Citycell

Executive Summery

CITYCELL is the first who provide mobile telecommunication facilities in Bangladesh. CITYCELL is a customer-driven organization whose mission is to deliver the latest in advanced telecommunication services to Bangladesh.  CITYCELL was received their licenses to start business in 1996.From beginning of their business they are trying hard for their development Now they have approximately 5 lacks subscribers. They gained success from the very beginning of their business and they work hard to continue their success.  Now today the main competitors of CITYCELL are, AKTEL, GRAMEEN PHONE, BANGLA LINK etc.

CITYCELL has many strongest sides but one of the strongest sides its customers service and relationship and so they always say “Because we care”. All of  the operator of the company work hard for the company’s objective so, soon it turned out to be a big hit.

Industry Classification

CITYCELL is a mobile telecommunication company. CITYCELL is a service oriented company. It also provides both products and services. The main competitors of CITYCELL’s are-

1. Grameen Phone
2.    AKTEL
3.    Banglalink
4.    TeleTalk.

The History of CITYCELL

CITYCELL (Pacific Telecom Limited) is Bangladesh’s pioneering mobile communications company and the only CDMA network operator in the country. CITYCELL basic strategy is coverage of both urban & rural areas. CITYCELL DIGITAL builds continuous coverage may vary from area to area depending on market conditions, the basic strategy of cell-to-cell coverage is applied throughout CITYCELL network. In Feb’1996 CITYCELL received licenses to start business operation.

Ownership Structure

CITYCELL (Pacific Bangladesh Telecom Limited) is a privately owned company with majority foreign ownership equity. Following lists the current owners of CITYCELL (PBTL):

•        Sing Tel Asia Pacific Investments Pvt. Ltd. – 45%
•        Pacific Motors Limited – 31.43%
•        Far East Telecom Limited – 23.57%

Mission

CITYCELL is a customer-driven organization whose mission is to deliver the latest in advanced telecommunication services to Bangladesh. The company offers a full array of fixed and mobile services for consumers and business that are focus on unique needs of the Bangladeshi community.

Objectives

CITYCELL is focused on innovation and creating new ways for customers to stay in touch and to do business. City Cell’s is offering a wide range of competitive prepaid and postpaid mobile packages as well as Value Added Services such as – SMS and information based services.

CDMA

CDMA means Code Deviation Multiple Accesses. The main advantage of using CDMA cell-phone signals for reference clock purposes is that they work better inside buildings, thus often eliminating the need to mount the GPS antenna on the outside of a building. It’s provides following benefits-

•       The latest technology of the world.
•       Best voice quality.
•       Data updated condition is far better than GSM.
•        Maintenance cost is low.

RIM

 RIM (removable User Identity Module) card. CITYCELL s’ RIM cards come in 32k memory capacity that gives you more space to store your data. RIM comes to you with the added benefits of:

 Flexibility to change handset (RIM compatible CDMA handset) whenever you like.

Storing important phone numbers or SMS in the RIM card, which will be with you even when you change your handset (Portability of user profile and personal data)?

 The most secure environment for network connection and mobile e-services

SWOT Analysis

CITYCELL is a telecommunication company. It has number of strength, weakness, opportunities and threats.

S= STRENGTH

W=WEAKNESS

O=OPPORTUNITIES

T=THREATS

Strength and weakness are internal factors of an organization that which is controlled by organization.

Opportunities and threats are external factors of an organization which is not only dependents on that organization but also giving part took by the Government, culture, environment and so on.

Strengths of CITYCEL

•       CITYCELL is the pioneer mobile company of Bangladesh.
•       Call charge low from other competitors.
•       Country- wide Network Coverage.
•       Extended warranty for handset and accessories.
•       Call to cash package.
•       Discount on after sale service.
•       All types of advertising promotion have made CITYCELL by them selves.
•       Available One 2 One facility.
•       International Roaming facility
•       Special offers for corporate customers
•       Widest worldwide coverage in more than 110 countries.
•       Accounts holders can pay their bills over the internet, ATM card and cash card which is a type of scratch card.
•       A group meeting can be held. Such as three people can talk at a time.
•       The company operates 24-hours call centre with over 86 well trained operators to respond to customer requires.

Weakness of CITYCELL

      Network problem.

      When the customer desire they can not change their mobile set

      Facility limited. Such as:

• Do not provide multimedia SMS.
• Do not provide GPRS system.

Opportunities of CITYCELL

•       M. Morshed Khan is the owner of CITYCELL who is a Foreign Minister of Bangladesh.
•       Large numbers of population in Bangladesh for business.
•       Most of the businessman uses CITYCELL for there business.
•       Many verity of product.

Opportunity Matrix 

Threats of CITYCELL

•       Aggressive promotion strategy of competitors.
•       Government regulation.
•       Expensive campaigns of competitors.

Threat Matrix

After analysis SWOT we find some valuable information about CITYCELL Digital. Bangladesh is a developing country. We can easily choose which is better for us. CITYCELL Digital has some lack ages. Such as-

•        Network coverage
•        CDMA system
•        Contradiction between RIM and SIM

If CITYCELL removes these defaults, we think they will be the leader of the cellular company in our country.

They also should use promotion strategy.

Government regulation

Overcome this regulation

Expensive campaigns of  competitors

Expensive campaigns of  competitors

 Product Life Cycle 

( total industry profit)

Introduction

Growth

Maturity

Decline

Marketing

Objectives

Gain Awareness

Stress

Differentiation

Maintain

Brand Loyalty

Harvesting,

Deletion

Competition

None

Growing

Many

Reduced

Product

One

More

Versions

Full

Product Line

Best Sellers

Price

Skimming

Or

Penetration

Gain Share,

Deal

Defend Share,

Profit

Stay

Profitable

Promotion

Inform,

Educate

Stress competitive

Differences

Reminder

Oriented

Minimal

Promotion

Place

(Distribution)

Limited

More

Outlets

Maximum

Outlets

Fewer

outlets

Porter’s Five Forces

Bargaining Power of Supplier

CITYCELL  is a Private limited company. Their competitor’s are Grameen Phone, AKTEL, Banglalink. They are related with foreign company like Sing- Tel Asia Pacific Investments Pvt. Ltd. Pacific Motors Limited,   Far East Telecom Limited. For this most of the raw materials they take from foreign countries. Motorola, Nokia, Dexian, Hisense, Utstartc.

 Bargaining Power of Customers

In BangladeshCITYCELL are in Oligopoly market. There are only four mobile company. But competition is very high. So the bargaining power of customer is high.

Threats of New Entrants

It was the first mobile company of Bangladesh. But day by day another three mobile company entered in to this business which is taken its place, and also much new company will enter in to business. They are in threats of new entrance.

 Threats of substitutes

Grameen Phone, AKTEL, Bangle Link provides many new packages. For this customer can get more benefit from them. As they are substitutes of CITYCELL the new packages are threats for them.

Threats of Competitive Rivalry between Existing Players

They provide after care service to employees as free mobile phone service, transportation service, short working hour service, many sponsor to the  employees as they can go to many events, foreign tour. CITYCELL provide many other facilities to employees which can differ them from others

BCG Matrix

In the BCG (Boston Consulting Group) matrix we find that company are evaluated with market share and market growth. There are four parts in BCG box. These are Stars marks, “?” Marks, Cash cows and Dogs. After analysis the packages of City cell we find that different packages goes under different category.

High market share + High market growth = STAR

Low market share + High market growth = “?” Marks

High market share + Low market growth = Cash cows

Low market share + Low market growth = Dogs

    Star

           “Aalap CLASSIC” goes under star category. Because market share and market  growth are both high.

    “ ?” Mark

     “Aalap Super” goes under “?” marks. Because market share is low and market growth is high.

     Cash Cow

 Market share of CITYCELL premium is low and growth is high. Cash cow needs some extra promotion to raise market growth.

   Dogs

 And last of all CITYCELL Telluler goes under dogs category. Because the market share and growth is both low. all Dogs needs diversification. It may need kick out from the market.

This different category needs different promotion

   Product/ Market Expansion Grid

Existing product + Existing market = Market penetration

New product       + Existing market  = Product development

Existing product + New market        = Market development

New product       + New market       = Diversification

  Market Penetration

Making more sales to current customers without changing its products.

   Market Development

Develop new markets for its current products.

   Product Development

Offering  modified or new products to current markets. Aalap Classic goes to product development.

   Diversification

 New products for new markets.

Value Chain

Value Chain is a tool for identifying ways to create more customer value. Michale Porter of Harvard has proposed this value chain. The value chain identifies nine strategically relevant activities that create value and cost in a specific business. These nine value creating activities consist of five primary activities and four support activities.

Inbound Logistics

They provide mobile with rim to customers. They collect their product as mobile phones of various companies such as Nokia, Dexian, Motorola etc. They collect these types of phones from abroad as their raw material. Mobile phone’s charger, the instruments of network coverage.

Operations

They reach their products name to their target customers by various way, like the use many media (TV ad, news paper, bill board, etc.)

Outbound logistics

They provide their products by the seller department and dealers.

Marketing and Sales

The have an own marketing department for their particular product. This department manages the whole marketing operations, such as- promotion segmentation, Distribution etc.

 Service

They have a service department. Which is open 24 hours customer services .

They have hotline 121 for CITYCELL and 011-121121 from any other phone. Open for Business 7 Days a Week Recently CITYCELL was again at the forefront of innovation by being the first operator to open its front desk operations 365 days a year at all of its Customer Service Canters in Dhaka, Chittagong and Sylhet.

Firm infrastructure

Firm infrastructure means- total transportation system, buildings, bank balance, man power, Physical structure, network tower.

  Human Resource Management

They have a high skilled and educated people who are working for the company to achieve their mission and objectives.

Technology Development

They develop their technology by using foreign technician. They use CDMA technology which is very up to date. They are continuously trying to make strong their network coverage.

Procurement

They collect their raw materials from abroad like Singapore, Malaysia, China, etc.

 Segmentation

Segmentation means division of a market into distinct group of customer. After introduce CITYCELL in 1996 they follow the mass marketing, because this time they ware the only one mobile company in Bangladesh. But now many competitors are coming in mobile phone market.

CITYCELL segment their market for “Aalap Classic” by following ways-

Demographic Segmentation

Demographic segmentation is mainly nation, age, income, nationality wise segmentation. Our product, CITYCELL “Aalap Classic” mainly segmented.

The main view of this product is to provide mobile facility in cheaper rate for all.

Geographic Segmentation

 “Aalap Classic” is geographically segmented by whole nationwide. There is no target wise segmentation. They segmented the product for all the regions and for all regions they spend same type of clarification.

   Behavioral Segmentation

Behavioral segmentation is benefit, occasion, and user status wise segmentation.

    Offer for Aalap Classic

    Effective segmentation

There are many ways to segment a market but all the segmentations are not effective.

Effective market segmentations are –

•       Measurable
•        Substantial
•        Accessible
•        Differential
•        Actionable
•       Measurable

Measurable means size and purchasing power. Here size is the number of customer and purchasing power is the buying capacity of consumer. City Cell provide the lowest cost price of product, so their segment is measurable and all types of customer are afford to purchase their product.

Substantial

The market segments are large or profitable enough to serve. Segment must be large enough to warrant a special marketing mix. City Cell is the pioneer of mobile company and they have number of customer approximately 5 lacks.

Accessible

Accessibility of product in the market that is called accessible. Product must be accessible to the segment. Segment can be effectively reached and served. Now almost all of the city in our country we can get the product of citycell.

 Differential

Different segment for different appeal. Segment must be respond differently to different marketing mix elements & action. City Cell provides:

Actionable

Effective programs can be designed or attracting and serving the segments or implement the marketing mix-

Product

    Price

    Place

CITYCELL distribute their product Aalap Classic all over the country.

    Promotion

CITYCELL segments their market for these reasons:

       To identify customers with similar needs and wants.

       To design separate marketing mix for separate segments.

       To satisfy customers.

Targeting

Targeting means among the segment we will find the attractive one to serve.

CITYCELL has targeted their customers into certain levels of measurement. Their package “Aalap Classic” is mainly targeted for all class people. They are offering this package at lowest price mobile connection with hand sets in the market. No competitor don’t give this type offer like them. They have given this package into target market to increase their market share.

Positioning

Positioning means occupying a clear and distinctive place in the mind of target customers.

“Because We Care” this is the main positioning of CITYCELL. By this positioning they want to mean that they always care for their customer. They also try to provide all kind facilities for their customer.

As their product is “Aalap Classic” the main position of this product in the mind of target customers is call free. This is the cheapest cost product for all types of customers in the country. They want to make this position in their mind.

 The ways of differentiation positioning are –

•        Product differentiation
•        Service differentiation
•        Personal differentiation
•        Image differentiation
•       Product Differentiation

Their product is totally different from other mobile companies because they are the only CDMA network operator in the country.

      Service Differentiation

They always offer mobile connection with hand sets, and give  1 year warranty with every hand set. They have a service department. Which is open 24 hours to give customer services.

      Personal Differentiation

They have a high skilled and educated people who are working for the  company to achieve their mission and objectives. Which makes them different from others.

      Image Differentiation

They  do a lot of things to increase their image such as- social welfare, give sponsorship to cultural program, sports, beatification, traffic rules, police control room’s phone numbers, etc.

Marketing Mix

The marketing mix is probably the most famous phrase in marketing. The elements are the marketing ‘tactics’. Also known as the ‘four Ps’, the marketing mix elements are product, price, place, and promotion.

CITYCELL provides both products and services, because it has various items which are tangible and it provides communication services for customer relationship which is intangible. So, CITYCELL is both product and service oriented company. In this reason CITYCELL work with three additional P’s, these are:

•     People
•     Physical Evidence
•     Process

So we can say CITYCELL work with 7 P’s:

•     Product
•     Price
•     Place
•     Promotion
•     People
•     Physical Evidence
•     Process
•   Product

Everything is product which having utility. CITYCELL is telecommunication Company. It has different types of product. The product of CITYCELL basically divided in two parts.

Here, we discuss a specific product of CITYCELL, which felt in under the Prepaid line that is “AALAP CLASSIC”.

Levels of Product

   Core Product

Consists of all the benefits the product will provide for consumer. Here, the core product is –

   Basic/Actual Product

Consists of the physical good or delivered service those are providing for consumer. Such as Mobile, Rim etc.

   Expected Product

      All features of the product.

       30 second pulse from the first minute

       24 hour NWD and ISD facility

       Network coverage

      Augmented product

        Extra service with the product.

       TK 50 preloaded free talk time with 7 days validity

       1(One) year handset warranty

       Free T&T incoming during Super Off Peak hour

      (Till 25 th April 2006)

       No additional BTTB charge for local T&T outgoing

      (Till 25 th April 2006)

    Potential product

      A product which is not present in market.

Types of Products

Two types of product: (In terms of business)

Consumer Product

Consumer product means Product purchase for ultimate consumption. All types of packages those are provide CITYCELL for consumer that is consumer   product.

Types of consumer product are:

1. Convenience products

•       Staples products
•       Impulse products
•        Emergency products

2. Shopping products

3. Specialty products

4. Unsought products

  Product classification for Consumer Product

    Business Product

 Citycell provides many facilities to various companies in terms of increasing their sells. These types of product terms as a business product for citycell. In the police control room, rail office, traffic control room etc.

    Product Line

 All the product items of a company are called product line. There are four types of product line:

•  Product Width
•  Product Length
•  Product Depth
•  Product Consistency

Product Width

Number of product lines. There are two types of product lines. These are:

•    Pre-paid
•    Post-paid
• Product Length

Total number of items. CITYCELL have many packages under its pre-paid and post-paid category. All the products goes under this product length.

Product Depth

Size into variety.

 Product Consistency:

When same distribution channel use for all product that is called product consistency line. CITYCELL don’t use product consistency line.

Branding

Branding means a name, term, symbol, design, or combination there of that identifies a seller’s or company’s products and differentiates them from competitors’ products.

 CIYCELL uses its own brand. It’s brand name differs it from the other telecommunication company. Brand uses as a distinguish purpose for the company. A product’s success depends on the target market’s ability to distinguish one product from another. CITYCELL uses branding as these types of purposes. The marketing and management department of CITYCELL try to use the branding as the major tool in distinguishing their product from the competition.

A Brand can represent this entire feature. Such as-

•        Attributes
•        Benefits
•        Culture
•        Value
•        Personality
•        Users
• Branding Strategy

There are four types of branding strategy-

•        Individual name
•        Blanket family name
•        Separate family name
•        Company individual name

Under the branding strategy city cell fall in Individual name strategy.

Individual name:  Individual products individual name.

Branding

       Branding Strategy Decision

  Packaging

Activity of designing and producing the container or wrapper for a product.

Packaging used to just contain and protect the product.

  Factors to Consider When Making Packaging Decision

•        Protection
•        Visibility 
•        Added Value 
•        Distributor Acceptance 
•        Cost 
•        Expensive to Create 
•        Long Term Decision 
•        Environmental or Legal Issues

  Pricing

Price is the sum of all the values that consumers exchange for the benefits of having or using the product or service. In a m marketing mix without price all are cost and only price gives us revenue.

      Call charge for Aalap Classic

    Cost-Based Pricing VS. Value-Based Pricing

Citycell always tries to satisfy their customer by their pricing. For this they follow value-based pricing.

 Legal protection or blocked entries

Before 1996 after introduce city cell in to Bangladesh mobile market the govt. ruled that no mobile company did not enter the market of Bangladesh for one year. So in this time City cell charged skimming price.

Penetration pricing

Penetration pricing means price sensitive in market condition.

Citycell follows penetration pricing.

    Physicological Pricing

There are two types of  Physicological  Pricing such

as-

•       Range Rate Pricing.
•       Odd/Even Pricing.

Under this pricing strategy,  CITYCELL goes to

Range Rate Pricing Strategy.

  Place

CITYCELL Classic is our product. CITYCELL provide this product for all types of consumers through all over the country. As CITYCELL charged for CITYCELL Classic low price, generally low revenue earned people are their main customers.

 Marketing Intermediaries Used

Generally market intermediaries are used to making their product available in the market. As CITYCELL provide to consumer product and services. For this they also use marketing intermediaries to provide their product and services for consumer available in the market.

They provide channel 1 and channel 3. They have their own personal selling for this their customer can bye their product directly. Then they follow channel 1. When they want to provide their product to a long distance, then they follow channel 3, because they provide their product to the whole seller and then the retailer get product form them and customer buy product from the retailer.

 Channel function

Generally channel functions is done by the channel members, as whole seller and retailer.

      Marketing Channels Structure 

There are three marketing channels:

        1. Exclusive Distribution

        2. Selective Distribution

        3. Intensive Distribution

CITYCELL maintain selective distribution, because their product is special and with special brand name with selective intermediaries. Their main dealer is DIGI MOBILE.

  Conventional Marketing Channel Vs. a Vertical Marketing System

CITYCELL maintain conventional marketing channel. They  also maintain Vertical marketing system. Because The manufacturer of their product  provide that Straightly to the consumer by their selling center which is on17/2, Mohakhali C/A, Dhaka. First they provide it to the wholesaler. The retailers take products from the whole seller or CITYCELL ’s selling center .Customer take product from the retailer.

  Conventional Marketing Channel Vs. a Vertical Marketing System 

  Vertical Marketing System

There are three type of VMS such as-

•     Administered VMS
•     Corporate Systems
•     Contractual Systems

CITYCELL mainly maintain contractual system. They follow administered VMS

  CITYCELL Network Coverage

Promotion

Marketing communication mix

    Advertising

Any paid form of non personal presentation and promotion  of ideas, goods or services by an identified sponsor.(print, broadcast, outdoor and others).

They do two types of advertising:

Major advertising channel

     Personal Selling

Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships.

     Sales Promotion

Short term incentives to encourage the purchase or sale of a product or service.(sample, coupons, point of purchase and etc.)

     Public relation

Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image and handling or heading off unfavorable rumors, stories and events.(press releases and special events).

     Direct marketing

Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.(catalog, TV,phone, internet , kiosk and others).

   Advertising Objectives in Relation to Stage in the Product Life Cycle

Maturity

Decline

CITYCELL is in maturity level that’s why they do persuasive advertising and reminder advertising.

The Communication Process

Source

• The marketer
• The sender of the message

Encoding

• Designing of advertisements, sales presentations,
  P-O-P displays, etc.
• Translation of the message into symbolic form

Message

• Actual advertisement that contains the intended message
• Symbolic expression of the sender’s thoughts

Channel

• Television, radio, print media, telephone, direct mail, etc.
• Path through which the message moves to get to the receiver

Receiver

• Person or groups of persons for whom the message is intended

Decoding

• Process receiver uses to interpret the meaning of the message

Feedback

• Marketing research, market share changes, sales reports
• Attitude changes, purchase or non-purchase
• Gauge of effectiveness of communication techniques

Noise

• Interference at some stage in communications process
• Competitive promotional messages
• Misinterpretation of message or wrong receiver.

Steps in Developing Effective Communication

Step 1.  Identifying the Target Audience.

Step 2.  Determining the Communication Objectives Buyer Readiness Stages.

Step 3.  Designing a Message

Step 4.  Choosing Media

Step 5.  Selecting the Message Source (expertise, Trustworthiness, likeability)

Step 6.   Collecting Feedback.

CITYCELL generally follow the pull strategy.

 Setting the Total Promotion Budget

Affordable : Based on What the Company Can  Afford.

Percentage of Sales: Based on a Certain Percentage of Current or Forecasted Sales.

Objective-and-Task: Based on Determining Objectives & Tasks, Then  Estimating Costs Competitive-Parity: Based on the Competitor’s Promotion Budget.

CITYCELL follow mainly affordable and objective task method but some time follow all.

Five “M” of Advertising

Integrated Marketing Communication (IMC)

When all the promotion tools are used together to increase sells and profits that is called IMC.

CITYCELL follows the all the advertising tools. So  they follow the IMC.

People

For a company there are involve two kind of people. One is internal and another is external. Internal people are employees and external people are customers. They create interactive marketing.

Internal people: For internal people CITYCELL provide

following benefits-

•    Training
•    Motivation
•    Divide working hour transportation
•    Free mobile facilities
•    Give some special facilities for foreign technician
•    Employee can join the events which are sponsor by CITYCELL.

External people:

•    mobile service.
•    customer care.

Physical Evidence

Physical Evidence is Presentation, Grooming, and Interior Decoration of the company. There Physical Evidence is as follows:

•    Employees behavior
•    Well decorated office and customer care center.
•    Bill statements
•    Brushier
•    News letter

Process

 Process is System, Data Management, and Time Management of an organization. There are two kinds of process.

•    Standard process
•    Complex process

Recommendation

CITYCELL (Pacific Bangladesh Telecom Limited) is Bangladesh pioneering Communication Company and only CDMA network operator in the country. They are operate their work with trained operator so customer are always satisfy with there service. CITYCELL has also a good reputation in the market which is also a forward advantage of CITYCELL. Their feature plan is increasing there customer and they are trying hard for this. That day is not away when they rock the telecommunication world. So enjoying the CDMA technology.

 Bibliography

Through the all marketing report we get help from various sources. We use our text book, search in the Internet and many source that gain data.

• Marketing (9^th Edition), Philip Kotler and Gary Armstrong, Prentice Hall: India.

• Marketing Management (11 th and 12 th Edition ),

     Philip Kotler and Kevin Lane Keller.

• News Paper         

• www.citycell.com.org