BATA PAKISTAN

Marketing Issues of Pakistan

MANZOOR AHMED MEMON

BBA (FINAL YEAR)
SUKKUR INSTITUTE OF BUSINESS
ADMINISTRATION

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 EXECUTIVE SUMMARY
The organization BATA shoe was established in the year of 1894, on August 24 by Thomas Bata
at Zelin Czechoslovakia. BATA Pakistan started the business in Batapur from 1942, The
registered office of BATA Pakistan is in Lahore. There are more than 400 outlets of BATA
Pakistan in the whole country.

BATA has brand image in Pakistan but currently they are facing so many problems.
BATA is facing problems from their competitors and new entrants in the market, The strength of
BATA Pakistan is that they have strong brand image because of their maturity, they are
financially strong. But they are also facing certain problems as well like they are charging price
more than the quality they are giving, there is lack of innovation in their product, and lack of
variety as well. Another issue that is very much important to focus is Promotion, although BATA
is promoting well in Digital media but they are lacking in social media promotion, they have not
updated their face book page since 2010-11 in contrast when we look at their competitors they
are promoting heavily on social media like Servis.

BATA Pakistan is also facing some other issues like Political Instability, High
electricity cost, law and order situation of the country is very bad that’s why they are also
facing problems from these areas as well, They are also facing problems because of changes in
the life style of people of Pakistan, they are now preferring fashionable and trendy products but
BATA is providing products with old design. That’s why other competitors and new entrants are
grabbing market share from BATA Pakistan.

As in this document it is clear that BATA Pakistan is facing many problems, so for their
better performance we have recommended them also, we recommended that BATA Pakistan
should start an innovation department, which only focus on the innovating products and change
their strategies with the changing life style of customers. As we highlighted the Pricing issue of
BATA Pakistan that the Price they are charging is not compatible with the quality they are
providing for that they should decrease prices or give high quality products at the same price.
New designs of BATA are rarely available in some cities they are available in Metropolitan
cities, so BATA should provide new products in all cities of Pakistan, as customers will get new
designs of BATA and will not get frustrated by seeing same designs every time.

We hope BATA Pakistan will change their strategies and grab the market share again
and will sustain their Brand image as well.

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Introduction:
Bata Ltd established in 1894 by Thomas Bata. The company is headed by a third era of the Bata
family with operations in 68 nations. Bata owns more than 4,700 retail stores and 46 preparation
offices.

BATA Pakistan started the business in Batapur from 1942, The registered office of BATA
Pakistan is in Lahore and the factories are in Maraka, Multan road and Lahore and the Liaison
office at Mai kolachi bypass, Karachi. BATA Pakistan is also listed in Karachi and Lahore Stock
exchange.

Bata Pakistan is serving its esteemed clients through a solid retail system comprising of more
than 400 retail outlets, 467 enlisted wholesale merchants, 13 wholesale terminals, 28 wholesale
wholesalers and 41 DSP wholesale establishments across the nation.

Being a multinational organization Bata Pakistan has assumed a key part in the budgetary
advancement of Pakistan. It has presented refined innovation and business abilities to the nation
and gave immediate and roundabout work to something like 10,000 individuals. Alongside its
own particular assembling limit Bata Pakistan is likewise outsourcing its items nationally and
internationally to meet the requests of its esteemed clients.

As the Corporate social obligation is a vital a piece of each business and Bata Pakistan fulfills its
CSR by belittling different beneficent organizations and likewise join in rehabilitation of public
opinion throughout the common debacles.

In addition Bata Pakistan is likewise working a worldwide program under the name of Bata
Children program, which means to make a brighter future for the youngsters of the group in
which we work. Under this system Bata Pakistan encourages and upholds under privileged
youngsters by giving shoes, gifts and likewise organizing distinctive solid exercises for them
which include values in their lives.

Bata the business pioneer is generally prepared to provide food the client's requests and to meet
future tests.

Vision

To grow as dynamic, innovative and market driven domestic manufacturer and distributor,
with footwear as our core business, while maintaining a commitment to the country, culture
and environment in which we operate.

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Mission
“To be successful as the most dynamic, flexible and market responsive organization, with
footwear as its core business”

SWOT ANALYSIS OF BATA PAKISTAN

STRENGTHS:
Brand Image
Reasonable quality at lower reasonable
price
Footwear for the entire family
Financially Strong
Conveniently accessible outlets in
various parts of the country
Provide training for managers and
employees
Nationwide retail network
WEAKNESSES
No continuity of leadership
No proper planning regarding
Advertisement
Low variety in Fashionable
shoes
About 5% decrease in net
sales in some last previous
years

OPPORTUNITIES
THREATS
E- Commerce
Customer Dissatisfaction
Acquired Partnership with
small players Price wars with
Entering new segments of competitors
Markets Competitors
Capturing Market where no Political Instability
other potential competitor
exists Economic Threat
Innovative Products Changing in consumer
New mediums for preferences.
advertisements

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 PESTLE ANALYSIS OF BATA PAKISTAN

Political instability
duties on export and import
high electricity cost
law and order issues

Economic crisis
higher energy prices
inflation interest rate and other monetary policies
low purchasing power of customers

life style changes

demographic changes
fashion changes

new inventions and developments

changes in information technology

tax policies
trade regulations
law and order situations

environmental regulations and protection

huge competition

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 7 P’s of BATA PAKISTAN
PRODUCT:
 Bata is offering very less variety in their products.
 They are offering products in old design, not focusing on trendy shoes etc.
 Mostly focus on the school shoes.
 No research and development.
 Very less fashionable and stylish shoes
 Not providing innovative products.

Bata is operating since 1942 but still they are focusing on the old designs and they are
not coming with the new designs, also there is a product issue that there is very less
Research and Development, as we know consumer’s preference is changing toward
the new innovative and trendy shoes but still bata is stuck in their old strategy. Now a
days people are preferring stylish and fashionable shoes, but Bata is still providing the
shoes with old designs, it means they are not changing with consumer preferences.

PRICE:
Price of Bata is not too much high, as they are targeting lower and middle class
people, but the valued they are providing is not compatible with price, at the same price
Servis shoes can be purchased that are so attractive and stylish.

PROMOTION:
When we compare the Promotional activities of BATA on Digital Media so it is
seen that they are promoting their product very less as compare to their competitors like SERVIS

Also Bata is lacking in the social media promotion which is very much threatening, when

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I visit their page, what I saw that there was no any updated since Dec, 2010

Because of this their followers and likers are very less on FB, in contrast with BATA,
when we see the FB page, they update their page on hourly basis this is the reason there are so
many followers and likers of SERVIS on FB.

It can be seen that how SERVIS is promoting on social media, and what about BATA, Sorry
BATA shoes…

PLACEMENT
There are 400-450 outlets of Bata shoes, but most of them are in Urban area and big cities
of Pakistan, in so many outlets there is issue of availability of different products, like Sukkur,
when I went to the outlet of BATA in Sukkur, I found no variety that is found in the big cities
like Karachi, Lahore etc. There is an only school shoe that we can say are available in every
outlet, but sports shoes and other shoes are only available in certain cities of Pakistan.

PHYSICAL EVIDENCES:

Whenever we go in Bata retail stores mostly we found maximum 5 seats for customers.
Especially during Eid day’s people were rushing in stores. So, it does not feel comfort to
customers. In many stores there is no any separate room or portion for females.

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PEOPLE:
The people who work on retail stores, they also do not behave equally with all customers. They
behave politely with upper middle class and they do not behave in good manner with lower class
and especially with villagers. All customers should be treated equally.

Process: They are following same traditional process from 20 years. Bata Pakistan does not
invest more in research and development. Resultantly no innovation takes place.

RECOMMENDATIONS AND SUGGESTIONS

 Bata should start an innovation department that only work for the new designs of shoes
sandals, kid’s shoes, sport shoes that customer need now a day’s to resolve the issue of
designing and meet the customer’s satisfaction. To identify customers need Bata should
increase research and development.
 Bata charge higher price than its quality, Bata should make their process more efficient to
reduce cost and charge low and give benefits to their customers, no doubt bata is famous
for comfortable shoes but somehow they are lacking now and people wants both comfort
plus stylish and also in affordable price.
 Bata should improve the leather quality to maintain their reputation as offer comfortable
shoes.
 Due to lack of availability of all brands of Bata on a single outlet, this is also
disappointing customers because customer wants new design products at least Bata should
work on it and make available all its brands that will increase choices because more
products increase more chances to be sell out.
 Marketing of products in very much important in today’s competitive world. Bata should
increase their marketing budget and new marketing champion with new products, Bata can
use digital marketing through social media Bata can get more market share because social
media impacts a lot on customers, Bata should start online store and sell online like other
international brands.
 Employee who worked on outlets should be trained how to deal with customers and guide
the customers in right way that what they exactly want.
 Bata should make new strategy and new process to compete with their competitors
because this is not time to go still with traditional methods as time changes process should
be change

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CONCLUSION:
BATA Pakistan is a mature company and currently facing problems internally as well as
externally, internal problems are from their strategies, as they are focusing on traditional designs
of footwear and not focusing on innovative and trendy shoes, they are not coming with variety,
also the price they are charging is not compatible with quality they are giving, BATA Pakistan is
also facing problem from their cobblers and new entrants who are using their products under
their own brand, BATA Pakistan is also not focusing on PROMOTION, as it was highlighted in
this document that Face book page is not updated from 2010, so how can they attract customers
on the other hand their competitors are Promoting heavily.

External problems that BATA is facing is from Competitors and new entrants in the
market, the competitors of BATA Pakistan are focusing on innovative products, fashionable
products this is the reason BATA is losing their market shares, also new entrants became
problem for BATA.

What BATA should do is a critical Question, but the recommendations we have provided
can be beneficial for BATA Pakistan. Like they have to start a innovative department that only
work for the innovation of new designs and styles, and respond to customers changing
preferences. They should decrease prices or increase the quality of their product because they are
providing low quality shoes at the cost similar to other competitors even more than their prices.
BATA Pakistan should promote more and should include heavy promotion on social media in
their promotion strategy.

Good Luck BATA Pakistan for their Future Business.

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