Essay: Bata Shoe Organisation

Background
Bata, which also known as Bata Shoe Organization. The well known footwear and fashion accessories manufacturer which been founded in the year of 1894, Aug 24th in Zlin, Czechoslovakia. The founder—Tomas Bata started as a normal cobbler with his another two siblings. In that time, they built the one of the world first shoe ‘manufacturer’, they had the farsighted for the retail merchants instead of creating and producing the footwear for family, relatives or neighbours.
Bata able to make 2200 pairs of shoes per day by using less than 10 years times. To maintain the demand, Tomas Bata employing the innovative talents, skilled hand and advanced machinery. It produce shoes for the young, old, athletes, workers and even the soldiers that battled in First World War and the Second World War. Bata sales had increase in to 2 million pairs per year by 1917.
Then, Tomas Bata done lots of good deed, such as built housing, school and hospital specifically for its employees and employees’ families. During the difficult times, Bata provided cheaper rent and food for people who need help. Because Tomas Bata steadfastly believed that business should serve the public.
Its almost 120 years ago from the year of 1894, Bata has operates more than 5000 branches, running 27 production facilities across 20 countries, and employing over 50,000 employee. Last but not least, there’s an average of 1 million customers per day worldwide.
Market Segmentation
Basically, companies cannot avoid the process of segmenting and targeting their market nowadays. Because market segmentation is dividing the market in to smaller group so companies could target the customer and consumer easily and develop the right product to satisfy market need and wants. This could probably bring companies to reach a higher places and achieve higher sales and profits.
Bata has segmented the market in to small group of buyers who have differences in characteristics, need or wants. As the different segments need different products, Bata had tried to develop different products to satisfy the customer’s need and want as well. Bata is using the Demographic segmentation to divide its customer in to small group by the variables genders, occupation, ages and so on. Example for the ages and genders segmentation, the shoes of Ambassador, Mocassino, Weinbrenner is for the men, however, Marrie Claire and Naturalizer is for women and the BubbleGummer is for Kids.
Apparently, the income level or customer who having budget could probably take look of Naturalizer, BubbleGummer, Comfit and so on. On the another side of hand, the Northstar shoes or Power sports shoes, its price will be slightly higher compare to the brand that I had mention before this. Lastly, the well known Hush Puppies, Scholl, Weinbrenner will be expensive.
Product
Bata’s product is classified as shopping product. Bata’s primary products were casual shoes, sports shoes, formal shoes, men and women collection and so on. The brand that under Bata were North Star , Scholl, Power, Mocassino, and so on. It provide the Marie Claire for women, BubbleGummer for children, Power for athletic, North Star for young generation and so on.
This generation, most of the students were wearing North Star white shoes to school. Apparently, customers would like to make a comparison with another brand such as the shoes price, quality, suitability, durability and so on, but North Star white shoes will be the student’s choice in the normal situation. As a student, they were going to wear their school shoes at least 6 hours, the comfort, quality and durability is the biggest problem that they concern about.
However, the Power sportswear of Bata’s sub-brand isn’t as stylish as others brands like, but there’re lots of loyalty customers. Because Bata first concerned about comfortable that shoes bring to customer more that it’s color, it’s fashion, it’s pattern and all that.
Since its very inception, Bata had a huge and awesome product portfolio in terms of the large amount of shoes, sandals and accessories. Customer can be obtained at affordable prices at the same time. Due to its reputation of supplying good quality shoes (and its history of supplying shoes to military in the First World War) people expect the same durability from Bata. Bata has over the years provided well designed products with focus on durability and price.
Price
In Malaysia, Bata’s shoes considered as inexpensive footwear compare to others brand footwear such as Vincci, Opera and so on. Instead of Indonesia, India’etc, those economically backward countries, Bata will considered as expensive branded shoes. The cheapest shoes in Bata were just cost only RM 19.90, and however the most inexpensive shoes in Bata were RM 200—- RM 250, and it’s depending on which model, which pattern that customer choose. As discussed above, Bata had fantastic responded from market due with its reasonable and affordable market pricing. Probably everyone can purchase its products easily.
In the new product pricing strategies, Bata is using the market penetration pricing to develop their new product. Market penetration pricing is meaning that an activity to set a low price for those new product to penetrate the market in short time so could attract a large number of customers. These facts could keep the competition out of market. Example, Bata will specialty promote their product by the market penetration pricing strategies to gain the market share deeply and quickly.
The product mix strategies contain Product line pricing, Optional product pricing, Captive product pricing, Captive product pricing, By-product pricing and Product bundle pricing. The product mix strategies that commonly used by Bata was Product bundle pricing. Product bundle pricing can be defined as placing several products together in single package then selling for a lower price. Example, Bata always selling package of shoes together with socks or shoe polish at lower price so customer could gained cheaper price.
Other than that, Bata often used psychological pricing as its pricing strategy. Psychological pricing is probably settings the prices through psychographics situations. Example, Bata generate the prices of a product to the nearest lower ‘9’ digit figure of the actual price such as priced the product at RM9.99, RM19.90 however the actual prices should be RM 10. This strategy possible to attract more customers
One of the main reasons that Bata keep its growth were Bata priced its shoes in a reasonable pricing and keeps them easily affordable. This isn’t meant that Bata couldn’t target the Premium market because Bata do provide some premium product such as Hush Puppies or Weinbrenner.
Place
The P in place is regarding it to the distribution, location and way that promote the product to the customer. This had include lots of geographic issue such as location of business, distributors, or by just using online shopping to sale product directly to customer and customer.
Thus, Bata’s products go from Bata’s production factory then only will be deliver to warehouse to retailers are a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user. Distribution is one of the most important strategies for Bata to maintain their product’s frequency worldwide. Bata’s product are distributed though warehouses and retailers directly to customers and not only do their shoes available in Bata’s retailer but also in many shoe shops in Malaysia. Besides, this company takes opportunities to develop more retail shops in newly opened shopping centers or shop lots. So this will causes the people in all station of life have the chances to come into Bata.
Promotion
In the beginning of established Bata, Bata were not willing to believe the public relation promotion, therefore, it seldom comes out on television commercial or advertisement. In another word, the cost would be increase if showing lots of different promotions. In the 21st century, technology is improving in a certain way, advertisement and public relation promotion is very progressive. Example, these days, we could ever see Bata’s advertisement by the highway and acting like a reminder advertisement, reminding to maintain the relationship in between of company and customers. From the time to times, Bata do advertising their new product through TV commercial
By the way, there’re another promotion which call sales promotion that often offer in seasonal sales, or discount sales. Normally, this sale is happen on the mid years or end of the year. Example, there’ll be like Ramandan sales for Hari Raya or maybe New Year sales before we end the year. This allows it to save o promotion campaign and the end the customers gain benefits only, with purchasing the lower price shoes.
Conclusion
Lastky, it come to the end of this assignment, all the informations which come from website and others methods had clearly showed that 4P’s have helped Bata to improve their services, frequency of products and maintain relationships with their loyal customers. Apparently with all these advertising and delivering and promotions help Bata gain sales and profit in this maturity stage of their products. As we all know 4P had helped Bata expand their business model and market in the worldwide. Bata could probably improve if they try more strategies such as creating events and more advertising or roadshow. In the conclusion is, Bata has gained benefits while using the 4 P’s strategies which is the Product, Price, Place and Promotion to develop the company and operate their business.
References
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BusinessDictionary.com. 2015. What is Psychological Pricing. [ONLINE] Available at:http://www.businessdictionary.com/definition/psychological-pricing.html. [Accessed 15 June 15].
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