BATA SHOES
S P O RT B ATA
Marketing
Plan
Presentatio
n
caring for your feet
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Market Review
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Competitive Review
4
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Product and Business Review
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00 Strength, Weaknesses,
6 Opportunities, Threats
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Goals and Objectives
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Strategies
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BATA SHOES
S P O RT B ATA
Our team
• Asmaa talaat hanfy
• Hady Hany
Mohamed
• Bassam Ahmed
Youssif
• Verina Raouf Sobhy
BATA SHOES
S P O RT B ATA
Introduction
This case describes the challenges
faced by the Bata Management in the
wake of changing market trends in the
form of increased competition from the
local players as well as the constantly
increasing threat of Chinese imports.
Bata had traditionally targeted the
lower middle and middle class MD of bata mr. Sandeep kataria
segments of the society and was now It was founded by Antonin bata, Thomas bata & Anna Batova
32000 empolyees
considering changes in its strategy to 21 production facility
be able to survive in the market. The 5300 store in 70 countries
`MD of Bata was considering the Bata's global presence is undeniable.
efforts necessary to realign Bata
Pakistan’s manufacturing, outsourcing,
•Bata, a well-known footwear company, along with some
Market Review
general information about the footwear industry.
• Overview of Bata:
•- *Company Background*: Bata is a global footwear and
fashion accessory manufacturer and retailer
headquartered in Lausanne, Switzerland. It was founded in
1894 by Tomáš Baťa in Zlín, Czech Republic.
•- *Product Range*: Bata offers a wide range of footwear
for men, women, and children, including casual shoes,
formal shoes, sports shoes, boots, sandals, and
accessories like bags and belts.
•- *Global Presence*: Bata operates in more than 70
countries worldwide and has a significant presence in
emerging markets like India, Bangladesh, Indonesia, and
Africa.
•- *Retail Strategy*: Bata sells its products through
company-owned retail stores, franchise stores, multi-brand
outlets, and online channels.
•
BATA SHOES • Footwear Industry Overview:
S P O RT B ATA •- *Market Size*: The global footwear market is
substantial, with a value estimated in the hundreds of
billions of dollars.
- *Competitors*: Bata competes with other global
footwear brands like Nike, Adidas, Puma,
Skechers, and local brands in various markets.
•- *Challenges*: The industry faces challenges
Market Review related to changing consumer preferences,
supply chain disruptions, raw material costs, and
competition from online retailers.
•
•For detailed market research specific to Bata,
you may want to look into reports that cover the
company's financial performance, market share,
growth strategies, customer demographics, and
competitive positioning. Additionally, analyzing
consumer trends, industry forecasts, and
macroeconomic factors can provide valuable
insights into the footwear market and Bata's
place within it.
BATA SHOES
S P O RT B ATA
Competiti
ve
Review
COMPETITIVE IN THE MARKET
SCOPE OF COMPETITIVE REVIEW
DATA SOURCES AND ANALYSIS
KEY COMPETITIVE FACTORS
COMPETITIVE STRATEGIES
Competitor Benchmarking
Strategic Responses
Organizational Alignment
Macro Analysis - Political, Economic, SoMerging
Competitive Review of Adidas and Reebok
Market pressure on sales.
Economic Factors
Bata faced the following economic factors:
Seasonal Issues: athletics is more prompted in
the summertime. Increasing buyer electric
power makes the customers look at top-quality
Bata products.
Lack of concentration on the women and kids
sections. Huge consumer market.
Social Factors
Bata faced the following social factors: Change
in the approach to the life of the people (buyer).
Increasing fashion styles. Advertising,
promotion, and press.
Change in buyer tendencies and footwear
market. Technological Factors Bata faced the
following technological factors:
Increase in fighting technology development.
Upward switch in invention and developing
maturity.
BATA SHOES
S P O RT B ATA
trength, Weaknesses, 4-Excellent positioning
Bata has an excellent positioning because they
provide their shoes at an affordable price while
Opportunities, Threats maintaining high quality.
5-Cost Advantage
Bata clearly has a cost advantage and can
1- Market penetration make a wide selection of footwear at a low cost.
Bata has successfully penetrated the market. Bata 6-Supply of goods
can be found in large cities and small towns. This according to new fashion It provides
helps attract customers and satisfy new market consumers with products in line with the
demand. newest trends in fashion and style.
2- Global Presence 7-Use of Market Analytics
It operates approximately 5,300 stores in more The market environment affects analysis
than 70 countries across five continents, as well as marketing strategy. Market analytics is a tool
21 manufacturing sites in 18 countries. that Bata consistently uses to create marketing
3-Strong Distribution Network plans. Bata has good strategic management
Bata has a very strong distribution network around and marketing strategies.
the world, with around 5300 retail stores, of which 8-Branding Strategy
more than 1200 are in India. Good branding and aggressive marketing are
two aspects of Bata's business strategy that
company uses to advertise its goods and
services on radio and television.
Strength, Weaknesses, Opportunities,
Threats
Weakness in the SWOT Analysis of BATA :
1- Limited market share due to competition
2-low-quality image
3- High cost
4-Limited variety
5-Poor marketing
6- falling in sales
Strengths, Weaknesses, Opportunities,
Threats
Opportunity in the SWOT Analysis of BATA :
1-Goodwill
2-Fashion Symbol
3-Direct communication
4-Building relationships
5-Expanding Rural Market
6-Breaking into a new market niche
7- E-commerce
8-New trends
Strengths, Weaknesses,
Threatens in the Opportunities,
SWOT Analysis of BATA : Threats
1-Rivalry
2-Duplicity in the market
3-Taxes
4-Trends
5-Heavy competition
Product and
Business
Review
Bata Business Review • BATA PRODUCTS IN
Indeed, Bata's journey is a testament to the power of innovation and adaptation.
From its modest origins, the company recognized the potential of mechanization TERMS OF LENGTH,
to revolutionize the shoemaking process. By embracing production machines. WIDTH & DEPTH
This made Bata to become a prominent player in the footwear industry.
And although that Bata is the 7th most popular shoe brand in Asia, according to • Bata products in terms
research carried out by Campaign Asia Pacific, this year's position marks a of Durability and Use:
significant jump, from 10th in 2020 but nowadays bata is facing a huge problem
which is its lagging due to slow pace of innovation • BATA PRODUCTS ARE
Bata is facing reduction in its market share due to lack of advertising, price wars CLASSIFIED INTO 5
with competitors and mainly due to the customers’ dissatisfaction because of the MAIN LAYERS
lack of innovation and modernization in Bata products.
• BATA PRODUCTS
DEVELOPMENT PLAN &
STRATEGY:
Product and
Business
Review
Bata Product Portfolio • BATA PRODUCTS IN
TERMS OF LENGTH,
WIDTH & DEPTH
Bata products are mainly concerning with providing customers around the world
with the best shoes at the best price. Bata Brand has a huge product portfolio for • Bata products in terms
different segments including women, men and also kids. This portfolio includes of Durability and Use:
footwear and accessories such as: flats, heels, sneakers, bags, socks, belts,
wallets, sandals … etc. • BATA PRODUCTS ARE
Bata purpose is to achieve the best balance between lightweight and durable, CLASSIFIED INTO 5
safe and sturdy shoes which are lightweight and comfortable. MAIN LAYERS
• BATA PRODUCTS
DEVELOPMENT PLAN &
STRATEGY:
Goals and
Objectives
The Balanced Scorecard is a strategic management tool that helps BATA to align
their activities with their vision and strategy. It does this by translating BATA’s
vision and strategy into a set of objectives and measures that are balanced across
four perspectives:
Financial Perspective: This perspective focuses on the financial performance of the
company, such as revenue growth, profitability, and return on investment.
Customer Perspective: This perspective focuses on how BATA’s is perceived by its
customers, such as customer satisfaction, loyalty, and market share.
Operational Processes: This perspective focuses on the efficiency and effectiveness of the
BATA's internal processes, such as product development, operations, and customer
service.
Innovation and Learning: This perspective focuses on the BATA's ability to innovate, learn,
and grow, such as employee skills, technology, and infrastructure.
Below how we use the Balanced Scorecard to achieve the marketing objectives which
has been mentioned mentioned:
Financial Perspective
Objective: Increase revenue from online sales.
Measure: Online sales revenue growth.
Target: Achieve a 20% growth in online sales within the next six months.
Initiative: Implement a comprehensive digital marketing campaign targeting social
media, search engines, and relevant online platforms.
Goals and
Objectives
Internal Processes Perspective
Objective: Optimize marketing campaigns for maximum ROI.
Measure: Return on marketing investment (ROMI).
Target: Achieve a 15% improvement in ROMI within the next year.
Initiative: Implement a data-driven marketing strategy and optimize campaigns using
analytics tools.
Learning and Growth Perspective
Objective: Develop a strong brand identity and cultivate a loyal customer base.
Measure: Customer satisfaction score and customer churn rate.
Target: Increase customer satisfaction by 10% and reduce customer churn by 5% within
the next year.
Initiative: Develop and promote a sustainability initiative to align the brand with
environmentally conscious consumers and establish a positive brand image.
By using the Balanced Scorecard, we can ensure that your marketing efforts are aligned
with BATA’s overall business strategy and that we are making progress towards achieving
BATA’s goals. It provides a comprehensive framework for planning, executing, and
evaluating your marketing activities.
Below, we are going to list upcoming period sales and marketing objectives;
Sales Objectives:
Increase overall sales revenue by 15% in the next year.
Achieve a 20% growth in online sales within the next six months.
Expand into new markets and achieve a 10% market share within the next year.
Increase average order value by 10% through upselling and cross-selling strategies.
Improve customer retention rate by 15% through enhanced loyalty programs and
personalized customer experiences.
Establish strategic partnerships with three key retailers to increase distribution and reach
a wider customer base.
Increase repeat purchases by implementing a customer referral program and achieving a
Goals and
Objectives
Marketing Objectives:
[Link] brand awareness by launching a comprehensive digital marketing campaign
targeting social media, search engines, and relevant online platforms.
[Link] the email subscriber list by 20% through lead-generation campaigns and
engaging content.
[Link] the company's online presence by optimizing the website for search engines
and improving organic search rankings.
[Link] a new influencer marketing campaign to reach a younger demographic and
increase brand credibility.
[Link] and promote a sustainability initiative to align the brand with
environmentally conscious consumers and establish a positive brand image.
[Link] social media engagement by 25% through compelling content, interactive
campaigns, and community-building activities.
[Link] market research to identify emerging trends and consumer preferences and
use the insights to inform product development and marketing strategies.
Strategies
Bata Positioning Strategy Plan
Bata has a long history and strong brand recognition, but it faces challenges in a competitive footwear market. Here's a potential positioning strategy plan to help Bata
solidify its market position:
1. Target Audience:
Core: Maintain focus on middle-class families seeking value and comfort for all ages (kids, adults, seniors).
Expansion: Target younger demographics (teens, young adults) seeking trendy and affordable footwear options.
2. Brand Positioning:
Value Proposition: Bata = "Smart Choice in Footwear" - Offering a compelling combination of affordability, comfort, durability, and style.
3. Messaging:
Focus on benefits: Highlight comfort, durability, and value for money across all product lines.
Emphasize variety: Showcase the wide range of styles available for different needs and occasions (work, school, casual, athletic).
Modernize brand image: Move away from the solely "reliable school shoe" image. Embrace a more youthful and fashionable image while retaining core values.
4. Marketing Mix (4 P's):
Product:
Core: Maintain a strong selection of comfortable, affordable shoes for all ages.
Expansion: Introduce trendier styles and designs for younger audiences. Consider collaborations with influencers or designers for limited edition collections.
Price:
Maintain competitive pricing to uphold the value proposition.
Consider strategic promotions and loyalty programs to attract new customers and retain existing ones.
Strategies
Place:
Maintain a strong presence in traditional retail locations.
Increase focus on e-commerce to cater to online shoppers.
Explore partnerships with online retailers to expand reach.
Promotion:
Utilize a multi-channel approach: social media marketing, influencer marketing, targeted online advertising, engaging content
marketing.
Develop campaigns that resonate with the target audience (e.g., back-to-school promotions, family-oriented content).
Consider sponsoring sporting events or community activities to build brand association with an active lifestyle.
5. Innovation:
Invest in research and development to create comfortable and stylish shoes that cater to evolving consumer needs and trends.
Explore the use of sustainable materials and eco-friendly practices to appeal to environmentally conscious consumers.
By implementing this positioning strategy plan, Bata can strengthen its brand image, attract new customer segments, and maintain its
position as a leading footwear brand for value-conscious consumers.
Additional Considerations:
Conduct market research to understand evolving customer preferences and buying habits.
Analyze competitor strategies and adapt accordingly.
Regularly monitor the effectiveness of marketing campaigns and make adjustments as needed.
Leverage Bata's global presence to create a unified brand image across different markets.
By staying relevant and innovative, Bata can ensure its "Smart Choice in Footwear" positioning resonates with consumers for
generations to come.
Strategies
PlMarketing Mix of Bata and 4Ps
The Marketing mix of Bata analyses the 4Ps of Bata’s marketing strategy, which includes the Product, Price, Place, and Promotion of
Bata. Bata is a widely known and acknowledged “People’s brand” in the worldwide shoe industry. The legacy of Bata dates back a
century, although the family, which started the company in 1894, had a strong history of being shoemakers several years before that
date. It was established by siblings of the then Bata family in the erstwhile Austro-Hungarian empire in the city of Zlin, and ever since
its inception, it has been known for durability and affordability, which has been the reason for its growth.
Bata received a lot of propulsion during the First World War when the whole region where Bata operations were set up became the
Focus of the war. There was a massive increase in demand for military boots and related items. Bata seized this opportunity, became
the biggest supplier of shoes to military services, and rose to fame. In the two years after World War, when there was a massive slump
in the market, and there was a prevalent economic depression in a general sense, Bata made another crucial decision of decreasing
costs of production and wage, thereby providing shoes in the market at rock bottom prices.
Today, it still has a massive outreach. It appeals to the masses with an active marketing presence in almost half of the world’s countries
due to its highly effective and adaptable operations model, employee satisfaction and welfare, and image of being the commoner’s
shoemaker. It has impressive sales and profit figures and claims to serve almost one million customers daily across territories. Today, it
is still being managed by the original Bata family. It has headquarters in Switzerland, which handles operations across 27
manufacturing facilities worldwide, with an employee base of almost thirty thousand and more than five thousand retail outlets.
The impressive story of Bata and its everlasting legacy is the outcome of adopting and implementing an intricate marketing strategy,
which became a worldwide phenomenon. It has inspired several other digital marketing models and is valid and widely adopted due to
its practical and logical approach. Discussed below is the marketing mix of Bata across four P’s:
Strategies
PlMarketing Mix of BBATA Product Strategy
Since its very inception, Bata has had a vast product portfolio in terms of its large variety of shoes, sandals, and accessories and the consistency they
promise. Millions who look for no-nonsense products heavily rely upon Bata and the no-frills attached to Bata shoes, which can be obtained at affordable
prices. Owing to its reputation of supplying good quality shoes (and its history of providing shoes to the military in the First World War), people expect the
same durability from Bata. Over the years, Bata has offered well-designed products with a focus on durability and price.
This marketing strategy hit EGYPT, where rural areas are much larger than urban areas, and the rural population looks for cheaper alternatives. Due to its
constant penetrative price and the maintenance of good quality at that price, Bata showed consistent growth and expansion, especially in medium-scale
markets. Bata has also recently partnered with Hush Puppies to offer a premium range of women’s shoes from Hush Puppies, thereby giving a refreshing air to
the brand value. In fact, after price, the product is the most muscular P in Bata’s marketing mix.
Bata offers a diverse range of products catering to various customer needs. The new Product Mix of Bata in 2023 is as follows.
Casual Shoes: Bata offers a wide selection of casual shoes for both men and women. These include sneakers, loafers, and sandals for comfort and everyday
wear.
Formal Shoes: The brand is well-known for its range of proper shoes. This includes leather shoes, dress shoes, and other styles suitable for professional and
formal occasions.
Sports Shoes: Bata has a line of sports and athletic footwear, including running shoes, trainers, and sports sandals, catering to active and fitness-oriented
consumers.
Children’s Shoes: Catering to younger customers, Bata provides a variety of children’s shoes. These are designed for comfort, durability, and style, suitable for
different age groups and activities.
Fashion Footwear: Bata also offers fashion-forward footwear, including trendy designs, seasonal collections, and collaboration pieces with designers or brands.
School Shoes: A significant part of Bata’s product line includes school shoes. These are designed to be durable, comfortable, and conform to uniform
standards for school-going children.
Accessories and Shoe Care Products: Apart from footwear, Bata sells accessories like bags, belts, and socks, as well as shoe care products like polishes and
brushes.
Strategies
[Link] Mix of BBATA ProduSpecialized Footwear: In some markets, Bata offers specialized footwear, such as occupational and safety shoes, catering
to specific workplace requirements.
BATA Pricing Strategy
As discussed above, price is the most muscular P in Bata’s marketing mix because BATA has had a fantastic response from the market due to its affordable
and mass-market pricing. Anyone can purchase Bata products easily. Bata uses psychological pricing as its pricing and social media marketing strategy. Bata
generally prices a product to the nearest lower “9” digit figure of the actual price. For example, any commodity priced at $10 is priced at $9.99 to lure and
attract more customers. Bata started this strategy by pricing its products long back, but it is still being implemented in Bata Showrooms.
Apart from this phenomenon, Bata generally prices its main shoe products moderately and keeps them easily affordable, which is one of the key reasons for
its growth. Of course, the pricing then affects the premium customers.
Bata employs a multifaceted pricing strategy that skillfully lowers prices and balances affordability with brand perception, catering to a diverse consumer
base. Here’s an analysis of their approach:
[Link] Penetration Pricing: Bata adopts a market penetration pricing strategy in many regions, especially emerging markets. By offering quality footwear
at affordable prices, Bata effectively attracts a broad customer base, establishing a solid market presence and brand loyalty.
[Link] Pricing: Bata keenly observes the pricing of competitors in various markets. This competitive pricing ensures that Bata remains an attractive
choice for consumers comparing similar products across different brands.
[Link]-Based Pricing: For its more premium collections, such as designer collaborations or advanced-technology sports shoes, Bata employs value-based
pricing. These products are priced higher, reflecting their unique value proposition regarding style, innovation, and quality.
[Link] Pricing: Bata often uses psychological pricing tactics, pricing products at $49.99 instead of $50. This strategy effectively makes products
appear more affordable and appealing to cost-conscious consumers.
[Link] Pricing Strategy: Recognizing the diverse needs of its global customer base, Bata adopts segmented pricing. This means adjusting prices
based on geographic, demographic, and psychographic factors, ensuring relevance and affordability in different markets.
[Link] and Seasonal Pricing: Bata frequently employs promotional pricing strategies, such as discounts, seasonal sales, and special offers. These
promotions are particularly effective in driving sales, clearing inventory, and attracting price-sensitive customers.
Strategies
[Link] Place Strategy
[Link] placement of Bata and all its subsidiaries has been widely effective because it was done after regular and extensive market research studies.
Maintaining the low cost of the product is possible for Bata only if it has widespread distribution and economies of scale work for the brand. Otherwise,
breakeven would be difficult for Bata if it did not rely on its distribution prowess. Distribution of Bata products has been based on thorough research and
forecasting of market conditions.
[Link] the international markets were first studied for segments, cultures, economic conditions, and overall responsiveness and then entered. It has
strategically placed its manufacturing units across 27 locations, which serve their respective regions swiftly and without hassles, thereby making
expansion highly economical and, at the same time, promoting further expansion. The strength of Bata in India is its rural distribution network. Even in
rural India, showrooms and dealerships of Bata are available, which has helped promote the brand even further.
[Link]’s the Place Strategy of Bata:
[Link] Store Network: Bata operates a vast network of retail stores worldwide, ensuring a solid physical presence in numerous countries. These stores are
strategically located in urban centers, shopping malls, and high-traffic areas to maximize customer accessibility.
[Link] Sales Platforms: Understanding the importance of digital commerce, Bata has embraced e-commerce by selling its products through its own online
store and third-party e-commerce platforms. This approach caters to the growing segment of consumers who prefer shopping online.
[Link] Model: Bata employs a franchise model in some regions, partnering with local entrepreneurs. This strategy helps expand its global footprint
while adapting to local market dynamics and consumer preferences.
[Link] Product Offerings: Bata tailors its product offerings to suit the tastes and needs of local markets. This localization strategy ensures that the
product mix in each store resonates with the regional consumer base.
[Link] and Collaborations: Bata often collaborates with local designers and brands to create unique collections. These partnerships enrich its
product offerings and strengthen its connection with local communities and markets.
Strategies
[Link] Promotion Strategy
[Link] the beginning, Bata has not believed in extensive media or public-related promotion, so much so that one seldom comes across a television
commercial or print advertisement by Bata. It highly relies on its century-long legacy, for which it has all the loyalty of the customer base that it aims to
target. By showing more promotions, Bata would be increasing its cost. This cost will then increase the overall price of the product, which is a negative
point for companies such as Bata, considering that it is targeting the mass market.
[Link], almost an undifferentiated marketing strategy exists for Bata. The only significant promotions it offers are during seasonal sales and discount days,
and the same is automatically communicated within the same market share sphere through word of mouth by customers, which ultimately allows it to
save on promotion campaigns and, in the end, benefits customers only, with low price shoes.
[Link] time to time, the Bata shoe company introduces new products through TV commercials. Still, it relies on its pull strategy and brand equity to bring
more customers to the showroom. Bata was present throughout the country when there was no Adidas or Reebok. Thus, it has fantastic brand equity;
hence, Bata is still a leading shoe brand. However, whether this brand equity stays with the company or withers away due to increased competition is yet
to be seen.
Strategies
Marketing strategies of Bata
Penetration to new & targeted market segments through introduction of shoe lines as per life styles with supportive promotion activities.
Defined number of lines, assortment & quantity for each store according to merchandise classification & store profile in order to increase efficiency in
distribution.
Identification of loopholes in cost structure to increase production efficiency.
Detail analysis of price points of entire shoe line in order to achieve maximum margin.
Detail analysis of departmental work flow & bringing necessary changes for efficiency better coordination with other departments.
Promotion strategies are concerned with the planning, implementation, and control of persuasive communication with customers. Clear-cut objectives and a
sharp focus on target customers are necessary for an effective promotional program.
To improve the sales and profits, BB is planning to increase penetration by setting up more retail outlets and taking space in shopping malls across the
country. Existing retail stores would be upgraded even as wholesale depots would be set up in smaller towns and semi-urban areas. BB’s main efforts will be
to streamline the wholesale business. BB’s thrust is on becoming marketing driven firm from a manufacturing-oriented company.
Bata footwear appears to apply a combination of differentiation and cost leadership strategies according to Porter's Generic Strategies:
Differentiation Strategy: Bata offers a wide variety of shoes, including sandals, sneakers, boots, and dress shoes, catering to different needs and styles. They
also have sub-brands like Hush Puppies and Power that cater to specific customer segments seeking a differentiated brand experience.
Cost Leadership Strategy: Bata is known for its affordable pricing and operational efficiency. This might be achieved through economies of scale in production,
having a strong network of suppliers, or focusing on efficient manufacturing processes.
It's important to note that achieving both cost leadership and differentiation can be challenging. However, Bata seems to strike a balance by offering a range
of products at various price points. Their core footwear offers value for money, while their sub-brands provide a more differentiated experience at a premium
price.
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BATA SHOES
S P O RT B ATA
Thank
you
caring for
your feet