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Bata Shoes Bangladesh
Bata Shoes Bangladesh
1.0 INTRODUCTION
The Bata Shoe Organization was founded in 1894 by Czech businessman Tomas Bata in the city of Zlin, what was then Czechoslovakia. Coming from a family of shoemakers with a long heritage of eight generations and over three hundred years, Tomas Bata capitalized on knowledge, expertise and skills to propel his newly founded company forward. The introduction of factory automation, long distance retailing and modernized shoe making ensured the profitability of the company from the very beginning. It is now the worlds largest manufacturer and marketer of footwear operating across the globe. Today the Bata Shoe Organization is a sprawling geo-centric company encompassing operations in more than 70 countries around the world and is managed by 4 regional commercial business units (CBUs) across five continents. It serves 1 million customers per day, employs more than 50,000 people, operates 5,000 retail outlets, manages a retail presence in over 70 countries and runs 27 production facilities across 20 countries.
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Managing Director
Head Of HR
Head Of Accounts
NRSD Manager
Production Manager
Purchasing Manager
Merchendising Manager
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Bata shoes have been time tested to be the most reliable in durability and accessibility. They care for clients across the board with a wide range of styles at reasonable prices.
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.
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 abovementioned age group of children.
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 woman who wants reasonably priced, decent design and durable shoes for work and this brand in many cases serves this segment well.
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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.
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 every Bata footwear.
Bata first earn its name as the most durable shoe manufacturer for school going children. When it first comes to this country it has realized that there is a huge market opportunity for school shoes. Quickly they introduced the Naughty Boy shoes. Which quickly earn recognition among the parents of that time, as they need a durable shoe that really can last even after lots of rough treatment. From there on Bata gone on to make Canvas shoes, other black leather shoes, hard top white sneakers for school goers. The most popular brand of school shoes that are now in the market are North Star which provides hard and soft white sneakers and the leather black Bata school shoes which are of various designs.
Apart from these Bata has numbers of leather sandals of various designs, sandal-shoes under Bata brand name that serves different segment of the market. Bata also manufacture and market popular brands such as HushPuppy, Dr.Scholes and Nike in this region of south Asia. Bata also have quite new brands for male and female like Bata Comfit, Bata Flexible. According
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Depot
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Market-Geography Strategy choices 1. Local-Market Strategy 2. Regional Market Strategy 3. National Market Strategy 4. International Market Strategy
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Increased growth. Increased market share. Keep up with competitors Market-Entry Strategy choices 1. First-In Strategy 2. Early-Entry Strategy 3. Laggard-Entry Strategy Among the Market-Entry choices, Bata Bangladesh uses First-In strategy which is characterized by the following: Definition: Entering market during the introduction stage. Two modes of entry are feasible: Conventional marketing strategy Initiator- Entering market with unconventional marketing strategies
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Low margin on sales. Lower unit costs relative to competition due to economies of scale. For established products choices: 1. Maintaining the price 2. Reducing the price 3. Increasing the price When the products of Bata Bangladesh were established in the market they used 'Maintaining the price Strategy' which is characterized by the following: Objectives: To maintain position in the market place (i.e. market share, profitability, etc.). To enhance public image. Requirements: Firm's served market is not significantly affected by changes in the environment. Uncertainty exists concerning the need for or results of price change. Firm's public image could be enhanced by responding to government public opinion to maintain price. requests or
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Price-Flexible Strategy choices 1. One-Price Strategy 2. Flexible-pricing Strategy 3. Product-Line Pricing Strategy 4. Leasing Strategy 5. Bundle-Pricing Strategy 6. Price-Leadership Strategy 7. Pricing Strategy to build market Share Among the price-flexible strategies, Bata Bangladesh uses the 'One-Price Strategy' and the 'Pricing Strategy to build market Share' which are characterized by the following: One-Price Strategy: Definition: Charging the same price to all customers under similar conditions and for the same quantities. Objectives:
To simplify pricing decisions. To maintain goodwill among customers.
Requirements: Detailed analysis of the firm's position and cost structure as compared with the rest of the industry. Information concerning cost variability of offering same price to everyone. Knowledge of the economies of scale available to the firm.
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Creation of a barrier to entry to the industry. Ultimately cost leadership within the industry. Promotional Strategy choices
Technological Environment
Customer
Corporation
Competition
Social Environment
Economic Environment
SUPPLIERS Rubber from local source, leather from local source. Some sole from other subsidiaries of Bata like India and China Bata
COMPETITORS:
BUYERS: Infant,
teen, young, old. Lower- middle to
upper class
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7.0 RECOMMENDATIONS
Give sales discount and free samples to influence more sales in the growing shoe market. Reduce the price level. More advertisements should be aired. Should build awareness among the potential users of this type of footwear product. Bring more design, color, and design combination to be competitive. To merge with the local companies and to expand more segmentation.
8.0 CONCLUSION
From the analysis of Bata Shoe Company Bangladesh Ltd and the shoe industry i 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.
9.0 REFERENCES
www.batabd.com Annual Report 2010 Various Secondary Sources
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