Agora Report Final
Agora Report Final
Agora Report Final
Anwar Hossain Assistant professor Department of Marketing, Faculty of Business Studies, University of Dhaka Dhaka-1000
Sir, We forward herewith the report and document about Supply chain strategy of Agora: with price addition at each stage for our course no: 413 named Business Logistics. We look forward to receiving any comments that you may have in relation to the above. Thank you for your attention. Yours sincerely, Group name: 1971 Batch no: 16th Sec: A Department of Marketing University of Dhaka
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ACKNOWLEDGEMENTS
We take immense pleasure in thanking our faculty, Md.Anwar Hossain Assistant professor, Department of Marketing for having permitted us to submit the report.
Finally, yet importantly, we would like to express our heartfelt thanks to our beloved parents for their blessings, our friends and classmates for their help and wishes for the successful completion of this report.
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Business Logistics
A report on Supply chain strategy of Agora: with price addition at each stage
By
1971
UNIVERSITY OF DHAKA
FACULTY OF BUSINESS STUDIES DEPARTMENT OF MARKETING Batch 16th Section: A
18 May 2013
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Submitted to,
Md.Anwar Hossain Assistant professor
Department of Marketing Faculty of Business Study University of Dhaka
Submitted by,
Group name: 1971 Sec: A 16th batch B.B.A Program Department of Marketing Faculty of Business Study University of Dhaka Group Detail
Name of Members
Mahabub Elahi Sahed Mahmud Loren Ashraf Sayela Nazneen Md.Ariful Islam Md.Toriqul Islam
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Rahim Afrooz is one of the leading business groups in Bangladesh. It is doing business in the country for more than 50 years with fame and reputation. The main strength of the group is its reputation of doing ethical business practice. Throughout its business during last 50 years, it has mainly operated in the automotive industry. Recently it has extended its business in energy and retailing business. It operates in an SBU model. The SBUs of Rahim Afrooz are: (www.agorabd.com) 1. RahimAfrooz Batteries Limited 2. RahimAfrooz Distributions Limited 3.RahimAfrooz Superstore Limited 4.RahimAfrooz Energy Services Limited 5.Excel Retreads Limited 6.Super Abrasives Limited 7.Greyfab Limited 8.Arzed Limited 9.RahimAfrooz CNG limited 10.Metronet limited This report is made for RahimAfrooz Superstore Limited. The brand name for this SBU is Agora. It is the leading superstore in the Dhaka & Chittagong city. It has revolutionized the retailing industry of Bangladesh. It is established to provide quality shopping experience for its customers. With twelve large outlets in Dhanmondi, Gulshan, Mirpur, Uttara, Maghbazar and Sobhanbagh, it is also the largest retailer in the country. It is offering more than 20,000 items under one roof. These items are divided into 11 categories. The categories are: Household, Grocery, Meat, Fish, Vegetable, Fruits, Fast food, Dairy, Bakery, Pharmacy, and Cosmetics. (www.rahimafroz.com) The name of Agora is entwined with the glory of-the Agoras marketing policy to create a better environment for consumers. A man gifted with an inherent entrepreneurial sense, Late A. C. 5|Page
Abdur Rahim, the founder of Rahim-Afrooz started a trading house in 1973, which continued to expand in scope and nature as time went along. In 2000, Agora was introduced to the world. The success was immediate as there was a demand for such business in the local market. Agora's state-of-the-art technology and creative strategy gave it an edge ocher its competitors at local market. (www.agorabd.com) Agora is a Dhaka-based supermarket chain. It is the largest retailer, both by local sales and by domestic market share, and the largest retailer in Dhaka leaving behind PQS, Meena Bazar, Nandan Mega Shop, Pacific, Pick and Pay, Etc, Shop & Save and others. (www.agorabd.com) Originally specializing in food, it has moved into areas such as clothes, consumer electronics, and consumer financial services, selling and renting DVDs, compact discs and consumer telecom accessories. (www.agorabd.com) Agora Ltd. is an enterprise that combines industry and trade, mainly engages in retailing the quality products at the most lowest price in the market. The management of Agora was an enthusiastic advocate of trading stamps as an inducement for shoppers to patronize their stores: They signed up with all types of quality products manufacturer, and became one of the companys largest clients. But the management was a fan of pile it high and sell it cheap, and in the mid-2000 Agora faced many cost problems associated with not properly integrating its purchased chains of stores. When the firm overstretched itself opening few more outlets throughout the city, management consultants were called in to sort out the mess. In 2001 Agora launched Operation Checkout, an across the board price cutting campaign aimed at countering the threat from the new breed of discounters such as Kick Save. (www.agorabd.com) Facing the world and looking beyond, Agora will always maintain the pure-hearted, enterprising, quality and struggling spirit make efforts to scrupulously abide by our goodwill, create splendid future together with you in management vision of joint development, joint prosperity and mutual benefits! (www.agorabd.com)
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reluctance to purchasing own brands, which are generally considered to be more profitable for a supermarket as it retains a higher portion of the overall profit than it does for branded products. (www.agorabd.com) The management in the mid 2000 has taken the bold step of trying not to focus on the usual corporate mantra of "maximizing shareholder value". The company's mission statement reads, "Our core purpose is, 'To create value for customers to earn their lifetime loyalty'. We deliver this through our values, 'No-one tries harder for customers', and 'Treat people how we like to be treated'". The underlying aim is of course to make higher profits, but there is a clear focus on customer service at the top level of the company. (www.agorabd.com) Diversification: The company has a four-pronged strategy: O "Core Dhaka business" - That is, grocery retailing in its home market. It has been innovative and energetic in finding ways to expand, such as making a large-scale move into the convenience-store sector, which the major supermarket chains have traditionally shunned. O "Non-food business" - Many supermarket chains have attempted to diversify into other areas, but Agora has been exceptionally successful. By late 2004 it was widely regarded as a major competitive threat to traditional high street chains in many sectors, from clothing to consumer electronics to health and beauty to media products. Agora sells an expanding range of own-brand and as well as local and international non-food products, including non-food Value and Finest ranges. It also has done quite well in non-food sales in Ireland. CDs are one of the best examples, with Agora Gulshan promising to sell all chart CDs (except compilations) for Tk.50.00 compared with local Music Stores selling the same for around Tk. 70.00. (www.agorabd.com) O "Retailing services" - Agora has taken the lead in its sector in expanding into areas like dairy and utilities. It usually enters into joint ventures with major players in these sectors, contributing its customer base and brand strength to the partnership. Other supermarkets in Dhaka have done some of the same things, but Agora has generally implemented them more effectively, and thus made most profit. (www.agorabd.com)
suppliers. More than 3-4 suppliers are involved in each type of products to ensure quick supply to meet emergency demand of products. Although Agora rejected to tell us the actual source or the actual addresses of their suppliers, they agreed that most of their suppliers of agricultural products are from the nearby cities, sub-cities and villages of Dhaka city such as Savar, Narayanganj, Gazipur, Narshingdi, Manikganj and so on. (Mahmudul Hasan, floor manager, Uttara outlet, Agora). If we show the supply chain of Agora briefly in a diagram, it will look like the following:
Supplier
Customer
Supplier
Customer
Agora outlets
Supplier Customer
Supplier
Customer
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Probable Price at Mirpur outlet 20Tk per kg 22 Tk per kg 22 Tk per kg 45 Tk per kg 39 Tk per kg 100 Tk per kg 35 Tk per hali 40 Tk per hali 355 Tk per kg 460 Tk per kg 1400-2000 based on grade 129(discount16tk) 250 Tk per kg 310 Tk per kg 700 Tk per kg
Telapia fish 100-105 Tk per kg Chicken(normal) 230-240 Tk per kg Chicken(thigh) 280-300 Tk per kg Shrimp(golda) 550-600 Tk per kg Source: Uttara outlet, Agora.
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Survey 1:
The total number of respondents was 15 and the survey was taken place in Agora outlet, Uttara. The results were as follows: Age: 15-25=4, 26-35=5, 36-45=3, 46-55=2, 56-65=1, 65 and above=0 Education: doctorate=0, post graduation=8, under graduation=5, HSC=2, SSC=0, below SSC=0 Occupation: student=2, service holder= 4, business person=7, home maker=2 Approximate monthly income: below 20000=1, 20000-35000=3, 35000-50000=4, 5000070000= 5, 70000+=2 Marital status: single=3, married=12 Im a customer of Agora for: less than 1year=3, 1-2years=4, 2-3years=6, 3-4years=2
1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10
Swiftness in delivering the ordered products Quality of the products Skills of the employees Quality of the services provided Easiness to find out the right product The use of automated billing system Responding to your needs Quality of cooperation with our staff Customer support service provided Behavior of the sales staff
1 0 0 1 0 0 0 2 0 3 0 Poor
2 0 0 3 0 0 0 3 1 3 1
3 3 3 3 2 3 0 4 2 4 3
4 7 4 4 6 10 7 6 5 3 6
5 5 8 4 7 2 8 0 7 2 5 superior
Please mark whether one the following have incurred during your purchases from _ _ _ _ _ _ _ _ YES 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 Delay in deliverables? Have not found high priority items? Look like a junk store? Delayed response to your call? Improper behavior by one of our employees? Communication difficulties with the staff in charge? Lack of required information? Other? (Please Specify) NO 3 2 10 2 Number of Occurrences
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Please put tick mark for each statement in appropriate box where 1-strongly disagree, 2Disagree, 3- Neutral, 4 Agree, 5- Strongly Agree
1 Variables Purchase from _ _ _ _ _ _Agora _ _ _ _ _ improve the customer status When this store promises to do something by a certain time, it does so When a customer has a problem, this store shows a sincere interest in solving it. Store hours are convenient for my shopping needs. Store atmosphere and decoration are appealing A good selection of products was present (Store) has the lowest prices in the area. Merchandise sold is of the highest quality The merchandise sold is a good value for the money. Merchandise displays are attractive Advertised merchandise was in stock. the quality of their products is up to the standard The price that they charge is reasonable Purchase from other super shop will incur high switching cost Lowest lead time after online order placement The range of the products of _ _ _ _ _ _ _ _ _ _ _ is diversified Employees in this store give prompt service to customers Strongly Disagree 0 0 0 0 0 0 0 0 0 3 0 0 0 4 8 0 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
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18 19
Employees in this store are never too busy to respond to customer's requests Employees of this store are able to handle customer complaints directly and immediately This store gives customers individual attention
2 1
5 2
1 4
4 5
4 4
20
21 22 23 24 25 26 27 28 29 30 31 32
Employees in this store are consistently courteous with customers This store willingly handles returns and exchanges The physical facilities at this store are visually appealing. Materials associated with this store's service (such as shopping bags, catalogs, or statements) are visually appealing The employees appear neat Customers feel safe in their transactions with this store This store insists on error-free sales transactions and records. Customers have no risk to deceived All the workers in _ _ _ _ _ _ _ _ _ _ _ properly trained anti-adulteration campaign performed by _ _ _ _ _ _ _ _ _ _ _ will build up trust Stores are conveniently located _ _ _ _ _ _ _ _ _ _ _ operates long hour a day
2 10 0 1
2 5 0 3 0 0 0 1 5 2 4 3
4 0 2 4 0 0 0 1 0 0 4 3
5 0 7 4 7 13 5 6 3 5 5 5
2 0 6 3 8 2 10 5 1 5 2 2
0 0 0 2 6 3 0 2
10. Im satisfied with the overall service provided by Agora Strongly agree=4, agree=7, neutral=2, disagree=2, strongly disagree=0 11. Agoras perishable products are always found fresh Strongly agree=5, agree=7, neutral=2, disagree=1, strongly disagree=0
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Survey 2:
Total number of respondents was 10, done in our neighborhood Personal Questions: Age 15-25= 3 46-55 26-35=6 56-65 36-45=1 65 and above
Postgraduate=4 S.S.C
undergraduate=3 Below
Service holder=4
Business person=4
Home maker
Approximate monthly household income [in BDT] Below 20000 50000- below 70000 Marital Status Single=3 Married=7 20000- below35000=3 Above 700000=3 35000- below 50000=4
Agora=4
Q3 - Why do you shop at your supermarket of choice? (Please tick all the answers that apply) Competitive prices Choice of products=1 Favorite brands=2 Location / convenience Quality of products=3 others Q4 - Would you consider yourself loyal to the supermarket you use the most ( if question 2 is answered)? Loyal=3 Not Loyal=1 Moderately Loyal=2
Q5 - On average, if you are now loyal to your current supermarket but used to shop at a different supermarket please indicate which ones below.
Q6 - On average how often do you shop? I shop more than once a week=3 I shop once every 2 weeks=1 I shop once a week=2 I shop once a month or less
Q7 - Do you agree or disagree with the sentence: 'The following supermarkets are competitive on price'? (Please answer for each supermarket) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Meena Bazar Swapno Agora Nandon SMart Prince Bazar 0 3 2 2 3 2 2 1 2 1 1 1 1 2 0 4 2 0 2 0 1 2 1 0 0 0 1
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Others
Q8 - Do you agree or disagree with the sentence: 'The following supermarket offers quality products'? (Please answer for each supermarket) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Meena Bazar Swapno Agora Nandon SMart Prince Bazar Others Q9 - Do you agree or disagree with the sentence: 'The following supermarket offers a wide product range (e.g. food, clothing, electrical, etc.)? (Please answer for each supermarket) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Meena Bazar Swapno Agora Nandon SMart Prince Bazar Others 2 2 4 0 1 1 2 1 2 0 1 2 3 2 0 2 1 3 1 1 0 1 1 1 1 0 1 3 2 4 1 1 1 1 2 1 1 1 1 1 2 1 1 2 0 1 0 0 1 2 3 0 0 0 2 0 1
Q10 - Do you agree or disagree with the sentence: 'The following supermarket offers a large choice of items within each product range (e.g. for food - fruit & veg, chilled, frozen etc.?) (Please answer for each supermarket) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Meena Bazar Swapno Agora 17 | P a g e 4 3 4 2 1 1 2 1
1 1 0
2 3 2
3 2 2 2
Q11 - Do you agree or disagree with the sentence: 'The following supermarket offers value for money'? (Please answer for each supermarket) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Meena Bazar Swapno Agora Nandon SMart Prince Bazar Others Q12 - Do you agree or disagree with the sentence: 'The following supermarket has a high level of presence in the market'(store locations, advertising etc.)? (Please answer for each supermarket) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Meena Bazar Swapno Agora Nandon SMart Prince Bazar 4 2 5 1 0 0 2 0 0 2 2 2 1 2 1 0 1 3 4 2 2 1 2 4 1 1 1 3 2 2 2 2 2 3 3 3 2 2
Others Q13 - Amongst the following supermarkets, which one offers the best value for money? (rank 1=best value for money, 6=worst) Swapno 18 | P a g e 2 G MART 5
Ssmart 4 Others
Q14 - Amongst the following supermarkets, which one offers offers a wide product range (e.g. food, clothing, electrical, etc.)? (rank 1=best choice of products, rank 6=worst) Swapno 2 Nandon 3 Meena Bazar 1 G MART 5 Ssmart 4 Others
Q15 - Amongst the following supermarkets, which one offers a large choice of items within each product range (e.g. for food - fruit & veg, chilled, frozen etc.)? (rank 1=best choice of products, rank 6=worst) Swapno Nandon Meena Bazar G MART Ssmart Others
Q16 - Amongst the following supermarkets, which one is the most customer-friendly? (rank 1=most customer-friendly, rank 6=least) Swapno Nandon Meena Bazar G MART Ssmart Others
Q17 - Amongst the following supermarkets, which one do you think respects the local community the most? (rank 1=most respectful, rank 6=least) Swapno Nandon Meena Bazar G MART Ssmart Others
Q18 - Amongst the following supermarkets, which one do you think is the most visible in terms of market presence? (rank 1=most visible, rank 6=least) Swapno 19 | P a g e G MART
Ssmart Others
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Table of contents:
Topic
Historical background of Agora: Types of products Agora typically sells Marketing strategies of Agora Supply chain strategies of Agora Value addition at each stage Survey 1 Survey 2 References
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5-6 7-8 8- 9 9-10 11 12-14 15-20 21
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References:
1.Sudhamay Chandra Das Store manager (former floor manager) RAHIMAFROOZ SUPERSTORES LIMITED (AGORA) Plot#02, Road#04, Sector#04 Uttara, Dhaka-1230 Tele phone: +880 2 8920308, 8921416 Mobile: +880 1832 154 585 E-mail: sudhamoy.das@rahimafroz.com 2. Md.Mahmudul Hasan Floor manager RAHIMAFROOZ SUPERSTORES LIMITED (AGORA) Plot#02, Road#04, Sector#04 Uttara, Dhaka-1230 3. www.rahimafrooz.com 4. www.agorabd.com
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