Global Marketing R & D
Global Marketing R & D
Global Marketing R & D
TERM PAPER
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
Sincerely yours,
Acknowledgment
II
Executive summary
The objectives of this study were to:
Identify general practices that multinational organizations use across
borders for Global Marketing & R & D.
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
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
5.4. Store
Modernization.9
5.5
Promotion..
9
6.0
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.
1.3 Methodology
Nature of the study: Exploratory
Sources of information: Both primary and secondary information sources
were used to complete this study.
1.4
1.5
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:
2. The management of BATA Bangladesh did not want to reveal all the
information about the product
Page-2
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.
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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.
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.
Page-9
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
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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
Posters
Leaflets
Billboards
Television Commercial
Radio Commercial
Others
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.
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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. 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.
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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
8.3.2.4
Cost Efficiency
In the year 2005 Bata spent Taka 8,516,246 (Annual report 2005) on
advertising
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
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
[[
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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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.
Page-19
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
They are mostly targeting people aged 5 + years and living in urban
posh area.
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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.
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
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.
10.6.1
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
10.6.2
11
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.
12
Cost Efficiency
In the year 2005 Bata spent Taka 8,516,246 (Annual report 2005) on
advertising
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.
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Recommendation:
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
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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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