1 Literature Review of BATA

2

Literature Review OF BATA
Submitted by :

Abhishek Mohapatra
Apuroop Pullabhatla
Russel DSouza
Srikanth Mallya

2 Literature Review of BATA



01 Early history of BATA and its evolution over time.
02 Initial positioning and subsequent repositioning.
03 Advertising, sales promotion and segmentation strategy followed by
the BATA.
04 Analysis of product and generic competition to the BATA.
05 Strategies adopted over time by BATA to tackle competition or
prime market expansion.
06 Distribution strategy followed by the BATA.
07 Summary regarding the future directions for BATA.

3 Literature Review of BATA
1. History and Evolution of Bata:
Bata India is the largest retailer and leading manufacturer of footwear in India and is a part of
the Bata Shoe Organization. The parent company Bata was founded by three siblings; Tom
Baa, his brother Antonn and his sister Anna with a small inheritance in the town of Zlin,
Czechoslovakia on August 24, 1894. Initially known as Bata Shoe Company, it was one of the
worlds first shoe manufacturers; a team of stitchers and shoemakers creating footwear not
only for friends and local residents, but also for distant retail merchants.










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1.1.Key Events:

1905: Tom Baa introduced mechanized production techniques that allowed the Bata
Shoe Company to become one of the first mass producers of shoes in Europe.
1914: The company had a significant development due to military orders.
1928: The companys head factory in Zlin was expanded as demand for the inexpensive
shoes grew rapidly.
1931: Bata Shoe Organization setup factories in Germany, England, The Netherlands,
Poland, France, Austria, Romania, Sweden, Switzerland, Egypt, Belgium, Finland,
Luxembourg, Hungary, Italy, Indonesia, Singapore and India.
1932: Tom Baa died in a plane crash and control of the company was passed to his
half-brother, Jan, and his son, Thomas John Bata.
1939: Due to the outbreak of World War II Thomas Jan Bata decided to move Bata
Shoe Organization to Canada established the Bata Shoe Company of Canada
By 1950: Bata was positioned as the worlds leading footwear exporter. From its new
base in Canada, the company gradually rebuilt itself, expanding into new markets
throughout Asia, the Middle East, Africa and Latin America.
In 1970s, 80s and 90s: Bata continued to grow through its new, innovative strategies
guided by Batas founding principles which focused on customers, marketing and
employees.
.










Today, Bata has a retail presence in over 70 countries across five continents, with a million
customers per day. It employs more than 40,000 people in its 5,000 retail stores, manages 27

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production facilities. It is estimated that since the day it was founded over 120 years ago, Bata
has sold more than 14 billion pairs of shoes which is more than the number of human feet that
have walked the earth!

The acting headquarters of Bata Shoe Organization is located in Lausanne, Switzerland. There
are 3 main Business Units: Bata Europe, based in Italy; Bata Emerging Market (Asia Pacific,
Africa and Latin America), based in Singapore, and Bata Protective (worldwide B2B
operations), based in the Netherlands.

1.2.BATA INDIA LTD
Bata is a name that needs no introduction to Indians. Incorporated as Bata Shoe Company
Private Limited in 1931, Bata India is the largest retailer and leading manufacturer of footwear
in India and is a part of the Bata Shoe Organization.
In 1932, an experimental shoe production plant was built in Konnagar, West Bengal with 75
Czechoslovak experts. Jan Antonin Bata then built an industrial manufacturing city called
Batanagar in South 24 Paraganas District in West Bengal in 1934, as well as other factories in
Digha near Patna, and elsewhere it India, employing more than 7,000 people. Later Batanagar
became one of the bigger suburban towns near Kolkata. The Company went public in 1973
when it changed its name to Bata India Limited. In 1993, it became the first manufacturing
facility in the Indian shoe industry to receive the ISO: 9001 certification.

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1.2.1.Bata India today:







It is one of the largest footwear manufacturers in India and sells a wide range of canvas, rubber,
leather, and plastic footwear. Its retail network of over 1500 stores gives it a reach that no other
footwear company can match in India. The stores are present in good locations and can be
found in all the metros, mini-metros and towns. The Company also operates a large non retail
distribution network through its urban wholesale division and caters to millions of customers
through over 30,000 dealers. It has 26 Wholesale depots, serving more than 500 wholesalers.
The company has a licensed capacity of 628 lakh pairs per annum spread across its five
manufacturing units at Batanagar (Kolkata), Faridabad (Haryana), Bataganj (Bihar), Peenya
(near Bangalore), and Hosur (Tamil Nadu). The company has two tanneries - one at Batanagar
and the other at Mokameghat (Bihar). The latter is the second largest in Asia. In total, Bata
India employs more than 12000 people.
Bata sells over 60 million pairs of shoes every year. South India is a major market for Bata,
from where it earns around 40% of its revenue. The company is the market leader in South,
with 16% share of the organized footwear market. Of the overall revenue, it derives nearly 85%
through retail networks, 14% from non-retail channels (dealers/institutional/industrial sales)
and remaining 1% through exports. Thus, the domestic market is the mainstay as far as revenues
are concerned.
Bata India is today traded on the Kolkata and Bombay Stock Exchanges. It has also consistently
outperformed the Sensex and broader Nifty year after year. For the first time in its history, Bata
Bata House Gurgaon and Bata India Factory at Batanagar

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India's Turnover crossed the coveted mark of Rs. 20,000 Million for the financial year 2013 by
achieving a total turnover of Rs.20, 984.1 Million. It also recorded a Net Profit of Rs.1, 907.4
Million for the year 2013.

2. Initial positioning and subsequent repositioning
Bata India was primarily known as a manufacturing company and it comes with a baggage of
being an old-school, no-frills footwear maker and retailer. It has traditionally positioned itself
as providing product lines catering to the middle class segment of the society. Bata was in a
way successful in positioning itself as a brand having stores with products to meet the needs of
almost all members of the family, since it had product ranges for children, men, women etc.
Bata enjoyed an almost monopolistic position in the organized footwear market in India until
late 1980's. Its simple, yet iconic, brown leather sandals and blue-and-white rubber slippers
were instantly recognizable and also are still recognized. Bata was the choice for everyone in
the family. Whether it was shoes for the monsoon, school shoes, formal wear or even comfort
wear for the elderly, the brand had something for every member in the Indian household. The
brand Bata was household name then and was the first choice footwear of the Indian middle
class.
But with time, Bata India had to come in line with the changed retailing landscape with the
arrival of malls and big retail chains. It also had to shed its image as a low-cost functional
footwear brand that appeals to the 40-plus age group. Bata started gradually losing its position
as market leader in the 1990's when its profit margins reduced drastically. Bata has suffered
due to an un-favorable impression of a perception drag and has been unable to connect with the
youth. This was due to a number of factors like
(a) Crowded store formats;
(b) Subdued store staff,
(c) Lack of presence in the media, etc.

2.1. Repositioning:
After three straight years of losses, Bata started to script a turnaround story from 2005. Marcelo
Villagran took over Bata Indias operations in 2005 and he brought about many changes in the

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company that have led to a turnaround. He is credited as being the man who brought back Bata
India from the brink of bankruptcy.

The focus was on revamping retail large format stores were opened and existing ones re-
modelled. Sandwiched between luxury brands from the top and mass market offerings at the
bottom, Bata had to leverage its considerable equity. The erstwhile Bata stores had a very
congested layout and the display of all SKUs was at times either not possible or not accessible.
However, with the revamping of stores, the company has now improved the design and layout
to make more products visible and available for touch and feel to the consumer. The company
has also extended the store timing by two hours (from the earlier 10 am 7 pm to 10 am 9
pm). The company has also decided to keep stores open on Sundays. This led to higher footfalls
and, therefore, improved inventory turnover. A drastic cut in employee headcount and
outsourcing labor-intensive operations helped in pruning costs. As part of the restructuring plan
set out by Mr Villagran, Bata opened 718 stores, closed down 524 and remodeled 296 stores
during CY05-12. The new stores opened were decided in a phased manner and designed
according to the target audience that it catered to.

The company now categorizes stores as: 1. Metro 2. Metro & Mini metro and 3. Smaller towns.
Based on this classification, it decides the store layout, product profile and location based on
that. While stores in metros are air-conditioned and stock more premium and fashion brands,
the metro and mini-metro stores are non-air-conditioned and stock products catering to the
aspirational upper middle class consumers. Similarly, in small towns, the stores are non-air-
conditioned and stock economy and mid-range products meant for mass markets.

In its strategic pursuit, Bata India continues to open approx. 100 new retail stores every year
across India and shut down or relocate unviable stores. Most of the new stores are of large
format having space of more than 3,000 sq. ft. and delicately designed to display each category
of footwear and accessories. These large format stores are designed to provide an excellent
ambience and delightful shopping experience to the customers.

Bata has also overhauled its merchandise strategy. It literally threw out its entire low-margin
inventory in 2005. They fixed a certain operating margin and have decided not to sell any shoes
whose margins are below that margin. And the efforts appear to be paying off as Bata is the

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market leader with over 16% share in the organized footwear segment. The company now plans
to increase the average store size to 5000 sq ft.

Bata India Ltd has witnessed constant growth over the past few years, which endorses its strong
understanding of the consumer needs and lifestyle. The footwear collection has vastly improved
over the years and many contemporary and fashionable designs of footwear have been
launched. The new designs have helped Bata to constantly increase its customer base while
meeting the changing lifestyle needs of the loyal customers. The manufacturing facilities of
Bata have also been upgraded with introduction of improved quality, better technology and
materials for producing footwear with a trendier look and comfort to meet the ever-changing
market requirements.
An exclusive range of ladies footwear and a variety of products for the kids and children were
launched, which have been well accepted by the customers. Bata continues to be the market
leader in Men's formal footwear, with Ambassador, Comfit, Moccasino - all brands recording
a high growth. In ladies segment, Marie Claire and Sundrop brands of footwear have recorded
a good growth. The footwear range for the children - Bubblegummer and Angry Birds
continued to be the most favourite brands in India. Other popular brands like Power, North Star,
Scholl and Weinbrenner - all have registered growth in volume in the year 2013.


Hush Puppies and Footin are two specific brands introduced by Bata India targeting the
younger consumers and the fashion conscious crowd.


2.1.1. HUSH PUPPIES

Bata India's premium Brand - Hush Puppies has been expanding in line with the overall retail
expansion program and continues to open exclusive stores and shop-in-shop stores in premium
departmental stores. At the end of year 2013, Hush Puppies had 34 exclusive stores and 37
shop-in-shops.

10 Literature Review of BATA


2.1.2. FOOTIN:

Bata India's new retail concept - FOOTIN offers
a new range of footwear focusing on affordable
fashion and trendy styles. In FOOTIN stores,
customers can get fashionable, young looking and
affordable footwear presented through a high-
density display concept. It is one of the new
business models with a different approach to
improve volume growth of the company. Since
2012, Bata has opened 8 new FOOTIN stores
across India, with range of footwear for both
men and women focusing on fashionable and
trendy styles at an affordable price.


2.1.3. NON RETAIL
Bata India's Industrial division is now recognized as the leading supplier in the safety footwear
market. The product range has been refreshed by launching new molds as well as new PU-
Rubber soles collection. The customer service function has been strengthened to provide
immediate response to the queries raised by the industrial buyers.

11 Literature Review of BATA
The strategy to focus on segments like defence, canteens, education, corporate, etc. has been
fruitful for Bata India and resulted in achieving good market penetration. A new range for the
healthcare segment has been launched with specialized footwear to be used in hospitals for
Doctors, Nurses, front office staff, maintenance team, etc.

2.1.4. E-COMMERCE
Bata India generated a volume growth of almost 100% in online business during the year 2013
as compared to the previous year 2012. 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 Companys
website www.bata.in has experienced a tremendous growth in traffic of approx. 2.5 Million
visitors.









3. Advertising, sales promotion and segmentation strategy followed by the
BATA.

BATA India has traditionally spent less than 1 percent of its total revenue on advertising. This
is far less than their competitors who spend anywhere between 5 and 10% of their revenue on
advertising.

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Location location location- is a mantra for retail success. BATA has banked on building its
retail store presence in middle of bustling bazaars in rural and urban areas and near urban
suburban train stations. Coupling the location with VFM (Value for Money) shoes for the entire
family has helped Bata sustain itself for three quarters of a century. The target segment for the
brand used to be the lower and middle income segment of the population.

Like any other retail brand in the business, BATA too holds sales promotions at specific time
periods in the year. These sales promotions are advertised through different mediums:

Outreach media Print Media Electronic Media Online Media
Bata was the first business to
place large advertising signs
at its own points of sale
Advertisement in
magazines &
newspaper
Promotion through
TV ads, Eg: Spring
Summer 2014
Facebook fan
club page of Bata
India has
2,66,430 likes.

3.1. Sales Promotion Strategy:
3.1.1. Price promotion: Price promotion refers to price discounting. It is done by two ways,
namely
DISCOUNTS: A discount on the normal selling price of the product. For example Bata a family
footwear brand with showrooms all over the city, is offering discounts ranging up to 50% on
shoes, sandals, chappals, ladies footwear, kids footwear and mens footwear. This offer is
available at all Bata footwear showrooms across the country.
END OF SEASON SALE: Bata often has End of Season sale which helps in boosting up the
sales figure.










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3.1.2. Sales at point of purchase:
Another feature of their sales promotion strategy is their point of purchase products. Products
like Dr Scholls foot cream, Knee Pain Relief Orthotic, etc are displayed over the cash counter
so as to encourage customers to make an immediate purchase.
3.1.3. Consumer promotions:
The tool already in use by BATA India group is Bata Gift Vouchers. The design of the
vouchers need to be complementary to the theme used for advertising so as to reinforce the
image of the brand.
These gift vouchers have the following features:
Convenient denominations
6 month validity
Redeemable on all BATA products.
Acceptable at over 1500 Bata stores across India.
3.1.4. 99 Magic formula: The psychological factor of prices ending with 99 gives the
consumer a feeling of a good bargain price as against a cheap prize. Bata India have
cleverly managed to use this strategy to their advantage.


(An old Advertisement of Bata)

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3.2. Bata Sub-brand Segmentation based on Indian Income Groups:


Upper Middle Class





Lower Middle Class


Low Income Group



4. Analysis of product and generic competition to the brand.

When we think of BATA, the first thing that strikes us is its INDIANNESS. According to
the HR manager BATA, it is the mass appeal that drives a customer to a BATA store. This is
largely because BATA offers the masses products and gifts in every possible price range they
can think of. The brand identity and position of BATA has been carefully crafted and
painstakingly embedded as a value proposition in the minds of consumers for generations. It
certainly promises a lot of value by virtue of consistent quality and positive word-of-mouth.
According to Mr. Anjanay Shrivastav (HR manager), most of the people in India don't even
know that BATA is not an India based brand. An example of mass appeal is also seen in the
fact that the school shoes category is synonymous with BATA.

The total revamp that BATA got as a brand in 2005 is aimed at targeting audiences in every
income group. And hence, the brand came up with products targeting the youth, corporate
executives, working women, sports enthusiasts and children. Prior to this strategy, BATA was
considered to be the Parle-G of the footwear industry, mass producing shoes and sandals of
the same type and features for all kinds of target audiences. Hence the new strategy was a huge

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development from its previously rigid and old-fashioned brand image. As part of their new
strategy, the new brands that came about were: NorthStar(youth), Marie Claire(women),
Bubblegummers(kids), Weinbrenner(Men) etc. However, one fundamental strategy that BATA
did not execute was the effective promotion of these brands in terms of their advertising. These
new brands did not have separate identities of their own and hence did not succeed in creating
images of their own.

4.1. BCG Matrix of BATA:



BCG Matrix describes the companys Portfolio analysis with respect to its Market share and
current market growth rate. Due to the competition from local brands of unorganized retail and
presence of low cost emerging brands like Paragon, Relaxo, Khadims, Sreeleathers etc. Bata is
losing its market growth though it has high relative market share. With incomes growing, Bata
needs to understand how consumer aspirations change and find ways to meet the changing
needs. So, in the coming years, Bata needs to focus on consumer insights, innovation,
renovation as well as improved value chain management for a good performance.

16 Literature Review of BATA
4.2. Generic competition to the brand
Indias per capita shoe consumption or the number of footwear (shoes, chappals, sandals) worn
by an individual has gone up from 1.4 shoes a year in 2004 to 2.2 shoes per year in 2010,
according to data from the commerce ministry, While in absolute percentage terms this might
not seem like a lot, in a country of a population of one billion people, the fact that in six years
people have gone from consuming 1.4 shoes a year to 2.2 shoes a year is a big change, said
Suman Roy Burman, president, Khadims, a Kolkata-based manufacturer and retailer. The
average shoe consumption in developed countries is about five per person per year.














8,155.07
2,376.24
666.61
553.8
392.52
328.18
2,065.17
1,211.83
56.99
485.04
318.7
707.35
190.74
65.64
7.08
13.21 8.64 43.37
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
8,000.00
9,000.00
BATA India Relaxo Footwear Sreeleathers Liberty Shoes Bhartiya Inner Mirza
International
Comparision with Other Brands
Market Capital (Rs. In Cr) Sales (Rs in Cr) Net Profit (Rs. In Cr)

17 Literature Review of BATA

In order to devise a competitive strategy for BATA, we need to analyze Porters Five Forces
Model. The model analyses the different aspects of attractiveness and competitiveness of the
market.

Bargaining power of customers:
High

The potential customers for footwear
industries can be broadly classified into two
categories-
Price sensitive customers who have a
huge bargaining power owing to the
presence of low cost brands and local
products.

High end customers who prefer to buy
discounted and high sale products from
retail outlets or through online
shopping like Jabong, Myntra, Yebhi
etc.

Bargaining power of suppliers:
Low


Shoes are made of leather, rubber and
nylon etc. The materials could be
classified as commodities, where the
manufacturing process adds the value.
For this reason supplier have limited
bargaining power over buyers.
Threat of new entrants:
Low
As this company has established its
name in billion hearts, customers are
keen to go for well-known brand;
hence the prospects of a new entrant in
the market are significantly reduced.
New entrants like Sreeleather, Relaxo
are constantly challenging Bata in low
cost segment for last 5-10 years.


Threat of substitute products:
High

As customers are often ready to switch
brands and try out different products of
the competitors in their search for the
best possible deal in terms of price,
quality of service etc, the threat of
substitute products of Khadims,
Liberty, Paragon etc is high.

Intensity of competitive rivalry:
High

Rivalry is more intense as there are lots
of equally-sized competitors in India
e.g- Liberty, Khadims etc.
Aggressive growth strategy of other
brands with low switching cost rivalry
is more intense in footwear industries.
4.2.1. Porters Five Forces Model

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Product
Development and
Diversification
Market
Development
Better Quality at
Low Cost
Customer Care
Initiatives
5. Strategies adopted over time by the brand to tackle competition or prime
market expansion.

To tackle competition and expand the market share Bata is adopting strategies over time e.g.
aggressive retail expansion, promotion of its brands, contemporary styling, and quality control
and strengthening its human resources. As far as growth strategies and competencies of Bata
are concerned in Prime market expansion, they can be categorized as:







5.1.Product Development and Diversification:
Bata has been holding a unique place in the heart of Indians for more than 75 years. Bata
Products have been designed as per various functional needs e.g. sports, casual footwear,
formal-semi and formal. From contemporary to fashion shoes, sports to outdoors, Kids to teens,
Bata today stands for trendy, colorful & youthful footwear destination offering shoes &
accessories for the entire family. With more than 1500 designs to choose from, the design
inspirations are upscale international at affordable price. Bata today design, source & market
many international footwear brands such as Hush Puppies, Naturalizer, Marie Claire, Sundrops,
Dr.Scholl's, Power, Weinbrenner and many others. The name Bata is not limited in footwear
industries, but Bata is also trying to excel in the arena of other propositions like- Umbrellas,
Belts, Bags and Sunglasses etc.







In line with our growth strategy of expanding our consumer base,
we are now adding a layer to our brand proposition the aspirational
layer while continuing to retain our core competence. Key additions
are being made to the catalogue with the introduction of new line of
umbrellas under the name Bata & I. These will be in vibrant colours
aimed at attracting the youth. Also plans to offer bags, belts and
sunglasses.
Sumit Kumar
Bata India Vice-President (Marketing and Customer Services)




19 Literature Review of BATA















5.2. Market Development:
The customer value proposition is substantial as Bata offers value for money along with the
trust which its customers have because of the established Bata brand. In terms of access,
functionality and selection options it always fulfils its promises of being a family outlet where
each member of the family can buy something. To increase the contribution from women and
children's footwear segments, Bata increased the display area for both segments across all
stores, complimented by launching newer trendy designs under brands like Marie Claire, Hush
Puppies, North Star etc.

Bata had made its presence in all corners of the country to introduce its current products into
new market segments- thereby accessibility to everyone becomes possible for the customers.
Bata derives nearly 85 per cent of revenue through retail networks, 14 per cent from non-retail
channels (dealers/institutional/industrial sales) and balance 1 per cent through exports. About
80-90 per cent of the retail revenue is from Tier I and II cities, presenting a huge opportunity
to tap rural and semi-urban markets, which are mainly serviced through dealer networks. Bata
has been present in towns with a population of 500,000 and above and plans to expand to 400
plus cities, with a population of more than 100,000, to improve presence in Tier III and rural
markets through the wholesale division


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5.3. Better Quality at Low Cost:
Retail footwear segment in Indian is very price sensitive and has been steadily growing over
the years. Major part of the demand is met by brands like Bata and Liberty. While international
brands largely dominate the higher end of the spectrum, the lower end of the market is
dominated by home-grown players as well as unorganized players.



5. 4. Customer Care Initiatives:
During the year 2013-14, Bata has further strengthened its customer care division. Effective
and satisfactory customer service continued to delight the customers at various points, i.e.,
starting at retail stores, during the sale interaction, post sales services at Customer Help Desk
and obtaining feedback from the customers. A new initiative - Passion to Serve program has
been adopted for the sales personnel which entitles them to periodic promotions. An exclusive
Customer Help Desk has been in place to assist the customer and to locate stores, inform
product availability, process online orders and to acknowledge all their valuable feedback. On
the Digital Space, through Facebook, Bata has entered into over 100,000 customers' personal
space and acquired more than 250,000 Likes on Bata Facebook page.











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6. Distribution strategy followed by the BATA:


6.1. Wholesale Channel Classification

6.1.1. Dealers
Family stores located in major cities. Some of the stores are air-conditioned. Products consist
of medium to high priced shoes for the whole family. These shops deal in local brands and
unbranded shoes from small manufacturers.
6.1.2. DSP - Dealer Support Program
Independent dealers who buy 100% of their assortment from Bata depots. A product mix of low
to medium priced shoes for the whole family. DSP customers are allowed to use red and white
square check signboard as per established policy.
6.1.3. Wholesalers
Shoe traders who buy merchandise to resell to traditional dealers located in rural areas and
street markets of major cities/towns. They keep inventory for replacement and sell on credit or
cash basis. Their focus is on volume products, some of them sell to institutions.
6.1.4. Industrial / Institutional
Large industries and private or public institutions who need to buy footwear for their own
workers can approach Wholesale division for their requirements.

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6.1.5. Department Store
Big multilevel modern and full service stores located in major metro cities. Selection of medium
to high priced shoes for men, women & children. The collection comprises products with local
and International brands. Full air-conditioned environment.

6. 2. Retail Store profile classification
With the shrinking of the world into a small global village, Indian consumers now aspire for
international taste and style. Bata has more than 1500 retail outlets in India and they aspire to
start 100 new outlets every year. To make things easier for the consumer Bata India has
introduced the concept of store classification and sub divided it into Flagship, City, Family and
Bazar stores.
6.2.1. Flagship
In metro cities. High class location. Fashionable products. Imported and International brands,
air-conditioned, luxurious and cozy atmosphere with comprehensive mobile display units with
new arrivals.
6.2.2. City
In Metros and semi Metros. High and commercial locations, shoeline catering to the needs of
fashion-oriented middle and high income group consumers. Air-conditioned store with panel
display and mobile display unit for brand promotion with new arrivals.
6.2.3. Family
High Traffic commercial location in major and boom towns. Medium to high priced basic
footwear, Non-air conditioned store with total commercial look, mass display, standard panel
and stooping rods.
6.2.4. Bazar
High traffic non-commercial location as destination store and small existing stores in thickly
populated and saturated markets. Basic and volume selling lines for low and medium segments
including liquidation and sub- standard clearance.

6.3. Exports
BIL (Bata India Limited) exports around 3 million pairs of shoes and other footwear annually,
primarily to Western Europe, Middle-East and Far-East markets. Majority of the export is
Canvas shoes under leading private labels to customers in the United Kingdom and France.
Men's leather shoes are sold to established retailers in Europe, Middle-East and Far-East.
BIL's most modern leather shoe Factory is located in Hosur (Tamilnadu) and is geared to make

23 Literature Review of BATA
international quality footwear for export. This Factory is comparable to the best anywhere in
the world with high degree of flexibility and is fully equipped to manufacture Men's, Ladies'
and Children's cemented and Moccasin shoes and other footwear.


7. Summary regarding the future directions for the brand:

Bata is on an aggressive expansion drive. The company wants to move to large format
stores, 50-percent of which will be set up in malls. In an effort to draw a younger
clientele, Bata also plans to add 20-30 'foot-in' stores every year from 2014.
Bata board is considering a proposal to start franchisee operations this year in smaller
cities where setting up company-owned outlets may not be viable. Meanwhile, its online
sales are growing at 200% year on year.
And to keep up their current 15- 20-percent growth momentum, Bata will also invest
Rs 80 crore this year, largely on modernizing and increasing production at their 3
factories in Kolkata, Bangalore and Pune.
Indian Finance Minister Arun Jaitley has announced in the Union Budget 2014-15 a cut
in the excise duty on footwear from 12 percent to 6 percent as a result of which a 10
percent surge in footwear stocks has been listed on BSE. According to Rajeev
Gopalakrishnan, managing director, Bata India Ltd, the middle class and lower middle
class, who make up close to 70% of the market, buy shoes below Rs.1,000 a pair; nearly
half of this segment buys shoes between Rs.500-Rs.1,000 a pair. Hence Bata is
continued to focus on improvement in customer service, addition of new products
ranges, training of employees, consolidation of manufacturing processes and
restructuring of non-retail sales division.
Bata has also rolled out new plans to connect with the youth of the country. It rolled
out its first commercial in years on March 14, 2014. This way the brand could to reach
out to consumers, highlight its offerings and build a fresh connection with the youth.
The brief is to contemporize the brand, showcase its aspirational and trendy products
and reach the evolving consumer; all centered around its Spring Summer' 14 collection.
With a peppy jingle, youthful imagery of flirtatious footsies and visuals full of colour
and life the plan is to attract eyeballs.

24 Literature Review of BATA
Always ahead in new designs, new features, new products. A relentless search will
continue for better quality and pursuit of excellence. Bata aims to provide new shoes
for its customers at every step of their lives, every week.
Bata will remain a household name to the people of India. Making footwear for the
family with a chain of ultra-modern retail outlets all around the country and bringing in
new trends and designs to suit the needs of the trendy and the traditional. Today, Bata
has repositioned itself as a marketing-driven company with emphasis on quality service
and production.



25 Literature Review of BATA

WEBLIOGRAPHY:



bata.in/0/pdf/Bata-India-Annual-2013.pdf

www.bata.com/our-history/

en.wikipedia.org/wiki/Bata_Shoes

http://articles.economictimes.indiatimes.com/2014-03-
12/news/48154356_1_indian-brand-bata-brand-positioning

http://www.bataindia.com/corporate.htm

http://www.moneycontrol.com/news_html_files/broker_report/2014/A
pr-190414-06190414.pdf

http://www.scribd.com

http://www.business-standard.com/article/companies/footwear-
industry-expands-steps-into-non-metro-mkts-111122000042_1.html