Case Study on Bangladeshi Fashion House 'Sada Kalo'
Analysis of a Bangladeshi Fashion Brand: Sada Kalo
A comprehensive examination of leading fashion house 'Sada Kalo' in Bangladesh has been undertaken. This case study is based on a SWOT analysis and findings derived from on-site visits to the fashion house.
Interview Insights with 'Sada Kalo'
The current predicament of 'Sada Kalo' can be encapsulated as follows:
The fashion house struggles with systematic and instantaneous Research and Development, insufficient market analysis and planning, coupled with a lack of coordination, leading to challenges in business expansion.
Understanding the Challenge
Though 'Sada Kalo' enjoys a prominent market status, it is not benefitted from proper organizational planning, streamlined supply chain procedures and effective marketing strategies. The brand aims to present uniqueness and exclusivity in its design, yet its implementation falls short of making a significant impact in the market.
Central Concerns
- Inefficient organizational hierarchy
- Inadequate market research
- Lack of inventory control and management
- No follow-up on supplier production processes
- Inappropriate forecasting of promotional budgets
- Absence of an independent HR department
- No integrated Enterprise Resource Planning (ERP) system
- Inadequate spontaneous R&D team
- Lack of business expansion outside the capital city and leading market areas
- Post-production promotion strategies rather than pre-production promotion
- Perception-based promotional strategies with limited use of resources
- irrational outlet opening and closing, often due to insufficient facility location analysis.
SWOT Analysis
Refer to SWOT Analysis for Sada Kalo
Key Corporate and Marketing Strategies
Corporate Strategies
- Broad adoption of a flat management policy
- Empowered planning department with decisive influence
- Reporting management through a centralized corporate office
- Streamlined communication via documents and software
Marketing Strategies
- Focus on offering unique, special, and articulate products
- Maintaining a fixed percentage of product mix
- Catering to the mid-income market segment
- Offering traditional wear with designer models, while keeping production in limited quantities
- Pricing strategy offering authentic designs at higher prices and moderately-priced items for the middle-income consumers
- Supplier pricing based on pre-paid indemnity, with discounts and leveled pricing for stock clearance at June–July
- Product distribution via two outlets daily, using a single vehicle
- Implementing separate teams for incoming and outgoing entries while monitoring warehouse conditions during distribution
- Ensuring re-shuffling of finished goods warehouse products and outlet products based on sales
- Allocating promotional expenses amounting to 3-4% of annual revenue
- Preparing the promotional budget by the planning department
- Leveraging TV commercials, monthly magazine covers, and newspaper ads for promotion
- Associating two public faces with the brand, who do not represent other brands
Suggestions for 'Sada Kalo'
- Implement a defined organizational hierarchy
- Consduct market research and analysis before designing and planning
- Adopt proper inventory control and an integrated ERP system for smoother supply chain management
- Establish regular supplier production and quality follow-ups
- Increase promotional budget allocation
- Embrace digital marketing policies, such as email marketing and virtual presence
- Conduct facility location analysis before opening outlets
- Develop growth plans for expanding business beyond Dhaka
Future Outlook for 'Sada Kalo'
Boasting a strong reputation within Bangladeshi markets, 'Sada Kalo' has a promising future. By adhering to proper organizational culture, pre-market analysis, and targeted marketing and promotion strategies, Sada Kalo can reach even more customers. Though relying on some perception-based business policies, the brand already attracts its customers with a traditional choice. Looking ahead, Sada Kalo, hopefully, will broaden its reach by considering regional and international expansion with diversified collections, innovative designs, and short lead times.
Additional Factors Influencing Sada Kalo’s Success
- Emphasis on storytelling through designs to convey cultural narratives and heritage
- Partnerships with local artisans and workshops to maintain cohesion with cultural roots
- Investment in employee training and upskilling to stay abreast of industry trends and techniques
- To elevate their product offerings, 'Sada Kalo' could explore expansions in the fashion-and-beauty supply chain, collaborating with more local artisans and workshops to maintain cultural relevance and exclusivity in their designs.
- In order to improve the financial health of the business, 'Sada Kalo' might consider investing in digital marketing strategies such as email marketing and increasing their online presence, which has become an essential aspect of the lifestyle sector in modern times.
- To strengthen their brand's appeal both domestically and abroad, 'Sada Kalo' could diversify their apparel collections by introducing more innovative designs with shorter lead times, catering to a broader market and maintaining competitiveness in the fashion industry.
