BATA STP Assignment

Presented by:

NAME ID Participation
Osama Abd El ghany 22221037027   Marketing strategy
Mostafa Gad Sakr Marketing strategy
Tamer mohamed Akl Marketing objectives
Abdelrhman Ahmed Morsy 22211035384 Targeting &position

Presented to: 1

DR. Moshira Gamil

Index:

1- Marketing objectives -------------------------------- 4

2- Marketing strategy -----------------------------------8

3- Targeting-------------------------------------------------11

4- Position---------------------------------------------------11

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Marketing objectives:
The Egyptian Company for the manufacture of shoes (BATA).
The company was established in 1927, and it is one of the leading Egyptian companies in the
manufacture of shoes in general and economic shoes that target the last segments of the poor and
the first segments of the middle class by providing sports shoes in the first place targeting
different age groups based on durability and reliability and the largest possible distribution ratio.

The emergence of new brands and factories that depend on raw materials slightly higher than
those used in Bata, as well as close in price with the increase in media focus through
advertisements and addressing ages, especially children (Couochi sho - Amigo)

The company lacked specialized research and development (R&D) departments, which
negatively affected the company's market acquisition rate.

The company relied on its branches spread throughout the Republic and tended to add other new
activities such as the trade of clothes, sports equipment and agency business.

Within the framework of the development plan witnessed by the various sectors of the state, the
Ministry of Public Business Sector directed to take serious steps towards developing faltering
industries, and the company began to resume its activity again and directed to produce modern
products commensurate with the nature of the stages of products that the company produces in
the field of shoes:

• leather shoes

• Sports shoes

• walking shoes

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• Safety shoes

It became one of the main objectives of the company to enter a new market thanks to the
use of research and development results.

The company aims to address the low-income and middle-income class through the knowledge
of previous generations of the brand and the association of the name with multiple memories.

In order to reach this segment and the required categories, the focus will be on the
governorates of Lower Egypt, North Upper Egypt and Upper Egypt by the end of this year.

The target plan is to acquire the highest percentage of sales from the market through
customer satisfaction with the products that are produced and distributed at a low price, high
quality, quality and durability.

Reliance on Network Marketing (Person to Person)

gifts for individuals

Discount at different times of the year.

ANALYSIS AND RECCOMENDATIONS

 74% of the people are brand conscious while purchasing shoes for themselves, whereas
26% do not consider brand name as a deciding factor for buying shoes.

 When the respondents were asked about their brand preference, 40% said that they prefer
Nike, 16% preferred Adidas, 22% preferred Puma, 12% went with Reebok and remaining
10% said that they would prefer other brands. This means that most of the people prefer
buying Nike shoes.

 The deciding factors for buying shoes for people are mainly comfort, quality and brand
name, whereas, packaging and personality do not matter to people.

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 30% of the respondents are brand loyal to Nike, 26% people regularly shift to other
brands of shoes. This means that larger number of people prefer Nike over other brands.

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 its
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. 

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 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.

OPPORTUNITIES

 Product development offers Nike many opportunities. The brand is fiercely defended by
its owners whom truly believe that Nike is not a fashion brand. However, like it or not,
consumers that wear Nike product do not always buy it to participate in sport. Some
would argue that in youth culture especially, Nike is a fashion brand. This creates its own
opportunities, since product could become unfashionable before it wears out i.e.
consumers need to replace the shoes.

 There is also the opportunity to develop products such as sport wear, sunglasses and
jewellery. Such high value items do tend to have associated with them, high profits. 

 The business could also be developed internationally, building upon its strong global
brand recognition. There are many markets that have the disposable income to spend on
high value sports goods. For example, emerging markets such as China and India have a
new richer generation of consumers. There are also global marketing events that can be
utilized to support the brand such as the World Cup (soccer) and The Olympics.

THREATS

 Nike is exposed to the international nature of trade. It buys and sells in different
currencies and so costs and margins are not stable over long periods of time. Such an
exposure could mean that Nike may be manufacturing and/or selling at a loss. This is an
issue that faces all global brands.

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  The market for sports shoes and garments is very competitive. The model developed by
Phil Knight in his Stamford Business School days (high value branded product
manufactured at a low cost) is now commonly used and to an extent is no longer a basis
for sustainable competitive advantage. Competitors are developing alternative brands to
take away Nike's market share. 

 As discussed above in weaknesses, the retail sector is becoming price competitive. This
ultimately means that consumers are shopping around for a better deal. So if one store
charges a price for a pair of sports shoes, the consumer could go to the store along the
street to compare prices for the exactly the same item, and buy the cheaper of the two.
Such consumer price sensitivity is a potential external threat to Nike. 

Marketing strategy:

Segmentation:

Identify how you will segment the market. The main types of segmentation strategies are as
follows):

Geographic segmentation:

Divide the market into geographical units

Nation: Egypt
Governate: All Egypt governates
Urban/Rural: Urban
Regional: 5 regions (Cairo Giza, Alexandria, canal zone, Delta and Upper Egypt)

 Bata is present across the country through more than 60 stores. This means Bata is a
product for all Egypt. And seeking to open about 20 new branches in North Upper
Egypt Region and Southern Upper Egypt Region

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Demographic segmentation:

Divide the market on variables such as age, life cycle, gender, income, generation, and
social class
Age: 20-27 years old 28-37 years old 37-45 years old
Life cycle: Adolescence, Youth and Adulthood
Life stage: Single, Divorce, Second marriage…
Gender: Male
Female

Income: Less than 1500 L.E

1500-3000 L.E
3000-4500 L.E
More than 4500 L.E

Social class: Class (B.C1.C2)

Class B: Middle
Class C1: Lower Middle
Class C2: Skilled working

 *We decide to target those are Middle class as they are one of the largest social groups in
Egypt.

Psychographic segmentation:
Buyers are divided into different groups on the basis of psychological/personality traits,
lifestyle, or values Achiever

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 Innovators: "niche-oriented products and services"
Thinkers: They seek durability, functionality, and value in products.
Achievers: They favor premium products that demonstrate success to their peers.
Believers: "Conservative, conventional, and traditional people with concrete beliefs."
Strivers: "They favor stylish products that emulate the purchases of those with greater
material wealth".
Makers: They seek Egyptian made products with a practical or functional purpose.
Survivors: " Elderly, passive people concerned about change and loyal to their favorite
brands"
*We decide to target: thinker, achiever and maker persons those are fit Bata vision to the
characteristic and responsibilities of customers.

Behavior segmentation:
Divide buyers into groups on the basis of their knowledge of, attitude toward, use of, or
response to a product.
Behavioral Variables:
• Occasions: Regular occasion and special occasion (which vary according to the nature
of each segment)
As about 65 % of customer prefer to buy during special occasion and during special sales
offers.
• User Status: nonusers, ex-users, potential users, first-time users, and regular
users.

Potential user and Ex-user (about 55% of customer used Bata shoes from more than
5 years)

• Usage Rate: light, medium, and heavy product users

• Buyer-Readiness: unaware /Aware/ informed/ interested/ desire/ intend to buy
Awareness group only (more than 70% of buyer are aware to Bata)
• Attitude: enthusiastic, positive, indifferent, negative, and hostile
• Loyalty Status: Hard-core locals, Split loyal, shifting loyal and Switchers
Shifting loyal—Consumers who shift loyalty from one brand to another

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 Switchers—Consumers who show no loyalty to any brand only the price can switch his
opinion.

 *We decide to target those are (Switcher loyal) Where Bata company offers its products at
competitive prices .

Targeting:

The Target Market of BATA is Differentiated target market Since BATA has multi-segmented
market.
So, it is using Differentiated target marketing strategy. Bata Shoe Company has covered the
whole shoe market with its different types of segments, offers and services. Whatever the
demand of shoes is, Bata is there to serve. It has every kind of shoes. If high class, high income
people want to have a luxurious shoe Bata can fulfil their demand. If a lower class, low income
people want a shoe just to cover their feet Bata has something to serve them also. By offering
product and market variations to segments, Bata get high sales and a stronger position within
each market segment. And So BATA is Going After several market segments with offers tailored
to each Segment.

Positioning:
Developing a stronger position within several segments creates more total sales than
undifferentiated marketing across all segments. By using this strategy Bata is also making huge
amount of profit worldwide.
A product’s position is the way the product is defined by consumer on important attribute the
place the product occupies in consumers’ minds relative to competing products. Bata is
positioned as superior quality, soft, attractive and fashionable. Bata says “No one in the world
knows shoes like we do”. Sometimes consumers are overloaded with information about products
and services.
They cannot revaluate products every time they make a purchase decision. To simplify the
buying process, consumers organize products, services and companies into categories and
position them in their mind. Tag line of Bata can be easily positioned in peoples’ mind that Bata

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produces or serves superior quality of shoes better than anyone. To have a better position in
peoples mind Bata has differentiated them is some points so that consumer can easily
differentiate them from other competitors. Differentiations of Bata are: Product differentiation:
Bata differentiates their product on the basis of Features, performance etc.
Their product quality differentiates them from other competitors easily. People believe that they
will find best product there without any doubt. Service differentiation: Bata gains service
differentiation though speedy, convenient and careful delivery. It has high quality customer care
which makes consumer happy. Bata is one of the most convenient shoe companies. Whenever
people need to buy shoes, they can find in easily in their local area or in nearest possible
distance. Channel Differentiation: Bata has gained channel differentiation through the way they
design their channel’s coverage, expertise and performance. People differentiation: Hiring and
training better people help Bata to get People differentiation. They have trained salesman who
help people to buy right product and convince them to buy their product in a polite way. Image
differentiation: Bata has created a very strong and distinctive brand image in peoples’ mind.
They have a unique logo and people can easily differentiate them through their logo. Image
differentiation cannot be created overnight; some advertisement is must for it. Bata has also
advertised their product to create Image differentiation.

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