Introduction

Earning is necessary for surviving. Money is important tool but it is not everything. As a human

being, everyone have many responsibilities for society. Because everything is linking with

society. Social entrepreneurship is not just a business, but also dealing problem through

businesses.  It´s not enough to be only Mother Teresa, it is necessary be a strategic person. Many

business firms are focusing on social problem through business and get benefited from each
other. There are many successful examples of social entrepreneurs. Aarong is reputed brand in

our country.

The name of Aarong is a Bangla word which means “a village fair or market”. This fair bring

craftsmen of all trades come together in a marketplace to exhibit and purchase their traditional

handicrafts. . It helps encourage the traditional craftsmanship and find a wider market for their

products nationally and internationally. This naming upholds the organizations commitment to

promote the traditional products of our country. It become part of our rich cultural and artistic

heritage.

The logo of Aarong is a symbol of peacock. It is spectacularly gorgeous because design was

brilliant, iridescent, amazing colorful pattern. The color of the peacock logo is orange which

represents energy. By this logo of Aarong indicate that products are as stunning and unique as a

peacock. It also emphasize its natural, eco-friendly products through the emblem.

Aarong has also successfully found a niche in the retail fashion space. Prior to the establishment

of Aarong's retail outlets, shopping for quality textile products was either through the backstreets

of local markets or in up-market boutiques inside hotels. It is the closest shopping experience to

a department store in Bangladesh, offering a range of products ranging from clothing, shoes,

jewellery and accessories to furniture and homewares. So, although the brand's marketing

includes billboard advertising and fashion shows within the country, it is really the elements of

convenience, range and quality of product, combined with a strong national identity, that have

effectively become its marketing tools.

 History
Bangladesh Rural Advancement Committee (1972), and later as Building Resources Across

Communities (2000), BRAC was initiated by Sir Fazle Hasan as a small-scale relief and

rehabilitation project Abed at Shallah Upazillah in the district of Sunamganj to help returning

war refugees after the Bangladesh Liberation War of 1971.

In 1972after the liberation war, BRAC started its journey with the vision of enlightened, healthy

and democratic societies free from hunger, poverty environmental degradation & forms of

exploitation. Aarong began as a purpose of fighting to uphold the dignity of the organization

margin. In 1976, BRAC dedicated to overcome poverty and empowering the poor, they started

encouraging women for sericulture in Manikganj. They had limited buyers and retailers in

Dhaka. Before intervened of BRAC, sericulture farmers faced delay pass between supply and

payment Weeks, even months. Aarong was ensured that the penniless silk farmers were paid for

their goods upon delivery, so that they could feed their families.

In 1978, Aarong established a fair trade organization dedicated to artisans and underprivileged

rural women which bring positive changes in the lives of disadvantaged by reviving and

promoting their skills and craft.

Aarong timeline

In 1978, Aarong opened its first retail outlet in Dhaka.

In1982, Established the Ayesha Abed Foundation, a Network of Production centre's aim at

supporting rural artisans.

In 1983, opened its first retail outlet in Chittagong. In 1985, opened its first retail outlet in

Sylhet. In 1995, opened its first retail outlet in Khulna.

In 1987, Entered into the export market.

In 1999, Participate in its first International fashion show.

In 2001, Launched a retail first international retail franchise in London.

In 2003, Launched its sub-brand "Taaga" ranged of women's western wear.

In 2007, R Received Fair Trade certification from World Fair Trade Organisation         

In 2008, Celebrated its 30thanniversary with an exhibition series and fashion gala

In2009, Received Best Brand’ award from Superbrands       

In2011, Opened its flagship outlet in Uttara, Dhaka, Bangladesh       

In 2012, Opened a retail outlet in Comilla, Bangladesh, received UNESCO Award of Excellence

In 2013, Launch the Artisan Development Initiative, a BRAC holistic development programme

In 2014, Opened a retail outlet in Jamuna Future Park, Dhaka, Bangladesh, launched e-

commerce website, launched furniture line ‘Rattan’ and product line ‘Maternity Taaga’

In 2015,Opened retails outlets in Dhanmondi and Banani, Dhaka, Bangladesh

“To provide a stable and gainful source of employment for the under privileged rural
artisans, lift up the traditional identity and the commitment of quality service”

On the above basis of principal, Aarong started their journey in Bangladesh. Aarong is dedicated

to change the lives of disadvantages, promoting traditional products from Bangladesh and

opening the doors so their products can be exported. Throughout nationally and in

internationally, the name of Aarong is the synonym of quality uniqueness and originality. The

creators and the designer of the product categorized offered by Aarong. They have not only

based the company as leaders in deshi handicraft, but have also achieved popularity for styles

and traditional crafts that are native to the country. There is gracious blend of up to date and

customary which ensures that every product is original and attractive in modern society. Aarong
has thousands of artisans for producing pottery work, jewelry, woven baskets, silk, leather items,

brass pieces and luxurious wood carvings. Today's Aarong has become an independent

organization groups and family-based artisans market. They also effort to position the nation's

handicraft industry on a world platform of appreciation and acknowledgement. Over the years

pass, Aarong has earned reputation as one of the finest rural craft producers and marketer in

home and abroad.

Relation among BRAC, Ayesha Abed Foundation and Aarong

The Ayesha Abed Foundation
(AAF) was established in 1982 in honour of the
memory of Late Mrs. Ayesha Abed, wife and co-
worker of Sir Fazle Hasan Abed. The foundation has
12 Main Production Centre which are - Manikgonj,
Gorpara, Jessore, Jhenaidah, Pabna, Kushtia,
Nilphamari, Baniachong, Rajbari, Kurigram, Sherpur
and Jamalpur and over 658 sub-centres and it works
as a production hub for Aarong. There are 15-90 Sub-
Centres per Main Production Centre, 10-80 female
artisans per sub-centre and Each Sub-Centre has one
in charge.
 As one of Bangladesh's largest fashion

retail chains under the umbrella of one of the world’s largest NGOs,

Aarong extended its support to rural artisans by investing in their

handicrafts for several years into its operations. In the process, it saw

the emergence of independent producers and created income generating

opportunities for thousands of artisans from communities beyond the

reach of BRAC. It employs more than 65,000 artisans and among them

85% are women (BRAC-Aarong, 2015). Tamara Hasan Abed is the

senior director of BRAC Enterprises and heads BRAC’s 16 social

enterprises including Aarong, BRAC Dairy and BRAC Seed and Agro

Enterprise.

The Ayesha Abed Foundation is in charge of the 12 sub centres where the artisans work different
sections (Hand embroidery, Erri, Weaving, Wash, Tailoring, Value add, Metal, Furniture, Pottery,
etc.). The products made by the artisans are send to Aarong head office for quality check. Then
the Quality Control approved products are send to Aarong outlet. The revenue goes to Aarong
and the monthly wage of artisans, 12% markup with costing in cash for producers, as well as a
fixed health benefit fund is made with this revenue. The surplus goes to BRAC for its
development program such as Apon (child care), Alo (education), Wash (sanitization).
 Diagram of relation among BRAC, AAF and AArong

Aarong's Product

MEN'S
PRODUCTS WOMEN'S PRODUCTS

1. Traditional 1.Traditional

Executive
2. Shirts 2.Western

3. Maanja 3.Nightwear

4. Fotua 4.Shawls/Scarves

5. Short Kurta 5.Shoes

6. T‐shirts 6.Bags

Stoles/Shaw
7. ls 7.Fabrics

8.
Sandals 8.Tops, Pants
CHILDREN'S PRODUCTS Jewelry Products

1. Clothes 1. Gold

2. Toys 2. Silver

3. Books 3. Pearl

4. Shoes 4. Other

LEATHER PRODUCTS NAKSHI KANTHA PRODUCTS

1. Shoes 1. Decorative
2. Bags/Wallets 2. Wall hangings

3. Belts

3. Christmas decorations
4. Boxes
5. Photo Frames

HOME ACCESSORIES

1. Curtain 10. Cutlery

2. Bed cover & cushions 11. Bowls and Platters

3. Rugs 12. Photo Frames

4. Table Lamps 13. Bookends

5. Photo Frames 14. Boxes

6. Coasters 15. Hammocks

7. Napkin Rings 16. Plant Accessories

8. Mats 17. Candles

9. Trays

Food
 1. Milk 3. Butter
2. Juice 4. Honey
Other
Products
1. Herbals 3. Oil
2. Shampoo 4. Toothpaste
Target Audience
The price of Aarong’s products is comparatively high. So all classes of people of our society cannot
effort the products of Aarong. The target customers of Aarong are:

• Higher and middle class people.

• Foreign visitors (Tourists and Business Travelers)

• Bangladeshi people from living abroad.

Company's insights
• Values

• Innovation
There has been an innovator in the creation of opportunities for the poor to lift themselves out of poverty.
They value creativity in programme design and also strive to display global leadership in groundbreaking
development initiatives.

• Integrity
Aarong value transparency and accountability in all professional work. They also have clear
policies and procedures which displaying all level of honesty in their financial dealings. They
hold most essential elements of work ethic.
 • Inclusiveness
Aarong are committed into their engagement, cooperating and identifying the value of all
members of society (religion, gender, nationality, ethnicity, age, physical or mental ability,
socioeconomic status and geography).

• Effectiveness
Aarong value efficiency and excellence in all work. Constantly challenging themselves to
perform better, to meet and fulfill programme targets, and to improve and deepen the impact of
their interventions.

• Objectives
• Providing opportunities of rural women by employment and income source.
• Ensuring commercial success of the enterprise of women producers.
• Improving traditional skills.
• Creating job opportunities
• Generating surplus for BRAC in order to minimize donor dependency
• Ensuring long-term support and contribution toward the sustainability of BRAC’s
development interventions such as microfinance, education and skills
development etc.
• Becoming viable investments in the long run in order to act as ‘hedge’ against
future liquidity.
• Basically Balance Score Card is balancing financial objectives or perspective
with strategic objectives or perspective the company.
Strategic objectives Financial objectives
• New and improved product line • Sustainable growth of profit
• Focusing on international business • Increase 15% of sales
through franchising • 10% off sales
• Increase market share

• Aarong's Vision Statement

"To empower people and communities in situations of poverty, illiteracy, disease
and social injustice. Our interventions aim to achieve large scale, positive changes
through economic and social programs that enable men and women to realize their
potential."
 • Aarong's Mission Statement
“To make Aarong the best in the world in providing a unique Bangladeshi lifestyle
experience to empower people and promote Bangladesh while protecting our
environment.”

Social responsibilities
The main idea of having a social compliance department is to ensure that Customers can shop at
Aarong with a clean conscience. The department is also ensure that the production centers where
manufacturing takes place are operating in standards that are acceptable to society without
exploitation environment and follow terms and conditions, wage levels, worker benefits, health
and safety facilities, working hours and worker development are all standardized and
implemented by our Producers.

Many social responsibilities are done by Aarong.

Empowering Poor Rural Woman

From begining, Aarong focused mainly focused on rural women and creating income-generating
activities which enabled them to take charge of their lives and also make improvements for
themselves, their families and their communities. Today, major of Aarong's workers are women.
In some additional points of BRAC's core programs, it also runs commercially operated and pro-
poor enterprises which strategically linked with development programs. These enterprises form
the crucial value chain linkages to extend productivity of assets and labor to scale back risk for
the poor. BRAC's enterprises range from agriculture and farming, water sanitation, handicrafts
and fashion through Aarong. The enterprises also help to form the organization increasingly self-
sustaining.
 Represent Our Cultural Products
Bangladesh has a rich and diverse culture. Its deeply rooted heritage is thoroughly reflected in its
architecture, dance, literature, music, painting and clothing.
From clay pots to diamond jewellery, and silk and cotton fabrics to brass and leather
merchandise, Aarong’s have vast range of innovative products. They also have ec supply chain
and distribution network, makes Aarong truly a household brand in Bangladesh. Its growing
presence outside of Bangladesh – through fair-trade networks and the online shop– continues to
broaden the market for Bangladeshi crafts globally, creating more opportunities for artisans to
protect their age-old art and livelihoods.

Environmental Concerns
Nowadays people are becoming more concern about the environmental issue that they face
challenges. Everyone realize that our planet Earth is in danger and it is gradually becoming a
vulnerable planet. Sustainable enterprise has a main aim to reduce negative impact on the global
and local environment. Often green business facilitate human rights policy.
However, business people are more interested to step on green, because there has a positive
impact on their corporate image. Moving into an eco-friendly office or producing sustainable
products can brings huge profit for the business, but it decrease their profit for a short period of
time. This can helps to maximizes of improving the companies’ carbon footprint in our society.
The company named Aarong aims to change the fashion taste of the country in sustainable way.
Aarong is working hard to create a benchmark for eco friendly production system in Bangladesh.
Aarong concern environmental factors which can be important due to the increasing scarcity of
raw materials, pollution targets, doing business as an ethically and sustainable manners, carbon
footprint targets set by governments. Those are some of basic issues Aarong facing within this
factor. They ethically fulfill consumer's demand and also producing their good from a
sustainable source (if it's possible).
Apart from carrying out sustainable industrial practice, they strictly follow zero wastage policy
in their corporate office. They utilize their raw materials in best possible ways to limit their
wastages. Zero waste is a goal of Aarong which is ethical, economical and efficient. They are
expecting to be a role model of zero waste that will guide people in changing their lifestyle.
Aarong designs and manages products and process them systematically to avoid waste.

Decision Making
(Expertise)+(Structure)

(Diagram pls.)

Planning in organization
Step1:Product Requirement
Step2:Design
Step3: Production
Step4:Costing and merchandising
Step5:Quality Control
Step6:Storage and Distribution network
Step7:Marketing
Websites, TV add, Social media, Printing, billboard

(Diagram pls.)

Analysis of Overall Aarong

SWOT Analysis
• Strength

• Leading brand reputation

• Variety of products
• Specialist marketing expertise
• Customer loyalty
• High production quality
• Maximum level of sales
• Strong management
• Low product damage rate
• Practice of indigenous customs and values
• Excellent working condition for its employees
• Weakness

• Price is higher
• Limited outlets all over Bangladesh
• Vulnerable to producer
• No direct market experience
• Limited budget for research and development
• Limited financial support
• Sales persons need more training
• Opportunity

• Variety of products in future

• New distribution channels
• Top grabs in international market
• Capture more market share
• New market segmentation
• Seasonal fashion influence
• Cost advantages
• Threat

• Rise of the competition

• Price wars with competitors
• Competitors have some superior products
• Changing technology
• Political instability
 • Economic conditions

Pestel Analysis
• Social

It is also known as socio-cultural factors. The areas involve the shared believes and attitudes of
the population. These factors include – population growth, age distribution, health consciousness,
and career attitudes and so on. These factors are of particular interest as they may effect on how
marketers understand customers and what can drives them. Aarong follows the social factor and
by also attention on that. It can determine their target customer and marketing strategies.
• Economical

Economic factors may have a major impact on how a company do their business and also how
can be profitable. Factors are include – economic growth, interest rates, exchange rates,
inflation, disposable income of consumers and businesses and so on. These factors can be
separate down into macro-economic and micro-economic factors. Macro-economic factors deal
with the management of demand. Governments can use interest rate control, taxation policy
and government expenditure as their main mechanisms. Aarong focus on economic factors
and they survey their customer for tax through Vat with the actual price of the product. Micro-
economic factors are discussing about people spend their incomes. This can be impact on B2C
organizations.
• Environmental

Aarong concern environmental factors which can be important due to the increasing scarcity of
raw materials, pollution targets, doing business as an ethically and sustainable manners, carbon
footprint targets set by governments. Those are some of the issues marketers are facing within
this factor. They ethically fulfill consumer's demand and also producing their good from a
sustainable source (if it's possible).

• Technological

Technology can changes market landscape and it also impacts the way of market production.
Aarong established online buying distributing their product to their target customer. It follows
social media yet as electronic media for communicating with their target market yet as for his or
her promotional activities.
 • Political

These are all about how and to what degree a government intervenes in the economy. This may
include – government policy, political stability or instability in overseas markets, foreign trade
policy, tax policy, labor law, environmental law, trade restrictions and so on.
It is clear that political factors often have an impact on organizations and how they are doing
business. According to political agreement of Bangladesh government. Now Aarong is export
their product internationally (UK and USA). Organizations need to be able to respond to the
current and anticipated future legislation, and adjust their marketing policy accordingly.

• Legal

They follows legal factors like - health and safety, equal opportunities, advertising standards,
consumer rights and laws, product labelling and product safety. It is clear that companies need to
know what is and what is not legal in order to trade successfully. If company scale up their
business globally, this can becomes a very tricky. Because each country has its own set of rules
and regulations.

Porter's five model

• Supplier power
An assessment of how easy it's for suppliers to come back near prices. this may be driven by the:
number of suppliers of each essential input; uniqueness of their product or service; relative size
and strength of the supplier; and value of switching from one supplier to a special. The
bargaining power at Aarong is low because Aarong has determines the price of the merchandise
for the supplier.

• Buyer power

An assessment of how easy it's for buyers to drive prices down. This may be driven by the
amount of buyers within the market, importance of each individual buyer to the organization, and
value to the client of switching from one supplier to a special. If a business has just a few
powerful buyers, they're often able to dictate terms. Handicraft based retail industry like Aarong
includes a robust potential buyers, so as that they will reduce their switching cost still as increase
the buyers value.

• Competitive rivalry

The main driver is that the quantity and capability of competitors within the market. Many
competitors offering their own identifying products and services which may increase their own
market attractiveness. Aarong follow the differentiated market strategy for various segmented
customer. So its status in competitive rivalry is moderate. 

• Threat of substitution

When a new substitute products lunched market area, consumers switching to alternatives. This
reduces both the flexibility of suppliers and also the attractiveness of the market. Aarong may
face modaret threats but due to its differentiated market strategy and quality of product customer
aren't willing to vary to alternatives.

 Threat of new entry

Profitable markets attract new entrants, which erodes profitability. Unless incumbents have

strong and durable barriers to entry, for example, patents, economies of scale, capital

requirements or government policies, then profitability will decline to a competitive rate. As

handicraft based lifestyle retail industry encourages new entry, Aarong creates high entry barrier

through its high level of quality and brand value. so Aarong has a high threats on new entrance.

Current Challenges
• Corona Disease
• Social Stigma of boycotting
• Change of taste
• High Cost of Production
• Market competition
 • Timely Deliver

Recommendations

Conclusion

From the starting, Aarong could be a reasonable trade organization devoted to bring approximately

positive changes within the lives of distraught artisans and underprivileged provincial ladies by reviving

and advancing their aptitudes and create. Coming to out to weavers, potters, brass workers, jewelers,

jute laborers, bushel weavers, wood carvers, calfskin laborers and more, Aarong embraces and supports

a different representation of 65,000 artisans, 85% of whom are women. Today, Aarong has ended up the

establishment upon which free agreeable bunches and family-based artisans showcase their make, in an

exertion to position the nation’s handicraft industry on a world stage of appreciation and affirmation.