Post on 09-Apr-2020
transcript
1.1 The Bata Heritage
“Our success is built on our legacy of values and beliefs”
"Thomas G. Bata,
Chairman and Grandson of Founder"
Every legacy of success begins somewhere. For the Bata Shoe Company, that place was the small riverside town of Zlin, Czechoslovakia, where three Bata siblings gathered a small inheritance from their mother, and officially established the T. & A. Bata Shoe Company. It was the year 1894 and a remarkable tale of enterprise had begun.
Founder Tomas Bata was a visionary dedicated to serving the needs of the people. In 1904,
Bata introduced mechanization and mass production to shoemaking and created the
"Batovka" - a working class shoe remarkable in its simplicity and style, yet lightweight and
affordable. The Bata
name quickly became
synonymous with
quality and value, and in
just over two decades
Bata was selling 2
million pairs of shoes a
year, and exports
skyrocketed.
Throughout the early 1900s, even as world war, the Great Depression and Communism
loomed, Bata continued to prosper. In 1931 it began to build factories, and entire towns,
outside of Czechoslovakia. It wasn't long before Bata was recognized as an international
brand known for its unmatched selection of styles. By the end of the 1930s, Bata operated in
over three dozen countries.
Just as the 20th century progressed, so did Bata's international reach. When Communist
governments nationalized all Bata companies in Eastern Europe, Bata persevered by
rebuilding itself from the remaining entities located outside Eastern Europe.
Further expanding the company's international umbrella, Thomas J. Bata, the founder's son,
moved from Czechoslovakia to Canada with over 100 families and established the Bata Shoe
Company of Canada. Families around the globe relied on Bata to supply them with sensibly
priced shoes that met their needs and exceeded their wishes. By mid-century, Bata's superior
1 | P a g ewww.AssignmentPoint.com
product earned the trust and confidence of millions and Bata was positioned as the world's
leading footwear exporter.
As the 20th century came to a close, Bata had been building relationships with generations of
families for over 100 years. Thomas G. Bata, the founder's grandson, remained committed to
that tradition in the emerging global marketplace. In a bold move, he replaced large,
centralized factories with regional production facilities guided by four "meaningful business
units" (MBUs), each having the flexibility and independence to produce footwear that
responds to the unique needs of its region. As a result, Bata is honored to be a local company
in every country it serves. It is with pride that the Bata Company of today maintains close to
5,000 international retail locations and services over one million customers per day. From its
simple start over 118 years ago, Bata has grown
into a trusted global company that offers
fashionable and affordable footwear to every
member of the family.
We will grow through the 21st century by
investing our resources in innovative comfort
technology, remaining on the cutting edge of
style, and ensuring quality and affordability.
Now as then, we believe our success is a result
of our commitment to our customers, and we'll
continue to look to the future by reading our
past.
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, a footwear with high quality comes into their mind. Bata has
been serving its customers with wide assortments of products for about five decades and
doing it successfully. It is very difficult to identify the customers’ class of Bata Shoe
Company. Bata touches almost every 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 desires 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
2 | P a g ewww.AssignmentPoint.com
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 the analysis of customer satisfaction of Bata Shoe
Company which will help to analyze the customers’ level of satisfaction with Bata products
and stores. This study will try to compare Bata with other competitors in footwear industry. It
will help to get the knowledge of customers’ overall shopping experience at Bata shoe stores.
1.2 Footwear industry in BangladeshThe 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 form in the district towns during that time. Various types of footwear were imported,
mainly from Calcutta. After the partition of Bengal in 1947, foot wears were imported from
West Pakistan.
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. 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. New 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 manufacturers on the basis of both the
current growth in shipments and the increased production capacity in factories under
construction. If their assessment is correct, in a 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.
3 | P a g ewww.AssignmentPoint.com
1.3 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 for the
sake of expanding the country’s export base and thereby reach a sustainable status for the
country’s export trade.
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.
However, the country has already been exporting finished leather and different kinds of
leather products to the overseas markets. 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 quality of local animal hides both in raw and
finished form, Bangladesh was still trailing behind Vietnam and China in the export of
footwear and other leather products in the European and other markets.
1.4 Manufacturing Hub
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.
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 the 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 construction 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 months back. The first part of the complex will go
4 | P a g ewww.AssignmentPoint.com
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-
Adeichi 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.
1.5 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 (LGFMEAB). 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 competitor, 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
four months of the 2010 fiscal year there has been $98 million worth of exports, a 65 per cent
increase from the same period last year. Taking this rate of growth into account, shoe
industry executives estimate that the current 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. Orders 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-priced but quality shoes, which have now found its way in to key markets in EU
and Japan.
5 | P a g ewww.AssignmentPoint.com
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.
2.0 Brief History of Bata Shoe CompanyBata 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 onwards 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 depots and dealers.
More than 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.
Bata’s website (2010) mentioned in BATA Today:
6 | P a g ewww.AssignmentPoint.com
Bata Today
Serves 1 million customers per day
Employs more than 50,000 people
Operates 5000 retail stores
Manages a retail presence in over 70 countries
Runs 27 production facilities across 20 countries
2.1 Bata BusinessBata 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 consumer tastes and needs. Each store features 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 become a world leader in footwear.
Manufacturing
Tomas Bata’s revolutionary business concept was to industrialize the shoemaking 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 years. 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.
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
Organization 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.
7 | P a g ewww.AssignmentPoint.com
2.2 Business Units of Bata Shoe Company worldwide
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.
2.3 Worldwide Coverage of Bata Shoe Company
Red zones have already been entered by Bata Shoe Organization.
Figure 1: Business Units of Bata Shoe Company
Figure 2: Worldwide coverage of Bata
8 | P a g ewww.AssignmentPoint.com
2.4 Bata Shoe Company (Bangladesh) Ltd.
Bata Shoe Organization started its operation in Bangladesh in 1962. The company was incorporated in 1972. 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 110000 pairs of shoes daily. It has a modem 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 both 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 both workers and the locality.
Fashion would never be complete without a well designed pair of shoes. This marketing insight has prompted Bata to introduce a number of designers’ collections 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 shoes have been targeted through development of the Power brand. Uncompromising quality with striking designs have put Bata shoes in a key position to appeal to different segments of consumers.
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 Stores, are adding a new level of consumer satisfaction. The City Stores incorporate spacious floor space allowing a comfortable shopping experience, modem 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
9 | P a g ewww.AssignmentPoint.com
sports sponsorships and disabled persons to addressing environmental concerns, scholarship
programs, charity contributions 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, Comilla and Chittagong division selling shoes from door to
door under its Rural Sales Program.
Since its 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. 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 through maintaining the quality. In recent times Bata Bangladesh has
launched more than 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.
2.5 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 stores 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.
Customer service center. Bata Shoe Company (Bangladesh) Ltd has a customer
service centre and the contact address is: Phone: +8802 9800501-5 Ext: 209
10 | P a g ewww.AssignmentPoint.com
3.0 Mission & VisionBata Shoe Company has been successfully running for years with a mission and vision at the
heart of all its operations.
3.1 Mission
“Introduction of a strong shoe line targeted to various market segments to maintain leadership
through increased market share.”
3.2 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.”
Figure 3: Factories of Bata Shoe Company (Bangladesh) Ltd.
Dhamrai Factory Tongi Factory
3.3 Management of Bata Shoe Company (Bangladesh) Ltd.
Table: Management of Bata Shoe Company (Bangladesh) Ltd.
Name Designation
Muhammad Qayyum Managing Director
Yee Siew NG Finance Director
M. Habibur Rahman Head of Human Resource
Minhaz Ahmed Chowdhury Production Manager
Qayyum Khan Mahbub Purchase Manager
Ruhul Amin Molla Non Retail Sales Manager
Carlos Arturo Zuluaga Sanchez Product Development Manager
11 | P a g ewww.AssignmentPoint.com
Omar Faisal Chowdhury Logistic Manager
Bishwajit Roy Retail Manager
Iraz Hasan Siddiqui Merchandising Manager
3.4 Organogram of Bata Shoe Company (Bangladesh) Ltd.
3.5 Bata Business TypesBata 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, others 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 environments are to discerning
shoppers.
12 | P a g ewww.AssignmentPoint.com
Company Manager
CFoO
Marketing Retail Wholesale Purchase Production Merchandising Product Dev H.R
A/C VAT Audit MIS
Depot
DPS/RWD AUB LAB CDC
Distribution
City Central East/West
Store Store Store
Figure 4: Bashundhara Mall Bata Store (city store)
Family Stores
Bata Shoe Company is undoubtedly the world’s leading family footwear chain. The company
offers a wide assortment of everyday’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.
13 | P a g ewww.AssignmentPoint.com
Bata Bazar
Bata Bazar is the largest display of Bata’s products among all others store concepts. It
provides the customers 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 3 Clearance outlets of Bata Shoe Company where discounted shoes are sold.
Figure 6: Discounted shoes at clearance outlet
14 | P a g ewww.AssignmentPoint.com
3.6 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 bands
Skilled management employees
Modern manufacturing facilities
Potential target market
Weaknesses
High Price
More emphasize on quality rather than design
Lack of promotional activities
Less effort to attract new customers
High cost structure
High import duties
High administrative cost
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
3.7 Current Marketing MixProduct
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 foot wear,
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.
Premium Collection
15 | P a g ewww.AssignmentPoint.com
4ta has been delivering hand-crafted quality footwear over 100 years to maintain and build on
heritage of creating high quality, comfortable and stylish shoes.
Brands
Bata stores carry following shoe brands:
Ambassador
Bata
B’First
Babby Bubble
Bata Light and Easy
Hush Puppies
Weinbrenner
Marie Claire
Bata Industrial
Bata and I
Nike
Power
North-Star
Bata Comfit
Sandak
Bubble Gummers
Scholl
Pata Pata
Bata Brands:
16 | P a g ewww.AssignmentPoint.com
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
17 | P a g ewww.AssignmentPoint.com
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 feel 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.
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.
18 | P a g ewww.AssignmentPoint.com
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.
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.
19 | P a g ewww.AssignmentPoint.com
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.
Sandak:
Sandak is 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.
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 old that assure the healthy growth of a child’s foot.
20 | P a g ewww.AssignmentPoint.com
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.
21 | P a g ewww.AssignmentPoint.com
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
is the trademark owner of Marie Claire for shoes worldwide (except in Japan and Korea).
Bata Industrials:
Footwear beyond Safety Bata Industrials is a specialized division of the Bata Group
producing industrial and work-related footwear, hosiery and accessories.
Scholl:
Scholl is a female brand which is focused for the school going girls.
22 | P a g ewww.AssignmentPoint.com
Placement (Location)
Bata has a network of 242 retail outlets located strategically in different parts of the country
this extensive retail network is also supplemented by an equally extensive network of depots
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 decor 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 others in major business area.
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.
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.
Everywhere 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:
23 | P a g ewww.AssignmentPoint.com
Table: Pricing of Bata Shoes
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 242 retail outlet
throughout the country helps Bata to do integral brand marketing. Other than that they are the
official clothing sponsor of Bangladesh Cricket team. However Bangladesh, Bata has done
many promotional activities like:
TVC
Electronic & Print Media.
Fashion show and several contest
Social Media like Face book , Twitter etc
Web based E-flyer , E-mail
Banners, Show cards , X- banners ,
Among all those promotional activities they have emphasized on outdoor advertising in
Bangladesh.
24 | P a g ewww.AssignmentPoint.com
4.0 RESEARCH MECHANISM
4.1 IntroductionFootwear 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
markets. 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. 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.
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 processes 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 fulfils 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 stay closer to the customers and
to fulfill the ever changing customer’s needs, the customer assessment plays a significant
role. So, the research is on customer satisfaction assessment in footwear industry in
Bangladesh based on Bata shoe company Bangladesh ltd.
25 | P a g ewww.AssignmentPoint.com
4.2 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 heard the name of Bata, a footwear with high quality comes into their mind. Bata has
been serving its customers with wide assortments of products for about five decades and
doing it successfully. It is very difficult to identify the customers’ class of Bata Shoe
Company. Bata touches almost every 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
desires 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 the analysis of customer satisfaction of Bata Shoe
Company which will help to analyze the customers’ level of satisfaction with Bata products
and stores. This study will try to compare Bata with other competitors in footwear industry. It
will help to get the knowledge of customers’ overall shopping experience at Bata shoe stores.
4.3 Origin of the ReportCustomer satisfaction analysis evaluates customers’ attitude and perception towards product
of a company. Bata Shoe Company, the largest footwear manufacturer and marketer in
Bangladesh conducts an assessment of customers’ satisfaction in a regular interval. The
purpose of this study is to measure the satisfaction level of the customers of the company.
Due to the entrance of new competitors, this assessment program has become an important
tool to know the market condition, customer’s attitude towards competitors” products,
customer shopping behavior and experience at Bata store. In this research researcher try to
analyze the customer satisfaction level and give necessary recommendations.
4.4 Management ProblemSatisfying customers are the only way to stay competitive in today’s marketplace. The
balancing act between what customers want and what company can provide must be
optimized in order to maximize company’s long-term profits. Bata Shoe Company
26 | P a g ewww.AssignmentPoint.com
(Bangladesh) Ltd already is in a good position in the consumer mind but by understanding
the customer satisfaction level; it will help the company to exceed the present level of
customer satisfaction. The management currently wants to have aspiration of knowledge of
the customer satisfaction level of Bata footwear users, and how to improve the level of
customer satisfaction. That is why the researcher is intended to conduct the research on
customer satisfaction assessment of footwear industry in Bangladesh based on Bata Shoe
Company (BD) Ltd.
4.5 Research ProblemTo stay closer to the customers Bata Shoe Company (BD) Ltd undertakes an assessment of
the customers at a regular interval. Bata desires to fulfill the ever changing customer’s needs,
and to do so the outcome of the customer satisfaction assessment plays an important part. To
analyze the impact of Bata’s marketing tactics have on its customers and whether these
tactics are effective or not are the major concerns. To assess what level of customer
satisfaction, loyalty and awareness they have can help to design future strategies to retain
existing customers or to attract and obtain new ones. For this study the research problems are
as follows:
To find out the market prospect or potential of Bata Shoe Company (Bangladesh) Ltd.
To determine the customer satisfaction level of Bata Shoe’s Customers.
To identify the problem and give necessary recommendation to ensure the customer satisfaction in order to retain existing customer and to attract new customer.
4.6 Problem statementsTo 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. The
company can take immediate action if customers needs identify clearly. Though Bata Shoe
Company has been running successfully over the years, as a member of an ever growing
footwear industry, it also has to understand the customers’ mind to take corrective measures
to improve the satisfaction level toward Bata shoe stores and Bata products. To stay at top in
this competitive market, continually shifting customer’s needs and requirements are required
to address and the problems related to customer satisfaction is necessary to assess. The
27 | P a g ewww.AssignmentPoint.com
statement of the problem is “Customer Satisfaction Assessment of Footwear Industry in
Bangladesh: A Study Based on Bata Shoe Company (Bangladesh) Ltd.”
4.7 Research Objectives
The broad objective of the research is to assess the Customer Satisfaction of footwear
Industry in Bangladesh focusing on Bata Shoe Company (Bangladesh) Ltd. This has been
broken into following specific objectives:
4.7.1 Specific Objective
To examine the current state of Bata Shoe Company (Bangladesh) ltd in the market.
To analyze the current state of Bata shoe company (BD) Ltd and Bata Brands in
customers’ mind (TOM).
To analyze the impact of Convenient Store Location in customers’ mind.
To analyze the impact of Quality of shoes in customers’ mind.
To analyze the impact of Comfort of shoes in customers’ mind.
To analyze the impact of Knowledge of the staff in customers’ mind.
To analyze the impact of Fashionable style offered by the store in customers’ mind.
To analyze the impact of Brands of shoe offered by the store in customers’ mind
To analyze the impact of Selection of colors, style and sizes of shoes and handbags
in customers’ mind.
To analyze the impact of Advertising in customers’ mind
To analyze the impact of Layout and design of store in customers’ mind
To identify customer satisfaction level of Bata and compare Bata with other store.
28 | P a g ewww.AssignmentPoint.com
4.8 Scope
To achieve the objective it is needed to collect data from customers within the country. But
for time, cost, and other limitations only the Dhaka city and is surroundings are considered
for collecting data. For achieving the objectives, the study will be focused on the quality,
price, comfort ability, and other criteria of Bata shoes as well as the competitive position with
Apex, Jennys, Bay and other competitors. While doing so it will also identify the limitations
and the weaknesses of the issue. The researcher will be focusing on the customer satisfaction
level for Bata Shoe Company (to what extent they are satisfied) concentrating Dhaka city.
4.9 LimitationsAdequate efforts have been taken to accomplish the research according to the objectives. But
as the research is both time and cost consuming therefore it was not possible to cover more
additional areas, which would obviously give better result.
The type of the study required a detail interview of consumer at market place.
Thereby a tremendous difficulty was faced in getting access to them as they are very
busy. Many times the respondents were found after answering few questions left the
interview, which resulted in discontinuity in interview and the wastage of time and
effort. Also, the interview was conducted only on the footwear customers of Dhaka
city for the time limits of internship periods.
The respondents’ lack of understanding of the purpose of the study was a major
limitation when conducting the questionnaire survey. It had to explain the nature of
the study and the purpose of a number of questions several times to a number of
customers.
In spite of prior sincerity, some mistakes can be occurred. The responsibilities are admitted
for those inadvertent mistakes, if there will any. Also adequate efforts have been taken to
accomplish the project according to the objectives.
4.10 Benefits of the StudyTo 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
29 | P a g ewww.AssignmentPoint.com
customers want from company. It will provide information about customer perception about
Bata’s quality, price, customer service etc. This study can help Bata understand what level of
consumer satisfaction and awareness they have. This information can help to design future
strategies to retain existing customers or to attract and obtain new ones. Finally, this research
study can be considered a general guideline for other organizations in the industry who hope
to do research on customer satisfaction and factors that affect customer satisfaction.
5.0 Literature ReviewCustomer Satisfaction
“Everyone knows what satisfaction is, until asked to give a definition. Then, it seems, nobody
knows.” This quote from Richard L. Oliver (1977), respected expert and long time writer and
researcher on the topic of customer satisfaction, expresses the challenge of defining this most
basic of customer concept. Building from previous definitions, Oliver offers his own formal
definition: Satisfaction is the consumer’s fulfillment response. It is a judgment that a product
or service feature, or the product or service itself, provides a pleasurable level of consumption
related fulfillment.
The word satisfaction first appeared in English during the thirteenth century. The word
satisfaction itself is derived from the Latin satis (meaning enough) and the Latin ending -
faction (from the Latin facere - to do/make). Early usage centered on satisfaction being some
sort of release from wrong doing. Later citing of the word emphasis satisfaction as a “release
from uncertainty” (The Oxford Library of Words and Phrases, 1993). Modern usage of the
word has tended to be much broader, and satisfaction is clearly related to other words such as
satisfactory (adequate), satisfy (make pleased or contented) and satiation (enough). The
difficulty faced when trying to define any word is that the meaning often depends on the
context in which the word is used. In a marketing context, satisfaction is used to have a more
“specific” meaning. It appears that there are two basic approaches adopted in attempting to
define the concept of customer satisfaction. Satisfaction can be viewed as an outcome of a
consumption activity or experience; however, it is also represented as a process.
Currently, the most widely adopted description of customer satisfaction is that of a process;
an evaluation between what was received and what was expected (Oliver, 1977, 1981; Olson
and Dover, 1979; Tse and Wilton, 1988). By looking at satisfaction as a process, these
definitions concentrate on the antecedents to satisfaction rather than satisfaction itself.
Consequently, much research effort has been directed at understanding the cognitive
30 | P a g ewww.AssignmentPoint.com
processes involved in satisfaction evaluations. This strand of theory appears to have origins in
discrepancy theory (Porter, 1961) and a number of authors have, over the years, used some
form of comparison to model satisfaction. Early contributions include Contrast Theory
(Cardozo, 1965; Howard and Sheth, 1969), which supposed that consumers would exaggerate
any contrasts between expectations and product evaluations. This was developed into
assimilation-contrast theory (Anderson, 1973).
Many studies support the occurrence of assimilation (Olshavsky and Miller, 1972; Olson and
Dover, 1979). Customer satisfaction, a business term, is a measure of how products and
services supplied by a company meets or surpass customer expectation. It is seen as a key
performance indicator within business and is part of the four perspectives of a Balanced
Scorecard. In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy. There is a substantial body of empirical literature that establishes the
benefits of customer satisfaction for firms.
A further point concerns expectations that are defined differently in the satisfaction and
quality literature. In the satisfaction literature “expectations reflect anticipated performance”
(Churchill and Suprenant, 1982, p. 492) made by the customer about the levels of
performance during a transaction. On the other hand, in the service quality literature,
expectations are conceptualized as a normative standard of future wants (Boulding, Kaira,
Staelin & Zeithami, 1993). These normative or ideal standards represent enduring wants and
needs that remain unaffected by the full range of marketing and competitive factors.
Normative expectations are therefore more stable and can be thought of as representing the
service the market oriented provider must constantly strive to offer (ZeIthaml, Berry &
Parasurama, 1993).
Assuming that the customer is capable of evaluating the service performance, the result is
compared to expectation prior to purchase or consumption (Oliver, 1980). In the past,
corporation did not pay much attention to customer satisfaction but were focused more on
attracting new customers to expand their market share. Now, due to lower sales resulting
from product maturity, corporations are turning around to stabilizing their existing customers
to ensure their market share (Dhabolkar & Thorpe, 1994). Thus the concept of customer
satisfaction is under further scrutiny. For the current study, the definition put forward by
Oliver will be the construct, as it is the most appropriate for the selected study.
31 | P a g ewww.AssignmentPoint.com
“It’s not good enough to go to your customer after you have sold them the product and ask
them how satisfied they were. What you need to do is go to your customers before you
develop the product or service and find out what is important to them.” (Arnold
Weimerskirch, November 1997) As this comment illustrates, satisfying customers begins the
moment an organization decides to market a product, a service, or a product and service
bundle. This article describes a measurement process for assessing and predicting customer
reactions to the features included in the product/service bundle. Efforts to improve customer
satisfaction often lead companies to the conclusion that products or services need to be
redesigned, because no lesser action truly satisfies. Further, companies are motivated to
introduce new products and services by changes in available technology, by competitor
initiatives, and by the classic business desire to reap the profits of an effective differentiation
strategy.
Measuring Customer Satisfaction:
Organizations are increasingly interested in retaining existing customers while targeting on
new customers; measuring customer satisfaction provides an indication of how successful the
organization is at providing products and/or services to the marketplace.
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of
the state of satisfaction will vary from person to person and product/service to
product/service. The stat of satisfaction depends on a number of both psychological and
physical variables which correlate with satisfaction behaviors such as return and recommend
rate. The level of satisfaction can also vary depending on other options the customer may
have and other products against which the customer can compare the organization’s products.
Because satisfaction is basically a psychological state, care should be taken in the effort of
quantitative measurement, although a large quantity of research in this area has recently been
developed. Work done by Berry, Brodeur between 1900 and 1998 defined ten ‘Quality
Values’ which influence satisfaction behavior, further expanded by Berry in 2002 and know
as the ten domains of satisfaction. These ten domains of satisfaction include:
32 | P a g ewww.AssignmentPoint.com
Quality
Value
Timeliness
Efficiency
Ease of Access
Environment
Inter-departmental
Teamwork
Front line Service Behaviors and
Commitment to the Customer and Innovation.
Customer satisfaction survey is a widely used method in footwear industry (Cohen et al.
2008, Lombarts et al. 2009). Customer satisfaction measurement is fundamental to effective
delivery of services (Atila and Mike, 2009). Bata Shoe Company conducts this assessment
package internationally to ensure the better service to the customers. Basically this
assessment package has been conducting in Bangladesh for the last few years using the same
process which is conducted internationally. Customer assessment package measures the
customer satisfaction on Bata products. The end-user of Bata products are mainly the
respondents of this research.
6.0 Research Methodology
6.1 Types of ResearchThis research is a quantitative exploratory research, as it is an initial research conducted to
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. Then conclusive
research through qualitative methods has been carried out.
6.2 Basic Research MethodThis section has described the basic research plan of the study. It has specified all the
procedure necessary to solve the research questions and hypothesis. The basic research
33 | P a g ewww.AssignmentPoint.com
method in this research will be survey method with a formatted online questionnaire provided
from Bata Regional Head office. An observation method will not produce expected result. As
experiment study is costly so it will not be undertaken.
6.3 Conceptual FrameworkCustomer assessment package is conducted by Bata considering some factors relevant to
customer satisfaction. These are considered as independent variables whereas customer
satisfaction is dependent variable. The independent variables are product price, product
quality, product design, store design, salesmen behavior, advertisement, competitors
marketing policy, seasonal variation, product availability, brand loyalty etc. These factors
influence the satisfaction level of customers at Bata and Bata products. From the comparison
of different attributes or features the customer satisfaction towards Bata will be assessed.
6.4 Model DevelopmentGraphical Model:
Independent Variables Dependent Variable
34 | P a g ewww.AssignmentPoint.com
Store location
Product quality
Comfort of shoes
Product price
Brands of shoe
Product design, color, & style
Knowledge of the staff
Helpfulness of the staff
Promptness of service
Fashionable style
Advertisement
Customer Satisfaction
6.5 Type of data
This research will not be focusing on any secondary data, as no such preview research has
been conducted in context of Customer Satisfaction Assessment of Bata Shoe Company
(Bangladesh) Ltd. This research will work with only primary data based on exit interview.
6.6 Data Collection Procedure
Data is collected through survey method. For the survey method, personal interview was
conducted. A questionnaire is kept in hand of the interviewer to aid the interview process. A
personal interview is a form of direct communication in which an interviewer asks
respondents questions in a face-to-face situation. Verbal explanations were provided to the
respondents who faced any problems answering the questionnaires. Informal interviews were
also held with Customers. After collecting primary data we uploaded the real time data into
the customer satisfaction assessment software to generate the analysis.
6.7 Sampling Plan for the Research
Sampling is an important component for a research design. It is the process of using a small
number of parts of a larger population to make conclusions about the total population. For
this research the following steps in the sampling design process was followed:
Target population
Sampling frame
Sampling Technique
Sample size and
Execution
6.7.1 Target Population
The target population of this research is Footwear customers of Bata. Population is a
collection of all possible individuals, objects, or measurements of interest. It is a set of
entities concerning which statistical inferences are to be drawn, often based on a random
sampling taken from the population. All consumers in the country are the concern population.
But due to time and resource constraints the consumers in Dhaka city are considered as the
population.
35 | P a g ewww.AssignmentPoint.com
6.7.2 Sampling Frame
There is no such sample frame is available for this research. Bata customers of all ages and
sexes were considered.
6.7.3 Sampling Method
The study consists of footwear customers of Dhaka city and its surroundings. Simple random
sampling technique was used for sampling.
6.7.4 Sample Size
The sample size of a statistical sample is the number of observations that constitute it. It is
typically denoted by n, a positive integer (natural number). Typically, all else being equal, a
larger sample size leads to increased precision in estimates of various properties of the
population. Here in this research the sample size is n = 269 but for some limitations (time,
recourses, etc.) and convenience, total number of 269 respondents’ data was collected. The
survey was conducted from 11 stores of Bata outlets in Dhaka city and its surroundings.
6.7.5 Executions
Questionnaire survey according to sampling plan through personal interviews with randomly
selected sampling units was conducted. However verbal explanations were provided to the
respondents who faced any problems answering some questions from the questionnaires.
Later Data were uploaded into the customer satisfaction assessment software through real
time data uploading. This was connected through real time online connection with regional
head office of Bata Shoe Organization.
6.7.6 Data Analysis and Interpretation
After collection all the primary data, those are analyzed following ways:
Statistical Analysis: The primary data from the questionnaire is placed in the customer
assessment software through real time data inputting. The analysis was produced
automatically through Chi Square test, Correlation analysis, Frequency distribution, pie chart,
bar graph are used to analyze data. All this analysis is done through the use of SPSS for
Windows software. These analysis is done through the customer satisfaction assessment
software from the regional headquarter based on the exit interview. The software is connected
36 | P a g ewww.AssignmentPoint.com
with the regional head office through real time data input from the different city and family
stores in Bangladesh.
7.0 Analysis and Data interpretation based on Exit Interview Survey Location of the surveyed stores:
The research was conducted at several stores of Bata shoe company (Bangladesh) Ltd. Stores
are including 4 city stores and 7 family stores. The following is the list of stores:
Gulshan 2 City Store.
Farmgate Family Store.
Mirpur Family Store (Beside prince plaza).
Bata Factory Gate Family Store.
Rapa plaza city store.
Balaka 1, Family Store, New market.
6/B, B Gulisthan Family Store.
Shawrapara , Family Store .
Uttara south, City Store.
7.1 Gender of the respondents:
The sample size was 269 out of the sample size male are 144 and female are 125 .this signifies that out of total sample size 53% respondent is male and 47% respondent are female .
37 | P a g ewww.AssignmentPoint.com
7.2 Market positioning of Bata Shoe Company (Bangladesh) Ltd:
The market positioning of Bata shoe company (BD) Ltd. is very much higher according the graphical findings of the research. The sample size was 269 between the sample size 25 customers chose Bata as established competitor and the rest 244 customers choose Bata as a market leader. So we can conclude customers consider Bata Shoe Company (BD) as a market leader in the country.
7.3 Frequency of store refurbishment:
The frequency of store refurbishment is to ensure the level of activity of renovation department of Bata Shoe Company (BD) ltd. Because renovation contribute to ensure the customer satisfaction level. If the store is renovated frequently it improves the stores
38 | P a g ewww.AssignmentPoint.com
appearance to customers and customers are attracted to visit and buy the shoes. This pie chart shows that almost 99% stores are refurbished within 0 to 2 years and the rest 1% stores are refurbished within 2 to 3 years. This means almost 100 % stores are refurbished every year. So it ensures the customer satisfaction because customers always want upgration as well as modern designs and outlook. So it means Bata shoe company (BD) Ltd is concerned about the frequent renovation of the stores.
7.4 Top of Mind Awareness (TOMA)
Related Question
When you think of footwear store chains, which are the first three that come to mind?
The bar graph have shown the top of mind awareness in a customers mind when a customer
think of a footwear store.
Bata is considered as the 1st preference by the customer because out of 81% customer out of
100% respondent (187 customers out of 230) choose Bata as TOM 1, 13% customer out of
the 100% respondent choose Bata as TOM 2 and 4% customer choose Bata as TOM 3.so it
means that customers are intended to consider Bata as the market leader as the higher
percentage of customer mention as TOM 1.
39 | P a g ewww.AssignmentPoint.com
Apex is considered as the 2nd preference by the respondents’18% customer consider apex as
TOM 1 (16 customers out of 92 customers) , 76% customer consider apex as TOM 2 ( 70
customers out of 92 customers ), 7% customer mentioned apex as TOM 3 ( 6 customers out
of 92 customers ) .
Bay Emporium is considered as the 3rd preference by the respondents 11% customer consider
Bay as TOM 2, 70 % customer consider Bay as TOM 3. There is 0% customers’ response
regarding Bay that it is not in TOM 1 position.
Jennys is considered as the one of the upcoming footwear retail brand in the country. 10% customer consider jennys as TOM 1, 26% customer consider jennys as TOM 2 , 63% customer consider jennys as TOM 3 .Along with these there is also a high percentage of customer willingness to buy from outside market as well as from unorganized market like elephant road, polwel market, various local markets in different areas and other foreign imported merchandise etc.
7.5 How did you hear about Bata shoe company (BD) Ltd:
Customer has come to know about Bata shoe company (BD) Ltd through various ways. Bata
is an international brand and it has its own strategies to draw the attention of its customers.
This bar graph shows that 1% customer mention that they hear about Bata brand through its
40 | P a g ewww.AssignmentPoint.com
advertising, 34.6% customer mention that they know about Bata from word of mouth like
peer influence, 64% customer mention that they know about Bata from their own
experience .so we can conclude that higher percentage of customer use Bata footwear and
their experience is positive about Bata and they are the loyal customer of Bata shoe company
(BD) Ltb. This is a good sign of customer satisfaction level also.
7.6 How many times customers visited the footwear stores in the last 6 months:
How many times customer visited the footwear retail chain stores means that customers visit
stores frequently on the basis of willingness to buy and customers’ perception and liking
towards the store of a particular brand. This bar graph shows that there is a higher trend of
customers’ to visit Bata stores rather than other competitors’. Customer visit Bata stores more
frequently. That is why we can conclude that customers are satisfied with the stores of Bata
Shoe Company (BD) ltd.
7.7 How many pairs of shoes bought by a customer in the past 6 months:
41 | P a g ewww.AssignmentPoint.com
How many shoes are bought by a customer in the last 6 months signifies that customers’ buying pattern as well as their buying behavior in the last six months to assume the customers frequency to buy. According to this pie chart 8.3% customer did not buy any pair of shoe, 33.5% customer bought 1 pair of shoe, 26.5% customer bought 2 pairs of shoe in the last six months, 12.2% customer bought 3 pairs of shoe in the last six months, 6.5% customer bought 4 pairs of shoe in the last six months , 4.3% customer bought 5 pairs of shoes in the last six months , 1.7% customer bought 6 pairs of shoe in the last six months ,1.7% customer bought 7 pairs of shoe in the last six months ,1 % customer bought around 8 to 9 pairs of shoe in the last six months , 3.5% customer bought 10 pairs of shoe in the last six months . So we can conclude that the higher percentage in the pie chart meaning that customers’ buying pattern is positive and better than the competitors.
7.8 How much customers want to spend on an average:
42 | P a g ewww.AssignmentPoint.com
This bar graph shows the how much customer is willing to buy on an average. This is very important to know the level of customers’ intention to spend to buy a pair of shoe. The sample size is 269 out of the sample size 10 respondents mention they want to spend BDT 500 on an average for a pair of shoe, 18 respondents mention that they want to spend BDT 600 to 700 on an average for a pair of shoe, 22 respondents mention they want to spend BDT 800 on an average, 42 respondents mention they want to spend BDT 1000 on an average to buy a pair of shoe, 39 respondents mention they can spend BDT 1200 for a pair of shoe , 36 respondents mention that they want to spend BDT 1400 to buy a pair of shoe , 29 respondents mention that they want to spend BDT 1600 on an average for a pair of shoe , 24 respondents mention that they are willing to buy BDT 1800 for a pair of shoe , 10 respondents mention that they are willing to spend BDT 3000 on an average for a pair of shoe
7.9 Factors to decide which footwear brand to buy:
43 | P a g ewww.AssignmentPoint.com
Factors to decide which footwear to buy because this is one of the most important factors
from where customer should buy. This bar graph determines the factors which a customer
want to judge before buying the footwear from any retail footwear store. According to this
bar graph it is measured by five point scale where 1 is poor , 2 is fair , 3 is average, 4 is good
, 5 is excellent . So long lastingness of footwear, comfort of footwear, value for money,
trendy and fashionable design and international footwear brand these variables are above on
the level 4 scales so all of the variables have passed the level of goodness to excellence.
7.10 Brands customers purchase frequently:
44 | P a g ewww.AssignmentPoint.com
This bar graph signifies which Bata brand is sold at a higher level . which bata brand is the
most desired brands by the customer .This bar graph shows that customer buy bata brand as
they first prefer . The higher the bar means the high range of sales . Then North star , Marie
claire, Bata comfit, Power, Patapata ,B-first, Ambassador , Bata and more ,Sandak ,
Toughees , Baby Bubbles etc are also the desired selling brands to the customers .so we can
conclude that Bata shoe company (BD) Ltd should monitor a close concentration to sustain
the growth of the brands that are operated by Bata Shoe company (BD) Ltd.
7.11 Performance of a Bata store :
45 | P a g ewww.AssignmentPoint.com
Performance of a bata store means the layout , design , outlook , in store display, store decoration, salemen helpfulness, behabior of the store manager, location of the store , abailability of merchandise , abailability of premium brands etc .in this char all the variabls are measured by a 5 point scale where 1 is poor and 5 is excellent . above in the graph all most all the variables are within the range 3 to 4 that means average to good . location covenience , available merchandise , attractivness of window display these are higher than other variabls . so we can conclude bata store is maintaing the customer satisfaction through monitoring the important factors . Here all most all the variables are within the average to good (3 means average, 4 means good). So we can conclude that Bata should improve the performance of store by improving the significant services which are the contributing elements to improve the store performance to stay at top in the footwear industry
Comparison of performance between Bata store and Apex store 7.12 Performance of an apex store:
Performance of an apex store symbolizes that performance is measured by the various variables like attractiveness of window display , pleasant shopping environment , in store promotion , low price offered , range of brands, in store assistance , location convenience etc .Performance of an store is the most important factor which plays the vital role to determine the customer satisfaction by the competitors of Bata shoe company (BD) Ltd. this Bar graph shows the important factors are maintained by the competitors that can be improved by Bata to stay at top in the industry competition . Here all most all the variables are within the of average to good (3 means average, 4 means good). So we can conclude that apex is improving the performance of it stores to overcome other competitors in the footwear industry.
46 | P a g ewww.AssignmentPoint.com
7.13 Perception about Bata that comes to mind:
This bar graph explains the customers’ perception regarding Bata shoe company (BD) Ltd. This graph explains the percentage of the trend which is measured by the customers’ survey held at the store. Out of the 100% sample size 29% customer mention Bata is modern, 48% customer mention Bata is likable, and 16% customer mention Bata is honest and fair, 40% customer mention Bata is a leader, 39% customer mention Bata is innovative, 23% customer mention Bata is a part of their life, 3.2% customer mention Bata is ethical, 15% customer mention Bata is a brand which recommend to others, 4% customer think Bata has a personal touch. So we can conclude that Bata shoe company (BD) Ltd is likable, is modern, is a leader , is innovative etc with higher bar in the graph . So it means Bata emphasizes on customer satisfaction to ensure delivering the best footwear quality.
7.14 Possibility to visit Bata store in future:
47 | P a g ewww.AssignmentPoint.com
This pie chart explains the customer’s possibility of revisit into a Bata store again by a customer. This means customer are willing to revisit a Bata store when they are satisfied with the product quality , assistance of salesman ,convenient store location , premium brand range , pleasant store location etc . in this chart 1% customer mention that they are not likely at all to revisit at Bata store, 5% customer mention they are slightly likely to come again, 20% customer mention they are moderately likely to visit Bata store in future, 51% customer mention that they are very likely to come again in future at Bata stores, 24% customer mention they are extremely likely to visit Bata store in the future. So we can conclude 75% customer will be visiting Bata store on a frequent basis.
8.0 FINDINGS OF THE ANALYSIS, CONCLUSION AND RECCOMENDATIONS
8.1Findings The name Bata achieved such a position in the customers’ mind that whenever they
heard the name of Bata, a footwear with high quality comes 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 form the reason. This high TOMA level helps to maintain
customer loyalty as the customers prefer to fall back on the brand they know.
Value for Price offered by the store is an important factors to the respondents those
was surveyed. Value for money offered by the store has impact on Customer
satisfaction. Based on the quality of Bata most of the people said Bata’s price is fair
reasonable than the others. Although there are some shoes which are highly priced by
Bata, but those are of posh quality. To maintain the higher quality prices are little
high.
Convenient store location is an important factor to the customer for purchasing
shoes and for this case Bata obtains more remarks than others. From the study it has
found that there is a significant relationship between Store location and Customer
Satisfaction. Bata is the largest retail footwear company in Bangladesh as well as in
the world. There is a strong network of retail outlets in everywhere of the country,
which is a positive aspect of Bata.
48 | P a g ewww.AssignmentPoint.com
Bata is in a leadership position in the footwear industry for providing quality
products, the findings suggest that, Quality of shoes is an important factor to the
respondents those were surveyed. Almost 97% respondents were agreed with the fact
that Quality of Shoes has impact on customer satisfaction and they are more or less
satisfied with the quality of Bata.
The findings suggest that, comfort of shoes is an important factor to the respondents
those were surveyed. Respondents were strongly agreed with the fact that Comfort of
Shoes has impact on customer satisfaction. Bata has a strong team who always work
for the development of the products.
Fashionable Style is an important factors to the respondents those were surveyed.
Now a day’s people are more fashion concern that is why they agreed with the fact
that Fashionable Style has impact on customer satisfaction. From the comparison it is
found that Bata is lacking in this very criteria than the competitors.
Selection of colors, styles and sizes is an important factors to the respondents those
were surveyed. Respondent were more or less agreed with the fact that Selection of
colors, styles and sizes has impact on customer satisfaction. From the analysis it has
found that Selection of colors, style and sizes and Customer satisfaction are
positively related.
Brands of Shoes offered by the Store is an important factors to the respondents those
were surveyed. 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 satisfaction.
Bata serves to the customers with rich collection of brand shoes.
Advertising is a communication tool used to promote the product to the customers; it
has a positive impact on customer satisfaction. Bata advertises its products through
different media like electronic & print media, television commercials, new arrivals,
fashion shows, social networking facebook, twitter etc. Bata Bangladesh is
maintaining modern strategies to ensure mass marketing as well as huge brand
awareness. Bata shoe company (BD) Ltd is increasing its number of seasonal TVC.
49 | P a g ewww.AssignmentPoint.com
Layout and design of store is an important factors to the respondents those were
surveyed. Layout and design of store has impact on customer satisfaction. Bata
renovation department works to design the stores layout. Customers are satisfied
with Bata stores’ layout and design. That is admirable. Bata displays posters,
pictures, and pop in the retail outlets.
Finally, from the analysis it has found that Bata provides superior value to the
customers in quality of shoes store’s location, comfort ability of shoes, promptness
of service from salespeople, friendliness of service from salespeople, salespeople’s
product knowledge, promptness of service at cash register, display of shoes at
window/front of the store, display of shoes in the interior, cleanliness and orderliness
of the store, and layout and design of the store. All of these bring Bata close to the
customer with desired satisfaction.
8.2 ConclusionHere the study tried to find out customers satisfaction of Bata store and other shopping stores.
There are some emerging shoe stores in Bangladesh which have already gained customers
loyalty in footwear products. The study compared the Bata shoe company with other
emerging shoe brands such as Apex, Bay Emporium, Jennys, Pegasas, and many unorganized
shoe stores like at Elephant road. 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 competitor except serving customers up to date stylish and trendy
shoes. Bata has loyal customers group who buy Bata only for its quality. From the research it
can be definitely surmised that the hypotheses were largely accurate. The results from the
questionnaire survey and the statistical analysis both support the theory that the consumer
base of Bata is composed of customers who are more or less satisfied. However, Bata does
need some modifications in its marketing tactics regarding attracting new customers and
service offerings to the older ones. Bata should not take the brand loyalty for granted and
should take specific steps to ensure that they can hold on to the lucrative customer base they
have while focusing on a few informational tactics to inform potential customers. Bata is in a
secure position right now regarding customer satisfaction, loyalty, and the strategy they
follow seems to be effective. 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.
50 | P a g ewww.AssignmentPoint.com
8.3 RecommendationsFrom the research it is evident that Bata has a large loyal customer 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
increase into double. It is also recommended that Bata’s market share will increase by
up to date fashion shoes.
Bata can introduce an after sale service program where customers are allowed to
provide feedback on their purchasing and consuming experience. For this Bata can
introduce a claim settlement department where each and every customer can register
complains and frequent customer service monitoring by the Store manager.
Bata should have focused more on customer services. 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.
Bata should initiate their loyalty program where the customer who will join the
loyalty program will get loyalty card and will enjoy certain privileges. Facilities such
as advance online booking, special after sale service and longer guarantee period than
the usual one etc can be included on the loyalty card.
51 | P a g ewww.AssignmentPoint.com