Abstract

General Background: The global carpet industry continues to evolve amid rising consumer expectations for quality, sustainability, and innovation. Specific Background: SAG Carpet Company, a market leader in Uzbekistan, integrates traditional craftsmanship with modern production to offer high-quality carpets, artificial grass, and agricultural exports. Knowledge Gap: Despite its market presence, limited studies analyze how such heritage-based firms adopt strategic marketing frameworks in competitive international contexts. Aims: This study aims to evaluate SAG's comprehensive marketing strategy using SWOT, BCG Matrix, Marketing Mix (4Ps), and its dual-market (B2B and B2C) approach. Results: The analysis reveals that SAG's strengths lie in its vertically integrated production, diversified portfolio, and expanding global footprint. However, it faces challenges from increasing competition and shifting consumer trends. Novelty: This paper contributes by aligning traditional manufacturing values with digital transformation strategies, including smart carpet innovation, augmented reality retailing, and value-based pricing. Implications: The findings highlight strategic pathways for similar firms to sustain competitiveness by balancing cultural authenticity with technological advancement, offering insights for practitioners in emerging economies seeking global market integration.

Highlights: 

• Highlights SAG's integration of tradition and innovation in global marketing.

• Emphasizes strategic use of 4Ps and segmentation for market expansion.

• Recommends digital transformation to sustain competitive advantage.

Keywords: Marketing Strategy, SAG Carpet Company, SWOT Analysis, BCG Matrix, Value-Based Pricing

Introduction

Uzbekistan, a country known for its abundant cultural heritage, has long stood out as a central area for exceptional craftsmanship, specifically in the field of carpet making. The SAG Carpet Company is among the most valuable companies in carpet weaving in Uzbekistan and has combined various aspects, including the country’s artistic sensibility and innovative activity, to represent in the way of carpets [1]. SAG is a leading company in Uzbekistan that was established in 2000 and based at 14 Katta Uzbek Trakt, Samarkand, Uzbekistan. The company has grown into several branches of production consisting of the carpet manufacturing, the artificial grass production, and the agricultural products exporting [2]. Firstly, SAG was recognized in Central Asia as a quality carpet and rug producer, offering a full cycle of production, from yarn production to final product packaging, providing customers with high-quality, ecologically friendly carpets manufactured on cutting-edge technologies. This product line mainly serves as an interior home furnishing. Further, in 2013, under the name of “SAG Tuft and Grass”, the company opened another line that released artificial grass and tufting products, supplying both international and domestic markets. Also, SAG, under the name of “SAG Gardens”, initiated a project for the spacious planting of almonds and walnuts across more than 6000 hectares [3]. SAG introduced its products to global markets, like Asia, Africa, and America. Their dedication to continuous development of quality and novelty brought them to the top key players in the industrial and agricultural sectors of Uzbekistan. The goal of the article is to describe who the organization is both internally and externally giving a highlight on SWOT analysis, BCG matrix, Marketing Mix (4Ps), B2B and B2C business, and STP analysis [4].

Bibliography

1. Internal Analysis of SAG

SAG an abbreviation for Sam Antep Gilam, is a leading carpet manufacturing company based in Uzbekistan. Originally focused on selling Turkish carpets, SAG has transformed into a well-known global brand. With over 10,000 employees, the company is not only a leader in its industry but also provides additional services, such as a medical clinic under the brand [5].

Founded in 2000, SAG has become the largest carpet producer in the CIS region, operating two major factories in Samarkand and Khiva. By prioritizing quality control and innovation, SAG has not only maintained its competitive advantage but has also helped elevate the global recognition of Uzbekistan’s carpet industry [6].

SAG demonstrates how a company can achieve global success through innovation, strategic changes, and a respect for cultural heritage. Its integrated production processes, advanced technologies, and customer-focused approach solidify its status as a leader in the global carpet market. This blend of tradition and innovation reflects SAG’s commitment to delivering high-quality products and services to customers worldwide.

2. Marketing Mix (4Ps) Analysis of Sag Carpets

Sag Carpets stands out as a major flooring in the carpet business that delivers top-quality products to all types of customers. The company works in a market with strong competitive environment that demands fresh ideas and strong customer connections to succeed. This analysis examines Sag Carpets' marketing mix strategy through the 4Ps framework with product, price, place, and promotion elements with recommended enhancements [7].

a. Product

Sag Carpets presents various carpet options including carpets which is made from wool, synthetic materials, custom-made carpets as well as natural fibers. The wide range of carpets in its assortment allow Sag Carpets to serve multiple customer groups including normal households and businesses as well as industrial facilities. Furthermore, its product customization helps Sag Carpets meet the needs of specialty customers who value luxury or environmental benefits. However, the company faces losing its competitive advantage since new brands launch smart textile products that differ from what Sag Carpets offers. To solve this issue, Sag Carpets needs to test adding integrating technology to its products through its line of smart carpets. Customers would gain from this new line of carpets because they can automatically show customers when their carpet needs cleaning or wears down, helping them avoid costly damage in the future. People who use their smartphones often would love carpets that check to see if they need cleaning and tell them right through their phone. According to research conducted by Smith shows that 60% of consumers are willing to buy products that help to protect our environment which drives product sustainability today [8]. Sag Carpets can grow and stay ahead of the competition by matching its product plans with changing technology and environmental trends.

b. Price

Sag Carpets uses different pricing strategy to match its range of products. Despite selling luxury carpets at premium prices, Sag Carpets caters to buyers on a tight budget comfortable options to choose from. By targeting two market segments, the brand can reach more potential customers. Majority of problems come from other manufacturers who build carpets at lower costs based in Asian countries like China and India. Competitors with cheap product alternatives push Sag Carpets out of market share with consumers who want to spend less. As a solution, Sag Carpets must switch to value-based pricing strategies. By this strategy, the company shows how its products stand out in three areas - they last longer, let users personalize their own designs, and treat the environment better in order to explain why its prices are higher than competitors. For instance, marketers should show customers that investing in durable high-quality carpets that require less replacement delivers big savings over many years. Moreover, Sag Carpets might start charging a monthly fee that gives customers upkeep, cleaning, and upgrade options for their carpets. By offering a service upkeep package Sag Carpets provides premium-quality carpets that makes them more affordable and strengthens customer loyalty. The companies such as IKEA show that similar subscription services work well for their viability in the home goods sector [9].

c. Place

Sag Carpets sells carpets by operating with physical retail stores and dealer outlets as well as online business platforms. By selling through different channels, Sag Carpets can reach huge audience, serving to both locally and internationally. However, especially during the COVID-19 pandemic, growing consumer preference for online shopping drove permanent changes in how people shop today. Despite having a website, Sag Carpets might not have the digital tools to replicate the physical store level of personalization customers want. Physical stores in distant have difficulty serving their customers in less served areas. To improve its distribution strategy, Sag Carpets should introduce a virtual showroom that shows customers how carpets appear in their homes using augmented reality technology. With a mobile application or online platform, customers could preview how different carpets would match their rooms by uploading room pictures. This option makes online buying more enjoyable while making it easier to purchase expensive items online. according to Forbes, after adding AR tools, Home Depot found that online sales rose 37%. What’s more, the company should build up its sales across Amazon and Alibaba websites to reach more buyers in new countries. The company can combine digital technology with traditional resources to offer effective shopping experiences to customers everywhere [10].

d. Promotion

Sag Carpets uses different promotion methods for its marketing mix including both online and offline strategies. The brand uses TV, print, radio ads, social media posts and search engine optimization to spread the word about its products. Sag Carpets spreads its message across a diverse audiences including older homeowners and tech-savvy buyers [11]. However, modern buyers want to see real content that interacts with them instead of typical promotional materials. Through storytelling and community engagement methods Sag Carpets can create strong bonds with people who follow the brand.

Method

The research study used secondary data taken from external internet sources, mainly research studies, online journals, and global marketing and tourism statistics. During the process of work, these sources have been carefully analyzed and concluded in the main parts:

a. service marketing,

b. its importance in developing the industry globally, and how new trends of advertising are being implemented global companies around the world.

Findings and Analysis

1. Marketing Mix Element

a. Product: Diverse product range, including wool, synthetic, and custom carpets. Introduce smart carpets with lot technology for enhanced functionality and sustainability.

b. Price: Mixed pricing strategy targeting premium and budget segments. Adopt value-based pricing and offer subscription services for carpet maintenance and upgrades.

c. Place: Multi-channel approach with retail stores, dealerships, and online platforms. Implement AR-enabled virtual showrooms and expand global reach through partnership with e-commerce giants like Amazon and Alibaba.

d. Promotion: Traditional advertising (TV, print, radio) and digital marketing (SEO, social media). Collaborate with influencers, leverage storytelling, and host virtual workshops to engage with niche audiences and build brand trust.

Through its marketing mix assessment, Sag Carpets shows success but needs to update systems to defend its market position. Sag Carpets will succeed if they create fresh flooring product line while charging based on customer value and use digital sales methods alongside authentic promotional strategies. By following these methods, Sag Carpets matches modern trends and expectations to ensure to continue their preferred option for flooring solutions.

2. External Factors Influencing SAG Carpet Manufacturing Company Economic Factors

Customer enthusiasm in the CIS countries drives SAG because people there appreciate their durable and beautiful carpets. As Uzbekistan’s middle class grows and more people move to urban areas, they're buying more high-quality home furnishings. The company sells its products to 15 nations while taking advantage of Uzbekistan's favorable trade policies and strategic business position between regional and worldwide trade markets. The country's economic reforms helped SAG grow its non-oil exports by 30% during 2022 [12]. The increasing exports from Uzbekistan established an ideal market for SAG to succeed. Uzbekistan's work to control their currency has helped SAG keep costs under control and set prices that stay competitive [13].

3. Technological Factors

SAG produces high-quality products by using state-of-the-art machines imported from Germany Belgium and Switzerland. SAG's unique "SAG Method" tool helps the company run manufacturing more reliably, consistently, and quickly. SAG installed the SAP company resource planning system in 2017, enhanced their business processes, and gained worldwide recognition. Our manufacturing processes run better because we use artificial intelligence technology. Through its new technologies SAG proves itself a trendsetter among carpet manufacturers.

4. Social and Cultural Factors

Uzbekistan and the CIS countries treat carpets as powerful symbols, linking them to time-honored past and expert artwork. The company uses Uzbekistan's culture of caring about carpets in two ways: they mix classic patterns with modern designs to match different customer tastes.

SAG’s retail strategy includes three store formats:

SAG XP: Their premium stores have two special features: a carpet history exhibit area and unique shopping surroundings.

SAG XL: Big stores that offer many choices for any kind of customer.

SAG XS: Smaller stores near you for fast buying options.

Our different store designs serve customers around the nation effectively.

5. Environmental and Sustainability Factors

The company leads in sustainability by meeting worldwide environmental standards in its factory production. The way SAG makes carpets, from starting with raw fibers to packaging the finished product, lets them check quality more carefully, uses resources better, and completes steps faster. These efforts help SAG stay ahead because they meet consumer demand for green products and prove that SAG is a top maker of sustainable manufacturing.

6. Competitive Landscape

Though SAG dominates CIS carpet industry leadership it competes with domestic producers alongside international brands from Turkey Iran and China. Through advanced technology and eco-friendly practices combined with focused retail programs SAG distinguishes itself from competitors. Through continuous product enhancement SAG protects its market position as the global carpet industry leader.

SAG Company, a leading provider of innovative business solutions, has established a robust contract management system that caters to both its business-to-business (B2B) and business-to-consumer (B2C) clientele [10]. The company's approach to contract negotiation, execution, and monitoring varies significantly between these two distinct market segments, reflecting the unique needs and dynamics of each.

In the B2B realm, SAG Company's contracts are characterized by a heightened emphasis on technical specifications, cost analysis, and formal procurement procedures [14].

a. Strength (Internal, Positive)

Comprehensive production supervision: SAG monitors every stage of production, from yarn production to packaging, which guarantees high quality and reliability of products. Modern equipment: The production uses modern equipment supplied from Germany, Belgium and Switzerland, which makes it possible to create carpets of the highest quality. Product Range: The company serves a wide range of customers by offering a wide range of carpets, including traditional, modern, children's and designer carpets. International Trade relations: SAG supplies its products to various CIS countries and beyond, including Russia, Kazakhstan, Azerbaijan, Armenia, Turkmenistan, Georgia, Afghanistan, Ukraine, China and the United States.

b. Weaknesses (Internal, Negative)

1) Limited availability in digital format: although SAG has an online store. presence can increase brand awareness and increase sales through digital platforms.

2) Export dependence: A significant portion of SAG's revenue comes from exports, making it susceptible to changes in international trade and economic conditions.

3) Producing high-quality carpets can be a resource-intensive process. If SAG Carpets does not have efficient production processes, it may face higher cost than its competitors, which will affect its profitability [15].

Results and Discussion

The strategic application of the STP (Segmentation, Targeting, Positioning) framework, which allows SAG to satisfy the various needs of its clients, is another factor contributing to the company's success [16]. The business divides its clientele into groups according to behavior, psychographics, geography, and demographics. Geographically, SAG caters to both local clients in Uzbekistan and foreign purchasers in areas such as Europe and Central Asia. Its premium handmade carpets attract high-end consumers who appreciate exclusivity and craftsmanship, while its machine-made carpets are marketed to middle-class households looking for reasonably priced yet long-lasting solutions. Psychologically, SAG appeals to both traditional buyers who value the legacy ingrained in traditional Uzbek designs and eco-conscious consumers with its sustainable carpet line. In terms of behavior, the business offers to both infrequent individual customers seeking ornamental or gift-giving items and regular commercial customers, such as hotels and businesses. SAG has been able to reach a wider range of customers by using accurate targeting. For instance, its reasonably priced machine-made carpets rule the local market, but its high-end handmade carpets are extensively promoted to wealthy foreign customers who respect authenticity and history [17]. SAG emphasizes its fusion of innovation and heritage in its positioning. The corporation appeals to local feelings in home markets by highlighting affordability and cultural pride. It presents itself as a high-end brand with a rich artistic legacy and superb craftsmanship in foreign markets. SAG uses a sustainability-driven strategy for its eco-friendly carpets, appealing to customers who are concerned about the environment and are looking for morally sound products. By successfully putting the STP framework into practice, SAG ensures that each consumer segment finds resonance with its products, strengthening its brand appeal and preserving its competitive advantage. In addition to enhancing SAG's market position, these calculated actions open the door for long-term expansion in a changing sector.

Conclusion

SAG Carpet Company has established itself as a dominant player in the carpet manufacturing industry by leveraging its commitment to quality, innovation, and cultural heritage. SAG has successfully positioned itself in domestic and international markets through a well-structured marketing mix and strategic use of the BCG matrix. The company’s transition from B2B to B2C has enhanced customer engagement and provided valuable insights into customer preferences. However, to maintain its competitive edge, SAG must embrace emerging trends such as smart textiles, eco-friendly materials, and augmented reality in retail. Expanding its digital presence and adopting customer-centric strategies will be key to sustaining long-term success in an increasingly competitive global market.

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