Professional Documents
Culture Documents
MANAGEMENT OF SHWAPNO
Department Of International Business
University Of Dhaka
Assignment on
Submitted to
Associate Professor
University of Dhaka
prepared by
Name ID
Md.Monir Hosen 10
Solaiman Hossain 48
1
1.2 Methodology:
The data of this study has been collected through secondary sources such as different journals,
articles, research publication, and internet etc. To give the report a better look, secondary data is
also collected from different brochures, newspapers and consultation.
Employees of SHWAPNO are usually busy with their daily work and activities, so it is
quite impossible sometime to get time from them for getting information about our report.
Sometimes the authority does not provide their internal information which is very difficult
to collect from any other sources.
Insufficient information on journals, internet and poor company profile
Limitation of time is also a barrier for making this report.
2
Chapter 2: SHWAPNO and its Strategy
In 2008 SHWAPNO made its entry into the retail market as “Fresh and Near” in order to fulfill
the ACI’s ‘Seed to Shelf” vision of connecting directly with consumers. SHWAPNO vision is the
passion to make positive impact on the lives of many. From the beginning, SHWAPNO set off to
change the way in which the mess consumer base in the country fulfills its daily needs, bringing
modern retail into the lives of consumers that had for long relied on wet markets and other unsafe
traditional shopping channels. SHWAPNO mainly try to change the life style of Bangladeshi
consumers.
3
Vegetable
Fruits, Meat and Grains
Company Goods and Non-Food divergence.
The company has tens of thousands of stocks keeping units in their portfolio. Each master category
is further subdivided into category, subcategory and type category. These subdivisions great aid
the decision making of management.
SHWAPNO recently has gone aboard on implementing various businesses and marketing
strategies for each of its master categories. In the VFMG master category, SHWAPNO has
introduced live chicken and live fish products and concentrated on providing consumers with
formalin free products.
In the Non- Food Divergence category, SHWAPNO has introduced products designed by its own
design team, products that can be purchased in interest free installments and lastly, SHWAPNO
has also introduced furniture products to boost sales.
Time- conscious customer: Those who are more giving more importance on time when they are
purchasing any product. Most people are busy with their job. They are not interested to spend more
time on shopping. So, they prefer that kind of shops which provide all kinds of item in a one place.
SHWAPNO is one kind of that store.
4
2.6 SHWAPNO’s Strategy analysis
Non-Food Department (NFD) strategy:
SHWAPNO came up with a strategy to introduce a new category to increase sales and gross
margin. This is called Non-Food Department (NFD). The goal of this strategy is to increase sales
and improve the brand image of SHWAPNO.
New designers were hired from prominent design houses of Bangladesh that promote
SHWAPNO’s new brand in the lifestyle category. The designers focused on creating ladies
clothing, products for women, male and children. SHWAPNO’s designers continually churn out
new designs which have captured the imagination of the Bangladeshi public.
Revenue Generation:
Non-Food Divergence category is the most important category in terms of revenue, potential and
growth in the entire company. SHWAPNO is now not only a place where consumers come to buy
groceries and company goods, but a place where consumers can have purchase a wide variety of
products conveniently.
5
2.7 SHWAPNO’s Target Market
SHWAPNO is a classic example of mass marketing that failed to attract the masses. Even though as a price
leader and the strength of almost 3 times the numbers of outlets compared to its nearest competitors it had
its basics right, the problem essentially was the fact that the masses in Bangladesh belong to the lower
income groups and would not come to retails super stores. Even though SHQAPNO still strives to bring the
masses in to its stores its main customers essentially are the lower middle, middle-middle and upper middle-
income groups which constitutes about 28% (Statistics, 2010) of the population. The income of this group
ranges from BDT 25000-40000, BDT 41000- 60000 and BDT 61000-100000. The customers are men aged
between 30 to 40 years and women between 26 to 50 years of age. Working men and women as well as
housewives come to the stores and no specific gender or occupational patterns could be found.
6
but appear colorful because of promotional streamers and banners placed strategically to add
colour and capture attention. All outlets control aroma by using the same air freshener.
7
2.10 SHWAPNO’s Marketing Promotion Tools:
2.10.1 Advertising:
Newspaper: SHWAPNO mainly use newspaper as their advertising tools. Newspaper
helps the consumer to save time
Bill boarded: Bill boarded is another advertising tool for promoting SHWAPNO’s
products. After using bill board SHWAPNO able to sell their punjabi and salwar kameez
got double than ever before.
Catalog: after several years SHWAPNO introduced product catalog in terms of their
marketing promotions. Catalog will basically help customer to save their time by having
look at a glance at the product picture with price quotation.
Television advertising: SHWAPNO have already gone for TV ad from last Eid al-Fitr
and got good response from the customer.
8
Internet marketing enables you to build relations with customers and prospects through regular,
low-cost personalized communication, reflecting the move away from mass marketing. Internet
marketing enable us to be open for business around the clock without worrying about worrying
about store opening hours or overtime payments for staff. SHWAPNO mainly use social
networking site facebook. They have their own facebook page. They upload all the photo shoot
pictures, packages and offerings in their facebook page. So that customer can choose their products
from their house through social networking site. Catalogs are also given in the facebook page.
From the catalog customer can see price and size details which will help them to select product
within their budget. Marketing products on the internet costs less than marketing them through a
physical retail outlet.
Superior Quality:
SHWAPNO has a total quality management team that tightly controls and maintain the quality of
all kind of their products. The customer has guarantee to get the good quality of deshi brand
product and also get the post purchase facilities like if they found any problem with the product
they can return the product but they have to do it within fifteen days in terms of nonperishable
goods. SHWAPNO made up mind to make good competition in the market and they are determined
to provide highly quality goods to the customers. Other companies are trying to compete with them
and recently are getting enough close to them.
Superior Innovation:
In the SHWAPNO, they are explored a range of technologies that are reshaping their activities
more accurately and less timely. They are practicing their regular activities through modern
technology. They keep their daily record of purchase and sales volume through computerization.
Superior Efficiency:
SHWAPNO do not keep over stock of their products. They always purchase materials, goods in
the daily basis especially in perishable products. For this at the end of day they have no enough
inventories. They also use expertise employees and gave proper training about materials
9
management. The management team also monitoring on records, inventory, employee
performance that’s why they can easily avoid wasting materials, energy, effort, money and time in
doing something or in producing a desired result.
Customer Responsiveness:
Customer responsiveness is the ability of a business to recognize and respond to changing
customer needs. Because the all of the employees in the SHWAPNO were given proper training
about their products, they can easily manage customers. They can understand customer’s intension,
preference and on according that they provide products on respective quality.
1. Number of Competitors: Established brands have fewer barriers than others. The rivalry
continues on depending on the industry. In this industry the number of competitors is huge but the
potential customers are few. Some SHWAPNO competitor’s names are given below:
Agora
Meena Bazar
Chaldal.com
Unimart
Lavender
Priyo
Ekachabazar
Others
2. Number of Substitutes: All business firms fight with the competitors and try to offer better
product and service. Lower price and higher quality substitutes are always two important criteria
for the customers. Rapidly available products and lower switching cost can be the factors of
stronger substitutes. SHWAPNO’s competition is mainly Dhaka based for this industry because
the potential customer who earns more than 40 thousand monthly resides in Dhaka or Chittagong.
That is why maximum retail stores are situated in two big cities. Non-perishable are available in
every store but the best perishable products are available in SHWAPNO.
10
3. Bargaining power of the Buyer: When there are few buyers and they buy large number of
products, they can control the bargain. Again, if there are so many suppliers, buyer can have the
power. Most of the SHWAPNO owns the power of bargaining but sometime it varies. Seasonal
perishable products like vegetables, fruits can be bought in a comparatively lower price. Besides,
SHWAPNO has contract with some fixed suppliers who supply products in a large amount with
an affordable price.
4. Bargaining power of the Supplier: When there are fewer substitutes’ products or suppliers,
the bargaining power is higher. In this case suppliers can threat to change another buyer for a
higher price. Sometimes for the unavailability of the product or the imported product, supplier can
charge a huge amount. SHWAPNO tactfully deals with them so that competitors cannot have the
unique products.
5. Entry barrier: There are some factors those perform as an entry barrier: brand loyalty of the
customers, cost advantage by buying large amount, economies of scale by producing large amount
so that per unit cost decrease, government regulation, switching cost. In this industry entry barrier
is huge because it requires huge amount of investment.
Meena bazar:
Meena Bazaar has 18 outlets spread across Dhaka, Chittagong and Khulna. (Bazaar, 2014). Meena
Bazaar’s target market is mainly the upper middle class, middle class and affluent segments of
Bangladeshi society. Meena Bazaar has focused extensive attention on providing their consumers
with high quality organically produced. it has recently launched free home delivery service and
ordering through the internet in order to take advantage of the booming ecommerce business in
Bangladesh. In store communication and branding are other strong points of Meena Bazaar. It also
has a very efficient inventory management system.
Strengths
Good Inventory Management System
Focus on organic products
Outlet are not rented
Free online delivery
Weaknesses
High operating costs
Reliance on vendors to source products
Only three outlets are making profits Figure
Agora
In 2001, Agora first introduced in Bangladesh to the concept of super market retail stores. Agora
has around 13 outlets spread across Dhaka and Chittagong. In terms of product displays in their
outlets, Agora is way ahead of their competitors. In the retail industry, proper display of products
is vitally important to ensure sales. Agoras in store communications are quite advanced when
compared to what SHWAPNO usually implements. The greatest advantage is that it has developed
processes in a structured manner, which has enabled them to develop effective key performance
indicators for success in the industry.
Weakness of Agora:
Late comer for implementing enterprise resource (ERP) planning software.
12
Lack of ERP has had an adverse impact on their performance.
Failed to attain the share of the market as large as SHWAPNO’s
Highly dependent on vendors for their perishable and protein products.
Hard time maintaining the quality of some of their products
The inventory management system at Agora is also inefficient.
Outlet: Compare to other organization such as Agora, Meena Bazar SHWAPNO is in first position
in every aspect. SHWAPNO has over 60 outlets all over 17 districts in Bangladesh, and day by
day the number of outlets is increasing. Market share of SHWAPNO is 35% in modern retail
system. The biggest advantage of SHWAPNO is that, different age and different income group of
people is the target people of SHWAPNO that is the main uniqueness as SHWAPNO.
Decoration: Decorations of SHWAPNO outlets are different than any other super store.
SHWAPNO always try to decorate their outlet in a different way to attract the customers then their
competitors. Likely they decorate their new outlet with balloons and much colorful material.
13
Prices: Compare to other super shop, the price of the products in SHWAPNO is less. The
main reason is that SHWAPNO usually collect their products directly from whole seller and
another important reason is VAT. SHWAPNO usually pays the government VAT themselves for
that reason they take less price from the customers.
Extensive area for It has been made with a plan of Meena bazar is very
shopping maintaining wide area congested
Investment in decoration It has a plan of doing investment But Meena bazar has no focus
more in decoration of their shop on that
Home delivery facility It does not give the service of It has recently launched free
home delivery home delivery service
14
Chapter 3: Human Resource Management Strategic Approach
3.1 Selection:
The selection process refers to the steps involved in choosing people who have the right
qualifications to fill a current or future job opening.
15
Pre-Service Training for selected candidates:
Pre-service training is provided to candidates who are selected from the interview. It is a 2days
training session where master module is followed. The training contains organization information,
product knowledge, sales policy, customer service.
Reference and Certificate Check:
After the selection is done through the test; then the HR team carries out the background
investigation of the potential candidates by checking their all certificates, references.
Job Offer:
After the verification of the certificates and references the candidates finally become eligible to
join the sales associate team of the SHWAPNO; so, they are requested to carry the joining
procedure of the SHWAPNO.
16
Chapter 4: Findings and Recommendation
4.1 Findings
After analyzing data we find various problems and their solution, such as:-
Females are more interested to go super shops
We find that which peoples are visit there most of them are young
We find that service holder is top of the other occupation group
Shwapno is one where approximately 33% respondents are going for their daily shopping
63% (approximately) respondents have said that, they informed about this shop from their
family member/friends who have already visited this shop
80% People have said that, the Location is very important factor other than the product
availability in selecting a departmental store.
30% respondents are totally neutral for supporting Local Acceptance
We can say that External Outlook is important for selecting a departmental store.
Parking is moderately important for everyone
Every customer wants to buy product in Reasonable Price and that’s why 97% people said
that Reasonable Price is very important in super shop’s product for their satisfaction
Baby Care is moderately important for everyone
Through our survey we can say that Security is very important for everyone
Interior Decoration is important for every respondent
Billing Statements is very important for all super shops customers
4.2 Recommendation
Improve Supply chain and inventory management processes.
They should use brand endorsement by celebrities. Use pictures of celebrities on
Shwapno’s banners with catchy slogans. Given the diverse localities where Shwapno
operated at least 3-4 spokespersons should be used. For example, Hasan Masud for old
Dhaka outlets, Bipsha Hayat for Gulshan, Banani and Uttara outlets and Momtaz for their
outlets in the outskirts of Dhaka.
17
Analyse consumer needs and design product assortment accordingly.
Extensive training and development for the support and front-end staff is needed to ensure
quality service.
To get proper success in any particular work, faster work execution is needed to a great
extent. If the execution gets faster than it will be very profitable for the company.
Sales officer should visit more corporate offices to get the potential clients.
All the decision should be made based on the company policy. If that is done and problem
occurs in the future then we can always depend on the company policy.
If the employees find themselves more serious and focused towards work then it will be
more profitable for them as well as for the organization.
If the software is updated, the work can be completed in a faster way.
The sales dept. should go for recruitment process for the vacancy position in order to make
work effective.
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.
18
References
Hawkins, D. I., & Mothersbaugh. (2011-12). Consumer Behavior. New York: Mcgraw- Hill.
Shwapno. (2009). About Us: Shwapno. Retrieved 05 21, 2012, from Shwapno Website:
http://www.shwapno.com/about.php
Statistics, B. B. (2010). Household Income and Expenditure Survey . Retrieved 05 22, 2012, from
Bangladesh Bureau of Statistics website:
http://www.bbs.gov.bd/PageReportLists.aspx?PARENTKEY=66
Iqbal, A. (2014, June 28). Profile of Asif Iqbal. Retrieved from Linkedin:
http://bd.linkedin.com/pub/asif-iqbal/23/378/ab0
Nasir, S. H. (2014, February 9). Retail Scenario in Bangladesh. (S. S. Rahman, Interviewer)
Unknown. (2014, June 28). Company Profile. Retrieved from ACI Limited: http://www.aci-
bd.com/corporate.php
19