BRAND AUDIT REPORT

October 31

2011By

SANAM SAYED SAMREEN KHAN

SAMIR GADAGKAR

Overview

Bata is one of the world's leading footwear retailers and manufacturers with operations across 5 continents managed by 4 regional commercial business units (CBUs). The MBU approach provides quality resources and support in key areas to the companies operating in similar markets such as product development, sourcing or marketing support. Each MBU is entrepreneurial in nature, and can quickly adapt to changes in the market place and seize potential growth opportunities Bata's strength lies in its worldwide presence. While local companies are self-governing, each one benefits from its link to the international organization for back-office systems, product innovations and sourcing Although Bata operates in a wide variety of markets, climates and buying power Bata companies share the same leadership points. Two important ones are product concept development and constant improvement of business processes in order to offer customers great value and the best possible service.

History

Bata Shoes is a large, family owned shoe company based in Bermuda but currently headquartered in Lausanne, Switzerland, operating 3 business units worldwide. It has a retail presence in over 50 countries and production facilities in 26 countries. A large order from the army, military shoes and rising demand for them, during World War I started rapid growth and small manufacture turned into modern industrial concern, one of the first mass producers of shoes.

The phrase "work collectively, live individually" is one of his sayings. Bata recognized the potential of large-scale production, and was often called the "Henry Ford of Eastern Europe". He saw technology as a means of progress, and wanted to make the shoes as cheaply as possible so that the greatest number of people could access them.

Bata's product range offers style, elegance, and durability but at the same time it is affordable for millions of Indians. Affordability and dependability are the two most important elements of the brand Bata.

Indian Shoe Industry:

Indian shoe market is one of the most dynamic markets in the world. Although there are different valuations about the Indian Shoe Market. It is estimated to be worth around Rs 11000 crores.

Our Company: Bata

Old Positioning Statement: “One Bata One World”

New Positioning Statement: “Hard to Resist”

Competitors of Bata

Liberty Relaxo footwear Reebok Adidas Woodland

Liberty

Positioning Statement: “Foot Fashion”

Indian Shoe Company based in Karnal, Haryana. Established in 1954, today the company through its six manufacturing units collectively produces, 50,000 pairs of footwear a day, sold through 6,000 multi-brand outlets and 350 exclusive showrooms, and has a presence in 25 countries, with 50 showrooms outside India.

Brands of Liberty

FOR MEN: Coolers, Fortune, Force 10, Gliders and Windsor FOR WOMEN: Force 10, Gliders, Senorita and Tiptopp FOR KIDS: Footfun, Force 10, Gliders, Prefect SAFETY SHOES: Freedom, Warrior and Workman

Share price :

Market share of Liberty is 4.7%

Relaxo Footwear

Positioning statement: “Quality Par Excellence”

Relaxo Footwear commenced its journey with the manufacture of Hawaii slippers. It has now grown into a large-scale entrepreneurship catering to the basic needs of the quintessential Indian citizen. From a modest sale figure of Rs. 1 million in 1977 to more than Rs. 5000 million last year; the company has experienced a record-breaking growth since inception. Today, the company manufactures over 3 lakh pairs of footwear per day, which approximately adds up to over 10 million pairs per year. Each pair is given thorough attention by the dedicated and skilled employees working at the 10 state-of-the-art manufacturing units in Northern India. Thus, it is no small wonder that the annual turnover has multiplied 2.4 times in the last 3 years from Rs. 305 crore in 2007-08 to a whopping Rs. 550 crore in 2009-10.

With over 30 years of experience and 100 million satisfied customers, Relaxo keenly looks forward to achieving an estimated annual turnover of Rs. 1000 crore by the year 2012.

Brands of Relaxo footwear ltd.

Flite Sparx Hawaii Schoolmate

Market share of Relaxo footwear is 2.7%

Woodland

The definition of quality demands that any footwear and garment we make should be long-lasting and strong. Is as light as possible, supple, feel dry and comfortable against the skin, and be easy to care for. Is versatile and should perfectly fit an active man, woman or kid. Environmental harm from manufacturing or growing practices or from dyes and finishes should be minimal .Go to great lengths to design products that embody these qualities. Our planet is our home. As the effects of global warming, increased pollution levels and fast diminishing natural resources become more profound, Woodland is watching with great alarm as we are heading towards an uncertain tomorrow. It is this rampant destruction of their beloved home that has strengthened our resolve to save Earth in whatever ways possible. This resolve is reflected in their definition of quality which includes a mandan the beginning they followed this mandate by making boots using renewable materials which were later bound by water-based adhesives. Soon enough, it graduated to running its manufacturing facilities with solar and wind energy. Today, this dedication to make the world a cleaner place can be seen on a wider scale. Woodland packaging utilizes 100% recyclable material. Additionally, pollution prevention by minimizing waste and emissions from operations is what it is trying to implement for making products and working with processes that cause the least harm to the environment. It evaluates raw materials, invests in green technologies, and rigorously manages its wastes to protect nature. Woodland created a category for itself. Woodland never wanted to be an ordinary shoe so till now this brand is concentrating on the premium end (above Rs 1500 shoes) of 2000crore casual shoe segment as on 2008-09. Under the brand name Woodland the various products are: Products: Boots Shoes, Performance, Custom, Sandals

Adidas

Adidas AG is a German sports apparel manufacturer and parent company of the Adidas Group, which consists of the Reebok sportswear company, golf company (including Ashworth), and Rockport. Besides sports footwear, the company also produces other products such as bags, shirts, watches, eyewear, and other sports- and clothing-related goods .This Company is the largest sportswear manufacturer in Europe and the second-biggest sportswear manufacturer in the world.

Adidas was founded in 1948 by Adolf "Adi" Dassler, following the split of Gebrüder Dassler Schuhfabrik between him and his older brother Rudolf. Rudolf later established Puma, which was the early rival of Adidas. Registered in 1949, Adidas is currently based in Herzogenaurach, Germany, along with Puma.

The company's clothing and shoe designs typically feature three parallel bars, and the same motif is incorporated into Adidas's current official logo.

Its product range includes:

Footwear Sportswear Sports equipment’s Toiletries

Market share of the footwear industry

Marketing mix

Product

With more than eight renowned brands, which include hush puppies, Marie Claire, Bubble gummers, Power to a wide range of choices all over the country. Hush puppies are one of the world's most comfortable shoes designed for both men and women. Marie Claire is for today's fashion conscious women who love shoes, which match their colorful and vibrant wardrobe. That’s not all. For those who want a tough shoe that can weather any storm, we have Sandak to suit their needs. Weinbrenner is simply meant to take you outdoors. With them on you can be rest assured about their rugged character and durability. Kids can take their pick from bubble gummers. Power is all about athleticism, for those who love sports and enjoy sporting activities PRICE Bata prepare one sheet on which all the competitors’ products, brands, category and prices as well as Bata’s products, brands, category and prices are listed. With the help of this format Bata find out the new product or new category in new price range which is missing in Bata and competitors offers to their customers

Place Bata is situated all over the country. Its stores are placed right in the heart of every city and which is easily accessible to the customer. The layout of these stores is as per Bata international standards and is designed to offer the most effective display and provide the maximum convenience to the customers, so as to make the shopping experience a unique one.

Promotion

In the early 1990s, for instance, Bata came up with a winning promotion titled Super hit Price Range', aggressively pushing its affordability. 'Back to school' has been another successful Bata campaign. Some of the most famous public icons and personalities have associated with Bata. The brand has built an enviable reputation for spotting charismatic talent in its promotions. In recent years, some of the most glamorous Indian women such as Ravina Tandon, Rani Mukerji, Bipasha Basu, Celina Jaitley have chosen to endorse the Bata brand at the very beginning of their careers as dream sellers in advertising and cinema. Through their endorsements, Bata is seen to be respected, trendy, cosmopolitan, modern, stylish, admirable and innovative. Celebrity cricketers - among them Kapil Dev and Ravi Shastri - promoted the Power brand, highlighting the brand's association with power, aggression and performance.

Bata Shoe Company Ltd launched a new promotional campaign — Chomkano Offer — in 2010- this offer gives the customers an opportunity to enjoy 30 per cent discount on the second pair of shoes if anyone buys two pairs of shoes at a time. It is now also providing gift vouchers to the customers.

Integrated marketing communication channels OLD ADVERTISEMENTS OF BATA

• The complete name in fashion shoes...Bata Walk master.. • All bluntly modern within easy reach Now Bata comes on strong with a

bold blunt shoe collection that's really trendy. • Styled cut to fit the 'today' image Both casual and formal.. Some quite

trendy but straight. • Readymade and priced within such easy reach. That slowly anyone can

build up a collection of the trendiest footwear around. • Mounted on Unique PVC crystalline soles. Skid-proof. Lighter.

Flexible.100% waterproof.

Advertisement strategies

Marketing Strategies

• Reinventing itself as an international retailer and offering customers the best in footwear in terms of fashion, quality and price.

• Introduced the concept of flagship stores to provide complete and unique shopping experience at par with their stores abroad.

• International trends, relaxed ambience, great products, and courteous staff at the new-look Flagship store are all a part of Bata’s new marketing strategy.

• Bata’s brand new collection of highly fashionable international range of ladies footwear under the Marie Claire brand is one of the major attractions at this flagship store .

• The store also showcase top-of-the-line brands including the latest international collection from Weinbrenner, Hush Puppies, Bubble Gummer, Dr Scholls and Bata Tech shoes.

• Brands like Nike, Reebok and Adidas will also be available. • The store also additionally offers trendy accessories like caps, T-shirts

and other lifestyle products - making it a complete one-stop shopping experience for its customers.

`95 paise' price tags

• The famous 95 paise pricing (such as Rs 299.95). • But now the 95 paise strategy has been withdrawn . • Bata India officials said the company had decided to do away with the

most distinctive pricing in the country because the five paise coins have now gone out of circulation.

• Returning the five paise to customers was becoming an issue. • Bata prices still stop at `9' (such as Rs 499) . •

Brand hierarchy

Survey Analysis

The survey has a sample size of 100.

Method of survey was done by online filling of questionnaire & sampling taken for convenience.

1)

The total numbers of respondents were male 62 & female 38.

2)

The majorities of respondents were 18-30 years & were around 82.

3)

The respondents replied it as occasional 43; seasonal 26; yearly 19 & remaining monthly.

The buying pattern of respondents is they buy at special occasions & seasonal.

4)

The preference for buying footwear is highest at exclusive brand outlets, followed by at malls, retail shops & at sports stores. A few of them also prefer buying from company websites.

5)

The respondents last 3 times primarily bought 60% planning & remaining 40% impulse.

6)

The last 3 purchases were in the price range of Rs 1000 to Rs 3000 featuring premium brands like reebok, adidas, mochi, bata (premium).

7)

The footwear preferences are casual, formal, sports wears, sandals & slippers; in the order of decreasing preferences.

8)

Purchase attribute preferences in order of liking is Comfort, Quality, stylish, Durability, Price.

9)

Knowledge level about products sold by bata in order of awareness are footwear, shoe polish, socks, shoe cleaner, bags & purses.

10)

Personality traits that people associate with bata are; family oriented, traditional, honest & sincere, down to earth, stylish, rugged & tough.

11)

People’s Brand perception bata are; original, friendly, sentimental, contemporary, and trendy & cool, good looking, confident, successful.

12)

Recommendation to bata is primarily occasionally, most of times & rarely and few times always.

13)

Most respondents expressed Bata to be Fair Valued Product (60) & 28 people thought it as a premium product, contrary to popular perception as a low priced brand.

Bata Brand Audit Models

Brand Associations:

According to survey, people associate bata as generic Brand, Friendly, Comfortable & can be worn at all occasions by common man, High quality value for money (fair value) & it is stylish. Its competition is Liberty & relaxo.

Bull’s Eye:

Core Values : Generic Brand, Low Cost, Durable Footwear. How it does & what it is: Variety in designs, family store, 99! Price Tag for all generations. What people feel wearing Bata: Original, friendly, Trendy & cool, Good looking, Confident, Successful What people wearing bata are perceived as : Stylish, Honest & sincere, Down to Earth, Traditional.

Consumer Based Brand Equity:

Salience: Footwear, shoe Polish, Purse, Socks, Shoe cleaner, Bags, Belts.

Performance: Durability, fair Value, Stylish.

Judgmental: Quality & Comfort.

Imagery: Family Oriented, Original.

Feelings: Trendy & cool, Traditional.

Resonance: Childhood Brand.

Kapferer’s brand Identity Prism:

Sender’s View:

Physique: 99! Price Tag

Bata Brand Logo

Personality: Confident, Reliable and Durable

Internal: Culture: Family Oriented

External: Relationship: Childhood brand, Traditional, Family oriented.

Picture of Recipient:

Reflection: Trendy & cool, Original

Self-Image: Generic brand, common Man.

Brand Elements:

Some of the brand Elements of Bata,

Hard to Resist – Tag Line

BATA – Logo

99! – pricing Strategy

www.bata.in – URL

Brand Asset Valuator:

Differentiation: High Quality, Comfort, Durable.

Relevance: Family Oriented, Original, fair Value, Stylish

Esteem: Quality, Comfort, trendy & Cool, Traditional.

Knowledge: Childhood Brand

CBBE & BAV, provide a compressive evaluation of Brand.

It is observed that Bata is very strong at first two levels.

Next two levels, it having resistance with respect to brand image that they have established.

Suggestions

Advertisements

Brand Perception – to stylish, designer.

They as a brand have to change the perception of Bata being an old fashioned, and a child hood brand to a designer and stylish brand.

Sport Wear.

They need to concentrate more on their sportswear.

Customer Service

Aggressive ATL activities

They have to do aggressive ATL activities so as to change the perception of Bata to be as and old fashioned and a Brand for our parents’ generation coming with Bata is continuously coming with new and improved designs in all their segments.

Brand Elements

They have to focus more on the brand elements such as, having a brand ambassador, having a brand character, they just have a simple logo. They also need to focus on having a jingle or slogan; all of this can be achieved only with having an aggressive marketing of the brand.

They also have to focus on packaging.