CHAPTER -1

INTRODUCTION
INTRODUCTION:
Brand management is a communication function that includes analysis, planning and
positioning the brand in the market. The marketer needs to develop a good relationship with
the customer to enhance brand image. The brand management consists of tangible and
intangible elements. The tangible elements are like product, price, packaging, style etc. The
intangible elements include the customer relationship, consumer experience etc. Brand
management plays a vital role in modern society. They penetrate in all spheres of human life
such as economic, social, cultural etc. Positive brand association are developed if the product
which the brand depicts is durable, marketable, desirable. It helps an organisation to gain
goodwill and obstructs the competitor’s entry into the market. The customers must be
persuaded that the brand possess the features and attributes satisfying their needs. This will
lead to customers having a positive impression about the product or service.

BRAND :

A brand is the specific type of the product form. A brand is represented by a brand name,
symbol, design, logo, logo, packaging etc. It is the identity of particular product forms that
customers recognize as being different from others.

DEFINITION :

According to the American Marketing Association, the brand iis defined as a name, term,
sign, symbol, design or a combination of them. The brand is intended to identify the goods or
services of a company. It helps in differentiating product or service from those of competitors

OBJECTIVES OF BRANDING :

Brand plays an important role as an inseparable part of the product of a business firm. Some
firms invest a lot of money in the brand of their products. Brand helps to promote product, to
build image, personality and to develop brand loyalty. The main objectives of branding
product are as follows:

1. To differentiate a firm's product

Brand helps to differentiate firm's products from competitors' products. This makes
customers feel easy to recognize products of genuine producers.
2. To assist in promotion
The other objective of branding is to help in conducting promotional activities. The activities
such as advertisement, personal selling, publicity, sales promotion etc. are conducted with
brand name.

3. To increase prestige and status

Branding helps to increase prestige, personality and status of producers, distributors,
customers etc.

4. To maintain product quality

One of the main objectives of branding is to pay attention to maintain quality of the products
in order to sell and distribute the products with brand name. The firms, which cannot
maintain quality of their products, do not want to use brand name.

5. To increase brand loyalty

The other objective of branding is to increase customer' loyalty to brand or branded product.
The customers can buy only the branded products repeatedly.

6. To legally protect the firm

The other objective of branding a product is to protect the business firm from any legal
obstacles and get legal recognition and protection.

7. To build values for customers

To build consumer value and benefit of the products or value building of products is the other
objective of branding. A marketing manager should concentrate his efforts on promoting
special quality and advantage of the products of certain brand name. This also should
promote the value of the products to the consumers.

BRAND MANAGEMENT :
It includes managing tangible and intangible characteristics of brand. Incase of product
brands, the tangibles includes the product itself, price, packaging etc. While incase of service
brands, the tangibles includes the customer’s experience. The intangible includes emotional
connections with the product or service.
FEATURES OF BRAND MANAGEMENT :
A brand’s strength lies in the minds of customers. Brand knowledge installed in their minds is
the foundation of brand equity. Managers must seek to maximize performance in specific
attributes.

Characteristics of most successful brands8 Important characteristics of most

successful brands. The important characteristics of most successful brands are:

 Excellent delivery of desired benefits,

 Maintaining relevance,
 Perception of good value that matches customers expectations,
 Proper positioning in the consumer’s mind,
 Right balance between change and continuity,
 Brand hierarchy and portfolio,
 Coordination of marketing activities,
 Comprehensive understanding of customers,

1. Excellent delivery of desired benefits

A product is more than a simple collection of attributes. The total package a product delivers
attracts customers. The total package is augmented by brand image, service and other
tangible and intangible factors. For example, a coffee brand is an experience for all the five
senses such as aroma of coffee beans, rich taste, product display, background music, and rich
atmosphere. Excellent product package offers benefits that customers want.

2. Maintaining relevance
Successful brands change in line with the emergent environment. As the technology
advances, brands change both their tangible and intangible aspects to maintain relevance of
the situation. Changes occur in user image, usage imagery, personality and feelings. Strong
brands seek to develop with their customers. For example, Gillette, the strongest brand
changes with time to match the aspirations of the target customers.
3. Perception of good value that matches customer expectations
Most successful brands match customers’ expectations. This is possible by striking a balance
between the product quality, image and features on the one hand and consumers costs and
prices on the other. An accurate perception of how customers view price and value is the
basis for the strong brand’s pricing.

4. Proper positioning in the consumer’s mind

Most successful brands enjoy unique positions in the market. They create product
differentiation and gain an edge over their competitors. Brands like Sony and Mercedes
compete in the areas of advantage to neutralize the superiority of competitors.

5. Right balance between change and continuity

Though successful brands are consistent in their marketing activities, they create changes to
remain relevant with the times. At the same time, frequent changes spoil their image. So,
brands have to strike a right balance between change and continuity in their marketing
endeavors.

6. Brand hierarchy and portfolio

Modern firms do multi-brand businesses. Many brands will be in their portfolio. Each brand
in a portfolio bears a firms connection with its name, which can add to or dilute its equity, So,
a firm’s portfolio must form a definite pattern in order to strengthen equity. Conflicting brand
structures dilute their equity.

7. Coordinated marketing activities

World’s top brands make use of all marketing activities in a coordinated way. Brand elements
like logos, symbols, slogans, packaging and signage are coordinated to create the desired
image.
8. Comprehensive understanding of customers
Brand managers should assess what customers feel and think about their brands. Brand
building efforts should be based on beliefs, images and attitudes of consumers. This requires
comprehensive understanding of customers.

ADVANTAGES OF BRANDING :
 Gives identity to the product
 Makes it distinguishable from the other products.
 Creates customer loyalty.
 Creates and maintains organisation goodwill.

BATA is one of the top most brand over 123 years. 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
1200 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.
 CHAPTER-2
COMPANY PROFILE
GENERAL PROFILE :

Tomáš Baťa, brother Antonín and sister Anna

Start of Bata- August 24, 1894

Thomas Bat’a (pronounced ‘Batya’) establishes a shoe factory in Zlín, Czechoslovakia. Bat’a
succeeded in becoming one of Europe’s leading shoe manufacturers in just a few decades,
due to smart entrepreneurship, mechanization and competitive pricing.

FOUNDATION :
The T. & A. Baťa Shoe Company was founded on the 24th of August 1894 in Zlín (Moravia,
today the Czech Republic) by Tomáš Baťa (Czech: [ˈtomaːʃ ˈbaca]), his brother Antonín and
his sister Anna, whose family had been cobblers for generations. The company employed 10
full-time employees with a fixed work schedule and a regular weekly wage, a rare find in its
time.

In the summer of 1895, Tomáš found himself facing financial difficulties, and debts
abounded. To overcome these serious setbacks, Tomáš decided to sew shoes from canvas
instead of leather. This type of shoe became very popular and helped the company grow to 50
employees. Four years later, Bata installed its first steam-driven machines, beginning a period
of rapid modernisation. In 1904, Tomáš read a newspaper article about some machines being
made in America. Therefore, he took three workers and journeyed to Lynn, a shoemaking
city outside Boston, in order to study and understand the American system of mass
production. After six months Tomáš returned to Zlin and he introduced mechanized
production techniques that allowed the Bata Shoe Company to become one of the first mass
producers of shoes in Europe. Its first mass product, the “Batovky,” was a leather and textile
shoe for working people that was notable for its simplicity, style, light weight and affordable
price. Its success helped fuel the company’s growth. After Antonin's death in 1908, Tomas
brought two of his younger brothers, Jan and Bohuš, into the business. Initial export sales and
the first ever sales agencies began in Germany in 1909, followed by the Balkans and the
Middle East. Bata shoes were considered to be excellent quality, and were available in more
styles than had ever been offered before. By 1912, Bata was employing 600+ full-time
workers, plus another several hundred who worked out of their homes in neighbouring
villages.

World War I
In 1914, with the outbreak of World War I, the company had a significant development due
to military orders. From 1914 to 1918 the number of Baťa’s employees increased ten times.
The company opened its own stores in Zlín, Prague, Liberec, Vienna and Pilsen, among other
towns.
In the global economic slump that followed World War I, the newly created country
of Czechoslovakia was particularly hard hit. With its currency devalued by 75%, demand for
products dropped, production was cut back, and unemployment was at an all-time high.
Tomáš Baťa responded to the crisis by cutting the price of Bata shoes in half. The company’s
workers agreed to a temporary 40 percent reduction in wages; in turn, Bata provided food,
clothing, and other necessities at half-price. He also introduced one of the first profit-
sharing initiatives, transforming all employees into associates with a shared interest in the
company's success (today's equivalent of performance-based incentives and stock options).
Shoemaker to the world
Consumer response to the price drop was dramatic. While most competitors were forced to
close because of the crisis in demand between 1923 and 1925, Bata was expanding as
demand for the inexpensive shoes grew rapidly. The Bata Shoe Company increased
production and hired more workers. Zlín became a veritable factory town, a "Bataville"
covering several hectares. On the site were grouped tanneries, a brickyard, a chemical
factory, a mechanical equipment plant and
repair shop, workshops for the production of rubber, a paper pulp and cardboard factory (for
production of packaging), a fabric factory (for lining for shoes and socks), a shoe-shine
factory, a power plant and a farming activities to cover both food and energy needs...
Horizontal and vertical integration. Workers, "Batamen", and their families had at their
disposal all the necessary everyday life services: housing, shops, schools, hospital, etc.

International growth
Bata also began to build towns and factories outside of Czechoslovakia (Poland, Latvia,
Romania, Switzerland, France) and to diversify into such industries as tanning (1915), the
energy industry (1917), agriculture (1917), forest farming (1918), newspaper publishing
(1918), brick manufacturing (1918), wood processing (1919), the rubber industry (1923), the
construction industry (1924), railway and air transport (1924), book publishing (1926), the
film industry (1927), food processing (1927), chemical production (1928), tyre
manufacturing (1930), insurance (1930), textile production (1931), motor transport (1930),
sea transport (1932), and coal mining (1932). Airplane manufacturing (1934), synthetic fibre
production (1935), and river transport (1938). In 1923 the company boasted 112 branches.
In 1924 Tomáš Baťa displayed his business acumen by figuring out how much turnover he
needed to make with his annual plan, weekly plans and daily plans. Baťa utilized four types
of wages – fixed rate, individual order based rate, collective task rate and profit contribution
rate. He also set what became known as Baťa prices – numbers ending with a nine rather than
with a whole number. His business skyrocketed. Soon Baťa found himself the fourth richest
person in Czechoslovakia. From 1926 to 1928 the business blossomed as productivity rose 75
percent and the number of employees increased by 35 percent. In 1927 production lines were
installed, and the company had its own hospital. By the end of 1928, the company’s head
factory was composed of 30 buildings. Then the entrepreneur created educational
organizations such as the Baťa School of Work and introduced the five-day work week. In
1930 he established a stunning shoe museum that maps shoe production from the earliest
times to the contemporary age throughout the world. By 1931 there were factories in
Germany, England, the Netherlands, Poland and in other countries.
In 1932, at the age of 56, Tomáš Baťa died in a plane crash during take off under bad weather
conditions at Zlín Airport. Control of the company was passed to his half-brother, Jan, and
his son, Thomas John Bata, who would go on to lead the company for much of the twentieth
century guided by their father’s moral testament: the Bata Shoe company was to be treated
not as a source of private wealth, but as a public trust, a means of improving living standards
within the community and providing customers with good value for their money. Promise
was made to pursue the entrepreneurial, social and humanitarian ideals of their father. The
Baťa company was apparently the first big enterprise to systematically utilise aircraft for
company purposes, including rapid transport of lesser personnel on business like delivery of
maintenance men and spares to a location where needed, originating the practice of business
flying.

Bata India is a footwear manufacturing company incorporated in 1931. The company was
earlier known as Bata Shoe Company, later in 1973 the name was changed to the present one.
The company manufactures footwear for men, women and children. The Company
manufactures shoes of various quality such as leather, rubber, canvas and PVC shoes.
Bata Group has worldwide presence across 5 continents, serving 1 million customers per day
and operating 4,600 retail stores globally.
Prior to incorporation of Bata footwear were manufactured by handicrafts and small
enterprise sectors. The company started with its small operation unit located at Konnagar
(near Calcutta) in 1932.
Currently it has five factories located at Batanagar, (West Bengal), Bataganj, (Bihar),
Faridabad (Haryana), Peenya (Karnataka) and Hosur (Tamil Nadu).
Today the company is the largest shoe company in India in terms of sales and revenues. It
commands around 35 percent of market share in India. Company’s 98 percent revenue
comes from domestic operation. It owns 1250 stores spread across India.
BIL’ manufacturing unit became first Indian shoe company to receive the ISO: 9001
certification. The company currently sells over 45 million pairs of shoes every year and has
an annual sales turnover of more than Rs 8000 million (USD 178 million).
Currently the company owns brands like Hush Puppies, Dr Scholls, North Star, Power, Marie
Claire, Bubblegummers, Ambassador, Comfit and Wind.
Milestones:
2010 - Bata India Ltd won the 'Consumer Awards 2010' as 'India's Most Preferred Retailer'
given by CNBC Awaaz.
• Awarded Amity Corporate Excellence Award - 2009 in a ceremony held in Amity
Business School, NOIDA on February 27th 2009. Bata received the award for the third time.
• Business Week lists Bata India in list of “Th
e world’s 25 Unsung Innovative Companies” in its May 2009 issue. The report was
compiled by Boston Consulting Group, Business Week’s partner in Annual Most
Innovative Companies Special.
• Awarded Outstanding Sales performance for Year 2008 for Hush Puppies by Wolverine
Group- Announced in May 2009 in Michigan
• Brand Equity recognized Bata in the TOP 50 Most Trusted Brands in June 2009. Bata is
the only lifestyle retailer in the top 50 brands.
• Bata India awarded the prestigious Images award of the year for the Most Admired
Retailer of the Year – Fashion & Lifestyle in Mumbai on September 16, 2009.Other
nominees in the category were Levis, Benetton, Wills Lifestyle, Bata, Louis Phillipe and
Titan
• Bata India awarded the Most Admired Footwear Brand by Images Fashion Forum in
2009, the ceremony was held in Mumbai on January 28, 2009
• Bata India received the Amity HR Excellence Award for Corporate Ethics on 28th
August 2009 in a ceremony held at Amity Business School, NOIDA.
• Bata India is selected as a POWERBRAND in the POWERBRANDS 2010. The
selection is done after an extensive pan India research conducted by Indian Council for
Marketing Research to select The Most Powerful Brands in India in the year 2009.
BATA BRANDS

Bata Store Wenceslas Square in Prague, Czech Republic - 2005

 Bata (Baťa in the Czech Republic and Slovakia)

 Bata Comfit (comfort shoes)
 Ambassador (classic men's shoes)
 North Star (urban shoes)
 Weinbrenner (premium outdoor shoes)
 Marie Claire (women's shoes)
 SunDrops (women's shoes)
 Bubblegummers (children's shoes)
 Baby Bubbles (children's shoes)
 Safari (desert shoes)
 Power (athletic shoes)
 Patapata (flip flops)
 Toughees (school shoes)
 Tomy Takkies(urban shoes)
 Verlon (school shoes)
 Teener (school shoes)
 B-First (school shoes)
 Footin (trendy shoes)
 Bata Industrials (work & safety footwear)
 B.First (sport shoes)

Bata India Ltd. Company History and Annual Growth Details 1931 –

Bata India Limited the Company was incorporated at Calcutta. The Company Manufacture
and market of all types of footwear, footwear components, leather and products allied to
footwear trade. - Bata was originally promoted as Bata Shoe Co Pvt Ltd by Leader AG,
Switzerland, a member of the Toronto-based multinational, Bata Shoe Organisation (BSO). It
became a public limited company in 1973 and the name was changed to Bata India Ltd.1937
- Tanning was introduced at the new factory at Batanagar, along with the introduction of
leather products towards the end of the year. 1942 - In addition to the footwear manufacturing
plant, a machinery department was set up which produced the first Indian-made major shoe
machine. A leather footwear factory was established at Patna, Bihar, which is known today as
Bataganj. 1952 - In Mokamehgat, a tannery was established and a hide purchasing centre was
also set up there. Another factory was constructed at Faridabad. 1973 - With the public issue
of capital in June, Leader A.G. St. Moritz, Switzerland offered for sale 5,00,000 shares out of
their holdings at a premium of Rs 20 per share (2,00,000 shares each to LIC and UTI and
1,00,000 shares to the public).

In 1977 - Leader A.G. St. Moritz, Switzerland offered for sale 8,00,000 shares at a premium
of Rs 8 per share to resident Indian nationals thereby reducing their holdings to 12,00,000
shares or 40% of the issue capital. - Another 47,14,000 No. of equity shares of Rs 10 each at
a premium of Rs 25 per share were issued to Bata (BN) B.V., Amsterdam, a wholly owned
subsidiary of Leader A.G. St. Moritz, Switzerland, in order to raise their holding in the
Company from 40% to 51%. 1979 - 7,50,000 bonus shares issued in prop. 1:4. 1984 -
15,00,000 bonus shares issued in prop. 2:5 in April. 1987 - The Company privately placed
with financial institutions (UTI, LIC, GIC & its subsidiary) 15% debentures worth Rs 5
crores. The Company also allotted debentures worth Rs 1.75 crores to the Army Group
Insurance Fund. - The Bata Shoe Organisation consists of 96 independently run companies in
90 countries throughout the world. - 52,50,000 bonus shares issued in prop. 1:1.1988 -
Agreement was arrived at with Adidas of West Germany for manufacture and marketing of
sports and special application footwear, spots goods and sports wear in India and the products
were expected to be launched in December, 1989. - Marketing of `Star' clothings designed by
Murjani International, New York, U.S.A. and sourced through Inmark Brands Pvt. Ltd., was
launched. - A new brand of shoe, `Tigre' was introduced during the year for sales through
wholesalers and independent retailers.1989 - The Company sucessfully launched `Adidas'
collection of hi-tech sports footwear. - As a result of the R&D activities, special leather board
was developed as a substitute for insole leather.1990 - A highly versatile sample 18-station
bicolour injection moulding plant was installed in the Bangalore factory for production of
`State-of-the-art' injection moulded shoes with synthetic and textile uppers and specially
developed PVC compounds as soleing material. - Pursuant to a Scheme of Arrangement
between the Company and Bata Properties, Ltd. a wholly-owned subsidiary of the Company,
certain properties constituting the real estate division of the Company were transferred to
BPL for better development and management with effect from 1st July. 1991 - A promotional
brand `Tigre' was launched to keep the factories full at all times and thereby reduce losses
due to under recovery of overheads. - The Company issued non-convertible debentures
aggregating Rs 3.50 crores to SBI Mutual Fund. These debentures are redeemable in three
equal instalment at the end of 6th, 7th and 8th year from the date of allotment. Negotiations
were in progress for private placement of the remaining debentures.

In 1992 The workers at Batanagar factory went on strike from 3rd January, to 23rd May,
which resulted in a substantial loss of production during the initial 6 months of the year. - The
Company undertook to set up a green field export oriented unit at Hosur in Tamilnadu with
the State-of-the-art technology. - Over the years, the Company with the collaboration of Bata
Development, Ltd., London, U.K., and its association with Bata, Ltd., Toronto, has been
building up its own well-equipped and up-to-date R&D organisation. 1993 - The Company
undertook to expand and modernise its existing plants for capacity optimisation to become
cost efficient on a global basis. Apart from it also undertook expansion and upgradation of its
retail stores. Export Oriented Unit was also to be set up at Hosur in Tamil Nadu. - During
January, the Company issued 105,00,000 No. of equity shares of Rs 10 each at a premium of
Rs 20 per share on rights basis in the proportion of 1:1. Allotment of 1,856 No. of equity
shares was kept in abeyance since the matter was sub-judice. The balance 104,98,144 shares
were allotted. 1996 - The Company has received a notice in writing from a member of the
Company under Section 257 of the Companies Act, 1956 signifying his intention to propose
the appointment of Mr Thakur as a Director of the Company. 1998 - Bata India, a subsidiary
of the Canadian multinational Bata Shoe Organisation, has suspended its after-sales service. -
Every Bata outlet, 1,000 owned and over 600 joint ventures were expected to sell Hush
Puppies, Marie Claire and Adidas. - Bata India has proposed a dividend of 85 paise per share
to its shareholders for the year ended December `98. - The shoe major had concluded long
term wage agreements with the workers of its factories at Faridabad (Haryana) and
Mokamehghat (Bihar) for three years up to 2001. 1999 - Bata needs to launch new products
on a regular basis by expanding its women's range, and moving into the premium segments it
had vacated. - The company will launch the `Sundrops' line at New Delhi on August 16. -
The company signed seven long-term agreements and the last in Batanagar is in an advanced
stage of negotiations which will be settled soon. - Bata's Faridabad factory workers' union
finally reached an agreement with the company management, ending the nearly eight-month-
old lock-out at the unit. - Bata India is aiming to achieve a 15 per cent growth in turnover and
profits in 1999, to reach the target set out in the Vision 2001 plan drawn up by Compass, the
international board of the Bata Shoe Organisation (BSO). - Shoe major Bata India, which is
set to unleash a new advertisement campaign for its new ladies range `Sundrops', has signed
up film actress Rani Mukherjee to endorse the line. 2000 - Bata India (Bata) is the largest
footwear manufacturer and produces a wide range of footwear such as canvas, rubber,
leather, plastic and so on. - The Company has lifted the lock-out at its Peenya factory in
Karnataka. The lockout was declared on March 8th following a strike by the employees'
union. 2003 -Shareholders pass all the major nine requisite resolutions. -Appoints Gautam
Thapar, Vice-chairman and MD of Ballarpur Industries Ltd on the Board of the company.
-Forges into a retailing alliance with Lee Cooper Shoes , to retail their shoes. -Engages
Ogilvy
and Mather to devise its Festive season Advertising, side stepping , JWT, its incumbent
agency. -Repositions itself as the marketing firm. 2005 -Bata India Ltd Issues Rights in the
Ratio of 1:4. 2006 - Bata India Ltd has informed that Mr. J Carbajal has been appointed as an
Additional Director on the Board of Bata India Limited. 2007 - Bata India Ltd has set up a
new flagship store in Thiruvananthapuram. 2010 - Bata India Ltd has informed that Mr.
Fadzilah Bin Mohd Hussein has been appointed as an Additional Director on the Board of the
Company with effect from July 29, 2010. 2011 -Mr. Rajeev Gopalakrishnan has been
appointed as an Additional Director of the Company -Bata India - Board recommended
Dividend of Rs. 4/- per share (i.e. 40%) -Appointments of Mr. Atual Singh and Mr. Akshay
N Chudasama as Additional Directors of the Company. 2012 -Mr. Gigi Abraham has been
appointed as an Additional Director of the Company -Mr. Maloy Kumar Gupta has been
appointed as the Company Secretary & Compliance Officer of the Company. 2013 -Bata
India gains as parent company hikes stake. -Bata India bagged the award for 'Most Admired
Large Format Multi Brand Footwear Retailer of the Year' by the Images Shoes & Accessories
Forum - 2013. -Bata India Most attractive brand at the 11th position - 2013. -Brand Equity
recognized Bata into the 'Top Most Trusted Brands' in November 2013 2014 -Udyog Rattan
Award - The Institute of Economics Studies honoured Mr. Rajeev Gopalakrishnan and the
Company with the Certificate of Excellence and Gold Medal at the "International Global
Meet" scheduled on the 23rd January 2014. -The Registered Office of the Company has been
shifted from 6A, S.N. Banerjee Road, Kolkata 700 013 to 27B, Camac Street, 1st floor,
Kolkata 700016, West Bengal, India. Tel: (033) 39802001 Fax: (033) 2289 5748.2015 -Bata
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MISSION AND VISION

Our vision
Be, and be recognized, as the best product and service company in the safety footwear
industry.

Our mission
We will provide products and services of superior quality which improves and protects the
health of the feet of our customers. We are the innovator and driving the industry. We are the
preferred business partner for our customers.1

AIM & OBJECTIVES :

Financial & Marketing Aims and Objectives
Bata India has around 13.7 percent of the market share and the company has decided to
increase its market share by introducing a new product under the brand Power in the market.
Power brand is exclusively meant for sports wear. The company expects to have an increase
of 3.25 percent in its market share by introducing this product. The product to be launched is
named as Power - Lite. It sells around 45 million pairs every year and has decided to increase
its sales by introducing Power- Lite. The decision to introduce a new product was made in-
order to compete with the global brands like Nike, Adidas, Reebok, Puma etc in the Indian
market. These global brands were the suppliers of specialised sports shoes and thus Bata is
trying to capture its position in the market for the specialised sports shoes. The company
identified some issues and customer needs with respect to their product. Their product was
lagging behind in latest design (style) and the customer's comfort when wearing the shoe. The
company has invested in huge amount in changing its store appearance and has also taken
steps to incorporate the new technology involved in manufacturing specialised shoes. The
company forecasted the sales of specialised sports shoes for the up coming years and will
have an increase by 14 percent in its revenue, after the launch of the new product. The new
specialised sports shoes targets the people involved in sports and all segments of customers
from children to adults. Thus the marketing, financial aims and objectives are discussed.
SWOT/SWOC ANALYSIS OF BATA :
Strengths
1. Worldwide Presence in over 70 countries and production facilities in 27 countries

2. Benefit received from link to the international organization for back-office systems,
product innovations and sourcing.

3.Found in all the metros, mini-metros and towns

4.Sells through over 1200 retail stores in India and 5000 stores worldwide

5.Employs more than 6800 people in India and 40000 people world over and over 30,000
dealers

6. Excellent advertising and brand presence

Weaknesses
1. High cost for brand protection

2. Intense competition in the footwear segment means limited scope to overhaul market share

Opportunities
1.People now look towards buying footwear as a blend of fashion and comfort, so now has an
increasing market size

2. Bata has an opportunity to create a separate division for tackling the rural markets in
emerging nations

3. Global expansion in the premium footwear section

Threats
1. Intense Competition from other leading footwear brands

2. Commoditization if fashion footwear not differentiated well

Competition

Competitors
1.Liberty Shoes

2.Metro Shoes

3.Red Tape

UNIQUE ACHIEVEMENTS : Awards Received

 

 The Most Trusted Brand (Retail) - Brand Equity recognized Bata into
the 'Top Most Trusted Brands' in November 2013

 Udyog Rattan Award - The Institute of Economics Studies

honoured Mr. Rajeev Gopalakrishnan and the Company with the
Certificate of Excellence and Gold Medal at the 'International
Global Meet' scheduled on the 23rd January 2014. The IES
commits to improve the country economy through its activities
by holding conferences & group discussions on the issues of
contemprary business and econmics interests.
 

 The Most Attractive Brand at the 11th Position - Most

attractive brand at the 11th position - 2013. The report India's
most attractive brand is globally, the foremost intensive study on
Brand attractiveness. It is a comprehensive list of most attractive
brands based on 36 traits of attraction quotient, find a survey
research firm TRA
  Images Shoes & Accessories Forum Held at Mumbai - Bata India
bagged the award for 'Most Admired Large Format Multi Brand Footwear
Retailer of the Year' by the Images Shoes & Accessories Forum – 2013

 
 

FUTURE PLANS :
1New Delhi: Footwear chain Bata is expanding its accessories segment to quicken
growth, as it witnesses increasing demand for products such as ladies handbags and belts. It is
expecting sales from the category to expand at double digits this fiscal year.The company
plans to give more space to display accessories at its new stores. Rajeev Gopalakrishnan,
Bata's managing director for South Asia, said the Marie Claire range of products, like
sunglasses and bags targeting the youth, has seen impressive growth in the past year."The
idea is to offer a complete solution to our consumers and hence the products are kept in
coordination with shoes within the existing space," Gopalakrishnan said.

The collection of accessories at Bata ranges from bags and belts to sunglasses, scarves, socks
and mobile wallets, occupying almost 5-10% of the space in its store."The average size of our
stores is 3,000 sq ft. We are now also looking at opening bigger destination stores at key
locations like the high streets, highways and shopping malls. A larger store space gives us an
opportunity to display more number of lines with a wider range of offering," Gopalakrishnan
said.The biggest Bata Store, measures 20,000 sq ft, is at the Viviana mall in Mumbai. It
recently opened another big outlet, spread over 9,000 sq ft, on the Hill Road in Mumbai's
Bandra area.Bata's new stores will be retailing leather handbags and bags for all occasions.
They will also showcase other accessories.Bata India reported a turnover of Rs 2,201.08 crore
in the year ended on December 31, 2014.

PRODUCTION :
Product mix :
 Raw materials :

METRIALS – LEATHER

Leather is the most used natural material, and presents ideal characteristics for footwear.
Leather breathes, it is soft, offers very good absorption ability; and is able to adjust to
the individual shape of foot.
We recognize several basic types of leather.

 Smooth leather has a soft structured surface with small pores, wherein defects are
corrected by buffing to remove original grain and can be finished in glossy or dull surface with
pigment.

 Aniline/Semi-Aniline leather with a smooth and highly glossy surface by Lacquere

finish. This type of leather surface is prone to mechanical damage, chemical impact, infusion
and frost.

 Nubuck is top-grain cattle rawhide leather sanded or buffed on the grain side or
outside, to
 give a slight nap of short protein fibers producing a velvet-like surface. It is resistant to wear
and may be white or coloured. Nubuck may feel similar to suede but the process is different.
Suede is created from the inner side of a hide, whereas nubuck is from the outer side, giving
more strength and thickness along with the fine grain.

 Bottom leather is a type of leather used for soles of formal footwear, very prone to
moisture and uneven surface. Embossed leather (printed). Embossed or printed leather is also
used as insole for summer footwear.

 Oil/Waxy Pull Up Leather A leather bearing an oil/ wax finish that by design
takes on a lighter colour when stretched. It is very natural and lively in look, and
used for casual shoes.

PRODUCTION PROCESS :
1. Raw materials
 Cement adhesive
 Rubber latex
 Sole (both inner & outer)
 Cloth (brought from Bombay dyeing) used for making upper material
2. Cement and latex manufacturing
3. Sole pull manufacturing
4. Making binding
5. Folding, cutling, stamping
6. Stitching
7. Assembly
8. Vulcanizing
9. Quality controlling

FINANCE
SECTION B: FINANCIAL DETAILS OF THE COMPANY

1. Paid up Capital: Rs.642.64 Million

2. Total Turnover: Rs.24,972.41 Million

3. Total profit after taxes: Rs.1,587.48 Million

4. Total Spending on Corporate Social

Responsibility (CSR) as percentage of

profit after tax (%):

Rs.60.02 Million, i.e., 3.78% of profit after tax

5. List of activities in which CSR expenditures

have been incurred:

The details of CSR activities undertaken by the Company and

CSR expenditures incurred thereon during the financial year

2016-17 by the Company have been provided in the Annual

Report on CSR, annexed with the Board’s Report.

PERSONAL :
HUMAN RESOURCE PLANNING
Bata India Ltd has a separate department to manage the human resource of the organization
that is responsible to systematically reviewing human resource requirements to ensure that
required number of employees, with the required skills is available when needed. They prefer
the internal employees for the recruitment over the eternal recruitment and a forecast for
the supply of !uman "esource within the organization They use skills inventory for middle
management and they use replacement charts for operational level employees

1.The fiscal year or the financial year that starts from April to march is considered to be
asone year

2.The Human Resource department makes an organisation chart for each and
everydepartment in the organisation.

RECRUITMENT AND SELECTION PROCESS

The recruitment and selection is the major function of the human resource department and
recruitment process is the first step towards creating the competitive strength and the strategic
advantage for the organizations. "ecruiting process involves a systematic procedure from
sourcing the candidates to arranging and conducting the interview and requires many
resources and timeBata India ltd is a traditional organization and it has got very in%eible
culture and it does not believe in outsourcing

MARKETING PROCESS :
Marketing mix:
Bata as a company is a widely known and acknowledged “People’s brand” for the worldwide
shoe industry. Bata is extensively liked by a majority of the population, and is undoubtedly
one of the most common and well known shoemakers and shoe Company of modern times.
The legacy of Bata dates back to a century, although the family, which started the company in
1894, had a strong history of being shoemakers, several years prior to that date. It was
established by siblings of the then Bata family, in the erstwhile Austro-Hungarian empire in
the city of Zlin, and ever since its inception has been known for durability and affordability,
which has been the reason for its growth.
Marketing mix of Bata
Bata received a lot of propulsion during the first world war, when the whole region in which
Bata operations were setup became the Focus of war and there was a huge increase in
demand for military boots and related items. Bata seized this opportunity, became the biggest
supplier of shoes to military, and rose to fame. In the 2 years after world war, when there was
a massive slump in market and there was a prevalent economic depression in general sense,
Bata made another crucial decision of decreasing costs of production and wage, and thereby
providing shoes in the market at rock bottom prices. This whole function turned the table in
Bata’s favor, and within next couple of years, it became one of the most popular brands and
spread its wings worldwide.

In present day, it still has a massive outreach and appeal to masses with active presence in

almost half of the countries of the world, due to its highly effective and adaptable model of
operations, employee satisfaction and welfare and image of being the common man’s
shoemaker. It has impressive sales and profit figures and claims to serve to almost onemillion
customers each day across territories. Today, it is still being managed by the original Bata
family, and has headquarters in Switzerland, which handles operations across 27
manufacturing facilities world over, with an employee base of almost thirty thousand and
more than five thousand retail outlets.

The impressive story of Bata and its everlasting legacy is the outcome of adopting and
implementing an intricate marketing strategy, which became a worldwide phenomenon and
has inspired several other models and is valid and widely adopted till date due to its effective
and logical approach. Discussed below is the marketing mix of Bata across four P’s:

Product in the marketing mix of BATA

Since its very inception, Bata has had a huge product portfolio in terms of the large variety of
shoes, sandals and accessories that it offers and the consistency they promise. Millions, who
look for no nonsense products, heavily rely upon Bata and the no frills attached Bata shoes
which can be obtained at affordable prices. Owing to its reputation of supplying good quality
shoes (and its history of supplying shoes to military in the First World War) people expect the
same durability from Bata. Bata has over the years provided well designed products with
focus on durability and price.
This marketing strategy was in fact a hit in India, where rural areas are much larger than
urban areas, and rural population looks for cheaper alternatives. Due to its constant
penetrative price and the maintenance of good quality at that price, Bata showed consistent
growth and expansion, especially in medium scale market. Bata has recently also tied up with
Hush puppies to offer the premium range of shoes from Hush puppies thereby giving a
refreshing air to the brand value. In fact, after price, product is the strongest P in
themarketing mix of Bata.

Main products of Bata – Casual shoes, formal shoes, sandals, Men and women collection,
sports shoes, accessories

Brands under Bata – Hush puppies, Sparx, Sandak, Power, North Star, Mocassino, Marie

claire, Comfit, Bata.

Price in the marketing mix of BATA

As discussed above, price is the strongest P in the marketing mix of Bata because BATA has
had fantastic response from the market due its affordable and mass market pricing. Anyone
can purchase Bata products easily. Bata uses psychological pricing as its pricing strategy.
Bata generally prices a product to the nearest lower “9” digit figure of the actual price. For
example, any commodity to be prices $10 is priced at $9.99 to lure and attract more
customers. Bata started this strategy in terms of pricing its products long back, but it is still
being implemented in Bata Showrooms.

Apart from this phenomenon, in general Bata prices its shoes very moderately, and keeps
them easily affordable, which is one of the key reasons for its growth. Off course, the pricing
then affects the premium customers and Bata cannot target the premium customers who think
of Bata as a mass market brand and not justifiable to their status. However, this is a conscious
call by Bata because it has some premium products like Hush puppies to drive margins,
whereas other products are mainly present to drive turnover and quantities.

Place in the marketing mix of BATA

Placement of Bata and all its subsidiaries has been widely effective because it was done after
regular market research studies. In fact, maintaining the low cost of product is possible for
bata only if has widespread distribution and economies of scale work for the brand. Else,
even break even would be difficult for bata if it did not rely on its distribution prowess.
Distribution of Bata products has been based on thorough research and forecasting of market
conditions.

All the international markets were first studied for segments, cultures, economic conditions
and overall responsiveness and then entered. It has strategically placed its manufacturing
units across 27 locations, which serve their respective regions swiftly and without hassles
thereby making expansion highly economical, and at the same time promoting further
expansion. The strength of Bata in India is rural distribution. Even in rural India, showrooms
and dealerships of Bata are found to be available which has helped promote the brand even
further.

Promotions in the marketing mix of BATA

Bata, since the very beginning has not believed in extensive media or public related
promotion, so much so that one seldom comes across a television commercial or print
advertisements by Bata. It highly relies on its century long legacy, for which it has all the
loyalty of customer base that it aims and targets. By showing more promotions, Bata would

be increasing its cost. And this cost will then increase the overall price of the product, which
is a negative point for Bata considering that it is targeting the mass market.

Thus, almost an undifferentiated marketing strategy exists for Bata. Only major promotions it
offers is during seasonal sales and discount days, and the same is automatically
communicated within the market sphere through word of mouth by customers, which
ultimately allows it to save on promotion campaigns and in the end benefits customers only,
with low price shoes.

From time to time, Bata does introduce new product through TV commercials, but in general
it relies on its pull strategy and brand equity to bring more customers to the showroom. When
there was no adidas or reebok, Bata was present throughout the country. Thus it has fantastic
brand equity, and hence till date Bata is still a leading brand for shoes. However whether this
brand equity stays with the company, or withers away due to increase in competition is yet to
be seen.

STP :
Segment : Complete Coverage of the market

Target Group : People who prefer fashionable footwear

Positioning : Best Footwear Brand

Market Segmentation & Target Segment/s

The process of grouping the market is known as Segmentation. The market segmentation is
done based on the demographic and psychographic factors for Bata. The demographic factors
are age, sex and occupation. Personal Activities like hobby, social events (marathon), sports,
shopping and Personal interests like fashion, styles were considered in psychographic factors
and buyer behaviour which includes the changing trend in buying pattern for the
segmentation of market [ref-module book]. The foot wear industry market falls under the
ideal type market, as it covers all segments of customers. The customers share their needs in
this market. The target segments are classified into three categories namely Display Buyers,
Knowledge Buyers and Fashion/Stylish Buyers. The customers who come under these buyer
categories are children, students, adults, elderly people and sports people.
 CHAPTER - 3

THEORITICAL CONCEPT OF BATA

BRAND MANAGEMENT
Brand Management - Meaning and Important Concepts

Brand management begins with having a thorough knowledge of the term “brand”. It includes
developing a promise, making that promise and maintaining it. It means defining the brand,
positioning the brand, and delivering the brand. Brand management is nothing but an art of
creating and sustaining the brand. Branding makes customers committed to your business. A
strong brand differentiates your products from the competitors. It gives a quality image to
your business.

Brand management includes managing the tangible and intangible characteristics of brand. In
case of product brands, the tangibles include the product itself, price, packaging, etc. While in
case of service brands, the tangibles include the customers’ experience. The intangibles
include emotional connections with the product / service.

Branding is assembling of various marketing mix medium into a whole so as to give you an
identity. It is nothing but capturing your customers mind with your brand name. It gives an
image of an experienced, huge and reliable business.

It is all about capturing the niche market for your product / service and about creating a
confidence in the current and prospective customers’ minds that you are the unique solution
to their problem.

The aim of branding is to convey brand message vividly, create customer loyalty, persuade
the buyer for the product, and establish an emotional connectivity with the customers.
Branding forms customer perceptions about the product. It should raise customer
expectations about the product. The primary aim of branding is to create differentiation.

Strong brands reduce customers’ perceived monetary, social and safety risks in buying
goods/services. The customers can better imagine the intangible goods with the help of brand
name. Strong brand organizations have a high market share. The brand should be given good
support so that it can sustain itself in long run. It is essential to manage all brands and build
brand equity over a period of time. Here comes importance and usefulness of brand
management. Brand management helps in building a corporate image. A brand manager has
to oversee overall brand performance. A successful brand can only be created if the brand
management system is competent.

Following are the important concepts of brand management:

 Brand Name
 Brand Attributes
 Brand Positioning
 Brand Identity
 Sources of Brand Identity
 Brand Image
 Brand Identity vs Brand Image
 Brand Personality
 Brand Awareness
 Brand Loyalty
 Brand Association
 Building a Brand
 Brand Equity
 Brand Extension
 Co-branding

What is a Brand ?
Brands are different from products in a way that brands are “what the consumers buy”, while
products are “what concern/companies make”. Brand is an accumulation of emotional and
functional associations. Brand is a promise that the product will perform as per customer’s
expectations. It shapes customer’s expectations about the product. Brands usually have a
trademark which protects them from use by others. A brand gives particular information
about the organization, good or service, differentiating it from others in marketplace. Brand
carries an assurance about the characteristics that make the product or service unique. A
strong brand is a means of making people aware of what the company represents and what
are it’s offerings.

To a consumer, brand means and signifies:

Source of product
Delegating responsibility to the manufacturer of product

Lower risk

Less search cost

Quality symbol

Deal or pact with the product manufacturer

Symbolic device

Brands simplify consumers purchase decision. Over a period of time, consumers discover the
brands which satisfy their need. If the consumers recognize a particular brand and have
knowledge about it, they make quick purchase decision and save lot of time. Also, they save
search costs for product. Consumers remain committed and loyal to a brand as long as they
believe and have an implicit understanding that the brand will continue meeting their
expectations and perform in the desired manner consistently. As long as the consumers get
benefits and satisfaction from consumption of the product, they will more likely continue to
buy that brand. Brands also play a crucial role in signifying certain product features to
consumers.

To a seller, brand means and signifies:

Basis of competitive advantage

Way of bestowing products with unique associations

Way of identification to easy handling

Way of legal protection of products’ unique traits/features

Sign of quality to satisfied customer

Means of financial returns

A brand, in short, can be defined as a seller’s promise to provide consistently a unique set of
characteristics, advantages, and services to the buyers/consumers. It is a name, term, sign,
symbol or a combination of all these planned to differentiate the goods/services of one seller
or group of sellers from those of competitors. Some examples of well known brands are Mc
Donald’s’, Mercedes-Benz, Sony, Coca Cola, Kingfisher, etc.

A brand connects the four crucial elements of an enterprise- customers, employees,

management and shareholders. Brand is nothing but an assortment of memories in customers
mind. Brand represents values, ideas and even personality. It is a set of functional, emotional
and rational associations and benefits which have occupied target market’s mind.
Associations are nothing but the images and symbols associated with the brand or brand
benefits, such as, The Nike Swoosh, The Nokia sound, etc. Benefits are the basis for purchase
decision.

Brand name is one of the brand elements which helps the customers to identify and
differentiate one product from another. It should be chosen very carefully as it captures the
key theme of a product in an efficient and economical manner. It can easily be noticed and its
meaning can be stored and triggered in the memory instantly. Choice of a brand name
requires a lot of research. Brand names are not necessarily associated with the product. For
instance, brand names can be based on places (Air India, British Airways), animals or birds
(Dove soap, Puma), people (Louise Phillips, Allen Solly). In some instances, the company
name is used for all products (General Electric, LG).

Features of a Good Brand Name

A good brand name should have following characteristics:

It should be unique / distinctive (for instance- Kodak, Mustang)

It should be extendable.

It should be easy to pronounce, identified and memorized. (For instance-Tide)

It should give an idea about product’s qualities and benefits (For instance- Swift, Quickfix,
Lipguard).

It should be easily convertible into foreign languages.

It should be capable of legal protection and registration.

It should suggest product/service category (For instance Newsweek).

It should indicate concrete qualities (For instance Firebird).

It should not portray bad/wrong meanings in other categories. (For instance NOVA is a poor
name for a car to be sold in Spanish country, because in Spanish it means “doesn’t go”).

Process of Selecting a renowned and successful Brand Name

Define the objectives of branding in terms of six criterions - descriptive, suggestive,

compound, classical, arbitrary and fanciful. It Is essential to recognize the role of brand
within the corporate branding strategy and the relation of brand to other brand and products.
It is also essential to understand the role of brand within entire marketing program as well as
a detailed description of niche market must be considered.

Generation of multiple names - Any potential source of names can be used; organization,
management and employees, current or potential customers, agencies and professional
consultants.

Screening of names on the basis of branding objectives and marketing considerations so as to

have a more synchronized list - The brand names must not have connotations, should be
easily pronounceable, should meet the legal requirements etc.

Gathering more extensive details on each of the finalized names - There should be extensive
international legal search done. These searches are at times done on a sequential basis
because of the expense involved.

Conducting consumer research - Consumer research is often conducted so as to confirm

management expectations as to the remembrance and meaningfulness of the brand names.
The features of the product, its price and promotion may be shown to the consumers so that
they understand the purpose of the brand name and the manner in which it will be used.
Consumers can be shown actual 3-D packages as well as animated advertising or boards.
Several samples of consumers must be surveyed depending on the niche market involved.

On the basis of the above steps, management can finalize the brand name that maximizes the
organization’s branding and marketing objectives and then formally register the brand name.

Brand Positioning
Brand positioning refers to “target consumer’s” reason to buy your brand in preference to
others. It is ensures that all brand activity has a common aim; is guided, directed and
delivered by the brand’s benefits/reasons to buy; and it focusses at all points of contact with
the consumer.

Brand positioning must make sure that:

Is it unique/distinctive vs. competitors ?

Is it significant and encouraging to the niche market ?

Is it appropriate to all major geographic markets and businesses ?

Is the proposition validated with unique, appropriate and original products ?

Is it sustainable - can it be delivered constantly across all points of contact with the
consumer ?
Is it helpful for organization to achieve its financial goals ?

Is it able to support and boost up the organization ?

In order to create a distinctive place in the market, a niche market has to be carefully chosen
and a differential advantage must be created in their mind. Brand positioning is a medium
through which an organization can portray it’s customers what it wants to achieve for them
and what it wants to mean to them. Brand positioning forms customer’s views and opinions.

Brand Positioning can be defined as an activity of creating a brand offer in such a manner
that it occupies a distinctive place and value in the target customer’s mind. For instance-
Kotak Mahindra positions itself in the customer’s mind as one entity- “Kotak ”- which can
provide customized and one-stop solution for all their financial services needs. It has an
unaided top of mind recall. It intends to stay with the proposition of “Think Investments,
Think Kotak”. The positioning you choose for your brand will be influenced by the
competitive stance you want to adopt.

Brand Positioning involves identifying and determining points of similarity and difference to
ascertain the right brand identity and to create a proper brand image. Brand Positioning is the
key of marketing strategy. A strong brand positioning directs marketing strategy by
explaining the brand details, the uniqueness of brand and it’s similarity with the competitive
brands, as well as the reasons for buying and using that specific brand. Positioning is the base
for developing and increasing the required knowledge and perceptions of the customers. It is
the single feature that sets your service apart from your competitors. For instance- Kingfisher
stands for youth and excitement. It represents brand in full flight.

There are various positioning errors, such as-

1. Under positioning- This is a scenario in which the customer’s have a blurred and
unclear idea of the brand.
2. Over positioning- This is a scenario in which the customers have too limited a
awareness of the brand.
3. Confused positioning- This is a scenario in which the customers have a confused
opinion of the brand.
4. Double Positioning- This is a scenario in which customers do not accept the claims of
a brand.

Brand Identity
Brand identity stems from an organization, i.e., an organization is responsible for creating a
distinguished product with unique characteristics. It is how an organization seeks to identify
itself. It represents how an organization wants to be perceived in the market. An organization
communicates its identity to the consumers through its branding and marketing strategies. A
brand is unique due to its identity. Brand identity includes following elements - Brand vision,
brand culture, positioning, personality, relationships, and presentations.

Brand identity is a bundle of mental and functional associations with the brand. Associations
are not “reasons-to-buy” but provide familiarity and differentiation that’s not replicable
getting it. These associations can include signature tune(for example - Britannia “ting-ting-ta-
ding”), trademark colours (for example - Blue colour with Pepsi), logo (for example - Nike),
tagline (for example - Apple’s tagline is “Think different”),etc.

Brand identity is the total proposal/promise that an organization makes to consumers. The
brand can be perceived as a product, a personality, a set of values, and a position it occupies
in consumer’s minds. Brand identity is all that an organization wants the brand to be
considered as. It is a feature linked with a specific company, product, service or individual. It
is a way of externally expressing a brand to the world.

Brand identity is the noticeable elements of a brand (for instance - Trademark colour, logo,
name, symbol) that identify and differentiates a brand in target audience mind. It is a crucial
means to grow your company’s brand.

Brand identity is the aggregation of what all you (i.e. an organization) do. It is an
organizations mission, personality, promise to the consumers and competitive advantages. It
includes the thinking, feelings and expectations of the target market/consumers. It is a means
of identifying and distinguishing an organization from another. An organization having
unique brand identity have improved brand awareness, motivated team of employees who
feel proud working in a well branded organization, active buyers, and corporate style. Brand
identity leads to brand loyalty, brand preference, high credibility, good prices and good
financial returns. It helps the organization to express to the customers and the target market
the kind of organization it is. It assures the customers again that you are who you say you are.
It establishes an immediate connection between the organization and consumers. Brand
identity should be sustainable. It is crucial so that the consumers instantly correlate with your
product/service.
Brand identity should be futuristic, i.e, it should reveal the associations aspired for the brand.
It should reflect the durable qualities of a brand. Brand identity is a basic means of consumer
recognition and represents the brand’s distinction from it’s competitors.

Brand Image
Brand image is the current view of the customers about a brand. It can be defined as a unique
bundle of associations within the minds of target customers. It signifies what the brand
presently stands for. It is a set of beliefs held about a specific brand. In short, it is nothing but
the consumers’ perception about the product. It is the manner in which a specific brand is
positioned in the market. Brand image conveys emotional value and not just a mental image.
Brand image is nothing but an organization’s character. It is an accumulation of contact and
observation by people external to an organization. It should highlight an organization’s
mission and vision to all. The main elements of positive brand image are- unique logo
reflecting organization’s image, slogan describing organization’s business in brief and brand
identifier supporting the key values.

Brand image is the overall impression in consumers’ mind that is formed from all sources.
Consumers develop various associations with the brand. Based on these associations, they
form brand image. An image is formed about the brand on the basis of subjective perceptions
of associations bundle that the consumers have about the brand. Volvo is associated with
safety. Toyota is associated with reliability.

The idea behind brand image is that the consumer is not purchasing just the product/service
but also the image associated with that product/service. Brand images should be positive,
unique and instant. Brand images can be strengthened using brand communications like
advertising, packaging, word of mouth publicity, other promotional tools, etc.

Brand image develops and conveys the product’s character in a unique manner different from
its competitor’s image. The brand image consists of various associations in consumers’ mind
- attributes, benefits and attributes. Brand attributes are the functional and mental connections
with the brand that the customers have. They can be specific or conceptual. Benefits are the
rationale for the purchase decision. There are three types of benefits: Functional benefits -
what do you do better (than others ),emotional benefits - how do you make me feel better
(than others), and rational benefits/support - why do I believe you(more than others). Brand
attributes are consumers overall assessment of a brand.
Brand image has not to be created, but is automatically formed. The brand image includes
products' appeal, ease of use, functionality, fame, and overall value. Brand image is actually
brand content. When the consumers purchase the product, they are also purchasing it’s image.
Brand image is the objective and mental feedback of the consumers when they purchase a
product. Positive brand image is exceeding the customers expectations. Positive brand image
enhances the goodwill and brand value of an organization.

To sum up, “Brand image” is the customer’s net extract from the brand.

Brand Identity vs Brand Image

Brand Identity & Brand Image

1 Brand identity develops from the source or the company. Brand image is perceived
by the receiver or the consumer.

2 Brand message is tied together in terms of brand identity. Brand message is untied
by the consumer in the form of brand image.

3 The general meaning of brand identity is “who you really are?” The general
meaning of brand image is “How market perceives you?”

4 It’s nature is that it is substance oriented or strategic.It’s nature is that it is appearance

oriented or tactical.

5 Brand identity symbolizes firms’ reality. Brand image symbolizes perception of

consumers

6 Brand identity represents “your desire”. Brand image represents “others view”

7 It is enduring. It is superficial.

8 Identity is looking ahead. Image is looking back.

9 Identity is active. Image is passive.

10 It signifies “where you want to be”. It signifies “what you have got”.

11 It is total promise that a company makes to consumers. It is total consumers’

perception about the brand.

 Focus on shaping your brand identity, brand image will follow.

What is Brand Personality ?
Brand personality is the way a brand speaks and behaves. It means assigning human
personality traits/characteristics to a brand so as to achieve differentiation. These
characteristics signify brand behaviour through both individuals representing the brand (i.e.
it’s employees) as well as through advertising, packaging, etc. When brand image or brand
identity is expressed in terms of human traits, it is called brand personality. For instance -
Allen Solley brand speaks the personality and makes the individual who wears it stand apart
from the crowd. Infosys represents uniqueness, value, and intellectualism.

Brand personality is nothing but personification of brand. A brand is expressed either as a

personality who embodies these personality traits (For instance - Shahrukh Khan and Airtel,
John Abraham and Castrol) or distinct personality traits (For instance - Dove as honest,
feminist and optimist; Hewlett Packard brand represents accomplishment, competency and
influence). Brand personality is the result of all the consumer’s experiences with the brand. It
is unique and long lasting.

Brand personality must be differentiated from brand image, in sense that, while brand image
denote the tangible (physical and functional) benefits and attributes of a brand, brand
personality indicates emotional associations of the brand. If brand image is comprehensive
brand according to consumers’ opinion, brand personality is that aspect of comprehensive
brand which generates it’s emotional character and associations in consumers’ mind.

Brand personality develops brand equity. It sets the brand attitude. It is a key input into the
look and feel of any communication or marketing activity by the brand. It helps in gaining
thorough knowledge of customers feelings about the brand. Brand personality differentiates
among brands specifically when they are alike in many attributes. For instance - Sony versus
Panasonic. Brand personality is used to make the brand strategy lively, i.e, to implement
brand strategy. Brand personality indicates the kind of relationship a customer has with the
brand. It is a means by which a customer communicates his own identity.

Brand personality and celebrity should supplement each other. Trustworthy celebrity ensures
immediate awareness, acceptability and optimism towards the brand. This will influence
consumers’ purchase decision and also create brand loyalty. For instance - Bollywood actress
Priyanka Chopra is brand ambassador for J.Hampstead, international line of premium shirts.

Brand personality not only includes the personality features/characteristics, but also the
demographic features like age, gender or class and psychographic features. Personality traits
are what the brand exists for.
What is Brand Awareness ?
Brand awareness is the probability that consumers are familiar about the life and availability
of the product. It is the degree to which consumers precisely associate the brand with the
specific product. It is measured as ratio of niche market that has former knowledge of brand.
Brand awareness includes both brand recognition as well as brand recall. Brand recognition is
the ability of consumer to recognize prior knowledge of brand when they are asked questions
about that brand or when they are shown that specific brand, i.e., the consumers can clearly
differentiate the brand as having being earlier noticed or heard. While brand recall is the
potential of customer to recover a brand from his memory when given the product
class/category, needs satisfied by that category or buying scenario as a signal. In other words,
it refers that consumers should correctly recover brand from the memory when given a clue
or he can recall the specific brand when the product category is mentioned. It is generally
easier to recognize a brand rather than recall it from the memory.

Brand awareness is improved to the extent to which brand names are selected that is simple
and easy to pronounce or spell; known and expressive; and unique as well as distinct. For
instance - Coca Cola has come to be known as Coke.

There are two types of brand awareness:

Aided awareness- This means that on mentioning the product category, the customers
recognize your brand from the lists of brands shown.

Top of mind awareness (Immediate brand recall)- This means that on mentioning the product
category, the first brand that customer recalls from his mind is your brand.

The relative importance of brand recall and recognition will rely on the degree to which
consumers make product-related decisions with the brand present or not. For instance - In a
store, brand recognition is more crucial as the brand will be physically present. In a scenario
where brands are not physically present, brand recall is more significant (as in case of
services and online brands).

Building brand awareness is essential for building brand equity. It includes use of various
renowned channels of promotion such as advertising, word of mouth publicity, social media
like blogs, sponsorships, launching events, etc. To create brand awareness, it is important to
create reliable brand image, slogans and taglines. The brand message to be communicated
should also be consistent. Strong brand awareness leads to high sales and high market share.
Brand awareness can be regarded as a means through which consumers become acquainted
and familiar with a brand and recognize that brand.
Brand Loyalty
Brand Loyalty is a scenario where the consumer fears purchasing and consuming product
from another brand which he does not trust. It is measured through methods like word of
mouth publicity, repetitive buying, price sensitivity, commitment, brand trust, customer
satisfaction, etc. Brand loyalty is the extent to which a consumer constantly buys the same
brand within a product category. The consumers remain loyal to a specific brand as long as it
is available. They do not buy from other suppliers within the product category. Brand loyalty
exists when the consumer feels that the brand consists of right product characteristics and
quality at right price. Even if the other brands are available at cheaper price or superior
quality, the brand loyal consumer will stick to his brand.

Brand loyal consumers are the foundation of an organization. Greater loyalty levels lead to
less marketing expenditure because the brand loyal customers promote the brand positively.
Also, it acts as a means of launching and introducing more products that are targeted at same
customers at less expenditure. It also restrains new competitors in the market. Brand loyalty
is a key component of brand equity.

Brand loyalty can be developed through various measures such as quick service, ensuring
quality products, continuous improvement, wide distribution network, etc. When consumers
are brand loyal they love “you” for being “you”, and they will minutely consider any other
alternative brand as a replacement. Examples of brand loyalty can be seen in US where true
Apple customers have the brand's logo tattooed onto their bodies. Similarly in Finland, Nokia
customers remained loyal to Nokia because they admired the design of the handsets or
because of user- friendly menu system used by Nokia phones.

Brand loyalty can be defined as relative possibility of customer shifting to another brand in
case there is a change in product’s features, price or quality. As brand loyalty increases,
customers will respond less to competitive moves and actions. Brand loyal customers remain
committed to the brand, are willing to pay higher price for that brand, and will promote their
brand always. A company having brand loyal customers will have greater sales, less
marketing and advertising costs, and best pricing. This is because the brand loyal customers
are less reluctant to shift to other brands, respond less to price changes and self- promote the
brand as they perceive that their brand have unique value which is not provided by other
competitive brands.
Brand loyalty is always developed post purchase. To develop brand loyalty, an organization
should know their niche market, target them, support their product, ensure easy access of
their product, provide customer satisfaction, bring constant innovation in their product and
offer schemes on their product so as to ensure that customers repeatedly purchase the
product.

Brand Association
Brand Associations are not benefits, but are images and symbols associated with a brand or a
brand benefit. For example- The Nike Swoosh, Nokia sound, Film Stars as with “Lux”,
signature tune Ting-ting-ta-ding with Britannia, Blue colour with Pepsi, etc. Associations are
not “reasons-to-buy” but provide acquaintance and differentiation that’s not replicable. It is
relating perceived qualities of a brand to a known entity. For instance- Hyatt Hotel is
associated with luxury and comfort; BMW is associated with sophistication, fun driving, and
superior engineering. Most popular brand associations are with the owners of brand, such as -
Bill Gates and Microsoft, Reliance and Dhirubhai Ambani.

Brand association is anything which is deep seated in customer’s mind about the brand.
Brand should be associated with something positive so that the customers relate your brand to
being positive. Brand associations are the attributes of brand which come into consumers
mind when the brand is talked about. It is related with the implicit and explicit meanings
which a consumer relates/associates with a specific brand name. Brand association can also
be defined as the degree to which a specific product/service is recognized within it’s
product/service class/category. While choosing a brand name, it is essential that the name
chosen should reinforce an important attribute or benefit association that forms it’s product
positioning. For instance - Power book.

Brand associations are formed on the following basis:

Customers contact with the organization and it’s employees;

Advertisements;

Word of mouth publicity;

Price at which the brand is sold;

Celebrity/big entity association;

Quality of the product;

Products and schemes offered by competitors;

Product class/category to which the brand belongs;

POP ( Point of purchase) displays; etc

Positive brand associations are developed if the product which the brand depicts is durable,
marketable and desirable. The customers must be persuaded that the brand possess the
features and attributes satisfying their needs. This will lead to customers having a positive
impression about the product. Positive brand association helps an organization to gain
goodwill, and obstructs the competitor’s entry into the market.

Brand Promise - Our brand is a promise of what we deliver

Brand evokes the responses. There are many people who love their Apple iPod or love their
car etc. There are certain feelings that come to your mind when you think about your favorite
brands. People expect that these brands should demonstrate brand promises every time
whenever they are, encountered. Inconsistencies in the performance of services can lead to
damage in further relations. This can cause a customer to select some other brand.

Brand promise is what you say to the customer and what is to be delivered. If you are not able
to meet the expectations of the customer, your business will either flounder or die. If you are
not able to deliver the brand promise you will not be able to meet the expectations that have
been created in the customers mind.

There are three major mistakes that the business leaders make while executing and
developing the brand promise:

The first mistake is when you refuse to recognize the customer expectations that are created
in customers mind before it comes in contact with that particular brand. The customers are
very easily able to realize your brand promise by the business you are dealing with. For
example, if you have a gourmet restaurant then the customers will have a image in their mind
that it will different from the local restaurant. This is one of the major reason, why one should
work for every smallest detail. For example, the image of a gourmet restaurant does not
include plastic menus or paper placemats.

The second major mistake is to implement a system which gives a negative experience to the
customer. Business leaders work on creating efficient results for saving time and money.
Human beings are self-centered creatures with a thought in their mind to save money and
time for us. For example, a customers asks do you accept credit card? Do you accept all
credit cards or only master card and visa? If you don’t accept these cards, does it make any
difference in the cost? Its just that you are losing sales. Then what are the other services you
are giving to the customer in place which is the attraction for the customers. Any small
inconvenience which will force the customer to say that “you are not completely service
oriented” and encourages the customer to some other brand.

The third major mistake is that when you are not able to hire the best candidate. You easily
hire anyone who applies and don’t even put some efforts to train them gives a really terrible
experience to the customers. Brand promises are delivered by the staff. If your goal is to be a
business leader you will invest time to train the staff. If you select a person who is very polite
and does not even know how to dress up for an interview then you competition should send a
thank you card for all the business you will send his way.

People who want to become the business leader understand they are a great product brands.
They are authentic, dependable and reliable. Their icon is their name. Delivering the best of
themselves is their brand promise. Do you want to become winner at working? Then, deliver
the brand promise.

Brand Equity - Meaning and Measuring Brand Equity

Brand Equity is the value and strength of the Brand that decides its worth. It can also be
defined as the differential impact of brand knowledge on consumers response to the Brand
Marketing. Brand Equity exists as a function of consumer choice in the market place. The
concept of Brand Equity comes into existence when consumer makes a choice of a product or
a service. It occurs when the consumer is familiar with the brand and holds some favourable
positive strong and distinctive brand associations in the memory.

Brand Equity can be determined by measuring:

Returns to the Share-Holders.

Brand Extension - Meaning, Advantages

Brand Extension is the use of an established brand name in new product categories. This new
category to which the brand is extended can be related or unrelated to the existing product
categories. A renowned/successful brand helps an organization to launch products in new
categories more easily. For instance, Nike’s brand core product is shoes. But it is now
extended to sunglasses, soccer balls, basketballs, and golf equipments. An existing brand that
gives rise to a brand extension is referred to as parent brand. If the customers of the new
business have values and aspirations synchronizing/matching those of the core business, and
if these values and aspirations are embodied in the brand, it is likely to be accepted by
customers in the new business.
Extending a brand outside its core product category can be beneficial in a sense that it helps
evaluating product category opportunities, identifies resource requirements, lowers risk, and
measures brand’s relevance and appeal.

Brand extension may be successful or unsuccessful.

Instances where brand extension has been a success are-

Wipro which was originally into computers has extended into shampoo, powder, and soap.

Mars is no longer a famous bar only, but an ice-cream, chocolate drink and a slab of
chocolate.

Instances where brand extension has been a failure are-

In case of new Coke, Coca Cola has forgotten what the core brand was meant to stand for. It
thought that taste was the only factor that consumer cared about. It was wrong. The time and
money spent on research on new Coca Cola could not evaluate the deep emotional attachment
to the original Coca- Cola.

Rasna Ltd. - Is among the famous soft drink companies in India. But when it tried to move
away from its niche, it hasn’t had much success. When it experimented with fizzy fruit drink
“Oranjolt”, the brand bombed even before it could take off. Oranjolt was a fruit drink in
which carbonates were used as preservative. It didn’t work out because it was out of
synchronization with retail practices. Oranjolt need to be refrigerated and it also faced quality
problems. It has a shelf life of three-four weeks, while other soft- drinks assured life of five
months.

Advantages of Brand Extension

Brand Extension has following advantages:

It makes acceptance of new product easy.

It increases brand image.

The risk perceived by the customers reduces.

The likelihood of gaining distribution and trial increases. An established brand name
increases consumer interest and willingness to try new product having the established brand
name.

The efficiency of promotional expenditure increases. Advertising, selling and promotional

costs are reduced. There are economies of scale as advertising for core brand and its
extension reinforces each other.
Cost of developing new brand is saved.

Consumers can now seek for a variety.

There are packaging and labeling efficiencies.

The expense of introductory and follow up marketing programs is reduced.

There are feedback benefits to the parent brand and the organization.

The image of parent brand is enhanced.

It revives the brand.

It allows subsequent extension.

Brand meaning is clarified.

It increases market coverage as it brings new customers into brand franchise.

Customers associate original/core brand to new product, hence they also have quality
associations.

Co-branding - Meaning, Types and Advantages

What is Co-branding

Co branding is the utilization of two or more brands to name a new product. The ingredient
brands help each other to achieve their aims. The overall synchronization between the brand
pair and the new product has to be kept in mind. Example of co-branding - Citibank co-
branded with MTV to launch a co-branded debit card. This card is beneficial to customers
who can avail benefits at specific outlets called MTV Citibank club.

Types of Co-branding
Co-branding is of two types: Ingredient co-branding and Composite co-branding.

Ingredient co-branding implies using a renowned brand as an element in the production of

another renowned brand. This deals with creation of brand equity for materials and parts that
are contained within other products. The ingredient/constituent brand is subordinate to the
primary brand. For instance - Dell computers has co-branding strategy with Intel processors.
The brands which are ingredients are usually the company’s biggest buyers or present
suppliers. The ingredient brand should be unique. It should either be a major brand or should
be protected by a patent. Ingredient co-branding leads to better quality products, superior
promotions, more access to distribution channel and greater profits. The seller of ingredient
brand enjoys long-term customer relations. The brand manufacture can benefit by having a
competitive advantage and the retailer can benefit by enjoying a promotional help from
ingredient brand.

Composite co-branding refers to use of two renowned brand names in a way that they can
collectively offer a distinct product/ service that could not be possible individually. The
success of composite branding depends upon the favourability of the ingredient brands and
also upon the extent on complementarities between them.

Advantages and Disadvantages of Co-branding

Co-branding has various advantages, such as - risk-sharing, generation of royalty income,

more sales income, greater customer trust on the product, wide scope due to joint advertising,
technological benefits, better product image by association with another renowned brand, and
greater access to new sources of finance.
 CHAPTER – 4
FINDINGS, ANALYSIS, INTERPRETATION