Assignment on Service
Recovery Strategy of
Grameenphone
Submitted to
Shahin Ahmed Chowdhury
Assistant Professor
Department of Marketing
University of Dhaka
Submitted by
Group- “Angry Birds”
Number Name Roll
1Samrina Jafrin 012
2Md. Jahander Ali 038
3Touhiduzzaman Tarun 066
4Kaniz Fatema 078
5Fahand Hossain 108
6Kamrul Islam 126
7Rifat Hasan 128
8Israt Jahan 142
9Fatema Tuz Johoora 154
5Faiza Noshin Rahman 182
Date of Submission- 27/11/2014
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EXECUTIVE SUMMARY
Service recovery is very crucial for the service giving companies. Service recovery is a process
of putting right what went wrong, including service providers of all actions taken in order to do
their best to resolve the problem that happened in the service failure and involved tangible
compensation and interaction between employees and customers, and influence customer
realizations of the service recovery. Service recovery plays an important role in nowadays
relationship marketing. In this report we will understand the importance of service recovery.
Most importantly the service recovery strategies by which Grameenphone is satisfying its
customers and achieving its business objectives will also be discussed. Problem resolution
situations are not only just an opportunity of fixing flawed problems and strength tie with the
customers, but also a valuable source of diagnostic, prescriptive information for improving
customer service. Grameenphone can take some strategies to learn from the service recovery
experience. All the effective strategies will be analyzed in this report. At the end of the report
some recommendation will be given based on the problems and situations of Grameenphone.
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CONTENTS
Executive Summary……………………………………………………………………………………………………………………………………….…… 2
Background of the company……………………………………………………………………………………………………………………….……. 4
Degree of primary service failure…………………………………………………………………………………………………………..…….…. 5
Service Recovery………………………………………………………………………………………………………………………………….….……….… 6
Importance of Service Recovery………………………………………………………………………………………………………………………. 6
Service Recovery strategy……………………………………………………………………………………………………………………………….… 7
Make service fail safe………………………………………………………………………………………………………………………….….……... 8
Details of the Offer…………………………………………………………………………………………………………………………….….…….… 9
Encourage and track complaints…………………………………………………………………………………………………..…….……. 10
Act Quickly…………………………………………………………………………………………………………………………………………………….. 11
Provide adequate explanations…………………………………………………………………………………………………………………. 13
Treat Customers Fairly and Cultivate Long-Term Relationships……………..……….………..……….……..…..…..14
Cultivate relationship with customers……………………………………………………………………………………….…….……... 15
Learn from recovery experience……………………………………………………………………………………………………………….. 20
Learn From Lost Customers………………………………………………………………………………………………………………….…… 21
Recommendations………………………………………………………………………………………………………………………………….…….…. 23
Conclusion…………………………………………………………………………………………………………………………………………………………. 23
References………………………………………………………………………………………………………………………………………………..…….…. 24
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BACKGROUND OF THE COMPANY
The concept of mobile telephony became largely familiar and phenomenal in Bangladesh in the
early 90s. The government of Bangladesh awarded Grameenphone a nationwide digital cellular
license on November 1996. Grameenphone has been established by a consortium involving
Grameen Telecom of Bangladesh, an affiliate of the world famous Grameen Bank. Telenor AS,
the main Norwegian Telecommunication Company Marubeni Corporation, one the largest
trading and investment companies in Japan; and Gonofone Development Corporation, a
telecommunication development company in the United States. Besides these shareholder or
ownership, GP’s other investors are – NORAD, CDC IFC, ADB. Grameenphone launched
services in Bangladesh on 26 March 1997 with 72 employees. It has taken lease of Railway fiber
optics on September ’97 for 20 years. In February 2000 Grameenphone received GSM
Community Award from GSM World Congress, France and in June 2000, Grameenphone started
service in all 6 divisional towns. Grameenphone started to provide services to all people in the
country, irrespective of their location. Grameenphone was offered a cellular license in
Bangladesh by the Ministry of Posts and Telecommunications on November 28, 1996. The
Company launched its service on March 26, 1997, the Independence Day of Bangladesh. In
1996, Bangladesh Government was arranging an auction off private cell phone licenses; then on
behalf of Dr. Muhammad Yunus (Grameen Bank’s founder) a not-for-profit private company
called Grameen Telecom was created. In turn Grameen Telecom created a for–profit company
called Grameenphone, found a foreign partner, and put in a bid; Grameenphone received one of
the four licenses. Grameenphone makes its profits by serving wealthier urban customers. But
from the point of view of the Grameen family and its strong anti-poverty mission, the for-profit,
urban-only Grameenphone exists for only one reason: To fund, with its profits, the extension of
cell phones into rural Bangladesh in order to provide entrepreneurial opportunity to Grameen
Bank members through Village Phone. As Dr. Yunus puts it, “Grameenphone is merely what we
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need to do Grameen Telecom’s Village Phone.”Grameenphone widely abbreviated as GP, is the
leading telecommunications service provider in Bangladesh, with more than 50 million
subscribers. Grameenphone is the largest mobile phone operator in the country. It is a joint
venture enterprise between Telenor and Grameen Telecom Corporation, a non-profit sister
concern of the internationally acclaimed microfinance organization and community development
bank Grameen Bank. Telenor, the largest telecommunications company in Norway, owns 55.8%
shares of Grameenphone, Grameen Telecom owns 34.2% and the remaining 10% is publicly
held. Grameenphone was the first company to introduce GSM technology in Bangladesh. It also
established the first 24-hour Call Center to support its subscribers. With the slogan Go Beyond,
Grameenphone promises its customers to bring the best of communication technologies so that
they can Go Beyond.
DEGREE OF PRIMARY SERVICE FAILURE
Understanding the degree of failure will help service providers to develop efficient and effective
service recovery program to their customers. Degree of service failure is defined the importance
of customer service and measure of service failure severity. There are four crucial factors are
explained the degree of service failure:
Cost
The more costs customers spend on a service, the more expectations for recovery when failure
has been occurred will be. For example, a customer will have a greater expectation for recovery
at an expensive steakhouse of an over-cooked steak than if he received the same service in an
inexpensive fast food restaurant.
Product and brand image
A customer who consumes a product service that has high brand awareness, a reputation of
reliability and high performance will have greater expectations for recovery than he or she would
with a general product brand.
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Criticality
Customer’s expectation regarding service recovery on a more important service will result a
higher expectation. For instance, a customer will have higher expectation for recovery when a
service failure in a wedding banquet reception than a dinner reservation in hotel restaurant.
Inconvenience
The more inconvenient a failure was and the more inconvenient to resolve that failure will
greater customer’s expectations for service recovery.
SERVICE RECOVERY
Service recovery is a process of putting right what went wrong, including service providers of all
actions taken in order to do their best to resolve the problem that happened in the service failure
and involved tangible compensation and interaction between employees and customers, and
influence customer realizations of the service recovery.
