Customer Satisfaction on Distribution channel of Grameen Distribution
Subject: Organizational Behavior | Topics:

The main objective of this report is to analysis Customer satisfaction Analysis on distribution channel of Nokia Handsets, here focus on Grameen Distribution Limited. Other objectives are present an overview of Grameen Distribution process and identify the types of buyer involved in buying process. Finally identify the customer satisfaction regarding distribution channel and evaluate various factors which influence in customer buying decision.

Objectives:

In every study there should be specific and sound purposes and objectives. A careful statement and purpose helps in the preparation of a well-decorated report on which others can take a right type of decisions. So, identifying objectives are very much important.

Broad Objective

The objective of this report is “Customer satisfaction Analysis on distribution channel of Nokia Handsets”. A case of Grameen Distribution.

Specific Objectives:

  • To present an overview of Grameen Distribution process.
  • To identify the types of buyer involved in buying process.
  • To identify the customer satisfaction regarding distribution channel.
  • To evaluate various factors which influence in customer buying decision.

 

Methodology:

Type of research design

In order to meet the objectives of the study two types of research have been conducted Descriptive.

Sources of data collection

Primary and secondary data were collected for preparing this report.

Primary data collection: Data and information from primary source has been collected through

  • Discussion with Key informant (Senior Officers of GDL)
  • Questionnaire Survey
  • Observation

Secondary data: Secondary data were collected from various website publications,   various documents stated in written form.

Questionnaire development and pre-testing

The questions in the questionnaire were framed keeping the broad and specific objectives in mind. The objectives were set according to the problem statement and the findings to the secondary information that had been collected earlier.

On basis of the findings of the above observations the questionnaire was restructured and redesigned.

The questions placed in the questionnaire were very simple. We have made a questionnaire with the combination of open ended, close ended and multiple choices.

 

Sampling plan

Population

The population of the survey consists of 50 Nokia users, corporate client and 18 RDS of the Grameen Distribution ltd. in Bangladesh.

Sample Unit

The sample unit of the survey is an individual user of Nokia handset in Bangladesh.

Sampling Frame

There was no sample frame found.

Sampling procedure

Non-probability convenience sampling method was used.

 

Overview of Grameen Distribution Ltd

Grameen Telecom (GTC) is one of the respected and reputed business houses in Bangladesh. It was established in 1995.

Grameen Distribution Ltd Established in 2009 as a Sister concern of Grameen Telecom. Grameen Distribution was successfully set up the strategies to accelerate the Nokia handsets business across the country. Grameen Distribution is a profitable company set up at the initiative of Grameen Telecom. Grameen Telecom hold 95% share and Grameen Kalyan holds the rest 5% of Grameen Distribution Ltd. GDL is entrusted with the Service of Distributing telecommunication accessories.  Grameen distribution has a purpose, to contribute the economic development of Bangladesh where telecommunications can play a critical role. This is why Grameen Distribution is aiming to distribute quality product related Information and Communication technology (ICT).

Company Vision and Mission

Vision: Vision represents a challenging portrait of what the organization and its member can be- a possible, desirable and future. Grameen Distribution ltd. corporate vision is to provide telecommunication services to the rural inhabitants in the 68,000 villages in Bangladesh.

Mission: An organization also typically creates a mission statement, which identifies the business it is in, the market niches it tries to serve, the types of customers it is likely to have and the reasons for its existence.

 

Company Product:

The product of Grameen distribution is Nokia handset. This business gets from its ancestor company Grameen telecom.

Grameen Distribution Ltd. is a major distributor of Nokia handsets in Bangladesh. GDL import the handsets on the basis of market demand with having 30-days buffer stock for uninterrupted distribution through dealers. Now Grameen Distribution Ltd. operates a very good network to maintain NOKIA distribution.

Grameen Distribution Sales Center

GDL has an own sales centre at Grameen Bank Component, Mirpur-2 and selling out the authorized Nokia handsets to the customers as per guideline of Nokia. And another sales center in Mirpur 11 is under construction. Most of the model is available in this sales centre. Sales Officers are putting extra care to deal with sophisticated Customers while selling the products.

Nevertheless, Nokia is providing after sales service with 1(one) year warrantee by the technically sound engineers.

Grameen Distribution and Nokia relationship

Grameen Distribution (GDL) and NOKIA have a very good relationship. NOKIA appointed a country care manager last year in Bangladesh. Before that NOKIA India had provided guideline to Bangladesh which was a very painful situation. Now Grameen Distribution and NOKIA are working very closely that customer get the best care service.

Purchase & Procurement

Procurement, storage, distribution have become increasingly important functions of   Grameen Distribution. A Purchase Manual was formulated for the first time and a top level Purchase Committee, was constituted, and chaired by the Chief of Technical Services (CTS), for major purchase decisions on a competitive and cost effective, basis. The main procurement activity revolved around import GSM handsets & spare parts from Nokia. Grameen Distribution Ltd. is one of the main distributors of Nokia in Bangladesh. In accordance with the indents received from the Sales & Marketing Department, purchase orders are processed, letters of credit obtained from the banks and imports by air were handled expeditiously. From September 09 to January 10, five months review a total of 198580 pcs Nokia handsets were imported by GDL, with an invoice value of US$ 5.38 million.

Grameen Distribution procured stationeries, computers, printers, accessories & equipment regularly for its operations. The main responsibilities of this section were to collect quotations, catalogues and proposals, invitations for tenders, evaluation of tender documents, preparation of contracts & service agreements, issuance of work-orders, bills and vouchers and finally process payment advice against goods and services procured.

 

Human Resources

Grameen Distribution Ltd. places a high value on human resources development and the contributions made by its employees. We persevere to maintain a productive and harmonious working environment. Grameen Distribution Ltd. has successfully hired some key managers who were recruited on the basis of their professional expertise and experience. In order to cope up with dynamic of the company’s business, initiatives were taken to restructure and reorganized the existing set up. At the same time Grameen Distribution Ltd. continued with its effort to improve the efficiency of its employees and align them to the right positions with well-defined responsibilities.

Reward System

Grameen Distribution Ltd. provide the reward among the employee through their    individual performance and as well as based on company performance. It may be financial or may be promotional.

Internal Control

In short, the internal controls systems have been strengthened, well-defined management system have been developed and the total workforce is now geared up towards achieving the business objectives of the company. Therefore we are now more transparent, better organized and managing our internal staff and financial resources with higher efficiency.

 

Distributing Area:

Grameen Distribution Ltd. (GDL) distributes products in different place across the country. The firm has divided their marketing area in four zones, like-Khulna, Jessore, Faridpur and Barisal. Each zone of the firm has Area Sales Manager (ASM) and Territory Sales Officer (TSO) who are doing their job very well. In addition, there is a proper communication channel of every zone with the head office (Grameen Distribution Ltd).

Distribution Process:

To streamline the distribution process, Grameen Distribution has recruited 4 (Four) Area Sale Managers (ASM) & 9 (Fourteen) Territory Sales Officers (TSO) for closely monitoring the retails sales and distribution in different place across the country. ASM are responsible to deal with dealers and TSO is responsible to deal with retailers. Both are also responsible to report CMO regularly to update the sales trend and competitor activities in respective territory and taking corrective action accordingly.  Also set up 37(thirty seven) sales representative and 18(eighteen) MIS teams for reporting & keeping track of sales growth.

Sales Negotiation Process:

Grameen Distribution Ltd. provides a systematic and understanding of the negotiation process with the retailers, customers and every member who are working to this company. Here each of the sales officers and employees are given proper briefing about negotiation. That is how to negotiate effectively and in such a meaningful way so that both of entities come up with their demands. Sales negotiation process is the basic elements of trading business. In this regard a comprehensive training session is being arranged to develop ‘know how’ method as well as successfully close the sales call.

Process Involves:

  1. Planning and Preparation
  2. Opening the call
  3. Product Audit and Merchandising
  4. Presentation
  5. Objection Handling
  6. Closing the Call
  7. Administration

 

Drawbacks of Marketing & Sales:

However, Grameen Distribution Ltd. has strong channel of distribution and skilled sales force but there are some barriers of marketing and sales. Those are as follow.

  • Competitive market situation
  • Not directly doing promotional activities
  • Some time transportation problems in terms of delivering goods
  • Lack of maintaining time schedule properly due to having unavoidable circumstances i.e. traffic system, vehicle fitness, other factors relating to goods available like- port congestion.

 

Marketing Features of Grameen Distribution Ltd.:

The marketing feature of ‘Grameen Distribution Ltd.’ at present competitive situation is very strong. All of the executives and employees have great contribution over this firm.

  • Grameen Distribution Ltd. has very strong experience sales team.
  • Grameen Distribution Ltd. cover different place across the country through around 18 retailers.
  • Grameen Distribution Ltd. has the relative capability to invest more financially and logistically according to requirements.
  • Grameen Distribution Ltd. doing its business with This company is multinational. As a result, it has a good professional background practice.
  • Grameen Distribution Ltd. use different types of software to prepare various reports, like- sales report, store report, delivery report etc.
  • Grameen Distribution Ltd. can conduct different types of promotional scheme round the year.
  • Retailers through out the country have a very good relation with Grameen Distribution Ltd.
  • Grameen Distribution Ltd. has divides the whole country in to four zone.

 

Theoretical aspect

Market:

The set of actual and potential buyers of a product or service is called market.

Marketing:

It is a social and managerial process by which individuals and groups obtain

What they need and want through creating and exchanging products and values with others.

Needs:

Need is states of felt deprivation. Human needs are states of felt deprivation. They include basic physical needs for food, clothing, and satisfy: social needs for belonging and affection: and individual needs for knowledge and experience.

Wants:

Want are the form of human needs take as shaped by cultural and individual personality.

Demand:

Demand is human wants that are backed by buying power.

Market demographic:

Dividing a market into smaller groups of buyer’s distinct needs characteristics or behavior that might require separate products or marketing mix.

Geographic:

Dividing a market into different geographical units such as nations, stats, regions, counties, cities or neighborhoods.

Behavioral factor:

Dividing a market into groups based on consumer knowledge, attitude, use or response to a product.

Market positioning:

Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.

Target market:

The process of evaluating each market segments attractiveness and selecting one or more segments to enter.

Supply chain management:

Managing upstream and downstream value-added flows of materials, final goods and related information among suppliers, the company, resellers and final consumers.

Customer Satisfactions:

The extent to which a product’s perceived performance matches with buyer’s expectations. If the product’s performance falls short of expectations, the buyer is dissatisfied. It the performance matches or exceeds expectations, the buyer is satisfied or delighted (Principles of Marketing 13th edition, Philip Kotlar & Gary Armstrong).

Customer satisfaction is the extent to which a product or service’s perceived performance matches a buyer’s expectations. If the product or service’s performance falls short of expectations, the buyer is dissatisfied. If performance matches or exceeds expectations, the buyer is satisfied or delighted.

Expectations are based on customers past buying experiences, the opinion of friends and associates, and marketer and competitor information and promises. Marketer must be careful to set the right level of expectations. If they set expectations too low, they may satisfy those who buy but fail to attract enough buyers. In contrast, if they raise expectations too high buyers are likely to be disappointed. Dissatisfaction can arise either from a decrease in product and service quality or from an increase in customer expectations. In either case, it presents an opportunity for companies that can deliver superior customer value and satisfaction.

 

Channel Differentiation:

Companies can achieve through the way they design their distribution channels coverage, expertise and performance. Caterpillar’s success in the constructing equipment industry is based partly on superior channel development. Its dealers are found in more locations than competitors’ dealers, and they are typically better trained and perform more reliably.

Channels:

A number of alternate ‘channels’ of distribution may be available:

  • Distributor, who sells to retailers
  • Retailer (also called dealer or reseller), who sells to end customers
  • Advertisement typically used for consumption goods

 

Analysis and Findings

Marketing mix:

An effective marketing program blends all of the marketing mix elements into a coordinated program designed to achieve the company’s marketing objectives by delivering value to consumers. The marketing mix constitutes the company’s tactical tool kit for establishing strong positioning in target markets.

Product: Product means the goods & services combination the company offers to the target market. For Grameen distribution Ltd.  The products are all kind of Nokia handset and batteries for particular Nokia handset.

Price: Price is the amounts of money customers have to pay to obtain the product. The prices of Nokia handset are set by Nokia.

Place: As above, turn the standard logic around. Think convenience of the buying experience and then relate that to a delivery mechanism. Consider all possible definitions of “convenience” as it relates to satisfying the consumer’s wants and needs. Convenience may include aspects of the physical or vertical location, access case, transaction service time and hours of availability. So the distribution channels of the Nokia handsets should be in such place which would be very much convenience to purchase the product for the users.

Promotion: Promotion means activities that communicate the merit of the product & persuade target customers to buy it. Nokia is renowned multinational handset company. Nokia the name itself is a symbol of quality and reliability. Grameen Distribution Ltd (GDL) itself is doing very little promotional activates for the products. Grameen Distribution Ltd.  has a remarkable contribution in the process of promotional activities. The ASM, the TSO ant the Marketing department of Grameen Distribution Ltd. is taking part in this respect. The principle firm (Nokia) of these products is handling this promotional side. The principal firm is using some promotional strategy.

 Promotional Strategy:

  1. Advertising: TV, newspapers, magazines.
  2. Sales promotion: Gift, discount, free.
  3. Public Relation: Press release, product demonstration, and mobile mela.
  4. Internet marketing: website, image, make inquiries, respond to question.

 

Company SWOT analysis:

Grameen Distribution is one of the respected and reputed business houses in Bangladesh. It has just going to crossed years of operation. Grameen Distribution Ltd. has work as sister concern of Grameen telecom and able to transform itself from a small trading company in to a leading diversified business house. Here we tried to find out the Strength, Weakness, Opportunity and Threat for the corporate sales of Nokia handsets.

 

STRENGTH:

A comparison listing of competing company, product, or service strengths for the purpose of identifying a company or offering might have uniquely that can be leveraged of better market opportunity. Here is giving some Strength of Distribution channel of GDL Nokia handsets.

  • Nokia hand set is getting the first position in Bangladesh.
  • Nokia hand set is a qualitative product so that they can satisfy their customer/ client.
  • Grameen Distribution has own two showrooms to meet their customer wants.
  • Nokia hand set provide  warranty (set for one year, Charger or battery for 6 month)
  • Customer can easily use Nokia hand set and option is so much easier.
  • Some of the hand set has internet option browsing, modem and it can use as a computer.
  • Standard price with qualitative product.
  • Highly trained and skilled service personnel of GDL.
  • Highly efficient and higher level customer relation management.
  • Specialist of marketing expertise
  • Modern technology

WEAKNESS:

A comparison listing of competing company, product, or service problems for identifying which weaknesses a company or offering might need to strengthen in order to be successful. Here is giving some weakness of Distribution on Nokia handset.

  • Their price is higher then other branded product.
  • Only two sales store.
  • Sometime show room price and market price is not same. This affect on product image.
  • Grameen Distribution is not providing any types of discount for Nokia hand set supply and sales.
  • Lack of promotional activities.

 OPPORTUNITY:

A comparison listing of a company’s, product, or service’s greatest strengths compared to competitors strengths and weaknesses. Here is giving some Opportunity of Distribution on Nokia handsets.

  • Grameen Distribution has enormous number of potential customer in the competitive market.
  • Grameen Distribution is specifically target the market to reach the product each or every people.
  • Grameen Distribution has good image for their product
  • They have great opportunity to get the potential customer.
  • Distributing high quality goods and services for the customer.
  • Positive word of mouth through long term customer relationship.

THREATS:

A comparison listing of a company’s, products, or services greatest weaknesses compared to competitor’s strengths and weaknesses. Here is giving some Threats of Distribution on Nokia handset.

  • Nokia hand set has different competitor in the present market. Those competitors are threat for this organization.
  • Some Branded product is offered cheapest price so this one is threat for Nokia hand set.
  • Some time price is fluctuate of Nokia hand set. So its affect on customer mind.
  • Few of the Brand product offer discount for potential customer but Grameen Distribution can not provide this type of opportunity so that this one is threat for Nokia hand set.
  • Threat of price sensitive customer.

From the above analysis, we can gain a clear idea about the environmental position of the organization comparing other competitors and understand the current position of ‘Nokia handsets Distribution’ in Grameen Distribution.

 

Key Responsibility to marketing

In this modern and advance civilization, marketers have to change their techniques in order to attract more customers, because due to globalization and technological development, the persisting market condition has been changed a lot. So, only mass marketing and product variation is no longer in the market. To be competitive an organization should segment their market effectively. To segment and target the market, it is essential to study the behavior of the customer. Company not only sales their product and services but also tries to catch the heart and mind of the consumer to stay in the market.

GDL mode of work is Distribute Nokia handsets in different location in our country. Grameen Distribution Ltd. Sales & Marketing department maintain this area. Therefore, we can say that it is a sales organization. As a sales organization, it has some key responsibility are as follows…

  • Measuring customer satisfaction and retention
  • To ensure the better quality and service
  • To stock the products in a safer place
  • Maintain proper distribution
  • Supply the product within the time
  • To ensure the proper transportation
  • Event management
  • Handling customer feedback
  • Arranging promotional campaign

 

Major Findings

From the overall market survey on “Customer satisfaction over GDL distribution channel”, I found there is an opportunity to spread their distribution channel and increase their sales in Dhaka city. In Bangladesh, there are many branding mobile phone. So, competitors are more conscious and the customers are very suspicious about selecting a product. In this situation, if the company wants to increase their sale of Nokia handsets, they need to ensure quality as well as price of the product and……

Some of major findings:

  • From the market survey, I found that there are more and strong competitors of mobile phone. Like Samsung, Motorola etc.
  • There are many brands of mobile phone and they are providing different facilities to the customer and users.
  • I also find that, there is high demand of Nokia mobile phone in Bangladeshi market. But company should ensure its price, quality and warranty.
  • After selling service is an important factor for this business. In perspective of Bangladesh Nokia insures after selling service better than other handset companies.
  • Most of the people like to buy their handset from any reliable shop.
  • Peoples are satisfied about Nokia phone availability in market.
  • Most of the target customers read the daily “Prothom Alo” So Nokia should publish regular AD on the newspaper and popular magazines to communicate with the customers.
  • Nokia very often Advertise on TV for the promotion of their product. That’s the reason most of the target customers can’t recall any AD of pen. But if the industries to air AD in TV then the sell will must increase.
  • Bangladesh is still under developed country. Most of the people think economically. So definitely they must be price sensitive.
  • Nokia got different model of handsets with in different price range that’s why every class of people can buy according to their capability. But few thinks that Nokia take high price over poor feature.
  • Nokia got fewer problems than other handset available in the market.
  • Higher numbers of corporate customers are satisfied with distributors product delivery time.
  • Nokia has well balance over price, performance and quality.
  • Nokia establish its brand as a symbol of quality. Most of the service holder relies on Nokia handset.
  • Most of the retailers believe that the advertisement of Nokia can increase its sell. The retailers are not satisfied with the promotion of GDL.
  • Corporate customers are interested to get corporate offer from Nokia distributor.
  • Grameen Distribution sales Nokia mobile phone for their corporate client in RDS/Dealer price, so corporate client are also benefited for this purpose.
  • Most of the corporate clients prefer good performance of their handsets.
  • According to the RDS opinion, maximum customer buys their handsets on the basis of their income, capability.

 

Recommendation

According to my findings, I have made some suitable recommendation, which is help for Nokia handsets Distribution.

  • Grameen Distribution provides renowned brand Mobile phone with ensuring product quality, price, warranty and availability and they can generate profit from this.
  • Though some customers think that, it takes high price over poor feature. So it should make good combination over price and feature.
  • Grameen Distribution can do differenced marketing and segmented marketing.

The Prothom Alo is more popular newspaper then other newspaper in Bangladesh. So advertisement in The Prothom Alo would give Nokia more coverage.

  • GDL needs to concentrate improving their own organizational culture.
  • Need to advertise and manage strong marketing channel to attract the customers.
  • Grameen Distribution needs better sales team for corporate sales.
  • Grameen Distribution should build better relationship with their clients.
  • If the company can increase their human resources and marketing activities, they will be able to increase the sales volume.
  • GDL should increase their outlet to meet their customer needs.
  • Most of the company or manufacturer can not provide customer service, but it is an important factor for Mobile phone business.

 

Conclusion

GDL is one of the respected and reputed business houses in Bangladesh. This is indeed, a milestone, which GDL has achieved with trust, support, past and present, most importantly its customers.

After finishing the report, I have gained much practical knowledge about a company based on its operation, management process, marketing activities and corporate sales of Nokia handsets. I also learned how GDL gains the competitive advantage and analysis their strengths, weaknesses, opportunities and threats.

Our main objective of this study was to know the process of “distribution channel”. Here marketing programs involves overall strategy making and implementation. GDL has passed Six month very successfully with its different marketing system. From the beginning Distribution of Grameen Telecom was successful and effective in Bangladeshi Market but now this situation some of the branded Telecommunication product enter in the market and getting their competitive position that strongly affect on Nokia hand set. So, As a GDL before corporate sells the product, they try to know the user needs want and satisfaction level. If GDL to give the extra facilities from other company, than it will be sell more from rather than other and easily to get the market.  Though there is some problems but I hope it can overcome all problems and can increase their corporate sales of Nokia handsets.

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