Aarong - Brand Management
Aarong - Brand Management
Aarong - Brand Management
UNIVERSITY
Course Code: MKT 465
Course Title: Brand Management
Section: 1
Group Project
Sumitted To:
!dulla" !l #aru$ %!#$&
Lecturer
School of Business
Sumitted B':
Noor Jahan Juee (): 111 *+** *,*
S"amma Tasnim (): 111*-51*,*
Sumai'a Su"aila (): 1*1*6.6*,*
Samun /asir (): 1*0*54**,*
#ari'a 1ossain (): 111 11+1 *,*
Sumission )ate: 21
st
August, 2013
Letter of transmittal
August 21
st
, 2013
To,
Abdullah Al Faruq
Lecturer, School Of Business
North South University
Bashundhara, ha!a"
Su#$ect% &e'uest for acce(tance of )rou( *ro$ect
ear Sir,
+e are truly delighted to co,(lete our -.T/012 grou( (ro$ect" +e have generated
3hat 3e #elieve to #e the ,ost a((ro(riate" +e tried our #est to co,(lete the tas! in
this very short s(an of ti,e and 3ith the 'uality of your e4(ectation" +e 3ish the re(ort
3ould #e ,eeting your e4(ectations and standards"
+e truly a((reciate this tas! as it hel(ed us to learn the (ractical situation fro, the
-ar!eter5s (ers(ective" +e sincerely ho(e that you 3ill a((reciate and acce(t our
re(ort"
+e have en$oyed 3or!ing on this grou( (ro$ect re(ort and have learnt a lot"
Sincerely yours,
/oor 2a"an 2uee
S"amma Tasnim
Sumai'a Su"aila
Samun /asir
#ari'a 1ossain
Executive Summery
This report is prepared on MKT-4! titled Brand Manage"ent on Aarong #t is
prepared solel$ for acade"ic purpose of learning%
&e started 'ith a (rief o)er)ie' of our chosen (rand Aarong in a general
Introduction paragraph%
#n our fiest section 'e ha)e discussed Brand Inventory 3here the ,ain issues dealt
3ith 3ere Brand 6'uity Analysis, escri(tion of the Brand 6le,ents and their role,
-ar!eting -i4, *oints of ifference, *oints of *arity" All relevant as(ects has #een
discussed and it discloses e)er$thing in the case in (rief%
The ne*t part of the case is Brand Exploratory 3here issues li!e Brand 7dentity,
Brand -eaning, Brand &es(onses, Brand &elationshi( has #een dealt 3ith" #n this part
'e ha)e discussed a(out presence and standing the "ar+et and ho' the$ ha)e
(onded 'ith their custo"ers%
Key Findings re)eal the "ost i"portant findings in this case% This part is a
su""ar$ of the pints identified in the prior sections
&e ha)e also discussed the Brand Strategies of Aarong, although (riefl$ (ut 'e
ha)e included "a*i"u" points possi(le considering the restraint on 'ord li"it%
And 'hat initiati)es, the co"pan$ should ta+e for the pro(le"s has (een discussed
in the later part in Recommendation%
Lastl$ 'e ha)e outlined a Conclusion 'here 'e ha)e ended ($ stating our )ie's
on Aarong,s ta+e on the "ar+et as a potent (rand%
TABLE OF CONTENTS
PAGE NO.
Introduction 1
Brand Inventory 1
Brand Exploratory 11
Key Findings 12
Brand trategies 1!
"eco##endation 1$
%onclusion 1$
Aarong
Introduction%
Aarong is one of the ,ost (o(ular #rands 3hen it co,es to high 'uality, uni'ue and
classy designs" 7t is a conte,(orary lifestyle store in Bangladesh, 3hich 3as
conceived and founded #y Shilu A#ed" Aarong is a store fa,ous for selling the
country8s o3n (roducts, 3hich are ,ade in Bangladesh" And every Aarong (roduct
re(resents a #eauty of Bangladesh" 6verything for sale in Aarong is the country8s
o3n (roducts, 3hich are ,ainly (roduced in the village #y the village (eo(le
the,selves" 6sta#lished in 19:;, Aarong is a fair trade organi<ation devoted to #ring
a#out affir,ative changes in the lives of disadvantaged artisans and under(rivileged
rural 3o,en #y reviving and (ro,oting their s!ills and craft" +e 3ill #e discussing in
details the #rand ,anage,ent as(ects underta!en and o#served #y Aarong in our
re(ort"
Brand Inventory
Brand Equity Analysis
Brand Equity:
Brand e'uity is the ,i4ture of #rand a3areness and #rand association" To get the right
#rand e'uity of a #rand analysis of the #oth #rand a3areness and #rand association is
a ,ust" To identify the #rand e'uity of Aarong 3e also analy<ed these t3o ste(s"
1
Brand Awareness:
Brand a3areness is the stage 3here (eo(le !no3 a#out the #rand, recogni<e and recall
fro, any situation" To figure out #rand a3areness of Aarong 3e need to analy<e ho3
,uch consu,er recogni<e and recall the #rand"
Brand Recognition:
The uni'ueness of the (roducts and the 'uality (ut Aarong at the to( of the #rand
recognition" Aarong5s Nakshikatha and Jamdani aree is a (articular favorite for ,ost
consu,ers, as it is a rare dis(lay of intricate art3or!" Such hand3or! hel( Aarong to
recogni<e and (ut the,selves out of the #o4 to identify"
Brand Recall:
Aarong (ositioned itself in a (osition that 3hen consu,ers thin! a#out traditional
handcrafted (roduct or art3or! Aarong is the first #rand that co,es to consu,ers5 ,ind"
So, it is very clear that Aarong5s #rand recall is very strong #ecause of its uni'ueness of
its (roducts, the 'uality and getting involved 3ith the Bangladeshi culture"
Brand Association:
Aarong al3ays try to (ortray and associate the,/selves 3ith the traditional culture"
Their #ill#oards ads sho3 that no ,atter 3hat they never forget the root of our
culture" Aarong al3ays try to associate 3ith the (atriotis,, culture lover, and uni'ue
art3or! and 3ith the trend that goes around"
2
Brand Elements of Aarong and !heir Role
Brand Name:
The na,e Aarong is the strongest #rand ele,ent of the co,(any" The na,e (lays a
#ig role for the success of the #rand" =onsu,ers identify the, and thin! differently
3hen they co,e to !no3 the (articular (roducts are fro, Aarong" 7t gives Aarong a
co,(etitive advantage in the ,ar!et"
Logo:
Aarong5s logo is another ele,ent to identify the, easily" Their logo uses sy,#ol of
handcrafted 3or! and also at the #otto, it says its na,e" Aarong is using the sa,e
logo for a long ti,e, 3hich hel(ed the, to differentiate fro, their co,(etitors"
"niform Resource Allocator #"RL$:
As a reno3ned #rand Aarong also has their U&L" 7t hel(s the consu,ers to !no3 a#out
Aarong and their (roducts also the (laces that they are availa#le"
Aarong5s U&L lin! is%
htt%:&&www'aarong'com&
3
Brand Roles:
Brand alience:
Brand salience is ho3 ,any (eo(le !no3 a#out the #rand #(rand de%th$ and ho3
,any sales #(rand (readth$ it5s generating" Analy<ing Aarong 3e identified that #oth
Aarong5s de(th and #readth are very high" Aarong is !no3n as one of the ,ost fa,ous
#rand in Bangladesh and if 3e consider the sale or ho3 ,any 'uantities it sales Aarong
3ill still #e on to("
Brand )erformance:
Aarong is al3ays very fa,ous for their 'uality of the (roduct and relia#ility" Besides, the
designs that they have for their (roducts also hel( Aarong to have a (ositive #rand
(erfor,ance" Their (ri,ary and su((le,entary feature is to u(hold the traditional
Consumer
Brand
resonance
Consumer
2udgment
Brand
Per3ormances
Consumer
#eelings
Brand (mager'
Brand Salience
4
culture 3ith their uni'ue design" Aarong is al3ays the first choice of the consu,ers for
their service effectiveness and efficiency"
Brand Imagery:
Aarong doesn5t only sale (roducts they u(holding the culture and tradition of
Bangladesh" So, 3hen (eo(le #uy any (roduct fro, Aarong they have the (erce(tion
that they are ta!ing ho,e their tradition 3ith the," This is the i,age that Aarong a#le to
create a,ong their consu,ers"
Brand Judgment:
Brand $udg,ent is the reflector on 3hat #asis a #rand is $udged #y its consu,ers" To
identify that there are four ty(es of #rand $udg,ents that are initiate a,ong consu,ers"
So, for Aarong 3e have also used the sa,e four ty(es to $udge Aarong as a #rand%
- Brand *uality: =onsidering 'uality Aarong5s (roduct 'uality is e4tre,e high"
They ,a!e sure that their consu,ers (aying for the right 'uality (roducts" Their
,aterials, designs are very rich that hel( Aarong to (rovide higher 'uality
(roducts to their consu,ers"
- Brand +redi(ility: Aarong is e4(ert in handcrafted (roduct and for art3or!s" As
they are e4(ert in it so the credi#ility of their handcrafted (roducts are very high"
+hen the credi#ility is high it is very ,uch o#vious that consu,ers5 trust and
li!a#ility 3ill also #e high"
- Brand +onsideration: Aarong is very devoted to the culture and tradition of the
country" They al3ays sell 3hich are related to our culture" So, 3hen consu,ers
consider Aarong they al3ays consider it as a #rand of tradition and culture"
5
- Brand u%eriority: Aarong is su(erior as a #rand #ecause of the un'uiness of
its (roducts" >andcrafted (roducts and art3or!s and dresses 3ith the ,i4ture of
current trend along 3ith the tradition are not usually seen" These are the !ey
ele,ents that ,ade Aarong a su(erior #rand"
Brand ,eelings:
Brand feelings are the e,otional attach,ents of consu,ers 3ith the #rand" ?or Aarong
the tie is ,uch stronger, #ecause Aarong sell (roducts 3hich are related to our culture,
tradition and history" *eo(le often feel e,otional 3hen they thin! a#out their country5s
history so attach,ents 3ith the #rand of the consu,ers are very strong"
Brand Resonance:
Brand resonance occurs 3hen consu,ers are in sync 3ith the #rand" This ha((ens
3hen loyalty is high and the #rand is related intensely 3ith consu,ers5 life" On #asis of
that 3e tried to identify the #rand resonance of Aarong 3ith the follo3ing four
categories%
- Behavioral Loyalty: As a strong #rand in the ,ar!et Aarong has such huge
loyal custo,ers of their (roducts 3ho (urchase re(eatedly of their (roducts and
,a!e the, the first choice of #uying anything"
- Attitudinal Attachment: +hen consu,ers #uy Aarong (roducts they either
sho3 (ositive attitude or negative attitude" *ositive attitude are seen 3hen they
thin! the (roduct they #ought are value of and on the other hand negativity are
seen 3hen e4(ectations are not ,eet accurately"
6
- ense of +ommunity: ?or Aarong such sense of co,,unity is seen in 3o,en"
Aarong is very ,uch (o(ular a,ong the," =ause 3o,en find that Aarong is
giving the value that they are loo!ing for"
- Active Engagement: 7t is #asically relying on (articular #rands5 (roducts heavily"
There are lot of consu,ers 3ho are very ,uch involved 3ith Aarong5s (roducts"
Through that they sho3 active engage,ent 3ith Aarong and also a((reciation"
-arketing -i.:
To gra# ,ore ,ar!ets Aarong need to ,aintain ,ar!eting ,i4 3hich refers to (ut the
right (roduct in the right (lace, at the right (rice, at the right ti,e"
7t is really i,(ortant for Aarong to design a (erfect ,ar!eting ,i4 for their #rand in order
to co,(ete 3ith the other co,(etitors in the ,ar!et"
)roduct:
@7nnovation and creativity are at the heart of its (roduct designA Aarong is not only
li,ited 3ithin the clothing (roducts, they sell everything fro, clay (ots to dia,onds"
They (roduce not only traditional (roducts #ut also non/traditional (roducts" Aarong try
to create trends in every (roduct category" Aarong5s e4clusive ,erchandise offers its
custo,ers 3ide range of (roducts li!e%
-ens Brand% Traditional .urta, 64ecutive Shirts, -aan$a, ?otua, Short .urta, T
Shirt, Sha3lsBStoles, Sandals
+o,en8s Brand% Traditional, +estern Taaga, Night3ear, ?a#rics
Bags
Shoes
Scarves
Te4tiles
?a#rics
+allets
Na!shi .antha
Though Aarong is a fusion fashion #rand, they created a distinct category of clothing for
ur#an youth" They also e,(hasi<e on develo(ing unconventional uses for crafts such
as Na!hshi .antha and aiding in the revival of these crafts" Aarong continues to set
trends 3ith $e3ellery" They are the first #rand 3ho introduced the use of silver $e3ellery"
The use of candles as ho,e decoration 3as also first (o(ulari<ed #y Aarong in
Bangladesh and it no3 leads the ,ar!et in this seg,ent" They have develo(ed a ne3
techni'ue for (roducing a ne3 fa#ric na,ed 6ndi" They use the 3astage cocoons of
-ul#erry sil! to (roduce the fa#ric" Aarong 3or!s 3ith a vast and diverse range of
traditional ,aterials li!e fro, sil! and cotton fa#ric to terracotta, #a,#oo, $ute, #rass
and leather"
)lace:
To sell (roduct, (lace is the ,ost i,(ortant thing" Aarong has their o3n stores at
different locations" Aarong has : outlets in ha!a, 2 in =hittagong, 2 in Sylhet, 1 in
7
8
.hulna and their only outside of the country outlet in London" Aarong has (laced their
outlets according to the de,and of their (roducts" ?or their consu,ers convenient they
set u( these outlets at their consu,ers5 nearest (laces" Statistics say that 3 (eo(le
enter an Aarong outlet every second"
)rice:
Aarong focuses on innovation, 'uality, value/#ased (ricing and su(erior in/store
custo,er service" Aarong al3ays 3ant to ,a!e sure that their consu,ers getting the
right value on that they are (aying" Aarong has (roducts fro, reasona#le to e4(ensive
(roducts" The e4clusive (roducts usually cost a #it high" They also have (roducts 3ith
reasona#le (rice for their ,ass consu,ers"
)romotion:
*ro,otion hel(s a #usiness to go further" ifferent co,(anies choose different
(ro,otional activities" Li!e Aarong they largely focus on #ill#oard ads and (rint ads"
They don5t usually do TC= and &=" They have a lot of #ill#oards at different (ri,e
locations" Along 3ith that their ads are seen in different dailies and ,aga<ines" 7n these
ads they try to (ortray the Bangladeshi culture through their (roducts" The ads convey a
hidden ,essage to encourage #uy traditional (roducts and to ,aintain traditional thing"
So,e of their #ill#oard designs are given #elo3%
9
)oint of /ifference
Aarong has co,(etitive advantage over its co,(etitors on al,ost every factor" Only fe3
co,(anies have a#ility to chase so,e sort of advantage li!e Aarong" Such as &ina
Latif5s (roduct features, 'ualities and innovativeness, .ay/.raft and An$an5s su((lier,
&ang5s color and .hu#soorti5s cost" Aarong5s (roduct designs focus on the various
categories and te4tures of crafts and designs that have #een (assed along fro,
generation to generation a,ong 3eavers and artisans in craft cores around the country"
And these characteristics ,a!e the, different fro, their co,(etitors" Aarong also (lays
the role of guardian and su((orter of traditional Bangladeshi (roducts and designs" Only
Aarong (rovides an e4tensive design li#rary 3here re,nants of our rich craft heritage,
such as Na!shi!antha art and Da,dani (atterns, have #een 3idely researched and
archived for (resent as 3ell as future use"
)oint of )arity
6very organi<ation tries to #ring distinctiveness in their (roduct category 3hich 3ill
,a!e the, different fro, their co,(etitors" But they have so,e co,,on #usiness
(ur(ose li!e earning (rofits, (roviding #est 'uality (roducts or #ring innovativeness in
10
designs for their custo,ers" 7n the sa,e 3ay, Aarong and its co,(etitors have so,e
co,,on si,ilarities"
Brand E.%loratory
Brand Identity
There are no households in Bangladesh that do not !no3 a#out the na,e of Aarong"
Aarong has good re(utation for fine 'uality (roducts" And consu,ers are highly a3are
a#out this as a result they are holding 1;E of total handicraft ,ar!et share in
Bangladesh"
Brand -eaning
The na,e of the organi<ation Aarong is a Bangla 3ord" 7t ,eans @a village fair or
,ar!etA" The village fair (rovides crafts,en of all trades a ,ar!et(lace to dis(lay and
sell their traditional handicrafts" The na,ing of Aarong as such u(holds the
organi<ations co,,it,ent to su((ort the ethnic goods of our country, 3hich are a (art
of our rich cultural and artistic heritage" 7t hel(s vitali<e the traditional crafts,anshi( and
find a 3ider ,ar!et for their (roducts nationally and internationally"
The logo of Aarong is an i,age of (eacoc!" 7t is s(ectacularly #eautiful #ecause of the
#rilliant, iridescent, diversified colorful (attern in its tail" The color of the (eacoc! in the
logo is orange #ecause it re(resents energy" 7t 3ants to e,(hasi<e its natural, eco/
friendly (roducts through the e,#le,"
11
Brand Res%onse
A #rand res(onse conte,(lates on unrevealed consu,er insights of the Aarong na,e"
The long ti,e success of the #rand is a (ositive indicator that consu,ers thin! highly of
the Aarong #rand and consider it a re(uta#le and de(enda#le ,anufacturer of ,any
suita#le and traditional things" Cital 3ords that define the i,age of the #rand as a 3hole
are as follo3s% so(histicated, casual, 3estern, traditional and distinct" +hen one #ears
the Aarong na,e 3hether it is on a (iece of clothing, $e3elry, or household ite, their
self/i,age changes to ,odel that na,e"
*erce(tions of consu,ers a#out the Aarong #rand allo3 it to continue gro3ing at a
successful rate" Because consu,ers have the conceived notion that Aarong (roduces
'uality lasting (roducts in all de(art,ents, they are 3illing to invest their ,oney in the
na,e ti,e and again" This ongoing #ehavioral loyalty and devotion of the consu,ers
allo3 the #rand to stay alive and gro3ing" Foung generation of our country love to go to
Aarong ,ost #ecause of its5 (o(ularity, high 'uality and dura#le (roducts and e,(loyee
#ehaviors"
Brand Relationshi%
Not only the Aarong na,e is credi#le to their consu,ers, they feel confident and
satisfaction in the (roducts and its 'uality" Aarong is highly successful to develo( a
strong #onding 3ith its custo,ers #y (roviding 'uality, stylish and dura#le (roducts to
their custo,ers" 7n fact, clothing that Aarong (roduce ,a!es a ,an, 3o,an or children
feel distinct yet so(histicated, confident and stylish, and often ti,es rich" These are all
3orth feelings that ,any (eo(le craving to feel" =onsu,ers can achieve a ,uch/
desired status of satisfaction and e,otional fulfill,ent #y (urchasing Aarong (roducts"
0ey ,indings
Throughout our thorough (in (ointing out of #rand ,anage,ent as(ects of Aarong 3e
have gathered so,e !ey findings for so,e significant ,a$or factors" Aarong has
12
created such heights and such a (otent Brand 6'uity that 3hen it co,es to handcrafted
(roduct recall Aarong at first (osition""
The *O of Aarong sho3s that they have co,(etitive advantage over its co,(etitors
on al,ost every factor" 7f *O* is considered only fe3 co,(anies have a#ility to ccatch
u( 3ith Aarong, #ut Aarong and its co,(etitors have so,e co,,on si,ilarities" They
all sell their o3n country (roducts though their design is not si,ilar" And they all try to
,aintain the tradition of our country"
Aarong is trusted #rand 3hich (rovides reassurance that they have #ought 'uality
(roducts that their friends 3ill a((reciate as it is fro, Aarong" Only Aarong connects the
,odern lifestyle 3ith consu,ers root, giving the, the confidence to reach out for a
,ore fulfilling life" Cital 3ords that define the i,age of the #rand as a 3hole are as
follo3s% so(histicated, casual, 3estern, traditional and distinct as discussed earlier"
*erce(tions of consu,ers sho3 a conce(t that Aarong (roduces 'uality lasting
(roducts in all de(art,ents, they are 3illing to invest their ,oney in the na,e ti,e and
again" This ongoing #ehavioral loyalty and devotion of the consu,ers allo3 the #rand to
stay alive and gro3ing"
Aarong is highly successful to develo( a strong #onding 3ith its custo,ers #y (roviding
'uality, stylish and dura#le (roducts to their custo,ers"
Branding trategies
?irst and fore,ost #randing strategy that ,a!es Aarong a uni'ue #rand is its innovativeness
and creativity in all its (roducts" One can rest assure that Aarong5s (roducts 3ill never #e
availa#le in any other store or #outi'ues" 6ach and every (roduct they ,a!e is different and
uni'ue fro, others" The decoration in their stores, hel(ful sales (erson, good ,anage,ent,
high 'uality (roducts and uni'ue designs ,a!es Aarong stand out fro, other #rands" Aarong
also e4(orts its (roducts outside Bangladesh 3hich has great de,and there" Aarong5s
(roducts are al3ays s(ecial for its custo,ers #ecause it gives feeling that so,eone in a far
13
a3ay village is s(ending hisBher entire ti,e and effort $ust to ,a!e this (roduct for us" And this
is not ,ade #y so,e high tech ,achinery" Secondly, though the (roducts are ,ade in
conte,(orary designs, still they are fashiona#le ,odern and can #e 3orn every3here and can
#e ,ade as a fashion state,ent in any (art of the 3orld" Lastly, Aarong5s ,ost i,(ortant
#randing strategy is, it is al3ays u( to date" There are al3ays ne3 clothing lines 3ith ne3
fashion state,ents 3hich ,eet to all its custo,ers5 re'uire,ent and e4(ectations"
Recommendations
?irst reco,,endation that 3e 3ould li!e to suggest is e4tending stores glo#ally" +henever 3e
send gifts a#road 3e usually send Aarong5s (roduct as they re(resent our country5s culture
and fashion" And ,any foreign (eo(le also li!e Aarong5s uni'ue designs" Thus, Aarong can
o(en stores a#road"
Secondly, Aarong can start featuring its clothing lines, accessories for different cultural
occasions li!e Bengali Ne3 Fear, (ohela falgun, 7nde(endence ay, victory day and other
religious events" This is #ecause these days, all the cultural events are also cele#rated
grandly" Thirdly, Aarong has so,e co,(etitors in that ,ar!et 3ho are also offering sa,e !ind
of (roducts even 3ith lo3er (rices" Thus, Aarong should also !ee( an eye on its co,(etitors
and one never !no3s 3hat strategies the other ,ight follo3" Aarong can also go for category
e4tensions" They can offer their o3n tailoring and designers for their s(ecial custo,ers can
attract ,ore loyal custo,ers" Lastly, Aarong so,eti,es charge a #it high on certain (roducts
3hich are not reasona#le and can #e found in other (laces 3ith lo3er (rices"
+onclusion'
According to a 3e#site, Aarong &eaches out to 3eavers, (otters, #rass 3or!ers,
$e3elers, $ute 3or!ers, #as!et 3eavers, 3ood carvers, leather 3or!ers and ,ore around
the 3hole country and e,#races and nurtures a diverse re(resentation of 12,000
14
artisans, ;2E of 3ho are 3o,en" According to another article, Aarong has #eco,e the
foundation u(on 3hich inde(endent coo(erative grou(s and fa,ily/#ased artisans
,ar!et their craft, in an effort to #ring the nation5s (restigious handicraft industry on a
international (latfor, of a3areness, a((reciation and ac!no3ledge,ent" Aarong5s
e4clusive ,erchandise offers its custo,ers 3ide range of (roducts 3hich 3e have
loo!ed into in our re(ort" Aarong is trusted #rand 3hich (rovides reassurance that they
have #ought 'uality (roducts that their friends 3ill a((reciate as it is fro, Aarong" But
they don5t feel e4cited a#out the #rand" They ,iss out the e4cite,ent" Aarong
enca(sulate the rural essence of Bangladesh" And the design they use in their (roducts
al3ays e4(resses the essence into geo,etric and technical (attern" And this a((roach
too! Aarong for3ard in a ,ultitude of a((lication" Only Aarong connects the ,odern
lifestyle 3ith consu,ers root, giving the, the confidence to reach out for a ,ore
fulfilling life"
15
Reference&Bi(liogra%hy
htt%:&&www'aarong'com&
trategic Brand -anagement 1 &ichard 6lliott , Larry *ercy
16