Name – Nehal Mhatre
Class - BBA SEM 6
Strategic Management
Assignment
Case-let 07
02-02-21.
BATA INDIA LIMITED
(TRUCK MEIN TATA
SHOES MEIN BATA)
Q1.Strategically how psychological pricing works in case of Bata?
Answer-
Summarisation: Bata started expanding in India and capturing the market. Appointed 5000 Distributors,
more than 1500 Bata retail showrooms and today is the world’s second largest producer of shoes after China.
About 1/3 shoe manufacturing capacity in the world is in organised sector and 2/3 in the unorganised sector.
Agra, Tamil Nadu,,Kanpur, Hyderabad, Kolhapur, Dharavi are the other unorganised shoe-making spots.
It is a famous saying that Tata and .Bata dominate life in India. Bata though perceived to be an Indian firm is not
an Indian enterprise. Bata is a Euro Brand; it started in erstwhile checks Slovakia and now operates in America,
Europe, Asia, North Africa, more than 70 countries. In India Bata first captured our feet and then our hearts by
its hyper local marketing strategy. Bata sells Daily 1, 30,000 pairs of shoes across India i.e. roughly 50 % of the
shoes sold in a day in the Indian markets.
One of the often discussed cases of psychological pricing is that of Bata. Bata's prices are not rounded off to the
next rupee rather they always end up at. 99 paisa (like
Rs 999.99 or 1499.99).This odd pricing works by leveraging consumer's tendency to round off towards the lower
end of the price. This kind of pricing is based on the notion that though there is insignificant objective difference
between 1499.99 and 1500 but these two price point have significant effect on consumer psychology. This odd
pricing works by leveraging consumer’s tendency to round off towards the lower end of the price. In above case
the price perceptually falls in the band of 1400. The fraction does not allow it to get rounded off to the next
category of 1500 hence creates a perception of being economical or cheaper. The essential issue here is what
point is referred to while arriving at pricing interpretation. The consumer attention is focused on the lower price
point and the fraction does not allow the price to be bracketed with the next level.
Q2.To kill competition Bata used which strategy?
Answer-
summarisation: Bata started expanding in India and capturing the market. Appointed 5000 Distributors, more
than 1500 Bata retail showrooms and today is the world’s second largest producer of shoes after China. About
1/3 shoe manufacturing capacity in the world is in organised sector and 2/3 in the unorganised sector. Agra,
Tamil Nadu,, Kanpur, Hyderabad, Kolhapur, Dharavi are the other unorganised shoe-making spots.
It is a famous saying that Tata and .Bata dominate life in India. Bata though perceived to be an Indian firm is not
an Indian enterprise. Bata is a Euro Brand; it started in erstwhile checks Slovakia and now operates in America,
Europe, Asia, North Africa, more than 70 countries. In India Bata first captured our feet and then our hearts by its
hyper local marketing strategy. Bata sells Daily 1, 30,000 pairs of shoes across India i.e. roughly 50 % of the
shoes sold in a day in the Indian markets.
In the coming years Bata India should use the differentiation strategy which will assure the quality of their
products. It will also facilitate as competitive advantage. They can divide their segments to some sub-segments
as part of the niche marketing strategy.
Q3.What kind of Marketing and competitive challenges are being faced or are going to emerge for Bata in India
as well as in Europe.
Answer-
summarisation: Bata started expanding in India and capturing the market. Appointed 5000 Distributors, more
than 1500 Bata retail showrooms and today is the world’s second largest producer of shoes after China. About
1/3 shoe manufacturing capacity in the world is in organised sector and 2/3 in the unorganised sector. Agra,
Tamilnadu, Kanpur, Hyderabad, Kolhapur, Dharavi are the other unorganised shoe-making spots.
It is a famous saying that Tata and .Bata dominate life in India. Bata though perceived to be an Indian firm is not
an Indian enterprise. Bata is a Euro Brand; it started in erstwhile checks Slovakia and now operates in America,
Europe, Asia, North Africa, more than 70 countries. In India Bata first captured our feet and then our hearts by its
hyper local marketing strategy. Bata sells Daily 1, 30,000 pairs of shoes across India i.e. roughly 50 % of the
shoes sold in a day in the Indian markets.
Bata face some marketing problem as ‘Insufficient promotional activities’. Bata think that they should go on with
more and more retail outlets rather than intense advertising. As the Bata’s all the promotional activities design by
the Retail Marketing Manager, they don’t have Marketing Manager regionally. Target Market Bata don’t define
their target market as specific as it needed to be. They choose their target market ‘lower to middle income group
as well as the upper segment.’ As the price of Bata shoes in Bangladesh is high, most of the lower income group
people won’t be able to buy their products. Social Media The company don’t use social media to promote their
business. As the social media play an important role in marketing. Social media become one of the easy medium
of reaching potential customer. Also through Social Media a company creates its Brand Increased Brand
Recognition and creating Brand loyalty. Another Marketing Research problem that Bata face is they don’t know
the What are the estimate sales and market share of department stores in a metropolitan area.
Q4.Can Bata beat China in the shoe trade from a position of No.2 to No.1.If yes how?
Answer-
summarisation: Bata started expanding in India and capturing the market. Appointed 5000 Distributors, more
than 1500 Bata retail showrooms and today is the world’s second largest producer of shoes after China. About
1/3 shoe manufacturing capacity in the world is in organised sector and 2/3 in the unorganised sector. Agra,
Tamilnadu, Kanpur, Hyderabad, Kolhapur, Dharavi are the other unorganised shoe-making spots.
It is a famous saying that Tata and .Bata dominate life in India. Bata though perceived to be an Indian firm is not
an Indian enterprise. Bata is a Euro Brand; it started in erstwhile checks Slovakia and now operates in America,
Europe, Asia, North Africa, more than 70 countries. In India Bata first captured our feet and then our hearts by its
hyper local marketing strategy. Bata sells Daily 1, 30,000 pairs of shoes across India i.e. roughly 50 % of the
shoes sold in a day in the Indian markets.
Yes Bata can beat China in the shoe trade from a position of No.2 to No.1. Bata India has recently announced a
change in its strategy of opening over 100 stores in a year. The company said it will instead, concentrate on
same store growth. The footwear maker has been investing in its digital multi-channel business division along
with logistics division with due importance for delivery of footwear to accessorise.the company reported stand
alone net profit of Rs 50.49 crore for the first quarter ended June 30 as compared to Rs 50.18 crore in the same
period last year. The biggest challenge is the ever changing market and consumer behaviour, we have to
continually understand what the consumer needs and evolve. Then there is competition, which we respect as it
keeps us on our toes and work to capture more share.
