Professional Documents
Culture Documents
Bata
Bata
Bata
Bata is the world's leading shoemaker by volume, designing stylish and comfortable footwear at
affordable prices. Bata is a family-owned business serving more than 1 million consumers a day
in our 5,300 stores and producing locally in 23 Bata-owned manufacturing facilities across five
continents. It was founded by Tomas Bata in 1894,125 years ago in Czech Republic. It is a
privately owned global shoe manufacturer and retailer headquartered in Ontario, Canada. Today
it's headquarter is at Lausanne, Switzerland. The company is led by a third generation of the
Bata family. With operations in 68 countries, Bata is organized into four business units. Bata
Canada, based in Toronto, serves the Canadian market with 250 stores. Based in Paris, Bata
Europe serves the European market with 500 stores. With supervision located in Singapore, Bata
International boasts 3,000 stores to serve markets in Africa, the Pacific, and Asia, Finally, Bata
Latin America, operating out of Mexico City, sells footwear throughout Latin America. All told,
Bata owns more than 4,700 retail stores and 46 production facilities. Total employment for the
company exceeds 50,000.
BATA culture is rooted in what it stands for. Its success has been built through the values they
believe in. Every achievement, every accomplishment, every step forward was powered by the
same engine: BATA core values.
Improving lives. Respecting and understanding local culture and needs.
Be Bold. Driving innovation and creativity at all levels.
Serve With Passion. Listening and understanding.
Exceed customer expectations. Excellent design, comfort, and value.
Count on Me. Embracing teamwork and supporting each other.
The Bata Innovation Lab initiates innovation by filtering ideas through a robust decision-making
process to identify the next big concept to develop and bring to market. This process, along with
the establishment of new supplier partnerships, delivers advancement in footwear technologies,
materials, and manufacturing—which results in exceptional shoes.
Vision
To Grow As a Dynamic, Innovative and Market-Driven Domestic Manufacturer and Distributor,
With Footwear as Our Core Business, While Maintaining a Commitment to the Country, Culture
and Environment in Which we Operate.
Mission
To Be Successful As the Most Dynamic, Flexible and Market Responsive Organization, With
Footwear as Its Core Business.
BATA BUSINESS
Bata Shoe Organization Companies Are Involved in Every Face of the Business of Shoes.
Throughout the World, Bata Companies Service Customers from the Store Sales Floor to the
Factory Floor.
BATA BRAND
PRICE
The price of the product is the amount that a customer pays for to enjoy it. Price is a very
important component of the marketing mix. Pricing helps an organization to achieve its
objective. For a customer also, price is the main reason to visit a store. A pricing strategy must
be consistent over a period and should consider the retailer's overall positioning, profits, sales
and appropriate rate of return on investment, that is, the lowest responsible price is the best right
price.
Bata uses psychological pricing as its pricing strategy. Bata generally prices a product to the
nearest lower "9" digit figure of the actual price. For example, any commodity to be priced $10 is
priced at $9.99 to lure and attract more customers. Bata started this strategy in terms of pricing
its products long back, but it is still being implemented in Bata Showrooms. Bata prices its shoes
very moderately and keeps them easily affordable, which is one of the key reasons for its growth.
Bata has some premium products like Hushpuppies to drive margins, whereas other products are
mainly present to drive turnover and quantities.
PLACE
The brands should keep in mind that the product is available at a place of consumption so that
the consumers can easily buy it. There are two major components of the place are marketing
channels and physical distribution. The placement of products of Bata was done after extensive
market research. The company has positioned itself as an Indian brand which provides reliability
at a budget-friendly price. It completely relies on its distribution network. All the foreign markets
were studied for their cultures, needs, economic conditions, and responsiveness. After that, a
substantial distribution network was established. The strength of Bata lies in the Metro cities,
mini metro cities, towns and small towns. Even small towns have outlets of Bata and this
availability has become a great source of promotion of the brand.
PROMOTION
Promotion is a very important component of marketing as it can boost brand recognition and
sales. After deciding upon the budget, the brand should determine the appropriate promotional
mix which is a combination of advertising, public relations, personal selling, and sales
promotion. Seasonal Sales, discounted days are some strategies to grab more attention from
customers. Bata has consistently targeted all segments of the market varying its product costing
range. Bata has also followed a traditional method for targeting Indian festivals for its discounts.
During the non-seasonal time, Bata had focused to go advertising (Print and Media) also
nowadays they are also focusing on social media marketing. Digital marketing is the main part of
the campaign of BATA. With a wide variety of products for different age groups and different
segment of society, BATA has a specific strategy.
CAMPAIGNS
Celebrating Bata's 125th anniversary, the campaign includes revitalized advertising and
promotions. In Singapore, Bata conducted the ‘Bata Red Parade' featuring a group wearing
nothing but red zentai suits – a head to toe skin-tight garment – heading through malls and other
locations in the central business district.
According to Bata, the spirit of the campaign will move past advertising and dictate everything
from footwear collections to store concepts.
Bata has built a massive retail network by opening stores in some of the country's busiest
markets, small towns, and malls. It reaches Indians living in more than 500 towns. While Bata's
large footprint of exclusive and franchise stores will continue to generate the bulk of growth for
it.
CAPILLARY TECHNOLOGIES
Capillary has been acting as Bata's CRM partner in six Asian countries including Singapore,
Malaysia, Indonesia, Thailand, India and Bangladesh, and three African countries, Kenya,
Zambia, and Zimbabwe. Capillary has powered Bata's loyalty program for over 2,000 stores.
Intending to provide a unified CRM platform across all its markets, Bata will be kicking off its
game plan for the Philippines and Vietnam. Capillary Technologies, whose omnichannel
solutions and AI-Powered technology platform help Bata, strengthen its omnichannel CRM
strategies in the Philippines and Vietnam.
SWOT ANALYSIS
Strength
1. Bata has a worldwide presence in over 70 countries and production facilities in 27 countries
2. The benefit received from the link to the international organization for back-office systems,
product innovations, and sourcing.
3. Bata showrooms are found in all the major cities, mini-metros and towns
4. Sells through over 1200 retail stores in India and 5000 stores worldwide
5. Bata employs more than 6800 people in India and 40000 people world over and over 30,000
dealers
6. Excellent advertising and brand presence.
7. Wide range of footwear including ladies' sandals, heels, and sports shoes, men formal shoes,
trek shoes, accessories, etc.
8. Bata has penetrated the market well Bata is present in large cities to small towns. This helps in
maintaining its customer base and also capturing the new demand created in the market.
9. Bata has positioned itself well as a fashionable yet affordable footwear brand.
10. Bata has a cost advantage and can manufacture a huge range of footwear at a very affordable
price.
Weakness
1. Limited market share due to competition: Bata has been subjected to a high competition which
doesn't allow Bata to have a high market share. Bata's market share has been reduced to 6
percent.
2. Intense competition in the footwear segment means limited scope to overhaul market share.
4. Bata India's year on year sales has been in a downtown although the company's profit has been
increasing.
Opportunities
1. People now look towards buying footwear as a blend of fashion and comfort, so now has an
increasing market size
2. Bata has an opportunity to create a separate division for tackling the rural markets in emerging
nations
3. Global expansion in the premium footwear section
Threats
1. Intense competition from other leading footwear brands can affect Bata's margins
2. Commoditization if fashion footwear not differentiated well
CHALLENGES
Bata faced the challenging task of taking a company steeped in a 19th century way of doing
business, and making it more nimble-footed, given the tectonic shift in the business landscape.
Bata is still at it after 120 years, but now the challenge is to re-invent the business, acquire
competitive advantages and reduce the complexities of each region and country which
represented Bata operations earlier. In the footwear industry, production has migrated to
countries like India from Europe.
"To sell products in countries like India, where temperatures touch 35 degrees, needs different
attention." The focus on product and customer service is what Bata has picked up from his
father, Thomas J Bata, the honorary chairman whose visiting card still reads ‘senior shoe
salesman'. "I believe that you have to change and change fast.
The key flagship stores have to change in terms of look and décor every three years. Its
evolution, not revolution," is the mandate that Bata has set for himself. An interesting corollary
that Bata narrates is that whenever he's playing video games at home, it reminds him of the way
business is done today.
The first change came in the form of implementing a new structure for the business, with four
meaningful business units (MBUs). One of these is Bata International, operated out of Singapore,
which looks after the Asia-Pacific market. Bata International is the biggest MBU within the
operation, with 3,000 retail stores featuring brands like Bata Industrials, Bubble gummers, Marie
Claire, Power, and Sandal.
The other three MBUs are Bata Retail Europe, Bata Latin America, and Bata North America.
"The idea is to have outstanding products related more to the masses. The changes have been
dramatic, therefore, a more dynamic operating model is needed," explains Bata. The next phase
of change is to continue the merger of some operations into a single entity.
As part of restructuring the business, the company operates shoe innovation centers in Italy,
Canada, Mexico, Indonesia, and China, with each center focusing on new technology and
materials for ranges like Bata premium, athletic and casual wear, children's shoes, and men and
women fashion shoes. The innovation centers are also a part of a larger integrated presence,
rather than every country/region reinventing the wheel. "The centers of excellence are not only
for product development but also act exciting the example of the innovation center in Italy, he
points out that it focuses on fashion and supports the activities of nearby countries. In India, Bata
says that structure is still being formalized, with a focus on developing comfort lines for the
men's category. "As a business grows, Bata will be supplying to countries from India,
particularly in the men's category," he states. As far as India is concerned, Bata is satisfied with
the positioning of a brand for the family.
Men's shoes have been our heritage. There are 500 million men in India. If we get them, they
stay loyal to our brand and it's good for our business. At the same time, we are targeting the
ladies segment as well. We are not making a concerted effort to cater to the young yuppie
constituent," Bata explains. Men's footwear constitutes nearly 40% of the business in India,
while ladies' footwear has seen an increased off-take of 10% year-on-year to the total business,
informs Bata. With a retail network of over 1,000 outlets and a turnover touching Rs 1,000 crore,
Bata in India still hasn't been able to ride the retail boom in the country — despite having access
to some of the best real estate in both towns and metros. It's something that Bata admits needs
correction. So, from a pure neighborhood store concept, Bata is now moving towards
flagship/city stores and family stores. While the flagship outlets will have select exclusive
merchandise comprising even accessories the family stores, says Bata, will carry more of ‘family
type products like flip-flops.
"In these two concepts, the design and look will be consistent across stores in Asia. Of course,
the look and feel of the flagship will be revamped every few years to keep the look
contemporary," he explains. To complement the retail network, Bata believes the internet
provides an interesting opportunity to sell to customers: "Retail will be one of our legs, but home
delivery and websites also cannot be ignored."
Shopping Centre Concept: Bata has its largest store located at Bashundhara City Shopping
Mall. Other than that, Bata also opened up different outlets in different shopping centers as these
shopping centers becoming the powerhouse of sales in recent days. Moreover, as the shopping
centers are crowded and people could get a wide range of items, customers do prefer to shop
from those stores. These cause the sales to go up and make Bata stores to enjoy the benefit to
operate stores in such shopping centers to grab multi-segment customers.
Bazaar Concept: These stores are not exclusively located in the posh areas since they contain
slightly less expensive shoes as well and are targeted towards the upper as well as the upper-
middle-class people. Bata Bazaar in different areas to capture the customers with upper-middle-
class with different promotional offers.
Family Concept: These are widely spread across the country. These stores contain shoes for
all members of the family. While the large stores (due to having huge store area) could display
all the items in the first place but these stores are offering mostly limited items according to the
area and business model targeting the specified store's customers.
Liquidation/Clearance Outlet: In these stores, those shoes are sold which are either faulty in
some way or which have gone out of fashion after remaining unsold in the stock for too long.
PROMOTION STRATEGY
Enhancing "Bata" as the 'Top of the Mind Brand' as the preferred shopping destination for shoes
and accessories by bringing choice, quality, design, and value to the customers and offering
contemporary styles, comfortable enough to be part of daily activities from school to work.
Throughout the year, Bata organizes several brand & event promotional programs. Major
promotional programs are - Back to School, Boishakh, Monsoon, Eid-ul-Fitr, Puja, Eid-ul-Azha,
New Arrival, Special Offers, Big Sale, etc.
Bata, which operates in more than 60 countries, has developed a similar retail model in
Colombia and Bolivia. Through its Aquarella program, it works with around 10,000 self-
employed salespeople. Instead of selling directly on the doorstep, they provide office-workers
and homeowners with a weighty product catalog. Then they take a commission on any orders
placed. In different countries like India and Bangladesh, the vendors participating in different
programs and got more than double wages per month. The company's primary focus is on the
longer term. "It's not a program that will make them rich, but consumers will remember that Bata
reached out to them. That strategy has certainly proved true in India, where many of Bata's low-
income customers have gravitated into the middle classes over the past two decades. During that
transition, they've stuck with the Bata brand. The company now has around 3,500 stores
countrywide, giving it the largest market share of any shoe retailer in India.
Bata implements tight waste management and recycling procedures too. The use of plastic shoes
can help prevent illnesses linked to parasitic worms such as bilharzia.
BATA TODAY:
Bata is one of the world's widest-reaching companies, with operations in 70 different countries.
Bata companies strive to listen to the customers in their local markets and identify their footwear
needs, and then to provide products that exceed their customers' expectations in terms of quality,
style, and value. Bata operating companies are grouped into four business units based on
similarities in markets and business issues. Each group benefits from synergies specific to their
requirements, such as product development, sourcing, and marketing support.
Bata International serves customers in much of Asia, the Pacific, and Africa through its 3,000
stores and many dealers. It is supervised by Singapore. Bata International operates shoe
innovation centers in several countries as well as 30 factories to serve individual markets.
Bata Europe is based in Paris and operates 500 stores offering fashionable footwear. The world-
class shoe innovation center just outside of Venice supplies many of the exclusive lines found in
Bata stores throughout Europe.
Bata Latin America is based in Mexico City. Bata is the leading retailer of shoes in Latin
America and the leading marketer of children's branded footwear.
Bata Canada is based in Toronto from where 250 stores serve the Canadian market. Its chain of
Athletes World's and Nike Shops is the leading fashion source in Canada for young urban
customers.
Bata Shoe organization (B.S.O.) is the largest manufacturer and marketer of footwear in the
world. Its global business comprises of shoe factories, tanneries, engineering plants, quality
control laboratories, product development, and research centers. Bata distributes its products
through approximately 6,300 retail outlets, 10,000 franchises and thousands of wholesale depots
and dealers. More than 50,000 people are employed in producing and selling over 300 million
pairs of shoes each year, primarily for the domestic markets in which B.S.O companies operate.
OBJECTIVES:
Achievement of 100% estimated business in each category. Maintain a shoe line with 700 lines
of which 200, 300, 150 & 50 lines for Men, Women Children & Plastic respectively.
Introduction of a shoe line as per lifestyle as well as a fashion trend. Achieve an average 55%
margin in each category. Innovate ideas or systems for better management of merchandise
distribution by maintaining 4 times stock turn.
STRATEGIES:
Penetration to new & targeted market segments through the introduction of shoe lines as per
lifestyles with supportive promotion activities. A defined number of lines, assortment & quantity
for each store according to merchandise classification & store profile to increase efficiency in
distribution. Identification of loopholes in cost structure to increase production efficiency.Detail
analysis of price points of the entire shoe line to achieve maximum margin. Detail analysis of
departmental workflow & bringing necessary changes for efficiency better coordination with
other departments.
SUPPLY CHAIN MANAGEMENT
Bata is using its raw materials from his different suppliers. Some of the suppliers are local while
some are from Indonesia. Along with their production, they are also out sourcing for some of
their products. They are keeping a check on the quality of the products from outsourcing and
using their brand name.
The raw material coming from their suppliers are stored in the warehouses. These raw materials
are then moved to the production area, where the production is being done and the finished
goods have moved towards warehouse again for storage after proper quality inspection. They are
their distributors and they have their stores all over India. They have four types of store
concepts.
CITY STORE
The Bata city store gives you unique shopping experience as it showcases the latest collections
for footwear of local and international brands. The store ambience is designed to create a
lifestyle store that reflects and responds to your needs and expectations. The Bata city stores are
located in top shopping malls in big city canters.
FAMILY STORE
Bata is the world's leading family chain thanks to the wide assortment of every fashion footwear
available in our stores. The products are primarily the Bata brand, with a carefully selected
assortment of articles from both local and international brands.
SUPERSTORE
Bata superstore offers a wide assortment of fashion, casual and athletic for the entire family.
Located primarily in urban and suburban shopping center, these spacious stores offer the best
value by providing good quality shoes at great prices. Service is fast thanks to a self-selection
shopping environment with qualified staff to serve and assist.
FACTORY STORE
Factory stores are the largest and the most value-oriented stores of our retail chain. They are
ideally located in power canters, commercial parks and outlet centers with easy parking facilities.
The product selection offers more than 1,000 styles of ladies, men, children and sport shoes with
related accessories and apparel sold at attractive price points. It is based on a self-service concept
with helpful staff available for service at any time.
FACILITY LOCATION
1. Bata nagar factory batanagar, westbengal
2. Rubber purchasing dept. Kottayam, kerala rubber purchase, and processing.
3. Bataganj factory bataganj, Patna Bihar complete manufacturing
4. Bata tannery mokamehgh at, Bihar leather processing
5. Faridabad factory nit, Faridabad up complete manufacturing
6. Sandak division shivaji marg, sandak sandak footware.
SUSTAINABILITY AT BATA
Taking the best techniques in traditional shoe making and adapting them to new materials and
new markets has been a defining aspect of Bata for over 120 years. Bata has always thrived on
the challenge of making great shoes accessible, and today we can draw on our considerable
experience in the global footwear business to responsibly create, produce and distribute shoes
that our customers want and at prices they can afford. Bata has a great heritage, and we should
preserve the values and principles that define our business and our brand. Yet, we must be
forward looking and be prepared to adjust to new challenges and market opportunities. We also
need to use our scale to bring about systemic change in our industry and across the life cycle of
our products, from improving livelihoods to lowering the impacts of sourcing, manufacturing,
distributing and disposing of our footwear products. Our business model is proof that the
footwear industry can provide a way for people - particularly women - to be helped out of
poverty through job creation. We have a tremendous opportunity - through our global network of
employees, customers, suppliers, business partners and peers - to bring about meaningful change
in our industry.
MEASURING SUSTIANABILITY
Bata has adopted a five-step process to measuring and managing sustainability performance:
SUSTAINABILITY PILLARS