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Report on Bata in India

Extracts from this document...


´╗┐Section S5Group 9 PROJECT REPORT ON ________________ ________________ ________________ Table of Contents FOOTWEAR SEGMENT IN INDIA Customer Segments BACKGROUND OF BATA INDIA Timeline of Bata India: MARKETING MIX OF BATA INDIA Product Mix: Bata Accessories: Marketing Channels: Retail Business Enterprise resource planning in Bata Non Retail Business Bata.in Bata Pricing Strategy Bata Promotion Strategy: BATA OPERATIONS AND LOGISTICS LOGISTICS PRODUCT PLANNING SYSTEM QUALITY SYSTEM SUPPLY CHAIN MANAGEMENT Bata- Growth Trends Other positive Developments Risks & Concerns Consumer Survey Demographics Purchasing Behaviour Frequency of purchase Preferred point /location of purchase Attitude towards Online purchase Parameters important to purchase decision Brand Recall Consumer?s Attitude towards Bata Perceptual Map References Appendix A ________________ FOOTWEAR SEGMENT IN INDIA The domestic footwear market is estimated to be more than Rs.15, 000 crores and is expected to reach Rs. 20,000 crores by 2015 .The average growth in the industry has been estimated at 12 percent and is estimated to touch Rs 47,000 crore by 2025..The category covers casual, formal, semi-formal and sports shoes along with sandals for men and women. Men?s segment accounts for 59 per cent of the market, while women?s segment contributes 41 per cent. The domestic market is substantially price driven, with branded footwear constituting less than 42 percent of the total market size. About 37.8 percent of Footwear retail is the organized segment and is expected to reach 25-30 per cent by 2015. This qualifies it as the second most organized retail category in India, next only to Watches. Exclusive-brand outlets account for over 50 per cent of the footwear market followed by multi-brand outlets at 28 per cent. The preference for branded products is on the rise with a growing consumer preference to shop from organised retail locations like malls/large format stores. While the average spend on the footwear by urban consumers is Rs 240/annum, consumers in rural areas spend just about Rs 100/annum. ...read more.


BIL?s most modern leather shoe Factory is located in Hosur (Tamilnadu) and is geared to make 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. Institutional Sales: Bata Institutional Sales Division is an exclusive division of Bata India which caters to the requirements of corporate customers across the country. The Institutional Sales Team customizes footwear solutions to meet the requirements of various industries ? hospitality, aviation, healthcare, educational and government organizations. The Bata Institutional team collaborates with corporate customers to design exclusive shoe lines under the various international and national brands - HUSH PUPPIES, MARIE CLAIRE, MOCASSINO, AMBASSADOR, COMFIT, SCHOLL, QUOVADIS, NORTH STAR, POWER, which are in line with latest technology and industry specific, to meet the requirement of the customer. In addition, it provides excellent quality canvas shoes, hunter shoes, miner?s shoes etc. to meet specific requirement of army, police forces and mining industry. Bata India provides 1. Great quality shoes at great prices 2. Customized Shoe Solutions for every industry 3. Latest technology to provide comfort and hygiene Hospitality Industry ? Each work place is different, as are the needs of the working people. Bata offers shoes with climate management technology with breathable genuine leather upper & linings along with unique foot bed insole which not only offers comfort but fresh feel to the wearers for those standing for long hours. Corporate & government organizations ? Bata Institutional Sales Division consults and advises corporate customers on footwear requirements of various industries Bata India provides Customized Shoe Solutions ? we also advise and guide corporate staff to use the correct shoes as per the job descriptions. Schools ? Parents as well as schools trust Bata when it comes to school shoes, all over the country. ...read more.


Now, we have a look the question that inquires about first value/characteristic that comes to mind of consumer that they associate with Bata. Again, Value for Money comes out on top with 66% respondents responding in its favour. We can probably say that Bata has a stronghold as well as a correct positioning if we consider Price-Value customers. We think Bata should focus on this segment and make it more lucrative by increasing effective ATL communication activities in order to change customer perception about width of its product mix. Perceptual Map We have developed a perceptual map for footwear industry to understand Bata?s positioning in consumer?s mind vis. a vis. other brands. We chose the following brands to develop the perceptual map: 1. Adidas 2. Nike 3. Bata 4. Liberty 5. Woodland In order to build the perceptual map we gathered preference data on the above brands on following parameters: 1. Value for money 2. Quality 3. Brand Value 4. Design 5. Variety 6. Buying preference. Preference data for mentioned brands on above parameters was collected on rating over a 5 point Likert Scale. Aggregate ratings were obtained for every brand under each parameter. A summary of this is given in the table below. Adidas Nike Bata Liberty Woodland Value for Money 0.5 0.515625 0.734375 0.46875 0.390625 Quality 1.015625 0.921875 0.859375 0.40625 1.015625 Brand Value 1.0625 0.859375 0.5 0.234375 0.9375 Design 1.078125 0.875 0.1875 0.265625 0.640625 Variety 0.90625 0.796875 0.40625 0.453125 0.78125 Buying Preference 0.8125 0.796875 0.4375 -0.20313 0.34375 We have already determined that Value for Money and Design are top two parameters while making a purchase for our respondents. So we created perceptual map by taking ?Value for Money? and ?Design? as axis. Resultant perceptual map is shown below. As it can be observed, Bata is highest on ?Value for Money? but is last in ?Design?. Table with aggregate preference data shows that Bata lacks in ?Variety? as well, in spite of showcasing wide product mix. Bata has been trying to revamp it old perception of being a leather shoe brand, but these efforts doesn?t seem to be having a great effect. ...read more.

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