Success

Story of

BATA

Pakistan

By

Ehsan Ali
Muhammad Qasim
Farhan Mazhar
Zeeshan Ali Raza
Supply Chain Management Project
In
Masters of Business Administration

National College Of Business Administrative and

Economics

Fall, 2014
DEDICATION

We would like to dedicate our work to our parents. We would also like to dedicate this work to
brilliant minds of Pakistan who have always produce something valuable for their country and
made us all proud. Last but not the least, we would like to dedicate this piece of work to
Pakistan; land of pure people.

ACKNOWLEDGEMENTS
First of all we would like to thank Almighty Allah for all his blessings, the whole time we were
working on this project. Whereas, we would also like to thank all the publication resources
without which it would have been very difficult in obtaining any relevant material in the course
of our research.
We would also like to thanks to all those who have helped us in bringing this report together
especially our supervisor, Mr. Mudassir Alvi. We would like to acknowledge Mr. Mudassir Alvi
for his nonstop support and guidelines that helped us in a great deal. We are especially thankful
to him for his cooperation in providing the relevant guideline, which helped us in completing our
work.
In the end we would like to pay our gratitude to our parents, teachers and our friends for their
help and moral support.

Farhan Mazhar ( )
Ehsan Ali ( )
Muhammad Qasim ( )
Zeeshan Ali Raza ( )

Introduction and History

Introduction
Human society has transformed in leaps and bounces, and over the past few decades it has seen
some phenomenal changes. These changes could be seen in their businesses, life style, way of
doing work, and other day to day activities.

History of BATA Shoes

It was brain child of three brothers who were working on small scale in their town called Zlin,
Czechoslovakia on August 24, 1894. It was worlss first shoe manufacturing firm that made
shoes for their remote customers.
In ten years they were producing above 2000 pairs of shoes per day, which had all the qualities
that customers demanded. They faces many difficulties in their early phase, and in order to meet
growing demand during the early years, new production machinery was found in other countries
and innovative show making technique were setup by skillful and resourceful Bata employees.
New kinds of shoes were introduced using new way to promote them. Despite the outbreak of
the First World War (FWW) and material shortages, manpower shortages, corbels and other
challenges, sales increased to about two million pairs by 1917 which started the legacy of
BATA.
In the year 1920 new companies were established in Poland, Yugoslavia, Holland, Denmark,
United Kingdom (U.K) and the United States of America (USA). New companies were also
established in Egypt, Belgium, Finland, Luxembourg, Hungary, Italy, Indonesia, Singapore and
India before Tomas Bata died prematurely in an airplane crash in 1937. In the early 1930s they
were number one footwear Export Company in the world.
In the year 1920 new companies were established in Poland, Yugoslavia, Holland, Denmark,
United Kingdom (U.K) and the United States of America (USA). New companies were also
established in Egypt, Belgium, Finland, Luxembourg, Hungary, Italy, Indonesia, Singapore and
India before Tomas Bata died prematurely in an airplane crash in 1937. In the early 1930s they
were number one footwear Export Company in the world.

After Tomas death it was Mr. J. A. Bata with D. Cipera Bata started to look after the business
and the firm. He had already worked in several leadership positions with distinction and would
soon spearhead the establishment of our Canadian company.
This company was expected to become the new international home base of the beginning of
World War II (WWII) when it seemed that organization would lose its share in the market yet it
produced more than 100,000 pairs per year. Following the war, a temporary worlds headquarters
was established in the UK to help rebuild the seriously tired organization .In the early sixties the
Bata international center was built in Toronto, Canada intentionally planned to present the
building from being expanded.
When different companies were nationalized in different parts of the world it put more pressure
on BATA in its restructuring. It reacted slowly due to shift of working style, but soon invented
the ladies pump during the fifties and became so popular that it was even incorporated into the
company logo in some countries. This reinforced the importance of the companys long time
commitment to individual innovation and achievement.
In last few decades of the 20th century overall worlds manufacturing base was shifted to
developing countries due to cheap labor and cheap raw material. Mr. T .G. Bata totally utilizes
the companys mission statement as a guideline for Bata Company operation .To be successful as
a dynamic flexible and market responsive worldwide organization with footwear as its core
business.
The company identified a success point which included emphasis on international product1
brands and retail stores2. Now its worlds largest shoe organization whose operations span the
globe through 75 companies in 60 countries which together buy, sell and produce shoes in almost
every country on earth. These include shoe factories, tanneries, and engineering plants,
producing shoe machinery and moulds, product development studies, quality control
laboratories, hosiery factories and 6300 retail stores and 100,000 franchises more than 60,000
people are employed, producing and selling approximately 270 million pairs of shoes each year.
Now all these affairs are controlled by the foundries grandson.

Bata Pakistan Limited

In the year 1942 Batapur came into being some 18 km away from Lahore. It was due to hard
efforts, new ideas, and innovation it expanded its feet throughout the country. At present it
claims to be the largest shoe manufacturing unit in Pakistan.

Bata Pakistan Divisions

Bata in Pakistan includes three divisions that are production, marketing and administration.
With an annual production of 12 million pairs of leather, rubber, canvas and PVC Plastic
footwear of high quality it has prospering future.
At the same time Batapur has its own tannery, where leather of high quality is produced and is
being consumed in the manufacturing of footwear of all kinds that caters different market
segments and meets its export demand.
A new modern unit at Maraka, Multan road Lahore was established in 1984 which produces
highly sophisticated leather shoes on the most modern machines. Similarly, the company being
leader in the market, is also working on it operations like quality control laboratory, product
development department and engineering workshops etc.

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

Vision
Grow as dynamic, innovative and market driven manufacturer and distributor,
with footwear industry while maintaining a commitment to the country, culture,
and environment in which they cooperate.

Firm Structure
Organizational Structure:

General Manager

Area Sales MG
Manager
Operations

Manager Sales
Manager Finance

SALES EXECUTIVES

Retail Format/ Merchandising & Offered Products

RETAILING
Bata Shoe Organization companies have built successful retail store concept to satisfy changing
customer 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. Sensitivity to and satisfaction of customer wants and needs has
allowed the Bata Shoe Organization (BSO) to become a world leader footwear.

MANUFACTURING
Tomas Batas revolutionary business concept was to industrialize the shoemaking process of that
day. That type of thinking has been the driving force behind the Bata Shoe Organization success.
The Bata Shoe Organization has been as innovator in the manufacturing of shoes over the years.
Bata personnel have made important advances in DVP (Direct Vulcanization Process), PVC,
athletic footwear production and slush molded footwear production.

WHOLESALING
The Bata Shoe Organization enjoys a unique position in the wholesale marketplace. Global
economics of scale enable BSO plants to offer quality products at local process, with many
operating at ISO standards, Bata Shoe Organization production facilities are world renowned for
their commitment to quality and customers, and have attracted production contracts from many
international footwear brands.

City Store:
Bata operates stores in many of the worlds fashion capitals. Bata City Stores offer urban
customers the best in todays fashion footwear and accessories. These stores are in city centers
prime locations, and provide a high level of customer service, exclusive fashion shoe lines with
complementary accessories, and contemporary shopping environments to discerning shoppers.

Large Format Store:

Bata Superstores offer a wide assortment of fashion, casual and athletic footwear for the entire
family. Located primarily in urban and suburban shopping centers, these spacious stores offer the
best value by providing good quality shoes at great prices. Service is fast thanks to a selfselection shopping environment with qualified staff to serve and assist.
One of the cornerstones of the Bata Superstore is the sports area: a real store within a store. All
the key international sports brands are featured, carefully selected for the most discerning
customers.

Family Store:
Bata is the worlds leading family footwear chain thanks to the wide assortment of everyday
fashion footwear available in our stores from Milano to Delhi. The products are primarily the
Bata brand, with a carefully selected assortment of articles from both local and international
brands.

Factory Store:
Factory stores first opened in 2003 and are the largest and the most value-oriented stores of our
retail chain. They are ideally located in power centers, commercial parks and outlet centers with
easy parking facilities.
The product selection offers more than 10,000 styles of ladies, mens, and childrens and sport
shoes with related accessories and apparel sold at attractive price points. It is based on a selfservice concept with helpful staff available for service at any time.

Competitors
Stylo Shoes
Stylo Shoes in one the first-born ladies shoes/footwear brand of Pakistan. The brand established
in 1974. Currently Stylo Shoes is the largest female footwear brand with 89 outlets across the
Pakistan. Stylo Shoes is dealing in ladies shoes, kids shoes and leather handbags and accessories.
Bridal formal high heal sandal, casual ladies shoes and fancy chappals are Stylos famous
products.

Borjan Shoes
Borjananother fabulous footwear brand of Pakistan. In female category, Borjan is
manufacturing worlds class stylish and quality ladies shoes of all types. Borjan established the
stylish and gorgeous trends of seasonal range of ladies
fashionable and comfort footwear. Borjans bridal and fancy
ladies shoes and high heal sandals have really impact the market.

Metro Shoes
Metro Shoe is a leading international shoes brand in Pakistan. The brand quickly capture high
market share by offering the combination of domestic and international fashionable ladies shoes
in Sandal, High Heal Sanda, Bridal Shoes, Fancy Footwear and casual comfort chappals.

Servis
Servis is famous in sports footwear but the brand has made
success in ladies formal and fashionable footwear as well. It is one of the leading shoes brand in
Pakistan offering a wide range of ladies footwear. The famous products of Servis in ladies shoe
category are Liza and Calza.

Insignia Shoes
Insignia is an emerging ladies shoes brand of Pakistan. The brand is
most
promising in luxury ladies shoes brand. Insignia is a name of high end footwear fashion.
Insignias bridal shoes and high heal sandals are getting famous due to quality material and fancy
work of ornaments and accessories.

ECS Shoes
ECS (Ehsan Chappal Store) is an emerging and growing fashion footwear brand of Pakistan
focusing on trendy and fashionable ladies chappal footwear. The brand is rapidly growing across
the Pakistan and offering multiple products of ladies and girls shoes, bags and accessories.

Console Shoes
Another quality footwear and ladies shoes brand committed to quality and style. Console is an
international footwear brand and rapidly targeting ladies footwear and high end fashionable
ladies shoes market segment in Pakistan.

Aerosoft Shoes
Aerosoft is a famous brand in comfort footwear. The brand is famous in all over the world just
because of delivering comfort shoes. Aerosoft has a huge variety of casual wear shoes collection.

Regal Shoes
Regal Shoes is famous due to creative designs in formal and
casual ladies shoes/footwear. It is first designer footwear brand delivering total customer
satisfaction through innovation and quality. Regal Shoes has a wide array of products including
ladies shoes, formal ladies fancy shoes, sandals and slippers.

Market Share/ Position

Bata Today:
Bata is one of the worlds 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. Each group benefits from synergies specific to
their requirements, such as product development, sourcing and marketing support. Each business
unit is entrepreneurial in nature, and can quickly adapt to changes in the marketplace and seize
potential growth opportunities.
Bata International:

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:
Bata Europe 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:
Bata Latin America is based in Mexico City. Bata is the leading retailer of shoes in Latin
America and the leading marketer of childrens branded footwear.
Bata Canada:
Bata Canada is based in Toronto from where 250 stores serve the Canadian market. Its chain of
Athletes Worlds and Nike Shops is the leading 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 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 International Centre is located in Toronto, Canada. Mr.
Tomas Bata, the founder of Bata Shoe Organization, initiated this worldwide operation in Zlin,
Czechoslovakia, now known as the Czech Republic. The year 1994 marked the 100th founding
anniversary of BATA. Over the years B.S.O.s operation expanded across the entire globe and
established itself as the worlds largest organization in footwear manufacturing and marketing
Today Bata operates in 68 countries.
Bata Bangladesh:
Bata Shoe Company established by G. Bata in 1874 at Zing in former Czechoslovakia. From a
very modest beginning it has come a long way since, mainly by the vision of its founding father
and sheer commitment of its employee around the world. At first it only made and sold good

high quality shoes in and around Europe but as time goes by it crosses the boundary to Europe
and enter in many countries around the world. At the Pakistan period Bata was first came to this
country. After independence Bata continue their commitment to provide good quality shoes at an
affordable price. Many of the elderly people still remember the Naughty Boy shoe of Bata that
was known for its durability among the kids of that time. But since then Bata Bangladesh has
changed a lot. Now they are not only providing durable shoes but have brought new designs too
according to the taste of the people. Bata expands its operation all through the country. It has
now huge number of stores, agencies, dealers and wholesalers around the country. And
undoubtedly it has the biggest shoe manufacturing and marketing organization here in
Bangladesh. There are hardly any places in the country where one will not found Bata store,
which signals its expansion, success and popularity here.
Bata Bangladesh is a public limited company, which has 51- 49% share with the government of
Bangladesh. Though it has established in Czechoslovakia but at present Bata is a Canadian
company because of the migration and mergers of the family and now J. Bata who happens to be
the grandson of founder G. Bata has his operation and headquarter in Canada and operates as a
Canadian company. In Bangladesh it is operating as a Canada-Bangladesh company.
Bata has two factories in Bangladesh from where it produces all kinds of shoes. One of which is
at Tongi and other one at Dhamrai. The second factory at Dhamrai has state of the art technology
and facility with leather treatment to leather processing to waste treatment plants, which is the
only one of its kind in the country. Bata Bangladesh produces daily around 80,000 pairs of shoes
of various descriptions in its two manufacturing units located at Tongi and Dhamrai. It has a
modern Tannery with the latest technological facilities to process approximately 19,000 square
feet of leather daily, which comprise a wide range of products and finishes. The Tannery is also
equipped with a modern effluent treatment plant to ensure a pollution free environment. The
Companys marketing network is consolidated through its own retail outlets, distributors,
franchises, agencies, wholesale depots and a large number of registered distributors and dealers.

CHANNELS OF SALES:
RETAIL AREAS
NUMBER OF RETAIL OUTLETS
WHOLESALE DEPOTS
TOTAL NUMBER OF DEALERS

: 30
: 350
: 20
: 1200

Marketing Strategy, Brand Image, Positioning, Retail Marketing Mix

MARKET ANALYSIS:
Within a given environment, marketing strategy deals with the interplay of three forces known as
the strategic three Cs: 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).

Thus Marketing strategy, in terms of these three key constituents, is defined as an endeavor by a
corporation to differentiate itself positively from its competitors, using its relative strengths to
better satisfy customer needs in a given environmental setting.

Marketing Mix

SWOT Analysis

Marketing Mix

1. Product in the marketing mix of BATA

Since its very inception, Bata has had a huge product portfolio in terms of the large variety of
shoes, sandals and accessories that it offers and the consistency they promise. Millions, who look
for no nonsense products, heavily rely upon Bata and the no frills attached Bata shoes which can
be obtained at affordable prices. Owing to its reputation of supplying good quality shoes (and its
history of supplying shoes to military in the First World War) people expect the same durability
from Bata. Bata has over the years provided well designed products with focus on durability and
price.
This marketing strategy was in fact a hit in India, where rural areas are much larger than urban
areas, and rural population looks for cheaper alternatives. Due to its constant penetrative price
and the maintenance of good quality at that price, Bata showed consistent growth and expansion,
especially in medium scale market. Bata has recently also tied up with Hush puppies to offer the
premium range of shoes from Hush puppies thereby giving a refreshing air to the brand value. In
fact, after price, product is the strongest P in the marketing mix of Bata.

Main products of Bata Casual shoes, formal shoes, sandals, Men and women collection, sports
shoes, accessories
Brands under Bata Hush puppies, Sparx, Sandak, Power, North Star, Mocassino, Marie claire,
Comfit, Bata.

2. Price in the marketing mix of BATA

As discussed above, price is the strongest P in the marketing mix of Bata because BATA has had
fantastic response from the market due its affordable and mass market pricing. Anyone can
purchase Bata products easily. Bata uses psychological pricing as its pricing strategy. Bata
generally prices a product to the nearest lower 9 digit figure of the actual price. For example,
any commodity to be prices $10 is priced at $9.99 to lure and attract more customers. Bata
started this strategy in terms of pricing its products long back, but it is still being implemented in
Bata Showrooms.
Apart from this phenomenon, in general Bata prices its shoes very moderately, and keeps them
easily affordable, which is one of the key reasons for its growth. Off course, the pricing then
affects the premium customers and Bata cannot target the premium customers who think of Bata
as a mass market brand and not justifiable to their status. However, this is a conscious call by
Bata because it has some premium products like Hush puppies to drive margins, whereas other
products are mainly present to drive turnover and quantities.

3. Place in the marketing mix of BATA

Placement of Bata and all its subsidiaries has been widely effective because it was done after
regular market research studies. In fact, maintaining the low cost of product is possible for Bata
only if has widespread distribution and economies of scale work for the brand. Else, even
breakeven would be difficult for Bata if it did not rely on its distribution prowess. Distribution of
Bata products has been based on thorough research and forecasting of market conditions.
All the international markets were first studied for segments, cultures, economic conditions and
overall responsiveness and then entered. It has strategically placed its manufacturing units across
27 locations, which serve their respective regions swiftly and without hassles thereby making
expansion highly economical, and at the same time promoting further expansion. The strength of
Bata in India is rural distribution. Even in rural India, showrooms and dealerships of Bata are
found to be available which has helped promote the brand even further.

4. Promotions in the marketing mix of BATA

Bata, since the very beginning has not believed in extensive media or public related promotion,
so much so that one seldom comes across a television commercial or print advertisements by
Bata. It highly relies on its century long legacy, for which it has all the loyalty of customer base
that it aims and targets. By showing more promotions, Bata would be increasing its cost. And
this cost will then increase the overall price of the product, which is a negative point for Bata
considering that it is targeting the mass market.
Thus, almost an undifferentiated marketing strategy exists for Bata. Only major promotions it
offers is during seasonal sales and discount days, and the same is automatically communicated
within the market sphere through word of mouth by customers, which ultimately allows it to save
on promotion campaigns and in the end benefits customers only, with low price shoes.
From time to time, Bata does introduce new product through TV commercials, but in general it
relies on its pull strategy and brand equity to bring more customers to the showroom. When there
was no adidas or reebok, Bata was present throughout the country. Thus it has fantastic brand
equity, and hence till date Bata is still a leading brand for shoes. However whether this brand
equity stays with the company, or withers away due to increase in competition is yet to be seen.

Advertisement Strategy
BATA has not taken care of all the marketing strategy of their product dealers dont have do
much on marketing part all is done by BATA himself. BATA promote their product via
advertising. There are different media through which BATA advertise their product they are:
All this kind of promotion techniques is hold by the BATA Hoardings:
1.
2.
3.
4.
5.

T.V. ADVERTISEMENT
NEWSPAPERS
MAGAZINES
BANNERS
AMPHLETS DISTRIBUTION

So the product is marketed by both manufacturer and the dealers. But the major difference is that
the manufacturer markets the product in huge scale and dealers in a very small scale.