Assignment

MKT202
Section- 9

Submitted to
Mohammed Abdul Mumin

[MEV Sir]

Submitted by
Ramisa Tasrim

I.D- 2014232630

Submission date- 29th August, 2020

DCC Bazar Bd is an online shopping platform which operationally launched in August, 2017.
They portrayed their service as effortless shopping experience with cash on delivery and
extensive customer care. They offer a wide range of products offering in a number of categories
ranging from food and beverage, household essentials, cosmetics and baby items etc. which are
mostly imported. Even though they excelled quite a bit in their physical store, the existing crisis
of Covid-19 resulted in a downturn in their performance.

Answer to the Question No.1

In consideration of the existing crisis and the product and service currently provided by DCC
Bazar Bd, the market segment that should be targeted by them with their online business are
demography and behavior.

Demographic profile: In accordance with demographic segmentation DCC Bazar Bd should

segment their market according to age, gender, income etc. of the target market.

● Age: Most often people aged 20-35 stands out as making more frequent purchases from
online shops in our country (Nordea, 2016). But in this prevailing dreadful situation due
to covid-19, a significant number of people are now ordering their necessity goods from
online shops. Since the product offerings of DCC Bazar Bd are mostly convenience
products, people of prime working age are more inclined to buy from them. As for our
country, youths (15-24) are usually dependent on their parents or guardian, which is why
they should target people of prime working age (25-54).

● Gender: Regarding gender of the target market, women are more suitable considering the
products and services of DCC Bazar Bd. Women are more likely to buy convenience
products such as cosmetics, household essentials, baby foods and foods and beverages
etc. for themselves and their family other than men.

● Income: In consideration of that DCC Bazar Bd should target women who are most likely
to buy their products. In accordance with the income of the target market, DCC Bazar Bd
should target people of high and middle range. Low income people are not so familiar
with shopping their necessary goods online as they have many limitations. Whereas,
people of high and middle level income are more prone to shop online. Moreover, the
number of people of such income level buying their necessary products from online
shops are increasing more in recent times due to the prevailing crisis situation. On such
grounds, it is justifiable for DCC Bazar Bd to target people of high and middle level of
income considering their interest and ability.

Behavioral profile: Pertaining to the fact that behavioral segmentation includes buyer’s attitude
and behavior toward the products, DCC Bazar Bd can segment their market according to the
behavior of the customers. Every day more than 30000 orders are placed through online shops in
Bangladesh (Parvez Sohel, The Daily Star, October, 2018). Moreover, only 6% of the
smartphone users are making regular purchases from online shops (The Daily Star, August,
2019). The buyers who are habituated to shop their convenience products from online shops
regularly are mostly working people. But nowadays people are considering online shopping
more than ever before. Conscious people who are strictly taking the crisis situation into account,
regularly buy their convenience products from online shops rather than going outside to shop.
DCC Bazar Bd should locate such customers who regularly buy their convenience products from
online shops through their past purchases and data on visitor behavior.

DCC Bazar Bd mostly imports their products ensuring authentic and quality products for
their customers. As they present themselves providing authentic products, this should be
positioned in the mind of the customers to gain competitive advantage. Besides, because of the
current situation people nowadays prefer a contactless delivery using online payment. In
consideration with market segmentation, current situation and product offering of DCC Bazar
Bd, suitable positioning statement for them is provided below-

“For the women and mothers making a house into home, DCC Bazar Bd is the online shopping
destination using both online payment and cash on delivery for any convenience product that
best delivers on quality and authenticity at your doorstep because we care about your needs.”

Other than competition, the current predicament of Covid-19, the changing need and want of
the customers etc. are factors which might cause DCC Bazar Bd to reposition its product. The
consumer’s attitude and preferences are evolving with the current crisis. Health related items
such as masks, hand sanitizer, hand gloves, infrared thermometers and oximeters etc. are
witnessing an increase in demand. As a consequence, DCC Bazar Bd should introduce a new
product line which is Covid-19 essentials including all the products according to consumer’s
needs and wants in this pandemic. Moreover, ensuring safe and hygienic products are now as
essential as quality and authentic products. They can also introduce healthy and nutrient rich
foods in their food category which builds the consumer's immune system stronger. Therefore,
DCC Bazar Bd should include covid-19 essential products and foods besides ensuring safe and
hygienic product and service.

Answer to the Question No.2

Online businesses are envisioning a silver lining from covid-19 shutdown, as people are now
more inclined toward online shopping than ever before (Shawki, 2020). The shift of attitude
about online shopping for daily necessities is opportune for DCC Bazar Bd. In this pandemic
state, they can consider using market penetration, product development, market development and
diversification as their strategy of growth. Ideas they can implement using the expansion grid are
listed below-
Market Penetration: One of the existing categories of product currently sold by DCC Bazar Bd is
food and beverages. During this pandemic, people are being more self-conscious about their
health and lifestyle. According to WHO, good nutrition is crucial for health, particularly in times
like this when the immune system might need to fight back (World Health Organization, 2020).
Advertising the existing healthy foods as healthy and nutrient rich choices for a strong immune
system to the existing market DCC Bazar Bd can increase their sales. Through changing the
positioning of their existing product considering the current crisis they can effectively grow their
online business.

Product Development: By bringing in new products according to the new want or need in the
market DCC Bazar Bd can further grow their online business. In accordance with that they can
introduce new product lines like Covid-19 essentials including mask, hand sanitizer, etc. as
people are now more inclined to buy these health and safety related items. Moreover, they can
include their own delivery system ensuring product safety and hygiene. Thus, DCC Bazar Bd can
develop their product offerings with their existing ones to capture the current market with
overwhelming values.

Market Development: DCC Bazar Bd should try to broaden their existing market with their
existing product. Expanding their market geographically can be a suitable choice for them to
capture more consumers. As they already deliver their product all over Bangladesh, they can
consider extending their online business to the neighboring countries like India and Nepal. Given
that, DCC Bazar Bd can infiltrate new markets to elevate their product distribution.

Diversification: Emerging into a completely new market with new products can widen the
horizons for DCC Bazar Bd. The current crisis has brought upon greater need of medical support
among people. Keeping that in account, they can start up their own online medical consultation
and pharmaceutical. By providing intermediate or primary level medical support and necessary
medical supplies DCC Bazar Bd can pivot their own business horizon in the online sector.

The mentioned cases for DCC Bazar Bd for each of the factors of the expansion grid have
some risk and benefit attached to it. The evaluation of such risks and benefits are mentioned
below-

Market Penetration:

● Risks:

➢ Lack of result after altering product value.

➢ Customer not acknowledging the redefined value.

● Benefits:

➢ Increase in sales and revenue.

➢ Improves product visibility.
➢ Elevates the value of the product.
➢ Improve the product positioning.

Product Development:
 ● Risks:

➢ Failing to deliver the desired value to the customer.

➢ Change in need and want of customer.
➢ Sudden change of market environment.

● Benefits:

➢ Capturing market with overwhelming value.

➢ Increase in sales and revenue stream.
➢ Provide satisfaction to the customers.
➢ Achieve stability in demand of the product.
➢ Helps in facing competition successfully and effectively.
➢ Increase in sales of other existing products.

Market Development:

● Risks:

➢ Requires huge capital investment.

➢ Loss of investment in case of failure.
➢ Risk of unsuccessful strategy.
➢ Risk of entering into unknown territory.

● Benefits:

➢ Gaining new customers.

➢ For successfully implemented strategy business can grow in large scale.

Diversification:

● Risks:

➢ Expensive and time consuming.

➢ Unpredictable market.
➢ Failure in capturing interest of the customers.
➢ Lack of expertise in a new field.

● Benefits:

➢ Increase in revenue.
➢ Helps business to grow.

Subsequently, analyzing the risks and benefits of all the factors of the expansion grid, DCC
Bazar should consider market penetration and product development as strategies to grow their
online business during this pandemic. Acknowledging the market needs and demands, if DCC
Bazar Bd can penetrate the market by improving the positioning of their existing product and
introducing a new product line, they can effectively grow their business on an online platform.
Therefore, in my judgement, DCC Bazar Bd should adapt market penetration and product
development as their strategy to grow their online business in this crisis.