1

FOOTWEAR

CONTENTS:

1. (A) Market size of the Foot Wear industry in India.

(B) Coverage by Volume and Value

2. Organized and Unorganized Foot Wear Companies

3. Two Major companies(BATA and LIBERTY)

4. Description of both by Value and Volume

5. Sales and Profit/Loss of both the companies

6. STP and Marketing Mix of both the companies

7. Comparing both

8. Conclusion- which one is best and why

2

• Estimated size stands at 16000 crores

• About 55 per cent of the country's overall footwear

industry

• About 70 per cent of the labour

-intensive footwear industry in Unorganized

• Accounts for 15% global share

1. (A) MARKET SIZE OF FOOT WEAR INDUSTRY IN INDIA:

3

TOTAL MARKET BY VALUE (2010-11) :

• Rs. 193.2 Billion market by value

• 10.1% Growth rate of market

• Increased 62.1% since last five years

4

TOTAL MARKET BY VOLUME (2010-2011):

• Rs. 3.2 Billion Pairs Market by volume• 9.7% of growth rate• Increased 59.2% since last five years

5

ORGANIZED SECTOR VS UNORGANIZED SECTOR

The footwear market is estimated to be worth Rs.13,750 Crore

Organised MarketUnorganised Market

37.80%

62.20%Indian Footwear Market

6

7

MAJOR BRANDS IN FOOTWEAR MARKET :

8

Bata India is the largest retailer and leading manufacturer of footwear 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

Its retail network of over 1200 stores gives it a reach / coverage

stores are present in good locations and can be found in all the metros, mini-metros and towns

also operates a large non retail distribution network through its urban wholesale division

caters to millions of customers through over 30,000 dealers9

BATA’S MARKET SHARE : BY VOLUME – 24551

10

BY VALUE :

It commands over 35 percent of market share in India

98 percent revenue comes from domestic operation.

11

Bata India reports excellent growth for second quarter of 2012

Quarter Ended Quarter Ended Increase % 30th June 2012 30th June 2011 Sales 51084.7 43450.9 18 (Rs. in lacs )

Net Profit(Rs. in lacs ) 5265.2 4098.9 29

12

SEGMENTATION: Density

Demographic

Gender

Income

Occupation

Generation

Race

Psycho-graphic

13

Targeting:

1. STATUS/CLASS WISE :

Adidas, ReebokLiberty

, Reebok

Bata,Liberty,Reebok,Relaxo

Bata, Relaxo

RICH CLASS

UPPER CLASS

LOWER MIDDLE CLASS

LOWER INCOME CLASS

14

MAIN TARGETS IN THE MARKET :

Has already targeted the footwear for entire family

Position itself in Price and Quality

Target market to the RICH CLASS and UPPER CLASS

15

POSITIONING :

To introduce FLAGSHIP stores and unique shopping experience.

New retail concept “FOOTING”

High brand recall for consumer lead to higher footfalls

16

MARKETING MIX OF BATA :

PRODUCT (BRANDS):

17

PRICE :All Over The Footwear’s : Minimum Rs. 199 – Maximum Rs. 7500

PLACE : BATA Flagship Store – Block D Cannaught PlaceAround 5000 Distributors across the country

PROMOTION :

Sales Promotion : Display of new Products at cash CountersPromotion of Brand Equity : Gift coupons “ Discover New” CampaignOnline Processes : Purchased from various shopping websites free delivery promise

18

19

liberty

20Liberty

BY VOLUME :

Footwear market is estimated at 550 million pairs, of which 450million pairs are in the form of casual footwear, such India’s total ethnic footwear

BY VALUE :

  A market share of 36% in the leather footwear segment and

22 % in the non-leather sole segment.

21

Liberty India reports excellent growth for second quarter of 2012 :

`

30th June 2012 30th June 2011 Sales 332.54 297.32 (Rs. in lacs )

Net Profit 7.63 10.29(Rs. in lacs )

22

SEGMENTATION :

Area Targeted

Age Wise

Professionals

Generation

Social Class

23

TARGETING :

Already moved to Middle and Upper class segment

Aimed at positioning as a Complete Family Footwear

Focused on the Upper Class as Core Target Market

Shifted attention towards the middle and upper middle class

24

POSITIONING :

Attempt to take its offerings closer to the consumer.

Large format retail outlets, each offering unique experiences to fashion-conscious shoppers

Exclusive Stores to offer the entire Liberty Collection range under a single roof Factory Price Stores should offer affordable products.

25

MARKETING MIX :

PRODUCT (BRANDS) :

26

PRICE :Lowest Range : 250Highest Range :7999(According to the survey)

PLACE(DISTRIBUTION):Main store is at Rajori garden (Delhi)distribution network comprises 150 distributors, 350 exclusive showrooms and more than 6,000 multi-brand outlets.

PROMOTION : The Pan-India initiative The On-ground initiative Marketing initiative

27

28

CONCLUSION :

BATA and LIBERTY :

Price Range

Capturing Market

Product Variety

Promotion Technique

Quality and Durability

29