Principles of Marketing, MKT 201, Sec: 01

Autumn 2016

Date of Submission: 9th November 2016

Submitted to: SUMAN SAHA Sir

Group Members

Name ID

Irfan Ibn Yousuf 1510960

Hosanna Sarkar 1510044

Renita Afreen Rahee 1510546

Sakib Ul Hoque 1510207

Syed Mustafa Tanveer Hasan 1510937

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Table of Contents

Company Summary Pg: 3

The Marketing Mix (4P’s) Pg: 5

Production Concept Pg: 9

BCG Matrix Pg: 9

Market Expansion Grid Pg: 12

Factors Influencing Consumer Purchase Pg: 14

Maslow’s Hierarchy of Needs Pg: 15

Personality Traits Pg: 15

Buying Decision Behavior Pg: 16

Market Segmentation Pg: 16

Target Market Pg: 18

Differentiation Strategies Pg: 19

Value Proposition Statement Pg: 19

Reference Pg: 20

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COMPANY SUMMARY
Zelta, is a mobile brand of Sky Telecommunication Limited. It is a joint venture of Partex Star
Group, Karnaphuli Group and Metro Group. Sky Telecommunications has started its journey on
September 19, 2015; With the Tag Line of “Sharing Minds” to connect and share the minds &
thoughts of millions of people through the best quality and most advanced technology in an
affordable price.

The focus of the company is to deliver outstanding nationwide customer service as it continues
to explore new horizons to deliver newer and better service and reach the best quality products to
its most valued customers. To connect all the valued customers, Zelta operates more than 100
dealers and 22 Customer Care centers all over Bangladesh.

We believe our fast-growing latest technology and superb customer services has been a driving
force behind the expansion and improvement of connectivity nationwide. We also believe that
through mobility, our society can be transformed for the better. Innovations and forms of
expression are finding a greater audience, industries and hierarchies are being revolutionized,
and we are seeing a fundamental change in the way we communicate, socialize and make
decisions together.

Mission: “Sharing Minds” - to focus on our customers' market challenges and needs by
providing excellent communication solutions and services in an affordable price in order to
consistently create maximum value for our customers.

Vision: To enrich life through communication.

Core Values: Our core values are deeply rooted in every aspect of
our business. They are the internal driving force for the company and
are our commitments to the ecosystem. These values enable us to
provide effective services to our customers and to achieve our vision
of "enriching people's lives through communication".

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 Zelta exists to serve customers, whose demand is the driving force behind our
development. We continuously create long term value for customers by being
Customers responsive to their needs and requirements. We measure our work against how
First much value we bring to customers, because we can only succeed through our
customers‟ „success.

We win customers‟ respect and trust primarily through dedication. It includes

Dedication every effort we make to create value for customers and to improve our
capabilities. We value employees‟ contributions and reward them accordingly.

Continuous improvement is required for us to become better partners for our

Continuous customers, improve our company and grow as individuals. This process requires
Improvement that we actively listen and learn in order to improve.

Driven by customer needs, we passionately pursue customer centric innovations

Openness & in an open manner. We believe that business success is the ultimate measure of
Initiative the value of any technology, product, and solution or process improvement.

Integrity is our most valuable asset. It drives us to behave honestly and keep our
Integrity promises, and, thus, win our customers‟ trust and respect.

We can only succeed through teamwork. By working closely in both good times
Teamwork and bad, we lay the foundation for successful cross-cultural collaboration,
streamlined inter-departmental cooperation and efficient processes.

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THE MARKETING MIX (4P’s)
In order to understand which strategy Nokia has used to achieve its objectives of regaining lost
ground in the Smartphone market, we will look at the marketing mix of the company. As
marketing strategy shapes the marketing mix for the products, the marketing mix will point to the
strategic choice of the company. The marketing mix is a synonym for 4ps, which is constructed
of the four most important components of every product‟s strategy - Product, Price, Place and
Promotion.

Product

Zelta‟s products vary moderately because the company has a couple of series of smartphone such
as Millennium as well as feature phone series. Product design also varies; the company has touch
screen products and classic button phones. Zelta‟s products have some great features that vary
from product to product. Zelta is known for great quality of its devices, and often offers
technologically advanced cameras. Millenium A100 is being seen with great interest in the
smartphone market currently. Alongside mobiles, Zelta also aims to produce tablets.

Smart
Phones

Millennium Q70
Millennium a100 Millennium Q100

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Feature
Phones

F15 F16
F18

Price

The prices of the Smartphone series

vary between Tk. 2895 and Tk.8199.
There is moderate price variability of
the products, so that the prices meet
every social class needs. Zelta also has
mobile phones below Tk.2000 that are
easily affordable and within the reach
of rural people with low incomes.

Zelta uses competitive pricing strategy

for its smartphones to beat competitors
such as Walton and Symphony that
occupy a greater market share in the
low end smartphone market.

With some of its feature phones however, Zelta has undertaken a penetration pricing strategy as
it has arrived recently in the market and aims to gain popularity in the rural areas by providing
the consumer with great quality but affordable feature phones. With this strategy, we aim to
reach the top of customer favorite‟s list by word of mouth.

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Place

Zelta is present through various channels in the market. It works on the channel marketing
concept which involves sales and service, dealers and distributors. The sales and service dealers
handle key accounts for Zelta and are involved in corporate sales. These dealers may also open
exclusive Zelta showrooms. Through distributors Zelta sells phones to retailers.

Promotion

Zelta uses multiple forms of promotions. Zelta as a company believes in pulling the customer to
themselves through advertising but at the same time uses strong tactics to push the product to the
customer through sales promotions.

Thus on one hand, Zelta uses various marketing vehicles across the year covering festive seasons
as well as non-festive times. On the other hand, it gives many offers and discounts to its trade
partners to motivate them to sell Zelta above competition. With such a strategy, Zelta‟s brand is
on the rise so that both, the pull as well as push strategy is working simultaneously in Zelta.

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VARIOUS PROMOTIONAL STRATEGIES
IMPLEMENTED BY ZELTA

Newspaper advertisement Newspaper advertisement showcasing the features of the Millennium

showcasing features of Q40 smartphone.
the A100 model featuring
our brand ambassador,
Ananta Jalil.

Zelta smartphone TV Commercial featuring our brand ambassador Ananta Jalil.

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Production Concepet
Zelta is using production concept to design and carry out its marketing activities. Production
concept is the idea that consumers will favor products that are available or highly affordable and
that organization should therefore focus on improving production and distribution efficiency. As
Zelta has 100 outlets all over the country, it makes Zelta mobile phones available and the prices
of the phones are reasonable making them highly affordable for the target market.

BCG matrix
The BCG matrix is based on the product life
cycle theory that can be used to determine what
priorities should be given in the product
portfolio of a business unit. To ensure long term
value creation, a company should have a
portfolio of products that contains both high-
growth in need of cash inputs and low-growth
products that generate a lot of cash. It has two
dimensions: market share and market growth.
The basic idea behind it is that the higher the
market share or the faster the market growth it
is better for the company.

The chart is divided into four categories:

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1. The Stars:

As the name makes clear, stars are those business units that have a large market
share in a fast-growing industry. These product lines have a clearly visible
market or niche leading path and require large amounts of funding to ensure that
they can fight of competitors and maintain their growth rate. Companies aim to turn stars into
their next cash cows with the inevitable decline in the growth of the industry. This can happen
potentially if they are able to maintain their position as a market leader. If this does not happen,
then stars can turn into dogs. For Zelta company, star products are the touch screened android
phones designed with up to date features and technical advancements which makes them costly
and generally has a lot od demand. It already has high market share and as well as growth. Star
products are most viewed by people as people are always going ahead with technically advanced
products therefore our stars will always be in demand in future. The earnings from cash cows are
invested in the stars. Star products of Zelta company are Zelta A series which has A 100 and Q
series which includes Q100, Q70 and Q20.

2.The Cash Cows:

The product lines that fall within this category enjoy a large share of the
market in a slow-growing industry. This means that they are able to
generate revenues in greater amounts than the investment required to
maintain their business. The product line may be considered boring and
settled in a mature market, with the company holding it to continue to generate revenues. The
company will attempt to milk these as much as possible with as little investment as possible. For
Zelta company buttoned or featured phone is the cash cow as it has covered a high market share
with low growth. It is the foundation product of the company. Technological advancements have
a great influence in low market growth but lower production cost and high affordability helps it
generate cash for the company. Company's cash cows are Zelta F series which includes Fh26,
F70, F90, F17.

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3.The Question marks:

The unknowns (also called question marks or problem children) are those
business units that have a smaller market share in a high-growth market. This is
where most businesses will start from and at this point the business unit has the
potential to grow market share and turn into a star or lose further marker share
and turn into dogs when the growth of the market itself declines. Careful study
and analysis is required for business units in this category to assess their potential and worth. If
any potential is seen, then further investment can be made into them. Till date the question mark
for the company is the tablets which the company has not yet launched. The tablets might work
as cash cows, stars or might turn into dogs.

4.The dogs:

The dogs are those product lines or business units that have a smaller
market share in a mature and slow-growing industry. Usually, these
product lines manage to earn what is put into them, breaking-even and
maintaining the market share. Generally, this unit is largely worthless to
the company in terms of earning potential but may afford other benefits to the company such as
the creation of jobs as well as synergies that assist other business units. These benefits may be
enough for the company to keep this business unit active despite its less than exciting position.
However, dogs can negatively affect how investors judge the management of a company and it is
suggested that these product lines be sold off. The company still does not have any dogs yet.

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MARKET EXPANSION GRID

Market Penetration:

The existing product of a company which they will offer in the

current market is called market penetration strategy. First of all,
company will be focusing on increasing sales and profits. The best
way to generate this strategy is to attract competitor‟s customers
and looking for potential customers for our existing products. Zelta
mobile offers a fast-growing latest technology and superb customer
services that has been a driving force behind the expansion and improvement of connectivity
nationwide. The company believes that innovation, forms of expression and low price rates are
the key elements to find greater audience and win a large market share.

Market development strategy:

Developing a new market for existing company product is called

market development strategy. This is the process of finding new
market for the new customer to increase company performance
by increasing sales and profits. The focus of the company is to
deliver outstanding nationwide customer service as it continues

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to explore new horizons to deliver newer and better service and reach the best quality products to
its most valued customers. To connect all the valued customers‟ Zelta operates more than 100
dealers and 22 Customer Care center all over Bangladesh.

Product development strategy:

Developing or modifying new products and offering to the

existing market is called product development strategy. This
strategy takes time and money for developing a new product.
Company needs to conduct a detailed survey to find out whether
it is feasible to introduce new product in current market.

Zelta is currently producing mobile phones only, but they are

trying to figure out if their upcoming Tablets will capture a
market share and create an impact on customers. They are also
planning to bring out accessories like power bank, headphones in the market which would
support their existing product.

Diversification Strategy: Diversification strategy is the development of new products in the

new market. Diversification strategy is adopted by the company if the current market is saturated
due to which revenues and profits are lower.

Zelta has no diversification strategy for itself. Zelta is a mobile brand of Sky
Telecommunication Limited. It is a joint venture of Partex Star Group, Karnaphuli Group
and Metro Group. So we can say that Zelta mobile itself is a diversified company, as Partex
Group primarily exists in two different areas – consumer durables like different types of boards
(particle board, veneer board, melamine faced chip board, plywood, PVC sheet) doors and door
frames & furniture to FMCG like dairy products, cookies, spices, etc. Then again Karnaphuli
Group port, shipping & logistics, media & publishing, health care, motorcycles, General
Insurance etc. Metro Group‟s business embraces in the area of Civil Construction Works,
Infrastructure Development, Land & Apartment Development, Manufacturing Pharmaceutical
Products and Trading Consumer Goods.

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Factors Influencing Consumer Purchase
The four factors that influence consumer purchase are:

 Cultural
 Social
 Personal
 Psychological

The factors that influence consumer purchase of the company‟s products are:

 Social
 Personal factors

Social factors such as family influences the consumer purchase of the company‟s products.
Family members can influence buyer behavior as children can influence their parents for buying
phones. Also, our family members can provide us with suggestions and advices of what products
to buy.

Personal factors such as age, occupation, and lifestyle can influence consumer purchase.
Mobile phone can attract people of different ages. Zelta has both featured phones and smart
phones. Therefore, consumers of any age can use it. A person‟s occupation affects the goods and
services they buy. Occupation can influence because having a phone can help people in their jobs
and also having a mobile phone can represent a person‟s standard, status etc. Lifestyle is a
person‟s pattern of living according to their interests, activities, and opinions. Mobile phones can
represent a person‟s lifestyle in terms of their interests. Zelta‟s target market are the people of
rural areas and also people who have low income. The lifestyle of these people can be enhanced
in their societies. Consumers don‟t just buy products, they buy the values and lifestyles those
products represent.

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 Maslow‟s Hierarchy of needs: Abraham Harold
Maslow was a psychologist who studied positive
human qualities and the lives of exemplary people.
In 1954, Maslow created the Hierarchy of Human
Needs and expressed his theories in his book,
‘’Motivation and Personality”

It falls into the category of esteem. Faster technology creates the platform to enhance the
productivity of products such as these. Technology has always a role to play on. Today, when
nobody can think of their prospects without technology; gadgets such as mobile phones are at the
first stage of defining the advancement of technology and the vital role they are playing. We
place it at the fourth stage of Maslow‟s hierarchy of needs because it turns out to be the desire
towards acquiring self-esteem. Zelta‟s target market are also people of rural areas and low
income people. Therefore, for them having a smartphone reflects their social class and status,
gives them confidence and respect in their society.

Personality Traits

The type of personality traits associated with Zelta phones are:

 Excitement
 Ruggedness

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Excitement: Zelta phones are new products. They have been launched recently. The products
are up to date, has many features, provides connectivity and speedy network.

Ruggedness: Zelta phones are outdoorsy and tough. It is structured in such a way that it can
withstand any major damage. In the advertisement of Zelta phones, the toughness of the phone is
showed. The product is outdoorsy because it is targeted to people of rural areas and low income
population.

Buying Decision Behavior

Complex buying behavior is portrayed in buying this company‟s products. Consumers undertake
complex type of buying behavior when they are highly involved in purchasing expensive,
infrequently purchased and risky products and perceive significant differences among brands.
Mobile phones have different brands and as the phones are targeted towards people of rural areas
and low income people they become quite expensive for them. Therefore, they are risky
purchases. So, for buying Zelta phones consumers undertake complex buying behavior.

MARKET SEGMENTATION

According to Bangladesh Telecommunication Regulatory Commission (BTRC), the total number

of mobile phone subscriptions has reached 117.758 million at the end of August, 2016. The
increase use of mobile service poses challenge for Zelta in mobile ecosystem to constantly meet
the dynamic change of needs and requirement of mobile users.

Through market segmentation, Zelta is able to distinguish behavior usage or preferences on

mobile services for each market segment and use this information to design or offer specific
product that meet the behavior or preferences of the user in each market segment.

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Today, most companies are moving away from mass marketing to market segmentation and
targeting. Market segmentation is splitting a market into smaller groups of buyers with distinct
needs, characteristics or behaviors that require individual products or marketing mixes.
Dimensions of market segmentation are:

Zelta segmented its market through all the dimensions.

1. Geographic Segmentation: Zelta's retail stores are located in highly populated cities
around the country. Zelta has 100 outlets all over the country in different cities and
regions. For rural regions, Zelta came up with stylish feature phones.

2. Demographic Segmentation: For businessmen, youth, and for people of different

occupation, Zelta targets middle class and low class income segments. It comes with
modern design which is targeting young or hi-tech users including touch screen, bigger
screen compared to other smartphones.

3. Psychographic Segmentation: Individuals from teens to mid-30's who like new

technology, tech savvy and can afford to buy it, plus pink range of mobile phones for
girls and cheaper touch screen stylish phones for lower income.

4. Behavioral Segmentation:

 Benefit Segmentation: When Zelta customers buy their phones the benefit they
expect from it is simple appearance, new and updated features and reasonably
priced.

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  Usage Rate Segmentation: The smartphones market has a lot of heavy users
because of the convenience of it, you can call, texts, send pictures, play games,
and listen to music and surf the web all from a smartphone.

 User Status Segmentation: As a new brand of mobile phones, Zelta does not
have any existing user. Therefore, Zelta is introducing new stylish design, better
customer service and reasonably priced smartphones for attracting first time and
potential customers.

Target Market

Zelta uses differentiated (segmented) marketing strategy to target several markets and design
separate product for each target market. Zelta targets range of consumers ranging from normal
day to day usage devices to industrial standard equipment. The usual target age group of
customers‟ ranges from the 20s to 50s or even older, as long as the person has the ability to
purchase and use the products that Zelta has to offer in the market.

Teenagers to early adults (age 14 to 25) this age group of Zelta product consumers is usually
Zelta's smartphone target customers as they are mostly technologically sharp. This group of
customers is growing as Zelta saw that this group has more spending power in recent years
compared to in the past.

Adults (age 26 to 50) this specific group of targets the largest portion of Zelta's target market as
this is the group of consumers that have the most ability to purchase any of the product Zelta has
to offer in the market.

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Differentiation strategies

 Product Differentiation: Zelta‟s smartphone‟s are packed with new cool features and its
durability and increased battery performance along with its stylish design allows Zelta to
stand firmly in the market.

 Service Differentiation: Zelta differentiated itself from the other mobile phone
companies through a number of authorized customer care services and retail outlets
throughout the country. Its speedy and careful delivery service is convenient for the
consumers.

Value proposition statement

Mobile phones are becoming increasingly intelligent. Previously they were only designed to
provide telephony services in mobile condition but now it evolves into smartphones which has
capability as essentially as mini-computers that can store and process information.

A value proposition is a promise of value to be delivered. The heart of every business is the
customers. Knowing the buyers is every bit as important as knowing the functions and features
of product present in the market, Zelta promises to provide advanced capabilities to its user
whether it is for business application, information gathering or for entertainment and
communication.

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Reference

1. http://www.btrc.gov.bd/content/mobile-phone-subscribers-bangladesh-august-2016
2. Prafulla Y. Agnihtri, Gary Armstrong, Philip Kotler, Principles of Marketing -13th
Edition
3. http://www.zeltamobile.com
4. http://www.thedailystar.net/business/global-business/zelta-mobiles-hit-market-146212

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