Powerpoint presentation on Bata Limited

1. BATA LIMITED
Abhishek Chaudhry
Anushka Jain
Mohd Sahil Zaidi
Krati Jain
Akshit Gupta
Debajyoti Maitra

2. HISTORY OF FOOTWEAR INDUSTRY
• It is probable that the first shoes were worn by ancient man in the Ice Age,
around 500,000 years ago, out of necessity to protect against the harsh climate.
• In Mesopotamia, (c. 1600-1200 BC) a type of soft shoes were worn by the
mountain people who lived on the border of Iran.
• Around 1000 AD – Shoes and sandals become commonplace across Europe, but
they were often crude and hard to wear for long periods of time.
• 1790 – English inventors introduced shoelaces for the first time.
• Till1883 no machine could attach the upper part of a shoe to the sole. This had to
be done manually. ( J.E Matzeliger- machine for automated production of shoes.)

3. • 1917 – First successful sneakers (canvas top design with rubber sole) started being sold in United
States.
• 1980 – Athletic shoes that were first introduced in early 20th century became widely popular across the
world.
Footwear Industry in India
• Valued at USD 4.75 million
• 2.1 billion from 22 billions pairs per year of global volume of footwear are produced in india (Approx.
9%)

5. ORIGIN OF BATA
• INCORPORATED AS BATA SHOE COMPANY PRIVATE LIMITED IN 1931, THE COMPANY
SET UP INITIALLY AS A SMALL OPERATION IN KONNAGAR (NEAR CALCUTTA) IN 1932
• THE COMPANY WENT PUBLIC IN 1973 WHEN IT CHANGED ITS NAME TO BATA INDIA
LIMITED
• TODAY, THE COMPANY HAS OPERATES OVER 1200 STORES PAN INDIA
• IT ALSO CATERS TO MILLIONS OF CUSTOMER TO ITS URBAN WHOLESALE DIVISION
22,000 DEALERS
EVOLUTION
• THEY STARTED WITH SELLING BLACK PAIR OF SHINY SHOES AND WHITE PT
AND PADDED SLIPPERS FOR THE ELDERS TO NOW FASHIONABLE AND
"SURPRISINGLY BATA"- THE JOURNEY HAS BEEN LEGENDARY.
• INITIAL ADVERTISEMENTS OF BATA FOCUSED ON UTILITY OF THEIR PRODUCT.
THOUGH, FASHION ALSO MADE APPEARANCE HERE AND THERE.
• SINCE THE EARLY 2000S, BATA HAS BEEN FOCUSING ON CATERING TO THE
CAPTURING THEIR IMAGINATION WITH AFFORDABLE PRODUCTS
• BATA GOT HUSH PUPPIES TO INDIA IN THE EARLY 2010. IT WAS ONE OF THE
TURNING POINTS IN TERMS OF EXPANDING THE COLLECTION OF BATA AND
SUBSEQUENTLY OTHER BRANDS ALSO COME ON BOARD.

6. • In 2018, Bata India concentrated their efforts massively into making people realize that they are
realize that they are a brand to check out when it comes to fashionable footwear
• It led to a revamp in their branding where they roped in Kriti Sanon and Sushant Singh Rajput
• Bata has started naming all its recent campaigns around hashtags like #SurprisinglyBata,
#ComeAndBeSurprised to populate the brand’s social media presence
The journey

7. PRODUCT PORTFOLIO
Bata has had a huge product portfolio in terms of the large variety of shoes,
sandals and accessories that it offers and the consistency they promise
Product line
Women
• Accessories: Handbag, Wallet and
• Footwear: Slippers, Wedges, Heels, Flats, Closed shoes, Loafers, Boots,
Sports(lifestyle and running), Sandals
Men
• Accessories: Bags, Wallets, Shoe care and Socks
• Footwear: Casual Shoes, Wedges, Loafers, Boat Shoes, Sneakers, Formal
Shoes (Slip or laced up), Sports( running and outdoor)
Kids
Shoes, Sandals, School shoes
Famous Brands– Hush Puppies, Naturalizer, Scholl, Power, North Star,
Mocassino, Marie claire, CAT, Bata.

8. PORTER’S FIVE FORCES MODEL
w Entrants
duction- Economies of scale, costlier for new entrants as there is a
ss production and firms with large capacities can take advantage.
ferentiation- Different types of shoes are required, this makes it
t for new entrants.
l requirement- Makes it difficult for new entrant, high expenditure
h capital req.
can do- Economies of scale, provide differentiated product.
Bargaining power of Suppliers
Less control over price- High number of suppliers, hence choice available in high.
Standardized R.M.- Product provided by suppliers is standardized, easy substitute available.
No substitute for prod. for suppliers for shoe industry, making it stronger for suppliers.
What BATA can do- Buy RM at low price, less switching cost, can have many suppliers at one
different locations.

9. Power of Buyer
suppliers>No. of firms in shoe industry, so customers have less choice.
t differentiation is high- Same prod. may not be available everywhere
hey cannot switch easily.
of prod. is important for buyers hence less price sensitive, hence less
ing power of buyers.
ATA can do- Focus on product differentiation and quality, use
mies of scale for cost advantage and sell to low income consumers.
Threat of substitute product or service
Less substitute available in terms of other brands, low quality in low price, low economies o
hence a costly affair.
High quality means high price, which is rarely available, customers can’t switch easily to ava
substitute.
What BATA can do- Produce good quality at low price, product differentiation should be
maintained to retain customers.
Rivalry Among Existing Firms
Overall competition is low as compared to other industries.
Firms fight for the market share and hence its ground of large rivalry.
Fixed costs are high within the industry, this makes the push the produce of full capacity,
price decrease when demand decrease hence price sensitivity.
What BATA can- Differentiating the product, actions of competitors will have less effect,
BATA can also focus on gaining new customers rather than for existing companies.
Porters Five Forces (continued)

10. BATA AND ITS COMPETITOR’S STRATEGY
Bata entered in 1931 in India, with affordable canvas shoes, channel that they used is multi-channel
marketing.
Nike entered in 1931 in India, and it entered after 7 year licensing agreement with Sierra Industrial
Enterprises for their sales, with aspirational feel of “Just Do It”.
Paragon from Kerala entered in Indian market in 1975, with production capacity of 1500 pairs a day,
and company’s is major strength is its staff and distributors.
Woodland entered India in 1992, with a new line of Outdoor Adventure sports, shoes that are needed
by adventurists.
Liberty was found in India in 1954, and started with 4 pairs a day. The demand for quality shoes with
a reasonable price bracket was the order of the day and liberty dutifully slipped itself into the void
mid-segment category of the Indian market.

11. STRATEGY
The company’s strategy encompasses the following:
• Product is the key to success
• Mutli-channel retail strategy: Maximum reach (Through their Own store, Franchise partner
store, multibrands outlet, and E-commerce)
• Bata not depend on traditional products, it change their strategy & now Bata introduce new
product lines and new brands (North star, Hush puppies, , Scholl, Power etc.)
• In the new product pricing strategies, Bata is using the market penetration pricing to develop
their new product
• Focus on specialised brands: with specialised brands like Hush Puppies and FOOTIN, Bata
entered the niche footwear market

12. PESTLE ANALYSIS
POLITICAL FACTORS- ACCESS TO FAVORABLE GOVERNMENT POLICY.
GOVERNMENT INITIATIVES TO ATTRACT FDI.
STABLE POLITICAL CLIMATE AND EXPANDING TRADE POLICIES.
ECONOMIC FACTORS- RISING DISPOSABLE INCOME AND INCREASED CONSUMER SPENDING.
RAPID GROWTH OF DEVELOPING MARKETS
UNEMPLOYMENT, WAGE RATES, TAXATION, INFLATION AND INTEREST RATES.
THE INDIAN FOOTWEAR MARKET IS EXPECTED TO BE WORTH RS.475 BILLION BY 2025 REPRESENTING A
COMPOUNDED ANNUAL GROWTH RATE OF 7%
SOCIAL FACTORS- CULTURE, RELIGION, LIFESTYLE AND PREFERENCES OF CONSUMERS.
CHANGE IN CONSUMER ATTITUDES AND OPINIONS.
TECHNOLOGICAL FACTORS- 3D PRINTING.
AUGMENTED AND VIRTUAL REALITY.
USE OF DATA COLLECTION INTEGRATION TECHNOLOGY.
ENVIRONMENTAL FACTORS- RELIABLE SUPPLY OF RESOURCES, CLIMATE CHANGE.
PLANNING AND CREATING ENVIRONMENTAL AWARENESS CAMPAIGNS.
INDIA OFFERS A HUGE CONSUMPTION MARKET.
LEGAL FACTORS- IMPROVING EMPLOYMENT LAW IN DEVELOPING COUNTRIES.
STRICT ADHERENCE TO SAFETY RULES AND REGULATIONS.

13. 2.Excellent positioning as fashionable yet
affordable brand.
Strong distribution network and worldwide
presence over 70 countries.
Wide range of products across all age
groups.
Employs 6800+ people in India and
approximately 40000 worldwide.
Excellent Market Penetration.
Weaknesses
Intense competition among footwear
brands, thus eroding Market share.
Low pricing tends to create a wrong
perception among consumers with respect
to quality of products.
High cost for Brand Protection.
Opportunities
Growing rural market which would bring in
additional revenues.
Footwears are now considered a fashion
statement, thus providing opportunities to
increase market share.
Global expansion in Premium footwear
Threats
Footwear industry is susceptible to
duplicity to a large extent.
Commoditization if fashion footwear is not
differentiated well.
SWOT

14. INDUSTRY GROWTH AND PROFITABILITY HISTORY
• Global Footwear Market is expected to garner
$371.8 billion by 2020, registering a CAGR of
5.5% during the forecast period 2015 - 2020.
Source -https://www.alliedmarketresearch.com/footwear-

15. FINANCIAL HISTORY OF BATA
TOTAL INCOME TOTAL OPERATING PROFIT
Source - https://www.moneycontrol.com/financials/bataindia/profit-loss/bi01

16. COMPARISON
NIKE
PUMA
Adidas
Source-
Adidas https://www.marketwatch.com/investing/stock/addyy/financials
Nike https://www.marketwatch.com/investing/stock/nke/financials
PUMA https://finance.yahoo.com/quote/PUM.DE/financials/

17. CURRENT SCENARIOS OF BATA
• After registering a 2-3 per cent growth in sales
volume, Bata India is expecting a surge in sales of
footwear.
• In the coming years as it eyes scaling up its store count
and tapping more upcountry markets.
• In the last fiscal year, the company sold 47.25 million
pairs which helped it retain market leadership
• It is estimated that around 32 million pairs are sold in
India annually, both in the organized as well as
unorganized space. Bata has a market share of 21.48 per
cent.
• Currently, it has around 1,415 retail stores of which
around 150 are franchised.
• Sales from such stores account for around 85 per cent of
its business and the rest comprises of sales from e-
commerce channels as well as multi-brand outlets.
• It owns various private label brands.
• Ambassador (classic men's shoes)
• Atletico (urban shoes)
• Bata Comfit (comfort shoes)
• Bata Flexible (comfort shoes)
• Insollia (comfort/women's shoes)
• Marie Claire (women's shoes)
• SunDrops (women's shoes)
• Baby Bubbles (children's shoes)
• Patapata (flip flops)

18. COMPETITORS ANALYSIS:
LIBERTY
• 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-brand outlets.
• Human-Tech Centers i.e. Liberty is high in Research
and Development.
• Old Established Brand with huge popularity, among
the top 5 leather footwear Manufacturers in the
world.
METRO
• 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 Brand with Strong Values.
• In house Private Labels for affordability.
• An assortment of all well known shoe brands found in store.
• 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.
• Advertising and branding by roping in celebrities.

19. COMPETITORS ANALYSIS:
WOODLAND
• Price range: For men: Rs 295 to 5999
• For women: Rs 1595 to 4295
• A strong differentiator of being an outdoor and
adventure brand
• Focus on Innovation with newer sturdier products
• Excellent advertising and brand building through
print ads and TVCs
• 350 exclusive stores worldwide.
• Presence in more than 3000 multiband 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
RELIANCE FOOTPRINTS
• 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 parent company.

20. RECOMMENDATIONS
• Improve the company’s online and Social Media presence.
• Focus on Kid’s category to drive further growth.
• Increase the range of product offerings in Sports category.