chapter one Introductory part 1. 0Origin of the report This internship report was assigned as a partial requirement for the completion of the BBA Program of City University. I joined Pacific Bangladesh Telecom Ltd as an Executive- Marketing Communication and Branding. It has been a very interesting experience till date, one that has provided an in-depth perspective into the actual workings of an organization. I have been able to provide a novice’s view of their operations and also learn from those who work in Citycell about the every day problems faced and the greater business issues in general. . 1Objective of the Study 1. 1. 1Broad objectives The report concentrates on the “Campaigning of the ZOOM package offered by Citycell”. I divided the statement into several points so that the task can be completed separately but jointly and with specific analysis and result for the perfection of the project paper. 1. 1. 2Specific Objectives The specific objectives were as follows: 1. To demonstrate the different types of campaigns that Citycell undertook to launch the ZOOM package. 2.
To find out the cost efficiency of different media advertisements such as electronic, print and air media as well as outdoor campaigning such as Billboards, festoons, banners, danglers, stickers, posters etc. 3. To ascertain customer growth and market situation of Citycell ZOOM. 1. 2SIGNIFICANCE OF THE STUDY ? By doing the study I was able to find out the level of exposure of CityCell ZOOM among the customers. ? Lastly I recommended what Citycell ZOOM should do to make it more preferable to the Customers. 1. 3METHODOLOGY Data Collection Method: Previous published statistics of Citycell, company brochures, website, survey by unstructured questionnaires, Outdoor monitoring of Citycell ZOOM Campaigning. ? Data Analysis Techniques: Graphical presentation, Percentage, Cross tabs. ? Data Presentation Techniques: Tabulation format. ? Format of the Report: Formal. 1. 4LIMITATIONS OF THE STUDY ? Availability of proper data and resources. ? Due to confidentiality the data available may not be accurate. ? Last but not the least, this kind of research needs a lot of time than I am given to conduct.
So, time was one of the concerns for not having the exact picture of the scenario. chapter Two organization part 2. 0PORTRAIT OF THE ORGANIZATION 1. THE COMPANY Pacific Bangladesh Telecom Limited (PBTL) is the first mobile phone service provider in the Indian Subcontinent, with its inception in 1993. The address of the Head office: “Pacific Centre”, 14, Mohakhali C/A Dhaka 1212. PBTL was founded by Pacific Group Limited and Hutchison Whampoa Limited. “Citycell” is the brand name under which PBTL provides wireless telecom or mobile phone service and products to its customers. PBTL is one of the companies of the Pacific Group.
The Pacific Group is involved in various businesses including: • Pacific Group of Companies (since 1967) • Fisheries • Banking • Automobiles • Tea • Pharmaceuticals etc PBTL is also the only operator in Bangladesh supporting two mobile technologies – AMPS and CDMA, while providing, in addition, Cellular and fixed wireless services. 2. 1. 1 Pacific Group Limited 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 Bangladesh Telecom Ltd. ). This group of industries was founded by the renowned industrialist and current honorable foreign minister – Mr. M. Morshed Khan. 2. 1. 2 Hutchison Whampoa Limited Hutchison Whampoa Limited (HWL) is a Hong Kong based diversified, multinational company with 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. 2. 2THE COMPANY HISTORY 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 Telephone 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, soon there was legal dispute between BTTB and BTL regarding the BTTB’s refusal 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, and that BTL would have to transfer the cellular portion to the license of HBTL. Bangladesh Telegraph and Telephone Board 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, however, 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. On 12th February 1996, HBTL was renamed Pacific Bangladesh Telecom Limited (PBTL). PBTL uses the brand name CityCell to market its cellular products.
In order to boost the financial and also the managerial strength of PBTL, the shareholders of the company have 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 by Fujitsu Limited, a Global Fortune 500 company, they have further strengthened their presence in Bangladesh and have also demonstrated confidence as well as their commitment to the Bangladeshi market.
Fujitsu has long been supplying Microwave links and telecommunications equipment to Bangladesh Telegraph and Telephone Board 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. 2. 3MISSION, VISION, OBJECTIVES, GOALS AND STRATEGIES 2. 3. 1 Mission PBTL’s mission statement is “To be 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 regarding Citycell. 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. 2. 3. 2 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. 2. 3. 3 Objectives The business strategy of Citycell is focused around two objectives: • Qualitative Objectives ? Increasing service offerings. ? Expanding the network. ? 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. • Quantifiable objectives Increase subscriber base over 1 million on the network by December 31, 2006 with 99. 8% overall network availability. 2. 3. 4 Goals: The current strategic goal of the company is to occupy a unique position in Bangladesh in the telecom sector. One way to achieve this is to develop a strong subscriber base to be able to penetrate in the markets with other attractive products. The ways to ensure a strong subscriber base is to: • Meet customer requirements • Establish technological leadership trough choice of appropriate technology • Establish service leadership through quality manpower • Expand the footprint of cellular coverage Expand the customer base 2. 3. 5STRATEGIES OF CITYCELL Citycell is a service-oriented company as it provides wireless telecom service. Their primary business according to Citycell is to sell wireless telecommunication packages to the customers and provide customers with comprehensive wireless telecommunication solutions. Citycell, since its inception in 1993, has targeted a niche market of the rich businessmen who would need information on the move or use it as a luxury item. It had a “Blue-Blood” image at that time by following a premium pricing policy.
It was the right decision at that time and Citycell made a good bit of revenue by doing so. But with the emergence of GrameenPhone and Aktel, Citycell has had to change its business policy. It could not survive in the long run with the “Blue- Blood” appeal. It brought down the prices of its mobile packages from what was Tk. 150,000 in 1993 to 15,000 at around the year 2000-01. And today, the lowest price of their package on offer costs around Tk 1699 only. Citycell has had to establish a mass-market strategy as it now targets every segment of the mobile telephony market.
Some of these strategies are depicted below: 2. 3. 6 Functional Level Strategy PBTL’s focus is on efficiency, quality, innovation, and customer responsiveness. Citycell’s functional level strategy deeply concentrates on being customer responsive. It wants to grow its business by providing superior customer service to the customers. And for that, as already stated, Citycell has a 99 member customer service team working for them 24 hours a day, on the Helpline or the front desk 7 days a week. Not only that, but Citycell has just recently introduced a slogan saying, “Because We Care”.
The strategy suits the company since care is what they strive to provide, especially in the face of competition such as GrameenPhone , AkTel and Banglalink. 2. 3. 7 Business Level Strategy The business level strategy of Citycell is that of differentiation. As Citycell targets everybody from small businessmen of a small town to the big corporate of the urban area, it has packages for everyone. There are the prepaid mobiles for the cost conscious people and those with monthly rents of Tk. 500. It has prepaid mobile-to mobile packages and 24 hours BTTB connectable prepaid packages.
The packages offered will be classified in depth in the marketing mix part of this section. PBTL applies both cost leadership and differentiation strategies as their business level strategies. Citycell wants to increase market share by expanding the network by ensuring the lowest call rate within the industry. 2. 3. 8 Corporate Level Strategy PBTL follows related diversification as their corporate level strategies. The management of PBTL is already involved in diversified businesses of automobiles, banking, tea gardens etc.
But PBTL itself has no plans of any sort of backward integration, which would be creating technologies like CDMA or forward integration to make mobile sets themselves. 2. 3. 9 Global strategy Citycell does not have any Global strategies as it is still in a growth stage within Bangladesh. But just to keep within reach, some of the mobiles do have ISD connectio10ns. 2. 4WORKFORCE Citycell has currently 540 permanent employees under direct payroll. There are 146 part timers working currently. The Customer Care Division is the biggest department in Citycell at the moment with 112 employees. . 5ORGANIZATIONAL STRUCTURE Citycell has just recently introduced the post of the CEO and established the Human Resource Department (HRD). The name of the new CEO is Mr. Chai Hoon Pin, a Chinese executive with vast international experience in the telecom business. The CEO has taken over the activities that the former MD, the son of the owner of Pacific Group of Industries, Mr. Faisal Morshed Khan, used to perform. The Vice President (VP) of the Human Resource Department (HRD) joined in March of this year. The activities of the HRD have been defined.
No Assistant Vice President (AVP) has yet been hired for this department. The marketing and sales department makes up the office of the Chief Marketing Officer (CMO), who is also the VP of the department. The office of the CMO decides down into four sub departments with an AVP in charge of each. A senior VP is in charge of the whole engineering department while three other VPs are assigned for Switch, Base Transceiver Station and Planning & Development. There are AVPs for each section of the engineering department except Power, which is directly under the charge of Senior VP.
It has to be mentioned that there are two other posts after the AVP: senior executives and executives who have managerial authority. There are also advisors assigned for various departments who are not direct employees but have directorial level status above the VPs and below the CEO. There are currently two advisors working in the Engineering and Marketing & Sales department. Further levels of employees exist under the executives, officers and senior officers. To facilitate the overall process the ranks of drivers and peons also exist. The Charts below represents the organgram of the company:
Figure 2. 0: Citycell Organogram [pic] Source: Citycell Information Desk. 2. 5. 1 Sales & Marketing As the name implies, this division’s job is to conduct marketing promotion for Citycell. The job of its employees is to maintain a good distribution channel relationship, media, and corporate clients. This division also deals with value added services, brand and product design. In the Sales Division there are Channel Sales, Corporate Sales and Direct Sales. In the Marketing Division, there are Market Communications, Brand, VAS, Product Development and FWT & Backbone Departments.
The Senior Vice President is the Chief Marketing Officer of this Sales & Marketing Division. 2. 5. 2 Customer Service Operation, Billing and IT: This department deals with customer after the sale occurs. Main activities of this department includes maintaining a database of the customers, preparing, distributing, and collecting the bills, activating new connections, deactivating connections, helpline service, interchanging of the CDMA sets, collecting the faulty and repairable sets, returning repaired sets, changing CDMA sets and so on. This department is divided into two divisions: 1.
Billing & IT and 2. Service Delivery Figure 2. 1: Service delivery [pic] [pic] Source: Citycell Information Desk. 2. 5. 3 Finance and Commercial This department is divided into two divisions, a) LC preparation and Purchase, and b) Fund Management. Here LC is opened for purchasing of sets and equipment, and all the funds collected are used and controlled for the maximum benefit of the company. This department is also responsible for the budgeting which takes place once a year for the next three years. Figure 2. 2: Finance and Commercial [pic] Source: Citycell Information Desk. 2. 5. Engineering This department is responsible for the setting up and maintenance of the heavy equipment and the major telecom channels required for providing services to customers. This department is divided into 7 divisions. They are Switch, Central Base station, Microwave; Radio Frequency, Base Transceiver Station, Power, Planning and Development. Figure 2. 3: Engineering [pic] Source: Citycell Information Desk. 2. 5. 5 Accounts This department is responsible for collecting direct cash or check or charging credit cards from the customers who are paying for the service and equipment.
This department is also responsible for maintaining the balance of store where sets and equipments are gathered for future purpose and present operation. Figure 2. 4: Accounts [pic] Source: Citycell Information Desk. 2. 5. 6 Administration and Human Resource As the name implies, this department has three major divisions. The Administration division is responsible for Contract, Legal and Protocol & Government affairs. The Purchase & General Maintenances is responsible for Purchase & Support and Estate & Properties, Maintenance & general security. The Human Resource department is responsible for procuring future employees according.
This department is also responsible for maintaining the database of all employees, leaves, attendance, health care and related fields of employees. Figure 2. 5: Administration and HR [pic] Source: Citycell Information Desk. 2. 6MARKETING MIX OF CITYCELL CityCell now follows the mass-market strategy. It has long passed the days when it used to be the monopolistic cellular phone company selling its connections with sets at Taka150, 000. Now it wants to serve all segments of mobile users from low end users to corporate all over Bangladesh. The Marketing Mix or the 4Ps that Citycell follows are discussed below. . 6. 1 Product Citycell’s products are the packages it offers. They offer both postpaid and prepaid packages for consumers since they wish to serve everyone. 2. 6. 2 Post Paid Packages The postpaid packages of Citycell are: • Jono Phone • CityCell 500 • Shabar Phone • Aamar Phone • Citycell Premium 2. 6. 3 Prepaid Packages The prepaid packages are made for the cost conscious buyers who may be a student or even a businessperson. The user has total control on his mobile usage, because he knows how much money he is spending on making a call. The hassle of going to the bank to pay the bill is also easily avoided.
But of course the rate is a bit higher than postpaid mobile call charges. It is currently the most effective tool for Citycell and other companies for growth in respect of gaining customers throughout the whole of Bangladesh. Citycell released its prepaid first in 2002, with the uniqueness of having TNT incoming facility. The pre-paid package of Citycell is called “Aalap”. The prepaid packages are: • Hello 0123 • Mega Phone • Aalap Super Plus • Aalap Classic • Aalap Super • Aalap A • Aalap B • Aalap Call Me (with call2cash feature) 2. 6. 4 Set Classification Citycell classifies its subscribers’ sets in two ways depending on where they buy it.
The sets, which are brought by Citycell are called the “White Sets” and those which are not, are called “Grey Sets”. 2. 6. 5 Price Citycell’s policy when it comes to pricing is to keep the lowest call rate possible per minute for the zonal calls. This is visible in their call rate policy compared to that of others. When a customer brings his own set which is called “Grey Set”, he has to present a bank clearance to make sure that he/she has paid tax on the purchased set. The customer must also pay an additional charge of Tk. 575 (including 15% VAT) to get the set programmed. This is for an existing number in a “Grey Set”.
A new connection for a “Grey Set” requires the tax papers and an additional charge Tk. 1675 either for a new prepaid or postpaid line. The customer has to pay a refundable fixed deposit for the postpaid packages. For any sort of connection the lowest price that CityCell has on offer at the moment for a set and connection is Tk. 1,699 and the highest is Tk. 8,999. The customer always has to pay 15% VAT for his/her bills (both pre-paid and postpaid) according to government regulations. The set price of CityCell includes the 15% VAT. 2. 6. 6 Place The main emphasis of Citycell when deciding on place is convenience and roximity to customers. Dealers are not treated as the subordinate branches of the company. Instead, they are taken as partners in the endeavor to provide better services to customers. The primary marketing channel used is that of distributors who are at various locations. It is only natural, from a business point of view, that the density of dealers be highest in Dhaka. In other regions of the country, there are dealers in each main town of the various provinces where Citycell network exists. Network coverage has been increasing and so are the numbers of dealers.
Logistics and transportation is handled primarily by the dealers. A certain amount of logistic support is provided to dealers for better supporting their activities for Citycell. 2. 6. 7 Promotion The company that had once relied on its name to gain new market share now has to aggressively market their brand and packages among the Bangladeshi customers. The main advertising is done in newspapers. The advertisements have a general look targeted towards everybody. Citycell ads in the past used to emphasize on building a solid aristocratic image of the postpaid packages and a ‘light and happy’ image of the prepaid packages.
But at the moment there is no differentiation in the ads because Citycell does not have any use of ‘aristocracy’ any more. It targets the general population. The ‘light and happy’ image is visible, however, on the advertisements in television and sometimes on newspapers. Overhead plastic billboard ads of Citycell are visible on every major and important roads of Dhaka. The slogan of these ads is the current theme of Citycell “More Than You Thought possible”. Personal selling is done not just for phones but also for new data transfer services to corporate customers.
This is done by the services marketing department under CSO and also by Corporate Sales department under Marketing and Sales. The marketing department carries out public relations. It emphasizes on PBTL’s contribution to the development of the telecom industry in Bangladesh and the introduction of advanced CDMA technology. As part of their promotional activity the marketing department gives out banners, poster and calendars to its dealers. They dealers are also given a monthly allowance of around Tk. 2,500 for supporting Citycell activities. Notebooks and calendars are given out to corporate clients every year.
For supporting sales activities Citycell had offered a free camera with every prepaid package brought. Then recently they offered “lucky” scratch cards for all its packages. Prepaid customers could get free airtime ranging from Tk. 400 to Tk. 4800. Postpaid customers could get free rental ranging from a month to a year. Now CityCell is offering 15% discount on purchase of a single Citycell package and 50% on two. Citycell has probably carried out the most aggressive sales campaign recently than any of the other companies. 2. 7SWOT ANALYSIS OF CITYCELL
SWOT stands for Strength, Weakness, Opportunity, and Threat. This is a very important tool for a company to analyze its internal and external environment. 2. 7. 1 Strengths • Capital: Citycell has a huge amount of capital. As mentioned before, the Pacific Group, which is a well-established local organization of $1000 million, owned 90% shares of PBTL, and it was never required to borrow from banks or investors. • Competitive tariff structure: Price is a huge competitive advantage for Citycell. Citycell is the only organization selling CDMA mobile phones with both way T facilities at the lowest rate.
For example, the lowest package rate of CityCell is Tk 4,999/= with T incoming and outgoing facilities (‘Alaap Call Me’, pre-paid). With T facilities the other competitors are nowhere near Citycell. This package has a fantastic and a very innovative feature, Call2Cash, in which any subscriber of this package can ‘earn’ or collect Tk 0. 25 per minute in his/her pre-paid account upon receiving a call from any Citycell mobile. • No ‘Busy Network’: Because of an enormous number of channels, access to Citycell mobile phones is very easy. The rate of call drops is very low.
It possesses high quality voice and data transmissions. • 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. The current CDMA 1X platform paves the way for easier migration to 3G technology. • Low Cost: Citycell follows low cost strategies that enable a greater profit margin for shareholders. It tries to cut cost in every possible way to maximize the strengths for future battle. Centralization: PBTL is a centralized organization that helps in easier coordination of business activities. • Dedicated & professional management team: Dedicated core staff, willing to provide significant labor hours to accomplish targets. 2. 7. 2 Weaknesses • Fewer staff: The number of staffs working for Citycell is not enough. Far fewer staff than actually required in terms of tasks to be completed. • New technology: CDMA is the latest technology but it is not widely used. A still more popular option is GSM. It is more difficult for Citycell to provide international roaming because of few number of CDMA operators around the globe. Low network coverage: Though Citycell started to provide mobile telecommunication ten years back, it is still behind the other operators from the point of nationwide coverage. GrameenPhone was able to use the optical fiber network of Bangladesh Railway through strong lobbying with the past government for the next twenty five years. Therefore GrameenPhone’s expansion has been huge, whereas Citycell has covered roughly 58 districts all over the country with a poor infrastructure. • Lack of education: The subscribers are not educated enough to handle sophisticated CDMA mobile handsets effectively.
Proper knowledge is essential to handle these mobile sets. 2. 7. 3 Opportunities • Advanced technology: Since CDMA technology is the latest in the wireless telecommunication industry and most effective one; it is likely to find even newer potential in the near future. • Secured data transfer: Secured data transfer means Citycell has the potential to be the leading player once more. • Leadership in telecommunication services: Bangladesh government has already started to provide license to private sectors to set up land phones. PBTL is the only mobile phone operator with nationwide mobile & fixed license.
With full nationwide coverage and a huge capital investment from Singtel, it is possible to become the market leader. • Overseas expansion plan: The growing need for across border telecom services at lesser cost (e. g. with neighboring India, Burma, then onto Thailand, etc) can be an opportunity for Citycell. • Acquisition of Singtel: The acquisition of 45% equity stake of Citycell brings more opportunity. The company now has greater capital and more budget to invest on its network facilities. In fact, of the $118 million investment of Singtel in Pacific Bangladesh Telecom Limited, $90 million would be spent on network expansion plans 3. . 7. 4 Threats: • Technology factor: There is a high degree of acceptance of GSM technology over CDMA in local market. • Legal problems: Tough legislation against easy expansion into regional and international markets bypassing the state owned BTTB. • Newly imposed tax: In the fiscal budget proposed last year, the government imposed a Tk. 1,200 tax on each and every SIM/RUIM card which would hurt the regional expansion plans, increase customer base in the lower segment and the profit motive for every operator including Citycell. New competitors: If new, international competitors like ‘Airtel’ of India enter the local market with full coverage and low price, and then not only Citycell, but also other mobile operators would be in great trouble. Orascom (Banglalink) is already giving Citycell a run for its money and market share. • Global companies: In India, global companies like ‘AT of the United States and in Eastern Asia ‘Vodaphone’ of the United Kingdom is working well. They might wish to enter Bangladesh with higher capital. If so, it will be a huge threat for Citycell. BTTB mobile phone: BTTB has already entered the mobile telecommunications industry (Tele-talk). It might carry unfair government advantages and cause severe problems to all other mobile phone operators. 2. 8CURRENT STATE OF CITYCELL’s OPPORTUNITIES Citycell packages are focused to follow the company’s differentiation strategy. There are a number of market segments into which Citycell’s potential and current 4 Product development is dynamic process. The above USPs may change over a relatively shorter period. Customer base can be divided.
PBTL always strives to make each Citycell package released 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, while setting them as being different from other companies; acts also as a handicap in certain areas. The primary strategic choice that has affected PBTL is their choice of technology. Although CDMA technology is far in advance from other technologies, it has yet to gain a significant acceptability in Bangladesh.
Therefore, there is a serious shortage of CDMA sets. 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 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 at the head office. Since the majority of customers are buying their sets directly from PBTL, they are also dependent on PBTL for repairs and spare part requirements.
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 resulting dissatisfied customers. 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. 9. NETWORK COVERAGE OF CITYCELL Figure 2. 6: Network coverage of CityCell [pic] Source: Citycell Information Desk. 2. 10FUTURE DIRECTION OF CITYCELL The Company appears to be moving towards a more customer oriented approach in its overall customer policy. Gone are the days when PBTL could dictate terms to its clients. These days PBTL has to spend an increasing amount of time covering its shortfalls and persuading customers to stay with them.
This is especially worrying after what is perceived to be by many industry insiders, a concerted effort by GrameenPhone to make headway into the corporate market – a domain that was once almost exclusively under PBTL. What the company is really looking for is a way by which it can seriously bounce back into dominant position. The primary reason for choosing CDMA is that they hope to be able to introduce next generation (2G) mobile phone features such as voice conferencing, Internet, sending visual data, etc into their services. It remains to be seen how successful they will be in harnessing the full power of CDMA technology.
There is also a proposal to decentralize their organization in order to be able to better serve their customers in the far-reaching regions of the country. This means that many major functions will be spread out throughout the country, divided according to customer regions. It is yet to be seen how much decentralization may occur, but it is a major issue under consideration. If the network expansion into North Bengal and then into Khulna region occurs soon, there is a real potential, by virtue of superior technology, to gain a significant competitive edge over GSM rivals.
There is also the sale of data link to corporate clients. This will gather significant revenue for the company as well as solidify its position with its corporate clients as their primary information transfer and telecom provider. The incongruities between the various tariff plans of the various packages are to be removed to make it much easier for customers to budget usage and also to increase the value for money of each package. There are no mergers or acquisitions in the future, but it is believed that Fujitsu may increase its holdings in PBTL and gain greater management control.
If this happens, then the entire picture may change. 2. 11FUNCTIONS OF DIFFERENT DEPARTMENTS 2. 11. 1SALES & MARKETING DIVISION The major marketing goal of the Sales & Marketing Division is to capture a significant market segment that will yield maximum revenue by means of passing on directly or indirectly, a high end cellular phone service. Many clients provide telecom services to their locality by Tellular or Fixed Wireless Telephone (FWT). 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.
Figure 2. 7: Sales & Marketing Division Organogram [pic] Source: Information desk, Sales and Marketing Division The office of the Senior Vice President (SVP) of Sales and Marketing Division is responsible for coordination of marketing activities across the company and to provide top level management with an overall picture of the market situation. The Vice President (VP) of the division oversees the product and business development scenario of the company. He is responsible to the SVP of the division. 2. 11. 2DEPARMENTS OF S DIVISION
Sales and Marketing Division has seven main departments headed by seven managers. 2. 11. 2. 1 Product Development This department is responsible for find out the innovative features that can attract the existing and potential customers. Product development is one of the key departments in the company. While developing new packages and talk plans, this department has to keep in mind the profit and cost issue. Under all these constraints the department has been producing exciting and new features to attract customers. 2. 11. 2. 2 Product (& Tariff design)
This sub-department is under the Product Development department and is responsible for package design and fixing tariff rates, which are 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 customer needs. 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. . 11. 2. 3 Value Added Service (VAS) This is another department which also deals with product development, but is concerned only with the Value Added Services that the company offers. Value Added Services are those other than basic voice calls. CityCell’s VAS department is one of the leading VAS providers in the country in terms of the number of wide range services that it is providing. • Short Messages Service (SMS) • Voice Mail Service • Call Conferencing • SMS Based Information Services • Fun (Jokes, quotations, etc. ) Financial Services • Emergency Services • Sports • SMS Banking & others 2. 11. 2. 4 Branding The brand department of the company deals with image of the brand in the minds of the customers. It basically helps the brand portray its intended image to the potential target group. This department, along with the Marketing Communication department, deals with the promotional activities. 2. 11. 2. 5 Corporate Sales There is a separate office of assistant vice-president for corporate sales who is also responsible for corporate customer relations.
Corporate customers are given high priority in terms of sales and also in terms of after sales services. Of course, this is due to the high usage and need for good long term goodwill with such corporate clients. This department 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. 2. 11. 2. 6 Channel Sales
The assistant vice president 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 customers in their respective areas. This department is also responsible for overseeing that there is an excellent support network for each dealer and that they are satisfied with their monetary or otherwise remuneration.
This department is also responsible for checking that each dealer does not cut into the sales of another dealer in a very proximal region. 2. 11. 2. 7 Marketing Communications The chief responsibility of this department is logically, promotion and communication of new products and product ideas to customers, both directly through selection of advertising media, then dissemination of information by means of advertisements; and indirectly through dealers by providing them with promotional material. This department 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 persuaded 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 and promote the packages on offer. 2. 11. 2. 8 FWT and Backbone This particular department looks after the Fixed Wireless Terminal (FWT) clients and the packages. FWT has been one of the most profitable sectors for the company. As a result this department has a great significance to the company. PBTL has undertaken a commercial program to expand its business activities to selling backbone for data transfer to corporate clients.
This network stretches from Chittagong to Sylhet through Dhaka. It has immense potential and may generate significant revenues for the company. The overall structure of the Sales & Marketing Department and its sections of CityCell has both advantages and disadvantages in terms of organizational structural and respective functionality. 2. 11. 2. 9 Trade Marketing The vision of this department is “To ensure the Brand presence and the loyalty in all Point of Sales throughout Bangladesh where mobile phone subscriptions are sold. ” The activities of TM include- • Need assessment of POS Materials:
The need for merchandising will be assessed by mainly Trade Marketing. During many occasions like Eid, Bengali New Year and English New Year, different merchandising items like posters, danglers, festoons will be printed • After having proper direction from Trade Marketing, the Creative unit of Market Communication will select the appropriate design for the merchandising items • Developing POS Material Portfolio: The portfolio of POS materials will be developed by Trade Marketing as to what items and what quantity should be distributed to different POS.
The categorization will be done as per the monthly standing of any particular POS according to the POS pyramid. Trade Marketing will have to interact with the Business Support unit and line Managers of Distribution periodically • Allocation of different types of POS Materials for different category of POS • POS Material distribution • POS Material replacement • Implementing and ensuring the brand presence in and outside of the POS i. e. shelf share, background walls, shop signs CHAPTER THREE PROJECT PART 3. 0About Citycell Zoom It is the brand name of Citycell’s Data Service. • It is the unparalleled Data Service solution that functions as a wireless internet connection as well as a mobile phone for the customer. • It is offered as a bundled service of Data, SMS, and Voice. • It is a very important package for the positive growth of Citycell’s service image. • Commercial Launch on July 19, 2007. • CDMA 2000 1X Platform. • Minimum speed of 38 kbps (4. 75 KBPS) and maximum speed of 153. 6 kbps (19. 2 KBPS). Average speed 72~80 kbps (9~10 KBPS). Convenience with good speed anywhere within Citycell’s countrywide coverage. • Full Mobility –move around the country staying connected to Citycell’s data service. • Maximum convenience with Cash Card recharge for Bill Payment, Online Self Care, email billing etc. • Flexible price plans. Figure 3. 0: Zoom subscriber Acquisition in 2007 • Closing sub-base till date is 9495 (100% postpaid subscriber) • Acquisition stabilized because of the high start up cost of the devices due to high Duty structure
In the above figure we can see that after the successful launch of Citycell Zoom it created a huge impact on the minds of the potential customers and the customer base during its launch was 2000. It slowly increased its customer base with time reaching about 10000 customer bases within six months. This increase in the customer base was possible because of a winning campaign strategy to make the customers aware of the product. Table 3. 0: Types of campaigns to launch Zoom Package Item |Quantity |Size/ Remarks | |Poster |124,000 |15″ X 20″ | |Leaflet |850,000 |4″ X 8″, 1 fold | |Dummy Pack |2,200 |as per discussion | |Bunting |900 |as per creative | |Festoon |470 |2′ X 4′ | |Indicator |210 |Lit | | |60 |Reflective Non-lit | |Table Top |600 |as per sample | |X – Stand |120 |as per sample | |X- Stand Flex |120 |5′ X 2′ | |Kiosk Setup |30 |As per “Kothar Ghonoghota” | |Dealer Insert/Trade Letter |1,000 | | |T- Shirt |1100 |Polo T-shirt | | |410 |Round Neck | |Lenticular |260 |1. 5′ X 1′, as per discussion | In the above table we can see the different types of POSM materials used for the Zoom launching campaign. Table 3. 1: Outlet Details |Zone |Outlet |Franchisee |Retailer |Total | |Dhaka (Raihan) |50 |25 |100 |175 | Dhaka (Reaz) |40 |0 |0 |40 | |Chittagong |30 |5 |50 |85 | |Khulna |12 |8 |10 |30 | |Barisal |5 |1 |5 |11 | |Sylhet |30 |0 |0 |30 | |Rajshahi |10 |13 |10 |33 | |Total |177 |52 |175 |404 | The above table shows the distribution channel of the trade marketing department of Citycell in different districts of Bangladesh. The support of nationwide retailers, outlets and franchisee made it possible for the successful campaigning of Citycell Zoom. Table 3. 2: Distribute Plan |Districts | |Sl.
No |Zone |Date |Venue |Number of |Perhead |Total | | | | | |participant|food cost |Food Cost | | | | | |s | | | |Dhaka |307 |30 |337 | |Chittagong |85 |15 |100 | |Khulna |46 |9 |55 | |Sylhet |48 |7 |55 | |Rajshahi |33 |12 |45 | |Total |519 |73 |592 | |Note: Channel partner includes, two guests from each distribution house, retailer, | |outlet & franchise. | The table above shows the division wise training schedule and cost incurred during the training provided to different Customer care officer of the Customer care division of Citycell. The training was provided to ensure proper advertisement of the Zoom product and device specifications in order to make the campaigning successful.
Figure: 3. 1: Activity wise Standard operational expense of CityCell Zoom (Jan – Aug’08): The pie chart is the Standard operational expense chart of Zoom campaign. The different media used for the successful campaign of Zoom and the percentage of total operational expense in different media is shown in the chart. Figure 3. 2: Zoom SOE on TV (Jan-Aug ’08): [pic] **All figures are counted in Lacs. The table above shows the SOE on TV of Citycell as compared to other telecommunication in the country. The table shows the SOE on TV of different telecommunication company from January 2008 to August 2008 in which GP head the list and Citycell follows.
The reason behind it was the new launching of Citycell Zoom and Citycell has been able to catch up with GP with time. Figure: 3. 3: Zoom SOE on Press (Jan-Aug’08) [pic] **All figures are counted in Lacs. The table above shows the SOE on print such as newspapers, magazines, posters, billboards etc of Citycell as compared to other telecommunication in the country. The table shows the SOE on print of different telecommunication company from January 2008 to August 2008 in which GP head the list and Banglalink follows. The reason behind it was the new launching of Citycell Zoom and Citycell has been able to catch up with GP with time. Table: 3. 5: Reach of Media |Urban |Rural |National | |Radio 30% 40% 32% |30% |40% |32% | |TV |85% |52% |65% | |Press |46% |20% |30% | |Cinema |10% |14% |11% | 3. 2Rationale of Bulk Buying • Ensure higher discount than ad-hoc spots buying Maintain prime/high TRP based spots on TV, otherwise unavailable • Ensure short-notice launch of product/VAS campaign on TV, press & radio • Flexibly allocate commercial time as per campaign need • Be in pace with the competitors • Maximize exposure at optimal cost • Ensure constant presence on TV, Press & Radio channels ensure top of mind awareness 3. 4Selection criteria of TV & Press Media buying has done based on following criteria: Electronic media • TRP(Target rating point) data • Channel viewership data • Competitors SOE from MRC Mode • Efficiency of spots during programs • Lower CPRP(Cost per rating point) Press media • Segment wise print media habit. • Higher circulation. • Lower CPT (Cost per thousand). • Readership profile. To determine the reach of different media to the target audience and maximizing the exposure of the target group, we also consider following report: • NMS (National Media Survey) report (source: Sirius). • Monthly Monitoring report on TV and Press (source: MRC Mode). • TV ratings report through People meter (source: Sirrius). 3. 5Outdoor and Events 3. 5. 1Billboards & Strategic Location Branding 233 Outdoor sites across the country. Strategic locations branding • ZIA Int’l Airport. • Chittagong Int’l Airport. • Kurmitola Golf Club. • LED in Agrabad, Chittagong. • Cox’sbazar Sea Beach Watch Tower. • Jamuna Bridge. • Mohakhali Flyover. • Khilgaon Flyover. • Comilla Cantonment. 3. 5. 2Trade Marketing Support • Lit & Non Lit Shop Signs. Shop Shutters. • Wall paint in Dhaka and Rajshahi. • POP items – rotating mobile holder, shelf-in-shelf, 3 station leaflet stand, shelf strip sticker, wobblers, life size see through sticker and one way vision sticker. • PCO mobile identifier, umbrella, notebooks, festoon, caps and bags etc. • Regular POSM – posters, leaflets, buntings, danglers, stickers, X-stands, festoons, sunshades, PP board identifier, manuals etc. 3. 5. 3Events & Sponsorship • Corporate Bazaar 2008. • BASIS SOFT EXPO 2008. • CITF 2008. • SITF 2008. • Indo Bangla Bangladesh Games. • 3rd CCMA. • 4th CCMA (initiated). 3. 5. 4PR Events • Potato Campaign. • Esho Bangladesh Gori. Madaripur Video Conference with JBFH. • World Breastfeeding Day JBFH. • JBFH Tele-Video Health Service Launch. 3. 5. 5Non-conventional media • Campaign specific branded T-shirt for rickshaw-pullers (nationwide). • T-shirts distributed at rickshaws depots across the country, and pullers will be made to wear clutter breaking yellow t-shirt. • Build on nationwide branding with the color yellow. • Passengers that day will be exposed to the product message throughout the ride. • T-shirt will ensure repeat visibility every time the puller wears it. 3. 5. 6MIT & Direct Sales Support • 10 Microbus Branding. • Leaflets, posters, stickers, pocket calendars, t-shirts, festoons etc. Logistics support for Sylhet International Trade Fair and Chittagong International Trade Fair. • Various discount coupons, booklets, leaflets, hand fan etc. 3. 5. 7Outdoor Visibility Management CityCell Zoom has a total of 57 Outdoor Sites with a net yearly investment of BDT. 3,24,70,800/= Figure: 3. 4: Division-Wise Payment Structure 3. 5. 8 Some facts and figures of the Billboard rate of Citycell Zoom Country wide per sft rate745. 82 Dhaka per sft rate1118. 19 Chittagong per sft rate553. 17 Rajshahi per sft rate 437. 50 Khulna per sft rate257. 31 Sylhet per sft rate553. 00 Table: 3. 6: Media wise per sft calculation |Billboard Front Lit Per SFT Rate |454. 91 | |Billboard Non Illuminated Per SFT Rate |544. 3056 | |Steel Board Per SFT Rate |8508. 333 | |Tri-vision Per SFT Rate |855. 0926 | CHAPTER FOUR Findings, Recommendations, and Conclusion 4. 0 Summary of Findings From the survey and collected data, I have found out that in order to achieve a successful campaigning Citycell follows many steps. First, it selects the different media through which the product will reach the target customers.
Then after selecting the media they find out the cost related to each media and based on the cost and the effectiveness of the media which fulfills Citycell’s criteria, they select the media through which the product which reach the target customer. Also they have to keep in mind that other telecommunications are also launching the same product to the same target customers. So in order to make their product attractive to the customers, they have to have better offers so that they can give the best offers to the customers and that reflects the effectiveness of the campaigning of Citycell. In terms of Electronic media, Citycell buys bulk airtime in different TV Channels/Radio. This reduces the cost as well as Citycell can also make the product reach the customers at the prime time when the maximum viewers are watching the TV channels and listening to the Radio.
In terms of print media, Citycell has some enlisted well known vendor companies which gives Citycell the best support for posters, leaflets, banners, danglers etc. Incase of news papers, Citycell Buys bulk column-inch space in top news papers for the whole year at discounted price. They also select the different pages on which the advertisements will be printed and this creates awareness for Citycell ZOOM in the minds of the target customers. In case of Billboards, posters, leaflets, banners, danglers etc, Citycell has MOU signed with different vendors which prints the danglers, posters, leaflets etc at discounted price throughout the year. So, by all these ways Citycell conducts a successful campaign and reaches its product to the target customers at their projected cost.
In this way the product also reaches the customers and also the predicted cost of the company can also be retained. 4. 1 Recommendations After Analyzing the report that I have prepared the following can be recommended: • A proposal for fair containing the details of the support that will be provided by CityCell should be distributed to Channel Sales members. • Concerned Channel Sales members should communicate with assigned Distributors & the Market Committees and get written authorizations of the proposal. • Written submission of fair venue & finalized schedule to TM minimum of 10 days before the event (no late approvals or fair extensions will be entertained). Based on the total number of venues and schedule TM will calculate the POSM requirement and prepare a budget. • Distribution of POSM should do internally through Courier. • Distributors will be responsible for visibility of POSM and venue branding. • The SOE of Citycell is low compared to Grameen Phone. So Citycell should can effectively measures to increase the Standard operational expense of Citycell. • Citycell should increase the PR events and sponsorship in order to increase its customer base of ZOOM. • The POSM Materials distributed to certain cities are very low compared to other cities, which mean lower promotion of Citycell in those cities.
So the distribution of POSM materials should be increased in those cities. • Citycell should increase the number of strategic locations for campaigning the Citycell ZOOM. 4. 2 Conclusion With this survey I was able to find out that the launching of ZOOM has created a big impact on the minds of the customers firstly in terms of quality of the product and secondly in terms of the launch that it got. It is very much apparent from the report that Citycell has made huge investment and brought up innovative strategies in order to market or campaign the Zoom product. Citycell has launched Zoom with a plan to make it reach the people from different part of Bangladesh in the proper way.
For this reason it has also spent of training employees so that they can make people understand the features and specifications of ZOOM and make people aware of the digital Bangladesh that people are hoping to see. From the analysis of the survey results, it is clear that ZOOM subscribers are satisfied about different services of the company. Moreover, the analysis indicated that the subscribers are quite loyal to the product. Some of the respondents have clearly pointed that if Citycell can work on some of its weaknesses, they will have no competitors for the product ZOOM. I firmly believe that if Citycell follows my recommendations, it will be able to achieve a sustainable distinctive competitive advantage and to run smoothly with loyal subscribers & market leadership. pic][pic][pic][pic][pic][pic] ———————– Expenditure Events & Sponsor, 3% Special Events, 1% Production (TVC,RDC), 4% Agency Fee, 2% Football, 6% Outdoor, 24% Press, 15% TV, 39% Radio, 2% Others, 5% -5. 0 5. 0 15. 0 25. 0 35. 0 45. 0 55. 0 Citycell 14. 7 19. 5 20. 1 22. 9 18. 8 22. 6 21. 0 21. 0 Aktel 0. 0 3. 2 6. 8 0. 1 6. 0 0. 1 7. 0 5. 0 GP 34. 8 38. 6 41. 1 41. 2 41. 2 33. 4 37. 0 43. 0 Banglalink 34. 2 27. 6 26. 7 28. 6 22. 1 33. 0 23. 0 25. 0 Teletalk 0. 4 0. 4 0. 3 0. 0 0. 2 0. 3 0. 0 0. 0 Warid 15. 8 10. 7 4. 9 7. 2 11. 7 10. 7 12. 0 6. 0 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 . -5. 0 0. 0 5. 0 10. 0 15. 0 20. 0 25. 0 0. 0 35. 0 40. 0 Citycell 10. 5 23. 7 12. 7 18. 3 19. 8 17. 0 18. 5 25. 7 Aktel 4. 3 4. 8 8. 9 3. 0 6. 9 6. 1 18. 8 16. 4 Grameen 34. 2 37. 4 34. 3 23. 5 23. 8 21. 1 12. 2 21. 8 Banglalink 33. 1 21. 2 26. 0 26. 1 21. 1 35. 4 12. 9 22. 9 Teletalk 1. 3 0. 0 1. 5 4. 3 0. 2 1. 6 1. 5 2. 2 Warid 16. 5 13. 0 16. 6 24. 7 28. 2 18. 9 36. 1 10. 9 Jan’08 Feb’08 Mar’08 Apr’08 May’08 Jun’08 Jul’08 Aug’08 Revenue Generation Risk Management Billing and IT Workshop Collections Account Verification Front Office Service Delivery Fund Management Commercial LC & Purchasing Finance and Commercial Purchase & General Admin Procurement Contract, Legal and Protocol
Administration and Human Resource Executive Senior Executive Manager FWT and Backbone -()[email protected][? Oc0[e0oe? IA·A????? v? v? v? vnfn_[T[T[TPThibA hOhs? Ehs? E h%ihs? Eh J,5? ;? ? [email protected] | 5? ;? ? h€X hs? E5? ;? ? h€X hs? E5? ;? CJ ? aJ h•O5? ;? CJ ? aJ h? [? ]5? ;? CJ ? aJ hIbNhIbN5? ;? CJ0? aJ0hO5Manager Corporate Sales Manager Channel Sales Manager Marketing Communication Manager Value Added Service Manager Brand Manager Product Development VP SVP Power Radio Frequency Microwave Planning & Development Base Transceiver Station Central Base Station Control Switch Engineering Store (Sets and equipments) All type of payments collection Accounts