AN INTERNSHIP REPORT ENTITLED
A CASE STUDY ON MARKETING OF GRAMEEN PHONE LTD.
1.1 Introduction:
Telecommunication media has added a new dimension in modern life. Today nothing is imaginable without this new dimension. Telephone has become insegragative living tools for modern life. Modern telecommunication technology has shaped different forms of phones, telegraph, fax, E-mail, Internet, Pagers, Cellular phone and so on. Since 1991, cellular phone companies in Bangladesh have been playing a vital role in the economic development and life style of the people.
It is obvious that without widespread use of telecommunication no economic development is successfully possible. As the fixed phone is more expensive and timely, the government is encouraging cellular phone companies to run their business in Bangladesh. Other telecommunication services are also being privatized. Again Wireless Application Protocol (WAP) is a newly emerging technology that is integrated mobile and Internet technology.
Mobile phone concept is not a fresh baby in Bangladesh that has already invested a lot and new opportunities have now been born for Bangladesh and the government is earning more revenue through its expansion. It has got a riches is the latest addition in the World of smooth and effective communication so that its demand is increasing day by day. It was first introduced to the Bangladeshi Market in 1991. There are four companies which have got licensed for this such as pacific cellular company (known as City Cell), Grameen Phone Ltd., TMI (known as Aktel) and Sheba World Telecom Ltd.. Mobile phones are light, small and pocket size which is easy to port anywhere and anytime. So people can communicate anyone its coverage limit.
Among these companies, my subject is Grameen phone Ltd. In our country Grameen Phone started its network on March 26, 1996. At first the company marketed its pre-paid simcards. Then the company made an agreement with the Grameen Bank in exchange of 10,000/= security money. The company gave the members the opportunity to pay the cost of the phone set through weekly installment. The condition is also now on. The only change happened in security money.
In today’s Bangladesh, there is no perfect alternative of Grameen Phone. It is now on the flow of developing its program so rapidly that it seems that this company is going to capture the master market of mobile phone in our country. Therefore, no doubt, its future prospect is bright.
1.2 Importance of the study:
The marketing department of Rajshahi University has started on internship program, the practical case of theory for the M.B.A students. As a part of the program, I have selected this research work. First, I was to choose a study area. Then I consulted with my supervisor about the pros and cons of the work. He has pointed me to the important notes of my research, with his great help; I have become able to prepare a detail research of my subject. I indulged myself in the practical field to collect necessary data and prepare this report. I hope it would be able to satisfy the researchers, as well as to build up my future career.
In my report, I have tried my best to open up the performed activities of Grameen Phone Company. In my report I have also added the shortcomings and probable measures of the company. My entire study is conducted to keep in view the above-mentioned objectives.
1.3 Objectives of the study:
Every study must have its objectives. Again the objectives should be specified and well defined. So do I have the main objective of my work is to evaluate the existing marketing system of Grameen Phone in Bangladesh and its problems.
Bearing the above view in mind, I have notified the following objectives for my research.
1. To observe and evaluate Grameen Phone’s marketing activities.
2. To extricate its problems.
3. To extricate its diffusion processes through out the society.
4. To measure it’s Marketing efficiency.
5. To find out the fruitful ways of solving the problems.
1.4 Methodology:
I followed some fundamental steps in the process of marketing research. In my research, I adopted some method to conduct the activity:
i) Definition Of The Problem:
The first step of marketing research is to carefully define the problem, which I already have defined.
ii) Source of information:
In the next step, I determined the sources of information that would be required for the study. I used both primary and secondary data to conduct my research.
Primary data:
The information, which is collected directly from the field for my research purpose, is called primary data. I collected primary data by surveying the service providers, users, non-users and dealers. I have to turn to the primary sources and collected the information directly by the following ways:
a) Questionnaire for users, none-users, dealers and other company.
b) Observation is my internship period.
c) Interviewing the directors and executive of the company service providers.
Secondary data:
When data are collected from the sources that collected earlier is called secondary source. Secondary data is collected from previous research works, reports, publications and various existing sources. Secondary data are very important to conduct an efficient research and to have fruitful result. Sources of secondary data are that I used are:
Internal sources:
a Company’s daily sales statement.
a Prior research report
a Any information regarding mobile phone.
a Company’s leaflet annual report and other publications.
External sources:
a Different books and periodicals on mobile phone.
a Government report.
a Newspaper.
iii) Data collection method:
In the case of primary data collection, three types of methods are used.
a) Personal interview
b) Telephone interview
c) Letter survey.
I have collected most of my information through personal interview. In some cases with telephone interview and letter survey. Because full information cannot be collected through the personal interview, much of the information was not from one member at a time. That’s why many times were being saved. Cost became less and accurate information was found. For the above advantage I have collected my information through the personal interview.
i) Questionnaire Preparation:
Questionnaire is the set of questions that have been fixed earlier on basis of which the respondent give the answer of the question. At the time of preparing questionnaire I have to careful about the warding of the question. And the list of questions should be in sequence. The following factors are given importance:
v Use simple language.
v Avoid lengthy question.
v Be specific as possible.
v Avoid leading question.
v Avoid unwanted question.
v Avoid estimated question.
v Avoid ambition question.
Except there, I have used some close-ended question so that the respondents can give the answer easily and consequently helped for tabulation. I also used open-ended question so that the respondent can express his judgment on the questionnaire.
ii) Pre-test:
The accuracy and validity of the question should be ensured which are used on a questionnaire collecting data by the questionnaire. If there are some mistakes, that then it can be over come by pre-test of the questionnaire. I have pre-tested my questionnaire. There were some linguistics problems, and there were mistakes in question sequence that had been corrected. I have rejected the technical term, which can be problem for the respondents.
iii) Sample:
Sample is a part or portion of whole population, which is selected purposively. But the sample must be representative of whole population. The main purpose of sampling may be hampered if the sample selection is not perfect, i.e. It may give a wrong result of the research. So, it is very important to select the sample perfectly.
iv) Sample area:
Sample area is too important for research work. There fore, the selection of the sample area is necessary for a researcher. I have selected Rajshahi and Dhaka metropolitan city as my sample area.
v) Sample size:
Sample size is very important for research work. In order to avoid any difficulty I have taken a small sample size in my research project. But I avoid too little sampling as I get a standard result from the research project. I have selected to metropolitan city of the country. From the two cities I have selected the following sample for my research project:
Table No.-1
Types and numbers of sample
Organization | Dealer/agent | User | Non User |
1 (Grameen Phone Ltd.) | 6 | 50 | 50 |
Source: Field of survey.
vi) Sample selection method:
I have used cluster sample. Here, at first I have divided the total population by some units. Then I have regarded some units in cluster as a unit. Such as, based on different profession, age, education, income. I have taken as cluster. And it is selected by random sampling. The main characteristics have been shown in the following table:
Table No.- 2
Characteristics of users group
Age | % | Education | % | Income | % | Occupation | % |
20-30 | 36 | Primary Level | - | 3000-6000 | 8 | Businessman | 44 |
Secondary Level | 6 | 6001-10000 | 34 | Service Holder | 42 | ||
31-40 | 42 | Higher Secondary Level | 8 | 10001-15000 | 30 | Students | 10 |
41-50 | 20 | Honors Level | 52 | 15001-above |  28 | Others | 4 |
51-above | 2 | Masters Level | 28 |  | |||
Higher Education | 6 |
Source: Field of survey.
Table No. – 3
Characteristics of non-users group
Age | % | Education | % | Income | % | Occupation | % |
20-30 | 42 | Primary Level | 0 | 3000-6000 | 20 | Businessmen | 28 |
Secondary Level | 12 | 6001-10000 | 28 | Service Holder | 46 | ||
31-40 | 24 | Higher Secondary Level | 16 | 10001-15000 | 26 | Students | 20 |
41-50 | 24 | Honors Level | 40 | 15001-above | 26 | Others | 6 |
51- above | 10 | Maters | 30 |
Source: Field of survey.
1.5 Limitation of the study:
Limitation is a common feature of all activities and this research is also not a limitation free. The most notable limitation of this research are-
1. The area of research is vast. It is difficult to give a concrete result or opinion based on a vast area in one and a half month.
2. Since a single hand performed the research activity, it was not be possible to collect all the information regarding the market situation.
3. Few people were not spontaneously give the accurate answer that their interviews were taken. This may distort the actual result.
4. No research can be completed without a handsome of money. But I am a student. So this research is completed after suffering from financial crisis.
1.6 Presentation of the repot:
The present study is presented in three chapters.
In the first chapter, Introduction, Importance of the study, objectives of the study, Methodology, Limitation of the study and Presentation of the repot have been discussed.
In chapter two, an analytical study is conducted to prove the actual happening in so far the general features of the existing marketing system, marketing efficiency, diffusion process and marketing problem faced with the participants and opinions of the participants towards the existing marketing system on the basis of primary data collection from the wholesalers, retailers and the customers.
The final and third chapter, reveals a summary of the study, which has been discussed steps to develop the marketing activities and conclusion have been given to solve the marketing problem of Grameen mobile phone in Bangladesh.
RESULTS AND DISCUSSION
After collecting primary and secondary data I have analyzed and got the following findings-
2.1 Marketing activities:
The most important objective of the study is to observe and evaluate the Marketing activities of Grameen Phone. Finally the following activities are found from this study.
2.1.1 Product:
A product is anything that can offer to a market for attention, acquisition, use or consumption that might satisfy a want or need.
According to Stanton “A product is a set of tangible and intangible attributes including packaging, color, price, manufacturer’s prestige, retailers prestige and manufacturers and retailers service which the buyer may accept as offering want satisfaction.”
According to Professor Kotler-“ Product is to gain customers attention and right through a market available element that is used to fulfill customers need and demand through its uses and consumption. It could be the combination of physical goods services, persons, Places, Organization and ideas.”
The Product of Grameen Phone Company may be divided into four categories:
· Connection line
· Mobile Phone set
· Pre-paid cards
· “T & T” connection.
Out of those four products, the main product is the line connection service and daily call for massage transmission.
The characteristics of mobile phone product are given below:
i) Connection line: Connection line is the main product of the Company. Usually the company can earn handsome money through connection line. In long term they use the connection line for massage transferring services. In this way a business organizations continue this business activities. The company gets the profit from the service change of the massage transformation and it is the most important of income.
The company has supplied connection line in 50 districts of the country for transforming the massage of the customers. The numbers of the districts are mentioned along with the division.
Table- 4
Connection line of the number of districts
Name of division | Number of district |
Dhaka | 16 |
Rajshahi | 11 |
Sylhet | 4 |
Khulna | 10 |
Barisal | 5 |
Chittagong | 4 |
Source: Official records
In international market Grameen Phone has supplied its connection in 50 countries all over the world. Grameen Phone Ltd. Now uses 193 Tower in communicating 50 Districts of Bangladesh.
Usually two types of connections are supplied Grameen phone:
· Pre-paid connection
· Post-paid connection.
Post-paid connection may be divided into two divisions
· Post paid zonal
· Post paid national.
It is noted that both internal and international communicate is possible by using prepaid and postpaid card. For internal service per minute service charge is Tk. 6 and the customer may talk 42 minutes and 84 minutes against Tk. 300 and Tk. 600 card respectively.
ii) Mobile Phone set: The other important product of Grameen Phone is mobile set. Though primarily it has huge demand but after certain period its demand will decrease. Because after per chasing of certain member of phone set, customer will not have demand. Only demand will exist for changing defective mobile set and to change for contemporary style.
At present Grameen Phone has supplied 38 models set of 13 companies. The chart have given below:
Table No. – 5
Models and company’s price
Company | Model |
Motorole | T-190, T-191, C-300, C-330 |
Seimens | A-35, C-45, A-50, M-50, C-55 |
Nokia | 5110, 3310, 3315, 3350, 2100, 3610, 3530, 9210 |
Ericsson | T-100, T-200, P-800, T-600 |
Sagem | MW-3020, MY-3025, MY-X5, MY-3026 |
Vtech | SPT-880d, A-600 |
Haier | HX-1000, HX-3000, H-3633 |
Bird | 8288 |
Panasonic | GD-75, GD-35 |
Maxon | 6890 |
TCL | 3188 |
Sendo | S-200 |
Alcatel | OT-501, OT-311 |
Source: Official records
The advantages of mobile phone sets are given below:
· It gives voice mobile service
· It can supply the news of two newspapers simultaneously.
· It gives current news of game and sports.
· There is a scope of changing ring tone of mobile set.
· Music recording facilities.
· Calculating facilities.
· Advantages of alarm system
· Four-year warranty facility.
· It also gives us call holding, call waiting, call transferring and call conference facilities.
iii) Pre-paid card: Using pre paid card, the consumer of mobile phone need not feel excess trouble for paid bill. Besides. It can protect from high expenditure. There are four types of pre-paid cards. These value and using time are given below:
Table No. 6
Pre-paid cards value and using time
Cards | Price of cards | Expiration |
Green | 300 Tk. | 21 Days |
Red | 600Tk. | 45 Days |
Blue | 1200Tk. | 90 Days |
Orange | 2400Tk. | 180 Days |
Source: Official records
Advantages of Pre-paid cards are given below:
· It is free from billing burden.
· There is no scope of extra or take billing.
· The customer may control their cost.
· They can measure the unit of the land of the time of talking.
iv) T&T connection: Mobile operation are providing T&T incoming and outgoing connectively along with mobile-to-mobile connection. Except prepaid service different package are being offered with T&T connectivity.
2.1.2 Product improvement:
Product development is an important function to improve the quality of the product for each company. In order to contrite and fulfill the demand the producer found to improve the quality of the product the following steps have been taken for improving the quality of its product:
v Grameen phone Ltd.actively considers about extension of its network program.
v They are also interested to abolish the obstacle in network program.
v In order to introduce with Internet they are try to improve the quality of mobile phone.
v There is a scope of increasing the number of T&T network.
Ø Network work system for mobile connection:
- Grameen phone Ltd.users its own tower for giving connection facilities.
- It also railway telegram line as a backbone.
- G.S.M technology is also used.
2.1.3 Collection of mobile set:
The mobile set of Gremeen phone Ltd is not made in Bangladesh. These set are imported from the following countries:
(i) India (ii) Japan (iii) Thailand (iv) Korea (v) USA etc.
(i) India (ii) Japan (iii) Thailand (iv) Korea (v) USA etc.
2.1.4 Distribution:
Main objective of the production is consumption. And to make certain products consumption it has to send these to consumers.
Producers for their own interest, choose the right way to send products to their consumers. Generally the process or system is used to distribute or sell products to consumers is refereed as distribution process.
At present a good number middleman are working for selling mobile phone set. But in near future the number of middleman do not appoint required middleman.
Only one middleman is enough for each direct lead quarter. At present the pre-paid cards is sold the rough middleman. But anybody can these cards to the customers. For example Bank, retail shopkeeper etc.
So it clear that middleman is not essential for selling pre-paid cards.
From the above description we can say that the distribution of mobile phone and its relevant materials are very short cut and direct. The distribution system of mobile Phone is given below:
Company
Dealer / Agent Customer
Customer
Sources: Organization
The given facility to be dealer:-
Ø Commission: In this stage the dealer set commission selling the product. The rate of commission is correlated with the volume of sale.
Ø Using system: The using technique is informed to the dealers through seminar.
Ø Transport facility: The Company gives the transport facility for carrying mobile set and other relevant materials.
2.1.5 Price:
Price is a relative word, which we generally use. To sell a product. Price is a very important. In marketing, price means a point, where seller willing to sell product or services in exchange of an amount of money which customers are also willing to pay. Therefore, the market accepted value that is measurable with money is price.
Price fixation is essential for each company. Since it determines company’s success a lot. If company sets price more than or less than the of the product it will be in critical position. So, it is reasonable to set right price. In past mobile was considered as a shopping product. I can see price in aspects.
(i) Connection fee: At time of connection the institution take a certain amount of money as connection fee and security. Because increase of failure to paid the bill the institution may cut down the security-moneys. The rate of connection fee is almost same in every district in Bangladesh.
(ii) Mobile set: There are various types of mobile set in different company’s. There are different services in different mobile. So, the price of the set is also differing. The price list of the set of different mobile is given below:
Table No.- 7
The prices of the products ranges of different companies
Name of company | Model | Price |
Motorole | 4 | 9405-12775 |
Seimens | 5 | 8045-11875 |
Nokia | 8 | 10675-66975 |
Ericsson | 4 | 10025-41975 |
Sagem | 4 | 7875-17475 |
Vtech | 2 | 7975-9675 |
Haier | 3 | 8870-11345 |
Bird | 1 | 10805 |
Panasonic | 2 | 11405-15905 |
Maxon | 1 | 14775 |
TCL | 1 | 14975 |
Sendo | 1 | 9375 |
Alcatel | 2 | 9405-9475 |
Source: Official Records
(iii) T & T connection: The connection who have T & T customer, they have to paid 1-70 Tk. For internal connection and Tk. 5-10 for ISD connection.
Billing system: There are two types of billing system of this mobile phone company. They are-
(a) Pre-paid
(b) Post paid.
a) Pre-paid: Pre paid is a card system, the has to buy a card phone against a certain amount of money and can also talk with this card a certain period of time. The following table shows the value of the pre paid card:
Table No. 8
Pre-paid cards value and using time
Cards | Price | Time |
Green | 300 Tk. | 21 Days |
Red | 600 Tk. | 45 days |
Blue | 1200 Tk. | 90 days |
Orange | 2400 Tk. | 180 days |
Source: Official records
(b) Post paid: Post paid in this system the company collects their bill by the specific bank. This system is shown in the following table-
Table No. 9
Billing rates
Particular | Price |
Post paid national | 6.90 |
Post paid Zonal | 4.60 |
For message call | 2.30 |
To watch news | 2.00 |
Line rent | Post-paid ISD 550, Post-paid National 225 Post-paid ISD Polli 49 |
Source: Official records
2.1.6 Promotion:
Promotion is communicating information between seller & buyer to change attitudes and behavior.
According to Philip Kotler- “ Promotion stands for the various activities. The company under takes to communicate its products merits and to persuade target customer to by them.”
From the above definition I can say – “ To increase any products market share promotional program is very crucial.”
But at present the Grameen Phone Company does not take care about promotion activities. Because the demand is higher them their networking capacity.
They do not advertising on T.V through they advertised previously. But they advertising on newspaper, sign board, neon sign. Besides this, they become sponsor at the cricket match between West Indies and Bangladesh in October, 2000 and April in 2003. And they supplied Lego for the players.
2.1.7 Procurement:
Procurement is very important for an organization. Any company has to purchase something’s for operating, such as raw materials, machines, equipments etc. Among the purchased goods of Grameen Phone.
i) Mobile set which later branded which their company name and being sold buy them.
ii) Pre-paid cards are mention worthy.
Besides these some goods bought for long-term usage:
i) Tower
ii) Network, related tools.
iii) Apparatus for operating office.
The price of the about goods is not fixed all the year round. The price depends on their connectioning capacity and demand. It is not that, there is no capital crisis of the company.
2.1.8 Storage:
Holding goods seven the time of their production and final state. It utility is increased at the time of storing of goods. Besides this storing ma bring the balance between the demand and supply. It also helps to maintain the elasticity of demand and supply. So the import of storage is very significance for the organization. Through the materials of Grameen Phone is storable, there is no necessity of storing Prepaid cards and mobile set. The product is usually sold just after the procurement. Usually the product is arranged show room by selling. The prepaid card is very small in size this does not take room in storing. So, it is clear that storing is not so important for the mobile set and cards.
2.1.9. Transportation:
The replacement utility is created by transportation of the goods. It is an important function of marketing. The important of transportation is very high for proper distribution, market extension and to combat in the competitive market. Grameen phone does not like the responsibility of transportation of mobile set and pre-paid cards. It is the responsibility of dealer agents. As a result the organization has to communicate with different dealer and agents and for this purpose the organization has to spend some money. And the company spends some money to bring the goods from Chittagong port. Again the head office spends some money to communicate with the branch office.
2.1.10 Quality control:
Quality is what customers expect in the product and error free that type of product is quality product. Product and services quality is essential foe each company. Because if any company’s product or service quality is low, it is forced to close its business for not able win in the competition. We may consider the following factors in order to assess the quality control system of Grameen phone:
i) Quality of network: Collecting international from consumers I found that the quality of Grameen Phone Company’s network is not so good.
ii) Quality of Mobile phone: The quality of the mobile phone is comparatively good which is supplied by the Grameen Phone Ltd. as a machine some times the set may go out order but it is not so serious.
iii) Pre-paid card: There is no problem about the quality of Pre-paid card. In the time of collecting data I did not get any allegation against Pre-paid card.
2.1.11 Market information:
Market information is very important because if company cannot collect market information it will not be successful. Grameen phone usually collect information from two sources:
i) Market research is process of collecting information. Grameen phone also collect very limited information through market researching.
ii) To forecast demand it collects information from its previous sales record.
Besides the above processes the organization may collect market information through the Internet.
2.1.12 Risk:
There are a good number of uncertainties in the organization about the sale of product, reasonable price, return of the investment etc. there is a strong probability of loss of the organization from the competition or declining the price. There risk is never avoidable in business. And it is very difficult to measuring the risk in business.
In Grameen phone unpaid bill is also a risk. In order to avoid this risk the company binds the customers to pay a certain amount of money at the time of purchasing the goods. The organization may disconnect the line if the amount of bill is higher then the security. In this way the organization overcome the risk. So, it is said that the risk is very limited in Grameen phone.
2.1.13 Sales:
Sales are very crucial for a company. If organization cannot sell its products or services then that company will not be able to run its activities. So, every company considers this with great importance. That is without sales company will have any existence and that is why it is important.
The selling function of Grameen phone are divided in two categories:-
i) Mobile phone sales and connection line sales.
ii) Sales according to information and message exchange.
At present, set connectioning and selling are the most important function of the organization. But after a certain period the income of set connectioning and selling may be declined. On the other hand, the income may increase from message exchanging gradually. Because the information transferring service will increase with the set selling simultaneously. And it is the final selling of the organization.
Table no. – 10
Sales of Grameen Phone company:-
Year | Dhaka | Rajshahi |
1997 | 21000 | ------------ |
1998 | 48000 | ------------- |
1999 | 75000 | ------------- |
2000 | 235000 | 2200 |
2001 | 360000 | 9000 |
2002 | 405000 | 13000 |
Source: Annual report.
2.2. Marketing Problem:
The problems related to marketing function is called marketing problem. The marketing activities cannot operate properly if these problems are not being solved accurately.
The marketing problem of Grameen Phone Company; on the basis of the information collected from agent, dealers, users and non-user are given below:
2.2.1 Product:-
The products of Grameen Phone Company can be classified in four categories. These are-
i) Network related service: The main problem of the product is that its network capacity is less than its demand. For this reason the customers cannot get services perfectly. Again for some technical storage mobile phone company customers are facing problem to exchange information. Such as, a customer some times do not get connection or line due to busy network when he needs it much.
And their problem is that network yet not set up countrywide for which the consumer cannot send information all the place.
ii) Mobile phone set: The second problem of Grameen Phone is mobile set. Mobile sets are imported from other countries rather than manufactured. Basically, dealers imported this from the manufactured countries. The sets are purchaser from this company, which have good well in all over the world and for this, problems do not found in the mobile sets. Since it is a mechanical product it may have some problems ands few complaints come from the consumer about mobile phone set. It is noted that mobile phone may be a perfect goods but it may cause of “Brain Cancer” who use its vigorously.
Table No. 11
Subscribers’ opinion about mechanical problems of mobile hand sets:
Subscribers’ opinion about mechanical problems of mobile hand sets: | % | Number of User (out of 50) |
Yes | 26 | 13 |
No | 70 | 35 |
Sometimes | 4 | 2 |
Source: Field survey
iii) T & T Connection: Recently now the Grameen Phone Company is giving T & T connectivity. But this is included in different packages; all the packages do not have these facilities.
If one wants to T & T connection he has pay both bill (T & T mobile), which is sometime expensive, especially mobile call charge.
Table No- 12
Number of users those have T & T and do not have T & T connectivity:
T & T connectivity | % | Number of users (out of 50) |
Have T & T connection | 62 | 31 |
Don’t have T & T connection | 38 | 19 |
Source: Field Survey
iv) Pre-paid card: Pre-paid card is almost safe and qualitative. Pre-paid card contains a number that is covered by a thin protection. So, there is a risk of missing the number.
2.2.2 Distribution Problems:
As the handling of Mobile Phone is very easy only one or two dealers are enough. Usually the bill of mobile phone is paid through the bank and the dealers are not essential to pay the bill. Pre-paid card is not available in everywhere. The authorized dealers are the only sources of the card. It is a problem to the customer.
2.2.3 Price problem:
The price of mobile phone can be classified in three categories:
i) Connection Fee: The connectioning fee is reasonable to the customers. If the connectioning charge is minimized all level customer may avoid the opportunity.
Table 13
Customers opinion about mobile phone connection price: -
Opinion about mobile phone connection price | % | Number of user (out of 50) |
Expensive | 38 | 19 |
Reasonable | 54 | 27 |
Inexpensive | 8 | 4 |
Source: Field survey.
ii) Mobile Phone Set: Maximum customer has opinion that the price of set is reasonable. But the price of set is not stable. So the customer falls in difficulties to buy the set.
iii) Billing: I have seen in my research that the objective of consumer towards mobile phone in which most of them think that the bill of mobile phone is excess, which is a major problem.
Every types of cost are included in Pre-paid card and there is no line charge. But in the case of Post-paid one has to pay both.
Table No. 14
Customer opinion about call rate:-
Opinion about call rate | % | Number of Users (out of 50) |
International | ||
Expensive | 36 | 18 |
Reasonable | 60 | 30 |
Inexpensive | 4 | 2 |
Local | ||
Expensive | 98 | 49 |
Reasonable | 2 | 1 |
Inexpensive | - | - |
Inter-district | ||
Expensive | 56 | 28 |
Reasonable | 38 | 19 |
Inexpensive | 6 | 3 |
National | ||
Expensive | 56 | 28 |
Reasonable | 38 | 19 |
Inexpensive | 6 | 3 |
Source: Field survey
2.2.4 Promotion:
We know that, there is a vital importance of promotional activities at introductory stage to any firm or organization, which is why company has to do more promotional activities of this stage. At present the firm operate their promotion activities by newspaper, billboard, bill sign, neon sign etc, which is not enough.
2.2.5 Procurement:
The most important product of Grameen Phone is set. The organization is free from all kinds of difficulties in buying the mobile set. They can easily buy the product from international market. They are not aware about the production cost-of the product. But it is assumed that production cost may less than the importing cost.
2.2.6 Storage:
Warehousing is not essential for the company because the product is sold very quickly, as the demand is very high.
2.2.7 Transportation:
Transportation cost is not so significance. Because the transport cost is very negligible in comparison to the price of the product. So, the organization does not consider the transportation cost seriously.
2.2.8 Quality control:
i) Net Working: The used technology of mobile phone network is not more advanced. Since the consumer is facing net work problem off and on such as-
2 Subscribers some times do not get connection
2 Do not get clear tone etc.
Table No. 15
Connection availability with in 24 hours:
In answer of connection availability within 24 hours | % | Number of users ( out of 50) |
Yes | 44 | 22 |
No | 20 | 10 |
Sometimes | 36 | 18 |
Source: Field survey
ii) T&T connection: There are few problems about T&T connection but the facility is not available everywhere. That is why; most of the consumers are deprived from this facility.
iii) Mobile set: The quality of mobile phone set is well. But there are few complaints about mobile set.
iv) Pre-paid card: There is a risk of demolishing of the card number. So, the customer is bout to search the number very carefully.
2.2.9 Market information:
The organization survey the customer’s opinion in order to get exacts demand of the customers. They also want to get the complain of the customer through Internet. But this program is not regular. It is a problem of market information. On the other hand, in maximum cases it is not easy to send the complain in Internet. So, the gap between the customer and the organization remain unchanged.
2.2.10 Sales:
The selling system of mobile phone is discussed in two ways. Such as –
i) There are no different in selling and connectioning of mobile phone. The demand is higher than the supply. So, the product is easily sold.
ii) In the case of call service the income may increase along the amount of the selling of mobile phone. But the income from the call charge is higher than T&T call charge. So, it is a serious problem for the institution.
2.3 Diffusion process:
Diffusion is the process by which and innovation is communicate through certain channel over time among the members of a social system. Depending on my acceptance data the detail particulars of diffusion process of Grameen Phone are given below—
2.3.1 Characteristics of innovation:
The following information are found by analyzing the characteristics of diffusion process of mobile phone.
i) Relative advantage: Mobile phone has some relative advantages.
a) Easy transferable: Mobile phone is easy to carry from one place to another place. So, the consumer can get the service easily and continue only, which is possible by hand phone.
b) In urgent service: We may get the urgent service through mobile phone. This phone can help us to communicate with the counterpart at any time and any place.
c) Less expensive: Mobile phone is less expensive in comparison E-mail, Fax, Internet and telephone.
The causes behind using the mobile phone is given below:
Table No. 16
Users opinion about using the mobile phone
Description | Particular |
Urgent Need | 8% |
For communication | 51% |
Easy transportation | 6% |
Movability | 31% |
Others | 4% |
Source: Field survey
Table No. 17
Non-user opinion about mobile phone
Particulars | Percentage |
Do not feel necessary | 5% |
Too expensive | 80% |
Known does not have telephone | 8% |
Others | 7% |
Source: Field survey
So, it is clear that there are much more advantage of mobile phone is comparison to other communication media.
ii) Compatibility: social value is not an obstacle for using mobile telephone.
On the other hand, mobile phone does not play any negative impact on social values & social factors are not any for using mobile phone. From the survey report it is found that mobile phone does not any social problems. But some non-users claim that mobile phone is used for antisocial activities like robbery & hijacking & finally it creates some social problems.
iii) Testability: Though it is assumed that the price of mobile phone is high actually it is purchasable of middle class people of our country. Almost town dwellers of Bangladesh have bought mobile phone.
Again mobile phone service facility is available in all towns in Bangladesh. Thus everybody has already become conscious of the benefit of mobile phone. So, it is very urgent to find out the effect of mobile phone.
iv) Observability: It is very easy to observe the impact of mobile phone and everybody can know its advantages. Its effect is also easy to realize. For example, it is the easiest means to communicate with friends and relatives through mobile phone and it is one of the advantages. The customer may consult with the users about the advantages of mobile phone. The consulting rate have given below:
Table No. 18
Consulting rate
Particulars | Percentage |
Friends | 44% |
Users | 38% |
Sellers | 14% |
Others | 4% |
Source: Field survey
2.3.2 Communication Channel:
Communication Channel is very important for any diffusion process. Mobile phone is used as a communication channel and it is a very effectives means of communication. The users have informed about mobile phone from different sources. The following is given for this purpose:
Table No. 19
Users source of information
Particulars | Percentage |
Advertising | 4% |
User | 20% |
Newspaper | 72% |
Sellers | 4% |
Source: Field survey
Besides this, the users suggest for buying mobile phone. It works as a communication channel. Number of mobile buyers and their consulting system is given below:
Table No. 20
Particulars | Percentage |
Retailers | 38% |
Friends | 44% |
Others | 18% |
Source: Field survey
From this above table it is clear that most of the users have informed from friends and newspaper. The satisfied user/buyer is a good media of communication channel. The satisfied customers have played a very significant role for diffusion the mobile phone.
2.3.3 Time:
Adoption time is an important factor. That is why, some goods may be popular within short time but some goods may not be popular even within a long time. Three factors are responsible for timing:
i) After getting the information how much time is taken by the customer for buying or not buying. In the case of mobile phone the customer usually take quick decision. Because it is not difficult to understand the advantages of mobile phone. But it is important to note that the most significant factor of buying mobile phone is financial capability and the influence of friends and relatives. So, as customer can take his decision quickly.
ii) The gap between the two customers: It is found that the gap between two customers is very limited. Usually the second customer does not delay at all. As a result the customers number has increased very rapidly viz. the number of customers was 40000 in July, 1999 which has increased 200000 in February, 2000 and 270000 in may in the same year.
So, it is clear that the gap between two customers is very short. From the report of concerned company, it is known that the supply is run out very quickly as the sale of mobile phone is very high.
iii) Innovation rate of adoption is a system: In this system the rate and motion of purchasing mobile phone is estimated. The mobile phone is sold in a large volume at a time. So, the supply of the goods is run out very quickly. From the above description it is clear that the diffusion of mobile phone is very high.
So, we can say that satisfied customer is the single most factors for diffusing the service of mobile phone quickly. Thus we can say that the diffusion of mobile phone is very high.
2.4. Marketing Efficiency:
Marketing efficiency is the total activities of supplying and selling product with effectiveness and perfecteness as the producer or trader become more benefited as well as the customer get his full satisfaction.
Skill & efficient marketing reduce marketing cost as a result the amount of profit increase ultimately. Besides, it also increases the good will and image of the institution. It is very important for maximizing the satisfactory of the customer, minimizing the cost of the product and finally its increase the stability of the business.
To measure the marketing efficiency Grameen mobile phone following factors are considered:
2.4.1 Quality of product and service:
There are few problems with the quality of the Grameen Mobile Phone sets with the survey to the customer I see that they complain a little about the companies of the phone set. So, it can be said that the quality of mobile phone is enough. But the servicing value of the date exchange is not so good. The complaints about the given service of the company, obtained from the customers are given below:
Table No. 21
Total number of respondents = 50 from Dhaka & Rajshahi Metropolitan city.
Opinion | Yes | No | Sometimes |
Noise of the time of speak | 22% | 44% | 34% |
Net work problem | 52% | 48% | Nil |
Excess bill | 28% | 62% | 10% |
Source: Field survey
2.4.2 Cost:
One of the important elements of measuring efficiency is cost. In a commodity, if the production cost is more, the selling price will be also more. As a result, the satisfaction from the buyers cannot be obtained. On the other hand, the less is the cost, the more will be beneficial for the company because, for this, in one hand the satisfaction of the buyers can be obtained by lessening the cost of the commodity or by increasing the value of services. On the other hand, the company can obtain more benefit.
By the survey of the customer I see that users and non-users are complaining that the rate of the bill of mobile phone is excess. But they are not complaining about the payment of phone connection and the cost of the set. From this, I can say that, the money, which is spent for taking connection of mobile phone and for buying the phone set, is not excessive. So, in conclusion it can be said that although the buying of mobile phone set and taking connection is not expensive, spending data or news by mobile is expensive.
The research shows that:
Table No. 22
Opinion of the users about different types of services:
Opinion about call rate | % | Number of Users (out of 50) | Opinion about mobile connection phone price | % | Numbers of users (out of 50) |
International | Expensive | 38 | 19 | ||
Expensive | 36 | 18 | Reasonable | 54 | 27 |
Reasonable | 60 | 30 | Inexpensive | 8 | 4 |
Inexpensive | 4 | 2 | |||
Local | |||||
Expensive | 98 | 49 | |||
Reasonable | 2 | 1 | |||
Inexpensive | - | - | |||
Inter-district | |||||
Expensive | 56 | 28 | |||
Reasonable | 38 | 19 | |||
Inexpensive | 6 | 3 | |||
National | |||||
Expensive | 56 | 28 | |||
Reasonable | 38 | 19 | |||
Inexpensive | 6 | 3 | |||
Source: Field survey
2.4.3 Availability:
With availability it is indicated that how is receiving the service, at any time can it be taken connection or not and can be used or not. If the service is available the satisfaction of the customer will increase. As a result, the company will obtain more benefit. A customer cannot take the connection of the mobile phone if he wishes. The company cannot give the connection all the year round, although there is excessive demand of the mobile phone. The connection efficiency, which is increasing at a definite only if that amount of efficiency, is given. Again Grameen Phone Company needs advanced technology and capacity is also less. For this, the customers cannot use mobile any time as well.
So, we can say, the availability for giving connection and sending news of the company is less enough.
2.4.4 Sales:-
Sales are the best indicator of performance in barriers. The performance of sales has been maintain below:
Table No. 23
Sales volume
Year | Dhaka | Rajshahi |
1997 | 21,000 | - |
1998 | 48,000 | - |
1999 | 75,000 | - |
2000 | 2,35,000 | 2,200 |
2001 | 3,60,000 | 9,000 |
2002 | 4,05,000 | 13,000 |
Source: Official records
From the above table it is seen that the selling rate is increasing very rapidly.
3.1 SUMMARY:
In Bangladesh mobile phone has brought a revolutionary change increase of telecommunication media basically four mobile companies have been introduced hare. Among them Grameen Phone tops the list.
Grameen phone has become a very popular media throughout the country. Though at first its network coverage was limited, no it is well established almost all over the country. So, maximum part of the mobile phone subscribers is under Grameen network.
This research is conducted to analyze Grameen phone user’s marketing activities and diffusion process throughout the society. On the basis of close findings, marketing problems of Grameen phone are identified and problem solution are given.
The research also shows that Grameen phone has a good future prospect as its consumers are growing on. But some lower bill charge is creating threats to some extent. Again its diffusion rate has been increased so rapidly and it has all the trends of that. It has no social obligation or hindrance. Its demand is increasing because of its diffusion rate. The customers are mainly dissatisfied with network problem in some parts of the country, higher package price, higher local call charge, limited repair and service center, limited customer care center, excessive post-paid and so on.
Proper marketing policy and program in accordance with the customer’s needed and services can ensure satisfaction to Grameen phone subscribers.
Grameen phone should expand the sale of mobile phone and all kinds of facilities relating to the demands of the customers. Because such days will come when demand may not increase but the call number will then the present once.
Inconfine, I want to say that Grameen phone is creating a new world of telecommunication with more facilities than the other three in our country. It is becoming the magical key to open the secret door of making the world a global village.
3.2 Conclusion:
Mobile phone is a newly immerging product in our country. Though at the beginning, it was not an the flow of use, now its demand is increasing day by day for its easy communicating facility.
The present age is mainly marketed by technology and information. Here in intel communication plays a significant role. Mobile phone contributes highly to the significance.
Among all the mobile phone companies, Grameen Phone Company Ltd. stands ahead. Its network, billing charge to some extent such as Grameen Polli Phone and so on are exclusively better than the others. So, the subscribers of Grameen phone are quite more than the others.
Yet Grameen phone some specific problems. Such as network, billing charge and hand set charger. If the company takes necessary urgent measures to solve those problems, it will be able to reach its commercial goal. Consequently, its call number and the sole of mobile phone hand set will be increased.
To sum up, after closing up my research work, I can say that mobile phone has bright prosperous future. And Grameen phone will bring revolutionary commercial progress if it can correct its problems. I think the company has a golden opportunity to obtain maximum commercial benefit.
3.2 Recommendation:
Problems relating to Grameen phone have been mentioned before. To solve them, I have collected some suggestions from the company, middlemen, users and non-users and suppliers a recommendation based on those information.
Products:
The products of my research are Grameen phone. I have divided the product in sequential categories customer’s opinions about the products are mentioned below:
i) Phone-set: No complaint about the mobile phone set is found distinctly.
ii) Network: Tower capacity is limited and segregated. New and developed technology must be applied to increase tower capacity.
iii) T & T Connection: The customers having T & T connection gets no extricable facility of mobile phone of all kinds. So, the company should undertake urgent necessary steps to solve the problem.
iv) Prepaid card: No mentionable problem can be founded.
Distribution:
Direct channel is perfect for distribution of mobile phone. Now one dealer should be selected for each district. So it is not a vital problem. But the vital one relies on the bill collection. Some specific banks collect the bills, which does not provide distance facilities to every customer. So, this problem should be reduced soon.
Again mobile phone card should be distributed through small business with a specific commission. The processes have been introduced yet not reached all the places consequently this problem should be reduced as early as possible.
Price:
From three points of view, I have justified its price-
i) Connection fees: Though from the angle of benefit, mobile connection fee is not mentionable, yet from practical point of view in a developing country like Bangladesh, it is imposed few complaints. By reducing the fee, it is easily possible for the company to increase its users rapidly.
ii) Mobile Set: Problems regarding mobile set is not so acute that it can be mentioned boldly. Yet as any bearable cost of a standard and useful product bring more expansion, the company, for the sake of calling up gradation, should reduce the price of mobile set to an acceptable condition. Then the product will be able to attain its main objectives of longer lasting profit.
iii) Bill related: Billing rate of mobile phone is higher than T & T some extents. So in many cases people do not feel comfort by making calls through mobile phone. Here in the company should bear in mind that Bangladesh is a poor country. Most part of its population lives under proverty-line. So, inspite it having will, they cannot easily use the phone what is a notable matter of consideration. So, billing rate should be moderate in accordance with the practical condition of the people. Besides in regard of billing system, the company deliveries the billing cahrt. So shortly that the subscriber are faced with a great problem to pay the bill within a short time. So there should be set a considerable gap between the supplement and payment of the bill.
Promotion:
In respect of recent increasing demand, no notable promotional activities are required. Yet to keep the existence of the demand toward phoning facility and to capture the competitive market, several promotional activities such as advertisement through news paper, magazines, satellite TV etc. will grow beneficial fruits to the commercial tree of the company. In it beside the commercial identity and good will, profit will be increased.
Procurement:
Dealers of mobile phone Company’s procure mobile hand sets from international companies which have there own sale-centers in our country. Therefore, they do not face any extricable, proble in procuring those sets.
Dealers of mobile phone Company’s procure mobile hand sets from international companies which have there own sale-centers in our country. Therefore, they do not face any extricable, proble in procuring those sets.
Quality control:
The world is up-going with the blessing of new and developed technology. So, standard and attractive technological development is essential to last longer to the eyes of the increasing number of users. Powerful tower should be set up in order that this users can easily and comfortably maintain there communication for any place of the country.
i) T & T connection: It is practically ovious that all kinds of Grameen phone sets cannot enter the T & T connection. So, many customers are not interested to buy mobile phone. Therefore, Grameen phone company should it hit upon a plan to overcome the obstruct between mobile phone and T & T connection.
ii) Pre-paid Card: There is no problem of the quality of pre-paid card except the difficult of its number vanising.
iii) Mobile Phone sets: There are few problems of mobile phone sets such as easy customer service and relation center, charges and some others. Those problems should be solved urgently for the increasing demands of the customers.
Marketing information:
The company supplies the subscribes the billing paper without leaving any space for public opinion which is a good media of directly communicating with the subscribes in free of cost. Therefore. It should take necessary measures to evaluate customer’s opinion and complaints by leaving perfect space for them.
Sales:
For practical field, I am reporting that the sales of Grameen phone sets are on the increase. So, the company should pay a very close attention to the necessities of the increasing connections. In it, call number will be increased. Moreover, for upgrading resets, it should throw its thought to billing rate network expansion and the rate of mobile phone sets and some other important.