Professional Documents
Culture Documents
2. COMPANY PROFILE
3. OBJECTIVE
4. SCOPE
5. IMPORTANT
6. REVIEW OF LITRETU
7. RERESERCH MATHEDOLOGY
8. QUESTIONER
9. ANALYSIS
10. INTERPRITATION
11. FINDINGS
12 CONCLUSSION
13. SUGESSION
14. BIBLIOGRAPHY
INTRODUCTION
The main purpose of this project is to provide an approach for analyzing market
structure in terms of brand loyalty and brand awareness for the purchase of Bata
products. Ideally, your brand should be the first one that comes to your mind
within specific product categories and associated with key consumer benefits.
Consumers should be able to identify which products and services Bata brand
offers. They should also be able to identify which benefits are associated with the
brand. It is also useful to segment the market, based on brand loyalty and brand
awareness and to understand the needs of loyal customers and potential
awareness, as well as their attitude towards key brand attributes. The goal of this
project is to create awareness among the consumers that there are different
brands in the product categories in which the brand operates, and also to measure
the consumer's behavior of repeatedly purchasing a specific brand over a certain
period of time. It is also useful to segment the market, based on brand loyalty and
brand awareness and to understand the needs of loyal customers and potential
awareness, as well as their attitude towards key brand attributes. A person's
attitude toward a brand is relevant to the degree of their brand loyalty. Brand
awareness is linked to consumers brand preferences, that salient brands are high
in both intentions to buy the brand and brand loyalty. It is a well known fact that a
distinctive brand identity is one of the most influential factors in determining how
consumers differentiate between similar products and services. Both tools are
separate in practice, but also used in combination with each other. It is the also
the key to attracting new customers and retaining existing customers. The intent
of this study is to provide insights of the needs of two groups of customers, repeat
buyers and operations of the brand, in order to help corporations develop
appropriate marketing strategies. This study was carried out in two stages: (1)
segmenting the market into the two consumer groups; and (2) analyzing the
differences of the two groups based on the key factors that affect consumption
behaviors.
1.2 OBJECTIVES OF THE STUDY:
Primary objectives-
To measure the Brand awareness and Brand loyalty of Bata India Limited,
Bangalore.
Secondary objectives -
To find out the company’s position in the footwear industry in the market.
To find how much Bata brands are aware in the market among the
consumers.
To find out the loyal customers of Bata.
To determine the factors which is affecting Bata’s promotional activities?
To find out drawbacks of Bata brand.
1.3 IMPORTANCE AND RELEVANCE OF THE PROJECT:
The two month project Training is very important for a student of MBA. This
type of study gives some practical knowledge to MBA students and practical
knowledge is more useful than theoretical knowledge for any one.
There is no certain formula for any particular problem but the aim of this
study is to develop the ability of decision – making. A right decision at the right
time itself helps an organization to run smoothly.
The training in any organization gives us an idea of different marketing
activities and many emphases is given on “Promotional Activities Aspect” and
also it is seen how business is taken tactfully when any problem comes to an
executive. The way of problem solving, right decision making and knowledge of
different types of marketing activities gives much importance to this study. Though
only in 2 months, it was not possible to understand it so deeply but overall ideas
would be developed.
The survey was conducted to Measure the Brand Awareness and Brand
Loyalty of Bata India Limited, Bangalore.
This study is done to find out how much Bata brand is aware in the market and
also to find loyal customers of Bata. Bata operates in many different economic and
cultural environments around the world, dictating very different types of
operations. Although Bata does not sell the same shoes nor does it have identical
stores in each country, customers will recognize common elements to the Bata
experience everywhere in the world.
The survey covers a wide range of activities and factors, which influence the many
customers to express their feelings about Bata brand. The samples of 60
respondents were taken to represent Bata brand, and the result was not in the
favor of Bata.
1.4 SCOPE OF THE STUDY:
Ideally, your brand should be the first one that comes to the minds within specific
product categories and associated with key consumer benefits. Consumers should
be able to identify which products and services Bata brand offers. They should also
be able to identify which benefits are associated with the Bata brand.
The intent of this study is to provide insights of the needs of two groups of
customers, repeat buyers and operations of the brand, in order to help
corporations develop appropriate marketing strategies.
(1) Segmenting the market into the two consumer groups; and
(2) Analyzing the differences of the two groups based on the key factors that affect
consumption behaviors.
The result of this study will help the Bata Company to rectify their mistakes and to
come out with new plan and promotional activity which helps them to create a
good position in footwear industry again.
1.5 LIMITATIONS OF THE STUDY:
Although all efforts have been made to study all types of population as
compared to the topic of study, universe size and sample size, findings of the study
will be considered and will be applied in Bangalore, only because perception of
the customers varies in other place due to socio-economic and educational
background. At last but not the least the study will try to find out real depth of the
actual position of the brand.
A project is a work that an executive or the personnel does by their efforts in
research. There are many advantages that we can easily find and recommend in
the company but like all projects this project also have some limitations, such as:-
Personal interview: - It consists of few questions and answer session, so
most of the people avoid it and that’s why we get little wrong response in the
questionnaire.
Field survey:- This method is also a key factor, but generally to that place
where it has been done, because the result varies when we change the area.
Questionnaire: - Because of the busy schedule and fast life of the
respondents, most of them do not give that is needed, so that affects the result as
well as analysis.
Secondary sources:- Such as company data makes in favor of the company,
so problem occurs.
Personal visit to the other footwear stores:- This is also a good technique,
but most of them don’t discloses their sale unit and turn over because of the
privacy.
It is very difficult to influence and get right answer from old mentality
customers. Therefore the result is applicable to Bangalore region only. These
findings may not have much relevance in other regions of different from rest of the
country.
All the conclusions suggestions & recommendations will be made in the feedback
obtained from the survey on the basis of responses given by the respondents.
2.1 INDUSTRY INTRODUCTION:
Indian leather industry is the core strength of the Indian footwear industry. It is the
engine of growth for the entire Indian leather industry and India is the second
largest global producer of footwear after China.
Reputed global brands like Florsheim, Nunn Bush, Stacy Adams, Gabor, Clarks,
Nike, Reebok, Ecco, Deichmann, Elefanten, St Michaels, Hasley, Salamander and
Colehaan are manufactured under license in India. Besides, many global retail
chains seeking quality products at competitive prices are actively sourcing
footwear from India.
While leather shoes and uppers are produced in medium to large-scale units, the
sandals and chappals are produced in the household and cottage sector. The
industry is poised for adopting the modern and state-of-the-art technology to suit
the exacting international requirements and standards. India produces more of
gent’s footwear while the world’s major production is in ladies footwear. In the
case of chapels and sandals, use of non-leather material is prevalent in the
domestic market.
Leather footwear exported from India are dress shoes, casuals, moccasins, sport
shoes, horrachies, sandals, ballerinas, boots. Non-leather footwear exported from
India is Shoes, Sandals and Chappals made of rubber, plastic, P.V.C. and other
materials. With changing lifestyles and increasing affluence, domestic demand for
footwear is projected to grow at a faster rate than has been seen. There are
already many new domestic brands of footwear and many foreign brands such as
Nike, Adidas, Puma, Reebok, Florsheim, Rockport, etc. have also been able to
enter the market.
The footwear sector has matured from the level of manual footwear manufacturing
methods to automated footwear manufacturing systems. Many units are equipped
with In-house Design Studios incorporating state-of-the-art CAD systems having
3D Shoe Design packages that are intuitive and easy to use. Many Indian footwear
factories have also acquired the ISO 9000, ISO 14000 as well as the SA 8000
certifications. Excellent facilities for Physical and Chemical testing exist with the
laboratories having tie-ups with leading international agencies like SATRA, UK
and PFI, Germany.
One of the major factors for success in niche international fashion markets is the
ability to cater them with the latest designs, and in accordance with the latest
trends. India, has gained international prominence in the area of Colours &
Leather Texture forecasting through its outstanding success in MODEUROP.
Design and Retail information is regularly made available to footwear
manufacturers to help them suitably address the season's requirement. The Indian
Footwear Industry is gearing up to leverage its strengths towards maximizing
benefits.
Strength of India in the footwear sector originates from its command on reliable
supply of resources in the form of raw hides and skins, quality finished leather,
large installed capacities for production of finished leather & footwear, large
human capital with expertise and technology base, skilled manpower and
relatively low cost labor, proven strength to produce footwear for global brand
leaders and acquired technology competence, particularly for mid and high priced
footwear segments. Resource strength of India in the form of materials and skilled
manpower is a comparative advantage for the country.
2.2 HISTORY OF BATA:
2008-The Bata emerging markets unit was created in order to maximize the
synergies of all operations in Latin America, Africa, Asia and India
.
2009-The European shoe innovation centre (SICE) in Padova, Italy
launched this year. As well as conducting research into new innovations,
materials and design for our shoe technologies, SICE design and sources
top quality products from the best worldwide suppliers for all our European
stores.
2.3 COMPANY PROFILE:
The company that evolved into BATA SHOE ORGANIZATION was first registered
in the town of Zelin, Czheclovakia on August 24th 1894. It was found by THOMAS
BATA who was the grandfather of present president T.G.BATA.
Although the Bata name had been a part of that tradition for 8 generations,
spanning three hundred years Thomas Antonius and Anna Bata wanted to improve
conditions for themselves and for shoemakers of the future. The credo “Our
Customer Our Master” served as the guiding principle for Bata Shoemaker and
employers.
The young company overcomes many difficulties. In order to meet growing
demands during the early years, new production machinery was found in other
countries and innovative shoe making techniques were devised skilful and
successful Bata employees. Bata’s reputation as innovative industry leader has
been maintained ever since. In every 1920’s Bata established new companies in
Poland, Denmark, Yugoslavia, Holland, UK and USA.
Bata is one of the world’s widest reaching companies, with operations in 68
different countries. Bata companies strive to listen to the customers in their local
markets and clearly identify their footwear needs, and then to provide products
that exceed their customers’ expectations in terms of quality, style and value. Bata
operating companies are grouped into four business units based on similarities in
markets and business issues. Each group benefits from synergies specific to their
requirements, such as product development, sourcing and marketing support.
Each business unit is entrepreneurial in nature, and can quickly adapt to changes
in the marketplace and seize potential growth opportunities.
2.3.1 OVERVIEW-
Serves one million customers per day.
Among the three choices Bata has chosen and uses ‘Total-Market strategy’s they
serve all classes of people with their shoes ranging from 30/--2195/-. The specifics
of the strategy is provided below-
Definition: Serving the overall market with one or some other kind of
offerings.
Objective: To diversify the risk of serving only one market.
Requirements:
1. Higher Sales.
1. Local-Market Strategy
Requirements:
2. Capital Resources.
1. Increased growth.
Among the Market-Entry choices, Bata Bangladesh uses ‘First-In strategy’ which
is characterized by the following:
Definition: Entering market during the introduction stage. Two modes of entry are
feasible:
Objectives: To understand the market first and reap the profit at the
beginning and waiting for the competitors and strike them with good
lowering price and improved quality. At the same time it offers variety of
products.
Requirements:
1. Market research ability.
2. Production capability.
Expected results:
2. Increased profits.
1. Product-Positioning Strategy
3. Product-Overlap Strategy
4. Product-Scope Strategy
5. Product-Design Strategy
6. Product-Elimination Strategy
7. New-Product Strategy
8. Diversification Strategy
Among the product strategies Bata has used 'Product-Positioning Strategy' and
'Diversification Strategy' which is characterized by the following:
Product-Positioning Strategy:
Definition: Placing a brand in that part of the market where it will have a
favorable reception compared with competing brands.
Objectives:
To position the product so that it tells customers what you stand for, what you are,
how you would like customers to evaluate you.
Requirements:
Expected Results:
Security when the company may fear backward integration from its major
customers, and
Expected results:
Increase in sales.
Greater profitability and flexibility.
Pricing Strategy choices For new products:
(1)Skimming Pricing
(2)Penetration Pricing
At times Bata Shoe Company used 'Penetration Strategy' which is characterized by
the following:
Definition: Setting a relatively low price during the initial stages of a
products life.
Requirements:
Products must appeal to a market large enough to support the cost advantages.
Demand must be highly elastic in order for firm to guard its cost advantage.
Expected Results:
CALL CENTER
IMAGE
OVERALL
SERVICE
QUALITY
VALUE
FOR
MONEY
OVERALL LOYALTY
COMPANY
RATING
3.1.1 IMPORTANCE OF BRAND LOYALTY-
There are three main reasons why brand loyalty is important:
Higher Sales Volume – The average United States Company loses half of its
customers every five years, equating to a 13% annual loss of customers. This
statistic illustrates the challenges companies face when trying to grow in
competitive environments. Achieving even 1% annual growth requires
increasing sales to customers, both existing and new, by 14%. Reducing
customer loss can dramatically improve business growth and brand loyalty,
which leads to consistent and even greater sales since the same brand is
purchased repeatedly.
Retain Rather than Seek – Brand loyalists are willing to search for their
favorite brand and are less sensitive to competitive promotions. The result is
lower costs for advertising, marketing and distribution. Specifically, it costs
four to six times as much to attract a new customer as it does to retain an
old one.
3.1.2 CREATING BRAND LOYALTY –
Favorable brand attitudes are the determinants of brand loyalty consumers must
like the product in order to develop loyalty to it. In order to convert occasional
purchasers into brand loyalists, habits must be reinforced. Consumers must be
reminded of the value of their purchase and encouraged to continue purchasing
the product in the future. To encourage repeat purchases, advertisement before
and after the sale is critical. In addition to creating awareness and promoting
initial purchases, advertising shapes and reinforces consumer attitudes so these
attitudes mature into beliefs, which need to be reinforced until they develop into
loyalty. For example, the most avid readers of a travel ad are those who just
returned from the destination. Ads reinforce a traveler’s perception and behavior.
Remember, it is easier to reinforce behaviors than to change them and the sale is
just the beginning of an opportunity to turn the purchaser into a loyalist.
A few more points to keep in mind…
Stand behind your product – if customers don’t trust the product, they
won’t purchase it again.
Know your trophy customers and treat them best of all – remember the rule
that 80% of sales will come from the top 20% of customers.
Make it easier to buy your brand than competing brands – availability and
simplicity are keys in today’s high-speed world. Customers appreciate
convenience more than ever.
Building brand equity- The sum of the intangible assets of a brand. Factors
that contribute to this are: name awareness, perceived quality, brand
loyalty, the associations consumers have towards the brand, trademarks,
packaging, and marketing channel presence.
The research design states that the conceptual structure within which the study
should be conducted is descriptive in nature. The researcher used descriptive study
to describe the awareness of Bata among the consumers in market and to find loyal
customers of Bata and also to find out its demand, efficiency, brand image and its
features.
Sampling Unit- The sampling unit selected as respondents who are the
customers in the market buy footwear of Bata brand from different stores of
Bangalore
These measures help the Consumers rely only a few piece of information
with which they feel confident to help them decide how the brand might
perform.
It is a well known fact that a distinctive brand identity is one of the most
influential factors in determining how consumers differentiate between
similar products and services.
4.4 DATA COLLECTION:
The data collected are primary data among the various customers to find out
the level of awareness and loyalty of Bata among different footwear, and its
demand based on prescription and its features in various angles.
1. Are you familiar about brand BATA how many times you purchase it?
2. Which footwear brand first comes to your mind when you think of India?
Khadims
Liberty
Bata
Shree Leathers
Elite
Action School time
Woodlands
Reebok
Nike
Adidas
Others
None of the above?
No specific brand?
4. Which brand do you think is the most popular footwear brand in India?
Liberty
Bata
Khadims
Shree Leathers
Elite
Woodlands
Reebok
Nike
Adidas
Agree
Disagree
I am not aware
6. Do you consider Bata to be a one stop family store?
Yes
No
7. Which brand do you recall by “School Shoes”?
Khadims
Liberty
Bata
Shree Leathers
Elite
8. Which of the above mentioned brand is, or has been your most preferable
brand of school shoes?
9. How many members in your family use BATA footwear?
None
Just Myself
Many
BRANDS RANK
BATA
KHADIM’S
ELITE
SREE LEATHERS
LIBERTY
WOODLANDS
ADIDAS
REEBOK
NIKE
IEN
JOURNAL AND MAGAZINES-
HE ECONOMICS TIMES
COMPANY JOURNALS
THE HINDU
WEBSITES-
www.bataindia.com
www.google.co.in
www.hindubusinessline.com
www.wikipedia.org