The objectives and strategy of a shoe industry in Pakistan (Bata)

Presented to: Prof. Amna MajeedPresented by: Aima Masood MCOM Punjab College

Principles Of Managerial economics

Introduction:

• What is shoe making?

• Shoe making process

Shoe industry in Pakistan

History

• During 1950’s some well-equipped vendors set up at Karachi, Gujrat and Lahore

• During 60s and 70s more units were established at Hyderabad Kasur, Sialkot, Multan, Sahiwal and Gujranwala.

• Pakistan’s footwear industry manufactures around 120 million pair annually for local consumption and it exports 2 million pair per annum roughly.

Shoe Firms in Pakistan

Some of shoe firms in Pakistan:• Bata. • Service• Hush Puppies• Starlet • Stylo• local and foreign companies

Bata

Background:Bata Pakistan limited is one of the 65 companies working all over the world as shoe manufacturer. It started its operation at Batapur in 1942. Bata Pakistan limited having60:40% foreign and local shareholdings respectively. Bata equips with sophisticated technological and business skills, provides direct employment to about 2,792 people. Bata Pakistan is producing more than 14.0 million pairs of Rubber& Canvas, Leather and Plastic footwear annually in two production units at Batapur and Maraka. Bata is selling more than 17.0 million pairs of Rubber, Leather and plastic footwear annually.

Bata

• Bata is a name that needs no introduction, no doubt best Pakistani shoes brand, providing a huge designs.

• currently operates in 60 countries across the world

• Today, it has over 370 outlets in Pakistan

Popular Brands of Bata Shoes:

• Bata Industrials • Bubble gummers • Baby Bubbles • Comfit • Eco Fit • Marie Claire • North star • Patapata • Power • Sandak • Sundrops • Weinbrenner

Objectives of Bata:

• Marketing objectives

• Overall Objectives

• Strategic Objectives for Every Primary Objective

Strategies of Bata:

• Sale strategy

• Diversification strategy

• Marketing strategy

SWOT AnalysisStrength:Brand ImageFor the entire familyFinancially StrongConveniently accessible Targeting all income segmentsNationwide retail network

WeaknessesIn 2001, 5% decrease in net salesNo proper planning regarding AdvertisementNo variety in Fashionable shoes

 

 

OpportunitiesE-CommerceEntering new segments of MarketsCapturing Market where no other potential competitor existsInnovative ProductsNew mediums for advertisements ThreatsCustomer DissatisfactionPrice wars with competitorsCompetitorsPolitical InstabilityChanging in consumer preferences

SWOT Analysis

Recommendation

• Focus on Product Development, Market Development and Strategies

• Footwear industry is highly fashionable industry; hence Bata must improve the efficiency of product development in order to bring new design and style.

• Should provide consistent quality service to its customers

• Bata debt to equity ratio is 3.51, which means almost 75% are debts. Management should reduce its debts to reduce the financial charges

• Internet is a broad medium so they should also improve e-business

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