Bata India Limited-

Reposition or Still Foot

Weary?
Group 3
1706 Aneedhi Gaude
1724 Joel Fernandes
1729 Pranisha Mandrekar
1730 Marwa Ebad
1735 Swapnil Mungarwadi
1757 Santoshi Naik
1767 Utpal Umarye
Introduction
 Bata India limited was India’s largest manufacturer and
marketer of footwear products with a sale of 60 million pairs
per year in India as well as in oversea market.

 The company was incorporated by Tomas Bata as “ Bata Shoe

Company Limited “ on 23rd December 1931 with its registered
office in Kolkata.

 By 1995, the firm operated a chain of 1000 retail outlets, 600

franchisees and over 200 wholesalers serving 1000 retail
outlets throughout India.
 In 2000, the company signed a ten year technology and service
agreement with Bata Limited of Toronto, Canada.

 The company implemented Point Of Sales(POS) in 140 retail

stores to provide centralized online information about sales
and inventory.

 The R&D activities of Bata focused on key areas of product,

process and material development.
Services and features
provided by Bata India ltd
Retail outlet

Four types of retail outlets

 Flagship – located in metro cities at high class locations supplying
fashionable products, imported and international brands in air-
conditioned and luxurious atmosphere .

 City store- located in metros and semi-metros at high end

commercial location catering the needs of fashion oriented middle
and high income group of consumers.
 Family store- at high traffic commercial location in major towns
providing to high priced basic footwear

 Bazar store- at high traffic stores at non-commercial locations as

destination store and small existing stores in thickly populated and
saturated market.
 Company Offered Voluntary Retirement Scheme (VRS) to
their employees.

 Started Training pogramme for shop assistant and managers.

 R&D Developed new range of products (comfort,flexible,

etc..)

 Retail Outlets and dealers were empowered to repair the

damaged product and for which they were reimbursed by the
company.
Company Analysis

 In mid of 1995, Bata resorted to discount sales where 2 million

shoes were sold at a 50% discount at a loss of Rs.41 crore.

 Within a year sale increased from 48 million pairs to 51 million

pairs.

 Bata posted a 216% growth in gross profit and 11% increase in

sales in the first half of 1998.

 In Non-Retail segment of Bata, there was over 60% of sales for

men’s range, while children’s and women’s range accounted for
about 20% each.
 The domestic turnover increased from 96.97% in 1999 to 98.59% in
2004 whereas the Export turnover decreased from 3% in 1999 to
1.38% in 2004
 The company was concentrating more on the domestic market than
the international market
 SWOT ANALYSIS

Strengths Weaknesses
1. Largest footwear retailer in India. 1. No variety in Fashionable
2. Largest market share in the organized shoes
footwear segment. 2. No proper planning regarding
3. Strong Brand Image Advertisement and
Promotions
4. Reasonable quality at low and a
reasonable price 3. Lack of Brand Image in the
premium segments
5. Provide training for managers and
employees
6. Targeting all income segments
Opportunities
1. Acquired, partnership with other players
2. New mediums for advertisements
3. Entering new segments of markets
4. Innovative products

Threats
1. Increased competition from leading multinational players in
the sports segment.
2. Changing in consumer preferences
3. Price wars with competitors
4. Customer dissatisfaction
 Problems- Bata India Limited
 Profit was affected due to increased cost of raw material. Sales increased
by 21 crore, also costs went up by 68 crore.

 Sales and distribution cost is also very high because most of shops are
owned by company itself and staffed employee.

 High value added footwear did not find acceptance in the market and led
to drop in sale volume. So 2 million shoe were sold at discount of 50% at
a loss of 41 crore.

 Bata was focusing on premium segment which account very less in

footwear industry in India.
Alternatives

 Bata should decrease its product price.

 Niche target segment for each of their brands
 Expand the product designs
 Focus on low value added footwear
Conclusion

 The company has already started reworking for recapturing its

pervious market share and customers
 Bata Can manufacture more products to increase its product line
 But it’s a long way to gain back pervious customers attention,
because in today’s market there are many competitors.
 Bata has to reposition its brand image for middle and upper middle
class people.
Thank you