Assignment on

Aarong
 Assignment on
Aarong

Course# 501

Submitted To
Dr. M. A. Mannan
Professor
Dept. of Management Studies
University of Dhaka

Submitted By
Group – 3
Serial no. Name Id.
1 Bithi Roy 221
2 S.M. Tariqul Islam 232
3 Md. Nazmul Islam 236
4 Md. Saifur Rahman Bhuiyan 248
5 Shamir Chakraborti 251

MBA 11th batch

Strategic and International Management (SIM)
Dept. of Management Studies
University of Dhaka

Submission Date
April 26, 2010
 Table of Content

Topic Page No.

Companies Background 1-11

• Emergence 1

• Organizational Structure 3

• Financial Structure 4

• Products and Services 4

• Distribution Channel And Outlet 8

• Marketing Promotion 11

• Mission and Vision 11

SWOT Analysis 12-13

Strategic Objective 14

Reference 15
 Aarong
Company’s Background:

E mergence

Aarong is a chain of retail outlet located in major cities in Bangladesh an enterprise of BRAC. It established
in 1978, Aarong is a fair trade organization dedicated to bring about positive changes in the lives of
disadvantages ascertains and underprivileged rural woman by reviving and promoting their skills and craft.
Reaching out to weavers, potters, brass workers, jewellary, jute workers, basket weavers, wood carvers,
leather workers and more, Aarong, to embraces and nurtures a diverse representation of 65000 artisans
work with the collaboration of Ayesha Abed Foundation (AAF), 85% of whom are women. Today, Aarong
has become the foundation upon which independent cooperative groups and family based artisans market
their craft, in an effort to position the nation’s handicraft industry on a world platform of appreciation and
acknowledgement.

Aarong Production Centre (Ayesha Abed Foundation)

The Ayesha Abed Foundation (AAF) is an organization that aims to provide avenues for employment and
income generation for underprivileged rural women. It is an enclave for women, formed to uplift them
economically, through their work as producers, and also socially, through their development into
entrepreneurs. The Foundation provides an appropriate working environment, financial and technical
assistance, and training to develop the women’s skills in various crafts. The Foundation was established to
commemorate the memory and work of late Mrs. Ayesha Abed, a co-worker and wife of the Founder and
Chairperson of BRAC. The work that is done in the Foundation is a testament to her commitment to the
issues of education, training and employment opportunities for disadvantaged women. It was she who in
1976 initiated all the present major activities of AAF in Manikgonj.

The AAF aims to work with the most underprivileged women in the society. These women are often the
most neglected and are in need of much assistance and support. The AAF plays the role of a facilitator.
The women are placed in an enabling environment, with other women of similar socio-economic
backgrounds. They are trained and then given the opportunity to generate income. One of the major
challenges that these women have to face is that they are marginalized and they, on their own, have no
way of becoming part of the economic system. This is where the AAF steps in, helping such marginalized
women out of their peripheral existence in society, and giving them the opportunity to become involved in
sustainable enterprise.

The AAF is closely interrelated with other programs, especially BRAC Development Program (BDP) and
Aarong. The women workers of the AAF come from the BDP organized Village Organizations. Working at
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the AAF thus gives the women access to other BRAC programs. All of the AAF’s finished products are sold
through Aarong, which additionally provides designs, raw materials and financial support to the AAF. Since
AAF supplies exclusively to Aarong, it is treated as Aarong Production Centers.

Goals of AAF
• Empowering destitute rural women by providing opportunities for employment and income
generation.
• Ensuring commercial success of the enterprise of women producers.
• Reviving traditional skills of rural artisans.
• Services
• Free Medical check-up including free eye treatment, eye-glasses and treatment costs for severe
illnesses
• Advance wage payments for employees in need
• Day care services
• Workers retirement fund

Present Situation of Artisans

Holding steadfast to its original mission, Aarong today supports the lives and livelihoods of nearly sixty five
thousand rural artisans and handicraft producers, 85% of whom are women. More than forty thousand of
these women work directly for Aarong in its 13 production centers in Baniachong, Gorpara, Jamalpur,
Jessore, Kushtia, Manikganj, Rajbari, Sherpur, and Pabna, Pollobi, Kurigram, Nilphamary, Jhenaidah and
653 subcentres spread across Bangladesh.

Twenty five thousand independent cooperative groups and traditional family-based artisans also market
their crafts through Aarong. Potters, Brass Workers, Jewellers, Jute workers, Basket Weavers, Handloom
Weavers, Silk Weavers, Wood Carvers, Leather workers and various artisans with specialized skills from all
over the country come to Aarong for marketing and support services.

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O rganization Structure of Aarong
Aarong has created job opportunity for the unemployed people. They also offer part-time job for the student
as a sales person and pay a good amount of compensation to its employee. From it organogram we have
got clear idea about the work and order flow of its employee.

Aarong

Area/ Outlet Manager

Supervisors of several departments

Handicrafts Cosmetics Jewellary Leather goods Pottery

Sales Person Sales Person Sales Person Sales Person Sales

Sales person Sales person Sales person Sales Sales

From this figure we see that every area or outlet under the control a manager and department is under a
supervisor. The main responsibility of the supervisor is to control the sales man of every department. The
supervisors receive the product from the manager and keep these records. Sales persons are being
responsible to deliver the information about the sales to the supervisor. There is no chance to do any kind
of unfair means.

Information Flow Chart

Manager Supervisor

Sales Persons

From the above Information flow chart we can realize the relation among the employee of the Aarong. Here
Manager and supervisors are directly related to each other. But the sales persons are only responsible to
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inform the supervisors. In case of big problem or other occurrence where supervisor is not able to take
action then they contact with the manager which is indicated by doted arrow line.

F inancial Structure

As it is the enterprise of BRAC, it seems Aarong is to b financially strong. It is not public limited company so
it’s still does not offer shares to the public and it does not published its annual financial report to the public.
It earns approximately 70% profit annually.

P roduct and Services

For Whom? Name of Products

Men Traditional
Executive Shirts
Maanja
Fotua
Short Kurta
T-shirts
Stoles/Shawls
Sandals
Women Traditional
Western (Taaga)
Nightwear
Shawls/Scarves
Shoes
Bags
Fabrics
Children Clothes
Toys
Books
Shoes

Taaga: In Bengali “Taaga” means a certain style of Nakshi stitch. At Aarong, Taaga refers to an exciting
line of tops, kurtis, skirts, pants and accessories designed exclusively for the urban young women. Since its
inception in 2003, Taaga has received much popularity and has become the “must-have” brand amongst
the fashionable women in Bangladesh.

The fine distinction of Taaga products is that it blends western style with Bangladeshi motifs, patterns and
textures. Every piece is styled using hand embroidery, nakshi kantha, appliqué, bead and metal works or
tie dye and batik. From handloom, crushed cottons, denim, fine linen, silks to sheer muslins, Taaga exhibits
a huge range of fun and exciting day and evening wears. Recently, Taaga has launched its own line of
accessories which includes leather bags, sandals, wedges and beaded woven belts
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Segment Name of Product
Home Textiles Bed
Table
Living
Kitchen
Kids
rugs
Fabrics
Home Accessories Bed
Table Lamps
Photo Frames
Table Coasters
Napkin Rings
Mats
Trays
Diningware
Cutlery
Bowls and Platters
Living Photo Frames
Bookends
Boxes
Decorative
Hammocks
Plant Accessories
Lamps
Candles
Kitchen Aprons
Kitchen Mits
Cookbook Stand
Jewellery Gold (Collection of Gold)
Silver
Pearl
Other
Leather Shoes
Bags/Wallets
Belts
Boxes
Photo Frames
Dining Bowls and Platters
Dining ware

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 Glasses/Mugs
Hot Plates
Pitchers
Bed Bed Covers
Cushions
Quilts
Table
Tea Cosy
Table Cloth/Napkin
Mats
Nakshi Kantha Decorative
Wall hangings
Christmas decorations
Ceramics Decorative
Plates and Saucers
Bowls and Platters
Mugs and Cups
Teapots
Jute Decorative
Boxes
Photo Frames
Baskets
Candles Pillar
Floating
Decorative
Seasonal
Personal Accessories Bags
Optical Cases
Paper
Cards
Stationery
Wrapping Paper

Wood Decorative
Photo Frames
Wall Hangings
Candle Stands
Vases
Living
Shelves and Racks

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 Mirrors
Table
Bowls and Platters
Cutlery
Trays
Napkin Holder
Glass
Table
Glasses and Cups
Pitchers
Bowls

Gold Collection of Aarong Discover the mesmerizing magic of Aarong’s Gold Jewellery Collection.

The newest collection of gold jewelleries from the house of Aarong, are the ultimate showstopping haute-
couture pieces. Innovative designs blended with perfect cuts have created a gold collection that is
sophisticated sojourn with perfection. Each piece is timeless, combining gold with brilliant semi-precious
gemstones such as Rubies, Emeralds, Garnets, Sapphires and Pearls. From classic bridal gold ensembles,
fusion to contemporary styles, the Aarong Gold Collection signifies everlasting elegance and élan. The
newly launched gold jewelleries from Aarong are guaranteed to be 21karat, which are checked for its purity
through the GoldCheck Karatmeter machine. Aarong has also introduced buyback facilities for its gold
jewelleries.

Competitive Advantage among the rivalry organization

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In the above figure, a survey is conducted on the basis of product feature, quality, supplier, technology,
finance, distribution, product innovation and cost of production on several renowned organizations name-
Aarong, Rang, KayKraft, Anjans, Rina Latif, Khubsoorti, Jatra, Banglar Mela, and OG. And we see that
except the cost of production all other issues are high of Aarong. From this chart it is clear that the Aarong
lead the boutique shop in Bangladesh and as it is work from very early of independent so it creates a strong
image on country people.

D istribution Channel and Outlet of Aarong

Aarong Directly distributes its product to the consumers. Form the background of the company we get know
that the production centre of Aarong is Ayesha Abed Foundation. And many artisans work with it. A flow
chart is drawn below for the clear conception of distribution channel of Aarong.

Raw Material Production Distributing Ultimate

Suppliers House Outlets Consumers

Aarong has own outlet in the big cities of the county. Beside these it has a showroom in the London. It has
also franchise in different countries of Europe, North America and Asia. Aarong is the most popular shop in
our country. Not only to the Bangladeshi people but also to the foreigner it has appeal. Here is a chart
develop on the basis of visitors –

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Places of outlets, address and the time schedule are given in the following table.

Places of outlet Address and Time Schedule

Aarong Centre (Head Office) 346, Tejgaon I/A, Dhaka-1208
Tel: +880 2 8832139
Fax: +880 2 9898267
Email: export.aarong@brac.net
Aarong at Dhanmondi Aarong Dhanmondi
1/1, Block-A, Lalmatia
Manik Miah Avenue
Mirpur Road
Dhaka-1207
Tel: +88-02-8111607
Fax: +880 2 8828576
Email: export.aarong@brac.net
Operating Hours : 10:00am – 8:00pm
Open 7 days a week
Aarong at Gulshan Gulshan – Tejgaon Link Road
Dhaka 1208
Tel: 8821052, 8825986
Operating Hours : 10:00am – 8:00pm
Open 7 days a week
Aarong at Maghbazar Aarong Plaza
61, Shahid Shangbadik Selina Parveen Sharak
Maghbazar
Dhaka 1217
Tel: 9334766, 9360260
Operating Hours : 10:00am – 8:00pm
Open 7 days a week
Aarong at Uttara Mascot Plaza (4th Floor)
Plot 107/A Sector 7

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 Uttara Model Town
Dhaka 1230
Tel: 8916097, 8914125 ext. 501
Operating Hours : 10:00am – 8:00pm
Open 7 days a week
Aarong at Wari 36/1 Rankin Street (1st Floor)
Wari
Dhaka 1203
Tel: 7114244
Operating Hours : 10:00am – 8:00pm
Open 7 days a week
Aarong in Nasirabad, Chittagong Golden Plaza (1st Floor)
1692 CDA Avenue
Chittagong
Tel: 031-654030, 06074485325
Operating Hours : 10:00am – 8:00pm
Open 7 days a week
Aarong in Halishahar, Chittagong House: 1, Lane: 1, Block: L
Halishahar
Chittagong
Tel: 031-2515644-45
Operating Hours : 10:00am – 8:00pm
Open 7 days a week
Aarong in Sylhet 413 Naya Sharak
Sylhet
Tel: 6017, 0821-815988, 0821-713150
Operating Hours : 10:00am – 8:00pm
Open 7 days a week
Aarong in Khulna Plot A43-A44
Majeed Sharani Avenue
Shib Bari
Khulna
Tel: 6016, 041-730547
Operating Hours : 10:00am – 8:00pm
Open 7 days a week
Aarong in London Aarong
69 Vallance Road
London E1 5BS
Phone: +44 20 7247 7727
Operating Hours : 10:00am – 9:00pm

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M arketing Promotion
Young people of 25-35, for them Aarong is a trusted brand. They visit the store often, buying products
mostly for gifts, sometimes for their own consumption. For them Aarong provides the reassurance that they
have bought a quality product, that’s their friends will appreciate as it is from Aarong. but they don’t feel
excited about brand. They miss out the excitement. They don’t feel it fits completely in their life the
advertising should—
ƒ Trigger strong interest among non-users to try the brand
ƒ Encourage regular usage
ƒ Establish the new Aarong positioning

Program:
1. Aarong’s main marketing promotional activities come with their activities.
2. Sponsorship making in various occasions like religious festivals like Pahela Baishakh, Pahela
Falgun
3. Various television programs dresses are courteous by Aarong
4. Social campaigning programs are co-operated by Aarong
5. Price discounting is their promotional activities.

Besides, all this a things they use TV advertisement, Fashion show for their up-coming innovative products,
Bill board advertisement and so on.

M ission and Vision

Mission- Aarong’s mission is to help sustain rural craftsmanship and find a wider market for their product
nationally and internationally.

Vision- Aarong has one outlet in London and exporting to other countries of North America, Europe and
some Asian countries. Because of migrating Bangladeshis in those areas, they are targeting to make more
franchising activities in those North American and European region. They basically are targeting those
activities after fulfillment the customer demand in domestic market.

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SWOT Analysis of Aarong
Definition of SWOT—
Strength: Internal strength of an organization is the capability to compete on having advantages over other
competitors.
Weakness: Weakness is the company’s disabilities in the market places.
Opportunity: a chance of capturing market place with the help of internal strength.
Threats: Any kind of discomfort and intuition may feel in market place.
Positive
Strength (S)
ƒ Leading brand reputation
ƒ Specialist marketing expertise
Internal Factors
ƒ Customer loyalty
ƒ High production quality
ƒ Maximum level of sales
ƒ Strong management
ƒ Low product damage rate
ƒ Practice of indigenous customs and
values
ƒ Excellent working condition
ƒ Varity of products
Opportunity (O)
ƒ Varity of product to lure the customer
External Factors
ƒ New distribution channel
ƒ Top grab the international market
ƒ Capture more market share
ƒ Local events
ƒ New market segmentation
ƒ Seasonal fashion influence
ƒ Can be surprised competitors
ƒ Cost advantages
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Negative
Weakness (W)
ƒ Price is higher
ƒ Limited outlets
ƒ Confined with limited customer
ƒ Poor access to collection
ƒ Vulnerable to producer
ƒ No direct market experience
ƒ Limited budget for research and
development
ƒ Limited financial support
ƒ Sales persons need more training
Threats (T)
ƒ Rise of the competition
ƒ Price wars with competitors
ƒ Competitors have some superior products
ƒ Changing technology
ƒ Political instability
ƒ Economy
ƒ Sudden surprise
Strength
Aarong is a very reputed organization. They are now capturing 68% of total handicraft market share in
Bangladesh. It’s a local brand and now exporting their products outside of the country. Aarong has good
reputation for fine quality products. It has a strong management team who are continuously giving their
great effort to make it a successful one. Another important fact is that, Aarong has almost “Zero” production
damage rate which reduces their cost. They are innovative and always bring some new product in the
market which meets customer requirement and expectations. The organization is a respected employer
that values its workforce.

Weakness
Aarong has a reputation for new product development and creativity. However, they remain vulnerable to
the possibility that their producer may not be able to produce product timely due to their inability. The
collection channel of the organization is not that much structured so that they can get the products from the
producer on time and it may create problem for them in future. If any producer is not able to make the
product on time due to some personnel problem then the company will also not be able to deliver their
product on time. This is a big problem and it happens most of the time on delivery. Aarong charges higher
price relatively than their other competitors as a result some times customers lose their interest to by
product from them. Its sales force or sales girls within the outlet are not properly trained up. Sometimes
they make customers disappointed by their attitude and customer doesn’t feel good to buy from there.
Sometimes they suffer for financial problem, although it’s a rare situation.

Opportunities
Aarong is very good at capturing the advantage of opportunities. It can go for new distribution channel like it
can make some joint venture with some other small Boutique and sales its products in more places.
Through that it can capture more market share in the handicraft industry in Bangladesh. Aarong can
expand its business globally. New market for handicraft such as Europe and America are beginning to
emerge. People are now trendier about local events & functions like Pahela Falgun, Pahela Baisakh,
Victory day, Independence Day etc and they buy new and special products for these events. Aarong can
make new products to sell in those special occasions. According to the season change, people are also
changing their preference in buying products and considering this scenario Aarong can produce products
on the basis of seasonal variations.

Threats
Aarong doesn’t have any big competitors right now. But they have some small competitors like KayKraft,
Anjans, Deshal, Jattra, Khubsurti, Rina Latif, OZ, Rang and some other Boutiques established at Banani
11, who are taking their 32% customer and increasing in a slow rate. Aarong always face price wars with
their competitors. Its competitors have some superior products like OG’s Panjabi shape, Khubsurti’s design
of Salwar kamiz Rang’s Shari’s color, which is decreasing Aarongs market share as well as sales. But now
they are repositioning their Brand to compete with them.

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Strategic Objectives
On the basis of SWOT analysis we set the strategic objectives of Aarong

Strategic Objectives Financial Objectives

• New and improved product line • 10% off at sale
• Focusing on international business through • Increasing sales by 20%
franchising

Action Plan

ƒ Introduce new outlet within the country

ƒ Investment in Research and Development to develop new product line
ƒ Make efficient inventory management and increase productivity

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References:
ƒ http://www.brac-aarong.com
ƒ www.google.com/wiki/aarong
ƒ mdshossain.wordpress.com
ƒ www. bracnet.net

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