Report-on-Marketing-Mix-of-BataShoe-company

The Footwear Industry in Bangladesh has started since the colonial era,
although its modernization took place only in the late 1980s. When Bata
Shoe Company established its manufacturing plant at karachi in 1962, it
was the first manufacturing plant to produce shoes on a large scale in East
Pakistan. The local footwear industry is experiencing an annual growth
rate of 21 percent, according to leather goods and footwear
manufacturing and exporters association of Pakistan.
Pakistanis set to emerge as the next manufacturing hub for the global
footwear industry. The cheap labor is prompting top manufacturers to
relocate their factories in the country. The good news is that a number of
foreign investors as well as buyers have already shown interest in
Bangladeshs leather and footwear sector. Pakistan has a host of potential
products that can earn substantially large amounts of foreign exchange.
Japan and Germany are now the biggest markets for Bangladeshi
footwear but US buyers are increasingly showing interest in sourcing
from Bangladesh.
Bata Shoe Company is the market leader in the footwear industry since
its operation in Bangladesh. The name Bata achieve such a position in the
customers mind that whenever they heard the name of Bata, a footwear
with high quality comes in to their mind. Bata has been serving its
customer with wide assortment of products for about five decades and
doing it successfully. It is very difficult to identify the customers class of
Bata Shoe Company. Bata meets the footwear demands of the higher
class and lower class simultaneously. It has developed a strong
distribution channel all over the world through the establishment
approximately 6,300 retail outlets, 10,000 franchises and thousand of
depots and dealers. More then 50,000 people are directly involved in the

production and selling of over 300 million pairs of shoes each year. Bata
Shoe Company manages a retail presence in 55 countries, and runs 40
production facilities across 26 countries. Bata international headquarter is
located in Switzerland which was previously located at Toronto, in
Canada. In recent times Bata Pakistan has lunched more then 180 new
designs for different brands in their men, women, children and infant
categories.

INTRODUCTION TO THE
ORGANIZATIONAL OVERVIEW

MARKETING MIX OF A FOOTWARE INDUSTRY

IN Pakistan: A STUDY BASED ON BATA SHOE
COMPANY LTD.

INTRODUCTION

TO

THE

ORGANIZATION

OVERVIEW
Introduction
Bata Shoe Company is the market leader in the footwear industry since
its operation in Bangladesh. The name Bata achieved such a position in
the customers mind that whenever they heard the name of Bata, footwear

with high quality comes into their mind. Bata has been serving its
customer with wide assortment of products for about five decades and
doing it successfully. It is very difficult to identify the customers class of
Bata Shoe Company. Bata touch almost very social class possible. Bata
meets the footwear demands of the higher class and lower class
simultaneously. However to stay closer to the customers, Bata shoe
company undertakes an assessment of the customers at a regular interval.
Bata desire to fulfill the ever changing customers needs and to do so the
outcome of the customer assessment plays a significant role. Here the
similar study undertaken with a permission of Bata Shoe Company to get
the feedback from regular customers. The questionnaire is taken from
Bata shoe company PakistanLtd to conduct the survey among the regular
customers. This study is analysis marketing mix of Bata shoe company
commitment to service continues to this day, from the designers
sketchbook through to the performance of our shoes on a customers foot.
Bata companies strive to supply the right products, at the right time, at the
right price, and in a manner that fulfill our service commitment to both
retail and wholesale customers.

Footwear Industry in Pakistan

The Footwear industry in Pakistan has started since the colonial era,
although its modernization took place only in the late 1980s. During the
British period, there was no Footwear manufacturing firm producing on a
mass scale in East Bengal. However a traditional cottage type Footwear
industry with limited production facilities existed in a skeleton from in
the district towns during the time. Various types of footwear were
imported, mainly from Calcutta. After the partition of Bangle in 1947,
footwear was imported from West Pakistan.

When Bata Shoe Company established its manufacturing plant at Tongi in

1962, it was the first manufacturing plant to produce shoe on a large scale
in East Pakistan. In 1967, Eastern progressive shoe industries (EPSI)
established its production plant. It began exporting footwear
to USSR, Czechoslovakia and England. Both Bata and EPSI held major
shares in the local footwear market. The footwear industry suffered a
major setback during the war of liberation but was rehabilitated after
independence. Now footwear manufacturing units have recently been
established. Among them are Apex footwear, Excelsior shoes, and
paragon leather and footwear industries.
Japan and Germany are now the biggest markets for Bangladeshi
footwear but US buyers are increasingly showing interest in sourcing
from Bangladesh. Pakistan could have a billion dollar footwear export
sector by 2013, claim local shoe manufactures on the basis of both the
current growth in shipments and the increased production capacity in
factories under construction. If there assessment is correct, in the three
year period the level of exports can increase five fold from the $205
million worth of shoes that were exported in the last fiscal year that ended
in June 2010.

Multitude of Products
Pakistan has a host of potential products that can earn substantially large
amounts of foreign exchange, if only the necessary patronage from the
overseas buyers is given from the sack of expending the countries export
base and thereby reach a sustainable status for the countries export trade.

Recently, a new opportunity has opened up to further diversify the range

of Pakistans exports base by including footwear and other leather goods
in the list of exports particularly to the European Union (EN) market.
However, the country has already been exporting finished leather and
different kinds of leather products to the overseas market. These products
also enjoyed considerable demand because of their high quality. The main
reason for this was the natural advantage of leather that Pakistan
produces. Despite the high quality6 of local animal hides both in raw and
finished from, Pakistan was still trailing behind Vietnam and china in the
export of footwear and other leather products in the European and other
market.

OVER VIEW OF
BATA SHOE COMPANY

OVERVIEW OF BATA SHOE COMPANY

Brief history of Bata Shoe Company
Bata Shoe Company was founded by the famous entrepreneur Mr. Tomas
Bata who blew the wind of change in the footwear industry in 1894. The
company was started from zlin, Czechoslovakia, now known as the Czech
Republic. From that day onward Bata Shoe Company has been the largest
manufacturer and marketer of footwear in the world. The global business
of Bata comprises of shoe factories, tanneries, engineering plants, quality
control laboratories, product development and research centers.
Bata has developed a strong distribution channel all over the world
through the establishment approximately 6,300 retail outlets, 10,000
franchise and thousands of deports and dealers. More then 50,000 people
are directly involve in the production and selling of over 300 million pairs
of shoe each year. Bata Shoe Company manages a retail presence in 55
countries, and run 40 production facilities across 26 countries. Bata
international headquarter is located in Switzerland which was previously
located at Toronto, in Canada.

Bata today

. Serve 1 million customers per day

. Employee more then 50,000 people
. Operates 5000 retail stores
. Manages a retail presence in over 70 countries
. Run 27 production facilities across 20 countries
2.2 Bata Business
Bata shoe organization companies are involved in every facet of the
business of shoes. Throughout the world, Bata services customers from
the store sales floor to the factory floor.
Retailing

Bata shoe organization companies have built successful retail store

concepts to satisfy changing customer tastes and needs. Each store futures
merchandise targeted to different lifestyles and people. The merchandise
ranges from footwear to clothing and goods complementing shoe
offerings. Sensitivity to and satisfaction of customer wants and needs has
allowed the Bata shoe organization (BSO) to became a world leader in
footwear.
Manufacturing
Tomas Batas revolutionary business concept was to industrialize the shoe
making process of that day. That type of thinking has been the driving
force behind the Bata shoe organization success. The Bata shoe
organization has been an innovator in the manufacturing of shoes over the
year. Bata personnel have made important. Advances in DVP (Direct

vulcanization Process), PVC, athletic footwear

production and slush

molded footwear production.

Wholesaling
The Bata shoe organization (BSO) enjoys a unique position in the
wholesale marketplace. Global economies of scale enable BSO plants to
offer quality products at local prices, with many are operating at ISO
standards. Bata shoe organization production facilities are world
renowned for their commitment to quality and customers, and have
attracted production contracts from many international footwear brands.

Brands & Product Development

Throughout the world, the Bata brand distinguishes well made and well
priced footwear. Many core articles for Bata branded collections are
designed in product development centers in Italy, the Far East and
Canada. Designers and merchandisers in Bata shoe ionization companies
broaden the collections by developing complementary styles to reflect
tastes, budgets and climates within their own market. Strict quality
controls govern the selection of materials and all production stages.

Business units of Bata shoe company

Bata is operating business in five business units such as Europe, Asia
pacific, Latin America, North America, and Africa. Bata announces its
worldwide presence through these five business units.

Business units of Bata shoe company

Worldwide coverage of Bata

Red zones have already been entered by Bata shoe Organization.

Worldwide coverage of Bata

Bata shoe company (Pakistan) Ltd.

Bata shoe organization started its operation in Pakistanin 1962. The
company was incorporated in1972. The company is affiliated to the Bata

shoe company, the largest footwear manufacturing and marketing

organization.
According to Bata Pakistan website (2010) it is mentioned that currently,
Bata Pakistan operates 2 manufacturing plants at karachi and Lahore,
have production capacity of around 1,10,000 pairs of shoes daily. It has a
modern tannery with the latest technological facilities to process 5
million square feet of leather yearly. The tannery is equipped with a high
tech effluent treatment plant ensuring a pollution free environment for
booth workers and the environment. Bangladeshs regional headquarter is
located in Singapore.
Bata is playing a pivotal role in developing the leather industry of the
country. Bata has a firm commitment to eco- friendly business and a state
of the art Effluent treatment plant (ETP)

has been set up to provide a

pollution free environment for booth workers and the locality.

Fashion would never be complete without a well designed pair of shoe.
This marketing insight has promoted Bata to introduce a number of
designers collection for men, women and children.

Internationally

renowned brands such as Bata comfit, Marie Claire, Hush puppies,

Scholl, Nike, Bubble gummers, Sandak, Weinbrenner and B First are a
few names that testify to the momentous change towards branded shoe
marketing in Bangladesh. Specialized shoe categories such as athletic
shoe have been targeted through development of the power brand.
Uncompromising quality with striking designs have put Bata shoe in a
key position to appeal to different segments of consumer.

Another major change in the Bata business policy is the segmentation of

retail outlets according to profiles of different market segments and the
introduction of novel concepts such as Bata city stores. These selective
outlets, in conjunction with
Other types of outlets such as Bata Bazar and Bata family store, are
adding a new level of consumer satisfaction.
The city stores incorporate spacious floor space allowing a comfortable
shopping experience, modern interior decor enriched with novel shelving
systems, fittings, fixtures and lighting that can be found in the large retail
shops in the Far East and Europe. Bata has a network of 242 retail outlets
located strategically in different parts of the country. These retail outlets
are an integral part of our brand marketing. This extensive retail network
is supplemented by an equally extensive network of depots and dealers.
Bata has 13 wholesale depots covering Bangladesh. Under these depots
390 RWD (Registered Wholesale Dealers) and 553 DSP (Dealer Support
program) stores are operating. Bata Pakistan has already developed its
vision up to 2013 showing significant business growth as well as
increased market share.
One of the critical areas associated with external shareholders and the
community at large is the corporate social responsibility program of the
company. From supporting nationwide sports sponsorships and disabled
persons to addressing environment concern, scholarship program, charity
contribution etc Bata has always supported individuals and
communities in need. Partnerships with other voluntary and charitable
organizations are another prominent feature of Batas corporate social
responsibility. Bata, in partnership with CARE, extends assistance to over
two thousand rural women in order to become independent entrepreneurs

in the Rajshahi, Camilla and Chittagong division selling shoe from door
to door under its rural sales program.
Through maintaining the quality. In recent times Bata Pakistanhas
lunched more then 180 new designs for different brands in their men,
women, children and infant Categories. Eventually they have received
excellent responses from their various target groups on the new designs.

Customer service
Personalized service
Qualified and enthusiastic sales associates are engaged who take
customers satisfaction to heart. In many countries customer service goes
beyond the store with home deliveries, orders made possible via
catalogues, the web or even call centers.
Guaranteed customer satisfaction
In any Bata store in the world they repair, exchange or refund any
products with defects. They also exchange or refund on unworn
merchandise if one changes ones mind. Proof of purchase is required for
refunds.

Mission & vision

Bata Shoe Company has been successfully running for years with a
mission and vision at the heart of all its operations.

Mission
Introduction of a strong shoe line targeted to various market segments to
maintain leadership through increased market share.

Vision
To provide good quality shoes at an affordable price by keeping in mind
the comfort that needs to be there and providing new designs with it.

Environmental Mission
To protect our people customers and communities and to protect our
natural environment in order to help sustain human development globally.

Bata business Types

Bata business policy is the segmentation of retail outlets according to
profiles of different market segments and the introduction of novel
concepts. Bata retail store are categorized into four types:
City Stores

Bata city stores offer the urban customers a wide variety of current
fashion footwear and accessories. There are 25 city stores in Bangladesh,
16 in Dhaka metropolitan area, other in Chittagong, Sylhet, and in
Mymensingh metropolitan area. These stores are established in prime
locations, and provide a high level of customer service, exclusive shoe
lines with complementary accessories and contemporary shopping
environment are to discerning shoppers.

Mall Bata store (city store)

Family Stores
Bata Shoe Company is undoubtedly the worlds leading family footwear
chain. The company offers a wide assortment of every days fashion
footwear. The products are primarily of the brand Bata. Nevertheless very
carefully selected articles from both local and international brands are
also marketed by the company. There are 60 family stores till date that
has been successfully operated all over the Bangladesh.
Bata Bazar
Bata Bazar is the largest display of Batas products among all others store
concepts. It provides the customer with broadest range of products and
accessories possible. This concept was introduced in 2003. They are
ideally located in power centers commercial parks and outlet centers with
easy parking facilities. There are 73 Bata bazars being operated.

 Clearance Outlets
There are three Clearance outlets of Bata Shoe Company where
discounted shoes are sold.
Discounted shoes at clearance outlets

SWOT Analysis of Bata shoe company (Bangladesh) Ltd

Strengths:

High quality products

Strong Brand image

Extensive product lines

Strong and mass distribution network

Wide range of associated brands

Skilled management team

Modern manufacturing facilities

Potential target market

Loyal customers

Weaknesses:
High price
More emphasize on quality rather than design
Lake of promotional activities
Less effort to attract new customer
High cost structure
High import duties
High administrative cost
Vat & tax barrier
Opportunities:

Wide assortment of products offered

Better customer service

Rise in export

More emphasize on product quality and design

Strong retail store network

Neat & clean retail outlets

Trained salesmen

Threats:

Apex is considered the biggest threats

potential new brands like Bay Emporium

Counterfeiting of Bata shoes in uncontrolled locations

Consumer perception regarding high price

High price due to high production cost

Disruption of consistent supply

Switching new generation to trendy products

Political
Political factors are those which are directly controlled by
Government and political parties. These factors can
influence directly to companys strategies and policies. Bata
is operating in number of countries like Europe, Africa, Asia,
the Middle East, and Australia so it has to pay a close
attention to political climate of these countries. Bata cant
isolate its one operating country from others as their system
is highly integrated so they have to monitor consistently not
only the political situations but laws and regulations also.
While talking about Bata Pakistan, political instability is one
of the biggest thread for them. Rapid changes in political
governments effect badly on companys growth. With every
change in political government policies and procedures of
trade also changes. So Bata have to manage and reshape its
strategies. But now a days political government is
supporting industries and giving them subsidies. Trade tariffs
with neighbor countries are also lower down which is a good
sign for Bata Pakistan, where they can easily import raw
martial India and China. India a big hub for Bata company
and Bata Pakistan has to import time to time different raw
martial through India. Another problem we are facing is
terrorism. Terrorism is one of the major problem of Pakistan.
Now a day it is the most crucial hurdle in growth of
industries. Energy crisis is another factor which demolishing
industries growth heavily. It causes lower and costly
production which leads to lower profit margin and ultimately
downsizing to unemployment. One good thing is that now

government is trying to develop industry safety

regulations, basically an effort to support and give
maximum protection to industry sector to make it more safe
and stable.
Economic
Economic factors are directly controlled and influenced by
financial institutes like State Bank of Pakistan, so they help
the industry in giving economic soundness and provide
financial aid to industry to survive at the time of crises.
Operating in number of different countries Bata has a global
economic perspective with focus on each individual market.
Operating in large number of markets give an edge to Bata to
learn from different market experience, so when they face
any variable economic changes in the market they can gather
information and resources from all over the world to address
any issues. In Pakistan overall economic conditions are not
very good as the inflation rate is increasing day by day.
Currency vale is also decreasing at the same rate which
lowers down the buying power of consumers like
Currency fluctuations can equate to higher or lower demands
for Bata shoe which in turn affect profitability. It can also
mean a rise in costs or a drop in returns which is a clear
threat for a company. We are holding approximately $$$ %
interest rate which is among the highest in world so it makes
very difficult for any industry like Bata to have its economic
activities smoothly. One advantage to Bata in this regard is
the lowest labor rates. At the end of 2013 financial year
Pakistan has the lowest industrial labor cost among other

countries (including very minimal labor laws), which is an

opportunity for Bata.

Social & Cultural

Social trends and the demographics are the key elements that
are taken in consideration to do business in any country.
Each country has different culture and trend basing on their
norms and values. Now people are becoming more health
conscious, which means more people are moving towards
work-outs and different games. To cater these all Bata had a
large number of product range to satisfy different segments
with different needs and demands. Like females are coming
to games and athletics more than ever, keeping them in view
Bata launch a full range of Female Sports shoes (Power).
Brand awareness in rural areas is another problem Bata is
facing. Strong media support towards brands awareness can
influence these people decisions about shoes.
Technology
Technology is the best weapon to win the war of
competition in these days and Bata Company is a head in the
game of technology field. The Bata operates in more than 80
countries world-wide. This enables Bata to have lots of
experience and resources to draw from for research and
development purposes. According to one of their department
head, The foundation of the companys growth is a deep
understanding of economic stimuli and customer needs, and
the ability to translate them into customer-desired offerings
through leading edge R&D (Bata). Bata have a strong R&D
department whose activities are carried out in key areas of
production, process and martial. R&D department also
emphasizes on solid waste utilization to create a pollution

free work environment. Automation is another recent goal on

which Bata is working. All over the world companies are
moving from labor intensive to automated plants.

2.10 Achievement
In 2010, Bata Shoe Co (PK) Ltd wins Super brands award. Supar
brands is a unique brand not only Pakistan but also international
renowned brand and have a good brand image all over the world. In
Pakistan only Bata shoe co (PK) Ltd has achieved this awarded.
Sponsor

Bata was official clothing sponsor of the Pakistan Cricket

Team

MARKETING MIX OF
BATA SHOE CO (PK) LTD

Marketing Mix
The marketing mix is probably the most famous marketing term. Its
elements are the basic, tactical components of a marketing plan. Also
known as the Four P's, the marketing mix elements are price, place,
product, and promotion. Read on for more details on the marketing mix. The

concept is simple. Think about another common mix - a cake mix. All
cakes contain eggs, milk, flour, and sugar. However, you can alter the

Marketing Mix

Product

Price

Place

Promotion

Chart 1: Marketing Mix

Product
Bata offers a number of product lines to the prospective consumers in the
existing market. Bata has truly international team whose diversity of
ideas to develop new style footwear, shocks, sneaker, etc. Bata has
introduce huge product line of men footwear shows, sandal, sneakers,
shocks, women footwear, kids footwear and many other types of
footwear line the company is operating in the market. About half line of
product the company imports and sells under the franchising. Bata also
sell ten international brands footwear at their retail shop.

Premium collection
Bata has been delivering hand crafted quality footwear over100 years to
maintain and build on heritage of creating high quality, comfortable and
stylish shoes.

Brands
Bata store carry following shoes brands:
Hush Puppies
Weinbrenner

 Nike
Power
North Stare
Bata Comfit
Sandak
Bubble Gummers
Marie Claire
Scholl

Figure 8: Bata brands logo

Hush Puppies
Hush puppies is the international brand, Bata uses the franchising power
to supply the product in the Bangladeshi market. The target customers of
this model are rich people. Basically it is an American brand.

Hush Puppies
Weinbrenner
The Weinbrenner shoe line is made up of leather shoes and boots, style in
low, mid, and high cut. Cuts or design are directly fashion, but can
include materials which help to fell comfort in doing outdoor strong
works. The shoes are casual in style closures generally with laces and
eyelets, sometimes supplemented with hooks, D- rings and straps with
buckles.

Figure 10: Weinbrenner

Nike
Nike is a worldwide famous and popular athletic shoe brand. Bata carries
this brand as a licensing. This brand is for a different segment of
customers in Bangladesh. Though it is an athlete shoe but in
Pakistanyoung generation wear it as a fashionable product. The target
customer of this product is higher income group people.

Figure 11: Nike

Power
Power is also an athlete shoe which is considered as the alternative of
Nike. Power shoes are cheaper than Nike shoes. The target customer of
this shoe is middle class people.

Figure 12: Power

Bata Comfit
Comfit has an important feature in design and assembly of all the comfit
shoes. This brand is focused on both comfort and style of shoes. Unit
rubber, PVC, PU or TRR sole are commonly used in this brand. Get
comfortable today is a tagline commonly associated with this range of
shoes.

Figure 14: Bata Comfit

Bubble gummers
Bubblegummers is the leading childrens footwear brand in Latin
America and has developed an extensive presence in Asia and in Europe.
Bubblegummers offers quality, comfortable, funny and colorful shoes for
the 0 to 9 age that assure the healthy growth of a childs foot.

Figure 16: Bubblegummers

Bata
Bata is the old and own brand of Bata Shoe Company. But by the time
being this brand is updated to fulfill the customers demand.

Placement
Bata has a network of 250 retail outlets located statically in different parts
of the country. This extensive retail network is also supplemented by an
equally extensive network of deports and dealers. The retail outlets are
segmented according to the profile of customer and different market
segments. According to the segmentation the three different types of
outlets are
Bata City: The city stores incorporate spacious floor space
allowing a comfortable shopping experience, modern interior
enriched with novel shelving systems, fittings, fixtures and
lighting. The city stores are established in prime location of
metropolitan city. Among the 25 city stores 16 are established in
Dhaka and other in major business area.
Bata Bazar: Bata Bazar holds the largest display of Batas
products consisting wide range of assortment. It provides the
customers with broadest range of products and accessories in a
different price range possible. But exclusive brands and products
are not been sold here. This concept was introduced in 2003.
Bata Family: It is more a like a clearance outlet. Most of the
products which are been sold here are in sale.
These three types of stores are serving different segment of target market
and adding a new value in customer satisfaction.

Price

Bata use price- quality leadership approach. They set the price based on
value. In some country they target high quality niche and in some country
price sensitive segment. Every where they set the price based on value
they delivered.
Bata follow geocentric pricing techniques. According to the demographic
features the local pricing for Bata shoes for men, women and children is
given bellow:

Category

Highest [BDT]

Lowest [BDT]

Men Dress

6990

990

Men Summer

4490

550

Women Dress

5490

1390

Women Summer

2490

690

Athletic footwear

1390

12000

Children footwear

290

1290

Sandak/Sandals

120

90

Pricing of Bata Shoes

Promotion

Bata has put less effort in promoting their products. They think the 250
retail outlet throughout the country helps Bata to do integral brand
marketing. Other then that they are the official clothing sponsor of
PakistanCricket Team. However Bangladesh, Bata has done many
promotional activities like:
TV campaign
Print advertisement
Outdoor (Billboard)
Web based E- flyer, SMS
Among all those promotional activities they have emphasized on outdoor
advertising in Bangladesh.
Promotion is the business of communicating with customers. It will provide
information that will assist them in making a decision to purchase a
product or service. The razzmatazz, pace and creativity of some
promotional activities are almost alien to normal business activities.

 Recommendations
From the research it is evident that Bata has a large loyal customers base
throughout Dhaka city who are more or less satisfied with Batas products
and services. For now it seems that word of mouth and brand recognition
are in a quite secure position. However Bata can take some steps to
improve their customer relationship and to attract new potential
customers.
Bata fails to reflect up to date fashion shoes for its customers.
Customers think that other competitors always bring fashion shoes
for the customers. If Bata can bring up to date products in the
market place, the sales return of the company undoubtedly
increased into double. It is also recommended that Batas market
share will increase by up to date fashion shoes.
Bata has good brand awareness but their lack of promotional
activity causes many of the new offering unnoticed. To overcome
this difficulty Bata can introduce brochures (direct mail), news
paper ad regarding their new arrivals and price discount scheme.

Conclusion
Bata Shoe Company is the market leader in the footwear industry
since its operation in Bangladesh. The name Bata achieve such a position
in the customers mind that whenever they heard the name of Bata, a
footwear with high quality comes in to their mind.