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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 # 514


Course Name: International Managemet

Submitted to:
Professor(Dr) Khondoker Bazlul Hoque
Chairman & Course Instructor
Department of International Business
Faculty of Business Studies
University of Dhaka

Submitted by:
Md. Mahabubus Sajjad
ID: 80802074
15th Batch Evening MBA Program
Department of International Business

Date: 23 April, 2010

April 23, 2010

Professor(Dr) Khondoker Bazlul Hoque


Department of International Business
Faculty of Business Studies
University 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 Sajjad


ID: 80802074

Acknowledgment

I 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.

II

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 worlds 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
Contents
Letter of
Transmitter. I
Acknowledgment

II
Executive
Summary III

1.0

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
Magazine12
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
Others13

Continuation of Contents
8.0
Media
Plan14
8.1 Reacting target audience.,
..14
8.2 Outstanding the
message14
8.3.0 Media
Strategy..15
8.3.1 Geographic Scope.
.15
8.3.2 Scheduling the
message..15
8.3.2.1 Electronic
Media15
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 productHush
Puppies17
9.1 Advertising plan for the new
product..17
9.1.1 Advertising
objective18
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
Puppies23
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

Appendix
Bibliography

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 objective
To 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 Methodology
Nature 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-1

1.4

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 Limitation
The 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
organizations 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

Page-2

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-3
When 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 firms 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 hotels 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 firms ability to sell the same product worldwide is
further constrained by countries differing product standards.
Page-4

2.3.2 Distribution Strategy


A critical element of a firms 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 firms 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 firms
communication strategy is partly defined by its choice of channelsome firms 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 barriers
3.2.Source effects
3.3.Noise levels
Page-5

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 consumers 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 governmentmandated price controls and antidumping regulations, that limit a
firms ability to charge the prices it would prefer in a country.
Page-6

3.4.1 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 sophistication


4.2 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-7
Company Overview
5.0 Bangladesh and Bata
Bangladesh, 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 Organization


The Bata Shoe Organization is the worlds 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 Bangladesh


Bata 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 Profile


In 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 upto-the minute and diverse designs were crafted to exclusive products catering
to men, women and Children.
Page-8

5.4 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 success


Continuous 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 company
Bata Bangladesh will continue to maintain its leadership in Bangladesh
Footwear market through innovative products and improved services to fulfill
growing customer demands.

Page-9

6.0 Existing Product Information


6.1 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 Brands
With 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-10

7.0 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. Batas 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.
Batas 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

Page-11

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 & Magazines


Print 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 Posters
BATA 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-12

7.3.3 Leaflet
Leaflet 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 strategies


Bata undertakes different sales promotion strategies like coupons, price
reductions, price promotions, contest and premiums in their stores or outlets
for boosting sales. Batas most attractive sales promotion strategy is their
mega sale and clearance sale.

7.3. 8 Others
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 company as well as for product promotion.

Page-13

8.0 Media Plan


The 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 Batas 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. Batas promotional campaigns have been focused on boosting


the market demand for seasonal and festival products.
Batas 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. Batas 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 Batas efficiency to distribute messages to its target audience.
Page-14

8.3 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 Media


BTV 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 abovementioned vehicles.
8.3.2.2 Print Media
Bata 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-15

8.3.2.3 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 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. Batas 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-16

9.0 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 worlds exclusive
footwear, combined with extreme comfort and higher class attitude.

Page-17

9.1 Advertising plan for the new product


9.1.1 Advertising Objective
Identical to the fundamental components of advertising objectives, Batas
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 dont
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 Batas 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.
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9.1.2 Message Theme


The 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 product
As 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.
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Also 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.

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9.1.5 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, directors pay, editing, model
hiring and cameramans 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.
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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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10.0
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

Batas 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 well
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.
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10.5 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 Media


BTV 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.
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As 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 Media
We 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

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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. Batas 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.

Conclusion
On the above we have focused on different aspects, discussed and analyzed
different strategies and tools for successfully developing an ad campaign for
Batas 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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