Brand Analysis of Apex Footwear Limited i PDF

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Brand Analysis of Apex Footwear Limited i Course Name: Brand Management Submitted To Khaled Mahmud Assistant Professor Institute of Business Administration University of Dhaka Submitted By MBA 52-Day Institute of Business Administration University of Dhaka No. Name Roll No. Batch 01. Saliur Rahman 0...

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Brand Analysis of Apex Footwear Limited

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Course Name: Brand Management

Submitted To Khaled Mahmud Assistant Professor Institute of Business Administration University of Dhaka Submitted By MBA 52-Day Institute of Business Administration University of Dhaka

No.

Name

Roll No.

Batch

01.

Saliur Rahman

08

MBA 52D

02.

A K M R Mobarak

10

MBA 52D

03.

Mohammad Abul Rahat Chowdhury

44

MBA 52D

04.

Ridwan Al-Mahmud

58

MBA 52D

Date of Submission: May 15, 2016

May 15, 2016 ii

Khaled Mahmud Assistant Professor Institute of Business Administration University of Dhaka

Dear Sir, Subject: Submission of term paper on the Brand Analysis of Apex Footwear Limited This is to inform you that as a requirement for the partial fulfilment of the course “Brand Management”, we have analyzed the Knitwear industry of Bangladesh with a report titled “Brand Analysis of Apex Footwear Limited”.

We have given our best efforts in following your instructions while preparing this report and have collected what we believe to be the most pertinent data in order to make it as informative and as precise as possible. We are thankful for the opportunity provided to us to and hope you will look kindly on any errors that may have occurred. Sincerely

Mohammad Abul Rahat Chowdhury

Saliur Rahman (ZR-08, Batch 52D)

(ZR-44, Batch 52D)

A K M R Mobarak

Ridwan Al-Mahmud

(ZR-10, Batch 52D)

(ZR-58, Batch 52D)

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Table of Contents Table of Contents....................................................................................................................................i 1. Introduction.......................................................................................................................................1 1.1 Scope...........................................................................................................................................1 1.2 Methodology...............................................................................................................................2 1.2.1 Formulation of Research Objective.......................................................................................2 1.2.2 Data Collection......................................................................................................................2 1.2.3 Data Analysis.........................................................................................................................3 1.3 Limitation.....................................................................................................................................4 2. Industry Overview..............................................................................................................................5 2.1 Growth rate.................................................................................................................................5 3. Apex Footwear Limited - The Company.............................................................................................7 3.1 Vision...........................................................................................................................................7 3.2 Mission.........................................................................................................................................7 3.3 Values..........................................................................................................................................7 4. Apex Footwear Limited – The Brand..................................................................................................8 4.1 Marketing Activities.....................................................................................................................8 4.2 Brand Mantra...............................................................................................................................9 4.3 Brand Perception.........................................................................................................................9 4.3.1 Consumer Perception...........................................................................................................9 4.4 Customer Based Brand Equity....................................................................................................10 4. Competition Landscape...................................................................................................................12 4.1 Current Situation.......................................................................................................................12 4.1.1 Export..................................................................................................................................12 4.1.2 Local Market.......................................................................................................................12 4.2 Competitors...............................................................................................................................13 4.2.1 Bata.....................................................................................................................................13 4.2.2 Jennys.................................................................................................................................13 4.2.3 Bay Emporium.....................................................................................................................13 4.2.4 Fortuna Bangladesh............................................................................................................14 I

4.2.5 Atlas Footwear....................................................................................................................14 4.2.6 Leatherex Footwear............................................................................................................14 4.3 Porter’s 5 Forces analysis...........................................................................................................14 4.3.1 Rivalry among Existing Firms...............................................................................................14 4.3.2 Threat of New Entrants.......................................................................................................15 4.3.3 Threat of Substitute Product...............................................................................................15 4.3.4 Bargaining Power of The Buyers.........................................................................................15 4.3.5 Bargaining Power of The Suppliers.....................................................................................15 4.3.6 Threat of Complementary Product.....................................................................................15 5. GAP Analysis....................................................................................................................................16 5.1 Gap analysis...............................................................................................................................16 5.1.1 Current Brand Equity..........................................................................................................16 5.1.2 Projected Brand Equity.......................................................................................................16 5.2 Strategy Implentation................................................................................................................16 5.2.1 Trimming Down on Unreasonable Promotion: ..................................................................16 5.2.2 Withdrawal of Low Priced Products....................................................................................16 5.2.3 Change in Marketing Policies..............................................................................................16 6. Conclusion.......................................................................................................................................17 References...........................................................................................................................................18 Appendix A..........................................................................................................................................19

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1. INTRODUCTION With the development of financial markets, the potential for new businesses and the arrival of entrepreneurs are increasing. Economic growth has seen a booming landscape in the context of Bangladesh. Bangladesh has developed its position from lower income country to lower middle income country. This advancement has been possible with the help of some growing sectors of Bangladesh. Footwear industry is one of those booming sectors of Bangladesh. Economic growth, nowadays, largely depends on the entry of innovative business projects. The country‘s exports of leather products and footwear have been increasing year by year, and the sector could become the second largest foreign currency earner—after readymade garments (RMG)—if Bangladesh is able to attract investors by providing them land and capital at affordable rates. According to the Export Promotion Bureau (EPB), in the first nine months of the fiscal year 2014–15, the country posted a 23.40 per cent growth in footwear exports, compared to the same period a year ago. Bangladesh earned USD 354.22 million from exports of leather footwear in the July–March period in the fiscal year. (CPD, 2015) Footwear is the basis of one of the oldest industries in Bangladesh and plays a significant role in the national economy with a good reputation worldwide. This is an agro-based by-product industry with locally available indigenous raw materials having a potential for export development and sustained growth over the coming years. Bangladeshi shoes are widely known around the world for its high quality of fine gain, uniform fiber structure, smooth feel and natural texture. Real progress in terms of product development with respect to crust and finished leather began in the 1990s. However, in the report published by CPD in 2015, it says that the rising labor costs in China have made big retailers look to countries like Vietnam, the Philippines, Bangladesh and India. Leather sector businessmen say Bangladesh is an attractive destination for leather sector entrepreneurs, as China is facing problems in the sector. When asked what the government should do at this moment to attract the producers leaving China to come to Bangladesh, Syed Nasim Manzur, also the managing director of Apex Footwear Ltd and president of Metropolitan Chamber of Commerce and Industries (MCCI), said the overall cost of business has to be reduced to attract foreign investors. (CPD, 2015) The good part of being of this economic growth is that foreign entrepreneurs are interested in Bangladesh‘s footwear industry. It has been made possible the availability of raw hide, low labor costs, the very young workforce, and the large market. (CPD, 2015)

1.1 SCOPE The scope of this paper includes an analysis of the branding activities of Apex Footwear Limited, studying the company as well as particularly identifying the position of the company and where the company is headed towards. The analysis performed in this report will help both industry veterans and new entrants to know the various marketing activities of Apex footwear Limited as well as consumer perception about the company. Apex Footwear was chosen to better facilitate data collection as we personally know the concerned person; marketing head of Apex Footwear.

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1.2 METHODOLOGY Methodology refers to the methods and principles used in an activity. The procedure that will be followed for this paper is given below –

1.2.1 FORMULATION OF RESEARCH OBJECTIVE Several factors were considered while formulating the research objectives –  Ensure that a detailed picture of the branding of Apex Footwear Limited is presented through the paper  Explore the branding activities and current position of Apex Footwear Limited in addition to consumer perception regarding the company

1.2.2 DATA COLLECTION 1.2.2.1 EXPLORATORY RESEARCH The work on this paper will primarily be based on exploratory research. Exploratory research is defined as the initial research into a hypothetical or theoretical idea. This is where a researcher has an idea or has observed something and seeks to understand more about it. An exploratory research project is an attempt to lay the groundwork that will lead to future studies, or to determine if what is being observed might be explained by a currently existing theory. Most often, exploratory research lays the initial groundwork for future research. Exploratory research can come in two big forms: either a new topic or a new angle. A new topic is often unexpected and startling in its findings. New angles can come from new ways of looking at things, either from a theoretical perspective or a new way of measuring something. For instance, computers have allowed large populations to be looked at. Old experiments can now involve thousands of people from around the globe instead of a few people from the local train station. 

Data will be collected from managers and customers about pricing, performance, competition etc.



Data will be collected from managers and customers regarding their perception of the brand

The primary and secondary data gathered for this paper will be gathered through the use of exploratory research techniques. PRIMARY DATA

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Primary data is data observed or collected directly from first-hand experience, specifically for the purpose of the research project at hand. Primary data for this paper will be collected in two ways – 1. Personal interview 2. Phone interview 3. Questionnaire Most of the data will be collected through personal interviews. In-depth interviews will be conducted with the employees and executives of the organization. SECONDARY DATA

Secondary data is data that has previously been collected (primary data) and is then utilized by a person other than the one who collected the data. Sources of secondary data that will be used in this paper are: 1. Company website 2. Company profiles 3. Company publications and annual reports 1.2.2.2 DESCRIPTIVE RESEARCH Once the groundwork is established, the newly explored field needs more information. The next step is Descriptive research, defined as attempts to explore and explain while providing additional information about a topic. This is where research is trying to describe what is happening in more detail, filling in the missing parts and expanding our understanding. This is also where as much information is collected as possible instead of making guesses or elaborate models to predict the future - the 'what' and 'how,' rather than the 'why'.

1.2.3 DATA ANALYSIS This technique will be qualitative and quantitative data analysis techniques. The data generated from the questionnaire would be input in a statistical tools and computer software for analyzing and reporting such as Microsoft Excel, Microsoft word. We would then try to identify trends in the data, if any, and interpret the findings of the research in the main report. 1.2.3.1 QUALITATIVE ANALYSIS Qualitative analysis means looking at the intangibles. The factors about a company that are not purely numbers driven can be just as important as crunching the numbers. Qualitative analysis can be far more subjective and really depends on the company that is being looked at, and the purpose of the analysis overall. Qualitative research is about finding out not just what people think but why they think it. It’s about getting people to talk about their opinions so you can understand their motivations and feelings. Face-to-face interviews and group discussions are the best way to get this kind of indepth feedback. However, we mostly used social media for conducting surveys and taking people’s response. Qualitative research helps to find

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What customers or prospects think and feel about r product or service

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How customers choose between different products or suppliers; what motivates them

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How branding, design and packaging influence customers and in what way

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What sort of marketing messages have the most impact and what turns customers off completely

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How price affects their decision-making

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Whether there is demand for a new product or service

1.2.3.2 QUANTITATIVE ANALYSIS Quantitative analysis means looking at and the actual numbers. Looking at different financial metrics and ratios is fundamental to the analysis of any company being looked at. Quantitative market research is used for estimating consumer attitudes and behaviors, market sizing, segmentation and identifying drivers for brand recall and product purchase decisions. As the name suggests, quantitative market research methods place an emphasis on the quantity of a research study as opposed to the quality. Quantitative marketing research is used to project the results of quantitative market surveys of the entire marketplace.

1.3 LIMITATION Many people give less emphasize on footwear. They often buy it when they need it. Most of them do not even pay attention to the TVC’s or other branding activities. Also, it was not easy to conduct the survey.  Can't predict consumer behavior: Consumer behavior cannot be predicted. It keeps on changing according to the time and moods of the consumers. Consumer behavior is also very complex. It is influenced by social, religious, family, economic and other factors. It is very difficult to study these factors.  Lack of financial data: Companies are very rigid about their financial information. They do not want to provide accurate budget for branding activities.  Limited branding activities: There are very few TVC’s. Also, very few people watch TVC unless it is very attractive or well made.  Shortage of secondary data: Few previous works were done exactly on this field. So, there was scarcity of secondary data.  Shortage of contemporary data: Very few secondary data were found are not up-to-date.  Lack of accurate data: Willingly or unwillingly few respondents gave inaccurate data (from my realization), but not significant.

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2. INDUSTRY OVERVIEW The Footwear Industry in Bangladesh has started since the colonial era, although its modernization took place only in the late 1980s. During the British period, there was no footwear manufacturing firm producing on a mass scale in East Bengal. However, a traditional cottage type footwear industry with limited production facilities existed in a skeleton form in the district towns during that time. Various types of footwear were imported, mainly from Calcutta. After the partition of Bengal in 1947, foot wears were imported from West Pakistan. When Bata Shoe Company established its manufacturing plant at Tongi in 1962, it was the first manufacturing plant to produce shoes on a large scale in East Pakistan. In 1967, Eastern Progressive Shoe Industries (EPSI) established its production plant. It began exporting footwear to USSR, Czechoslovakia and England. Both Bata and EPSI held major shares in the local footwear market. The footwear industry suffered a major setback during the war of liberation but was rehabilitated after independence. New footwear manufacturing units have recently been established. Among them are Apex Footwear, Excelsior Shoes, and Paragon Leather and Footwear Industries. Japan and Germany are now the biggest markets for Bangladeshi footwear but US buyers are increasingly showing interest in sourcing from Bangladesh. Bangla...