IntroductionBata Pakistan Limited is occupied in manufacturing andselling of all type of shoes, besides selling goods and accessories. (Bata Pakistan Ltd (BATA.KA))Since 1942 Bata in Pakistan has been rendering its accommodationsto its valued customers by offering quality products. It was incorporated inPakistan as Bata Shoe Company Limited in 1951 and went public to become BataPakistan Limited in the year 1979. (Bata)Bata was a Companion of the Order of Canada. (J.Bata)The global shoemaking giant sells shoes andaccessories through nearly 4900 retail outlets; the company has 25 productionfacilities.
Bata has three main business divisions namely retail, wholesale,and export. Bata’s shoe products include school shoes, dress shoes, sandals,slippers, athletic shoes, casual shoes, etc. The company targets a broaddemographic of men, women and children. Some of its popular shoe brands includeBata Shoes, Bata Comfit, Marie Claire, Sandak, Bubble gummers, Weinbrenner,Hush Puppies, Power and North Star. (Zubari) Hush Puppies is the international brand, Bata uses the franchisingpower to supply the product in the Pakistani market. The target customersof this model are rich people. The weinbrenner shoe line is made up ofleather shoes and boots, style in low, mid, and high cut. Cuts or design aredirectly fashion, but can include materials which help to feel comfort in doingoutdoor strong works.
The shoes are casual in style closures generally withlaces and eyelets, sometimes supplemented with hooks, D-rings and straps withbuckles. Nike is a worldwide famous and popular athleticshoe brand. Bata carries this brand as a licensing. This brand is for adifferent segment of customers in Pakistan. Though it is an athlete shoe but inPakistan young generation wear it as a fashionable product. The target customerof this product is higher income group people. Power is alsoan athlete shoe which is considered as the alternative of Nike.
Power shoes arecheaper than Nike shoes. The target customer of this shoe is middle classpeople. North-Star is a trendy shoe focused to the young customer group.This shoe is cheaper than Nike and Power. This is considered as a seasonalproduct as the demand increase in winter. Comfit has an important feature in designand assembly of all the comfit shoes. This brand is focused on both comfort andstyle of shoes. Unit rubber, PVC, PU or TRR sole are commonly used in thisbrand.
“Get comfortable today” is a tagline commonly associated with this rangeof shoes. Sandak is plastic made bata product for lower income people to usein every season of the year. This shoe is also made for rough use for all levelof customers. Bubblegummers is the leading children’sfootwear brand in Latin America and has developed an extensive presence in Asiaand in Europe. Bubblegummers offers quality, comfortable, funny and colorfulshoes for the 0 to 9 old that assure the healthy growth of a child’s foot. (Bata Shoe Company Ltd, 2008-2009)To cater the middle upper income segment of themarket, 13 city concept stores were opened in Karachi, Peshawar, Rawalpindi,Mirpur, Gujranwala, Gujrat and Quetta. The company has a strong retail networkcomprising of more than 400 retail outlets, 467 registered wholesale dealers,13 wholesale depots, 28 wholesale distributors and 41 DSP wholesale franchisesacross the country.
Bata Pakistan does not have its scope limited to thedomestic market, it also exports footwear. Recent performance Bata Pakistan isamong a selected group of local companies that generate over Rs.10 billion inannual revenue. Bata Pakistan improved its performance during the third quarterof 2006 with total net sales at Rs.970 million compared to Rs.706.9 million inthe corresponding period of 2007, the strong sales growth trend has continuedto be maintained. On July 10, the stock closed at Rs.
3340 per share, with avolume of mere 20 shares. Such mounting competition has also muted Bata’sgrowth in retail outlets – only 27 outlets were added across the nation from2011 through 2014. In the recently concluded CY15, the company reported salesof Rs.14.
8 billion – 7.5 percent more than the previous period. As of 2016,Bata had 412 retail outlets and 13 wholesale depots across the country. TheBata scrip is extremely thinly-traded on the local stock market. In the yearending June 30, 2017, the stock’s average daily volume stood at just 96 sharesper day. After a lackluster CY16, Bata didn’t have a great start to CY17. Inthe first quarter ended March 31, 2017, the firm suffered a top line fall of 5percent year-on-year.
In the end, net profit suffered a bigger decline, of 17percent year-on-year, due to increases in distribution and administrativeexpenses. Going forward, Bata’s challenge will be to reinvigorate its top line.On one hand, Bata needs to expand its retail stores, especially in rural areas.On the other hand, it needs to make its urban retail footprint more modern andcustomer-friendly. (Zubari) Literature Review:Customer Satisfaction”Everyone knows what satisfaction is, until asked to give adefinition. Then, it seems, nobody knows.” This quote from Richard L.
Oliver(1977), respected expert and long time writer and researcher on the topic ofcustomer satisfaction, expresses the challenge of defining this most basic ofcustomer concept. Building from previous definitions, Oliver offers his ownformal definition: Satisfaction is the consumer’s fulfillment response. It is ajudgment that a product or service feature, or the product or service itself,provides a pleasurable level of consumption related fulfillment.The word satisfaction first appeared in English during thethirteenth century. The word satisfaction itself is derived from the Latinsatis (meaning enough) and the Latin ending – faction (from the Latin facere –to do/make).
Early usage centered on satisfaction being some sort of releasefrom wrong doing. Later citing of the word emphasis satisfaction as a “releasefrom uncertainty” (The Oxford Library of Words and Phrases, 1993). Modern usageof the word has tended to be much broader, and satisfaction is clearly relatedto other words such as satisfactory (adequate), satisfy (make pleased orcontented) and satiation (enough).
The difficulty faced when trying to defineany word is that the meaning often depends on the context in which the word isused. In a marketing context, satisfaction is used to have a more “specific”meaning. It appears that there are two basic approaches adopted in attemptingto define the concept of customer satisfaction. Satisfaction can be viewed asan outcome of a consumption activity or experience; however, it is alsorepresented as a process.Currently, the most widely adopted description of customersatisfaction is that of a process; an evaluation between what was received andwhat was expected (Oliver, 1977, 1981; Olson and Dover, 1979; Tse and Wilton,1988). By looking at satisfaction as a process, these definitions concentrateon the antecedents to satisfaction rather than satisfaction itself.
Consequently, much research effort has been directed at understanding thecognitive processes involved in satisfaction evaluations. This strand of theoryappears to have origins in discrepancy theory (Porter, 1961) and a number ofauthors have, over the years, used some form of comparison to modelsatisfaction. Early contributions include Contrast Theory (Cardozo, 1965;Howard and Sheth, 1969), which supposed that consumers would exaggerate anycontrasts between expectations and product evaluations. This was developed intoassimilation-contrast theory (Anderson, 1973).Many studies support the occurrence of assimilation (Olshavsky andMiller, 1972; Olson and Dover, 1979).
Customer satisfaction, a business term,is a measure of how products and services supplied by a company meets orsurpass customer expectation. It is seen as a key performance indicator withinbusiness and is part of the four perspectives of a Balanced Scorecard. In acompetitive marketplace where businesses compete for customers, customersatisfaction is seen as a key differentiator and increasingly has become a keyelement of business strategy. There is a substantial body of empiricalliterature that establishes the benefits of customer satisfaction for firms.A further point concerns expectations that are defined differentlyin the satisfaction and quality literature.
In the satisfaction literature”expectations reflect anticipated performance” (Churchill and Suprenant, 1982,p. 492) made by the customer about the levels of performance during atransaction. On the other hand, in the service quality literature, expectationsare conceptualized as a normative standard of future wants (Boulding, Kaira,Staelin & Zeithami, 1993). These normative or ideal standards representenduring wants and needs that remain unaffected by the full range of marketingand competitive factors. Normative expectations are therefore more stable andcan be thought of as representing the service the market oriented provider mustconstantly strive to offer (ZeIthaml, Berry & Parasurama, 1993).Assuming that the customer is capable of evaluating the serviceperformance, the result is compared to expectation prior to purchase orconsumption (Oliver, 1980). In the past, corporation did not pay much attentionto customer satisfaction but were focused more on attracting new customers toexpand their market share. Now, due to lower sales resulting from productmaturity, corporations are turning around to stabilizing their existingcustomers to ensure their market share (Dhabolkar & Thorpe, 1994).
Thus theconcept of customer satisfaction is under further scrutiny. For the current study,the definition put forward by Oliver will be the construct, as it is the mostappropriate for the selected study.”It’s not good enough to go to your customer after you have soldthem the product and ask them how satisfied they were. What you need to do isgo to your customers before you develop the product or service and find outwhat is important to them.” (Arnold Weimerskirch, November 1997) As thiscomment illustrates, satisfying customers begins the moment an organizationdecides to market a product, a service, or a product and service bundle. Thisarticle describes a measurement process for assessing and predicting customerreactions to the features included in the product/service bundle.
Efforts toimprove customer satisfaction often lead companies to the conclusion thatproducts or services need to be redesigned, because no lesser action trulysatisfies. Further, companies are motivated to introduce new products andservices by changes in available technology, by competitor initiatives, and bythe classic business desire to reap the profits of an effective differentiationstrategy. Objective of the study: To examine the current state of Bata Shoe Company (Pakistan) ltd in the market To examine the perception about Bata shoe in consumer mind To analyze the impact of Convenient Store Location on customer satisfaction To analyze the impact of Quality of shoes on customer satisfaction To analyze the impact of Comfort of shoes on customer satisfaction To analyze the impact of Knowledge of the staff on customer satisfaction To analyze the impact of Helpfulness of the staffs on customer satisfaction To analyze the impact of Value for price offered by store on customer satisfaction To analyze the impact of Advertising on customer satisfaction To analyze the impact of Layout and design of store on customer satisfaction To identify customer satisfaction level of Bata and compare Bata with other store. To analyze the impact of Selection of colors, style and sizes on customer satisfaction Problem statement:To survive in an ever growing industry, it isvery important for any company to know its customers level of satisfaction tothe products and service provided by the company. BATA ShoesCompany is going towards decline in these days. The main problem are high costof raw material, less variety of shoes, less number of branches, lessinnovation, less advertisement, lack use of latest technology, higher taxes andlow quality.
BATA brand is badly affected by the higher taxes and lessinvestment in R&D (Research and Development). Due to these problems BATACompany is shifted to other countries like Bangladesh, India. Significance: Thisresearch would be important for BATA brand owners and also provide suggestionhow to make their performance better. This study might be important provideguideline to BATA brand owners to focus on independent variables and resolvetheir problem like innovation.
This research would be beneficial for BATA shoebrand to again reach on the top. This research would also very fruitful forresearcher and student in future because they will take guideline for write ownarticles. BibliographyBata. (n.d.).
Retrieved December 25, 2017, from http://bata.pk/bataglobal/faces/jsp/static.jsp?articleid=2155: http://bata.pk/bataglobal/faces/jsp/static.jsp?articleid=2155Bata Pakistan Ltd (BATA.KA).
(n.d.). Retrieved December 25, 2017, from https://www.reuters.com/finance/stocks/companyProfile/BATA.KA: https://www.reuters.
com/finance/stocks/companyProfile/BATA.KABata Shoe Company Ltd. (2008-2009).
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wikipedia.org/wiki/Thomas_J._Bata: https://en.wikipedia.org/wiki/Thomas_J._BataZubari, M.
(n.d.). Retrieved from https://fp.brecorder.com/2016/02/2016022318907/: https://fp.brecorder.com/2016/02/2016022318907/