Final Work MKT 626 Individual Assignment

8/12/2019 Final Work MKT 626 Individual Assignment

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North South University

MKT 626 (Retail Management and Merchandising)

Section 01

ndividual !ssignment

"om#etitive !dvantage and its Sustaina$ility o% &ata Shoe "om#any (&angladesh) 'td

re#ared *or+

,r Mohammad &a-tiar Rana (&-R)

re#ared &y+

Md Mahmudul .asan

1/1 06 660

Su$mission ,ate+

th !#ril 2013


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ntroduction+

In Bangladesh, Bata started its operation in 1962. Currently Bata Bangladesh operates two

manufacturing facilities in Tongi and Dhamrai. Bata is playing a pi otal role in de eloping the

leather industry of the country. They sells all !inds of footwear which are classified in alignmentwith the different mar!et sectors. Bata has a firm commitment to eco"friendly #usiness and a

state of the art $ffluent Treatment %lant &$T%' has #een set up to pro ide a pollution free

en ironment for #oth wor!ers and the locality. (ashion would ne er #e complete without a well"

designed pair of shoes. This mar!eting insight has prompted Bata to introduce a num#er of

designers) collections for men, women and children. Internationally renowned #rands such as

Bata Comfit, *arie Claire, +ush %uppies, choll, -i!e, Bu##legummers, anda!, ein#renner

and B)first are a few names that testify to the momentous change towards #randed shoe

mar!eting in Bangladesh. peciali/ed shoe categories such as athletic shoes ha e #een targeted

through de elopment of the %ower #rand. 0ncompromising uality with stri!ing designs ha e

put Bata shoes in a !ey position to appeal to different segments of consumers. Bata has a

networ! of 2 2 retail outlets located strategically in different parts of the country. These retail

outlets are an integral part of our #rand mar!eting. 3s a retail mar!eter Bata esta#lishing an

image of category specialists, e4treme alue retailers and off price retail outlets are at rural and

factory site.

Segmentation and target mar-et+

Bata segment their mar!et #ased on demographic and geographic factors. Based on geography

Bata targeted on ur#an to semi"ur#an region. Bata has a retail outlet in ma5or city area in

Bangladesh. Bata distri#utes its product all o er the country through its retail outlets among city

store, large format store, family store, discount store and general store located in main road in

Dha!a, Chittagong, and ylhet. Based on income le el Bata targeted on #oth upper and lower

income people. o in some outlets they store high priced product.


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"om#etitive Strategic !dvantages o% &ata+

3s a largest retail organi/ation in shoe industry in Bangladesh, Bata has some competiti e

ad antages. ne of its competiti e ad antage is high uality product with afforda#le price as

Bata has di ersified product for different target mar!et. 3s stated earlier Bata targets manysegments and they want to penetrate into new mar!et, so they emphasi/ed on product

di ersification to reach large mar!et. Currently Bata hoe Company &Bangladesh' 7imited

operates two manufacturing facilities 8 one in Tongi and the other in Dhamrai. ith a production

capacity of 11 , pairs of shoes daily.

Dura#ility is the !ey competiti e ad antages of Batas product o er their competitors.

They made their product with high uality leather. They don)t ma!e any compromise

with the uality of product.

Con enient location is another ad antages of Bata o er competitor. $specially we can see

Batas) retail stores are u#i uitous around Dha!a city. $ en in a same place we see more

than one outlet. o Bata is trying to reach all of its target mar!et.

Bata has a uni ue merchandise product with greater assortments. It also has a uni ue

distri#ution system. Bata has 1: holesale depots co ering Bangladesh. 0nder these

depots :9 ; D &;egistered holesale Dealers' and


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ad antages. $ach of these techni ues includes de eloping an asset=loyal customers, strong

source connections, dedicated effecti e +; and effecti e > efficient systems, and con enient

locations=that is not easily copied #y opponents.

Competiti e ad antages of Bata will #e sustaina#le in long run. Bata always emphasi/ed

on customer satisfaction. (rom #eginning their operation con inced the customer and

they consistently !eep their promise. Bata stores are modern, attracti e and located

con eniently to their customers. They utili/e inno ati e promotions and displays to

display their product in attracti e manner.

7ocation ad antages is strong point of Bata to #e sustaina#le in future. 3nother ma5or

change in the Bata #usiness policy is the segmentation of retail outlets according to

profiles of different mar!et segments and the introduction of no el concepts such as Bata

City tores. These selecti e outlets, in con5unction with other types of outlets such as

Bata Ba/ar and Bata (amily tores, are adding a new le el of consumer satisfaction. The

City tores incorporate spacious floor space allowing a comforta#le shopping e4perience,

modern interior d?cor enriched with no el shel ing systems, fittings, fi4tures and lighting

that can #e found in the large retail shops in the (ar $ast and $urope.

Bata pro ide di ersified product to their customers. 3ccording to the Bata official in

Bangladesh Bata ha e more than 1 lines of footwear)s here in Bangladesh at present.

Bata)s well"!nown #rands are %ower &athletic shoes', Bu##le"@ummers &children shoe',

*arie"Claire &women shoe', +awai, -aughty #oy, anda!, -orth" tar &ur#an shoe' etc.

has greater influence in customer choices among retail outlets and maintains perfect

customer relationship management with its e4isting system and as a mar!et leader it can

capture untapped mar!et of different regions of Bangladesh through maintain this perfectC;* process.

Bata has some promotional strategies to #uild strong relationship with different mar!et

segments. Bata already has international #rand image. TAC &tele ision commercial' is


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their one of the tool to aware customer a#out their #rand image. *ost of the TAC of Bata

ha e #een framed with family and friends, so that the #rand is associated with lifestyle

and gains popularity among all age and groups. Bata also fre uently pro ide

ad ertisement in the prominent newspapers and lifestyle maga/ines of Bangladesh

especially #efore festi als li!e $id"ul"fitr. Bata has #ill#oard in gateway of Dha!a city >

also some ma5or city and town of Bangladesh. *oreo er, Bata uses #anner, festoons with

its logo in different occasions i.e. pahela #aisha!, pahela falgun. It shows to the

customers that Bata is a part of our culture. Bata pro ides own #randed calendar, glasses,

wall cloc!, des! calendar, pen etc. to its raw material suppliers, distri#utors, dri ers,

dealers, customers on different occasions that is really helpful for maintain relationship

with the targeted segment.

Bata is playing a ital role in de eloping the leather industry of the country. Bata has a

firm commitment to eco"friendly #usiness and a state of the art $ffluent Treatment %lant

&$T%' has #een set up to pro ide a pollution free en ironment for #oth wor!ers and the

locality.

ne of the critical areas associated with e4ternal shareholders and the community at large

is the Corporate ocial ;esponsi#ility %rogram of the company. (rom supportingnationwide sports sponsorships and disa#led persons to addressing en ironmental

concerns, scholarship programs, charity contri#utions etc 8 Bata has always supported

indi iduals and communities in need. %artnerships with other oluntary and charita#le

organi/ations is another prominent feature of Bata)s corporate social responsi#ility. Bata,

in partnership with C3;$, e4tends assistance to o er two thousand rural women in order

to #ecome independent entrepreneurs in the ;a5shahi, Comilla and Chittagong di ision

selling shoes from door to door under its ;ural ales %rograms.

Bata using multi"channel retailing strategy to increase its mar!et share. Bata Bangladesh

is performing store channels and internet channels. There are 2 2 outlets of Bata

throughout the country sells all !inds of footwear which are classified in alignment with


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different mar!et sectors. +owe er, the demand of the Bata product is rising, so there is an

opportunity of mar!et e4pansion. Bata has announced to set up 2 new outlets e ery year

for esta#lishing mar!et e4pansion strategy as a mar!et leader.

Bata has a face#oo! and twitter fan page, online order system and it ta!es paymentonline. 3s electronic usage of fund is increasing and there is increasing demand for

online trading, therefore, it can e4pand mar!et through internet channel also.

Bata doesn)t compromise with their customer ser ice. Their sales associates offer

consistently first"class ser ice. They are well trained to ensure a proper fit, and pledged

customer satisfaction.

Bata has a strong relationship ad antages with the suppliers and outsourcer which gi ethem sustaina#le competiti e ad antages. *ost of the suppliers in Bangladesh would #e

proud to #e part of the Batas) #usiness operation. hich gi es Bata a strong cost

ad antages as they can)t import raw materials due to huge import duty. 3s they can

produce more product per unit cost will #e lower which facilitate them to ma!e pricing

strategy e en in time of inflation.

"onclusion+

(rom a#o e discussion we see Bata has sustaina#le competiti e ad antage which will ma!e them

successful future. ince its #eginning, Bata hoes Company &Bangladesh' 7td. has wor!ed

towards one o#5ecti e 8 customer satisfaction. ith the perspecti e of ma!ing a glo#ally family

of satisfied clients and de oted employees carries on powerful and unchec!ed to this day 8 the

custom is safe.

Documents

Final Work MKT 626 Individual Assignment