Case Study: Comparative Marketing Strategies of Relaxo, Bata, Liberty, and Their Brands

 Case Study: Comparative Marketing Strategies of Relaxo, Bata, Liberty, and Their Brands

Abstract

This study investigates the marketing, financial, pricing, and export strategies of three leading Indian footwear brands: Relaxo, Bata, and Liberty. It highlights how Relaxo’s focus on affordability and robust international presence contrasts with Bata’s premium positioning and Liberty’s emphasis on design-centric domestic growth. The analysis includes a comparative study of their market capitalization, return on equity (ROE), and promoter holdings, alongside a review of their export trends over the last five years.

The findings underscore Relaxo’s consistent global growth and Bata’s challenges in recovering from market disruptions, while Liberty’s strategy revolves around domestic dominance with moderate export ambitions. The study provides actionable insights into how these brands can optimize their strategies to sustain growth and expand market share. The comparative framework also serves as a guide for businesses in competitive industries aiming to adapt to changing consumer preferences and market dynamics.

This research contributes to the broader understanding of strategic brand management in the Indian footwear sector, offering recommendations for improving operational efficiency, financial performance, and global outreach.

Introduction

The Indian footwear market, valued at over $13 billion in 2024, is fiercely competitive. Among the notable players, Relaxo Footwears, Bata India, and Liberty Shoes stand out as leaders in innovation, affordability, and market penetrationThe footwear industry in India is a dynamic sector with significant contributions from well-established brands like Relaxo, Bata, and Liberty. These brands have successfully created a diverse portfolio of products catering to various demographics and consumer needs. Over the years, they have adapted their marketing strategies, pricing models, and export plans to align with evolving market demands and global trends.

Relaxo Footwear, known for its affordable yet durable offerings, has emerged as a leader in the semi-formal and casual footwear categories. Bata India, with a legacy spanning decade, represents the blend of heritage and innovation, targeting both premium and mass-market segments. Liberty Shoes has carved its niche by focusing on stylish designs and a strong domestic presence while gradually building its export capabilities.

This case study delves into the comparative marketing, pricing, and financial strategies of these three giants. It also examines their export trends over the past five years, offering insights into how these brands maintain their competitive edge in an increasingly globalized marketplace.

  

Comparative Chart: Brands of Relaxo

Relaxo Brands	Target Audience	Special Features	Price Range	Core Offering
Flite	Semi-formal segment	Lightweight, durable, trendy	₹250 - ₹700	Comfortable slippers for everyday wear
Sparx	Youth, sports enthusiasts	Sporty designs, high durability	₹500 - ₹1,500	Athletic shoes, sandals, and casual wear
Bahamas	Youth, casual market	Vibrant colors, waterproof	₹250 - ₹600	Flip-flops for leisure and casual wear
Relaxo	Mass-market, all ages	Rubber slippers, versatility	₹200 - ₹500	Everyday slippers

 

Comparative Chart: Brands of Bata

Bata Brands	Target Audience	Special Features	Price Range	Core Offering
Power	Athletes, sports enthusiasts	High-performance footwear	₹1,000 - ₹3,000	Sports shoes and performance wear
Bubblegummers	Kids and toddlers	Soft, colorful, safe designs	₹500 - ₹1,500	Kids' casual and school shoes
Hush Puppies	Premium customers	Leather, comfort-focused	₹3,000+	Formal and semi-formal shoes
Bata Casuals	Urban professionals, students	Durable and stylish casuals	₹800 - ₹2,000	Shoes for everyday casual wear

Comparative Chart: Brands of Liberty

Liberty Brands	Target Audience	Special Features	Price Range	Core Offering
Gliders	Budget-conscious, casual wear	Lightweight, affordable	₹700 - ₹1,500	Comfortable casual footwear
Force 10	Sports and youth market	Sporty and durable designs	₹1,200 - ₹3,000	Athletic and sports shoes
Healers	Urban professionals, semi-formal	Comfort with stylish appeal	₹1,000 - ₹2,500	Semi-formal and office wear

 

 

Marketing Strategies

1. Pricing Strategy

• Relaxo: Known for its value-for-money approach, Relaxo positions its products as affordable yet durable. Brands like Flite cater to semi-formal and casual footwear needs, offering competitive prices starting as low as ₹250 for slippers and flip-flops.
• Bata: While Bata also caters to the masses, it blends affordability with a premium segment strategy. Bata’s offerings range from ₹500 to ₹3000, targeting middle-income to affluent buyers.
• Liberty: Liberty focuses on mid-tier and premium pricing, aiming to attract urban consumers who seek style without compromising quality. Prices range between ₹700 and ₹4000.

Comparative Insight:

Relaxo's pricing is highly competitive, especially for mass-market appeal, while Bata and Liberty target higher margins with a premium feel. Relaxo’s affordability allows it to capture rural and semi-urban markets better.

 

2. Financial Strategy

• Relaxo: With annual revenues exceeding ₹3,000 crores, Relaxo emphasizes cost-efficient manufacturing, leveraging economies of scale. It reinvests significantly in automation and marketing while maintaining low debt.
• Bata: As an international brand, Bata leverages its global heritage to attract premium pricing. However, its operational costs are higher due to brick-and-mortar retail presence.
• Liberty: Liberty's financial strategy focuses on diversification but struggles with operational inefficiencies. It has not achieved the scale or profitability of Relaxo.

Comparative Insight:

Relaxo’s lean financial model outperforms its competitors, with consistent profitability and limited reliance on external funding.

Financial Comparison:

Brand	Market Cap	PAT Growth (Recent Year)	ROE (10-Year CAGR)	Promoter Holding
Relaxo	₹32,292 Cr	27.8%	22%	70.92%
Bata India	₹15,678 Cr	Negative (Challenging recovery)	16%	52.96%
Liberty Shoes	₹300 Cr (Approx.)	Moderate Growth	Limited data	59%

Face Value on NSE:

• Relaxo: ₹1 per share
• Bata India: ₹5 per share
• Liberty Shoes: ₹10 per share​

 

3. Distribution Strategy

• Relaxo: With a network of over 50,000 retailers and robust e-commerce penetration, Relaxo ensures its products reach urban and rural areas alike. Its distribution spans 34 countries, making it a leader in export markets.
• Bata: Bata operates over 1,500 retail outlets in India but has been slower in adopting a robust online presence, which impacts its distribution efficiency.
• Liberty: Liberty focuses on retail chains and e-commerce but lacks the scale and penetration of Relaxo.

Comparative Insight:

Relaxo’s hybrid model of offline and online channels ensures maximum reach, surpassing Bata and Liberty in distribution effectiveness.

 

4. Export Strategy

• Relaxo: Exports footwear to 34 countries, focusing on affordability and durability. Its International Business Division in Dubai plays a strategic role in penetrating regions like Southeast Asia, the Middle East, and Africa. Relaxo has been awarded for export excellence for nine consecutive years.
• Bata: Leveraging its global brand equity, Bata exports premium footwear. However, its focus remains more on domestic premium markets.
• Liberty: Liberty has limited export presence compared to Relaxo and Bata, primarily due to a smaller production scale.

 

Export Trends and Financial Overview of Relaxo, Bata, and Liberty (Last 5 Years)

Export and Revenue Trends:

1. Relaxo Footwears:
• Strong export performance with consistent growth.
• Achieved a 10-year revenue CAGR of 13%, outperforming Bata and Liberty.
• In FY2022, its revenue grew 36.7% year-on-year (₹497.13 crores in Q1FY22 compared to ₹363.58 crores in Q1FY21)​
• ​Bata India:Experienced fluctuating export trends and slower recovery from disruptions like COVID-19.3-year revenue CAGR indicates challenges with a negative growth rate. The 10-year CAGR was at 3%​ .
2. Liberty Shoes:
• Focused more on domestic markets and branding. Export data showed steady but moderate growth compared to Relaxo.

Comparative Insight:

Relaxo’s export strategy focuses on affordability for developing markets, while Bata leans toward premium markets. Liberty lags in this domain.

5. Market Leader Strategy

• Relaxo: Dominates the mass-market segment with affordable and durable products. Brands like Sparx appeal to youth, while Bahamas targets a fun, modern demographic.
• Bata: Combines heritage branding with premium offerings to attract urban consumers.
• Liberty: Relies on niche branding and focuses on fashion-forward designs but lacks Relaxo’s scalability or Bata’s global legacy.

Comparative Insight:

Relaxo’s ability to innovate and adapt to market needs, combined with aggressive marketing, has enabled it to outperform Bata and Liberty in terms of mass-market dominance.

Comparative Chart: Brands of Relaxo, Bata, and Liberty

Criteria	Relaxo Brands	Bata Brands	Liberty Brands
Popular Brands	Flite, Sparx, Bahamas, Relaxo	Power, Bubblegummers, Hush Puppies, Bata	Gliders, Healers, Force 10
Target Audience	Mass-market (all segments)	Premium & middle-income groups	Urban youth & middle-class
Core Focus	Affordable, durable footwear	Premium design & global appeal	Fashionable, niche designs
Pricing	₹250 - ₹1,500	₹500 - ₹3,000+	₹700 - ₹4,000+
Special Features	Cushioned soles, vibrant styles	Premium leather, kids' focus (Bubblegummers)	Stylish comfort for all-day wear
Sports & Youth Appeal	Sparx (athletic & trendy designs)	Power (sports footwear for athletes)	Force 10 (sports footwear)
Casual Segment	Bahamas (fun, colorful flip-flops)	Bata casuals, Hush Puppies (premium casuals)	Gliders (affordable casuals)
Semi-Formal Segment	Flite (semi-formal slippers)	Bata formal shoes, Hush Puppies	Healers (semi-formals with comfort focus)
Market Reach	Rural & urban markets	Focus on urban areas, global markets	Mostly urban areas
Export Markets	34 countries (Middle East, Africa, Southeast Asia)	Over 50 countries (strong global legacy)	Limited export presence

 

Teaching Notes

Discussion Questions

1. Analyze the pricing strategies of Relaxo, Bata, and Liberty. How do these strategies align with their target audiences?
2. Evaluate the role of exports in Relaxo's growth. How can Bata and Liberty improve their international presence?
3. Discuss the impact of distribution networks on the market performance of these brands. What lessons can Liberty learn from Relaxo?
4. Compare the financial strategies of Relaxo and Bata. Which model is more sustainable in the long run?
5. What innovative marketing strategies can Liberty adopt to compete with Relaxo and Bata?

 

Recommendations

1. For Relaxo:
• Continue leveraging digital marketing to enhance brand visibility.
• Expand premium offerings to tap into urban affluent markets.
2. For Bata:
• Strengthen its e-commerce presence to compete with Relaxo in digital sales.
• Reassess operational costs to improve margins in the mass-market segment.
3. For Liberty:
• Invest in automation and scale production to reduce costs.
• Focus on mid-tier international markets to grow exports.

 

Sources

• Relaxo Footwear Limited Annual Reports
• Articles on Relaxo's market expansion in Morocco and the Philippines
• Bata India Corporate Presentations
• Liberty Shoes Financial and Marketing Strategies

Economic Times and PRNewswire for company