INTERNATIONAL MARKETING REPORT PROPORSAL

LAUNCHING BATA IN UNITED ARAB EMIRATES

(UAE)

Submitted to: Riaz Khan

Submitted By: Syed Khizer Ali Moosvi (13628)

Nouman Ahmed (13325)

SECTION 1
HISTORICAL BACKGROUND OF BATA:
Bata was incorporated in Pakistan as Bata Shoe Company (Pakistan) Limited in
1951 and went public to become Bata Pakistan Limited in the year 1979.
Since its inception, the company has not only maintained a good reputation of
manufacturing high quality footwear for all segments but has also been designing
shoes in accordance with the changing fashions and trends.
Besides catering local market, Bata Pakistan also shows its presence in an
international footwear market through its export department which is constantly
exploring new potential market in order to earn foreign exchange.
Being a multinational company Bata Pakistan has played a vital role in the
economic progress of Pakistan. It has introduced sophisticated technology and
business skills to the country and provided direct and indirect employment to
about 10,000 people. Along with its own manufacturing capacity Bata Pakistan is
also outsourcing its products nationally and internationally to meet the demands
of its valued customers.
Bata has always been the market leader and in order to maintain its leadership it
has invested millions of rupees in updating its systems and equipment during the
last few years. This will enable the company to expand, modernize and develop its
operations and in the process provide additional employment opportunities.
Bata the market leader is well equipped to cater the customers demands and to
meet future challenges.

BATA Marketing Mix

Product:

The products that are made by Bata are Bubble Gummers for children, Hush
Puppies, Power includes athletic shoes, Marie Claire for women, Bata Industrial
includes safety footwear etc

Price:

Prices of the goods produced by Bata are not fixed; in fact these are maintained
strategically. Sometimes because of tough competition prices are declined to
maintain the stability in the market. Price of bata shoes are kept reasonable so
that consumer can easy buy their product

Place:

Trade presence of the brand Bata is in almost over 50 countries and the company
is performing and attaining the facilities of production.

Promotion:

Promotion strategy of Bata brand includes planning, implementation and

communicating with the customers. The company is focused on the increase in
the outlets and with doing limited advertisement. Limited advertisement includes
promotional activities with some developed brands, posters and newspaper.

SWOT ANALYSIS

Strengths:
Batas financial position is very much strong through which different strategies
are maintained by the company.
Different types of training facilities are given to employees and managers of the
company for successful sales.
Outlets of the company are easily available at different areas of the countries
and they have selling network nationwide.
Bata serves family package as all the members can attain the shoes from it.
Sports shoes are present in the category of
courts etc.

running, football, basketball and

Weaknesses:
No variety is found in enhancing the shoes in order to make them fashionable
which attract the customers.
Theres no continuous approach in respect of leadership means that managerial
functions are not properly done.
Opportunities:
Company should develop new medium to advertise its products for better
results in future.
Find out the markets where the competition level is minimum so to have
improved sales.
Company should try to do the acquisition of smaller companies for the
expansion of their own business.
--Market expansion
Threats:
Approach of the customers is changing day by day as with the change in style
and fashion.

 Due to tough competition it has become necessary for company owners to cut
down the prices.
Economical position is a great threat for the development of the company which
is a hurdle in promoting the products as well.

UNIQUE SELLING PROPOSITION:

Quality shoes which would be available at affordable price and distribution

network of Bata, which helped them to build their brand image and brand identity.
The competitive advantage of Bata would be that the company has a vast
distribution network which will help Bata to compete.

REASON FOR SELECTING THIS BRAND:

Bata is a well-known brand in Pakistan and other countries. Bata serves family
package as all the members can attain the shoes from it.
Batas financial position is very much strong through which different strategies
are maintained by the company.
Different types of training facilities are given to employees and managers of the
company for successful sales.

SECTION 2:

Country Brief: (UAE)

Emirati culture is based on Arabian culture and has been heavily influenced
by Persian culture.
Sheikh Zayed bin Sultan Al Nahyan, the founder of the UAE and ruler of the
federation since 1971, died in Nov. 2004. His son succeeded him. In Jan. 2006,
Sheik Maktoum bin Rashid Al Maktoum, the prime minister of the UAE and the
emir of Dubai, died. Crown Prince Sheikh Muhammad ibn Rashid al-Maktoum
assumed both roles.
The Burj Khalifa, in Dubai, was completed in January 2010 and became the
world's tallest building at 2,716 feet (828 meters) and 160 stories. It contains
the world's fastest elevators, 20.7 acres of glass, and is expected to use about
250,000 gallons of water per day

The UAE continues to be a strategic hub, with business-friendly free zones and a
quickly growing economy. The country has experienced significant economic
growth. Average GDP growth over 2000 to 2006 in the UAE was about 8.4
percentthe highest in the Gulf Cooperation Council, which averaged 6.5
percent.
The nominal GDP for 2007 was $192 billion. This reflects the rich natural
resources in the UAE, which has 10 percent of the total world supply of oil
reserves and the worlds fifth largest natural gas reserves.
The Arab World Competitiveness Report 2007, issued by the World Economic
Forum (WEF), ranks the UAE in the top position among Arab countries and in the
29th position among the 40 most advanced economies. It states that Sound
economic management has contributed to stabilizing the macroeconomic
environment and strengthening public institutions.
The United Arab Emirates is one of the world's fastest growing tourist and business
destinations. Traditional Arab hospitality and comfortable winter temperatures are
complemented by sophisticated infrastructure and world-class amenities.
The UAE also has become a world-class venue for conferences, regional and international
exhibitions and major global sports events such as the Dubai World Cup for horse-racing,
the Abu Dhabi Formula One Grand Prix, the Dubai Desert Classic Golf Tournament, the
FIFA Club World Cup, world class film festivals in Dubai as well as Abu Dhabi, and in
conjunction with the White House, the Global Entrepreneurship Summit. The UAE has
won the bid to host the 2020 World Expo(link is external).

Diverse culture emanates in the United Arab Emirates. Once a homogeneous

country, the country had then been filled with different ethnic compositions and
people from other countries
There are an estimate 6 million people living in the UAE. The population of the
Arab second-largest economy in the world is becoming wealthier by the day. The
past years have seen the UAE become one of the economies to provide an
excellent retail environment to both global and regional businesses. The overall

culture of Emirati has changed due to globalization. The king in UAE have changed
their outlook in the world which resulted in increase foreign investment, increase
in tourism, international brands entering the UAE market etc due to which the
culture of locals have changed. The locals and tourist loves to buy branded
clothes, shoes, cars, mobiles, cosmetic etc. Due to Strategic location of UAE
seaport the international marketers like to invest in UAE.
The Emirati footwear market had total revenues of $294.7m in 2013, representing
a compound annual rate of change (CARC) of 3.9% between 2009 and 2013. The
current situation of UAE shoe market have increased due to which we consider
this situation as a golden chance to expand Bata in Middle East.

Key Types of Footwear in UAE in 2014:

Type

Market
share

Share Value
(AED)million

Non Leather sports footwear

20

900

All leather Non-sports footwear

25

1000

Leather sports footwear

20

1500

Ladies shoes

10

300

Casual shoes

15

732

Water Proof Shoe

10

500

Others
Total

10
100%

1000
5000

REASON FOR LAUNCHING IN UAE

1) The shoe industry in UAE is attractive.
2) The size of the market is growing the demand of footwear in UAE has increased
by 13.5% in 2014.
3) Majority of the labor force are unable to purchase expensive branded shoes like
Zara, H&M, Pull & bear and etc.

4) Bata will provide shoe which would be available for these class so that they can
afford a shoe which have a better quality.
5) Leather footwear accounts for about 30% of the market share, with the rest
belonging to textile, plastic and rubber footwear
6) Estimated to hit an average of AED1 billion per year, the UAE footwear market is
witnessing increasing demand, especially for Gulf Arab sandals for both men and
women
7) Bata is well known brand in different countries and has a developed brand image
and identity in the market
8) Tourism will continue to be a big contributor to apparel and footwear growth
9) Save time carrying out entry-level research by identifying the size, growth, and
leading players in the footwear market in United Arab Emirates

SECTION 3
LAUNCH PLAN:

To build awareness:
o
Endorsements: We will use celebrity endorsement

o
o
o
o
o
o

Press release: We will use the best quote to create a press

release.
Journalists:
Advertising: we will use the advertising campaign during
the different special event
Outdoor campaign.
Website: we will make update our website to announce the
new products and its prices for the consumers.
Online purchasing:

To build demand:
o
Social media campaign: we will use the social media
campaign through Twitter, Facebook, Instragram etc
o
Referral campaign: We will inform customers about the
nenew product and its upgrade. We will also ask customers to
refer a friendif they do so, theyll be entered into a draw for
an Apple IPads

KEY MARKETING STRATEGY:

-concentrating a market niche where BATA can be the best
-acknowledging the existing and potential customers, grouping and segmenting
them characterized them by their needs and preferences in terms of shoes
selection and usage
-measuring the effectiveness of what is being done, be prepared to change
things that aren't working
-considering the mixture of controllable marketing variables that the company
will use to pursue the sought level of sales in the target market
-implementing and controlling the marketing efforts by collecting feedback and
getting back to planning
-using forms of advertising that work the best i.e. exhibitions, creating effective
points of sales, public relations initiatives, newspapers and TV ads
-consolidate the existing branded business activities into a leading industrial
and professional footwear company
-promoting awareness about the importance of right selection and usage of
footwear from health-consciousness and scientific researches angles

-supporting education and encouraging entrepreneurship to fight poverty and

exclusion via auto-subsistence with Bata's values regarding communities
involving:
a) Respecting the integrity of local culture
b) Considering communities as partners in progress and involving employees in
a two-way communication with them
c) Allocating resources to enhance the well-being of the communities in which
BATA operates
d) Collaborating with people in the communities who are dedicated to raising
standards of education and economic well-being