CALCUTTA BUSINESS SCHOOL

Project Report on

Submitted To Submitted By
Prof.Dr.Tamal Dutta Chaudhuri Prosenjit Roy,17014
PGDM 2017-19

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SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF POST
GRADUATE DIPLOMA IN MANAGEMENT

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INTRODUCTION

Bata’s 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

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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.

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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
th
the 8 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
th
novelty and the serfs. In the 10 century there began a long period marked by increasingly
th
pointed shoes. There were wasted, and often featured embroidered stitching. In the 11 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‖.

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 th
In the early 14 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
th
reduced in height. The high heel, worn by both men and women, was introduced in the 16
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century. During the 17 and 18 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.

th
In the late 18 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.

th
The industrial revolution of the 19 century was to bring about vast changes in the shoemakers‘
craft, transforming the art though mass production techniques into a rapid, highly automated,

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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.

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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
st
bears testimony to that. Bracing to meet the 21 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

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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.

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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

Methodology

The approach I adopted towards beginning and completion of project is outlined below.

TOPIC SELECTION:

Selection of the topic is the most important and difficult thing. Footwear Industry comprises of
organized as well un organized sector. It is a prime necessity, hence, we find number of brands in
this sector.

Leader Of Footwear Industry – BATA INDIA LTD.

OBJECTIVES:

“A Man Without Goal Is Like A Bird Without Wings."

After selection of the topic, field of study was finalized and objectives which are mentioned later
were determined.

SOURCES OF INFORMATION:

After understanding the data requirement, the sources of information were identified.

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Swot Analysis

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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.

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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.

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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.

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  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

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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.

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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.

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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

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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

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launching new molds as well as new PU-Rubber soles collection. The
customer service function has been strengthened to provide

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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.
Financial Ananlysis

Parameters MAR'18 MAR'17 MAR'16 MAR'15 DEC'13

(₹ Cr.) (₹ Cr.) (₹ Cr.) (₹ Cr.) (₹ Cr.)

Operational & Financial Ratios:

Earnings Per Share (Rs) 17.40 12.35 16.93 35.97 29.68

DPS(Rs) 4.00 3.50 3.50 6.50 6.50

Book NAV/Share(Rs) 115.05 103.11 95.08 154.89 126.52

Margin Ratios:

Yield on Advances 0.00 0.00 0.00 0.00 0.00

Yield on Investments 0.00 0.00 0.00 0.00 0.00

Cost of Liabilities 0.00 0.00 0.00 0.00 0.00

NIM 0.00 0.00 0.00 0.00 0.00

Interest Spread 0.00 0.00 0.00 0.00 0.00

Performance Ratios:

ROA(%) 11.58 9.17 13.64 16.14 15.89

ROE(%) 15.95 12.46 19.63 25.57 25.70

ROCE(%) 25.31 19.52 28.18 38.31 39.84

Efficiency Ratios:

Cost Income Ratio 0.00 0.00 0.00 0.00 0.00

Core Cost Income Ratio 0.00 0.00 0.00 0.00 0.00

Operating Costs to Assets 0.00 0.00 0.00 0.00 0.00

Capitalisation Ratios:

Tier 1 ratio 0.00 0.00 0.00 0.00 0.00

Tier 2 ratio 0.00 0.00 0.00 0.00 0.00

 CAR 0.00 0.00 0.00 0.00 0.00

Valuation Parameters:

PER(x) 41.97 45.94 29.95 15.16 35.60

PCE(x) 33.04 32.60 21.99 22.58 27.17

Price / Book(x) 6.35 5.50 5.33 7.04 8.35

Yield(%) 0.55 0.62 0.69 0.60 0.62

EV / Net Sales(x) 3.34 2.75 2.56 2.52 3.16

EV / Core EBITDA(x) 21.18 20.20 19.51 17.25 17.90

EV / EBIT(x) 24.78 27.25 19.77 19.63 22.09

EV / CE(x) 4.31 3.72 3.76 4.39 4.97

M Cap / Sales 3.57 2.96 2.70 2.60 3.29

Growth Ratio:

Core Operating Income Growth -1.12 -5.09 -11.14 35.44 9.42

Operating Profit Growth 23.87 5.91 -19.69 7.98 15.76

Net Profit Growth 40.84 -27.04 -5.87 21.20 11.15

BVPS Growth 11.58 8.44 -38.61 22.42 21.08

Advances Growth 0.00 0.00 0.00 0.00 0.00

EPS Growth(%) 40.84 -27.04 -52.94 21.20 11.15

Liquidity Ratios:

Loans / Deposits(x) 0.00 0.00 0.00 0.00 0.00

Total Debt / Equity(x) 0.00 0.00 0.00 0.00 0.00

Current Ratio(x) 0.00 0.00 0.00 0.00 0.00

Quick Ratio(x) 0.00 0.00 0.00 0.00 0.00

Total Debt / Mcap(x) 0.00 0.00 0.00 0.00 0.00

 Net NPA in Rs. Million 0.00 0.00 0.00 0.00 0.00

Suggestions & Recommendations

It is well said, “Nothing Is Permanent Except Change”

Here, I recommend some steps.

 Bata should carry on research to study the current design demands. The designs can be
imported from China, Malaysia, Indonesia.

 The production cost of those products which are high can be imported from other
countries.

 The human resource should be appointed as required. Curtailment affects customer

satisfaction.

 The Bata Shoe Stores, should be renovated as per market requirements.

 Instead of opening retail outlets, it should provide agencies with good profit margin to
private shopkeepers.

 Company should provide agency in rural areas to increase their sales. Bata should enter
the Malls.

 The outlets should operate 365 days with extended working hours.

Conclusion
 The marketing strategies of Bata are well designed, but with the passing time they are
required to be amended as per the current competitive demand.

The Bata Company should concentrate on increasing its sale through agents and dealers
instead of increasing its outlets which ultimately increases overheads.

Bata, because of superior quality and customer preference is the leader of the industry.
Slight modifications in current strategies will assure that it remains on the top.

Bibliography
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