Another venture of the Egyptian telecom company, the Orascom telecom, Banglalink is currently one of the leading cellular companies, successfully operating in the country since 2005.
Reputed for its effective price setting strategy, the telecom giant enjoys an extensive network of coverage throughout the Bangladesh. Year 2006 has been considered as a golden one for the company, during that particular year the amount of Banglalink users touched an impressive figure of 3.64 million.
Being the first one to provide the facility of free incoming calls to the cellular users, Banglalink enjoys the reputation of a trend setter within the telecom entourage of Bangladesh.
The hidden secret of Banglalink’s success is the company’s indirect channel of distribution alongside an effective marketing strategy that enables the organization accomplishes their prime goal of fast-paced growth with in a short span of time.
Statement of the Marketing goal
Marketing goal of the Banglalink is to provide its customers a kind of a service or experience that mainly focuses upon delivering an unmatchable cellular service through out the country.
Lately the company eyes to achieve the realm of telecom industry in Bangladesh by delivering superior quality of service to their customers.
Both the above stated goals can only be achieved through accomplishing the highest number of service users with in the country alongside a widely spread network that must cater each and every region of Bangladesh.
Situation analysis will explain the external and internal environment of the company. Analysis of the external environment enables an organization to realize its potential threats and opportunities.
On the other hand internal environment focuses upon highlighting the major strengths and weaknesses of an organization.
The prime strength that can also be perceived as a competitive advantage of Banglalink is their current market share in the telecom industry i.e. after Grameenphone they are the second most used cellular service in Bangladesh.
Secondly the company under which they are operating is the Egyptian telecom giant Orascom, so when they first invaded the market in 2000 their prospect customers were having a positive image regarding the reliability and quality of the service.
Their ability to deliver innovative and customers focused services at the right time is also their another strength that differentiates them from the rest of the other telecom services operating with in the environment.
Effective pricing strategy is a feature that every telecom company desperately requires and especially the one who is operating in the region of Asia, as market segment of this particular region is price sensitive. So by following the trend Banglalink serves its customers with new and attractive pre-paid alongside post-paid packages.
Customer Care department of Banglalink is rated as amongst the most efficient in he business, always ready to help the customers and answer their queries regarding the service on time.
Effective decision making abilities of Banglalink managers, is also another significant factor that enables them to survive the cut-throat competition of the industry.
Huge financial base of Banglalink enables it to extend its operations at will together with pursuing new and innovative strategies.
There are different regions in Bangladesh where people are inclined more towards Banglalink’s competitor Grameenphone as they are more established in the country in comparison to Banglalink.[sky]
Lack of experience of their sales force is another flaw that needs attention as it is hampering the organization’s growth.
Apparently Banglalink is short of sales force and in today’s competitive world a company cannot grow until and unless they don’t enjoy the services of a sufficient sales force.
Prime Competitors of Banglalink
The prime competitors of Banglalink are
As far as these three competitors are concerned Banglalink is ranked above AKTEL and Teletalk but Grameenphone is serving them with tough competition and currently holds the prestigious position of the market leader.
At this point in time the Grameenphone has captured the 55 percent of the Bangladeshi cellular market that makes Banglalink a challenger in the telecom sector.
Target segments of Banglalink
Target segments of Banglalink are lately every section of the society that possesses a need for availing the cellular services, but the segment should also have the buying power to afford that particular service.
Keeping in view the needs and buying power of every active market segment Banglalink has devised and introduced attractive packages in accordance with the affordability of the customer
• There are different post paid and pre paid packages that are considered as the main quality offering from Banglalink.
Key features of Banglalink’s pre-paid connection
• Banglalink provides the pre-paid connection with zero monthly subscription fees, secondly they have one country one rate.
• 30 days free incoming facility after the expiration of validity period, Banglalink was the first cellular network to introduce the most demanded feature i.e. the facility of free incoming calls. Prior to the introduction of free incoming facility every telecom company used to charge even on receiving the calls with in the territory of Bangladesh.
• Maintained prices are mostly offered revolving around a certain figure.
• Their unique selling proposition is innovativeness of their services alongside their value added features
• Prices also vary with respect to the post-paid as well as pre-paid package subscription
• Banglalink’s price effective strategy has enabled them to capture the second highest market chunk in the country i.e. 55 percent.
Banglalink is currently operating in 64 districts of the country where they are making their presence felt through franchises. For a telecom giant like Banglalink their unusual and informal distribution system is the most effective one where people can not only buy new connections but they can also get their queries entertained their as well regarding their current package and for the forthcoming packages as well.
• Free minutes, lucky draws, exclusive customer cards and especial value added services
• The provision of few exclusive services to a few selected customers.
• Commercials are aired on the electronic and print media as well.
Market penetration is done on the account of age, gender and sex of particular market segment. For example short message service packages for the youth, free minutes for the rest and post-paid services especially carved for business personals.
Regarding the market development strategies the company maintains a special department for this particular purpose where they formulate different strategies in accordance with the changing trends and increasing competition.
The diversification of products by the company is done through spreading their extensive network of services to the countries with emerging economies and emphasize upon promoting the cellular era through out the Asia.
Proper statistical analysis using the modernized and up to date statistical tools is being used by the company. The company data is properly checked and balance sheets and financial statements are periodically made.
Budgets for all marketing strategies are decided based on previous budgets and if a new strategy is being launched, company discusses it in an open meeting and then the budgets are allocated.