Bata India Repositioning and Revitalisation


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Case presentation as part of a National Level Inter College B School competition. Time given 2 days. Brief to choose a brand for repositioning and answering questions like Why, How and What? Team Members : Ankit Ahuja, Anupam Gode, Rahil Mukesh

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Bata India Repositioning and Revitalisation

  1. 1. Round 2 Submission GuruMantra – SIBM Pune Ankit Ahuja – Anupam Gode – Rahil Mukesh
  2. 2. Brand Selection Brand Dimension • Narrowing Brand Awareness • Long History associated with Bata in India • Poor brand association Price Dimension • Low to moderate priced • Under advertised Sales Dimension • Increasing sales and declining Sales Velocity • More than 3000 Retail stores in India • Y-o-Y increase in profit • Loosing loyal Customer Base Technology & Investment Dimension • Product quality is compromised • Use of technology in creating a good website but with poor awareness level Symptoms of a Mature Brand As per Keller, mature brands are ideal candidates that have been out in the market for a number of years (at least 5 or 10) and have a certain level of awareness and image with its target market. Bata is one of those brands in the country that is getting lost in its own heritage and thus is an ideal candidate for Brand Revitalization. Bata fails to capture mind-share and heart share resulting in loosing traction in youth segment even after quality product line Swiss based Brand set up shop in India in late 1930’s Poor Brand Association & Resonance 13% Market share in spite of being the oldest player Lost identity – Still considered Indian and local in spite of being an international player Facing stiff competition in Indian markets by local and international players Have quality products but has failed to communicate and connect Brand Architecture has multiple under advertised sub-brands Why ?
  3. 3. Footwear Major Players in India Points of Parity & Points of Differentiation • Multiple sub brands and third party brands such as Hush Puppies • Product width across Men, Women, Kids as well as product line has Formals, Semi Formals, Sports and slippers • Multiple sub brands and brands such as Force 10 and Gliders • Product width across Men, Women, Kids as well as product line has Formals, Semi Formals, Sports and slippers offerings • Product Line across 3 segments with focus on Slippers and sports footwear • Old household name in India • Product Line across Men, Women, Kids as well as Formals, Semi Formals, Sports slippers • Multiple brands from various companies under one roof • All products sold under one umbrella brand • Product width also includes apparel and other sports accessories Differentiation • Oldest Shoe Brand in the country • Parent company is International (Swiss Based) • Value for Money • Positions itself as – Stylish Looks at very reasonable Price • Heavy focus on Brand Ambassadors – Salman Khan, Katrina Kaif and Akshay Kumar for 3 product • Latest entrant in the market, tie ups with multiple brands in both fashion as well as formal footwear • Pedigree focuses on sports brands • Sponsors of various sports teams across the globe
  4. 4. Brand Analysis One of the oldest shoe brands in India •Wide reach •Strong retail network •Trust and Loyalty factor •‘Value for money’ perception •Footwear for the entire family •Financially strong Brand has lost connect with the youth •Lack of a loyalty program •Sub-branding has not been effective •Absence of definite plan regarding advertisements and promotion Huge consumer base in India •Rise in disposable income •Consumer wants to buy multiple footwear as accessories and not just a necessity •Partnership with multi-brand and e-commerce players •New medium for advertisements •New market segments Changing consumer preferences •Entry of mass and niche foreign players •High level of awareness and expectations among consumers •Price wars •Online Players S W O T Analysis on the basis of GfK‟s Brand Potential Index Rational Facets - Good •Quality – Consumers don‟t doubt the quality •Brand Popularity – Brand Recall is very high •Acceptance of Premium Pricing – May be an issue as people associate Bata with value for money Emotional Facets – Below Average •Identification with Brand – Youth finds it difficult to connect •Empathy with Brand - Remains popular due to its rich legacy •Confidence in Brand – Missing, as the youth has not seen the brand at its peak •Brand Bonding – Missing, due to lack of visual imagery and advertising •Uniqueness – Has not tried to communicate any uniqueness Action-Oriented Facets - Average •Buying Interest – Varies on factors like value-for-money, good design, emotional connect •Willingness to Recommend – The average youth does not connect with the brand enough to recommend it 8 16 10 33 0 10 20 30 40 A fashion savvy brand that adopts latest trends with changing times My brand of slippers A one stop shop for my families footwear needs A footwear company that has traditional designs Bata to me is Known for traditional designs and not for one stop shop concept
  5. 5. Brand Analysis & Primary Research Attachment 17% Awareness 83% Trial 48% Recent Use 33% GfK Brand Engagement Funnel for Bata % % % Attraction Conversion (Acquisition) Loyalty (Retention) %of people knowing the brand and could consider it %of people considering the brand who use it %of people preferring the brand among those who use it 67(45 males & 22 females) respondents were surveyed in Delhi, Mumbai, Pune & Nagpur. 83% of this belonged to 18-33 age group. 45 33 15 17 18 0 10 20 30 40 50 To buy Ladies footwear To buy Kids To buy School Shoes To buy Formal Mens shoes To Men's Sandals and Slippers Reasons to go to Bata Store 34 3 7 33 0 50 Price Variety TrustLong Lasting Reasons to buy Bata 49 18 0 100 Yes No Is Bata an Indian Brand? Considered Indian Looses out to competitors on leveraging International touch Price & Long Lasting Not chosen for fashion. Not considered trendy at all Ladies is the key segment. Dr. Scholl is a popular category Though major revenues come from male segment but perception is for ladies. Hush Puppies Louis Philippe Franca Leone & Metro Lee Cooper & Red Tape Not a preferred brand when buying Men formal shoes As per the GfK Brand Engagement Funnel Only 17% of the consumers are attached to the Brand. This has lead us to believe that Brand Salience needs to be looked after. Appeal and connect is not with the consumers. Also missing is the a good loyalty program. Of the people surveyed 45% go to purchase footwear when their old shoes wears out and 53% go on account of a occasion/usage requirements. Bata Stores are looses out on store layout. There is a lack of in-store branding.
  6. 6. Insights • Customer Speak – ” I was not aware that Bata has such trendy shoes, I would reconsider Bata if only they advertised their products” – Vivek Singh, Module Lead at a leading IT firm in Pune • Company Speak – “ We don‟t believe in promotions in mass media, our network of stores act as billboards everywhere and people will come when they see an installation outside our store” – Store Manager, Bata Showroom at Aundh, Pune Key Observations • Planogram : In Store display of various shoes in a cluttered format. 3 pairs of shoes on display per shelf • In displaying there is no differentiation between sub-brands apart from the use of Brand logo • There is no customer experience that is offered in store • What is the one thing that you would like to change as a Store Manager – “Even if Aundh store sells more of Marie Claire and less of Rubber footwear for women, the company expects us to not to focus on Marie Claire and dumps more stocks” Primary Research 25 12 7 23 0 10 20 30 Bata is not fashionable There is no Brand Image Quality is substandard Too many products Why is Bata not your first choice 4 37 40 28 0 20 40 60 Fashionable Brand Tradition and Trust Value For Money Quality When I see Bata I Think of Primary Research shows that BATA is perceived to be VFM & a non- fashionable brand.
  7. 7. Masterbrand Positioning Tool For Bata Brand Promise To provide footwear for every member of the family for every phase of life Personality • Your personal footwear guru • Every Sale is a relationship • Versatility • Trust • Value for Money • International Pedigree Values Rallying Call A Shoe for every Occasion! Benefits • Wide Variety • Better Customer Experience • Quality footwear Brand Truths • To leverage on the core competency of extensive length of the product mix • To position Bata as a A shoe for every occasion • Differentiation factor from all competition is a one stop shop for all footwear needs • A fashionable value for money brand with prices that suit a range of customers Versatility Trust Value for Money Internatio nal Pedigree • Comfortable • Value for Money • Wide Variety • Oldest brand in India Core Insight A trusted leader in footwear that strives to evolve itself with changing times to offer a wide range of variety to customers Consumer Target • Young Working Professionals • Married couples that are influencers and opinion leaders Market Definition • Core: Footwear across categories • Stretch: Leather and Shoe accessories HumansideofBrand JobofBrand New Brand Positioning • Focus on a relationship of trust and versatility. • Every product line to be targeted towards a particular demographic of consumers • Bubblegummers and Angry Birds Range for children • Power for the atheletes • Moccasino for young working professionals • Marie Claire for the confident woman of 21st Century • Hush Puppies for the executive • Dr. Scholl for those who have foot problems
  8. 8. Go to Market Strategy What to Sell How to Sell Where to Sell Marketing Strategy Markets MarketSegments To provide footwear for every member of the family for each phase of life Power for the sports oriented Weinbrenner for the outdoor oriented Need Based Segmentation to be done on Lifestyle Every Sub Brand has a target Demographic of it’s own Bata to target Low to Middle Income groups and play on aspirational value Dr. Scholl for orthopedic problems Marie Claire for young women Channels • Exclusive & Franchisee Bata Showroom - 1250 • Sells in multi-brand retail stores • Look for partnership with Foreign multi brand retail stores such as Tesco leveraging the Swiss connect • Online on both Bata and other ecommerce websites such as Jabong and Flipkart • Give preference to hot-selling sub brands depending on the area Use of signage and hoardings outside store to draw customer inside Promote sub-brands in-store Create visual imagery associations for sub- brands Make effective use of shelf-space. Currently, a pair of shoes is displayed Remove the clutter Use Back-To-School like merchandising strategy Focus on occasions like beginning of school season in March, office joining season in June, wedding season in November HowtoSell ProductPortfolio Men’s Brands Women’s Brands Kid’s Brands
  9. 9. 5 Year plan
  10. 10. Proposed Revitalization Plan Expanding Brand Awareness & Usage Capture consumer mind share by positioning as one brand that takes care of all the footwear needs Improving Brand Image & Uniqueness of Brand Capturing lost customers by targeting youth that have lost with Bata as youth brand Identifying neglected segment of fast moving fashion segment Changing Brand Imagery by focus on new TVC, Brand Ambassadors, Digital, OOH Managing how existing users choose Bata Availability : Entering in Tier III Placements in Multi-brand shopping outlets, Airport Premium stores Focus on Online sales to reach out Tier III Brand Associations – Sports, Performance, Fashion, Comfort, Classy need to be established as compared to competition Communication of Trust and VFM Managing how consumers use Bata Sub Brands – Effective campaigns to promote sub-brands Trendy Usage – Coupled with wearable devices like Calorie Burner devices Product Offering New And Trendy designs – Zara approach of least possible time from design to shelf Imagery needs immediate attention as brand connect is dismal Promote Online Sales platform & focus on omni-channel retailing Sub-Brands needs separate campaigns Loyalty Program shall be incorporated on the lines of Tommy Hilfiger Loyalty Card and Shopper’s Stop First Citizen
  11. 11. IMC Strategy TVC Digital •Mobile •Website •Social •Newsletter OOH Print PR Promotion s & Events Loyalty Program In-Store IMC Media Mix “To provide footwear for each member of the family in every phase of life” • Social CRM to integrate all marketing efforts • Aim is to get more wallet share of the customers • Sub Brands needs better communications • Focus on linking lifestyle & phase of life with each sub-brand Level 1: Tactical Coordination and Marketing Communications Focus on Digital, TVC & OOH Level 2: Redefining the Scope of Marketing Communication Bringing the franchises, sales staff, suppliers in internal marketing Level 3: Application of Information Technology SCRM to focus on data driven performance marketing Level 4: Financial and Strategic Integration Realignment of corporate strategy basis the consequences of first three levels Schultz and Schultz IMC model
  12. 12. Farhan Akhtar •Suave, versatile, talented man who comes from a reputed and loved family. Trust association can be formed •Has done a variety of roles – young rockstar, athlete, average guy. Appeals to people of all ages. Also fits in with Bata‟s multiple footwear lines •Successful and critically acclaimed actor, director, musician – Achiever Priyanka Chopra •Successful Bollywood actress and now singer. Has done all kinds of roles – Fits in with Bata‟s multiple lines of footwear • Style icon – Appeal to the youth •Her close relationship with her father is often talked about – Family, Trust association Bata India FB Page •152k fans, 0.7% interacting fans, 93% service level, 2 posts a day, 4 hour response time •Good content is posted regularly and the fans are respected and replied to •More apps and contests should be run to increase interaction Bata India Twitter Page •Does not exist! •Competition has already forayed and is interacting heavily on Twitter •Bata Bangladesh has close to 1500 followers and posts regularly Online Store •Bata has a chic online store •Lacks a virtual size selector Bata India Instagram Account •Promote sub-brands through this channel •Post pictures and discuss fashion •Model on the lines of the MensFashion Instagram account The TV commercial should convey the pedigree of Bata – that it is a pioneer, trusted, multinational brand that has evolved with time to take care of the consumer‟s every need. As of today TVC is missing. Placements of ads during daily soaps and primetime shows like Big Boss & KBC Digital StrategyMedia Strategy Brand Ambassadors Loyalty Program Bata India should start a Loyalty program and will maintain CRM which shall not only act as a incentive program for new customers but will help Bata to retain the existing customers . Loyalty program shall help Bata to cross selling and gain bigger share of the wallet of the customer TV Advertising • Celebrate occasions online • Campaigns like First Day at Office & Back to School to Wedding Season • Fashion Mantra of the season • Have a Search Engine friendly Website • Invite people through Social Media for preview sales • Plan a free makeover sessions for Social Influencers
  13. 13. Media Strategy OOH Fashion Shows: Yearly Fashion shows on the lines of Blackberry Fashion Show to highlight the trendiness in the design and reconnect with the youth. Targeting inside branding space in Delhi Metro, Mumbai Locals, Kolkata Metro and Bangalore Volvo bus service. Delhi Metro & Mumbai Locals to be covered with Bata Branding. Advertisements in Ola cabs etc. In cab screens to target business travelers In-screens advertisements in Mumbai local buses. To connect with masses and to advertise sub- brands specially related to women In-screen OOH in cafes such as CCD and major mall foodcourts Airports OOH & Airport outlets specially at T3, T2 and Bangalore Airports Bata to place shoe shiners at all strategic locations like aisle of major office buildings, malls and five stars All escalators at major malls to bear Bata branding to remind the customers what they are wearing at all times.
  14. 14. Marketing ROI & Budgeting Emphasizes on TVC •75% including brand ambassadors OOH to deliver reachability •To include digital billboards, Airport placements Digital Media spends to increase yoy with spends getting diverted from TVC to Digital •To include website changes •To include mobile solution charges Loyalty Program & Spend on CRM IT to be 1% of the marketing Budget 11.9 1.02 2.04 0.51 0.34 0.340 2 4 6 8 10 12 14 TV ADS SOCIAL MEDIA & DIGITAL OOH MEDIA LOYALTY PROGRAM PUBLIC RELATIONS MARKET RESEARCH Total Budget per Year (in Cr) - 17 Cr TV Ads Social Media & Digital OOH Media Loyalty Program Public Relations Market Research 17 crores based on last year marketing budget of 15.6 crores – Annual Report Bata 2012 • Celebrity Endorsement cost of 7 Cr per year • Industry Average of T3 Delhi Airport eyeballs capture for 200 sqft is 3million eyeballs per month @ 12L pm • Current Ad to Sales Ratio of Bata India is 0.8% • Global Industry Average of Shoe Stores is 3% - • Advertising Elasticity for Shoes (Reebok, Nike, Skechers is .08-.1) • Taking the global benchmark ideally the Bata Ad spent should be 57 cr taking 2012 Sales • Taking the elasticity factor of 0.1 we get a 10% of ad budgets increase in sales
  15. 15. Thank You
  16. 16. Research Methodology & Design Research Methodology & Design In-Store Insights Missing Customer Education •No information communication to customer how sub brands differ •No information on marquee designs Lack of Sensory Branding •Lights are not product focused •No Imagery in the store near the shelves •Foul leather smell in the aisle •No music in the store to simulate any purchase activity Low Customer Service •Less sales staff in big stores •Sales staff is reactive not proactive In Store Communication •No information regarding store layout, required because of large & multi- level store size •Low on customer connect Unsatisfactory Designs •Imitation of latest fashion trends
  17. 17. Research Methodology & Design Research Methodology & Design In-Store Insights • „Online shoes in India‟ Avg Monthly Searches – 2.8L • „Bata India‟ Avg Monthly Searches – 19,290 • „Liberty India‟ Avg Monthly Searches – 14,800 Bata India is spending heavily on Facebook to connect with youth but because of its positioning and product line is loosing connect on the shop floor