Current Market Scenario………………………………………………………………….4
Objectives and Issues7
The Marketing Plan of Bata India makes a serious effort to rejig its performance. This includes launch of Bata's overseas brands and revamp of retail formats, among others. The plan includes a series of initiatives to bring the customer back into the stores i.e importing high-end brands from Bata's international stable, launching a slew of locally designed footwear, revamping retail structure and a high-decibel ad campaign, plans to bring in weinbrenner, a global Bata brand and wipe n' go, shoes that will need no polishing at all, for the executive literally on the run. And, a part of corrective action will be clearer positioning. Reorganizing retail efforts. Fifty flagship stores to be demarcated in the metros as high-end ones, stocking international brands and imported products. next will be 100 city stores located in metros/semi-metros and about 100 family stores will be chalked out for medium and small towns. and, 190 bazar stores will serve as clearance ones. this exercise will be carried out within existing retail network. Bata will set in motion a 360 degree revamp operation driven by a strategy of focussed marketing and segmentation. it is designed to impact the customer in every income group through both innovative product development as well as fine-tuned distribution, The company will kick off a campaign to launch new designs every week. launching chiara, a bata international best-seller; power international, a high-end imported brand; and tino, a bata international design for men. the therapeutic dr hawai and the handmade stitch top are being designed locally and bubblegummers is an international children's brand.
CURRENT MARKET SCENARIO:
The Indian footwear market is estimated to be over 12,000 Crores in value terms and is growing at the rate of 8.10% over the years. In this Men’s footwear account to be 50%, whereas, women’s share constitutes to be 40% and the remainder are covered by kid’s segment. In this total market demand, about 42% are brand-driven. And bata is covering about 12% of the organized footwear segment. Industry environment-
Threat of new entrants-
•There are many barriers to entry preventing new entrants from capturing significant market share. Large footwear producer enjoy economy of scale that create cost advantage over any new rival. •BIL differentiated it’s product from rivals product like Comfort (using dynamic spring pad that acted as cushion on the feet for women’s footwear), Wind (in build air technology that allowed feet to breath fresh air) etc. •The capital requirements are a high entry barrier to a new firm to the industry. However, an existing shoe manufacturer may enter the athletic shoe industry simply by re-tooling their manufacturing plant. •Switching cost is very low for footwear industry because shoes are relatively inexpensive personal goods that are frequently replaced. •Access to distribution channel is barrier to entry because it is really difficult for a startup firm to get shelf space at major shoe retailer. But existing firm may use their existing connections to easily access shoe distribution channel. Bargaining power of buyer-
•Bata is largest player in industry with 9-10%volume share and 60% market share in organized segment. It had a market share of 70% in canvas shoe segment and 60% in leather shoe segment. Their dominant market share give them power over buyer. •Bata is a big buyer of raw material who buys significant part of suppliers’ revenue. This in a way provides good bargaining power over suppliers. •As a part of its strategic decision Bata set up a rubber/canvas factory in Faridabad, Haryana in 1951. So it can threaten it’s supplier...