Company Tracking

Group Project for Marketing Management II

 INTRODUCTION

“IF YOU WERE TO ASK A CUSTOMER ABOUT THE BEST FOOT

WEAR IN THE EIGHTIES, THE NAME THAT FIRST POPPED IN
HIS MIND WAS BATA. BUT WHAT HAPPEN NOW….”

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.

Its first factory was set up in Konnagar in 1931 which was then shifted to Batanagar.
Incorporated as Bata Shoe Company Private Limited in 1931, the company went public
in 1973 when it changed its name to Bata India Ltd.

The Company manufactures quality leather, rubber, canvas and PVC shoes in wide-
ranging designs and styles at affordable prices. Batanagar factory is the first Indian shoe
manufacturing unit to receive the ISO 9001 certification in 1993.

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.

Today it is one of the leading and trusted brands in Indian rural markets. Bata India is not
only updating its classic and traditional footwear collections, but also introducing a new,
contemporary footwear range every week. The new designs are being launched for men,
women and children, in both lifestyle and sports category.

BATA: OVER THE YEARS

1894  The T. &A. Bata Shoe Company is registered in Zlin, Czechoslovakia by the
siblings Tomáš, Anna and Antonín Bata. Innovative from the beginning it
departs from century old traditions of the one-man cobblers’ workshop.
 

1909 First export sales and first sales agencies in Germany, in the Balkans and in the
Middle East. Bata shoes are of excellent quality and are available in more
styles than had ever been offered before. Demand grows rapidly.
 

1922 Following the first world war currencies are devalued and consumer
purchasing power is at an all time low. Bata cuts shoe prices by 50%; stores are

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 flooded with customers forcing the industry to follow the lead.

1932 At the time of Tomas Bata’s tragic death in a plane crash the company
intensifies diversification into the production of tires, aircrafts, bicycles,
machineries. Still a young man, Thomas J Bata, his son, convenes the 1 st
international congress of young Bata people.  

1939 Bata operates 63 companies in various industries but footwear remains the core
business with 60 million pairs sold per year in more than 30 countries. 

1960s The Company’s headquarters are officially relocated in Toronto under the
leadership of Thomas J Bata. The Company expands its international reach
through new factories serving local markets.
 

1970s Private labels are created to be marketed to new customer segments:

Bubblegummers, Power, Marie Claire, North Star.
 

1980s Retail excellence is becoming even more important. Bata develops a variety of
retail concepts such as Bata city stores, large format stores and sport concept
stores.
 

1990s Creativity, product innovation and research for higher quality levels lie at the
core of Bata product development policy. The result is the international high
standard Bata Premium collection.
 

1999 To adjust to the market evolution Bata undertakes a major reorientation from
manufacturing to designing, marketing and distribution.
 

2001 Thomas G Bata, founder’s grandson becomes the Group’s chairman. A new
international structure is implemented around 4 meaningful business units
(MBUs) to give more focus to the business and gain synergies within each
region, especially in sourcing and product development.
 

2002 As part of re-inventing its core competencies, Bata Shoe innovation Centres
open around the world to focus on the development of shoes with exclusive
comfort technology features and designs.
 

2006 Start of the 262 acres Riverbank township construction to modernize the
Batanagar factory complex, near Kolkata. It is expected to be completed by
2011 with 2500 modern housing for employees, a large hospital, a school, an
IT park, a hotel and residential flats along the riverside.

Launch of the Branded Business Division to consolidate our existing

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 worldwide branded business activities into a leading industrial and professional
footwear company.
CURRENT MARKET SCENARIO:

The Indian footwear market is estimated to be over 10,000 Crores in value terms and is
growing at the rate of 810% over the years. In this Men’s footwear account to be 50%,
whereas, women’s share constitutes to be 40% and the remainder are covered by kid’s
segment. In this total market demand, about 42% are brand-driven. And bata is covering
about 12% of the organized footwear segment.

BATA TODAY:

 1300 retail outlets all over the country;

 Serves 1 million customers per day;
 Employs more than 40,000 people;
 Operates 4,600 retail stores Worldwide;
 Manages a retail presence in over 50 countries;
 Runs 40 production facilities across 26 countries;

MAJOR RETAIL BRANDS IN INDIA

RETAILER PRESENT IN NO CITIES

Bata All cities
Liberty 225
Metro 31
Woodland Across India
M& B Footwear All major cities
Regal Shoes 7
Loft 2
Khadim’s East & South of India
Sree Leather West Bengal, Orissa, Bihar

BATA STORES IN INDIA

Due to clear segmentation in the footwear industry the Bata stores are of following four
types
 Bazar stores
 Family stores
 City stores

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  Flagship stores

BAZAR STORES:

These are the stores which serves the volume market. These stores of Bata are located all
over the country. These stores are located in the local markets of each city and town.
They offer high value for money and variety. This is the most common form of Bata
stores.

FAMILY STORE:

Factory stores first opened in 2003 and are the largest and the most value-oriented stores
of our retail chain. They are ideally located in power centres, commercial parks and outlet
centres with easy parking facilities. The product selection offers more than 10,000 styles
of ladies, men, children and sport shoes with related accessories and apparel sold at
attractive price points. It is based on a self service concept with helpful staff available for
service at anytime.

CITY STORE:

Bata operates stores in many of the big cities. Bata City Stores offer urban customers the
best in today’s fashion footwear and accessories. These stores are in prime locations in
the cities, and provide a high level of customer service, exclusive fashion shoelines with
complementary accessories, and contemporary shopping environments to discerning
shoppers.

FLAGSHIP STORES:

Bata Flagship Stores offer a wide assortment of fashion, casual and athletic footwear for
the entire family. Located primarily in urban and suburban shopping centres, these
spacious stores offer the best value by providing good quality shoes at great prices.
Service is fast thanks to a self selection shopping environment with qualified staff to
serve and assist. One of the cornerstones of the Bata Flagship Stores is the sports area: a
real store within a store. All the key international sports brands are featured, carefully
selected for the most discerning customers.

BATA STORES SOME FACTS:

Initially the Indian stores of the shoe brand were owned by the company. This resulted in
the shopkeepers becoming averse to the increase in the competition from the other
international brands like ADIDAS and REEBOK which were flooding the Indian
markets. These brands not only had better distribution policies, they were also advertising
their footwear more aggressively. The local shop owners did not pay any heed to this
threat from the global brands, and even if they did, they lacked the competency to
compete with them. This had resulted in growing losses for the company.

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 Then the company decided to start franchising their stores to the owners instead of hiring
them for selling their shoes.

1. Bata’s product mix

Kid’s Men’s Ladies

Accessories
footwear footwear footwear

CASUALS FORMALS FORMALS

Bubble gummer Bata Bata Socks
Hush Puppies Marie Clair Hand bag
SCHOOL North Star School bag
North Star ID SANDLES Caps
Tiger Lee Cooper Marie Clair Shoe polish
Bata Shoe Brush
CASUALS Shoe Laces
Bata SPORTS Belt
Hush Puppies Power
ID Lotto
North Star Rbk
Weinbrenner Port Land
Lee Cooper

SPORTS FOOTCARE
Power Dr. Scholle’s
Lotto
Adidas SLIPPERS
Rbk Bata
Nike Sandak
Portland

FOOTCARE
Dr. Scholle’s

SLIPPERS
Bata
Sandak

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2. Segmentation, Targeting and Positioning of Bata’s Product lines:

Kids wear

Bata deals with two brands to serve the kids footwear market. Both cater the same
segment whereas the target & way it is positioned differs based on the need &
economic status.

Segment:

 Kids up to 14 years of age.

Casual: Bubble Gummer

Target:

 Kids of middle & upper class families.

Positioning:

 Superior quality
 Soft
 Attractive
 Fashionable

School Shoes: North Star & Tiger

Target:

 School going children up to 14 years of age

 Children of lower middle class to upper class families.

Positioning:

 Long lasting
 Comfortable
 Low maintenance
 Affordable price

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 Men’s Footwear

Bata’s footwear for men’s have both own brand and tie up brand products. They cater to
different social class. It’s own brand “Bata” has variants in all the economic segments
whereas it’s tie up brands are specific to a particular economic segment.

Segment:

Men above 14 years of age.

Formal Wear:

Target:

Its main target is high school students to working executives.

Economic Status Brand/s

Upper Bata, Hush puppies, Lee cooper
Upper Middle Bata, I D
Middle Bata, North Star

Positioning:

1. All brands are positioned as comfortable and durable.

2. Brands for Upper middle class and above are positioned as shoes looking
elegance & class, having new technology, more comfortable finishing and better
material.

Casual Wear:

Target:

Students and working executives.

Economic Status Brand/s

Upper Bata, Hush puppies, Lee cooper, Wein brenner

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 Upper Middle Bata, I D
Middle and lower middle Bata, North Star

Positioning:

1. Brands for middle & lower middle class are promoted as comfortable, durable and
good looking.
2. Brands for upper middle and upper are positioned in a fashionable and stylish
way.

Sports:

Bata doesn’t have a brand in its own name, whereas it manufactures the brand “Power”.

Target:

Sports shoe variants doesn’t have a separate target. They are used by men for both
sports & style. They are targeted mainly for young adults and students who use
this more for style rather than for sports. Bata doesn’t emphasize on professional
sports shoe. Its variants are rather for general purpose sports utility.

Economic Status Brand/s

Upper middle and above Rbk, Nike, Lotto, Adidas
Middle Power, Portland

Positioning:

1. The brands for upper middle and above are positioned as stylish, powerful,
comfortable and of the latest fashion & technology.
2. The middle class brands are promoted as modern, comfortable, durable and
affordable.

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 Ladies footwear:

Apart from its own brand, Bata has tie up with Mari Clair for its women range of formal
and casual shoes. Both are in the price range suitable for middle class and above.

Segment:
Women above 14 years of age belonging to the social class “middle class and above”.

Formal Wear:

Target:

It is targeted for adult students and working women.

Positioning:

All brands are positioned as comfortable, durable, trendy and modern.

.
Casual Wear:
Target:

Targeted at women of all age belonging to the social class “upper middle and
above”.

Positioning:

Positioned as high quality, trendy, comfortable and durable footwear.

Sports:

Target:

These are used for both sports and style purpose and hence targeted at young
women of age group 16 to 35.

Economic Status Brand/s

Upper middle and above Rbk, Nike, Lotto, Adidas
Middle Power, Portland

Position:

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 1. The brands for upper middle and above are positioned as stylish, powerful,
comfortable and of the latest fashion & technology.
2. The middle class brands are promoted as modern, comfortable, durable, stylish
and affordable.

Slippers (For both men and women):

Bata has its own slipper range namely Sandak & Bata hawai which is made for both
men and women in all range.

Segment:

People of all class, ranging from lower middle to upper and of all age groups.

Target:

Meant for all quality conscious individuals of all age groups and class.

Positioning:

1. Can be used both indoor & outdoor

2. for all seasons
3. Long lasting
4. Affordable
5. Women‘s slippers are positioned as trendy while men’s are positioned as good
looking.

Dr. Scholl’s Foot care (For both men & women)

These are prescribed by doctors for people having problems in the nerves, diabetics and
related diseases. This product was initially brought on prescription but now people are
buying it out of their own interest and hence have good growth opportunity. Bata has
designed this product in various models giving a better advantage over the local
physiotherapy made standard designs.

Segment:

Health conscious individuals.

Target:

People having disease/ problems requiring medicinal shoes and health conscious foot
wear users.

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Positioning:

Positioned as medicinal foot wear with modern look.

Accessories

To supplement its foot wear business, Bata also sells shoe accessories like socks, lace,
shoe polish etc.,

In order to give a family shopping experience, Bata is also selling leather and related
products like bag, belt and caps. It has plans to sell more such products in the future
through its flagship & city shops.

However no specific segment or target is aimed for these products. These are just to
augment its existing product line and they work as product fillers.

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3. Is the positioning Strategy right?

Bata has positioned itself as a one stop family store for all foot wear and related products.
It is moving out of the image of an age old seller of their manufactured goods. They are
now concentrating on “products that the customer wants rather than products that they
produce”.

Bata India is in a complete revamp process from its earlier image. The company is first in
India to launch flagship stores in Mumbai. They are also intending to make the shopping
experience better to their customers by employing skilled salesperson & creating a better
ambience.

Bata is now using their huge distribution network for selling some other popular brands
like Nike, Rbk and Adidas. This effort not only increases the footfall in Bata stores but
also gives very good margin of 35 to 45 % on each sale.

Bata India is also trying to make Bata a fashion driven company and they are launching
new models every week in big cities. These are efforts to position itself up to the
competition and decreasing market share and loss for three consecutive years till 04-05.
Due to these strategies, Bata reported a profit of 12.96 crore in the year 05-06 which is
high over the Net loss of 60 Crore shown in the year 04-05.

Keeping all these facts in mind, it looks that the company has now taken a serious turn
towards repositioning its brand which is partly successful. However, there are some
loopholes that can be improved. Although Bata has done a lot to revamp the brand, these
efforts are not well communicated. In a bigger level, people’s perception for Bata
remains the same. Bata is doing very less promotional activities. Their promotion is
restricted to seasonal offers in the form of “Sale”, but the advertisement part is missing.
There are rare ads of Bata seen by the customer both in print and media. This result in
very less returns compared to its huge revamp exercise.

Bata as a 75 year old company in India, has a great mind share in Indian’s mind and have
got excellent distribution network. Utilizing both these, the scenario can be completely
changed.Bata is trying to build a single brand “Bata” for the shoes manufactured by them,
so they are eliminating some of their lesser known brands and putting g the brand “Bata”
in all their manufactured products. The retailers inform that the existing brands like
“Ambassador” and “North Star” will also be changed as “Bata” soon.

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Bata’s products are large in volume and variety but still their new models are unable to
impress the customers as they have not redesigning their products as fast as their
competitors.

Finally, two things come out of our research that will help Bata in its repositioning
strategy, they are, Better Communication to the customer and bringing new models.

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