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An Analysis on Marketing Mix Strategy of Agora
Chapter 1 1.0 Introdu Introduction ction
1.1 Agora General Superstore Ltd Rahimafrooz Superstores Ltd. (RSL) launched Agora the first ever retail chain in Banglade 2001. Agora promises a valuale shopping e!perience that provides "ualit# and fresh produ the right price. $t aims to consistentl# provide a remar%al# satisf#ing and valuale shop e!perience through a usiness that improves the "ualit# of life for customers and team mem
&ach store of Agora is planned to have a total floor space of minimum '000 s"ft offering 20 variet variet# # of product productss coveri covering ng all essent essential ial commod commoditi ities es edile ediles s grocer groceries ies and oth household re"uirements including fresh produce fresh meat poultr# fish pac%ed and ca Sign up to vote on this title grocer# toiletries and all dail# necessities from 10 am till 10 pm. seven da#s a ee% throug Useful Not useful the #ear ($nternet 2). *he first store as opened on August 2+ 2001 at Rifles S"uare Ro ,hanmondi. *he second store as opened in -ulshan in April 2002 and third one has open
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1.2 Scope of the study *his *his report report covers covers the asic asic mar%et mar%eting ing strate strategie giess centra centrall to Agora5 Agora5ss e!iste e!istence nce ami competition from neer retail outlets. *he focus of this report ill e on draing the elem products price promotion and distriution together in anal#zing the comple! natu mar%eting that characterizes large4scale retail stores li%e Agora.
1.3 Obecti!es of the "eport *he main oective of the report is to find out the suppl# chain management s#stem of A 6ther oectives of this report are
*o %no the usiness process of Agora. *o %no the organizational structure of Agora. *o %no the product of their store hich its offering to the customers *o %no the mar%eting strateg# of Agora. *o %no the product promotion strateg# of Agora. *o %no the communication structure of Agora. *o %no their additional services of Agora. *o ma%e a recommendation for Agora.
1.#. Li$itation of the report% $n ever# research or% there e!ist some limitations that the researcher faces hile condu limita different activities. $n the process of the research or% 3e also come across certain Sign up to vote on this title that hampered the actual findings and anal#sis of m# research useful of these no Useful or%. NotSome limitations can e identified are
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Chapter 2 2.0 Conceptual issues 2.1. About Agora
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Sign up to vote on this title Bangladesh entered the 7supermar%et era8 on August 2+ 2001 ith Rahimafrooz Supers Useful introducing Not useful Ltd. launching Agora a retail chain superstore in Bangladesh a nea# to *he compan# has alread# opened four outlets 9 Rifles S"uare -ulshan Avenue aghaza
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2.2. Corporate Infor$ation *he Rahimafrooz ourne# dates ac% to the earl# fifties hen Late r. A : Adur R founded a small trading compan# and paved the a# for ma%ing of one of toda#>s lea Bangladeshi usiness conglomerates. 6ver the decades Rahimafrooz has gron in size s and diversit#. *he -roup toda# has seven 6perating :ompanies (SB?s) three other us ventures and a non4profit social enterprise. As of 200' the -roup currentl# emplo#s more to thousand people directl# and a further tent# thousand indirectl# as suppliers contra dealers and retailers. Rahimafrooz operates in three road segments automotive afterma poer and energ# and retail. Ranging from automotive after4mar%et products energ# and solutions to a orld class retail chain 9 the team at Rahimafrooz is committed to ensuring class "ualit# standards and living the -roup>s four core values 9 $ntegrit# &!cellence :ust ,elight and innovation.
2.3 Organi&ational Structure
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2.#. 'u$ber of branches ()ha*a + Chittagong,
RSL-HEAD OFFICE 05, Mohakhali (5th Floor), Paragon Bil!ing" Dhaka-#$#$
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I1DIRA ROAD Ro*=han= Do-inno R+li+>o, $; In!ira Roa!, Fargat+, Dhaka-#$0:
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PALLABI (MIRP%R-#$) up to vote on this titleDhaka Rang!hn Col+, Plot-#557#56, Pallai,Sign S+tion-#$, Mirr, Useful Not useful
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2.- Obecti!es of Agora Agora has some oectives that ever# emplo#ee is ound to given their customers. *hes given elo4
*o offer clean health# and a friendl# environment to customers for shopping. *o give customers confidence and estalish and environment of trust. &ncourage producers to produce standard @ "ualit# products for etter prices. &nsure consistenc# of variet# and supplies of products. $mprove product pac%aging @ presentation :ontriute to the ell4eing of the people in the process
2./lan of Agora *here is some plan of Agora that ants to en"uire in near future. *his are given elo 4
&stalish a chain supermar%et. &ach supermar%et ill have at least '000 s". ft. in a single shop. *he supermar%et ill have ade"uate par%ing space. *he supermar%ets ill carr# ide Reading variet# of "ualit# assured product onl#. You're a Preview ,evelop @ promote local products. Unlock full access with a free trial.
Download With Free Trial 2. he Co$petitors of Agora in the ar*et
*he ain competitor of Agora according to the ar%eting anager is the 7acha Bazaa evertheless hen pressed on the other competitors the management as considered as Bazaar @ Shopno Sign up to vote on this title
2. arget ar*et
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A target mar%et consists of a set of u#ers sharing common needs or characteristics that
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2.8.1 Economic Status
A person5s economic situation ill effect on product choice. erson can consider u#ing e!pensive product if heCshe has enough spendale income savings or orroing poer (o et all 200+ p. 1<<). Agora primaril# targets the folloing classes their customers. *he# are
iddle :lass Eigher4iddle :lass
to the local mar%ets although ringing in the older generation is tough due to their proclivit# toard local mar%et shopping that have een practiced # them. Ee points out that in a s here #ou don5t have to haggle over price the shopping e!perience ecomes less adventu hich is something the older generations are unilling to relate to. You're Reading a Preview
iddle :lass
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*he iddle class is made up of average4pa# and Trial lue4collar or%ers ho line on 7 Download hite With Free etter side of to and tr# to do the proper things. *he %eep up ith the trends the# often products that are popular. ost are concerned ith fashion see%ing the etter rand nam etter living means oning a nice home in a nice neighorhood ith good school (otler et 200+ p.l <+). Sign up to vote on this title
Eigher4iddle :lass
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Eigher middles possess neither famil# status nor unusual ealth. *he# have attained positi
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longer special case. *he prospects felt that elite ould come ith it on general elief that ant "ualit# at a reasonale price. 2.8.2 Education
*he other reason ehind choosing the middle and higher4middle class is that the# are usu the more educated among all the other classes ensure taste and choice according to management. 2.8.3 Age
:onsumer needs and ants change ith age (otleret all 200+ p.2+1). Agora uses age and c#cle segmentation offering different products. Surprisingl# the generation factor seems to affecting the plans of Agora in a positive a#. According to the mar%eting manager #o people are more at home shopping at Agora rather than going
2.4 Interior of Agora
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Chapter 3 3.0 ethodology of the "eport
3.1 )ata Collection echni5ue%
Observation: $ have visited roarta% :ircle ranches of Agora that time $ m oserved their products products prices their shop>s environment as ell as product prices.
Secondary information: Secondar# information has collected # re esites ournals rochures and some other relevant documents
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Chapter # #.0 6indings of the study
#.1. Supply chain strategy of Agora Eere e ill mainl# discuss the distriution process of Agora>s product to their custo Actuall# Agora doesn>t produce an# product. *he# u# their product from local mar%et *he# Refine their product for their customer. *hen the# store their product at their sho r Reading a Preview *hen the# rearrange their product You're under their hole ranches. *hen the# sell their produ their customer. *heir main motive isUnlock G8e full ill access#our with aproduct8 free trial. Download With Free Trial
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#.2. ar*eting $i7 Strategy *he proect5s strategic aim to source in ul% "uantities from the producers or manufactur products there# reducing distriution la#ers. *raditionall# such practice rings organization ithin the industr# and essential commodities ediles and groceries account fo significant portion of the food industr#4hich in turn is the largest contriutor to the retailing industr# (estalishment of the chain of supermar%et ould have a significant impa the entire retailing industr# in Bangladesh. You're Reading a Preview
Agora eing a retail service store does not sell its on products. So its mar%eting strateg# r Unlock full access with a free trial. ver# heavil# upon the products that the store %eeps for the prospective customers the pr hich the# provide those products and the manner in hich Download With Free Trial the products reach the custom the store. *heir aim is to offer an e!tensive selection of rands and materials providing choi different sizes at different prices. *he mar%eting strateg# emplo#ed # the stores is focus the folloingD
roduct rice romotion ,istriution
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on4 perishale (includes canned4 house4 hold goods li%e personal care products and items). harmaceutical products
Perishables *he fresh fruits and vegetale are local products from local farms.
Frozen meat and dair# products are among the fast moving products. Flour pulses and staple foods are pac%ed graded and laeled # local suppliers an idea given to them # A *he idea is to proect the image of convenience to the shoppers. You're Reading a Preview *he international rand in the frozen meat and fish products pizzas cheese utter and full access withmoving a free trial.as the# cater to the varied tast meat fish or dail# goods. *he# areUnlock relativel# fast4 are of relativel# high standards. $t has to e noted that although some foreign consumer Download With Free Trial in the store the suggestions suggested that por% and alcoholic drin%s e made availale dropped to %eep in line ith the larger cultural concept.
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:anned and ottled items li%e fruits and fruit uices are mostl# imported from Australia general idea that these products are good value for mone# accounts largel# for the prominen these rands. Brands are preferred oing to image value.
$tems such as soft drin%s and snac%s are availale at different prices and varieties although to e noted that most of them are common rands availale almost ever#here e!cept for a especiall# imported # Agora.
,ail# rea%fast needs are among the fastest4moving items in the store hich include coffee mil% cereals and chocolate items. &!cept for mil% and tea rands the rest is dominate foreign rands. :hocolate rands are comparativel# diverse. Non-Perishables
*hese items include personal h#giene products and household utensils. *he# ta%e up onl# 20H of all the goods availale. Eousehold cleaners and insecticides comprise of oth loca international rands. Soaps Shampoos ,ishashing li"uids and ,etergents are availale i personal h#giene products section dominated # ?$L&I&R an estalished rands pref Preview as the# have a general acceptailit#You're in theReading mar%et aand usuall# have a high turnover. *his Agora maintain a high sales volume. ?tilities such as disposale %nives for%s Unlock full access with a free trial. aluminum foils and rappers are availale in small "uantities (understandal# aiting demand to e created) Download With Free Trial .
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:osmetics and deodorants are availale providing a reasonale amount of variet#. e pro and innovations # local farmers are encouraged # Agora. $t itself ta%es the responsiil mar%eting these special products in their stores. *he idea is to represent Agora as the spons local innovations and in turn enefit from the profit made though such sales. $t also gives an edge over most competitors # eing the first to introduce them. B# the # the mar% manager said that presentl# ide acceptance of 7*&& R &,$BL& 6$L8 is result of their contriution Pharmaceutical Products
*he pharmaceutical section is similar to a small pharmac#. *he medicines availale ar special in that the# are the usual drugs availale in other small pharmacies in the cit#. *he# pharmaceutical products as it same price as other medicine shop.
Quality ontrol
*heir "ualit# control is ver# high. According to the manager the stringent "ualit# ensures th You're Reading a Preview products are update on a routine asis so that the e!pir# date is not e!ceeded. roducts oug Unlock full access a free trial. and not sold are either returned to the suppliers orwith discarded.
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#.2.2/ricing% $n setting prices the# Agora follo a comination of cost ased pricing value asedpricing Sign up to vote on this title competitors ased prices. $n case of most non4perishale product (such as soap saving cream Useful Not useful And poder shampoo etc.) the follo competitors ased price. in case of perishale good th follo value ased pricing.
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$n the perishale items sector the fresh fruits vegetale eef and fish are priced higher than elsehere. *he e!ecutive e!plained this case # relating e!tra price to the 7solid8 eight tha provided # the store and the e!tra effort that goes in to clean the vegetale and meat from t hole unch. You're Reading a Preview
Unlockproducts full access with a free $n this case $ tried to find Agora5s actual price list.trial. But refused to sho it as a it5s v confidential issue to them. So here $5m giving their outlet as secondar# data. Download With Free Trial #.2.3 /ro$otion anagement needs to inform and persuade the mar%et regarding a compan#5s products (Stan et all 1;;1 p. 1=). *he ideal in a retail store is to stri%e a alance eteen hat %inds of products are fast selling and profitale. An important first step in the usiness esides upgra is its image. *he challenge lies in convincing customers that areon affordale Signprices up to vote this title and that th "ualit# is value of mone#. Useful Not useful
*he promotional mi! emplo#ed # Agora primaril# focuses on the folloing methodsD
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6verall Agora5s advertising concentrates upon the nes media rather than electronic media. reason given is that at the moment Agora has onl# to outlets so giving advertisements in th electronic media ould e inappropriate. o4agora e! penses 0.;1 H of net sales for advertising.
!he Ne"s Media
A surve# as conducted to find out first hich nespapers ere most circulated in the ,hanmondi and near# areas. *he &nglish language dail# >*he ,ail# Star5 and the Bengali >*he ,ail# Kugantor5 @ >ratham Alo5 came out the top of the list Ads ere given out in thes papers hich the manager e!pected ould reach the target mar%et more efficientl# in comparison ith e!pensive and no specific electronic media.
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SourseD httpDCCepaper.prothom4alo.comCvieCdha%aC201/40<42
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Sales Promotion
Sales romotion is a short4term incentive to encourage the purchase of sale or a product or service (?llha et all 2001 p.+<;). 3ithout sales promotion compan# might never have mad a Preview that purchase or might have ought You're anotherReading rand (Bennett et all 1;<< p./2+). Agora empl ide range of sales4promotion methods. mainwith methods includeD Unlock*he full access a free trial.
,iscounts Raffle ,ras
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Special shelves are placed at the forefront and are reserved for an# compan# anting to pro their products. $n e!changes Agora is paid a special rent # the prospective companies other trade promotions # suppliers include leaflets and small posters.
ross Promotion
As Agora is a relativel# ne venture need as felt to associate estalished firms ith it as a promotional strateg#. ?ze%istan Aira#s and Fantas# ingdome ere involved ith Agora promoting the rand through sales or advertising. Besides these the# ma%e an agreement i standard chartered Ban% for interchanging 7ride customer8 You're Reading a Preview*he# provide special service fo ride customer. Unlock full access with a free trial.
6verall the most important and effective promotion of Agora has een through mouth4to4mo Download With Free Trial communication of friends and relatives. *his has ought in a lot of customers for the firm.
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6pening a ne ranch of Agora
*he picture shos the launching ceremon# of AgoraJs :hittagong outlet. Rahimafrooz Superstores is the managing authorit# of Agora. hotoD Agora (httpDCC.thedail#star.netCnes4detail41+01;+) You're Reading a Preview
#.2.# /lace8)istribution Unlock full access with a free trial. *he "ualit# of products is not ala#s enough as customers have to e convinced that the# value for mone#. anagement5s responsiilit# is to Free selectTrial and manage the trade channels thr Download With hich the products ill reach the right mar%et at the right time and develop a distriution s# for ph#sicall# handling and transporting the products through these channels (Stanton e 1;;1 pi =). *he folloing convenience Agora tries provide facilitate this processD
*he location factor *he shop la#out Lighting and Amience
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*he first ranch of the super4 mar%et is at the Rifles S"uare at ,hanmondi. *his area is un as it is on of the usiest and ell4connected areas region. *he second ranch of the super has een opened at -ulshan. $t is as ell connected as the ,hanmondi ranch. *he third of super store has een opened at ohgazar. $t is a more populated area ar%ing facil roughl# as good although a fe aspects of the ,hanmondi ranch had to e sacrific accommodate the asic re"uirements.
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A ver# uni"ue Sign up to vote on this titlefeature ,hanmondi ranch is that it also has a %id5s pla# area. tv is Useful useful room enou aNotsmall accommodate a good numer of small children. A female m careta%er is %ept to ta%e care o children in the area. *his is another strateg# to ensure that the or%ing parents can spen
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You're Reading a Preview Unlock full access with a free trial.
%ighting and Ambience
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As shoppers loo% for etter values Agora has added several services to roaden the apple including air4conditioning child5s pla# area and ac%ground music.
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Chapter -.0 "eco$$endation and Conclusion
-.1 "eco$$endation for the Agora 3ith single stores in :hittagong Agora is a leader in superstore retail organizatio comination of "ualit# and price under various rand name offers customers value for mone#. $ have e!amined and evaluated the operations of Agora Ltd including its strength ea%nesses. $ recommend the folloing in order to ensure continued success for the future ar%s and Spencer storesD
Agora is still not eing ale to accommodate enough customers. *his is a general vie the customers surve#ed over half suggesting an increase. ?nless this prolem is solv "uic%l# the competitors of the store ma# ta%e aa# those 7unsatisfied8 customers fro Agora. *he costs of most perishales are ver# high compared to the general trend of the mar o matter ho the mar%eting manager tries to e!plain their reasons ehind this high the customers ould invarial# tend to shift lo the sources that provide them at a less price if the# do not feel that the price the# are pa#ing is orth the convenience. *he numer of staff at the store should e increased ecause the customer feels that t You're Reading a Preview spend more time to pa# their shopping. *his ma# e a source of more convenient of Unlock full access with a free trial. customer. Find alternative sources to suppl# resources to ar%s and Spencer stores aroad. Download Free Trial can u# their products setting *he# should increase mar%eting efforts With so that people home $ thin% the# should strengthen e!isting resources add complementar# resources and develop ne resources. *he# should ma%e &valuation of :urrent 6ectives and :urrent Strateg#. Sign up to vote on this title
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-.3. Conclusion Agora Ltd. is an enterprise that comines industr# and trade mainl# engages in retailin "ualit# products at the most loest price in the mar%et. *he management of Agora enthusiastic advocate of trading stamps as an inducement for shoppers to patronize their st *he# signed up ith all t#pes of "ualit# products manufacturer and ecame one compan#>s largest clients. But the management as a fan of pile it high and sell it cheap a the mid42000 Agora faced man# cost prolems associated ith not properl# integratin purchased chains of stores. 3hen the firm overstretched itself opening fe more throughout the cit# management consultants ere called in to sort out the mess. $n 2001 A launched 6peration :hec%out an across the oard price cutting campaign aimed at count the threat from the ne reed of discounters such as i% Save. Facing the orld and loo e#ond Agora ill ala#s maintain the pure4hearted enterprising "ualit# and struggling ma%e efforts to scrupulousl# aide # our goodill create splendid future together ith # management vision of oint development oint prosperit# and mutual enefits
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