Internship Report on Progressive Foot wear Ltd

Introduction:

embodies the prefatory part.  Section 1 of the prefatory part introduces the reader with the origin, purposes and the limitation of the report. Moreover, the part enables the reader with the relevant limitation experienced regarding the report information

Later the Host Organization study has been presented in section 2 This section familiarizes the reader with the corporate profile, parent company, mission, historical inception.

The organization study has been presented in next part  Having presented the Organgram of the company in the beginning, this part attempts to illustrate all the departments in of Progressive Footwear Ltd in details. Strengths and weaknesses of the Progressive Footwear Ltd have been discussed in light of the internship experience. Moreover, this part includes some tables regarding the market movement of brands and their performance.

 Next Chapter includes the overall industry scenario and the competitor analysis, to project Progressive Footwear Ltd’s position and its market share. Analyzing the products standing and the value delivered by Progressive Footwear Ltd to its consumers, enriches this part in chapter.

Being a competitive as well as an essential program, an internship familiarizes students to the working environment of the real world. In fact, it is the best opportunity for students to improve their interpersonal as well as managerial skills. Further, it enables students to apply theoretical concepts to real life situation. As they are exposed to the diverse business world, students also get access to further networking opportunities after graduation and a leading edge in the job market. Finally, it helps the interns to polish their strengths and weakness for greater leadership ability.

As far as an internship program is concerned, it is a prerequisite for the BBA degree at The University of Asia Pacific. Further, the program consists of an organizational attachment for twelve weeks and the submission of an internship report. Successful completion of the program fulfills the requirement of a BBA degree.

BBA is a professional degree. This degree is different from other degrees in the extent that it requires to achieve practical experience with relation to the theory. For this reason BBA students require to undergo internship program where they match practical knowledge with that of theoretical knowledge which the acquired throughout the degree. The degree doesn’t complete unless a written report submitted to the faculty, basing on what have the students learned through the internship program. Being a student of BBA (major in Marketing) in The University of Asia Pacific, I had the opportunity to work at Progressive Footwear Ltd from August 28, 2008 to November 30, 2008. This report is prepared based on by observation during the tenor I was with them. This program consists of three phases:

• Orientation to Organization: To accustom the internee with the structure, functions, and performance of the organization.
• The Project Work: Pertaining to a particular problem matching with the internee’s capacity and organization’s requirement.
  • The Report writing: To epitomize the internee’s analysis, findings and achievements, in the proceeding one phase.

In this connection, I was assigned to Progressive Footwear Ltd. all departments for my practical orientation. The topic “ Application Of Marketing Concept In footwear company” was selected the organization.  I, prepare this report under the supervision of Shahriyar Anam, Head Department of Business Administration, The University of Asia Pacific.

OBJECTIVE OF THE REPORT:                                                                           

General Objective:

The objective of the case study is to develop the concept about the various aspects of the organizational structure, success & marketing process of the footwear industry. This case study will help me to analyze the various concept of marketing, formal hierarchy, standardized export policies & rules, organizational network, various types of approaches to make profit, decision making in stable & unstable situation, how to improve the quality of products & the production process which will enrich my experience for my future career.

Secondary Objective: 

Objectives regarding this study are as follows:

• To fulfill academic requirement;
• To assess the performance of Progressive Footwear Ltd in both absolute and relative term in a comparative manner.
• To find out the trends in order to predict the future level and pattern of the variables from the consequences of existing level and rate of changes of different variables.
• To gain practical knowledge in Footwear.
• To identify major strength and weakness of Progressive Footwear Ltd in respect to other Footwear.
• To assess and evaluate the growth trends on Progressive Footwear Ltd among other Footwear.
• To recommend ways and means to solve problems Footwear industry.

Our secondary objectives are as follows:

 To identify the marketing strategies (4Ps) of Progressive Footwear Ltd.

          To know their market strategy on product line and its current market.

To evaluate the promotion campaigned of the company.

 To provide recommendations to Progressive Footwear Ltd to whole its current market share and to increase further with giving the customers more value and satisfaction. 

The duration of the study was a very short span of time. It Is three month long internship program (August 28, 2008 to November 30, 2008). It was very much hard to complete a report as well as assigned tasks by organization. So I had to complete this study facing very much time presser.

During my internee period I have got chances to visit many buying house, supervise many production process, & completed many sample program. The scope of this report is to analyze the status of footwear export, which has some performance indicator and significant contribution to the national economy

METHODOLOGY:

Research Design

Research design has been developed by following the identification of the research problem. Research design is a master plan specifying the methods and procedures for collecting and analyzing the needed information. Due to the Research inexperience and the lack of knowledge about the research issue exploratory research has been conducted to clarify and define the nature of the problem more speciously.

Research Method:

For collecting the primary data survey research method has been used. Survey is a research technique in which information is gathered from a sample of people by use of a questionnaire.

Data Collection:

Both the primary and secondary form of information is used to make the report more meaningful and presentable. The details of these sources are given below:

Primary Sources:

• Hand on experience and exposure on the different sections of bank during Internship Program practicum helped in collecting data from the all levels of management of Progressive Footwear Ltd. especially Mr. Mansur Ahmed (Head of Marketing Department.
• Informal conversation with the clients and Suggestions of many executives of footwear.

Secondary Sources:

• “Annual Report” of Progressive Footwear Ltd.
• Various book, articles, compilations etc regarding footwear   Operations and Business Communication
• Instruction circular of Head Office, Brochures of different footwear, News Paper & Magazine regarding Banking issues, Seminar papers and so on.

Data Processing and Analysis:

The informative portion of this report is based on the primary data such as personal observations and interviews with members of staff of Progressive Footwear Ltd and secondary data collected from internal sources. The analytical portion of this report is the outcome of numerous numerical data collected mainly from the external secondary source. Prior to analysis, data collected form the above mentioned sources were classified further for making them suitable for analysis. For analysis purpose different statistical techniques were used such as-

• Time series analysis
• Correlation and Regression analysis

Layout:   All necessary parts of conventional formal report have been followed. The readers are expected to get a different taste from this report.

There were certain limitations regarding the study that is summarized below:

• The main hindrance behind preparing this report was time. The tenure of the Internship program is only three months. So, it is not possible to go through in depth within this short span of time.
• Deficiencies in data required for the study.
• Contradictory information.
• Field practice varies with the standard practice that also created problem.
• Sufficient records, publications were not available as per my requirement.
• Information is not processed through computer.
• Bangladesh Footwear industry still now is not that much developed. When I enter in Progressive Footwear Ltd they don’t even have their footwear profile. I have created the profile.
• I found so many difficulties in searching information.
• Foreign buyers English is not that much clear.
• There are many code names in footwear industry that is very important for production process, and I have memorized those codes.
• In footwear factory most of the employee doesn’t have any educational background they do their job only with experiences.

At the time of preparing this report we had to face some limitations that may negatively had effect the report and these are stated bellow.

Introducing the Company:

Progressive Footwear Ltd means Elegant & fashionable footwear:

Progressive Footwear Ltd the name of the most popular name around the globe in terms of fashionable Footwear. If any one mentions the name of “Progressive Footwear Ltd”- now simply think of shoes. Truly “Progressive Footwear Ltd” has the most diversified shoes quality, style and value of different reasonable prices. Today Progressive Footwear Ltd is a name of widely recognized fashionable footwear manufacturing company.

Background of the company:

     Progressive Footwear Ltd is established in 1994 by Faizul Islam Mukit. Organization companies, organized operations into autonomous workshops and departments allowing employees to contribute ideas and stimulate production, and contributed significant breakthroughs in footwear technology. His investment would come to revolutionize shoe manufacturing of that day would be the start of a family legacy of well-designed and durable shoes, made at prices that everyone could afford. The Progressive Footwear Ltd revolutionized the treatment of employees and labor conditions. He  consistently maintained a human focus, creating opportunities for development and advancement, and added compensation for employees based on achievement. That basic vision, supported by continuous innovation and tireless customer service. Each group benefits from synergies specific to their requirements, such as product development, sourcing and marketing support. Each business unit is entrepreneurial in nature, and can quickly adapt to changes in the marketplace and seize potential growth opportunities.

Company structure:

Total employees:

The number of employees for whole is 184

Growth Scale of Progressive Footwear Ltd:

The mission of Progressive Footwear Ltd is to supply competitively commercial fashion footwear and related product Progressive Footwear Ltd companies focus to contend to more recognition by ensuring that their product meets or exceeds expectation, in terms of quality, style, value and availability. Well, for the last ten years the Progressive Footwear Ltd organization employed 200 people..  Recently Progressive Footwear Ltd introduced shoes to Athletes and bubble gummer.

WORKING ENVIRONMENT:

 Next to its security measures, the factory is will equipped and furnished with enough                   fire-fighting equipment, fire alarms systems and trained personnel for facilitating emergency evacuation. All of which contribute to minimizing the fire- risks. The factory environment, with excellent lighting and ventilation, is one of the very best of its kind in Bangladesh.

Our product:

Here some picture of latest product:

Capital:

After analyzing the recent annual report we found that in 2005, Bata started their business with a capital amount of 18, 17,051 taka. Their net profit increases up to 5, 15, 44700 taka in 2005

Taxation:

Provision for tax has been made at 40% of taxation profit as per finance Act 2001.

Expertise:

Progressive Footwear Ltd is a truly worldwide entity; its major asset is diversity of ideas, training and international exchanges of expertise. It is Progressive Footwear Ltd to provide equality of opportunity without discrimination, to promote on merit and to stimulate people into thinking beyond their immediate national experience. Progressive Footwear Ltd invest in their employees through internally developed local, regional and international training and skills development programs. These programs promote the free exchange of knowledge and ideas within the organization, and help to ensure that all employees share in the Progressive Footwear Ltd goals and principles.

The best product:
Progressive Footwear Ltd offer customers fresh, fashionable footwear and accessories, designed specifically for the needs of the local market. Their shoes are always well made from quality materials.

The best service:
Progressive Footwear Ltd sales associates offer consistently first-class service in Japan, Korea, They are well trained to ensure a proper fit, and we pledge customer satisfaction.

Literature Review:

 Market: A market consists of all the potential customers sharing a particular need or wants who might be willing and able to engage in exchange to satisfy that need or want.

Marketing Mix :

The set of controllable tactical marketing tools – product, price, place and promotion- that the firm blends to produce the response of wants in the target market.

-Principles of Marketing

Product:

A product is anything that can be offered to market to satisfy a need or want.

-Principles of Marketing

Product line:

A product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.

-Principles of Marketing.

Product life cycle (PLC) :

The course of a product’s sales and profits over its life time. It involves five distinct stages: product development, introduction, growth, maturity and decline.

-Principles of Marketing

Price:

Price is the amount of money charged for a product or service.

 -Principles of Marketing

Distribution Channel:

Distribution channel is a set of interdependent organizations involved in the process of making a product or services available for use or consumption by the consumer or industrial user.

Advertising:

Any paid form of no personal presentation and promotion of ideas, goods, or services by an identified sponsor. Short-term incentives to encourage the purchase or sale of a product or service.

-Principles of Marketing

Sales Promotion:                                                                         

    Short-term incentives to encourage the purchase or sale of a product or service.

-Principles of Marketing.

The Marketing Mix

Marketing mix:

The marketing mix is the set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market. The marketing mix consists of everything the firm can do to influence the demand for its product. The many possibilities can be collected into four groups of variables known as the “four Ps”: product, price, place and promotion.

Product     :

Anything than can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need is a product. Progressive Footwear Ltd offers formal shoes, sandals, casual shoes, ladies sandals.. Progressive Footwear Ltd tries to maintain their product superior quality. Progressive Footwear Ltd maintained two product levels, which are Core and Actual Product.

 Quality level:

Quality of any product is very important. Quality product stays in the market for along time. Progressive Footwear Ltd is a quality product producing company. The qualities of the footwear, of Progressive Footwear Ltd are very satisfactory. All of the consumers of Progressive Footwear Ltd are very satisfied with their product.

 Manufacturing:

The Progressive Footwear Ltd show organization has been an innovator in the manufacturing of footwear over the years. In the recent years Progressive Footwear Ltd personnel have made important advances in DVP( Direct Vulcanization Process), PVC, athletic footwear production and slush-mounded footwear production.. That type of thinking has been the driving force behind the Progressive Footwear Ltd organization success. The manufacturing base includes manufacturing units in industrialized and developing countries. State-of-the-art work procedures and organizational structures make manufacturing more flexible. New materials, processes and technologies enhance production while improving quality and durability. Components are checked at each stage of production, with defects detected quickly, their source instantly determined and the problem rectified. It has been the Organization’s system of uncompromising quality control that has driven the reputation of Progressive Footwear Ltd as quality footwear producers.

Features:

All of the Progressive Footwear Ltd products made and marketed by Progressive Footwear Ltd have many extra, added features. The color combinations of the shoes are good. They go for many days. The official and formal shoe of Progressive Footwear Ltd is very comfortable and nice.

Design:

Progressive Footwear Ltd offers their customer fresh, fashionable footwear and accessories designed specifically for the need of the local market. It is designed and made for any age of people. It covers a whole family. The designs of Progressive Footwear Ltd are so simple and average.

Labeling:

In Progressive Footwear Ltd products simple tags attached to products to complex graphics that are part of package.

 Core benefit:

Progressive Footwear Ltd gives core benefit. All the Progressive Footwear Ltd products are useful. They are comfortable and used simply or officially. Progressive Footwear Ltd makes product for every kind of uses.

 Product line:

Product strategy also calls for building a product line. Progressive Footwear Ltd produces several lines of shoes, polishes, sandels, and brushes. They are listed below:-

Shoes

 Sandels

Polish

 Brushes

 New product development:

N.P.D. is a specialty area within the Progressive Footwear Ltd organization. Complete customer service and the ability to affect each part of the shoe business have been the factors that have made the Progressive Footwear Ltd organization a world leader.

 Services:

Progressive Footwear Ltd doesn’t want to focus on service. Because, that focus on profit. So, Progressive Footwear Ltd wants to supply their products at the right time, right place.

Warranties:

When a customer buys a product of Progressive Footwear Ltd he doesn’t think about the warranty. Because, the customer believes in Progressive Footwear Ltd product. After buying a product, if any customer wants to change that, Progressive Footwear Ltd gives the second chance.

Product Variety:

Progressive Footwear Ltd products are differentiated into three categories: –

a) Premium:

Progressive Footwear Ltd has been delivering hand crafting quality footwear for all They built comfortable and stylish shoe. Progressive Footwear Ltd has created the Progressive Footwear Ltd premium collection of products in their design center . These are available in Progressive Footwear Ltd. Progressive Footwear Ltd makes shoe for both men and women.

b) Flexible:                                                                                                  

    Progressive Footwear Ltd produces flexible shoes for all customers. Most of them are in Boot Shape. Working people mostly uses these.

 Price:

Selecting the price of any product is very important for a company. Progressive Footwear Ltd always try to keep an affordable price for the consumers. If a company has selected its target market and positioning carefully, then the price of the product will be fairly straightforward. Progressive Footwear Ltd normally uses the market share strategy. It believes that company with the target market share will enjoy the lowest cost and highest long run profit. The list of prices and products of Progressive Footwear Ltd are given below.

 Price Chart:

In the following chart we can show all the products and their prices of Progressive Footwear Ltd which are now available in the Progressive Footwear Ltd.

Chart

4.2.2 Pricing Approach:

All the companies set prices by selecting a general pricing approach. I found that Progressive Footwear Ltd set the prices of their product in Bangladesh by value based pricing approach. Progressive Footwear Ltd sets its target price based on customer preconceptions of the product value. Pricing beings with analyzing customer’s needs and value preconception.

4.2.3 Value Based Pricing;

Setting price based on buyers preconceptions of value rather than on the seller’s cost.

4.2.4 Value pricing:

Offering just the right combination of quality and good service at a fair price

4.2.5 Discount:

Sometimes Progressive Footwear Ltd allowing discount on the basis of occasion or events. In or X-mas day or especial Day Progressive Footwear Ltd allows this discount. They offer 20% of sales price discount on the two pair of shoes.

4.2.6 Payment period:

There is advance payment any product of Progressive Footwear Ltd. The customers have to pay the price for one time. It is a multi-time payment period system.

4.4.3 Promotion mix strategy

Progressive Footwear Ltd follows “Push Strategy”. It means a promotion strategy that calls for using the sales force and trade promotion to push the product through channels. A push strategy involves “pushing” the product through distribution, channels to final consumers.

Company Position

 5.1 BCG MATRIX (The Boston Consulting Groups):

The Boston Consulting Groups (BCG) assumes that a firm must generate cash from the businesses. For this, it needs a strong competitive position in the mature market.  We can see that the vertical axis of the model represents market growth rate. Market growth rate provides a measure of the market attractiveness of an industry. The horizontal axis shows the unit’s relative market share. Relative market share serves as a measure of company strength in the market.

a) Question mark: Business in high growth Industries with low relative market share will be placed in this box.

b) Star: Business in high growth industries with high relative market share falls into this category.

c) Cash cow: Business with high relative market share in a low growth industry falls into this category.

  d) Dog: Low share businesses in low growth markets are called dogs.

Progressive Footwear Ltd in BCG Matrix

Progressive Footwear Ltd has been doing the business for a long time. Also they have lots of competitors and their market share is high. I can understand it from their recent year’s sells data and growth rate is high because every year they are start new business with different countries customer. They are coming up with new designed shoes every year for almost all categories consumers. So I evaluated Progressive Footwear Ltd will be in question mark in the BCG matrix.

5.2      Progressive Footwear Ltd in Product life cycle (PLC):

The product life cycle is concerned with the sales history of a Product. According to the companies information Progressive Footwear Ltd has 120 products, most of them are in growth stage some of them are maturity and decline stage.

From the graph we can see that:

At the introductory stage sales were poor and during that time the advertisements were higher and it had to make brand awareness in the world market. In this stage there is no profit. Growth is the period of rapid market acceptance and increasing profits of the product. Sales were high and the company enjoyed a good profit at that time.

Their product satisfies the market and thus it enters in the growth stage, where the sales are quick. Their favorable response and belief towards this company will help them to have a high sell in the market. New competitors will come to the market, attracted by the opportunities of profit. The market will expand. The company will introduce new offers and features of the product. Price of the product will be same or they might slightly fall. The company will spend more or the same as before for marketing and advertising.

The company will use several strategies to sustain rapid market growth as long as possible. It helps to create pubic awareness of the product. Sometimes it lowers price to attract more buyers or customers/ clients.

5.3 SWOT Analysis

Strength:

ü   Energy at low price

ü   Easily accessible infrastructure like sea road, railroad, river and air communication

ü  Moderately open Economy, particularly in the Export Promotion Zones

ü   GSP under EBA (Everything But Arms) for Least Developed Country applicable

ü   Improved GSP advantages under Regional Cumulative

ü   Looking forward to Duty Free Excess

ü   Investment assured under Foreign Private Investment (Promotion and Protection) Act, 1980 which secures all foreign investments in Bangladesh

ü   insurance and finance agendas operable

ü   Bangladesh is a member of Multilateral Investment Guarantee Agency (MIGA) under which protection and safety measures are available

ü   Adjudication service of the International Centre for the Settlement of Investment Dispute (ICSID) offered

ü   Excellent Tele-communications network of E-mail, Internet, Fax, ISD, NWD & Cellular services

ü   Weakness of currency against dollar and the condition will persist to help exporters

ü   Bank interest@ 7% for financing exports

ü   Convenience of duty free custom bonded w/house

ü   Readiness of new units to enhance systems and create infrastructure accordant with product growth and fast reactions to circumstance

Weakness.

• Lack of marketing tactics
• The country is deficient in creativity
• Absence of easily on-hand middle management
•  A small number of manufacturing methods
•  Low acquiescence: there is an international pressure group to compel the local producers and the government to implement social acquiescence.
•  M/c advancement is necessary. The machinery required to assess add on a garment or increase competence are missing in most industries.
•  Lack of training organizations for industrial workers, supervisors and managers.
•  Autocratic approach of nearly all the investors
• Sluggish backward or forward blending procedure
•  Incompetent ports, entry/exit complicated and loading/unloading takes much time
•  Speed money culture
•  Time-consuming custom clearance
•  Unreliable dependability regarding Delivery/QA/Product knowledge
•  Communication gap created by incomplete knowledge of English
•  Subject to natural calamities

Opportunity

• Bangladesh is included in the Least Developed Countries with which US is committed to enhance export trade
• Footwear are very economical even with china and is the prospect for Bangladesh
• If skilled technicians are available to instruct, prearranged garment is an option because labour and energy cost are inexpensive.

Threat

v       The exporters have to prepare themselves to harvest the advantages offered by the opportunities.

 6. Export Related Information:

Letter of Credit (LC)

• Letter of credit (LC) is a financial instrument opened by importer.
• LC can be opened in favor of exporter. It gives assurance that the importer is solvent.
• Most of the LC is irrevocable. An irrevocable LC means that once the  exporter has  accepted the credit, the buyer cannot alter it without any permission of exporter.

a)         Must be a client/account holder.

b)         Request letter from the client to open L/C.

c)         Original IRC (Import Registration Certificate) duly renewed up to current date should also be produced to the bank for verification and return.

d)         Valid Membership Certificate from a registered Chamber of Commerce and Industries/Trade Association. .

e)        Trade License.

f)         Income Tax declaration in triplicate/TIN Certificate.

g)         INDENT issued by the local indenting agent or PROFORMA INVOICE issued by the foreign supplier/contract/purchase order/sale order (duly accepted by the importer).

h)        Fixing up of margin of L/C on mutual basis.

a)         Documentary Credit Application (supplied by the Bank –duly filled in by the importer or his authorized Agent. This application is an agreement between the importer and the Bank. This form is to be affixed with Tk. 150/- adhesive stamp.

b)        Insurance Cover Note (Marine/Air/Post) in favor of the bank.

c)     One set of IMP Form (4 copies) duly signed by the importer. 3 (three) copies are to be left blank and are to be filled in after the documents arrive from the negotiating bank. The remaining one copy is kept for bill of entry purpose, which is signed by the bank for submission to Bangladesh Bank along with the monthly return for sale of foreign exchange for the import covered under the L/C.

d)         Undertaking for fluctuation of foreign currency duly signed.

e)         LC Authorization Form in lieu of import license duly signed by the importer and permission from Bangladesh Bank (may be taken by the client and/or by the Bank on behalf of the importer.

Terms of LC

C.I.F (Cost, Insurance and freight):

• Charge by the exporter- the goods, transportation, insurance, miscellaneous etc.
• Must mention a delivery point up to where the exporter will bear the cost of freight.

C.F (Cost and Freight)

• The exporter quotes a price including the cost of goods and transportation.
• The insurance cost by importer.
• Importer knows such insurance company who offer lower insurance price.

F.O.B (Free on Board)

• F.O.B means exporter will take the responsibility up to the goods are loaded on the ship
• Importer has own transportation
• Ship company is well known to importer

Commercial invoice:

Commercial invoice is the final bill that allows the importer about how to pay to exporter. Commercial invoice is needed customs to impose tax.

Bill of lading:

A bill of lading is a documents issued by the ship-owner or by the master or captain of the ship or other agent in exchange of mate’s Receipt after the goods have been placed on the board the ship for being carried to a specific destination. It is used when the goods shipped from only a part of the cargo of a ‘general ship’

A bills of lading must be stamped and signed by the ship-owner or his agent, the master or captain of the ship

Backward Integration:

Customers are another potential source of competition.  For reducing the production cost manufacturer make linkage or own the source of raw materials. Those linkages are called backward linkage or backward integration.

Labor-Capital relationship:

In countries where there is little capital available for investment and where the amount of investment per worker is low, manager might expect to find cheap labor rate and export competitiveness in product that require  large amount of labor relative to capital.

7. Finding:

7.1 Footwear World Market and Bangladesh:

Bangladesh now exports Footwear to about 25 countries around the world; the Japan is the single largest importer of its Footwear products, amounting to 21 percent of total Footwear exports. Bangladesh is the second-largest supplier of Footwear in the Japan market. Over the past few years, Bangladesh’s Footwear exports to the Japan, Korea, and Italy have expanded rapidly. From the immemorial, the art and craft of Bangladesh is closely liked to our culture and heritage. Footwear has been part of the heritage. The footwear sector has been prioritized in the export policy with emphasis on exporting high quality footwear. By combination the latest development in the footwear technology with abundant raw materials and inexpensive skilled labour, footwear are now playing an important role in the earning foreign exchange fo the country. Bangladesh is capable of producing about 180 million pair of footwear annually. Recently footwear has been indeed made great strides. There are 75 large scale modern shoes factories engaged in the high quality footwear with 2500 smaller footwear units spread all over the country. At present exported to about 53 countries. The major importing countries are: Japan, Italy, Germany, Singapore, Korea China UK, France, Belgium, Sweden, Spain, the Netherlands, Saudi Arab, Taiwan, Hongkong, Canada, south Africa, Thailand, Poland, Malaysia, Norway and the USA etc. export earning from this sector during 2003-2004 was US$230 ml .

7.2 Why buyer come here:

The principal static comparative advantage that Bangladesh enjoys over potential competitors is its cheap labor force. The wage level in the footwear industry is low both for males and females, compared with workers in a similar category in other sectors. For instance, a comparison on the basis of wage data provided by Bangladesh Bureau of Statistics shows that the average monthly wage of skilled footwear is 1.4 to 2 times lower than that of similar factory workers in the textile and other sectors.

Table 7.2.1: Labor costs in selected countries (in US $/hour)

Countries                                2004                                        2005

Bangladesh                            0.12                                         0.16

India                                            0.25                                        0.27

Pakistan                                   0.24                                         0.27

Sri Lanka                               0.39                                         0.35

China                                          0.24                                        0.25

Indonesia                                  0.18                                         0.28

Thailand                                   0.59                                         0.71

Italy                                                13.5                                        NA

UK                                                   7.99                                        NA

US                                                6.77                                         NA

7. 3 PRODUCTION PROCESS

Buying house:

Buying house is the middle man between the buyer and footwear factory. It is quite difficult to arrange buyer for footwear because most of the buyer come from foreign. And footwear website is not that much effective that’s why a class of broker grow in this gap between buyer and the manufacturer. As they always maintain correspondence with the buyer they have better understanding of buyers requirement. They act as a helping hand for us.

BUYERS ORDER

At first buyer request sample from the garments factory with all the necessary information regarding to their product and then we match our capability with the buyer’s requirement. If capability matched then we submitted a fare costing of that product to the buyer.

7.4  Some necessary definition which need to know:

Antiqued: Leather that is dyed with one color over another (usually darker over lighter) so as to create rich highlights and an artificial aged appearance. Also called distressed leather.

Buffed Leather: Leather from which the top surface has been removed by abrasion. Often known as suede or nubuc.

Corrected Grain: Leather that has been buffed to remove blemishes, then covered with a new, artificial grain created using pigments and other finishes.

Crocking: Removing the crock, or excess coloring, that rubs off of a newly-dyed hide.

Crust: Leather which has been tanned (treated to become nonperishable) but not colored or otherwise finished.

Distressed: Another term for antiqued leather.

Drum Dying: The process of coloring leather by tumbling it in a rotating drum immersed in dye. A very effective method allowing maximum dye penetration.

Embossed Leather: Leather that has been “stamped” with a design or artificial texture under very high pressure. Used, for example, to create imitation alligator hide.

Finish: Any enhancing effect applied to leather after it has been tanned. Examples are dyeing, embossing, buffing, antiquing, waxing, waterproofing, and so on.

Full Grain Leather: Leather which has not been altered beyond hair removal. Full grain leather is the most genuine type of leather, as it retains all of the original texture and markings of the original hide.

Glazed Leather: Aniline-dyed leather which has been polished to a high luster by passing through glass or steel rollers under great pressure.

Glove Leather: Lambskin or other very soft leather typically used for gloves.

Grain: A word used to describe the natural characteristics of an unprocessed hide, such as its pores, wrinkles, markings, and texture.

Hand: A word used to describe the feel (i.e. softness or fullness) of leather, typically upholstery leather.

Nap: Describes the soft, “fuzzy” effect achieved in leather by buffing or brushing.

Natural Grain: A leather that displays its original grain.

Nubuc: A leather whose surface has been buffed and brushed to create a soft, velvety effect. Differs from suede in that while suede is created from the flesh (inner) side of a hide, nubuc is created using the grain (outer) side, giving it added strength and durability.

Oil Tanned: Leather that is tanned using oils to create a very soft, pliable finish.

Patina: The aura or luster that develops in a quality piece of leather with age.

Perforated: Leather in which a pattern of small holes is stamped using a die.

Pigmented Leather: Leather that has been coated with a flat surface color on top of or instead of the usual dye finish. Leather is usually pigmented to add durability and hide natural blemishes.

Plating: The process of pressing leather under a heated plate. Often used in upholstery leather to mask imperfections.

Pull-up: Describes the behavior of leather that has been treated with oils, waxes, and dyes in such a way that when the leather is pulled or stretched (i.e. on upholstery), the finish becomes lighter in the stretched areas. Considered a mark of high quality.

Retan: A second finish added over an underlying tannage.

Sauvage: A coloring effect created by blending two similar dyes to create a mottled or marbled appearance.

Semi-Aniline: Aniline leather to which a matching pigment layer is added to even out the color and add protection.

Side Leather: Leather made from one half, or “side”, of a full hide. Typically refers to leather whose top grain (outermost layer) has been left intact.

Split Leather: Leather made from the lower (inner or flesh side) layers of a hide that have been split away from the upper, or grain, layers. Split leather is more fragile than side leather or full-grain leather, and is typically used in the form of suede.

Suede: Split leather that has been buffed and brushed to create a fuzzy surface feel.

Top Grain: Leather whose top (outermost) layers have been left intact, in contrast to split leather.

Two-tone: An effect created by applying layers of similar or contrasting dyes to a piece of leather in order to create a mottled or aged appearance. Antiqued and Sauvaged leathers are examples of two-tone leathers.

Upholstery Leather: Leather created from a whole hide and intended for use in furniture, automobiles, airplanes, and other upholstery applications.

Vegetable Tanning: A method of hide tanning which utilizes materials from organic materials such as bark instead of the traditional chemicals. Vegetable tanned leather has greater body and firmness than traditionally-tanned leather.

Weight: A term which describes the heaviness or thickness of leather. Typically given in ounces per square foot or millimeters (thickness).

Whole Hide: Refers to leather created using a full hide, as opposed to a side, and typically intended for use as upholstery leather.

v Air Blowing Injection Molding Machine(slipper machine, footwear machine, pvc slipper machine)

Air Blowing Injection Molding Machine(slipper machine, footwear machine, pvc slipper machine) is specially applied to manufacture single color sports shoes, leisure shoes, slippers and sandals for both male and female with PVC. Its features are as follows:

1. Full computer control, humanized man-machine interface, and easy operation;

2. Compared with the same kind of equipments, it saves energy and increases efficiency.

3. Compared with the same kind of equipments; it has larger injection capacity and clamping force.

4. The rotation of workstation is characterized by continuously variable speed, lower noise and steady.

5. Preparing device and injection device are controlled proportionally, besides, the speed, material capacity and pressure are adjustable, which ensures the quality of products.

6. People are free to choose work stations according to different requirements of production.

Technical Parameters

Pic: Air Blowing Injection Molding Machine(slipper machine, footwear machine, pvc slipper machine)

Shoe Machine(eva slipper machine)

Shoe machine is suitable for EVA new material and uses air-foaming measure. Pre-moulding quantitative nose is innovatively desig

shoes machine(sandal machine,slipper machine)

The shoes machine applies to manufacturing single color,double color and three-color upper with PVC materials

Shoe Machine(eva slipper machine)

Shoe machine is suitable for EVA new material and uses air-foaming measure. Pre-moulding quantitative nose is innovatively desig

EVA SHOE MACHINE

eva slipper machine is suitable for EVA double colour foaming & molding.It has high quality and advanced technology.

Min. Order: 1 Set/Sets

Shoes Machine,Shoe Making Machinery

It specializes in producing hard & soft TPR, TPU and PVC syntactic rubber, styropor materials for soles,slippers and sandals

v  RZCAM-1512A Cutting Machinery

v  RZCAM-1812A Computerized Cutting Machine

Footwear workers make shoes, boots and sandals using hand and machine tools.

Footwear workers may perform the following tasks:

• designing footwear patterns
• making and grading patterns using manual or computerized methods
• clicking synthetics, correcting grains, leather linings and leather outers
• cleaning and finishing shoes
• altering or repairing footwear
• supplying ready-made or therapeutic footwear.

Specializations:

The footwear industry has become more mechanized and raw material passes through many stages before the finished article is produced. Different sets of specialized skills are required for each stage of production. With experience and sometimes further training, it is possible to progress to technical or supervisory levels. Footwear workers perform a variety of tasks depending on their area of specialization.

Clicker

A clicker cuts pieces of leather or other material from patterns to form the upper parts of a shoe using a clicking press. Materials may be cut by hand in small factories.

Footwear Finisher

A footwear finisher trims, inks, polishes, sands and applies the maker’s name.

Footwear Machinist

A footwear machinist uses various machines to stitch the upper parts of shoes and may decorate with stitching or punched holes.

Footwear Maker

A footwear maker assembles all types of footwear either by hand or machine. Uppers are attached to soles and heels by nailing, tacking, stitching, gluing or injection moulding.

Pattern Maker

A pattern maker designs and cuts a heavy paper pattern for a sample model shoe by hand or computer. From the master pattern multiple copies are made to produce a range of shoes in different sizes and colors.

Stuff cutter

A stuff cutter cuts the bottom sections of the shoes which include the soles, heels and insoles using a clicking press.

Table worker

A table worker prepares the uppers for the machinist to sew together and clean, polish and pack the completed item of footwear.

Personal Requirements:

• enjoy practical and manual activities
• good with your hands
• able to perform precise and detailed work
• good eyesight
• Normal color vision.

Related Jobs:

• Process Worker
• Shoe Repairer

8.Recommendation

After evaluating progressive footwear Ltd we saw that they have some Weakness.

•  It is true that their quality is still the best and their price is very low but some of their product get high price which are more comfortable than other. If they decrease that particular product price then sell of that product will increase.
• There is no facility to buy their product on Internet.
•  Their product are demandable for village people because it is more comfortable and long lasting and low price but it is not available in village area. So. It creates problem.
• There is little design for ladies.
• The marking  theory should apply in proper way
• Training should arrange for making the skill labor.

Conclusion:  

Footwear industry is controlled by the transfer of production. The globalization of garment production started earlier and has expanded more than that of any other factory. The global economy is now controlled by the transfer of production where firms of developed countries swing their attention to developing countries. The footwear industry of Bangladesh has been one of the key export divisions and a source of foreign exchange for the last few years. Many people have earned their livelihood through this industry. Their may be gender discrimination, low wage level exist in the footwear industry, but still, they supply  employment for all of theses people who come here to live. In Bangladesh, the footwear industry has emerged as a major economic sector and has had its impact on the financial services sector, communications, transportation, and on other related industries. The footwear industry has had a major social impact.. 

Each business unit is entrepreneurial in nature, and can quickly adapt to changes in the marketplace and seize potential growth opportunities. The main objective of this project was to find-out the proper utilization of four marketing mixes how a company perform with the help of its marketing mixes. After evaluating all the information of the Progressive Footwear Ltd we said that, ” Marketing mixes plays an important role in company”. The proper utilization of marketing mixes may help to derive enough benefits since in Bangladesh it’s tough to drive expected benefits. We found that in order to bring expected benefit Progressive Footwear Ltd follows marketing mixes that mean the 4Ps quite promptly. Lastly we want so say that, the information’s we have given in this, which we were collected from internet, the Progressive Footwear Ltd, gives a complete idea about how a company uses marketing mixes. Proper utilization of marketing mixes helps the company to grow more.

REFERENCES

1. Ahammed, Faisal. (2007). Export Import Management. 10-13,18,19.
2. Aaker, David A. (2001). Strategic Market Management, 6^th Ed.,62.
3. Daniels, Jhon D. and Radebaugh,Lee H. and Sullivan, Daniel P. (2004). “International Business” 10^th Ed.153.
4.  prepared by Pigato Miria et.al.), The IBRD/ World Bank, Washington, D.C.

Economic and Social Challenges of Globalization, University Press Ltd., Dhaka (200

1. Trade Secrets, The Export Answer Book For Small And Medium Size Exporters.
2. www.bangla.net/dcci
3. www.dhakachamber.org
4. http://EzineArticles.com/?expert=Gaurav_Doshi
5. www. fashion.com/industry-article
6. www.bdtradeinfo.com/yellowpages/des_data.asp?page=3&subcategory_id=420 – 115k
7. 11.  www. Epb.gov.bd
8. 12.  www. Yahoo.com
9. 13.  www. Google.com
10. 14.  www.leathermarg.com