Bata`s Direct Marketing Initiatives

Case Code: CLMM150 Case Length: 5 Pages Period: - Pub Date: 2020 Teaching Note: Available

Price: Rs.150 Organization: - Industry: - Countries: India Themes: Direct Marketing, E-Business Strategy, Consumer Behavior, Segmentation

Abstract

The case study ‘Bata’s Direct Marketing Initiatives’ throws light on the various direct marketing initiatives implemented by Bata India Ltd (Bata India), India’s largest organized footwear retailer, to drive sales and reach out to customers during the COVID-19 pandemic, and thereby sustain business activity.

The case study begins by looking at the early direct marketing initiatives of the footwear retailer, namely, ‘Bata Direct’ that was launched in 2008 to sustain business against the backdrop of the 2007-2008 global financial recession followed by Bata India’s various e-commerce initiatives to take on the increasing competition from e-commerce companies like Amazon and Flipkart.

Bata India decided to slow down its retail expansion amid the coronavirus pandemic in mid-2020, and strengthen its online channels for growth. It segmented customers into Digital Natives, Digital Adopters, and Digital Novices based on their proficiency in using technology and introduced direct-to-home marketing initiatives targeted at different segments namely, ‘Bata Chat Shop’ and ‘Bata Store-On-Wheels,’ that allowed consumers to shop from the comfort and safety of their homes. The case study ends by touching on the future retail and business operations plans of Bata India including plans to focus more on the omni-channel approach, digitization of its processes to cut costs, and becoming a paperless organization.

Issues

• Understand the need for traditional retailers to move from multi-channel to omni-channel retailing
• Become aware of the factors that drive online and offline shopping
• Become aware of the benefits offered by direct-to-home marketing, especially in sluggish markets
• Understand the importance of customer segmentation in online retailing
• Learn about integrating customer engagement between online and offline channels

Introduction

Bata India Ltd. (Bata India) earned a profit of INR573 million in the first three months of 2020, a dramatic fall compared to the INR1,052 million profit earned in the first three months of 2019. The fall in profit was primarily due to the Covid-19 pandemic that resulted in lockdowns across the world and a significant reduction in business activity. Bata India introduced several initiatives to drive sales and reach out to customers following the country-wide lockdown.

Bata India, India’s largest organized footwear retailer, was a pioneer in organized footwear retail in the country. Established in 1931, the company operated as a subsidiary of Switzerland-based Bata Shoe Organization (BSO). As of 2020, the company sold a wide range of footwear products through 1,450 retail outlets that occupied over 2 million square feet of retail space spread across 600 Indian cities and towns. The company received the ‘Most Admired Footwear Brand’ Award at the 4th Images Retail Awards (IRA) 2007. It was also rated as one of the Top 10 super brands in India and awarded the Super Brands Award in April 2007. Brand Equity recognized Bata as one of the ‘Top Most Trusted Brands’ in November 2013. It again won the ‘Most Admired Footwear Brand’ of the year 2017, at the 18th Annual IMAGES Fashion Awards.

Keywords

Direct-to-home Marketing; Omni-channel Retailing; Consumer Decision-making; Online Retailing, Online Purchase Behavior; Marketing Strategy; Mobile Marketing; Segmentation; E-commerce; Customer Engagement

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