Assignment on comparison of two brands

Group members
Waheed ullah

Mohammad Amir

Mansoor siddiqi
INTRODUCTION TO BATA
Bata Corporation (originally, and in the Czech Republic and Slovakia, known as Baťa) is a
Czech multinational footwear and fashion accessory manufacturer and retailer founded in Zlín, today in
the Czech Republic. After World War II, its factories in socialist states were nationalized, while its
branches in capitalist states remained family-owned. It is now based in Lausanne, Switzerland. The
principal subsidiaries are Bata Europe (based in Zlín), Bata North America (based in Toronto), Bata Asia-
Pacific-Africa (based in Singapore) and Bata Latin America (based in Mexico City).

A family-owned business, the company is organized into three business units: Bata, Bata Industrials
(safety shoes) and AW Lab (sports style). The company is the world's leading shoemaker by volume, [citation
needed]
 and it has a retail presence of over 5,300 shops in more than 70 countries and production facilities
in 18 countries.

INTRODUCTION TO SERVIS
Servis Industries Limited (SIL) (‫ )سروس انڈسٹریز لمیٹڈ‬is a Pakistani multinational shoes and tire
manufacturer which is based in Lahore, Pakistan.[2]

The company's factories are located in the Pakistani cities

of Gujrat, Muridke, Nooriabad, Raiwind, Negombo, Sri Lanka.[2] The company had humble beginnings in
1941. Servis Shoes is a shoe manufacturing company and Servis Tyres is a tire manufacturing company
working under the Servis Industries Limited
HISTORY OF BATA

August 24, 1894

Start of Bata

Thomas Bat’a (pronounced ‘Batya’) establishes a shoe factory in Zlín, Czechoslovakia. Bat’a succeeded in
becoming one of Europe’s leading shoe manufacturers in just a few decades, due to smart
entrepreneurship, mechanization and competitive pricing

HISTORY OF SERVIS

After September 11, 2001, Congress updated the legislation to mandate the use of an electronic system
to collect information on all F, M, and J nonimmigrants. To meet this mandate, DHS and the Department
of State deployed SEVIS in January 2003.

4PS OF BATA
Bata Product Strategy:

The product strategy and mix in Bata marketing strategy can be explained as follows:

Bata is one of the most popular brands in the shoe industry having a wide variety of footwear for all age
groups. The main products in its marketing mix are general category of casual shoes, formal shoes,
sandals, kids’ shoes, men and women collection, sports shoes etc. The product line gets upgraded with
time and new fashion in market. Bata has specially known for its brand value and quality product. Indian
customers have always been price sensitive issue and ‘Bata’ has maintained starategy of minimumn
prises according to Indian customer requirement. Bata have more other brand under control.Some of
the brands under BATA Hush puppies, spark, Sandak, North Start, Comfit, Mocassino, Bata. Bata’s
product has recognisation in indian market due to its quality according to their prices.
Bata Price/Pricing Strategy:

Below is the pricing strategy in Bata marketing strategy:

Bata offers its products at an affordable price especially at the high cost it offers.

Mass Marketing pricing is main strategy of Bata brand to maintain its low proices for all its brand
products. Production of mass products leads to lower operating costs resulting in less product
costs.Henceforth in India BATA have managed to maintain lower prices. Price of Rs.10. is kept as Rs.9.90
where BATA follows psychology of consumer to lure and attract more customers towards its pricing.
Hence, in India Bata is consider as quality brand of affordable cost. Main competition for BATA in India is
Red Chif, Wood, Nike, Puma and Reebok

Bata Place & Distribution Strategy:

Following is the distribution strategy in the Bata marketing mix:

The placement of products of Bata was done after an 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 Tier-2, Tier-3 and small towns of India. They accepted the tag of being
the Tier-2 brand in footwear so they positioned themselves in these areas very strongly.

Even small towns and big villages have outlets of Bata and this availability has become a great source of
promotion of the brand.

Bata Promotion & Advertising Strategy:

The promotional and advertising strategy in the Bata marketing strategy is as follows:

Seasonal Sales, discounted days are some strategies to grab more attention of customers.Bata have
consistently targeted all segments of the market varing its product costing range. Hence for promoting
all this, Bata has also followed traditional method for targeting Indian festivals for its discounts. During
non seasonal time, Bata had focused to go advertising (Print and Media) also nowadays they are also
focusing over social media marketing. Digital marketing is main part of campeign of BATA. With wide
varity of products for diffferent age groups and different segment of society, BATA has specific strategy.
Hence this gives an insight in the marketing mix of Bata

The Services Marketing Mix

Extending the 4Ps
The services marketing mix is an extension of the 4Ps framework. The essential elements of product,
promotion, price and place remain but three additional elements – people, physical evidence and
process are included to the 7Ps mix. The need for the extension is due to the high degree of direct
contact between service providers and its customers, the highly visible nature of the service process,
and the simultaneity of the production and consumption. Although it is possible to discuss people,
physical evidence and process within the 4P framework (for example, people can be considered part of
the product offering), this extension allows for a more thorough analysis of the marketing elements
necessary for successful services marketing.

Product
In the case of services, the “product” is intangible, heterogeneous and perishable. Moreover, its
production and consumption are inseparable. Hence, there is scope for customizing the offering as per
customer requirements, and the actual customer encounter therefore assumes particular significance.
However, too much customization would compromise the standard delivery of the service and adversely
affect its quality. Therefore, particular care has to be taken in designing the service offering.

Pricing
Pricing of services is tougher than pricing of goods. While the latter can be priced easily by taking into
account the raw material costs, in the case of services there are attendant costs–such as labor and
overhead costs–that also need to be factored in.

A restaurant not only has to charge for the cost of the food served but also has to calculate a price for
the ambiance provided.

Place
Since service delivery is concurrent with its production and cannot be stored or transported, the location
of the service product assumes importance. Service providers have to give special thought as to where
the service is provided. A fine dining restaurant is better located in a busy, upscale market as opposed to
the outskirts of a city. A holiday resort is better situated in the countryside away from the rush and noise
of a city.

Promotion
Since a service offering can be easily replicated, promotion becomes crucial in differentiating a service
offering in the mind of the consumer. Service providers offering identical services such as airlines or
banks and insurance companies invest heavily in advertising their services. This is crucial in attracting
customers in a segment where the services providers have nearly identical offerings.

SWOT Analysis of Bata Pakistan Ltd

According to the company, following are the strengths, weaknesses, opportunities and threats of Bata
Pakistan:

Strengths
One of Bata’s biggest strengths are their schools shoes, according to Haider Ali Rizvi there is no
household with school going children in Pakistan where you wouldn’t find Bata’s school shoes

Bata’s athlete footwear brand (Power) and their formal footwear brands (Weinbrenner and
Ambassador) are their strengths as well.

The interviewee also said that their biggest strength is their wide network of retail outlets;he added that
there is no other brand in Pakistan in the footwear industry with a network that huge

Bata is a complete family store catering all ages and genders all under one roof providing the customers
with value and satisfaction through good quality footwear at comparativelylow prices

Weaknesses
Offer limited variety in stylish and trendy footwear due to less focus on present trends.

Their advertisements and promotional activities are comparatively less than other brands. Haider Ali
Rizvi said that Bata used to have sales promotions every other month but now,they have sales only on
special occasions.

Opportunities:
The taste and demand for footwear has recently changed, nowadays customers deny purchasing old-
designed and simple shoes and are now diverting towards buying fashionable and newly designed
shoes. Hence, they have the opportunity to be innovativewhen it comes to their footwear. The
interviewee added that, if you go to Stylo, you will find a lot of variety (bridal and trendy footwear), he
said that Bata hasn’t focused much on fashionable footwear, their focus has always been about catering
to the whole family’sneeds but now they are thinking about it.
Threats

Increasing cost of production is one of the threats they are facing. Umar Rajput, the assistant manager
of the Atrium mall branch of Bata, told us that Bata uses a method which minimizes their cost but the
prices of the raw materials are increasing as the dollar rate is increasing, power shortages in Pakistan
and the rate of tax on imported products is increasing as well so they led to Bata Pakistan Ltd. to
increase the prices of their footwear, which is affecting their business.

SWOT ANALYSIS OF SERVIS

SWOT analysis is an analysis tool used by companies to measure and examine the four aspects
which are divided on the basis of internal to the company and external to the company. Internally
companies are required to check the strength and weaknesses and externally the analysis of
opportunities and threats are measured. It helps in minimizing the threats, working on the strengths,
taking the advantages of the opportunities and eliminating the weaknesses of the firm.

Strengths:
Servis shoes has a couple of strengths ranging from lower costs to lesser prices including the wide
variety of shoes and a strong market share. Servis shoes incur lower costs of production which
ultimately creates and incentive to keep a lesser price and achieve higher profit margins. They have a
variety of shoes which caters to the demands of different age groups, gender and uses. Servis has a
strong market share in ‘middle class’ shoe segment. Also the brand name of Servis is widely known and
consumers place a value due to the brand name of Servis

SERVIS Conclusion and Recommendations

Servis Shoes is doing exponentially good in the market and is proving to be a local Pakistani brand that is
able to meet the quality bench mark set by Bata in Pakistan.

Servis Shoes have used varies techniques to give this international brand a good competition with in
Pakistan and is also spreading its network abroad. Servis’s sales have increased over the past three years
and there has been no noticeable fall in the quality of Servis. However, there is still a need from the
consumers’ side of further better quality products. Soul is doing exponentially good in market, and so is
Cheetah, but from the analysis and research, it has been seen that Don Carlos is not doing as good as
the other two products of Servis that were analysed.

The quality of Don Carlos need to taken into account. Currently, Bata, the major competitor or Servis, is
not giving any such competition to Servis in this line but other international products are. Zara, a local
brand, is gaining popularity quickly; Studio Empoli has already made its image in Pakistan and so on.
Servis needs to realize that in Don Carlos, its prime competitor is not Bata, in fact its multiple other
brands, local and international both. Hence, Servis should cater to the needs of the consumers and
expectations of the consumers accordingly.

BATA CONCLUSION
CONCLUSIONTo conclude, Bata Company is known as the most respected and popular shoe
brandbecause of its quality, from the early partition days. It is an internationally renowned brandand
satisfies the needs of every country where it is present with respect to its specificcultural requirements,
weather conditions and customer-specific considerations. One of theBata's goals is to provide shoes for
everyone, every occasion and suitable for every career.Bata provides tremendous value and
convenience with an incredible variety of styles.Customers have seen Bata's shoes as highly innovative
in fashion trends by continuouslyoffering new types of men's shoes, women's shoes, children's shoes,
school shoes andslippers.The word Bata is synonymous with efficiency and trends.