Term paper on Product Planning

Submitted to Dr Mizanur Rahman Dept of Management Information Systems Dhaka University

Submitted by Bazlur Rashid Student ID #608-15-08012 Dept of MIS

Executive Summary

WiMAX, meaning Worldwide Interoperability for Microwave Access, is a 4G telecommunications technology that provides wireless transmission of data using a variety of transmission modes, from point-to-multipoint links to portable and fully mobile internet access. The technology provides up to 3 Mbit/s broadband speed without the need for cables. WiMAX, 30 times faster than 3G mobile technology and 100 times faster than wireless data rates, can solve the problems of rural connectivity. WiMAX can replace GSM and CDMA cellular phone technologies, or increase capacity, used as a layover. It has been used as a wireless backhaul technology for 2G, 3G, and 4G networks in both developed and developing countries. As Bangladesh’s Telecom Industry is booming with a growing middle-class, experts expect a big demand for broadband wireless services and WiMAX. Bangladesh will have around 12 million WiMAX subscribers by 2012, as BTRC expects. Banglalion is going to introduce wireless internet services from the end of this year. As the marketing officer of BanglaLion I have prepared the following marketing plan.

Table of Contents

Current Marketing Situation 1

Opportunity and issue analysis 1

Objectives 2

Marketing Strategy 2

Action Programs 3

Financial Projections 3

Implementation Controls 4

Current marketing situation

The Internet came late to Bangladesh with connectivity in 1996. In the last few years it has grown dramatically, although obviously from a very low base. With an estimated user base of more than 500,000 by mid-2008, representing only a 0.4% penetration due to high cost and low quality of service, the local Internet industry has been preparing to move into the next stage of its development.

The country’s telecom regulator auctioned off three WiMax licensees in August last year in an effort to tap into the business potentials the high-speed broadband services can generate. BanglaLion Communication, BRAC BD Mail Network Ltd and Augere Wireless Broadband Bangladesh Ltd won the bidding by agreeing to pay US$215 million each. However, BRAC later refused to take the license. Augere Wireless Broadband Bangladesh Ltd has teamed up with two local entities Aaamra Resources Limited and Teleport Bangladesh Limited, in providing this state-of-the-art service to a country with one of the lowest internet penetration rates in the world. Initially, Augure’s service would be limited to a few areas within the Dhaka city; offered experimentally to some selected end users. However, the company is expecting to bring the whole Dhaka city and Chittagong under its coverage by the fourth quarter of this year.

Opportunity and issue analysis

BanglaLion has already got the frequency at 2.5GHz form BTRC and our foucs is only on the installation of the equipments and lunching of commercial services. On the other hand our only competitor Augere is having frequency issues and then can only start trial after August, which cause their delay in commercial launch. Another important thing is our customer resdponse-Already around 50,000 users have registered online to subscribe to our service Issues to consider:

1. Should we expand to other cities than Dhaka and Chittagong within next year?

2. Whether to introduce various types of connections those differ much in tariff?

3. Shall we introduce packages with modems or not.

Objectives

Banglalion’s financial objectives are:

• Earn an annual rate on return on investment of 10% after taxes over the next five uears.

• Achieve first year total sales revenue of 300 million BDT Based on average price of 600 BDT per month.

Banglalion’s marketing objectives are:

• Achieve a first year connection sales volume of 40,000, which represents a projected market share of 8% with one service in product line.

• Increase second year share to 15% on sales of two types of connections in product line.

• Generate a 60% brand awareness within the consumer target market and 75% brand awareness in the business target market at the end of next year.

Marketing Strategy

On the consumer side the target market is lower-middle to upper-most income professionals and other internet surfers’ currently using dial up or cable connections and eagerly waiting for higher speed and wireless wimax internet broadband services. Also the small businesses that are paying relatively high for the internet connections are not satisfied with the speed.

Positioning: Long wait for high- speed wireless broadband finally over

Product management:

Banglalion has settled with French technology giant Alcatel-Lucent, which would initially supply 100 base stations (BTS) to be set up in the capital. We hope we can now set up the BTS as early as possible and launch our experimental services by the middle of next month Banglalion’s network would be extended to 300 BTS to cover the whole Dhaka city by the end of this year and initiate commercial services.

Pricing:

1. Home User/Individual for Tk 600/Month

2. Corporate (5-10 users) for Tk 550/Month

3. Corporate (Above 10 users) for Tk 500/Month

Distribution:

Will be distributed through customer care centers as well as best known computer retailers

Marketing Communication:

Create an advertising campaign to build brand awareness, emphasize trade sales promotion to support distribution strategy; develop a high profile product lunch strategy to generate publicity and media coverage.

Marketing research:

Measure brand awareness before, during and after marketing campaigns; study customer satisfaction and identify opportunities for future product development efforts.

Action Programs

Banglalion will carry out marketing strategy and achieve its objectives through a variety of scheduled programs. In December It plans to initiate a 50 million BDT trade sales promotion to educate the dealers and customer managers and generate excitement for the product lunch in January. As the part of the product push, Banglalion will participate in the international trade show.

Financial Projections

The first year sales revenue is projected at 500 million BDT considering the average number of users is 70,000. On quarterly basis, Banglalion projects sales of 65 million BDT, 100 million BDT, 110million BDT, 125 million BDT on the basis of cumulatively higher business sales and grabbing the current broadband users. Every action program carries its own financial assumptions, as well as managerial assignments and scheduling details, in turn these financial projections lay the foundation for planning in the installation, human resources, research and development, and finance and accounting departments.

Implementation Controls

The marketing plan and budget for the four quarters of the first year are

|Quarters |Budget in million BDT |Goal in million BDT |
|1St |80 |65 |
|2nd |70 |100 |
|3rd |70 |110 |
|4th |65 |125 |

Contingency plan:

For downsizing pressure of price well will have to downsize the cost, therefore reducing the number of BTSs.