The Footwear Industry in Bangladesh has started since the colonial era, although its modernization took place only in the late 1980s. When Bata Shoe Company established its manufacturing plant at Tongi in 1962, it was the first manufacturing plant to produce shoes on a large scale in East Pakistan. The local footwear industry is experiencing an annual growth rate of 21 percent, according to leather goods and footwear manufacturing and exporters association of Bangladesh. Bangladesh is set to emerge as the next manufacturing hub for the global footwear industry. The cheap labor is prompting top manufacturers to relocate their factories in the country. The good news is that a number of foreign investors as well as buyers have already shown interest in Bangladesh’s leather and footwear sector. Bangladesh has a host of potential products that can earn substantially large amounts of foreign exchange. Japan and Germany are now the biggest markets for Bangladeshi footwear but US buyers are increasingly showing interest in sourcing from Bangladesh. Bata Shoe Company is the market leader in the footwear industry since its operation in Bangladesh. The name Bata achieve such a position in the customer’s mind that whenever they heard the name of Bata, a footwear with high quality comes in to their mind. Bata has been serving its customer with wide assortment of products for about five decades and doing it successfully. It is very difficult to identify the customer’s class of Bata Shoe Company. Bata meets the footwear demands of the higher class and lower class simultaneously. It has developed a strong distribution channel all over the world through the establishment approximately 6,300 retail outlets, 10,000 franchises and thousand of depots and dealers. More then 50,000 people are directly involved in the www.AssignmentPoint.com 1
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The Footwear Industry in Bangladesh has started since the colonial era,
although its modernization took place only in the late 1980s. When Bata
Shoe Company established its manufacturing plant at Tongi in 1962, it
was the first manufacturing plant to produce shoes on a large scale in East
Pakistan. The local footwear industry is experiencing an annual growth
rate of 21 percent, according to leather goods and footwear
manufacturing and exporters association of Bangladesh.
Bangladesh is set to emerge as the next manufacturing hub for the global
footwear industry. The cheap labor is prompting top manufacturers to
relocate their factories in the country. The good news is that a number of
foreign investors as well as buyers have already shown interest in
Bangladesh’s leather and footwear sector. Bangladesh has a host of
potential products that can earn substantially large amounts of foreign
exchange. Japan and Germany are now the biggest markets for
Bangladeshi footwear but US buyers are increasingly showing interest in
sourcing from Bangladesh.
Bata Shoe Company is the market leader in the footwear industry since
its operation in Bangladesh. The name Bata achieve such a position in the
customer’s mind that whenever they heard the name of Bata, a footwear
with high quality comes in to their mind. Bata has been serving its
customer with wide assortment of products for about five decades and
doing it successfully. It is very difficult to identify the customer’s class of
Bata Shoe Company. Bata meets the footwear demands of the higher
class and lower class simultaneously. It has developed a strong
distribution channel all over the world through the establishment
approximately 6,300 retail outlets, 10,000 franchises and thousand of
depots and dealers. More then 50,000 people are directly involved in the
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production and selling of over 300 million pairs of shoes each year. Bata
Shoe Company manages a retail presence in 55 countries, and runs 40
production facilities across 26 countries. Bata international headquarter is
located in Switzerland which was previously located at Toronto, in
Canada. In recent times Bata Bangladesh has lunched more then 180 new
designs for different brands in their men, women, children and infant
categories.
Bata business policy is the segmentation of retail outlets according to
profiles of different market segments and the introduction of novel
concepts. Bata retail are categorized into four types. They are City stores,
Family stores, Bata Bazar and clearance outlets. Bata offers a number of
product lines to the prospective consumers in the existing market.
Science in inception, Bata shoe company (Bangladesh) Ltd. has strived
towards one goal customer satisfaction. With the vision of building a
worldwide family of satisfied customers and dedicated workers the
legacy of Tomas Bata continues strong and unabated to this day the
tradition is safe.
The marketer’s task is to devise marketing activities and assemble fully
integrated marketing’s programs to create, communicate, and deliver
value for consumer. Marketing activities come in all forms. McCarthy
classified these activities as marketing mix tools of four broad kinds,
which he called the four Ps of marketing: product, price, place, and
Promotion.
Marketers make marketing mix decisions for influencing their trade
channels as well as their final consumers. Once they understand these
groups, marketers make or customize an offering or solution. Inform
customers recognizing that many other sources of information also exist
set a price that offers real value and choose places where the offering will
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be accessible. The firm can change its price, sales force size and
advertising expenditures in the short run.
It can develop new products and modify its distribution channels only in
the long run. Thus the firm typically makes fewer period to period
marketing mix changes in the short run then the number of marketing mix
decision variables might suggest.
The four Ps represent the seller’s view of the marketing tools available
for influencing buyers. From a buyer’s point of view, each marketing
tools is designed to deliver a customer benefit. A complementary
breakdown of marketing activities has been proposed that centers on
customers. Its four dimensions (Siva) and the corresponding customer
questions these are designed to answer are;
1. Solution: How can I solve my problem?
2. Information: Where can I learn more about it?
3. Value: What is my total sacrifice to get this solution?
4. Access: Where can I find it?
Winning companies satisfy customer needs and surpass their expectations
economically and conveniently and with effective communication. Two
key themes of integrated marketing are that (1) many different marketing
activities communicate and deliver value and (2) When coordinated
marketing activities maximize their joint effects. In other words
marketers should design and implement any one marketing activity with
all other activities in mind.
For example, using an integrated communication strategy means
choosing communication options that reinforce and complement each
other. A marketer might selectively employ television, radio and print
advertising, public relations and events, and PR and web site
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Communications, so that each contributes on its own as well as
improving the effectiveness of the others. E ach communications must
also deliver a consistent brand image to customer at every brand contact.
Applying an intergraded channel strategy ensures that direct and indirect
channel, such as online and retail sales, work together to maximize sales
and brand equity.
The term "marketing mix" became popularized after Neil H. Borden
published his 1964 article, The Concept of the Marketing Mix. Borden
began using the term in his teaching in the late 1940's after James
Culliton had described the marketing manager as a "mixer of
ingredients". The ingredients in Borden's marketing mix included product
planning, pricing, branding, distribution channels, personal selling,
and fact finding and analysis. E. Jerome McCarthy later grouped these
ingredients into the four categories that today are known as the 4 P's of
marketing, depicted below:
These four P's are the parameters that the marketing manager can control,
subject to the internal and external constraints of the marketing
environment. The goal is to make decisions that center the four P's on the
customers in the target market in order to create perceived value and
generate a positive response
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PART ONE
INTRODUCTION TO THE
ORGANIZATIONAL OVERVIEW
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MARKETING MIX OF A FOOTWARE INDUSTRY
IN BANGLADESH: ASTUDY BASED ON BATA
SHOE COMPANY (BANGLADESH) LTD
1.0 INTRODUCTION TO THE ORGANIZATION
OVERVIEW
1.1 Introduction
Bata Shoe Company is the market leader in the footwear industry since
its operation in Bangladesh. The name Bata achieved such a position in
the customers mind that whenever they heard the name of Bata, footwear
with high quality comes into their mind. Bata has been serving its
customer with wide assortment of products for about five decades and
doing it successfully. It is very difficult to identify the customer’s class of
Bata Shoe Company. Bata touch almost very social class possible. Bata
meets the footwear demands of the higher class and lower class
simultaneously. However to stay closer to the customers, Bata shoe
company undertakes an assessment of the customers at a regular interval.
Bata desire to fulfill the ever changing customer’s needs and to do so the
outcome of the customer assessment plays a significant role. Here the
similar study undertaken with a permission of Bata Shoe Company to get
the feedback from regular customers. The questionnaire is taken from
Bata shoe company Bangladesh Ltd to conduct the survey among the
regular customers. This study is analysis marketing mix of Bata shoe
company commitment to service continues to this day, from the
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designers’ sketchbook through to the performance of our shoes on a
customer’s foot. Bata companies strive to supply the right products, at the
right time, at the right price, and in a manner that fulfill our service
commitment to both retail and wholesale customers.
1.2 Footwear Industry in Bangladesh
The Footwear industry in Bangladesh has started since the colonial era,
although its modernization took place only in the late 1980s. During the
British period, there was no Footwear manufacturing firm producing on a
mass scale in East Bengal. However a traditional cottage type Footwear
industry with limited production facilities existed in a skeleton from in
the district towns during the time. Various types of footwear were
imported, mainly from Calcutta. After the partition of Bangle in 1947,
footwear was imported from West Pakistan.
When Bata Shoe Company established its manufacturing plant at Tongi
in 1962, it was the first manufacturing plant to produce shoe on a large
scale in East Pakistan. In 1967, Eastern progressive shoe industries
(EPSI) established its production plant. It began exporting footwear
to USSR, Czechoslovakia and England. Both Bata and EPSI held major
shares in the local footwear market. The footwear industry suffered a
major setback during the war of liberation but was rehabilitated after
independence. Now footwear manufacturing units have recently been
established. Among them are Apex footwear, Excelsior shoes, and
paragon leather and footwear industries.
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Japan and Germany are now the biggest markets for Bangladeshi
footwear but US buyers are increasingly showing interest in sourcing
from Bangladesh. Bangladesh could have a billion dollar footwear export
sector by 2013, claim local shoe manufactures on the basis of both the
current growth in shipments and the increased production capacity in
factories under construction. If there assessment is correct, in the three
year period the level of exports can increase five fold from the $205
million worth of shoes that were exported in the last fiscal year that ended
in June 2010.
1.2.1 Multitude of Products
Bangladesh has a host of potential products that can earn substantially
large amounts of foreign exchange, if only the necessary patronage from
the overseas buyers is given from the sack of expending the countries
export base and thereby reach a sustainable status for the countries export
trade.
Recently, a new opportunity has opened up to further diversify the range
of Bangladesh’s exports base by including footwear and other leather
goods in the list of exports particularly to the European Union (EN)
market.
However, the country has already been exporting finished leather and
different kinds of leather products to the overseas market. These products
also enjoyed considerable demand because of their high quality. The
main reason for this was the natural advantage of leather that Bangladesh
produces. Despite the high quality6 of local animal hides both in raw and
finished from, Bangladesh was still trailing behind Vietnam and china in
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the export of footwear and other leather products in the European and
other market.
1.2.2 Manufacturing hub
Bangladesh is set to emerge as the next manufacturing hub for the global
footwear industry. The cheap labor is promoting top manufacturers to
relocate their factories in the country. The good news is that a number of
foreign investors as well as buyers have already shown interest in
Bangladesh’s leather and footwear sector.
Recently, the president of the Bangladesh finished leather, leather goods
and footwear exporters association (BFLLGFEA) informed all concerned
that three large investors in the footwear sector from Taiwan would set up
footwear factories in Dhaka and Chittagong exporting zones. The buyers
from EU, as well as other very highly developed industrial nations like
Japan have reportedly been showing importance in Bangladeshi leather
products. All these developments look promising for the local footwear
industry.
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The export processing zones at present have 18 shoe and leather goods
factories but there are at least seven large factories under construction,
mostly owned by big manufacturers in the shoe world. The factories
under constructions include Korean company Young one’s footwear
complex which is said to be the largest in Asia. The company started
construction of its mega shoe complex in Chittagong six month back. The
first part of the complex will go into production by the middle of next
year, and the company’s executives said they would be able to
manufacture about 30 million pairs of shoes by 2013.
In addition, Taiwanese shoe manufacturer pau Chen, which employs
about 4,00,000 workers in its factories in china and 50,000 in Vietnam, is
also building a large manufacturing facility in Chittagong. Australian
manufacturer bonbon shoe, a supplier to Hugo boss, and Xen Chen and
Genford of Taiwan, are also building footwear factories in Bangladesh.
Apex – Adelchi also has a new factory that will soon start production.
With an annual turnover of about $100 million, the Bangladesh – Italy
joint venture is now the largest exporter of footwear. However, with a
new joint venture factory, Blue Ocean footwear, due to go into
production by February 2011, Apex will get involved with a turnover of
nearly $200 million of footwear export by 2013.
1.2.3 Growth rate
The local footwear industry is experiencing an annual growth rate of 21
percent, according to a spokesman from another apex organization,
leather goods and footwear manufacturers and exporters association of
Bangladesh (LGFMEAM). However, to continue the trend, the present
level of growth has not only to be attained; it also has to be taken to a still
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higher level, if Bangladesh is to match the success of its immediate
competitors Vietnam.
According to a newly released statistics from the export promotion
Bureau of Bangladesh footwear exports from the country grew from US
$61 million in the period of July- November 2007 to $85 million in the
same period of 2008, recording a growth of 39 percent. In the first fore
months of the 2010 fiscal year’s footwear export is likely to cross $300
million. Though in the next two years the existing factories are likely to
export more shoes, it is the new capacity that will come on stream from
early 2011 that is expected to cause the huge spurt in growth.
Growth in exports is due to the low production cost in Bangladesh
compared to its neighboring countries: China, India and Vietnam, who
also have a very well entrenched leather and footwear export industry.
Order which earlier used to be given to china or India are now being
handed out to footwear manufacturers in Bangladesh because they are
able to produce low period but quality shoes, which have now found its
way into key markets in EU and Japan.
This growth in footwear exports has come as a blessing in disguise at a
time when leather exports have fallen by a massive 18 percent in the
period under review. Experts attribute the growth in footwear exports,
thanks to machineries imported from Italy that is trusted for its quality
output. In recessionary trends, high priced products tend to register a
negative growth, as consumers tend to shy away from them in preference
for value for money items. In this scenario, it is a golden opportunity for
the leather and footwear sector to increase its global market share.
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PART TWO
OVER VIEW OF
BATA SHOE COMPANY
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2.0 OVERVIEW OF BATA SHOE COMPANY
2.1 Brief history of Bata Shoe Company
Bata Shoe Company was founded by the famous entrepreneur Mr. Tomas
Bata who blew the wind of change in the footwear industry in 1894. The
company was started from zlin, Czechoslovakia, now known as the Czech
Republic. From that day onward Bata Shoe Company has been the largest
manufacturer and marketer of footwear in the world. The global business
of Bata comprises of shoe factories, tanneries, engineering plants, quality
control laboratories, product development and research centers.
Bata has developed a strong distribution channel all over the world
through the establishment approximately 6,300 retail outlets, 10,000
franchise and thousands of deports and dealers. More then 50,000 people
are directly involve in the production and selling of over 300 million
pairs of shoe each year. Bata Shoe Company manages a retail presence in
55 countries, and run 40 production facilities across 26 countries. Bata
international headquarter is located in Switzerland which was previously
located at Toronto, in Canada.
Bata today
. Serve 1 million customers per day
. Employee more then 50,000 people
. Operates 5000 retail stores
. Manages a retail presence in over 70 countries
. Run 27 production facilities across 20 countries
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2.2 Bata Business
Bata shoe organization companies are involved in every facet of the
business of shoes. Throughout the world, Bata services customers from
the store sales floor to the factory floor.
Retailing
Bata shoe organization companies have built successful retail store
concepts to satisfy changing customer tastes and needs. Each store futures
merchandise targeted to different lifestyles and people. The merchandise
ranges from footwear to clothing and goods complementing shoe
offerings. Sensitivity to and satisfaction of customer wants and needs has
allowed the Bata shoe organization (BSO) to became a world leader in
footwear.
Manufacturing
Tomas Bata’s revolutionary business concept was to industrialize the
shoe making process of that day. That type of thinking has been the
driving force behind the Bata shoe organization success. The Bata shoe
organization has been an innovator in the manufacturing of shoes over the
year. Bata personnel have made important. Advances in DVP (Direct
vulcanization Process), PVC, athletic footwear production and slush
molded footwear production.
Wholesaling
The Bata shoe organization (BSO) enjoys a unique position in the
wholesale marketplace. Global economies of scale enable BSO plants to
offer quality products at local prices, with many are operating at ISO
standards. Bata shoe organization production facilities are world
renowned for their commitment to quality and customers, and have
attracted production contracts from many international footwear brands.
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Brands & Product Development
Throughout the world, the Bata ® brand distinguishes well made and well
priced footwear. Many core articles for Bata ® branded collections are
designed in product development centers in Italy, the Far East and
Canada. Designers and merchandisers in Bata shoe ionization companies
broaden the collections by developing complementary styles to reflect
tastes, budgets and climates within their own market. Strict quality
controls govern the selection of materials and all production stages.
2.2.1 Business units of Bata shoe company
Bata is operating business in five business units such as Europe, Asia
pacific, Latin America, North America, and Africa. Bata announces its
worldwide presence through these five business units.
Figure 1: Business units of Bata shoe company
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2.2.2 Worldwide coverage of Bata
Red zones have already been entered by Bata shoe Organization.
Figure 2: Worldwide coverage of Bata
2.3 Bata shoe company (Bangladesh) Ltd.
Bata shoe organization started its operation in Bangladesh in 1962. The
company was incorporated in1972. The company is affiliated to the Bata
shoe company, the largest footwear manufacturing and marketing
organization.
According to Bata Bangladesh website (2010) it is mentioned that
currently, Bata Bangladesh operates 2 manufacturing plants at Tongi and
Dhamrai, have production capacity of around 1,10,000 pairs of shoes
daily. It has a modern tannery with the latest technological facilities to
process 5 million square feet of leather yearly. The tannery is equipped
with a high tech effluent treatment plant ensuring a pollution free
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environment for booth workers and the environment. Bangladesh’s
regional headquarter is located in Singapore.
Bata is playing a pivotal role in developing the leather industry of the
country. Bata has a firm commitment to eco- friendly business and a state
of the art Effluent treatment plant (ETP) has been set up to provide a
pollution free environment for booth workers and the locality.
Fashion would never be complete without a well designed pair of shoe.
This marketing insight has promoted Bata to introduce a number of
designer’s collection for men, women and children. Internationally
renowned brands such as Bata comfit, Marie Claire, Hush puppies,
Scholl, Nike, Bubblegummers, Sandak, Weinbrenner and B’ First are a
few names that testify to the momentous change towards branded shoe
marketing in Bangladesh. Specialized shoe categories such as athletic
shoe have been targeted through development of the power brand.
Uncompromising quality with striking designs have put Bata shoe in a
key position to appeal to different segments of consumer.
Another major change in the Bata business policy is the segmentation of
retail outlets according to profiles of different market segments and the
introduction of novel concepts such as Bata city stores. These selective
outlets, in conjunction with
Other types of outlets such as Bata Bazar and Bata family store, are
adding a new level of consumer satisfaction.
The city stores incorporate spacious floor space allowing a comfortable
shopping experience, modern interior decor enriched with novel shelving
systems, fittings, fixtures and lighting that can be found in the large retail
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shops in the Far East and Europe. Bata has a network of 242 retail outlets
located strategically in different parts of the country. These retail outlets
are an integral part of our brand marketing. This extensive retail network
is supplemented by an equally extensive network of depots and dealers.
Bata has 13 wholesale depots covering Bangladesh. Under these depots
390 RWD (Registered Wholesale Dealers) and 553 DSP (Dealer Support
program) stores are operating. Bata Bangladesh has already developed its
vision up to 2013 showing significant business growth as well as
increased market share.
One of the critical areas associated with external shareholders and the
community at large is the corporate social responsibility program of the
company. From supporting nationwide sports sponsorships and disabled
persons to addressing environment concern, scholarship program, charity
contribution etc – Bata has always supported individuals and
communities in need. Partnerships with other voluntary and charitable
organizations are another prominent feature of Bata’s corporate social
responsibility. Bata, in partnership with CARE, extends assistance to over
two thousand rural women in order to become independent entrepreneurs
in the Rajshahi, Camilla and Chittagong division selling shoe from door
to door under its rural sales program.
Science its inception, Bata shoe company (Bangladesh) Ltd. has strived
towards one goal customer satisfaction. With the vision of building a
world wide family of satisfied customers and dedicated workers the
legacy of Tomas Bata continuous strong and unabated to this day – the
first tradition is safe. Bata Bangladesh has about 1500 regular and
efficient employees and workers, who are highly committed to uplift the
company’s performance with high productivity and sales
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Through maintaining the quality. In recent times Bata Bangladesh has
lunched more then 180 new designs for different brands in their men,
women, children and infant Categories. Eventually they have received
excellent responses from their various target groups on the new designs.
2.3.1 Customer service
personalized service
Qualified and enthusiastic sales associates are engaged who take
customer’s satisfaction to heart. In many countries customer service goes
beyond the store with home deliveries, orders made possible via
catalogues, the web or even call centers.
Guaranteed customer satisfaction
In any Bata store in the world they repair, exchange or refund any
products with defects. They also exchange or refund on unworn
merchandise if one changes one’s mind. Proof of purchase is required for
refunds.
Bata Gift Voucher
Bata gift vouchers are like cash coupons that can be used by customers to
make purchases of Bata products from selected Bata shoe stores. Gift
vouchers are available in three denominations- Tk. 1,000 and Tk. 2,000.
Customer service center
Bata Shoe Company (Bangladesh) Ltd has a customer service center and
the contract address is: Phone: +88029800501-5 Ext: 209
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2.4 Mission & vision
Bata Shoe Company has been successfully running for years with a
mission and vision at the heart of all its operations.
2.4.1 Mission
“Introduction of a strong shoe line targeted to various market segments to
maintain leadership through increased market share.”
2.4.2 Vision
“To provide good quality shoes at an affordable price by keeping in mind
the comfort that needs to be there and providing new designs with it.”
2.4.3 Environmental Mission
To protect our people customers and communities and to protect our
natural environment in order to help sustain human development
globally.
Figure 3: Factories of Bata shoe company (Bangladesh) Ltd.
3.1 Tongi Plant
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3.2 Dhamrai Plant
2.5 Management of Bata shoe company (Bangladesh)
Ltd.
Name Designation
Mr. Muhammad Qayyum Company ManagerMr. M.Habibur Rahman Head of Human ResourceMr. Bishwajit Roy Retail managerMr. Minhaj Ahmed Chowdhury Production ManagerMr. Yee Siew NG Chief Financial OfficerMr. Ruhul Amin Molla Wholesale ManagerMr. Qayyum Khan Mahbub Purchasing ManagerMr. Carlos Arturo Zuluaga Sachez Product Development ManagerMr. Iraz Ahmed Chowdhury Merchandising Manager
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2.7 Bata business Types
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Bata business policy is the segmentation of retail outlets according to
profiles of different market segments and the introduction of novel
concepts. Bata retail store are categorized into four types:
City Stores
Bata city stores offer the urban customers a wide variety of current
fashion footwear and accessories. There are 25 city stores in Bangladesh,
16 in Dhaka metropolitan area, other in Chittagong, Sylhet, and in
Mymensingh metropolitan area. These stores are established in prime
locations, and provide a high level of customer service, exclusive shoe
lines with complementary accessories and contemporary shopping
environment are to discerning shoppers.
Figure 4: Bashundhara Mall Bata store (city store)
Family Stores
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Bata Shoe Company is undoubtedly the world’s leading family footwear
chain. The company offers a wide assortment of every day’s fashion
footwear. The products are primarily of the brand Bata. Nevertheless very
carefully selected articles from both local and international brands are
also marketed by the company. There are 60 family stores till date that
has been successfully operated all over the Bangladesh.
Bata Bazar
Bata Bazar is the largest display of Bata’s products among all others store
concepts. It provides the customer with broadest range of products and
accessories possible. This concept was introduced in 2003. They are
ideally located in power centers commercial parks and outlet centers with
easy parking facilities. There are 73 Bata bazars being operated.
Figure 5: Sadarghat Bata Bazar, Dhaka
Clearance Outlets
There are three Clearance outlets of Bata Shoe Company where
discounted shoes are sold.
Figure 6: Discounted shoes at clearance outlets
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2.8 SWOT Analysis of Bata shoe company (Bangladesh) Ltd
Strengths:
High quality products
Strong Brand image
Extensive product lines
Strong and mass distribution network
Wide range of associated brands
Skilled management team
Modern manufacturing facilities
Potential target market
Loyal customers
Weaknesses:
High price
More emphasize on quality rather than design
Lake of promotional activities
Less effort to attract new customer
High cost structure
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High import duties
High administrative cost
Vat & tax barrier
Opportunities:
Wide assortment of products offered
Better customer service
Rise in export
More emphasize on product quality and design
Strong retail store network
Neat & clean retail outlets
Trained salesmen
Threats:
“Apex” is considered the biggest threats
potential new brands like Bay Emporium
Counterfeiting of Bata shoes in uncontrolled locations
Consumer perception regarding high price
High price due to high production cost
Disruption of consistent supply
Switching new generation to trendy products
2.9 About Bata Bangladesh:
• 2 Manufacturing Plant
• 172 Retail stores
• 52 Agencies
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• 13 Depot
• 393 Wholesales
• 562 Dsp
• Earns 72 million taka in export (yearly)
2.10 Achievement
In 2010, Bata Shoe Co (BD) Ltd wins “ Super brands” award.
Suparbrands is a unique brand not only Bangladesh but also international
renowned brand and have a good brand image all over the world. In
Bangladesh only Bata shoe co (BD) Ltd has achieved this awarded.
2.11 Sponsor
“Bata is official clothing sponsor of the Bangladesh Cricket
Team”
Figure 7: Bata sponsor of Bangladesh cricket team
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2.12 No of the Design
Men Shoe
Dress shoe 31 Designs
Casual shoe 48 Designs
Sports shoe 38 Designs
Sandals 53 Designs
Thongs 32 Designs
Ladies shoe
Dress shoe 49 Designs
Casual shoe 69 Designs
Sports shoe 02 Designs
Sandals 53 Designs
Thongs 28 Designs
Kids
Infants 13 Designs
Boys 03 Designs
Girls 13 Designs
Sandals 14 Designs
Thongs 10 Designs
Scholl 08 Designs
2.13 Functional Department of Bata
The full activities the Bata shoe co (BD) Ltd are composed of following
major functional department activities.
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• Human Resource
• Merchandising
• Purchasing
• Costing & Efficiency
• Manufacturing
• Lab & Quality Assurance
• Advertising
• Management Information System (MIS)
• Retail
• Wholesale
• Finance & Administration
• Central Distribution Center (CDC)
• Associates Business Unit (ABU)
• Engineering
• Tannery
• Product Development
• Direct Sale & export
2.14 Corporate Office in Bangladesh
Tongi Industrial Area
Tongi, Gazipur
Bangladesh
Fax: 880-2-9800511
Phone: 880-2-9800501 – 5
E- Mail: bata 518 @ batabd .com
URL: www. batabd . Com
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PART THREE
MARKETING MIX OF
BATA SHOE CO (BD) LTD
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3.0 INTRODUCTION OF THE RESEARCH
PROJECT
3.1 Introduction
Footwear industry is one of the promising sectors in Bangladesh.
However, the country has already been exporting finished leather and
different kinds of leather products to the overseas market. These products
also enjoyed considerable demand because of their high quality. The
main reason for this was the natural advantages of leather that
Bangladesh produces. Recently, a new opportunity has opened up to
further diversify the range of Bangladesh’s export base by including
footwear and other leather goods in the list of exports particularly to the
European Union (EU) market.
At present, Bata is dominating in the footwear industry in Bangladesh.
Bata Bangladesh is affiliated to the Bata shoe organization, the world’s
largest footwear manufacturing and marketing organization. Bata Shoe
Company started its operation in Bangladesh in 1962, incorporation in
Bangladesh in 1972. Currently, Bata Bangladesh operates 2
manufacturing plant tongi and Dhamrai; Bata Bangladesh is producing
around 110,000 pairs of shoes daily. It has a modern tannery with the
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largest technological facilities of process 5 million square feet of leather
yearly. The tannery is equipped with high – tech effluent treatment plant
ensuring a pollution free environment for both workers and locality where
they operate.
Bata’s strength lies in its worldwide presence. While local companies are
self- governing, each one benefits from its link to the international
organization for back- office systems, product innovations and sourcing.
Although Bata operates in a wide variety of markets, climates and buying
power Bata companies share the same leadership points. Two important
ones are product concept development and constant improvement of
business process in order to offer customers great value and the best
possible service. Bata strives to supply the right products, at the right
time, at the right price, and in a manner that fulfill its service
commitments to both retail and wholesale customers. Historical strong
presence in many developing countries provides them with a deep
understanding of the local cultures and needs. Therefore their position
entices them tackle concerns in priority with local initiatives in close
partnership with specialists on the field. However to say closer to the
customers and to fulfill the ever changing customer’s needs, the customer
assessment plays a significant role.
3.2 Background of the Study
Bata Shoe Company is the market leader in the footwear industry since
its operation in Bangladesh. The name Bata achieved such a position in
the customers mind that whenever they hared the name of Bata, footwear
with high quality comes into their mind. Bata has been serving its
customers with wide assortment of products for about five decades and
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doing it successfully. Bata offers a number of product lines to the
prospective consumers in the existing market. Bata has a truly
international team whose diversity of ideas to develop new style
footwear, shocks, sneakers, etc. Bata has introduced huge product line of
men footwear shoes, sandal, sneakers, shocks, women footwear, kid’s
footwear and many other types of footwear line the company is operating
in the market. About half line of product the company imports and sells
under the franchising. Bata also sell ten international brands footwear at
their retail shop. Bata has been delivering hand – crafted quality footwear
over 100 years to maintain and build on heritage of creating high quality,
comfortable and stylish shoes.
3.3 Origin of the Report
Bangladesh has a host of potential products that can earn substantially
large amounts of foreign exchange, if only the necessary patronage from
the overseas buyers is given from the sack of expending the countries
export base and thereby reach a sustainable status for the countries export
trade. In marketers task is to devise marketing activities and assemble
fully integrated marketing programs to create communicate and deliver
value for consumer. Marketing activities come in all forms McCarthy
classified this activity as marketing mix tools of four broad kinds which
he called the four Ps of marketing.
Product, price, promotion, place is the particular marketing variables
under each p are shown in market. Recently, a new opportunity has
opened up to further diversify the range of Bangladesh’s exports base by
including footwear and other leather goods in the list of exports
particularly to the European Union (EN) market.
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However, the country has already been exporting finished leather and
different kinds of leather products to the overseas market. These products
also enjoyed considerable demand because of their high quality. The
main reason for this was the natural advantage of leather that Bangladesh
produces. Despite the high quality6 of local animal hides both in raw and
finished from, Bangladesh was still trailing behind Vietnam and china in
the export of footwear and other leather products in the European and
other market.
3.4 Research problem
Marketers make marketing mix decisions for influencing their trade
channel as well as their final consumers. Ones they understand these
groups marketers make or customize an offering or solution.
To find out the market prospect or potential of Bata shoe company
(BD) Ltd.
To determine the customer & service.
To determine the effectiveness of the competitors price.
To determine the effectiveness of current promotional activities.
3.5 Research Objectives
The research objectives are broken down in to broad and specific
objectives which are enumerated below:
3.5.1 Broad Objective
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The board objective of the study is to assess the customer priority of shoe
industry in Bangladesh focusing on Bata shoe company (BD) Ltd. This
has been broken into following specific objectives.
3.5.2 Specific Objectives
To examine the current state of Bata shoe company (BD) Ltd in the
market
To examine the perception about Bata shoe in consumer mind
To analyze the impact of Quality shoes for customer
To analyze the impact of Comfort for customer
To analyze the impact of value for price offered
To analyze the impact of fashionable style offered
To analyze the impact of brands of shoes offered
To analyze the impact of selection of colors, style and size
To analyze the impact of advertising on customer
To analyze the impact of placement
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3.6 Scope
To achieve the objectives it is needed to collect data form customer
within the country. But for time, cost and other limitations. For achieving
the objectivities the study will be focused on the quality product, price,
promotion, placement conformability and other criteria of Bata shoes as
well as the completive position with Apex, Bay and other competitors.
While doing so it will also identify the limitations and the weakness of
the issue.
3.7 Benefit of the Study
To survive in an ever growing industry, it is very important for any
company to know its customers level of satisfaction to the products and
service provided by the company. This research will facilitate Bata Shoe
Company to know the present market situation and what customer wants
from company. This information can help to design future strategic to
retain existing the customers and obtain new one.
3.8 Literature review About Marketing Mix
What is the marketing mix?
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The marketing mix is probably the most famous marketing term. Its
elements are the basic, tactical components of a marketing plan. Also
known as the Four P's, the marketing mix elements are price, place ,
product, and promotion. Read on for more details on the marketing mix.
The concept is simple. Think about another common mix - a cake mix.
All cakes contain eggs, milk, flour, and sugar. However, you can alter the
final cake by altering the amounts of mix elements contained in it. So for
a sweet cake add more sugar!
It is the same with the marketing mix. The offer you make to you
customer can be altered by varying the mix elements. So for a high
profile brand, increase the focus on promotion and desensitize the weight
given to price. Another way to think about the marketing mix is to use the
image of an artist's palette. The marketer mixes the prime colors (mix
elements) in different quantities to deliver a particular final color. Every
hand painted picture is original in some way, as is every marketing mix.
If you'd like to see the marketing mix applied to a real business - then
take a look at our Ryanair marketing mix.
Some commentators will increase the marketing mix to the Five P's, to
include people. Others will increase the mix to Seven P's, to include
physical evidence (such as uniforms, facilities, or livery) and process (i.e.
the whole customer experience e.g. a visit the Disney World). The term
was coined by Neil H. Borden in his article The Concept of the Marketing
Mix in 1965.
3.8.1 Integrated Marketing
The marketer’s task is to devise marketing activities and assemble fully
integrated marketing’s programs to create, communicate, and deliver
value for consumer. Marketing activities come in all forms. McCarthy