Report on Marketing Mix of Bata Shoe Company

8/10/2019 Report on Marketing Mix of Bata Shoe Company

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Report-on-Marketing-Mix-of-Bata-

Shoe-company


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The Footwear Industry in Bangladesh has started since the colonial era,

although its modernization took place only in the late 1980s. hen Bata

!hoe "ompany esta#lished its manu$acturing plant at karachi in 19%&, it

was the $irst manu$acturing plant to produce shoes on a large scale in 'ast

(akistan. The local $ootwear industry is e)periencing an annual growth

rate o$ &1 percent, according to leather goods and $ootwear

manu$acturing and e)porters association o$ (akistan.

(akistanis set to emerge as the ne)t manu$acturing hu# $or the glo#al

$ootwear industry. The cheap la#or is prompting top manu$acturers to

relocate their $actories in the country. The good news is that a num#er o$

$oreign in*estors as well as #uyers ha*e already shown interest in

Bangladesh+s leather and $ootwear sector. (akistan has a host o$ potential

products that can earn su#stantially large amounts o$ $oreign e)change.

apan and -ermany are now the #iggest markets $or Bangladeshi

$ootwear #ut ! #uyers are increasingly showing interest in sourcing$rom Bangladesh.

Bata !hoe "ompany is the market leader in the $ootwear industry since

its operation in Bangladesh. The name Bata achie*e such a position in the

customer+s mind that whene*er they heard the name o$ Bata, a $ootwear

with high /uality comes in to their mind. Bata has #een ser*ing itscustomer with wide assortment o$ products $or a#out $i*e decades and

doing it success$ully. It is *ery di$$icult to identi$y the customer+s class o$

Bata !hoe "ompany. Bata meets the $ootwear demands o$ the higher

class and lower class simultaneously. It has de*eloped a strong

distri#ution channel all o*er the world through the esta#lishment

appro)imately %,00 retail outlets, 10,000 $ranchises and thousand o$

depots and dealers. ore then 20,000 people are directly in*ol*ed in the


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production and selling o$ o*er 00 million pairs o$ shoes each year. Bata

!hoe "ompany manages a retail presence in 22 countries, and runs 30

production $acilities across &% countries. Bata international head/uarter is

located in !witzerland which was pre*iously located at Toronto, in

"anada. In recent times Bata (akistan has lunched more then 180 new

designs $or di$$erent #rands in their men, women, children and in$ant

categories.

INTRODUCTION TO THE

ORGANIZATIONAL OVERVIEW


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MARKETING MIX OF A FOOTWARE INDUSTRY

IN Pakistan: A STUDY ASED ON ATA SHOE

COMPANY LTD!

INTRODUCTION TO THE ORGANIZATION

OVERVIEW

Int"#$%&ti#n

Bata !hoe "ompany is the market leader in the $ootwear industry since

its operation in Bangladesh. The name Bata achie*ed such a position in

the customers mind that whene*er they heard the name o$ Bata, $ootwear


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with high /uality comes into their mind. Bata has #een ser*ing its

customer with wide assortment o$ products $or a#out $i*e decades and

doing it success$ully. It is *ery di$$icult to identi$y the customer+s class o$

Bata !hoe "ompany. Bata touch almost *ery social class possi#le. Bata

meets the $ootwear demands o$ the higher class and lower class

simultaneously. 4owe*er to stay closer to the customers, Bata shoe

company undertakes an assessment o$ the customers at a regular inter*al.

Bata desire to $ul$ill the e*er changing customer+s needs and to do so the

outcome o$ the customer assessment plays a signi$icant role. 4ere the

similar study undertaken with a permission o$ Bata !hoe "ompany to get

the $eed#ack $rom regular customers. The /uestionnaire is taken $rom

Bata shoe company (akistan5td to conduct the sur*ey among the regular

customers. This study is analysis marketing mi) o$ Bata shoe company

commitment to ser*ice continues to this day, $rom the designers+

sketch#ook through to the per$ormance o$ our shoes on a customer+s $oot.Bata companies stri*e to supply the right products, at the right time, at the

right price, and in a manner that $ul$ill our ser*ice commitment to #oth

retail and wholesale customers.

F##t'(a" In$%st") in Pakistan

The Footwear industry in (akistan has started since the colonial era,although its modernization took place only in the late 1980s. 6uring the

British period, there was no Footwear manu$acturing $irm producing on a

mass scale in 'ast Bengal. 4owe*er a traditional cottage type Footwear

industry with limited production $acilities e)isted in a skeleton $rom in

the district towns during the time. 7arious types o$ $ootwear were

imported, mainly $rom "alcutta. $ter the partition o$ Bangle in 193,$ootwear was imported $rom est (akistan.


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hen Bata !hoe "ompany esta#lished its manu$acturing plant at Tongi in

19%&, it was the $irst manu$acturing plant to produce shoe on a large scale

in 'ast (akistan. In 19%, 'astern progressi*e shoe industries :'(!I;

esta#lished its production plant. It #egan e)porting $ootwear

to !!


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; market.

4owe*er, the country has already #een e)porting $inished leather and

di$$erent kinds o$ leather products to the o*erseas market. These products

also en=oyed considera#le demand #ecause o$ their high /uality. The main

reason $or this was the natural ad*antage o$ leather that (akistan

produces. 6espite the high /uality% o$ local animal hides #oth in raw and

$inished $rom, (akistan was still trailing #ehind 7ietnam and china in the

e)port o$ $ootwear and other leather products in the 'uropean and other

market.

OVER VIEW OF

ATA SHOE COMPANY


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OVERVIEW OF ATA SHOE COMPANY

"i(+ ,ist#") #+ ata S,#( C#-.an)

Bata !hoe "ompany was $ounded #y the $amous entrepreneur r. Tomas

Bata who #lew the wind o$ change in the $ootwear industry in 1893. The

company was started $rom zlin, "zechoslo*akia, now known as the "zech


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.!er*e 1 million customers per day

. 'mployee more then 20,000 people

.@perates 2000 retail stores

.anages a retail presence in o*er 0 countries

.


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*ulcanization (rocess;, (7", athletic $ootwear production and slush

molded $ootwear production.

W,#*(sa*in0

The Bata shoe organization :B!@; en=oys a uni/ue position in the

wholesale marketplace. -lo#al economies o$ scale ena#le B!@ plants to

o$$er /uality products at local prices, with many are operating at I!@

standards. Bata shoe organization production $acilities are world

renowned $or their commitment to /uality and customers, and ha*e

attracted production contracts $rom many international $ootwear #rands.

"an$s 1 P"#$%&t D(2(*#.-(nt

Throughout the world, the Bata A #rand distinguishes well made and well

priced $ootwear. any core articles $or Bata A #randed collections are

designed in product de*elopment centers in Italy, the Far 'ast and

"anada. 6esigners and merchandisers in Bata shoe ionization companies

#roaden the collections #y de*eloping complementary styles to re$lect

tastes, #udgets and climates within their own market. !trict /uality

controls go*ern the selection o$ materials and all production stages.

%sin(ss %nits #+ ata s,#( -.an)

Bata is operating #usiness in $i*e #usiness units such as 'urope, sia

paci$ic, 5atin merica, >orth merica, and $rica. Bata announces its

worldwide presence through these $i*e #usiness units.

%sin(ss %nits #+ ata s,#( -.an)


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W#"*$'i$( ("a0( #+ ata


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in the


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Missi#n

EIntroduction o$ a strong shoe line targeted to *arious market segments to

maintain leadership through increased market share.

Visi#n

ETo pro*ide good /uality shoes at an a$$orda#le price #y keeping in mind

the com$ort that needs to #e there and pro*iding new designs with it.

En2i"#n-(nta* Missi#n

To protect our people customers and communities and to protect our

natural en*ironment in order to help sustain human de*elopment glo#ally.

ata 6%sin(ss T).(s

Bata #usiness policy is the segmentation o$ retail outlets according to

pro$iles o$ di$$erent market segments and the introduction o$ no*el

concepts. Bata retail store are categorized into $our typesG

Cit) St#"(s

Bata city stores o$$er the ur#an customers a wide *ariety o$ current

$ashion $ootwear and accessories. There are &2 city stores in Bangladesh,

1% in 6haka metropolitan area, other in "hittagong, !ylhet, and in

ymensingh metropolitan area. These stores are esta#lished in prime

locations, and pro*ide a high le*el o$ customer ser*ice, e)clusi*e shoe

lines with complementary accessories and contemporary shopping

en*ironment are to discerning shoppers.


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Ma** ata st#"( 3&it) st#"(4

Fa-i*) St#"(s

Bata !hoe "ompany is undou#tedly the world+s leading $amily $ootwear

chain. The company o$$ers a wide assortment o$ e*ery day+s $ashion

$ootwear. The products are primarily o$ the #rand Bata. >e*ertheless *ery

care$ully selected articles $rom #oth local and international #rands are

also marketed #y the company. There are %0 $amily stores till date that

has #een success$ully operated all o*er the Bangladesh.

ata a5a"

Bata Bazar is the largest display o$ Bata+s products among all others store

concepts. It pro*ides the customer with #roadest range o$ products and

accessories possi#le. This concept was introduced in &00. They are

ideally located in power centers commercial parks and outlet centers with

easy parking $acilities. There are Bata #azars #eing operated.


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C*(a"an&( O%t*(ts

There are three "learance outlets o$ Bata !hoe "ompany where

discounted shoes are sold.

Dis%nt($ s,#(s at &*(a"an&( #%t*(ts

SWOT Ana*)sis #+ ata s,#( -.an) 3an0*a$(s,4 Lt$

St"(n0t,s:

4igh /uality products

!trong Brand image

')tensi*e product lines

!trong and mass distri#ution network

ide range o$ associated #rands

!killed management team

odern manu$acturing $acilities

(otential target market


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5oyal customers

W(akn(ss(s:

4igh price

ore emphasize on /uality rather than design

5ake o$ promotional acti*ities

5ess e$$ort to attract new customer

4igh cost structure

4igh import duties

4igh administrati*e cost

7at H ta) #arrier

O..#"t%niti(s:

ide assortment o$ products o$$ered

Better customer ser*ice

eat H clean retail outlets

Trained salesmen

T,"(ats:

7A.(89 is nsi$("($ t,( 6i00(st t,"(ats

.#t(ntia* n(' 6"an$s *ik( a) E-.#"i%-

C#%nt("+(itin0 #+ ata s,#(s in %nnt"#**($ *#&ati#ns

C#ns%-(" .("&(.ti#n "(0a"$in0 ,i0, ."i&(

Hi0, ."i&( $%( t# ,i0, ."#$%&ti#n st

Dis"%.ti#n #+ nsist(nt s%..*)

S'it&,in0 n(' 0(n("ati#n t# t"(n$) ."#$%&ts


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go*ernment is trying to de*elop Eindustry sa$ety

regulations, #asically an e$$ort to support and gi*e

ma)imum protection to industry sector to make it more sa$e

and sta#le.

'conomic

'conomic $actors are directly controlled and in$luenced #y

$inancial institutes like !tate Bank o$ (akistan, so they help

the industry in gi*ing economic soundness and pro*ide

$inancial aid to industry to sur*i*e at the time o$ crises.

@perating in num#er o$ di$$erent countries Bata has a glo#al

economic perspecti*e with $ocus on each indi*idual market.

@perating in large num#er o$ markets gi*e an edge to Bata to

learn $rom di$$erent market e)perience, so when they $ace

any *aria#le economic changes in the market they can gather

in$ormation and resources $rom all o*er the world to address

any issues. In (akistan o*erall economic conditions are not*ery good as the in$lation rate is increasing day #y day.

"urrency *ale is also decreasing at the same rate which

lowers down the E#uying power o$ consumers like

"urrency $luctuations can e/uate to higher or lower demands

$or Bata shoe which in turn a$$ect pro$ita#ility. It can also

mean a rise in costs or a drop in returns which is a clearthreat $or a company. e are holding appro)imately ???

interest rate which is among the highest in world so it makes

*ery di$$icult $or any industry like Bata to ha*e its economic

acti*ities smoothly. @ne ad*antage to Bata in this regard is

the Elowest la#or rates. t the end o$ &01 $inancial year

(akistan has the lowest industrial la#or cost among other


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countries :including *ery minimal la#or laws;, which is an

opportunity $or Bata.


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S#&ia* 1 C%*t%"a*

Social trends and the demographics are the key elements that

are taken in consideration to do #usiness in any country.

'ach country has di$$erent culture and trend #asing on their

norms and *alues. >ow people are #ecoming more health

conscious, which means more people are mo*ing towards

workouts and di$$erent games. To cater these all Bata had a

large num#er o$ product range to satis$y di$$erent segments

with di$$erent needs and demands. 5ike $emales are coming

to games and athletics more than e*er, keeping them in *iew

Bata launch a $ull range o$ Female !ports shoes :(ower;.

Brand awareness in rural areas is another pro#lem Bata is

$acing. !trong media support towards #rands awareness can

in$luence these people decisions a#out shoes.

T(&,n#*#0)

Technology is the #est weapon to win the war o$

competition in these days and Bata "ompany is a head in the

game o$ technology $ield. The Bata operates in more than 80

countries worldwide. This ena#les Bata to ha*e lots o$

e)perience and resources to draw $rom $or research and

de*elopment purposes. ccording to one o$ their departmenthead, EThe $oundation o$ the company+s growth is a deep

understanding o$ economic stimuli and customer needs, and

the a#ility to translate them into customerdesired o$$erings

through leading edge


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$ree work en*ironment. utomation is another recent goal on

which Bata is working. ll o*er the world companies are

mo*ing $rom la#or intensi*e to automated plants.

/!; A&,i(2(-(nt

In &010, Bata !hoe "o :(J; 5td wins E !uper #rands award. !upar

#rands is a uni/ue #rand not only (akistan #ut also international

renowned #rand and ha*e a good #rand image all o*er the world. In

(akistan only Bata shoe co :(J; 5td has achie*ed this awarded.

S.#ns#"

EBata was o$$icial clothing sponsor o$ the (akistan "ricket

Team

MARKETING MIX OF

ATA SHOE CO 3PK4 LTD


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Ma"k(tin0 Mi8

The -a"k(tin0 -i8 is pro#a#ly the most $amous marketing term. Its

elements are the #asic, tactical components o$ a marketing plan. lso

known as the F#%" P


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C,a"t : Ma"k(tin0 Mi8

P"#$%&t

Bata o$$ers a num#er o$ product lines to the prospecti*e consumers in the

e)isting market. Bata has truly international team whose di*ersity o$

ideas to de*elop new style $ootwear, shocks, sneaker, etc. Bata has

introduce huge product line o$ men $ootwear C shows, sandal, sneakers,

shocks, women $ootwear, kid+s $ootwear and many other types o$

$ootwear line the company is operating in the market. #out hal$ line o$

product the company imports and sells under the $ranchising. Bata also

sell ten international #rands $ootwear at their retail shop.

P"(-i%- **(&ti#n

Bata has #een deli*ering hand cra$ted /uality $ootwear o*er100 years to

maintain and #uild on heritage o$ creating high /uality, com$orta#le and

stylish shoes.

"an$sBata store carry $ollowing shoes #randsG

Hush Puppies

Weinbrenner


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Nike

Power

North Stare

Bata Comfit

Sandak

Bubble Gummers

Marie Claire

Scholl

Fi0%"( =: ata 6"an$s *#0#


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Hush Puppies

4ush puppies is the international #rand, Bata uses the $ranchising power

to supply the product in the Bangladeshi market. The target customers o$

this model are rich people. Basically it is an merican #rand.

4ush (uppies

Weinbrenner

The ein#renner shoe line is made up o$ leather shoes and #oots, style in

low, mid, and high cut. "uts or design are directly $ashion, #ut can

include materials which help to $ell com$ort in doing outdoor strong

works. The shoes are casual in style closures generally with laces andeyelets, sometimes supplemented with hooks, 6 rings and straps with

#uckles.


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Fi0%"( ;: W(in6"(nn("

Nike

>ike is a worldwide $amous and popular athletic shoe #rand. Bata carries

this #rand as a licensing. This #rand is $or a di$$erent segment o$

customers in Bangladesh. Though it is an athlete shoe #ut in

(akistanyoung generation wear it as a $ashiona#le product. The target

customer o$ this product is higher income group people.

Fi0%"( : Nik(


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Power

(ower is also an athlete shoe which is considered as the alternati*e o$

>ike. (ower shoes are cheaper than >ike shoes. The target customer o$

this shoe is middle class people.

Fi0%"( /: P#'("

Bata Comfit

"om$it has an important $eature in design and assem#ly o$ all the com$it

shoes. This #rand is $ocused on #oth com$ort and style o$ shoes. nit

ru##er, (7", ( or T


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P*a&(-(nt

Bata has a network o$ &20 retail outlets located statically in di$$erent parts

o$ the country. This e)tensi*e retail network is also supplemented #y an

e/ually e)tensi*e network o$ deports and dealers. The retail outlets are

segmented according to the pro$ile o$ customer and di$$erent market

segments. ccording to the segmentation the three di$$erent types o$

outlets are

ata Cit): The city stores incorporate spacious $loor space

allowing a com$orta#le shopping e)perience, modern interior

enriched with no*el shel*ing systems, $ittings, $i)tures and

lighting. The city stores are esta#lished in prime location o$

metropolitan city. mong the &2 city stores 1% are esta#lished in

6haka and other in ma=or #usiness area.

ata a5a": Bata Bazar holds the largest display o$ Bata+s

products consisting wide range o$ assortment. It pro*ides the

customers with #roadest range o$ products and accessories in a

di$$erent price range possi#le. But e)clusi*e #rands and products

are not #een sold here. This concept was introduced in &00.

ata Fa-i*): It is more a like a clearance outlet. ost o$ the

products which are #een sold here are in sale.

These three types o$ stores are ser*ing di$$erent segment o$ target market

and adding a new *alue in customer satis$action.

P"i&(


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Bata use price /uality leadership approach. They set the price #ased on

*alue. In some country they target high /uality niche and in some country

price sensiti*e segment. '*ery where they set the price #ased on *alue

they deli*ered.

Bata $ollow geocentric pricing techni/ues. ccording to the demographic

$eatures the local pricing $or Bata shoes $or men, women and children is

gi*en #ellowG

"ategory 4ighest KB6TL 5owest KB6TL

en 6ress %990 990

en !ummer 3390 220

omen 6ress 2390 190

omen !ummer &390 %90

thletic $ootwear 190 1&000

"hildren $ootwear &90 1&90

!andakM!andals 1&0 90

(ricing o$ Bata !hoes

P"#-#ti#n


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Bata has put less e$$ort in promoting their products. They think the &20

retail outlet throughout the country helps Bata to do integral #rand

marketing. @ther then that they are the o$$icial clothing sponsor o$

(akistan"ricket Team. 4owe*er Bangladesh, Bata has done many

promotional acti*ities likeG

T7 campaign

(rint ad*ertisement

@utdoor :Bill#oard;

e# #ased ' $lyer, !!

mong all those promotional acti*ities they ha*e emphasized on outdoor

ad*ertising in Bangladesh.

(romotion is the #usiness o$ communicating with customers. It will pro*ide

in$ormation that will assist them in making a decision to purchase a

product or ser*ice. The razzmatazz, pace and creati*ity o$ some

promotional acti*ities are almost alien to normal #usiness acti*ities.
http://www.thetimes100.co.uk/theory/theory--dealing-with-customers--411.phphttp://www.thetimes100.co.uk/theory/theory--dealing-with-customers--411.php


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R(--(n$ati#ns

From the research it is e*ident that Bata has a large loyal customer+s #ase

throughout 6haka city who are more or less satis$ied with Bata+s products

and ser*ices. For now it seems that word o$ mouth and #rand recognition

are in a /uite secure position. 4owe*er Bata can take some steps to

impro*e their customer relationship and to attract new potential

customers.

Bata $ails to re$lect up to date $ashion shoes $or its customers.

"ustomers think that other competitors always #ring $ashion shoes

$or the customers. I$ Bata can #ring up to date products in the

market place, the sales return o$ the company undou#tedly

increased into dou#le. It is also recommended that Bata+s market

share will increase #y up to date $ashion shoes.

Bata has good #rand awareness #ut their lack o$ promotional

acti*ity causes many o$ the new o$$ering unnoticed. To o*ercome

this di$$iculty Bata can introduce #rochures :direct mail;, news

paper ad regarding their new arri*als and price discount scheme.

C#n&*%si#n

Bata !hoe "ompany is the market leader in the $ootwear industry

since its operation in Bangladesh. The name Bata achie*e such a position

in the customer+s mind that whene*er they heard the name o$ Bata, a

$ootwear with high /uality comes in to their mind.

Report on Marketing Mix of Bata Shoe Company

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Transcript of Report on Marketing Mix of Bata Shoe Company