A SUMMER TRAINING REPORT

ON

MARKETING STRATEGY OF NIKE AT "NIKESHOES

INDUSTRIES LIMITED"

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF BACHELOR OF BUSINESS
ADMINISTRATION (BBA)

TRAINING SUPERVISOR SUBMITTED BY

SESSION 2005-2008

ACKNOWLEDGEMENT
The present work is an effort to throw some light on Marketing Strategy of
Nike at “Nike Industries Limited”. The work would not have been possible to
come to the present shape without the able guidance, supervision and help
to me by number of people.

With deep sense of gratitude I acknowledge the encouragement and

guidance received by my organizational guide …………..and other staff
members.

I convey my heartful affection to all those people who helped and supported
me during the course, for completion of my Project Report.

……………..

EXECUTIVE SUMMARY
This marketing strategic plan has been written keeping in mind the Indian
operations of Nike Inc. – the global sports shoe giant. It aims first, at
analyzing the sports shoe industry India and finding a place in it for Nike. It
then sets out to describe the target audience for the product range and
finally suggests a host of marketing strategies and activities that will help
Nike to achieve its target of becoming the #1 sports shoe brand in India.

The plan begins with a brief overview of the product category being dealt
with, namely premium quality sports shoes. It also dwells briefly on the
history of the company and its current position and activities.

The project moves on to the crux of the matter – the marketing plan to be
followed by Nike in India. Firstly, the objectives behind this plan and the
core strategy are stated. Customers to be eventually targeted are described
and compared with competitors’ customer targets. After starting the
objectives and reasoning behind them, the actual marketing programs are
described in detail. This includes aspects such as pricing, advertising,
promotion, sales, channels, and the company website. Suggestions are
made on each and every one of these aspects; improvements and
innovations are recommended.

The plan then goes on to the customer analysis section. The customer base
is identified and various segments are pointed out. Various criteria and
factors have been taken into consideration while segmenting the market. We
have also tried to ascertain why customers buy these products, how they
choose, and what factors matter most when making their decisions.
The last few pages of this marketing plan deal with the various ways in
which the plan, once implemented, can be monitored and controlled

TABLE OF CONTENT

1) INTRODUCTION 1-13
a) Background of the problem 1
b) About The Nike Industry 3
c) Nike Maxsight 4
d) Industry Overview 5
e) Product Trend 8

2) RESEARCH METHODOLOGY 14-20

a) Research objectives 14
b) Research design 15
c) Data sources 15
i) Primary data 15
ii) Secondary data 15
d) Questionnaire design formulation 16
e) Sample design 17
f) Limitations of the research 20

3) COMPANY PROFILE 21-43

a) Nike Industries Ltd. – A company profile 21
b) Recent Development 21
c) Future Plan 23
d) Risk and Concern 28
e) Literature Review 31
f) 4ps of Nike 40
g) SWOT Analysis 41

4) DATA ANALYSIS 44-63

5) CONCLUSION & FINDINGS 64-67

6) RECOMMENDATIONS 68-75

a) OTHER SUGGESTION INCLUDE 69

7) ANNEXURE 76-82

8) BIBLIOGRAPHY 83
INTRODUCTION

BACKGROUND OF THE PROBLEM

Since the late 1980s, Business School marketing professor Itamar Simonson
has looked for ways to understand how consumers make choices. Much of
his work debunks the accepted theory that giving consumers what they want
and making a profit are the most basic principles of marketing. Customers
may not know what they want, and second-guessing them can be expensive,
says the professor who teaches MBA and PhD marketing and consumer
decision-making courses. In Simonson’s words, “The benefits and costs of
fitting individual customer preference are more complex and less
deterministic than has been assumed.” That’s because “customer
preferences are often ill-defined and susceptible to various influences, and in
many cases, customers have poor insight into their preferences.” In one of
his recent papers, Simonson tackles the issue of one-to-one marketing and
mass customization. Supporters of these marketing approaches have
suggested that learning what customers want and giving them exactly what
they want will create customer loyalty and an insurmountable barrier to
competition.

In an example taken to the extreme in the 2002 movie Minority Report, Tom
Cruise’s character runs through a shopping mall past talking billboards that
recognize him by name and urge him to buy products he had earlier
expressed an interest in such as jeans and Ray-Bans, the ultimate in
personalized advertising. But Simonson has this to say: “The fact that
consumer preferences are often fuzzy, unstable, and manipulatable is
unlikely to change. So, the effectiveness of methods to give customers
exactly what they (say they) want has been grossly exaggerated.” His take
on the long-held assumption that individual marketing will supplant targeted
marketing is “not so fast.” In studies, he has learned that “even when
customers have well-defined preferences and receive offers that fit those
preferences, it is far from certain that the response to such offers will
consistently be more favorable than those directed at larger market
segments.”

It’s all psychology. Consumers with well-defined preferences may be

skeptical that a marketer could match expectations. Those who don’t know
what they want may not ever see the fit with what the seller wants them to
buy. So, individualized offers depend on customers’ preferences &; how the
offer was extended &; and on trust. “Effective individual marketing requires
not only an understanding of individual preferences and matching offers to
those preferences, but also a thorough familiarity with the various factors
that impact customers’ responses,” Simonson writes. This is a tall order, one
that some companies have been able to fill, at least to some extent. For
example, Amazon keeps track of customers’ purchases and suggests other
books they might like. Dell builds computers from mass-made parts to
customers’ specifications. But Simonson argues some companies can take
the concept too far, like the Custom Foot chain of shoe stores that took
detailed measurements and specifications from each customer to design
one-of-a-kind shoes. Custom Foot didn’t take into account that some
customers were put off by the individualized attention, Simonson says, and
felt obligated to buy the shoes because the store went to so much trouble.
They often didn’t come back. So knowing only the customer preferences is
not enough. It is required to understand other aspects of customer behavior.
Kipping this in mind, present study will find out and analyze consumer
behavior of Nike shoes with reference to ladies segment.

ABOUT THE NIKE INDUSTRY

In sport, visual acuity and protection can mean the difference between
winning and losing. Light conditions have a dramatic effect on how the
human eye perceives and, subsequently how the body reacts and performs -
- in the sun glinting over the upper deck, shallow contrast on a putting
green, or quickly adjusting from shadows to light on a tennis court or
mountain bike single track.
Nike knows that in athletic competition, even small advantages are critical to
performance. Nike has spent the last eight years exploring the human eye to
understand the science of vision in the development of the new Nike
MaxSight Sport-Tint Contact Lens, available August 2005.

WHAT IT IS
Nike MaxSight, developed in partnership with Bausch & Lomb, is a tinted soft
contact lens that behaves like sunglasses, reducing glare and filtering out
95% of UVA and UVB and more than 90% of blue light. But because the lens
rests directly on the eye, there’s virtually no distortion as with standard
sunglasses. Athletes get the same clear view at all angles.

Plus, Nike MaxSight eliminates the environmental effects that plague

sunglasses like fogging, scratching, additional weight, or nosepieces and
frames to obstruct vision. There’s no obstruction from the edge of the lens,
the frame or the nosepiece, because they don’t exist. And there are no
pressure points and no slippage. Max Sight also eliminates light leakage,
reducing the need to squint, allowing the eye to relax and perform more
naturally.

Nike MaxSight is, in effect, one giant visual sweet spot.

Nike Maxsight

HOW THEY WORK

Nike’s patented Nike MaxSight Light Architecture™ selectively alters specific
wavelengths of light within the visual spectrum to enhance key elements in
sport. The athlete gets crisp, clear vision without anything getting in their
way. By removing most of the blue light, contrast and clarity are enhanced
— a decided advantage for any competitor. For sports not conducive to
eyewear, such as golf, tennis and soccer, athletes will see marked
improvement, even on days where the sun’s not at its brightest.

Nike MaxSight provides through-and-through tinting (unlike cosmetically

tinted lenses), so there’s no bending or scattering of light. Plus there’s
limited incidental light or peripheral flickering creeping around the sides, as
with sunglasses. Athletes tested in Nike MaxSight lenses found they squinted
less, were able to relax more, and had exceptional views of contours and
movement.

Marco Materazzi of Italy’s Inter Milan football club and Baltimore Orioles
second baseman Brian Roberts are among the pro athletes wearing Nike
MaxSight. “It has been a lot of fun to start the season this hot,” said Roberts
early in the MLB season. In fact, he became one of the first true fans of Nike
MaxSight after impressive initial results. During a spring daytime game,
Roberts said, “I wore the lenses and went 2 for 4. They are so awesome.”
With Nike MaxSight, there’s minimal squinting in bright light, and quicker
visual definition when going from bright light to shadows.

Wearers will also discover a game-day benefit – the look. “It makes the eye
look distinct, the large-pupil effect,” says Alan Reichow, Nike Vision
Consultant. “It looks competitive.”

ROLL OVER PHOTOS FOR A MAXSIGHT LENSE SIMULATION

THE WEAR
Nike MaxSight is a 30-day lens, though most athletes will wear them
selectively and for short durations. Lenses come in six-pack packaging. Nike
MaxSight is available with or without a correction, thereby making it
accessible to athletes whether they wear contacts or not.
THE HISTORY
Nike began exploring the Nike Max Sight technology in 1997, conducting an
initial clinical project, then subsequent research projects using collegiate
athletes. Oregon’s Pacific University baseball players were the first athletes
to undergo testing. Coach Greg Bradley requested that he be allowed to try
them before his players. “He’d never worn contacts,” says Dr. Reichow. “He
took two pitches and turned around and said, ‘I’ve never seen a ball that
distinct and clear. Put them on anybody who wants them.’

INDUSTRY OVERVIEW
Bill Bowerman said this couple of decades ago. The guy was right. It defines
how he viewed the world, and it defines how Nike pursues its destiny. Ours
is a language of sports, a universally understood lexicon of passion and
competition. A lot has happened at Nike in the 30 years since we entered
the industry, most of it good, some of it downright embarrassing. But
through it all, we remain totally focused on creating performance
opportunities for everyone who would benefit, and offering empowering
messages for everyone who would listen.

We feel lucky to have a genuine, altruistic reason to be: the service of

human potential. That's the great benefit of sports, and we're glad to be in
the middle of it.
What started with a handshake between two running geeks in sleepy
Eugene, Oregon, are now the world's most competitive sports and Fitness
Company. The World Headquarters is in Beaverton, Oregon. The Pacific
Northwest is Nike's hometown, but like so many ambitious souls, we have
expanded our horizons to every corner of the world. Nike employs around
23,000 people, and every one of them is significant to our mission of
bringing inspiration and innovation to every athlete in the world.
Along the way Nike joined up with some great partner companies that help
extend our reach within and beyond sports.

Cole Haan offers casual luxury footwear and accessories out of New York
City and Yarmouth, Maine.

Bauer Nike Hockey, based in Montreal, Quebec, is the world's leading

manufacturer of hockey equipment and a wholly owned subsidiary of Nike,
Inc.

Nike partnered with Hurley International, a premium teen lifestyle brand

founded by 20-year industry veteran Bob Hurley based in Costa Mesa,
California.

In 2003, Nike completed the acquisition of Converse, the globally recognized

footwear brand with nearly a century of sports heritage, and home of the
perennially popular Chuck Taylor All-Star and Jack Purcell footwear.

Exeter Brands Group: In August 2004, Nike created the Exeter Brands
Group, a wholly owned subsidiary, dedicated to building athletic footwear
and apparel brands for the value retail channel. This portfolio of brands
includes the Official Starter Properties LLC and Official Starter LLC which are
the sole owners and licensors of the Starter, Team Starter and Asphalt brand
names as well as master licensee of the Shaq and Dunkman brands, a line of
athletic apparel, footwear and accessory products for the value retail
channel.

Separate business units within the Nike brand include The Jordan/Jumpman
23 brand and Nike Golf.

As small as we feel, the Nike family is a fairly vast enterprise. We operate on

six continents. Our suppliers, shippers, retailers and service providers
employ close to 1 million people. The diversity inherent in such size is
helping Nike evolve its role as a global company. We see a bigger picture
today than when we started, one that includes building sustainable business
with sound labor practices. We retain the zeal of youth yet act on our
responsibilities as a global corporate citizen.

If you have a body, you are an athlete. And as long as there are athletes,
there will be Nike.

PRODUCT TREND
Bovine skin was by far the most preferred leather material, followed by
goat/kid/lamb/sheep skin and crocodile skin.

Respondents overwhelmingly preferred the color black and, to a lesser

extent, dark brown. For handbags/briefcases, popular colors included light
brown, white and red. Consumer Segments with the Biggest Spending Power
Male professionals, managers and executives are the segment with the
biggest spending power for now and in the coming three years. Other major
consumer segments include male office workers; sole proprietors/business
owners; female office workers; and female professionals, managers and
executives.

The Competitiveness of Hong Kong Brands/Suppliers of Leather Consumer

Goods. Most retailers consider Hong Kong brands to be either very
competitive or quite competitive in both high-end and mid-range segments,
but less competitive in the low-end segment. The competitiveness of Hong
Kong brands mainly rests on their product style/design and quality, with
most respondents picking those as the major reasons behind the
attractiveness of Hong Kong brands in the high-end and mid-range
segments respectively.

PRODUCT PROFILE
Apart from delivering a pair of comfortable sports shoes Nike also provides a
number of value-added features with its products. The features that are a
part of every Nike sports shoe are as follows.

High Performance Sports Shoes: Nike has patented the “Air” system and has
made it into a regular feature in most of its models. Many models feature an
air pocket in the shoe that reduces the weight of the shoe and reduces
pressure on the heels. Besides the overall design and compactness of the
shoes have made it a favorite of many professional athletes around the
world.

Comfort: Nike shoes are renowned all over the world for the comfort they
provide. Well padded and cushioned, they provide a tremendous level of
comfort to the wearer and reduce the strain to his feet while playing.

Lightweight: This attribute is in line with the two described above. A

lightweight shoe provides greater mobility and eases the pressure on the
feet of the wearer.

Durability: People purchasing a pair of shoes at such a high price often feel
that they have made an investment. They would obviously want to see their
shoes last a long time. To prove this point we draw the example of the
authors of this marketing plan. All of us own a pair of Nike’s and have been
wearing them for well over two years – a symbol of the durability of Nike
shoes.

Style: Nike’s designs are considered to be the most stylish in the industry
and beat all others as far as looks are concerned. Attractively packaged, it is
a delight to bring a pair home. Add to this the “Swoosh” – the most
recognizable symbol in sports and you have a product that would give the
user a definite sense of pride.

Nike shoes also come with a guarantee card that enables the owner to
return it in case of manufacturing defects. However, owing to the fact that
the company implements strict quality control measures, coming across a
defective pair in a store are a rarity. The most recent additions to their line
are the Nike 6.0 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'.[ Nike positions its products in such a
way as to try to appeal to a "youthful....materialistic crowd".[5] It is
positioned as a premium performance brand.

NIKE 6.O

NIKE SB
RESEARCH METHODOLOGY

Research comprise defining and redefining problems, formulating hypothesis

or suggested solutions; collecting, organizing and evaluating data; making
deductions and reaching conclusions; and at last carefully testing the
conclusions to determine whether they fit the formulating Hypothesis.
In short, the search for Knowledge through Objective and Systematic
method of finding solutions to a problem is Research.

RESEARCH OBJECTIVES
 To study the tastes, preferences, and buying behavior of consumers in
case of footwear of Bata.
 To analyze buying behavior of ladies segment of consumers.
 To recommend strategies to Nike to increase sales in ladies segment.

The main objectives of this study are:

 Working of Insurance Plans
 SWOT analysis of the product sold
 Comparative study with the competitors

RESEARCH DESIGN

TYPE OF RESEARCH: -
Descriptive research
Descriptive research includes Surveys and fact-finding enquiries of different
kinds. The main characteristic of this method is that the researcher has no
control over the variables; he can only report what has happened or what is
happening.

DATA SOURCES
There are two types of data.
Source of primary data for the present study is collected through
questionnaire and answered by consumers of Nike shoes. The secondary
data is collected from journals, books and through Internet search.

PRIMARY DATA
The data that is collected first hand by someone specifically for the purpose
of facilitating the study is known as primary data. So in this research the
data is collected from respondents through questionnaire.

SECONDARY DATA
For the company information I had used secondary data like brochures, web
site of the company etc.
The Method used by me is Survey Method as the research done is
Descriptive Research.

RESEARCH INSTRUMENTS
Selected instrument for Data Collection for Survey is Questionnaire.

QUESTIONNAIRE DESIGN FORMULATION

Under this method, list of questions pertaining to the survey are prepared
for marketing staff of consumers of Nike shoes.
Questionnaire has structured type questions as well as unstructured type
questions. Structured objective type questions are prepared for the
respondents with fixed response categories. Some of the questions are of
multiple-choice type. The questions have more than one alternative.

Questionnaire: - A questionnaire consists of a set of questions presented to

respondent for their answers. It can be Closed Ended or Open Ended

Open Ended: - Allows respondents to answer in their own words & are
difficult to Interpret and Tabulate.

Close Ended: - Pre-specify all the possible answers & are easy to Interpret
and Tabulate.

TYPES OF QUESTION INCLUDED:

DICHOTOMOUS QUESTIONS
Which has only two answers “Yes” or “No”?

MULTIPLE CHOICE QUESTIONS

Where respondent is offered more than two choices.

IMPORTANCE SCALE
A scale that rates the importance of some attribute.

RATING SCALE
A scale that rates some attribute from “highly satisfied ” to “highly
unsatisfied “ and “very inefficient” to “very efficient”

SAMPLING UNIT: -
Who is to be surveyed? The marketing researcher must define the target
population that will be sampled.

The sample Unit taken by me; General public of different age group,
different gender and different profession
EXTENT:-
Where the survey should be carried out?
I have covered entire residential area of Delhi city for the survey

TIME FRAME:-
When the survey should be conducted?
I conducted my survey for 8weeks from 10th may to 10th July

SAMPLING FRAME:-
The source from which the sample is drawn

SAMPLING TECHNIQUE: -
How should the respondent be chosen?
In the Project sampling is done on basis of Probability sampling. Among the
probability sampling design the sampling design chosen is stratified random
sampling.
Because in this survey I had stratified the sample in different age group,
different gender and different profession

SAMPLE SIZE
Consumers of shoes, 50 nos

STEPS FOLLOWED IN COMPLETING THE STUDY

(i) Libraries at (a) Indian Council for Applied Economic Research (ICAER),
(b) Indian Institute of Technology, (IIT) Delhi, (c) Council of scientific and
industrial Research (CSIR) (d) PHD chamber of commerce, are visited.
Management / marketing books, journals are consulted.
(ii) Internet sites containing information on Nike shoes & marketing are
browsed.
(iii) Sample survey was conducted.
(iv) Data was thoroughly checked for error.

DATA PROCESSING METHODOLOGY

(i) Once the primary data have been collected, they are (I) edited –
inspected, corrected and modified.
(ii) Tabulation – bring similar data together and totaling them in meaningful
categories.
Questionnaires are edited both in the field and later in home. Field editing
took place just often the interview. Generally editing is required for open
type of questions. Brief notes or symbols are frequently used during the
interview to initially record the interviewer’s response since it was not
desirable to interrupt the flow with lengthy note taking. Then immediately
after the interview, brief notes are respondent. The responses are
thoroughly checked in home for incorrect, inconsequential or contradictions
categories are developed only often the replies has been reviewed. This
review provided a feel for the pattern of answers and thus determine what
categories best represent the answers.

The collected data are placed into an order. Percentages of respondents

answered similarly are calculated and placed in a table. Then this is
interpreted. This involved drawing conclusion from the gathered data.
Interpretation changes the new information immerging from the analysis
into information that is pertinent or relevant to the study.

CONCLUSION WAS DRAWN BASED ON THE SURVEY FINDINGS

Finally recommendation was made to improve the sales strategy of Nike
shoes to increase the sales volume in ladies segment.

SAMPLE DESIGN
THE BASIS OF SAMPLING: -
Consumers of Nike shoes are chosen randomly, so that unbiased,
representative sample may be obtained.

LIMITATIONS OF RESEARCH

The geographical area was very much limited to residential area & so the
results are not particularly reflection of the current behavior.

BIASES AND NON-COOPERATION OF THE RESPONDENTS.

 The collected data are placed into an order. Percentages of respondents
answered similarly are calculated and placed in a table. Then this is
interpreted. This involved drawing conclusion from the gathered data.
Interpretation changes the new information immerging from the analysis
into information that is pertinent or relevant to the study.
 Due to limited time period and constrained working hours for most of the
respondents, the answers at times were vague enough to be ignored.
 Most of the people in India take their Nike Shoes in the period preceding
March & so the response to initial contacts were not all encouraging and that
has been the primary reason in the inability to quantify the results large
enough so as to deduce any relevant outcomes.

COMPANY PROFILE

NIKE INDUSTRIES LTD. – A COMPANY PROFILE

Nike India Ltd (BIL) is India‘s largest footwear company. Nike first
established itself in India in 1931 and commenced manufacturing shoes in
Batanagar in 1936. The company has its Headquarters in Kolkata and
manufactures over 33 million pairs per year in five plants located in
Batanagar (West Bengal), Faridabad (Haryana), Bangalore (Karnataka),
Patna (Bihar), Hosur (Tamil Nadu). It secures its leather supply from two
tanneries in Mokamehghat (Bihar) and Batanagar (West Bengal). It has a
distribution network of over 1,500 retail stores and 27 wholesale depots
provide excellent access to consumers and wholesale customers throughout
India.
As on December 31, 2006, the Canadian parent had a 51 per cent stake
while institutional holding was about 13 per cent.

RECENT DEVELOPMENTS
Nike India has said that it’s Faridabad and Mokamehghat units are being
taken over by Fashion Shoe Private Ltd and BDCL Enterprises Pvt Ltd,
respectively. The company is also enabling the buy back provision in its
Articles of association to enable buy back of shares.

The assets and liabilities of both the units will be transferred to these
companies and shares will be offered in the agreed ratio to the existing
shareholders of Nike India Ltd on a record date, which will be fixed by the
Calcutta High Court.

While retail sales have increased both in value and volume, wholesale sales
have declined due to restriction of supplies as a means to recover
customers‘outstanding. General recession and sluggish market conditions in
the industry also have had a direct impact on lower sales and profitability.
Resistance of consumers to price rises in popular volume products as well as
discounts to clear slow-moving stocks and under utilization of production
capacity adversely affected the operational results. The lockout declared at
the Peenya factory on October 1, 2007 due to serious industrial relation
problems and non-compliance with the tripartite settlement has been
withdrawn. The footwear manufactured in this factory, which was shifted to
the company‘s other factories and associated manufacturers, will now be
gradually produced within the factory. The commencement of production
from this factory will help in re-cooping the minimal loss being suffered by
the company from this lockout.

In Simonson’s words, “The benefits and costs of fitting individual customer

preference are more complex and less deterministic than has been
assumed.” That’s because “customer preferences are often ill-defined and
susceptible to various influences, and in many cases, customers have poor
insight into their preferences.” In one of his recent papers, Simonson tackles
the issue of one-to-one marketing and mass customization. Supporters of
these marketing approaches have suggested that learning what customers
want and giving them exactly what they want will create customer loyalty
and an insurmountable barrier to competition.
But Simonson has this to say: “The fact that consumer preferences are often
fuzzy, unstable, and manipulatable is unlikely to change. So, the
effectiveness of methods to give customers exactly what they (say they)
want has been grossly exaggerated.” His take on the long-held assumption
that individual marketing will supplant targeted marketing is “not so fast.” In
studies, he has learned that “even when customers have well-defined
preferences and receive offers that fit those preferences, it is far from
certain that the response to such offers will consistently be more favorable
than those directed at larger market segments.”

It’s all psychology. Consumers with well-defined preferences may be

skeptical that a marketer could match expectations. Those who don’t know
what they want may not ever see the fit with what the seller wants them to
buy. So, individualized offers depend on customers’ preferences &; how the
offer was extended &; and on trust. “Effective individual marketing requires
not only an understanding of individual preferences and matching offers to
those preferences, but also a thorough familiarity with the various factors
that impact customers’ responses,” Simonson writes. This is a tall order, one
that some companies have been able to fill, at least to some extent. For
example, Amazon keeps track of customers’ purchases and suggests other
books they might like. Dell builds computers from mass-made parts to
customers’ specifications. But Simonson argues some companies can take
the concept too far, like the Custom Foot chain of shoe stores that took
detailed measurements and specifications from each customer to design
one-of-a-kind shoes. Custom Foot didn’t take into account that some
customers were put off by the individualized attention, Simonson says, and
felt obligated to buy the shoes because the store went to so much trouble.
They often didn’t come back. So knowing only the customer preferences is
not enough. It is required to understand other aspects of customer behavior.
Kipping this in mind, present study will find out and analyze consumer
behavior of Nike shoes with reference to ladies segment.

FUTURE PLAN
The management says that it is not averse to outsourcing if it worked out
cheaper. It is also open to the idea of importing shoes - mostly from China -
if it works out cheaper.
Nike and Reebok India Company have announced an agreement to foray into
retailing partnership for sale of Reebok and Rockport footwear in Nike
outlets. The partnership entails retailing a range of sports shoes for walking,
running, tennis and training for personal fitness and sports ranging between
Rs 900-2,500.

An attractive valuation compared to its peers is the main trigger for the
scrip. Besides, the company’s aggressive focus on retailing and revamping of
business (a division into shoes and apparels) is also helping sentiment for
the scrip. Plans are afoot to start selling apparel in India made by the joint
venture North Star. There’s talk that the company is planning on a voluntary
retirement scheme (VRS) to cut costs.

For the third quarter ended 30 September 2007, Nike India reduced its
losses to Rs 5.68 crore (Rs 8.51 crore) on a 9.2% increase in net profit to Rs
154.27 crore (Rs 141.26 crore). Despite reducing its losses for the quarter,
Nike India has, over the last few quarters, been continuously recording weak
performances as a result of an overall slowdown in the industry due to lower
consumer spending. Increasing domestic competition, particularly from the
unorganized sector, has also been eroding into the company’s market
share.
The company is finding it difficult to maintain its market share in a highly
price-sensitive Indian market, despite having strong brand recall.

97% of the company’s revenues are from the domestic market while the
remainder is from exports. Nike India is the biggest player in the Indian
shoe market.

Nike India’s major problems include its high cost of production and low
emphasis on marketing. The company may be able to address the first
problem through outsourcing products. Bata’s brand image has been
restricted to that of a company that emphasizes on utilitarian products more
than trendy ones. Customers feel the company is lacking in innovation.
Hence, their preference has shifted to other local brands.

Nike India has a large marketing network with over 1,500 showrooms, 27
wholesale depots and eight retail distribution centers across the country.

Besides, there is a network of 300 exclusive wholesalers servicing 25,000

dealers all over the country. However, in spite of this and the license to sell
other brands like Nike, Hush Puppies and Lotto, Nike has not been able to
improve sales consistently. The recent rise in sales during the third quarter
ended September 2006 can be attributed to the festive season. Recently, it
also entered into a retailing tie-up for Lee Cooper shoes.

Nike India has also been trying to focus on aggressive marketing of its
product. The company has been going through a period of transition for the
past one year. With the expansion of the retail industry in New Delhi and
Mumbai, the company has recently decided to shift its marketing operations
to Delhi in order to provide value shopping for its customers. However, the
manufacturing activity and the registered office will continue at Kolkata.

Nike India has plans to invest in sophisticated machinery to retain its niche
place in manufacturing. The company has put a fresh focus to its retail
business. The company has decided to cleanse its wholesale operation by
building relationships with credit-worthy buyers.
It is to the company’s credit that it has lately overhauled its marketing set-
up into a four-tier retail structure that will be stocked with products
matching the area’s customer profile. A Nike outlet in an up market place
will offer a distinctly different range of footwear from another in the
suburbs.

At the top of the four-tier structure will be international stores stocking

brands like Nike and Reebok. Next will be city stores, located in up market
areas and catering to middle and high-income groups. The company has
identified the brands Power, North Star, Bubble gummers, Marie Claire and
Hush Puppies for the top end of the market. Third in line will be family stores
at commercial locations displaying basic and mid-range footwear. At the
bottom will be bazaar stores that will basically aim at driving volume sales at
lower price points.

The management of Nike India is taking major steps in terms of improving

market penetration, focus on stores configuration, distribution logistics,
better industrial relations and overhead rationalization. Launching of new
products always remained at the center stage of the company’s operations.

At the same time, with the opening up of the economy, more and more
goods will be imported from China. This may significantly affect Nike India’s
prospects unless it manages to wean away customers with a drastic cut in
costs. Alternatively, like other Indian manufacturers, even Nike may
consider relocating its manufacturing bases in China. However, it is not that
easy a task to undertake.

Nike India, the 51% subsidiary of Toronto-based Nike Shoe Organization,

remains the biggest player in the Indian shoe market, though its share in
footfalls has been decreasing over the years.

Now in a determined bid to straddle across all product and price points, Nike
India has decided to restructure its 1,300-outlet strong retail business
division along specific customer segments into Bazaar, Family, and City and
Flagship stores.

Nike India has decided to appoint brand managers for each product group in
a newfound aggression to tackle dwindling sales. Each of these managers
assisted by a dedicated team would be like a brand champion responsible for
procurement, production, advertisement, promotion and re-supply.

Nike India has roped in Ogilvy & Mother for devising its festive season
advertising, side-stepping JWT, its incumbent agency. The job involves
developing special communication directed towards the festival season
shoppers.
Nike India Ltd (BIL) is India’s largest footwear company selling over 60 Mn
pairs per year in India, USA, UK, Europe, Middle East and Far East. BIL has a
market share of 60% in leather products and 70% in canvas shoes.

The footwear industry in India is highly fragmented and dominated by the

unorganized sector. The industry size is around Rs 75 Bn and is growing at
around 10% annually. It competes with Indian players such as Liberty
Shoes, Phoenix International, Mirza Tanners, Tatas, Action Shoes and
Lakhani Shoes and global players like Adidas, Reebok and Nike. Accessories
and garments contribute footwear sales account for more than 96% of sales
while the balance. The turnover break up is as follows –
 Products Volume (%) Value (%)
 Rubber and Canvas 50: 30
 Leather 29 :57
 Plastic 21: 9

GROWTH DRIVERS
The company has a very comprehensive distribution network which
comprises its own and franchise stores. It has 1500 showrooms, 25
wholesale depots and 8 distribution centers.

POPULAR BRANDS
Nike owns brands like Hush Puppies, Signor, Marie Claire Power, Sandak,
Hawai, Naughty boy and Ambassador. It also distributes other brands such
as Nike and Lotto.
Focus on middle-class and upper class Nike will continue to focus on middle
and upper class customers. It is introducing ‘budget stores’ which will help
customers to identify with the brand. It is also increasing focus on rural
thrust for volume growth in the low-priced footwear segment.

RISK AND CONCERN

Lifting of quantitative restriction on import of footwear will lead to the
market being flooded by imports. Labor issues have always bothered BIL
and this resulted in disruption of manufacturing activities on numerous
occasions. Competition is hotting up in the domestic market due to popular
brands such as Gaitonde, Red Tape, Lotus Bawa and Tatas. These brands
are gaining market share especially in the premium segment and in this
segment BIL has no significant presence.

Latest Results Sales for Q3 FY2000 increased by 5.5% yoy to Rs1.7bn.

profits dropped by 90% yoy to Rs3.8 Mn due to lower operating margins and
higher depreciation and interest. Depreciation increased by 6.3% yoy to Rs
37 Mn while interest cost increased by 9.3% yoy to Rs 23.4 Mn.
Operating margins dropped by 3.3% due to increase in input cost. The
Peenya plant has not commenced operations despite lifting up of the lock out
since July 3, 2007.

VALUATION
BIL’s long-term success is dependent on the how labour issue is tackled and
the flexibility, which it can adopt to meet threat of imports and competition
from local footwear companies. Long term investors with a two-year
investment horizon can accumulate the stock at current levels. It is also
increasing focus on rural thrust for volume growth in the low-priced footwear
segment.

Lifting of quantitative restriction on import of footwear will lead to the

market being flooded by imports.

Labor issues have always bothered BIL and this resulted in disruption of
manufacturing activities on numerous occasions.

Competition is hotting up in the domestic market due to popular brands such

as Gaitonde, Red Tape, Lotus Bawa and Tatas. These brands are gaining
market share especially in the premium segment and in this segment BIL
has no significant presence.

Sales for Q1 CY2001 decreased marginally by 0.6% yoy to Rs 1590.7 mn.

There was a net loss of Rs 30.2 mn as against a profit of Rs 39.6 mn in the
corresponding period of the previous year. The loss is due to lower operating
margins and higher interest.
BIL’s long-term success is dependent on the labor issue and the flexibility,
which it can adopt to meet threat of imports and competition from local
footwear companies. Long term investors with a two-year investment
horizon can accumulate the stock at current levels.

FINANCIAL HIGHLIGHTS
(In Rs Million) 200012 (12) 199912 (12) 199812 (12) Q1200103
Q1200003
Sales 7,315.70 7,103.90 6,353.20 1590.7 1600.9
% Growth 2.98 11.82 (0.6)

Net Profit 304.60 242.60 166.30 (30.2) 39.6

% Growth 25.56 45.88 (176)
EPS(Rs) 5.90 4.70 3.20 3.08
% Growth 25.53 46.88

Ratios 200012 (12) 199912 (12) 199812 (12) Q300009 Q399909

OPM(%) 9.77 9.08 7.16 1.09 6.9
NPM(%) 4.16 3.42 2.62 2.5
ROE(%) 8.95 7.44 5.31
Nike understated 9 month losses -
Brief Financials (in Rs. Mn.)Detailed Quarterly
Period ending (months)30-Sep-2007 (9)31-Dec-2006
(12)31-Dec-2006 (12)
Net sales 4980.206461.177172.91
Other Income42.1063.6165.21
Total Income5022.306524.777238.12
Cost of goods sold4974.706471.797051.76
OPBDIT47.6052.98186.36
PAT-117.20-74.1039.80
Gross Block-2191.072062.26
Equity capital-514.22514.22
EPS (Rs.)--1.440.77
DPS (Rs.)-0.000.75
BV (Rs.)-37.2738.71
P/E range (x)-0.0 - 0.00.0 - 0.0
Debt / Equity (x)-0.320.26
Operating margin (% of OI) 0.90.82.6
Net margin (% of OI)-2.3-1.10.5
As on 30 June 2007, the public, institutions and foreign bodies held
31.23%, 13.91% and 0.16% stake in the company, respectively

LITERATURE REVIEW
The study of consumer behavior has evolved since the Information
Processing Model (Bettman, 1979) assumed that the individual is logical in
his/her buying process. This model was criticized because it failed to treat
different consumption phenomena motivated by symbolic meanings
(Holbrook and Hirschman, 1982). Individuals are not always looking for
efficiency and economy, but also for distraction, aesthetic, expression, etc.
(Boyd and Levy, 1963). Calling for a broadening of theoretical frameworks of
consumer behavior, many authors pleaded in favor of the study of all
consumption forms (Holbrook, 1986), being inspired by European semi logy
and American semiotic (Levy, 1959, 1963, 1981; Hirschman, 1980; Kehret-
Ward, Johnson and Louie, 1985; Mick, 1986; Holbrook, 1986;
O’Shaughnessy and Holbrook, 1988; Nöth, 1988; Stern, 1988; Grafton-
Small and Linstead, 1989). These are the study of signs, meanings and
production of symbols. Fantasy, emotion and pleasant aspects of
consumption were then tackled from an experiential point of view. The
Experiential View is a phenomenological perspective that perceives
consumption as a primary state of consciousness having a variety of
symbolic meanings, responses and hedonist criteria (Holbrook and
Hirschman, 1982; Olshavsky and Granbois, 1979). The basis of the
traditional Information Processing Model is the optimization of the utility of a
product under the basis of a utilitarian evaluation of its tangible
characteristics. Nevertheless, it neglects emotional aspects. On the other
hand, the Experiential View leaves out different factors such as economic
conditions, expectations, some elements of the marketing mix (price,
distribution), perceived risk and conflicts, but mostly the social influence of
the consumers’ reference groups (Holbrook and Hirschman, 1982; Business
Central Europe, 1994) which is the aim of the Symbolic Interactionism
Perspective. Acquisition, possession and consumption are activities taking
place in a process of impressions creation or identity management which is,
according to Belk (1978), an interactive process concerning both the image
of goods consumed and that of the individuals consuming them. The
Symbolic Interactionism Perspective deals with the relationship between
consumers and the products they consume, and suggests that a significant
proportion of consumption behaviors consist of social behaviors, and vice
versa (Solomon, 1983). This leads us to consider the importance of
socialization processes (family, reference groups) through which individuals
learn the meanings of symbols and those of consumption. With the
aforementioned meanings being negotiated and built through interactions
with others, consumption is not only an individual activity, but also a social
process of goods definition (Gallant and Kleinman, 1983). Since individuals
are often motivated to acquire products according to what they mean to
them and to members of their social reference groups (Leigh and Gabel,
1992), their behavior is subject to the pressures of cultural norms and the
expectations of socialization institutions rules such as those coming from
family and other reference groups (Faber, O’Guinn and McCarthy, 1987;
Engel, Blackwell and Miniard, 1993). Thus, Symbolic Interactionism
Perspective considers the human spirit as fundamentally social, and
dependent on shared symbols. The symbols being generated at a global
level (Geertz, 1973; Solomon, 1983; McCracken, 1986, 1988; Leigh and
Gabel, 1992), the Symbolic Interactionism Perspective accepts as precept
the fact that society and its culture precede every individual action, and that
a cultural consensus results from interactions, communication, and
negotiation between social actors (Charon, 1989).

If, at a conceptual level, the consumption good becomes an instrument of

communication, at an operational level, image variables may be regarded as
the intangible attributes of the product that carry cultural and social
meanings. According to Erickson, Johansson and Chao (1984), an image
variable is defined as “some aspect of the product that is distinct from its
physical characteristics but that is nevertheless identified with the product”.
The image variables emerge from four cognitive representations individuals
have of their environment: the symbolism of advertising, the celebrity
endorsement, the brand, and the country of origin of the product.

The made-in is considered by Dichter (1962) as the fifth element of the

marketing mix, and is defined as the country where are located the
corporate headquarters of the organization doing the marketing of the
product or the brand (Johansson, Douglas and Nonaka, 1985). The country
of origin carries a rhetoric that influences consumers’ preconceptions
towards the products of a country. Its meaning can be conceived as an
indication serving as a basis of evaluation (Bilkey and Nes, 1982), when one
considers a product as a bundle of information. Consequently, according to
Kaynak and Cavusgil (1983), the images of a foreign country that are
formed by consumers are made of cognitive, affective and behavioral
components. The first one represents the perceived characteristics of the
country. The second one concerns the appreciation or not of those
characteristics, and the third one corresponds to the actions about the
country that the consumer feels are appropriate. A tendency to evaluate
positively the local production compared to imported production, and biases
in favor of industrialized countries have been found in previous studies
(Bilkey and Nes, 1982; Cordell, 1992). This does not mean the consumer will
not buy the product, but rather that he is not inclined to do so (Schooler,
1971). “When entering foreign markets, sellers often face quotas, tariffs,
and non-tariff barriers. In addition, they may face an intangible barrier in
the form of consumer bias on the basis of product origin” (Schooler, 1971).

The informational value of the country of origin was also found to vary
according to the level of involvement of the consumer in purchasing the
product and the presence of other cues such as brand name, guarantee and
price (Ahmed and d’Astous, 1993). In a recently published meta-analysis of
country-of-origin effects, Peterson and Jolibert (1995) conclude that the
average effect size is lower (0.19) for purchase intention, higher (0.30) for
quality/reliability perceptions and context dependent. More specifically, they
found that the characteristics of the study (research design, type of
respondents, study cues, sample size, stimulus context etc.) influence the
relative effect of country-of-origin to a lesser degree for quality/reliability
perceptions than for purchase intention. However, the type of respondents
(students, consumers or businesspeople) had no influence on
quality/reliability perceptions.

Stanford GSB marketing professor Itamar Simonson and Ran Kivetz, an

assistant professor at Columbia University, asked a group of 195 Columbia
students to do; eat a lot of sushi.Participants were offered a "frequent diner"
program that would reward them for their patronage at various university
dining locations and given a card that would track their purchases. They
were randomly assigned to one of two groups those in the "low" requirement
group were told they would have to purchase 12 sandwiches to get two free
movie tickets, whereas those in the "high" requirement group were told they
would have to purchase 12 sandwiches and 12 orders of sushi to get two
free movie tickets. So, the second group had to do much more to receive the
same reward. Kivetz and Simonson also asked participants how much they
liked sushi relative to the typical student. The result? Students who liked
sushi were much more likely to join the "frequent diner" program that
required them to purchase both 12 sandwiches and 12 orders of sushi. "It
shows a common mistake that consumers make & if they see an offer that
seems to fit them better than other consumers, for example, a program that
requires sushi-lovers to eat sushi that fit completely colors their assessment
of how attractive the offer is," Simonson says. "As a result, by creating what
appears like personal fit, marketers can attract consumers to frequency
programs and many other promotional offers." Kivetz and Simonson
replicated these findings regarding influences on participation in frequency,
or loyalty, programs in studies with travelers interviewed at domestic
airports.The sushi study is among a number of studies Simonson has been
conducting since the late 1980s about how consumers make choices. Much
of his work debunks the accepted theory that giving consumers what they
want and making a profit are the most basic principles of marketing.

The theme that pervades Simonson's work is that customers may not know
what they want and second-guessing them can be expensive. In his words,
“The benefits and costs of fitting individual customer preference are more
complex and less deterministic than has been assumed." That's because,
Simonson says, "customer preferences are often ill-defined and susceptible
to various influences, and in many cases, customers have poor insight into
their preferences."

In another recent paper, Simonson tackles the issue of one-to-one

marketing and mass customization. Supporters of these marketing
approaches have suggested that learning what customers want and giving
them exactly what they want will create customer loyalty and an
insurmountable barrier to competition. In an example taken to the extreme
in the 2007 movie Minority Report, Tom Cruise's character Anderson runs
through a shopping mall past talking billboards that recognize him by name
and urge him to buy products he has expressed interest in such as jeans and
Ray-Bans; the ultimate in personalized advertising. But Simonson has this to
say: "The fact that consumer preferences are often fuzzy, unstable, and
manipulatable is unlikely to change. So, the effectiveness of methods to give
customers exactly what they (say they) want has been grossly
exaggerated." His take on the long-held assumption that individual
marketing will supplant targeted marketing is "not so fast." That's because
consumers are very difficult to figure out, science fiction and technology
notwithstanding. "Furthermore, even when customers have well-defined
preferences and receive offers that fit those preferences, it is far from
certain that the response to such offers will consistently be more favorable
than those directed at larger market segments."

It's all psychology. Consumers with well-defined preferences may be

skeptical that a marketer could match expectations. Those who don't know
what they want may not ever see the fit with what the seller wants them to
buy. So, individualized offers depend on customers' preferences; how the
offer was extended & and on trust. "Effective individual marketing requires
not only an understanding of individual preferences and matching offers to
those preferences, but also a thorough familiarity with the various factors
that impact customers' responses," he writes.

This is a tall order, one that some companies have been able to fill at least
to some extent. For example, Amazon keeps track of customers’ purchases
and suggests other books they might like. Dell builds computers from mass-
made parts to customers' specifications. But Simonson argues some
companies can take the concept too far, like the Custom Foot chain of shoe
stores that took detailed measurements and specifications from each
customer to design one-of-a-kind shoes. Simonson argues that Custom Foot
didn't take into account that some customers were put off by the
individualized attention and felt obligated to buy the shoes because the store
went to so much trouble. They often didn't come back. Indeed, an Internet
search produces no Website.

Simonson, who has received many prestigious awards for his research on
consumer behavior and marketing, teaches MBA and Ph.D. marketing and
consumer decision-making courses. The loyalty program article is slated for
publication in the Journal of Marketing Research this year.
Online customization gives consumers the opportunity to choose
characteristics they want in a product when they shop for it online. Many
companies are looking at online customization as the future of online
business Janis Crow, Kansas State University marketing instructor,
researched how people make choices on the Internet. She recently studied
consumers in an online environment and their ability to customize several
products - pizza, shoes, and electronic devices.

Crow said that her study posed two questions for respondents: first, how
difficult is it to customize a product, and secondly, how likely is the person to
purchase the product he or she has customized?

All participants in the study chose to customize products. In terms of

customers’ likelihood to purchase, a greater number of customers made
purchase decisions when there are more options to choose, she said.
However, it was slightly more difficult when more features were offered.

She created a website where people could customize products to their

individual preferences and needs. Crow selected three generic products:
pizza, shoes, and a Personal Digital Assistant (PDA). Thirty-one college
students took part in the study.

"Students could customize the three products, and I provided a drop-down

box on the site with attributes to choose from," she explained. Consumers
could click on a drop-down box to customize a product they would want to
purchase, she said. She found that more people relied on the default choices
rather than selecting other choices that were offered. She said, some
research suggests that many people do not want to put a lot of effort into
purchase decisions. "A lot of times, people may not have preferences already
in mind," she said. When consumers have the chance to create preferences,
the question is whether they rely on previous preferences or if they develop
new ones, she said. In the future, Crow says she will be studying strategies
that consumers go through during purchase decisions. "I will be studying
decision processes to develop computer aids that could help the consumer
reach their purchase decision," she said.

Although her current project involves analyzing the consumer behavior of

college students in an online environment, in future projects she plans to
analyze other demographic groups.” Customization will be a key business
opportunity in the future for businesses online or in more typical shopping
environments," Crow said.

She hopes her research will help consumers in making purchase decisions
and help businesses determine products to offer and how to offer them.

Hong Kong companies, including leather consumer goods suppliers, have

shown a growing interest in tapping the mainland consumer market after
China's accession to the World Trade Organization and gradual opening of its
domestic market. For Hong Kong companies targeting this vast market, a
good understanding of the behavior of mainland consumers is necessary in
order to formulate an effective and suitable market strategy.

In view of this, the HKTDC conducted a survey study in four major mainland
cities in February 2007. The study was composed of two interlocking
surveys. The first survey (survey on shoppers) successfully interviewed a
total of 1,000 shoppers of leather consumer goods in four major cities,
namely Beijing (BJ), Chengdu (CD), Guangzhou (GZ) and Shanghai (SH).
The second survey (survey on retailers) interviewed managers/officers-in-
charge of major department stores in these four cities.

The survey study analyses leather consumer goods in terms of consumer

behavior, the competitiveness of Hong Kong brands and the consumer
segments with the greatest biggest spending power. The main survey
findings are as follows:

CONSUMER BEHAVIOR
Shopping locations, Department stores were the most preferred type of
retailers, followed by outlets in shopping malls and chain stores. Product
variety, guaranteed quality, brand choice, price, services and store
environment were cited as the major reasons for visiting a leather consumer
goods store.

SHOPPING TIME
Thirty-eight percent of respondents visited leather consumer goods shops at
least once a month.

Shopping during weekends is common. Other popular shopping occasions

include National Day (1st October), Chinese New Year (January/February),
New Year's Day (January) and Labour Day (1st May).

MARKETING CHANNELS
Promotional activities in shopping malls and department stores are the most
popular promotional and sales activities, followed by discount/price
reduction, TV commercials, discount coupons, promotional stands,
exhibitions, buy-one- (or more) gets-one-free.

PURCHASING POWER
On average, respondents owned 4.2 pairs of shoes, 1.2 pieces of wallets, 1.3
pieces of belts and 1.3 pieces of handbags/briefcases. Over the past 12
months, an average respondent's spending on leather consumer goods was
as follows:
- Shoes: RMB 597 (total) RMB 328 (per pair)
- Wallet: RMB 226 (total) and RMB 193 (per piece)
- Belt: RMB 220 (total) and RMB 194 (per piece)
- Handbag/briefcase: RMB 476 (total) and RMB 359 (per piece)

SELECTION CRITERIA
When choosing leather consumer goods, product quality stood out as the
principal consideration for respondents, followed by product material,
craftsmanship, style/design, price and brand.

POPULAR BRANDS
Most respondents considered brands important.

4PS OF NIKE

Nike’s 4Ps comprised of the following approaches to pricing, distribution,

advertising and promotion, and customer service:

Pricing: Nike’s pricing is designed to be competitive to the other fashion

shoe retailers. The pricing is based on the basis of premium segment as
target customers. Nike as a brand commands high premium.
Place: Nike shoes are distributed to Multi Brand store front and the exclusive
Nike stores across countries. While this necessitates a second trip for the
customer to come and pick up the shoes, it allows Nike to offer a much
wider selection than any of the competition.

Promotion: Location, targeted advertising in the newspaper and strategic

alliances serves as the foundation of Nike advertising and promotion effort.
The athletes and other famous sports personalities are always taken as
brand ambassadors. They form the prime building blocks of their portion
strategy.

Product: The product range of Nike comprise of shoes, sports wear, watches
etc. Its product history began with long distance running shoes in 1963.
(Past 17 years: Air Jordan basketball shoes). Wide range of shoes, apparel
and equipment. For example:
 Nike Oregon Digital Super Watch
 Nike Presto Cee Digital Medium Watch
 Nike Presto Cee Digital Small Watch
 Nike Ron Analog Watch
Nike Triax 10 Regular Watch
 Nike Triax Armored II Analog Super Watch
 Nike Women's Imara Fit Digital Watch

SWOT ANALYSIS

SWOT ANALYSIS NIKE, INC.

STRENGTHS
 Nike is a very competitive organization. Phil Knight (Founder and CEO) is
often quoted as saying that 'Business is war without bullets.' Nike has a
healthy dislike of is competitors. At the Atlanta Olympics, Reebok went to
the expense of sponsoring the games. Nike did not. However Nike sponsored
the top athletes and gained valuable coverage.

 Nike has no factories. It does not tie up cash in buildings and

manufacturing workers. This makes a very lean organization. Nike is strong
at research and development, as is evidenced by its evolving and innovative
product range. They then manufacture wherever they can produce high
quality product at the lowest possible price. If prices rise, and products can
be made more cheaply elsewhere (to the same or better specification), Nike
will move production.

 Nike is a global brand. It is the number one sports brand in the World. Its
famous 'Swoosh' is instantly recognizable, and Phil Knight even has it
tattooed on his ankle.
WEAKNESSES
 The organization does have a diversified range of sports products.
However, the income of the business is still heavily dependent upon its share
of the footwear market. This may leave it vulnerable if for any reason its
market share erodes.

 The retail sector is very price sensitive. Nike does have its own retailer in
Nike Town. However, most of its income is derived from selling into retailers.
Retailers tend to offer a very similar experience to the consumer. Can you
tell one sports retailer from another? So margins tend to get squeezed as
retailers try to pass some of the low price competition pressure onto Nike.
OPPORTUNITIES
 Product development offers Nike many opportunities. The brand is fiercely
defended by its owners whom truly believe that Nike is not a fashion brand.
However, like it or not, consumers that wear Nike product do not always buy
it to participate in sport. Some would argue that in youth culture especially,
Nike is a fashion brand. This creates its own opportunities, since product
could become unfashionable before it wears out i.e. consumers need to
replace shoes.

 There is also the opportunity to develop products such as sport wear,

sunglasses and jewellery. Such high value items do tend to have associated
with them, high profits.

 The business could also be developed internationally, building upon its

strong global brand recognition. There are many markets that have the
disposable income to spend on high value sports goods. For example,
emerging markets such as China and India have a new richer generation of
consumers. There are also global marketing events that can be utilized to
support the brand such as the World Cup (soccer) and The Olympics.

THREATS
 Nike is exposed to the international nature of trade. It buys and sells in
different currencies and so costs and margins are not stable over long
periods of time. Such an exposure could mean that Nike may be
manufacturing and/or selling at a loss. This is an issue that faces all global
brands.

 The market for sports shoes and garments is very competitive. The model
developed by Phil Knight in his Stamford Business School days (high value
branded product manufactured at a low cost) is now commonly used and to
an extent is no longer a basis for sustainable competitive advantage.
Competitors are developing alternative brands to take away Nike's market
share.
 As discussed above in weaknesses, the retail sector is becoming price
competitive. This ultimately means that consumers are shopping around for
a better deal. So if one store charges a price for a pair of sports shoes, the
consumer could go to the store along the street to compare prices for the
exactly the same item, and buy the cheaper of the two. Such consumer price
sensitivity is a potential external threat to Nike.

DATA ANALYSIS

1. Demography of respondents

ANALYSIS:
It was observed that the majority of the respondents consist of professional
from various fields like engineers, software professionals, working executive
etc. who effective form 38% of our database. While 36% were students from
various fields. Others constitute designers and athletes etc. the further study
is carried on the buying behavior of the above mentioned categories of
consumer, which shows that our consumer is well educated and is very well
informed about the product.

2. Consumer’s income level and spending capacity on shoes

ANALYSIS:
In the survey conducted a direct relation between the income level and the
spending capacity was observed. Also it was found that students were
spending in the range of Rs 1000 – Rs 3000 as compared to the working
class professionals who were ready to spend between Rs 3000 – Rs 6000,
since they have higher spending power because of higher income levels.

SHOPPING SEASON
ANALYSIS:
Amongst the student and the professional it was found the consumer buying
BEHAVIOR does not change with respect to the seasons and occasion as
most of the consumer would like to buy their shoes as and when need
arises, whereas the businessman generally do their shoes shopping during
traveling or on special occasion’s.

BRAND RECOLLECTION:

ANALYSIS:
When asked about reconciling a sports shoes brand about 70% of the
respondent were able to recall REEBOK or ADDIDAS were as rest were able
to remember NIKE and FILA brands. This was due to the fact that REEBOK
has brand ambassador like RAHUL DRAVID and YUVRAJ SINGH.

FACTOR INFLUENCING THE BUYING PROCESS:

ANALYSIS:
Among the various factors like social, psychological, personal and cultural
factors it was observed that the consumer give more preference to his
personal choice and psychological factors like 50% of the people consider
comfort and they generally do not consider durability as an important aspect
because they believe that it comes along with the brand. Also the social
factor like style was second most important factor behind the consumer
buying motives.

(B) COMPARISON WITH OTHER BRANDS

ANALYSIS:
In response to the question about giving, out of 100 point to the various
factors affecting their buying BEHAVIOR between NIKE and OTHER’S
following was observed:
OTHERS NIKE
a. Style ____20____ ___30_____
b. Price ____10____ ___10_____
c. Comfort _____30___ ___30_____
d. Brand ____10____ ___20_____
e. Durability _____30___ ___10____

this further shows that the consumer look for style in the NIKE more in
comparison to the other brand hence, gave their 30 points to it whereas 20
in case of other brands it was seen that the comfort remains at equal place
even while choosing a competitive brand.

BUYING FORCES
ANALYSIS:
It was observed that consumer is forced by no factors like peer pressure,
family and friends and some time people would like to buy a product
because it is being endorsed by their favorite celebrity. It was observed that
the beside that personal choice of the respondent, the pressure from the
friends plays an important buying force for the students, while the peer and
college in case of the professional and the least pursuing factor is family
which was seen in case of the respondents belonging to age group 35 years
and above.

NO OF PEOPLE BUYING NIKESHOES & REEBOK SHOES:

ANALYSIS:
This question was asked to know the market capture by the REEBOK and the
time period of association of the customers with REEBOK. It was deduced
that more than 75% of the respondents were using the REEBOK shoes and
were mainly associated with it for a period of 1 year or more. While the
remaining respondents were using either the NIKE or ADDIDAS brand shoes.

CUSTOMER SATISFACTION:
ANALYSIS:
Because of the quality product offered by the REEBOK about 60% of the
respondents were either very satisfied or satisfied, while 10% did not gave
any response as they were not using the REEBOK shoes.

3. Do you ask for a specific brand by name?

90% people say yes to this. and the remaining 10% say no.
4. Which brand do you generally use?

People in India prefer Nike the most as we can see that 24% % people
prefer Nike sports wear. Then comes Adidas and Reebok.

5. Has any sports shoes ad (seen on TV/in a magazine) made an impact on

you?

YES NO IF YES, THEN WHY

NIKE 43 57
ADIDAS 63 37
REEBOK 45 55
ACTION 30 70

Most of the people are influenced with Adidas’s ad, then with Reebok and
then Nike. The most un-influential is that of action.

6. What according to you is the relative importance of the following?

V. Imp Imp. Not so Imp. Doesn’t matter
PRICE 50 28 12 10
DURABILITY 55 45 0 0
BRAND IMAGE 40 20 15 15
COMFORTABLE 54 36 10 0
LOOKS 40 40 15 5

By this we infer that the consumer wants the shoe to be durable that is of
primary importance for them. Then the price is also very important for them.
The shoe should be comfortable. Along with that looks and the brand image
is also important.

7. What features of Nike do you like the most?

The most liked feature of Nike is the light weight shoe. Then it is the
enhanced toe support. From here we can infer that most important aspect
for the consumers is the comfort they get from the shoes.

8. What range you prefer?

Larger number of people goes in for shoes that come under the range of Rs.
1500-3500. A s we know that Nike is a premium brand 27% of the buy
shoes that falls under the range of Rs. 3500-7500 and lesser no. of people
buy shoes ranging in between 3500 and 5500.

9. How often you buy Nike?

62% of the consumers buy Nike only once a year. Here we notice one thing
that some don’t buy Nike.
10. Are you satisfied buying Nike?

The people who buy Nike are fully satisfied buying it, their percentage is
64%. Only 15 % are not satisfied buying it.

11. Do you think Nike serves the purpose of being a good brand, for Sports
wear?

56% of the people agree that Nike serves its purpose for being a sport
brand. Only 27% people don’t agree with it.

12. Will you prefer Nike launching a new range which can serve the purpose
of service class?

67% say yes to the idea of launching a new range for the service class. 36
don’t have any idea of this.
CONCLUSION & FINDINGS

The specific brand objective of Nike India would be to build up its brand
reputation, image and equity. A brand is not simply a collection of products
and benefits, but also a storehouse of value stemming from awareness,
loyalty, and association of quality and brand personality. A brand is a name,
term, sign, symbol or design or a combination of them intended to identify
the goods or services of one seller or group of sellers and to differentiate
from those of competitors. In essence, a brand identifies the seller or maker.
It can convey up to six levels of meaning: Attributes, Benefits, Values,
Culture, Personality and User. If a company treats a brand only as a name it
misses the point. The branding challenge is to develop a deep set of positive
associations for the brand.

Although these six meanings are noticeable in the Nike brand in the west
and other parts of the world, they are yet to be cultivated in India. Nike has
to ensure that their brand is built up on these pillars in India.

The secondary brand objective of Nike India would be to ensure that they
match the market share and sales volumes of its competitors. After all, a
company is in business to make profits and stay ahead of its competitors. A
company, product or brand may have a very good reputation and image, but
if it is not profitable, it does serve its purpose. At the same time sales
figures and data can be misleading. Hence market share has also to be paid
attention to.

Nike despite being one of the most popular brands in the world has not
really caught on in India. Yet, there is reason to believe that Bata’s Power
and Liberty would be ahead of Nike in terms of popularity. We also notice
that Nike is at par with Reebok. This again does not reflect too well on the
brand, considering that Nike outsells Reebok everywhere else in the world.

Hence it is reasonable to state that Nike’s popularity level in India could do

with a boost. The best way to achieve this would be some serious brand
building. The image of the brand has to be improved and people must be
made aware of its presence. Thus, the rationale behind choosing
improvement of brand image and reputation as the company’s primary
objective is quite clear.

Nike’s distinctive competency lies in the area of marketing, particularity in

the area of consumer brand awareness and brand power. On the global scale
this key distinctive competency towers over the competitors. As a result,
Nike’s market share is number-one in the athletic footwear industry in most
places around the world. Catch phrases like, "Just Do It," and symbols like
the Nike "Swoosh," couple with sports icons to serve as instant reminders of
the Nike Empire. It is about time that this competency is leveraged on to
India.

Two key attributes of a distinctive competency are its inability to be easily

replicated and the value or benefit it offers to consumers. Few companies
have such a recognizable image and the resources to promote it. This
ultimately translates into added value for consumers. The public benefits
from the strength of Nike’s image at the point of purchase. For decades,
consumers have come to associate the Nike image with quality products. By
associating star athletes and motivational slogans like, "Just Do It," with
marketing campaigns that emphasize fitness, competition, and
sportsmanship, consumers identify their purchases with the prospect of
achieving greatness. Younger consumers especially benefit from this positive
influence. This image is something that competing companies can not easily
duplicate by simply enhancing the physical characteristics of their products.

Nike’s vision is to remain the leader in the industry. The company will
continue to produce the quality products that have been provided in the
past. Most importantly, Nike will continue to meet the ever-changing needs
of the customers, through product innovation. In the past, the company has
utilized product differentiation as the main competitive strategy. As Nike’s
reputation dictates, it will continue to place emphasis in this area. Nike has
built its business on providing products that rise above all others and this
has made it the worldwide success that it is today.

Nike is known for its technologically advanced products and is the leader in
this area. This allows Nike’s products to stand out from the rest. The
company’s focus also allows it to maintain a somewhat narrow niche that
enables it to effectively capture the needs and wants of the consumers. An
example of Nike’s superior and innovative technology is its new range of
shoes called “Air Presto”. Termed as the first T-shirt for the feet, these shoes
can take the shape and size of the wearer’s feet. Unlike regular shoes it
comes are sizes like XL, L, M, S and XS. Each of these sizes can
accommodate three conventional foot sizes. Nike will continue to produce
such path-breaking products in the future and stay a step ahead of its
competitors.

Nike will also focus on making a strong effort in price leadership. Nike’s
products in the past have been concentrated in the higher end of the pricing
category. An entrance will now be made into lower price categories with
these quality products. This will enable Nike to capture an even greater hold
on market share.

Presently, the only form of customer relationship management activity that

Nike has adopted in India is product warranty. Nike shoes come with a six-
month warranty. If the shoe is found to be defective or wears out within six
months due to no fault of the wearer, Nike replaces the product. This is only
the first step and more needs to be dome in this area.
Being a company that always strives towards excellence, Nike needs to know
exactly what its customers think about their products. A good way of
assessing this would be to have the customer fill in a form at the point of
purchase. The form will ask the customer his / her opinion on the product as
well as the showroom. Suggestions and comments would be welcome.
However, care must be taken to ensure that these forms are not too
cumbersome and do not take up too much of the customer’s time. Surveys
have indicated that normally people don’t mind filling in forms as long as
they are not too long.

Another good method would be to introduce a system of customer points.

Every time a customer makes a purchase, he would earn himself a certain
number of points, depending on the price of the product. After he crosses a
certain point level, he would be entitled to a gift from the company or
choose a product of a certain value from the range. This would be helpful in
building customer loyalty and give them an incentive to make repeat
purchases. A most valued customer database could be created from her e
and various forms of direct marketing could be directed at them. This would
help the company to retain its existing customers.

A third way to improve customer relationship would be to issue gift coupons

and vouchers. People would have the facility to buy these vouchers and
present them to their dear ones. This would be a good way to reach out
towards newer customers through existing ones.

RECOMMENDATIONS

To explore the mainland market, Hong Kong companies should position

themselves in areas in which they are strong. From the viewpoint of
mainland consumers, Hong Kong's leather consumer goods are considered
competitive in the high-end and mid-range. Mainland consumers are brand
conscious, and it is vital to promote own brands which have clear image.

This survey also shows that Hong Kong products are preferred for their
design/style and quality. Bearing these in mind, Hong Kong companies
should never compromise on quality, and they should allocate more
resources to product design, selection of material and craftsmanship.

OTHER SUGGESTION INCLUDE

Department stores are the prime sales and marketing channel for leather
consumer goods. In addition, store decorations and product displays should
be designed to create a strong first impression. Seasonal promotion
campaigns, like special discounts and advertisements, could be employed.
New lines of collections should be introduced for festivals.

In addition to promotional activities in shopping malls and department

stores, discounts and TV commercials are considered effective channels for
promotion. It is advisable to pay attention to the affordability of customers
in different cities, while setting price points for different product categories.
Meanwhile, leather shoes offer better growth potential.

Popular materials used for leather consumer goods include bovine skin,
goat/kid/lamb/sheep skin and crocodile skin. Regarding colors, black is by
far most sought-after with dark brown in second place.

Due to their growing spending power, the rising middle class should be the
target of Hong Kong's sellers of leather consumer goods. Hong Kong
companies should put more emphasis on products for business use. In
addition, it is useful to introduce appropriate designs that cater for the tastes
of the middles class.

Double Click 2006 Consumer Email Study October 2006, the fourth of
Double-Click annual consumer email studies points to an increasing
sophistication in consumer usage of email functionality and a corresponding
complexity of purchasing behavior. The Spam crisis continues to affect
consumer behavior online but does not necessarily cloud consumer
receptiveness to legitimate marketers: an overwhelming majority of online
consumers receive offers by email and have made a purchase online or
offline as a result. Consumers are using available tools to limit spam and are
employing operate email accounts for purchasing, all in attempts to increase
control and improve their email experience. Working with Beyond Interactive
and the NFO//net source panel of 900,000 US consumers, polled
1,000consumers via email from July 30 - August5, 2007. All respondents
recruited use email/internet 1+ times per week, which reflects the usage of
the larger online population (94% of the 18+ online population according to
Nielsen, 2006).There was an equal segmentation of men and women and the
average age was 42.7.This is the fourth of an annual series of consumer
research studies and trending information was derived using the data from
previous years. The sample mirrored previous studies and is reflective of the
online population as a whole.
Key Findings The majority of consumers receive some kind of marketing
email with special offers from retailers most common Sender recognition
most impacts operates, while content relevance increases likeliness to
purchase Frequency ascertain category, are very specific to the category of
email but vary greatly from one consumer to the next; frequency of
permission based email is clearly a great concern to consumers and has an
impact on what they consider to be Spam. Email drives multi-channel
purchases and has an immediate as well as a latent Nearly 64% of
consumers cite the line as the most important factor in opening an
email.2006 Consumer Email Study impact. It drives consumers most often
to the online channel but also results in retail and catalog sales. Consumers
have become sophisticated in their use of ISP-supplied tools to limits Pam
and in their usage of various email addresses to manage their varied email
activities Home and free email addresses are most often used for
purchasing, within email address specifically designated for that usage. Men
and women have radically different ideas of what spam is and different
purchasing behavior related to Spam. Women are more receptive to
promotions and discounts and correspondingly more interested in and
tolerant of marketing emails than men. Receptiveness to Marketer Emails.
The vast majority (91%) of consumers receive some form of permission-
based email with 57.2% receiving special offers from online merchants,
55.4% receiving them from traditional retailers, and 48.5%receiving them
from catalogers. Other popular types of marketing emails included account
statements/online bill payment information (received by 49.8% of
respondents), travel emails (43.3%), coupons for groceries (40.0%), health
(41.1%) and household tips/recipes/crafts (42.1%). Of categories in which
consumers do not currently receive e-mails, respondents are most interested
in receiving grocery coupons (cited by 22.1%) and household
tips/recipes/crafts (13.6%).Other categories of strong interest were
electronics and computer software/hardware, 13.8% and apparel/shoes
at12.3%. Permission-based email also continues to be the preferred method
of contact from the favorite retailer regarding new products, services or
promotions (preferred by 59% of consumers), while only 32.1% preferred
direct mail. Sender Recognition, Content Relevance Most Impacts Purchasing
consideration behavior, the line continues to be the most compelling reason
to open permission-based email, cited by 63.3% of all respondents, an
increase from 59.9% in2005. This speaks to the growing significance of user
recognition of sender and the power of brands — even more important in
an era of spam. Of all types of subject lines, discount offers are the primary
motivational factor for opening permission based email (increased to59.5%
of all respondents from 56.7% in 2007), while compelling news and
information fell from 57.6% of all respondents to 48.6% in 2006.Special
offers from retailers/catalogers received by at least 50% of respondents

When asked what most compelled them to take action on a permission-

based email, product I needed at the time, a reflection of the relevancy of
the offer, was noted by37.8% of all respondents, outranking the next most
common choice, special offer or discount, cited by 35.0% of respondents.
Likeliness to respond could be increased if an email contains relevant
information (noted by 67.3% of respondents) and contains information
based on interests specified to that company. Consumers found
recommendations based on past purchasing behavior less appealing (noted
by only 28.1% of all respondents).Consumers clearly want a degree of
control over what marketers send them and would like their specified
interests taken into account. Consumers are also very specific in their
frequency preferences, with news and weather most often preferred daily,
special offers from retailers, online merchants and catalogers most often
preferred weekly, and account statements/bill payment communications
monthly. However, there’re significant numbers of consumers who vary in
these preferences, with just over20% of those who receive special offers and
discounts from retailers, online merchants and catalogers preferring the
communications to come monthly. In accordance with specified frequency
statements, when asked what concerned them about their inboxes,
frequency of permission-based email was second only to Spam, cited by
42% of respondents. This danger is even more pronounced considering only
28% noted frequency of permission-based email as a concern in2006.
Clearly marketers need to test for optimal frequency and solicit customer
preferences. Email Drives Multi-Channel Purchases But at the Expense of
Offline Retail Permission-based emails clearly drives purchases. Sixty-seven
percent of respondents received an email offer from a Consumers take
action on emails corresponding to product need Relevant content,
information specified by user increases likeliness to respond 2007 Consumer
Email Study, Cataloger or online merchant that resulted in a purchase. Top
purchasing categories were: apparel/shoes at 83.4%making a purchase,
computer software/hardware at 81.4%, gifts/flower sat 77.6%, travel at
77.2%, electronics at77.1% and food at 71.7%. The only under performing
category was financial products and services at 41.5%, which could relate to
the high consideration necessary for these products, the incidence of spam
in this category or lack of interest due to the economy. The channel
purchased in as a result of permission-based email is highly specific to the
category of product: travel had the highest incidence of online purchase
at70% with only 13% purchasing by catalog/phone/mail, while
apparel/shoes had a relatively high incidence of online purchase, 58% with
41% purchasing via offline retail and 23% via catalog, and over the counter
and prescription drugs had equal levels of online and retail purchase at
32%.Email marketing promotes use of the online channel. In comparing the
typical channel purchase behavior of respondents in a variety of categories
to where they were most likely to purchase after receiving permission based
email, the results show that respondents are more likely than usual to use
the online channel for purchasing after receiving a permission based email;
this is true in all categories except financial services. In apparel/shoes,
where 31% would typically buy online, a permission-based email resulted in
an increase of online channel usage to 58%, gifts/flowers saw online channel
lift from 45%to 61%, and electronics from 45% to 60%.For consumers who
receive email offers from retailers in the apparel/shoes category, email
marketing does increase use of the catalog channel. Of those who receive
emails from catalogers, 16% reported that they typically bought via
catalogs. This number rose to 23% saying they had purchased though a
catalog after receiving permission based email. This example illustrates the
direct connection between catalog drops with effectively sequenced email
marketing used as a purchase driver. The Latent Impact of Email Marketing
Most action taken in response to email marketing does not result
immediately from the click. While 27% clicked through and made a purchase
during that same online session, an even greater number, 33.6%, clicked
through to find out more information, then purchased online at a later date.
An additional 12.2% clicked through to find more information and then
purchase offline through catalog or retail. Permission-based offers generate
sales.

As was demonstrated by the great interesting discounts and special offers,

email usage for composing is on the rise and as offline thus latent impact as
well. Seventy two percent of respondents reported having used coupons or
offer codes (an increase of 57% over the 46%who reported using them in
2007). Fifty-eight percent of respondents used the coupon or offer code at
an offline store. All of this latent activity resulting from email marketing
demands that marketers increase their own cross-channel sophistication in
data capture: unless they’re measuring both online and offline purchase
activity, immediate and latent impact, they are not capturing the full effect
of their email performance. Consumers Become More Selective in their
Practices, Increasingly Use Tools to Limit SPAME mail volume as reported by
consumers was up but not markedly so (264 emails per week vs. 254 in
2007). Spam remained the number-one concern about their email box,
noted by 89% of respondents (consistent with last year).The percent of
email received that was Spam 56% was also consistent with2007. What
have changed are their opening practices: Only 27% opened 90% of their
permission based email, while about a third (30%) did so in 2007. In
regards to what they are most likely to do with Spam, an increasing number
are deleting without reading (65% as compared to60% in 2007) and only
4% are reading to determine whether it is of interest (as compared to 5% in
2007 and 18% in2006). The likeliness of unsubscribe has declined markedly
(from 33% in2006 to 24% in 2007).

Perhaps consumers have gotten fed up or decided the activity was futile.
When asked what specifically they were doing to eliminate or limit spam, a
vocal minority, 36.1% reported using a Spam function of their email
program, 15.9%downloaded spam filtering software and13.7% created a
secondary email addressor making online purchases. A key finding of the
2005 study had been the usage of on average 2.6 email addresses per
respondent. This year, respondents have clearly become tired of the
complexity of managing those accounts: this year, only 34% reported
having more than two addresses while44% reported having that many in
2007.Respondents seem to be consolidating, with an average number of
accounts at2.3 in 2007.Latent impact: nearly 46% purchase online or offline
some time after clicking through an email With more than one in-box, what
do consumers consider the primary address? Perhaps in relation to the
amount of job instability and the desire of having a more permanent
address, the home address was considered the primary one. Of those with
multiple addresses, 74% had a specific email address that they used for
online purchasing, with either the home address (cited by 48.3%) and a free
address (cited by 39.7%) as this purchasing address. Retail-oriented email
marketers clearly need to make special efforts at improving deliverability
among the major home ISPs and free email providers as this clearly will
impact overall performance. Mars & Venus: Men Really Are Different from
Women in Respect to Email Marketing Two very specific areas stand out in
how men vs. women react to email marketing: men have a much broader
definition of Spam, while women are much more likely to be active
purchasers as a result of permission-based email. More men than women
consider spam to fall into these very broad definitions: 65% cited an email
from a company that I have done business with but comes too often while
only 56% of women did so, 61% of men cited an email that may have been
permission based but comes too frequently while only 55% of women did so
and 36% cited any email that tries to sell me a product or service while 32%
of women did so. Correspondingly, women are more sensitive to emails of
offensive subject matter (94% women vs. 91% men) .Active purchasers,
those who purchased in multiple product categories or from various types of
companies (multi-channel shoppers) after receiving an email, are more likely
to be women than men. Aloof these data points add up to online behavior
that mirrors offline.

Women remain the primary household purchasers, 2007 Consumer Email

Study Respondents with multiple accounts likely to use a free one for online
purchases Women more likely to be active purchasers, multi-channel
purchasers.

The fourth of Double-Click annual consumer email studies points to an

increasing sophistication in consumer usage of email functionality and a
corresponding complexity of purchasing behavior. The Spam crisis continues
to affect consumer behavior online but does not necessarily cloud consumer
receptiveness to legitimate marketers: an overwhelming majority of online
consumers receive offers by email and have made a purchase online or
offline as a result. Consumers are using available tools to limit spam and are
employing separate email accounts for purchasing, all in attempts to
increase control and improve their email experience. Objectives/Methodology
Double-Click, working with Beyond Interactive and the NFO//net source
panel of 900,000 US consumers, polled 1,000consumers via email from July
30 - August5, 2007. All respondents recruited use email/internet 1+ times
per week, which reflects the usage of the larger online population (94% of
the 18+ online population according to Nielsen, 2007).There was an equal
segmentation of men and women and the average age was 42.7.This is the
fourth of an annual series of consumer research studies and trending
information was derived using the data from previous years. The sample
mirrored previous studies and is reflective of the online population as a
whole. Key Findings The majority of consumers receive some kind of
marketing email with special offers from retailers, online merchants and
catalogers most common Two to one consumers prefer to be contacted by
their favorite retailer regarding new products, services or promotions via
email rather than direct mail. Sender recognition most impacts operates,
while content relevance increases likeliness to purchase Frequency
preferences, or how often respondents prefer to receive emails of ascertain
category, are very specific to the category of email but vary greatly from
one Consumers prefer to be contacted by their favorite retailer via email.

ANNEXURE

QUESTIONNAIRE

1 I buy my own shoes

 Very frequently
 frequently
 sometimes
 never

2 I find buying shoes a pleasurable event.

 Very frequently
 frequently
 sometimes
 never

3. I buy costly shoes

 Very frequently
 frequently
 sometimes
 never

4 for purchasing shoes, I can travel long distance

 Very frequently
 frequently
 sometimes
 never

5 I buy shoes which are liked by my family

 Strongly agree
 Agree
 Indifferent
 Disagree
 Strongly disagree
6 I buy shoes which are advertised attractitively
 Strongly agree
 Agree
 Indifferent
 Disagree
 Strongly disagree

7 I buy shoes which are advertised and endorsed by celebrity.

8 I like to buy shoes which are imported from Paris or Italy.

 Strongly agree
 Agree
 Indifferent
 Disagree
 Strongly disagree

9. I like to buy shoes which are designed in Paris or Italy.

10. I like to buy shoes which are very stylish & of latest design.
 Strongly agree
 Agree
 Indifferent
 Disagree
 Strongly disagree

11. I like to buy shoes which are less expensive but very stylish & of latest
design.
 Strongly agree 30.00
 Agree 50.00
 Indifferent 14.00
 Disagree 4.00
 Strongly disagree 2.00
12. I Like to buy shoes which are not very stylish but comfortable (%.of
Respondents)
 Strongly agree 10.00
 Agree 30.00
 Indifferent 18.00
 Disagree 32.00
 Strongly disagree 10.00

13. I Like to buy shoes which are not stylish but comfortable and long
lasting
 Strongly agree
 Agree
 Indifferent
 Disagree
 Strongly disagree

14 I Like to buy shoes which are expensive & stylish but comfortable
strongly agree
 Agree
 Indifferent
 Disagree
 Strongly disagree

15 I like to buy Nike shoes which are expensive & stylish but comfortable
 Strongly agree 8.00
 Agree 24.00
 Indifferent 4.00
 Disagree 2.00
 Strongly disagree 2.00

16 I like to buy Nike shoes which are not very stylish but comfortable
 Strongly agree 12.00
 Agree 16.00
 Indifferent 2.00
 Disagree 8.00
 Strongly disagree 2.00

17 I like to buy Nikeshoes which are not stylish but comfortable and long
lasting
 Strongly agree 8.00
 Agree 16.00
 Indifferent 2.00
 Disagree 12.00
 Strongly disagree 2.00

18 I like to buy Nikeshoes which are not very stylish but comfortable
 Strongly agree 14.00
 Agree 16.00
 Indifferent
 Disagree
 Strongly disagree

19 I like to buy Nikeshoes which are less expensive but very stylish & of
latest design.
 Strongly agree 4.00
 Agree 10.00
 Indifferent 4.00
 Disagree 14.00
 Strongly disagree 4.00

20 I like to buy Nikeshoes which are very stylish & of latest design.
 Strongly agree 2.00
 Agree 6.00
 Indifferent 8.00
 Disagree 22.00
 Strongly disagree 2.00

21 I like to buy Tailor made shoes which are very stylish & of latest design.
 Strongly agree 10.00
 Agree 38.00
 Indifferent 24.00
 Disagree 16.00
 Strongly disagree 12.00

22 I will certainly buy shoes if high quality matching imitation jewelry given
free.
 Strongly agree 36.00
 Agree 56.00
 Indifferent 4.00
 Disagree 4.00
 Strongly disagree 0.00

23 I will certainly buy shoes if high quality imported scent given free.
 Strongly agree 38.00
 Agree 60.00
 Indifferent 2.00
 Disagree 2.00
 Strongly disagree 0.00

24 My expectation is fulfilled by my shoe supplier.

 Strongly agree 6.00
 Agree 24.00
 Indifferent 42.00
 Disagree 8.00
 Strongly disagree 0.00
 25 Shoe companies should survey customer preferences.
 Strongly agree 24.00
 Agree 56.00
 Indifferent 16.00
 Disagree 2.00
 Strongly disagree 2.00

26 Shoe companies should suggest shoe design using celebrity.

 Strongly agree 32.00
 Agree 52.00
 Indifferent 14.00
 Disagree 2.00
 Strongly disagree 0.00

27 I know exactly what I want in my shoes.

 Strongly agree 8.00
 Agree 26.00
 Indifferent 24.00
 Disagree 22.00
 Strongly disagree 20.00

28 I don’t want to spend too much time on deciding my shoes.

 Strongly agree 28.00
 Agree 58.00
 Indifferent 8.00
 Disagree 6.00
 Strongly disagree 0.00
29 Stores display is the best form of advertisement
 Strongly agree 24.00
 Agree 48.00
 Indifferent 10.00
 Disagree 4.00
 Strongly disagree 0.00

30 T.V advertisement is the best form of advertisement

 Strongly agree 16.00
 Agree 52.00
 Indifferent 4.00
 Disagree 16.00
 Strongly disagree 12.00

31 Buying customized shoe by internet is very attractive.

 Strongly agree 24.00
 Agree 52.00
 Indifferent 4.00
 Disagree 16.00
 Strongly disagree 4.00

32 Buying customized shoe by internet is very attractive. But no spam mail.

 Strongly agree 16.00
 Agree 28.00
 Indifferent 2.00
 Disagree 10.00
 Strongly disagree 44.00

BIBLIOGRAPHY

BOOKS

Marketing Management - Philip Kotler

Consumer Behavior, 6th Edition, by Hawkins, Best ad Coney.

WEBSITES

Nikebiz : NIKE, Inc. Official Site, the world?s largest, leading athletic
brand[/url]
Nike town:
Business.com: - The Business Search Engine and Business Directory for
Business Information[/url]
Apna Bangalore: ]Apnabangalore.com [Home][/url]
Indiainfoline: Indiainfoline.com-Comprehensive information on stock market,
equity, derivatives, companies, Commodities,Forex, Global markets, Mutual
fund, IPO,Personal Finance, insurance, Loans, Credit
cards,money,debt,mortgages,economy,sector[/url]
Nike’s online store for India: [