Aarong BangladeshA Business Report on

Bus 101; Sec 9

Noor-E-Hasnin (NeH)Lecturer, School Of Business

Prepared for

Group MembersName

Ehsan Karim

M. Tahsinul Amin

Samia Naz

Zannatul Mahzabin Khan

Sanjida Afrin

Faria Nazin Mahbub

ID

101 0347 030

101 0771 030

101 0289 030

133 0850 630

133 0814 030

141 1093 630

Introduction“To provide a stable and gainful source of employment for the under privileged rural artisans, lift up the traditional identity and the commitment of quality service”-

- Based on this principal, Aarong started their journey.

Throughout Bangladesh and in international destinations, the name of Aarong is the synonym of quality originality and uniqueness.

The designer and the creators of the product range offered by Aarong, have not only established the organization as leaders in deshi handicraft, but have also reignited interest and popularity for styles and traditional crafts that are native to the country.

It is the handicraft-marketing arm of BRAC (Bangladesh Rural Advancement committee), the largest NGO in Bangladesh.

Literature Review (Company Background)

Aarong began as a cause – a means to an end for a quiet organization fighting to uphold the dignity of the marginalized.

In 1976, when BRAC- a Bangladeshi NGO dedicated to alleviating poverty and empowering the poor, first began encouraging sericulture for women in Manikganj, their only buyers were a few scattered retailers in Dhaka.

Weeks, even months would pass between supply and payment, until BRAC intervened.

Aarong was born out of a need to ensure that the penniless silk farmers of Manikganj were paid for their goods upon delivery, so that they could feed their families.

Literature Review (Mission & Vision)

Mission Statement

“To make Aarong the best in the world in providing a unique Bangladeshi lifestyle experience to empower people and promote Bangladesh while protecting our environment.”

Vision

Aarong has a vision to establish them as world’s one of the famous fair trade fashion house, and to remain market leader throughout its business. Aarong expanded its business in international arena. Aarong has a dream to develop more artisans of Bangladesh and make them self- dependent and attract more and more international customers towards Bangladeshi culture.

Literature Review (Organizational Structure)

How Aarong was formed Ayesha Abed Foundation- it was established to commemorate

the memory and work of late Mrs. Ayesha Abed, a co-worker and wife of the Founder and Chairperson of BRAC.

The AAF aims to work with the most underprivileged women in the society.

The AAF plays the role of a facilitator-Today More than 40000 women work directly for Aarong in its production centers.

They are trained and then given the opportunity to generate income.

The AAF is closely interrelated with other programs, especially BRAC Development Program (BDP) and Aarong.

Social compliance & Producers Relation

The main idea of having a social compliance department is to ensure that the Customers can shop at Aarong with a clean conscience.

The working environment, terms and conditions, wage levels, worker benefits, health and safety facilities, working hours and worker development are all standardized and implemented by the Producers.

Producer Relations is a very important function to the organization and gives the Producers a chance to express their views on how to improve the working relationship between Aarong and its Producers.

Organogram for SCPRSenior officer monitoring:

Responsible for implementing social compliance in the field level at both AAF and Individual Producer.

Addresses issues / complaints and recommend solution for the problems from the producers.

Facilitates in undertaking social audits for producers

Management Trainee Officer:

Prepares Monthly Reporting on department progress and activities.

Helps Senior Manager to accomplish day-to-day activity.

Initial grievance handling for individual producers

Products & Services of Aarong Aarong today supports the lives and livelihoods of thousands of rural

artisans and handicraft producers.

These producers and artisans create wide range of products which are unique, traditional and appealing to the modern consumers-starting from clothes, accessories to home wares.

For the fashionable accessories there is one special department called jewelry department where jeweler creates elegant jewelries that are contemporary yet traditional using gold, silver and jewels like pearl, emerald.

For exporting the products Aarong has a separate department in head office and very selective artisans work here to produce fine quality products.

Clothing& Accessories

Men’s garments:

Punjabi Shirts Short kurtas Lungi Shawls

Women/Ladies Garments:

Sharee Shalwar Kameez 3 pieces Fabrics Scarves

Nakshi Kantha The colorful patterns and designs that are embroidered

on these articles results in the name ― Nakshi Kantha.

Each of this kantha represents the contents of a woman‘s mind and fields with romance, sentiment and philosophy.

Home Textile & Jewelry Items Home Textiles/Home Accessories:

Aarong is the name of differentiation.

More than 3000 weavers across the country are involved with the production of Aarong clothing lines.

Each and every dress has its own significance as the talented craftsmen who are contributing make them to the locally manufactured handloom fabric.

Jewelry items: Aarong is selling silver, Gold, pearl,

beads, Clay & Jute Jewelry

Gold Jewelry of Aarong is guaranteed to

be 21 karat.

Leather & Food Items Leather:

Aarong offers the finest quality of leather

produced in Bangladesh. The leather is made by small leather workshop situated in and around Dhaka. Sheep and calf leather is generally used. Some products include ladies sandal,

ladies bag, jewelry box, belts, wallets etc.

Food Items: Aarong Dairy Milk

(Chocolates, Strawberry and

Tamarind) Aarong Yoghurt (Sweet and

Sour

Flavors)

Industry Analysis (Major Competitors)

There are many major competitors based on the product category that Aarong produces and one of the major competitor is “Deshi Dosh”

it is a combined effort of 10 local companies to promote the culture and clothes of Bangladesh and the stores are Deshal, Nipun, Rang, Banglar Mela, Bibiana, Shadakalo, Anjans, Probortona, Nagardola and Kay Kraft altogether are this Deshi Dosh.

SWOT Analysis (Strengths) Specialist marketing expertise to promote the brand.

Leading brand reputation all over the country.

Customer loyalty towards the brand as they are the first to present.

Good Production quality.

Increased sales each and every year.

Strong Management team.

Innovative idea.

Low production damage rate.

Unique handicrafts that can be found nowhere.

SWOT Analysis (Weaknesses)

Poor access to collection.

Vulnerable to producer.

Financial support.

No direct market experience.

Limited budget in R&D (Research & Development).

Higher prices of products

Sales person needs more training.

Long waiting lines at the stores.

SWOT Analysis (Opportunities)

New distribution channel.

Capture more market share.

Local events.

New market segment.

Seasonal fashion influence.

Cost advantages.

Can be surprise competitors to every company under the same category.

SWOT Analysis (Threats)

More competitors.

Price wars with competitors.

Competitors have some superior products; i.e. Shadakalo.

Changing technology.

Political instability in our country

Stable economy.

Conclusion

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.

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.