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CHAPTER 1 INTRODUCTION Todays world is more conscious about society whenever they make a purchase decision.

The current ethical, religious, moral and environmental degradations have compelled the mankind to think of it seriously as no more deterioration is affordable for the universe. Environmental degradation and deterioration is the most threatening factor for todays mankind. Humans are facing global warming, sea drying out problem, change in seasons patterns, contaminated climate and water and finally the elimination of various species which are part and parcel for the healthy survival for the human being. Now brands are known for their corporate social responsibility and not merely on the basis of product only. Researchers have noted that it is imperative to take a closer look at how consumers develop relationship or interaction with brands and be able to form communities of brand in their own personal lives). Dual mediation model can be important to investigate the attitude of consumer that is lead by an advertisement that further leads to their purchase behavior or intention (PI). For the purchase intentions a consumer may consider environmental issues. Follows and Jobber (2000) has addressed this issue of environmental impact upon brand in context of public and corporate policy. So in first hand environmental consequences has been taken as an independent variable along with the consumer brand attachment, attitude towards the brand, and core brand image. Further how these independent variables along with the above mentioned independent variables will impact the purchase intention (dependent variable) will be studied. A brand at its root is merely a name, symbol, sign or design that is used to distinguish one product or service from its competitors according to the American Marketing Associations definition. But there is more to a brand then the mere symbol. There is a

component to a brand that causes consumers to be loyal, there is a component to a brand that causes consumers to pay more no mere sign or symbol could cause this, there must be more to a brand. The reputation of a brand plays a large part in a consumers ultimate purchase decision and because of this branding must be understood so that it can be appropriately used by different marketers in order to properly brand a product to create the highest perceived quality or brand equity in the minds of the consumer. A brand is a symbol of reputation it represents an investment a company has made over time in its products and development to ensure that their brand is perceived to have a high level of quality. Markets are not closed out to new brands entering the field. There are several ways for a new brand name to gain a positive reputation. It is easier to create a brand extension that allows you to enter a new industry there are several examples of companies that choose to create a new brand independent of their existing brand to enter a new market or market segment. The new brand needs to exercise caution when it chooses its signal of quality when entering a market.

CHAPTER 2 WHAT IS CONSUMER BEHAVIOR? Activities people involved in when selecting, purchasing, and using products so as to satisfy needs and desires. Consumer behavior involves the psychological process that consumers go through in recognizing needs, finding ways to solve these needs, making purchase decision (e.g., whether or not to purchase a product and, if so, which brand and where), interpret information, make plans, and implement these plans (e.g., by engaging in comparison shopping or actually purchasing a products). SOURCES OF INFLUENNCE OF THE CONSUMER: The consumer faces numerous of influence. Often, we take cultural influences for granted, but they are significant. An American will usually not bargain with a storeowner. This, however, is common practice in much of the world. Physical factors also influence our behavior. We are more likely to buy a soft drink when we are thirsty. For example, and food manufacturers have found that it is more effective to advertise their products on radio in the late afternoon when people are getting hungry. A persons self image will also tend to influence. what he/she will buy. An upwardly mobile manager may buy a flashy car to project an image of success. Social factors also influence what the consumers buy-often, consumers seek to imitate others whom they Admire, and may buy the same brands, the social environment can include both the mainstream culture (e.g., Americans are more likely to have corn flakes/ham and eggs for brake past than to have rice, which is preferred in many Asian countries) and a sub culture (e.g., rap music often Appeals to a segment within the population that seeks to distinguish itself from the main stream population). Thus sneaker manufacturers are eager to have there products worn by admired athletes. Finally, consumer behavior is influences by learning you try a hamburger and learn that it satisfies your

hunger and tastes good, and the next time you are hungry, you may consider another hamburger. DECISION-MAKING INVOLVE SEVERAL STEPS

1.Need recognition 5.Purchase evaluation 2. Information search

4.Purchase decision

3. Evaluation of alternatives

Problem recognition you realize that something is not as it should be. Perhaps, for example, your car is getting more difficult to start and is not accelerating well. Information searchwhat are some alternative ways of solving the problem? You might buy a new car, buy a used car, take your car in for repair, ride the bus, ride a taxi, or ride a skateboard to work. A customer can obtain information from several sources:

Personal sources: family, friends, neighbors etc.

Commercial sources: advertising, sales forces retailers, dealers, Packaging, point-of sale displays. Public sources: news papers, radio, television, consumer organizations, special magazines. Experimental sources: handling, examining, using the product Internal and external search for information to make a decision Internal search: Scan memory. External search: shopping, personal sources, public media, Advertisements Evaluation of alternatives: A skateboard is inexpensive, but may be ill-suited for long distances and for rainy days. Purchase stage, and sometimes a post-purchase stage (e.g., you return a product to the store because you did not find it satisfactory), in reality, people may go back and fourth between the stages. For example, a person may resume alternative identification during while evaluating already known alternatives. The decision maker(s) have the power to determine issues such as: Whether to buy? Which product to buy? Which brand to buy? Where to buy it? And When to buy?

Note, however, that the role of the decision maker is separate from that of the purchaser. From the point of view of the marketer, this introduces some problems since the purchaser. can be targeted by point-of-purchase (POP) marketing a effort that cannot be aimed at the decision maker. Also note that the distinction between the, purchaser and decision maker be somewhat blurred the decision maker may have to make a substitution if the desired brand is not in stock, the purchaser may disregard institutions (by error or deliberately). BUYER BEHAVIOUR SOCIAL FACTORS: Introduction: A customers buying behavior is also influenced by social factor, such as the group to which the customer belongs and social status. In a group, several individuals may interact to influence the purchase decision. The typical roles in such a group decision can be summarized as follows: Initiator: the people who first suggest or think the idea of buying a particular product or service. Influence: a person whose view or advice influences the buying decision. Decider: the individual with the power and/or financial authority to make the ultimate choice regarding which product to buy. Buyer: The person who concludes the transaction. User: The person (persons) who actually uses the product or service. INDIVIDUAL FACTORS THAT SHAPE BUYER BEHAVIOUR PROCESS HIGH INVOLVEMENT LOW INVOLVEMENT Extensive problem-solving (EPS) Limited problem solving (LPS)

Reutilized response behavior (RRB) The various purchase influence factors are as follows:

Person al

Age and life cycle stage

Social Cultural
Culture Family Sub culture Social culture Roles and status Life style Reference groups Economic situation Occupation

Psycholo gical
Motivation Perception Learning Beliefs and attitudes

Buyer s

Personality & self concept

CULTURAL FACTORS Cultural factors exert a broad and deep influence on consumer behavior. The marketer needs to understand the role played by the buyers culture, subculture, and social class. Culture The set of basic values, perceptions, wants, and behaviours learned by a member of society from family and other important institutions

Subculture A group of people with shared value systems based on common life experiences and situations.

Social classes Relatively permanent and ordered divisions in society whose members share similar values, interests, and behaviors. SOCIAL FACTORS A consumers behavior also is influenced by social factors, such as the consumers small groups, family, and social roles and status. Groups Two or more people who interact or accomplish individual or mutual goals. Family A family is a domestic group of people, or a number of domestic groups linked through descent (demonstrated or stipulated) from blood relation, marriage or adoption. Roles and status A person belongs to many groups- family, clubs, organisations. The persons position in each group can be defined in terms of both role and status.

PERSONAL FACTORS A buyers decisions also are influenced by personal characteristics such as the buyers age and life cycle stage, Occupation, economic situation, lifestyle, and personality and selfconcept.

Age and life-cycle stage People change the goods and services they buy over their lifetimes. Tastes and preferences changes as lift-cycle goes. Personality and self concept A persons distinguishing psychological characteristics that lead to relatively consisting and lasting responses to his or her own environment. PSYCHOLOGICAL FACTORS A persons buying choices are further influenced by four major psychological factors: motivation, perception, learning, and attitudes. Motivation A need that is sufficiently pressing to direct the person to seek satisfaction of the need. Perception The process by which people select, organize, and interpret information to form a meaningful picture of the world. Learning Changes in an individuals behavior arise from experience. Beliefs and attitudes A descriptive thought that a person holds about something is his/her belief. A persons consistently favorable or in favourable evaluations, feeling, and tendencies toward and object or idea is attitude.


Brief History of Bata Bata is one of the world's leading footwear retailers and manufacturers with operations across 5 continents managed by 4 regional commercial business units (CBUs). The MBU approach provides quality resources and support in key areas to the companies operating in similar markets 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's strength lies in its worldwide presence. While local companies are self-governing, each one benefits from its link to the international organization for back-office systems, product innovations and sourcing. 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. Bata Pakistan was established in 1942 when Pakistan came into being, it was ready to serve the nation. It was incorporated in Pakistan as Bata Shoe Company (Pakistan) Limited in 1951 and went public to become Bata Pakistan Limited in the year 1979. Since its inception, the company has not only maintained a reputation of manufacturing high quality footwear for all the socioeconomic segments of the society but has also been designing shoes in accordance with the changing fashions and trends.

During the last year Bata produced over 17.2 million pairs and sold 16.9 out of them with the help of their large distribution network of 400 Retail Stores and Agencies, 13 Wholesale Depots, 23 Distributors and about 400 Registered Wholesale Dealers who are selling goods as independent retailers. In 2009 the company generated turnover of Rs.6.5, billon showed an increase of 26% against previous year. The Company has an organized Export Department which is constantly engaged in exploring new export markets in order to earn the foreign exchange for the country. During the current year i.e. 2010, it is expected to export 1 million pairs of various styles of footwear to European and African countries. Bata is a multinational company and has played a vital role in the economic progress of Pakistan. It has transferred sophisticated technology and business skills to the country and provides direct and indirect employment to about 10,000 people. Bata also supports a large number of local manufacturers by buying raw materials from them. As corporate responsible citizen Bata is actively fulfilling its responsibilities since when its started its business in the country. We are permanently patronizing many charitable organizations and helping them in the form of cash and free shoes. The renowned names on our list are S. O. S Children Village, Shoukat Khanum Cancer Hospital and Rising Sun Institute. Besides these we have also running many welfare schemes for our own employees. Bata has always been the market leader and in order to maintain its leadership it has invested millions of rupees in updating its systems and equipment during the last few years. This will enable the company to expand, modernize and develop its operations and in the process provide additional employment opportunities.

Bata the market leader is well equipped to cater the customers demands and to meet future challenges. Bata today

Serves 1 million customers per day Employs more than 50,000 people Operates 5000 retail stores Manages a retail presence in over 70 countries Runs 27 production facilities across 20 countries

Market Analysis The market for the footwear industry is very big. Because the every person has to wear a shoe or sandal for its feets. So every individual whether he/she child, young or old has to wear something for its feets. This market is growing continuously, because there is an increase in population. That will result in increasing demand for shoes. Also there are some social factors as customers interest more on branded products.

Bata is a multinational company with more than 100 years of experience. Bata is
working successfully in 70 countries with more than 5000 outlets. In Pakistan scenario it has a one national level competitor Service shoes. Bata has a more coverage in Pakistan market with 500 outlets, so it has almost 60% of market share. Bata is targeting to every possible segment exist in Pakistan. So their demand is influence by many factors. When there is new classes start in schools, there sale was

boost up for the school shoes. In start of the every season, on weddings, occasions, festivals and major increase on EID festival. Yes market is broken down in many segments related to every brand. In school shoes category, it is further segmented. For school shoes main factor for segmentation is price. Bata provide shoes in almost every range, which is start from 399 to 749 Rs. No demand is not consistent over time. It is fluctuate due to cyclical factor, it goes high when there is a new year start for the schools, also on different occasions and festivals such as EID. Bargaining power of suppliers Bargaining Power of supplier means how strong is the position of a seller. How much your supplier have control over increasing the Price of supplies. Bata has the control over their suppliers. Company depends more than one supplier for the raw material. So suppliers has the low bargaining power in this industry. Bargaining power of Buyers Bargaining Power of Buyers means, how much control the buyers have to drive down your products price, Can they work together in ordering large volumes. Bata distribute their products to company owned outlets. The products for who has the dealership, company has a fix margin on the product. In this way buyers had not any strong bargaining power.

SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing Bata. Strengths: 70 years experience in shoe industry Experienced management Strong brand name Extremely strong relationships with suppliers. Excellent staff who are well trained and customer attentive. Strong perception of red color which is associated by people. Brand equity Footwear for the entire family Financially strong Conveniently accessible outlets in various parts of the country Targeting all income segments Nationwide retail network Weaknesses:

Losing competition because of the other big players like Servis, Adidas and Nike, etc. Not too much stylist so it is losing the attraction of the customer, especially in the Youth segment. They dont have any powerful brand ambassador to promote their brand. They havent promoted themselves thoroughly, invested very less in their add campaign. Outsourcing can make it reliable on others No participation form young generation in decisions No efficient response from CRD(customer relationship department) to customer needs No proper planning regarding Advertisement No variety in fashionable shoes

Opportunities: A growing segment of the market that is increasing. Big gap of market to be captured. The ability to operate on lean overhead relative to competitors. E-Commerce Acquired, Partnership with small players. Entering new segments of market Innovative products New mediums for advertisement Threat: Introduction of new brands in the market. Young generation is attracted to the other branded shoes like Adidas, Nike, and H.P etc. At present law and order situation. Price wars with competitors Competitors Economic threat

Changing in consumer preferences Analyze Buyer Behaviour This will depend totally on product category. For our project we choose school shoes for children. The purchase for the school shoes the children force their parents for new shoes, schools have the restrictions, and also parents felt the need for the new shoes. But mostly children demand their parents for new shoes. Variety, quality and then price, those are variables customers used for the evaluation of the alternative products. The most important criteria in choosing school shoes is quality, and this will not change in future. Parents and mostly mothers came for the purchase of school shoes. Both are choosing the shoes but the final decision is made by mothers. Bata also in their ads featuring mother as a guiding person who has the responsibility to ready the childrens for the school. So it creates the sense of women approval for the purchase of school shoes. Payments made by the fathers, whether they paid in stores or give mothers for shoes purchase. The product is used by the childrens after the purchase. The shoes are used for school and also for events and festivals. It is evaluated on the basis of its reliability that it requires less maintenance and its durability.

Brand Elements & Structure The logo used by the company is The brand elements of Bata are their colour, which is red. Their specific font type, style that is italic. This is protectable because its registered in internationally through legal bodies. Name of Bata is not meaningful but that is suggestive. Its show brand of Bata, which is owner name.

Its easily transferable to all the other brands. And easy adoptable. Bata didnt use any slogan individually. But it has different slogans for every brand. Under Bata children's Programmer (BCP), Bata Pakistan has actively participated in relief & rehabilitation activites to help individuals displaced by the flood. Under Bata Children Program Company build a school for flood affected area of Kot Addu Southern Punjab.

Yes all of these are memorable

CHAPTER 4 CONCLUSION The main objective of the study is to find out the EFFECT OF BRANDING ON CONSUMER PURCHASING DECISION of Bata Shoes and to study about various factors affecting Purchase Decision. The factors affecting purchase decision are Advertisement, Price, Market Potential, in this study all these factors are analysed and found that the customers are satisfied on all basis. The customers are aware of the product very well. The customers are giving preference to the products of Bata because of the Brand power.


Philip Kotler 2003 Marketing management-Tata McGraw-Hill Publishers Delhi Albert J. Dells Bittas 2006 Consumer Behavior Excel Publications Delhi David L. Loudon 2002 Consumer BehaviorVasanth Publications Delhi

Microsec- The rise of Indias leading shoe Manufacturer http://www.microsec.com/article589645213/ Indian Footwear Industry http://www.indianindustry.com/footwear/ Wikipedia- footwearinduatry in India http://wikipedia.com