SADAKALO

An Overall Situation Analysis of the Fashion Houses in Bangladesh: A Study on Sadakalo

Course:

Principles of Marketing (MKIT-101)Sec: 9

Submitted to:

Husna AraLecturer, Department of Business Administration

East West University, Bangladesh

Mohakhali, Dhaka.

Submitted by:Syed Md. Fakruuddin Millath

ID# 2011-2-10-195

Rashed Chowdhury

ID# 2011-2-10-196

Nahian Bahar

ID# 2011-2-10-193Abir MahmudID# 2011-2-10-186Date of Submission: 20th November, 2011

Husna AraLecturer, Department of Business Administration

East West University, Bangladesh

Mohakhali, Dhaka.

Dear Madam

Here is the study that you approved to do a term paper, and our topic was An Overall Situation Analysis of the Fashion Houses in Bangladesh: A Study on Sadakalo

At present Fashion House market has a good market-growth in Bangladesh . SADAKALO is one of the leading fashion houses in the fashion house industry, so it was a great opportunity for us to do the term paper about SADAKALO. It was an interesting experience doing this term paper. Really doing anything in a group is so enjoyable. We enjoyed a lot when we worked mutually. We tried a lot to complete this plan in a better way. We had to effort a lot to collect the information.We want to thank you for assigning this type of project that has helped us to have some experience about the fashion house in the current situation market. We believe that this experience will help us in the way of our career. And at the end, we like to thank all our group members who did their best in this project.

Yours sincerely,

Syed Md. Fakruuddin

ID# 2011-2-10-195

Rashed Chowdhury

ID# 2011-2-10-196

Abir MahmudID#2011-2-10-186Nahian Bahar

ID#2011-2-10-193

Acknowledgement:

For making the term paper we visited some outlets and also the head office of Sadakalo to collect some important information. Thats why we had to relay and communicate with some of employees of Sadakalo. By their help we got some rare and important information which was so important for our term paper. The persons we interact with them list is shown below:

NameDesignationLocation of Out let/ Head office

Razia SultanaSalesman Bashundhara City Branch

Yasmin AraSalesmanUttara Branch

Sharmin AkhterSalesmanDhanmondi Branch

Shafikul Islam SajibBranch ManagerBashundhara City Branch

Muntasir MamunBusiness AnalysisHead Office, Nikaton, Gulshan 1.

Without their co-operation it would be really so hard to complete the term paper and we are so grateful to them. Because they were very helpful, polite and generous with us to provide their information, those were possible to them.

We also thankful to Rafiul Alam, Imran Rahman Sohad, Istiaq Uddin , Sourav Das student of East West University who helped us to collect information about Sadakalo. contents

Title Page1

Letter of Transmittal2acknowledgements3table of contents4Exclusive Summary51 INTRODUCTION6-71.1. background of the study61.2. objectives of the study61.3. data collcetion method71.4. limitation of the study72. Report findings, analysis, discussion7-272.1. Theoretical fundations 72.2. company profile9-112.2.a. company name92.2.b. location9-102.2.c. founders102.2.d. history102.2.e logo112.2.f vision112.2.g mission112.2.h. objectives112.3. Current market situation 12-132.3.a. market description 122.3.b. market growth122.3.c. industry analysis132.4 Marketing Mix13-272.4.a. product profile13-222.4.b. Pricing Strategy222.4.c. Distribution23-252.4.d Promotional tools25-273. SWOT Analysis27-284. Conclusion295. Recommendations 29-30Executive Summery:At present fashion house market has a good market-growth in Bangladesh . SADAKALO is one of the leading fashion houses in the fashion house industry. Sadakalo, one of the well known fashion houses of our country was established in 2002 jointly by Tahsina Sahin and Azharul Haque. The brand use traditional and cultural concept to design their products by two colors. They segment their market in scientific way and do differentiation and positioning by artistic way. They provide all shorts of family product including parents to kids to couples. They are providing quality products with a reasonable price. Their mission and vision is to uphold our culture and tradition along with getting international recognition. They already have nine showrooms in Bangladesh and one in USA. Their target is to set up more outlets through out the world because they want to introduce Bengali culture allover the world. Their main theme is to satisfy consumer through their quality products.

1. Introduction:1.1. Background of the study: We are the student of BBA program in EWU, as a part of classroom teaching of course Principle of Marketing, sec-9, have been highly encouraged to prepare a term paper on the topic An Overall Situation Analysis of the Fashion Houses in Bangladesh: A Study on Sadakalo. 1.2 Objectives of the Study:

We the students of this university are very lucky for getting the chance to perform on such an important and real life situation based topic. Working on this topic was really a great opportunity to gather experiences and knowledge. We can learn a lot by studying this; like,a) We can know about the fashion houses of Bangladesh and also their position as well as the market situation.

b) We can perceive the problems or issue in a real world situation of the fashion houses.c) It can help us to improve our communication skills.d) There are some opportunities to apply theoretical knowledge.

e) It may help to clear the marketing strategy as well as other marketing terms.

f) This may give us a good knowledge to open a new business and managing business or organization.

g) It helps us to make a good relation as well as a strong communication between the group members. It provides us a good message, how to work with group members also how to manage.1.3. Data collection Method: We have collected our data via two methods.A. Primary Method:We went to various outlets of SADAKALO and gathered much information from the salesman, branch manager, and business analysis. We also surveyed the consumers. B. Secondary Method:We got all the secondary data via internet .Such as, official website and social networking service (Facebook).On their facebook page, there was few basic important information about them which helped us to complete this turn paper.1.4. Limitation of the Study:

Lack knowledge about market situation of fashion house. Least information availability. Unavailability of secondary data. Communication gap with higher level authority worker. Insufficient time to implementation because of eid vacation. They were not interested to provide their financial and some internal important information which was desperately needed by us to complete the term paper properly.2. Report Findings, Analysis and Discussion:2.1. Theoretical Foundation: Marketing Mix:

A set of controllable tactical marketing tools product, price, place, and promotion- that the firm blends to produce the response it wants in the target market.BCG Matrix:

The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce Henderson of the Boston Consulting Group in the early 1970's. It is based on the observation that a company's business units can be classified into four categories based on combinations of market growth and market share relative to the largest competitor, hence the name "growth-share". Market growth serves as a proxy for industry attractiveness, and relative market share serves as a proxy for competitive advantage. The growth-share matrix thus maps the business unit positions within these two important determinants of profitability.

Market Segmentation:

A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function.

Target Marketing:

A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise.

Positioning:

Positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.

The distribution channel:Distribution is also a very important component of Logistics & Supply chain management. Distribution in supply chain management refers to the distribution of a good from one business to another. It can be factory to supplier, supplier to retailer, or retailer to end customer. It is defined as a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user.

Promotion:

Promotion is one of the four elements of marketing mix (product, price, promotion, place). It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision.Media Vehicle:

Deciding to include advertising in the communication mix process is a relatively easy decision compared to deciding which media and media vehicle (for example which magazine or which cancel on TV, etc.)2.2. Company Profile:

A) Company Name:

The name of the organization is Sadakalo .They named Sadakalo based on primordial and classic color White & Black (Sada & Kalo) and our Bengali tradition.

B) Location:

The industry of Sadakalo is situated at House#62, Road#03, Block#B, Niketon, Gulshan-1, Dhaka, 1212, Dhaka, Bangladesh. Their head office also located there. They have ten showrooms on and outside of the country. The location of their showrooms is shown blow-

1. Dhanmondi Branch 351 Rifels Square, 3rd floor, road-2, Dhanmondi, Dhaka.2. Baily Road Branch 1 2 Proparty Arcade, Baily Road, Dhaka

3. Baily Road Branch 2 5-6 Navana Baily Star, Baily Road, Dhaka

4. Banani Branch House-26, Road-11, Blook- d, Banani, Dhaka

5. Gulshan Branch Gulshan Pink City, Glshan 2, Dhaka

6. Bashundara Branch Label 1, Block-D, SHOP 68-69, Bashundarta City Shopping Mall, Dhaka.

7. Uttara Branch H-9, Sec.-7, Sonargong Janapath, Uttara, Dhaka.

8.Dashi-Dosh Branch 1 Label 7, Block A, Shop 98, Bashundara City Mall, Dhaka

9.Dashi-Dosh Branch 2 Afmi Plaza, 1/A Baizid Mustami Road, Panchish, Chitagonj

10. New York Branch 37-38 73 Street Jacson ,Heights NY 11372, New York, USAC) Founder: The Founders of Sadakalo are Tahsina Sahin and Azharul Haque. Now Tahsina Sahin is the chairman and Azharul Haque is the CEO of Sadakalo.D) History:

Sadakalo a renowned fashion house started their journey in 2002 by opening a showroom at Rifles Square, Dhanmondi, Dhaka. Tahsina Sahin the founder of Sadakalo who was a student of Institute of Fine Arts of Dhaka University along with Azharul Haque thought to introduce our culture and serve the people who are so conscious about our Bengali culture, and through this thought they established Sadakalo. Now Sadakalo is providing quality products along with good service. Sadakalo has become a renowned and famous brand of our country.E. Logo:

A logo is a graphic mark commonly used by commercial enterprises , organizations to aid & promote instant public recognition like other organizations yellow has a distinct logs.that is given bellow-

F. Vision:

Their vision is to get international recognition and be the leading fashion house of Bangladesh.G. Mission:

Their mission is to get world wide recognition by delivering quality products and setting out outlets world wide to introduce Bengali tradition.

H. Objectives:

To fulfill the vision and mission they are focusing on:-

High quality product.

Reasonable price.

More outlets for making products highly available.

Offering exact size of cloths for satisfying consumers expectation.

Providing superior customer value to capture the market.2.3. Current Market Situation:Sadakalo is a well known brand. It has outlet in Deshi Dosh,where there are nine more brands ,and among these brands Sadakalo is in a good position can be named as Question mark position. Though Arong is the leading brand in the fashion house industry, Sadakalo considers other nine brands under Deshi Dodh as their main competitor .Now a days Sadakalo is being better recognized brand.

Now we are going to describe about three tools of current market situation:-

Market description.

Market growth.

Industry analysis.a) Market Description: Sadakalo which primarily focused on the market of cultural and traditional

fashion, based on family and couples .They also offer complete home accessories.

b) Market growth:

There is an increase in the demand for a particular product or service over time. Market growth can be slow if consumers do not adopt a high demand or rapid if consumers find the product or service useful for the price level. For example, a new technology might only be marketable to a small set of consumers, but as the price of the technology decreases and its usefulness in every day life increases, more consumers could increase demand. The increase in size or sales observed within a given consumer group over a specified time frame. When the management of a business is reviewing the success of a product, it needs to deduct the overall market growth rate from the observed product sales growth. About Sdakalo their overall market growth is going well as they are having a high sale in Sharies,Kamij and Panjabies. In term of accessories, these kinds of market demand are increasing day by day.c) Industry Analysis: Industry analysis is a type of investment research that begins by focusing on the status of an industry or an industrial sector. its includes the following method named after Michael E. Porter, this model identifies and analyzes 5 competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths.

1. Competition in the industry. 2. Potential of new entrants into industry. 3. Power of suppliers. 4. Power of customers. 5. Threat of substitute products.

Sadakalo mainly focuses on traditional and cultural dresses to differentiate their brand from their competitors. Their theme to serve families and couples has helped them to increase their sells of products well, comparing to others brands like Anjons, K-kraft, Rong ,Nipon, Deshal,Banglar Mela, and others. Match up to the adobes brands Sadakalo;s Panjabirs and Kamij sells well. On the other hand some product like accessories does not have a good sale.

2.4. Marketing Mix:A) Product Profile:

Characteristics: From an overall analysis we have got some different types of characteristics of their products, and these are given below:-

1) They only use two colors Black and white.

2) They follow Bengali and classical tradition.

3) They provide accessories and ornament along with principle products.

4) Their products are totally family oriented.

5) They set their products price considering middle class and higher middle class people.6) Offers family oriented and couple based products.

Variety: There are some verities of their products such as cloths for men, women and kids, also fashion accessories and books. Varieties of different of different products are shown below:-

Men:

Proverb goes your clothing reflects your personality. Keeping that

in their mind SADAKALO is exactly doing it for men.

For men their products and it's price are given in the next page:

Product nameProduct price

Panjabi650-10000

Fotua650-2600

Kurta850-2600

Shirt550-1850

T-shirt250-350

Woman: For stylish, intelligent and confident women SADAKALO is

providing quality products .They provide traditional and classic

dresses to the woman which is suitable for work, social activities and parties. For women their products and it's price are given below:

Product nameProduct price

Shari900-12000

Fotua650-1550

Tops1000-6000

Kamij1000-6000

Kids:

SADAKALO offers every kind of products which are made for men and women.Quality: Asking about their product quality they say that their product quality is good by which they can satisfy customer desires .Sadakalos perception about their product is shown below by a chart:-

Strongly DisagreeDisagreeNeutralAgreeStrongly Agree

Design: They follow the traditional design for their products, and by this they want to uphold the Bengali culture and tradition all over the world. They provide different style by the designing of their products on different occasions and season.

Features: Sadakalo always provides different features for their customers, like they provide a whole range of products service for an individual family, starts with parents to kids to husband and wife. They say if a product is made by them for a father or mother, the same product is also available for their kids. Along with these they provide different themes in their products based on verity of traditional or cultural occasion .Their products suits of all ages and classes of people.

Packaging: Packaging the products is one of the most effective way to attract customer. Sadakalo follows some significant strategy to package their products.

Sadakalo uses two types of packs, one is poly bag and the other is hard paper made shopping bag .The poly bag they use for product safety and the shopping bag for customers carrying comfort ability .They use their logo, address of their outlets and some innovative designs on their shopping bags.Products Position Trough BCG Matrix:

We can easily identify the position of the Sadakalos products by using BCG matrix. Though they are offering different kinds of products, the sale range is not same for all products. The position of these products is shown below- ** The BCG Growth-Share Matrix **

STAR

Panjabi

Kamij

Shari

QUESTION MARK

Shirts

Tops

CASH COW

Fotua

Kurta

DOG

T-Shirt

Accessories

High

Market Growth Rate

Low

High Low

Relative Market

Share

a) Star:

Stars are high-growth and high-share products. Sadakalo offers high market-growth products- Panjabi, Kamij, Shari, and they have a high market-share. So Panjabi, Kamij, and Shari are in the Star position. They need heavy investments to finance their market rapid growth.b) Cash Cow: Cash cows are low-growth, high-share products. Fotua, Kurtra have low-growth rate but a high market share, so they are in cash cow position. These established and successful products need less investment to hold their market share. c) Question Mark:

Question marks are low-share units but high-growth markets. Though Tops and Shirts have a high growth rate, Sadakalo has a low share market. They require a lot of cash to hold their share, let alone increase. So the managements have to think about which question marks it should try to build into starts.

d) Dogs:

Dogs are low-growth and low-share market products. Sadakalos T-Shirt and Accessories have low- share market , these products market-growth also low. They may generate enough cash to maintain themselves but do not promise to be large sources of cash. STP :

S T P Market Segmentation Positioning

Target Marketing

Market Segmentation:Sadakalo does their marketing segmentation and target marketing by using scientific formulas. On the other hand they do positioning and differentiation in an artistic way.

Sadakalo has specific marketing segmentation strategies for segmenting the consumers market and that is given below: Demographic Segmentation

Psychological Segmentation

Behavioral Segmentation

Demographic Segmentation: Sadakalo is segmenting their market by using four tools of demographic segmentation Age, Gender, Family life cycle and Occupation.

a) Age and life cycle :

Sadakalo offer their products for all ages people.

b) Gender : Sadakalo also segments their target market based on gender. They offer

their products for male, female and kids.

c) Family life cycle : Sadakalos important tool for segmenting their market is family life cycle. They always provide their products based on family and couple centric.

d) Occupation : Sadakalo segments their market on the basis of occupation. They offer their Casual product for students.

Psychographic Segmentation Sadakalo also segments their market by using two tools of psychographic segmentation.

a)Social Class : Sadakalos most important tool for segmenting the target market is social class.

They consider middle and higher middle class people as their ultimate customer.

b)Personality : Sadakalo designs their products such a way, so that different types of people,

having different personality can purchase their product. For example ,Sadakalo provides their products by based on white and black colour and tradition.

Behavioral Segmentation : Sadakalo also use some tools of behavioral segmentation for segmenting their market.

a) Occasions: Occasions is also a most important tool for segmentation the target market. Sadakalo focuses on some occasion more precisely in Eid-Ul- Fiter, Pahela Baishak, 21st February.

b) User Statues: Though Sadakalo has a good position in fashion industry, they want to capture more market by providing the standard products.

Target Marketing:

Sadakalo follows differentiated (segmented marketing) marketing strategy as their target marketing strategy. Sadakalo targets several segmentations and offers products to each and individual segments at a time accounting to customers needs and wants. For example , Sadakalo segments their market by using occasion, gender, social class at a time and offers Panjabi, Fotua, Kurta for those segments.

Differentiation and Positioning:

The way the product is defined by consumers on important attribution. The place the product occupies in consumers mind, relative to competing products. Sadakalo follow some methods for positioning and differentiate their product. For capturing the large market share, SADAKALO identifies and choices some possible competitive advantages.*Product Differentiation:

Sadakalo differentiates their product by following ways Style Differentiation : They always offer different style through their product.

Design Differentiation: Sadakalos product design is very attractive to look. It changes their product according to the customers want. Reliability Differentiation: Now a days Sadakalo becomes reliable among the customers as a brand.Durability Differentiation: Comparing with the other brand Sadakalo product is durable. Consumer can use their product for a long time.*Personal Differentiation: To provide superior customer value, Sadakalos all employers and sales man are trained up and having much responsiveness.*Image Differentiation: Sadakalos name and logo spread their fame and reputation. They use their logo to get a good position and soft-corner among the consumer mind.

Positioning statement for Sadakalo : To the other upper middle and higher classes of people our SADAKALO is offering best quality product to the consumers that no other fashion house can not provide such superior service as like us.

B) Pricing strategy:

Sadakalo always follows two things to set their product price and they are:

1. Cost consideration;

2. Customer perception.

They set their product price first thinking of production cost and then add a perfect amount of profit to make the price of their product reasonable to their customers .Their product price changes over time. When their production cost increases their product price increases and when their production price decreases their product price decreases also.

We can easily get a clear assumption about their products price by comparing their price with their competitors .We can see the comparison of the products price through the chart given below:

ProductsBrand Name

SadakaloKay-kraftBanglar MelaAnjon'sNipun

MPanjabi650-1000850-65000450-2650750-4000695-3315

EFotua650-2600-450-2300-395-1295

NKurta850-2600---485-1495

Shirt550-1800---525-825

WShari900-1200750-1450450-50001000-30000795-4995

OKamij1000-60001295-7000850-55001500-90001295-3495

MTops1000-6000--1500-12000-

E

NFotua650-1550-450-2000550-1200-

K

I

Dkids Products250-3000350-3000---

C) Distribution :

*Distribution Channels:Distribution of products, a complete process involves decisions about transportation, storage and store selection. To distribute products organisation use different marketing channels. Sadakalo is using two marketing channels, one for consumer products and another for industrial products.

Consumer Products: Producer

Showroom

Outlets

Customer

The channel Producer to Showroom to Customer is used by Sadakalo for consumer a product is shown below by a flow chart.Industrial Products:

Sadakalo collect industrial products by using producer to industrial user channel. This channel is commonly used for industrial product. The industrial products distribution channel of Sadakalo is shown below by the flow-chart. Producer

Industrial

User

By comparing the products price of Sadakalo and its competitors we can say Sadakalo is offering their products in a reasonable price. Exporting Issue:

Sadakalo is a well known brand in Bangladesh, and their aim is to get international recognition; thats why they have a plan to export their product in different countries. According this they have already two outlets at New work in USA. They export their products at New York in USA thought their showrooms commercially. They are earning a good profit by exporting their product. Now they are going to open more new outlets in USA, Canada, UK, India, and in some other countries .Thats why exporting of product is important for them.D) Promotion:*Promotional tools:- A companys promotional tools consists of the specific blend of advertising ,public relations ,personal selling ,sales promotion direct marketing tools that the company uses to create values and build or maintain a profitable relationship with customers, Sadakalo uses advertising and public relations tools in their promotional mix.

Advertising:- Advertising is the first and most important tool of promotional mix .It helps to get the strong position over customers mind and makes everyone aware of the product. Sadakalo uses newspaper and magazine for advertising their product.

Public relation:- To build a good relationship with the various publics of Sadakalo takes some strategy, like obtaining favorable publicity, build up a good corporate image and hand on head off unfavorable rumors, stories and events.

Media Vehicle:- As a establish brand of butic house industry Sadakalo uses different media vehicles according to their promotional budget and organizational position .Newspaper vehicle and magazine vehicles are the two media vehicles of Sadakalo . Massage of the Each Tool:-Sadakalo always offers their products based on family and couples. They say they want to serve the whole family, thats why they always design and provide their products in a complete family range and category. Their target is to provide every persons of an individual family, starts with parents, to husband and wife and kids. Advertising through news paper and magazine, they try to inform the customer about their new designed product and their features.

No discount:- Sadakalo does not give any kind of sales promotion but the Business Analyzer of Sadakalo mentioned that, they are going to provide some sales promotion on upcoming occasions.

Effect on sales:- As Sadakalo uses different types of promotional tools, there is a positive impact over their sales .Their opinion about the effects is expressed below in a chart:

Strongly DisagreeDisagreeNeutralAgreeStrongly Agree

ADV.

PS

PR

DM

Advertising is the most important promotional tool Sadakalo and it has a large impact over their sales .As they achieved a large impact over sales, so they are going to use more media vehicles like TV, radio, internet etc. By providing public relation they also got some good amount of increase of sales.

2.5. SWOT Analysis:The goal of SWOT analysis is to match the organizational strength with attractive opportunities in the environment, while eliminating on overcoming the weakness and minimizing the upcoming threats. Through SWOT analysis organization can easily cope up with overall market environment. By analyzing the information and the overall situation of Sadakalo in market we got the below informations drawn to the Table in the next page. Strength1) Whole range of family product.2) Designing product using only two color Black and White.3) Good pricing system.4) Same products for family members. Weakness1) Poor financial base.2) Insufficient out lets.3) Poor promotional activities.4) Poor customer relationship.

Opportunity1) Possibility of capturing international market.2) Effective positioning.3) Increasing demand for butik products.

Threats

1) Increasing amount of new fashion houses. 2) Entry of international brands.3) Effect of western culture.

SWOT Analysis3. Conclusion:

Sadakalo is in the fashion house industry for the last nine years. In their whole journey, they have passed a lot of experiences. If we observe their whole journey, then we can define their achievement and lackage .They are now in a good position and as a well known brand in market. Fulfilling their prime target to get international recognition they have already set outlet in abroad. But still they are far from their mission and vision, but if they go like present situation, they will be able to achieve their goal.

4. Recommendation:

Though every organisation wants to develop their position and tries to distinct their organisation, they have some lacks or incompetence of idea and steps. Sadakalo also has some lacks which needs some recommendations:

* Sadakalo sets the price of their products thinking of the middle class, and higher middle class people but they should also follow the other classes of people.* Sadakalo has only outlets at Dhaka and Chittaging in Bangladesh but they should also set outlets other cities and districts of Bangladesh.

* They only follow traditional culture but they should follow other cultures.

*They do little media publicity, they should make it high.* They do not provide any sales promotion. They should provide it.

*They should do different activities to maintain long term customer relationship.*They should do varies types of social activities and sponsorship.

So, by analysing the things for recommendation, we found the lackages, they should take necessary steps to fulfil their mission and vision.

PAGE 26