Sunteți pe pagina 1din 23

EXECUTIVE SUMMARY

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
Bangladeshs 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 customers 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 customers 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 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 marketers task is to devise marketing activities and assemble fully integrated marketings
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 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 sellers view of the marketing tools available for influencing buyers.
From a buyers 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

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
1940s after James Culliton had described the marketing manager as a mixer of ingredients.
The ingredients in Bordens marketing mix included product planning, pricing, branding,
distribution channels, personal selling, advertising, promotions, packaging, display, servicing,
physical handling, and fact finding and analysis. E. Jerome McCarthy later grouped these
ingredients into the four categories that today are known as the 4 Ps of marketing, depicted
below:
These four Ps 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 Ps on the customers in the target market in order to create perceived value and
generate a positive response.
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 customers 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 customers 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 designers sketchbook through to the performance of
our shoes on a customers 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.

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.
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.
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 Bangladeshs 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 the export of footwear and other leather
products in the European and other market.
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
Bangladeshs 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.
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 ones 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 companys 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, BlueOcean 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.
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 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 years 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.
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 CzechRepublic. 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
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 Batas 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
Wholesaling

production and slush molded footwear production.

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.
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.
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.

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 environment for booth workers and the environment.
Bangladeshs 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 designers 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 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
Batas 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 companys performance with high productivity and
sales
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.
Customer service
personalized service

Qualified and enthusiastic sales associates are engaged who take customers 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 ones 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
Mission & vision
Bata Shoe Company has been successfully running for years with a mission and vision at the
heart of all its operations.
Mission
Introduction of a strong shoe line targeted to various market segments to maintain leadership
through increased market share.
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.
Environmental Mission
To protect our people customers and communities and to protect our natural environment in order
to help sustain human development globally.
Bata business Types
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.

Family Stores

Bata Shoe Company is undoubtedly the worlds leading family footwear chain. The company
offers a wide assortment of every days 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 Batas 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.
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
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
About Bata Bangladesh:
2 Manufacturing Plant
172 Retail stores
52 Agencies
13 Depot
393 Wholesales
562 Dsp
Earns 72 million taka in export (yearly)
Functional Department of Bata
The full activities the Bata shoe co (BD) Ltd are composed of following major functional
department activities.

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

MARKETING MIX OF
BATA SHOE CO (BD) LTD
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 Bangladeshs 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 worlds 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 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.
Batas 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 customers needs, the
customer assessment plays a significant role.
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 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, kids 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.
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 Bangladeshs
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 the export of footwear and other leather
products in the European and other market.
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.
Research Objectives
The research objectives are broken down in to broad and specific objectives which are
enumerated below:
Broad Objective
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.
Broad Objective
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.
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
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.
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.
Literature review About Marketing Mix
What is the marketing mix?
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 Ps, 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 artists 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 youd 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 Ps, to include people. Others
will increase the mix to Seven Ps, 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 articleThe Concept of the Marketing Mix in 1965.
Integrated Marketing
The marketers task is to devise marketing activities and assemble fully integrated marketings
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 the particular marketing
variables under each p are shown in figure.

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 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 sellers view of the marketing tools available for influencing buyers.
From a buyers 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

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.
Current Marketing Mix
Product
Bata offers a number of product lines to the prospective consumers in the existing market. Bata
has truly international team whose diversity of ideas to develop new style footwear, shocks,
sneaker, etc. Bata has introduce huge product line of men footwear shows, sandal, sneakers,
shocks, women footwear, kids 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.
Premium collection
Bata has been delivering hand crafted quality footwear over100 years to maintain and build on
heritage of creating high quality, comfortable and stylish shoes.
Product
For many a product is simply the tangible, physical entity that they may be buying or selling.

You buy a new car and thats the product simple! Or maybe not. When you buy a car, is the
product more complex than you first thought? The Three Levels of a Product.
The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is

planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as
it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die
out (decline).
The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC).
However, CLC focuses upon the creation of and delivery of lifetime value to the customer i.e.
looks at the products or services that customers NEED throughout their lives.

To create the right marketing mix, businesses have to meet the following conditions:
The product has to have the right features for example, it must look good and work
well.

The price must be right. Consumer will need to buy in large numbers to produce a healthy

profit.
The goods must be in the right place at the right time. Making sure that the goods arrive when

and where they are wanted is an important operation.


The target group needs to be made aware of the existence and availability of the product
through promotion. Successful promotion helps a firm to spread costs over a larger output.

For example, a company like Kelloggs is constantly developing new breakfast cereals the
product element is the new product itself, getting the price right involves examining customer
perceptions and rival products as well as costs of manufacture, promotion involves engaging in a
range of promotional activities e.g. competitions, product tasting etc, and place involves using the
best possible channels of distribution such as leading supermarket chains. The product is the
central point on which marketing energy must focus. Finding out how to make the product, setting
up the production line, providing the finance and manufacturing the product are not the
responsibility of the marketing function. However, it is concerned with what the product means to
the customer. Marketing therefore plays a key role in determining such aspects as:
the appearance of the product in line with the requirements of the market
The function of the product products must address the needs of customers as identified
through market research.

The product range and how it is used is a function of the marketing mix. The range may be
broadened or a brand may be extended for tactical reasons, such as matching competition or
catering for seasonal fluctuations. Alternatively, a product may be repositioned to make it more
acceptable for a new group of consumers as part of a long-term plan.
Placement
Bata has a network of 250 retail outlets located statically in different parts of the country. This
extensive retail network is also supplemented by an equally extensive network of deports and
dealers. The retail outlets are segmented according to the profile of customer and different
market segments. According to the segmentation the three different types of outlets are
Bata City: The city stores incorporate spacious floor space allowing a comfortable shopping

experience, modern interior enriched with novel shelving systems, fittings, fixtures and lighting.
The city stores are established in prime location of metropolitan city. Among the 25 city stores
16 are established in Dhaka and other in major business area.
Bata Bazar: Bata Bazar holds the largest display of Batas products consisting wide range of

assortment. It provides the customers with broadest range of products and accessories in a
different price range possible. But exclusive brands and products are not been sold here. This
concept was introduced in 2003.
Bata Family: It is more a like a clearance outlet. Most of the products which are been sold
here are in sale.

These three types of stores are serving different segment of target market and adding a new
value in customer satisfaction.

Place

Another element of Neil H.Bordens Marketing Mix is Place. Place is also known as channel,
distribution, or intermediary. It is the mechanism through which goods and/or services are
moved from the manufacturer/ service provider to the user or consumer.

Although figures vary widely from product to product, roughly a fifth of the cost of a product goes
on getting it to the customer. Place is concerned with various methods of transporting and
storing goods, and then making them available for the customer. Getting the right product to the
right place at the right time involves the distribution system. The choice of distribution method will
depend on a variety of circumstances. It will be more convenient for some manufacturers to sell
to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or
customers.
Price
Bata use price- quality leadership approach. They set the price based on value. In some country
they target high quality niche and in some country price sensitive segment. Every where they set
the price based on value they delivered.
Bata follow geocentric pricing techniques. According to the demographic features the local pricing
for Bata shoes for men, women and children is given bellow:
Category

Highest [BDT]

Lowest [BDT]

Men Dress

6990

990

Men Summer

4490

550

Women Dress

5490

1390

Women Summer

2490

690

Athletic footwear

1390

12000

Children footwear

290

1290

Sandak/Sandals

120

90

Promotion
Bata has put less effort in promoting their products. They think the 250 retail outlet throughout the
country helps Bata to do integral brand marketing. Other then that they are the official clothing
sponsor of Bangladesh Cricket Team. However Bangladesh, Bata has done many promotional
activities like:
TV campaign
Print advertisement
Outdoor (Billboard)
Web based E- flyer, SMS
Among all those promotional activities they have emphasized on outdoor advertising in
Bangladesh.
Another one of the 4Ps is promotion. This includes all of the tools available to the marketer for
marketing communication. As with Neil H.Bordens marketing mix, marketing communications
has its own promotions mix. Think of it like a cake mix, the basic ingredients are always the
same. However if you vary the amounts of one of the ingredients, the final outcome is different.

Promotion is the business of communicating with customers. It will provide information that will
assist them in making a decision to purchase a product or service. The razzmatazz, pace and
creativity of some promotional activities are almost alien to normal business activities.
The cost associated with promotion or advertising goods and services often represents a
sizeable proportion of the overall cost of producing an item. However, successful promotion
increases sales so that advertising and other costs are spread over a larger output. Though
increased promotional activity is often a sign of a response to a problem such as competitive
activity, it enables an organization to develop and build up a succession of messages and can be
extremely cost-effective.
Findings
The name Bata achieved such a position in the customers mind that whenever they heard the

name of Bata, footwear with quality into their mind. From the survey it is found that when
people are asked about Bata they refer to the quality of shoes those they are using from
childhood.
Why Bata is the first brand that comes to potential customers minds when they think of

purchasing footwear is because of Bata has a huge brand presence in Bangladesh due to its
long time operations and its quality is seemed to be reliable. These combine to from the
reason.
Value for price offered by the store is an important factors to the respondents those was

surveyed. From the frequency distribution it is found that almost 85% respondent were more or
less agree with the fact that value for price offered by the customer. Base on the quality of Bata
most of the people said Batas price is fair reasonable then the others. Although there are
some shoes which are highly priced by Bata, but those are of push quality. To maintain the
higher quality prices are little high.
Bata is a leadership position in the footwear industry for providing quality products. The finding
suggest that, quality of shoes is an important factor to the respondents those were surveyed.
Almost 97% respondents were agree with the fact that quality of shoes has impact on customer
satisfied and they are more or less satisfied with the quality of Bata.

The finding suggests that, comfort of shoes is an important factor on the respondents those

were surveyed. Almost 84% respondents were strongly agreed with the fact that comfort of
shoes has impact on customer. Bata has a strong team who always work for the development
of the products.
Fashionable style is an important factor to the respondents those were surveyed. Now a days

people are more fashion concern that is way they agreed with the fact that fashionable style
has impact on the customer. From the comparison it is found that Bata is lacking in these very
criteria then the competitors.
Selection colors, styles and size is an important factors to the respondents those were
surveyed. From the frequency distribution it is found that almost 90% respondent were more or

less agreed with the fact that selections of colors, style and sizes has impact on the customer
positively related.
Brands of shoes offered by the store are important factors the respondents those were

surveyed. From the frequency distribution it is found that almost 72% respondent were more or
less agreed with the fact that availability of brand shoes is important to them and has a positive
impact on customer. Bata serves to the customers which rich collection of brand shoes.
From the study it is found that almost 30% respondents were agreed and another 30% were

indifferent with the fact that advertising has impact on the customer. Advertising is a
communication tools use to promote the product to the customers. It has a positive impact on
the customers. Bata advertises its products through different media. In Bangladesh the
company is the highest payer in advertising and communication.
Finally, from the analysis it has found that Bata provides superior value to the customers in
quality of shoes, comfort ability of shoes, Value for pricing, fashionable style, selections of
colors, brands, advertising and design all of these bring Bata close to the customers.

Recommendations
From the research it is evident that Bata has a large loyal customers base throughout Dhaka city
who are more or less satisfied with Batas products and services. For now it seems that word of
mouth and brand recognition are in a quite secure position. However Bata can take some steps
to improve their customer relationship and to attract new potential customers.
Bata fails to reflect up to date fashion shoes for its customers. Customers think that other

competitors always bring fashion shoes for the customers. If Bata can bring up to date
products in the market place, the sales return of the company undoubtedly increased into
double. It is also recommended that Batas market share will increase by up to date fashion
shoes.
Bata has good brand awareness but their lack of promotional activity causes many of the new
offering unnoticed. To overcome this difficulty Bata can introduce brochures (direct mail), news
paper ad regarding their new arrivals and price discount scheme.

Conclusion
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 customers 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.
There are some emerging shoe stores in Bangladesh which have already gained customers
loyalty in footwear product. The study compared the Bata shoe company with other emerging
shoe brand such as Apex, Bay emporium, Jenny, Pegasus and many unorganized shoe stores.
Bata Shoe Company compared with these other shoe stores on some factors. The finding of the
study is that Bata Shoe Company is in a better position in the market place than the competitors

except serving customers up to date stylish and trendy shoes. Bata has a loyal customers group
who buy Bata only for its quality. They do not need to go through any major overhauls, but a few
tweaks here and there can improve upon their current position and secure them as the market
leader in times to come.

S-ar putea să vă placă și