BUS101 proj

8/6/2019 BUS101 proj

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BUSINESS PLAN ON CELLCOM LTD. BANGLADESH

EXECUTIVE SUMMARY:

CELLCOM Ltd. is a fast growing mobile telecommunication. Considering the importance of

customer satisfaction, this project was designed to assess the satisfaction level of CELLCOM¶s

subscribers. Although CELLCOM has been operating for 2 years in the market of mobile

telecommunication industry, its customer¶s are not fully satisfied with their network services. If

CELLCOM does not take care of these dissatisfactions and other company enters the market

with similar offers, it will be difficult for CELLCOM to keep remain in the current market.

CELLCOM has been successful to build a good image in comparison to the other operators. Inother words, CELLCOM has a clear advantage over the competitors. CELLCOM has some

additional features in comparison to its competitors. It is playing a vital role to increase the

subscribers of CELLCOM. Moreover, CELLCOM subscribers are happy with the low call rate.

In spite of this, CELLCOM users are not satisfied with customer care service and network

service of the company. Most importantly, a significant portion of the CELLCOM subscribers

were found not fully loyal toward the company. CELLCOM connections are not always

available. This is especially true for the pre paid service. Sometimes, the subscribers need to pay

extra money to get this service. Subscribers need to spend significant amount of time to reach the

customer care. In some cases the behavior of the helpline CM¶s (Customer Manager) is also

questionable. If any other company comes up with same sort of services, the CELLCOM

subscribers might switch to that company. By increasing base stations and sales and service

centers, getting skilled Customer Managers CELLCOM can eliminate the dissatisfactions and

thus earn a sustainable distinct competitive advantage to continue their business.

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1.COMPANY OVERVIEW:

CELLCOM, One of the newest telecommunications service providers in Bangladesh, received its

operating license in July 2008 and started its service from January 13, 2009. Now, after 2 years

of successful operations, CELLCOM is among the famous mobile phone service providers in

Bangladesh, with more than 3 million subscribers as of December 2010. CELLCOM is providing

services to rural and urban customers across Bangladesh, where mobile telephony is

acknowledged as a significant driver of socio-economic development, both for individuals and

the nation. At the end of 2010, it had about 2500 base stations around the country with plans to

add about 2000 in the following six months. CELLCOM¶s stated goal is to provide cost-effective

and quality cellular services in Bangladesh. CELLCOM¶s head office is located at 205,

Baridhara Lane, Plot- 87, Gulshan, Dhaka. CELLCOM leases its 10,000 square feet head

office which has adequate office space to conduct its operations. At some point in the future,management expects to outgrow this office space.

2.GOALS AND OBJECTIVES

CELLCOM¶S MISSION:Leading the industry and exceed customer expectations by providing the best wireless services,

making life and business easier and lead the industry in a responsiveness and flexibility. We exist

to help our customers get the full benefit of communications services in their daily lives. We¶re

here to help. We want to build leading-edge-imp-leveraged solution and advanced by our

unmatched global infrastructure and leadership in emerging market.

CELLCOM¶S VISION:CELLCOM¶s vision is to be the number one telecommunication service provider in Bangladesh.

We want to see ourselves in the top position within next 3 years. We want to promote an

environmentally, socially and economically responsible, successful and sustainable mobile

telecommunication industry in Bangladesh. CELLCOM aims to achieve its vision by:

Effective industry representation and leadership.

Generating consensus on whole-of-industry issues.

Improving the level of trust between the industry, related industries, key stakeholders and

the wider community.

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3.MANAGEMENT HIERARCHY:Our company has a world class management team with direct knowledge of the industry,

extensive research experience, and unique administrative skills. Its team includes MD. Nazrul

Islam, John Hoffman (Board of Directors) and Drake Austin (CEO) . Together, they have a

combined total of over 15 years experience in the cellular and retail industries. In the future,

CELLCOM expects to require a highly qualified CFO, HR manager, additional customer service

personnel, additional sales reps, and a public relations manager. Our company will be organized

into three primary functional disciplines: Marketing and Sales, Operations and Product

development and Finance and Administration. Each will be managed by a senior executive who

reports to the Chief Executive Officer. So, we¶ve design our chain of command by setting three

level of management- Top level management, Middle level management and First line

management.Top Level/ First Level Management:

Chief Executive Officer (CEO), Assistant Chief Executive Officer, Chief Financial Officer,

Chief Marketing and Sales Officer, Chief Technology officer and Chief Production Officer are

the top level managers. Chief Financial Officer, Chief Marketing and Sales Officer, and Chief

Production Officer are responsible to CEO and they are to take the major decision in their

particular area of function.

Middle Level/ Second Level management:

Mid level management consists of all large number of managers experienced in their particular

field of function. This level of management is very important because they are responsible for

implementing the plan. This level of management should posse necessary skill and also sound

academic background. We¶ve planned the mid level management with production manager,

service manager, financial manager, accounts manager, marketing manager, sales manager,

network manager. They will be responsible to the top level management.

First Line Staff:

We plan to set up a dynamic, energetic staff line those who will be named as executive. Eachfunctional department will have enough number of executive. This level of management will be

heart of the organization because they will carry on the day to day activities of the organization.

The output or quality of service will largely depend on how efficiently they can perform. The

number of executive will be depended on the nature of function of a particular area.

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This Organogram will give the clear and full view of our management hierarchy ±

Organogram of CELLCOM¶s Management Hierarchy

Chief

Executive

Officer

(CEO)

Chief Technology

Officer

Chief

Production

Officer

Chief

Marketing

and Sales

officer

Chief

Financial

Officer

Finance

Manager

MarketingManager

Account

Manager

Promotion

Manager

Production

Manager

Network

Manager

Service

Manager

Technology

Manager

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Board of

Directors

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4.MARKETING PLAN:

In Telecommunication Company, services and benefits contribute the most to make a product

successful. So we will also try our level best to attain customer satisfaction. CELLCOM¶s core

offering is Telecommunication and Data service. CELLCOM will provide this Telecommunicating and

Data service with variations. Our product line will be much deeper than other competitors. There will be

new packages. Those attractive packages will be designed to cater to the needs of the individual

subscribers as well as corporate subscribers. There are already several packages and services currently

being offered both Telecommunicating and Data service by CELLCOM. More new will be provided.

These are:

TELECOMMUNICATION:

Prepaid Package

KOTHACall charge of out going to our operator is 0.49 tk/min and to other operators is 1.20 tk/min. All

subscribers will enjoy T&T and ISD incoming and outgoing facility. For this package Special

time is applicable. In special time (12 pm to 4 pm) and (12 am to 8 am) a subscriber can be able

to talk in a lower rate of 0.30 tk/min to the same operator.

AMITY

In this package a subscriber can be able to activate 7 FnF numbers and talk only 0.49 tk/min for

24 hours. Call charge of outgoing to other numbers is 0.99 tk/min A call generation charge of

0.30 tk/min will be added in the first minute. All subscribers will enjoy T&T and ISD incoming

and outgoing facility also.

RATRI

Call charge of RATRI of outgoing to same operator is 0.49 tk/min and to other operators is 1.20

tk/min. All subscribers will enjoy T&T and ISD incoming and outgoing facility. RATRI package

will give a very low rate in the night and the rate is only 0.20 tk/min. Besides subscribers will

have 3 FnF numbers activation. They will be able to talk 24 hours at 0.30 tk/min to the FnF

numbers.

YOUTH

For young generation. Call charge of YOUTH is 0.60 tk/min to any operators 24 hours. Here

they will enjoy 4 FnF numbers activation charging 0.25 tk/min for 24 hours.

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OTHERS

There are some other mobile services that we will provide to our customers. They are-

Call Block - Subscribers can easily block unwanted calls anytime.

Mobile Backup- This service will provide a safe and secure way of string important data.

Missed Call Alert- Through missed call alert users will get notification about the calls

that they missed for keeping mobile switched off.

SMS/MMS services- Besides there will be MMS, voice SMS, International SMS,

International MMS, E-Billing, Vehicle tracking, Balance transfer, Facebook SMS and

many other services.

DISTRIBUTION

As we are a new company .Our budget is definitely not that high. As a result, at the beginning we

cannot put our own outlets everywhere. So at first we will try have our outlets in the most three

important cities like Dhaka, Sylhet and Chittagong. In Dhaka our outlets will be in Gulshan,

Dhanmondi, Motijheel and Uttara because most of the educational institutions and corporate

offices are there. Besides we will have some temporary outlets on the road so that people can

easily visit our outlets and can from there. Not only this, we will also give our product to the

retailers so anyone can get them from retail shops.

PROMOTION

Success of a product is not possible without promotion. So we will also give a lot of importance

to promotion. Our promotion ways will be-

Newspaper: Newspaper is the most effective and common way of

advertising. So our main way of promotion will be newspaper so that many

people can get to know of our new products and services.

Television: Television is another source of promotion but it is very

expensive. So we will try to show our advertisement less in television but at

the time when everyone can notice it.

Billboard: We will also promote our product through billboard. We will use

the billboards of busy roads and also near the bus stands so that many people

can notice while in traffic jam and waiting for bus.

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Sales Promotion: We will also do temporary sales promotion. At the

beginning of our new business we will charge 20% less than the regular

price, we will also arrange raffle draw or give prizes through scratch card

offer and also free internet service for a certain period of time so that people

will get attracted by it.

Others: We will also campaign by giving some free SIM cards to some

students and some corporate people. If they like our product and service,

they will definitely tell others about our features. So it will also be one kind

of effective promotion.

5.FINANCIAL PLAN:

Projected Profit and Loss account:

Year 1 Year 2 Year 3

Sales $837,350 $15,320,000 $42,235,000

Direct Cost of Sales $0 $0 $0

Production Payroll $178,400 $220,000 $265,000

Network expense $120,000 $250,000 $500,000

Total Cost of Sales $298,400 $470,000 $765,000

Gross Margin $538,950 $14,850,000 $41,470,000

Gross Margin % 64.36% 96.93% 98.19%

Operating Expenses

Sales and Marketing Expenses

Sales and Marketing Payroll $203,850 $540,000 $930,000

Advertising/Promotion $270,000 $1,000,000 $2,000,000

Trade Shows $10,000 $30,000 $60,000

Travel $36,000 $100,000 $200,000

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Marketing Collateral & Supplies $21,000 $75,000 $150,000

Publications $6,500 $20,000 $40,000

Demos and Samples $10,000 $50,000 $100,000

Total Sales and Marketing Expenses $557,350 $1,815,000 $3,480,000

Sales and Marketing % 66.56% 11.85% 8.24%

General and Administrative Expenses

General and Administrative Payroll $336,000 $670,000 $905,000

Sales and Marketing and Other Expenses

$0 $0 $0

Depreciation $36,000 $290,000 $790,000

Leased Equipment $17,000 $35,000 $75,000

Utilities $9,000 $20,000 $40,000

Insurance $12,000 $25,000 $50,000

Rent $26,000 $50,000 $100,000

Other $0 $0 $0

Payroll Taxes $165,198 $328,900 $483,000

Other General and AdministrativeExpenses

$0 $0 $0

Total General and AdministrativeExpenses

$601,198 $1,418,900 $2,443,000

General and Administrative % 71.80% 9.26% 5.78%

Other Expenses:

Other Payroll $0 $0 $0

Consultants $0 $0 $0

Contract/Consultants $0 $0 $0

Total Other Expenses $0 $0 $0

Other % 0.00% 0.00% 0.00%

Total Operating Expenses $1,158,548 $3,233,900 $5,923,000

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Profit Before Interest and Taxes ($619,598) $11,616,100 $35,547,000

EBITDA ($583,598) $11,906,100 $36,337,000

Interest Expense $22,625 $9,500 $0

Taxes Incurred $0 $2,901,650 $9,034,863

Net Profit ($642,223) $8,704,950 $26,512,137

Net Profit/Sales -76.70% 56.82% 62.77%

Projected Balance Sheet:

Year 1 Year 2 Year 3

Assets

Current Assets

Cash $140,074 $2,890,822 $16,037,499

Accounts Receivable $398,465 $7,290,239 $20,098,122

Inventory $20,000 $20,000 $20,000

Other Current Assets $10,000 $10,000 $10,000

Total Current Assets $568,539 $10,211,060 $36,165,621

Long-term Assets

Long-term Assets $360,000 $1,360,000 $3,360,000

Accumulated Depreciation $36,000 $326,000 $1,116,000

Total Long-term Assets $324,000 $1,034,000 $2,244,000

Total Assets $892,539 $11,245,060 $38,409,621

Liabilities and Capital Year 1 Year 2 Year 3

Current Liabilities

Accounts Payable $64,762 $402,333 $1,054,756

Current Borrowing $190,000 $0 $0

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Other Current Liabilities $0 $0 $0

Subtotal Current Liabilities $254,762 $402,333 $1,054,756

Long-term Liabilities $0 $0 $0

Total Liabilities $254,762 $402,333 $1,054,756

Paid-in Capital $1,337,500 $2,837,500 $2,837,500

Retained Earnings ($57,500) ($699,723) $8,005,228

Earnings ($642,223) $8,704,950 $26,512,137

Total Capital $637,777 $10,842,728 $37,354,865

Total Liabilities and Capital $892,539 $11,245,060 $38,409,621

Net Worth $637,778 $10,842,728 $37,354,865

6.CONCLUSION:

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

communication. Since its inception in 2009, CELLCOM has done well to enhance its customer

loyalty operating as a market challenger in this oligopoly industry. CELLCOM is one of the

famous cellular companies in Bangladesh. Their performance and quality of the service mainlydepends on their experiences and efficiency. CELLCOM believes in service, a service that leads

to good business and good development. Telephony helps people work together, raising their

productivity. This gain in productivity is development, which in turn enables them to afford a

telephone service, generating a good business. Thus development and business go together. It has

segmented the market based on certain clustered preferences deploying multi-stage segmentation

approach to meet individual needs of the customers. Launching of its new services would also

close its existing service gaps to a great extent ensuring satisfaction and loyalty.

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BUS101 proj