MARKET ENTRY STRATEGIES: BATA IN INDIA CASE STUDY ANALYSIS:

QUESTION 1:

1. Given Bata’s legacy and competition in India, which market entry strategy (franchising,
direct retail, or online-first) would be most suitable? Justify your answer using relevant
frameworks.

ANSWER 1:

Thomas Bata formed the Bata Shoe Organization in Czechoslovakia in 1894 and served as
its first president. Bata's founding ideas led to the transformation of a traditional shoemaking
enterprise from individual cobblers to a team of workers using a conveyor belt. Bata,
headquartered in Canada, was the world's largest footwear manufacturing and marketing
organization in 2002, selling almost 14 billion pairs of shoes in the preceding century,
according to their website. The corporation represents 75 shoe manufacturers and tanneries
in 95 countries, with 6,300 company-controlled retail stores, 10,000 franchised shops, and
40,000 independent dealers.

In the 1990s, Bata's profitability declined due to rising competition and changes in tax and
tariff legislation. By 1998, Bata reported an operational profit loss of about 66 million. Bata
opted to progressively expand upscale rather than competing in the lower market segment.
Bata's investment in human resources and merchandising has resulted in the introduction of
new premium brands, rationalized manufacturing through outsourced manufacturing and
strategic supplier alliances, and upgraded retail network through company-owned stores,
reducing reliance on franchise stores, wholesale trade.

Strengths

1. Brand Image. 5. Financially strong.

2. fair quality for a modest or fair price 6. Convenient stores around the country

3. Diverse with options for jogging, training 7. Targeting all economic levels.
, court, basketball, football, and outdoor
8. Provide training to managers and staff.
4. Shoes for the entire family.
9. National retail network

Weaknesses
1. Lack of leadership continuity

2. Net revenues decreased by 5% in 2001.

3. Lack of sufficient strategy for advertising
4. Lack of diversity in fashionable shoes.

Opportunities
1. E-commerce
2. Acquired; partnership with tiny players.
3. Entering new market niches.
4. Capturing a market with no other viable competitors.
5. Innovative Products.
6. New media for advertising

Threat

1: Customer Dissatisfaction.
2. Price conflicts between competitors
3. Competitors
4. Political instability.
5. Economic Threat.

Economic growth variables directly impact companies and have long-term repercussions. In
other words, the market's competitive economic environment circumstances influence all
firms, whether local or international. The market will be influenced by inflation, interest rates,
foreign currency rates, and global growth trends. Bata, the world's largest footwear maker, is
headquartered in Canada. The network consists of 75 shoe manufacturers in 95 countries.
Bata is a member of BIG East (Bata International Group), which includes some eastern
countries, and BIG West (which includes some western countries). By the 1990s, the company
began selling shoes to mostly European and Middle Eastern nations. In the year 2000, Bata
shipped 730 000.

These variables consist of both external and internal components. Some rules harm the
business climate, while others are maintained by corporations for their own advantage. Legal
theory explores many views and creates strategies based on these laws. Consider safety
requirements and labor legislation. The DFRC scheme's decrease of value addition criteria
from 33% to 25% will assist exporters of leather products, especially footwear, leading to
increased export growth for Bata. Tanners can benefit from available funds to update their
footwear production facilities. To compensate for credit tightness caused by rupee
appreciation, a compromise interest rate is set for export credits.

Bata's long-standing philosophy of encouraging employee loyalty led to the majority of

employees staying with the company until retirement. Several top supervisors had been with
Bata for more than 20 years. Bata offers numerous benefits to its employees, including a
housing colony, a provident fund where both the company and the employee contribute 7% of
their salary, a gratuity scheme, an annual bonus, subsidized canteen facilities, and
scholarships for children. Since the early 1990s, Bata's workforce has steadily declined due
to retirements. This was done organically through attrition. For instance, the plant's workforce
decreased by 30% from 1990 to 2002.

• Market itself as a provider of basic needs for families in the target market segment.
• Ensure consistent quality service for customers across all Bata locations.
• Bata's debt-to-equity ratio is 3.51, implying that nearly 75% is debt. Management
should reduce debts to lower financial costs.
• To increase net income, reduce selling and administration expenses. Additionally,
improve e-business through the internet's broad reach.
• The business can launch a range of goods.
• The business can be attempting to expand its advertising across many media.
• The business can add more dealers.
 • The business might focus on providing footwear to its younger clientele.
• Customers express more satisfaction with Bata items' quality and pricing.
• The Bata and good standards are fulfilled by the client in terms of pricing, offers, qual
ity, and value-added service.
• The business may focus on cutting expenses and lowering prices.
• The business can employ a marketing plan aimed at increasing sales and profit.

The firm now focuses on e-commerce platforms like as Amazon, Flipkart, and Myntra, as well
as its own website, offering a greater range of SKUs. B2B sales have also remained consistent
on Amazon and Flipkart. In FY21, Bata sold about 2.4 million pairs of footwear online (up 33%
YoY), resulting in a turnover of around Rs 1,522 million, a 22% YoY increase. Currently, e-
commerce accounts for around 9% of Bata's business. Bata expanded its home delivery
services to over 1200 locations, added WhatsApp shopping, and introduced Bata ChatShop
and Bata Store-on-Wheels for a more convenient and safe shopping experience.

Bata has also been particularly focused on innovation.

In 2020, the innovation rate reached a record 17.3%, fueled by comfort and healthful
innovations like as Cushion Soft, Ortholite, and Life. Bata created popular antiviral and
antibacterial masks under the Power, Northstar, BBG, and HP brands. Customers choose
casual and comfy open footwear due to the new 'Work From Home' trend and less socializing
opportunities. Bata's new Work from Home, Easy Wash, and Fitness at Home collections align
with current trends.

The business kept at a strong pace after launching Bata ChatShop for the "Bata Ladies" and
"Comfit" categories. Bata introduced a new campaign, "Relaxed Work Wear," with Kartik Aar
yan and highlighting the most comfortable semi-
formals and formal footwear, in response to the market's progressive openness and improve
d customer sentiments which combine comfort and technology,
New products including Bounce Max, Bounce, and Bounce Plus released by the firm in Hush
Puppies.

The concept of using international brands like Slazenger and Hush Puppies, as well as intro
ducing new fashion labels like Marie Claire, Bata is using global sourcing agreements and
specialist manufacturing as part of its worldwide strategy. For example, in the past, the whole
shoe line would be produced at a Bata facility, like the Batapur plant.

The vast network of retail locations that Bata has amassed over the past century is one of its
strongest points. Bata's brand name is another asset. Nevertheless, the brand lacks a high-
end reputation. As a result, Bata has formed international partnerships with Echo, Caterpillar,
and Hush Puppies.

Online shopping, a recent breakthrough in E-Business, is the future of worldwide purchasing.

Most firms offer their products or services using internet channels. Customers are now
exposed to internet ads of many businesses.

Because of the growth of digital communication via the internet. This allows businesses to
readily determine consumer preferences and increase visibility for both established and
specialized brands. The consumer market may be segmented using four key variables:
geographic, demographic, psychographic, and behavioral.

As part of its strategic goal, Bata India keeps opening over 100 new retail locations throughout
India each year while closing or moving unprofitable ones. With over 3,000 square feet of area,
the majority of the new storefronts are big format and carefully designed to showcase every
type of footwear and accessory. These large format businesses are made to give its patrons
a wonderful atmosphere and enjoyable shopping experience.

Another disadvantage is that there are no Bata items available online. Online buying is
becoming popular in today's technological age. People have started purchasing clothing, food,
electronics, and footwear.

Bata India has around 1,526 retail establishments, including 220 franchise stores, compared
to 1558 in FY20. In FY21, Bata launched 18 new retail stores and 64 franchise locations
(mostly in smaller towns) across India.
The firm aims to grow into Tier 3/4/5 cities by franchising and opening 50+ outlets annually.
Bata's high brand recognition and heritage have led to increased interest in franchising.

Expansion through franchise channel will continue

Bata has expanded its distribution route, making its items available in over 800 towns and
25,000 MBOs.
ANSWER 2:

1. How should Bata optimize its value and supply chains to ensure cost efficiency, product
quality, and resilience against disruptions?

Bata aimed to strengthen manufacturing outsourcing, distribution, and brand strategy in

response to rising competition from local and Chinese imports. Bata has targeted customers
with lower- and middle-income levels. In 2001, the company decided to focus on higher-end
apparel, introducing new brands including Marie Claire and licensing internationally
recognized trademarks like Slazenger and Hush Puppies. Bata boosted manufacturing
outsourcing from 17% to 70%, constructed a premium retail network with megastores, and
developed a skilled management team.

Retail distribution:

Bata operated 256 company-owned shops, 25 K-scheme outlets, and 91 agencies, all selling
shoes. People that worked for the corporation owned and operated the shop. Shoes sold at
retail stores yielded a 42% profit margin. Fixed salary, commissions, utilities, and rent made
for 28% of expenses. Store managers' pay consisted of 20% salary and 81% commissions.

Wholesale distribution:

The wholesale segment sourced shoes from company-owned depots and delivered them to
approved retailers and distributors. Bata's 23 company-owned depots supplied 550 licensed
dealers and distributors, including a significant number of unregistered retailers which sold
Bata shoes, whereas registered dealers offered other brands, including non-affiliated ones. To
meet demand in remote areas, corporate personnel ran depots instead of business-owned
stores and agencies. These depots served local registered dealers. The company's total stock
turnover was 4 as compared to the retail average of 2.5. Bata's financial accounts showed a
significant increase in trade debt, primarily owed to distributors.

Manufacturing:
Bata footwear is classified into six types based on production techniques and materials.
Manufacturing methodologies varied from labor-intensive sewing ("lasted stuck-on sole") to
capital-intensive "direct injection" for joggers. The ABU department is currently developing a
screening process for supplier applications. The problem is that each seller is competing for a
share of as many product categories as possible. In the future, we aim to collaborate with and
establish specialized suppliers. In the late 1980s, there were 150 ABUs, but just around 40
remain now. We want to limit the number of participants to 15 who are serious about this.
Maintaining high-quality suppliers requires significant financial investment. Bata aims to offer
high-quality items at competitive costs for its customers and would support their suppliers by
offering technical assistance, experience, and training to ensure high-quality shoe production.

Manufacturing: Outsource product lines both domestically and abroad considering Bata's ai
m to boost outsourcing from the current 17% to 70% of sales).
2. Distribution: a combination of owned and franchised outlets, as well as a mix of wholesale
and retail channels.
3. Brands: Selection of men's, women's, and children's footwear from both budget and high-
end brands.

Bata Shoe Company dominates the footwear market. Bata has become synonymous with
footwear, creating a high brand recognition among customers. Their thoughts quickly shift to
great quality. For nearly five decades, Bata has offered clients a varied assortment of products.
Bata caters to customers from different socioeconomic backgrounds, meeting the footwear
demands of both upper and lower classes. Bata, a shoe maker, performs frequent customer
satisfaction surveys to maintain a tight relationship with its customers. Bata strives to
accommodate the changing needs of its clients.

The biggest shoe company in Asia works hard to stay ahead of the competition by projecting
an air of superiority, professionalism, and 24/7 efficiency. The country's efforts to adapt to the
21st century are demonstrated by a visit to any factory or office. With the newest technology
and a forward-thinking approach to human resource development, Bata India is preparing
itself. An astounding 16,000 people work at various functional centers, and another 200,000
are indirectly employed.
The four factories are located in Bataragar, which is now Kolkata, near Calcutta; Farithabad,
which is in Haryana; Bihar; and Ponya, which is in Bangalore.

Over the past few years, Bata India Ltd. has seen steady development, demonstrating its deep
comprehension of the demands and lifestyle of its customers. Over time, the footwear line has
significantly expanded, and more stylish and modern shoe styles have been introduced. While
satisfying the evolving lifestyle demands of its devoted clientele, Bata has been able to steadily
grow its clientele thanks to the new designs. In order to fulfill the constantly shifting demands
of the market, Bata has also modernized its manufacturing facilities by introducing better
materials, technology, and quality to produce footwear with a trendier appearance and more
comfort.

Stores are currently categorized by the corporation as: Metro, Mini and communities.
This categorization is used to determine the location, product profile, and shop layout. Metro
and mini-metro stores are non-air-conditioned and carry goods aimed at the aspirational upper
middle class, whereas stores in metro areas are air-conditioned and carry more luxury and
fashion brands. Similarly to this, small-town businesses lack air conditioning and carry mid-
range and economy goods intended for large consumer bases.

Continued expansion through the franchise channel

With Bata goods, Bata increased its distribution channel presence.

now accessible in 25,000 MBOs and 800+ municipalities. With more than 1,526 outlets
(including 220 franchise locations) compared to 1558 in FY20, Bata has a significant retail
presence throughout India. Bata launched 64 franchise locations (mostly in smaller towns)
and 18 new retail locations throughout India in FY21.
By growing through franchises, the firm is also actively attempting to reach more clients in Tier
3/4/5 cities, with intentions to build more than 50 locations year. Due to its long history and
well-known brand, Bata has seen a rise in interest in developing franchise locations.
QUESTION 3:

Should Bata reposition itself as a premium lifestyle brand, a mass-market brand, or a

hybrid of both? Provide recommendations based on competitive analysis.

ANSWER 3:

In the men's formal footwear industry, Bata remains the market leader, with Comfit, Moccasino,
and Ambassador also seeing significant growth. The shoe companies Marie Claire and
Sundrop have seen strong development in the women's market. The two most popular brands
in India for children's footwear are still Bubblegummer and Angry Birds. In 2013, the volume
of other well-known brands, including Power, North Star, Scholl, and Weinbrenner, increased.

In comparison to 2012, Bata India's online business had a nearly 100% increase in volume in
2013. With its shipments, its e-commerce company touched over 750 cities throughout India.
To draw in more online clients, new collaborations have

been made by partnering with major online retailers such as Flipkart, Jabong, E-bay,
HomeShop18, Myntra, Rediff, Indiatimes, and others. Cash on Delivery was introduced as
part of the plan to make buying easier for the final consumer. The number of visits to the
company's website, www.bata.in, has increased dramatically to almost 2.5 million.

Bata's competitive strategy is reflected in its business philosophy and the tactics it employs t
o fight off rivals and strengthen its position in the market.
Bata must focus on creating its competitive advantages for the future more quickly than its c
ompetitors copy its current ones.

Bata has redesigned its merchandising approach. In 2005, it essentially threw out all of its low-
margin stock. They have chosen not to sell any shoes whose margins fall below a specific
operational margin that they have set. And it seems that the efforts are paying off, as Bata
leads the organized footwear market with a market share of more than sixteen percent The
business now intends to raise the typical store size to 5,000 square feet.

Bata has used the "Survive, Revive, Revitalise and Thrive" approach in response to consumer
behaviour and demand to increase foot traffic, maintain customer engagement, and further
develop brand equity and assist Bata in navigating the present difficult business conditions,
together with a broad distribution network, cost-control measures, and a sound balance sheet.
Lastly, Bata makes investments in its human capital by utilizing its worldwide resources to
provide associated businesses in many nations ongoing training.

Differentiation strategy is one of the competing strategies that focus build a strong brand and
being significantly different is the key to success in today's business environment when
people hear the term Bata, they immediately link it with high-quality footwear and apparel.
The company should prioritize product development, market development, and market penet
ration strategies. Improved brand image will help Bata earn premiums in the upper middle m
arket, supporting financial goals.
The footwear industry is highly fashionable, so Bata needs to improve product development
efficiency to introduce new designs and styles.

Brand and Product Development:

Bata Shoe Company dominates the footwear market. Bata has become synonymous with
footwear, creating a high brand recognition among customers. Their thoughts quickly shift to
great quality. For nearly five decades, Bata has offered clients a varied assortment of products.
Bata caters to customers from different socioeconomic backgrounds, meeting the footwear
demands of both upper and lower classes. Bata, a shoe maker, performs frequent customer
satisfaction surveys to maintain a tight relationship with its customers. Bata strives to
accommodate the changing needs of its clients.

The Bata® brand is well recognized for providing high-quality, affordable footwear. Bata's
product development labs in Italy, China, and Canada design key elements for its branded
collections and products. Bata shoe Footwear businesses' fashion designers and buyers
create complementary designs that cater to the interests, budgets, and climates of their target
audiences. Quality is closely monitored throughout the manufacturing process, including
material selection. Bata Shoe Company works across five business units: Europe, Asia
Pacific, Latin America, North America, and Africa. Bata Shoe Company works over five
business units, including Europe and Asia.

Branding and merchandise:

Bata offered over 1,500 SKUs in 2002. Bata marketed these SKUs under licensed
multinational brands from its parent corporation. International manufacturers including North
Star, Power, and Bubble Gummers introduced specialist sports footwear for football, tennis,
and cricket in the early 1980s and before. The businesses featured joggers for teenagers,
amusing shoes for youngsters, Marie Claire women's stylish shoes, and Safari's Sandak
plastic sandals suitable for summer. Bubble Gummers' Glow, Light, and Compass shoes, as
well as music-themed Glow and Light shoes, have been incorporated into the core brands
over time. Bata increased promotion of its Hawaii slippers, Emozioni women's fashion
footwear, and Toughies school shoe line.

Bata is introducing a wide selection of items to the market.

Bata India, a global firm, has contributed significantly to India's economic prosperity. It has
brought superior technology and commercial experience to the city, resulting in around 10,000
direct and indirect jobs. Bata India outsources items to better serve its loyal consumers.

Bata offers comfortable, durable, and high-quality goods at accessible prices. Bata is also
affiliated with a variety of related items. Bata's top-end goods include Hush Puppies,
Weinbrenner, Scholl, and Marie Claire. Bata Lite,
Customers can choose from a wide range of products at different price points.
Aside from that, Bata has hired professional personnel at the store. Bata also have a robust
distribution network. Bata has 1200 retail outlets across India, excluding its internet presence.
It makes Bata available to as many people as possible.

Threats: Bata faces competition from new and well-known footwear businesses. Bata's
Weinbrenner and Power product lines face competition from Puma, Adidas, and Reebok,
among others. Metro, Catwalk, Inc. 5, and other organizations pose challenges to Hush
Puppies, Marie Claire, and Scholl. Bata has competition from brands like as Relaxo and
Liberty.

"Bata Gift Vouchers" is the tool that the BATA India group now uses. The vouchers' design
must suit the advertising topic in order to strengthen the brand's reputation.

The following characteristics of these gift cards are present:

Easy denominations to use
It is good for six months and can be used on any BATA product.
More than 1500 Bata outlets in India accept it.
QUESTION 4:

1. How can Bata effectively integrate ESG principles into its business strategy while
maintaining profitability in the Indian market?

ANSWER 4:

India is the world's second largest footwear producer after China, producing around 9% of the
worldwide total of 22 billion pairs every year. India manufactures over 2.2 billion pairs yearly,
of which 90% are used.
Approximately 10% is shipped to Europe and the United States.
India's per capita footwear consumption is 1.7 pairs, below the worldwide average of 3 pairs
in emerging nations and 6 pairs in developed ones.
Branded footwear accounts for around 45% of the market, while unbranded footwear holds
the majority (55%). Domestic demand for footwear has increased in recent years due to
urbanization, more disposable income, fitness and fashion awareness.

Political variables affect how much power a government has over the economy or a certain s
ector. When a government imposes a new tax or requirement, organizations' revenue-
generating mechanisms must change.
Political issues impact the business climate through tax, monetary, and trade policies enacte
d by the government during the fiscal year.
Bata's excellent political relationships with other nations ensure full consumer security for its
customers.
Tariffs on imported shoes decreased from 65% to 25% between 2000 and 2003, with further
reductions anticipated by 2005.

Environmental factors include aspects relating to the physical environment, such as the earth's
atmosphere. Environmental considerations have a significant impact on several industries.
Environmental factors that affect enterprises include climate change, weather, emissions, and
the availability of non-renewable resources. Bata's leather footwear manufacturing process
generated hazardous liquid waste, including volatile solvents. The chemicals were stored in
barrels in a public facility above ground. Bata Shoe Company has to modernize its storage
facility to comply with new rules on chemical storage and disposal from the 1980s.

Bata is cognizant of and devoted to maintaining the planet's environmental and ecological ba
lances, and its operations are subject to environmental audit processes.
Sewage treatment systems operate successfully and efficiently throughout all manufacturing
units.
Because the Batanagar and Bataganj plants are located on the banks of the River Ganga, w
ater discharge satisfies the standards of the Central Government's "Clean Ganga" efforts.
At the Bataganj unit, the "Zero Effluent Discharge" vision is being realized by using treated ef
fluent water for gardening and washrooms.

All Bata shoe and apparel

factories comply with stack emission standards and ambient air quality.
Special emphasis is placed on waste management, energy, water, and natural resource con
servation.

The product COGSsaving program "Project Refuel" was responsible for the Rs 70 million in
savings that were made in 2021.
The business introduced mobile kiosks for the elderly, housewives, and kids dubbed Bata St
ore-on-Wheels, as well as Bata ChatShop for Digital Adopters.
Additionally, it introduced Bata Home Delivery and WhatsApp buying to make buying simpler
and safer.
Sales through digitally enabled channels increased three times year over year, accounting fo
r 15% of overall sales.

The industrial business of Bata India is now acknowledged as the industry leader for safety
footwear. By introducing new molds and a new line of PU rubber soles, the product line has
been updated. The role of customer service has been enhanced to offer prompt resolution to
the industrial purchasers' inquiries.

To reduce waste, Bata implemented a recycling process for its products. The company's
initiatives include the following:• EVA packaging bags are recycled during the mixing process.•
Rubber, PVC, and EVA waste are recycled throughout the mastication process.• Waste water
from STP at the Bataganj factory is used for landscaping and road washing.• Waste oil from
manufacturing machinery is only sold to agencies designated by the Central Pollution Control
Board for recycling and reuse in related businesses.• Scrap products, such as leather cuttings,
discarded papers, and metallic parts, are sold to outside agencies for use in various sectors.

Bata has set up an internal mechanism for continuous improvement and take necessary me
asures for safe transportation and logistics optimization. These actions are improving
Bata's manufacturing system, establishing a safe workplace, providing opportunities for our
employees to reach their full potential, and reducing its environmental impact and to
achieve sustainable excellence.

Bata switched to local procurement and created "Project Thrive" to lessen reliance on import
s. With the help of innovations, a better product mix, and a solid brand positioning, Bata has
recently made great strides toward becoming a modern, contemporary brand.

Bata is always working to lessen the environmental impact of transportation, and

continual component of an efficient supply chain mechanism is the employment of suitable m
odes of transportation.
Bata’s major associates are situated close to the individual production facilities in India and a
re involved in providing the highest quality raw materials for the shoe manufacturing process.
This lessens Bata’s environmental effect and transportation expenses.
On water conservation activities, a Rain Water Harvesting Plant was developed at our Peenya
Industrial Area, Bengaluru, Karnataka facility in 2010, and it is currently running properly and
effectively to utilize rain water. On energy conservation activities at the Batanagar facility, a
biofuel-based Briquette-fired boiler is working efficiently and effectively, replacing a fossil fuel
oil-fired boiler, and different low-energy sensitive equipment has been introduced to replace
high-energy-consuming devices. Furthermore, in all plants, the Company has transitioned
from Petroleum solvent-based (PSB) adhesives to water-based (WB) adhesives. At
Batanagar, asbestos roofs are being replaced by metallic sheets in a staggered way, and the
same would be done for additional manufacturing plants in stages.

According to Bata, operating as a decent corporate citizen of the nation raises brand value
and promotes long-term success. Retailers Association of India (RAI) is affiliated with Bata.

Bata's CSR activities are meant to benefit the poor, needy, underprivileged, worthy, and
socioeconomically backward communities in society.

a. Structural adjustments to laws to support the expansion of the shoe sector.

b. Eco-friendly methods for hazardous waste disposal and other EHS procedures.

c.Ending child labor and other unfair labor practices in the footwear sector
d. Bata's emissions and waste fall within the acceptable ranges set by the CPCB and SPCB.

Bata has been actively involved in the Bata Children's Programme (BCP) efforts of the Bata
Shoe Organization (BSO) around the world, which aim to improve the lives of poor children,
particularly girls.

Priority has been given to the girl child population at these schools through specifically creat
ed programs on female adolescent healthcare, health & sanitation, life skills, athletics, and s
essions on female-centered problems.
To support the education of girls and address other matters about their children's general de
velopment, separate sessions have been conducted with the parents.

Additionally, a consumer engagement initiative called "Stride with Pride" was launched,
encouraging customers to donate their used shoes to Bata stores in specific locations. Bata
gave a new pair of shoes to a youngster in need for each pair of used shoes that was given.
During the campaign, Bata received 20,634 used pairs of shoes from 70 schools and 27 Bata
retailers in a few locations. Bata gave more than 85,000 pairs of shoes to less fortunate kids
as part of a preventive healthcare initiative and to lessen the disparities experienced by
socially and economically disadvantaged groups.

Social factors measure the market's social atmosphere, including cultural trends, demography,
and population analytics. Furthermore, these characteristics significantly influence how
advertisers perceive and encourage customers. Effective research in social and cross-cultural
communication is vital for success in regional and worldwide markets. Bata provides shoes
for all ages, classes, and families, but lacks everyday fashion design, leading customers to
seek out other manufacturers. This occurred due to insufficient advertising to attract
customers.
QUESTION 5:

Based on failed and successful market entry cases, what key lessons should Bata apply to
mitigate risks and ensure long-term success in India?

ANSWER 5:

India has strong political ties with Russia, Israel, France, Bhutan, Bangladesh, and the US.
India is known as a regional power, nuclear power, emerging global power, and prospective
superpower.
Cooperation involves internal and external coordination, establishing an enterprise network,
and forming strategic alliances and partnerships.
Collaboration is necessary within a corporation while maintaining competition,
treat all employees as "collaborators and the network plays a crucial role in its success.
Bata's ultimate purpose is to deliver services. Collaboration, customer loyalty, and worker and
consumer loyalty can only be achieved through a service model, not by government
intervention. Unlike politicians who rely on taxes, the Bata people rely on profits and consider
service providing to be the most valuable aspect of company.
Bata's workers share profits and outcomes from self-governing workshops equally.
Accountability for resources cannot be asserted without complicity from the persons involved.
Employees, particularly managers, may steal, lie, and bribe their way through a publicly owned
corporation without facing personal accountability.

A committed internal staff is responsible for carrying out the company's CSR initiatives. For
the design and execution of specific projects, the company collaborates with renowned
corporate bodies, government institutions, and non-governmental organizations (NGOs).
When all organizational components are consistent and coordinated, a common greater
degree of resulting influence is achieved. This is known as synergy in business. One
dimension cannot be prioritized over another or ignored. A business management system is a
well-balanced collection of functions, much like the human body.

Bata's main problem is its high administrative and production costs, which lead to higher
product prices. Bata items are connected with hefty import tariffs.
Bata focuses on quality, comfort, and durability over design and flair. Bata's goods do not
appeal to the country's youth market. Bata does not make significant attempts to recruit new
consumers. To remain competitive in the Indian footwear sector, Bata must attract new
consumers through advertising and special offers. Failure to do so risks losing important
customers to larger companies.

Bata periodically evaluates its efforts, the end of the project, endline surveys and baseline as
sessments will be conducted to evaluate the project's overall impact
throughout the year, programs are continuously monitored and evaluated (M & E)
to raise project quality and maximize outcomes to guarantee advantages for all parties.
The local communities and other stakeholders are consulted and involved in the development
of the company's CSR initiatives in many sites. An independent program implementation
committee oversees project planning and execution, regular evaluations, and stakeholder
information exchange at each location. The corporate CSR team of Bata establishes the broad
structure and guidelines that the local committees operate under.

Opportunities: Bata offers a variety of product lines for different consumer categories. It
enables Bata to attract clients from many backgrounds. Table I displays Bata's product lines
and consumer segments depending on income levels.
Bata is well-known for its sturdy, high-quality, and comfortable footwear. The items may not be
fashionable or appealing to a large number of young people. Despite this, Bata continues to
have a large consumer base and a devoted following. Bata can develop a rural market
segment.

Bata values transparency and avoids concealing information, using an open visor system.
Those who lack competitiveness or worth cannot collaborate. The Bata Company outsources
unproductive and low-quality work to organizations better fitted for the task.
In many situations, Bata is still regarded as a brand that produces school shoes. If Bata's
Research and Development department does not improve the design and trendiness of its
footwear, it risks losing a significant portion of its client base.

Despite Bata being a well-known brand, many of the new products are overlooked because of
their lack of marketing. Contemporary shoes would increase Bata's market share. Bata may
employ price reductions, media advertisements for their newest goods, and direct mail
brochures to overcome this issue.

Bata's research and development department does not prioritize trendy designs, making their
footwear unsuitable for young people. To attract young customers, Bata should create
innovative footwear styles. The youth consider outdated and unfashionable footwear to be
excessively expensive. Colorful and designer footwear, along with quality and comfort, can
attract more customers.

Strict monitoring of service standards will provide customers with a tailored experience,
leading to a willingness to pay a premium for Bata's brand, reducing the threat of price
competition.

Reducing trade barriers with the WTO, Bata may choose to encourage regional specialization.
For instance, its plants may specialize in synthetic leather shoes, while its Indonesian and
Thai factories, which have easy access to rubber, may specialize in canvas shoes.

For Bata India, concentrating on markets such as corporate, education, canteens, and defense
has proven to be a successful approach that has led to strong market penetration. A new line
of footwear specifically designed for healthcare professionals, including doctors, nurses, front
desk employees, maintenance personnel, etc., has been introduced.