Deligram Marketing Strategy Case Study
Question
Task: The case study analysis allows you to analyse a case using theoretical marketing strategy principles to identify practical marketing strategy recommendations. At the conclusion of this assignment, you will be able to apply theory to practice in order to solve and defend your proposed recommendations to the case questions. The purpose of this assignment is to help you gain a deeper understanding of the nature, impact and implications of marketing strategy for organisations. You are expected to draw on a minimum of six (6) peer reviewed journal articles and other sources (e.g., books; business press articles) as required to underpin your arguments presented in this essay.
Answer
Executive Summary
This marketing strategy case study highlights the significance of the e-commerce industries have brought in growth and technology and are adopted by several users. Deligram is known for the adoption of the omni-channel marketing strategy in order to boost its growth. The outline of the report will be emphasized on marketing strategies that are important for the growth of the business. With the onset of digitalization and the fast pace of the business, several companies in Bangladesh have adopted the use of online mediums and applications to reach out to their customers. The Deligram marketing strategy case study highlights problems and issues that are faced by the business.
Introduction
Entry of new businesses in a market can be exposed to various threats and opportunities. This marketing strategy case study will be discussing the case study of Deligram in Bangladesh and the ways in which the business has established its process within their selected market. In the study, there will be discussions regarding the issues that the chosen company has faced while entering the business. Detailed analysis of the problem will be discussed in this marketing strategy case study, which will help in understanding the steps that this organization could have taken to avoid such situations. On an addition, there will be information about the strategies that Deligram used for operating their business in this market location. Apart from this, the marketing strategy case study will even focus on the areas that the business could have focused more on to create better business out of their process.?
Company Overview
The idea of this business came in mind of Waiz Rahim from the global e-commerce leading brands Amazon and Alibaba. The main motive of this firm as discussed on the marketing strategy case study is to provide e--commerce facilities to near about 180 million people of Bangladesh. Prior to its starting up financial support was one of the main issue, for which the business raised around $3 million from the investors. The entrepreneur did not started the business alike other e-commerce leaders (TechCrunch, 2019). Moreover, he planned to make its business both online and offline with the aid of agent model. The business focuses on increasing their agent base for better deliveries to their targeted consumers. Rahim developed its own tablet, which he supplied to selected mudir dokan stores. This allowed the stores in receiving orders which are not even their product lines. This has even allowed the small stores in increasing their customer base creating better support to the company as the result.
Business Problems/ Situational Analysis
The main problem that is in operation in Bangladesh for the young startup Deligram, are the issues of flood branding and funding issues. Although the business has been highly influential in providing quality services for their customers, it also brings in a competitive idea that affects the functioning of the business. The key issue identified on this marketing strategy case study is the company’s high, rate of the internet that can affect the functioning of the company. The company also faces any absence of legal laws that can affect the customers purchasing from the company; using cyber terrorism. In the words of Johan (2017) the entrepreneurs in Bangladesh are faced with the issue of the mix of ‘overseas venture’ that cab affect the functioning and the productivity of the business.
Therefore, as per the situational analysis, faced by the business, funding issues are one of the major concepts that can affect the business. The idea of investment is a particularly imperative issue, as it highlights the various ways the business is affected while trying to make the use of the consumer financing options that would help in the growth of the company. Therefore, as investors and other competitive companies are on the rise the businesses focus centrally on the use of the better investment that would help it to position itself against its competitors on this marketing strategy case study.
Business Model used by Deligram
The business approach initiated by Deligram for the provision of its high tech and quality services is through the utilization of the hybrid approach. The hybrid approach that is used by entrepreneurs to improve the product delivery methods. The hybrid approach is imperative and lucrative for the business as it incorporates the use of e-commerce websites and applications that integrate with the use of offline channels and models. The Omni-channel marketing model takes into account the use of the offline and the online factors that have an impact on the growth and productivity of business.
The business model that is utilized to analyze this marketing strategy case study is digital and makes the use of the methods that affect the business and help the customers to realize its potential in the market of Bangladesh (Piotrowicz, and Cuthbertson 2019). The symptoms and underlying causes of the issues provide an understanding of the various ways the company can adopt the use of improvement of the deliveries for the purpose of their business. Hence, with the understanding of the various methods, the companies will be able to port in the best services, which are imperative for the management of the company.
Issue Analysis
The company Deligram is faced with environmental and firm related issues that can affect the productivity and functioning of the business. Hence, in order to comprehend the issues of branding that can affect the business such as connectivity issues, financial issues, and improper inventory management. Therefore, it is important to comprehend the factors of the competitors that are in operation in the business. Therefore, a Pestle analysis for Bangladesh will be highlighted for a better and comprehensive understanding of the marketing strategy case study. Deligram is faced with the funding issue, as its competitors take over the market as indicated by the tech industries such as Sohoz. Therefore, there is increase in the number of entrants that are making an entry into the market domain.
In the words of Nahid and Ahmed (2018), e-commerce has seen a significant rise amongst it users. It has also accounted for the E-commerce technology company Deligram being charged with a number of issues. These issues range from the use of comprehending the various competitors that are in operation in the market. One of the major issues, faced by the company is financial costs. Although the company has managed to increase and boost the size of its business, and providing better performance, it can improve its customer acquisition channel.
Porter’s Five Forces Analysis
It is important to comprehend the factors that affect the functioning of the business in a better manner. It is important to outline the competitors that affect the business of the organization. Therefore, the competitors of the business are Shohoz, Pickaboo Pathao, which have launched the understanding of the new segments of its market. The major forces that affect the business will be analyzed on this marketing strategy case study in terms of understanding the industry attractiveness of the market.
Threat of new entrants: The threat of new entrants is low as the company is being faced with new competitors entering the market to set its competitors at the Bangladesh. Therefore, the competitors in Bangladesh are imperative as it sets a high mode of market entry using the omni channel techniques in business. The service of the business requires huge investment cannot be borne by the country. This will have an impact on the functioning discussed on this business marketing strategy case study and hence the competitors will not be able to mimic the growth of the business.
Bargaining power of suppliers (moderate): The bargaining powers of suppliers are moderate because the company initiates in the use of suppliers that deliver the product to the business. Therefore, suppliers have the power of switching if the rival companies of Deligram are able to provide better payments for each delivery.
Bargaining power of buyers (high): The buying power of the buyers is high, as the customers have the power of making decisions and choices while making purchases. This portrays that the buyers can switch when exposed with a better option as discussed on this marketing strategy case study. The rival competitors might pry into the functioning of the business and hence, this proves that Deligram would have to set its business as per the required for the business.
Threat of substitutes (low): As per the competitive analysis that affects the company Deligram, the business is exposed to low threat of substitutes. This is imperative, as the business is able to provide every type of product that is required by the customers. This shows that the Deligram does not pose any difficulties that might affect the customers while making viable choices.
Rivalry among competing firms (high): The rivalry amongst the competing firms of Bangladesh provides an understanding of the competitors that affect the business in a better manner. Hence, the competing firms that are in operation in Bangladesh are companies such as Pickaboo Sohoz and so on.
Therefore, the competitive analysis explored on this marketing strategy case study provides an understanding of the issues, which are faced by Deligram. This shows that the business should enhance their omni-channel model and modify their inventory and supplier change logistics that are a part of the business.
The target audience of the market is the youngsters that affect productivity and the business and has an impact on the functioning of the business in an imperative manner. The market is segmented in the confines of Bangladesh and applies an understanding on the understanding of the various consumers that are a part of the business.
Marketing strategies Alternatives
While over viewing the case study, it is understood that the business is lacking in its infrastructure. Locating the addresses of the customers is one of the main issues that the business is facing while delivering their goods. The case study even reflects that the customers need to pay extra amount for their complex address, which the technology of the business is failing to meet. This is affecting the business in an adverse manner because; it can create a scope for other competitors to provide the same product in the same location in a cheaper manner. This can affect the image of the business. With the proper development of local teams in selected areas can help the business in delivering the product to the concerned customer in a fluent manner, providing seamless experience to them.
Branding is again an issue, which was understood from the case study. This is one of the most essential parts of business marketing. It is essential for any businesses to reach their customers in an effective manner in order to gain their trust and attention, leading to better generation of sales. Many of the people in Bangladesh are still not aware of e-commerce businesses (Dspace.bracu.ac.bd, 2019). This shows that it is essential for the business to reach them offline with proper campaigning; this can help the firm in educating the targeted customers about their business process in an effective way. Main risk that this business has to face is the absenteeism of laws related to cyber crimes. This impact the loyalty and trust factors of the customers and it will reduce the number of online transactions, leading to restricted sales. In order to compete this, the organization can merge their online payment with secured platforms, which can aid the business in gaining the trust of their consumers.
Poor connection of internet is another infrastructural disability that the economy is Bangladesh is possessing and this is can affect the business immensely (Dspace.bracu.ac.bd, 2019). The main motive of this firm is to establish a flawless online business platform and for that, it is essential to have proper internet facilities among their targeted customers. The strategy that the business can use is to merge itself with the most preferred telecommunication firm of Bangladesh, in order to perform flawlessly. Efficiency of the delivery partners are not up to the mark and it is essential for the business developer to determine the issues that their customers are facing while receiving or ordering any product from them. The strategy that the business can practice is CRM. With the help of CRM, the organization can understand the feedback of their customers regarding their process in the most accurate manner and this will help the developers in determining the key issues that their consumers faced while using their application.
The customers discussed on the marketing strategy case study have the main issue of receiving late deliveries and even cancellation of orders due to unavailability. With the alignment of CRM technologies within their developed application, the firm can make proper tracking of their inventories and can even predict their future customer demands, which will be aiding the business in providing the needed products to their consumers, leading to better management of them (Neubert et al., 2018). Moreover, late deliveries are another area that the business needs to fix prior to grow their market reach. It is necessary for the business to make proper management of their developed application, which can help them in managing the customers more effectively. It is better to let the customer know the unavailable product prior to their selection of orders for delivery than letting them know it afterwards. This creates negative impact on the brand image (Breugelmans et al., 2018).
Additionally, to create better image of the brand it is essential for the business to keep the made promise, which is to deliver the product within the given time. With the alignment of their developed application with the CRM technologies, the business can even understand the performance level of their logistic suppliers and other elements of their supply chain. This will help the firm in determining the most beneficial one for them, which will allow the business to grow more in their near future. It is witnessed that Deligram is not as fast as the other e-commerce businesses that are there in the same market location, which can become a threat for the business in the future (Dspace.bracu.ac.bd, 2019). At this marketing strategy case study scenario, the business can use the strategy to provide value added services, which can help the firm in competing with the existing rivals in the market.
Conclusion and Recommendations
It can be recommended to the business that prior to enlarge their market reach the business should focus on providing quality services to a smaller market area, which will help the business in receiving a better customer’s base for itself. This will help the business in generating the needed revenue, which the business can use for their future developments. It is relevant for the business to understand the needs of the customers, which can help the business in managing their inventories in the most efficient manner, creating proper stocking of products, leading to better sales and profits. Furthermore, it can even be recommended to the developer to understand the values that they create through their extra services among the customers, which can help the firm in developing a loyal customer base.After the accomplishment of the study, it can be concluded that many times the business fails in providing the required products, which is creating the scope for the available competitors in competing them. It can even be concluded that the business are lacking in various areas of their business process, which they need to analyze in an accurate manner in order to mitigate those effectively. It is essential for the business to select the most beneficial supply chain elements in order to maximize their profit generation discussed on the marketing strategy case study.
Reference List
Breugelmans, E., Gijsbrechts, E. and Campo, K., 2018. Product unavailability. Handbook of Research on Retailing, p.20 2.
Dspace.bracu.ac.bd. (2019). [online] Available at: http://dspace.bracu.ac.bd/xmlui/bitstream/handle/10361/11483/15204081_BBA.pdf?sequence=1&isAllowed=y [Accessed 30 Aug. 2019].
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Nahid, M.H. and Ahmed, R., 2018. Facebook Pages vs Websites: A Dilemma for E-Commerce Industry of Bangladesh. Journal of Applied Management and Investments, 7(1), marketing strategy case study pp.61-69.Available at: http://www.jami.org.ua/Papers/JAMI_7_1_2018_61-69.pdf
Neubert, G., Ouzrout, Y. and Bouras, A., 2018. Collaboration and integration through information technologies in supply chains. arXiv preprint arXiv:1811.01688.
Piotrowicz, W. and Cuthbertson, R., 2019. Exploring omnichannel retailing: Common expectations and diverse reality. In Exploring Omnichannel Retailing (pp. 1-10). Springer, Cham.. Available at; https://e-edu.nbu.bg/pluginfile.php/1018674/mod_resource/content/1/Wojciech_Piotrowicz%2CRichard_Cuthbertson%20-%20Exploring%20Omnichannel%20Retailing%202019.pdf#page=13
TechCrunch. (2019). A young entrepreneur is building the Amazon of Bangladesh – TechCrunch. marketing strategy case study [online] Available at: https://techcrunch.com/2019/05/21/deligram/ [Accessed 30 Aug. 2019].
