Bata India Ltd

A STUDY ON CUSTOMER SATISFACTION OF FOOTWEAR  OF BATA INDIA LTD. IN MANGALORE”

Submitted By Fariha Munawar Reg. No: 082300212

Under the valuable guidance of  Mrs. Gauri Shenoy (Project Guide)

Project Report submitted to the Mangalore University in partial fulfillment of the Requirement of the award of Bachelor of Business management Degree

SRI DHARMASTHALA MANJUNATHESHWARA COLLEGE OF BUSINESS B USINESS MANAGEMENT MANGALORE-575003 2010-2011

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CERTIFICATE

This is to certify that Fariha Munawar student of final year  BBM , Sixth semester 2010-2011, bearing the register No.082300212 undertook project work entitled “A STUDY ON CUSTOMER  SATISFACTION OF FOOTWEAR OF BATA INDIA LTD. IN   MANGALORE” in partial fulfillment of the requirements of the

Bachelor Degree of Business Management, Management, Mangalore University, and that she worked under my guidance and supervision. The views expressed and study made is entirely her own and are based on her empirical study accepted and recommended recommended by the Principal. --------------------------------------------------------------------------------------------------------------------------------------------------------------------

FORWARDED TO THE PRINCIPAL FOR APPROVAL Place: Mangalore Mrs. Gauri Shenoy (Project Guide)

Date:

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APPROVED AND FORWARDED TO THE MANGALORE UNIVERSITY Place: Mangalore Dr. Devaraj.K  Date: (Principal)

Maximum Marks: Maximum marks awarded: the Examiner

Signature of 

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DECLARATION

I, Fariha Munawar of Final year BBM hereby declare that this project titled “A STUDY ON CUSTOMER SATISFACTION ON  FOOTWEAR BATA INDIA LTD” has been prepared by me during academic year 2010-2011 under the valuable guidance & supervision of Mrs Gauri Shenoy , Lecturer, Sri Dharmasthala Manjunatheshwara College of Business Management, Mangalore, in partial fulfillment fulfillment of  the requirement for the award of Bachelor of Business Management degree from Mangalore University. I also declare that this project report is the result of my own sincere efforts and that has not been submitted earlier to any other university for the award of any degree/ diploma/ fellowship /or for any other   purpose.

Place: Mangalore Fariha Munawar Reg. No: 082300212

Date:

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ACKNOWLEDGEMENT

I wish to place on record my gratitude and thanks to to all those who have helped and guided me in the preparation of  this project report. My appreciation goes out to everyone for their  efforts and help. I would like to thank our respected Principal Dr. Devaraj.K of  Shri Dharmasthala Manjunatheshwara College of Business Management for giving me an opportunity to study in this college and do my project studies. I also extend my sincere gratitude to Mrs. Gauri Shenoy. for  her guidance and encouragement, who has helped me to complete this project report successfully. I am indeed very grateful to “Bata India Ltd” for permitting me to do my project study. I would also like to express my sincere gratitude towards Mr Edwin Manager of Bata Ltd, Jyothi, Managalore for his encouragement and professional guidance without which it would have been impossible to complete this  project. I am thankful to all the respondents for their cooperation and my friends for helping me to collect the information in time and also encouraging me through the project.

Fariha Munawar Place: Mangalore Date:

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CHAPTER 1

INTRODUCTION

•

OVERVIEW OF THE

FOOTWEAR 

INDUSTRY •

EVOLUTION OF FOOTWEAR 

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OVERVIEW OF THE FOOTWEAR INDUSTRY

The footwear sector is a diverse industry which covers a wide variety of materials (textile, plastics, rubber or leather) and products from different types of men’s, women’s and children’s footwear to more specialised  products, like snowboard boots and protective footwear. This diversity of  end products corresponds to a multitude of industrial processes, enterprises or market structures. Indian footwear sector is one of the major revenue earners in country. The footwear industry is a significant segment of the leather and fashion industry in India. Footwear industry is basically labour intensive and is generally seen that it is concentrated in the small and cottage sectors. The Indian footwear industry ranks second among the footwear producing countries next to China. India is the world's second largest producer of footwear; its production estimated over 700 million pairs per annum. At about US $ 300 million per  year, footwear accounts for 18 percent share of total exports of leather  exports.

Various types of shoes produced and exported from India include dress shoes, casuals, moccasins, sports shoes, horacchis, sandals, ballerinas, and booties. Major production centres are Chennai (Madras), Delhi, Agra, Kanpur, Mumbai (Bombay), Calcutta and Jalandhar.

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Most Mo st of the the mo moder dern n footw footwear ear manuf manufact acture urers rs in India India are are alread already y supplying to well established brands in Europe and USA. The large domestic mark market et and and the the op oppo port rtun unit ity y to cate caterr to worl world d mark market etss make makess Indi Indiaa an attractive destination for technology and investments. Equally relevant is it for the footwear components industry, at this juncture, it is posed for real growth and diversification. diversification.

India is the second largest footwear manufacturer in the world, next only to China. Nearly 58 percent of the industry, which is by and large labour intensive and concentrated in the small and cottage industry sectors, remains unbranded. However, as part of its effort to play a lead role in the global trade, the Indian leather industry is now focusing on key deliverables of innovativ innovativee design, design, state-of-t state-of-the-a he-art rt producti production on technolo technology gy and unfaili unfailing ng delivery schedules. Globally, the trend towards sourcing to countries with low-cost  production continues. continues. Overall, the Far East continues to be the key area for  footwear sourcing, but Eastern Europe (Romania and Bulgaria) has become more important as closer proximity helps European retailers to move faster. India and Vietnam are also considered important for sourcing. India is especially strong in the men 's footwear segment though the world 's major   production is in ladies footwear. footwear. This not only limits the scope for footwear  exports, but also points to a huge potential in the domestic market. Proper   branding and promotion can greatly increase the domestic demand in ladies footwear.

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While leather shoes and uppers are concentrted in large scale units, the sandals and chappals are produced in household and cottage sector. In the case of chappals and sandals, use of non-leather material is prevalent in the domestic market.

Among the world import of leather and leather products, the share of  leather leather footwear footwear alone alone constitu constituted ted 35.8% 35.8% . On the other hand, India's share in world import of leather footwear is just 1.42% . The country

wise export of leather is as follows

•

The Footwear Industry is a significant segment of the Leather  Industry in India.

•

India ranks second among the footwear producing countries countries next to China.

•

India produces more of gents' footwear while the world's major   production is in ladies footwear. footwear.

•

The industry is labour intensive and is concentrated in the small and cottage industry sectors. While leather shoes and uppers are concentrated in large scale units, the sandals and chappals are  produced in the household and cottage sector.

•

In the case of chappals and sandals, use of non-leather material is  prevalent in the domestic market.

•

The major production centers India are Chennai, Ranipet, Ambur  in Tamil Nadu,, Mumbai in Maharastra, Kanpur in U.P. , Jalandhar 

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in Punjab, Agra and Delhi. The following table indicates concentration of units in various parts of the country

•

Shoes manufactured in India wear brand names like Florsheim, Gabor, Clarks, Salamander and St. Micheal's. As part of its effort to play a lead role in the global trade, the Indian leather industry is focusing on key deliverables of innovative design, consistently superior quality and unfailing delivery schedules.

•

India in itself has a huge domestic market, which is largely untapped.

•

The Indian footwear industry is provided with institutional infrastructure infrastructure support through premier institutions like Central Leather Research Institute, Chennai, Footwear Design & Development Development Institute, Noida, National Institute of Fashion Technology, New Delhi, etc in the areas of technological technological development, development, design and product development and human resource development.

•

The availability of abundant raw material base, large domestic market and the opportunity to cater to world markets makes India an attractive destination for technology and investments.

Shashi Bhushan, Footwear Design and Development Institutes (FDDI) Secretary, while attending a seminar on footwear industry said that the leather and footwear industry is experiencing a boom and is likely to grow

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 by 20 to 30 percent in the next few years. It severely needs skilled manpower.

The Ministry of Commerce, in order to meet this requirement, is  planning to set up Footwear Design and Development Institutes in Chennai, Kolkata and Haryana.

The All India Footwear Manufacturers and Retailers Association (AIFMRA) have sought changes in government policies to be able to  provide a growth impetus to the industry. The industry is marked by irrational tax structure so the association has urged the Government to  provide it with a level playing field. The association wants this change to reflect in the upcoming budget. The footwear industry in India is at a critical juncture. It needs the support of forward looking pro-industry policies to be able to achieve global scale and competitiveness. The association highlighted that in the absence of  a conducive business environment; Indian footwear industry could face irreparable damage. Adesh Gupta, President, AIFMRA and the CEO of Liberty says, “One of the main concerns of AIFMRA is the irrational tax structure imposed on the industry by the government. The association has recommended that VAT and Excise Duty on footwear industry should be at par with the garment industry. Both industries produces are essential items of similar utility for 

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the consumer and basic raw material for both the industries i.e. cotton and leather are indigenously available." At present 12.5% VAT is being imposed on the organised leather  footwear industry. The Excise Duty which is based on the MRP of the  product is fixed at 9.6% + Education cess on footwear above Rs250, while garments of any value have zero duty. VAT and excise duty on footwear  should be reviewed and brought at par with the garment industry-4 % VAT and totally exempt from excise duty. Due to the business environment in India such as high tax structure, the industry has failed to grow on various parameters. The high tax structure discourages investments in this sector. Also due to high taxation foreign manufacturers do not want to set up their production units in the country. For the same reason, even the indigenous manufacturers are not planning any major fresh investments in the sector, thereby affecting the capacity expansion. China is the preferred destination vis-à-vis India for foreign brands to source their products. Even the global retail giants prefer China to outsource their products. The present taxation regime favours imports of footwear   products because manufacturing of the same product in India will cost more than importing the same. India has the largest livestock in the world ensuring a large raw material base yet, India’s share is an insignificant 1.4% of the global trade in leather footwear, as compared to China’s 78%. Also Indian Footwear industry has faced stagnant sales and depressed margins over the  past few years.

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The footwear industry being a labour intensive industry generates huge opportunities for employment. Total employment in the Footwear  industry is approx. 2.5 million people, which includes 30% women. The footwear industry generates employment for the weaker sections of society and employs unskilled and uneducated members as well as large number of   people from the backward and minority communities. E.g. 10 people get to employment per one pair of shoes produced. Hence, the right kind of  enabling factors will boost the industry to realize its potential to create huge employment opportunities. The creation of such employment opportunities are also is in line with the policies of the government. About 70%-80% of the footwear industry is in the unorganized sector  that is outside the tax net. Rationalization in the tax structure will bring in more players into the organised sector, which will in turn increase the tax revenue for the government. Workers will also benefit, as they will be able to derive minimum wages once unorganized players move into the organised sector.

EVOLUTION OF FOOTWEAR 

It is impossible to describe as to when shoes people first began to wear  shoes. Primitive man made his own shoes from the skins of wild animals he hunted and where the climate was cold, he tied fur around his fur around his lower legs. Mostly it was used to give protection to the feet against the bites of insects in the forest. So from the ancient time only , shoes were used to give protection to the feet.

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The sandal was the earliest form of shoes made by a “ specialist” shoemaker. The early Egyptian made sandals, which consisted of a sole, held by a single piece of leather. This foot sandal called a thong is still  popular in certain parts of the world. Through out history, shoes have not only provided protection but also added style and indicated social status. The early shoe designs were often taken from nature. By the early 16 th century a new fashion emerged in the woman’s shoe category called rounded toes, which was replaced by a new fashion was there in the ancient times too. In the middle of 18th century, many changes took place in the shoes making  process, by the use of simple hand tools, people started to make home made shoes and brought about a revolution. Improved sewing machines were developed and thus shoe making became a factory operation.

In 1882, Jan Ernest Matzeliger, an American worker in a shoe factory invented a shoe –last machine, which by moderation started mass production of shoes by 1900, in this way shoe making has become a craftsmanship and introduced many shoe-making organizations.

The footwear component industry is a segment of the leather Industry in India. The footwear components, which are mainly exported from India, are leather shoe uppers and leather unit soles. The estimated annual production capacity of leather shoe uppers is 112 million pairs. The major production centers are Chennai, Ranipet , Agra and Delhi. The components industry has enormous opportunity for growth to cater to increasing production of various types, both for export and domestic market.

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The major competition for the Indian shoe industry exports is from China. There has also been a move by some international environmental agencies seeking a ban on Indian leather products claiming the unethical slaughter   practices were being used in India. The industry faces a challenge on this account. The slaughter practices in India, Pakistan, China, Bangladesh and most other South Asian countries are same, but India has been singled out by some foreign agencies for some vested interests. Many companies in the US, Europe and Japan are phasing out their operations giving an opportunity to the Indian industry for entering into these markets and expanding their  operations.

The Indian shoe industry produced about 520 million pairs annually : this  production is second only to China, which produces about 685 million pairs annually. India exports components touched $ 350 million in 2002-2003 holding a share of 20% in India’s total exports of leather and leather   products. The major markets for Indian footwear components are the UK, Germany , Italy the USA, France and Portugal. Nearly 83 % of India’s footwear components are to the above countries.

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CHAPTER 2

RESEARCH DESIGN

• • • • • • •

INTRODUCTION SCOPE OF STUDY THEME TITLE OJECTIVES METHODOLOGY LIMITATIONS

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RESEARCH DESIGN AND METHODOLOGIES

INTRODUCTION

Bata Footwear is the largest player in the footwear industry. It manufactures and markets footwear for every walk of life. It is the first Indian company to introduce shoes using latest technology under its brand “Bata tech”. Bata companies annually manufacture over 14000000 pairs of  shoes in 46 production facilities.

Bata a house hold name in India and is the undisputed leader in the footwear technology. It manufactures and markets footwear for every walk  of life. Bata Company annually manufactures over 140,000,000 pairs of  shoes in 46 production facilities. Bata companies serve almost 1 million customers each day. Bata is the first company to introduce shoes using latest technology under its brand “Bata tech”. Bata companies strive to listen to the customers in their local markets and clearly identify their footwear needs and then to provide products that exceed their customers expectations in terms of quality, style and value.

SCOPE OF STUDY

The present study is carried out in order to determine the customer’s  preference and perception toward the footwear brand Bata and also to assess the strength and weakness of Bata footwear product line. This study also reveals what are the drawbacks of Bata footwear.

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THEME:

The present study is conducted for the purpose of knowing the image of Bata footwear product line. For this purpose a survey was conducted in Mangalore consisting of 50 respondents. This survey has tried to uncover  various factors that affect the customers buying decision, their taste and  preference while choosing their footwear and also the psychological factors that affect it.

TITLE:

“A Study on Customer Satisfaction of footwear of Bata India Ltd in Mangalore”

OBJECTIVES:

•

This study is made to understand the interest, attitude and preference of the people towards Bata footwear.

•

To understand pre-purchase and post-purchase satisfaction of  customers.

•

To know the brand image of BATA.

•

To know why people opt for BATA products.

•

To know whether customers are satisfied with the products of BATA FOOTWEAR.

•

To know the service and other facilities provided to customers

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METHODOLOGY:

Every project is based on certain ideas information, data collected from different sources. The information to carry out the project is followed by two sources.

Primary source or data:

Primary data consists of the information or data collected directly from the respondents’ customers of BATA FOOTWEAR. It can be classified into, o

o

Interviews I.

Personal interview

II.

Telephone interview

Questionnaire

o

I.

Structured/closed

II.

Unstructured/open ended

Discussion and interaction with the sales executives.

Secondary source or data:

Secondary data consists of data and information collected through literatures such as o

Magazine

o

Journals

o

Brochures

o

Internet

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LIMITATIONS:



Respondents may not be representative of the population at large because the survey was conducted in Mangalore city and were selected at random.



Though on intensive attempt has been made to collect the necessary data, the availability of certain data proves to  be a limitation



An in-depth conclusion cannot be drawn as customer  mind is ever changing with the changes in economy and trends. Thus a limitation of variations in customer likes and preference are predominantly resistant.



Time was indeed a major limitation. And information can vary from time to time due to technical advancements and changes.

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CHAPTER 3

PROFILE OF BATA INDIA LTD

•

ORIGIN OF BATA

•

INTRODUCTION TO BATA INDIA LTD

•

BATA GROUP

•

BATA BRANDS

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ORIGIN OF BATA

Foundation, Tomas Bata

The company Bata was founded in 1894 in Zlin (today known as the Czech Republic) by Tomas whose family had been cobblers for generations. A large order from the army , military shoes and rising demand for them, during World War I started rapid growth and small manufacture turned into modern industrial concern, one of the first mass producers of shoes.

Tomas Bata was recognized for his social conscience, establishing housing , cinemas and advancement programmes for his employees. The phrase “ work collectively , live individually” is one for the sayings. Bata recognized the potential of large - scale production, and was often called the “Henry Ford of Eastern Europe”. He saw technology as a means of progress and wanted to make the shoes as cheaply as possible so that the greatest number  of people could access them.

In 1932 Tomas died in a plane crash at the Zlin airport and his half brother  Jan Antonin Bata became head of the company.

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At the time of Tomas death, the Bata company employed 16,500 people, maintained 1,645 shops and 25 enterprises. The total international contribution to the Bata organization at the time of Tomas death consisted of  20 international enterprises, 132 shops and 790 employees.

INTRODUCTION TO BATA FOOTWEAR :

India is one of the fastest growing and emerging markets in the world. In the footwear market, India offers major opportunity. The youthful demographics of the population, the increasing exposure to westernized electronic media and growing consumerism has all lead to an increasing demand for branded shoes. The attributes such as image, variety, quality, design, availability, durability, comfort etc play an important role in consumer purchase decision. Therefore it is quite essential for the companies to understand perception of customers and try to cater to their needs   providing them right product and also quality service, thus rendering customer satisfaction.

Bata a house hold name in India and is the undisputed leader in the footwear technology. It manufactures and markets footwear for every walk  of life. Bata Company annually manufactures over 140,000,000 pairs of  shoes in 46 production facilities. Bata companies serve almost 1 million customers each day. Bata is the first company to introduce shoes using latest technology under its brand “Bata tech”. Bata companies strive to listen to the customers in their local markets and clearly identify their footwear needs and then to provide products that exceed their customer’s expectations in terms of quality, style and value. 22

The store of Bata India was established at Trade Center Bunts Hostel Road, Jyothi Mnagalore in January 1988. Presently the manager working in this outlet is Mr Edwin.

Bata Group

Bata has a worldwide reach, with operations across 5 continents managed by 4 regional meaningful business units (MBUs). Each unit  benefits from synergies specific to their environment, such as product development, sourcing or marketing support. Each MBU is entrepreneurial in nature, and can quickly adapt to changes in the market place and seize  potential growth opportunities.

Bata today...

• Serves 1 million customers per day • Employs more than 40,000 people • Operates 5,000 retail stores • Manages a retail presence in over 50 countries • Runs 33 production facilities across 22 countries

Incorporated as Bata Shoe Company Private Limited in 1931 in India, the company went public in 1973 when it changed its name to Bata India Ltd.

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Our first factory was set up in Konnagar in 1931 which was then shifted to Batanagar. At the five factories - Batanagar, West Bengal (193 6);Bataganj, Bihar (1942); Faridabad, Haryana (195 1); Peenya, Karnataka (1988); Hosur, Tamil Nadu (1994) - the Company manufactures quality leather, rubber, canvas and PVC shoes in wide-ranging designs and styles at affordable prices. Bata Footwear has a in-house tannery at Mokamehghat in Bihar, which is the second largest in Asia.

Bata Footwear is the largest company for the Bata Shoe Organization in terms of sales pairs and the second largest in terms of revenues. With 1250 stores across the country, it also has the widest retail network within the BSO.

By the time Bata had come to India in 1931, it was already recognized as a leading shoe brand. Its manufacturing and marketing operations heralded the rise and the development of a modem footwear industry in India. Before Bata, footwear was produced primarily in the handicrafts and small enterprise segments. Bata, over the decades, used the 'current knowledge' from its international experience to create adaptive and innovative baseline standards for the shoe businesses in India.

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. In January 1934, the foundation stone for the first  building of Bata’s operation - now called the Bata. In the years that followed, the overall site was doubled in area. This township is popularly

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known as Batanagar. It was also the first manufacturing facility in the Indian shoe industry to receive the ISO: 9001 certification.

The Company went public in 1973 when it changed its name to Bata India Limited. Today, Bata Footwear has established itself as one of Asia's largest footwear retailer. It has cornered around 35 per cent market share in the organized sector (and approx. 8.5% of the total footwear market) Almost 98 percent of the company's revenue is from the domestic market while the rest is from exports. The company currently sells over 45 million pairs of  shoes every year and has an annual sales turnover of more than Rs 8000 million (USD 178 million).

Over the years, Bata Footwear has established a leadership position in the footwear industry and is easily the most trusted name in branded footwear. Its retail network of 1250 stores gives it a reach/ coverage that no other footwear company can match. The stores are present in good locations and can be found in all the metros, mini-metros and towns

In terms of products, the company has now built a good, marketoriented collection that is in line with fashion trends and offers a good quality to price ratio. Its product range now encompasses classic shoes such as Ambassador for Men and comfort shoes such as Comfit for ladies, as well as a more trendy collection for ladies in the Marie Claire range and a sporty fashion collection for young adults in the North Star range.

Bata’s smart looking new stores supported by a range of better quality  products are aimed at offering a superior shopping experience to its 25

customers. And the new face of Bata Footwear is now visible to the industry as well as its customers. Today, backed by a brand perception of experience, the company is working towards positioning itself as a vibrant and contemporary young brand. It has significantly transformed its retail formats to become more lifestyle-oriented, which has helped change consumer   perceptions to a large extent.

Although Bata operates in a wide variety of markets, climates and buying  power, Bata companies share the same leadership points. Two important ones are product concept development and constant improvement of   business processes in order to offer customers great value and the best  possible service.

The company is currently headquarters in Lausanne, Switzerland with 4  business units •

Bata Europe, Lausanne

•

Bata Emerging Markets, Singapore

•

Bata Branded Business, Best Holland

•

Bata North America, Toronto

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BATA BRANDS

Premium Collection

Bata has been delivering handcrafted quality footwear for well over 100 years. To maintain and build on our heritage of creating high quality, comfortable and stylish shoes, Bata has created the Bata Premium Collection of products in our design centre in Italy. These shoes are the most international collection from Bata and are available at selected Bata stores in Europe and in leading Department stores in Asia and the Middle East. They all incorporate innovative leading design with the application of modern technology. They are our signature shoes for both women and men.

Bata Industrials

Footwear beyond Safety Bata Industrials is a specialized division of the Bata Group producing industrial and work related footwear, hosiery and accessories. Bata Industrials is present on four continents to efficiently serve industries in Africa from South Africa, in Asia from Australia, in Latin America from Chile and in Europe from Holland

Bubblegummers

Bubblegummers is the leading children footwear brand in Latin America and has developed an extensive presence in Asia and in Europe. Bubblegummers

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offers quality , comfortable, funny and colorful shoes for the 0 to 9 old that assure the healthy growth of a child foot.

Power

Power embodies diversity with ranges in running, training, court, basketball, football and outdoor that combine functionality with creativity. International  pro-skaters signature shoes designed to meet the demanding needs of  skateboarding are developed under the Power- Skate line. Power is sold across five continents via Bata retail stores and distributors networks.

Marie Claire

Maire Claire shoes are for women with an active lifestyle who seek  contemporary modern styles. Maire Claire shoe stores successfully opened in Latin America and Asia. Bata Brands is the trademark owner of Maire Claire for shoes worldwide (except in Japan and Korea.)

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CHAPTER 4

CONCEPTUAL FRAMEWORK 

•

CUSTOMER STAISFACTION •

MEASURING CUSTOMER  SATISFACTION

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CUSTOMER SATISFACTION

Customer Satisfaction

Satisfaction is person’s feelings or pleasure or disappointment resulting from comparing a product’s perceived performance related to his/her expectation. As this definition makes it clear, that satisfaction is a function or perceived performance, and expectations the customer is dissatisfied. If the performance matches the expectations the customer is satisfied. If the performance exceeds expectations the customer is satisfied and delighted.

Many consumers are aiming for high satisfaction because customers who are just satisfied still find it easy to switch over to a better offer which comes along with it. High satisfaction or delight creates an emotional bond with the brand and products, not just a rational preference. The result is high customer loyalty.

The key to generating high customer loyalty is to deliver high customer value. According to Michael Lanning as described in his Delivering Profitable Value, “A Company much develop a competitively superior value proposition is much more than its positioning on a single attribute. It’s a statement about the resulting experience which customers will have from the offering and their relationship with the suppliers. The most represent a promise about the total resulting experience. That the customers can expect. Whether the promise is kept depends upon the 30

company’s ability to manage its value delivery system. The delivery system includes all the communication channels experiences the customers will have on the way to obtaining the offerings.

In addition to tracking customer’s value expectations and satisfaction, companies need to monitor their competitor’s performance in these areas. For customer centered companies, customer satisfaction is both a goal and a marketing tool. Companies that achieve high customer satisfaction rating make sure that their target market know it if the companies increases customer satisfaction by lowering its price or increasing it’s service which may result in low profits.

The company might be able to increase its profitability by means other than increased satisfaction (for example, by improving manufacturing   processes or investing more in R&D). Also, the company has many stakeholders, including employees, dealers, suppliers, and stockholders. Spending more to increase customer satisfaction divert funds from increasing the satisfaction of other might divert funds from increasing the satisfaction of other “partners”. Ultimately, the company must operate on the  philosophy that it is trying delivering a high of customer satisfaction subject to delivering acceptable levels of satisfaction of the other stakeholders, given its total resources.

Customer expectations:

How do buyers form their exception? Form past buying experience, friends’ and associates’ advice, and marketers’ and competitors’ information and promises. If marketers raise expectations too high, the buyer  31

is likely to be disappointed. However, if the company sets expectations too low, it won’t attract enough buyers (although it will satisfy those who do  buy). Today’s most successful companies are raising saturn car division, it charged the whole buyer-seller relationship with a New Deal for car buyers: there would be a fixed price (none of the traditional haggling); a 30-day guarantee or money back: and salespeople on salary, not on commission (none of the traditional hard sell). Look at what high satisfaction can do. A customer’s decision to be loyal or be loyal or to defect is the sum of many encounters with the company. Consulting firm forum corporation says that in order for all these small encounters to add up to customer loyalty, companies need to create a ‘’branded customer experience.

Measuring satisfaction:

Many companies are systematically measuring customer  satisfaction and the factors shaping it. For example, IBM tracks how satisfied customers are with each IBM salesperson they encounter, and makes this a factor in each salesperson’s compensation. A company would be wise to measure customer satisfaction regularly because one key to customer retention is customer satisfaction. A highly satisfied customer generally stays loyal longer, buys more as the company introduces new products and upgrades existing products, talk  favorably about the company and its products, pays less attention to competing brands and is less sensitive to price, offers product or service ideas to the company, and costs less to serve than new customers because transactions are routine.

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The link between customer satisfaction and customer loyalty however is not proportional. Suppose customer satisfaction is rated on a scale from one to five. At a very low level of customer satisfaction (level one), customers are likely to abandon the company and even bad-mouth it. At level two to four, customers are fairly satisfied but still find it easy to switch when a better offer comes along. At level five, the customer is very likely to repurchase and even spread good word of mouth about the company. High satisfaction or delight creates an emotional bond with brand or company, not just a rational preference.

When customers rate their satisfaction with an element of the company’s performance says, delivery need to recognize vary in how they define good delivery. It could mean early delivery, on-time delivery, order  completeness, and so on. The company must also realize that two customers can report being “highly satisfied’’ for different reasons. One may be easily satisfied most of the time and the other might be hard to please but was  pleased on this occasion.

Methods exist to measure customer satisfaction

1. Periodic surveys:

This type of surveys can track customer satisfaction directly. Respondents can also be asked additional questions to measure repurchase intention and the likelihood or willingness to recommend the company and brand to others.

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2. Customer loss rate: Companies can monitor the customer loss rate and contact customers who have stopped buying or who have switched to another  supplier to learn why this happened.

3. Mystery shopper:

Companies can hire mystery shoppers to pose as potential buyers and report on strong and weak points experienced in buying the company’s and competitors’ products. Managers themselves can enter company and competitors sales situations where they are unknown and experience firsthand the treatment they receive, or phone their own company with questions and complaints to see how the calls are handed. For customer satisfaction surveys, it’s important that companies ask the right questions. Frederick Reichheld suggested that perhaps only one question really matters: ‘’ would you recommend this product or service to a friend?’’ He maintains that marketing departments typically focus surveys on the areas they can control, such as brand image, pricing, and product features. According to Richheld, a customer’s willingness to recommend to a friend results from how well the customer is treated by front-line employees, which in turn is determined by all the functional areas that contribute to a customer’s experience

In addition to tracking customer value expectations and satisfaction, companies need to monitor their competitors’ performance in these areas. One company was pleased to find that 80 percent of its

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customers said they were satisfied. Then the CEO found out that its leading competitors had a 90 percent customer satisfaction scores. He was further  dismayed when he learned that this competitor was aiming for a 95 percent satisfaction score.

A customer-centered companies, customer satisfaction is both a goal and a marketing tool. Companies need to be especially concerned today with their customer satisfaction level because the internet provides a tool for  consumer to spread bad word of mouth- as good word of mouth –to the rest of the world.

Product and service quality

Satisfaction will also depend on product and service quality. What exactly is quality? Various experts have defined it as “fitness for use,’’ “freedom from variation,’’ and so on. We will use American society for  quality control’s definition: Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy started or implied needs. This is a customer-centered definition. We can say that the seller has delivered quality whenever the seller’s products meets or exceeds the customers’ expectations. A company that satisfies most of its customers’ needs most of the time is called a quality and performance quality (or grade) Total quality is the key to value creation and customer satisfaction. Total quality is everyone’s job, just as marketing is everyone’s job. Marketers who don’t learn the language of quality improvement, manufacturing, and operations will become as obsolete as buggy whips. The days of functional marketing are gone, we can no longer afford to think of ourselves as market 35

researchers, advertising people, direct marketers, strategists, we have to think of ourselves as customer satisfiers, customer advocates on whole  processes.

Marketing managers have two responsibilities in a qualitycentered company. First, they must participate in formulating strategies and  policies to help the company win through total quality excellence. Second, they must deliver marketing quality alongside production quality. Each marketing activity- marketing research, sales training, advertising, customer  service, and so on must be performed to high standards.

Identifying and satisfying customer needs

The company must define customer needs carefully in designing a service support program. Customers have three specific worries •

They worry about reliability and failure frequently. A farmer may tolerate a combine that will break down once a year, but not two or three times a year.

•

They worry about downtime The longer the downtime, the higher the .

cost. The customer counts on the seller’s service dependability the  ,

seller’s ability to fix the machine quickly, or at least provide a loaner  •

They worry about out-of-pocket costs How much does the customer  .

have to spend on regular maintenance and repair costs?

A buyer takes all these factors into consideration in vendor. The  buyer tries to estimate the life-cycle-costs, which is the product’s purchase

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cost plus the discounted cost of maintenance and repair less the discounted salvage value. Buyers ask for hard data in choosing among venders.

The importance of reliability, service dependability, and maintenance vary. A one computer office will need higher products reliability and faster repair service than an office where other computers are available if one breaks down. Reliability is an important, manufacturer or  service providers can offer guarantees to promote sales.

To provide the best support, a manufacturer must identify the service customers value most and their relative importance. In the case of  expensive equipment, manufactures offer facilitating services such as installation, staff training, maintenance and repair services, and financing. They may also add value-augmenting services. A company must make  promises to the buyers to satisfy them not only after purchasing any product  but prior to it. These be like

1. Five-year product warranties. 2. Quality audits after project installation. 3. Guaranteed move-in dates. 4. Trade in allowance on system products. A manufacturer can offer and charge for product support services in different ways. One specialty organic-chemical company provides a standard offering plus a basic level of services. If the customer wants additional services, it can pay extra or increase its annual purchases to a higher level, in which case additional services would be included. As another alternative, many companies offer service contracts (also called 37

extended warranties), in which sellers agree to provide free maintenance and repair services for a specified period of time at a specified contract price. Service contracts often have variable length and different deductibles so that customers can choose the service level they want beyond the basic service  package.

Company need to plan product design and service-mix dictions in tandem design and quality-assurance managers should be part of the new  product development team. Good product design will reduce the amount of  subsequent servicing. Companies are adding modularity and disposability to facilitate self-servicing to have total customer satisfaction.

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CHAPTER 5

DATA ANALYSIS

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Monthly Income of the Respondents Table No:1 PARTICULARS Below Rs. 5,000 5,000-10,000 10,000-20,000 Above 20,000 Total Chart No: 1

RESPONDENTS 23 17 28 32 100

PERCENTAGE 23 17 28 32 100%

Those who earn below Rs. 5,000 a month is 23% and those who earn  between 5,000-10,000 a month come up to 17%. 28% of the customers earn   between 10,000-20,000 a month and those earning more than 20,000 a month make 32%..

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Whether the respondents have purchased the Bata product for the first time ?

Table No: 2 PARTICULARS Yes No Total Chart No: 2

RESPONDENTS 32 68 100

PERCENTAGE 32 68 100%

A majority (68%) of the subjects in the survey are regular customers of Bata Footwear whereas the rest 32% of the customers surveyed are first time buyers.

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Awareness about the Brand Bata Table No 3

PARTICULARS Friends Family Media Others Total

RESPONDENTS 17 19 38 26 100

PERCENTAGE 17 19 38 26 100%

Chart No:3

Media plays a major role in making brand awareness among customers, both prospective and existing. 38% of the subjects of this survey came to know about Bata through the media, 36% were informed through family and friends and the rest 26% came to know through other   promotional activities.

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Respondents opinion on the demonstration and selection of  display of variety of Bata footwear products

Table No:4

PARTICULARS Poor Exceptional Good Total

RESPONDENTS 18 50 32 100

PERCENTAGE 18 50 28 100

Chart No:4

According to the study, 50 percent of the surveyed customers find the selection and display of variety of Bata footwear products exceptional, 32  percent find it good and the rest 18 percent find it poor.

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When do the respondents purchase the products of Bata? Table No:5 PARTICULARS During Offers Occasions New Design When Needed Total

RESPONDENTS 17 20 27 36 100

Chart No:5

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PERCENTAGE 17 20 27 36 100%

Customers do not mind spending on footwear the design of which they like. 27% of the customers purchase the products of Bata when new designs arrive. 36% of them buy when needed and 20% for special occasions. The remaining 17% of the customers surveyed buy Bata products during special offer period.

Which type of Footwear the respondents usually purchase? Table No:6

PARTICULARS Kids’ Wear Mens’ Wear Ladies’ Wear Sandals Total

RESPONDENTS 15 32 25 28 100

Chart no:6

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PERCENTAGE 15 32 25 28 100%

In this survey,. 32% purchase men’s’ footwear, 25% purchase ladies’ footwear, 28% opt for sandals which are suitable for people of all age and sex. 15% of the customers buy kids’ wear from this store.

Respondents opinion on the Bata products with respect to the range of  payment options Table No: 7

PARTICULARS Poor Reasonable Good Total

RESPONDENTS 16 46 38 100

Chart No: 7

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PERCENTAGE 16 46 38 100

According to the survey , a good 46 percent of the surveyed customers find the range of payment options on Bata products reasonable, 38 percent find d  payments options good and the rest 16 percent find it poor. How often do the respondents use Bata products?

Table No:8

PARTICULARS

RESPONDENTS

PERCENTAGE

Daily

44

44

Weekly

17

17

Special Occasions

13

13

Occasionally

26

26

Total

100

100%

Chart No:8

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A majority of 44% of the survey subjects use Bata products on a daily basis which speaks about the impact Bata has on its customers. 17% of them use Bata footwear on a weekly basis as an alternative for their other footwear. 13% buy and use Bata footwear only on special occasions and the rest 26% use it occasionally. Period of use of Bata products Table No:9

PARTICULARS Less than 6 months More than 6 Months More than a year When needed to change Total

RESPONDENTS 23 34 25 18 100

Chart No:9

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PERCENTAGE 23 34 25 18 100%

23% of the customers in the survey use their footwear less than 6 months. They like to change their footwear often. 34% of them use their footwear for  more than 6 months but less than a year. Those who use more than a year  come up to 25%. The remaining 18% change their footwear when need arises.

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Factors considered while purchasing Bata Products Table No:10

PARTICULARS Price Quality

RESPONDENTS 20 36

PERCENTAGE 20 36

Comfort Style Total

30 14 100

30 14 100%

Chart No:10

Quality is a major factor while choosing footwear. A major 36% of the customers consider the quality factor while choosing the products of Bata. 30% of them choose Bata because for comfort , 20% for price and the rest 14% like the styles offered by Bata. Rate of service provided by Bata Footwear Table No:11 50

PARTICULARS Excellent Good Satisfactory Poor Total

RESPONDENTS 28 50 19 03 100

PERCENTAGE 28 50 19 03 100%

Chart No:11

28% of the surveyed customers rate the service provided at Bata store as excellent, and a majority 50% rates it good. 19% of them find it satisfactory and only 3 of them find it poor that too on a comparative basis.

If the respondents would purchase the Bata products again? 51

Table No: 13

PARTICULARS Yes No Total Chart No:13

RESPONDENTS 91 09 100

PERCENTAGE 91 09 100%

A near to whole majority of 91% customers are satisfied with the Brand Bata and said they will purchase Bata footwear again. Only a 9% said they would not choose as they would like to try different brands each time.

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If the quality of Bata products is up to the mark 

Table No: 14

PARTICULARS Yes No Total

RESPONDENTS 67 33 100

PERCENTAGE 67 33 100%

Chart No:14

Quality is one factor where the customers never compromise. A good 67  percent of the respondents agree that the quality of the Bata products is up to the mark but 33 percent of them feel that the quality is not up to the mark.

Respondents Attraction towards Brand Bata Table no:15 53

PARTICULARS Brand Name Reasonable price Quality Offers Given Total Chart No: 15

RESPONDENTS 12 28 46 14 100

PERCENTAGE 12 28 46 14 100%

Through the years Bata India has worked its way to create a brand name  because of which 12% of the surveyed customers opt for Bata. 28% are attracted due to the reasonable prices offered by Bata. Because of good quality 46% of the customers are attracted towards Bata. A 14% of them are attracted to Bata due to he various offers given.

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Availability of favorite choice in the nearest Bata Showroom

Table No:16

PARTICULARS Yes No Don’t know Total Chart No:16

RESPONDENTS 56 28 16 100

PERCENTAGE 56 28 16 100%

56% of the customers say that their favorite choice of footwear is available in their nearest Bata Showroom, 28% says no. The rest 16% says they don’t have a favorite choice and that they go with anything comfortable provided.

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Usage of products of any other footwear brand?

Table No:17

PARTICULARS Yes No Total Chart No:17

RESPONDENTS 56 44 100

PERCENTAGE 56 44 100%

A good 56% of the customers have brand faith towards Bata and 44% of them occasionally try out other brands too.

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Respondents satisfaction with Bata products with respect to overall quality

Table No:18 (A) Overall Quality PARTICULARS Excellent Good Satisfactory Poor Total Chart No:18

RESPONDENTS 24 60 12 4 100

PERCENTAGE 24 60 12 4 100%

When satisfaction of customers was gauged on the basis of overall quality of    products it was found out that 24% of the customers termed it excellent, 60% of them said it good,12 % of them were satisfied and only a 4% of them said its poor. 18(B) Respondents satisfaction with Bata products with respect to First Use Experience

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PARTICULARS Excellent Good Satisfactory Poor Total Chart No: 18( B)

RESPONDENTS 18 51 23

PERCENTAGE 18 51 23

8 100

8 100%

On the basis of first use experience, 18% of the surveyed customers termed Bata excellent, 51% said it is good, 23% said satisfactory and then rest 8% term it poor due to various reasons.

18(C) Respondents satisfaction with Bata products with respect to After Sales Service

PARTICULARS

RESPONDENTS

58

PERCENTAGE

Excellent

24

24

Good

48

48

Satisfactory

16

16

Poor

12

12

Total

100

100%

Chart No:18 (C)

On the basis of after sales service in this outlet at Mangalore, 24% of the customers term Bata excellent, 48% of them term it good, 16% of them find it satisfactory and only 12% of them find it poor. 18(D) Respondents satisfaction with Bata products with respect to Comfort

PARTICULARS

RESPONDENTS

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PERCENTAGE

Excellent Good Satisfactory Poor Total Chart No: 18(D)

16 64 16 04 100

16 64 16 04 100%

When satisfaction among the customers was measured on the basis of  comfort provided, 16% of the customers said that the comfort provided by Bata footwear is excellent, 64% said it is good, 16% of them said its satisfactory and only 4% found it poor or not up to the expected level.

Respondents suggestion towards improvements in Bata

Table No: 19

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PARTICULARS Designs and Style Quality Better Service Price Total Chart No: 19

RESPONDENTS

PERCENTAGE

58 15 17 10 100

58 15 17 10 100%

When asked to suggest some improvements in Bata, 58% said that Bata could introduce new designs and styles from new research and developments. 15% of them said that Bata can improve on quality, 17% suggested improvement on service. The rest 10% felt that improvement in  prices should be made. FINDINGS

The following are my findings after distributing questionnaire and after interacting with concerned customers of Bata outlet in trade center , at Mangalore. 61

•

It is found that the customers are very much satisfied with the   products and services given by Bata both when it comes to customer care and footwear.

•

When it comes to the products, more students opt for Bata Footwear products due to reasonable price and trendy styles.

•

The Bata footwear has proved to be a very comfortable and stylish brand which has an international brand under its wings called “POWER”.

•

Most of the people in and around Mangalore opt for Bata footwear due to various reasons such as well maintained stock  at the outlet, overall quality, comfort ability and also that they have products for all generations.

•

The earlier sandals had a few complaints regarding style and durability but the new products of Bata Footwear under the  brand “POWER” are more durable, stylish, and they use good rubber, rexin and leather which are competent with other brands with other brands like Reebok, Adidas and Puma.

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•

As per the customers’ need and suggestion, they are opening new outlets in different districts of Karnataka as well as in the upcoming malls and other shoppin centers in Mangalore.

•

In aspect to the overall performance that is durability, comfort, good quality raw materials, new looks and brand name in footwear industry makes Bata stand tall in the market and they are bound to have satisfied customers throughout India while they are at service.

•

The customers are very happy with the service provided by the Bata Footwear and they say that they provide well checked footwear to its customers.

•

Through survey I have come across that Bata Footwear   products have excellent efficiency and very little need to be maintained.

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SUGGESTIONS

The Bata outlet in Trade Center is doing very well with many customers in an around Mangalore, but yet there are few suggestions that I would like to make for the betterment and improvement of the outlet on regard of my  personal assessment and the survey conducted.

•

Firstly it would be nice if the company would open more sales outlets in different districts of Karnataka soon, as they are yet to open in this region.

•

With the over whelming growth of footwear industry in India it would  be advisable for Bata to introduce more classified products.

•

Improvement in the R&D to know the customer expectations and needs. Also, they can compete with other internationally known  brands like Reebok, Puma etc and stand tall in the international market with many other brands of their own.

•

Some of the respondents said that Bata provides only 75 days period of warranty for their products. They say that it would be good if they  provide at least 100 days of warranty period to their products.

•

Bata can also come up with high-end brands of footwear with better  quality in the ‘sportswear’ section so that they have a better stand in that sector too.

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CONCLUSION

A business that has deserved and won a high degree of customer  loyalty is generally among the first to profit from good times and one of the last to be affected by adverse conditions in the Indian footwear industry. Bata Footwear sees to it that it satisfies all its customers keeping in mind their likes and dislikes because they believe in delighting and satisfying the customer, which every business should attain to remain sound, healthy and  prosperous. The problems faced are solved very skillfully and quickly and the strategy of  the company is to have proper target groups, good quality products, competitive pricing strategy and smooth distribution and successful  promotional activities. They also believe in comfort of products, durability and customer satisfaction. As Bata Footwear. is a fastest growing footwear company in India which is already spreading its wings in International market, begins the move towards the international standards with dedication to excellence thus the future holds no fear thanks to the excellent and most efficient management staff  and also the new market policies of the Govt. of India. On a global basis. However, an in-depth conclusion cannot be drawn as consumer mind is ever changing with the changes in the economy. More over the topic is dealt with a subjective, more of conceptual one. This project has given me first hand knowledge of one of the leading footwear company in India. I found the study a very enlightening experience. I hope my study on this topic has gained valuable information for the company for providing better service in order to satisfy its customers as well as for the completion of my project. 65

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