A Shoemaker-Who Comes To

Your Mind?
A Case Study On Bata
By
Ankit-15009
Narayan-15015
Adnan-15034
Sadhana-15046
Thamburu-15058
The Present Scenario Of Footwear Market In India

• Industry is a collection of smaller, segmented and overlapping market.

• The brand image is created by extensive marketing campaigns and

celebrity endorsements.

• Major demand is met by unorganized sector.

• Penetration to the market is difficult as the brand loyalties are high.

 % of growth IN MEN'S FOOTWEAR % of growth IN WOMEN FOOTWEAR
70 45
60 40
60 40
35
50
30

40 25
25
30 20
30
20
15
20
10
10
10 7 5
5
1 5
0
0
699-999 599-799 299-699 499-799 500-699
185-700 700-1000 1000-3000 3000-5000 10000-50000
Traditional Footwear Designer Footwear Formals Casual Wear Sports Shoes
Mass Market Economy Market Sports Market Premium Market Luxury

ORGANISED VS UNORGANISED
FOORWEAR SECTOR

Organised
37%
Rs 5200 Cr

Unorganised
63%
Rs 8550 Cr
 Bata India
• Started in 1931
• Bata is the oldest brand which has half of the market shares in
executive segment.
• It is the largest retailer and leading manufacturer of footwear in India.
• Focused price sensitive segment.
• It has around 1200 retail stores and 30,000 dealers.
• The company went public in 1973 and changed its name to Bata India
ltd.
 Competitors of Bata

Name Stores
• Liberty • 350
• Khadim’s • 625
• Woodland • 350
• Adidas • 750
• Nike • 1000
• Reebok • 950-1000
 Product segmentation of Bata

• Bata Lilliput: Bubble-gummers and school shoes for kids.

• Bata Macho: Formals, casuals and sports wear for men.

• Bata Damsels: Formals, casuals shoes , sports wear for women ; tie-up
with Marie Claire.

• Bata Sandak and Bata Hawai for both men and women.
 SWOT Analysis

• Strength: Quality, moderate price, largest retailor.

• Weakness: Negative brand perception.

• Opportunities: short fall of pairs, youngsters are looking for quality,

design and brand.

• Threats: High competition, brand image.

 Trouble
• It was not sizable for a company like Bata.

• The segment did not gel with the Bata strength (serving the masses by offering value for money).

• Adoption of the high-end segment misdirected Bata’s entire strategy.

• Top end of the market became main focus and Forgot its bread and butter shoes that had given the company it’s identity.

• At the lower end, smaller competitors attacked Bata mass range.

• At the high end, niche players, who were better prepared were challenging Bata.

• 1980: 15% market share.

• 1990: 10% market share.

• 1995: loss of Rs.42 crores.

 From high end segment it returned to the mass segment
NEW STRATEGY: Get back to original customers at low end and keep that part as it’s main focus.
NEW PRODUCT: Footwear moulds and leather and tannery technology: solid waste utilization to creating a pollution-free work
environment.

“COMFORT” - using dynamic spring pad that acted as cushions on feet.

“CANTILVER SOLE” - extra padded sole.
“WIND” - Inbuilt air circulation.
“BUBBLE GUMMER” - Perfumed sole
“WIPE-n-GO” - required no polishing.
 BATA on ramp
• In 2004, improved logistics distribution and information system.

• Promotion through retail ,emphasizing on product and price point.

• Brand loyalty check, main selling theme, “CAN YOU FEEL IT”

• Flagship stores: offering fashionable products

- imported brands
- stores were air conditioned
- cozy atmosphere.
 Bata direct
• Direct distribution channels
• In 2008,Bata direct channel: providing branded footwear at the doorstep of customers.
• This supplemented 1250 Bata stores and multibrand outlets

Polishing
• In 2009: it opened 69 new stores and renovated 40.
- opened 70-100 of outlets every year
- extended working hours
- closed small store and opened large format stores at prime location.

• Its online sales are growing at 200% and website has 4 lakhs visitors since 2010.

• Plans brand licensing deals with global shoemakers to widen its portfolio.
 Ansoff’s Model
Current Products New products

Current Market Market Penetration: Product development:

Increase number of stores and improved distribution Introduced new designs- fashion oriented etc.
system R&D activities
Focus on brand building Improvement in technology, process and material
Varieties of product, increase frequency of launching development ,like improving comfort level etc.
new style of shoes

New markets Market development:

Increased number of stores across India
Targeted new segments-women and mainly
youngsters with new designs
 Questions
1. Has Bata’s effort for makeover failed? What more?

2. Is Bata right in its efforts to appeal to the “youth and the restless”?

3. Is the brand Bata preferred by the “bold and the bountiful” today? OR Is it still perceived as a brand that sells Hawaii slippers?

4. Is Bata’s pricing strategy fitting well with its brand image & positioning?

5. Which segments should it focus and why?

THANK YOU !