SHWAPNO - PATHFINDERS

Chapter – 1: Introduction

1.1 Introduction

ACI group is one of the largest conglomerates in Bangladesh with interests and stakes in
varied fields. SHWAPNO, a concern of ACI group established in 2008 is an integral part of
the overall ACI group. It represents and exemplifies ACI’s commitment to bring about a
better Bangladesh and be a catalyst to change the lives of millions of individuals for the
better. SHWAPNO, with its 81 (67 Shwapno and 14 Shwapno Express) retails stores,
situated in strategic positions around Bangladesh is the largest retail chain in the country
with over 35% markets share of the growing 15 Billion taka retail industry (ACI-
Bangladesh, 2018) (Shwapno, 2018).

There is nothing called Full Prove System. Always there will be a room of improvement.
As this is reasonably a new industry which is having a great prospect in Bangladesh, we
will try to find out the current operation system. By this study, we will be trying to give
some recommendations on the basis of existing operation system which may help Shwapno
Retail Chain Shop to proceed in an untouchable height in this industry (Author, 2018).

1.2 Objective of the Project

Theoretical knowledge is not always sufficient because there is a gap between theoretical
knowledge and practical work. This Project has been initiated mainly to minimize the gap.
So this practical experience on various activities and functions of “Shwapno Retail Chain
Store” will help us in future by increasing my knowledge and experience. (Author, 2018)

The core inspiration to selecting this as or affiliation topic is, this will allow us to explore
our area of interests and apply academic knowledge of MBA program side by side. Doing
final project on Shwapno Retail Chain Store is a great opportunity to have an overall idea
about operations management, strategic management, human resource management, supply
chain management and so on. Having practical experience in retail chain industry also
should be proved as helpful for any kind of job. This will help us better understand the
implication of theoretical knowledge in real life situation. By this project, both we and the

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organization will be benefited as after a deliberate analysis we will try to give some fruitful
recommendation which will help them to expand their business arena as well as help them
to maximize their profit. (Author, 2018)

1.3 Methodology

a. Data Collection Method: Assessing and identifying the total operation of Shwapno
is a matter of qualitative judgment. For the purpose of this study, we have collected two
categories of data.

i. Primary Data: (Appendix – A)

1) Questionnaires (Customers, Employees and Managers): We have

prepared separate questionnaires for customers, employees and managers for
better analysis of our project. Data received from customer’s questionnaire
helped us to know why customers choose Shwapno and also what are the
expectation of Shwapno. Discussion with customers was required in order to
know their opinion more precisely regarding Shwapno’s product, price,
promotion and customer service Data received from employees and
managers’ questionnaire helped us to know about operation and problem
they are facing to execute their smooth operation. (Appendix - K)

2) Executive Discussion (Management Team, Suppliers): Discussion with

supply chain department helped us to get a detailed overview of Supply
Chain activities of Shwapno, the way supply of goods are efficiently
managed from suppliers to final customers. Discussion with suppliers was
required in order to know from where goods are supplied to customers.
These discussion beside questionnaire was required to get better opinions and
some questions cannot be properly asked through questionnaires.
(References)

3) Observation: For better input of information in our project, we went to

Shwapno outlet and represented ourselves as customers to have experience

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about Shwapno’s sales activities, customer responsiveness and pricing etc.

We followed how customers and members of Shwapno are behaving with
each other. (Author, 2018)

ii. Secondary Data: (Appendix – A)

1) Internet: One of the major secondary data source is internet, which includes
information from Shwapno’s website was required to know about company
history and types of product offered by Shwapno. Moreover, we picked some
of the data from some renowned websites as well. (References)
2) Earlier Project Works: In some areas of the project work we had to take
information from project works done earlier by other universities students on
Shwapno and other super stores. (Point) (Islam, 2014)

b. Sampling Techniques: To get a concrete feedback, we have followed the Simple

Random Sampling technique to collect data. Sample size of our survey was 30
Customers, 10 Employees and 03 Managers from various outlets. Customers were
required to collect information regarding what customers think about product range,
product price and customer service of Shwapno etc. Employees, mainly sales
representatives were taken as sample in order to know about sales and promotional
activities of Shwapno. Managers were required in order to know about Human Resource
Management of Shwapno. (Appendix - A)

1.4 Limitations

Though we put our best effort to fulfil our determined objectives, still there were some limitations
we had to go through- (Author, 2018)
a. Very few customers were egger to provide data.
b. The area on this term paper is very big but we had to finish the work within a very short
phase.
c. Some of the data are not exact because of their business policy.
d. As our sample size was small, our findings might not be fully accurate.
e. We have concentrated our effort mostly in Sylhet.

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Chapter: 2 – Overview of the Organization

2.1 Company Overview

The Mother Company (ACI Limited) Started its Journey in 1940. In that year, ICI Plc, a UK based
company started its operation in Bangladesh. During that time, their business was mainly import
based. In 1968, they established their first manufacturing plant in Narayanganj. After
independence, in 1973, the company changed its identity as ICI Bangladesh Manufacturers Limited
and started its operation independently. In 1992, ICI Plc divested its shares to local management
and ACI came into existence. In 2008, ACI Logistics Ltd. is launched with the dream to change the
life of Bangladeshi Consumers with the Brand Name “SHWAPNO” in the form of retail chain.
Presently Shwapno is operating 6 outlets in Sylhet Region. (ACI-Bangladesh, 2018) (Shwapno,
2018) (Appendix – B and D)

2.2 Mission and Vision (Appendix - A)

a. Mission. Shwapno doesn’t have any specific mission. In light of their mother
company ACI’s mission, they are operating their business. Mission of ACI is:

"To enrich the quality of life of the people through responsible application of
knowledge, technology and skills. ACI is committed to the pursuit of excellence
through world-class products, innovative processes and empowered employees, to
provide the highest level of satisfaction to our customers" (ACI Limited, n.d.)

b. Vision. The vision of Shwapno is

“Seed to Shelf” which means connecting farmers directly with consumers

(ACI Limited, n.d.)

2.3 Values of Shwapno (Appendix - A)

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To deliver success Shwapno has a clear set of values & beliefs (Department, 2018):

a. Impeccable Integrity - We are honest, transparent and ethical in all our dealings.

b. Passion to Win - We deliver what we promise by bringing the best in all of us

c. Delightful Experience -We win the hearts and minds of our employees and consumers
by offering relevant quality, value and service.

d. Living an Enterprise Culture - We believe in trust, truth and teamwork

e. Making a Better World - We compassionately contribute to the community we live in

f. Continuous Improvement - We constantly learn and innovate to create new paradigm

g. Count Every Paisa - We treat every taka spent as our own for creating value for our
consumers

2.4 Value Tree of Shwapno

Shwapno’s Value Tree is a procedure used in multiple criteria decision analysis in which
objectives are arranged hierarchically such that top-level objectives have supplementary objectives
or desired attributes within them, which in turn have other lower-level attributes. (Appendix - C)

2.5 Value Chain Activities

A value chain is a set of activities that an organization carries out to create value for its
customers. Shwapno also carry out a set of value chain activities. (Appendix – J)

2.6 Organizational Structure of Shwapno

The organizational structure of Shwapno’s head office and outlets are different. Head
Office run under the supervision of Executive Director. In the outlets of Shwapno, there are two
departments namely Back Store Team and Front Store Team. (Appendix - E)

Chapter: 3 – Comparative Analysis

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3.1 Commencement of Analysis

Throughout our MBA course we have studied various subject such as Management and
Organization Behaviour, Human Resources Management, Marketing Management, Operation and
Production Management, Research Methodology, Strategic Management etc. We select Shwapno
as our project company which is operated by ACI Logistic. Shwapno is renowned retail shop in
Bangladesh and market leader in Sylhet. In this project, we try to implement our theoretical
knowledge related to practical aspect. To prepare this project, we try fit 3 model such as SWOT
Analysis, Porter’s Five Forces Model and Building Blocks of Competitive Advantage which
we learnt in Strategic Management course. In SWOT analysis we try to find some internal and
external factors affecting Shwapno’s operation. Porter’s Five Forces Model and Building Blocks of
Competitive Advantage has been prepared based on manager and customer review. Apart from
those models, we tried to fit Business Model Canvas which gives a complete view of this
business. Finally, from our analysis on Shwapno, we provided some findings and recommendations
which may strengthen Shwapno’s position in Sylhet region. (Author, 2018)

3.2 Porter’s Five Forces Model (Appendix - F)

3.2.1. Risk of Entry by Potential Competitors: Moderate

a. Total area of Sylhet city very small compare to Dhaka. Shwapno has already 5 retail
outlets across the city, those are located in such areas, which almost cover every
residential area of the city. So we can say that super market industry in Sylhet is
almost saturated. But even after that, a lot of Retail Chain Shop is operating across
the country like Agora, Minabazar etc. As Sylhet is a divisional city, they will try to
keep a step in this city. (Shwapno, 2018) (Author, 2018)

b. Shwapno has created a reputed brand image among customers because they are the
market leader and getting first mover advantage which is likely going to make
difficulties to enter new in super market industry in Sylhet city. (Shwapno, 2018)
(Author, 2018)

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c. Since Shwapno operating in Sylhet from last few years, they have already created
loyal customer in the city. (Shwapno, 2018) (Author, 2018)

d. To establish a retail super shop, need huge capital requirement. So, entry in an
established market will not be easier. But, to increase brand value and reputation,
big retail chain shop may invest in this area. (Shwapno, 2018) (Author, 2018)

3.2.2. Rivalry among Established Companies: Low

In Sylhet city rather than Shwapno, there are two other super shops such as Taradin and
Fiza.

a. Taradin, is a much smaller in size and their product range compare to Shwapno,
Taradin has only 1 outlet while Shwapno has 5 outlets in the city. Therefore
considering the number of outlets, size and product range Taradin doesn’t have any
competitive advantage over Shwapno. (Author, 2018)

b. Fiza has opened a super store in the outskirt of Sylhet city, they offer wider range of
product like Shwapno and outlet size is also very large but since it is far away from
city, it increases traveling time and expense for customers. (Author, 2018)

3.2.3. Bargaining Power of Buyers: Low

Since the price of products are fixed in Shwapno, bargaining power of buyers are low. For
example, a customer willing to buy beef enter Shwapno but the price displayed seeded high
to him. So he decided not buying beef from Shwapno rather he consider Bengal meat or
local vendor. But they doesn’t have the scope to bargain. (Author, 2018)

3.2.4. Threats of Substitutes: High

a. If Shwapno set price of product especially perishable goods higher than the open
market, then customer likely to switch to open market. (Author, 2018)

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b. Small retail shop in residential areas are substitute of Shwapno. (Author, 2018)

i. If a person want to buy small number of goods he may choose to buy from small
shop near to his house rather than going to Shwapno. (Customer, 2018)

ii. In residential area, small shop also offer all types of daily need product like
ration items, beverage, toiletries, bakery items etc. Many customer buy goods in
large quantities from those shops at the beginning of the month and owner offers
credit for few days since they know each other from long time, while this service
isn’t available on Shwapno. (Customer, 2018)

3.2.5. Bargaining Power of Suppliers: Moderate

Giant suppliers have higher bargaining power than Shwapno. For example, Unilever,
Nestle, Square etc. has high influence in the market. So, it’s difficult for Shwapno to
bargain with this type of giant suppliers. On the other hand, small suppliers like BD Foods,
Globe etc. has less bargaining power as Shwapno has more influential power then them.
(Author, 2018)

3.3 Building Block of Competitive Advantage (Appendix - G)

3.3.1. Superior Quality

Shwapno has efficient supply chain network. They collect perishable product from farmers
and local vendors. This help them to ensure fresh quality of goods and make them available
to customers. Moreover, they doesn’t compromise with the quality of the products. A
representative ensure the quality of the LPP from the root level of the production. For
example; Supplier of Fish has to maintain the specified fish foods, maintenance of ponds
etc. A representative also remain present when the products are collected from the field.
Even after that, if any anomalies found after coming to the outlet, products will be RTV.
(Supplier, 2018) (Department, 2018) (Hasan, 2018)

On the other hand, for purchasing non-perishable products, Shwapno gives priority to
reputed brand. When any supply of central order come to outlets, BSM first check the

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quality of the products. If there is any problem with the product, by informing Procurement
Department, products are returned back to vendor (RTV). If everything remain all right,
BSM receive the products. They also follow up the Vendor Managed Products so that they
maintain appropriate quality of those products. (Supplier, 2018) (Department, 2018)
(Hasan, 2018)

In store, to ensure the quality of products, Floor-in-Charge and quality audit team always
swap their eyes on the racks. (ACI Limited, n.d.) (Hasan, 2018) (Shwapno, 2018)

3.3.2. Superior Customer Response

Shwapno treats customer as a King, therefore Shwapno is very responsive towards full
filling customer demand. For example, if a particular product isn’t available in Shwapno
outlet, then its manager informs the loyal customer about its availability in any other
Shwapno outlet. If the customer has time, then they manage it from another outlet. Even if
it is not available in Sylhet, they try to bring it from their Central Warehouse as quickly as
possible. (Hasan, 2018) (Shwapno, 2018) (Author, 2018)

3.3.3. Superior Efficiency

Shwapno can quickly deliver bulk amount of product ordered by customer. With efficient
inventory management system, Shwapno can keep track of its inventory level. Considering
lead time when the inventory level of a product comes down to a certain quantity,
immediate replenishment is to be done. To be efficient on their business, they made their
supply chain management very effective and efficient. Always they keep stocks of 15 days
to ensure that no customers are going empty handed. (Hasan, 2018) (Shwapno, 2018)
(Author, 2018)

3.3.4. Superior Innovation

Shwapno always try to innovate some new marketing strategy which sometime give them a
hyper break through. Sometime by passion they do some disruptive activities by which they
gather some new ideas and sometime it comes from creativity of loyal employees. For

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example; innovation of their activation plan made customer to a loyal customer. (Hasan,
2018) (Shwapno, 2018) (Author, 2018)

3.4 SWOT Analysis (Appendix - H)

3.4.1 Strengths. According to our analysis, we could find out the following Strengths
Shwapno Retail Chain Stores are possessing with (Author, 2018):

a. Loyal Customer. Shwapno is having a huge number of loyal customers. Statistics

shows that, everyday Shwapno is serving more than 35,000 customers. (Shwapno,
2018)

b. Strong Supply Chain Network. Shwapno is maintaining 81 outlet in maximum

districts of Bangladesh. They developed a very strong Supply Chain Network to
ensure the utmost satisfaction of maximum customers. They are following the
modern trading system by which ensuring quick replenishment of products, location
wise customer requirement database and very decent relation with local vendors. To
keep everything under proper accountability, they are using SAP – ERP software
accounting system which allow them to do actual time analysis as well. (Author,
2018) (ACI Limited, n.d.) (Department, 2018) (Hasan, 2018)

c. Loyal Employees. Loyal employees give distinct competency to any organization.

Shwapno is having a team of very expert loyal employees on their organization.
Turnover rate of management team is very near to the ground which is allowing
them to progress in a great rhythm. (Hasan, 2018) (Author, 2018)

d. Varieties of Product. Presently, Shwapno is dealing with more than 30,000

products. In any convenient outlet, they use to keep 15,000 – 20,000 products and
in any super store outside Dhaka, they use to keep 20,000 – 25,000 products. Super
store inside Dhaka use to preserve almost 30,000 products in their outlet. It is very
hard to find this amount of variety even in a market. By keeping varieties of product
they are ensuring customers from all classes. (Author, 2018) (Hasan, 2018)

3.4.2. Weaknesses

a. Pricing. As Shwapno doesn’t compromise with the standard of the products for
which their procurement cost become high. In ratio with that, their retail price also

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goes high which doesn’t want to take into consideration thus it became a weakness
for them. (Author, 2018)

b. Shortage of Space. Shwapno has a huge amount of SKU. But equating the amount
of products of them, they could manage very less amount of space. For that reason,
their products overfilled in the outlets which creates problem for customers
movement. (Author, 2018)

c. Dependency on Supplier. They are highly dependent on suppliers. Even, they are
importing foreign products using media. Though, their mother company has gone
for limited scale of production, it is not sufficient to fulfil the market demand.
(Department, 2018)

3.4.3 Opportunities

a. Changing Customers Mind-set. Now a days, people are searching for convenience
rather than economic. Earlier, people use to go around to shop from wet market and
get their daily needs. In modern era, one stop shopping concept has change the
human nature. Shwapno is offering everything which a family or any person is
requiring under a single roof. For this, people feel comfortable to shop with in a
short time which is a strength of Shwapno. (Author, 2018) (Customer, 2018)

Earlier, men use to work for the family. So, women use to look after the shopping
aspect. But, presently women involved them in corporate world as well. So, they
face time constrain for shopping and look for comfort as well after a hectic work
hours. So, they try to get everything under a single roof to save time and also
maintain the standard. As Shwapno is such kind of shop, it is a great opportune
aspect for them. (Author, 2018) (Customer, 2018)

b. Segmented Customers. Shwapno is keeping products for all type of customer

segments. Earlier, most of the middle class and lower class people use to think that,
they can’t effort to purchase goods from Shwapno. Now, people are coming to know
that they will get products as per their choice. So, it’s a great opportunity for
Shwapno to catch customers from all segments. (Author, 2018) (Hasan, 2018)

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c. Incising Per Capita Income. Each year, per capita income is rising. When income
of any person is increasing, people want to lead a better life and comfort as well.
This will be working as an opportunity for Shwapno. (Tribune, 2017)

3.4.4 Threats

a. Opportunities of Competitors (Superstores). There are lots of superstores which

are operating in Bangladesh. Moreover, some of the international chain shops are
trying to start their operation here. So, it is a huge threat for Shwapno. (Author,
2018)

b. Under Pricing through Grocery Shop. Normal grocery shops doesn’t think for
their reputation. They mix low category products with high category products and
thus reducing price in the market. It’s a threat for Shwapno as price of them are
higher than those groceries. So, unknowing fully customers are going to think that
pricing of Shwapno is high. (Author, 2018)

c. Political Unrest. Political unrest is a big threat for Shwapno. As this organization is
operating all over the country and supply chain activities are operated mostly from
Dhaka, so due to political unrest, transportation of their products from Dhaka to
other outlets will be uncertain. (Author, 2018)

d. Government Policies. For some of the government policies, Shwapno may be

obstructed to operate smoothly. Moreover, government is not patronising this
industry due to political issues. Government is pursuing for the quality checking,
VAT et.c only in the large chain shops, not for the open market. There are certain
government rules and regulations for which affects the supply chain activities. For
example; at present, it is restricted to import baby foods like NIDO, HEINZ etc. But
it is very much available in the market. So, when this product comes to Bangladesh,
it require a good amount of budget to fulfil the requirements of the customers.
(BSTI, 2018)

Again, there are some products which is having a different type of expiry date. As an
example, under some cosmetic box, a sign is to given that shows an open box and
written 12M. Actually for this products, the expiry date starts from the opening date
up to 12 months. But when government inspection team come for inspection, they

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search for expiry dates on those products which creates lots of confusion.
(Department, 2018) (Hasan, 2018) (Author, 2018)

3.5 Business Model Canvas (Appendix - I)

3.5.1. Key Partners

a. Supplier: Shwapno provides 30,000 categories product, so they have huge

number of suppliers. They collective product from various multinational company
like Unilever, Marico, Nestle, Ranges, Pran group, Kazi farm, Golden Harvest etc.
On the other hand they collect fresh perishable product such as fish, meat vegetable
etc. directly from farmers field. (Department, 2018)

b. ATL/BTL Media: Through television channel and newspaper they telecast

and published Shwapno’s promotional activities. But in this area, they are spending
a lot of money. (Author, 2018)

c. Mobile Operators: Shwapno have a compliance with all mobile operators

through which they collect geographical segment wise numbers to provide offers
and SMS which is applicable for them. They spend handsome amount of money but
the revenue they are expecting in return of this advertising, they are not receiving
that. (ACI Limited, n.d.) (Department, 2018)

d. Vehicle Partners: Shwapno also compliance with several vehicle rental

service. As they need to transfer their products to several locations, they need
considerable amount of vehicle support. (ACI Limited, n.d.) (Hasan, 2018)

e. Mother Company: ACI Logistics Limited is the mother company of

Shwapno. From ACI, Shwapno collect lots of products to sell in the market.
(Shwapno, 2018)

f. Agencies: Shwapno has contract with different agencies to import product.

Shwapno also provide them financial support and also help them to collect loans

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from financial institutions as they are “Z” category business organization. (Author,
2018) (Hasan, 2018)

3.5.2. Key Activities

a. Massive Product Line: Shwapno offer 30,000 categories product to

customer. It’s a challenge for them to maintain all the product lines. To manage
these products they have trained personnel in different branch. (Shwapno, 2018)

b. Festival Centric Product: Shwapno has offered various commodities in

different time. In Ramadan they offer many kinds of dates, drinkes etc. In Pohela
Boishak they provides big size of Hilsa fish which rare to local market in big city.
(Shwapno, 2018)

c. Promotion, Communication and activation: Shwapno has offered various

package commodity like Cash Discount Offer, Cross Categories Package Offer and
Similar Products Package Offer. By giving SMS they have informed new offer or
new product to customer. Shwapno provide some special gift to customer in special
day like in mother’s day gift a goody bag if the customer shopping a certain level.
(Shwapno, 2018)

d. Competitive Pricing: Shwapno tries to provide fresh and fault free product
to customer. To maintain that compliance, their MTP goes higher than the normal
groceries. Even after that, they try to keep a competitive price to satisfy customers.
(Shwapno, 2018)

e. Ensure 100% Valid Product: Shwapno tries to ensure provide 100% fault
free product to customer. They have huge number of product line, so it is not
possible to ensure every single product is fault free, but if any customer get faulty
product and identify by Shwapno then exchange this product. (Shwapno, 2018)
(Author, 2018)

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f. CSR – Angel Shape: Shwapno has introduced a confectionary namely angel

shape which is totally operated by autistic people. Apart from that, they participate
in various CSR activities all over the country. (Shwapno, 2018) (Author, 2018)

3.5.3. Key Resources

a. Loyal and Skilled Employees: Shwapno’s employees go through

continuous on job training which helps them become more skilled, they have an
efficient and motivated sale representative team which continuously work in
building relationship with customers. Besides that, they ensure to keep their
management team dedicated to work by giving them sufficient facilities. (Shwapno,
2018) (Author, 2018)

b. Modern IT Platform SAP – ERP: Shwapno uses modern software like

SAP and ERP that allows an organization to use a system of integrated applications
to manage the business and automate many back office functions related to
technology, services and human resources. (Shwapno, 2018) (Author, 2018)

c. Wide Range of Coverage: Shwapno offers wide range of product from

ration to cooking essentials and home appliances saving customers’ time from
travelling from one shop to another. Moreover, they have 81 outlets all around the
country which is enabling a wide range of customer coverage. (Shwapno, 2018)
(Author, 2018)

d. Very Strong Backward Linkage: Shwapno has a very strong backward

linkage with their suppliers. In a very less time, they can deliver products if
Shwapno ask for any urgent requirement. (Shwapno, 2018) (Author, 2018)

e. Becoming Strong PLB for Own Product: Recently Shwapno has started
their own PLB. When they will do the production in full scale, they can ensure
superior profit margin. (Shwapno, 2018) (Author, 2018)

3.5.4. Cost Structure

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Shwapno’s cost structure includes following types of costs

a. Operation Cost: This is the cost incurred for day to day activities of the
business. For example delivery charges, travelling expense, salaries, outlet operation
etc. (Shwapno, 2018) (Author, 2018)

b. Product Purchase Cost: This is the cost of purchasing inventory and

making them available for sales to customer. (Shwapno, 2018) (Author, 2018)

c. Fixed Asset Investment: Investment on assets that are purchased for long
term use. For example; warehouse construction, delivery van, fridges, air condition
etc. (Shwapno, 2018) (Author, 2018)

d. Expert Employee Cost: Cost of hiring employees with expertise

knowledge. For example; hiring an IT specialist for upgrading computer systems of
Shwapno, hiring a marketing specialist to get some expert knowledge regarding
marketing of a super store like Shwapno. (Shwapno, 2018) (Author, 2018)

3.5.5. Value Proposition

a. Convenience: For customer convenience Shwapno has bought wide

categories of product under one floor which is saving customers’ time from visiting
different shops for different categories of product. But they have scope to improve in
this aspect. (Shwapno, 2018) (Author, 2018)

b. Low Price in Regards to Quality: Shwapno ensures availability of quality

product at low price to its customers, thus ensuring value for money to customers.
(Shwapno, 2018) (Author, 2018)

c. Wide Range of Products: Shwapno offers wide range of products to its

customers thirty thousand stock keeping unit increasing customer choice. (Shwapno,
2018) (Author, 2018)
d. Reduce Customer Queue Through Good Number of POS: Shwapno has
deployed sufficient point of sales which reduces customer queue and saves
customers’ valuable time while making payments. (Shwapno, 2018) (Author, 2018)

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e. Online Business: Shwapno has recently started online business in Dhaka,

these types of businesses are becoming very popular in the country. (Shwapno,
2018) (Author, 2018)

3.5.6. Customer Relationship:

a. Loyalty Program: Shwapno sometimes give special discounts to its loyal

customers in order to maintain its loyal customer base. (Shwapno, 2018)

b. Surprise Offer: This includes discounts and offers that are given all of a
sudden in any particular day, customers are not informed beforehand via mobile
SMS in this case, they walk into a Shwapno outlet and see that there is special
discount or offer given on a particular item. (Shwapno, 2018)

c. Activation: On special days like mothers’ day, women’s day Shwapno gives
special offer like; if a customer purchases minimum ten thousand taka worth of
goods then they receive a gift bag which contains products for that special day. For
example on mothers’ day this goody bag will only contain goods that are for
mothers’ use. (Shwapno, 2018)

3.5.7. Channels

Shwapno does advertising through its two channels; traditional retailers and celebrities.

a. Traditional Retailers: Traditional retailers are general customers of

Shwapno. Advertisement through traditional retailers happens by word of mouth e.g.
telling positive things about Shwapno among friends and relatives. (Shwapno,
2018)

b. Celebrities: When celebrities shop from Shwapno, it is also one kind of

advertising through word of mouth. For example; Sakib Al Hasan does Shwapno, so
if someone asks him, from where he use to do daily shopping, he will say Shwapno.
This is one kind of word of mouth advertising. (Shwapno, 2018)

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c. TVC/ Billboard: They advert about their business through TV

Commercials, billboards in different locations. (Shwapno, 2018) (Author, 2018)

3.5.8. Customer Segments

a. Area Wise Catchment Analysis: The customer catchment area is the

geographical area from which a particular location draws its customer or prospects.
Shwapno’s outlets are located near residential areas in order to make households
their customer. (Shwapno, 2018)
b. Separate Store wise Product Assortment: As per the requirement of
customers, Shwapno sort different products for different outlets. For example sea
fish are available in Chittagong outlets and not Sylhet outlet. (Department, 2018)
c. In Store Product Segmentation for Local vs. Foreign Customers: There
are some products which are only preferred by foreigners and not local customers. In
Gulshan area of Dhaka city there are large number of foreigners so goods preferred
by foreigners are available in Gulshan outlet. Even they sort products as per their
country of origin to assist the customers’ plea. (Hasan, 2018)

3.5.9. Revenue Stream

a. Sales: The only revenue stream is the Sale of products in various form and
in various places. They sale third party product with profit margin and own products
from output of their production line. (Author, 2018)

b. Rent: In their outlets, they give space for rent to various vendors to sell their
products. For Example: in Shwapno Upashahar Branch, they gave space rent to
Rajmahal Sweets which give them a handsome amount of revenue. (Author, 2018)

c. Profit Sharing: For VMI products, they earn their revenue by profit sharing.
(Shwapno, 2018)

CHAPTER: 4 – FINDINGS AND RECOMMENDATIONS

4.1. Findings.
The issues we could find out after deliberate study on Shwapno Retail Chain Shop are

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a. Shwapno is the largest retail chain shop operating in Bangladesh in regards to Outlets (81),
SKU’s (30,000) and Revenue. They ensured wide range of coverage in regards to customer
and outlets. They are holding over 35% share of retail chain industry as on today. (1.1)

b. To deliver success Shwapno has a clear set of values & beliefs. (2.4)

c. Shwapno groups their outlets in three categories ie: Convenient, Super and Hyper Stores.
As per their categories till today, they are yet to lunch any Hyper Store. They have scope to
increase their outlets. (Appendix - D)

d. They have 6 outlets in Sylhet area. Amongst those, 4 are of Super Category and rest 2 of
Convenient Category. (Appendix - D)

e. According to Porter’s Five Forces model analysis, rivalry among established companies and
bargaining power of their customers is low, risk of entry by their potential competitors and
their bargaining power is moderate, but threat of substitute is high. (3.2)

f. To ensure quality, they have 4 layers of quality checking system. It also lead them towards
higher pricing in regards to general groceries which became a weakness for them. (3.3.1)

g. In regards to their large number of SKU’s, space of their outlets are limited. For that, to
facilitate customers, they have gone for geographical segmentation thus minimized the
number of SKU’s in their outlets. (3.4.2 (b), 3.5.8)

h. Due to some government policies, they are facing obstacle for changing over in modern
trading system. Lack of fostering by the government is not giving this industry to flourish.
Presently, contribution of this industry in economy of Bangladesh is only 1.5%. (3.4.4 (d))

i. Their marketing expenditure is going very high and it is not giving them prolific return on
their revenue. (3.5.1 (b &c))

j. They are very much dependent on their suppliers. They are becoming strong in own
production which may lead them to earn higher revenue. (3.4.2 (c))

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k. Customer’s mind-set is changing in present era as more number of people are involving
themselves in corporate world. To bringing this population under their banner, they can take
some innovative ideas by which customers will be benefitted and convenient. (3.4.3 (a))

l. In a very limited scale, the have started online shopping service in some of the areas of
Dhaka. (3.5.5 (e))

4.2. Recommendations.

There is no end of perfection. To become more perfect, on the findings, our recommendations are

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a. Marketing policy through ATL/BTL or mobile operator should be revised. Expenditure on

this aspect should be reduced as it is not giving expected output. (4.1 (i))

b. Self-dependency is a vital factor for this industry. Dependency on supplier should be

minimized by increasing their own product-line. A department can be developed to import
their required products. By this, they can ensure more profitability. (4.1 (j))

c. Convenient shopping place for mass people can increase customers in outlets which will
increase sells followed by profitability. In Sylhet, no shopping place give any mother to
shop freely. Moreover, no shopping place accommodate disable to shop. Simply, by
keeping a play zone with for children and 3-4 Caroline's Cart in all outlets will increase
their loyal customer base. (4.1 (k))

d. Online based shopping is very popular in this days. As already Shwapno is having the
platform of online shopping and Sylhet is having a very metropolitan area, with a limited
budget they can start online service in Sylhet. (4.1 (l))

YEAR BASED CALCULATION FOR IMPLEMENTING RECOMMENDATIONS

Recommendations Estimated Estimated Estimated Estimated Estimated
Expenditure Customer Revenue Profit Return
Base Period

Kids Zone (Sylhet) Tk 500,000 3,650 10,950,000 1,095,000 6 Months

(For Once)
Caroline’s Cart Tk 400,000 3,650 7,300,000 730,000 8 Months
(Sylhet) (For Once)
Introduction of Tk 2,000,000 18,250 18,250,000 1,825,000 1 years
Online Shopping (For Once) 6 Months
Service (Sylhet) Tk 200,000
(Yearly)

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