PROJECT REPORT

TITLED
Evaluation of marketing
Evaluation of marketing
strategies & assessment of
strategies & assessment of
consumer preferences of Bata
consumer preferences of Bata
India Ltd.
India Ltd.
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR
MASTER OF BUSINESS ADMINISTRATION
ACKNOWLEDGEMENT
Project work is never the accomplishment of an individual. Rather, it is an
amalgamation of the eforts, ideas and co-operation of a number of
entities. The compilation and presentation of this opuscule has bestowed
me with an opportunity to show my gratitude to those subservient to it.
I am highly indebted to my guide Mr. H S Parmar who has been the
hallmark of this efort. His guidelines made me comprehend the
enigmatical portion of the subject and were the sole animating force that
coerced me to meliorate my eforts without the support and guidance the
project report would not have taken shape.
INDIAN FOOTWEAR INDUSTRY
With a large population close 1000 mn; India has a large shoe demand.
The total size of the market is estimated at 800 mn pairs, which
represents less than a pair per capita. While a large number of people
buy two to fve pairs, some even ten pairs, there is a large number of who
buys even more. With only one more pair per capita, the demand will
expand by a staggering 1000mn pairs. This is a norm, which is not hard
to conceive. The per capita demand is expected to increase to 1.5 pairs by
2002 and 2.5 by 2007. The price range is so dispersed that a
predominant majority can buy an additional pair a year. In fact, the life
cycle of many pairs is not as long as one year.
Until recently, a major part of the demand was met by the unorganized,
informal, small sector. Branded shoes account for only less than 20% of
the entire market. Less than 1% of the shoes sell at prices exceeding Rs
500 per pair.
The industry had witnessed major problems regarding raw material
costs, funds availability, declining capacity utilization and increasing
global competition. Capacity utilization, a major indicator of the
economic health of the industry, was low at 60%.
The two Supreme Court Orders in September 1995 and April 1996
forcing closure of 459 leather tanneries in Tamil Nadu gave a jolt to the
leather industry in the State. Leather is one of the States prime
industries contributing 60% of the countrys leather production and
providing 250000 jobs in 914 tanneries.
Shoes have diverse segmentation:
1.) By material of construction:
There are:
a) Leather
b) Rubber
c) PVC
d) Canvas
e) Multi product shoes
2.) By consumers variation:
There are:
a) Mens
b) Womens,
c) Boys
d) Girls
e) Baby shoes
3.) By usage pattern:
There are:
a) Formal shoes
b) Casual and informal shoes
c) Slippers for in house use
d) Military shoes and
e) Sports shoes
4.) By types of shoes:
There are:
a) Military or police boots
b) Formal dress closed and pumps
shoes
c) Sandals
d) Hawai chappals and
e) Slippers
5.) By price range:
a)High end over Rs1000 per pair going
beyond Rs2500 per pair
b)Medium priced shoes between Rs250 to Rs.
1000 per pair.
c)Low priced shoes below Rs250 per
pair.
d)Plastic chappals or leather strapped rubber
sole chappals could be priced as low as Rs 20
a pair.
e)Womens footwear sector is a fancy segment
served both by local producers and foreign
suppliers.
The industry is segmented widely:
a)Large Indian producers
b)Multinationals producing in India or
exporting from abroad
f)Small scale semi-organized sector
g)Cottage industry.
Only the frst two segments produce branded shoes.
MNCS IN FOOTWEAR INDUSTRY
In their category of a million shoe markets, the three major MNCs players
are Reebok, Adidas and Nike. Of this, one half goes to Reebok and the
other half is equally shared between Adidas and Nike. The share of
foreign brands in India with prices over Rs. 1,000 per pair is less than
5% of the branded market or less than 1% of the total market. The
foreign brands include Reebok, Nike, Adidas and Puma in sports;
Florsheim, Clarks and Lotus in formal; and Lumberjack, Lee Cooper and
sketchers in casuals.
The global player, Reebok India, incorporated in 1985, is a 80:20 joint
venture between Reebok International of the US and Phoenix Overseas. It
has now received the approval from the government to increase its stake
from 80% to 95%. Reebok has sales of $ 3.50 bn and operations in over
40 countries worldwide. Reebok is introducing performance shoes which
customized for diferent sports like cricket, basketball, football, walking,
jogging and other sports. The international shoe majors had created a
new interest for sports shoes in India. However the prices of the Reebok
Brand are far beyond the pocket of most Indian consumers.
The Indian companies had priced sports shoes lower in the range of Rs
450 to Rs 1000. Only a few models are priced higher than Rs 2000.due
to the interest created, the Indian brands, Liberty, Phoenix and Action,
had expanded their sales in this category. Action, with divergent
strategies, had sold large volumes. They spread their products in
diferent price segments, but at a much lower price than those of global
brands.
Of the sports shoes, 80% had imported components, which attracted an
average duty of 50% (with some components attracting 72%).
Adidas also had a manufacturing contract with Lakhani. Nikes licensee
in India is Sierra Industrial Enterprises, which had given the brands
manufacturing contract to Moja Shoes. Nike is also selling through select
Bata showrooms and a few departmental stores. Adidas has entered into
a retail tie-up with Phoenix. Liberty shoes, a leading Indian player has a
turnover of Rs. 2250 mn. Phoenix had a turnover of Rs. 3800mn a year.
DEMAND: PAST & FUTURE
Year MN Pairs
1990-91 360
1991-92 400
1992-93 435
1993-94 475
1994-95 525
1995-96 550
1996-97 605
1997-98 665
1998-99 730
1999-00 805
2000-01 890
2001-02 1000
2006-07 1570
LEAD PLAYERS
Company Share (%)
Leather Other
Bata India 24 52
Liberty 36 22
Carona 1 3
Metro shoes
Drish shoes
Unico Leather
Performance shoes
Reebok India
Adidas ) 45
Nike )
Aero group,Mescos, )
Wasan,Lotus,Bawa, ) 55
Lumberjack,Lakhani )
9.0%
10.6%
9.4%
5.2%
0 0.05 0.1 0.15
Rate of Growth
1990-91 -
1996-97
1996-97 -
2001-02
2001-02 -
2006-07
Sensitivity
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Series1
Series2
MARKET STRUCTURE
Market Segmentation
Segment Share (%)
Organized 20
Informal 80
Market Structure
20%
80%
Organised
Infomal
PRODUCT VARIATION
Type Share (%)
Casuals 46
Sports 42
Formals 8
Performance 4
Below Rs 500/pair 68
Rs 500 to Rs 1000 29
Above Rs 1000 3
Leather 10
Rubber/PVC 21
Canvas 69
Product Varato!
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LITERATURE REVIEW
Marketing organization
Over the years marketing has grown from a simple sales
department into a complex group of activities. We will examine
how marketing departments have evolved in companies how they
are organized and how they interact with other company
departments.
The evolution of the marketing department
Marketing departments have evolved through six stages simple
sales department sales department with marketing function
separate marketing department modern marketing department
efective marketing company process and outcome based company.
Customer focus
In India, marketing as a discipline has evolved at a leisurely pace,
dictated of course by circumstantial factors. Most market being
sellers markets (i.e., where seller dominates over the customer)
until recently marketing philosophy was an alien concept for an
India seller. In a broad sense all markets can be divided into two
categories: sellers market and buyers market. A buyers market is
one where due to prevailing intense competition among the sellers
and consequent excess of supply over existing demand the buyer
rules over the seller. On the other hand in a sellers market
competition is restricted for any number of reasons. For example
domestic air transportation was sellers market till only Indian
airlines was operating. Now it is a buyers market.
Neil Borden summed them up as marketing mix. Then the
prevailing thinking was that it involved a blend of selling
distribution advertising and related skills in the right proportion
to suit the market its time and place. After marketing got
separated from the notion of selling the former now manufacturing
and post manufacturing (transportation ware housing
promotional) costs plus the targeted level of proft margin. Actual
price fxing of course depends on the function features of the
product and image of the brand. Then there is the degree of the
competition that dictates the prices of a brand vis--vis its
competing brands.
Price can also act as communication tool. For example price
package may give the message of afordability.
We also acquire needs after we are born. These needs are shaped
by the environment and the culture in which we live by our
education and by our experiences. The interesting thing about
acquired needs is that there are usually many people who
experience the same needs. This commonality of needs or interest
constitutes a market segment enabling the marketer to design
specifc product and/ or promotional appeals to satisfy the needs
of that segment. Market segmentation also enables the marketer to
very the image of its product so that each market segment
perceives the product as better fulflling its specifc needs than
competitive products.
One of the most important constants among all of us despite our
diferences is that above all we are consumers. We use or consume
on a regular basis foods clothing shelter transportation education
equipment vacations necessities luxuries services even ideas. As
consumers we play a vital role in the health of the economy local
national and international. The purchase decisions we make afect
the demand for basic raw materials for transportation for
production for banking they afect the employment of workers and
the development of resources the success of some industries and
the failure of others. There is no question that consumer behavior
has become an integral factor in the ebb and fow of all business
in a bustling world economy.
The term consumer often is used to describe two diferent kinds of
consuming entities the personal consumer and the organizational
consumer. The personal consumer buys goods and services for his
or her own use (e.g., an electronic notebook) for the use of the
household (a VCR) or as a gift for a friend (a videogame) in each of
these context the products are bought for fnal use by individual
who are referred to as end users or ultimate consumers. The
second category of consumer the organizational consumer
includes proft and not for proft business government agencies
(local state and national) and institution (e.g., school hospitals
and prisons) all of which must buy product equipment, and
services in order to run their organizations.
Forecasting and demand measurement
One major reason for undertaking marketing research is to
identify market opportunities. Once the research is complete the
company must measure and forecast the size growth and proft
potential of each market opportunity. Sales forecasts are used by
fnance to raise the needed cash for investment and operations; by
the manufacturing department to establish capacity and output
levels by purchasing to acquire the right amount of supplies and
by human resources to hire the needed number of workers.
Marketing is responsible for preparing the sales forecasts. If its
forecast is far of the mark the company will be saddled with
excess inventory or have inadequate inventory. Sales forecasts are
based on estimates of demand. Managers need to defne what they
mean by market demand.
Company sales forecast
Once marketers have estimated company demand their next task
is to choose a level of marketing efort. The chosen level will
produce an expected level of sales. The company sales forecast is
the expected level of company sales based on a chosen marketing
plan and an assumed marketing environment.
The company sales forecast is represented graphically with
company sales on the vertical axis and company marketing efort
on the horizontal axis as in. too often the sequential relationship
between the company forecast and the company marketing plan is
confused. One frequently hears that the company should develop
its marketing plan on the basis of its sales forecast. This forecast
to plan sequence is valid if forecast means an estimate of national
economic activity or if company demand is non expansible. The
sequence is not valid however where market demand is expansible
or where forecast means an estimate of company sales. The
company sales forecast does not establish a basis for deciding
what to spend on marketing. On the contrary the sales forecast is
the result of an assumed marketing expenditure plan.
A product mix (or product assortment) is the set of all products
and items that a particular seller ofers for sales to buyers.
Product classifcations
Marketers have traditionally classifed products on the basis of
characteristics durability tangibility and use (consumer or
industrial). Each product type has an appropriate marketing mix
strategy.
Durability and tangibility
Products can be classifed into three groups according to
durability and tangibility:
1.Nondurable good are tangible goods normally consumed in one
or a few uses like beer and soap. Because these goods are
consumed quickly and purchased frequently the appropriate
strategy is to make them available in many locations charge
only a small markup and advertising heavily to induce trial
and build preference.
2.Durable goods are tangible goods that normally survive many
uses refrigerators machine tools and clothing. Durable
products normally require more personal selling and service
command a higher margin and require more seller guarantees.
3.Services are intangible inseparable, variable and perishable
products. As a result they normally require more quality
control supplier credibility and adaptability. Examples include
haircuts and repairs.
Sales promotion:
Sales promotion tools coupons contests premiums and the like
ofer three distinctive benefts:
1.Communication: They gain attention and may lead the
consumer to the product.
2.Incentive: They incorporate some concession inducement or
contribution that gives value to the consumer.
3.Invitation: They include a distinct invitation to engage in the
transaction now.
Companies use sales promotion tools to draw a stronger and
quicker buyer response. Sales promotion can be used for short
run efect such as to dramatize product ofers and boost sagging
sales.
Consumer Behavior:
The term consumer behavior refers to the behavior that consumer
display in searching for, purchasing, using, evaluating and disposing of
products and services that they expect will satisfy their needs. The study
of consumer behavior is study of how individuals make decisions to
spend their available resources (time, money, efort) on consumption
related items. It includes the study of what they buy, why they buy it,
when they buy it, where they buy it, how often they buy it, and how often
they use it. Take the simple product toothpaste. What types of toothpaste
do consumers buy (gel, regular, striped, in a tube, with a pump) ; what
brand (national brand, private band, generic) ; why do they buy it (to
prevent cavities, to remove stains, to whiten teeth, as a mouthwash, to
attract romance); where do they buy it (supermarket, drugstore,
convenience store); how often do they use it(when they wake up, after
each meal, when they go to bed, or any combination thereof); how often
do they buy it (weekly, biweekly, monthly)?
CB : A SYNTHETIC FIELD OF STUDY
---------------------------------------------------
SOCIAL
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SITUATION

BATA INDIA LIMITED
Bata India Limited is India's largest manufacturer and marketer of
footwear products. Bata India sells over 60 million pairs per year
throughout India and in overseas markets such as USA, UK, Europe,
Middle East and Far East.
Bata India is part of the global Bata Shoe Organization based in
Toronto, Canada. Incorporated as Bata Shoe Company Private Limited in
1931, the company went public in 1973 when it changed its name to
Bata India Ltd.
Its frst factory was set up in Konnagar in 1931 which was then
shifted to Batanagar.
At its fve factories - Batanagar, West Bengal (1936);
Bataganj, Bihar (1942); Faridabad, Haryana (1951);
Peenya, Karnataka (1988); Hosur, Tamil Nadu (1994) - the Company
manufactures quality leather, rubber, canvas and PVC shoes in wide-
ranging designs and styles at afordable prices.
Bata India has two tanneries - one at Batanagar and the other at
Mokamehghat in Bihar (1952). The latter is the second largest in
Asia.
Batanagar factory is the frst Indian shoe manufacturing unit to
receive the ISO 9001 certifcation in 1993.
Bata frst 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.
Operations were expanded throughout India with the establishment of
factories in diferent 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.
Starting operations as a private company, Bata India is today traded
on the Kolkata and Mumbai Stock Exchanges
Bata History
The business that became the Bata Shoe Organization
was established on August 24, 1894 in Zlin,
Czechoslovakia by Tomas Bata, and included his brother
Antonin and sister Anna. Although this business was
new, the Bata name had been part of a tradition of
shoemaking for eight generations, spanning three
hundred years.
It was one of the frst modern-day shoe 'manufacturers', a team of
stitchers and shoemakers creating footwear not just for the local town,
but also for distant retail merchants. This departure
from the centuries-old tradition of the one-man cobbler's
workshop was a brand new concept, creating an entirely
new industry.
The Bata enterprise revolutionized the treatment of
employees and labour conditions. Tomas consistently
maintained a human focus, creating opportunities for
development and advancement, and added compensation for employees
based on achievement.
In late 1895, Antonin was drafted into the army
for compulsory military service and left the
family shoe business. Also that year, Anna left
the company to marry, leaving a young Tomas to
build the business on his own.
By 1905 Tomas had taken the new enterprise to 2,200 pairs of shoes per
day, produced by 250 employees - utilizing resourceful imaginations,
skilled hands and modern machinery to keep up with demand. Under
this 'manufacturing' system, productivity was greater
than ever before.
Bata shoes were excellent quality and available in
more styles than had been ofered before. Demand
grew rapidly in the early 1900s. Despite material and
manpower shortages, cartels and the outbreak of World
War I, sales continued to increase, reaching two million pairs per year by
1917.
As the enterprise prospered, so did the communities where it operated.
Tomas believed that a focus on people and public service was critical for
business success. The enterprise built housing, schools and a hospital
near the shoemaking plant in Zlin. It provided food and inexpensive rent
during very difcult times, when there was no other help to be found.
Bata companies later provided rail services, construction, insurance,
publishing and a tannery in Zlin.
Following World War I, consumer purchasing power was very low. Tomas
and his employees devised a plan to adjust to post-war economic
difculties and reduced their shoe prices. Bata stores were fooded with
buyers, and industry cynics were forced to follow their lead.
Already exporting to other European countries, Northern Africa and the
USA, the enterprise began establishing new sales organizations in these
markets during the 1920s. Companies were opened in Poland,
Yugoslavia, Holland, Denmark, the United Kingdom and the USA. By the
early 1930s, the Bata enterprise and Czechoslovakia were the world's
leading footwear exporters.
"The Bata System" devised by the Zlin team, and later applied in other
Bata Shoe Organization companies, organized operations into
autonomous workshops and departments ("proft centres"), allowing
employees to contribute ideas and stimulate production, and contributed
signifcant breakthroughs in footwear technology.
A great proponent of modern technology, Tomas Bata was likely one of
the frst industrialists to travel by private airplane. Tragically in 1932,
poor weather on takeof near Zlin forced his airplane down and Tomas
died in this plane accident.
By this time, new companies had been established in France, Austria,
Romania, Sweden, Switzerland, Egypt, Belgium, Finland, Luxembourg,
Hungary, Italy, Indonesia and Singapore, and by 1938, the Bata Shoe
Organization had established a unique and widespread presence,
designing, producing and marketing footwear in more than 30 countries.
Thomas J. Bata, son of founder Tomas, had from an early age been active
in the Bata Shoe Organization companies. He had already served in
several leadership positions and would soon spearhead the
establishment of the Canadian company. Thomas J. Bata was CEO of
Bata Limited for over 40 years.
The Bata Shoe Organization regarded itself as a 'multi-domestic' rather
than multinational enterprise, making it a priority to contribute to the
economy in any new markets it entered. Production facilities were
frequently added to sales organizations, beginning with Mhlin,
Switzerland and Calcutta, India. Many other shoemaking plants followed,
at a rate of about two per year, until the 1960s.
During the 50s, 60s and 70s the Organization redoubled its focus on
retailing excellence, international footwear branding, advanced
manufacturing techniques and extensive employee training, another Bata
tradition that dated back to the Organization's
earliest years. The Organization continued to
expand its retail operations, production facilities
and moved into new countries of operation.
Thomas J. Bata, and son Thomas G. Bata,
continued to lead the Organization with the
traditional philosophy ensuring that each operation focused on customer
satisfaction. The father and son team began redefning the Organization,
as the world manufacturing base for footwear shifted to developing
countries. New business strategies have been guided by the founding
principles of focussing on customers, marketing and employees. Branded
products, innovative retail store concepts, lifestyle merchandising, non-
footwear products and participative retailing have been introduced.
In 1992, the Organization and family were invited to return to the Czech
Republic, where Bata had remained a symbol of national pride and
achievement.
Today the Bata family continues to be involved in the organization, with
Thomas G. Bata, grandson of the founder as Chairman.
Manufacturing Excellence
Bata is one of the worlds leading integrated manufacturers and
marketers of footwear, with a network of almost 60 shoe production
facilities, tanneries and engineering workshops in 30 countries. Bata
companies produce almost 150 million pairs of shoes and over 30 million
square feet of leather every year. Many Bata manufacturing operations
have received ISO certifcation.
About half of this output is destined for sale through company-owned
retail stores, and the balance is manufactured to the specifcations of
wholesale customers or under contract to other footwear brands.
100 years of leadership
Bata has been manufacturing footwear for over 100 years. Bata
personnel made key advances in several footwear production techniques
in use today, including the Direct Vulcanization Process (DVP) and slush-
moulding. Bata inventors also patented the original process that adhered
PVC outsoles to textile uppers.
During the 1990s additional patents have been awarded, including one
for the frst removable heel cartridge system for athletic performance
footwear.
Many Bata manufacturing facilities have passed stringent ISO 9000
certifcation, with others presently in the certifcation process.
Good neighbours
Every Bata manufacturing facility is subject to organization-wide
guidelines covering quality control, and health and safety standards. In
addition, Bata companies purchase some 100 million pairs of shoes from
other manufacturers for sale through their retail networks. Preference is
often given to local suppliers for these products. Many Bata companies
have a long standing tradition of assistance to local suppliers capable of
meeting their standards, and have had the satisfaction over the years of
helping many local entrepreneurs.
When capability or pricing requirements cannot be met locally, and trade
regulations permit the cost-efective importation of goods, Bata
companies search out the best foreign sources of supply.
Associated Business Units
Batas policy of good corporate citizenship means that Bata companies
desire to have a positive economic and local impact on the communities
where they operate. There is long standing tradition of working closely
with locally owned and managed suppliers, and providing them with
technical and other help to achieve international quality and operational
standards.
Exports:
BIL (Bata India Limited) exports around 3 million pairs of shoes and
other footwear annually, primarily to Western Europe, Middle-East and
Far-East markets. Majority of the export is Canvas shoes under leading
private labels to customers in the United Kingdom and France. Men's
leather shoes are sold to established retailers in Europe, Middle-East
and Far-East.
BIL's most modern leather shoe Factory is located in Hosur (Tamilnadu)
and is geared to make international quality footwear for export. This
Factory is comparable to the best anywhere in the world with high degree
of fexibility and is fully equipped to manufacture Men's, Ladies' and
Children's cemented and Moccasin shoes and other footwear.
Bata means shoes
Bata is one of the worlds widest reaching companies, with operations in
68 diferent countries. Bata companies strive to listen to the customers
in their local markets and clearly identify their footwear needs, and then
to provide products that exceed their customers expectations in terms of
quality, style and value.
Bata operating companies are grouped into four business units based on
similarities in markets and business issues. Each group benefts from
synergies specifc to their requirements, such as product development,
sourcing and marketing support. Each business unit is entrepreneurial
in nature, and can quickly adapt to changes in the marketplace and seize
potential growth opportunities.
Bata International serves customers in much of Asia, the Pacifc and
Africa through its 3,000 stores and many dealers. It is supervised from
Singapore. Bata International operates shoe innovation centers in several
countries as well as 30 factories to serve individual markets.
Bata Europe is based in Paris and operates 500 stores ofering
fashionable footwear. The world-class shoe innovation center just outside
of Venice supplies many of the exclusive lines found in Bata stores
throughout Europe.
Bata Latin America is based in Mexico City. Bata is the leading retailer
of shoes in Latin America and the leading marketer of children's branded
footwear.
Bata Canada is based in Toronto from where 250 stores serve the
Canadian market. Its chain of Athletes Worlds and Nike Shops is the
leading fashion source in Canada for young urban customers.
A few key facts
Founded in Zlin, in what is now the Czech Republic, in 1894 by
Tomas Bata
Retailer, manufacturer and distributor of competitively priced
commercial fashion footwear and accessories
Employs over 50,000 people in retail, manufacturing and
wholesaling operations
Over 4,700 company owned retail stores
Bata companies annually manufacture over 140,000,000 pairs of
shoes in 46 production facilities and over 30 million square feet of
leather in 9 tanneries
Bata companies serve almost 1 million customers each day
Commitment to Service

Tomas Bata believed that if you focused on providing service, that proft
would follow. Focus only on proft, however,
and you would soon lose your customers.
Batas 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 fulfls our service commitments
to both retail and wholesale customers.
In some languages in the world, the word Bata literally means shoes
footwear didnt exist before Bata came to
the market. In some locations, Bata is the
most widely recognized of any consumer
brand. Bata companies merit such
recognition through the ongoing fulfllment of our customers product
and service expectations.
Bata Leadership Points
Bata operates in many diferent economic and cultural
environments around the world, dictating very
diferent types of operations. Although Bata does not
sell the same shoes nor does it have identical stores in
each country, customers will recognize common
elements to the Bata experience everywhere in the world.
These common elements are the Bata Leadership Points.
The best product
Bata companies ofer their customers fresh, fashionable footwear and
accessories, designed specifcally for the needs of the local market. Their
shoes are always well made from quality materials.
The best service
Whether in India or Italy, their sales associates ofer consistently frst-
class service. They are well-trained to ensure a proper ft, and they
pledge customer satisfaction.
The best value and quality
Through the efcient sourcing and distribution of Bata products, they
can control the cost and quality at every step to ensure value to their
customers.
The best locations
Bata stores are modern, attractive and located
conveniently to their customers. Bata companies
utilize innovative promotions and displays to display their products in
attractive manner.

People First
Bata is a truly worldwide entity, whose diversity of ideas, training and
international exchange of expertise have been major assets. Employees of
Bata companies encompass most of the worlds nationalities and many
languages and dialects. It is Bata policy to provide equality of
opportunity without discrimination, to promote on merit and to stimulate
people into thinking beyond their immediate national experience.
Learning does not stop once work begins training programs ensure
continuing education, skills upgrading and development of general
management capabilities. Management teams are often comprised of
individuals who have risen through the ranks of Bata companies, from
every geographic area. Bata recognizes and rewards initiative,
competence and integrity at all levels, regardless of ethnic or cultural
background.
Advancement is linked to a closely monitored educational process.
Placements in diferent operational areas or in diferent countries enable
promising individuals to gather an unusually broad set of experiences.
Additionally, Bata companies invest in their employees through internally
developed local, regional and international training and skills
development programs. These programs promote the free exchange of
knowledge and ideas within the organization, and help to ensure that all
employees share in the Bata goals and principles.

Corporate Responsibility
Bata companies have a tradition of being good
corporate citizens and seek to contribute to the well being of the
countries and communities where they operate.
Ethical and Legal Conduct
Bata companies conduct themselves as positive and contributing
members of any community in which they operate, and seek to provide
employees with a safe and healthy working environment. Bata companies
are committed to ensuring that operations are conducted ethically, and
in compliance with applicable local laws and regulations.
Environment, Health and Safety Policies
The Bata Environmental Mission Statement is: to protect our people,
customers and communities and to protect our natural environment in
order to help sustain human development globally.
In the implementation of this mission, international guidelines have been
developed in the areas of environment, health and safety. The eforts and
achievements of Bata companies have been recognized in many
countries, by both local and international bodies.
The contribution to environmental conservation includes a role in
prevention and education. Bata companies have long standing
relationships with groups that have helped several generations of young
people become more aware of the need for protection of the natural
environment.
BATA RANGE OF PRODUCTS
Bata Brands:
With more than eight renowned brands, which include Hush Puppies,
Marie Claire, Bubble Gummers, Power, they cater to a wide range of
choices all over the country. Hush Puppies are one of the world's most
comfortable shoes designed for both men and women. Marie Claire is for
today's fashion conscious women who love shoes, which match their
colourful and vibrant wardrobe. That's not all. For those who want a
tough shoe that can weather any storm, they have Sandak to suit their
needs. Weinbrenner is simply meant to take you outdoors. With them on
you can be rest assured about their rugged character and durability. Kids
can take their pick from Bubble Gummers. Power is all about
athleticism, for those who love sports and enjoy sporting activities.
Bata Premium Collections
Bata has been delivering hand-crafting quality footwear for well over 100
years. To maintain and build on their heritage of creating high quality,
comfortable and stylish shoes, Bata has created the Bata Premium
Collection of products in their design centre in Italy.
These shoes are available at selected Bata stores in Europe and
elsewhere, and incorporate innovative leading design with the application
of modern technology. They are their signature shoes for both women
and men.
PRODUCT PROFILE
Girls (FITNESS)
Women generally own more pairs of shoes and slippers than men. They
generally buy 3-4 or more pairs of shoes within a year. And as they like
to buy a number a shoes within a year they want the shoes which
provides them comfort, Quality, at a very reasonable price. So seeing the
opportunity Bata launched a new product and named it as Fitness.
Fitness is there in the market from last ffteen years but company
consistently improved it keeping in view the changes, which have taken
place in last ffteen years. In ffteen years, lifestyle of the consumer
changed rapidly. After studying the about Indian market the company
ranges it in between of Rs. 124/- to Rs. 179/-. Teenage girls also
contribute heavily on these kinds of shoes. Almost 96 percent of them
bought their last pair of shoes or slippers in the last 12 months. It is
observed that teenage girls are more fashion-oriented as compare to
ladies.
Boys (POWER)
Large proportions of teenage boys buy Sports Shoes. The choice, in this
category, is between Bata and Phoenix or any local brand. The
competitive categories are leather and sports shoes. If one were to look at
number of pairs owned, there is no major diference between these two
categories: Most category-owners own one pair of leather or sports shoes.
It is there in the Indian market from last ffteen years and company has
regularly improvised their product with the change in fashion, trend,
quality and comforts and from there on company consistently revised the
prices of Power. At present Power is priced between Rs. 599/- to 999/-.
BATA'S BRAND POWER
KIDS (BUBBLE GUMMERS)
Bubble gummer is kids range conceived by bata & bata has regularly
surveyed the small age consumer and customers from last 15 years. The
shoe was designed after identifying the real need or wants of the kids.
So, bata launched bubble gummers which satisfes kids in every aspect
whether take it in terms of comforts and durability. The shoes is available
in number of colours as well as they are designed in a way which looks
funky & trendy so that childrens get attracted towards it and induces
0
10
20
'0
40
50
60
(0
1992 199' 1994 1995 1996 199( 1998
parents to buy that product. The shoes ranges from rs. 99/- to rs 124/-
onwards.
FITNESS
Here, the Company has followed the Maximum Sales Growth
pricing strategy for its ladies collection called Fitness. The
Batas ftness includes ladies slippers which has a wide
variety with diferent features look moisture free, airy,
comfortability and many more. The ftness is ranges from Rs.
124/- to Rs. 179/-. The Company has segments its market
towards lower and middle class. The ftness provides to its
customer an evergreen range of products. The customers
purchase it over the whole year and also the shoes have a
very longer life. Thats why the company adopts this strategy
for pricing strategy of its ladies shoes ftness.
BUBBLE GUMMERS
And know ultimately lets have a look at the pricing strategy
which was adopted by the Company Bata for its Bubble
Gummers. The strategy adopted was Maximum Sales Growth
due to the reason as the growth rate of children is very fast
and the size of their feets changes very frequently. And also
the children are not too much bothered about their shoes
thats why sometime the lost them. So, after going through all
these reasons the company looks to adopt the maximum
sales growth pricing strategy.
RATIONALE BEHIND THE STUDY
Rationale behind the study is as follows:
1.The change in the marketing strategies and consumer preferences
in the competitive footwear market.
2.The marketing strategies evaluated by the management being less
efective as compared to its competitors.
3.The consumer preferences in purchasing footwear other than Bata.
4.The threat of competition increased by penetration of International
marketers in the National Footwear market.
5.The decrease in the companys market share.
To meet the aforesaid challenges it has become necessary to study the
evaluation of Marketing Strategies and Consumer Preferences
assessment.
Objectives of the Study:
1.To evaluate efective marketing strategies for gaining maximum
market share in the competitive footwear market.
2.To assess the consumers approach towards Bata Footwear.
3.To know about the marketing strategies of the competitors and
their efect on the Bata India Footwear.
4.To know about the latest Marketing Strategies adopted by the
company to achieve its desired goals and objectives.
Research methodology:
Both primary and secondary data were used to study the evaluation of
marketing strategies and consumer preferences assessment.
1.Collection of Primary data:
The primary data was collected by conducting a questionnaire method
through mail and interview. A framed questionnaire regarding the topic
chosen was mailed to the selected sample of 60% of retailers and 20% of
the authorized dealers of the company. Also a selected sample of 400
people including consumers, companys executives and non executives
belonging to diferent geographical areas of Himachal Pradesh were
interviewed regarding the topic chosen for the study.
Data thus collected was statistically analysed and on the basis of the
analysis recommendations and suggestions have been given.
2.Collection of Secondary data:
The secondary data regarding marketing strategies and Consumer
Preferences were collected from the companys business record.
Limitations:
The limitation is that the footwear business in Bata India is all across the
country and therefore the data collected from the selected sample of
people from Himachal Pradesh will not be 100 percent correct.
Expected Contribution:
The results from the study will help the organization in evaluating such
business strategies which can make the Bata Footwear more preferable
in the footwear market. The fnding of the study will beneft the overall
structure of the organization.
ANALYSIS
The following is the analysis that is based on the responses flled in by
the consumers in the questionnaire. It is calculated with the help of
frequency tables, bar graph, pi-charts, etc. all close-ended questions
have been included as a part of the analysis and the analysis of the face
to face interaction and the analysis of the close-ended questions form the
base for recommendations.
Number of Respondents: 400
Survey Area: Himachal Pradesh
Income Level (Per Month) of Respondents:
4%
21%
(5%
0%
) 5000
5000 * 10000
10000 * 20000
+20000
Do you use Bata Footwear?
I have only contacted people using Bata Footwear. If they answered no to
this question then that questionnaire was terminated.
100%
0%
Yes
,o
Which other brand of Footwear do you own?
29%
16%
8%
11%
12%
24%
Ree-ok
.cto!
/-ertr#
,ke
.ddas
0thers
9(
'
Yes
,o
Do you perceive any signifcant diferences among diferent brands of
Footwears?
Thus we see this is a high involvement product and the consumers feel
that there are signifcant diferences in brands categorizing Footwear in
the bracket of complex decision making.
Rate in the order of importance the following brands.(on a scale of 1 to 6:
6- Most Popular - 1 - Least popular)
Thus we see according to the consumers the most popular (1
st
) Brand for
Footwear is Bata, 2
nd
most popular brand is Reebok, 3
rd
is Nike, 4
th
is
Liberty, 5
th
is Adidas, 6
th
is Action.
0
1
2
'
4
5
6
1ata Ree-ok .cto! /-ert# ,ke .ddas
Rate in the order of importance the following aspects in the purchase of
Footwear. (1 being most important and 5 being least important)
Cost
Features
Looks/appearance
Brand name
Advertisements
0
0.5
1
1.5
2
2.5
'
'.5
4
4.5
5
2eatures /ooks3a$$era!ce 1ra!d !a4e .d5ertse4e!ts
What was the basis of selection of Footwears?
The pie charts shows that mostly consumers look for all the above
aspects in the purchase of Footwear but cost and features are the most
important basis of selection.
'5%
''%
19%
8%
5%
6ost
2eatures
.d5ertse4e!ts
1ra!d /o#a7t#
0thers
Who infuenced you in the purchase of Footwears?
Family members are the greatest infuences in the purchase of
Footwears. Even sales person have rate role to play. Advertisements also
lead a mark on the consumer mind.
12
'4
12
22
16
4
0
5
10
15
20
25
'0
'5
2
r

e
!
d
s
2
a
4

7
#
M
e
4
-
e
r
s
R
e
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a
t

5
e
s
S
a
7
e
s

$
e
r
s
o
!
.
d
5
e
r
t

s
e
4
e
!
t
.
!
#

o
t
h
e
r
Who made the purchase decisions in the fnal purchase?
1%
4%
90%
4%
1%
Yourse7f
S$ouse
Youse7f 8
S$ouse
6h7dre!
.!# 0ther
Are you satisfed with the products of Bata India Ltd.?
Mostly all consumers are satisfed with product infact somewhat
satisfed. A major percentage of consumers (21% are neither satisfed nor
dissatisfed. Some consumers (7%) are highly are satisfed with the
product. But 16% of consumer are somewhat dissatisfed and 2% are
highly dissatisfed.
(%
16%
2%
54%
21%
9:h7# ;ssatsfed
So4ewhat
;ssatsfed
,ether Satsfed !or
;ssatsfed
So4ewhat Satsfed
9:h7# Satsfed
SWOT ANALYSIS OF BATA
Strengths of Bata India Ltd.
It is an established brand leader for ages.
It is very popular in all the segments of society.
This product caters to the needs of all the age segments.
It has a very strong distribution network all over India.
It has a very strong market for school shoes and ofce shoes.
Weaknesses of Bata India Ltd.
Their designs are very old fashioned.
They are presently loosing their market share in metropolitan cities in
India.
They have no schemes or incentives for dealers.
Their dealer motivation is absolutely nil.
They are advertising very less now a days.
The promotional material given to the dealers and distributors are
very less and not very frequent.
The shoes designs available with them cant be worn by people of
upper class and upper middle class.
Opportunities for Bata India Ltd.
By using the latest technology and give a new look.
They should start catering to the needs of upper class and upper.
They should introduce latest designs and fashions based on trends of
todays market.
They should start advertising more on television and newspapers.
They should have more schemes for dealers and consumers.
They should concentrate more on dealers motivation and change their
perception towards this brand.
Threats
Introduction of new companies in diverse markets.
They are loosing their dealers network because of opportunities from
the other leading shoe companies oferings to the dealers.
They concentrating mostly on the lower and middle class segments.
Expectations of dealers for more schemes from companies to make
maximum sales.
Entry of International designs in the market making other shoe
designs old.
EVALAUTAION OF MARKETING STRATEGIES OF BATA INDIA LTD.
If you were to ask an Indian customer about the best footwear in the
eighties, the name that frst popped in his mind was Bata. But that was
before private Indian and international brands came in. And made the
Canadian shoe maker look fuddy-duddy and worn out, so much that it
was almost kicked out of the market.
Though recognised as a household name in India, a fnancially
beleaguered Bata has managed to capture 24 per cent market share in
the organised footwear market. The company is now looking at a turnover
of Rs.8,400 million by the end of next year.
The company markets international brands like Weinbrenner, Hush
Puppies, Dr Scholls, Reebok, Adidas, and Azaleia. The other most
popular Bata brands include Power, Marie Claire, Bata School Shoes,
Sandak, Bubblegummers, Bata Hawai and Bata Industrial.
The new comers invested in snazzy retail outlets, with great displays and
interiors and also sold products, which were seen to be hip and with it.
But no more. Bata is making a comeback and with a vengeance. With a
range of stores that it promises will help draw in customers like before.
BATA India Ltd the country's largest manufacturer of footwear
products is targeting a 12 per cent jump in turnover at Rs 840 crore in
2005, against estimates of Rs 750 crore for the current year.
The Indian arm of the Toronto-based Bata Shoe Organisation, which is in
the process of restructuring its retail business and refurbishing its 1,600
stores across the country, has spent Rs 12 crore on the exercise besides
investing in technology at its plants in 2004.
The ongoing restructuring exercise involves ways and means to increase
their topline and bottomline growth. Bata India had been a high cost
structure company.
The company had posted a net loss of Rs 26 crore for the year ended
December 31, 2003 on a turnover of Rs 716 crore. The company hopes to
wipe out the accumulated loss by 2006 and is planning to introduce
another round of VRS in 2005 and is expecting around 700-800
employees to opt for the scheme.
Buoyed by the success of the 'Power' brand, which is witnessing an
increase of 15 per cent quarter on quarter, India's largest manufacturer
and marketer of footwear products Bata India Limited launched the new
range in the 'Power' category in December 2004..
The company also introduced, for the frst time, what it calls a
`revolutionary product in the feld of comfort footwear: Reverso.
The launch of the new range is part of their overall strategy to be future
ready and face competition head on. The emphasis is also on presenting
a contemporary and trendy brand image, which translates to both its
product and corporate culture.
As a step towards rejuvenating the Bata brand, the company is
repositioning itself as a market driven, fashion conscious lifestyle brand
with an emphasis on service and production.
The company recently introduced international styles and trends for
women, men and kids, which have gone a long way in providing a trendy
and contemporary image to the company.
Bata, reinventing itself as an international retailer and ofering
customers the best in footwear in terms of fashion, quality and price has
introduced the concept of fagship stores to provide complete and unique
shopping experience at par with their stores abroad. International
trends, relaxed ambience, great products, and courteous staf at the
new-look Flagship store are all a part of Batas new marketing strategy.
The new store, conceptualized by Bata and designed by renowned
architect-designer Sanjiv Verma, refecting international trends, is totally
diferent from any other existing Bata stores in the country. Be it in
terms of colour, interior and product placements.
Further, to capture the retail boom prevailing in the country, the
company has decided to move its headquarters to Gurgaon this year.
Batas brand new collection of highly fashionable international range of
ladies footwear under the Marie Claire brand will be one of the major
attractions at this fagship store The store will also showcase top-of-the-
line brands including the latest international collection from
Weinbrenner, Hush Puppies, Bubble Gummer, Dr Scholls and Bata Tech
shoes. Brands like Nike, Reebok and Adidas will also be available. The
store will additionally ofer trendy accessories like caps, T-shirts and
other lifestyle products - making it a complete one-stop shopping
experience for its customers.
The company's conscious decision to cleanse its wholesale business by
building relationships with credit-worthy buyers and converting three of
its wholesale depots to 'cash-n-carry' on a trial basis has started to show
positive result.
In a bid to improve its logistics and distribution system, Bata has made
investments to the tune of Rs.20 million in the current year. Large
investments have also been made in the area of IT to integrate
approximately 150 stores on a real-time basis.
Thus the recent restructuring of the companys retail division is expected
to add a fresh impetus to the vision of continuing to be a truly global
retailer, ofering products to today's fashion conscious youth as well as
people from all walks of life is a challenge.
A recent statement issued by the company says that "it will continue to
remain a household name for the people of India - marketing footwear for
the family through a chain of modern large format retail outlets and
bringing in new trends and brands to suit the needs of both the
traditional and the trendy."

CONCLUSIONS
The market for the Footwear is undergoing a drastic change with many
MNCs entering Indian Market and showcasing and selling their products
in India.
This research has implication for the manufactures of the Footwears
particularly Bata India Limited as they can designed their product
keeping in mind the consumer expectation and consumer buying
behaviour. It also has great implications for the marketer as he can sell
Footwear more efciently and efectively after understanding the
consumer decision making process. This research also enlightens the
marketers that what role does features, cost, brand name,
advertisements, and other aspects play in purchase of Footwear. The
marketers can make sure how to motivate the consumers for their
product after a thorough understanding of the analysis of this research.
So the job of the marketer is to identify the kind of problems the
consumer is facing, the stage at which the consumer is and then prepare
the marketing pitch.
Thus, a marketer can ask a number of questions to know more about the
behaviour of his target customer at each stage of decision making: then
he can make the best ofer to the customer. Some such questions:
Thus, it considers the variables that are controlled by the marketer, such
as product features, promotional factors, etc and those which are beyond
the control of the marketer like socio cultural factors, infuence of family,
etc. Lot of these areas are covered in the questionnaire and is a part of
the analysis.
Need Recognition
Is the need explicitly felt by the customer or is it dormant lying
somewhere in the recess of their customers mind, from where it
needs to be brought to the conscious level?
What could be the motivating force (functional/ psychological beneft)
strong enough to drive a person to act?
What is the level of involvement with purchase?
Thus the marketers may think of the link between product attributes,
benefts, and motivation to avail of the benefts.
Information Search
What information quantitative or qualitiative does the customer
need?
How much information does he already have?
Is he motivated enough to search for more information?
Which media will he access to locate the information in?
Thus the marketers may show case the problem (if negative motivation)
or opportunity (for positively motivated customer). Also he may make
sure to provide adequate information in comprehensive form.
Alternatives Evaluation
What criteria does the customer use for evaluation?
Which competitive products (at generic level) and brands (at intra
product category level) are being evaluated against this marketers
brand?
What is his basis of evaluation, beneft maximisation (i.e. choose the
brand which gives maximum beneft maximisation (i.e. choose the
brand which gives maximum beneft compares with any other) or
inconvenience minimisation (which brand is likely to give the least
trouble, assuming that some/all brands have negative points)?
How does the marketers brand fair over those of the competitors?
Thus the marketers may relate product attributes to needs and wants
and then motives so that brand enters the choice set. He may make sure
that his brand has salience. He may talk about relevant
motivator/discriminator. He may make sure that favourable infuences
are reinforced and negative ones are countered through efective
communication.
Purchase
Does the consumer have money?
Will the ofer have to be adapted to specifc needs of the customer?
Does the customer want product with exact specifcations or will he
accept a near substitute also?
Which will be the intermediary channel that he will use for buying?
Thus the marketer can promote the his ofer heavily while weakening the
other marketers ofers. He may reduce cognitive dissonance, while
increasing satisfaction. He will have to co-ordinate between the 4 Ps of
marketing so that the consumer is motivated enough to purchase his
brand of microwave oven.
Post purchase Evaluation
Is the customer satisfed/dissatisfed/ To what extent? Why?
Has he told others also about his consumption experience?
If dissatisfed, has he complained? On which platform?
Will he come back to repeat his brand purchase?
Thus the marketer should keep reminding the customers about his
product and brand. By constant feedback from the customer, meeting
and exceeding his expectations and serving him to satisfy and delight
him, he may constantly claim his market leadership.
RECOMMENDATIONS
Bata India Ltd. is an established brand leader for ages and is very
popular in all the segments of society. But their designs are very old
fashioned and at present they are loosing their market share in
metropolitan cities in India.
It is recommended that they use the latest technology and give a new
look. To their existing products and also develop products in the Sports
and Luxury Segment.
It is recommended that they improve on their Sales promotion and
advertising to counter the competition they face from MNCs like Reebok,
Nike and Adidas.
ANNEXURE
QUESTIONNAIRE
Name:
Occupation:
Address:
Income Level (Per Month):
(a)<5000
(b)5000m 10000
(c)10000 20000
(d)Above 20000
1.Do you use Bata Footwear?
Yes No
2.Which brand of Footwear do you own?
Bata
Reebok
Action
Liberty
Nike
Adidas
Any other (Please Specify) ..
3. Do you perceive any signifcant diferences among diferent brands of
Footwears?
Yes No
5.Rate in the order of importance the following brands.(1 being most
important and 9 being least important)
Bata
Reebok
Action
Liberty
Nike
Adidas
6.Rate in the order of importance the following aspects in the purchase
of microwave oven. ( 1 being most important and 6 being least
important)
Cost ----
Features ----
Looks/appearance ----
Brand name ----
Advertisements ----

7.What was the basis of selection of Footwears?
Cost
Features
Advertisements
Brand Loyalty
Any other (Please Specify) ..
8.Who infuenced you in the purchase of Footwears?
Friends
Family Members
Relatives
Advertisements
Sales person
Any other (Please Specify) ..
9.Who made the purchase decisions in the fnal purchase?
Yourself
Spouse
Yourself & Spouse
Children
Any other (Please Specify) ..
10. Are you satisfed with the products of Bata India Ltd.?
Highly dissatisfed
Somewhat dissatisfed
Satisfed
Somewhat satisfed
Highly satisfed
Thank You