Footwear Industry
INDIAN FOOTWARE
INDUSTRY
 The Indian footwear retail market
is expected to grow at a CAGR
of over 20% for the period
spanning from 2008 to 2011.
 Footwear is expected to comprise
about 60% of the total leather
exports by 2011 from over 38%
in 2006-07.
 Presently, the Indian footwear
market is dominated by Men's
footwear market that accounts for
nearly 58% of the total Indian
footwear retail market.
 By products, the Indian footwear
market is dominated by casual
footwear market that makes up
for nearly two-third of the total
footwear retail market.
 As footwear retailing in India
remain focused on men's shoes,
there exists a plethora of
opportunities in the exclusive
ladies' and kids' footwear
segment
 The Indian footwear market
scores over other footwear
markets as it gives benefits like
low cost of production,
abundant raw material, and has
huge consumption market.
 The footwear component
industry also has enormous
opportunity for growth to cater
to increasing production of
footwear of various types, both
Business environment
Athletic footwear industry
Just do it
The Journey
 1960s-Phillip Knight(CEO) & William Bowerman
partnered to
sell running shoes to athletes.
Headquarters- Washington

 1978- BRS, Inc. officially renamed itself to Nike

 2008- revenue in excess of $18.6 billion USD.

 Marketing Strategy
 Nike's marketing strategy is an important component of the
company's success.
 Nike is positioned as a premium-brand, selling well-designed
and expensive products.
 Nike lures customers with a marketing strategy centering
around a brand image which is attained by distinctive ‘swoosh’
logo and the advertising slogan: "Just do it". 
 Nike promotes its products by sponsorship agreements with
celebrity athletes, professional teams and college athletic teams.
 Nike's  marketing mix
  contains many
elements besides
promotion.

1. Advertising

2. Beatles song

3. Horror ad

4. Pretty ad
Brand Ambassadors
 STRENGTHS WEAKNESSES

•Competitive •Major income source-footwear

• Self confidence
•Employs more than 30,000 people
worldwide
•Exploit cheap workforce
•Belongs to Fortune 500 companies which
2007 total revenue exceeded 16 b. USD •Employees child labor
•Large scale operation occasionally
•Strong and innovative marketing strategy

OPPURTUNITIES THREAT

    •Financial crisis may lead to job shortages

•There is also the opportunity to develop in a number of Nike’s worldwide
products other than shoes such as subsidiaries;
sportswear, jewellery, clothing, etc. Such
higher value items tend to bring higher • The market for sports shoes and clothing
profits.  is very competitive

•  Nike is vulnerable to the international

nature of trade
NEW MODELS
COMPANY PROFILE
 Adidas Ltd is a German sports apparel manufacturer and part
of the Adidas Group, which consists of Reebok sportswear
company, TaylorMade-adidas golf company, and Rockport.
 The company is the largest sportswear manufacturer in Europe
and the second largest sportswear manufacturer in the world.[2]
 The company revenue for 2006 was listed at €10.084 billion, or
about US $13.625 billion and the 2007 figure was listed at
€10.299 billion, or about $15.6 billion.
 MISSION: Our mission is to become the best sports brand in
the world. To that end, we will never equate quantity with
quality.
Products Of Adidas Group
Adidas
Footwear, apparel, and hardware such as bags and
balls
Reebok
Footwear, apparel and hardware
Rockport
Footwear
TaylorMade-adidas Golf
Golf Equipment: metalwoods, irons putters, golf balls,
footwear, apparel and accessories
Operating Regions
More than 170 subsidiaries guarantee marketplace
presence for adidas products around the world.

Sales and distribution of adidas products is grouped in

four regions worldwide: Europe/Emerging Markets,
North America, Asia/Pacific and Latin America.

Today, adidas is Europe’s biggest supplier of athletic

footwear and sports apparel.
 STRENGTHS
Adidas is popular in Europe among
soccer and athletic fans .
Reebok appeals to US fans of basketball
and football. It has become the biggest rival
to the world leader NIKE.
They have has global presence.
Adidas focuses on performance
development and technology development
while Reebok is purely sales driven
OPPORTUNITIES
 Increasing demand in the industry for
products available online
Increase female participation in athletics
E-commerce will reduce the cost of goods
sold thus improving the "bottom line"
New technology and innovation to stay on
top of market need.
Collaborate with other online retailers to
offer Adidas products
WEAKNESSES
Negative image portrayed by poor
working conditions in its overseas factories
E-commerce is limited to USA
The direct sale to consumers is creating
conflicts with its own resellers
THREAT
Economic downturn in North America
and Asian Countries
Increase in the price of providing
technological solutions (e-commerce)
Strong competition from some of its
major challengers in all branches of the
business
Increase in the Price of Raw materials
Nike's strong reputation in the footwear
and apparel industry
Marketing Strategies of Adidas
 Adidas believes that  Cooperate with reference
marketing is much more groups
important because shoe is in
the “shopping goods”
category.  Cooperate with famous
designers
 Adidas outsources its
production and focuses on  Change the traditional
marketing image of sport
 Adidas launched several
 Italso partnered with
campaigns like in 2004
IMPOSSIBLE IS MTV.
NOTHING
CAMPAIGN’,MATCH
CENTRE CAMPAIGN
 4P’s OF ADIDAS
PRODUCT
Attracting competitors' customers.
Sharper product differentiation.
Finding other products' uses.
Increasing promotional effort.
PROMOTION
Attracting other market segments.
Seeking other distribution channels.
Advertising in other media.
PRICE
Increasing present customers' rate of
usage.
Increasing the units of sales.
Special price packages/cross‑selling
products
Reduction in price.
Price incentive for increased use
PLACE
New geographical markets.
National market expansion.
Regional market expansion.
Export market expansion.
 Bata Shoe Organization
Bata Industrials Worldwide
 Bata Industrials is a specialized
division of the World’s largest shoe
manufacturer: the Bata Shoe
Organization (BSO)
 Today, Bata Industrials is one of
world’s largest manufacturer &
marketer of Safety footwear The
company headquarters is located in
Best, the Netherlands.
 Bata Industrials has operations and
production facilities in most of the
Countries worldwide.
 Bata Industrials Footwear incorporates
more than 100 years of experience.
Bata India Limited
 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.
 Bata India is the largest company for
the Bata Shoe Organization in terms of
sales pairs and the second largest in
terms of revenues.
 Bata India Limited is the largest
footwear retailer in India.
 Bata India has more than 1250 stores
across the Country.
BATA – Wrong Target

 In the early 1990s, Bata decided to embrace the high-end segments

of the Indian shoe market as a part of its target market.
 The segment constituted a mere 5 to 10 per cent of the footwear
market in India.
 This segment was not sizable for a company like Bata and the
segment did not gel with Bata’s distinctive competence.
 The top end of the market suddenly became the main focus of the
company and it forgot its bread-and-butter shoes that had given the
company its identity.
 The year 1995 saw the company running a loss of Rs. 42 crores.
 After learning the lesson the hard way, Bata did an about-turn from
its adventure with high-end segment and returned to the mass
segment.
Marketing Strategy
 Bata is reinventing itself and has
introduced the concept of flagship
stores to provide complete and
unique shopping experience at par
with their stores abroad.
 International trends, relaxed
ambience, great products, and
courteous staff at the new-look
Flagship store are all a part of Bata’s
new marketing strategy.
 Reposition brand 'Bata' - High brand
recall for consumer lead to higher
footfalls and better conversions
 Target new market (ladies and kids) -
Filling the missing 45% pie of
footwear market
 Improving shoe line - Launching
international brands, focus on style
will attract new young customer class
95 Paise Price Tags
 It was a strategy to begin
sales talk with buyers curious
about price like Rs 299.95.
 It would automatically create
interest in the product. And
from there salesmen can start
their talk.
 The Bata price also had a
psychological impact on the
prospective buyers as it fell
short of an amount that might
have looked like a high price.
 The price tag was devised to
communicate to customers
that Bata values even their
five paise.
 Bata Overview
Market segment low to medium priced footwear for the
common person across the globe

Local Strategy Bata runs semi-autonomous companies

targeted at the low to medium end of
the scale.

Marketing Approach Bata clusters countries geographically

into groups; the expatriate would build
regional specialization & training
activities would be more relevant on a
regional basis for similar counties

International strategy Bata follows a multi domestic strategy.

It stands for low integration across
country units & high local
responsiveness
Bata’s Offerings
History
 Established in the year 1954 by Mr. D P Gupta, Mr. P D
Gupta and Mr. R K Bansal

 Liberty Shoes Ltd. is a leading leather shoes brand and is

engaged in the manufacturing, supplying and exporting of
the same.

 It is the only Indian leather shoe brand that occupies fifth

ranking among the top shoes manufacturing companies in
the world
Liberty-Quality Footwear
 Liberty has been awarded
several times by prestigious
awards such as:
 2005 – 2006 Export Award
 Golden Peacock Innovation
Award in the year 2005&2007  was implemented and is
 It has a patented technology
"HUMANTECH" which states
the company’s philosophy of
the optimum utilization of
human craftsmanship and
technological excellence.
 SAP was used first time in
Indian footwear Industry by
“Liberty”.
 The products are quality
tested and it also has
management systems and
tools in place such as :
 In the year 2000, KAIZEN
practiced throughout the
organization.
 The concept of 5S was
introduced in the company in
the year 2001 and presently
it is in matured stage and is
followed religiously.
 It have received ISO
9001:2000 certification
Marketing Strategy
Liberty has an  The company is broadening their product range from need
extensive based shoes to lifestyle shoes.
distribution channel  Liberty Shoes is increasing their presence in the high end
which has enabled market through concept stores called "Revolutions”.
them to develop a  Revolutions’ strategy is to target women and children to
firm grip over the increase footfalls.
market.  Apart from having presence in malls, Revolutions is also
02 Overseas expanding its reach through the Shop in Shop concept.
Offices  In September 2005, Liberty Shoes and Pantaloon Retail
14 Branch Offices entered in to a joint venture for the business of footwear
retailing.
20 Overseas  Another significant market that Liberty Shoes addresses is
Showrooms the institutional market. They manufacture safety shoes for
300 Liberty industrial workers. 9% of their revenues came from this
Exclusive segment
Distributors  ‘Sapne Hue Apne’ the entire look of the campaign was
375 Retail Stores thoughtfully stylized to strike a chord with the upmarket,
fashion centric youth.
(10 outside India)
Sales through different channels of distribution
 PRICING STRATEGY
 Liberty’s strategy is to scale up in
all directions, i.e.to widen
customer base by introducing
products for all categories of
customers, through different
channels of distribution.
 Liberty wants to create foothold in
the domestic and export market.
 With the implementation of VAT
at a flat rate of 12%, the company
has taken a long term view of their
pricing strategy which has been
revised from the April 2005.
 Liberty's strategy of introducing
various price points to cater to
different income groups will help
them in garnering a greater market
share.
 Moving up the value chain by
introducing brands to cater to higher
income groups as well as putting up
retail shops in malls will auger well
for the company.
 This strategy will help establish
their brands as well as increase
margins.
 Another interesting aspect is the
company's change in focus from
men's shoes to concentrating on
shoes for the entire family.
SCALING IN ALL DIRECTIONS
Action Shoes
 Action is headquartered in Delhi.

 Quality shoes for the whole family-ranging from casuals to

formals.

 Most Action offerings are in the mid - range price

segments.

 COMPLETE FAMILY FOOTWEAR

 A backward integration strategy

 A forward integration strategy

Action Shoes
 Quality commitment.
 Manufacturing excellence.
 Quality people.
 Quality customers.
 Social responsibility.
 "Lala Muni Lal Mange Charitable Trust" since
1977. Today it is engaged in various kinds of charitable
activities.
 Marketing strategy.
 Wide consumer base.
 Wide price products.
COMPARISON OF COMPANIES
COMPANIES AVERAGE GROWTH
RATE (2005 – 2008)
NIKE 10.7 %

ADIDAS 22.46 %

BATA 7.8 %

LIBERTY 11.16 %
 COMPARISON OF THE COMPANIES
(PORTER’S MODEL)
BASIS OF NIKE ADIDAS ACTION BATA LIBERTY
COMPARI
SON
BARRIER ABSENT ABSENT ABSENT ABSENT ABSENT
S TO
ENTRY
BARGANI LOW LOW HIGH HIGH HIGH
NG
POWER
OF
BUYERS
BARGAIN LOW LOW HIGH HIGH HIGH
POWER
OF
SUPPLIER
THREATS OF HIGH HIGH HIGH HIGH HIGH
SUBSTITUTE
S

RIVALRY HIGH HIGH HIGH HIGH HIGH

AMONG THE
EXISTING
COMPITITOR
S
COMPANIES TARGETING THE CONSUMERS BASED ON INCOME PER
ANNUM

RICH CLASS
PUMA, NIKE
ADIDAS

UPPER MIDDLE
ACTION, LIBERTY,
CLASS
NIKE, ADIDAS

LOWER MIDDLE
BATA, ACTION, LIBERTY,
CLASS
NIKE, ADIDAS

BATA, ACTION
LOWER INCOME
GROUP
 Made by :
Prachit Maheshwari
Mba mm 4th sem-”A”