Case Study-Bata Ltd.Class MMM VSub:- INTERNATIONAL MARKETINGGroup Member Name Roll No.Mahesh Mhaske 35Anand Sachade 47Jyothiraj Nair 38Salil Hardikar 17Pallavi Guhagarkar 15

Bata Ltd-Founded in 1894

The Bata family's ties to shoemaking span more than two dozen generations in the year 1580 Czech village of Zlin.

In 1894, the family began to make transition from cobblers to industrialists.

Same year, Tomas G. Bata, Sr., along with his brother Antonin and sister Anna, borrowed 800 florins,(approx. $350)from their mother and launched a shoemaking business.

Bata Ltd-Founded in 1894They rented a pair of rooms, acquired two sewing

machines on an installment plan, and paid for their leather and other materials with promissory notes.

They produced stitched, coarse-woolen footwear. Within a year, the business was successful enough to enable the Batas to employ ten people in their factory, and another forty who worked out of their own homes.

In the same year, 1895, Antonin was drafted into the military and Anna quit the business to get married, forcing Tomas to assume complete control of the venture. He was just 19 years old.

As war swept across Europe in 1939, Tom Bata Sr. was faced with a difficult situation.

Because of the Nazi invasion of Czechoslovakia and the uncertain future engendered by the resulting occupation, Tom Bata Sr., sought to preserve his father's business by abandoning his Czechoslovakian operations and emigrating to Canada with a hundred of his managers and their families.

Bata operates 63 companies in various industries but footwear remains the core business with 60 million pairs sold per year in more than 30 countries.

Canada's government issued very conservative voluntary guidelines on new investments in South Africa. As a result, Bata sold its holdings in South Africa in 1986.

Bata also faced problems trying to get back into Slovakia. The problem was that the Czech and Slovak governments wanted compensation for the factories, but Bata felt the factories were still his.

Policies

The key to Bata's success has traditionally been a low-cost manufacturing base tied to an extensive distribution network

Bata not prefers export production; when possible, it chooses local production to serve the local market rather than imports!

Healthy competition in global market

1999To adjust to the market evolution Bata undertakes

a major reorientation from manufacturing to designing, marketing and distribution.

Bata brought in Jim Pantelidis to assume the CEO position. Pantelidis’s background was in retail gasoline sales

Pantelidis instituted a plan to develop regional shoe lines, as opposed to lines created for individual countries. In addition, he wanted to create economies of scale by building regional infrastructures.

The goal was to use the regional infrastructures to position the Bata brand on a global basis.

2001The tenure of Pantelidis lasted just two years.Thomas G Bata, founder’s grandson becomes the

Group’s chairman.Bata began to reorganize the company, essentially

running the business out of SwitzerlandA 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

Bata's 4 Business Units: Bata Europe, LausanneBata Asia Pacific-Africa, Singapore Bata Latin America, Mexico Bata North America, Toronto

2002 As 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 designs.

2004

New steps in China with the opening of the Bata procurement centre in Guanzhou and a distribution partnership for the opening of Bata retail stores.

2006

Start of the 262 acres Riverbank township construction to modernize the Batanagar factory complex, near Kolkata. It is expected to be completed by 2011 with 2500 modern housing for employees, a large hospital, a school, an IT park, a hotel and residential flats 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.

2007

Communist verdict against Jan A. Bata overturned

Tie up with Nike for franchisee in Bangladesh

BATA TodayToday, BATA operates in 50 countries across five

continentsOne million customers per dayRuns 40 production facilities across 26 countriesEmploys more than 40,000 people. Operates 5000 retail stores.Bata India, with 1,250 stores, is the largest company in

the Bata tree in terms of shoe sales and the second largest in terms of revenues.

Since the day it was founded over 100 years ago, Bata has sold more than 14 billion pairs of shoes—more than the number of human feet that have walked the earth.

Bata’s popular brands include Marie Claire, Dr Scholls and Hush Puppies.

R & DBata operates 5 shoe innovation centers (S.I.C).

Research is conducted into the application of new technology, materials and design for shoe comfort features.Each S.I.C has a product focus to supply complete packages of services for the manufacturing and marketing of innovative shoes.

Italy:         Bata Premium Collection

Canada:     Athletic footwear Mexico:     Children’s shoes Indonesia: Affordable footwear for tropical climates China:      Fashion and casual shoes

R&D

In each S.I.C, international designers and technicians conduct advanced product research and establish strict quality control procedures. The focus is on introducing new and exciting products that are competitively priced and give the best value to customers.

Always ahead in new designs, new features, new products. A relentless search will continue for better quality and pursuit of excellence.

QuestionsIs the positioning strategy right?Today are they market driven or

manufacturing driven? Are they changing enough with the

competitive world?Are the product ranges and pricing strategy

enough to beat the global competition?

“Customer is our Master”