Report on daraz_by_apple mahmud _20202107-converted
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LETTER OF TRANSMITTAL
28, November 2020
Md. Rubel
Lecturer
Department of Management Studies
Jahangirnagar University.
Dear Sir,
It is a great pleasure to present you my report on “Management: DARAZ BD” . I have gained huge
experience while working on this report. I thoroughly enjoyed working on it. I have learnt so many
things while work on this report.
I hope this report contains all the information that you which would describe the proposed topic of
my report. If you have any suggestion or further queries regarding this report please contact me. I
would welcome the opportunity’s to consult with you to explain how the findings could best meet
your needs.
Sincerely,
Apple Mahmud Shuvo
ID No: 20202107
Batch: 27th
Batch
Major: Marketing
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ACKNOWLEDGEMENT
I would first like to thank my course teacher, Md. Rubel, Lecturer, Department of
Management Studies, Jahangirnagar University for assigning this topic. I am very grateful to
my report instructors MD. Harich Mahmud (Manager, Acquisition), Mrs. Sintheya Sharmin,
(Key Accounts Officer) DARAZ BD (Mirpur Hub) They supported me at every stages of
making my report with knowledge and resources.
With all of their effort and support they didn’t let me feel the excessive pressure of doing the
research and writing this huge report. Because of their sincere inspection I able to complete
my report.
I desire and hope that this report paper will certainly help me to be successful and will
influence to build up my career in a right way.
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EXECUTIVE SUMMARY
This report is prepared on overall activities of DARAZ Bangladesh. I have prepared this report
during my 3 Week long attachment at DARAZ (Mirpur Hub) .The operation of Management starts
with National Demand Planning for products and then Supply Planning is prepared basis on that
agreed Demand. The first part of the report gave a short introduction on DARZ Bangladesh Ltd .
The second part is about Management Of this company. The third part is Analysis the DARAZ. The
fourth & Last part is about the Core Competence of Daraz. My overall learning on Management
prepared from my brief knowledge on from DARAZ BD.
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INTRODUCTION
E-commerce platform business which is a term for business transaction that is performed via
internet. Using e-commerce consumers can exchange goods or services electronically without any
Troble. Now a days, numerous number of companies are selling their tangible and intangible
goods through e-commerce.E-commerce refers to any commercial transaction that happens
through electronic media.
Online Shopping BD has never been easier. Daraz.com.bd is best online shopping store in
Bangladesh that features 3+ million products at affordable prices. As bangladesh’s online
shopping landscape is expanding every year, online shopping in Dhaka, Chittagong, Khulna,
Sylhet and other big cities are also gaining momentum. Daraz is among best websites for online
shopping in bangladesh that promises fast, reliable and convenient delivery of products to your
doorstep. Daraz is being the trusted online shop in Bangladesh aims to provide a trouble-free
shopping experience for the people of bangladesh but is also providing ample opportunity for
international online shopping from Bangladesh, Daraz aims to make online shopping accessible
to all parts of the country.
There are 6 types of e-commerce:
Business to business (B2B)
Business to consumer (B2C)
Consumer to Consumer (C2C)
Consumer to Business (C2B)
Business to Administration (B2A)
Consumer to Administration (C2A)
In Bangladesh, e-commerce business started when first payment processor vendor SSL
COMMERZ started their business in 2010. In addition, with the advancement of WIMAX
technology during that time internet speed got better and many of the online business platforms
started.
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Currently e-commerce is one of the most important aspects of doing business. As a result of the
expansion of internet services, e-commerce has grown rapidly. The new shape of business structure
has been introduced by e-commerce. This paper has analyzed growth and challenges of ecommerce
in Bangladesh.
Over 90 million users browse the internet through a mobile phone. The government committed
that broadband network will be extended along with high bandwidth 2021. The political
government of Bangladesh declared Information Technology as a thirst sector, so to exploit ICT
potentials in economic development government launching different promotional activities.
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Major E-Commerce Sites
Key E-commerce platforms in Bangladesh: Major e-commerce websites operating in Bangladesh
are listed below:
• www.ajkerdeal.com
• www.daraz.com
• www.pickaboo.com
• www.chaldal.com
• www.priyoshop.com
• www.bagdoom.com
• www.rokomari.com
Key logistic and distribution operators in the e-commerce market:
• Bangladesh Post office (BPO)
• Various Courier Services
• TNT
Key product categories in the E-commerce market: The products and services that now
dominate the country’s e-commerce are
• Consumer products
• Tickets (railway, domestic air).
• Hotel booking.
• Electronic products.
• Books, jobs, clothing, food items.
• Baby consumables and financial services.
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History of DARAZ
DARAZ was founded as a fashion retailer in Pakistan in 2012, but changed to a general market
place strategy and business model in 2015 when it also launched operations in Bangladesh and
Myanmar Launched in 2012, DARAZ is South Asia's premier online shopping market place with
an active presence in Pakistan, Bangladesh, Sri Lanka, Myanmar and Nepal. Supported by a
wide range of tailored marketing, data, and service solutions, DARAZ has 30,000 sellers and 500
brands and serves 5 million consumers across the region. DARAZ has more than 2.5 million
products to offer, growing at a very fast pace.
Fig 1: Logo of DARAZ
Vision
For DARAZ Bangladesh the vision is- “To be the number one marketplace by offering top quality
services to all of our sellers and customers”.
Mission
The mission of DARAZ is to spread all over Bangladesh and gain highest market share in the
ecommerce sector, make all the necessities available to customers and find the best sellers
around the country to showcase their products in the DARAZ website.
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Objective
There are some objectives which need to be followed in order to achieve the mission and vision.
DARAZ Bangladesh also focuses on many goals to achieve its full potential and these objectives
are:
• Ensure a great experience for the buyers while flourishing our business by working closely with
the sellers
• DARAZ will focus on gaining the market by creating loyal customers by providing the biggest
selection of different items in lowest price
• By fulfilling the orders effectively and efficiently, customer experience will be improved
• Different support services will be designed to help the sellers grow with DARAZ
• Effective recruitment, training, retention and coaching will be done to achieve the mission of
DARAZ and create valuable resources for the company
• Building an effective culture for the company where the employees get the opportunity to grow
and contribute to the company
• Along with the company, helping the growth to the e-commerce industry of Bangladesh by
setting the trend for the market
DARAZ offers a diverse assortment in categories. DARAZ is focused on providing an excellent
customer experience, ease-of-purchase, comprehensive customer care and a hassle-free shopping
and returns experience. DARAZ was acquired by Alibaba Group in May 2018.
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DARAZ has an official FB page with more than 4 million followers (DARAZ Online Shopping,
2020) People who using Facebook, can see the new offers in it. It is just like a digital marketing
policy to get more customers. There is an interesting thing that DARAZ is one of the online
marketplaces which keeps their eyes on the SEO. So, when a customer searches on Google like
“the biggest or best e-commerce sites in Bangladesh”, the name of DARAZ comes first.
Like other countries, DARAZ provides a shopping experience that is incomparable in Bangladesh.
DARAZ attempts to offer the most modish, adapted and protected online shopping experience with
a wide scope of brands such as Yellow, Noir, Symphony, The Body Shop, Huawei, Samsung,
Walton, Aranya, 6 Degree Mobile, Shada Kalo, Apple, LG, Fastrack, MAC, Nikon, Ecstasy,
Panasonic, Doors etc. are just a few of the global and local leading brands who have already set
up e-stores with DARAZ.com.bd with excellent sales reviews. (DARAZ Bangladesh Limited
Website, 2020).
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MD & CEO
Marketing Dept.
HR & Admine Commercial Accounts CS Dept. Operation
A/I Unit.
Acquisition.
Vendor Mgt.
Logistic
Delivery
Management On Daraz
Online Shopping BD is not has never easier. Daraz.com.bd is best online shopping store in
Bangladesh that features 3+ million products at affordable prices. As Bangladesh online shopping
landscape is expanding every year, online shopping in Dhaka, Chittagong, Khulna, Sylhet & other
big cities are also gaining momentum, Daraz is among best website for online shopping in
Bangladesh. Daraz aims to make online shopping accessible to all parts of the country.
Hr & Admin
Human Resources (HR) Administrative Assistants support management-level staff and perform a
variety of tasks. The primary duty of an HR Administrative Assistant is to collect and manage all
data pertaining to a business' employees, but they are also involved in the recruiting, hiring, and
training of new employees.
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Commercial
Generally, the department takes charge of financial and administrative functions of the company.
These include billing, revenue collection, procurement, Acquisition, Vendor Management
expenditure management and control.
Accounts
Accounts a Part of a company's administration that is responsible for preparing the financial
statements, maintaining the general ledger, paying bills, billing customers, payroll, cost accounting,
financial analysis, and more.
Customer Service Dept.
Online Customer Service is defined as any service that helps customers to solve problems. Such
a service is usually connected to a business or brand which sells products and offers support. There
are different types of online customer service.
Daraz Focus on CS very strongly.
Marketing Department
A marketing department promotes your business and drives sales of its products or services. It
provides the necessary research to identify your target customers and other audiences. For a E-
commerce business Marketing is highly important & Daraz is fully concern about their Digital,
Online & Off-line Marketing.
Operation Dept.
An operations department ensures that the production & Delivery process is completed from start to
finish. Daraz have a Big operation Team & 15+ Delivery & Pick up hub In all over Dhaka. .
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EXTERNAL ANALYSIS
An External analysis is a framework or tool used by marketers to analyses and monitor the macro
environmental (external marketing environment) factors that have an impact on an organization.
MACRO ENVIRONMENTAL ANALYSIS
There are a lot of macro environmental factors which influences the ecommerce business of
Bangladesh. Here we tried to focus on those major factors which are affecting DARAZ:
Political Factors
These are about how and to what degree a legislature mediates in the economy. This can
incorporate – government strategy, political security or instability in abroad markets, foreign trade
policy, charge arrangement, labor law, environmental law, trade restrictions and so on. It is clear
from the rundown over that political variables frequently affect associations and how they work
together. Associations should have the capacity to react to the present and expected future
enactment, and modify their promoting arrangement as needs be. DARAZ is an internet based
company and they depend on people ordering through internet. But due to the recent terrorist attack
recently. Government is planning to put some restriction over internet, which in terms might
hamper DARAZ Bangladesh.
Economic Factors
Economic factors have a noteworthy impact on how an organization does business and also how
profitable they are. Factors include – economic growth, interest rates, exchange rates, inflation,
disposable income of customers and businesses and so on. These factors can be further broken
down into macro-economic and micro-economic factors.
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Macro-economic factors deal with the management of demand in any given economy.
Governments use interest rate control, taxation policy and government expenditure as their main
mechanisms they use for this. Micro-economic factors are all about the way people spend their
incomes. This has a large impact on B2C organizations in particular. Bangladesh is a developing
country, here the per capita earning is low. So DARAZ’s pricing should be done accordingly.
Social Factors
Social Factors are the areas that involve the common belief and attitudes of the population. These
factors include – population growth, age distribution, career attitudes, social belief and so on.
These factors are of particular interest as they have a direct effect on how marketers understand
customers and what drives them.
People in our country has this belief that online business isn’t trustworthy. If this belief can be
changed, then DARAZ would capture more market share from new customers.
Technological Factors
We all know how fast the technological landscape changes and how this impacts the way we
market our products. This is the age of smartphone, and most of DARAZ’s target market uses one.
So DARAZ is focusing on mobile advertising to capture the market
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Environmental Factors
Environmental factors include ecological and environmental aspects such as weather, climate, and
climate change, which may especially affect industries such as tourism, farming, and insurance.
But since DARAZ an internet base company, so environment doesn’t affect it much.
Legal Factors
Legal factors include discrimination law, consumer law, antitrust law, employment law, and health
and safety law. These factors can affect how a company operates, its costs, and the demand for its
products. Since Bangladesh is a developing country, government are very lenient towards these
online businesses. It’s not being affected by the law in any bad way
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INTERNAL ENVIRONMENT ANALYSIS
There are a lot of internal factors affecting ecommerce businesses in Bangladesh. Here we tried
to focus on some of the major factors which has direct effect on DARAZ:
SWOT ANALYSIS
The business environment can be analyzed with different tools. One of them is SWOT analysis. It
works with four different types of environment. They are the Strength, Weakness, Opportunity and
Threats of an organization.
Strengths
• Better website among competitors: DARAZ Bangladesh has better website among competitors
like pickaboo.com, clickbd.com and bagdoom.com
• All brand new products: Selling all brand new products here. DARAZ Bangladesh do not sell any
second hand or refurbished goods.
Fig 2: Swot Analysis
• Deals with renowned brands: DARAZ Bangladesh is very popular for coming up with deals from
various renowned brands like Samsung, Bata, Apex.
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• Brand warranty: A lot of brands offer authorized warranty to customer who buys from DARAZ
Bangladesh.
• Fast delivery: Delivery among customer all over the country within three days.
• Strong collaboration among departments: DARAZ Bangladesh has a very strong collaboration
among departments. Like delivery to content department they communicate fast and solve
problems.
• Easy and free register: It is free and easy for seller to register with DARAZ Bangladesh.
• Delivery in whole Bangladesh: DARAZ Bangladesh delivery their product all over Bangladesh
no matter in cities or villages.
Weakness
• High turnover rate: The turnover rate in DARAZ Bangladesh is high due lower chance of career
development and small pay scale.
• Low brand recognition: A lot of people are not aware of the brand named DARAZ Bangladesh.
They mostly know bikroy.com or ekhanei.com
• No refund on specific products: In some products like books, some clothing they do not offer
refund.
• DARAZ is only focusing on online marketing.
Opportunity
● Emerging online market: The online market in our country is still an emerging market with a lot
of potentially.
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● Take order from outside Bangladesh: DARAZ Bangladesh can take order directly from outside
Bangladesh and delivery them to a destination inside Bangladesh like UpoharBD.com
● Gift delivery service: DARAZ Bangladesh can also take gift deliveries orders like cakes or cards
or flowers.
● Emergency delivery: They are currently not offering emergency delivery service like same day
delivery but they can since there is a demand of it.
Threat
● Upcoming native competitors: Upcoming native competitors can be a big threat. As a lot
competitors are coming up.
● International giants: International giants like Amazon or EBay can come to our market and take
over it if DARAZ Bangladesh cannot make a strong position in the market.
● Political instability: Bangladesh is a country with unstable political history. So political incident
can harm the business in times.
● Lower internet availability: As a third world country internet is not yet widely available
everywhere in our country so DARAZ Bangladesh is still out of reach of a lot of potentialmarket.
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CORE COMPETENCIES
For a business to run smoothly one need to look at various things. An organization need to forecast
its profitability, have to decide on what kind of resources to use. For this reason it is very much
important to get advantage over its competitors through the core competencies. Here we are
focusing on the core competencies of DARAZ:
1. Chinese business giant Alibaba has expanded its e-commerce empire into South Asia after
it acquired Daraz in an undisclosed deal. Getting products and support directly from
Alibaba is the main core competency of DARAZ.
2. DARAZ has a team of around 400 people. This big team can handle huge demand and
supply without any extra pressure.
3. As they source their products directly from the manufacturer, so they can offer the cheapest
price for most of their products.
4. As they can source products from Alibaba vendors, so they can offer the rare products
which other ecommerce business owners can’t even imagine.
5. DARAZ has the maximum number of products and offerings comparing to other
ecommerce sites.
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IMPLEMENTATION STRATEGY
DARAZ Bangladesh Ltd. is mainly an ecommerce site. As a result they focus mainly on the
online marketing to boost up their sells. Some of the mediums that they use for online marketing
are discussed below:
• DARAZ Bangladesh Ltd. uses the social media websites for their online marketing.
• They runs a Facebook page where they give regular updates on their products and
upcoming campaigns.
• DARAZ Bangladesh Ltd. uses Twitter for their online marketing.
• They gives advertisements on the YouTube.
• DARAZ Bangladesh Ltd. gives advertisements on different websites all the time. If any
• visitor clicks on that advertisements they will directly go to the webpage of DARAZ
Bangladesh Ltd.
Even though the online marketing is overtaking the field of Offline marketing nowadays, the
offline marketing still did not lose its ground. DARAZ Bangladesh Ltd. also does offline
marketing. Some of the mediums that they use for offline marketing are discussed below:
• Advertisement on the daily newspapers.
• Participating in different types of fairs.
• Locating banners of DARAZ Bangladesh Ltd. in different markets during their Fatafati
• Friday campaign.
• Giving vouchers to its consumer to get discounts in different restaurants.
• They give discounts cards to its consumers during their Fatafati Friday campaign. So
• that they gets discounts from some selected Brands.
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CONCLUSION
DARAZ Bangladesh Ltd. still has a great chance in the market to develop and acquire the
maximum share of the market. From the very beginning, the company had faced many challenges
and difficulties to reach today’s position. From a very small unit, it is a giant organization today.
The companies in the e-commerce industry should concentrate on quality product and quality
service to take this industry towards further success. Every department works hard and the
efficient workforce with advanced technological infrastructure will make DARAZ Bangladesh to
maintain the top position in the Bangladesh E-commerce industry.
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REFERENCES
1. "E-commerce in Bangladesh". archive.dhakatribune.com. Dhaka Tribune. Archived
from the original on 2017-02-04.
2. Company Official Website: https://www.daraz.com.bd/#
3. "Daraz announces its mission to 'make it easy to do business anywhere in era ofdigital
economy'".
https://www.brandsynario.com/daraz-announces-11-11-worlds-biggest-sale-day/
4. "How online shopping is changing Bangladesh". theindependentbd.com. The
Independent Bangladesh.
http://m.theindependentbd.com/post/110310.