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Internship report-on-marketing-mix-of-Bata-shoe-company- Main part.

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The Footwear Industry in Bangladesh has started since the colonial era, although its modernization took place only in the late 1980s. When Bata Shoe Company established its manufacturing plant at Tongi in 1962, it was the first manufacturing plant to produce shoes on a large scale in East Pakistan. The local footwear industry is experiencing an annual growth rate of 21 percent, according to leather goods and footwear manufacturing and exporters association of Bangladesh. Bangladesh is set to emerge as the next manufacturing hub for the global footwear industry. The cheap labor is prompting top manufacturers to relocate their factories in the country. The good news is that a number of foreign investors as well as buyers have already shown interest in Bangladesh’s leather and footwear sector. Bangladesh has a host of potential products that can earn substantially large amounts of foreign exchange. Japan and Germany are now the biggest markets for Bangladeshi footwear but US buyers are increasingly showing interest in sourcing from Bangladesh. Bata Shoe Company is the market leader in the footwear industry since its operation in Bangladesh. The name Bata achieve such a position in the customer’s mind that whenever they heard the name of Bata, a footwear with high quality comes in to their mind. Bata has been serving its customer with wide assortment of products for about five decades and doing it successfully. It is very difficult to identify the customer’s class of Bata Shoe Company. Bata meets the footwear demands of the higher class and lower class simultaneously. It has developed a strong distribution channel all over the world through the establishment approximately 6,300 retail outlets, 10,000 franchises and thousand of depots and dealers. More then 50,000 people are directly involved in the www.AssignmentPoint.com 1
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Page 1: Internship report-on-marketing-mix-of-Bata-shoe-company- Main part.

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

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

Shoe Company established its manufacturing plant at Tongi in 1962, it

was the first manufacturing plant to produce shoes on a large scale in East

Pakistan. The local footwear industry is experiencing an annual growth

rate of 21 percent, according to leather goods and footwear

manufacturing and exporters association of Bangladesh.

Bangladesh is set to emerge as the next manufacturing hub for the global

footwear industry. The cheap labor is prompting top manufacturers to

relocate their factories in the country. The good news is that a number of

foreign investors as well as buyers have already shown interest in

Bangladesh’s leather and footwear sector. Bangladesh has a host of

potential products that can earn substantially large amounts of foreign

exchange. Japan and Germany are now the biggest markets for

Bangladeshi footwear but US buyers are increasingly showing interest in

sourcing from Bangladesh.

Bata Shoe Company is the market leader in the footwear industry since

its operation in Bangladesh. The name Bata achieve such a position in the

customer’s mind that whenever they heard the name of Bata, a footwear

with high quality comes in to their mind. Bata has been serving its

customer with wide assortment of products for about five decades and

doing it successfully. It is very difficult to identify the customer’s class of

Bata Shoe Company. Bata meets the footwear demands of the higher

class and lower class simultaneously. It has developed a strong

distribution channel all over the world through the establishment

approximately 6,300 retail outlets, 10,000 franchises and thousand of

depots and dealers. More then 50,000 people are directly involved in the

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production and selling of over 300 million pairs of shoes each year. Bata

Shoe Company manages a retail presence in 55 countries, and runs 40

production facilities across 26 countries. Bata international headquarter is

located in Switzerland which was previously located at Toronto, in

Canada. In recent times Bata Bangladesh has lunched more then 180 new

designs for different brands in their men, women, children and infant

categories.

Bata business policy is the segmentation of retail outlets according to

profiles of different market segments and the introduction of novel

concepts. Bata retail are categorized into four types. They are City stores,

Family stores, Bata Bazar and clearance outlets. Bata offers a number of

product lines to the prospective consumers in the existing market.

Science in inception, Bata shoe company (Bangladesh) Ltd. has strived

towards one goal customer satisfaction. With the vision of building a

worldwide family of satisfied customers and dedicated workers the

legacy of Tomas Bata continues strong and unabated to this day the

tradition is safe.

The marketer’s task is to devise marketing activities and assemble fully

integrated marketing’s programs to create, communicate, and deliver

value for consumer. Marketing activities come in all forms. McCarthy

classified these activities as marketing mix tools of four broad kinds,

which he called the four Ps of marketing: product, price, place, and

Promotion.

Marketers make marketing mix decisions for influencing their trade

channels as well as their final consumers. Once they understand these

groups, marketers make or customize an offering or solution. Inform

customers recognizing that many other sources of information also exist

set a price that offers real value and choose places where the offering will

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be accessible. The firm can change its price, sales force size and

advertising expenditures in the short run.

It can develop new products and modify its distribution channels only in

the long run. Thus the firm typically makes fewer period to period

marketing mix changes in the short run then the number of marketing mix

decision variables might suggest.

The four Ps represent the seller’s view of the marketing tools available

for influencing buyers. From a buyer’s point of view, each marketing

tools is designed to deliver a customer benefit. A complementary

breakdown of marketing activities has been proposed that centers on

customers. Its four dimensions (Siva) and the corresponding customer

questions these are designed to answer are;

1. Solution: How can I solve my problem?

2. Information: Where can I learn more about it?

3. Value: What is my total sacrifice to get this solution?

4. Access: Where can I find it?

Winning companies satisfy customer needs and surpass their expectations

economically and conveniently and with effective communication. Two

key themes of integrated marketing are that (1) many different marketing

activities communicate and deliver value and (2) When coordinated

marketing activities maximize their joint effects. In other words

marketers should design and implement any one marketing activity with

all other activities in mind.

For example, using an integrated communication strategy means

choosing communication options that reinforce and complement each

other. A marketer might selectively employ television, radio and print

advertising, public relations and events, and PR and web site

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Communications, so that each contributes on its own as well as

improving the effectiveness of the others. E ach communications must

also deliver a consistent brand image to customer at every brand contact.

Applying an intergraded channel strategy ensures that direct and indirect

channel, such as online and retail sales, work together to maximize sales

and brand equity.

The term "marketing mix" became popularized after Neil H. Borden

published his 1964 article, The Concept of the Marketing Mix. Borden

began using the term in his teaching in the late 1940's after James

Culliton had described the marketing manager as a "mixer of

ingredients". The ingredients in Borden's marketing mix included product

planning, pricing, branding, distribution channels, personal selling,

advertising, promotions, packaging, display, servicing, physical handling,

and fact finding and analysis. E. Jerome McCarthy later grouped these

ingredients into the four categories that today are known as the 4 P's of

marketing, depicted below:

These four P's are the parameters that the marketing manager can control,

subject to the internal and external constraints of the marketing

environment. The goal is to make decisions that center the four P's on the

customers in the target market in order to create perceived value and

generate a positive response

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PART ONE

INTRODUCTION TO THE

ORGANIZATIONAL OVERVIEW

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MARKETING MIX OF A FOOTWARE INDUSTRY

IN BANGLADESH: ASTUDY BASED ON BATA

SHOE COMPANY (BANGLADESH) LTD

1.0 INTRODUCTION TO THE ORGANIZATION

OVERVIEW

1.1 Introduction

Bata Shoe Company is the market leader in the footwear industry since

its operation in Bangladesh. The name Bata achieved such a position in

the customers mind that whenever they heard the name of Bata, footwear

with high quality comes into their mind. Bata has been serving its

customer with wide assortment of products for about five decades and

doing it successfully. It is very difficult to identify the customer’s class of

Bata Shoe Company. Bata touch almost very social class possible. Bata

meets the footwear demands of the higher class and lower class

simultaneously. However to stay closer to the customers, Bata shoe

company undertakes an assessment of the customers at a regular interval.

Bata desire to fulfill the ever changing customer’s needs and to do so the

outcome of the customer assessment plays a significant role. Here the

similar study undertaken with a permission of Bata Shoe Company to get

the feedback from regular customers. The questionnaire is taken from

Bata shoe company Bangladesh Ltd to conduct the survey among the

regular customers. This study is analysis marketing mix of Bata shoe

company commitment to service continues to this day, from the

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designers’ sketchbook through to the performance of our shoes on a

customer’s foot. Bata companies strive to supply the right products, at the

right time, at the right price, and in a manner that fulfill our service

commitment to both retail and wholesale customers.

1.2 Footwear Industry in Bangladesh

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

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

British period, there was no Footwear manufacturing firm producing on a

mass scale in East Bengal. However a traditional cottage type Footwear

industry with limited production facilities existed in a skeleton from in

the district towns during the time. Various types of footwear were

imported, mainly from Calcutta. After the partition of Bangle in 1947,

footwear was imported from West Pakistan.

When Bata Shoe Company established its manufacturing plant at Tongi

in 1962, it was the first manufacturing plant to produce shoe on a large

scale in East Pakistan. In 1967, Eastern progressive shoe industries

(EPSI) established its production plant. It began exporting footwear

to USSR, Czechoslovakia and England. Both Bata and EPSI held major

shares in the local footwear market. The footwear industry suffered a

major setback during the war of liberation but was rehabilitated after

independence. Now footwear manufacturing units have recently been

established. Among them are Apex footwear, Excelsior shoes, and

paragon leather and footwear industries.

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Japan and Germany are now the biggest markets for Bangladeshi

footwear but US buyers are increasingly showing interest in sourcing

from Bangladesh. Bangladesh could have a billion dollar footwear export

sector by 2013, claim local shoe manufactures on the basis of both the

current growth in shipments and the increased production capacity in

factories under construction. If there assessment is correct, in the three

year period the level of exports can increase five fold from the $205

million worth of shoes that were exported in the last fiscal year that ended

in June 2010.

1.2.1 Multitude of Products

Bangladesh has a host of potential products that can earn substantially

large amounts of foreign exchange, if only the necessary patronage from

the overseas buyers is given from the sack of expending the countries

export base and thereby reach a sustainable status for the countries export

trade.

Recently, a new opportunity has opened up to further diversify the range

of Bangladesh’s exports base by including footwear and other leather

goods in the list of exports particularly to the European Union (EN)

market.

However, the country has already been exporting finished leather and

different kinds of leather products to the overseas market. These products

also enjoyed considerable demand because of their high quality. The

main reason for this was the natural advantage of leather that Bangladesh

produces. Despite the high quality6 of local animal hides both in raw and

finished from, Bangladesh was still trailing behind Vietnam and china in

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the export of footwear and other leather products in the European and

other market.

1.2.2 Manufacturing hub

Bangladesh is set to emerge as the next manufacturing hub for the global

footwear industry. The cheap labor is promoting top manufacturers to

relocate their factories in the country. The good news is that a number of

foreign investors as well as buyers have already shown interest in

Bangladesh’s leather and footwear sector.

Recently, the president of the Bangladesh finished leather, leather goods

and footwear exporters association (BFLLGFEA) informed all concerned

that three large investors in the footwear sector from Taiwan would set up

footwear factories in Dhaka and Chittagong exporting zones. The buyers

from EU, as well as other very highly developed industrial nations like

Japan have reportedly been showing importance in Bangladeshi leather

products. All these developments look promising for the local footwear

industry.

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The export processing zones at present have 18 shoe and leather goods

factories but there are at least seven large factories under construction,

mostly owned by big manufacturers in the shoe world. The factories

under constructions include Korean company Young one’s footwear

complex which is said to be the largest in Asia. The company started

construction of its mega shoe complex in Chittagong six month back. The

first part of the complex will go into production by the middle of next

year, and the company’s executives said they would be able to

manufacture about 30 million pairs of shoes by 2013.

In addition, Taiwanese shoe manufacturer pau Chen, which employs

about 4,00,000 workers in its factories in china and 50,000 in Vietnam, is

also building a large manufacturing facility in Chittagong. Australian

manufacturer bonbon shoe, a supplier to Hugo boss, and Xen Chen and

Genford of Taiwan, are also building footwear factories in Bangladesh.

Apex – Adelchi also has a new factory that will soon start production.

With an annual turnover of about $100 million, the Bangladesh – Italy

joint venture is now the largest exporter of footwear. However, with a

new joint venture factory, Blue Ocean footwear, due to go into

production by February 2011, Apex will get involved with a turnover of

nearly $200 million of footwear export by 2013.

1.2.3 Growth rate

The local footwear industry is experiencing an annual growth rate of 21

percent, according to a spokesman from another apex organization,

leather goods and footwear manufacturers and exporters association of

Bangladesh (LGFMEAM). However, to continue the trend, the present

level of growth has not only to be attained; it also has to be taken to a still

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higher level, if Bangladesh is to match the success of its immediate

competitors Vietnam.

According to a newly released statistics from the export promotion

Bureau of Bangladesh footwear exports from the country grew from US

$61 million in the period of July- November 2007 to $85 million in the

same period of 2008, recording a growth of 39 percent. In the first fore

months of the 2010 fiscal year’s footwear export is likely to cross $300

million. Though in the next two years the existing factories are likely to

export more shoes, it is the new capacity that will come on stream from

early 2011 that is expected to cause the huge spurt in growth.

Growth in exports is due to the low production cost in Bangladesh

compared to its neighboring countries: China, India and Vietnam, who

also have a very well entrenched leather and footwear export industry.

Order which earlier used to be given to china or India are now being

handed out to footwear manufacturers in Bangladesh because they are

able to produce low period but quality shoes, which have now found its

way into key markets in EU and Japan.

This growth in footwear exports has come as a blessing in disguise at a

time when leather exports have fallen by a massive 18 percent in the

period under review. Experts attribute the growth in footwear exports,

thanks to machineries imported from Italy that is trusted for its quality

output. In recessionary trends, high priced products tend to register a

negative growth, as consumers tend to shy away from them in preference

for value for money items. In this scenario, it is a golden opportunity for

the leather and footwear sector to increase its global market share.

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PART TWO

OVER VIEW OF

BATA SHOE COMPANY

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2.0 OVERVIEW OF BATA SHOE COMPANY

2.1 Brief history of Bata Shoe Company

Bata Shoe Company was founded by the famous entrepreneur Mr. Tomas

Bata who blew the wind of change in the footwear industry in 1894. The

company was started from zlin, Czechoslovakia, now known as the Czech

Republic. From that day onward Bata Shoe Company has been the largest

manufacturer and marketer of footwear in the world. The global business

of Bata comprises of shoe factories, tanneries, engineering plants, quality

control laboratories, product development and research centers.

Bata has developed a strong distribution channel all over the world

through the establishment approximately 6,300 retail outlets, 10,000

franchise and thousands of deports and dealers. More then 50,000 people

are directly involve in the production and selling of over 300 million

pairs of shoe each year. Bata Shoe Company manages a retail presence in

55 countries, and run 40 production facilities across 26 countries. Bata

international headquarter is located in Switzerland which was previously

located at Toronto, in Canada.

Bata today

. Serve 1 million customers per day

. Employee more then 50,000 people

. Operates 5000 retail stores

. Manages a retail presence in over 70 countries

. Run 27 production facilities across 20 countries

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2.2 Bata Business

Bata shoe organization companies are involved in every facet of the

business of shoes. Throughout the world, Bata services customers from

the store sales floor to the factory floor.

Retailing

Bata shoe organization companies have built successful retail store

concepts to satisfy changing customer tastes and needs. Each store futures

merchandise targeted to different lifestyles and people. The merchandise

ranges from footwear to clothing and goods complementing shoe

offerings. Sensitivity to and satisfaction of customer wants and needs has

allowed the Bata shoe organization (BSO) to became a world leader in

footwear.

Manufacturing

Tomas Bata’s revolutionary business concept was to industrialize the

shoe making process of that day. That type of thinking has been the

driving force behind the Bata shoe organization success. The Bata shoe

organization has been an innovator in the manufacturing of shoes over the

year. Bata personnel have made important. Advances in DVP (Direct

vulcanization Process), PVC, athletic footwear production and slush

molded footwear production.

Wholesaling

The Bata shoe organization (BSO) enjoys a unique position in the

wholesale marketplace. Global economies of scale enable BSO plants to

offer quality products at local prices, with many are operating at ISO

standards. Bata shoe organization production facilities are world

renowned for their commitment to quality and customers, and have

attracted production contracts from many international footwear brands.

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Brands & Product Development

Throughout the world, the Bata ® brand distinguishes well made and well

priced footwear. Many core articles for Bata ® branded collections are

designed in product development centers in Italy, the Far East and

Canada. Designers and merchandisers in Bata shoe ionization companies

broaden the collections by developing complementary styles to reflect

tastes, budgets and climates within their own market. Strict quality

controls govern the selection of materials and all production stages.

2.2.1 Business units of Bata shoe company

Bata is operating business in five business units such as Europe, Asia

pacific, Latin America, North America, and Africa. Bata announces its

worldwide presence through these five business units.

Figure 1: Business units of Bata shoe company

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2.2.2 Worldwide coverage of Bata

Red zones have already been entered by Bata shoe Organization.

Figure 2: Worldwide coverage of Bata

2.3 Bata shoe company (Bangladesh) Ltd.

Bata shoe organization started its operation in Bangladesh in 1962. The

company was incorporated in1972. The company is affiliated to the Bata

shoe company, the largest footwear manufacturing and marketing

organization.

According to Bata Bangladesh website (2010) it is mentioned that

currently, Bata Bangladesh operates 2 manufacturing plants at Tongi and

Dhamrai, have production capacity of around 1,10,000 pairs of shoes

daily. It has a modern tannery with the latest technological facilities to

process 5 million square feet of leather yearly. The tannery is equipped

with a high tech effluent treatment plant ensuring a pollution free

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environment for booth workers and the environment. Bangladesh’s

regional headquarter is located in Singapore.

Bata is playing a pivotal role in developing the leather industry of the

country. Bata has a firm commitment to eco- friendly business and a state

of the art Effluent treatment plant (ETP) has been set up to provide a

pollution free environment for booth workers and the locality.

Fashion would never be complete without a well designed pair of shoe.

This marketing insight has promoted Bata to introduce a number of

designer’s collection for men, women and children. Internationally

renowned brands such as Bata comfit, Marie Claire, Hush puppies,

Scholl, Nike, Bubblegummers, Sandak, Weinbrenner and B’ First are a

few names that testify to the momentous change towards branded shoe

marketing in Bangladesh. Specialized shoe categories such as athletic

shoe have been targeted through development of the power brand.

Uncompromising quality with striking designs have put Bata shoe in a

key position to appeal to different segments of consumer.

Another major change in the Bata business policy is the segmentation of

retail outlets according to profiles of different market segments and the

introduction of novel concepts such as Bata city stores. These selective

outlets, in conjunction with

Other types of outlets such as Bata Bazar and Bata family store, are

adding a new level of consumer satisfaction.

The city stores incorporate spacious floor space allowing a comfortable

shopping experience, modern interior decor enriched with novel shelving

systems, fittings, fixtures and lighting that can be found in the large retail

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shops in the Far East and Europe. Bata has a network of 242 retail outlets

located strategically in different parts of the country. These retail outlets

are an integral part of our brand marketing. This extensive retail network

is supplemented by an equally extensive network of depots and dealers.

Bata has 13 wholesale depots covering Bangladesh. Under these depots

390 RWD (Registered Wholesale Dealers) and 553 DSP (Dealer Support

program) stores are operating. Bata Bangladesh has already developed its

vision up to 2013 showing significant business growth as well as

increased market share.

One of the critical areas associated with external shareholders and the

community at large is the corporate social responsibility program of the

company. From supporting nationwide sports sponsorships and disabled

persons to addressing environment concern, scholarship program, charity

contribution etc – Bata has always supported individuals and

communities in need. Partnerships with other voluntary and charitable

organizations are another prominent feature of Bata’s corporate social

responsibility. Bata, in partnership with CARE, extends assistance to over

two thousand rural women in order to become independent entrepreneurs

in the Rajshahi, Camilla and Chittagong division selling shoe from door

to door under its rural sales program.

Science its inception, Bata shoe company (Bangladesh) Ltd. has strived

towards one goal customer satisfaction. With the vision of building a

world wide family of satisfied customers and dedicated workers the

legacy of Tomas Bata continuous strong and unabated to this day – the

first tradition is safe. Bata Bangladesh has about 1500 regular and

efficient employees and workers, who are highly committed to uplift the

company’s performance with high productivity and sales

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Through maintaining the quality. In recent times Bata Bangladesh has

lunched more then 180 new designs for different brands in their men,

women, children and infant Categories. Eventually they have received

excellent responses from their various target groups on the new designs.

2.3.1 Customer service

personalized service

Qualified and enthusiastic sales associates are engaged who take

customer’s satisfaction to heart. In many countries customer service goes

beyond the store with home deliveries, orders made possible via

catalogues, the web or even call centers.

Guaranteed customer satisfaction

In any Bata store in the world they repair, exchange or refund any

products with defects. They also exchange or refund on unworn

merchandise if one changes one’s mind. Proof of purchase is required for

refunds.

Bata Gift Voucher

Bata gift vouchers are like cash coupons that can be used by customers to

make purchases of Bata products from selected Bata shoe stores. Gift

vouchers are available in three denominations- Tk. 1,000 and Tk. 2,000.

Customer service center

Bata Shoe Company (Bangladesh) Ltd has a customer service center and

the contract address is: Phone: +88029800501-5 Ext: 209

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2.4 Mission & vision

Bata Shoe Company has been successfully running for years with a

mission and vision at the heart of all its operations.

2.4.1 Mission

“Introduction of a strong shoe line targeted to various market segments to

maintain leadership through increased market share.”

2.4.2 Vision

“To provide good quality shoes at an affordable price by keeping in mind

the comfort that needs to be there and providing new designs with it.”

2.4.3 Environmental Mission

To protect our people customers and communities and to protect our

natural environment in order to help sustain human development

globally.

Figure 3: Factories of Bata shoe company (Bangladesh) Ltd.

3.1 Tongi Plant

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3.2 Dhamrai Plant

2.5 Management of Bata shoe company (Bangladesh)

Ltd.

Name Designation

Mr. Muhammad Qayyum Company ManagerMr. M.Habibur Rahman Head of Human ResourceMr. Bishwajit Roy Retail managerMr. Minhaj Ahmed Chowdhury Production ManagerMr. Yee Siew NG Chief Financial OfficerMr. Ruhul Amin Molla Wholesale ManagerMr. Qayyum Khan Mahbub Purchasing ManagerMr. Carlos Arturo Zuluaga Sachez Product Development ManagerMr. Iraz Ahmed Chowdhury Merchandising Manager

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2.7 Bata business Types

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Bata business policy is the segmentation of retail outlets according to

profiles of different market segments and the introduction of novel

concepts. Bata retail store are categorized into four types:

City Stores

Bata city stores offer the urban customers a wide variety of current

fashion footwear and accessories. There are 25 city stores in Bangladesh,

16 in Dhaka metropolitan area, other in Chittagong, Sylhet, and in

Mymensingh metropolitan area. These stores are established in prime

locations, and provide a high level of customer service, exclusive shoe

lines with complementary accessories and contemporary shopping

environment are to discerning shoppers.

Figure 4: Bashundhara Mall Bata store (city store)

Family Stores

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Bata Shoe Company is undoubtedly the world’s leading family footwear

chain. The company offers a wide assortment of every day’s fashion

footwear. The products are primarily of the brand Bata. Nevertheless very

carefully selected articles from both local and international brands are

also marketed by the company. There are 60 family stores till date that

has been successfully operated all over the Bangladesh.

Bata Bazar

Bata Bazar is the largest display of Bata’s products among all others store

concepts. It provides the customer with broadest range of products and

accessories possible. This concept was introduced in 2003. They are

ideally located in power centers commercial parks and outlet centers with

easy parking facilities. There are 73 Bata bazars being operated.

Figure 5: Sadarghat Bata Bazar, Dhaka

Clearance Outlets

There are three Clearance outlets of Bata Shoe Company where

discounted shoes are sold.

Figure 6: Discounted shoes at clearance outlets

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2.8 SWOT Analysis of Bata shoe company (Bangladesh) Ltd

Strengths:

High quality products

Strong Brand image

Extensive product lines

Strong and mass distribution network

Wide range of associated brands

Skilled management team

Modern manufacturing facilities

Potential target market

Loyal customers

Weaknesses:

High price

More emphasize on quality rather than design

Lake of promotional activities

Less effort to attract new customer

High cost structure

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High import duties

High administrative cost

Vat & tax barrier

Opportunities:

Wide assortment of products offered

Better customer service

Rise in export

More emphasize on product quality and design

Strong retail store network

Neat & clean retail outlets

Trained salesmen

Threats:

“Apex” is considered the biggest threats

potential new brands like Bay Emporium

Counterfeiting of Bata shoes in uncontrolled locations

Consumer perception regarding high price

High price due to high production cost

Disruption of consistent supply

Switching new generation to trendy products

2.9 About Bata Bangladesh:

• 2 Manufacturing Plant

• 172 Retail stores

• 52 Agencies

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• 13 Depot

• 393 Wholesales

• 562 Dsp

• Earns 72 million taka in export (yearly)

2.10 Achievement

In 2010, Bata Shoe Co (BD) Ltd wins “ Super brands” award.

Suparbrands is a unique brand not only Bangladesh but also international

renowned brand and have a good brand image all over the world. In

Bangladesh only Bata shoe co (BD) Ltd has achieved this awarded.

2.11 Sponsor

“Bata is official clothing sponsor of the Bangladesh Cricket

Team”

Figure 7: Bata sponsor of Bangladesh cricket team

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2.12 No of the Design

Men Shoe

Dress shoe 31 Designs

Casual shoe 48 Designs

Sports shoe 38 Designs

Sandals 53 Designs

Thongs 32 Designs

Ladies shoe

Dress shoe 49 Designs

Casual shoe 69 Designs

Sports shoe 02 Designs

Sandals 53 Designs

Thongs 28 Designs

Kids

Infants 13 Designs

Boys 03 Designs

Girls 13 Designs

Sandals 14 Designs

Thongs 10 Designs

Scholl 08 Designs

2.13 Functional Department of Bata

The full activities the Bata shoe co (BD) Ltd are composed of following

major functional department activities.

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• Human Resource

• Merchandising

• Purchasing

• Costing & Efficiency

• Manufacturing

• Lab & Quality Assurance

• Advertising

• Management Information System (MIS)

• Retail

• Wholesale

• Finance & Administration

• Central Distribution Center (CDC)

• Associates Business Unit (ABU)

• Engineering

• Tannery

• Product Development

• Direct Sale & export

2.14 Corporate Office in Bangladesh

Tongi Industrial Area

Tongi, Gazipur

Bangladesh

Fax: 880-2-9800511

Phone: 880-2-9800501 – 5

E- Mail: bata 518 @ batabd .com

URL: www. batabd . Com

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PART THREE

MARKETING MIX OF

BATA SHOE CO (BD) LTD

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3.0 INTRODUCTION OF THE RESEARCH

PROJECT

3.1 Introduction

Footwear industry is one of the promising sectors in Bangladesh.

However, the country has already been exporting finished leather and

different kinds of leather products to the overseas market. These products

also enjoyed considerable demand because of their high quality. The

main reason for this was the natural advantages of leather that

Bangladesh produces. Recently, a new opportunity has opened up to

further diversify the range of Bangladesh’s export base by including

footwear and other leather goods in the list of exports particularly to the

European Union (EU) market.

At present, Bata is dominating in the footwear industry in Bangladesh.

Bata Bangladesh is affiliated to the Bata shoe organization, the world’s

largest footwear manufacturing and marketing organization. Bata Shoe

Company started its operation in Bangladesh in 1962, incorporation in

Bangladesh in 1972. Currently, Bata Bangladesh operates 2

manufacturing plant tongi and Dhamrai; Bata Bangladesh is producing

around 110,000 pairs of shoes daily. It has a modern tannery with the

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largest technological facilities of process 5 million square feet of leather

yearly. The tannery is equipped with high – tech effluent treatment plant

ensuring a pollution free environment for both workers and locality where

they operate.

Bata’s strength lies in its worldwide presence. While local companies are

self- governing, each one benefits from its link to the international

organization for back- office systems, product innovations and sourcing.

Although Bata operates in a wide variety of markets, climates and buying

power Bata companies share the same leadership points. Two important

ones are product concept development and constant improvement of

business process in order to offer customers great value and the best

possible service. Bata strives to supply the right products, at the right

time, at the right price, and in a manner that fulfill its service

commitments to both retail and wholesale customers. Historical strong

presence in many developing countries provides them with a deep

understanding of the local cultures and needs. Therefore their position

entices them tackle concerns in priority with local initiatives in close

partnership with specialists on the field. However to say closer to the

customers and to fulfill the ever changing customer’s needs, the customer

assessment plays a significant role.

3.2 Background of the Study

Bata Shoe Company is the market leader in the footwear industry since

its operation in Bangladesh. The name Bata achieved such a position in

the customers mind that whenever they hared the name of Bata, footwear

with high quality comes into their mind. Bata has been serving its

customers with wide assortment of products for about five decades and

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doing it successfully. Bata offers a number of product lines to the

prospective consumers in the existing market. Bata has a truly

international team whose diversity of ideas to develop new style

footwear, shocks, sneakers, etc. Bata has introduced huge product line of

men footwear shoes, sandal, sneakers, shocks, women footwear, kid’s

footwear and many other types of footwear line the company is operating

in the market. About half line of product the company imports and sells

under the franchising. Bata also sell ten international brands footwear at

their retail shop. Bata has been delivering hand – crafted quality footwear

over 100 years to maintain and build on heritage of creating high quality,

comfortable and stylish shoes.

3.3 Origin of the Report

Bangladesh has a host of potential products that can earn substantially

large amounts of foreign exchange, if only the necessary patronage from

the overseas buyers is given from the sack of expending the countries

export base and thereby reach a sustainable status for the countries export

trade. In marketers task is to devise marketing activities and assemble

fully integrated marketing programs to create communicate and deliver

value for consumer. Marketing activities come in all forms McCarthy

classified this activity as marketing mix tools of four broad kinds which

he called the four Ps of marketing.

Product, price, promotion, place is the particular marketing variables

under each p are shown in market. Recently, a new opportunity has

opened up to further diversify the range of Bangladesh’s exports base by

including footwear and other leather goods in the list of exports

particularly to the European Union (EN) market.

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However, the country has already been exporting finished leather and

different kinds of leather products to the overseas market. These products

also enjoyed considerable demand because of their high quality. The

main reason for this was the natural advantage of leather that Bangladesh

produces. Despite the high quality6 of local animal hides both in raw and

finished from, Bangladesh was still trailing behind Vietnam and china in

the export of footwear and other leather products in the European and

other market.

3.4 Research problem

Marketers make marketing mix decisions for influencing their trade

channel as well as their final consumers. Ones they understand these

groups marketers make or customize an offering or solution.

To find out the market prospect or potential of Bata shoe company

(BD) Ltd.

To determine the customer & service.

To determine the effectiveness of the competitors price.

To determine the effectiveness of current promotional activities.

3.5 Research Objectives

The research objectives are broken down in to broad and specific

objectives which are enumerated below:

3.5.1 Broad Objective

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The board objective of the study is to assess the customer priority of shoe

industry in Bangladesh focusing on Bata shoe company (BD) Ltd. This

has been broken into following specific objectives.

3.5.2 Specific Objectives

To examine the current state of Bata shoe company (BD) Ltd in the

market

To examine the perception about Bata shoe in consumer mind

To analyze the impact of Quality shoes for customer

To analyze the impact of Comfort for customer

To analyze the impact of value for price offered

To analyze the impact of fashionable style offered

To analyze the impact of brands of shoes offered

To analyze the impact of selection of colors, style and size

To analyze the impact of advertising on customer

To analyze the impact of placement

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3.6 Scope

To achieve the objectives it is needed to collect data form customer

within the country. But for time, cost and other limitations. For achieving

the objectivities the study will be focused on the quality product, price,

promotion, placement conformability and other criteria of Bata shoes as

well as the completive position with Apex, Bay and other competitors.

While doing so it will also identify the limitations and the weakness of

the issue.

3.7 Benefit of the Study

To survive in an ever growing industry, it is very important for any

company to know its customers level of satisfaction to the products and

service provided by the company. This research will facilitate Bata Shoe

Company to know the present market situation and what customer wants

from company. This information can help to design future strategic to

retain existing the customers and obtain new one.

3.8 Literature review About Marketing Mix

What is the marketing mix?

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The marketing mix is probably the most famous marketing term. Its

elements are the basic, tactical components of a marketing plan. Also

known as the Four P's, the marketing mix elements are price, place ,

product, and promotion. Read on for more details on the marketing mix.

The concept is simple. Think about another common mix - a cake mix.

All cakes contain eggs, milk, flour, and sugar. However, you can alter the

final cake by altering the amounts of mix elements contained in it. So for

a sweet cake add more sugar!

It is the same with the marketing mix. The offer you make to you

customer can be altered by varying the mix elements. So for a high

profile brand, increase the focus on promotion and desensitize the weight

given to price. Another way to think about the marketing mix is to use the

image of an artist's palette. The marketer mixes the prime colors (mix

elements) in different quantities to deliver a particular final color. Every

hand painted picture is original in some way, as is every marketing mix.

If you'd like to see the marketing mix applied to a real business - then

take a look at our Ryanair marketing mix.

Some commentators will increase the marketing mix to the Five P's, to

include people. Others will increase the mix to Seven P's, to include

physical evidence (such as uniforms, facilities, or livery) and process (i.e.

the whole customer experience e.g. a visit the Disney World). The term

was coined by Neil H. Borden in his article The Concept of the Marketing

Mix in 1965.

3.8.1 Integrated Marketing

The marketer’s task is to devise marketing activities and assemble fully

integrated marketing’s programs to create, communicate, and deliver

value for consumer. Marketing activities come in all forms. McCarthy

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classified these activities as marketing mix tools of four broad kinds,

which he called the four Ps of marketing: product, price, place, and

promotion the particular marketing variables under each p are shown in

figure.

Marketing Mix

Product Price Place Promotion

Chart 1: Marketing Mix

3.8.2 Each marketing mix is divided in sub parts:

Product: Price:

Product variety List price

Quality Discount

Design

Allowances

Features Payment

period

Brand name Creditors

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Packing

Sizes

Services

Warranties

Returns

Promotion: Place:

Sales promotion Channels

Advertising Coverage

Sales force

Assortments

Public relations Locations

Direct marketing Inventory

Transport

Marketers make marketing mix decisions for influencing their trade

channels as well as their final consumers. Once they understand these

groups, marketers make or customize an offering or solution. Inform

customers recognizing that many other sources of information also exist

set a price that offers real value and choose places where the offering will

be accessible. The firm can change its price, sales force size and

advertising expenditures in the short run.

It can develop new products and modify its distribution channels only in

the long run. Thus the firm typically makes fewer period to period

marketing mix changes in the short run then the number of marketing mix

decision variables might suggest.

The four Ps represent the seller’s view of the marketing tools available

for influencing buyers. From a buyer’s point of view, each marketing

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tools is designed to deliver a customer benefit. A complementary

breakdown of marketing activities has been proposed that centers on

customers. Its four dimensions (Siva) and the corresponding customer

questions these are designed to answer are;

1. Solution: How can I solve my problem? 2. Information: Where can I learn more about it?

3. Value: What is my total sacrifice to get this solution?

4. Access: Where can I find it?

Winning companies satisfy customer needs and surpass their expectations

economically and conveniently and with effective communication. Two

key themes of integrated marketing are that (1) many different marketing

activities communicate and deliver value and (2) When coordinated

marketing activities maximize their joint effects. In other words

marketers should design and implement any one marketing activity with

all other activities in mind.

For example, using an integrated communication strategy means

choosing communication options that reinforce and complement each

other. A marketer might selectively employ television, radio and print

advertising, public relations and events, and PR and web site

Communications, so that each contributes on its own as well as

improving the effectiveness of the others. E ach communications must

also deliver a consistent brand image to customer at every brand contact.

Applying an intergraded channel strategy ensures that direct and indirect

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channel, such as online and retail sales, work together to maximize sales

and brand equity.

3.9 Current Marketing Mix

3.9.1 Product

Bata offers a number of product lines to the prospective consumers in the

existing market. Bata has truly international team whose diversity of

ideas to develop new style footwear, shocks, sneaker, etc. Bata has

introduce huge product line of men footwear – shows, sandal, sneakers,

shocks, women footwear, kid’s footwear and many other types of

footwear line the company is operating in the market. About half line of

product the company imports and sells under the franchising. Bata also

sell ten international brands footwear at their retail shop.

Premium collection

Bata has been delivering hand crafted quality footwear over100 years to

maintain and build on heritage of creating high quality, comfortable and

stylish shoes.

Product

• For many a product is simply the tangible, physical entity that

they may be buying or selling. You buy a new car and that's the

product - simple! Or maybe not. When you buy a car, is the

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product more complex than you first thought? The Three Levels

of a Product.

• The Product Life Cycle (PLC) is based upon the biological life

cycle. For example, a seed is planted (introduction); it begins to

sprout (growth); it shoots out leaves and puts down roots as it

becomes an adult (maturity); after a long period as an adult the

plant begins to shrink and die out (decline).

• The Customer Life Cycle (CLC) has obvious similarities with the

Product Life Cycle (PLC). However, CLC focuses upon the

creation of and delivery of lifetime value to the customer i.e. looks

at the products or services that customers NEED throughout their

lives.

To create the right marketing mix, businesses have to meet the following

conditions:

• The product has to have the right features - for example, it must

look good and work well.

• The price must be right. Consumer will need to buy in large

numbers to produce a healthy profit.

• The goods must be in the right place at the right time. Making sure

that the goods arrive when and where they are wanted is an

important operation.

• The target group needs to be made aware of the existence and

availability of the product through promotion. Successful

promotion helps a firm to spread costs over a larger output.

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For example, a company like Kellogg's is constantly developing new

breakfast cereals - the product element is the new product itself, getting

the price right involves examining customer perceptions and rival

products as well as costs of manufacture, promotion involves engaging in

a range of promotional activities e.g. competitions, product tasting etc,

and place involves using the best possible channels of distribution such as

leading supermarket chains. The product is the central point on which

marketing energy must focus. Finding out how to make the product,

setting up the production line, providing the finance and manufacturing

the product are not the responsibility of the marketing function. However,

it is concerned with what the product means to the customer. Marketing

therefore plays a key role in determining such aspects as:

• the appearance of the product - in line with the requirements of the

market

• The function of the product - products must address the needs of

customers as identified through market research.

The product range and how it is used is a function of the marketing mix.

The range may be broadened or a brand may be extended for tactical

reasons, such as matching competition or catering for seasonal

fluctuations. Alternatively, a product may be repositioned to make it

more acceptable for a new group of consumers as part of a long-term

plan.

Brands

Bata store carry following shoes brands:

Hush Puppies

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Weinbrenner

Nike

Power

North Stare

Bata Comfit

Sandak

Bubble Gummers

Marie Claire

Scholl

Bata

Ambassador

Bata Industrial

B ‘ First

Island

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Pata Pata

Figure 8: Bata brands logo

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Hush Puppies

Hush puppies is the international brand, Bata uses the franchising power

to supply the product in the Bangladeshi market. The target customers of

this model are rich people. Basically it is an American brand.

Figure 9: Hush Puppies

Weinbrenner

The Weinbrenner shoe line is made up of leather shoes and boots, style in

low, mid, and high cut. Cuts or design are directly fashion, but can

include materials which help to fell comfort in doing outdoor strong

works. The shoes are casual in style closures generally with laces and

eyelets, sometimes supplemented with hooks, D- rings and straps with

buckles.

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Figure 10: Weinbrenner

Nike

Nike is a worldwide famous and popular athletic shoe brand. Bata carries

this brand as a licensing. This brand is for a different segment of

customers in Bangladesh. Though it is an athlete shoe but in Bangladesh

young generation wear it as a fashionable product. The target customer of

this product is higher income group people.

Figure 11: Nike

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Power

Power is also an athlete shoe which is considered as the alternative of

Nike. Power shoes are cheaper than Nike shoes. The target customer of

this shoe is middle class people.

Figure 12: Power

North-Star

North-Star is a trendy shoe focused to the young customer group. This

shoe is cheaper than Nike and power. This is considered as a seasonal

product as the demand increase in winter.

Figure 13: North-Star

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Bata Comfit

Comfit has an important feature in design and assembly of all the comfit

shoes. This brand is focused on both comfort and style of shoes. Unit

rubber, PVC, PU or TRR sole are commonly used in this brand. “Get

comfortable today” is a tagline commonly associated with this range of

shoes.

Figure 14: Bata Comfit

Sandak

Sandak is a plastic made Bata product for lower income people to use in

every season of the year. This shoe is also made for rough use for all level

of customers.

Figure 15: Sandak

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Bubblegummers

Bubblegummers is the leading children’s footwear brand in Latin

America and has developed an extensive presence in Asia and in Europe.

Bubblegummers offers quality, comfortable, funny and colorful shoes for

the 0 to 9 age that assure the healthy growth of a child’s foot.

Figure 16: Bubblegummers

Bata

Bata is the old and own brand of Bata Shoe Company. But by the time

being this brand is updated to fulfill the customers demand.

Figure 17: Bata

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Marie Claire

Marie Claire shoes are for women with an active lifestyle who seek

contemporary modern styles. Marie Claire shoe stores successfully

opened in Latin America and Asia. Bata brands are the trademark owner

of Marie Claire for shoes worldwide 9 except in Japan and Korea).

Figure 18: Marie Claire

Bata Industrial

Footwear beyond safety Bata Industrial is a specialized division of the

Bata group producing Industrial and work- related footwear, hosiery and

accessories.

Figure 19: Bata Industrial

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Scholl

Scholl is a female brand which is focused for the school going girls.

Figure 20: Scholl

3.9.2 Placement

Bata has a network of 250 retail outlets located statically in different parts

of the country. This extensive retail network is also supplemented by an

equally extensive network of deports and dealers. The retail outlets are

segmented according to the profile of customer and different market

segments. According to the segmentation the three different types of

outlets are

Bata City: The city stores incorporate spacious floor space

allowing a comfortable shopping experience, modern interior

enriched with novel shelving systems, fittings, fixtures and

lighting. The city stores are established in prime location of

metropolitan city. Among the 25 city stores 16 are established in

Dhaka and other in major business area.

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Bata Bazar: Bata Bazar holds the largest display of Bata’s

products consisting wide range of assortment. It provides the

customers with broadest range of products and accessories in a

different price range possible. But exclusive brands and products

are not been sold here. This concept was introduced in 2003.

Bata Family: It is more a like a clearance outlet. Most of the

products which are been sold here are in sale.

These three types of stores are serving different segment of target market

and adding a new value in customer satisfaction.

Place

Another element of Neil H.Borden's Marketing Mix is Place. Place is

also known as channel, distribution, or intermediary. It is the

mechanism through which goods and/or services are moved from the

manufacturer/ service provider to the user or consumer.

Alth

ough figures vary widely from product to product, roughly a fifth of the

cost of a product goes on getting it to the customer. 'Place' is concerned

with various methods of transporting and storing goods, and then making

them available for the customer. Getting the right product to the right

place at the right time involves the distribution system. The choice of

distribution method will depend on a variety of circumstances. It will be

more convenient for some manufacturers to sell to wholesalers who then

sell to retailers, while others will prefer to sell directly to retailers or

customers.

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3.9.3 Price

Bata use price- quality leadership approach. They set the price based on

value. In some country they target high quality niche and in some country

price sensitive segment. Every where they set the price based on value

they delivered.

Bata follow geocentric pricing techniques. According to the demographic

features the local pricing for Bata shoes for men, women and children is

given bellow:

Category Highest [BDT] Lowest [BDT]

Men Dress 6990 990

Men Summer 4490 550

Women Dress 5490 1390

Women Summer 2490 690

Athletic footwear 1390 12000

Children footwear 290 1290

Sandak/Sandals 120 90

Table 1: Pricing of Bata Shoes

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3.9.4 Promotion

Bata has put less effort in promoting their products. They think the 250

retail outlet throughout the country helps Bata to do integral brand

marketing. Other then that they are the official clothing sponsor of

Bangladesh Cricket Team. However Bangladesh, Bata has done many

promotional activities like:

TV campaign

Print advertisement

Outdoor (Billboard)

Web based E- flyer, SMS

Among all those promotional activities they have emphasized on outdoor

advertising in Bangladesh.

Another one of the 4P's is promotion. This includes all of the tools

available to the marketer for 'marketing communication'. As with Neil

H.Borden's marketing mix, marketing communications has its own

'promotions mix.' Think of it like a cake mix, the basic ingredients are

always the same. However if you vary the amounts of one of the

ingredients, the final outcome is different.

Promotion is the business of communicating with customers. It will

provide information that will assist them in making a decision to purchase

a product or service. The razzmatazz, pace and creativity of some

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promotional activities are almost alien to normal business activities.

The cost associated with promotion or advertising goods and services

often represents a sizeable proportion of the overall cost of producing an

item. However, successful promotion increases sales so that advertising

and other costs are spread over a larger output. Though increased

promotional activity is often a sign of a response to a problem such as

competitive activity, it enables an organization to develop and build up a

succession of messages and can be extremely cost-effective.

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PART FOUR

RESEARCH METHODOLOGY

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4.1 Type of Research

This research is a qualitative exploratory research, as it is an initial

research conducted clarify and define the nature of a problem. It is

qualitative as the results of this research focuses on words and

observations, instead of numbers and mathematical analysis. At first an

exploratory research has been conducted to define the nature of the

problem.

4.2 Basic Research Method

This section has described the basic research plan of the study. It has

specified all the procedure necessary to solve the research. The basic

research method in this study will be survey method. An observation

method will not produce expected result. As experiment study is costly so

it will not be undertaken.

4.3 Research Preparation

A Planned questionnaire is very impotent to do the research. In this case

a structured questionnaire was provided by Bata Shoe Company. Due to

some statistical analysis difficultly the questionnaire was rephrased a

little bit. The questionnaire is prepared by considering following criteria:

• pertinent for research

• Simple language is used

• Leading & loaded questions is avoided

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• Easy to understand questions

4.3.1 Bata Footwear compare with other company

About 78.4% of people mention Bata as their first option when they think

of any footwear company. 15.1% respondent mentioned about Apex.

And rests of the respondents have mentioned other company name as

their first choice.

Table 2: Frequency distribution of Bata shoe co. compare with

other

Frequency Percent

Bata

Apex

Bay

Liberty

Shamrat

Rado

34

156

13

3

1

1

13.6

62.4

5.2

1.2

.4

.4

Chart 2: Bata shoe co. compare with other company

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4.3.2Bata’s price v/s competitor’s price

Based on the quality of Bata 56 percentage of people said Bata’s price is

fair reasonable. On contrary 41 % of survey people said according to the

quality Bata is changing more.

Table 3: Frequency distribution of Bata’s quality v/s price

Frequency Percent

Expensive for the quality

Fair and reasonable

Medium

Low

101

141

6

2

40.4

56.4

2.4

.8

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Bata compare w ith other

020406080

100120140160180

Frequency Percent

company

Bat a

Apex

Bay

Libert y

Shamrat

Rado

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Total 250 100.0

Chart 3: Bata’s quality v/s price

4.3.3 Quality of shoes

Table 4: Frequency distribution of Quality of shoe

Frequency Percent

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40.4

56.4

2.40.81

2

3

4

5

6

7

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neutral

Agree

Strongly Agree

Total

7

24

219

250

2.8

9.6

87.6

100.0

Chart 4: Quality of shoes

4.3.4 Brands offered

Table 5: Frequency distribution of brand of shoe offered

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qua lity of shoe

0

50

100

150

200

250

300

neut ral Agree St ronglyAgree

Tot al

Series1

Series2

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Frequency Percent

Disagree

Neutral

Agree

Strongly Agree

Total

12

59

109

70

250

4.8

23.6

43.6

28.0

100.0

Chart 5: Brands of shoes offered

Out of 250respondents 199 respondents were male and 51 respondents

were female.

Table 6: Frequency distribution of sex of the respondent

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Brands of shoe offe red

0

50

100

150

200

250

300

1 2 3 4 5 6 7

Series1

Series2

Series3

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Frequency Percent

Male

Female

Total

199

51

250

79.6

20.4

100.0

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Chart 6: Percentage of respondent’s sex

4.4 Respondents Age

The respondent age group was categorized in eight groups. The aximum

number of respondents falls in to the age group of 25-34. The next higher

number was in the age group of 18-24.

Table 7: Frequency distribution of Age of the respondent

Frequency Percent

Under 18

18-24

25-34

35-44

45-54

55-64

25.00

Total

5

79

106

33

20

5

2

250

2.0

31.6

42.4

13.2

8.0

2.0

.8

100.0

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Sex

Male

Female

Tot al

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Chart 7: Age group of the respondent

Table 8: Frequency distribution of comfort of shoes

Frequency Percent

Neutral

Agree

Strongly Agree

Total

11

31

208

250

4.4

12.4

83.2

100.0

Chart 8: Comfort of shoes

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age of the respondent

0

50

100

150

200

250

300

Under 18

18 -24

25-34

35 -44

45-54

55-64 25

Total

Series1

Series2

comfort of shoes

0

50

100

150

200

250

300

Neutral

Agree

Stron

gly A

gree

Total

Frequency

Percent

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Table 9: Frequency distribution of fashionable style

Frequency Percent

strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Total

1

2

36

91

120

250

.4

.8

14.4

36.4

48.0

100.0

Chart 9: Fashionable style

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fashionable style

050

100150

200250

300

stro

ngly D

isagre

e

Disagre

e

Neut ral

Agree

Stron

gly A

gree

Total

Series1

Series2

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Table 10: Frequency distribution of selection of colors, style and sizes

Frequency Percent

Disagree

Neutral

Agree

Strongly Agree

Total

9

14

91

136

250

3.6

5.6

36.4

54.4

100.0

Chart 10: selection of colors, style and sizes

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Se lection of color ,Style and sizes

0

50

100

150

200

250

300

Disagre

e

Neut ral

Agree

Stron

gly A

gree

Total

Series1

Series2

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PART FIVE

FINDINGS OF THE

ANALYSIS, CONCLUSION

AND RECCOMENDATIONS

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FINDINGS OF THE ANALYSIS, CONCLUSION

AND RECCOMENDATIONSD

5.1 Findings

• The name Bata achieved such a position in the customers mind that

whenever they heard the name of Bata, footwear with quality into

their mind. From the survey it is found that when people are asked

about Bata they refer to the quality of shoes those they are using

from childhood.

• Why Bata is the first brand that comes to potential customers

minds when they think of purchasing footwear is because of Bata

has a huge brand presence in Bangladesh due to its long time

operations and its quality is seemed to be reliable. These combine

to from the reason.

• Value for price offered by the store is an important factors to the

respondents those was surveyed. From the frequency distribution it

is found that almost 85% respondent were more or less agree with

the fact that value for price offered by the customer. Base on the

quality of Bata most of the people said Bata’s price is fair

reasonable then the others. Although there are some shoes which

are highly priced by Bata, but those are of push quality. To

maintain the higher quality prices are little high.

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• Bata is a leadership position in the footwear industry for providing

quality products. The finding suggest that, quality of shoes is an

important factor to the respondents those were surveyed. Almost

97% respondents were agree with the fact that quality of shoes has

impact on customer satisfied and they are more or less satisfied

with the quality of Bata.

• The finding suggests that, comfort of shoes is an important factor

on the respondents those were surveyed. Almost 84% respondents

were strongly agreed with the fact that comfort of shoes has impact

on customer. Bata has a strong team who always work for the

development of the products.

• Fashionable style is an important factor to the respondents those

were surveyed. Now a day’s people are more fashion concern that

is way they agreed with the fact that fashionable style has impact

on the customer. From the comparison it is found that Bata is

lacking in these very criteria then the competitors.

• Selection colors, styles and size is an important factors to the

respondents those were surveyed. From the frequency distribution

it is found that almost 90% respondent were more or less agreed

with the fact that selections of colors, style and sizes has impact on

the customer positively related.

• Brands of shoes offered by the store are important factors the

respondents those were surveyed. From the frequency distribution

it is found that almost 72% respondent were more or less agreed

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with the fact that availability of brand shoes is important to them

and has a positive impact on customer. Bata serves to the

customers which rich collection of brand shoes.

• From the study it is found that almost 30% respondents were

agreed and another 30% were indifferent with the fact that

advertising has impact on the customer. Advertising is a

communication tools use to promote the product to the customers.

It has a positive impact on the customers. Bata advertises its

products through different media. In Bangladesh the company is

the highest payer in advertising and communication.

• Finally, from the analysis it has found that Bata provides superior

value to the customers in quality of shoes, comfort ability of shoes,

Value for pricing, fashionable style, selections of colors, brands,

advertising and design all of these bring Bata close to the

customers.

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5.2 Recommendations

From the research it is evident that Bata has a large loyal customer’s base

throughout Dhaka city who are more or less satisfied with Bata’s

products and services. For now it seems that word of mouth and brand

recognition are in a quite secure position. However Bata can take some

steps to improve their customer relationship and to attract new potential

customers.

• Bata fails to reflect up to date fashion shoes for its customers.

Customers think that other competitors always bring fashion shoes

for the customers. If Bata can bring up to date products in the

market place, the sales return of the company undoubtedly

increased into double. It is also recommended that Bata’s market

share will increase by up to date fashion shoes.

• Bata has good brand awareness but their lack of promotional

activity causes many of the new offering unnoticed. To overcome

this difficulty Bata can introduce brochures (direct mail), news

paper ad regarding their new arrivals and price discount scheme.

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5.3 Conclusion

Bata Shoe Company is the market leader in the footwear industry since

its operation in Bangladesh. The name Bata achieve such a position in the

customer’s mind that whenever they heard the name of Bata, a footwear

with high quality comes in to their mind. Bata has been serving its

customer with wide assortment of products for about five decades and

doing it successfully.

There are some emerging shoe stores in Bangladesh which have already

gained customers loyalty in footwear product. The study compared the

Bata shoe company with other emerging shoe brand such as Apex, Bay

emporium, Jenny, Pegasus and many unorganized shoe stores. Bata Shoe

Company compared with these other shoe stores on some factors. The

finding of the study is that Bata Shoe Company is in a better position in

the market place than the competitors except serving customers up to date

stylish and trendy shoes. Bata has a loyal customers group who buy Bata

only for its quality. They do not need to go through any major overhauls,

but a few tweaks here and there can improve upon their current position

and secure them as the market leader in times to come.

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