1.

Introduction

Apex Adelchi Footwear Limited (AAFL), formerly Apex Footwear Limited is the leading
manufacturer and exporter of leather footwear from Bangladesh to major shoe retailers in
Europe, North America and Japan.
AAFL is also committed to the domestic footwear market and today has the fastest growing shoe
retail network in the country, trading as Apex. The local retail wing was established in 1997, with
the vision of presenting the Bangladeshi consumers with the opportunity to experience quality
leather footwear designed according to the latest market trends and technology from Europe. At
the same time its product range is tailored to deliver value for money for different price segments
in the local market.
The response from the local market has been phenomenal, and the company is proud to be able
to provide its consumers with a wider range of products than before. While the company has
earned its reputation predominantly through its mens shoes and sandals, it has recently expanded
its ladies and kids product range as well. Apex currently has more than 157 retail outlets
throughout the country in addition to over 351 authorized retail sales distributors (RSDs) to
ensure nationwide coverage of its footwear.
2.0

Company Profile

AAFL was incorporated on January 04, 1990. In the same year it went into commercial
production with an installed capacity of 1000 pairs per day and 350 employees. Today the
company is producing 20000 pairs of shoes per day, employing over 8000 people.
AAFL pioneered the export of value added finished products in the leather sector of Bangladesh
and today exports almost 4 million pairs of shoes to 127 footwear brands and retailers in 30
countries. AAFLs major customers include Gallus, ABC Mart and Macys in Germany, Japan and
USA with projected export revenues of 100 million US dollars for 2010.

Apex has recently launched the School Smart and Twinkler brands in its stores to cater to the
kids segment. The company is also in the process of launching a number of new brands tailored
specifically for the local market.
This company has emerged with the people, who are the guideline from the very beginning of
apex. Company profile and the corporate directory are given below.

Company Profile:

Name of the Company: Apex Adelchi Footwear Limited.

Date of Commencement of Business as Apex Footwear Limited: January 4 1990.
Name Change to Apex Adelchi Footwear Limited: December 27, 2006.
Type of Company: Public Limited Company

Board of Directors:

Mr. Syed Manzur Elahi Chairman

Mr. Syed Nasim Manzur - Managing Director
Mr. Syed Gias Hussain - Deputy Managing Director
Ms. Munize Manzur Khasru Director
Mr. Niaz Ahmed Choudhury Director
Mr. Adelchi Sergio Director
Mr. Samson H. Chowdhury - Independent Director

Management Team:

Mr. Syed Manzur Elahi Chairman

Mr. Adelchi Sergio President
Mr. Syed Nasim Manzur - Managing Director
Mr. Syed Gias Hussain - Deputy Managing Director
Mr. Abdul Momen Bhuiyan - Executive Director
Mr. AA Mosaddeque - Executive Director ( GAPX )
Mr. Syed Md. Mustaque - GM ( Factory )
Md. Mominul Ahsan - Head of HR
Mr. Atiqul Islam - GM ( Leather)

2.1 Vision
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HONEST GROWTH

2.2 Mission
Sustainable Growth
Vandor of Choice
Creating value for our shareholders
Proactive compliance
Corporate Social Responsibility

2.3 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

2.4 SWOT Analysis

Strengths: AAFL has advanced machines and skilled manpower which make it possible to
produce high quality footwear. As a SBU of Apex group, it also has good financial backup. As a
partner Company of Adelchi, Apex gets product designs from them which make it possible for
them to follow Italian fashion trend. They have renowned brand image in the footwear market.
Weakness: AAFLs product price is comparatively high. On the other hand, their ladies and
kids footwear brands are not that much strong. Furthermore, they have to depend on foreign
suppliers for raw materials and design support.
Opportunities: The quality of the leather available in Bangladesh is really very good.
Furthermore, here labor cost is low which makes it possible to produce the products more
cheaply. On the other hand, young generation is now more fashion oriented and brand conscious.
Threats: Consumers are now more prices sensitive day by day. Furthermore, most of the raw
materials are not locally available. Beside this, leather price is increasing day by day due to high
demand. Production is also hampering due to electricity crisis.

2.5 Operating functions of Gallery Apex:

Operating functions of Gallerie Apex (GAPX) is more effective according to the vision of this
company. Whole process of GAPX operates a functional team on the demand of whole
marketing process. These departments are shown as below:

Human Resource Division.

Product Development.
Marketing Department.
Sales Department.
MIS Department.
Merchandising Department.
Supply Chain Department.
Accounts Section

3.0 Industry Profile & competitors

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3.1 Associates Companies:

Apex Tannery Limited.

Adelchi Footwear Bangladesh Limited.
Apex Pharma Limited.
Grey Advertising Bangladesh Limited.
Quantum Marketing Research BD Limited.
Mutual Trust Bank limited.
Pioneer Insurance Company Limited.
Gallerie Apex

3.2 Competitors
3.2.1 Direct competitors
BATA
BAY Emporium

Jennys
Landmark
3.2.2 Indirect Competitors
Local Brands
Leather Factories

4.0 Segmentation, Targeting & positioning

4.1 Market Segmentation
Apex has introduced the segmentation of their products in three parts.

Men
Venturini
Apex men
Sprint
Women
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Kids

Moochi
Nino Rossi
Sandra Rosa
School Brands
Twinklers

Personal Characteristics
Age
Gender
Education

10-65(above)
Male, Female
Going to or went through
high school and college
education or going offices
Single, Married
Upper middles & upper class
Students,
professionals,

Marital status
Social class
Occupation

career people

Psychographics
Interest

Trusting

Opinions

product
Fresh opinion for further

Personality

usage
Independent,
friendly,

on

the

quality

extrovert,

expressive,

fun

loving, Innovators

Behavioral
Occasions

Every occasions

Benefits

Convenience,
feelings,

creating

positive
bond,

relationships.
Light to high Users

Usage rate

Geographical:
Region
City
Destiny
Climate

All
Concentrated in main cities
All areas
All
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4.2 Market Positioning

4.2.1 Differentiation Strategy:
We have surveyed the international market and our competitors through the internet. Although
there are many international competitors such as the Crocs Inc., the Nike, Addidas .But in
Bangladesh we are the first of it.
We provide the highest quality shoes in the best price compeering international competitors.

4.2.2 Companys Overall Positioning Strategy:

Our

companys

overall
positioning
strategy will be
More for the
same. We have surveyed the market to gain competitive advantage. We will charge about lesser

amount comparing what the competitors are charging but we will provide more (this is achieved
as cost of production in Bangladesh being less and we offer varieties).

4.3 Target Market

AAFL is targeting mainly the upper middle class and middle class people, who are very much
capable of paying thinking of the product quality, rather hen the price.

5.0 Marketing Mix (5Ps)

The major marketing management decision can be classified on one of following five
categories

Product

Price

Place

Promotion

People

5.1 Product
The product is the physical product or service offered to the costumer. In the case of physical
product, it also refers to any services or conveniences that are part of the offering. Product
decision includes aspects such as functions, appearance, packaging, service, warranty, etc.
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Apex Footwear:
KIDS
MEN
Women

5.2 Price
Pricing decision should take into account profit margins and the probable pricing response of
competitors. Pricing includes not only the list price, but also discounts, financing, and other
options such as leasing.

5.3 Place
Place decisions are those associated with channels of distribution that serve as the means for
getting the product to the target customers. The distribution system performs transactional,
logistical, and facilitating functions.

5.4 Promotion
As we are a new company exporting to a foreign market we do not need much of promotion. We
do not plan on massive promotion rather we would emphasis on creating brand/product
awareness through some promotional tools such as; advertising, direct marketing etc.
Through direct marketing and internet advertisement we will pursue our targeted business
customers to buy our products. Furthermore, we will constantly analyze the feedback we are
getting from our prospective customers.

5.5 People:

People are the most important element of any service or experience. Services tend to be
produced and consumed at the same moment, and aspects of the customer experience are altered
to meet the individual needs of the person consuming it.

5.6 Pricing Strategy

Market-skimming pricing
Setting a high price for new product to skim maximum revenues layer by layer from the
segments willing to pay the high price; the company makes fewer but more profitable sales
Cause: We are the first provider of shoes made from Crocodiles skin thats why we choose this
pricing strategy.

5.7 Steps of Developing Effective Communication

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Step 1: Target Audience:

Our target audiences are the business customers in Europe, Asia, Australia and other Western
countries using crocodile products (genetic). We will target them and use effective
communication method such as; major sales promotion tools and direct marketing.

Step 2: Communication Method:

As we are a new company entering a foreign market where business people are not aware of us
so, our first objective is to create brand awareness, spread knowledge and information about our
company. We will use the following communication methods:

Internet (website)
E-mail
Telephone

Step 3: Message Design:

Message Content: We will use specific logical details about our company, the number of
crocodile we have, their age, their size, the whole process of crocodile life cycle, everything we
are offering as well as our business plan. This information would be very helpful and essential
for the customers.

Step 4: Major Sales Promotion Tools:

Advertising Specialty: Our Company will give t-shirts, caps, mugs to the customers as per
complimentary basis to maintain good relationship with them.
Point of Purchase Promotion: As our company is export based our customers can access
our products through internet but we still would keep the option open for the buyers to visit our
firm which would act as a point of purchase where the crocodiles are bred.

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Step 5: Choosing Media:

We will use the internet media through which we will communicate with the customers. Through
direct communication using telephone, e-mail, fax etc. we will contact our carefully targeted
business customers. Our forms of direct marketing will be
a) Telephone Marketing: Telephone is one of our primary weapons in the marketing arsenal.
Through telephone we will contact our business customers and pursue them to buy our
products.
b) Direct E-mail Marketing: We will send our product offers, important announcements,
reminders etc. to our existing business customers through e-mail. Furthermore, we will also
send e-mail to inform about our company and products to our prospective customers.
c) Catalog Marketing: On our website we will provide our customers video, photographs
and electronic catalogs, through which they can select, order or contact us.

Step 6: Feedback:
After the implementation of the above steps we would do a survey, gather relevant data and
analyze the percentage of the target business customers among whom brand awareness have been
created. Furthermore, we will constantly monitor if we have positive feedback from our
prospective customers through website and e-mail.

6.0 Control and Measures

6.1 Market and Consumer research
Since the beginning of the retailing business, in 1990, AAFL received a remarkable response
from the local market which motivated the company to expand over the years. Today, the
company offers the local consumers of Bangladesh a much wider range of products than before.
Most of the products that are offered in the local market by AAFL are relatively different from
the ones that are exported, especially in terms of design and material.
The reason behind this is the different climate, culture and the demand of the consumers of local
and foreign markets. For example, AAFL exports products like ladies boots which are not
12

available in the local market because the boots do not complement with neither the clothes that
most of the ladies wear nor the culture of the country. So, AAFL offers ladies open sandal to
meet the demand of the local market which, on the other hand is not exported as it would not
satisfy the taste of foreign consumers. Thus, the product development unit of AAFL is
continuously working to develop products based on the needs and wants of the local consumers.

6.2Sales Force Control:

As a leading footwear company financial performance in 2012: 2012 was a very challenging
year for Apex Adelchi. On the export front, as the EU continued to muddle through the debt
crisis, demand for footwear fell by 9.17% in terms of pair age in 2012. The largest targeted
foreign market, EU and North America already had high level of footwear consumption per
capital especially at the medium to medium high price shoes. Consumer spending at this level is
very sensitive to the financial turmoil and consumer confidence. All these factors resulted in
declining shoes order in 2012. Apart from that increase of electricity cost by 68.07%, increase
of rent by 91.80% and 18.90% in financial cost has eroded the profitability potentials of Apex
Adelchi.
In local market, sales increased by 26.24% and steady growth of sales in pair age terms for last
five years in local market indicates that the company has been successfully building its brand
image in Bangladesh.
Though earnings from international market fell, top line earnings in 2012 cushioned by 24.45%
growth in sales volume in local market coupled with increase in average price of shoes.
7.0

Conclusion: Apex Footwear Ltd is leading edge Footwear Company in Bangladesh. It

is gradually expanding its asset base and able to proper utilize assets. No business stays at the
top if it doesnt maintain its performance. Thus it is very important to fulfill the demand of the
consumers through competitive advantage.
The trend is upward or downward or static. The ascertainment of trend helps us in making
estimates for the future. Thus we can say that there is lots of application of financial analysis in
the modern days of business. To assess any business condition financial analysis gives a clear
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financial picture of any business organization. This helps to evaluate the trend and condition of
organization.

References:
http://www.apexadelchi.com/gallerie_apex/
Internship Report on APEX- ASM Haidar
Annual Report of Apex Adelchi Footware Limited (2012)

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