Term Paper on

Consumer Behavior of Bata Shoe Company Bangladesh Ltd

BANGLADESH UNIVERSITY OF PROFESSIONALS (BUP)
Course Title: Consumer Behavior (MKT 8603)

Term Paper on
Consumer Behavior of Bata Shoe Company Bangladesh Ltd

Submitted To
Dr. khondaker Saifuzzaman
Associate Professor
Faculty of Business Studies (BUP)

Submitted By
Name ID
Ahmed Istiaq Murad 1407076
Shajib Ray 16011029

Date of Submission
09/03/2018

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 LETTER OF TRANSMITTAL
March 09, 2018

Khondaker Saifuzzaman
Assoc. Professor
Bangladesh University of Professionals

Subject: Submission of report on Consumer Behavior.

Dear Sir,
With due respect, we would like to inform you that, Ahmed Istiaq Murad, bearing student ID :
1407076 and Shajib Ray, bearing student ID: 16011029, are student of BUP faculty of business
studies. It is our great pleasure to inform you that we are getting the opportunity to submit a
Term Paper on “Consumer Behavior of Bata Shoe Company Bangladesh Ltd”, as a
requirement for MBA program. While conducting the working report, we gathered extensive
knowledge on overall Bata‟s activities from all the relevant sources.

We believe this genuine and honest analysis will help you to have a positive view point upon us.
We will be pleased to deliver you with added explanations or clarifications that you may feel
necessary in this regard. We shall be thankful if you kindly approve this effort.

Sincerely yours,

…………………………………………..
Ahmed Istiaq Murad
ID : 1407076

…………………………………………..
Shajib Ray
ID: 16011029
Department of Marketing,
Bangladesh University of Professionals

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 ACKNOWLEDGEMENT
At the beginning, we are expressing sincere gratefulness to the Almighty God for enabling us to
prepare this Term Paper in a complete form within a short period successfully.

Special mention should go to our honorable faculty Dr. Khondaker Saifuzzaman, Associate
Professor, Bangladesh University of Professionals (BUP) for his constant, and constructive
guidance throughout the study. Without his help, it would have been so difficult to prepare this
report.

We are also grateful to the help and guidance of all members of Department of Marketing,
Bangladesh University of Professionals (BUP). We are thankful to all of my course mates for
giving us valuable advice.

We are expressing our gratitude to Mr. Nur-E-Alam, Senior Scientific Officer, Leather Research
Institute (LRI), Bangladesh Council for Scientific and Industrial Research (BCSIR) & Mr.
Habibur Rahman, Manager-Human Resources, Bata Bangladesh Co. Ltd. for giving us a huge
support for preparing this term paper.

Finally, we would show humble gratitude to all of the individuals who have helped us to prepare
this report within very short period of time. As being a human being, it is natural to forget few
names may not be mention forgetfully. I would like to apologies forgetfulness.

With the best regards

Ahmed Istiaq Murad & Shajib Ray
March, 2018

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 ACRONYMS
ABU = Associates Business Unit
BCSIR = Bangladesh Council for Scientific and Industrial Research
BSO = Bata shoe organization
CDC = Central Distribution Center
DSP = Dealer Support program
DVP= Direct vulcanization Process
EPSI = Eastern progressive shoe industries
ETP = Effluent treatment plant
EU = European Union
ISO = International Organization for Standardization
LFMEAMB = Leather-goods and Footwear Manufacturers and Exporters Association of
Bangladesh
LRI = Leather Research Institute
MIS = Management Information System
PVC = Polyvenyl Chloride
PR =Public Relation
QA = Quality Assurance
QC = Quality Control
RWD = Registered Wholesale Dealers
SMS = Short Message Service

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 ABSTRACT

Footwear sector is a major industrial sector in Bangladesh and has been playing a significant
role in the country’s economy from the beginning of industrialization. The purpose of this report
is to analyze the marketing mix strategy of Bata Shoe Co. Bangladesh Ltd. Bata business policy
is the segmentation of retail outlets according to all over the country. Bata Shoe Co. Bangladesh
Ltd. is a Multinational Company (MNC). They started their operations in Bangladesh in 1962 by
opening their branch office. After that, they started as full-fledged company in 1972 Bata offers a
number of product lines to the prospective consumers in the existing market as depend on culture
and customer. Bata Shoe Company is the market leader in the footwear industry since its
operation in Bangladesh. This paper discussed about the products of Bata and business of Bata.
Bata is the no. 01 brand in footwear market. Their product range is very large can meet the need
of almost all segments. The study have discussed here about the marketing strategies and their
overall business in Bangladesh covering on Consumer Behavior practice (focusing on Marketing
Mix & Segmentation). 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. Customer satisfaction is an ambiguous and abstract
concept and the actual manifestation of the state of satisfaction will vary from person to person
and product/service to product/service. The stat of satisfaction depends on a number of both
psychological and physical variables, which correlate with satisfaction behaviors such as return
and recommend rate. The level of satisfaction can also vary depending on other options the
customer may have and other products against which the customer can compare the
organization’s products. At the end, from the study on customer behavior towards Bata; It has
concluded that most of the customers are satisfied with the service of Bata products. Such as
quality, brand name, price, service are most important in attracting to customers towards Bata
products.

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 TABLE OF CONTENT
Chapter 1 : INTRODUCTION........................................................................................................ 1
1.1 Insertion ............................................................................................................................ 1
1.2 BACKGROUND OF THE STUDY ................................................................................ 1
1.3 SCOPE ............................................................................................................................. 2
1.4 RESEARCH OBJECTIVES ............................................................................................ 2
1.4.1 Broad Objective ........................................................................................................ 2
1.4.2 Specific Objectives ................................................................................................... 2
1.5 RESEARCH METHODOLOGY ..................................................................................... 3
1.5.1 Types of Research ..................................................................................................... 3
1.5.2 Basic Research Method............................................................................................. 3
1.5.3 Research Preparation ................................................................................................ 3
1.6 SOURCES OF DATA ...................................................................................................... 4
1.6.1 Data Collection Procedure ........................................................................................ 4
1.7 RATIONALE OF THE STUDY ...................................................................................... 4
CHAPTER 02: FOOTWEAR SECTOR, BATA ORGANIZATIONAL STRUCTURE,
BUSSINESS TYPES, PRODUCTS & SERVICES ....................................................................... 5
2.1 FOOTWEAR INDUSTRY IN BANGLADESH ............................................................. 5
2.2 MULTITUDE OF PRODUCTS ...................................................................................... 5
2.3 MANUFACTURING HUB ............................................................................................. 6
2.4 GROWTH RATE ............................................................................................................. 7
2.5 BRIEF HISTORY OF BATA SHOE COMPANY .......................................................... 7
2.5.1 Bata today ................................................................................................................. 8
2.6 BATA BUSINESS ........................................................................................................... 8
2.6.1 Retailing .................................................................................................................... 8
2.6.2 Manufacturing ........................................................................................................... 9
2.6.3 Wholesaling .............................................................................................................. 9
2.6.4 Brands & Product Development ............................................................................... 9
2.7 BUSINESS UNITS OF BATA SHOE COMPANY ........................................................ 9
2.7.1 Bata shoe company (Bangladesh) Ltd. ................................................................... 10
2.7.2 About Bata Shoe Co. Bangladesh Ltd.: .................................................................. 11

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 2.8 Customer service ............................................................................................................ 12
2.8.1 Personalized service ................................................................................................ 12
2.8.2 Guaranteed customer satisfaction ........................................................................... 12
2.8.3 Bata Gift Voucher ................................................................................................... 12
2.8.4 Customer service center .......................................................................................... 12
2.9 MISSION & VISION ..................................................................................................... 12
2.9.1 Vision ...................................................................................................................... 12
2.9.2 Mission.................................................................................................................... 13
2.9.3 Environmental Mission ........................................................................................... 13
2.10 BATA BUSINESS TYPES ............................................................................................ 13
2.10.1 City Stores ............................................................................................................... 13
2.10.2 Family Stores .......................................................................................................... 13
2.10.3 Bata Bazar ............................................................................................................... 14
2.10.4 Clearance Outlets .................................................................................................... 14
2.11 ACHIEVEMENT ........................................................................................................... 14
2.12 SPONSOR ...................................................................................................................... 14
2.13 NUMBER OF THE DESIGN ........................................................................................ 14
2.13.1 Men Shoe ................................................................................................................ 14
2.13.2 Ladies shoe.............................................................................................................. 14
2.13.3 Kids ......................................................................................................................... 15
2.14 FUNCTIONAL DEPARTMENT OF BATA ................................................................ 15
CHAPTER 03: INTEGRATED MARKETING, MARKETI0NG MIX & SEGMENTATION .. 16
3.1 INTEGRATED MARKETING...................................................................................... 16
3.2 CURRENT MARKETING MIX ................................................................................... 17
3.2.1 Product .................................................................................................................... 17
3.2.2 Place ........................................................................................................................ 19
3.2.3 Price ........................................................................................................................ 20
3.2.4 Promotion................................................................................................................ 21
3.3 Bata Footwear compare with other company ................................................................. 22
3.3.1 Bata‟s price v/s competitor‟s price ......................................................................... 22
3.3.2 Quality of shoes ...................................................................................................... 23

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 3.3.3 Brands offered ......................................................................................................... 23
3.3.4 Respondents Age .................................................................................................... 24
3.3.5 Comfort of shoes ..................................................................................................... 25
3.3.6 Fashionable Style .................................................................................................... 25
3.3.7 Selection of Colors, Style and Sizes ....................................................................... 26
3.4 MARKET SEGMENTATION ....................................................................................... 26
3.4.1 Demographics Segmentation .................................................................................. 26
3.4.2 Geographic Segmentation ....................................................................................... 29
3.4.3 Psychographic Segmentation .................................................................................. 29
3.4.4 Behavioural Segmentation ...................................................................................... 30
CHAPTER 04: FINDINGS, RECCOMENDATIONS AND CONCLUSION ............................ 31
4.1 FINDINGS ..................................................................................................................... 31
4.2 RECOMMENDATIONS ............................................................................................... 33
4.3 CONCLUSION .............................................................................................................. 34
BIBLIOGRAPHY ......................................................................................................................... 35

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 LIST OF TABLES
Table 1: Pricing of Bata Shoes ...................................................................................................... 21
Table 2: Frequency Distribution of Bata Shoe Co. Compare with Other ..................................... 22
Table 3: Frequency Distribution of Bata‟s Quality V/S Price ...................................................... 23
Table 4: Frequency Distribution of Quality Of Shoe.................................................................... 23
Table 5: Brands of Shoes Offered ................................................................................................. 24
Table 6: Frequency Distribution of Sex of The Respondent ........................................................ 24
Table 7: Frequency Distribution of Age of The Respondent ........................................................ 25
Table 8: Frequency Distribution of Comfort of Shoes ................................................................. 25
Table 9: Frequency Distribution of Fashionable Style ................................................................. 26
Table 10: Frequency Distribution of Selection of Colors, Style and Sizes ................................... 26

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 EXECUTIVE SUMMARY

The Footwear Industry in Bangladesh has started since the colonial era, although its
modernization took place only in the late 1980s. When Bata Shoe Company established its
manufacturing plant at Tongi in 1962, it was the first manufacturing plant to produce shoes on a
large scale in East Pakistan. The local footwear industry is experiencing an annual growth rate of
21 percent, according to leather goods and footwear manufacturing and exporters association of
Bangladesh. Bangladesh is set to emerge as the next manufacturing hub for the global footwear
industry. The cheap labor is prompting top manufacturers to relocate their factories in the
country. The good news is that a number of foreign investors as well as buyers have already
shown interest in Bangladesh‟s leather and footwear sector. Bangladesh has a host of potential
products that can earn substantially large amounts of foreign exchange. Japan and Germany are
now the biggest markets for Bangladeshi footwear but US buyers are increasingly showing
interest in sourcing from Bangladesh.

Bata Shoe Company is the market leader in the footwear industry since its operation in
Bangladesh. The name Bata achieve such a position in the customer‟s mind that whenever they
heard the name of Bata, a footwear with high quality comes in to their mind. Bata has been
serving its customer with wide assortment of products for about five decades and doing it
successfully. It is very difficult to identify the customer‟s class of Bata Shoe Company. Bata
meets the footwear demands of the higher class and lower class simultaneously. It has developed
a strong distribution channel all over the world through the establishment approximately 6,300
retail outlets, 10,000 franchises and 1000 of depots and dealers. More than 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 Shoe Co. Bangladesh Ltd. has
lunched more than 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 outlets 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.

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Science in inception, Bata shoe company (Bangladesh) Ltd. has strived towards one goal
customer satisfaction. With the vision of building a worldwide family of satisfied customers and
dedicated workers the legacy of Tomas Bata continues strong and unabated to this day the
tradition is safe. The marketer‟s task is to devise marketing activities and assemble fully
integrated marketing‟s programs to create, communicate, and deliver value for consumer.
Marketing activities come in all forms. McCarthy classified these activities as Marketing Mix
tools of four broad kinds, which he called the Four P’s 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 tool is designed to deliver a customer benefit. A complementary
breakdown of marketing activities has been proposed that centers on customers.

Winning companies satisfy customer needs and surpass their expectations economically and
conveniently and with effective communication. Two key themes of integrated marketing are
that (1) many different marketing activities communicate and deliver value and (2) When
coordinated marketing activities maximize their joint effects. In other words marketers should
design and implement any one marketing activity with all other activities in mind. For example,
using an integrated communication strategy means choosing communication options that
reinforce and complement each other. A marketer might selectively employ television, radio and
print advertising, public relations and events, and Public Relation (PR) and web site
Communications, so that each contributes on its own as well as improving the effectiveness of
the others. Each 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.

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Bata is playing a pivotal role in developing the leather industry of the country. Bata has a firm
commitment to eco- friendly business and a state of the art Effluent treatment plant (ETP) has
been set up to provide a pollution free environment for both workers and the locality.

Fashion would never be complete without a well-designed pair of shoe. This marketing
insight has promoted Bata to introduce a number of designer‟s collection for men, women and
children. Internationally renowned brands such as Bata comfit, Marie Claire, Hush puppies,
Scholl, Nike, Bubblegummers, Sandak, Weinbrenner and B‟ First are a few names that testify to
the momentous change towards branded shoe marketing in Bangladesh. Specialized shoe
categories such as athletic shoe have been targeted through development of the power brand.
Uncompromising quality with striking designs have put Bata shoe in a key position to appeal to
different segments of consumer. At the same time , 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.

Bata fails to reflect up to date fashion shoes for its customers in some cases. 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.

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:

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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 .

This study of Consumer behavior of Bata Shoe Company Bangladesh Ltd focuses on
Marketing Mix & Segmentation (Demographic, Geographic Psychographic & Behavioral
Segmentation) as Consumer Behavior is a broad study, which is not possible to discuss all in a
term paper. Thus the study tries to bring all the possible aspects through broad discussion in a
limited framework covering Marketing Mix & Segmentation.

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 Chapter 1 : INTRODUCTION

1.1 Insertion

Bata Shoe Company is the market leader in the footwear industry since its operation in
Bangladesh. The name Bata achieved such a position in the customers‟ mind that whenever they
heard the name of Bata, footwear with high quality comes into their mind. Bata has been serving
its customer with the wide assortment of products for about five decades and doing it
successfully. It is very difficult to identify the customer‟s class of Bata Shoe Company. Bata
touch almost every social class possible. Bata meets the footwear demands of the higher class
and lower class simultaneously. However, to stay closer to the customers, Bata Shoe Company
undertakes an assessment of the customers at a regular interval.

Bata desires to fulfill the ever-changing customer‟s needs and to do so the outcome of the
customer assessment plays a significant role. Here the similar study was undertaken with a
permission of Bata Shoe Company to get the feedback from regular customers. The
questionnaire is taken from Bata shoe company Bangladesh Ltd. to conduct the survey among
the regular customers. Bata practices Consumer Behavior to achieve the goal of the organization.
Here, this study is an analysis of Marketing Mix & Segmentation of Bata shoe company
commitment to service continues to this day, from the designers‟ sketchbook through to the
performance of our shoes on a customer‟s foot. Bata companies strive to supply the right
products, at the right time, at the right price, and in a manner, that fulfills our service
commitment to both retail and wholesale customers.

1.2 BACKGROUND OF THE STUDY

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

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footwear, socks, sneakers, etc. Bata has introduced huge product line of men footwear shoes,
sandal, sneakers, shocks, women footwear, kid‟s footwear and many other types of footwear line
the company is operating in the market. About half line of product, the company imports and
sells under the franchising. Bata also sell ten international brands footwear at their retail shop.
Bata has been delivering handcrafted quality footwear for 100 years to maintain and build on the
heritage of creating high quality, comfortable and stylish shoes.

1.3 SCOPE

To achieve the objective it is needed to collect data from customers within the country. But for
time, cost, and other limitations only the Dhaka city and is surroundings are considered for
collecting data. For achieving the objectives, the study will focus on the quality, price, comfort
ability, and other criteria of Bata shoes as well as the competitive position with Apex, Jennys,
Bay and other competitors for which directly affect consumer‟s decision making process. While
doing so it will also identify the limitations and the weaknesses of the issue.

1.4 RESEARCH OBJECTIVES

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

1.4.1 Broad Objective

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

1.4.2 Specific Objectives

 To examine the current state of Bata shoe company (BD) Ltd in the market
 To examine the perception about Bata shoe in consumer mind
 To analyze the impact of Quality shoes for customer
 To analyze the impact of Comfort for customer

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  To analyze the impact of value for price offered
 To analyze the impact of fashionable style offered
 To analyze the impact of brands of shoes offered
 To analyze the impact of selection of colors, style, and size
 To analyze the impact of advertising on customer
 To analyze the impact of placement

1.5 RESEARCH METHODOLOGY

1.5.1 Types of Research

This research is a qualitative exploratory research, as it is an initial research conducted to 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 conducted to define the nature of the problem. It has enabled to design the research
question and questionnaire and to formulate hypothesis. Then conclusive research through
qualitative methods has been carried out.

1.5.2 Basic Research Method

This section has described the basic research plan of the study. It has specified all the procedure
necessary to solve the research questions and hypothesis. The basic research method in this study
will be survey method. An observation method will not produce expected result. As experimental
study is costly, so it will not be undertaken.

1.5.3 Research Preparation

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

questionnaire was provided by Bata Shoe Company. Due to some statistical analysis difficultly,
the questionnaire was rephrased a little bit. The questionnaire is prepared by considering
following criteria:

 pertinent for research

 Simple language is used

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  Leading & loaded questions are avoided
 Easy to understand questions

1.6 SOURCES OF DATA

This research will not be focusing on any secondary data, as no such preview research has been
conducted in context of Customer Satisfaction Assessment of Bata Shoe Company (BD) Ltd.
This research will work with only primary data.

1.6.1 Data Collection Procedure

Data is collected through survey method. For the survey method, personal interview was
conducted. A questionnaire is kept in hand of the interviewer to aid the interview process. A
personal interview is a form of direct communication in which an interviewer asks respondents
questions in a face-to-face situation. Verbal explanations were provided to the respondents who
faced any problems answering the questionnaires. Informal interviews were also held with
Customers.

1.7 RATIONALE OF THE STUDY

To survive in an ever-growing industry, it is very important for any company to know its
customers level of satisfaction to the products and service provided by the company. This
research will facilitate Bata Shoe Co. Bangladesh Ltd. to know the present market situation as
well as what customers want from the company. It will provide information about customer
perception about Bata‟s quality, price, customer service etc. This study can help Bata understand
what level of consumer satisfaction and awareness they have. This information can help to
design future strategies to retain existing customers or to attract and obtain new ones. Finally,
this research study can be considered a general guideline for other organizations in the industry
who hope to do research on customer satisfaction and factors that affect customer satisfaction.

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 CHAPTER 02: FOOTWEAR SECTOR, BATA ORGANIZATIONAL
STRUCTURE, BUSSINESS TYPES, PRODUCTS & SERVICES

2.1 FOOTWEAR INDUSTRY IN BANGLADESH

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

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

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

2.2 MULTITUDE OF PRODUCTS

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

Recently, a new opportunity has opened up to further diversify the range of Bangladesh‟s exports
base by including footwear and other leather goods in the list of exports, particularly to the
European Union (EN) market.

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

2.3 MANUFACTURING HUB

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

The export processing zones at present have 18 shoe and leather goods factories but there are at
least seven large factories under construction, mostly owned by big manufacturers in the shoe
world. The factories under constructions include Korean company Young one‟s footwear
complex which is said to be the largest in Asia. The company started construction of its mega
shoe complex in Chittagong six month back. The first part of the complex will go into
production by the middle of next year, and the company‟s executives said they would be able to
manufacture about 30 million pairs of shoes by 2013.

In addition, Taiwanese shoe manufacturer pau Chen, which employs about 4,00,000 workers in
its factories in China and 50,000 in Vietnam, is also building a large manufacturing facility in
Chittagong. Australian manufacturer bonbon shoe, a supplier to Hugo boss, and Xen Chen and
Genford of Taiwan, are also building footwear factories in Bangladesh. Apex – Adelchi also has

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a new factory that will soon start production. With an annual turnover of about $100 million, the
Bangladesh – Italy joint venture is now the largest exporter of footwear. However, with a new
joint venture factory, Blue Ocean footwear, due to go into production by February 2011, Apex
will get involved with a turnover of nearly $200 million of footwear export by 2013.

2.4 GROWTH RATE

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

According to a newly released statistics from the export promotion Bureau of Bangladesh
footwear exports from the country grew from the US $61 million in the period of July-
November 2007 to $85 million in the same period of 2008, recording a growth of 39 percent. In
the first four months of the 2010 fiscal year‟s footwear export is likely to cross $300 million.
Though in the next two years the existing factories are likely to export more shoes, it is the new
capacity that will come on stream from early 2011 that is expected to cause huge spurt in growth.
Growth in exports is due to the low production cost in Bangladesh compared to its neighboring
countries: China, India, and Vietnam, who have a very well entrenched leather and footwear
export industry. The order which earlier used to be given to China or India are now being handed
out to footwear manufacturers in Bangladesh because they are able to produce low period but
quality shoes, which have now found its way into key markets in EU and Japan.

This growth in footwear exports has come as a blessing in disguise at a time when leather
exports have fallen by a massive 18 percent in the period under review.

2.5 BRIEF HISTORY OF BATA SHOE COMPANY

Bata Shoe Company was founded by the famous entrepreneur Mr. Tomas Bata who blew the
wind of change in the footwear industry in 1894. The company was started from Zlin,
Czechoslovakia, now known as the Czech Republic. From that day onward Bata Shoe Company

7
has been the largest manufacturer and marketer of footwear in the world. The global business of
Bata comprises of shoe factories, tanneries, engineering plants, quality control (QC) laboratories,
product development and research centers.

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

2.5.1 Bata today

 Serve 1 million customers per day
 Employee more than 50,000 people
 Operates 5000 retail stores
 Manages a retail presence in over 70 countries
 Run 27 production facilities across 20 countries

2.6 BATA BUSINESS

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

2.6.1 Retailing

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

8
 2.6.2 Manufacturing

Tomas Bata‟s revolutionary business concept was to industrialize the shoemaking process of that
day. That type of thinking has been the driving force behind the Bata shoe organization success.
The Bata shoe organization has been an innovator in the manufacturing of shoes over the year.
Bata personnel have made important. Advances in DVP (Direct vulcanization Process),
Polyvenyl Chloride (PVC), athletic footwear production and slush molded footwear production.

2.6.3 Wholesaling

The Bata shoe organization (BSO) enjoys a unique position in the wholesale marketplace. Global
economies of scale enable BSO plants to offer quality products at local prices, with many are
operating at International Organization for Standardization (ISO) standards. Bata shoe
organization production facilities are world renowned for their commitment to quality and
customers and have attracted production contracts from many international footwear brands.

2.6.4 Brands & Product Development

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

2.7 BUSINESS UNITS OF BATA SHOE COMPANY

Bata is operating the 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.

9
 2.7.1 Bata shoe company (Bangladesh) Ltd.

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

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

Bata is playing a pivotal role in developing the leather industry of the country. Bata has a firm
commitment to eco- friendly business and a state of the art Effluent treatment plant (ETP) has
been set up to provide a pollution free environment for both workers and the locality.

Fashion would never be complete without a well-designed pair of shoe. This marketing insight
has promoted Bata to introduce a number of designer‟s collection for men, women, and children.
Internationally renowned brands such as Bata comfit, Marie Claire, Hush puppies, Scholl, Nike,
Bubblegummers, Sandak, Weinbrenner and B‟ First are a few names that testify to the
momentous change towards branded shoe marketing in Bangladesh. Specialized shoe categories
such as athletic shoe have been targeted through the development of the power brand.
Uncompromising quality with striking designs has put Bata shoe in a key position to appeal to
different segments of the consumer.

Another major change in the Bata business policy is the segmentation of retail outlets according
to profiles of different market segments and the introduction of novel concepts such as Bata city
stores. These selective outlets, in conjunction with other types of outlets such as Bata Bazar and
Bata family store, are adding a new level of consumer satisfaction.

The city stores incorporate spacious floor space allowing a comfortable shopping experience,
modern interior decor enriched with novel shelving systems, fittings, fixtures and lighting that

10
can be found in the large retail shops in the Far East and Europe. Bata has a network of 242 retail
outlets located strategically in different parts of the country. These retail outlets are an integral
part of our brand marketing. This extensive retail network is supplemented by an equally
extensive network of depots and dealers. Bata has 13 wholesale depots covering Bangladesh.
Under these depots, 390 RWD (Registered Wholesale Dealers) and 553 DSP (Dealer Support
program) stores are operating.

One of the critical areas associated with external shareholders and the community at large is the
corporate social responsibility program of the company. From supporting nationwide sports
sponsorships and disabled persons to addressing environment concern, scholarship program,
charity contribution etc – Bata has always supported individuals and communities in need.
Partnerships with other voluntary and charitable organizations are another prominent feature of
Bata‟s corporate social responsibility. Bata, in partnership with CARE, extends assistance to
over two thousand rural women in order to become independent entrepreneurs in the Rajshahi,
Camilla and Chittagong division selling shoe from door to door under its rural sales program.

Science its inception, Bata shoe company (Bangladesh) Ltd. has strived towards one goal
customer satisfaction. With the vision of building a worldwide family of satisfied customers and
dedicated workers the legacy of Tomas Bata continuous strong and unabated to this day – the
first tradition is safe. Bata Shoe Co. Bangladesh Ltd. has about 1500 regular and efficient
employees, who are highly committed to uplift the company‟s performance with high
productivity and sales.

2.7.2 About Bata Shoe Co. Bangladesh Ltd.:

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

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2.8 Customer service
2.8.1 Personalized service

Qualified and enthusiastic sales associates are engaged who take customer‟s satisfaction to heart.
In many countries customer service goes beyond the store with home deliveries, orders made
possible via catalogs, the web or even call centers.

2.8.2 Guaranteed customer satisfaction

In any Bata store in the world, they repair, exchange or refund any products with defects. They
also exchange or refund on unworn merchandise if one changes one‟s mind. Proof of purchase is
required for refunds.

2.8.3 Bata Gift Voucher

Bata gift vouchers are like cash coupons that can be used by customers to make purchases of
Bata products from selected Bata shoe stores. Gift vouchers are available in three denominations-
Tk. 1,000 and Tk. 2,000.

2.8.4 Customer service center

Bata Shoe Company (Bangladesh) Ltd has a customer service center and the contact address is:
Phone: +88029800501-5 Ext: 209

2.9 MISSION & VISION

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

2.9.1 Vision

“To make great shoes accessible to everyone.”

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 2.9.2 Mission

 To help people look and feel good

 To be the customer‟s destination of choice
 To attract and retain the best people
 To remain the most respected Footwear Company

2.9.3 Environmental Mission

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

2.10 BATA BUSINESS TYPES

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

2.10.1 City Stores

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

2.10.2 Family Stores

Bata Shoe Company is undoubtedly the world‟s leading family footwear chain. The company
offers a wide assortment of every day‟s fashion footwear. The products are primarily of the
brand Bata. Nevertheless very carefully selected articles from both local and international brands
are also marketed by the company. There are 60 family stores till date that has been successfully
operated all over Bangladesh.

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 2.10.3 Bata Bazar

Bata Bazar is the largest display of Bata‟s products among all others store concepts. It provides
the customer with the broadest range of products and accessories possible. This concept was
introduced in 2003. They are ideally located in power centers commercial parks and outlet
centers with easy parking facilities. There is 73 Bata bazar being operated.

2.10.4 Clearance Outlets

There are three Clearance outlets of Bata Shoe Company where discounted shoes are sold.

2.11 ACHIEVEMENT

In 2010, Bata Shoe Co (BD) Ltd wins “ Superbrands” award. Superbrands is a unique brand not
only Bangladesh but also internationally renowned brand and have a good brand image all over
the world. In Bangladesh, only Bata shoe co (BD) Ltd has achieved this awarded.

2.12 SPONSOR

“Bata was official clothing sponsor of the Bangladesh Cricket Team”

2.13 NUMBER OF THE DESIGN

2.13.1 Men Shoe
 Dress shoe 31 Designs
 Casual shoe 48 Designs
 Sports shoe 38 Designs
 Sandals 53 Designs
 Thongs 32 Designs
2.13.2 Ladies shoe
 Dress shoe 49 Designs
 Casual shoe 69 Designs
 Sports shoe 02 Designs

14
  Sandals 53 Designs
 Thongs 28 Designs
2.13.3 Kids
 Infants 13 Designs
 Boys 03 Designs
 Girls 13 Designs
 Sandals 14 Designs
 Thongs 10 Designs
 Scholl 08 Designs

2.14 FUNCTIONAL DEPARTMENT OF BATA

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

15
 CHAPTER 03: INTEGRATED MARKETING, MARKETI0NG MIX &
SEGMENTATION

3.1 INTEGRATED MARKETING

The marketer‟s task is to devise marketing activities and assemble fully integrated marketing‟s
programs to create, communicate, and deliver value to the consumer. Marketing activities come
in all forms. McCarthy classified these activities as marketing mix tools of four broad kinds,
which he called the four Ps of marketing: product, price, place, and promotion the particular
marketing variables.

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 chooses 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 are designed to deliver a customer benefit. A
complementary breakdown of marketing activities has been proposed that centers on customers.
Its four dimensions 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

16
that (1) many different marketing activities communicate and deliver value and (2) When
coordinated marketing activities maximize their joint effects. In other words, marketers should
design and implement any one marketing activity with all other activities in mind.

3.2 CURRENT MARKETING MIX

3.2.1 Product

Bata offers a number of product lines to the prospective consumers in the existing market. Bata
has the truly international team whose diversity of ideas to develop new style footwear, shocks,
sneaker, etc. Bata has introduced huge product line of men footwear – shows, sandal, sneakers,
shocks, women footwear, kid‟s footwear and many other types of footwear line the company is
operating in the market. About half line of product the company imports and sells under the
franchising. Bata also sell ten international brands footwear at their retail shop.

3.2.1.1 Premium collection

Bata has been delivering handcrafted quality footwear over100 years to maintain and build on
the heritage of creating high quality, comfortable and stylish shoes.

3.2.1.2 Brands
 Hush Puppies
 Weinbrenner
 Power
 North Stare
 Bata Comfit
 Sandak
 Bubble Gummers
 Marie Claire
 Scholl
 Bata
 Ambassador

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  Bata Industrial
 B ‘ First
 Island
 Pata Pata

3.2.1.3 Hush Puppies

Hush puppies are the international brand, Bata uses the franchising power to supply the product
in the Bangladeshi market. The target customers of this model are rich people. Basically, it is an
American brand.

3.2.1.4 Weinbrenner

The Weinbrenner shoe line is made up of leather shoes and boots, style in the low, mid, and high
cut. Cuts or design directly fashion but can include materials which help to fell comfort in doing
outdoor strong works. The shoes are casual in style closures generally with laces and eyelets,
sometimes supplemented with hooks, D- rings and straps with buckles.

3.2.1.5 Power

Power is also an athletic shoe which is considered as the alternative of Nike. Power shoes are
cheaper than Nike shoes. The target customer of this shoe is middle-class people.

3.2.1.6 North-Star

North-Star is a trendy shoe focused on the young customer group. This shoe is cheaper than Nike
and power. This is considered as a seasonal product as the demand increase in winter.

3.2.1.7 Bata Comfit

Comfit has an important feature in design and assembly of all the comfit shoes. This brand is
focused on both comfort and style of shoes. Unit rubber, PVC, PU or TRR sole are commonly
used in this brand. “Get comfortable today” is a tagline commonly associated with this range of
shoes.

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 3.2.1.8 Sandak

Sandak is a plastic made Bata product for lower income people to use in every season of the
year. This shoe is also made for rough use for all level of customers.

3.2.1.9 Bubblegummers

Bubblegummers is the leading children‟s footwear brand in Latin America and has developed an
extensive presence in Asia and in Europe. Bubblegummers offers quality, comfortable, funny
and colorful shoes for the 0 to 9 age that assure the healthy growth of a child‟s foot.

3.2.1.10 Bata

Bata is the old and own brand of Bata Shoe Company. But by the time being this brand is
updated to fulfill the customers‟ demand.

3.2.1.11 Marie Claire

Marie Claire shoes are for women with an active lifestyle who seek contemporary modern styles.
Marie Claire shoe stores successfully opened in Latin America and Asia. Bata brands are the
trademark owner of Marie Claire for shoes worldwide 9 except in Japan and Korea).

3.2.2 Place

Another element of Neil H.Borden‟s Marketing Mix is Place. The place is also known
as channel, distribution, or intermediary. It is the mechanism through which goods and/or
services are moved from the manufacturer/ service provider to the user or consumer.

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

19
 3.2.2.1 Bata City
The city stores incorporate spacious floor space allowing a comfortable shopping experience,
modern interior enriched with novel shelving systems, fittings, fixtures, and lighting. The city
stores are established in the prime location of the metropolitan city. Among the 25 city stores, 16
are established in Dhaka and other in the major business area.

3.2.2.2 Bata Bazar

Bata Bazar holds the largest display of Bata‟s products consisting wide range of assortment. It
provides the customers with the broadest range of products and accessories in a different price
range possible. But exclusive brands and products are not been sold here. This concept was
introduced in 2003.

3.2.2.3 Bata Family

It is more a like a clearance outlet. Most of the products which are been sold here are on sale.

These three types of stores are serving the different segment of the target market and adding a
new value in customer satisfaction.

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

3.2.3 Price

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

20
Bata follow geocentric pricing techniques. According to the demographic features the local
pricing for Bata shoes for men, women, and children is given below:

Category Highest [BDT] Lowest [BDT]

Men Dress 6990 990

Men Summer 4490 550

Women Dress 5490 1390

Women Summer 2490 690

Athletic footwear 1390 12000

Children footwear 290 1290

Sandak/Sandals 120 90

Table 1: Pricing of Bata Shoes

3.2.4 Promotion

Another one 4P‟s is a promotion. This includes all of the tools available to the marketer for
„marketing communication‟. Think of it like a cake mix, the basic ingredients are always the
same. However, if you vary the amounts of one of the ingredients, the final outcome is different.

Bata has put less effort in promoting their products. They think the 250 retail outlet throughout
the country helps Bata to do integral brand marketing. Other than that they were the official
clothing sponsor of Bangladesh Cricket Team. However Bangladesh, Bata has done many
promotional activities like:

 TV campaign

21
  Print advertisement
 Outdoor (Billboard)
 Web-based E- flyer, Short Message Service (SMS)

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

3.3 Bata Footwear compare with other company

About 78.4% of people mention Bata as their first option when they think of any footwear
company. 15.1% respondent mentioned about Apex. And rests of the respondents have
mentioned other company name as their first choice.

Company Frequency percent

Bata 34 13.6
Apex 156 62.4
Bay 13 5.2
Liberty 3 1.2
Shamrat 1 0.4
Rado 1 0.4

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

3.3.1 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, 1 % of survey people said according to the quality Bata is changing more.

22
 Frequency Percent

Expensive for the quality 101 40.4

Fair and reasonable 141 56.4

Medium 6 2.4

Low 2 0.8

Total 250 100.0

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

3.3.2 Quality of shoes

Quality of shoes is an important factor to the respondents those were surveyed. From the frequency
distribution it is found that almost 97% respondent were agreed with the fact that Quality of Shoes has
impact on customer satisfaction.

Frequency Percent

Natural 7 2.8

Agree 24 9.6

Strongly Agree 219 87.6

Total 250 100.0

Table 4: Frequency distribution of Quality of shoe

3.3.3 Brands offered

The findings suggest that, Brands of Shoes offered by the Store is an important factors to 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 Fashionable Style has impact on customer
satisfaction.

23
 Frequency Percent

12 4.8
Disagree

Neutral 59 23.6

Agree 109 43.6

Strongly Agree 70 28.0

Total 250 100.0

Table 5: Brands of shoes offered

Out of 250 respondents 199 respondents were male and 51 respondents were female.

Frequency Percent

199 79.6
Male

Female 51 20.4

Total 250 100.0

Table 6: Frequency distribution of sex of the respondent

3.3.4 Respondents Age

The respondent age group was categorized in eight groups. The aximum number of respondents
falls in to the age group of 25-34. The next higher number was in the age group of 18-24.

Frequency Percent
Under 18 5 2.0
18-24 79 31.6
25-34 106 42.4

24
 35-44 33 13.2

45-54 20 8.0
55-64 5 2.0
25.00 2 .8

Total 250 100.0

Table 7: Frequency distribution of Age of the respondent

3.3.5 Comfort of shoes

The findings suggest that, comfort of shoes is an important factor to the respondents those were
surveyed. From the frequency distribution it is found that almost 84% respondent were strongly
agreed with the fact that Comfort of Shoes has impact on customer satisfaction.

Frequency Percent

Neutral 11 4.4

Agree 31 12.4

Strongly Agree 208 83.2

Total 250 100.0

Table 8: Frequency distribution of comfort of shoes

3.3.6 Fashionable Style

The findings suggest that, Fashionable Style is an important factors to the respondents those
were surveyed. From the frequency distribution it is found that almost 85% respondent were
more or less agreed with the fact that Fashionable Style has impact on customer satisfaction

Frequency Percent
Strongly Disagree 1 4

Disagree 2 .8

25
 Neutral 36 14.4
Agree 91 36.4
Strongly Agree 120 48.0
Total 250 100.0

Table 9: Frequency distribution of fashionable style

3.3.7 Selection of Colors, Style and Sizes

Selection of colors, styles and sizes 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 Selection of colors, styles and sizes has impact on customer satisfaction.

Frequency Percent

Disagree 9 3.6

Neutral 14 5.6

Agree 91 36.4

Strongly Agree 136 54.4

Total 250 100.0

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

3.4 MARKET SEGMENTATION

Market segmentation is the process of dividing a broad consumer or business market, normally
consisting of existing and potential customers, into sub-groups of consumers based on some type
of shared characteristics..
3.4.1 Demographics Segmentation
Demographics segmentation is a common strategy where it is possible to
identify market segments based on shared demographic or personality qualities.

26
 3.4.1.1 Age
Age plays an integral role in how companies promote their products online and offline.
Segmenting market by age often involves diversifying pricing and color options, and adjusting
features to fit the anticipated needs and expectations of each age group. Like Bata released
BUBBLEGUMMERS and BATA SCHOOL for kids (3-5) & teenagers (8-12).

3.4.1.2 Gender
While the target market for a given product can include females and males, one gender may
represent a larger share of a company's target market. Businesses can segment their markets by
gender, and come up with variations of their products devoted to serving a specific gender or
alter their marketing campaigns to appeal to the male or female segment. Like, Bata Shoe
Company, that manufactures men and women's shoes, created a new segment MARIE CLAIRE
for the women customers and promote a new dress line, while WEINBRENNER promoting a
new style collections for the men.

3.4.1.3 Income
When companies develop pricing strategies for their brands and products, they consider the
income levels of their target markets. Salary, or income level, is an example of a demographic
segmentation businesses use when they prepare to introduce a product to the market or initiate a
sale. For example, Sandak by Bata had created affordable Sandals, targeting to reach customers
who cannot afford their high-end, more expensive lines. On the other hand, WEINBRENNER
was created with more expensive lines.

3.4.1.4 Education
Education also plays an important role in how companies promote their products. Segmenting
market by education often involves diversifying pricing and color options, and adjusting features
to fit the anticipated needs and expectations of each age group. Like B.First by Bata introduced
targeting School students with School Socks and Light Weight Sporty School Shoe.

3.4.1.5 Occupation
Businesses who offer products and services to individuals and businesses in specific professions
or industries may use their demographic data to segment their markets by occupation.
Occupation may be Blue Colored, White Colored etc. For Example, Hush Puppies is targeting

27
White Colored persons, whereas Bata Comfits targets those Blue colored whose profession
requires them to perform a good amount of manual labor, so that they can feel comfort in
footwear.

3.4.1.6 Family size

1 person (Single), 2 (Couple), 3 (one Kid), 4, 5 or more. Family sizes also play a major issue in
the purchase decision of your product if it is a footwear also. Say for example, a married person
(Middle class) with three school going kids will think twice before purchasing a official Hush
Puppies due to high price of that particular brand.

3.4.1.7 Family life cycle

Young, single, engaged, DINKS (double income no kids), SINKS (single income no kids),
married with kids (babies, toddler, elementary school age, teen, older), recently divorced, empty
nester (children have moved out), same-sex couples, single parents, extended parents
(grandparents raising their grandchildren), retired (either wealthy or Medicare dependent/poor).
Like a person was born in 1990 liked to wear Bubblegummers due to style range, this generation
is today adult & usually goes for Comfit// Hush Puppies.

3.4.1.8 Generation
Silent, Matures, Baby Boomer, Gen X, Gen Y, Boomlets. For Example, Generation born
between 1990-2000 liked to wear Bubblegummers due to style range, this generation is today
adult & usually goes for Comfits/Hush Pupies.

3.4.1.9 Social Class

This includes Upper class, middle class, lower class etc. Bata segmented their market in this way
as well. Like for mens Upper class Hush Pupies, middle class Bata, lower class Patapata.

3.4.1.10 Nationality & Culture

American, French, English, African, Russian, Indian etc. Base on Nationality & Culture
consumer choices differ. For which few designs are very popular in UK which are not likely
famous in Bangladesh/India due to culture.

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 3.4.2 Geographic Segmentation
Geographic segmentation is when a business divides its market on the basis of geography. We
can geographically segment a market by area, such as cities, counties, regions, countries, and
international regions. Also we can break a market down into rural, suburban and urban areas.

3.4.2.1 Location/Country
Location/Domestic/International. As an international brand Bata has different stores globally as
it is a MNC. However, shoes available in stores of South Africa/China are not available in Bata
Shoe Co. Bangladesh Ltd. stores.

3.4.2.2 Region
North, South , East, West. Like Bata segmented their market as North America, Asia Pacific,
Europe & Rest of the world.

3.4.2.3 Regions within that country

For Example Dhaka, Chittagong, sylhet etc. Based on Location bata keeps different styles
emphasizing regional economic & social status.

3.4.2.4 City/Metro density of population

Urban, Semi urban, Rural. In Urbal retail stores & Rural stores of Bata is quite different due to
economic condition, choice, lifestyle.

3.4.3 Psychographic Segmentation

Psychographic segmentation involves dividing your market into segments based upon
different personality traits, values, attitudes, interests, and lifestyles of consumers.
This segmentation is advantageous because it allows you to engage in product design
and marketing in a focused manner.

3.4.3.1 Personality
The personality of a person can be defined as a set of psychological characteristics, which in turn
influence the way we think feel and act socially or individually. Power (Bata) has been given
personalities similar to target markets (Sporty) in order to stimulate sales.

29
 3.4.3.2 Lifestyle
Different people have different lifestyle patterns and their wants and needs change based on
those patterns. A subset of lifestyle, activities interests and opinions also affect consumer buying
behavior. Different customers might have different activities and interests. I might like the sports
shoes and you might like formal shoes. But both of us like walking! Similarly, Activities,
interests and opinions tell us a lot about a customers psyche. Segmentation by lifestyle considers
where the consumer is in their life cycle and what is important to them at that exact time.
Considering Lifestyle of consumers Bata has different segments- Formal, casual, sports, outdoor,
sandals etc.

3.4.3.3 Atitude
Attitude is a predisposition consumers have toward a product or service. For example,
consumers might be skeptical about the value of Bata as it is durable coming with other brands
or they might hold a negative opinion about bata due to experiences.

3.4.3.4 Perception
Bata provides the best quality at a moderate cost comparing with other global brands.

3.4.4 Behavioural Segmentation

Behavioral segmentation is a marketing strategy based on actual consumer buying behaviour. It
divides the market into groups of customers according to their knowledge of, attitude towards,
use of or response to a product. In order to divide customers into groups marketers look at their
patterns of buying and using, patterns of spending money and time, their lifestyle and other
factors.

3.4.4.1 Benefits sought

Several products are targeted towards the benefits sought by the customer. Like, there has been a
market war between Bata and Apex to target the people who are Diabetics patient launching by
medicated shoes. Similarly, there are other brands which are targeted towards comfort during
wearing.

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 3.4.4.2 Occasion
Consumption patterns can be changed by targeting `occasion`. Research shows that during
festival seasons consumers became less-price sensitive and purchase more premium priced
products. Therefore, new design shoes for will sell out on different occasions like Eid, Puza, etc.

3.4.4.3 Usage rate

Usage rate divides customers according to the level of usage they make of the product. We can
distinguish heavy, medium or light users. Heavy users will use and buy formal shoes quite often
while light users will buy them rarely. The objective of an organisation should be to attract heavy
users who will make a greater contribution to sales.

3.4.4.4 Loyalty Status

Customers can be grouped according to their level of loyalty to the product. Consumers are loyal
to brands at different levels. Some individuals will always buy a particular brand, others will buy
this brand occasionally and „switchers‟ will switch between brands. Many companies try to
segment their markets into those where loyal customers can be found and retained as it is much
more profitable than acquiring new customers. The best example of behavioural segmentation by
loyalty can be seen in Comfit/Hush Puppies are designed in a way that these can retain their
customer who seeks comfort & lucrative looks.

3.4.4.5 Buyer readiness stage

Another variable is a Buyer readiness stage where customers are segmented according to their
readiness to purchase the product. There are 6 stages of buyer readiness (awareness, knowledge,
liking, preference, conviction and purchase). Bata follows Sales promotion discounts and
personal selling through sales representatives to encourage customer to purchase.

CHAPTER 04: FINDINGS, RECCOMENDATIONS AND CONCLUSION

4.1 FINDINGS
 The name Bata achieved such a position in the customers mind that whenever they heard
the name of Bata, footwear with quality into their mind. From the survey it is found that

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 when people are asked about Bata they refer to the quality of shoes those they are using
from childhood.
 Why Bata is the first brand that comes to potential customers minds when they think of
purchasing footwear is because of Bata has a huge brand presence in Bangladesh due to
its long time operations and its quality is seemed to be reliable. These combine to from
the reason.
 Value for price offered by the store is an important factors to the respondents those was
surveyed. From the frequency distribution it is found that almost 85% respondent were
more or less agree with the fact that value for price offered by the customer. Base on the
quality of Bata most of the people said Bata‟s price is fair reasonable then the others.
Although there are some shoes which are highly priced by Bata, but those are of push
quality. To maintain the higher quality prices are little high.
 Bata is a leadership position in the footwear industry for providing quality products. The
finding suggest that, quality of shoes is an important factor to the respondents those were
surveyed. Almost 97% respondents were agree with the fact that quality of shoes has
impact on customer satisfied and they are more or less satisfied with the quality of Bata.
 The finding suggests that, comfort of shoes is an important factor on the respondents
those were surveyed. Almost 84% respondents were strongly agreed with the fact that
comfort of shoes has impact on customer. Bata has a strong team who always work for
the development of the products.
 Fashionable style is an important factor to the respondents those were surveyed. Now a
day‟s people are more fashion concern that is way they agreed with the fact that
fashionable style has impact on the customer. From the comparison it is found that Bata
is lacking in these very criteria then the competitors.
 Selection colors, styles and size is an important factors to the respondents those were
surveyed. From the frequency distribution it is found that almost 90% respondent were
more or less agreed with the fact that selections of colors, style and sizes has impact on
the customer positively related.
 Brands of shoes offered by the store are important factors the respondents those were
surveyed. From the frequency distribution it is found that almost 72% respondent were

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 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.

4.2 RECOMMENDATIONS

From the research, it is evident that Bata has a large loyal customer‟s base throughout Dhaka city
who are more or less satisfied with Bata‟s products and services. For now it seems that word of
mouth and brand recognition are in a quite secure position. However Bata can take some steps to
improve their customer relationship and to attract new potential customers.

 Bata fails to reflect up to date fashion shoes for its customers. Customers think that other
competitors always bring fashion shoes for the customers. If Bata can bring up to date
products in the market place, the sales return of the company undoubtedly increased into
double. It is also recommended that Bata‟s market share will increase by up to date
fashion shoes.
 Bata has good brand awareness but their lack of promotional activity causes many of the
new offering unnoticed. To overcome this difficulty Bata can introduce brochures (direct
mail), news paper ad regarding their new arrivals and price discount scheme.

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4.3 CONCLUSION

Bata Shoe Co. Bangladesh Ltd. 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. Bata Shoe Company compared with 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 are. Bata has a loyal customer 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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