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BATA INDIA LIMITED

INTRODUCTION
Bata is a family-owned global footwear and
fashion accessory manufacturer and retailer
Headquarters located in Lausanne, Switzerland.
Organised into three 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.

Retail presence in over 70 countries


Production facilities in 26 countries.

INDIAN FOOTWEAR INDUSTRY


India ranked second among the footwear
producing countries next to China.
Labour intensive.
India produces more of gents footwear while the
worlds major production is in ladies footwear.
In the case of sandals and chappals, use of nonleather material is prevalent in the domestic
market.
The major production centers in India are

Chennai,

Ranipet, Ambur in Tamil Nadu


Mumbai in Maharashtra
Kanpur, Jalandhar, Agra and Delhi in the North

EARLY HISTORY
The company was founded in 1894 in Zln (Czech
Republic) by Tomas Bata whose family had been
cobblers for generations.
Large order from the army, military shoes and
rising demand for them, during World War I
started rapid growth.
Small manufacturing unit turned into modern
industrial concern, one of the first mass
producers of shoes.

A JOURNEY FROM

To

FOUNDER : TOMAS BATA


Tomas Bata was recognized for his social conscience,
establishing housing, cinemas and advancement
programs for his employees.
He saw technology as a means of progress, and wanted
to make the shoes as cheaply as possible so that the
greatest number of people could access them.
He employed 16,560 people, maintained 1,645 shops
and 25 enterprises.
The total international contribution to the Bata
organization at the time of Tomas' death consisted of
20 international enterprises,
132 shops, and
790 employees.

SUCCESSOR : JAN ANTONIN BATA


After Tom Baa's plane crash his half-brother
Jan Antonn Baa becomes head of the company
at this time the company continues the
diversification into the production of tires,
aircraft, bicycles, machineries.
Under Jan Antonn Baa the company grew
quickly, continued its expansion throughout
Europe, North America, Asia, and North Africa.

AFTER WORLD WAR-II


After the Second World War the Bata Shoe
Organization was led by Thomas J. Bata (Tom
Baa Junior), son of Tom Baa
the company grew significantly under Thomas J.
Bata's driving leadership.
In 2002 the headquarters was moved to
Lausanne Switzerland
the Organization has now been led by Thomas G.
Bata, grandson of Tom Baa.

KEY DATES
1894: The Bata family establishes a company in Zlin,
located in what is now the Czech Republic.
1931: The Company was incorporated in India.
1932: Founder Tomas Bata dies in an airplane accident.
1939: The Company relocates to Canada after the
movement of German military forces into Eastern Europe.
1945: Czechoslovakia business operations are nationalized
by the new communist government following World War II.
1991: Bata returns to the Czech Republic following fall of
the communist regime.
1994: Thomas J. Bata, the son of the company's founder,
retires.
2001: Thomas J. Bata, Jr., becomes chairman and CEO.

MILESTONES
Timeline

Milestone / Event
-EntersintoretailingalliancewithLeeCooper

2003-2009 -UnveilsnewflagshipstoreinMumbai
-SetsupnewflagshipstoreinThiruvananthpuram
-Installsinjectionmouldedplant
-SetsupexportorientedunitatHosurinTamilNadu
1990-1999 -Ties-upwithNikeformarketingthelattersproductsthroughits
retailoutlet
-LaunchesnewladiesrangeSundrop
-Goespublic,listedsharesonBSEandNSE
-EntersintoagreementwithAdidasformanufactureandmarketing
ofsportsgoodsandsportswearinIndia
1973-1988 -Launchesmarketingof`Star'clothingsdesignedbyMurjani
International,NewYork,U.S.A.andsourcedthroughInmark
BrandsPvt.Ltd.
-IntroducesanewbrandTigre
-Setsupmachinerydepartmenttomanufactureshoemaking
machine
1942-1952

-SetsupfactoryinPatna,Bihar
-SetsupfactoryinFaridabad

1931-1937

-IncorporatedatKolkata
-TanningintroducedatthenewfactoryatBatanagarinKolkata

10

SHARE HOLDING PATTERN


Foreign Corporate Bodies
Public Shareholders (Institutions)
Public Shareholders (Individuals)

52.958%
29.961%
17.081%

11

MISSION
To provide its products and
services to all the age
groups in the community
while maintaining the finest
quality through customer
involvement.

12

VISION
To ignite spark that can
inspire and energize
people to do better.
The focus of vision is to
reach out hungrily for
the future and drag it

13

VALUES OF BATA
Constant innovation in design and product
development
Superior customer service
Excellence in operational and commercial
execution
Entrepreneurial spirit and passion to win
Teamwork in international environment
Trust and respect for our employees
Adding value to the community
Delivering on our commitment to shareholders

14

PRODUCTS
Leather Footwear
Rubber / Canvas Footwear
Plastic Footwear
Accessories, Garment & Others
Bags and Luggages
Belts

15

BRANDS
Bata
Bata Comfit (comfort shoes)
Ambassador (classic men's shoes)
North Star (urban Shoes)
Weinbrenner (premium outdoor shoes)
Marie Claire (women's shoes)
SunDrops (women's shoes)
Bubblegummers (children's shoes)

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BRANDS (CONT.)
Baby Bubbles (children's shoes)
Safari (desert shoes)
Power (athletic shoes)
Patapata (flip flops)
Toughees (school shoes)
Verlon (school shoes)
Teener (school shoes)
Bata Industrials (work & safety footwear)

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CUSTOMER SERVICE
o

Wide product assortment

Personalized service

Clear product merchandising

Guaranteed customer satisfaction

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CUSTOMER SERVICE

19

BATA INDIA LIMITED


Sells approx. 50 Million pairs of footwear every
year
Sells through more than 1400 retail stores
Operates 5 manufacturing facilities
Employees more than 7000 people.

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ORGANISATION STRUCTURE
Employees of the Company are categorized along the following
grades, in descending hierarchical order:
1) Directors
2) Senior Managers (Senior Vice President, Vice President,
General Manager)
3) Middle Managers
4) Junior Managers
5) Selling personnel
6) Shop Managers
7) Shop Employees

) Additionally,

the Company employs direct and indirect workmen


on its factory sites.
) The number of permanent employees currently on the payroll of
the Company are around 7000 as on 31 st March 2014.

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PLANTS & LOCATIONS


1)
2)
3)
4)
5)

Batanagar , West bengal


Bataganj , Bihar
Faridabad , Hariyana
Peenya , Karnataka
Hosur , Tamil Nadu

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ADVERTISING STRATEGY
1)
2)
3)
4)
5)

Tag-lines
Print Ads
TV-Ads
Road Side Advertising
Celebrity Endorser

23

SALES PROMOTION
1)
2)
3)
4)
5)

Price Promotion
Discounts
Stock Clearance Sale
Gift With Purchase
99 Magic Formula

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SUBSIDIARIES
Bata Properties Ltd.
Incorporated on August 14, 1987
To carry on the business as dealers, owners and investors in
land and building.
Engaged in the business of development, improving, and
effectively utilizing the properties of Bata in a planned
manner
To acquire further properties for development of retail
business of Bata throughout India.

Coastal Commercial & Exim Ltd.


Incorporated as on October 11, 1991.
To carry on business as Exporters, Importers, buyers,
traders, suppliers, and merchants.

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FINANCIAL REVIEW

26

MEASURES OF PERFORMANCE

27

MEASURES OF FINANCIAL STATUS

28

ANALYSIS USING 4 PS

Product:
Bata

sells all the range of footwear from shoes, canvas,


belly, leather shoes, sandals, school shoes, flipflops etc.

Price:
The

pricing of bata has been very nominal and user


friendly for the customer which bata targeted.

Place:

Bata

is located in all the prime areas of the city and also


exists in almost all the cities of india. People look for
bata as A reliable place for their footwear requirements.

Promotion:
Bata

mainly promotes by providing sale in their


existing product lines.

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SWOT ANALYSIS

Strengths

Largest footwear retailer in India.


Largest market share in the organized footwear
segment.
Strong Brand Image.

Weaknesses

ROE decreased over the last one year due to a


threefold increase in tax outgo.

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SWOT ANALYSIS (CONT.)

Opportunities

The nation's consumption of leather products is


expected to grow at around 10% per annum
The unorganized segment constitutes 80% of this
market, indicating a significant marketing
opportunity for organized players.

Threats

Increased competition from leading multinational


players in the sports segment.
Threat from non-specialist' retailers like apparel
retailers diversifying into footwear and discount
hypermarkets and retailers introducing and
promoting their own brands at competitive prices.

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STRATEGIES ADOPTED TO
COMPETE
Reasonable quality at low or reasonable price.
Footwear for the entire family.
Footwear catering to various functional needs e.g.
sports, casual footwear, formal-semi formal.
Conveniently accessible outlets in various parts
of the country.

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CSR INITIATIVES
Saving the Ganga is a project that has made a
significant contribution in this direction.
Bata at a considerable cost has ensured that the
effluents from the tanneries are treated in a stateof-the-art effluent treatment plants so that they do
not pollute the river at Batanagar and
Mokamehghat.
Joined hands with World Wide Fund (WWF) to
protect the natural environment and its wildlife.
Planting of trees is routinely carried out at all Bata
Units.
The factory at Bangalore was considered the best
maintained garden in Peenya Industrial Area.

33

FUTURE PLANS
Bata India Ltd plans to add around 60 stores every year.
Trying to reach out to the rural market through their dealer
network .
The major improvement in the shoe line by introducing
shoes with some additional features to target more
premium distribution channels .
Restructured of wholesale division into four independent
distribution channels
urban, safety, institutional and branding each with its own
sales teams to create more impact and result in better sales.
Bata has also invested in building its technology backbone
and systems

34

COMMENTS

Over a period of time Bata has

Improved its distribution network,


Generated skilled manpower,
Integrated itself backward as well as forward,
Resolved problem with trade unions,
Lower down the input cost,
Created good physical infrastructure and
technological advancements.

It is continuously increasing its distribution


network and cutting cost through manpower
reduction.
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COMMENTS (CONT.)
Now, Bata has no more considered as only a
production company which produces footwear.
They have now created an image of fashion
driving, market oriented manufacturer.
Such reositioning has been done in very
passionate way to change a stable image of
company over a period of time.
They back their campaign through several TVCs,
print media and word of mouth. Collaboration
with several big players is giving an edge to Bata
India Limited.

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REFERENCES

5)

Bata A Company Survey , Rakesh Gakare ,


Praxis Business School , 2011
Bata India Annual Report 2013-14
Company Analysis of Bata ,Suraj KR Satpathy ,
Regional College of Management , 2013
Bata Repositioned , V.K.Dubey ,V.Singh,
Kohinoor Business School, 2013
www.bata.in

6)

www.bata.com

1)
2)
3)
4)

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THANK YOU

Hard to
Resist