Leather Art

Developing the new products named Leather Goods in the market Leather Art Company

Course name: Business Methods and Course Code: MBA" #$%

&repared 'or
Mr( mar )aruk *Assistant &ro'essor+ )aculty o' Business and ,ocial ,cience Ahsanullah -niversity o' ,cience . /echnology

rgani!ation

&repared 0y
$( ,atish Chakma 1D( 23(2%(4%(254 *6ew+ 1D(23(2%(4$(2%# * ld+ MBA 5( Md( ,hakhawat 7ossain 1D( 23(2%(4%(22$ MBA 4( /aslima Amin 1D( $2(2$(4$(2:$ MBA %( Md( Didarul 1slam 1D( 23(2$(4$(2$2 MBA 8( ,hakhwat 7ossain 1D($2(2%(4%(22% MBA #( ,uman 9umar 9undu 1D($2(2%(4$(2;2 MBA

Date o' su0mission: August %:< %2$$

Ahsanullah -niversity o' ,cience . /echnology

L=//=>
Date: August 27, 2011

) />A6,M1//AL

To Mr( mar )aruk *Assistant &ro'essor+, Faculty of Business and Social Science, Ahsanullah University of Science Technology, Dha!a, Bangladesh" ,u0?ect: ,u0mission o' the /erm &aper #onora$le sir, %t is our great &leasure to su$'it A Ter' (a&er on Developing the new products named @Leather Goods 0y Leather Art Company: A ,tudy on the Leather Art Company in Bangladesh that you have assigned to us for the &artial re)uire'ent of our acade'ic &ur&oses" *e tried to &ut our $est effort to &resent this Ter' (a&er effectively according to 'aintain the rules" *e 'ade sincere efforts to study related 'aterials, docu'ents, o$serve and e+a'ine relevant ite's for &re&aring this Ter' (a&er" *ithin the ti'e li'it, ,e have to 'a!e this Ter' (a&er as co'&rehensive as &ossi$le" But there 'ay $e so'e 'ista!es due to various li'itations" For this reason, ,e ho&e you !indly consider any 'ista!e on our &art in &re&aring this Ter' (a&er" And should you need any further clarification regarding our Ter' (a&er, &lease call on us" Sincerely yours,

$( ,atish Chakma 1D( 23(2%(4%(254 *6ew+ 1D(23(2%(4$(2%# * ld+ MBA 5( Md( ,hakhawat 7ossain 1D( 23(2%(4%(22$ MBA 4( /aslima Amin 1D( $2(2$(4$(2:$ MBA

%( Md( Didarul 1slam 1D( 23(2$(4$(2$2 MBA 8( ,hakhwat 7ossain 1D($2(2%(4%(22% MBA #( ,uman 9umar 9undu 1D($2(2%(4$(2;2 MBA

AC96 AL=DG=M=6/

Any assign'ent./ase Study.0e&ort as this 'ust o,e credit to a 'ultitude of &eo&le" At the $eginning, ,e should ac!no,ledge the contri$utions of our course instructor, ,hose instruction has $eco'e the &art of our thin!ing &rocess" *e e+&ress our sincere gratitude and than!s to our course instructor mar )aruk, Assistant (rofessor, Faculty of Business Technology, for his $rilliant and and Social Science, Ahsanullah University of Science

e+cellence guidance and assistance to &re&are this Ter' (a&er" *e are grateful to (%/A0D Bangladesh 1td, Dha!a, Bangladesh for giving us so'e essential infor'ation" *e ,ould li!e to e+&ress our gratefulness to under ,hose !ind su&ervision ,e got our re)uired 'aterial" Finally, ,e ,ould li!e to than!s our $eloved friends, senior $rothers and sisters ,ho hel&ed us in every stage of the Ter' (a&er $y &roviding their valua$le suggestions and served as the revie,er and critics in res&ect of &re&aring this Ter' (a&er" Definitely all &raise to Allah" So, at last not the least, ,e ,ould li!e to e+&ress our gratitude to Almighty Allah for !ee&ing us 'entally and &hysically sound to co'&lete this Ter' (a&er"

=B=C-/1C= ,-MMA>D

This re&ort.ter' &a&er is $asically &re&ared for the &artial re)uire'ent of our acade'ic &ur&ose" This re&ort e'&irically focuses on the de&th analysis of the Integrated Marketing Communication planning for (roducts on the 1eather Art /o'&any in our native country Bangladesh" *e have 'ade this ter' &a&er after critically e+a'ining and thoroughly researching over it" %t consists of e+a'ining 'ar!et research, auditing situation analysis and carefully scrutini3ing the leather &roducts of 1eather Art /o'&any in the 'ar!et" *e have carefully analy3ed the different varia$les and relevant strategy for seg'enting the $everage 'ar!et of 1eather" This re&ort ,ill give a clear idea a$out their target 'ar!eting &lanning and co''unication strategy" 1eather Art /o'&any &rovides 1eather goods as solutions to i'&rove afforda$ility, co'fort and stylish" This 'ar!eting &lan de'onstrates the strategies e'&loyed to convert sales and create steady strea's of revenue" 4ur co'&any creates 1eather &roducts that give us a co'&etitive advantage" 1eather Art /o'&any &rovides $usinesses ,ith &roduction of leather &roduct that are scala$le and environ'entally friendly" *e ,ill fund our co'&any $y selling our &ro&rietary &roducts that 'anages &roduction volu'e, allocation of resources and ,ithin the first three years of $usiness, the co'&any e+&ects to $eco'e &rofita$le and e+&and After researching on this co'&any in Bangladesh ,e have found that, in levels of 'ar!eting they follo, seg'ent 'ar!eting and in seg'entation they follo, De'ogra&hic and Behavioral Seg'entation" As they have different ty&es of &roduct they follo, differentiated 'ar!eting ,ith different 'ar!eting 'i+" %n target 'ar!et selection they are follo,ing full 'ar!et coverage and targeting 'ulti&le seg'ents" 1eather Art /o'&any follo,s 5 ,ays of &ositioning 6(roduct, (rice, Distri$ution, (ro'otion and /o'&etitive Strategy7" Their effective ,ays of &ositioning hel& the' 'uch to increase their &rofit"

/ABL=
,l Content

) C 6/=6/,
&age no

C7A&/=>"1
1" %ntroduction

A'erican 9ar!eting Association 6A9A7, the organi3ation that re&resent 'ar!eting &rofessional in the United States and /anada, defined 'ar!eting as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to creat exchangees that satsfy individual and organizational objectives This 'ar!eting defination focused on :;+change< as a central conce&t" 9ar!eting faliciates the e+change &rocess and develo&'ent of relationshi& $y carefully e+a'inning the needs and ,ants of consu'erd, develo&ing a &roduct or service that satisfy these needs, offering it at a certain &rice, 'a!ing it availa$le through a&articular &lace or channel of distri$ution and develo&ing a &rogra' of &ro'otion or co''unication to create a,areness and interest" These are denoted as 9ar!eting 2(s = (roduct, (rice, (lace and (ro'otion" %t also called as 9ar!eting 9i+" %ntegrated 'ar!eting /o''unicatio$ 6%9/7 is a conce&t of co''unication &lanning that recogni3e added value of a co'&rehensive &lan" %9/ is a strategic $usiness &rocess used to &lan, develo&, e+ecute and evaluate coordinated, 'easura$le, &ersuasive $rand co''unication &rogra' over ti'e ,ith consu'ers, &ros&ects, e'&loyees, associates and other targeted relevant e+ternal and internal audiences" The goal is to generate $oth short ter' financial returns and $uild long>ter' $rand and shareholder value" 1eather art co'&any launched for &rofit earning" &lanning follo,s 21st century?s concern" ;arning &rofit #olistic 'ar!eting conce&t is a&&lied for this co'&any" 'ar!eting 'i+ and social res&onsi$ility" To achieve integrated 'ar!eting co''unication" /o'&any?s strategy or 'ar!eting is not only target for this co'&any" This conce&t re)uires intergration of the goal, co'&any carefully follo,

2" 4$@ective of the Study

Behind the every ,or! there 'ust have so'e &ur&oses and goals as ,ell" So, in our research, there are so'e 4$@ectives" They are 'entioned $elo,:

%($

&rimary

0?ective o' the ,tudy

The Primary Objective of our re&ort is the de&th analysis of the 'ar!eting &lanning and i'&lication of %9/ of 1eather Art /o'&any in Bangladesh"

%(%

,econdary

0?ective o' the ,tudy

The Secondary Objectives are = 1( To find out the varia$les and relevant strategy for seg'enting the 'ar!et" 11( To find out their target 'ar!et selection strategy" 111( To find out the effective ,ays of their &ositioning in the 'ar!et"

%(5 Methodology
The %9/ &lan ,as largely involved in accu'ulation of infor'ation that co'es &artly fro' the (ri'ary and &artly fro' the Secondary sources"

%(5($ &rimary ,ources

(ri'ary sources ,ere those individuals around us ,ho fa'iliar ,ith 1eather 'ar!et

%(5(% ,econdary ,ources

Secondary infor'ation ,as collected fro' the ,e$ site and the ne,s &a&er"

5(2 Limitations o' the ,tudy

*e have faced different ty&es of &ro$le's at the ti'e of conducting this survey" These &ro$le's.li'itations are 'entioned $elo,: Ao availa$le data &articularly this sector" Bovern'ent &olicies Aot enough infor'ation a$out foreign $uyers" Ao enough infor'ation of local $uyers

C7A&/=>"11
2"0 9ar!eting &lanning of 1eather Art /o'&any
8($ Current market situation: *hen e'&loying a target 'ar!eting strategy, the 'ar!eter identified the s&ecific needs of university students 6Seg'ents7 selects one or 'ore grou&s of these seg'ents as a target and develo&s 'ar!eting &rogra's directed to each " This a&&roach has for' increased a&&lica$ility in 'ar!eting for a nu'$er reasons, including changes in the 'ar!et 6/onsu'er are $eco'ing 'uch 'ore diverse in their needs, attitude and life styles7" Target 'ar!et identification isolated consu'ers ,ith si'ilar lifestyles, needs, and li!e and increases our !no,ledge of their s&ecific re)uire'ents" The 'ore 'ar!eters can esta$lish this co''on ground ,ith consu'er, the 'ore effective they ,ill $e addressing these re)uire'ents in their co''unications &rogra's and infor'ing and or &ersuading &otential" )igure 8: Market 1denti'ication

S ales
Pierre Cardin 18%

Local made leatherproducts 12%

Apex Leather goods 21% China made PVC bags and purses 49%

1.2 Market description:

9ar!eting strategy is $ased on a situation analysis> a detailed assess'ent of current 'ar!et condition facing the /o'&any and its &roducts line or its individual Brand" Leather Art identify, the target custo'er and understand the 'ar!et and analysis various o&&ortunities ,ith 'ar!et seg'entation" 8(% &roduct review: 4ur &roduct offers the follo,ing standard features: 1ocal and e+&ort oriented 1eather &roducts" Duality 1eather for ,orld standard $y &ro'inent $rand i'age"

Distinctive i'age of 09B &roducts in local and international 'ar!et" ;nviron'ental friendly" Attractive designs colors

/a0le: $($ /arget segment #ouse hold 6/onsu'er 'ar!et7 4ccasional 6/onsu'er 'ar!et7 /asual 6Business 'ar!et7 Unifor' 6/onsu'er Business 'ar!et7 Lists o' Leather products: $( Corporate 0ag 'or mens . ladies: Customer need Basic re)uire'ent of $ags or &urse Traditional culture /o'fort create status Corresponding 'eature and 0ene'its (erfect )uality and longevity ,ith volu'e &roductivity Si'&le and co'fort #igh class $rand i'age /o'fort, /olorful and design

%nstitutional or /or&orate user

%( Ladies 0agEpurses:

5( Aallets and card holder:

8( Belt E 9ey holder

10

8(5 pportunity Analysis: A careful analysis if the 'ar!et &lace should use to alternative 'ar!et o&&ortunities for e+isting &roduct lines in current and ne, 'ar!et" 9ar!et o&&ortunities are areas ,here there are favora$le de'and trends, ,here :Leather Art< $elieves custo'er needs and o&&ortunity" For ;+a'&le: %n do'estic 'ar!et roles of china 'ade (F/ $ags ladies &urse ca&turing the 'ar!et $ut the end custo'er ,ere not ha&&y to use it or its )uality" So ,e can target that !ind of custo'er to achieve their need and ,ants and fulfill the custo'er satisfaction( 8(8 Competitive Analysis: %n develo&ing the fir' develo&ing strategies and &lace for its &roducts and services the 'anager 'ist carefully analy3e the co'&etition to $e faced in the 'ar!et&lace" This 'ay range fro' direct $rand co'&etition 61i!e (ierre /ardin, A&e+ leather goods, 1ocal 'ade lo, )uality $ags and china (F/ $ag7" An i'&ortant as&ect of 'ar!eting strategy develo&'ent is the search for a co'&etitive advantage, so'ething s&ecial a fir' does or hat than gives it an edge over co'&etitors ,ays to achieve a co'&etitive advantage include having )uality &roducts that co''and a &re'iu' &rice, &roviding su&erior custo'er service, having lo,est &roduction costs and lo,er &rice" Leather Art offering co'&etitive &rice and high )uality leather &roducts ,ith su&erior custo'er value"

8(4 Distri0ution review: Usually 0etailer direct i'&ort leather goods fro' a$road" 1ocal 'anufacturers sale goods $y their o,n outlet" 8(# Cision 1eather Art as&ires to $eco'e one of the largest leather goods 'anufacturing units ,ithin the su$continent" The co'&any?s short ter' goal is to diversify its su&&ly into ne, 'ar!ets" %ts long ter' goal is to $eco'e a recogni3ed na'e ,orld ,ide as a 'anufacturer of high )uality leather goods" 1eather Art has, had and ,ill al,ays strive to $e true to it 'otto ,hich is :*e are never on ti'eG rather ,e are al,ays ahead of ti'e<" The vision for 1eather Art is to have a sustaina$le gro,th in ter's of out&ut and )uality and to 'a!e a significant contri$ution to,ards the $etter'ent of the ,or!force in the co'&any"

11

8(:

0?ectives

&rimary o0?ective: (ri'ary o$@ect of 1eather Art is to ca&ture 12H of 'ar!et share" %n order to achieve this o$@ective, target &roductivity set 1"5 'illion of leather goods &roduction" ,econdary o0?ectives: 4$@ective is to a,are &eo&le regarding leather &roducts" 4$@ective is to &rovide !no,ledge a$out leather &roducts" 4$@ective is to set li!ing of core $enefits of &roduct" 4$@ective is to set &reference of $enefits of &roducts 4$@ective is to convince &eo&le for $uying &roducts 4$@ective is to force target custo'er to &urchase

0?ectives and issues: *e have set aggressive $ut achieva$le o$@ectives for the ne+t financial year of 'ar!et entry" $st year: During the initial year on the 'ar!et, ,e are ai'ing sales of volu'e 1"50 'illion of &roductivity 6Target ca&turing 'ar!et share 12H7 1ssues: 4ne 'a@or issue is our a$ility to esta$lish a ,ell regarded $rand na'e :1eather Art< lin! to a 'eaningful &ositioning" *e ,ill have to invest heavily in 'ar!eting to create a 'e'ora$le and distinctive $rand i'age &ro@ecting innovation, )uality and value" *e also 'ust 'easure a,areness and res&onse so ,e can ad@ust our 'ar!eting efforts in necessary" 4(2 ,A / Analysis: 4($ ,trength: 1" 2" -" 2" 5" 8" 7" State &artici&ation: De'and of local 'aterials: Distinctive i'age of leather as local and e+&ort oriented: /o'&etitive &rice and add feature facilities" Availa$ility of ra, Free Trade Agree'ent 6FTA7 ,ith ;uro&e (ro+i'ity to ;uro&e
12

C" A$le to co''unicate effectively E" 0a, 'aterials i'&orted duty free 10" ;+cess &roduction ca&acity 11" S'all fle+i$le factories 12" Duality levels achieved 1-" 0easona$le &roductivity 12" 0elatively lo, ,ages 15" /urrency &egged to USI 18" Access to ,or!ing ca&ital 17" Trade Association 1C" Availa$le la$our 4(% Aeakness: 1" /o'&etitive &ressure" 2" (olitical crisis" -" Ti'e and season variation fro' ;uro&e 2" *or!er riots 5" 1ess e+&erienced e'&loyee 8" Jno,ledge of overseas 'ar!ets 7" (roduct develo&'ent C" /o'&etitive &ricing E" Alternative constructions 10" (roduction 'anage'ent 11" /ost control 12" Sho& floor su&ervision 1-" 1ac! of )ualified technicians 12" 1a$our training 15" 9anage'ent vision 18" /a&ital needs 17" /ash flo, 4(5 pportunities: 1" #igh de'and in do'estic and foreign 'ar!et" 2" #igh de'and of do'estic &roducts 'aterials" -" ;'&loyees are chea& and ,or!ing for long ti'e" 2" U&grade technology 5" #u$ for Bulf 0egion 8" Aiche 'ar!eting 7" Trade lin!s ,ith 1eather art &artners C" Develo& finished leather E" Asia as a resource 10" Develo& trans&ort lin!s 11" Develo& &rogra''e for S9; 12" Training sche'e industry ,ide 4(8 /hreats:

A'erica

1-

1" %ncrease co'&etition" 2" Do,n,ard &ressure on &ricing" -" 4&erational delay $y custo's and $an!ing activities" 2" Un,illingness to change 5" ;sta$lished nor's in glo$al 'ar!ets not acce&ted 8" Finished leather 7" Sales techni)ues C" 1ac! of ca&ital E" Aegative e+change rates 10" Artificial $arriers to leather trade #(2 /arget Market After evaluating the o&&ortunities &resented $y various 'ar!et seg'ents, including a details co'&etitive analysis 1eather Art /o'&any select only one as a target 'ar!et age $et,een 1C>25 years" This target 'ar!et $eco'es the focus of the 1eather Art 'ar!eting effort and goals and o$@ectives are set according to ,here the co'&any ,ants acco'&lish in this 'ar!et" ;+a'&le 1eather Art target 'ar!et is ,o'en s&ecially" The target 'ar!et &rocess = Identifying Identifying market market with with unfulfilled unfulfilled needs needs Determining Determining Market Market Segmentation Segmentation Positioning Positioning through through market market strategies strategies Selecting Selecting a a market market to to target target

C
Today the ,orld &o&ulation is over 8"5 $illion and is e+&ected to cross the E"0 $illion threshold $y 2050" %n glo$al ter's &o&ulation gro,th ,ill $e highest in the %ndian su$ continent and Asia 'ainly /hina" The &o&ulation in ;uro&e is &redicted to decline" Africa and 1atin A'erica ,ill increase" Aorth A'erica ,ill sho, a 'oderate increase &o&ulation

12

The e+&anding 'ar!ets for leather &roducts $y &otential custo'ers in ter's of si3e rather than &er ca&ita consu'&tion are:> - Asia - Africa - %ndia - /hina" Those sho,ing only 'odest gro,th are:> - ;uro&e - 1atin A'erica - Aorth A'erica The average ,orld annual gro,th rate for the ne+t 8 years is esti'ated at 1"125H &er annu'" During the ne+t 15 years the &o&ulation over 55 is &redicted to increase $y -5"1H in ;uro&e" For 'anufacturers of leather &roducts and shoe'a!ers in &articular, the shift in the age de'ogra&hics fro' a relatively young &o&ulation to an ageing one is significant" This ,ill entail ne, 'ar!eting &lans, techni)ues and &roducts to a&&eal to this &articular 'ar!et seg'ent, $ased around co'fort, value for 'oney and conservative styling"

#($ Market de'inition and segmentation %t is not &ossi$le to develo& 'ar!eting strategies for every consu'er rather the 'ar!eter atte'&ts to identify $road classes of $uyers ,ho have sa'e needs and ,ill res&ond si'ilarly to 'ar!eting actions" As noted $y ;ric A" Ber!o,it+ 0o@er A" Jerin and *illia' 0udelius 'ar!eted seg'entation is dividing u& a 'ar!et into direct grou&s that 1" #ave co''on needs and 2" *ill res&ond si'ilarly to a 'ar!eting action" The seg'entation &rocess involves fine distinct ste&s: 1" Finding ,ays to grou& consu'er according to their need" 2" Finding ,ay to grou& the 'ar!eting action usually the leather &roducts offered avoida$le to the organi3ation" -" Develo&ing a 'ar!et leather &roducts grid to relate the 'ar!et seg'ents to the fir'?s &roducts and actions" 2" Selecting the target seg'ents to,ard ,hich the fir' directs its 'ar!eting actions" 5" Ta!ing 'ar!eting actions to reach target seg'ents" #($($ Bases 'or ,egmentation: Seg'entation is the first crucial ste& in 'ar!eting" Satisfying &eo&le?s needs and 'a!ing a &rofit along the ,ay is the &ur&ose of 'ar!eting" There are various ty&es of custo'ers ,ith

15

different needs and $uying $ehavior" Therefore satisfying the' 'ay re)uire different a&&roaches" %dentifying needs and recogni3ing differences $et,een grou&s of custo'ers is at the heart of 'ar!eting" /o'&anies are recogni3ing that they cannot serve all $uyers in the 'ar!et&lace" 0ather than co'&eting in the entire 'ar!et 6'ass 'ar!eting7 co'&anies identify &arts of the 'ar!et that they can serve ,ell and &rofita$ly 6'ar!et seg'entation and targeting7" #($($($ Geographic ,egmentation: %n the geogra&hic seg'entation a&&roach 'ar!ets are divided into different geogra&hic units" These 'ay include nations, status, countries or even neigh$or" Leather Art follo,s the status of fashion" #($($(% Demographic ,egmentation: Dividing the 'ar!et such as age, se+, fa'ily si3e, education, inco'e and social class is called de'ogra&hic seg'entation" Leather Art follo,s the 1C to 25 ages and $oth of se+ ,ith higher education students fro' 'iddle class of society" #($($(5 &sychographic ,egmentation: Dividing the 'ar!et on the $asis of &ersonality or lifestyles is referring to as &sychogra&hic seg'entation" Leather Art follo,s student lifestyles" #($($(8 Behavioral ,egmentation: Dividing consu'ers in to grou&s according to their usage, loyalties or $uying res&onds to leather &roducts is called $ehavioral seg'ents" a( ccasions F dividing the 'ar!et into grou&s according to occasions ,hen $uyers get the idea to $uy, actually 'a!e their &urchase, or use the &urchased ite'" 0 ( Bene'its F dividing the 'ar!et into grou&s according to the different $enefits that consu'ers see! fro' the &roduct"

#(% /arget market segment strategy The /o'&any strategically analy3es their 'ar!et seg'ents to select the strategy of those 'ar!et seg'ents" They critically analy3e their custo'ers, co'&etitors, &ositioning strategy, and financial and 'ar!et attractiveness"

18

#(%($ Customer Analysis /usto'er satisfaction is considered as $eing the 'ost i'&ortant and vital things in &rogress" Their o$@ective is to find out the descri&tive characteristics that are highly correlated to the varia$les used to for' the seg'ents" They find out as 'uch infor'ation as &ossi$le a$out their &ros&ects in each seg'ent" An essential &art of their custo'er analysis is deter'ining ho, ,ell the $uyers in the seg'ent are satisfied" The 1eather Art /o'&any focuses on: /usto'er Data$ase" Betting ne, &otential custo'ers, side $y side retaining old ones"

#(%(% Competitor Analysis The 1eather Art /o'&any al,ays focuses on the analysis of their !ey co'&etitors currently active in the 'ar!et in ,hich the seg'ent is located &lus any &otential seg'ent entrants" To select the strategy of their 'ar!et seg'ents, the /o'&any analy3es = The 'ar!et &osition of their rivalsG The strengths ,ea!nesses of their co'&eting $randsG

The total custo'er si3e, 'anage'ent e+&eriences ca&a$ilities of their co'&etitorsG The 'ar!et &ositioning strategies, financial etc" technical strengths of their rivalsG

Fro' our research ,or! ,e have found that the 'a@or co'&etition faced $y 1eather Art in our country is /hinese $ased co'&anies ,hose are su&&lying leather goods and there are lots of fa'ous $rands doing $usiness for long long ti'e #(%(5 &ositioning Analysis The 1eather Art /o'&any conducts &ositioning analysis that co'$ines their &roduct, &ricing, &ro'otion and distri$ution strategies for develo&ing favora$le &osition in the 'ind of their custo'ers" They are trying to i'&le'ent an effective &osition strategy in the 'ar!et through 'eeting the needs and re)uire'ents of their targeted $uyers at a cost that yields a &rofita$le 'argin for the'"

17

#(%(8 ,egment Attractiveness Analysis There are three factors that a fir' can use in evaluating different 'ar!et seg'ents" These are si3e and gro,th of the seg'ent, seg'ent structural attractiveness, and co'&any o$@ectives and resources" Seg'ents that should $e chosen are those ,ith the right si3e and gro,th characteristics" #o,ever, the largest and fastest gro,ing seg'ents are not al,ays the 'ost attractive" The structural factors that affect attractiveness of a &otential seg'ent 'ust also $e e+a'ined" The 1eather Art /o'&any in Bangladesh evaluates $oth the financial and 'ar!et attractiveness of their each seg'ent that included the s&ecific esti'ation of costs, revenues, and seg'ent &rofit contri$ution over the &lanning hori3on" They 'easure their 'ar!et attractiveness $y 'ar!et gro,th rate &ro@ections" They conduct the co'&etitive &osition evaluation and the financial forecasts to co'&are each of their seg'ents"

#(5 /arget market After evaluating the different seg'ents, the co'&any decides ,hich and ho, 'any seg'ents to target" A Target market is a set of $uyers sharing co''on needs or characteristics that the co'&any decides to serve" Targeting 'eans to selecting attractive seg'ents to enter" Target strategy $asically falls into t,o categories = Targeting ,hen seg'ents are clearly defined, and Targeting $ased on &roduct differentiation"

1C

#(5($ 6eed and reGuirements 'or target market The follo,ing are different levels of target 'ar!eting: 1" -ndi''erentiated Marketing or Mass Marketing F ignore different 'ar!et seg'ents and target the ,hole 'ar!et ,ith one offer" 2" Di''erentiated Marketing or ,egmented Marketing F a fir' decides to enter different 'ar!et seg'ents and designs se&arate offers for each" -" Concentrated Marketing or 6iche Marketing F s'aller than seg'ents and 'ay attract only one or fe, co'&etitors 2" Micromarketing F tailoring &roducts and 'ar!eting &rogra's to suit the tastes of s&ecific individuals and locations" #(5(% Distri0ution channel 1eather Art /o'&any initially starts $usiness ,ith o,n retail outlet in local 'ar!et" /onsidering gro,th of 'ar!et, co'&any ,ill use distri$utor under s&ecific condition" For international $usiness, co'&any 'ay franchise it?s $rand and distri$ute goods to custo'er through distri$utor channel" )ig: Distri0ution Channel

LA

Retail outlet

ranchise

Customer

Distributor

#(5(5 Competitive 'orce /hinese (F/ &roducts ,ith lo, &rice and lo, )uality ca&ture leather 'ar!ets in Bangladesh as ,ell as ,orld 'ar!et" There are so'e reno,ned $rand doing ,ell ,ith )uality &roduct $ut they are very e+&ensive" 1eather Art co'&any?s first co'&etitor is /hinese &roduct ,hich already ca&tured 'a+i'u' 'ar!et share" #(5(8 Communications Advertising, direct 'ar!eting, tele 'ar!eting, (u$licity, &ro'otional activities define it?s co''unication strategy"
1E

#(5(4 9ey to success Jey success factor of 1eather Art co'&any is &roduct differentiation, )uality and lo, &rice" :(2 Marketing plan strategy

:($ Marketing strategy: 1eather?s 'ar!eting strategy is $ased on a &ositioning of &roduct differentiation" 4ur &ri'ary consu'er target is middle and upper income &rofessionals ,ho need for use of leather?s good as ,ell as &ersonality i'age" This seg'ent can $e descri$e de'ogra&hically $y age 61C>257 and education status" 4ur &ri'ary $usiness target is 'iddle and u&&er &rofessional ,hose can achieve 1eather Art easily" ;ach of the four 'ar!eting 'i+ strategies coveys 1eather Art?s differentiation to the target 'ar!et seg'ent identified a$ove" :(% &ositioning strategy: Using &roduct differentiation, ,e are &ositioning 1eather Art as the 'ost fashiona$le and co'forta$le for use" 9ar!et research ,ill identify infor'ation a$out co'&etitors ,hich ena$ling to define &ositioning strategies" Deter'ining &ositioning strategies include &rocess of = %dentifying co'&etitors Assessing consu'er &erce&tion of co'&etitors Deter'ining co'&etitors &osition Analy3ing the consu'er &reference 9a!ing &ositioning decision 9aintaining the &ositioning

/onsidering a$ove &rocess of identifying &ositioning of co'&etitors, 1eather Art can select &ositioning $y (ositioning $y (rice (ositioning $y co'&etition

:(5 &roduct strategy:

20

(roduct revie, descri$es the !ey feature of 1eather &roducts that it includes attractive design, color and style ,hich re&resent distinctive i'age" :(4 &ricing strategy: *e ,ill e+&ect to lo,er the &rice of this first seg'ent ,hen ,e e+&and the &roduct line $y launching ne, &roduct to $e are 'ini'u' &rice" These &rices ,ill $e reflected a strategy of 617 Attracting desira$le channel &atterns and 627 tal!ing 'ar!et share fro' other $rands" :(# Distri0ution strategy: 4ne channel strategy us to use selective distri$ution to have 1eather Art sold through ,ell !no,n stores" During the 1st year 1eather Art ,ill add channel &artners until ,e have 'a@or coverage in international 'ar!et as ,ell as local 'ar!et and the &roduct is included in the 'a@or 'aga3ines and ,e$sites" %n su&&ort of our channel &artners 1eather Art ,ill &rovide full color &hoto and dis&lay featuring the &roducts" 1eather Art ,ill also arrange s&ecial trade ter's for retailers that &lace volu'e orders" :(: Marketing communication strategy: Developing 1MC planning By integrating all 'essages in all 'edia, 1eather Art ,ill reinforce the &roduct na'e and the 'ain &oints of &roduct differentiation, es&ecially our e+clusive design and style feature" 0esearch a$out 'edia consu'&tion &atterns ,ill hel& our advertising agency choose a&&ro&riate 'edia and ti'ing to reach &ros&ect $efore and during &roduct introduction" Thereafter advertising ,ill a&&ear on a &ulsing $asis to 'aintain &roduct a,areness and co''unicate various differentiation 'essage" The agency ,ill also co>ordinate &u$lic relations efforts to $uild the 1eather Art and su&&ort the differentiation 'essage" To attract 'ar!et attention and encourage &urchasing, ,e ,ill offer as a li'ited ti'e &re'iu' ,ith handso'e &ac!age, to attract retain and 'otivate channel &artners for a &ush strategy, ,e ,ill use trade sell &ro'otions and &ersonal selling to channel &artners" Until the 'ar!et has $een esta$lished, our co''unication ,ill encourage &urchases through channel &artners rather than fro' our advertising" :(; Analy!e communication process: Analy3e co''unication refers receiver?s res&onse and feed$ac!" 1eather Art co'&any esta$lish data$ase 'anage'ent ,here &ut all custo'er infor'ation a$out $uy and &urchase decision 'atter" 1A holds i'&ortant 'easure a$out source of infor'ation, 'essage, channel factors and esta$lished co''unication o$@ective and goal in order to 'onitor, evaluate and control %9/ &rogra'" :(3 Budget determination: 1eather Art /o'&any calculates and set $udget for %9/ &rogra' in their financial 'anage'ent decision" %nitial $udget has set CH fro' target &rofit and $udget deter'ination 'ay vary or change during account &eriod if decision 'ay ta!e" :($2 Developing 1MC program:

21

Develo&ing %9/ &rogra' is generally the 'ost involved and detailed ste& of the &ro'otional &lanning &rocess" ;ach &ro'otional 'i+ has certain advantage and li'itations" At this stage decision 'ust $e 'a!e regarding the role and i'&ortance of each ele'ents and their coordination ,ith another" For e+a'&le, The advertising &rogra' ,ill have its o,n set of o$@ectives, usually involving the co''unication of so'e 'essage or a&&eal to a target audience" A $udget ,ill $e deter'ined, &roviding the advertising 'anager and the agency ,ith so'e idea of ho, 'uch 'oney is availa$le for develo&ing the ad ca'&aign and &urchasing 'edia to disse'inate the ad 'essage" T,o i'&ortant as&ects of the advertising &rogra' are develo&'ent of the 'essage and the 'edia strategy" A si'ilar &rocess ta!es &lace for the other ele'ents of the %9/ &rogra' as o$@ectives are set, an overall strategy is develo&ed, 'essage and 'edia strategy are deter'ined and ste&s are ta!en to i'&le'ent the'" :($2($ Advertising: Strategy has $een set for co''unication of 'essage to 'ar!et" Advertising is the 'ost effective ,ay to a,are 'ass &eo&le a$out &roduct and service" Advertising 'ay classified as = Advertising to /onsu'er 'ar!et Advertising to Business and &rofessional 'ar!et

Advertising strategy has $een set ,ith &articular o$@ective and goal" Authori3ed &ersonnel has $een engaged to 'onitor, u&date and for'ulate advertising strategy" :($2(% Direct Marketing: 1eather Art co'&any esta$lish it?s direct 'ar!eting through co'&any and retail outlet ,here co'&any directly co''unicate ,ith custo'er" :($2(5 1nteractive E 1nternet marketing /o'&any launch ,e$site ,,,"leatherart"co' ,here custo'er can directly co''unicate ,ith co'&any regarding &roduct and service or any $uy decision" :($2(8 ,ales promotion 1eather Art /o'&any offers sa'&ling, cou&oning, ,arranty for custo'ers" /o'&any offers $usiness and &rofessional so'e &ro'otional gift of card holder, ,allets, !ey holder, official $ag etc" :($2(4 &u0lic relationE &u0licity For &u$lic relation or &u$licity 1eather Art /o'&any arrange &rogra' in order to introduce its &roduct to 'ass &o&ulation"

22

:($2(# &ersonal selling: ;ach co'&any atte'&t &ersonal selling for )uic! sale and feed$ac!" 1eather Art /o'&any also atte'&t &ersonal selling to its Aiche target 'ar!et ,here custo'er are very s&ecial" ;(2 Marketing research: Using research ,e are identifying the s&ecific feature and $enefits that our target 'ar!et seg'ents value" Feed $ac! fro' 'ar!et tests, surveys and focus grou&s ,ill hel& us develo& 1eather 'ar!et" *e are also 'easuring and analy3ing custo'ers attitude to,ard co'&eting &roducts" Brand a,areness research ,ill hel& us deter'ine the effectiveness and efficiency of our 'essage and 'edia" Finally ,e ,ill use custo'ers satisfaction studies to gauge 'ar!et reaction" ;($ /est marketing Test 'ar!eting is the 'ost i'&ortant issue to understand the &ros&ect of $usiness and get clear idea a$out $udget deter'ination in %9/ &rogra'"

3(2 Marketing organi!ation: 1eather Art /;4 holds overall res&onsi$ility for 'ar!eting strategy and direction"

$2(2 Action programs: 1eather Art ,ill $e introduced soon in ne, sha&e under local entre&reneur and ,ill target seg'ents to achieve &roductivity and sales volu'e in ne+t financial year"

$2($ Aspect $ " &roduction %n &ractical ter's the 1eather Art /o'&any should ta!e the o&&ortunity under this &ro@ect to organi3e the'selves so that they are in a &osition to $e a$le to 'anufacture the various &roducts re)uired for inter 1eather to a level of efficiency, )uality and co'&etitiveness that satisfies the B2B and consu'er 'ar!ets in the various countries" ;sta$lishing the'selves in the 'ar!et ,ill also strengthen the offer the co'&anies can 'a!e to the ;U 'ar!ets"

2-

$2($($ 1ntegration and ,upply opportunities

%n order to achieve integration and find su&&ly o&&ortunities the follo,ing actions should $e carried out:

22

$2($(% Cost Competitiveness %n order to 'aintain cost co'&etitiveness, the follo,ing actions should $e carried out: Action ;ach /ountry to co''ission a study on hides and s!ins collection ,ith an e'&hasis on reducing ,aste /reate an international data $ase on sourcing, su&&liers, and &rices of the 'a@or che'icals re)uired in tanning Ta!e advantage of the ne, leather cities as an o&&ortunity to re>organi3e &roduction &rocesses to reduce costs hold an 1eather art se'inar on the techni)ues ,ith a vie, to reducing latest tanning costs >esponsi0ility Tanners Associations Tanners Associations The Tanning /o'&anies >esources /entral Bovern'ent su&&ort /entral Bovern'ent su&&ort

Business develo&'ent agencies offering &referential induce'ents for ca&ital invest'ent

Tanners %nvitations to international che'ical Associations The and 'achinery co'&anies to attend Tanning /o'&anies the se'inar

$2($(5 Huality 1mprovement %n order to i'&rove )uality, the follo,ing actions should $e carried out:

Action
%n con@unction ,ith the study a$ove further ,or! should study slaughtering and &reservation techni)ues ,ith the o$@ect of u&grading the ra, 'aterial" %ntroduce an 1eather Art ,ide classification syste' for finished leather %n con@unction ,ith the 1eather art se'inar a$ove further ,or! should study the latest finishing techni)ues

>esponsi0ility
Tanners Associations

>esources
/entral Bovern'ent su&&ort

Tanners Associations

/entral Bovern'ent su&&ort

Tanners Associations The Tanning /o'&anies

Bovern'ent su&&ort agencies and Tanners

25

$2($(8 &roductivity 1mprovement

%n order to i'&rove &roductivity, the follo,ing actions should $e carried out:

action

>esponsi0ility

>esources

Feasi$ility studies on 'an versus The Tanning /o'&anies %n house 'anage'ent 'achine for &roductivity gains Bench'ar!ing&roductivity $est The Tanning /o'&anies Bovern'ent su&&ort &ractices in S&ain, %taly, %ndia and agencies and Tanning Tur!ey co'&anies %'&le'ent a &roductivity The Tanning /o'&anies Bovern'ent su&&ort i'&rove'ent drive agencies and Tanning co'&anies

$2($(4 /raining
%n order to i'&le'ent training, the follo,ing actions should $e carried out:

action

>esponsi0ility

>esources

Assist any country fro' 1eather Kone %ndividual 1eather and Bovern'ent su&&ort ,ho is interested to esta$lish shoes associations agencies s&eciali3ed training center in the 1eather and shoes industry" Sho& floor su&ervisors, la$oratory The Tanning /o'&aniesAny country for' the L Technicians and research and countries ,ho have develo&'ent &ersonnel should attend advanced the &ro&osed se'inar a$ove e+&erience in this field Selected and a&&ro&riate &ersonnel to The Tanning /o'&aniesBovern'ent su&&ort attend the 1inea (elle leather agencies sho, in %taly to study the latest develo&'ents on dis&lay" develo& u& to date s&eciali3ed training Tanning associations %ndividual country &rogra' in the tanning industry develo&'ent agencies $enefiting fro' ,hat ,ill $e &resented $y the international che'ical andTanning co'&anies of Bovern'ent su&&ort 'achinery co'&anies during the the countries agencies se'inar and the leathersho, a$ove

28

11"o Suggestions

0eco''endations

After co'&leting our &ro@ect ,e have concluded so'e reco''endations for the 1eather Art co'&any, ,hich are given $elo, = 9ar!eting tea' should try to increase the availa$ility of in rural areas" /o'e out innovative &ro'otions that $est fits the region 'ay $e event s&onsorshi& in s'all scale for villages" /reate the de'and on the $asis of age, &lace, consu'er?s taste and &ersonality etc" According to our survey, Bangladeshi &eo&le li!e lo, &rice &roduct" So for this 1eather Art /o'&any should &roduce their &roduct according to the local de'and" 1eather art /o'&any should try to e'&hasis 'ore on &roviding their infrastructure in the 'ar!et to facilitate their custo'ers" They should not only focus 'ore on young generation $ut also need 'ore focus on 'iddle>aged and the old &eo&le" Should try to invent ne, ,ays to stay relevant" 1eather Art /o'&any ,ould $e a glo$al $rand" %t is al,ays a hard ,or! to 'aintain the sa'e i'age around the ,orld" A $ad &atch in a single country 'ight ha'&er the total i'age around the ,orld" That is ,ay !ee& researching the 'ar!et to address the changing environ'ent i''ediately"

27

12" /onclusion

The /o'&any deals ,ith continuing its strong ,ell> recogni3ed consu'er $rand na'e do'estically and internationally" The co'&any strives to recogni3e good gro,th &ros&ects and o&&ortunities for ne, and alternative &roduct develo&'ent ,ithin each of its core $usinesses" So, ,e co'e to the conclusion that the 'ar!eting strategy of 1eather Art is ,or!ing for the' and the &roduct is gaining &o&ularity a'ong &eo&le day $y day" *ith an u&co'ing year of ho&efully ne, &ro'ising &roducts, 1eather art 'ight $e loo!ing at their lines of convenient &roduct, services, and co''it'ent to $ring in 'ost of the trust,orthy and $ring revenue due to their increasing &o&ularity and consu'er de'and" *ith e+cellent resources and &lanning, 1eather Art can only $ring in 'ore consu'ers" The co'&any?s financial future &ro@ections are loo!ing &ro'ising and the co'&any?s &rofits ,ill continue to rise ,ith 'ore consu'ers drin!ing their &roducts daily ,orld ,ide"

2C

C7A&/=>"111
1-" Sources.0eferences
1" Te+t Boo!: Advertising and (ro'otion $y Beorge ;" Belch 9ichael A, Belch 7th ;dition 2" htt&:..en",i!i&edia"org.,i!i.9ainL(age -" Bangladesh 1eather 9anufacturing ;+&ort association 2" Business &lan of Asian and ;uro&ean 1eather 'anufacturer and e+&orter" !" #Princi$les of Marketing%& Phili$ 'otler& (ray Armstrong& )le*enth )dition" +" #Marketing Management%& Phili$ 'otler& Millennium )dition" 7" Annual re&ort of (%/A0D Bangladesh 1td" C" Annual re&ort of Adagir Brou& 6Mordan, ;gy&t, 9orocco and Tunisia7

2E