The basic objective of this report is to analysis customer satisfaction assessment of footwear industries, here focus on Bata company limited. Bata is one of the leading company in Bangladesh. Satisfying customers are the only way to stay competitive in today’s market place. This report analysis that how Bata maintain customer satisfaction year by year. Report also contains some problem findings and finally recommend some sol lution.
1.1 The Bata Heritage “Our success is built on our legacy of values and beliefs” "Thomas G. Bata, Chairman and Grandson of Founder"
Every legacy of success begins somewhere. For the Bata Shoe Company, that place was the small riverside town of Zlin, Czechoslovaia, where three Bata siblings gathered a small inheritance from their mother, and officially established the !. " #. Bata Shoe Company. $t was the year %&'( and a remarable tale of enterprise had begun Founder !omas Bata was a visionary dedicated to serving the needs of the people. $n %')(, Bata introduced mechanization and mass production to shoemaing and created the *Batova* + a woring class shoe remarable in its simplicity and style, yet lightweight and affordable. !he Bata name uicly became synonymous with uality and value, and in -ust over two decades Bata was selling million pairs of shoes a year, and e/ports syroceted. !hroughout the early %'))s, even as world war, the 0reat 1epression and Communism loomed, Bata continued to prosper. $n %'2% it began to build factories, and entire towns, outside of Czechoslovaia. $t wasn3t long before before Bata was recognized as an international brand nown for its unmatched selection of styles. By the end of the %'2)s, Bata operated in over three dozen countries.
4ust as the )th 4ust )th century century progress progressed, ed, so did Bata3s Bata3s intern internati ational onal reach. reach. 5hen 5hen Commun Communist ist governments nationalized all Bata companies in Eastern Europe, Bata persevered by rebuilding itself from the remaining entities located outside Eastern Europe. Further e/panding the company3s international umbrella, !homas 4. Bata, the founder3s son, moved from Czechoslovaia to Canada with over %)) families and established the Bata Shoe Company of Canada. Families around the globe relied on Bata to supply them with sensibly priced shoes that met their needs and e/ceeded their wishes. By mid+century, Bata3s superior product earned the trust and confidence of millions and Bata was positioned as the world3s leading footwear e/porter. #s the )th century came to a close, Bata had been building relationships with generations of families for over %)) years. !homas 0. Bata, the founder3s grandson, remained committed to that tradition in the emerging global maretplace. $n a bold move, he replaced large, centralized factories with regional production facilities guided by four *meaningful business units* 67B8s9, each having the fle/ibility and independence to produce footwear that responds to the uniue needs of its region. #s a result, Bata is honored to be a local company in every country it serves. $t is with pride that the Bata Company of today maintains close to :,))) international retail locations and services over one million customers per day. From its simple start over %%& years ago, ago, Bata Bata has grown grown into into a truste trusted d global global company company that that offers offers fashiona fashionable ble and afford affordabl ablee footwear to every member of the family.
5e will grow through the %st century by investing our resources in innovative comfort technology, remaining on the cutting edge of style, and ensuring uality and affordability. ;ow as then, we believe our success is a result of our commitment to our customers, and we3ll continue to loo to the future by reading our past.
Bata Bata Shoe Shoe Company Company is the maret maret leader leader in the footwear footwear industry industry since since its operati operation on in Bangladesh. !he name Bata achieved such a position in the customers< mind that whenever they heard the name of Bata, a footwear with high uality comes into their mind. Bata has been serving its customers with wide assortments of products for about five decades and doing it successfully. $t is very difficult to identify the customers< class of Bata Shoe Company. Bata touches almost every social class possible. Bata meets the footwear demands of the higher class and lower class simultaneously. =owever to stay closer to the customers, Bata shoe company undertaes an assessment of the customers at a regular interval. Bata desires to fulfill the ever changing customer
1.2 Footwear industry in Bangladesh !he Footw !he Footwear ear $ndus $ndustr try y in Bang Bangla lades desh h has has star starte ted d sinc sincee the the colon colonia iall era, era, alth althoug ough h its its modernization too place only in the late %'&)s. 1uring the British period, there was no footwear manufacturing firm producing on a mass scale in East Bengal. =owever, a traditional cottage type footwear industry with limited production facilities e/isted in a seleton form in the district towns during that time. >arious >arious types of footwear were imported, mainly from Calcutta. #fter the partition of Bengal in %'(?, foot wears were imported from 5est 5est @aistan. @aistan. 5hen Bata Shoe Company established its manufacturing plant at !ongi in %'A, it was the first manufacturing plant to produce shoes on a large scale in East @aistan. $n %'A?, Eastern @rogressive Shoe $ndustries 6E@S$9 established its production plant. $t began e/porting footwear to 8SS, Czechoslovaia and England. Both Bata and E@S$ held ma-or shares in the local footwear maret. !he footwear industry suffered a ma-or setbac during the war of liberation but was rehabilitated after independence. ;ew footwear manufacturing units have recently been establ establish ished. ed. #m #mong ong them are #pe/ Footwe Footwear ar,, E/cels E/celsior ior Shoes, Shoes, and @arago @aragon n eathe eatherr and Footwear $ndustries. 4apan and 0ermany are now the biggest marets for Bangladeshi footwear but 8S buyers are increasingly showing interest in sourcing from Bangladesh. Bangladesh could have a billion dollar footwear e/port sector by )%2, claim local shoe manufacturers on the basis of both the curr current ent grow growth th in shipm shipment entss and the the incr increa ease sed d produ product ctio ion n capac capacit ity y in fact factor orie iess under under construction. $f their assessment is correct, in a three+year period the level of e/ports can increase five+fold from the D): million worth of shoes that were e/ported in the last fiscal year that ended in 4une )%).
1.3 Multitude of products Bangladesh has a host of potential products that can earn substantially large amounts of foreign e/change, if only the necessary patronage from the overseas buyers is given for the sae of
e/panding the countryietnam and China in the e/port of footwear and other leather products in the European and other marets. 1.4 Manufacturing Hub Bangladesh is set to emerge as the ne/t manufacturing hub for the global footwear industry. !he cheap labor is prompting top manufacturers to relocate their factories in the country. !he good news is that a number of foreign investors as well as buyers have already shown interest in Bangladesh
!he E/port @rocessing Zones at present have %& shoe and leather goods factories but there are at least seven large factories under construction, mostly owned by big manufacturers in the shoe world. !he factories under construction include orean company oung oneietnam, is also building a large manufacturing facility in Chittagong. #ustralian manufacturer Bonbon Shoe, a supplier to =ugo Boss, and Gen Chen and 0enford of !aiwan., are also building footwear factories in Bangladesh. #pe/+#deichi also has a new factory that will soon start production. 5ith an annual turnover of about D%)) million, the Bangladesh+$taly -oint venture is now the largest e/porter of footwear. =owever, with a new -oint venture factory, Blue Hcean Footwear, due to go into production by February )%%, #pe/ will get involved with a turnover of nearly D)) million of footwear e/port by )%2. 1.5 rowth rate
!he local footwear industry is e/periencing an annual growth rate of % percent, according to a spoesman from another ape/ organization, eather 0oods and Footwear 7anufacturers and E/porters #ssociation of Bangladesh 60F7E#B9. =owever, to continue the trend, the present
level of growth has not only to be attainedI it also has to be taen to a still higher level, if Bangladesh is to match the success of its immediate competitor, >ietnam. #ccording to a newly released statistics from the E/port @romotion Bureau of Bangladesh, footwear e/ports from the country grew from 8SDA% million in the period of 4uly+;ovember ))? to D&: million in the same period of ))&, recording a growth of 2' percent. $n the first four months of the )%) fiscal year there has been D'& million worth of e/ports, a A: per cent increase from the same period last year. !aing this rate of growth into account, shoe industry e/ecutives estimate that the current fiscal yearietnam, who also have a very well entrenched leather and footwear e/port industry. Hrders which earlier used to be given to China or $ndia are now being handed out to footwear manufacturers in Bangladesh because they are able to produce low+priced but uality shoes, which have now found its way in to ey marets in E8 and 4apan. !his growth in footwear e/ports has come as a blessing in disguise at a time when leather e/ports have fallen by a massive %& percent in the period under review. E/perts attribute the growth in footwear e/ports, thans to machineries imported from $taly that is trusted for its uality output. $n recessionary trends, high+priced products tend to register a negative growth, as consumers tend to shy away from them in preference for value for money items. $n this scenario, it is a golden opportunity for the leather and footwear sector to increase its global maret share.
2.! Brief History of Bata "hoe #o$pany Bata Shoe Company was founded by the famous entrepreneur 7r. !omas Bata who blew the wind of change in the footwear industry in %&'(. !he company was started from Zlin, Czechoslovaia, now nown as the Czech epublic. From that day onwards Bata Shoe Company has been the largest manufacturer and mareter of footwear in the world. !he global business of Bata comprises of shoe factories, tanneries, engineering plants, uality control laboratories, product development and research centers. Bata has developed a strong distribution channel all over the world through the establishment appro/imately A,2)) retail outlets, %),))) franchise and thousands of depots and dealers. 7ore than :),))) people are directly involved in the production and selling of over 2)) million pairs of shoes each year. Bata Shoe Company manages a retail presence in :: countries, and runs () production facilities across A countries. Bata international headuarter is located in Switzerland which was previously located at !oronto, in Canada. Bata
2.1 Bata Business Bata Shoe Hrganization companies are involved in every facet of the business of shoes. !hroughout the world, Bata services customers from the store sales floor to the factory floor. •
%etailing
Bata Shoe Hrganization companies have built successful retail store concepts to satisfy changing consumer tastes and needs. Each store features merchandise targeted to different lifestyles and people. !he merchandise ranges from footwear to clothing and goods complementing shoe offerings. Sensitivity to and satisfaction of customer wants and needs has allowed the Bata Shoe Hrganization 6BSH9 to become a world leader in footwear. •
Manufacturing
!omas Bata@ 61irect >ulcanization @rocess9, @>C, athletic footwear production and slush+molded footwear production. •
&holesaling
!he Bata Shoe Hrganization KBSHL en-oys a uniue position in the wholesale maretplace. 0lobal economies of scale enable BSH plants to offer uality products at local prices, with many are operating at $SH standards. Bata Shoe Hrganization production facilities are world renowned for their commitment to uality and customers, and have attracted production contracts from many international footwear brands. •
Brands ' (roduct )e*elop$ent
!hroughout the world, the Bata M brand distinguishes well+made and well+priced footwear. 7any core articles for Bata M branded collections are designed in product development centers in $taly, the Far East and Canada. 1esigners and merchandisers in Bata Shoe Hrganization companies broaden the collections by developing complementary styles to reflect tastes, budgets and climates within their own maret. Strict uality controls govern the selection of materials and all production stages. 2.2 Business +nits of Bata "hoe #o$pany worldwide Bata is operating business in five business units such as Europe, #sia @acific, atin #merica, ;orth #merica, and #frica. Bata announces its worldwide presence through these five business units. 2.3 &orldwide #o*erage of Bata "hoe #o$pany ed zones have already been entered by Bata Shoe Hrganization.
Figure 1, Business +nits of Bata "hoe #o$pany
Figure 2, &orldwide co*erage of Bata
2.4 Bata "hoe #o$pany -Bangladesh /td. Bata Shoe Hrganization started its operation in Bangladesh in %'A. !he company was incorporated in %'?. !he company is affiliated to the Bata Shoe Company, the largest footwear manufacturing and mareting organization. #ccording to Bata Bangladesh website 6)%)9 it is mentioned that currently, Bata Bangladesh operates manufacturing plants at !ongi and 1hamrai, have production capacity of around %%)))) pairs of shoes daily. $t has a modem tannery with the latest technological facilities to process : million suare feet of leather yearly. !he !annery is euipped with a high+tech effluent treatment plant ensuring a pollution free environment for both worers and the environment. Bangladesh
Fashion would never be complete without a well designed pair of shoes. !his mareting insight has prompted Bata to introduce a number of designers< collections for men, women and children. $nternationally renowned brands such as Bata Comfit, 7arie Claire, =ush @uppies, Scholl, ;ie, Bubblegummers, Sanda, 5einbrenner and B
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Guaranteed customer satisfaction. $n any Bata store in the world they repair, e/change or refund any products with defects. !hey also e/change or refund on unworn merchandise if one changes one
3.! Mission ' 0ision Bata Shoe Company has been successfully running for years with a mission and vision at the heart of all its operations. 3.1 Mission Q$ntroduction of a strong shoe line targeted to various maret segments to maintain leadership through increased maret share.R 3.2 0ision Q!o provide good uality shoes at an affordable price by eeping in mind the comfort that needs to be there and providing new designs with it.R Figure 3, Factories of Bata "hoe #o$pany -Bangladesh /td.
)ha$rai Factory
Tongi Factory
3.3 Manage$ent of Bata "hoe #o$pany -Bangladesh /td. Table, Manage$ent of Bata "hoe #o$pany -Bangladesh /td. a$e )esignation 7uhammad Oayyum 7anaging 1irector ee Siew ;0 Finance 1irector 7. =abibur ahman =ead of =uman esource 7inhaz #hmed Chowdhury @roduction 7anager Oayyum han 7ahbub @urchase 7anager uhul #min 7olla ;on etail Sales 7anager Carlos #rturo Zuluaga Sanchez @roduct 1evelopment 7anager Hmar Faisal Chowdhury ogistic 7anager Bishwa-it oy etail 7anager $raz =asan Siddiui 7erchandising 7anager
3.4 rganogra$ of Bata "hoe #o$pany -Bangladesh /td.
3.5 Bata Business Types Bata business policy is the segmentation of retail outlets according to profiles of different maret segments and the introduction of novel concepts. Bata retail store are categorized into four typesJ #ity "tores Bata city stores offer the urban customers a wide variety of current fashion footwear and accessories. !here are : city stores in Bangladesh, %A in 1haa 7etropolitan area, others in Chittagong, Sylhet, and in 7ymensingh metropolitan area. !hese stores are established in prime locations, and provide a high level of customer service, e/clusive shoe lines with complementary accessories and contemporary shopping environments are to discerning shoppers.
Figure 4, Bashundhara Mall Bata "tore -city store
Fa$ily "tores Bata Shoe Company is undoubtedly the world
Bata Baar Bata Bazar is the largest display of Bata
Figure 5, "adarghat Bata Baar )haa #learance utlets
!here are 2 Clearance outlets of Bata Shoe Company where discounted shoes are sold.
Figure 6, )iscounted shoes at clearance outlet
3.6 "&T 7nalysis of Bata "hoe #o$pany -Bangladesh /td.
"trengths
&eanesses
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=igh uality products
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Strong brand image
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E/tensive product lines
=igh @rice 7ore emphasize on uality rather than design
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ac of promotional activities
Strong and mass distribution networ
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ess effort to attract new customers
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5ide range of associated bands
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=igh cost structure
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Silled management employees
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=igh import duties
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7odern manufacturing facilities
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=igh administrative cost
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@otential target maret
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pportunities •
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5ide assortment of products offered
Threats •
Q#pe/R is considered the biggest threats
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@otential new brands lie Bay Emporium
Better customer service •
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ise in e/port 7ore emphasize on product uality and design Strong retail store networ. ;eat " clean retail outletsJ
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Counterfeiting of Bata Shoes in uncontrolled locations Consumer perception regarding high price
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=igh price due to high production cost
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1isruption of consistent supply
!rained salesmen
3.8 #urrent Mareting Mi9 (roduct Bata offers a number of product lines to the prospective consumers in the e/isting maret, Bata has a truly international team whose diversity of ideas to develop new style foot wear, shocs, sneaers, etc. Bata has introduced huge product line of men footwear+ shoes, sandal, sneaers, shocs, women footwear, id
(ta has been delivering hand+crafted uality footwear over %)) years to maintain and build on heritage of creating high uality, comfortable and stylish shoes. Brands Bata stores carry following shoe brands, #mbassador • •
Bata
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B
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Babby Bubble
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Bata ight and Easy
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=ush @uppies
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5einbrenner
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7arie Claire
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Bata $ndustrial
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Bata and $
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;ie @ower ;orth+Star
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Bata Comfit
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Sanda
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Bubble 0ummers
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Scholl
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@ata @ata
Bata Brands,
Hush (uppies, =ush @uppies is the international brand, Bata uses the franchising power to supply the product in the Bangladeshi maret. !he target customers of this model are rich people. Basically it is an #merican brand
&einbrenner, !he weinbrenner shoe line is made up of leather shoes and boots, style in low, mid, and high cut. Cuts or design are directly fashion, but can include materials which help to feel comfort in doing outdoor strong wors. !he shoes are casual in style closures generally with laces and eyelets, sometimes supplemented with hoos, 1+rings and straps with bucles.
ie, ;ie is a worldwide famous and popular athletic shoe brand. Bata carries this brand as a licensing. !his brand is for a different segment of customers in Bangladesh. !hough it is an athlete shoe but in Bangladesh young generation wear it as a fashionable product. !he target customer of this product is higher income group people.
(ower,
@ower is also an athlete shoe which is considered as the alternative of ;ie. @ower shoes are cheaper than ;ie shoes. !he target customer of this shoe is middle class people.
orth:"tar, ;orth+Star is a trendy shoe focused to the young customer group. !his shoe is cheaper than ;ie and @ower. !his is considered as a seasonal product as the demand increase in winter.
Bata #o$fit, Comfit has an important feature in design and assembly of all the comfit shoes. !his brand is focused on both comfort and style of shoes. 8nit rubber, @>C, @8 or ! sole are commonly used in this brand. Q0et comfortable todayR is a tagline commonly associated with this range of shoes.
"anda,
Sanda is plastic made bata product for lower income people to use in every season of the year. !his shoe is also made for rough use for all level of customers.
Bubblegu$$ers, Bubblegummers is the leading children
Bata, Bata is the old and own brand of Bata Shoe Company. But by the time being this brand is updated to fulfill the customers demand.
Marie #laire,
7arie Claire shoes are for women with an active lifestyle who see contemporary modern styles. 7arie Claire shoe stores successfully opened in atin #merica and #sia. Bata Brands is the trademar owner of 7arie Claire for shoes worldwide 6e/cept in 4apan and orea9.
Bata ;ndustrials, Footwear beyond Safety Bata $ndustrials is a specialized division of the Bata 0roup producing industrial and wor+related footwear, hosiery and accessories.
"choll, Scholl is a female brand which is focused for the school going girls.
(lace$ent -/ocation Bata has a networ of ( retail outlets located strategically in different parts of the country this e/tensive retail networ is also supplemented by an eually e/tensive networ of depots and dealers. !he retail outlets are segmented according to the profile of customer and different maret segments. #ccording to the segmentation the three different types of outlets areJ Bata #ity, !he City Stores incorporate spacious floor space allowing a comfortable shopping e/perience, modern interior decor enriched with novel shelving systems, fittings, fi/tures and lighting. !he city stores are established in prime location of metropolitan city. #mong the : city stores %A are established in 1haa and others in ma-or business area. Bata Baar, Bata Bazar holds the largest display of Bata
!hese three types of stores are serving different segment of target maret and adding a new value in customer satisfaction.
(rice Bata use @rice+Ouality eadership approach. !hey set the price based on value. $n some country they target high uality niche and in some country price sensitive segment. Everywhere they set the price based on value they delivered.
Bata follow geocentric pricing techniues. #ccording to the demographic features the local pricing for Bata shoes for men, women and children is given bellowJ
#ategory Men )ress Men "u$$er &o$en )ress &o$en "u$$er 7thletic Footwear #hildren footwear "anda>"andals
Table, (ricing of Bata "hoes Highest
/owest
(ro$otion, Bata has put less effort in promoting their products. !hey thin the ( retail outlet throughout the country helps Bata to do integral brand mareting. Hther than that they are the official clothing sponsor of Bangladesh Cricet team. =owever Bangladesh, Bata has done many promotional activities lieJ •
!>C
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Electronic " @rint 7edia.
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Fashion show and several contest
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Social 7edia lie Face boo , !witter etc
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5eb based E+flyer , E+mail
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Banners, Show cards , G+ banners ,
#mong all those promotional activities they have emphasized on outdoor advertising in Bangladesh.
4.! %?"?7%#H M?#H7;"M 4.1 ;ntroduction Footwear $ndustry is one of the promising sectors in Bangladesh. =owever, the country has already been e/porting finished leather and different inds of leather products to the overseas marets. !hese products also en-oyed considerable demand because of their high uality. !he main reason for this was the natural advantage of leather that Bangladesh produces. ecently, a new opportunity has opened up to further diversify the range of Bangladesh
4.2 Bacground of the "tudy Bata Shoe Company is the maret leader in the footwear industry since its operation in Bangladesh. !he name Bata achieved such a position in the customers< mind that whenever they heard the name of Bata, a footwear with high uality comes into their mind. Bata has been serving its customers with wide assortments of products for about five decades and doing it successfully. $t is very difficult to identify the customers< class of Bata Shoe Company. Bata touches almost every social class possible. Bata meets the footwear demands of the higher class and lower class simultaneously. =owever to stay closer to the customers Bata shoe company undertaes an assessment of the customers at a regular interval. Bata desires to fulfill the ever changing customer
satisfaction with Bata products and stores. !his study will try to compare Bata with other competitors in footwear industry. $t will help to get the nowledge of customers< overall shopping e/perience at Bata shoe stores.
4.3 rigin of the %eport Customer satisfaction analysis evaluates customers< attitude and perception towards product of a company. Bata Shoe Company, the largest footwear manufacturer and mareter in Bangladesh conducts an assessment of customers< satisfaction in a regular interval. !he purpose of this study is to measure the satisfaction level of the customers of the company. 1ue to the entrance of new competitors, this assessment program has become an important tool to now the maret condition, customer
4.4 Manage$ent (roble$ Satisfying customers are the only way to stay competitive in today
4.5 %esearch (roble$ !o stay closer to the customers Bata Shoe Company 6B19 td undertaes an assessment of the customers at a regular interval. Bata desires to fulfill the ever changing customer
!o find out the maret prospect or potential of Bata Shoe Company 6Bangladesh9 td.
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!o determine the customer satisfaction level of Bata Shoe
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!o identify the problem and give necessary recommendation to ensure the customer satisfaction in order to retain e/isting customer and to attract new customer.
4.6 (roble$ state$ents !o survive in an ever growing industry, it is very important for any company to now its customers level of satisfaction to the products and service provided by the company. !he
company can tae immediate action if customers needs identify clearly. !hough Bata Shoe Company has been running successfully over the years, as a member of an ever growing footwear industry, it also has to understand the customers< mind to tae corrective measures to improve the satisfaction level toward Bata shoe stores and Bata products. !o stay at top in this competitive maret, continually shifting customer
4.8 %esearch b@ecti*es !he broad ob-ective of the research is to assess the Customer Satisfaction of footwear $ndustry in Bangladesh focusing on Bata Shoe Company 6Bangladesh9 td. !his has been broen into following specific ob-ectivesJ 4.8.1 "pecific b@ecti*e •
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!o e/amine the current state of Bata Shoe Company 6Bangladesh9 ltd in the maret. !o analyze the current state of Bata shoe company 6B19 td and Bata Brands in customers< mind 6!H79.
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!o analyze the impact of Convenient Store ocation in customers< mind.
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!o analyze the impact of Ouality of shoes in customers< mind.
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!o analyze the impact of Comfort of shoes in customers< mind.
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!o analyze the impact of nowledge of the staff in customers< mind.
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!o analyze the impact of Fashionable style offered by the store in customers< mind.
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!o analyze the impact of Brands of shoe offered by the store in customers< mind
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!o analyze the impact of Selection of colors, style and sizes of shoes and handbags in customers< mind.
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!o analyze the impact of #dvertising in customers< mind
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!o analyze the impact of ayout and design of store in customers< mind
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!o identify customer satisfaction level of Bata and compare Bata with other store.
4.A "cope !o achieve the ob-ective it is needed to collect data from customers within the country. But for time, cost, and other limitations only the 1haa city and is surroundings are considered for
collecting data. For achieving the ob-ectives, the study will be focused on the uality, price, comfort ability, and other criteria of Bata shoes as well as the competitive position with #pe/, 4ennys, Bay and other competitors. 5hile doing so it will also identify the limitations and the weanesses of the issue. !he researcher will be focusing on the customer satisfaction level for Bata Shoe Company 6to what e/tent they are satisfied9 concentrating 1haa city.
4. /i$itations #deuate efforts have been taen to accomplish the research according to the ob-ectives. But as the research is both time and cost consuming therefore it was not possible to cover more additional areas, which would obviously give better result. •
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!he type of the study reuired a detail interview of consumer at maret place. !hereby a tremendous difficulty was faced in getting access to them as they are very busy. 7any times the respondents were found after answering few uestions left the interview, which resulted in discontinuity in interview and the wastage of time and effort. #lso, the interview was conducted only on the footwear customers of 1haa city for the time limits of internship periods. !he respondents< lac of understanding of the purpose of the study was a ma-or limitation when conducting the uestionnaire survey. $t had to e/plain the nature of the study and the purpose of a number of uestions several times to a number of customers.
$n spite of prior sincerity, some mistaes can be occurred. !he responsibilities are admitted for those inadvertent mistaes, if there will any. #lso adeuate efforts have been taen to accomplish the pro-ect according to the ob-ectives.
4.1! Benefits of the "tudy !o survive in an ever growing industry, it is very important for any company to now its customers level of satisfaction to the products and service provided by the company. !his research will facilitate Bata Shoe Company to now the present maret situation and what customers want from company. $t will provide information about customer perception about Bata
5.! /iterature %e*iew #usto$er "atisfaction QEveryone nows what satisfaction is, until ased to give a definition. !hen, it seems, nobody nows.R !his uote from ichard . Hliver 6%'??9, respected e/pert and long time writer and researcher on the topic of customer satisfaction, e/presses the challenge of defining this most basic of customer concept. Building from previous definitions, Hliver offers his own formal definitionJ Satisfaction is the consumer
!he word satisfaction first appeared in English during the thirteenth century. !he word satisfaction itself is derived from the atin satis 6meaning enough9 and the atin ending + faction 6from the atin facere + to domae9. Early usage centered on satisfaction being some sort of release from wrong doing. ater citing of the word emphasis satisfaction as a Qrelease from uncertaintyR 6!he H/ford ibrary of 5ords and @hrases, %''29. 7odern usage of the word has tended to be much broader, and satisfaction is clearly related to other words such as satisfactory 6adeuate9, satisfy 6mae pleased or contented9 and satiation 6enough9. !he difficulty faced when trying to define any word is that the meaning often depends on the conte/t in which the word is used. $n a mareting conte/t, satisfaction is used to have a more QspecificR meaning. $t appears that there are two basic approaches adopted in attempting to define the concept of customer satisfaction. Satisfaction can be viewed as an outcome of a consumption activity or e/perienceI however, it is also represented as a process. Currently, the most widely adopted description of customer satisfaction is that of a processI an evaluation between what was received and what was e/pected 6Hliver, %'??, %'&%I Hlson and 1over, %'?'I !se and 5ilton, %'&&9. By looing at satisfaction as a process, these definitions concentrate on the antecedents to satisfaction rather than satisfaction itself. Conseuently, much research effort has been directed at understanding the cognitive processes involved in satisfaction evaluations. !his strand of theory appears to have origins in discrepancy theory 6@orter, %'A%9 and a number of authors have, over the years, used some form of comparison to model satisfaction. Early contributions include Contrast !heory 6Cardozo, %'A:I =oward and Sheth, %'A'9, which supposed that consumers would e/aggerate any contrasts between e/pectations and product evaluations. !his was developed into assimilation+contrast theory 6#nderson, %'?29. 7any studies support the occurrence of assimilation 6Hlshavsy and 7iller, %'?I Hlson and 1over, %'?'9. Customer satisfaction, a business term, is a measure of how products and services supplied by a company meets or surpass customer e/pectation. $t is seen as a ey performance indicator within business and is part of the four perspectives of a Balanced Scorecard. $n a competitive maretplace where businesses compete for customers, customer satisfaction is seen as a ey differentiator and increasingly has become a ey element of business strategy. !here is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms. # further point concerns e/pectations that are defined differently in the satisfaction and uality literature. $n the satisfaction literature Qe/pectations reflect anticipated performanceR 6Churchill and Suprenant, %'&, p. ('9 made by the customer about the levels of performance during a transaction. Hn the other hand, in the service uality literature, e/pectations are conceptualized as a normative standard of future wants 6Boulding, aira, Staelin " Zeithami, %''29. !hese normative or ideal standards represent enduring wants and needs that remain unaffected by the full range of mareting and competitive factors. ;ormative e/pectations are therefore more stable and can be thought of as representing the service the maret oriented provider must constantly strive to offer 6Ze$thaml, Berry " @arasurama, %''29. #ssuming that the customer is capable of evaluating the service performance, the result is compared to e/pectation prior to purchase or consumption 6Hliver, %'&)9. $n the past, corporation did not pay much attention to customer satisfaction but were focused more on attracting new customers to e/pand their maret share. ;ow, due to lower sales resulting from product maturity, corporations are turning around to stabilizing their e/isting customers to ensure
their maret share 61habolar " !horpe, %''(9. !hus the concept of customer satisfaction is under further scrutiny. For the current study, the definition put forward by Hliver will be the construct, as it is the most appropriate for the selected study. Q$t
Because satisfaction is basically a psychological state, care should be taen in the effort of uantitative measurement, although a large uantity of research in this area has recently been developed. 5or done by Berry, Brodeur between %')) and %''& defined ten TOuality >alues< which influence satisfaction behavior, further e/panded by Berry in )) and now as the ten domains of satisfaction. !hese ten domains of satisfaction includeJ
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Ouality
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>alue
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!imeliness
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Efficiency
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Ease of #ccess
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Environment
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$nter+departmental
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!eamwor
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Front line Service Behaviors and
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Commitment to the Customer and $nnovation.
Customer satisfaction survey is a widely used method in footwear industry 6Cohen et al. ))&, ombarts et al. ))'9. Customer satisfaction measurement is fundamental to effective delivery of services 6#tila and 7ie, ))'9. Bata Shoe Company conducts this assessment pacage internationally to ensure the better service to the customers. Basically this assessment pacage has been conducting in Bangladesh for the last few years using the same process which is conducted internationally. Customer assessment pacage measures the customer satisfaction on Bata products. !he end+user of Bata products are mainly the respondents of this research.
6.! %esearch Methodology A.% !ypes of esearch !his research is a uantitative e/ploratory research, as it is an initial research conducted to clarify and define the nature of a problem. $t is ualitative as the results of this research focuses on words and observations, instead of numbers and mathematical analysis. #t first an e/ploratory research has been conducted to define the nature of the problem. !hen conclusive research through ualitative methods has been carried out.
A. Basic esearch 7ethod !his section has described the basic research plan of the study. $t has specified all the procedure necessary to solve the research uestions and hypothesis. !he basic research method in this research will be survey method with a formatted online uestionnaire provided from Bata egional =ead office. #n observation method will not produce e/pected result. #s e/periment study is costly so it will not be undertaen.
A.2 Conceptual Framewor Customer assessment pacage is conducted by Bata considering some factors relevant to customer satisfaction. !hese are considered as independent variables whereas customer satisfaction is dependent variable. !he independent variables are product price, product uality, product design, store design, salesmen behavior, advertisement, competitors mareting policy, seasonal variation, product availability, brand loyalty etc. !hese factors influence the satisfaction level of customers at Bata and Bata products. From the comparison of different attributes or features the customer satisfaction towards Bata will be assessed.
A.( 7odel 1evelopment raphical Model, ;ndependent 0ariables
)ependent 0ariable
A.: !ype of data !his research will not be focusing on any secondary data, as no such preview research has been conducted in conte/t of Customer Satisfaction #ssessment of Bata Shoe Company 6Bangladesh9 td. !his research will wor with only primary data based on e/it interview.
A.A 1ata Collection @rocedure 1ata is collected through survey method. For the survey method, personal interview was conducted. # uestionnaire is ept in hand of the interviewer to aid the interview process. # personal interview is a form of direct communication in which an interviewer ass respondents uestions in a face+to+face situation. >erbal e/planations were provided to the respondents who faced any problems answering the uestionnaires. $nformal interviews were also held with Customers. #fter collecting primary data we uploaded the real time data into the customer satisfaction assessment software to generate the analysis.
A.? Sampling @lan for the esearch Sampling is an important component for a research design. $t is the process of using a small number of parts of a larger population to mae conclusions about the total population. For this research the following steps in the sampling design process was followedJ • • • • •
!arget population Sampling frame Sampling !echniue Sample size and E/ecution
6.8.1 Target (opulation !he target population of this research is Footwear customers of Bata. @opulation is a collection of all possible individuals, ob-ects, or measurements of interest. $t is a set of entities concerning which statistical inferences are to be drawn, often based on a random sampling taen from the population. #ll consumers in the country are the concern population. But due to time and resource constraints the consumers in 1haa city are considered as the population. 6.8.2 "a$pling Fra$e !here is no such sample frame is available for this research. Bata customers of all ages and se/es were considered. 6.8.3 "a$pling Method !he study consists of footwear customers of 1haa city and its surroundings. Simple random sampling techniue was used for sampling. 6.8.4 "a$ple "ie !he sample size of a statistical sample is the number of observations that constitute it. $t is typically denoted by n, a positive integer 6natural number9. !ypically, all else being eual, a larger sample size leads to increased precision in estimates of various properties of the population. =ere in this research the sample size is n U A' but for some limitations 6time, recourses, etc.9 and convenience, total number of A' respondents< data was collected. !he survey was conducted from %% stores of Bata outlets in 1haa city and its surroundings. 6.8.5 ?9ecutions Ouestionnaire survey according to sampling plan through personal interviews with randomly selected sampling units was conducted. =owever verbal e/planations were provided to the respondents who faced any problems answering some uestions from the uestionnaires. ater 1ata were uploaded into the customer satisfaction assessment software through real time data uploading. !his was connected through real time online connection with regional head office of Bata Shoe Hrganization. 6.8.6 )ata 7nalysis and ;nterpretation #fter collection all the primary data, those are analyzed following waysJ Statistical #nalysisJ !he primary data from the uestionnaire is placed in the customer assessment software through real time data inputting. !he analysis was produced automatically through Chi Suare test, Correlation analysis, Freuency distribution, pie chart, bar graph are used to analyze data. #ll this analysis is done through the use of S@SS for 5indows software. !hese analysis is done through the customer satisfaction assessment software from the regional headuarter based on the e/it interview. !he software is connected with the regional head office through real time data input from the different city and family stores in Bangladesh.
8.! 7nalysis and )ata interpretation based on ?9it ;nter*iew "ur*ey /ocation of the sur*eyed stores, !he research was conducted at several stores of Bata shoe company 6Bangladesh9 td. Stores are including ( city stores and ? family stores. !he following is the list of storesJ
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0ulshan City Store. Farmgate Family Store. 7irpur Family Store 6Beside prince plaza9. Bata Factory 0ate Family Store. apa plaza city store. Balaa %, Family Store, ;ew maret. AB, B 0ulisthan Family Store. Shawrapara , Family Store . 8ttara south, City Store.
8.1 ender of the respondents,
!he sample size was A' out of the sample size male are %(( and female are %: .this signifies that out of total sample size :2V respondent is male and (?V respondent are female . 8.2 Maret positioning of Bata "hoe #o$pany -Bangladesh /td,
!he maret positioning of Bata shoe company 6B19 td. is very much higher according the graphical findings of the research. !he sample size was A' between the sample size : customers chose Bata as established competitor and the rest (( customers choose Bata as a maret leader. So we can conclude customers consider Bata Shoe Company 6B19 as a maret leader in the country. 8.3 FreCuency of store refurbish$ent,
!he freuency of store refurbishment is to ensure the level of activity of renovation department of Bata Shoe Company 6B19 ltd. Because renovation contribute to ensure the customer satisfaction level. $f the store is renovated freuently it improves the stores appearance to customers and customers are attracted to visit and buy the shoes. !his pie chart shows that almost ''V stores are refurbished within ) to years and the rest %V stores are refurbished within to 2 years. !his means almost %)) V stores are refurbished every year. So it ensures the customer satisfaction because customers always want upgration as well as modern designs and outloo. So it means Bata shoe company 6B19 td is concerned about the freuent renovation of the stores.
8.4 Top of Mind 7wareness -TM7 %elated Duestion
5hen you thin of footwear store chains, which are the first three that come to mindW
!he bar graph have shown the top of mind awareness in a customers mind when a customer thin of a footwear store. Bata is considered as the % preference by the customer because out of &%V customer out of %))V respondent 6%&? customers out of 2)9 choose Bata as !H7 %, %2V customer out of the %))V respondent choose Bata as !H7 and (V customer choose Bata as !H7 2.so it means that customers are intended to consider Bata as the maret leader as the higher percentage of customer mention as !H7 %. st
#pe/ is considered as the preference by the respondents<%&V customer consider ape/ as !H7 % 6%A customers out of ' customers9 , ?AV customer consider ape/ as !H7 6 ?) customers nd
out of ' customers 9, ?V customer mentioned ape/ as !H7 2 6 A customers out of ' customers 9. Bay Emporium is considered as the 2 preference by the respondents %%V customer consider Bay as !H7 , ?) V customer consider Bay as !H7 2. !here is )V customers< response regarding Bay that it is not in !H7 % position. rd
4ennys is considered as the one of the upcoming footwear retail brand in the country. %)V customer consider -ennys as !H7 %, AV customer consider -ennys as !H7 , A2V customer consider -ennys as !H7 2 . #long with these there is also a high percentage of customer willingness to buy from outside maret as well as from unorganized maret lie elephant road, polwel maret, various local marets in different areas and other foreign imported merchandise etc. 8.5 How did you hear about Bata shoe co$pany -B) /td,
Customer has come to now about Bata shoe company 6B19 td through various ways. Bata is an international brand and it has its own strategies to draw the attention of its customers. !his bar graph shows that %V customer mention that they hear about Bata brand through its advertising, 2(.AV customer mention that they now about Bata from word of mouth lie peer influence, A(V customer mention that they now about Bata from their own e/perience .so we can conclude that higher percentage of customer use Bata footwear and their e/perience is positive about Bata and they are the loyal customer of Bata shoe company 6B19 tb. !his is a good sign of customer satisfaction level also. 8.6 How $any ti$es custo$ers *isited the footwear stores in the last 6 $onths,
=ow many times customer visited the footwear retail chain stores means that customers visit stores freuently on the basis of willingness to buy and customers< perception and liing towards the store of a particular brand. !his bar graph shows that there is a higher trend of customers< to visit Bata stores rather than other competitors<. Customer visit Bata stores more freuently. !hat is why we can conclude that customers are satisfied with the stores of Bata Shoe Company 6B19 ltd.
8.8 How $any pairs of shoes bought by a custo$er in the past 6 $onths,
=ow many shoes are bought by a customer in the last A months signifies that customers< buying pattern as well as their buying behavior in the last si/ months to assume the customers freuency to buy. #ccording to this pie chart &.2V customer did not buy any pair of shoe, 22.:V customer bought % pair of shoe, A.:V customer bought pairs of shoe in the last si/ months, %.V customer bought 2 pairs of shoe in the last si/ months, A.:V customer bought ( pairs of shoe in the last si/ months , (.2V customer bought : pairs of shoes in the last si/ months , %.?V customer bought A pairs of shoe in the last si/ months ,%.?V customer bought ? pairs of shoe in the last si/ months ,% V customer bought around & to ' pairs of shoe in the last si/ months , 2.:V customer bought %) pairs of shoe in the last si/ months . So we can conclude that the higher percentage in the pie chart meaning that customers< buying pattern is positive and better than the competitors.
8.A How $uch custo$ers want to spend on an a*erage,
!his bar graph shows the how much customer is willing to buy on an average. !his is very important to now the level of customers< intention to spend to buy a pair of shoe. !he sample size is A' out of the sample size %) respondents mention they want to spend B1! :)) on an average for a pair of shoe, %& respondents mention that they want to spend B1! A)) to ?)) on an average for a pair of shoe, respondents mention they want to spend B1! &)) on an average, ( respondents mention they want to spend B1! %))) on an average to buy a pair of shoe, 2' respondents mention they can spend B1! %)) for a pair of shoe , 2A respondents mention that they want to spend B1! %()) to buy a pair of shoe , ' respondents mention that they want to spend B1! %A)) on an average for a pair of shoe , ( respondents mention that they are willing
to buy B1! %&)) for a pair of shoe , %) respondents mention that they are willing to spend B1! 2))) on an average for a pair of shoe
8. Factors to decide which footwear brand to buy,
Factors to decide which footwear to buy because this is one of the most important factors from where customer should buy. !his bar graph determines the factors which a customer want to -udge before buying the footwear from any retail footwear store. #ccording to this bar graph it is measured by five point scale where % is poor , is fair , 2 is average, ( is good , : is e/cellent . So long lastingness of footwear, comfort of footwear, value for money, trendy and fashionable
design and international footwear brand these variables are above on the level ( scales so all of the variables have passed the level of goodness to e/cellence.
8.1! Brands custo$ers purchase freCuently,
!his bar graph signifies which Bata brand is sold at a higher level . which bata brand is the most desired brands by the customer .!his bar graph shows that customer buy bata brand as they first prefer . !he higher the bar means the high range of sales . !hen ;orth star , 7arie claire, Bata comfit, @ower, @atapata ,B+first, #mbassador , Bata and more ,Sanda , !oughees , Baby
Bubbles etc are also the desired selling brands to the customers .so we can conclude that Bata shoe company 6B19 td should monitor a close concentration to sustain the growth of the brands that are operated by Bata Shoe company 6B19 td. 8.11 (erfor$ance of a Bata store ,
@erformance of a bata store means the layout , design , outloo , in store display, store decoration, salemen helpfulness, behabior of the store manager, location of the store , abailability of merchandise , abailability of premium brands etc .in this char all the variabls are measured by a : point scale where % is poor and : is e/cellent . above in the graph all most all the variables are within the range 2 to ( that means average to good . location covenience , available merchandise , attractivness of window display these are higher than other variabls . so we can conclude bata store is maintaing the customer satisfaction through monitoring the important factors . =ere all most all the variables are within the average to good 62 means average, ( means good9. So we can conclude that Bata should improve the performance of store by improving the significant services which are the contributing elements to improve the store performance to stay at top in the footwear industry
#o$parison of perfor$ance between Bata store and 7pe9 store 8.12 (erfor$ance of an ape9 store,
@erformance of an ape/ store symbolizes that performance is measured by the various variables lie attractiveness of window display , pleasant shopping environment , in store promotion , low price offered , range of brands, in store assistance , location convenience etc .@erformance of an store is the most important factor which plays the vital role to determine the customer satisfaction by the competitors of Bata shoe company 6B19 td. this Bar graph shows the important factors are maintained by the competitors that can be improved by Bata to stay at top
in the industry competition . =ere all most all the variables are within the of average to good 62 means average, ( means good9. So we can conclude that ape/ is improving the performance of it stores to overcome other competitors in the footwear industry. 8.13 (erception about Bata that co$es to $ind,
!his bar graph e/plains the customers< perception regarding Bata shoe company 6B19 td. !his graph e/plains the percentage of the trend which is measured by the customers< survey held at the store. Hut of the %))V sample size 'V customer mention Bata is modern, (&V customer mention Bata is liable, and %AV customer mention Bata is honest and fair, ()V customer
mention Bata is a leader, 2'V customer mention Bata is innovative, 2V customer mention Bata is a part of their life, 2.V customer mention Bata is ethical, %:V customer mention Bata is a brand which recommend to others, (V customer thin Bata has a personal touch. So we can conclude that Bata shoe company 6B19 td is liable, is modern, is a leader , is innovative etc with higher bar in the graph . So it means Bata emphasizes on customer satisfaction to ensure delivering the best footwear uality. 8.14 (ossibility to *isit Bata store in future,
!his pie chart e/plains the customer
are moderately liely to visit Bata store in future, :%V customer mention that they are very liely to come again in future at Bata stores, (V customer mention they are e/tremely liely to visit Bata store in the future. So we can conclude ?:V customer will be visiting Bata store on a freuent basis. A.! F;);" F TH? 77/E";" ##/+"; 7) %?##M?)7T;"
A.1Findings •
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!he name Bata achieved such a position in the customers< mind that whenever they heard the name of Bata, a footwear with high uality comes into their mind. From the survey it is found that when people are ased about Bata they refer to the uality of shoes those they are using from childhood. 5hy Bata is the first brand that comes to potential customers< minds when they thin of purchasing footwear is because of Bata has a huge brand presence in Bangladesh due to its long time operations and its uality is seemed to be reliable. !hese combine to form the reason. !his high !H7# level helps to maintain customer loyalty as the customers prefer to fall bac on the brand they now. >alue for @rice offered by the store is an important factors to the respondents those was surveyed. >alue for money offered by the store has impact on Customer satisfaction. Based on the uality of Bata most of the people said Bata
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Selection of colors, styles and sizes is an important factors to the respondents those were surveyed. espondent were more or less agreed with the fact that Selection of colors, styles and sizes has impact on customer satisfaction. From the analysis it has found that Selection of colors, style and sizes and Customer satisfaction are positively related. Brands of Shoes offered by the Store is an important factors to the respondents those were surveyed. espondent were more or less agreed with the fact that availability of Brand shoes is important to them and has a positive impact on customer satisfaction. Bata serves to the customers with rich collection of brand shoes. #dvertising is a communication tool used to promote the product to the customersI it has a positive impact on customer satisfaction. Bata advertises its products through different media lie electronic " print media, television commercials, new arrivals, fashion shows, social networing faceboo, twitter etc. Bata Bangladesh is maintaining modern strategies to ensure mass mareting as well as huge brand awareness. Bata shoe company 6B19 td is increasing its number of seasonal !>C. ayout and design of store is an important factors to the respondents those were surveyed. ayout and design of store has impact on customer satisfaction. Bata renovation department wors to design the stores layout. Customers are satisfied with Bata stores< layout and design. !hat is admirable. Bata displays posters, pictures, and pop in the retail outlets. Finally, from the analysis it has found that Bata provides superior value to the customers in uality of shoes store
A.2 #onclusion =ere the study tried to find out customers satisfaction of Bata store and other shopping stores. !here are some emerging shoe stores in Bangladesh which have already gained customers loyalty in footwear products. !he study compared the Bata shoe company with other emerging shoe brands such as #pe/, Bay Emporium, 4ennys, @egasas, and many unorganized shoe stores lie at Elephant road. Bata Shoe Company compared with these other shoe stores on some factors. .!he finding of the study is that Bata Shoe Company is in a better position in the maret place than the competitor e/cept serving customers up to date stylish and trendy shoes. Bata has loyal customers group who buy Bata only for its uality. From the research it can be definitely surmised that the hypotheses were largely accurate. !he results from the uestionnaire survey and the statistical analysis both support the theory that the consumer base of Bata is composed of customers who are more or less satisfied. =owever, Bata does need some modifications in its mareting tactics regarding attracting new customers and service offerings to the older ones. Bata should not tae the brand loyalty for granted and should tae specific steps to ensure that they can hold on to the lucrative customer base they have while focusing on a few informational tactics to inform potential customers. Bata is in a secure position right now regarding customer
