|BUBBLEGUMMERS BATA

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TABLE OF CONTENT

ACKNOWLEDGEMENT____________________________________________________3
COMPANY PROFILE_______________________________________________________4
BATA PAKISTAN__________________________________________________________5
BUBBLEGUMMERS________________________________________________________7
OBJECTIVES______________________________________________________________8
MISSION__________________________________________________________________8
COMMITMENT____________________________________________________________8
BRAND IMAGE____________________________________________________________8
SITUATION ANALYSIS_____________________________________________________9
1. General Environment_______________________________________________________9
2. Products Markets_________________________________________________________11
3. Competitors______________________________________________________________11
4. Customer Markets_________________________________________________________12
5. Objectives________________________________________________________________12
UNCONTROLLABLE ENVIRONMENT______________________________________13
Economic Environment__________________________________________________________13
Social Cultural Factor___________________________________________________________14
Political Environment___________________________________________________________15
KEY PRODUCTS IN THE MARKET_________________________________________16
KEY COMPANIES IN THE MARKET________________________________________18
SERVICE_____________________________________________________________________18
CUTE________________________________________________________________________19
MINNIE MINORS______________________________________________________________19
CHINESE FOOTWAER’S_______________________________________________________20
STRENGTHS OF THE COMPANY__________________________________________21
WEAKNESS OF THE COMPANY___________________________________________23
FUTURE OUTLOOK OF THE COMPANY____________________________________24
NEW MARKETING STRATEGY____________________________________________25
BIBLOGRAPHY___________________________________________________________27

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ACKNOWLEDGEMENT

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|BUBBLEGUMMERS BATA

COMPANY PROFILE

This company came into being in year 1894. Bata is one of the world leading
footwear retailer and manufacturer with operations across 5 continents managed by 4 regional
meaningful business units (MBUs). The MBU approach provides quality resources and
support in key areas to the companies operating in similar markets such as product
development, sourcing or marketing support. Each MBU is entrepreneurial in nature, and can
quickly adapt to changes in the market place and seize potential growth opportunities.

Bata's strength lies in its worldwide presence. While local companies are self-
governing, each one benefits from its link to the international organization for back-
office systems, product innovations and sourcing. Although Bata operates in a wide variety of
markets, climates and buying power Bata companies share the same leadership points. Two
important ones are product concept development and constant improvement of business
processes in order to offer customers great value and the best possible service.

Bata Today

 Serves 1 million customers a day

 Employees more than 40,000 people
 Runs 4,600 stores
 Controls sales in more than 50 countries
 Operates 40 production facilities in 26 countries

Four Bata MBU’s

 Bata Europe, Lausanne

 Bata Asia Pacific-Africa, Singapore
 Bata Latin America, Mexico
 Bata North America, Toronto

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BATA PAKISTAN
 
Bata Pakistan was established in 1942. When Pakistan came into being it was ready to
serve the nation. It was incorporated in Pakistan as Bata Shoe Company (Pakistan) Limited in
1951 and went public to become Bata Pakistan Limited in the year 1979.
 
Since its inception, the company has not only maintained a reputation of
manufacturing high quality footwear for all the socioeconomic segments of the society but
has also been designing shoes in accordance with the changing fashions and trends.
 
During the last year Bata produced over 17.2 million pairs and sold 16.9 out of them
with the help of their large distribution network of 400 Retail Stores and Agencies, 13
Wholesale Depots, 23 Distributors and about 400 Registered Wholesale Dealers who are
selling goods as independent retailers. In 2009 the company generated turnover of Rs.6.5,
billon showed an increase of 26% against previous year.
 
The Company has an organized Export Department which is constantly engaged in
exploring new export markets in order to earn the foreign exchange for the country. During
the current year i.e. 2011, it is expected to export 1 million pairs of various styles of footwear
to European and African countries.
 
Bata is a multinational company and has played a vital role in the economic progress
of Pakistan. It has transferred sophisticated technology and business skills to the country and
provides direct and indirect employment to about 10,000 people. Bata also supports a large
number of local manufacturers by buying raw materials from them.
 
As corporate responsible citizen Bata is actively fulfilling its responsibilities since
when it’s started its business in the country. We are permanently patronizing many charitable
organizations and helping them in the form of cash and free shoes. The renowned names on
our list are S. O. S Children Village, Shoukat Khanam Cancer Hospital and Rising Sun
Institute. Besides these we have also running many welfare schemes for our own employees.
 
Bata has always been the market leader and in order to maintain its leadership it has
invested millions of rupees in updating its systems and equipment during the last few years.

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This will enable the company to expand, modernize and develop its operations and in the
process provide additional employment opportunities. Bata the market leader is well
equipped to cater the customer’s demands and to meet future challenges.

Bata operates stores in many of the world’s fashion capitals. Bata City Stores offer
urban customers the best in today’s fashion footwear and accessories. These stores are in city
centre’s prime locations, and provide a high level of customer service, exclusive fashion shoe
lines with complementary accessories, and contemporary shopping environments to
discerning shoppers.

Bata is the world’s leading family footwear chain thanks to the wide assortment of
everyday fashion footwear available in their stores from Milano to Delhi. The products are
primarily the Bata brand, with a carefully selected assortment of articles from both local and
international brands.

Brands

Bata should target to middle and upper class, because lower class now prefer to
purchase Chinese and local shoes. Bata should continue to grow in upper middle class. It
should provide better products in terms of quality as well as price. Bata should not focus on
fashionable footwear because Bata is well known for its functional footwear for its reliability.
It should focus on their successful brands like Bubble gummers.

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BUBBLEGUMMERS

Bubblegummers was born in Toronto, Canada in 1977. Since then it has offered
innovative, exciting and fun children’s footwear to the highest quality.

One of the largest footwear brands for children, which is present in over 60 countries
worldwide. This is a shoe specially designed for children, unique scented gum, noble
materials, high quality, colourful and cheerful models, for each stage of growth of the foot.

Bubblegummers shoes brand since its inception in 1971 in Italy, after 35 years of
development, has become the world's best-selling children's shoes brand. In 2005, their
children's shoes in 60 countries on five continents in major cities Communist China has more
than 8,000 stores, sold 50 million pairs, more than three hundred million dollars turnover in
children's shoes on the market is well deserved champion brand.

Bubblegummers shoes by Italian designer each, designed to focus on "health" and

"comfortable" and "full of childish", to make the product reflect the "health and happiness go
hand in hand," "comfortable and relaxed through childhood" and "As colorful and
childhood," and other concepts, fit healthy, smart, confident new generation of children's
needs. They cover the 0-12 age group children's shoes, a very rich product line, including
dress shoes, casual shoes, sports shoes and other series, every child can find their shoe in
bubblegummers shop like a pair. Its colorful shoes shop, full of playful decoration and props,
is a powerful weapon to attract children's attention. Every shoes shop is a children's park.

Bubblegummers shoes product line rich, reasonable price, the company has strong
development capabilities and branding experience, relying on a wealth of brand management
experience.

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OBJECTIVES

To be the leading brand in the children footwear worldwide

MISSION
Offering shoes, clothes and accessories of high quality, comfortable and fashions
designs to ensure a healthy growth of children.

Our products have been developed under the highest standards of comfort, safety and
quality to achieve joy in every step of life and development of children. Innovation and
entertainment applied to products have become Bubble gummers one of the leading brands of
children in our markets.

COMMITMENT
All our products are developed under the highest standards of quality, designed with total
comfort and safety of children to develop and explore each phase of life.

BRAND IMAGE

Bubblegummers tirelessly seeks to project through their campaigns an effective

communication with parents and children. Magic Colours and Fantasy are the main elements
of our world, where you'll learn to play is to share and imagine.

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SITUATION ANALYSIS

Situation analysis is taking account of where a company has been, where it is now and
where it is likely to end up following the current plans.

1. General Environment

 The General State Of Economy

Due to world vide recession; the economy of every country was distressed.
The recession also affects Pakistan economy as a whole, including the pathetic
situation of Politics in Pakistan. Inflation, Security Situations, Unemployment, Lack
of Foreign Investment, High interest rates, Disturb balance of Trade, Low per capita
income, Crises in industry sector are all the factors which are affecting the Pakistan
economy.

Pakistan economic growth faced a serious setback in fiscal year 2009 because
of the depressed consumer credit market, slow progress of public sector programmers,
inflation, and reduction in subsidies, security threat, and instability in the state and
energy crisis. Additionally, no attention was given to the agriculture sector. The
exports declined by six percent and imports by 10 percent. The only thing that became
a silver lining was the increment in remittances by 22%.

Shortages of energy and power do not let the boom entered into the industrial
sector. In addition the sanction applied by IMF on different sectors creating a hurdle.
This resulted in unemployment and services sector decline. Because of security crisis
the graphs of investment do not take any surge.

 The Economic Situation of the Shoe Industry

Both in Pakistan and around the globe, the demand for footwear is increasing.
Pakistan is one of the most populous countries in the World and according to an
estimate with an average population growth of 2.25 %, about 3 million children have
been born during the year 2008-09, signaling the growing demand for footwear in
Pakistan. It is also estimated that about 60 percent of the World’s total consumption
consists of simple footwear made entirely of non-leather materials and that for the
remaining 40 percent only the upper part of the shoe is made of leather.

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In the manufacturing of footwear, most frequently used material consists upon

leather, manmade materials, rubber / canvas / synthetic and textile along accessories.
Different type of shoes are being produced by the local industry e.g. sportsmen, army,
disabled persons and safety shoes for the industrial workers etc. The population of
Pakistan is expected to be about 172 million in the year 2010. Keeping in view the
growth in population, the growth in the demand of footwear industry is also
anticipated
Though, significant growth has taken place in the Shoe Industry of Pakistan,
but there is a view that it has not been up to the mark and the industry has suffered
due to a growing and fierce competition of the emerging economies like India and
China. There is a general perception that after suffering from the cut-throat
competition especially with China, the footwear industry is doing better especially in
the previous two years and it is regaining the strength to fulfill the local demand as
well as compete efficiently in the world market.

In the global market, the demand for footwear is high and in most of the
developing countries it is growing on average. It is also estimated that about 60% of
the world’s total consumption consists of simple footwear made entirely of non-
leather materials and that for the remaining 40% only the upper part of the shoe is
made of leather. [SMEDA 2006] According to UN COMTRADE data, Pakistan
footwear exports for the year 2006 were about US$ 135 million. Out of total footwear
exports, leather footwear accounts for 43.15%, which makes leather footwear
extremely significant.
Pakistan’s footwear industry manufactures around 120 million pair annually
for local consumption and it exports 2 million pair per annum roughly and the average
price charged for each pair stands around $10. Its share in Pakistan’s total exports is
about to touch the figure of $200 million.

 The Condition of the Bata and bubblegummers in that Industry

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Bata is doing well in shoe industry because they are catering middle and upper
middle class. And if we talk about bubblegummers they are also working fine because
footwear’s are considered as a necessity in the human life. As described in the above
shoe industry condition the future of bata as well as bubblegummer is bright.
However condition of the country is also affecting this product because if one
household buy one shoe for a 3 months or four, now he is buying for 6 months. Their
power of purchase becomes low because of inflation, unstable political condition,
security risks and unstable economic conditions of the country.

2. Products Markets

 Products Types
 Dress shoes
 Casual shoes
 Sports shoes
 Sandals

 Product Varieties
 Variety of colours in shoes
 The entire sizes in both shoes and sandals too.
 They Cater children from 0-12 years
 Variety of colours in Sandals

3. COMPETITORS
There are following competitors working against bubblegummer in the
market.

 Service
 Cute
 Minnie Minors
 Chinese footwear’s

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4. Customer Markets

 Demographic Factors
The bubblegumers is working in the whole Pakistan and they have divided their
regions with respect to provinces and they are serving them effectively and
efficiently. Their products are displayed in each and every Bata store and their stores
are also located in the main areas and markets too, so that customers could easily go
and do shopping.

5. Objectives
The objectives of bubblegummers are as follow

 All the products are developed under the highest standards of quality

 They are designed with total comfort

 All of the products provide safety to the children to develop and explore each phase of
life

 To be the leading brand in the children footwear worldwide

 They tirelessly seek to project through their campaigns an effective communication

with parents and children.

 Magic Colours and Fantasy are the main elements of our world, where you'll learn to
play is to share and imagine

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UNCONTROLLABLE ENVIRONMENT
Economic Environment

BATA consists of those business activities involved in the sale of consumable goods to
consumers for their personal, family or household use. It uses the final stage in a channel of
distribution, which comprises all of the businesses and people involved in the
physical movement and transfer of ownership of goods and services from producer to
consumer.

It mains functions involves

 Interpreting needs of the consumers of its area that which type of product they want?
 Developing good assortments of products.
 Presenting them in an effective manner so that consumers find it easy and attractive to
buy.

The choice of a store location has a profound effect on the entire business life of a retail
operation. The location of BATA is very good and attracted almost all the nearby customers.
As it is located in the market, other shops are also located with it that increases its value. A
large edge is that no other shop is present nearby where the consumers get confectionaries
and retail products together in one shop.

A rise in living standards would ultimately imply an increase in demand for consumable
products thereby, providing greater opportunities for BATA to make profits but the inflation
and decrease in the wages of the consumers are also had a great effect on the sales. More
customers negotiate and discuss about the rise in price. A Business strategy should be
developed keeping in mind for this fluctuation.

The BATA Company has to setup the price according to the economic condition of Pakistan.
The purchasing power of people is very low and they cannot buy the high price of the
product.

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Social Cultural Factor

There are a wide variety of factors which have an impact upon the way BATA operate with
the main area being identified as social and cultural influences. Particularly relevant to
today's difficult financial climate of Pakistan is the affect that unemployment has on
spending. For example, in the current economic crisis it is highly likely that many families
will now be cutting down on non-essential or luxury items.

According to BATA, Social class is recognized as a key to patterns of behavior and this is
usually classified through the identification of occupation of the main employed person in the
household. Women at home comes to the shop more as compared to the men as their chief
role, they will have more choices and conscious in quality foods and other consumer items
than men who work.

Various personal factors include individual characteristics that, when taken in aggregate,
distinguish the individual from others of the same social group and culture. These include
age, life-cycle stage, occupation, economic circumstances, and lifestyle. The stores are
located in Lahore, where most of middle and upper middle class are located, a consumer’s
personality and self-conception will also influence buying behavior. Most of the people
belongs to lower middle class, negotiate and bargain on every consumerable items as their
income is not fulfilling their needs due to economic crises and on the other hand several other
people belongs to upper middle class don’t bother to negotiate on prices. They put the order
and purchase the commodity.

Buying patterns are also greatly influenced by the changes in the structure of the population,
and in consumer lifestyles. Age, gender, etc all determine the buying patterns and
understanding of such changes is critical for developing strategies by BATA which are in line
with the market situations.

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Political Environment

This refers to the changes in government and government policies. Political factors greatly
influence the operation of business. BATA operating in the Lahore have to adopt directives
and regulations created by the Punjab Government. The political arena has a huge influence
upon the regulation of that business, and the spending power of consumers. It must consider
the stability of the political environment, government’s policy on the economy etc.

Political changes are closely tied up with economic ones and relate to changing governmental
influence. For example, a change from a government of one political party to another political
party would affect taxation policies which would impact on the cost of production and the
sales of the products. So according to the owner of the store, whenever the government
changes the sales tax on the goods will increase and he is forced to sale the products on
higher prices.

Moreover, Laws in Pakistan are continually being changed in a wide range of areas in
Political system regarding the food commodities are concerned by the politicians, so that will
also one cause for the change in prices of the products. Politicians made new policies day by
day and it create the unstable market position for the investors. That also affects the sale of
the store.

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KEY PRODUCTS IN THE MARKET

Bata is a multinational company which has various brand lines in order to satisfy the
various segments of market. All the mentioned brands are devoted to make best
quality of shoes for the particular segments they are assigned.

Below is a brief introduction to the various brands of Bata private limited.

Bubblegummers is the leading children's footwear brand in Pakistan. They offer good quality,
comfortable, funny and colorful shoes for the 0 to 12 olds that assure the healthy growth of a
child's foot.

New range of self design shoes with combination of vibrant colored material upper with self
branded outsole. Bubblegummers also carry a wide range of accessories, for example Full
range of casual bag, school bag, stationary and others also complimented with non bbg brand
accessories namely featuring latest cartoon theme accessories.

Marie Claire shoes are for women with an active lifestyle who seek contemporary modern
styles, Marie Claire shoe stores successfully opened in Latin America and Asia.
Bata Brands is the trademark owner of Marie Claire for shoes worldwide (except in Japan
and Korea).

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The Weinbrenner line is made up of leather shoes and boots, low, mid and high cut. Cuts or
design are dictated by fashion, but can include Goodyear welt construction, rugged moccasin
and other strongly outdoor associated cuts but always in casual style. Closure generally with
laces and eyelets, sometimes supplemented with hooks, D-rings and straps with buckles.
Colours will be of natural tones including black, brown and burgundy. “Outdoors is Yours”
is a tagline commonly used.

Power embodies diversity with ranges in running, training, court, basketball, football and
Outdoor that combines function with creativity. To enhance the different categories there is
also a range of young, casual and trendy collection of shoes. The range that has technical
features and functions to boast the Power image is the badminton and court collections.

Comfort will be an important feature in design and assembly of all the comfit shoes. Many of
the Desirable and characteristics such as double stitching molded and massage insole, latex
foam insole, soft textile or cambrelle lining will be used to emphasize the brand image of
both comfort and style. “Get Comfortable Today” is a tagline commonly associated with
these range of shoes

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KEY COMPANIES IN THE MARKET

SERVICE
Service shoes company is also providing the children footwear named as TOZ and SKOOZ.

SKOOZ puts a whole new spin on student life with comfortable and durable shoes that are
perfect for fun on and off the schoolyard.

 Comfortable and durable

 Great for study and play
 Makes school fun

TOZ brings kids a colorful world packed full of fun and adventure. The fun never stops
with TOZ!

 Brilliant colors and designs

 Contemporary styling
 Full of fun and adventure

Boys
Bring on the fun and games with TOZ BOYS! Cool designs and great styles make TOZ
BOYS the coolest shoes a boy could have.

 Hip and trendy designs

 Smart styles
 Get noticed

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Girls

Girls do things their way with TOZ GIRLS! The great designs and great colors of TOZ
GIRLS give girls the edge when it comes to style.

 Colorful designs
 Great style
 Perfect for party time

CUTE
STYLO has also diversified to the children footwear’s named as CUTE footwear’s.
However they are available only on the stylo outlets in all over Pakistan. Few weeks ago they
have launched a new store named as CUTE on link road township Lahore. They are working
on the nationwide opening of the stores of Cute.

MINNIE MINORS
Minnie Minors was established in 1999 with a colorful range of fashionable classics
for newborns through to pre-school. Today there are more than 50 stores in strategic locations
nationwide. They manufacture high quality shoes designed with the high quality materials /
embellishments with an innovative range of soft toys, furniture, jewelry, fashion and home
accessories, and shoes for children. This is the brand of BREEZE targeting children all over
the country.

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CHINESE FOOTWAER’S

China is offering children footwears in a vast range and low price category. They are offering
almost all the shoes like baby shoes, casual shoes, school shoes, sports shoes, boys
footwear’s, girls footwear’s, leather shoes and many many more. They are the main threat to
the bubble gummers because bubblegummer is charging high prices because of their
reliability and durability.

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STRENGTHS OF THE COMPANY

Products

 Footwear for the entire family

 Quality Product in all fields
 Brand image
 Vast range for each segment

Price

 Reasonable quality at low or reasonable price

 Cater middle class too

Place

 Conveniently accessible outlets in various parts of the country

 Nationwide retail network
 Outlets with the Parking facility

Promotion

 Provide training for managers and employees

 Advertisements for all products
 Special discounts to their employees.
 Sales offered by the company occasionally like on EID, Offseason and any other
event with respect to Pakistan environment.

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Positioning

 “Get Comfortable Today” is a tagline commonly associated with the BATA

COMFIT.
 “Outdoors is Yours” is a tagline commonly used for WEINBRENNER.

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WEAKNESS OF THE COMPANY

Product
 No variety of fashionable shoes.
 Management loop holes with respect to launching a new product.
 Some of the articles are missing from the other franchise of the company.
 Sometime quality becomes low in the days of leather and rubber shortage.

Price
 Doesn’t cater low class
 More prices with respect to competitiors in bubblegummers brand.

Place
 Slow distribution system
 Far from the factory
 Company has to prefer company-owned stores.

Promotion
 No proper planning regarding Advertisement
 No promotion for new articles
 No hoardings or sign board advertisement done by the company

Positioning
 They have to give more emphasis on their brands to position them in the minds of
their customers.

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FUTURE OUTLOOK OF THE COMPANY

The company is doing well and good in the market. The point is only that they have to
change them with the environment and modify their products with respect to the needs of
their customers. Bubblegummers have good market value at this time and customers give
priority to them instead of other Chinese shoes or locals footwear’s. Parents are very much
curious about the comfort of their children so that’s why they like comfortable footwear’s for
their children.

Inspite of all the above bubblegummers future is looking bright if the condition of the
country becomes better because this could raise the per capita income of the household sector
and they could buy the footwear’s for their children easily without any hesitance.

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NEW MARKETING STRATEGY

 Bata can use its regional expertise e.g. in Malaysia for rubber based shoes and in
China for artificial leather shoes and use their expertise to be able to meet the needs of
the product lines for which they had some sort of a cost disadvantage.

 Company should focus on Product Development, Market Development and Market

penetration Strategies.

 Bata can also stay in its International markets that are beneficial to compete with
potential competitors.

 Bata should give more importance to Company-owned stores. In which it can control
and manage its operations easily.

 It should arrange more training programs for employees to have better quality
according to consumer preferences.

 Bata should target to middle and upper class, because lower class now prefer to
purchase Chinese and local shoes. Bata should continue to grow in upper middle class
so that they could provide better products in terms of quality as well as price.

 Bata should focus on quality footwear because Bata is well known for its functional
footwear for its reliability.

 It should focus on their successful brands like Bubble gummers.

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 The service standards should be strictly monitored and hence an experience fit will be
provided to the customers and these customers for this will be willing to pay a bit of
premium because of Bata’s brand and hence the competition undercutting Bata on
price would no longer be that big a threat.

 They should provide consistent quality service to its customers so that customers can
associate the same experience with whichever outlet they visit of Bata.

 Reduce Selling and Administration expenses to get more Net income.

 Internet is a broad medium so they should also improve E-business.

 Footwear industry is highly fashionable industry; hence Bata must improve the
efficiency of product development in order to bring new design and style.

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BIBLOGRAPHY

 Marketing Manager: MR. HAMMAD ASLAM

BATA Head Office

Address: Batapur, Near BRB Nehar, Lahore Pakistan

 BATA ANNUAL REPORT 2009-10

 [ CITATION BAT11 \l 2057 ]

http://www.bata.pk/about-us.html

 [ CITATION bub10 \l 2057 ]

http://www.bubblegummers.com

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