PROJECT REPORT TITLED

Evaluation of marketingEvaluation of marketing strategies & assessment ofstrategies & assessment of

consumer preferences ofconsumer preferences of Bata India Ltd.Bata India Ltd.

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS

FOR

MASTER OF BUSINESS ADMINISTRATION

ACKNOWLEDGEMENT

Project work is never the accomplishment of an individual. Rather, it is

an amalgamation of the efforts, ideas and co-operation of a number of

entities. The compilation and presentation of this opuscule has

bestowed me with an opportunity to show my gratitude to those

subservient to it.

I am highly indebted to my guide Mr. H S Parmar who has been the

hallmark of this effort. His guidelines made me comprehend the

enigmatical portion of the subject and were the sole animating force

that coerced me to meliorate my efforts without the support and

guidance the project report would not have taken shape.

INDIAN FOOTWEAR INDUSTRY

With a large population close 1000 mn; India has a large shoe demand.

The total size of the market is estimated at 800 mn pairs, which

represents less than a pair per capita. While a large number of people

buy two to five pairs, some even ten pairs, there is a large number of

who buys even more. With only one more pair per capita, the demand

will expand by a staggering 1000mn pairs. This is a norm, which is not

hard to conceive. The per capita demand is expected to increase to 1.5

pairs by 2002 and 2.5 by 2007. The price range is so dispersed that a

predominant majority can buy an additional pair a year. In fact, the life

cycle of many pairs is not as long as one year.

Until recently, a major part of the demand was met by the

unorganized, informal, small sector. Branded shoes account for only

less than 20% of the entire market. Less than 1% of the shoes sell at

prices exceeding Rs 500 per pair.

The industry had witnessed major problems regarding raw material

costs, funds availability, declining capacity utilization and increasing

global competition. Capacity utilization, a major indicator of the

economic health of the industry, was low at 60%.

The two Supreme Court Orders in September 1995 and April 1996

forcing closure of 459 leather tanneries in Tamil Nadu gave a jolt to the

leather industry in the State. Leather is one of the State’s prime

industries contributing 60% of the country’s leather production and

providing 250000 jobs in 914 tanneries.

Shoes have diverse segmentation:

1.) By material of construction:

There are:

a) Leather

b) Rubber

c) PVC

d) Canvas

e) Multi product shoes

2.) By consumers variation:

There are:

a) Men’s

b) Women’s,

c) Boy’s

d) Girl’s

e) Baby shoes

3.) By usage pattern:

There are:

a) Formal shoes

b) Casual and informal shoes

c) Slippers for in house use

d) Military shoes and

e) Sports shoes

4.) By types of shoes:

There are:

a) Military or police boots

b) Formal dress closed and pumps

shoes

c) Sandals

d) Hawai chappals and

e) Slippers

5.) By price range:

a) High end over Rs1000 per pair going

beyond Rs2500 per pair

b) Medium priced shoes between Rs250 to Rs.

1000 per pair.

c) Low priced shoes below Rs250 per

pair.

d) Plastic chappals or leather strapped rubber

sole chappals could be priced as low as Rs

20 a pair.

e) Women’s footwear sector is a fancy

segment served both by local producers and

foreign suppliers.

The industry is segmented widely:

a) Large Indian producers

b) Multinationals producing in India or

exporting from abroad

f) Small scale semi-organized sector

g) Cottage industry.

Only the first two segments produce branded shoes.

MNC’S IN FOOTWEAR INDUSTRY

In their category of a million shoe markets, the three major MNCs

players are Reebok, Adidas and Nike. Of this, one half goes to Reebok

and the other half is equally shared between Adidas and Nike. The

share of foreign brands in India with prices over Rs. 1,000 per pair is

less than 5% of the branded market or less than 1% of the total

market. The foreign brands include Reebok, Nike, Adidas and Puma in

sports; Florsheim, Clarks and Lotus in formal; and Lumberjack, Lee

Cooper and sketchers in casuals.

The global player, Reebok India, incorporated in 1985, is a 80:20 joint

venture between Reebok International of the US and Phoenix

Overseas. It has now received the approval from the government to

increase its stake from 80% to 95%. Reebok has sales of $ 3.50 bn and

operations in over 40 countries worldwide. Reebok is introducing

performance shoes which customized for different sports like cricket,

basketball, football, walking, jogging and other sports. The

international shoe majors had created a new interest for sports shoes

in India. However the prices of the Reebok Brand are far beyond the

pocket of most Indian consumers.

The Indian companies had priced sports shoes lower in the range of Rs

450 to Rs 1000. Only a few models are priced higher than Rs 2000.due

to the interest created, the Indian brands, Liberty, Phoenix and Action,

had expanded their sales in this category. Action, with divergent

strategies, had sold large volumes. They spread their products in

different price segments, but at a much lower price than those of

global brands.

Of the sports shoes, 80% had imported components, which attracted

an average duty of 50% (with some components attracting 72%).

Adidas also had a manufacturing contract with Lakhani. Nike’s licensee

in India is Sierra Industrial Enterprises, which had given the brand’s

manufacturing contract to Moja Shoes. Nike is also selling through

select Bata showrooms and a few departmental stores. Adidas has

entered into a retail tie-up with Phoenix. Liberty shoes, a leading Indian

player has a turnover of Rs. 2250 mn. Phoenix had a turnover of Rs.

3800mn a year.

DEMAND: PAST & FUTURE

Year MN Pairs

1990-91 360

1991-92 400

1992-93 435

1993-94 475

1994-95 525

1995-96 550

1996-97 605

1997-98 665

1998-99 730

1999-00 805

2000-01 890

2001-02 1000

2006-07 1570

LEAD PLAYERS

Company Share (%)

Leather Other

Bata India 24 52

Liberty 36 22

Carona 1 3

Metro shoes

Drish shoes

Unico Leather

Performance shoes

Reebok India

Adidas ) 45

Nike )

Aero group,Mescos, )

Wasan,Lotus,Bawa, ) 55

Lumberjack,Lakhani )

MARKET STRUCTURE

Market Segmentation

Segment Share (%)

Organized 20

Informal 80

PRODUCT VARIATION

Type Share (%)

Casuals 46

Sports 42

Formals 8

Performance 4

Below Rs 500/pair 68

Rs 500 to Rs 1000 29

Above Rs 1000 3

Leather 10

Rubber/PVC 21

Canvas 69

LITERATURE REVIEW

Marketing organization

Over the years marketing has grown from a simple sales

department into a complex group of activities. We will examine

how marketing departments have evolved in companies how

they are organized and how they interact with other company

departments.

The evolution of the marketing department

Marketing departments have evolved through six stages simple

sales department sales department with marketing function

separate marketing department modern marketing department

effective marketing company process and outcome based

company.

Customer focus

In India, marketing as a discipline has evolved at a leisurely

pace, dictated of course by circumstantial factors. Most market

being sellers markets (i.e., where seller dominates over the

customer) until recently marketing philosophy was an alien

concept for an India seller. In a broad sense all markets can be

divided into two categories: sellers market and buyers market. A

buyers market is one where due to prevailing intense

competition among the sellers and consequent excess of supply

over existing demand the buyer rules over the seller. On the

other hand in a sellers market competition is restricted for any

number of reasons. For example domestic air transportation was

sellers market till only Indian airlines was operating. Now it is a

buyers market.

Neil Borden summed them up as marketing mix. Then the

prevailing thinking was that it involved a blend of selling

distribution advertising and related skills in the right proportion

to suit the market its time and place. After marketing got

separated from the notion of selling the former now

manufacturing and post manufacturing (transportation ware

housing promotional) costs plus the targeted level of profit

margin. Actual price fixing of course depends on the function

features of the product and image of the brand. Then there is

the degree of the competition that dictates the prices of a brand

vis-à-vis its competing brands.

Price can also act as communication tool. For example price

package may give the message of affordability.

We also acquire needs after we are born. These needs are

shaped by the environment and the culture in which we live by

our education and by our experiences. The interesting thing

about acquired needs is that there are usually many people who

experience the same needs. This commonality of needs or

interest constitutes a market segment enabling the marketer to

design specific product and/ or promotional appeals to satisfy

the needs of that segment. Market segmentation also enables

the marketer to very the image of its product so that each

market segment perceives the product as better fulfilling its

specific needs than competitive products.

One of the most important constants among all of us despite our

differences is that above all we are consumers. We use or

consume on a regular basis foods clothing shelter transportation

education equipment vacations necessities luxuries services

even ideas. As consumers we play a vital role in the health of

the economy local national and international. The purchase

decisions we make affect the demand for basic raw materials for

transportation for production for banking they affect the

employment of workers and the development of resources the

success of some industries and the failure of others. There is no

question that consumer behavior has become an integral factor

in the ebb and flow of all business in a bustling world economy.

The term consumer often is used to describe two different kinds

of consuming entities the personal consumer and the

organizational consumer. The personal consumer buys goods

and services for his or her own use (e.g., an electronic notebook)

for the use of the household (a VCR) or as a gift for a friend (a

videogame) in each of these context the products are bought for

final use by individual who are referred to as end users or

ultimate consumers. The second category of consumer the

organizational consumer includes profit and not for profit

business government agencies (local state and national) and

institution (e.g., school hospitals and prisons) all of which must

buy product equipment, and services in order to run their

organizations.

Forecasting and demand measurement

One major reason for undertaking marketing research is to

identify market opportunities. Once the research is complete the

company must measure and forecast the size growth and profit

potential of each market opportunity. Sales forecasts are used

by finance to raise the needed cash for investment and

operations; by the manufacturing department to establish

capacity and output levels by purchasing to acquire the right

amount of supplies and by human resources to hire the needed

number of workers. Marketing is responsible for preparing the

sales forecasts. If its forecast is far off the mark the company

will be saddled with excess inventory or have inadequate

inventory. Sales forecasts are based on estimates of demand.

Managers need to define what they mean by market demand.

Company sales forecast

Once marketers have estimated company demand their next

task is to choose a level of marketing effort. The chosen level

will produce an expected level of sales. The company sales

forecast is the expected level of company sales based on a

chosen marketing plan and an assumed marketing environment.

The company sales forecast is represented graphically with

company sales on the vertical axis and company marketing

effort on the horizontal axis as in. too often the sequential

relationship between the company forecast and the company

marketing plan is confused. One frequently hears that the

company should develop its marketing plan on the basis of its

sales forecast. This forecast to plan sequence is valid if forecast

means an estimate of national economic activity or if company

demand is non expansible. The sequence is not valid however

where market demand is expansible or where forecast means an

estimate of company sales. The company sales forecast does

not establish a basis for deciding what to spend on marketing.

On the contrary the sales forecast is the result of an assumed

marketing expenditure plan.

A product mix (or product assortment) is the set of all products

and items that a particular seller offers for sales to buyers.

Product classifications

Marketers have traditionally classified products on the basis of

characteristics durability tangibility and use (consumer or

industrial). Each product type has an appropriate marketing mix

strategy.

Durability and tangibility

Products can be classified into three groups according to

durability and tangibility:

1. Nondurable good are tangible goods normally consumed in

one or a few uses like beer and soap. Because these goods

are consumed quickly and purchased frequently the

appropriate strategy is to make them available in many

locations charge only a small markup and advertising heavily

to induce trial and build preference.

2. Durable goods are tangible goods that normally survive many

uses refrigerators machine tools and clothing. Durable

products normally require more personal selling and service

command a higher margin and require more seller

guarantees.

3. Services are intangible inseparable, variable and perishable

products. As a result they normally require more quality

control supplier credibility and adaptability. Examples

include haircuts and repairs.

Sales promotion:

Sales promotion tools coupons contests premiums and the like

offer three distinctive benefits:

1. Communication: They gain attention and may lead the

consumer to the product.

2. Incentive: They incorporate some concession inducement or

contribution that gives value to the consumer.

3. Invitation: They include a distinct invitation to engage in the

transaction now.

Companies use sales promotion tools to draw a stronger and

quicker buyer response. Sales promotion can be used for short

run effect such as to dramatize product offers and boost

sagging sales.

Consumer Behavior:

The term consumer behavior refers to the behavior that consumer

display in searching for, purchasing, using, evaluating and disposing of

products and services that they expect will satisfy their needs. The

study of consumer behavior is study of how individuals make decisions

to spend their available resources (time, money, effort) on

consumption related items. It includes the study of what they buy, why

they buy it, when they buy it, where they buy it, how often they buy it,

and how often they use it. Take the simple product toothpaste. What

types of toothpaste do consumers buy (gel, regular, striped, in a tube,

with a pump) ; what brand (national brand, private band, generic) ;

why do they buy it (to prevent cavities, to remove stains, to whiten

teeth, as a mouthwash, to attract romance); where do they buy it

(supermarket, drugstore, convenience store); how often do they use

it(when they wake up, after each meal, when they go to bed, or any

combination thereof); how often do they buy it (weekly, biweekly,

monthly)?

CB : A SYNTHETIC FIELD OF STUDY---------------------------------------------------

SOCIAL PSYCHOLOGY PSYCHOLOGY

CONSUMERBEHAVIOUR

ECONOMICS

SOCIOLOGYANTHROPOLOGY

SOME CONSUMER BEHAVIOUR ROLES

Role Description-----------------------------------------------------------------------Initiator The person who determines that some need

or want is not being met.

Influencer The person who intentionally/unintentionally influencesthe decision to buy the actual purchase and/or use of product or service.

Buyer The person who actually makes the purchase.

User The person who actually uses or consumes theproduct or service.

FRAMEWORK FOR ANALYZINGCONSUMER BEHAVIOUR

ENVIRONMENTAL ANDINDIVIDUAL ANFLUENCES

BUYERDECISION PROCESS

OUTCOME

TYPEOFBUYINGSITUATION

BATA INDIA LIMITED

Bata India Limited is India's largest manufacturer and marketer of

footwear products. Bata India sells over 60 million pairs per year

throughout India and in overseas markets such as USA, UK, Europe,

Middle East and Far East.

Bata India is part of the global Bata Shoe Organization based in

Toronto, Canada. Incorporated as Bata Shoe Company Private Limited

in 1931, the company went public in 1973 when it changed its name

to Bata India Ltd.

Its first factory was set up in Konnagar in 1931 which was then

shifted to Batanagar.

At its five factories - Batanagar, West Bengal (1936);

Bataganj, Bihar (1942); Faridabad, Haryana (1951);

Peenya, Karnataka (1988); Hosur, Tamil Nadu (1994) - the

Company manufactures quality leather, rubber, canvas and PVC

shoes in wide-ranging designs and styles at affordable prices.

Bata India has two tanneries - one at Batanagar and the other at

Mokamehghat in Bihar (1952). The latter is the second largest in

Asia.

Batanagar factory is the first Indian shoe manufacturing unit to

receive the ISO 9001 certification in 1993.

Bata first established itself in India in 1931 and commenced

manufacturing shoes in Batanagar in 1936. At that time the Bata

Shoe Organization was headquartered in the Czechoslovak town of

Zlin, the residence of Tomas Bata, the founder of the

Organization.

Operations were expanded throughout India with the establishment

of factories in different states and the rapid growth of the

distribution channels to allow the Company's products to reach

consumers in every town across India. Bata India remains today

India's biggest manufacturer and marketer of footwear.

Starting operations as a private company, Bata India is today

traded on the Kolkata and Mumbai Stock Exchanges

Bata History

The business that became the Bata Shoe Organization

was established on August 24, 1894 in Zlin,

Czechoslovakia by Tomas Bata, and included his

brother Antonin and sister Anna. Although this

business was new, the Bata name had been part of a

tradition of shoemaking for eight generations,

spanning three hundred years.

It was one of the first modern-day shoe 'manufacturers', a team of

stitchers and shoemakers creating footwear not just for the local town,

but also for distant retail merchants. This departure from the centuries-

old tradition of the one-man cobbler's workshop was a

brand new concept, creating an entirely new industry.

The Bata enterprise revolutionized the treatment of

employees and labour conditions. Tomas consistently

maintained a human focus, creating opportunities for

development and advancement, and added

compensation for employees based on achievement.

In late 1895, Antonin was drafted into the

army for compulsory military service and left

the family shoe business. Also that year, Anna

left the company to marry, leaving a young

Tomas to build the business on his own.

By 1905 Tomas had taken the new enterprise to 2,200 pairs of shoes

per day, produced by 250 employees - utilizing resourceful

imaginations, skilled hands and modern machinery to keep up with

demand. Under this 'manufacturing' system,

productivity was greater than ever before.

Bata® shoes were excellent quality and available in

more styles than had been offered before. Demand

grew rapidly in the early 1900s. Despite material and

manpower shortages, cartels and the outbreak of

World War I, sales continued to increase, reaching

two million pairs per year by 1917.

As the enterprise prospered, so did the communities where it operated.

Tomas believed that a focus on people and public service was critical

for business success. The enterprise built housing, schools and a

hospital near the shoemaking plant in Zlin. It provided food and

inexpensive rent during very difficult times, when there was no other

help to be found. Bata companies later provided rail services,

construction, insurance, publishing and a tannery in Zlin.

Following World War I, consumer purchasing power was very low.

Tomas and his employees devised a plan to adjust to post-war

economic difficulties and reduced their shoe prices. Bata® stores were

flooded with buyers, and industry cynics were forced to follow their

lead.

Already exporting to other European countries, Northern Africa and the

USA, the enterprise began establishing new sales organizations in

these markets during the 1920s. Companies were opened in Poland,

Yugoslavia, Holland, Denmark, the United Kingdom and the USA. By

the early 1930s, the Bata enterprise and Czechoslovakia were the

world's leading footwear exporters.

"The Bata System" devised by the Zlin team, and later applied in other

Bata Shoe Organization companies, organized operations into

autonomous workshops and departments ("profit centres"), allowing

employees to contribute ideas and stimulate production, and

contributed significant breakthroughs in footwear technology.

A great proponent of modern technology, Tomas Bata was likely one of

the first industrialists to travel by private airplane. Tragically in 1932,

poor weather on takeoff near Zlin forced his airplane down and Tomas

died in this plane accident.

By this time, new companies had been established in France, Austria,

Romania, Sweden, Switzerland, Egypt, Belgium, Finland, Luxembourg,

Hungary, Italy, Indonesia and Singapore, and by 1938, the Bata Shoe

Organization had established a unique and widespread presence,

designing, producing and marketing footwear in more than 30

countries.

Thomas J. Bata, son of founder Tomas, had from an early age been

active in the Bata Shoe Organization companies. He had already

served in several leadership positions and would soon spearhead the

establishment of the Canadian company. Thomas J. Bata was CEO of

Bata Limited for over 40 years.

The Bata Shoe Organization regarded itself as a 'multi-domestic' rather

than multinational enterprise, making it a priority to contribute to the

economy in any new markets it entered. Production facilities were

frequently added to sales organizations, beginning with Möhlin,

Switzerland and Calcutta, India. Many other shoemaking plants

followed, at a rate of about two per year, until the 1960s.

During the 50s, 60s and 70s the Organization redoubled its focus on

retailing excellence, international footwear branding, advanced

manufacturing techniques and extensive employee training, another

Bata tradition that dated back to the Organization's earliest years. The

Organization continued to expand its retail

operations, production facilities and moved into

new countries of operation.

Thomas J. Bata, and son Thomas G. Bata,

continued to lead the Organization with the

traditional philosophy ensuring that each

operation focused on customer satisfaction. The father and son team

began redefining the Organization, as the world manufacturing base

for footwear shifted to developing countries. New business strategies

have been guided by the founding principles of focussing on

customers, marketing and employees. Branded products, innovative

retail store concepts, lifestyle merchandising, non-footwear products

and participative retailing have been introduced.

In 1992, the Organization and family were invited to return to the

Czech Republic, where Bata had remained a symbol of national pride

and achievement.

Today the Bata family continues to be involved in the organization,

with Thomas G. Bata, grandson of the founder as Chairman.

Manufacturing Excellence

Bata is one of the world’s leading integrated manufacturers and

marketers of footwear, with a network of almost 60 shoe production

facilities, tanneries and engineering workshops in 30 countries. Bata

companies produce almost 150 million pairs of shoes and over 30

million square feet of leather every year. Many Bata manufacturing

operations have received ISO certification.

About half of this output is destined for sale through company-owned

retail stores, and the balance is manufactured to the specifications of

wholesale customers or under contract to other footwear brands.

100 years of leadership

Bata has been manufacturing footwear for over 100 years. Bata

personnel made key advances in several footwear production

techniques in use today, including the Direct Vulcanization Process

(DVP) and slush-moulding. Bata inventors also patented the original

process that adhered PVC outsoles to textile uppers.

During the 1990’s additional patents have been awarded, including

one for the first removable heel cartridge system for athletic

performance footwear.

Many Bata manufacturing facilities have passed stringent ISO 9000

certification, with others presently in the certification process.

Good neighbours

Every Bata manufacturing facility is subject to organization-wide

guidelines covering quality control, and health and safety standards. In

addition, Bata companies purchase some 100 million pairs of shoes

from other manufacturers for sale through their retail networks.

Preference is often given to local suppliers for these products. Many

Bata companies have a long standing tradition of assistance to local

suppliers capable of meeting their standards, and have had the

satisfaction over the years of helping many local entrepreneurs.

When capability or pricing requirements cannot be met locally, and

trade regulations permit the cost-effective importation of goods, Bata

companies search out the best foreign sources of supply.

Associated Business Units

Bata’s policy of good corporate citizenship means that Bata companies

desire to have a positive economic and local impact on the

communities where they operate. There is long standing tradition of

working closely with locally owned and managed suppliers, and

providing them with technical and other help to achieve international

quality and operational standards.

Exports:

BIL (Bata India Limited) exports around 3 million pairs of shoes and

other footwear annually, primarily to Western Europe, Middle-East

and Far-East markets. Majority of the export is Canvas shoes under

leading private labels to customers in the United Kingdom and

France. Men's leather shoes are sold to established retailers in

Europe, Middle-East and Far-East.

BIL's most modern leather shoe Factory is located in Hosur (Tamilnadu)

and is geared to make international quality footwear for export.

This Factory is comparable to the best anywhere in the world with high

degree of flexibility and is fully equipped to manufacture Men's, Ladies'

and Children's cemented and Moccasin shoes and other footwear.

Bata means shoes 

Bata is one of the world’s widest reaching companies, with operations

in 68 different countries. Bata companies strive to listen to the

customers in their local markets and clearly identify their footwear

needs, and then to provide products that exceed their customers’

expectations in terms of quality, style and value.

Bata operating companies are grouped into four business units based

on similarities in markets and business issues. Each group benefits

from synergies specific to their requirements, such as product

development, sourcing and marketing support. Each business unit is

entrepreneurial in nature, and can quickly adapt to changes in the

marketplace and seize potential growth opportunities.

Bata International serves customers in much of Asia, the Pacific and

Africa through its 3,000 stores and many dealers. It is supervised from

Singapore. Bata International operates shoe innovation centers in

several countries as well as 30 factories to serve individual markets.

Bata Europe is based in Paris and operates 500 stores offering

fashionable footwear. The world-class shoe innovation center just

outside of Venice supplies many of the exclusive lines found in Bata

stores throughout Europe.  

Bata Latin America is based in Mexico City. Bata is the leading

retailer of shoes in Latin America and the leading marketer of

children's branded footwear.  

Bata Canada is based in Toronto from where 250 stores serve the

Canadian market. Its chain of Athletes World’s and Nike Shops is the

leading fashion source in Canada for young urban customers.  

A few key facts

Founded in Zlin, in what is now the Czech Republic, in 1894 by

Tomas Bata

Retailer, manufacturer and distributor of competitively priced

commercial fashion footwear and accessories

Employs over 50,000 people in retail, manufacturing and

wholesaling operations

Over 4,700 company owned retail stores

Bata companies annually manufacture over 140,000,000 pairs of

shoes in 46 production facilities and over 30 million square feet

of leather in 9 tanneries

Bata companies serve almost 1 million customers each day

Commitment to Service  

 

Tomas Bata believed that if you focused on providing service, that

profit would follow. Focus only on profit,

however, and you would soon lose your

customers. Bata’s commitment to service

continues to this day, from the designer’s

sketchbook through to the performance of

our shoes on a customer’s foot. Bata

companies strive to supply the right

products, at the right time, at the right

price, and in a manner that fulfils our service commitments to both

retail and wholesale customers.

In some languages in the world, the word Bata literally means shoes –

footwear didn’t exist before Bata came to

the market. In some locations, Bata is the

most widely recognized of any consumer

brand. Bata companies merit such

recognition through the ongoing fulfillment

of our customers’ product and service expectations.

Bata Leadership Points

Bata operates in many different economic and

cultural environments around the world, dictating

very different types of operations. Although Bata

does not sell the same shoes nor does it have

identical stores in each country, customers will

recognize common elements to the Bata experience everywhere in the

world.

These common elements are the Bata Leadership Points.

The best product

Bata companies offer their customers fresh, fashionable footwear and

accessories, designed specifically for the needs of the local market.

Their shoes are always well made from quality materials.

The best service

Whether in India or Italy, their sales associates offer consistently first-

class service. They are well-trained to ensure a proper fit, and they

pledge customer satisfaction.

The best value and quality

Through the efficient sourcing and distribution of Bata products, they

can control the cost and quality at every step to ensure value to their

customers.

The best locations

Bata stores are modern, attractive and located

conveniently to their customers. Bata companies

utilize innovative promotions and displays to

display their products in attractive manner.

   

People First

Bata is a truly worldwide entity, whose diversity of ideas, training and

international exchange of expertise have been major assets.

Employees of Bata companies encompass most of the world’s

nationalities and many languages and dialects. It is Bata policy to

provide equality of opportunity without discrimination, to promote on

merit and to stimulate people into thinking beyond their immediate

national experience.

Learning does not stop once work begins – training programs ensure

continuing education, skills upgrading and development of general

management capabilities. Management teams are often comprised of

individuals who have risen through the ranks of Bata companies, from

every geographic area. Bata recognizes and rewards initiative,

competence and integrity at all levels, regardless of ethnic or cultural

background.

Advancement is linked to a closely monitored educational process.

Placements in different operational areas or in different countries

enable promising individuals to gather an unusually broad set of

experiences. Additionally, Bata companies invest in their employees

through internally developed local, regional and international training

and skills development programs. These programs promote the free

exchange of knowledge and ideas within the organization, and help to

ensure that all employees share in the Bata goals and principles.

 

Corporate Responsibility

Bata companies have a tradition of being

good corporate citizens and seek to contribute to the well being of the

countries and communities where they operate.

Ethical and Legal Conduct

Bata companies conduct themselves as positive and contributing

members of any community in which they operate, and seek to provide

employees with a safe and healthy working environment. Bata

companies are committed to ensuring that operations are conducted

ethically, and in compliance with applicable local laws and regulations.

Environment, Health and Safety Policies

The Bata Environmental Mission Statement is: to protect our people,

customers and communities and to protect our natural environment in

order to help sustain human development globally.

In the implementation of this mission, international guidelines have

been developed in the areas of environment, health and safety. The

efforts and achievements of Bata companies have been recognized in

many countries, by both local and international bodies.

The contribution to environmental conservation includes a role in

prevention and education. Bata companies have long standing

relationships with groups that have helped several generations of

young people become more aware of the need for protection of the

natural environment.

BATA RANGE OF PRODUCTS

Bata Brands:

With more than eight renowned brands, which include Hush Puppies,

Marie Claire, Bubble Gummers, Power, they cater to a wide range

of choices all over the country. Hush Puppies are one of the world's

most comfortable shoes designed for both men and women. Marie

Claire is for today's fashion conscious women who love shoes, which

match their colourful and vibrant wardrobe. That's not all. For those

who want a tough shoe that can weather any storm, they have Sandak

to suit their needs. Weinbrenner is simply meant to take you outdoors.

With them on you can be rest assured about their rugged character

and durability. Kids can take their pick from Bubble Gummers. Power is

all about athleticism, for those who love sports and enjoy sporting

activities.

Bata Premium Collections

Bata has been delivering hand-crafting quality footwear for well over

100 years. To maintain and build on their heritage of creating high

quality, comfortable and stylish shoes, Bata has created the Bata

Premium Collection of products in their design centre in Italy.

These shoes are available at selected Bata stores in Europe and

elsewhere, and incorporate innovative leading design with the

application of modern technology. They are their signature shoes for

both women and men.

PRODUCT PROFILE

Girls (FITNESS)

Women generally own more pairs of shoes and slippers than men.

They generally buy 3-4 or more pairs of shoes within a year. And as

they like to buy a number a shoes within a year they want the shoes

which provides them comfort, Quality, at a very reasonable price. So

seeing the opportunity Bata launched a new product and named it as

“Fitness”. Fitness is there in the market from last fifteen years but

company consistently improved it keeping in view the changes, which

have taken place in last fifteen years. In fifteen years, lifestyle of the

consumer changed rapidly. After studying the about Indian market the

company ranges it in between of Rs. 124/- to Rs. 179/-. Teenage girls

also contribute heavily on these kinds of shoes. Almost 96 percent of

them bought their last pair of shoes or slippers in the last 12 months. It

is observed that teenage girls are more fashion-oriented as compare to

ladies.

Boys (POWER)

Large proportions of teenage boys buy Sports Shoes. The choice, in

this category, is between Bata and Phoenix or any local brand. The

competitive categories are leather and sports shoes. If one were to

look at number of pairs owned, there is no major difference between

these two categories: Most category-owners own one pair of leather or

sports shoes. It is there in the Indian market from last fifteen years and

company has regularly improvised their product with the change in

fashion, trend, quality and comforts and from there on company

consistently revised the prices of Power. At present Power is priced

between Rs. 599/- to 999/-.

BATA'S BRAND POWER

KIDS (BUBBLE GUMMERS)

Bubble gummer is kids range conceived by bata & bata has regularly

surveyed the small age consumer and customers from last 15 years.

The shoe was designed after identifying the real need or wants of the

kids. So, bata launched “bubble gummers” which satisfies kids in every

aspect whether take it in terms of comforts and durability. The shoes is

available in number of colours as well as they are designed in a way

which looks funky & trendy so that children’s get attracted towards it

and induces parents to buy that product. The shoes ranges from rs.

99/- to rs 124/- onwards.

FITNESS

Here, the Company has followed the “Maximum Sales

Growth” pricing strategy for its ladies collection called

“Fitness”. The Bata’s fitness includes ladies slippers which

has a wide variety with different features look moisture

free, airy, comfortability and many more. The fitness is

ranges from Rs. 124/- to Rs. 179/-. The Company has

segments its market towards lower and middle class. The

fitness provides to its customer an evergreen range of

products. The customers purchase it over the whole year

and also the shoes have a very longer life. That’s why the

company adopts this strategy for pricing strategy of its

ladies shoes fitness.

BUBBLE GUMMERS

And know ultimately let’s have a look at the pricing strategy

which was adopted by the Company Bata for its Bubble

Gummers. The strategy adopted was “Maximum Sales

Growth” due to the reason as the growth rate of children is

very fast and the size of their feets changes very frequently.

And also the children are not too much bothered about their

shoes that’s why sometime the lost them. So, after going

through all these reasons the company looks to adopt the

“maximum sales growth” pricing strategy.

RATIONALE BEHIND THE STUDY

Rationale behind the study is as follows:

1. The change in the marketing strategies and consumer preferences in the competitive footwear market.

2. The marketing strategies evaluated by the management being less effective as compared to its competitors.

3. The consumer preferences in purchasing footwear other than Bata.

4. The threat of competition increased by penetration of International marketers in the National Footwear market.

5. The decrease in the company’s market share.

To meet the aforesaid challenges it has become necessary to study the evaluation of Marketing Strategies and Consumer Preferences assessment.

Objectives of the Study:

1. To evaluate effective marketing strategies for gaining maximum market share in the competitive footwear market.

2. To assess the consumer’s approach towards Bata Footwear.3. To know about the marketing strategies of the competitors and

their effect on the Bata India Footwear.4. To know about the latest Marketing Strategies adopted by the

company to achieve its desired goals and objectives.

Research methodology:

Both primary and secondary data were used to study the evaluation of marketing strategies and consumer preferences assessment.

1. Collection of Primary data:The primary data was collected by conducting a questionnaire method through mail and interview. A framed questionnaire regarding the topic chosen was mailed to the selected sample of 60% of retailers and 20% of the authorized dealers of the company. Also a selected sample of 400 people including consumers, company’s executives and non executives belonging to different geographical areas of Himachal Pradesh were interviewed regarding the topic chosen for the study.

Data thus collected was statistically analysed and on the basis of the analysis recommendations and suggestions have been given.

2. Collection of Secondary data:The secondary data regarding marketing strategies and Consumer Preferences were collected from the company’s business record.

Limitations:

The limitation is that the footwear business in Bata India is all across the country and therefore the data collected from the selected sample of people from Himachal Pradesh will not be 100 percent correct.

Expected Contribution:The results from the study will help the organization in evaluating such business strategies which can make the Bata Footwear more preferable in the footwear market. The finding of the study will benefit the overall structure of the organization.

ANALYSIS

The following is the analysis that is based on the responses filled in by the consumers in the questionnaire. It is calculated with the help of frequency tables, bar graph, pi-charts, etc. all close-ended questions have been included as a part of the analysis and the analysis of the face to face interaction and the analysis of the close-ended questions form the base for recommendations.

Number of Respondents: 400

Survey Area: Himachal Pradesh

Income Level (Per Month) of Respondents:

Do you use Bata Footwear?

I have only contacted people using Bata Footwear. If they answered no

to this question then that questionnaire was terminated.

Which other brand of Footwear do you own?

Do you perceive any significant differences among different brands of Footwear’s?

Thus we see this is a high involvement product and the consumers feel

that there are significant differences in brands categorizing Footwear

in the bracket of complex decision making.

Rate in the order of importance the following brands.(on a scale of 1 to 6: 6- Most Popular - 1 - Least popular)

Thus we see according to the consumers the most popular (1st) Brand for Footwear is Bata, 2nd most popular brand is Reebok, 3rd is Nike, 4th is Liberty, 5th is Adidas, 6th is Action.

Rate in the order of importance the following aspects in the purchase of Footwear. (1 being most important and 5 being least important)

Cost Features Looks/appearance Brand name Advertisements

What was the basis of selection of Footwear’s?

The pie charts shows that mostly consumers look for all the above aspects in the purchase of Footwear but cost and features are the most important basis of selection.

Who influenced you in the purchase of Footwear’s?

Family members are the greatest influences in the purchase of

Footwear’s. Even sales person have rate role to play. Advertisements

also lead a mark on the consumer mind.

Who made the purchase decisions in the final purchase?

Are you satisfied with the products of Bata India Ltd.?

Mostly all consumers are satisfied with product infact somewhat satisfied. A major percentage of consumers (21% are neither satisfied nor dissatisfied. Some consumers (7%) are highly are satisfied with the product. But 16% of consumer are somewhat dissatisfied and 2% are highly dissatisfied.

SWOT ANALYSIS OF BATA

Strengths of Bata India Ltd.

It is an established brand leader for ages.

It is very popular in all the segments of society.

This product caters to the needs of all the age segments.

It has a very strong distribution network all over India.

It has a very strong market for school shoes and office shoes.

Weaknesses of Bata India Ltd.

Their designs are very old fashioned.

They are presently loosing their market share in metropolitan cities

in India.

They have no schemes or incentives for dealers.

Their dealer motivation is absolutely nil.

They are advertising very less now a days.

The promotional material given to the dealers and distributors are

very less and not very frequent.

The shoes designs available with them can’t be worn by people of

upper class and upper middle class.

Opportunities for Bata India Ltd.

By using the latest technology and give a new look.

They should start catering to the needs of upper class and upper.

They should introduce latest designs and fashions based on trends

of today’s market.

They should start advertising more on television and newspapers.

They should have more schemes for dealers and consumers.

They should concentrate more on dealers motivation and change

their perception towards this brand.

Threats

Introduction of new companies in diverse markets.

They are loosing their dealers network because of opportunities

from the other leading shoe companies offerings to the dealers.

They concentrating mostly on the lower and middle class segments.

Expectations of dealers for more schemes from companies to make

maximum sales.

Entry of International designs in the market making other shoe

designs old.

EVALAUTAION OF MARKETING STRATEGIES OF BATA INDIA LTD.

If you were to ask an Indian customer about the best footwear in the

eighties, the name that first popped in his mind was Bata. But that was

before private Indian and international brands came in. And made the

Canadian shoe maker look fuddy-duddy and worn out, so much that it

was almost kicked out of the market.

Though recognised as a household name in India, a financially

beleaguered Bata has managed to capture 24 per cent market share in

the organised footwear market. The company is now looking at a

turnover of Rs.8,400 million by the end of next year.

The company markets international brands like Weinbrenner, Hush

Puppies, Dr Scholls, Reebok, Adidas, and Azaleia. The other most

popular Bata brands include Power, Marie Claire, Bata School Shoes,

Sandak, Bubblegummers, Bata Hawai and Bata Industrial.

The new comers invested in snazzy retail outlets, with great displays

and interiors and also sold products, which were seen to be hip and

with it. But no more. Bata is making a comeback and with a

vengeance. With a range of stores that it promises will help draw in

customers like before.

BATA India Ltd — the country's largest manufacturer of footwear

products — is targeting a 12 per cent jump in turnover at Rs 840 crore

in 2005, against estimates of Rs 750 crore for the current year.

The Indian arm of the Toronto-based Bata Shoe Organisation, which is

in the process of restructuring its retail business and refurbishing its

1,600 stores across the country, has spent Rs 12 crore on the exercise

besides investing in technology at its plants in 2004.

The ongoing restructuring exercise involves ways and means to

increase their topline and bottomline growth. Bata India had been a

high cost structure company.

The company had posted a net loss of Rs 26 crore for the year ended

December 31, 2003 on a turnover of Rs 716 crore. The company hopes

to wipe out the accumulated loss by 2006 and is planning to introduce

another round of VRS in 2005 and is expecting around 700-800

employees to opt for the scheme.

Buoyed by the success of the 'Power' brand, which is witnessing an

increase of 15 per cent quarter on quarter, India's largest

manufacturer and marketer of footwear products Bata India Limited

launched the new range in the 'Power' category in December 2004..

The company also introduced, for the first time, what it calls a

`revolutionary product’ in the field of comfort footwear: Reverso.

The launch of the new range is part of their overall strategy to be

future ready and face competition head on. The emphasis is also on

presenting a contemporary and trendy brand image, which translates

to both its product and corporate culture.

As a step towards rejuvenating the Bata brand, the company is

repositioning itself as a market driven, fashion conscious lifestyle

brand with an emphasis on service and production.

The company recently introduced international styles and trends for

women, men and kids, which have gone a long way in providing a

trendy and contemporary image to the company.

Bata, reinventing itself as an international retailer and offering

customers the best in footwear in terms of fashion, quality and price

has introduced the concept of flagship stores to provide complete and

unique shopping experience at par with their stores abroad.

International trends, relaxed ambience, great products, and courteous

staff at the new-look Flagship store are all a part of Bata’s new

marketing strategy.

The new store, conceptualized by Bata and designed by renowned

architect-designer Sanjiv Verma, reflecting international trends, is

totally different from any other existing Bata stores in the country. Be

it in terms of colour, interior and product placements.

Further, to capture the retail boom prevailing in the country, the

company has decided to move its headquarters to Gurgaon this year.

Bata’s brand new collection of highly fashionable international range of

ladies footwear under the Marie Claire brand will be one of the major

attractions at this flagship store The store will also showcase top-of-

the-line brands including the latest international collection from

Weinbrenner, Hush Puppies, Bubble Gummer, Dr Scholls and Bata Tech

shoes. Brands like Nike, Reebok and Adidas will also be available. The

store will additionally offer trendy accessories like caps, T-shirts and

other lifestyle products - making it a complete one-stop shopping

experience for its customers.

The company's conscious decision to cleanse its wholesale business by

building relationships with credit-worthy buyers and converting three

of its wholesale depots to 'cash-n-carry' on a trial basis has started to

show positive result.

 In a bid to improve its logistics and distribution system, Bata has

made investments to the tune of Rs.20 million in the current year.

Large investments have also been made in the area of IT to integrate

approximately 150 stores on a real-time basis.

Thus the recent restructuring of the company’s retail division is

expected to add a fresh impetus to the vision of continuing to be a

truly global retailer, offering products to today's fashion conscious

youth as well as people from all walks of life is a challenge.

A recent statement issued by the company says that "it will continue to

remain a household name for the people of India - marketing footwear

for the family through a chain of modern large format retail outlets and

bringing in new trends and brands to suit the needs of both the

traditional and the trendy."

 

CONCLUSIONS

The market for the Footwear is undergoing a drastic change with many MNC’s entering Indian Market and showcasing and selling their products in India.

This research has implication for the manufactures of the Footwears particularly Bata India Limited as they can designed their product keeping in mind the consumer expectation and consumer buying behaviour. It also has great implications for the marketer as he can sell Footwear more efficiently and effectively after understanding the consumer decision making process. This research also enlightens the marketers that what role does features, cost, brand name, advertisements, and other aspects play in purchase of Footwear. The marketers can make sure how to motivate the consumers for their product after a thorough understanding of the analysis of this research.

So the job of the marketer is to identify the kind of problems the consumer is facing, the stage at which the consumer is and then prepare the marketing pitch.

Thus, a marketer can ask a number of questions to know more about the behaviour of his target customer at each stage of decision making: then he can make the best offer to the customer. Some such questions:

Thus, it considers the variables that are controlled by the marketer, such as product features, promotional factors, etc and those which are beyond the control of the marketer like socio cultural factors, influence of family, etc. Lot of these areas are covered in the questionnaire and is a part of the analysis.

Need Recognition

Is the need explicitly felt by the customer or is it dormant lying somewhere in the recess of their customer’s mind, from where it needs to be brought to the conscious level?

What could be the motivating force (functional/ psychological benefit) strong enough to drive a person to act?

What is the level of involvement with purchase?

Thus the marketers may think of the link between product attributes, benefits, and motivation to avail of the benefits.

Information Search

What information – quantitative or qualitiative – does the customer need?

How much information does he already have?

Is he motivated enough to search for more information?

Which media will he access to locate the information in?

Thus the marketers may show case the problem (if negative motivation) or opportunity (for positively motivated customer). Also he may make sure to provide adequate information in comprehensive form.

Alternatives Evaluation

What criteria does the customer use for evaluation?

Which competitive products (at generic level) and brands (at intra product category level) are being evaluated against this marketer’s brand?

What is his basis of evaluation, benefit maximisation (i.e. choose the brand which gives maximum benefit maximisation (i.e. choose the brand which gives maximum benefit compares with any other) or inconvenience minimisation (which brand is likely to give the least trouble, assuming that some/all brands have negative points)?

How does the marketers brand fair over those of the competitor’s?

Thus the marketers may relate product attributes to needs and wants and then motives so that brand enters the choice set. He may make sure that his brand has salience. He may talk about relevant motivator/discriminator. He may make sure that favourable influences are reinforced and negative ones are countered through effective communication.

Purchase

Does the consumer have money?

Will the offer have to be adapted to specific needs of the customer?

Does the customer want product with exact specifications or will he accept a near substitute also?

Which will be the intermediary channel that he will use for buying?

Thus the marketer can promote the his offer heavily while weakening the other marketer’s offers. He may reduce cognitive dissonance, while

increasing satisfaction. He will have to co-ordinate between the 4 P’s of marketing so that the consumer is motivated enough to purchase his brand of microwave oven.

Post purchase Evaluation

Is the customer satisfied/dissatisfied/ To what extent? Why?

Has he told others also about his consumption experience?

If dissatisfied, has he complained? On which platform?

Will he come back to repeat his brand purchase?

Thus the marketer should keep reminding the customers about his product and brand. By constant feedback from the customer, meeting and exceeding his expectations and serving him to satisfy and delight him, he may constantly claim his market leadership.

RECOMMENDATIONS

Bata India Ltd. is an established brand leader for ages and is very

popular in all the segments of society. But their designs are very old

fashioned and at present they are loosing their market share in

metropolitan cities in India.

It is recommended that they use the latest technology and give a new

look. To their existing products and also develop products in the Sports

and Luxury Segment.

It is recommended that they improve on their Sales promotion and

advertising to counter the competition they face from MNC’s like

Reebok, Nike and Adidas.

ANNEXURE

QUESTIONNAIRE

Name:

Occupation:

Address:

Income Level (Per Month):(a)<5000(b)5000m – 10000(c) 10000 – 20000(d)Above 20000

1. Do you use Bata Footwear?Yes No

2. Which brand of Footwear do you own?Bata Reebok Action Liberty Nike Adidas Any other (Please Specify) ……………………………………..

3. Do you perceive any significant differences among different brands of Footwear’s?Yes No

5. Rate in the order of importance the following brands.(1 being most important and 9 being least important)Bata Reebok Action Liberty Nike Adidas

6. Rate in the order of importance the following aspects in the purchase of microwave oven. ( 1 being most important and 6 being least important)Cost ----Features ----Looks/appearance ----Brand name ----Advertisements ----

7. What was the basis of selection of Footwear’s?

Cost Features Advertisements Brand Loyalty Any other (Please Specify) ……………………………………..

8. Who influenced you in the purchase of Footwear’s?Friends Family Members Relatives Advertisements Sales person Any other (Please Specify) ……………………………………..

9. Who made the purchase decisions in the final purchase?Yourself Spouse Yourself & Spouse Children Any other (Please Specify) ……………………………………..

10. Are you satisfied with the products of Bata India Ltd.?

Highly dissatisfied Somewhat dissatisfied Satisfied Somewhat satisfied Highly satisfied

Thank You