A Report On:

“Corporate Strategy of Apex

Adelchi Footwear.”

SUBJECT: STRATEGIC MARKETING MANAGEMENT

Submitted to:
Dr. Razia
Department of Marketing
Business Studies Faculty (EMBA)
University of Dhaka

Submitted by:
Abu Naquib Mohammad Ali(40916061)
Fall Semester -2010
Department of Marketing
Business Studies Faculty (EMBA)
University of Dhaka

Date of submission: December 1, 2010

1.1 General Information about Apex Adelchi Footwear:
Apex Footwear Limited was established on January 04, 1990 by Mr Syed
Manzur Elahi. –first entrepreneur from a family of lawyers in Calcutta in 1998.
This company changed its name to Apex Adelchi Footwear Limited : December
27, 2006 as it merged with La Nuova Adelchi, one of the largest footwear
manufacturers of Italy. Apex Adelchi Footwear Limited is one of the most
successful and 2nd largest footwear industry in Bangladesh. It has a production of
more of more than 20000 pair of shoes per day, which is the highest among
Bangladeshi footwear industry. Only Bata shoe Factory which is a multinational
company has more production than them.

Apex Adelchi Footwear Limited. is a leading manufacturer and exporter of leather

footwear from Bangladesh to major shoe retailers in Western Europe, North
America and Japan. The company has revenues of USD 42 million in 2006.
AAFL pioneered the export of value added finished products export in the leather
sector of Bangladesh and is also involved in the local footwear retail business
with the second largest shoe retail network in the country. AAFL has equity ,
technical and marketing participation from La Nuova Adelchi one of the largest
footwear manufacturers of Italy. Public listed and traded since 1993, AAFL is
professionally managed, currently employs 3944 persons and is in full
compliance with Corporate Governance Compliance Report under Section 2CC
of the Securities Exchange Commission Notification Order
1.2 Objective of Apex Adelchi Footwear Limited:
The Apex Adelchi Footwear Limited is an automated footwear company
established under the companies Act 1956 and incorporated as a Public Limited
Company under the companies Act 1994 in Bangladesh with the primary
objective to carry on all kind of footwear business in and outside Bangladesh. Its
objective is to touch a production of 15000 pair per day within 2010.

VISION

“Honest Growth”

AAFL dreams to become the company of choice of the general public that
includes both the customer in home and abroad. They want to build such an
image that whenever people will think of a footwear company, they will think of
Apex Adelchi Footwear Limited. AAFL have created a cadre of young
professionals (YP) in its organization. This has helped boosting productivity in the
bank.
MISSION

Sustainable Growth

Vandor of Choice
Creating value for our shareholders
Proactive compliance
Corporate Social Responsibility

VALUES

Respect for people

- Demonstrate respect by developing our people and helping them to achieve
high performance standards.
- Treat all people with dignity
Integrity
- Honesty
- Walk the talk
Sense of Urgency
- Strive for speed and simplicity in everything we do.
Empowerment
- Encourage and reward self-confidence and initiative
- Require accountability
Courage
- Face reality, make timely difficult decision
1.3. Strengths of AAFL:

Locally available international quality leather

Very competitive labor costs

GSP Form A allows preferential access to markets

Joint Venture with La Nuova Adelchi, Italy which synergizes Italian product development &
technology with BD manufacturing and material strengths.

Factory compliant with all local and industry standards ;audited and approved by Federated,
MMG and MGB

Able to source requisite materials duty free for re-export

1.4. Company Information:

Corporate Office:
House No. 06, Road No.137
Block. Sec. (D) Gulshan -1
Dhaka-1212. Bangladesh.
Ph: +88 02 8820300/8821591/8828258
Fax: +88 02 8813038
Email Corporate - info@apexadelchi.com
URL - www.apexadelchi.com

Production Factory:
Safipur, Kaliakoir.
Gazipur Industrial Area,
Kaliakoir, Gazipur
2. Strategic Situation Analysis:

Market Analysis:

Market for footwear sector of Bangladesh is growing very rapidly within the

country and overseas. The opportunity for exporting footwear items is growing

day by day. As we have very good quality leather and also the production cost is

minimum comparing to other countries. There is also large market in the country.

In upcoming days with development of economic condition of the people of

Bangladesh and abroad the demand of footwear will increase rapidly.

Apex adelchi initially targets the local market from their starting but now their

main target market is the foreign buyer. Apex is already second largest exporter

of footwear goods in Bangladesh. And the quantities of export become almost

double from Jun 2007 to June 2010. With this their sales in local market is

growing for almost 25%. And surely apex is now the biggest seller of footwear

among the Bangladeshi companies.

Segmentation:

Segmentation is one of the most important factors of strategic marketing. Market

segmentation is one of the steps that goes into defining and targeting specific

markets. It is the process of dividing a market into a distinct group of buyers that

require different products or marketing mixes. Markets can be segmented or

targeted using a variety of factor. The bases for segmenting consumer markets

include:

• Demographical bases (age, family size, life cycle, occupation)

• Geographical bases (states, regions, countries)

• Behavior bases (product knowledge, usage, attitudes, responses)

• Psychographic bases (lifestyle, values, personality)

The market in which Apex is doing its business is consumer market and Apex

mainly segments its market base on Geographic and Psychographic basis.

Geographic Segmentation:

Initially Apex Adelchi segments their market based on whole country but in

recent year they segmentation based on whole world and segment their

market in eight zones for footwear market.

They are:

1. North America

2. South America

3. Europe

4. Asia
5. Africa

6. Australia

7. Oceania and

8. Local market for Bangladesh

Fig.: Export Market for Apex Adelchi Footwear

Except local market in every other zone they manages other companies or

persons as their buyers who directly relates their experience and production

process with apex adelchi to be successful to attract the customer of that

zone. They work along with foreigners to achieve the target in different zone.

And for local market they segment their market in based on divisions we

have. In every division there are area managers to gain information and

developing market. Thus they can enhance their sales in low demand areas.
 Psychographic Segmentation:

For psychographic segmentation in foreign markets Apexn considers lifestyle

of the people. They are mainly target the working people of foreign. For this

Apex exporting mainly the cheaper price highly long-lasting shoes in foreign.

But in the local market they are mainly consider personality and values. They

are mainly target the high quality upper class and upper middle class

consumer who mainly try to show their personality and create some more

value to others. Apex’s brand image helps them to use this kinds of

segmentation.

Competitor Analysis:

For Apex Adelchi Footwear there are two types of competitors one type for

foreign market and other type for local market. In foreign markets their main

competitors are those company’s who exports footwear goods from Bangladesh

like Bata Shoe Company, Filanto Bangladesh and Jenny’s Shoes. And surely

Jenny’s Shoes is the biggest competitor for Asian market as they are now the

second largest footwear exporting Bangladeshi company.

In the local market there are many competitors for Apex. Not only the leather

shoe manufacturers but the shoe manufacturer of artificial leather is now the

biggest threat for Apex as Bata shoe now a days change certain percentage of

their production quantity from leather to artificial leather to win the low price

competition. Other than Jennys and Bay footwear are the main competitor of

Apex as well as Bata in local market.

 3. Target Markets:

Target market of Apex Adelchi Footwear are:

In Foreign market:

 Lower income people

 Working people

 Asian or Sub continental consumer who lives in foreign.

In local market:

 Upper class people

 Upper middle class

 Consumers who wants value and brand image.

Apex Adelchi Footwear are mainly target the high quality upper class and

upper middle class consumer who mainly try to show their personality and

create some more value to others. Apex’s brand image helps them to use this

kinds of segmentation.
4. Positioning Strategy:

Apex has been successful to create great response from the foreign customer

but using the thought shoes friendly for environment. They use almost all

material which are environment friendly. And in local market they use the thought

full leather. The customer accept the company as a local brand competing in

foreign country. Apex also makes its product available at nearest possible places

in each targeted areas of Bangladesh through Gallery Apex. New and new

galleries are open to reach more close to the customer. And apex also introduce

the longest warranty period for its products comparing to other competitor. This

strategy helps Apex more to grab more and more customers and maintaining a

good and friendly relation with its customers.

5. Marketing Mix Strategy:

a. Product Strategy:

Considering the demand of its target customers in foreign and local market Apex

is producing and marketing its product in different sizes and qualities. It produces

footwear goods for children, men and women. They almost produces 169

different models of shoes for the its foreign market. It produces almost same

number of models for the local market. But the materials for foreign and local

market varies as the price and quantity varies in different market.

Other than shoes and sandals Apex also produces socks, money bags, Belt and

other leather products goods for local market as by product of main product.

b. Price Strategy:

In order to survive in the foreign market for long time in 2007 Apex adopted

Penetrating-pricing strategy. They make their products price in lowest possible

price. And now in 2010 they Afford to hike their price as they can establigh

themselves as a quality company in foreign market but still it kepts its price

relatively lower than competitor.

In the local market they usually make high price goods comparable to our

market to retain their brand image.

c. Distribution Strategy:

For making the product available to its target customers Apex use its own

distribution channel. Apex generally use its own transport facilities for reaching
the product to its local galleries. It also use only its galleries to sell its product to

maintaining goodwill.

d. Promotion Strategy:

To promote its product to foreign market Apex participate in different fair world

wide. Its cost them huge amount. They also use very strong marketing team to

gain customers in different countries. For local market Apex also spend huge

amount for advertising in different medias as well as billboards. They also

sponsor different events through out the year for advertisement. And sometimes

they introduce discount program to retain customer.

6. Coordination with Other Departments:

Apex Adelchi ensure its all departments work together to achieve strategic fit.

Their marketing department maintain close coordination with different

departments for performing their task and producing their product properly.

7. Sales forecast

Apex is now selling 14000 pair of shoes daily in foreign market and 3500 of

shoes daily in local market. But considering the growing demand they targeted to

sell 16000 shoes daily to foreign and 4000 shoes daily to the local market within

next one year.

8. Implementation Plan:

To implement the target sell the company already enhance their production

capacity by adding another product line in their factory. The human power is also

increases. But they can try to increase their technology to enhance the

production.