BATA PAKISTAN MARKETING REPORT

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BATA PAKISTAN Marketing Issues of Pakistan

MANZOOR AHMED MEMON

BBA (FINAL YEAR)

SUKKUR INSTITUTE OF BUSINESS

ADMINISTRATION

ANALYSIS OF BATA PAKISTAN Page 2

EXECUTIVE SUMMARY

The organization BATA shoe was established in the year of 1894, on August 24 by Thomas Bata

at Zelin Czechoslovakia. BATA Pakistan started the business in Batapur from 1942, The

registered office of BATA Pakistan is in Lahore. There are more than 400 outlets of BATA

Pakistan in the whole country.

BATA has brand image in Pakistan but currently they are facing so many problems.

BATA is facing problems from their competitors and new entrants in the market, The strength of

BATA Pakistan is that they have strong brand image because of their maturity, they are

financially strong. But they are also facing certain problems as well like they are charging price

more than the quality they are giving, there is lack of innovation in their product, and lack of

variety as well. Another issue that is very much important to focus is Promotion, although BATA

is promoting well in Digital media but they are lacking in social media promotion, they have not

updated their face book page since 2010-11 in contrast when we look at their competitors they

are promoting heavily on social media like Servis.

BATA Pakistan is also facing some other issues like Political Instability, High

electricity cost, law and order situation of the country is very bad that’s why they are also

facing problems from these areas as well, They are also facing problems because of changes in

the life style of people of Pakistan, they are now preferring fashionable and trendy products but

BATA is providing products with old design. That’s why other competitors and new entrants are

grabbing market share from BATA Pakistan.

As in this document it is clear that BATA Pakistan is facing many problems, so for their

better performance we have recommended them also, we recommended that BATA Pakistan

should start an innovation department, which only focus on the innovating products and change

their strategies with the changing life style of customers. As we highlighted the Pricing issue of

BATA Pakistan that the Price they are charging is not compatible with the quality they are

providing for that they should decrease prices or give high quality products at the same price.

New designs of BATA are rarely available in some cities they are available in Metropolitan

cities, so BATA should provide new products in all cities of Pakistan, as customers will get new

designs of BATA and will not get frustrated by seeing same designs every time.

We hope BATA Pakistan will change their strategies and grab the market share again

and will sustain their Brand image as well.


Introduction:

Bata Ltd established in 1894 by Thomas Bata. The company is headed by a third era of the Bata

family with operations in 68 nations. Bata owns more than 4,700 retail stores and 46 preparation

offices.

BATA Pakistan started the business in Batapur from 1942, The registered office of BATA

Pakistan is in Lahore and the factories are in Maraka, Multan road and Lahore and the Liaison

office at Mai kolachi bypass, Karachi. BATA Pakistan is also listed in Karachi and Lahore Stock

exchange.

Bata Pakistan is serving its esteemed clients through a solid retail system comprising of more

than 400 retail outlets, 467 enlisted wholesale merchants, 13 wholesale terminals, 28 wholesale

wholesalers and 41 DSP wholesale establishments across the nation.

Being a multinational organization Bata Pakistan has assumed a key part in the budgetary

advancement of Pakistan. It has presented refined innovation and business abilities to the nation

and gave immediate and roundabout work to something like 10,000 individuals. Alongside its

own particular assembling limit Bata Pakistan is likewise outsourcing its items nationally and

internationally to meet the requests of its esteemed clients.

As the Corporate social obligation is a vital a piece of each business and Bata Pakistan fulfills its

CSR by belittling different beneficent organizations and likewise join in rehabilitation of public

opinion throughout the common debacles.

In addition Bata Pakistan is likewise working a worldwide program under the name of Bata

Children program, which means to make a brighter future for the youngsters of the group in

which we work. Under this system Bata Pakistan encourages and upholds under privileged

youngsters by giving shoes, gifts and likewise organizing distinctive solid exercises for them

which include values in their lives.

Bata the business pioneer is generally prepared to provide food the client's requests and to meet

future tests.

Vision

To grow as 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.


STRENGTHS:

Brand Image

Reasonable quality at lower reasonable price

Footwear for the entire family

Financially Strong

Conveniently accessible outlets in various parts of the country

Provide training for managers and employees

Nationwide retail network

WEAKNESSES

No continuity of leadership

No proper planning regarding Advertisement

Low variety in Fashionable shoes

About 5% decrease in net sales in some last previous

years

OPPORTUNITIES

E- Commerce

Acquired Partnership with small players

Entering new segments of Markets

Capturing Market where no other potential competitor

exists

Innovative Products

New mediums for advertisements

THREATS

Customer Dissatisfaction

Price wars with competitors

Competitors

Political Instability

Economic Threat

Changing in consumer preferences.

Mission “To be successful as the most dynamic, flexible and market responsive organization, with

footwear as its core business”

SWOT ANALYSIS OF BATA PAKISTAN


PESTLE ANALYSIS OF BATA PAKISTAN

Political instability

duties on export and import

high electricity cost

law and order issues

Economic crisis

higher energy prices

inflation interest rate and other monetary policies

low purchasing power of customers

life style changes

demographic changes

fashion changes

new inventions and developments

changes in information technology

tax policies

trade regulations

law and order situations

environmental regulations and protection

huge competition


7 P’s of BATA PAKISTAN

PRODUCT:

Bata is offering very less variety in their products.

They are offering products in old design, not focusing on trendy shoes etc.

Mostly focus on the school shoes.

No research and development.

Very less fashionable and stylish shoes

Not providing innovative products.

Bata is operating since 1942 but still they are focusing on the old designs and they are

not coming with the new designs, also there is a product issue that there is very less

Research and Development, as we know consumer’s preference is changing toward

the new innovative and trendy shoes but still bata is stuck in their old strategy. Now a

days people are preferring stylish and fashionable shoes, but Bata is still providing the

shoes with old designs, it means they are not changing with consumer preferences.

PRICE:

Price of Bata is not too much high, as they are targeting lower and middle class

people, but the valued they are providing is not compatible with price, at the same price

Servis shoes can be purchased that are so attractive and stylish.

PROMOTION:

When we compare the Promotional activities of BATA on Digital Media so it is

seen that they are promoting their product very less as compare to their competitors like SERVIS

Also Bata is lacking in the social media promotion which is very much threatening, when


I visit their page, what I saw that there was no any updated since Dec, 2010

Because of this their followers and likers are very less on FB, in contrast with BATA,

when we see the FB page, they update their page on hourly basis this is the reason there are so

many followers and likers of SERVIS on FB.

It can be seen that how SERVIS is promoting on social media, and what about BATA, Sorry

BATA shoes…

PLACEMENT

There are 400-450 outlets of Bata shoes, but most of them are in Urban area and big cities

of Pakistan, in so many outlets there is issue of availability of different products, like Sukkur,

when I went to the outlet of BATA in Sukkur, I found no variety that is found in the big cities

like Karachi, Lahore etc. There is an only school shoe that we can say are available in every

outlet, but sports shoes and other shoes are only available in certain cities of Pakistan.

PHYSICAL EVIDENCES:

Whenever we go in Bata retail stores mostly we found maximum 5 seats for customers.

Especially during Eid day’s people were rushing in stores. So, it does not feel comfort to

customers. In many stores there is no any separate room or portion for females.


PEOPLE:

The people who work on retail stores, they also do not behave equally with all customers. They

behave politely with upper middle class and they do not behave in good manner with lower class

and especially with villagers. All customers should be treated equally.

Process: They are following same traditional process from 20 years. Bata Pakistan does not

invest more in research and development. Resultantly no innovation takes place.

RECOMMENDATIONS AND SUGGESTIONS

Bata should start an innovation department that only work for the new designs of shoes

sandals, kid’s shoes, sport shoes that customer need now a day’s to resolve the issue of

designing and meet the customer’s satisfaction. To identify customers need Bata should

increase research and development.

Bata charge higher price than its quality, Bata should make their process more efficient to

reduce cost and charge low and give benefits to their customers, no doubt bata is famous

for comfortable shoes but somehow they are lacking now and people wants both comfort

plus stylish and also in affordable price.

Bata should improve the leather quality to maintain their reputation as offer comfortable

shoes.

Due to lack of availability of all brands of Bata on a single outlet, this is also

disappointing customers because customer wants new design products at least Bata should

work on it and make available all its brands that will increase choices because more

products increase more chances to be sell out.

Marketing of products in very much important in today’s competitive world. Bata should

increase their marketing budget and new marketing champion with new products, Bata can

use digital marketing through social media Bata can get more market share because social

media impacts a lot on customers, Bata should start online store and sell online like other

international brands.

Employee who worked on outlets should be trained how to deal with customers and guide

the customers in right way that what they exactly want.

Bata should make new strategy and new process to compete with their competitors

because this is not time to go still with traditional methods as time changes process should

be change


CONCLUSION:

BATA Pakistan is a mature company and currently facing problems internally as well as

externally, internal problems are from their strategies, as they are focusing on traditional designs

of footwear and not focusing on innovative and trendy shoes, they are not coming with variety,

also the price they are charging is not compatible with quality they are giving, BATA Pakistan is

also facing problem from their cobblers and new entrants who are using their products under

their own brand, BATA Pakistan is also not focusing on PROMOTION, as it was highlighted in

this document that Face book page is not updated from 2010, so how can they attract customers

on the other hand their competitors are Promoting heavily.

External problems that BATA is facing is from Competitors and new entrants in the

market, the competitors of BATA Pakistan are focusing on innovative products, fashionable

products this is the reason BATA is losing their market shares, also new entrants became

problem for BATA.

What BATA should do is a critical Question, but the recommendations we have provided

can be beneficial for BATA Pakistan. Like they have to start a innovative department that only

work for the innovation of new designs and styles, and respond to customers changing

preferences. They should decrease prices or increase the quality of their product because they are

providing low quality shoes at the cost similar to other competitors even more than their prices.

BATA Pakistan should promote more and should include heavy promotion on social media in

their promotion strategy.

Good Luck BATA Pakistan for their Future Business.