retail strategy of bata -history -swot analysis -competitor's analysis -pestel analysis

1. Submitted by:
Aditi Singh
Arindita Dey
Ashwarya Chaudhary
B.des 01, FMRM
Submitted to:
Ms. Renu Sharma
Faculty (Retail)
SCHOOLOFFASHIONMERCHANIDISINGAND
RETAILMANAGEMNET
2017
FOOTWEARDESIGNAND
DEVELOPMENTINSTITUE,NOIDA

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Founder: Mr. Thomas Bata

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 INTRODUCTION:
Bata India’s History-
Incorporatedin 1931, as a Bata shoe company Private Limited in Calcutta.
It became a public limited company in 1973 and the name was changed
was to Bata India Limited. Today the companyhas operates over 1200
stores PAN India. It also caters to millions of customers to its urban
wholesale division and22,000 dealers.
Bata India today :
• Turnover around 2500 crores.
• Sells over 50 million pars of footwear every year.
• Serves over 1,50,000 customers everyday.
MISSION STATEMENT
“Offer consumers ‘surprisinglyaffordable’shoes behind great style and
superior comfort”
VISION STATEMENT
“To make great shoes accessible to everyone!”

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 CORE VALUES:
 Serve with passion-
Serve individual needs of customers with passion.
 Be bold-
Have the courage to change and encourage creativity& innovation.
 Counton me-
Lead by example and take responsibilityfor own performance.
 Exceed customer expectations-
Delight customers by meeting their diverse needs.
 Improving lives-
Make all stakeholders’ lives better (customers, suppliers, employees and
communities.

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 IMPORTANT MILESTONES:

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• Bata ranked 14th
in India’s most attractive brands report
and 11th
in India’s most trusted brands report for 2015.

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 STRATERGY:
The company’s strategy encompasses the following:

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• Product is the KEY to success.
• MAXIMUM reach across channels.
• Ensure SEAMLESS SHOPPING EXPERIENCE.
• Buildstrong & ASPRIATIONAL Brands.
• Buildthe right TEAM & CULTURE.
BUSINESS MODEL OF THE COMAPNY
Retail Formats:
Retail network of over 1200 stores-
• With over 2 million Sq.ft. of retail space.
• Presence in over 500 cities across India.
• Over 100 stores are opened every year and existing stores are
renovated.
The following stores operate for Bata India in 2 categories- Flagship &
City and Family stores-

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E-Commerce:
Through leadinge-commerce websites, through our their own website and
their own mobile application ‘Bata India’ Their features include home
deliverywithin 7 days and can order through the nearest Bata stores.

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 FAMOUS BRANDS:
Bata, Mocassino by Bata, Ambassador by Bata, Hush Puppies, Scholl, Bata
Comfit, Bubblegummers, marie clarie, North Star, Power, Naturalizer, Footin,
Weinbrenner
PRODUCT LINE
Women:
Accessories- Handbag, Wallet and clutch
Footwear- Slippers, Wedges, Heels, Flats, Closed shoes, Ballerinas, Loafers,
Dress, Boots, Casuals, Sports (lifestyle and running), Sandals
Men:
Accessories- Bags, Wallets, Shoe care and Socks
Footwear- Casual shoes, Loafers, Boat shoes, Sneakers, Slip ons, Formal
shoes (slip on and lacedup), Outdoor (hiking, flip flops), Sports (running
and outdoor)
Kids:
Shoes, Sandals, School shoes

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 SWOT ANALYSIS:
 Strengths-
 Worldwide Presence in over 70 countries and production facilities in
27 countries.
 Benefit receivedfrom link to the international organization for back-
office systems, product innovations and sourcing.
 Found in all the metros, mini-metros and towns.
 Sells through over 1200 retail stores in India and 5000 stores
worldwide.
 Employs more than 6800 people in India and 40000 people world
over and over 30,000 dealers.
 Excellentadvertisingandbrand presence.
 Weakness-
 High cost for brandprotection.
 Intense competition in the footwear segment means limited scope to
overhaul market share.
 Opportunities-
 People now look towards buying footwear as a blend of fashion and
comfort, so now has an increasingmarket size.
 Bata has an opportunity to create a separate division for tacklingthe
rural markets in emerging nations.
 Global expansion in the premiumfootwear section.
 Threats-

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 Intense Competition from other leadingfootwear brands.
 Commoditization if fashion footwear not differentiatedwell.
 COMPETITORS ANALYSIS:
1. Liberty:
Stores Visited: Shastri Nagar, Navyug Market
Basic price range- Rs 249 to 7999
For men- Rs 1099 to 1199
For women- Rs 599 to 2100
 Wide Reach with 150 distributors, 350 exclusive showrooms and more
than 6000 multi-brandoutlets.
 Human-Tech Centres i.e. Liberty is high in Research and
Development.
 Old EstablishedBrandwith huge popularity, among the top 5 leather
footwear Manufacturers in the world.
 Good advertisingand brandingthrough TVCs and print ads.
Has popular sub-brands like Coolers, Force10, Senorita, Gliders.
2. Metro:
Stores Visited: Opulent Mall, Shirpra Mall
Price range:
Basic range- Rs. 2000 to 4500
For women- Rs 490 to 10,000
For men- Rs 973 to 25,000
• A Strong Indian Brandwith Strong Values.
• In house Private Labels for affordability.
• An assortment of all well known shoe brands found in store.

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• It has a countrywide network of exclusive Metro showrooms at more
than 70 prime locations across 30 plus cities in India.
• Strong Focus on innovation.
• Advertisingand brandingby roping in celebrities.
3. Woodland:
Stores Visited: Gaur Central Mall, Opulent Mall
Price range:
For men: Rs 295 to 5999
For women: Rs 1595 to 4295
 A strong differentiator of beingan outdoor and adventure brand
 Focus on Innovation with newer sturdier products
 Excellentadvertisingandbrand buildingthrough print ads and TVCs
 350 exclusive stores worldwide. Presence in more than 3000 multi-
brand outlets in a number of countries
 Production facilities in 10 countries
 To be known as an outdoor needs fashion specialist.
 Since their product line has few similarities to Bata and even the price
range of the brand is a little high which does not allow every person
to buy its products.
 Women’s range is also not that deep and wide. Is a major
competition of Weinbrenner.
4. Reliance Footprints:
Stores Visited: Opulent Mall
 It is Indian retail chain with 900+ stores in 80 cities in India.

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 Hyper market with 95000 markets with tailoring, shoe and watch
repair, laundry.
 It owns various private label brands.
 it has strong distribution network- 1600 channels in villages.
 Strong backing of the parentcompany.
 CORE STRENGHTS OF THE COMPANY:
 It is Indian retail chain with 900+ stores in 80 cities in India.
 Hyper market with 95000 markets with tailoring, shoe and watch
repair, laundry.
 It owns various private label brands.
 It has strong distribution network- 1600 channels in villages.
 Strong backing of the parentcompany.
 Sourcingdirectlyfrom farmers; no middlemen could earn more profit
as number of farmers will increase five times in next 5 years.
BATA CHILDREN’S PROGRAM
 The Bata children’s programwas launchedin 2010 to bringall Bata
community initiatives focusedon helpingdisadvantagedchildren
under one roof, allowingfor greater impact and development.
Currentlythe program has carriedout more than 100 initiatives in
over 2 countries , with the help of 1,000 volunteers , reachingout to
25,000 needy children.
 The Bata children’s programindependent, volunteer driven program
backed by the Bata children’s foundation and the Bata shoe
organisation.
 The activities are mainly under 4 domains-

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o Education for the next generation.
o Children's health and safety.
o Livingin a sustainable world.
o Skill development.
 Their volunteers have also taken part in community based polio
vaccination andmalaria prevention campaigns andregularly
encourage children tomaintain good health through the organisation
of ‘sports day’ and the distribution of sport shoes to all the children.
 PESTEL ANALYSIS
POLITICAL:
• Department of Industrial Policyand Promotion (DIPP ) provides a
comprehensive scheme for modernization andtechnology up gradation in
all the segments of the Leather Industry. Here, financial assistancewill be
provided to the extent of 30%, of the cost of plant and machineryfor SSI
and 20%, of cost of plant . machineryfor other units (i.e. non/small scale
units) subjectto a ceilingof Rs. 50 lakh for both categories for technology
up-gradation/modernization and/or expansion.
• GOI announcedcut in excise duties of footwear products in the budget
for financial year 2015-2016
• Governmentinitiatives to attract foreign directinvestment
ECONOMIC:
• Rising disposable income and consumer increasingspending
• Competitive Landscape- Bata India Ltd remainedthe leader in footwear
with a retail value share of 8% in 2015

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• Footwear is expected to perform strongly over the forecast periodwith a
constant value CAGR of 7% growth and sales expected to touch Rs 860
billion by 2019
•The latest trend show a compound annual growth rate of about 15% and a
total market share of Rs. 26,300 crores
SOCIAL:
• Consumer attitudes and opinions changingfavorablytowards branded
shoes. They prefer buying a relativelyexpensive shoe rather than the one
which is cheap with less durability.
• Due to NGO’s and social groups the importance of human life, working
conditions, or work ethics and health of the workers have increased.
• With various schemes promoting Primaryand secondaryeducation, more
students are going to be enrolledin schools and colleges, providingthe
footwear industries.It will also increase per capita income due to increased
employment.
TECHNOLOGICAL:
• In-house Design Studios incorporatingstate-of-the-artCAD systems
having3D Shoe Design packages that are intuitive and easy to use
• Many Indian footwear factories have also acquiredthe ISO 9000, ISO
14000 as well as the SA 8000 certifications
• Social media systems becoming increasinglypopular has resultedin
buyers shiftingtowards E-Commerce websites for value deals and saving

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time. Other policies like 30 day replacement"guarantee allows peace of
mind
• Many companies are usingdigital media for their product advertisingand
sponsoringat major events organizedin India
• Breakthrough productinnovations enhancingcomfort, agilityand
durability
ENVIRONMENTAL:
• Reliable supply of resources in the form of rawhides andskins, quality
finishedleather, large installedcapacities for production of finishedleather
& footwear, large human capital with expertise and technologyease, skilled
manpower and relativelylow cost labor, proven strength to produce
footwear for global brand leaders and acquiredtechnologycompetence,
particularlyfor mid and high priced footwear segments
• India offers a huge consumption market
LEGAL:
• FDI (Foreign Direct Investment):
LiberalizingFDI was another important part of India's reform, driven by
belief that this wouldincrease total volume of investment in Indian
economy
• Export Growth:
Adjustment assistance scheme to provide enhancedexports creditand
guarantee corporation (ECGC) cover at 95%, to badly hit sectors

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• The loweringof value addition norms under DFRC scheme from 33% to
25% wouldbenefit the exporters of leather goods includingleather
footwear
•Fundingis availableto enable tanners to modernize manufacturing
facilities in footwear sector. Machineryalso benefits from duty
free/concessional importregulation
• There is concessionalrate of interest on export credits to mitigate the
effects of rupee appreciation which has ledto tightening of credit.
 IMPORTANT FIGURES AND FACTS:
FOR GURGAON SECTOR 17 STORE:
 Sales per Sq. Ft. - 13.9 includingstock area.
 Unit per transaction – 1.72.
 Average unit per transaction- 1.62.
 40 customers per day.
PARTICULARS 2017 (INR million
rs.)
2016 (INR million
rs.)
Total Assets 19,225.97 17303.89
Total income 25438.87 24753.15
Total expenses 22,886.43 22533.73
Profit for the year 1587.48 2175.95

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 CONTROLLING:

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 OUR OPINION:
 After going through the history, present and how the organization works,
in terms of managementand manufacturing, Bata has been working in
the right direction.
 The means of controllingthat the company is using is also apt. Bata
follows strict protocol in as well as outside the store and it's management
and staff.
 The company has various forms of manufacturingunits; in-house as well
as they outsource their work to the trusted manufacturers andmaintain
strict quality standards.

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 The company not only serves its customers but also plays a major role in
the society as well (Children’s program).
 After going through all the data that we’ve collected, what we think is-
Bata believes in keeping its customers happy, the organization believes
highlyin customer loyalty.
 Being such an old organization, Bata is a brand people trust blindlyand
serve in India as a lifestyle brand.
 Its products are associatedwith comfort, style and uniqueness.
 The management has worked hardon asset managementand reducing
their liabilities butthe profits for this year are less than last year due to a
sudden change in the taxation system of India and also last year's
pending taxes.
 The main aim of Bata is to produce and sell best quality footwear at
affordable price. Bata focuses a lot on its organization's culture which is
reflectedin its brand image as well i.e. trustworthiness and
belongingness.
 SOURCES:
 BATA annual report2016-2017
 Bata Employee Guidelines
 Bata Orientation Manual 2017
 Bata TrainingManual 2017
 respective websites of the brands mentioned in the competitor's
analysis.