This document discusses market segmentation strategies used by Bata Shoe Company. It describes four bases for segmenting consumer markets: demographic, geographic, psychographic, and behavioral. For demographic segmentation, Bata segments based on age (releasing lines for kids and teens), gender (creating women's and men's lines), income, education, occupation, family size, family life cycle, generation, and social class. Geographic segmentation considers location, country, region, climate, and metro/rural areas. Psychographic segmentation analyzes personality, lifestyle, attitudes, perceptions, activities, and interests. Behavioral segmentation examines benefits sought, occasion, usage rate, loyalty status, and buyer readiness stage.
1. BANGLADESH UNIVERSITY OF PROFESSIONALS (BUP)
Course Title: Consumer Behavior (MKT 8603)
Assignment on
Market Segmentation on Bata
Submitted To
Dr. khondaker Saifuzzaman
Associate Professor
Faculty of Business Studies (BUP)
Submitted By
Ahmed Istiaq Murad
ID: 1407076
Date of Submission
09/02/2018
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MARKET SEGMENTATION
Market segmentation is the process of dividing a broad consumer or business market, normally
consisting of existing and potential customers, into sub-groups of consumers based on some type
of shared characteristics.
BASIS OF SEGMENTING CONSUMER MARKETS
The four bases for segmenting consumer market are as follows:
Demographic Segmentation
Geographic Segmentation
Psychographic Segmentation
Behavioural Segmentation.
DEMOGRAPHICS SEGMENTATION
Demographics segmentation is a common strategy where it is possible to
identify market segments based on shared demographic or personality qualities. Specific
characteristics often used in demographics segmentation include age, gender, race, marital
status, income, education, family size, family life cycle, generation, social class, religion,
nationality, culture, occupation and sub-culture.
Age
Age plays an integral role in how companies promote their products online and offline.
Segmenting market by age often involves diversifying pricing and color options, and adjusting
features to fit the anticipated needs and expectations of each age group. Like Bata released
BUBBLEGUMMERS and BATA SCHOOL for kids (3-5) & teenagers (8-12).
Gender
While the target market for a given product can include females and males, one gender may
represent a larger share of a company's target market. Businesses can segment their markets by
gender, and come up with variations of their products devoted to serving a specific gender or
alter their marketing campaigns to appeal to the male or female segment. Like, Bata Shoe
Company, that manufactures men and women's shoes, created a new segment MARIE CLAIRE
for the women customers and promote a new dress line, while WEINBRENNER promoting a
new style collections for the men.
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Income
When companies develop pricing strategies for their brands and products, they consider the
income levels of their target markets. Salary, or income level, is an example of a demographic
segmentation businesses use when they prepare to introduce a product to the market or initiate a
sale. For example, Sandak by Bata had created affordable Sandals, targeting to reach customers
who cannot afford their high-end, more expensive lines. On the other hand, WEINBRENNER
was created with more expensive lines.
Education
Education also plays an important role in how companies promote their products. Segmenting
market by education often involves diversifying pricing and color options, and adjusting features
to fit the anticipated needs and expectations of each age group. Like B.First by Bata introduced
targeting School students with School Socks and Light Weight Sporty School Shoe.
Occupation
Businesses who offer products and services to individuals and businesses in specific professions
or industries may use their demographic data to segment their markets by occupation.
Occupation may be Blue Colored, White Colored etc. For Example, HUSH PUPPIES is
targeting White Colored persons, whereas Bata Comfits targets those Blue colored whose
profession requires them to perform a good amount of manual labor, so that they can feel
comfort in footwear.
Family size
1 person (Single), 2 (Couple), 3 (one Kid), 4, 5 or more. Family sizes also play a major issue in
the purchase decision of your product if it is a footwear also. Say for example, a married person
(Middle class) with three school going kids will think twice before purchasing a official HUSH
PUPPIES due to high price of that particular brand.
Family life cycle
Young, single, engaged, DINKS (double income no kids), SINKS (single income no kids),
married with kids (babies, toddler, elementary school age, teen, older), recently divorced, empty
nester (children have moved out), same-sex couples, single parents, extended parents
(grandparents raising their grandchildren), retired (either wealthy or Medicare dependent/poor).
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Like a person was born in 1990 liked to wear Bubblegummers due to style range, this generation
is today adult & usually goes for COMFITS/HUSH PUPPIES.
Generation
Silent, Matures, Baby Boomer, Gen X, Gen Y, Boomlets. For Example, Generation born
between 1990-2000 liked to wear Bubblegummers due to style range, this generation is today
adult & usually goes for Comfits/Hush Pupies.
Social Class
This includes Upper class, middle class, lower class etc. Bata segmented their market in this way
as well. Like for mens Upper class Hush Pupies, middle class Bata, lower class Patapata.
Nationality & Culture
American, French, English, African, Russian, Indian etc. Base on Nationality & Culture
consumer choices differ. For which few designs are very popular in UK which are not likely
famous in Bangladesh/India due to culture.
GEOGRAPHIC SEGMENTATION
Geographic segmentation is when a business divides its market on the basis of geography. We
can geographically segment a market by area, such as cities, counties, regions, countries, and
international regions. Also we can break a market down into rural, suburban and urban areas.
Location/Country
Location/Domestic/International. As an international brand Bata has different stores globally as
it is a MNC. However, shoes available in stores of South Africa/China are not available in Bata
Bangladesh stores.
Region
North, South , East, West. Like Bata segmented their market as North America, Asia Pacific,
Europe & Rest of the world.
Regions within that country
For Example Dhaka, Chittagong, sylhet etc. Based on Location bata keeps different styles
emphasizing regional economic & social status.
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City/Metro density of population
Urban, Semi urban, Rural. In Urbal retail stores & Rural stores of Bata is quite different due to
economic condition, choice, lifestyle.
Climate
cold, hot, rainy, desert, beaches, mountains. Bata keeps in mind the preferences due to climate in
Bangladesh. Like in Bangladesh most of time it rains, so synthetic/Rubber/Textile based
footwear is more acceptable for general use rather than Leather shoes.
PSYCHOGRAPHIC SEGMENTATION
Psychographic segmentation involves dividing your market into segments based upon
different personality traits, values, attitudes, interests, and lifestyles of consumers.
This segmentation is advantageous because it allows you to engage in product design
and marketing in a focused manner.
Personality
The personality of a person can be defined as a set of psychological characteristics, which in turn
influence the way we think feel and act socially or individually. Power (Bata) has been given
personalities similar to target markets (Sporty) in order to stimulate sales.
Lifestyle
Different people have different lifestyle patterns and their wants and needs change based on
those patterns. A subset of lifestyle, activities interests and opinions also affect consumer buying
behavior. Different customers might have different activities and interests. I might like the sports
shoes and you might like formal shoes. But both of us like walking! Similarly, Activities,
interests and opinions tell us a lot about a customers psyche. Segmentation by lifestyle considers
where the consumer is in their life cycle and what is important to them at that exact time.
Considering Lifestyle of consumers Bata has different segments- Formal, casual, sports, outdoor,
sandals etc.
Atitude
Attitude is a predisposition consumers have toward a product or service. For example,
consumers might be skeptical about the value of Bata as it is durable coming with other brands
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or they might hold a negative opinion about bata due to past experiences (least performance of a
particular style).
Perception
Bata provides the best quality at a moderate cost comparing with other global brands.
BEHAVIOURAL SEGMENTATION
Behavioral segmentation is a marketing strategy based on actual consumer buying behaviour. It
divides the market into groups of customers according to their knowledge of, attitude towards,
use of or response to a product. In order to divide customers into groups marketers look at their
patterns of buying and using, patterns of spending money and time, their lifestyle and other
factors.
Benefits sought
Several products are targeted towards the benefits sought by the customer. Like, there has been a
market war between Bata and Apex to target the people who are Diabetics patient launching by
medicated shoes. Similarly, there are other brands which are targeted towards comfort during
wearing.
Occasion
Consumption patterns can be changed by targeting `occasion`. Research shows that during
festival seasons consumers became less-price sensitive and purchase more premium priced
products. Therefore, new design shoes for will sell out on different occasions like Eid, Puza, etc.
Usage rate
Usage rate divides customers according to the level of usage they make of the product. We can
distinguish heavy, medium or light users. Heavy users will use and buy formal shoes quite often
while light users will buy them rarely. The objective of an organisation should be to attract heavy
users who will make a greater contribution to sales.
Loyalty Status
Customers can be grouped according to their level of loyalty to the product. Consumers are loyal
to brands at different levels. Some individuals will always buy a particular brand, others will buy
this brand occasionally and ‘switchers’ will switch between brands. Many companies try to
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segment their markets into those where loyal customers can be found and retained as it is much
more profitable than acquiring new customers. The best example of behavioural segmentation by
loyalty can be seen in Comfit/HUSH PUPPIES are designed in a way that these can retain their
customer who seeks comfort & lucrative looks.
Buyer readiness stage
Another variable is a Buyer readiness stage where customers are segmented according to their
readiness to purchase the product. There are 6 stages of buyer readiness (awareness, knowledge,
liking, preference, conviction and purchase). Bata follows Sales promotion discounts and
personal selling through sales representatives to encourage customer to purchase.