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Daraz STP Strategy in Bangladesh

Daraz uses segmentation, targeting, and positioning strategies in Bangladesh. It segments the market by geographic, demographic, psychographic, and behavioral variables. Initially it targeted Dhaka but has expanded nationwide. It targets young, middle to high income groups and those with urban lifestyles as most internet users in Bangladesh are young. Daraz positions itself as a digital marketplace that offers a wide range of products at various price points to appeal to different income segments.

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Sheraz Khan
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611 views2 pages

Daraz STP Strategy in Bangladesh

Daraz uses segmentation, targeting, and positioning strategies in Bangladesh. It segments the market by geographic, demographic, psychographic, and behavioral variables. Initially it targeted Dhaka but has expanded nationwide. It targets young, middle to high income groups and those with urban lifestyles as most internet users in Bangladesh are young. Daraz positions itself as a digital marketplace that offers a wide range of products at various price points to appeal to different income segments.

Uploaded by

Sheraz Khan
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
  • Segmentation, Targeting, And Positioning Strategy of Daraz

 

Segmentation, Targeting, And Positioning Strategy of Daraz


Daraz is an International brand mostly popular in South Asia and Southeast Asian countries.
It’sa digital platform where buyer and seller are engaged in trading, most of the marketing
strategyand marketing activities are performed digitally.
 
The method of segmentation, targeting,
and positioning (STP) is an important concept within the marketing research and work. The l
ettersSTP exists for segmentation, targeting, and positioning. The STP strategy of
Daraz is quitedifferent from other offline [Link] my assigned country is Pakistan
and Bangladesh and I choose Daraz because it operates
its business in both countries as well as needs digital involvement. Another reason is both are
Muslim country so there are some similarities among both
countries.I n   t h i s   r e p o r t ,   I   w i l l   s h o w   h o w   D a r a z   i s   D o i n g   t h e i r   S T P  
i n   B a n g l a d e s h   a n d   P a k i s t a n respectively-
3.2 Market Segmentation of Daraz Bangladesh:
Daraz Bangladesh segmented its market in the dierent market variable which discussed in
the below-5 |P a g e

 
3.2.1 Geographic variables:Initially Daraz Bangladesh segmented its market with the
whole country. In 2013 when DarazBangladesh started its operation they were
trying to capture the largest market share of the E-commerce sector in
Bangladesh. However, to make the operation easier, it later divided themarket
based on the city. They concentrated primarily on Dhaka, Chittagong, Comilla, Rajshahi,and
other big, major cities. Just because of online and digital activities Daraz is
successful tograb the whole country and serving the whole nation very efficiently.3.2.2
Demographic variables:A component in the Demographic segment is age,
employment, gender, family-life cycle. Interms of age, they concentrate on selling
electronic devices primarily to the younger
generation.A l s o ,   t h e   y o u n g   g e n e r a t i o n s   a r e   n o w   c o n s c i o u s   o f   t r e n d s  
a n d   t e c h n o l o g y ,   t h e y   a r e   n o w demanding these types of products. However, on
the Daraz website I saw they have all kinds of  products and services for kinds of people.
They’ve got baby products for the elderly. It indicatesthat Daraz doesn’t not want to choose
one single segment rather they want to choose all types of segmentation. They choose all
types of individuals, in terms of family and income. Therefore,since it offers all
sorts of items from a modest budget to a very large budget, it can be assumedthat from the
upper middle class to high-income people it aims to meet all the families. The aimsof the
Daraz is to reach out the people who don’t have any internet connection.3.2.3 Psychographic
variables:This company's psychographic component is of social status, lifestyle,
temperament. It alsowants to branch out from the upper higher class to lower social class
men. two things related toone's purchasing decision. Lifestyle, taking of risk, leadership
characteristics are considered byDaraz Bangladesh. Therefore, as Daraz is a digital
marketplace, it also puts significant focus onits demographics to clarify 'who' the customer is,
psychographics tells you 'why' the buyer [Link], it put special focus on internet
users such as Facebook, Twitter, mail users as itsimportant buyer of the goods.3.2.4
Behavioral variables:The ability, advantages, customer level, use levels, engagement level,
readiness period, andattitude toward the commodity is a behavioral factor. Daraz Bangladesh
uses purchasing
6 |P a g e
 
 behavior, use of goods, benefit sought and heavy, medium-light users.
[ CITATION Dar201 \l 1033 ]
 It does not just address heavy consumers, as this may allow possible segments to be missed.
3.3 Targeting Strategy of Daraz Bangladesh:
Daraz Bangladesh uses differentiated  marketing strategy, that is also kn
o w n   a s   s e g m e n t e d marketing. Dhaka was their first targeted city. Gradually
they have increased their customer inthe whole country. In demographic
 
segmentation, they targeted the young generation and middlet o h i g h e r i n c o m e g r o u p s
because in Bangladesh most of the internet users are the
y o u n g generation, A study showed that about 88% of users in Bangladesh is the
young generation.
[CITATION MdT18 \l 1033 ]
 They also
 
considered lifestyle and personality. Their target is certainfashion-conscious people.
They often use these periodic behavioral factors. Every year Darazintroduced all
day’s special deals including in Pahela Boishak, Valentin day, Black Friday, Eidfestival, and
so on.
3.4 Positioning strategy of Daraz Bangladesh

Common questions

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Focusing on internet users is significant for Daraz's market strategy as it aligns with the core digital nature of its platform. By targeting users who actively engage on Facebook, Twitter, and other online services, Daraz taps into a tech-savvy demographic that is crucial for e-commerce. This focus allows for targeted digital marketing and customer engagement, facilitating growth and maintaining competitiveness in the online retail sector .

Daraz's strong online presence is crucial to its STP strategy, particularly in Bangladesh and Pakistan, where digital involvement is significant. The digital platform enables extensive market reach and efficient management across geographic segments. Daraz's use of social media and digital marketing tools connects with tech-savvy younger generations, ensuring wide product accessibility and enhanced customer engagement across diverse demographic and psychographic segments .

Daraz leverages behavioral segmentation by analyzing purchasing patterns, usage levels, and customer attitudes towards products. It classifies customers as heavy, medium, or light users, ensuring no potential segments are overlooked. This focus allows Daraz to tailor marketing strategies based on customer engagement and benefit sought, enhancing product offerings and customer satisfaction in the competitive online marketplace .

Daraz Bangladesh adapts its STP strategy by aligning its demographic targeting with psychographic insights. It caters to young, internet-connected individuals while considering lifestyle attributes and social class differences. This dual focus allows Daraz to offer products that match consumers' technological preferences and lifestyle needs, creating a personalized shopping experience that strengthens brand loyalty and market presence .

Daraz Bangladesh initially segmented its market by covering the entire country to capture a large market share in the e-commerce sector. To streamline operations, it later segmented the market based on major cities such as Dhaka, Chittagong, and Rajshahi. This geographic segmentation allowed Daraz to target and manage different regions effectively while maintaining an extensive reach due to its digital platform .

Daraz Bangladesh uses a differentiated marketing strategy, targeting various segments with specific needs. Initially focusing on Dhaka, Daraz expanded to cover the entire country. It targets young internet-savvy users, primarily from middle to higher-income groups. By combining demographic targeting with lifestyle and personality considerations, Daraz offers special deals during festivals and occasions to attract fashion-conscious consumers and reinforce customer loyalty .

Demographic variables such as age, employment, gender, and family life cycle significantly influence Daraz's marketing approach. Daraz focuses primarily on selling electronic devices to the younger generation, who are trend and technology-conscious. Moreover, by offering a wide range of products across different price points, Daraz caters to various income groups from upper-middle-class to high-income households, ensuring coverage of diverse demographic segments .

Daraz effectively segments the market by taking lifestyle and personality traits into account, targeting fashion-conscious and trend-sensitive customers. This approach helps Daraz tailor specific products and promotions that resonate with individual consumer preferences and habits, enhancing customer engagement and creating niche markets within the broader e-commerce space .

Psychographic variables such as social status, lifestyle, and temperament are crucial in Daraz's segmentation strategy. The company targets people across social classes and considers lifestyle attributes and characteristics like risk-taking and leadership. By focusing on internet users who frequent platforms like Facebook and Twitter, Daraz identifies customers' 'why' behind their purchase decisions, allowing it to tailor offerings that align with customers' lifestyles and preferences .

Daraz targets a comprehensive demographic across different segments rather than focusing on a single group. By offering products ranging from baby items to high-end electronics, Daraz serves diverse customer needs. This strategy allows it to capture a larger market share by catering to different family sizes and income levels, from modest to high budgets, increasing its appeal and market penetration .

 Segmentation, Targeting, And Positioning Strategy of Daraz Daraz is an International brand mostly popular in South Asia and
   behavior, use of goods, benefit sought and heavy, medium-light users. [ CITATION Dar201 l 1033 ]  It does not just addres

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