Executive Summary

Digital world Bangladesh Ltd is a new entrant to the mobile micro payments market where
anybody can purchase items from watch, sunglass, perfume, deodorant, books, cloth, apparel
etc. and have the cost billed to his/her mobile phone account.

Digital world Bangladesh Ltd is a company planning to launch into the mobile payments (m-
payments) market space using patented SMS technology. This technology can be used by all
telecommunication companies that have the capability of sending and receiving SMS. The
technology works across all mobile phone platforms (GSM, CDMA & Analogue) and both
post and prepaid payment types.

This technology has the potential to add value to both online and offline businesses. The key
value that the Digital world Bangladesh Ltd payment system has is that it enables the
efficient and effective processing of payments. This payment market has been ignored by the
traditional financial institutions, as there has up until now been no way of collecting such
payments in a cost effective manner.

The mobile phone market is continuing to expand globally. There are however a number of
markets that are reaching mobile phone penetration rates of 70% +. High levels of penetration
change the way a telecommunications companies view the market and emphasis moves away
from increasing subscriber acquisition to increasing average revenue per user.

The marketing strategies employed by Digital world Bangladesh Ltd will differ both between
segment and over time. In the early stages emphasis will be on an informational strategy as
opposed to an emotional strategy. As the Digital world Bangladesh Ltd payment system has
significant application to online transactions there is the potential to employ a component of
e-marketing within the overall marketing strategy. It must be noted that the e-marketing does
not stand isolated from the overall strategy; they need to complement each other.

In the initial phases of the marketing strategy, e-marketing will largely be used to determine
marketable segments and also as a tool to be used by Digital world Bangladesh Ltd field
operatives to enlist facilitators into the system. A demonstrable and functional web site will
be the main e-marketing initiative during this phase.

Recommended e-marketing strategies are:

• E-Targeting • SMS Campaigns

• Website Linking • Affiliate Programs
• Email Campaigns • Loyalty Programs

As the Digital world Bangladesh Ltd marketing phase is likely to go over an extended period,
and operates in a dynamic market it is important that regular reviews of the strategy are
conducted to ensure that the above objectives are being met.
1. Situation Analysis: To fully develop an e-marketing strategy for a potential player
in the mobile payments (m-payments) space it is necessary to fully understand the nature of
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the problem that is being addressed and the potential players involved in delivering the
solution to the end consumer. In particular, knowledge of the motivating factors that are
driving the potential stakeholders to consider participation in this market is important.
The Problem
It is important to distil the problem to the fundamental components and then review it from
the different perspectives of the potential stakeholders.
End User-
There are a number of situations where a person cannot use traditional payment (cash or
credit) methods to complete a transaction. These reasons for this include:

 The end user does not have any cash or access to a credit card and the
service/product provider does not issue credit.
 The end user cannot tender the correct payment for use with the service/product
providers systems.
 The service/product provider’s payment receipting system is not functional.
 The end user does not wish to, or cannot pay cash and requires the transaction to
remain anonymous.

The Solution
Digital world Bangladesh Ltd has developed a payment system that utilizes current mobile
phone technology to facilitate the transfer of a payment from a mobile phone user to a
service/product provider using the end users telephone account credit (pre or post paid) as
tender.
Service/Product provider-

 The service/product that is provided is of such a magnitude that traditional

payment and receipting practices are not cost effective.
 The frequency and distribution of the service provision does not allow for the cost
effective transaction by traditional means.
 A proportion of the service/product providers target market does not have access,
or wish to use traditional payment methods.
 The channel that is used to provide the service/product does not allow for efficient
or effective means of payment.

2. E-Marketing Strategic Planning:

Service/Product Providers
There are currently a number of services/products that result in a transaction that is either a
micro or nano payment. These payments are generally too small and costly for merchants to
process with credit cards. Alternatively the product/service could be provided in a remote or
virtual location where there is no human or mechanical interaction to facilitate payment or
receipt. There is a potential (if a cost effective transactional process is established) to
deconstruct a number of purchases that are currently packaged. A contemporary example of

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this is the provision of individual music tracks for sale over the internet as opposed to a full
music album.

There are a number of existing products or services that could be made more profitable
utilizing the Digital world Bangladesh Ltd product. These include services such as vending
machines and parking meters. Eliminating or reducing the frequency of service would
increase profitability to the service provider or allow the provision of lower value products or
services.

Telecommunications Companies
Penetration of mobile phone services within any one market will be a limiting factor for the
adoption of the Digital world Bangladesh Ltd product. As the technology relies on the SMS
service, it will be important to investigate network capabilities in any market to ensure that
both originating and receiving protocols are supported. In addition inter carrier transmission
of the SMS service will be required to deliver the maximum available market. Mobile phone
penetration rates continue to increase throughout the world. According to figures released by
the GSM Association at the end of 2012 there were 956 million GSM subscribers across 194
countries of the world. The growth of GSM continues unabated with more than 160 million
new customers in the last 12 months.

In particular, the adoption of SMS services is increasing at a rate greater than that of mobile
penetration. Telecommunications companies motivations move from subscriber acquisition to
subscriber retention and increased usage as mobile markets mature. The focus on average
revenue per user starts to drive actions by the telecommunications companies. Usage of
mobile phones for services other than voice is likely to attract interest. Utilizing a mobile
phone to pay bills with a service such as Digital world Bangladesh Ltd is likely to increase
average revenue per user and attract new users.

Mobile Phone Handset Makers

Mobile handset makers of have acknowledged the increased popularity of SMS services.
They have been beginning to incorporate into handset design, features that facilitate the
generation of SMS texting. These features include hard and soft keyboards and the
incorporation of predictive text input. As mobile markets continue to increase penetration
rates mobile phone handset makers target markets change from new users to upgraders. The
upgrade market will become of increased importance to handset makers as global penetration
rates reach saturation points. A number of developed countries are already approaching
saturation rates. Interviews with handset makers in Bangladesh in 2013 indicate that the life
of mobile handsets in service has decreased from 36 months to 18 months in the last 5 years.
Retailers
The Digital world Bangladesh Ltd payment system is likely to appeal to a subset of retailers
rather than to retailers in general. A profile of a retailer that might benefit from the provision
of the Digital world Bangladesh Ltd payment system is likely to be:
 Generates low unit sale transactions.
 Appeals to credit controlled customers.

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  Appeals to credit challenged customers.
 Appeals to customers requiring anonymous transactions.

The potential to adopt the Digital world Bangladesh Ltd payment system is asynchronous
across virtual and physical retailers. A virtual retailer has limited options in presenting low
value transactions to a target market. A solution to this for the virtual retailer has been the
subscription business model. A subscription business model is practical for frequent
purchases but is unlikely to appeal to purchases of an occasional nature.

3. Plan Objectives:
The marketing task facing Digital world Bangladesh Ltd is a classic “chicken and egg”
conundrum. What should the company do first? Should it create demand and then use this
demand to develop and expand distribution, or should it get the distribution in place and then
create the demand. This report will adopt the approach of:

Establish a relationship with key facilitators

Establish a relationship with service providers
Invite more facilitators
Invite more service providers
Establish relationships with end users

This process will happen over time, some of the processes will happen in series and some in
parallel. It is therefore likely that dependant on time and point of process that the marketing
objectives will be different. Consequently any of E-Marketing initiatives could be quite
different during the execution of this process. There will be an evolution of E-Marketing
processes during the establishment of Digital world Bangladesh Ltd.

Proposed Marketing Objectives-

Market Development-

1. Identify the possible key facilitators in the market. Establish a relationship with
these facilitators. Convince at least one of these facilitators to participate in a trial
within a 6 month time frame.

2. Identify the key service providers in the market. Establish a relationship with
these service providers and encourage a trial once the Digital world Bangladesh
Ltd systems and processes are in place.

Market Penetration- 1.Establish relationships with at least 80% of the facilitators.

Encourage facilitators to use the Digital world Bangladesh Ltd system of payments. Convince
at least three local facilitators to use the Digital world Bangladesh Ltd system within 6
months of relationship establishment.

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 3. Establish relationships with at least 50% of the service providers. Encourage the
local service providers to use the Digital world Bangladesh Ltd system of
payments. Convince at least three local service providers to use the Digital world
Bangladesh Ltd system within 6 months of relationship establishment.

4. Establish a relationship with the end user. Identify potential heavy user segments
of the Digital world Bangladesh Ltd payment system. Build awareness of the
Digital world Bangladesh Ltd system with these segments to 80% within 12
months. Encourage these segments to use the Digital world Bangladesh Ltd
payment system more often.

4. E-Marketing Strategy:
It is important to note that an e-marketing strategy for Digital world Bangladesh Ltd should
compliment traditional marketing methods. While the product that Digital world Bangladesh
Ltd produces is closely linked to e-commerce there will still be a need for a traditional
marketing campaign. This is particularly so in the initial stages of establishment where the
company needs to educate facilitators about the benefits of the Digital world Bangladesh Ltd
process. As the company progresses from the initial stages of establishment to full market
participation the importance and effectiveness of e-marketing is likely to increase.

Establishment of a Website
The establishment and ongoing development of a Digital world Bangladesh Ltd website is
considered to be mandatory. The look, feel and functionality of such a website will evolve
over time dependant on both the company’s marketing progress and the consumer’s
awareness of the Digital world Bangladesh Ltd payment system. The company will need to
employ a multifaceted approach to drive traffic to the website.

Domain Name Choice

The company will need to put significant thought into what is going to be the “common
name” by which customers refer to the Digital world Bangladesh Ltd payment service. Once
established this needs to be registered in a number of variations.

Website Linking
Website linking is considered to be a powerful marketing tool to generate awareness of the
Digital world Bangladesh Ltd payment system. As part of the agreement that Digital world
Bangladesh Ltd establishes with its partners, serious consideration should be given to
including two way web links between the Digital world Bangladesh Ltd website and its
partner’s websites (facilitators and service providers). In addition links should be considered
on other partner websites such as the telecommunication company’s financial institutions and
mobile handset makers. Educating and making the consumer aware about the Digital world
Bangladesh Ltd payment system will add value to all partner’s consumer offers.

Email Database Compilation

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Incorporated in the website design should be an opt-in email database. The site visitors could
be encouraged to subscribe to a Digital world Bangladesh Ltd e-newsletter that detailed such
things as new places to use the Digital world Bangladesh Ltd payment system, provide some
value add (discount or bonus) at partner websites. These members could then be encouraged
to enlist other members by the promise of some value token. This type of viral campaign has
a number of benefits:

 The campaign travels very quickly and broadly.

 As the message is conveyed from trusted person to trusted person it carries more
weight than a typical B2C message.
 Each recipient qualifies the next link in the chain so the message is likely to hit
more targets that will use the service.
SMS Campaigns
As the Digital world Bangladesh Ltd system relies on the use of SMS on a mobile phone to
operate, there is a readymade segment of end users to market to via SMS. The same
precautions need to be observed with SMS as with email campaigns. There are certain
privacy act provisions that must be complied with as well as care must be exercised in the
selection of a list provider.

Email Campaign
Email campaigns can take a number of forms. Broadly speaking they can either be B2B or
B2C. An example of a B2B campaign could be a public relations release that is emailed to
relevant publications outlining the establishment of Digital world Bangladesh Ltd and
announcing key events in the companies establishment phase. There are also email lists
available that may contain the business targets that Digital world Bangladesh Ltd is seeking.
Likewise there are various B2C email lists available that might contain the end user targets
that Digital world Bangladesh Ltd is seeking. Extreme care must be taken when selecting a
list to ensure that it has been compiled by a reputable source on an optimum in basis only.
Partners using the Digital world Bangladesh Ltd system may already have databases
established that they may make available for Digital world Bangladesh Ltd to use to promote
the service.

5. Implementation Plan:
Market Development-
Internet Merchants
The first objective of the company should be to motivate an internet merchant to conduct a
trial. For the purposes of this report it is assumed that Digital world Bangladesh Ltd has
successfully concluded a deal with at least one telecommunication company and a financial
institution if required to facilitate a real world trial. There are a number of ways to segment
potential Digital world Bangladesh Ltd merchants. A number of these segments may be
easier to convert than others and should be targeted accordingly in the start up phase of the

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company. Merchants could be segmented by channel. (online or offline) They could be
targeted by customer segment. They could be targeted by transactional value.

Online -These merchants are already conducting businesses on line. The Digital world
Bangladesh Ltd payment system is likely to compliment current credit card or subscription
payment systems that they may have in place. The Digital world Bangladesh Ltd system may
open up new markets for these merchants or extend existing markets. It is likely that there
will be few technical barriers that will need to be overcome to elicit a trial of the payment
system. These merchants should be amongst the first targets of the Digital world Bangladesh
Ltd field operatives.

Offline - These merchants do not conduct business on the web. They are likely to be vending
machine operators, kiosk or market operators, local councils, and parking operators.
Deployment of the Digital world Bangladesh Ltd payment system with these partners is
likely to entail significant investment in equipment for use in a multi-site environment. For
this reason this group should be targeted once some success has been achieved with the
online merchants.

Internet Consumers
The internet provides fertile ground to establish a market for the use of the Digital world
Bangladesh Ltd payment system. As Digital world Bangladesh Ltd’s aspirations for growth
are global, this fits well with the internets reach. Prospective Digital world Bangladesh Ltd
users are likely to have one or a combination of the following profiles:

 Be purchasing a product or service utilizing the internet that is of low transactional

value.
 Have limited or no access to credit facilities.
 Wish to purchase products/services anonymously.
6. Budget: This e-marketing plan is prepared to obtain financing in the amount of BDT
1,20,000/-. The supplemental financing is required to begin work on site preparation and
modifications, equipment purchases, and to cover expenses in the first year of operations.
This amount is planned to be repaid by BDT 30,000/- each year by four years.
Owners’ investments have already been secured as follows:

1. BDT 50,000/- of personal savings from founder owner.

2. BDT 30,000/- from the second shareholder.
3. BDT 25,000/- in the form of short-term bank loans.
BDT
Start-up Expenses to Fund 1,60,000/-
Start-up Assets to Fund 65,000/-
Total Funding Required 2,25,000/-

Assets

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 Inventory 5,000/-
Cash Balance 60,000/-
Total Assets 65,000/-

Liabilities
Short Term Bank Loans 25,000/-
Funds Needed to Raise 1,20,000/-
Total Liabilities 1,45,000/-

Capital
Founder owner 50,000/-
Second shareholder 30,000/-
Total Planned Investment 80,000/-

7. Evaluation Plan:
Digital world Bangladesh Ltd is involved in a technologically complex business with a
number of significant stakeholders with different motivating factors. The initial marketing
objective of the company is to make its potential partners aware of the payment system that it
offers and the benefits that might accrue to them if they offer the system to their customers.
In addition the end users of the system must be educated in the existence of the system, what
it can be used to purchase, and how to operate the system.. In the initial stages of the strategy
the e-strategy is largely focused on the facilitation of demonstrations of the payment process
by the Digital world Bangladesh Ltd field operatives to prospective facilitator and service
provider partners. The e-marketing strategy recommendations for Digital world Bangladesh
Ltd focus on targeted communications in tandem with a service provider or facilitator. As the
product that Digital world Bangladesh Ltd produces can be largely transparent to the end user
the coupling of the communication is seen as important. The final stage of the strategy will be
to encourage users to increase usage and to employ strategies that lock them into the Digital
world Bangladesh Ltd payment systems. Consequently online mass media advertising has not
been recommended. Likewise the listing of the Digital world Bangladesh Ltd website on
search engines and directories is not considered to be critical to the success of the company.
This is not to say that these objectives should not be pursued.

The Digital world Bangladesh Ltd payment process can open up new markets to online
service providers by lowering the transaction value at which it is profitable conduct
commerce over the web. It is likely that this segment of the market will be early adopters of
the Digital world Bangladesh Ltd payment system. They should form the first segment of end
users targeted. Emphasis will then move to offline customer segments and to expanding the
online customer base.

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