Case Study: Bata: Production Management and Strategy Through The Ages

CASE STUDY
BATA : PRODUCTION MANAGEMENT AND STRATEGY

THROUGH THE AGES
BY
PRIYA
APARNA
MEHAK
TUSHAR
WHY BATA…..
• REMEMBER YOUR PARENTS BUYING YOU THESE SHOES WHEN YOU
WERE A KID?
• THE INDIAN MIDDLE-CLASS BRAND.
• BATA STARTED OPERATIONS FROM KOLKATA. LEATHER-BASED
FACTORY IN PATNA CALLED BATAGANJ.
WHY BATA…..
• A UNIVERSITY IN CZECH REPUBLIC CALLED THE TOMAS BATA
UNIVERSITY IN 2001.
• TILL 1930S, SHOES FOR THE BRITISH TROOPS WERE MOSTLY
IMPORTED FROM JAPAN. WHEN BATA STARTED MANUFACTURING
IN EASTERN INDIA, THE DEMAND WAS OVERWHELMING.
WHY BATA…..
• BATANAGAR.
• BATA CHOWK.
• BATA IS A FOREIGN MULTINATIONAL BRAND.
HISTORICAL BACKGROUND
 EST ON 24 AUGUST 1894 BY THOMAS BATA.
TOMÁŠ BAŤA (1876-1932)

TOMÁŠ BAŤA, BROTHER ANTONÍN
& SISTER ANNA
 THOMAS BATA UNDER
FINANCIAL CRICES.
 NO MONEY TO PURCHASE
LEATHER.
 INSTEAD, HE PURCHASED
CANVAS AND STARTED
PRODUCING CANVAS SHOES.
 IDEA WAS A GREAT HIT.
 THIS IDEA CHANGED THE

SITUATION OF THOMAS BATA.
 THOMAS BATA WANTED TO

UPGRADE HIS PRODUCTION
PROCESS.
 1904- HE VISITED AMERICA AND

LATER ADOPTED MASS
PRODUCTION TECH.
 WITHIN FEW YEARS, BATA

BECAME THE MOST POPULAR
BRAND IN EUROPE.
 FOOTWEAR WERE KNOWN FOR

SIMPLICITY, LIGHT WEIGHT
STYLE & AFFORDABLE PRICES.
 FINANCIAL GROWTH STARTED

INCREASING.
 BATA STARTED EXPANTION OF

THEIR PRODUCT WORLDWIDE.
 DURING FIRST WORLD WAR,

BATA GOT ORDERS FROM
VARIOUS COUNTRIES.
 FURTHER EST THEIR BRAND

NAME/ REPUTATION FOR
DURABILITY.
POST 1ST WORLD WAR…
 SEVERE WORLDWIDE
RECESSION.
 DECREASE IN DEMAND &

PRODUCTION.
 MR THOMAS BATA HANDLED

THE SITUATION CLEAVERLY.
MEHAK
POST 1ST WORLD WAR…STRATEGY ADOPTED
 THOMAS BATA REDUCED PRICES OF

PRODUCTS BY HALF.
 HE OFFERED FWG TO HIS

EMPLOYEES-
 FOOD
 CLOTHING
 MEDICAL
 ACCOMODATION
 IN ADDN, DISTRIBUTED SHARE OF

PROFIT TO HIS EMPLOYEES.
 COST REDUCTION BY-

 RAW MTRL
 LABOUR
 OTHER OVERHEAD COSTS.
 EST BATA TOWNS TO PRODUCE

MAX RAW MTRLS.
 IN HOUSE FOOD PRODUCTION

BY FARMING.
 OWN POWER PLANTS.
 COST CONTROL.
 STARTED SELLING PRODUCTS

WITH MIN MARGIN.
POST 1ST WORLD WAR…RESPONSE
 SUPER POSITIVE RESPONSE BY

CUSTOMERS.
 WHEN OTHER SHOE MAKING

COMPANIES WERE ABOUT TO
CLOSE THEIR PRODUCTION,
BATA WAS EARNING PROFIT.
PRICING STRATEGY FOR MASS PENETRATION
PSYCHOLOGICAL PRICING
APARNA
BATA JUNIOR : JAN ANTONIN BATA
 1932- THOMAS BATA DIED.
 SON, JOHN ANTONIN (JR BATA)

TOOK OVER.
 JR BATA LIKE HIS FATHER WAS

COMMITTED TOWARDS
IMPROVEMENT OF LIVING
STANDARDS OF CUSTOMERS &
VALUE FOR MONEY.
 EXPANDED PRODUCTS
WORLDWIDE.
 IN FEW YEARS, BATA

BECAME No 1 FOOTWEAR
IN NORTH AMERICA,
ASIA, EUROPE & AFRICA.
 NEXT FEW YEARS- No 1

BRAND IN THE WORLD.
 JR BATA ALSO FOCUSED

ON-
 ECONOMY OF SALE
 LOW PRODUCTION COST
BATA IN INDIA
 1931- ENTERED IN INDIA.
 EST BATANAGAR TOWN NEAR

CALCUTTA.
 LEATHER FACTORY – BATAGANJ

NEAR PATNA.
 LATER EST FACTORIES AT

BANGALORE & HOSUR (TN).
BATA IN INDIA
 WITHIN FEW YEARS EST RETAIL

STORES IN ALL MAJOR CITIES AT
PRIME LOCATIOS.
 5000+ DISTRIBUTERS.
 EMERGED AS A FAMILY BRAND.

BATA IN INDIA
 FOOTWEAR INDUSTRY- INDIA IS

SECOND IN THE WORLD, AFTER CHINA.
 1/3RD COVERED BY ORGANISED SECT,

BALANCE BY UNORGANISED.
 BATA- A FAMILY BRAND & EVERY

INDIAN CAN ASSOCIATE HIM/HERSELF
WITH BATA.
 BETWEEN 80s-90s, BATA WAS RULING

THE FOOTWEAR MARKET.
 BY 90s- 1200 RETAIL STORES.

BRAND VALUE OF BATA IN INDIA
 BUILD RELATIONSHIP PSYCHOLOGY.
 GENERATION OF LOYAL CUSTOMERS.
 DURING THOSE TIME, PEOPLE WERE

HAVING LESS PURCHASING INCOME.
 PEOPLE WERE LESS FATION CENTRIC.

BRAND VALUE OF BATA IN INDIA
 BATA ENCASHED THE SITUATION BY

TARGETING MIDDLE CLASS.
 BATA WAS KNOWN FOR RELIABILITY/

QUALITY WITH LOW PRICE PRODUCTS.
 NO ADVERTISEMENTS.
 BATA ALSO STARTED OUTSOURCING ITS

PRODUCTS.
PRIYA
DECLINE PHASE : BATA
 LATE 90s- REPUTATION OF BATA & ITS
PRODUCTS STARTED DECLINING.
 PURCHASING POWER OF A COMMAN MAN

INCREASED.
 EMERGING FATION TRENDS.
 BATA FAILED TO RESPOND THE NEED OF

CUSTOMERS.
 CUSTOMERS STARTED SHIFTING TOWARDS

OTHER BRANDS.
 CHINA/ OTHER UNORGANISED MARKET

TOOK ADVANTAGE OF THE SITUATION.
 OTHER INTERNATIONAL BRANDS MADE FELT

THEIR PRESENCE.
 BATA FAILED TO RESPOND TIMELY.
 LOW SHARE IN MARKET.
 BY 2000, BATA WAS STRUGGLING FOR

SURVIVAL .
 RELAXO, ACTION, PARAGON, KHADIM WERE

OFFERING BETTER VARIETY IN SAME COST.
 FOREIGN BRANDS LIKE NIKE, ADDIDAS,

REEBOK WERE FAVOURATE AMONG UPPER
MIDDEL YOUTH.
RECOVERY STRATEGY : BATA
 NET DISPOSEBLE INCOME INCREASED- BATA

TO ALSO FOCUS ON UPPER MIDDLE &
UPPER INCOME CLASS.
 PERCEPTION OF CUSTOMERS – “BATA IS A

CHEAP BRAND.”
 FOOTWEAR FOR FATIONABLE INDIA.
 FOOTWARE FOR ALL AGE GROUPS.
 MORE FOCUS ON CASUAL SHOES.

QUERIES FROM AUDIENCE……
JAI HIND

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CASE STUDY

BATA : PRODUCTION MANAGEMENT AND STRATEGY

TOMÁŠ BAŤA (1876-1932)

 IDEA WAS A GREAT HIT.

 THIS IDEA CHANGED THE

 THOMAS BATA WANTED TO

 1904- HE VISITED AMERICA AND

 WITHIN FEW YEARS, BATA

 FOOTWEAR WERE KNOWN FOR

 FINANCIAL GROWTH STARTED

 BATA STARTED EXPANTION OF

 DURING FIRST WORLD WAR,

 FURTHER EST THEIR BRAND

 DECREASE IN DEMAND &

 MR THOMAS BATA HANDLED

 THOMAS BATA REDUCED PRICES OF

 HE OFFERED FWG TO HIS

 IN ADDN, DISTRIBUTED SHARE OF

 COST REDUCTION BY-

 EST BATA TOWNS TO PRODUCE

 IN HOUSE FOOD PRODUCTION

 OWN POWER PLANTS.

 STARTED SELLING PRODUCTS

 SUPER POSITIVE RESPONSE BY

 WHEN OTHER SHOE MAKING

 1932- THOMAS BATA DIED.

 SON, JOHN ANTONIN (JR BATA)

 JR BATA LIKE HIS FATHER WAS

 IN FEW YEARS, BATA

 NEXT FEW YEARS- No 1

 JR BATA ALSO FOCUSED

 1931- ENTERED IN INDIA.

 EST BATANAGAR TOWN NEAR

 LEATHER FACTORY – BATAGANJ

 LATER EST FACTORIES AT

 WITHIN FEW YEARS EST RETAIL

 EMERGED AS A FAMILY BRAND.

 FOOTWEAR INDUSTRY- INDIA IS

 1/3RD COVERED BY ORGANISED SECT,

 BATA- A FAMILY BRAND & EVERY

 BETWEEN 80s-90s, BATA WAS RULING

 BY 90s- 1200 RETAIL STORES.

 BUILD RELATIONSHIP PSYCHOLOGY.

 GENERATION OF LOYAL CUSTOMERS.

 DURING THOSE TIME, PEOPLE WERE

 PEOPLE WERE LESS FATION CENTRIC.

 BATA ENCASHED THE SITUATION BY

 BATA WAS KNOWN FOR RELIABILITY/

 BATA ALSO STARTED OUTSOURCING ITS

 PURCHASING POWER OF A COMMAN MAN

 EMERGING FATION TRENDS.

 BATA FAILED TO RESPOND THE NEED OF

 CUSTOMERS STARTED SHIFTING TOWARDS

 CHINA/ OTHER UNORGANISED MARKET

 OTHER INTERNATIONAL BRANDS MADE FELT

 BATA FAILED TO RESPOND TIMELY.

 LOW SHARE IN MARKET.

 BY 2000, BATA WAS STRUGGLING FOR

 RELAXO, ACTION, PARAGON, KHADIM WERE

 FOREIGN BRANDS LIKE NIKE, ADDIDAS,

 NET DISPOSEBLE INCOME INCREASED- BATA

 PERCEPTION OF CUSTOMERS – “BATA IS A