Daraz Thesis MBA 1
Daraz Thesis MBA 1
Daraz Thesis MBA 1
Marketing in MBA
Brac University
07th June, 2021
I
Declaration
1. The thesis submitted is my/our own original work while completing degree at Brac
University.
2. The thesis does not contain material previously published or written by a third party,
except where this is appropriately cited through full and accurate referencing.
3. The thesis does not contain material which has been accepted, or submitted, for any other
____________________MD.MAHMUDUL HASAN____________________
Student Full Name
Student ID: 18264047
II
Approval
The thesis titled “The Role of Digital Marketing: A Study on Online Platform Based
Companies in Bangladesh ” submitted by
of Fall,2021 has been accepted as satisfactory in partial fulfillment of the requirement for
the degree of MBA on 07th June 2021.
Examining Committee:
Supervisor:
(Member)
_______________________________
Dr Rafiuddin Ahmed
Faculty BRAC University
Co Supervisor:
_______________________________
Shilpi Das Faculty BRAC University
III
Ethics Statement
IV
Abstract
E-commerce has ushered in a new era of shopping trends in Bangladesh. This has opened up
new trends for customers as well as many business opportunities. In this report, I have tried
to bring some information about digital marketing in Bangladesh and a brief description of
the company of Daraz Bangladesh Limited. At the beginning of the report in Chapter 1, I
gave a brief description of the e-commerce and online shopping trends in Bangladesh. In the
second chapter I put the literature review of e-commerce and digital marketing. In the next
part of the third chapter, I have added the summary of the company of Daraz Bangladesh
Limited. I have added the type of their product, payment method, website summary. In
Chapter 4, I described my theoretical framework for my thesis period. In Chapter 5, this
report contains the methodology, limitations, and research objectives. Chapter 6 contains the
results and explanations of the study. Moreover, recommendations have been added in this
chapter. Conclusion. Throughout the Through report, I have tried to find out what kind of
service customers expect from e-commerce and what the terms of service are in this sector. It
is so important to develop a service-oriented business to satisfy customers to meet their needs
and wants.
V
Dedication (Optional)
A dedication is the expression of friendly connection or thanks by the author towards another
VI
Acknowledgement
First, I want to thank the Almighty God for everything. With the blessings of almighty and
my parents, I successfully completed this report after completing my thesis. Next, I would
With this I have to thank Dr. Shilpi Das, under whose co-supervision I have completed my
thank my other classmates from the 2021 MBA batch of BRAC University's BD for their
guidance and support during the thesis program and for teaching me to face the professional
world.
Lastly, I am grateful to BRAC University BD for the reason i am standing here on the eve of
I have tried to complete this report with complete dedication. Any comments or suggestions
VII
Table of Contents
Declaration ......................................................................................................................... II
Ethics Statement................................................................................................................ IV
List of Figures.................................................................................................................... XI
3.4.1 Product 15
3.4.2 Price 15
3.4.3 Place 16
3.4.4 Promotion 16
VIII
Chapter 4 [Methodology] ....................................................... Error! Bookmark not defined.
4.2 Methodology 20
4.3 Limitations 20
Chapter Five
5.8 Pricing 25
5.9 Security 26
5.11.1 Efficiency 27
5.11.2 Fulfillment 27
5.11.3 Reliability 27
5.11.4 Privacy 27
5.11.5 Responsiveness 27
5.11.6 Compensation 27
5.11.7 Contact 27
5.11.8 Adaptability 27
Chapter Six
IX
6.1 Conclusion 28
References 28
Survey 31-32
Survey Result 33
References.......................................................................................................................... 34
X
List of Figures
List of figure
XI
List of Acronyms
FB FACEBOOK
XII
Chapter One
Introduction
Digital Marketing
Internet banking
Teleconferencing
Electronic tickets
Social networking
Instant messaging
Pretail
Digital Wallet
Supply chain and logistics
Payment systems
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Print on demand
E-commerce was launched in Bangladesh a few years ago and it became popular around
2013, so many e-commerce companies started their journey. Most of them started as online
shops. There were both domestic and foreign companies. Now there is a good environment
for e-commerce in Bangladesh and even the government of Bangladesh is pushing for its
growth. The total number of Internet users in Bangladesh is 21,439,070 which is 13.2% of
the total population. So there is a huge potential market for e-commerce growth. Market male
customers search for "clothing and footwear" online and female customers search for
"jewelry and watches". Reducing Internet spending is driving the growth of e-commerce. The
success stories of e-commerce growth support, reliable cash-on-delivery options, the addition
of Skype and Viber to customer service and the success of Facebook stores have been
published for consideration of existing and future market entry. (Rahman, 2015)
Daraz Bangladesh Ltd a venture of Rocket data started its journey in Bangladesh in
August 2013.
It is a common online marketplace for sellers and buyers. It promotes branded products to
customers. It basically plays the role of both B2B and B2C. Kemu Bangladesh Limited is
another initiative of Rocket Internet. . It is also a digital marketing media. One big difference,
however, is that anyone at Kemu can use the Kemur platform and sell their products, but at
Daraz it encourages new brands and sells products that already have brand value in the
market. In recent times, Daraz and Qaimu have consolidated their business to capture more
market share. Now they are called Daraz Group.
In this research paper I have tried to come up with the business policy of Daraz BD and how
they try to attract its customers using several online media. I also did an online survey about
what customer expectations and perceptions are about digital marketing. Since ensuring good
quality service is the most important thing nowadays, I have tried to figure out what can be
ensured in this regard.
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Chapter Two
Literature Review
2.1 Literature
3 Necessary variables, which may affect the objectives of the consumer: (a) the convenience
of the shopping channel, (b) the characteristics of the product type and (c) the value of the
product. The results indicate that customers want to engage in digital marketing, depending
on the benefits and the type of product. When consumers feel that offline shopping is
inconvenient, their purpose of shopping online is even greater. Also, the intent of digital
marketing is greater when consumers see the product as a search product rather than an
experienced content (Chiang, 2003).
Customers also expected that digital marketing would deliver products faster than offline
stores and deliver them on time at their convenience; Reasons to keep customers satisfied
using the Internet as a shopping tool are time and reliable delivery (Ahn, Ryu and Han, 2004)
). Brookegen and Huijing (2009) hoped that the relationship between the time and effort
savings and the purchasing objectives would become stronger; Customers will focus more on
saving time and effort once they realize how less time and effort it takes to shop online.
Liu, He, Gao, and Jae (2006) suggested that in order to save customers time and fully reflect
the benefits of digital marketing, e-marketers need to further strengthen their website
transaction capacity and ensure that all activities can be done online.
(Source: http://www.ukessays.co.uk/essays/marketing/online-shopping.php)
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(Forbes, 2014).
In 2005, the overall Internet and e-commerce adoption rate in South Asia was lower than in
other parts of the world (Kshetri and Dholakia, 2005). However, this user change has taken
place over the last 10 years with the number of Internet users and thus, the number of people
involved in various types of e-business has increased rapidly (Abbasi, Chandio, Somo, and
Shah, 2011). A recent McKinsey report (2014) estimates that the number of global Internet
users will be between 500-900 million between 2017 and 2017, and includes a number of
South Asian countries, particularly Bangladesh. These results echo the KPMG (2012) report
on the growth of the IT sector in Bangladesh, especially since 2010 when its freelancer
community contributed about ০০ 600 million to exports. It has significantly aligned the
names of some of the site's top freelance workplaces, such as Odesk, Elance.
The use of mobile internet plays an important role in the spread of e-commerce in
Bangladesh. Tables 1, 2 and 3 then show Bangladesh's declining bandwidth costs, mobile
data costs for major mobile operators in Bangladesh and a comparison of mobile data prices
with developed e-commerce market countries. Although the percentage of total internet users
in Bangladesh is considered to be lower than some other countries (Khan, Hossain, Hasan,
and Clement, 2012), the online population is growing due to the reduction in the cost of
internet bandwidth.
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Chapter Three
Daraz Digital Marketing is a marketplace where buyers and sellers meet. Daraz offers its
customers a wider selection of products. Everything from fashion to general merchandising is
available on the Daraz website. Customers can visit their website www.daraz.com.bd and
choose the products of their choice without any hassle and the products will be delivered in a
few days. Daraz arranges their products under 2 main categories Fashion and GM (General
Merchandising). Customers can search for the desired products under the following
categories
Computing
Men’s Fashion
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Women’s Fashion
Appliances
Daraz constantly modifies their departments and product lines to meet customer needs. Daraz
provides cash to customers in the delivery system. In addition, customers can use their cards
to make payments to their drivers when goods are delivered. If customers want to pay by
card, they will have a rider's card swiping machine with them. Daraz does not offer online
purchases for some problems. For this reason Daraz is missing some orders. Daraz also
provides a 7 day return policy. Under certain conditions, customers will be able to return the
product and get a refund.
In July 2016, Daraz and Qaymu came together to strengthen their position in the growing
Bangladesh market. These two companies are working together to capture more market
share. Now they are called Daraz Group. This integration has also taken place in Pakistan
and Myanmar.
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“Both Daraz and Qaymu have built successful operations in their respective markets,” said
Bajrek Mikkelsen, co-CEO of Daraz Group. The addition is now the next step in providing
our vendors with the best possible solutions for developing their online business and
capitalizing on the integration across platforms.
Price
Place
Promotion
3.4.1 Product
Daraz does not produce any products. Daraz is an online market place where different sellers
can put their products on Daraz website. Vendors need to register to keep their products.
These vendors are called vendors. Daraz and the sellers come to a mutual agreement about
the commission. There are about 200 vendors in Daraz who sell various products like fashion
items, mobiles, appliances. Customers can view the Daraz website and choose products.
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Figure 2 Daraz Products
There are several product categories available on the Daraz website such as men's and
women's fashion, mobiles and tablets, equipment, health and beauty etc. There are about
52000 products available on the Daraz website.
3.4.2 Price
Daraz sets competitive prices based on customer expectations. But due to the volatile and
under-monitored market, most companies set prices to maintain and increase their sales. In
fact it comes up as a bad habit. Low-investment firms cannot survive in this market. So the
significance of the price is noticeable in the current market. Basically the sellers have set the
price. Daraz product sales commission earned. The prices of the products change during any
promotion. Customers have complained that Daraz offers higher prices than offline stores.
This is simply due to Daraz adding commission to the price.
3.4.3 Place
Daraz is an online marketplace so it has no physical store. Daraz sells products through its
website www.daraz.com.bd, sellers upload their products to the website and buyers buy from
the website. Dara Z launched a Bangla website a few months ago. So, Daraz has mobile
applications that customers can install on their mobile phones and make purchases at any
time.
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Figure 4 Desktop version Figure 3 Mobile version
3.4.4 Promotion
Daraz mainly focused on online marketing rather than offline marketing. Facebook, Google
Adwords are the main promotions of Daraz. It has set target groups to prevent promotional
activities. In addition, Daraz has also carried out activation projects at several universities
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Daraz is also affiliated with Mushfiqur Rahim (Captain Bangladesh Cricket Team)
Daraz has brought a new era in the e-commerce sector of Bangladesh. It has brought the
concept of "Black Friday" to Bangladesh "Fata Fati Friday". Last year it was a great success.
In this promotion Daraz gives the biggest discount with great business. Daraz has succeeded
in setting new shopping trends
Another successful promotion of Daraz is Mobile Week Week. In this campaign, Daraz
brings about the great bus
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3.5 Perceived pricing
The perceived value can be defined as the genetic perception of what the product produced is
or has been dedicated to (Jaithamal, 1988). According to Zaithamal (1988), consumers do not
always remember or know the actual price of a product, but rather they encode the subject as
"expensive" or "cheap". Thus, it suggests that the customer’s perception of price may differ
from the price point of view. The classical economic definition of the price paid for a product
is often limited to financial units (Corda and Snooze, 2007; Agarwal & Tees, 2001; Oh,
1999). However, this notion of price is very simple because the overall assessment of
customer sacrifice may be influenced by many other factors (Corda and Snooze, 2007). Thus,
it is important to investigate other factors that may cause the customer to give up some of the
products. Scholars have argued that the sacrifices made by consumers include not only
nominal monetary value, but also all other financial costs incurred during product acquisition
and use (Zaithamal, 1988; Snooze, Pisnik and Mummel, 2004). Non-financial sacrifices
include the cost of research, physical effort or learning, and the cost of learning (Zaithamal,
1988; Riviar, 2014). When customers can’t find the product on the shelf, travel to get the
product, try to assemble the durable product and spend a time preparing the packaged well,
the sacrifice is acknowledged. Non-financial sacrifices are crucial because they enhance
personal valuation in price perception (Jaithamal, 1988). Non-financial sacrifices may play a
more important role than financial sacrifices (Wang, Lo, Chi, and Young, 2004). Thus, this
study will include the non-financial aspect of abandonment in the investigation of the
estimated value.
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Chapter Four
Methodology
The primary purpose of this paper is to find out the quality of service of e-commerce
companies in Bangladesh. It is clear from the Facebook pages of several companies that
customers are not satisfied with the quality of service of online shops or e-commerce
companies.
In this paper I have tried to sort out the issues behind this issue and how to address these
issues. There were some limitations because I do not have access to all the data of the
companies. So from customer feedback, from surveys I tried to merge all things.For this
research I had to work on market behavior, market competition, market growth, etc.
4.2 Methodology
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4.2.1 Sampling method & sample size
In this paper I have applied the non-probability sampling method. The total sample size was
30 amples
The Google form is used to survey and interpret data. The survey questionnaire was prepared
based on the variables of digital marketing service expectations
4.3 Limitations
The company could not provide all the information of the companies due to the
constraint in the company policy
Unable to do in-depth research due to time constraints
Analyzing 30 people doesn’t just come with a real view of the market. However, due
to lack of time and opportunity it was not possible to work with a larger sample size
All those offers were book based and I have experience working in the company.
There may be other ways to do better service-oriented digital marketing or e-
commerce business.
Moreover the survey was conducted in that part of the people who have access to high
technology and high speed internet but I could not reach other people who do not
have this facility. So their choices can be very different and this could turn this report
into another point.
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Chapter Five
In the survey I chose 30 random people. They put their opinions on the survey questioners.
They have measured the quality of digital marketing services in Bangladesh. The results and
explanations are given below:
Most of the ages in the study were between the ages of 20-25. This age group has the highest
number of internet users. Users have several choices for their digital marketing. But usually
their main priority is the quality of the product
This age group is a huge potential market for e-commerce. So companies need to focus on
them and provide good quality service.
This refers to what is the most important factor of Digital Marketing. Most of them
marked on time product quality.
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Figure 16 Survey Result: Service Factors
Product quality is a burning issue for digital marketing. Companies need to ensure product
quality in order to gain the trust of customers. Furthermore, 30% have identified digital
marketing as their main priority in the time delivery factor. So not only good quality
products, companies also need to provide on time delivery service as promised.
Companies should produce its response identification. Timely action should not be taken on
new advertisements but should not be answered by its customer. Some unfortunate customer
can communicate with some grief even if it is not in 2-3 days. Report is followed as 2-3
years, schedule 7 time benefit. This is a vital factor for communication and customer trust.
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5.4 Preference of Digital Marketing
Most consumers prefer digital marketing to save time. You have to go to one store after
another instead of going to offline stores and traffic jams. Shopping online is easy. .7 66..7%
of people prefer digital marketing to save time.
So 23.3% of people think that shopping online is easy and 10% think that they can see a large
collection of products from online stores and choose the products of their choice.
Most people think that their cash should be disbursed in order to make payments. This is the
easiest way. Additionally, they may not feel secure when making payments online. 80.2% of
people referred for cash on delivery
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Figure 19 Survey Result: Payment Method
Because of any service failure like poor product quality, failure etc companies need to offer
several service recovery options to the customers.
75% of people want a product exchange policy to restore service. This can happen
when the product is damaged or inferior or damaged during use before the warranty
date. Companies need to work smart to restore customer confidence in this position.
They need to make 100% effort to ensure service recovery. In addition, 25% of
customers want a money back policy as a service recovery.
5.7 Digital Marketing perception.
Most people have identified the neutral position of the digital marketing experience in
Bangladesh.
46.7% of people are not satisfied with digital marketing services. Delivery on time,
such as the quality of service of the companies they may be missing key issues. Only
3.5% think that all companies are providing good quality services.
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Figure 21 Survey Result: Perception of Digital Marketing
Digital marketing companies offer higher prices than offline stores. So customers
have a bad idea about this. Sometimes it’s more than an offline store. Moreover, e-
commerce companies have a lot of price variations such as if the price of a
smartphone is 17000tk on one website then the price of the right device can be
20000tk on another website.
This is mainly due to the seller's choice and the amount of commission. However,
this practice needs to be stopped. Companies and vendors need to come to a mutual
understanding to offer better prices for customers.
5.9 Security
Most people don't think shopping online is safe. This is why most customers prefer a cash-
on-delivery system. Online payments mostly came with sales and customers. In fact it could
bring in more customers from abroad. Shopping 3.3% of customers do not rely on online
shopping.
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Figure 23 Survey Result: Digital Marketing Security
There are several big players in the market. Of these, 41.4% chose Daraz for their digital
marketing. Kemu has 31%, Azcardial and Pikabu 13.8% digital marketing priorities. All
these companies need to ensure good service quality for their customers.
Digital marketing companies have a great potential to attract more customers, but there are a
few reasons to make sure that it is a good place for customers.
5.11.1 Efficiency
5.11.2 Fulfillment
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Companies need to make sure they can meet customer needs. Hey we need to ensure good
quality products on time and after sales service.
5.11.3 Reliability
Companies need to make sure they are offering the right after sales service to the customer.
They need to be followed up.
5.11.4 Privacy
5.11.5 Response
Companies need to make sure that customers can reach them at any time. Customers may
encounter any service error so companies hire people to provide appropriate service recovery.
5.11.7 Communication
Companies need to hire people with whom customers can communicate. Customers should
easily communicate with the responsible person without any difficulty.
5.11.8 Adaptability
Companies need to learn from mistakes. They need to respond quickly to any service loss.
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Chapter Six
6.1 Conclusion
Since I came from an e-commerce and marketing major I have always wanted to work in an
e-commerce company where I can use my little knowledge about marketing and e-commerce.
Luckily I was selected to work with Daraz Bangladesh Limited which is well known for
promoting e-commerce. Moreover, it is an initiative of Rocket Internet that develops new
business ideas. There are a lot of talented people working around me. Every day I am
learning new things about how to make decisions, how to work in a team, how to recover
from a mistake, how to bring the best from one. They offered me a job after finishing my
thesis period and I accepted it and I want to bring a successful career from this opportunity.
In this research paper I have tried to merge my knowledge, people’s opinions, scholarly
articles, what I have learned from my university. In fact, no matter what business e-
commerce or digital marketing is, it should be more service-oriented. Companies need to
make sure they provide the best service to the customer. There are a number of companies
that have anticipated customer demand. There are huge opportunities in e-commerce in
Bangladesh. Just need to work properly and ensure customer satisfaction. Which seems to be
the e-commerce revolution in Bangladesh.
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1. References
2. http://www.internetlivestats.com/internet-users/bangladesh/
3. http://www.miva.com/blog/the-history-of-ecommerce-how-did-it-all-begin/
www.daraz.com.bd
6. Abbasi, M. S., Chandio, F. H., Soomro, A. F., & Shah, F. (2011). Social influence,
http://dx.doi.org/10.1108/17410391111097410
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