Bata Analysis of Markets and Segments

With main focus on providing a high product quality and keep prices reasonable compared to devastation of the markets caused by the wars, they kept expanding and follow the market changes. â€Å"As a result, Bata enjoys a long history as a leading manufacturer and retailer of quality footwear, and proudly serves some one million customers each day. With more than 30,000 employees, 5,000 international retail stores, and a presence in over 70 countries, Bata is positioned to deliver an unparalleled combination of selection, quality, and service to customers around the globe. (Bata, (C) 2013) The market In a now very overcrowded market defined as a fully competitive market, because it is a heterogeneous market and has a lot of competitors, this is the situation for all Bata’s markets as they are very similar around the world. Bata’s competitors are companies such as Zara, Hamp;M and Pedro as they sell cheap products to a segment very similar to the Bata’s. In most of the countries where Bata is visible there are many copycats and markets with very cheap shoes. These local shops are also a competitor to keep in mind. One of the big main competitors is the Chinese low cost products that are exported from China to many other countries. The competition is very intense and can be defined as close as there are many competitors with very similar products competing for the costumer’s money. Project focus This project will focus on analyzing the target group and the halo segment to learn more about why the already chosen markets are attractive to Bata and which markets could be interesting later on. This is necessary to make the right choice in market segmentation and selection. We will also look into an analysis of the current market segmentation and selection including what made Bata choose the countries that they are already in. Finally we will suggest a country for Bata that could be a new lucrative market to enter, based on the earlier findings. Research methodology For this project we will use secondary data gathered from sources like newspapers, internet newspapers and the like. For the sake of the project and its reliability it is very important that the information is conducted by valid sources. It is necessary to be critical when using secondary data, as the source can be pursuing different goals with its content. To show an example; Batas website is reliable for correct information as it is important to the company and its image that stakeholders can access the right information easily. At the same time the website should also pursue to sell the company’s brand which usually makes them show only the very best sides of the company. This makes some of the information partly unreliable or at least questionable. To overcome this problem we will be aware of the sources intensions and reliability. If the source is unknown to us or the information does not fit with other information we have, we will research this to make sure we end up with the right information to base a project on. We will always look at the opportunity to find the same data from other sources to back up its reliability. Primary data would be highly valuable to us in this project – and a credible and reliable source to us as the projects main topic is to analyze the company’s market segmentation. Interviewing the company would truly bring us inside the company and data the employees go through prior to screening and selecting markets. Unfortunately it is not possible for us to get in contact with Bata. Had the time and size of this project allowed us to, it would also be possible to conduct a questionnaire from consumers in the companys stores asking why they chose Bata over its competitors. Analysis of target group The markets Bata has entered (Bata, (C) 2013) shows a market segmentation that mainly sells shoes in countries with a large segment of costumers with lower purchasing power; the middle class and lower middle class of the society. It is presumable that this makes the consumer use high involvement when purchasing these products. When this segment is satisfied with the purchase it usually will stay loyal to the brand as the segment consider for a longer time before spending money; as loyal as consumers can be these days. It is noticeable that Bata is not visible in North America, Scandinavia and UK which is another argument for theory above (Bata, (C) 2013). This method of segmenting has a great likelihood of fighting against grey markets/parallel import which is highly likely to happen between markets with segments with low purchasing power. Due to the changing markets the competition started undercutting their prices and Bata tried pursuing a new segment; the higher premium society. Bata tried and failed. When a brand focusing on a (lower) middle class segments wants to change their focus – or add focus to a higher society it very often fails. This is very likely to be because the perceived brand value is lower – often created by the price of the products. This kind of change usually just work when an expensive brand changes the target group to a lower society class, which makes the price drop. Then in the beginning the sales will boost because the consumers still perceive the same value of the brand but at a lower price – the benefit (or value) exceeds the cost of the product (to state a very basic example: it is like exchanging one Malaysian ringgit and getting one Malaysian ringgit and fifty cents back. ). That only lasts for a while until the perceived value has dropped to the same level as the actual buying price. If Bata wants to include a higher premium brand they need to create another brand as to not affect the already known products and the new premium ones. Back to the original segments; middle Class families were being offered footwear by Bata as they had shoes ranges for  school going children, young men, and even some offerings for women. In terms of the behavioral aspects Bata’s target customers could be quite price sensitive, demanding value for money, looking for basic needs to be met, and not very conscious about the shoe lasting for a long time, yet at the same time demanding adequate quality footwear which is trustworthy to last for a while. Bata may also be categorized as a store where usually entire families visit together because of the various offerings that Bata has to offer to them. The following products are Bata’s main products and the segment they focuses on, to clearly specify what usually is in Bata’s markets around the world. Bubblegummers The Bubblegummers brand serves the children segment, in the age about 0-13 years. It has provided a variety of design and type of shoes the segment. Marie Claire The Marie Clare brand is for women. Bata is trying to target the young working women who wants reasonably priced, decent design and durable shoes for work and this brand in many cases serves its segment well. Sandak Sandak is a sponge sandal that mainly serves a women segment who wants very good quality sandals in different types. It is mainly used in rainy seasons when many prefer it because it is washable and decent in looks. Power This is reasonable priced good quality sports and sandal shoes for young males and females. The target segment of Power is teenagers and some parts of the elderly people who need sneakers for walking purpose. KingsStreet The most famous dress shoes from Bata. Targeted towards the family or working man who needs nicer looking shoes for work or special occasions. Weinbrenner This brand of Bata provides trendy, outdoor, rough use footwear for men. This is also a popular brand with the youth. Though the brand is not that cheap but the quality of it is very good. Bata has other products too and many products special to the individual markets. To include all these products would require a much bigger project and more time than given.