A shoe maker – who comes to your mind bata

A SHOE MAKER – WHO COMES TO YOUR MIND ?

PRESENTED BY –

JINESH C JAIN – 13129

PRANJAL – 13162

MOORCHANA - 13157

SAAD ABDUL WAJID - 13167

SIBY JOSE - 13172

SURYA SIKHA - 13177

OVERVIEW OF INDIAN FOOTWEAR INDUSTRY

• The footwear industry is collection of smaller and segmented market.

• Few large firms dominate the industry, while other players have less than 5% market share.

• International brands dominate the higher end of the market, home grown and unorganised players dominate the lower end of the market.

• The Indian footwear market as the demand for Indian footwear will continue to grow.

ORGANIZED SECTOR VS. UNORGANIZED SECTOR• The average growth in the domestic industry has been estimated at 12%

and is estimated to touch Rs. 47,000 crores by 2025.

• The present size of the domestic footwear market as of Jan 2011 is about Rs. 13,750 crores, out of which the organized segment makes up for 37 per cent.

• Men's footwear requirements are met more by organized sector as compared to women.

BATA INDIA• 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.

• Bata India is the largest company for the Bata Shoe Organization in terms of sales pairs and the second largest in terms of revenues.

• It has more than 1200 stores across the Country.

• First manufacturing facility in Indian shoe industry to ISO : 9001certification.

• Company went public in 1973 and change its name to BATA INDIA limited.

MAJOR COMPETITORS

• LIBERTY - Annual turnover of Rs. 795 corers.

• KHADIMS - Made entry into the market in 1993 with 625 stores

across the country

•WOODLAND - Owned by Aero Group it began its operations in the 1960s and now has an asset base of over Rs. 530 crores.

COMPANIES TARGETING THE CONSUMER BASED ON INCOME PER

ANNUM

PUMA, NIKEADIDAS

ACTION, LIBERTY,NIKE, ADIDAS

BATA, ACTION, LIBERTY,NIKE, ADIDAS, RELAXO

BATA, ACTION, RELAXO

RICH CLASS

UPPER MIDDLE CLASS

LOWER MIDDLE CLASS

LOWER INCOME GROUP

SWOT ANALYSIS

BATA ON THE RAMP

• Company started to rejuvenate its brand ,repositioning themselves as market driven, fashion conscious, lifestyle brand.

• Bata polished its image with 69 stores and renovated 40 of its existing ones.

• The company expanded and added 200 new stores.

• These stores operated in a four-tiered retail format under a new retail model Up-market Flagship Stores, Smart and Trendy City Stores, Super Stores and Traditional Family Stores.

BATA DIRECT

• In 2008, ventured into direct marketing with the

launch of direct distribution channels.

• It offered vast range of stylish and trendy footwear for

men, women and children in its catalogue.

• The consultant would purchase products from Bata

direct at the consultant price and sell it at MRP.

• This channel supplemented 1250 Bata stores and

multi-brand outlets

MAKE OVER

• For its premium products tied up with other retail companies such as Lifestyle.• Decided to introduce four designs every day,

open 70-100 stores of at least 5000 sq. ft. every year and push online sales.• 270 large format stores at prime locations

have been opened.• Online sales are growing at 200 %.

Old Store Layout

New store layout

Layout of BATA Store In India

Has Bata's efforts for makeover failed?

• Bata India reported excellent growth in PBT in third quarter of 2011 at 46.2% growth

rate

QoQ at Rs.4503.3 lac as against Rs.3080.3 lac in the same period last year.

• The net sales of the company grew by 26.8%

• Bata India was selected as the Powerbrand in the Powerbrands 2010 by the Indian

council for Marketing Research.

• Bata reported a growth in net income from operations at 9% growth rate QoQ at

Rs.408.01 Crores as against Rs.453.87 Crores.

ANALYSIS USING 4 P’S IN THE MARKET: 

PRODUCT: Bata sells all the range of footwear from shoes, canvas, belly, leather shoes, sandals, school shoes, flip-flops etc.

PRICE: The price is considered as the most dominant “P” in the product mix. The pricing of Bata has been very nominal and user friendly for the customer which Bata targeted

PLACE: Place and location is the important and prominent in any retail store. Bata has provided as a place where you can find all kinds of footwear at just one stop. In all metro cities Bata is located in all the prime areas of the city and also exists in almost all the cities of India. People look for Bata as a reliable place for their footwear requirements.

PROMOTION: Bata does not promote much by advertising. Bata mainly promotes by providing “sale” in their existing product lines .it also promotes itself by keeping international/premium brands like hush puppies ,Marie Claire etc..

Is Bata right in its efforts to appeal to the “youth and the restless?”

• Overt the years Bata has changed its appeal from a shop that sells Hawai slippers and Canvas Shoes to a shop that flaunts brands like Reebok, Nike and Marie Claire that always has a special charm with young adults and students.

• But, Bata does very little promotional activities. Although Bata has done a lot to revamp the brand, these efforts are not well communicated. 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 electronic media.

Is the brand Bata preferred by the “bold and the bountiful" today? Or still perceived as a brand that sells hawai slippers?

• Gone are the days when people considered Bata as a brand that only sold hawai slippers and canvas shoes.

• Today, Bata caters to the footwear needs of almost every strata of society.• Bata Macho offers a wide variety of footwear options in the Men’s segment.

From Sparx and Power to high end brand like Reebok, Nike and Hush Puppies.• Whereas, Bata Damsel tries to ensure that women who turn to Bata for their

footwear needs are completely satisfied. Apart from their own products, Bata sells brands like Marie Claire and Hush Puppie through their stores.

Is Bata’s pricing strategy fitting well with its brand image and positioning?

Brand valueBata has created unique image in consumer mind as footwear producer. Consumer easily connects Bata as Shoe Company. It has positioned itself as, “one Bata, one world”.

PositioningWe can also see that the positioning of the brand is very well done in minds of all the segments of the country. The segmentation, target customers were very well focused. The sale of Bata is increasing and it is doing well.

Which segment should it focus and why ?

• 14%, includes high disposable income group.

• 50%, includes people middle class and middle class group.

• 36%, lower income class group.