Group 7 ReM Final Assignment
Group 7 ReM Final Assignment
On
Retail mix and retail market strategy
Submitted To
Prof. G.K Murthy
Submitted by:
Group – 7
1. Akash Kumar
2. Md Quadir Iqubal.
3. Ritin Raj
4. Shivangi Kumari
5. Shriyanshu Bhushan
6. Sumit Anand
Contents
1. SELECTING THE RETAILER......................................................................................... 2
2. MILESTONES IN BATA'S JOURNEY SINCE INCEPTION ....................................... 4
3.1 COMPARING THE TWO RETAILERS ........................................................................ 6
3.2 VARIETY AND ASSORTMENT ..................................................................................... 7
4. COMPARE THE TARGET FIRM’S TWO CHANNELS............................................. 10
5. RETAIL MARKET STRATEGY COMPARISON ........................................................ 12
6. FINANCIAL PERFORMANCE COMPARISON: BATA INDIA LTD. VS. METRO
BRANDS LTD........................................................................................................................ 15
7. EVALUATE THE LOCATION OF BATA'S STORE AND COMPARE IT WITH
METRO .................................................................................................................................. 19
8. REFERENCES .................................................................................................................. 22
1
1. Selecting the Retailer
1. Bata (Focal Retailer)/ Speciality Store (49 stores)
Why it fits:
• Operates physical stores and digital platforms (website and app), fulfilling the dual-channel
requirement.
• Known for its variety and assortment in footwear, including formal, casual, and school shoes,
which makes it easy to compare its offerings with competitors.
• Financial data is available as Bata is a publicly traded company, and their store operations are
accessible for observation.
Why it fits:
• Offers a comparable product mix focusing on shoes and accessories, catering to similar target
audiences.
• Known for its focus on premium quality and variety, allowing for a meaningful retail mix and
merchandise comparison.
• Operates both physical stores and an online platform, fulfilling the multi-channel comparison
requirement.
Why it fits:
2
• Focuses on value-driven customers, which contrasts with Bata’s product positioning,
allowing for insightful comparisons of retail strategies and customer experiences.
• Offers a distinct merchandise category (fashion vs. footwear), making the retail mix analysis
more varied.
3
2. Milestones in Bata's Journey Since Inception
Early Beginnings
• 1894: Bata was founded by Tomáš Bata, along with his siblings Anna and Antonín, in Zlín,
Austria-Hungary (now Czech Republic).
• 1897: The company introduced a novel manufacturing process that allowed it to produce
affordable, quality shoes for the working class.
• 1904: Adoption of mechanized production techniques, which led to mass production and
reduced costs.
• 1914-1918: During World War I, Bata supplied military boots, resulting in a significant
increase in production and revenue.
• 1929: Expanded globally, establishing operations in India, Canada, South Africa, and the
United Kingdom.
• 1936: Opened the famous Bata township in Batanagar, Kolkata, which became the first large-
scale shoe manufacturing facility in India.
• 1939-1945: World War II disrupted operations in Europe, but the company sustained itself
through its operations in India and other colonies.
• 1940s: Continued global expansion despite challenges, establishing factories and stores
across Asia, Africa, and Latin America.
4
Mid-20th Century: Consolidation and Innovation
• 1952: Introduced the “Bata Bullets” sneakers in the U.S., marking an entry into the athletic
shoe market.
• 1954: Introduced the iconic “Hawaiian Slippers,” making footwear affordable for millions in
India.
• 1962: Opened the Bata Shoe Museum in Toronto, Canada, showcasing the company’s
heritage and global impact.
• 1970s-1980s: Invested in modernizing its factories and improving supply chain efficiency.
• 1993: Expanded product offerings to include accessories and apparel in select markets.
• 2010: Launched global collections and collaborated with renowned designers for limited
editions.
• 2012: Opened flagship stores in major cities worldwide, embracing a modern retail format.
• 2017: Achieved global recognition by being named one of the most admired companies in the
footwear industry.
Recent Developments
• 2020: Adapted to the COVID-19 pandemic by enhancing its e-commerce platform and
introducing home delivery services.
• 2022: Launched new sustainable footwear lines, emphasizing eco-friendly materials and
practices.
• 2023: Expanded digital operations, integrating augmented reality (AR) for virtual shoe
fittings.
5
3.1 Comparing the two retailers
Components of
Bata (Focal Retailer) Zudio (Indirect Competitor)
Retail Mix
Moderate assistance, mainly focused Self-service model, where
on shoe fitting and product inquiries. customers browse and select
Customer
Store staff help customers find the right products independently.
Service
shoe size and offer product Minimal staff intervention, mainly
recommendations. assisting at checkout.
Present in malls, high-street shopping Found in malls and densely
areas, and standalone stores. populated urban areas.
Location
Located in high-footfall areas to attract Growing presence in tier-2 and
professionals, families, and students. tier-3 cities.
Specializes in footwear, Focuses on apparel, with limited
including formal, casual, sports, and footwear options like casual shoes
Merchandise
kids' shoes. and flip-flops.
Assortment
Offers a mix of international and in- Offers trendy clothing and
house brands. accessories for the youth market.
Mid-range pricing, balancing cost and Low-cost, budget-friendly
quality. pricing for mass-market appeal.
Pricing
Frequent discounts and seasonal sales. Minimal discounts, as prices are
already set low.
Uses TV commercials, digital media, Heavy focus on social media
and print advertising. marketing and influencer
Communication Engages in in-store promotions and collaborations.
festive sales. Uses Instagram, Facebook, and
YouTube for promotions.
Simple and functional layout, Trendy, vibrant interiors designed
prioritizing easy navigation. to appeal to young shoppers.
Store Design &
Less emphasis on visual merchandising. Uses stylish mannequins and bold
Display
displays for an engaging shopping
experience.
6
• Bata focuses on quality, durability, and a mid-range pricing strategy, appealing to working
professionals and families.
• Zudio is a fast-fashion, budget-friendly brand targeting trendy, price-conscious
youth with digital-heavy marketing.
• While Bata excels in footwear variety and brand legacy, Zudio thrives on trend-driven
products, low pricing, and youth appeal.
Aspect Details
Product Length (Categories)
Formal Shoes Office wear, leather shoes, business casual shoes.
Casual Shoes Sneakers, loafers, slip-ons, flip-flops.
Sports & Athleisure Running shoes, walking shoes, gym shoes.
Sandals & Slippers Open-toe sandals, slip-ons, comfort wear.
Kids' Footwear School shoes, casual shoes, sandals.
Accessories Socks, shoe polish, bags, insoles, laces.
Product Breadth (Types within Categories)
Formal Shoes 3 types (Oxford, Derby, Loafers).
Casual Shoes 4 types (Sneakers, Loafers, Slip-ons, Flip-flops).
Sports & Athleisure 3 types (Running shoes, Gym shoes, Walking shoes).
Sandals & Slippers 2 types (Comfort sandals, Flip-flops).
Kids' Footwear 2 types (School shoes, Sandals).
Accessories 3 types (Socks, Shoe polish, Bags).
Product Depth (Variants/SKUs per Type)
Formal Shoes 25-30 models.
Casual Shoes 20-25 models.
Sports & Athleisure 15-20 models.
Sandals & Slippers 10-15 models.
Kids' Footwear 10-12 models.
Accessories 8-10 models.
7
Average Number of SKUs for Accessories in Bata:
Accessory Type SKUs
Socks 20 SKUs
Shoe Polish 15 SKUs
Bags 10 SKUs
Insoles 12 SKUs
Laces 8 SKUs
Key Observations:
• Bata's assortment depth is strongest in formal and casual shoes, with significant variety in
styles and materials.
• Accessories have a lower SKU count, indicating they are a secondary product category.
• Bata’s product mix is focused entirely on footwear and related accessories.
• Bata maintains a deep inventory in key categories like formal and casual shoes, ensuring
customers have multiple style and size options.
For Zudio:
Aspect Details
Product Length (Categories)
Men’s Apparel Casual wear, formal wear, ethnic wear, sportswear
Women’s Apparel Casual wear, formal wear, ethnic wear, activewear
Kids’ Apparel Boys’ and girls’ clothing across casual, ethnic, and seasonal
categories
Accessories Bags, belts, socks, caps, scarves
Footwear Casual shoes, sandals, flip-flops
Seasonal Collections Winter wear (jackets, hoodies, sweaters), summer casuals
(shorts, dresses)
8
Product Breadth (Types within Categories)
Men’s Apparel 4 types (t-shirts, jeans, ethnic kurta sets, shorts)
Women’s Apparel 5 types (tops, dresses, leggings, kurtis, sportswear)
Kids’ Apparel 3 types (casual t-shirts, shorts, ethnic wear)
Accessories 4 types (bags, socks, belts, caps)
Footwear 3 types (casual sneakers, flip-flops, sandals)
Product Depth (Variants/SKUs per Type)
Men’s T-Shirts 30-40 models
Women’s Dresses 25-35 models
Kids’ Casual Wear 20-30 models
Bags 10-15 models
Footwear (Flip-Flops & Sandals) 15-20 models
9
4. Compare the target firm’s two channels
10
In-store exchanges possible if the Hassle-free returns and refund
Returns &
customer retains the bill. policies; customers can return within a
Exchanges
Returns depend on store policy. set period (e.g., 7–15 days).
Multiple delivery options: Home
Delivery & No delivery service; customers take delivery, Express Delivery (if
Pickup Options their purchase immediately. available), and Click & Collect (store
pickup).
Customer support via live chat, email,
Face-to-face customer service; staff
Customer or phone.
assist in finding sizes,
Support Chatbots help with FAQs, and real-time
recommendations, and fitting.
assistance is available.
Loyalty Physical loyalty programs and Digital loyalty program; points and
Programs & membership benefits available in- offers are directly credited to the online
Offers store. account.
• Merchandise & Pricing: The online store offers a larger variety of products, including
exclusive collections and discounts, while the physical store is limited by inventory space.
• Shopping Experience: The physical store provides personal assistance, making it ideal for
customers who prefer trying products before purchasing, whereas the website/app offers
convenience and easy filtering.
• Checkout & Payments: Online shopping is quicker and more seamless, while in-store
purchases require standing in queues but allow for instant gratification.
• Returns & Customer Support: The online store provides an easier return process,
whereas physical stores handle exchanges more efficiently for immediate replacements.
• Delivery & Accessibility: The online store offers home delivery and store pickup, making
it more flexible, while in-store shopping requires a physical visit.
11
5. Retail Market Strategy Comparison
1. Retail Format
Key Difference:
Bata follows a specialized footwear-focused model with strong omnichannel integration, while
Zudio operates a value-driven apparel model, emphasizing affordability and high-volume sales.
12
2. Target Market
Key Difference:
Bata caters to quality-conscious customers who seek durable and branded footwear, whereas Zudio
appeals to trendy, price-sensitive shoppers looking for frequent fashion updates.
3. Positioning
Key Difference:
13
4. Sources of Sustainable Competitive Advantage
Key Difference:
Bata’s competitive advantage lies in its heritage, strong brand trust, and deep footwear
assortment, whereas Zudio thrives on fast fashion, affordability, and high footfall locations.
Final Takeaways:
• Bata = Quality, Comfort, and Brand Trust (Best for long-term wear, brand-conscious
consumers).
• Zudio = Trendy, Budget-Friendly, Fast Fashion (Best for impulse shoppers and young adults).
• Both brands serve different consumer needs and have strong retail strategies tailored to their
market segments.
14
6. Financial Performance Comparison: Bata India Ltd. vs. Metro
Brands Ltd.
1. Net Profit Margin and Associated Metrics
This ratio measures profitability by showing the percentage of revenue that remains as profit after all
expenses are deducted. It reflects overall efficiency in controlling costs and generating profit.
This ratio evaluates a company’s efficiency in using its assets to generate revenue. It indicates how
effectively the resources are utilized to produce sales. Higher ratios signify better operational
performance.
ROA measures a company’s efficiency in converting assets into net income. It reflects both
profitability and asset utilization, helping assess the effectiveness of asset investments in driving
profitability.
15
Comparison of Financial Performance: Bata India vs. Metro Brands (FY23)
Bata India and Metro Brands operate in the footwear retail segment but have distinct operational
and financial characteristics. While Bata India focuses on a broad customer base with a mix of
premium and value products, Metro Brands targets the mid-to-premium market segment with a
curated product offering.
• Metro Brands benefits from higher pricing power and operational efficiency,
likely due to a focused premium product mix and strategic cost management.
• Bata India's lower margin reflects its broader product range and possibly higher
operational costs associated with its larger distribution network.
• Bata India's Asset Turnover Ratio is 1.04, outperforming Metro Brands' 0.70,
suggesting Bata generates more revenue per rupee of assets.
• This highlights Bata’s ability to effectively manage its inventory and retail
operations across a more extensive footprint.
• Metro Brands' lower ratio may result from its focus on premium products, which
could have lower turnover rates.
16
Differences in Financial Performance
• Metro Brands (18.12%) has a significantly higher net profit margin than Bata
India (7.47%).
• This indicates Metro Brands achieves better cost efficiency and pricing strategies.
• Bata India's lower margin suggests higher operational or distribution costs relative
to its revenue.
• Bata India (1.04) has a higher Asset Turnover Ratio than Metro Brands (0.70).
• This reflects Bata’s ability to generate higher revenue from its asset base due to a
wider reach and product mix.
• Metro Brands’ lower ratio could result from a slower-moving inventory mix in the
premium segment.
• Metro Brands’ focused strategy and cost management contribute to its higher
returns.
• Bata’s ROA is lower, influenced by its broader scale and asset base.
Key Inferences
• Higher Net Profit Margin (18.12% vs. 7.47%) indicates Metro earns more
profit per unit of revenue.
17
2. Bata India is More Effective in Generating Sales from Assets
• Higher Asset Turnover Ratio (1.04 vs. 0.70) suggests Bata utilizes its assets
better to drive revenue.
• This advantage stems from Bata’s extensive network and broader customer base.
3. Metro Brands Delivers Higher Returns on Investment
• Higher ROA (12.70% vs. 7.78%) reflects Metro’s superior ability to convert
assets into profits.
• This is attributed to Metro’s strategic focus on high-margin segments.
4. Business Model Differences Influence Financial Performance
• Bata India operates a large-scale, high-revenue model with a diverse product
offering and wider customer base.
• Metro Brands follows a niche strategy, prioritizing higher margins and premium
products, which enhances profitability but limits scale.
5. Growth vs. Efficiency Trade-Off
• Bata India’s extensive operations enable higher revenue generation but come with
higher costs.
• Metro Brands’ profitability focus is sustainable in its current model but could face
challenges with aggressive expansion.
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7. Evaluate the Location of Bata's Store and Compare it with Metro
1. Type of Location
Both Bata and Zudio have stores in Boring Road, Patna, a prime commercial area known for its
retail, fashion, and lifestyle shopping. Based on the classification:
o The area includes a mix of national and local retailers, restaurants, and service
providers, attracting a wide range of shoppers.
2. Site Characteristics
• High Footfall: Being a prime shopping destination, Boring Road witnesses a high volume of
daily shoppers, including college students, working professionals, and families.
• Retail Mix: The presence of multiple fashion stores, footwear retailers, electronics shops,
and food outlets, making it a competitive retail hub.
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3. Comparison of Locations: Bata vs. Zudio (Boring Road, Patna)
Site Accessibility High (Located on the main road High (Located in a commercial hub
with strong brand visibility). with youth-centric stores).
Customer Flow Moderate to high (customers visit Very high (fast-moving fashion,
with planned purchases for footwear impulse buying behavior).
needs).
Similarities:
• Both stores are located in Boring Road, benefiting from high footfall and strong retail
demand.
• Both fall under unplanned retail locations in a Secondary Business District, making them
easily accessible to a large number of shoppers.
• Both stores have recognizable brand presence, attracting a loyal customer base.
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Differences:
• Zudio is a value fashion retailer, selling affordable apparel and accessories, relying on
fast fashion and impulse buying.
• Zudio benefits from high customer turnover, as customers visit frequently for new fashion
arrivals, whereas Bata serves long-term needs, with customers purchasing footwear less
frequently but with brand loyalty.
Final Insight:
Both Bata and Zudio benefit from their prime location in Boring Road, but their retail strategies
differ—Bata focuses on durability and comfort in footwear, while Zudio leverages affordable
fashion and frequent customer visits to drive sales.
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8. References
1. Bata India. (n.d.). Official website. Retrieved January 26, 2025, from https://www.bata.in
2. Metro Brands. (n.d.). Official website. Retrieved January 26, 2025, from
https://www.metrobrands.com
3. Zudio. (n.d.). Official website. Retrieved January 26, 2025, from https://www.zudio.com
4. Moneycontrol. (n.d.). Bata India financial results. Retrieved January 26, 2025, from
https://www.moneycontrol.com/financials/bataindia
5. Moneycontrol. (n.d.). Metro Brands financial results. Retrieved January 26, 2025, from
https://www.moneycontrol.com/financials/metrobrands
6. India Brand Equity Foundation (IBEF). (2023). Retail industry in India. Retrieved January 26,
2025, from https://www.ibef.org/industry/retail-india.aspx
7. Tata Group. (n.d.). Tata in the retail sector. Retrieved January 26, 2025, from
https://www.tata.com/business/zudio
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Group 7 ReM Final Assignment .pdf
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