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In partial fulfillment of the requirement For the award of the degree Of MASTER OF BUSINESS ADMINASTRATION By MOUSUMI DAS Reg. No. 35080332 Under The Guidance Of Mr. J. DINESH, (Asst. Professor)
C ertified that this project titled MEASUR EMENT OF BRAN D AWAR ENESS AND B RAND LO YALTY O F BATA INDIA LI MITED, B ANGALO RE is the bonafide work o f Ms. MOU SUMI DA S who carr ied out the research under my supervision. Certified further, to the best of knowl edge the w ork reported herein do es not fro m part of a ny other project report or desertion on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.
SIGNAT URE OF
SUPERVISOR
DECLARATION
I hereby declare that the project wok entitled MEASUREMENT OF BRAND AWARENESS AND BRAND LOYALTY OF BATA INDIA LIMITED, BANGALORE, submitted to the School of Management, SRM University in partial fulfilment of the requirement for the award of the degree of Masters of Business Administration is a record bonafide research carried out by me under the guidance of Mr. J. Dinesh, Asst. Prof. School of Management, SRM University, Chennai and this project work has not formed the basis for the award of any Degree/Diploma/Fellowship or similar title to any candidate of any university.
DATE
MOUSUMI DAS
CHENNAI:
ACKNOWLEDGEMENT
I gratefully, acknowledge to all those persons who have supported me for the successful completion of this project internship work. I thank Dr. Jayashree Suresh, Dean, School of Management, and SRM University for providing me an opportunity to undertake this internship. I thank Mr. J. Dinesh, Asst. Prof. School of Management, SRM University, and Chennai, who allowed me to carry out the internship work successfully under his guidance and allowed me to get aware of the industry. I sincerely express my gratitude to Mr. AMIT MAJUMDER, GENERAL MANAGER BATA INDIA LIMITED, BANGALORE, who really helped me as the project guide like a mentor during the internship from his branch.
I would also like to thank all the faculty members of School of Management, SRM University and also the staff members of BATA INDIA LIMITED, BANGALORE.
Finally, I thank to all those kind enough respondents who provided their valuable time to me for responding my questionnaire that was mandatory for my internship work I had done.
ABSTRACT
This project is mainly about the Brand Awareness and Brand Loyalty of Bata India Limited. By measuring the Bata Brand Awareness will be able to find out how many potential customers are there for Bata brand. This will show that customers ability to recall and recognize the brand under different conditions and link to the brand name, logo, and jingles and so on to certain associations in memory. It helps the customers to understand to which product or service category the particular brand belongs to and what products and services are sold under the brand name. It also ensures that customers know which of their needs are satisfied by the brand through its products. This helps to identify and understanding their target customer. Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service or other positive behaviours such as word of mouth advocacy. By measuring the Brand loyalty, will be able to find out loyal customers for their brand and will able to know what they want more from Bata brand. Favourable brand attitudes are the determinants of brand loyalty consumers must like the product in order to develop loyalty to it. In order to convert occasional purchasers into brand loyalists, habits must be reinforced. True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behaviour. Measurement of Brand Awareness and Brand loyalty helps us to know how much Bata brand is popular in the market, and also their performance level in the market. Bata is one of the trusted footwear all over the world, so this survey will show how much consumers are satisfied with their advertisements and features on different shoe products.
CHAPTER-1
INTRODUCTION
1.1 INTRODUCTION ABOUT THE STUDY 1.2 OBJECTIVES OF THE STUDY 1.3 IMPORTANCE AND RELEVANCE OF THE STUDY 1.4 SCOPE OF THE STUDY 1.5 LIMITATIONS OF THE STUDY
1.1 INTRODUCTION:
The main purpose of this project is to provide an approach for analysing market structure in terms of brand loyalty and brand awareness for the purchase of Bata products. Ideally, your brand should be the first one that comes to your mind within specific product categories and associated with key consumer benefits. Consumers should be able to identify which products and services Bata brand offers. They should also be able to identify which benefits are associated with the brand. It is also useful to segment the market, based on brand loyalty and brand awareness and to understand the needs of loyal customers and potential awareness, as well as their attitude towards key brand attributes. The goal of this project is to create awareness among the consumers that there are different brands in the product categories in which the brand operates, and also to measure the consumer's behaviour of repeatedly purchasing a specific brand over a certain period of time. It is also useful to segment the market, based on brand loyalty and brand awareness and to understand the needs of loyal customers and potential awareness, as well as their attitude towards key brand attributes. A person's attitude toward a brand is relevant to the degree of their brand loyalty. Brand awareness is linked to consumers brand preferences, that salient brands are high in both intentions to buy the brand and brand loyalty. It is a well known fact that a distinctive brand identity is one of the most influential factors in determining how consumers differentiate between similar products and services. Both tools are separate in practice, but also used in combination with each other. It is the also the key to attracting new customers and retaining existing customers. The intent of this study is to provide insights of the needs of two groups of customers, repeat buyers and operations of the brand, in order to help corporations develop appropriate marketing strategies. This study was carried out in two stages: (1) segmenting the market into the two consumer groups; and (2) analysing the differences of the two groups based on the key factors that affect consumption behaviours.
Secondary objectives To find out the companys position in the footwear industry in the market. To find how much Bata brands are aware in the market among the consumers. To find out the loyal customers of Bata. To determine the factors which is affecting Batas promotional activities? To find out drawbacks of Bata brand.
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It is very difficult to influence and get right answer from old mentality customers. Therefore the result is applicable to Bangalore region only. These findings may not have much relevance in other regions of different from rest of the country. All the conclusions suggestions & recommendations will be made in the feedback obtained from the survey on the basis of responses given by the respondents.
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CHAPTER-2
PROFILE OF COMPANY
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2.1 INDUSTRY INTRODUCTION 2.2 HISTORY OF BATA 2.3 COMPANY PROFILE 2.3.1 OVERVIEW 2.3.2 GOAL OF BATA 2.4 PRODUCT PROFILE 2.5 REVIEW OF LITERATURE 2.6 MARKETING STRATEGIES
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One of the major factors for success in niche international fashion markets is the ability to cater them with the latest designs, and in accordance with the latest trends. India, has gained international prominence in the area of Colours & Leather Texture forecasting through its outstanding success in MODEUROP. Design and Retail information is regularly made available to footwear manufacturers to help them suitably address the season's requirement. The Indian Footwear Industry is gearing up to leverage its strengths towards maximizing benefits. Strength of India in the footwear sector originates from its command on reliable supply of resources in the form of raw hides and skins, quality finished leather, large installed capacities for production of finished leather & footwear, large human capital with expertise and technology base, skilled manpower and relatively low cost labour, proven strength to produce footwear for global brand leaders and acquired technology competence, particularly for mid and high priced footwear segments. Resource strength of India in the form of materials and skilled manpower is a comparative advantage for the country.
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machineries. Thomas J. Bata, the young son of Thomas Bata, convenes the 1st international congress of young Bata people. 1939-Bata operates 63 companies in various industries but footwear remains the core business with 60 million pairs sold per year in more than 30 countries. 1940-Part of the Company management under the leadership of Thomas J. Bata starts to operate from Bata, near Toronto, Canada. 1945-All Bata companies in Eastern European countries are nationalized by communist governments. The Company starts rebuilding itself from the remaining entities located outside Eastern Europe. 1960-The Companys headquarters are officially relocated in Toronto under the leadership of Thomas J. Bata. 1989-With the fall of Communism, Thomas Bata is invited by the new president, Vaclav Havel, to return to the Czech Republic and receives a hero's welcome. A chain of shoe stores is opened with the headquarters in Zelin, and a small shoemaking factory begins operations in Dolman Nancy. 1990-Creativity, product innovation and research for higher quality levels is the core of Batas product development policy. The results are the international high standard, Bata premium collection. 1995-Partnership develops in Eastern Europe. Bata stores reopen in Russia, Poland, Croatia and Slovenia. 1999-To adjust to the market evolution Bata undertakes a major reorientation from manufacturing to designing, marketing and distribution. 2001-Thomas G. Bata, the founders grandson becomes the Groups Chairman. A new international structure is implemented around 4 meaningful business units (MBUs) to give more focus to the business and gain synergies within each region, especially in sourcing and product development. 2002-As a part of re-inventing its core competencies, Bata shoe innovation Centres open around the world to focus on the development of shoes with exclusive comfort technology features and design. 2004-New steps into China with the opening of the Bata procurement centre in Guangzhou and a distribution partnership for the opening of Bata retail stores. 2006-Start of the 262 acre, Riverbank Township construction project to modernize the Batanagar factory complex near Kolkata. It is expected to be completed by 2011 with
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2500 modern houses for employees, a large hospital, a school, and IT Park, a hostel and residential along the riverside. Launch of the branded business division to consolidate our existing worldwide branded business activities into a leading industrial and professional footwear company. 2008-The Bata emerging markets unit was created in order to maximize the synergies of all operations in Latin America, Africa, Asia and India. 2009-The European shoe innovation centre (SICE) in Padova, Italy launched this year. As well as conducting research into new innovations, materials and design for our shoe technologies, SICE design and sources top quality products from the best worldwide suppliers for all our European stores.
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2.3.1 OVERVIEWServes one million customers per day. Employs more than 40000 people.
Operates 4600 retail stores. Manages a presence in over 50 countries. Runs 40 production facilities across 26 countries. Serves 1lakh customers per day. Employs more than 8900 people. Operates 1100 retail stores. Runs 5 production facilities across India. Network of 1600 retail stores. 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 centres 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 world-class shoe innovation centre 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 leadin g fashion source in Canada for young urban customers. Bata Shoe organization (B.S.O.) is the largest manufacturer and marketer of footwear in the world. Its global business comprises of shoe factories, tanneries, engineering plants, quality control laboratories, product development and research
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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.
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2.3.2 GOAL OF BATAVISION- To provide good quality shoes at an affordable price. By keeping in mind the comfort that needs to be there and providing new designs with it. MISSION- Introduction of a strong shoe line targeted to various market segments to maintain leadership through increased market share. QUALITY POLICY- All products produced at the companys manufacturing unit are checked for quality adherence before they leave the factory premises. The techniques used for quality checks include sampling and physical test. The merchandise is again physically tested for quality adherence by the stores manager at each retail outlet. OBJECTIVES Achievement of 100% estimated business in each category. Maintain a shoe line with 700 lines of which 200, 300, 150 & 50 lines for Men, Women Children & Plastic respectively. Introduction of a shoe line as per life style as well as fashion trend. Achieve an average 55% margin in each category Innovative ideas or system for better management of merchandise distribution by maintaining 4 times stock turn. STRATEGIES Penetration to new & targeted market segments through introduction of shoe lines as per life styles with supportive promotion activities Defined number of lines, assortment & quantity for each store according to merchandise classification & store profile in order to increase efficiency in distribution. Identification of loopholes in cost structure to increase production efficiency. Detail analysis of price points of entire shoe line in order to achieve maximum margin. Detail analysis of departmental work flow & bringing necessary changes for efficiency better coordination with other departments.
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(b)BATA ALL SEASONS- Bata all seasons brand is functional, fashionable footwear, primarily offering men and womens sandal and chappals. The brand caters to men and women looking for trendy footwear with a lot of style at a little price. Bata all seasons is convenient product for all those who are looking for an affordable and fashionable shoe to wear throughout the year.
(c)SANDAL BY BATA WATER PROOF-The brand caters to men and women looking for affordable, comfortable footwear at little price. Sold in larger volume during the rainy season. Sandal is a convenient product for durable water proof shoe to wear in summer and during the monsoon seasons.
(d)POWER ATHLETIC FOOTWEAR-Power international is athletic shoe brands owned by the Bata shoe organization and are currently offered in over 40 countries around the World. Power brand offers a range of priced contemporary athletic footwear.
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(e)BUBBLE GUMMERS-Fashionable footwear for children. Bubble gummers footwear responds to the needs of both parents and childrens and has consistently offered the younger customer quality, fashionable footwear with a focus on comfort, durability and an element of fun, ail for excellent value. Bubble gummer represents a wide range of childrens footwear that includes pre-walker, dress outdoor, casual, fashion, athletic, sandals and boots. Bubble gummers shoe are sold in over 40 countries as leading childrens footwear brand.
(f)NORTH STAR-Fashionable casual leather and textile footwear North Star bean as comfortable and affordable leisure footwear and has recently strengthened its fashion offering with the current trend towards retro sneakers. North Star American leisure style influences, typically demonstrated be people aged 16 to 30. It has become a fashionable comfortab leisure brand.
(g)HUSH PUPPIES-Comfort shoes technologically designed for men and women. Hush puppies are distributed in over 80 countries around the world. Hush puppies are truly comfortable shoe that provides long lasting shock absorbing comfort and excellent fit by conforming to foot. Bounce technology makes walking easier by storing and releasing energy, propelling.
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(h)MARIE CLAIRE-Marie Claire is a well-established brand of womens elegant evening and fashion footwear, made with high quality materials and manufacturing. The brand offers footwear for the fashion conscious and up to date trends blend with the promise of comfort and affords ability. The brands cater to primarily urban women providing high fashion dress shoe and sandals.
(i)WEIN BRENNER-Wien Brenner brand provides outdoor footwear for young men and women. Wien Brenner is casual style, comfortable and durable. The characteristics of the brand embody the outdoors. The brands construction, materials, rugged character and durability allow customers to enjoy the outdoors in comfort and style, all at high quality and value. Shoes compose the product line and boots designed for outdoors lifestyle and Casual Street fashions.
Thus Bata's well known brands include Power, Bubble-Gummers, MarieClaire, Hawaii, Naughty boy, Sandal, North-Star etc. International brands such as Hush Puppies, Nike, Lotto, and Dr Scholl are sold under manufacturing and licensing agreements. The company has more than 1000 shoe designs and caters to all the segments. Over 60% of sales come from the men's range, while children's and womens range account for about 20% each. In women's segment the Sun-drop range of casual ladies wear in the popular range has done well in the market and registered a strong growth of 500% in F12/2000. The brand is
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being endorsed by film star Rani Mukherjee. Bata also markets sportswear, readymade garments, hosiery, and other footwear accessories like socks, shoe polish, etc. The company also exports its products to countries like Germany, Australia, USA, UK, Holland, Denmark, New Zealand, France and Canada. It exports about 4mn pairs of shoes in a year.
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Market-Geography Strategy choices1. Local-Market Strategy 2. Regional Market Strategy 3. National Market Strategy 4. International Market Strategy
Among the market-Geography Strategies Bata follows the 'NationalMarket Strategy as they distribute their product to the whole of world using their own and Danish's distribution channel. Definition: Operating nationally.
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Objective: To seek growth. Requirements: Top management commitment. Capital Resources. Willingness to take risks.
Expected Results: Increased growth. Increased market share. Keep up with competitors
Among the Market-Entry choices, Bata Bangladesh uses First-In strategy which is characterized by the following: Definition: Entering market during the introduction stage. Two modes of entry are feasible: Conventional marketing strategy Initiator- Entering market with unconventional marketing strategies
Objectives: To understand the market first and reap the profit at the beginning and waiting for the competitors and strike them with good lowering price and improved quality. At the same time it offers variety of products. Requirements: Market research ability.
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Production capability.
Expected results: Putting market on a new growth path. Increased profits. Some growth opportunities.
Product Strategy choices: 1. Product-Positioning Strategy 2. Product Repositioning Strategy 3. Product-Overlap Strategy 4. Product-Scope Strategy 5. Product-Design Strategy 6. Product-Elimination Strategy 7. New-Product Strategy 8. Diversification Strategy
Among the product strategies Bata has used 'Product-Positioning Strategy' and 'Diversification Strategy' which is characterized by the following: Product-Positioning Strategy: Definition: Placing a brand in that part of the market where it will have a favourable reception compared with competing brands. Objectives: Position product in market so that it stands apart from competing brands. To position the product so that it tells customers what you stand for, what you are, how you would like customers to evaluate you. Requirements: Use of marketing mix variables (design and communication efforts).
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Successful management of a single brand requires positioning the brand in the market so that it can stand competition from the toughest rivals and maintaining its unique position by creating the aura of a distinctive product. Successful management of multiple brands requires careful positioning in the market so that multiple brands do not compete with nor cannibalize each other. Thus it is important to be careful in segmenting the market and to position an individual product as uniquely suited to a particular segment through design and promotion.
Expected Results: Meet as much as possible the needs of specific segments of the market. Limit sudden change in sales. Make customers faithful to the brands.
Distribution Strategy:
Definition: Developing unfamiliar products and markets throughConcentric diversification (products introduced are related to existing ones in term of marketing or technology), Horizontal diversification (new products are unrelated to existing ones but are sold to the same customers), and Conglomerate diversification (products are entirely new).
Objectives: Diversification strategies response to the desire forGrowth when current products/markets have reached maturity, Stability by spreading the risks of fluctuations in earnings, Security when the company may fear backward integration from its major customers, and Credibility to have more weight in capital markets.
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Requirements: In order to reduce the risk inherent in a diversification strategy, a business unit shouldDiversify activities only if current product/market opportunities are limited, Have good knowledge of the area in which it diversifies, Provide the products introduced with adequate support, and Forecast the effects of diversification on existing lines of products. Expected results: Increase in sales. Greater profitability and flexibility. Pricing Strategy choices For new products: (1)Skimming Pricing (2)Penetration Pricing At times Bata Shoe Company used 'Penetration Strategy' which is characterized by the following: Definition: Setting a relatively low price during the initial stages of a products life. Objectives: To discourage competition from entering market by quickly taking large market share and by gaining cost advantage by realizing economies of scale. Requirements: Products must appeal to a market large enough to support the cost advantages. Demand must be highly elastic in order for firm to guard its cost advantage.
Expected Results: High sales volume and large market share. Low margin on sales. Lower unit costs relative to competition due to economies of scale.
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CHAPTER-3
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3.1 BRAND AWARENESS 3.1.1BRAND AWARENESS PLAN 3.1.2 BRAND AWARENESS IMPORATANCE 3.1.3 BRAND AWARENESS OF BATA 3.1.4 BRAND AWARENESS STRATEGY OF BATA 3.2 BRAND LOYALTY 3.2.1 IMPORTANCE OF BRAND LOYALTY 3.2.2 CREATING BRAND LOYALTY 3.2.3 BRAND LOYALTY TOWARDS BATA 3.2.4 BRAND LOYALTY STRATEGY OF BATA
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3.1.1 BRAND AWARENESS PLANThe major components of a plan to develop brand awareness are: Identifying and understanding your target customers Creating a company name, logo, and slogans Adding value through packaging, location, service, special events, etc. Advertising After-sale follow-up and customer relations management
Targeting the right audience is crucial to your success. Of similar importance understands that you need a plan along with specific actions that increase awareness of your brand amongst your consumers. Throughout the entire process of creating a brand, it is of utmost importance to consider how what you do will increase brand awareness.
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3.1.2 BRAND AWARENESS IMPORTANCEYou may be asking yourself, is brand awareness really all that important? You may be saying to yourself, I have plenty of customers and sales are decent, why bother? The answer is: There are few things more worthwhile than investing time in your brands awareness.
It can play a major role in purchasing decisions. The reality is, the more aware consumers are of your product and your brand, and the more likely they are to buy from you. Among the challenges faced in selling pure maple products are: Do potential customers know you exist? Why pay more for Pure Maple vs. artificial syrup? Isnt Vermont maple syrup better? Why pay more for your products rather than from a less expensive alternative?
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3.1.3 BRAND AWARENESS OF BATABata is the most trusted name in branded footwear. Bata India Ltd. helps the genuine customers to claim against the quality issue of the shoe. Types of footwear Bata offered includes Rubber, Canvas, Leather and Plastic footwear. Bata offers new products in the market so that they can gain attraction of customers. Low-income consumers are often unaware of the products companies wish to sell and are typically beyond the reach of standard advertising and marketing strategies. Few consumers have consistent access to technology such as radios, television and computers, and most travel infrequently to urban centres. These limitations mean that information about new products of Bata is generally acquired through informal; non-market channels and those social networks are often the most powerful influences on a purchasing decision. In order to create awareness for Bata shoes, the company is planning to focus on fun events, promotions, contests, in-store merchandising. Global brands like Adidas, Nike, Reebok, Puma and Lotto have also stepped up their retail expansion activities in right earnest for their brand awareness. Indian majors like Bata, Liberty and Khadim have also responded positively to the new challengers in a bid to retain market leadership. They have significantly transformed their retail formats to become more lifestyle-oriented and are positioning themselves as vibrant and contemporary Indian brands. Bata doubled the number of preparing the collection, cut costs by outsourcing a lot of operations, and refreshed the collection with chic designs without increasing the price, so that Bata continued to remain very affordable. Batas strength lies in their family stores which have shoes for everyone . Bata positioning their stores as the most knowledgeable in India. But Bata to make aware of their newly arrived products in market they should come up with some good advertisements that convince customers to buy their products and also put some attracted banners in busy areas.
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3.1.4 BRAND AWARENESS STRATEGY OF BATABata draw up a brand awareness strategy that can continue to update throughout the development of their brand. To begin, they preliminary did research to determine how aware the consumers are about Bata brand. Then, decide what they think and perhaps what others suggest that might do to increase awareness and public recognition. Next, they compose a strategy how they would like to go about this. For example, perhaps your focus may be on your name, or perhaps the colours people associate with your brand, or even the way in which you promote and sell your products. Finally, they decide upon how they would like to execute these changes and increase brand awareness of Bata. Ultimately, they are able to see a change in how consumers perceive Bata brand and the level of recognition of their brand has acquired. For example, perhaps your consumer base expands to include of nearby towns or attract a different core consumer. Truly successful brand awareness often takes time to develop. First there is the time required to develop an effective awareness effort. Then there is the time required for your message to reach potential customers. A few customers will respond early, but most will take time to hear about your products, make a decision to try them, and even later return for more. Establishing customer loyalty takes the most time, as it requires extended experience with your business and products. As a result of specific actions, positive brand awareness is promoted. Brand awareness is essentially the impression people have of your brand. Do they know your brand as reliable high quality? As well established and distinctive? As a bargain? How is it that they have formed these perceptions? Perhaps from your logo? Or maybe from the way your products are displayed or priced? These opportunities to make a good impression are what are influencing your consumers awareness of your brand.
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BRAND LOYALTY
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3.2.1 IMPORTANCE OF BRAND LOYALTYThere are three main reasons why brand loyalty is important: Higher Sales Volume The average United States Company loses half of its customers every five years, equating to a 13% annual loss of customers. This statistic illustrates the challenges companies face when trying to grow in competitive environments. Achieving even 1% annual growth requires increasing sales to customers, both existing and new, by 14%. Reducing customer loss can dramatically improve business growth and brand loyalty, which leads to consistent and even greater sales since the same brand is purchased repeatedly. Premium Pricing Ability Studies show that as brand loyalty increases, consumers are less sensitive to price changes. Generally, they are willing to pay more for their preferred brand because they perceive some unique value in the brand that other alternatives do not provide. Additionally, brand loyalists buy less frequently on centsoff deals these promotions only subsidize planned purchases. Retain Rather than Seek Brand loyalists are willing to search for their favourite brand and are less sensitive to competitive promotions. The result is lower costs for advertising, marketing and distribution. Specifically, it costs four to six times as much to attract a new customer as it does to retain an old one.
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3.2.2 CREATING BRAND LOYALTYFavourable brand attitudes are the determinants of brand loyalty consumers must like the product in order to develop loyalty to it. In order to convert occasional purchasers into brand loyalists, habits must be reinforced. Consumers must be reminded of the value of their purchase and encouraged to continue purchasing the product in the future. To encourage repeat purchases, advertisement before and after the sale is critical. In addition to creating awareness and promoting initial purchases, advertising shapes and reinforces consumer attitudes so these attitudes mature into beliefs, which need to be reinforced until they develop into loyalty. For example, the most avid readers of a travel ad are those who just returned from the destination. Ads reinforce a travellers perception and behaviour. Remember, it is easier to reinforce behaviours than to change them and the sale is just the beginning of an opportunity to turn the purchaser into a loyalist. A few more points to keep in mind Develop an unbeatable product - if you want to keep customers, make sure they can get what they want from your product. Give customers an incentive to repeat purchase- chance to win a prize, gift with a certain number of proofs of purchase, in-pack discount coupon, etc. Stand behind your product if customers dont trust the product, they wont purchase it again. Know your trophy customers and treat them best of all remember the rule that 80% of sales will come from the top 20% of customers. Make it easier to buy your brand than competing brands availability and simplicity are keys in todays high-speed world. Customers appreciate convenience more than ever. Go to your customers - bring the product to customers when possible. Becomes a customer service champion seek to serve the customer and they will repeat purchase again and again!
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3.2.3 BRAND LOYALTY TOWARDS BATABata, as a trusted footwear brand try to satisfy their customers by providing best quality of products and services. There are many customers who are loyal to Bata products and services because they always prefer Bata, and repurchase footwear from them. The image of Bata in the Indian footwear industry is very high, so many customers they dont look after the price in case of Bata footwear as they have a belief about their service quality. Bata delivers what they promise to their customers so many customers they recommend their friends and relatives about Bata products and services. This shows the loyalty of customers towards Bata brand. Bata believe that the cost of acquiring customers is six times that of retaining them and, therefore, ensuring loyalty is commercially important. Loyal customers are also important because they provide the consistency of volume critical for mass production not to mention the consistency of revenue required to run a business. As a result Bata brands look toward loyalty programs to reward loyal customers and encourage retention.
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3.2.4 BRAND LOYALTY STRATEGY OF BATABata has taken three forms: Creating customer satisfaction- Delivering superior quality products and services. Building brand equity- The sum of the intangible assets of a brand. Factors that contribute to this are: name awareness, perceived quality, brand loyalty, the associations consumers have towards the brand, trademarks, packaging, and marketing channel presence. Creating and maintaining relationships- Success with any of these strategies will result in high levels of repeat purchase, insulation from price increases and improved responsiveness to marketing communications by customers. There has been an evolution of marketing thought and activity over this last decade. Initially, the quality movement placed customer satisfaction as the ultimate goal of marketing programs. However, as satisfied customers were shown to defect to other brands or providers at relatively high rates, strategists looked to creating a greater commitment with the customer. Two ways to achieve this were to build brand equity (primarily for consumer products) and to build relationships (primarily for industrial products.) Brand equity used mass media advertising, corporate citizenship and public events sponsorship to build a brand image. Relationship marketing sought to build interdependence between partners and relied on one-to-one communications, historically delivered through the sales force. With the growth of marketing databases and the Internet, the ability to reach customers individually became a viable strategy for a wide range of firms including consumer products companies.
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4.1 INTRODUCTION 4.2 RESEARCH DESIGN 4.3 LIMITATIONS 4.4 DATA COLLECTION 4.5 SAMPLE DESIGN
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4.1 INTRODUCTION:
Research is an endeavour to discover answers to intellectual and practical problems through the application of scientific method. Research is the systematic process of collecting and analyzing information (data) in order to increase our understanding of the phenomenon about which we are concerned or interested. It is an extensive survey of all available past studies relevant to the field of investigation. It gives us knowledge about what others have found out in the related field of study and how they have done so. A research methodology is the specification of methods and procedures for acquiring the information needed to structure or to solve problems. It is the overall operational pattern or frame work of the project that stipulates what information is to be collected from which sources, and by what procedures. If it is a good design it will ensure that the information obtained is relevant to the research problem and that it was collected by objective and economical procedures. A research design might be described as a series of advance decisions that, taken together, from a specific master plan of model for the conduct of the investigation. Although research designs may be classified by many criteria, the most useful one concerns the major purpose of the investigation. Type of research- Exploratory research or Formulative research. The research has been conducted within the data and information available to gain familiarity with the problem, to generate new ideas or to make a precise formulation of the problem. The current scenario is observed and an attempt has been done to relate the various variables. The major purposes of exploratory studies are the identification of problems, the more precise formulation of problems (Including the identification of relevant variables), and the formulation of new alternative courses of action. An exploratory study is often the first in the series of projects that culminate in one concerned with the drawing of inferences that are used as the basis of management action. That is, an exploratory study is often used as an introductory phase of a larger study and results are used in developing specific techniques for the larger study. Secondary sources of information, as used in the section, are the rough equivalent of the Literature on the subject.
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4.3 LIMITATIONS:
Brand awareness dimension was not found significant in the tested model. Brand loyalty help the marketing researchers and marketing managers to understand the market. These measures also help out to segment the market. The measures help to know the consumption frequency. Brand awareness measures the accessibility of the brand in memory. These measures help the Consumers rely only a few piece of information with which they feel confident to help them decide how the brand might perform. It is a well known fact that a distinctive brand identity is one of the most influential factors in determining how consumers differentiate between similar products and services.
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5.1 ANALYSIS AND INTERPRETATION 5.2 ANNOVA TEST 5.2.1 ANNOVA CALCULATION 5.3 CHI-SQUARE TEST 5.3.1 CHI-SQUARE CALCULATION
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5.1 ANALYSIS AND INTERPRETATION: Question2- Familiarity with Bata shoes FAMILIARITY
NEVER HEARD HEARD,NEVER BUY BUY OCCASIONALY BUY ON REGULAR BASIS
RESPONSES
5 8 26 21
43%
Interpretation- 43% of the customers buy Bata products occasionally, 35% customers buy on regular basis, and 13% customers have but never buy, 8% never heard.
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AT TRIBUT ES
STYLE DU RABILIT Y C OMFORT PRICE OTHERS
RESPON SES
9 28 17 10 6
Interpr etation- 40% custom ers associ ates dura bility for B ata products, 24% as sociates comfort, and 14% associates price and 13% associates style, 9 % associates others.
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RES PONSES
13 19 22 6
10% 22% MOR E THAN 20 YEARS 37% 32% BETW EEN 1020YEARS BETW EEN 110YEARS NEVER USED
Interpr etation- 37% of the customers are using Bata products for 10 years, 32% of the customers are usin g for 20 ye ars and 22 % of the customers ar e using for more than 20 years and 10 % customers they hav e never use d Bata products.
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RESPONSES
21 19 12 6 2
Interpe rtation- 35% of the customers are suitabl e with Bata , 32% customers are suitable with Reebok and 20% of t he custome rs are suitable with Addidas, 1 0% custo mers are suitable with Nike, 3% custo mers are suitable with Khadims.
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RESPONSES
19 14 27
32% 45%
FULLY SATISFIED SATISFIED
23%
Interpr etation- 45% custom ers are n ot satisfied with Bata sports w ear, 32% a re fully satisfie d and 23% are not at al l satisfied with Bata s ports wear.
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RESPONSES
29 17 14
23%
28%
Interpretation- 48% customers are fully satisfied with the variety of items and services in Bata stores, 28% are satisfied and 23% are not satisfied.
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COST AFFE CT
MO RE EXPENSIVE LES S EXPEN SIVE PAY ABLE RANGE
RESPON SES
19 7 34
32% 57% 12% MORE EXPEN SIVE LESS EXPENSIVE PAYABLE RA NGE
Interpr etation- 5 7% custome rs are satisfied with the cost of B ata product s, 32% customers feel they are more expensive and 12% feel the Bata products are less expe nsive.
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Question10- Advertisements capture the best qualities of Bata products and services
QUALITY OF ADVERTISEMENTS
VERY GOOD QUALITY GOOD QUALITY POOR QUALITY
Table 8: Advertisements quality
RESPONSES
7 17 36
12%
Interpretation- 60% customers think the quality of advertisements for Bata products and services are poor, 28% think they are good, and 12% think they are very good.
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RE SPONSE S
6 6 32 13 3
Interpr etation- 5 3% custome rs will reco mmend tha t Bata shoe s are good, 22% will recomm end as the y are fair, and 10% will recomme nd very goo d and excellent, 5% will recomm end as poo r.
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R ESPONS ES
25 16 11 8
13% 18% MORE THA N ONCE IN A YEAR 42% OCASSIONALY 27% VERY OFTEN RARELY
Interpr etation- 4 2% of the c ustomers will repurchase more tha n once in a year, 27% will repurchase occasio nally, and 18% repurchase very often, 13% repurchase rarely.
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RESPONSES
28 32
53%
47%
ATTRACTIVE NOT ATTRAC TIVE
Interpr etation- 5 3% custome rs are not c onvinced w ith their ad vertisements to buy their product s and 47% of the custo mers get at tracted tow ards their p roducts.
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35 15
11 16
25 33
22 19
13 8
35 30 25 20 15 10 5 0 COURT ESY NATU RE FRIE NDLY SALES CONGENIAL EX ECUTIVE ENVIRONMENT DISCOU NT AND OFF ER HIGHLY SATISFIED SATISFI ED DISSATISFIED
Interpr etation- M any of the respondent s are satisfi ed with courtesy natur e in Bata showroom, some are highly s atisfied wit h discounts and offer given by Ba ta, and many of them think the sale s executive are not fri endly.
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IMPA CT ON BATA
SATISFIED
DISSATISFIED
33 13 19
21 23 29
6 24 12
35 30 25 20
15
Interpr etation- M any of the respondent s are satisfi ed with the public relat ions of Bata, some of the respondents are satisfied with sale s promotion and the customers are dissatisfied with the advertisements of Bata.
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Factors
PUBLIC RELATIONS
Very Good 33 13 19
Good 21 23 29
Poor 6 24 12
H0- Communication methods are independent of various attributes. H1- Communication methods are dependent of various attributes.
X1 33 13 19 X1=65
X2 21 23 29 X2=73
X3 6 24 12 X3=42
Here, N = Total number of observations. N=9 Total sum of all the items = X1+X2+X3 = 65+73+42 T is total of all observations = 180 Correction factor = (T)/ N = (180)/9 = 3600
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Total sum of squares = [(X1)+(X2)+(X3)]-C.F = (1619+1811+756)-3600 = 586 Sum of square between factors of communication = [(X1)/N+(X2)/N+(X3)/N]-C.F = (65/3+73/3+42/3)-3600 = (1408.3+1776.3+588)-3600 = 172.6 No. of square within the methods of communication = (Total sum of square)-(Sum of the square between factors of communication) = 586-172.6 = 4.134
Analysis of variance Sources of variance Between communication factors Within communication factors Sum of squares 172.6 Degree of freedom 3-1=2 variance 172.6/2=86.3
4.134
9-3=6
4.134/6=0.689
From the above table, F = Variance between communication factors / Variance within communication factors =86.3 / 0.689 Calculated value, F = 125.25 Tabulated value F for 2, 6 degree of freedom at 5% level significant is 5.14 (from ANOVAs table).
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INFERENCE:
The calculated value of F is 125.25 which is greater than the table value 5.14. Hence we reject the null hypothesis H0 at 5% level of significant and conclude that communication methods are independent of various attributes.
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Oi Ei
Where, O = Observed frequency and E = Expected frequency Degree of freedom = (c-1) (r-1) Hence, Chi square,
OE
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NATURE IN BATA SHOWROOM COURTESY NATURE FRIENDLY SALES EXECUTIVE CONGENIAL ENVIRONMENT DISCOUNT AND OFFER TOTAL
HIGHLY SATISFIED
SATISFIED
DISSATISFIED
TOTAL
14
35
11
60
29
15
16
60
25
22
13
60
33
19
60
101
91
48
240
H0 There is no relation between ambience and nature in Bata showroom H1 There is relation between ambience and nature in Bata showroom.
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O 14 29 25 33 35 15 22 19 11 16 13 8
E 25.25 22.75 12 25.25 22.75 12 25.25 22.75 12 25.25 22.75 12 126.56 39.06 169 60.06 150.06 9 10.56 14.06 1 85.56 95.06 16 5.012 1.717 14.083 2.378 6.596 0.75 0.418 0.618 0.083 3.388 4.178 1.333
Total
/ =40.554
Degree of freedom
Tabulated value for 9 degree of freedom at 5% level significant is 16.9 (from Chi-square table).
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INFERENCE:
The calculated value of is 40.554 which is less than the table value 16.9. Hence we reject the null hypothesis H0 at 5% level of significant and conclude that there is relation between ambience and nature in Bata Showroom.
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6.1 FINDINGS:
43% of the customers buy Bata products occasionally, 35% customers buy on regular basis, and 13% customers have but never buy, 8% never heard. 40% customers associates durability for Bata products, 24% associates comfort, and 14% associates price and 13% associates style, 9% associates others. 37% of the customers are using Bata products for 10 years, 32% of the customers are using for 20 years and 22% of the customers are using for more than 20 years and 10% customers they have never used Bata products. 35% of the customers are suitable with Bata, 32% customers are suitable with Reebok and 20% of the customers are suitable with Addidas, 10% customers are suitable with Nike, 3% customers are suitable with Khadims. 45% customers are not satisfied with Bata sports wear, 32% are fully satisfied and 23% are not at all satisfied with Bata sports wear. 48% customers are fully satisfied with the variety of items and services in Bata stores, 28% are satisfied and 23% are not satisfied. 57% customers are satisfied with the cost of Bata products, 32% customers feel they are more expensive and 12% feel the Bata products are less expensive. 60% customers think the quality of advertisements for Bata products and services are poor, 28% think they are good, and 12% think they are very good. 53% customers will recommend that Bata shoes are good, 22% will recommend as they are fair, and 10% will recommend very good and excellent, 5% will recommend as poor. 42% of the customers will repurchase more than once in a year, 27% will repurchase occasionally, and 18% repurchase very often, 13% repurchase rarely. 53% customers are not convinced with their advertisements to buy their products and 47% of the customers get attracted towards their products. 38% feel there is discounts and offer in Bata showroom, 23% feel there is a courtesy nature, and 20% feel the sales executives are friendly, 18% feel there is a congenial environment. 62% believe in public relations of Bata, 25% believe in sales promotion, and 13% believe in advertisements of Bata Brand.
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Null hypothesis is rejected in case of chi-square test, it shows there is relation between ambience and nature in Bata showroom. Null hypothesis is rejected in case of one-way annova, it shows that the communication is not dependent on the various attributes like advertisements, sales promotion etc.
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6.2 SUGGESTIONS:
Give sales discount and free samples to influence more sales in the growing shoe market. Reduce the price level. More advertisements should be aired. Should build awareness among the potential customers. Bring more design, colour, and design combination to be competitive. To merge with the local companies and to expand more segmentation. Should come up with trendy, stylish footwear which can attract young generation. Should concentrate on sportswear. Bata should also look after their footwear durability and comfort to maintain good relations with their loyal customers.
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6.3 CONCLUSION:
From the analysis of Bata Shoe Company India Ltd and the shoe industry we have identified that the shoe industry is growing and identified their main weakness is insufficient lack of development with the rapid changing market needs, insufficient promotional activities, and downward trend of quality. On the other hand, distribution system and vertical integration are the strengths of Bata From strategic marketing viewpoint; we see that Bata is taking corrective steps in almost all the way. In very few sides Bata has lacking. Based upon these facts recommended strategies would assist in more growth of Bata shoe company India Ltd. in among the upcoming fierce competition in the shoe industry.
Before I conclude my project on a highly esteemed organization, I would like to submit public opinion in this favour. The pattern of job performance and the quality of Bata product is not highly appreciated by the consumers. I would like to give my view to entire Bata India Limited, Bangalore for improving their quality of footwear and also should come with some good sports wear as customers are not satisfied with Bata sports shoe. They should mainly concentrate on youngsters as now a day they want stylish and designable shoes and chappals. My survey reveals the facts which determine the mile stone achievement of organization.
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APPENDICES
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1) What is the first company that comes to mind when you think of brand shoes? NIKE BATA REEBOK ADDIDAS KHADIMS
2) How familiar are you with BATA shoes? Ive never heard of them Ive heard of them, but never buy their products I buy their products occasionally I buy their products on a regular basis 3) Which of the following attributes do you associate with BATA shoes? STYLE DURABILITY COMFORT PRICE OTHERS
6) Do you think BATA serves the purpose of being a good brand, for Sports wear?
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7) Will you prefer BATA launching a new range which can serve the purpose of service class?
8) Do you think you find a variety of items and services in the BATA stores when shopping?
10) Do you think our advertisements capture the best qualities of BATA products and services? If yes, please specify
11) How likely are you to recommend BATA shoes to a friend or relative? Would you say the chances are ------ ? EXCELLENT VERY GOOD GOOD FAIR POOR
12) How likely are you to repurchase products or services from BATA stores?
13) If you were new to our BATA products, would our advertisements be able to convince you to buy them? YES NO
14) List any other features that you would like to see in our services or products?
15) What recommendations and improvements would you suggest for BATA products and services?
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HIGHLY SATISFIED
SATISFIED
DISSATISFIED
HIGHLY SATISFIED
SATISFIED
DISSATISFIED
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BIBLIOGRAPHY
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JOURNAL AND MAGAZINESTHE ECONOMICS TIMES COMPANY JOURNALS THE HINDU THE TIMES OF INDIA
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