An Analysis on Marketing Mix Strategy of Agora

Chapter 1

1.0 Introduction

1.1 Agora General Superstore Ltd

Rahimafrooz Superstores Ltd. (RSL) launched Agora the first ever retail chain in Bangladesh in
2001. Agora promises a valuable shopping experience that provides quality and fresh products at
the right price. It aims to consistently provide a remarkably satisfying and valuable shopping
experience through a business that improves the quality of life for customers and team members.

Each store of Agora is planned to have a total floor space of minimum 7000 sqft offering 20,000
variety of products covering all essential commodities, edibles, groceries, and other daily
household requirements including fresh produce, fresh meat, poultry, fish, packed and canned
grocery, toiletries, and all daily necessities from 10 am till 10 pm. seven days a week throughout
the year (Internet 2). The first store was opened on August 24, 2001, at Rifles Square, Road 2,
Dhanmondi. The second store was opened in Gulshan in April 2002 and third one has opened in
Moghbazaar in April 2005. The first Agora outlet outside Dhaka started its journey in an 11,000
square feet store at Afmi Plaza, just beside Mimi Supermarket, Panchlaish in May 26, 2010

Agora is endeavoring to fulfill the everyday needs of its customers by providing the right quality,
assortment and price through stores of various forms and sizes.

While Agora mainly focuses on food items - ranging from a wide variety of fish, meat,
vegetables, fruits, bakery, dairy, and grocery - it also carries a vast array of other grocery,
personal care, and various other consumer goods and household utensils.

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1.2 Scope of the study
This report covers the basic marketing strategies central to Agoras existence amid stiff
competition from newer retail outlets. The focus of this report will be on drawing the elements-
products, price, promotion, and distribution together in analyzing the complex nature of
marketing that characterizes large-scale retail stores like Agora.

1.3 Objectives of the Report

The main objective of the report is to find out the supply chain management system of Agora.
Other objectives of this report are,

To know the business process of Agora.

To know the organizational structure of Agora.
To know the product of their store which its offering to the customers
To know the marketing strategy of Agora.
To know the product promotion strategy of Agora.
To know the communication structure of Agora.
To know their additional services of Agora.
To make a recommendation for Agora.

1.4. Limitation of the report:

In every research work there exist some limitations that the researcher faces while conducting
different activities. In the process of the research work, We also come across certain limitations
that hampered the actual findings and analysis of my research work. Some of these notable
limitations can be identified are

Employees of Agora are usually busy with their daily work and activities, so it is quite
impossible sometime to get time from them for getting information about our report.
Sometimes the authority does not provide their internal information which is very
difficult to collect from any other sources.
Time is also a barrier for making this report.

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 Chapter 2

2.0 Conceptual issues

2.1. About Agora

Bangladesh entered the supermarket era on August 24, 2001 with Rahimafrooz Superstores
Ltd. launching Agora, a retail chain superstore in Bangladesh, introducing a newway to shop.
The company has already opened four outlets Rifles Square, Gulshan Avenue, Maghbazar and
Mirpur zoo road in Dhaka - and Chittagong as well as other cities of the country. The superstores
are open from 9 am to 8 pm every day. Rush of customers is experienced in the morning and
evening. Agora superstores are currently focused in food retailing, ranging from a wide variety of
fresh vegetable, fruits, meat and fish to grocery, bakery, dairy, personal and household products.
Agora provides its customers with guaranteed quality and freshness. It carries more than30, 000
varieties of products and has plans to expand its product portfolio to carry other ranges of
consumer products in the coming years.

The Agora project was a ground-breaking project that underlines the potential for harnessing the
latent market in Bangladesh, said an executive of a leading corporate house adding, they have
produced a service offering of international standard.

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2.2. Corporate Information
The Rahimafrooz journey dates back to the early fifties when Late Mr. A C Abdur Rahim
founded a small trading company and paved the way for making of one of todays leading
Bangladeshi business conglomerates. Over the decades, Rahimafrooz has grown in size, scale,
and diversity. The Group today has seven Operating Companies (SBUs), three other business
ventures, and a non-profit social enterprise. As of 2007, the Group currently employs more than
two thousand people directly and a further twenty thousand indirectly as suppliers contractors,
dealers and retailers. Rahimafrooz operates in three broad segments automotive aftermarket,
power and energy, and retail. Ranging from automotive after-market products, energy and power
solutions, to a world class retail chain the team at Rahimafrooz is committed to ensuring best in
class quality standards and living the Groups four core values Integrity, Excellence, Customer
Delight and innovation.

2.3 Organizational Structure

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2.4. Number of branches (Dhaka & Chittagong)
RSL-HEAD OFFICE

05, Mohakhali (5th Floor), Paragon Building. Dhaka-1212

UTTARA-4

Zam Zam Tower, Commercial plot no 23 & 25 Sonargaon Jonopod Road, Sector-13,
Uttara ,Dhaka

JAPAN GARDEN CITY

JAPAN GARDEN CITY- Tokyo Square, 26/A Tajmahal Road ( Ring Road ), Block # C, Japan
Garden City Mohammadpur, Dhaka-1207

UTTARA -3

Update Tower, Plot-01,Sector-6,Uttara,Dhaka

DHANMONDI

80, Rifle Square,

Road-2, Dhanmondi, Dhaka-1205

GULSHAN

R M Center, 101,
Gulshan Avenue, Plot-5, Road-37, Dhaka-1212

MOGHBAZAR

Gulfesha Plaza, 08 S.S. Selina Parveen sarak,(Old-69),Maghbazar, Dhaka

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 INDIRA ROAD

Rowshans Dom-inno Relievo, 28 Indira Road, Farmgate, Dhaka-1207

MIRPUR

Northern Lions RP Tower, Section-2,Zoo Road,

Mirpur, Dhaka

UTTARA-1

Plot-2, Road-4, Sector-4,

Uttara, Dhaka-1230

SANTINAGAR

Conifer Tower (1st floor), 31,

Shiddeswari circular Road, Shantinagar, Ramana, Dhaka

CHITTAGONG

Afmi Plaza, 1/A, Baizid Bostami Road Panchlaish, Chittagong, 4000 Bangladesh

DHANMONDI-27

Genetic Plaza, Plot-404(Old-16), Road-27(Old-16), Dhanmondi, Dhaka

PALLABI (MIRPUR-12)

Rangdhunu Complex, Plot-155/156, Pallabi, Section-12, Mirpur, Dhaka

UTTARA -2

Plot-31, Gausal Azam Sarani, Sector-14, Uttara, Dhaka-1230

SEGUNBAGICHA

Alampana Tower 6/7/A, Segunbagicha,

Topkhana Road, Dhaka-1000

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2.5 Objectives of Agora
Agora has some objectives that every employee is bound to given their customers. These are
given below-

To offer clean, healthy and a friendly environment to customers for shopping.

To give customers confidence and establish and environment of trust.
Encourage producers to produce standard & quality products, for better prices.
Ensure consistency of variety and supplies of products.
Improve product packaging & presentation
Contribute to the well-being of the people in the process

2.6Plan of Agora
There is some plan of Agora that wants to enquire in near future. This are given below -

Establish a chain supermarket.

Each supermarket will have at least 7000 sq. ft. in a single shop.
The supermarket will have adequate parking space.
The supermarkets will carry wide variety of quality assured product only.
Develop & promote local products.

2.7 The Competitors of Agora in the Market

The Main competitor of Agora, according to the Marketing Manager is the Kacha Bazaars
Nevertheless, when pressed on the other competitors the management was considered as Mina
Bazaar & Shopnow

2.8 Target Market

A target market consists of a set of buyers sharing common needs or characteristics that the
company decides to serve (Kotler, ET all, 2004, p.251) mentioned earlier, the recent rise of the
working parents of the country had been a prime reason behind the launch of the project.
According to the Marketing Manager Working parents nowadays usually dont have time to
go to different shops and stores for their daily needs. They would rather prefer a place where
they could conveniently do their shopping in a congenial environment. This is one of the most
important points that Agora relies upon for its business.

As Agora aim is to encourage large sales turnover, their focus is on those income groups who
can afford to buy in large quantities. Therefore, their-marketing strategies are segmented
primarily under the following criterions.

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 Economic status
Education

Age

2.8.1 Economic Status

A persons economic situation will effect on product choice. Person can consider buying an
expensive product if he/she has enough spendable income, savings or borrowing power (Kotler
et all, 2004, p. 188). Agora primarily targets the following classes their customers. They are:

Middle Class

Higher-Middle Class

to the local markets although bringing in the older generation is tough due to their proclivity to
toward local market shopping that have been practiced by them. He points out that in a store
where you dont have to haggle over price, the shopping experience becomes less adventurous
which is something the older generations are unwilling to relate to.

Middle Class

The Middle class is made up of average-pay white and blue-collar workers who line on The
better side of two and try to do the proper things. The keep up with the trends, they often buy
products that are popular. Most are concerned with fashion seeking the better brand names,
better living means owning a nice home in a nice neighborhood with good school (Kotler et all,
2004, p.l 84).

Higher-Middle Class

Higher middles possess neither family status nor unusual wealth. They have attained positions
as professionals, independent businesspersons, and corporate managers. They have a keen
interest in attaining the better things in life. They believe in education (Kotler et all, 2004, p.
184).

The management of Agora conducted extensive survey prior to starting the business and this
included finding what the working the working class (middle and higher middle) need. The
general outcome was that the need of a store such as Agora was there the reason behind
choosing this particular class is explained by the manager of the firm by the knowledge that the
middle class of this country is expanding very rapidly and the working mother concepts is no

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longer special case. The prospects felt that elite would come with it, on general belief that both
want quality at a reasonable price.

2.8.2 Education

The other reason behind choosing the middle and higher-middle class is that they are usually
the more educated among all the other classes, ensure taste and choice according to the
management.

2.8.3 Age

Consumer needs and wants change with age (Kotleret all, 2004, p.241). Agora uses age and life
cycle segmentation, offering different products. Surprisingly, the generation factor seems to be
affecting the plans of Agora in a positive way. According to the marketing manager young
people are more at home shopping at Agora rather than going

2.9 Interior of Agora

Agoras interior is similar to most supermarkets in design and layout due to trends in
marketing. It produce tends to be near the entrance of the store. Milk, bread, and other essential
items are located in the rear and other out of the way places. This is purposely done to ensure
maximum time spent in the store, strolling past other items and capitalizing on impulse buying.
The front of the store or Front-End is where one might find point of sale machines or cash
register.

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 Chapter 3
3.0 Methodology of the Report

3.1 Data Collection Technique:

Observation: I have visited Probartak Circle branches of Agora that time I mainly
observed their products, products prices, their shops environment as well as their
product prices.

Secondary information: Secondary information has collected by reviewing

websites, journals, brochures and some other relevant documents

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 Chapter 4
4.0 Findings of the study

4.1. Supply chain strategy of Agora

Here we will mainly discuss the distribution process of Agoras product to their customer.
Actually Agora doesnt produce any product. They buy their product from local market than
They Refine their product for their customer. Then they store their product at their show room.
Then they rearrange their product under their whole branches. Then they sell their product to
their customer. Their main motive is we will your product

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4.2. Marketing mix Strategy
The projects strategic aim to source in bulk quantities from the producers or manufacturers of
products, thereby reducing distribution layers. Traditionally such practice brings about
organization within the industry, and essential commodities, edibles and groceries account for the
significant portion of the food industry-which in turn is the largest contributor to the broad
retailing industry, (establishment of the chain of supermarket would have a significant impact on
the entire retailing industry in Bangladesh.

Agora, being a retail service store, does not sell its own products. So its marketing strategy relies
very heavily upon the products that the store keeps for the prospective customers, the price at
which they provide those products and the manner in which the products reach the customers at
the store. Their aim is to offer an extensive selection of brands and materials providing choice of
different sizes at different prices. The marketing strategy employed by the stores is focused on
the following:

Product
Price
Promotion
Distribution

4.2.1 Products
Product is anything an organization or individual offers or exchange that may satisfy customer or
customers need or the marketer own needs (Bennett et all, 1988, p. 286). According to the
Marketing Manager Agora has about 20,000 different items in each store providing both variety
and quality. The store combines merchandise with a full range of grocery products.

The products at the store many are divided into the following categories:

Perishables (includes fresh fruits, vegetable, meat, fish etc.)

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 Non- perishable (includes canned- house- hold goods like personal care products and
items).
Pharmaceutical products

Perishables

The fresh fruits and vegetable are local products from local farms.

Frozen meat and dairy products are among the fast moving products. Flour, pulses and other
staple foods are packed graded and labeled by local suppliers, an idea given to them by Agora.
The idea is to project the image of convenience to the shoppers.

The international brand in the frozen meat and fish products, pizzas, cheese butter and other
meat, fish or daily goods. They are relatively fast- moving as they cater to the varied taste and
are of relatively high standards. It has to be noted that although some foreign consumers had
suggested that pork and alcoholic drinks be made available in the store, the suggestions were
dropped to keep in line with the larger cultural concept.

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Canned and bottled items like fruits and fruit juices are mostly imported from Australia. The
general idea that these products are good value for money accounts largely for the prominence of
these brands. Brands are preferred owing to image value.

Items such as soft drinks and snacks are available at different prices and varieties although it has
to be noted that most of them are common brands available almost everywhere except for a few
especially imported by Agora.

Daily breakfast needs are among the fastest-moving items in the store, which include coffee, tea,
milk, cereals, and chocolate items. Except for milk and tea brands the rest is dominated by
foreign brands. Chocolate brands are comparatively diverse.

Non-Perishables

These items include personal hygiene products and household utensils. They take up only about
20% of all the goods available. Household cleaners and insecticides comprise of both local and
international brands. Soaps, Shampoos, Dishwashing liquids and Detergents are available in the
personal hygiene products section, dominated by UNILEVER, an established brands, preferred
as they have a general acceptability in the market and usually have a high turnover. This helps
Agora maintain a high sales volume. Utilities such as disposable knives, forks, spoons,
aluminum, foils and wrappers are available in small quantities (understandably waiting for a
demand to be created)

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Cosmetics and deodorants are available providing a reasonable amount of variety. New products
and innovations by local farmers are encouraged by Agora. It itself takes the responsibility of
marketing these special products in their stores. The idea is to represent Agora, as the sponsor for
local innovations and in turn benefit from the profit made though such sales. It also gives them
an edge over most competitors by being the first to introduce them. By the by the marketing
manager said that presently wide acceptance of TEE R EDIBLE OIL is result of their vital
contribution

Pharmaceutical Products

The pharmaceutical section is similar to a small pharmacy. The medicines available are not
special in that they are the usual drugs available in other small pharmacies in the city. They sale
pharmaceutical products as it same price as other medicine shop.

Quality Control

Their quality control is very high. According to the manager the stringent quality ensures that the
products are update on a routine basis so that the expiry date is not exceeded. Products bought in
and not sold are either returned to the suppliers or discarded.

4.2.2Pricing:
In setting prices they Agora follow a combination of cost based pricing, value based pricing &
competitors based prices. In case of most non-perishable product (such as soap, saving cream,
powder, shampoo etc.) the follow competitors based price. And in case of perishable good they
follow value based pricing.

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In the perishable items sector, the fresh fruits, vegetable, beef and fish are priced higher than
elsewhere. The executive explained this case by relating extra price to the solid weight that is
provided by the store and the extra effort that goes in to clean the vegetable and meat from the
whole bunch.

In this case I tried to find Agoras actual products price list. But refused to show it as a its very
confidential issue to them. So here Im giving their outlet as secondary data.

4.2.3 Promotion
Management needs to inform and persuade the market regarding a companys products (Stanton
et all, 1991, p. 13). The ideal in a retail store is to strike a balance between what kinds of
products are fast selling and profitable. An important first step in the business besides upgrading
is its image. The challenge lies in convincing customers that prices are affordable and that the
quality is value of money.

The promotional mix employed by Agora primarily focuses on the following methods:

Advertisements and the media

Sales promotion
Cross promotion
Publicity

Advertisements and the Media:

At first, a private advertising agency called ADCOM had been hired to design and produce ads
that Agora requires. The budget allotted for advertising, is roughly 2.5% of net sales. The
message potential of Agoras first claim of A new way to shop'-has been reduced largely due to
the growth of similar stores that followed.

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Overall Agoras advertising concentrates upon the news media rather than electronic media. The
reason given is that at the moment Agora has only two outlets so giving advertisements in the
electronic media would be inappropriate. Now-agora expenses 0.91 % of net sales for
advertising.

The News Media

A survey was conducted to find out first which newspapers were most circulated in the
Dhanmondi and nearby areas. The English language daily The Daily Star and the Bengali daily
The Daily Jugantor & Pratham Alo came out the top of the list Ads were given out in these
papers which the manager expected would reach the target market more efficiently in
comparison with expensive and no specific electronic media.

Sourse: http://epaper.prothom-alo.com/view/dhaka/2015-08-28/13

Outdoor Displays

The billboards have a long life as well as a high readership. Most messages are in English
including the logo, which provides an-idea of the consumer group that Agora targets.

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Sales Promotion

Sales Promotion is a short-term incentive to encourage the purchase of sale or a product or

service (Ullha et all, 2001, p.489). Without sales promotion company might never have made
that purchase or might have bought another brand (Bennett et all, 1988, p.524). Agora employs a
wide range of sales-promotion methods. The main methods include:

Discounts
Raffle Draws

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Special shelves are placed at the forefront and are reserved for any company wanting to promote
their products. In exchanges Agora is paid a special rent by the prospective companies other
trade promotions by suppliers include leaflets and small posters.

Cross Promotion

As Agora is a relatively new venture, need was felt to associate established firms with it as a
promotional strategy. Uzbekistan Airways and Fantasy Kingdome were involved with Agora in
promoting the brand through sales or advertising. Besides these they make an agreement with
standard chartered Bank for interchanging Pride customer They provide special service for
Pride customer.

Overall the most important and effective promotion of Agora has been through mouth-to-mouth
communication of friends and relatives. This has bought in a lot of customers for the firm.

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 Opening a new branch of Agora

The picture shows the launching ceremony of Agora's Chittagong outlet. Rahimafrooz
Superstores is the managing authority of Agora. Photo: Agora

(http://www.thedailystar.net/news-detail-140194)

4.2.4 Place/Distribution
The quality of products is not always enough as customers have to be convinced that they good
value for money. Managements responsibility is to select and manage the trade channels through
which the products will reach the right market at the right time and develop a distribution system
for physically handling and transporting the products through these channels (Stanton et all,
1991, pi 3). The following convenience Agora tries provide facilitate this process:

The location factor

The shop layout
Lighting and Ambience

The Location Factor

Each location chosen is characterized by an adequate and well off population base particular
where there is a high level of pedestrian traffic. Agora tries to provide enough space for
movement to the customers so they are encouraged to spend more time at the store. This is one of
the most important distinguishing factors that the make the stores different from the local
markets.

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The first branch of the super- market is at the Rifles Square at Dhanmondi. This area is unique,
as it is on of the busiest and well-connected areas region. The second branch of the super store
has been opened at Gulshan. It is as well connected as the Dhanmondi branch. The third branch
of super store has been opened at Mohgbazar. It is a more populated area Parking facility is
roughly as good although a few aspects of the Dhanmondi branch had to be sacrificed to
accommodate the basic requirements.

A very unique feature of the

Dhanmondi branch is that it also has a kids play area. tv is a small room enough to
accommodate a good number of small children. A female m caretaker is kept to take care of the
children in the area. This is another strategy to ensure that the working parents can spend as
much time as possible to do their shopping. It was not possible to do the same at Gulshan due to
space constraints.

The Shop Layout

All branches have similar window displays and shop layouts. The products are on open display
so that the members can select, examine, and compare the products. The products are kept
according to daily necessities of the customers chancing convenience.

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Lighting and Ambience

As shoppers look for better values Agora has added several services to broaden the apple,
including air-conditioning, childs play area and background music.

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 Chapter 5

5.0 Recommendation and Conclusion

5.1 Recommendation for the Agora

With single stores in Chittagong, Agora is a leader in superstore retail organizations. The
combination of quality and price under various brand name offers customers value for their
money. I have examined and evaluated the operations of Agora, Ltd including its strengths and
weaknesses. I recommend the following in order to ensure continued success for the future of all
Marks and Spencer stores:

Agora is still not being able to accommodate enough customers. This is a general view of
the customers surveyed, over half suggesting an increase. Unless this problem is solved
quickly, the competitors of the store may take away those unsatisfied customers from
Agora.
The costs of most perishables are very high compared to the general trend of the market.
No matter how the marketing manager tries to explain their reasons behind this high price
the customers would invariably tend to shift lo the sources that provide them at a lesser
price if they do not feel that the price they are paying is worth the convenience.
The number of staff at the store should be increased because the customer feels that they
spend more time to pay their shopping. This may be a source of more convenient of the
customer.
Find alternative sources to supply resources to Marks and Spencer stores abroad.
They should increase marketing efforts so that people can buy their products setting at
home
I think they should strengthen existing resources, add complementary resources, and
develop new resources.
They should make Evaluation of Current Objectives and Current Strategy.

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5.3. Conclusion
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 out lets
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 Kwik Save. 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!

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