Beruflich Dokumente
Kultur Dokumente
drive
to
attract the
consumers
in
terms
of
status
and
in
Dhaka(Media
Bangladesh,
2015).
To
maintain
profit,
Princebazaar attempts to make up for the low margins with a high sales
volume. Moreover it also sells higher margin items. The overall environment
for Prince Bazaar and its competitors are changing from a product oriented
atmosphere to customer oriented atmosphere where emphasis is put on
satisfying all of the consumers needs. In order to remain competitive, Prince
Bazaar wants to re-evaluate its future opportunities for growth without
compromising its profits. This study determines consumers responsiveness
toward marketing mix of superstores in Bangladesh. The study was done on
PrinceBazaar which is one of the famous and large superstore (in terms of
outlet) in Bangladesh(Online Dhaka Guide, 2015).
PROFILE OF SUPERSTORES
In Bangladesh we are observing the trend of superstores and it is increasing
rapidly. Agora, Prince Bazar, Prince Bazar,&Shawpno, etc are some renowned
superstores which have made life easier and convenient. Agora now runs
five outlets, Prince Bazar ten including eight in Dhaka, Prince Bazar two, and
Swapno seventy including thirty outside the capital. Hassle-free shopping
environment, hygienic commodities, fresh vegetables, meat and fish at the
supermarkets are earning appreciation of the customers(Prince bazar, 2015).
The superstores offer good services to working people who really find little
time for shopping. Trend of superstore helps to overcome many problems of
daily life. It has relaxing shopping environment and every commodity is
available at one store(Prince bazar, 2015). Due to these characteristics .The
study has been focused on Prince bazar related to marketing research. The
brief profile ofPrincebazaar, Agora &Princ bazar is given below.
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PRINCEBAZAR:
Gemcon Group introduced its superstore first at Dhanmondi on 1st
November 2002 named Prince Bazar. Currently there are ten Prince Bazar
outlets in Bangladesh. Eight outlets are in Dhaka, two outlets at Dhanmondi,
three at Mohammadpur and other three outlets of Dhaka at Banani, Mirpur
and Azimpur. Another two outlets are in Chittagong and Khulna. The aim of
Prince Bazar is to ensure fresh products in consumers daily life. It offers
about 20,000 items that include grocery, readymade garments, jewelleries,
cosmetics, stationery, toys, baby items, beverage and food including a wide
range of agricultural and dairy products, electronic goods and many other
household essentials. It has its own product categories like sweets,
confectionary items, herbal beauty products, tea, etc. It has Fun-Zone in its
outlet for children. In 2010 it started flexi load and bill pay services of
Grameen Phone at all its outlets for the convenience of the customers(Media
Bangladesh, 2015). Factors Affecting Impulse Buying Behavior of Consumers
211 which is unique in Bangladesh. It provides many promotional offers to its
customers in different festival seasons (Eid, New Year, etc.) like other
superstores. The website of Prince Bazar is under construction. It has
planned to open around sixty more outlets in the next four to five years
across the country.
AGORA:
Rahimafrooz Superstores Ltd. (RSL) made a breakthrough in the urban
lifestyles by launching the first retail chain in the country, Agora, in 2000.
Currently there are five Agora outlets, four are at Gulshan, Dhanmondi,
Moghbazar and Mirpur in Dhaka. Recently it has opened a new outlet in
3 | Page
introduces
customer
feedback
questionnaire
to
identify
the
In 2008
more chain store in Mohammedpur and Shaymoli which stays open from 8
am to 10 pm 7 days a week .While prince bazar mainly focuses on food items
- ranging from a wide variety of fish, meat, vegetables, fruits, bakery, dairy,
to grocery - it also carries a vast array of other households, personal care,
and miscellaneous products(Babin, Lee, Kim & Griffin, 2005). It offers about
14,000
items
that
include
grocery,
readymade
garments,
jewelries,
cosmetics, stationery, toys, baby items, beverage and food including a wide
range of agricultural and dairy products, electronic goods and many other
household essentials. It has its own product categories like sweets,
confectionary items. . It provides many promotional offers to its customers in
different festival seasons (Eid, New Year, etc.) like other superstores(Ronald
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& Hasty Attraction, 2003). Here the combination of quality and price under
various brand names offers value to the consumers for their money. Prince
Food & Agriculture Products Ltd. produces a variety of food items, including
organic products, prepared foods and herbal products which are sold through
Prince Bazaar retail outlet. Prince Bazaar occupies a large floor space of
2000squarefeet on a single level and is situated near residential areas in
Dhaka city in order to be convenient to consumers. Its basic appeal is the
availability of a broad assortment of goods under a single roof at a moderate
price. It is now a part of a chain that owns or controls other super stores
located in Dhaka(Belk, Russell, 2006). To maintain a profit, prince bazaar
attempts to make up for the low margins with a high sales volume. Moreover
it also sells higher margin items. The overall environment for Prince Bazaar
and its competitors are changing from a product oriented atmosphere to
customer oriented atmosphere where emphasis is put on satisfying all of the
consumers needs. In order to remain competitive, Prince Bazaar wants to reevaluate its future opportunities for growth without compromising its profits.
This study determines consumers responsiveness toward marketing mix of
superstores in Bangladesh(Baker, 2007). The study was done on Prince
Bazaar which is one of the famous and large superstore (in terms of outlet)
in Bangladesh(Online Dhaka Guide, 2015).
OBJECTIVES OF THE STUDY
The present study is aimed to analyze the responsiveness of consumers
toward marketing mix of Prince Bazar . Specific objectives of this study are
as follows:
1. To identify the responses of the consumers toward the product/service
of Prince Bazar.
2. To identify the responses of the consumers toward the price of
products at Prince Bazar.
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RESEARCH METHODOLOGY
The study is conducted on the basis of two sources of information: primary
and secondary sources. At first, some general information regarding
customers
is
asked
in
questionnaire
like
name,
age,
gender,
etc.
are
asked
questions
after
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completion
of
their
PRODUCT PORTFOLIO
In two of the major stores of Prince Bazar all the necessary commodities are
available. Prince bazar have a wide range of product portfolio and they are:
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PROMOTIONAL ACTIVITIES
Prince bazarprovide any incentives to promote their retail store. Such
incentives are seasonal discounts and mega offer on specific products, Prizes
and gifts on the amount of purchase. Prince bazar also promotes their store
by ad on banner and billboards and also in various social networks such as
Facebook and Google+. It provides many promotional offers to its customers
in different festival seasons (Eid, New Year, etc.) like other superstores.
SUPPLIERS:
Many of the product like , Jelly, Pickle, Baking Powder, Custard Powder, Ice
Cream, Chanachur, ChiraVaza, LachhaSemai, Toast Biscuit, Sauce, Mustard
Oil, White Vinegar, Honey, Noodles, Ovaltin Biscuit, Horlicks Biscuit, Salt
Biscuit, Ghee, Bread, Aromatic Rice, Puffed Rice, Cake, Yogurt, Custerd Cake,
Mineral Water, ShahiLabang, etc are supplied by their own Prince brand
(Janta Review, 2015). Other brands are supplied by local importers. Green
grocery and meat product are supplied by local market dealers ; to maintain
the freshness of decay able product
department
2007).
analysis
that
identifies
Prince bazaar is also maintained SWOT analysis for accomplish its objectives
properly and sustainably. SWOT analysis of prince bazaar is given below:
Strengths
Weaknesses
Opportunities
9 | Page
Threats
-growing economy
-price changes
-unexpected problems
-increase in labor costs
-increasing rates of interest
-growing demand
-growth rates and profitability
-new products and services
-new acquisitions
Prince
Food
Products
Industry
has
to
focus
on
customers
10 | P a g e
mission
statement is
statement
of
its
for
reason
the
purpose
existing;
of
written
currently
has
25
on-going
concerns,
management
to
COMPETITIVE STARETGY:
A firm's relative position within its industry determines whether a firm's
profitability is above or below the industry average. The fundamental basis
of above average profitability in the long run is sustainable competitive
advantage. There are two basic types of competitive advantage a firm can
possess: low cost or differentiation. The two basic types of competitive
advantage combined with the scope of activities for which a firm seeks to
achieve them, lead to three generic strategies for achieving above average
performance in an industry: cost leadership, differentiation, and focus. The
focus strategy has two variants, cost focus and differentiation focus.
12 | P a g e
1, Cost Leadership
All super shop offers almost similar types of facilities and product. Whether it
is Princebazaar , agora, nondan or prince bazaar, So the management tries
to take the cost leadership strategy. They ask much less value to the gift
product and imported product. In cost leadership, a firm sets out to become
the low cost producer in its industry. The sources of cost advantage are
varied and depend on the structure of the industry. They may include the
pursuit of economies of scale, proprietary technology, preferential access to
raw materials and other factors. A low cost producer must find and exploit all
sources of cost advantage. If a firm can achieve and sustain overall cost
leadership, then it will be an above average performer in its industry,
provided it can command prices at or near the industry average(Media
Bangladesh, 2015).
2. DIFFERENTIATION
Prince bazaar is different with their product only with foreign product. They
also sells sarees at the same time in the same super shop so it maintains a
quiet unique
3. FOCUS
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Prince bazaar focuses on the ladies item more than the male. The generic
strategy of focus rests on the choice of a narrow competitive scope within an
industry. The focuser selects a segment or group of segments in the industry
and tailors its strategy to serving them to the exclusion of others(Babin, Lee,
Kim & Griffin, 2005).
(a) In cost focus a firm seeks a cost advantage in its target segment, while
in
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COMPETITORS ANALYSIS:
In recent past lots of super store have been emerged. That is definitely
bringing more competition for prince bazaar. We are analyzing the top most
competitors:
Prince Bazar: Prince Bazar is the market leader at this time. It covers the
whole city. The main thing is the name of the Prince bazaar is known by all.
Supplier of Princebazaar is well organized, most importantly they have outlet
all over the city. People find more assurance from buying the product from
Princebazaar. Prince bazaar is new in this case they have to gain the loyalty
of the customer(Baker, 2007).
Big bazaar: Althoughbig bazaar is a renown brand in India but we also big
bazaar in our country .They have only two outlets one in wari and another
one is on jatrabari. Prince bazaar is making a tough competition with big
bazaar(William, Darden, and Mitch, 2004).
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Threat of Substitutes
People can switch to normal vegetable market any time. If there is any kind
of problem available.In the grocery industry this can be seen in the form of
product-for-product or the substitute of need and is further weakened by new
trends, such as the way small chains of convenience stores are emerging in
the industry. In this case Prince Bazar, PQS and Agora's are trying to acquire
existing small-scale operations and opening Metro and Express stores in local
towns and city centers(Babin, Lee, Kim & Griffin, 2005).
Bargaining Power of Competitors
The grocery environment has seen a very significant growth in the size and
market dominance of the larger players, with greater store size, increased
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TARGET MARKET:
Every company needs to make their strategy best. The main focus of
making strategy is to capture the target market. Strategy includes not only
the target market but also the potential market.Market segmentation is a
18 | P a g e
criteria
are
behavioral
segmentation,
Demographic,
15-30: In these category females like to buy Chock lets, gifts, jewelries
and Dress. So they are categorized in these sections.
31-45: In these category females like to buy daily necessaries in most of the
cases. People all over Dhaka comes to buy their product on a regular basis
45 and above: These type of people normally buy is luxuries product. They
used to go there and buy whatever they need.
19 | P a g e
business
portfolio
into
four
categories
based
on
industry
20 | P a g e
High market growth rate means higher earnings and sometimes profits but
it also consumes lots of cash, which is used as investment to stimulate
further growth. Therefore, business units that operate in rapid growth
industries are cash users and are worth investing in only when they are
expected to grow or maintain market share in the future(Belk, Russell, 2006).
There are four quadrants into which firms brands are classified:
Dogs: Probably dogs are the perfect quadrants for prince bazaar but its
market value is getting higher day by day. Dogs hold low market share
compared to competitors and operate in a slowly growing market. In general,
they are not worth investing in because they generate low or negative cash
returns. But this is not always the truth. Some dogs may be profitable for
long period of time, they may provide synergies for other brands or SBUs or
simple act as a defense to counter competitors moves. Therefore, it is always
important to perform deeper analysis of each brand or SBU to make sure
they are not worth investing in or have to be divested(Mattila&Wirtz, 2001).
Cash cows. Cash cows are the best suited quadrants for prince bazaar.
Mirpur branch is their first branch. It makes huge business in that branch. So
they decided to extend their business into mohammadpur and shamoly. Cash
cows are the most profitable brands and should be milked to provide as
much cash as possible. The cash gained from cows should be invested into
stars to support their further growth.
According
to
growth-share
matrix,
Again, this is not always the truth.Cash cows are usually large corporations
or SBUs that are capable of innovating new products or processes, which
may become new stars. If there would be no support for cash cows, they
would
Strategic
not
choices:
be
Product
capable
of
development,
such
innovations.
diversification,
divestiture,
retrenchment(Mattila&Wirtz, 2001).
Stars. Prince bazaar doesnt have such growth in the recent past that we can
consider it as star. Stars operate in high growth industries and maintain high
market share. Stars are both cash generators and cash users. They are the
primary units in which the company should invest its money, because stars
are expected to become cash cows and generate positive cash flows. This is
especially true in rapidly changing industries, where new innovative products
can soon be outcompeted by new technological advancements, so a star
instead of becoming a cash cow, becomes a dog(Gilboa&Rafaeli, 2003).
22 | P a g e
Strategic
choices:
Vertical
integration,
horizontal
integration,
market
investing
choices:
Market
in
penetration,
or
market
23 | P a g e
development,
not.
product
Super
shop
Result
Attribut
name
s
Qualit
Pric
Variet
Availabili
Locatio
ty
67.6
64.05
43.5
Princ
e
130.5
Bazar
Agora
Nand
an
04.2
5
Total
Point
Position
409.7
406.2
1st
2nd
125.1
95
71.4
61.05
39.7
114
105
75.5
60
39.7
398.7
3rd
79.6
63.45
38
397.3
4th
Princ
e
bazaa
114
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99.2
5
Here the we find some statistical value by differentiating each one with
price, variety availability, location etc. in terms of Prince bazaar , we got
attributes value 4.35 for quality; and we set weight (bi) =30 for quality; so
we multiplied attribute value e; and weight value (bi) and got 130.5.
Prince bazaar offers after sales service. If you find any defect in the product
after reaching house it will be exchanged within 3 days. The service you
provide to your customers is crucial to your business success. For many
customers, after-sales service is what makes one supplier stand out from
another, often more than product or price. Good customer service can
attract new business and can create a loyal customer base(Media
Bangladesh, 2015).
25 | P a g e
DISTRIBUTION CHANNEL:
Prince bazaar is collecting from farmers directly sometimes for rice and other
things. But most of the time they purchases from wholesale market.
Vegetable product is collected from wholesale market. They price varies
sometimes if Wholesaler collect it from local buyer or local market. The
channel is different for imported product. They buy directly from the
producers for gifts or jewelries as well as the dealer supplied it.Goods and
services often pass to consumers through multiple channels. While
increasing the number of ways in which a consumer can find a good has the
potential to increase sales, it also creates a complex system that can make
distribution management difficult. In addition, the longer the distribution
channel the less profit a product manufacturer might get from the sale.
Prince bazaar always maintains a well-structured distribution channel(Ronald
& Hasty Attraction, 2003).
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BREAK-EVEN PRICING
in market PRINCE BAZAR can follow the break-even pricing strategy for
capturing the market in earliest time period. For this if the total cost of this
vacuum cleaner project is 90 per unit, PRINCE BAZAR would fix the unit
price of vacuum cleaner is also tk90.(Bangladesh economy word press,
2015).
MARKUP PRICING
Another strategy is cost plus pricing or markup pricing strategy. Here PRINCE
BAZAR can add the unit markup with the price of every vacuum cleaner. In
markup pricing strategy if the unit cost of per vacuum cleaner is tk60 and
PRINCE BAZAR wants 50% markup, the price would be tk60+tk30(markup)=
tk90(Bangladesh economy word press, 2015).
For ensuring the quality PRINCE BAZAR needs to provide quality money on
its raw materials. Then the total cost and the profit planned for the specific
vacuum cleaner needs to be judged. And PRINCE BAZAR needs to identify
how much money the customer are willing to spent for a comfort shopping
and for surely PRINCE BAZAR cant fix the price much higher than the current
market price. As the market study says that the people in Dhaka are willing
to spent tk110 for a daily product and so PRINCE BAZAR cannot capture the
market with a price of tk150.
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LITERATURE REVIEW
CUSTOMER SATISFACTION
Sustaining an audience is hard, Consistency may be one of the least
inspirational topics for most managers. But its exceptionally powerful,
especially at a time when retail channels are proliferating and consumer
choice and empowerment are increasing.
Getting consistency right in a chain shop like prince bazar also requires the
attention of top leadership. Thats because by using a variety of channels
and triggering more and more interactions with companies as they seek to
meet discrete needs, customers create clusters of interactions that make
their individual interactions less important than their cumulative experience.
This CUSTOMER JOURNEY can span all elements of a company and include
everything from buying a product to actually using it, having issues with a
product that require resolution, or simply making the decision to use a
service or product for the first time(Media Bangladesh, 2015).
Its not enough to make customers happy with each individual interaction.
Prince Bazars most recent customer-experience survey of some 27,000
consumers across 14 different industries found that effective customer
journeys are more important: measuring satisfaction on customer journeys is
30 percent more predictive of overall customer satisfaction than measuring
happiness for each individual interaction. In addition, maximizing satisfaction
with customer journeys has the potential not only to increase customer
satisfaction by 20 percent but also to lift revenue by up to 15 percent while
lowering the cost of serving customers by as much as 20 percent(Media
Bangladesh, 2015).
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will
have
poor
experience
during
the
on-boarding
EMOTIONAL CONSISTENCY
One of the most illuminating results of our survey was that positive
customer-experience emotionsencompassed in a feeling of trustwere the
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promises
kept.
Whats
also
critical
is
ensuring
MARKET ACCEPTANCE
There are three major competitors in market. Prince bazar has a growing
position. Though other retail shops have better acceptance rather than
prince bazar the Growth rate and other facilities surely gives a promising
future in upcoming years. An acceptance ratio of Agora, Almas, Nandan
compared to Prince Bazar is given below with a pie chart
Agora
Almas
Meena Bazar
Nandan
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Quality of the products fluctuates in the retail chain stores in case of local
grocery items like- vegetables, meats, spices and other suitable products.
Since, customers think that the packaged goods have the same quality and
price in all of the retail stores in the country as the product is distributed
from same company and price is tagged over the package. So, the game of
excellencematter in the local grocery food items. But most of the customers
carry the view that Prince Bazar proffers their product with the good quality
vegetable and grocery group. In case of meat, importantsegment of
consumer have wavering and uneasiness. That`s why preponderance of the
consumerprocure meat items from local marketplace(Media Bangladesh,
2015).
CONCLUSION
This can be said that in the finishing part of the report is that the creating
employment and entrepreneurs in Bangladesh retail business have a great
contribution towards the economy. The report is made by the author focusing
on the business environment from Prince Bazar retail chain business,
considering the current scenario in Bangladesh to investigate and evaluate
various theoretical models to analyze the direction and aims to open towards
the expected information to get information.
The author has made an Industrial Analysis STP, SWOT, BCG matrix and
these analysis will be carried out with the competitors. Prince Bazars
product portfolio, pricing and promotional strategies, inventory control,
supply of raw materials, such as Prince Bazar competitor analysis and price
discrimination will be followed different procedures. Survey and data analysis
will be available later on the main phase and a suitable proposal will then be
35 | P a g e
presented along with findings. Overall, this report has covered our learning
outcomes.
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REFERENCE
BOOKS & JOURNAL
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Attributes in Retail Patronage: Seasonal, Temporal, Regional, and
International Comparisons," Journal of Marketing Research on customer
satisfaction, 20 (May), 149-57.
Rora, Raj (2012) "Validation of an S-O-R Model for Situation, Enduring, and
Response Components of Involvement," Journal of Marketing Research, 19
(Nov), 505-516.
Babin, B.J., Lee, Y.-K., Kim, E.-J. & Griffin, M. (2005) Modeling customer
satisfaction and word-of-mouth: restaurant patronage in Korea. Journal of
Services Marketing, 19(3), 133-139.
Babin, Barry J., William R. Darden, and Mitch Griffin (2004) "Work and/or Fun:
Measuring Hedonic and Utilitarian Shopping Value," Journal of Consumer
Research, 20 (March), 644-56
Baker, J. (2007) The role of the environment in marketing services: the
consumer perspective. The Services Challenge: Integrating for Competitive
Advantage. Chicago, IL: American Marketing Association, 79-84.
Baker, Julie, Michael Levy, and Dhruv Grewal (2002) "An Experimental
Approach to Making Retail Store Environmen- Griffitt, William (1970),
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445-60.
Belk, Russell W. (2006) "Situational Mediation and Consumer Behavior: A
Reply to Russell and Mehrabian," Journal of Consumer satisfaction, 3 (Dec),
175-177.
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WEB SITE
Prince bazar. (2015) Available at < http://princegroup-bd.com/ > [Online]
Assessed on< 15th September, 2015>.
Online Dhaka Guide. (2015) Available at < http://www.onlinedhaka.com/1_8_982_0-prince-bazar-mirpur-1-dhaka.html > [Online] Assessed
on< 15th September, 2015>.
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Janta Review. (2015) Available at < bangladesh.jantareview.com/advancedsearch.php?q=prince%20bazar&city=Dhaka > [Online] Assessed on< 15th
September, 2015>.
Bangladesh economy word press (2015) Available at <
https://bangladesheconomy.wordpress.com/category/retail/ > [Online]
Assessed on< 15th September, 2015>
Media Bangladesh (2015) Available at
<http://www.mediabangladesh.net/shopping-dhaka-famous-brand-products/
> [Online] Assessed on< 15th September, 2015>
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