Business Methods and Organization

8/13/2019 Business Methods and Organization

1/29

Leather Art

1


2/29

Developing the new products

named Leather Goods in the

market

Leather Art Company

Course name: Business Methods and rgani!ationCourse Code: MBA" #$%

&repared 'or

Mr(mar )aruk *Assistant &ro'essor+

)aculty o' Business and ,ocial ,cienceAhsanullah -niversity o' ,cience . /echnology

&repared 0y$( ,atish Chakma %( Md( Didarul 1slam 1D( 23(2%(4%(254 *6ew+ 1D( 23(2$(4$(2$2

1D(23(2%(4$(2%# *ld+ MBA MBA

5( Md( ,hakhawat 7ossain 8( ,hakhwat 7ossain 1D( 23(2%(4%(22$ 1D($2(2%(4%(22%

MBA MBA

4( /aslima Amin #( ,uman 9umar 9undu 1D( $2(2$(4$(2$ 1D($2(2%(4$(2;2 MBA MBA

Date o' su0mission: August %< %2$$

2


3/29

Ahsanullah -niversity o' ,cience . /echnology

L=//=> ) />A6,M1//AL

Date: August 27, 2011

ToMr( mar )aruk *Assistant &ro'essor+,

Faculty of Business and Social Science,

Ahsanullah University of Science Technology,Dha!a, Bangladesh"

,u0?ect: ,u0mission o' the /erm &aper

#onora$le sir,

%t is our great &leasure to su$'it A Ter' (a&er on Developing the new productsnamed @Leather Goods 0y Leather Art Company: A ,tudy on the Leather Art

Company in Bangladeshthat you have assigned to us for the &artial re)uire'ent of ouracade'ic &ur&oses" *e tried to &ut our $est effort to &resent this Ter' (a&er effectively

according to 'aintain the rules" *e 'ade sincere efforts to study related 'aterials,docu'ents, o$serve and e+a'ine relevant ite's for &re&aring this Ter' (a&er"

*ithin the ti'e li'it, e have to 'a!e this Ter' (a&er as co'&rehensive as &ossi$le" But

there 'ay $e so'e 'ista!es due to various li'itations" For this reason, e ho&e you !indlyconsider any 'ista!e on our &art in &re&aring this Ter' (a&er" And should you need any

further clarification regarding our Ter' (a&er, &lease call on us"

Sincerely yours,

$( ,atish Chakma %( Md( Didarul 1slam 1D( 23(2%(4%(254 *6ew+ 1D( 23(2$(4$(2$2

1D(23(2%(4$(2%# *ld+ MBA MBA

5( Md( ,hakhawat 7ossain 8( ,hakhwat 7ossain

1D( 23(2%(4%(22$ 1D($2(2%(4%(22% MBA MBA

4( /aslima Amin #( ,uman 9umar 9undu 1D( $2(2$(4$(2$ 1D($2(2%(4$(2;2

MBA MBA

-


4/29

AC96L=DG=M=6/

Any assign'ent./ase Study.e&ort as this 'ust oe credit to a 'ultitude of &eo&le" At

the $eginning, e should ac!noledge the contri$utions of our course instructor, hose

instruction has $eco'e the &art of our thin!ing &rocess" *e e+&ress our sincere gratitude

and than!s to our course instructor mar )aruk, Assistant (rofessor, Faculty of Business

and Social Science, Ahsanullah University of Science Technology, for his $rilliant and

e+cellence guidance and assistance to &re&are this Ter' (a&er"

*e are grateful to (%/AD Bangladesh td, Dha!a, Bangladesh for giving us so'e

essential infor'ation" *e ould li!e to e+&ress our gratefulness to under hose !ind

su&ervision e got our re)uired 'aterial"

Finally, e ould li!e to than!s our $eloved friends, senior $rothers and sisters ho

hel&ed us in every stage of the Ter' (a&er $y &roviding their valua$le suggestions and

served as the revieer and critics in res&ect of &re&aring this Ter' (a&er"

Definitely all &raise to Allah" So, at last not the least, e ould li!e to e+&ress our

gratitude to Almighty Allah for !ee&ing us 'entally and &hysically sound to co'&lete this

Ter' (a&er"


5/29

==C-/1= ,-MMA>

This re&ort.ter' &a&er is $asically &re&ared for the &artial re)uire'ent of our acade'ic&ur&ose" This re&ort e'&irically focuses on the de&th analysis of the Integrated Marketing

Communication planning for (roducts on the eather Art /o'&any in our native countryBangladesh" *e have 'ade this ter' &a&er after critically e+a'ining and thoroughly

researching over it" %t consists of e+a'ining 'ar!et research, auditing situation analysis andcarefully scrutini3ing the leather &roducts of eather Art /o'&any in the 'ar!et" *e have

carefully analy3ed thedifferent varia$les and relevant strategy for seg'enting the $everage

'ar!et of eather" This re&ort ill give a clear idea a$out their target 'ar!eting &lanningand co''unication strategy"

eather Art /o'&any &rovides eather goods as solutions to i'&rove afforda$ility, co'fortand stylish" This 'ar!eting &lan de'onstrates the strategies e'&loyed to convert sales and

create steady strea's of revenue" 4ur co'&any creates eather &roducts that give us aco'&etitive advantage" eather Art /o'&any &rovides $usinesses ith &roduction of leather

&roduct that are scala$le and environ'entally friendly"*e ill fund our co'&any $y selling our &ro&rietary &roducts that 'anages &roduction

volu'e, allocation of resources and ithin the first three years of $usiness, the co'&anye+&ects to $eco'e &rofita$le and e+&and

After researching on this co'&any in Bangladesh e have found that,in levels of 'ar!eting

they follo seg'ent 'ar!eting and in seg'entation they follo De'ogra&hic andBehavioral Seg'entation" As they have different ty&es of &roduct they follo differentiated

'ar!eting ith different 'ar!eting 'i+" %n target 'ar!et selection they are folloing full'ar!et coverage and targeting 'ulti&le seg'ents" eather Art /o'&any follos5 ays of

&ositioning 6(roduct, (rice, Distri$ution, (ro'otion and /o'&etitive Strategy" Theireffective ays of &ositioning hel& the' 'uch to increase their &rofit"

5


6/29

/ABL= ) C6/=6/,

,l Content &age no

8


7/29

C7A&/=>"1

1" %ntroduction

A'erican 9ar!eting Association 6A9A, the organi3ation that re&resent 'ar!eting&rofessional in the United States and /anada, defined 'ar!eting as the process of planning

and executing the conception, pricing, promotion and distribution of ideas, goods andservices to creat exchangees that satsfy individual and organizational objectives This

'ar!eting defination focused on ;+change< as a central conce&t" 9ar!eting faliciates thee+change &rocess and develo&'ent of relationshi& $y carefully e+a'inning the needs and

ants of consu'erd, develo&ing a &roduct or service that satisfy these needs, offering it at

a certain &rice, 'a!ing it availa$le through a&articular &lace or channel of distri$ution anddevelo&ing a &rogra' of &ro'otion or co''unication to create aareness and interest"These are denoted as 9ar!eting (s = (roduct, (rice, (lace and (ro'otion" %t also called as

9ar!eting 9i+" %ntegrated 'ar!eting /o''unicatio$ 6%9/ is a conce&t of co''unication&lanning that recogni3e added value of a co'&rehensive &lan" %9/ is a strategic $usiness

&rocess used to &lan, develo&, e+ecute and evaluate coordinated, 'easura$le, &ersuasive$rand co''unication &rogra' over ti'e ith consu'ers, &ros&ects, e'&loyees, associates

and other targeted relevant e+ternal and internal audiences" The goal is to generate $othshort ter' financial returns and $uild long>ter' $rand and shareholder value"

eather art co'&any launched for &rofit earning" /o'&any?s strategy or 'ar!eting

&lanning follos 21stcentury?s concern" ;arning &rofit is not only target for this co'&any"

#olistic 'ar!eting conce&t is a&&lied for this co'&any" This conce&t re)uires intergration of'ar!eting 'i+ and social res&onsi$ility" To achieve the goal, co'&any carefully follointegrated 'ar!eting co''unication"

7


8/29

2" 4$@ective of the Study

Behind the every or! there 'ust have so'e &ur&oses and goals as ell" So, in our

research, there are so'e 4$@ectives" They are 'entioned $elo:

%($ &rimary 0?ective o' the ,tudy

The Primary Objectiveof our re&ort is the de&th analysis of the 'ar!eting &lanning and

i'&lication of %9/ of eather Art /o'&any in Bangladesh"

%(% ,econdary 0?ective o' the ,tudy

The Secondary Objectives are =

1( To find out the varia$les and relevant strategy for seg'enting the 'ar!et"

11( To find out their target 'ar!et selection strategy"

111( To find out the effective ays of their &ositioning in the 'ar!et"

%(5 Methodology

The %9/ &lan as largely involved in accu'ulation of infor'ation that co'es &artly fro' the

(ri'ary and &artly fro' the Secondary sources"

%(5($ &rimary ,ources

- (ri'ary sources ere those individuals around us ho fa'iliar ith eather 'ar!et

%(5(% ,econdary ,ources

- Secondary infor'ation as collected fro' the e$ site and the nes &a&er"

5(2 Limitations o' the ,tudy

*e have faced different ty&es of &ro$le's at the ti'e of conducting this survey" These

&ro$le's.li'itations are 'entioned $elo:

o availa$le data &articularly this sector"

overn'ent &olicies

ot enough infor'ation a$out foreign $uyers"

o enough infor'ation of local $uyers

C


9/29

C7A&/=>"11

"0 9ar!eting &lanning of eather Art /o'&any

8($ Current market situation:

*hen e'&loying a target 'ar!eting strategy, the 'ar!eter identified the s&ecific needs ofuniversity students 6Seg'ents selects one or 'ore grou&s of these seg'ents as a target

and develo&s 'ar!eting &rogra's directed to each " This a&&roach has for' increaseda&&lica$ility in 'ar!eting for a nu'$er reasons, including changes in the 'ar!et 6/onsu'er

are $eco'ing 'uch 'ore diverse in their needs, attitude and life styles"Target 'ar!et identification isolated consu'ers ith si'ilar lifestyles, needs, and li!e and

increases our !noledge of their s&ecific re)uire'ents" The 'ore 'ar!eters can esta$lishthis co''on ground ith consu'er, the 'ore effective they ill $e addressing these

re)uire'ents in their co''unications &rogra's and infor'ing and or &ersuading &otential"

)igure 8: Market 1denti'ication

1.2 Market description:

9ar!eting strategy is $ased on a situation analysis> a detailed assess'ent of current 'ar!et

condition facing the /o'&any and its &roducts line or its individual Brand" Leather Art

identify, the target custo'er and understand the 'ar!et and analysis various o&&ortunitiesith 'ar!et seg'entation"

8(% &roduct review:

4ur &roduct offers the folloing standard features:

- ocal and e+&ort oriented eather &roducts"

- uality eather for orld standard $y &ro'inent $rand i'age"

E

Sales Local madeleatherproducts

12%

China made PVC

bags and purses

49%

Apex Leather goods

21%

Pierre Cardin

18%


10/29

- Distinctive i'age of 9 &roducts in local and international 'ar!et"

- ;nviron'ental friendly"

- Attractive designs colors

/a0le: $($

/arget segment Customer need Corresponding 'eature

and 0ene'its

#ouse hold6/onsu'er 'ar!et

Basic re)uire'ent of $agsor &urse

(erfect )uality andlongevity ith volu'e

&roductivity

4ccasional

6/onsu'er 'ar!et

Traditional culture Si'&le and co'fort

/asual6Business 'ar!et

/o'fort create status #igh class $rand i'age

Unifor'

6/onsu'er Business

'ar!et

%nstitutional or /or&orate

user

/o'fort, /olorful and

design

Lists o' Leather products:

$( Corporate 0ag 'or mens . ladies:

%( Ladies 0agEpurses:

5( allets and card holder:

8( Belt E 9ey holder

10


11/29

8(5 pportunity Analysis:A careful analysis if the 'ar!et &lace should use to alternative 'ar!et o&&ortunities for

e+isting &roduct lines in current and ne 'ar!et" 9ar!et o&&ortunities are areas herethere are favora$le de'and trends, here Leather Art< $elieves custo'er needs and

o&&ortunity" For ;+a'&le: %n do'estic 'ar!et roles of china 'ade (/ $ags ladies &urseca&turing the 'ar!et $ut the end custo'er ere not ha&&y to use it or its )uality" So e

can target that !ind of custo'er to achieve their need and ants and fulfill the custo'ersatisfaction(

8(8 Competitive Analysis:%n develo&ing the fir' develo&ing strategies and &lace for its &roducts and services the

'anager 'ist carefully analy3e the co'&etition to $e faced in the 'ar!et&lace" This 'ay

range fro' direct $rand co'&etition 6i!e (ierre /ardin, A&e+ leather goods, ocal 'adelo )uality $ags and china (/ $ag"

An i'&ortant as&ect of 'ar!eting strategy develo&'ent is the search for a co'&etitive

advantage, so'ething s&ecial a fir' does or hat than gives it an edge over co'&etitorsays to achieve a co'&etitive advantage include having )uality &roducts that co''and a&re'iu' &rice, &roviding su&erior custo'er service, having loest &roduction costs and

loer &rice" Leather Art offering co'&etitive &rice and high )uality leather &roducts ithsu&erior custo'er value"

8(4 Distri0ution review:

Usually etailer direct i'&ort leather goods fro' a$road" ocal 'anufacturers sale goods $y

their on outlet"

8(# ision

eather Art as&ires to $eco'e one of the largest leather goods 'anufacturing units ithinthe su$continent" The co'&any?s short ter' goal is to diversify its su&&ly into ne 'ar!ets"

%ts long ter' goal is to $eco'e a recogni3ed na'e orld ide as a 'anufacturer of high)uality leather goods"

eather Art has, had and ill alays strive to $e true to it 'otto hich is *e are never on

ti'eG rather e are alays ahead of ti'e


12/29

8( 0?ectives

&rimary o0?ective:

(ri'ary o$@ect of eather Art is to ca&ture 12H of 'ar!et share" %n order to achieve thiso$@ective, target &roductivity set 1"5 'illion of leather goods &roduction"

,econdary o0?ectives:

- 4$@ective is to aare &eo&le regarding leather &roducts"

- 4$@ective is to &rovide !noledge a$out leather &roducts"

- 4$@ective is to set li!ing of core $enefits of &roduct"

- 4$@ective is to set &reference of $enefits of &roducts

- 4$@ective is to convince &eo&le for $uying &roducts

- 4$@ective is to force target custo'er to &urchase

0?ectives and issues:

*e have set aggressive $ut achieva$le o$@ectives for the ne+t financial year of 'ar!et

entry"

$styear:During the initial year on the 'ar!et, e are ai'ing sales of volu'e 1"50 'illion

of &roductivity 6Target ca&turing 'ar!et share 12H

1ssues:

4ne 'a@or issue is our a$ility to esta$lish a ell regarded $rand na'e eather Art< lin! to a'eaningful &ositioning" *e ill have to invest heavily in 'ar!eting to create a 'e'ora$le

and distinctive $rand i'age &ro@ecting innovation, )uality and value" *e also 'ust 'easureaareness and res&onse so e can ad@ust our 'ar!eting efforts in necessary"

4(2 ,/ Analysis:

4($ ,trength:

1" State &artici&ation:2" De'and of local 'aterials:

-" Distinctive i'age of leather as local and e+&ort oriented:" /o'&etitive &rice and add feature facilities"

5" Availa$ility of ra

8" Free Trade Agree'ent 6FTA ith ;uro&e7" (ro+i'ity to ;uro&e

12


13/29


14/29

1" %ncrease co'&etition"2" Donard &ressure on &ricing"

-" 4&erational delay $y custo's and $an!ing activities"" Unillingness to change

5" ;sta$lished nor's in glo$al 'ar!ets not acce&ted8" Finished leather

7" Sales techni)uesC" ac! of ca&ital

E" egative e+change rates10"Artificial $arriers to leather trade

#(2 /arget Market

After evaluating the o&&ortunities &resented $y various 'ar!et seg'ents, including a details

co'&etitive analysis eather Art /o'&any select only one as a target 'ar!et age $eteen1C>5 years" This target 'ar!et $eco'es the focus of the eather Art 'ar!eting effort and

goals and o$@ectives are set according to here the co'&any ants acco'&lish in this

'ar!et" ;+a'&le eather Art target 'ar!et is o'en s&ecially"

The target 'ar!et &rocess =

CToday the orld &o&ulation is over 8"5 $illion and is e+&ected to cross the E"0 $illion

threshold $y 2050" %n glo$al ter's &o&ulation groth ill $e highest in the %ndian su$continent and Asia 'ainly /hina" The &o&ulation in ;uro&e is &redicted to decline" Africa and

atin A'erica ill increase" orth A'erica ill sho a 'oderate increase &o&ulation

1

Identifyingmarket with

unfulfilled

needs

Determining MarketSegmentation

Positioning throughmarket strategies

Selecting a marketto target


15/29

The e+&anding 'ar!ets for leather &roducts $y &otential custo'ers in ter's of si3e rather

than &er ca&ita consu'&tionare:>

- Asia- Africa

- %ndia

- /hina"

Those shoing only 'odest groth are:>

- ;uro&e

- atin A'erica

- orth A'erica

The average orld annual groth rate for the ne+t 8 years is esti'ated at 1"125H &erannu'" During the ne+t 15 years the &o&ulation over 55 is &redicted to increase $y -5"1H

in ;uro&e" For 'anufacturers of leather &roducts and shoe'a!ers in &articular, the shift inthe age de'ogra&hics fro' a relatively young &o&ulation to an ageing one is significant"

This ill entail ne 'ar!eting &lans, techni)ues and &roducts to a&&eal to this &articular

'ar!et seg'ent, $ased around co'fort, value for 'oney and conservative styling"

#($ Market de'inition and segmentation

%t is not &ossi$le to develo& 'ar!eting strategies for every consu'er rather the 'ar!eter

atte'&ts to identify $road classes of $uyers ho have sa'e needs and ill res&ond si'ilarlyto 'ar!eting actions" As noted $y ;ric " Ber!oit+ o@er A" Jerin and *illia' udelius

'ar!eted seg'entation is dividing u& a 'ar!et into direct grou&s that1" #ave co''on needs and

2" *ill res&ond si'ilarly to a 'ar!eting action"

The seg'entation &rocess involves fine distinct ste&s:

1" Finding ays to grou& consu'er according to their need"

2" Finding ay to grou& the 'ar!eting action usually the leather &roducts offered

avoida$le to the organi3ation"

-" Develo&ing a 'ar!et leather &roducts grid to relate the 'ar!et seg'ents to the

fir'?s &roducts and actions"

" Selecting the target seg'ents toard hich the fir' directs its 'ar!eting actions"

5" Ta!ing 'ar!eting actions to reach target seg'ents"

#($($ Bases 'or ,egmentation:

Seg'entation is the first crucial ste& in 'ar!eting" Satisfying &eo&le?s needs and 'a!ing a

&rofit along the ay is the &ur&ose of 'ar!eting" There are various ty&es of custo'ers ith

15


16/29

different needs and $uying $ehavior" Therefore satisfying the' 'ay re)uire different

a&&roaches" %dentifying needs and recogni3ing differences $eteen grou&s of custo'ers is

at the heart of 'ar!eting" /o'&anies are recogni3ing that they cannot serve all $uyers in

the 'ar!et&lace" ather than co'&eting in the entire 'ar!et 6'ass 'ar!eting co'&anies

identify &arts of the 'ar!et that they can serve ell and &rofita$ly 6'ar!et seg'entation

and targeting"

#($($($ Geographic ,egmentation:

%n the geogra&hic seg'entation a&&roach 'ar!ets are divided into different geogra&hic

units" These 'ay include nations, status, countries or even neigh$or" Leather Artfollosthe status of fashion"

#($($(% Demographic ,egmentation:

Dividing the 'ar!et such as age, se+, fa'ily si3e, education, inco'e and social class is

called de'ogra&hic seg'entation" Leather Artfollos the 1C to 25 ages and $oth of se+ith higher education students fro' 'iddle class of society"

#($($(5 &sychographic ,egmentation:

Dividing the 'ar!et on the $asis of &ersonality or lifestyles is referring to as &sychogra&hic

seg'entation" Leather Artfollos student lifestyles"

#($($(8 Behavioral ,egmentation:

Dividing consu'ers in to grou&s according to their usage, loyalties or $uying res&onds to

leather &roducts is called $ehavioral seg'ents"

a( ccasions Fdividing the 'ar!et into grou&s according to occasions hen $uyers get the

idea to $uy, actually 'a!e their &urchase, or use the &urchased ite'"

0 ( Bene'its Fdividing the 'ar!et into grou&s according to the different $enefits thatconsu'ers see! fro' the &roduct"

#(% /arget market segment strategy

The /o'&any strategically analy3es their 'ar!et seg'ents to select the strategy of those

'ar!et seg'ents" They critically analy3e their custo'ers, co'&etitors, &ositioning strategy,

and financial and 'ar!et attractiveness"

18


17/29

#(%($ Customer Analysis

/usto'er satisfaction is considered as $eing the 'ost i'&ortant and vital things in

&rogress" Their o$@ective is to find out the descri&tive characteristics that are highly

correlated to the varia$les used to for' the seg'ents" They find out as 'uch infor'ation as

&ossi$le a$out their &ros&ects in each seg'ent" An essential &art of their custo'er analysis

is deter'ining ho ell the $uyers in the seg'ent are satisfied" The eather Art /o'&any

focuses on:

/usto'er Data$ase"

etting ne &otential custo'ers, side $y side retaining old ones"

#(%(% Competitor Analysis

The eather Art /o'&any alays focuses on the analysis of their !ey co'&etitors currently

active in the 'ar!et in hich the seg'ent is located &lus any &otential seg'ent entrants"

To select the strategy of their 'ar!et seg'ents, the /o'&any analy3es =

The 'ar!et &osition of their rivalsG

The strengths ea!nesses of their co'&eting $randsG

The total custo'er si3e, 'anage'ent e+&eriences ca&a$ilities of their co'&etitorsG

The 'ar!et &ositioning strategies, financial technical strengths of their rivalsG

etc"

Fro' our research or! e have found that the 'a@or co'&etition faced $y eather Art in

our country is /hinese $ased co'&anies hose are su&&lying leather goods and there are

lots of fa'ous $rands doing $usiness for long long ti'e

#(%(5 &ositioning Analysis

The eather Art /o'&any conducts &ositioning analysis that co'$ines their &roduct, &ricing,

&ro'otion and distri$ution strategies for develo&ing favora$le &osition in the 'ind of their

custo'ers" They are trying to i'&le'ent an effective &osition strategy in the 'ar!et

through 'eeting the needs and re)uire'ents of their targeted $uyers at a cost that yields a

&rofita$le 'argin for the'"

17


18/29

#(%(8 ,egment Attractiveness Analysis

There are three factors that a fir' can use in evaluating different 'ar!et seg'ents" These

are si3e and groth of the seg'ent, seg'ent structural attractiveness, and co'&any

o$@ectives and resources" Seg'ents that should $e chosen are those ith the right si3e and

groth characteristics" #oever, the largest and fastest groing seg'ents are not alays

the 'ost attractive" The structural factors that affect attractiveness of a &otential seg'ent

'ust also $e e+a'ined"

The eather Art /o'&any in Bangladesh evaluates $oth the financial and 'ar!et

attractiveness of their each seg'ent that included the s&ecific esti'ation of costs,revenues, and seg'ent &rofit contri$ution over the &lanning hori3on" They 'easure their

'ar!et attractiveness $y 'ar!et groth rate &ro@ections" They conduct the co'&etitive

&osition evaluation and the financial forecasts to co'&are each of their seg'ents"

#(5 /arget market

After evaluating the different seg'ents, the co'&any decides hich and ho 'any

seg'ents to target" A Target market is a set of $uyers sharing co''on needs or

characteristics that the co'&any decides to serve" Targeting 'eans to selecting attractive

seg'ents to enter" Target strategy $asically falls into to categories =

Targeting hen seg'ents are clearly defined, and

Targeting $ased on &roduct differentiation"

1C


19/29

#(5($ 6eed and reuirements 'or target market

The folloing are different levels of target 'ar!eting:

1" -ndi''erentiated Marketing or Mass Marketing F ignore different 'ar!et

seg'ents and target the hole 'ar!et ith one offer"

2" Di''erentiated Marketing or ,egmented Marketing F a fir' decides to enter

different 'ar!et seg'ents and designs se&arate offers for each"

-" Concentrated Marketing or 6iche MarketingF s'aller than seg'ents and 'ay

attract only one or fe co'&etitors

" Micromarketing F tailoring &roducts and 'ar!eting &rogra's to suit the tastes ofs&ecific individuals and locations"

#(5(% Distri0ution channel

eather Art /o'&any initially starts $usiness ith on retail outlet in local 'ar!et"/onsidering groth of 'ar!et, co'&any ill use distri$utor under s&ecific condition" For

international $usiness, co'&any 'ay franchise it?s $rand and distri$ute goods to custo'erthrough distri$utor channel"

)ig: Distri0ution Channel

#(5(5 Competitive 'orce

/hinese (/ &roducts ith lo &rice and lo )uality ca&ture leather 'ar!ets in Bangladeshas ell as orld 'ar!et" There are so'e renoned $rand doing ell ith )uality &roduct

$ut they are very e+&ensive" eather Art co'&any?s first co'&etitor is /hinese &roducthich already ca&tured 'a+i'u' 'ar!et share"

#(5(8 Communications

Advertising, direct 'ar!eting, tele 'ar!eting, (u$licity, &ro'otional activities define it?sco''unication strategy"

1E

LA Retail outlet

Customer Distributor

ranchise


20/29

#(5(4 9ey to success

Jey success factor of eather Art co'&any is &roduct differentiation, )uality and lo &rice"

(2 Marketing plan strategy

($ Marketing strategy:

eather?s 'ar!eting strategy is $ased on a &ositioning of &roduct differentiation" 4ur

&ri'ary consu'er target is middleand upper income&rofessionals ho need for use of

leather?s good as ell as &ersonality i'age" This seg'ent can $e descri$e de'ogra&hically$y age 61C>5 and education status"

4ur &ri'ary $usiness target is 'iddle and u&&er &rofessional hose can achieve eather Arteasily"

;ach of the four 'ar!eting 'i+ strategies coveys eather Art?s differentiation to the target

'ar!et seg'ent identified a$ove"

(% &ositioning strategy:

Using &roduct differentiation, e are &ositioning eather Art as the 'ost fashiona$le andco'forta$le for use"

9ar!et research ill identify infor'ation a$out co'&etitors hich ena$ling to define

&ositioning strategies" Deter'ining &ositioning strategies include &rocess of =

- %dentifying co'&etitors

- Assessing consu'er &erce&tion of co'&etitors

- Deter'ining co'&etitors &osition

- Analy3ing the consu'er &reference

- 9a!ing &ositioning decision

- 9aintaining the &ositioning

/onsidering a$ove &rocess of identifying &ositioning of co'&etitors, eather Art can select

&ositioning $y

- (ositioning $y (rice

- (ositioning $y co'&etition

(5 &roduct strategy:

20


21/29

(roduct revie descri$es the !ey feature of eather &roducts that it includes attractivedesign, color and style hich re&resent distinctive i'age"

(4 &ricing strategy:

*e ill e+&ect to loer the &rice of this first seg'ent hen e e+&and the &roduct line $y

launching ne &roduct to $e are 'ini'u' &rice" These &rices ill $e reflected a strategy of61 Attracting desira$le channel &atterns and 62 tal!ing 'ar!et share fro' other $rands"

(# Distri0ution strategy:

4ne channel strategy us to use selective distri$ution to have eather Art sold through ell

!non stores" During the 1styear eather Art ill add channel &artners until e have 'a@or

coverage in international 'ar!et as ell as local 'ar!et and the &roduct is included in the'a@or 'aga3ines and e$sites" %n su&&ort of our channel &artners eather Art ill &rovide

full color &hoto and dis&lay featuring the &roducts" eather Art ill also arrange s&ecial

trade ter's for retailers that &lace volu'e orders"

( Marketing communication strategy: Developing 1MC planning

By integrating all 'essages in all 'edia, eather Art ill reinforce the &roduct na'e and

the 'ain &oints of &roduct differentiation, es&ecially our e+clusive design and style feature"esearch a$out 'edia consu'&tion &atterns ill hel& our advertising agency choose

a&&ro&riate 'edia and ti'ing to reach &ros&ect $efore and during &roduct introduction"Thereafter advertising ill a&&ear on a &ulsing $asis to 'aintain &roduct aareness and

co''unicate various differentiation 'essage" The agency ill also co>ordinate &u$licrelations efforts to $uild the eather Art and su&&ort the differentiation 'essage" To attract

'ar!et attention and encourage &urchasing, e ill offer as a li'ited ti'e &re'iu' ithhandso'e &ac!age, to attract retain and 'otivate channel &artners for a &ush strategy, e

ill use trade sell &ro'otions and &ersonal selling to channel &artners" Until the 'ar!et has$een esta$lished, our co''unication ill encourage &urchases through channel &artners

rather than fro' our advertising"

(; Analy!e communication process:

Analy3e co''unication refers receiver?s res&onse and feed$ac!" eather Art co'&anyesta$lish data$ase 'anage'ent here &ut all custo'er infor'ation a$out $uy and

&urchase decision 'atter" A holds i'&ortant 'easure a$out source of infor'ation,

'essage, channel factors and esta$lished co''unication o$@ective and goal in order to'onitor, evaluate and control %9/ &rogra'"

(3 Budget determination:

eather Art /o'&any calculates and set $udget for %9/ &rogra' in their financial'anage'ent decision" %nitial $udget has set CH fro' target &rofit and $udget

deter'ination 'ay vary or change during account &eriod if decision 'ay ta!e"

($2 Developing 1MC program:

21


22/29

Develo&ing %9/ &rogra' is generally the 'ost involved and detailed ste& of the &ro'otional&lanning &rocess" ;ach &ro'otional 'i+ has certain advantage and li'itations" At this stage

decision 'ust $e 'a!e regarding the role and i'&ortance of each ele'ents and theircoordination ith another"

For e+a'&le, The advertising &rogra' ill have its on set of o$@ectives, usually involving

the co''unication of so'e 'essage or a&&eal to a target audience" A $udget ill $edeter'ined, &roviding the advertising 'anager and the agency ith so'e idea of ho 'uch

'oney is availa$le for develo&ing the ad ca'&aign and &urchasing 'edia to disse'inate thead 'essage" To i'&ortant as&ects of the advertising &rogra' are develo&'ent of the

'essage and the 'edia strategy"

A si'ilar &rocess ta!es &lace for the other ele'ents of the %9/ &rogra' as o$@ectives are

set, an overall strategy is develo&ed, 'essage and 'edia strategy are deter'ined and

ste&s are ta!en to i'&le'ent the'"

($2($ Advertising:

Strategy has $een set for co''unication of 'essage to 'ar!et" Advertising is the 'osteffective ay to aare 'ass &eo&le a$out &roduct and service"

Advertising 'ay classified as =

- Advertising to /onsu'er 'ar!et

- Advertising to Business and &rofessional 'ar!et

Advertising strategy has $een set ith &articular o$@ective and goal" Authori3ed &ersonnel

has $een engaged to 'onitor, u&date and for'ulate advertising strategy"

($2(% Direct Marketing:

eather Art co'&any esta$lish it?s direct 'ar!eting through co'&any and retail outlet here

co'&any directly co''unicate ith custo'er"

($2(5 1nteractive E 1nternet marketing

/o'&any launch e$site "leatherart"co'here custo'er can directly co''unicateith co'&any regarding &roduct and service or any $uy decision"

($2(8 ,ales promotion

eather Art /o'&any offers sa'&ling, cou&oning, arranty for custo'ers" /o'&any offers

$usiness and &rofessional so'e &ro'otional gift of card holder, allets, !ey holder, official$ag etc"

($2(4 &u0lic relationE &u0licity

For &u$lic relation or &u$licity eather Art /o'&any arrange &rogra' in order to introduce

its &roduct to 'ass &o&ulation"

22
http://www.leatherart.com/http://www.leatherart.com/


23/29

($2(# &ersonal selling:

;ach co'&any atte'&t &ersonal selling for )uic! sale and feed$ac!" eather Art /o'&anyalso atte'&t &ersonal selling to its iche target 'ar!et here custo'er are very s&ecial"

;(2 Marketing research:

Using research e are identifying the s&ecific feature and $enefits that our target 'ar!et

seg'ents value" Feed $ac! fro' 'ar!et tests, surveys and focus grou&s ill hel& usdevelo& eather 'ar!et" *e are also 'easuring and analy3ing custo'ers attitude toard

co'&eting &roducts" Brand aareness research ill hel& us deter'ine the effectiveness and

efficiency of our 'essage and 'edia" Finally e ill use custo'ers satisfaction studies togauge 'ar!et reaction"

;($ /est marketing

Test 'ar!eting is the 'ost i'&ortant issue to understand the &ros&ect of $usiness and getclear idea a$out $udget deter'ination in %9/ &rogra'"

3(2 Marketing organi!ation:

eather Art /;4 holds overall res&onsi$ility for 'ar!eting strategy and direction"

$2(2 Action programs:

eather Art ill $e introduced soon in ne sha&e under local entre&reneur and ill targetseg'ents to achieve &roductivity and sales volu'e in ne+t financial year"

$2($ Aspect $ " &roduction

%n &ractical ter's the eather Art /o'&any should ta!e the o&&ortunity under this &ro@ect

to organi3e the'selves so that they are in a &osition to $e a$le to 'anufacture the various&roducts re)uired for inter eather to a level of efficiency, )uality and co'&etitiveness that

satisfies the B2B and consu'er 'ar!ets in the various countries" ;sta$lishing the'selves inthe 'ar!et ill also strengthen the offer the co'&anies can 'a!e to the ;U 'ar!ets"

2-


24/29

$2($($ 1ntegration and ,upply opportunities

%n order to achieve integration and find su&&ly o&&ortunities the folloing actions should $ecarried out:

2


25/29

$2($(% Cost Competitiveness

%n order to 'aintain cost co'&etitiveness, the folloing actions should $e carried out:

$2($(5 Huality 1mprovement%n order to i'&rove )uality, the folloing actions should $e carried out:

Action >esponsi0ility >esources%n con@unction ith the study

a$ove further or! should studyslaughtering and &reservation

techni)ues ith the o$@ect ofu&grading the ra 'aterial"

Tanners Associations /entral overn'ent su&&ort

%ntroduce an eather Art ideclassification syste' for

finished leather

Tanners Associations /entral overn'ent su&&ort

%n con@unction ith the eatherart se'inar a$ove further or!

should study the latest finishingtechni)ues

Tanners AssociationsThe Tanning /o'&anies

overn'ent su&&ortagencies and

Tanners

Action >esponsi0ility >esources;ach /ountry to co''ission a study

on hides and s!ins collection ith ane'&hasis on reducing aste

Tanners

Associations

/entral overn'ent su&&ort

/reate an international data $ase on

sourcing, su&&liers, and &rices of

the 'a@or che'icalsre)uired in tanning

Tanners

Associations

/entral overn'ent su&&ort

Ta!e advantage of the ne leather cities as ano&&ortunity to re>organi3e &roduction

&rocesses to reduce costs

The Tanning/o'&anies

Business develo&'ent agenciesoffering &referential induce'ents for

ca&ital invest'ent

hold an eather art se'inar on the

latest tanning techni)ues ith a vie to reducing

costs

Tanners

Associations TheTanning /o'&anies

%nvitations to international che'ical

and 'achinery co'&anies to attendthe se'inar

25


26/29

$2($(8 &roductivity 1mprovement%n order to i'&rove &roductivity, the folloing actions should $e carried out:

action >esponsi0ility >esourcesFeasi$ility studies on 'an versus'achine for &roductivity gains

The Tanning /o'&anies %n house 'anage'ent

Bench'ar!ing&roductivity $est&ractices in S&ain, %taly, %ndia and

Tur!ey

The Tanning /o'&anies overn'ent su&&ortagencies and Tanning

co'&anies

%'&le'ent a &roductivity

i'&rove'ent drive

The Tanning /o'&anies overn'ent su&&ort

agencies and Tanningco'&anies

$2($(4 /raining

%n order to i'&le'ent training, the folloing actions should $e carried out:

action >esponsi0ility >esourcesAssist any country fro' eather Kone

ho is interested to esta$lishs&eciali3ed training center in the

eather and shoes industry"

%ndividual eather and

shoes associations

overn'ent su&&ort

agencies

Sho& floor su&ervisors, la$oratory

Technicians and research anddevelo&'ent &ersonnel should attend

the &ro&osed se'inar a$ove

The Tanning /o'&aniesAny country for' the L

countries hohaveadvanced

e+&erience inthis field

Selected and a&&ro&riate &ersonnel toattend the inea (elle leather

sho in %taly tostudy the latest

develo&'ents on dis&lay"

The Tanning /o'&aniesovern'ent su&&ortagencies

develo& u& to date s&eciali3ed training

&rogra' in the tanning industry$enefiting fro' hat ill

$e &resented

Tanning associations %ndividual country

develo&'ent agencies

$y the international che'ical and

'achinery co'&anies during the

se'inar and the

leathersho a$ove

Tanning co'&anies of

the countries

overn'ent su&&ort

agencies

28


27/29

11"o Suggestions eco''endations

After co'&leting our &ro@ect e have concluded so'e reco''endations for the eather Art

co'&any, hich are given $elo =

9ar!eting tea' should try to increase the availa$ility of in rural areas"

/o'e out innovative &ro'otions that $est fits the region 'ay $e event s&onsorshi&

in s'all scale for villages"

/reate the de'and on the $asis of age, &lace, consu'er?s taste and &ersonality etc"

According to our survey, Bangladeshi &eo&le li!e lo &rice &roduct" So for this

eather Art /o'&any should &roduce their &roduct according to the local de'and"

eather art /o'&any should try to e'&hasis 'ore on &roviding their infrastructure in

the 'ar!et to facilitate their custo'ers"

They should not only focus 'ore on young generation $ut also need 'ore focus on

'iddle>aged and the old &eo&le"

Should try to invent ne ays to stay relevant"

eather Art /o'&any ould $e a glo$al $rand" %t is alays a hard or! to 'aintain

the sa'e i'age around the orld" A $ad &atch in a single country 'ight ha'&er the

total i'age around the orld" That is ay !ee& researching the 'ar!et to address

the changing environ'ent i''ediately"

27


28/29

12" /onclusion

The /o'&any deals ith continuing its strong ell> recogni3ed consu'er $rand na'e

do'estically and internationally" The co'&any strives to recogni3e good groth &ros&ects

and o&&ortunities for ne and alternative &roduct develo&'ent ithin each of its core

$usinesses"

So, e co'e to the conclusion that the 'ar!eting strategy of eather Art is or!ing for

the' and the &roduct is gaining &o&ularity a'ong &eo&le day $y day" *ith an u&co'ing

year of ho&efully ne &ro'ising &roducts, eather art 'ight $e loo!ing at their lines of

convenient &roduct, services, and co''it'ent to $ring in 'ost of the trustorthy and $ring

revenue due to their increasing &o&ularity and consu'er de'and" *ith e+cellent resources

and &lanning, eather Art can only $ring in 'ore consu'ers" The co'&any?s financial future

&ro@ections are loo!ing &ro'ising and the co'&any?s &rofits ill continue to rise ith 'ore

consu'ers drin!ing their &roducts daily orld ide"

2C


29/29

C7A&/=>"111

1-" Sources.eferences

1" Te+t Boo!: Advertising and (ro'otion $y eorge ;" Belch 9ichael A,Belch 7th;dition

2" htt&:..en"i!i&edia"org.i!i.9ainL(age-" Bangladesh eather 9anufacturing ;+&ort association" Business &lan of Asian and ;uro&ean eather 'anufacturer and

e+&orter"!" #Princi$les of Marketing%& Phili$ 'otler& (ray Armstrong& )le*enth )dition"

+" #Marketing Management%& Phili$ 'otler& Millennium )dition"

7" Annual re&ort of (%/AD Bangladesh td"C" Annual re&ort of Adagir rou& 6Mordan, ;gy&t, 9orocco and Tunisia
http://en.wikipedia.org/wiki/Main_Pagehttp://en.wikipedia.org/wiki/Main_Page

Business Methods and Organization

Documents