Professional Documents
Culture Documents
SUBMITTED TO:
CHAPTER 4 LIMITATIONS
CHAPTER 8 ANNEXURE
CHAPTER 9 BIBLIOGRAPHY
ACKNOWLEDGEMENT
Success is an effort bounded activity that involves co-operation of all.
I would like to thank my Project Guide Mrs. Ranjit Kaur for her immense
guidance, valuable help and the opportunity provided to me to complete the
project under her guidance.
Last but not the least, my gratitude to great almighty and my parents
without whose concerned and devoted support the project would not have
been the way it is today.
JASDEEP KAUR
PREFACE
The project study on CONSUMER BEHAVIOUR REGARDING VARIOUS
BRANDED SHOES has been conducted to observe the preferences of
consumers. This system of education is highly appreciated as it provides
the students with an opportunity to acquaint them with the outside world.
The practical work helps the students to view the real business world
closely, which in turn widely influences their conception and perception.
EXECUTIVE
SUMMARY
This project takes a look in various kinds of Merchandising activities,
market share of different shoes and various sales promotion schemes,
which are followed in the shoe industry. The three major players i.e.
Reebok, Nike and Adidas dominate the sports shoe industry in India. India
is one of few battlegrounds in the world where there is neck-to-neck
competition between the three. The companies claim to be in number one
sport coating the data produced by two different marketing research
companies.
In the 1980s, Adidas sneakers became popular amongst teenagers and
young men. The Adidas sneakers were popularized by the Run DMC song
“My Adidas” and became a huge fashion trend. The Tapie affair the history
of the company as presented by its official web site is incomplete, perhaps
because it is indirectly linked to financial scandals. After a period of serious
trouble. The death of Adolf Dassler‟s son Horst Dassler in 1987, the
company was bought in 1990 by Bernard Tapie, for 1.6 billion French
francs ($320million), which Tapie borrowed. Tapie was at the time a
famous specialist of rescuing bankrupt companies, a business on which he
built his fortune.
Reebok is the world‟s third- largest maker of sneakers, athletic shoes and
sport apparel. Goods are sold under the brands Reebok, Rockport and
Greg Norman Collection. Reebok is also the official outfitter of the NFL and
has an exclusive deal to supply NBA jerseys beginning the season
The Action group is one of the India's leading business conglomerates. The
group commenced its operations as a source of footwear and its
components in domestic and export markets, gradually moving its core
other diversified fields such as: (API) Chemicals and Plasticizers,
(MICROTEK ) Computer Monitors and Peripherals, Power Back
Up/Inverters, (OKAYA) Batteries, (SUN CITY) Housing Projects and (SRI
BALAJI ACTION MEDICAL INSTITUTE) Health Care.
RESEARCH
OBJECTIVES
The research study tends to follow and achieve specific objectives.
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
SAMPLING PLAN:-
SAMPLE SIZE:- 50
SAMPLE
While deciding about the sample of research, it is required from the
Researcher‟s point to pay attention to these under mentioned points:
a) Sample Units: A decision has to be taken concerning a sampling
unit before selecting a sample, sampling unit may be a geographical
one such as state, district, village etc. so in this research sampling
unit is Ludhiana area.
b) Source of Data: Data required for the study was collected through
primary sources i.e. market survey.
INSTRUMENTS USED
Primary data collected through sample survey from the selected elements
in malls and super markets. So for this purpose I have most popular tool of
primary data collection through direct communication with respondents.
The tools I used are questionnaire.
RESEARCH INSTRUMENTS:
QUESTIONNAIRE DESIGN:
As the questionnaire is self administered one, the survey is kept simple and
user friendly. Words used in questionnaire are readily understandable to all
respondent.
I have made the questionnaire in which questions are according to the
research and these are convenience for the respondent.
CHAPTER-4
LIMITATIONS
LIMITATIONS OF THE STUDY
Some people were not willing to respond and few of them who
responded were in hurry hence the active participation was lacking.
Due to which I faced difficulties in collecting information‟s regarding
our questionnaire.
Another problem which I face was that people were hesitating to give
information about their views freely.
CHAPTER-5
COMPANY
PROFILE
Adidas
INTRODUCTION
Adidas was formed by German sports apparel by the founder Adi Dassler
during the 1920‟s. “For over 80 years, Adidas has been part of the world of
sports on every level, delivering state-of-the-art sports
footwear, apparel and accessories. Today, Adidas is
a global leader not only in the shoe industry, but also
in the sporting goods industry. Shoes from the Adidas
are available in virtually every country of the world. .
Besides sports footwear, the company also produces
other products such as bags, shirts, watches,
eyewear and other sports and clothing-related
goods. The company is the largest sportswear
manufacturer in Europe and the second biggest sportswear manufacturer
in the world, after its American rival Nike.
The company‟s clothing and shoe design typically involve three parallel
stripes of the same color and the same motive is incorporated into Adidas
‟official logos.
The strength of Adidas was its product innovation. Adi Dassler registered
more than seven hundred patents. Adidas began selling its shoes in the
United States after 1968 and in few years the company dominated the
American market. The most important marketing breakthrough was the
active promotion of global sporting events, especially the Olympics. The
connection of Adidas to the Olympics has a rich heritage. At the 1972
Olympic game in Munich, every official wore Adidas.
ENHANCEMENT
In the 1980s, Adidas sneakers became popular amongst teenagers
and young men. The Adidas sneaker was popularized by the RUN
DMC song “My Adidas” and became a huge fashion trend.
After a period of serious trouble following the death of Adolf
Dasseler‟s son Horst Dasseler in 1987, the company was bough t in
1990 by Bernard Tapie for 1.6 billion French Frances ($320million),
which Tapie borrowed. Tapie was at the time a famous specialist
rescuing bankrupt companies, a business on which he built his
fortune.
Adidas has introduced in India, a wide range of sportswear for both men
and women. These include apparel for athletics, basketball, cricket, golf,
running, soccer, swimming, tennis and training for Men and women.
BRAND VALUE AND STRATEGY OF ADIDAS:
The brand value of Adidas Ag, the leading leisure wear, sports footwear
and equipment producer across the globe is currently almost 2748 million
dollars.
The company's brand name is Adidas and it is displayed with a trefoil logo.
This logo, a very popular one, is a signature of Adidas' brand. It had been
launched in 1972.
The new Adidas logo, three stripes running across its several products,
was introduced in 1991.
In 2006, Adidas acquired the Reebok brand for 3.8 million dollars.
ADIDAS
Type Public
Founded 1949
Industry Textile
Products Footwear
Accessories
REEBOK
INTODUCTION
Reebok is the world‟s third-largest maker of sneakers, athletic shoes
and sports apparels. Good are sold under the brands
Reebok, Rockport, and Greg Norman Collection.
Reebok is also the official Outfitter of the NFL and has an exclusive deal to
supply NBA jerseys beginning this season.
Adidas will maintain its corporate headquarters in Germany and its North
American headquarters in Portland, OR. Paul Fireman will remain as Chief
Executive officer of Reebok international Ltd. And will continue to operate
under its name and will retain its headquarters in canton, MA.
In fiscal 2004, Reebok had net income of $192.4 million and sales of $3.7
billion.
HISTORY:
Reebok‟s origins go back to 1895 when Joseph
William Foster made running shoes with spikes in them. He formed a
company called J.W.Foster and sons which made shoes for athletes in the
1924 summer Olympics.
In 1958, two of the founder‟s grandsons started a companion company that
came to be known as Reebok, named for an African gazelle.
In 1979, Paul Fireman, a partner in an outdoor sporting goods
distributorship, spotted Reebok shoes at an international trade show. He
negotiated for the North American distribution license and introduced three
running shoes in the U.S that year. At $60, they were the most expensive
running shoes on the market.
By 1981, Reebok‟s sales exceed @1.5 million, but a dramatic was planned
for the next year. In 1982, Reebok introduced the first athletic shoe
designed especially for the women; a shoe for a new fitness exercise called
aerobic dance. The shoe was called the freestyle, and with it Reebok
anticipated and encouraged three major trends that transformed the athletic
footwear industry: the aerobic exercise movement, the influx of women into
sports and exercise and the acceptance of well-designed athletic footwear
by adults for street and casual wear.
Reebok went public in 1985.
The Chairman and CEO of Reebok was Paul Fireman. He was the one to
introduce the Freestyle in 1980 he was the founder and innovator of
Reebok. He left his position in 2006 and sold Reebok to Adidas for $3.8
billion. Paul Harrington took his place in April for two years. In March 2008
Uli Becker became CEO of Reebok. He is now responsible for Reebok
brands business around the world, and he reports to the chairman and
CEO of the Adidas group. The top 3 CEO connections are Mr. John Warren
who is the chief financial officer and general manager of sports licensed
division, Mr. Terry R. Pillow senior vice president, and Mr. Rick Paterno
senior Vice President. The top five shareholders are Bardwil Industries Inc,
Dr. Martens Airwair USA, llc, Native Intimates Ltd., Welspun USA, Ins.,
Alpha Mills Corporation. Its headquarters are in Canton, Massachusetts,
U.S.A. its regional offices are in Amsterdam, Montreal, Hong Kong, and
Mexico City.
REEBOK'S VISION
REEBOK’S MISSION
At Reebok, we see the world a little differently and throughout our history
have made our mark when we‟ve had the courage to challenge convention.
Reebok creates products and marketing programs that reflect the brand‟s
unlimited creative potential.
REEBOK'S POSITIONING
Celebrate Individuality in Sport and Life
Reebok understands that people are, above all, unique. Reebok‟s
positioning reflects this; celebrating the distinct qualities that make people
who they are - their unique points of view, their individual style and their
remarkable talents and accomplishments. Reebok celebrates their
individuality, their authenticity and the courage it takes to forge their own
path to greatness. While some may call them crazy or eccentric, Reebok
calls them visionary and original.
REEBOK'S PURPOSE
To Empower Global Youth to Fulfill their Potential
Commitment to Corporate Responsibility is an important legacy and
hallmark of the Reebok brand. For two decades, Human Rights, through
the Reebok Human Rights program, were the primary focus of this effort.
Reebok has expanded on what had been built and created a Global
Corporate Citizenship platform with a purpose for the brand that will help
underprivileged, underserved youth around the world fulfill their potential
and live healthy, active lives.
d) For the 2008–09 season, Reebok created the Reebok Edge 2 uniform
system, for National Hockey League's players. The league adopted the
jersey and now all teams sport the new style for both their home and away
jerseys.
INTODUCTION
Nike is a major publicly traded sportswear and equipment supplier based in
the United States. The company is headquartered near Beaverton, Oregon,
which is part of the Portland metropolitan area. It is the world's leading
supplier of athletic and apparel and a major manufacturer of sports
equipment with revenue in excess of US$18.6 billion in its fiscal year 2008
(ending May 31, 2008). As of 2008, it employed more than 30,000 people
worldwide. Nike and Precision Castparts are the only Fortune
500companies headquartered in the state of Oregon, according to The
Oregonian.
The company's profits grew quickly, and in 1967, BRS opened its first retail
store, located on Pico Boulevard in Santa Monica, California. By 1971, the
relationship between BRS and Onitsuka Tiger was nearing an end. BRS
prepared to launch its own line of footwear, which would bear the newly
designed Swoosh by Carolyn Davidson. The Swoosh was first used by
Nike on June 18, 1971, and was registered with the U.S. Patent and
Trademark Office on January 22, 1974.
The first shoe sold to the public to carry this design was a soccer shoe
named Nike, which was released in the summer of 1971. In February 1972,
BRS introduced its first line of Nike shoes, with the name Nike derived from
the Greek goddess of victory. In 1978, BRS, Inc. officially renamed itself
to Nike, Inc.. Beginning with Ilie Năstase, the first professional athlete to
sign with BRS/Nike, the sponsorship of athletes became a key marketing
tool for the rapidly growing company.
PRODUCT
Nike produces a wide range of sports equipment. Their first products were
track running shoes. They currently also make shoes, jerseys,
shorts, baselayers etc. for a wide range of sports including track and
field, baseball, ice hockey, tennis, association
football (soccer), lacrosse,basketball and cricket. Nike Air Max is a line of
shoes first released by Nike, Inc. in 1987. The most recent additions to their
line are the Nike 6.0, Nike NYX, and Nike SB shoes, designed
for skateboarding. Nike has recently introduced cricket shoes, called Air
Zoom Yorker, designed to be 30% lighter than their competitors'. In 2008,
Nike introduced the Air Jordan XX3, a high-performance basketball shoe
designed with the environment in mind.
Nike has contracted with more than 700 shops around the world and has
offices located in 45 countries outside the United States Most of the
factories are located in Asia, including Indonesia, China, Taiwan, India,
Thailand, Vietnam, Pakistan, Philippines, and Malaysia Nike is hesitant to
disclose information about the contract companies it works with. However,
due to harsh criticism from some organizations like CorpWatch, Nike has
disclosed information about its contract factories in its Corporate
Governance Report.
Sports equipment
Accessories
Website : Nike.com
ACTION
PROFILE OF THE ORGANISATION:
“A relentless race against time.The burning passion to win..A strong desire to set the
trends...
No wonder
, life is all Action...."
What one needs is a partner that's always on the move, that tracks your
Every move, just right and smartly too. And that's exactly the inspiration
behind our trendy footwear collection ranging from performance sport
shoes to semi-formal and formal footwear for men, women, teenagers and
kids. Ultimate in design, comfort, and fit. Action shoes not only look good
but also are good for your feet. Each Action product is the manifestationof
our high standards of workmanship, access to latest technology. That's
how Action issynonymous with maximum quality and performance.... and of
course that essential look.So gets into Action. And feel free to walk on the
rough roads of life. Surely you'll be thewinner.
The Action group is one of the India's leading business conglomerates. The
groupcommenced its operations as a source of footwear and its
components in domestic and export markets, gradually moving its core
other diversified fields such as: (API) Chemicals and Plasticizers,
(MICROTEK ) Computer Monitors and Peripherals, Power Back
Up/Inverters, (OKAYA) Batteries, (SUN CITY) Housing Projects and (SRI
BALAJI ACTION MEDICAL INSTITUTE) Health Care.
There are different individual companies under a common umbrella, each
dedicated to a specific line of product manufacturing, procuring or other
particular business activities.
True to its name Action is always on the move to scale newer heights in
footwear designing and manufacturing. Intensive R& D efforts and the
latest technology go into the making of Action footwear. We have in house
manufacturing facilities, including modern equipments and machineries
specially procured from different countries to manufacture footwear at par
with international class and quality.
Each Action shoe is the product of a relentless quest for quality, high level
of workmanship and a true commitment to customer satisfaction. At Action
we strive to listen to the customers in their local markets and identify their
footwear needs and then provide products that exceed the customer's
expectations in terms of quality, style and value.
Hardly surprising, Action has carved a special niche in the Indian footwear
market and in the hearts of millions of its consumers throughout
the country.
COMPANY’S LOCATION:
Action is headquartered in Delhi, supported by multiple manufacturing and
development units in rest of the states like - Haryana, Himachal Pradesh
and Daman etc. A number of its executives are based in customer
geographies with the express purpose of creating and nurturing channel
partners as well as customers relationship.
STRATEGIC INTENT
VISION
To nurture a financially strong, growth oriented group through leadership
and innovation and to widen future options by entering newly emerging
industries where the potential seems enormous. We as a group shall
continue to seek opportunities where we can leverage our resources.
MISSION
At Action group our mission is to work together, respecting each other, our
skills and knowledge to:-
VALUES
How we accomplish our mission is as important as the mission itself.
Fundamental to the success for the company are these basic values.
Teamwork
MARKET POSITIONING
DATA ANALYSIS
AND
INTERPRETATION
AGE
AGE OF RESPONDENT
54%
%OF RESPONDENT
52%
50%
54%
48%
46% 26-35
46%
44%
15-25
42%
15-25 26-35
AGE
TYPE OF FAMILY
54%
%OF RESPONDENT
52%
50%
54%
48%
46% joint
46% NUCLEAR
44%
42%
NUCLEAR JOINT
TYPE OF FAMILY
MARITAL STATUS
70%
% OF RESPONDENT
60%
62%
50%
40%
30% 38%
20% UNMARRIED
10%
MARRIED
0%
MARRIED UNMARRIED
MARITAL STATUS
For household and individual income is the sum of all the wages, salaries,
profits, interest‟s payments, rents and other forms of earning received in a
given period of time?
FAMILY INCOME
30%
% OF RESPONDENT
25%
20%
15% 26% 30%
20% 24%
10%
5%
0% %OF RESPONDENT
INCOME LEVEL
Type of shoe a customer wants to wear depends upon his choice and
profession.
8%
FORMAL
24% 40%
SPORTS
CASUAL
ANY
28% OYHER
60%
50%
40%
68%
30%
20%
10% 20%
12%
0%
yes no indifferent
Responses
A consumer can buy any product only when he or she aware about the
availability of that product in the market.
24%
NIKE
60%
62% ACTION
48% ADIDAS
76%
REEBOK
ANY OTHER
A customer like only that brand which provide him or her more satisfaction
as compared to other brands available in the market.
35%
30%
25% NIKE
20% 38%
15% 26% ACTION
10% 22%
5% 10% ADIDAS
0% 4%
NIKE ACTION ADIDAS REEBOK ANY REEBOK
OTHER ANY OTHER
Name of brand
45%
40%
purchasing place
% of respondent
35%
30%
25%
20% 40%
15% 34%
10% 18%
5% 8%
0%
D. STORE O.SHOWROOM EX. SHOWROOM ANY OTHER
place
Advertising media
E.SHO
WROO ADVERT
M ISEMEN
18% T
26%
SALESP
ERSON
38% FRIEND
S
18%
60%
50%
40% 72%
30%
20%
28%
10%
0%
YES NO
Responses
Effect of price
80%
%of respondents
yes
60%
no
40% 78%
20%
22%
0%
YES
NO
Responses
30%
25%
20%
36%
15% 28%
10% 24%
5% 8%
0% 4%
Period
Price and quality of the product are the main factors which affect the final
decision of the consumer.
3.5
Factors considering while purchasing
3 3
2.9
2.5 2.6
2.38 2.38
weighted average
2 2.1
1.5
1 WEIGHTED AVERAGE
0.5
Factors
4 4.04
3.8
3.6 3.64
WEIGHTED AVG.
3.4
3.2
Factors
BRAND LOYALTY
42%
YES
58%
NO
SUGGESTIONS
AND
CONCLUSION
FINDINGS, SUGGESTIONS AND CONCLUSION
RESEARCH FINDING:
After assessing the overall market scenarios what came in picture was as
follows:
Consumer reaction suggests that Adidas is the marker leader among
all its close counterparts in the sport shoes and apparel segments.
NIKE is chasing its position most aggressively so now it requires
maintaining its position with new stuff.
ADIDAS has been major competitor for NIKE and REEBOK.
60% Customers are still pro NIKE believer.
The new stuff of the ADIDAS is attracting the consumers more which
might lead ADIDAS at the top spot in the pack in coming financial
year.
Consumers are not showing that kind of craze in ACTION for past
few years.
Probably it could be because of the aggressive attention snatched by
brands like NIKE and ADIDAS especially in India.
Celebrities also affect the sale of brand .ADIDAS shoes promoted by
David Beckham.
72% respondents take their buying decision after considering the
advertisement of brand.
Most of respondents prefer to purchase shoes from exclusive
showrooms.
Businessman, serviceman and professionals prefer to wear formal
shoes because of status and students like to wear only sports and
casual branded shoes.
SUGGESTIONS:
Department stores are the prime sales and marketing channel for
branded shoes. In addition, store decorations and product displays
should be designed to create a strong first impression.
Conclusion
ANNEXURE
QUESTIONNAIRE
PERSONAL PROFILE
I. NAME :
II. AGE :
III. ADDRESS :
IV. TELEPHONE :
V. OCCUPATION :
VI. EDUCATION
Married Unmarried
Any other
10000-15000
15000-20000
Formal Sports
Casual Any Other
Yes No
Indifferent
Nike Adidas
Action Reebok
Any Other
Nike Adidas
Action Reebok
Any Other
5. Up to what extent do you consider following features of
Brand while purchasing?
Price
Quality
Size
Design
Color
Durability
Availability
Brand image
Special offers
Yes No
Brand image
Quality
Size
Comfort
Durability
Any Other
11. Where is any increase in price of this brand, is that
Yes No
Indifferent
12. Would you like to buy another brand if all the attributes
Yes No
Chapter-9
BIBLIOGRAPHY
BIBLIOGRAPHY
BOOKS:
INTERNET:
www.google.com
www.wlkipedia.com
www.paradise.com
NEWSPAPER:
Economic times