University of Dhaka

Department of International Business

Faculty of Business Studies

Assignment on

Marketing Strategy of Aarong

Submitted To:
Prof. Dr. Md. Kamal Uddin
Professor
Department of International Business,
University of Dhaka

Submitted By:
Tanvir Abdullah Toha
ID: 801518055
Subject: Principles of Marketing (EIB-507) (Section: B)
18th Batch, MBA (Evening)
Department of International Business,
University of Dhaka
Date of submission: December 1st, 2015

Table of Contents
Executive Summary ....................................................................................3
Aarong ........................................................................................................4
Marketing Strategy of Aarong....................................................................5
Aarongs Market Segmentations ................................................................5
Aarongs Targeted Customers ....................................................................6
Aarongs Market Differentiation ................................................................6
Aarongs Market Positioning .....................................................................8
Value Created By Aarong ..........................................................................9
Conclusion ..................................................................................................9
References ...................................................................................................9

Executive Summary
Marketing is the way to introduce once products to the targeted customer. If we
define marketing than we will find that, Marketing is the process by which companies
creates value for customers and build strong customer relationships in order to capture
value from customers in return. For marketing, marketer should have clear idea and
understanding about the marketplace and customer needs and wants, then they need to
design a customer driven marketing strategy, after that they should build an integrated
marketing program that delivers superior value. If a marketer able to do those
perfectly than it is possible that it will build profitable relationships with customer and
this will lead the marketer to create customer delight and capture value from
customers in return. The process of developing and maintaining a strategic fit between
the organizations goals and capabilities and its changing marketing opportunities is
called Strategic Planning.
To do marketing the company should have a customer-driven marketing strategy
to fulfill its target. In a customer-driven marketing strategy, company should select
customers to serve at the first step. For selecting customer, company need to make
smaller segments to identify suitable customers and then company should target those
customers to serve their products.
After selecting customers, company need to decide on a value proposition by
differentiation and positioning. This will help the company to identify the offerings
that will help to create superior customer value and by creating superior customer
value company can make the ultimate position on the minds of targeted customers.
For any marketer, the key to be a successful marketer is to do these simple four
steps of segmenting, targeting, differentiation and positioning. If he could do these
things successfully these will help to create value for targeted customers and make the
customer-driven marketing strategy successful.
For understanding the marketing strategy, I selected the company who is
promoting the brand AARONG. This is a well-known and a famous brand of
Bangladesh. I will try to provide information about strategies that Aarong uses for
making its products and services to create customer value among general public.

Aarong

Aarong established by BRAC in 1978. Aarong means a Village Fair. It

works towards BRACs goal of poverty alleviation through economic and human
capacity building and empowerment of women. Aarong has a chain of retail outlets to
market Bangladeshi crafts made by artisans and rural women, including those
supported by BRAC poverty alleviation program. The mission of Aarong is, Be the
best socially responsible enterprise empowering people to realize their potential by
creating appeal for a Bangladeshi lifestyle experience.
Today, Aarong's reach has spread beyond Manikganj to the rest of the
60 sub-districts of the country. It has grown into a thriving 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 13 stores spread across the major
metropolitan areas of the country - in Dhaka, Chittagong, Camilla, Khulna and Sylhet.
The company also operates 13 AAF centers while ensuring the livelihood of over
65,000 artisans and their families thus directly benefiting over 320,000 people. In
addition, through the profits redistributed among BRACs programmers, Aarong
benefits hundreds of thousands of people, while providing service to consumers.
Aarong also export its products to Europe, USA, Canada, Japan, Taiwan, India and
Australia. Aarong collect its goods from Ayesha Abed Foundation (AAF) and
independent producers. It has more than 14 retail outlets all over Bangladesh.
Over the years Aarong achieved many things. Some mentionable of Aarong, is
the most established local retail brand in Bangladesh. Aarong is the pioneer in
developing a market for Bangladeshi craft. Aarong is also played its role as
trendsetter in local fashion industry. Aarong contributed in the revival of Nakshi
Katha and Jamdani. Aarong did its expansion of customer base to include more
middle income households. Aarong also helped itself to increase in overall production
capacity, especially in own production units thereby transferring a greater portion of
the work to remote rural areas. Aarong has significant contribution in expanding and
popularizing the cotton handloom industry giving rise to an overall demand in locally
manufactured handloom fabric. Introduction of AZO, PCP free dyes in cotton fabric
production is also a major achievement for Aarong.

Marketing Strategy of Aarong

Aarong is the one of the first brand that identified itself as Made in
Bangladesh. It introduced the branding culture to the Bangladeshi consumers and in
a very successful way. Aarong has been chosen, from the name of Village Fair and
it is successfully represents the feelings of a village fair in its each and every retail
outlets. Aarong covers a very large segments of it market segment. It has proven
records of reaching the targeted customer. Aarong also shown its capability in
differentiation in offering large variety of options to create the superior feeling and
values, in customers mind and after all of this, Aarong secured its position in its
customer heart. Aarong created values for its targeted consumers that made huge
numbers of satisfied, delighted and loyal customer all over Bangladesh.

Aarongs Market Segmentations

Aarong studied its marketplace very well and by the help of proper knowledge it
introduced a variety of segmentation for reaching its targeted customer.
Geographical segmentation: Aarong focused on urban area that helped its brand
image. It also segmented the rich parts of the world. All of Aarongs 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.
5

Aarongs Targeted Customers

By the help of segmentation we now have a clear idea about the targeted
customers of Aarong. Aarongs 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).

Aarongs 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 different offerings. Aaron created a huge variety 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.
6

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 products. Each of these types has specific
target group and different offering for reaching each customer and makes them
delighted about the services provided by Aarong.
Aarong differentiated its market according to its targeted customers and
segments. Aarong offers differently for its each customer according to their needs and
demands. By this Aarong made a strong market position compared to its competitors.
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.

Aarongs Market Positioning

Aarong took its position in the market 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.
Competitor profiling coalesces all of the relevant sources of competitor analysis into
one framework in the support of efficient and effective strategy formulation,
implementation, monitoring and adjustment.
Aarong has its own version of the competitive analysis and its function is clear:
to line up your product with other products and show where yours falls short and
where yours is superior. Each industry brings a different spin to this old favorite and
user experience design has its own set of criteria by which to judge competitors.
Criteria

Products

Quality

Supplier

Technology

Finance

Distribution

Feature

High

A,R,K

Moderate

Low

Product

Costing

Innovation

A,K,A
N
R,K,B
M

AN,BM

A,K,A
N
R,BM

R,K,AN,
BM

R,K,A R,K,AN,B
N,BM, M
J
J

A
R,K,AN,
BM

R,K,A
N,BM

J,A

A=AARONG, K=KAY-KRAFT, AN=ANJANS, BM=BANGLAR MELA, J=JATRA,

R=Rang
Competitors Analysis of Aarong
From the above diagram 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 Anjans supplier, Rangs color
and Jatras cost.

Value Created By Aarong

Aarong created its targeted customer value by following the direction of the great
person, Mahatma Gandhi. Aarong believe that, A customer is the most important
person on Aarongs premises. He is not dependent on us, we are dependent on him.
He is not an interruption in our work; he is the purpose of it. He is not outsider in our
business, he is part of it. We are not doing him a favor by serving him; he is doing us
a favor by giving us an opportunity to do so.
Aarong tries to make good customer value by providing enough information and
quality products and services. It created a good variety of products and a trained work
force to fulfill the task of customer-driven strategy. Aarong offers different types of
new and innovative products and services make its customer delight.

Conclusion
After studying the Strategy of Aarong, we can conclude Aarongs strategy as a
socially responsible customer-driven marketing strategy. Aarong not only creates
value for targeted customers it also creates a bonding between the producers,
marketers and the customer. It makes feelings of thinking Aarongs products as if we
are helping those people in need, who are involved in developing Aarong products.
Aarong also introduced the social responsible branding idea in Bangladesh, which has
a great impact on the mind of customer, and they love to do their shopping from
Aarong not only for shopping but also to help others.
At the end the main idea is to turn the community into a bigger family that not only
involved in buying but also involved in helping each other, and this is what Aarong is
doing in Bangladesh. Aarong is making their marketing strategy for not only making
a good and successful company but also to build a better Bangladesh and form the
beginning they are doing this in the best possible ways.

References
www.aarong.com
https://en.wikipedia.org/wiki/Aarong
http://enterprises.brac.net/aarong
http://blog.brac.net/tag/aarong
https://www.facebook.com/BRAC.AARONG/