ASSIGNMENT:

PRINCIPLE OF MARKETING :

Group Name: The Herd Nerd

Members:

 Tahsin Muntasir.
 Partha Nath Sarker.
 Safabe Hossain.
 Robi Rakibul Islam.
 Modabbir Hossain.
CONTEXT:
1. Company History.
2. STP Explanation.
3. BCG Matrix.
4. Marketing Mix.
5. Conclusion.

HISTORY:

Sir Fazle Hasan Abed founder of BRAC.

BRAC a non-government organization was set up in 1972 by its founder executive director Fazle Hasan
Abed in habiganj district. Originally its name was Bangladesh Rural Advancement Committee (BRAC).
Since 2009 the abbreviated name BRAC has been officially accepted as its name. BRAC initially
provided relief and rehabilitation assistance to refugees returning from India after the war of liberation.
Later, BRAC turned its focus on the long-term issue of poverty alleviation and empowerment of the poor
in rural areas of the country. At present, BRAC promotes income generation for the poor, mostly landless
rural people through microcredit and programmers on healthcare, literacy, and education and training.
BRAC is now a multi-faceted organization with over 46,914 regular staff and 65,359 teachers working in
69,421 villages in all 64 districts of Bangladesh. The BRAC Development Programmed has so far (2003)
organized over 3.85 million landless poor, mostly women, into 113756 village organization’s (VOs), each
having 35-40 members. VOs serve as forums, where the poor can collectively address the key structural
impediments to their development. These are also key institutions for the delivery of financial services to
the poor. The number of Voss increased to 298,848 in 2009.
The Health, Nutrition and Population Programmed of BRAC takes a broad approach to the health needs
of the poor. Trained health workers raise the awareness of the poor villagers on health issues.
The BRAC Education Programmed has grown to encompass well over 38,250 one-room schools that
provide education to 1.12 million children. About 65% of the students in these schools are girls. BRAC is
also generating 26,350 pre-primary schools throughout the country. BRAC established 20 Residential
Training and Resource Centers and two BRAC Centers for Development Management.
in attempting to link poor rural producers with expanding urban markets, BRAC undertook some
programmer support enterprises, such as Arong, a retail handicraft chain store. In 1998, a BRAC dairy
division was commissioned based on an integrated system of milk procurement from 80 thousand small
rural producers from 28 districts and production of quality dairy products. Nine poultry farms and two
poultry feed mills were set up in rural areas to meet the demand of BRAC members.
BRAC began it activities in the international arena in 2002 with its programmers introduced in
Afghanistan. Since then its multilateral approach for poverty reduction is being practiced in eight
countries of Asia and Africa. At present, BRAC is operating its programmers as an international
development organization in Afghanistan, Pakistan, Sri Lanka, Liberia, Tanzania, Uganda, South Sudan
and Sierra Leone.
At inception in 1972, BRAC had an annual budget of Tk 3 million ($247,000). The donors supplied the
whole of this fund. In contrast, the projected budget for BRAC for the year 2009 was Tk 693.59 million
US dollars and the donor contribution accounted for only 20% of the amount.

STP ANALYZING:
Our groups are going to discuss about aarong and its segmentation process which was established by
BRAC.
BRAC began encouraging silk farming by women in Bangladesh’s Manikganj district. Initially, BRAC
had a few scattered buyers in Dhaka, with weeks or even months passing between supply and payment.
Today, the process is much more streamlined and efficient as BRAC established Aarong. Aarong
established by BRAC in 1978. Aarong means a “Village Fair”. It works towards BRAC‟s goal of poverty
alleviation through economic and human capacity building and empowerment of women.

Arong Segmentation:

STP includes:
 Segmentation.
 Targeting.
 Positioning.

SEGMENTATION:
Geographical segmentation: Aarong focused on urban area that helped its brand image. It also
segmented the rich parts of the world. All of Aarong‟s retail outlets are situated in the important cities of
the country and in the most important point of each city. It helped Aarong to reach for targeted customer
easily.
Demographic segmentation: Aarong also segmented its products into smaller segments for reaching its
targeted customers and providing specific offerings. It divided its targeted customers into smaller
segments according to Age and Gender. Aarong made a large variety of products to satisfy different age
groups and genders under demographic segmentation.
Psychographic segmentation: Aarong mainly focusing on middle class, upper middles, lower uppers and
upper uppers. It also promotes the lifestyle of achievers and focus on ambitious and extrovert personality.
By these psychographic segments it produce exact product that fulfill the need of this type of group.
Behavioral Segmentation: Aarong also made some clear segmentation over Occasions, User Status,
User Rate, Loyalty Status, Readiness Stage and Attitude toward product. Aarong identified regular
occasions, seasonal and special occasions to promote its product. Aarong also divided its users in usage
rate and status. It also divided the readiness of its customer to help them by providing enough
information. Aarong also focused on making the proper attitude toward product of its customer by
dividing them according to their attitude.

TARGETING:

Aarong’s Targeted Customers By the help of segmentation we now have a clear idea about the targeted
customers of Aarong. Aarong‟s targeted customers are targeted according to middle and higher socio
economic classes, all age groups, expatriates, foreign visitors, Bangladeshis living abroad and Export
customers: mainly fair trade organizations (85% fair trade and 15% commercial). Aarong’s Market
Differentiation Aarong differentiate the market offering to create superior customer value. Aarong offers
different and specific offerings for its targeted customers.
For Men : Aarong offers Panjabi, Pajama, Shirt, Fatua, Short Kurta, T-shirt, Lungi, Sleeping Suit, Tupi,
Uttorio, Coaty and shawl for men. These men products are also offered in different sizes- 34, 36, 38, 40,
42, 44, 46, 48 and also made from different materials, as like Silk, Endi, Muslin, Dupion, Jamdani Cotton,
Addi and Joysree. There is also variety in Pajama, as like Aligory, Churidar, Loose and Full Pant Pajama
and in sizes-34, 36, 38, 40, 42, 44, 46, and 48. In shirt, Aarong offers two types of shirt- Casual and
Exclusive and in three variation-Full Sleeves, Half Sleeves and Fitted Short and these are made of Cotton,
Silk and Endi and in five sizes- S, M, L, XL, XXL. As like Pajama and Shirts Aarong offers specific
offerings for each of these men wares- Panjabi, Pajama, Shirt, Fatua, Short Kurta, T-shirt, Lungi,
Sleeping Suit, Tupi, Uttorio, Coaty and shawl.
For Women: Aarong used for women: wares, as like Salwar-Kameez-Dupatta, Taaga, Saree, Unstitched
Fabrics, Long Dress, Ladies Panjabi, Dupatta, Shawl, Scarf, Blouse Piece and Hair Band. Each of these is
made of many different type materials, sizes, types and styles for different test of women.
For Kids: Aarong introduced two types of dresses for Boy and Girl kid. Aarong also created a separate
offering for new born to two years old baby. For Babies Aaron offers Nima, Frock, Shirt, Panjabi, Fatua,
Nappy, Panty, Diaper, Bib, Feeder Cover, Kit Set, Carrier Set and these dresses are sized from 0, 3, 6, 12
months, 1 year, 1 and half year. For Boys: Aarong offers differently for kids (boys) between 2-15 years
old. Aarong offers Panjabi, Pajama, Shirt, Shirt-Pant Set, Fatua, T-shirt, Lungi, Sleeping Suit, Tupi, and
Uttorio. These are offered different sizes, like as 2/3, 4/5, 6/7, 8/9, 10/11, 12/13, 14/15.
For Girls: Aarong offers differently for kids between 2-15 years old and girls. Aarong offers dresses like
Taaga, Saree, Salwar-Kameez-Dupatta, Dupatta, Shirt-tops and pant-tops. These are also offered at 2/3,
4/5, 6/7, 8/9, 10/11, 12/13, 14/15 sizes. For household: Aarong made a different offering for its household
customers. There are four types Bed Covers and those are single, semi double, queen and king size. Each
of these is made of different materials and sizes. Aarong also offer cushion cover, table cloth, curtain,
placemat, dinner napkins for its targeted customer and those are made of different materials and in sizes
that its targeted customers want to buy.
Other Product Offerings: Aarong also offers various rage and types of products, made of different
materials. These products are called non-textile items. There are a huge variety of these non-textile items.
Here some of the main types of non-textile items are mentioned- jewelry items, leather items, metal
products, clay products, ceramic products, jute products, cane, bamboo and wooden products, candles and
dry flower, food products and personal care product.
More over Aarong also gives different options to its customer to choose and enjoy the rich collection of
products from large range of price offerings. These unique advantages help Aarong to lead the market
according to its market plans and strategies.

POSITIONING:

Aarong’s Market Positioning Aarong took its position in the mark et by its capability of large range of
product, size, material, promotion and price offering that created desired position in the minds of target
customers. Competitors Analysis of Aarong Competitor analysis in marketing is an assessment of the
strengths and weakness of current and potential competitors. This analysis provides both an offensive and
defensive strategic context through which to identify opportunities and threats.
It is seen that Aarong has competitive advantage over its competitors on almost every factors. Only few
companies have ability to chase some sort of advantage like Aarong. Such as Kay-Kraft and Anjan‟s
supplier, Rang‟s color and Jatra‟s cost.

BCG Matrix
The BCG matrix is a strategic management tool that was created by the Boston Consulting Group, which
helps in analysing the position of a strategic business unit and the potential it has to offer. The matrix
consists of 4 classifications that are based on two dimensions. These first of these dimensions is the
industry or market growth. The other of these dimensions is the relative market share of the strategic
business unit. Strategic business units are placed in one of these 4 classifications. The BCG matrix for
Aarong Social Enterprise for Bangladesh s Rural Poor will help decide on the strategies that can be
implemented for its strategic business units.
Strategic business units with high market growth rate and high relative market share are called stars.
Businesses should invest in their stars and can implement vertical integration, market penetration, product
development, market development, and horizontal integration strategies. Strategic business units with
high market growth rate and low relative market share are called question marks. These strategic business
units require close considerations whether the business should continue with them or divest. Strategic
business units with low market growth rate but with high relative market share are called cash cows. The
business should invest in these to maintain their relative market share. Lastly, the strategic business units
with low market growth rate and low relative market share are called dogs. The business should divest
these strategic business units.

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BCG Matrix of Aarong Social Enterprise for Bangladesh s Rural Poor
The BCG Matrix for Aarong Social Enterprise for Bangladesh s Rural Poor will help Aarong Social
Enterprise for Bangladesh s Rural Poor in implementing the business level strategies for its business
units. The analysis will first identify where the strategic business units of Aarong Social Enterprise for
Bangladesh s Rural Poor fall within the BCG Matrix for Aarong Social Enterprise for Bangladesh s Rural
Poor.

Stars
The financial services strategic business unit is a star in the BCG matrix of Aarong Social Enterprise for
Bangladesh s Rural Poor. It operates in a market that shows potential in the future. Aarong Social
Enterprise for Bangladesh s Rural Poor earns a significant amount of its income from this SBU. Aarong
Social Enterprise for Bangladesh s Rural Poor should vertically integrate by acquiring other firms in the
supply chain. This will help it in earning more profits as this Strategic business unit has potential.

Cash Cows
The supplier management service strategic business unit is a cash cow in the BCG matrix of Aarong
Social Enterprise for Bangladesh s Rural Poor. This has been in operation for over decades and has
earned Aarong Social Enterprise for Bangladesh s Rural Poor a significant amount in revenue. The
market share for Aarong Social Enterprise for Bangladesh s Rural Poor is high, but the overall market is
declining as companies manage their supplier themselves rather than outsourcing it. The recommended
strategy for Aarong Social Enterprise for Bangladesh s Rural Poor is to stop further investment in this
business and keep operating this strategic business unit as long as its profitable.

Question Marks
The local foods strategic business unit is a question mark in the BCG matrix for Aarong Social Enterprise
for Bangladesh s Rural Poor. The recent trends within the market show that consumers are focusing more
towards local foods. Therefore, this market is showing a high market growth rate. However, Aarong
Social Enterprise for Bangladesh s Rural Poor has a low market share in this segment. The recommended
strategy for Aarong Social Enterprise for Bangladesh s Rural Poor is to invest in research and
development to come up with innovative features. Also The confectionery strategic business unit is a
question mark in the BCG matrix for Aarong Social Enterprise for Bangladesh s Rural Poor. The
confectionery market is an attractive market that is growing over the years. However, Aarong Social
Enterprise for Bangladesh s Rural Poor has a low market share in this attractive market.
The recommended strategy for Aarong Social Enterprise for Bangladesh s Rural Poor is to undergo
market penetration, where it pushes to make its product present on more outlets. This will ensure
increased sales for Aarong Social Enterprise for Bangladesh s Rural Poor and convert this strategic
business unit into a cash cow.
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Dogs
The plastic bags strategic business unit is a dog in the BCG matrix of Aarong Social Enterprise for
Bangladesh s Rural Poor. This strategic business unit has been in the loss for the last 5 years. It also
operates in a market that is declining due to greater environmental concerns. The recommended strategy
for Aarong Social Enterprise for Bangladesh s Rural Poor is to divest this strategic business unit and
minimise its losses.
This will ensure profits for Aarong Social Enterprise for Bangladesh s Rural Poor if the market starts
growing again in the future.
The artificially flavoured products strategic business unit is a dog in the BCG matrix for Aarong Social
Enterprise for Bangladesh s Rural Poor. These products were launched recently, with the prediction that
this segment would grow. However, with increasing health consciousness, people are now refraining from
consumption of artificial flavours. The market is shrinking, and Aarong Social Enterprise for Bangladesh
s Rural Poor has no significant market share. The recommended strategy for Aarong Social Enterprise for
Bangladesh s Rural Poor is to call back this product.

MARKRTING MIX:

Aarong is an enterprise of BRAC and it’s a CSR based handicraft company established in 1978. Today,
Aarong’s reach has spread beyond Manikganj to the rest of the country. At present Aarong is operating
through 9 domestic outlets and one franchised outlet in London. Aarong has more than 488 products in
their outlets. They have grown into a thriving international enterprise showcasing ethnic wear to beautiful
crafts from silks, handloom cotton, endi to terracotta, bamboo, jute and much more. From a single shop,
Aarong has grown into one of Bangladesh’s biggest retail chains, with eight stores spread across the
major metropolitan.
The retail strategies that Aarong follows can be concluded through their marketing strategies which mean
their competitive strategies, they are explained below:
 Product: They offer a wide range of product line at high price. When it comes to product they
maintain a quality. Their products focus on authentic Bangladeshi craft and are produced by rural
women who are actually most special in this field.

 Price: They do pricing of the product according to the promotional activities they do to promote
the product and to recover the fixed cost of the product. Aarong follow differentiate pricing
policy as they charge higher price and better quality which create value to customer.

 Place: They don’t it does not have any product out of its retail outlet. Aarong try to locate their
outlets in huge space. Because they really need certain land and location for their outlets and it is
a particular brand product that’s why it does not have any out let in any shopping centers. Only
Aarong retail outlet has Aarong products. The location is very important for Aarong as they are
always located in cities.

 Promotion: Aarong promote their product pretty strategically. They often promote their product
on some concepts. Basically when they introduce any new product they do promotion for the
product. Sometimes they do promotion to sale only that item. (Example- Sari in the bill board
near Ramna Thana). Aarong is exclusively produce new goods and they do fashion show to aware
the customers about the upcoming trend of Aarong.

CONCLUSION:

Aarong being a lifestyle retail chain of 38 years with its vast network of suppliers and operations has
provided an excellent ground to carry out my internship as I was able to get practical experience in many
different areas and was given responsibilities that helped develop my skills. Aarong‟s activities have been
exciting to observe since they have complicated process that leads to the product designs from the hands
of the designers through the artisans, merchandisers, warehouse and finally to the outlets. My supervisor
and marketing manager contributed significantly to my learning process by patiently educating me and
also believing me with key responsibilities. Moreover, having other employees appreciate my work
further encouraged me to give my best in this field. Hence my career plans are set to remain working in
the field of Marketing, particularly Branding section.
REFFERENCES:
 https://www.case48.com/bcg-case/17661-Aarong-Social-Enterprise-for-Bangladesh-s-Rural-Poor
.Accessed on 8th november,2020 at 10.38 pm
 https://www.greenontheinside.net/marketing-mix-of-aarong-essay-example/
 Accessed on 8th November, 2020 at 10.40 pm.