Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                

A Study of Consumer Preferences of Footwear Industry With Special Reference To Bata in Haryana LTD

Download as doc, pdf, or txt
Download as doc, pdf, or txt
You are on page 1of 53

A

SUMMER TRAINING REPORT


“A STUDY OF CONSUMER PREFERENCES OF
FOOTWEAR INDUSTRY WITH SPECIAL
REFERENCE TO BATA IN HARYANA LTD.”

Submitted In Partial Fulfillment for the requirement for the award


of degree of
BACHELOR OF BUSINESS ADMINSITRATION

SESSION : 2017-20

UNDER THE SUPERVISION OF : SUBMITTED BY:


Dr. Nisha Somvir Sangwan
Assistant Professor MBA 4th Sem.
Faculty of Mgmt.& Commerce Roll No.

BABA MASTNATH UNIVERSITY


ASTHAL BOHAR ROHTAK
DECLARATION

I am Somvir, Roll No. ………….. student of BBA programme Faculty of Management &

Commerce, Baba Mastnath University, Asthal Bohar, Rohtak hereby declare that the present

Project Report on “Performance Appraisal” is a original piece of work done by me and has been

not submitted to any organization in any means possible.

The Project Report is not submitted to any other Institute/University for the award of any degree of

BBA

Supervisor Signature of Candidate


Dr. Nisha Somvir Sangwan
Asst. professor

Countersigned
Dr. RAMPHOOL SHARMA
Dean
Faculty of Management & Commerce
BMU
ACKNOWLEDGEMENT

Nobody is born perfect in himself; it is some timely guidance, proper


teachings and blessings by well wishers and seniors around us, who gives
me perfection and skills to make myself prepared to walk on the path of
success.

My project work, which is the first step of mine in the fields of


professionalism, has been successfully accomplished, due to co-operative
efforts of friends and colleague together.

I would like to pay my sincere gratitude and thanks to those people, who
directed me at every step in the project work.

My sincere thanks go to the Dr. Nisha , BMU, Rohtak without her support
this study would not have materialized.

Somvir Sangwan
CERTIFICATE

It is certified that SOMVIR SANGWAN, Class Roll No. …… has


worked under my supervision and guidance in the Master of Business
Administration (MBA) as the Research Project entitled “Consumer
Awareness”

No part this project has been submitted for any other degree and all the
help taken during the course of this study has been duly acknowledge.

Dr. Nisha
Assistant Professor
TABLE OF CONTENTS

Chapter 1: INTRODUCTION
 Introduction about topic
 Objectives of the study
 Significance of study

Chapter 2: REVIEW OF LITERATURE

Chapter 3: RESEARCH METHODOLOGY

Chapter 4: DATA ANALYSIS AND INTERPRETATION

Chapter 5: CONCLUSIONS AND SUGGESTION

Chapter6: LIMITATION OF THE STUDY

BIBLOGRAPHY

QUESTIONNAIRE
INTRODUCTION

INDIAN FOOTWEAR INDUSTRY

With a large population close 1000 mn; India has a large shoe demand. The total size of

the market is estimated at 800 mn pairs, which represents less than a pair per capita.

While a large number of people buy two to five pairs, some even ten pairs, there is a

large number of who buys even more. With only one more pair per capita, the demand

will expand by a staggering 1000mn pairs. This is a norm, which is not hard to

conceive. The per capita demand is expected to increase to 1.5 pairs by 2006 and 2.5 by

2010. The price range is so dispersed that a predominant majority can buy an additional

pair a year. In fact, the life cycle of many pairs is not as long as one year.

Until recently, a major part of the demand was met by the unorganized, informal, small

sector. Branded shoes account for only less than 20% of the entire market. Less than 1%

of the shoes sell at prices exceeding Rs 500 per pair.

The industry had witnessed major problems regarding raw material costs, funds

availability, declining capacity utilization and increasing global competition. Capacity

utilization, a major indicator of the economic health of the industry, was low at 60%.

The Supreme Court Orders recently forcing closure of many leather tanneries in various

state gave a jolt to the leather industry in the Country. Like states of Tamilnadu, leather

is one of the State’s prime industries contributing 60% of the country’s leather

production and providing 250000 jobs in 914 tanneries.


Shoes have diverse segmentation:

1.) By material of construction:

There are:

a) Leather
b) Rubber
c) PVC
d) Canvas
e) Multi product shoes
2.) By consumer’s variation:
There are:
a) Men’s
b) Women’s,
c) Boy’s
d) Girl’s
e) Baby shoes

3.) By usage pattern:

There are:

a) Formal shoes

b) Casual and informal shoes

c) Slippers for in house use

d) Military shoes and

e) Sports shoes
4.) By types of shoes:

There are:

a) Military or police boots

b) Formal dress closed and pumps shoes

c) Sandals

d) Hawai chappals and

e) Slippers

5.) By price range:

a) High end over Rs1000 per pair going

beyond Rs2500 per pair

b) Medium priced shoes between Rs499 to Rs. 999 per pair.

c) Low priced shoes below Rs350 per pair.

d) Plastic chappals or leather strapped rubber sole chappals could be priced as

low as Rs 99 a pair.

e) Women’s footwear sector is a fancy segment served both by local producers

and foreign suppliers.

The industry is segmented widely:

a) Large Indian producers


b) Multinationals producing in India or exporting from abroad

f) Small scale semi-organized sector

g) Cottage industry.

Only the first two segments produce branded shoes.

Market Growth Rates

Sensitivity 5.2%
Cofficient

2001-02 - 9.4%
2006-07
Year

1996-97 - 10.6% Series1


2001-02 Series2
1990-91 - 9.0%
1996-97

0 0.05 0.1 0.15

Rate of Growth
MARKET STRUCTURE

Market Segmentation

Segment Share (%)

Organized 20

Informal 80

Market Structure
20%

Organised
Infomal

80%
OBJECTIVES OF THE STUDY

1. To evaluate effective marketing strategies for gaining maximum market share in the

competitive footwear market.

2. To assess the consumer’s approach towards Bata Footwear.

3. To know about the marketing strategies of the competitors and their effect on the

Bata India Footwear.

4. To know about the latest Marketing Strategies adopted by the company to achieve its

desired goals and objectives.


PRODUCT VARIATION
Type Share (%)
Casuals 46
Sports 42
Formals 8
Performance 4
Below Rs 500/pair 68
Rs 500 to Rs 1000 29
Above Rs 1000 3
Leather 10
Rubber/PVC 21
Canvas 69

Product Variation

80
70
60
50
Share (%)

40 Share (%)
30
20
10
0
rm ls

as
bb ber
Ru er
Sp s
Fo ts

Ca C
Ab . 50 ce

Le 0
al

Rs air

V
or

h
00

nv
Be Per rm
su

an

b
at

/P
ov 0/p

.1
Ca

er
low fo

Ru
e
Rs

Types of Product
SIGNIFICANCE

Strengths of Bata India Ltd.

 It is an established brand leader for ages.

 It is very popular in all the segments of society.

 This product caters to the needs of all the age segments.

 It has a very strong distribution network all over India.

 It has a very strong market for school shoes and office shoes.

Weaknesses of Bata India Ltd.

 Their designs are very old fashioned.

 They are presently loosing their market share in metropolitan cities in India.

 They have no schemes or incentives for dealers.

 Their dealer motivation is absolutely nil.

 They are advertising very less now a days.

 The promotional material given to the dealers and distributors are very less and not

very frequent.

 People of upper class and upper middle class can’t wear the shoes designs available

with them.
Opportunities for Bata India Ltd.

 By using the latest technology and give a new look.

 They should start catering to the needs of upper class and upper.

 They should introduce latest designs and fashions based on trends of today’s market.

 They should start advertising more on television and newspapers.

 They should have more schemes for dealers and consumers.

 They should concentrate more on dealers motivation and change their perception

towards this brand.

Threats

 Introduction of new companies in diverse markets.

 They are loosing their dealers’ network because of opportunities from the other

leading shoe company’s offerings to the dealers.

 They concentrating mostly on the lower and middle class segments.

 Expectations of dealers for more schemes from companies to make maximum sales.

 Entry of International designs in the market making other shoe designs old.
Chapter 2

LITERATURE REVIEW

Marketing organization

Over the years marketing has grown from a simple sales department into a complex

group of activities. We will examine how marketing departments have evolved in

companies how they are organized and how they interact with other company

departments.

The evolution of the marketing department

Marketing departments have evolved through six stages simple sales department sales

department with marketing function separate marketing department modern marketing

department effective marketing company process and outcome based company.

Customer focus

In India, marketing as a discipline has evolved at a leisurely pace, dictated of course by

circumstantial factors. Most market being sellers markets (i.e., where seller dominates

over the customer) until recently marketing philosophy was an alien concept for an

India seller. In a broad sense all markets can be divided into two categories: sellers

market and buyers market. A buyers market is one where due to prevailing intense

competition among the sellers and consequent excess of supply over existing demand

the buyer rules over the seller. On the other hand in a sellers market competition is

restricted for any number of reasons. For example domestic air transportation was

sellers market till only Indian airlines was operating. Now it is a buyers market.
Neil Borden summed them up as marketing mix. Then the prevailing thinking was that

it involved a blend of selling distribution advertising and related skills in the right

proportion to suit the market its time and place. After marketing got separated from the

notion of selling the former now manufacturing and post manufacturing (transportation

ware housing promotional) costs plus the targeted level of profit margin. Actual price

fixing of course depends on the function features of the product and image of the brand.

Then there is the degree of the competition that dictates the prices of a brand vis-à-vis

its competing brands.

Price can also act as communication tool. For example price package may give the

message of affordability.

We also acquire needs after we are born. These needs are shaped by the environment

and the culture in which we live by our education and by our experiences. The

interesting thing about acquired needs is that there are usually many people who

experience the same needs. This commonality of needs or interest constitutes a market

segment enabling the marketer to design specific product and/ or promotional appeals to

satisfy the needs of that segment. Market segmentation also enables the marketer to

very the image of its product so that each market segment perceives the product as

better fulfilling its specific needs than competitive products.

One of the most important constants among all of us despite our differences is that

above all we are consumers. We use or consume on a regular basis foods clothing

shelter transportation education equipment vacations necessities luxuries services even

ideas. As consumers we play a vital role in the health of the economy local national and

international. The purchase decisions we make affect the demand for basic raw

materials for transportation for production for banking they affect the employment of
workers and the development of resources the success of some industries and the failure

of others. There is no question that consumer behavior has become an integral factor in

the ebb and flow of all business in a bustling world economy.

The term consumer often is used to describe two different kinds of consuming entities

the personal consumer and the organizational consumer. The personal consumer buys

goods and services for his or her own use (e.g., an electronic notebook) for the use of

the household (a VCR) or as a gift for a friend (a videogame) in each of these context

the products are bought for final use by individual who are referred to as end users or

ultimate consumers. The second category of consumer the organizational consumer

includes profit and not for profit business government agencies (local state and

national) and institution (e.g., school hospitals and prisons) all of which must buy

product equipment, and services in order to run their organizations.

Forecasting and demand measurement

One major reason for undertaking marketing research is to identify market

opportunities. Once the research is complete the company must measure and forecast

the size growth and profit potential of each market opportunity. Sales forecasts are used

by finance to raise the needed cash for investment and operations; by the manufacturing

department to establish capacity and output levels by purchasing to acquire the right

amount of supplies and by human resources to hire the needed number of workers.

Marketing is responsible for preparing the sales forecasts. If its forecast is far off the

mark the company will be saddled with excess inventory or have inadequate inventory.

Sales forecasts are based on estimates of demand. Managers need to define what they

mean by market demand.


Company sales forecast

Once marketers have estimated company demand their next task is to choose a level of

marketing effort. The chosen level will produce an expected level of sales. The

company sales forecast is the expected level of company sales based on a chosen

marketing plan and an assumed marketing environment.

The company sales forecast is represented graphically with company sales on the

vertical axis and company marketing effort on the horizontal axis as in. too often the

sequential relationship between the company forecast and the company marketing plan

is confused. One frequently hears that the company should develop its marketing plan

on the basis of its sales forecast. This forecast to plan sequence is valid if forecast

means an estimate of national economic activity or if company demand is non

expansible. The sequence is not valid however where market demand is expansible or

where forecast means an estimate of company sales. The company sales forecast does

not establish a basis for deciding what to spend on marketing. On the contrary the sales

forecast is the result of an assumed marketing expenditure plan.

A product mix (or product assortment) is the set of all products and items that a

particular seller offers for sales to buyers.

Product classifications

Marketers have traditionally classified products on the basis of characteristics durability

tangibility and use (consumer or industrial). Each product type has an appropriate

marketing mix strategy.


Durability and tangibility

Products can be classified into three groups according to durability and tangibility:

1. Nondurable good are tangible goods normally consumed in one or a few uses like

beer and soap. Because these goods are consumed quickly and purchased frequently

the appropriate strategy is to make them available in many locations charge only a

small markup and advertising heavily to induce trial and build preference.

2. Durable goods are tangible goods that normally survive many uses refrigerators

machine tools and clothing. Durable products normally require more personal

selling and service command a higher margin and require more seller guarantees.

3. Services are intangible inseparable, variable and perishable products. As a result

they normally require more quality control supplier credibility and adaptability.

Examples include haircuts and repairs.

Sales promotion:

Sales promotion tools coupons contests premiums and the like offer three distinctive

benefits:

1. Communication: They gain attention and may lead the consumer to the product.

2. Incentive: They incorporate some concession inducement or contribution that gives

value to the consumer.

3. Invitation: They include a distinct invitation to engage in the transaction now.


Companies use sales promotion tools to draw a stronger and quicker buyer response.

Sales promotion can be used for short run effect such as to dramatize product offers and

boost sagging sales.

Consumer Behavior:

The term consumer behavior refers to the behavior that consumer display in searching

for, purchasing, using, evaluating and disposing of products and services that they

expect will satisfy their needs. The study of consumer behavior is study of how

individuals make decisions to spend their available resources (time, money, effort) on

consumption related items. It includes the study of what they buy, why they buy it,

when they buy it, where they buy it, how often they buy it, and how often they use it.

Take the simple product toothpaste. What types of toothpaste do consumers buy (gel,

regular, striped, in a tube, with a pump) ; what brand (national brand, private band,

generic) ; why do they buy it (to prevent cavities, to remove stains, to whiten teeth, as a

mouthwash, to attract romance); where do they buy it (supermarket, drugstore,

convenience store); how often do they use it(when they wake up, after each meal, when

they go to bed, or any combination thereof); how often do they buy it (weekly,

biweekly, monthly)?
CB : A SYNTHETIC FIELD OF STUDY
---------------------------------------------------
SOCIAL
PSYCHOLOGY PSYCHOLOGY

CONSUMER
BEHAVIOUR

ANTHROPOLOGY SOCIOLOGY

ECONOMICS

SOME CONSUMER BEHAVIOUR ROLES


Role Description
-----------------------------------------------------------------------
Initiator The person who determines that some need
or want is not being met.

Influencer The person who intentionally/unintentionally


influencesthe decision to buy the actual purchase
and/or use of product or service.

Buyer The person who actually makes the purchase.

User The person who actually uses or consumes the


product or service.
Studying consumer behaviour
EXTERNAL
ENVIRONMENT

SUBCULTURAL INFLUENCES
CULTURAL INFLUENCES

DETERMINANTS SO
INDIVIDUAL CI
AL
CL
M
INFORMATION PROCESSING` AS
OT S
LE IN
IV
AR FL
AT
PROBLEM NI UE
IO
RECOGNITION DE NG NC
OT N
CIS &
HE & ES
IO ME
R IN FE M
INFORMATION N
IN VO ED PR OR
FL LV BA SERACH &
EM OC Y
UE CK EVALUATION ES
NC EN
S
ES T
PURCHASING SO
CI
PROCESS AL
GR
OU
POST PURCHASE P
BEHAVIOUR IN
FL
PERSONALITY & SELF-CONCEPT UE
ATTITUDES NC
ES`

PERSONAL INFLUENCES

FAMILY INFLUENCES

FRAMEWORK FOR ANALYZING


CONSUMER BEHAVIOUR
ENVIRONMENTAL
AND
INDIVIDUAL ANFLUENCES

O
U
TYPE
BUYER T
OF
DECISION PROCESS C
BUYING
O
SITUATION
M
E
COMPANY PROFILE

ABOUT BATA INDIA LIMITED

Bata India Limited is India's largest manufacturer and marketer of

footwear products. Bata India sells over 60 million pairs per year throughout India and

in overseas markets such as USA, UK, Europe, Middle East and Far East.

Bata India is part of the global Bata Shoe Organization based in Toronto, Canada.

Incorporated as Bata Shoe Company Private Limited in 1931, the company went public

in 1973 when it changed its name to Bata India Ltd.

 Its first factory was set up in Konnagar in 1931 which was then shifted to Batanagar.

 At its five factories - Batanagar, West Bengal (1936);

Bataganj, Bihar (1942); Faridabad, Haryana (1951);

Peenya, Karnataka (1988); Hosur, Tamil Nadu (1994) - the Company manufactures

quality leather, rubber, canvas and PVC shoes in wide-ranging designs and styles at

affordable prices.

 Bata India has two tanneries - one at Batanagar and the other at Mokamehghat in

Bihar (1952). The latter is the second largest in Asia.

 Batanagar factory is the first Indian shoe manufacturing unit to receive the ISO

9001 certification in 1993.

 Bata first established itself in India in 1931 and commenced manufacturing shoes in

Batanagar in 1936. At that time the Bata Shoe Organization was headquartered in
the Czechoslovak town of Zlin, the residence of Tomas Bata, the founder of the

Organization.

 Operations were expanded throughout India with the establishment of factories in

different states and the rapid growth of the distribution channels to allow the

Company's products to reach consumers in every town across India. Bata India

remains today India's biggest manufacturer and marketer of footwear.

 Starting operations as a private company, Bata India is today traded on the

Kolkata and Mumbai Stock Exchanges


BATA HISTORY

The business that became the Bata Shoe Organization was

established on August 24, 1894 in Zlin, Czechoslovakia by

Tomas Bata, and included his brother

Antonin and sister Anna. Although this

business was new, the Bata name had been

part of a tradition of shoemaking for eight generations, spanning

three hundred years.

It was one of the first modern-day shoe 'manufacturers', a team of

snitchers and shoemakers creating footwear not just for the local town, but also for

distant retail merchants. This departure from the centuries-old tradition of the one-man

cobbler's workshop was a brand new concept, creating an entirely new industry.

The Bata enterprise revolutionized the treatment of employees and labour conditions.

Tomas consistently maintained a human focus, creating opportunities for development

and advancement, and added compensation for employees based on achievement.

In late 1895, Antonin was drafted into the army for

compulsory military service and left the family shoe

business. Also that year, Anna left the company to marry,

leaving a young Tomas to build the business on his own.

By 1905 Tomas had taken the new enterprise to 2,200 pairs of

shoes per day, produced by 250 employees - utilizing

resourceful imaginations, skilled hands and modern


machinery to keep up with demand. Under this 'manufacturing' system, productivity

was greater than ever before.

Bata® shoes were excellent quality and available in more styles than had been offered

before. Demand grew rapidly in the early 1900s. Despite material and manpower

shortages, cartels and the outbreak of World War I, sales continued to increase, reaching

two million pairs per year by 1917.

As the enterprise prospered, so did the communities where it operated. Tomas believed

that a focus on people and public service was critical for business success. The

enterprise built housing, schools and a hospital near the shoemaking plant in Zlin. It

provided food and inexpensive rent during very difficult times, when there was no other

help to be found. Bata companies later provided rail services, construction, insurance,

publishing and a tannery in Zlin.

Following World War I, consumer purchasing power was very low. Tomas and his

employees devised a plan to adjust to post-war economic difficulties and reduced their

shoe prices. Bata® stores were flooded with buyers, and industry cynics were forced to

follow their lead.

Already exporting to other European countries, Northern Africa and the USA, the

enterprise began establishing new sales organizations in these markets during the 1920s.

Companies were opened in Poland, Yugoslavia, Holland, Denmark, the United

Kingdom and the USA. By the early 1930s, the Bata enterprise and Czechoslovakia

were the world's leading footwear exporters.

"
BATA RANGE OF PRODUCTS

Bata Brands:

With more than eight renowned brands, which include Hush Puppies, Marie Claire,

Bubble Gummers, Power, they cater to a wide range of choices all over the country.

Hush Puppies are one of the world's most comfortable shoes designed for both men and

women. Marie Claire is for today's fashion conscious women who love shoes, which

match their colourful and vibrant wardrobe. That's not all. For those who want a tough

shoe that can weather any storm, they have Sandak to suit their needs. Weinbrenner is

simply meant to take you outdoors. With them on you can be rest assured about their

rugged character and durability. Kids can take their pick from Bubble Gummers. Power

is all about athleticism, for those who love sports and enjoy sporting activities.

Bata Premium Collections

Bata has been delivering hand-crafting quality footwear for well over 100 years. To

maintain and build on their heritage of creating high quality, comfortable and stylish

shoes, Bata has created the Bata Premium Collection of products in their design centre

in Italy.

These shoes are available at selected Bata stores in Europe and elsewhere, and

incorporate innovative leading design with the application of modern technology. They

are their signature shoes for both women and men.


PRODUCT PROFILE

Girls (FITNESS)

Women generally own more pairs of shoes and slippers than men. They generally buy

3-4 or more pairs of shoes within a year. And as they like to buy a number a shoes

within a year they want the shoes which provides them comfort, Quality, at a very

reasonable price. So seeing the opportunity Bata launched a new product and named it

as “Fitness”. Fitness is there in the market from last fifteen years but company

consistently improved it keeping in view the changes, which have taken place in last

fifteen years. In fifteen years, lifestyle of the consumer changed rapidly. After studying

the about Indian market the company ranges it in between of Rs. 124/- to Rs. 179/-.

Teenage girls also contribute heavily on these kinds of shoes. Almost 96 percent of

them bought their last pair of shoes or slippers in the last 12 months. It is observed that

teenage girls are more fashion-oriented as compare to ladies.

Boys (POWER)

Large proportions of teenage boys buy Sports Shoes. The choice, in this category, is

between Bata and Phoenix or any local brand. The competitive categories are leather

and sports shoes. If one were to look at number of pairs owned, there is no major

difference between these two categories: Most category-owners own one pair of leather

or sports shoes. It is there in the Indian market from last fifteen years and company has

regularly improvised their product with the change in fashion, trend, quality and

comforts and from there on company consistently revised the prices of Power. At

present Power is priced between Rs. 599/- to 999/-.


BATA'S BRAND POWER

60

50

40

30

20

10

0
2000 2001 2002 2003 2004 2005 2006

KIDS (BUBBLE GUMMERS)

Bubble gummer is kids range conceived by bata & bata has regularly surveyed the

small age consumer and customers from last 15 years. The shoe was designed after

identifying the real need or wants of the kids. So, bata launched “bubble gummers”

which satisfies kids in every aspect whether take it in terms of comforts and durability.

The shoes is available in number of colours as well as they are designed in a way which

looks funky & trendy so that children’s get attracted towards it and induces parents to

buy that product. The shoes ranges from rs. 99/- to rs 124/- onwards.

FITNESS

Here, the Company has followed the “Maximum Sales Growth” pricing strategy for its

ladies collection called “Fitness”. The Bata’s fitness includes ladies slippers which has a

wide variety with different features look moisture free, airy, comfort ability and many

more. The fitness is ranges from Rs. 124/- to Rs. 179/-. The Company has segments its
market towards lower and middle class. The fitness provides to its customer an

evergreen range of products. The customers purchase it over the whole year and also the

shoes have a very longer life. That’s why the company adopts this strategy for pricing

strategy of its ladies shoes fitness.

BUBBLE GUMMERS

And know ultimately let’s have a look at the pricing strategy which was adopted by the

Company Bata for its Bubble Gummers. The strategy adopted was “Maximum Sales

Growth” due to the reason as the growth rate of children is very fast and the size of their

feet’s changes very frequently. And also the children are not too much bothered about

their shoes that’s why sometime the lost them. So, after going through all these reasons

the company looks to adopt the “maximum sales growth” pricing strategy.
RESEARCH METHODOLOGY

RATIONALE BEHIND THE STUDY

Rationale behind the study is as follows:

1. The change in the marketing strategies and consumer preferences in competitive

world market.

2. The marketing strategies evaluated by the management being less effective as

compared to its competitors.

3. The consumer preferences in purchasing footwear other than Bata.

4. The threat of competition increased by penetration of International marketers in

the National Footwear market.

5. The decrease in the company’s market share.

To meet the aforesaid challenges it has become necessary to study the evaluation of

Marketing Strategies and Consumer Preferences assessment.


RESEARCH DESIGN

Both primary and secondary data were used to study the evaluation of marketing

strategies and consumer preferences assessment.

1. Collection of Primary data:

The primary data was collected by conducting a questionnaire method through mail

and interview. A selected sample of 100 people including consumers, company’s

executives and non-executives belonging to different geographical areas of Panipat

were interviewed regarding the topic chosen for the study.

Data thus collected was statistically analysed and on the basis of the analysis

recommendations and suggestions have been given.

2. Collection of Secondary data:

The secondary data regarding marketing strategies and Consumer Preferences were

collected from the company’s business record.

HYPOTHESIS

Bata can improve its market share by adopting new marketing strategies.
DATA ANALYSIS

The following is the analysis that is based on the responses filled in by the consumers in

the questionnaire. It is calculated with the help of frequency tables, bar graph, pie-

charts, etc. all close-ended questions have been included as a part of the analysis and the

analysis of the face to face interaction and the analysis of the close-ended questions

form the base for recommendations.

Number of Respondents: 100

Survey Area: Panipat

Income Level (Per Month) of Respondents:

0% 4%

21%

< 5000
5000 - 10000
10000 - 20000
>20000

75%
1. Do you use Bata Footwear?

0%

YES
NO

100%

I have only contacted people using Bata Footwear. If they answered no to this question

then that questionnaire was terminated.


2. Which kind of shoes do you wear?

55% 45%

60

50

40

Leather
30
Sports

20

10

Mostly people use leather shoes 55% people used leather shoes and 45% people used

sports shoes
3. What you required in footwear’s?

35% 45%

12% 8%
8% 8%

45% people purchase the shoes on the basis of Quality and 35% purchase on the

basis of comfort & 12% purchase on the basis of design and 8% purchase on the

basis of colour.
4. Which other brand of Footwear do you know?

8% 11%

12% Reebok
Action
24% Libertry
Nike
Adidas
16%
Others

29%

Mostly people know about BATA only 29% people know liberty, 24% people know

Action and 16% people know about Nike, 12% know about Adidas and 11% know

Reebok and 8% know about others.


5. Do you perceive any significant differences among different brands of

Footwear’s?

Yes
No

97

Thus we see this is a high involvement product and the consumers feel that there are

significant differences in brands categorizing Footwear in the bracket of complex

decision making.
6. Rate in the order of importance the following brands.(on a scale of 1 to 6: 6-

Most Popular - 1 - Least popular)

0
Bata Reebok Action Liberty Nike Adidas

Thus we see according to the consumers the most popular (1 st) Brand for Footwear is

Bata, 2nd most popular brand is Reebok, 3rd is Nike, 4th is Liberty, 5th is Adidas, 6th is

Action.
7. What was the basis of selection of Footwear’s?

8% 5%

35% Cost
19% Features
Advertisements
Brand Loyalty
Others

33%

The pie charts shows that mostly consumers look for all the above aspects in the

purchase of Footwear but cost and features are the most important basis of selection.
8. Who influenced you in the purchase of Footwear’s?

35 34

30

25 22
20
16
15 12 12
10
4
5

Any other
Friends

Relatives

Sales person
Members

Advertisement
Family

Family members are the greatest influences in the purchase of Footwear’s. Even sales

person have rate role to play. Advertisements also lead a mark on the consumer mind.
9. Who made the purchase decisions in the final purchase?

4%
1% 4%
1%
Yourself

Spouse

Youself &
Spouse
Children

Any Other
90%

Mostly customers purchase according to our self only few customer purchases with the

help of spouse, children and others.


10. Are you satisfied with the products of Bata India Ltd.?

Highly Dissatisfied

7% 2% 16%
Somewhat
Dissatisfied

Neither Satisfied nor


Dissatsfied

21% Somewhat Satisfied


54%

Highly Satisfied

Mostly all consumers are satisfied with product infact somewhat satisfied. A major

percentage of consumers (21% are neither satisfied nor dissatisfied. Some consumers

(7%) are highly satisfied with the product. But 16% of consumer are somewhat

dissatisfied and 2% are highly dissatisfied.


EVALAUTAION OF MARKETING STRATEGIES OF

BATA INDIA LTD.

If you were to ask an Indian customer about the best footwear in the eighties, the name

that first popped in his mind was Bata. But that was before Private Indian and

international brands came in. And made the Canadian shoemaker look fuddy-duddy and

worn out, so much that it was almost kicked out of the market.

Though recognized as a household name in India, a financially beleaguered Bata has

managed to capture 24 per cent market share in the organized footwear market. The

company is now looking at a turnover of Rs.8,400 million by the end of next year.

The company markets international brands like Weinbrenner, Hush Puppies, Dr

Schools, Reebok, Adidas, and Azaleia. The other most popular Bata brands include

Power, Marie Claire, Bata School Shoes, Sandak, Bubblegummers, Bata Hawai and

Bata Industrial.

The new comers invested in snazzy retail outlets, with great displays and interiors and

also sold products, which were seen to be hip and with it. But no more. Bata is making a

comeback and with a vengeance. With a range of stores that it promises will help draw

in customers like before.

BATA India Ltd — the country's largest manufacturer of footwear products — is

targeting a 12 per cent jump in turnover at Rs 840 crore in 2010, against estimates of Rs

780 crore for the current year.


The Indian arm of the Toronto-based Bata Shoe Organisation, which is in the process of

restructuring its retail business and refurbishing its 1,600 stores across the country, has

spent Rs 12 crore on the exercise besides investing in technology at its plants in 2004.

The ongoing restructuring exercise involves ways and means to increase their topline

and bottomline growth. Bata India had been a high cost structure company.

The company had posted a net loss of Rs 26 crore for the year ended December 31,

2004 on a turnover of Rs 716 crore. The company hopes to wipe out the accumulated

loss by 2010 and is planning to introduce another round of VRS in 2006 and is

expecting around 700-800 employees to opt for the scheme.

Buoyed by the success of the 'Power' brand, which is witnessing an increase of 15 per

cent quarter on quarter, India's largest manufacturer and marketer of footwear products

Bata India Limited launched the new range in the 'Power' category in December 2004.

The company also introduced, for the first time, what it calls a

`revolutionary product’ in the field of comfort footwear: Reverso.

The launch of the new range is part of their overall strategy to be future ready and face

competition head on. The emphasis is also on presenting a contemporary and trendy

brand image, which translates to both its product and corporate culture.

As a step towards rejuvenating the Bata brand, the company is repositioning itself as a

market driven, fashion conscious lifestyle brand with an emphasis on service and

production.
The company recently introduced international styles and trends for women, men and

kids, which have gone a long way in providing a trendy and contemporary image to the

company.

Bata, reinventing itself as an international retailer and offering customers the best in

footwear in terms of fashion, quality and price has introduced the concept of flagship

stores to provide complete and unique shopping experience at par with their stores

abroad. International trends, relaxed ambience, great products, and courteous staff at the

new-look Flagship store are all a part of Bata’s new marketing strategy.

The new store, conceptualized by Bata and designed by renowned architect-designer

Sanjiv Verma, reflecting international trends, is totally different from any other existing

Bata stores in the country. Be it in terms of colour, interior and product placements.

Further, to capture the retail boom prevailing in the country, the company has decided to

move its headquarters to Gurgaon in the last year.

Bata’s brand new collection of highly fashionable international range of ladies footwear

under the Marie Claire brand will be one of the major attractions at this flagship store

The store will also showcase top-of-the-line brands including the latest international

collection from Weinbrenner, Hush Puppies, Bubble Gummer, Dr Scholls and Bata Tech

shoes. Brands like Nike, Reebok and Adidas will also be available. The store will

additionally offer trendy accessories like caps, T-shirts and other lifestyle products -

making it a complete one-stop shopping experience for its customers.

The company's conscious decision to cleanse its wholesale business by building

relationships with credit-worthy buyers and converting three of its wholesale depots to

'cash-n-carry' on a trial basis has started to show positive result.


In a bid to improve its logistics and distribution system, Bata has made investments to

the tune of Rs.20 million in the current year. Large investments have also been made in

the area of IT to integrate approximately 150 stores on a real-time basis.

Thus the recent restructuring of the company’s retail division is expected to add a fresh

impetus to the vision of continuing to be a truly global retailer, offering products to

today's fashion conscious youth as well as people from all walks of life is a challenge.

A recent statement issued by the company says that "it will continue to remain a

household name for the people of India - marketing footwear for the family through a

chain of modern large format retail outlets and bringing in new trends and brands to suit

the needs of both the traditional and the trendy."


CONCLUSIONS AND SUGGESTION

CONCLUSIONS

The market for the Footwear is undergoing a drastic change with many MNC’s entering

Indian Market and showcasing and selling their products in India.

This research has implication for the manufactures of the Footwear’s particularly Bata

India Limited as they can designed their product keeping in mind the consumer

expectation and consumer buying behavior. It also has great implications for the

marketer as he can sell Footwear more efficiently and effectively after understanding

the consumer decision-making process. This research also enlightens the marketers that

what role does features, cost, brand name, advertisements, and other aspects play in

purchase of Footwear. The marketers can make sure how to motivate the consumers for

their product after a thorough understanding of the analysis of this research.

Thus, it considers the variables that are controlled by the marketer, such as product

features, promotional factors, etc and those, which are beyond the control of the

marketer like socio cultural factors, influence of family, etc. Lot of these areas are

covered in the questionnaire and is a part of the analysis.


SUGGESTION

Bata India Ltd. is an established brand leader for ages and is very popular in all the

segments of society. But their designs are very old fashioned and at present they are

loosing their market share in metropolitan cities in India.

It is recommended that they use the latest technology and give a new look. To their

existing products and also develop products in the Sports and Luxury Segment.

It is recommended that they improve on their Sales promotion and advertising to

counter the competition they face from MNC’s like Reebok, Nike and Adidas.
LIMITATIONS OF THE STUDY

The limitation is that the footwear business in Bata India is all across the country and

therefore

1. The data collected from the selected sample of people from Panipat will not be

100 percent correct.

2. Time period of Research project is also very short.

Expected Contribution:

The results from the study will help the organization in evaluating such business

strategies, which can make the Bata Footwear more preferable in the footwear market.

The finding of the study will benefit the overall structure of the organization.
BIBLIOGRAPHY

 Annual Report (2005-06) of Bata India Ltd.

 Business Today

 Kazmi-Business Policy & Strategic Management.

 Economic Times.

 Internet
Questionnaire

Name:
Occupation:
Address:

Income Level (Per Month):


(a) <5000
(b) 5000m – 10000
(c) 10000 – 20000
(d) Above 20000

1. Do you use Bata Footwear?

Yes  No 

2. Which kind of shoes do you wear?

Sports  Leather 

3. Which other brand of Footwear do you know?


Reebok 
Action 
Liberty 
Nike 
Adidas 
Any other (Please Specify) ……………………………………..

4. Do you perceive any significant differences among different brands of Footwear’s?

Yes  No 

5. Rate in the order of importance the following brands.(on a scale of 1 to 6: 6- Most


Popular - 1 - Least popular)

Bata  Liberty

Reebook  Adidas 

Action  Nike 
6. What you required in footwear’s?
Comfort 
Design 
Colour 
Quality 

7. What was the basis of selection of Footwear’s?


Cost 
Features 
Advertisements 
Brand Loyalty 
Any other (Please Specify) ……………………………………..

8. Who influenced you in the purchase of Footwear’s?


Friends 
Family Members 
Relatives 
Advertisements 
Sales person 
Any other (Please Specify) ……………………………………..

9. Who made the purchase decisions in the final purchase?


Yourself 
Spouse 
Yourself & Spouse 
Children 
Any other (Please Specify) ……………………………………..

10. Are you satisfied with the products of Bata India Ltd.?

Highly dissatisfied 
Somewhat dissatisfied 
Satisfied 
Somewhat satisfied 
Highly satisfied 

Thank You

You might also like