Chapter One Introduction
1.1 E-commerce in Bangladesh
Bangladesh is currently observing phenomenal growths in e-commerce and related activities on commercial sectors. Changing mind sets and the advent of technologies have changed the scenario of overall economy and lifestyles of the general people. At present, many online shops in Bangladesh are performing excellently and serving people in great ways. Nowadays, you will observe, rush of commuters, the scarcity of time, frequent shutdowns due to political unrest, increase in urbanization and thirst for more in modern Bangladesh. This has led people to take shortcuts and help of modern communication technologies to conduct their day-to-day activities.
According to Payza (2015), smart mobile devices have brought everything to the consumer’s fingertips and mouse tips and as a result, online shopping in Bangladesh is becoming trendy. People love infinite search options, comparative shopping options, home delivery or click to brick type shopping, and most importantly personalization on e-commerce portals along with personalized incentives.
The economic growth of Bangladesh is quite steady and showing an upward trend. Last one decade it has shown significant improvement, even during the world financial recession the GDP growth was remarkable. Now it is considered one of the fastest growing major economies in the world with a GDP growth rate of over 7.1%. It also got the attention and emerged itself as one of the leading frontier marketplaces for global investors. In 2016, the IMF stated that it was the 2nd fastest-growing major economy in the world (Payal, 2017).
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1.2 DARAZ in Bangladesh
DARAZ was founded by the German based incubator rocket internet. Samwer Brothers are the founders of Daraz and their Headquarter is in Germany. Rocket Internet forms online companies and owns shareholdings in various Internet establishments. Some of their ventures are Daraz, Kaymu, Foodpanda, Jabong, Carmudi, Lamudi, Zalora etc. Rocket Internet began their journey in 1999 and already they have 125+ market leading companies in 50+ countries. At the end of 2014, Samwer Brothers valued Rocket Internet as a multibillion dollar company. The establishment’s market value was around 10 billion dollars in April 2015.
The Company’s business model is to identify effective internet ventures from other developing countries and reproducing their policies in developing markets. In May 2018, Daraz was acquired by Alibaba for nondisclosed deal. It is still not clear why rocket international has sold Daraz to alibaba.
Daraz is an online commercial center where dealers offer their items to purchasers through Daraz site. Daraz can be contrasted with physical commercial center, just distinction is, in a physical commercial center, you need to visit diverse shops situated at various floors for various items and in Daraz site, you can visit distinctive e-stores for various items with a tick of the mouse. Daraz has a few contenders who are likewise making a decent attempt to get the chance to get settled in this developing business sector. According to Ryan Clements, Head of Operation of Daraz angladesh Ajker Deal, Bagdoom and Pikaboo are the direct competitor of Daraz Bangladesh. On the other hand Ekhanei, Rokomari, ClickBD, Akhoni, Bikroy, and a portion of the other prevalent internet business sites who are likewise getting to be distinctly prominent are the indirect competitor of Daraz Bangladesh. Some of the major competitors of Daraz Bangladesh are-
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Chapter Two Theoretical Framework
2.1 Marketing Segmentation Theory
Market segmenatation is the process of identifying a group of consumers with similar needs and producing an offering that will meet those need at a profit. It has simple basis in logic: it is that no single product will appeal to all consumers. The term such as mass marketing have previously attempted to describe the production and subsequent sale of something that virtually everybody would want and in such large quantities that the production costs could be minimized and thus the price kept low. This approach appealed to production engineers, but it is virtually impossible to carry out in the 21st century because people prefer a more individual, tailored product that suits their needs more precisely.
Geographic Segmentation
Geographic segmentation divides the market into geographic units such as nations, states, regions, countries, cities, or neighborhoods. The company can operate in one or few areas, or it can work in all but pay attention to local variation. In this way, it can tailor marketing programs to the needs and wants of local customer groups. In a growing trend called grassroots marketing, marketers concentrate on making such activities as personally relevant to the individual customers as possible. Much of Nike's initial success came from engaging target consumers through grassroot marketing efforts such as sponsorship of local school teams, expert-conducted clinics, and provision of shoes, clothing and equipment to young athletes.
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2.2 The four P’s marketing mix theory
Product
A product is a bundle of benefits, but those benefits are likely to go far beyond the physical item itself. The overt features and benefits of the products are based on the individual's cognitive faculties. Thus, when consumers purchase a quarter-inch drill, the consumers don’t purchase quarter inch drill bits but the ability to create quarter inch holes. Federal express lost much of its overnight letter delivery business not to UPS but to fax machines and internet because these technology could meet the same consumer needs faster, cheaper and more conveniently.
Price
The price of something is the total cost of adopting the product. This includes the purchase price, the cost of switching from the existing product to the new product and the cost of maintain and using the product. The balance between these various elements of the total cost will vary from one product to another. Costs to the consumers includes internal costs, acquisition costs and costs related to risk. The total of these costs will be taken into account when assessing whether the benefits outweigh the price.
Promotion
Promotion is about creating appropriate perception in consumers mind. However, people also consume marketing messages through the media-they enjoy watching some advertisement, they enjoy watching films which have brand placed in them and they enjoy watching informative articles about product categories with which they are involved.
Place
Place refers to the location where the exchange takes place. The place element of the marketing mix goes beyond mere convenience: often the place is, in effect, part of the product because it provide the hedonic benefits of its own.
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Chapter Three Marketing Strategy Analysis ............................... 38
3.1 Marketing segmentation of Daraz Bangladesh ................................. 38
3.1.1 Geographic Segmentation: ................................... 38
3.1.2 Demographic Segmentation: ................................... 38
Chapter Four External environment analysis ................................ 48
4.1 External environmental factors .................................... 48
4.1.1 Economic Factors ............................... 48
4.1.2 Technological Factors ................................. 50
Chapter Five Internal Environment Analysis ............................ 55
5.1 Internal environment factors ..................... 55
5.1.1 Resources ................................. 55
5.1.2 Capabilities ...................... 56
Chapter Seven: Solutions of the Marketing problems
7.1 Solutions to the shortage of product variety:
If we look at the product menu of Amazon, we find that daraz has high range of product than daraz. They not only sell durable products but also sell non-durable, perishable and service products. Among the perishable food fruits, vegetable and meat are the items where Daraz can focus on. A competitor of daraz named www.chaldal.com is selling almost all kind of fruits, vegetable and meat and they are continuously increasing their market share. Although the Bangladeshi people like to buy perishable and grocery items from the offline stores but people are becoming more and more busy day by day and at the same time the traffic jam in the cities becoming unbearable. So, a lot of people losing interest in going to the stores. #p#分页标题#e#
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Chapter Eight Conclusion
8.1 Conclusion
The study pointed some key problems and also suggested some solutions to those problems in daraz.com.bd. The rate of internet penetration rate is increasing day by day in our country. Due to that Bangladesh is an emerging market especially in this e-commerce sector. A huge opportunity is going to be created for a company like Daraz.com.bd. By increasing customer awareness as well as brands awareness Daraz.com.bd can grab that opportunity.
In this paper, I attempted to blend my insight, academic articles and my academic knowledge that I have gained through different academic MBA courses and practical experiences as well. Daraz Bangladesh is still growing and it has huge opportunity to improve more and more as they have technology and resources. They need to assure that they give the best support of the client. In online business there is immense open door in Bangladesh. Simply need to work honestly, sincerely and guarantee clients fulfillment. I personally believe that Daraz Bangladesh will reach at the apex of the online business sector very soon.
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