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Transcript of Internship report-on-marketing-mix-of-Bata-shoe-company- Main part.
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,
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 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
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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.
Marketing Mix
Product Price Place Promotion
Chart 1: Marketing Mix
3.8.2 Each marketing mix is divided in sub parts:
Product: Price:
Product variety List price
Quality Discount
Design
Allowances
Features Payment
period
Brand name Creditors
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Packing
Sizes
Services
Warranties
Returns
Promotion: Place:
Sales promotion Channels
Advertising Coverage
Sales force
Assortments
Public relations Locations
Direct marketing Inventory
Transport
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 seller’s view of the marketing tools available
for influencing buyers. From a buyer’s point of view, each marketing
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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
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channel, such as online and retail sales, work together to maximize sales
and brand equity.
3.9 Current Marketing Mix
3.9.1 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, 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.
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 that's the
product - simple! Or maybe not. When you buy a car, is the
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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.
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For example, a company like Kellogg's 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.
Brands
Bata store carry following shoes brands:
Hush Puppies
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Weinbrenner
Nike
Power
North Stare
Bata Comfit
Sandak
Bubble Gummers
Marie Claire
Scholl
Bata
Ambassador
Bata Industrial
B ‘ First
Island
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Pata Pata
Figure 8: Bata brands logo
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Hush Puppies
Hush puppies is the international brand, Bata uses the franchising power
to supply the product in the Bangladeshi market. The target customers of
this model are rich people. Basically it is an American brand.
Figure 9: Hush Puppies
Weinbrenner
The Weinbrenner shoe line is made up of leather shoes and boots, style in
low, mid, and high cut. Cuts or design are directly fashion, but can
include materials which help to fell comfort in doing outdoor strong
works. The shoes are casual in style closures generally with laces and
eyelets, sometimes supplemented with hooks, D- rings and straps with
buckles.
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Figure 10: Weinbrenner
Nike
Nike is a worldwide famous and popular athletic shoe brand. Bata carries
this brand as a licensing. This brand is for a different segment of
customers in Bangladesh. Though it is an athlete shoe but in Bangladesh
young generation wear it as a fashionable product. The target customer of
this product is higher income group people.
Figure 11: Nike
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Power
Power is also an athlete shoe which is considered as the alternative of
Nike. Power shoes are cheaper than Nike shoes. The target customer of
this shoe is middle class people.
Figure 12: Power
North-Star
North-Star is a trendy shoe focused to the young customer group. This
shoe is cheaper than Nike and power. This is considered as a seasonal
product as the demand increase in winter.
Figure 13: North-Star
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Bata Comfit
Comfit has an important feature in design and assembly of all the comfit
shoes. This brand is focused on both comfort and style of shoes. Unit
rubber, PVC, PU or TRR sole are commonly used in this brand. “Get
comfortable today” is a tagline commonly associated with this range of
shoes.
Figure 14: Bata Comfit
Sandak
Sandak is a plastic made Bata product for lower income people to use in
every season of the year. This shoe is also made for rough use for all level
of customers.
Figure 15: Sandak
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Bubblegummers
Bubblegummers is the leading children’s footwear brand in Latin
America and has developed an extensive presence in Asia and in Europe.
Bubblegummers offers quality, comfortable, funny and colorful shoes for
the 0 to 9 age that assure the healthy growth of a child’s foot.
Figure 16: Bubblegummers
Bata
Bata is the old and own brand of Bata Shoe Company. But by the time
being this brand is updated to fulfill the customers demand.
Figure 17: Bata
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Marie Claire
Marie Claire shoes are for women with an active lifestyle who seek
contemporary modern styles. Marie Claire shoe stores successfully
opened in Latin America and Asia. Bata brands are the trademark owner
of Marie Claire for shoes worldwide 9 except in Japan and Korea).
Figure 18: Marie Claire
Bata Industrial
Footwear beyond safety Bata Industrial is a specialized division of the
Bata group producing Industrial and work- related footwear, hosiery and
accessories.
Figure 19: Bata Industrial
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Scholl
Scholl is a female brand which is focused for the school going girls.
Figure 20: Scholl
3.9.2 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.
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Bata Bazar: Bata Bazar holds the largest display of Bata’s
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.Borden's 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.
Alth
ough 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.
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3.9.3 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
Table 1: Pricing of Bata Shoes
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3.9.4 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 4P's is promotion. This includes all of the tools
available to the marketer for 'marketing communication'. As with Neil
H.Borden's 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
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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.
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PART FOUR
RESEARCH METHODOLOGY
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4.1 Type of Research
This research is a qualitative exploratory research, as it is an initial
research conducted clarify and define the nature of a problem. It is
qualitative as the results of this research focuses on words and
observations, instead of numbers and mathematical analysis. At first an
exploratory research has been conducted to define the nature of the
problem.
4.2 Basic Research Method
This section has described the basic research plan of the study. It has
specified all the procedure necessary to solve the research. The basic
research method in this study will be survey method. An observation
method will not produce expected result. As experiment study is costly so
it will not be undertaken.
4.3 Research Preparation
A Planned questionnaire is very impotent to do the research. In this case
a structured questionnaire was provided by Bata Shoe Company. Due to
some statistical analysis difficultly the questionnaire was rephrased a
little bit. The questionnaire is prepared by considering following criteria:
• pertinent for research
• Simple language is used
• Leading & loaded questions is avoided
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• Easy to understand questions
4.3.1 Bata Footwear compare with other company
About 78.4% of people mention Bata as their first option when they think
of any footwear company. 15.1% respondent mentioned about Apex.
And rests of the respondents have mentioned other company name as
their first choice.
Table 2: Frequency distribution of Bata shoe co. compare with
other
Frequency Percent
Bata
Apex
Bay
Liberty
Shamrat
Rado
34
156
13
3
1
1
13.6
62.4
5.2
1.2
.4
.4
Chart 2: Bata shoe co. compare with other company
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4.3.2Bata’s price v/s competitor’s price
Based on the quality of Bata 56 percentage of people said Bata’s price is
fair reasonable. On contrary 41 % of survey people said according to the
quality Bata is changing more.
Table 3: Frequency distribution of Bata’s quality v/s price
Frequency Percent
Expensive for the quality
Fair and reasonable
Medium
Low
101
141
6
2
40.4
56.4
2.4
.8
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Bata compare w ith other
020406080
100120140160180
Frequency Percent
company
Bat a
Apex
Bay
Libert y
Shamrat
Rado
Total 250 100.0
Chart 3: Bata’s quality v/s price
4.3.3 Quality of shoes
Table 4: Frequency distribution of Quality of shoe
Frequency Percent
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40.4
56.4
2.40.81
2
3
4
5
6
7
neutral
Agree
Strongly Agree
Total
7
24
219
250
2.8
9.6
87.6
100.0
Chart 4: Quality of shoes
4.3.4 Brands offered
Table 5: Frequency distribution of brand of shoe offered
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qua lity of shoe
0
50
100
150
200
250
300
neut ral Agree St ronglyAgree
Tot al
Series1
Series2
Frequency Percent
Disagree
Neutral
Agree
Strongly Agree
Total
12
59
109
70
250
4.8
23.6
43.6
28.0
100.0
Chart 5: Brands of shoes offered
Out of 250respondents 199 respondents were male and 51 respondents
were female.
Table 6: Frequency distribution of sex of the respondent
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Brands of shoe offe red
0
50
100
150
200
250
300
1 2 3 4 5 6 7
Series1
Series2
Series3
Frequency Percent
Male
Female
Total
199
51
250
79.6
20.4
100.0
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Chart 6: Percentage of respondent’s sex
4.4 Respondents Age
The respondent age group was categorized in eight groups. The aximum
number of respondents falls in to the age group of 25-34. The next higher
number was in the age group of 18-24.
Table 7: Frequency distribution of Age of the respondent
Frequency Percent
Under 18
18-24
25-34
35-44
45-54
55-64
25.00
Total
5
79
106
33
20
5
2
250
2.0
31.6
42.4
13.2
8.0
2.0
.8
100.0
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Sex
Male
Female
Tot al
Chart 7: Age group of the respondent
Table 8: Frequency distribution of comfort of shoes
Frequency Percent
Neutral
Agree
Strongly Agree
Total
11
31
208
250
4.4
12.4
83.2
100.0
Chart 8: Comfort of shoes
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age of the respondent
0
50
100
150
200
250
300
Under 18
18 -24
25-34
35 -44
45-54
55-64 25
Total
Series1
Series2
comfort of shoes
0
50
100
150
200
250
300
Neutral
Agree
Stron
gly A
gree
Total
Frequency
Percent
Table 9: Frequency distribution of fashionable style
Frequency Percent
strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Total
1
2
36
91
120
250
.4
.8
14.4
36.4
48.0
100.0
Chart 9: Fashionable style
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fashionable style
050
100150
200250
300
stro
ngly D
isagre
e
Disagre
e
Neut ral
Agree
Stron
gly A
gree
Total
Series1
Series2
Table 10: Frequency distribution of selection of colors, style and sizes
Frequency Percent
Disagree
Neutral
Agree
Strongly Agree
Total
9
14
91
136
250
3.6
5.6
36.4
54.4
100.0
Chart 10: selection of colors, style and sizes
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Se lection of color ,Style and sizes
0
50
100
150
200
250
300
Disagre
e
Neut ral
Agree
Stron
gly A
gree
Total
Series1
Series2
PART FIVE
FINDINGS OF THE
ANALYSIS, CONCLUSION
AND RECCOMENDATIONS
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FINDINGS OF THE ANALYSIS, CONCLUSION
AND RECCOMENDATIONSD
5.1 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 Bata’s 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.
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• 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 day’s 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
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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.
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5.2 Recommendations
From the research it is evident that Bata has a large loyal customer’s base
throughout Dhaka city who are more or less satisfied with Bata’s
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 Bata’s 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.
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5.3 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
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.
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.
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