ABOUT BATA Bata is one of the oldest brand in the shoe industry originated from Lausanne, Switzerland founded in 1894. In 1914 company had a significant number of orders due to military orders during World War I. From that point of time Bata had grown tremendously in world market. People were happy with the quality of shoes which Bata were providing. Hence resulting in increasing demand of Shoes and related accessories of the Brand. Bata brand owns a lot of other brands acquired with time and new brands developed for new segments of targets.
ABOUT BATA INDIA (LTD.) About BATA India:-Bata India is the biggest maker and retailer of shoes in the country and belongs to the Bata Shoe Organization. It was established during 1931 as Bata Shoe Company Private Limited. Its Batanagar manufacturing facility is also the first of its kind in India to have been given the ISO: 9001 certification. Its major product categories are:
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Women
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Kids
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Men
PRODUCT
PRODUCT STRATEGIES Market Segmentation
Targeting Product Positioning and Differentiation Product Mix Branding Packaging
Labeling After Sales Service
MARKET SEGMENTATION Demographic Segmentation
Age : 0–5, 6–12, 13–19, 20–34, 35-49, 50-64, 65+
Sex: Male, Female
Income: Under 20K, 20K-50K, 50K-100K, 100K-200K, >200K
Geographic Segmentation
Psychographic Segmentation
City Size: Metropolitan Cities, Small Cities,Town
Life Style: Conservative, Liberal, Health and Fitness Conscious, Adventuresome, Status Seekers
Personality: Extroverts, Introverts, Aggressive, Authoritarian
TARGETING Differentiated Marketing Strategy - Target several markets and offers different products to different market segments
1
Kids (5- 12 years) • School Shoes • Sport Shoes
3 Women (2059 years) • Sandals • Sport Shoes
4 Men (20- 59 years) • Formal Shoes • Sport Shoes
2
Teenager (13- 19 years) • Casual Shoes • Sport Shoes
5
Elderly (60+ years) Comfortable sandals and shoes
PRODUCT POSITIONING AND DIFFERENTIATION
✓ ✓ ✓ ✓
Value for Money Good Quality Product A shoe for every occasion Trust and Loyalty factor
PRODUCT MIX Kids
Confident Women
Young Working Professional
Classic Design
Casual footwear
Urban casual footwear
Foot Problem
Athletes
BRANDING ✓ One stop shop for the family ✓ A fashionable value for money brand with prices that suit a range of customers ✓ Strong Retail Network ✓ Focus on relationship of trust and variety
Sub-Brands
PACKAGING
Attractive Packaging Publicity of the product Good protection of shoes Easy handling Ease of Opening and Closing the Box
(Shoe trial)
LABELLING
Picture of the product Product material (PVC, Leather etc.) Size of the shoe Description of the size
AFTER SALES SERVICE 1. Warranty Manufacturing defect 2. Shoe Repair Services 3. Product return policy Within 30 days Unused In original packing
PRICE
Marketing Mix is the perfect combination of elements you need to get right for effective marketing. Pricing is one of the most important elements of the marketing mix, as it is the only element of the marketing mix, which generates a turnover for the organisation .
FACTORS TO CONSIDER WHEN SETTING PRICES: The price the company charges will fall somewhere between one that is too high to produce any demand
and one that is too low to produce a profit. Basically, if customers perceive that a product’s price is greater than its value, they won’t buy it. If the company prices a product below its costs, profits will suffer. Between the two extremes, the “Right” pricing strategy is one that delivers both values to the customer and profits to the company. The company also consider a number of other internal and external factors, including its overall marketing
strategy and mix, the nature of the market and demand, and competitors’ strategies and prices. An organisation can adopt a number of pricing strategies; the pricing strategy will usually be based on
corporate objectives.
TYPES OF PRICING STRATEGIES Penetration Pricing Skimming Pricing Competition Pricing Product Line Pricing Bundle Pricing Premium Pricing Psychological Pricing Optional Pricing Cost Plus Pricing Cost Based Pricing Value Based Pricing
:
PRICING IN BATA:
Bata offers its products at an affordable price especially at the high cost it offers for the entire family. Mass Marketing pricing is main strategy of Bata brand to maintain its low prices for all its brand products. Production of mass products leads to lower operating costs resulting in less product costs. Henceforth in India BATA have managed to maintain lower prices. Price of Rs.10. is kept as Rs.9.90 where BATA follows Psychological Pricing where it targets the psychology of consumer to lure and attract more customers towards its pricing. Hence, in India Bata is considered as quality brand of affordable cost.
PRICE TABLE:
Category
Price
Men
Max-8999 Min-151
Women
Max-5999 Min-119
Kids
Max-1299 Min-80
BATA’S TOP 10 INTERNATIONAL COMPETITORS ARE TIMBERLAND, WOLVERINE WORLD WIDE, PHOENIXVINTAGE, CROCS, DR. MARTENS, KHADIM, ONE SHOP LOVE, YOUTOO AMERICA, FAYPLES TRANSNATIONAL AND PLAZA POINTE APARTMENTS.
Revenue Table with Some Competitive Brands: Company
Revenue
Bata
$384.8M
Timberland
$1.8B
Wolverine World Wide
$7.7B
Crocs
$16.3M
Dr. Martens
$85M
Khadim
$385.5M
Youtoo America
$37.6M
Main competition for BATA in India is Red Chief, Woodland, Nike, Liberty, Puma and Reebok.
Target Market
Lower to middle income group as well as upper segment. There are two different criteria used in order to segment the market. Thus, Bata divides the market “geographically” as well as on the basis of “product type”. Conclusion
As we have discussed the price charged for the products and services is important because it is an income source and unlike the other elements of the marketing mix isn't a cost. It is also important because it determines how much profit the company make. The challenge however is setting the right price for the product and ensuring that the pricing strategy doesn't turn customers’ way.
PROMOTION
PROMOTION Bata is a well know shoe producer and vendor in the entire region. Bata’s success is based not only on their innovative design, but also thanks to great communication with customers. Their are only few major promotions it offers is during seasonal sales and discount days and the same is automatically communicated the market sphere through word of mouth by customers which ultimately allow it to save on promtion campaigns and in the end benefits customers only, with low price shoes.
PROMOTION MARKETING MIX The Promotion marketing mix deals with informing the target consumers about the firm’s product and persuading them to purchase the same and it also involves personal selling, advertising, sales promotion and publicity. Although, each and every company have to do their promotion in the market if they wish to survive in the long run. They make healthy relationships with their customers so that the sale can be met again and again and they also give their customer’s good treatment so that they never feel disappointed.
There are four types of mix in promotion : 1. Advertising 2. Sales promotion 3. Personal selling 4. Public relations
Advertising Advertising is the most important mix of promotion. It’s all done by newspaper, television or magazines etc. 1. 2. 3. 4. 5. 6. 7.
It is It is It is It is It is It is It is
a mass communication process informative action competitive act persuasive act a paid for a non personal presentation not the part of product
Sales Promotion Sales promotion is also an important part of promotion mix after advertising. It consist of diverse collection of incentive tools, mostly short term, designed to stimulate quicker or greater purchase of particular product or services by consumers or the trade. It is done with the channel partners as well as the customers.Its only objective is to promote sales quickly.
Personal Selling Personal selling is one of the elements of promotional mix. It becomes more important when : • • • •
The product is more complex The product is more expensive The product is bought frequently The customers is another business
Public Relations Public relations is an organization's communications that seek to build good relationships with an organization's publics, including consumers, stockholders, and legislators. When compared with personal selling, advertising, and sales promotions, expenditures for public relations are usually low in most organizations.
Public Relations Tool : Public relations is the practice of managing the flow of information between an individual or an organization and the public. Common public relation activities include speaking at conferences, seeking industry awards, working with the press, communicating with employees, and sending out press releases.
Lenny Filipova The New Face Of BATA
Ques. Now we come to this point that how bata promote their brands? Ans. Bata brand includes planning, implementation and most important one is that they build good good relations with their consumers and it’s mainly focused on the increase in the outlets and with doing limited advertisement. Here limited advertisement includes some developed brands, posters and newspapers and to maintain it’s leadership position growth, the company’s expanding more and more.
Bata’s tagline - “ The world moves on your feet.” As Bata’s tagline says it all that these are modified according to demographic profile of consumers. Everybody understands and connects easily with these simple one-liners like “ shoes for all “ The world moves on your feet , Outdoor is yours, Get comfortable today ; One world, One bata.
BATA CAMPAIGNS
PLACE
PHYSICAL DISTRIBUTION Bata as a company is a widely known and acknowledged “People’s Brand” for the worldwide shoe industry. Bata is extensively liked by a majority of the population, and is undoubtedly one of the most common and well known shoemakers and shoe Company of modern times. Today, it is still being managed by the original Bata family, and has headquarters in Switzerland, which handles operations across 27 manufacturing facilities world over, with an employee base of almost thirty thousand and more than five thousand retail outlets. It has a massive outreach and appeal to masses with active presence in almost half of the countries of the world, due to its highly effective and adaptable model of operations, employee satisfaction and welfare and image of being the common man’s shoemaker.
BATA TODAY Bata is one of the world’s widest reaching companies, with operations in 68 different 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:
Bata International serves customers in much of Asia, the Pacific 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 offering fashionable footwear. The worldclass 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 World’s and Nike Shops is the leading fashion source in Canada for young urban customers.
Market Analysis Within a given environment, marketing strategy deals with the interplay of three forces known as the strategic three C’s: the customer, the competition and the corporation. Based on interplay of the strategic three Cs, formation of marketing strategy requires the following three decisions: • Where to compete: It requires a definition of the market (e.g. competition across an entire market or in one or more segments). • How to compete: It requires a means for competing (e.g. introducing a new product to meet a customer need or establishing a new position for an existing product). • When to compete: It requires timing of market entry (e.g. being first in the market or waiting until primary demand is established).
Bata as a Retail Brand • • • • •
Sells over 50 million pairs of footwear every year. Serves over 150,000 customers every day. Sells through over 1250 retail stores. Operates 5 manufacturing facilities. Employs more than 6800 people.
Bata Shoe Organization Bata Shoe Organization's (B.S.O.) global business comprises of shoe factories, tanneries, engineering plants, quality control laboratories, product development and research centers. Bata distributes its products through approximately 6,300 retail outlets, 10,000 franchises and thousands of wholesale depots and dealers. More than 50,000 people are employed in producing and selling over 300 million pairs of shoes each year, primarily for the domestic markets in which B.S.O companies operate. Approximately 400,000 additional people and their families are engaged in the support services required by B.S.O. operations.
BATA BUSSINESS Bata Shoe Organization companies are involved in every facet of the business of shoes. Throughout the world, Bata services customers from the store sales floor to the factory floor.
Retailing Bata Shoe Organization companies have built successful retail store concepts to satisfy changing consumer tastes and needs. Each store features merchandise targeted to different lifestyles and people. The merchandise ranges from footwear to clothing and goods complementing shoe offerings.
City Stores Bata city stores offer the urban customers a wide variety of current fashion footwear and accessories. These stores are established in prime locations, and provide a high level of customer service, exclusive shoe lines with complementary accessories and contemporary shopping environments are to discerning shoppers.
Family Stores Bata Shoe Company is undoubtedly the world’s leading family footwear chain. The company offers a wide assortment of everyday fashion footwear. The products are primarily of the brand Bata. Nevertheless very carefully selected articles from both local and international brands are also marketed by the company.
Bata Bazar Bata Bazar is the largest display of Bata’s products among all others store concepts. It provides the customers with broadest range of products and accessories possible. This concept was introduced in 2003. They are ideally located in power centers commercial parks and outlet centers with easy parking facilities. There are 73 Bata Bazars being operated.
Clearance Outlets There are 3 Clearance outlets of Bata Shoe Company where discounted shoes are sold.
Men’s Eid Fashion, Dhaka
Bata India Bata Thailand
Bata Mumbai
Bata Bangladesh
E-Commerce Bata India generated a volume growth of almost 100% in online business during the year 2018 as Compared to the previous year. Its E-Commerce business reached approx. 750 cities across India with its shipments. In order to attract more e-customers, new partnerships have been entered into by tying up with leading on-line players e.g., Flipkart, Jabong, E-bay, HomeShop18, Myntra, Rediff, Indiatimes, etc. As a part of the strategy, Cash on Delivery service was launched for the end customer to facilitate the shopping ease. The Company‘s website www.bata.in has experienced a tremendous growth in traffic of approx. 2.5 million visitors.
Worldwidede Coverage of Bata Shoe Company Red zones have already been entered by Bata Shoe Organization.
Customer service Personalized service: Qualified and enthusiastic sales associates are engaged who take customers’ satisfaction to heart. In many countries customer service goes beyond the stores with home deliveries, orders made possible via catalogues, the web or even call centers.
Guaranteed customer satisfaction: In any Bata store in the world they repair, exchange or refund any products with defects. They also exchange or refund on unworn merchandise if one changes one’s mind. Proof of purchase is required for refunds.
Customer service center. Bata Brand: Basic Facts YEAR OF ESTABLISMENT AS BRANCH OFFICE : 1962 YEAR OF INCORPORATION AS FULL FLEDGED COMPANY : 1972 TOTAL MANPOWER : 4300 BATA‘S ANNUAL SALE PAIRS(2009) :35 M PAIRS BATA‘S ANNUAL TURNOVER IN 2009 :70M US $ AVERAGE RETAIL PRICE :4 US $
CHANNELS OF SALES: RETAIL AREAS NUMBER OF RETAIL OUTLETS WHOLESALE DEPOTS TOTAL NUMBER OF DEALERS .
: 30 : 350 : 20 : 1200
Bata, Czech Republic
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