A retail study done at Bangalore .It focuses on no.of footfalls,conversion rate and other observations made at the store.

1. Indian Institute of Plantation Management,
Bangalore
ASSGINMENT 1
RETAIL AND DISTRIBUTION MANAGEMENT
A retail study on Bata India
SUBMITTED BY
PADMAPRIYA V.
14PGDM27

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Background
Indian footwear industry holds a crucial place in the Indian economy for its potential for
employment, especially for weaker sections, and for supporting economy through its foreign
exchange earnings. India is the second largest global producer of footwear after China,
accounting for 9% of the global annual production of 22 billion pair as compared to China’s
share of more than 60%. India annually produces ~2.1 billion pair of which, ~90% are
consumed internally while remaining are exported primarily to European nations. Due to
this, India’s share in the global export market of ~US $ 120 billion is a paltry 1.9% in value
terms making it much lower than China’s share of ~40%.
According to The Associated Chambers of Commerce and Industry of India
(ASSOCHAM), an industry body,the foot wear segment is Growing at a compound
annual growth rate (CAGR) of about 15 percent, the Indian footwear industry is likely to
reach approximately Rs 38,700 crore by 2015 from the current level of around Rs 22,000
crore, according to a study titled ‘Indian Footwear Industry: An Analysis’ released by. On the
contrary, the global footwear market which is growing at a CAGR of about 5 percent is
currently estimated at approximately Rs 10.15 lakh crore and is likely to reach Rs 12.34 lakh
crore by 2015.
The domestic footwear market is driven by growing fashion consciousness together with
increased disposable income among India’s urban middle class which contributes about 45
percent of overall footwear market making India the second largest global producer of footwear
across varied segments after China. Low production cost, abundant availability of raw material,
ever-evolving retail ecosystem, buying patterns and a huge consumption market are certain basic
features that set apart the Indian footwear market.
India produces nearly 300 crore pairs of footwear annually, exports over 10 percent and accounts
for about 15 percent of annual global footwear production which is over 2,000 crore. Driven by
larger penetration into tier II and III cities and growing rural market, various premium footwear
brands are entering India’s non-metro market which holds enormous growth potential and
accounts for about 55 percent of the overall footwear industry. According to the study, Indian

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footwear market is dominated by men’s segment which accounts for about 55 percent followed
by ladies’ and kids’ segement which account for around 30 and 15 percent, respectively.
Nearly 70 percent of the labour-intensive footwear industry in India is in the unorganised sector
and employs about 15 lakh people, majority of whom are rural artisans, cottage and household
units, while the organised sector accounts for remaining 30 percent and employs over 5 lakh
people.
Most of the footwear brands have exclusive outlets and account for about 55 percent of the
footwear market while multi-brand retail outlets account for about 30 percent.
In the non-leather footwear segment, there is huge demand for slippers as they are cheap,
convenient and suit the needs of the rural consumer as it can be used as a multi-purpose
footwear. Rural India accounts for about 60 percent of slippers manufactured in Indian footwear
market.
Online shoe shopping is a fast emerging segment in terms of footwear sale and currently
accounts for about 8 percent of the overall industry and is expected to reach nearly 20 percent by
2015.
Introduction
“BATA IS THE MARKET LEADER WITH OVER 16% SHARE IN THE ORGANISED
FOOTWEAR SEGMENT”
Bata India is the largest retailer and leading manufacturer of footwear in India and is a part of the
Bata Shoe Organization.
Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up initially as
a small operation in Konnagar (near Calcutta) in 1932. In January 1934, the foundation stone for
the first building of Bata’s operation - now called the Bata. In the years that followed, the overall
site was doubled in area. This township is popularly known as Batanagar. It was also the first
manufacturing facility in the Indian shoe industry to receive the ISO: 9001 certification.
The Company went public in 1973 when it changed its name to Bata India Limited. Today, Bata
India has established itself as India’s largest footwear retailer. Its retail network of over 1200

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stores gives it a reach / coverage that no other footwear company can match. The stores are
present in good locations and can be found in all the metros, mini-metros and towns
Bata’s smart looking new stores supported by a range of better quality products are aimed at
offering a superior shopping experience to its customers.
The Company also operates a large non retail distribution network through its urban wholesale
division and caters to millions of customers through over 30,000 dealers.
Bata India Limited is engaged in the manufacturing and retailing of footwear and accessories for
women, men and kids. The Company offers various categories for women and men, which
include chappals, closed shoes, sandals, formal shoes and sport shoes. The Company’s women
accessories include scarves and handbags. Its men accessories include bags, belts, wallets, shoe
care, foot care, handkerchief and socks. The Company’s brands include Ambassador, Angry
Birds, Bata, Bata Lite, Bata Walks Green, Comfit, Hush Puppies, Marie Claire, Naturalizer,
North Star, Power, Sandak, Scholl, Sparx, Sundrops and Sunshine, among others. It also operates
a non-retail distribution network through its urban wholesale division. The Way Finders Brands
Limited (WFBL) is a wholly owned subsidiary of the Company.
Values
 Constant innovation in design and product development
 Superior customer service.
 Excellence in operational and commercial execution.
 Entrepreneurial spirit and passion to win.
 Teamwork in international environment.
 Trust and respect for our employees.
 Adding value to the community
 Delivering on our commitment to shareholders.

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Recently, Bata wants to reposition its brand. It has come up with a stand alone stores .It wants
to focus on front end cutting costs at back end. The front end strategy is focused on higher
footfalls, higher value retailing, driven by a new-look store layout and a resurgent brand and
back-end strategy of process rationalization in form of raw material cost and manpower cost
reduction.
BATA INDIA LIMITED TODAY !
 Sells over 50million pairs of footwear every year
 Serves over 150000 customers everyday
 Sells through 1400 retail stores
 Operates 5 manufacturing facilities
 Employess more than 8000 people.
 Premiumization to drive sales per store Company intends to increase sales per store by
improving value mix with a focus on the high margin leather segment that includes
accessories such as ladies bags, caps, belts among others. With parent Bata Shoe
Organization (BSO) enjoying 20% market share worldwide in the industrial shoes
segment, Bata plans to leverage the expertise and technology in India for industrial and
defence shoes. The defence sector requires 12m footwear every year, which is
supplied by unorganized players, thus providing greater scope for an organized player
like Bata. Company recently got a large order from the Indian Air Force.
The present assignment is basically to study about the footwear retail store. Since ,footwear in
India is still dominated largely by unorganized sector, untapped market ,Bata being a organized
one, frequently it is customizing as per Indian customers and it is rebooting its business
strategies. With this above background ,it motivated me to do a retail study in Bata India’s
individual stores ,to understand their strategies that is existing at the store level and this also
reveals the importance of choosing a strategic location in ease of doing the business.
*************

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RETAIL STUDY
The retail study was conducted at Bata store at Basveshwaranagar ,Havnoor circle ,Bangalore
.The main observations was done only for seven days .The convenient timings was chosen for
the study .
Morning –Between 10.00 am- 12.00 noon
Afternoon -3.00 pm-4.00 pm
Evening – 6.30.pm -8.30.pm.
For the further queries ,store manager help was taken to understand the store layout, proximity of
customers in the store ,space planning ; merchandise and marketing mix strategies ,up-selling
and cross selling ,etc.
Take away from the study
To understand number of footfalls to the store with respect to timing of the visit
To understand the conversion rate with respect to foot falls and average billing done by the
customers.
To observe the store space and understand about marketing mix strategies.
About the store
The store was started during 2005 in Basweshwarnagar. Earlier the store was located at
“Navarang” and later it took frequent changes in the lacation and now took a firm stand as a
stand alone building in Havnoor circle .It is a commercial cum residential place.
Store manager –Mr.Srinivas
Contact No.805099086
Location and site selection
Location selection is the first and foremost important element for any retail store. It was
observed that the chosen location is in the heart of the area. The left hand of the area is fully a

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commercial area while right side is a residential area.The Economic conditions-elite class and
middle high class people reside in then area.Thus these are the targeted customers.
Opposite to the store a well known fast food restaurant–Pvitra paradise is situated. Very
Closely,Mc.Donalds is situated. People from three areas come to these restaurants. Bata
possibly cater these customers too. Analyzing all these factors and area, Bata structure the
strategic fit with the target market considering the demographics, lifestyle of the customers
and some other factors.
Competitiors –COMPETITIVE ANALYSIS
Down the lane of the store , Adidas, Puma, Metro, Khadims are the main competitors.These
stores are catering to high end customers.
STORE STRUCTURE
Usually 5 concept of business is being followed by Bata .
City or Town location ,Shopping Centre Concept ,Bazaar Concept ,Family concept ,Clearance
outlet.
NIKE
,REEBOK,ADIDAS,
PUMA,WOODLAND
S
ACTION ,LIBERTY
,NIKE ,ADIDAS
,REEBOK
BATA ,ADIDAS
,LIBERTY,NIKE,KHADIMS
BATA,LUNARS,VKC PRIDE,KHADIMS Lower Income
Group
Lower middle
class
Elite class
Upper middle
class

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Out of these ,the store is of family concept type – It is basically a three storied building .So it
contain shoes for all members of the family. It display all the items in the first place but these
stores are mostly limited items according to the area and business model targeting the specified
stores customers.
MERCHANDISE
Merchandising method –Stocks –store ;Number of brands -20
Range of products
Gents ,Ladies
,Children(Formal shoes )
Ladies,Gents ,Kids footwear
Socks
Polishes
Brushes
Lace
shiner
Bags (School,hand bag,totes)
Hankeys
Clutches
Foot care
Valets
Scarfs
Belts
Breadthofassortment(Variety)
Width of assortment
Shoes
Formal
Informal,
sports
Varieties
Men
Women
Kids
Polish Varieties
Wax
Spray
liquid
Kerchief
Sold as brand
ambassador
Socks
Sports,health care
(Men,Women)
Fomal,ankle
socks

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List of brands under BATA
NUMBER OF FOOT FALL
Footfalls are the number of customers visiting the store .
Day morning late
afternoon
evening Total
Monday 3 5 20 28
Tuesday 8 12 15 35
Wednesday 5 8 17 30
Thursday 10 10 12 32
Friday 10 10 20 40
Saturday 10 20 40 70
Sunday 45 15 30 90
Total 91 80 154 325
BATA SAFARI
BATA AMBASSADOR POWER
BATATECHNOLOGY
(FLEXIBLES,ANTISTATIC )
SUNDROPS
BABYBUBBLES TOUGHEES
COMFIT WEINBRENNER
INDUSTRIALS TOMMY TAKKIES
BUBBLE GUMMIES BATA ACCESSORIES
MARIE CLARIE BATA SHOE CARE
NORTH STAR SCHOLL -PREMIUM
PATA PATA HUSH PUPPIES

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Interpretation
From the above ,it can be observed that ,evening time (6.30-8.30 pm )footfalls are more and
again in the week end Sunday ,especially morning time it is more .Evening time is the best time
preferred for shopping ,because it is the time all age groups of people come out of their house
and spend their time .
3
8
5
10 10 10
45
5
12
8 10 10
20
15
20
15 17
12
20
40
30
0
10
20
30
40
50
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
No.offootfalls
days
Footfalls based on timings
morning late afternoon evening
28
35
30 32
40
70
90
0
10
20
30
40
50
60
70
80
90
100
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Total footfalls
Total

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From the above graph it can be observed that in weekends ,footfalls are very high. Because
,weekends will be off ,and people like to relaxation in terms of shopping experience.
CONVERSION RATE :
Percentage of footfalls buying goods and services
According to the store manager ,75% of the customers are assured customers .But this only
applicable to category of merchandise .For examples ladies bags, leather valets –these prices are
high. For footwear category, customers are determined what to buy and they come and pick their
favourite brands of footwear.
Fig 3: Conversion rate of footfalls
AVERAGE BILL AMOUNT.
The total amount in a week is 2,33,500Rs. Avg bill amount is Rs.615/head. Per day avg billing is
28585 Rs.It is inclusive of discounts (33% or 50%) on certain categories . However ,there are
some premium brands like scholl,comfit charge premium prices , for this discounts are not there.
Therefore approximate billing amount is noted down. The below table gives the billing value
21
26.25
22.5 24
30
52.5
67.5
0
10
20
30
40
50
60
70
80
No.offootfalls
Days
conversion rate
con rate

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Table :billing details of the BATA store
Day Bill val Footfalls
Monday 19600 28
Tuesday 24500 35
Wednesday 21000 30
Thursday 16000 32
Friday 24000 40
Saturday 45000 70
Sunday 50000 90
Total (1
week)
200100 325
Avg 615.69/Head
Avg/day 28585
STORE LAYOUT
“Store layout needs to guide the customer silently about where he/she wants to go and for
exposing him/ her to the entire store offering”.The store itself it’s the most meaningful
communication between the retailer and the customer.
The BATA store is free flow or boutique type of store layout .
The simplest type of store layout is a free flow layout, in which fixtures and merchandise are
grouped into free flowing pattern on the sales floor. Here , Socks and shoes; leather purse /Vallet
and Bata key chains ;polish and varnish are grouped.
Customers are encouraged to flow freely through all the fixtures, because there are usually no
defined traffic pattern in store. This type of layout of works well in small stores, usually smaller
than 5000 square feet,(here 4800sqft) in which customers wish to browse through all the
merchandise. It there is a greater variety of merchandise (for instance, men’s and women’s
apparel, bedding, and health and beauty aids), a free-flow layout fails to provide cues as to where
one department stops and another start confusing the shoppers.
Advantage-: increased impulse buying · Disadvantage-: possible confusion and waste of floor
space

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Store Design
Means how best the interiors and exteriors are synchronizing with the merchandise .
In Bata store :
Interiors
Interiors Features Exteriors Features
Method of display At PoP
POS
Special fittings
Walls
Location Havnoor Circle
Visual merchandising Only few products Marquee (A name
plate to identify the
Visibility is there at the
entrance
Entry /Exit
Merchandise
Fixtures
Easy movement

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brand )
Signage For differentiating
sub brands ,it is used
Store entrance In the middle
Window display Vast
Door types Glass doors
Walk ways Multiple ,stairs
Size of the building 4200 sqft.
Colors and materials Bright colors
Visual merchandising is the activity and profession of developing the floor plans and three-
dimensional displays in order to maximize sales. Both goods or services can be displayed to
highlight their features and benefits.
Signage, refers to the design or use of signs and symbols to communicate a message to a specific
group, usually for the purpose of marketing or a kind of advocacy.
PRICING
Pricing strategy used by BATA is odd pricing .The price adjustments or fixation depends upon
the demand .However,the store doesnot have any power to do so, based upon the Prices set at top
level in Bata org. the store will follow. Below table describes the range of prices
Table :Range of pricing at store
Types Age Price (Rs)
For infants Infants 299-1000
Children 4-9 yrs 299 onwards
10-14 yrs Ends at 1399
Leather shoes Above 15 yrs 899-5500
Sport shoes Above 15 years 1100-2500
ladies Above 15 years 299-1999
Cut shoes normal Above 15 years 299-499
Cut shoes leather Above 15 years 1499
Discounts are also prevailing at recurring number like 33% and also 50 % .It was also observed
that , only the non sold items are kept for sale or at discount. If we consider other catagories,
like complementary items , prices are high.
PLACE :
Distribution network is good. Once the stock is over ,the 12000 pair of footwears are sent to
the stores through the stockiest .This is the maximum limit that store can have .

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Time –working hours morning 10 am to night 10 pm .
Parking facility is available .
Other facilities are credit card ,gift card etc .
CRM activities : MOBILE –MESSAGES ,REDEEM POINTS ,BATA card is being given to
customers .
If stock is not available , stock is ordered and delivered at customer house.
PROMOTION
Promotion is done through magazines, online sales/deals in different E-Commerce companies.
Banners ,pamphlets ,promo codes .
Using soft sell messages –aims at developing brand liking ,preferences in terms of
features,pricing ,benefits or brand itself .It is to create the positive brand image in minds of
people .

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A glance of the store
Men section
Polish,brushes
Signage
Marquee
Promotion
Entrance
Main road
Stand alone store

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ags
Other section of the store-ground
floor Billing counter
1st
floor
Accessories
Bright colors
Premium foot wear
Bags
3rd
floor –for stocks

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Proximity
Kids zone
Foot wear at
discounts
Sitting
facility
Mirror
CSR @
BILLING
COUNTER