Can Bata make jam?

The concept of core competency is relevant in some situations and some industries. If bata decides to make jams i.e. go into food processing, they will first have to spin out a separate brand for food products. They just cannot market that as bata jam, as people relate the name bata to shoes and leather only.

In a competitive market it is necessary to create separate brands for each category of products, even if owned by same company.

Just look at tata, they manufacture almost everything, but before, they developed brands. Tata steel is different from tata salt!
Each brand has its identity.

It should be noted that bata is itself brand...they cannot act like a conglomerate.

Thanks for the referral Ms.Chitra Bannerjee.

This is a open market and anyone can do any type of business with proper professionals having the right expertise to penetrate the market. Our consumer markets have wider scope to absorb any type of business with calculated move to have better business return.
Thanks for the referral Mr.Virag Shah.
 

The writer and the manager belong to old school, traditions, which everybody is fed up of. If Bata wants to make jam, and if its done all the necessary research, it would be a marketing strategy to go for a tottaly different product. When will Indians stop being traditional???

“Of course! If a cigarette company can make food to cosmetics to agarbatti, why not a shoemaker?” ......Its scary how Indian business schools are adulterating the marketing courses...... We would also like to highlight that even Company like Essar is doing the same and started THE MOBILE STORE in Mumbai where they fool their suppliers by ordering and not making good the payments there after you can check this out , it is the easiest way in the industry to fool the suppliers /customers by using big names if Essar is doing this so can all the others Malika you shall agree  

An important implication  is that diversified firms may trade
at discounts even if diversification is a value-maximizing strategy. A poor
match between organizational capabilities and businesses both generates a
discount and causes the firm to diversify.

Too much diversification is like putting your hand in all the cookie jar together, where one may not have specialization in any one which never serves the purpose of the economy to create satisfaction for customers. The problem with India is we had very few capitalists and credit was not easy in the secluded days and the big business houses used to be the only major investors who were creating the employment requirement for graduates. So this practice continoues even though it is not a healthy practice for sustaining business units which may be many. 3M is an exception then their management methods also differ, it is managed as different businesses.
Being secluded for many years we even flout individual labor specialization, or differentiation of labor where non-specialists tend to adorn positions where they have no qualifications whatsoever to do justice to the job they get. All these flaws need be changed if one need to channalise the economic forces properly in the economy where now it is still in distorted state. 
First one need to have an Economic model for the nation like the 'circular flow model' then each processes will work out as the forces get aligned, then individual problems that arise need be game analysed using extensive form graphs fitting into the moral philosophical standards.

any company is free to diversify. i am sure a company would have carried out all the required analysis & then arrive at a decision.

Very interesting article and thanks for the referal Malika. 
The HR manager in contention must be from the bygone era ! Who said companies cannot diversify from their core strengths ? In fact their core business will serve as the root to branch out. If the core business is strong, then it will take care of other business till they stabilise. It all depends upon the promoters ability to invest time and resource. One shouldnt get into it for the heck of it. Classic example i can give is that of the NEPC group in india - they diversified from their core area of renewable energy and went into airlines, television and FMCG. They bombed in all because they never had the inclination to devout adequate time and resource to each vertical nor loosened the family control. They held on to each division and had one of the brothers heading it who had no clue about the industry in itself.
The point here is - diversify from non-core areas but invest time, resource and talent into it. Surely it will succeed !
Hasnt Wipro diversified from a vegetable oil manufacturer into IT services though their lighting division failed ? There are numerous such examples that we can quote. Todays business world demands diversification ! One has to only ensure to make adequate arrangements to develop the different branches. Its like the banyan tree which spreads far and wide and takes strong roots.

ARE YOU WRITE Absulty

It sounds strange that Bata want to diversify it's business into FM CG field. 

Like Paul says, of course Bata can make jam. The question is should it?

If, for any reason, Bata was compelled to make jam, there actually might be a way out.

There might be several compelling reasons. The Diversificationists have a strong lobby on the board. Thomas Bata's great grand children have inherited the company and one of them likes growing organic foods. Mamata Banerjee makes them market the produce of farmers around their factories as part of her Maa, Mati Manush movement. Or refuses transportation rights for all Bata products on railways.

There could be several weird reasons. But life is like that. And good creative minds will find a way out.

After all Tata has successfully diversified into categories like fashion (read Titan, Tanishq, Fastrack, Westside) and hospitality (read Taj, Gateway...). But they had the good sense to change the brand name and suggest those were from the House of Tata.

Whenever the category's emotional benefit is based on TRUST, very sensibly, they use the brand name Tata. Thus, Tata Salt as well as Tata Trucks. Even Tata Nano. (Though they'll need a good PR agency to get around the fire that's spreading, unfought.:-)

So yes, Bata could have a sub brand for Jams. Which does not smell of shoes. But smells of bonding families together.

Festiva Jams could do quite well. Bonds families. And there's a new flavour for each festival.

"Pujo ey chai Festiva Jam". (Fortunately, the copyright belongs to Bata!)

Eid ey chai Festiva Jam

Christamas ey chai Festiva Jam.

I'd just put the fact that is from the House of Bata in 6 point type. Somewhere along with the ingredients on the label. Which no one but the Excise Department reads.

well , no doubt diversification is one of the strategy adopted by almost maximum of the organizations but that donot means Bata should indulge into jam making.. bata is well imbeded into the minds of people as a brand which makes shoes and something thats of prime importance is how do a consumer accepts the product. The credibility Bata holds in terms of shoe making may or may not be same as in case of jam.

I agree that a strong core valve driven business remains successful for a diversified products. Values are to be imbibed and fostered gradually, so that , at a point, when it intends to diversify, it facilitates growth.

This is a case the marketer know about Xerox made a computer and IBM made attempt about copying machine. WIPRO has brands in toiletries but how successful are they? Do people recognize WIPRO as IT major or cosmetic minor? There are more examples of these trials and failures. In the decade of India liberalization large organizations wanted to focus on their core competencies. A brand can diversify but its core identity must have that space to act. If a cigarette major can diversify into hotels, papers, cosmetics, stationeries or a steel major can diversify into car, software, retail, or even real estate it seems to be anybody's game. But is it really so? Then where's difference between core corporate identity and brand identity? If a brand is solely perceived as a shoe maker a diversified corporate identity making would go a long way.That w'd be a different story altogether.

how we can ask quest hteir

So many different perspectives. And each one has a valid point. I liked Malika's point of view when she said that a brand has its reputation and it should not hop for no reason. 
On the other hand Madhuri's statement is also seems real, specially along with the example she has given. 
Virag, Manish, Karthik, Ravi and other members have also added quite effectual point. It is really insightful to see all different perspectives. Thanks for adding your valuable inputs. 

Vertical growth is always better than horizontal :-)

"BATA" Can certainly make Jam ! The question is, " Who is going to buy it ?" The Brand Bata is associated with Shoes / Footwear. So the Human mind wonders.... what is footwear company gotta do with Jam. So  We hesitate . .  and do not buy. Who will make, some thing which do not sell ? 

Each and evry comapny can do every thing whatever they want. And many examples are available in market as well as we know very well.Agree with Mr.Manish kumar that there is diversification scenario. To stay in market, diversification is becoming necessary in market for each company and competition is also going high. Not only company but even small company, local company as well as retailers are also keep all type of product.

Every company is on diversification .Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets.r8 now banks are going in to EDUCATION Sectors... 

i agree with malika bata is a well known brand but known for its shoes and not for food articles it becomes very difficult seta thought in the consumers mind that a shoe making company can make a food item yes it can go with other related to shoe products & accesories.........

i agree with malika bata is a well known brand but known for its shoes and not for food articles it becomes very difficult seta thought in the consumers mind that a shoe making company can make a food item yes it can go with other related to shoe products & accesories.........yes too add they can make it all together with a different brand name

Anything can be made if you have funds to support the idea. Bata is a well known brand in India and yes they have all possible means to fund a new idea. What matters is how innovative that idea is?
If all the liquors king, Mafias can get into Education and open institutes which are running off well... why can't Bata make Jams :P

Well Said and thanks to Mallika. IT is not what Bata is going to make is important and it is all about how it is to going to do. All i know BATA is always Jam Packed. The important point to b noted is that weather he is going to cut the cloth according to the coat or coat according to the cloth. Good Luck for the new venture

As i worked for one month for Bata as a trainee store manager,Bata should try its hand to other business also bcoz it is fading its shine slowly.

Going by the market stand what they have with respect to its positioning in the footwear segment,  It would be a very good experiment for them to see the food and beverages industry so also in the confectionary business.  Bata has global presence it also has its audience which is very very loyal.  It can definetly make a strong presence in such a dynamic market that too with major exploration of modern trade and MALL business,  It would surely make the shelf life of the product for longer visibility.  Good opinion.  Infact,  Bata should go ahead and make it happen.  Kissan has ruled the jam industry for long.  give others also some chance to prove.

Every business wants to diversify!  So long as they are not crossing the limits, conforming to standards and quality parameters, and business ethics and social inclusive growth consideration, in a liberalised economic regime, there is no harm trying any vertical!  Brands are not built overnight!

I guess people should be more aware in terms of their business sense. A well established footware brand like Bata would definitely dilute its market value by going for a eatables like Jam. This would be in similar lines as Nirma a market leader in detergent, a washing soap.. went on to make bathing soap too in the same category which bombed..Understanding the consumer perception who treats nirma as a soap to wash clothes and cant use it to clean his body...Its all in the minds...

Bata "Can Make Jam Too" if it wants to diversify into Food retail,who knows Bata Showroom
has a ready market for jam too.Ultimate choice rest with the discerning customer to go
for a change from Kissan Jam to Sil Jam or Bata Jam.

A brand has its own strengths and weaknesses. Case in Point, Nirma Toothpaste was in the market for a short period of time. Imagine the first thing that comes to your mind when u think 'Nirma' and I bet its detergent. So, it didnt make any sense. Similarly, Bata may get into the business of making Jam. However, that has to be a separate legal entity  managed by a different set of people to grow the business. Bata does not have the internal strengths to grow into the business of Jams.

The whole article made an excellent read.. The right point should be made concrete clear to everyone.. A brand has its reputation and in order to maintain it it should not hop from one product to another, instead should make the roots strongest, trunk strong and fruits SWEET.. 
Thanks you:)