BATA Final

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Bata Shoes Lahore Pakistan are using some techniqu…

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SUBMITTED BY: FARHAN MAHMOOD (GL) (ME-01083-009)

NADEEN MOHSIN (ME-01083-009)

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EXECUTIVE SUMMARY

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STAGE 03:

CONCEPT/PROJECT EVALUATION

We select the stage Concept/Project Evaluation because Bata

Shoes Lahore Pakistan are using some techniques for finding
opportunities and evaluation of new initiatives among there
competitors. They are also using a technique for testing its concept
before development and launch new product in the market. They
are also using a technique for evaluate the organization capabilities
before developing product. In this project we discuss all that
techniques which are used by Bata, discuss about the draw backs
and give the recommendations on these techniques for
improvement.

 For finding opportunities and evaluation of new initiatives Bata uses the Price Range
Strategy. By using this technique Bata find the gaps for new initiatives and its position
among competitors.

 For the concept testing before developing and launch a new product, Bata capture the
views of customers through questioning.

 For evaluate the organization capabilities, Bata’s managers held a meeting where they
discuss about capabilities. They are able or not for developing new product.

So, we will discuss each technique one by one.

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1. PRICE RANGE STRATEGY:

Bata Shoes Ltd using Price Range Strategy for finding the opportunities and evaluation the new
initiatives among competitors. Here is the question;

How Bata use this technique?

Bata prepare one sheet on which all the competitors’ products, brands, category and prices as
well as Bata’s products, brands, category and prices are listed. With the help of this format Bata
find out the new product or new category in new price range which is missing in Bata and
competitors offers to their customers.

Bata has different brands namely as;

 Bata

 Wienbrener

 Power

 B-First

 Bata Comfit

 Bubble & Gambles

 Leena (Newly Launch in this Summer)

So, for explore the Price Range Strategy technique, we use the example of LEENA which is
newly launch in the market by Bata. Leena is the latest ladies brand of Bata in which Bata offers
the huge range of sleepers for ladies in different colours variation and designs.

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Leena

Bata find this opportunity and evaluate it among competitors through price range strategy. Bata
has different competitors like;

 Servis

 Stylo

 English Shoes

 Delhouse

 Elegant Shoes etc.

If we talk about Leena, the price range of Leena in the market for customers is 299-499 Pk
Rupees. Before the idea generation of Leena, the competitors have the product in this range.

Like Servis, Stylo and others offers ladies sleepers in this price range (299-499). Bata analysis
all the competitors and they find that in ladies sleeper category, the competitors of Bata give this
category to their customers in low price which is 299-499 Pk Rupees.

Here we take example of one competitor, for example Servis and make a sheet in which we
select all brands and categories which Bata and Service offers to their valued customers. By the
help of this sheet we will understand that how Bata use this technique.

According to this sheet, Bata missing different categories in different brands like Servis offers
Sandals in Servis, Sandals in Cheetah and Leeza in which, Sleepers, joggers, Sandals and Shoes.
These Categories are missing in Bata. After Analysis this sheet Bata Select a product Sleeper
with the price range 299-499 and the brand name is Leena. But they differentiate Leena among
competitors through colours variation and more designs. Here the selection of new product is

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depending on the manufacturing capability of organization. In the case of Leena, Bata watched
that the Leena Sleeper is easy to manufacture and east to launch in summer.

BATA SERVIS
Bata: Servis:
Shoes 499-1799 Shoes 429-1699
Sleepers 329-999 Sandals 329-999
Sleeper (Ladies) 499-899 Sleepers 429-899
Wienbrener: DonCorlos:
Shoes 899-2199 Shoes 999-2500
Sandals 499-1499 Sandals 899-1999
Sleepers 499-1299 Sleepers 699-1299
Power: Cheetah:
Joggers 999-1899 Joggers 1199-3999
Sandals 899-1299

Bubble & Gambles: Toz:

Kids Shoes 299-799 Kids Shoes 299-899
Leeza: (Ladies)
SLEEPERS 299-499
Joggers 499-999
Sandals 499-1459
Shoes 599-999
B-First: Skoz:
School Shoes 379-649 School Shoes 349-699
B-Comfit: Calza:
Sleepers 599-899 Sleepers 349-749
Sandals 499-999 Sandals 349-849

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Ladies Sandals 429-899

RECOMMENDATION:

For the Price Range Strategy, the recommendation is GAP ANALYSIS.

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2. RECOGNIZATION OF ORGANIZATION CAPABILITIES :

Third is the recognization of organization capabilities. This is basically a judgment of

capabilities which is required for new product development. According to our visit in Bata
Shoes Ltd, we collect the information in this area. In Bata Shoes Ltd, there is no any specific
technique use by Bata. When idea is selected then all the managers are arrange a meeting, it
may be for a day or for a week. Where they decide that they should develop the product or
not.

So with the help of an example, we can easily understand how Bata judge the organization
capabilities for developing and launching the new product.

For example, there are two or three ideas and Bata want to transfer these ideas into the
tangible product form. The ideas are,

(01) New category of new style in Power Joggers

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(02) New category of new style in Wienbrener shoes (Male)

(03) New category of new style in Bata Sandal (Male)

Now Bata want to transfer these ideas in product form. So Bata arrange a meeting of all
managers, general managers and directors of all departments. The departments like;

 Finance

 Marketing

 R&D

 Production/Manufacturing

 Store

 CAD/CAM etc.

All the managers, general managers and directors sit together and talk about on all
aspects with the help of all required documents which prepared by all departments
managers and held presentations as well.

FINANCE DEPARTMENT:

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Finance Department gives the investment/manufacturing cost and profit margin of all
new ideas in figure. For Example,

Categories Units Single (Total Cost Sales Total Sales Profit Total
Unit in Figure) Price/Unit (PKR) Margin/Unit Profit
cost (PKR) (PKR) (PKR)
(PKR)

New style in
Power 1 Lac 696 69600000 1699 16990000 1003 100300000
Joggers 0

New style in 1 Lac 584 58400000 1899 18990000 1315 131500000

Wienbrener 0
Shoes (Male)

Bata Sandal 1 Lac 239 23900000 799 79900000 560 56000000

(Male)

MARKETING DEPARTMENT:

Marketing Department gives the advertisement cost and customer survey cost included in
it. Its gives information about competitors as well that the competitors have these
category or design or not. Let assume, in this case these styles are totally new.

For example;

Categories Advertisement Cost

20000000
New style in Power Joggers

20000000
New style in Wienbrener Shoes (Male)

20000000
Bata Sandal (Male)

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It set also target market for each category.

Target Market

Power Joggers Sports Person

Wienbrener Shoes Professionals/Business Class
Bata Sandal Teenagers/Mature (Male)

R&D DEPARTMENT:

In Bata, R&D is the Sub-Department of marketing department and it is in-house. In this

case, R&D Department tests the samples of all these categories regarding comfort and
design.

PRODUCTION/MANUFACTURING DEPARTMENT:

Production/Manufacturing Department gives the information about their requirements

regarding all categories. In this case for example, manufacturing Department quote an
inventory in which they mentioned all requirements like raw material (Leather/Rexene,
thread, oil, studs, glue), stitching and assembled machines etc. Store Department is
interconnecting with manufacturing department. If gives information about the
availability of raw material.

 For Power Joggers Category, they have raw material and platform but in new
style, there is a zigzag stitch on it. For zigzag stitch there is a separate machine
which is missing in Bata. Zigzag machine should import from Japan which costs
high. It may be 20 million approx total cost of machine.
 For Wienbrener Shoes, manufacturing department quote an inventory which
shows that they have complete raw material and platform for manufacturing
Wienbrener shoe.

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