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Acknowledgement
The special thank goes to our helpful supervisor, Ms,Shehely Parvin , Assistant Lecturer of department of
Marketing at University of Dhaka. The supervision and support that she gave truly help the progression and
smoothness of the business plan. The co-operation is much indeed appreciated.
My grateful thanks also go to our supervisor Razib Jahan Ferdous, Advertising and Promotion Manager at Bata
Shoe Company (Bangladesh) Ltd. A big contribution from you during the month is very great indeed. All
projects and assignments during the program would be nothing without the enthusiasm and imagination from
you.
Besides, this business plan report makes me realized the value of working together as a team and as a new
experience in working at a corporate environment, which challenges me every minute. Not to forget, great
appreciation goes to the rest of Bata Shoe Company staff that helped me from time to time during the project.
The whole program really brought us together to appreciate the true value of friendship and respect of each other
and it was a great pleasure to working with the team.
I would also like to thank my friends especially those who worked together as team member at Bata Shoe
Company BD Ltd .
Last but not least I would like to thank the authorities of Marketing Department and Bata Shoe Company
Limited, for their co-operations in completing our business plan report.
TABLE OF CONTENTS :
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.
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Executive Summary 6 – 8Bata Shoe Company BD.Ltd 9-12
Industry Analysis 12
Specification of BATA in footwear industry 13-14
AREA SERVED 14-15
PRICE 16-17
ADVERTISEMENTS 18-21
Bata Special Product Features 22-24
TARGET MARKET OF BATA 24-26
ANALYSIS OF COMPETITORS 26-27
BATA COMPANY OPERATIONS 28-32
Management of Bata shoe company 33-34
TYPE OF RESEARCH 35 -45
FINDINNGS 46-48
Recommendations 49
CONCLUSION 50
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.
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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
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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 .
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Bata Shoe Company (Ltd.)
Business PlanBata is a private company, also known as “Bata Shoe Organization.” The company was founded in 1984 in today’s Czech Republic . Founder’s name Tomas Bata . The headquarter of the company located in Lasusanne, Switzerland.The company serves its customers worldwide. Main products are footwear, clothing and fashion accessories. It serves more than 1 million customers per day, employing more than 30,000 people and operates more than 5,000 retail stores worldwide .
Bata manufactures and sells a wide range of footwear made from leather, canvas, plastic and rubber. The company sells over 59 million pairs per year throughout the country and in overseas markets such as USA, UK, Europe, Middle East, etc. The company also markets a range of sports shoes, garments and accessories manufactured by others.Footwear sales account for more than 97% of the total revenue. Rubber and canvas footwear contributes 48% of volumes, leather footwear contributes to 30% and plastic footwear accounts for 22% of volumes. In value terms, leather footwear contributes to 58% to turnover, Rubber and canvas footwear contributes 27%, plastic footwear accounts for 12% of total turnover. Accessories, garments, etc account for 3% of turnover. Bata manufactures around 50% of its footwear in its own units, while the rest is outsourced from small-scale manufacturers. While all the plastic footwear is outsourced, in leather company manufactures 63% of the footwear in-house and in rubber and canvas footwear, 61% is manufactured in-house.
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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 Bangladesh :
In Bangladesh Bata started its operation in 1962 . The company was incorporated in1972. Currently it operates two manufacturing facilities – one in Tongi and the another in Dhamrai . Production capacity is 1,10,000 pairs of shoes daily . It has a modern tannery facility with an output of 5 million square feet of leather annually . Bata sells more than 30 million pairs annually.Bata has a firm commitment to ecofriendly business and state of the art Effluent Treatment Plant (ETP) has been set up to provide a pollution free environment for both workers and locality .
Bata has a network of 265 retail outlets located strategically in a different parts of the country . Different types of outlets like :
1. Bata City Stores2. Bata Bazar 3. Bata Family Stores
It has 13 wholesales depots covering Bangladesh . Bata Shoe Company BD ltd. Management :
Managing Director - Chitpan Kansiri
Finance Director - Sohail Aslam
Head of HRM - M. Habibur Rahman
Retail Manager - Sin Kee Lee
Wholesale Manager - Omar Faysal Chowdhury
Production Manager - Minhaz Ahmed Chowdhury
Purchasing Manager - Qayyum Khan
Merchandising Manager- Iraz Hasan
Product Development - Carlos Sanchez
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Main places of business in our country in different towns and cities . Bata has opened a corporate office at Tongi . Bangladesh’s regional headquarter is located in Singapore.
Vision :To make great shoes accessible to everyone .
Mission :
To help people look and feel good
To be the customer’s destination of choice
To attract and retain the best people
To remian the most respected Footwear Company
Bata Bangladesh has already developed its vision up to 2015 showing significant business growth as well as increased market share.
Environmental MissionTo protect our people customers and communities and to protect our natural environment in order to help sustain human development globally .
Industry AnalysisBata shoe organization is the largest manufacturer and marketer of footwear in the world. Its global business comprises of shoe factories, tanneries, engineering plants, quality control laboratories, product development and research centers.
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Bata Shoe Company is the market leader in the footwear industry since its operation in Bangladesh. It established its manufacturing plant at Tongi in 1962 which was the first manufacturing plant to produce shoes on a large scale in East Pakistan (then Bangladesh).
In 1985 Bata Shoe listed in Dhaka Stock Exchange. At this moment, its shares are traded in our two stock exchanges (DSE & CSE). Bata Bangladesh is a public limited company, which has 51- 49% share with the government of Bangladesh.
Growth in comparison to the competitorsBata Bangladesh is the largest player in the footwear industry with around 9-10% volume share and a 60% market-share in the organized segment. BB (Bata Bangladesh) has a market share of 70% in canvas shoes segment while it has a share of 60% in leather shoes. BB manufactures about 10% of the total Hawaii’s sold in the country.
In comparison, the market challenger of footwear industry of Bangladesh “Apex” covers 1.50% of the market share. Another competitor is Liberty which covers 1% share. The international brands such as Nike, REEBOK etc. are gaining market but not much specified.
Non-branded medium ranged shoes are also available in market. They hold a major market share estimated above 15%. They don’t provide any kind of sales campaign, as all of them are bargain stores. The bargain price of them attracts people. The quality of their shoe is not up to the standard in many cases. Low establishment cost, no promotion cost makes them sell shoe at a very low cost.
Specification of BATA in footwear industryBata is playing a pivotal role in developing the leather industry of the country. Bata has a firm commitment to eco- friendly business and a state of the art Effluent treatment plant (ETP) has been set up to provide a pollution free environment for both workers and the locality.
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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.
Identifying Internal And External Factors
Strengths of Bata:
Image of the company Quality Product Differentiated line of product Competitive pricing Strong distribution channel Brand loyalty at mass level
Weaknesses of Bata: Insufficient promotional activities Inability to catch the present trend In time Less competitive price due to high cost structure VAT & Tax barrier
Opportunities of Bata: A segment of our middle-class is coming up with reasonable buying power. Many of them are women
who are decision maker. So the city store concept of Bata can attract them as whole of the family footwear can be available there.
Consumers like differentiated products. They like to shop in a store where they serve the whole family. Business expansion in shoe care products Franchisee opportunity with global brands like Nike, Reebok etc.
Threats of Bata: Political instability affects the supply of raw materials and distribution of finished products Uncontrolled counterfeit of Bata products Rapid market expansion program by organized competitors like Apex.
BATA10 | P a g e
Bata is the number one shoes company in the world. It has presence in over 70 countries and production facilities in 26 countries.It is mainly footwear company but it has two more products & they are clothing and fashion accessory.
AREA SERVED It is served in many areas in Bangladesh. But its has two manufacturing factories at Dhamrai & Tongi. It has density in urban & suburban areas. Because it is very costly & rural people generally don’t wear such costly shoes.
Its location is mainly in shopping area but it has also branch in business area.Here is the location map of Bata in Bangladesh.
Total store in Bangladesh : 264
Total store in Dhaka : 77
Bata has 18 brands:
1. Bata (Baťa in the Czech Republic)
2. Bata Comfit (comfort shoes)
3. Ambassador (classic men's shoes)
4. North Star (urban Shoes)
5. Weinbrenner (premium outdoor shoes)
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6. Marie Claire (women's shoes)
7. SunDrops (women's shoes)
8. Bubblegummers (children's shoes)
9. Baby Bubbles (children's shoes)
10. Safari (desert shoes)
11. Power (athletic shoes)
12. Hush Puppies (premium shoes)
13. Patapata (flip flops)
14. Toughees (school shoes)
15. Verlon (school shoes)
16. Teener (school shoes)
17. Bata Industrials (work & safety footwear)
18. SPARX(sport shoes)
Total employee of Bata in Bangladesh : 1464 (31 dec 2013)
Worldwide coverage of Bata :
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Red zones have already been entered by Bata shoe Organization.
PRICE
Bata shoe Bangladesh Ltd. Has more than 900 lines of shoes in different catagories. They distribute all of these lines of shoes in different parts of Bangladesh through wholesalers, dealers and through their own stores. In the following chart , some of the shoes, its average price are mentioned:
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BATA Best Price Range(TK)Men’s 995-1695Women’s 250-550School 200-330Children 130-195Sport 695-995Non-Sport 50-100
The Best Product: Bata companies offer their customers fresh, fashionable footwear and accessories, designed specifically for the needs of the local market. Their shoes are always well made from quality materials.
The Best Service: Whether in Bangladesh or Italy, their sales associates offer consistently first class service. They are well trained to ensure a proper fit and Bata pledge customer satisfaction.
The Best Value & Quality: Through the efficient sourcing and distribution of Bata products, they can control the cost and quality at every step to ensure value to their customers.
Bashundhara Mall Bata store (city store)
ADVERTISEMENTS
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TAG-LINE: Bata taglines meant for individual products are the key components of advertising. These tag-lines are modified according to demographic profile of consumers. These appear on hoardings at every crucial & congested part of the cities in which Bata retail stores are operating. Everybody understands and connects easily with these simple one-liners like ‘Shoes for all’ , ‘The world moves on your feet’, ’Outdoor is yours’, ‘Get comfortable today’,’ One world ,one Bata’.
PRINT ADS: Bata advertises its products just before launch of any new scheme. This helps in setting up a platform for the new products brand in the minds of customers. The ads are displayed on a full page in the leading newspapers which again is based on the preference of the people. They also attach pamphlets of their ads along with the newspaper.
TV-ADS- Television is one of the best platforms to advertise one’s product. Bata being a family brand, the ads are shown during the prime time slot so the entire family can see it together.
ROAD SIDE ADVERTISING: Bata bill-boards are displayed on prime locations in various cities as a brand building exercise.
CELEBRITY ENDORSER- Bata’s sale doubled as soon as they used Rani Mukherjee as their brand endorser.
SPECIALIZED SHOES: Bata has also launched a new specialized division — Bata Industrials — to offer specialized footwear to various sectors – defense, automobiles, metals, petroleum, construction and
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agriculture. “Bata Industrials is the world leader in high performance safety shoes and has experience of this market segment and access to world class technology, and knowledge on safety footwear.
Promotion:Promotion strategies are concerned with the planning, implementation, and control of persuasive communication with customers. Clear-cut objectives and a sharp focus on target customers are necessary for an effective promotional program. As Bata is a established brand here in Bangladesh they think that they should go on with more and more retail outlets rather than intense advertising. So they limit their advertising into following places:
Billboards Adds on local newspaper Some promotion together with other established brands
Distribution:The physical distribution starts when the raw materials send to the factory and the manufacturing process starts there in Tongi and Dhamrai factory. From there the end products send to the CDC (Central Distribution Center) in Tongi factory. After they receiving the end products then and their the packaging has been done and according to the requirement of different stores, Agencies, dealers and wholesalers the goods has been transferred directly to the distributors through company owned vehicle. There is separate process for own agencies and stores against the wholesalers and dealers. The goods for agencies and stores gone straight to the store headquarter and goods for others gone to the 13 depots around the country from where they collect the goods. In retail, BB operates through a chain of exclusive own and franchise stores. BB’s stores are located in prime locations countrywide. 70% of Bata’s sales are from its own retail outlets. Besides there is a network of about 500 exclusive wholesalers who service about 300 retail stores all over the country. Bata has showrooms, wholesale depots and distribution centres across the country.BB’s major thrust is on middle-class and upper class customers. The concept of `budget stores` has been introduced to remove apprehension in the minds of customers who viewed Bata outlets as being expensive. The company is focusing on the rural markets for volume growth in the low-priced footwear segment .
Tongi Plant
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FUTURE PLANS:To improve the sales and profits, BB is planning to increase penetration by setting up more retail outlets and taking space in shopping malls across the country. Existing retail stores would be upgraded even as wholesale depots would be set up in smaller towns and semi-urban areas. BB’s main efforts will be to streamline the wholesale business. BB’s thrust is on becoming marketing driven firm from a manufacturing oriented company. Steps are also being taken to reduce costs, improve distribution logistics and focus on launch of new products in order to improve the performance of the company.
School shoes of Bata:Bata first earn its name as the most durable shoe manufacturer for school going children. When it first comes to this country it has realized that there is a huge market opportunity for school shoes. Quickly they introduced the “Naughty Boy” shoes. This quickly earns recognition among the parents of that time, as they need a durable shoe that really can last even after lots of rough treatment. From there on, Bata goes on to make Canvas shoes, other black leather shoes, hard top white sneakers for school goers. The most popular brand of school shoes that are now in the market are NorthStar which provides hard and soft white sneakers and the leather black Bata school shoes which are of various designs.
Bubble gummers:The Bubble gummers’ brand of Bata serves the infant to children, according to them 0-13 years of age group. Bubble gummer brand has provided Varity of design and type of shoes for above-mentioned age group of children.
Marie Claire:The Mari Clare brand of Bata is for women. It has more than 100 designs and has different price range of shoes. The price range here starts from Taka 450. In recent times Bata has targeted the young working women who wants reasonably priced, decent design and durable shoes for work and this brand in many cases serves this segment well.
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Sandak:What we called is Sponge Sandle is professionally called as Thongs. Sandles of Sandak brand of Bata serves that very segment of the market. It produces different types of very good quality plastic and Thongs for women. From my survey it has found that it is the most popular shoe of Bata. The pick seasons for Sandak shoes are rainy season when many prefer this shoe, which are washable and decent in looks.
Power:This is a reasonable priced good quality sports shoes and sandle shoes for young male and female. The target segment of Power is teenagers and some parts of the elderly people who need sneaker for walking purpose. The price range starts from 695/- and in many cases not exceed more than thousand taka. According to the buying power this price range is very popular with the general public as durability comes with it as with every Bata footwear.
KingsStreet :The most famous dress shoes of Bata come under the brand name of “KingsStreet”. It has been nice to know that this brand of shoes has been solely made in Bangladesh. The Dhamrai factory of Bata has the machinery to make these shoes, which they established in 1999 at a cost of 1 core taka. These shoes have different price range for different segments of people.
Weinbrenner :This brand of Bata provides trendy, outdoor, rough use footwear for men. This is also a popular brand with the youth of the country. Though the brand is not that cheap but the quality of it is very good. Apart from these Bata has numbers of leather sandles of various designs, sandle-shoes under Bata brand name that serves different segment of the market. Bata also manufacture and market popular brands such as HushPuppy, Dr.Schole’s in this region of south Asia. Bata also have quite new brands for male and female like Bata Comfit, Bata Flexible. According to the Bata officials in Bangladesh Bata have more than 1000 lines of footwear’s here in Bangladesh at present.
Thus Bata’s well known brands include Power, Bubble-Gummers, Marie-Claire, Hawai, Naughty boy, Sandak, North-Star etc. International brands such as Hush Puppies, Nike, Lotto, and Dr Scholl are sold under manufacturing and licensing agreements. The company has more than 1000 shoe designs and caters to all the segments. Over 60% of sales come from the men’s range, while children’s and women’s range account for about 20% each. In women’s segment the Sun-drop range of casual ladies wear in the popular range has done well in the market and registered a strong growth of 500% in F12/2000. Bata also markets sportswear, readymade garments, hosiery, and other footwear accessories like socks, shoe polish, etc. The company also exports its products to countries like Germany, Australia, USA, UK, Holland, Denmark, New Zealand, France and Canada. It exports about 4mn pairs of shoes in a year.
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Bata Special Product Features
LIGHTWEIGHT: In heavy duty footwear design,safety & comfort are usually contradictory concepts. Hard working safety boots by their nature are heavy.Bata Industrials shoes achieve the best balance between lightweight & durable,safe & sturdy shoes which are lightweight and comfortable. All their footwear is designed using latest materials and aim to be as lightweight as possible.
EASY ROLLING SYSTEM: At Bata Industrials they have understood that shoe comfort comes from many different elements. That’s why they have developed the easy rolling system, a small improvement with big advantages. By performing the front of the shoe, the natural motion of the foot is supported in an optimum way. This allows for easier movement and uses less energy for the wearer. Reducing fatigue, saving energy and increasing comfort all of which improves working lives.
FOUR WIDTH SYSTEM: The foundation for a good fitting work shoe is the perfect shoe shape or ‘last’. Yet Bata’s research shows that feet are getting wider with each generation, with that in mind Bata Industrials uses a ‘last’ design with extra space around the front of the foot and instep for greater stability and comfort. They also provide an extensive range of length sizes. In the natural
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shoe collection they go one step further. Most of the models in this collection are available in no less than four width fittings:N,W,XW and XXW. Furthermore,its their request,they can measure each of their shoes individually to provide everyone with a perfectly fitting work shoe solution.
TUNNEL SYSTEM: Every shoe in the Bata Industrials collection has its own unique combination of features. However, there is one innovation that sets every safety shoe from Bata Industrials apart: the ingenious Tunnel system. This is a distinctive notch in the heel of the shoe which adjusts as the heel hits the ground, spreading the pressure over a larger surface area. What is unique about this system is that the wearer’s weight has no effect on the function. This built-in shoct absorber spares the joints and keeps the wearer upright, spreading the load also gives the heel extra stability, preventing fatigue and loss of concentration and so helps to avoid a great number of accidents.
ANTI-SLIP SOLES: It is crucial to select the right shoe sole for the right working environment. This depends greatly on the working surface the amount of surface pollution in the work area and the tasks the worker has to perform. That’s why Bata Industrials has developed several ,purpose made types of outer soles, each with its own profile. In order of slip resistance there are their: Dual density PU-sole, which is anti slip and very light and flexible ,Quattro Tech TPU-sole, which is anti slip in all directions and TriTech plus, a sole manufactured using two densities of rubber. TriTech plus is extra wear resistant and offers maximum protection against slipping, shards, oils, acids and heat(up to 300 degree centigrade). This means that they can provide the right grip on the work floor under all conditions, making the workplace safer.
CLIMATE MANAGEMENT: Bata Industrials uses the latest breathable materials for its footwear, such as innovative textiles and natural nuluct leather for the uppers. Inside they use the moisture absorbing Bata cool comfort, Bata ventAir, Bata Air Xtreme and Dri-Lex for the linings. These high tech materials consist of different layers which together ensure a soft, dry and fresh feel. While at the same time, they effectively transport moisture to the outside of the shoes. The full benefits of climate management are experienced when wearing the right socks, socks which are also suited to the absorption and expulsion of heat and humidity. The pro-guards yarns in their socks are designed perfectly for this, another footwear development by Bata Industrials.
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TARGET MARKET OF BATA
Life in the Bangladeshi countryside is tough. More than half (53%) of the country's rural residents are classified as ‘poor’, with many living on less than $2 per day.
As a consequence, most consumer goods companies have traditionally paid them little heed. Retailing and logistical complications compound this disinterest: Bangladesh's villages tend to have precious few shops and pretty awful roads.
Bata's Aparajitas programme marks an ingenious attempt to get around these constraints. In a reversal of traditional retail models, the family-owned Czech footwear company brings its products to the consumer rather than vice-versa.
Bata works with around 3,000 village-based vendors, who market its products door-to-door. Each vendor receives around 10-15% commission for every pair of shoes sold.
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MARKET SEGMENTATION:BANGLADESH A (14%, includes high disposable income group)
BANGLADESH B (50%, includes people middle class and middle class group)
BANGLADESH C (36%, lower income class group)
DEMOGRAPHIC SEGMENTATION:
Findings: The target market for Bata is all the class of the society i.e. lowers, middle and the upper. Though, Bata is minimizing itself in selling footwear to lower segment, as Chinese products have taken over the market completely. The in-house brands make it possible for Bata to cater to its upper and middle class segment. Bata cater to the needs of male, female and children in equal proportion. The school shoes which Bata sells are most prominent and sell the most. All Bata stores reflect the new ideology like selling premium brands like hush puppies and Marie Clarie etc. As for now, ladies' shoes is the main revenue earner, contributing 30% to the company's revenue, followed by men's shoes, children's shoes, school shoes and sports shoes. The stores offer fresh collections and are visually stimulating. Thus we can say presently that their target customer base is the entire market segmentation.
GEOGRAPHIC SEGMENTATION:
Findings: Bata products are made keeping in mind people & their choices from different
parts of Bangladesh as it has positioned itself as a truly Bangali footwear brand which caters the needs of
all Bangladeshies all across the country. Bata is present across the country through 264 stores. It has
successfully placed itself as an Bangladeshi product. Stores are well available throughout the country. It
sells footwear according to the season as well. They have specialized shoes for monsoon, summer, winter
etc. Bata stores are spread throughout the country. This means Bata is a product for all Indian.
PSCHYCOGRAPHIC SEGMENTATION:
1. Bata’s target group includes all the three sections of the society .They like the brand because its aptly priced and has got a variety of products under its name.
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2. Bata offers quality products at reasonable rate which makes it a clear favorite among the mass.
3. Shoes for all seasons, age groups and gender.
LEARNING AND GROWTHIn order to attain its goals as per the new strategies Bata is consistently putting in quite a lot of effort into training its human resource, especially those at the outlets to provide consistent quality service to its customers so that customers can associate the same experience with which ever outlet they visit of Bata. A culture of empowerment is fostered and younger energetic managers are being appointed given the responsibilities so that they may fill in any leadership void, if created. However overall longer leadership stints for top executives e.g. CEOs would be needed to allow them to take the company towards its goals by implementing the strategy. With these changes in place, Bata would be in a better position to cope with the various challenges posed to it, by its competitors.
ANALYSIS OF COMPETITORS:
APEX:
Most of their shoes are expensive. They don’t provide any school shoes. The sports shoe they bring into the market are mostly imported “Addidas” shoes and quite expensive. In the men’s section the most dominating color is black, in women section-black and chocolate. They provide sophisticated color shoes for children. The most dominating sizes of the men, women and children are the average sizes that are sold in any Bata store. They remain open on everyday of the week except any government holiday. Opening hour is 9:00AM-10:00PM. They generally implemented new design after every 6 months according their employees. The most successful sales campaigns are 60% off on specific design. Their market share is about 1.50% in Bangladesh.
LIBERTY:
Here in this shoe stores the average price of the shoes are also expensive. Their average retail price is 600+. They also have the same kind of offerings in their respective divisions. Usually the normal color and size that are sold elsewhere are also sold here. They remain open everyday except of any government holidays. They open at 10 in the morning and remain open up to 10 in the evening. After 3-6 months they brought new design shoes in the market. The most effective sales campaign is 40-60% discount on specific design shoes. The market share of Liberty shoe is about 1%. They are in the market for about 13 years as a franchisee they are from India.
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REEBOK:
They only sale sports shoes and some children shoes who are in their teens. The price of all shoes is high 1200+. The color and design of their shoes are of high quality. Reebok brings different types T-shirts, tracksuits and non-shoes items, which are quite expensive. After every 1-2 months new design of shoes comes in their store. 20-25% discounts on specific design are their most effective sales campaign. About .10% market share Reebok is quickly gaining ground and getting attention of the brand conscious segment of the country.
NIKE:
Same as Reebok, Nike only offers high quality sports and some children shoes. Their shoes are also expensive sports shoes ranging from 2000-5000, which are sold most. Best-sold non-shoe items such as T-shirt, tracksuits are ranging from 750-2250 taka. They open their store everyday of the week. They brought new design in the market after every 3 months. They don’t have any sales campaign up to now. Same as Reebok but their market share is less than their international rival as they have enter Bangladesh market for 6 or 7 years.
PAGASUS:
They made their name as sports shoe manufacturer. After that they come up shoes for both the male and the women. Their best-sold price range is 800-1200 for men, 550-750 for women and 300-500 taka shoes for children. Their best sold sports shoes are ranging from 700-900 taka. They open their store everyday from 9:00-10:00 in the evening. After 2 months they bring out at least some kind of new design in one of their segments. Most effective sales campaign up to 20% discount. Their market presence in the country is over 25 years but not doing that well. Market share is only .50% mainly the quality of the shoe is moderate.
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BATA COMPANY BANGLADESH LTD. Operations Of Bata BD Ltd.
In Bangladesh, Bata started its operation in 1962. The company is one of the largest tax–paying corporate bodies contributing Tk. 1.2 billion (year 2009) which represents approximately 70% of tax paid by the entire footwear sector of Bangladesh.
BATA BRANS LOGO :
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-------Facilities-----Location :-( addresses, parking, floor plans)Currently Bata Shoe Company (Bangladesh) Limited operates two manufacturing facilities – one in Tongi and the other in Dhamrai. With a production capacity of 110,000 pairs of shoes daily, the company also has a modern tannery facility with an output of 5 million square feet of leather annually.
Annual shoe sales currently stands at slightly more than 30 million pairs with a turnover for the year 2009 of Tk 5 billion.
The City Stores incorporate spacious floor space allowing a comfortable shopping experience, modern interior décor 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 265
retail outlets located strategically in different parts of the country.
Improvements:-(plans, funding, budget)Bata has 13 Wholesale depots covering Bangladesh. Under these depots 453 RWD (Registered Wholesale Dealers) and 670 DSP (Dealer Support Program) stores are operating.Bata Bangladesh has already developed its vision up to 2015 showing significant business growth as well as increased market share. To improve the sales and profits, BB is planning to increase penetration by setting up more retail outlets and taking space in shopping malls across the country. Existing retail stores would be upgraded even as wholesale depots would be set up in smaller towns and semi-urban areas.
BB’s main efforts will be to streamline the wholesale business. BB’s thrust is on becoming marketing driven firm from a manufacturing oriented company. Steps are also being taken to reduce costs, improve distribution logistics and focus on launch of new products in order to improve the performance of the company.
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Potential expansion & proximity to market unique aspects:-In 2014, their retail channel sold 9.5 million pairs of shoes with a turnover of the 4.9 billion which is 12% growth against last year. To achieve this outstanding growth in spite of political unrest, company took different initiatives like product innovation, aggressive marketing programs, market expansion, human resource development, operational efficiency and team work.
In expansion program, company added 16 new stores.They also renovated 13 stores. More than 86 new lines were introduced before the biggest festival eid-Ul-Fiture.
Customer Services(Service attitudes, compliant process,feedback mechanism )Personalized Service:-Qualified and enthusiastic sales associates who take customers’ satisfaction to heart. In many
countries customer service goes beyond the stores with home deliveries, orders made possible via catalogues, the web or even call centre.
Their Guarrantee :-
Bata shoes are manufactured with the utmost Care. Stringent quality control is always
maintained. However, despite this high quality assurance there can be the odd, defective pairs among the millions we manufacture and sell. In such a case, we do stand by our product according to the following conditions:
• In case of any problem simply return the pair of shoes within 30 days of purchase.
• The purchase must be supported by the cash memo.
• The shoes must be returned to the same store of purchase.
• Adjustment will be entertained only against manufacturing defects.
• It must be ascertained that shoes have been appropriately used.
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• No Cash refund will be applicable.
• 'Factory second' or shoes purchased at reduced price are not included in this guarantee
policy.
• They offer free repair services in case of minor defects.
• Customer must preserve the cash memo for and settlement. Proof of purchase is required for exchange.
Customer service center -:They are happy to help customer. Just use one of these contacts to let them know.
Phone: +880 2 9810501-5
There are basically four categories in Bata Bangladesh of which a merchandiser who is basically the head of the category has a distributor, who is responsible of distribution of the merchandise to the right place at the right time and the right amount. A designer also under the category merchandiser who is responsible for designing new shoes according to the market needs and the advise of the merchandising officer.
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Other Operational issues(Safety & health, Insurance & legal, license , environmental concerns & permits)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 environmental concerns, scholarship programs, charity contributions etc – Bata has always supported individuals and communities in need.
Partnerships with other voluntary and charitable organizations is another prominent feature of Bata’s corporate social responsibility. Bata, in partnership with CARE, extends assistance to over two thousand rural women in order to become independent entrepreneurs in the Rajshahi, Comilla and Chittagong division selling shoes from door to door under its Rural Sales Programme.
They give insurance opportunity for every of it's workers and it's goods & materials. They take the licences of every of their products before distributing it to the target market.Since its inception, Bata Shoe Company (Bangladesh) Ltd. has strived towards one goal –customer satisfaction. With the vision of building a worldwide family of satisfied customers and dedicated workers the legacy of Tomas Bata continues strong and unabated to this day – the tradition is safe.
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Management of Bata shoe company (Bangladesh) Ltd.
Name Designation
Mr. Muhammad Qayyum Company Manager
Mr. M.Habibur Rahman Head of Human Resource
Mr. Bishwajit Roy Retail manager
Mr. Minhaj Ahmed Chowdhury Production Manager
Mr. Yee Siew NG Chief Financial Officer
Mr. Ruhul Amin Molla Wholesale Manager
Mr. Qayyum Khan Mahbub Purchasing Manager
Mr. Carlos Arturo Zuluaga Sachez Product Development Manager
Mr. Iraz Ahmed Chowdhury Merchandising Manager
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ORGANIZATION CHART :
Type of Research
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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.
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.
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
Easy to understand questions
Bata Footwear compare with other company :
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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.
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
Bata shoe co. compare with other company
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Bata’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.
Frequency distribution of Bata’s quality v/s price :
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Bata compare w ith other
020406080
100120140160180
Frequency Percent
company
Bat a
Apex
Bay
Libert y
Shamrat
Rado
Frequency Percent
Expensive for the quality
Fair and reasonable
Medium
Low
Total
101
141
6
2
250
40.4
56.4
2.4
.8
100.0
Bata’s quality v/s price
Quality of shoes
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40.4
56.4
2.40.81
2
3
4
5
6
7
Frequency distribution of Quality of shoe
Frequency Percent
neutral
Agree
Strongly Agree
Total
7
24
219
250
2.8
9.6
87.6
100.0
Quality of shoes
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quality of shoe
0
50
100
150
200
250
300
neut ral Agree St ronglyAgree
Tot al
Series1
Series2
Brands offered
Frequency distribution of brand of shoe offered :
Frequency Percent
Disagree
Neutral
Agree
Strongly Agree
Total
12
59
109
70
250
4.8
23.6
43.6
28.0
100.0
Brands of shoes offered
Out of 250respondents 199 respondents were male and 51 respondents were female.
Frequency distribution of sex of the respondent
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Brands of shoe offe red
0
50
100
150
200
250
300
1 2 3 4 5 6 7
Series1
Series2
Series3
Frequency Percent
Male
Female
Total
199
51
250
79.6
20.4
100.0
Percentage of respondent’s sex
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.
Frequency distribution of Age of the respondent
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Sex
Male
Female
Tot al
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
Age group of the respondent
Frequency distribution of 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
Frequency Percent
Neutral
Agree
Strongly Agree
Total
11
31
208
250
4.4
12.4
83.2
100.0
Comfort of shoes
Frequency distribution of fashionable style
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comfort of shoes
0
50
100
150
200
250
300
Neutral
Agree
Stron
gly A
gree
Total
Frequency
Percent
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
Fashionable style
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fashionable style
050
100150
200250
300
stro
ngly D
isagre
e
Disagre
e
Neutral
Agree
Stron
gly A
gree
Total
Series1
Series2
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
selection of colors, style and sizes
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Selection of color ,Style and sizes
0
50
100
150
200
250
300
Disagre
e
Neutral
Agree
Stron
gly A
gree
Total
Series1
Series2
FINDINGS OF THE ANALYSIS, CONCLUSION AND RECCOMENDATIONSD
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
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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.
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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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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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