MKT 470- MARKETING RESEARCH
Topic: A study on Bata Shoes’ success in attracting all different ages of customers of Bangladesh Prepared For: Samy Ahmed (SyA) Faculty Member School of Business Prepared By: Group Members: ID Tashfeen Ahmad 0920796530 Sarah Marzia Rahman 0930759530 Nafiza Nasir 0910227030 Md.Moshiur Rahman 1020936030 Shihabuddin Chowdhury 072723045 Sec: 4 Date: 16/4/2014 Letter of Transmittal

16th April 2014
Mr. Samy Ahmed (SyA)
Lecturer, School of Business
North South University
Course: MKT 470 (Section: 4)

Subject: A study on Bata Shoes’ success in attracting all different ages of customers
Dear Sir,
We are honoured to present you our project report on the study on Bata Shoes’ success in attracting all age customers. We are looking forward for your sincere judgment on reading this report.
We tried our level best to fulfil the requirement of this project by engaging ourselves seriously and giving our best effort to prepare this report. Working hard for this project made us able to understand the basic concept of market research, how to conduct a survey and prepare in SPSS and also able to relate with few concepts that we have learned in this course.

Your kind acceptance and any type of appreciation would surely inspire us. If you need any additional information please contact us at tashfeen_ahmad233@yahoo.com or 01913973608.
Sincerely yours,
_______________
Tashfeen Ahmad
_______________
Sarah Marzia Rahman ________________
Nafiza Nasir
________________
Moshiur Rahman
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Shihabuddin Chowdhury

ACKNOWLEDGEMENT

First of all, we would like to thank The Almighty Allah who has provided us the great opportunity to complete this report successfully. This is our humble attempt to present gratitude in writing this project; we have truly down upon our own experience as the student of MKT 470. Secondly, we would like to express our gratitude to our MKT 470 course instructor Mr. Samy Ahmed (SyA) for the valuable guidance and support. We really appreciate what he has taught us in the whole semester and we would like to express our heart-felt gratefulness for that. After conducting our research, we would need almost all aspects of our marketing concepts and we will forever be grateful to our honourable faculty for that.

Finally, we would like to add a few more words saying that, this report is prepared by a group of novices. There could be unwilling errors and omissions which are entirely belong to us.

Last but not least, we would like to thank all our group members and all others whose names are not mentioned here, but directly or indirectly offered suggestion and guidelines to the completion of our work. We warmly thank them for their kind contribution.

EXECUTIVE SUMMARY:
This report describes the success of BATA in attracting customers from all age groups in Bangladesh. A market research was conducted to check this. An online survey was conducted to obtain views of people regarding BATA. Our respondents were mainly people who purchased shoes from BATA. This report contains correlations, crosstab chi-square test and T-tests between different variables such as age groups, income of respondents, prices of BATA shoes and also emphasizing on style, durability, comfort. We have also included frequency tables as well for better understanding of our research topic.
For our project, we did both primary and secondary research to get proper and better information for our project.
Table of Contents:
Introduction………………………………………………………………………………………1
Company Profile of Bata………………………………………………………….
Literature Review……………………………………………………
Introduction to the Study ……………………………………………….
Objectives of the Study…………………………
Scope and Limitation…………………
Methodology and Sampling………….
Analysis and Interpretation of Data…………………
Findings………..
Suggestions and Recommendations……….
Bibliography………….
Appendix…………………
Introduction

Bata has been one of the most successful brands in our country. It has been operating in Bangladesh from the year 1962 and has performed exceptionally well in the country’s shoe market ever since. Bata Brands has been making tracks around the world for more than a century. The company manufactures and sells shoes under a dozen brands, including the eponymous Bata, Bata Industrials, Baby Bubbles, Eco Fit, and Marie Claire. Bata runs more than 25 manufacturing centers in 20 countries, though most facilities are located in India. The firm's retail operations include some 5,000 Bata stores in 70 countries. Since its founding by Tomas Bata in 1894, the company has sold more than 14 billion pairs of shoes. It is still owned by the Bata family, one of the most celebrated in the world.

In 1894, the company was founded by Tomas Bata, for the generations whose family had been cobbler. During World War I, there found a fast expansion in the business and the company twisted to moderate manufacturing. It’s actually family based business and headquartered in Lausanne, Switzerland. Bata Branded Business, Bata Metro Markets and Bata Emerging Markets are the three business units operated worldwide by Switzerland. Tomas Bata wanted a strategy by which goods would be sold at very low cost so that maximum people can attain it.

Company Profile of bata
HISTORY OF BATA LTD
The business that became the Bata Shoe Organization was established on August 24, 1894 in Zlin, Czechoslovakia by Tomas Bata, and included his brother Antonin and sister Anna. Although this business was new, the Bata name had been part of a tradition of shoemaking for eight generations, spanning three hundred years. It was one of the first modern-day shoe 'manufacturers', a team of people who does stitches and shoemakers creating footwear not just for the local town, but also for distant retail merchants. This departure from the centuries-old tradition of the one-man cobbler's workshop was a brand new concept, creating an entirely new industry. The Bata enterprise revolutionized the treatment of employees and labor conditions.
Tomas consistently maintained a human focus, creating opportunities for development and advancement, and added compensation for employees based on achievement. As the enterprise prospered, so did the communities where it operated. Tomas believed that focus on people and public service was critical for business success. The enterprise built housing, schools and a hospital near the shoemaking plant in Zlin. It provided food and inexpensive rent during very difficult times. Bata companies later provided rail services, construction, insurance, publishing and a tannery in Zlin."The Bata System" devised by the Zlin team, and later applied in other bat shoe Organization companies, organized operations into autonomous workshops and departments ("profit centre"), allowing employees to contribute ideas and stimulate production, and contributed significant breakthroughs in footwear technology. By 1938 Bata Shoe Organization had established a unique and widespread presence, designing, producing and marketing footwear in more than 30 countries. The Bata Shoe Organization regarded itself as a 'Multi-Domestic' rather than multinational enterprise, making it a priority to contribute to the economy in any new markets it entered. During the 50s, 60s and 70s the Organization redoubled its focus on retailing excellence, international footwear branding, advanced manufacturing techniques and extensive employee training, another Bata tradition that dated back to the Organization's earliest years. The Organization continued to expand its retail operations, production facilities and moved into new countries of operation. Thomas J. Bata, and son Thomas G. Bata, continued to lead the organization with the traditional philosophy ensuring that each operation focused on customer satisfaction. New business strategies have been guided byte founding principles of focusing on customers, marketing and employees. Branded products, innovative retail store concepts, lifestyle merchandising, non-footwear products and participative retailing have been introduced. In 1992, the organization and family were invited to return to the Czech Republic, where Bata had remained a symbol of national pride and achievement.

LITERATURE REVIEW
Marketing scholars have been studying extensively marketing strategy of footwear industries and branded footwear for many years; they suggest that brand equity is most the essential issue for the marketing strategy. Today many sportswear companies have aware the importance of developing the brand equity since it can help them to gain competitive advantage and make management decision (Aaker, 1991). The shoe that fits one person pinches another; there is no recipe for living that suits all cases (Carl Jung, Swiss psychologist 1875 – 1961).
Brand equity is recognized as an essential part that assisting sportswear and footwear marketers or companies gain competitive advantage and make management decision (Tong and Hawley, 2009). Event sponsorship, which includes sports, dance, and cultural events, are fully depend on footwear and directly stimulating products’ sales, and it also can inspire customers’ loyalty on footwear industries(Javalgi, 1994). 68% of sponsorship money is invested in footwear of sports, athletics, and dances (Henseler, 2011). The footwear industries have continued to grow and maintain market share. The future profitability of the footwear industries depend on how well marketers can provide customer with the right mix of product and effectively target customers based on their footwear preferences (Cross, 1999). The consumer’s subjective judgment is more about a shoe company’s overall excellence or superiority. That is, perceived quality is not the real quality of product, but the consumer’s subjective assessment of that product (Zeithaml, 1998). Personal footwear experience, unique needs, and consumption situation can be affecting the consumer’s subjective evaluation of quality (Yoo et al., 2000)

Introduction to the Study:

Rationale of the Study
We conducted this particular study to find out how BATA is able to attract all different ages of customers, and this is part of our Marketing Research course. We decided that this will not only be a good topic to work on but also an interesting one.

Objectives of the Study:

BROAD OBJECTIVE
Determine the satisfaction level of the customers.

SPECIFIC OBJECTIVES * To identify the customers opinion about Bata’s product quality. * To identify the influence of international brand on customer perception in our country. * To describe and discuss how Bata brand the consumer value and buying decisions in our country. * To identify the customers perception of Bata brand value. * To determine which specific age group usually are attracted to Bata Shoes’ products * To determine what type of footwear the customers prefer and expect from Bata Shoes Scope and limitations: * Time constraint: The target population is very large. Within such a short period of time, we were only able to base our research on a relatively small sample size. In addition, because most of us had our mid-term exams and other assignments due, so our time was very limited.

* Inaccessibility: We were unable to talk to the head of the marketing department and other key personnel of Bata shoes stores and get their opinions and insight into what strategies are used to attract customers.

* Poor response: Some customers were not willing to fill out our questionnaire online and some did not understand some questions properly and did not choose any options.

Methodology and Sampling

For our secondary data, we collected information from the Bata Shoes Bangladesh websites as well as information regarding the dynamics of the footwear industry in Bangladesh from other secondary sources.

For our primary data, we conducted an online survey and also took a few personal surveys of about 50 respondents.

Quantitative Methods

For our quantitative method we used online questionnaires. We surveyed 50 customers of Bata. Before giving them the questionnaire online, we asked them if they had purchased at least one pair of shoes from Bata in the last two years. If they said yes, we gave them the questionnaire, otherwise we waited for the next person who did. Similarly, the personal surveys were also done.

Questionnaire Design

The following are the questions that we asked in our questionnaire for the online survey, and the reasoning behind including each question. The questionnaire will be used to assist in finding out Bata Shoes’ success in attracting customers. It is targeted towards all customers (15 years and above) who have purchased at least one pair of shoes from Bata Shoes in the last two years.

Age * 15-25 * 26- 35 * 36-50 * Above 50

Gender * Female * Male

Monthly Household Income (in BDT): * Less than 10,000 * 10,000-25,000 * 25,001-50,000
More than 50,000

PROBLEM DEFINITION:
We wanted to check if Bata was successful as a brand in attracting customers of all age groups from Bangladesh. The questions for us was that in this era, is Bata still successful in getting better customer responses or are they facing still competition from the stylish and cheaper shoes of other competitors in Bangladesh?

Hypothesis: Bata is successful in attracting customers of all different age groups in Bangladesh

Alternative Hypothesis: Bata is NOT successful in attracting customers of all age groups in Bangladesh

Analysis and Interpretation of the Data
The first part of our questionnaire dealt with the personal information of the respondent. Four options were given for income range. The responses indicate that people who visit BATA are as follows:

One Sample Test: Income | | N | Mean | Std. Deviation | Std. Error Mean | Monthly Household Income (in BDT): | 50 | 1.68 | 1.133 | .160 |

The mean income was 1.68. This means that people who visit BATA come from households which fall under the ranges of 10,000 – 25,000 and 25,001 – 50,000.

There were four options given for age. The intervals were assigned values of 1 to 4. The age-group of people who visit BATA are as follows:

One-Sample Statistics | | N | Mean | Std. Deviation | Std. Error Mean | Age | 50 | 1.48 | .646 | .091 |

The mean age was 1.48. This means that people who visit BATA are from the age-groups that range from 15 – 25 and 26-35.

To check the hypothesis, a crosstab with chi-square test was done between age of respondents and price of Bata shoes. A result of .947 was obtained. Since this value is greater than 0.05 the null hypothesis is rejected. This means that BATA fails to attract customers of all ages.

Initially we thought when people get older they become more style conscious but after doing the research we saw that the chi-square test result is .483. This shows that there is no relation between age and style.

When a crosstab with chi-square test was done between household income and price we saw that the result is .886. This means there is no relation between household income and price. So we can accept alternative hypothesis.

A frequency analysis was done. The results for the monthly household income gave us a mean of 1.68, standard deviation of 1.133. Similarly frequency analysis for other variable was also done.

A frequency analysis was done. The results for the monthly household income gave us a mean of 1.68, standard deviation of 1.133. Similarly frequency analysis for other variable was also done. Correlations | | Monthly Household Income (in BDT): | price | Monthly Household Income (in BDT): | Pearson Correlation | 1 | .073 | | Sig. (1-tailed) | | .307 | | N | 50 | 50 | price | Pearson Correlation | .073 | 1 | | Sig. (1-tailed) | .307 | | | N | 50 | 50 |

However we can come to a conclusion that there is no co-relation between household income and price. As we can see from the table previous page the values are above .005. Thus we accept alternative hypothesis.

The below table states that the value is 0.180 which is again greater than .05. So we can say there is no co-relation between age and style. So, we will reject null hypothesis. Correlations | | Age | style | Age | Pearson Correlation | 1 | -.132 | | Sig. (1-tailed) | | .180 | | N | 50 | 50 | style | Pearson Correlation | -.132 | 1 | | Sig. (1-tailed) | .180 | | | N | 50 | 50 |

FINDINGS:

* Most young customers of Bata are between 15-35 years of age.

* Bata’s young customers primarily consist of people from middle to upper-middle age groups.

* Customers feel Bata offers shoes that are more durable and comfortable than other, but do not offer better prices.

* Most people buy sandals and dress shoes from Bata, with others preferred brands such as Marie Claire and Hush Puppies.

* People are not sufficiently satisfied with the way the stores are designed.

* Customers of Bata think that purchasing the product from Bata create a brand image as they feel proud to buy the product from Bata and give preference to Bata before buying a product from somewhere else.

* Old age people do not go to BATA shoes as there is less choice of shoes for them to choose.

Suggestions & Recommendations:

* Fill up more shelf space with particular brands and types of shoes that are preferred by these age groups.

* Upper-middle aged groups seemed less price sensitive, so Bata can afford to keep a larger number of higher priced footwear in their stores. There has to be a balance though because middle class consumers are more sensitive to price.

* Give more priority to their stylish such as Marie Claire and include more designs compare to the international brands like Nike, Adidas, and Gucci e.tc. It can offer better prices in less premium lines such as Bata aged people shoes.

* Find ways that can make the design of the stores more satisfactory to consumers.

* Give more discounts who come frequently especially for the low and middle income customers.

* Bata previously used to have a line of medical shoes for the older people. In order to serve and attract customers of the older age group, they should introduce that line of shoes again.

Bibliography

1. Aaker, David (1996), “Building Strong Brands”, New York: The Free Press.
Aaker, David and Kevin Keller (1990), "Consumer Evaluations of Brand Extensions,"
Journal of Marketing, 54, 1, 27-33. 2. Chain Store Age. (1985). “Value is a Complex Equation,” (May) 14–15, 18. Court,
David C., Anthony Freeling, Mark C. Lerter and Andrew J. Parsons (1997), "If
Nike Can 'Just Do It' Why Can't We," McKinsey Quarterly, No. 3, 25-34. 3. Cravens, David W., Charles W. Holland, Charles W. Lamb Jr. and William C. Moncrieff
(1988). “Marketing’s Role in Product and Service Quality,” Industrial Marketing
Management, 17(November), 285–304. 4. Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests.
Psychometrika, 16, 297-334. 5. Culliton, J. (1948) The management of marketing costs, Graduate School of Business
Administration, Research Division, Harvard University, Boston, 1948. 6. Czellar, Sandor (2002), “Consumer Attitude Towards Brand Extensions: An Integrative
Model and Research Propositions”, Journal of University of Genewa, 46. 7. Douglas, P. Susan (1999), “International Brand Architecture: Development, Drivers and
Design”, Research of University of New York, August. 8. Bolton, Ruth N. and James H. Drew (1991). “A Multistage Model of Customers’
Assessments of Service Quality and Value,” Journal of Consumer Research,
17(March), 375–384. 9. Bata Bangladesh. [Online] [Cited: November 15, 2011.] http://www.batabd.com/.

APPENDIX

1. Questionnaire:

Bata Shoes
This questionnaire will be used to assist in finding out Bata Shoes’ success in attracting customers. It is targeted towards all customers (15 years and above) who have purchased at least one pair of shoes from Bata Shoes in the last two years. Please note that all information collected through this survey will only be used for academic purposes.
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Top of Form
Age
* 15-25 * 26- 35 * 36-50 * Above 50
Gender
* Female * Male
Monthly Household Income (in BDT): * Less than 10,000 * 10,000-25,000 * 25,001-50,000 * More than 50,000

1. What type of shoe have you bought from Bata in the last 2 years? * Dress Shoes * Casual Shoes * Sports Shoes * Sandals

2. Whom do you usually buy shoes for? * Self * Spouse * Kids * Relatives * All of the above
3. Please rank the following Bata-owned brands in order of preference:
(1 for most preferred, 2 for least preferred, 0 for unknown) | 0 | 1 | 2 | Bata Women | | | | Marie Claire | | | | Power | | | | North Star | | | | Sandak | | | |

4. Please rate the importance of the following criteria for you when you purchase from Bata
1= Not at All Important, 2=Not Important, 3= Neutral, 4=Important, 5= Very Important | 1 | 2 | 3 | 4 | 5 | | Price | | | | | | Price | | 1 | 2 | 3 | 4 | 5 | | Durability | | | | | | Durability |

| 1 | 2 | 3 | 4 | 5 | | Style | | | | | | Style | | 1 | 2 | 3 | 4 | 5 | | Comfort | | | | | | Comfort |

5. How does Bata compare to other stores of the same category?
1= Not at All Important, 2=Not Important, 3= Neutral, 4=Important, 5= Very Important | 1 | 2 | 3 | 4 | 5 | | Bata offers better prices than other stores for same categories of shoes | | | | | | Bata offers better prices than other stores for same categories of shoes | | 1 | 2 | 3 | 4 | 5 | | Bata shoes are more durable than shoes offered by other stores | | | | | | Bata shoes are more durable than shoes offered by other stores |

| 1 | 2 | 3 | 4 | 5 | | Bata shoes are more stylish than shoes offered by other stores | | | | | | Bata shoes are more stylish than shoes offered by other stores | | 1 | 2 | 3 | 4 | 5 | | Bata shoes are more comfortable than shoes offered by other stores | | | | | | Bata shoes are more comfortable than shoes offered by other stores |

6. Please rate your level of satisfaction with the following aspects of the Bata “stores” that you have visited:
1=Very Dissatisfied, 2= Dissatisfied, 3= Neutral, 4= Satisfied, 5= Very satisfied | 1 | 2 | 3 | 4 | 5 | | Helpfulness of salespeople | | | | | | Helpfulness of salespeople | | 1 | 2 | 3 | 4 | 5 | | Design (Layout) | | | | | | Design (Layout) |

| 1 | 2 | 3 | 4 | 5 | | Aesthetic Appeal | | | | | | Aesthetic Appeal | | 1 | 2 | 3 | 4 | 5 | | Ease of finding what you are looking for | | | | | | Ease of finding what you are looking for |

7. Do other factors influence your buying? * a. Accessories * b. Matching with other clothing items * c. Current fashion styles * d. Your personal fashion style
8. Please rank the following shoe stores in order of preference:
(1 for most preferred, 2 for least preferred, 0 for unknown) | 0 | 1 | 2 | Bata Shoes | | | | Cat’s Eye | | | | Gallerie Apex | | | | Ena La Mode | | | | Big Buffalo | | | | Hush Puppies | | | |

9. Do you intend to buy more shoes from Bata in the near future? | Definitely will not buy | Probably will not buy | Undecided | Probably will buy | Definitely will buy | | | | | | |

10. When you decide to buy a new shoe, how important is it for you to visit Bata at least once?
1= Not at All Important, 2=Not Important, 3= Neutral, 4=Important, 5= Very Important | 1 | 2 | 3 | 4 | 5 | | | | | | | | | |
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