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1 AUTHOR:
Mohammad Alamgir Hossain
North South University
24 PUBLICATIONS 29 CITATIONS
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Case Analysis
Vision
18(2) 137143
2014 MDI
SAGE Publications
Los Angeles, London,
New Delhi, Singapore,
Washington DC
DOI: 10.1177/0972262914528599
http://vision.sagepub.com
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Case Analysis l
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Case Analysis ll
Introduction
Right Moves
Sadakalo first introduced identical design concept for
family members by coming up with dresses with similar
design theme for both parents and children, and also for
couples. The team of designers always makes reasonable
effort to collect design ideas from various sources and
brings constant variations in design.
In 2004, Sadakalo used renowned media personalities
Ali Zaker and Sara Zaker for the opening of its third outlet
in Bailey Road and that shop experienced immediate
success. Bailey Road is famous for its theatres, boutiques
Mohammad Alamgir Hossain, Shahzada M. Imran, Tajmin Hossain Chowdhury, Moinuddin Md. Rahat Sobhan and Rakib Jafor
and restaurants attracting numerous media personalities
and people in general who love culture and value our
tradition the most. This location was so appropriate for
Sadakalo that it opened another outlet (sixth one) at the
Navana Bailey Star Market in Bailey Road in 2008. This
outlet has been the most popular so far.
There is a popular saying Keep your friends close, and
your enemies closer. Sadakalo exactly did that when it
joined with Deshi Dosh. Deshi Dosh is a flagship outlet of
10 major domestic brands selling similar kinds of products
with similar price ranges. So, this will help Sadakalo
observe the moves of nine major competitors from a close
distance.
In 2009, it was first time for Sadakalo and also for any
Bangladeshi fashion house to open an outlet in a foreign
land, at Jackson Heights of New York, USA. Jackson
Heights is a popular area for Bangladeshi people living in
New York to shop and hang out. Sadakalo opened another
outlet in Florida, USA next year. In the hope of opening
more outlets in USA, Sadakalo came to an arrangement
with Bangla Trading, a company that participates in fairs
year-round throughout USA.
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Existing (%)
Mens wear
Womens wear
Childrens wear
Others
Total
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35
25
5
100
Suggested (%)
25
60
10
5
100
Wrong Moves
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Shahzada M. Imran
School of Business
North South University
Bashundhara, Dhaka-1229
Bangladesh
Recommendations
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Case Analysis lV
This case demonstrates the image of a successful
Bangladeshi fashion house Sadakalo by focusing on its
plans, challenges and strategies. The case emphasizes on
the activities that allow Sadakalo to continue to build its
reputation in Bangladeshi fashion market. Moreover, the
case also shows some challenges faced by Sadakalo for its
sustenance in the fashion market of Bangladesh.
The case illustrates Sadakalo as one of the successful
fashion houses of Bangladesh which relies on some competitive and absolute advantages. First of all, Sadakalo
focuses on being different and unique, the exceptionality
and combination of the two colour products keep them
different from all other traditional local brands. The idea of
creating black and white clothes, at a time when everyone
else was focusing on vibrant colours allowed Sadakalo
to attract significant number of consumers who are
Mohammad Alamgir Hossain, Shahzada M. Imran, Tajmin Hossain Chowdhury, Moinuddin Md. Rahat Sobhan and Rakib Jafor
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Challenges of Sadakalo
Further study of the case illustrates various issues which
can act as barriers for the growth of Sadakalo. These issues
are as follows:
At present, Sadakalo only focuses on traditional products in the line with different cultural festivals. Therefore,
it is unable to sell an appropriate volume of clothes
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throughout the year. Secondly, its poor marketing strategies and low budget make them unable to increase expected
sales.
A successful fashion house like Sadakalo should provide
at least two discount sales throughout the year to show
brand loyalty to the regular customers and attract more
customers. However, Sadakalo offers only one summer
sale throughout the year, which allows them to collect a
good amount of revenue. Therefore, it can be believed that
more promotional or discount sales would allow Sadakalo
to be famous and earn more revenue in future. Moreover, Sadakalo has very poor budget for promotion and
advertisement purposes which is 34 per cent of the yearly
revenue. It has no strategies to create website or provide
advertisements on social networking websites. As a result,
Sadakalo has flat sale all over the year except the major
festivals such as Eid-ul Fitar and Eid-ul Azha. Another
reason for the poor sale is due to climate change. Sadakalo
has no strategies to make different clothing products
according to diverse seasons; climate plays an important
role in the demand of clothing products. The case also
states that Sadakalo is relatively immobile in the country.
They are only concentrating in Dhaka city (recently started
also in port city of Chittagong), the capital of the country.
However, there are large numbers of potential customers in
other cities as well. Lastly, due to globalization significant
changes influenced the fashion industry and turned the
market more challenging and competitive for Sadakalo.
However, Sadakalo has not adapted these global changes
as they are only focusing on traditional products which can
reduce the market share of Sadakalo in the long run.
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Suggestions
The challenges identified in the case can create critical
issues for the continuous success and growth of Sadakalo;
therefore, necessary steps should be taken to solve these
issues. Some suggestions are provided below to address
the above issues.
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This case states the positive factors that are the reasons
behind the success of Sadakalo and also shows some
challenges. The suggestions indicated above could be
helpful for Sadakalo to make strategies to achieve future
goals, objectives and improve current condition. Overall,
the case provides important implication for the entrepreneurs, marketing practitioner and policy makers.
Conclusion
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Case Analysis V
Mohammad Alamgir Hossain, Shahzada M. Imran, Tajmin Hossain Chowdhury, Moinuddin Md. Rahat Sobhan and Rakib Jafor
is very reputed in the Bangladeshi market. Reputed
companies like Sadakalo are trend-setters in their own
areas, and leaders in their own field themselves face
difficulties to make changes in the current systems and
mind set. Such resistance to change might affect the overall
business activity in the long run.
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Decision Criteria
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The decision criteria for both long and short run are
primarily focused on increasing the current sale and
increasing the brand image through innovative marketing
media.
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standard, Sadakalo has to change its operational process in some areas. To name an important one,
dependency only on the physical stores and not
developing an online store of its own when the number of Internet users is increasing continuously in
Bangladesh. Like the first and second option, the
third option will help Sadakalo to increase its market
share and to generate more revenue than before.
My proposed solutions to the problems identified in the
case analysis are limited to the following:
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