Assignment On

Supply Chain Management System of

Shwapno Supper Shop.
Ahsanullah University of Science and Technology

Submitted To
Mr. Md. Hafez
Assistant Professor

Submitted by Md. Kamrul Islam Khan Shehab

ID 170102010
Program School of Business
Course Title Supply Chain Management
Course No BBA 411

Date of Submission: 15.04.2021

Letter of Transmittal
20th September, 2014
G.M. Shafayet Ullah
Lecturer
BRAC Business School
Subject: Submission of completed Internship Report.
Dear Sir,
I have completed the assigned internship report on „ACI LIMITED- SHWAPNO Lifestyle
Promotional Mix‟.
In completion of the report I tried to make it more informative so that the actual market scenario can
be drawn from the report. As well as tried to keep it much simple so that it becomes easily
understandable to you and to others.
Moreover, I will be glad to answer any questions that arise to its readers regarding any discrepancies
or inconsistencies.
Sincerely,
Shahed Ul Islam
1010410

Acknowledgement
Above all, I express my gratitude and thanks to the Almighty, who aided me with strength, and gave
me the wisdom and patience needed to complete this report.
I would also like to thank the generous contributions of my supervisors at ACI Limited, Md Iqbal
Hossain (Assistant Manager) and team of Category Development, for continuously supporting me
with all the necessities.
Additionally, I would like to thank my advisor, G.M. Shafayet Ullah, Lecturer, BRAC University
who believed that I could complete this task, upholding the standard and professionalism she expects.
His moral guidelines and joyful encouragement helped me to persevere.
At last, I thank my parents and other family members for their help, support and faith during the
exasperating period of collecting resources and analyzing data for the paper.

Table of Contents

Topic Page No
1. Letter of Transmittal Page-01
2. Declaration Page-02
3. Acknowledgement Page-02
4. Executive Page-03
5. Introduction Page-04
6. Background Page-05
7. Product Line of Pran Groups Page-06
8. Retort on Pran Frooto Page-09-10
9. Marketing: Creating & Catering customer valve Page-10-14
10. Mission, Vision & Objective of Pran Group Page-14
11. Marketing Process Page-15
12. Product, Services & Experiences Page-15-16
13. Branding Page-16
Packaging Page-17
Labeling Page-18
14. Service Page-20
15. Brand Building Blocks Page-20-32
16. SWOT Analysis Page-33-34
17. Budgeting Page-34
18. Control Page-35
Conclusion Page-35

Background Information
ACI group is one of the largest conglomerates in the country with businesses in
pharmaceuticals, agriculture, consumer products etc. However, SHWAPNO is a
business unit of ACI logistics. SHWAPNO is the largest retail company in
Bangladesh currently holding a share of 35% of the retail industry. Inaugurated in
2008, SHWAPNO now has over 46 outlets and 1600 employees spread across the
country.

SHWAPNO enjoys a higher amount of market share than its competitors such as
Agora and Meena bazaar. Agora and Meena Bazar entered this industry earlier
mostly because of visionary leadership and innovative strategies employed by the
company. Even though Meena Bazaar, Agora hold several advantages over
SHWAPNO. None of these companies have been able to emulate the success of
SHWAPNO‟s business model and market positioning. SHWAPNO‟s brief history
is fraught with challenges, successes, ups and down.

The organization structure of SHWAPNO is conventional. One of the advantages

SHWAPNO has over its competitors is the procurement department which is
responsible for directly sourcing vegetables, meat, fruits and grains directly from
wholesale markets. Other participants in the market rely on vendors for fresh
produce requirements, which make quality control extremely difficult.

The report discovers SHWAPNO‟s strategic marketing to capture market share, its
growth of customer base. Moreover, it focuses on the six promotional mixes to
judge its marketing strategies. At the end of the report results could be drawn on
how the promotional mixes were executed and was it worthy of implementation.
Along with this the report discloses the area of improvement in promotional
activity of SHWAPNO.

Current Status Of Swapno

SHWAPNO, a concern of ACI group established in 2008 is an integral part of the
overall ACI group. It represents and exemplifies ACI‟s commitment to bring about
a better Bangladesh and be a catalyst to change the lives of millions of individuals
for the better. SHWAPNO, with its 46 retails stores, situated in strategic positions
around Bangladesh is the largest retail chain in the country with over 35% markets
share of the growing 1500 crore taka retail industry. Retail industry in Bangladesh
has huge scope since only 2% of the entire population is served by the retail
industry. ACI‟s retail arm has carved an enviable name for itself in the market
place. Through its meticulous and analytical top management and innovative
marketing strategies, SHWAPNO has been able to achieve a dominant position in
the market place. Even though the other retail chain, Agora and Meena Bazaar
have had long established presence in the Bangladeshi market, neither has been
able to achieve the broad reach and brand equity that SHWAPNO has been able to.

This study will look into the varied strategies developed and implemented by
SHWAPNO to achieve its dominant position in the marketplace. Some of the
strategies were developed as a result of market dynamics, while others were
developed as a result of desperation. An in depth study of strategies used by retail
chains have not been done in Bangladesh previously. The increasing importance of
the retail industry to the Bangladeshi economy and its growing penetration into
many aspects of people‟s lives demands a thorough study on this subject matter.
 Mission, Vision, Goals, Objectives
Mission of Shwapno:

Our mission is to win the hearts and minds of our customers through continuous
innovation,
creation and delivery of our promise, “Everyday, a better life”

Shwapno Inc.’s corporate mission is “Everyday, a better life.” This statement

reflects the ideals of the company’s founder, ACI group. Strategic decisions in the
business are a direct manifestation of this mission statement, which is synonymous
to the company’s slogan, “Save money. Live better.” Based on this statement, it is
clear that Shwapno business strategies involve using price as a selling point to
attract target consumers. The significance of such a selling point is exhibited in
many of the company’s strategies.

Vision of Shwapno:

‘Our Vision is to be the Best Retailer where people love to work, shop and
invest.’

 To deliver success we have a clear set of values & beliefs.

 Impeccable integrity – We are honest, transparent and ethical in all our
dealings.
 Passion to win – We deliver what we promise by bringing the best in all of
us.
 Delightful experience -We win the hearts and minds of our employees and
consumers by offering relevant quality, value and service.
 Living an enterprise culture – We believe in trust, truth and teamwork.
 Making a better world – We compassionately contribute to the community
we live in.
 Continuous improvement – We constantly learn and innovate to create new
paradigm.
  Count every paisa – We treat every taka spent as our own for creating value
for our
Goals of Shwapno:
SHWAPNO is the largest retail company in Bangladesh currently holding a share
of 35% of the retail industry. • Quality maintenance and improvement.
Satisfied customers.
Hold on to the current customers and again gain customer loyalty.
Gain competitive advantage over all the competitors.
To double sales and expand capacity every 11-12 years.
Inaugurated in 2008, SHWAPNO now has over 46 outlets and 1600 employees
spread across the country.

Product and Services of Shwapno

Products
Shwapno's item portfolio comprises of more than 25000 stock keeping units
(SKU). Presently these items
are isolated into four business divisions: Grocery, Company Goods, Non-
sustenance dissimilarity (NFD)
and Restaurant. NFD was acquainted with raise the gross benefit of the plan of
action thus far it has
accomplished sublime outcomes. Every one of the items offered by Shwapno are
partitioned in to 24 ace
classifications as displayed in Table 1:

Business Divisions Master Categories Sales Contribution (%)

Nutrition 22.6

Grocery Primary agricultural 16.4

product
Perishables 5.5

Raedy food 12.8

 Self caring product 9.4

Dairy food items 5.8

Company Products
Beverage and taobacco 5.6

Kitchen additives 3.3

Home care 3.2

Baby caring item 1.8

Baby Care 1.5

Stationeries 0.1

Home Made < 0.05

Medicine < 0.05

Life Style 6.4

Electronics & Appliances 1.8

Home Accessories 1.6

Gift & Toys 0.9

NFD Home gadgets 0.5

Accent & Decors 0.2

Infotainment 0.2

Furniture 0.2

Vehicles Currently not in operation

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Flowchart of Supply Chain Management Sustem of Shwapno

0.3

Distribution refers to the steps taken to move and store a product from the supplier
stage to a customer stage in the supply chain. Distribution occurs between every
pair of stages in the supply chain. Raw materials and components are moved from
suppliers to manufacturers, whereas finished products are moved from the
manufacturer to the end consumer. Distribution is a key driver of the overall
profitability of a firm because it affects both the supply chain cost and the
customer experience directly. In the case of Shwapno supper shops, distribution
allows the company to provide high availability levels of relatively common
products at a very low cost. In the case of Seven-Eleven Japan, effective
distribution provides a very high level of customer responsiveness at a reasonable
cost.
At the highest level, performance of a distribution network should be evaluated
along two dimensions:

2 . Cost of
1. Customer
meeting
needs that
Customer service consists of many components, we focus on those measures that

customer
are influenced by the structure of the distribution network. These include:

are met
needs
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Response time is the amount of time it takes for a customer to receive an order.
Product variety is the number of different products/configurations that are offered
by the distribution network. Product availability is the probability of having a
product in stock when a customer order arrives. Customer experience includes the
ease with which customers can place and receive orders as well as the extent to
which this experience is customized. It also includes purely experiential aspects,
such as the possibility of getting a cup of coffee and the value that the sales staff
provides.

Supply chain costs affected by network structure:

• Inventories
• Transportation
• Facilities and handling
• Information

Design Options for a Distribution Network

• One of six designs may be used
• Manufacturer storage with direct shipping
• Manufacturer storage with direct shipping and in-transit merge
• Distributor storage with carrier delivery
• Distributor storage with last-mile delivery
• Manufacturer/distributor storage with customer pickup
• Retail storage with customer pickup

In this option, product is shipped directly from the manufacturer to the end
customer, bypassing the retailer (who takes the order and initiates the delivery
request). This option is also referred to as drop-shipping, with product delivered
directly from the manufacturer to the customer. The retailer, if independent of the
manufacturer, carries no inventories. Information flows from the customer, via the
retailer, to the manufacturer, and product is shipped directly from the manufacturer
to customers as shown in customers.
The biggest advantage of drop-shipping is the ability to centralize inventories at
the manufacturer. A manufacturer can aggregate demand across all retailers that it
supplies. As a result, the supply chain is able to provide a high level of product
availability with lower levels of inventory. A key issue with regard to drop-
shipping is the ownership structure of the inventory at the manufacturer. If
specified portions of inventory at the manufacturer are allocated to individual
retailers, there is little benefit of aggregation even though the inventory is
physically aggregated.
Shwapno supper shop also try to best product or service provide every time there’s
customer, so that they have best quality manufacture storage with direct shipping
systems. Shwapno try best quality product or service low price because they
colleting huge customer their outlets and high seals product earn highly profits.

DISTRIBUTION CHANNEL

The distribution channel is the channel through which the products and services
reach the customers. Shwapno follows different distribution channels inside
Dhaka. Products are supplied to different channels from one main distribution
cen-ter. So, Distribution structure forms based on Central Distribu-tion center,
divisional Distribution center, sales unit & retail outlet etc. For this reason, one
sales channel has several distri-bution channels to sell articles and services
differently. There are six distribution channels to distribute the goods from Cen-
tral Distribution Center (CDC) to retailer customers, Homedelivery sales,
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wholesale customers, institutional customers, clearance sales and internal sales
or stock transfer as shown in

Distributor Storage with Carrier Delivery

Retail Storage with Customer Pickup

Products are stored at a manufacturer or a distributor, which ships the order to locations
for customer pick‐up. 6 Retail storage with customer pickup: goods are stored at retail
stores, and customers need to visit the retailer to obtain their order
 Service Factor Performance
Response time Same-day (immediate) pickup possible for items stored
locally at pickup site.
Product variety Lower than all other options.
Product More expensive to provide than all other options.
availability
Customer Related to whether shopping is viewed as a positive or
experience negative experience by customer.
Time to market Highest among distribution options.
Order visibility Trivial for in-store orders. Difficult, but essential, for online
and phone orders.
Return ability Easier than other options because retail store can provide a
substitute.

Shwapno supper shopUsing: push vs pull process

Supper market or retail shops always using their product huge sales applying push
and pull both process, because some times apply push and sometimes need pull .
In simple terms push marketing involves pushing your brand in front of audiences
(usually with paid advertising or promotions). 
Pull marketing on the other hand means implementing a strategy that naturally
draws consumer interest in your brand or products (usually with relevant and
interesting content).

Management of six supply chain drivers

Management of the six supply chain drivers provide a useful framework for
thinking about supply chain capabilities. Decisions made about how each driver
operates will determine the blend of responsiveness and efficiency a supply chain
is capable of achieving. The six drivers are illustrated in the diagram below:

Facilities

The physical locations in the supply chain network where product is stored,
assembled, or fabricated

Inventory

All raw materials, work in process, and finished goods within a supply chain

Transportation

Moving inventory from point to point in the supply chain

Information

Data and analysis concerning facilities, inventory, transportation, costs, prices, and
customers throughout the supply chain

Sourcing

Who will perform a particular supply chain activity

Pricing

How much a firm will charge for the goods and services that it makes available in
the supply chain
DRIVERS ROLE IN SC, COMPETITIVE STRATEGY AND COMPONENTS IN
THE DRIVERS DECISION:

Driver Role in SC Role in Components of the

Competitive driver’s decision
Strategy
Facilities •Flexible.Dedicated •Economies of scale •Location
or combined •Higher numbers or •Capacity
•Product focus or smaller facilities •Facility-related Metrics
functional focus

Inventory • How much/many? •Is it the cost? (JIT) •Cycle,Safety and

•Cost Seasonal inventory
Or •Availability of the
•Quantity? product
•Inventory-related metric
Transportation •Faster mode is •Faster mode = •Designof transportation
good but will incur greater network
higher cost responsibility •Choice of transportation
mode
•Transportation-related
metric
Information •enable efficient •Push vs pull
•allows coordination flow of information •Coordination and
of all stages information sharing
•Sales and operations
planning
•Enabling technologies
•Information-related
metrics
Sourcing •crucial for efficient •Fully vertically •In-house or outsource
supply chain •‘Virtual •Supplier selection
integration’ •Procurement
•Sourcing-related metrics
Decision Framework of supply chain management system of
Shwapno
Shwapno supper shops has adopted a specific supply system management for its
customers through which Shwapno buys and sells all types of products to its
customers through a specific supply process so that maximum service can be
provided to the customers in terms of product purchase and sale.  This framework
enables the customer to buy the product they need very quickly and know the
price. Shwapno has framework of supply chain management system are:

The goal of a supply chain strategy is to strike the balance between responsiveness
and efficiency that fits with the competitive strategy. To reach this goal, a company
must structure the right combination of the three logistical and three cross-
functional drivers discussed earlier.

Individual of Shwapno supper shop:

For each of the individual drivers, supply chain managers must make a trade-off
between efficiency and responsiveness based on interaction with the other drivers.
The combined impact of these drivers then determines the responsiveness and the
profits of the entire supply chain.
We provide a visual framework for supply chain decision making in most
companies begin with a competitive strategy and then decide what their supply
chain strategy ought to be. The supply chain strategy determines how the supply
chain should perform with respect to efficiency and responsiveness. The supply
chain must then use the three logistical and three cross-functional drivers to reach
the performance level the supply chain strategy dictates and maximize the supply
chain profits.
Although this framework is generally viewed from the top down, in many
instances, a study of the six drivers may indicate the need to change the supply
chain and potentially even the competitive strategy.
Consider this framework using Shwapno as an example.
A Framework for Structuring Drivers

Competitive strategy of Shwapno:

Shwapno’s competitive strategy is to be a reliable, low-cost retailer for a wide
variety of mass-consumption goods. This strategy dictates that the ideal supply
chain will emphasize efficiency but also maintain an adequate level of
responsiveness. Shwapno uses the three logistical and three cross-functional
drivers effectively to achieve this type of supply chain performance.
With the inventory driver, Shwapno maintains an efficient supply chain by
keeping low levels of inventory. For instance, Shwapno pioneered cross-dockigg,
a system in which inventory is not stocked in a warehouse but ratherlsSli1pped to
stores from the manufacturer. These shipments make only brief stops at
distribution centers (DCs), where they are transferred to trucks that make deliveries
to stores. This significantly lowers inventory because products are stocked only at
stores, not at both stores and warehouses. With respect to inventory, Shwapno
favors efficiency over responsiveness.

Transportation system of Shwapno:

On the transportation front, Shwapno runs its own fleet, to keep responsiveness
high. This increases transportation cost, but the benefits in terms of reduced
inventory and improved product availability justify this cost in Wal-Mart's case. In
the case of facilities, Shwapno uses centrally located DCs within its network of
stores to decrease the number of facilities and increase efficiency at each DC.
Shwapno builds retail stores only where the demand is sufficient to justify having
several of them supported by a DC, thereby increasing efficiency of its
transportation assets. To utilize information in the supply chain, Shwapno has
invested significantly more than its competitors in information technology. As a
result, Shwapno is a leader in its use of the information driver to improve
responsiveness and decrease inventory investment. Shwapno feeds demand
information across the supply chain to suppliers who manufacture only what is
being demanded. The supply chain's ability to share demand information has
required large investments, but the result is an improved supply chain in terms of
both responsiveness and efficiency. With regard to the sourcing driver, Shwapno
identifies efficient sources for each product it sells. Wal-Mart feeds them large
orders, allowing them to be efficient by exploiting economies of scale.

Pricing of Shwapno:
Finally, for the pricing driver, Shwapno practices "every day low pricing" (EDLP)
for its products. This ensures that customer demand stays steady and does not
fluctuate with price variations.
The entire supply chain then focuses on meeting this demand in an efficient
manner.
Shwapno uses all the supply chain drivers to achieve the right balance between
responsiveness and efficiency so that its competitive strategy and supply chain
strategy are in harmony.
We devote the next six sections to a detailed discussion of each of the three
logistical and three cross-functional drivers and their roles in the supply chain.

Competitive Strategy
Facilities are a key driver of supply chain performance in terms of responsiveness
and efficiency. For example, companies can gain economies of scale when a
product is manufactured or stored in only one location; this centralization increases
efficiency. The cost reduction, however, comes at the expense of responsiveness,
as many of a company's customers may be located far from the production facility.
The opposite is also true. Locating facilities close to customers increases the
number of facilities needed and consequently reduces efficiency. If the customer
demands and is willing to pay for the responsiveness that having numerous
facilities adds, however, then this facilities decision helps meet the company's
competitive strategy goals.
SWOT Of Shwapno
Strengths:

1. Major players have deep pockets allowing investment in supply chain

infrastructure, outlets and promotion.
2. Bulk buying to some extent allows lowers and deeper discount for consumers.
3. The sector demand is increasing as the growing middle-class prefers the
convenience of supermarkets.
4. As the sector enters its second decade, a certain level of sector specialization
has developed with a local supply chain model and efficient middle
management.

Weaknesses:
Due to huge number of items sold supermarkets have to rely increasingly on
middle-men and Dhaka based market hub, especially for perishables.

Although some supermarkets have 10-20 outlets, most players have less outlets to
benefit from bulk buying.

Although the contract farming model has been tried by major supermarkets like
Agore and Meena Bazaar, it has not seen much success as yet.

Opportunities:

1. Urban consumers are more conscious of the prevalence of contaminated

perishable and protein items e.g. vegetable, fruits and fish; allowing
supermarkets to capture market share.
2. Increasing per capita income has made consumers less price sensitive and
focused toward product quality.
3. Some major supermarkets are starting to build a robust contract farming
model which has prospect for scalability and is replicable.

Threats:
Political unrest and frequent disruption by law enforcement agencies disrupt
supply chain hamper cost competitiveness.

Rapidly increasing real-estate rental costs will add to total expansion costs and
deter supermarkets to expand. Supermarkets market share constitute only 2% of
the total market and mainly concentrated in unban areas. Intense price competition
among existing players may hamper sector growth.

Recommendations Improving Supply Chain Management Of Shwapno

Shwapno supper shop improving their supply chain management systems major
points below:

Recruit employees for the current vacancy:

In SHWAPNO, interview session for new candidates has been a common scenario.
The CRM, E-Commerce and buying team should recruit more people for effective
working. For example: The company needs more people in their lifestyle
departments. Because in this sector most of the employees need to do field
working, planning on the order placement and product assortment. The lifestyle
department is the small department in the organization. 3 employees and two
designers are working on this department. There is always extra pressure for work
on the shoulder of the employees.

Re-evaluate their pricing strategy for Lifestyle products:

SHWAPNO is aiming to provide to the best product with the best price. This
garments sector is competitive because the consumers can buy from the others
boutiques shop. Yellow, Infinity, Ecstasy, Kay Kraft & Aarong are well known
brand for their exclusive design and consumers will not mind to pay a little high
for the fashionable outfits. If SHWAPNO want to be more competitive in this field
then they need to lower their price a little bit.

Advanced security system in the outlet:

SHWAPNO often provides different type of free gift items to their customers.
The record of the free gift items is not properly maintained because it does not cost
any value to the profit of the company. Free gift item often get stolen from the
outlet. Management of SHWAPNO needs to invest more on the security system.
Software Updated:

Software need to be updated and should be more efficient. Sometimes it takes too
long to get information from the servers. SHWAPNO uses EPS software for
recording information about their loyal customers, up-to-minutes sales data. When
employees have logged on form different station and gives instruction for different
data. The servers could not handle the load and it shows error in downloading the
files. During the internship programs, I need to work with the EPS software. We
have used the software for getting information about the sales-amount of specific
suppliers’ products. Sometimes it took 1 to 2 hours for downloading the
information about one supplier. As a result, the suppliers need to wait longer to get
sales information about their products. If the software is updated, operation will be
executed faster.

More marketing:

SHWAPNO recently launched online delivery service. Some people may have no
knowledge of it. SHWAPNO need to advertise their brand with more popular
actors and actresses. In their EID Collection photo-shoot, they endorse new faces
rather than featuring well known actors and actresses. ACI logistics limited has no
separate website for their company. SHWAPNO provide their information through
Social networking site (facebook).

Focused on working:

Employees create article, barcode for every products. At the time of new product
collection, unique articles are needed to be created for the new products. For
example: T-shirts with Four different sizes will have four different articles for the
product. Trader price value, MRP value and supplier name are also needed to be
recorded. Sometimes, change in TP value, MRP value and Vendor can really make
a huge loss for the organization. During our internship, when we have given to
different article to created, the employee had misplaced the supplier names. It
could make a huge difference in the sales amount for the supplier if remain
unnoticed. So, the employees need to do their work sincerely to avoid this kind of
mistakes.

Conclusion
Initially during its inception, SHWAPNO had a rocky start. Only under the stellar
and inspiring leadership of the current Executive Director Sabbir Hasan Nasir has
SHWAPNO been making inroads to realizing the dreams and aspirations of its
founders.

Much of SHWAPNO recent success rests with the innovative business strategies
employed by the company. The company entered the industry much later than its
main rivals and even with this handicap they have been able to capture by far the
largest market share (35%). The retail industry is undergoing massive changes.
SHWAPNO needs to remain dynamic to secure its present dominance in the
market into the future. However, SHWAPNO faces many challenges in the near
future. Specially they big plan for their lifestyle products as it is giving highest Gp
then other category. Though they are doing some promotional activities for
lifestyle but they should come up with even more ideas for their promotional mix.
If SHWAPNO is able to overcome all the difficulties mentioned above, there is no
doubt that within a short period time, the company will have insurmountable
advantages in the market.

The only threats to SHWAPNO dominance in the future will come from foreign
retailers trying to encroach on the Bangladeshi market.