263837362-bata-project.docx

Marketing Strategies Of Bata India Ltd.

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INDEX CH # 1

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3 4

5

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PARTICULARS INTRODUCTION  Introduction  Significance & Scope Of Study  Objectives  Research Methodology MARKETING  Introduction  Meaning & Definition  Features Of Marketing.  Importance Of Marketing  Functions Of Marketing FOOTWEAR INDUSTRY  Customer Wallet Allocation  Indian Footwear - Overview COMPANY PROFILE  Bata Profile  Market Share  Branch Profile  Branch Details. ANALYZATION & INTERPRETATIONS  Product Details  Marketing Setup Of Bata.  Market Competition FINDINGS & RECOMMENDATIONS  Observations & Findings  Suggestions & Recommendations  Customer Feedbacks.  Questionnaires & Bibliography.

PG # 4 4 5 6 8 8 9 9 10 11 12 13 15 17 18 19 24 37 40 41 43 44

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Introduction In today’s dynamic world with the entrance of more rivalry the competition is getting intense. competition, Marketing is a key differentiator corporate success and failure. Hence, I chose to study aspect of Bata i.e. Marketing

more & In this between the vital

Significance Of The Study This project work will prove very significant to Bata Organization. Various gathered customer feedbacks will highlight the customer satisfaction of the brand. The study of the marketing strategies and their effectiveness will help Bata to take corrective measures and formulate better policies if necessary.

Scope Of Study: Scope means the field of study. In this project work I have studied various marketing strategies with reference to Bata India Ltd. I have also covered in my research product study, competition evaluation, customer response gathering etc.

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Objectives 1.

To Study The Marketing Concept.

2.

To Evaluate Khadim’s Share In Footwear Market.

3.

To Study The Marketing Strategies Of Khadim’s

4.

To Understand The Effect Of Marketing On Brand

5.

To Study The Competition In Footwear Industry.

6.

To Compare Various Brands.

7.

To Collect Consumer Feedbacks.

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Methodology The approach I adopted towards beginning and completion of project is outlined below. 1.

TOPIC SELECTION:

Selection of the topic is the most important and difficult thing. Footwear Industry comprises of organized as well un organized sector. It is a prime necessity, hence, we find number of brands in this sector. So, I decided to study the Leader Of Footwear Industry – BATA INDIA LTD. 2.

OBJECTIVES:

“A Man Without Goal Is Like A Bird Without Wings." After selection of the topic, field of study was finalized and objectives which are mentioned later were determined. 3.

SOURCES OF INFORMATION:

After understanding the data requirement, the sources of information were identified. 4.

DATA GATHERING: Primary Data Was Gathered:  Through Printed Questionnaires.  Personal Interviews Of Authorities.  Through Customer Feedbacks. Secondary Data Was Gathered:

Marketing Strategies Of Bata India Ltd.

    5.

From From From From

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Various Books. Various Websites. Product Catalogues. Company Reports.

COMPILATION OF DATA:

After a hard field work a lot of relevant data was gathered. The next prime task was to systematically compil e the available data in different heads. This was done with a great care. 6.

ANALYZATION & INTERPRETATION OF DATA:

After compiling the data, it was further analyzed in order to derive certain findings and conclusions. 7.

PRESENTATION OF FINAL REPORT:

Presentation skill is very essential. systematically presented in the project report.

The

data

is

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Introduction To Marketing  MEANING: Before moving to the main topic, the term marketing should be understood formerly. Today marketing is the pivotal function of any business. Whether small or large, simple or complex, public or private – the real test of every business is in the market.  WILLIAM STANTON DEFINES: “Marketing is a total system of interacting business activities design to plan promote & distribute want satisfying products and serve as to present and potential customers.”  FEATURES:  Marketing creates time, place & possessions utility.  Includes all consumption.

activities

from

 Aims at satisfying human wants.  Marketing creates customer.

manufacturing

to

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 IMPORTANCE OF MARKETING:  Marketing raises standard of living.  Marketing creates employment.  Marketing acts as a source of new ideas.  Marketing acts as a source of income.  Marketing helps in development of economy.

 CONSUMER ORIENTED MARKETING: Modern concept of marketing is more than the physical activity. The modern concept is consumer oriented. Marketing is the function of the business which is concerned with the creation of the customers. According to Modern Concept: “A firm makes continuous & organized efforts to find out what the members of the community needs and how it can provide maximum satisfaction.”

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CLASSIFICATION OF MARKETING FUNCTION

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INDIAN CONSUMER’S WALLET ALLOCATION

Fig: Courtesy: Consumer Outlook Survey

The above mentioned chart shows the distribution of disposable income of an Indian consumer. The above chart clearly shows that an indian consumer allocates only 1.8% of his income to the footwear needs. 1.8% income of 100million customers makes the footwear industry one of the biggest market players. A cut throat competition is observed. Basically it is divided in organized and unorganized sector – of which the unorganized rule. In the organized sector there are national as wel l multinational brands which are competing for they larger share of pie i.e. bigger indian market share.

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INDIAN FOOTWEAR INDUSTRY: AN OVERVIEW India it the second among the footwear producing countries next to China. Footwear Production: The total footwear production in India was estimated at 186 million pairs in 2006-07, which was at Rs 10,000 crore in value terms in 2007, is estimated to have grown at the rate of 11-12 per cent in 2007-08 to over Rs 11,000 crore. Export: India’s export of footwear touched Rs. 26,073 million in 2006-07, recording an increase of over 30% as compared to the preceding year.

2004-05

2005-06

Source: “ Industry Marketing Size & Shares.” Economic Intelligence Service

2006-07

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COMPANY PROFILE Establishment: * 1894, August 24: The Bata Shoe Organisation was founded by Tomas J. Bata, a ninth generation shoe maker. * 1931, December 23: The Company was incorporated as “Bata Shoe Company Limited”. * 1956, April 6: The Company changed its name to “Bata Shoe Company Private Limited” * 1993: Batanagar factory became the first Indian shoe manufacturing unit to receive the ISO 9001 certification. * 2007: At Present, 51% of the shares are with Thomas G. Bata, 49% are with market shareholders. Business of the Company: Bata India Limited manufactures and markets all types of footwear, footwear components and leather. In addition, the Company markets products related to footwear, accessories, garments and sport goods.

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Registered Office: Bata India Limited, 6A, S. N. Banerjee Road, Kolata 700 013, West Bengal Tel: (033) 2244 3416-18 Fax: (033) 2227 7418 E-mail: [email protected] Bata Production Centres: 1) Bata Nagar - Kolkata, 2) Batagunj - Patna 3) Faridabad - Haryana 4) Hosur - Tamilnadu Current Delegations: Chairman: Mr. P. M. Sinha. Managing Director: Mr. Marcelo Villagran. District Manager Nashik: Mr. Arora. Manager Sharanpur Branch: Mr. Shekhar Raut. Current Turnover: The Company currently is operating all over the world The Average Annual Sales are: 45 million pairs i.e. more than Rs.8000 million ( USD 178 million). The 98% of the above mentioned is from domestic markets while 2% are from exports Achievements :  “RETAILER OF THE YEAR” – 2006 (Footwear).  “FMCG Consumer Reaction Award” (Shoes).  “Amongst 10 most trusted brands” – Economic Times.  “Top Preferred Footwear Brand.” – Images Magazine.  “Most Admired Brand.” - 4 th IFA Awards (Footwear).

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BATA’S SHARE IN FOOTWEAR INDUSTRY :

80 70 60 50 40 30

Unorgn Lakhani BATA Liberty

20

Khadims

10

Others

0

Unorgn

BATA

Khadims

Chart: 1 MARKET SHARE OF BATA INDIA LTD.

The Indian footwear industry is mainly dominated by the unorganized sector. The non branded items are more popular and economical to the Indian crowd. As the income of the Indian customer is considerably low as compared to other developing nations, the consumers prefer cheaper goods which are sold by the street hawkers and road sellers. Hence, the unorganized sector eats the major share of the pie. Bata has the major share amongst the organized brands in the market. It accounts for near about 9%

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Bata World Today:

    

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

Bata India today:  Serves 1 Lakh customers per day.  Employs more than 8000 people.  Operates 950 retail stores.  Runs 5 production facilities across India. Bata Nasik today:  Serves 600 customers per day.  It has 7 retail stores in nasik at present.  Employs more than 25 people.

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BRANCH

PROFILE

Branch Address: Bata Shoe Store, Suyojit Modern Point, Sharanpur Road, Opp. Police Ground. Nashik – 422002. : 0253 – 2314318 : +91 9970275599 Email: [email protected]

External View

Iinternal View

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Nature Of The Branch: Sharanpur Road Branch is the retail outlet of the Bata India Limited in Nasik. It is the most busy outlet of Nasik. Business Of The Branch: The Sharanpur branch deals in many products. It has * FOOTWEAR :

Men ( Formal shoes, Slippers, Moccasins ), Ladies ( Party wear , Sandals, Slippers), Children (Sports, Canvas, Slippers ). * ACCESSORIES: Shoe Polish, Shoe Lace, Brushes, Shoe Souls. Sport Socks, Bags, Bottles….etc. About The Branch: The branch commenced in 2004. It constitutes of workforce of 3 employees. It has an annual turnover of Rs. 60,00,000. It has the growth rate of 15%. It observes a daily walk in of 100-110 customers.

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PRODUCT Introduction: Bata India Ltd. Deals with a variety of products. From footwear to accessories it has its hands invested in many of the products. It caters the needs of almost all age groups and satisfies the customers of all income groups. Product Development:  Raw Material: The major raw materials used by the Company are raw hides, rubber, textiles, packaging material and chemicals polyurethane resin, polychloroprene rubber, polyamide resin.  Product Design: International designers conduct advanced product research. The focus is on introducing new and exciting products which are competitively priced and give value for money. India invests substantial amounts in developing new concepts and designs

Bata Products Are Known For: *Exclusive Style *Consistent Quality *Complete Comfort *Value For Money

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PRODUCT VARIETY: MENS SECTION

Formal Shoes: (499-1599) Sports Shoes: (699-2299) Casual Wear: (129-559) Party Wear: (699-1599) Sandals: (229-559) Slippers: (79-229)

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PRODUCT VARIETY: LADIES SECTION

Shoes: (299-599) Sandals: (399-999) Kolhapuris: (179-229) Slippers: (119-259) Heel Sandals: (559-999)

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PRODUCT VARIETY: CHILDRENS & ACCESSORIES SECTION

Party Shoes: (299-599) School Shoes: (199-399) Sandals: (219-359) Slippers: (699-1599) School Bags: (499-799) Other Accs: (39-129)

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MARKETING SETUP OF BATA Introduction: Marketing is an integral an the vital component of todays business unit. Marketing is a channel by which the needed product travels from the manufacturers to the market customers. Bata Marketing: The marketing division of Bata employs around 4,400 persons directly. In addition to selling footwear manufactured in its factories, the Company also markets footwear, accessories and other merchandise purchased by it from contract manufacturers.

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RETAIL Bata India Ltd. has special division which looks after the retail sector. This segment primarily looks after the marketing efforts of the Company operated outlets. Bata specially targets the individual customer world wide. Bata gathers 98% of its revenue collection from such retail outlets.. For greater efficiency andcoordinated marketing efforts this group is further divided in two sub groups.  FLAGSHIP CITY:

This group caters to the higher end products and to premier dealer outlets.

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 FAMILY & BAZAAR

Bata mainly aims at satisfying the needs of the individual customers. It tries to reach the maximum customers with as many outlets are possible. For e.g. in Nasik it self we have 8 company retail outlets. This family & bazaar outlets are generally designed by keeping in mind the average income groups of the indian consumers. The indian consumers are generally of middle class nature. Hence family & bazaar furni sh with the economical products. These groups caters to economy products and are more dependent on sales volumes. This group accounts for over 80% of the Company’s sales in volume terms.

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

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NON RETAIL

This segment caters primarily to the non exclusive de aler outlets which market the Bata range of products. 

EXPORTS:

The company operates in both the national as well as international markets. The main focus of the company is the domestic market but it also pays it attention to the world market which makes it a global brand. The share of exports in total reven ue of the company is only 2%. The company is not totally export oriented. 

WHOLESALE:

This group looks after sales carried out through non exclusive dealers across the country. The company allows some of the dealers to stock the company’s product in their own private shops. The dealers sell the goods from their own private retail shops. Company appoints them on the commission basis on the volume of the sales.

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

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ADVERTISEMENT & PROMOTION

Introduction: The main aim of today’s business organizations is to create a customer. The customer has a wide range of products to choose from. The customer has to be informed about positives of the company’s product. Advertisement is now a days an integral function of every organization. The company’s have to fight in the market arena hence they continuously induce the customer to buy their product. Companies expend a lot of their amount in advertisement. They adopt new and innovative means to reach the customer. In order to survive in this market competition they put continuous effort in this field. Modern Trends: In modern times, the company advertises on, T.V. commercials, Radios, SMS, Internet. Companies advertise their product through hoardings and boards which are placed on the signals, buildings, on buses & trains. To reach the individual customer directly distribution of leaflets, broachers, salesmanship are commonly observed practices. To attract customers the company organizes various sales and introduces some interesting festival schemes.

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Footwear Advertisers:

Bata has an advertising and sales promotion department to look after sales promotions, brand management and other marketing tools engaged by the Company to aid its product marketing efforts. This department works closely with both the Retail and well as Non Retail segments of the marketing division of the Company.

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

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HOARDINGS & BOARDS:

Hanging the boards on the roadside is one of the common practices. It creates the awareness amongst the residents and the pathwalkers about the branch and its availability. The Boards are economical, flexible, and feasible in nature. Boards even acts as a permanent asset . The Bata company retail outlets advertise their branch through hoardings and boards. At a nearby distance of every retail outlet a board directing towards Bata shoe store is observed. In Nashik, at all retail the sign boards are common . Some Pictures are attached below.

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

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CATALOUGES:

Bata Catalogues contain essential information regarding the product offered by the company. Well designed catalogue provide complete information regarding products, their pictures, size, specifications, colors, packing, uses and prices. The products are properly listed and indexed in order to facilitate order book and processing.

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

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SALES & SCHEMES:

The business organizations try to attract the customers by various promotional offers, sales, festive sales & schemes, stock clearance sales. The company provides huge discounts and concessions to induce the customer to buy their products. The Indian consumers are in general we can say “Discount Oriented”. As we see no. of sales & offers throughout. The main success mantra of Big Bazaar departmental stores is the ‘Sell at Discount’. In Nashik Bata Outlets we observe schemes like: * Autumn Sale * Stock Clearance Sale * Heavy Discount .

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

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DISCOUNTS COUPONS & CONCESSIONS:

The company offers small chits or certificates which offe r price reductions to consumers for certain items. They are distributed through newspapers, magazines, package of the merchandise or even by direct mail. They offer special functions like they enthuse the consumers to exploit the bargain and serve as an inducement to the channel to stock the merchandise through introducing coupons. They are useful in introducing a new product and strengthening the sale of an existing product. Bata Offers the special discount round the year to the shareholders of Bata India Ltd. A coupon is attached…



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DISTRIBUTION CHANNELS Introduction: Marketing aims at satisfying the ultimate needs of the customers. It acts as a channel of distribution to deliver the goods to the ultimate consumer. Dispersing function includes Selling, Transportation, Storing, Grading, Financing, Risk bearing…etc. Bata’s Distribution Channel: Bata markets its products through 3 distinct channels . Dealers Network: The Company also uses the dealer network of the footwear industry to market its products. Through this channel, the Company supplies its products to non -exclusive wholesale distributors who in turn distribute the Company’s products to independent dealers across the country. The dealers covered under this channel are non -exclusive Bata dealers and hence sell footwear and related products of other companies also. 

Market Extension Programme: Under this programme, the Company appoints authorised dealers, subject to certain selection criteria who run outlets which exclusively market the Company’s products and adhere to rules and regulations of the Company. As on date, there are 470 such outlets in the country. The dealer outlets are not manned by Bata employees but are manned by the employees of the private dealer. 

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

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Company Operated Retail Outlets:

The company operates its own channel of distribution network. It establishes is own retail outlets across the globe. It sells its own produced products and others merchandise products. The company operates: 4600 retail stores across the globe. 950 retail stores across India. 8 retail stores in Nashik. Company is constantly increasing its retail outlets across the nation. Some newly opened are mentioned below

North Rai Market - Ambala Amritsar Mall - Amritsar Ranjeet Avenue - Amritsar Civil Line - Agra Ghaziabad - Delhi Rani Bagh - Delhi M.G Rd Allahabad - Allahabad Gumar Mandi - Ludhina

South Hyderabad - JNTU - Hyderabad Thillai Nagar - Tirichi Trans Tower - Trivandrum Ameerpet Market - Hyderabad South End Circle - Banglore Narayanguda - Hyderabad Palarivottam - Ernakulam Chandanagar - Hyderabad

East Siliguri Sevoke - Siliguri Hill Cart Road - II - Siliguri City Centre Salt Lake - Koltata

West Amraoti II - Amraoti Ghodbunder Road - Thane Margao II - Goa

Table: Newly Opened Centres

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RETAIL OUTLETS IN NASHIK: Bata Shoe Store, College Road, Nr. BYK College Nashik 422005.

Bata Shoe Store, Suyojit Modern Point, Sharanpur Road, Opp. Police Ground. Nashik 422002.

Bata Shoe Store, Kanchwala Apt., College Road, Opp. BYK Coll. Nashik 422005.

Some Other Outlets In Nasik: M.G. Road, Bhadrakali, R.K. Nasik Road, Nr. Vishal Mega Mart

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Competition In The Market The footwear industry is a very competitive market. The major share in this market is of the unorganized sector. The Indian consumer generally prefers the non - branded goods which comes with a reasonable quality and at much cheaper rates as compared to the branded goods. At present unorganized sector holds the biggest piece of the pie i.e. 74%, Bata holds 6%, Lakhani 1.5%, Khadims 1%.

COMPETITORS IN NASIK

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Competitor: KHADIMS

With its foray in footwear retailing in 1993 Khadim’s has scripted one of the biggest success storie s in the footwear industry. With the birth of independent India began a journey that was to set an example for others to follow. Growing from strength to strength, Khadims have converted every obstacle they encountered into a stepping -stone towards success. Khadim’s is among the top three national players in terms of organised footwear retailing. It has more than 250 exclusive retail outlets accross the country. Khadims also has a retail outlet in College Rd. – Nasik.

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Competitor: UNORGANISED SECTOR

In the Indian Market, The biggest competitor is the unorganized sector. It attracts a large quantity of consumers because of its reasonable rates and affordable quality. The unorganized sector holds the major share of 74% in the Indian footwear industry. In Nasik, we find such shops on a large scale. In Shalimar, M.G. Road, College Rd., RK, Panchvati we find such shops. Majority of the customers purchase non branded it ems. Where in showrooms we find Daily Customer Walk in of 40 -45 persons, it is 110-115 for street sellers. The advertisement is basically done by mouth to mouth publicity & shouting on streets.

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Observations & Findings After intensive field work and anla ysitation, the marketing strategies are well designed but they seem to prove in efficient to tackle the cut throat competition of this footwear industry. Here, I present some of my observations. 1)

Bata’s shoe designs are outdated and not as per the current fashion statement.

2)

Due to import of inferior quality goods the product quality has decreased over a period.

3)

The frontline sales forces have been curtailed by 70% which affects the customer service. Company has fired 300 employees last year.

4)

The company does not expend enough much on store renovation as required.

5)

The reach of the brand is not wide. The rural areas are covered under the spectrum.

6)

The leaves and off days are many as compared to other competitive firms.

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Suggestions & Recommendations It is well said, “Nothing Is Permanent Except Change” Here, I recommend some steps. 1)

Bata should carry on research to study the current design demands. The designs can be imported from China, Malaysia, Indonesia.

2)

The production cost of those products which are high can be imported from other countries.

3)

The human resource should be appointed as required. Curtailment affects customer satisfaction.

4)

The Bata Shoe Stores, should be renovated as per market requirements.

5)

Instead of opening retail outlets, it should provide agencies with good profit margin to private shopkeepers.

6)

Company should provide agency in rural areas to increase their sales. Bata should enter the Malls.

7)

The outlets should operate 365 days with extended working hours.

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Customer Satisfaction The prime aim of any business organization is to create a life long customer. The product should satisfy the needs of the customer and give them utmost satisfaction so they are attracted towards other brands. Bata holds the honor of being “ THE MOST PREFERRED BRAND (FOOTWEAR)” – Images Magazine 2006. During the field work, I collected some of the responses from the customers using this brand. I present some of the comments of the valued customers. 1)

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Conclusion The marketing strategies of Bata are well designed, but with the passing time they are required to be amended as per the current competitive demand. The Bata Company should concentrate on increasing its sale through agents and dealers instead of increasing its outlets which ultimately increases overheads. Bata, because of superior quality and customer preference is the leader of the industry. Slight modifications in current strategies will assure that it remains on the top.

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Annexure – Questionnaire Name Of the Company: ________________________________________________________ Company Profile:____________________________________________________________ (Reg. Off., Total Branches, History & Delegations) Principle of company:____________Brand Specialty: _______________________________ Local Branch Add:____________________________________________________________ Branch Commencement:___________ No. of employees:_________ Salary Struc.________ Customer Prefrences:__________________________________________________________ (Age Groups, Income Groups, Daily Customer Walkin) Annual Turnover:____________ Profit:_____________ Growth Rate: __________________ Marketing Stratergies:__________________________________________________________ (Cr. Facility, Distr Channel, ) ___________________________________________________________________________ Advertising:_________________ ________________________________________________ (Means, Budget, Effect, Reach, Focus, Discounts.) Product:_____________________________________________________________________ (Variety, Price Range,) ____________________________________________________________________________ Competitors:_________________________________________________________________ Problems: ___________________________________________________________________ Suggestions:_________________________________________________________________ COLLECT Certificate From Organization , Product Catalogue , Business Card , Picture .

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Annexure – Customers Feedback Form Name Of Customer: ________________________________ Product:___________________ Feedback: ___________________________________________________________________ _________________________________________________________ Sign:______________ Name Of Customer: ________________________________ Product:___________________ Feedback: ___________________________________________________________________ _________________________________________________________ Sign:______________ Name Of Customer: ________________________________ Product:___________________ Feedback: ___________________________________________________________________ _________________________________________________________ Sign:______________ Name Of Customer: ________________________________ Product:___________________ Feedback: ___________________________________________________________________ _________________________________________________________ Sign:______________ Name Of Customer: ________________________________ Product:___________________ Feedback: ___________________________________________________________________ _________________________________________________________ Sign:______________ Name Of Customer: ________________________________ Product:___________________

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Feedback: ___________________________________________________________________ _________________________________________________________ Sign:______________

Bibliography

Books Referred: Name Of Book Marketing Management Research & Methodology Bata Profile Books

Author P.C. Pardeshi

Edition 2010

Publications Nirali

P.C. Pardeshi

2010

Nirali

Bata Co.

-

-

Websites Visited: Name Of Website www.bata.in www.khadims.com www.wikepedia.org

Data Derived Company Profile Company Profile Marketing Theoretical Aspect