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Content
SERIAL
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TOPICS PAGE
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1. INTRODUCTION
2. COMPANY PROFILE
3. OBJECTIVE
4. SCOPE
5. IMPORTANT
6. REVIEW OF LITRETU
7. RERESERCH MATHEDOLOGY
8. QUESTIONER
9. ANALYSIS
10. INTERPRITATION
11. FINDINGS
12 CONCLUSSION
13. SUGESSION
14. BIBLIOGRAPHY
INTRODUCTION
The main purpose of this project is to provide an approach for analyzing market
structure in terms of brand loyalty and brand awareness for the purchase of Bata
products. Ideally, your brand should be the first one that comes to your mind
within specific product categories and associated with key consumer benefits.
Consumers should be able to identify which products and services Bata brand
offers. They should also be able to identify which benefits are associated with the
brand. It is also useful to segment the market, based on brand loyalty and brand
awareness and to understand the needs of loyal customers and potential
awareness, aswell as their attitude towardskey brand attributes. The goal of this
project is to create awareness among the consumers that there are different
brandsin the productcategoriesin which the brand operates, and also to measure
the consumer's behavior of repeatedly purchasing a specific brand over a certain
period of time. It is also useful to segmentthe market, based on brand loyalty and
brand awareness and to understand the needs of loyal customers and potential
awareness, as well as their attitude towards key brand attributes. A person's
attitude toward a brand is relevant to the degree of their brand loyalty. Brand
awareness is linked to consumers brand preferences, that salient brands are high
in both intentions to buy the brand and brand loyalty. Itis a well known factthat a
distinctive brand identity is one of the most influential factors in determining how
consumers differentiate between similar products and services. Both tools are
separate in practice, but also used in combination with each other. It is the also
the key to attracting new customers and retaining existing customers. The intent
of this study is to provide insights of the needs of two groups of customers, repeat
buyers and operations of the brand, in order to help corporations develop
appropriate marketing strategies. This study was carried out in two stages: (1)
segmenting the market into the two consumer groups; and (2) analyzing the
differences of the two groups based on the key factors that affect consumption
behaviors.
1.2 OBJECTIVES OF THE STUDY:
īƒ˜ Primary objectives-
To measure the Brand awarenessand Brand loyalty of Bata India Limited,
Bangalore.
īƒ˜ ī€ Secondaryobjectives-
To find out the company’s position in the footwear industry in the market.
To find how much Bata brandsare awarein the market among the
consumers.
To find out the loyal customers of Bata.
To determine the factors which is affecting Bata’s promotional activities?
To find out drawbacksof Bata brand.
1.3 IMPORTANCE AND RELEVANCE OF THE PROJECT:
The two month project Training is very important for a student of MBA. This
type of study gives some practical knowledge to MBA students and practical
knowledge is more useful than theoretical knowledge for any one.
There is no certain formula for any particular problem but the aim of this
study is to develop the ability of decision – making. A right decision at the right
time itself helps an organization to run smoothly.
The training in any organization gives us an idea of different marketing
activities and many emphases is given on “Promotional Activities Aspect” and
also it is seen how business is taken tactfully when any problem comes to an
executive. The way of problem solving, right decision making and knowledge of
different types of marketing activities gives much importance to this study. Though
only in 2 months, it was not possible to understand it so deeply but overall ideas
would be developed.
The survey was conducted to Measure the Brand Awareness and Brand
Loyalty of Bata India Limited, Bangalore.
This study is done to find out how much Bata brand is aware in the market and
also to find loyal customers of Bata. Bata operates in many different economic and
cultural environments around the world, dictating very different types of
operations. Although Bata does not sell the same shoes nor does it have identical
stores in each country, customers will recognize common elements to the Bata
experience everywhere in the world.
The survey coversa wide range of activities and factors, which influence the many
customers to express their feelings about Bata brand. The samples of 60
respondents were taken to represent Bata brand, and the result was not in the
favor of Bata.
1.4 SCOPE OF THE STUDY:
This project is done to provide an approach for analyzing market structure in
terms of brand loyalty and brand awarenessfor the purchaseof Bata products.
Ideally, your brand should be the first one that comes to the mindswithin specific
product categories and associated with key consumer benefits. Consumersshould
be able to identify which products and services Bata brand offers. They should also
be able to identify which benefits are associated with the Bata brand.
The intent of this study is to provide insights of the needs of two groups of
customers, repeat buyers and operations of the brand, in order to help
corporations develop appropriatemarketing strategies.
This study was carried out in two stages:
(1) Segmenting themarket into the two consumer groups; and
(2) Analyzing the differences of the two groupsbased on the key factors thataffect
consumption behaviors.
The result of this study will help the Bata Companyto rectify their mistakes and to
come out with new plan and promotional activity which helps them to create a
good position in footwear industry again.
1.5 LIMITATIONS OF THE STUDY:
Although all efforts have been made to study all types of population as
compared to the topic of study, universe size and sample size, findings of the study
will be considered and will be applied in Bangalore, only because perception of
the customers varies in other place due to socio-economic and educational
background. At last but not the least the study will try to find out real depth of the
actual position of the brand.
A project is a work that an executive or the personnel does by their efforts in
research. There are many advantages that we can easily find and recommend in
the company but like all projects this project also have some limitations, such as:-
īƒŧ Personal interview: -It consists of few questions and answer session, so
most of the people avoid it and that’s why we get little wrong response in the
questionnaire.
īƒŧ Field survey:- This method is also a key factor, butgenerally to that place
where it has been done, becausethe result varies when we changethe area.
īƒŧ Questionnaire: - Because of the busy schedule and fast life of the
respondents, most of them do not give that is needed, so thataffects the result as
well as analysis.
īƒŧ Secondary sources:- Such as companydata makes in favor of the company,
so problem occurs.
īƒŧ Personal visitto the other footwear stores:- Thisis also a good technique,
but most of them don’t discloses their sale unitand turn over becauseof the
privacy.
It is very difficult to influence and get right answer from old mentality
customers. Therefore the result is applicable to Bangalore region only. These
findings may not have much relevance in other regions of different from rest of the
country.
All the conclusions suggestions & recommendations will be made in the feedback
obtained from the survey on the basis of responses given by the respondents.
2.1 INDUSTRY INTRODUCTION:
Indian leather industry is the core strength of the Indian footwear industry. It is the
engine of growth for the entire Indian leather industry and India is the second
largest global producer of footwear after China.
Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks,
Nike, Reebok, Ecco, Deichmann,Elefanten, St Michaels, Hasley, Salamander and
Colehaan are manufactured under license in India. Besides, many global retail
chains seeking quality products at competitive prices are actively sourcing
footwear from India.
While leather shoes and uppers are produced in medium to large-scale units, the
sandals and chappals are produced in the household and cottage sector. The
industry is poised for adopting the modern and state-of-the-art technology to suit
the exacting international requirements and standards. India produces more of
gent’s footwear while the world’s major production is in ladies footwear. In the
case of chapels and sandals, use of non-leather material is prevalent in the
domestic market.
Leather footwear exported from India are dress shoes, casuals, moccasins, sport
shoes, horrachies, sandals, ballerinas, boots. Non-leather footwear exported from
India is Shoes, Sandals and Chappals made of rubber, plastic, P.V.C. and other
materials. With changing lifestyles and increasing affluence, domestic demand for
footwear is projected to grow at a faster rate than has been seen. There are
already many new domestic brands of footwear and many foreign brands such as
Nike, Adidas, Puma, Reebok, Florsheim, Rockport, etc. have also been able to
enter the market.
The footwear sector has matured from the level of manualfootwear manufacturing
methods to automated footwear manufacturing systems. Many units are equipped
with In-house Design Studios incorporating state-of-the-art CAD systems having
3D Shoe Design packagesthat are intuitive and easy to use. Many Indian footwear
factories have also acquired the ISO 9000, ISO 14000 as well as the SA 8000
certifications. Excellent facilities for Physical and Chemical testing exist with the
laboratories having tie-ups with leading international agencies like SATRA, UK
and PFI, Germany.
One of the major factors for success in niche international fashion markets is the
ability to cater them with the latest designs, and in accordance with the latest
trends. India, has gained international prominence in the area of Colours &
Leather Texture forecasting through its outstanding success in MODEUROP.
Design and Retail information is regularly made available to footwear
manufacturersto help them suitably address the season's requirement. The Indian
Footwear Industry is gearing up to leverage its strengths towards maximizing
benefits.
Strength of India in the footwear sector originatesfrom its command on reliable
supply of resourcesin the form of raw hides and skins, quality finished leather,
large installed capacities for production of finished leather & footwear, large
human capitalwith expertise and technology base, skilled manpower and
relatively low cost labor, proven strength to produce footwear for globalbrand
leadersand acquired technology competence, particularly for mid and high priced
footwear segments. Resource strength of India in the form of materials and skilled
manpower isa comparative advantage for the country.
2.2 HISTORY OF BATA:
ī‚ˇ 1894-TheT.& A. Bata Shoe Companyis registered in Zelin, Czechoslovakia
by the siblings Thomas, Anna and Antonio Bata - the eighth generation of
shoe-making Batas.
ī‚ˇ 1895-Antonioleaves the Companyto join the army, his sister Anna follows
shortly after to get married. ThomasBata takes over the companyleadership
alone.
ī‚ˇ 1897-Thomasintroduces the “Batavia”, thefirst fabric shoe and with it
production mechanization.
ī‚ˇ 1905-Production reaches 2,200 pairsper day, produced by 250 employees.
Constantinnovation of footwear to meet customers’ needs. ThomasBata’s
motto is “Ourcustomer is our Master.”
ī‚ˇ 1909-Firstexport sales and first sales agencies in Germany, in the Balkans
and in the Middle East. Bata shoes are of excellent quality and are available
in more styles than had ever been offered before. Demand grows rapidly.
ī‚ˇ 1917-Salesreach 2 million pairs per year produced by 5000 employees.
Advanced production equipment is imported. As the Companyprospers so
do the communities where it operates. Bata creates stores, builds housing,
schools and hospitals nearfactories.
ī‚ˇ 1922-Followingthe First World War currencies are devalued and consumer
purchasing poweris at an all time low. Bata cuts shoe prices by 50%; stores
are flooded with customers forcing the industryto follow the lead.
ī‚ˇ 1925-The“Bata system” organizes operations in autonomousworkshops
with employee profit sharing introduced since 1923. Each onein the
companyis an entrepreneur. The Bata School of Work founded. It provides
rigorous education and practical training to future Bata managers.
ī‚ˇ 1929-Introduction of customs tariffs. Bata responds by building factories in
Swiss, Germany, England, France, Yugoslavia, Poland, Holland, theUSA
and India By the early 1930s, Bata is the world’s leading footwear exporter.
ī‚ˇ 1932-ThomasBata is killed in a planecrash on the way to visit a factory
underconstruction in Switzerland. Underthe leadership of ThomasBata's
uncle, Jan Bata, the companyintensifies diversification into the production
of tires, aircrafts, bicycles,
machineries. ThomasJ. Bata, the young son of ThomasBata, convenes the 1st
internationalcongress of young Bata people.
ī‚ˇ 1939-Bata operates63 companiesin various industries butfootwear
remains the core business with 60 million pairs sold per year in more than
30 countries.
ī‚ˇ 1940-Partof the Companymanagementunderthe leadership of ThomasJ.
Bata starts to operate from Bata, near Toronto, Canada.
ī‚ˇ 1945-AllBata companies in Eastern European countries are nationalized by
communist governments. The Companystarts rebuilding itself from the
remaining entities located outside Eastern Europe.
ī‚ˇ 1960-TheCompany’sheadquartersare officially relocated in Toronto under
the leadership of ThomasJ. Bata.
ī‚ˇ 1989-With thefall of Communism, ThomasBata is invited by the new
president, VaclavHavel, to return to the Czech Republicand receives a
hero's welcome.
A chain of shoe stores is opened with the headquarters in Zelin, and a small
shoemaking factory begins operations in Dolman Nancy.
ī‚ˇ 1990-Creativity, productinnovation and research for higher quality levels is
the core of Bata’s product development policy. The results are the
international high standard, Bata premium collection.
ī‚ˇ 1995-Partnership developsin Eastern Europe. Bata stores reopen in Russia,
Poland, Croatia and Slovenia.
ī‚ˇ 1999-To adjust to the market evolution Bata undertakes a major
reorientation from manufacturing to designing, marketing and distribution.
ī‚ˇ 2001-Thomas G. Bata, the founder’s grandson becomes the Group’s
Chairman. A new international structure is implemented around 4
meaningful business units (MBUs) to give more focus to the business and
gain synergies within each region, especially in sourcing and product
development.
ī‚ˇ 2002-As a part of re-inventing its core competencies, Bata shoe innovation
Centres open around the world to focus on the development of shoes with
exclusive comfort technology features and design.
ī‚ˇ 2004-New stepsinto China with the opening of the Bata procurement centre
in Guangzhou and a distribution partnership for the opening of Bata retail
stores.
ī‚ˇ 2006-Start of the 262 acre, Riverbank Township construction project to
modernize the Batanagar factory complex near Kolkata. It is expected to be
completed by 2011 with 2500 modern houses for employees, a large
hospital, a school, and IT Park, a hostel and residential along the riverside.
Launch of the branded business division to consolidate our existing
worldwide branded business activities into a leading industrial and
professional footwear company.
ī‚ˇ 2008-TheBata emerging markets unit was created in order to maximize the
synergies of all operations in Latin America, Africa, Asia and India
.
ī‚ˇ 2009-TheEuropean shoeinnovation centre (SICE) in Padova, Italy
launched this year. As well as conducting research into new innovations,
materials and design for our shoe technologies, SICE design and sources
top qualityproducts from the best worldwide suppliers for all our European
stores.
2.3 COMPANY PROFILE:
The companythatevolved into BATA SHOE ORGANIZATION was first registered
in the town of Zelin, Czheclovakia on August 24th 1894. Itwas found by THOMAS
BATA who was the grandfather of present president T.G.BATA.
Although the Bata name had been a part of that tradition for 8 generations,
spanningthree hundred years ThomasAntonius and Anna Bata wanted to improve
conditions for themselves and for shoemakers of the future. The credo “Our
Customer Our Master” served as the guiding principle for Bata Shoemaker and
employers.
The young company overcomes many difficulties. In order to meet growing
demands during the early years, new production machinery was found in other
countries and innovative shoe making techniques were devised skilful and
successful Bata employees. Bata’s reputation as innovative industry leader has
been maintained ever since. In every 1920’s Bata established new companies in
Poland, Denmark, Yugoslavia, Holland, UK and USA.
Bata is one of the world’swidest reaching companies, with operationsin 68
differentcountries. Bata companiesstrive to listen to the customersin their local
marketsand clearly identify their footwear needs, and then to provide products
that exceed their customers’ expectationsin terms of quality, style and value. Bata
operating companiesare groupedinto four businessunits based on similarities in
marketsand business issues. Each group benefitsfrom synergiesspecific to their
requirements, such asproductdevelopment, sourcing and marketing support.
Each business unit is entrepreneurialin nature, and can quickly adaptto changes
in the marketplace and seize potential growth opportunities.
2.3.1 OVERVIEW-
īļ Serves one million customers per day.
īļ Employs more than 40000 people.
īļ Operates 4600 retail stores.
īļ Managesa presence in over 50 countries.
īļ Runs40 production facilities across 26 countries.
īļ Serves 1lakh customers per day.
īļ Employs more than 8900 people.
īļ Operates 1100 retail stores.
īļ Runs5 production facilities across India.
īļ Network of 1600 retail stores.
Bata Shoe organization (B.S.O.) is the largest manufacturer and marketer of
footwear in the world. Its global business comprises of shoe factories, tanneries,
engineering plants, quality control laboratories, product development and
research 22 centers. Bata distributes its products through approximately 6,300
retail outlets, 10,000 franchises and thousands of wholesale depots and dealers.
More than 50,000 people are employed in producing and selling over 300 million
pairs of shoes each year, primarily for the domestic markets in which B.S.O
companies operate.
2.4 REVIEW OF LITERATURE:
Literature Review is the documentation of a comprehensive review of the published
and unpublished work from secondary sources of data in the areas of specific
interest to the researcher.
The main aim is to find out problems that are already investigated and those that
need further investigation It is an extensive survey of all available past studies
relevant to the field of investigation. It gives us knowledge about what others have
found out in the related field of study and how they have done so.
A successful brand is an identifiable product, service, person or place augmented
in such a way that the buyer or user perceives relevant, uniqueadded valueswhich
match their needs most closely. Furthermore, its success results from being able to
sustain these added values in the face of competition. Successful brands deliver
benefits to satisfy customer needs. These needs include rational needs (such as
features, packagesor the price of a brand) and emotional needs (such as prestige,
distinctiveness, style or the social reassurance of a brand). Brand loyalty
measurement has not flourished in the marketing literature. A person's attitude
toward a brand is relevant to the degree of their brand loyalty. Brand awareness is
linked to consumers brand preferences, that salient brands are high in both
intentions to buy the brand and brand loyalty. It is a well known fact that a
distinctive brand identity is one of the most influential factors in determining how
consumers differentiate between similar products and services.
2.5 MARKETING STRATEGIES:
īļ Market-scope strategy choices-
1. Single-MarketStrategy
2. Multi-market Strategy
3. Total-market Strategy
Among the three choices Bata has chosen and uses ‘Total-Market strategy’s they
serve all classes of people with their shoes ranging from 30/--2195/-. The specifics
of the strategy is provided below-
īļ Definition: Serving the overall market with one or some other kind of
offerings.
īļ Objective:To diversify the risk of serving only one market.
īļ Requirements:
1. Carefully selecting all the segments and providing offerings to all.
2. Avoid confrontation with companies serving the entire market.
īļ Expected Results:
1. Higher Sales.
2. Higher Market Share.
īļ Market-GeographyStrategy choices-
1. Local-Market Strategy
2. RegionalMarket Strategy
3. NationalMarket Strategy
4. InternationalMarket Strategy
Among the market-Geography Strategies Bata follows the 'National- Market
Strategy’ as they distribute their product to the whole of world using their own and
Danish's distribution channel.
īļ Definition: Operating nationally.
īļ Objective:To seek growth.
īļ Requirements:
1. Top managementcommitment.
2. CapitalResources.
3. Willingness to take risks.
īļ Expected Results:
1. Increased growth.
2. Increased market share.
3. Keep up with competitors
īļ Market-Entry Strategychoices:
1. First-In Strategy
2. Early-Entry Strategy
3. Laggard-EntryStrategy
Among the Market-Entry choices, Bata Bangladesh uses ‘First-In strategy’ which
is characterized by the following:
Definition:Entering market during the introduction stage. Two modes of entry are
feasible:
Conventionalmarketing strategy
Initiator- Entering market with unconventionalmarketing strategies
īļ Objectives: To understand themarket first and reap the profit at the
beginning andwaiting for the competitors and strike them with good
lowering price and improved quality. At the same time it offers variety of
products.
īļ Requirements:
1. Market research ability.
2. Production capability.
īļ Expected results:
1. Putting market on a new growth path.
2. Increased profits.
3. Some growth opportunities.
ī‚ˇ Product Strategy choices:
1. Product-Positioning Strategy
2. Product Repositioning Strategy
3. Product-Overlap Strategy
4. Product-Scope Strategy
5. Product-Design Strategy
6. Product-Elimination Strategy
7. New-ProductStrategy
8. Diversification Strategy
Among the product strategies Bata has used 'Product-Positioning Strategy' and
'Diversification Strategy' which is characterized by the following:
Product-Positioning Strategy:
ī‚ˇ Definition: Placing a brand in that part of the market where it will have a
favorable reception compared with competing brands.
ī‚ˇ Objectives:
Position product in market so thatit stands apartfrom competing brands.
To position the productso thatit tells customers whatyou stand for, whatyou are,
how you would like customers to evaluate you.
ī‚ˇ Requirements:
Use of marketing mix variables (design and communication efforts).
Successful managementof a single brand requires positioning the brand in the
market so that it can stand competition from the toughest rivals and maintaining its
uniqueposition by creating the aura of a distinctive product.
Successful managementof multiple brandsrequires careful positioning in the
market so that multiplebrandsdo not compete with nor cannibalizeeach other.
Thusit is important to be careful in segmenting the market and to position an
individualproductas uniquelysuited to a particularsegment through design and
promotion.
ī‚ˇ Expected Results:
Meet as much as possible the needs of specific segments of the market.
Limit sudden changein sales.
Make customers faithfulto the brands.
ī‚ˇ Distribution Strategy:
ī‚ˇ Definition: Developing unfamiliarproductsand markets through-
Concentric diversification (products introduced are related to existing ones
in term of marketing or technology),
Horizontal diversification (new products are unrelated to existing ones but
are sold to the same customers), and
Conglomerate diversification (products are entirely new).
ī‚ˇ Objectives: Diversification strategies response to the desire for-
Growth when current products/markets have reached maturity,
Stability by spreading the risks of fluctuations in earnings,
Security when the company mayfear backward integration from its major
customers, and
Credibility to have more weightin capital markets.
ī‚ˇ Requirements: In order to reduce the risk inherent in a diversification
strategy, a businessunit should-
Diversify activities only if current product/market opportunities are limited,
Have good knowledge of the area in which it diversifies,
Provide the products introduced with adequatesupport, and
Forecast the effects of diversification on existing lines of products.
ī‚ˇ Expected results:
Increase in sales.
Greater profitability and flexibility.
īļ Pricing Strategy choices For new products:
(1)Skimming Pricing
(2)Penetration Pricing
At times Bata Shoe Companyused 'Penetration Strategy' which is characterized by
the following:
ī‚ˇ Definition: Setting a relatively low price during the initial stages of a
products life.
ī‚ˇ Objectives: To discourage competition from entering market by quickly
taking large market share and by gaining cost advantagebyrealizing
economies of scale.
ī‚ˇ Requirements:
Products must appealto a market large enough to support the cost advantages.
Demand mustbe highly elastic in order for firm to guard its cost advantage.
ī‚ˇ Expected Results:
High sales volume and largemarket share.
Low margin on sales.
Lower unit costs relative to competition due to economies of scale.
3.1 BRAND LOYALTY:
Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or
otherwise continue using the brand and can be demonstrated by repeated buying of
a productor service or other positive behaviors such as word of mouth advocacy. It
is an extent of the faithfulness of consumers to a particular brand, expressed
through their repeat purchases, irrespective of the marketing pressure generated by
the competing brands.
A loyalty program should have a long enough timeframe to ensure its success.
When a brand launches a loyalty program, it is making a statement to its customers
that the relationship is valuable and that the brand appreciates it. Pulling back can
be seen as the brand telling its customers, “Nah, you’re not as important as we
thought.” Or even worse: “Hey we didn’t make enough money out of this so we’re
ditching you.”
True brand loyalty exists when customers have a high relative attitude toward the
brand which is then exhibited through repurchase behavior. This type of loyalty
can be a great asset to the firm: customers are willing to pay higher prices, they
may cost less to serve, and can bring new customers to the firm.
OVERALL
SERVICE
QUALITY
VALUE
FOR
MONEY
OVERALL
COMPANY
RATING
IMAGE
LOYALTY
CALL CENTER
3.1.1 IMPORTANCE OF BRAND LOYALTY-
There are three main reasons why brand loyalty is important:
īļ Higher SalesVolume – Theaverage United States Companyloses half of its
customers every five years, equating to a 13% annualloss of customers. This
statistic illustrates the challengescompanies face when trying to grow in
competitive environments. Achieving even 1% annual growth requires
increasing sales to customers, both existing and new, by 14%. Reducing
customer loss can dramatically improve business growth and brand loyalty,
which leads to consistent and even greater sales since the same brand is
purchased repeatedly.
īļ Premium PricingAbility – Studiesshow that as brand loyalty increases,
consumers are less sensitive to price changes. Generally, they are willing to
pay more for their preferred brand becausethey perceive some uniquevalue
in the brand thatother alternatives do not provide. Additionally, brand
loyalists buy less frequently on cents-off deals – these promotions only
subsidize planned purchases.
īļ Retain Rather than Seek – Brand loyalists are willing to search for their
favorite brand and areless sensitive to competitive promotions. The result is
lower costs for advertising, marketing and distribution. Specifically, it costs
four to six times as much to attract a new customer as it does to retain an
old one.
3.1.2 CREATING BRAND LOYALTY –
Favorable brand attitudes are the determinants of brand loyalty consumers must
like the product in order to develop loyalty to it. In order to convert occasional
purchasers into brand loyalists, habits must be reinforced. Consumers must be
reminded of the value of their purchase and encouraged to continue purchasing
the product in the future. To encourage repeat purchases, advertisement before
and after the sale is critical. In addition to creating awareness and promoting
initial purchases, advertising shapes and reinforces consumer attitudes so these
attitudes mature into beliefs, which need to be reinforced until they develop into
loyalty. For example, the most avid readers of a travel ad are those who just
returned from the destination. Ads reinforce a traveler’s perception and behavior.
Remember, it is easier to reinforce behaviors than to change them and the sale is
just the beginning of an opportunity to turn the purchaser into a loyalist.
A few more points to keep in mindâ€Ļ
īļ Develop an unbeatableproduct- if you wantto keep customers, make sure
they can get whatthey wantfrom your product.
īļ Givecustomers an incentiveto repeat purchase- chance to win a prize, gift
with a certain numberof proofs of purchase, in-packdiscount coupon, etc.
īļ Stand behind your product – if customers don’t trust the product, they
won’t purchaseit again.
īļ Know your trophy customers and treat them best of all – remember the rule
that 80% of sales will come from the top 20%of customers.
īļ Makeit easier to buyyour brand than competing brands – availability and
simplicity are keys in today’s high-speed world. Customers appreciate
convenience more than ever.
īļ Go to your customers - bring the productto customers when possible.
īļ Becomes a customer service champion – seek to serve the customer and
they will repeat purchaseâ€Ļ again and again!
3.1.3 BRAND LOYALTY TOWARDS BATA -
Bata, as a trusted footwear brand try to satisfy their customers by providing best
quality of products and services. There are many customers who are loyal to Bata
products and services because they always prefer Bata, and repurchase footwear
from them. Theimage of Bata in the Indian footwear industry is very high, so many
customers they don’t look after the price in case of Bata footwear as they have a
belief about their service quality. Bata delivers what they promise to their
customers so many customers they recommend their friends and relatives about
Bata products and services. This shows the loyalty of customers towards Bata
brand.
Bata believe that the cost of acquiring customers is six times that of retaining them
and, therefore, ensuring loyalty is commercially important. Loyal customers are
also importantbecause they provide the consistency of volume critical for mass
production not to mention the consistency of revenue required to run a business.
As a result Bata brandslook toward loyalty programsto reward loyal customers
and encourageretention.
3.1.4 BRAND LOYALTY STRATEGY OF BATA -
Bata has taken three forms:
īļ Creating customersatisfaction-Delivering superior qualityproducts and
services.
īļ Buildingbrand equity-Thesum of the intangibleassets of a brand. Factors
that contribute to this are: nameawareness, perceived quality, brand
loyalty, the associations consumers have towards the brand, trademarks,
packaging,and marketing channelpresence.
īļ Creating and maintainingrelationships-Success with any of these
strategies will result in high levels of repeat purchase, insulation from price
increases and improved responsiveness to marketing communicationsby
customers. There has been an evolution of marketing thoughtand activity
over this last decade. Initially, the quality movement placed customer
satisfaction as the ultimategoal of marketing programs. However, as
satisfied customers were shown to defect to other brandsor providers at
relatively high rates, strategists looked to creating a greater commitment
with the customer. Two ways to achieve this were to build brand equity
(primarily for consumer products) and to build relationships (primarily for
industrialproducts.) Brand equity used mass media advertising, corporate
citizenship and publicevents sponsorship to build a brand image.
Relationship marketing sought to build interdependencebetween partners
and relied on one-to-one communications, historically delivered through the
sales force. With the growth of marketing databasesand the Internet, the
ability to reach customers individuallybecame a viable strategy for a wide
rangeof firms including consumerproducts companies.
4.1 RESEARCH METHODOLOGY:
Research is an endeavour to discover answers to intellectual and practical
problems through the application of scientific method. Research is the systematic
process of collecting and analyzing information (data) in order to increase our
understanding of the phenomenon about which we are concerned or interested. It
is an extensive survey of all available past studies relevant to the field of
investigation. It gives us knowledge about what others have found out in the
related field of study and how they have done so. A research methodology is the
specification of methods and procedures for acquiring the information needed to
structure or to solve problems. It is the overall operational pattern or frame work
of the project that stipulates what information is to be collected from which
sources, and by what procedures. If it is a good design it will ensure that the
information obtained is relevant to the research problem and that it was collected
by objective and economical procedures. A research design might be described as
a series of advance decisions that, taken together, from a specific master plan of
model for the conduct of the investigation. Although research designs may be
classified by many criteria, the most useful one concerns the major purpose of the
investigation.
ī‚ˇ Type of research- Exploratory research or Formulative research.
The research hasbeen conducted within the data and information availableto gain
familiarity with the problem, to generate new ideas or to make a precise
formulation of the problem. The current scenario is observed and an attempthas
been done to relate the various variables.
The major purposes of exploratory studies are the identification of problems, the
more precise formulation of problems (Including the identification of relevant
variables), and the formulation of new alternative courses of action. An
exploratory study is often the first in the series of projects that culminatein one
concerned with the drawing of inferences that are used as the basis of management
action. Thatis, an exploratory study is often used as an introductory phaseof a
larger study and results are used in developing specific techniquesfor the larger
study. Secondarysources of information, as used in the section, are the rough
equivalentof the “Literature” on the subject.
4.2 RESEARCH DESIGN:
The research design states that the conceptual structure within which the study
should be conducted is descriptive in nature. The researcher used descriptive study
to describe the awareness of Bata among the consumers in market and to find loyal
customers of Bata and also to find out its demand, efficiency, brand image and its
features.
īƒŧ Sampling Unit- The sampling unit selected as respondents who are the
customers in the market buy footwear of Bata brand from different stores of
Bangalore
īƒŧ Sampling Size- The sample has taken as 80 for collecting accurate
information but received only 60 samples from the respondents, so 60 is the
sample size taken for measuring the awareness and loyalty of Bata brand.
4.3 LIMITATIONS:
īƒŧ Brand awarenessdimension was not found significantin the tested model.
īƒŧ Brand loyalty help the marketing researchers and marketing managersto
understand themarket.
īƒŧ These measures also help out to segment the market.
īƒŧ The measures help to know the consumption frequency.
īƒŧ Brand awarenessmeasures the accessibility of the brand in memory.
īƒŧ These measures help the Consumersrely only a few piece of information
with which they feel confident to help them decide how the brand might
perform.
īƒŧ It is a well known fact that a distinctive brand identity is one of the most
influentialfactors in determining how consumers differentiate between
similar products and services.
4.4 DATA COLLECTION:
īƒŧ The data collected are primary data among the various customers to find out
the level of awarenessand loyalty of Bata among different footwear, and its
demand based on prescription and its features in various angles.
īƒŧ Secondarydata was collected using internet and books.
īƒŧ METHODOF DATA COLLECTION:As survey is best suited for
descriptive research so the research conducted directly for individual
respondents through questionnairemethods. Theinterview is structured
where the questions asked in a sequence and prescribed manner. Therefore
the received data is about the respondent’s awareness of Bata and loyalty
towards Bata and there is lesser degree of inaccuracyin survey method.
4.5 SAMPLING DESIGN:
The below given questions about brand loyalty contains sampling:
1. Are you familiar about brand BATA how many times you purchase it?
2. Which footwear brand first comes to your mind when you think of India?
3. Which footwear brand do you use the most (tick 1)?
Khadims
Liberty
Bata
Shree Leathers
Elite
Action School time
Woodlands
Reebok
Nike
Adidas
Others
None of the above?
No specific brand?
4. Which brand do you think is the most popular footwear brand in India?
Liberty
Bata
Khadims
Shree Leathers
Elite
Woodlands
Reebok
Nike
Adidas
If none of the above please mention the Brand:--
5. Given below is a statement about the brand Bata. Express your opinion
about the same: “Bata isan Indian brand”
Agree
Disagree
I am not aware
6. Do you consider Bata to be a one stop family store?
Yes
No
7. Which brand do you recall by “SchoolShoes”?
Khadims
Liberty
Bata
Shree Leathers
Elite
8. Which of the above mentioned brand is, or has been your most preferable
brand of schoolshoes?
9. How many members in your family use BATA footwear?
None
Just Myself
Many
10.Rank the following footwear brands in order of preference on a scale of 1- 5
(1 low, 5 high)
BRANDS RANK
BATA
KHADIM’S
ELITE
SREE LEATHERS
LIBERTY
WOODLANDS
ADIDAS
REEBOK
NIKE
īƒŧ IEN
īļ JOURNAL AND MAGAZINES-
īƒŧ HE ECONOMICS TIMES
īƒŧ COMPANY JOURNALS
īƒŧ THE HINDU
īƒŧ THE TIMES OF INDIA
īļ WEBSITES-
īƒŧ www.bataindia.com
īƒŧ www.google.co.in
īƒŧ www.hindubusinessline.com
īƒŧ www.wikipedia.org

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a study on brand loyality towards bata india ltd

  • 1. Content SERIAL NUMBERS TOPICS PAGE NUMBERS 1. INTRODUCTION 2. COMPANY PROFILE 3. OBJECTIVE 4. SCOPE 5. IMPORTANT 6. REVIEW OF LITRETU 7. RERESERCH MATHEDOLOGY 8. QUESTIONER 9. ANALYSIS 10. INTERPRITATION 11. FINDINGS 12 CONCLUSSION
  • 3.
  • 4. INTRODUCTION The main purpose of this project is to provide an approach for analyzing market structure in terms of brand loyalty and brand awareness for the purchase of Bata products. Ideally, your brand should be the first one that comes to your mind within specific product categories and associated with key consumer benefits. Consumers should be able to identify which products and services Bata brand offers. They should also be able to identify which benefits are associated with the brand. It is also useful to segment the market, based on brand loyalty and brand awareness and to understand the needs of loyal customers and potential awareness, aswell as their attitude towardskey brand attributes. The goal of this project is to create awareness among the consumers that there are different brandsin the productcategoriesin which the brand operates, and also to measure the consumer's behavior of repeatedly purchasing a specific brand over a certain period of time. It is also useful to segmentthe market, based on brand loyalty and brand awareness and to understand the needs of loyal customers and potential awareness, as well as their attitude towards key brand attributes. A person's attitude toward a brand is relevant to the degree of their brand loyalty. Brand awareness is linked to consumers brand preferences, that salient brands are high in both intentions to buy the brand and brand loyalty. Itis a well known factthat a distinctive brand identity is one of the most influential factors in determining how consumers differentiate between similar products and services. Both tools are separate in practice, but also used in combination with each other. It is the also the key to attracting new customers and retaining existing customers. The intent of this study is to provide insights of the needs of two groups of customers, repeat buyers and operations of the brand, in order to help corporations develop appropriate marketing strategies. This study was carried out in two stages: (1) segmenting the market into the two consumer groups; and (2) analyzing the differences of the two groups based on the key factors that affect consumption behaviors.
  • 5. 1.2 OBJECTIVES OF THE STUDY: īƒ˜ Primary objectives- To measure the Brand awarenessand Brand loyalty of Bata India Limited, Bangalore. īƒ˜ ī€ Secondaryobjectives- To find out the company’s position in the footwear industry in the market. To find how much Bata brandsare awarein the market among the consumers. To find out the loyal customers of Bata. To determine the factors which is affecting Bata’s promotional activities? To find out drawbacksof Bata brand.
  • 6. 1.3 IMPORTANCE AND RELEVANCE OF THE PROJECT: The two month project Training is very important for a student of MBA. This type of study gives some practical knowledge to MBA students and practical knowledge is more useful than theoretical knowledge for any one. There is no certain formula for any particular problem but the aim of this study is to develop the ability of decision – making. A right decision at the right time itself helps an organization to run smoothly. The training in any organization gives us an idea of different marketing activities and many emphases is given on “Promotional Activities Aspect” and also it is seen how business is taken tactfully when any problem comes to an executive. The way of problem solving, right decision making and knowledge of different types of marketing activities gives much importance to this study. Though only in 2 months, it was not possible to understand it so deeply but overall ideas would be developed. The survey was conducted to Measure the Brand Awareness and Brand Loyalty of Bata India Limited, Bangalore. This study is done to find out how much Bata brand is aware in the market and also to find loyal customers of Bata. Bata operates in many different economic and cultural environments around the world, dictating very different types of operations. Although Bata does not sell the same shoes nor does it have identical stores in each country, customers will recognize common elements to the Bata experience everywhere in the world. The survey coversa wide range of activities and factors, which influence the many customers to express their feelings about Bata brand. The samples of 60 respondents were taken to represent Bata brand, and the result was not in the favor of Bata.
  • 7. 1.4 SCOPE OF THE STUDY: This project is done to provide an approach for analyzing market structure in terms of brand loyalty and brand awarenessfor the purchaseof Bata products. Ideally, your brand should be the first one that comes to the mindswithin specific product categories and associated with key consumer benefits. Consumersshould be able to identify which products and services Bata brand offers. They should also be able to identify which benefits are associated with the Bata brand. The intent of this study is to provide insights of the needs of two groups of customers, repeat buyers and operations of the brand, in order to help corporations develop appropriatemarketing strategies. This study was carried out in two stages: (1) Segmenting themarket into the two consumer groups; and (2) Analyzing the differences of the two groupsbased on the key factors thataffect consumption behaviors. The result of this study will help the Bata Companyto rectify their mistakes and to come out with new plan and promotional activity which helps them to create a good position in footwear industry again.
  • 8. 1.5 LIMITATIONS OF THE STUDY: Although all efforts have been made to study all types of population as compared to the topic of study, universe size and sample size, findings of the study will be considered and will be applied in Bangalore, only because perception of the customers varies in other place due to socio-economic and educational background. At last but not the least the study will try to find out real depth of the actual position of the brand. A project is a work that an executive or the personnel does by their efforts in research. There are many advantages that we can easily find and recommend in the company but like all projects this project also have some limitations, such as:- īƒŧ Personal interview: -It consists of few questions and answer session, so most of the people avoid it and that’s why we get little wrong response in the questionnaire. īƒŧ Field survey:- This method is also a key factor, butgenerally to that place where it has been done, becausethe result varies when we changethe area. īƒŧ Questionnaire: - Because of the busy schedule and fast life of the respondents, most of them do not give that is needed, so thataffects the result as well as analysis. īƒŧ Secondary sources:- Such as companydata makes in favor of the company, so problem occurs. īƒŧ Personal visitto the other footwear stores:- Thisis also a good technique, but most of them don’t discloses their sale unitand turn over becauseof the privacy. It is very difficult to influence and get right answer from old mentality customers. Therefore the result is applicable to Bangalore region only. These findings may not have much relevance in other regions of different from rest of the country. All the conclusions suggestions & recommendations will be made in the feedback obtained from the survey on the basis of responses given by the respondents.
  • 9. 2.1 INDUSTRY INTRODUCTION: Indian leather industry is the core strength of the Indian footwear industry. It is the engine of growth for the entire Indian leather industry and India is the second largest global producer of footwear after China. Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike, Reebok, Ecco, Deichmann,Elefanten, St Michaels, Hasley, Salamander and Colehaan are manufactured under license in India. Besides, many global retail chains seeking quality products at competitive prices are actively sourcing footwear from India. While leather shoes and uppers are produced in medium to large-scale units, the sandals and chappals are produced in the household and cottage sector. The industry is poised for adopting the modern and state-of-the-art technology to suit the exacting international requirements and standards. India produces more of gent’s footwear while the world’s major production is in ladies footwear. In the case of chapels and sandals, use of non-leather material is prevalent in the domestic market. Leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes, horrachies, sandals, ballerinas, boots. Non-leather footwear exported from India is Shoes, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials. With changing lifestyles and increasing affluence, domestic demand for footwear is projected to grow at a faster rate than has been seen. There are already many new domestic brands of footwear and many foreign brands such as Nike, Adidas, Puma, Reebok, Florsheim, Rockport, etc. have also been able to enter the market. The footwear sector has matured from the level of manualfootwear manufacturing methods to automated footwear manufacturing systems. Many units are equipped with In-house Design Studios incorporating state-of-the-art CAD systems having 3D Shoe Design packagesthat are intuitive and easy to use. Many Indian footwear factories have also acquired the ISO 9000, ISO 14000 as well as the SA 8000 certifications. Excellent facilities for Physical and Chemical testing exist with the laboratories having tie-ups with leading international agencies like SATRA, UK and PFI, Germany.
  • 10. One of the major factors for success in niche international fashion markets is the ability to cater them with the latest designs, and in accordance with the latest trends. India, has gained international prominence in the area of Colours & Leather Texture forecasting through its outstanding success in MODEUROP. Design and Retail information is regularly made available to footwear manufacturersto help them suitably address the season's requirement. The Indian Footwear Industry is gearing up to leverage its strengths towards maximizing benefits. Strength of India in the footwear sector originatesfrom its command on reliable supply of resourcesin the form of raw hides and skins, quality finished leather, large installed capacities for production of finished leather & footwear, large human capitalwith expertise and technology base, skilled manpower and relatively low cost labor, proven strength to produce footwear for globalbrand leadersand acquired technology competence, particularly for mid and high priced footwear segments. Resource strength of India in the form of materials and skilled manpower isa comparative advantage for the country.
  • 11. 2.2 HISTORY OF BATA: ī‚ˇ 1894-TheT.& A. Bata Shoe Companyis registered in Zelin, Czechoslovakia by the siblings Thomas, Anna and Antonio Bata - the eighth generation of shoe-making Batas. ī‚ˇ 1895-Antonioleaves the Companyto join the army, his sister Anna follows shortly after to get married. ThomasBata takes over the companyleadership alone. ī‚ˇ 1897-Thomasintroduces the “Batavia”, thefirst fabric shoe and with it production mechanization. ī‚ˇ 1905-Production reaches 2,200 pairsper day, produced by 250 employees. Constantinnovation of footwear to meet customers’ needs. ThomasBata’s motto is “Ourcustomer is our Master.” ī‚ˇ 1909-Firstexport sales and first sales agencies in Germany, in the Balkans and in the Middle East. Bata shoes are of excellent quality and are available in more styles than had ever been offered before. Demand grows rapidly. ī‚ˇ 1917-Salesreach 2 million pairs per year produced by 5000 employees. Advanced production equipment is imported. As the Companyprospers so do the communities where it operates. Bata creates stores, builds housing, schools and hospitals nearfactories. ī‚ˇ 1922-Followingthe First World War currencies are devalued and consumer purchasing poweris at an all time low. Bata cuts shoe prices by 50%; stores are flooded with customers forcing the industryto follow the lead. ī‚ˇ 1925-The“Bata system” organizes operations in autonomousworkshops with employee profit sharing introduced since 1923. Each onein the companyis an entrepreneur. The Bata School of Work founded. It provides rigorous education and practical training to future Bata managers. ī‚ˇ 1929-Introduction of customs tariffs. Bata responds by building factories in Swiss, Germany, England, France, Yugoslavia, Poland, Holland, theUSA and India By the early 1930s, Bata is the world’s leading footwear exporter. ī‚ˇ 1932-ThomasBata is killed in a planecrash on the way to visit a factory underconstruction in Switzerland. Underthe leadership of ThomasBata's uncle, Jan Bata, the companyintensifies diversification into the production of tires, aircrafts, bicycles,
  • 12. machineries. ThomasJ. Bata, the young son of ThomasBata, convenes the 1st internationalcongress of young Bata people. ī‚ˇ 1939-Bata operates63 companiesin various industries butfootwear remains the core business with 60 million pairs sold per year in more than 30 countries. ī‚ˇ 1940-Partof the Companymanagementunderthe leadership of ThomasJ. Bata starts to operate from Bata, near Toronto, Canada. ī‚ˇ 1945-AllBata companies in Eastern European countries are nationalized by communist governments. The Companystarts rebuilding itself from the remaining entities located outside Eastern Europe. ī‚ˇ 1960-TheCompany’sheadquartersare officially relocated in Toronto under the leadership of ThomasJ. Bata. ī‚ˇ 1989-With thefall of Communism, ThomasBata is invited by the new president, VaclavHavel, to return to the Czech Republicand receives a hero's welcome. A chain of shoe stores is opened with the headquarters in Zelin, and a small shoemaking factory begins operations in Dolman Nancy. ī‚ˇ 1990-Creativity, productinnovation and research for higher quality levels is the core of Bata’s product development policy. The results are the international high standard, Bata premium collection. ī‚ˇ 1995-Partnership developsin Eastern Europe. Bata stores reopen in Russia, Poland, Croatia and Slovenia. ī‚ˇ 1999-To adjust to the market evolution Bata undertakes a major reorientation from manufacturing to designing, marketing and distribution. ī‚ˇ 2001-Thomas G. Bata, the founder’s grandson becomes the Group’s Chairman. A new international structure is implemented around 4 meaningful business units (MBUs) to give more focus to the business and gain synergies within each region, especially in sourcing and product development. ī‚ˇ 2002-As a part of re-inventing its core competencies, Bata shoe innovation Centres open around the world to focus on the development of shoes with exclusive comfort technology features and design. ī‚ˇ 2004-New stepsinto China with the opening of the Bata procurement centre in Guangzhou and a distribution partnership for the opening of Bata retail stores. ī‚ˇ 2006-Start of the 262 acre, Riverbank Township construction project to modernize the Batanagar factory complex near Kolkata. It is expected to be
  • 13. completed by 2011 with 2500 modern houses for employees, a large hospital, a school, and IT Park, a hostel and residential along the riverside. Launch of the branded business division to consolidate our existing worldwide branded business activities into a leading industrial and professional footwear company. ī‚ˇ 2008-TheBata emerging markets unit was created in order to maximize the synergies of all operations in Latin America, Africa, Asia and India . ī‚ˇ 2009-TheEuropean shoeinnovation centre (SICE) in Padova, Italy launched this year. As well as conducting research into new innovations, materials and design for our shoe technologies, SICE design and sources top qualityproducts from the best worldwide suppliers for all our European stores.
  • 14. 2.3 COMPANY PROFILE: The companythatevolved into BATA SHOE ORGANIZATION was first registered in the town of Zelin, Czheclovakia on August 24th 1894. Itwas found by THOMAS BATA who was the grandfather of present president T.G.BATA. Although the Bata name had been a part of that tradition for 8 generations, spanningthree hundred years ThomasAntonius and Anna Bata wanted to improve conditions for themselves and for shoemakers of the future. The credo “Our Customer Our Master” served as the guiding principle for Bata Shoemaker and employers. The young company overcomes many difficulties. In order to meet growing demands during the early years, new production machinery was found in other countries and innovative shoe making techniques were devised skilful and successful Bata employees. Bata’s reputation as innovative industry leader has been maintained ever since. In every 1920’s Bata established new companies in Poland, Denmark, Yugoslavia, Holland, UK and USA. Bata is one of the world’swidest reaching companies, with operationsin 68 differentcountries. Bata companiesstrive to listen to the customersin their local marketsand clearly identify their footwear needs, and then to provide products that exceed their customers’ expectationsin terms of quality, style and value. Bata operating companiesare groupedinto four businessunits based on similarities in marketsand business issues. Each group benefitsfrom synergiesspecific to their requirements, such asproductdevelopment, sourcing and marketing support. Each business unit is entrepreneurialin nature, and can quickly adaptto changes in the marketplace and seize potential growth opportunities.
  • 15. 2.3.1 OVERVIEW- īļ Serves one million customers per day. īļ Employs more than 40000 people. īļ Operates 4600 retail stores. īļ Managesa presence in over 50 countries. īļ Runs40 production facilities across 26 countries. īļ Serves 1lakh customers per day. īļ Employs more than 8900 people. īļ Operates 1100 retail stores. īļ Runs5 production facilities across India. īļ Network of 1600 retail stores. Bata Shoe organization (B.S.O.) is the largest manufacturer and marketer of footwear in the world. Its global business comprises of shoe factories, tanneries, engineering plants, quality control laboratories, product development and research 22 centers. Bata distributes its products through approximately 6,300 retail outlets, 10,000 franchises and thousands of wholesale depots and dealers. More than 50,000 people are employed in producing and selling over 300 million pairs of shoes each year, primarily for the domestic markets in which B.S.O companies operate.
  • 16. 2.4 REVIEW OF LITERATURE: Literature Review is the documentation of a comprehensive review of the published and unpublished work from secondary sources of data in the areas of specific interest to the researcher. The main aim is to find out problems that are already investigated and those that need further investigation It is an extensive survey of all available past studies relevant to the field of investigation. It gives us knowledge about what others have found out in the related field of study and how they have done so. A successful brand is an identifiable product, service, person or place augmented in such a way that the buyer or user perceives relevant, uniqueadded valueswhich match their needs most closely. Furthermore, its success results from being able to sustain these added values in the face of competition. Successful brands deliver benefits to satisfy customer needs. These needs include rational needs (such as features, packagesor the price of a brand) and emotional needs (such as prestige, distinctiveness, style or the social reassurance of a brand). Brand loyalty measurement has not flourished in the marketing literature. A person's attitude toward a brand is relevant to the degree of their brand loyalty. Brand awareness is linked to consumers brand preferences, that salient brands are high in both intentions to buy the brand and brand loyalty. It is a well known fact that a distinctive brand identity is one of the most influential factors in determining how consumers differentiate between similar products and services.
  • 17. 2.5 MARKETING STRATEGIES: īļ Market-scope strategy choices- 1. Single-MarketStrategy 2. Multi-market Strategy 3. Total-market Strategy Among the three choices Bata has chosen and uses ‘Total-Market strategy’s they serve all classes of people with their shoes ranging from 30/--2195/-. The specifics of the strategy is provided below- īļ Definition: Serving the overall market with one or some other kind of offerings. īļ Objective:To diversify the risk of serving only one market. īļ Requirements: 1. Carefully selecting all the segments and providing offerings to all. 2. Avoid confrontation with companies serving the entire market. īļ Expected Results: 1. Higher Sales. 2. Higher Market Share. īļ Market-GeographyStrategy choices- 1. Local-Market Strategy 2. RegionalMarket Strategy 3. NationalMarket Strategy 4. InternationalMarket Strategy Among the market-Geography Strategies Bata follows the 'National- Market Strategy’ as they distribute their product to the whole of world using their own and Danish's distribution channel.
  • 18. īļ Definition: Operating nationally. īļ Objective:To seek growth. īļ Requirements: 1. Top managementcommitment. 2. CapitalResources. 3. Willingness to take risks. īļ Expected Results: 1. Increased growth. 2. Increased market share. 3. Keep up with competitors īļ Market-Entry Strategychoices: 1. First-In Strategy 2. Early-Entry Strategy 3. Laggard-EntryStrategy Among the Market-Entry choices, Bata Bangladesh uses ‘First-In strategy’ which is characterized by the following: Definition:Entering market during the introduction stage. Two modes of entry are feasible: Conventionalmarketing strategy Initiator- Entering market with unconventionalmarketing strategies īļ Objectives: To understand themarket first and reap the profit at the beginning andwaiting for the competitors and strike them with good lowering price and improved quality. At the same time it offers variety of products. īļ Requirements: 1. Market research ability.
  • 19. 2. Production capability. īļ Expected results: 1. Putting market on a new growth path. 2. Increased profits. 3. Some growth opportunities. ī‚ˇ Product Strategy choices: 1. Product-Positioning Strategy 2. Product Repositioning Strategy 3. Product-Overlap Strategy 4. Product-Scope Strategy 5. Product-Design Strategy 6. Product-Elimination Strategy 7. New-ProductStrategy
  • 20. 8. Diversification Strategy Among the product strategies Bata has used 'Product-Positioning Strategy' and 'Diversification Strategy' which is characterized by the following: Product-Positioning Strategy: ī‚ˇ Definition: Placing a brand in that part of the market where it will have a favorable reception compared with competing brands. ī‚ˇ Objectives: Position product in market so thatit stands apartfrom competing brands. To position the productso thatit tells customers whatyou stand for, whatyou are, how you would like customers to evaluate you. ī‚ˇ Requirements: Use of marketing mix variables (design and communication efforts). Successful managementof a single brand requires positioning the brand in the market so that it can stand competition from the toughest rivals and maintaining its uniqueposition by creating the aura of a distinctive product. Successful managementof multiple brandsrequires careful positioning in the market so that multiplebrandsdo not compete with nor cannibalizeeach other. Thusit is important to be careful in segmenting the market and to position an individualproductas uniquelysuited to a particularsegment through design and promotion. ī‚ˇ Expected Results: Meet as much as possible the needs of specific segments of the market. Limit sudden changein sales. Make customers faithfulto the brands.
  • 21. ī‚ˇ Distribution Strategy: ī‚ˇ Definition: Developing unfamiliarproductsand markets through- Concentric diversification (products introduced are related to existing ones in term of marketing or technology), Horizontal diversification (new products are unrelated to existing ones but are sold to the same customers), and Conglomerate diversification (products are entirely new). ī‚ˇ Objectives: Diversification strategies response to the desire for- Growth when current products/markets have reached maturity, Stability by spreading the risks of fluctuations in earnings, Security when the company mayfear backward integration from its major customers, and Credibility to have more weightin capital markets. ī‚ˇ Requirements: In order to reduce the risk inherent in a diversification strategy, a businessunit should- Diversify activities only if current product/market opportunities are limited, Have good knowledge of the area in which it diversifies, Provide the products introduced with adequatesupport, and Forecast the effects of diversification on existing lines of products. ī‚ˇ Expected results: Increase in sales. Greater profitability and flexibility.
  • 22. īļ Pricing Strategy choices For new products: (1)Skimming Pricing (2)Penetration Pricing At times Bata Shoe Companyused 'Penetration Strategy' which is characterized by the following: ī‚ˇ Definition: Setting a relatively low price during the initial stages of a products life. ī‚ˇ Objectives: To discourage competition from entering market by quickly taking large market share and by gaining cost advantagebyrealizing economies of scale. ī‚ˇ Requirements: Products must appealto a market large enough to support the cost advantages. Demand mustbe highly elastic in order for firm to guard its cost advantage. ī‚ˇ Expected Results: High sales volume and largemarket share. Low margin on sales. Lower unit costs relative to competition due to economies of scale.
  • 23. 3.1 BRAND LOYALTY: Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a productor service or other positive behaviors such as word of mouth advocacy. It is an extent of the faithfulness of consumers to a particular brand, expressed through their repeat purchases, irrespective of the marketing pressure generated by the competing brands. A loyalty program should have a long enough timeframe to ensure its success. When a brand launches a loyalty program, it is making a statement to its customers that the relationship is valuable and that the brand appreciates it. Pulling back can be seen as the brand telling its customers, “Nah, you’re not as important as we thought.” Or even worse: “Hey we didn’t make enough money out of this so we’re ditching you.” True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behavior. This type of loyalty can be a great asset to the firm: customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to the firm. OVERALL SERVICE QUALITY VALUE FOR MONEY OVERALL COMPANY RATING IMAGE LOYALTY CALL CENTER
  • 24. 3.1.1 IMPORTANCE OF BRAND LOYALTY- There are three main reasons why brand loyalty is important: īļ Higher SalesVolume – Theaverage United States Companyloses half of its customers every five years, equating to a 13% annualloss of customers. This statistic illustrates the challengescompanies face when trying to grow in competitive environments. Achieving even 1% annual growth requires increasing sales to customers, both existing and new, by 14%. Reducing customer loss can dramatically improve business growth and brand loyalty, which leads to consistent and even greater sales since the same brand is purchased repeatedly. īļ Premium PricingAbility – Studiesshow that as brand loyalty increases, consumers are less sensitive to price changes. Generally, they are willing to pay more for their preferred brand becausethey perceive some uniquevalue in the brand thatother alternatives do not provide. Additionally, brand loyalists buy less frequently on cents-off deals – these promotions only subsidize planned purchases. īļ Retain Rather than Seek – Brand loyalists are willing to search for their favorite brand and areless sensitive to competitive promotions. The result is lower costs for advertising, marketing and distribution. Specifically, it costs four to six times as much to attract a new customer as it does to retain an old one.
  • 25. 3.1.2 CREATING BRAND LOYALTY – Favorable brand attitudes are the determinants of brand loyalty consumers must like the product in order to develop loyalty to it. In order to convert occasional purchasers into brand loyalists, habits must be reinforced. Consumers must be reminded of the value of their purchase and encouraged to continue purchasing the product in the future. To encourage repeat purchases, advertisement before and after the sale is critical. In addition to creating awareness and promoting initial purchases, advertising shapes and reinforces consumer attitudes so these attitudes mature into beliefs, which need to be reinforced until they develop into loyalty. For example, the most avid readers of a travel ad are those who just returned from the destination. Ads reinforce a traveler’s perception and behavior. Remember, it is easier to reinforce behaviors than to change them and the sale is just the beginning of an opportunity to turn the purchaser into a loyalist. A few more points to keep in mindâ€Ļ īļ Develop an unbeatableproduct- if you wantto keep customers, make sure they can get whatthey wantfrom your product. īļ Givecustomers an incentiveto repeat purchase- chance to win a prize, gift with a certain numberof proofs of purchase, in-packdiscount coupon, etc. īļ Stand behind your product – if customers don’t trust the product, they won’t purchaseit again. īļ Know your trophy customers and treat them best of all – remember the rule that 80% of sales will come from the top 20%of customers. īļ Makeit easier to buyyour brand than competing brands – availability and simplicity are keys in today’s high-speed world. Customers appreciate convenience more than ever. īļ Go to your customers - bring the productto customers when possible. īļ Becomes a customer service champion – seek to serve the customer and they will repeat purchaseâ€Ļ again and again!
  • 26. 3.1.3 BRAND LOYALTY TOWARDS BATA - Bata, as a trusted footwear brand try to satisfy their customers by providing best quality of products and services. There are many customers who are loyal to Bata products and services because they always prefer Bata, and repurchase footwear from them. Theimage of Bata in the Indian footwear industry is very high, so many customers they don’t look after the price in case of Bata footwear as they have a belief about their service quality. Bata delivers what they promise to their customers so many customers they recommend their friends and relatives about Bata products and services. This shows the loyalty of customers towards Bata brand. Bata believe that the cost of acquiring customers is six times that of retaining them and, therefore, ensuring loyalty is commercially important. Loyal customers are also importantbecause they provide the consistency of volume critical for mass production not to mention the consistency of revenue required to run a business. As a result Bata brandslook toward loyalty programsto reward loyal customers and encourageretention.
  • 27. 3.1.4 BRAND LOYALTY STRATEGY OF BATA - Bata has taken three forms: īļ Creating customersatisfaction-Delivering superior qualityproducts and services. īļ Buildingbrand equity-Thesum of the intangibleassets of a brand. Factors that contribute to this are: nameawareness, perceived quality, brand loyalty, the associations consumers have towards the brand, trademarks, packaging,and marketing channelpresence. īļ Creating and maintainingrelationships-Success with any of these strategies will result in high levels of repeat purchase, insulation from price increases and improved responsiveness to marketing communicationsby customers. There has been an evolution of marketing thoughtand activity over this last decade. Initially, the quality movement placed customer satisfaction as the ultimategoal of marketing programs. However, as satisfied customers were shown to defect to other brandsor providers at relatively high rates, strategists looked to creating a greater commitment with the customer. Two ways to achieve this were to build brand equity (primarily for consumer products) and to build relationships (primarily for industrialproducts.) Brand equity used mass media advertising, corporate citizenship and publicevents sponsorship to build a brand image. Relationship marketing sought to build interdependencebetween partners and relied on one-to-one communications, historically delivered through the sales force. With the growth of marketing databasesand the Internet, the ability to reach customers individuallybecame a viable strategy for a wide rangeof firms including consumerproducts companies.
  • 28. 4.1 RESEARCH METHODOLOGY: Research is an endeavour to discover answers to intellectual and practical problems through the application of scientific method. Research is the systematic process of collecting and analyzing information (data) in order to increase our understanding of the phenomenon about which we are concerned or interested. It is an extensive survey of all available past studies relevant to the field of investigation. It gives us knowledge about what others have found out in the related field of study and how they have done so. A research methodology is the specification of methods and procedures for acquiring the information needed to structure or to solve problems. It is the overall operational pattern or frame work of the project that stipulates what information is to be collected from which sources, and by what procedures. If it is a good design it will ensure that the information obtained is relevant to the research problem and that it was collected by objective and economical procedures. A research design might be described as a series of advance decisions that, taken together, from a specific master plan of model for the conduct of the investigation. Although research designs may be classified by many criteria, the most useful one concerns the major purpose of the investigation. ī‚ˇ Type of research- Exploratory research or Formulative research. The research hasbeen conducted within the data and information availableto gain familiarity with the problem, to generate new ideas or to make a precise formulation of the problem. The current scenario is observed and an attempthas been done to relate the various variables. The major purposes of exploratory studies are the identification of problems, the more precise formulation of problems (Including the identification of relevant variables), and the formulation of new alternative courses of action. An exploratory study is often the first in the series of projects that culminatein one concerned with the drawing of inferences that are used as the basis of management action. Thatis, an exploratory study is often used as an introductory phaseof a larger study and results are used in developing specific techniquesfor the larger study. Secondarysources of information, as used in the section, are the rough equivalentof the “Literature” on the subject.
  • 29. 4.2 RESEARCH DESIGN: The research design states that the conceptual structure within which the study should be conducted is descriptive in nature. The researcher used descriptive study to describe the awareness of Bata among the consumers in market and to find loyal customers of Bata and also to find out its demand, efficiency, brand image and its features. īƒŧ Sampling Unit- The sampling unit selected as respondents who are the customers in the market buy footwear of Bata brand from different stores of Bangalore īƒŧ Sampling Size- The sample has taken as 80 for collecting accurate information but received only 60 samples from the respondents, so 60 is the sample size taken for measuring the awareness and loyalty of Bata brand.
  • 30. 4.3 LIMITATIONS: īƒŧ Brand awarenessdimension was not found significantin the tested model. īƒŧ Brand loyalty help the marketing researchers and marketing managersto understand themarket. īƒŧ These measures also help out to segment the market. īƒŧ The measures help to know the consumption frequency. īƒŧ Brand awarenessmeasures the accessibility of the brand in memory. īƒŧ These measures help the Consumersrely only a few piece of information with which they feel confident to help them decide how the brand might perform. īƒŧ It is a well known fact that a distinctive brand identity is one of the most influentialfactors in determining how consumers differentiate between similar products and services.
  • 31. 4.4 DATA COLLECTION: īƒŧ The data collected are primary data among the various customers to find out the level of awarenessand loyalty of Bata among different footwear, and its demand based on prescription and its features in various angles. īƒŧ Secondarydata was collected using internet and books. īƒŧ METHODOF DATA COLLECTION:As survey is best suited for descriptive research so the research conducted directly for individual respondents through questionnairemethods. Theinterview is structured where the questions asked in a sequence and prescribed manner. Therefore the received data is about the respondent’s awareness of Bata and loyalty towards Bata and there is lesser degree of inaccuracyin survey method.
  • 32. 4.5 SAMPLING DESIGN: The below given questions about brand loyalty contains sampling: 1. Are you familiar about brand BATA how many times you purchase it? 2. Which footwear brand first comes to your mind when you think of India? 3. Which footwear brand do you use the most (tick 1)? Khadims Liberty Bata Shree Leathers Elite Action School time Woodlands Reebok Nike Adidas Others None of the above? No specific brand? 4. Which brand do you think is the most popular footwear brand in India? Liberty Bata Khadims Shree Leathers Elite
  • 33. Woodlands Reebok Nike Adidas If none of the above please mention the Brand:-- 5. Given below is a statement about the brand Bata. Express your opinion about the same: “Bata isan Indian brand” Agree Disagree I am not aware 6. Do you consider Bata to be a one stop family store? Yes No 7. Which brand do you recall by “SchoolShoes”? Khadims Liberty Bata Shree Leathers Elite 8. Which of the above mentioned brand is, or has been your most preferable brand of schoolshoes?
  • 34. 9. How many members in your family use BATA footwear? None Just Myself Many 10.Rank the following footwear brands in order of preference on a scale of 1- 5 (1 low, 5 high) BRANDS RANK BATA KHADIM’S ELITE SREE LEATHERS LIBERTY WOODLANDS ADIDAS REEBOK NIKE īƒŧ IEN
  • 35. īļ JOURNAL AND MAGAZINES- īƒŧ HE ECONOMICS TIMES īƒŧ COMPANY JOURNALS īƒŧ THE HINDU īƒŧ THE TIMES OF INDIA īļ WEBSITES- īƒŧ www.bataindia.com īƒŧ www.google.co.in īƒŧ www.hindubusinessline.com īƒŧ www.wikipedia.org