market

1. BANGLADESH UNIVERSITY OF PROFESSIONALS (BUP)
Faculty of Business Studies (FBS)
MBA (Professional) Program
Course Title: Marketing Management
TERM PAPER
ON
“EXISTING MARKETING STRATEGY DEVELOPMENT OF
DARAZ BANGLADESH”
Submitted To:
Mohammad Osman Gani
Asst. Professor
Bangladesh University of
Professional(BUP)
Submitted By:
Israt Jahan Masuma
ID: 2023031104
Kazi Md. Nahid Hossain
ID: 2023032002
Mst. Rokhsana Akter
ID: 2023032064
Fahmida Jannat
ID: 2023032088
Course Code: MKT8401 | 12th
August, 2021

2. INTRODUCTION:
Daraz is a creation of Berlin (German) Based Company Rocket internet. Rocket Internet was
established in the year 2007. First launch was Daraz in Pakistan (2012) and after two years of their
operation, they started doing business in Bangladesh in the year 2014. Today it operates in Pakistan
as well as Bangladesh, Myanmar, Sri Lanka, and Nepal. Daraz follows the B2C model of
conducting business.B2C which stands for business-to-consumer, is a process for selling products
directly to consumers. Daraz was introduced as the 4th eCommerce site in Bangladesh but in a
grander way. It also followed the international method of doing business and showed the
capabilities in a very early stage.
Daraz Bangladesh is currently the business leader in the E-commerce sector after having so many
competitors in the market. They have a huge number of products and the seller list is large. Still
every day new sellers and products get attached to them. Which helped them become the largest
eCommerce site in Bangladesh. Currently, Daraz is working as a unit of Alibaba (A china-based
eCommerce site). Rocket said in a statement that Alibaba has acquired the entire Daraz business.
“Bjarke Mikkelsen, Co-CEO of Daraz, said: “With this transaction, Daraz has found its natural
home in the Alibaba family, and we are proud to carry our part of the mission to 'make it easy to
do business anywhere”(Source- Dhaka Tribune)
“Daniel Zhang, CEO of Alibaba Group, said Alibaba was excited for Daraz to become a part of its
ecosystem. “Together with Daraz, we can now empower entrepreneurs to better serve consumers
in the region through our technology and expertise,” he said.” (Source- Dhaka Tribune).
VALUES OFFERED:
Providing Broader and Deeper Assortment: The number of SKUs available in daraz.com.bd is
enormous. It offers literally a vast number of alternatives that consumers can consider. Customers
can find tens of thousands of products (including clothes, accessories, bags, sports goods,
electronics, gadgets, and home appliances) from more than 400 popular globally renowned brands
to choose from. This broad and deep assortment provided by Daraz Bangladesh enables customers
to satisfy their demands for even less popular, styles colors, or sizes.

3. Extensive and Timely Information for Evaluating Merchandise: Daraz.com.bd provides
shoppers with real-time information about stock availability and price reductions on clearance
merchandise as well as about discounts and sales promotions. Customers also get a vast amount
of information regarding the offered merchandise including their key features, detailed
descriptions as well as product reviews posted by other customers who have already bought the
product and have been using it.
Some key features are:
 Personalization
 Safety
 Convenience
 Browsing
 Security/Privacy
 Feasible Modes of Payment:
 Home Delivery
 Free Shipping
 Cash on Delivery
 Free Seven Days Return
 Customer Support
 Order Tracking
 After Sales Service
IMPLEMENTATION MARKETING STRATEGY
DARAZ Bangladesh Ltd. is mainly an eCommerce site. As a result, they focus mainly on online
marketing to boost up their sales. Some of the mediums that they use for online marketing are
discussed below:
• DARAZ Bangladesh Ltd. uses social media websites for its online marketing.
• They run a Facebook page where they give regular updates on their products and upcoming
campaigns.

4. • DARAZ Bangladesh Ltd. uses Twitter for its online marketing.
• They give advertisements on 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 online marketing is overtaking the field of Offline marketing nowadays, 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
get discounts from some selected Brands.
DIRECT MARKETING:
Daraz additionally uses Direct Marketing as its IMC device so as to impart to its clients. It intends
to construct a long-haul association with its clients in this manner, utilizes client direct (CD)
channels to reach and convey its administrations to its clients without the utilization of any
mediators. Direct advertisers can utilize different channels to arrive at their clients and if there
should arise an occurrence of Daraz, it utilizes the followings:
Direct Mail- Daraz continually sends messages to its related client in the event of any offers and
limits in their offered items. For a moment, in each Black Friday Sale, it sends a regular postal
mail to the client as an update.

5. Catalog Marketing- Daraz has its own site where it executes the index promoting
system. The site's inventory comprises gatherings of numerous things together wanting to sell
at any rate one thing to the beneficiary.
INTUITIVE MARKETING
The most up-to-date and quickest developing channels for correspondence and offering to clients
straightforwardly are by means of electronic and Daraz is likewise in no less position in this issue.
A portion of the primary classes of Interactive Marketing that Daraz uses are-
Websites -Daraz has planned its site in the thought of consistent subtleties. Its site exemplifies
their motivation, history, items, and dreams and has figured out how to make it alluring on first
review and fascinating enough to make the recurrent visits. The individual pages are perfect and
messages are discernible with an awesome utilization of hues. They additionally have a talk area
where the clients can post their questions and the organization will answer them within 24 hours.
The site is additionally simple to use with respect to the accompanying reasons-
- The webpage downloads rapidly.
- The first page is straightforward.
- It is anything but difficult to explore different pages that open rapidly.
• Mobile applications- Daraz additionally has its own versatile application possible for both
android just as IOS clients and contains indistinguishable highlights from the site. The versatile
application likewise pursues a similar idea of inventory displaying.
• Display Ads for Suppliers- Daraz has likewise been utilizing the idea of showcase promotions
where it puts the logos of their marked providers' organization in their sites to get the certainty of
the clients that their items are 100% real.
• Search Ads- Daraz's intelligent showcasing additionally comprises of the Search Engine
Optimization and Search Engine Marketing systems as its advancement instrument. It puts its
online promotions on the website pages that show results from web index questions. This builds

6. the advancement of Daraz's site by expanding its permeability in internet searcher result pages
through paid publicizing.
• Internet marketing- daraz uses social media marketing on Facebook, Twitter also in YouTube.
It uses pop-up ads also for internet marketing. At the same time, it uses search engine marketing
by google yahoo, and other platforms.
MARKETING POLICIES OF DARAZ BANGLADESH LTD.
All the companies from all around the world have some specific marketing policies of their own.
The policies that they make play a vital role which determines their future success. That is why
every company tries to make their plans for marketing. The general course of action contacting
individuals and transforming them into shoppers of the item or administration that the organization
gives is just a promoting arrangement of an organization. The organization's incentive, key
showcasing messages, data on the objective purchaser, and other abnormal state basics are
altogether contained by an organization's advertising approach. The showcasing strategy educates
the advertising design, which is an original copy that lays out the sorts and timing of promoting
traps. An organization's showcasing arrangement ought to have a more drawn-out length than any
individual advertising design as the strategy is the place the offer and the key basics of an
organization's image live. These things in a perfect world don't change particularly after some time.
(Marketing Strategy)
To become successful in the highly competitive eCommerce sector in Bangladesh,Daraz
Bangladesh Ltd. implements some policies. These are:
• Launching online campaigns
• Giving vouchers
• Giving discount cards
• Promotions in social networking sites
• Promotions on different websites
Implementing the right policy at the right time is challenging. However, when it comes to
launching online campaigns, Daraz Bangladesh Ltd. launches different types of campaigns at

7. different times. They basically launch the campaigns at the end of the month. The organization
launches campaigns almost every month.
Besides that, the company gives vouchers to different types of restaurants. When the customers
show the vouchers to the restaurants, they get special discounts. The consumers of Daraz
Bangladesh Ltd. get these vouchers easily from the website of Daraz. After going to the restaurants,
they just need to show the vouchers to the restaurant. Moreover, Daraz Bangladesh Ltd. gives
discount cards to its consumers during its Fatafati Friday campaign. They make contracts with
different brands from all over the country about this. Because of the contract, the brands give
discounts to the consumers.
Furthermore, Daraz Bangladesh Ltd. does online promotional activities. This is the era of the
internet. In this era of the internet, if any company neglects online promotions, they will not be
able to survive in the market. Daraz Bangladesh Ltd. by its nature does online promotions. The
online promotions that the company does are mainly on different social media websites like
Facebook, Twitter, etc.
Finally, Daraz Bangladesh Ltd. gives their advertisement to the different websites. If any consumer
clicks on that advertisement, he or she will directly go to the website of Daraz Bangladesh Ltd.
ONLINE MARKETING OF DARAZ BANGLADESH LTD.
Daraz Bangladesh Ltd. is mainly an eCommerce site. As a result, they focus mainly on online
marketing to boost up their sales. Some of the mediums that they use for online marketing are
discussed below:
• Daraz Bangladesh Ltd. uses social media websites for its online marketing.
• They run a Facebook page where they give regular updates on their products and upcoming
campaigns.
• Daraz Bangladesh Ltd. uses Twitter for its online marketing.
• They give advertisements on YouTube.
• Daraz Bangladesh Ltd. gives advertisements on different websites all the time. If any visitor
clicks on those advertisements, they will directly go to the webpage of Daraz Bangladesh Ltd.

8. OFFLINE MARKETING OF DARAZ BANGLADESH LTD.
Even though online marketing is overtaking the field of Offline marketing nowadays, 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 Frida y
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
get discounts from some selected Brands.
OVERVIEW OF TARGET SEGMENT
Market segmentation is one kind of marketing strategy that exploits the strategy of dividing a broad
target market into a subset of consumers, businesses, or countries who have or are perceived to
have common needs, interests, and priorities, and then designing and implementing strategies to
target them. It is mainly used to identify and further define the target customers. It provides
supporting data for marketing plan elements. These elements can be like positioning to achieve
certain marketing plan objectives. The business may develop product differentiation strategies or
an undifferentiated approach that may involve specific products or product lines depending on the
specific demand and attributes of the target segment.
Target Segmentation Strategy Daraz.com.bd
The marketers in Daraz use primarily three basic steps in order to target a specific audience: data
collection, data analysis, and implementation. They use these steps to accurately gather

9. information from different internet users and to find distinct individuals that would be most
interested in their product. The data Daraz collects includes information such as the internet user's
age, gender, race, and many other contributing factors. They need to use different methods in order
to capture this information to target audiences. They levered many new methods implemented in
internet advertising in order to gather this information. These methods include demographic
targeting, behavioral targeting, retargeting, and location-based targeting.
There are several forms of market segmentation in practices. Originally Daraz uses the most
common form of segmentation, geographic segmentation. This online retailer has several separate
dedicated subdomains and websites for several countries. These countries are:
• Bangladesh
• France
• Pakistan
• Portugal
• Myanmar
But as our report topic is only http://www.daraz.com.bd, we will concentrate on the target segment
in the Bangladesh perspective only. If we look at the dedicated subdomain of Daraz for
Bangladesh, it will be clear that this retailer has segmented the target market from the view of the
following segmentation techniques:
• Demographic Segmentation
• Behavioral Segmentation
• Psychographic Segmentation
• Cultural Segmentation
• Multi-Variable Segmentation, etc.
Demographic Segmentation:
Segmentation according to demography is based on variables such as age, gender, occupation, and
education level or according to perceived benefits that a product/service may provide. Daraz has

10. used demographic segmentation to divide markets into different life stage groups and allows for
messages to be tailored accordingly.
If we look at the website, the merchandise categories like fashion that includes clothes, shoes,
accessories, watches, we find that the merchandises fall into two sub-categories like men and
women. The beauty & Health category includes merchandise called fragrance; this has also sub-
categories of men and women.
From this point of view, we can say that Daraz has divided its target segment according to gender.
In the baby, toys & kids categories we find merchandise like baby care, baby toys, girls’ clothing,
girls accessories, boys clothing, boy’s accessories, dolls & accessories, cars & remote control toys,
other toys. So from these merchandises, we can say that Daraz has arranged these products from
the tender age point of view and gender as well. The gift shop categories also indicate the
demographic segmentation of age implicitly – flowers and perfume can be thought to be targeted
for elderly persons and chocolates for children.
Behavioral Segmentation:
Behavioral segmentation divides buyers into segments based on their knowledge, attitudes, uses,
or responses concerning a product. It can be considered that behavior variables are the best starting
point for building market segments.
We see in the Daraz online store, the merchandises in category mobile phones as smartphone, in
computing categories we find laptops, printers, notebooks, flash drives, external HD, scanners,
keyboards, projectors, etc – these products actually are aimed at grouping the customers on the
basis of knowledge. And in the top brand categories we find Symphony, Maximus, Huawei,
Walton, Samsung, Nokia, LG, etc – this section has been arranged considering the usage rate in
Bangladesh that is most of the people in Bangladesh uses these brands for mobile in turn, and most
of the people has got loyalty to these brands also, this also exposes the attitude and response of the
common people to these brands. To define the target segment same reasoning can be also applied
to the top brand section of the Fashion category that includes Yellow, Bata, Ecstasy, Texmart,
Doors, Noir, etc and other top brand sections of other categories like computing, cameras, tablets,
TV’s audio-video, home appliances categories. The foreign language section of books & stationery
includes books on Academics, Fiction, Health and Fitness, Leisure, Politics, society and history,
People – these products indicate the customers of the knowledge group.

11. So considering all these key features we can say that Daraz marketers have exploited the behavioral
variable to attract the segment of knowledge-based people and also a group of people who have
loyalty to some particular brands.
Psychographic Segmentation:
This sort of segmentation is sometimes called lifestyle segmentation. This is based on activities,
opinions, interests and how people spend their leisure, and which external interest influences the
consumers. Daraz has got selfie sticks in mobile categories, compact camera, DSLR camera,
camcorder in the cameras category. These products actually target those people who have
an interest in photography. They have got sports materials and accessories in the sports & fitness
categories to cover those kinds of people who are sports and fitness-oriented. They also have a 3D
LED TV, smart TV, home theatre audio system to cover the leisure time of the high-end people.
So Daraz has used the psychographic segmentation system to arrange its merchandise according
to the interest, leisure activities, and targeted lifestyles to group their intended audience.
Cultural Segmentation:
Cultural Segmentation is used to classify markets according to cultural origin. Culture is a strong
dimension of consumer behavior and is used to enhance customer insight and as a component of
predictive models. Daraz has exploited cultural segmentation to enable appropriate
communications to be crafted to particular cultural communities and to measure market
penetration in key cultural segments by product, brand, channel as well as traditional measures of
recency, frequency, and monetary value. Daraz has arranged products like Fatua & Kurti, Shalwar
Kameez, Tops, Saree, Pants & Leggings in women section and Panjabi & Sherwani, Shirts, T-
shirts, Jeans, Formal Shoes, Casual Shoes, etc in men section of the fashion category keeping in
the mind the cultural segmentation which significantly covers the almost every cultural groups in
Bangladesh.
Along with all these segmentation, Daraz has also used multivariable segmentation to cover all
other consumers by keeping Home & Living, Games & Consoles, Gift Shop categories, etc. They
have also arranged cut-off prices to attract all sorts of audiences. In this way, a broad section of
consumers is attracted to www.daraz.com.bd.

12. COMPETITIVE MARKET ANALYSIS:
In terms of doing business online, the competition is huge. In addition, in online retailing, there is
no exception. There are several companies that start online retailing even if they are small but still
give a big competition to large companies. In addition, pickaboo gives hard competition to daraz
as they are growing largely even if they come recently. They also give similar offers like daraz
and try to grab the customer. Though daraz is at the top sites in Bangladesh and almost has 60
percent of people have chosen daraz as the top site but they always need to look at their competition
as they are growing also. Daraz is continuously working on their website design, adapting new and
easy payment methods,s and works for customer satisfaction, which is the more important.
Key E-commerce platforms in Bangladesh: Major e-commerce websites operating in
Bangladesh are listed below:
 www.ajkerdeal.com
 Evaly.com.bd
 www.daraz.com
 www.pickaboo.com
 www.chaldal.com
 www.priyoshop.com
 www.bagdoom.com
 www.rokomari.com
Figure: E-commerce platforms of Bangladesh

13. The e-commerce Association of Bangladesh (e-Cab), the trade body for eCommerce in
Bangladesh, estimates there are 700 e-commerce sites and around 8,000 e-commerce pages on
Facebook. And yet every day new e-commerce sites are being introduced. A few days ago Rahim
afrooz venture Deligram started an e-commerce business Which can be proven as a big competitor.
Another E-commerce site named Evaly.com.bd started working with huge investment recently and
doing so many promotional activities costing 6-7 crore investments on campaigns only. These can
make a very competitive marketplace for eCommerce sectors. Yet there is news that Amazon can
be launched in Bangladesh soon that will harden the business of many of the e-commerce sites.
As leader in internet retail in Bangladesh, Daraz has been following the Bangladeshi organic
frameworks for almost 40% of total retail markets, while in his shortlisted 43 fresh
organizations, which he is properly following; Chaldal has also been one of the top retail
investors in Bangladesh as an on-line retail company. To help the home-created financial
specialists, the administration revealed the hotly anticipated National Policy for Digital Trade.
This fresh strategy does not empower distant economic experts to participate in any e-commerce
company in Bangladesh at more than 49%. This approach was employed to secure and assist
the economic experts in the neighborhood. (4) The arrangement also requested that the business
elements of the Internet clearly show the subtleties of the products sold on the web, also the law
has been established for customer safety purchase and payment assurance in online. There is
presently a draft online business strategy. It is forwarded to the office for its final approval.
In order to understand the popularity of the online shops among the top 5. Customers were asked
to point out the online shops they have visited. In this section, most customers (92.5%) pointed

14. out Daraz Bangladesh. In second Pickaboo, with 72.5% and in third Ajkerdeal.com with
48.8%.
Besides Daraz.com There 23 online businesses that are considered to be the direct and indirect
competitors of Daraz according to their business pattern. Direct competitors are those that are
doing business in the same that Daraz is doing and Indirect competitors that are doing business on
specific products or indifferent ways. The competitors are-
1. Ajkerdeal.com- Online shopping in
Bangladesh.
2. Bagdoom.com- Fashion, watches,
electronics.
3. PriyoShop.com- Online shopping.
4. Othoba.com- Pran company’s
ecommerce website. ClickBD.com-
Online buy-sell.
5. ClickBD.com- Online buy-sell.
1. Rokomari.com- Onlinebook shop.
2. Pickaboo.com- Mobile and electronics.
3. Chaldal.com- Online grocery shop.
4. Iferi.com- Online home and living
business.
5. KhaasFood.com- Another online
grocery business
6. Buymobile.com.bd- Onlinemobile and
electronics business.
7. Branoo.com- Online shop for brand
products.
8. Sheba.xyz- Home service.
9. Kiksha.com- Online shopping.
10. Shoparu.com- Books and fashion.
11. ShoppersBD.com- Fashion and
electrics business.
12. ITbazar.com.bd- Online mobile,
computer and electronics business.
13. Shadmart.com- Biggest online
business in Bangladesh.
14. Giftghor.com- Online shopping.
15. Ajkeroffer.com
16. Aponzone.com
17. BanglaShoppers.com (cosmetics, and
personal grooming products)
18. Bikroy.com (mainly second-hand used
product’s business)
Among these competitors shoppersBD, PriyoShop, Giftghor, Ajkerdeal, ClickBD, Iferi,
Ajkeroffer, and Aponzone are the top rivals of Daraz.com. They are directly competing with Daraz
in different product categories and more recently chaldal.com is competing with Daraz in the
grocery sector.

15. IDENTIFY THE THREATS FROM DARAZ COMPETITORS:
Investigating the dangers to your business requires some mystery, and this is the place your
investigation can be excessively subjective. A few dangers are unmistakable, for example,
another contender moving into your territory, yet others might be just natural suppositions that
bring about nothing. Having said that, it's greatly improved to be cautious on the grounds that if
potential risk becomes a genuine one, you'll have the capacity to respond significantly snappier:
you'll have thought about your choices as of now and ideally likewise set up some possibility
arranging. (Hui, 2007)
In Bangladesh, a lot of other companies are operating as an ecommerce site. Many of them are
successful. Because of these competitors, Daraz Bangladesh Ltd. is facing some threats. Some of
those threats are big and some of those are small.
Daraz Bangladesh Ltd. faces the threat of nuclear business from its competitors. When other
ecommerce sites sign up with the vendors or sellers, they put some conditions that are harmful
for Daraz Bangladesh Ltd. Some of the competitors of Daraz Bangladesh Ltd. puts conditions
that, the vendors or sellers will not sign up with any other ecommerce sites in Bangladesh. These
types of conditions are very harmful for Daraz Bangladesh Ltd.
Another threat that Daraz Bangladesh Ltd. is facing from its competitors is low order volume. The
competitors of Daraz Bangladesh Ltd. take orders in a very low scale. Whereby Daraz Bangladesh Ltd. do
not take any order in a low volume. As a result, Daraz Bangladesh Ltd. is losing some of the consumers to
its competitors.
Problems in Ecommerce- Daraz:
 Unsettled market
 Unaware customer base
 Lack of internet users
 Lack of Customer understanding
 Seller honesty
 Transportation cost
 Transaction difficulties

16.  Lack of online banking
 Unpopular mobile banking
 City based popularity
 Local competition
 Bad word of mouth
In the case of reliability Daraz Bangladesh got the vote from maximum customers with 73.8%
votes. However, in second majority customers (17.5%) rely on Pickaboo.
IMPROVE THE MARKETING MIX OF DARAZ BANGLADESH:
It comprises 4 important factors of a company with which any company can analyze their
competitive advantage in the market. The factors are known as the 4ps-
 Product
 Price
 Place
 Promotion
• Product: Daraz Bangladesh Ltd generates basically no products at all. It is an online marketplace
selling its products by distinct kinds of vendors. Customers can buy the products they want from
Daraz. They can find it in various categories like Men's Fashion, Women's Fashion, Phones &
Tablets, TVs, Audio & Cameras, Computing & Gaming, Appliances, Home & Living, Sports &

17. Travel, Beauty & Health, Baby, Kids & Toys, Grocer's shop, Other Categories. In a column on the
website, customers can discover all these categories mentioned above. They can search in a search
box on the website for their required products. Daraz sells all these products from various vendors
by charging the vendors with separate commission rates.
• Price: Daraz sets no cost whatsoever on the product. It provides prices based on the seller's
price. Due to the price set by the vendors, the prices of the same products in Daraz sometimes
differ. Sometimes the vendors offer discounts on their product’s price.
• Place: Daraz’s location is entirely online or virtual. Sellers del sell all their goods through Daraz
website. In any periodic type store, Daraz doesn’t sell any items. Daraz web address is
www.daraz.com.bd, which can be reached as Daraz’s location.
• Promotion: Daraz is carrying out multiple kinds of promotional operations. For their
promotions, they concentrate primarily online. By displaying their advertisement there, they are
frequently active on social media sites. They also offer on YouTube. Daraz has maintained its
private database of emails. They also retain customers’ phonebook databases. They send SMS to
clients in order to reach them and promote them. There are some unique campaigns like promotions
conducted by Daraz to increase their revenues-
SWOT analysis:
Weakness-
 Advertising policy needs to be improved
 Advertising that is more aggressive needs to be included for daraz as it has run over
the country where it has not developed with internet in the rural area.
 Some of the products not going under the return policy like magazines.
 Permanent employee and path is tough so there is high turnover rate.
 Running their business in a high competitive online retail in industry, this is hard.

18. Threat-
 A large number of competitors like picakaboo, bagdoom etc are giving tough time.
 More online retail arrived in the market and gives hard competition for daraz
 The unstable political situation, as well as policy, may impact daraz
 Not all part of Bangladesh has the internet availability so daraz may not reach those part as
it an online retail
RECOMMENDATION AND FUTURE CHALLENGES:
In this competitive market, it is important for companies to outperform other companies and also
set a standard that is not easily affected by any new ventures. So far, the finding recommends that
if a big and well-reputed company establishes in Bangladesh, there is a very thin possibility for
DARAZ to stop sales drop. To have a sustainable future, DARAZ needs to create a loyal and happy
customer base. The factors which are working as barriers for DARAZ’s growth and sustainability
and the recommended solutions are:
• Firstly, they need to ensure their product quality. Even if they have a lower number of sellers but
the product quality is good customers will shop from them longer and will not switch to other e-
commerce sites easily. So, their products must be of good quality, matching their company goal.
• As they do not have their own delivery team, they are struggling to deliver faster or emergency
deliveries. As this company has grown bigger with time. It is high time for them to create a strong
personal delivery team and better follow-up teams to ensure timely deliveries. Customers buy
online to save their time. If that purpose is not served it becomes pointless for them to shop from
DARAZ.
• After complaining and returning the default products, if customers will get prompt service and
the mistakes are alternate effectively there is a high chance that they will repurchase. Most
importantly, they will think that the company cares about their problem and is always willing to
fulfill their need. They will feel valued and will stay with the company. And later will have positive
feedback.
• While choosing the pricing strategy, the company must keep in mind that its price matches the
current market prices. The price must be competitive enough to influence customers to purchase

19. products from DARAZ. If the price is high, there should be a valid reason for it. Such as a good
quality product may have a higher price. But then again, the quality of the product must be ensured.
• Many customers have complained that they are unsatisfied with customer service. That means
they are not available, follow-ups are not done properly, replies are not as prompt as expected and
they do not have enough information about products or the process to reply promptly about them.
As I am a customer service agent, from my own experience I can say that enough information
about the products is not provided. And product status is often not provided promptly from the
outbound team of DARAZ supply chain. So the service is delayed. A huge number of calls and
queries are received every day. So, the number of agents should be increased to ensure effective
and prompt service from the department.
• Another way of sustaining the customer base is offering unique products and offers. Offers must
be one of a kind. So that customers will only think of shopping from DARAZ as there is no
alternative as such.
• They need to increase the number of advertisements outside Dhaka, to grab more potential
customers. Though Daraz is in a leading position, their competitor, Pikaboo, Othoba is also
improving rapidly, so to stay at the top, Daraz should increase their business outside Dhaka as
well.
• They need to give more focus on other social media along with Facebook. As most of the potential
customers are involved in Facebook.
• Number of TVC and Newspaper advertisements should be increased.
• Contents of the Ad should be developed, interesting and attractive.
• They need to give advertisements in the daily newspapers of the country on a regular basis.
• They need to introduce more international campaigns in Bangladesh.
Lastly to save its sales drop if big companies start their operation in Bangladesh will be good ties
with their sellers and distribution channels (Delivery associates). And customer’s reliability on the
brand. For them ensuring high-quality service is a must.

20. 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.
Still, they have many shortcomings in their existing retail mix that impede their ultimate goal to
be on the top. Therefore, to become one of the top online retail firms in Bangladesh
www.daraz.com.bd needs to make improvements in each of its retail mix components and should
concentrate on quality products and quality service to take this industry towards further success.
Within a very short period of time, they have become the leader of the e-commerce sector in
Bangladesh. It happened only because of the right marketing strategies that they have taken.
Threats from competitors like Bikroy.com, Chaldal.com, Ali express, Pickaboo, etc. are there. But
they can use economies of scale to their advantage and beat their competitors in the coming days.
Moreover, a good relationship with the customer and after-sales service is also important to capture
more market share.
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