Group 15

Abhishek | Arjun |
Mayuri | Rudresh |
Bata India
Savinay
Company Intro & Analysis
• Bata India is the largest retailer and leading manufacturer of footwear in India
Company Values
and is a part of the Bata Shoe Organization.

• Incorporated as Bata Shoe Company Private Limited in 1931.

SERVE WITH
• In January 1934, the foundation stone for the first building of Bata’s operation -
PASSION

now called the Bata.

• It was also the first manufacturing facility in the Indian shoe industry to receive BE BOLD

the ISO: 9001 certification.

• The Company went public in 1973 when it changed its name to Bata India COUNT ON
ME
Limited.

• Its retail network of over 1375 stores, present in good locations in all the EXCEED
CUSTOMER
metros, mini-metros and towns. EXPECTATIONS
• The Company also operates a large non-retail distribution network through its
IMPROVING
urban wholesale division and caters to millions of customers through over LIVES
30,000 dealers.
 Bata’s Entry in 1930

Bata founder Tomas Bata visited India in

the late 1920s to source rubber and leather
for his footwear factories.
He saw several barefoot Indians and
realized there was a huge market in the
subcontinent, too.
He vowed to make affordable footwear for
the masses.
 Addressing Early Voids
Product Market Voids

Void Question
Were customers willing to try new
products ? Do they trust foreign
companies ?

Specific Void
Lack of product awareness

Response:
Bata’s initial promotional campaign
focused on raising awareness such
as to protecting from tetanus &
harsh weather, wearing shoes to
school, utility for work etc
 Industry Analysis
• India is the 2nd largest producer of footwear (after China)
• The export of footwear, leather and leather products from India reached a value of US$ 5.74 billion during 2017-18.
• As per different sources, the annual production of footwear in India is around 2 billion pairs with 95% being sold in the domestic
market.
• Footwear (leather and non-leather) export accounts for about 43.5% share in India’s total leather & leather products export
• The retail value of footwear sector is estimated at USD 11.4 billion in 2019 and is expected to increase to USD 20.6 billion by 2024 with
an impressive growth rate of 12.6% as seen in fig 1.
• In terms of volume, India produced 1.8 billion units and is expected to product almost 3 billion units by 2024 growing at more than 10%
annually as shown in fig 2.

• Highly unorganized market with

95% supply for local demand
• High growth potential & export
capability
• Favorable demand factors
 Industry Analysis: Porter’s 5 Force
Buyer power : High
 High number of consumers
 Online tools enhancing
accessibility and understanding
 Loyalty & trust
 Low switching costs
Threat to new entrant: Moderate
 Large marketing budgets for running
shoes
 Brand identity
 Presence well renowned global brands
 Selling running shoes online
 Low raw material cost
Competitive rivalry: High
 High competition
 Major competitors: Adidas, Reebok, Nike,
Puma
 High growth in last two decades
 Increased global reach
 Expansion attributed to the emergences of
the internet and e-commerce
 Competition is fierce in the running shoes
industry
 Competitors adopting new techniques to
introduce their offerings
o Celebrity endorsement
o Sponsorship
Supplier power : Strong
 Very little differentiation among the suppliers
 Definite advantage and power over their
suppliers
 Suppliers become dependent on these firms
as their means to survival
 Firms are able to switch between suppliers
quickly and cheaply
 Inputs are readily substituted and there are
an abundant number of suppliers available.
 Low bargaining power due to big volume
companies
Threat of substitutes: High
 High threat of substitutes
 Buyers' propensity to substitute is high
 Many alternatives to switch
Bata’s Glocal Strategy in India

➔ Thomas Bata was looking for cheap rubber

Opportunity in India & noticed shoes were expensive in
Thinking India as they were exported from Japan
➔ Thought of this as a business opportunity

Possibility ➔ Leather was expensive

Thinking ➔ Thought of making shoes from cloth
(Canvas Shoes)

Never stop ➔ Manual Manufacturing restricted scaling

Learning ➔ Learnt mass production from USA and
applied it in India

No customer ➔ Product Basket Strategy

should go back ➔ Ensured there was something for everyone
➔ Became a family store
 ➔ Vision to make shoes accessible to everyone
Vision aligned
➔ Mass Pricing Strategy
Pricing Strategy ➔ Psychological Pricing Strategy

➔ Built an image as an Indian brand

Glocal Giant ➔ Promotion on Indian Festivals
➔ Using Indian celebrities in advertisement

➔ Youth started turning to new brands

Acquisition ➔ Acquired to increase footfall and for survival
➔ Few Acquired Companies: Hush Puppies,
Foot In, Power, North Star etc.

➔ Uses all platforms: Own stores, Franchise Partner

Multi-channel
Store, Multi-brand Outlets, and E-commerce
Retail Strategy platform
 Institutional Voids
Product Market

Void Question Void Question

Do large retail chains exist in the
country? Do they reach to all
segments & regions ?
Specific Void
Lack of organized retail brand chain &
distribution network
Can companies access raw
materials of good quality?
Specific Void
Lack of quality raw material supply
& processing infra for
manufacturing capabilities

Response
Bata established itself as the largest
retailer with 1526 stores across all
metros, mini-metros & towns & 30K
dealer network
Response
Bata established 2 tanneries in
Batanagar and Bihar (in 1952).
Later is the Asia’s 2nd largest
tannery
 Institutional Voids
Product Market
Void Question
Are there other types of distribution
channels such as D2C that deliver
products to customers ?
Specific Void
Rapid adoption of online retail & e-
commerce due to boom in technology &
credit supply
Response
Bata has expanded its online presence
with inhouse website & focus to increase
sales with all major ecommerce networks
– 1.8M sold via online
Void Question
Can companies easily obtain reliable data on
consumer tastes ? Do world class market research
firms operate in country ?
Specific Void
Lack of Information analyzers or advisers to help
company
Response
Entered into an agreement with Bata Ltd of Toronto
Canada for supply of technical know-how and
services such as Footwear technology and design
brand development product development retailing
and information systems
 Institutional Voids
Labor / Talent Market

Void Question
What are the major post recruitment training
needs of people who MNC hire locally ? Unresolved Voids

Specific Void • Unorganized & dysfunctional market

Lack of formal training & technical support for
productivity
Response
• Bata has collaborated with Singapore based
technical research organization (GFS) for 10
years to develop competence on R&D,
logistics, marketing etc
• Launched iGrow online platform for self-
paced employee skill development
for raw materials - animal skin &
hides – lower value chain – Poor
vertical linkage
• Absence of cross industry research
institutes such as biomechanics /
tech / materials
 Recommendations

Bringing customization to
Incorporating Technology Targeted interventions for
the customer using
within footwear firms in value chain
technology

Skill development for blue Industry 4.0 In the

collar labourers footwear sector
Thank you!
SWOT Analysis of BATA India

Strength Weakness
• Deep Market • Declining Market
Penetration Share
• Distribution Network • Declining Sales due
• Excellent positioning to Pandemic
& Brand Strategy • Controversies
• Global Footprints

Opportunity Threats
• Increasing demand in • Duplicate Products
Rural Markets • Tough Competition
• Premium Footwear • Government Rules
Demand and Regulation
 References

1. Bata India –Annual Report

2. KPMG – White Paper Report - http://www.dcmsme.gov.in/white_paper/3.%20Whitepaper-F

ootwear%20Sector-Year%201.pdf

3. https://www.thebetterindia.com/244022/bata-shoe-history-indian-foreign-which-country-
organisation-indian-ceo-international-brand-batanagar-kolkata-ros174/

4. https://theprint.in/features/brandma/bata-the-foreign-shoe-brand-that-became-a-friend-
for-generations-of-indian-school-students/548633/