Marketing Mix OF Bata Shoe Company

EXECUTIVE SUMMARY

The Footwear Industry in Bangladesh has started since the colonial era, although its modernization took place only in the late 1980s. When Bata Shoe Company established its manufacturing plant at Tongi in 1962, it was the first manufacturing plant to produce shoes on a large scale in East Pakistan. The local footwear industry is experiencing an annual growth rate of 21 percent, according to leather goods and footwear manufacturing and exporters association of Bangladesh.

Bangladesh is set to emerge as the next manufacturing hub for the global footwear industry. The cheap labor is prompting top manufacturers to relocate their factories in the country. The good news is that a number of foreign investors as well as buyers have already shown interest in 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 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 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

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.

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 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.

Footwear Industry in Bangladesh

The Footwear industry in Bangladesh has started since the colonial era, although its modernization took place only in the late 1980s. During the British period, there was no Footwear manufacturing firm producing on a mass scale in East Bengal. However a traditional cottage type Footwear industry with limited production facilities existed in a skeleton from in the district towns during the time. Various types of footwear were imported, mainly from Calcutta. After the partition of Bangle in 1947, footwear was imported from West Pakistan.

When Bata Shoe Company established its manufacturing plant at Tongi in 1962, it was the first manufacturing plant to produce shoe on a large scale in East Pakistan. In 1967, Eastern progressive shoe industries (EPSI) established its production plant. It began exporting footwear to USSR, Czechoslovakia and England. Both Bata and EPSI held major shares in the local footwear market. The footwear industry suffered a major setback during the war of liberation but was rehabilitated after independence. Now footwear manufacturing units have recently been established. Among them are Apex footwear, Excelsior shoes, and paragon leather and footwear industries.

Japan and Germany are now the biggest markets for Bangladeshi footwear but US buyers are increasingly showing interest in sourcing from Bangladesh. Bangladesh could have a billion dollar footwear export sector by 2013, claim local shoe manufactures on the basis of both the current growth in shipments and the increased production capacity in factories under construction. If there assessment is correct, in the three year period the level of exports can increase five fold from the $205 million worth of shoes that were exported in the last fiscal year that ended in June 2010.

Multitude of Products

Bangladesh has a host of potential products that can earn substantially large amounts of foreign exchange, if only the necessary patronage from the overseas buyers is given from the sack of expending the countries export base and thereby reach a sustainable status for the countries export trade.

Recently, a new opportunity has opened up to further diversify the range of 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 the export of footwear and other leather products in the European and other market.

Manufacturing hub

Bangladesh is set to emerge as the next manufacturing hub for the global footwear industry. The cheap labor is promoting top manufacturers to relocate their factories in the country. The good news is that a number of foreign investors as well as buyers have already shown interest in 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.

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, BlueOcean footwear, due to go into production by February 2011, Apex will get involved with a turnover of nearly $200 million of footwear export by 2013.

Growth rate    

The local footwear industry is experiencing an annual growth rate of 21 percent, according to a spokesman from another apex organization, leather goods and footwear manufacturers and exporters association of Bangladesh (LGFMEAM). However, to continue the trend, the present level of growth has not only to be attained; it also has to be taken to a still higher level, if Bangladesh is to match the success of its immediate competitors Vietnam.

According to a newly released statistics from the export promotion Bureau of Bangladesh footwear exports from the country grew from US $61 million in the period of July- November 2007 to $85 million in the same period of 2008, recording a growth of 39 percent. In the first fore months of the 2010 fiscal 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.

Brief history of Bata Shoe Company

Bata Shoe Company was founded by the famous entrepreneur Mr. Tomas Bata who blew the wind of change in the footwear industry in 1894. The company was started from zlin, Czechoslovakia, now known as the CzechRepublic. From that day onward Bata Shoe Company has been the largest manufacturer and marketer of footwear in the world. The global business of Bata comprises of shoe factories, tanneries, engineering plants, quality control laboratories, product development and research centers.                                                                                        

Bata has developed a strong distribution channel all over the world through the establishment approximately 6,300 retail outlets, 10,000 franchise and thousands of deports and dealers. More then 50,000 people are directly involve in the production and selling of over 300 million pairs of shoe each year. Bata Shoe Company manages a retail presence in 55 countries, and run 40 production facilities across 26 countries. Bata international headquarter is located in Switzerland which was previously located at Toronto, in Canada.

Bata today

. Serve 1 million customers per day

. Employee more then 50,000 people

. Operates 5000 retail stores

. Manages a retail presence in over 70 countries

. Run 27 production facilities across 20 countries

Bata Business

Bata shoe organization companies are involved in every facet of the business of   shoes. Throughout the world, Bata services customers from the store sales floor to the factory floor.

  • Retailing

Bata shoe organization companies have built successful retail store concepts to satisfy changing customer tastes and needs. Each store futures merchandise targeted to different lifestyles and people. The merchandise ranges from footwear to clothing and goods complementing shoe offerings. Sensitivity to and satisfaction of customer wants and needs has allowed the Bata shoe organization (BSO) to became a world leader in footwear.

  • Manufacturing

Tomas 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.

  • Brands & Product Development

Throughout the world, the Bata ® brand distinguishes well made and well priced footwear. Many core articles for Bata ® branded collections are designed in product development centers in Italy, the Far East and Canada. Designers and merchandisers in Bata shoe ionization companies broaden the collections by developing complementary styles to reflect tastes, budgets and climates within their own market. Strict quality controls govern the selection of materials and all production stages.

Business units of Bata shoe company

Bata is operating business in five business units such as Europe, Asia pacific, Latin America, North America, and Africa. Bata announces its worldwide presence through these five business units. 

Bata coverageBata shoe company (Bangladesh) Ltd.

Bata shoe organization started its operation in Bangladesh in 1962. The company was incorporated in1972. The company is affiliated to the Bata shoe company, the largest footwear manufacturing and marketing organization.

According to Bata Bangladesh website (2010) it is mentioned that currently, Bata Bangladesh operates 2 manufacturing plants at Tongi and Dhamrai, have production capacity of around 1,10,000 pairs of shoes daily. It has a modern tannery with the latest technological facilities to process 5 million square feet of leather yearly.  The tannery is equipped with a high tech effluent treatment plant ensuring a pollution free environment for booth workers and the environment. 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 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

Through maintaining the quality. In recent times Bata Bangladesh has lunched more then 180 new designs for different brands in their men, women, children and infant Categories.  Eventually they have received excellent responses from their various target groups on the new designs.

Customer service

  • personalized service

Qualified and enthusiastic sales associates are engaged who take 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

Mission & vision

Bata Shoe Company has been successfully running for years with a mission and vision at the heart of all its operations.

 Mission

“Introduction of a strong shoe line targeted to various market segments to maintain leadership through increased market share.”

Vision

“To provide good quality shoes at an affordable price by keeping in mind the comfort that needs to be there and providing new designs with it.”

Environmental Mission

To protect our people customers and communities and to protect our natural environment in order to help sustain human development globally.

Bata business Types

Bata business policy is the segmentation of retail outlets according to profiles of different market segments and the introduction of novel concepts. Bata retail store are categorized into four types:

  • City Stores

Bata city stores offer the urban customers a wide variety of current fashion footwear and accessories. There are 25 city stores in Bangladesh, 16 in Dhaka metropolitan area, other in Chittagong, Sylhet, and in Mymensingh metropolitan area. These stores are established in prime locations, and provide a high level of customer service, exclusive shoe lines with complementary accessories and contemporary shopping environment are to discerning shoppers.

Shoping mall

  • Family Stores

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.

SWOT Analysis of Bata shoe company (Bangladesh) Ltd

Strengths:

  • High quality products
  • Strong Brand image
  • Extensive product lines
  • Strong and mass distribution network
  • Wide range of associated brands
  • Skilled management team
  • Modern manufacturing facilities
  • Potential target market
  • Loyal customers

Weaknesses:

  • High price
  • More emphasize on quality rather than design
  • Lake of promotional activities
  • Less effort to attract new customer
  • High cost structure
  • High import duties
  • High administrative cost
  • Vat & tax barrier

Opportunities:

  • Wide assortment of products offered
  • Better customer service
  • Rise in export
  • More emphasize on product quality and design
  • Strong retail store network
  • Neat & clean retail outlets
  • Trained salesmen

Threats:

  • “Apex” is considered the biggest threats
  • potential new brands like Bay Emporium
  • Counterfeiting of Bata shoes in uncontrolled locations
  • Consumer perception regarding high price 
  • High price due to high production cost
  • Disruption of consistent supply
  • Switching new generation to trendy products

About Bata Bangladesh:

  • 2 Manufacturing Plant
  • 172 Retail stores
  • 52 Agencies
  • 13 Depot
  • 393 Wholesales
  • 562 Dsp
  • Earns 72 million taka in export (yearly)

Functional Department of Bata

The full activities the Bata shoe co (BD) Ltd are composed of following major functional department activities.

 

  • Human Resource
  • Merchandising
  • Purchasing
  • Costing & Efficiency
  • Manufacturing
  • Lab & Quality Assurance
  • Advertising
  • Management Information System (MIS)
  • Retail
  • Wholesale
  • Finance & Administration
  • Central Distribution Center (CDC)
  • Associates Business Unit (ABU)
  • Engineering
  • Tannery
  • Product Development
  • Direct Sale & export

MARKETING MIX OF

BATA SHOE CO (BD) LTD

Introduction

Footwear industry is one of the promising sectors in Bangladesh. However, the country has already been exporting finished leather and different kinds of leather products to the overseas market. These products also enjoyed considerable demand because of their high quality. The main reason for this was the natural advantages of leather that Bangladesh produces. Recently, a new opportunity has opened up to further diversify the range of 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 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.

Background of the Study  

Bata Shoe Company is the market leader in the footwear industry since its operation in Bangladesh. The name Bata achieved such a position in the customers mind that whenever they hared the name of Bata, footwear with high quality comes into their mind. Bata has been serving its customers with wide assortment of products for about five decades and doing it successfully. Bata offers a number of product lines to the prospective consumers in the existing market. Bata has a truly international team whose diversity of ideas to develop new style footwear, shocks, sneakers, etc. Bata has introduced huge product line of men footwear shoes, sandal, sneakers, shocks, women footwear, 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.

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.

However, the country has already been exporting finished leather and different kinds of leather products to the overseas market. These products also enjoyed considerable demand because of their high quality. The main reason for this was the natural advantage of leather that Bangladesh produces. Despite the high quality6 of local animal hides both in raw and finished from, Bangladesh was still trailing behind Vietnam and china in the export of footwear and other leather products in the European and other market.

Research problem

Marketers make marketing mix decisions for influencing their trade channel as well as their final consumers. Ones they understand these groups marketers make or customize an offering or solution.

  • To find out the market prospect or potential of Bata shoe company (BD) Ltd.
  • To determine the customer & service.
  • To determine the effectiveness of the competitors price.
  • To determine the effectiveness of current promotional activities.

Research Objectives

The research objectives are broken down in to broad and specific objectives which are enumerated below:

Broad Objective

The board objective of the study is to assess the customer priority of shoe industry in Bangladesh focusing on Bata shoe company (BD) Ltd. This has been broken into following specific objectives.

Broad Objective

The board objective of the study is to assess the customer priority of shoe industry in Bangladesh focusing on Bata shoe company (BD) Ltd. This has been broken into following specific objectives.

Specific Objectives

  • To examine the current state of Bata shoe company (BD) Ltd in the market
  • To examine the perception about Bata shoe in consumer mind
  • To analyze the impact of Quality shoes for customer
  • To analyze the impact of Comfort for customer
  • To analyze the impact of value for price offered
  • To analyze the impact of fashionable style offered
  • To analyze the impact of brands of shoes offered
  • To analyze the impact of selection of colors, style and size
  • To analyze the impact of advertising on customer
  • To analyze the impact of placement

Scope

To achieve the objectives it is needed to collect data form customer within the country. But for time, cost and other limitations. For achieving the objectivities the study will be focused on the quality product, price, promotion, placement conformability and other criteria of Bata shoes as well as the completive position with Apex, Bay and other competitors. While doing so it will also identify the limitations and the weakness of the issue.

Benefit of the Study

To survive in an ever growing industry, it is very important for any company to know its customers level of satisfaction to the products and service provided by the company. This research will facilitate Bata Shoe Company to know the present market situation and what customer wants from company. This information can help to design future strategic to retain existing the customers and obtain new one.

Literature review About Marketing Mix

What is the marketing mix?

The marketing mix is probably the most famous marketing term. Its elements are the basic, tactical components of a marketing plan. Also known as the Four 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.

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 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

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 tools is designed to deliver a customer benefit. A complementary breakdown of marketing activities has been proposed that centers on customers. Its four dimensions (Siva) and the corresponding customer questions these are designed to answer are;

1. Solution: How can I solve my problem?

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

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

4. Access: Where can I find it?

Winning companies satisfy customer needs and surpass their expectations economically and conveniently and with effective communication. Two key themes of integrated marketing are that (1) many different marketing activities communicate and deliver value and (2) When coordinated marketing activities maximize their joint effects. In   other words marketers should design and implement any one marketing activity with all other activities in mind.

For example, using an integrated communication strategy means choosing communication options that reinforce and complement each other. A marketer might selectively employ television, radio and print advertising, public relations and events, and PR and web site Communications, so that each contributes on its own as well as improving the effectiveness of the others. E ach communications   must also deliver a consistent brand image to customer at every brand contact. Applying an intergraded channel strategy ensures that direct and indirect channel, such as online and retail sales, work together to maximize sales and brand equity. 

Current Marketing Mix

Product

Bata offers a number of product lines to the prospective consumers in the existing market. Bata has truly international team whose diversity of ideas to develop new style footwear, shocks, sneaker, etc. Bata has introduce  huge product line of men footwear – shows, sandal, sneakers,  shocks, women footwear, 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 product more complex than you first thought? The Three Levels of a Product.
  • The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline).
  • The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC). However, CLC focuses upon the creation of and delivery of lifetime value to the customer i.e. looks at the products or services that customers NEED throughout their lives.

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

  • The product has to have the right features – for example, it must look good and work well.                                                                                                                                                
  • The price must be right. Consumer will need to buy in large numbers to produce a healthy profit.
  • The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation.
  • The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output.

For example, a company like 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.

Placement

Bata has a network of 250 retail outlets located statically in different parts of the country. This extensive retail network is also supplemented by an equally extensive network of deports and dealers. The retail outlets are segmented according to the profile of customer and different market segments. According to the segmentation the three different types of outlets are 

  • Bata City: The city stores incorporate spacious floor space allowing a comfortable shopping experience, modern interior enriched with novel shelving systems, fittings, fixtures and lighting. The city stores are established in prime location of metropolitan city. Among the 25 city stores 16 are established in Dhaka and other in major business area.
  • Bata Bazar: Bata Bazar holds the largest display of 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.

Although figures vary widely from product to product, roughly a fifth of the cost of a product goes on getting it to the customer. ‘Place’ is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers.

Price

Bata use price- quality leadership approach. They set the price based on value. In some country they target high quality niche and in some country price sensitive segment. Every where they set the price based on value they delivered.

Bata follow geocentric pricing techniques. According to the demographic features the local pricing for Bata shoes for men, women and children is given bellow:

CategoryHighest [BDT]Lowest [BDT]
Men Dress6990990
Men Summer4490550
Women Dress54901390
Women Summer2490690
Athletic footwear139012000
Children footwear2901290
Sandak/Sandals12090

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 promotional activities are almost alien to normal business activities.

The cost associated with promotion or advertising goods and services often represents a sizeable proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organization to develop and build up a succession of messages and can be extremely cost-effective.

Findings

  • The name Bata achieved such a position in the customers mind that whenever they heard the name of Bata, footwear with quality into their mind. From the survey it is found that when people are asked about Bata they refer to the quality of shoes those they are using from childhood.
  • Why Bata is the first brand that comes to potential customers minds when they think of purchasing footwear is because of Bata has a huge brand presence in Bangladesh due to its long time operations and its quality is seemed to be reliable. These combine to from the reason.
  • Value for price offered by the store is an important factors to the respondents those was surveyed. From the frequency distribution it is found that almost 85% respondent were more or less agree with the fact that value for price offered by the customer. Base on the quality of Bata most of the people said 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.
  • 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 with the fact that availability of brand shoes is important to them and has a positive impact on customer. Bata serves to the customers which rich collection of brand shoes.     
  • From the study it is found that almost 30% respondents were agreed and another 30% were indifferent with the fact that advertising has impact on the customer. Advertising is a communication tools use to promote the product to the customers. It has a positive impact on the customers. Bata advertises its products through different media. In Bangladesh the company is the highest payer in advertising and communication.
  • Finally, from the analysis it has found that Bata provides superior value to the customers in quality of shoes, comfort ability of shoes, Value for pricing, fashionable style, selections of colors, brands, advertising and design all of these bring Bata close to the customers.

Recommendations

From the research it is evident that Bata has a large loyal 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.

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.