INTRODUCTION

Our history and language are full of reference to shoes and chappals and the time honored craft

of show and chappal making. Shoemakers were the first craftsmen to establish guilds in the

middle-ages and through the builds societies of craftsmen within a common trade come a

standard of quality, which earned the shoemaker a well-established position in the community.

The quality and care the shoemaker has taken with his craft has earned him a place in the history

and Bata shoe organisation is proved to follow in this tradition of time quality craftsmanship.

Today Bata shoe organisation is truly ―Shoemaker and chappal maker to the world‖ and we

invite you to join us and learn a little about the long history of shoes and how they are designed

and constructed.

Primitive man made his own shoes from the skins of the wild animal he hunted and, where the

climate was cold, he tied or around his lower leg. Primitive men were for the most part, nomadic

and he bound his feet for protection against the bites of insect, often thorny forest flow and the

heat of the earth on the dry plains. How the primitive men bound his feet dependent on where

lived and this form the very beginning we see that shoes were used for protection but that to

some extent the environment, the weather and the land dictated style.

Thus, sandal was the earliest from of show made by a ―specialist‖ shoemaker. The early

Egyptians made sandals, which consisted of a sole head to the foot by single piece of leather,

which is circled the big toe. This from of sandal is called a thongs are still popular today in

certain parts of the world.

The Egyptian had an interesting custom, which indeed seems to be or origin of expression under

foot. The Egyptian painted or carved images of their enemies on the bottom of their sandals.

They believed, they could hurt their foe by treading on their image, hence the expression; to be

under foot‖

Early shoe design was often taken from nature and in addition to sandals the Egyptians also wore

a shoe within up turned toe model on the elephants tusk. The Mesopotamian used the same

design, but with a longer curved toe. Some believed that the Chinese might have originated the

curved toe design, as the boat with a peaked toe is quite common among the Mongols today.

The early Greeks where barefoot except in foul weather and it was not until the Hellenistic

period around 232 BC that going barefoot out of dears become a sign of slavery. At that time the

wearing of shoes signified that the wearer was free and beginning barefoot come to signify that

the person was a slaved. Early Greek shoes were made from one piece of leather, which was

drawn over the foot by a threaded throng and tied around the ankle.

The Romans carried their shoe style throughout the ancient world as the conquered. They

brought ―Roman Style‖ shoes to French and to Britain. The Moons who conquered the Spain in

the 8th

century (711 AD), introduced a beautifully – soft-dyed leather known as Cordovan. Their

shoes fit snugly and covered the foot and the ankle. They came to be called ―Babylonian‖ shoes.

Thus we see the different materials different regions of the known world. As people traveled,

traded, conquered, shoes style was carried from one region to another. The shoemaker became a

specialist, a respected, influential and need member of the society. Shoes and chappals where

made for specific uses, designed for specific climates and where often decorated to harmonies

with clothing style. Leather, wood and plant elements (rice stalk in China and palm leaves in

Egypt) where the primary materials utilized in shoe making. In Europe, however leather

remained an important part of the shoemaker craft.

SHOE AND CHAPPAL’S STYLING A REFLECATION OF

SOCIALOGICAL CHANGES:-

In Europe, during the middle age distinct periods of style emerged together with heavy

ornamentation. Shoes of style where, of course, restricted to the wealthy, but shoemakers,

together with other craftsmen, began to emerge as a kind of middle class between the ruling

novelty and the serfs. In the 10th

century there began a long period marked by increasingly

pointed shoes. There were wasted, and often featured embroidered stitching. In the 11th

century

the soft, painted oriental slipper become popular. It is believed that the crusaders probably

introduced the oriental slipper. The peasants of this period wore a wooden shoe called Sabot.

During several uprising against their landlords the peasants trampled their crops under foot as an

act of defense. Thus the derivation of the word ―Sabotage‖.

In the early 14th

century during the early renaissance period the pointed toe reached twelve

inches beyond the foot and was stuffed with whalebone. Men of this period held the toes of their

shoes with the chains, which were attached to greater at the knees. Following pointed toes the

style became that exaggerated width with the sides of shoes slashed and stuffed to give the foot

and extra wide appearance, usually at the toe. Next came the Chopine from Italy, a slipper with

dramatically elevated toe. Eventually, the hell and sole were cut separately and the sole was

reduced in height. The high heel, worn by both men and women, was introduced in the 16th

century. During the 17th

and 18th

century many styles came and went and a wide materials were

used.

THE FRENCH COURT OF LOUIS THE XIV dictated the shoe styles of the period, which

seemed to reflect what many people saw as the ―excess‖ of the court. In fact at one time, men‘s

shoes climb stairs backwards falling over their shoes. As a parallel development to ―dress shoes‖

this period also gap reached to the development of special military boots. The Hessian were will

know and the term ―Wellington‖ came to mean rubber boots in English speaking countries.

In the late 18th

century shoe style underwent radical changes as they reflected popular politics.

The French Revolution was followed by period of simplicity in shoe styles as people revealed

against the lavishness of the court. Sandals, heels – kless slippers and low-cut shoes were

adopted and the only acceptable decoration was a simple buckle.

This history of shoes very much a part of all history. In the beginning, necessity dictated style

and then though conquest, travel and trade, styles where exchanged among the people of the

world materials varied and decoration in footwear became popular to and luxurious.. Simplicity

then returned and shoes reflected the egalitarian ideas of the day. Style, decoration and variety

were to eventually return, of course.

Craftsmen shoemakers in single pairs produced one shoe; each cut, stitched and tracked by hand

in a time consuming, laborious method. The result; an expensive, custom-made pair of shoes

design in accordance with specifications and whims of a wealthy client, more often than not a

privileged member of a select segment of society.

The industrial revolution of the 19th

century was to bring about vast changes in the shoemakers‘

craft, transforming the art though mass production techniques into a rapid, highly automated,

mechanical process. For the first time in history, good quality people, thus achieving the long-

short-after dream.

In turn, the automation of the shoe industry gave reach to the modern fashion – oriented footwear

industry. As peoples basic demanded and sought after more specialized footwear; footwear for

sports, for leisure, for work, footwear that satisfied needs of both fashion and function. Today the

footwear industry, the assimilation of scientific methods and the findings of modern radical

research particularly in the realm of sports medicine in developing footwear in accordance with

the physiology of the human foot and the dynamics of the body in motion. Placed on reality.

Ever looking to the future with optimism. This is the golden profile of Bata India.

COMPANY PROFILE

Asia‘s largest footwear company strives to maintain its lead with an image of superiority,

professionalisms and round the clock efficiency. A visit to any factory or office in the country

bears testimony to that. Bracing to meet the 21st century, Bata is gearing itself with the latest in

technology and a forward-looking approach to human resource development. Staggering 16,000

people work at various functional centers in Bata India. While another 2,00000 are indirectly

employed.

The world of Bata India: There are four factories, at Batanagar near Calcutta now it is Kolkata, at

Faridabad in Haryana, Bataganj near Patna in Bihar and at Peenya in Bangalore. Taking stock of

them all means accounting for thousand of trained men and women, millions of pairs of footwear

on the production line.

The people –our assets: The Company firmly believes that giving its people the right

encouragement, yields incomparable rewards. Even with technology and progress man doesn‘t

take second place at Bata India. Emphasis is given to man management and every opportunity is

given so that people can grow with the organization. Each year a large number of regional,

national and international courses are held to train Bata employees. it is a Bata policy to provide

equal opportunity, to promote on merit and to stimulate it‘s people into thinking globally .always

abreast with current trends and technology, Bata India brings latest in line technology in factory,

and the workers to many all to mated industries where work force shrink in direct proportion to

their rate of technological thinking .Bata India keeps its employment levels steady.

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 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 divisionand

caters to millions of customers through over 30,000 dealers. Bata has the following brands

operating under its umbrella: Bata, Mocassino, North Star, Marie Claire, Bubblegummers,

Ambassador, Hush Puppies, Scholl, Comfit, Power, Sparx, Reebok, Weinbrenner, Naturalizer,

Bata and I. But the promotional campaign has to be designed only for the original and classic

brand ―Bata‖, which is about finding STYLE – that agrees with the consumers‘ tastes, meet their

diverse needs, meet their budget, and fulfill their well-being.

Product Attributes:-

Comfortable and Trendy Footwear

Easy to Maintain

Contemporary Styles with International Know-How

High Quality at affordable prices

Versatile products to suit each occasion

GROWTH STRATEGY

The organization is the world‘s largest manufacturer and marketer of footwear. It has 83

companies spread all over the globe both in developed and developing countries. The

organization is the leader in the use of modern technology and the latest management and

marketing techniques. Its 73 manufacturing units produce a vastly comprehensive line of

footwear from women‘s high fashion shoes to artic boots; men‘s dress shoes to popular sports

shoes for the children. It operates 6300 company owned stores all over the world. This includes

Bata family Athletes world Bubble gummers, Rizzi, Heyraud and Marie Claire stores. In addition

Bata has around 50 thousands retailers the combined production and sales total 270,000,000

pairs of shoes per year. The Bata shoe organization has 67 thousands employees on its roles

today. Bata limited; the world headquarters of Bata shoe organization located in Toronto is

manned by experts in manufacturing, marketing, finance, product development and personnel. A

work force that is available for training and guidance in all operations in the field.

Today Bata India has become a legend behind it‘s a sage of determination and pursuit of

excellence. A spirit of enterprise that has made Bata India a complex, multidimensional giant

ever at the service of millions of people in India. How did it all begin?

Today the largest footwear manufacturer is India. The biggest footwear market has wide

wingspan-it covers the entire length and breadth of the country. The company prides itself in

having your manufacturing units, two tanneries, and a number of ancillary units. Pursuing an

active policy of encouraging exports since 1935, Bata India exports the largest number of canvas

shoes from the country.

BRAND IDENTITY

The brand identity and position of Bata has been carefully crafted and painstakingly embedded

as a value proposition in the minds of consumers for generations. It certainly promises a lot of

value by virtue of consistent quality and positive word-of-mouth.

SLOGAN

NO ONE IN THE WORLD KNOW SHOES LIKE WE DO.

ONE BATA,ONE WORLD.

VISION AND MISSION

VISION:- Vision is that igniting spark that can inspire and energize people to do better the

focus of vision is to reach out hungrily for the future and drag it into the present. Bata India

today wishes to reposition itself as a market driven fashion conscious lifestyle. Focus on a

variety of customer groups.

MISSION:-A mission statement articulates the philosphy of the company with respect to the

business in specific and society in general once the mission statement of company is finalised

and adapted, it provides a readymade guideline to employees of the organisation about its

principles, policies and practices. Bata will provide its products and services to all the age groups

in the community will also provide the finest quality through customer involvement.

Bata India is the largest retailer and leading manufacturer of footwear in India and is a part of the

Bata Shoe Organization. The parent company Bata was founded by three siblings; Tomas Bata,

his brother Antonin and his sister Anna with a small inheritance in the town of Zlin,

Czechoslovakia on August 24, 1894. Initially known as Bata Shoe Company, it was one of the

world‘s first shoe ―manufacturers‖; a team of stitches and shoemakers creating footwear not only

for friends and local residents, but also for distant retail merchants.

Key Events:-

1905: Tomas Bata introduced mechanized production techniques that allowed the Bata Shoe Company to become

one of the first mass producers of shoes in Europe.

1914: The company had a significant development due to military orders.

1928: The company‘s head factory in Zlin was expanded as demand for the inexpensive

shoes grew rapidly.

1931: Bata Shoe Organization setup factories in Germany, England, The Netherlands,

Poland, France, Austria, Romania, Sweden, Switzerland, Egypt, Belgium, Finland,

Luxembourg, Hungary, Italy, Indonesia, Singapore and India.

1932: Tomas Bata died in a plane crash and control of the company was passed to his half-brother, Jan, and

his son, Thomas John Bata.

1939: Due to the outbreak of World War II Thomas Jan Bata decided to move Bata Shoe

Organization to Canada established the Bata Shoe Company of Canada.

By 1950: Bata was positioned as the world‘s leading footwear exporter. From its new

base in Canada, the company gradually rebuilt itself, expanding into new markets

throughout Asia, the Middle East, Africa and Latin America.

In 1970s, 80s and 90s: Bata continued to grow through its new, innovative strategies

guided by Bata‘s founding principles which focused on customers, marketing and

employees.

Today, Bata has a retail presence in over 70 countries across five continents, with a million

customers per day. It employs more than 40,000 people in its 5,000 retail stores, manages 27

production facilities. It is estimated that since the day it was founded over 120 years ago, Bata

has sold more than 14 billion pairs of shoes which is more than the number of human feet that

have walked the earth. The acting headquarters of Bata Shoe Organization is located in

Lausanne, Switzerland. There are 3 main Business Units: Bata Europe, based in Italy; Bata

Emerging Market (Asia Pacific, Africa and Latin America), based in Singapore, and Bata

Protective (worldwide B2B operations), based in the Netherlands.

BATA INDIA LTD

Bata is a name that needs no introduction to Indians. Incorporated as Bata Shoe Company Private

Limited in 1931, Bata India is the largest retailer and leading manufacturer of footwear in India

and is a part of the Bata Shoe Organization. In 1932, an experimental shoe production plant was

built in Konnagar, West Bengal with 75 Czechoslovak experts. Jan Antonin Bata then built an

industrial manufacturing city called Batanagar in South 24 Paraganas District in West Bengal in

1934, as well as other factories in Digha near Patna, and elsewhere it India, employing more than

7,000 people. Later Batanagar became one of the bigger suburban towns near Kolkata. The

Company went public in 1973 when it changed its name to Bata India Limited. In 1993, it

became the first manufacturing facility in the Indian shoe industry to receive the ISO: 9001

certification.

It is one of the largest footwear manufacturers in India and sells a wide range of canvas, rubber,

leather, and plastic footwear. Its retail network of over 1500 stores gives it a reach that no other

footwear company can match in India. The stores are present in good locations and can be found

in all the metros, mini-metros and towns. 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. It has 26 Wholesale depots, serving more than 500 wholesalers.

The company has a licensed capacity of 628 lakh pairs per annum spread across its five

manufacturing units at Batanagar (Kolkata), Faridabad (Haryana), Bataganj (Bihar), Peenya

(near Bangalore), and Hosur (Tamil Nadu). The company has two tanneries - one at Batanagar

and the other at Mokameghat (Bihar). The latter is the second largest in Asia. In total, Bata India

employs more than 12000 people.

Bata sells over 60 million pairs of shoes every year. South India is a major market for Bata, from

where it earns around 40% of its revenue. The company is the market leader in South, with 16%

share of the organized footwear market. Of the overall revenue, it derives nearly 85% through

retail networks, 14% from non-retail channels (dealers/institutional/industrial sales) and

remaining 1% through exports. Thus, the domestic market is the mainstay as far as revenues are

concerned.

Bata India is today traded on the Kolkata and Bombay Stock Exchanges. It has also consistently

outperformed the Sensex and broader Nifty year after year. For the first time in its history, Bata

India's Turnover crossed the coveted mark of Rs. 20,000 Million for the financial year 2013 by

achieving a total turnover of Rs.20, 984.1 Million. It also recorded a Net Profit of Rs.1, 907.4

Million for the year 2013.

INITIAL POSITIONING & SUBSEQUENT REPOSITIONING

Bata India was primarily known as a manufacturing company and it comes with a baggage of

being an old-school, no-frills footwear maker and retailer. It has traditionally positioned itself as

providing product lines catering to the middle class segment of the society. Bata was in a way

successful in positioning itself as a brand having stores with products to meet the needs of almost

all members of the family, since it had product ranges for children, men, women etc.

Bata enjoyed an almost monopolistic position in the organized footwear market in India until late

1980's. It‘s simple, yet iconic, brown leather sandals and blue-and-white rubber slippers were

instantly recognizable and also are still recognized. Bata was the choice for everyone in the

family. Whether it was shoes for the monsoon, school shoes, formal wear or even comfort wear

for the elderly, the brand had something for every member in the Indian household. The brand

Bata was household name then and was the first choice footwear of the Indian middle class. But

with time, Bata India had to come in line with the changed retailing landscape with the arrival of

malls and big retail chains. It also had to shed its image as a low-cost functional footwear brand

that appeals to the 40-plus age group. Bata started gradually losing its position as market leader

in the 1990's when its profit margins reduced drastically. Bata has suffered due to an un-

favorable impression of a perception drag and has been unable to connect with the youth. This

was due to a number of factors like:-

a) Crowded store formats;

b) Subdued store staff,

c) Lack of presence in the media, etc.

REPOSITIONING

After three straight years of losses, Bata started to script a turnaround story from 2005. Marcelo

Villagran took over Bata India‘s operations in 2005 and he brought about many changes in the

company that have led to a turnaround. He is credited as being the man who brought back Bata

India from the brink of bankruptcy.

The focus was on revamping retail — large format stores were opened and existing ones re-

modelled. Sandwiched between luxury brands from the top and mass market offerings at the

bottom, Bata had to leverage its considerable equity. The erstwhile Bata stores had a very

congested layout and the display of all SKUs was at times either not possible or not accessible.

However, with the revamping of stores, the company has now improved the design and layout to

make more products visible and available for touch and feel to the consumer. The company has

also extended the store timing by two hours (from the earlier 10 am – 7 pm to 10 am – 9 pm).

The company has also decided to keep stores open on Sundays. This led to higher footfalls and,

therefore, improved inventory turnover. A drastic cut in employee headcount and outsourcing

labor-intensive operations helped in pruning costs. As part of the restructuring plan set out by Mr

Villagran, Bata opened 718 stores, closed down 524 and remodeled 296 stores during CY05-12.

The new stores opened were decided in a phased manner and designed according to the target

audience that it catered to.

The company now categorizes stores as:-

1. Metro

2. Metro & Mini metro

3. Smaller towns.

Based on this classification, it decides the store layout, product profile and location based on

that. While stores in metros are air-conditioned and stock more premium and fashion brands, the

metro and mini-metro stores are non-air-conditioned and stock products catering to the

aspirational upper middle class consumers. Similarly, in small towns, the stores are non-air-

conditioned and stock economy and mid-range products meant for mass markets.

In its strategic pursuit, Bata India continues to open approx. 100 new retail stores every year

across India and shut down or relocate unviable stores. Most of the new stores are of large format

having space of more than 3,000 sq. ft. and delicately designed to display each category of

footwear and accessories. These large format stores are designed to provide an excellent

ambience and delightful shopping experience to the customers.

Bata has also overhauled its merchandise strategy. It literally threw out its entire low-margin

inventory in 2005. They fixed a certain operating margin and have decided not to sell any shoes

whose margins are below that margin. And the efforts appear to be paying off as Bata is the

market leader with over 16% share in the organized footwear segment. The company now plans

to increase the average store size to 5000 sq ft. Bata India Ltd has witnessed constant growth

over the past few years, which endorses its strong understanding of the consumer needs and

lifestyle. The footwear collection has vastly improved over the years and many contemporary

and fashionable designs of footwear have been launched. The new designs have helped Bata to

constantly increase its customer base while meeting the changing lifestyle needs of the loyal

customers. The manufacturing facilities of Bata have also been upgraded with introduction of

improved quality, better technology and materials for producing footwear with a trendier look

and comfort to meet the ever-changing market requirements.

An exclusive range of ladies footwear and a variety of products for the kids and children were

launched, which have been well accepted by the customers. Bata continues to be the market

leader in Men's formal footwear, with Ambassador, Comfit, Moccasino - all brands recording

a high growth. In ladies segment, Marie Claire and Sundrop brands of footwear have recorded a

good growth. The footwear range for the children - Bubblegummer and Angry Birds continued

to be the most favourite brands in India. Other popular brands like Power, North Star,

Scholl and Weinbrenner - all have registered growth in volume in the year 2013.

HUSH PUPPIES

Bata India's premium Brand - Hush Puppies has been expanding in line with the overall retail

expansion program and continues to open exclusive stores and shop-in-shop stores in premium

departmental stores. At the end of year 2013, Hush Puppies had 34 exclusive stores and 37 shop-

in-shops.

FOOTIN

Bata India's new retail concept - FOOTIN offers a new range of footwear focusing on affordable

fashion and trendy styles. In FOOTIN stores, customers can get fashionable, young looking and

affordable footwear presented through a high density display concept. It is one of the new

business models with a different approach to improve volume growth of the company. Since

2012, Bata has opened 8 new FOOTIN stores across India, with range of footwear for both men

and women focusing on fashionable and trendy styles at an affordable price.

NON RETAIL

Bata India's Industrial division is now recognized as the leading supplier in the safety footwear

market. The product range has been refreshed by launching new molds as well as new PU-

Rubber soles collection. The customer service function has been strengthened to provide

immediate response to the queries raised by the industrial buyers. The strategy to focus on

segments like defence, canteens, education, corporate, etc. has been fruitful for Bata India and

resulted in achieving good market penetration. A new range for the healthcare segment has been

launched with specialized footwear to be used in hospitals for Doctors, Nurses, front office staff,

maintenance team, etc.

E-COMMERCE

Bata India generated a volume growth of almost 100% in online business during the year 2013 as

compared to the previous year 2012. Its E-Commerce business reached approx. 750 cities across

India with its shipments. In order to attract more e-customers, new partnerships have been

entered into by tying up with leading on-line players e.g., Flipkart, Jabong, E-bay, HomeShop18,

Myntra, Rediff, Indiatimes, etc. As a part of the strategy, Cash on Delivery service was launched

for the end customer to facilitate the shopping ease. The Company‘s website www.bata.in has

experienced a tremendous growth in traffic of approx. 2.5 Million visitors.

ADVERTISING, SALES PROMOTION & SEGMENTATION STRATEGY

FOLLOWED by the BATA

BATA India has traditionally spent less than 1 percent of its total revenue on advertising. This is

far less than their competitors who spend anywhere between 5 and 10% of their revenue on

advertising.

―Location location location‖- is a mantra for retail success. BATA has banked on building its

retail store presence in middle of bustling bazaars in rural and urban areas and near urban

suburban train stations. Coupling the location with VFM (Value for Money) shoes for the entire

family has helped Bata sustain itself for three quarters of a century. The target segment for the

brand used to be the lower and middle income segment of the population.

Like any other retail brand in the business, BATA too holds sales promotions at specific time

periods in the year. These sales promotions are advertised through different mediums:

SALES PROMOTION STRATEGY:-

1. PRICE PROMOTION:- Price promotion refers to ‗price discounting‘. It is done by two

ways, namely

a) DISCOUNTS:- 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 50% on shoes, sandals, chappals, ladies footwear,

kid‘s footwear and men‘s footwear. This offer is available at all Bata footwear

showrooms across the country.

b) END OF SEASON SALE:- Bata often has ‗End of Season sale‘ which helps in

boosting up the sales figure.

2. SALES at POINT of PURCHASE:- Another feature of their sales promotion strategy is

their point of purchase products. Products like Dr Scholls foot cream, Knee Pain Relief

Orthotic, etc. are displayed over the cash counter so as to encourage customers to make

an immediate purchase.

3. CONSUMER PROMOTION:- The tool already in use by BATA India group is ―Bata

Gift Vouchers‖. The design of the vouchers need to be complementary to the theme used

for advertising so as to reinforce the image of the brand.These gift vouchers have the

following features:-

Convenient denominations

6 month validity

Redeemable on all BATA products

Acceptable at over 1500 Bata stores across India.

4. “99’’ MAGIC FORMULA:- The psychological factor of prices ending with 99 gives

the consumer a feeling of a good ‗bargain price‘ as against a ‗cheap prize‘. Bata India

have cleverly managed to use this strategy to their advantage.

BATA SUB-BRAND SEGMENTATION BASED ON INDIAN INCOME

GROUPS:-

ANALYSIS OF PRODUCT & GENERIC COMPETITION TO THE BRAND

When we think of BATA, the first thing that strikes us is its ―INDIANNESS‖. According to the

HR manager BATA, it is the mass appeal that drives a customer to a BATA store. This is largely

because BATA offers the masses products and gifts in every possible price range they can think

of. The brand identity and position of BATA has been carefully crafted and painstakingly

embedded as a value proposition in the minds of consumers for generations. It certainly promises

a lot of value by virtue of consistent quality and positive word-of-mouth.

According to Mr. Anjanay Shrivastav (HR manager), most of the people in India don't even

know that BATA is not an India based brand. An example of mass appeal is also seen in the fact

that the school shoes category is synonymous with BATA.

The total revamp that BATA got as a brand in 2005 is aimed at targeting audiences in every

income group. And hence, the brand came up with products targeting the youth, corporate

executives, working women, sports enthusiasts and children. Prior to this strategy, BATA was

considered to be the ―Parle-G‖ of the footwear industry, mass producing shoes and sandals of the

same type and features for all kinds of target audiences. Hence the new strategy was a huge

development from its previously rigid and old-fashioned brand image. As part of their new

strategy, the new brands that came about were: NorthStar(youth), Marie Claire(women),

Bubblegummers(kids), Weinbrenner(Men) etc. However, one fundamental strategy that BATA

did not execute was the effective promotion of these brands in terms of their advertising. These

new brands did not have separate identities of their own and hence did not succeed in creating

images of their own.

BCG MATRIX OF BATA:-

BCG Matrix describes the company‘s Portfolio analysis with respect to its Market share and

current market growth rate. Due to the competition from local brands of unorganized retail and

presence of low cost emerging brands like Paragon, Relaxo, Khadims, Sreeleathers etc. Bata is

losing its market growth though it has high relative market share. With incomes growing, Bata

needs to understand how consumer aspirations change and find ways to meet the changing needs.

So, in the coming years, Bata needs to focus on consumer insights, innovation, renovation as

well as improved value chain management for a good performance.

GENERIC COMPETITION TO THE BRAND:-

India‘s per capita shoe consumption or the number of footwear (shoes, chappals, sandals) worn

by an individual has gone up from 1.4 shoes a year in 2004 to 2.8 shoes per year in 2013,

according to data from the commerce ministry, ―While in absolute percentage terms this might

not seem like a lot, in a country of a population of one billion people, the fact that in six years

people have gone from consuming 1.4 shoes a year to 2.2 shoes a year is a big change,‖ said

Suman Roy Burman, president, Khadims, a Kolkata-based manufacturer and retailer. The

average shoe consumption in developed countries is about five per person per year.

PORTER’S FIVE FORCES MODEL:-

In order to devise a competitive strategy for BATA, we need to analyze Porter‘s Five Forces

Model. The model analyses the different aspects of attractiveness and competitiveness of the

market.

STRATEGIES ADOPTED OVER TIME BY THE BRAND TO TACKLE

COMPETITION OR PRIME MARKET EXPANSION

To tackle competition and expand the market share Bata is adopting strategies over time e.g.

aggressive retail expansion, promotion of its brands, contemporary styling, and quality control

and strengthening its human resources. As far as growth strategies and competencies of Bata are

concerned in Prime market expansion, they can be categorized as:

1. PRODUCT DEVELOPMENT & DIVERSIFICATION:- Bata has been holding a

unique place in the heart of Indians for more than 75 years. Bata Products have been

designed as per various functional needs e.g. sports, casual footwear, formal-semi and

formal. From contemporary to fashion shoes, sports to outdoors, Kids to teens, Bata

today stands for trendy, colorful & youthful footwear destination offering shoes &

accessories for the entire family. With more than 1500 designs to choose from, the design

inspirations are upscale international at affordable price. Bata today design, source

market many international footwear brands such as Hush Puppies, Naturalizer, Marie

Claire, Sundrops, Dr.Scholl's, Power, Weinbrenner and many others. The name ―Bata‖ is

not limited in footwear industries, but Bata is also trying to excel in the arena of other

propositions like- Umbrellas, Belts, Bags and Sunglasses etc.

2. MARKET DEVELOPMENT:- The customer value proposition is substantial as Bata

offers value for money along with the trust which its customers have because of the

established Bata brand. In terms of access, functionality and selection options it always

fulfils its promises of being a family outlet where each member of the family can buy

something. To increase the contribution from women and children's footwear segments,

Bata increased the display area for both segments across all stores, complimented by

launching newer trendy designs under brands like Marie Claire, Hush Puppies, North Star

etc.

Bata had made its presence in all corners of the country to introduce its current products

into new market segments- thereby ‗accessibility to everyone‘ becomes possible for the

customers. Bata derives nearly 85 per cent of revenue through retail networks, 14 per cent

from non-retail channels (dealers/institutional/industrial sales) and balance 1 per cent

through exports. About 80-90 per cent of the retail revenue is from Tier I and II cities,

presenting a huge opportunity to tap rural and semi-urban markets, which are mainly

serviced through dealer networks. Bata has been present in towns with a population of

500,000 and above and plans to expand to 400 plus cities, with a population of more than

100,000, to improve presence in Tier III and rural markets through the wholesale

division.

3. BETTER QUALITY AT LOW COST:- Retail footwear segment in Indian is very price

sensitive and has been steadily growing over the years. Major part of the demand is met

by brands like Bata and Liberty. While international brands largely dominate the higher

end of the spectrum, the lower end of the market is dominated by home-grown players as

well as unorganized players.

4. CUSTOMER CARE INITIATIVES:- During the year 2013-14, Bata has further

strengthened its customer care division. Effective and satisfactory customer service

continued to delight the customers at various points, i.e., starting at retail stores, during

the sale interaction, post sales services at Customer Help Desk and obtaining feedback

from the customers. A new initiative - ―Passion to Serve‖ program has been adopted for

the sales personnel which entitles them to periodic promotions. An exclusive Customer

Help Desk has been in place to assist the customer and to locate stores, inform product

availability, process online orders and to acknowledge all their valuable feedback. On the

Digital Space, through Facebook, Bata has entered into over 100,000 customers' personal

space and acquired more than 250,000 ―Likes‖ on Bata Facebook page.