Case Assignment:

AN ENDEAVOR TO GAIN COMPETITIVE EDGE:

A CASE ON BANGLALINKS MARKETING STRATEGY

Submitted to
Md. Iftekharul Amin
Assistant Professor
Integrated Marketing Communication

Submitted by
Group-13: Euphoria
Syed Ibrahim Saajid; ZR-02
Asif Shahriar; ZR-38
Md. Sayedur Rahman; Zr-39

Institute of Business Administration (IBA)

University of Dhaka

April 26, 2014

Evaluate the effort of Banglalink in searching competitive edge?

Answer:
Banglalink used some notable campaigns in its quest for a competitive edge. A competitive edge
is an advantage enjoyed by a company which cannot be imitated by its competitions. At the
moment of re-launching the brand as Banglalink the company had only 3% of the whole
market share but now it enjoys 27 % of the market. It can be safely assumed that its efforts for
achieving a competitive edge contributed to such feat of owning second largest market share.
In the following sections we will discuss the steps taken by Banglalink to achieve a competitive
edge.
The step Banglalink took was creating price disruption in the telecom market. Engaging in a
price war with other telecom operators was milestone strategy for Banglalink. People saw how
the average call rate of 7 taka dropped to 2 taka just because of Banglalink. This strategy
awarded Banglalink much of the market share and eventually gave a position in the mind of the
consumers as the company that offers the lowest call rate.
Again Banglalink positioned itself among the customers as a partner to help in making
difference. Its Din bodol er chestay campaign created a positive awareness among the
consumers. Its efforts to help the consumers in making difference was good marketing strategy
as the brand positioning of the company was clearly perceived in favor of the consumers.
Besides above mentioned campaign other two notable campaigns are ladies first and desh
package. Banglalink addressed the two most growing demographics of the country; the
youngsters and the women. Offering particular services for the first time in Ladies first
package again changed market scenario. Clearly Banglalink was able to create buzz among the
consumers and its competitors.
To address both the urban and rural youngsters Bangalink launched its Desh package with tvc
and print ads in vibrant colors and used well known models who are appreciated among the
young generation. Not only that, the package also offers the lowest rates in all the services the
company provides. Recently it launched a campaign Play especially for urban young people as

this segment needs a different service as internet and other social media is a big part of this
segment.
Banglalink launched campaigns and positioned itself to be the company that caters to the young
people of the country with lowest possible rate. This perception of the being the lowest call rate
provider is the distinction that Banglalink achieved throughout the years.

In which extend Banglalink is able to build competitive edge in mobile telecom services ?
Answer:
In the telecom sector Banglalink holds second largest market share. Banglalink surely evaluated
the options in which it could build its competitive edge and choose the right path by positioning
itself as the brand that is associated with the theme change in life.
To understand the competitive edge that Banglalink strives to achieve, it is necessary to start
with its slogan Din bodol er chestay or Trying to make a difference. Then few days later the
slogan changed into Jekhane din bodol er chesta seikhane Banglalink or Where there is a
difference, Banglalink is there. The positioning the company went for is that it is there to help
the customers to bring positive change in their lives. The company wanted to provide value by
aligning itself with the customer in his need. The company kept its promise to help in making
difference by implementing the price war strategy in its re-launch as Banglalink. The price
cutting strategy is a big milestone in the telecom industry as it totally changed the market
equilibrium. This strategy alone made Banglalink look good on its promise to be a partner in
making difference with their customers.
Among the telecom consumers Banglalink has positioned itself as the brand that provides the
lowest rate in every service in the telecom industry. Its recent campaign Banglalink Dam or
Banglalink Price is actually the result of that perception rather than producing the perception
of being the lowest call rate provider. And that is the competitive edge that Bangalink has
achieved in its marketing efforts. It is that company that has the lowest rate in all the services it
provides.

In Addition what can be done?

Banglalink was quick to grasp the market share by offering a relatively low price in the market
and thereby increasing RMS in the process. However with the maturation of the telecom market
the Company is now burdened with a number of inactive users and high operating cost. Clichd
it might sound but the solution of the issue might just be the one Banglalink had practiced earlier.
The way we communicate has changed dramatically. Traditional telco providers are increasingly
challenged by open Internet platforms that meet diverse, rapidly changing user wants and needs.
Specialized communications apps like Skype are increasingly siphoning conventional messaging
and voice calls away from telcos. Social media too is redefining this century-old industry. It has
not only become a primary communication vehicle for an increasing number of digitally-aware
consumers, but its also allowed consumers to seize control of the decisions and reputation of the
telcos themselves. The web, social media and word-of-mouth dominate traditional channels for
sharing and researching information about telcos,

The researches and studies in the related sector has indicated that with the maturation of
voice market the data market will hold a critical place in determining the overall market
share.. So what can be done is offering a very low price in data compared to the entire
market. Now this offer can be introduced by bundling other services so that low prices in
data can drive the sales of other products with higher margins. Moreover to induce
loyalty such bundles can also be offered with On Contact Smartphones like Verizons
or AT&T do in the united states

Telecom companies need to recognize that consumers are in control and are conducting
conversations in which they may not be included. As such, they must reinvent themselves
in a quest to adapt and remain relevant. Its about getting in tune with todays digital
consumers, becoming part of the digital dialogue to better understand their wants and
needs, then responding with compelling user experiences. In this regard a proactive
presence in the social media is quiet mandatory for any carrier to succeed.

Banglalink has always excelled in delivering the Brand Values. However in the changing
nature of consumers, point of sales and communication channels it must kept coherency
between all the channels. In this way the level of attention and occurrence of action
should increase. Moreover in the changing dynamics consumers regard their freedom and
interactions as the core criteria of choosing a brand. Therefore a virtual platform of
customer service can be created where all the service issues can be sorted out online and
the consumers are allowed to choose their own combination of components of a package

What do you think regarding opportunity cost of focusing on youth?

Most of the telecom carriers in Bangladesh are willing to ramp up the use of social media,
partner with more youth-focused celebrities and brands - especially those with a digital
personality- and continue to ensure its packages are affordable as it looks to capture the youth
market.
Moreover mobile operators are aggressively wooing the youth with low-cost data tariff plans and
freebies as they bet on increased data use by youngsters to revive their sagging profits. Young
people spend more time on mobile phones consuming data than consuming voice and hence
telcos are trying to recover some profit from these markets
However the problem of being too attached to a certain theme is that it runs the risk of failures in
other categories. For example in Banglalink have youth centric offerings, adverts and
positioning. This however entailed that it has little penetration in the corporate market which is
still dominated by GP and interestingly CityCell. Without being solely focused on Youth
Banglalink could have targeted a little bit older TG mainly in the forms of responsible youth. If
we personify brands Banglalink could be imagined as a festive person however it could have
been modified to showcase a young adult who has a profession, passionate about country and
social causes and is festive too. Other issues which could arise are

Too dependent on certain category makes the portfolio risky. For example Airtel is
slowly replacing the Banglalink as youths first choice

It fails operate in markets which could have higher margins

It somewhat negatively affects customer loyalty