TABLE OF CONTENT

INTRODUCTION & HISTORY...................................................................................2BATA PAKISTAN........................................................................................................5OUR BRANDS..............................................................................................................6VISION STATEMENT ……………………………………………………………...17MISSION STATEMENT…………………………………………………………….17COMPANY OBJECTIVES.........................................................................................18PRODUCT MIX..........................................................................................................19

Shoe Categories........................................................................................................19PRODUCT MIX ANALYSIS......................................................................................20

Target market...........................................................................................................20Functional level strategy..........................................................................................20Product variations.....................................................................................................20Product Design.........................................................................................................21Product Features.......................................................................................................22Product Positioning..................................................................................................23

Field of Activities.........................................................................................................24SWOT Analysis...........................................................................................................25

Strengths...................................................................................................................25Weaknesses..............................................................................................................25Opportunities............................................................................................................26Threats......................................................................................................................26

Job description.............................................................................................................27Merchandising Department:.....................................................................................27

Recommendations........................................................................................................28Conclusion....................................................................................................................29Suggestions..................................................................................................................30Bibliography.................................................................................................................31

INTRODUCTION & HISTORY OF BATA

2

3

4

BATA PAKISTAN Bata Pakistan was established in 1942 when Pakistan came into being, it was ready to serve the nation. It was incorporated in Pakistan as Bata Shoe Company (Pakistan) Limited in 1951 and went public to become Bata Pakistan Limited in the year 1979.   Since its inception, the company has not only maintained a reputation of manufacturing high quality footwear for all the socioeconomic segments of the society but has also been designing shoes in accordance with the changing fashions and trends.   During the last year Bata produced over 17.2 million pairs and sold 16.9 out of them with the help of their large distribution network of 400 Retail Stores and Agencies, 13 Wholesale Depots, 23 Distributors and about 400 Registered Wholesale Dealers who are selling goods as independent retailers. In 2009 the company generated turnover of Rs.6.5, billon showed an increase of 26% against previous year.   The Company has an organized Export Department which is constantly engaged in exploring new export markets in order to earn the foreign exchange for the country. During the current year i.e. 2010, it is expected to export 1 million pairs of various styles of footwear to European and African countries.   Bata is a multinational company and has played a vital roll in the economic progress of Pakistan. It has transferred sophisticated technology and business skills to the country and provides direct and indirect employment to about 10,000 people. Bata also supports a large number of local manufacturers by buying raw materials from them.   As corporate responsible citizen Bata is actively fulfilling its responsibilities since when it’s started its business in the country. We are permanently patronizing many charitable organizations and helping them in the form of cash and free shoes. The renowned names on our list are S. O. S Children Village, Shoukat Khanam Cancer Hospital and Rising Sun Institute. Besides these we have also running many welfare schemes for our own employees.   Bata has always been the market leader and in order to maintain its leadership it has invested millions of rupees in updating its systems and equipment during the last few years. This will enable the company to expand, modernize and develop its operations and in the process provide additional employment opportunities.

Bata the market leader is well equipped to cater the customer’s demands and to meet future challenges

5

OUR BRANDS

6

7

8

9

10

11

12

13

14

15

16

Vision STATEMENT

"To grow as a dynamic, innovative and market driven domestic manufacturer and distributor, with footwear as our

core business, while maintaining a commitment to the country, culture and environment in which we operate.”

MISSION STATEMENT

“To be successful as the most dynamic, flexible and market responsive organization, with footwear as its core business.”

17

COMPANY’S OBJECTIVES

Bata Pakistan Objectives are listed below:

To be a market leader

To have a good share in the market.

To satisfy the customers by providing latest styles and designs.

To give the customers better service and guarantee facilities.

To provide shoes of better quality suitable to all sizes and have lowest prices than ever before.

To be ahead of its competitors.

To make optimum use of its physical and natural resources to increase productivity.

18

19

PRODUCT MIX

Bata Pakistan Ltd. has been trend setter in shoe wear fashion in Pakistan. Diverse

range of its boots is well known for the latest styles and designs. The company is

constantly introducing fashionable boot wear to increase its customer base and to be

head of competitors.

Shoe categories:

Gents

Ladies

Youth

Boys

Girls

Children

20

PRODUCT MIX ANALYSIS

TARGET MARKET

Bata is basically a mass marketer, its products caters needs of every consumer.

FUNCTIONAL LEVEL STRATEGY

In production Department Company is using strategy of “ experience curve” so it’s

providing good quality at reasonable prices.

PRODUCT VARIATIONS

Bata introduces four collections every year, introducing new design every time.

Q1 (Jan-Mar)Q2 (Apr-Jun )Q3 (July-Sep)Q4 (Oct-Dec)

21

PRODUCT DESIGN

One of the hall marks of Bata foot wear is the individuality and uniqueness in the

designs offer. In today’s competitive environment, innovation in product design is

very crucial to stay in market.

Bata has realized this fact and has a very dynamic design development department. It

is due to the efforts of this department, that Bata offers unique items four times a year.

Bata keeps a close eye on competitors and international design. They follow reverse

engineering technique to offer better design than their competitors.

Bata follows competitive strategy of product development. The company is

introducing new designs and styles in the market to increase its customer base and to

be ahead of competitors.

22

PRODUCT FEATURES

Durability:

Bata’s shoes are recognized as most durable. They always complete their expected

operating life. That’s why Bata have won loyal customers.

Reliability:

Bata maintains quality of the shoes in every case because he realizes that now the

customers go for the quality products.

Conformance Quality:

Bata shoes have high conformance quality. Buyers get the identical design, quality

and price at all outlets of Bata. It plays a very important role in gaining confidence

of buyers.

Performance Quality:

All the Bata brands are made to provide primary shoe features in full as well as

something extra. They are comfortable, stylish, and smooth and adds to one’s

personality.

23

PRODUCT POSITIONING

Product positioning means developing the image that a product projects in relation to

competitive products. Managements ability to bring attention to a product and to

differentiate it in a favorable way from similar products goes a long a way toward

determining that’s products revenue

Positioning in relation to competitors:

The competitors of the Bata in Pakistan are following.

1. Servis

2. Borjan

3. Hush puppies

4. Root

5. English shoes

6. Nike

7. Slazenger

8. Starlet

The Bata main competitors are Servis and starlet. however Bata, starlet and Servis all

have to face tough competition from the local manufacturers like Ehsan, Milli, and

Stylo. Bata, starlet and Servis are the only three merchandise unit in Pakistan so they

have give sales tax 15%.On the other hand cottage industry is exempted from the this

tax in spite of the fact that cottage industry has huge market share. So due to this wide

spread evasion in organized sector, the product of Bata,starlet and Servis are costly as

compare to local product.

24

FIELD OF ACTIVITIES

Bata Shoes – Field of Activities

The Bata Shoe Organizations which deal in Footwear are mainly categorized and

explained under following field of activities and operations:-

1- Factory Outlets Department (FOL)2- Retail3- Wholesale4- International Business5- Franchising6- Corporate Sales7- Foreign Manufacturing contracts8- Exports

25

SWOT ANALYSIS

Following are the strengths, weaknesses, opportunities and threats which I personally

observe in the company.

STRENGTHS

Bata has its own retail outlets throughout the country.

More than 100 years experience

It has largest shoes manufacturing company in Pakistan.

The distribution network of company is fey strong.

Friendly atmosphere in the organization.

Less expensive as compared to the imported shoes.

Quality of the shoes is very good.

Outlets are available in all markets and bazaars.

Single competitor (Servis).

Good image of the company in the mind of customers.

Geographical coverage

WEAKNESSES

High price products as perceived by the consumers.

No discount policy.

High operating cost.

Weak promotional activities.

Poor working hours in production departments.

Female market penetration is weak

Low aspiration value in high income group

Don Carlos communication seems to be static. Need to find ways to build on

the strong equity of the brand.

26

.

OPPORTUNITIES

There is room for Bata to open more outlets in the country.

Company can produce low price products in order to capture the lower class,

thus can increase its sales.

Company can increase its sales by improving the quality of products in order

to back out the imported shoes.

Company can increase its sales through continues innovation (by introducing

new designs).

Penetration in the female segment

Improve shopping experience at retail outlets

Major portion of market untapped

THREATS

Bata has threat from its domestic rivals like Servis.

Devaluation of rupee and economic factors are also a very fearful threat for

Bata. It increases the prices of raw material imported by company.

Govt. has imposed sales tax, which in turns increased the cost of products.

The cost of electricity is increasing day by day, which in result increase the

cost of production.

Aggressive marketing tactics by other shoe manufacturers.

27

JOB DESCRIPTION

MERCHANDISING DEPARTMENT:

Nowadays I am working Merchandising department as Merchandiser and my responsibilities are

To maintain a distribution system which will ensure the right shoes in the right store at the right time.To ensure proper planning and setting of standards achieve maximum sale with minimum of stock.To assist the buyer/ assistant buyers in certain phases of the buying processVisit stores on a fortnightly basis to assess the value of our product line and needs and to analyze the competition.To establish and maintain constant communication with store managers.

28

RECOMMENDATIONS

Bata should remain stick to there adopted high standards and must not devalue its brand by cutting down the cost of production which would finally lead to the diminishing of her product value and quality. Due to this practice, it would maintain the reliability of Bata brands and would get the right pace of growth within next one or two business years. It could be said with confidence as the standard customers are having bad experience of China products, specifically in footwear industry where china is still not much specialized Bata still maintain the quality of it’s product in the mind of the customers and when the customer will to buy some quality they always went for the shoes which are Bata branded.

Bata Brands are always been at monopoly when its come to quality and standards.

One thing Bata should come up with is the better market promotional techniques to attract new customers. Show the people what advantage you have over other brands because many chine’s companies are making copies of Bata products. What Bata has to do is white wash those products from the market by bringing the awareness to her customers.

29

CONCLUSION

Bata Pakistan Ltd. is Pakistan’s premier retailer that has set new record standards and created new benchmarks in the retail industry. With its world-class retail systems, ardently dynamic approach to business and highly energetic team.

The Management of Bata is very dynamic and quite aggressive towards setting and getting high goals. The Organizational structure and atmosphere is unique of its kind in the region. It is claimed by the management that the working environment of Bata can be compared with any Rated “A” European organization. The work is being properly managed by well organized departments and people of each department perform team work as a team member. Normally the job is assigned to an employee and he may have the liberty to perform his task in whichever style but keeping in view the task departments requirements and company practices. The delegation of power and authority to the all levels of workforce, from top to bottom, explains and confirms the success of democratic management style in Bata. As per the observation and comments, the Growth of Bata is highly backed up by its workforce. This organization has always been focusing on her Human Resource. They treat them well with lots of on job and after service benefits. Due to such Social Responsibilities, Bata prouds to have one of the most satisfied Human Resource in the country. In the same way, recruiting and grooming the well educated, skilled and professional Human Resource is being treated as a high achievements of the Bata by its management.

30

SUGGESTIONS

The company has to introduce new categories to compete his competitors.

In Ladies Footwear’s there needs lot of improvements in designs

The company should go for Backward and Forward Integration.

Company can use his name in Garments Sector .So Company has to develop Garments Retail Outlets.

31

BIBLIOGRAPHY

– http://www.bata.pk/

– http://www.bata.com/

– http://www.paksearch.com/Annual/Annual00/BATA1.htm

– http://www.bata.pk/data/files/en_PK/documents/Bata%20Annual

%20Report%202009.pdf

32