Business Strategy of Aarong

Group-5

Mohammad Riasat Ahmed (53E-20) Mir Md. Tasnim Alam (59E-13)

Golam Towhid (57E-02) Muntaha Nasrin (60D-02)
Md. Rakibul Islam Protik (57E-10) Md. Mahmud Hassan (60D-26)
Naimul Arif (57E-31) Swarnil Roy (60D-40)
Md. Rashedul Islam Rana (57E-49) Ahmed Ali (60D-46)
Mohammad Rashedul Islam (57E-52) Zarrin Tasnim Saeed (61D-45)
 Aarong Strategy Making : Snap Shot

Strategy Making Strategy Execution

Developing a strategic mission, vision Objective Crafting a Strategy Implementation

and core values Setting Vision: • Empowering destitute • Trained artisan • Fair Pay
• Empowering women (From 1978) Establish as world’s one of the rural women by • Created cultural heritage • Women Empowerment
• Mission : To make Aarong the best in the famous fare trade fashion providing opportunities product • Revolutionizing the Retail Sector
world in providing a unique Bangladeshi house. for employment and • 21 retail outlets • Collaboration Ayesha Abid Monitoring
lifestyle experience to empower people income generation. • Supports 65000 Artisan Foundation
and promote Bangladesh while protecting
Remain market leader Developments,
throughout its business. • Ensuring commercial with Fair trade price • Brac Enterprise and 850 small Evaluating
our environment. • Over 100 product lines entrepreneurs
Expand business in international success of the enterprise Performance &
arena. of women producers. Initiating Correct
Adjustments
Develop more artisans of
Bangladesh and make them Covid Strategy
dependent.
Attract more and more
international customers
 V alue C hain of
Raw Materials Supplier Manufacturing Distribution Outlets Consumer

• Spot Payment • Ayesha Abed • 13 Production • 13 outlets (Dhaka, • 488 Products • MARC (My AARANG
• Reaching remote Foundation (35,000 Houses Chittagong, Khulna, • Handmade and Reward Card)
areas artisans and 100% • 623 Sub-Production Sylhet, Narayanganj, unique products • All customers’
• Advance purchase women) houses Cumilla, Uk • One-stop service requests,
orders • Aarang centers (London) • Saving the complaints, queries
• Product design (1769 workers and • E-commerce remnants of our etc. must be sent to
60% women) rich heritage the CRM within 2
• 65,000 individual (Jamdani and days
Artisans, 80% Nakshi-katha) • Customer service
women) status and card
• Benefitting 3,20,000 status updates on
people directly http://crmserver/cr
m
 A dded V alue

Employees
Shareholder Customers and Suppliers Society
USD 172 Mn Best Service Bringing people Directly
revenue in 2018 Premium from rural areas Benefitting 0.32
Products into function Million People
Value pack offer Highest Payment Women
Fair Pay Empowerment
(30% SHOHOZ
discount and
membership
card)
 Business Ecosystem
Suppliers Distrubutors Govt. Agencies

• Raw material suppliers. BRAC’s own distribution channel. • NGO Affairs Bureau
• Rural articians and under privileged Multiple leve distribution: - Montors the activities of
• Distribution of raw materials NGO’s.
producer group. • Distribution of finished goods. • জাতীয় ভোক্তা অধিকার
সংরক্ষণ অধিদপ্তর
- Ensures the proper pricing and
interest of buyers.

Customers Competetors

Mainly well-off people who have • Brands that promotes

some taste for local traditional traditional clothings and
goods consumption and preference handicrafts. (Anjans, Deshi Dosh)
for brands at the same time. • NGO’s who work with similar
goal. (Naksha, Prabarthana, Prokriti)
 Competitor Analysis

Truly unique, the only store that sells completely local clothing, jewelries, accessories,
household items, skin & hair care products, food items etc.

In case of clothing, biggest local competitors are Anjans, Rang, Deshal, Sadakalo, Yellow,
Ecstasy, Kaykraft etc.

Superstores like Shwapno, Unimart etc. superstores and big shopping malls are also
competitors as they have huge collections of dresses, home décors, jewelries, cosmetics etc.

Many F-commerce sellers are now bringing authentic local dresses, jewelries and food items
to their collections.
 Strategic Group Mapping

Aarong Yellow Ecstasy Anjans Kaykraft Rang Sadakalo Deshal

Physical 21 15 18 23 12 23 10 10
Stores
Facebook 2.6M 3.5M 722K 248K 484K 328K 311K 82K
Likes
 4IR & Aarong
Current Technological Footprint of Aarong
 Active e-commerce website which is poorly optimized  Information system of product, customer, supplier,
for search engines employees and artisans
 Online delivery service  Active presence on social media
 Aarong mobile app

Aarong’s adaptation of 4IR technologies

Virtual/Augmented
Artificial Intelligence Internet of Things 3D Printing
Reality
• No use of AI or ML • Scope of incorporating • Automated • Use of 3D printing for
technologies 3D virtual trial/dressing management of Home Décor product
• Scope of incorporating room inventory will be time saving and
recommendation • Augmented reality to • Better tracking and cost effective
system to e-commerce unlock new logistics • Introduction of 3D
site possibilities to • Automated shopping printing technologies
• Customized showcasing product for processes to the artisans can
promotional activities Aarong bring new product
to potential customer • VR/AR will increase innovation
customer interactions
 Triple Triangle Framework

GlobalizationCompetitor
Capacity
& International Trends Customer
TechnologyCapital
Market
& Innovation
Linkage
Production
Number
Access Capacity
& Size of
of Consumers &to
Competitors
Production Skills
Global Trends Access
Sources
to Market
ofInnovation
Fund
& Forward
& Awareness
Integration
Understanding
Global Behavior
Brand’s –Fashion
Fair in
Interest Play?
Trends
Bangladesh Technology
CostDemand
Model Incorporation
for
Pattern
Financing
Marketing
E.g. Jatra,
Potential &forMarket
Rong, Shada-Kalo
GlobalLinkage Skills
Footprints Process
Potential
Trend-Setting
ofofFunding
Global Designs
&
Opportunity
Difficulties
E.g. Increased Demand
E.g. Worldwide in Eid & Pohela
Recognition E.g.
E.g.Traidcraft,
E.g.
Retained
New Designs
Charity
Earningevery
USA,
Circulation
Afro
Eid Art
Boishakh

Collaborator
StateCulture
& Society
Collaboration
Innovationwithin
& Values
Value Chain
Sector Recognition
Value
Mission,
FairChain
Growth
Governance
CompetitionFocus
E.g. Accumulating
Business
Export Ethics,
different
Agility
Promotion materials –
E.g.
brass,
Handcrafted
E.g.dairy, beauty
from
Increased products
different
demand in etc.
parts
of Bangladesh
Western World
 Aarong Strategy

Pre-COVID Post-COVID

Cost Leadership Qualitative Focus Strategy Image Differentiation Channel E-Commerce Opening Selected Introduced an Product
• Constant Cost Differentiation • Specific Group of • Commercial Differentiation Launching Outlets with proper online booking Exchange Policy
Control. • Superior Technology. Customers. Photography • Selected Press media • Providing greater measurements system • Customers are not
• Cost Reduction in • Diversified Distribution • Specific product • Thematic Photography coverage market access • 30 percent of staffs • Customers who allowed to trial or
R&D, Advertising, Network. Line. • Improved Product line. working at a time want to visit a exchange products
Promotion. • Unique Designs. • International Business shopping outlet once bought
• Higher price of through Franchising can book their
products than its time slot.
competitors.
Porter’s Generic Strategy Analysis
Positioning
Selective & Strategic
based on unique
design and feature,
product quality,
service and brand
equity
Products
Target Market
- Wide range
Narrow but slowly
- Diversified
expanding due to the
rising income level - Authentic
Bangladeshi crafts
Competitors, like Home Décor, Vasavi etc. are focused
on specific items, whereas Aarong plays the role of
Focused ”Jack of All Trades”, with a keen focus to be the one
Differentiation stop solution to your thirst for Bengali Cultural
Heritage
Competitive Price
Advantage - Differentiated
- Wider product pricing policy
selection - Often Higher than
- Uniqueness and competitors
innovativeness - Focused on value
- QA & QC proposition
Competitors
- Very few, with even
narrower target
market
- Deshi Dosh, Jatra “Anjan’s”, targets only the upper-middle class customer segment
with an avg. starting price of BDT 4500 for clothing lines, whereas
Aarong’s price varies from BDT 800- BDT 30,000
 Porter’s Five Forces Model

Rivalry Among Threat of New Threat of Substitute

Existing Competitors Entrants Products
(High) (High) (Moderate)

Bargaining Power of Bargaining Power of

Supplier Buyer
(Low) (Moderate)
Global Value Chain
 Branding
Handicraft product Versus Ethical Brand
Household Brand
Best Brand Award (Bangladesh Brand Forum)
Marketing 3 Award and Superbrand Award
The 2017 Facebook campaign and canvas education depicting the crafters and village women behind the craft manship resulted in:
2% increase in online purchases (compared to Eid campaign in 2016)
3X increase in new customers for online store (compared to monthly average)
69% increase in website traffic (compared to before campaign)
Target Market :
common love for traditional Bangladeshi artisanal craftsmanship
Tag Line: “Ethically made handcrafted products”
Logo familiarity

Social Media and Viral Marketing : My AARong Wedding Campaign

Target Marketing: Taaga One it Plus
Celebrity Endorsement: Azra Mahmood
Fashion Shows: 40 years Celebration live crafting showcase
Societal Marketing: canvas depicting lives of artisan
Since, 1984 exporting products to Italy, U.K., Spain, Canada, Japan( more than 15 countries).
Areas to Work on:
Ethical Brand and Foreign Brand recognition
 Strategy Recommendation
• Virtual online store
• Corporate Women Wear Line
• Increase acceptance among youth and kids: Online story campaign( Taaga , Her story) and University competition
• Improve distribution network: Traffic jam
• Cookies E commerce Site
• Virtual Relaity/ 3d home décor
• International Branding: Alliance with Miss World Bangladesh and other Beauty Pageant
• Global Magazine and international fashion shows: Vogue
• Societal Marketing: fashion show with acid victims and autistic person and artisans being the ramp model.
• Artisan Story Video
 Covid Challenges
• Crowded AARong on Eid ( viral on facebook)
Current Strategy
• Ei Somoyer Golpo
• Social Distance
• Online Booking System
• 30 days Return Policy and No trial
• Sanitization
Recommendation
• Bashundhara Example Setter
• E commerce and Delivery system Invest
• Awareness program
• Healthcare Alliance
• Return Policy: Size specify and return through Delivery man
 Aarong Strategy: Recap
Solving social problems through their social driven  Adorned with High number of product lines
business strategy
Making customers database and profile to facilitate
Own set of skilled workers and enterprises future marketing and sales operation

Concentrate on Social enterprises and long-term As an iconic brand follow cultural branding
financial sustainability. strategy

Promotion of Bangladeshi Culture Plan to Become a global brand by expanding its

business to 60 Countries in near future
Rigorously focused on broad differentiation
strategies Strategy to go on virtual business platform

Establish strong partnership with all the Adoption of top-down communication strategy
stakeholders
Maintaining very strong supply chain management
Be the trendsetter of fashion
 Analysis of the strategies
POSITIVE NEGATIVE
Own enterprises and worker networks give extra Strategies seem in effective for long-run to combat
cost Advantages against fashion houses of large local corporates and
Foreign Retail Houses which intend to come in
Bangladesh
Large Line Products make them Ultimate choice

Cultural Branding Strategy is no more a Trump Card

Huge Investments on IT infrastructure has already
started paying off
Lack of strategies Keep pace with changing fashion
trends of young generations
Brac earns a hefty amounts as interest from the
suppliers of Aarong that hit the consolidated profit
A bit High pricing strategy may backfire if rivals offer
better quality and price for their Products.
Having immense popularity for innovation, design
and differentiations.
Thank You