Business Environment (BUS-404)

Presentation on
bkash
 Submitted By

SL NAME ID INTAKE
1 Md. Nahid Hasan Iman 16171101030 41st
2 Md. Rafikul Islam 16171101024 41st
3 Md. Naymul Hasan Nayan 16171101006 41st
4 Md. Mostafijur Rahman 16171101035 41st
5 Md. Sohag Hossain 16171101031 41st
6 Md. Yasin Ali 16171101001 41st
7
 Company Profile

●In July 2011, bKash was launched in Bangladesh.

●bKash Limited, a subsidiary of BRAC Bank
●started as a joint venture between BRAC Bank Limited, Bangladesh and Money in
Motion LLC, USA
●In April 2013, International Finance Corporation (IFC), a member of the World Bank
Group, became an equity partner
●In April 2014, Bill & Melinda Gates Foundation became the investor of the company
➢More than 90% in Bangladesh have mobile phones.
➢over 68% have mobile phones and bKash was conceived primarily to utilize these
mobile.
How To Open A Bkash Account
 After first stage of the Account opening, you need to
activate your bKash Mobile Menu. Follow the steps below
to activate your mobile menu-
 Benefits

Bkash, as a mobile financial service provider promises its users five core
benefits which are fast, affordable, secure, convenient and nationwide.
These benefits are described in a brief below:
• Fast
• Affordable
• Secure
• Convenient
• Nationwide
 LEPESTC ANALYSIS

LEPESTC STANDS FOR "LEGAL, ECOLOGICAL, POLITICAL, ECONOMIC, SOCIAL,

TECHNOLOGICAL AND COMPETITIVE" AND IS USED FOR BUSINESS AND STRATEGIC
PLANNING, MARKETING PLANNING, ORGANIZATIONAL CHANGE, BUSINESS AND
PRODUCT DEVELOPMENT AND RESEARCH REPORTS. BY UNDERSTANDING THESE
EXTERNAL ENVIRONMENTS, ORGANIZATIONS CAN MAXIMIZE THE OPPORTUNITIES
AND MINIMIZE THE THREATS TO THE ORGANIZATION.
 Legal
• consumer laws,
Competitive • safety standards,
• labor laws .
• Roket
• Guidelines on Mobile Ecological
• UCash Financial Services (MFS) • Air,
• M-cash • Mineral .
• Ok Etc.

Technology
Political
• Technological Device • Parties disputes
& infrastructure • Government Rules.
• Using ATM Device

Social Economic
• Utility bill payment, • GDP Calculation
• Fund Transfer, shopping, • GNP
• Cash withdrawn from selected • Receiving international remittances
ATM or Cash point • Paying utility bills
LEPESTC summary:
Legal Positive
Ecological Positive
Political Positive
Economy Moderate
Social Positive
Technology Negative
Competitive Positive
 Stakeholders
Established in 2010 by founding shareholders, BRAC Bank Limited and Money
in Motion LLC, bKash is running a network of more than 180,000 agents
throughout urban and rural areas of Bangladesh with over 30 million registered
accounts. International Finance Corporation (IFC) and the Bill & Melinda Gates
Foundation have been shareholders in bKash, since 2013 and 2014 respectively.
China’s Ant Financial Services Group, which operates Alibaba-linked payment
platform Alipay, had 20 per cent stake in bKash Limited, 20 percent of bKash,
Bangladesh’s largest mobile money company. (26/04/2018).
 SWOT Analysis
A SWOT analysis is one of the most important logical tools. It is one of
the time verified tools that have the capability to allow an organization
to effectively reply to changes about it. The benefits of a SWOT analysis
are that it offers energetic knowledge so that the organization can
survive and prosper. So the calculation of strengths, weakness, as well
as opportunities, and Threats is a must-to-do task for management.
 STRENGTH

• Powerful market position.

• High Technology and simple banking • Unique advertisement and marketing strategies
• Continuous partnership development with bill payment and merchant payment
• Wider range of services & innovation (Service differentiation)
• Correct management of relationship with customer.
• Service availability in major mobile network operators
• Capability to attract foreign investors (e.g. Money in Motion, IBM)
• Stronger customer care (24 hours call centers for bKash subscribers)
• The parent organization BRAC is well reputed and recognized NGO
• Opening a bKash account is free.
 WEEKNESS

• Complicacy in payment system.

• Difficult rules and regulations.
• Not attractive employee packages.
• Higher Service charge
• Comparatively less efficient management of IT system
• Lack of external security
• Cash unavailability
• Unavailability of Bengali language service menu
• Centralized management system
• Total monthly transaction amount is limited
• Service Excellence does not meet customer expectancy.
 OPPORTUNITY

• The organization can continuously have a great upcoming with its well-trained
human resources.
• Possibility of penetrating market over different types of products.
• Wide mobile network coverage and large number of active mobile phone
subscribers, over 114 million, provides a large target market.
• Flexible rules and regulations
• Traditional banking services do not reach to rural and remote areas.
• Traditional banking hours are inconvenient and it is difficult to open as well as to
maintain a bank account.
• High growth of SME and online businesses
• Hassles in traditional bill payments
• Lack of safety and security in the street
• Increasing no. of population
• Technological advancement in adding value to the services.
• Opening ATM booths in less-developed zone
 THREATS
• Absence of national and global political constancy.
• Additional options current in the market such as credit cards.
• Absence of invention in product and service.
• Sudden change of rules, regulations, conditions and taxation policies.
• Corruption of the government and the authority
• Hacking, fraud, and abuse of the service
• Legal allegation concerning money laundering, financing criminal
activities.
• Yellow journalism and rumors
• Few mobile network operators.
• High competitive rivalry
 Marketing Strategy of bKash
The marketing logic by which the company hopes to create this customer value and achieve these profitable
relationships with the customers is the marketing strategies. The company decides which customers it will serve
(segmentation and targeting) and how (differentiation and positioning). It identifies the total market and then
divides it into smaller segments, selects the most promising segments, and focuses on serving and satisfying the
customers in these segments. Guided by marketing strategy, the company designs an integrated marketing mix made
up of factors under its control product, price, place, and promotion (the four Ps). To find the best marketing strategy
and mix, the company engages in marketing analysis, planning, implementation, and control. Through these
activities, the company watches and adapts to the actors and forces in the marketing environment.

Designing a Customer-Driven Marketing Strategy

Segmentation Create Value for Differentiation

Targeted
Select Customers Decide On value
To Serve Proposition
Targeting Positioning
Customer Segments:
BKash segments its customers according to
I) Similarity in needs and
II) Response to similar marketing program
Market Targeting:
• After evaluating different segments, the company must decide which
and how many segments it will target. A target market consists of a
set of buyers who share common needs or characteristics that the
company decides to serve. Market targeting can be carried out at
several different levels. Companies can target very broadly
(undifferentiated marketing), very narrowly (micromarketing), or
somewhere in between (differentiated or concentrated marketing).
• Bkash is using the undifferentiated (mass) marketing strategy as they
have mobile banking (product) the only product to serve whole
market they have targeted.
 Differentiation:
For a company to gain competitive advantage, it must do so by making efficient and innovative use of
both its resources and capabilities, to build core-competencies, which through the implementation of
effective strategies can be transformed into the company’s comparative advantage.
The resources of Bkash include:
• Strong Customer Base,
• Brand Value and recognition,
• Financial resources, country wide coverage, ‚
• Strong network of agents, accessibility, ‚
• And wide range of services
Capabilities of bkash include:
• Providing an efficient, competitive and simple mobile banking ‚
• Marketing and Branding ‚
• Maintaining customer relationship ‚
• Raising funds from international donors ‚
• Continuous partnership establishment with business and NGO to provide payment services‚
• Maintaining and developing technology platform. ‚
Positioning:
Position part is comprised of mission, vision and values of any company. The
mission of bKash is- by providing financial services that are convenient,
affordable and reliable; bKash aims to widen the net of financial inclusion.
bKash wants to provide a solution for Mobile Financial Services, built on a
highly scalable Mobile Money platform, allowing the people of Bangladesh
to safely send and receive money via mobile devices.
The vision of the company is to ensure access to a broader range of financial
services for the people of Bangladesh. It has a special focus to serve the low
income masses of the country to achieve broader financial inclusion by
providing services that are convenient, affordable and reliable. The core
values are comprised of integrity, quality, reliability and innovation.
 Marketing MIX

Products And Service:

bKash is offering the below mentioned products and services to all of
it’s users:
• Cash Out
• Cash in
• Send Money
• Payment
• Buy Airtime
• International Remittance
• Interest on Savings
 Price:
Service Amount per Transaction Maximum Amount Charge

Minimum Maximum Per Day Per Month Transaction (TK)

(TK) (TK) (TK) (TK)

Cash-In 50 125,000 125,000 125,000 Free

Cash-Out from Agent 50 125,000 125,000 125,000 0.925 per 50 taka
Cash-Out from ATM 2,000 20,000 20,000 50,000 Tk. 40 per 2000 Tk.
Transfer/Send Money 10 10,000 10,000 10,000 Tk. 2 for any amount

Payment (merchant) 1 No Limit No Limit No Limit Free

Receive International 50 125,000 125,000 250,000 Free
Remittance
Place:
Bkash has over 100000 agents across the country ready to deliver their
services to anyone that wants to make use of bkash services.
Furthermore they have a helpline to help their customers with any
queries or difficulties they may be facing. Bkash customer care centers
can be located in many cities.
 PROMOTION:
UNIQUE BRANDING AND ADVERTISING STRATEGY IS ONE OF THE KEY FACTORS OF BKASH’S EARLY
LEADERSHIP AND SUCCESS IN M-BANKING INDUSTRY. THE MARKETING TEAM IS CONTINUOUSLY
WORKING TO COME UP WITH INNOVATIVE ADVERTISING AND PROMOTIONAL IDEAS. HENCE, THEY
ARE DOMINATING THE MARKET IN TERM OF CUSTOMER BASE AS WELL AS THE MARKET SHARE.
• ADVERTISING AND BRANDING STRATEGIES
• BILLBOARD
• WALL PAINT
• TV COMMERCIAL
• BOAT BRANDING
• POINT-OF-PURCHASE ADVERTISING
• CAR STICKER
• PUBLICITY AND PUBLIC RELATIONS
• BKASH DRAMA
 Limitation

• No recovery system of Money

• Higher service charge
• Not Available agent
• Less External Security
• Agency’s insufficient fund
 Recommendations
These suggestions are given with bKash’s improvement in attention:
1. one of the important problem is attendant is often not available during holidays.
Authority should give correct attention to this matter.
2. Two queries has been complete about the security of the payment structure.
bKash must to train the agents to attain trust of possible customers.
3. bKash should take required steps to inspire the super shops and shopping malls
to receive the existing bKash structure for payments
4. bKash may reduction the charges of cash out. Before the number of daily bKash
users will increase. So bKash’s income from the service charges will also increase.
5. Empathetic consumers’ problems is not decent sufficient. Proper individual care
as well as thoughtful should be provided in order to attain customer satisfaction.
 Conclusion

The mobile financing industry is growing at excellent pace. While it took

few years for bkash to reach 15 million, DBBL have 10 million within two
year. Beside this all the other companies have huge potential to increase
their market share, because the industry is in very early stage. There is huge
opportunity for the new interns in the industry.
At the wrapping up it can be said the bkash limited still working hard to
grab the market although they are the market leader with 71% market
share. But the competition of this industry developed rapidly. But yet bkash
is in a comfortable place in this industry but mot in a secure place. To retain
the market leader position bkash is introduce new services. If they can
continue to cater to the needs of their customers like they are doing now,
they have a bright future ahead of them.
Next preseNter….
 Background Analyses.

• bKash is dedicated to widening the net of financial inclusion among the

people of Bangladesh by facilitating money transfer through mobile
phones. bKash provides Mobile Financial Services allowing customers to
send, receive, and pay money from their mobile phones. Send and receive
money, or make payments the fastest way there is! bKash enables you to
send money to anyone, using an advanced technology available on your
own mobile phone. The recipient will receive money instantly, no matter
where s/he is. Payments through bKash also make your life easier as you do
not have to go back home or anywhere else to get money when you need
to buy something and have run out of cash. Even if you don't have the
required amount in your bKash Account, someone else can easily send you
the amount in times of need.