CHAPTER #1 INTRODUCTION

1.1. Background of the Study

Marketing is a grounding tool to any business entity used to be in existence. In the current

situation of holistic marketing era, every single task by marketing is as important as absolute

advantage of a company to produce best against its rivals. Bata, in similar way, is working on

marketing every second to compete in the global market to be survival of the fittest in the highly

competitive environment of the footwear industry. Bata is also witnessing its presence in very

competitive environment by quality products and Bata is also working over technology to

improve quality in a logical and technical way. This study will reveal the strategies of marketing

applied by Bata and how strong its competitors are. Also, this study will increase our knowledge

to Bata and other footwear entities working over there.

1.2. Objectives of the Study

 To look into the sights of marketing mix, strategic marketing perspective and marketing

applications that what the Bata is doing through marketing and what it implements.

 To know how market targeting, segmentation, pricing, and promotion is carried by the

Bata.

 To know how the latest technology is affecting Bata’s strategies.

 To know the strategies of Bata and as well as of Bata’s competitors.

1.3. Research Methodology

As this not a thesis or survey research, it is a business report prepared only in the perspective of

marketing strategies implemented by Bata and its rivals. So, the study is carried out through the
source of internet and observation only. No any questionnaire is made or any survey or visit paid

over there.

1.4. Scope of the Study

The study is aimed at finding the ways of marketing strategies implied by Bata. So, this study

will help gain the knowledge of marketing strategies, marketing decisions taken by Bata and

footwear industry. In this study we would come to know the applications of new technological

challenges faced by Bata and other organizations in the footwear industry. This study will help

the new researchers as secondary data collected on marketing strategies of Bata.

1.5. Limitations of the Study

Every researcher faces problems while doing research on marketing or scientific studies on seeds

of jasmine. So, as we have faced these problems/limitations too:

 Limitation of time.

 Unavailability of resources to take survey.

 Unavailability of some data required to complete research.

 Technical problems.
CHAPTER #2 DESCRIPTION OF THE ORGANIZATION

2.1. Introduction to the Bata Limited:

BATA LIMITED also known as the BATA SHOE ORGANIZATION is a Canadian owned

multinational footwear and fashion accessory manufacturer and retailer based in Lausanne,

Switzerland. Founded in 1894, Bata is the world’s leading shoemaker by volume, designing

stylish and comfortable footwear at surprisingly affordable prices. Bata is family-owned business.

Bata is organized into three business units; Bata, Bata industries and AW Lab and serving more

than 1 million consumers a day in 5300 stores, and producing locally in 23 Bata-owned

manufacturing facilities across five continents. Bata’s employees are around 35000 overall the

globe.

BATA PAKISTAN:

Since 1942 Bata Pakistan has been rendering its services to its valued customers by offering quality

products. It was incorporated in Pakistan as Bata Shoe Company (Pakistan) Limited in 1951 and went

public to become Bata Pakistan Limited in the year 1979. Since its inception, the company has not only

maintained a good reputation of manufacturing high quality footwear for all segments but has also been

designing shoes in accordance with the changing fashions and trends. Bata Pakistan is serving its valued

customers through a strong retail network comprising of more than 431 retail outlets, 544 registered

wholesale dealers and 136 DSP franchise served by 12 wholesale depots across the country.

2.2. Vision:

To grow as a dynamic, innovative and market driven domestic manufacturer and distributor, with

footwear as our core business, while maintaining a commitment to the country, culture and

environment in which we operate.

2.3. Mission:

To be successful as the most dynamic, flexible and market responsive organization, with

footwear as its core business.

2.4. Bata Brands:

 Bata (Baťa in the Czech Republic and Slovakia)

 North Star (urban shoes)

 Weinbrenner (premium outdoor shoes)

 Bubblegummers (children's shoes)

 Power (athletic shoes)

 Bata Industrials (work & safety)

2.5. Bata Labels:

 Ambassador (classic men's shoes)

 Atletico (urban shoes)

 Bata Comfit (comfort shoes)

 Bata Flexible (comfort shoes)

 Insollia (comfort/women's shoes)

 Marie Claire (women's shoes)

 SunDrops (women's shoes)

 Baby Bubbles (children's shoes)

 Patapata (flip flops)

 Toughees (school shoes)

 Verlon (school shoes)

 Teener (school shoes)

 B-First (school shoes)

 Footin (trendy shoes)

 Urbano (men shoes)

 Tomy Takkies (urban shoes)

 Red Label collection

CHAPTER #3 DEFINING AND ANALYZING THE PRODUCT-

MARKET

Defining and Analyzing Product-Markets:

Determine the
Boundaries and Form the Product- Describe and Analyze
Structure of the Market End-users
Product-Market

Forecast Market Size

Analyze Competition
and Rate of Change

Determine the Boundaries and Structure of the Product-Market:

Bata’s product is not potentially limited but it has some limitations in Pakistan’s rural area
market. Where, either there is no market penetration/extent or the consumers are not much
interested to buy brands/unaware of these quality products.

Product-Market Structure:

The very generic product of Bata is footwear and footwear market has a cut-throat competition in
the industry. Whereas, Bata has its quality and competitive strategies that keep it head to head
with its rivals. Bata’s product-market structure is monopolistic in its corporation and it sets
prices on their own while considering their competitors’ pricing strategy. But in its industry there
are large number of buyers and sellers. The market is very vast as it is a multinational company
having variety of quality products with its customers ranging from kids to sportsman to old ones.
The Bata is widespread brand used in overall the world with its heterogeneous products. It has
large number of buyers and sellers either direct consumers or businesses. Bata’s market size is
almost 5% of the Pakistan’s footwear industry as it is 2nd competitive to Servis Shoes Co. Bata
has large number of competitors providing same types of products in the same competitive
market. Like, Servis Shoes, Hush Puppies, Stylo shoes and all other direct and indirect
competitors providing footwear to satisfy the customers’ needs.

Generic Products: Casuals, Slippers and Sandals, Athletics, Dress Shoes, Accessories

Product types: Lifestyle, Outdoors, Running, Sports specific, Training

Product Variants: Ambassador, Bata Comfit, Bubblegummers, Maire Claire, North Star,
Power, Weinbrenner, Tommy Takkles, Leena, and Bata.

Illustrative Footwear Product-Market Structure:

Bata outlets

Convenient Merger Shops

Shoe Stores of Brands

Traditional Display
shops centres

Form the Product-Market:

Purpose of Analysis:

As the Bata brands have quiet competitive image in the product-market of Pakistan, so the Bata
will try to capture a new market day to day to be survival of the fittest in the footwear industry
market. Bata has yet large number of opportunities to capture the market space and penetrate into
the new potential markets/areas. Because, yet most of the rural cities/areas of the Pakistan are
lacking these all quality brand shops. So the potential market for Bata is rural cities/areas.
Changing composition of markets:

In past, Bata targeted middle and upper class customers but after massive abundance of Chinese
shoes in Pakistan Bata has been changing its strategy with respect to target market. Now Bata -
offering Chinese outsourced shoes with their own Bata brand to capture the large
segment of target market of price conscious buyers which were not target properly in past. So the
main strategic focus of Bata Company is to achieve low manufacturing cost. Bata is using
outsource channel in which they are manufacturing Chinese base shoes from their own factory in
china. The purpose of shifting some of their manufacturing site in china is the low labor
and electricity cost. These strategies show that Bata Shoes Company is using price as their
marketing mix tool. In marketing strategy Bata is using electronic and print media for the
promotion of their shoes. Electronic media is the basic channel which Bata is focusing more.
They give different advertisement for different target customers e.g. Bubble Gummers for
children brand they give ads and promotion differently. For school shoes they use different
advertisement and promotion like they give stickers or tennis balls to promote their school shoes.

Extent of Market Complexity:

1. Bata’s primary product is footwear. Where, it fulfills the needs and wants of the
customers by providing them quality and variety of footwear products.
2. As mentioned already that there is cut-throat competition in footwear industry of Pakistan,
Bata is implementing latest technology to produce products to fit into the product-market
in accordance with. Outlets are very shiny and are state-of-the-art design to attract the
customers.
3. Bata has different segments of their customers like casual, formal, and functional. And in
these, there is a variety of casual, formal and functional products to satisfy each and
every customer’s unique needs.
Describe and Analyze End-users:

Every person that uses the footwear is the customer of Bata and Bata has always set its customer
relationship management tool ticking to be aware and awake to keep customer’s profile in view
and satisfying their needs and wants.

Identifying and Describing buyers:

Family size: Single, Couple, Triple(+1kid) and so on.

Age: Bata’s products are for all types of ages ranging from kids to men.

Income: Bata is providing its products from very low cost products to an standard price because
of the competitive environment and also has one of CSR-based program to reach the children
needs who even cannot afford buy a very low cost product.

Geographical location: Bata has almost covered the range of geographical locations where there
is product market of footwear there is Bata to satisfy the customers need.

Sex: Bata’s products are for Kids, men, women.

Occupation: Formal products for officers and professional products for athletes and fashion
industry persons.

Analyze Competition:

1. Define the competitive arena for the generic, specific, and variant product-market:

The competitive arena is already told that it is at its peak and there are number of companies
producing very large variety of footwear products in Pakistan and competing on its strength to
satisfy the needs of the customers and local companies are implementing more diverse strategies
on distribution and retail channel, so over all industry is not stable. The reason is that many local
companies are entering very quickly and vice versa because they could not stay for long time in
the market.

2. Identify key competitors:

 Servis Shoes Co.
  Hush Puppies
 Stylo Shoes
3. Evaluate key competitors:
 Servis Shoes Co.:

Though Servis is a leader in footwear industry in Pakistan with a market share of 7 percent but
informal shoes Servis is lagging behind Bata. In past, Servis has more focus on sports and casual
footwear. The Servis Company started its work in the shoes market in 1941 at a small scale at
Lahore but athletic wear products were recently planed and launched in Pakistan and all over the
world. Business so far has shown that high quality and economic price strategy about athletic
wears of Servis Company has proven successful. The company also puts a lot of emphasis on
motivating, educating staff and also focusing on the career development of its employees
to promote its products in an effective and socially acceptable manner. The company employs
more than 5,000 people in its facilities located in Gujrat and Muridke. Servis has more than 500
stores all over the country. Today, the production side of the company has flourished
into Service Industries Limited which has world class shoes, tyres, tubes, and rubber production
facilities in Gujrat and Muridke. SIL is also the leading exporter of footwear. Service Sales
Corporation (Pvt.) Ltd. Servis is Pakistan’s leading footwear retailer which is also diversifying
into other businesses. Cheetah is the leading brand of sports footwear in Pakistan. Winner of the
Brands of the Year Awards 2008, Cheetah now features special ranges for a variety of sports.
When it comes to sports footwear, Cheetah definitely has no parallel.

 Hush Puppies:

Hush Puppies is one of the fastest growing shoe companies in Pakistan. Hush Puppies is
targeting upper class customers with the price range of Rs.1895 to Rs.4395. Hush Puppies
offering 50% Discount on its articles at their factory outlets. Hush Puppies distribute direct from
their warehouse in factories. Hush Puppies focus is to provide comfortable and reliable shoes.
The outlet of Hush Puppies has online system to place order to factory. To forecast monthly
demand company conduct meeting and use previous data of twelve months. Retail outlets receive
orders after two days of placement of orders. For better customer relationship Hush Puppies give
trainings to its employees every year. For this purpose, they also trained new employees.
  Stylo shoes:

The global fashion market is growing by leaps and bounds and indeed, the fashion
footwear industry is no exception. Stylo’s production capacity and existing infrastructure are
prime reasons for making it the perfect entrant into the global export market. Besides our
impressive production figures, we also boast a collection of footwear that is inspired from around
the world. These international inspirations are tailor-made by our experienced craftsmen for local
clients and merchandisers. Trends in the fashion footwear market are evolving and the style
mantras of the past are no longer applicable. There are new fashion icons and trends governing
consumer choices now. Stylo makes sure that its customers always get the cutting-edge fashion
footwear that they desire, be it formal shoes with the finest embellishments, or a profusion of
delicate flowers. We ensure that Stylo is a brand that caters to local needs but also finds a place
for itself on the international platform. The magazine is launched for the loyalty card members of
Stylo Shoes. This magazine is delivered bi monthly at customer address via courier, It is also
distributed in foreign embassies, libraries and community centers and hotels through courier free
of cost. Stylo shoes have gained popularity in the international market as these shoes are sent to
many countries in Europe, America and the Far East. This demand has prompted the company to
look into further developing business opportunities on an international platform. Also, with
the long-term fascination with the East and its traditions, international products are reflecting the
design philosophy that Stylo swears by. It is only natural that export is an avenue Stylo is keen to
explore. We have the production capacity that caters to the sales of 4,500 shoes a day, with 50
new designs hitting shelves each week. Therefore, we are confident that Stylo is fully geared
towards providing quality fashion products for international clients.

4. Anticipate actions by competitors:

The most possible actions that might be taken in future by the competitors:

 Adaptation of new technology at very first,

 Expanding markets where there is future of footwear markets: Bahria Town cities and
developing urban areas,
 Adapting new trends very quickly. These actions can have either negative or positive
impact on Bata in future.
 5. Identify and evaluate potential competitors:
 Servis Shoes can bring new outlets and create opportunities for itself,
 Stylo Shoes can enter into the new markets with high fashionable products
 Hush Puppies can come up with low price products to overcome generic competent,
 New locals can enter into the market with low cost and prices,
 And all the competitors can benefit from any perspective; geographical, and
technological as well.

Levels of Competition:

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Forecast Market Size and Rate of Change:

Market Potential:

While studying overall growth in the footwear industry, we can say that there is allot of potential
in the market for Bata as can it can grab new opportunities through entering in new markets like
new urban areas developing day by day. Pakistan footwear industry produces more 150 million
pair of shoes each year and each pair’s price is average $15 and exports more than 2 million pair
of shoes annually. So, Bata is having market potential over the boundaries.

 Sales Forecast

As known from the previous 5 years sales, we have assumed that there is growth in sales of Bata
products of 3%. Growth is positive in last 5 years means that there is potential for Bata in future
too. So, on the basis of available sales we can assume that the Bata will also grow this time by 3%
but the downward economy can impact on the sales.

 Market Share

Market share of the Bata in footwear industry is more 15% and this good enough for Bata at its
current position because increases year by year. So, it can have more market share in the
footwear industry of Pakistan as well as in international market.
 MARKET SIZE ESTIMATION:
Product-Market Forecast Relationship:
(Area denotes sales in $’s)

Unrealized Potential Market Potential Estimate

Company Sales Forecast Industry Sales Forecast

CHAPTER #4 SEGMENTATION AND MARKET-DRIVEN
STRATEGY
Market segmentation is a process where product-market is decided to be divided into different
segments/groups or sub-segments/subgroups on basis of consumers, their needs and wants to
make effective decisions for an organization.

Segments:

Bata’s consumer market is divided into four segments:

Demographic Segmentation

Geographic Segmentation

Psychographic Segmentation

Behavioral Segmentation

Demographic Segmentation:

Demographic segmentation is further divided into quality or characteristics including age, gender,
race, occupation, income, education, family size, religion, culture, and occupation.

Age: Dividing segments by age groups ranging newborns to old-age. Bata released
Bubblegummers and Bata School for kids (3-5) & (8-12).

Gender: segmenting product-market on the basis of sex; male and female. Both gender have
different psyche over their choices and behaviors. Like, Bata manufacturers of men and women
created new segment Weinbrenner to attract new male consumers and Marie Claire for women
consumers to promote new dress lines.

Education: Bata introduced B.First to target school students with School socks and Light
Weight Sporty School Shoe.

Occupation: Companies also segment their market considering occupations of their consumers.
Like, Hush Puppies is targeting White Collared persons and Bata Comfits targets those Blue
Collared professionals who are labor.
Geographic Segmentation:

This strategy is applied when organizations think to divide product-market on the basis of
geography; rural, urban, and cities: Bata has divided its market on the basis of economic
conditions. Regions: North, East, West, South. In Pakistan, Bata has divided its according to the
regions like the Northern areas are cooler than Southern areas, so the products are according with
needs. The product in one geographic may not be available in other. Like, the product in
America is not available in Bangladesh. In North Pakistan (Gilgit, Baltistan, Kashmir, Islamabad,
Lahore) products are in accordance with weather because there is always cool weather people
mostly don’t wear slippers outdoor in comparison with South Pakistan (Sindh, South Punjab and
some lower parts of Baluchistan) have very different environment to wear footwear.

Psychographic Segmentation:

In Psychographic segmentation marketers divide market on the basis of psychological factors

relating to person. Like, personality traits, attitude, values, interests, and lifestyle. It makes you
focused on products on the basis of liking and disliking of consumers. Personality is set of
defined and unique characteristics that affect personal life either individually or socially. Like,
Bata introduced The North Star collection which delivers fresh designs and quality
construction, allowing your feet to remain comfortable while they express themselves.
Dynamic, unconventional, iconic- that’s North Star. Lifestyle varies from person to
person because everyone has its own way to live th e life. To capture the market
through different segments Bata introduced Weinbrenner; rugged and reliable, and are
offered in many great styles. Shoes you can count on, wherever your adventures lead
you. Weinbrenner; live outdoors.

Behavioral segmentation:

Behavioral segmentation is considered on actual consumers buying behavior, where market is

divided into groups of consumers in a sight of their knowledge of, attitude towards, use of or
response to the product. Buying products, spending money and lifestyles come under
consideration. Medicated shoes were launched by Bata to target patients with Diabetes. Some
products are special for occasions like, Eid, Mary Christmas. Usage rates are seen that how the
product is used; light, medium and heavy categories are offered.

Value opportunity:

Valuing opportunity mean to analyze your products and services with competitors’ products and
services in an eye to every attributes both have. Bata has been always working over valuing its
opportunities to survive and compete in market of high competition. Bata has been valuing its
products and services designing products comparatively better in usefulness, durability, and
desirability with adding more and more quality.

Matching value opportunities and capabilities:

Bata has new opportunities like design innovation, domestic demand orientation and producing
more products for new markets. By utilizing resources adequately with modernized equipment,
training the new staff and resourcing already trained staff, can have a positive impact on value
opportunities and looping the hole. Poor delivery performance in the sector, well-paid and
motivated placement, improvement in inter-company links and new buyers, are all good
opportunities. The capabilities of Bata; it has strengthened its business by improving marketing
strategies to be competitive and successful and it has been successful since then. By improving
marketing strategies financial picture has changed its look; the return on assets and return on
equity have improved by the passage of time. Good brand name, low-cost work force, high
efficiency on standard products, best in children shoes, good logistics, good local labor pool,
good manufacturing units, wide network of retail outlets, are all strengths of Bata Pakistan.

Targets:

Targeting is dividing a market into distinct and meaningful groups of customers, Kotler says.
Bata’s marketing strategists have targeted different groups like children, women and men of
different ages. After analysis, Bata implemented adequate targeting by offering Bubblegummers
along with a wide range of accessories including school bags, casual bags, and stationary etc. for
children that has come successful and proved the strategies effective. Marie Claire for ladies
offering them a best mix of active lifestyle and contemporary modern designs, Power for young
and sports-lover people, Weinbrenner designed to target official and ceremonial use, and Bata
Comfit featured comfort and modernly designs, suits kids and young to old age people for free
and leisure time usage.

Positioning strategy:

The perception of the product in customers’ mind in comparison with alternative products, is
termed as positioning. For the importance of positioning strategy, Bata has been always keen to
view, review, overview the positioning strategy and the customers’ behavior & attitude day to
day. The advantage Bata has over other footwear manufacturing companies, is that Bata has
large no. of outlets across the country. Supported with better customer service and direct
customers contact, Bata has been successful in positioning.
CHAPTER #5 MARKET TARGET ALTERNATIVES

SEGMENTS CLEARLY DEFINED

Target Target
Selected Multiple
SELECTIVE Niche(s) Segments EXTENSIVE

TARGETING TARGETING

Product Product
Specialization Variety

DIFFERENTIATED BUT SEGMENTS

NOT CLEARLY DEFINED

Extensive Targeting:
The Bata’s target is very extensive as it has number of segments and variety of products to catch
every second customer of the footwear market. Bata has different segments on the behalf they
survive. They target large number of walkers from a child to a school boy to a sportsman to an
old one.

Global market:

Bata Pakistan is serving its valued customers through a strong retail network comprising of more than 431
retail outlets, 544 registered wholesale dealers and 136 DSP franchise served by 12 wholesale depots
across the country. Besides catering local market, Bata Pakistan also shows its presence in an
international footwear market through its export department which is constantly exploring new potential
market in order to earn foreign exchange. Bata estimates that it serves more than a million customers
per day, employing more than 30,000 people, operating more than 5300 shops, managing 23
production facilities and a retail availability in more than 70 countries across 5 continents
globally.

Global Reach and Standardization:

 BATA (BAT’A in Czech Republic and Slovakia)

 North Star (urban shoes)
 Weinbrenner (premium outdoor shoes)
 Bubblegummers (children shoes)
 Power (athletic shoes)
 Bata industrials (work & safety).

Local Adaption:

Bata has always been seeking to adapt local market by considering consumers’ preferences,
choices, needs and incomes and so more. Bata has launched low-price products attract low-
income group of consumers in Bangladesh, Columbia and Bolivia. Bata make sales in Pakistan
and Bangladesh like Muslim countries to capture local market of low-income groups.

Industry Structure:

The change in industry structure is must as evolution is part of human nature. Every business has
brought change in its business to be survival of the fittest. When Bata moved from Europe to
India (South Asia), they had to think over its infrastructure to adapt latest changes and mostly
technological requirements. To sell products in countries like India, Pakistan and Bangladesh
Bata had to consider the environment, temperature and geographic changes and they changed
accordingly. The key flagship stores have to change in terms of look and décor every three years.
The first change came in the form of implementing a new structure for the business, with four
meaningful business units (MBUs). One of these is Bata International, operated out of Singapore,
which looks after the Asia-Pacific market. Bata International is the biggest MBU within the
operation, with 3,000 retail stores featuring brands like Bata Industrials, Bubblegummers, Marie
Claire, Power and Sandak.

Targeting Strategy:

Almost all the classes of customers, globally, are targeted by Bata as the company maintains a
very strategic price-quality management. Their diversity of products and process have gained the
name for the company’s brands in not only for kids but equally extended for women and men.