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Aarong

The internship report focuses on the marketing strategies of Aarong, a prominent fair-trade organization in Bangladesh that empowers rural artisans, particularly women. It outlines Aarong's marketing strategies, including product, pricing, distribution, and promotional tactics, while also discussing the company's history and objectives. The report aims to analyze and provide insights into Aarong's approach to creating customer value and maintaining its position in the fashion industry.

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0% found this document useful (0 votes)
99 views63 pages

Aarong

The internship report focuses on the marketing strategies of Aarong, a prominent fair-trade organization in Bangladesh that empowers rural artisans, particularly women. It outlines Aarong's marketing strategies, including product, pricing, distribution, and promotional tactics, while also discussing the company's history and objectives. The report aims to analyze and provide insights into Aarong's approach to creating customer value and maintaining its position in the fashion industry.

Uploaded by

mahamudomi8
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Internship Report

On
“Marketing Strategies of Aarong in Bangladesh”

Supervised By
Mahathy Hasan Jewel
Associate Professor
BBA Program
Department of Marketing
Faculty of Business Studies
Jagannath University, Dhaka

Submitted By
Md. Foysal Mhamood Khan Omey
ID: B190204077
Batch: 14th
Department of Marketing
Faculty of Business Studies
Jagannath University, Dhaka

JAGANNATH UNIVERSITY
Date of Submission: 11 May, 2025

i
LETTER OF TRANSMITTAL

Date: 11 May, 2025


To
The Supervisor
Mahathy Hasan Jewel
Associate Professor
Department of Marketing
Jagannath University
Subject: Submission of Internship Report on “Marketing Strategies of Aarong in
Bangladesh”.

Sir,

With due gratefulness and admiration, I’m submitting my internship report on “Marketing
Strategies of Aarong in Bangladesh”. As per partial accomplishment of the requirements for
the degree BBA program, I have completed the internship from Aarong in Bangladesh. It is
my pleasure to carry out the internship report under your supervision.

As a requirement of preparing an internship report based on the practical situation in an


organization, I selected Marketing as my core concentration along with few other Marketing
Strategies that I have come across during my internship program. So I have prepared a report
on the “Marketing Strategies of Aarong in Bangladesh.” I hope this report reflects on the
company’s marketing strategies that are being practiced in our country.

I would like to request you to accept my internship report for further assessment.

Sincerely yours,

.......................................................

Md. Foysal Mhamood Khan Omey


ID: B190204077
Batch: 14th
Department of Marketing
Faculty of Business Studies
Jagannath University, Dhaka

ii
STUDENT DECLARATION

I hereby declare that the internship report on “Marketing Strategies of Aarong in Bangladesh”
is uniquely prepared by me and has not been previously submitted to any other organization
for an academic qualification.

I also confirm that, this report is only prepared for my academic requirement, not for any
other purpose.

.......................................................

Md. Foysal Mhamood Khan Omey


ID: B190204077
Batch: 14th
Department of Marketing
Faculty of Business Studies
Jagannath University, Dhaka

iii
AUTHORIZATION

I clarify that the internship report entitled “Marketing Strategies of Aarong in Bangladesh”
submitted by Md. Foysal Mhamood Khan Omey, ID: B190204077, 14th Batch, Department
of Marketing, Jagannath University, Dhaka in the partial fulfillment for the requirements of
the degree of BBA Program Department of Marketing, Jagannath University.

The report has been prepared under my guidance and I wish his all success in future
endeavors.

Supervisor,

....................................

Mahathy Hasan Jewel

Associate Professor

Department of Marketing

Faculty of Business Studies

Jagannath University, Dhaka

iv
EXECUTIVE SUMMARY

Among is a fair-trade organization which is dedicated to make positive changes in the lives of
“Disadvantaged artisans” and “underprivileged rural women”. It does so by reviving and
promoting their skills and craft. It is first social enterprise of BRAC and was established in
1978 by late Fazle Hasan Abed, the founder of BRAC. Their designs of the products have
brought consumer attention back to the products and styles that are native to Bangladesh. The
design focus on the varied types textures of crafts and patterns that have been passed along
from generation to generation among weavers and artisans in craft hubs around the country. It
aims to position Bangladesh’s handicraft on a word wide platform. I tried out to cover all the
business operation process of Aarong such as situation analysis.

Aarong is one of the most renowned fashion enterprises in our country. This report has covered
almost all the strategies of Aarong for marketing its product. It also includes a brief profile of the
enterprise. To know the strategy of the enterprise it also includes the product categories and the
distribution channel of the enterprise. The objective of this report is to identify and analyze marketing
strategies of Aarong. The data has been collected through oral conversation. The limitations to get the
proper information were Time barriers, Intension to not disclose the information, Rules and regulation
etc. The vision of the company is to remain as the benchmark in the fashion industry. The main
product sources of Aarong is-AAF (Ayesha Abed Foundation) and The Independent producers.
Aarong produces more than 100 product line. All these products are highly fashionable.

Aarong is the way to introduce once products to the targeted customer. Aarong should have clear idea
and understanding about the marketplace and customer needs and wants, then they need to design a
customer driven marketing strategy, after that they should build an integrated marketing program that
delivers superior value. The process of developing and maintaining a strategic fit between the
organization’s goals and capabilities and its changing marketing opportunities is called Strategic
Planning of Aarong.

Aarong should have a customer-driven marketing strategy to fulfill its target. Aarong should select
customers to serve at the first step make smaller segments to identify suitable customers and then
company should target those customers to serve their products.

Aarong decide on a value proposition by differentiation and positioning. This will help the company
to identify the offerings that will help to create superior customer value and by creating superior
customer value company can make the ultimate position on the minds of targeted customers.

v
Aarong successful marketer is to do these simple four steps of segmenting, targeting, differentiation
and positioning. If could do these things successfully these will help to create value for targeted
customers and make the customer-driven marketing strategy successful.

In marketing strategy we have identified different positioning, market offerings, branding and
communication strategy of Aarong. Next comes the financial part where we have part covered all the
pricing strategy of Aarong which the apply before making a new product and then comes the
implementation control part which starts form performance management and ends with contingency
plan where we have mentioned all the future barriers of Aarong and how the encounter the situation,

For understanding the marketing strategy, I selected the company who is promoting the brand
AARONG. This is a well-known and a famous brand of Bangladesh. I will try to provide information
about strategies that Aarong uses for making its products and services to create customer value among
general public.

vi
TABLE OF CONTENTS

CHAPTER TOPICS PAGE #

Letter of Transmittal 02

Student Declaration 03

Authorization 04

Executive Summary 05-06

INTRODUCTION
1.0 Introduction 11

1.1 Objective 11-12

Chapter 01 1.2 Methodology 12-13

1.3 Scope 13

1.4 Limitation of the report 13

COMPANY PROFILE
2.0 History of Aarong 15

2.1 Background 15-16

2.2 History 16-17

Chapter 02 2.3 Logo History 17

2.4 Organizational Analysis of Aarong 18

2.5 Products of Aarong 19-23

2.6 Vision, Mission & Values 24

MARKETING STRATEGY OF AARONG IN BANGLADESH


Chapter 03 3.1 Organogram of Marketing Department 26-28

3.2 The product marketing strategies of Aarong in


28-29
Bangladesh

3.3 Production flow 30-31

3.4 Services 32

vii
3.5 Key product lines of Aarong 33

3.6 The Target Customers of Aarong 34

3.7 Aarong’s Domestic Market 34-35

3.8 Market Pricing strategies of Aarong 36

3.9 Budget Information 37-40

3.10 Market Distribution strategies of Aarong 41-44

3.11 Promotion Strategy 45-47

3.12 The market segmentation strategies of Aarong 48-51

3.13 The positioning marketing strategies of Aarong 51-52

3.14 Competitor Analysis 53-55

FINDINGS
4.0 SWOT analysis of Aarong 57

4.1 Strength 58

4.2 Weakness 58-59


Chapter 04
4.3 Opportunities 59

4.4 Threats 60

4.5.Findings 61-62

RECOMMENDATION & CONCLUSIONS


5.0 Recommendations 64
Chapter 05
5.1 Conclusions 65

References 67

viii
LIST OF TABLES

TOPICS PAGE #
Table1.1 Profile of the Aarong 18

Table 1.2: Organogram of Marketing Department 26

Table 1.3: Product marketing strategies of Aarong 28-29

Table 1.4: The outlets of Aarong 35

Table 1.5: The time requirement 36

Table1.6: Budget Information 37

LIST OF GRAPHS

TOPICS PAGE #
Figure: 1.1: Production flow 30

Figure 1.2: Product line 33

Figure 1.3: Itemize annual sales of product 33

Figure 1.5:Aarong’s product Range 36

Figure 1.4: Purchase Percentage 35

Figure1.6: Price for different 37

Figure1.7: Size chart 38

Figure1.8: Men’s Price & Size Range 38-39

Figure1.9: Women’s Price & Size Range 39-40

Figure.1.11: Online Marketing 47

Figure: 1.12 :( Target market share) 50

ix
CHAPTER-1
INTRODUCTION

1
1.1 Introduction
The word Aarong means ‘village fair’ and the Aarong brand is meant to invoke deeper connection to
its rural roots. Burnout of a humble resolve to empower the marginalized rural women and enable
them to realize their full potential, Aarong is one of the 18 social enterprises of BRAC – the world’s
largest development organization. It has been working towards BRAC’s mission of poverty
alleviation through economic development and human capacity building, with a specific focus on
them powerment of women. Aarong was initiated in 1978 as a project to ensure poor silk farmers,
block printers and embroiders in Manikganj in central Bangladesh were paid upon delivery of their
products.

The purpose was to provide a platform for rural artisans where they could sell their products and get a
fair market price. Starting its journey with providing employment for a limited number of rural
women, Aarong rapidly extended its support by working with many other artisan and crafts.

1.2 Objective
The reason for this report will be to depict my seeing of the worth of effort carried and background
assembled throughout the whole period of the internship project. It means to figure out how powerful
this taking in experience which is required to get ready a singular assistant to the heightening tests the
individuals are regarding will develop in the genuine living corporate universe. Therefore, this report
will reflect the generally learning and furthermore understanding assembled throughout the internship
period.

The fundamental target of this report is to describe and discuss the recruitment and selection process
of Aarong. The report concentrates and illustrates the organization’s recruitment strategies which
more provides an acceptable picture of the entire procedure. This report also plans on examine the
findings and recommendations in distinctive parts for examination.

General Objective

To find out the marketing strategies of Aarong in Bangladesh.

Specific Objective

1. To find out about the product marketing strategies of Aarong in Bangladesh.


2. To find out about the pricing marketing strategies of Aarong in Bangladesh.
3. To find out about the distribution marketing strategies of Aarong in Bangladesh.

2
4. To find out about the promotional marketing strategies of Aarong in Bangladesh.
5. To find out about the segmentation marketing strategies of Aarong in Bangladesh.
6. To find out about the target marketing strategies of Aarong in Bangladesh.
7. To find out about the positioning marketing strategies of Aarong in Bangladesh.

1.3 Methodology
The study is descriptive in nature. Data and information required for this study will be collected from
both primary and secondary sources. Secondary data will be collected from the organization directly
or through websites, reports, document from text books.

Area of the Study

My report is on Market Strategies of Aarong in Bangladesh. In order to carry out the research
work, I have prepared this report based on my practical experience & direct observation.

Sources of Data/Information

I have collected my data/information from the following sources, which helped me to make
this report. The source has divided by two parts. Such as:

a) Sources of Primary data &


b) Sources of Secondary data.

a) Sources of Primary data: The data has been collected through-


 Takes experts opinion from the Aarong’s Officials’

b) Sources of Secondary data:

 Journals, Brochures, Annual Reports, Papers, Magazines, Publications, Books &


Other form of publications in the websites of Aarong.
 Training materials of Aarong.
 Other published papers, documents & reports.

3
1.4 Scope
This report keeps tabs on the examination about recruitment and selection process of the overall
departments of “Aarong”. Moreover, the report is ready to the seeing what's more concerning of the
organization’s secrecy. So, at whatever data association supposes not suitable should be held outside
also not gave here.

1.5 Limitation of the Report


The written report lacks to provide the proper account of all the aspects of recruitment physical
cognitive operation in “Aarong”. “Aarong” follows different recruitment and pick process which
depends on the organization’s required position. Each and every recruitment and selection process of
various positions is not explained in this report in Order to keep it precise. To prepare this report there
have to be faced some restraints.

4
CHAPTER-2
COMPANY PROFILE

5
2.1 History of Aarong
Aarong, an ethical brand of our country operating under BRAC, started its journey in 1978. From the
beginning of its journey, this lifestyle retail chain is acting as a means to empower rural artisans
specially women. In 39 years, a small retail chain turns out to be a giant lifestyle brand of Bangladesh
with 18 stores throughout the country covering all the major cities like Dhaka, Chittagong, Sylhet,
Comilla, Narayangonj etc.

Aarong strictly maintains fair trade policy to support its 65000 artisans. Other than their contribution,
it would not be possible to maintain over 100 fashion and lifestyle product lines. Its products ranged
from clothing, toys, household items, gifts, fashion accessories, ethnic wear and many more. From a
single shop, Aarong had become country’s leading fashion and lifestyle brand; a “must shop” store
according to Bella’s review in tripadvisor.com.

2.2 Background
Shameran, and young daughter, Tamara Abed says, “Aarong has made a continuous effort in linking
crafts to fashion and to the market, both at home and abroad.” (Wee, 2015, p. 04) Designer brand like
MARKETING STRATEGIES is clearly a successful footprint in the world of fashion. In 1976,
Ayesha Abed, the wife of Sir Fazle Hassan Abed, initiated many activities after identifying and
experimenting various kinds of crafts that women could produce at home such as nakshi kantha,
baskets and embroidery goods, items made of cane, jute and bamboo. However, there were two main
obstacles behind this step. One was maintaining good quality and the other was proper marketing. To
overcome those obstacles, in 1978, BRAC entered into a joint venture with the Mennonite Central
Committee, the international development arm of Mennonite Church. They agreed to open a shop in
Dhaka named Aarong- meaning ‘Village Fair’. The Mennonites had experience of handicraft
production for income generation and had established a program, “Ten Thousand Villages” that
worked with artisan groups around the world and sold their products through catalogues and retail
shops in the United States and Canada. In the very first year, Mennonites assisted with the marketing
part and BRAC worked to develop the skills of its artisans. This journey found a new shape in the
early 80’s. Then they started to visit museums and elderly craftsman to collect motifs of traditional art
forms and catalogue the designs. In 1982, the Ayesha Abed Foundation (AAF) was established by
family and friends to commemorate the memory and work of the late Ayesha Abed Tamara. AAF's
first project, the Manikganj center, was opened on 3rd September 1983. The foundation buys
handicrafts made by the village women, other NGOs and handicraft producers. In addition to starting
the AAF, Aarong opened four retail outlets and began exporting a small percentage of goods to fair-
trade organizations during the 1980s. By the mid to late 1980s Aarong began to emerge as a fashion
brand despite the fact that Bangladesh was still new to the fashion industry. Aarong was the first

6
brand to start organizing photo shoots along with fashion shows, exhibitions and other forms of
media-focused events. Through these groundbreaking marketing initiatives, Aarong was able to
expand its popularity and brand identity within the country by the early 1990s.

However, from 2000 the business began to suffer from poor inventory control and a lack of
innovation, brand development and strong management. From 2001 to 2004, the company was
restructured to tackle issues in costing, pricing, design and marketing. In 2004 a new management
team came in action under the supervision of Tamara Abed, Aarong achieved sales of almost US$14
million in 2004, compared to US$1.07 million in 2000. It earned a profit of US$1.96 million for
BRAC, which was distributed amongst its agriculture, education and health 4 programs, with the bulk
of the funds going to a program for the very poor. By 2013, sales had crossed the US$50 million
mark. (Wee, 2015)

2.3 History
A fresh new take on designer wear for the modern woman. Each line of the new collection was on
display in the finest form (Hossain, 2017)

1982 - Ayesha Abed Foundation was established.

1983 - A retail outlet in Chittagong was opened.

1985 - A retail outlet in Sylhet was opened.

1987 - Aarong entered into the export market.

1995 - A retail outlet in Khulna was opened.

1999 - Participated in its first international fashion show.

2001 - A retail franchise in London, United Kingdom was launched.

2003 - ‘Taaga’, women’s western fusion wear of Aarong was launched.

2008 - Celebrated its 30thanniversary with an exhibition series and fashion gala.

2011 - Aarongs flagship outlet in Uttara was opened.

2012 - A retail outlet in Comilla was opened.

2013 - Artisan Development Initiative, a BRAC holistic development program begins.

2014 - A retail outlet at Jamuna Future Park is opened and website of Aarong was launched.

2015 - Retailed outlets are opened in Dhanmondi-2 and Banani 11

2.4 Logo History

7
At visit a town reasonable there need aid parts from claiming inventive also unprecedented things we
Figure around the town reasonable. So, Aarong made itself as a town reasonable the place you figure
out 110 item accordance with creative, direct and popular representation. Eventually Tom's perusing
its result What's more administration Aarong’s logo built likewise a solid mark in the national benefits
of the business market and additionally worldwide market. That logo from claiming Aarong is a
picture for peacock. It may be fantastically delightful due to that brilliant, iridescent, differentiated
bright design done its tail. The shade of the peacock in the logo may be orange on account it speaks to
vitality. By this logo Aarong communicates that its items need aid similarly as staggering What's
more concerning illustration exceptional similarly as a peacock. Additionally, it needs with
underscore its natural, eco-friendly items through the image. (Aarong, 2015)

2.5 Organizational Analysis of Aarong


These values reflect fair trade principles which have been developed by registered Fair Trade
Organizations. It contributes to sustainable development by offering better trading conditions to, and
securing the rights of, marginalized producers and workers in Bangladesh.

2.6 Profile of the Aarong

8
NAME OF ORGANISATION AARONG BANGLADESH

Years of Establishment 1978

Head office 346, Tejgaon Industrial Area, Dhaka-1208

Nature of the organization Public Limited Company

 Men’s Product,
 Women’s Product,
Product and Services
 Children Products,
 Leather Product

Number of Branches 11

Total Producer 500+

Customer All age group customer

Slogan “AKEBrittaBanglarMouk”

Working Manpower 65000

Table1-1: (Profile of the Aarong)

2.7 Products of Aarong


As Aarong is a leading fashion house in Bangladesh it was started its journey in need of helping the
disadvantaged, poor silk farmers of Manikganj, but soon enough Aarong started to grow and
expanded throughout the whole country, from one single shop to the biggest retail chains of
Bangladesh. Since 1984 this organization has also entered export market. The product lines ofAarong
have also grown up with the growth of the organization. At this time Aarong have more than 100
product lines. The products of Aarong are as follows:

 Men’s Products

 Traditional

9
 Executive Shirts

 Maanja

 Fotua

 Short Kurta

 T-shirts

 Stoles/Shawls

 Sandals

Women’s Products

• Traditional

• Western

• Nightwear

• Shawls/Scarves

• Shoes

• Bags

• Fabrics

Children Products

 Clothes

 Toys

 Books

 Shoes

Home Textile Products

• Bed

• Table

• Living

• Kitchen

• Kids

• rugs

10
• Fabrics

Home Accessories

• Bed

• Table

• Living

• Kitchen

• Lamps

Jewelry Products

• Gold

• Silver

• Pearl

• Other

Leather Products

• Shoes

• Bags/wallets

• Belts

• Boxes

• Photo Frames

• Office

Terracotta Products

 Decorative

11
 Dining

 Lamps

 Plant Accessories

Bamboo/Leaf Products

• Living

• Dining

Metal Products

• Decorative

• Living

• Lamps

Candles

• Pillar

• Floating

• Decorative

• Seasonal

Jute Products

 Decorative

 Personal Accessories

Wood Products

 Decorative

 Living

 Table

Glass Products

 Table

12
Nakshi Kantha Products

 Decorative

 Fashion

 Table

 Personal Accessories

 Decorative

 Fashion

 Bed

Food Products

 Herbal Products

2.8 Vision, Mission & Values

13
Vision: Our current reality spare starting with the greater part manifestations of abuse and separation
the place everybody needs the chance will acknowledge their possibility.

Mission: Mission will be with enable individuals and groups to particular circumstances from
claiming poverty, illiteracy, sickness and social unfairness. Aarong’s intercessions point will
accomplish substantial scale; certain progressions through financial Furthermore social projects that
empower men and ladies with understand their possibility.

Values: Values would those same as the individuals about BRAC – an association that indicated
those reality uncommon Advance with its comprehensive methodology on improvement. For over
325,000 people the nation over benefitting starting with Aarong’s initiatives, these qualities stay a
consistent sourball for pride and impulse for you. (Aarong, 2015)

14
CHAPTER-3
MARKETING STRATEGY OF AARONG

3.1 Organogram of Marketing Department

Director of Aarong, AAF & BDFP


15
Table-1.2: (Organogram of Marketing Department)

3.1.1 Updating customer database


Aarong Reward Customer commonly known as MARC is a special type of scheme to acknowledge
loyal customers. The main objective is to strengthen the relationship with the customers and to
encourage them re-purchase from Aarong. This scheme also helps to provide insights about customers
spending, buying behavior etc. (Smith, 2016) Types of cards:

-Lifestyle

-Gold

-Platinum

To update Gold card holders’ database based on address segmentation. There are more than 2
thousand Gold card holders from different regions both from Bangladesh and abroad. However, most
of them are from Dhaka.

Their personal details using Silverlight software and arrange them in a separate MS Excel file.

16
3.1.2 Communicating different departments
Communicate different departments as per collecting samples and updates about products. It is one of
the core responsibilities of marketing department to stay updated about upcoming products, new
designs and trends.

3.1.3 Making Layouts


The layouts color combination is appropriate, whether the clothes are suitable with selected models,
whether the jewelry selected with the dresses are appropriate etc.

3.1.4 Helping Co-workers


Some co-workers or seniors in the departments were really very helpful. They used to assign small
tasks based on their necessity. Every time tried to accomplish their assigned tasks within the deadline.
Some of the works involves: bill processing, making work-orders, distributing invitation cards etc.

3.1.5 Monitoring vendors


During every event, the event venue and monitor vendors those were assigned by our department to
serve food provide light setup etc.

3.1.6 Communicating Models


Before and after every event, it’s the task of marketing department to communicate models. Once the
lists of selected models are prepared.

3.1.7 Distributing Invitation Cards


“Aarong Fashion Show’17” was held on Radisson Blue on 13th May, 2017. Before this grand event,
invite premium customers and VIP’s. Distribute invitation card to different eBBAssies as a
representative of Aarong.

3.1.8 Responsible for Logistics


Eid-Ul-Adha’17 Photo-shoot was held on Sairu Resort, Bandarban. Arrange bus tickets, allocate
accommodation and arrange snacks and dry food during this 4days trip.

17
3.1.9 Learning Reflections
Aarong has such a wide range of networks, the chance to explore more and learn more than. Working
with Aarong helped to gain confidence in the field of marketingEssentially, different kinds of people
through the photo shoots and the fashion show.

3.2 The Product Marketing Strategies of Aarong


Aarong is a leading fashion house in Bangladesh. Though it was born in need of helping the
disadvantaged, poor silk farmers of Manikganj, soon enough Aarong started to grow and spread
throughout the whole country, from one single shop to the biggest retail chains of Bangladesh.

Besides, since 1984 this organization has export market. With growth, the product lines of Aarong
have also grown up. At present Aarong have more than 100 product lines. The products of Aarong are
as follows:

Women’s Products Children Product

 Men’s Products • Traditional  Clothes


 Traditional • Western  Toys
 Executive Shirts • Nightwear  Books
 Maanja • Shawls/Scarves  Shoes
 Fotua • Shoes
 Short Kurta • Bags
 T-shirts Fabrics
 Stoles/Shawls
Sandals

Home Textile Products Home Accessories Jewelry Products

 Bed  Bed Gold


 Table  Table Silver
 Living  Living Pearl
 Kitchen  Kitchen Other
 Kids  Lamps
 rugs
Fabric

18
Leather Products Terracotta Products Bamboo/Leaf Products

 Shoes • Decorative  Living


 Bags/wallets • Dining  Dining
 Belts • Lamps
 Boxes • Plant Accessories
 Photo Frames
 Office

Metal Products Candles Jute Products

 Decorative  Pillar  Decorative


 Living  Floating  Personal Accessories

Nakshi Kantha Products Food Products Glass Products

 Decorative  Table
 Fashion  Herbal Products Wood Products
 Table • Decorative
 Personal Accessories • Living
 Decorative
 Fashion
 Bed

Table-1.3: (product marketing strategies of Aarong)

3.3 Production Flow

Product Design Merchandis Orders & Raw


Costing
Requirements Studio e Order Materials

19

Aarong Outlets Producer (AAF/Independent)


Figure-1.1: (Production flow)

Aarong’s production flow is carried through an extensive process. Starts from product
requirements ends at finished goods. Between these boundaries there are many small/large
steps to follow.

Step 1: Product requirements

Aarong being one of the largest retail chains of Bangladesh needs a large quantity of
products in almost every occasion. Therefore, they don’t ask for products just before the
occasion rather they predict their requirements at least 1year before the occasion. Following
the requirements, all the departments get their target for the upcoming events/occasions and
work accordingly.

Step 2: Design

Aarong Central Store (commonly known as CS) has a dedicated department for the designers
where more than 60 designers work restlessly. They dedicate themselves in designing
season’s best offerings. Once a design is ready, they communicate with the producers to
create a sample copy which is later on sent to the General Manager of Designer for approval.
Without his approval no product is sent for large scale production.

Step 3: Costing

20
Once the sample is approved for large scale production, the costing department then
communicates with the external vendors to collect raw materials. Based on all kinds of raw
material cost and production cost, a price is set and further steps carried through.

Step 4: Merchandising

It’s the responsibility of merchandising department to select the producers and communicate
them properly about their responsibilities, requirements etc. A producer clears all his queries
from merchandising department and submits the samples to the department for initial
approval.

Step 5: Producer

The artisans are known as Producers. Producers communicate with the merchandising
department to collect necessary raw materials, design instructions and costing information.
They get working with low interest rate, collateral free loans. There are some producers who
produce independently and other work under the supervision of AAF (Ayesha Abed
Foundation) and sub centers.

Step 6: Quality Control

Aarong is very strict about its quality. A product needs to go through various stages of
quality control before getting final approval. For example, In case of a single type of Salwar
kameez (commonly known as SKD); block, stitching, embroidery everything is done by
separate units and is checked by QC team. After proper inspection in every step, a product
gets ready for packaging.

Step 7: Finished Storage

After going through all these steps, finished products are sent to the outlets. And if any
products are found which are not up to the mark then they are being sold by sub-centers
situated in Baniachong, Jessore, Kushtia etc.

21
3.4 Services

Aarong provides services to the disadvantaged artisans and under privileged rural women
who works for Aarong. Aarong has formed with the goal of bring about positive changes and
helping the rural marginalized people. For doing this they identified three major lacking
areas. Those areas are: working capital, marketing support and opportunity for skill
development.

According to Aarong these three basic facts are causing obstacles for productive employment
in rural areas. To fill up these lacking, Aarong provides some services for their workers and
suppliers. Those services are as follows:

 To promote efficiency and productivity instant payment on product delivery.


 For artisans, doing marketing communications and making availability of
information.
 To ensure reasonable value for efforts given by producers reaching out to them in
remote areas.
 Product development through product design and support.
 To increase product quality and marketability provide training and education skills
development.
 If necessary paying in advance for purchase order.
 To make producer aware of importance of maintaining quality, it‟s conduct quality
control.
3.5 Key Product Lines of Aarong

22
As mentioned before Aarong has more than 100 product lines. But their key product lines are
women‟s wear, men‟s wear, children’s wear, jewelry, leather, household (textile, non-textile)
and others. Others includes food, herbal products, stationary, toys and furniture. Maximum
portion of profit comes from these sectors. The percentage of these key product lines among
the total product line are shown in a graph:

Figure-1.2: (product line)

Figure-1.3: (itemize annual sales of product)

23
Figure-1.4: (Gold deal value and number of deals)

3.6 The Target Customers of Aarong

 Target customers are the focusing group of customers for whom products are
produced. As like as business organizations Aarong also has its own target group of
customers. As the price of Aarong‟s products is comparatively high, all classes of
people of our society cannot effort the pro Middle and higher socio-economic classes

 Expatriates

 Foreign visitors (Tourists and Business Travelers)

 Bangladeshis living abroad

3.7 Aarong’s Domestic Market

In its 34 years of journey, Aarong has created value for thousands of rural artisans and
Millions of satisfied customers. Today, Aarong is one of the strongest brand aBBAssadors for
Bangladeshi cultural heritage. At present Aarong has 65,000 artisans who are working in 13
production centers and 647 sub centers, 2200 employees are working in the corporate level
and has 12 Local outlets and 1 international franchise outlet. Recently it opened a new outlet
in Comilla.

24
Figure-1.4: (Purchase Percentage)

The outlets of Aarong are as follows:

Outlets of Aarong

Aarong Flagship Outlet, Uttara

Aarong at Dhanmondi

Aarong at Gulshan

Aarong at Moghbazar

Aarong at Wari

Aarong at Mirpur

Aarong in Sholashahar, Chittagong

Aarong in Halishahar, Chittagong

Aarong in Sylhet

Aarong in Moulvibazar

Aarong in Khulna

Aarong in Comilla

Aarong in London

Table-1.4: (The outlets of Aarong)

Sales growth of Aarong is increasing day by day as well as no. of the outlets is increasing.
The profit generated from Aarong is either reinvested for its expansion or ploughed back to
25
BRAC for development initiatives as it works towards BRAC‟s goal of poverty alleviation
through economic and human capacity building and empowerment of women.

3.8 Market Pricing Strategies of Aarong

They do pricing of the product according to the promotional activities they do to promote the
product and to recover the fixed cost of the product. Aarong follow differentiate pricing
policy as they charge higher price and better quality which create value to customer. For a
voluntary donation, “price” can be tricky. On one hand, the alumni organization wants to
encourage donations of any size to the class legacy funds, no matter how small. On the other
hand, it also wants to encourage alumni to consider making larger donations when possible.
Based on publicly available income data, the alumni organization recognizes that most recent
graduates have lower average salaries and disposable income compared to those who have
been working their fields for a decade or more. Acting on this information, it adjusts the
range of “suggested donation” levels for each class. Recent alumni marking a 5-year
anniversary are invited to contribute between $25 and $250. Alumni marking 10- and 15-year
anniversaries are invited to contribute between $50 and $500 to class legacy funds. Alumni
with 20 or more years see suggested donation amounts ranging from $150 to $2,500 or more.

Figure-1.5: (Aarong’s product Range)

3.9 Budget Information

26
The total expenditure to prepare this report as followed:

Serial No Particular (three Month) Amount (BDT

1 Questionnaires 250

2 Internet 1200

3 Mobile Bill 1500

4 TA/DA 3000

5 Printing and binding of Report 500

6 Others 250

Total 6700

Table-1.6: (Budget Information)

LISTOF PRICE FOR DIFFERENT TYPES

Types Price Range


product A+ (BDT)

Cotton 1000-6000

Muslin 7000-18000

Silk 8000-21000

Jamdani 7000-30000

Figure-1.6: (price for different)

27
Figure-1.7: (Size chart)

Men’s Product Price $Size Range

Category Price Range Size Range

Punjabi 1000-12000 36-48

Punjabi$ pajama set 400-600 34-48

Shirts 1000-7000 38-48

T-shirts 400-3000 S-XXL

polo 200-400 S-XXL

Fotua 400-700 S-XXl

Short kurta 500-1100 38-46

Lungi 400-200 47*90-96*50

Men’s uttorio 200-500 108*33

Shoes 500-2000 38-44

Accessories 500-1400 34-48

Figure-1.8 :( Men’s Price &size Range)

28
Women’s Product Price $Size Range

Category Price Range Size Range

Saree 1000-30000 ……..

Shalwar Kameez 1000-20000 32-46

Women’s Punjabi 500-2000 S-XXL

Nightwear 500-2000 ……

Scarves 200-2000 …….

Shawls 500-10000 ……..

Fabric 200-1300 ……..

Shoes 600-2000 35-41

Accessories 500-5000 ……..

Figure-1.9 :( Women’s Price &size Range)

3.10 Market Distribution Strategies of Aarong

The organization wants to make sure the donation opportunity is easy for anyone to act on.
For this reason, they offer a variety of different ways to contribute: mail a check; dial a phone
number; donate on a Web site using PayPal or a credit card; donate via phone using a mobile

29
app. People can even come to the annual reunion activities and contribute to the legacy fund
in person

The fashion shows work was distributed among the people of the marketing department. As
for the people varied it is as:

CRM:

Giving the specific people to attend the program. Conduct loyalty program on the show.
Making the people aware about the customized offer for Aarong customer.

Creative:

Making all the banner, poster, and leaflet to be distributed among the customer of Aarong.
Creating catchy content for the Facebook advertisement. Klink (2003) said that the color of
the brand reflects its identity. So the creative team has chosen orange as the color.

30
Brand management:

Contacting all the media person and inviting to the program. Ensuring the publishing of puja
fashion pictures on that specific media.

31
32
3.11 Promotion Strategy Of Aarong

A promotion strategy is an actionable plan to influence people about your business, generate
more leads, and boost customer engagement. It visualizes how to perform your marketing
strategy and communication, who to target as your audience, and where and when to execute
the promotion plan.

Many marketers spend more on business promotion each year, but they receive less. There
are too many options and marketing voices, so you have to make sure that your messages are
really reaching the people you want to approach when you promote your business.

3.11.1 Types of Promotion

There are many promotional marketing approaches where you can attract your prospects and
customers and draw people into the A.I.D.A. process. From traditional promotions like face-
to-face selling to digital advertising and the customer loyalty program.

Key promotion types are:

1. Personal (face-to-face) selling – Salespeople from a company give you a sales


presentation in person to persuade their offer. Unlike the other approaches, it is easier
to build relationships with you.i.e.) Sales meeting, sampling, telemarketing, etc.

2. Traditional advertising – You can use any paid advertisements to reach a bigger
audience, and prompt short-term engagement and sales. It is one-to-one marketing
and its costs are based on the bidding. i.e.) print ads, billboards, TV, radio, etc.

3. Direct marketing – It is direct communication with a highly-targeted audience


through marketing channels. It has more chances to get quick feedback and retain
customer relationships. i.e.) Emails, direct mail, digital ads, etc.

33
4. Sales promotion – Performing a short-term marketing campaign to gain attention and
encourage conversion or purchase. You can get immediate responses and interactive,
but it’s not good for developing a long-term relationship. i.e.) Contests,
coupons, sweepstakes, etc.

5. Public relations – To build a good corporate image and cultivate a stronger customer
relationship, you can provide appropriate information and handle both positive and
negative voices from consumers. i.e.) Newspaper/magazine articles, seminars,
speeches, etc.

6. B2B promotions – a B2B company offers materials and services that other businesses
need to work and get benefits. It focuses on how people will benefit from using your
offers. i.e.) Trade shows, case studies, online courses, etc.

7. Word-of-mouth marketing – It is the process to motivate people to share


information about your products and services with others. Since people trust words
more from close people than from a company, it will bring qualified leads. i.e.)
Referral program, customer reviews, influencer marketing, etc.

8. Customer loyalty program – a Customer loyalty program induces your current


customers to make frequent purchases and retain them which brings you great profits
in the long run. i.e.) Reward programs, referral incentives, etc.

34
Figure-1.11 (Online Marketing)

3.11.2 Benefits of a promotion strategy

These are the key benefits of a promotion strategy:

 Target the right audience

 Gain brand awareness

 Attract prospects and customers

 Publish your promotion at the best time

 Increase qualified customer traffic

 Show differentiation from competitors

 Offer more value to your customers

35
3.12 The Market Segmentation Strategies of Aarong

Market segmentation is a business practice that brands use to divide their target market into
smaller, more manageable groups of people based on common ground they share to optimize
their marketing, advertising, and sales efforts. Simply put, customers of each market segment
have similar characteristics that businesses can leverage to advance their efforts.

3.12.1 Geographical segmentation

Aarong focuses on urban areas of the country. Most of their outlets are situated in the city
hearts to grab the attention of target customers easily.

Country Bangladesh,Europe,USA,Canada,Japan,Taiwan,India
and Australia

Country region Major cities& towns

Density Urban

36
3.12.2 Demographic segmentation

To serve customers of various age groups. Aarong divided its customers based on gender and
age. For example: Taaga is designed for female customers aged below 30years whereas
products are for female age range above 30years.

Age Teenagers to old age

Gender Male & Female

Family life cycle All

Education Minimum Qualification

Religion All

3.12.3 Psychographic segmentation

Aarong mainly focuses on middle class and lower middle, lower upper and upper uppers. By
this psychographic it produces the exact product that fulfills the need of this group.

Social class High class, higher middle class, Middle class

Life style Trendy & Convenient

3.12.4 Behavioral segmentation:

Aarong also segments its customers based on occasion. Namely: Eid, Puja, Pahela Baishakh,
Valentine Day and Wedding season.

Occasions Regular Occasions

Readiness stage Aware

37
3.12.5 The Target Marketing Strategies of Aarong

Figure-1.12: (Target market share)

Aarong‟s targeted customers are targeted according to middle and higher socio economic
classes, all age groups, expatriates, foreign visitors, Bangladeshis living abroad and Export
customers: mainly fair trade organizations (85% fair trade and 15% commercial).

3.12.6 Market targeting

The list below refers to what’s needed to evaluate the potential and commercial attractiveness
of each segment.

 Criteria Size: The market must be large enough to justify segmenting. If the market
is small, it may make it smaller.

 Difference: Measurable differences must exist between segments.

 Money: Anticipated profits must exceed the costs of additional marketing plans and
other changes.

 Accessible: Each segment must be accessible to your team and the segment must be
able to receive your marketing messages

 Focus on different benefits: Different segments must need different benefits.

38
3.13 The Positioning Marketing Strategies of Aarong

Positioning is a strategic exercise we use to establish the image of a brand or product in a


consumer’s mind. This is achieved through the four Ps: promotion, price, place, and product.
The more detailed positioning strategy is at defining the Ps, the more effective the strategy
will be.

For example:

 A ladies shoe company might position its products as a status symbol

 A fast-food chain that serves sandwiches might position itself as the healthier fast-
food option

 A car company might position itself as the safest option for a family.

3.13.1 Positioning strategies

39
A few examples are positioning by:

Customer needs:

Knowing target market and how will fulfill their specific needs.

Product price:

Positioning brand/product as competitively priced.

Product quality:

Positioning brand/product as high quality.

Product use and application:

Associating brand/product with a specific use.

Competitors:

Positioning brand as better than competitors.

3.14 Competitor Analysis

40
Competitor analysis is all about identifying competitors and analyzing everything can find about
them. Determine their strengths and weaknesses in comparison to business and use it to advantage.
Understanding competitors is the key to finding gaps in the market business can fill.

3.14.1 Positioning in advertisements

Adverts are usually the first place a business positions itself, whether it’s a huge ad campaign
on prime-time TV or a quarter page local newspaper ads, its imperative share value
proposition clearly.

Brand-new skincare business, need to determine who target market is and what they need. If
intent is helping older woman coBBAt fine lines, content may go something like this.

41
3.14.2 Value statement

This statement couldn’t be any clearer, pointing out the product’s value, now need to back it
up with customer testimonials and success stories.

3.13.3 Mature design

Design would be simple and sophisticated and may also include an older celebrity target
audience would recognize.

3.13.4 Mature models

Using mature models would enable target audience to make a personal connection and picture
themselves using the product.

42
CHAPTER-4
FINDINGS

43
4.1 Swot Analysis of Aarong

SWOT analysis is a powerful technique for understanding organizations Strength &


Weakness and looking for the Opportunities & Threats it may face. This analysis is mainly
based on an imaginary situation.

SWOT ANALYSIS

POSITIVE NEGATIVE

STRENGTHS WEAKNESSES

 Brand name
 Most profitable cement  Poor Access To Collection
 Lowest cost producer  Vulnerable To Producer
 Biggest size of yard area  Financial Support
 Geographical benefit of tride level  No direct market Experience
 Higher Price
 Sales persons Need More Training

OPPORTUNITIES THREATS

 Proper infrastucture for handing and  More competitors


disposal of hazardous waste  Price Wars With Competitors
 Ensure sustainable development as  Changing Technology
total capacity still depends on the  Economy
traditional approach  Sudden Surprise
 Local Events
 New market Segment
 Cost Advantage

4.2 Strength

44
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.

4.3 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

45
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 sometimes 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.

4.4 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 PahelaFalgun, PahelaBaisakh, 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.

4.5 Threats

46
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

4.6 Findings

The findings according to analysis the organization and secondary date analysis for this
report are

SWOT Analysis

SWOT analysis is a powerful technique for understanding organizations Strength &


Weakness and looking for the Opportunities & Threats it may face. Used in a business
context it helps organization carve a sustainable niche in a market. Strength, Aarong has
almost “Zero” production damage rate which reduces their cost. Weakness, Aarong has a
reputation for new product development and creativity. they remain vulnerable to the
possibility that their producer may not be able to produce product timely due to their
inability. Opportunities, Aarong are 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. Threats, arong 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.

47
Customer satisfaction

If a business fails to fulfill the consumers demand then it is driven out from the market. And
to fulfill this demand, business has to analyze its consumers demand time to time Objective
of this report is to see the customer satisfaction level of the leading local brand Aarong.
Customer satisfaction, retention rates, and the customer loyalty positively influence the
performance of the business and assist to achieve competitive gain. loyalty means
customer perception about the brand and repurchase intention from Aarong.

Competitors Analysis

Competitor analysis in marketing is an assessment of the strengths and weaknesses of current


and potential competitors. This analysis provides both an offensive and defensive strategic
context through which to identify opportunities and threats. Aarong has its own version of the
competitive analysis. Each industry brings a different spin to this old favorite and user
experience design has its own set of criteria by which to judge competitors.

Services

Aarong has many special services for the disadvantaged artisans and poor rural women who
work for Aarong. For doing this they identified three major deficient areas. Those areas are:
working capital, marketing support and opportunity for skill development.To push
effectiveness Also gainfulness moment installment looking into item conveyance To
guarantee sensible quality for endeavors provided for by makers arriving at out to them on
remote regions. ¾ Item improvements through item configuration Also backing. ¾ Should
expansion result nature what’s more marketability provide preparing and instruction
aptitudes.

Performance Appraisal

48
Aarong emphasize a lot on performance appraisal and try to ensure fair procedure in the
evaluation procedure. However the human resource department of Aarong has to face lots of
problem during evaluation the performance of staffs. All the departments do not fill up the
performance evaluation form within the time frame and thus time management problem
occurs.

Online system

Systems where the input data enter the computer directly from the point of origin (usually a
terminal or workstation) and/or in which output data are transmitted directly to that terminal
point of origin .Aarong can’t start their online shopping system. It’s a major problem for
them.

Competitive position

Overall the future and the competitive position of Aarong in the fair trade organization is not
that much good but they are one of the oldest organization sin the Bangladesh so they are in
very good position .So they have to work hardtop keep their position 26% customers are
strongly agreed and 36% clients are agreeing that the Aarong product is good.

49
CHAPTER-5
RECOMMENDATIONS &
CONCLUSIONS

5.1 Recommendations

50
5.5.1 Creative Brand Awareness: Since, itslaunch in1976 Aarong has walk a journey of
more than 30 years using a few marketing values as its driving fuel. The first thing that
appeals our senses is the fact that these people look classy and culture without having to be
westernized. We believe that Aarong has always hooked itself to this idea of being utmost
classy without resorting to western outfits. Brands like Aarong have managed to understand
the pulse of the consumers and also aligned them with the culture instinct of the country and
also understood wat makes money.

Segmentation Marketing: Why It Should Be Implemented: Aarong is presently facing a


stunt in new customer growth. The majority of their customers are returning clients who have
used one of Aarong offerings and have come back for a second or third. Word of mouth
marketing is the only marketing technique that Aarong is implementing at this time.
Increasing or transforming marketing efforts could significantly increase Aarong client base.
Using segmentation marketing would allow Aarong to specifically market to new clients they
hopeto acquire. Because they already have a strong presence in the commercial truck and tire
dealer industry, it should not be a challenge to expand their client base within their current
market.

Product positioning: Aarong have a very good fame of positioning of the product. Aarong is
very selective and very strategic in positioning. Before launching any new product they
promote that product through billboards and fashion magazine. Even they often have fashion
show for specific product only to make a perfect positioning. Product life cycle stage. Aarong
has very satisfactory result in their product life cycle because they plan trough out for the
product and they have different promotional activities for the product so it always go a very
long time. Every individual product gets the highest priority in different times. Every product
has very natural kind of life cycle.

Market strategy: Marketing strategy is a long-term, forward-looking approach and an


overall game plan of any organization or any business with the fundamental goal of achieving
a sustainable competitive advantage by understanding the needs and wants of customers.

5.2 Conclusions

51
Aarong is not only a fashion house it is more than that. With times Aarong has evolved itself
as one of the most successful lifestyle store in our country maintaining the tradition and the
trends. Besides becoming the leading lifestyle chain store in Bangladesh they have cherished
the traditional crafts of Bangladesh through Ayesha Abed Foundation and have been able to
create employment of thousands of people. As a result Aarong is a fair trade organization
reaching global market by representing folklore tradition of Bangladesh. Aarong plays the
role of protector and promoter of traditional Bangladeshi products and designs. The designers
and the innovators of the products offered by Aarong have not only established the
organization of as leaders in handicrafts but have also reignited interest and popularity for
styles and traditional crafts that are native to the country. It is this gracious blend of
contemporary and customary that ensures that each product is original and saleable in a
modern society.

Aarong growing on this scale, it is Aarong’s marketing departments’ tribute that Aarong can
work with almost more than one hundred thousand people. In the end of my study I would
like to conclude by sharing my feeling that, it was a great journey of my internship in
Aarong. I have achieved contemporary marketing issues which are now practicing in most
modern organization. Thus we hope Aarong will keep up their journey and would become
one of prestigious brand by representing Bangladesh.

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52
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