefit scheme in place including Gratuity, Provident Fund, Group Insurance, Family Health Insurance, Transportation Facility, Day Care Centre, Children’s Education Support, Higher Education Support for employees, in-house medical support and other initiatives.



“the management process responsible for identifying, anticipating and satisfying customer requirements profitably.


“the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.”


“deal with identfying and meeting human and social needs.One of the shortest definitions of marketing is “meeting needs profitably”


The major feature of the grameen phone marketing oriented organization is that they are aimed to stay closer to the customers and ahead of their competitors. The reason is that the basic aim of grameen phone is to attract the customers. There are four major characteristics which define the marketing oriented organizations including shared values, organization, strategy and stakeholders.

Firstly, all decisions of grameen phone consider the customers first and they share the common value of superior quality of products. Secondly, grameen phone structure has very few layers and their policies are not very difficult. Thirdly, the strategy of a market oriented organization is long term, flexible and participative. Finally, grameen phone consider the expectations of the stakeholders before making any important decision.

Grameen phone follow selling and societal marketing concepts.Grameen phone communicate with their customers regularly by newspaper,media,advertisement, by providing service with customer care.They emphasis on selling and promotion effort.Besides grameen phone is following societal marketing concept as grameen phone is participating CSR avtivities and considering consumer and society long run interest.


Their are three possible combination of marketing approach/strategy as follows:

Market Penetration:

A strategy of comapany growth by increasing sales of current market without changing their product.This is not applicable for gramen phone and also for banglalink too.

Market Development:

When a current product is launched in a new market and new targer customer group.We can ssy that not only grameen pone but also banglalink both are trying to develop their market.

Product development:

When a new product is launched in the current market by developing new features,developing different quality level,improve the technology etc.

Grameen phone:

They are providing internet service in their coverage area.In their new product ‘Adda’ the internet service is much faster and smoother than any other packages product,as they are the first provider of EDGE to their subscriber in Bangladesh.



2.1 Macro Environmental factors for grameen phone is:


Compliance with rules & regulation of the country






Micro Environmental factors for grameen phone is:

Financial Reporting

Statutory Audit

Internal Audit

Internal Control

Risk Management

Persuan of Sarbanes

Stake Holders

2.2 Bases for Segmentation:

Consumer markets can be segmented in the following ways,







Network grameen phone has the widest network coverage in the country.It has changed the communication structuere 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 a mass level.


Adda: a youth based mobile connectivity in Bangladesh.Adda was launched by grameen phone in the year 10 of Nov 2007.Ever since the launch of Adda has seen a big warm responce from the croud.Within two years Adda gathered near about 1 million subcribers.


X-plore product nationwide and international mobile and landline connectivity.Bangladesh grameen phone launched roaming service for their product for both (GSM & EDGE/GPRS) package.

4. Behavioral:

Grameen phone provide various offers for espcial occasion like Eid Special,Christmas,Noboborsho etc.

2.3 Target marketing is the market segmentation reveals the firm’s market segment opportunities:

1.Undifferentiated Marketing.

2.Differentiated Marketing

a)Product Differentiation

b)Channel Differentiation

c)Image Differentiation


2.4 Buyer behaviour:

Is an important influnce on the marketing activity of any business.Consider the following situations where buyer behaviour effets a company’s marketing activity in two completly different buying situation.

Complex buying behaviour:

Is largely influenced when a customer is attempting to purchase something which is either very expensive or one which the customer has hardly any knowledge about it.In this kind of situation the consumer trends to be very clueless about the product yet conscious and suspicious.The availability of numerious brands furher leads to more complexity than before.This can be considered mostly i a new trash buying situation,when the customer is purchasing the product for the very first time.In this case,the marketing activity of the business should be designed to address this problems.Hence such a company would have to heavil invest in large advertising campaign in order to make the customer aware of the product.

Dissonace reducing buying behaviour:

Is a different catagory.Here,though the customer know that they are verturing in expansive markets for an expensive product,the consumer perceives little difference among the variety of brands available.This could be both in a straight re-buy situation of new tash situation.However the products being somewhat homogenous and hence there ought to be heavy marketing and promotion from the company,in question further more,the company needs tto offer the product at a competitive price,while also ensuring after sale services.



3.1 a)Product Profile:

Adda: This package with the highest number of F&F numbers allows you to talk to your nears and dears ones at the lowest rate.This package gives you the privilage of calling seven F&F numbers at TK 0.49/min.This is also offering competitive tariff with features such as unlimited internet and easy bill payment facilities.Here it will give you the support to run sets like Black Berry and other hand sets.In this package you can get international roaming,and lots of other things.


Pricing is one of the marketing mix tools that a company uses to achieve its marketing objects.


Description Time Gp-Gp Rate Gp to other operators

10f&f voice call 24 hrs Tk 0.40/min Not Applicable

Voice call 24 hrs Tk 0.65/min Tk 0.99/min

Sms Tk 1.00/min Tk 1.00/min

Sms(10f&f number) Tk 0.50 Not Applicable

Interntional Calls Tk 12.00/min

BTCL incoming is absolutely free in this package.

60 second pulse on the first minute of the call.

1 second pulse is onwards from the second min.Connection fees for this package is 399.00 tk with free talk time of 100.00 tk and also with 50 sms.

If we compare grameen phone with any other operator like for example banglalink then we can see the difference between both of them.In banglalink Desh randhonu package when ever a call will be connected to any banglalink number during 12am-5pm,tk 1.50/minute will be charged per minute during the 1st five minute.Similarly in banglalink Desh ek package customers can enjoy tk 0.87/min tariff all day long to any operator.So from here you can see the difference between the two companies.



The number of grameen phone owned distribution centres all over the country is around 18.The centers serve customers directly and deal them with guidelines and advices to make the communiction through network system easier and quicker.Besides their are around 60 franchises spreading all over the country right now.This franchises deals with the customer problem and requirements,they gets complain from customers,they collect creative suggestions from the valueable customers and other channels like dealers,retailers are making the product and services of grameen phone more diversified to the customer.Grameen phone has not come to its present situation instantly.Various type of changes incurred during the years of its business.

From the very beginig of the business of grameen phone,its supply its SIM to the distribution centre.Dealers got the product and then they sold that product to the retailers.The retailers,at last sell the product to the end users.This is a traditional channel.Sometimes end user purchased product from dealers as a whole to minimize the purchasing cost.Company did not sell directly to the customer at that time.Only three years ago grameen phone introduced a new and convenient channel of distribution to overcome the traditional system.The two tails of the channel is the most attraction part of the customers.Through around 30 distribution centers,grameen phone distributes all key parts of the country.Dealers as a intermidiary,purchase the product from the centers and disribute them to two types of retailers one is exclusive retail outlet and another is nonexclusive retail outlets are permitted to sell the products of only grameen phone.They are the guaranted or authorized retailers.Non exclusive retail outlet can sell other companies product as well as they have no relation with customers or end users buy product from either of two types of retail outlet.They the get the product of company in the most convenient way at the time period.This is the process in case of ‘Place’ that grameen phone have to do for the new package ‘Adda’.

As like grameen phone banglink has proper distribution team and channel although it is distributing its product by customer care and bank but still they are struggling and working very hard to make its product country wide.



Grameen phone uses promotional activities tht communicate the merrit of the product and persuade target cusomers to buy the new package ‘Adda’.Grameen phone can succeed to acquire more than 1 lac customer within the first 1 month,not only providing good service but also using high frequency promotional activity.Grameen phone uses most of the promotional tools to give message to its customers on the new product,existing product and also product features.Grameen phone must do more than make good products they have to inform customers about their new product ‘Adda’ about its benefits and all the other facilities in this new package ‘Adda’

Grameen phone Advertising process:

Any paid form of nonperson presentation and promotion of ideas,product by an identified sponsor.Grameen phone advertising can introduce the product and also the company.Advertising can remind customer that how to use the new product and reasure them about the facilities and other things.

Advertising tools:








Grameen phone Sales Promotion Process:

Grameen phone uses sales promotions that consist of a diverse collection of incentive tools,mostly short term,designed to simulate quicker or greater purchase new product by the consumer or the trade.

Sales promotion tools:

Price Packs

Cash Refund Offer


Patronage Award

Grameen phone Public Realtion Process:

Public relation is one of the grameen phone strategic promotion tools building good relations with the company’s various publics by obtaining fvourable publicity,building up a good ‘coporate image’.

If we comapre grameen phone and banglalink then we can see that in banglalink they promote their product in different way then grameen phone.Banglalink advertise their adds in different tv channels like: Ntv, Channel 1, Rtv etc.In banglalink their sales promotion includes credit sales,commision etc.Banglalink always try to influnce their dealer,wholesaler and retailer for creating a maarket demand and sale their product.Banglalink always arrange meeting with their wholesaler and retailer to maintain a good relationship with the public.Genaral people can also go to the banglalink office for their queries and expressing their concerns.



4.1 For two different segments in the market:

Segment 1:

The price for the call is tk 0.65 per minute to any gramenn phone.

In this product ‘Adda’ gives you the privilage of calling ten F&F numbers at tk 0.40/min.This is also offering competitive tariff with features such as unlimited internet and easy bill payment facilities.

Incase of place we can see that dealer sell the product to the retailer and then the retailer sells that product to the end users.

In promoting the product ‘Adda’ they are giving add to newspapers

radio etc.

Segment 2:

The price for the call is tk 0.45 per minute.

In segment 2 here the product ‘Adda’ gives you the privilage of calling ten F&F numbers at tk 0.30/minute.This is also offering competitive tariff with features like internet with highest browsing speed,unlimited internet service and unlimited downloads.

In place we can see that its all the same procedure it will be hard to find difference between them.

In promoting the product they are giving add to newspaper,bill boards,posters,events,etc.


4.2 Grameenphone considers its employees to be one of its most important assets. GP has an extensive employee benefit scheme in place including Gratuity, Provident Fund, Group Insurance, Family Health Insurance, Transportation Facility, Day Care Centre, Children’s Education Support, Higher Education Support for employees, in-house medical support and other initiatives.Grameen phone has given their emplyees alot of opportnities in their product and service.Any new product in the market they can use or can have it before it goes to the customers hand or to the market.They get all the facilities in the product and services like the product and service which they are using is very cheap,they are calling at very cheap price,they can use the network which is very powerful which is made espicially for the share holders and for all other employees of grameen phone.By using that network they gets the internet browsing very fast and they are abeling to use all other facilities which is made for the employee of grameen phone not for the customers.They gets bonus talk time on incoming and outgoing both.Grameen phone employees has been given post paid connection by the company,were they only have to pay fifty percent of their bills and the rest is been adjust by grameen phone.So from above brief discussion you can see the facility difference between customers and grameen phone employees.

4.3 Grameen phone is a partner of telenor group in bangladesh,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.Telenor group has operations in twelve countrys across europe and asia.They are working globally and their marketing strategy is totally world wide.Telenor group is dynamic and flexible in its business approach,always exploring new markets and new technologies to make long term investment.This is part of the reason why telenor has grown from a national telephone service company to become one of the world largest mobile provider in less than two decades.This are the part of the main services that telenor provides to its consumers and enterprices around the world: voice,data,contents and other services.Were as grameen phone only deals within their region and their marketing planning is very apart from telenor.So from the above brief discussion we can get some little idea that grameen phone and telenor they both have different marketing planning for their company.



So from the above discussion we can see the marketing mix used by grameen phone to compete their competetors in the market.We also saw their investments,the way they promote their products and how they give importance to their customers wants and demands.


Reference and Bibliography:

Books of marketing (Principle of marketing, 12th edition) by

PHILIP KOTLER-Northwestern University

GARY ARMSTRONG-University of North Carolin

Grameen phone customer care.

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