Table of Contents

Executive Summary ...................................................................................................................................... 1 1. Introduction ........................................................................................................................................... 2 1.1 Research Design.................................................................................................................................. 2 1.2 Data Collection ................................................................................................................................... 2 1.3 Limitations .......................................................................................................................................... 2 2. Company Overview .............................................................................................................................. 2 2.1 About Shwapno................................................................................................................................... 2 2.1.1 Place ............................................................................................................................................. 3 2.1.2 Price ............................................................................................................................................. 3 2.1.3 Promotion ..................................................................................................................................... 3 2.1.4 People, Process and Physical Evidence ....................................................................................... 3 3. Market Analysis .................................................................................................................................... 3 3.1 4. Target Market................................................................................................................................ 4

Consumer Behavior Analysis................................................................................................................ 4 4.1 Culture and Values .............................................................................................................................. 4 4.2 Group Influence .................................................................................................................................. 4 4.3 Perception ........................................................................................................................................... 5 4.3.1 Perception and Marketing Strategy: ............................................................................................. 5 4.4 Memory ............................................................................................................................................... 6 4.5 Learning .............................................................................................................................................. 7 4.5.1 Brand Positioning......................................................................................................................... 7 4.6 Motivation ........................................................................................................................................... 7 4.6.1 Promotion Vs. Prevention Motives .............................................................................................. 8 4.6.2 Manifest and Latent Motives ....................................................................................................... 8 4.7 Self-Concept and Lifestyle.................................................................................................................. 8 4.8 Situational Influence ........................................................................................................................... 9 4.9 Attitude ............................................................................................................................................... 9 4.10 Evaluation Criteria and Decision Making Process............................................................................ 9

5.

Summary and Recommendations........................................................................................................ 10 5.1 Recommendations ............................................................................................................................. 10

6.

Conclusion .......................................................................................................................................... 10

Bibliography ............................................................................................................................................... 11 Appendix..12

Executive Summary
This report describes the applications of different consumer behavior concepts and marketing strategies in the perspective of Shwapno, which is one of the leading super store chains of Bangladesh. The report has identified the target market, competitors, marketing strategies, and brand positioning of Shwapno very explicitly. It has also analyzed Shwapno from a customers perspective. In doing so, perception, memory, learning, motivation, self-concept and lifestyle, culture and values, group influence and other concepts have been incorporated. Both primary and secondary methods have been used to collect data. Primary method includes a consumer survey of a sample size of 75 people. Secondary data sources include books, journals, articles and websites. Shwapno, which is a subsidiary of ACI, came up with a mission to remove the exploitive intermediaries between the final consumers and farmers. They started in 2008 as chain store providing quality retail experience at a lower price with 59 outlets across 16 districts. However, initially they failed and incurred serious losses due to serious supply chain management issues. They came back with a bang in 2011 with reduced number of outlets (38 from 59). Shwapnos main customers are the lower middle, middle-middle and upper middle income groups which constitutes about 28% of the population. The income of this group ranges from BDT 25000-40000, BDT 41000- 60000 and BDT 61000-100000. The customers are men aged between 30 to 40 years and women between 26 to 50 years of age. Working men and women as well as housewives come to the stores and no specific gender or occupational patterns could be found. Shwapno has created an image (consumers perception) of low price super store especially for meat products through extensive promotional activities. According to the survey,the three attitude components (Cognitive, affective, and behavioral) have been reflected in consumers overall attitude towards Shwapno. Shwapnos meat products are responsible again in creating this positive attitude towards it. Shwapno has used vicarious learning and iconic rote learning to trigger the rational judgment of the customers so that they consume from the store rather than going to bazar. Price is the ultimate motivator that drives consumers to shop at Shwapno. Although promotion and prevention motives fight against each other simultaneously, prevention motive wins in the presence of chronic accessibly (consumers born in middle or lower middle class family) making Shwapno the best choice over regular markets and other super stores. According to the VALS analysis, the lifestyles of Thinkers, Achievers, and Strivers are relevant segments for Shwapno. The report recommends improving supply chain management, endorsing the brand by celebrities, changing the tagline, increasing the assortment of products available and training the existing employees to provide superior customer service.

1. Introduction
This study is an analysis of the applications of consumer behavior concepts and marketing strategies in the perspective of Shwapno, a chain of retail super stores in Bangladesh. It focuses on the different concepts of consumer behavior and relates how Shwapno is addressing these concepts through their marketing strategies.

1.1 Research Design

This study is done with a combination of primary and secondary research. Primary data was collected through observation and questionnaire survey and secondary data were collected from books, journals, articles and websites related to consumer behavior and retail super shops.

1.2 Data Collection

A consumer perception survey was carried out using a questionnaire (appendix 1) designed with Google Docs and the link was shared among prospective respondents via email and Facebook. The hard copy of the same questionnaire was used to reach out to consumers offline to gather comprehensive data on different aspects of retail shopping and customer satisfaction and perception of Shwapno.

1.3 Limitations
The lack of experience was a barrier to reaching out to more respondents and conducting in-depth analysis. Some respondents may have been biased because of limited exposure to Shwapno which may have effected the survey results.

2. Company Overview
Advanced Chemical Industries (ACI) Ltd, former ICI Plc Uk, began its journey in 1992 with the mission of enriching the quality of life through responsible application of knowledge, skills and technology, and has successfully established itself as one of the biggest conglomerates in Bangladesh. ACI began its journey in Bangladesh as ICI (Imperial Chemical Industries) in 1968 by offering a wide range of such products as pharmaceutical, Consumer product, 1968 ICI plc UK started operations in Bangladesh. and so forth. ICI divested to form ACI 1992 ICI Plc divested its shares to local management and (Advanced Chemical Industries) by selling its ACI came into existence share to local management, and named in 1992. 2008 ACI Logistics Ltd. launched SHWAPNO aiming to provide high quality retail experience with a ACI home care products encompass ACI competitive pricing strategy. Aerosol, ACI Mosquito Coil, Angelic Air Freshener, Savlon Liquid Antiseptic, Savlon Antiseptic Cream, Savlon Liquid Soap, which are household names in Bangladesh.

2.1 About Shwapno

Shwapno started with the same philosophy as Walmart, the retail giant of the west. It aimed to provide a wide assortment of good-quality merchandise at the lowest possible prices with a pleasant shopping experience. In Bangladesh, the farmers are paid very poorly for the same harvests that are sold at extremely high prices in the towns and cities. A big margin is taken away by the middlemen and cartels who add little

value. Understanding this value chain gap ACI initiated two new businesses namely ACI Agribusiness and ACI Logistics, which by removing the middlemen ensured reasonable prices for both farmers and consumers. ACI logistics launched Shwapno in 2008 a chain store which offered the retail experience at competitive pricing. By 2009 Shwapno had 59 outlets across 16 districts and a huge supply chain management problem. It incurred severe losses and were forced reduce its outlets to 42 by 2011. Since then Shwapno has redesigned and streamlined its business processes in accordance to market research findings and have emerged as price leader in the retail industry.

2.1.1 Place
Shwapno, at the peak of its expansion in 2009 had 59 outlets across 16 districts of the country (Shwapno, 2009). After heavy setbacks Shwapno reduced its number of outlets and currently has 42 outlets with 38 outlets spread across Dhaka, 3 in Chittagong and 1 in Sylhet.

2.1.2 Price
Shwapno is the current price leader in the retail industry and offers the lowest prices compared to other retailer superstores and in some product categories its competes with the Bazaars by offering lower prices.

2.1.3 Promotion
Shwapno uses banners, leaflets, pamphlets and advertisements in the print media to reach out to its customers. They have new promotional offers every week targeted towards its store driver protein products like beef and fish and slow moving and near expiry items. With its high sales turnover any promotional products are cleared out and new promotions have to be designs.

2.1.4 People, Process and Physical Evidence

ACI Logistics the company which runs Shwapno employs around 800 people around the country who manage the outlets, the inventory, the warehouse and the supply chain and help run this massive operation. The sales staff receive continuous training to improve customer service. It uses sophisticated information systems and ERP software to control inventory and manage the supply chain. The Shwapno outlets have bright signage and simple exteriors and interiors to allow a comfortable shopping experience for its customers.

3. Market Analysis
Other than Shwapno 3 other large chain super shops operate in Bangladesh. They are as follows: Agora Meena Bazar Nondon Started in 2000 and currently has 10 outlets. Market pioneer with largest assortment of SKUS. Started in 2002 and currently has 15 outlets. Rapidly expanding with new showrooms and new products. Started around 2005 and currently has 5 outlets.

If Dhaka is analyzed alone there are several other retailers with multiple outlets but do not carry as many product lines and the one stop shopping service that are provided by Shwapno and the 3 superstores mentioned above. Dhaka and other cities are also dominated by bazaars and neighbourhood shops which give Shwapno indirect competition.

3.1 Target Market

Shwapno is a classic example of mass marketing that failed to attract the masses. Even though as a price leader and the strength of almost 3 times the numbers of outlets compared to its nearest competitors it had its basics right, the problem essentially was the fact that the masses in Bangladesh belong to the lower income groups and would not come to retails super stores. Even though Shwapno still strives to bring the masses in to its stores its main customers essentially are the lower middle, middle-middle and upper middle income groups which constitutes about 28% (Statistics, 2010) of the population. The income of this group ranges from BDT 25000-40000, BDT 41000- 60000 and BDT 61000-100000. The customers are men aged between 30 to 40 years and women between 26 to 50 years of age. Working men and women as well as housewives come to the stores and no specific gender or occupational patterns could be found.

4. Consumer Behavior Analysis

4.1 Culture and Values
Superstores like Shwapno have been a talisman of the socio-economic growth and the change in culture of Bangladesh. The steady economic growth of Bangladesh had led to its citizens leading more hectic lives than the previous generations. Unike the people in the 70s the consumers today are pressed for time and energy. Most of us in this generation do not have the time to go to the far away bazaars, bravinf the traffic and the not so pleasant shopping environment to haggle the price of groceries and household products. Shwapno strives to fill this need and offers great value to its customers in terms of convenient location, clean shopping environment and low pricing and discounts. Shwapno focuses on two types of values: Other oriented values & Environment oriented values. The survey reveals that it is the post liberation generation of our country aged between 25-35 years who go to the superstores such as Shwapno to do their shopping. A certain faction of the middle aged people (36 to 40 years) go to these shops as they seek the status and elder people who have been convinced to come to retails stores are those who seek comfort and because their health does not allow them to go to the Kacha bazaar which would be their first preference. We can also see that majority of the customers of superstores such as Shwapno are from small nuclear families that are living independently and do not have an extended family to rely on to do their daily shopping. Working women and housewives who are pressed for time and seek convenience also frequent these stores. Cleanliness and problem solving nature of the people are also major factors for which consumers are purchasing from superstores such as Shwapno. Recent outbreaks of bird flu and harmful preservatives added to fishes and fruits in the bazaars has caused conscious buyers to shift to the retail shops where product quality is certified by experts.

4.2 Group Influence

Informational influence is a major factor for superstores. Shwapno tries to use this by its extensive promotion through SMS, banners and leaflets so that all prospective customers are informed and when seeking information may volunteer that to others. Even though nuclear families are a common family status Bangladeshis still remain in touch with our extended families. We still take information specially from peers or senior members and share information specially if say one member has found a good value shop he/she is likely to share the information with his closed ones. A consumer would want to purchase

from Shwapno because one of his / her relative has told him / her about the low prices and discounts at Shwapno. Consumption subculture would be a crucial factor here. In different Shwapno stores of Bangladesh we can see different products, such as: in every Shwapno outlet of Chittagong, we would find dry fish (SHUTKI) which would not be available in every Shwapno outlet of Dhaka. The Banani, Gulshan outlets which are targeted towards the more affluent members keeps an assortment of imported foodstuff, chocolates and biscuits which are not seen in its outlets in old Dhaka.

4.3 Perception
Exposure
Prospective customers of Shwapno will be exposed to it through its showrooms, billboards, banners and leaflets. Shwapno uses banners, leaflets and SMS alerts extensively to reach out to its target customers.

Attention
Shwapno uses colorful banners and advertisements in print media focusing on discounts and offers and the lower prices of its various products. This is targeted to gain the attention of its price sensitive target market. Shwapno puts banners up in densely populated residential areas and vantage points like near traffic signals in close vicinity of its stores highlighting prices of key products like fish and beef with their prices to capture the attention of its customers. It uses different stimulus factors both in its promotions such as size (large banners, large print ads), repetition (repeating the same banner close to each other), position (high impact zones like traffic signals, entry point and exit of busy roads), bright colors (red, green, yellow) and information management (just key information product and price are highlighted in their banners to avoid information overload). It also uses stimulus factors in its in store layouts like stand-alone and end cap kiosks for slow moving items or promotional products.

Interpretation
In the case of interpretation, Shwapno will fall in the category of cognitive interpretation. Shwapno is one of the leading brands of superstores in our country. When Shwapno was launched the consumers put it in the superstores category & interpreted it as another high price superstore. This is the reason Shwapno incurred heavy losses initially. They have since then corrected the marketing strategy and puts maximum emphasis on delivering information regarding the lower price & discount it offers its customers. Shwapno has tapped effectively in to the price sensitive nature of Bangladeshi customers with its lower than anywhere else mantra and consumers interpret as such.

4.3.1 Perception and Marketing Strategy:

Retail Strategy
Shwapno has a very strong retail presence. It has thrice as many outlets as Meenabazar which is its strongest competitor in terms of outlets and almost 4 times more than Agora its closest competitor in terms of sales volume. It has a total of 38 outlets spread across the most populous neighborhoods of Dhaka Division, 3 in Chittagong and 1 in Sylhet. The store layouts are strategically designed so that high margin items are places at high traffic areas. Promotions for other slow moving products are placed near store drivers like beef and fish. Introductory products are placed near checkout counters and at entry points generate interest.

Brand Name and Logo Development:

Though ACI has a recognized brand name for its consumer and pharmaceutical products its name has not been tagged with the stores as it is not a very suitable name for a chain store. Almost all other chain super shops has a one word name that is easy to remember and the name themselves suggest that they are a shop (Agora, Meena Bazar) or refers to pleasant experience (Nandan). Shwapno falls in to the latter group as the word literally means dreams in Bengali (linguistic consideration) and is suggestive of the dream of the Bangladeshi Consumer that fair prices can be given with a pleasant shopping experience is realized at Shwapno. The logo shows a man reaching for the stars which further reinforces that at Shwapno dreams do come true.

Store Design:
The Shwapno outlets are designed in a very simple manner. The main aim is to give it a toned down exterior so that consumers are not intimidated to enter the store. The interiors are also simple but appear colorful because of promotional streamers and banners placed strategically to add colour and capture attention. All outlets control aroma by using the same air freshener.

Media Strategy and Advertisement

Shwapno uses banners, leaflets and signage at storefronts to ensure that consumers are exposed to their promotions and offers. SMS alerts are also given to regular customers to ensure that they know of current offers and discounts. With offers that vary every week this are effective ways to make sure they gain the maximum attention with in the shortest possible time.

4.4 Memory
Shwapno Super Store

Products

Price

Place

Promotions

Services

Groceries

Consumer Products

Low Price

Outlets

Banners Leaflets, Advertisemnt, SMS

Support staff

Beef, Fish

Low product variety

Convenient Location

Interiors

Discounts and offers

Provide Product info

Simple, Clean, Organized

Billing and packing

Queues

The consumer survey helped develop the above schematic memory chart and revealed the stated associations with Shwapno. Shwapno uses the following strategies to ensure that Shwapno occupies the memory and learning of its consumers. Low prices and Shwapno has been placed in close proximity for some time now so that consumers can associate the two together which is the process of conditioning. Shwapno offers deep discounts on specific products or bundles different products together at lower price this is shaping, a process of Operant Conditioning which is also observed Shwapnos promotions which

frequently state how some products are available at lower prices and hence customers will be rewarded if they purchase them from Shwapno.

4.5 Learning
Shwapno makes numerous repetitions of the same information for example Beef at BDT 245 or Rui Fish at 160 or simple messages like the best shopping with your hard earned money or cheaper than your local Bazaar this is to trigger iconic rote learning. One popular print ad of Shwapno used the image of a mans head on fire with a caption that Broke after purchasing vegetables from the bazaar and a sub caption of how you get vegetables at a fair price at Shwapno this type of ads aims to trigger vicarious learning or modeling its hopes to trigger the rational judgment of the customers who are encouraged not to make the same mistake and purchase from Shwapno.

4.5.1 Brand Positioning

High Price Agora

The survey helped to draw the perceptual map shown on the right which indicates that Shwapno occupies a position which is not occupied by its direct competitors. However its lack of product variety is a problem that must be solved to reduce customer dissatisfaction and gain loyalty and reputation. The surveyed respondents stated the lack of the product variety and unavailability as the main reason why they do not regularly shop at Shwapno.

Nandan Meena Bazar Low Product Variety and availability High Product Variety and availability

Shwapno

Low Price

4.6 Motivation
Bangladeshi consumers are generally price sensitive in nature especially when it comes to household products and groceries. Housewives haggling with vendors over vegetable prices are a common scene. As Bangladesh is a country afflicted often with natural disasters, political instability coupled with a slow economy the tendency to save for a rainy day is a common trait in most Bangladeshis. The middle class tends to be price sensitive for grocery and household items because any money saved here can be used to purchase clothes or other more durable products. Hence we flock to shops selling at the lowest prices. Shwapno addresses this tendency to save by offering these items at very competitive prices and pointing out how consumers save more if they shop at Shwapno addressing the need for consistency according to Mcguires psychological motives. Shopping at Superstores are becoming as a symbol of social status addressing the esteem needs according to Maslows hierarchy of needs and most women are competitive about these things they want to pay least but get the best and Swapno tries to address this need for assertion.

4.6.1 Promotion Vs. Prevention Motives

The promotion motives in action may be that a newly married couple with good jobs and a promising future may seek progress in social Class and lifestyle and hence buy from any Super Stores. The same couple will also have preventive motives in action which may be triggered by the sense of responsibility for their future and the need to save and hence motivating them to buy from the bazaars or equivalent In presence of Chronic Accessibility Prevention Motives will win resulting to purchasing in Shawpno The best option, since it is providing price close to and in some cases less than bazaar.

4.6.2 Manifest and Latent Motives

The manifest motives in play maybe the Discounted Price, convenient locations, the availability of most goods under one roof and a certain guarantee for product quality. The latent motives in play may be the status symbol, respect from the sales persons which satisfies esteem plus social needs.

4.7 Self-Concept and Lifestyle

There are 8 VALs (Value, Attitude, and Life Styles) segments of which 3 segments- Thinkers, Achievers and strivers are potential customers for Shawpno. As VALS is based on the US market Bangladeshi consumers can only be loosely based on this lifestyle segments Thinkers are School, college, and university teachers, senior government employees, non- government employees and other similar citizens. They are matured, well-educated, well-informed, open-minded and alert to opportunities. (Hawkins & Mothersbaugh, 2011-12) They are consumers who would see the actual benefits gained from shopping in Shawpno. Although, Shawpnos ambiance is not as adorned as other high end super stores (like Agora or Nandan), the thinkers can easily identify that they are clearly getting a lower price compared to other super stores prices in the retail store environment. These things have made thinkers a potential segment for Shawpno. Achievers are the second VALS segment that is applicable for Shawpno. They are the modern professionals of local and multinational companies, banks and financial institutions who live a very frantic and busy city life. Although, image is important to them, convenience and time-saving products are their first priority, which makes them ideal consumers for super stores. Achievers are potential customers for Shawpno, because it covers most of the areas and convenient places of Dhaka. Achievers can find Shawpno very easily, and get their desired product at a lower price. Even though this segment is not very price sensitive but the convenient presence of Shwapno makes it an ideal option for this segment. Strivers are first generation settlers who migrated to Dhaka and other metros seeking better lives and growth. Shwapnos discounts and promotions based on its low pricing are bound to attract this price sensitive customers who seek to emulate the purchasing habits of the achievers. They are not big buyers because of their limited resources but come in to purchase the products at a discount. According to recent studies following Mcguires typology 6 categories of shoppers were identified based on their shopping motives which are fun, value, idea, role and gratifications (Hawkins & Mothersbaugh, 2011-12). The groups most likely to shop at Shwapno are minimalists and providers who give more importance to value and will respond to Shwapnos discounts and low pricing.

4.8 Situational Influence

Consumers purchase behaviors are altered through situational factors. One key factor influencing the consumer is the communication situation. It is regarded as the situation where information received has an impact on consumer behavior. Shwapno tries to communicate to the consumers through the leaflets inserted in to newspapers and reaching consumers at their homes. They also hire people to distribute the leaflets in front of schools and other educational institution to housewife and parents. The leaflets are also available at the entrances of Shwapnos store. Physical surroundings or store atmosphere is another reason why people prefer Shwapno over kacha-bazaar or other super stores. The store aims to influence consumers with their unique combination of competitive pricing, location, dcor, aromas and noncrowding issues so that whenever they want to go shoping they go to their nearest Shwapno outlets. Furthermore Shwapnos product range allows consumer to get all their necessities at one place, thus helping consumer with time constraints. Shwapno also takes ritual influences in to considerations as it gives special offers during Ramadan and pohela boishakh.

4.9 Attitude
The consumer survey revealed that most consumers heard of Shwapno either through the leaflets or through Word of mouth through they heard about the low price of beef or different discounts that were being offered. When they visited Shwapno they found that it met with its expectations of comparatively low prices on items such as beef or discount offers on other items. This results in them making repeat purchase or shopping more when there is a offer going on. Shwapnos intense promotional campaigns and discounts are targeted to change both affective and behavioral attitudes of the consumers

4.10 Evaluation Criteria and Decision Making Process

From prior discussion it is abundantly clear that consumers have a lot of alternatives to choose from, when it comes to shopping. This decision involves evaluation of certain criterions that are the distinguishing factors between super stores. The key criterions for this industry are prices, convenient store location and product variation. Although Shwapno has low product variability when compared to other super stores, the prices they have to offer along with their convenient store location makes it the preferred choice amongst consumers. Even though the prices being offered between the super stores have very little deviation, the location of Shwapnos stores makes it ideal. Shwapnos stores are located in almost every neighborhood. Thus people do not have to travel much when they decide to go for shopping. This helps them to cut down on the time required for travelling and coupled with the low prices they have to offer, they are key criterions when consumers evaluate between the super stores. Shwapnos focus on price leadership and convenience would make it the top choice for shopping according to disjunctive and lexicographic decision rule.

5. Summary and Recommendations

The survey and observation revealed that 82% of the customers said that Shwapno does not keep a wide variety of products. 52% stated that Shwapno needed to improve product qualities in terms of freshness of vegetables and display of near expiry items 36% found product availability to be dissatisfactory. Around 40% found store dcor to be below par. In certain localities Shwapno sales has been suffering due to the presence of strong neighborhood retailers such as DSS in Shewrapara, Khulshi mart in Chittagong

5.1 Recommendations
Improve Supply chain and inventory management processes. They should use brand endorsement by celebrities. Use pictures of celebrities on Shwapnos banners with catchy slogans. Given the diverse localities where Shwapno operated at least 3-4 spokespersons should be used. For example Hasan Masud for old Dhaka outlets, Bipsha Hayat for Gulshan, Banani and Uttara outlets and Momtaz for their outlets in the outskirts of Dhaka. Their tagline Cholun Agiye Jai does not fit properly with either the superstore concept or shwapnos price leadership image. One of the their slogans Koshter uparjone sreshtho bajar or something in the likes of ajker Shasroi bajar agamir shomriddho jibon Analyse consumer needs and design product assortment accordingly. Extensive training and development for the support and front end staff is needed to ensure quality service.

6. Conclusion
This study reveals that for the success of a large retail chain, a proper understanding of the consumer behavior and a strong supply chain and inventory management system to back up the entire process is essential. Shwapno is well on its way to improve on its lacking of the past and use information systems and experienced personnel at its front and back end.

10

Bibliography
Hawkins, D. I., & Mothersbaugh. (2011-12). Consumer Behavior. New York: Mcgraw- Hill. Shwapno. (2009). About Us: Shwapno. Retrieved 05 21, 2012, from Shwapno Website: http://www.shwapno.com/about.php Statistics, B. B. (2010). Household Income and Expenditure Survey . Retrieved 05 22, 2012, from Bangladesh Bureau of Statistics website: http://www.bbs.gov.bd/PageReportLists.aspx?PARENTKEY=66

11