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C 501 Business Communication

Bata Shoe Company Bangladesh Ltd : A Business Review

Submitted To :

Professor Syed Munir Khasru


Institute Of Business Administration University of Dhaka Prepared By : Group 11 Section B, BBA 19th batch Date of Submission: 27nd December, 2011

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Group Profile

Group 11 Section B, BBA 19th batch Syeda Rizwana Zafri 61 Muhammad Saeedul Alam 81 Kazi Hirok Al-Arafat 92 Moshfeq Ur Rahman 108 Naseef Us-Sakib 110

27 December 2011 Syed Munir Khasru Professor Institute of Business Administration University of Dhaka Subject: Letter of Transmittal Dear Sir, We are pleased to present our report on Bata Shoe Bangladesh: A Business Review after a long and rigorous team work. We have tried to integrate the knowledge that you have imparted upon us regarding business communication into various topics in the report. We have explored different aspects of the footwear market and Batas market overview and related them with the topics. We hope that you would be kind enough to look into our report .We will be glad to answer any of your queries regarding the study and report. Sincerely Yours Group 11, Section B BBA 19th batch, IBA, DU

Syeda Rizwana Zafri

Muhammad Saeedul Alam

Kazi Hirok Al-Arafat

Moshfeq Ur Rahman

Naseef Us-Sakib

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Acknowledgement

Thanks to Allah. Writing this report has been a great experience to us. It has added a lot to our practical knowledge while we were working on this report. In writing this report, we benefited from the inputs of many talented and dedicated people. First of all, we owe profound gratitude to our course teacher Mr. Syed Munir Khasru for his guidelines on how to accomplish the various aspects of this report which actually proved substantial. Then, we sincerely thank Mr. Iraz H. Siddiqui, the Merchandising Manager of Bata for giving us so much time and helping us in writing the report with information. And, last but definitely not the least; it was our group effort that made the report writing possible. Whatever we have learned while making this report; has made indelible impression on our minds. It is our conviction that this learning experience will always be a source of help in our educational life. Thanks to all.

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Executive Summary
The report on Bata Shoe Bangladesh: A Business Review explores the footwear market and the overall market situation of Bata along with various aspects of its market strategies. The Bata Shoe Organization was founded in 1894 by Czech businessman Tomas Bata in the city of Zlin, of then Czechoslovakia. It is now the worlds largest manufacturer and marketer of footwear operating across the globe. In Bangladesh, Bata started its operation in 1962. It is one of the largest taxpaying corporate bodies of Bangladesh at present contributing around 1.2 billion approximately. 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, Batas Annual shoe sales currently stands at slightly more than 30 million pairs with a turnover of Tk 5 billion (approx) per year. From the very beginning Bata has focused on Quality of its products and services which has led to customer satisfaction. Bata uses multiple segmentation bases and targets a wide range of customers with their broad product line. They use good-value pricing strategy and make sure they have something to offer for every member in the family. Bata has always been at the top in the footwear market possessing 30-35 % market share in the overall footwear market and 60-65 % market shares in the branded footwear market of Bangladesh. By introducing internationally renowned brands such as Bata Comfit, Marie Claire, Hush Puppies, Scholl, Nike, Bubblegummers, Weinbrenner etc, Bata has caused momentous change in branded shoe marketing in Bangladesh. Its brand image and product quality have given it a competitive advantage over all other footwear manufacturers in the market. Bata implements quite an effective marketing strategy for advertisements and promotion of its products using major mediums. Still, the amount of media exposure for advertisements and promotional activities is insufficient in comparison to its business span. Moreover, Bata has not exploited the new mediums of advertisements like internet. Bata has been changing its business policy to meet the changing needs of time, for instance, the segmentation of retail outlets according to consumer profiles and the introduction of novel concepts such as Bata City Stores. Supporting nationwide sports sponsorships, helping disabled persons, addressing environmental concerns, scholarship programs, charity contributions etc have been part of Corporate Social Responsibility of Bata. These activities have been profitable for Bata and further participation is thought to have a good effect on sales growth. Increase in variety and designs of products, extensive campaigning can do better for Bata as research reveals. Bata has been quite successful in implementing its marketing strategies. Its brand image along with

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uncompromising quality and reasonable pricing have put Bata shoes in a key position to appeal to different segments of consumer.

Table of Contents

1. Introduction 1.1 Origin of Report 1.2 Goal 1.3 Objectives 1.4 Scope 1.5 Methodology 1.6 Limitations 2. Footwear Market Background 2.1 Overview of Footwear Market in Bangladesh 2.2 Competitive Review of Footwear Market 3. Bata Product Background 3.1 Origin of Bata 3.2 Position of Bata in Footwear Market 3.2.1 Market Mapping 3.2.2 Batas Sales and Growth 3.3 SWOT analysis 4. Bata- Marketing Strategy 4.1 Product Positioning and Differentiation 4.2 Segmentation, Target Market and Product Line 4.3 Pricing Strategy 4.4 Distribution Strategy 4.4.1 Retailer Stores and their placing 5. Bata- Promotion Mix 5.1 Advertising and Promotional Activities 5.2 Advertising and Promotional Strategies 5.3 Corporate Social Responsibility

01 01 01 01 01 01 02

02 02

03 04 05 05 07

08 08 12 12 13

14 15 15
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5.4 Management of Sales force

16

6. Effectiveness of Batas Marketing Strategy 6.1 Effectiveness of Batas strategy 6.2 Effectiveness of Advertising and Promotional Activities 7. Prospect of Bata 8. Conclusion 9. Appendix

16 18 19 21 22

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List of figures and tables


Figure 1 Figure 2 Figure 3 Figure 4 Table 1 Table 2 Table 3 Market Mapping of Bata Bata Outlets in Bangladesh Placing Of Retail Outlets Sales Condition in a year Sales Growth of Bata Profit Margin of Bata Unappropriated Profit 05 12 13 18 05 06 06

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1. Introduction
1.1 Origin of Report:
This report on Bata Shoe Bangladesh has been assigned to us by our C 501 Business Communication course instructor Professor Syed Munir Khasru of the Institute of Business Administration, University of Dhaka. In this report, we have tried to integrate our theoretical knowledge gained from the class lectures and textbooks into the various aspects of market strategies of the footwear market and Batas overall marketing strategies. The applications of different theoretical concepts in this report have enriched our knowledge and triggered our interest for the topic.

1.2 Goal:
To analyze the overall market situation and marketing strategies of Bata.

1.3 Objectives:
Analyze the market situation and market strategies of Bata Synchronization and analysis of data and information on the basis of theoretical knowledge Evaluate and Remark

1.4 Scope:
Bata has been a successful brand name in footwear market of Bangladesh for years. We thought that by analyzing its market position and marketing strategies we will be able to reach some conclusion and remark on its strategies.

1.5 Methodology:
We have conducted both primary and secondary research for collecting the data and information used in this report. Primary Data Source: primary data used in the report have been collected through direct interviews and discussions with officials of Bata Shoe Bangladesh and field visits. A survey has also been conducted for consumer reviews of the products and services. Secondary Data Source: secondary data for the report have been collected from websites, annual reports of Bata, websites and reports of other footwear manufacturers and books of business communication and marketing.

1.6 Limitations:
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In spite of having some limitations, we have tried our level best to live up to your expectations in formulating this report. The main limitation was the time constraint. There were a lot of things that could have been done, but remained undone due to unavailability of enough time. Unavailability of information due to its confidential nature is one of the limitations. As information like raw-material price, wholesale price are confidential, the concerned authority did not want to reveal them. We have been made a formal group for working on the report. Due to difference in opinions and perspective, we had some conflicts. But, afterwards, we went for cohesion and worked together for formulating the report.

2. Footwear Market Background


2.1 Overview of Footwear Market in Bangladesh
The retail footwear market size is approximately BDT 15billion and estimated to be expanding at a rate of 20% per year, according to newspaper reports. With 150mn people in Bangladesh, demand for quality footwear is high. At present, 90% demand for footwear is met by the local companies. The industry is fragmented; with millions of small shoe manufacturing companies that produce footwear in small scale. However, large brands still compose a significant portion of the national footwear market. With increase of per capita income to $750 in 2010 from $ 676 in 2009 and population growth of around 6% per year, the footwear market is bound to expand in the future.

2.2 Competitive Review of Footwear Market


The major competitors of Bata are not the branded companies. Indeed, according to Batas current Merchandising Manager, Mr. Iraz H. Siddiqui, the branded companies in footwear market are still immature. But it is expected that they will gain maturity in near future and try to take a good share of the market. The toughest competitor of Bata is the local non-branded street market who sell lower to higher quality shoes in a variety of prices. A competitive review of Batas competitors is provided below: Apex Apex is one of Batas most notable competitors. Apexadelchi Footwear Limited, a manufacturer and exporter of leather footwear grew from a potential power in footwear market of Bangladesh to major shoe retailers in Western Europe, North America and Japan. The company has revenues of USD 100 million in 2010. AAFL pioneered the export of value added finished products export in the

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leather sector of Bangladesh and is also involved in the local footwear retail business with the second largest shoe retail network in the country. AAFL currently employs 8000 persons. Jennys Shoes Jennys Shoes is not very mature and does not hold a notable part of the market share. The company lacks in product variety and class. Bay Emporium Bay is relatively a new name in the footwear industry of Bangladesh. With outlets in some of the premium locations of Dhaka and other major cities, Bay Emporium has the potential to become one of the big competitors in the market. Bay Footwear Ltd has a production quantity of 5000 pairs from the companys 2 production facilities. Turnover is USD $10 million. Fortuna Shoes Ltd Fortuna is a new state of the art footwear manufacturing plant with a capacity to produce 2500 pairs of shoes per day. The 40,000-sqft factory is located in Fortuna Park, Kunia, Gazipur Bangladesh. The company also produces leather bags, sandals, and other accessories. Fortuna is opening in retail outlets to sell shoes, leather bags and accessories under its own brand Fortuna. The company is open to joint ventures and strategic partnerships. Illegal imports/Non brand/street sellers market This segment of the market captures most of the market share. Unbelievable it may be, but this segment holds a whopping 50%+ market share (Based on the interview with Batas merchandise mgr.). This is possible because shoes provided by this kind of suppliers are way too cheap. It is true that these are not as comfortable or not as durable as the brand shoes are, but when a mans income is low, necessity comes first, comfort last.

3. Bata- Product Background


3.1 Origin of Bata
The Bata Shoe Organization was founded in 1894 by Czech businessman Tomas Bata in the city of Zlin(Czechoslovakia). Today, it is a sprawling geo-centric company encompassing operations in more than 70 countries around the world and is managed by 4 regional commercial business units (CBUs) across five continents. It serves 1 million customers per day, employs more than 50,000 people, operates 5,000 retail outlets, manages a retail presence in over 70 countries and runs 27 production facilities across 20 countries. Bata started operating in Bangladesh in 1962. Having contributed BDT 1.2 billion (year 2009), which is 70% of the entire amount paid by the footwear sector, it became one of the largest tax-paying corporate bodies. Currently Bata Shoe Company (Bangladesh) Limited has two factories one in
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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 stand at slightly more than 30 million pairs with a turnover for the year 2009 of Tk 5 billion. Bata is playing a pivotal role in developing the leather industry of the country. Bata has introduced internationally renowned brands like Bata Comfit, Marie Claire, Hush Puppies, Scholl, Nike, Bubblegummers, Sandak, Weinbrenneretc in Bangladesh and added a new dimension in branded shoe market of the country. At present, Bata operates 242 retail outlets and 13 Wholesale depots all over Bangladesh.

3.2 Position of Bata in Footwear Market


Bata has positioned itself as the topmost preferred brand in terms of quality and durability in the consumer base it operates. Over the long years of service, Bata has successfully engrained its brand name as an icon for footwear with durability, style and quality. The company also possesses the largest distribution network in the country controlling the largest market share in the footwear market. The company is producing around 110,000 pairs of shoes daily. Bata Bangladesh concentrates mainly on the domestic market through a countrywide distribution network comprising retail stores, Dealer Support Program (DSPs) and independent dealers. The company also markets its own brands to sister companies overseas and the Middle Eastern countries. With Annual shoe sales currently standing at slightly more than 30 million pairs and with a turnover of approximately Tk 5 billion, Bata currently enjoys around 35% of the market share with net revenue of BDT 4.6billion. The company has maintained a good brand image since they commenced operation in Bangladesh in 1962. With 242 retail stores, Bata remains the largest retail footwear manufacturer in Bangladesh. Its distribution network covers the whole country. Their strong network helps them maintain their dominance in the market and meet the demand. No other footwear manufacturer or retailer in the country comes close to matching the distribution network of Bata.

3.2.1 Mapping

Market

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Here in the current market scenario, Bata is accompanied by a few other branded entities to occupy the total footwear market of Bangladesh alongside the local unbranded market. It can be illustrated as follows: The illustration is of a market mapping done on the footwear industry of Bangladesh. The basic criteria taken for the map were PRICE and QUALITY. On the basis of secondary research and assistance from Figure 1 : Market random interviews, it was figured out that much of the Mapping market is still taken by the local brands that provide low priced moderate and low quality footwear for the mass section of the population. They are able to do so due to our income structure of the population. However, among the rest, Bata holds a strong position in the market taking up the segment with good quality and moderate price. This has been possible due its marketing policy.

3.2.3 Batas Sales and Growth


Batas sales growth in the last few years as follows: 2006 26 % 2007 3% 2008 16 % 2009 10 % 2010 10 % 2011 (exp) 12 %

Table 1: Bata's Sales Growth


From the above data we can see that Bata has been having a sustainable increase in its sales over the last few years. Bata also enjoyed consistent growth in sales from 2008 with Sales growth averaging around 12% in the last four years. Though it had a major setback in 2007 , it steadily kept on its policies to increase its sales.

Of the following years it made the certain margins which are shown as below: 2005 Gross Profit Margin 37 % 2006 40 % 2007 33 % 2008 34 %

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Operating Margin Net Margin

11 % 7%

11 % 7%

13 % 8%

14 % 10 %

Table 2 : Profit Margin of Bata


Bata has been a consistent performer in recent years and this is reflected in their profit margins for the last five years. Since 2008 it has been having the following growth in terms of unappropriated profit: 2008 2009 2010 Unappropriated profit Growth(%) 724,748,075 25.97 873,194,520 20.48 1,075,165,050 23.13

Table 3 : Unappropriated Profit Growth


Thus over the years it can be seen that Bata has been having a persistent growth of around 20% per year in terms of income. With the increase in population at a constant rate, Bata is in a constant pursuit of capturing its market from this growing population

3.3 SWOT analysis: I

Strengths

Weaknesses
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n t e r n a l

Brand Image Quality of Products and Services Good-value Pricing Conveniently Accessible Outlets Targeting consumers of all income segments Footwear for every member of the family Training employees for better service Strong Distribution Channel

Lack of design variety Unavailability Failed to of exploit some new shoes in all the stores mediums of advertisements like online marketing.

E x t e r n a l

Opportunities
New mediums of advertisements Introduction of innovative products with advance of new technology E-commerce Introduction of more internationally renowned brands utilizing its brand image

Threats
Rapid market expansion programs by organized competitors like Apex, Fortuna Footwear Changing consumer preferences Political Instability affecting supply of raw materials and distribution of finished products Lack of implementation of laws has caused growth of illegal shoe
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market in some areas which are occupying a significant percent of share in the market.

4. Bata- Marketing Strategy


4.1 Product Positioning and Differentiation Products are created in the facory, but brands are created in the mind
Bata aims at positioning its products in the minds of its customers on the basis of its Quality of products at a reasonable price. It is providing a basic line of quality footwear that demonstrates value-for-money to a wide range of consumer base.Bata differentiates its products from other brands of footwear manufacturers on : Quality of Product Reasonable Price Batas brand image gives it a competitive advantage over all other footwear manufacturers as it has been serving people since many years. Whereas, other competitors like Apex, Fortuna Footwears are comparatively new in the market. Bata has positioned itself as a Quality Footwear Manufacturer Brand in the market leaving behind other footwear manufacturers like Apex, Bay, Fortuna etc.

4.2 Segmentation, Target Market and Product Line


Bata uses multiple segmentation bases for a better-defined target group and tailoring their service more efficiently.

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The Market Segments Geographic Segmentation Both urban and rural areas of Bangladesh, but main expansion in urban areas

Demographic/ Socio- All ages : 1-8 years, 5-15 years, 15-35 years, 5-65 years economic Segemntation Both male and female Low middle income to high income range, middle income range and high income range Psychographic Segmentation Behavioral Segmentation Lower middle class to upper class, middle class to upper class, upper class Regular occasion, special occasion

Bata uses differentiated segmentation strategy and has more or less uniform concentration for all the segments, although some segments like urban expansion are prioritized. Bata has a broad product line which caters to the needs of people of all age and different income level. Bata launches new products on special occasions along with time-to-time product line expansion. Bata targets consumers of all ages who want fashionable footwear that meets their demand for quality and value. Mainly low medium class to medium high class families who fall under the urban influence is their customer base. They have specified footwear segments for different consumers of different income groups and age. The product line for different consumer groups is given.

Kids Footwear
Category Infants Casual and School shoes Brands Bubble Gummers B. First Age 1-8 years 4-16 years Status Medium to High Low to High Lifestyle Urban fashion conscious Urban, sub urban and rural school-going youngsters Urban and rural fashionable For basic and fashionable footwear

Bata Comfit Sandals Sandak

10-17 years 5-17 years

Medium to medium high Low to high

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Pata Pata Bata Comfit

5-17 years 10-17 years

Low to high Medium to medium high

Rural and city fashionable Urban and rural fashionable

Mens Footwear
Category Formal Brands Weinbrenner Hush Puppies Bata Men Outdoor and Casual Scholl Bata Men Hush Puppies Weinbrenner Sandals Bata Comfit Age group 19-30 years 15-30 years 15-30 years 19-35 years 15-30 years 17-35 years 19-30 years 10-35 years Income Medium to high Higher medium to high Lower Medium to High Higher Medium to High Lower Medium to High Higher Medium to High Medium to High Medium to Lifestyle City lifestyle Urban fashionable Urban lifestyle Urban lifestyle with outdoor influence Urban lifestyle Urban fashion-conscious City trendy lifestyle Urban and rural fashionable
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and Slippers

medium high

(Males of all ages who require fashionable sandals and slippers for domestic and social use) Consumers who require basic footwear for everyday use More affluent group seeking stylish footwear to fit new fashion trends Rural and city fashionable

Sandak

5-65 years

Low to medium

Medium to High

PataPata

5-65 years

Low to medium Medium to High

Athletic

Power

15-35 years

Medium to High

Active athletic minded consumers who value performance, comfort and style at affordable price Urban fashionable with athletic interests Urban fashionable with athletic interests

North Star Nike

10-30 years 15-35 years

Medium Medium to High

Womens Footwear
Category Casual and Comfort Brands Bata Comfit Age 10-35 years Income group Medium to medium high Lifestyle Urban and rural fashionable (Females of all ages who require fashionable footwears for domestic and social use) Urban fashionconscious Lifestyle urban
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Hush Puppies Fashion Marie Claire

17-35 years 19-45 years

Higher Medium to High Medium to high

footwears Bata Women Sandals and Thongs Sandak 15-50 years 5-65 years lower Low to medium

upwardly mobile and slightly conservative

Consumers who require basic footwear for everyday use More affluent group seeking stylish footwear to fit new fashion trends Rural and city fashionable

Medium to High

Pata Pata

5-65 years

Low to medium, Medium to High

Bata Comfit Athletic Power

10-35 years 15-35 years

Medium to medium high Medium to High

Urban and rural fashionable Active athletic minded consumers who value performance, comfort and style at affordable price Urban fashionable with athletic interests

North Star

10-30 years

Medium

Besides shoes, Bata also has belts, shoe laces, shoe polish.socks and ladies hand bags in their stores.

4.3 Pricing Strategy


Our discussion with the officials of Bata tells us that they do value-based pricing, more specifically, good-value pricing. They offer proper combination of quality and service at a reasonable price. Bata Bangladesh maintains a psychological pricing strategy. Every price tag is seen to be having a price of less than nearest Tk.100 or Tk.1000. There is a significant difference between cheap and good bargain. Lets see: cheap implies low quality, bad work or really small amount good bargain implies exceptional quality, great work and reasonable amount Bata has always promoted good bargain. It has provided its customers with all the feel good factors.
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Bata Bangladesh uses this type of pricing policy in the form of keeping the price lower by tk. 10 to tk. 30 on every nearest tk 100 or tk.1000. For example you will see price tags with prices like tk. 1990, 1390, 790, 570 and etc. Bata also uses promotional pricing strategy in their clearance outlets and during the end of their season for discount and sale. At present, a sale is running in Bata stores which offer upto 60% discount in all shoes.

4.4 Distribution Strategy


Bata has its factories at Tongi and Dhamrai, from where the end products go to Central Distribution Center at Tongi. The end products, after packaging are sent to different Bata stores for selling. Bata has a network of 242 retail outlets located strategically in different parts of the country. These retail outlets are an integral part of Batas 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.

Figure 2 : Bata Outlets in Bangladesh

4.4.1 Placing of Retail Outlets


Bata explains its placing of retail outlets as different parts of an empire. There are cities, forts and protectors. Bata puts its products into its numerous shops according to market demand and other influencing factors, namely demographics, education and environment. Based on these factors & consumer profile, the company divides its retailer stores into three tiers. They are 1. Flagship (City) 2. Family (Fort) & 3. Street (Protector) These segments can be shown as an inverted pyramid.

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1. Flagship (City): At the top

of the inverted pyramid sits the Flagship tier. These stores are placed in premium locations and usually have a large floor area. The flagship stores do not only provide products; they provide what BATA defines as an Experience. Flagship stores showcase a huge variety of products for a market segment which is Figure 3 : Placing of Retail highly educated & well informed. Outlets Flagship stores like the one in Bashundhara city shopping mall or the BATA store in Dhanmondi are BATAs pride and joy; just like what a city is to an empire. 2. Family (Fort): Family stores are the biggest of BATA stores. They can occupy around 3000 square feet of floor space. Family stores are placed in densely populated or busy areas. These stores also provide different varieties of BATA products. As these stores are places in business centers like Elephant road, Motijheel or Gulshan, they attract a lot of people. 3. Street (Protector): The street shops are like numerous soldiers of an empire. BATA stores in suburban and even village levels fall under this category. These stores normally do not showcase premium brands like Marie Claire or Nike. They focus on providing the customer with Value for money. As urbanization is a continuous process, as a suburban area evolves into a City, a street store in that area also has a possibility of becoming a Family store and move up to the second tier. 4. Clearance outlets: Clearance outlets are normally placed in densely populated and heavy commute areas like Motijheel or Farmgate. These stores can be placed alongside a Family store or a street shop.

5. Bata- Promotion Mix

5.1 Advertising and Promotional Activities


Bata Shoe Company (Bangladesh) Ltd. undergoes a lot of promotional activities every year. Organizing press conferences before Eid, Puja, sales or inaugurating new models are most of their activities. Here, some of Batas promotional activities have been highlighted from last year.
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28.11.2011 | Big Sale (Upto 60%) To attract additional customers to their outlets and to clear the aged merchandise, Bata Bangladesh organized 'Big Sale (Upto 60%)' promotion in all retail outlets & selected DSP stores highlighting the price decrease articles for all the customers. The promotion started from 1st of December, 2011. 18.10.2011 | Bata Fashion Show at Bashundhara Mall An exclusive footwear fashion show was organized on 18.10.2011 by Bata Bangladesh in front of the store at Bashundhara Mall Shopping Complex, Dhaka to highlight the new arrivals of different brands & to create hype among the target segments. 9.10.2011 | Bata organized Puja promotion - 2011 Bata Shoe Company (Bangladesh) Ltd. organizes Puja promotion in selected outlets every year. This year Bata Bangladesh participated in this grand festival for Hindu community in our country sponsoring Puja Mandap (Place) at Uttara& preparation of Gate on Dhaka - Mymensingh Main road incorporating Bata logo. 4.8.2011 | Bata unveiled 400 new designs for Eid A Meet the Press on new collection of Eid-ul-Fitr 2011 was organized by Bata Bangladesh in Hotel Ruposhi Bangla, Dhaka. Bata Bangladesh unveiled more than 400 new designs of shoes for the target customer groups in this event. Eid-ul-Fitr is the largest festival of Bangladesh. During Eid time every one prefers wearing new pair of shoes with their new clothing. So,Bata always dedicates its effort in the development of new shoes according to tastes of men, women, and children throughout the country especially during the time of Eid. 23.06.2011 | Meet the Press" on Launching of "Light & Easy" collection Bata Shoe Company (Bangladesh) Ltd. organized "Meet the Press" to introduce "Light & Easy" collection in front of several invited guests and media personnel at Hotel Sheraton, Dhaka.

19.06.2011 | International Fathers Day Bata dedicated its advertisement to International Fathers Day this year in this picture they published nationwide. 02.05.2011 | Bata Bangladesh organized "Spring Summer (New Arrival)" promotion - 2011 To grab the increasing demand of the target customer groups and to attract additional customers in the outlets, Bata Bangladesh organized 'Spring Summer (New Arrival)' promotion in all retail outlets and selected DSP stores highlighting the new collection for all the customers. 18.04.2011 | Bata Bangladesh organized Bengali New Year "Boishakhi" promotion - 2011 Bengali New Year starts from 14 April. On this grand occasion, Bata Bangladesh organizes 'Bengali New Year (Boishakhi)' promotion in all retail outlets & DSP stores highlighting the new 'Boishakhi' collections for all the customer segments.

5.2. Advertising & Promotional Strategies


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Bata follows Organization marketing strategy for their promotional activities. They usually undertake the following activities: Preparing banner, X-banner, dangler & show card (as per category) to create a big impact in their outlets. Going for Press Ads, Radio Commercials, Television commercials and E-flyer for mass communication. Sponsorship:Bata was the Official Clothing Sponsor of Bangladesh National Cricket Team during the World Cup Cricket 2011. They are the Official Sponsors from January 2009 to December 2011.

5.3 Corporate Social Responsibility


Environment Friendly Business: 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. Bata Empowering women by Rural Sales Program participation: Bata has been fighting socioeconomic crisis of rural Bangladesh as a valuable part of its long term business vision. In order to establish sustainable employment opportunity & income generating capacity of poor rural Bangladeshi women, Bata Shoe Company (Bangladesh) Ltd. went for innovative partnership with Care Bangladesh in the Care Project named Rural sales program (RSP) at Natore District with 49 Women sellers Aparajitas (In Bengali means 'the woman who never accepts defeat') in the year of 2005. It was an outcome of partnership with an N.G.O and a Multinational Company that promise a win-win situation for all parties concerned. It is also an example of how a private company can enter the new remote rural market and expand their business with the help of N.G.Os and at the same time engenders socio-economic progress amongst rural people. Four apprentices from 'Maer Achol Shelter' - Street Children Partner: Bata have organized training program of four apprentices from 'Maer Achol Shelter', a Street Children Partner under Bata BCP (Bata Children's Program). Bata Bangladesh has provided extensive training to the members of Maer Achol Shelter, Mirpur, Dhaka. Participants have been trained on Product Knowledge, Customer Service and Bata 5 Steps; they are now on the job training in our stores.

5.4 Management of Sales Force


We believe that the fundamental vitality and strength of our organization lies in our people" Thomas J. Bata A discussion with the merchandising manager has revealed that Bata puts a lot of emphasis on managing its sales force for ensuring good customer service and customer satisfaction. They invest a great deal in their human resources, specially with organized training to bring out those fundamental features that are typical of anyone who works for Bata. They ensure the following in their members:
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Technical preparation Team work Constant drive for the results Organizational and managerial capacity Bata provides scopes for personal development in their employees by : Running local courses for training and improving skills Organizing several national and international courses at all levels on a regular basis for teaching new technologies and systems Encouraging life-long learning Bata strives to attain customer satisfaction by giving them good professional sales assistance.

6. Effectiveness of Batas Overall Marketing Strategy


6.1 Effectiveness of Batas Marketing Strategy
Effectiveness of Product Positioning and Differentiation
Bata is quite a renowned brand in Bangladesh as it has been long since it started operating in this country. So, it is quite apparent for them to have created an image of their own in the minds of people. Bata positions its products on the basis of the quality of the products at a reasonable price. A survey concludes that 72 % people would prefer Bata due to its product Quality and Comfort. So, it has been quite successful in positioning its products. Then, 26 % people showed inclination towards Batas brand image for purchasing their products, which also shows Batas competitive advantage over other brands for its brand image. Remarks There has been increasing competitiveness in footwear market for the last few years. Apex, Fortuna and some other footwear manufacturers are also positioning their products as Quality Products. To add to that, illegal street markets are offering comparatively low-quality goods at a very low price. So, Bata needs to focus on its positioning factor and add some more to it for maintaining and increasing its overall growth. Bata can utilize new technologies of shoe-making and thus charge more less and add to its main offering factors.

Effectiveness of Batas Market Segmentation, Target Market and Product Line


Bata uses multiple segmentation bases and targets a wide range of consumer base.

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A survey made on people of different age, income reveals that 66 % people are happy with the service of Bata, 25 % gave responded negatively and 9 % had other things to say. So, Bata has more or less been successful in catering to the needs of its consumer groups. In the survey, some people mentioned that Bata should increase their design and variety for shoes. So, Batas product line and designs have been disappointing for some people. Remarks For development and expansion, Bata needs to capture the remaining 25 % people who had negative response for Batas service before they opt for some other footwear manufacturer. Since Bata has multiple segmentation bases, with increasing competition they should focus more on the main factors of their products Quality, Price, Design and Variety. As some people have complained, Bata should increase their design and variety of the products and make sure the availability of the demanded products according to customer segments in their stores.

Effectiveness of Pricing Strategy and Remarks


Bata uses good-value pricing and psychological pricing strategy mainly. It has priced its goods differently for consumers of different income groups. This has proven to be quite effective as there is very little complaining about the price of shoes. A small group of people have complains about some shoes priced high that mainly targets high-income consumer group. Bata can look into that or introduce a new product base for that particular group.

Effectiveness of Distribution Strategy and Remarks


Bata has a very well-planned distribution strategy based on its market segmentation bases and some other related factors. They have retail outlets in conveniently accessible places. According to the survey conducted, 35% people visit their flagship store at Bashundhara City, 36 % people in Elephant Road and nearby areas, 21 % in Dhanmondi and some other 27 % in other areas. But, there are still unavailability of some varieties and sizes of shoes in quite a number of stores, as per some random interviews. So, Bata should ensure availability of varieties and sizes in the stores as per demand. Bata can also go for expanding its retail outlets in densely populated and remote areas.

6.2 Effectiveness of Batas Promotion Strategy


Batas promotional activity is not as extensive as per the size of this brand in the current footwear market in our country. It has not exploited new mediums for marketing their products, one of them, notably is online marketing, facebook, twitter etc. On the basis of a survey, some basic conclusions derived from the consumers about Batas promotional activities tells us: It was found that only 41% of the people knew about the 60% sale being provided by Bata during the month of December, 2011.

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Among that 41%, half of them saw the advertisements in billboards and banners outside their outlets. Newspaper advertisement contributed to 21% and word of mouth informed 21%. The rest are from radio, flyers or other sources. Now, the effectiveness of promotional activity can be judged from two points of view. One ischange in sales due to promotional activities and the other is the change of consumer behaviour due to promotional activities. Change of sales: Bata is constantly maintaining around 12% sales growth every year. Discounts and sales have a positive effect on their sales, and this is largely contributed by the promotional activities undertaken by them. Figure 4 : Sales condition in A graph is given which reflects the change of sales during Eid. Change of consumer behaviour: From the survey provided by us online, it was found that 60% of the people are inclined to respond to sales positively. They would intend to buy shoes when there is a sale going on in Bata. Remarks Bata is not spending enough to capture the total market. If they to try inform the rest 59% of the people about their present sale, they should undertake some more different strategies: Internet has become a very important source of advertisement at the present and a huge part of the consumer group of Bata have access to and are quite regular users of internet. So, Bata should arrange for advertising and promoting their products and services in the internet in their own websites and sites like facebook, twitter. Teenagers at present are less inclined to newspaper and billboard advertisements. So, Bata can do campaign programmes for the teenagers to attract them. Recently, they have organized a Bata Fashion Show. If this event generates attractiveness, Bata can undertake such events more often. For maintaining its consumer base and making loyal consumers, Bata can offer voucher or some kind of incentives to regular customers.

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Bata can run surveys or interviews on random people and its consumers time to time, so that they can change strategies with the changing demands o people and get to know about their complains. Since Bata is primarily dedicated to expansion of market size, their promotional activities are comparatively low in amount. But with the present market share of Chinese shoes or Black market shoes, Bata needs extensive amount of campaigning if they undertake plans to capture the rest of the market.

7. Prospect of Bata
The socio-economic condition of Bangladesh has changed vastly. Buying power of the average Bangladeshi has increased, and the middle-class has expanded with an increased percentage of the population falling under it. This class yields reasonable buying power, and is fashion and price conscious at the same time. And this class is forecasted to grow strongly as the country develops. Bata excels at providing reasonably priced quality footwear, exactly what this class of buyers need. Hence, Bata has good scopes ahead. The 20,000sq ft Bashundhara shopping mall outlet is a great initiative towards capturing the larger portion of the higher and middle class people of Bangladesh. Through it, they are not just selling shoes, but providing the customers with an 'experience' in buying shoes, which they'll get nowhere else. And, their USD 1.2M a month sales revenue from that particular megastore proves its worth. Interview with the Merchandising Manager of Bata reveals that Bata plans to increase penetration by setting up more retail outlets across the country, by taking up shopping mall venues in the cities, and placing wholesale and discount sale depots in semi-urban areas alongside retail shops. This is feasible as Bata already operates a strong distribution channel, and on top of that, Batas long operating experience in Bangladesh gives it an edge in terms of geographical knowledge. So, launching some more mega stores like the one in Bashundhara mall can certainly have a very positive effect on Batas expansion and sales growth. Discussion with the officials of Bata tells us that Bata claims it's 'real estate department' to be the best in the market. They have been constantly coming up with excellent locations for new stores in the less developed but densely-populated parts of the country. This is their one strategy to capture and expand the market more effectively. As mentioned earlier, launching new retail outlets with proper planning is to reflect on their sales positively most possibly. Bata is planning to bring Adidas' under their franchise .They already are the distributors of Nike. To add to that, they are planning to revive one of their athletics SBU called 'Spark'. So, it is comprehended that they will have very good chance to compete and excel in the sports shoes sector. But, Batas promotional and advertisements strategy still need a lot more attention from its concerned authority. Moreover, some local brands are emerging with their own line of sports shoes. Bata needs
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to utilize its brand image and position its products properly for giving a good competition to the emerging competitors. In a cricket crazy nation, being an official sponsor of the national team gave Bata much advertisements and promotion. They were also economically benefitted as indicated by their turn over. They can continue and be a part of such large-scale promotions and sponsorships for strengthening their brand image and advertisement policies. Competitors like Apex, Fortuna, Bay, Jennys footwear are continuously striving for development. Bata has still maintained its position quite successfully due to its brand image, age-long experience and quality. But, in the near future if Bata does not hold on to it quality, fail to expand and implement its plans, and overcome the disappointments of its consumers, Bata might be in trouble. Moreover, the growing number of local illegal street markets of shoes is already posing a threat occupying a good number of shares of the market taking advantage of the basic income of the maximum people of the country. Bata needs to develop all of its aspects with the changing needs of time for a prosperous future. With proper implementation of plans, development of products, new marketing strategies and better advertisement and promotional plans, Bata is expected to maintain and make its position even more firm in the footwear market.

8. Conclusion
At present, Bata rests in a firm position in the footwear market occupying almost 35 % share in the footwear market of Bangladesh and is planning for market expansion. Batas age-long experience and brand image have given it a competitive advantage over all other brands. People prefer and know Bata as a Quality Footwear Manufacturer that provide shoes at a reasonable price. Although Bata has been quite successful with its marketing strategies, it is time for them to get more involved with advertisement and promotional activities and focus more on their products and services as competitors are emerging in the footwear market. Bata sponsors national sports events, organizes charity programs, seminars etc for Corporate Social Responsibility and involvement in such events has proved to be profitable and are encouraged. With advanced planning and proper implementation of the plans, Bata is expected to maintain its position in the footwear market, giving a good competition to all other footwear manufacturers of the country.
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9. Appendix
TOTAL SAMPLE SIZE 155 Q.1. What is your gender? Ans: Male Female Q.2. What is your age group? Ans: Age (10-17) Age (18-25) Age (26-35)
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Age (35+) Q.3. What is your monthly income? Ans: 3000-9000 9000-15000 (Income range) (Income range)

15000-25000 (Income range) 25000+ (Income range)

Q.4. When buying shoes, what is your order of preference?* Ans : Brand Price Comfort and Quality Design and Variety Q.8. Which BATA retail outlet do you visit the most?* Ans: Bashundhara City Elephant Road Dhanmondi Others

Q.9. Do you know about the 60% sale BATA is providing at present? Ans: Yes No Q.10. If yes, then from where did you get to know about the sale?* Ans: Newspaper Billboard Word of mouth Others Q.11. Does discount affect you on purchase of shoes? Ans: Yes No
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Q.12. Why would you prefer BATA?* Ans: Brand Quality and Comfort Price Design and Variety Q.13. Are you happy with the service of BATA? Ans: Yes No Other (Includes specific answers)

*percentages may not add up to 100% or may be the more than 100%, due to the option of selecting more than one checkbox.

Survey Results
In buying shoes, order of preference of buyers :

Which Bata outlet do you visit most ?

From where did you get to know about the discount ?

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Advertising and Promotional Activities

Bata Eid promotional advertisement Bata Christmas Greetings


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Bata Boishakhi advertisement

Bata 60 % sale campaign

Bata organized Fashion Show at Bashundhara City


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Bata giving shoes to Shishu Polli school students Official Clothing Sponsor of Bangladesh Cricket Team

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Bata empowering women

References
1. http://www.batabd.com/ 2. https://www.facebook.com/pages/Bata-Shoe-Company-BangladeshLtd/192517564101600 3. http://www.scribd.com/ 4. http://www.oppapers.com/ 5. http://www.bata.com/ 6. http://tutor2u.net/marketing/default.html 7. http://en.wikipedia.org/wiki/Bata_Shoes 8. Principles of Marketing Philip Kotler and Gary Armstrong 9. Business Communication William C. Himstreet and Wayne Murlin Baty

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