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Marketing Strategies Of Bata India Ltd.

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INDEX
CH #
PARTICULARS
1
INTRODUCTION
Introduction
Signifi cance & Scope Of Study
Objectives
Research Methodology
2
MARKETING
Introduction
Meaning & Defi nition
Features Of Marketing.
Importance Of Marketing
Functions Of Marketing
3
FOOTWEAR INDUSTRY
Customer Wallet Allocation
Indian Footwear - Overview
4
COMPANY PROFILE
Bata Profi le
Market Share
Branch Profi le
Branch Details.
5
ANALYZATION & INTERPRETATIONS
Product Details
Marketing Setup Of Bata.
Market Competition
6
FINDINGS & RECOMMENDATIONS
Observations & Findings
Suggestions & Recommendations
Customer Feedbacks.
Questionnaires & Bibliography.

Introduction

PG #
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37
40
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Marketing Strategies Of Bata India Ltd.

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In todays dynamic world with the entrance of more &


more rivalry the competition is getting intense. In this
competition, Marketing is a key diff erentiator between
corporate success and failure. Hence, I chose to study the
vital aspect of Bata i.e. Marketing

Signifi cance Of The Study


This project work will prove very signifi cant to Bata
Organization.
Various gathered customer feedbacks will
highlight the customer satisfaction of the brand. The study
of the marketing strategies and their eff ectiveness will help
Bata to take corrective measures and formulate better
policies if necessary.

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

Marketing Strategies Of Bata India Ltd.

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Objectives
1.

To Study The Marketing Concept.

2.

To Evaluate Khadims Share In Footwear Market.

3.

To Study The Marketing Strategies Of Khadims

4.

To Understand The Eff ect Of Marketing On Brand

5.

To Study The Competition In Footwear Industry.

6.

To Compare Various Brands.

7.

To Collect Consumer Feedbacks.

Marketing Strategies Of Bata India Ltd.

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

beginning

and

TOPIC SELECTION:

Selection of the topic is the most important and diffi cult


thing. Footwear Industry comprises of organized as well un
organized sector. It is a prime necessity, hence, we fi nd
number of brands in this sector. So, I decided to study the
Leader Of Footwear Industry BATA INDIA LTD.
2.

OBJECTIVES:

A Man Without Goal Is Like A Bird Without Wings."


After selection of the topic, fi eld of study was fi nalized and
objectives which are mentioned later were determined.
3.

SOURCES OF INFORMATION:

After understanding the data requirement, the sources


of information were identifi ed.
4.

DATA GATHERING:
Primary Data Was Gathered:
Through Printed Questionnaires.
Personal Interviews Of Authorities.
Through Customer Feedbacks.
Secondary Data Was Gathered:
From Various Books.
From Various Websites.
From Product Catalogues.

Marketing Strategies Of Bata India Ltd.

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From Company Reports.


5.

COMPILATION OF DATA:

After a hard fi eld work a lot of relevant data was


gathered. The next prime task was to systematically compile
the available data in diff erent heads. This was done with a
great care.
6.

ANALYZATION & INTERPRETATION OF DATA:

After compiling the data, it was further analyzed in order


to derive certain fi ndings and conclusions.
7.

PRESENTATION OF FINAL REPORT:

Presentation skill is very essential. The


systematically presented in the project report.

data

is

Marketing Strategies Of Bata India Ltd.

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

activities

from

Aims at satisfying human wants.


Marketing creates customer.

manufacturing

to

Marketing Strategies Of Bata India Ltd.

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

CONSUMER ORIENTED MARKETING:

Modern concept of marketing is more than the physical


activity. The modern concept is consumer oriented.
Marketing is the function of the business which is concerned
with the creation of the customers.
According to Modern Concept:
A fi rm makes continuous & organized eff orts to fi nd out
what the members of the community needs and how it can
provide maximum satisfaction.

Marketing Strategies Of Bata India Ltd.

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CLASSIFICATION OF MARKETING FUNCTION

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INDIAN CONSUMERS WALLET ALLOCATION

Fig: Courtesy:
Consumer Outlook Survey

The above mentioned chart shows the distribution of


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

INDIAN FOOTWEAR INDUSTRY: AN OVERVIEW

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India it the second


countries next to China.

among

the

footwear

producing

Footwear Production:
The total footwear production in India was estimated at
186 million pairs in 2006-07, which was at Rs 10,000 crore
in value terms in 2007, is estimated to have grown at the
rate of 11-12 per cent in 2007-08 to over Rs 11,000 crore.
Export:
Indias export of footwear touched Rs. 26,073 million in
2006-07, recording an increase of over 30% as compared to
the preceding year.

2004-05

2005-06

Source: Industry Marketing Size & Shares. Economic Intelligence Service

2006-07

Marketing Strategies Of Bata India Ltd.

COMPANY

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PROFILE

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

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Registered Offi ce:


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

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BATAS SHARE IN FOOTWEAR INDUSTRY :


Chart: 1 MARKET SHARE OF BATA INDIA LTD.

The Indian footwear industry is mainly dominated by the


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

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Bata World Today:

Serves 1
million

customers per day.


Employs more than 40,000 people.
Operates 4,600 retail stores.
Manages a retail presence in over 50 countries.
Runs 40 production facilities across 26 countries .
Bata India today:
Serves 1 Lakh customers per
Employs more than 8000
people.
Operates 950 retail stores.
Runs 5 production facilities
across India.
Bata Nasik today:
Serves 600 customers per day.
It has 7 retail stores in nasik at present.

day.

Marketing Strategies Of Bata India Ltd.

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Employs more than 25 people.

Marketing Strategies Of Bata India Ltd.

BRANCH

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PROFILE

Branch Address:
Bata Shoe Store, Suyojit Modern Point, Sharanpur Road,
Opp. Police Ground. Nashik 422002.
: 0253 2314318 : +91 9970275599
Email: shekharmanita@yahoo.co.in

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Nature Of The Branch:


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

External View

Men ( Formal shoes, Slippers, Moccasins ),


Ladies ( Party wear , Sandals, Slippers),
Children (Sports, Canvas, Slippers ).

* ACCESSORIES:
Shoe Polish, Shoe Lace, Brushes, Shoe Souls.
Sport Socks, Bags, Bottles.etc.
Iinternal View
About The Branch:
The branch commenced in 2004.
It constitutes of workforce of 3 employees.
It has an annual turnover of Rs. 60,00,000.
It has the growth rate of 15%.
It observes a daily walk in of 100-110 customers.

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

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PRODUCT VARIETY:
MENS SECTION

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

Bata
Products
Are Known
For:
*Exclusive
Style
*Consistent
Quality

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PRODUCT VARIETY:
LADIES SECTION

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

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PRODUCT VARIETY:
CHILDRENS & ACCESSORIES SECTION

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

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MARKETING SETUP OF BATA


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

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

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

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FAMILY & BAZAAR


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

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NON RETAIL
This segment caters primarily to the non exclusive
dealer outlets which market the Bata range of products.
EXPORTS:
The company operates in both the national as well as
international markets. The main focus of the company is the
domestic market but it also pays it attention to the world
market which makes it a global brand.
The share of exports in total revenue of the company
is only 2%. The company is not totally export oriented.
WHOLESALE:
This group looks after sales carried out through non
exclusive dealers across the country. The company allows
some of the dealers to stock the companys product in their
own private shops. The dealers sell the goods from their own
private retail shops. Company appoints them on the
commission basis on the volume of the sales.

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ADVERTISEMENT & PROMOTION


Introduction:
The main aim of todays business organizations is to
create a customer. The customer has a wide range of
products to choose from. The customer has to be informed
about positives of the companys product. Advertisement is
now a days an integral function of every organization. The
companys have to fi ght in the market arena hence they
continuously induce the customer to buy their product.
Companies expend a lot of their amount in
advertisement. They adopt new and innovative means to
reach the customer. In order to survive in this market
competition they put continuous eff ort in this fi eld.
Modern Trends:
In modern times, the company advertises on, T.V.
commercials, Radios, SMS, Internet. Companies advertise
their product through hoardings and boards which are placed
on the signals, buildings, on buses & trains. To reach the
individual
customer
directly
distribution
of
leafl ets,
broachers, salesmanship are commonly observed practices.
To attract customers the company organizes various sales
and introduces some interesting festival schemes.

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Footwear Advertisers:

Bata has an advertising and sales promotion department to


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

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HOARDINGS & BOARDS:


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

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

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SALES & SCHEMES:


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

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DISCOUNTS COUPONS & CONCESSIONS:


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

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DISTRIBUTION CHANNELS
Introduction:
Marketing aims at satisfying the ultimate needs of the
customers. It acts as a channel of distribution to deliver the
goods to the ultimate consumer. Dispersing function
includes Selling, Transportation, Storing, Grading, Financing,
Risk bearingetc.
Batas Distribution Channel:
Bata markets its products through 3 distinct channels .
Dealers Network:
The Company also uses the dealer network of the
footwear industry to market its products. Through this
channel, the Company supplies its products to nonexclusive wholesale distributors who in turn distribute the
Companys products to independent dealers across the
country. The dealers covered under this channel are nonexclusive Bata dealers and hence sell footwear and related
products of other companies also.
Market Extension Programme:
Under this programme, the Company appoints
authorised dealers, subject to certain selection criteria
who run outlets which exclusively market the Companys

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products and adhere to rules and regulations of the


Company. As on date, there are 470 such outlets in the
country. The dealer outlets are not manned by Bata
employees but are manned by the employees of the
private dealer.

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Company Operated Retail Outlets:


The company operates its own channel of distribution
network. It establishes is own retail outlets across the globe.
It sells its own produced products and others merchandise
products.
The

North
South
Rai Market - Ambala
Hyderabad - JNTU Amritsar Mall - Amritsar
Hyderabad
Ranjeet Avenue - Amritsar
Thillai Nagar - Tirichi
Civil Line - Agra
Trans Tower - Trivandrum
Ghaziabad - Delhi
Ameerpet Market Rani Bagh - Delhi
Hyderabad
M.G Rd Allahabad South End Circle - Banglore
Allahabad
Narayanguda - Hyderabad
Gumar Mandi - Ludhina
Palarivottam - Ernakulam
Chandanagar - Hyderabad
East
Siliguri Sevoke - Siliguri
Hill Cart Road - II - Siliguri
City Centre Salt Lake Koltata

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

company operates: 4600 retail stores across the globe. 950


retail stores across India. 8 retail stores in
Nashik.
Company is constantly increasing its retail outlets
across the nation. Some newly opened are mentioned below

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Marketing Strategies Of Bata India Ltd.

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Table: Newly Opened Centres RETAIL OUTLETS IN NASHIK:

Bata Shoe Store, College Road, Nr. BYK College Nashik 422005.

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

Bata Shoe Store, Kanchwala Apt., College Road, Opp. BYK Coll. Nashik 42

Some Other Outlets In Nasik: M.G. Road, Bhadrakali,


R.K. Nasik Road, Nr. Vishal Mega Mart

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Competition In

The Market
The footwear industry is a very competitive market.
The major share in this market is of the unorganized sector.
The Indian consumer generally prefers the non- branded
goods which comes with a reasonable quality and at much
cheaper rates as compared to the branded goods.

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At present unorganized sector holds the biggest piece of the


pie i.e. 74%, Bata holds 6%, Lakhani 1.5%, Khadims
1%.Competitor: KHADIMS

COMPETITORS
IN NASIK
footwear
retailing

With its foray in


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

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Competitor: UNORGANISED SECTOR

In the Indian Market, The biggest competitor is the


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

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Observations & Findings


After intensive fi eld work and anlaysitation, the
marketing strategies are well designed but they seem to
prove in effi cient to tackle the cut throat competition of this
footwear industry.
Here, I present some of my observations.
1)

Batas shoe designs are outdated and not as per the


current fashion statement.

2)

Due to import of inferior quality goods the product


quality has decreased over a period.

3)

The frontline sales forces have been curtailed by 70%


which aff ects the customer service. Company has
fi red 300 employees last year.

4)

The company does not expend enough much on store


renovation as required.

5)

The reach of the brand is not wide. The rural areas


are covered under the spectrum.

6)

The leaves and off days are many as compared to


other competitive fi rms.

Marketing Strategies Of Bata India Ltd.

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

Bata should carry on research to study the current


design demands. The designs can be imported from
China, Malaysia, Indonesia.

2)

The production cost of those products which are high


can be imported from other countries.

3)

The human resource should be appointed as required.


Curtailment aff ects customer satisfaction.

4)

The Bata Shoe Stores, should be renovated as per


market requirements.

5)

Instead of opening retail outlets, it should provide


agencies with good profi t margin to private
shopkeepers.

6)

Company should provide agency in rural areas to


increase their sales. Bata should enter the Malls.

7)

The outlets should operate 365 days with extended


working hours.

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

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

Marketing Strategies Of Bata India Ltd.

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Annexure Questionnaire

Name Of the Company: ________________________________________________________


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

Marketing Strategies Of Bata India Ltd.

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COLLECT
Annexure

Customers
Feedback
Certificate From Organization , Product Catalogue , Business Card , Picture .
Form
Name Of Customer: ________________________________ Product:___________________
Feedback: ___________________________________________________________________
_________________________________________________________ Sign:______________
Name Of Customer: ________________________________ Product:___________________
Feedback: ___________________________________________________________________
_________________________________________________________ Sign:______________
Name Of Customer: ________________________________ Product:___________________
Feedback: ___________________________________________________________________
_________________________________________________________ Sign:______________
Name Of Customer: ________________________________ Product:___________________
Feedback: ___________________________________________________________________
_________________________________________________________ Sign:______________
Name Of Customer: ________________________________ Product:___________________
Feedback: ___________________________________________________________________
_________________________________________________________ Sign:______________
Name Of Customer: ________________________________ Product:___________________
Feedback: ___________________________________________________________________
_________________________________________________________ Sign:______________

Marketing Strategies Of Bata India Ltd.

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

Author
P.C. Pardeshi

Edition Publications
2010
Nirali

P.C. Pardeshi

2010

Nirali

Bata Co.

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

Data Derived
Company Profile
Company Profile
Marketing Theoretical Aspect