Advertisement of Nike

Nike Footwear ---Nike Inc
INTRODUCTION
This product is a foot ware, it offers a various ranges of

footwear with different models and prices, and the core benefit
offered is foot care for any type of foot wears. Nike is known for its
value delivery process.
Although the industry is highly segmented by different sports,

models and price the branded shoe segment is dominated by a few
large companies (e.g., Nike, Reebok, Adidas). In fact, the top 10
footwear companies control over 70% of the global athletic footwear
market Since displacing Adidas in the early 1980s and Reebok in the
early 1990s, Nike has become the largest and most important athletic
shoe company in the world.
B.R.B. COLLEGE OF COMMERECE RAICHUR
OBJECTIVE OF STUDY
The following are the study objectives:
To know the opinion of consumers towards the quality of the

product.
To know whether consumers are happy with the range of Nike
Products (Shoes) offered by Nike.
To understand buying motives towards Nike Products.
To ascertain the awareness of the products among consumer
(Through sources of awareness like news paper, T.V adds, etc)
To know demand of the product in the market.
To suggest appropriate Marketing strategies.
SCOPE OF STUDY
The study was carried out by questioner method, taking
random sample method. The sample included the distributor as

well as the user of the product in the town. The study was aimed
to find out the consumer behavior & their motives while
purchasing Nike products. Closed end questioner method is
employed to avoid the discrepancy if any. All the data were
collected meeting people in person from jan 01 to jan 10 totally it
took 10 days to know about the product. The present study limits
to the view presented by responding to questioner.
COMPANY PROFILE
Nike, Inc. is a major American manufacturer of athletic shoes,

clothing/apparel, and sports equipment. The company takes its name
from the Greek goddess of victory, Nike. Nike markets its products
under its own brand as well as Air Jordan, Total 90, Nike Golf and
Team Starter (among others), as well as under brands of Mason
Belmonte subsidiaries including Bauer, Cole Haan, Converse, and
Hurley International. Nike has been criticised for the working
conditions and production methods in the overseas factories with
which it contracts.
The mark now known as the Swoosh is created by graphic
design artist Carolyn Davidson in June. Several weeks later, Jeff
Johnson suggests the name "Nike" for the first shoes that bear with
the Swoosh mark.
Founded in 1964 through an investment of $500 each by Phil

Knight and Bill Bowerman, the company (then called Blue Ribbon
Sports--BLS) has evolved from being An importer and distributor of
Japanese specialty running shoes to becoming the world leader in
the design, distribution and marketing of athletic footwear. Their

business model in 1964 is essentially the same as their model today.
They grow by investing their money in design, development,
marketing and sales and then contract with other companies to
manufacture their products. According to company legend, Knight
developed Nikes business model while attending Stanford
Business School in the early 1960s. Knight realized that while

lower-cost, high-quality Japanese producers were beginning to take
over the US consumer appliance and electronic markets, most
leading footwear companies (e.g.,Adidas) were still manufacturing
their own shoes in higher-cost countries like the UnitedStates and
Germany. By outsourcing shoe production to lower-cost Japanese
producers, Knight believed that Blue Ribbon Sports could undersell
its competitors and break into this market. As a result, Blue Ribbon
Sports began to import high-tech sports shoes from Onitsuka Tiger of
Japan. As sales increased to almost $2 million in the early 1970s,
BLS parted ways with Onitsuka and began to design and subcontract
its own line of shoes. The Nike brand was launched in 1972, and the
company officially changed its name to Nike Inc. in 1978. Nike
developed a strong working relationship with two Japanese shoe
manufacturers, Nippon Rubber and Nihon-Koyo, but as costs/prices

increased in Japan over the course of the 1970s due to Crisis on
Japans economy, and a shift in the dollar/yen exchange rate as a
result of the so-called Nixon shock Nike began to search for
alternative, lower-cost producers.
During these same years, Nike opened up its own shoe

factories in Maine and New Hampshire, hoping to develop a reliable
and high-quality source to supply its growing domestic market. At the
same time, the company also began to cultivate potential suppliers in
Korea, Thailand, China and Taiwan. By the early 1980s, as costs
continued to increase in both Japan and the United States, and as
the Korean government created a number of incentives to develop
Koreas footwear industry,6 Nike closed its US factories and sourced
almost all of its production from Asia. In 1982, 86% of Nikes athletic
footwear came from Korea and Taiwan. Over time, as Korea .
Taiwan also began to develop, costs began to rise in these

countries as well.
As a result, Nike began to urge its suppliers to re-locate their

operations to other, lower-cost countries. The company worked with
its lead suppliers to open up manufacturing plants in Indonesia,
China and Vietnam. By guaranteeing a significant number of orders
and by placing Nike employees at these new factories to help monitor
product quality and production processes, Nike was able to help its
lead vendors establish an extensive network of footwear factories
throughout Southeast Asia. Today, Nikes products are manufactured
in more than 700 factories, employing over 500,000 workers in 51
countries.
DATA ANALYSIS AND INTERPRETATION
1 Since how many years you are using Nike products?

a. 1 year
(college students & youngsters)
b. 2 years ( college students)

c. 3 years
(sports person; new entrant)
d. 5 years (sports person)
Years
User
No
of Percentage
Respondents
1 Year
2 Years
Younger
College
3 Years
student
Sport
5 Years
person
Sport
person
25
20
15
Series1
10
5
0
1 YEAR
2 YEAR
3YEAR
5YEAR
Conclusion: Though the sportspersons has a good preference

for Nike, but most of youngsters are purchasing it for its style,
coziness & trendy look.
2. How do you feel about the brand of the Nike product?

a) Good
b) Very good
c) Fair
d) Not bad
20
18
16
14
12
10
Series1
8
6
4
2
0
GOOD
V.GOOD
FAIR
NOT BAD
Conclusion: Almost majority of customer found it good product to

use, where as few had mixed decision, almost 40% found it
satisfactory.
3. Who influenced you to use this brand ?

a) Sports Person
b) Friends
c) Advertising
d) Offers
e) Self
10
9
8
7
6
5
Series1
4
3
2
1
0
S.PERSON
FRNDS
ADVT
OFFERS
SELF
Conclusion: The major influencer are sports person / celebrity,

where as offer stand as the next factor. All others are almost equal.
4. Would you like to continue the product?
a) Yes
b) No
c) Cant say
14
12
10
8
Series1
6
4
2
0
YES
NO
CAN,TSAY
Conclusion: Majority of the people are still not confident about their
future purchase, but Nike has managed to make reasonable number
of loyal customers with repetitive purchasing. Only very few said No.
5. If yes, it is because of?

a. Stylish & Trendy
b. Durability & comfort
c. Good sport product
16
14
12
10
8
Series1
6
4
2
0
S.TRENDY
D.COMFORT
G.S.PRDT
Conclusion: Nike are perceived as most durable & comfortable

brand, over style & sport utility product.
6. Are you satisfied with the Product?

a. Yes
b. No
18
16
14
12
10
Series1
8
6
4
2
0
YES
NO
Conclusion: Majority of customers are satisfied. But still the

unsatisfied mass is considerable & need a quick attention.
7.Are you satisfied with price?
a. Yes
b. No
20
18
16
14
12
10
8
6
4
2
0
Series1
YES
NO
Conclusion: Price doesnt seem to be the issue in purchasing,

though slight reduction can improve its market share.
8. Where you have seen this product?

c. T.V
d. Magazine
e. Windows display / banners
16
14
12
10
8
Series1
6
4
2
0
T.V
MAGAZINE
W.D.BANNER
Conclusion: T. V has proved to be the best source of advertisement

as it generated the majority of interest as compare to magazines &
banners.
9. Do you like to shift to Nike

f. Yes
g. No
h. Cant say
16
14
12
10
8
Series1
6
4
2
0
YES
NO
CAN'T SAY
Conclusion: It is clearly seen that still majority of customers are not

clear about their purchase habit & needed to be shifted to a loyal
customer group through effective strategy.
10) What is your opinion about the Nike footwear?
a. Good
b. Better
c. Bad
18
16
14
12
10
Series1
8
6
4
2
0
GOOD
BETTER
BAD
Conclusion: About 60% of customers found Nike as good product,

where as 40% found it a better brand. Almost 99% of consumer
found Nike a good product.
11) Which product (Foot wear) you are using

a) Semi formal
b) Casual user
c) Sport wear
d) Athletic wear
e) Foot ball show
12
10
8
6
Series1
4
2
0
S.FORMAL
CASUAL
USER
SPORT.W ATHLE.W
FOOT.B.S
Conclusion: Majority of customers use Nike sports wear, where as

all other brands are equally divided in-group.
12.What do you feel about the price?

a) Expense
b) Average
c) Economic
18
16
14
12
10
Series1
8
6
4
2
0
EXP ENCE
AVERAGE
ECONOMIC
Conclusion: Majority of customers use Nike sports wear, where as

all other brands are equally divided in-group.
METHODOLOGY
The Primary data was obtained through dealers.

The Secondary data is collected from the annual report of the co.
circular, sales report, performance report of marketing department,
more over web site &T.V. Selection of source: Nike dealers and
retailers outlet were selected on random sampling method during
the research. Interview method with the help of structured
questionnaire.
CONCLUSION
After the study of the product it is concluded that this product has its
own place and pride in the market. It is appealing to wide mass & the
people all over India are using this product.
The company has created a good reputation in the market due to its
affordability & style. The advertising about the Nike in the T.V is quite
effective.
Nike foot wears offered and provided an excellent customer

satisfaction, its price is mostly reasonable but still much can be
offered in this section. From above mentioned points it has been
noticed that Nike products are used by both sportspersons as well as
youngsters its added advantage were less stress on feet, easy walk
ability & comfort make this brand as leader in Market.
SUGGESTION
This survey of Nike Inc has led to the following suggestion after the
complete SWOT analysis & deep study of its conclusion.
1. Companys policy of shifting to low economy country for its
production will not fetch him long term success unless it find
some other strategy for it low cost shoes.
2. Nikes product are more of western taste, But to succeed in
India, company must understand Indian consumer, where
majority of people are living in villages and small towns.
3. Price is low as compared to other countries but still much can
be done in this sector to raise the sale without sacrificing its
image.
4. Nikes image as brand of sports wear is limiting its market
share to sports segment and its casual shoes is still unknown
to consumers.
5. Strong Need is felt to promote casual shoes by effective
promotional strategy.
6. Company should look for market penetration strategy rather
than competing for only single sector (Sports).
QUESTIONER
Hello,
Consumer,
I am student of B.R.B College studying in B.com III rdyr . I am
doing project work on Nike footwear. So I need your co-operation. I
kindly request you to read this & give your suggestion about this
product.
1 since how many years you are using Nike products?

a) a. Year college students and youngsters
b) b. Years college students
c) c. Years sports person (new entrant)
d) d. Years sports person
2. How do you feel about the brand of the Nike product?

a) Good
b) Very good
c) Fair
d) Not bad
3. Who influenced you to use this brand?

a) Sports Person
b) Friends
c) Advertising
d) Offers
e) Self
4. Would you like to continue the product?

a) Yes
b) No
c) Cant say
a) Stylish & Trendy
b) Durability & comfort
c) Good sport product
a) Yes
b) No
5. If yes, its because of ?
6. Are you satisfied with the Product?
7.Are you satisfied with price?

a) Yes
b) No
]
]
8. Where you have seen this product?

a) T.V
b) Magazine
c) Windows display / banners
a) a. Good
b) b. Better
c) c. Bad
a) Semi formal
b) Casual user
c) Sport wear
d) Athletic wear
e) Foot ball show
9.What is your opinion about the Nike foot ware ?
10. Which product Foot ware you are using?
11. Do you like to shift to Nike?

a) Yes
b) No
c) Cant say
a) Expense
b) Average
c) Economic
12.What do you feel about the price
FINDINGS
An analysis has revealed that:

1) 97 % of the respondents are aware of Nike shoes.
2) 30 % of the respondents are aware of Nike through friends.
3) Other than Nike, respondents own a pair of Nike shoes.
4) Respondents find the advertisement of Nike very attractive.
5) Respondents also find the advertisements of Nike is effective
enough for customer service.
6) 90 % of the respondents feel the pair is very expensive.
7) The customer care is good in Nike show rooms.
8) 65 % of the respondents own a pair of Nike shoes.
Many of the respondents do recommend Nike to others.

Though some may not as they are brand loyal to other shoes and
some replied that the shoes are very expensive to recommend.
BIBLIOGRAPHY
CONSUMER BEHAVIOUR
By Suja R. Nair
And also from Website sites -
www.nike.com
www.google.com
Why Nike products are costly:
Making cost is less.

Materials, labor shipping, equipment, import duties and
suppliers cost generally around $25 for them
On every pair they want to make at least a profit.
Nike value delivery process

Zero customer feedback time
Zero product improvement time
Zero purchasing time
Zero setup time
Zero defects
They are following pull strategy by making their product as a

value based product and through advertisement endorsements.
MARKETING MIX
Product mixes
Place
Price
Promotion
1. Variety
Channels
Marked price
Sales promotion
2. Quality
Coverage
Discounts
Advertising
3. Design
Assortments Payment mode Sales force
4. Features
Locations
Credit terms
5. Brand name
Inventory
Direct marketing
6. Packing
Transport
7. Sizes
8. Warranties
9. Returns
Public relations
PRODUCT MIX
Nike has been successful in the market from last 35 years

because of its wide range of varieties, good quality and new designs.
Some part of the sales done because of its brand name only. It is
providing a service warranty of 6 months and shoes are available
from 5 to 12. It is no spending much on packing, its packaging is
very simple.
Place
It does its transport through shipment. There are many
intermediaries in between the manufacturer and the customer. Its
main sales in cities. So they are mainly concentrating on cities. It
covers a wide range of market in the cities. They are following
selective distribution procedure. They supply their products to
selective showrooms.
Price
Generally the payment mode will be either by credit or cash.
They are providing some credit terms to their dealers. Some
discounts will be there in end of seasons like winter end sales and
summer end sales etc., this is mainly in the case of apparels and
accessories. It is less in the case of shoes.
Promotion
Promotion is mainly through advertising. Nike is spending lots
of money for their brand ambassadors. Their ambassadors include
Tigerwoods, Ronaldo, Ronaldinho like that. They are producing
mainly sports products so their promotion is mainly through sports
personalities and teams. For example now Indian team is wearing the
T-shirts that consists of Nike brand logo. They are advertising
through hoardings, billboards, paper adds and TV adds.
Nike is also well known for its strong sponsorship agreements

with athletes, leagues and federations, as well as many of the worlds
top football (soccer) clubs and national teams, including Manchester
United, Arsenal, F.C. Basel, Juventus, Clube de Regatasd Flmengo,
Steaua Bucuresti, AC Sparta Praha, Red Stat Belgrade, Inter Milan,
VfL Bochum, VfL Wolfsburg, Hertha BSC Berlin, Borussia Dortmund,
PSV Eindhoven, Valencia C.F., Urawa Red Diamonds, Kaizer Chiefs,

Atletico de Madrid, NK Maribor, Celtic, FC Porto, Paris SaintGermain,
Boca
Juniors,
Corinthians,
Brazil,
Portugal,
the
Netherlands, Belgium, Russia, Morocco, India, South Korea, Serbia,

Croatia, Turkey, Mexico and the United States mens womens, and
Australia to produce their equipment. On December 23, 2005, Nike
signed a 5-year contract (beginning January) 1, 2006) with the India
Cricket Team to become their official apparel supplier for $43

million. Nevertheless Nike does not have an India-specific website or
any mention of cricket on Nike.com.
Trade
promotions
through
discounts,
allowances,
trade
incentives, goods sending on credit basis and free goods etc.,
Which type of pricing they are following?

They entered market with a penetration pricing. Now they are
following value pricing because Nike has its own brand image and
value.
Every product has a basic need and as well some extra

fulfillments. In the case of Footwear.
Core benefit:
Foot care is the benefit for any type of footwear
Generic product
Foot care with comfort
Expected product
Foot care, comfort, available in all sizes with a reasonable price
Augmented product
Foot care, comfort available in all sizes with light weight and long life
with reasonable prices.
Potential product
Which has less stress on feet, make our walk easy and very comfort.
MARKET MIX
Shoes
Apparels
Accessories and
Sports
Equipments
Semi Formal (8)
T-Shirts (40)
Golf sticks (3)
Casual wear (23)
Tracks (12)
Dollars
Sports wear (38)
Socks (16)
Rings
Athletic wear (23)
Briefs
Football shoe (6)
Under wears (6)
(6)
Product line
:3
Width of the product mix
:3
Length of product mix
: 13
Depth of the product mix
: 207
(7)
(19)
SEGMENTATION
The Geographic distribution done according to the city size etc.,

The demographic segmentation done through age. The main
age range, which they are concentrating, is between 16 to 35, it
is also done through gender. And one more important factor is
income and occupation. Students and technical professionals
mainly use Nike products.
Psychological segmentation done through the lifestyles of the
people.
The Behavioral segmentation done by the benefits of it like
quality, service, economy and how speed it is moving on. And
one more additional advantage is it is people having a positive
attitude towards it.
Targeting
They are making a selective specialization
The each segment they are making must be a profit maker
They are specialized in marketing for the targeting that which
class and type of people they have to target.
Positioning
They are following different type of positioning
Frontier which means product leadership
Performance in operational excellence
Individual needs
From the three they will select any one of them and enter into
the market. This is called unique selling proposition
In many aspects Nike is number one according to recent
survey conducted on market by a American magazine those are
Best quality
Best performance
Best styling
Best value
Lowest price
Fast moving
Most customized
Most technological
Subcontract its own line of shoes. The Nike brand was

launched in 1972, and the company officially changed as name to
Nike, Inc. in 1978. Nike developed a strong working relationship with
two Japanese shoe manufacturers, Rubber and Nihon-Koyo but as
cost/prices increased in Japan over the course of the 1970s due to
Crisis on Japans economy, and a shift in the dollar/yen exchange
rate as a result of these-called Nixon shock Nike began to search
for alternative, lower-cost products.
During these same years, Nike opened up its own shoe

factories in Maine and EW Hampshire, hoping to develop a reliable
and high-quality source to supply its growing domestic market. At the
same time, the company also began to cultivate potential suppliers in
Korea, Thailand, China and Taiwan. By the early 1980s, as costs
continued to increase in both Japan and the United States, and as
the Korean government created a number of incentives to develop
Koreas footwear industry, Nike closed its US factories and sourced
almost all of its production from Asia. In 1982, 86% of Nikes athletic
footwear came from Korea and Taiwan. Over time, as Korea and

Taiwan also began to develop, costs began to rise in these countries
as well.
As a result, Nike began to urge its suppliers to re-locate their

operations to other, lower-cost countries. The company worked with
its lead suppliers to open up manufacturing plants in Indonesia,
China and Vietnam. By guaranteeing a significant number of orders
and by placing Nike employees at these new factories to help monitor
product quality and production processes, Nike was able to help its
lead vendors establish an extensive network of footwear factories
throughout Southeast Asia. Today, Nikes products are manufactured
in more than 700 factories, employing over 500,000 workers in 51
countries.
Nike core competencies make advantages to it because
It is a source of competitive advantage in that it makes
significant contribution to perceived customer benefits.
It has a wide variety of applications for wide range of markets.
It is difficult to competitors to imitate.

Advertisement of Nike

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Advertisement of Nike

Uploaded by

Copyright:

Available Formats

Nike Footwear ---Nike Inc

This product is a foot ware, it offers a various ranges of

Although the industry is highly segmented by different sports,

B.R.B. COLLEGE OF COMMERECE RAICHUR

Nike Footwear ---Nike Inc

The following are the study objectives:

To know the opinion of consumers towards the quality of the

B.R.B. COLLEGE OF COMMERECE RAICHUR

Nike Footwear ---Nike Inc

The study was carried out by questioner method, taking

random sample method. The sample included the distributor as

B.R.B. COLLEGE OF COMMERECE RAICHUR

Nike Footwear ---Nike Inc

Nike, Inc. is a major American manufacturer of athletic shoes,

Founded in 1964 through an investment of $500 each by Phil

B.R.B. COLLEGE OF COMMERECE RAICHUR

Nike Footwear ---Nike Inc

the design, distribution and marketing of athletic footwear. Their

Business School in the early 1960s. Knight realized that while

B.R.B. COLLEGE OF COMMERECE RAICHUR

Nike Footwear ---Nike Inc

manufacturers, Nippon Rubber and Nihon-Koyo, but as costs/prices

During these same years, Nike opened up its own shoe

Taiwan also began to develop, costs began to rise in these

B.R.B. COLLEGE OF COMMERECE RAICHUR

Nike Footwear ---Nike Inc

As a result, Nike began to urge its suppliers to re-locate their

B.R.B. COLLEGE OF COMMERECE RAICHUR

Nike Footwear ---Nike Inc

DATA ANALYSIS AND INTERPRETATION

1 Since how many years you are using Nike products?

(college students & youngsters)

b. 2 years ( college students)

(sports person; new entrant)

d. 5 years (sports person)

B.R.B. COLLEGE OF COMMERECE RAICHUR

Nike Footwear ---Nike Inc

Conclusion: Though the sportspersons has a good preference

B.R.B. COLLEGE OF COMMERECE RAICHUR

Nike Footwear ---Nike Inc

2. How do you feel about the brand of the Nike product?

Conclusion: Almost majority of customer found it good product to

B.R.B. COLLEGE OF COMMERECE RAICHUR

Nike Footwear ---Nike Inc

3. Who influenced you to use this brand ?

Conclusion: The major influencer are sports person / celebrity,

B.R.B. COLLEGE OF COMMERECE RAICHUR

Nike Footwear ---Nike Inc

4. Would you like to continue the product?

B.R.B. COLLEGE OF COMMERECE RAICHUR

Nike Footwear ---Nike Inc

5. If yes, it is because of?

Conclusion: Nike are perceived as most durable & comfortable

B.R.B. COLLEGE OF COMMERECE RAICHUR

Nike Footwear ---Nike Inc

6. Are you satisfied with the Product?

Conclusion: Majority of customers are satisfied. But still the

B.R.B. COLLEGE OF COMMERECE RAICHUR

Nike Footwear ---Nike Inc

7.Are you satisfied with price?

Conclusion: Price doesnt seem to be the issue in purchasing,

B.R.B. COLLEGE OF COMMERECE RAICHUR

Nike Footwear ---Nike Inc