1.Introduction
Aarong is a well-known lifestyle retail chain in Bangladesh that was established in 1978. It is
a social enterprise of BRAC, one of the largest non-profit development organizations in the
world. Aarong promotes and preserves traditional Bangladeshi handicrafts, while also
providing employment and income opportunities to rural artisans. Over the years, Aarong has
become a household name in Bangladesh and has expanded its operations to include a wide
range of products, including clothing, jewelry, home decor, and more. Aarong's commitment
to promoting sustainable practices and ethical production has made it a popular brand among
conscious consumers.
2. Brief History
"To create a permanent and lucrative source of work for the less privileged rural craftsmen, to
elevate the traditional identity, and to adhere to excellent service."
Based on these fundamental beliefs, Aarong began its adventure in Bangladesh. Aarong is an
organization devoted to improving the lives of the underprivileged by promoting indigenous
Bangladeshi items and facilitating their exportation. Aarong's name is associated with quality,
creativity, and individuality across Bangladesh and the rest of the world. The designers and
makers behind Aarong's offerings have done more than just secure the company's position as a
market leader in deshi handcraft; they've also helped revive interest in and demand for
authentic, locally made products. Each product's uniqueness and marketability in current
society is ensured by a combination of contemporary and traditional elements. Therefore,
hundreds of artists in Aarong produce ceramics, jewelry, woven baskets, silk, leather, brass,
and exquisite wood carvings. Today, few urban buyers would dispute that Aarong is the local
Central hub for deshi craftwork. Aarong's product designs have reintroduced consumers to the
products and styles that are indigenous to Bangladesh, with its designers fusing the traditional
with the modern in a way that has won instant consumer approval and sparked a revolution in
fashion that has since been adopted by countless other boutiques and stores. The designs of
Aarong's products emphasize the many sorts and textures of crafts and patterns that have been
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passed down from generation to generation among weavers and artists in craft centers around
the nation.
2.1 Established
Aarong is a fair-trade organization founded in 1978 with the mission of bringing about good
improvements in the lives of impoverished craftsmen and rural women by reviving and
promoting their skills and craft. Aarong accepts and promotes a diversified representation of
65,000 craftsmen, 85 percent of them are women, including weavers, potters, brass workers,
jewelers, jute workers, basket weavers, wood carvers, and leather workers, among others.
Today, Aarong is the basis upon which independent cooperative organizations and familybased craftsmen advertise their wares, in an endeavor to establish the nation's handicraft sector
on a global platform of admiration and recognition. Over the years, Aarong has gained a
reputation as one of the top domestic and international makers and distributors of rural crafts.
At present it has 12 domestic outlets in Bangladesh. These are 6 in Dhaka (Uttara, Dhanmondi,
Gulshan, Moghbazar, Wari, Mirpur), 2 in Chittagong (Sholashahar, Halishahar), 1 in Sylhet, 1
in Moulvibazar, 1 in Comilla and 1 in Khulna. Except these outlets Aarong has 1 franchise
outlet in London. Aarong provides the local and international public opportunity of owning a
Bangladeshi handcrafted product. It is representing Bangladeshi culture to the outside world.
This organization has export market since 1984. Aarong exports their products to Italy, U.K.,
Spain, Canada, Japan, Australia etc. 85% of the buyers of export market are leading fair trade
buyers and 15% of the buyers are commercial buyers including London outlet. At present
Aarong has grown as a flourishing international enterprise making the local, ethnic crafts
available to the international market. Aarong has successfully included into its wide and diverse
spectrum of beautiful crafts from silks, handloom cotton, endi to terracotta, bamboo, jute and
much more.
2.2 Naming
The organization Aarong is named with a Bangla term. It implies "a local market or fair." The
village fair provides a venue for artisans of all trades to show and sell their traditional wares.
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The logo of Aarong is the image of a peacock. It is amazingly beautiful because of having the
glowing, luminous, diversified colorful patterns in its tail. This logo indicates that Aarong
products are eye-catching and unique as a peacock. Moreover, it wants to emphasize on its
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natural, eco-friendly products through the symbol. There are two colors in the Aarong‟s logo.
One is black and another is orange. Black represents professionalism and orange represents
energy.
3.Market segmentation of Aarong Clothing
Any business that wants to locate its ideal consumer for the things it offers must understand
market segmentation. Before focusing on a market, Aarong gathered extensive and
comprehensive information about consumer preferences, sentiments, and needs for clothings.
Aarong has focused on regional, demographic, psychological, and behavioral aspects when it
comes to its clothing market segmentation.
i.
Demographic Segmentation:
Aarong divided its customers into different age groups and gender. Aarong's primary
target market is women aged 25 to 45 who are fashion-conscious and have a higher
income. Aarong also targets men and children with its product offerings. It has clothing
line that ranges from newborns to toddlers to young adults to adults. But its primary
focus is on women. Not only does it have ranges of sizes for each age group, it also has
unique designs that suit each those age of groups. For each gender, it provides clothing
to different accessories including shoes. It recently launched its beauty and skin care
line, ‘Aaron Earth’ which is also targeted for both genders. Additionally, Aarong targets
individuals who are interested in handcrafted products and are willing to pay a premium
for them.
ii.
Psychographic Segmentation:
Aarong's target customers have a strong affinity towards traditional Bangladeshi culture
and heritage. They value authenticity, quality, and uniqueness in the products they
purchase. Aarong's customers are socially responsible individuals who are interested in
supporting local artisans and supporting social causes.
iii.
Geographic Segmentation:
Aarong has multiple outlets spread all over the country in all its cities. Aarong's target
market is primarily in Bangladesh, where it has a strong presence with over 20 retail
stores. The brand's focus is on urban areas with higher income demographics. Aarong
has also expanded its presence internationally, primarily targeting the Bangladeshi
diaspora in countries like the UK, USA, Canada, and Australia.
iv.
Behavioral Segmentation:
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It makes segments according to its occasion, user status, loyalty status, readiness stage
and attitude towards the products. It identifies occasions such as Pohela Boishakh,
victory day, Ekushe February etc. to promote products color scheming seasons.
4.Aarong’s Targeted Customer for Clothing
Aarong's target customer is generally a middle to upper-class individual who values
authenticity, quality, and social responsibility. The brand's target customer is someone who
appreciates handcraft designed clothes and is willing to pay a premium for them.
Aarong's clothing line is primarily targeted at women who are fashion-conscious and looking
for unique, high-quality clothing that reflects the country's culture and heritage.
Aarong offers traditions with western theme in their clothes. They bring fashion with fusion in
the clothes in the market. Many hand-crafted designs that have extinct are brought by Aarong.
Aarongs clothing include salwar kameez, saree, kurti, western tops, Panjabi, shirt, T-shirt,
shawl, baby frocks etc.
Aarongs targeted customers are those who fascinates these handcrafted designs and love to
carry fashion along with tradition.
Overall, Aarong's target customer is someone who values authenticity, quality, and social
responsibility. The brand's target customer is primarily a middle to upper-class individual who
is interested in unique, handcrafted products that reflect the country's culture and heritage.
5.Aarong's Positioning Strategy for Clothing
Aarong has positioned itself as a premium brand that offers high-quality, handcrafted products
that are designed by local artisans in Bangladesh. The brand has built a reputation for creating
unique and authentic products that reflect the country's culture and heritage. Aarong's brand
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image is closely tied to its social responsibility initiatives, as the brand is owned by BRAC, a
non-profit organization that focuses on poverty alleviation in Bangladesh.
Aarong's products are positioned as premium items that offer a superior level of quality and
authenticity compared to other retail chains in Bangladesh. The brand's product design and
manufacturing process emphasize the use of natural materials and traditional techniques,
creating products that are not only aesthetically pleasing but also functional and durable.
Aarong's retail stores provide a unique shopping experience that further reinforces its
positioning strategy. The stores are designed to showcase the brand's products and highlight
the craftsmanship behind them. Aarong's employees are trained to provide excellent customer
service and help customers find products that meet their needs. The stores also offer a variety
of services such as customization and alterations, enhancing the customer experience and
reinforcing the brand's premium positioning.
Aarong's pricing strategy is also consistent with its positioning as a premium brand. While its
products are priced competitively, they are still positioned as premium items that offer a
superior level of quality and authenticity.
Overall, Aarong's positioning strategy is focused on creating a unique and authentic shopping
experience for its customers. The brand's focus on quality, authenticity, and social
responsibility has helped to differentiate it from other retail chains in Bangladesh. Aarong's
premium positioning has also helped to reinforce its reputation as a trusted brand that offers
high-quality, handcrafted products.
Overall, Aarong's marketing mix is designed to create a unique and high-quality shopping
experience for its customers. The brand's focus on quality, authenticity, and social
responsibility is evident in its product design, pricing strategy, and promotional efforts.
Aarong's strong retail presence, online sales channels, and well-trained employees also
contribute to its success in the Bangladeshi market.
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5. Aarong Clothing’s marketing mix
i.
Product: The first step in developing a marketing strategy is to comprehend the product
itself. The marketer's responsibility is to describe the product and its benefits to the
customer.
Aarong offers a wide range of handcrafted products. The brand focuses on creating
unique and high-quality products that are designed by local artisans. Aarong's products
are known for their aesthetic appeal, functionality, and durability. Aarong’s clothing
product lines are as follows-
ii.
Price: Pricing is the sum of money customers are willing to spend on a thing. Marketers
must consider supplier costs, seasonal discounts, rival prices, and retail markup in
addition to connecting the price to the product's actual and perceived value.
Aarong's products are priced competitively, making them accessible to a wide range
of customers. The brand also offers discounts and promotions to encourage customers
to make repeat purchases. It follows differentiate pricing policy as they change their
iii.
Place: Aarong has a strong retail presence in Bangladesh with more than 20 stores
across the country. The brand's retail stores are designed to provide a unique shopping
experience that showcases the craftsmanship behind its products. Aarong also sells its
products online through its website and other e-commerce platforms.
iv.
Promotion: Aarong uses a variety of promotional strategies to attract customers and
build brand awareness. The brand's marketing efforts include advertising, sales
promotions, public relations, and personal selling. Aarong also uses digital marketing
strategies such as email marketing, social media marketing, and targeted advertising to
reach its customers.
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6. Recommendation
Aarong clothing’s weakness:
i.
Inefficient supply chain management: Aarong clothing’s supply chain management
system is not optimized for efficiency, resulting in delays in product delivery, high
inventory costs, and lower profit margins. The company's inventory management
system is not transparent, leading to difficulties in tracking inventory levels and
restocking products.
ii.
Limited digital presence: Aarong has limited digital presence, which makes it difficult
for customers to find and purchase clothes online. The company's website is not userfriendly, and it lacks a mobile application to facilitate online purchases.
iii.
Inconsistent product quality: Aarong sources its raw materials for their clothing from
different suppliers, which can result in inconsistent product quality. The company lacks
a proper quality control system to ensure that products meet their standards.
iv.
Limited product range: Aarong ‘s clothing range is limited, which can result in reduced
customer appeal. The company mainly focuses on clothing and handicrafts, with a
limited range of other products.
v.
Limited store locations: Aarong has limited store locations, which can make it difficult
for customers to access its products. The company's stores are mainly located in urban
areas, leaving out potential customers in rural areas.
vi.
Pricing strategy: While Aarong's pricing is competitive, its premium positioning may
limit its potential to attract a wider customer base.
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Potential solutions to address Aarong's weaknesses:
i.
Implement a transparent inventory management system that tracks inventory levels and
restocking needs.
ii.
Optimize warehouse space utilization by adopting a Warehouse Management System
(WMS).
iii.
Implement a Transportation Management System (TMS) to optimize delivery routes
and reduce transportation costs.
iv.
Adopt an automated inventory tracking system, such as Radio Frequency Identification
(RFID), to improve inventory accuracy.
v.
Develop a user-friendly e-commerce website that allows customers to browse and
purchase products online.
vi.
Create a mobile application to facilitate online purchases and provide additional
features such as personalized recommendations and push notifications.
vii.
Partner with online marketplaces like Amazon, Alibaba, or Daraz to reach a wider
audience.
viii.
Conduct regular product inspections to ensure that they meet quality standards.
ix.
Conduct supplier audits to evaluate supplier quality standards.
x.
Obtain quality certifications like ISO 9001 to demonstrate that the company has
implemented a quality management system that meets international standards.
xi.
Introduce new product categories to diversify the product range.
xii.
Collaborate with local artisans and designers to create unique, handmade products that
differentiate the company from competitors.
xiii.
Expand the store network by opening new stores in strategic locations.
xiv.
Partner with other retailers and wholesalers to distribute products to a wider audience.
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7. Conclusion
In conclusion, Aarong is a well-established brand in Bangladesh with a strong focus on
traditional culture and social responsibility. The brand has a clear target customer and has
implemented effective marketing strategies to reach this audience. Aarong's marketing mix
includes a range of products, pricing strategies, distribution channels, and promotional
activities, all of which are tailored to appeal to its target customer.
However, Aarong also faces challenges such as limited reach, limited product offerings, and
pricing strategy, which may limit its potential for growth and diversification. To address these
weaknesses, Aarong could focus on expansion, diversification, and price differentiation, which
could help to increase its reach and appeal to a wider range of customers while maintaining its
commitment to social responsibility.
Overall, Aarong has a strong brand identity and a clear focus on social responsibility and
traditional culture. With effective implementation of its marketing strategies and solutions to
address its weaknesses, Aarong can continue to thrive and remain a leader in the retail industry
in Bangladesh.
8.Reference
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