abhi clg

BATA VS LIBERTY:

BATA VS LIBERTY Abhishek Kumar Raghav Rajoria Sumit Kumar Nikhil Sangwan Swetabh kumar

Slide 2:

Footwear Industry

INDIAN FOOTWEAR INDUSTRY:

INDIAN FOOTWEAR INDUSTRY The Indian footwear retail market is expected to grow at a CAGR of over 20% for the period spanning from 2008 to 2011. Footwear is expected to comprise about 60% of the total leather exports by 2011 from over 38% in 2006-07. Presently, the Indian footwear market is dominated by Men's footwear market that accounts for nearly 58% of the total Indian footwear retail market. By products, the Indian footwear market is dominated by casual footwear market that makes up for nearly two-third of the total footwear retail market.

Bata Shoe Organization:

Bata Shoe Organization Bata Industrials Worldwide Bata Industrials is a specialized division of the World’s largest shoe manufacturer: the Bata Shoe Organization (BSO) Today, Bata Industrials is one of world’s largest manufacturer & marketer of Safety footwear The company headquarters is located in Best, the Netherlands. Bata Industrials has operations and production facilities in most of the Countries worldwide.

Brand Description:

Brand Description Bata is one of the world leading footwear retailer and manufacturer with operations across 5 continents managed by 4 regional meaningful business units. With 1250 stores across the country, it also has the widest retail network.. Bata, over the decades, used the ‘ current knowledge

95 Paise Price Tags :

95 Paise Price Tags It was a strategy to begin sales talk with buyers curious about price like Rs 299.95. It would automatically create interest in the product. And from there salesmen can start their talk. The Bata price also had a psychological impact on the prospective buyers as it fell short of an amount that might have looked like a high price. The price tag was devised to communicate to customers that Bata values even their five paise.

Bata Overview:

Bata Overview Market segment low to medium priced footwear for the common person across the globe Local Strategy Bata runs semi-autonomous companies targeted at the low to medium end of the scale. Marketing Approach Bata clusters countries geographically into groups; the expatriate would build regional specialization & training activities would be more relevant on a regional basis for similar counties International strategy Bata follows a multi domestic strategy. It stands for low integration across country units & high local responsiveness

Bata: Improving Market Share:

Bata: Improving Market Share Bata today… Serves 1 million customers per day Employs more than 40,000 people Operates 5000 retail stores Manages a retail presence in over 50 countries Runs 40 production facilities across 26 countries

Slide 10:

Bata’s Offerings

Marketing channels of Bata:

Marketing channels of Bata Company operated retail outlet Dealer network Direct marketing to the customers

History :

History Established in the year 1954 by Mr. D P Gupta, Mr. P D Gupta and Mr. R K Bansal Liberty Shoes Ltd. is a leading leather shoes brand and is engaged in the manufacturing, supplying and exporting of the same. It is the only Indian leather shoe brand that occupies fifth ranking among the top shoes manufacturing companies in the world

Liberty-Quality Footwear:

Liberty-Quality Footwear Liberty has been awarded several times by prestigious awards such as: 2005 – 2006 Export Award Golden Peacock Innovation Award in the year 2005&2007 It has a patented technology " HUMANTECH " . SAP was used first time in Indian footwear Industry by “Liberty”.

Liberty-Quality Footwear:

Liberty-Quality Footwear Liberty has an extensive distribution channel which has enabled them to develop a firm grip over the market. 02 Overseas Offices 14 Branch Offices 20 Overseas Showrooms 300 Liberty Exclusive Distributors 375 Retail Stores (10 outside India)

Marketing Strategy:

Marketing Strategy The company is broadening their product range from need based shoes to lifestyle shoes. Revolutions’ strategy is to target women and children to increase footfalls. Apart from having presence in malls, Revolutions is also expanding its reach through the Shop in Shop concept. In September 2005, Liberty Shoes and Pantaloon Retail entered in to a joint venture for the business of footwear retailing . .

Footwear:

Footwear

Slide 18:

Sales through different channels of distribution

PRICING STRATEGY:

PRICING STRATEGY Liberty’s strategy is to scale up in all directions, i.e.to widen customer base . Liberty wants to create foothold in the domestic and export market. With the implementation of VAT at a flat rate of 12%. Another interesting aspect is the company's change in focus from men's shoes to concentrating on shoes for the entire family.

Slide 20:

SCALING IN ALL DIRECTIONS

COMPANIES TARGETING THE CONSUMERS BASED ON INCOME PER ANNUM:

COMPANIES TARGETING THE CONSUMERS BASED ON INCOME PER ANNUM BATA, ACTION, LIBERTY, NIKE, ADIDAS, RELAXO LOWER MIDDLE CLASS UPPER MIDDLE CLASS RICH CLASS BATA, ACTION, RELAXO LOWER INCOME GROUP ACTION, LIBERTY, NIKE, ADIDAS PUMA, NIKE ADIDAS

COMPARISON OF COMPANIES:

COMPARISON OF COMPANIES COMPANIES AVERAGE GROWTH RATE (2005 – 2008) NIKE 10.7 % ADIDAS 22.46 % BATA 7.8 % LIBERTY 11.16 %

COMPARISON OF THE COMPANIES (PORTER’S MODEL):

COMPARISON OF THE COMPANIES (PORTER’S MODEL) BASIS OF COMPARISON NIKE ADIDAS RELAXO ACTION BATA LIBERTY BARRIERS TO ENTRY ABSENT ABSENT ABSENT ABSENT ABSENT ABSENT BARGANING POWER OF BUYERS LOW LOW HIGH HIGH HIGH HIGH BARGAINPOWER OF SUPPLIER LOW LOW HIGH HIGH HIGH HIGH

Slide 25:

Approx 99, 800 This patented pair costs £440 (approx Rs. 31,300) This one costs a mere £465.00 (approx Rs. 33,000)

THE MOST EXPENSIVE SHOES:

THE MOST EXPENSIVE SHOES THE CINDERELLA SLIPPERS How much could a pair of shoes cost? Well, the world's most expensive pair of women's shoes costs a cool $2 million! The one-of-a-kind 4½-inch stiletto sandals are studded with 565 platinum-set Kwiat diamonds (which include 55 carats of clear diamonds and one big 5-carat stone).

Slide 27:

THANK YOU