bata

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INTRODUCTION As a part of the assignment Program of BBA course requirement, we were assigned to do our assignment in Bata Shoe Company (Bangladesh) Limited. COMPANY Auditors Rahman Rahman HuqChartered Accountants9, Mohakhali C/A (11th Floor)Dhaka-1212 Legal Advisers Malik Law Associates Bankers Eastern Bank Ltd.Dutch Bangla Bank Ltd.HSBC Ltd.Islami Bank (Bangladesh) Ltd. Company Secretary Md. Hashim Reza Share Liaison Office 6, B. B. Avenue (2Floor)Dhaka Tannery Dhamrai, Dhaka Registered Office Bata Shoe Company (Bangladesh) LimitedTongi Industrial AreaTongi, Gazipur Factories 1.Tongi Industrial A r e a Tongi, Gazipur 2.Dhamrai, Dhaka

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The business that became the Bata Shoe Organization was established On August 24, 1894.

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Page 1: Bata

INTRODUCTION As a part of the assignment Program of BBA course requirement, we were assigned to do our assignment in Bata Shoe Company (Bangladesh) Limited.

BA CKG RO UND /HI STOR Y   OF   BAT A   SHO E   CO . LTD

COMPANY

Auditors Rahman Rahman HuqChartered Accountants9, Mohakhali C/A (11thFloor)Dhaka-1212

Legal AdvisersMalik Law Associates

Bankers Eastern Bank Ltd.Dutch Bangla Bank Ltd.HSBC Ltd.Islami Bank (Bangladesh) Ltd.

Company Secretary Md. Hashim Reza

Share Liaison Office6, B. B. Avenue (2Floor)Dhaka

TanneryDhamrai, Dhaka

Registered OfficeBata Shoe Company (Bangladesh) LimitedTongi Industrial AreaTongi, Gazipur 

Factories1 . T o n g i I n d u s t r i a l A r e a Tongi, Gazipur2 . D h a m r a i ,   D h a k a

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The  bus ine s s   t ha t   became   t he  Ba t a  Shoe  Organ i za t i on  was   e s t ab l i shed  On August 24, 1894 in Zlin, Czechoslovakia by Tomas Bata, and included his brother Antonin and sister Anna. Although this business was new, the Bata name had been pa r t o f a t r ad i t i on o f shoemak ing fo r e i gh t gene ra t i ons , spann ing t h r ee hundred years. It was one of the first modern-day shoe 'manufacturers', a team of stitch and shoemakers creating footwear not just for the local town, but also for distant retail merchants. This departure from the centuries-old tradition of   t he  one man cobb l e r ’ s workshop  was a   b r and  new concep t c r ea t i ng   an en t i r e l y new   indus t ry . The  Ba t a   en t e rp r i s e   r evo lu t i on i zed   t he   t r e a tmen t   o f   employees and labor conditions. Tomas consistently maintained a human focus, t h e enterprise built housing, schools and a hospital near the shoemaking plant inZ l in .   I t   p rov ided   food and i nexpens ive   r en t   du r ing  ve ry  d i f f i cu l t   t imes .  Ba t a companies later provided rail services, construction, insurance, publishing and a tannery in Zlin."The Ba t a Sys t em" dev i s ed by t he Z l i n t e am, and l a t e r app l i ed i n o the r Ba t a Shoe Organization companies, organized operations into autonomous workshops and departments ("profit centre"), allowing employees to contribute ideas and stimulate  production, and contributed significant breakthroughs in  footweartechnology.  By  1938 Ba t a  Shoe Organ i za t i on  had   e s t ab l i shed   a   un ique   and widespread presence, designing, producing and marketing footwear in more t han  30   coun t r i e s .  The  Ba t a  Shoe Organ i za t i on   r ega rded   i t s e l f a s   a rather than multinational enterprise, making it a priority to contribute to the economy in any new markets it entered. During the 50s, 60s and 70s the Organization redoubled its focus on retailing e x c e l l e n c e , i n t e r n a t i o n a l   f o o t w e a r   b r a n d i n g ,   a d v a n c e d   m a n u f a c t u r i n g techniques and extensive employee training, another Bata tradition that dated back to the Organization's earliest years. The Organization continued to expand i t s   r e t a i l ope ra t i ons ,   p roduc t i on   f ac i l i t i e s   and  moved   i n to  new  coun t r i e s   o f ope ra t i on .  Thomas   J .  Ba t a ,   and son  Thomas  G .  Ba t a ,   con t i nued t o   l e ad t he Organ i za t i on  w i th   t he   t r ad i t i ona l   ph i l o sophy   ensu r ing   t ha t e ach ope ra t i on focused on customer satisfaction. As the world-manufacturing base for footwear shifted to developing countries. New business strategies have been guided by the founding principles of focusing on customers, marketing and employees. Branded products, innovative retail store concepts, lifestyle merchandising, non-footwear products and participative retailing have been introduced.

BATA TODAY

Serves 1 million customers per day  Employs more than 50,000 people

Operates 5000 retail stores

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Manages a retail presence in over 70 countries

Runs 27 production facilities across 20 countries

Ba ta i s one o f t he wor ld ’ s w ides t r e ach ing compan i e s , w i th ope ra t i ons i n 68 different countries. Bata companies strive to listen to the customers in their local markets and clearly identify their footwear needs, and then to provide products that exceed their customers’ expectations in terms of quality, style and value. B a t a   o p e r a t i n g c o m p a n i e s a r e   g r o u p e d i n t o   f o u r   b u s i n e s s   u n i t s   b a s e d   o n similarities in markets and business issues. Each  group benefits from synergies spec i f i c   t o   t he i r r equ i r emen t s ,   such   a s   p roduc t   deve lopmen t , sou rc ing andmarke t i ng   suppo r t .  Each  bus ine s s   un i t   i s   en t r ep reneu r i a l   i n   na tu r e ,   andcan q u i c k l y   a d a p t   t o   c h a n g e s   i n   t h e   m a r k e t p l a c e   a n d   s e i z e   p o t e n t i a lg r o w t h opportunities.

BATA LEADERSHIP POINTS:Bata operates in many different economic and cultural environments around the world, dictating very different types of operations. Although Bata does not sell the same shoes nor does it have identical stores in each country, customers will recognize common elements to the Bata experience everywhere in the world.  These common elements are the Bata Leadership Points.

The best product The best product of Bata companies offers our customers fresh, fashionable footwear and accessories, designed specifically for the needs of the local market. Our shoes are always well made from quality materials.

The best serviceThe best service whe re t he   i n   Ind i a   o r   I t a l y ,   ou r   s a l e s   a s soc i a t e s o f f e r cons i s t en t l y   f i r s t - c l a s s service. They are well trained to ensure a proper fit, and we pledge customer satisfaction.

The best value and   quality  The best value and quality the efficient sourcing and distribution of Bata products, we can control the cost and quality at every step to ensure value to our customers.

The best locationsThe best locations Bata stores are modern, attractive and located conveniently to our customers.B a t a   c o m p a n i e s   u t i l i z e   i n n o v a t i v e   p r o m o t i o n s   a n d   d i s p l a ys t o   d i s p l a y   o u r products in attractive manner.

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BATA BANGLADESH:

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 world’s 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.

In Bangladesh, Bata started its operation in 1962. The company is one of the largest tax–paying corporate bodies contributing Tk. 1.2 billion (year 2009) which represents approximately 70% of tax paid by the entire footwear sector of Bangladesh. Currently Bata Shoe Company (Bangladesh) Limited operates two manufacturing facilities – one in Tongi and the other in Dhamrai. With a production capacity of 110,000 pairs of shoes daily, the company also has a modern tannery facility with an output of 5 million square feet of leather annually. An annual shoe sale currently stands at slightly more than 30 million pairs with a turnover for the year 2009 of Tk 5 billion.

Bata is playing a pivotal role in developing the leather industry of the country. Bata has 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 shoes. This marketing insight has prompted Bata to introduce a number of designers’ collections 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 shoes have been targeted through development of the Power brand.

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Uncompromising quality with striking designs have put Bata shoes in a key position to appeal to different segments of consumers.

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 Stores, are adding a new level of consumer satisfaction. The City Stores incorporate spacious floor space allowing a comfortable shopping experience, modern interior décor enriched with novel shelving systems, fittings, fixtures and lighting that can be found in the large retail shops in the Far East and Europe. Bata has a network of 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. Bata Bangladesh has already developed its vision up to 2013 showing significant business growth as well as increased market share.

One of the critical areas associated with external shareholders and the community at large is the Corporate Social Responsibility Program of the company. From supporting nationwide sports sponsorships and disabled persons to addressing environmental concerns, scholarship programs, charity contributions etc – Bata has always supported individuals and communities in need. A partnership with other voluntary and charitable organizations is another prominent feature of Bata’s corporate social responsibility. Bata, in partnership with CARE, extends assistance to over two thousand rural women in order to become independent entrepreneurs in the Rajshahi, Comilla and Chittagong division selling shoes from door to door under its Rural Sales Programme.

Since its inception, Bata Shoe Company (Bangladesh) Ltd. has strived towards one goal – customer satisfaction. With the vision of building a worldwide family of satisfied customers and dedicated workers the legacy of Tomas Bata continues strong and unabated to this day – the tradition is safe.

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COMPANY PROFILE OF BATA SHOE COMPANY (BD)LTD

In t roduc t i on  o f   a   s t r ong   shoe   l i ne   t a rge t ed   t o   va r i ous  ma rke t   s egmen t s   t o maintain leadership through increased market share.

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. S trategies: Penetration to new & targeted market segments through introduction of shoe lines as per life styles with supportive promotion activities De f ined  number  o f   l i ne s , a s so r tmen t &  quan t i t y   fo r   e ach   s t o r e   a cco rd ing   t o merchandise classification & store profile in order to increase efficiency in distribution.

I d e n t i f i c a t i o n   o f   l o o p h o l e s   i n   c o s t   s t r u c t u r e   t o   i n c r e a s e   p r o du c t i o n 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

BATA’S BUSINESSBa t a  man ufa c tu r e s   and s e l l s   a  w ide   r ange  o f   f oo twe a r  made   f rom   l ea the r , c a n v a s ,   p l a s t i c   a n d   r u b b e r .   T h e   c o m p a n y   s e l l s   o v e r   5 9   m n   p a i r s   p er   y e a r t h ro ughou t   t he   cou n t ry and   i n   ove r sea s  ma r ke t s   such   a s  USA ,  UK, Eu rope , Middle East, etc. The company also markets a range of sports shoes, garments and accessories manufactured by others Foo twea r s a l e s a ccoun t f o r more t han 97% o f t he t o t a l r evenue . Rubbe r and canvas footwear contributes 48% of volumes, leather footwear contributes to30% and  plastic footwear accounts for 22% of volumes. In value terms, leather f o o t w e a r   c o n t r i b u t e s t o 5 8 %   t o t u r n o v e r , R u b b e r   a n d   c a n v a s   f o o t w e a r c o n t r i b u t e s   2 7 % , p l a s t i c   f o o t w e a r   a c c o u n t s   f o r   1 2 %   o f   t o t a l   t u r n o v e r . Acc es so r ie s ,   ga r men t s ,   e t c   a cc oun t   f o r   3%  o f   t u rnove r .  Ba t a  manufa c t u r e s around 50% of its footwear in its own units, while the rest is outsourced. From small-scale man ufa c tu r e r s . Whi l e   a l l   t he   p l a s t i c   f oo twea r   i s   ou t sou rce d ,   i n leather company manufactures 63% of the footwear in-house and in rubber and canvas footwear, 61% is manufactured in-house.

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SOURCES OF PRODUCTION

Bata Bangladesh has four different sources of production:

Own: Bata Bangladesh has two factories in Tongi and Dhamrai. All the rubber and r e l a t ed p roduc t i on  ha s   been  done   i n  Tong i   f a c to ry .  Eve ry   t ype  o f   l e a the r products are been manufactured in the Dhamrai factory. About 92% of all Bata products are produced in these two factories.

Outsourcing:As related and supporting industries are growing in shades of the massive structure of Bata Bangladesh. The pa r t i c i pa t i on o f   outsourcing in the company’s business is 4%.

Import:  With high import duty it is hard for Bata to import a substantial amount from different subsidiaries and other outside suppliers. It can be mentioned that t he du ty fo r impor t i ng comple t e shoe he re i n Bang l adesh i s 101%. Even t hough Ba t a Bang l adesh impor t shoes t o keep up w i th t he ma rke t t r end , which is around 1% in every year.

INTERNAL ANALYSIS:

Target Market:Lower t o m idd l e i ncome g roup a s we l l a s t he uppe r segment.

Basis of Segmentation: There are two different criteria used in order t o   s egmen t   t he  ma rke t . Thus  Ba t a Shoe Organ i za t i on  d iv ided he  marke t “geog raph i ca l l y” a s  we l l   a s   on   t he  ba s i sOf   “p roduc t   t ype”   ( t he r apeu t i c group).

Retail marketing manager:As retail is the highest contributor of the company’s business. Retail marketing manager is responsible for planning, advertising as well as the whole of the retail operation around the country. He also deals with the governmental regulation in respect of price, stability, license, fees etc. for launching new products. It is his responsibility to take initiative to pass all the necessary documents from the regulation board of government. Fo r t h i s r e a son t h i s pos t - r anked t h i rd i n t he h i e r a r chy o f t he companies’ organ gram in Bangladesh.

Wholesale   marketing   manager:  The   func t i ona l   ob j ec t i ve  o f   t he wholesale marketing manager is to monitor and planning of wholesale market operation of Bata Bangladesh, which also is a very important sales channel of the company.

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Merchandising   manager: In charge of the heart of the company the M e r c h a n d i s i n g   d e p a r t m e n t . W h o   r e p o r t s   t o   t h e   C F O   a n d   m a n a g i n g director directly and to some instance to the sales channels especially to Re t a i l ?  A l l   t he   c a t ego r i e s   o f   shoes   a r e   headed by   t he  Merchand i s i ng officer/Category Merchandiser/Buyer who is in charge of every detail of his/her category. He/she is responsible for his category business, choosing the right merchandise according to the market need, distribute it properly and getting the feedback of the performance of his/her merchandise in the market and plan accordingly. He/she on the other hand repots to the Merchand i s i ng  manage r . The re   a r e   ba s i ca l l y   fou r   c a t ego r i e s   i n  Ba t a Bang l adesh o f wh ich a me rchand i se r who i s ba s i ca l l y t he c a t e g o r y   h a s   a   d i s t r i b u t o r , w h o   i s   r e s p o n s i b l e   o f   d i s t r i b u t i o n   o f   t h e merchandise to the right place at the right time and the right amount. A de s igne r   a l so  unde r   t he c a t ego ry merchand i se r  who   i s   r e spons ib l e   fo r designing new shoes according to the market needs and the advice of the merchandising officer.:Production Department:Production division is aimed to increase productivity and quality as much as required without spending more. There are two plant manage r s   on   i n  Tong i and  o the r   i n   Dhamra i .  They   a r e con t ro l l ed by   t he director of production. The function of planning and supply manager is material planning, production planning etc.

Finance   Department: • To maximize the interest of the shareholders of Bata Shoe Co. (BD) Ltd.• T o   a l l o c a t e   t h e   f u n d   i n   a   p r o p e r   w a y   t h a t   m i n i m i z e s   i t s  

c o s t   a n d 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• To ensure discipline, mutual coordination, smooth communication among the

administrative stuff and thereby peaceful corporate environment.• To provide sufficient training and opportunities to the administrative stuff to improve

their skill and efficiency for the well being of the company.• To ensure proper management of the financial matters of selection grade administrative

stuff.Accounts Department:

To ensure conducive financial trend of the company. To ensure sound financial plan in terms of raising and allocation of funds and

thereby maximizing shareholders interest. T o   p r e p a r e   A n n u a l   F i n a n c i a l   P l a n   o f   t h e   c o m p a n y   i n   t e r m s   o f  

b o t h procurement and allocation of fund. T o   m a i n t a i n   b o o k s   o f   a c c o u n t s ,   c o s t   a n d   f i n a n c i a l   a c c o u n t s   o

f   t h e company as per the requirement of law and group head office. To manage the assets of the company.

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To provide financial information and report to the top management for decision making purpose.

Internal Audit Department: To provide reasonable assurance of adequate and effective process of internal control and functioning effectively such that assets are safeguard, p rope r   a ccoun t i ng r eco rds a r e  ma in t a ined ,   f i nanc i a l   i n fo rma t ion  u sed within the business or for publication is reliable.

To confirm transparency in all auditable entities. Pre-audit: To carry out all operational checks. Pos t aud i t :  Conduc t   i n t e rna l   con t ro l   r ev i ew ,   phys i ca l   ve r i f i c a t i on  on

various audit universes. Inves t i ga t i on :  Conduc t   t ho rough   r ev i ew   in   any   spec i f i c   a r ea  o f   aud i t

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”.

Costing Department:Headed by Costing and efficiency manager. The department is responsible for all kinds of costing related issue of the shoe a n d   m a k e s   t h e   h i g h e s t u s e   o f   t h e m a n p o w e r .   T h e   d e p a r t m e n t   a l s o   i s responsible for the highest use of the material consumption and does the costing of the shoes effectively and efficiently.Personnel / Human   Resource Department:

To ensure the proper section of personnel. To help the employees to grow and develop themselves. Maintenance of personnel records. To maintain cordial and peaceful labor management relationship. To ensure discipline among the employees.

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 andexcellence 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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MARKET ANALYSIS OF BATA SHOE CO. (BD) LTD

Within a given environment, marketing strategy deals with the interplay of three forces known as the strategic three C's: the customer, the competition and t he co rpo ra t i on . Based on i n t e rp l ay o f t he s t r a t eg i c t h r ee Cs , formation of marketing strategy requires the following three decisions:1. W h e r e t o c o m p e t e : I t r e q u i r e s a d e f i n i t i o n o f t h e m a r k e t ( e . g . competition across an entire market or in one or more segments)

2. How to compete: It requires a means for competing (e.g. introducing a new product to meet a customer need or establishing a new position for an existing product).

3. When to compete: It requires timing of market entry (e.g. being first in the market or waiting until primary demand is established). Thus Marketing strategy, in terms of these three key constituents, is defined as a n e n d e a v o r b y a c o r p o r a t i o n t o d i f f e r e n t i a t e i t s e l f p o s i t i v e l y f r o m i t s competitors, using its relative strengths to better satisfy customer needs in g iven environmental setting

MARKET POSITION OF BATA SHOE CO. (BD) LTD.

Bata Bangladesh is the largest player in the footwear industry with around 9- 10% volume share and a 60% market-share in the organized segment. BB (Bata Bangladesh) has a market share of 70% in canvas shoes segment while it has ashore of 60% in leather shoes. BB manufactures about 10% of the total Hawaii’s sold in the country. BB competes in manufacturing low priced Hawaii’s with the unorganized sector with its price ranging from Taka35-Taka110 with unorganized sector’s pricing in the range of Taka25-Taka50.Leading competitor in the popular segment of the organized market Apex Shoes. O t h e r o r g a n i z e d s e c t o r p l a y e r s a r e l i b e r t y s h o e s , B a l i S h o e s , W o o d l a n d , Pagasus. Most global players like Adidas India, Reebok, Nike, etc are operating through their Bangladeshi subsidiaries with main focus on premium sports shoes segment, which has an insignificant volume share. Competition is hitting up in the domestic market due to popular brands such as Gironde, Red Tape, Lotus Bawa i n t he i l l ega l and smugg l ing o f t he se shoes . These b r ands a r e ga in ing market share especially in the premium segment

FUTURE PLANS: To improve t he s a l e s and p ro f i t s , BB i s p l ann ing t o i nc r ea se pene t r a t i on be se t t i ng up more r e t a i l ou t l e t s and t ak ing space i n shopp ing ma l l s a c ro s s t he coun t ry . Ex i s t i ng r e t a i l s t o r e s wou ld be upg raded even a s who le sa l e

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depo t s would be set up in smaller towns and semi-urban areas. BB's main efforts will bet a s t r e aml ine s t he who le sa l e bus ine s s . BB ' s t h ru s t i s on becoming marke t i ng driven firm from a manufacturing oriented company. Steps are also being taken t o r educe cos t s , improve d i s t r i bu t i on l og i s t i c s and focus on l aunch o f new products in order to improve the performance of the company. INDUSTRY ANALYSIS: Produc t s t end t o go t h rough d i f f e r en t s t age s , e ach s t age be ing a f f ec t ed by d i f f e r en t compe t i t i ve cond i t i ons . These s t age s r equ i r e d i f f e r en t ma rke t i ng strategies at different times if sales and profits are to be efficiently realized. The length of a product life cycle is in no way a fixed period of time. It can last from weeks to years, depending on the type of product.In case of shoe industry in B a n g l a d e s h i t i s p r e s e n t l y g o i n g t h r o u g h t h e g r o w t h s t a g e s w h i c h a r e characterized by many new consumers entry in the market, by fall in price as e x p e r i e n c e a n d e c o n o m i e s o f s c a l e h a v e b e e n a t t a i n e d , b y d e v e l o p e d distribution channel and by increasing intensity of competition.

SWOT ANALYSIS OF BATA SHOE CO. (BD) LTD

Strengths: Image of the company Quality Product Differentiated line of products Competitive Pricing Strong distribution channel Modern manufacturing facilities Brand loyalty at mass level

Weaknesses: Insufficient promotional activities. Bata at present conducts all the store management activity manually. This results lots of

lengthy paper works, errors & waste of time. Inability to catch the present trend in time Less competitive price due to high cost structure. VAT & tax barrier

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

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concept of Bata can attract them as whole of the family footwear can be available there.

Consumer l i ke d i f f e r en t i a t ed p roduc t s . They l i ke t o shop i n a s t o r e where they serve the whole family.

More competition results in more campaign for products. Business Expansion in Shoe care products U t i l i z e o u t s o u r c i n g e s p e c i a l l y t h e s y n e r g y s o u r c e s t o

a c h i e v e competitive pricing Franch i s ee oppo r tun i t y w i th g loba l b r ands l i ke N ike , Reebok ,

Hush puppy Marke t expans ion oppo r tun i t y i n h igh f a sh ion & va lue fo r money

foo twea r ma rke t f o r a l l c a t ego r i e s o f shoes t h rough Re ta i l & WCSM channels

Threat: Political instability affects the supply of raw materials and distribution of finished

products. Uncontrolled counterfeit of Bata products

ANALYSIS OF COMPETITORS

APEX:Most of their shoes are expensive. They don’t provide any school shoes. The sports shoe they bring into the market are mostly imported “Daddies” shoes and qu i t e expens ive . I n t he men’ s s ec t i on t he mos t domina t i ng co lo r i s b l a ck , i n 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 the irrespective divisions. Usually the normal color and size that are sold elsewhere a r e a l so so ld he r e . They r ema in open eve ry day excep t o f any gove rnmen t h o l i d a y s . T h e y o p e n a t 1 0 i n t h e m o r n i n g a n d r e m a i n o p e n u p t o 1 0 i n t h e 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

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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 c ampa ign . Abou t . 10% marke t sha r e Reebok i s qu i ck ly ga in ing g round and getting attention of the brand conscious segment of the country.

NIKE:Same as Reebok, Nike only offers high quality sports and some children shoes.  Their shoes are also expensive sports shoes ranging from 2000-5000, which are sold most. Best-sold non-shoe items such as T-shirt, tracksuits are ranging from750-2250 taka. They open their store everyday of the week. They brought new design in the market after every 3 months. They don’t have any sales campaign u p t o n o w . S a m e a s R e e b o k b u t t h e i r m a r k e t s h a r e i s l e s s t h a n t h e i r international rival as they have enter Bangladesh market for 6 or 7 years.

WOODLAND:  Trendy high quality shoes for all. They don’t provide school shoes. Dust, Brown and Green are their dominating color in every category. They have lots of non- shoes item like T-shirts, trousers, and shoe polish. The most popular price ranges among those are 695-1395 taka. They open every day from 10:00-9:00. It brings n e w d e s i g n i n a f t e r 3 - 4 m o n t h s . T h e e f f e c t i v e s a l e s c a m p a i g n i s s a m e a s Reebok . Ve ry good qua l i t y t r endy shoes wh ich qu i ck ly ga in ing g round i n t he c o u n t r y . T h i s i s t h e s a m e c o m p a n y t h a t b r i n g s R e e b o k i n t h e c o u n t r y a s 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 800-1200for 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: O p e n everyday9:00-10:00PM in the evening. On average bring out new design after2-3months. 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 t hey a r e i n ma rke t f o r more t han 10 yea r s . The i r ma in l a ck ing i s t he i r poo r 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. Men’s best-sold price ranges are1400-1750 taka, women’s 600-750 taka, no school shoes but have children’s shoes320-400 taka. They remain open every day form 10:30-10:00PM at night.

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CORE COMPETENCIES/STRATEGIES OF BATA   BANGLADESH:

Be obsessed with customer satisfaction. Build reputation for providing quality product. Be dedicated to continuous growth in the market. Widespread availability of Bata shoes in the market. The prices of Bata shoes are very competitive and in many cases

lower than its competitors. Very good d i s t r i bu t i on channe l w i th ded i ca t ed emp loyees a l l

t h rough B a n g l a d e s h a n d e s t a b l i s h e d b e c a u s e o f B a t a ’ s e x p e r i e n c e i n t h e Bangladesh for very long.

Taking opportunity of the lower buying power of the people of the country by providing good quality shoe at a competitive price.

ETHICAL CONDUCT AND CORPORATE   RESPONSIBILITY:

Bata companies have a tradition of being good corporate citizens and seek to c o n t r i b u t e t o t h e w e l l b e i n g o f t h e c o u n t r i e s a n d c o m m u n i t i e s w h e r e t h e y ope ra t e . Ba t a compan i e s conduc t t hemse lve s a s pos i t i ve and con t r i bu t i ng m e m b e r s o f a n y c o m m u n i t y i n w h i c h t h e y o p e r a t e , a n d s e e k t o p r o v i d e employees with a safe and healthy working environment. Bata companies are c o m m i t t e d t o e n s u r i n g t h a t o p e r a t i o n s a r e c o n d u c t e d e t h i c a l l y , a n d i n 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 p ro t ec t ou r peop l e , customers and communities and to protect our natural environment in order to help sustain human development globally.”In t he imp lemen ta t i on o f t h i s m i s s ion , i n t e rna t i ona l gu ide l i ne s have been deve loped i n t he a r ea s o f env i ronmen t , hea l t h and s a f e ty . The e f fo r t s and achievements of Bata companies have been recognized in many countries, by b o t h l o c a l a n d i n t e r n a t i o n a l b o d i e s . T h e c o n t r i b u t i o n t o e n v i r o n m e n t a l conservation includes a role in prevention and education. Bata companies have long standing relationships with groups that have helped several generations of young peop l e become more aware o f t he need fo r p ro t ec t i on o f t he na tu r a l environment

RECOMMENDATIONS:

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G i v e s a l e s d i s c o u n t a n d f r e e s a m p l e s t o i n f l u e n c e m o r e s a l e s i n t h e 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.

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 stepson 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.