Company profile

Date of Establishment 1931

Revenue 0 ( USD in Millions )

Market Cap
Corporate Address
Management Details
Business Operation
Background
53740.5776625 ( Rs. in Millions )
6 A,S N Banerjee Road, Kolkata-700013, West
Bengal
www.bata.in
Chairperson - P M Sinha 
MD - Rajeev Gopalakrishnan
Directors - A B Anand, A Chudasama, A Singh, AB
Anand, F M Hussein, J Carbajal, J G N Clemons,
Jack G N Clemons, M K Sharma, M Villagran,
Mahendra Ganatra, N Sankar, P M Sinha, R
Gopalakrishnan, Rajeev Gopalakrishnan, Ranjit
Mathur, S Sinha, U Khanna, Uday Khanna
Leather
Bata India is a footwear manufacturing company
incorporated in 1931. The company was earlier
known as Bata Shoe Company, later in 1973 the
name was changed to the present one.

The company manufactures footwear for men,

women and children. The Company manufactures
shoes of various quality such as leather, rubber,
canva
Financials Total Income - Rs. 16775.529 Million ( year ending
Dec 2011) 
Net Profit - Rs. Million ( year ending Dec 2011)
Company Secretary AB Anand
Bankers HDFC Bank, State Bank of India
Auditors SR Batliboi & Co

Finished Products
SALES
PRODUCT INSTALLED PRODUCTION SALES
UNITS VALUE
NAME CAPACITY QUANTITY QUANTITY
(Rs Cr.)
Thousands
Leather Footwear 20256.00 13564.00 24551.00 1089.0688
Pairs
Rubber / Canvas Thousands
42500.00 6645.00 16162.00 300.7620
Footwear Pairs
 Plastic Footwear N.A. 0.00 0.00 8074.00 111.7068
Accessories,
Garment & N.A. 0.00 0.00 0.00 61.8937
Others
Scrap N.A. 0.00 0.00 0.00 1.1419
Other Fiscal
N.A. 0.00 0.00 0.00 0.4568
Benefits
Other Services N.A. 0.00 0.00 0.00 0.0475
Finished Leather Thousands
1596.00 110.00 0.00 0.0000
From Hides Pieces

Bata India Limited — Document Transcript

 1. BATA INDIA LIMITED Repositioned Or Still a Foot

wearyPresented by- Yugesh Kumar dubey (8279) Vinay Singh
(8272) Vinay gupta (8271) External environmentWe have analyze
various external environments from case as well as from outside
source-Industry environment- Threat of new entrants-There are
many barriers to entry preventing new entrants from capturing
significant market share. Large footwear producer enjoy economy of
scale that create cost advantage over any new rival.BIL
differentiated it’s product from rivals product like Comfort (using
dynamic spring pad that acted as cushion on the feet for women’s
footwear), Wind (in build air technology that allowed feet to breath
fresh air) etc.The capital requirements are a high entry barrier to a
new firm to the industry. However, an existing shoe manufacturer
may enter the athletic shoe industry simply by re-tooling their
manufacturing plant.Switching cost is very low for footwear industry
because shoes are relatively inexpensive personal goods that are
frequently replaced.Access to distribution channel is barrier to entry
because it is really difficult for a startup firm to get shelf space at
major shoe retailer. But existing firm may use their existing
connections to easily access shoe distribution channel.Bargaining
power of buyer-Bata was largest player in industry with 9-
10%volume share and 60% market share in organized segment. It
had a market share of 70% in canvas shoe segment and 60% in
leather shoe segment. Their dominant market share give them power
over buyer.Bata is a big buyer of raw material who buys significant
part of suppliers’ revenue. This in a way provides good bargaining
power over suppliers.As a part of its strategic decision Bata set up a
rubber/canvas factory in Faridabad, Haryana in 1951. So it can
threaten it’s supplier to integrate backward.Bargaining power of
supplier-Shoes are made of leather, rubber, nylon etc. These
materials could be classified as commodities, where the
manufacturing process adds the value. For this reason supplier have
limited bargaining power over buyers.Threat of substitute product-
Consumer switched from one product to another if alternatives are
available in same quality and performance range and have competing
price or lesser price.BIL produces 10% of total hawai ranged from
Rs. 35-110 while competing local brands were selling at Rs. 25-
50.Again when global trade open then market flooded with many
international brands having variety and competing price.Rivalry
among existing firms-Mostly numbers of competitors are stable,
especially because of high entry barriers. This adds to the rivalry
among existing firm. Manufacturers watch each other carefully and
make appropriate countermove to match the competitors move.
Leading competitor of BIL are Lakhani shoes, liberty shoes, action
shoes, woodland, paragon and relaxo in organized segment.
CompanyYear endedSales (Rs. Cr.)EPS(Rs.)Bata IndiaDec
2004698.512.2Lakhani IndiaMar 2004109.61.6Liberty shoesMar
2004177.215.9Mirza tannersMar 2004174.69.9Relaxo footwearsMar
2004200.74.4Source- capital market dated April 25-may 8
2005General environment-Demographic- Indian market is highly
fragmented between rural and urban market. Rural market was large
at approximately 70% of the total market but was dominated by
multiple medium size regional players and serviced through
traditional independent dealers.Political/legal environment-Industry
is governed by central by Central Excise and Custom, Factory act
and Labor Law and Environmental control acts.Council for leather
export, Central leather research institute and Footwear design and
development institute were promoting industry for special
purpose.Political unrest, cross border unrest, terrorism in and out of
India has direct or indirect impact on industry. When quantitative
restriction was lifted from import then industry slowed down from
20 % (in 90’s) to 8-10 %( in 2004). Increase in excise duty led to
increase in cost of footwear (1993-94, excise exemption was
withdrawn from shoe costing below rs. 200 and hence price went up
by 20% and this led to drop in profit from 20 crore to 95 lac within a
year).Tax holidays for period of 10 years on full excise duty and
income tax and a subsidy on sales tax, land/building and
plant/machinery was given by state government of Himachal
Pradesh, Uttaranchal, Jammu & Kashmir and Assam to promote
manufacturing. Global environment- India produced more of gent’s
footwear while world’s major production was ladies footwear. India
has 10% of world’s raw material and low tanning cost made it
second in footwear production after China. Sociocultural-Over a
period of time, as disposable income increases, consumer preference
changed but Bata failed to recognize these social changes and they
continue with same product over long period of time.Internal
environmentBIL is India’s largest manufacturer and marketer of
footwear product which sold over 60 million pair per year in India
and overseas market. Here in this section we will analyze resources,
capability, core competencies and value chain of Bata India limited.
By doing internal analysis we will identify strength and weakness of
Bata India limited. Resources-Human resource-Footwear industry is
labor intensive and concentrated in small and cottage industry area.
Availability of human resource is one of important strength of Bata
India limited. Below table will tell why this is strength-Labor cost in
leading footwear producing 

Brand Description:
Brand Description Bata is one of the world leading footwear retailer and manufacturer
with operations across 5 continents managed by 4 regional meaningful business units.
With 1250 stores across the country, it also has the widest retail network.. Bata, over
the decades, used the ‘ current knowledge ‘.

Brand History:
Brand History Bata Shoe Company is registered in Zlin . Innovative from the beginning it
departs from century old traditions of the one-man cobblers’ workshop. The company
was set up in Konnagar (near Calcutta) in 1932 which is known as Batanagar . It was
also the first manufacturing facility in the Indian shoe industry to receive the ISO: 9001
certification. It operates 63 companies in various industries but footwear remains the
core business with 60 million pairs sold per year in more than 30 countries.

Bata: Improving Market Share:

Bata: Improving Market Share Bata today… Serves 1 million customers per day
Employs more than 40,000 people Operates 5000 retail stores Manages a retail
presence in over 50 countries Runs 40 production facilities across 26 countries
BRANDS UNDER BATA 3 CATAGORIES :
BRANDS UNDER BATA 3 CATAGORIES MEN WOMEN KIDS AMBASSADOR
Rs.599-Rs5499 •BATA Rs.599-Rs5499 •COMFIT Rs.749-Rs2299 •HUSH PUPPIES
Rs.1699-Rs3299 •MOCASSINO Rs.999-Rs1599 •NORTH STAR Rs.629-Rs1699
•POWER STAR Rs.699-Rs1599 •QUOVADIS •SCHOLL’S Rs.1799-Rs2899
•WEINBRENNER Rs.699-Rs2099 •BATA Rs.539-Rs4899 •HUSH PUPPIES Rs.539-
Rs4899 •COMFIT Rs.599-Rs1299 •MARIE CLAIR •NORTH STAR Rs.539-Rs699
•POWER Rs.1699 • SCHOLL’S Rs.1249-Rs1499 NAUTRALIZER RS.2999-RS3299 •
BUBBLEGUMMERS Rs.549-Rs649 •BATA Rs.149-Rs899 •SCHOOL Rs.149-Rs899
•SPARX Rs749

The Product Life Cycle:

The Product Life Cycle HUSH PUPPIES DR. SCHOLL WINBRENNER, NORTH
STAR,BATA COMFIT, MARIE CLAIRE, BUBBLEGUMMERS POWER HAWAI (Sau
paolo Alparagatas)

Marketing channels of :
Marketing channels of Company operated retail outlet Dealer network Direct marketing
to the customers

SWOT analysis:
SWOT analysis Strength Worldwide presence Offers customer best value and great
possible service Manages retail presence in 50 countries High demand in foreign
market

Weakness:
Weakness Losing competition because of the other big players like adidas, nike,
woodland etc. Not too much stylist so it is losing the attraction of the customer, specially
in the youth segment. They don’t have any powerful brand ambassador to promote their
brand. They haven’t promoted themselves thoroughly, invested very less in their add
campaign.
Opportunity:
Opportunity Bata India Limited has undertaken initiatives to improve the company's cost
structure and margins. The company has initiated a financial restructuring exercise to
down its interest cost. Financial re-engineering. The company has tightened controls on
costs in all areas of and is looking at global sourcing for raw materials and other inputs.
Bata India is also exploring third-party manufacturing units in Assam and Jammu &
Kashmir as these enjoy tax holidays. Bata Shoe Organization (BSO) has decided to
give a breather to its 51 per cent subsidiary.

Threat:
Threat Introduction of new brands in the market. Lagging behind in terms of
technological factors. Young generation is attracted to the other branded shoes like
adidas, nike, woodland etc.

MENS TYPE:
MENS TYPE DERBY LACE –TO-TOE LOFER

Slide 13:
LOW-BOOT MOCCASIN MONK-STRAP OXFORD

WOMENS TYPE:
WOMENS TYPE ANKLE-BAR BALLERINA CHAPPLIES-MULE ESPADRILLE

Slide 15:
HIGH-BOOT INSTEP-BAR PUMP SANDAL

Slide 16:
SLING-BACK T-BAR

Introduction of Bata India Limited: 

Introduction of Bata India Limited Bata India, a part of Bata Group Switzerland.
Incorporated as Bata Shoe Company Limited on December 23, 1931 Kolkata, West
Bengal. Changed its name to Bata Shoe Company Private Limited on April 6, 1956.
Converted to a public sector company on April 18, 1973. The name was subsequently
changed to Bata India Limited on April 23, 1973. ‘THE MOST TRUSTED FOOTWEAR
BRAND’

Bata Today: 
Bata Today Sells over 45 million pairs every year. Serves over 1,20,000 customers
every day. Sells through over 1,200 retail stores. Operates 5 manufacturing facilities.
Employs more than 6,800 people.

Average Footfalls: 
Average Footfalls Weekdays : 40 – 50 Weekends : 60 - 70

Visitors into Customers: 

Visitors into Customers

Marketing Strategies: 
Marketing Strategies

Bata Marketing Mix: 

Bata Marketing Mix

Strengths and Weakness: 

Strength Weakness Strong financial position. High goodwill. Different training facilities.
Large no. of outlets. Serves family packages. Less variety. No proper advertisement. No
powerful brand ambassador. Unrelated diversification. Strengths and Weakness

Opportunities and Threats: 

Opportunities Threats New medium to advertise. New product line. Be updated with
new fashion & trend. Competition. Fast changing fashion trends. Opportunities and
Threats
Major Problems of Bata India Limited: 
Major Problems of Bata India Limited Problem in switching to new product line.
Unrelated diversification. Less variety of products as compared to others. Follows
contemporary look. Doesn’t follow trend.

Mission:

to acheive success and become the biggest n most successful multiple

retaling n distirbution organisation with a dynamic n flexible market
approach

“Today’s consumer has multiple footwear needs for specific purposes, like dress, sports,
outdoor, comfort, party, sports casual etc. Our updated and improvised shoe line is now
better segmented to adapt to the ever changing needs of the consumers

competitors

BATIND
Bata India Ltd.
Bhartiya International Ltd. BHAINL

Crew B.O.S Products Ltd. CREBO

Dharnidhar Global & SEAGLO

Infraprojects Ltd.
Euro Leder Fashions Ltd. EURLED

KRM International Ltd. KRMINT

Lawreshwar Polymers Ltd. LAWPOL

Liberty Shoes Ltd. LIBSHO

Mayur Leather Products Ltd. MAYLEA

Mirza International Ltd. MIRINT

Montari Leather Ltd. MONLEA

N B Footwear Ltd. NBFOOL

Oscar Global Ltd. OSCGLO

Phoenix International Ltd. PHOINT

 Presidency Shoe PRESHO
International Ltd.
Pretto Leather Industries Ltd. PRELEA

Ramco Super Leathers Ltd. RAMSUP

Relaxo Footwears Ltd. RELFOO

Sarup Tanneries Ltd. SARTAN

Somplast Leather Industries SOMLEA

Ltd.
Super Tannery Ltd. SUPTAN

Superhouse Ltd. SUPLTD

Tinna Overseas Ltd. TINOVE

Unimode Overseas Ltd. UNIOVE

Welterman International Ltd. WELINT

Worldwide Leather Export WORLEA

Ltd.

VISION:Togrowasdynamic,innovativeandmarketdrivenmanufacturerand
distributor,withfootwearindustrywhilemaintainingacommitmenttothecou
ntry,culture,andenvironmentinwhichthecompanyoperates.
MISSION:Tobesuccessfulasthemostdynamic,flexibleandmarketresponsi
veorganization,withfootwearasitscorebusiness.

OBJECTIVES:BataIndia,today,wishestorepositionitselfasamarketdrive
n,fashionconsciouslifestylebrand.Cateringtoawidevarietyofcustomergrou
ps,Batawillprovideitsproductsandservicestoalltheagegroupsinthecommun
ity.Alsoaimstoprovidethefinestqualitythroughcustomerinvolvemen
BATA:SWOTANALYSIS
Strengths
1.BrandImage
2.Reasonablequalityatloworreasonableprice
3.Diversitywithrangesinrunning,training,court,basketball,footballandOut
door
4.Footwearfortheentirefamily
5.FinanciallyStrong
6.Convenientlyaccessibleoutletsinvariouspartsofthecountry
7.Targetingallincomesegments
8.Providetrainingformanagersandemployees
9.Nationwideretailnetwork
Weaknesses
1.Nocontinuityofleadership
2.In2001,5%decreaseinnetsalesduetodiversificationintopremiersegment(i
mpropertargetingandpositioning)
3.NoproperplanningregardingAdvertisementandPromotions
4.NovarietyinFashionableshoe
Opportunities
1.Ecommerce
2.Acquired,Partnershipwithsmallplayers
3.EnteringnewsegmentsofMarkets
4.CapturingMarketwherenootherpotentialcompetitorexists
5.InnovativeProducts
6.Newmediumsforadvertisements.
Threats
1.CustomerDissatisfaction
2.Pricewarswithcompetitors
3.Competitors
4.PoliticalInstability
5.EconomicThrea
t6.Changinginconsumerpreference

Bata:TheMarketingPlan&Communication
Themarketingplanincludesformulatingstrategiesandtacticsforeachofthe4
Ps:PRODUCT:BATAIndiahasmanybrandsunderitsoriginalbrandname
BATA.Butweareconsideringdevelopingapromotionalcampaignonlyforth
eproductcategoryof“casualfootwear”whichsellsbytheoriginalbrandname“
BATA”.
PRICE:BATAIndiaiscurrentlyconcentratingonthemiddleincomelevelseg
mentforitsproductcategoryofcasualfootwear,thusthepricewouldberanging
fromINR300to1500.
PLACE(DISTRIBUTION):BATA’Sretailnetworkofover1200storesgives
itareach/coveragethatnootherfootwearcompanycanmatch.
PROMOTION:Thiswouldincludeintegrationofvariousmarketingtechniqu
eslikeSalespromotion,ConsumerPromotions(GiftCoupons),TradePromoti
ons(Count-RecountAllowances),Advertising,In-
storeAdvertisingforgeneralshoeretailstores,andPublicRelations.Theseco
mmunicationtoolsareusedinawaysuchthattheycomplementeachotherinthe
communicationandpersuasionprocess.Takingintoconsideration,thepromo
tionalelementsinbrief:-
SALESPROMOTION:SalesPromotionareoftwobroadtypes:1.ConsumerP
romotions2.TradePromotionsConsumerPromotions:Thetoolalreadyinuse
bytheBataIndiagroupis“BataGiftVouchers”.Thedesigningofthevouchersn
eedtobecomplementarytothethemeusedforadvertisingsoastoreinforcethei
mageofthebrand.Thesegiftvouchershavethefollowingfeatures:Convenient
denominations6monthsvalidityRedeemableonallBataproductsAcceptable
atover800BatastoresacrossIndia

TradePromotions:ThepersuasiontoolusedherecanbeCount-
RecountAllowance.Underthis,thediscountisappliednottothequantitythatth
eretailerbuysfromthemanufacturerduringthepromotionalperiod,butonlyto
thatquantitythatismovedfromtheretailer’sstores.Asaconsequence,theretail
ergetsgreaterincentivetopassthepricecutontotheconsumersothattheproduc
t“moves”fromthestoreintotheconsumers’hands.Thistoolcanbeverybenefic
ialforabrandlikeBatawhereconsumersareverybrandconsciousandhavehig
hbargainingpower.
MESSAGESTRATEGYATTENTIONANDCOMPREHENSION
Theattentionandinvolvementoftheaudiencedependsuponability,motivatio
nandopportunity.ABILITYApersonismoreattentivetowardssomethingthe
y’reabletounderstand.Whattheadvertsays,thewaythespokespersontalksab
outthebenefits/features,thelanguageusedisallveryimportantalongwiththef
actwhetherthemessageiscomprehendibleornot.
MOTIVATION
Isthepersoninterestedenough?
ApersonmaybeinterestedinaspecificproductcategoryApersonmaybekeena
boutaparticularwayofsendingacrossthemessage(languageused,humorused
,jingles,etc.)ormediaused(newspapers).Canamessagebedesignedthatenco
uragesmaximumnumberofpeopletogetinvolved?
EgoInvolvement:Imagethatthepeoplecarryofthemselves.Connectionbetw
eentheegoofthebuyerandtheproduct(brand).Istheproductsomethingthatwo
uldenhancetheirpersonality?
OPPORTUNITYIstheinformationreadilyaccessible?
Doretailershaveenoughinfotobepassedontotheultimatecustomers?
Docustomersneedtosearchforinformation?
(insuchcases,competitorsareatadvantage)Istheadvertvisibleasmuchasrequ
ired?
COGNITIVERESPONSEAspectsthatbuildCognitiveResponse:SupportA
rgument:TheCompanyagreeswithwhatevertheconsumerwantstobelieve.C
ounterArgument:TheCompanyclaimssomethingthatisusuallyunbelievabl
e,i.e.audiencerejectswhattheadverttriestosay.ExecutionBolstering:Whent
heasisperceivedverypositivelyandtheaudiencelikethepresentation(colors,
charactersused,décor,jingle)ExecutionDerogation:Whenthefeeloftheadve
rtisnotverygood.Audiencedoesn’tlikethewaytheadispresented
BATA’sMarketPositioningPlans[Assumptions]Bataisplanningtoexitfro
mthelowerendsegmentandfocusmoreonthemiddleanduppermiddleclassof
thesociety,becauseofgrowthinthenumberofpeoplebelongingtothesesegme
ntsandtherisingincomelevelofitstargetcustomers.Theoverallmarketquite
qualityconsciousnow.Bata,inordertodealwiththethreatoftheChineseimpor
ts,wouldhaveastrategyfocusingprimarilyoncustomerintimacyasitwouldbe
aimingtoenhanceitsbrandequitybyprovidingacompleteexperienceforfamil
ieswhocometoshopatitsretailoutlets.AnotherpositiveforBatawillbethatth
ecustomers,whoaremoreawarenow,usuallydonotassociatequalityandrelia
bilitywithChineseproducts,whereasBatacanuseitsbrandtofillthisvoid.Al
sorecentlyBatahasrecentlyrolledoutthe‘veryhighqualityandpremium’prod
uctsthatwereintroducedunderitsBatabrandin2001,becauseofthefactthatBa
ta’simagehasbeencreatedoveritsexistenceofaround40oddyearsandtryingt
ojustmoveoutofitscurrentsegmentofthemiddleanduppermiddleclasspeopl
eandtryingtocapturethehigherendofthemarketovernightcanbeanuphilltask
forBatatosaytheleast