Professional Documents
Culture Documents
Report BATA Shoe Co
Report BATA Shoe Co
Ltd.
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:
:
:
:
1962
1972
400
4
:40
:35 M PAIRS
:70M US $
:4 US $
:20
CHANNELS OF SALES:
RETAIL AREAS
NUMBER OF RETAIL OUTLETS
WHOLESALE DEPOTS
TOTAL NUMBER OF DEALERS
: 30
: 350
: 20
: 1200
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Vision:
To provide good quality shoes at an affordable price. By keeping in mind the
comfort that needs to be there and providing new designs with it.
Objectives:
Achievement of 100% estimated business in each category
Maintain a shoe line with 700 lines of which 200, 300, 150 & 50 lines for Men,
Women Children & Plastic respectively.
Introduction of a shoe line as per life style as well as fashion trend.
Achieve an average 55% margin in each category
Innovate ideas or system for better management of merchandise distribution by
maintaining 4 times stock turn.
Strategies:
Penetration to new & targeted market segments through introduction of shoe
lines as per life styles with supportive promotion activities
Defined number of lines, assortment & quantity for each store according to
merchandise classification & store profile in order to increase efficiency in
distribution.
Identification of loopholes in cost structure to increase production
efficiency.
Detail analysis of price points of entire shoe line in order to achieve maximum
margin.
Detail analysis of departmental work flow & bringing necessary changes
for efficiency better coordination with other departments.
Own:
Bata Bangladesh has two factories in Tongi and Dhamrai. All the rubber and
related production has been done in Tongi factory. Every type of leather
products are been manufactured in the Dhamrai factory. About 92% of all
Bata products are produced in these two factories.
Satellite:
There are some satellite production factories which produces solely for Bata
with the production facility, which has been, step up by Bata Bangladesh. 4%
of Bata production is from satellite sources.
Outsourcing:
As related and supporting industries are growing in shades of the massive
structure of Bata Bangladesh. It also does outsourcing with different small
shoe industries mainly from the Dhaka region. The quality and the
specification has been ensured by the Bata people. The participation of
outsourcing in the companies business is 4%.
Import:
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segment.
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Finance Department:
To maximize the interest of the shareholders of Bata Shoe Co. (BD) Ltd.
To allocate the fund in a proper way that minimizes its cost and
maximizes its profit.
To ensure conductive financial climate of the company.
To ensure sound management of the administrative staff and financial
matters of administrative staff and selection grade employees.
Company Secretariat
Accounts Department:
Ltd.
Investigation: Conduct thorough review in any specific area of audit
universe as desired by the authority of the concerned audit entity.
Development of procedure manuals.
MIS Department:
To coordinate and supervise data entry for the accounting and payroll
package.
To update product cost and product profitability from time to time.
To arrange repair and maintenance of the computer hardware.
To provide necessary support and help to the computer in their day to day
function
To prepare the monthly statement of Advanced Sale Invoice.
Quality Assurance:
To ensure that the end users receive medicines those are safe, effective
and quality consistent with leadership position in the health care industry
throughout the country.
To apply the principles of customer-focused quality, service and
excellence to all processes and system, from product design,
development through production, distribution and marketing.
To maintain the standard of quality in order to protect the patients,
prevent errors and optimize value provided to the consumer and
company.
To comply with group product standards and regulatory requirements.
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CFO
(ChiefCFO
Financial
Officer)
Retail
Retail
Marketi
Marketi
ng
ng
Manage
Manag
r
er
Retail
Servic
es
Manag
er
Wholesale
Manager
Area
Manag
er
Wholesa
le
Services
Manager
Shop
Manag
er
Merchandisin
g
Manager
Area
Manage
r
Merchandisi
ng
Officer
HR
Manag
er
Costing &
Efficiency
Manager
MIS
Manag
er
Costing
Officer
Progra
m
Officer
Export
Manag
er
Exp.
S up rv is
or
Distribut
or
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P la n t
M anag
er
D e p t.
M anag
er
TECHNOLOGICAL FACTORS:
Due to vast improvements in the information technology systems, 'Internet' has
posed itself to be new media to reach the consumers. Realizing the need and the
opportunity Bata Bangladesh has already set a state of the art facility in
Dhamrai. All the leather products that they made here in Bangladesh are made
there. They provide new forms of technological improvement where MIS
department monitor their whole operation. The POS system in the wholesale
depot is also a positive step towards good use of technology in the survival and
competition in todays business.
ECONOMIC FACTORS:
Per capita income is increasing.
Shoe industry is growing with the increase of urban population and income level.
Political and
Legal
Technological
Environment
Environment
Custom
er
Marketing Strategy:
Achieving maximum
Positive differentiation
Over competition in meeting
Customer needs.
Corporati
on
Social
Environme
nt
Competiti
on
Economic
Environment
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Bubblegummers:
The Bubblegummers brand of Bata serves the infant to children, according to
them 0-13 years of age group. Bubblegummer brand has provided Varity of
design and type of shoes for above-mentioned age group of children.
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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.
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.Scholes 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
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BATA
Men's
995-1695
Women's
250-550
School
Children
200-330
130-195
Sport
695-995
Non Shoes
50-100
Dominating Color
Men's
Black
Women's
Black, Chocolate
School
Black, White
Children
Multicolor
Sport
White, Gray
Non Shoes
Black, Chocolate
41,42
Women's
4,5
School
Children
Sport
Non Shoes
Opening Days
Opening Hours (AM-PM)
Implementation of new designs
Effective sales campaigns
4,5
11,12
7,8
Depends on the product
6 days
9:00 am-8:00 pm
Weekly
15-20% discount
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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
Tongi
focusing on the rural markets for volume growth in the low-priced footwear
Factory
CDC
Own Stores
segment.
Raw
Materials
Dhamrai
(Central
Distribution
Center)
&
Agencies
Depot
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Dealers
&
Wholesalers
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Introduction
Growth
Maturity
Decline
NEW ENTRANTS
Apex
Nike, Reebok,
Woodland
Sun crest
SUPPLIERS
Rubber from local
source,
leather from local
source.
Some sole from other
subsidiaries of Bata
like India and China
MAJOR
COMPETITORS
BUYERS
Infant, teen, young,
old. Lower- middle to
upper class
Apex, Independent
sellers,
Reebok, Liberty
Smuggled shoes
SUBSTITUTE
Bare foot, low quality
footwear
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Figure: 5 Five forces of competition for Bata Shoe Co. Bd. Ltd.
Threat of substitutes:
One cant think of much substitute of shoes. There are not too many bare footed
people now days. At least they wear a sandal. So the threat of substitute is not
that much.
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Weaknesses:
Opportunities:
Despite political turbulence 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.
Consumer like differentiated products. They like to shop in a store
where they serve the whole family.
More competition results in more campaign for products.
Business Expansion in Shoe care products
Utilize outsourcing especially the synergy sources to achieve
competitive pricing
Franchisee opportunity with global brands like Nike, Reebok, Hush
Puppy
Market expansion opportunity in high fashion & value for money
footwear market for all categories of shoes through Retail & WCSM
channels
Threat:
Political instability affects the supply of raw materials and distribution
of finished products.
Uncontrolled counterfeit of Bata products
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APEX:
Most of their shoes are expensive. They dont provide any school shoes. The
sports shoe they bring into the market are mostly imported Addidas shoes and
quite expensive. In the mens 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.
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.
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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 dont 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.
WOODLAND:
Trendy high quality shoes for all. They dont provide school shoes. Dust, Brown
and Green are their dominating color in every category. They have lots of nonshoes item like T-shirts, trousers, and shoe polish. The most popular price ranges
among those are 695-1395 taka. They open everyday from 10:00-9:00. It brings
new design in after 3-4 months. The effective sales campaign is same as
Reebok. Very good quality trendy shoes which quickly gaining ground in the
country. This is the same company that brings Reebok in the country as
franchisee.
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.
HOMELAND:
It is the least known brand among buyers. No non-shoe items. Open
everyday9:00-10:00PM in the evening. On average bring out new design after2-3
months. Discount up to 20% on specific design are their most effective sales
campaign. It is a Bangladeshi company. Not too many people know them but
they are in market for more than 10 years. There main lacking is their poor
distribution channel. Only 15-20 stores in the country is the indication of it.
INDEPENDENT HIGH:
It is most popular among buyers. They are the type of seller who usually sold
relatively high priced imported shoes. Mens best-sold price ranges are14001750 taka, womens 600-750 taka, no school shoes but have childrens shoes
320-400 taka. They remain open everyday form 10:30-10:00PM at night. They
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INDEPENDENT MEDIUM:
These types are stores are of plenty in the elephant road area. Theyre usual
best range for mens shoes are 500 -600taka, 200-400 taka for women, and 100250 taka shoes for children. They have no school shoes and non-shoe items.
Dominating color and sizes are the same as Independent highs. Their opening
hours are same as highs. Implementation new design happens after 3-4 months.
They hold a major market shares. 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.
2.3.4
CORE
BANGLADESH:
COMPETENCIES/STRATEGIES
OF
BATA
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Local-Market Strategy
Regional Market Strategy
National Market Strategy
International Market Strategy
Among the market-Geography Strategies Bata Bangladesh follows the 'NationalMarket Strategy in Bangladesh as they distribute their product to the whole of
Bangladesh using their own and Danish's distribution channel. Though it is a
MNC it operates quite freely here in Bangladesh and operates as NationalMarket Strategy.
Definition: Operating nationally.
Objective: To seek growth.
Requirements:
Top management commitment.
Capital Resources.
Willingness to take risks.
Expected Results:
Increased growth.
Increased market share.
Keep up with competitors
Market-Dilution Strategy:
1.
2.
3.
4.
De-marketing Strategy
Pruning-of Marginal Markets Strategy
Key Markets Strategy
Harvesting Strategy
Requirements:
Expected results:
Increased profits.
Increased market share in the selected markets.
Product-Positioning Strategy
Product Repositioning Strategy
Product-Overlap Strategy
Product-Scope Strategy
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Ltd.
Product-Design Strategy
Product-Elimination Strategy
New-Product Strategy
Diversification Strategy
Requirements:
Use of marketing mix variables (design and communication efforts).
Successful management of a single brand requires positioning the brand
in the market so that it can stand competition from the toughest rivals
and maintaining its unique position by creating the aura of a distinctive
product.
Successful management of multiple brands requires careful positioning in
the market so that multiple brands do not compete with nor cannibalize
each other. Thus it is important to be careful in segmenting the market
and to position an individual product as uniquely suited to a particular
segment through design and promotion.
Expected Results:
Meet as much as possible the needs of specific segments of the market.
Limit sudden change in sales.
Make customers faithful to the brands.
Distribution Strategy:
Definition: Developing unfamiliar products and markets through
Concentric diversification (products introduced are related to existing
ones in term of marketing or technology),
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Ltd.
Horizontal diversification (new products are unrelated to existing ones but
are sold to the same customers), and
Conglomerate diversification (products are entirely new).
Objectives: Diversification strategies response to the desire for
Ltd.
Low margin on sales.
Lower unit costs relative to competition due to economies of scale.
One-Price Strategy
Flexible-pricing Strategy
Product-Line Pricing Strategy
Leasing Strategy
Bundle-Pricing Strategy
Price-Leadership Strategy
Pricing Strategy to build market Share
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Promotion-Expenditure Strategy
Promotion Mix Strategy
Media-Selection Strategy
Advertising Copy Strategy
Selling Strategy
Sales Motivation and supervision Strategy
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2.5
ETHICAL
CONDUCT
RESPONSIBILITY:
AND
CORPORATE
Bata companies have a tradition of being good corporate citizens and seek to
contribute to the well being of the countries and communities where they
operate. Bata companies conduct themselves as positive and contributing
members of any community in which they operate, and seek to provide
employees with a safe and healthy working environment. Bata companies are
committed to ensuring that operations are conducted ethically, and in
compliance with applicable local laws and regulations. Bata Bangladesh is also
concern about the environmental safety related issues. So it has established of
its own an Effluent Treatment Plant (ETP) in its organization premise with a huge
investment.
The Bata Environmental Mission Statement is: To protect our people,
customers and communities and to protect our natural environment in order to
help sustain human development globally.
In the implementation of this mission, international guidelines have been
developed in the areas of environment, health and safety. The efforts and
achievements of Bata companies have been recognized in many countries, by
both local and international bodies. The contribution to environmental
conservation includes a role in prevention and education. Bata companies have
long standing relationships with groups that have helped several generations of
young people become more aware of the need for protection of the natural
environment.
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CONCLUSION:
From the analysis of Bata Shoe Company Bangladesh Ltd and the shoe industry
we have identified that the shoe industry is growing and identified their main
weakness is insufficient lack of development with the rapid changing market
needs, insufficient promotional activities, and downward trend of quality. On the
other hand, distribution system and vertical integration are the strengths of Bata
From strategic marketing viewpoint; we see that Bata is taking corrective steps
in almost all the way. In very few sides Bata has lacking. Based upon these facts
recommended strategies would assist in more growth of Bata shoe company
Bangladesh Ltd. in among the upcoming fierce competition in the shoe industry.
RECOMMENDATIONS:
Give sales discount and free samples to influence more sales in the
growing shoe market.
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