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 1HISTORICAL 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 running, football, basketball and courts etc.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 expansionThreats: 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 onArabian cultureand has been heavily influenced byPersian 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 dayThe 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 bidto hostthe 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:TypeMarket shareShare Value (AED)million

Non Leather sports footwearAll leather Non-sports footwearLeather sports footwearLadies shoesCasual shoesWater Proof ShoeOthers20252010151010900100015003007325001000

Total100%5000

REASON FOR LAUNCHING IN UAE1) 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 footwear6) 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 women7) Bata is well known brand in different countries and has a developed brand image and identity in the market8) Tourism will continue to be a big contributor to apparel and footwear growth9) Save time carrying out entry-level research by identifying the size, growth, and leading players in the footwear market in United Arab Emirates

SECTION 3LAUNCH PLAN: To build awareness: Endorsements: We will use celebrity endorsement 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: Social media campaign: we will use the social media campaign through Twitter, Facebook, Instragram etc 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 cultureb) Considering communities as partners in progress and involving employees in a two-way communication with themc) Allocating resources to enhance the well-being of the communities in which BATA operatesd) Collaborating with people in the communities who are dedicated to raising standards of education and economic well-being