Bata India is the largest manufacturer and retailer of footwear in India. It was established in 1931 and has since established a leadership position in the Indian footwear industry. Bata operates retail stores across India and produces footwear for men, women, and children at multiple manufacturing facilities. It sells approximately 50 million pairs of shoes annually through its network of over 1,400 retail stores. While Bata targets all income segments, it has been losing market share to cheaper Chinese imports in the lower income segment. It focuses on catering to the middle and upper classes through its own brands like Hush Puppies. Bata utilizes various marketing strategies like celebrity endorsements, print and television advertising, and seasonal collections to promote its brands
Bata (also known as Bata Shoe Organization) is a family-owned global footwear and fashion accessory manufacturer and retailer with acting headquarters located in Lausanne, Switzerland. Organized into three business units: Bata Europe, based in Italy; Bata Emerging Market (Asia, Pacific, Africa and La tin America), based in Singapore, and Bata Protective (worldwide B2B operations), based in the Netherlands, the organization has a retail presence of over 5200 retail stores in more than 70 countries and production facilities in 18 countries.
Internship report-on-marketing-mix-of-Bata-shoe-company- Main part.Rizwan Khan
The purpose of this report is to analysis the marketing mix strategy of Bata Bangladesh. Bata business policy is the segmentation of retail outlets according to allover country. Bata offers a number of product lines to the prospective consumers in the existing market as depend on culture and customer. Bata Shoe Company is the market leader in the footwear industry since its operation in Bangladesh.
Bata (also known as Bata Shoe Organization) is a family-owned global footwear and fashion accessory manufacturer and retailer with acting headquarters located in Lausanne, Switzerland. Organized into three business units: Bata Europe, based in Italy; Bata Emerging Market (Asia, Pacific, Africa and La tin America), based in Singapore, and Bata Protective (worldwide B2B operations), based in the Netherlands, the organization has a retail presence of over 5200 retail stores in more than 70 countries and production facilities in 18 countries.
Internship report-on-marketing-mix-of-Bata-shoe-company- Main part.Rizwan Khan
The purpose of this report is to analysis the marketing mix strategy of Bata Bangladesh. Bata business policy is the segmentation of retail outlets according to allover country. Bata offers a number of product lines to the prospective consumers in the existing market as depend on culture and customer. Bata Shoe Company is the market leader in the footwear industry since its operation in Bangladesh.
Ajanta shoe company faced a tough competition after opening up of economy before that it was enjoying the situation of exceeding demand over supply in the economy.
The company manufacture different types of footwear for men, women and children. Quality and durability of the product is good which were sold at lower prices. In long run consumer will find superiority of the product.
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2. BATA INDIA
The Company was incorporated in the year 1931 as Bata Shoe Company Pvt. Ltd. in Konngar,
West Bengal, which was then shifted to Batanagar. Batanagar was the first manufacturing
facility in the Indian shoe industry to receive the ISO 9001 certification. The Company went
public in 1973. They changed their name to Bata India Ltd. Over the years, Bata India has
established a leadership position in the footwear industry and is easily the most trusted name
in branded footwear. Bata India operates primarily in two main segments, namely, Footwear
& Accessories (F&A) and Surplus Property Development (SPD). While F&A division is
engaged in manufacturing and trading of footwear and accessories items through retail and
wholesale network, SPD division is involved in the development of real estate at Batanagar in
West Bengal. Through its production facilities in West Bengal (Batanagar), Bihar (Patna and
Hathidah), Haryana (Faridabad), Karnataka (Bengaluru) and Tamil Nadu (Hosur), Bata India
produces some of the country’s well-known brands. It sells approx. 50 million pairs of
footwear every year and its retail network of over 1,400 stores gives it a coverage that no other
footwear company can match. Approximately 99% of Bata India’s revenue comes from the
domestic market.Bata was honoured with Most Admired Brand of the year 2006-07 in
Footwear category. They have been rated as one of the Top 10 super brands in India and
awarded Super Brands Award on April 12 2007.
FINANCIAL ANALYSIS
3.
4. MARKET SEGMENTATION:
INDIA A (14%, includes high disposable income group)
INDIA B (50%, includes people middle class and middle
class group)
INDIA C (36%, lower income class group)
DEMOGRAPHIC SEGMENTATION:
The target market for Bata is all the class of the society
i.e. lowers, middle and the upper. Though, Bata is minimizing itself in selling footwear to lower
segment, as Chinese products have taken over the market completely. The in-house brands make
it possible for Bata to cater to its upper and middle class segment. Bata cater to the needs of male,
female and children in equal proportion. The school shoes which Bata sells are most prominent
and sell the most. All Bata stores reflect the new ideology like selling premium brands like hush
puppies and Marie Clarie etc. As for now, ladies' shoes is the main revenue earner, contributing
30% to the company's revenue, followed by men's shoes, children's shoes, school shoes and sports
shoes. The stores offer fresh collections and are visually stimulating. Thus we can say presently
their target customer base is the entire market segment.
GEOGRAPHIC SEGMENTATION:
Bata products are made keeping in mind people & their choices from different parts of India as it
has positioned itself as a truly Indian footwear brand which caters the needs of all Indians all across
the country. Bata is present across the country through more than 1400 stores. It has successfully
placed itself as an Indian product. Stores are well available throughout the country. It sells footwear
according to the season as well. They have specialized shoes for monsoon, summer, winter etc.
Bata stores are spread throughout the country. This means Bata is a product for all Indian.
5. PSYCHOGRAPHIC SEGMENTATION:
1. Bata’s target group includes all the three sections of the society .They like the brand
because it’s aptly priced and has got a variety of products under its name.
2. Bata offers quality products at reasonable rate which makes it a clear favorite among
the mass.
3. Shoes for all seasons, age groups and gender.
BATA STORE LOCATION:-
1. Bata store ( no 505, MS Towers, Hosur Road Bangalore)
2. Bata ( Shri Nidhi, 27th main road, 2799 HSR layout)
3. Bata (5th Main Road, 27, Koramangala)
4. Bata shoe store ( shop no 23, ground floor, total mall, Madiwala Bengaluru)
5. Bata showroom( 70-1A, Sarjapur Main Road, Bengaluru)
6. Bata shoe store( shop no 415, 2nd Main, 1st cross, RT Nagar Bengaluru)
7. Bata shoes Neeladri Nagar, Karuna Nagar, Electronics City Phase 1, Electronic
City, Doddathoguru, Karnataka 560100
PRICING STRATEGY
BATA had fantastic response from the market due its affordable and mass market pricing. Anyone
can purchase Bata products easily. Bata uses psychological pricing as its pricing strategy. Bata
generally prices a product to the nearest lower “9” digit figure of the actual price. For example,
any commodity to be prices Rs.1000 is priced at Rs.999 to lure and attract more customers. Bata
started this strategy in terms of pricing its products long back, but it is still being implemented in
Bata Showrooms. Apart from this phenomenon, in general Bata prices its shoes very moderately,
and keeps them easily affordable, which is one of the key reasons for its growth. Off course, the
pricing then affects the premium customers and Bata cannot target the premium customers who
think of Bata as a mass market brand and not justifiable to their status. However, this is a conscious
call by Bata because it has some premium products like Hush puppies to drive margins, whereas
other products are mainly present to drive turnover and quantities.
6. MERCHANDISING STRATEGY
Bata India has completely overhauled its merchandising strategy, forming a team of 100
professionals for product design, procurement and merchandising. The product team meets its
counterparts in Europe every quarter to improve its international designs and customize it for the
Indian market. Bata India still continues to receive full support from Bata Brands S.A. to develop
the entire collection of all the brands.
ADVERTISING, SALES PROMOTION AND SEGMENTATION
STRATEGY FOLLOWED BY BATA
TAG-LINE: Bata taglines meant for individual products are the key components of
advertising. These tag-lines are modified according to demographic profile of consumers.
These appear on hoardings at every crucial & congested part of the cities in which Bata
retail stores are operating. Everybody understands and connects easily with these simple
one-liners like ‘Shoes for all’ , ‘The world moves on your feet’, ’Outdoor is yours’, ‘Get
comfortable today’,’ One world ,one Bata’.
7. PRINT ADS: Bata advertises its products just before launch of any new scheme. This
helps in setting up a platform for the new products brand in the minds of customers. The
ads are displayed on a full page in the leading newspapers which again is based on the
preference of the people. They also attach pamphlets of their ads along with the newspaper.
TV-ADS- Television is one of the best platforms to advertise one’s product. Bata being a
family brand, the ads are shown during the prime time slot so the entire family can see it
together.
ROAD SIDE ADVERTISING: Bata bill-boards are displayed on prime locations in
various cities as a brand building exercise.
CELEBRITY ENDORSER- Bata’s sale doubled as soon as they used Rani Mukherjee as
their brand endorser. At present vani Kapoor is endorsing the BATA brand.
SPECIALIZED SHOES: Bata has also launched a new specialized division — Bata
Industrials — to offer specialized footwear to various sectors – defense, automobiles,
metals, petroleum, construction and agriculture. “Bata Industrials is the world leader in
high performance safety shoes and has experience of this market segment and access to
world class technology, and knowledge on safety footwear.
NEW STORES:
To maintain its leadership position and growth, the
company is expanding and adding 200 new stores in next 2
years. These stores will operate in a four-tiered retail format
under a new retail model - Up-market Flagship Stores, Smart
and Trendy City Stores, Super Stores and Traditional Family
Stores. This will help the company service better in places
where currently it does not have presence.
8. RETAIL SHOPS: These are the places where majority of the purchasing decisions are
made. Bata stores are now spacious with over 3,000 sq. ft. of retail space; some are even
larger than 10,000 sq. ft.
BELOW THE LINE SALES PROMOTION: Below the line sales promotions are short-
term incentives, largely aimed at consumers. The different types of strategies adopted by
Bata in this respect are discussed below-
PRICE PROMOTION: Price promotion refers to ‘price discounting’. It is done by
two ways, namely
DICOUNTS: A discount on the normal selling price of the product. For example Bata
a family footwear brand with showrooms all over the city, is offering discounts ranging
up to 30% on shoes, sandals, chappals, ladies footwear, kid’s footwear and men’s
footwear. This offer is available at all Bata footwear showrooms in Hyderabad.
STOCK CLEARANCE SALE: Bata often has ‘stock clearance sale’ which helps in
boosting up the sales figure.
1. GIFT WITH PURCHASE: Bata introduces Gift Vouchers – Giving vouchers are a first
of a kind initiative in the footwear retail industry, Bata India introduced it for the time,
“Bata Gift Vouchers”. These gift vouchers can be used in place of cash and are available
in various denominations to provide the convenience and choice to purchase a wide range
of footwear., Bata Gift Vouchers are targeted at three major segments – employee
incentives & rewards, business gifting and customer promotions. They are also very ideal
for customer promotions – loyalty reward points redemption, sales promotion & contests,
etc.
2. EXCHANGE POLICY: In case if a customer is not satisfied with the product he can
exchange it within 15 days provided the product is unused, clean and in their original state
of packing.
9. BRANDS OF BATA:
COMPETITION:
Bata has a 13.7 percent market share. It also has
to face tough competition from many organized
and unorganized sectors. Bata has overcome all
the competitors and well sustained with a good
market share .it has to watch the other
manufacturers and make a counter move to match
the competitors move.
Leading competitors are Lakhani Shoes, Liberty Shoes, Action Shoes, Woodland, Paragon
and Relaxo in organized sectors.
10. UNORGANIZED SECTORS: It has to face a major competition from
Chinese footwear market which is imported from china .because Chinese
footwear entered Indian market , Bata has to change its policy and also had
to face major financial loss which also led to fall of Bata’s market share to
10%.which was a major setback for Bata India. Bata then stopped
concentrating on lower segment (in which Chinese had an edge: low price) which led Bata
to concentrate on other segments like on premium brands also. Bata faces the most
competition from the ladies footwear division and that too from the local unorganized shoe
manufacturers and Chinese shoe makers.
STRATEGIES ADOPTED OVER TIME BY THE BRAND TO
TACKLE COMPETITION
If analyzed for the value that Bata was providing to its customers their value proposition may
be categorized as follows.
Reasonable quality at low or reasonable price.
Footwear for the entire family.
Footwear catering to various functional needs e.g. sports, casual footwear, formal-semi
formal.
Conveniently accessible outlets in various parts of the country.
Prior to entry of local players and the Chinese imports, some sort of social visibility could
also be associated with Bata, as it was one of the two major brands in the country then.
SWOT Analysis:
Strengths
Brand Image
Reasonable quality at low or reasonable price
Diversity with ranges in running, training, court, basketball, football and Outdoor
Footwear for the entire family
Conveniently accessible outlets in various parts of the country
Targeting all income segments
Nationwide retail network
11. Weaknesses
No continuity of leadership
No proper planning regarding Advertisement
No variety in Fashionable shoes
Opportunities
E-Commerce
Acquired, Partnership with small players
Entering new segments of Markets
Innovative Products
New mediums for advertisements
Threats
Customer Dissatisfaction
Price wars with competitors
Economic Threat
Changing in consumer preferences.
Bata has a sizeable brand advantage and a presence across price points, but faces
competition from imports and the unorganised sector.