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By selection of the company ‘PACIFIC BANGLADESH TELECOM


LIMITED(PBTL)’, we have the intention to:

 Over view the mobile service sector of Bangladesh.


 Present the background of the company.
 Identify the Strength, Weakness, Opportunity And Threat of the company.
 Identify their target market
 Develop the means of market research
 Set up the objectives and goal for the company
 Develop the strategy to accomplish their objectives and goal, set by us
 Highlight the marketing tactics to archive the pre determined objectives
 Do the projections with concern to costs, revenue and budgeting information
for three years
 Draw an over all picture about the effectiveness of the implementation and
controlling tools.

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Bangladesh is a country where there are lots of people has a capability to use mobile

service getting faster their life. As our population is very large Bangladesh can be a

very good market. At present, middle class people are growing very fast and many

mobile service companies are playing a great role to serve this large number middle

class people. CityCell is one of the pioneers to serve the middle class people with

high quality mobile service with fastest communication.

Objective of the Study:

Through this study our objective was to learn how to put a product(service) into the

market with the help of different marketing strategy and to implement our

knowledge of the marketing system in a real world scenario.

Limitation of the study

Since the company was in full working hours and accessibility to divisional

Managers was subject to appointments, we tried to interview the respective officers

and gather as much information as possible but there was little scope to interview
all

the concerned personnel in such a short span of time. Again companies are very

reluctant to disseminate information even though the purpose was academic.

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1. The Company

Pacific Bangladesh Telecom Limited (PBTL) is the first mobile phone service

provider in the Indian subcontinent. The address of the Head office is: “Pacific

Centre” 14, Mohakhali C/A Dhaka 1212. PBTL was founded by Pacific Group

Limited and Hutchison Whampoa Limited. CityCell Digital is the brand name

under which Pacific Bangladesh Telecom provides wireless telecom or mobile phone

service and products to the general populace.

2. Pacific Group Ltd

The Pacific Group is a group of companies under common ownership. The group

has interests in Automobile service (Pacific Motors Ltd.), consumer electronics

(Pacific Industries Ltd.), fisheries (Bengal Fisheries Ltd.), tea (Noyapara Tea

Company Ltd.) and telecommunications (Pacific Telecom Ltd.). This group of

industries was founded by renowned industrialist and current honorable foreign

minister – Mr. M. Morshed Khan.

3. Hutchison Whampoa Ltd

Hutchison Whampoa Limited (HWL) is a Hong Kong-based diversified,

multinational company with its origins dating back to the 1800s. As part of the Li

Ka-Shing group of companies, HWL's ultimate shareholder is Cheung Kong

(Holdings) Limited, which has a 49.9 % interest in the Company. In terms of

market capitalization, HWL is one of the largest companies listed on the Hong Kong

stock exchange. With over 150,000 employees worldwide, the Group operates five

core businesses in 41 countries.

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In October 1990, Hutchison Bangladesh Telecom Limited (HBTL) was formed as a

joint venture between Bangladesh Telecom Limited (BTL) and Hutchison

Whampoa Limited of Hong Kong. In March of that year BTL had been issued a

license by Bangladesh Telegraph and Telecom Board (BTTB) for operating cellular,

paging and other wireless communication networks. The joint venture agreement

with Hutchison gave HBTL the right to use BTL’s cellular license while Hutchison

would provide financial support to BTL.

However, there soon ensued a legal dispute between BTTB and BTL regarding the

refusal of BTTB to provide Public Switch Telecommunication Network (PSTN)

channels which ensured connectivity to the BTTB network. The Supreme Court

then ruled in April 1993 that BTTB would have to provide PSTN connections to

HBTL, but also that BTL would have to transfer the cellular portion to the license

to HBTL. BTTB gave HBTL the PSTN connections in August 1993 and HBTL

began commercial operation of the first cellular telephone service in Bangladesh in

the same month. The owners of HBTL decided to sell their stakes in the company

due to the legal war. HBTL’s shares were divided into two parts: Type A, which was

held by BTL and Type B, held by Hutchison. Each type of share represented 50%

title of HBTL. Pacific Motors Limited bought the type A shares while Hong Kong

based financial investors Far East Telecom Limited bought the Type B shares.

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On 12th February 1996, HBTL was renamed Pacific Bangladesh Telecom Limited.

PBTL uses the brand name CityCell Digital to market its cellular products. In order

to boost the financial and also the managerial strength of PBTL, the shareholders of

PBTL has completed the transaction under the agreements in which Fujitsu

Limited, Japan and Asian Infrastructure Development Company (AIDEC),

established in Cayman Islands, would acquire 10% and 20% equity shares in

PBTL, respectively on June 2000.

With this acquisition of 10% shares in PBTL by Fujitsu Limited, a Global Fortune

500 company, they have further strengthened their presence in Bangladesh and also

have demonstrated confidence as well as their commitment to the Bangladesh

market. Fujitsu has long been supplying Microwave links and telecommunications

equipment to BTTB and is clearly a leading market player in providing

telecommunication solutions in Bangladesh. Being 10% equity shareholder of the

company Fujitsu is in a position to nominate 1 (one) Director to the Board of PBTL

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History in brief
Chronology of CityCell's Achievements
Date Event
Bangladesh Telecom Limited (BTL) was awarded a license to operate cellular,
1989
paging, and other wireless communication networks.
Hutchison Bangladesh Telecom Limited (HBTL) was incorporated in
Apr-90 Bangladesh as a joint venture between BTL and Hutchison
Telecommunications (Bangladesh) Limited.
Apr-93 Agreement with BTTB regarding PSTN links.
Aug-93 1st cellular operation in the South Asian sub-continent
HBTL began commercial operation in Dhaka using the AMPS mobile
Aug-93
technology.
Dec-93 Pacific Motors Limited acquired the entire 50% share holding of HBTL.
HBTL was renamed as Pacific Bangladesh Telecom Limited (PBTL) and
Feb-96
launched the brand name “CityCell Digital” to market its cellular products.
Mar-97 1st to extend coverage to Chittagong
Apr-97 CityCell began commercial operation in Chittagong.
Mar-99 1st to adopt CDMA technology
Apr-99 CDMA technology was first introduced by CityCell.
Asian Infrastructure Development Company (AIDEC) and Fujitsu Limited (FL)
Sep-00
became shareholders in CityCell.
Jan-01 1st to set-up a communications backbone to Chittagong
Apr-01 Dhaka-Chittagong microwave is launched.
CityCell introduced the 15-second pulse rate in the cellular industry of
Nov-01
Bangladesh.
Jan-02 CityCell commences operations in the Sylhet zone.
Value Added Services (VAS), such as 24 hour billing information, news,
Jan-02
services, sports, etc., are introduced.
Mar-02 First operator in Bangladesh to offer off-peak rates.
First operator in Bangladesh to offer prepaid services with two-way PSTN
July-02
connectivity.
CityCell extends coverage to Rangpur, Dinajpur, and Syedpur, the northern
Sep-02
districts of Bangladesh.
Oct-02 Short Message Service (SMS) is introduced.
Jan-03 CityCell launched its services in the major northern business city of Bogra.
Feb-03 First operator in Bangladesh to introduce the One2One post-paid package.
CityCell reaches a coverage level of 40 districts out of a total of 64 (61 districts
Jun-03
eligible).
Jun-03 Network capacity is increased to 240,000.
CityCell introduces “Amar Phone”, a postpaid mobile-to-mobile package
Aug-03
offering the lowest outgoing rate per minute in Bangladesh.
First operator in Bangladesh to introduce IDD and NWD for prepaid
Sep-03
subscribers.
CityCell reaches a coverage level of 51 districts out of a total of 64 (61 districts
Oct-03
eligible).
CityCell’s 24-hour customer call center opens. Network capacity is increased to
Nov-03
280,000.
Year-end active mobile subscriber base reaches 179,058 with coverage in 51
Dec-03
districts.
Mar-04 CityCell opens its customer service centres 7 days a week countrywide.
June-04 CityCell launches RIM based handsets.

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CityCell packages are focused to follow the company’s differentiation strategy.

There area number of market segments into which CityCell’s potential and current

customers can be divided. PBTL always strives to make each CityCell package

released to be unique and noticed above that of the competition. They also try to

attain distinctness in their sales and marketing strategy to make them seem like a

unique, ‘blue-blooded’ mobile phone company. In order to do this, they have made

a number of strategic choices which may set them as being different from other

companies; they also handicap them in a significant manner.

The primary strategic choice that has affected them is such a manner is their choice

of technology. Although CDMA technology is far in advance of other technologies, it

has yet to gain a significant acceptability in Bangladesh. Thus what has happened is

that there is a serious shortage of CDMA sets and, as knock-on, effect higher price

of the sets that are available. Worse, many sets are simply lying around due to lack

of spare-parts. Customers have to pay line rent for faulty or dead sets. Many

customers are disconnecting their CityCell lines and buying cheaper packages from

other companies. The detrimental effect this has had on operations is that PBTL is

finding increasingly less room to maneuver and introduce new features in their

service which will help them combat competition. This also means that they have to

fight for survival rather than for dominance. Inherently, PBTL’s strategies appear

to be more reactive than proactive. A very important aspect of current operations is

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the severe effect that centralization of organization has on operations. The regional

offices are responsible for handling phones only in that zone. There is a severe lack

of coordination between the various regional offices which has a detrimental effect

on customer satisfaction. Worse, the entries for each zone are done all on one floor

in the head office at the vast majority of customers buying their sets directly from

PBTL, it means that they are also dependent on PBTL for repairs and spare part

needs. Thus the current staffs who work at repairs and servicing are severely

overworked. This affects morale and employee satisfaction, reducing the efficiency

of set-servicing process and thus has results in dissatisfied customers. In all PBTL is

a company with immense potential, but it remains to be seen whether management

can fully harness this potential. The potential is present in all the factors of

operations:

1) The technology is very advanced and has immense potential

2) The labor factor is strong with some very capable staff

3) PBTL has sufficient capital to undertake infrastructure investments

4) There is still a significant portion of goodwill towards the company from

its stakeholders

What PBTL needs to do now is to harness all these positive factors, negate the

detrimental ones and move forward.

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Mission

PBTL’s mission statement is “The most successful cellular, paging and other

wireless service provider in Bangladesh by virtue of having greater operating

expertise.” This mission statement puts into perspective a few points about CityCell

Digital. Their inherent emphasis is on quality not cheapness of service. The first

priority is to provide a high end service that can be used for both commercial and

personal use.

Vision

The Vision of the company is “To continue to be the leader in the Telecom industry

in the region and provide a complete communication solution to our customers with

a smile.” It may be noted that there is an emphasis on strong customer relations.

This is important to CityCell especially as, until recently, they positioned their

packages as high end packages. This means that they need to promote their

packages especially to corporate and business users. Such customers will require

strong support for brand loyalty to develop.

Objectives

1. Qualitative Objectives:

# Increasing service offerings.

# Expanding the network.

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#Creating innovative, unique, and cost-effective various products to

customers.

# Increasing loyalty by focused customer retention program.

# Develop operational procedure for the fast deployment of service.

2. Quantifiable objectives:

# Increase subscriber base over 27 lacks on the network by Dec 31, 2005.

(THE DAILY STAR,26TH NOVEMBER,2004,PAGE-08,CL-02).

# 99.5% overall network availability.

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CONTROLABLE FACTORS (4P’s)

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1. Product

(a)Product Category

Pacific Bangladesh Telecom Limited is holding a product category of 2. They are

post-paid service,pre-paid service.It has several products under every product

category.

(b) Product Line:

The product length that is some products under different categories are stated as

follows:

Post Paid Packag

1.‘CityCell 1000’ (Regular): Commercial/ Business/ Personal use by high income

consumers. This product can reach the Local T&T, NWD, IDD and all Mobile

service across the country. It is one of the old packages of CityCell Digital. Still this

package is being provided to many high income group consumers. Both small and

large institutions and organizations subscribe the service as their needs.

2. CityCell 500’ (Regular): Commercial/ Business/ Personal use by high income

consumers. This product can reach the Local T&T, NWD, IDD and all Mobile

service across the country. This is one of the regular packages which have the most

number of subscribers. This package is known and admired to all. The subscription

fee and the tariff are affordable than the other mobile operators are offering. These

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days not only high income group but also high medium and medium income groups

also use this service because of the lowest billing rate offered by CityCell Digital.

3. ‘Shabar Phone’ (Mobile to Mobile with T & T Incoming and Limited Outgoing):

Personal use by middle income consumers. Significant number of customers is

having this subscription. It is very popular among students and medium salaried

servicemen and a good number people from different occupation are using this line.

4.. ‘Amaar Phone’ (Mobile to Mobile): Personal use by mainly medium income

consumers. Though not widely used but still this option is open for a group of people

who just want mobile to mobile connection in low rate.

5. ‘Tellular’ (Fixed Wireless Telephone): Commercial/Business use by commercial

institutions and business organizations. This package has been mostly used in village

area, but recently we have seen that in city area many people using this service for

mobile to mobile business because of low rate. High frequency antenna help the

FWT sets to reach signals beyond the service area.

Pre Paid Packages

1.‘Aalap 24’ (Mobile to Mobile with T & T Incoming and Outgoing): In this

option customers are given T&T incoming and out going facilities. Here a

person can receive a call from T&T, NWD or IDD call with flat rate, which is

the first in Bangladesh. Along with this incoming facility customer can also

call some one within the zone to the T&T land phone.

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2 ‘Aalap B’ (Mobile to Mobile): In this option customer will have only mobile to

mobile facility. This option is offering pre-paid mobile in a low rate.

3.’Aalap Call Me( Mobile to Mobile with T & T Incoming and Outgoing):
Aalap Call Me is a full BTTB connectivity package with the unique and innovative
call2cash feature.It gives the subscribers Access to any mobile in Bangladesh, 24
hour BTTB local/NWD/ISD connectivity Under the call2cash feature Aalap Call Me
subscrivers will get Tk. 0.25 added to their account every minute when they receive
calls from other CityCell phones ,Freedom to choose up to 3 CityCells number and
make calls at 50% reduced tariff under One2One scheme andCityCell to CityCell
SMS at a reduced rate of Tk. 1.50 .

4%

36%
31%

Citycell 1000
Citycell 500
SobarPhone
Amar Phone
29%

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10%

Aalap
24&CALLMe

Aalap B
90%

2. PRICE

CityCell 1000 (Normal Scenario):

Monthly Subscription charge Tk. 1000


Peak (8AM- Off-Peak (8PM–
Outgoing Rate S-O-P (11PM–8AM)
8PM) 11PM)
To Mobile (Zonal) 3.00 3.00 1.50
To Mobile
8.00 8.00 8.00
(Interzonal)
To T&T 3.00 + BTTB 3.00 + BTTB 1.50 + BTTB
Incoming Rate
From T&T 2.00/min 2.00/min 1.00/min

CityCell 1000 (Roaming Scenario):

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Monthly Subscription charge Tk. 1000
Outgoing Rate Flat Rate
To Mobile (Zonal) 3.00
To Mobile (Interzonal) 8.00
To T&T 3.00+BTTB
Incoming Rate
From T&T 3.00

CityCell 500 (Normal Scenario):

Monthly Subscription charge Tk. 500


Off-Peak (8PM-
Outgoing Rate Peak (8AM-8AM) SOP (11PM-8AM)
11PM)
To Mobile All Mobiles 4.00 3.00 1.50
To T&T, NWD, IDD 4.00 + BTTB 3.00 + BTTB 1.50 + BTTB
Incoming Rate
From T&T 3.00/min 2.00/min 1.00/min

CityCell 500 (Roaming Scenario):

Monthly Subscription charge Tk. 500


Off-Peak (8PM-
Outgoing Rate Peak (8AM-8AM) SOP (11PM-8AM)
11PM)
To Mobile All Mobiles 4.00 3.00 1.50
To T&T, NWD, IDD 4.00 + BTTB 3.00 + BTTB 1.50 + BTTB
Incoming Rate
From T&T 3.00/min 2.00/min 1.00/min

Sobar Phone (Normal Scenario):

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Monthly Subscription charge with CLI Tk. 250
Outgoing Rate Peak Off-Peak SOP
To Mobile (Zonal) 4.00 3.00 1.50
To Mobile
6.00 5.00 5.00
(Interzonal)
To T&T N/A 3.00 + BTTB 1.50 + BTTB
Incoming Rate
From T&T 3.00/min 2.00/min 1.00/min

Sobar Phone (Roaming Scenario):

Monthly Subscription charge with CLI Tk. 250


Outgoing Rate Peak Off-Peak+SOP
To Mobile (Zonal) 4.00 3.00
To Mobile (Interzonal) 6.00 5.00
To T&T N/A N/A
Incoming Rate
From T&T 6.00 4.00

Mobile to Mob(Nation Wide Roaming Scenario):

Monthly Subscription with CLI Tk. 200 Nation Wide Roaming


Outgoing Peak (8AM–8PM) Off-Peak (8PM–8AM)
To Mobile 5.00 4.00
Pulse 15 sec. applicable from 2nd minute

Tellular (Fixed Wireless Telephone):

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Monthly Subscription Fee Tk. 250
Outgoing Rate Per Minute
To Mobile (Within Zone) 2.50
To Mobile (Other Zone) 5.00
To T&T, NWD, IDD 2.50 + BTTB
Incoming
From T&T, NWD, IDD 1.50/min
From Any Mobile Free!

‘Aalap 24’:

Outgoing Rate Peak Off-Peak


To Mobile 6.00 5.00
To BTTB N/A 4.00+ BTTB
Incoming Rate
From any Mobile Free Free
T&T 3.00 2.00

‘Aalap B’:

Outgoing Rate Peak Off-Peak SOP


To Mobile 5.00 4.00 2.00
Incoming Rate
From any Mobile Free Free Free

Alap Call Me(Cash2Cash)

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Outgoing Rate Peak Off-Peak

To Mobile 6.00 5.00

To BTTB 5.00+BTTB 4.00+ BTTB

Incoming Rate
From any Mobile Free Free
T&T 3.00 2.00

# Freedom to choose up to 3 CityCells number and make calls at 50% reduced


tariff under One2One scheme
# CityCell to CityCell SMS at a reduced rate of Tk. 1.50

3. PROMOTION

1.Product Promotion:

This Company is responsible for the process of promoting CityCell products and

also designs of new packages. This is done after extensive market research and

understanding the requirements of each targeted market segment. The chief

responsibility of this department is logically, promotion and communication of new

products and product ideas to customers both directly through selection of

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advertising media, then dissemination of information by means of advertisements;

and indirectly through dealers by providing them with promotional material. This

division is also responsible for public relations which do not include corporate

relations. This is handled, as we have seen, by other departments. The responsibility

of this department is immensely important especially in the introduction stage of a

package for customers. They also provide help for other departments such as the

front office and services marketing in order to promote CityCell packages to both

current and new customers. This helps very much in handling cases of dissatisfied

customers and also in case of adjusting customers with old packages who have to be

convinced to upgrade their packages to the new ones on offer. The company sub-

contracts its promotional materials production to local companies. A regular

number of events are held to integrate promotional activities with public relation

exercises to enhance the image of CityCell digital and better promote the packages

on offer.

2. Product Design:

This division is responsible for the design of packages and the fixing of tariff rates

which are actually the rates of usage for each package. This department is also

responsible for the coordination of market research for the whole company. They

will integrate knowledge gleaned from extensive market research into the design of

new packages that fulfills the needs of customers. This is done very frequently as the

needs of even the most stable of customer segments change and the company has to

change the tariff structure of its offered packages accordingly.

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4. DISTRIBUTION

Distribution channel is the bridge between the company and the consumers.

Distribution channel is very important for any company. If there is any gap in

distribution channel the marketer is unable to reach its product and services to the

customers in time.

In the beginning, CityCell decided to distribute through their own distribution

channel. As the market is growing fast, it is giving dealership to sell the mobile to

the direct customers. There are many interested people who want to become

distributor of CityCell Digital. But CityCell has some strict policies that are

maintained when the dealership is given.

In recent days CityCell has signed agreement with established distribution channels

like Singer Bangladesh, Rangs, Flora who are also acting as CityCell Digitals

distributors.

Channel Management:

This division is responsible for channel management has the very important job of

setting up marketing channels by which packages are distributed among clients and

by which feedback is obtained from customers. This department is responsible for

the selection of new dealers and motivating them and current dealers to promote

CityCell packages to their customers in their respective areas. This department is

also responsible for seeing that there is an excellent support network for each dealer

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and that they are satisfied with their monetary or otherwise remuneration. Each

dealer is a business partner and not a surrogate arm of the company. They are given

the marketing tools to act as if they were branches of CityCell in their respective

areas. This department is also responsible for checking that each dealer does not cut

into the sales of another dealer in a very proximal region.

Corporate and Direct Sales:

This Division is responsible for corporate customer relations. Corporate customers

are given high priority in terms of sales and also in terms of after sales service. Of

course this is due to the high usage and need for good long term goodwill with such

corporate clients. This department however deals mainly with sales to corporate

customers and maintenance of relations with both current clients as well as scouting

out potential new corporate clients, whereas the after sales service and other issues

are dealt with by the customer services operations section of the company. Selling

product to the general customers is also controlled by this division. Direct sales

division is also responsible for direct face to face inquiry by the general people who

every day visit the Head Office.

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Chief Marketing Officer

Sales Marketing

Corporate and Direct Sales Channel Management Product Promotion Product Design

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C h a ir m a n

M a n a g in g D ir e c t o r

A d v is o r

E n g i n e e r i n g S a le s & F i n a n c e &C u s t o m e r S e Br v i l i l c i ne g & A c c o u n t s A d m i n i s t r a t i o n


M a r k e t i n g C o m m e r c i aO l p e r a t i o n I T

D i r e c t o r E n g gS r V P V P V P S r V P
V P

C T O V P A V P A V P A V P A V P
( F i n a n c e )( C o m m e r c i a l)A V P

G M A V P E x e c u t i v e E x e c u t i v e S r E x e c u t i v e
S r E x e c u t i v e

V P S r E x e c u t i v Oe f f i c e r E x e c u t i v e E x e c u t i v eS r E x e c u t i v e
E x e c u t i v e ( S t o r e )

A V P E x e c u t i v e O f f i c e r O f f i c e r E x e c u t i v e
O f f i c e r

S r E x e c u t i v e S r O f f i c e r

E x e c u t i v e O f f i c e r

T e c h n i c a l o f f i c e r

Basic Organogram of Pacific Bangladesh Telecom Limited

UNCONTROLABLE FACTORS

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1. Competition:

There are 3 another mobile service companies (GP,Aktel,BanglaLink) operating in

the mobile servicing industry and all the 3 companies who are working in a stable

way. Among these 3 companies Pacific Bangladesh Telecom Company is a fast

growing company and their direct competitors are those companies who are also

fast growing. In terms of precision Grameen Phone and Aktel are the largest

competitors as they altogether captures 80% of the market. But these two

companies have reached the peak of its sales and companies like PBTL is trying to

outsource their market shares.

2. Economical Factors:

The economy of Bangladesh is not favorable for any business. The economy depends

on a lot of things and these things sometimes shake the expectations of the

companies. PBTL also face economical problems.

Other economical factors like; taxation, inflation or devaluation of taka also affects

the company. These economic factors play a great role in the decision making part

of the PBTL

3. Political Factors:

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Political hassles are one of the greatest obstacles in the business of PBTL. The strike,

political pressure or political propaganda affects the business of PBTL. If there

occurs a strike that affects the distribution of the products of PBTL and that can be

very harmful for the business.

Moreover, there are some political pressures on the industry. The government

people should be kept happy to run a smooth and sound business. So, bribing and

some other unethical means are required here. PBTL follows a situation demand

based policy and that policy helps it to deal with the political factors successfully.

But it is always a concern that needs to be taken care of carefully.

4. Laws and Regulations:

It is a very important factor for PBTL. It has to follow a lot of rules and regulations.

These rules or regulations are imposed by Bangladesh government, . According to

their rules, GPL has to do a lot of things. Like; PBTL can not go for charging price

of their product. So, these rules affect the business of PBTL a lot.

The government also itself imposes lots of rules. Like; tax rules and others, which

must be maintained very carefully to run the business carefully. The quality control

regulations are also very important for PBTL though they excel in this department.

So, for keeping a better business environment it is very important to follow all the

rules and regulations

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SWOT stands for Strength, Weakness, Opportunity, and Threat. This is a very

important tool for a company to analyze its internal external environment. Now, we

will see a SWOT analysis of CityCell Digital.

STRENGTH

1. Capital: CityCell Digital has a huge amount of capital. As mentioned before,

that the Pacific Group which is a well established local organization of $1000 million

owns 90% shares of PBTL, it was never required to borrow loans from outside or

other investors.

2.Competitive price: Price is a big competitive advantage for CityCell Digital.

CityCell Digital is the only organization which is selling CDMA mobile phones with

both way T&T facilities(HULUSTUL OFFER) at the lowest rate. For example,

lowest package rate of CityCell is Tk 4,999/= with T&T facilities(Local,ISD &

NWD). With T&T facilities the other competitors are no where near CityCell.

3. No ‘Busy Network’: Because of enormous number of channels, excess to


CityCell mobile phones is very easy. The rate of call drops is very low.

4. Advanced technology: CDMA technology is the best technology for

telecommunication. World class mobile operators and world class mobile phone

manufacturers are advancing to this new technology. CityCell is one of the few

mobile service providers which are using CDMA technology. Where as other GSM

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mobile service provider has to make huge invest or will need time for

transformation.

5. Low Cost: CityCell follows low cot strategies. It tries to cut cost in every

possible way to maximize the strengths for future battle.

6. Centralization: Pacific Bangladesh Telecom Limited is a centralized

organization that helps in easier coordination of business activity

7. Dedicated Staff: Dedicated core staffs who are willing to provide significant

labor hours to accomplish targets.

WEAKNESS

1 Fewer staff: The number of staffs working for CityCell is not enough at all. Far

fewer staff than actually required in terms of tasks to be completed.

2. New technology: CDMA is the latest technology but it is not widely used. Still

most popular option is GSM. CityCell can not give international roaming because of

few number of CDMA operator.

3. Low network coverage: Though CityCell Digital started to provide mobile

telecommunication ten years back, it is still in behind the other operators from the

point of nationwide coverage. Grameen phone was able to use the optical fiber

network of Bangladesh Railway trough strong lobbing with past government for

next twenty five years. That’s why Grameen phone’s expansion was huge. Where as

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PBTL has decided to cover fifty two districts within June, of which eighty five

percent was has been done.

4. Lack of education: The subscribers are not educated enough to handle

sophisticated CDMA mobile handsets effectively. That’s why proper knowledge is

essential to handle these mobile sets.

OPPURTUNITIES

1. Advanced technology: Since CDMA technology is the latest in the wireless

telecommunication industry and most effective one, it is yet to find new potential in

the short future.

2. Secured data transfer: Secured data transfer means CityCell has the

potential to be the leading player once m-commerce took off.

3. Leader ship in telecommunication services: Bangladesh government has

already started to provide license to private sectors to set up land phone. With full

nation wide coverage and a huge capital it is possible to become the market leader

for CityCell Digital.

4.Growing middle class population:

In present condition, the middle class population are growing. By reducing price the

company can attract a huge amount of middle class people. Because they can

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realize that now a days, mobile is essential.So,it is a great opportunity for CityCell

to attract a large amount of customer.

THREATES

1. New companies: If ‘SingTell’ of Singapore and ‘Airtell’ of India enter the

market with full coverage and low price, ten not only CityCell but also other mobile

operators would be in great trouble.

2. Global companies: In India global companies like ‘AT&T’ of the United

States and in Eastern Asia ‘Vodaphone’ of the United Kingdom is working well.

They might think to enter Bangladesh with higher capital. If so it will be a huge

threat for CityCell.

3. Governmental regulations: In Bangladesh, the telecommunications market is

still own by the state-owned BTTB. They are entering the mobile phone market.

Thus they will not take kindly to new companies entering the industry. This may

make them influence the government to introduce new legislation designed to

restrain the business activities of new companies.

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4. T&T mobile phone: T&T is entering into the mobile telecommunication

industry which first provive “TeleTalk”. It might come to the business with unfair

Government advantages and cause severe problems to all other mobile phone

operators.

5. Threat of substitute products: For CityCell Digital the threat of substitute

products is very real. Many customers prefer to use Grameen phone & AKTEL

above that of CityCell Digital primarily for the network reach.

Now,Banglalink(Sheba)is offering very low charge of call, low set price, offering new

features and services that also becomes a threat for CityCell.

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The company has been examined from the theoretical perspective of Market

Segmentation, Target Marketing and Positioning of a service- oriented firm.

Market Segmentation of a service company is “The division of the overall market for

a service into groups with common characteristics”. Each divided group of customers

are referred as market segments. The market segment chosen by the company to

serve is called Target Market. So all target markets are market segments but all

market segments are not target markets.

Why Market Segmentation?


The marketing concept calls for understanding customers and satisfying their needs
better than the competition. But different customers have different needs, and it
rarely is possible to satisfy all customers by treating them alike. Market
segmentation is the identification of portions of the market that are different from
one another. Segmentation allows the firm to better satisfy the needs of its potential
customers.

1. Clearer understanding of the needs and wants of selected customer groups.

2. More effective positioning.

3. Greater precision in selecting promotional vehicles and techniques

Limitations of Segmentation:

1.More expensive than using a non-segmented approach.

2.Difficult to select the best base for segmenting a market.

3.Difficult to know how finely or broadly to segment.

4.Tendency to appeal to markets that are not viable.

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Segmentation Process for Service Companies:

1.Identify Customer needs and company offerings

2.Develop Bases for segmenting the market

3.Develop Profile of Resulting Segments

4.Develop Measures of Attractiveness

5.Select Target Segments

6.Develop Unique Marketing Mix for each segment

Bases for Segmentation:

Consumer markets can be segmented on the following customer characteristics.


1.Geographic
2.Demographic
3.Psychographic
4.Behavioral

Segmentation Approaches:

1.Single-stage segmentation (one base).

2.Two-stage segmentation (two bases).

3.Multi-stage segmentation (three or more bases).

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Requirements of Effective Segmentation:

1.Identifiable: Unique customer groups with homogeneous needs

2.Measurable: Market size in terms of population with purchasing power

3.Substantial: Large enough to generate profit

4.Accessible: Easy to reach

5.Durable: Long run feasibility

5.Competitive: Moderate rivals to generate demand

6.Actionable: Eligible to run marketing programs

Evaluating the Market Segment for Market Targeting:

1.Segment Size and Growth

2.Segment Structural Attractiveness

3.Company Objectives and Resources

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Market Segmentation and Target Marketing

Customer Needs National/International Short and Long Distance Calls

Market Segments Individual and Corporate

Segmentation Pattern Clustered Preferences

Approach to Segment Multi-Stage Segmentation (several bases)

Bases for Segmentation


For Individuals
Geographic: Divided the country into 3 divisions
Demographic: Age, Income, Social Class
Psychographic: Image, Status
Behavioral: Benefits, Usage rate
For Corporate:
Demographic:
Industry, Company Size, Location

Target Market
For Individual

Geographic: Dhaka, Chittagong, Sylhet


Demographic: Age (18 and above), Income (10,000+),
Social Class (Middle and above)
Psychographic: Image (Possessiveness)
Behavioral: Benefit (T&T facility, cheaper RIM), Usage
rate (lower than GP & aktel)

For Corporate

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Demographic:
Industry: Multinationals, UN Mission, Large
Manufacturers, Government
Company Size: Employees more than 50
Location: Dhaka and Chittagong

Evaluation of Target Segment Size: Millions


Market Growth: Introducing stage of PLC with ample scope
Structural Attractiveness: Moderate Competition,
purchasing power of buyers, Increasing middle class
population, Government support
Company Objectives and Resources: Profitability and
Creating Brand equity as well reach every household in
course of time

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Before designing the research it is required to define the information needed to
carry out the research. From our purpose of the report and research questions we
could understand that we have to collect the information on the different
determinants of CityCell’s service performance, customer acceptance and service
quality. Hence our focus group is the company and its employees.
Since the research is undertaken to get an in-depth knowledge of the market
segmentation, target marketing, positioning and performance, a small scale
exploratory research has been implemented to understand the pros and cons of the
company and its standing in the industry compared to its competitors with respect
to brand loyalty.

METHODOLOGY
Following methods were used to conduct this market research.

Data Collection Method

Primary Data:
1.Survey through Questionnaire by marketing officers of CityCell.
2.Formal and informal discussion with CityCell users.
3.Formal and informal meeting with managers and executives of CityCell..

Secondary Sources:
1.Organization’s leaflets, and other published articles
2.Newspaper
3.Text books
4.Internate

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In order to facilitate the research findings, four different research questions have
been set to derive the expected information.

Research Questions

1.What core services and customer services do CityCell offer to the customers?

2.What are bases of segmenting the market? What is the Target Market?

3.What are the marketing mixes offered for target markets?

4.What has been the performance of CityCell till now?

Data Analysis Techniques


Graphical presentation (pie-chart, graph, histograms etc.) used for analysis of the
report.

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Objectives

1.Assuring 1650000 users within 2008.

2.Extend the network coverage in the whole Bangladesh by the year 2006.

3.Ensuring full customer satisfaction.

4.To make mobile phone available to every level of people.

5.Increase market share by 4% within 2007.

6.Their another objective is to serve the society by contributing in various social


activities.

Goals:

1.To bring all the people of Bangladesh under one roof.

2.To be ahead of the competition among the competitors.

3.Providing various types of choice for different kind of consumers.

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- 50 -
Functional Level Strategy

PBTL’s focus is on efficiency, quality, innovation, and customer responsiveness.

Business Level Strategy

PBTL applies both the cost leadership and differentiation strategies as their

business level strategies.

Corporate Level Strategy

PBTL follows related diversification as their corporate level strategies.

Product attributes:
We are going to launch a new package which will provide various facilities like low
call charges as well as low sms charges,besides in this package the time of off peak
hour will increase surprisingly also will provide good networking system.Besides
this facilities this will also provide previous facilities like
1) Call forwarding
2) Sms
3) 3 party conference
4) One 2 one.
5) Voice mail service.
CallForwarding
Call Forwarding lets you forward your number to any mobile or T&T phone number to
receive your calls through that number. Even if you are traveling abroad, you can forward
your calls to a designated number outside the country to always stay in touch.
Also provide some value added service

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SMS(ShortMessageService)
Stay in touch with your friends and family through SMS. SMS is automatically
available for all CityCell customers and does not have to be specifically activated.
All you have to do is choose the message option on your phone, write your message
in the message field and send it to the desired number. This service is available for
messages sent to other CityCell customers and to Grameen Phone customers

Voice Mail Services


Never miss any important calls and messages with CityCell VMS. Whenever you
cannot answer a call or need to temporarily switch off your phone, people can still
leave a message for you in your voice mailbox. You can listen to your messages
whenever it is convenient for you and get back to the caller later.

One2One
With CityCell One2One you can register up to three* other CityCell numbers and
pay only 50% of your normal tariff whenever you call these numbers. And now you
can even manage your One2One numbers conveniently via SMS. Simply follow the
steps below to add, review and make changes to your One2One calling list

1. Dial 120 for Billing Status

2. Dial 122 for News Update

3. Dial 123 for Sports News

4. Dial 124 for Flight Schedule

5. Dial 125 for Train Schedule

6. Dial 786 for Prayer Timings

7. Dial *999 for Police Defense

8. Dial *505 for Hospital and Ambulance Services

9. Dial *911 for Fire Brigade Service

10. Dial *101 Home Delivery Food Service

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11.Dial *800 for Pre-Paid Service

12. Dial *888 to Recharge Pre-Paid Cards

13. Dial *811 to know the Pre-Paid Balance

Product life cycle


Product Life Cycle

4
3.5
3
Sales in ml.

2.5
2
1.5
1
0.5
0
1989 1990 1993 1996 1997 1999 2000 2001 2002 2003 2004
Y ears from Int roduction

Starting from introduction they invest a very high initial cost.At first its growth was

good because at that time they have no other competitor. They are the first mobile

service provider in Bangladesh.But after several years their sales are decreasing

because at that time GP entered into the market with a better service provider than

CityCell.It was continued for several years because of coming Aktel and

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Seba(Banglink).But now they are standing in growth situation by providing various

kinds of facilities like reducing call charge, new attractive offer, contributing social

work,coming sim system etc.

MARKET SHARE GROWTH MATRIX

Star Problem Child

? ?
High

Low
Cash Cow Dog
? ?
High Low

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Star product: In this product category the market share is high and the market
growth is also high. Here, The investment and revenue is also high this process is
followed by EOS system.

Products under this category:


1.Alap 24 ( prepaid)
2.Citycell 500 (postpaid)

Problem child: New launched products are mainly categorized under this
method. Here, the market growth is high and market share is low.No EOS system
has been introduced here.

Products under this category:


1.Alap call me (pre paid)

Cash cow: Under this category the market growth is low but market share is high
and the investment amount is low but the amount of revenue is high. This method
follows EOS system.

Products under this category:


1.Alap B (Prepaid)
2.Amar phone (postpaid)
3.Shabar phone (postpaid)
Dog product: Under this category both the market share and market growth is
low. Here, the investment amount is high.

Products under this category:


1.Citycell 1000 (postpaid)

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From this project we refer the company to follow the following tactics to hold the
market share more strongly. This is viewed on the basis of 4 Ps(Product, Price,
Promotion, Distribution )

Product:
1.For students they can launch new packages
2.For prepaid packages if a user buy a 2000 taka cash card he will get 35 taka
talk time free & for 1000,1500 taka cash card users will get 25 taka talk time
free.
3.The company should change the off-peak time from 8 pm to 11 pm to 4 pm to 6
pm. The company can provide attractive set in new packages with reasonable
price.

Price:
The company should change its present call charge strategy. The
should reduce their present call charge.
CityCell 1000 (Normal Scenario):

Monthly Subscription charge Tk. 1000


Peak (8AM- Off-Peak (8PM–
Outgoing Rate S-O-P (11PM–8AM)
8PM) 11PM)
To Mobile (Zonal) 3.00 2.00 1.50
To Mobile
6.00 6.00 6.00
(Interzonal)
To T&T 2.00 + BTTB 2.00 + BTTB 1.00 + BTTB
Incoming Rate
From T&T FREE FREE FREE

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CityCell 1000 (Roaming Scenario):

Monthly Subscription charge Tk. 1000


Outgoing Rate Flat Rate
To Mobile (Zonal) 3.00
To Mobile (Interzonal) 6.00
To T&T 2.00+BTTB
Incoming Rate
From T&T FREE

CityCell 500 (Normal Scenario):

Monthly Subscription charge Tk. 500


Off-Peak (8PM-
Outgoing Rate Peak (8AM-8AM) SOP (11PM-8AM)
11PM)
To Mobile All Mobiles 3.00 2.00 1.00
To T&T, NWD, IDD 4.00 + BTTB 3.00 + BTTB 1.50 + BTTB
Incoming Rate
From T&T FREE FREE FREE

CityCell 500 (Roaming Scenario):

Monthly Subscription charge Tk. 500


Off-Peak (8PM-
Outgoing Rate Peak (8AM-8AM) SOP (11PM-8AM)
11PM)
To Mobile All Mobiles 4.00 3.00 1.50
To T&T, NWD, IDD 4.00 + BTTB 3.00 + BTTB 1.50 + BTTB
Incoming Rate
From T&T FREE FREE FREE

Sobar Phone (Normal Scenario):

Monthly Subscription charge with CLI Tk. 250


Outgoing Rate Peak Off-Peak SOP
To Mobile (Zonal) 3.00 2.00 1.00
To Mobile
5.00 4.00 4.00
(Interzonal)
2.00 +
To T&T N/A 1.50 + BTTB
BTTB
Incoming Rate
From T&T FREE FREE FREE

- 58 -
Sobar Phone (Roaming Scenario):

Monthly Subscription charge with CLI Tk. 250


Outgoing Rate Peak Off-Peak+SOP
To Mobile (Zonal) 3.00 2.00
To Mobile
5.00 4.00
(Interzonal)
To T&T N/A N/A
Incoming Rate
From T&T 4.00 3.00

Amar Phone (Nation Wide Roaming Scenario):

Monthly Subscription with CLI Tk. 200 Nation Wide Roaming


Outgoing Peak (8AM–8PM) Off-Peak (8PM–8AM)
To Mobile 4.00 3.00
Pulse 15 sec. applicable from 2nd minute

Tellular (Fixed Wireless Telephone):

Monthly Subscription Fee Tk. 250


Outgoing Rate Per Minute
To Mobile (Within Zone) 2.00
To Mobile (Other Zone) 4.00
To T&T, NWD, IDD 2.00 + BTTB
Incoming
From T&T, NWD, IDD FREE
From Any Mobile FREE

Aalap 24’:

Outgoing Rate Peak Off-Peak


To Mobile 5.00 4.00
To BTTB N/A 3.00+ BTTB
Incoming Rate
From any Mobile Free Free
T&T FREE FREE

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‘Aalap B’:

Outgoing Rate Peak Off-Peak SOP


To Mobile 5.00 4.00 2.00
Incoming Rate
From any Mobile Free Free Free

Alap Call Me(Cash2Cash)

Outgoing Rate Peak Off-Peak

To Mobile 5.00 4.00

To BTTB 4.00+BTTB 3.00+ BTTB

Incoming Rate
From any Mobile FREE FREE
T&T FREE FREE

1.In some special occasions like Eid or Valentines Day they can reduce the call
charges as well as sms charges.

2.They should increase the amount of per minutes pulse. Now they have only two
pulses in a minute but they should convert into three.

3.For postpaid users if a users bill comes over 5000 taka then he will get 5%
discount on the total bill.

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Promotion:
1.RIM(Removable user Identity Module) should be promoted.
They should increase the coverage system for RIM.
2.They are going to invest 2000000 taka for promotional activity.
From that amount a large portion should be invested in promoting
the new package “ALAP CALL ME” as it is still a problem child
and some portion of the amount should be invested in promoting
RIM.
3.They should increase sponsorship and social welfare activities.

Distribution:
1.Normal distributors should be paid some commission
on basis of their selling activities.
2.Distributors of remote areas should get the opportunity
to pay according to their sales

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2008
2007
Pick point
2006

Market
share

Over the year


Projection for the next three years

To achieve the pick point target of the projection scale we advise the marketing
department to work as a whole, which is called the MBO (Management By
Objective) process.

Budgeting: Budgeting is done across the board with forecasting depending on

engineering’s plans for expansion. Budgeting is done yearly and on a 3 year plan.

CMO:

The office of the Chief Marketing Officer (CMO) is responsible for

coordination of marketing activities across the company and to provide top

level management with an overall picture of the market situation.

Marketing and Sales:


Major marketing goal is to capture a significant market segment that will yield

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maximum revenue by means of passing on directly or indirectly high end cellular

phone service. Many clients provide telecom services to their locality by Tellular or

Fixed Wireless package. The rates of this package may be low but this is offset by

the high frequency of usage and the strong support claimed to be provided by

CityCell.

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The advent of cellular technology in Bangladesh has brought immense change in the

field of communication. Due to weak infrastructure and inadequate resources the

incumbent competitors are finding it hard to meet the growing demand of the

customer sustaining the competitive advantages over each other. Since its inception

in 1990, CityCell has done well to enhance its customer loyalty operating as a

market challenger in this oligopoly industry. It has segmented the market based on

certain clustered preference deploying multi-stage segmentation approach to meet

individual needs of the customers. But the industry is hyper-competitive and

dynamic,CityCell has decided to extend its service line in order to better meet the

customer demand and sustain in the competition.CityCell’s forthcoming service

extension will create a significant impact on its rivals operating In the same location.

Launching of its new services would also close its existing service gaps to a great

extent ensuring satisfaction and loyalty.Morever,emphasis has to be given on the

relationship marketing and service delivery to retain strong position in the target

markets ensuring brand and value equity.

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