TERM PAPER

“GLOBAL MARKETING AND R & D: AN ANALYSIS ON BATA BANGLADESH’’

TERM PAPER

“GLOBAL MARKETING AND R & D: AN ANALYSIS ON BATA BANGLADESH’’

Course Code EIB # 514Course Name: International Managemet

Submitted to:Professor(Dr) Khondoker Bazlul Hoque

Chairman & Course InstructorDepartment of International Business

Faculty of Business StudiesUniversity of Dhaka

Submitted by:Md. Mahabubus Sajjad

ID: 8080207415th Batch Evening MBA Program

Department of International Business

Date: 23 April, 2010

April 23, 2010

Professor(Dr) Khondoker Bazlul HoqueDepartment of International BusinessFaculty of Business StudiesUniversity of Dhaka

Dear Sir:

Here is the report on “GLOBAL MARKETING AND R & D: AN ANALYSIS ON BATA BANGLADESH’’’’ that you authorized me to prepare as the part of course finalization.

In the process of carrying out this research, I have developed a good idea about the Marketing Strategy on Bata Bangladesh and also an analysis on a specific topic. It has bestowed me with opportunity to have the experience of arraying out an effective research. Thank you for giving me this opportunity. I sincerely appreciate this and look forward for further chances.

Sincerely yours,

Md. Mahabubus SajjadID: 80802074

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AcknowledgmentI am extremely grateful to my course instructor Proffesor(Dr) Khondoker Bazlul Hoque to guide me all the way in preparation of this report.Completion of this report has made me grateful to a number of persons. I am also grateful to brand manager of Bata Bangladesh, who provided me with all the necessary information about his organization. I also acknowledge the participation of my respondents who provided a great support by filling up the questionnaire and made the survey for the report a success. Thanks to all of our classmates who gave me some valuable suggestion for preparing this report.

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Executive summary

The objectives of this study were to:

Identify general practices that multinational organizations use across borders for Global Marketing & R & D.

Determine which marketing strategy in Global Market is most

effective.

Determine how marketing and R & D can be performed so they will reduce the costs of value creation obtaining organizational goal.

The roles of marketing and research and development in specific business must be needed. The tension in most international business between the needs to reduce costs and at the same time to local conditions , which tends to raise costs. A global marketing strategy that views the world’s consumers as similar in their tastes and preferences is consistent with the mass production of a standardized output. An international business marketing function must determine when product standardization is appropriate, the way in which a product is positioned in a market, and the promotions and messages used to sell the product, may still have to be customized to resonate with local consumers. Similarly, the firms R & D function must be able to develop globally standardized products when appropriate, as well as products customized to local requirements when that markets most sense.

III

ContentsLetter of Transmitter………………………………………………………………………………………….

IAcknowledgment ……………………………………………………………………………………………… IIExecutive Summary……………………………………………………………………………………………

III1.0

Introduction………………………………………………………………………………………….. ….. 1

1.1 Origin of the report ……………………………………………………………………….. ….. 1

1.2 Objective of the report …………………………………………………………………… ….. 1

1.2.1 Broad objective …………..…………………………………………………………….. …… 1

1.2.2 Specific objective ………………………………………………………………………….. ….. 1

1.3 Methodology …………………………………………………………………………………... ….. 1

1.4 Analysis techniques……………………………………………………………. ………………. 2

1.5 Presentation Information………………………………………………………………………… 2

1.6 Limitation……………………………………………………………………………………………….2

2.0 The globalization of Markets and Brads……………………………….……………… 3 2.1 Market Segmentation……………………....………………………………… ………………. 3

2.2. Marketing Mix in Global Marketing………………………………………….……………..…4

2.2.1 Product distribution……………………………………………………………………………….4

2.2.2. Distribution Strategy………………………………………………………………………….…5

2.2.3. Communication…………………………………………………………………………………….5

3.0 Barriers to International communication………………………………………….... 5

3.1 Cultural Barriers………………………………...……………………………. …………………….6

3.2 Source effects………………………………………………………….….. ………………………..6

3.3 Noise levels….………………………………………………………………………………………..6

3.4 Pricing Strategy……………………………………………………………………………………...6

3.4.1. Price discrimination………………………………………………………………………….....7

4.0 Factors determining the choice of communication………………………....7 4.1 Product types relative to consumer sophistication…………………………………….. 7

5.0 Bangladesh and Bata………………...................................................................8

5.1Bata Shoe Organization …………………………………………………………………………….8

5.2 Bata Bangladesh………………………….. …..…………………………………………………….8

5.3 Product Profile………………………………………………………………………………………….8

5.4. Store Modernization………………………………………………………………………………….9

5.5 Promotion……………………………………………………………………………………………..…9 6.0 Existing Product Promotion……………………………………… ……………………….10

6.1 Product design…………………….………………………………………………………………….10

6.2 Brands …………………………………………………………………………………………………..10

7.0 Current Promotional Activities ……………………………………………………………… 11

7.1 Target Market………………………………………………………………………………………….11

7.2 Promotional activities of the current product……………………………………………….12

7.2.1 Newspaper and Magazine………………………………………………………………………12

7.2.2 Posters………………………………………………………………………………………………..12

7.2.3 Bill Boards………………………………………………………………………………………….. 13

7.2.4 Leaflet……………………………………………………………………………………………….. 13

7.2.5 Television Communication……………………………………………………………………..13

7.2.6 Radio Comminication…………………………………………………………………………….13

7.2.7 Different sales promotion strategies………………………………………………………..13

7.2.8 Others…………………………………………………………………………………………………13Continuation of Contents

8.0 Media Plan…………………………………………………………………………………14

8.1 Reacting target audience.…………,……………………………………………………………..14

8.2 Outstanding the message…………………………………………………………………………14

8.3.0 Media Strategy……………………………………………………………………………………..15

8.3.1 Geographic Scope…. …………………………………………………………………………….15

8.3.2 Scheduling the message………………………………………………………………………..15

8.3.2.1 Electronic Media…………………………………………………………………………………15

8.3.2.2 Print Media………………………………………………………………………………………..15

8.3.2.3 Selecting the Media…………………………………………………………………………….16

8.3.2.4 Cost efficiency…………………………………………………………………………………….16

9.0 Bata to introduce new product””Hush Puppies”………………………………17

9.1 Advertising plan for the new product…………………………………………………………..17

9.1.1 Advertising objective………………………………………………………………………………18

9.1.2 Message theme……………………………………………………………………………………..19

9.1.3. Market segmentation and target audience profile……………………………………..19

9.1.4 Advertising Budget………………………………………………………………………………...20

9.1.5 Answer Phase……………………………………………………………………………………..…21

9.1.6. Acceptance and preference phase…………………………………………………………..21

10.0 Hush Puppies………………………………………………………………………………23

10.1. Media strategies…………………………………………………………………………………….24

10.2. Geographic Scope………………………………………………………………………………….24

10.3 Scheduling the message………………………………………………………………………….24

10.4. Selecting the Media……………………………………………………………………………….25

10.5. Cost efficiency……………………………………………………………………………………...25

11.0

Findings…………………………………………………………………………………….26

12.0

Recommendation………………………………………………………………………..27

13.0

Conclusion………………………………………………………………………………….27

14.0 AppendixBibliography

…………………………………………………………………………… 28

1.0 Introduction

1.1 Origin of the report

This report on the “GLOBAL MARKETING AND R & D: AN ANALYSIS ON BATA BANGLADESH’’ was authorized by Professor(Dr) Khondoker Bazlul Hoque Chairman & Course Instructor, Department of International Business & Course teacher of International Management, to the students of Evening MBA program, Faculty of International Business, University of Dhaka.

1.2 Objective of the report

The objectives of the study are categorized in the following ways:

1.2.1 Broad objectiveTo fulfill the requirement of the MBA course.

1.2.2 Specific objective To know briefly about the BATA Bangladesh. To find out the group influence on BATA users.

To identify the motivational factors that influences the BATA users

1.3 MethodologyNature of the study: Exploratory

Sources of information: Both primary and secondary information sources were used to complete this study.

Primary sources: Primary sources were individuals around us who may or may not have the user of BATA Following factors were considered to collect information:

a. Sampling method: Convenient sampling b. Information collection instrument: Structured

questionnaires for the respondents.c. Sample size: 11 Person

Secondary sources: Secondary information was collected from the local company ‘BATA Bangladesh’ and web site of the parent company.

Page-11.4 Analysis techniques: Statistical techniques were used to

analyze the collected information. Simple mean, mode and median were for analysis.

1.5 Presentation of information: Collected information and findings of the analysis are presented in graphical form

1.6 LimitationThe scope of the report required a through knowledge of the

International Management course. But due to very busy schedule

of the course that was not fully fulfilled. Therefore the relation of

theoretical framework and organization’s perspective would have

been more informative.

Besides several problems were arises to complete this study. They

were:

1. Some of the respondents failed to complete the questionnaire due to unavoidable reasons.

2. The management of BATA Bangladesh did not want to reveal all the information about the product

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2.0 The Globalization of Markets and Brands:

In a now-classic Harvard Business Review, article, Theodore levitt wrote lyrically about the globalization of world markets. Levitts arguments have become something of a lightning rod in the debate about the extent of globalization. According to levitt, A powerful force drives the world toward a converging commonalty, and that force is technology. It has proletarian zed communication, transport, and travel.

2.1 Market Segmentation:

Market segmentation refers to identifying distinct groups of consumers whose purchasing behavior differs from others in important ways. Markets can be segmented in numerous ways: by geography, demography (sex, age, income, race, education level, etc.), socio-cultural factors (social class, values, religion, lifestyle choices), and psychological factors(personality). Because different segments exhibit different patterns of purchasing behavior, firms often adjust their marketing mix from segment to segment. They may vary the precise design of a product, the pricing strategy, the distribution channels used, and the of communication strategy from segment to segment. The goal is to optimize the fit between the purchasing behavior of consumers in a given segment and the marketing mix, thereby maximizing sales to that segment. Automobile companies, for example, use a different marketing mix to sell cars to different socioeconomic segments. Toyota uses it to Lexus division to sell high-priced luxury cars to high-income consumers, while selling its entry-level models, such as the Toyota Corolla, to lower-income consumers. Similarly, personal computer manufacturers will offer different computer models, embodying different combinations of product attributes and price points, precisely to appeal to consumers from different market segments (e.g. business users and home users).

Page-3When managers in an international business consider market segmentation in foreign countries, they need to be cognizant of two main issues: the differences between countries in the structure of market segments and the existence of segments that transcend national borders. The structure of market segments may differ significantly from country to country. An important market segment in a foreign country may have no parallel in the firm’s home country, and vice versa. The firm may have to develop a unique marketing mix to appeal to the purchasing behavior of a certain segment in a given country.

2.3 Marketing Mix in Global Marketing

2.3.1. Product attributes

2.3.2 Distribution strategy

2.3.3. Communication strategy

2.3.4 .Pricing strategy

2.3.1 Product Attributes

A product can be viewed as a bundle of attributes. For example, the attributes that make up a car include power, design, quality, performance, fuel consumption, and comfort; the attributes of a hamburger include taste, texture, and size; a hotel’s attributes include atmosphere, quality, comfort and service. Products sell well when their attributes match consumer needs (and when their prices are appropriate). BMW cars sell well to people who have high needs for luxury, quality, and performance, precisely because BMW builds those attributes into its cars. If consumer needs were the same the world over, a firm could simply sell the same product worldwide. However, consumer needs vary from country to country, depending on culture and the level of economic development. A firm’s ability to sell the same product worldwide is further constrained by countries differing product standards.

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2.3.2 Distribution Strategy

A critical element of a firm’s marketing mix is its distribution strategy: The means it chooses for delivering the product to the consumers. The way the product is delivered is basically determined by the firm’s entry strategy.Other thing important in this connection is the distribution systems whose structure may vary between countries. The four main differences (difference between countries)

between distribution systems are retail concentration, channel length, channel exclusivity and channel quality.Finally the choice of distribution strategy determines which channel the firm will use to reach potential consumers.

2.3.3 Communication Strategy

Another critical element in the marketing mix is communicating the attributes of the product to prospective customers. A number of communication channels are available to a firm, including direct selling, sales promotion, direct marketing and advertising. A firm’s communication strategy is partly defined by its choice of channel-some firm’s rely primarily on direct selling, others on direct marketing, and others on mass advertising; still others use several channels simultaneously to communicate their prospective customers.It is however important to know the barriers to international communication. It is also important to know the factors that determine which communication strategy is most appropriate in a particular country.

3.0 Barriers to International Communication

3.1Cultural barriers3.2.Source effects 3.3.Noise levels

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3.1. Cultural barriers can make it difficult communicate across cultures. Because of cultural differences, a message that means one thing one country may mean something quite different in another. For example,

3.2. Source effects occur when the receiver of the massage evaluates the massage on the basis of status or

image of the sender. Source effects can be damaging for an international business when potential consumers in a target country have a bias against foreign firms.

3.3. Noise refers to the month of other messages competing for a potential consumer’s attention, and this two varies across countries. In highly developed countries such as the United status, is extremely high. On the other hand, fewer firms for the attention of prospective customers in developing countries and thus the noise level is lower.

3.4 Pricing Strategy International pricing strategy is an important of the overall international marketing mix. Here we shall look at three aspects of international pricing strategy.

First , we examine the case for pursuing price discrimination, charging different prices for the same product in different countries.

Second , we look at what might be called strategic pricing.

Third , we review some regulatory factors, such as government- mandated price controls and antidumping regulations, that limit a firm’s ability to charge the prices it would prefer in a country.

Page-63.4.1 Price discrimination Price discrimination exists whenever consumers in different countries are charged different prices for the same product. Price discrimination involves charging whatever the market will bear; in a competitive market, prices may have to be lower than in a market where the firm has a monopoly. Price discrimination can help a

company maximize its profits. It makes economic sense to charge different prices in different countries.

4.0 Factors Determining the Choice of Communication Strategy

The main decision with regard to communication strategy is the choice between a push strategy and pull strategy. A push strategy emphasizes personal selling rather than mass media in the promotional mix. Although effective as a promotional tool, personal selling requires intensive use of a sales force and is relatively costly. A pull strategy depends more on mass media advertising to communicate the marketing message to potential consumers. Although some firms employ a pull strategy and others only a push strategy, still other firms combine direct selling with mass advertising to maximize communication effectiveness. Factors that determine the relative attractiveness of push and pull strategies include.

4.1 Product type relative to consumer sophistication4.2 Channel length and

4.3 Media availability

4.4 The Push- Pull Mix

The optimal mix between push and pull strategies depends on product type and consumer sophistication, channel length, and media sophistication. Push strategies tend to be emphasized:

Page-7Company Overview5.0 Bangladesh and BataBangladesh, a fast developing country in South Asian region has about 160 millions of population. Its capital city Dhaka is emerging day by day as cosmopolitan characteristics. its population, now more than 9 millions, is

increasing with some positive changes. Because of increasing urbanization, fast rising industrialization, smooth transport and telecommunication, expansion of satellite & IT and the winds of developed world, people of the Capital city Dhaka and other major cities like Chittagong, Khulna, Rajshahi, Sylhet and Barisal are refurbishing their lifestyle, thoughts and attitude, consumption practice and purchasing behavior in terms of capacity, quantity and frequency. Having an economic growth rate of approximate 6% per annum, the country is becoming a very promising market that is getting bigger day by day.5.1 Bata Shoe OrganizationThe Bata Shoe Organization is the world’s largest manufacturer and marketer of footwear with activities in more than 64 countries across the globe. Originating in Zlin of now known as Czech Republic by Thomas Bata in 1894.5.2 Bata BangladeshBata Bangladesh established its manufacturing plant at Tongi in 1962. With its two manufacturing units in Tongi and Dhamrai, Bata Bangladesh is producing around 110,000 pairs of shoes daily. It has modern tannery with latest technological facilities to process 5 million square feet of leather yearly. The Tannery is equipped with a high-tech effluent treatment plant ensuring pollution free environment for both workers and the locality of the industry.5.3 Product ProfileIn recent years, Bata has successfully introduced a range of new and improved designs in its product line, enhanced product quality ensuring international standards, maximum comfort and prompt services to customers that brought Bata the highest satisfaction and accomplishment.A range of up-to-the minute and diverse designs were crafted to exclusive products catering to men, women and Children.

Page-85.4 Store Modernization The exclusive product designs are harmonized with the overall tone of the environment in each store. The stores like Gulshan, Banani,

Uttara can be compared with stores around the globe considering looks and services. The shelving becomes more fashionable with the change in display style, lighting and color of the stores in line with the recent store development program.Customer now enjoy improved outlook, varied products with innovative designs, friendly crew and a comfortable ambiance while shopping from any of the Bata outlets.

5.5 Promotion: the motion behind successContinuous Promotion Program are undertaken to inform customers about the innovative New Arrivals.To prove the novelty effect and fulfill social responsibilities of Bata, different events like Bata School Handball tournament, implementation of project to help self reliant women with care Bangladesh, promotion of education and many other sponsor programs are continuously held to promote the good image of the companyBata Bangladesh will continue to maintain its leadership in Bangladesh Footwear market through innovative products and improved services to fulfill growing customer demands.

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6.0 Existing Product Information6.1 Product Design

International designers and technicians conduct advanced product research and establish strict quality control procedures. The focus is on introducing new and exciting products which are competitively priced and give value for money. Whether it is new product or design, Bata's strength lies in worldwide global presence. While local companies are self-governing, each one benefits from its link to the international organization. To remain at the Top, Bata Bangladesh invests substantial amounts in developing new concepts and designs which set standard for the industry. Its recent break through products under its "Bata Tech" brand is the result of untiring efforts of its Product Development Dept.6.2 BrandsWith more than eight renowned brands, which include Emozioni, Marie Claire, Bubble Gummers, Power, they cater to a wide range of choices all over the country. Hush Puppies are one of the world's most comfortable shoes designed for both men and women. Marie Claire is for today's fashion conscious women who love shoes, which match their colourful and vibrant wardrobe. That's not all. For those who want a tough shoe that can weather any storm, we have Sandak to suit their needs. Weinbrenner is simply meant to take you outdoors. With them on you can be rest assured about their rugged character and durability. Kids can take their pick from Bubble Gummers. Power is all about athleticism, for those who love sports and enjoy sporting activities.The following are the available brands of Bata in Bangladesh, which includes a wide range of products –

* Bata Brand * Hawai* Marie Claire * Power* Weinbrenner * Sandak* Bubble Gummers * Emozioni

Page-107.0 Current Promotional Activities

7.1 Target Market

We know that, target market consists of a set of buyers sharing common needs or characteristics that the company decides to serve. Because buyers have unique needs and wants, a seller could potentially view each buyer as a separate target market. Bata, being one of the largest footwear companies of the world has a significant target market. Bata’s target market is the mass segment which is actually the low end segment. Bata also targets the high end segment but they are dealt in a very selective way and with different strategy. Bata’s target market covers all groups of people that include MEN, WOMEN and CHILDREN. It has designed its different products considering the needs of these segments. Demographic, Psychographic and Geographic factors were obviously taken under consideration while deciding the target market of BATA.In general the target market is divided into three Socio economic clsses.

SEC A – This class belongs to those people who has a low level of income and can spend not more than Tk. 200 for buying footwear.

SEC B – This class belongs to people with quite medium level of income and can spend Tk. 200 – Tk. 500 for buying footwear.

SEC C – This class belongs to people who has moderate level of income and can spend Tk. 500 – Tk. 800 for buying footwear.SEC D – This class belongs to those people who have high level of income and spend more than Tk. 800 to buy their footwear.The target Market of Bata according to their product category is given below –

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7.2 Promotional Activities of the Current Products:

Continuous Promotion Program is undertaken by BATA to remind customer about the existing products or to inform new customer about the products.For promotion activity Bata uses all of the very common mediums & tools for promotion like –

Newspaper & Magazines Posters Leaflets Billboards Television Commercial Radio Commercial Sales Promotional Strategies Others

7.2.1 Newspaper & MagazinesPrint ads are done frequently on popular dailies such as the Prothom Alo, Ittefaq, Jugantor, Janakantha, Daily Star, Independent, Financial Express and Bangladesh Observer etc. and most read magazines such as lifestyles, ICE Today, Anandadhara etc

7.2.2 PostersBATA posters are well scattered in almost every corner of the country. In Bangladesh, Bata has access even in the remotest corner. Posters are distributed all over the country with other printed materials.

Page-127.3.3 LeafletLeaflet is given basically in the Bata stores and outlets around the country. It is mostly distributed before different occasions like EID when the sales of Bata products increase to more than 50 % than other times of the year.7.3.4 Billboards

Billboards are also carried out for the promotion of Bata in different places of the country. Usually In suburbs Bata has a good coverage through Billboards.

7.3.5 Television Commercials:Television commercial is obviously a very popular and effective tool for promotion. Bata broadcasts interesting TVCs with attractive jingles in different time slots. The frequency increases mostly before Big occasions like Eid or Puja and etc.7.3.6 Radio Commercials:Bata also broadcasts radio commercial for the promotion of their product. As Bata products has a access to the remotest area of Bangladesh so they have chosen radio commercial as one of the most effective tool for promoting their product in rural areas.7.3.7 Different sales promotion strategiesBata undertakes different sales promotion strategies like coupons, price reductions, price promotions, contest and premiums in their stores or outlets for boosting sales. Bata’s most attractive sales promotion strategy is their “mega sale” and “clearance sale”.7.3. 8 OthersTo prove the novelty effect and fulfill social responsibilities of Bata, different events like Bata School Handball tournament, implementation of project to help self reliant women with care

Bangladesh, promotion of education and many other sponsor programs are continuously held to promote the good image of the company as well as for product promotion.

Page-138.0 Media PlanThe first step of media planning process is to set media objectives that will guide the selection and use of media. This objective pinpoints a clear and measurable target to be attained. It has two main components -

A goal of reaching target audience Distributing the Message

Currently Bata’s media objectives are not exciting and active. But it is expected to be very active as one of the biggest Muslim Festival Eid-ul-fitr is drawing near. Bata’s promotional campaigns have been focused on boosting the market demand for seasonal and festival products.Bata’s current media objective is as follows –8.1 Reaching target audience:

Bata makes sure that they use the media in such a way so that it has the maximum reach. With their existing media plan, Bata has successfully exploited Bangladesh footwear market. Bata’s target audience is generally all groups of people. Using demographic, psychographic and product-usage descriptions Bata efficiently reached its target audience. They depicted a growth of 15 % over the total turnover of the year 2004 which would be attained in the year 2005. Following that target audience was set and message was distributed.

8.2 Distributing the Message:

Bata has undertaken different promotional tool for distributing the message. Media with highest reach is often used. Frequency varies time to time. Last year (2005) Bata had an annual turnover of Tk. 3,064,425,608 and earned a profit of Tk. 206,438,315 which shows that Bata achieved 18 % growth in turnover. These figures undoubtedly describe Bata’s efficiency to distribute messages to its target audience.

Page-148.3 Media Strategy

Media strategy describes the course of action to achieve media objective. Four areas are covered to develop the media strategy. They are –

8.3.1Geographic Scope It concerns about where the advertisement should be placed. Bangladesh is a small country with comparatively low media options. There is very little amount of region-based media. As the country is small, media that has the most reach is used. Product availability is the major consideration under this scope. Most advertising is done in the area where the product is much available. Bata has analyzed its relative sales strength in different geographic area, pinpointed markets that offers highest return used appropriate media to reach audience. 8.3.2 Scheduling the message

8.3.2.1 Electronic MediaBTV has the highest rating among the electronic media for its reach. After BTV it can focus on NTV, CHANNEL I. Interesting TVCs of Bata are broadcasted on those channels as well as on few new channels. Channel 1, Bangla Vision is on their verge to become popular channels. So they are often used.As vehicles Bata uses daily popular

serial and any programs. The times the ads are aired are basically before and during breaks of the above-mentioned vehicles.

8.3.2.2 Print MediaBata uses both English and Bengali versions of Newspapers. Most Poplar newspaper are used for their print media. Apart from newspapers they also publish their ads in Magazines like ‘Anondokantha’, ‘Binodon’ etc.Advertisements on billboards are something that is not done often.

Page-158.3.2.3 Selecting the media

For all types of media they perform an evaluation on the amount of reach. Based on that evaluation the vehicles are ranked. Bata ranks BTV to be their number one electronic media choice due to its mass reach. Followed by NTV and Channel I. ATN Bangla is far down the chart due to its poor transmission. Other new Television channel is also under consideration esp. Channel 1 and Bangla Vision.

8.3.2.4 Cost EfficiencyIn the year 2005 Bata spent Taka 8,516,246 (Annual report 2005) on advertising purpose. It included all means of advertising including Electronic Media and Print media. Bata’s Total turnover in the year 2005 was Taka 3, 064, 425, 608 (Annual Report 2005) and net profit was Taka 206,638,315. Therefore spending taka 8% from the total profit is quite cost efficient. Because due to their huge campaign Bata managed to increase a 18% growth in their annual turnover. If we consider it in a way that Bata invested Taka 8,516,246 only to promote their product and made a net profit of Taka 206,638,315 will surely appreciate the cost efficiency of their Media planning.

Page-169.0 Bata to introduce “Hush Puppies”

Bata is on their verge to launch a new American footwear brand called “Hush Puppies”. Hush Puppies are one of the world's most comfortable shoes designed for both men and women. With more than eight renowned brands, which include Marie Claire, Bubble Gummers, Power, Bata cater to a wide range of choices all over Bangladesh. By introducing the “Hush Puppies” Bata will try to capture the High end segment of Bangladesh.

Bata has always focused on the mass level for developing their product and designed for them. Definitely it covers the widest range of people as well as offers the highest return. But a recent market survey has shown that Bata is loosing potential customers of higher income group due to direct competitors like Woodland, Apex etc. They are providing footwear with much luxury, comfort and durability as well as of modern fashion. They operate their showroom in the posh areas of Bangladesh and targeted high end customers. In order to regain its market at higher end segment and provide customers with more luxurious, comfortable and fashion sensitive footwear as well as of world class, Bata is introducing “Hush

Puppies”. One of world’s exclusive footwear, combined with extreme comfort and higher class attitude.

Page-179.1 Advertising plan for the new product9.1.1 Advertising ObjectiveIdentical to the fundamental components of advertising objectives, Bata’s advertising objectives for this brand also refers to sales objective and communication objective. Penetrating the footwear market of higher end segment in Bangladesh and exploiting the market in order to stay in number one position is the basic advertising objective of Bata for the certain brand.

They advertisement objectives will involve very short-term activities. For the best result and greater effectiveness the set objectives should be measurable within a month or a week. For the new product “Hush Puppies”, we don’t expect carryover effect.They will undertake DAGMAR model for a successful communication objective. Based on the sales impact of advertising, sales objective will be assigned.The following are the advertising objectives for Bata’s upcoming new product –[[

Ad campaign will start one and half months before launching the product. They will aware target audience in a three-week ad campaign before launching. 70% of the total target audience will be exposed to the product in the district headquarters.

People will get to know that Bata is going to launch a new product within two weeks. This will not only expose the product to 70% of its target audience but also to the added 10% people will know about the product. The audience who are exposed to the product will also talk about it to their parent, friends and neighbors.

After launching the product through electronic media, 100% of the target audience will be exposed to the product. It is also important to remained people about the product by continues advertising. Page-189.1.2 Message ThemeThe message theme for the product will be – “One more reason to relax“. As their product is much focused on the comfort of the consumer rather than any other features, they think their message will clearly inform our potential customers about the main specification of “Hush Puppies”. With this message they are also trying to focus on the relation between attitudes and confidence. The target market of this product is the people of higher income range. Therefore, a higher quality and standard in every segment of the message theme will be maintained. Relaxation is among the most wanted desires. People want to relax. People from Higher middle class or higher class want relaxation with a unique style. Even They look for total comfort while they are walking, running or sitting idle. Their new product is designed in such a way that it will assure total relaxation with high class attitude.

9.1.3. Market segmentation and target audience profile

As previsouly mentioned, their new product is targeted towards the high end segment of bangladesh shoe market. Bata will embrace the high-end segments as a part of its target market through “Hush Puppies”. While deciding on the target market and kind of market segment they are advertising their new product to, they are considering that their target consumers are the ones who always believe in quality and who are living in rather a posh area of the town. So basically we are applying the concept of geo-demographic segmentation to the way we are advertising our productAs our store will be located in the posh area of the city our target consumer gets narrowed down to those people who never compromise with quality. Theses are people who are willing to spend that extra amount and also can afford to spend that extra amount of money to get the best quality and unique products. And it is this choice that they make which causes them to stand out in the society as elites.

Page-19Also as they are setting up our shop in the diplomatic zone they have consider the fact that our locality and neighboring areas are housing many foreign nationals who were used to using they quality brand products back in their home town. So once again they are considering the fact of geo-demographic segmentation and targeting only a certain group of consumers

Market Segmentation and Target Audience profile - at a glance –

They are mostly targeting people aged 5 + years and living in urban posh area.

Their target audience consists of both male and female. They are targeting audiences mostly dwelling in district

headquarters and major cities like Dhaka, Chittagong, Rajshahi, Khulna and Sylhet.

Expecting to spent Tk. 1500+ for their footwear. Their target audiences consist mainly of upper-middle class

and higher class people. Upper class people can also be targeted due to the unique features of our product like shape, fragrance and color.

9.1.4 Advertising budget

In their advertising campaign, they are planning to produce ads for 3 types of media. The media are Electronic media (television only), Print media (newspapers, magazines etc.) and Out of home Ads (posters, billboards etc). For the Ad campaign budgets are designated according to the different phases that are involved.

Page-209.1.5 Awareness Phase:

In this phase they will be making teaser type ads that will create awareness about the upcoming product. For that we will have a TVC (television commercial), use print media and posters.

TVC: This ad will run for 2/3 weeks. A 30 second ad roughly takes around Tk. 15, lakh. Which includes production cost, director’s pay, editing, model hiring and cameraman’s pay and for using BETA video recorder to shoot the TVC. They will designate Tk.

25, 000, 00 for media buying for TV, which will be adequate for airing the ad at least three times in the prime hours covering all major TV channels everyday.

Print media: The awareness ads that are made will take up 6.5 column inch space each in a newspaper. The budget for that is designated to be around Tk 20 lakhs. On an average this ad will cost around Tk 90,000 to be published in the front page of a renowned Daily. This Budget will be good enough to publish the ad 6 times in 4 of the major daily newspapers throughout the two-week period. The newspapers that will be used are The Daily Star, Prothom Alo, Jugantor and Janakantha. Magazines will not be used due to length of the communication cycle. Posters A normal size poster with normal graphic work costs around Tk 5 per unit. Around 30000 posters will be manufactured having an expense of Tk 150000. An additional Tk 25,000 will also be designated as sticking posters.

9.1. 6.Acceptance and preference Phase: These phases come immediately after the launching of the product. They will be airing another ad which is a continuation of the first and publishing a more informative add in the print media and the out of home ads.

Page-21 TVC

Unlike the previous TVC the designated cost for this production cost is around Tk 20 lakhs. For airing this time we will designate a lot more. The amount will be around 1 crore for a whole year. First two months the ads will be aired 6 times a week in the prime hours covering all the channels. Later the frequency will decline to about twice a week but in the prime hours.

Print media:

The more informative ad will be published on the day of launch and this should be published at continuous intervals in the first and third pages of each of the 4 newspapers discussed earlier. They will be similar as above for the first couple of weeks but after that the frequency and the size of the ad will decrease. Advertisements on magazines will also be published. A budget of Tk 55 lakh will be designated for the remaining year.

Posters Posters will be published in every district head quarters a day after the launch products. This is due to the fact that distribution takes time. The budget for posters will be same as before.In organizing, sponsoring events and for CSR another Tk. 61, 49,940 (rough) will be designated.The illustrated storyboard of the continuation ad is in the Appendix section.9.2.6 Content: A quick recap of the previous ad will take place. The person will be seen in a perplexed situation. He will try to find out. He will finally get to know that everyone is wearing the new “Hush Puppies” and

therefore they are relaxed. Some how he gets a “Hush Puppies” and he also falls in the trap of relaxation.

Another person will enter in the same scenario and find exactly the same situation. Screen freezes there.

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10.1 Sample Logo

Hush puppies @ Bata- LOGO

10.2 Sample Advertisement

10.3 Media Plan for “Hush Puppies”

As they know, the first step of media planning process is to set media objectives that will guide our selection and use of media. Their media objective pinpoints a clear and measurable target to be attained. It has two main components -

A goal of reaching target audience Distributing the Message

Bata’s promotional campaigns have been focused on boosting the market demand for seasonal and festival products. They have planned to launch their new product just before the upcoming festival of “EID UL FITR” and so we’ll promote the product according to that.

Media objective we plan to attain is as follows –

10.4 Reaching target audience: They have to make sure that they use the media in such a way so that it has the maximum reach. Therefore they can reach their target audience more quickly and take the advantage of the season as well as festival. In the first month our objective is to sell at least 20,000 units.

Page-2310.5 Distributing the Message:

As mentioned earlier, the media with highest reach will be used. Frequency will vary every week. It will increase in a one

week interval. We hope to distribute our message efficiently to meet our projected sale of 20,000 units.

10.6 Media Strategy

Media strategy describes the course of action to achieve media objective. Four areas are covered to develop the media strategy. They are –

10.6.1 Geographic Scope

The target market of our product is basically higher middle class or higher class people. Therefore geographic scope is quite limited in this sector. Major markets in major towns of Bangladesh are the targeted for the all kinds of distribution. Most advertising will be done in the area which is much popular and crowded. We have analyzed its relative sales strength in different geographic area, pinpointed markets that offers highest return used appropriate media to reach audience.

10.6.2 Scheduling the message

10.6.2.1 Electronic MediaBTV has the highest rating among the electronic media for its reach. After BTV we can focus on NTV, CHANNEL I. Interesting TVCs of Bata are broadcasted on those channels as well as on few new channels. Channel 1, Bangla Vision is on their verge to become popular channels. So they will be used.

Page-24As vehicles we will uses daily popular serial and any programs. The times the ads are aired are basically before and during breaks of the above-mentioned vehicles.

10.6.2.2 Print MediaWe use both English and Bengali versions of Newspapers. Most Poplar newspaper will be used for the print media. Apart from newspapers they also publish their ads in Magazines like ‘Anondokantha’, ‘Binodon’ etc.Advertisements on billboards will be done in a regular interval 11 Selecting the media

For all types of media Bata has already performed an evaluation on the amount of reach. Based on that evaluation the vehicles are ranked. Bata ranks BTV to be their number one electronic media choice due to its mass reach. Followed by NTV and Channel I. ATN Bangla is far down the chart due to its poor transmission. Other new Television channel is also under consideration esp. Channel 1 and Bangla Vision. So they will be selected accordingly.

12 Cost Efficiency

In the year 2005 Bata spent Taka 8,516,246 (Annual report 2005) on advertising purpose. It included all means of advertising including Electronic Media and Print media. Bata’s Total turnover in the year 2005 was Taka 3, 064, 425, 608 (Annual Report 2005) and net profit was Taka 206,638,315. Therefore spending Tk. 3 Crore for a brand new product to get more potential customer is quite cost efficient.

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Findings: They are mostly targeting people aged 5 + years and

living in urban posh area. Their target audience consists of both male and female. They are targeting audiences mostly dwelling in district

headquarters and major cities like Dhaka, Chittagong, Rajshahi, Khulna and Sylhet.

Expecting to spent Tk. 1500+ for their footwear. Their target audiences consist mainly of upper-middle

class and higher class people. Upper class people can also be targeted due to the unique features of our product like shape, fragrance and color.

Good relationship. Lack of social commitment. Poor attention pays to consider social cost and

interest. They make obstacles to build up of local company. Has strong tendency to exhausting the local

resources. Modernizing their own product and research.

Poor performance in relation to socio-economic activities.

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Recommendation: Product should be for mass classes’ consumers. Pricing should be fixed up considering rural

consumers. Do not underestimate the potential of the mass

people. Make people feel that all are their important

customer. Providing sufficient and availability of the product

. Need to realize as customers are core elements

of success. Need to change their dominating mentality. Be alert any kind of pricing explosion. Make congenial marketing environment.

ConclusionOn the above we have focused on different aspects, discussed and analyzed different strategies and tools for successfully developing an ad campaign for Bata’s new product in Bangladesh, the world famous footwear brand “Hush Puppies”. I have followed few steps from the marketing management process to elaborate total advertising plan more precisely. Optimum combination strategies were considered during the development of the ad campaign of “Hush Puppies”. The allocated budget is quite cost efficient and it is expected that it will efficiently cover projected steps. Being a premium product, “Hush Puppies” will hopefully reach its target customers following the total plan of ad campaign and pursue them to buy as well as reinforce the purchasing cycle.

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Appendix Bibliography

W.L. Hill International Business by Charles(Chapter-17)

Harzing, International Human Resource Management(Page:227)

www.batabd.com

Corporate intranet sites

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