A REPORT ON THE STUDY ON

3C REPORT OF
BATA INDIA LIMITED

By:
JOYSREE PAUL
PROGRAM- MBA (GENERAL)
BATCH-2019-20
ID No-19IUT0160007
Date of Submission-11th April, 2020

The ICFAI UNIVERSITY TRIPURA

A REPORT ON THE STUDY ON
3C REPORT OF
BATA INDIA LIMITED

Submitted By:
JOYSREE PAUL
Program-MBA (GENERAL)
ID No-19IUT0160007
Batch-2019-20
Date of Submission-11th April, 2020

The ICFAI UNIVERSITY TRIPURA

CONTENTS:
SL NO TITLE PAGE NO

1. 3C’s Model 4-10

2. SWOT Analysis 11-13

3. References 14
3C’s Model (3C Analysis Business Model):
 Company:

Overview:
Bata India is the largest retailer and leading manufacturer of footwear in India and is a part of
the Bata Shoe Organization. The Company also operates a large non retail distribution network
through its urban wholesale division and caters to millions of customers through over 30,000 dealers.

Company Profile:
Bata India is the largest retailer and leading manufacturer of footwear in India and is a part of the Bata
Shoe Organization.
 
Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up initially as a
small operation in Konnagar (near Calcutta) in 1932. In January 1934, the foundation stone for the
first building of Bata’s operation - now called the Bata. In the years that followed, the overall site was
doubled in area. This township is popularly known as Batanagar. It was also the first manufacturing
facility in the Indian shoe industry to receive the ISO: 9001 certification.
 
The Company went public in 1973 when it changed its name to Bata India Limited. Today, Bata India
has established itself as India’s largest footwear retailer. Its retail network of over 1375 stores gives it
a reach / coverage that no other footwear company can match. The stores are present in good
locations and can be found in all the metros, mini-metros and towns
 
Bata’s smart looking new stores supported by a range of better quality products are aimed at offering
a superior shopping experience to its customers.
 
The Company also operates a large non retail distribution network through its urban wholesale
division and caters to millions of customers through over 30,000 dealers.

History:
Bata India Ltd is the largest footwear retailer and the leader in the footwear industry in India. The
company is engaged in the business of manufacturing and trading of footwear and accessories
through their retail and wholesale network. Their products include leather footwear rubber/canvas
footwear and plastic footwear. They are having their production facilities at Batanagar in West Bengal
Patna and Hathidah in Bihar Faridabad in Haryana Bangalore in Karnataka and Hosur in Tamilnadu.
Their wholly owned subsidiaries include Bata Properties Ltd Coastal Commercial & Exim Ltd. and
Way Finders Brands Limited.Bata India Ltd was incorporated in the year 1931 as Bata Shoe
Company Pvt Ltd in Konngar West Bengal which was then shifted to Batanagar. Batanagar was the
first manufacturing facility in the Indian shoe industry to receive the ISO 9001 certification. The
company went public in 1973. They changed their name to Bata India Ltd. Over the years the
company has established a leadership position in the footwear industry and is easily the most trusted
name in branded footwear.The company has entered into an agreement with Bata Ltd of Toronto
Canada for supply of technical know-how and services such as Footwear technology and design
brand development product development retailing and information systems for a period of ten years
from January 1 2001.The company bagged the Retailer of the year award for the year 2006 in the
footwear category as a part of the Reid and Taylor Award for Retail Excellence which was presented
during the Indian Retail Summit 2006. They received the country's most coveted Retail Award at the
4th Images Retail Awards (IRA) 2007.The company was honoured with Most Admired Brand of the
year 2006-07 in Footwear category. They were rated as one of the Top 10 super brands in India and
awarded Super Brands Award on April 12 2007. In February 21 2008 they were given AMITY
Corporate Excellence Award 2008. This award was given for Bata's excellent performance and retail
growth during 2007.The company entered into a joint development agreement with Calcutta
Metropolitan Group Ltd for developing around 262 acres of land in Batanagar. The company formed a
special purpose vehicle called Riverbank Holdings Pvt Ltd. The development of 262 acres was split
into two parts IT SEZ for 25 acres developed by Riverbank Holdings Pvt Ltd and the remaining 237
acres will be done by the new company Riverbank Developers Pvt Ltd.In the year 2009 the company
opened 69 new Bata stores which are all in large format with an average of over 3000 square feet.
They also renovated 40 existing stores and closed down 73 stores which were in small format and
unviable. In the year 2010 the company won the 'Consumer Awards 2010' as 'India's Most Preferred
Retailer' given by CNBC Awaaz. The company opened 108 new large format stores across all major
towns in India. Bata India renewed its Technical Collaboration Agreement with Global Footwear
Services Pte. Ltd. Singapore (GFS) with effect from 1 January 2011 for a period of ten years. In terms
of the said Technical Collaboration Agreement Bata India receives guidance training of personnel and
services from GFS in connection with research & development marketing brand development
footwear technology testing & quality control store location layout & design environment health &
safety risk & insurance management etc. Recognizing needs of the young consumers Bata India
created new retail concept - Footin in the year 2012. It is a new business model with a different
approach to cater to the young customers who are style conscious and trend-savvy shoppers and
need quality merchandise at affordable price.Bata India changed the financial year from January-
December to April-March and extended the financial year to 31 March 2015 covering a period of
fifteen months. During the period under review due to certain unexpected problems with the
implementation of new supply chain IT systems the retail stores of the company could not be supplied
with adequate stocks of footwear and accessories. As a result the company's performance for the
fourth and fifth quarter in 2014-15 was adversely affected. In order to improve volume and profitability
the company took various steps during the period under review i.e. initiatives to achieve same store
growth investment behind new channels and stores cost control and manpower rationalization. During
the period under review Bata India continued its modernization plans at its Manufacturing Units at
Batanagar - West Bengal Bataganj - Bihar and Southcan - Karnataka. The modernization plans
implemented in these Manufacturing Units have improved quality of the products and also increased
productivity.During the fifteen month period ended 31 March 2015 Bata India opened 159 new retail
stores across India. The new stores are larger in size and are based on global design making them
look complete and enticing with adequate space to display the products. The year 2014-15 was a
milestone year for Bata India's premium footwear brand Hush Puppies as it completed 20 years of its
existence in India. During the period under review Hush Puppies endeavoured to re-position itself as a
new International Premium Lifestyle Casual Footwear brand.During the period under review Bata
India further strengthened its customer care division. Following a successful pilot a customer loyalty
program viz. 'The Bata Club' has been introduced at major metro cities.During the period under review
Bata India entered into Long Term Agreements with several Trade Unions.As mutually agreed inter
alia between Riverbank Developers Private Limited (RDPL) and Bata India vide New Development
Agreement dated 28 April 2010 read with Addendum Agreement dated 5 December 2013 Bata India
received approx. 136955 sq. ft. of constructed space in the Integrated Township Project at Batanagar
West Bengal during the 15 month period ended 31 March 2015.Bata India formed a new wholly
owned subsidiary viz. Way Finders Brands Limited on 26 December 2014. Bata India had to
overcome the unexpected challenges in implementation of new supply chain IT system which led to
disruption and delay in supply of footwear from the factories and warehouses to the retail stores
during the beginning of the financial year 2015-16 impacting the volume offootwear sold and also loss
of market share. During the year under review the company took several corrective measures in order
to overcome such challenges including focus on same store growth replenishment of stock in retail
stores based on store requirement/sales liquidating inventory level through various schemes and also
cost reduction initiatives. As a result the company started registering volume growth from the third
quarter of the financial year 2015-16. In 2015-16 Bata India introduced various new designs of
footwear which are contemporary stylish and also affordable. Modernization of the factories and
manufacturing processes of the company continued during the year under review. During the year
under review Bata India opened 26 new retail stores across India. The new stores are larger in size
and are based on global design making them look complete and enticing with adequate space to
display the products. The company's online business grew well during the year under review. The
company sold more than 3.8 lacs pairs of footwear through online channels.During the year under
review Bata India's e-commerce division mainly focused on increasing its customer database by
reaching out to new set of target audience and also establishing successful association with many
reputed companies and banks e.g. HDFC Bank Standard Chartered Bank State Bank of India
Deutsche Bank Samsung SpiceJet Airlines etc. Such alliances helped the company increase its brand
awareness and customer database. The company's products continued to be sold through its
partners' websites including Amazon Myntra Jabong Flipkart etc.The year 2015-16 was a milestone
year for the company's international premium brand Hush Puppies as the company sold over a million
pair of the brand in the year 2015 itself. During the year under review Hush Puppies embarked on a
journey of re-positioning itself as an International Premium Lifestyle Casual Footwear brand.During
the year under review Bata India introduced its customer loyalty program viz. `The Bata Club' in more
than 800 retail stores across 47 cities in India. These Club members are communicated on priority
about various new marketing offers and promotions as and when planned by the company.During the
year under review Bata India strengthened its urban wholesale business monitoring team and efforts
are being made to increase its market share in the wholesale footwear business.Pursuant to approval
of the shareholders obtained at the Eighty Second Annual General Meeting Bata India sub-divided the
face value of its equity shares of Rs. 10/- each fully paid-up into two equity shares of Rs. 5/- each fully
paid-up. The company had fixed 8 October 2015 as the Record Date for the purpose of ascertaining
the eligible shareholders for receiving the aforesaid sub-divided equity shares.During the year under
review Bata India amicably settled its protracted litigations with Relaxo Footwear Limited relating to
`SPARX' Trademark. Necessary consent terms have been filed with the appropriate Trademarks
Authorities and before the Delhi High Court. As mutually agreed inter alia between Riverbank
Developers Private Limited (RDPL) and Bata India vide New Development Agreement dated 28 April
2010 read with Addendum Agreement dated 5 December 2013 Bata India took possession of the
remaining 195075 sq. ft. of constructed space in the Integrated Township Project at Batanagar West
Bengal during the year under review. Accordingly RDPL's obligation to handover 332030 sq. ft. of
constructed space to Bata India has been completed.During the year under review Bata India entered
into long term agreements with its Workers' Unions at its manufacturing units. During the year your
company successfully negotiated Long Term Settlements with the Workers' Union at Bataganj and
with the Shop Employees' Union.Bata India incurred capital expenditure amounting to Rs.794.41
million in 2015-16 as compared to Rs.1538.77 million during the fifteen month period ended 31 March
2015.During the financial year ended 31 March 2017 Bata India endeavored to maintain its stature as
the leading footwear brand of choice with an added focus to tap the fashion conscious youth working
women and children through introduction of newer and trendier styles of footwear and has also
launched premium collections of footwear for men and women. During the year under review the
company opened 100 new retail stores and 23 franchised stores across India. These specious new
stores are located in untapped and developing markets of the Country and are based on global design
making them look enticing with contemporary display of the products.The company's online business
registered good growth during the year under review. The company sold more than 6.3 lacs pairs of
footwear through online channels during the year. The year 2016-17 saw various new initiatives for
Hush Puppies - the company's international brand known for comfort quality and style. Launching of
new 'Signature Collection' across its exclusive stores marking a new tradition of contemporary and
fashionable shoes for the new younger generation etc. were the major highlights for the brand. During
the year under review Hush Puppies continued to strongly re-position itself as an International
Premium Lifestyle Casual Footwear brand.Bata India incurred capital aggregating Rs.386.8 million in
2016-17 as compared to Rs.488.1 million (excluding Rs.306.3 million on account of the receipt of
constructed space under the erstwhile joint venture project at Batanagar) during the previous year
ended 31 March 2016.During the year under review Bata India executed Long Term Agreements
(LTAs) for settlements of dues with the Worker's Union at the manufacturing units of the company at
Southcan Bangalore and BataShatak at Hosur Tamil Nadu. During the year under review the
company successfully implemented a Voluntary Retirement Scheme (VRS) for workers at its
manufacturing unit at Faridabad Haryana wherein all the 170 workers accepted the VRS and
operations at Faridabad unit were discontinued since December 2016.During the financial year ended
31 March 2018 Bata India carefully re-engineered key touch points in the consumer journey thereby
stepping up the focus on Visual Merchandising via breath taking store windows curating a shopping
conducive playlist for instore music refreshing the store decor to highlight different brands / features
and employing trained stylists to better serve customer at the company's top stores in Metro's and to
be gradually extended across all stores. With a view to bring back the swagger to Bata the company
launched its internationally developed 'Red Angela Store Concept' in Kolkata and Delhi. This concept
is aesthetically designed and offers clutter-free shopping experience through merchandise focal points
(in red & white) and exudes a premium look that adds up to a 'wow' feel. During the year under review
Bata India added over 100 new retail stores 31 franchisee stores & renovated more than 90 stores
across India. The company opened the first Bata Women Store in India in Bengaluru focussed on
catering to footwear & accessories needs of woman consumers.During the year under review the
company's e-commerce division worked on opportunities to diversify brand reach in the existing online
business models. The company further continued to strengthen its online customer database by
reaching out to the leading telecom airline and banking players in association with affiliated partners.
Various market expansion strategies were put in place like increase of brand presence through
marketplace model by listing products on high-traffic generating websites including TataCliq
ShopClues GoFynd and Limeroad. The company's e-commerce website www.bata.in migrated to a
secure AWS server for enhanced performance that includes features like auto scaling and elastic load
balancing.The financial year 2017-18 saw various new initiatives for Hush Puppies - Bata India's
international brand known for comfort quality and style. Launching of new `Signature Collection'
across its exclusive stores marking a new tradition of contemporary and fashionable shoes for the
new younger generation etc. were the major highlights for the brand.Bata India incurred capital
expenditure of Rs. 930.77 million in 2017-18 as compared to Rs. 386.79 million in the previous
year.During the year under review the company executed Long Term Agreement (LTA) for settlement
of dues with the Worker's Union at the manufacturing units of the company at Batanagar Kolkata.

Vision:
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:
SERVE WITH PASSION:
We are passionate about delighting our customers. Serving their individual needs defines everything
we do. It is this passion for what we do that sets us apart from our competitors. We are proud and
energized by being part of a family company with deeply held values. We have all invested something
of ourselves in the company and act as if the company was our own. We like to win but not at all
costs. We take responsibility for how we impact the many and diverse communities in which we
operate.
BE BOLD:
We are pioneers. We value individuals with the courage to change, and to be prepared to fail
sometimes. We have a healthy dissatisfaction for the status quo. We encourage creativity. We
recognize curiosity and original thought. Innovation is the foundation stone of our company. We
embrace the future but take time to learn from the past. We do what we say we will do and do not rest
on our laurels. We celebrate success and value everyone’s unique contribution towards achieving the
goal.

COUNT ON ME:
We lead by example and follow when called. We value those who take accountability for their
successes and failures. We take responsibility for our own performance and the performance of those
around us. We encourage and support others to do their best. We place great importance on
developing ourselves and those around us and we believe that feedback is the breakfast of
champions. We share openly with others and we act with integrity in all that we do.

EXCEED CUSTOMER EXPECTATIONS:

Whether it is products, processes, or people, we are uncompromising when it comes to quality. We
strive to create products that are easy to buy, exciting to wear, and exceptional value. We strive to be
the most responsible and efficient in all that we do it order to deliver the best value to our customers.
We operate where design, comfort and value meet. Delighting the diverse needs and preferences of
our customers is our lifelong mission.

IMPROVING LIVES:
Making people’s lives better has been at the core of the company’s philosophy for over 120 years. We
do this by displaying respect for our customers, suppliers, employees and the communities we touch.
We believe that we can make a difference in the lives of everyone we touch through openness and
tolerance to race, religion or cultural differences. We offer an inclusive and supportive work
environment to our employees where individuality is valued, where people can ‘be themselves’, and
where everyone is encouraged to grow.

Customer:
Target Market:

Due to the range factor the maximum of market share belongs to the Middle class, Upper Middle
Class, Upper Class.

Customer Service:

Bata’s commitment to service continues to this day, from the designer’s sketchbook through to the
performance of our shoes on a customer’s foot. Bata companies strive to supply the right products, at
the right time, at the right price, and in a manner that fulfils our service commitments to both retail and
wholesale customers.

Product Line:

Ladies, Gents, Boys, Girls & Kids

Price:

 High level price  2000 to 12000

 Mid level price  500 to 2000

 Lower level price  100 to 500

Competitor:
Khadim India limited: One of India’s largest branded footwear retail players in terms of exclusive
stores operating under the Khadim’s brand through our Retail vertical. We have the largest presence
in East India and are among the top three players in South India. Our Distribution business vertical
has a strong network of 544 distributors.

Relaxo footwear: With its headquarter in New Delhi and 8 manufacturing units, Relaxo produces over
6 lacs pairs of footwear, every day. Relaxo footwear’s range boasts a fine combination of comfort,
style, and quality workmanship. A wide collection of fashionable, colourful, comfortable and durable
footwear for men, women and children.

Paragon:  The Company strongly believes that its greatest strength is its staff and its distributors. The
company's distribution of footwear is networked through 18 depots across India. Retail shopkeepers
are serviced by more than 450 distributors, delivering stocks to every corner of the country in the
shortest possible time. 

Liberty:  fashioning footwear for well over 60 years for the style conscious people around the globe.
We have a perfect pair for every member of the family. From school shoes to sports shoes, from
ballerinas to comfortable slips-ons, from corporate formals to relaxed casuals providing the widest
range of footwear options to the consumer. 

SWOT Analysis:
Managing the marketing function begins with a complete analysis of the
organization’s situation. The market should conduct a SWOT analysis.

The Swot analysis is the observation over an organization of its-

► Strength,
► Weakness,
► Opportunities, and
► Threat.

We can see it in this way-

Strengt Weakness
h es

Opportunities
Threat

The SWOT analysis of Bata Shoe Company is given below:

Strength:

1. Intention of sale environment: Bata Shoe Company has an intention of creating a profitable
sale environment in them.

2. Service motive: Bata Shoe Company has the motive of better service giving to the consumer.

3. Flexibility: Bata Shoe Company is a flexible departmental store. It can perform its business
activities both in much or less space.

4. Market research: The authority does a research over the market position, ups and downs of
prices, needs and wants of the customer to take important marketing decision.

5. Supply of goods according to new fashion: It serves the products to the consumer according
to the new style and fashion.

Weakness:

1. Delay in decision making: The authority has to take decision by consulting with other
members. Sometime long term discussion and arguing make the decision time consuming.

2. Lack of advertising: Advertisement provided by Bata Shoe Company is not sufficient. The net
information does not meet to our need.

Opportunities:
 1. Good will: Bata Shoe Company has created a good will among the consumer by providing
better service.

2. Direct communication: It maintains a direct communication with the consumer

3. Creating relationship: Bata Shoe Company creates direct relationship with consumer.

Threat:

1. Competitors: Powerful multiple stores like Apex, Afjal are competitors of Bata Shoe
Company.

2. Price rate: According to the changes to the demand authority has to less the price rate of
commodity. It causes loss for the company.

References:

https://www.business-standard.com
https://www.bata.in/
http://www.footwear.com/
https://www.businessinsider.in/
https://www.businesstoday.in/

Thanks & Regards,

 JOYSREE PAUL
PROGRAM- MBA (GENERAL)
BATCH-2019-20
ID No-19IUT0160007