Principles Of Managerial economicsThe objectives and strategy of a shoe industry in Pakistan (Bata) Presented to: Prof. Amna Majeed Presented by: Aima Masood MCOM Punjab College
Introduction:• What is shoe making?• Shoe making process
Shoe industry in PakistanHistory• During 1950’s some well-equipped vendors set up at Karachi, Gujrat and Lahore• During 60s and 70s more units were established at Hyderabad Kasur, Sialkot, Multan, Sahiwal and Gujranwala.• Pakistan’s footwear industry manufactures around 120 million pair annually for local consumption and it exports 2 million pair per annum roughly.
Shoe Firms in PakistanSome of shoe firms in Pakistan:• Bata.• Service• Hush Puppies• Starlet• Stylo• local and foreign companies
BataBackground:Bata Pakistan limited is one of the 65 companiesworking all over the world as shoe manufacturer. Itstarted its operation at Batapur in 1942. Bata Pakistanlimited having60:40% foreign and local shareholdingsrespectively. Bata equips with sophisticatedtechnological and business skills, provides directemployment to about 2,792 people. Bata Pakistan isproducing more than 14.0 million pairs of Rubber&Canvas, Leather and Plastic footwear annually in twoproduction units at Batapur and Maraka. Bata is sellingmore than 17.0 million pairs of Rubber, Leather andplastic footwear annually.
Bata• Bata is a name that needs no introduction, no doubt best Pakistani shoes brand, providing a huge designs.• currently operates in 60 countries across the world• Today, it has over 370 outlets in Pakistan
Popular Brands of Bata Shoes:• Bata Industrials• Bubble gummers• Baby Bubbles• Comfit• Eco Fit• Marie Claire• North star• Patapata• Power• Sandak• Sundrops• Weinbrenner
Objectives of Bata:• Marketing objectives• Overall Objectives• Strategic Objectives for Every Primary Objective
Strategies of Bata:• Sale strategy• Diversification strategy• Marketing strategy
SWOT AnalysisStrength:Brand ImageFor the entire familyFinancially StrongConveniently accessibleTargeting all income segmentsNationwide retail networkWeaknessesIn 2001, 5% decrease in net salesNo proper planning regarding AdvertisementNo variety in Fashionable shoes
SWOT AnalysisOpportunitiesE-CommerceEntering new segments of MarketsCapturing Market where no other potential competitor existsInnovative ProductsNew mediums for advertisementsThreatsCustomer DissatisfactionPrice wars with competitorsCompetitorsPolitical InstabilityChanging in consumer preferences
Recommendation• Focus on Product Development, Market Development and Strategies• Footwear industry is highly fashionable industry; hence Bata must improve the efficiency of product development in order to bring new design and style.• Should provide consistent quality service to its customers• Bata debt to equity ratio is 3.51, which means almost 75% are debts. Management should reduce its debts to reduce the financial charges• Internet is a broad medium so they should also improve e-business
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