Assignment

On

“Supply Chain Management of MAERSK Group- Damco”

SUBMITTED TO
Mahmud Wahid
Assistant Professor
Green Business School
Green university of Bangladesh

Submitted By:

Zishan Mahmud Gazi

ID No:182005013

MBA(Green Business School)

Supply Chain Management System of Agora
What is Supply Chain Management?
Supply chain management (SCM) is the active management of supply chain activities
to maximize customer value and achieve a sustainable competitive advantage. It
represents a conscious effort by the supply chain firms to develop and run supply
chains in the most effective & efficient ways possible. Supply chain activities cover
everything from product development, sourcing, production, and logistics, as well as
the information systems needed to coordinate these activities.

The concept of Supply Chain Management (SCM) is based on two core ideas:

1. The first is that practically every product that reaches an end user represents
the cumulative effort of multiple organizations. These organizations are
referred to collectively as the supply chain.
2. The second idea is that while supply chains have existed for a long time, most
organizations have only paid attention to what was happening within their
“four walls.” Few businesses understood, much less managed, the entire chain
of activities that ultimately delivered products to the final customer. The result
was disjointed and often ineffective supply chains.

The organizations that make up the supply chain are “linked” together through
physical flows and information flows.

Physical Flows
Physical flows involve the transformation, movement, and storage of goods and
materials. They are the most visible piece of the supply chain. But just as important
are information flows.

Information Flows
Information flows allow the various supply chain partners to coordinate their
long-term plans, and to control the day-to-day flow of goods and materials up and
down the supply chain.

Supply Chain Management of DAMCO:

Damco is one of the world’s leading providers of supply chain management and
freight forwarding solutions. We offer integrated end-to-end logistics services
and manage some of the world’s most advanced supply chains.
Damco is part of Maersk Group, and services over 10,000 customers globally ranging
from large multinationals to smaller independent importers/exporters and local
businesses.
About Agora: Bangladesh entered the ‘supermarket era’ on August 24, 2001 with
Rahimafrooz Superstores Ltd. launching Agora, a retail chain superstore in
Bangladesh, introducing a new way to shop. The company has already opened four
outlets – Rifles Square, Gulshan Avenue, Maghbazar and Mirpur Zoo Road in Dhaka
– and many more are in progress in
Chittagong and other cities of the country.

The superstores are open from 9 am to 8 pm

every day. Rush of customers is experienced
in the morning and evening. Most of the
employees of Agora are young and
well-educated, some with Masters and MBA
degrees.

Agora superstores are currently focused in food retailing, ranging from a wide variety
of fresh vegetable, fruits, meat and fish to grocery, bakery, dairy, personal and
household products. Agora provides its customers with guaranteed quality and
freshness. It carries more than 30,000varieties of products and has plans to expand its
product portfolio to carry other ranges of consumer products in the coming years. It
aims at building a chain of more than 40 superstores by year 2010.
Other supermarket brands have since emerged but Agora continues to be the leader
and trendsetter. Agora has been the venue of launching of Thai products, which have
by now become commonplace. Californian apples were launched here as have been
Agora buys products direct from the growers, which benefits the latter as well as the
customers. The products are procured under the direct supervision of its officials who
maintain strict procurement and marketing standards. Products on the shelves are
regularly monitored for expiry dates.
Australia’s red apples, and crystal products from France were unveiled here. Unilever
chose to launch L’Oreal range of cosmetics at Agora superstores. The big-sized
‘Boroi’ so common in the market was launched here. Recently the scientist behind the
cultivation of Strawberry in Bangladesh launched the delicious fruit at Agora.
Over 8 million have purchased products at
Agora since the opening of Agora’s fist
superstore, with 2,000 customers using the
Agoras every day on an average. Rifles
Square and Gulshan supermarkets pull more
crowd than the other two. Customers prefer
using both cash and credit cards.
Agora constantly launches attractive
promotions like Bazimat, Value Week or
Super Value Offer or Diamond Ring Offer.
The promoter of the Agora project, Rahimafrooz, is one of the most respected
companies in Bangladesh manufacturing and marketing stored power systems for the
automotive industry. All of Rahimafrooz’s activities are in the service sector, focusing
on consumers, an official of Agora’s operating company Rahimafrooz Superstores
Ltd., said.

The Agora project was a ground-breaking project that underlines the potential for
harnessing the latent market in Bangladesh, said an executive of a leading corporate
house adding, they have produced a service offering of international standard.

Company Information: The Rahimafrooz journey dates back to the early fifties
when Late Mr. A C Abdur Rahim founded a small trading company and paved the
way for making of one of today’s leading Bangladeshi business conglomerates. Over
the decades, Rahimafrooz has grown in size, scale, and diversity. The Group today
has seven Operating Companies (SBUs), three other business ventures, and a
non-profit social enterprise. As of 2007, the Group currently employs more than two
thousand people directly and a further twenty thousand indirectly as suppliers
contractors, dealers and retailers. Rahimafrooz operates in three broad segments –
automotive after market, power and energy, and retail. While our Group activities are
coordinated from the Rahimafrooz Corporate Office (RACO), we have eight Strategic
Business Units (SBUs), three other business ventures, and a not-for-profit social
enterprise.
Rahimafrooz strengthened their market leadership at home while reaching out to
international markets. Ranging from automotive after market products, energy and
power solutions, to a world class retail chain – the team at Rahimafrooz is committed
to ensuring best in class quality standards and living the Group’s four core values –
Integrity, Excellence, Customer Delight and Innovation.

Supply Chain Management of Agora: Here we will mainly discuss the

distribution process of Agora’s product to their customer. Actually Agora doesn’t
produce any product. They buy their product from local market than they refine their
product for their customer. Then they store their product at their show room. Then
they rearrange their product under their whole branches. Then they sell their product
to their customer. Their main motive is “we will your product”.

Figure: supply chain model of Agora

The Marketing strategy of Agora: In this part of this report we will describe agora’s
packaging and branding system, how they position their product, how they distribute
their product, how they communicate with consumers.
Packaging:
After collecting grocery products, it is purified, graded according to size (for example
potato, fish, and spices) and then it is sold in particular packets with reasonable price.
For fish it is kept in ice rapping with packet.

Branding:
Agora maintain Brand image. Their motto in branding is “right price right quality”
removing the fear of customer about product’s quality. They always try to sell brand
products which assure good product and service quality. For which every year they
are adding many local and foreign products and service to customer. For adding new
products they run survey on consumer to know their expected products.
Marketing process:
Marketing process
At first they do marketing their products and then they turn their activities in
operation and after that they ensure the availability of that product when the
consumers want these products

 Agora's growth over the last 6 years has involved a transformation of its
strategy and image. Its initial success was based on the "Pile it high, sell it
cheap" approach of the founder management of Rahim Afrooz. The
disadvantage of this was that the stores had a poor image with middle-class
customers. In the year 2001 Agora's brand image was so negative that
consultants advised the company to change the name of its stores. It did not
accept this advice, yet by early 2003 it was the largest retailer in Dhaka, with a
29.0% share of the grocery market according to retail analysts TNS
Superpanel, compared to the 16.8% share of ASDA and 15.6% share of
third-placed NANDAN, which had been the leading competitor until it was
beaten by Agora in 2004.

Key reasons for this success include:

 An "inclusive offer". This phrase is used by Agora to describe its aspiration to

appeal to upper, medium and low income customers in the same stores.
According to Citigroup retail analyst David McCarthy, "They've pulled off a
 trick that I'm not aware of any other retailer achieving. That is to appeal to all
segments of the market”. By contrast ASDA's marketing strategy is focused
heavily on value for money, which can undermine its appeal to up market
customers even though it actually sells a wide range of up market products.
During its long term dominance of the supermarket sector Nandan’s retained
an image as a high-priced middle class supermarket which considered itself to
have such a wide lead on quality that it did not need to compete on price, and
was indifferent to attracting lower-income customers into its stores. This
strategy has been abandoned since losing the number 1 spot to Agora and
particularly since the adaption of new management in 2004 that has
established a new customer-focused strategy closer to that of Agora

 One plank of this inclusively has been Agora's use of its own-brand products,
including the up market "Finest" and low-price "Value". The company has
taken the lead in overcoming customer reluctance to purchasing own brands,
which are generally considered to be more profitable for a supermarket as it
retains a higher portion of the overall profit than it does for branded products.

 The management in the mid 2000 has taken the bold step of trying not to
focus on the usual corporate mantra of "maximizing shareholder value". The
company's mission statement reads, "Our core purpose is, 'To create value for
customers to earn their lifetime loyalty'. We deliver this through our values,
'No-one tries harder for customers', and 'Treat people how we like to be
treated'". The underlying aim is of course to make higher profits, but there is a
clear focus on customer service at the top level of the company.

The Company has a three-pronged strategy:

 Core Dhaka business" - That is, grocery retailing in its home market. It has
been innovative and energetic in finding ways to expand, such as making a
 large-scale move into the convenience-store sector, which the major
supermarket chains have traditionally shunned

 "Non-food business" - Many supermarket chains have attempted to diversify

into other areas, but Agora has been exceptionally successful. By late 2004 it
was widely regarded as a major competitive threat to traditional high street
chains in many sectors, from clothing to consumer electronics to health and
beauty to media products. Agora sells an expanding range of own-brand and
as well as local and international non-food products, including non-food Value
and Finest ranges. It also has done quite well in non-food sales in Ireland. CDs
are one of the best examples, with Agora Gulshan promising to sell all chart
CDs (except compilations) for Tk.50.00 compared with local Music Stores
selling the same for around Tk. 70.00.

 "Retailing services" - Agora has taken the lead in its sector in expanding into
areas like dairy and utilities. It usually enters into joint ventures with major
players in these sectors, contributing its customer base and brand strength to
the partnership. Other supermarkets in Dhaka have done some of the same
things, but Agora has generally implemented them more effectively, and thus
made most profit.

Communication strategy of Agora:

Major Advertisement tools:

Print Media 1) Newspaper (daily prothom alo,

jugantar, daily star etc)

2) Magazine (adandaloc,
weekly2000 etc)

Broadcast media 1) Television (channel I telecast program based on

agora 3times is week, recently it is off.)
 2) Radio (FM Radio today,
ABC, and FURTI).

Internet and website: in website agora has own website

name-----www.agorabd.com.In which they provide variety of information about
agora.
Sales promotion: Type of sales promotion,
Consumer promotion 1) in special occasion like Eid, Christmas and
after 2or3 month later they provide discount on buying certain amount of product.
2) If anyone buys
membership card, he or she get the 400tk valued gift on buying 20000tk valued
products or service.
Major Public relation tools: In public relation, Agora sponsors the various kinds of
events such as: concert is Fantasy kingdom, Nandan and various social activities such
as blood donation etc. Besides it has own website by which they make relation with
consumer. By personal relation Agora want to build a good corporate image in
consumers and in the all superstores.
Direct marketing: In direct marketing to communicate with consumers Agora direct
mail, SMS, e-mail etc.

SWOT Analysis of Agora: A SWOT analysis identifies and assesses the strengths,
weaknes
ses,
opportun
ities and
threats
an
organiza
tion
faces.
SWOT
analysis
of the
Agora
illustrate
s to
upper
management what the company is excelling in, what improvements need to be made,
where growth is possible and what preemptive measures need to be taken to protect
shareholder or company value.
STRENGTHS:

 They follow "Pile it high, sell it cheap"

 Approach of the founder management of Rahim Afrooz.
 They build up a very strong relationship with the
customers.
 That is the main strength of their business.

WEAKNESS:

 The disadvantage of Agora’s approach that is “Pile it high, sells

it cheap” was that the stores had a poor image with
middle-class customers.
 In the year 2001 Agora's brand image was so negative that
consultants advised the company to change the name of its
stores.

OPPORTUNITIES:

 As all the leading retail stores are Dhaka based.

 Most of them do not have any outlet in any other districts.
 Except Chittagong, Agora is going to launch four new retail
stores in the main districts of Bangladesh.

THREATS:

 Rising prices of raw materials and fuels.

 Change in fiscal benefits/ laws.
 People attraction and retention.

Recommendation for the Agora: With multiple stores in Dhaka, Agora is a leader in
superstore retail organizations. The combination of quality and price under various
brand name offers customers value for their money. We have examined and evaluated
the operations of Agora, LTD including its strengths and weaknesses. we recommend
the following in order to ensure continued success for the future of all Marks and
Spencer stores:

 Find alternative sources to supply resources to Marks and Spencer stores

abroad.
 Increase marketing efforts.
 Strengthen existing resources, add complementary resources, and develop new
resources.
Evaluation of Current Objectives and Current Strategy.
Conclusion: The name of Agora is entwined with the glory of-the Agora’s marketing
policy “to create a better environment for consumers”. A man gifted with an inherent
entrepreneurial sense, Late A. C. Abdur Rahim, the founder of Rahim-Afrooz started
a trading house in 1973, which continued to expand in scope and nature as time went
along. In 2000, Agora was introduced to the world. The success was immediate as
there was a demand for such business in the local market. Agora's state-of-the-art
technology and creative strategy gave it an edge ocher its competitors at local market.

Agora is a Dhaka-based supermarket chain. It is the largest retailer, both by local sales
and by domestic market share, and the the largest retailer in Dhaka leaving behind
PQS, Meena Bazar, Nandan Mega Shop, Pacific, Pick and Pay, Etc, Shop & Save and
others.
Originally specializing in food, it has moved into areas such as clothes, consumer
electronics, consumer financial services, selling and renting DVDs, compact discs and
and consumer telecom accessories.
Agora Ltd. is an enterprise that combines industry and trade, mainly engages in
retailing the quality products at the most lowest price in the market. The management
of Agora, was an enthusiastic advocate of trading stamps as an inducement for
shoppers to patronize their stores: They signed up with all types of quality products
manufacturer, and became one of the company’s largest clients. But the management
was a fan of pile it high and sell it cheap, and in the mid-2000 Agora faced many cost
problems associated with not properly integrating its purchased chains of stores.
When the firm overstretched itself opening few more outlets throughout the city,
management consultants were called in to sort out the mess. In 2001 Agora launched
Operation Checkout, an across the board price cutting campaign aimed at countering
the threat from the new breed of discounters such as Kwik Save.
Facing the world and looking beyond, Agora will always maintain the pure-hearted,
enterprising, quality and struggling spirit make efforts to scrupulously abide by our
goodwill, create splendid future together with you in management vision of joint
development, joint prosperity and mutual benefits.

References:
1. Mr. Harunur Rashid
Head of finance & accounts
Agora, Dhaka.

2. Mr. Bajan saha

Accounts manager
Agora, Dhaka.

3. www.agorabd.com
4. www.scribd.com
5. www.wikipedia.com
6. www.bdreport.com