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INTRODUCTION
Medium Quality Medium Price Products Caters to lower and middle income market Also competing in the upper middle class The MD is considering the efforts to realign Bata's Manufacturing, outsourcing, distribution and brand strategy in the light of increased competition and Chinese imports.
Ratios
NP margin, ROA, ROE Increased Current ratio decreased but remained above 1 Current Ratio Decreasing Means, liabilities Increasing- Increasing Trade Debt
FootWear Export
10000 9000 8000 7000 $$ Millions 6000 5000 4000 3000 2000 1000 0 World Pak China 1996 43611 51 6859 1997 44228 48 8186 1998 41187 39 8155 1999 39735 38 8464
ISSUE
Increased competition & Chinese Imports
Low product life cycle Whether to outsource or in-house a particular product line
CORE ISSUE
How to re-position themselves in the minds of consumer given that they have entered the women fashion footwear segment and the premium segment?
DECISION CRITERIA
Absolute good quality Increase market share strong distribution channels Cater to middle to upper class markets Reduce the ABUs
PROPOSED STRATEGY
Bata should exit from the lower end segment and focus more on the middle and upper middle class of the society
growth in numbers of people belonging to these segments people are becoming quality conscious
POSSIBLE SOLUTION
Use a Mix of strategy which includes the following:
Respond to competition from Chinese imported shoes and other local shoes By building a strong relationship with customers Focus on quality Enhance brand equity and brand loyalty Make use of the lower quality being offered by Chinese products
1.
2) Brands: Batas traditional product offerings- known for its functional footwear offering utility and reliability etc
Not in a position to challenge the supremacy of local, more responsive and trendy stores famous for women footwear Brands like Slazenger and Hush Puppies which have their own stores