ADIDAS

1) MARKETING :Adidas-Group has successfully established their

brand image by getting sports personalities like, David Beckham to
endorse their products. Consumers are able to relate with Adidas
products through the eyes of their Sports ‘Stars’.

2) RESEACH AND DEVELOPMENT :Expenses set aside for

Research & Development has not gone wasted. Adidas has always
been coming up with innovative ideas and designs to launch
fashionable and trendy products compared with their competitors.
They have registered trademark rights as well as Patent Protection
Policy for their key products, technologies and innovations in major
markets for footwear, apparel and hardware.
Marketing research that targets consumers' influences and financial
implications is a worthwhile sports marketing effort. To implement
effective marketing strategies in a specific country, it is pertinent to
understand consumer behavior in that country. In this paper, 11
major findings related to the unique behavior, attitudes, and buying
patterns of Chinese sports consumers are highlighted. From the
results of questionnaires administered to 2,155 mainland Chinese
consumers in 10 selected cities, different economic, social, and
personal factors in the China's environment are determined.

Economic Factors: Unlike the past, when most income was spent
on basic necessities such as food and clothing, the current Chinese
consumer spends more money on entertainment and durable goods.
However, the general tendency of the Chinese consumer to have
stronger purchasing power and the fact that their buying decisions
reflect creative purchasing beyond bare necessities are not reflected
in sports marketing. It could be concluded that not all Chinese
consumers are willing to spend a certain percent of their income on
sports products. This phenomenon can be explained either by
consumers' lack of sufficient income or too high a price for sports
products. On the other hand, however, a great potential exits for
marketers who appeal to the Chinese consumers with creative
strategies. Those who know desires and needs in specific areas,
while being sensitive to economic restraints, may capture a
slumbering Chinese market.

Social and Culture Factors: With the implementation of an "open-

door policy" in China, the lifestyle of the Chinese people changes
constantly. Several social and cultural trends may stimulate
marketers to be optimistic about Chinese consumers.

3) MARKET SHARE : Adidas has a market capitalization of about

$8.4 billion, and reported net income of $423 million last year on
sales of $8.1 billion. Reebok reported net income of $209 million on
sales of about $4 billion.

4) MARKETING STRATEGY : As a leader in the sporting goods

industry, Adidas-Group is exposed to a global marketplace, offering
significant growth and profitability potential for all their brands.
Identifying, assessing and exploiting opportunities in a structured
and organized way is fundamental for them to achieve medium- and
long-term revenue and profitability goals. In addition to seizing
opportunities they have continuously strive to deliver strategic
initiatives at a Group and brand level in order to capture future
growth and profitability.

The strategies adopted by Adidas-Group have been successfully

implemented in several areas. They always ensure that the needs
of various consumer groups are fulfilled by going into partnership
with high-end designers and technology.

5) ACQUISITION/MERGER :Adidas-Group bought over Reebok to

establish a stronger foothold in the Sports Industry. This merger is
indeed a success which has achieved significant sales growth.
Merger of Adidas & Reebok complement each other in competing
with their competitors, Nike; and is more cost efficient and
beneficiary to both brands with Reebok’s strong presence in US
market and the global recognition of Adidas.
6) MARKET SEGMENTATION : can be done in many ways,
depending on how you want to slice up the pie, three of the most
common types are:

• Geographic segmentation – based on location such as home

addresses;
• Demographic segmentation – based on measurable statistics,
such as age or income;
• Psychographic segmentation – based on lifestyle preferences,
such as being urban dwellers or pet lovers.

7) SWOT ANALYSIS :

Strengths
• Competitive pricing
Weaknesses
• Good financial position
• High cost structure
• Effective Marketing Strategy
• Over pricing
• Market Leadership
• Low quality
• Strong online presence
products/services
• Strong brand
• Limited product line
• Strong international operations
• Strong distribution chain
Opportunities Threats
• Change in consumer lifestyles • Competition from foreign
• Available technological markets
innovations • Competitor's actions
• Entering new markets • Change in consumer
• Expand customer base lifestyles
(Geographically or through new • Changing consumer
products) patterns
• Expand product/service lines • Growing power of
• Market Diversification customers to set the
• Merger or takeover price
• Growing power of
suppliers to set the price
 • Financial slowdown
• Increase in taxation
• New competitors entering
the market
• Price war between
competitors

8) MARKETING IMPLICATIONS :

It is generally agreed that a great potential exists in the Chinese

sports market. However, questions concerning political stability, the
uncertainty of economic development, and cultural differences have
not only slowed Chinese sports marketing efforts, but have caused
confusion and indecisiveness among sports marketers who strive to
implement effective marketing strategies in China.

The marketing mix that should be modified to accommodate the

Chinese situation includes: 1) choosing target market segments; 2)
determining the services and products to be offered; 3) selecting
appropriate pricing strategies; 4) designing promotional programs;
and 5) providing a proper distribution system.

9) TYPES OF RESEARCH :

 Exploratory Research
 Designed to generate basic knowledge, clarify relevant
issues uncover variables associated with a problem,
uncover information needs, and/or define alternatives for
addressing research objectives.
 A very flexible, open-ended process.
 Descriptive Research (who, what, where, how)
 Designed to provide further insight into the research
problem by describing the variables of interest.
 Can be used for profiling, defining, segmentation,
estimating, predicting, and examining associative
relationships.
  Causal Research (If-then)
 Designed to provide information on potential cause-and-
effect relationships.
 Most practical in marketing to talk about associations or
impact of one variable on another.

NIKE
1)MARKETING STRATEGY : i) Product: It have all range of
products from kids, gals, mens, walker shoes, etc. Initially they
faced problem as they were targeting only sports persons, however
very soon revised their strategy as they observed Indian more to
wear Sports shoes when they wear causals (Jeans, etc.) other than
sports

ii) Promotion: During event such as school opening time, holdings,

events, etc. Their main promotion strategy for any particular
country is to endorse their brand with very strong brand personality
like tiger woods, etc.

iii) Price: They are positioning themselves in terms of quality,

technology, etc. so definitely will charge premium charges.

iv) Place: Previous it is observed that nike as other company were

selling foot ware through channel partners. We usually purchase
shoes from shop when it is need. However looking growth of India
retail industry, they try to reach 'n' no. of consumers to know their
needs betters, and develop their product accordingly. At the same
time they can increase their prospect and real customer by making
them FEEL --> DP ---> LEARN buying behavior.

2) MARKET SHARE : After the first quarter of 2000, Nike products

comprised more than 39% of the footwear market, including an
astounding 65.5% of the basketball shoe market. Although down
from last year's numbers (48.9% of the overall market and 73.6% of
the basketball shoe market), Nike continues to dominate the
footwear industry.

In addition to its stronghold on the basketball shoe market, Nike's

market share ranks first for cleated shoes (56.6%), second for
aerobic shoes (22.7%) and casual shoes (12.0%) and third among
court/fitness shoes (16.3%).

Second among overall footwear is Adidas with a market share of

15.1%. After one quarter last year, Adidas was in the same position,
holding the second highest overall market share (16.9%). In 2000,
Adidas has closed the gap on Nike overall and ranks second in
basketball shoes and cleated shoes.

Remaining consistent from 1999-2000 is Reebok who's market share

is 10.9% compared with last year's 10.9%. While remaining third in
overall market share, Reebok continues to dominate the aerobic
shoe market with a 61.4% market share, up from last year's first
quarter share of 56.4%.

Making a considerable jump from 1999 to 2000 is New Balance

who's market share went from a 1999 first quarter percentage of 3.7
to a 2000 percentage of 9.4

3) MARKET SEGMENTATION : Nike's typical target market is

athletes, but specifically male athletes generally between the ages
of 15

4) SWOT ANALYSIS : Strengths

• Nike is a very competitive organization. Phil Knight (Founder and
CEO) is often quoted as saying that ‘Business is war without bullets.’
Nike has a healthy dislike of is competitors. At the Atlanta Olympics,
Reebok went to the expense of sponsoring the games. Nike did not.
However Nike sponsored the top athletes and gained valuable
coverage.

• Nike has no factories. It does not tie up cash in buildings and

manufacturing workers. This makes a very lean organization. Nike is
strong at research and development, as is evidenced by its evolving
and innovative product range. They then manufacture wherever
they can produce high quality product at the lowest possible price. If
prices rise, and products can be made more cheaply elsewhere (to
the same or better specification), Nike will move production.

• Nike is a global brand. It is the number one sports brand in the

World. Its famous ‘Swoosh’ is instantly recognizable, and Phil Knight
even has it tattooed on his ankle.

Weaknesses

• The organization does have a diversified range of sports products.

However, the income of the business is still heavily dependent upon
its share of the footwear market. This may leave it vulnerable if for
any reason its market share erodes.

• The retail sector is very price sensitive. Nike does have its own
retailer in Nike Town. However, most of its income is derived from
selling into retailers. Retailers tend to offer a very similar experience
to the consumer. Can you tell one sports retailer from another? So
margins tend to get squeezed as retailers try to pass some of the
low price competition pressure onto Nike.

5) ACQUISITION : As of November 2008, Nike, Inc. owns four key

subsidiaries: Cole Haan, Hurley International, Converse
Inc. and Umbro.

 Nike's first acquisition was the upscale footwear company Cole

Haan in 1988.
 In February 2002, Nike bought surf apparel company Hurley
International from founder Bob Hurley.
 In July 2003, Nike paid US$305 million to acquire Converse Inc.,
makers of the iconic Chuck Taylor All Stars.
 On March 3, 2008, Nike acquired sports apparel supplier Umbro,
known as the manufacturers of the England national football
team's kits, in a deal said to be worth £285 million (about US$600
million).
 PUMA
Puma AG is among the world's leading manufacturers of athletic
shoes, sportswear, and accessories. The company is perhaps best
known for its soccer shoes and has sponsored such international
soccer stars as Diego Armando Maradonna and Lothar Matthäus.
The company also offers lines shoes and sports clothing, designed
by Lamine Kouyate, Amy Garbers, and others. Since 1996 Puma has
intensified its activities in the United States where it has a market
share of eight percent. Puma owns 25 percent of American brand
sports clothing maker Logo Athletic, which is licensed by American
professional basketball and football leagues. The American
entertainment group Monarchy/Regency owns 32 percent of Puma.

In the small town of Herzogenaurach, not far from the German city
of Nuremberg, two brothers laid the foundation for what would
become the European capital of sportswear. Adolf and Rudolf
Dassler were born into a poor family at the turn of the 19th century.
Their father, Christoph Dassler, was a worker at a shoe factory,
while their mother, Pauline Dassler, ran a small laundry business. At
age 15 Rudolf Dassler started working at the same shoe factory as
his father and soon showed the qualities of an entrepreneur. He was
energetic, persistent, and ambitious, and he saved his hard-earned
money instead of spending it right away. However, it was not until
after World War I that he had a opportunity to prove himself in
business. After the war, Rudolf Dassler took his first positions in
business management, first at a porcelain factory and later in a
leather wholesale business in Nuremberg.

In the early 1920s Rudolf Dassler decided to go back to

Herzogenaurach and team up with his brother Adolf in a business
partnership. Their company, which was incorporated as the
Gebrüder Dassler Schuhfabrik in 1924, produced slippers and
outdoor shoes. Rudolf Dassler ran the business, while Adolf took
care of the technical operations and production. Soon they realized
that there was not a particularly promising market for their shoes
and so switched their focus to the manufacture of track shoes and
football boots, a market that was just getting started at that time.
With a great deal of luck the company acquired its first major client,
the sports club in Herzogenaurach, which ordered no fewer than
10,000 pairs of athletic shoes in 1925. Thus, despite the ongoing
worldwide economic depression in the late 1920s, the Dassler
company took off and gained a reputation among athletes and
sporting goods companies. Half of all athletes at the Olympic Games
in Amsterdam in 1928 wore Dassler shoes. In 1936, African-
American track star Jesse Owens brought the company into the
public eye when he won four gold medals at the Olympic Games in
Berlin wearing Dassler shoes.

Three years later World War II broke out. Although the brothers
could have given up for a number of reasons during the war, it was
not this world-shattering event that led to the Dassler company's
sudden end, but a homemade war of a different kind. In 1948, the
two brothers had a serious falling-out, and they stopped talking to
each other. Their company was split into two new companies: Adolf
Dassler formed his own business named adidas, combining his
nickname Adi with the first three letters of his last name; Rudolf
Dassler set up his own shop called Puma Schuhfabrik Rudolf Dassler.
The two brothers had become competitors.

A number of world-class athletes, especially runners and soccer

players, helped the young Puma brand gain acceptance. In 1950, at
the first international soccer match after World War II, several
German players wore the Puma "Atom" shoe. The Olympic Games in
1952 in Helsinki were a spectacular success for Puma and opened
the British market to the young company. The American Olympic
Committee made Puma its official shoe supplier in 1952 and again
1956. In 1952 the American women's 400-meter relay team won the
Olympic gold medal in Puma running shoes. Puma's image was also
carried around the world by the rising soccer star Pelé, the Brazilian
"king of the stadium" who favored Puma's "King" shoes. After some
early difficulty, the company's export business began to thrive.
Puma shoes were shipped to 55 countries on five continents. The
first licensed production line was opened in Austria. In 1959 Rudolf
Dassler's firm was transformed into Puma Sportschuhfabriken Rudolf
Dassler Kommanditgesellschaft, as Dassler's wife and his two sons,
Armin and Gerd, became part owners of the firm. By 1962 Puma
shoes were exported to almost 100 countries around the world.

Another Puma hallmark was product innovation. In 1960 Puma

introduced a new technology for soccer shoes, using
a vulcanization process to join the soles to the uppers. Soon 80
percent of all soccer shoes were manufactured with this technology.
In the early 1960s Puma also developed running shoes with a
uniquely shaped sole that supported the natural movement of the
foot, based on the latest medical research of the time. In the late
1960s Puma was the first company to offer athletic shoes with a
Velcro strap.

Rudolf Dassler died in 1974, and his son Armin A. Dassler, who since
the early 1960s had been managing Puma's first foreign subsidiary
in Salzburg, Austria, took his place. Twelve years later Puma went
public and was renamed Puma AG Rudolf Dassler Sport. The
company continued to introduce innovative products. In the mid-
1970s Puma introduced the so-called S.P.A. technology--sport shoes
with a higher heel that relieved strain on the Achilles tendon. In
1982 Armin A. Dassler invented the Puma Duoflex sole, with special
slots that increased the foot's mobility. In 1989 the company
introduced the new Trinomic sport shoe system with hexagonal cells
between sole and shoe that cushioned the runner's foot. Other
innovations followed in 1990 and 1991. Inspector Shoes were shoes
for kids with a "window" in their soles that allowed parents or
trainers to observe whether the shoes were still the perfect fit
during those years of rapid foot growth. The high tech Puma Disc
System athletic and leisure shoes, which, instead of laces, used a
disk that tightened a series of wires.

During the 1970s and 1980s, world famous athletes wore Puma
products on their feet and bodies. High-jumper Dwight Stones broke
the world record in Puma shoes three times in the years 1973
through 1976. In 1977 tennis player Guillermo Vilas won the French
and U.S. Open in Puma shoes. Sprinter Renaldo Nehemia ran three
world records in 100-meter hurdles between 1979 and 1981 in Puma
spikes. In the early 1980s American football star Marcus Allen of the
Oakland Raiders, as well as baseball greats Jim Rice and Roger
Clemens, both of the Boston Red Sox, and George Brett of the
Kansas City Royals, favored Puma shoes. American sprinter Evelyn
Ashford won two gold metals in Puma shoes at the Olympic Games
1984 in Los Angeles. Tennis stars Martina Navratilova and the young
German tennis talent Boris Becker won their events at the famous
Wimbledon tennis competition in the mid-1980s in Puma shoes.

In 1991 the Swedish conglomerate Proventus AB bought all Puma

common stock traded publicly in Frankfurt and Munich. That same
year saw the founding of Puma International, a holding company for
Puma's divisions in the Far East, Australia, Spain, France, Austria,
and Germany, which were organized as independent profit centers.
Despite the company's high profile and success, its profits had
steadily declined until, in the early 1990s, they were nonexistent. It
was not until 1994 that Puma again turned a profit, and Puma
shareholders received a dividend for the first time in 1996.

In 1993 Puma's prospects looked anything but bright. The company

had been in the red for almost a decade. In December 1992 parent
company Proventus gave Puma a badly needed capital boost of DM
50 million. However, the company was competing in a stagnating
market driven increasingly rapid product cycles that resulted in
rising research and development and marketing costs, as well as
losses through more frequent markdowns of older models. Although
Puma scored high in brand name recognition, the company that in
the 1980s had generated half of all sales with shoes in the lower
price ranges was now struggling with its cheap image. Much like its
competitor adidas, Puma tried to succeed by leaving low price
markets that allowed only low profit margins; breaking into premium
price markets--the traditional territory of American giants Nike and
Reebok--became their new goal. It was perhaps too little, too late.
This strategy at first resulted in significant losses in sales and
market share. Adding to the company's problems was the fact that
the successful introduction of the innovative Puma Disc System
shoes in 1992 had been an expensive undertaking. By February
1993 it was clear that Puma needed new leadership, and parent
company Proventus replaced Puma CEO Stefan Jacobsson with Niels
Stenboej, who came from Abu Garcia, another Proventus subsidiary
that made equipment for sports fishing. However, only three month
later Stenboej left amidst changes in upper management at the
Proventus Helsingborg headquarters.

The arrival of 30-year old Jochen Zeitz hailed better times for Puma.
At the time the youngest CEO of a European publicly traded
company, Zeitz had an MBA from the European Business School and
had traveled the world from Brazil to the United States, making his
first mark as a product manager for Colgate Palmolive in New York
and Hamburg. In 1990 he joined Puma and as a vice-president of
international marketing and sales, where he was responsible for the
company's international communications strategy and contributed
significantly to the repositioning of the Puma brand. On year after
Zeitz became CEO, Puma reported its first profit--DM 25 million--
since its initial public offering in 1986. Under Zeitz's leadership the
company initiated a fundamental, market-oriented "fitness program"
that included rigorous cost cutting and reorganization measures.
Inflexible structures were replaced, as was the case when the
purchasing and product development departments were merged.
Several warehouses were replaced by a central distribution center,
and all departments became profit centers.

Puma's restructuring was but one part of its new success story. The
other was its innovative marketing plan. At its core was the
positioning of the Puma brand as an international performance
sports brand for high-quality athletic shoes, sport textiles, and
accessories. The company also based its innovative marketing
concepts on the latest trend research, earlier ignorance of which
had in part caused Puma's past downturns.

As a result, Puma launched the "Puma-Offensive '95," a marketing

program with four key areas of activity. The first was based on the
revival of the classic Puma suede shoes in the trendy clubs of New
York, Los Angeles, and San Francisco. Puma developed a collection
of shoe "originals" in various colors and matching textile collections
targeting fashion and trend conscious youth. The second element of
the marketing offensive was the Puma "World Team." Top sports
figures, such as German soccer star Lothar Matthäus and Jamaican
sprinter Merlene Ottey, represented Puma products in an advertising
campaign. The third piece in Puma's marketing mix was known as
"Replica," a line of "fashions for fans" made available through sports
retailers and soccer clubs.

One of the most successful elements of Puma's concerted marketing

effort was the Street Soccer Cup, a worldwide street soccer
competition first organized in 1994. The idea was developed in
cooperation with Leonberg-based advertising agency Godenrath,
Preiswerk & Partner (GPP). In 1993 the "street ball" wave had
become immensely popular, as kids began storming Germany's
courtyards, playgrounds, and parking lots to play pick-up games of
basketball. Puma and GPPworked together to popularize street
soccer, which was characterized by its favoring of technique
and finesse over athleticism, its focus on casual fun rather than club
regulations, and its preference for free style dress over uniforms.
New rules for the game had to be established as well. Street Soccer
was played in the street on a concrete or asphalt surface, not on a
grass field. The 20-by-14 meter field was bordered by a fence. Four
players plus one reserve player stormed two goals. Street Soccer
was played in two age groups: ages 10 to 13 and ages 14 to 16.

The event campaign was carried out in cooperation with the major
German sports magazineSport-Bild and was supported by retail
sporting goods stores. Other prominent German companies also
joined Puma as sponsors. Germany's teenagers embraced the idea.
In fact, demand far exceeded supply, and thousands of registrations
could not be accepted. About 31,000 youngsters between age 10
and 16 kicked the ball in over 6,000 teams with names like "Magic,"
"Street Attacks," and "Turkish Brothers." Over 250,000 people
watched the games at almost 200 events. The finals were played
out in front of the Reichstag building in Berlin. The success of this
innovative concept encouraged Puma to continue it on an
international scale in 1995. The Street Soccer Cup '95 was also
played in France, Hong Kong, and Tokyo. Puma introduced a new
line of Street Soccer shoes and a collection of colorful clothing for
players and spectators. All told, approximately 800,000 people
watched 70,000 kids playing soccer at more than 400 events during
this Puma event.

The year 1996 marked the end of the restructuring period Puma had
been undergoing since 1993. This was followed by a period of new
alliances and higher investment in international marketing and new
product development. For the first time since the company went
public, Puma shareholders saw a dividend in 1996 after the
company achieved a three-year sales record in comparison to
previous years. A Puma stock offering on the Frankfurt and Munich
stock exchanges in June 1996 reduced the holdings of parent
company Proventus Handels AB to 25 percent. A few months later
the American movie production and distribution firm
Monarchy/Regency bought a 12.5 percent stake from Proventus; it
obtained the other 12.5 percent in 1997.

In 1999 Monarchy/Regency upgraded its shareholdings to 32

percent. The transaction made Monarchy/Regency Puma's biggest
single shareholder. The interests of the new partners complemented
one another in that Monarchy/Regency was interested in a platform
from which it could build relationships in the sports world
to diversify into new markets, while Puma CEO Zeitz believed that
the entertainment company could help Puma with its marketing
efforts.

In the second half of the 1990s Puma intensified its international

activities. A new subsidiary--Puma Italia S.r.l.--began operations in
1997. Two years later Puma opened its new subsidiary Puma UK.
However, the most important strategic market for Puma was the
United States. In 1997 Puma generated about 80 percent of its sales
outside Germany, and this figure shrunk to ten percent if license
income was included. Puma's position was especially strong in Japan
where ten percent of all license fees were collected. On the other
hand, only a tiny fraction--4.5 percent--of Puma sales of
approximately $846 million derived from the United States,
representing less than one percent market share. A first step
toward penetrating the largest sports market was the acquisition of
Puma North America and the Puma trademark from Proventus AB in
January 1996. In 1998 Puma sealed a long-term contract with the
Women's Tennis Association (WTA), making Puma the official
supplier of shoes and textiles for the WTA women's tour. In the
same year Puma acquired a 25 percent share in Logo Athletic, one
of the leading licensed suppliers for the American professional
sports leagues. The deal started paying off in the very next year. In
1999 Puma became one of four suppliers of the American National
Football League (NFL). Beginning in the 1999/2000 season 13 NFL
football teams were wearing Puma, as well as nine National
Basketball Association teams. When two Puma teams--the St. Louis
Rams and the Tennessee Titans--competed for the Superbowl in
January 1999, about 1.3 billion TV watchers worldwide were exposed
to the Puma logo. Another novelty was the 1998 contract between
Puma and then 16-year-old American tennis talent Serena Williams.
The five-year contract included not only promotion activities for
Puma-wear but also engagements in movie and music projects of
Puma parent Monarchy/Regency. The strategy certainly seemed to
be paying off in 1999 when Puma's U.S. sales increased by 60
percent, and, moreover, the company seemed well-positioned for
the future.

Principal Subsidiaries

Puma United Kingdom Ltd.; Puma France S.A.; Puma (Schweiz) AG

(Switzerland); Austria Puma Dassler GmbH; Puma North America,
Inc. (United States); Logo Athletic Inc. (United States; 25%); Puma
Benelux B.V. (Netherlands); Puma Canada, Inc.; Puma Italia S. r. l.
(Italy); Puma Polska [Link].o (Poland); Puma Hungary Kft.; Puma
Australia Pty. Ltd.; Puma New Zealand Limited; Puma Chile S. A.;
World Cat Ltd. (Hong Kong); Puma Far East Ltd (Hong Kong).

NORTHSTAR

INTRODUCTION

The american marketing

association: [Link] defines market research
as: "The systematic gathering , recording, and analysis of data
about problems relating to the marketing of goods and
services". Consumer analysis is an important part of this
marketing research.

Without marketing research, it is quite impossible today to start any

business. Consumer analysis is the first step of any marketing
research.

In this module, our objective is to develop your skills in consumer

analysis.

Objectives:

Consumer analysis allows you to identify your prospect and

segment market. The objectives of this consumer analysis lesson
are to give you the fundamental notions about:

-Customer benefit.

-Customer profile.

-Market customer.

CUSTOMER BENEFIT

The product must bring a benefit to the customer.

Customer benefit = Sales= Profit.

No customer benefit, no profit.

-Definition: A customer benefit is the value your product or

your service gives to the customer.

The customer benefit is not the Unique Selling Advantage (USA). The
customer benefit is included in the USA, but it focuses on the point
of view of the customer and not of the investor. It implies that you
put yourself in the shoes of the customer. It means that the
customer benefit is a more precise concept than the USA.

There are two types of customer benefit: Functional and

psychological benefits.
11-Functional benefit

A functional benefit is measured in money, time, duration,

or physical measures:

Examples:

-The product is cheaper than another one: The benefit is measured

in money.

-This new machine saves the consumer 50% of his time: The benefit
can be measured in hours or minutes.

-This car has a duration twice another car: The benefit is measured
in years.

-This chair is lighter than another one ( ten kilos instead of twenty).
It occupies less space (One square meter instead of two): The
benefit is here calculated with physical measures.

As time and space can be converted in money, a functional benefit

is quite important for a business man. If your corporate sells its
products to other corporate's ( business to business) you must
emphasize the functional benefit.

12-Psychological benefit

A psychological benefit gives to the customer a pleasant feeling

such as self esteem, feeling of power, pleasant view and so on.

Examples:

-This product looks attractive and beautiful: Beauty depends on

subjective choice.

-This big and expensive car allows you to enjoy speed: As traffic
regulations limit speed, the benefit is only a feeling of power.

For starting a business, we recommend to focus on the

functional benefit that does not depend on fads. It does not
prevent you to add further some psychological benefits.
The next drawing shows a product offering both functional and
psychological benefits.

As a good or a service offers different kinds of benefits. You have to

rate them from 1 (low) to 5 (very high) according to their
importance for the customer. Of course a low price is rated 5
because it represents a greater benefit to the customer than a high
price. In the next drawing the product offers a low price (functional
benefit) and is quite attractive (psychological benefit). On the
contrary, it does not save any time: It can be a fashionable gadget.

Once again, try to forget your own point of view. May be, you think
that your low price is an important benefit but in asking around you,
you will realize that the customer emphasizes on the time saved,
thanks to your product. This analysis is important because it allows
you to target your advertisement on the benefits which really matter
for the customers.
13-High and low involvement benefits

Now, we have to examine another topic: Are these functional or

psychological benefits quite important for the customer. It means
that we have to distinguish low and high involvement
products.

Definition: If a consumer pays attention to buy a product,

then it is considered as a high involvement product. If he
does not pay too much attention, there is a low involvement
product.

Of course, all the expensive products are always high

involvement products: Flats, cars, antiques and so on. Nevertheless,
some inexpensive products can be said high involvement products:
For example, the consumers pay attention in
buying cheap drugs because health is an important stake.
What is more, this feature depends also on the customer: For
example, a fashionable dress is a psychological benefit but it
becomes also a high involvement item for a theater actor who is
mainly judged on his appearance.

So, it is always fruitful to bring some high involvement topics

to your product. For example, if you can assert that your yogurt
contains specific vitamins, you bring a high involvement feature to a
quite basic product. It enables you to differentiate your product from
the competition and to charge a high price.

Finally, the product which gives the greater benefit to the

consumer must gather both three characteristics: Functional
benefits, psychological benefits, high involvement features.
In this drawing, the big circle represents a star because the product
combines both functional, psychological and high involvement
benefits.

14-User and purchaser benefit

During this analysis, you have to distinguish the user and the
purchaser

In business to business, You sell a big computer or a software to

the heads of the corporate and you are not keeping in touch with
the final consumer. Nevertheless, you have to emphasize on the
user benefit because the head will not buy a product deprived of
benefits !

In business to consumer, you sell to a wholesaler or a retailer. Of

course you must emphasize on the final customer benefit but you
have also to take in account the wholesaler or retailer benefit. These
business intermediaries should mainly focus on some functional
benefit such as margins or time saving in the delivery of the
product.

Real life example:

Times ago, the french chickens were scarcely presented on

the German market. Nevertheless, the final consumers were
currently saying that they preferred the french chickens
because they were gusty.

One asked me to deal with this problem. After a close

examination, I realized that the german wholesalers were
reluctant to buy french chickens because the product was
packaged in box weighting twenty five kilos. As they
employed young people in their stores, they had better to
buy to the Danes who packaged their chickens by ten kilos
only.

When the french producers adopted this packaging, their

sales began to shoot up on the german market.
1. Customer benefit 2. Customer profile 3. Market
customer 4. Do it yourself 5. Coaching

2-CUSTOMER PROFILE

The customer profile is deduced from the customer benefit. It

includes also the customer buying process.

Definition: The customer profile describes the

characteristics of the customer who could really benefit of
your product or service.

Clearly, if you intend to sell fun boards, your customer profile is not
those of aged persons!

21-Customer characteristics

You can start by defining your ideal customer and list all
characteristics you will expect in this profile:

-Business to consumer: The main characteristics are quite

unlimited: Geographic area, age, sex, income, level of study,
employment and so on. So keep close to your benefit analysis and
just list the characteristics that correspond to the benefits you offer:
If you sell bathing suit, you will not care for people living in north
pole. If you sell fur clothes, do not loose your time with the
characteristics of people living in Central Africa!

-Business to business: The main characteristics are the company

size, the products or services, the level of technology, the turnover,
the staff number, the location and so on.

You must describe the required customer profile according to your

product or service

Example: What's the customer profile for fun board

-Demographic characteristics: 15 to 25 years old, male, healthy

-Economic characteristics: Student or young professional, not

less than $30,000 income coming from parents or work.
-Social characteristics: Middle and upper-middle class.

-Geographical area: North America, Australia, Northern Europe.

-Special interests: Sport like and sea like.

You just have to Think in order to define your customer profile: Of

course, he is a young man. He has good money because you cannot
afford to buy a fun board when you are short for your daily living.
So, you can expect that he comes from developed countries.
Obviously, he likes sports and sea very much.

Why do you need all these characteristics? The response is that you
need the larger information to channel effectively your
advertisement: For example, the fact to know where he is located
will conduct you to advertise mainly in english and in sportsmen
newspapers.

22-Customer buying process

According to your customer profile, you have to focus on the

customer buying process. It is not the same thing to buy a candy, a
car or a real estate. You have to emphasize on the following
aspects. I call it the DTHP process:

-Who is the decision making person? In business to business,

the purchaser may be a top ranking executive: The more
hierarchical levels involved, the more difficult the sale.

In business to consumer, the buying process could imply on person

or the entire family. The same observation applies: The more
individuals or groups involved, the more difficult the sale.

-At what time or period, does he buy? Consider frequency and

regularity of the purchases. Some business follow seasoning periods
such as the toys, the bathing suit. This period can be short: For
example, the selling of flowers on sunday, or the clothes during the
discount periods.

-How does he buy: The buying decision includes the following

process:
-The customer becomes aware of a need: The need could originate
from an impulse (candy) or from a recognized deficiency (such as a
refrigerator)

-The customer begins to explore how meeting the need: He reads

newspapers, yellow pages, and so on. It is very important to know
how does he explore to target advertisement channels.

-According to the need and his income, the customer refines the
buying criteria and defines a budget.

-He narrows the field of his choice in comparing quality/price ratio.

He could need physical touch or face to face interaction such as a
test drive.

-Finally he closes the sales. In many process, he needs to be helped

by a salesman!

How does he pay: Does he use cash, check, or credit card? Does
he ask for times payment? Does he need a loan? If you could link
some financial services to your product, such as times payments, it
should give you a high advantage especially for expensive items.

External readings:

The decision making process is simple for a soda, more

complicated for a car: Click on: [Link] .
This reading will show you that the buying process for a car
implies twenty different steps!

Click also on: [Link] then click on

"student project", then on "filing the gap in online retailing"
and finally on "buying process". This reading compares the
buying process in physical world and on line, for books,
clothes, flowers, and cars. As you could see, there is a gap in
the on line buying process because the customer does not
get any physical touch.

The best way to get information about the buying process of

your product is to talk with the retailers. You don't need a
questionnaire or a customer form. Take it easy: just talk with people
in an informal way, have chat about the weather, and ask some
short questions to collect right information's.

1. Customer benefit 2. Customer profile 3. Market

customer 4. Do it yourself 5. Coaching

3-MARKET CUSTOMER

You do not intend to sell to only one person. So knowing the

customer profile, you have now to group all the persons sharing the
same profile: It is your market customer

Definition: A market is a group of customers ( or prospects )

sharing the characteristics which cope with the benefits
offered by your product or service.

Example:

-There is a group of persons eager to travel: there is the tourist

market.

-There is a group of persons who use car. There is the car market.

Then we have to separate undifferentiated markets and market

segments.

31-Undifferentiated market

If your product brings benefits to everyone, you can treat the

market as a whole. For example, anybody whatever his age, sex or
revenue drink soda. Nevertheless, you have to take notice of the
geographical area. For a retailer, the soda market is around his
shop. For Coca cola, that is the entire world.

32-Market segments

In most cases, inside a broad market, you have to differentiate

segments. It means that the market segmentation is one of the
most basic concept in marketing.
-Definition: The market segmentation is the process of
splitting customers within a market customer, into different
groups sharing some specific characteristics.

Compare with the definition of the market customer. The important

word is the adjective "specific". Among the common characteristics
of your market customer, you only focus on some "specific
characteristics".

Examples:

-If your project is to manage an hostel, the tourist market is your

customer market but it is not very useful. The tourist market
includes cruisers, hostels, tour trip, trekking and so on. Within the
tourist market, you have to study the hostel market and inside this
broad segment the specific one which corresponds to the benefit
your hostel will offer ( Is it a five stars or a two stars hostel? is it
located on sea shore or in the Rocky Mountains?)

-We have defined above the customer profile for fun board and
consequently our customer market. Right now, we will focus on only
one geographical characteristic. It means, for example, that we only
focus on North America and inside it on USA. In doing so, we isolate
a market segment within our broad market.

With a segment you can execute your advertising activities to yield

your business targets. Without a segment, you risk wasting money.

Once again, three major variables are used :

- Geographic segmentations divide the market by country,

region and city: It is often a good starting point to begin with a
single geographical territory. Once you have completed the
segmentation for it, you can test the applicability to other and larger
areas.

- Demographic segmentations divide the population on

measurable variables such as age, sex, income, educational level
and so on,
- Psychological segmentation is often quite difficult and needs
costly surveys.

External readings:

The next reading shows a list of detailed criteria currently

used: Click [Link] . Click on "business
planning resources" and then on "segmentation". You will
find here many ideas about possible criteria. Some of them
could apply to your product. In using them, you will be able
to narrow your segment.

Anyway, each segment must be:

-Homogeneous: It's the first quality required for a segment. It

means that a segment must be clearly different to others segments
in the same broad market. For example, a segment having people
income ranking from $20,000 to $200,000 is not homogeneous and
worthless for a marketing strategy.

-Consistent: If your segment counts only three prospects, and

except you sell nuclear plant, it's not enough to develop sales and
profits. A segment must count a large number of prospects.

The factors which can influence the size of the segment are the
increase in population, the situation of employment and the
changes in income, the supply of resources, the evolution of laws,
the consumer tastes and preferences and notably the fads.

-Profitable: A segment must generate profit. It means that the

prospects in the segment have a sufficient income with regard of
the product price. If you sell luxurious car, it's not very smart to
isolate a segment which only contains deprived people!

-Executable: It means that you can reach the segment through

advertising, sales force, distribution. It is worthless to isolate a
segment if you are unable to join the people who are inside it. For
example, there is certainly a consistent segment for fun board in
China but If you do not speak chinese, you will never make a dollar
with it.
From a practical point of view, your first task is to evaluate the
size of the segment. Easy to say but it's a real hurdle, because
you have to calculate the entire sales volumes of all the suppliers in
the segment. It means that you should add all the turnovers of the
competitors existing in this segment. How could you manage
that in the specific case of our fun boards?

Down-earth advice:

With chambers of commerce, producer associations, and so

on, you can know how many cars, how many tons of cotton,
rice, crude oil and so on, have been produced and imported
in the US, and consequently consumed. By the same way,
you can know the global amount in $ of the sport sales in
the USA by year 2002

Let's suppose that your own segment is in Arizona. First you

do the following calculations:

Total sales USA*Arizona population/ US population=Arizona

sales

You know the amount of sport stuff sold in Arizona by 2002.

Now, you will meet in your area three big retailers selling
sport articles and you should just ask them one question:
When you are selling $10,000, what is the percentage of fun
boards? Suppose they answer one fifth ($2000). Then you
have just the calculate:

Sport articles sales in Arizona/5= Estimated fun board sales

in Arizona.

You have the total sales of fun board in Arizona. Now,

evaluate the average price of a fun board ( just visit a lot of
shops and quote the prices) and divide the sales volume by
the average price:

Fun board sales in Arizona/ average price= number of fun

board sold.
You were in the dark at the beginning and now you know the
estimated numbers of fun board sold in Arizona by 2002!
These calculations look rough but do not worry. By
experience, I know that the consulting group which are
charging heavy fees just proceed like that!

Be very serious about stats: Too often, people do not like too
much the figures and only trust their intuition. In this matter,
intuition appears often to be wrong.

Real life example:

In the sixties, an European consulting group decided to

study the world milk market. Most of the top executives
were convinced that the market was made up with crude
milk in bottle and concentrated milk in can. At this time, the
European were not familiar with powder milk.

In charge of this study, I scrutinized the import and export

stats of about 120 countries. It was not a cool job! In
reward, I discovered that the world market was made up of
powder milk by 80%!

The executives who had trust their intuition were quite

astonished by these results!

When you get a homogeneous, consistent,profitable and executable

segment, it means that you have a marketable product.

External readings:

For example, the next site shows how these concepts are
applied to the agricultural
sector:[Link]/agriculture/financial/agribus/agribusi
[Link] . Go to Manitoba! Click on "new product
development" and read "sections 1, 2 and 3".

33-Cluster analysis

To target your customers, you can split the segment into little
groups according to a multi-criteria approach:
Example: With our fun board market, we have defined a market
segment in Arizona. Now, we shall split this segment
in clusters, according to new criteria's: People who focus on price,
people who had subscribed life insurance, people who only buy from
well known brand.

External reading:

To see the methods used, look at: [Link] and click

on "analytical services" and then on "market segmentation".

As data do not give answers about such characteristics, you can

create a sample. It's a little group of persons that represent all the
characteristics of a larger population. It may be created with friends,
relations, chambers of commerce and so on. You must be sure that
it is really representative of your whole segment.

When your sample is established, send to each person a short

[Link] questions that produce answers and only focus
on the important topics: four or five questions; no more! Test your
questionnaire before to field it.

Thanks to the internet, some consulting groups suggest to split the

cluster intoindividuals. Nevertheless, this ultimate approach raises
some problems.

In short, the advanced marketing segmentation looks like the

precision guided munitions! I am quite cautious about it, because it
needs complex computer software, pool opinions, sample analysis
and high fees charged by consulting groups. It 's good for big
corporate's that can afford it.

Anyway, remember that the market segmentation is a

compulsory step to define a marketable product. Keep also
in mind that only marketable products make money. This
point must be underlined

1. Customer benefit 2. Customer profile 3. Market

customer 4. Do it yourself 5. Coaching
Lesson summary:

A product or a service must bring a benefit to the customer.

The customer benefit may be functional and psychological. It
may represent a low or a high involvement.

The best benefit gathers both functional, psychological and

high involvement features. Any benefit analysis must be
conduct both for the user and the purchaser.

The customer profile is deduced of the customer benefit. A

market gathers the customers who share the same profile
and who could benefit from the product.

A market segment focuses on some specific characteristics

of the customer profile. It must be homogeneous,
consistent, profitable and executable.

1. Customer benefit 2. Customer profile 3. Market

customer 4. Do it yourself 5. Coaching

DO IT YOURSELF:

1-You have now to establish for your own business project:

-Your Customer benefit

-Your Customer profile

-Your Market customer

-Your Segment market

Please, follow the logical process you have just learnt: It

means that if your customer profile is a young man, your
segment can't include a grand mother! Starting with a broad
approach, you will more and more focus on your target!
BATA
Bata Shoes (Czech: Baťa or Baťovy závody) is a large, family
owned shoe company based in Bermuda but currently
headquartered inLausanne, Switzerland , and operates 4 business
units worldwide – Bata Europe, Bata Emerging Markets, Bata
Branded Business and Bata North America. It has a retail presence
in over 50 countries and production facilities in 26 countries. In its
history the company has sold more than 14 billion pairs of shoes.
•

[edit]Foundation, Tomáš Baťa

The company was founded in 1894 in Zlín (then Austro-Hungarian
Empire, today the Czech Republic) by Tomáš Baťa (Czech
pronunciation: [ˈtomaːʃ ˈbata]) 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.
Tomáš Baťa was recognised for his social conscience, establishing
housing, cinemas and advancement programmes for his employees.
The phrase "work collectively, live individually" is one of his sayings.
Baťa recognised 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 Tomáš died in a plane crash at the Zlín airport (attempting
to take-off under bad weather conditions) and his half-brother Jan
Antonín Baťa became head of the company.
At the time of Tomáš' death, the Baťa company employed 16,560
people, maintained 1,645 shops and 25 enterprises. Most of what
Tomáš had built was centralized in Bohemia-Moravia (15,770
employees, 1,500 shops, 25 enterprises) and Slovakia ( 250
employees and 2 enterprises). The total international contribution to
the Baťa organization at the time of Tomas' death consisted of 20
international enterprises, 132 shops, and 790 employees.
[edit]Jan Antonín Baťa
Under Jan Antonín Baťa the company grew quickly, continued its
expansion throughout Europe, North America, Asia, and North
Africa. Zlín accommodated the largest part of the company, with
manufacturing and headquarters.
Apart from shoes, Baťa also diversified into other areas (tyres, toys,
plastic fibres, etc.).
[edit]Thirties and forties
Jan Baťa expanded the Bohemian and Moravian part of the business,
more than doubling its size to 38,000 employees, 2,200 shops, and
70 enterprises. In Slovakia, he grew the business from 250
employees to 12,340 and 8 enterprises.
In the face of a worldwide depression, Jan Baťa (through his vision
and skill) expanded the company more than sixfold its original size
throughout Czechoslovakia and the world. From the time of his
brother's death in 1932 to 1942, he grew the Baťa organization to
105,770 employees.
During the 1930s imports from Czechoslovakia ultimately became
too expensive due to the economic crisis in Europe at the time. Jan
Antonín also established subsidiaries in several foreign countries (for
example in Brazil, Britain and Canada).
[edit]Bata-villes
Company policy was to set up villages around the factories for the
workers and to supply schools and welfare.
These villages include Batadorp in the Netherlands, Baťovany
(present-day Partizánske) and Svit in Slovakia, Baťov (nowadays
Bahňák, part of Otrokovice) in the Czech Republic, Borovo-Bata
(nowadays Borovo Naselje, part of Vukovar in Croatia then in
Kingdom of Yugoslavia), Bataville in Lorraine, France, Batawa in
Canada, East Tilbury[1] in Essex, England, Batapur in Pakistan
and Batanagar and Bataganj in India.

Bata Shoe Store - Grand Hotel Kolkata

The company, which established itself in India in 1931, started
manufacturing shoes in Batanagar in 1936.
In 1922, the first Bata shop abroad opened in the Netherlands; in
1933, construction began on the Bata shoe factory in Best, in the
Dutch province of Brabant, at the intersection of the railway tracks
leading to Eindhoven and the Wilhelmina Canal located nearby.
There was an abundance of inexpensive and hard-working labourers
in the Brabant countryside.
The British "Bata-ville" in East Tilbury inspired the
documentary Bata-ville: We Are Not Afraid of the Future.
[edit]During World War II
After Germany occupied the rest of pre-war Czechoslovakia (15
March 1939) Jan Antonín Baťa, who left the country with his family
after a brief time in jail after the Nazi occupation, tried to save as
much as possible, submitting to the plans of Germany as well as
supporting financially theCzechoslovak Government-in-Exile led
by Edvard Beneš.
An episode: A Baťa-owned Lockheed plane was flown out of
Czechoslovakia 2 days before the Nazi occupation. The plane made
it to Britain where it was dismantled and shipped to Canada.[2]
Foreign factories were separated from mother company and
ownership of plants in Czech lands was transferred to one member
of the family.
Jan Antonín Baťa stayed in the Americas from 1939-1940, but as
America entered the war, he felt it would be safer for his co-workers
and their families back in occupied Czechoslovakia if he left the
United States.
At the moment he left the protection of the United States, the British
placed him on the "black list". It is believed that the communist
influence on the Beneš' exile government was behind this. The
official reason for this was Mr. Baťa's inability to pay a demand by
the British government amounting to 250,000 pounds sterling (a
huge sum of money at the time). The United Kingdom insisted on
the huge bail because Mr. Baťa was the owner of the largest
industrial concern in occupied Czechoslovakia, located in enemy
territory and employing more than 40,000 Czechs and Slovaks.
During the war, Jan Baťa helped hundreds of Jewish families to
escape from Czechoslovakia, sending them all over the world
throughout the Baťa organization and beyond the Nazis' reach.
During the war, among other patriotic deeds, Jan Baťa devised a
plan to save more than 100,000 of his countrymen from Nazi
concentration camps by setting up plans for a Czech/Slovak
infrastructure building plan for a highway and aqueduct system. This
frustrated the Nazi decrees that took unemployed Czechs and
Slovaks to concentration camps in Germany and elsewhere. The
road and aqueduct system envisioned by Mr. Baťa was based on his
book entitled Building a nation of 40,000,000 (circa 1938).
During the war Jan Baťa was also the largest contributor to the
Czech cause, prior to Munich and after. Even though he disagreed
with the pro-soviet politics of Edvard Beneš and Jan Masaryk, he
gave monetary support to them during the war. More than 250
pilots were trained by Jan Baťa's organization in preparation for the
allied invasion, many of whom served as pilots or airmen in the RAF.
[3]

[edit]After the war

[edit]Communist Czechoslovakia
After the war Jan Antonín Baťa attempted (unsuccessfully) to purge
his name of the accusations against him.
Members of the family started to sue one another over ownership of
the company; mutual hatred among branches of the family lasted
for decades.
In 1945 the company was nationalised as a part of large scale
nationalisation program in Czechoslovakia.
In spite of incredible odds and a political climate that had put the
machinery in motion to nationalize all large businesses, Jan Baťa
fought against the alleged 64 crimes of which the communists had
accused him. And in fact, the jury at the time, composed mostly of
socialists and communists found Jan A. Baťa innocent of all 64
charges. The verdict enraged the communist judge, who
immediately added two new charges, declared Jan Baťa guilty, then
used the guilty finding as a reason to confiscate all Baťa properties
in Czechoslovakia and sentenced Mr. Baťa to 15 years of hard labor
in absentia.
After the communist party took all power (1948) it tried to suppress
all memory of Tomáš and Jan A. Baťa. Baťas were portrayed as
ruthless capitalists, exploiting workers in pursuit of higher profit
(see Svatopluk Turek). The company was renamed as Svit and the
town of Zlín as Gottwaldov (after the leader of the communist
party). The Svit factory concentrated on the domestic market.
During the following decades its ability to compete and its
technological infrastructure declined due to under-investment and
weak management.
[edit]Canada

Bata International Centre 1965-2004

Anticipating the Second World war, Thomas J. Bata , together with
over 100 families from Czechoslovakia, moved to Canada in 1939 to
develop the Bata Shoe Company of Canada, including a shoe factory
and engineering plant, centered in a town that still bears his name,
Batawa, Ontario. Thomas J. Bata successfully established and ran
the new Canadian operations and during the war years he sought to
maintain the necessary coordination with as many of the overseas
Bata operations as was possible. During this period the Canadian
engineering plant manufactured strategic components for the Allies
war effort and Thomas J. Bata worked together with the
Czechoslovak government in exile of President Benes and with other
democratic powers. In 1964 the headquarters of the Bata Shoe
Organization was moved to Toronto, Canada and in 1965 it moved
into an ultra modern building, the Bata International Centre.
The Bata Shoes' former headquarters in North York was designed in
the 1960s by architect John Parkin. The building was later sold and
was to be replaced by a cultural centre, museum, and park. [4] Other
Bata family contributions to Canadian life include: Mrs. Sonja I. Bata
founding the Bata Shoe Museum in Toronto in 1998, Mr. and Mrs.
Bata being supporters of Trent University, where the Thomas J. Bata
Library bears Bata's name,and supporters of York University in
Toronto.
After the Second World War the Bata Shoe Organization was led
by Thomas J. Bata (Tomáš Baťa Junior), son of Tomáš Baťa and the
company grew significantly under Thomas J. Bata's driving
leadership. In 2002 the headquarters was moved to Lausanne
Switzerland and the Organization has been led by Thomas G. Bata,
grandson of Tomáš Baťa.
[edit]Present
After the global economic changes in 1990s the company closed a
number of its manufacturing factories in developed countries and
has focussed its activities on expanding its retail business there.
In developing countries it still has a large number of manufacturing
units and still produces a significant number of shoes each year.: