PROJECT REPORT

ON

A STUDY ON BRAND AWARENESS AND BRAND LOYALTY

OF BATA INDIA LIMITED, BANGALORE

BY

Suchit Kumar

1NH18MBA82

Submitted to

DEPARTMENT OF MANAGEMENT STUDIES

NEW HORIZON COLLEGE OF ENGINEERING,

OUTER RING ROAD, MARATHALLI,

BENGALURU
In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Guide Name

Designation

2018 - 2020

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 CERTIFICATE
This is to certify that Suchit Kumar bearing USN 1NH18MBA82, is a bonafide
student of Master of Business Administration course of the Institute 2018-20,
autonomous program, affiliated to Visvesvaraya Technological University,
Belgaum. Project report on “A Study on Brand Awareness and Brand Loyalty
of Bata India Limited, Bengaluru “is prepared by him/her under the guidance of
Mr. SRIKANTH RAJATH K.G., in partial fulfilment of requirements for the
award of the degree of Master of Business Administration of Visvesvaraya
Technological University, Belgaum Karnataka.

Signature of Internal Guide Signature of HOD Principal

Name of the Examiners with affiliation Signature with date

1. External Examiner

2. Internal Examiner

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 Grey Rock 1st Floor #-
10,24th Main J P Nagar 1st
Phase Bangalore,
Karnataka, India – 560037
www.bata.in
customer.service@bata.com

Date: 4th May 2020

TO WHOM SO EVER IT MAY CONCERN

This is to certify that Mr. Suchit Kumar (1NH18MBA82), a student of MBA from
New Horizon College of Engineering, Bangalore has completed from 10th Feb 2020 to 5th
Apr 2020 internship at Bata India Limited Pvt Ltd.

The project that he worked was on “A Study on Brand Awareness and Brand Loyalty of BATA
India Limited, Banglore”. During his internship, Mr. Suchit Kumar has been punctual,
hardworking and has shown leadership qualities.

We wish him all the best in his future endeavors.

For BATA INDIA LIMITED

Vijay Kumar M

A Sr. Manager-

HR

BATA INDIA LIMITED

CIN-L19201WB1931PLC007261
Grey Rock 1st Floor #-10,24th Main J P Nagar 1st Phase Bangaluru-560078 Tel: +91 80 3367 5600 / 601

REGISTERED OFFICE: 27B, Camac Street, 1st Floor, KOLKATA-700 016, INDIA Tel:
+9133 3980 2001 Email: corporate.relations@bata.com Website: www.bata.in

3
 DECLARATION

I, Suchit Kumar, hereby declare that the project report on “A Study on Brand Awareness

and Brand Loyalty of Bata India Limited, Bengaluru ” with reference to “BATA”
prepared by me under the guidance of Mr. SRIKANTH RAJATH K.G. Sr. Asst.

Professor , faculty of M.B.A Department, New Horizon College of Engineering.

I also declare that this project report is towards the partial fulfilment of the university
regulations for the award of the degree of Master of Business Administration by
Visvesvaraya Technological University, Belgaum.

I have undergone an industry project for a period of Twelve weeks. I further declare that this
report is based on the original study undertaken by me and has not been submitted for the
award of a degree/diploma from any other University / Institution.

Signature of Student
Place:
Date:

4
 ACKNOWLEDGEMENT

The successful completion of the project would not have been possible without
the guidance and support of many people. I express my sincere gratitude to MD.
ISRAR, Dist. Manager, BATA, Bengaluru, for allowing to do my project at
BATA.

I thank the staff of BATA, Bengaluru for their support and guidance and
helping me in completion of the report.

I am thankful to my internal guide Mr. SRIKANTH RAJATH K.G., for his

constant support and inspiration throughout the project and invaluable
suggestions, guidance and also for providing valuable information.

Finally, I express my gratitude towards my parents and family for their

continuous support during the study.

SUCHIT KUMAR
1NH18MBA82

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 TABLE OF CONTENTS

SL. NUMBER CONTENTS PAGE NUMBERS

1 Executive Summary 7

2 Theoretical Background Of The Study 8 – 22

3 Industry Profile &Company Profile 23 - 43

4 Application Of Theoretical Framework 44 -54

Analysis And Interpretation Of Financial

5 55 – 67
Statements And Reports

Learning Experience- Findings,

6 68 -71
Suggestions And Conclusion

7 Bibliography 72 - 75

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 Executive Summary

This project is mainly about the Brand Awareness and Brand Loyalty of Bata India Limited.
By measuring the Bata Brand Awareness will be able to find out how many potential
customers are there for Bata brand. This will show that customers ability to recall and
recognize the brand under different conditions and link to the brand name, logo, and jingles
and so on to certain associations in memory. It helps the customers to understand to which
product or service category the particular brand belongs to and what products and services are
sold under the brand name. It also ensures that customers know which of their needs are
satisfied by the brand through its products. This helps to identify and understanding their
target customer. Brand loyalty, in marketing, consists of a consumer's commitment to
repurchase or otherwise continue using the brand and can be demonstrated by repeated
buying of a product or service or other positive behaviors such as word of mouth advocacy.
By measuring the Brand loyalty, will be able to find out loyal customers for their brand and
will able to know what they want more from Bata brand. Favorable brand attitudes are the
determinants of brand loyalty – consumers must like the product in order to develop loyalty
to it. In order to convert occasional purchasers into brand loyalists, habits must be reinforced.
True brand loyalty exists when customers have a high relative attitude toward the brand
which is then exhibited through repurchase behaviour. Measurement of Brand Awareness and
Brand loyalty helps us to know how much Bata brand is popular in the market, and also their
performance level in the market. Bata is one of the trusted footwear all over the world, so this
survey will show how much consumers are satisfied with their advertisements and features on
different shoe products.

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THEORETICAL BACKGROUND OF THE STUDY

INTRODUCTION:

The main purpose of this project is to provide an approach for analyzing market structure in
terms of brand loyalty and brand awareness for the purchase of Bata products. Ideally, your
brand should be the first one that comes to your mind within specific product categories and
associated with key consumer benefits. Consumers should be able to identify which products
and services Bata brand offers. They should also be able to identify which benefits are
associated with the brand. It is also useful to segment the market, based on brand loyalty and
brand awareness and to understand the needs of loyal customers and potential awareness, as
well as their attitude towards key brand attributes.

The goal of this project is to create awareness among the consumers that there are different
brands in the product categories in which the brand operates, and also to measure the
consumer's behavior of repeatedly purchasing a specific brand over a certain period of time.
It is also useful to segment the market, based on brand loyalty and brand awareness and to
understand the needs of loyal customers and potential awareness, as well as their attitude
towards key brand attributes. A person's attitude toward a brand is relevant to the degree of
their brand loyalty.

Brand awareness is linked to consumers brand preferences, that salient brands are high in
both intentions to buy the brand and brand loyalty. It is a well known fact that a distinctive
brand identity is one of the most influential factors in determining how consumers
differentiate between similar products and services. Both tools are separate in practice, but
also used in combination with each other. It is the also the key to attracting new customers
and retaining existing customers.

The intent of this study is to provide insights of the needs of two groups of customers, repeat
buyers and operations of the brand, in order to help corporations develop appropriate
marketing strategies. This study was carried out in two stages:
(1) Segmenting the market into the two consumer groups.
(2) Analyzing the differences of the two groups based on the key factors that affect
consumption behaviors’.

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OBJECTIVES OF THE STUDY:

Primary objectives-

To measure the Brand awareness and Brand loyalty of Bata India Limited, Bangalore.

Secondary objectives-

• To find out the company’s position in the footwear industry in the market.

• To find how much Bata brands are aware in the market among the consumers.

• To determine the factors which is affecting Bata’s promotional activities?

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IMPORTANCE AND RELEVANCE OF THE PROJECT:

The two month project Training is very important for a student of MBA. This type of study
gives some practical knowledge to MBA students and practical knowledge is more useful
than theoretical knowledge for any one.

There is no certain formula for any particular problem but the aim of this study is to develop
the ability of decision – making. A right decision at the right time itself helps an organization
to run smoothly.

The training in any organization gives us an idea of different marketing activities and many
emphases is given on “Promotional Activities Aspect” and also it is seen how business is
taken tactfully when any problem comes to an executive. The way of problem solving, right
decision making and knowledge of different types of marketing activities gives much
importance to this study. Though only in 2 months, it was not possible to understand it so
deeply but overall ideas would be developed.

The survey was conducted to Measure the Brand Awareness and Brand Loyalty of Bata India
Limited, Bangalore.

This study is done to find out how much Bata brand is aware in the market and also to find
loyal customers of Bata. Bata operates in many different economic and cultural environments
around the world, dictating very different types of operations. Although Bata does not sell the
same shoes nor does it have identical stores in each country, customers will recognize
common elements to the Bata experience everywhere in the world.

The survey covers a wide range of activities and factors, which influence the many customers
to express their feelings about Bata brand. The samples of 60 respondents were taken to
represent Bata brand, and the result was not in the favor of Bata.

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SCOPE OF THE STUDY:

❖ This project is done to provide an approach for analyzing market structure in terms of
brand loyalty and brand awareness for the purchase of Bata products.

❖ Ideally, your brand should be the first one that comes to the minds within specific product
categories and associated with key consumer benefits. Consumers should be able to identify
which products and services Bata brand offers. They should also be able to identify which
benefits are associated with the Bata brand.

❖ The intent of this study is to provide insights of the needs of two groups of customers,
repeat buyers and operations of the brand, in order to help corporations develop appropriate
marketing strategies.

❖ The result of this study will help the Bata company to rectify their mistakes and to come
out with new plan and promotional activity which helps them to create a good position in
footwear industry again.

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LIMITATIONS OF THE STUDY:

Although all efforts have been made to study all types of population as compared to the topic
of study, universe size and sample size, findings of the study will be considered and will be
applied in Bangalore, only because perception of the customers varies in other place due to
socio-economic and educational background. At last but not the least the study will try to find
out real depth of the actual position of the brand.

A project is a work that an executive or the personnel does by their efforts in research. There
are many advantages that we can easily find and recommend in the company but like all
projects this project also have some limitations.

It is very difficult to influence and get right answer from old mentality customers. Therefore
the result is applicable to Bangalore region only. These findings may not have much
relevance in other regions of different from rest of the country.

All the conclusions suggestions & recommendations will be made in the feedback obtained
from the survey on the basis of responses given by the respondents

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BRAND AWARENESS:

Brand Awareness, it is an extent to which a brand is recognized by potential customers, and

is correctly associated with a particular product. It is expressed usually as a percentage of
target market; brand awareness is the primary goal of advertising in the early months or years
of a product's introduction. Brand awareness refers to customers' ability to recall and
recognize the brand under different conditions and link to the brand name, logo, and jingles
and so on to certain associations in memory. It helps the customers to understand to which
product or service category the particular brand belongs to and what products and services are
sold under the brand name. It also ensures that customers know which of their needs are
satisfied by the brand through its products.

Keller, 'Brand love', or love of a brand, is an emerging term encompassing the perceived
value of the brand image. Brand love levels are measured through social media posts about a
brand, or tweets of a brand on sites such as Twitter.

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BRAND AWARENESS PLAN-

The major components of a plan to develop brand awareness are:

• Identifying and understanding your target customers

• Creating a company name, logo, and slogans

• Adding value through packaging, location, service, special events, etc.

• Advertising

• After-sale follow-up and customer relations management

Targeting the right audience is crucial to your success. Of similar importance understands
that you need a plan along with specific actions that increase awareness of your brand
amongst your consumers. Throughout the entire process of creating a brand, it is of utmost
importance to consider how what you do will increase brand awareness.

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BRAND AWARENESS IMPORTANCE-

You may be asking yourself, is brand awareness really all that important? You may be saying
to yourself, I have plenty of customers and sales are decent, why bother? The answer is:
There are few things more worthwhile than investing time in your brand’s awareness.

BRAND AWARENESS CYCLE

It can play a major role in purchasing decisions. The reality is, the more aware consumers are
of your product and your brand, and the more likely they are to buy from you.

Among the challenges faced in selling pure maple products are:

• Do potential customers know you exist?

• Why pay more for Pure Maple vs. artificial syrup?

• Isn’t Vermont maple syrup better?

• Why pay more for your products rather than from a less expensive alternative?

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BRAND AWARENESS OF BATA-

Bata is the most trusted name in branded footwear. Bata India Ltd. helps the genuine
customers to claim against the quality issue of the shoe. Types of footwear Bata offered
includes Rubber, Canvas, Leather and Plastic footwear. Bata offers new products in the
market so that they can gain attraction of customers. Low-income consumers are often
unaware of the products companies wish to sell and are typically beyond the reach of
standard advertising and marketing strategies. Few consumers have consistent access to
technology such as radios, television and computers, and most travel infrequently to urban
centers. These limitations mean that information about new products of Bata is generally
acquired through informal; non-market channels and those social networks are often the most
powerful influences on a purchasing decision.

In order to create awareness for Bata shoes, the company is planning to focus on fun events,
promotions, contests, in-store merchandising. Global brands like Adidas, Nike, Reebok,
Puma and Lotto have also stepped up their retail expansion activities in right earnest for their
brand awareness. Indian majors like Bata, Liberty and Khadim have also responded
positively to the new challengers in a bid to retain market leadership. They have significantly
transformed their retail formats to become more lifestyle-oriented and are positioning
themselves as vibrant and contemporary Indian brands. Bata doubled the number of preparing
the collection, cut costs by outsourcing a lot of operations, and refreshed the collection with
chic designs without increasing the price, so that “Bata continued to remain very affordable”.

Bata’s strength lies in their family stores which have shoes for everyone. Bata positioning
their stores as the most knowledgeable in India. But Bata to make aware of their newly
arrived products in market they should come up with some good advertisements that
convince customers to buy their products and also put some attracted banners in busy areas.

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BRAND AWARENESS STRATEGY OF BATA-

Bata draw up a brand awareness strategy that can continue to update throughout the
development of their brand. To begin, they preliminary did research to determine how aware
the consumers are about Bata brand. Then, decide what they think and perhaps what others
suggest that might do to increase awareness and public recognition. Next, they compose a
strategy how they would like to go about this. For example, perhaps your focus may be on
your name, or perhaps the colors people associate with your brand, or even the way in which
you promote and sell your products. Finally, they decide upon how they would like to
execute these changes and increase brand awareness of Bata. Ultimately, they are able to see
a change in how consumers perceive Bata brand and the level of recognition of their brand
has acquired. For example, perhaps your consumer base expands to include of nearby towns
or attract a different core consumer.

Truly successful brand awareness often takes time to develop. First there is the time required
to develop an effective awareness effort. Then there is the time required for your message to
reach potential customers. A few customers will respond early, but most will take time to
hear about your products, make a decision to try them, and even later return for more.
Establishing customer loyalty takes the most time, as it requires extended experience with
your business and products. As a result of specific actions, positive brand awareness is
promoted. Brand awareness is essentially the impression people have of your brand. Do they
know your brand as reliable high quality? As well established and distinctive? As a bargain?
How is it that they have formed these perceptions? Perhaps from your logo? Or maybe from
the way your products are displayed or priced? These opportunities to make a good
impression are what are influencing your consumers‟ awareness of your brand.

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BRAND LOYALTY:

Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise

continue using the brand and can be demonstrated by repeated buying of a product or service
or other positive behaviors such as word of mouth advocacy. It is an extent of the faithfulness
of consumers to a particular brand, expressed through their repeat purchases, irrespective of
the marketing pressure generated by the competing brands.

A loyalty program should have a long enough timeframe to ensure its success. When a brand
launches a loyalty program, it is making a statement to its customers that the relationship is
valuable and that the brand appreciates it. Pulling back can be seen as the brand telling its
customers, “Nah, you’re not as important as we thought.” Or even worse: “Hey we didn’t
make enough money out of this so we’re ditching you.”

True brand loyalty exists when customers have a high relative attitude toward the brand
which is then exhibited through repurchase behavior. This type of loyalty can be a great asset
to the firm: customers are willing to pay higher prices, they may cost less to serve, and can
bring new customers to the firm.

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IMPORTANCE OF BRAND LOYALTY-

There are three main reasons why brand loyalty is important:

Higher Sales Volume –The average United States Company loses half of its customers every
five years, equating to a 13% annual loss of customers. This statistic illustrates the challenges
companies face when trying to grow in competitive environments. Achieving even 1% annual
growth requires increasing sales to customers, both existing and new, by 14%. Reducing
customer loss can dramatically improve business growth and brand loyalty, which leads to
consistent and even greater sales since the same brand is purchased repeatedly.

Premium Pricing Ability –Studies show that as brand loyalty increases, consumers are less
sensitive to price changes. Generally, they are willing to pay more for their preferred brand
because they perceive some unique value in the brand that other alternatives do not provide.
Additionally, brand loyalists buy less frequently on cents-off deals – these promotions only
subsidize planned purchases.

Retain Rather than Seek –Brand loyalists are willing to search for their favorite brand and
are less sensitive to competitive promotions. The result is lower costs for advertising,
marketing and distribution. Specifically, it costs four to six times as much to attract a new
customer as it does to retain an old one.

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CREATING BRAND LOYALTY-

Favorable brand attitudes are the determinants of brand loyalty consumers must like the
product in order to develop loyalty to it. In order to convert occasional purchasers into brand
loyalists, habits must be reinforced. Consumers must be reminded of the value of their
purchase and encouraged to continue purchasing the product in the future. To encourage
repeat purchases, advertisement before and after the sale is critical. In addition to creating
awareness and promoting initial purchases, advertising shapes and reinforces consumer
attitudes so these attitudes mature into beliefs, which need to be reinforced until they develop
into loyalty. For example, the most avid readers of a travel ad are those who just returned
from the destination. Ads reinforce a travelers perception and behavior. Remember, it is
easier to reinforce behaviors than to change them and the sale is just the beginning of an
opportunity to turn the purchaser into a loyalist.

A few more points to keep in mind…

Develop an unbeatable product - if you want to keep customers, make sure they can get
what they want from your product.

Give customers an incentive to repeat purchase- chance to win a prize, gift with a certain
number of proofs of purchase, in-pack discount coupon, etc.

Stand behind your product – if customers don’t trust the product, they won’t purchase it
again.

Know your trophy customers and treat them best of all –remember the rule that 80% of
sales will come from the top 20% of customers.

Make it easier to buy your brand than competing brands –availability and simplicity are
keys in today’s high-speed world. Customers appreciate convenience more than ever.

Go to your customers - bring the product to customers when possible.

Becomes a customer service champion –seek to serve the customer and they will
repeat purchase… again and again!

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BRAND LOYALTY TOWARDS BATA-

Bata, as a trusted footwear brand try to satisfy their customers by providing best quality of
products and services. There are many customers who are loyal to Bata products and services
because they always prefer Bata, and repurchase footwear from them. The image of Bata in
the Indian footwear industry is very high, so many customers they don’t look after the price
in case of Bata footwear as they have a belief about their service quality. Bata delivers what
they promise to their customers so many customers they recommend their friends and
relatives about Bata products and services. This shows the loyalty of customers towards Bata
brand.

Bata believe that the cost of acquiring customers is six times that of retaining them and,
therefore, ensuring loyalty is commercially important. Loyal customers are also important
because they provide the consistency of volume critical for mass production not to mention
the consistency of revenue required to run a business. As a result Bata brands look toward
loyalty programs to reward loyal customers and encourage retention.

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BRAND LOYALTY STRATEGY OF BATA-

Bata has taken three forms:

Creating customer satisfaction- Delivering superior quality products and services. Building
brand equity- The sum of the intangible assets of a brand. Factors that contribute to this are:
name awareness, perceived quality, brand loyalty, the associations consumers have towards
the brand, trademarks, packaging, and marketing channel presence.

Creating and maintaining relationships- Success with any of these strategies will result in
high levels of repeat purchase, insulation from price increases and improved responsiveness
to marketing communications by customers. There has been an evolution of marketing
thought and activity over this last decade. Initially, the quality movement placed customer
satisfaction as the ultimate goal of marketing programs. However, as satisfied customers were
shown to defect to other brands or providers at relatively high rates, strategists looked to
creating a greater commitment with the customer. Two ways to achieve this were to build
brand equity (primarily for consumer products) and to build relationships (primarily for
industrial products.) Brand equity used mass media advertising, corporate citizenship and
public events sponsorship to build a brand image. Relationship marketing sought to build
interdependence between partners and relied on one-to-one communications, historically
delivered through the sales force. With the growth of marketing databases and the Internet,
the ability to reach customers individually became a viable strategy for a wide range of firms
including consumer products companies.

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INDUSTRY PROFILE & COMPANY PROFILE
INDUSTRY INTRODUCTION
Indian leather industry is the core strength of the Indian footwear industry. It is the engine of
growth for the entire Indian leather industry and India is the second largest global producer of
footwear after China.
Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks, Nike,
Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and Colehaan are
manufactured under license in India. Besides, many global retail chains seeking quality
products at competitive prices are actively sourcing footwear from India.
While leather shoes and uppers are produced in medium to large-scale units, the sandals and
chappals are produced in the household and cottage sector. The industry is poised for
adopting the modern and state-of-the-art technology to suit the exacting international
requirements and standards. India produces more of gent’s footwear while the world’s major
production is in ladies footwear. In the case of chapels and sandals, use of non-leather
material is prevalent in the domestic market.
Leather footwear exported from India are dress shoes, casuals, moccasins, sport shoes,
horrachies, sandals, ballerinas, boots. Non-leather footwear exported from India is Shoes,
Sandals and Chappals made of rubber, plastic, P.V.C. and other materials. With changing
lifestyles and increasing affluence, domestic demand for footwear is projected to grow at a
faster rate than has been seen. There are already many new domestic brands of footwear and
many foreign brands such as Nike, Adidas, Puma, Reebok, Florsheim, Rockport, etc. have
also been able to enter the market.
The footwear sector has matured from the level of manual footwear manufacturing methods
to automated footwear manufacturing systems. Many units are equipped with In-house
Design Studios incorporating state-of-the-art CAD systems having 3D Shoe Design packages
that are intuitive and easy to use. Many Indian footwear factories have also acquired the ISO
9000, ISO 14000 as well as the SA 8000 certifications. Excellent facilities for Physical and
Chemical testing exist with the laboratories having tie-ups with leading international agencies
like SATRA, UK and PFI, Germany. One of the major factors for success in niche
international fashion markets is the ability to cater them with the latest designs, and in
accordance with the latest trends. India, has gained international prominence in the area of
Colors & Leather Texture forecasting through its outstanding success in MODEUROP.
Design and Retail information is regularly made available to footwear manufacturers to help
them suitably address the season's requirement. The Indian Footwear Industry is gearing up
to leverage its strengths towards maximizing benefits.

23
Strength of India in the footwear sector originates from its command on reliable supply of
resources in the form of raw hides and skins, quality finished leather, large installed
capacities for production of finished leather & footwear, large human capital with expertise
and technology base, skilled manpower and relatively low cost labour, proven strength to
produce footwear for global brand leaders and acquired technology competence, particularly
for mid and high priced footwear segments. Resource strength of India in the form of
materials and skilled manpower is a comparative advantage for the count

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HISTORY OF BATA:

1894-The T.& A. Bata Shoe Company is registered in Zelin, Czechoslovakia by the siblings
Thomas, Anna and Antonio Bata - the eighth generation of shoe-making Batas.
1895-Antonio leaves the Company to join the army, his sister Anna follows shortly after to
get married. Thomas Bata takes over the company leadership alone.
1897-Thomas introduces the “Batavia”, the first fabric shoe and with it production
mechanization.
1905-Production reaches 2,200 pairs per day, produced by 250 employees. Constant
innovation of footwear to meet customers’ needs. Thomas Bata’s motto is “Our customer is
our Master.”
1909-First export sales and first sales agencies in Germany, in the Balkans and in the Middle
East. Bata shoes are of excellent quality and are available in more styles than had ever been
offered before. Demand grows rapidly.
1917-Sales reach 2 million pairs per year produced by 5000 employees. Advanced production
equipment is imported. As the Company prospers so do the communities where it operates.
Bata creates stores, builds housing, schools and hospitals near factories.
1922-Following the First World War currencies are devalued and consumer purchasing
power is at an all time low. Bata cuts shoe prices by 50%; stores are flooded with customers
forcing the industry to follow the lead.
1925-The “Bata system” organizes operations in autonomous work shops with employee
profit sharing introduced since 1923. Each one in the company is an entrepreneur. The Bata
School of Work founded. It provides rigorous education and practical training to future Bata
managers.
1929-Introduction of customs tariffs. Bata responds by building factories in Swiss, Germany,
England, France, Yugoslavia, Poland, Holland, the USA and India By the early 1930s, Bata
is the world’s leading footwear exporter.
1932-Thomas Bata is killed in a plane crash on the way to visit a factory under construction
in Switzerland. Under the leadership of Thomas Bata's uncle, Jan Bata, the company
intensifies diversification into the production of tires, aircrafts, bicycles,

25
machineries. Thomas J. Bata, the young son of Thomas Bata, convenes the 1st
international congress of young Bata people.
1939-Bata operates 63 companies in various industries but footwear remains the core
business with 60 million pairs sold per year in more than 30 countries.
1940-Part of the Company management under the leadership of Thomas J. Bata starts to
operate from Bata, near Toronto, Canada.
1945-All Bata companies in Eastern European countries are nationalized by communist
governments. The Company starts rebuilding itself from the remaining entities located
outside Eastern Europe.
1960-The Company’s headquarters are officially relocated in Toronto under the leadership of
Thomas J. Bata.
1989-With the fall of Communism, Thomas Bata is invited by the new president ,Vaclav
Havel, to return to the Czech Republic and receives a hero's welcome.
A chain of shoe stores is opened with the headquarters in Zelin, and a small shoemaking
factory begins operations in Dolman Nancy.
1990-Creativity, product innovation and research for higher quality levels is the core of
Bata’s product development policy. The results are the international high standard, Bata
premium collection.
1995-Partnership develops in Eastern Europe. Bata stores reopen in Russia, Poland ,Croatia
and Slovenia.
1999-To adjust to the market evolution Bata undertakes a major reorientation from
manufacturing to designing, marketing and distribution.
2001-Thomas G. Bata, the founder’s grandson becomes the Group’s Chairman. Anew
international structure is implemented around 4 meaningful business units (MBUs) to give
more focus to the business and gain synergies within each region, especially in sourcing and
product development.
2002-As a part of re-inventing its core competencies, Bata shoe innovation Centres open
around the world to focus on the development of shoes with exclusive comfort technology
features and design.
2004-New steps into China with the opening of the Bata procurement centre in Guangzhou
and a distribution partnership for the opening of Bata retail stores.
2006-Start of the 262 acre, Riverbank Township construction project to modernize the
Batanagar factory complex near Kolkata. It is expected to be completed by 2011 with 2500
modern houses for employees, a large hospital, a school, and IT Park, a hostel and residential
along the riverside. Launch of the branded business division to consolidate our existing
worldwide branded business activities into a leading industrial and professional footwear
company.

26
2008-The Bata emerging markets unit was created in order to maximize the synergies of all
operations in Latin America, Africa, Asia and India.
2009-The European shoe innovation centre (SICE) in Padova, Italy launched this year. As
well as conducting research into new innovations, materials and design for our shoe
technologies, SICE design and sources top quality products from the best worldwide
suppliers for all our European stores

27
COMPANY PROFILE:
The company that evolved into BATA SHOE ORGANIZATION was first registered in the
town of Zelin, Czheclovakia on August 24th 1894. It was found by THOMAS BATA who
was the grandfather of present president T.G.BATA.
Although the Bata name had been a part of that tradition for 8 generations, spanning three
hundred years Thomas Antonius and Anna Bata wanted to improve conditions for themselves
and for shoemakers of the future. The credo “Our Customer Our Master” served as the
guiding principle for Bata Shoemaker and employers.
The young company overcomes many difficulties. In order to meet growing demands during
the early years, new production machinery was found in other countries and innovative shoe
making techniques were devised skilful and successful Bata employees. Bata’s reputation as
innovative industry leader has been maintained ever since. In every 1920‟s Bata established
new companies in Poland, Denmark, Yugoslavia, Holland, UK and USA.
Bata is one of the world’s widest reaching companies, with operations in 68 different
countries. Bata companies strive to listen to the customers in their local markets and clearly
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. Each business unit is entrepreneurial in nature, and can quickly adapt to
changes in the marketplace and seize potential growth opportunities.

28
OVERVIEW
one million customers per day.
Employs more than 40000 people.
Operates 4600 retail stores.
Manages a presence in over 50 countries.
Runs 40 production facilities across 26 countries.
Serves 1 lakh customers per day.
Employs more than 8900 people.
Operates 1100 retail stores.
Runs 5 production facilities across India.
Network of 1600 retail stores.

Bata International serves customers in much of Asia, the Pacific and Africa through its
3,000 stores and many dealers. It is supervised from 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 centre 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 operates.

29
GOAL OF BATA-

VISION- To provide good quality shoes at an affordable price. By keeping in mind the
comfort that needs to be there and providing new designs with it.
MISSION- Introduction of a strong shoe line targeted to various market segments to
maintain leadership through increased market share.
QUALITY POLICY- All products produced at the company’s manufacturing unit are
checked for quality adherence before they leave the factory premises. The techniques used
for quality checks include sampling and physical test. The merchandise is again physically
tested for quality adherence by the store’s manager at each retail outlet.

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 life style as well as fashion trend.
• Achieve an average 55% margin in each category
• Innovative ideas or system for better management of merchandise distribution by
maintaining 4 times stock turn.

STRATEGIES-
• Penetration to new & targeted market segments through introduction of shoe lines as
per life styles with supportive promotion activities
• Defined number of lines, assortment & quantity for each store according to
merchandise classification & store profile in order to increase efficiency in
distribution.
• Identification of loopholes in cost structure to increase production efficiency.
• Detail analysis of price points of entire shoe line in order to achieve maximum
margin.
• Detail analysis of departmental work flow & bringing necessary changes for
efficiency better coordination with other departments.

30
PRODUCT PROFILE:

(a)BATA HAWAII- Bata Hawaii is a well-known brand with a complete range of things for
men, women and children. Bata Hawaii is synonymous of comfort and durability at a very
affordable price.

(b)BATA ALL SEASONS- Bata all seasons brand is functional, fashionable footwear,
primarily offering men and women’s sandal and chappal’s. The brand caters to men and
women looking for trendy footwear with a lot of style at a little price. Bata all seasons is
convenient product for all those who are looking for an affordable and fashionable shoe to
wear throughout the year.

31
(c)SANDAL BY BATA WATER PROOF-The brand caters to men and women looking for
affordable, comfortable footwear at little price. Sold in larger volume during the rainy season.
Sandal is a convenient product for durable water proof shoe to wear in summer and during
the monsoon seasons.

(d)POWER ATHLETIC FOOTWEAR-Power international is athletic shoe brands owned

by the Bata shoe organization and are currently offered in over 40 countries around the
World. Power brand offers a range of priced contemporary athletic footwear.

32
(e)BUBBLE GUMMERS-Fashionable footwear for children. Bubble gummer’s footwear
responds to the needs of both parents and children’s and has consistently offered the younger
customer quality, fashionable footwear with a focus on comfort, durability and an element of
fun, ail for excellent value. Bubble gummer represents a wide range of children’s footwear
that includes pre-walker, dress outdoor, casual, fashion, athletic, sandals and boots. Bubble
gummers shoe are sold in over 40 countries as leading children’s footwear brand.

(f)NORTH STAR-Fashionable casual leather and textile footwear North Star bean as
comfortable and affordable leisure footwear and has recently strengthened its fashion offering
with the current trend towards retro sneakers. North Star American leisure style influences,
typically demonstrated be people aged 16 to 30. It has become a fashionable comfortable
leisure brand.

(g)HUSH PUPPIES-Comfort shoes technologically designed for men and women. Hush
puppies are distributed in over 80 countries around the world. Hush puppies are truly
comfortable shoe that provides long lasting shock absorbing comfort and excellent fit by
conforming to foot. Bounce technology makes walking easier by storing and releasing
energy, propelling.

33
(h)MARIE CLAIRE-Marie Claire is a well-established brand of women’s elegant evening
and fashion footwear, made with high quality materials and manufacturing. The brand offers
footwear for the fashion conscious and up to date trends blend with the promise of comfort
and affords ability. The brands cater to primarily urban women providing high fashion dress
shoe and sandals.

34
(i)WEIN BRENNER-Wien Brenner brand provides outdoor footwear for young men and
women. Wien Brenner is casual style, comfortable and durable. The characteristics of the
brand embody the outdoors. The brand‟s construction, materials, rugged character and
durability allow customers to enjoy the outdoors in comfort and style, all at high quality and
value. Shoes compose the product line and boots designed for outdoors lifestyle and Casual
Street fashions.

Thus Bata's well known brands include Power, Bubble-Gummers, Marie-Claire, Hawaii,
Naughty boy, Sandal, North-Star etc. International brands such as Hush Puppies, Nike, Lotto,
and Dr Scholl are sold under manufacturing and licensing agreements. The company has
more than 1000 shoe designs and caters to all the segments. Over 60% of sales come from the
men's range, while children's and women’s range account for about 20% each. In women's
segment the Sun-drop range of casual ladies wear in the popular range has done well in the
market and registered a strong growth of 500% in F12/2000. The brand is being endorsed by
film star Rani Mukherjee. Bata also markets sportswear, readymade garments, hosiery, and
other footwear accessories like socks, shoe polish, etc. The company also exports its products
to countries like Germany, Australia, USA, UK, Holland, Denmark, New Zealand, France
and Canada. It exports about 4mn pairs of shoes in a year.

35
REVIEW OF LITERATURE:

Literature Review is the documentation of a comprehensive review of the published and

unpublished work from secondary sources of data in the areas of specific interest to the
researcher.
The main aim is to find out problems that are already investigated and those that need further
investigation It is an extensive survey of all available past studies relevant to the field of
investigation. It gives us knowledge about what others have found out in the related field of
study and how they have done so.
A successful brand is an identifiable product, service, person or place augmented in such a
way that the buyer or user perceives relevant, unique added values which match their needs
most closely. Furthermore, its success results from being able to sustain these added values in
the face of competition. Successful brands deliver benefits to satisfy customer needs. These
needs include rational needs (such as features, packages or the price of a brand) and
emotional needs (such as prestige, distinctiveness, style or the social reassurance of a brand).
Brand loyalty measurement has not flourished in the marketing literature. A person's attitude
toward a brand is relevant to the degree of their brand loyalty. Brand awareness is linked to
consumers brand preferences, that salient brands are high in both intentions to buy the brand
and brand loyalty. It is a well known fact that a distinctive brand identity is one of the most
influential factors in determining how consumers differentiate between similar products and
services.

36
SWOT Analysis of BATA

Bata is a global footwear and fashion accessory manufacturer and retailer, headquartered in
Lausanne, Switzerland. Bata was founded in 1894 in Zlin, the Czech Republic by Tomas
Bata. Bata is still owned by the Bata family and expanded in over 70 countries. India has
been a preferred market for Bata with a presence in over 500 cities across 1265 retail stores.

Strength in the SWOT Analysis of BATA :

Global Presence: Bata is present in more than 70 countries, with production facilities in 27
countries. This makes Bata a global player and hence not dependent on a single market.

Market Penetration: Bata has penetrated the market really 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.

Strong Distribution Network: Bata has a very strong distribution network throughout the
world with about 5000 retail stores worldwide out of which more than 1200 are located in
India.

Excellent positioning: Bata has positioned itself really well as a fashionable yet affordable
footwear brand.

Cost Advantage: Its quite clear that Bata has the cost advantage and is able to manufacture a
huge range of footwear’s at a very affordable price.

37
Weakness in the SWOT Analysis of BATA :

Limited market share due to competition: Bata has been subjected to high competition
which doesn’t allow Bata to have a high market share. Bata’s market share has been reduced
to 6 per cent.

Falling Sales: Bata India’s year on year sales has been on a downturn. Although the
company’s profits have been increasing.

Low quality image: Because of the low pricing of Bata shoes, most consumers think the
quality of the shoes will be low as well. This is a typical price quality
approach of positioning.

Opportunity in the SWOT Analysis of BATA :

Footwear as a Fashion statement: Footwears are now considered fashion statement and
hence sales are bound to increase. This creates an opportunity for Bata to enhance its
revenues.

Growing Rural Market: Bata has a strong presence in the emerging nations. Rural market
in the emerging nations is growing at a high rate. Bata needs to take advantage of the demand
created in the rural market. This will help in improving its bottom-line.

Growing demand in the premium footwear category: There is a growing demand in the
premium footwear industry, especially in the emerging nations where the standard of living is
growing.

Threat in the SWOT Analysis of BATA :

Intense competition: Bata is facing intense competition from other leading footwear brands
in all the categories and hence enlarging its customer base and market share is becoming
difficult.

Duplicity in the market: The Footwear industry is also subjected to duplicity in the market,
which not only decreases sales but also weakens the brand name.

38
MARKETING STRATEGIES:

Market-scope strategy choices-

1. Single-Market Strategy
2. Multi-market Strategy
3. Total-market Strategy

Among the three choices Bata has chosen and uses „Total-Market strategy’s they serve all
classes of people with their shoes ranging from 30/--2195/-. The specifics of the strategy is
provided below-

Definition: Serving the overall market with one or some other kind of
offerings.
Objective: To diversify the risk of serving only one market.

Requirements:

• Carefully selecting all the segments and providing offerings to all.

• Avoid confrontation with companies serving the entire market.

Expected Results:

• Higher Sales.
• Higher Market Share.

Market-Geography Strategy choices-

1. Local-Market Strategy
2. Regional Market Strategy
3. National Market Strategy
4. International Market Strategy

Among the market-Geography Strategies Bata follows the 'National-

Market Strategy‟ as they distribute their product to the whole of world using their own and
Danish's distribution channel.

Definition: Operating nationally.

39
Objective: To seek growth.
Requirements:

• Top management commitment.

• Capital Resources.
• Willingness to take risks.

Expected Results:

• Increased growth.
• Increased market share.
• Keep up with competitors

Market-Entry Strategy choices:

1. First-In Strategy
2. Early-Entry Strategy
3. Laggard-Entry Strategy

Among the Market-Entry choices, Bata Bangladesh uses „First-

In strategy which is characterized by the following:

Definition: Entering market during the introduction stage. Two modes of entry are feasible:
Conventional marketing strategy
Initiator- Entering market with unconventional marketing strategies

Objectives: To understand the market first and reap the profit at the beginning and
waiting for the competitors and strike them with good lowering price and improved
quality. At the same time it offers variety of products.

Requirements:

• Market research ability.

• Production capability

40
Expected results:

• Putting market on a new growth path.

• Increased profits.
• Some growth opportunities.

Product Strategy choices:

1. Product-Positioning Strategy
2. Product Repositioning Strategy
3. Product-Overlap Strategy
4. Product-Scope Strategy
5. Product-Design Strategy
6. Product-Elimination Strategy
7. New-Product Strategy
8. Diversification Strategy

Among the product strategies Bata has used 'Product-Positioning

Strategy' and 'Diversification Strategy' which is characterized by the following:

Product-Positioning Strategy:

Definition: Placing a brand in that part of the market where it will have a favorable
reception compared with competing brands.

Objectives:

• Position product in market so that it stands apart from competing brands.

• To position the product so that it tells customers what you stand for, what you are,
how you would like customers to evaluate you.

Requirements:

• Use of marketing mix variables (design and communication efforts).

41
 • Successful management of a single brand requires positioning the brand in the market
so that it can stand competition from the toughest rivals and maintaining its unique
position by creating the aura of a distinctive product.

• Successful management of multiple brands requires careful positioning in the market

so that multiple brands do not compete with nor cannibalize each other. Thus it is
important to be careful in segmenting the market and to position an individual product
as uniquely suited to a particular segment through design and promotion.

Expected Results:

Meet as much as possible the needs of specific segments of

the market. Limit sudden change in sales. Make customers
faithful to the brands.

Distribution Strategy:

Definition: Developing unfamiliar products and markets through-

• Concentric diversification (products introduced are related to existing ones in term of

marketing or technology),
• Horizontal diversification (new products are unrelated to existing ones but are sold to
the same customers), and
• Conglomerate diversification (products are entirely new).

Objectives: Diversification strategies response to the desire for-

• Growth when current products/markets have reached maturity,

• Stability by spreading the risks of fluctuations in earnings,
• Security when the company may fear backward integration from its major customers,
• Credibility to have more weight in capital markets.

42
Requirements: In order to reduce the risk inherent in a diversification strategy, a
business unit should-

• Diversify activities only if current product/market opportunities are

limited, Have good knowledge of the area in which it diversifies,
• Provide the products introduced with adequate support, and
Forecast the effects of diversification on existing lines of
products.

Expected results:

• Increase in sales.
• Greater profitability and flexibility.

Pricing Strategy choices

For new products:

(1)Skimming Pricing
(2)Penetration Pricing
At times Bata Shoe Company used 'Penetration Strategy' which is
characterized by the following:
Definition: Setting a relatively low price during the initial stages of a products life.
Objectives: To discourage competition from entering market by quickly taking large
market share and by gaining cost advantage by realizing economies of scale.
Requirements:

• Products must appeal to a market large enough to support the cost advantages.
• Demand must be highly elastic in order for firm to guard its cost advantage.

Expected Results:

• High sales volume and large market share.

• Low margin on sales.
• Lower unit costs relative to competition due to economies of scale.

43
Application Of Theoretical Framework
RESEARCH METHODOLOGY

Research is an Endeavour to discover answers to intellectual and

practical problems through the application of scientific method. Research is the systematic
process of collecting and analyzing information (data) in order to increase our understanding
of the phenomenon about which we are concerned or interested. It is an extensive survey of
all available past studies relevant to the field of investigation. It gives us knowledge about
what others have found out in the related field of study and how they have done so. A
research methodology is the specification of methods and procedures for acquiring the
information needed to structure or to solve problems. It is the overall operational pattern or
frame work of the project that stipulates what information is to be collected from which
sources, and by what procedures. If it is a good design it will ensure that the information
obtained is relevant to the research problem and that it was collected by objective and
economical procedures. A research design might be described as a series of advance
decisions that, taken together, from a specific master plan of model for the conduct of the
investigation. Although research designs may be classified by many criteria, the most useful
one concerns the major purpose of the investigation.

Type of research- Exploratory research or Formulative research.

The research has been conducted within the data and information
available to gain familiarity with the problem, to generate new ideas or to make a precise
formulation of the problem. The current scenario is observed and an attempt has been done
to relate the various variables.

The major purposes of exploratory studies are the identification of

problems, the more precise formulation of problems (Including the identification of relevant
variables), and the formulation of new alternative courses of action. An exploratory study is
often the first in the series of projects that culminate in one concerned with the drawing of
inferences that are used as the basis of management action. That is, an exploratory study is
often used as an introductory phase of a larger study and results are used in developing
specific techniques for the larger study. Secondary sources of information, as used in the
section, are the rough equivalent of the “Literature” on the subject.

44
RESEARCH DESIGN:

The research design states that the conceptual structure within which the
study should be conducted is descriptive in nature. The researcher used descriptive study to
describe the awareness of Bata among the consumers in market and to find loyal customers of
Bata and also to find out its demand, efficiency, brand image and its features.

Sampling Unit- The sampling unit selected as respondents who are the customers in
the market buy footwear of Bata brand from different stores of Bangalore.

Sampling Size- The sample has taken as 80 for collecting accurate information but
received only 60 samples from the respondents, so 60 is the sample size taken for
measuring the awareness and loyalty of Bata brand.

45
LIMITATIONS:

• Brand awareness dimension was not found significant in the tested model.

• Brand loyalty help the marketing researchers and marketing managers to understand
the market.

• These measures also help out to segment the market.

• The measures help to know the consumption frequency.

• Brand awareness measures the accessibility of the brand in memory.

• These measures help the Consumers rely only a few piece of information with which
they feel confident to help them decide how the brand might perform.

• It is a well known fact that a distinctive brand identity is one of the most influential
factors in determining how consumers differentiate between similar products and
services.

46
DATA COLLECTION:

The data collected are primary data among the various customers to find out the level
of awareness and loyalty of Bata among different footwear, and its demand based on
prescription and its features in various angles.

Secondary data was collected using internet and books.

METHOD OF DATA COLLECTION: As survey is best suited for descriptive

research so the research conducted directly for individual respondents through
questionnaire methods. The interview is structured where the questions asked in a
sequence and prescribed manner. Therefore the received data is about the
respondent’s awareness of Bata and loyalty towards Bata and there is lesser degree of
inaccuracy in survey method.

47
SAMPLING DESIGN:

The below given questions about brand awareness and brand loyalty contains
sampling-Which single company comes to mind first in the shoe

market?

Which other companies come to mind?

Which company do you view as the leader in the shoe market?

Are you aware of BATA‟s offerings in the shoe market? If so, to what extent?
Please list the types of services that you know BATA to offer in the shoe
market.

What three words best describe BATA‟S position in the shoe

market? Overall, how satisfied are you with BATA shoes?

How likely are you to continue to choose/repurchase BATA shoes?

How likely are you to recommend BATA shoes to a friend/associate?

48
REVIEW OF LITERATURE

1.The impacts of brand experiences on brand loyalty: mediators of brand

love and trust
Chao-Chin huang

(Department of Marketing and Logistics, MingDao University, Changhua, Taiwan)

Abstract

Purpose

Prior studies on brand relationships tend to overlook the mediator(s) between the
relationships between brand experience and brand loyalty. Hence, the main purpose of this
paper is to examine these mediating roles of brand love and brand trust on the brand
experience and brand loyalty relationships. While the literature does not examine the distinct
dimensions of brand experience and brand loyalty, this study fills up this gap and examines
their detailed dimensions and effects on brand loyalty.
Design/methodology/approach

A total of 237 valid questionnaires on mobile phone brands were collected from respondents
aged between 18 and 30, and analyzed using the partial least squares method.

Findings

Sensory experience is the major driver of brand love. Sensory experience mainly drives
customers’ brand trust, while intellectual experience has no effects on brand trust. Brand love
is the main mechanism in developing customers’ behavioral loyalty, so does brand trust in
shaping their attitudinal loyalty. Brand love and brand trust have the mediating effects on the
relationships between brand experience and brand loyalty.

2.Brand loyalty and loyalty programs

Elvira Tabaku and Mirela Zerellari
Romanian Economic and Business Review

Abstract

Global and competitive markets have led businesses to cope with many challenges.
Technology development has brought many businesses to deal with advantages which last
less than before. It becomes increasingly difficult for a company to differentiate its products
as they are perceived as easily imitable and fairly standard. Brand and brand loyalty come as
a solution for creating a strong and long term competitive advantage for any business. The
main objective of this paper is to examine the construct of brand, brand loyalty and loyalty

49
programs. It uses secondary data from the existing literature to describe the significance of
each of these constructs and their implementation on the business. It explains the benefits
derived for the businesses and customers from having a strong brand and creating and
developing brand loyalty. It also describes the use of loyalty programs and the benefits
derived from these programs. The findings demonstrate that brand and brand loyalty are
important means on the activities of today businesses. They should be studied thoroughly and
empirically not only in developed but also on developing countries and in different sector of
the economy. Loyalty programs should be applied properly in order to gain profitability.

3.REVIEW OF BRAND LOYALTY LITERATURE

Hülya Cengiz

Karabuk University

Abstract
This paper examines the academic literature on brand loyalty and presents a comprehensive
bibliography on the subject via classification schemes molded in the examination. With this
purpose, this study scanned seven different online databases and accessed about 400 studies
published between 2001 and 2015. Among these, this study examined 140 empirical research
papers, the primary research topic of which is brand loyalty and classified them according to
various beneficial factors. Classification schemes were formed by examining three 5-year
periods (2001–2005, 2006–2010, and 2011–2015). We classified the research papers into
three categories on the basis of their approaches to measuring brand loyalty: the behavioral
approach, the attitudinal approach, or the multi-domain approach that combines the first
two approaches. A yearly examination reveals that more studies adopted the multi-domain
approach than either of the two other singular approaches. As the only study with an
inclusive review of all the research studies on brand loyalty between 2001 and 2015, this
study provides a comprehensive resource to marketing practitioners and researches interested
in brand loyalty to aid them in their work.

4.The Relationship of Perceived Value, Service Quality, Brand Trust, and

Brand Loyalty
Muhammad ADAM
Syiah Kuala University, Indonesia
The concept of loyalty has evolved as an important issue in the world of marketing as
companies are focusing their strategy in retaining customers and increasing their sales. The
purpose of this study is to re-evaluate the involvement of various factors related to the
perception of value, service quality, brand trust and brand loyalty in the industry of mobile
phones through literature review and examination of previous research. Some studies have
found that the observed variables are the key drivers of brand loyalty. However, other

50
opinions are also presented for their different perspectives and a broader view of the research
topic.
Researchers interested in brand loyalty to aid them in their work.

5.A Review of the Literature on Brand Loyalty and Customer Loyalty

Faridah Ishak
Graduate School of Business University Utara Malaysia Sintok, Kedah.

Abstract

Brand Loyalty or Customer Loyalty? Brand Loyalty and Customer Loyalty are two concepts
that have been delved into by researchers as they are two very important dimensions in
marketing. Brand Loyalty is a biased behavioral response expressed over a period of time. It
implies a consistent repurchase pattern of the brand as a result of positive affection towards
the brand (Mellens, DeKimpe and Steenkamp, 1996). Brand loyalty theories suggested that
loyalty to brands is the outcome of several factors comprising affective, behavioral and
attitudinal dimensions. Customer loyalty as defined by Oliver is a deeply held commitment to
re-buy or re-patronize a preferred product or service consistently in the future despite
situational influences and marketing efforts having the potential to cause switching behavior.
This article discusses the difference between Brand Loyalty and Customer Loyalty and the
methods used by researchers in academic research.

Brand Loyalty in marketing has been associated with a posi6tive perception by consumers
towards the brand while Customer Loyalty has been associated with the spending power of
consumers induced by various loyalty programs. However research in both Brand Loyalty
and Customer Loyalty uses the same multi-dimensional constructs of affective and behavioral
approach.

5.BRAND LOYALTY AND LOYALTY PROGRAMS.

Elvira Tabaku, Mirela Zerellari
(Mersini)
Abstract
Global and competitive markets have led businesses to cope with many
challenges. Technology development has brought many businesses to deal with
advantages which last less than before. It becomes increasingly difficult for a
company to differentiate its products as they are perceived as easily imitable and
fairly standard. Brand and brand loyalty come as a solution for creating a strong
and long term competitive advantage for any business. The main objective of this

51
paper is to examine the construct of brand, brand loyalty and loyalty programs. It
uses secondary data from the existing literature to describe the significance of each of
these constructs and their implementation on the business. It explains the benefits
derived for the businesses and customers from having a strong brand and creating
and developing brand loyalty. It also describes the use of loyalty programs and the
benefits derived from these programs. The findings demonstrate that brand and
brand loyalty are important means on the activities of today businesses. They should
be studied thoroughly and empirically not only in developed but also on developing
countries and in different sector of the economy. Loyalty programs should be applied
properly in order to gain profitability.

6.CUSTOMER-BASED BRAND EQUITY: A LITERATURE REVIEW

Chieng Fayrene Y.L.
Curtin University of Technology, Malaysia,
ABSTRACT
Brand equity is a concept born in 1980s. It has aroused intense interest among business
strategists from a wide variety of industries as brand equity is closely related with brand
Loyalty and brand extensions. Besides, successful brands provide competitive advantages
that are critical to the success of companies. However, there is no common viewpoint
emerged on the content and measurement of brand equity. Brand equity has been
examined from financial and customer-based perspectives. This paper will only study the
customer-based brand equity which refers to the consumer response to a brand name. The
aims of the study are to review the dimensions of customer-based brand equity by
drawing together strands from various literature and empirical studies made within the
area of customer-based brand equity. A conceptual framework for measuring customer based
brand equity is developed to provide a more integrative conceptualization of brand
equity

52
7.Brand loyalty
Mulugeta Z Forsido
ABSTRACT
Quantitative approach is used to quantify the relationship between dependant and
independent variables based on the proposed theoretical model that delineates the
relationships between dependant variable brand loyalty and the independent variables
customer satisfaction, perceived quality, brand experience, brand image, brand switching cost
and product involvement.
Data – In total 200 responses were collected through a structured interview from Uppsala
University, Uppsala central train and bus station and two big shopping centers in Uppsala (S:
t per galleria and Forum galleria). Apple and Sony Ericsson brand users are interviewed in
the data gathering process, 100 respondents for each brand.

8.Consumer Brand Loyalty: A Study on FMCGs-Personal Care Products

in Rural and Urban Areas of India
Mr. Jyoti Pradhan1, Dr. Devi Prasad Misra
1Assistant Professor, Department of Management, Surana College, #16, South End Road,
Basavanagudi, Bangalore - 560 004 Karnataka, India 2Professor, Department of Business
Administration, F.M.University, Balasore, Odisha, India
Abstract:
The globalization of world economy has increased competition, locally as well as
internationally. In such competitive business milieu, organizations need a distinguishing
element that will keep consumers identifying and buying their products. With increase in
competition annually, the traditional sources of competitive advantage like leadership in price
and quality is not enough to ensure the success of a product anymore in both rural and urban
markets. In other words, Company executives are recognizing that the true worth of the
organization is not the tangible assets it owns, but the value ascribed to the brands it is
developing to satisfy the needs of the consumer. This study analyzes brand loyalty for
FMCGs in rural and urban markets. For this comparative study, one rural district of Odisha
and Bangalore urban district were chosen. The relationship between demographic variables
on the brand loyalty of the consumers and consumer’s switching factors in respected selected
product category was made. A randomly selected sample of 200 each from Keonjhar district,
Odisha and Bangalore urban district, Karnataka were selected for this study. To indicate the
amount of correlation between the variables, Chi-square test was used. Results show that
among the variables namely gender, age, education and occupation, only age and education
have the most significant impact on consumer’s brand loyalty in urban areas and in rural
areas. These variables were found insignificant after the study.

53
9.Determinants of Brand Loyalty: A Study of the Experience-
Commitment-Loyalty Constructs

Vish Maheshwari

Staffordshire University

Abstract
Marketing strategies for brands have shifted its focus on relationships and value creation that
directly links to brand loyalty, is the main focus of this paper and two key factors: brand
experience and brand commitment, within automotive sector, are investigated to examine
relative relationships. These factors have already been established to have a connection to
brand loyalty. However, as brand commitment consists of both affective and continuance
commitment, it is still somewhat unclear about which of these aspects of commitment has the
greatest, or most important impact on brand loyalty. Moreover, the existing research and
literature surrounding the brand experience construct is extensive. However, it is not entirely
clear regarding this construct's relationship to brand loyalty. While some authors claim that it
affects brand loyalty directly, others have found that it is a dependent variable, which, alone
does not have any immediate effect on brand loyalty. This study also investigates a
connection between brand experience and brand loyalty as far as automotive sector is
concerned, both with and without commitment as a mediator. As a result, continuance
commitment was found to not have any considerable impact on the consumer's loyalty
towards a brand, it is assumed that factors such as price and other available alternatives dos
not influence this desire to maintain said relationship.

54
ANALYSIS AND INTERPRETATION:

Question 1-Familiarity with Bata shoes

FAMILIARITY RESPONSES

NEVER HEARD 5

HEARD,NEVER BUY 8

BUY OCCASIONALY 26

BUY ON REGULAR BASIS 21

TABLE 1: Familiarity with Bata shoe

NEVER HEARD
HEARD NEVER BUY
BUY OCCASIONALY
BUT ON REGULAR BASIS

Figure 1: Familiarity of Bata Brand

Interpretation-43% of the customers buy Bata products occasionally, 35% customers

buyon regular basis, and 13% customers have but never buy, 8% never heard.

55
Question 2-Attributes associates Bata shoes

ATTRIBUTES RESPONSES

STYLE 9

DU RABILITY 28

C OMFORT 17

PRICE 10

OTHERS 6

Table 2: Attributes associates Bata shoes

Sales

9% 13%
Style
Comfort
24% Price
40% Durability
Others
14%

Figure 2: Attributes associates Bata

Interpretation-40% customer’s associate’s durability for Bata products, 24%
associatescomfort, and 14% associate’s price and 13% associates style, 9 % associates
others.

56
Question 3-Loyalty of customers

LOYAL CUSTOMERS RESPONSES

MORE THAN 20 YEARS 13

BETWEEN 10-2 0YEARS 19

BETWEEN 1-10YEARS 22

N EVER USED 6

Table 3: Loyalty of customers

Responses

10%
22%
MORE THAN 20 YEARS
BETW EEN 10-2 0YEARS

36% BET WEEN 1-10YEARS

N EVER USED
32%

Figure 3: Loyalty of customers

Interpretation-37% of the customers are using Bata products for 10 years, 32% of
thecustomers are using for 20 years and 22 % of the customers are using for more than 20
years and 10 % customers they have never use d Bata products.

57
Question 4-Suitable Shoe brand

SUITABLE SHO E BRAN D RESPONSES

BATA 21

REEBOK 19

ADDIDAS 12

NIKE 6

KHADIMS 2

Table 4: Suitable shoe brand

Responses

3%
10%
BATA
35% REEBOK
20% ADIDAS
NIKE
KHADIMS
32%

Figure 4 : Suitable shoe brand

Interpretation-35% of the customers are suitable with Bata , 32% customers are suitablewith
Reebok and 20% of t he customers are suitable with Abdias , 1 0% customers are suitable
with Nike, 3% customers are suitable with Khadims.

58
Question 5-Satisfaction level for sports wear

SATISFACTION LEVEL FOR SPORTS WEAR RESPONSES

FU LLY SATISFIED 19

SATISFIED 14

N OT SATISF IED 27

Table 5: Satisfaction level

RESPONSES

32%
FULLY SATISFIED
45%
SATISFIED
NOT SATISFIED

23%

Figure 5: Satisfaction level

Interpretation-45% customers are not satisfied with Bata sports w ear, 32% are fully
satisfied and 23% are not at al l satisfied with Bata s ports wear.

59
Question 6-Variety of items and services while shopping in Bata stores

VARIETY OF ITEMS & SERVICES RESPONSES

FULLY SATISFIED 29

SATISFIED 17

NOT SATISFIED 14

Table 6: Variety in Bata stores

RESPONSES

23%
FULLY SATISFIED
49% SATISFIED
NOT SATISFIED

28%

Figure 6: Variety in Bata stores

Interpretation-48% customers are fully satisfied with the variety of items and services in
Bata stores, 28% are satisfied and 23% are not satisfied.

60
Question 7-Cost of Bata shoes affect purchasing choices

COST AFFECT RESPONSES

MORE EXPENSIVE 19

LESS EXPENSIVE 7

PAYABLE RANGE 34

Table 7: Cost affect of Bata shoes

RESPONSES

32%
MORE EXPENSIVE
LESS EXPENSIVE
56%
PAYABLE RANGE

12%

Figure 7: Cost affect of Bata shoes

Interpretation-5 7% customers are satisfied with the cost of Bata product s,

32%customers feel they are more expensive and 12% feel the Bata products are less
expensive.

61
Question 8-Advertisements capture the best qualities of Bata products and services

QUALITY OF ADVERTISEMENTS RESPONSES

VERY GOOD QUALITY 7

GOOD QUALITY 17

POOR QUALITY 36

Table 8: Advertisements quality

RESPONSES

12%

VERY GOOD QUALITY

28% GOOD QUALITY

60% POOR QUALITY

Figure 8: Advertisements quality

Interpretation- 60% customers think the quality of advertisements for Bata products
andservices are poor, 28% think they are good, and 12% think they are very good.

62
Question 9-Chances of re commending Bata shoes to friend s and relatives

RECOMMEND BATA SHOES RESPONSES

EX CELLENT 6

VERY GOOD 6

GOOD 32

FAIR 13

POOR 3

Table 9: Recommending Bata shoes

Sales

5% 10%

22% 10%

53%

EXCELENT VERY GOOD GOOD FAIR POOR

Figure 9: Recommending Bata shoes

Interpretation-5 3% customers will recommend that Bata shoe s are good, 22%will
recommend as the y are fair, and 10% will recommend very goo d and excellent, 5%
will recommend as poor.

63
Question 10-Repurchase of Bata prod ucts from Bata stores

REPURCHASE OF BATA SHOES RESPONSES

MORE THAN ONCE IN A YEAR 25

OCCASSIONALY 16

VERY OFTEN 11

RARELY 8

Table10: Repurchase of Bata products

Sales

13%
MORE THAN ONCE IN A YEAR
42% OCCASSIONALY
18%
VERY OFTEN
RARELY

27%

Figure 10: Repurchase of Bata products

Interpretation-4 2% of the customers will repurchase more than once in a year, 27%will
repurchase occasionally, and 18% repurchase very often, 13% repurchase rarely.

64
Question 11-Advertisements convince to buy Bata products

ADVERTISEMENT OF BATA RESPONSES

ATTRACTIVE 28

NOT ATTRAC TIVE 32

Table 11: Convince to buy Bata prod ucts

RESPONSES

47% ATTRACTIVE
53% NOT ATTRACTIVE

Figure 11: Convince to buy Bata products

Interpretation-5 3% customers are not convinced with their advertisements to

buytheir product s and 47% of the customers get attracted towards their products.

65
Question 12-Nature in Bata showroom
N ATURE IN BATA HIGHLY SA TISFIED DISSATISFIED
SHOWR OOM SATISFIED

COURTESY NATURE 14 35 11

FRIENDLY SALES 29 15 16
EXECUTIVE

CONGENIAL ENVIRONMENT 25 22 13

DISCOUNT AND OFFER 33 19 8

Table 12: Nature in Bata show room

Chart Title

35
33
29
25
22
19
15 16
14 13
11
8

COURTESY NATURE FRIENDLY SALES EXECUTIVE CONGENIAL ENVIRONMENT DISCOUNT AND OFFER

HIGHLY SATISFIED SATISFIED DISSATISFIED

Figure 12: Nature in Bata showroom

Interpretation-M any of the respondent s are satisfied with courtesy nature in
Batashowroom, some are highly satisfied wit h discounts and offer given by Bata, and
many of them think the sale s executive are not friendly

66
Question13- Impact on Bata Brand
IMPA CT ON BATA HIG HLY SATISFIED DISSATISFIED
SATIS FIED

PUBLIC RELATIONS 33 21 6

ADV ERTISEM ENTS 13 23 24

SALES PROMOTION 19 29 12

Table 13: Impact on Bata brand

Chart Title

33

29

24
23
21
19

13
12

PUBLIC RELATION ADVERTISEMENTS SALE PROMOTION

HIGHLY SATIDFIED SATISFIED DISSATISFIED

Figure 13: Impact on Bata brand

Interpretation-M any of the respondent s are satisfied with the public relations of
Bata,some of the respondents are satisfied with sale s promotion and the customers are
dissatisfied with the advertisements of Bata.

67
Learning Experience- Findings, Suggestions And Conclusion
FINDINGS:

• 43% of the customers buy Bata products occasionally, 35% customers buy on regular
basis, and 13% customers have but never buy, 8% never heard.

• 40% customer’s associate’s durability for Bata products, 24% associates comfort, and

• 14% associate’s price and 13% associates style, 9% associates others.

• 37% of the customers are using Bata products for 10 years, 32% of the customers are
using for 20 years and 22% of the customers are using for more than 20 years and
10% customers they have never used Bata products.

• 35% of the customers are suitable with Bata, 32% customers are suitable with Reebok
and 20% of the customers are suitable with Abdias, 10% customers are suitable with
Nike, 3% customers are suitable with Khadims.

• 45% customers are not satisfied with Bata sports wear, 32% are fully satisfied and

• 23% are not at all satisfied with Bata sportswear.

• 48% customers are fully satisfied with the variety of items and services in Bata stores,

• 28% are satisfied and 23% are not satisfied.

• 57% customers are satisfied with the cost of Bata products, 32% customers feel they
are more expensive and 12% feel the Bata products are less expensive.

• 60% customers think the quality of advertisements for Bata products and services are
poor, 28% think they are good, and 12% think they are very good.

• 53% customers will recommend that Bata shoes are good, 22% will recommend as
they are fair, and 10% will recommend very good and excellent, 5% will recommend
as poor.

68
 • 42% of the customers will repurchase more than once in a year, 27% will repurchase
occasionally, and 18% repurchase very often, 13% repurchase rarely.

• 53% customers are not convinced with their advertisements to buy their products and

• 47% of the customers get attracted towards their products.

• 38% feel there is discounts and offer in Bata showroom, 23% feel there is a courtesy
nature, and 20% feel the sales executives are friendly, 18% feel there is a congenial
environment.

• 62% believe in public relations of Bata, 25% believe in sales promotion, and 13%
believe in advertisements of Bata Brand.

Null hypothesis is rejected in case of chi-square test, it shows there is relation between
ambience and nature in Bata showroom.

Null hypothesis is rejected in case of one-way annova, it shows that the communication is not
dependent on the various attributes like advertisements, sales promotion etc.

69
SUGGESTIONS:

Give sales discount and free samples to influence more sales in the growing shoe
market.

Reduce the price level.

More advertisements should be aired.

Should build awareness among the potential customers.

• Bring more design, colour, and design combination to be competitive.

• To merge with the local companies and to expand more segmentation.

• Should come up with trendy, stylish footwear which can attract young generation.

• Should concentrate on sportswear.

• Bata should also look after their footwear durability and comfort to maintain
good relations with their loyal customers.

70
7.3 CONCLUSION:

From the analysis of Bata Shoe Company India Ltd and the shoe industry we have
identified that the shoe industry is growing and identified their main weakness is
insufficient lack of development with the rapid changing market needs, insufficient
promotional activities, and downward trend of quality.

On the other hand, distribution system and vertical integration are the strengths of
Bata From strategic marketing viewpoint; we see that Bata is taking corrective steps
in almost all the way.

In very few sides Bata has lacking. Based upon these facts recommended strategies
would assist in more growth of Bata shoe company India Ltd. in among the
upcoming fierce competition in the shoe industry.

Before I conclude my project on a highly esteemed organization, I

would like to submit public opinion in this favour. The pattern of job performance and the
quality of Bata product is not highly appreciated by the consumers. I would like to give my
view to entire Bata India Limited, Bangalore for improving their quality of footwear and also
should come with some good sports wear as customers are not satisfied with Bata sports
shoe. They should mainly concentrate on youngsters as now a day they want stylish and
designable shoes and chappals. My survey reveals the facts which determine the mile stone
achievement of organization.

71
 BIBLIOGRAPHY
BOOKS AND AUTHOR-
BRAND MANAGEMENT BY KELVIN KLIEN
PAGES-67 TO 77
JOURNAL AND MAGAZINES-
THE ECONOMICS TIMES
COMPANY JOURNALS
THE HINDU
THE TIMES OF INDIA
WEBSITES-
www.bataindia.com
www.google.co.in
www.hindubusinessline.com
www.wikipedia.org

72
 APPENDICES
BATA INDIA LTD.

NAME:
Email ADRESS:
CONTACT NO.:

1) What is the first company that comes to mind when you think of brand shoes?
NIKE BATA REEBOK ADDIDAS KHADIMS
2) How familiar are you with BATA shoes?

I‟ve never heard of them

I‟ve heard of them, but never buy their products I

buy their products occasionally

I buy their products on a regular basis

3) Which of the following attributes do you associate with BATA shoes?

STYLE DURABILITY COMFORT PRICE OTHERS
4) How long have been using BATA shoes?

5) Which shoe brand do you feel is most suited to your needs?

6) Do you think BATA serves the purpose of being a good brand, for Sports wear?

7) Will you prefer BATA launching a new range which can serve the purpose of service
class?
8) Do you think you find a variety of items and services in the BATA stores when shopping?

9) Does the cost of BATA shoes affect your purchasing choices?

10) Do you think our advertisements capture the best qualities of BATA products and
services?
If yes, please specify

73
11) How likely are you to recommend BATA shoes to a friend or relative? Would you say the
chances are ------ ?
EXCELLENT VERY GOOD GOOD FAIR POOR
12) How likely are you to repurchase products or services from BATA stores?

13) If you were new to our BATA products, would our advertisements be able to convince you
to buy them?

YES NO
14) List any other features that you would like to see in our services or products?

15) What recommendations and improvements would you suggest for BATA products and
services?

16)Which nature would you prefer in BATA showroom?

NATURE IN BATA HIGHLY SATISFIED DISSATISFIED

SHOWROOM SATISFIED

COURTESY
NATURE

FRIENDLY SALES
EXECUTIVE

CONGENIAL
ENVIRONMENT

DISCOUNT AND
OFFER

16)

74
17) What is your impact on BATA Brand?

IMPACT ON BATA HIGHLY SATISFIED DISSATISFIED

BRAND SATISFIED

PUBLIC
RELATIONS

ADVERTISEMENTS

SALES PROMOTION

75
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