Aarong is one the most popular and leading handicraft and ethnic lifestyle brands in Bangladesh.
It has started their journey back in 1978 under BRAC initiative to empower rural artisans and
craftsman. It has supported almost 65000 rural artisans across the country. Throughout the last
decade it has gain major attention and name for themselves also as a fashion retail brand who
promotes Bengali ethnicity and tradition through their products to mass market. But over the
years, there are several major competitors arrived in the market and deshi dosh and their ten
brands are the strong one who are competing with Aarong. Apart from the emergence of these
competition, Aarong is currently in their “maturity” stage in terms of product life cycle. Even in
terms of Michael Porter’s five competitive forces theory, threat of new entrants is high, threat of
substitute is moderate, bargaining power of suppliers is low, and bargaining power of customers
is moderate. So the threat of upcoming competitors overtaking the market is quite high along
with bargaining power of suppliers is low which give Aarong the opportunity to extent their
number of artisans by investing more money which initially can be done by lower bargaining
power of suppliers. So overall the whole market situation indicates that, Aarong should extent
their market and capture major attention of customers by grabbing new market share. And one of
the major ways to achieve this target is, revising the market targeting and coming up with new
strategic positioning strategy for Aarong. In terms of targeting strategy, Aarong is currently
following “extensive targeting approach” where they serve multiple segments with product
variety, in terms of revised targeting, we are going to suggest Aarong to take “selective targeting
approach” where Aarong should target “niche segment” and in those niche segments there will
be “older customers” and “students” and they should also target to offer “product specialization”
by putting more emphasis on “Nakashi Kantha”. And in terms of positioning strategy, Aarong is
following all the three positioning concepts like functional, symbolic, experiential positioning
concepts through their clothing & accessories, home textiles & décor items, jewelry items, metal,
leather items, bamboo goods and food items among customers. So to achieve revise positioning
strategy, they should more focus on enhancing “experiential positioning concept”. To come up
with revised positioning strategy Aarong has to adjust and change their marketing program
decisions. All the marketing components like, product, value chain, price, promotion and its
strategy has to revise according to revised targeting and positioning objectives.
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Aarong Markets & Competitive space.pptx
1. MKT430
SEC01
1
Presented by
Khondokar Fardin Islam 2019-1-10-138
Amit Sen 2019-1-10-170
Sayeda Sadika Meem 2019-1-10-022
Sumaiya Afrin Bristi 2019-1-10-095
Abdur Roshid 2019-1-10-203
Markets and Competitive Space
2. Table of Content
Company Profile
Critical Strategic
Recommendation
Conclusion
Introduction
01
2
MKT430
Aarong
Explanation
05
04
02
03
3. Introduction
Owned by BRAC
Aarong
01
3
MKT430
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Possess 4 Core Values
01
03
Promotes Artisans
04
A lifestyle Bengali ethnic
and handicraft brand
Started journey in 1978
Innovation, Integrity,
Inclusiveness, Effectiveness
Through ethnic wear and
handicrafts
4. CSR based handicraft company
Largest venture of BRAC
4
It showcases works of rural artisans
from across the country to empower
against poverty, where 85% are women.
Largest lifestyle retailer in Bangladesh
Company Profile
Established in 1978
Aarong
Starting from Manikganj
25 outlets in 9 BD
metropolitan cities
Ethnic and handicraft lifestyle brand
MKT430
5. Company profile
What does it mean by
Aarong?
History & Objective
• The word “Aarong” means village fair.
• This under the ownership of the non-profit
organization BRAC.
Aarong is a Bangladeshi Department chain which
offers Bengali ethnic wear and handicrafts.
• Aarong was established in 1978 as a project which was designed to
help the poor silk farmers, block printers and embroiders in
Manikganj in central Bangladesh.
The main objective was to create a platform for the rural
artisans to sell their products so that they get a fair market
value of their products.
MKT430
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6. Aarong
02 Mission
Vision
01
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• Aarong's Vision is to build a society free of all types of
exploitation and prejudice, in which everyone has the
opportunity to reach their full potential.
• Empowering people and communities in situations of poverty,
illiteracy, disease and social injustice and interventions aim to
achieve large scale, positive changes through economic and
social programs.
MKT430
7. Innovation
7
Aarong
MKT430
Core Values and Objectives
Integrity
Inclusiveness
Effectiveness
Creating job opportunities
Generating surplus for BRAC in order to minimize
donor dependency
Ensuring long-term support and contribution toward
the sustainability of BRAC’s development
interventions
Becoming viable investments in the long run in order
to act as ‘hedge’ against future liquidity
12. challenges
12
4
Disruptive innovation
Aarong Market Challenges
Commoditaztion threats
Creating new market space
Fast changing market
Higher dependency on consumer spending
Emergence of online retail business
Repositioning of big fashion houses
Rise in discount stores
Rise in category killers
Changes in demographics
Bengali ethnic and handicraft retail industry
MKT430
13. Determine the
Boundaries and
Structure of the
Product-market
Form the
Product-Market
Describe and
Analyze End
Users
Analyze
Competition
Forecast Market
Size and Rate of
Change
Defining and Analyzing Product-Market of Aarong
Determining the boundaries and structure of the Product-Market
Retail Fashion Brand
Generic product-market
Lifestyle brand, designer boutiques,
sports clothing brand
Product type product-market
Product variant product-market
Bengali ethnic wear and handicraft
brands, western fashion brands
MKT430
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14. Retail Fashion
Brand
Lifestyle brand
Bengali ethnic
wear and
handicraft brands
High end
fashion brand
Designer
boutiques
Sports
clothing
brand
Western fashion
brands
Generic
product class
Product type
Product variant
Specific brands
Illustrative Product-Market Structure of Aarong
Forming Product-Market MKT430
14
16. Buying Decision Process for Aarong
Information search
Problem recognition
01
16
MKT430
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Alternative evaluation
01
03
Purchase decision
04
Post-purchase behavior
05
Consumer buying
decision process
stages
The need for outfits and
handicraft products
Looking for retail outlets
Aarong, Rang, Deshal,
Anjan’s
Buying products from
Aarong
Satisfaction after using
the product
17. Product form
competition
Product category
competition
Budget competition
Bengali ethnic wear and
handicraft brands
Westernfashion brands
Designerboutique
High end fashionbrands
Lifestyle brands
Sportsclothing brands
Wardrobeand outfit
Home appliances
Travelling
Restaurantmeals
Generic
competition
Analyzing Competition: Defining
the competitive arena of Aarong
Levels of competition
MKT430
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18. Key players in handicraft industry:
1. NGO exporters of Handicrafts (e.g., Aarong)
2. NGO supportive product house (non exporters)
3. Private manufacturers/exporters
4. Small private manufacturers (Non exporters, e.g.
Rang, Naksha
Bangladesh’s Handicraft Product Life Cycle
1970-1976 1977-1985 1985-2000 After 2000
Related to the accumulation of handmade product
From over the country and to sell them
In retail shops or to export in another countries.
Handicraft Industry
Industry Analysis of Aarong MKT430
18
19. Aarong’s Value Added Chains
Logistic
Planning
Sourcing
Making
Delivering
Return
MKT430
19
24. Conclusion
Nurtures diversity
Lifestyle retail brand
01
24
MKT430
02
Promotes culture
01
03
Owned by BRAC
04
Empowering rural
artisans and women
Empowered 6500 artisans
Through ethnic wear
and handicrafts
One of the 18 social
enterprises
25. Textile News, Apparel News, RMG News, Fashion Trends. (2017). ‘Aarong’, Bangladesh’s craft and fashion icon looks forward
to go international. [online] Available at: https://www.textiletoday.com.bd/aarong-bangladeshs-craft-fashion-icon-looks-
forward-go-international/ [Accessed 12 Nov. 2022].
01
References
Aarong.com. (2019). Aarong | Ethically made handcrafted products | A BRAC social enterprise. [online] Available at:
https://www.aarong.com/.
02
www.brac.net. (n.d.). Aarong, BRAC’s Social Enterprises, and Life: An Interview With Tamara Hasan Abed, Senior Director,
BRAC. [online] Available at: https://www.brac.net/latest-news/item/1129-aarong-brac-s-social-enterprises-and-life-an-
interview-with-tamara-hasan-abed-senior-director-brac [Accessed 25 Nov. 2022].
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