Bata History of the Company

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Blaise Pascal university

1 International business with French

[pic]

International marketing

1 Bata shoes company

Author: Mark Lactaotao Michaela Pastrňková

Vichy 2013

Contents

➢ Introduction
➢ Company history
➢ Product/service range
➢ Price policy
➢ Place
➢ Promotion
➢ Key factors of success
➢ Innovation aspects, future development

➢ Conclusion

Introduction

1. Company history

„Our success is built on our legacy of values and beliefs "

Thomas G. Bata, (Chairman and Grandson of Founder)[1]

Bata is a worldwide well known brand, being one of the most successfully franchising multi-site stores in the world which was founded in a small town Zlín in today Czech republic in 1894 by Tomáš Baťa who made an emphasis on modern methods of manufacture and top management. Today he is always considered to be an innovator whose revolutionary methods are still inspirating.[2]

1 1.1 Bata company 1894-1932

The founder of the company was born as the sixth of twelve children on 3rd April in 1876 in Moravia, then a province of the Austro-Hungarian empire, now in the Czech republic. He established a shoemaking company in 1894 together with his half-brother Jan and his sister Anna. And although this business was completely new, the Baťa name had been part of a tradition of shoemaking for eight generations, spanning three hundred years. But after one year had elapsed, the company found itself on the edge of bankruptcy. Since leather shoes were expensive and only a few people could afford them. But Tomáš Baťa was extremely ambitious and hard-working. During two years he succeeded in reversing the situation. The turning point for the company came in 1897 when Baťa introduced a new type of shoe for working class onto the market, the so-called Baťovka, in which expensive leather was replaced with inexpensive cloth. Thanks to the low price nearly everyone was able to afford these shoes. For the first time in history it was even worth it for people to buy new shoes rather than have their old ones repaired by a shoemaker. Thanks to huge volume of production, He had paid off his debts by 1900 and establishing his first modern factory in Zlín with 50 employees. The name of Tomáš Baťa quickly became synonymous with quality and value which helped him to won an order for 50,000 pairs of shoes for the army during the World War I. Unable to handle the full production himself, he set up a co-operative arrangement with other shoemakers in Zlín to ensure that the order was filled on time. By the end of the war, the Bata company was employing 5,000 people and its export was still growing which was caused by his innovative methods. He tried to motive his employees financialy by extra money or profit sharing and also socially. He built built medical, educational and social facilities for his employees. So that as the company prospered, so did the communities where it operated.

In order to promote his brand he created an independent advertising and marketing division which was separated from his sales department. He published promotional catalogues, company newspapers, he introduced a modern company logo. Other key reforms also included Baťa prices ending in a nine, discounts setting up from 20% to 50% and sales and finally he also created popularly used company slogans – for instance “Our customer, our master”[3]. Bata was at the helm of the biggest, most sophisticated shoe company...
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