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A STUDY ON OVERALL MARKETING ACTIVITIES 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.
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
sim cards. 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 todays Bangladesh, there is no perfect alternative ofGrameen 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.
The marketing department of Khulna University has started on internship/Thesis
program, the practical case of theory for the M.B.A students. As a part of the program, I
have selected this research work on A STUDY ON Overall MARKETING Activities of
OF GRAMEEN PHONE LTD.
1.2 Scope of the study:
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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.
1.3 Objectives of the study:
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.
To observe and evaluate Grameen Phones marketing activities.
2. To extricate its problems.
3. To extricate its diffusion processes through out the society.
4. To measure its Marketing efficiency.
5. To find out the fruitful ways of solving the problems.
1.4 Rationale of the study:
Since its inception Grameenphone has built the largest cellular network in the country
with over 13,000 base stations in more than 7000 locations.
Presently, nearly 98 percent of the country's population is within the coveragearea of the Grameenphone network. Grameenphone has always been a pioneer in
introducing new products and services in the local market.
GP was the first company to introduce GSM technology in Bangladesh when itlaunched its services in March 1997.
Grameenphone was also the first operator to introduce the pre-paid service inSeptember 1999.
It established the first 24-hour Call Center, introduced value-added services suchas VMS, SMS, fax and data transmission services, international roaming service,
WAP, SMS-based pushpull services, EDGE, personal ring back tone and many
other products and services.
The entire Grameenphone network is also EDGE/GPRS enabled, allowing accessto high-speed Internet and data services from anywhere within the coverage area.
There are currently nearly 2.6 million EDGE/GPRS users in the Grameenphone
network.
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Today, Grameenphone is the leading telecommunications service provider inBangladesh with more than 33 million subscribers.
The over all marketing performance of Grameen phone played an important role to make
it the market leader of telecommunication industry in Bangladesh.
1.5 Methodology:
Source of information:
Both primary and secondary data are used as the sources of information that would be
required for the study.
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:
Questionnaire for users, none-users, dealers and other company. Interviewing the
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 Companys daily sales statement.
a Prior research report
a Any information regarding mobile phone.
a Companys leaflet annual report and other publications.
External sources:
a Different books and periodicals on mobile phone.
a Government report.
a Newspaper.
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Data collection method:
In the case of primary data collection, three types of methods are used.
a) Questionnaire survey
b) Interview survey
I have collected most of my information through personal interview. In some cases with
telephone interview. Because full information cannot be collected through the personal
interview, much of the information was not from one member at a time. Thats 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.
Questionnaire Preparation:
Close -ended question is used here.
Sample area:
I have selected Khulna city as my sample area.
Sample size:
From the Khulna city I have selected the following sample for my research project. 90
users and 10 dealers of Grameen Phone and
Sample selection method:
I have used simple Random Sampling.
1.5 Literature Review:
Survival in high penetrating competitive markets by adopting different business strategies
is a vital issue for mobile network operators business. Developed nations are highly
penetrated in this industry having more than 100% penetration where developing nations
are crossing 80% penetration. Bangladesh as a developing country is reaching more than
61% market penetration. There are several studies related to industry life cycle strategies
have reviewed where a few are directly or indirectly related to telecommunication
industry.
Hill (1988) presents a contingency framework in which differentiation can be a means for
firms to establish an overall low-cost position for sustainable competitive advantage.
Klepper (1997) shows that the product life cycle captures the way many industries evolve
through their formative eras, but regular patterns occur when industries are mature.
Camponovo & Pigneur (2002) provide conceptual tools to understand mobile operators
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strategies and objectives and evaluate dependencies of actors and strategies. Another
study of Camponovo & Pigneur (2003) focus strategic uncertainties where most operators
are using large number of strategic approaches for favorable position in the market. They
intend to apply successful business model which is likely to be ones that best address the
economic peculiarities underlying this industry, like mobility, network effects and natural
monopolies. Kim, Park & Jeong (2004) explore that Korean mobile telecommunication
services industry is shifting strategic focus towards retaining existing customers through
the promotion of customer loyalty at its maturity stage. Kurtinaitiene (2005) finds that
there is a positive relation between marketing orientation and enterprise performance in
European mobile telecommunication market. Parrish, Cassill & Oxenham (2006) suggest
niche marketing is an effective strategy for countering price competition in mature
industry through understanding the target consumers. Anderson (2007) observes 85%
new customers are adding in worlds mobile industry from emerging markets.
1.6 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.