Building Brand Reputation Through Marketing Mix

A Case Study On Aarong

Wintosh

Table Of Contents

Contents 1. Introduction 2. Research Design 2.1 Type of research Design 2.2 Data collection: sources 2.3 Scaling Techniques 2.4 Sampling Techniques 2.5 Field Work 3. Data Analysis 3.1 Methodology 4. Theories 4.1 Company At a glance 5. Findings 6. Limitations 7. Conclusions 8. Recommendations 9. References 10. Exhibits

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Executive summary Marketing mix introduced by Niel Borden who stated it as mixer of ingredients that is mixing product, price, place and promotion to build up not only the brand but the reputation also. This research was conducted to know how the marketing mix impacts on a companys reputation in terms of price, place, product and promotional activities. From the findings Aarong is best in quality of their product and promotion is good. People finds it difficult in cases of availability of their sales corners and still they thinks price is high. Aarong should take steps to reduce their product price maintaining quality and make themselves available as in many places as possible.

Introduction
In recent years, marketing mix theory gets popular more than before. Marketing managers and corporate business personnels using this method to identify their primary power toward business reputation. Business reputation depends on companys attitude to the customer. These could be price of the product, promotion they offer. Problem: The research is conducted using marketing mix as independent variable and brand reputation as dependent variable, to find out the relationship and effect of the described variables. Our objective is to Find out how to build rand reputation through marketing mix? Find out buyer attitude about Aarong product in case of marketing mix? Find out buyer attitude toward brand reputation?

Research Design 2.1 Type of Research Design

Exploratory Research: The primary research design which objective is to provide insights, understanding of the problem. And it is used when researcher must define problem precisely, identify courses of action and gain additional approach. Causal Research: it is used to obtain evidence of cause-and-effect relationships. Causal research requires a planned and structured design. It is done for the following purpose: 1. To understand which variables are the causes and which variables are the effects. 2. To determine the nature of the relationship between the causal variables and effect to be predicted.

2.2 Data collection Sources

Primary Data Primary data are originated by ta researcher for the specific purpose of addressing the problem at hand. Obtaining primary data can be expensive and time consuming. We obtained primary data from survey and interview. Secondary Data
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Data that are originated previously and collected used for other purpose. Data collection process is easy and quick. Cost is low, needs less time to collect. For example: Journal, data bank, internet, websites etc.

2.3 Scaling techniques

We used nominal scaling techniques to label, tag the descriptions such asLives in: 1. Urban area 2. Rural Area Gender: 1. Male 2. Female

Marketing mix and Brand Reputation Scale 1 for highly disagree and 5 for highly agree. 2 3 4 5

Respondents have to mark or mention the rating.

2.4 Sampling Techniques

For taking sample, members area was considered as primary places. Other than that several market place, Aarong showrooms, user of the Aarong goods considered as sampling place. 7% of the total samples are taken from relatives, 8% from user, and 10% from students, showroom and other sources. We also tried to take rural side sample but it wasnt possible for time shortage and distance.

2.5 Fieldwork
Respondents were asked to fill up a questionnaire, which includes personal and marketing mix with brand reputation questions. Basically, response was taken in face to face interview. Interviewer has to explain several points to make respondent clear about the objective of interview and questionnaire. Most of the respondents appreciated the style of questionnaire.

3 Data Analysis 3.1 Methodology

A formal and structured questionnaire was developed and used to take interviews. Most of the time interviewer present there personally. Respondents were asked to fill up the necessary information kindly. Rating system (scaling) was described before marking each of them. Marketing mix and Brand reputation scaling made clear before circling. Respondents participation was voluntary. To avoid same type of answer or response sample was taken from different peer/ group.

4 Theories
Branding seeks to increase the products perceived value to the customer and thereby increase brand franchise and brand equity. Marketers see a brand as an implied promise that the level of quality people have come to expect from a brand will continue with future purchases of the same product. This may increase sales by making a comparison with competing products more favorable. It may also enable the manufacturer to charge more for the product. The value of the brand is determined by the amount of profit it generates for the manufacturer. Brands are more than just names and symbols. Brands represent consumers perceptions and feelings about a product and its performance---everything that the product or service means to consumers. As one branding expert suggests, ultimately, brands reside in the minds of consumers.(Kotler 2003, 419) Thus the real value of a strong brand is its power to capture consumer preference and loyalty. Brands vary in the amount of power and value they have in the marketplace. A powerful brand has high brand equity. Brand equity is the positive differential effect that knowing the brand name has on customer response to the product or service. A measure of a brands equity is the extent to which customers are willing to pay for the product or service. High brand equity provides a company with many competitive advantages. A powerful brand enjoys a high level of consumer brand awareness and loyalty. When company marketing their products, they need to create a successful mix of the right Product, sold at the right price, in the right place, using the most suitable promotion. The 4Ps is a strategic framework that has had a significant influence on marketers over the years, but has perhaps also begun to outlive its usefulness. The increasingly simplistic idea of addressing the 4Ps of product, price, place and promotion has struggled to keep up with the developments and realities of the
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modern business world. The product has to have the right features - for example, it must look good and work well, and meet consumers needs. The price must be right. Consumer will need to buy in large numbers to produce a healthy profit. The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation. The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.

4.1 Company at a glance

In the Bangla language, "Aarong" means a village fair. Aarong is a chain of retail outlets located in the major cities of Bangladesh. It is an enterprise of BRAC, the largest non-governmental development organization in the world. At present Aarong has 11 domestic outlets, 1 franchise in London as well as considerable export operation in many European, North American and Asian countries. Aarong started its venture in 1978 and currently supports over 65,000 Bangladeshi artisans of whom 85 percent are women. Through a network of 647 production sub-centers and 13 production centers, Aarong has developed a platform for the underprivileged artisans across more than 2000 villages of Bangladesh, where they can utilize their indigenous skills to earn a living. Aarong works in collaboration with the Ayesha Abed Foundation, which provides the artisans the platform to exercise their expertise. Additionally, thousands of independent artisans, small entrepreneurs also earn their livelihood by marketing their craft products through Aarong. Aarong's mission is to help sustain rural craftsmanship and find a wider market for their products nationally and internationally. Aarong products include Nakshikantha, pottery, crafts on brass, jute, wood, candles, leather, hand woven cloth and silk products, jewelry and a wide variety of trendy yet indigenous products. The store specialties include Nakshikantha (a traditional form of embroidery rooted to the core of Bangladeshi village women) and Jamdani sarees. They are currently in talks with Farhana Begum to sign her unique Coffe table design, which turns into a Carom Board and has 12 branches. In 1976 Ayesha abed foundation (AAF) with BRAC initiated their activities in Manikganj. BRAC provides financial support and raw materials to Aarong and they sold finished goods. AAF treated as Aarong production center.

5 Findings
Analysis show that product quality of Aarong has wins the heart of consumers and Aarong dont compromise with it either. 71.2% people thinks Aarong has best
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quality of product and strongly agrees with that, 20.8% people thinks quality is good and 7.2 % thinks quality is ok. Surprisingly we found that no one disagree or strongly disagrees about their product quality. Its the major part also where we found 92% of total rating.

Product Quality
0 20.8 7.2

Strongly Agree Agree Moderate Disagree or Strongly Disagree

71.2

Figure 1 Product Quality Chart

The advertising and promotion of the brand stands second highest in the scoring. 45.6% people found most of Aarongs advertising and promotion are average while, 24.8% people thinks advertising and their customer relationship management is good. Though 7.2% found it best on the other hand 5.6% found it not motivating.

Promotion
100 80 60 40 20 0 Strongly Agree Agree Average Disagree Strongly Disagree 7.2

45.6 24.8 15.2 5.6

Figure 2 Promotion score

Although, Product quality is the highest score in marketing mix but it is not changing the whole picture of the brand alone. From following table we can see that the marketing mix highest score doesnt look good in brand reputation (category 1) that is most favorable or not. But along with others component marketing mix has succeeded to make change in the picture of the company. While average rating of marketing mix is 393.25, the brand reputation increased to 486.25 that is 14.88%.
Table 1 Total Rating %

Variables Marketing Mix rating total % Brand Rep. rating total %

1
575 92 518

2
349 55.84 479

3
391 62.56 464

4
258 41.28 484

Average
393.25 62.88 486.25

82.88 76.64 74.24 77.44

77.76

Overall, lowest score in the place category of marketing mix along with Price makes the brand reputation lower. Otherwise, % could be at 25-30.

6 Limitations
Little information in webpage. Experience in research Data collection time was short.
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No cooperation from showroom.

7 Conclusions Aarong has created a different style, taste, fashion corner for everyone. It has 85 percent working women in several artisans and production center. In future, who knows it may rise to 95 or even 100 percent. People attitude toward Aarong is very good. Aarong should emphasize on placing their corners to everywhere for convenience and easy tracking. Quality cant be compromised but price can be. 8 Recommendations Price of the product is more concern to any customer. Its been tough to any company to provide quality product in low price. But there is always exception. Aarong could make one too. People have showed several other options other than Aarong only for price difficulty. Aarong products are only available in major cities and towns. Where it provides its different kinds of products filled with different taste, color, fashion, style. Location of the brand could increase the ease of findings, availability. This will dramatically increase the reputation as well as profits of the brand. Aarong website should be developed more customer oriented and informative.