CHAPTER - 1 INTRODUCTION

OVERVIEW OF INDIAN FOOTWEAR INDUSTRY

The Footwear Industry is a significant segment of the Leather Industry in India. India ranks second among the footwear producing countries next to China. The industry is labour intensive and is concentrated in the small and cottage industry sectors. While leather shoes and uppers are concentrated in large scale units, the sandals and Chappals are produced in the household and cottage sector. India produces more of gents footwear while the worlds major production is in ladies footwear. In the case of Chappals and sandals, use of non-leather material is prevalent in the domestic market.The major production centers India are Chennai, Ranipet, Ambur in Tamil Nadu, , Mumbai in Maharashtra, Kanpur in U.P. , Jalandhar in Punjab, Agra and Delhi.The estimated annual footwear production capacity in 1999 is nearly 1736 million pairs (776 million pairs of leather footwear and 960 million pairs of non-leather footwear).

Shoes manufactured in India wear brand names like Florsheim, Gabor, Clarks, Salamander and St. Micheals. As part of its effort to play a lead role in the global trade, the Indian leather industry is focusing on key deliverables of innovative design, consistently superior quality and unfailing delivery schedules.India in itself has a huge domestic market, which is largely untapped.The Indian footwear industry is provided with institutional infrastructure support through premier institutions like Central Leather Research Institute, Chennai, Footwear Design & Development Institute, Noida, National Institute of Fashion Technology, New Delhi, etc in the areas of technological development, design and product development and human resource development.The availability of abundant raw material base, large domestic market and the opportunity to cater to world markets makes India an attractive destination for technology and investments.Production capacity of Shoe IndustryThe leather industry is spread in different segments, namely, tanning & finishing, footwear & footwear components, leather garments, leather goods including saddlery & harness, etc.The estimated production capacity in different segments is as under Hides:64 million pieces Skins:166 million pieces

Footwear & Footwear Components Shoes:100 million pairs Leather shoe uppers:78 million pairs Non-leather shoes/chappals etc:125 million pairs Leather Garments:6 million pieces Leather Products:70 million pieces Industrial Gloves:40 million pairs Saddlery:6000 piecesThe major production centers for leather and leather products are located at Chennai, Ambur, Ranipet, Vaniyambadi, Trichi, Dindigul in Tamil Nadu, Calcutta in West Bengal, Kanpur in Uttar Pradesh, Jalandhar in Punjab, Bangalore in Karnataka, Delhi and Hyderabad in Andhra Pradesh.

Raw material supplies:There exists a large raw material base. This is on account of population of 194 million cattle, 70 million buffaloes, 95 million goats. According to the latest census, India ranks first among the major livestock holding countries in the world. In respect of sheep with 48 million sheeps, it claims the sixth position. These four species provide the basic raw material for the leather industry.

The annual availability of 166 million pieces of hides and skins is the main strength of the industry. This is expected to go up to 218 million pieces by the end of year 2000. Some of the goat/calf/sheep skins available in India are regarded as specialty products commanding a good market. Abundance of traditional skills in training, finishing and manufacturing downstream products and relatively low wage rates are the two other factors of comparative advantage for India. http://leather.indiabizclub.com/info/indian_leather_industry_overviewExport and Import overviewIndia's export of Leather & Leather Products has reached US $ 3.47 billion in dollar terms and Rs.14,000 crore in rupee terms. In dollar terms, there has been an export growth of 13.67% and in rupee termsl.13%Footwear alone holds a major share of 42.44% in India's total leather products export trade. As against the export target of US $ 3042 million for the financial year 2007-08, the achievement was 114.32%Footwear is the engine of growth for the entire Indian leather industry and India is the second largest global producer of footwear after China, accounting for 14% of global footwear production. of 14.52 billion Pairs.India Produces 2065 million pairs of Different Categories of Footwear (Leather Footwear 909 million pairs, Leather Shoe uppers 100 million pairs and Non-leather footwear 1056 million pairs)India exports about 115 million pairs. Thus, nearly 95% of its production goes to meet its own domestic demand.Footwear exported from India are Dress Shoes, Casuals, Moccasins, Sport Shoes, Horrachies, Sandals, Ballerinas, Boots, Sandals and Chappals made of rubber, plastic, P.V.C. and other materials.

MNC Brands sourced : from India

Acme,Clarks,ColeHann,Deichmann,Ecco,Elefanten, Florsheim,Gabor,Hasley, Hush Puppies, Double H, Justin, Marks & Spencer, Nautica, Nike, Nunn. Indian Brands sold in India : Red Tape, Bata, Liberty , Khadims, Lakhani, Action Nearly 75% of Indias Export of Footwear is to the European Countries and the USA.1. The Indian Footwear Industry provides employment opportunities to a total of 1.1 million people, mostly from the weaker sections of the society. Out of this, about 0.2 million are employed in the organized sector, 40% of whom are women. Remaining 0.9 million people are engaged in unorganized footwear sector like rural artisans, cottage and household units etc. The Footwear Sector is now de-licensed and de-reserved, paving the way for expansion of capacities on modern lines with state-of-the-art machinery. To further assist this process, the Government has permitted 100% Foreign Direct Investment through the automatic route for the Footwear Sector.

Footwear export has increased from US$40.15 million in 1977-78 to US$ 1475.83 million in 2007-08

Chart showing Global Import of footwear Vs. Indian Export of Footwear

India s Exports of Footwear Country-wise Share in Total Exports (2007-08) Source: DGCI& S

The European Union and the USA are the major markets for Indian Footwear accounting for 79.95% and 9.22% share respectively in Indias total footwear export. The major markets for Indian Footwear are Germany 16.66%, UK 16.31%, Italy 15.32%, USA 9.22%, France 7.81%, Spain 5.10%, Netherlands 4.91%, Portugal 2.50%, UAE 2.48% and Denmark 1.18%. These 10 countries together accounts for nearly 81.49% of Indias total leather products export. (http://footwearsinfoline.tripod.com/export_import.htm)NOTE:- 20% of total Indian shoe production come from Bata. i.e about 8crorte pairs.

Design-cum-Resource Centre for Footwear & Leather Industry:

Leather goods and shoes as well as items of fur are being manufactured in the Small Scale Industry/Tiny sector traditionally in Srinagar and Jammu. The Central Government would make an initial contribution of Rs. 1.00 crore as grant for setting up a Design/Resource Centre and National Leather Development Programme (NLDP) will provide assistance for machinery, training and salaries of professionals. Under the National Leather Development Prograramme, exclusive assistance will be provided to market finished leather products of the artisans of the State in the form of buyer seller meets and exhibitions.RAW MATERIAL FOR SHOES

Synthetic leather Shoe leather PU leather Air blown PVC soles PU welted sole TPR soles for men PU sleeper sole PVC gents sole PU shoe sole Emulsion polymers (latexes) Pell ethane thermoplastic polyurethane elastomers Polyurethanes Voralast polyurethane system Microfiber leather

COMPANY PROFILE

INTRODUCTION ABOUT BATA INDIA LIMITED

Bata India Ltd (BIL) is a 51% subsidiary of Bata (BN) BV of Netherlands. BIL is India's largest manufacturer and marketer of footwear products. Besides leather, rubber and canvas footwear, BIL also markets sports shoes, accessories and garments. BIL sells about 59 million pairs per year throughout India and in overseas markets such as USA, UK, Europe, Middle East and Far East. BILs strong points are the strong parent support it enjoys, a strong brand name supported by value for money positioning and its large retail reach with 1,600 exclusive retail stores and a presence in another 30,000 shops.

BIL's business history in India has been marred by innumerable labor problems. Despite having one of the highest employee cost (25% of sales), there continue to be innumerable conflicts between the labor unions and the management at its various locations. The company's Faridabad factory was under lock out from Feb to Nov '99. In the year 2000, its Peenya factory has been under lock out from Mar '2000 to Jul '2000. The company had signed a 3-year wage agreement with the labor union at Batanagar its largest manufacturing unit. A key feature of the domestic footwear industry is the large presence of the unorganized sector in the former. The unorganized sector accounts for two-thirds of the industry's total volumes. The industry size is estimated at 650mn pairs valued at Rs75bn. The industry growth has slowed down from 20% growth rate in the 90s to 8-10% in the last 2-3 years. As the quantitative restriction on the import of footwear has been lifted, the market being flooded by imports. BIL is making fresh investment to upgrade the manufacturing processes of footwear to face competition from imported brands. Also the company has commenced imports of footwear with effect from F12/2000. It imported footwear worth Rs52mn during the year, and this is likely too increase in the coming yearsBIL's operating profit for F12/2000 has declined by 29.55% to Rs482.6mn as against Rs685mn in the previous year. OPM reduced to 6.7% in FY12/2000 as compared to 9.4% last year. The company has attributed lower growth to poor market conditions and restricted supplies to wholesale dealers. Return on capital employed (pre tax) has also eroded from 15.1% in FY12/99 to 8.5% in FY12/2000. Management restructuring: Bata has put a new management team in place in January 2001. Mr. Chandu Morzaria has been appointed as Managing Director in place of retiring MD Mr. W K Weston. Bata is set to exploit the opportunity offered by the clubbing together of its operations in India, Pakistan, Bangladesh and Sri Lanka under a single managing team. BIL has also brought in Mr. Harnan Ordonez from Toronto to look after the wholesale business, Mr. Tony Van Es to ensure product quality, Mr. W Riber from Pakistan for product development and Mr. Dean Turner, CFO-Asian region to look after the entire finance function, with an attempt to improve operations and profitability in all areas.Bata was originally incorporated as Bata Shoe Company Limited on December 23, 1931 under the Indian Companies Act. The company was promoted by Leader AG, Switzerland, a member of the multinational BSO (BSO) with a 100% equity shareholding. Bata Netherlands BV currently holds 51% stake in the company. In 1973, the company changed its name to Bata India Limited and made its first public issue of shares.

Bata Limited: all over the world

Bata Shoe Company Ltd, Toronto operating since 1931 selling business in more than 90 countries. In India its Registered Office is in Kolkata. (6A, S N Banerjee Road, Kolkata-13; Ph:-91(33)2443416-18, 91(33)2440456,Fax:-91(33)2447418, E-mail(batacal@bataindia.com) ITALY FlorenceCANADA - TorontoITALY - Venice

FRANCE ParisSWITZERLAND - ZurichPORTUGAL - Lisbon

CZECH REPUBLIC - PragueCZECH REPUBLIC - OstravaCZECH REPUBLIC Brno

CHILE - SantiagoCHILE - Puente AltoLEBANON - Beirut

CYPRUS - NicosiaSOUTH AFRICA - Umblanga RocksINDONESIA - Bandung

THAILAND - BangkokMALAYSIA - Kuala LumpurINDIA - Kolkata

HISTORY

1. Sequentional Milestones:

1931 : Bata India Limited the Company was incorporated at Calcutta. The Company Manufacture and market of all types of footwear, footwear components, leather and products allied to footwear trade.Bata was originally promoted as Bata Shoe Co Pvt Ltd by Leader AG, Switzerland, a member of the Toronto-based multinational, Bata Shoe Organization (BSO). It became a public limited company in 1973 and the name was changed to Bata India Ltd.

1937 :Tanning was introduced at the new factory at Batanagar, along with the introduction of leather products towards the end of the year. 1942 :In addition to the footwear manufacturing plant, a machinery department was set up which produced the first Indian-made major shoe machine. A leather footwear factory was established at Patna, Bihar, which is known today as Bataganj. 1952 :In Mokamehgat, a tannery was established and a hide purchasing centre was also set up there. Another factory was constructed at Faridabad. 1973 :With the public issue of capital in June, Leader A.G. St. Moritz, Switzerland offered for sale 5,00,000 shares out of their holdings at a premium of Rs 20 per share (2,00,000 shares each to LIC and UTI and 1,00,000 shares to the public). 1977 :Leader A.G. St. Moritz, Switzerland offered for sale 8,00,000 shares at a premium of Rs 8 per share to resident Indian nationals thereby reducing their holdings to 12,00,000 shares or 40% of the issue capital. Another 47,14,000 No. of equity shares of Rs 10 each at a premium of Rs 25 per share were issued to Bata (BN) B.V., Amsterdam, a wholly owned subsidiary of Leader A.G. St. Moritz, Switzerland, in order to raise their holding in the Company from 40% to 51%. 1979 :7,50,000 bonus shares issued in prop. 1:4. 1984 :15,00,000 bonus shares issued in prop. 2:5 in April. 1987 :The Company privately placed with financial institutions (UTI, LIC, GIC & its subsidiary) 15% debentures worth Rs 5 crores. The Company also allotted debentures worth Rs 1.75 crores to the Army Group Insurance Fund. - The Bata Shoe Organisation consists of 96 independently run companies in 90 countries throughout the world. 52, 50, 000 bonus shares issued in prop. 1:1. 1988 :Agreement was arrived at with Adidas of West Germany for manufacture and marketing of sports and special application footwear, spots goods and sports wear in India and the products were expected to be launched in December, 1989.Marketing of `Star' clothings designed by Murjani International, New York, U.S.A. and sourced through Inmark Brands Pvt. Ltd., was launched. A new brand of shoe, `Tigre' was introduced during the year for sales through wholesalers and independent retailers. 1989 :The Company successfully launched `Adidas' collection of hi-tech sports footwear. As a result of the R&D activities, special leather board was developed as a substitute for insole leather. 1990 :A highly versatile sample 18-station bicolour injection moulding plant was installed in the Bangalore factory for production of `State-of-the-art' injection moulded shoes with synthetic and textile uppers and specially developed PVC compounds as soleing material.Pursuant to a Scheme of Arrangement between the Company and Bata Properties, Ltd. a wholly-owned subsidiary of the Company, certain properties constituting the real estate division of the Company were transferred to BPL for better development and management with effect from 1st July.

1991 :A promotional brand `Tigre' was launched to keep the factories full at all times and thereby reduce losses due to under recovery of overheads.The Company issued non-convertible debentures aggregating Rs 3.50 crores to SBI Mutual Fund. These debentures are redeemable in three equal installments at the end of 6th, 7th and 8th year from the date of allotment. Negotiations were in progress for private placement of the remaining debentures. 1992 :The workers at Batanagar factory went on strike from 3rd January, to 23rd May, which resulted in substantial loss of production during the initial 6 months of the yr. The Company undertook to set up a green field export oriented unit at Hosur in Tamilnadu with the State-of-the-art technology.Over the years, the Company with the collaboration of Bata Development, Ltd., London, U.K., and its association with Bata, Ltd., Toronto, has been building up its own well-equipped and up-to-date R&D organisation. 1993 :The Company undertook to expand and modernise its existing plants for capacity optimisation to become cost efficient on a global basis. Apart from it also undertook expansion and upgradation of its retail stores. Export Oriented Unit was also to be set up at Hosur in Tamil Nadu. - During January, the Company issued 105,00,000 No. of equity shares of Rs 10 each at a premium of Rs 20 per share on rights basis in the proportion of 1:1. Allotment of 1,856 No. of equity shares was kept in abeyance since the matter was sub-judice. The balance 104, 98,144 shares were allotted. 1995 :13,114,000 No. of equity shares allotted to Bata (BN) BV Amaterdown, The Northerlands the holding company.The Long Term Agreement with the Bata Mazdoor Union representing employees of Batanagar and Calcutta Offices was signed at bipartite level satisfactorily without any disruption of work. 1996 :The Company has received a notice in writing from a member of the Company under Section 257 of the Companies Act, 1956 signifying his intention to propose the appointment of Mr Thakur as a Director of the Company. 1997 :India's largest shoe company Bata India (BIL) has performed admirably to stage a remarkable turnaround for the year ended December 1996.Bata has entered into a marketing tie-up with Nike wherein the latter's products will be offered from select Bata outlets. The company's debt-equity ratio is also set to improve dramatically to 0.60:1 from 1.90:1 in December 1996, and 2.06:1 in December 1996.Bata India, a 51 per cent subsidiary of Canada based Bata Shoe Organisation, had last revalued its buildings in 1969, and the latest exercise which will cover all fixed assets is expected to substantially prop up its reserves. 1998 :Bata India, a subsidiary of the Canadian multinational Bata Shoe Organisation, has suspended its after-sales service.Every Bata outlet, 1,000 owned and over 600 joint ventures were expected to sell Hush Puppies, Marie Claire and Adidas.Bata India has proposed a dividend of 85 paise per share to its shareholders for the year ended December `98.The shoe major had concluded long term wage agreements with the workers of its factories at Faridabad (Haryana) and Mokamehghat (Bihar) for three years up to 2001. 1999 :Bata needed to launch new products on a regular basis by expanding its women's range, and moving into the premium segments it had vacated.The company launched the `Sundrops' line at New Delhi on August 16. The company signed seven long-term agreements and the last in Batanagar is in an advanced stage of negotiations which will be settled soon.Bata's Faridabad factory workers' union finally reached an agreement with the company management, ending the nearly eight-month-old lock-out at the unit.Bata India is aiming to achieve a 15 per cent growth in turnover and profits in 1999, to reach the target set out in the Vision 2001 plan drawn up by Compass, the international board of the Bata Shoe Organisation (BSO).Shoe major Bata India, which is set to unleash a new advertisement campaign for its new ladies range `Sundrops', has signed up film actress Rani Mukherjee to endorse the line. 2000 :Bata India (Bata) is the largest footwear manufacturer and produces a wide range of footwear such as canvas, rubber, leather, plastic and so on.The Company has lifted the lock-out at its Peenya factory in Karnataka. The lockout was declared on March 8th following a strike by the employees' union.2002 :Bata India Ltd has informed BSE that the Board appointed Mr Jaswant Singh as Wholetime Director Marketing & Commercial of the Company w e f August 01, 2002.Mr MSM Ghaznavi, Director retail has resigned from the Board.Bata India Ltd has informed BSE that at the meeting of the Board of Directors of the Company held on September 17, 2002 Mr Stephen John Davies was appointed the Managing Director of the Company. The Board also appointed Mr C Morzaria as Executive Vice Chairman. Mr F Garcia, Managing Director of the Company has resigned from the Board. 2003 :Bata India has decided to appoint brand managers for each product group. Each of these managers will be assisted by a dedicated team who in a new-found aggression will tackle dwindling sales. This also coincides with Bata's decision to recast its retail outlets along four customer segments, into Bazaar, Family, City and Flagship stores, abandoning its earlier territory-based focus. At the same time the company is also planning to raise its advertising budget to 5% of turnover against 2% of turnover now.

1. Strategic Shift Over Years: Bata a subsidiary of the Toronto based BSO, worlds largest manufacturer of footwear, was originally incorporated as Bata shoes company ltd in 23rd December 1931.The parent company sold 300 million pairs of shoes in more than 90 countries in 1999.The chairman of BSO, Thomas J . Bata , inherited this legacy on his fathers death in 1932.Forced to leave his home land, Czechoslovakia, in the wake of the Nazi invention, Thomas Bata moved to Canada with some 250 managers, supervisors ,workers & their families.

Two year after its in corporation, Bata commenced its maiden footwear production at Konnagar, near Calcutta. However it commissioned its first integrated shoe production facility at Batanagar in 1936.The Kottayam (Kerala) rubber collection centre came up in 1939. Later, it set up another factory at Batagunj (Bihar) in 1942 which was supported by a tannery at Mokamghat, near Patna. In 1951, Batas Faridabad factory started producing canvas & rubber footwear. In 1973, Bata become a public ltd company & was henceforth called Bata ltd

Batas reasonably priced comfort able footwear particularly the study school shoes made it one of the best known brands of the country. In the late 1980s, Bata had a virtual monopoly in the organized footwear industry with the market share of 82% in 1989. The company remained focused on basic quality footwear for the middle classes till the mid 1980 .Its early presence in the Indian footwear market, which was till then dominated by the unorganized sector, gave it a head start in terms of brand development and retailing. In the late 1980s, under the leadership of Vijay Lamba the company realized that the rising affluence of the Indian middle class and the emergence of upwardly mobile professionals had brought a sea change in consumer taste, which it could ill afford to ignore. The new wave of consumerism brought in the new competitors in the early 1990s. Lamba felt that over the years Bata had acquired a dull image. He started toning it up by increasing the advertising budget, refurbishing its stores and introducing jazzy new up market accessories like wallets, belts, ties, briefcases, cosmetics and perfumery.

The change in the marketing thrust became all the more visible when in 1992, Lamba, who served Bata for 22 long years, was replaced by Pradeep Kumar Dutt, a marketing expert from Lipton India, as new managing director. Considered a marketing guru, Dutt was instrumental in strengthening the focus of the company to the upper segment with premium ranges which included Hush Puppies, Westminister, Lotto, Adidas for men and the Marie Claire range for women. Though the employees resisted Batas steps towards becoming a widely diversified conglomerate, its brand extension to appeals which initially started as a promotional gambit slowly developed into a full fledged business, under the aegis of Mr. Dutt.

The increased sales promotion drives gave the impression that Dutt had changed the focus to the upper segment. But Dutt denied saying, Introduction of some of the premium brands were primarily for building an image for Bata. But as ever, Bata has kept the medium category segment as its target area. The older employees in Bata viewed these changes with apprehension as a vice president of the company commented, Bata is synonymous with mass production, not fashion wear and premium lines. It is basically value for money & volume business. Any change in the product line has to be managed by insiders, people whom have grown with the organization and know the footwear trade inside out. In fact in a conservative company like Bata, Dutts ascendancy itself was viewed with a fair amount of skepticism. The resentment that a large section of the older employees had against the appointment soon came to the surface. Severe criticisms across alleging Dutt of unfairly inducting some of his trusted man from outside the company. This had a demoralizing effect on the employees of Bata. Observers also attributed the deep financial irregularities to the policies of outsourcing, a charge though refuted by Dutt.

Meanwhile, in the 1993-94 central budgets, the withdrawal of the excise duty exemption on footwear by the govt. on pairs costing Rs. 200 and above forced Bata to raise prices by 20%. For the middle-class customers the prices seemed to be exorbitant. The sales personnel also ignored the popular segment and preferred to push high margin shoes, which ranked in better incentives for them. Bata also blundered on the advertising front during 1994, when it spent more in the first half of the year, though the later was more lucrative being the festive season in India.For the calendar year 1994, Dutt targeted a net profit of Rs. 300 million. Popularly known as the 300 challenge, it called for suggestions from every executive of the company on the cost control. But the scheme was immediately dropped after it miserably fell short of the target. This kept Dutt from setting any target for 1995. in an industry dominated by the small-scale sector, Bata was severely hit by the drop in volumes caused by switching over of a sizable portion of its fixed clientele to price competitive manufactures. In 1995, Bata, for the first time, reported a loss of Rs. 420 million. The countrys largest shoemakers sluggish performance was evident when the market share dropped from 82% in 1989 to 40% in 1995. Thus, when the new management team under Keith Weston took over in 1995, Bata faced a deep crisis with a bloated, unsalable product line, diminishing market share and deteriorating worsening negative cash flow.

1. Indian Structure And Development & BataCompetition as phenomenon rewards the dynamic and at the same time penalizes the sluggish. Thus, the strategy prescription for corporate dominance is to upgrade the anachronisms that that have germinated and blossomed under regime of the closed economy. Change is the only prescription for corporate survival, however in a large organization like Bata, this phenomenon is considerably slow and positive outcome of which will only be visible after a lapse of time.The management is taking major restructuring measures to distribution logistics, reducing costs, strengthening merchandising and marketing along with launch of new products. It is expected that these steps will contribute to the improved performance of the company in 2003.

1. Bata: Opportunities and ThreatsBeing proactive is one of the hackneyed expressions of modern jargon. At the same time, it portrays the importance of anticipating the future with creativity and innovation. The thrust, therefore, is on innovation and creation of conditions and products that satisfies the requirement of varied class of consumers. It is true that, innovation that may be contemporary today becomes old-fashioned tomorrow. Still, there is a little doubt that a Corporate, which is able to coalesce a realistic vision of consumers ever-changing future requirement is more likely to succeed in this aggressively competitive regime.

The Company at present is on the stage of consolidation and in the process of re-inventing it self although the basic ideology value for money remains the same. The company in its true sprit is consistently trying to give the consumers the full satisfaction of rupee spent. The technical collaboration entered with Bata Limited, Canada step towards this cause and will only mould the Companys future towards betterment.Competition in days to come will be more aggressive. Although the company is com0petent to withstand this competition, a massive restructuring is presently required to give support to the companys endeavour. The company in its present form will only lose its market share until and unless the company rationalizes its huge workforce to make the products price competitive. But, unfortunately our entire system is strained by the antiquated labour laws. The Scheme of arrangement is a step towards this direction and will not only be beneficial to the Company but also to the Units, which will independently function under a more focused management and attain economic viability.Threats are faced from unorganized sectors having low cost of production. Also chap imports from neighboring countries is eating into companys market share. Within such inhibitions, the brand Bata definitely gives a level of comfort in minds of consumers.A well-planned and organized communication strategy is being adopted to disseminate the product based knowledge. Print media campaigns are prolifically adopted as means of reaching out to the rural consumers.The companys extensive retail network is the foundation of its sale. The existing network is being refurbished and worked upon to provide a comfortable shopping ambience. New shops are being added to strengthen the existing retail network. Rani Mukherji continues to be Batas brand ambassador.1. Internal Control Systems and Their Adequacy:Bata has proper and adequate system of internal controls to ensure that all assets are safeguarded and protected against loss from misuse or disposition and that transactions are authorized, recorded and reported correctly.The internal control is supplemented by an extensive program of internal; audits, review by management and documented policies, guidelines and procedures. The internal control is designed to ensure that the financial and other records are reliable for preparing financial statement and other data, and for maintaining accountability of assets.1. The Outlook :The Company is responding its image from Manufacturing Company to Marketing Company. The path breaking exercise is, therefore, to align its position and stress on corporate brand building with more emphasis on marketing of quality services and products. Undoubtedly, the existing high powered electrifying brand image with deep penetration level will offer the much required support to the present exercise. Brand managers are working on this new corporate brand building exercise hat will be a departure from the past and that visualizes combating competition.The companys focus is on quality sale with stress on consumer satisfaction. Quantity sale can increase the turnover, but quantity without quality will only destabilize the consumer confidence that has taken ages to build up. Even if the company has to outsource its product it would not hesitate to go into strategic tie-ups as ultimately the consumers satisfaction is too important to ignore.The company has also identified strategic areas where cash drain is taking place and depleting the financial resources. It plans to concentrate on these core areas and implement strategies to restrict such financial drains. A Company of this stature has many unrelated cost which are indispensable, also the company is fully committed to its social liabilities and social costs which add to the cost of production. The Company is thus emphasizing on cost reduction as a policy matter because the old age adage a rupee saved is a rupee earned is still relevant today.

CHAPTER-2 LITERATURE REVIEW

2.1 LITERATURE REVIEW:

Literature Review is the documentation of a comprehensive review of the published and unpublished work from secondary sources of data in the areas of specific interest to the researcher.

The main aim is to find out problems that are already investigated and those that need further investigation It is an extensive survey of all available past studies relevant to the field of investigation. It gives us knowledge about what others have found out in the related field of study and how they have done so.

A successful brand is an identifiable product, service, person or place augmented in such a way that the buyer or user perceives relevant, unique added values which match their needs most closely. Furthermore, its success results from being able to sustain these added values in the face of competition. Successful brands deliver benefits to satisfy customer needs. These needs include rational needs (such as features, packages or the price of a brand) and emotional needs (such as prestige, distinctiveness, style or the social reassurance of a brand). Brand loyalty measurement has not flourished in the marketing literature. 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.Scott Galloway stated a very good definition showing importance of brands in todays world of marketing that Brand is the face of a business strategy ( Scott Galloway in Alker, 2000 :33)another well appreciated definition of brand given by American Marketing Association cited in (Kotler 2003: 418) A brand is name, term, sign, symbol, or services of one seller or a group of seller to differentiate them from those of competitors.A brand is essentially a marketers promise to deliver a specific set of features, benefits and services consistently to buyers. The marketer must think that he is offering a contract to the customer about how the brand will perform ( kotler 2003)Le Pla et ala, (2003: 3) give a more profound and in depth definition of brand: Brand is the interaction between core company ( product or service ) strengths and what is customer value.Company strengths are what company does well. The things that the customers value include the benefits of a products features, as well as what the customer see as the ongoing worth of a relationship with the company.According to Kapferer (1997 : 56), Products are mute: the brand is what gives them a meaning and purpose, telling us how a product should be read. A brand is both a prism and a magnifying glass through which products can be decoded.Renault invites us to perceive its models as cars for living.. brands guide our perception of products. Hence it can clearly be seen from the above paragraph that branding goes a long way in giving a distinct identity to a product.Rowley (1997) explains that brand communicates with consumers, according too him when consumers are familiar with a brand, they expect the same qualities, benefits and advantages from products or services which are provided under that specific brand, this easily makes their decision in favour of the brand instead of searching or gathering information regarding products fulfilling their requirements. Therefore, it can be suggested that brand accelerates consumers process of decision making as it provides two different ways of communication between suppliers and their consumers (Rowley, 1997)James, R.P., (1994)in his study examined the brand loyalty and brand switching behavior of cooking oil consumers and observed the existence of a positive relationship between age and education of the consumers and their brand loyalty. Television and newspaper advertisements played a significant role in shaping the brand loyalty behavior of the housewives. Mostly out of stock situation (OSS)led to brand switching behavior with the consumers. Besides, store loyalty and brand loyalty of the consumers are positively correlated.

2.2 ABOUT THE TOPIC:

Review of literature shows the previous studies carried out by the researcher in this field. Previous studies are reviewed in order to gain insight into extent of research. The research problem can be more understood and made specific referring to theories, reports, records and other information made in similar studies. This will provide the researcher with the knowledge on what lines the study should proceed and serves to narrow the problem. The main objective of the study is to measure Brand Awareness of TNPL products among the people and the reviews are as follows:BrandA traditional definition of a brand was: the name associated with one or more items in the product line, that is used to identify the source of character of the item(s) (Kotler, 2000). The American Marketing Association (AMA) definition of a brand is a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitorsBrand Equity (Rooney, 1995) defines brand equity as a set of assets and liabilities linked to a brands name and symbol that adds to or subtracts from the value provided by a product or service to a customer. However, many factors can be attributed to the value of the brand for example awareness, recall and recognition. Brand equity as a differentiating factor that can influence consumers response to brands marketing activities. In an attempt to define the relationship between customers and brands, the term brand equity in the marketing literature emerged There have been different perspectives or considering brand equity; the customer-based perspectives, the financial perspectives and combined perspectives. The first perspective of brand equity is from a financial markets point of view where the asset value of a brand is appraised (Farquhar, 1991). Customer-based brand equity is evaluating the consumers response to a brand name (Keller, 1993). While this study focus on the customer based perspectives.

A Framework for Measuring Customer-Based Brand EquityAaker (1991) defines Brand equity as the value that consumers associate with a brand. It is the consumers perception of the overall superiority of a product carrying that brand name when compared to other brands. Brand equity refers to consumers perception rather than any objective indicators. A conceptual framework for measuring customer-based brand equity is developed by using the conceptualization of Aakers five dimensions of brand equity Five Dimensions of Brand Equity: The Proposed Model

A FRAMEWORK FOR MEASURING CUSTOMER-BASED BRAND EQUITY

1. Brand AwarenessAaker (1991) defines brand or name awareness as the ability of a potential buyer to recognise or recall that a brand is a member of a certain product category. Therefore it is important that a link between product class and brand is implicated because the scope of brand awareness is very wide, ranging from an unsure sensation that the brand name is recognised, to a conviction that it is the only one in the product class. Brand awareness refers to the strength of a brands presence in the consumers mind.It is a measure of the percentage of the target market that is aware of a brand name. Marketers can create awareness among their target audience through repetitive advertising and publicity. Brand awareness can provide a host of competitive advantages for the marketer. These include the following: Brand awareness renders the brand with a sense of familiarity. Name awareness can be a sign of presence, commitment and substance. The salience of a brand will decide if it is recalled at a key time in the purchasing process. Brand awareness is an asset that can be inordinately durable and thus sustainable. It may be extremely difficult to dislodge a brand that had achieved a dominant awareness level. Brand awareness is vitally important for all brands but high brand awareness without an understanding of what sets one apart from the competition does one virtually no good. Brand awareness is measured according to the different ways in which consumers remember a brand, which may include brand recognition, brand recall, top of the mind brand and dominant brand. Brand recognition: It related to consumers ability to confirm prior exposure to that brand when given the brand a cue. It requires that consumers can correctly discriminate the brand as having been previously seen or heard. Brand recall: Brand recall relates to consumers aptitude to retrieve the brand from memory given the product category, the needs fulfilled by the category or a purchase or usage situation as a cue. It requires consumers to correctly generate the brand from memory when given a relevant cue. Top-of-mind brand: This is the brand name that first comes to mind when a consumer is presented with the name of a product classification. Dominant Brand: The ultimate awareness level is brand name dominance, where in a recall task; most consumers can only provide the name of a single brand.According to Aaker (1996), for new or niche brands, recognition can be important. For well-known brands recall and top-of-mind are more sensitive and meaningful. Brand knowledge and brand opinion can be used in part to enhance the measurement of brand recall.

2. Brand AssociationsA Brand association is the most accepted aspect of brand equity (Aaker 1992). Associations represent the basis for purchase decision and for brand loyalty. Brand associations consist of all brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes (Kotler and Keller 2006) and is anything linked in memory to a brand. Chen A.C.H (2001) categorized two types of brand associations - product associations and organizational associations.a. Product AssociationsProduct associations include functional attribute associations and non-functional associations.Functional attributes are the tangible features of a product (de Chernatony and McWilliam, 1989). While evaluating a brand, consumers link the performance of the functional attributes to the brand (Pitta and Katsanis 1995). If a brand does not perform the functions for which it is designed, the brand will has low level of brand equity. Performance is defined as a consumers judgment about a brands fault-free and long-lasting physical operation and flawlessness in the products physical construction.Non-functional attributes include symbolic attributes (Farquhar & Herr 1993) which are the intangible features that meet consumers needs for social approval, personal expression or self-esteem Consumers linked social image of a brand, trustworthiness, perceived value, differentiation and country of origin to a brand.

Social ImageLassar (1995) limit the reference of the image dimension to the social dimension, calling it social image as social image contributes more to brand equity. Social image is defined as the consumers perception of the esteem in which the consumers social group holds the brand. It includes the attributions a consumer makes and a consumer thinks that others make to the typical user of the brand.Perceived ValueValue appeared in several brand equity models (Feldwick 1996) define perceived value as the perceived brand utility relative to its costs, assessed by the consumer and based on simultaneous considerations of what is received and what is given up to receive it. Consumer choice of a brand depends on a perceived balance between the price of a product and all its utilities (Lassar 1995). A consumer is willing to pay premium prices due to the higher brand equity.TrustworthinessBrand equity models (Lassar 1995) regard trustworthiness of a product as an important attribute in assessing the strengths of a brand. Also define trustworthiness as the confidence a consumer places in the firm and the firms communications and as to whether the firms actions would be in the consumers interest. Consumers place high value in the brands that they trust.Differentiation/DistinctivenessThe Marketing Science Institute (Leuthesser 1988) states that the underlying determinants of consumer-based brand equity are that brands provide benefits to consumers by differentiating products, as they facilitate the processing and retrieval of information. Other marketing literatures (Ries and Trout 1985) also stress the importance of the distinctive character of brand positioning in contributing to the success of a brand. Distinctiveness is defined as the degree to which the consumer perceives that a brand is distinct from its competitors. A brand can have a price premium if it is perceived as being different from its competitors.

Country of originThakor and Kohli (1996) argue that brand country of origin must also be considered. He defines brand origin as the place, region or country to which the brand is perceived to belong by its customers. Country of origin is known to lead to associations in the minds of consumers. The country of origin of a product is an extrinsic cue, which, similar to brand name, is known to influence consumers perceptions.Country of origin refers to the country of origin of a firm or a product (Johansson et al. 1985), or the country where the product is manufactured or assembled. Also states that less concern should be given to the place where brands manufacture their products, and more to the place where people perceive the brands country of origin to be. Therefore, country of origin in the proposed framework referred to the brands country of origin.

b. Organizational AssociationsOrganizational associations include corporate ability associations, which are those associations related to the companys expertise in producing and delivering its outputs and corporate social responsibility associations, which include organizations activities with respect to its perceived societal obligations According to Aaker (1996), consumers consider the organization that is the people, values, and programs that lies behind the brand. Brand-as-organization can be particularly helpful when brands are similar with respect to attributes, when the organization is visible (as in a durable goods or service business), or when a corporate brand is involved.Corporate social responsibility (CSR) must be mentioned as another concept that is influencing the development of brands nowadays, especially corporate brands as the public wants to know what, where, and how much brands are giving back to society. Both branding and CSR have become crucially important now that the organizations have recognized how these strategies can add or detract from their value (Blumenthal and Bergstrom 2003). CSR can be defined in terms of legitimate ethics or from an instrumentalist perspective where corporate image is the prime concern.3. Perceived qualityPerceived quality is the customers judgment about a products overall excellence or superiority that is different from objective quality (Zeithaml 1988). Objective quality refers to the technical, measurable and verifiable nature of products/services, processes and quality controls. He classified the concept of perceived quality in two groups of factors that are intrinsic attributes and extrinsic attributes. The intrinsic attributes are related to the physical aspects of a product (e.g. colour, flavour, form and appearance); on the other hand, extrinsic attributes are related to the product, but not in the physical part of this one (e.g. brand name, stamp of quality, price, store, packaging and production information Its difficult to generalize attributes as they are specific to product categories.Zeithaml (1988) classify the concept of perceived quality in two groups of factors that are intrinsic attributes and extrinsic attributes. The intrinsic attributes are related to the physical aspects of a product (e.g. colour, flavour, form and appearance); on the other hand, extrinsic attributes are related to the product, but not in the physical part of this one (e.g. brand name, stamp of quality, price, store, packaging and production information. Its difficult to generalize attributes as they are specific to product categories (Olson and Jacoby 1972)

4. Brand LoyaltyLoyalty is a core dimension of brand equity. Grembler and Brown (1996) define brand loyalty as the attachment that a customer has to a brand and describe different levels of loyalty. Behavioural loyalty is linked to consumer behaviour in the marketplace that can be indicated by number of repeated purchases or commitment to rebuy the brand as a primary choice. Cognitive loyalty which means that a brand comes up first in a consumers mind, when the need to make a purchase decision arises, that is the consumers first choice. The cognitive loyalty is closely linked to the highest level of awareness (top-of-mind), where the matter of interest also is the brand, in a given category, which the consumers recall first. Thus, a brand should be able to become the respondents first choices (cognitive loyalty) and is therefore purchased repeatedly (behavioural loyalty).

Chaudhuri & Holbrook (2001) mention that brand loyalty is directly related to brand price. Identify price premium as the basic indicator of loyalty. Price premium is defined as the amount a customer will pay for the brand in comparison with another brand offering similar benefits and it may be high or low and positive or negative depending on the two brands involved in the comparison.Customer SatisfactionPeter and Olson (1993) mention that interaction between the peoples emotions, moods, affection and special feelings is called consumer behaviour, in other words in environmental events which they exchange ideas and benefits each is called consumer behavior. Buying behavior reflects who purchase product for personal use and not for business purposes.Nigel F.Piercy (1996) in his study The effects of customer satisfaction measurement: the internal market versus the external market Reports some of the findings of a recent study of the internal market effects of customer satisfaction measurement, and identifies a number of ways in which use of customer satisfaction information have negative effects within the organization, which may stand in the way of implementation of market strategies of service and quality. This suggests a management agenda which extends far beyond the acquisition of customer satisfaction data and reporting systems, to consider the full impact of such measurement systems.

REFERENCES1. Aaker (1991), Measuring brand equity across products and markets, California ManagementRev, 38(Spring): 57-62.2. Aaker D.A. (1992), Building strong brands, Hillsdale, NJ: Lawrence Erlbaum Associates.3. Aaker, D. A. (1996), Measuring brand equity across products and markets, California Management Rev. 38(Spring): 102-120.4. Blumenthal, D. and Bergstrom A. J. (2003), Brand councils that care: Towards the convergence of branding and corporate social responsibility, Brand Management 10 (4/5): 327-341.5. Chaudhuri, A. and Holbrook M. B. (2001), The chain of effects from brand trust and brand effect to brand performance: The role of brand loyalty, Journal of Marketing 65(April): 81-93.6. Chen A.C.H. (2001), Using free association to examine the relationship between the characteristics of brand associations and brand equity, Journal of Product & Brand Management 10 (7): 439 4517. De Chernatony, L. & McWilliam G. (1989),The varying nature of brands as asset, International Journal of Advertising 8: 339-49. 8. Farquhar (1991)3, Recognizing and Measuring Brand Assets, Marketing Science Institute, Cambridge, MA9. Farquhar, P.H., Herr P.M. (1993),The dual structure of brand associations, In Aaker, D.A., Biel, A.Eds. Brand Equity & Advertising: Advertisings Role in Building Strong Brands, 263-77. 10. Feldwick, P. (1996), What is brand equity anyway and how do you measure it, Journal of the Marketing Research Society. 38: 85-104.11. Gremler, D. and Brown S.W. (1996), The loyalty ripple effect: appreciating the full value of customers, International Journal of Service Industry Management 10(3):271-9312. Johansson (1985), Assessing the impact of country of origin on product evaluations : a new methodological perspective, Journal of Marketing Research 5(3): 175-187.13. Keller KL. (1993), Conceptualizing, measuring, and managing customer-based brand equity, Journal of Marketing 57(1): 1-22.14. Kotler, Philip (2000), Marketing Management. The Millennium Edition, Upper Saddle River, PrenticeHall.15. Kotler, Philip and Keller Kevin L.(2006), Marketing Management, 12th edition. Upper Saddle River, NJ: Prentice Hall.16. Lassar, W.(1995), Measuring Customer-Based Brand Equity, Journal of Consumer Marketing 12(4): 11-19.17. Leuthesser (1988), Defining, measuring and managing brand equity: A conference summary.Report #88-104, Cambridge, MA: Marketing Science Institute.18. Nigel F. Piercy (1996),The effects of customer satisfaction measurement: the internal market versus the external market, VOl:14, Pp.10719. Olson, J.C. and Jacoby, J. (1972), Cue utilisation in the quality perception process, In Venkatesan, M. Ed. Proceedings of the Third Annual Conference of the Association for Consumer Research,Association for Consumer Research, Chicago, IL, pp. 167-79.20. Peter,J.P. and J.C.Olson, (1993)12, Consumer behavior, Vol: 5,Pp.15.21. Pitta, D. A. and Katsanis (1995), Understanding brand equity for successful brand extension, Journal of Consumer Marketing 12(4): 51-64.22. Ries, Al and Trout, Jack. (1985),Challenges and opportunities facing brand management: An introduction to special issue, Journal of Marketing Research 31: 149-158.23. Rooney, J. A. (1995), Branding: a trend for today and tomorrow, Journal of product & brand management, 4(4) 48-55.24. Thakor and Kohli Chiranjeev S. (1996), Brand Origin: Conceptualization and Review, Journal of Consumer Marketing 13 (3): 27-42.25. Zeithaml, V.A. (1988), Consumer perceptions of price, quality, and value: a means-end model and synthesis of evidence, Journal of Marketing 52(3): 2-22.

CHAPTER-3 RESEARCH METHODOLOGY

3.1OBJECTIVES OF THE STUDY:

PRIMARY OBJECTIVE To know the brand awareness of Bata India Ltd. Among the people. To measure the Loyalty of the customers towards the Brand Bata. To know the popularity of the brand Bata among the consumers.

SECONDARY OBJECTIVES -

To find out the companys 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 Batas promotional activities? To find out drawbacks of Bata brand.

3.2 RESEARCH METHODOLOGY

Research is an endeavour to discover answers to intellectual and practical problems through the application of scientific method. Research is the systematic process of collecting and analyzing information (data) in order to increase our understanding of the phenomenon about which we are concerned or interested. It is an extensive survey of all available past studies relevant to the field of investigation. It gives us knowledge about what others have found out in the related field of study and how they have done so. A research methodology is the specification of methods and procedures for acquiring the information needed to structure or to solve problems. It is the overall operational pattern or frame work of the project that stipulates what information is to be collected from which sources, and by what procedures. If it is a good design it will ensure that the information obtained is relevant to the research problem and that it was collected by objective and economical procedures. A research design might be described as a series of advance decisions that, taken together, from a specific master plan of model for the conduct of the investigation. Although research designs may be classified by many criteria, the most useful one concerns the major purpose of the investigation.

Type of research- Exploratory research or Formulative research.

The research has been conducted within the data and information available to gain familiarity with the problem, to generate new ideas or to make a precise formulation of the problem. The current scenario is observed and an attempt has been done to relate the various variables.

The major purposes of exploratory studies are the identification of problems, the more precise formulation of problems (Including the identification of relevant variables), and the formulation of new alternative courses of action. An exploratory study is often the first in the series of projects that culminate in one concerned with the drawing of inferences that are used as the basis of management action. That is, an exploratory study is often used as an introductory phase of a larger study and results are used in developing specific techniques for the larger study. Secondary sources of information, as used in the section, are the rough equivalent of the Literature on the subject.

RESEARCH DESIGN:

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 Delhi and Gurgaon. Sampling Size- The sample has taken as 80 for collecting accurate information but received only 60 samples from the respondents, so 60 is the sample size taken for measuring the awareness and loyalty of Bata brand.

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. Secondary data was collected using internet and books.

METHOD OF DATA COLLECTION: As survey is best suited for descriptive research so the research conducted directly for individual respondents through questionnaire methods. The interview is structured where the questions asked in a sequence and prescribed manner. Therefore the received data is about the respondents awareness of Bata and loyalty towards Bata and there is lesser degree of inaccuracy in survey method.

SAMPLING DESIGN:

The below given questions about brand awareness and brand loyalty contains sampling-

Which single company comes to mind first in the shoe market? Which other companies come to mind?

Which company do you view as the leader in the shoe market?

Are you aware of BATAs offerings in the shoe market? If so, to what extent? Please list the types of services that you know BATA to offer in the shoe market.

What three words best describe BATAS position in the shoe market?

Overall, how satisfied are you with BATA shoes?

How likely are you to continue to choose/repurchase BATA shoes?

How likely are you to recommend BATA shoes to a friend/associate?

LIMITATIONS:

Brand awareness dimension was not found significant in the tested model.

Brand loyalty help the marketing researchers and marketing managers to understand the market.

These measures also help out to segment the market.

The measures help to know the consumption frequency.

Brand awareness measures the accessibility of the brand in memory.

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.

CHAPTER-4 DATA INTERPRETATION

ANALYSIS AND INTERPRETATION:

Question1- Are you familiar with Bata shoes?

FAMILIARITYRESPONSES

NEVER HEARD5

HEARD,NEVER BUY8

BUY OCCASIONALY26

BUY ON REGULAR BASIS21

TABLE 1: Familiarity with Bata shoes

.

Figure 1: Familiarity of Bata Brand

Interpretation- 43% of the customers buy Bata products occasionally, 35% customers buy on regular basis, and 13% customers have but never buy, 8% never heard.Question2- What attributes associated with Bata shoes?

AT TRIBUTESRESPONSES

STYLE9

DURABILITY28

C OMFORT17

PRICE10

OTHERS6

Table 2: Attributes associates Bata shoes

Figure 2: Attributes associates Bata Shoes

Interpretation- 40% customers associates durability for Bata products, 24% associates comfort, and 14% associates price and 13% associates style, 9 % associates others.

Question3- Loyalty of customers towards bata?

LOYAL CUSTOMERSRESPONSES

MORE THAN 20 YEARS13

BETWEEN 10-2 0YEARS19

BETWEEN 1-10YEARS22

NEVER USED6

Table 3: Loyalty of customers

10%22%

37%MOR E THAN 20 YEARS

BETW EEN 1020YEARS

32%

BETW EEN 110YEARS

NEVER USED

Figure 3: Loyalty of customers

Interpretation- 37% of the customers are using Bata products for 10 years, 32% of the customers are using for 20 years and 22 % of the customers are using for more than 20 years and 10 % customers they have never use d Bata products.

Question4- Suitable Shoe brand?

SUITABLE SHOE BRANDRESPONSES

BATA21

REEBOK19

ADDIDAS12

NIKE6

KHADIM S2

Table 4: Suitable shoe brand

Figure 4 : Suitable shoe brand

Interpretation- 35% of the customers are suitable with Bata, 32% customers are suitable with Reebok and 20% of the customers are suitable with Addidas, 10% customers are suitable with Nike, 3% customers are suitable with KhadimsQuestion5- Satisfaction level for sports wear?

SATISFACTION LEVEL FOR SPORTS WEARRESPONSES

FULLY SATISFIED19

SATISFIED14

NOT SATISFIED27

Table 5: Satisfaction level

32%

45%

23%

FULLY SATISFIED

SATISFIED

NOT SATIS FIED

Figure 5: Satisfaction level

Interpretation- 45% customers are not satisfied with Bata sports wear, 32% are fully satisfied and 23% are not at all satisfied with Bata s ports wear.

Question6- Variety of items and services while shopping in Bata stores?

VARIETY OF ITEMS & SERVICESRESPONSES

FULLY SATISFIED29

SATISFIED17

NOT SATISFIED14

Table 6: Variety in Bata stores

Figure 6: Variety in Bata stores

Interpretation- 48% customers are fully satisfied with the variety of items and services in Bata stores, 28% are satisfied and 23% are not satisfied.

Question7- Does the cost of Bata shoes affect purchasing choices?

COST AFFECTRESPONSES

MORE EXPESIVE19

LESS EXPENSIVE7

PAYABLE RANGE34

Table 7: Cost affect of Bata shoes

Figure 7: Cost affect of Bata shoes

Interpretation- 5 7% customers are satisfied with the cost of Bata product s, 32% customers feel they are more expensive and 12% feel the Bata products are less expensive.

Question8- Do Advertisements capture the best qualities of Bata products and services?

QUALITY OF ADVERTISEMENTSRESPONSES

VERY GOOD QUALITY7

GOOD QUALITY17

POOR QUALITY36

Table 8: Advertisements quality

Figure 8: Advertisements quality

Interpretation- 60% customers think the quality of advertisements for Bata products and services are poor, 28% think they are good, and 12% think they are very good.

Question9- What are the chances of you recommending Bata shoes to friends and relatives?

RECOMMENDING BATA SHOESRESPONSES

EXCELLENT6

VERY GOOD6

GOOD32

FAIR13

POOR3

Table 9: Recommending Bata shoes

Figure 9: Recommending Bata shoes

Interpretation- 53% customers will recommend that Bata shoes are good, 22% will recommend as they are fair, and 10% will recommend very good and excellent, 5% will recommend as poor.

Question10- Would you repurchase of Bata products from Bata stores?

REPURCHASE OF BATA SHOESRESPONSES

MORE THAN ONCE IN A YEAR25

OCASSIONALY16

VERY OFTEN11

RARELY8

Table10: Repurchase of Bata products

Figure 10: Repurchase of Bata products

Interpretation- 42% of the customers will repurchase more than once in an

year, 27% will repurchase occasionally, and 18% repurchase very often, 13%

repurchase rare.

Question11- What is the nature inside Bata showroom?

NATURE IN BATAHIGHLYSATISFIEDDISSATISFIED

SHOWROOMSATISFIED

COURTESY NATURE143511

FRIENDLY SALES291516

EXECUTIVE

CON GENIAL ENVIRONMENT252213

DISCOUNT AND OFFE R33198

Table 11: Nature in Bata show room

Figure 11: Nature in Bata showroom

Interpretation- Many of the respondent s are satisfied with courtesy nature in Bata showroom, some are highly satisfied with discounts and offer given by Bata, and many of them think the sales executive are not friendly.Question12- What is the impact on Bata Brand?

IMPACT ON BATAHIGHLYSATISFIEDDISSATISFIED

SATISFIED

PUBLIC RELATIONS3 3216

ADVERTISEM ENTS1 32324

SALES PROMOTION1 92912

Table 12: Impact on Bata brand

35

30

25

20PUBLIC R ELATIONS

ADVERTIS EMENTS15 SALES PR OMOTION

10

5

0

HIGHLY SATISFIEDSATISFIE DDISSATISFIED

Figure 12: Impact on Bata brand

Interpretation- Many of the respondent s are satisfied with the public relations of Bata, some of the respondents are satisfied with sales promotion and the customers are dissatisfied with the advertisements of Bata.

CHAPTER-5 FINDINGS AND SUGGESTIONS

5.1FINDINGS:

43% of the customers buy Bata products occasionally, 35% customers buy on regular basis, and 13% customers have but never buy, 8% never heard. 40% customers associates durability for Bata products, 24% associates comfort, and 14% associates price and 13% associates style, 9% associates others. 37% of the customers are using Bata products for 10 years, 32% of the customers are using for 20 years and 22% of the customers are using for more than 20 years and 10% customers they have never used Bata products. 35% of the customers are suitable with Bata, 32% customers are suitable with Reebok and 20% of the customers are suitable with Addidas, 10% customers are suitable with Nike, 3% customers are suitable with Khadims. 45% customers are not satisfied with Bata sports wear, 32% are fully satisfied and 23% are not at all satisfied with Bata sports wear. 48% customers are fully satisfied with the variety of items and services in Bata stores, 28% are satisfied and 23% are not satisfied. 57% customers are satisfied with the cost of Bata products, 32% customers feel they are more expensive and 12% feel the Bata products are less expensive. 60% customers think the quality of advertisements for Bata products and services are poor, 28% think they are good, and 12% think they are very good. 53% customers will recommend that Bata shoes are good, 22% will recommend as they are fair, and 10% will recommend very good and excellent, 5% will recommend as poor. 42% of the customers will repurchase more than once in a year, 27% will repurchase occasionally, and 18% repurchase very often, 13% repurchase rarely. 53% customers are not convinced with their advertisements to buy their products and 47% of the customers get attracted towards their products. 38% feel there is discounts and offer in Bata showroom, 23% feel there is a courtesy nature, and 20% feel the sales executives are friendly, 18% feel there is a congenial environment. 62% believe in public relations of Bata, 25% believe in sales promotion, and 13% believe in advertisements of Bata Brand. 5.2 SUGGESTIONS:

Give sales discount and free samples to influence more sales in the growing shoe market. Reduce the price level. More advertisement should be aired. Should build awareness among the potential customers. Bring more design, colour, and design combination to be competitive. To merge with the local companies and to expand more segmentation. Should come up with trendy, stylish footwear which can attract young generation. Should concentrate on sportswear. Bata should also look after their footwear durability and comfort to maintain good relations with their loyal customers. Company should engage in more marketing practices. Should open more retail outlets. Should be more customer centric and should develop its products according to the customer needs.

CHAPTER-6

CONCLUSION

CONCLUSION:

From the analysis of Bata Shoe Company India Ltd and the shoe industry we have identified that the shoe industry is growing and identified their main weakness is insufficient lack of development with the rapid changing market needs, insufficient promotional activities, and downward trend of quality.

On the other hand, distribution system and vertical integration are the strengths of Bata From strategic marketing viewpoint; we see that Bata is taking corrective steps in almost all the way.

In very few sides Bata has lacking. Based upon these facts recommended strategies would assist in more growth of Bata shoe company India Ltd. in among the upcoming fierce competition in the shoe industry.

It has been observed that the pattern of job performance and the quality of Bata product is not highly appreciated by the consumers. The entire ,Bata House, Gurgaon should improve their quality of footwear and also should come with some good sports wear as customers are not satisfied with Bata sports shoes. They should mainly concentrate on youngsters as now a days they want stylish and designable shoes and chappals. My survey reveals the facts which determine the mile stone achievement of the organization.

BIBLIOGRAPHY

BOOKS AND AUTHOR:-

BRAND MANAGEMENT BY KELVIN KLIEN

PAGES-67 TO 77

JOURNAL AND MAGAZINES:-

THE ECONOMICS TIMES COMPANY JOURNALS THE HINDU THE TIMES OF INDIA

WEBSITES:-

www.bataindia.com www.google.co.in www.hindubusinessline.com www.wikipedia.org

ANNEXURES

BATA INDIA LTD.

NAME:

Email ADRESS:

CONTACT NO.:

1)How familiar are you with BATA shoes?

Ive never heard of them

Ive heard of them, but never buy their products

I buy their products occasionally

I buy their products on a regular basis

2)Which of the following attributes do you associate with BATA shoes?

STYLEDURABILITYCOMFORTPRICEOTHERS

3) How long have been using BATA shoes?

4) Which shoe brand do you feel is most suited to your needs?

5) Do you think BATA serves the purpose of being a good brand, for Sports wear?

6) Do you think you find a variety of items and services in the BATA stores when shopping?

7) Does the cost of BATA shoes affect your purchasing choices?

8) Do you think our advertisements capture the best qualities of BATA products and Services ? If yes please specify.

9) How likely are you to recommend BATA shoes to a friend or relative? Would you say

the chances are ?

EXCELLENTVERY GOODGOODFAIRPOOR

10)How likely are you to repurchase products or services from BATA stores?

11) Which nature would you prefer in BATA showroom?

NATURE IN BATAHIGHLYSATISFIEDDISSATISFIED

SHOWROOMSATISFIED

COURTESY

NATURE

FRIENDLYSALES

EXECUTIVE

CONGENIAL

ENVIRONMENT

DISCOUNTAND

OFFER

12) What is your impact on BATA Brand?

IMPACT ON BATAHIGHLYSATISFIEDDISSATISFIED

BRANDSATISFIED

PUBLIC

RELATIONS

ADVERTISEMENTS

SALES PROMOTION